Unknown. Final rule

42,563 words·~193 min read·/register/2008/06/10/08-1334

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

--- schema: federal-register doc_type: fedreg source_file: FR-2008-06-10.xml --- 73 112 Tuesday, June 10, 2008 Contents Agency Agency for Healthcare Research and Quality NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32711-32714 E8-12765 E8-12768 Agriculture Agriculture Department See Commodity Credit Corporation See Farm Service Agency See Forest Service NOTICES Privacy Act System of Records: APHIS National Animal Identification System (NAIS);

Notice of Indefinite Suspension of Effective Date, 32675 E8-13065 Antitrust Antitrust Division NOTICES Response to Public Comment on Proposed Final Judgement: Abitibi-Consolidated Inc. et al., 32834-32935 E8-11401 Army Army Department See Engineers Corps Centers Centers for Disease Control and Prevention NOTICES Meetings: Establishment of a Community-Clinical Project (2008-R-09); Correction, 32714 E8-12958 Ethics Subcommittee, Advisory Committee to the Director, 32714-32715 E8-12960 Child Child Support Enforcement Office PROPOSED RULES Tribal Child Support Enforcement Program, 32668-32669 E8-13073 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Commodity Commodity Credit Corporation NOTICES 2008-Crop Marketing Assistance Loans and Loan Deficiency Payments for Loan Commodities Except Cotton and Peanuts, 32675-32676 08-1334 Community Community Development Financial Institutions Fund NOTICES Meetings:

Community Development Advisory Board, 32787 08-1342 Defense Defense Department See Engineers Corps See Navy Department Drug Drug Enforcement Administration NOTICES Application; Importer of Controlled Substances: Cambrex Charles City, Inc., 32736 E8-12983 Education Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32684-32685 E8-12989 E8-12990 E8-12991 Employment Employment and Training Administration NOTICES Amended Certification:

Eligibility to Apply for Worker Adjustment Assistance, etc.; Panasonic Shikoku Electronics Corp. of America et al., 32736-32737 E8-12969 E8-12970 E8-12972 Determination: Eligibility to Apply for Worker Adjustment Assistance, etc.; Levi Strauss and Co., etc.; San Antonio, TX, 32737 E8-12974 Investigations: Certifications of Eligibility to Apply for Worker Adjustment Assistance, etc., 32738-32739 E8-12968 Negative Determination on Remand: INVISTA, S.A.R.L. etc.; Chattanooga, TN, 32739-32740 E8-12971 Revised Determination on Reconsideration of Alternative Trade Adjustment Assistance:

Saint-Gobain Vetrotex America et al.; Wichita Falls, TX, 32740 E8-12973 Termination of Investigation: MTD Southwest, Inc.; Tempe, AZ, 32740 E8-12967 Workforce Investment Act; Lower Living Standard Income Level; Correction, 32740-32742 E8-12986 Energy Energy Department See Federal Energy Regulatory Commission RULES Identification and Protection of Unclassified Controlled Nuclear Information, 32637-32648 E8-12978 NOTICES Meetings: Environmental Management Site-Specific Advisory Board;

Nevada, 32685-32686 E8-13008 Record of Decision: Port Angeles-Juan de Fuca Transmission Project, 32686-32697 E8-13013 Engineers Engineers Corps PROPOSED RULES Restricted Area: Blount Island Command and Marine Corps Support Facility-Blount Island, Jacksonville, FL, 32665-32667 E8-12988 NOTICES Environmental Impact Statements; Availability, etc.: Proposed Stormwater Treatment Areas in Everglades Agricultural Area; Palm Beach and Hendry Counties, FL, 32681-32682 E8-12985 EPA Environmental Protection Agency PROPOSED RULES Standards of Performance for Coal Preparation Plants, 32667-32668 E8-12976 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 32703-32706 E8-12999 E8-13016 Draft Toxicological Review: Cerium Oxide and Cerium Compounds and Beryllium and Compounds; Correction, 32706 E8-12998 Executive Executive Office of the President See Presidential Documents Family Family Support Administration See Child Support Enforcement Office Farm Farm Credit Administration NOTICES Meetings; Sunshine Act, 32706 08-1344 Farm Farm Service Agency RULES Guaranteed Loans; Number of Days of Interest Paid on Loss Claims, 32635-32637 E8-12981 FAA Federal Aviation Administration RULES Airworthiness Directives:

Short Brothers Model SD3-60 Airplanes Equipped with Auxiliary Fuel Tank System in Accordance with Supplemental Type Certificate SA00404AT, 32648-32650 E8-12732 PROPOSED RULES Airworthiness Directives: ATR Model ATR42 200, 300, and 320 Airplanes, 32659-32662 E8-12934 NOTICES Environmental statements; availability, etc.: Mammoth Yosemite Airport, Mammoth Lakes, Mono County, CA, 32781-32782 E8-12772 Intent to Rule on Request to Release Airport Property: Scappoose Industrial Airpark, Scappoose, Oregon., 32782 E8-12776 Passenger Facility Charge

(PFC)Approvals and Disapprovals, 32782-32784 E8-12775 FCC Federal Communications Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32706-32707 E8-13010 Meetings; Sunshine Act, 32707-32708 08-1343 Radio Broadcasting Services; AM or FM Proposals To Change The Community of License, 32708 E8-13009 Federal Energy Federal Energy Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32697-32698 E8-12938 Application for Commission Re-Certification of Qualifying Status of Existing Cogeneration Facility: Midland Cogeneration Venture; Limited Partnership, 32699 E8-12940 Availability of Environmental Assessment: Upper Peninsula Power Co., 32699 E8-12939 Combined Notice of Filings, 32699-32701 E8-12929 E8-12930 Filing: Allegheny Power; Allegheny Energy Supply Co., LLC et al., 32701 E8-12937 Duke Energy Ohio, Inc.; Cinergy Corp. et al., 32701-32702 E8-12941 PJM Interconnection L.L.C., 32702 E8-12942 Powerex Corp., 32702 E8-12935 The Toledo Edison Co., 32702-32703 E8-12936 Federal Motor Federal Motor Carrier Safety Administration NOTICES Meetings; Sunshine Act, 32784 08-1340 Federal Reserve Federal Reserve System NOTICES Change in Bank Control Notices: Acquisition of Shares of Bank or Bank Holding Companies, 32708-32709 E8-12966 Change in Bank Control Notices; Acquisition of Shares of Bank or Bank Holding Companies, 32709 E8-12883 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 32709 E8-12885 FTC Federal Trade Commission PROPOSED RULES Guides for the Use of Environmental Marketing Claims; Green Building and Textiles: Public Workshop, 32662-32665 E8-13014 Fish Fish and Wildlife Service NOTICES Environmental Impact Statements; Availability, etc.: Habitat Conservation Plan for South Sacramento, Sacramento County, CA, 32729-32732 E8-12963 Marine Mammal Protection Act; Stock Assessment Report, 32732-32734 E8-12890 Food Food and Drug Administration NOTICES Food Protection Task Force Conference, 32715-32717 E8-13015 Foreign Foreign Assets Control Office RULES International Emergency Economic Powers Act Civil and Criminal Penalties, 32650-32656 E8-12385 Forest Forest Service NOTICES Intent To Prepare Environmental Impact Statement: East Deer Lodge Valley Landscape Restoration Management; Deer Lodge County, MT, 32676-32677 E8-12823 GSA General Services Administration PROPOSED RULES General Services Acquisition Regulation: Mentor-Protege Program, 32669-32674 E8-12923 NOTICES POW/MIA Flag Display, 32710 E8-12996 Health Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Child Support Enforcement Office See Food and Drug Administration See National Institutes of Health Homeland Homeland Security Department See U.S. Customs and Border Protection PROPOSED RULES Privacy Act; Systems of Records, 32657-32659 E8-12785 NOTICES Privacy Act; Systems of Records, 32720-32724 E8-12789 Housing Housing and Urban Development Department NOTICES Annual Adjustment Factor Rent Increase Requirement, 32728-32729 E8-12886 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See National Park Service International International Trade Administration NOTICES Antidumping Duty: Small Diameter Graphite Electrodes from the Peoples Republic of China, 32677-32678 E8-12995 Final Results of Administrative and New Shipper Reviews; Partial Rescission (2006-2007): Brake Rotors From the Peoples Republic of China, 32678-32681 E8-13001 Justice Justice Department See Antitrust Division See Drug Enforcement Administration Labor Labor Department See Employment and Training Administration Land Land Management Bureau NOTICES Alaska Native Claims Selection, 32734 E8-12947 Filing of Plats of Survey: Rhode Island, 32734-32735 E8-12953 Invitation: Coal Exploration License Application (MTM 98207), 32735 E8-12945 NASA National Aeronautics and Space Administration NOTICES Meetings: Astrophysics Subcommittee of the NASA Advisory Council, 32742 E8-12878 National Highway National Highway Traffic Safety Administration NOTICES Petition for Decision that Nonconforming 2004-2005 Ferrari 575 Passenger Cars Are Eligible for Importation, 32784-32785 E8-12955 NIH National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32717-32718 E8-12920 Prospective Grant of Exclusive License: Use of the Licensed Patent Rights to develop fully human and/or humanized monoclonal antibodies, etc., 32719 E8-12925 Recombinant DNA Research: Action Under the NIH Guidelines for Research Involving Recombinant DNA Molecules, 32719-32720 E8-12924 NOAA National Oceanic and Atmospheric Administration NOTICES Marine Fisheries Advisory Committee; Public Meetings, 32681 E8-13012 National Park National Park Service NOTICES Intent to prepare an Environmental Impact Statement; Supplemental Oil and Gas Management Plan: Padre Island National Seashore, Tx, 32735 E8-12984 Navy Navy Department NOTICES Intent to Prepare an Environmental Impact; Announce Public Scoping Meeting: TRIDENT Support Facilities Explosives, Handling Wharf, etc., 32682-32683 E8-12993 Meetings: Chief of Naval Operations Executive Panel, 32683-32684 E8-12962 Nuclear Nuclear Regulatory Commission NOTICES Applications and Amendments to Facility Operating Licenses, 32742-32749 E8-12827 Meetings; Sunshine Act, 32749 08-1339 Withdrawal of Regulatory Guide, 32750 E8-12951 Patent Patent and Trademark Office RULES Rules of Practice Before the Board of Patent Appeals and Interferences in Ex Parte Appeals, 32938-32977 E8-12451 Presidential Presidential Documents ADMINISTRATIVE ORDERS Belarus; Continuation of National Emergency (Notice of June 6, 2008), 32979-32981 08-1345 SEC Securities and Exchange Commission PROPOSED RULES Interactive Data to Improve Financial Reporting, 32794-32832 E8-12596 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32750-32751 E8-12949 Meetings; Sunshine Act, 32751 E8-12931 Proposed Order: Approving Proposal to Establish Fees for Certain Market Data; NYSE Arca, Inc., 32751-32771 E8-12928 Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc., 32771-32775 E8-12948 International Securities Exchange, LLC, 32775-32776 E8-12900 NASDAQ Stock Market LLC, 32776-32778 E8-12901 NYSE Arca, Inc., 32778-32779 E8-12956 SBA Small Business Administration NOTICES Disaster Declaration: Texas, 32779-32780 E8-12982 State State Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32780 E8-12980 Meetings: U.S. Advisory Commission on Public Diplomacy, 32780-32781 E8-12994 Surface Surface Transportation Board NOTICES Meetings: Common Carrier Obligation of Railroads; Transportation of Hazardous Materials, 32786 E8-12944 National Grain Car Council, 32786-32787 E8-12943 Transportation Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See National Highway Traffic Safety Administration See Surface Transportation Board NOTICES Applications: Certificates of Public Convenience and Necessity and Foreign Air Carrier Permits Filed Under Subpart B (Week Ending February 22, 2008), 32781 E8-12979 Treasury Treasury Department See Community Development Financial Institutions Fund See Foreign Assets Control Office Customs U.S. Customs and Border Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32724-32728 E8-12933 E8-12950 E8-12952 E8-12954 E8-12959 E8-12977 Bonds; Approval to Use Authorized Facsimile Signatures and Seals: The Guarantee Company of North America USA, 32728 E8-12957 Veterans Veterans Affairs Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 32787-32792 E8-12897 E8-12899 E8-12903 E8-12905 E8-12912 E8-12916 E8-12917 E8-12921 E8-12922 Separate Parts In This Issue Part II Securities and Exchange Commission, 32794-32832 E8-12596 Part III Justice Department, Antitrust Division, 32834-32935 E8-11401 Part IV Commerce Department, Patent and Trademark Office, 32938-32977 E8-12451 Part V Executive Office of the President, Presidential Documents, 32979-32981 08-1345 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 73 112 Tuesday, June 10, 2008 Rules and Regulations DEPARTMENT OF AGRICULTURE Farm Service Agency 7 CFR Part 762 RIN 0560-AH55 Guaranteed Loans; Number of Days of Interest Paid on Loss Claims AGENCY: Farm Service Agency, USDA. ACTION: Final rule. SUMMARY: The Farm Service Agency

(FSA)is clarifying and simplifying its regulations governing the number of days interest will be paid on loss claims. The liquidation provisions currently provide a timeframe for the interest payment based upon “the date of the decision to liquidate,” which is often difficult to determine. This final rule will eliminate “the date of the decision to liquidate” as the beginning timeframe for the interest payment on loss claims. In addition, FSA is clarifying the guaranteed lender's responsibility for future recoveries. DATES: *Effective Date:* July 10, 2008. FOR FURTHER INFORMATION CONTACT: Marilyn Z. Meese, Senior Loan Officer, Farm Service Agency; telephone:

(202)690-4002; Facsimile:

(202)690-1196; e-mail: *Marilyn.Meese@wdc.usda.gov.* Persons with disabilities who require alternative means for communication (Braille, large print, audio tape, etc.) should contact the USDA Target Center at

(202)720-2600 (voice and TDD). SUPPLEMENTARY INFORMATION: Background This final rule clarifies and simplifies the number of days' interest that may be paid on loss claims for the FSA guaranteed farm loan program. FSA guaranteed loans provide conventional agricultural lenders with up to a 95 percent guarantee of the principal loan amount and accrued interest. When a borrower cannot fully repay the guaranteed loan, the lender submits a loss claim request to FSA for payment of the guaranteed percentage of the unpaid debt, if any, after liquidation of the collateral. As explained in the proposed rule, published on March 27, 2007 (72 FR 14244-14246), there was confusion for both lenders and FSA personnel on how to compute the number of days' interest that may be paid on loss claims. In order to both clarify and simplify this issue the final rule changes the regulations in 7 CFR 762.149(d) to allow a maximum of 210 days of accrued interest from the payment due date. All lenders within 150 days of the payment due date must prepare a liquidation plan under 7 CFR 762.149(b). The reference to 150 days will replace the current language, “within 30 days of the decision to liquidate.” Lenders also must file estimated and final loss claims on all accounts in a timely manner. If the lender expects no loss, a zero dollar estimated loss claim is to be filed. The estimated loss claim need not be filed if the account has already been completely liquidated within the 150 days. In that case, the lender would file only the final loss claim. A final loss claim also needs to be completed for any loan to close out the loan on FSA's financial records as to any remaining liability to the lender. If the loss claim processing exceeds 40 days as a result of FSA's failure to take action on the claim FSA will pay additional interest to the lender after the 40 days. FSA is providing clarification that the payment of a loss claim to the lender does not automatically relieve the borrower from any liability for the debt owed the lender or the lender of responsibility for any future recoveries. After payment of a loss claim by FSA, the lender will continue to have the responsibility to collect the entire loan balance. In 7 CFR 762.148(d), FSA is removing the provision that the date the borrower files for Chapter 7 bankruptcy is the date of the decision to liquidate for purposes of calculating liquidation time frames. If the loan account has been past due prior to the Chapter 7 bankruptcy filing those days will count towards the liquidation timeframes. Finally, the Agency is amending 7 CFR 762.149(i)(1) by stating that as long as a loan is accruing interest, the sale proceeds from the liquidation of assets will be applied to principal first. Summary of Public Comments The 60-day comment period for the proposed rule ended on May 29, 2007. Only one comment was received. The commenter agreed with the proposed rule in three areas and disagreed in four. The commenter agreed that: the number of days of interest paid should not exceed 210 days from the payment due date, the new rule would clarify and simplify the issue, and the current language “within 30 days of the decision to liquidate” should be replaced with a reference to 150 days from the payment due date. The commenter disagreed that a lender should submit an estimated loss claim when no loss is anticipated stating that even though this would help FSA to better monitor the liquidation process it is of no benefit to the lender. It would cause additional time and effort by the lender when they would be terminating the guarantee in the near future. The commenter also stated that the lender has little incentive to submit a zero estimated loss claim report. The commenter indicated that under the current regulation the lender is not required to file an estimated loss claim if no loss is expected and interest stops accruing 90 days after the decision to liquidate. The commenter stated that every time a lender has a loan on which no loss is expected filing a zero dollar estimated loss claim is a waste of time. The current regulation requires the filing of an estimated loss claim if liquidation is expected to take more than 90 days with a specific exception only for loans that will be liquidated in 90 days or less. The regulation also states that “interest accrual will cease 90 days after the decision to liquidate or an estimated loss of zero will be submitted.” It was anticipated that zero estimated loss claims would be filed so FSA could more easily project current loss information. However, that is not happening, and it is hoped that this change will increase awareness and compliance. Additionally, FSA is currently testing an automated loss claim system, which should simplify the process of filing loss claims. We expect that this automated system will be made available to lenders in fiscal year 2009. The time required to file a zero dollar estimated loss claim would be minimal as lenders will only need to show that the estimated recovery is greater than the loan balance. Additionally, FSA's ability to accurately project losses directly benefits the taxpayers and the long-term viability of the guaranteed loan program. Thereby, it indirectly benefits all lenders participating in the program. No changes were made in the final rule as a result of this comment. The commenter had the same objections about filing a final zero dollar loss claim for any loan where an estimated loss claim has been filed. This is not a new requirement, but rather existing policy. Once an estimated loss claim has been processed the only way to close out the account is filing a final loss claim. Therefore, no changes were made in the final rule as a result of this comment. The commenter also objected to the requirement that sale proceeds from the liquidation of assets be applied to principal first as long as the loan is accruing interest. The commenter recognized that this policy would reduce the amount of any loss claim, but felt that the amount would be small. Additionally, the commenter indicated that the requirement would “be inconsistent with normal practices.” The commenter stated that the lender may incur expenses in pursuing collections and the additional interest earned by applying sale proceeds first to interest may be “minimal” but “it still is of some benefit to the lender.” Finally the commenter stated that the argument that since the funds were advanced for the collateral liquidated it was consistent to use the proceeds from the liquidation of those assets to reduce the principal was “not relative on many levels.” No further explanation was provided as to how it was not relative on many levels. The practice of requiring guaranteed lenders to apply the proceeds from the liquidation of collateral principal first is not unique to FSA. Additionally, the requirement only applies while interest is still accruing. It may be a small benefit to FSA, but then FSA bears 90 percent of the risk. No changes were made in the final rule as a result of this comment. Lastly, the commenter disagreed that interest should be paid up to 90 days after the time period the lender is unable to dispose of acquired property due to state imposed redemption rights, if an estimated loss claim was paid by FSA. The commenter stated that the intention was good, but lenders are handicapped due to redemption rights. The commenter provided calculations based on the number of days involved and suggested that interest should be paid longer. However, the only change that FSA made in this paragraph was in the paragraph number, and did not propose changes to the existing practice. The 90 days time period is adequate in most cases and reasonably limits the cost to the Government. Therefore, no changes were made in the final rule as a result of this comment. Executive Order 12866 The Office of Management and Budget

(OMB)designated this final rule as not significant under Executive Order 12866 and, therefore, this final rule did not require review by OMB. Regulatory Flexibility Act The Agency certifies that this rule will not have a significant economic effect on a substantial number of small entities. This rule does require actions on the part of the subject program's borrowers or lenders based on their size. Borrowers may be individuals or entities. No distinction is made between small and large entities. The Agency will bear most of the burden under the revised regulations. The Agency anticipates that the final rule will require submission of no significant additional information, further justifying the conclusion that a Regulatory Flexibility Analysis is not required. The Agency, therefore, concludes that it is not required to perform a Regulatory Flexibility Analysis as required by the Regulatory Flexibility Act, Public Law 96-535, as amended (5 U.S.C. 601). Environmental Evaluation FSA has determined that this final rule would not constitute a major Federal action that would significantly affect the quality of the human environment. Therefore, in accordance with 7 CFR Part 799, Environmental Quality and Related Environmental Concerns—Compliance with the National Environmental Policy Act, implementing the regulations of the Council on Environmental Quality, 40 CFR parts 1500-1508, no environmental assessment or environmental impact statement will be prepared. Executive Order 12988 This rule has been reviewed in accordance with E.O. 12988, Civil Justice Reform. In accordance with that Executive Order:

(1)All State and local laws and regulations that are in conflict with this rule will be preempted;

(2)no retroactive effect will be given to this rule except that lender servicing under this rule will apply to loans guaranteed prior to the effective date of the rule to the extent permitted by existing contracts; and

(3)administrative proceedings in accordance with 7 CFR part 11 must be exhausted before requesting judicial review. Executive Order 12372 For reasons contained in the Notice related to 7 CFR part 3015, subpart V (48 FR 29115, June 24, 1983), the programs and activities within this rule are excluded from the scope of Executive Order 12372, which requires intergovernmental consultation with state and local officials. Unfunded Mandates This rule contains no Federal mandates, as defined by title II of Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, for State, local, and tribal governments or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA. Executive Order 13132 The policies contained in this rule do not have any substantial direct effect on states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. Nor does this rule impose substantial direct compliance costs on state and local governments. Therefore, consultation with the states is not required. Paperwork Reduction Act The amendments to 7 CFR part 762 contained in this rule require no revisions to the information collection requirements that were previously approved by OMB under control number 0560-0155. E-Government Act Compliance FSA is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. Federal Assistance Programs These changes affect the following FSA programs listed in the Catalog of Federal Domestic Assistance: 10.406—Farm Operating Loans 10.407—Farm Ownership Loans List of Subject in 7 CFR Part 762 Agriculture, Banks, Credit, Loan Programs—agriculture. Accordingly, 7 CFR is amended as follows: PART 762—GUARANTEED FARM LOANS 1. The authority citation for part 762 continues to read as follows: Authority: 5 U.S.C. 301; 7 U.S.C. 1989. § 762.148 [Amended] 2. Amend § 762.148(d)(1) by removing the second sentence. 3. Amend § 762.149 by revising paragraphs (b)(1) introductory text, (b)(1)(v),

(d)introductory text, (d)(2), (i)(1), and (i)(5) to read as set forth below. § 762.149 Liquidation.

(b)* * *

(1)Within 150 days after the payment due date, all lenders will prepare a liquidation plan. Standard eligible and CLP lenders will submit a written liquidation plan to the Agency which includes:

(v)An estimated loss claim must be filed no later than 150 days past the payment due date unless the account has been completely liquidated and then a final loss claim must be filed.

(d)*Estimated loss claims.* An estimated loss claim must be submitted by all lenders no later than 150 days after the payment due date unless the account has been completely liquidated and then a final loss claim must be filed. The estimated loss will be based on the following:

(2)The lender will discontinue interest accrual on the defaulted loan at the time the estimated loss claim is paid by the Agency. The Agency will not pay interest beyond 210 days from the payment due date. If the lender estimates that there will be no loss after considering the costs of liquidation, an estimated loss of zero will be submitted and interest accrual will cease upon the approval of the estimated loss and never later than 210 days from the payment due date. The following exceptions apply:

(i)In the case of a Chapter 7 bankruptcy, in cases where the lender filed an estimated loss claim, the Agency will pay the lender interest that accrues during and up to 45 days after the discharge on the portion of the chattel only secured debt that was estimated to be secured, but upon final liquidation was found to be unsecured, and up to 90 days after the date of discharge on the portion of real estate secured debt that was estimated to be secured, but was found to be unsecured upon final disposition.

(ii)The Agency will pay the lender interest that accrues during and up to 90 days after the time period the lender is unable to dispose of acquired property due to state imposed redemption rights on any unsecured portion of the loan during the redemption period, if an estimated loss claim was paid by the Agency during the liquidation action.

(i)*Final loss claims.*

(1)Lenders must submit a final loss claim when the security has been liquidated and all proceeds have been received and applied to the account. All proceeds must be applied to principal first and then toward accrued interest if the interest is still accruing. The application of the loss claim payment to the account does not automatically release the borrower of liability for any portion of the borrower's debt to the lender. The lender will continue to be responsible for collecting the full amount of the debt and sharing these future recoveries with the Agency in accordance with paragraph

(j)of this section.

(5)The Agency will notify the lender of any discrepancies in the final loss claim or, approve or reject the claim within 40 days. Failure to do so will result in additional interest being paid to the lender for the number of days over 40 taken to process the claim. Signed at Washington, DC, on May 5, 2008. Thomas B. Hofeller, Acting Administrator, Farm Service Agency. [FR Doc. E8-12981 Filed 6-9-08; 8:45 am] BILLING CODE 3410-05-P DEPARTMENT OF ENERGY 10 CFR Part 1017 RIN 1992-AA35 Identification and Protection of Unclassified Controlled Nuclear Information AGENCY: Office of Health, Safety and Security, Department of Energy. ACTION: Final rule. SUMMARY: The Department of Energy

(DOE)is today publishing a final rule to amend regulations that prohibit the unauthorized dissemination of certain unclassified but sensitive information identified as Unclassified Controlled Nuclear Information (UCNI). DOE is amending these regulations to clarify the types of information that may be identified as UCNI; to prevent overly-broad application of UCNI controls; and to streamline the UCNI program by simplifying the process for identifying information as UCNI. DATES: *Effective Date:* This final rule is effective December 8, 2008. FOR FURTHER INFORMATION CONTACT: Nicholas G. Prospero, Office of Classification, U.S. Department of Energy, 1000 Independence Ave., SW., Washington, DC 20585-1290,

(301)903-9967; Jo Ann Williams, Office of the General Counsel, U.S. Department of Energy, 1000 Independence Ave., SW., Washington, DC 20585,

(202)586-6899. SUPPLEMENTARY INFORMATION: I. Background II. DOE's Response to Comments III. Procedural Requirements A. Review Under Executive Order 12866 B. Review Under the Regulatory Flexibility Act C. Review Under the Paperwork Reduction Act D. Review Under the National Environmental Policy Act E. Review Under Executive Order 13132 F. Review Under Executive Order 12988 G. Review Under the Unfunded Mandates Reform Act of 1995 H. Review Under the Treasury and General Government Appropriations Act, 1999 I. Review Under the Treasury and General Government Appropriations Act, 2001 J. Review Under Executive Order 13211 K. Congressional Notification I. Background Under the Atomic Energy Act of 1954 (42 U.S.C. 2011 *et seq.* ), DOE is charged with the operation of programs for research, development, testing, and production of nuclear weapons; for nuclear material production for defense activities; and for certain defense-related nuclear reactors. In 1981, Congress and DOE became increasingly concerned about the possibility of terrorist or other criminal acts directed against a Government nuclear defense activity. This concern was based, in part, on the increased incidence of acts of terrorist-inspired violence, the increased sophistication of these acts, and the increased availability of the technological resources, including information in the public domain, necessary to commit these acts. In response to this threat, Congress, in 1982, amended the Atomic Energy Act of 1954 (hereafter “the Act”) by adding section 148 (“Prohibition Against the Dissemination of Certain Unclassified Information”), which directed DOE to adopt regulations to safeguard certain types of unclassified but sensitive information from unauthorized dissemination in the interest of protecting both the health and safety of the public and the common defense and security of the Nation. Congress recognized that while much information concerning atomic energy defense programs was classified, a new statutory provision was necessary to protect certain sensitive information that could not be classified under statute or executive order for operational or legal reasons. Section 148 was not without precedent. In 1980, the Congress amended the Act to add section 147. Section 147 of the Act requires the Nuclear Regulatory Commission to prohibit the unauthorized disclosure of Safeguards Information, which includes a licensee's or applicant's procedures and security measures for the protection of special nuclear material, source material, or byproduct material. Under section 147, Safeguards Information also includes security measures for the protection of and location of certain plant equipment vital to the safety of production or utilization facilities. The major purpose of section 148 is to require DOE to control similar sensitive information about its atomic energy defense programs as section 147 protects with respect to commercial and other non-DOE nuclear facilities. Section 148 directs the Secretary of Energy (the Secretary) to prescribe regulations, after notice and opportunity for public comment, or issue orders as may be necessary to prohibit the unauthorized dissemination of certain unclassified information concerning atomic energy defense programs. This information must pertain to the following: 1. The design of production or utilization facilities; 2. Security measures (including security plans, procedures, and equipment) for the physical protection of

(a)production or utilization facilities or

(b)nuclear material, regardless of its physical state or form, contained in these facilities or in transit; or, 3. The design, manufacture, or utilization of nuclear weapons or components that were once classified as Restricted Data, as defined in section 11y. of the Act. In order for the information in the above categories to be controlled under section 148, the Secretary must determine that the unauthorized dissemination of such information could reasonably be expected to have a significant adverse effect on the health and safety of the public or the common defense and security by significantly increasing the likelihood of:

(1)The illegal production of nuclear weapons, or

(2)the theft, diversion, or sabotage of nuclear materials, equipment, or facilities. UCNI only includes Government information that:

(1)is not classified;

(2)concerns atomic energy defense programs;

(3)falls within at least one of the three categories described above;

(4)meets the adverse effect test described above; and

(5)is not exempt from being UCNI under these regulations. On September 14, 2007, DOE published a notice of proposed rulemaking

(NOPR)for the purpose of clarifying and updating its UCNI regulations at 10 CFR part 1017. 72 FR 52506. Part 1017 provides for the review of information prior to its designation as UCNI; describes how information is determined to be UCNI; establishes minimum physical protection standards for documents and material containing UCNI; specifies who may have access to UCNI; and establishes a procedure for the imposition of penalties on persons who violate section 148 of the AEA, DOE regulations or any order of the Secretary issued under section 148. As explained in the NOPR, DOE proposed certain changes to simplify and streamline the UCNI program based on experience gained in the program. 72 FR 52507-09. II. DOE's Response to Comments The following discussion describes the major issues raised in comments received and provides DOE's response to these comments, and describes any resulting changes in the final regulations. DOE has also made a few editorial, stylistic, and format changes for clarity and consistency. One commenter suggested that the intent of adding the definition of “utilization facility” as described in the NOPR (Section II, Description of Proposed Changes, A.1), did not appear to be consistent with the definition for “utilization facility” in proposed § 1017.4. DOE disagrees. The intent of adding the definition of “utilization facility” is to more precisely define the types of information that can be UCNI. DOE has done this by

(1)linking the definition of “utilization facility” to the presence of special nuclear material and

(2)including within the definition of “utilization facility” specific categories of equipment and devices that can be UCNI. The proposed definition of “utilization facility” in § 1017.4 is based on the definition from the Act, which defines “utilization facility” as “any equipment or device, except an atomic weapon, determined by rule of the Commission to be capable of making use of special nuclear material in such quantity as to be of significance to the common defense and security.” Therefore, the first condition that must be met in order to determine whether a facility is a “utilization facility” is that it must use or be capable of using special nuclear material. The proposed definition of “utilization facility” also contains specific lists of equipment, devices, or component parts. If the equipment, device, or component part is not on one of the lists provided in the definition, then it does not meet the second condition and therefore cannot be determined to be a “utilization facility.” Our intent as described in the NOPR is to more precisely define what information may be identified as UCNI. Since our proposed definition of “utilization facility” provides this more precise definition, DOE finds them to be consistent. This commenter was also concerned that the definitions of “utilization facility” and “production facility” in § 1017.4 do not provide adequate information for the contractor to determine whether any of its sites is an “UCNI sensitive facility” for purposes of a DOE internal directive, UCNI General Guideline (GG-5). Because this comment applies to provisions set forth in that directive, not in these regulations, DOE will consider the comment in revising that directive. This commenter questioned why the language in the NOPR (Section II, A.1.) stating that storage facilities are not considered to be production or utilization facilities was not included in the regulatory text. The definitions for “production facility” and “utilization facility” in § 1017.4 include lists of specific categories of equipment and devices and provide the necessary information for a site to determine whether any of its facilities meet the definition of “production facility” or “utilization facility” and whether any should be subject to UCNI controls. DOE included in the NOPR preamble several examples of facilities, like storage facilities, that do not meet the definition of either “production facility” or “utilization facility” to further clarify the coverage of the definitions. However, DOE sees no need to include examples of what is not covered in the definitions. The commenter suggested that the definitions of “production facility” and “utilization facility” were phrased incorrectly because they describe “any equipment or device.” DOE disagrees. The terms “production facility” and “utilization facility” are defined in the Act, and both definitions begin with the language “any equipment or device.” These terms have specific meanings in relation to special nuclear material. The plain language definition and usage of the word “facility” should not be confused with the definitions of “production facility” and “utilization facility” as used in these regulations. The commenter also suggested that our clarification of the concept of “widely disseminated in the public domain” did not consider the highly motivated malefactor who might use the professional staff at a research or public library to locate a report that was once widely disseminated in the public domain. DOE's position is that if the report can be found by anyone at the library, with or without help, then it is considered “widely disseminated in the public domain” and it cannot be protected as UCNI. A second commenter pointed out that our proposed criteria for determining whether a document is widely disseminated in the public domain in proposed § 1017.15(a) was too narrow because it did not include documents housed in Government technical information services or depository library systems. We agree with the commenter and have modified the language in § 1017.15(a) to read, “The Reviewing Official must first determine whether the document is widely disseminated in the public domain, which means that the document under review is publicly available from a Government technical information service or depository library, for example, or that it can be found in a public library or an open literature source, or it can be accessed on the Internet using readily available search methods.” One commenter noted that the language in proposed § 1017.10 discussing the “adverse effect test” described information that could be classified under DOE classification guidance and suggested that the word “significant” before “adverse effect” be deleted. The “significant adverse effect” standard in § 1017.10 is the standard set by paragraph a.(2) of section 148 of the Act, which provides the criteria for DOE to use in determining that information is UCNI. This commenter also suggested a change to the language in proposed § 1017.17(b) concerning marking a document or material that does not contain UCNI. The commenter points out that while no UCNI markings are required if the document or material does not contain UCNI, other unclassified control markings may be. DOE agrees and has modified the language to read, “No UCNI markings are required in this case.” The commenter also observed that use of the terms “special nuclear material” and “nuclear material” was blurred throughout the regulations. These terms are used throughout the regulations in the appropriate context. “Nuclear material” is defined in § 1017.4. For convenience, DOE has added a definition of “special nuclear material” to § 1017.4. DOE received two comments regarding the civil penalty enforcement provisions in the proposed rule. The first comment relates to proposed § 1017.29(l)(5), renumbered as § 1017.29(m)(5), which states that DOE has the burden of going forward with and of proving by a preponderance of the evidence that the violation occurred as set forth in the final notice of violation and that the proposed civil penalty is appropriate. The commenter suggested that the standard of “clear and convincing evidence” was more appropriate than “preponderance of evidence.” DOE rejects this comment because “the preponderance of evidence” is the standard in most civil cases in the United States and it is the standard in “Procedural Rules for the Assessment of Civil Penalties for Classified Information Security Violations” (10 CFR part 824). This commenter also stated that the proposed civil penalty provisions do not provide for enforcement conferences or provide the opportunity for DOE to mitigate the fines. We have accepted this comment in part and added a new § 1017.29(e) “Enforcement conference” that is modeled after § 820.22 “Informal conference” of “Procedural Rules for DOE Nuclear Activities” (10 CFR part 820). The Director may convene this conference to obtain and discuss information including mitigating circumstances. DOE notes, however, that mitigation was already provided for in DOE's proposed regulations. Proposed section 1017.29(m)(1), renumbered in the final rule as § 1017.29(n)(1), sets out the mitigating factors that the hearing officer will consider in determining the amount of the civil penalty. The mitigating factors listed are identical to those set forth in 10 CFR 824.13 related to classified information. Section 1017.29(n)(2) in the final rule also provides that the Secretary reviewing an initial decision may modify the amount of any civil penalty proposed. III. Procedural Requirements A. Review Under Executive Order 12866 Today's regulatory action has been determined not to be a “significant regulatory action” under Executive Order 12866, “Regulatory Planning and Review,” 58 FR 51735 (October 4, 1993). Accordingly, this notice of final rulemaking was not subject to review by OMB under the Executive Order. B. Review Under the Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) requires preparation of an initial regulatory flexibility analysis for any rule that by law must be proposed for public comment, unless the agency certifies that the rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. As required by Executive Order 13272, “Proper Consideration of Small Entities in Agency Rulemaking,” 67 FR 53461 (August 16, 2002), DOE published procedures and policies to ensure that the potential impacts of its draft rules on small entities are properly considered during the rulemaking process (68 FR 7990, February 19, 2003), and has made them available on the Office of the General Counsel's Web site: *http://www.gc.doe.gov* . DOE has reviewed today's rule under the provisions of the Regulatory Flexibility Act and the procedures and policies published on February 19, 2003. Today's final rule amends DOE's policies and procedures regarding UCNI. The rule will apply to all agencies, persons, and entities that generate and maintain UCNI documents or material. DOE estimates that fewer than five Federal Government entities have access to UCNI documents or material. Each of these Government entities may, in turn, have contractors or consultants who have access to UCNI documents or material. Section 1017.14 imposes on Government and non-Government entities the requirement that persons who review documents for UCNI be properly trained and certified. The economic impact of the training requirement on non-Government entities would be limited to the labor hours required to familiarize those persons reviewing documents for UCNI with the training materials provided by DOE. Section 1017.16 requires that Government and non-Government Reviewing Officials clearly mark or authorize the marking of a new document or material to convey that it contains UCNI. The burden of the marking requirement would vary depending on the number of documents or amount of material the entity generates. DOE considers the proper marking of a controlled document to be an act integrated in the act of creating the document. As such, the marking of documents or material containing UCNI imposes minimal costs on the entity generating new UCNI documents or material. DOE recognizes that in most cases non-Government entities that generate documents or material containing UCNI will do so pursuant to a Government contract. In such cases, any costs incurred in compliance with these regulations will be charged back to the Government. Infrequently, DOE may enter into an agreement (e.g., a Cooperative Research and Development Agreement) with a non-Government entity in which DOE provides UCNI to the entity without any vehicle for reimbursement by the Government for increased security costs. However, since UCNI is protected in a manner similar to how a company protects proprietary or employees' personal information, the incremental cost of protecting UCNI would be negligible. In these cases, this rule will have only a minor economic impact on very few small entities. On the basis of the foregoing, DOE certifies that the rule will not have a significant economic impact on a substantial number of small entities. No comments were received regarding this certification or the economic impact of this rule. Accordingly, DOE has not prepared a regulatory flexibility analysis for this rulemaking. C. Review Under the Paperwork Reduction Act No new information or record keeping requirements are imposed by this rulemaking. Accordingly, no OMB clearance is required under the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ). D. Review Under the National Environmental Policy Act of 1969 DOE has concluded that promulgation of this rule falls into a class of actions that would not individually or cumulatively have a significant impact on the human environment, as determined by DOE's regulations implementing the National Environmental Policy Act of 1969 (42 U.S.C. 4321 *et seq.* ). Specifically, this rule deals only with agency procedures and, therefore, is covered under the Categorical Exclusion in paragraph A6 to subpart D, 10 CFR part 1021. Accordingly, neither an environmental assessment nor an environmental impact statement is required. E. Review Under Executive Order 13132 Executive Order 13132, “Federalism,” 64 FR 43255 (August 4, 1999) imposes certain requirements on agencies formulating and implementing policies or regulations that preempt State law or that have federalism implications. Agencies are required to examine the constitutional and statutory authority supporting any action that would limit the policymaking discretion of the States and carefully assess the necessity for such actions. The Executive Order also requires agencies to have an accountable process to ensure meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications. On March 14, 2000, DOE published a statement of policy describing the intergovernmental consultation process it will follow in the development of such regulations (65 FR 13735). DOE has examined today's final rule and has determined that it does not preempt State law and does not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. No further action is required by Executive Order 13132. F. Review Under Executive Order 12988 With respect to the review of existing regulations and the promulgation of new regulations, section 3(a) of Executive Order 12988, “Civil Justice Reform,” 61 FR 4729 (February 7, 1996), imposes on Federal agencies the general duty to adhere to the following requirements:

(1)Eliminate drafting errors and ambiguity;

(2)write regulations to minimize litigation; and

(3)provide a clear legal standard for affected conduct rather than a general standard and promote simplification and burden reduction. Section 3(b) of Executive Order 12988 specifically requires that Executive agencies make every reasonable effort to ensure that the regulation:

(1)Clearly specifies the preemptive effect, if any;

(2)clearly specifies any effect on existing Federal law or regulation;

(3)provides a clear legal standard for affected conduct while promoting simplification and burden reduction;

(4)specifies the retroactive effect, if any;

(5)adequately defines key terms; and,

(6)addresses other important issues affecting clarity and general draftsmanship under any guidelines issued by the Attorney General. Section 3(c) of Executive Order 12988 requires Executive agencies to review regulations in light of applicable standards in section 3(a) and section 3(b) to determine whether they are met or it is unreasonable to meet one or more of them. DOE has completed the required review and determined that, to the extent permitted by law, this final rule meets the relevant standards of Executive Order 12988. G. Unfunded Mandates Reform Act of 1995 Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires a Federal agency to perform a written assessment of the anticipated costs and benefits of any rule that includes a Federal mandate which may result in costs to State, local, or tribal governments, in the aggregate, or to the private sector, of $100 million or more in any one year (adjusted annually for inflation). 2 U.S.C. 1532(a) and (b). Section 204 of that title requires each agency that proposes a rule containing a significant Federal intergovernmental mandate to develop an effective process for obtaining meaningful and timely input from elected officers of State, local, and tribal governments. 2. U.S.C. 1534. This final rule will not impose a Federal mandate on State, local and tribal governments or on the private sector. Accordingly, no assessment or analysis is required under the Unfunded Mandates Reform Act of 1995. H. Review Under the Treasury and General Government Appropriations Act, 1999 Section 654 of the Treasury and General Government Appropriations Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family Policymaking Assessment for any rule that may affect family well-being. This final rule will not have any impact on the autonomy or integrity of the family as an institution. Accordingly, DOE has concluded that it is not necessary to prepare a Family Policymaking Assessment. I. Review Under the Treasury and General Government Appropriations Act, 2001 The Treasury and General Government Appropriations Act, 2001 (44 U.S.C. 3516 note) provides for agencies to review most disseminations of information to the public under guidelines established by each agency pursuant to general guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). DOE has reviewed today's notice under the OMB and DOE guidelines and has concluded that it is consistent with applicable policies in those guidelines. J. Review Under Executive Order 13211 Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,” 66 FR 28355 (May 22, 2001) requires Federal agencies to prepare and submit to the Office of Information and Regulatory Affairs (OIRA), Office of Management and Budget, a Statement of Energy Effects for any proposed significant energy action. A “significant energy action” is defined as any action by an agency that promulgated or is expected to lead to promulgation of a final rule, and that:

(1)Is a significant regulatory action under Executive Order 12866, or any successor order; and

(2)is likely to have a significant adverse effect on the supply, distribution, or use of energy, or

(3)is designated by the Administrator of OIRA as a significant energy action. For any proposed significant energy action, the agency must give a detailed statement of any adverse effects on energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use. Today's regulatory action is not a significant energy action. Accordingly, DOE has not prepared a Statement of Energy Effects. K. Congressional Notification As required by 5 U.S.C. 801, DOE will report to Congress promulgation of this rule prior to its effective date. The report will state that it has been determined that the rule is not a “major rule” as defined by 5 U.S.C. 804. List of Subjects in 10 CFR Part 1017 Administrative practice and procedure, Government contracts, Nuclear energy, Penalties, Security measures. Issued in Washington, DC on June 4, 2008. Glenn Podonsky, Chief Health, Safety and Security Officer, Office of Health, Safety and Security. For the reasons set out in the preamble, DOE revises part 1017 of Chapter X of Title 10 of the Code of Federal Regulations to read as follows: PART 1017—IDENTIFICATION AND PROTECTION OF UNCLASSIFIED CONTROLLED NUCLEAR INFORMATION Subpart A—General Overview Sec. 1017.1 Purpose and scope. 1017.2 Applicability. 1017.3 Policy. 1017.4 Definitions. 1017.5 Requesting a deviation. Subpart B—Initially Determining What Information Is Unclassified Controlled Nuclear Information 1017.6 Authority. 1017.7 Criteria. 1017.8 Subject areas eligible to be Unclassified Controlled Nuclear Information. 1017.9 Nuclear material determinations. 1017.10 Adverse effect test. 1017.11 Information exempt from being Unclassified Controlled Nuclear Information. 1017.12 Prohibitions on identifying Unclassified Controlled Nuclear Information. 1017.13 Report concerning determinations. Subpart C—Review of a Document or Material for Unclassified Controlled Nuclear Information 1017.14 Designated officials. 1017.15 Review process. 1017.16 Unclassified Controlled Nuclear Information markings on documents or material. 1017.17 Determining that a document or material no longer contains or does not contain Unclassified Controlled Nuclear Information. 1017.18 Joint documents or material. Subpart D—Access to Unclassified Controlled Nuclear Information 1017.19 Access limitations. 1017.20 Routine access. 1017.21 Limited access. Subpart E—Physical Protection Requirements 1017.22 Notification of protection requirements. 1017.23 Protection in use. 1017.24 Storage. 1017.25 Reproduction. 1017.26 Destruction. 1017.27 Transmission. 1017.28 Processing on Automated Information Systems (AIS). Subpart F—Violations 1017.29 Civil penalty. 1017.30 Criminal penalty. Authority: 42 U.S.C. 7101 *et seq.* ; 50 U.S.C. 2401 *et seq.* ; 42 U.S.C. 2168; 28 U.S.C. 2461. Subpart A—General Overview § 1017.1 Purpose and scope.

(a)This part implements section 148 of the Atomic Energy Act (42 U.S.C. 2168) which prohibits the unauthorized dissemination of certain unclassified Government information. This information identified by the term “Unclassified Controlled Nuclear Information”

(UCNI)consists of certain design and security information concerning nuclear facilities, nuclear materials, and nuclear weapons.

(b)This part:

(1)Provides for the review of information prior to its designation as UCNI;

(2)Describes how information is determined to be UCNI;

(3)Establishes minimum physical protection standards for documents and material containing UCNI;

(4)Specifies who may have access to UCNI; and,

(5)Establishes a procedure for the imposition of penalties on persons who violate section 148 of the Atomic Energy Act or any regulation or order of the Secretary issued under section 148 of the Atomic Energy Act, including this part.

(c)This part does not apply to information controlled under 10 U.S.C. 128 by the Department of Defense. § 1017.2 Applicability. This part applies to any person who is or was authorized access to UCNI, requires authorized access to UCNI, or attempts to gain or gains unauthorized access to UCNI. § 1017.3 Policy. The Department of Energy

(DOE)strives to make information publicly available to the fullest extent possible. Therefore, this part must be interpreted and implemented to apply the minimum restrictions needed to protect the health and safety of the public or the common defense and security consistent with the requirement in section 148 of the Atomic Energy Act to prohibit the unauthorized dissemination of UCNI. § 1017.4 Definitions. As used in this part: *Atomic Energy Act* means the Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 *et seq.* ). *Atomic energy defense programs* means Government activities, equipment, and facilities that are capable of:

(1)Developing, producing, testing, sampling, maintaining, repairing, modifying, assembling or disassembling, using, transporting, or retiring nuclear weapons or components of nuclear weapons; or

(2)Producing, using, or transporting nuclear material that could be used in nuclear weapons or military-related utilization facilities. *Authorized Individual* means a person who has routine access to UCNI under § 1017.20. *Component* means any operational, experimental, or research-related part, subsection, design, or material used in the manufacture or utilization of a nuclear weapon, nuclear explosive device, or nuclear weapon test assembly. *Denying Official* means a DOE official designated under 10 CFR 1004.2(b) who is authorized to deny a request for unclassified information that is exempt from release when requested under the Freedom of Information Act (FOIA). *Director* means the DOE Official, or his or her designee, to whom the Secretary has assigned responsibility for enforcement of this part. *Document* means the physical medium on or in which information is recorded, regardless of its physical form or characteristics. *DOE* means the United States Department of Energy, including the National Nuclear Security Administration (NNSA). *Essential technology-related information* means technical information whose unauthorized dissemination could significantly increase the likelihood of the illegal production of a nuclear weapon. *Exploitable security-related information* means information whose unauthorized dissemination could significantly increase the likelihood of the theft, diversion, or sabotage of nuclear material, equipment, or facilities. *Government* means the Executive Branch of the United States Government. *Government information* means any fact or concept, regardless of its physical form or characteristics, that is owned by, produced by or for, or otherwise controlled by the United States Government, including such facts or concepts that are provided by the Government to any person, including persons who are not employees of the Government. *Guidance* means detailed written instructions that describe decisions made by the Secretary or his/her designee issued under Subpart B of these regulations concerning what specific information is UCNI. *Illegal production* means the production or manufacture of a nuclear weapon in violation of either domestic (e.g., the Atomic Energy Act) or international (e.g., the Treaty on the Non-Proliferation of Nuclear Weapons) law. *In transit* means the physical movement of a nuclear weapon, a component of a nuclear weapon containing nuclear material, or nuclear material from one part to another part of a facility or from one facility to another facility. An item is considered “in transit” until it has been relinquished to the custody of the authorized recipient and is in storage at its ultimate destination. An item in temporary storage pending shipment to its ultimate destination is “in transit.” *Limited access* means access to specific UCNI granted by the cognizant DOE Program Secretarial Officer or a Deputy or Associate Administrator of the NNSA to an individual not eligible for routine access (see § 1017.21). *Material* means a product ( *e.g.* , a part or a machine) or substance (e.g., a compound or an alloy), regardless of its physical form or characteristics. *Need to know* means a determination made by an Authorized Individual that a person requires access to specific UCNI to perform official duties or other Government-authorized activities. *Nuclear material* means special nuclear material, byproduct material, or source material as defined by sections 11.aa., 11.e., and 11.z., respectively, of the Atomic Energy Act (42 U.S.C. 2014 aa., e., and z), or any other material used in the production, testing, utilization, or assembly of nuclear weapons or components of nuclear weapons that the Secretary determines to be nuclear material under § 1017.9(a). *Nuclear weapon* means atomic weapon as defined in section 11.d. of the Atomic Energy Act (42 U.S.C. 2014 d). *Person* means any person as defined in section 11.s. of the Atomic Energy Act (42 U.S.C. 2014 s) or any affiliate or parent corporation thereof. *Production facility* means:

(1)Any equipment or device capable of producing special nuclear material in such quantity as to be of significance to the common defense and security or in such manner as to affect the health and safety of the public; or

(2)Any important component part especially designed for such equipment or device.

(3)For the purposes of this part, equipment and devices described in paragraphs

(1)and

(2)of this definition include only:

(i)Government uranium isotope enrichment equipment or devices and any other uranium isotope enrichment equipment or devices that use related technology provided by the Government; or

(ii)Government plutonium production reactors, isotope enrichment equipment or devices, and separation and purification equipment or devices and other such equipment or devices that use related technology provided by the Government. *Reviewing Official* means an individual authorized under § 1017.14(a) to make a determination, based on guidance, that a document or material contains UCNI. *Routine access* means access to UCNI granted by an Authorized Individual to an individual eligible to receive UCNI under § 1017.20 in order to perform official duties or other Government-authorized activities. *Secretary* means the Secretary of Energy. *Special nuclear material* means:

(1)Plutonium, uranium enriched in the isotope 233 or in the isotope 235, and any other material which DOE or the Nuclear Regulatory Commission, pursuant to the provisions of section 51 of the Atomic Energy Act (42 U.S.C. 2071), determines to be special nuclear material, but does not include source material; or

(2)Any material artificially enriched by any of the foregoing, but does not include source material. *Unauthorized dissemination* means the intentional or negligent transfer of UCNI to any person other than an Authorized Individual or a person granted limited access to UCNI under § 1017.21. *Unclassified Controlled Nuclear Information or UCNI* means certain unclassified Government information concerning nuclear facilities, materials, weapons, and components whose dissemination is controlled under section 148 of the Atomic Energy Act and this part. *Utilization facility* means:

(1)Any equipment or device, or any important component part especially designed for such equipment or device, except for a nuclear weapon, that is capable of making use of special nuclear material in such quantity as to be of significance to the common defense and security or in such manner as to affect the health and safety of the public. For the purposes of this part, such equipment or devices include only Government equipment or devices that use special nuclear material in the research, development, production, or testing of nuclear weapons, nuclear weapon components, or nuclear material capable of being used in nuclear weapons; or

(2)Any equipment or device, or any important component part especially designed for such equipment or device, except for a nuclear weapon, that is peculiarly adapted for making use of nuclear energy in such quantity as to be of significance to the common defense and security or in such manner as to affect the health and safety of the public. For the purposes of this part, such equipment or devices include only:

(i)Naval propulsion reactors;

(ii)Military reactors and power sources that use special nuclear material;

(iii)Tritium production reactors; and,

(iv)Government research reactors. § 1017.5 Requesting a deviation.

(a)Any person may request a deviation, or condition that diverges from the norm and that is categorized as:

(1)A variance (i.e., an approved condition that technically varies from a requirement in these regulations);

(2)A waiver (i.e., an approved nonstandard condition that deviates from a requirement in these regulations and which, if uncompensated, would create a potential or real vulnerability); or

(3)An exception (i.e., an approved deviation from a requirement in these regulations for which DOE accepts the risk of a safeguards and security vulnerability) according to the degree of risk involved.

(b)In writing, the person must:

(1)Identify the specific requirement for which the deviation is being requested;

(2)Explain why the deviation is needed; and,

(3)If appropriate, describe the alternate or equivalent means for meeting the requirement.

(c)DOE employees must submit such requests according to internal directives. DOE contractors must submit such requests according to directives incorporated into their contracts. Other individuals must submit such requests to the Office of Classification, Office of Health, Safety and Security, U.S. Department of Energy, 1000 Independence Ave., SW., Washington, DC 20585-1290. The Office of Classification's decision must be made within 30 days. Subpart B—Initially Determining What Information Is Unclassified Controlled Nuclear Information § 1017.6 Authority. The Secretary, or his or her designee, determines whether information is UCNI. These determinations are incorporated into guidance that each Reviewing Official and Denying Official consults in his or her review of a document or material to decide whether the document or material contains UCNI. § 1017.7 Criteria. To be identified as UCNI, the information must meet each of the following criteria:

(a)The information must be Government information as defined in § 1017.4;

(b)The information must concern atomic energy defense programs as defined in § 1017.4;

(c)The information must fall within the scope of at least one of the three subject areas eligible to be UCNI in § 1017.8;

(d)The information must meet the adverse effect test described in § 1017.10; and

(e)The information must not be exempt from being UCNI under § 1017.11. § 1017.8 Subject areas eligible to be Unclassified Controlled Nuclear Information. To be eligible for identification as UCNI, information must concern at least one of the following categories:

(a)The design of production or utilization facilities as defined in this part;

(b)Security measures (including security plans, procedures, and equipment) for the physical protection of production or utilization facilities or nuclear material, regardless of its physical state or form, contained in these facilities or in transit; or

(c)The design, manufacture, or utilization of nuclear weapons or components that were once classified as Restricted Data, as defined in section 11y. of the Atomic Energy Act. § 1017.9 Nuclear material determinations.

(a)The Secretary may determine that a material other than special nuclear material, byproduct material, or source material as defined by the Atomic Energy Act is included within the scope of the term “nuclear material” if it meets the following criteria:

(1)The material is used in the production, testing, utilization, or assembly of nuclear weapons or components of nuclear weapons; and

(2)Unauthorized acquisition of the material could reasonably be expected to result in a significant adverse effect on the health and safety of the public or the common defense and security because the specific material:

(i)Could be used as a hazardous radioactive environmental contaminant; or

(ii)Could be of significant assistance in the illegal production of a nuclear weapon.

(b)Designation of a material as a nuclear material under paragraph

(a)of this section does not make all information about the material UCNI. Specific information about the material must still meet each of the criteria in § 1017.7 prior to its being identified and controlled as UCNI. § 1017.10 Adverse effect test. In order for information to be identified as UCNI, it must be determined that the unauthorized dissemination of the information under review could reasonably be expected to result in a significant adverse effect on the health and safety of the public or the common defense and security by significantly increasing the likelihood of:

(a)Illegal production of a nuclear weapon; or

(b)Theft, diversion, or sabotage of nuclear material, equipment, or facilities. § 1017.11 Information exempt from being Unclassified Controlled Nuclear Information. Information exempt from this part includes:

(a)Information protected from disclosure under section 147 of the Atomic Energy Act (42 U.S.C. 2167) that is identified as Safeguards Information and controlled by the United States Nuclear Regulatory Commission;

(b)Basic scientific information (i.e., information resulting from research directed toward increasing fundamental scientific knowledge or understanding rather than any practical application of that knowledge);

(c)Radiation exposure data and all other personal health information; and,

(d)Information concerning the transportation of low level radioactive waste. § 1017.12 Prohibitions on identifying Unclassified Controlled Nuclear Information. Information, documents, and material must not be identified as being or containing UCNI in order to:

(a)Conceal violations of law, inefficiency, or administrative error;

(b)Prevent embarrassment to a person or organization;

(c)Restrain competition; or,

(d)Prevent or delay the release of any information that does not properly qualify as UCNI. § 1017.13 Report concerning determinations. The Office of Classification or successor office shall issue a report by the end of each quarter that identifies any new information that has been determined for the first time to be UCNI during the previous quarter, explains how each such determination meets the criteria in § 1017.7, and explains why each such determination protects from disclosure only the minimum amount of information necessary to protect the health and safety of the public or the common defense and security. A copy of the report may be obtained by writing to the Office of Classification, Office of Health, Safety and Security, U.S. Department of Energy, 1000 Independence Ave., SW., Washington, DC 20585-1290. Subpart C—Review of a Document or Material for Unclassified Controlled Nuclear Information § 1017.14 Designated officials.

(a)*Reviewing Official* —(1) *Authority.* A Reviewing Official with cognizance over the information contained in a document or material is authorized to determine whether the document or material contains UCNI based on applicable guidance. A Reviewing Official marks or authorizes the marking of the document or material as specified in § 1017.16.

(2)*Request for designation.* Procedures for requesting that a DOE Federal or contractor employee be designated as a Reviewing Official are contained in Departmental directives issued by the Secretary. DOE may also designate other Government agency employees, contractors, or other individuals granted routine access under § 1017.20 as Reviewing Officials.

(3)*Designation.* Prior to being designated as a Reviewing Official, each employee must receive training approved by DOE that covers the requirements in these regulations and be tested on his or her proficiency in using applicable UCNI guidance. Upon successful completion of the training and test, he or she is designated as a Reviewing Official only while serving in his or her current position for a maximum of 3 years. The employee does not automatically retain the authority when he or she leaves his or her current position. The employee cannot delegate this authority to anyone else, and the authority may not be assumed by another employee acting in the employee's position. At the end of 3 years, if the position still requires the authority, the employee must be retested and redesignated by DOE as a Reviewing Official.

(b)I *ndividuals approved to use DOE or joint DOE classification guidance* —(1) *Authority.* Other Government agency employees who are approved by DOE or another Government agency to use classification guidance developed by DOE or jointly by DOE and another Government agency may also be approved to review documents for UCNI and to make UCNI determinations. This authority is limited to the UCNI subject areas contained in the specific classification guidance that the individual has been approved to use.

(2)*Designation.* Individuals must be designated this authority in writing by the appropriate DOE or other Government agency official with cognizance over the specific DOE or joint DOE classification guidance.

(c)*Denying Official* —(1) *Authority.* A DOE Denying Official for unclassified information with cognizance over the information contained in a document is authorized to deny a request made under statute (e.g., the FOIA, the Privacy Act) or the mandatory review provisions of Executive Order 12958, as amended, “Classified National Security Information,” and its successor orders, for all or any portion of the document that contains UCNI. The Denying Official bases his or her denial on applicable guidance, ensuring that the Reviewing Official who determined that the document contains UCNI correctly interpreted and applied the guidance.

(2)*Designation* . Information on the designation of DOE Denying Officials is contained in 10 CFR Part 1004, *Freedom of Information* (see definition of the term “Authorizing or Denying Official” in § 1004.2). § 1017.15 Review process.

(a)*Reviewing documents for UCNI.* Anyone who originates or possesses a document that he or she thinks may contain UCNI must send the document to a Reviewing Official for a determination before it is finalized, sent outside of his or her organization, or filed. If the originator or possessor must send the document outside of his or her organization for the review, he or she must mark the front of the document with “Protect as UCNI Pending Review” and must transmit the document in accordance with the requirements in § 1017.27. The Reviewing Official must first determine whether the document is widely disseminated in the public domain, which means that the document under review is publicly available from a Government technical information service or depository library, for example, or that it can be found in a public library or an open literature source, or it can be accessed on the Internet using readily available search methods.

(1)If the document is determined to be widely disseminated in the public domain, it cannot be controlled as UCNI. The Reviewing Official returns the document to the person who sent it to the Reviewing Official and informs him or her why the document cannot be controlled as UCNI. This does not preclude control of the same information as UCNI if it is contained in another document that is not widely disseminated.

(2)If the document is not determined to be widely disseminated in the public domain, the Reviewing Official evaluates the information in the document using guidance to determine whether the document contains UCNI. If the Reviewing Official determines that the document does contain UCNI, the Reviewing Official marks or authorizes the marking of the document as specified in § 1017.16. If the Reviewing Official determines that the document does not contain UCNI, the Reviewing Official returns the document to the person who sent it and informs him or her that the document does not contain UCNI. For documentation purposes, the Reviewing Official may mark or authorize the marking of the document as specified in § 1017.17(b).

(3)If no applicable guidance exists, but the Reviewing Official thinks the information should be identified as UCNI, then the Reviewing Official must send the document to the appropriate official identified in applicable DOE directives issued by the Secretary or his or her designee. The Reviewing Official should also include a written recommendation as to why the information should be identified as UCNI.

(b)*Review exemption for documents in files.* Any document that was permanently filed prior to May 22, 1985, is not required to be reviewed for UCNI while in the files or when retrieved from the files for reference, inventory, or similar purposes as long as the document will be returned to the files and is not accessible by individuals who are not Authorized Individuals for the UCNI contained in the document. However, when a document that is likely to contain UCNI is removed from the files for dissemination within or outside of the immediate organization, it must be reviewed by a Reviewing Official with cognizance over the information.

(c)*Reviewing material for UCNI.* Anyone who produces or possesses material that he or she thinks may contain or reveal UCNI must consult with a Reviewing Official for a determination. If the Reviewing Official determines that the material does contain or reveal UCNI, the Reviewing Official marks or authorizes the marking of the material as specified in § 1017.16(b). § 1017.16 Unclassified Controlled Nuclear Information markings on documents or material.

(a)*Marking documents.* If a Reviewing Official determines that a document contains UCNI, the Reviewing Official must mark or authorize the marking of the document as described in this section.

(1)Front marking. The following marking must appear on the front of the document: Unclassified Controlled Nuclear Information Not for Public Dissemination Unauthorized dissemination subject to civil and criminal sanctions under section 148 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2168). Reviewing Official: (Name/Organization) Date: Guidance Used:

(2)Page marking. The marking “Unclassified Controlled Nuclear Information” must be placed on the bottom of the front of the document and on the bottom of each interior page of the document that contains text or if more convenient, on the bottom of only those interior pages that contain UCNI. The page marking must also be placed on the back of the last page. If space limitations do not allow for use of the full page marking, the acronym “UCNI” may be used as the page marking.

(3)Classified documents. UCNI front and page markings are not applied to a classified document that also contains UCNI. If a classified document is portion marked, the acronym “UCNI” is used to indicate those unclassified portions that contain UCNI.

(4)Obsolete “May Contain UCNI” marking. The “May Contain UCNI” marking is no longer used. Any document marked with the “May Contain UCNI” marking is considered to contain UCNI and must be protected accordingly until a Reviewing Official or Denying Official determines otherwise. The obsolete “May Contain UCNI” marking reads as follows: Not for Public Dissemination May contain Unclassified Controlled Nuclear Information subject to section 148 of the Atomic Energy Act of 1954 (42 U.S.C. 2168). Approval by the Department of Energy prior to release is required.

(b)*Marking material.* If possible, material containing or revealing UCNI must be marked as described in § 1017.16(a)(1). If space limitations do not allow for use of the full marking in § 1017.16(a)(1), the acronym “UCNI” may be used. § 1017.17 Determining that a document or material no longer contains or does not contain Unclassified Controlled Nuclear Information.

(a)*Document or material no longer contains UCNI.* A Reviewing Official with cognizance over the information in a document or material marked as containing UCNI may determine that the document or material no longer contains UCNI. A Denying Official may also determine that such a document or material no longer contains UCNI. The official making this determination must base it on applicable guidance and must ensure that any UCNI markings are crossed out (for documents) or removed (for material). The official marks or authorizes the marking of the document (or the material, if space allows) as follows: Does Not Contain Unclassified Controlled Nuclear Information Reviewing/Denying Official: (Name and organization) Date:

(b)*Document or material does not contain UCNI.* A Reviewing Official with cognizance over the information in a document or material may confirm that an unmarked document or material does not contain UCNI based on applicable guidance. No UCNI markings are required in this case; however, for documentation purposes, the Reviewing Official may mark or may authorize the marking of the document or material with the same marking used in § 1017.17(a). § 1017.18 Joint documents or material. If a document or material marked as containing UCNI is under consideration for decontrol and falls under the cognizance of another DOE organization or other Government agency, the Reviewing Official or Denying Official must coordinate the decontrol review with that DOE organization or other Government agency. Any disagreement concerning the control or decontrol of any document or material that contains UCNI that was originated by or for DOE or another Government agency is resolved by the Secretary or his or her designee. Subpart D—Access to Unclassified Controlled Nuclear Information § 1017.19 Access limitations. A person may only have access to UCNI if he or she has been granted routine access by an Authorized Individual (see § 1017.20) or limited access by the DOE Program Secretarial Officer or NNSA Deputy or Associate Administrator with cognizance over the UCNI (see § 1017.21). The Secretary, or his or her designee, may impose additional administrative controls concerning the granting of routine or limited access to UCNI to a person who is not a U.S. citizen. § 1017.20 Routine access.

(a)*Authorized Individual.* The Reviewing Official who determines that a document or material contains UCNI is the initial Authorized Individual for that document or material. An Authorized Individual, for UCNI in his or her possession or control, may determine that another person is an Authorized Individual who may be granted access to the UCNI, subject to limitations in paragraph

(b)of this section, and who may further disseminate the UCNI under the provisions of this section.

(b)*Requirements for routine access.* To be eligible for routine access to UCNI, the person must have a need to know the UCNI in order to perform official duties or other Government-authorized activities and must be:

(1)A U.S. citizen who is:

(i)An employee of any branch of the Federal Government, including the U.S. Armed Forces;

(ii)An employee or representative of a State, local, or Indian tribal government;

(iii)A member of an emergency response organization;

(iv)An employee of a Government contractor or a consultant, including those contractors or consultants who need access to bid on a Government contract;

(v)A member of Congress or a staff member of a congressional committee or of an individual member of Congress;

(vi)A Governor of a State, his or her designated representative, or a State government official;

(vii)A member of a DOE advisory committee; or,

(viii)A member of an entity that has entered into a formal agreement with the Government, such as a Cooperative Research and Development Agreement or similar arrangement; or,

(2)A person who is not a U.S. citizen but who is:

(i)A Federal Government employee or a member of the U.S. Armed Forces;

(ii)An employee of a Federal Government contractor or subcontractor;

(iii)A Federal Government consultant;

(iv)A member of a DOE advisory committee;

(v)A member of an entity that has entered into a formal agreement with the Government, such as a Cooperative Research and Development Agreement or similar arrangement;

(vi)An employee or representative of a State, local, or Indian tribal government; or,

(vii)A member of an emergency response organization when responding to an emergency; or,

(3)A person who is not a U.S. citizen but who needs to know the UCNI in conjunction with an activity approved by the DOE Program Secretarial Officer or NNSA Deputy or Associate Administrator with cognizance over the UCNI. § 1017.21 Limited access.

(a)A person who is not eligible for routine access to specific UCNI under § 1017.20 may request limited access to such UCNI by sending a written request to the DOE Program Secretarial Officer or NNSA Deputy or Associate Administrator with cognizance over the information. The written request must include the following:

(1)The name, current residence or business address, birthplace, birth date, and country of citizenship of the person submitting the request;

(2)A description of the specific UCNI for which limited access is being requested;

(3)A description of the purpose for which the UCNI is needed; and,

(4)Certification by the requester that he or she:

(i)Understands and will follow these regulations; and

(ii)Understands that he or she is subject to the civil and criminal penalties under Subpart F of this part.

(b)The decision whether to grant the request for limited access is based on the following criteria:

(1)The sensitivity of the UCNI for which limited access is being requested;

(2)The approving official's evaluation of the likelihood that the requester will disseminate the UCNI to unauthorized individuals; and,

(3)The approving official's evaluation of the likelihood that the requester will use the UCNI for illegal purposes.

(c)Within 30 days of receipt of the request for limited access, the appropriate DOE Program Secretarial Officer or NNSA Deputy or Associate Administrator must notify the requester if limited access is granted or denied, or if the determination cannot be made within 30 days, of the date when the determination will be made.

(d)A person granted limited access to specific UCNI is not an Authorized Individual and may not further disseminate the UCNI to anyone. Subpart E—Physical Protection Requirements § 1017.22 Notification of protection requirements.

(a)An Authorized Individual who grants routine access to specific UCNI under § 1017.20 to a person who is not an employee or contractor of the DOE must notify the person receiving the UCNI of protection requirements described in this subpart and any limitations on further dissemination.

(b)A DOE Program Secretarial Officer or NNSA Deputy or Associate Administrator who grants limited access to specific UCNI under § 1017.21 must notify the person receiving the UCNI of protection requirements described in this subpart and any limitations on further dissemination. § 1017.23 Protection in use. An Authorized Individual or a person granted limited access to UCNI under § 1017.21 must maintain physical control over any document or material marked as containing UCNI that is in use to prevent unauthorized access to it. § 1017.24 Storage. A document or material marked as containing UCNI must be stored to preclude unauthorized disclosure. When not in use, documents or material containing UCNI must be stored in locked receptacles (e.g., file cabinet, desk drawer), or if in secured areas or facilities, in a manner that would prevent inadvertent access by an unauthorized individual. § 1017.25 Reproduction. A document marked as containing UCNI may be reproduced without the permission of the originator to the minimum extent necessary consistent with the need to carry out official duties, provided the reproduced document is marked and protected in the same manner as the original document. § 1017.26 Destruction. A document marked as containing UCNI must be destroyed, at a minimum, by using a cross-cut shredder that produces particles no larger than 1/4-inch wide and 2 inches long. Other comparable destruction methods may be used. Material containing or revealing UCNI must be destroyed according to agency directives. § 1017.27 Transmission.

(a)Physically transmitting UCNI documents or material.

(1)A document or material marked as containing UCNI may be transmitted by:

(i)U.S. First Class, Express, Certified, or Registered mail;

(ii)Any means approved for transmission of classified documents or material;

(iii)An Authorized Individual or person granted limited access under § 1017.21 as long as physical control of the package is maintained; or,

(iv)Internal mail services.

(2)The document or material must be packaged to conceal the presence of the UCNI from someone who is not authorized access. A single, opaque envelope or wrapping is sufficient for this purpose. The address of the recipient and the sender must be indicated on the outside of the envelope or wrapping along with the words “TO BE OPENED BY ADDRESSEE ONLY.”

(b)Transmitting UCNI documents over telecommunications circuits. Encryption algorithms that comply with all applicable Federal laws, regulations, and standards for the protection of unclassified controlled information must be used when transmitting UCNI over a telecommunications circuit (including the telephone, facsimile, radio, e-mail, Internet). § 1017.28 Processing on Automated Information Systems (AIS). UCNI may be processed or produced on any AIS that complies with the guidance in OMB Circular No. A-130, Revised, Transmittal No. 4, Appendix III, “Security of Federal Automated Information Resources,” or is certified for classified information. Subpart F—Violations § 1017.29 Civil penalty.

(a)*Regulations.* Any person who violates a UCNI security requirement of any of the following is subject to a civil penalty under this part:

(1)10 CFR Part 1017—Identification and Protection of Unclassified Controlled Nuclear Information; or

(2)Any other DOE regulation related to the safeguarding or security of UCNI if the regulation provides that violation of its provisions may result in a civil penalty pursuant to section 148 of the Act.

(b)*Compliance order.* If, without violating a requirement of any regulation issued under section 148, a person by an act or omission causes, or creates a risk of, the loss, compromise or unauthorized disclosure of UCNI, the Secretary may issue a compliance order to that person requiring the person to take corrective action and notifying the person that violation of the compliance order is subject to a notice of violation and assessment of a civil penalty. If a person wishes to contest the compliance order, the person must file a notice of appeal with the Secretary within 15 days of receipt of the compliance order.

(c)*Amount of penalty.* The Director may propose imposition of a civil penalty for violation of a requirement of a regulation under paragraph

(a)of this section or a compliance order issued under paragraph

(b)of this section, not to exceed $100,000 for each violation.

(d)*Settlements.* The Director may enter into a settlement, with or without conditions, of an enforcement proceeding at any time if the settlement is consistent with the objectives of DOE's UCNI protection requirements.

(e)*Enforcement conference.* The Director may convene an informal conference to discuss any situation that might be a violation of the Act, its significance and cause, any correction taken or not taken by the person, any mitigating or aggravating circumstances, and any other useful information. The Director may compel a person to attend the conference. This conference will not normally be open to the public and there shall be no transcript.

(f)*Investigations.* The Director may conduct investigations and inspections relating to the scope, nature and extent of compliance by a person with DOE security requirements specified in these regulations and take such action as the Director deems necessary and appropriate to the conduct of the investigation or inspection, including signing, issuing and serving subpoenas.

(g)*Preliminary notice of violation.*

(1)In order to begin a proceeding to impose a civil penalty under this part, the Director shall notify the person by a written preliminary notice of violation sent by certified mail, return receipt requested, of:

(i)The date, facts, and nature of each act or omission constituting the alleged violation;

(ii)The particular provision of the regulation or compliance order involved in each alleged violation;

(iii)The proposed remedy for each alleged violation, including the amount of any civil penalty proposed;

(iv)The right of the person to submit a written reply to the Director within 30 calendar days of receipt of such preliminary notice of violation; and,

(v)The fact that upon failure of the person to pay any civil penalty imposed, the penalty may be collected by civil action.

(2)A reply to a preliminary notice of violation must contain a statement of all relevant facts pertaining to an alleged violation. The reply must:

(i)State any facts, explanations, and arguments that support a denial of the alleged violation;

(ii)Demonstrate any extenuating circumstances or other reason why a proposed remedy should not be imposed or should be mitigated;

(iii)Discuss the relevant authorities that support the position asserted, including rulings, regulations, interpretations, and previous decisions issued by DOE;

(iv)Furnish full and complete answers to any questions set forth in the preliminary notice; and

(v)Include copies of all relevant documents.

(3)If a person fails to submit a written reply within 30 calendar days of receipt of a preliminary notice of violation:

(i)The person relinquishes any right to appeal any matter in the preliminary notice; and

(ii)The preliminary notice, including any remedies therein, constitutes a final order.

(4)The Director, at the request of a person notified of an alleged violation, may extend for a reasonable period the time for submitting a reply or a hearing request letter.

(h)*Final notice of violation.*

(1)If a person submits a written reply within 30 calendar days of receipt of a preliminary notice of violation, the Director must make a final determination whether the person violated or is continuing to violate an UCNI security requirement.

(2)Based on a determination by the Director that a person has violated or is continuing to violate an UCNI security requirement, the Director may issue to the person a final notice of violation that concisely states the determined violation, the amount of any civil penalty imposed, and further actions necessary by or available to the person. The final notice of violation also must state that the person has the right to submit to the Director, within 30 calendar days of the receipt of the notice, a written request for a hearing under paragraph

(i)of this section.

(3)The Director must send a final notice of violation by certified mail, return receipt requested, within 30 calendar days of the receipt of a reply.

(4)Subject to paragraphs (h)(7) and (h)(8) of this section, the effect of final notice shall be:

(i)If a final notice of violation does not contain a civil penalty, it shall be deemed a final order 15 days after the final notice is issued.

(ii)If a final notice of violation contains a civil penalty, the person must submit to the Director within 30 days after the issuance of the final notice:

(A)A waiver of further proceedings; or

(B)A request for an on-the-record hearing under paragraph

(i)of this section.

(5)If a person waives further proceedings, the final notice of violation shall be deemed a final order enforceable against the person. The person must pay the civil penalty set forth in the notice of violation within 60 days of the filing of waiver unless the Director grants additional time.

(6)If a person files a request for an on-the-record hearing, then the hearing process commences.

(7)The Director may amend the final notice of violation at any time before the time periods specified in paragraphs (h)(4)(i) or (h)(4)(ii) of this section expire. An amendment shall add 15 days to the time period under paragraph (h)(4) of this section.

(8)The Director may withdraw the final notice of violation, or any part thereof, at any time before the time periods specified in paragraphs (h)(4)(i) or (h)(4)(ii) of this section expire.

(i)*Hearing.*

(1)Any person who receives a final notice of violation under paragraph

(h)of this section may request a hearing concerning the allegations contained in the notice. The person must mail or deliver any written request for a hearing to the Director within 30 calendar days of receipt of the final notice of violation.

(2)Upon receipt from a person of a written request for a hearing, the Director shall:

(i)Appoint a Hearing Counsel; and

(ii)Select an administrative law judge appointed under 5 U.S.C. 3105, to serve as Hearing Officer.

(j)*Hearing Counsel.* The Hearing Counsel:

(1)Represents DOE;

(2)Consults with the person or the person's counsel prior to the hearing;

(3)Examines and cross-examines witnesses during the hearing; and

(4)Enters into a settlement of the enforcement proceeding at any time if settlement is consistent with the objectives of the Act and DOE security requirements.

(k)*Hearing Officer.* The Hearing Officer:

(1)Is responsible for the administrative preparations for the hearing;

(2)Convenes the hearing as soon as is reasonable;

(3)Administers oaths and affirmations;

(4)Issues subpoenas, at the request of either party or on the Hearing Officer's motion;

(5)Rules on offers of proof and receives relevant evidence;

(6)Takes depositions or has depositions taken when the ends of justice would be served;

(7)Conducts the hearing in a manner which is fair and impartial;

(8)Holds conferences for the settlement or simplification of the issues by consent of the parties;

(9)Disposes of procedural requests or similar matters;

(10)Requires production of documents; and,

(11)Makes an initial decision under paragraph

(n)of this section.

(l)*Rights of the person at the hearing.* The person may:

(1)Testify or present evidence through witnesses or by documents;

(2)Cross-examine witnesses and rebut records or other physical evidence, except as provided in paragraph (m)(4) of this section;

(3)Be present during the entire hearing, except as provided in paragraph (m)(4) of this section; and

(4)Be accompanied, represented, and advised by counsel of the person's choosing.

(m)*Conduct of the hearing.*

(1)DOE shall make a transcript of the hearing.

(2)Except as provided in paragraph (m)(4) of this section, the Hearing Officer may receive any oral or documentary evidence, but shall exclude irrelevant, immaterial, or unduly repetitious evidence.

(3)Witnesses shall testify under oath and are subject to cross-examination, except as provided in paragraph (m)(4) of this section.

(4)The Hearing Officer must use procedures appropriate to safeguard and prevent unauthorized disclosure of classified information, UCNI, or any other information protected from public disclosure by law or regulation, with minimum impairment of rights and obligations under this part. The UCNI status shall not, however, preclude information from being introduced into evidence. The Hearing Officer may issue such orders as may be necessary to consider such evidence *in camera* including the preparation of a supplemental initial decision to address issues of law or fact that arise out of that portion of the evidence that is protected.

(5)DOE has the burden of going forward with and of proving by a preponderance of the evidence that the violation occurred as set forth in the final notice of violation and that the proposed civil penalty is appropriate. The person to whom the final notice of violation has been addressed shall have the burden of presenting and of going forward with any defense to the allegations set forth in the final notice of violation. Each matter of controversy shall be determined by the Hearing Officer upon a preponderance of the evidence.

(n)*Initial decision.*

(1)The Hearing Officer shall issue an initial decision as soon as practicable after the hearing. The initial decision shall contain findings of fact and conclusions regarding all material issues of law, as well as reasons therefor. If the Hearing Officer determines that a violation has occurred and that a civil penalty is appropriate, the initial decision shall set forth the amount of the civil penalty based on:

(i)The nature, circumstances, extent, and gravity of the violation or violations;

(ii)The violator's ability to pay;

(iii)The effect of the civil penalty on the person's ability to do business;

(iv)Any history of prior violations;

(v)The degree of culpability; and,

(vi)Such other matters as justice may require.

(2)The Hearing Officer shall serve all parties with the initial decision by certified mail, return receipt requested. The initial decision shall include notice that it constitutes a final order of DOE 30 days after the filing of the initial decision unless the Secretary files a Notice of Review. If the Secretary files a Notice of Review, he shall file a final order as soon as practicable after completing his review. The Secretary, at his discretion, may order additional proceedings, remand the matter, or modify the amount of the civil penalty assessed in the initial decision. DOE shall notify the person of the Secretary's action under this paragraph in writing by certified mail, return receipt requested. The person against whom the civil penalty is assessed by the final order shall pay the full amount of the civil penalty assessed in the final order within 30 days unless otherwise agreed by the Director.

(o)*Collection of penalty.*

(1)The Secretary may request the Attorney General to institute a civil action to collect a penalty imposed under this section.

(2)The Attorney General has the exclusive power to uphold, compromise or mitigate, or remit any civil penalty imposed by the Secretary under this section and referred to the Attorney General for collection.

(p)*Direction to NNSA.*

(1)Notwithstanding any other provision of this part, the NNSA Administrator, rather than the Director, signs, issues, serves, or takes the following actions that direct NNSA employees, contractors, subcontractors, or employees of such NNSA contractors or subcontractors:

(i)Subpoenas;

(ii)Orders to compel attendance;

(iii)Disclosures of information or documents obtained during an investigation or inspection;

(iv)Preliminary notices of violation; and,

(v)Final notice of violations.

(2)The Administrator shall act after consideration of the Director's recommendation. If the Administrator disagrees with the Director's recommendation, and the disagreement cannot be resolved by the two officials, the Director may refer the matter to the Deputy Secretary for resolution. § 1017.30 Criminal penalty. Any person who violates section 148 of the Atomic Energy Act or any regulation or order of the Secretary issued under section 148 of the Atomic Energy Act, including these regulations, may be subject to a criminal penalty under section 223 of the Atomic Energy Act (42 U.S.C. 2273). In such case, the Secretary shall refer the matter to the Attorney General for investigation and possible prosecution. [FR Doc. E8-12978 Filed 6-9-08; 8:45 am] BILLING CODE 6450-01-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0135; Directorate Identifier 2007-NM-345-AD; Amendment 39-15551; AD 2008-12-08] RIN 2120-AA64 Airworthiness Directives; Short Brothers Model SD3-60 Airplanes Equipped with an Auxiliary Fuel Tank System Installed in Accordance With Supplemental Type Certificate SA00404AT AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for certain Short Brothers Model SD3-60 airplanes. This AD requires deactivation of auxiliary fuel tank systems installed in accordance with Supplemental Type Certificate SA00404AT. This AD results from fuel tank system review requirements done in accordance with Special Federal Aviation Regulation No. 88 (SFAR 88), which identified potential unsafe conditions. We are issuing this AD to prevent the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. DATES: This AD is effective July 15, 2008. Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov;* or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (telephone 800-647-5527) is the Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Robert Bosak, Aerospace Engineer, Propulsion and Services Branch, ACE-118A, FAA, Atlanta Aircraft Certification Office, One Crown Center, 1895 Phoenix Boulevard, Suite 450, Atlanta, Georgia 30349; telephone

(770)703-6094; fax

(770)703-6097. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking

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

(AD)that would apply to certain Short Brothers Model SD3-60 airplanes. That NPRM was published in the **Federal Register** on February 29, 2008 (73 FR 11070). That NPRM proposed to require deactivation of auxiliary fuel tank systems installed in accordance with Supplemental Type Certificate SA00404AT. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the relevant data and determined that air safety and the public interest require adopting the AD as proposed. Costs of Compliance The following table provides the estimated costs for the 1 U.S.-registered airplane to comply with this AD. Estimated Costs Action Work hours Average labor rate per hour Parts Fleet cost Report 1 $80 None $80 Preparation of tank deactivation procedure 80 80 None 6,400 Physical tank deactivation 30 80 $1,200 3,600 Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866,

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979), and

(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. You can find our regulatory evaluation and the estimated costs of compliance in the AD Docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new AD: **2008-12-08 Short Brothers PLC:** Amendment 39-15551. Docket No. FAA-2008-0135; Directorate Identifier 2007-NM-345-AD. Effective Date

(a)This airworthiness directive

(AD)is July 15, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to Short Brothers Model SD3-60 airplanes, certificated in any category, and equipped with an auxiliary fuel tank system installed in accordance with Atlantic Reconnaissance Supplemental Type Certificate

(STC)SA00404AT. Unsafe Condition

(d)This AD results from fuel tank system review requirements done in accordance with Special Federal Aviation Regulation No. 88 (SFAR 88), which were not conducted by the STC holder, for identification of potential unsafe conditions and corrective actions. We are issuing this AD to prevent the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Report

(f)Within 45 days after the effective date of this AD, submit a report to the Manager, Atlanta Aircraft Certification Office (ACO), FAA. The report must include the information listed in paragraphs (f)(1) and (f)(2) of this AD. Under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ), the Office of Management and Budget

(OMB)has approved the information collection requirements contained in this AD, and assigned OMB Control Number 2120-0056.

(1)The airplane registration and serial number.

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

(g)Before December 16, 2008, deactivate the auxiliary fuel tank system, in accordance with a deactivation procedure approved by the Manager of the Atlanta ACO. Any auxiliary fuel tank system component that remains on the airplane must be secured and must have no effect on the continued operational safety and airworthiness of the airplane. Deactivation may not result in the need for additional Instructions for Continued Airworthiness (ICA). Note 1: Appendix A of this AD provides criteria that must be included in the deactivation procedure. The proposed deactivation procedures should be submitted to the Atlanta ACO as soon as possible to ensure timely review and approval, prior to implementation. Note 2: For technical information, contact Robert Bosak, Aerospace Engineer, Propulsion and Services Branch, ACE-118A, Atlanta ACO, One Crown Center, 1895 Phoenix Boulevard, Suite 450, Atlanta, Georgia 30349; telephone

(770)703-6094; fax

(770)703-6097. Alternative Methods of Compliance (AMOCs) (h)(1) The Manager, Atlanta ACO, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(2)To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Material Incorporated by Reference

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

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

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

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

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

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

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

(5)Revise the weight and balance document, if required, and obtain FAA approval for any changes to the weight and balance document.

(6)Amend the applicable sections of the applicable airplane flight manual

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

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

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

(9)Include with the proposed deactivation procedures any relevant information or additional steps that are deemed necessary by the operator to comply with the deactivation of the auxiliary fuel tank system and return of the airplane to service. Issued in Renton, Washington, on May 30, 2008. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-12732 Filed 6-9-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Parts 535, 536, 537, 538, 539, 540, 541, 542, 545, 560, 585, 586, 587, 588, 593, 594, and 595 International Emergency Economic Powers Act Civil and Criminal Penalties AGENCY: Office of Foreign Assets Control, Treasury. ACTION: Final rule. SUMMARY: The Treasury Department's Office of Foreign Assets Control (“OFAC”) is amending its regulations to reflect amendments to the penalty provisions of the International Emergency Economic Powers Act (“IEEPA”) made by the International Emergency Economic Powers Enhancement Act (the “Act”). DATES: Effective June 10, 2008. FOR FURTHER INFORMATION CONTACT: Assistant Director, Civil Penalties, tel.: 202/622-6140, Assistant Director, Policy, tel.: 202/622-4855, Office of Foreign Assets Control, or Chief Counsel (Foreign Assets Control), tel.: 202/622-2410, Office of the General Counsel, Department of the Treasury (not toll free numbers). SUPPLEMENTARY INFORMATION: Electronic and Facsimile Availability This document and additional information concerning OFAC are available from OFAC's Web site ( *http://www.treas.gov/ofac* ) or via facsimile through a 24-hour fax-on demand service, tel.:

(202)622-0077. Background On October 16, 2007, the President signed the Act into law as Public Law 110-96. Section 2 of the Act amended section 206 of IEEPA (50 U.S.C. 1705) by, among other things, raising the maximum civil penalty to an amount not to exceed the greater of $250,000 or an amount twice the amount of the transaction that is the basis of the violation. The Act also amended IEEPA's provisions relating to the imposition of criminal penalties. Accordingly, OFAC is amending the current IEEPA-based sanctions programs regulations to reflect the revised description of unlawful acts and the revised penalties prescribed by the Act. In particular, the amended regulations cross-reference IEEPA for the maximum civil penalty amount rather than specify such amount in the regulations themselves. OFAC posted an interim policy concerning its implementation of the Act on its Web site on November 28, 2007, and plans shortly to revise its enforcement guidelines, which are also available on its Web site. Executive Order 12866, Administrative Procedure Act, Regulatory Flexibility Act, and Paperwork Reduction Act Because the regulations at issue involve a foreign affairs function, the provisions of Executive Order 12866 and the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity for public participation, and delay in effective date are inapplicable. In addition, OFAC finds that, because the rule merely amends the penalties provisions of certain sanctions regulations to conform with the statutory changes provided in the Act, good cause exists under 5 U.S.C. 553(b)(B) to waive the notice and public participation procedures, as well as under 5 U.S.C. 553(d)(3) to waive the delay in effective date. Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply. List of Subjects 31 CFR Part 535 Administrative practice and procedure, Banks, banking, Currency, Foreign claims, Foreign investments in United States, Iran, Penalties, Reporting and recordkeeping requirements, Securities. 31 CFR Part 536 Administrative practice and procedure, Banks, banking, Drug traffic control, Penalties, Reporting and recordkeeping requirements. 31 CFR Part 537 Administrative practice and procedure, Banks, banking, Burma, Currency, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Securities. 31 CFR Part 538 Administrative practice and procedure, Banks, banking, Currency, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Securities, Sudan. 31 CFR Part 539 Administrative practice and procedure, Arms and munitions, Imports, Penalties, Reporting and recordkeeping requirements. 31 CFR Part 540 Administrative practice and procedure, Nuclear materials, Penalties, Reporting and recordkeeping requirements, Russian Federation, Uranium. 31 CFR Part 541 Administrative practice and procedure, Banks, banking, Blocking of assets, Penalties, Reporting and recordkeeping requirements, Securities, Services, Zimbabwe. 31 CFR Part 542 Administrative practice and procedure, Banks, banking, Blocking of assets, Credit, Penalties, Reporting and recordkeeping requirements, Securities, Services, Syria. 31 CFR Part 545 Administrative practice and procedure, Afghanistan, Banks, banking, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Travel restrictions. 31 CFR Part 560 Administrative practice and procedure, Exports, Humanitarian aid, Imports, Iran, Penalties, Reporting and recordkeeping requirements. 31 CFR Part 585 Administrative practice and procedure, Banks, banking, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Securities, Transportation, United States investments abroad, Yugoslavia. 31 CFR Part 586 Administrative practice and procedure, Banks, banking, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Securities, Transportation, United States investments abroad, Yugoslavia. 31 CFR Part 587 Administrative practice and procedure, Banks, banking, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Securities, United States investments abroad, Yugoslavia. 31 CFR Part 588 Administrative practice and procedure, Banks, banking, Penalties, Reporting and recordkeeping requirements, Securities, Western Balkans. 31 CFR Part 593 Administrative practice and procedure, Banks, Banking, Blocking of assets, Credit, Foreign Trade, Imports, Liberia, Penalties, Reporting and recordkeeping requirements, Securities. 31 CFR Part 594 Administrative practice and procedure, Banks, banking, Penalties, Reporting and recordkeeping requirements, Terrorism. 31 CFR Part 595 Administrative practice and procedure, Banks, banking, Currency, Foreign investments in United States, Penalties, Reporting and recordkeeping requirements, Securities, Terrorism. For the reasons set forth in the preamble, 31 CFR chapter V is amended by amending 31 CFR parts 535, 536, 537, 538, 539, 540, 541, 542, 545, 560, 585, 586, 587, 588, 593, 594, and 595 as follows: PART 535—IRANIAN ASSETS CONTROL REGULATIONS 1. The authority citation for part 535 is revised to read as follows: Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12170, 44 FR 65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099, 3 CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 1980 Comp., p. 253; E.O. 12276, 46 FR 7913, 3 CFR, 1981 Comp., p. 104; E.O. 12279, 46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921, 3 CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 CFR, 1981 Comp., p. 110; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O. 12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR 14111, 3 CFR, 1981 Comp., p. 139. Subpart G—Penalties 2. Section 535.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 535.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 535.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(2)A person who willfully commits, willfully attempts to commit, or willfully conspires to commit, or aids or abets in the commission of a violation of any license, order, regulation, or prohibition shall, upon conviction, be fined not more than $1,000,000, or if a natural person, may be imprisoned for not more than 20 years, or both.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 536—NARCOTICS TRAFFICKING SANCTIONS REGULATIONS 3. The authority citation for part 536 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p. 415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166. Subpart G—Penalties 4. Section 536.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 536.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 536.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 537—BURMESE SANCTIONS REGULATIONS 5. The authority citation for part 537 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 108-61, 117 Stat. 864; Pub. L. 110-96, 121 Stat. 1011; E.O. 13047, 62 FR 28301, 3 CFR, 1997 Comp., p. 202; E.O. 13310, 68 FR 44853, 3 CFR, 2003 Comp., p. 241. Subpart G—Penalties 6. Section 537.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 537.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 537.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)Adjustments to penalty amounts.

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 538—SUDANESE SANCTIONS REGULATIONS 7. The authority citation for part 538 is revised to read as follows: Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114 Stat. 1549; Pub. L. 109-344, 120 Stat. 1869; Pub. L. 110-96, 121 Stat. 1011; E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71 FR 61369, 3 CFR, 2006 Comp., p. 244. Subpart G—Penalties 8. Section 538.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 538.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 538.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 539—WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS 9. The authority citation for part 539 is revised to read as follows: Authority: 3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200. Subpart G—Penalties 10. Section 539.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 539.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 539.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 540—HIGHLY ENRICHED URANIUM

(HEU)AGREEMENT ASSETS CONTROL REGULATIONS 11. The authority citation for part 540 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13159, 65 FR 39279, 3 CFR, 2000 Comp., p. 277. Subpart G—Penalties 12. Section 540.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 540.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 540.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 541—ZIMBABWE SANCTIONS REGULATIONS 13. The authority citation for part 541 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13288, 68 FR 11457, 3 CFR, 2003 Comp., p. 186. Subpart G—Penalties 14. Section 541.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 541.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 541.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 542—SYRIAN SANCTIONS REGULATIONS 15. The authority citation for part 542 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 168. Subpart G—Penalties 16. Section 542.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 542.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 542.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 545—TALIBAN (AFGHANISTAN) SANCTIONS REGULATIONS 17. The authority citation for part 545 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13129, 64 FR 36759, 3 CFR, 1999 Comp., p. 200. Subpart G—Penalties 18. Section 545.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 545.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 545.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 560—IRANIAN TRANSACTIONS REGULATIONS 19. The authority citation for part 560 is revised to read as follows: Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114 Stat. 1549; Pub. L. 110-96, 121 Stat. 1011; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217. Subpart G—Penalties 20. Section 560.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 560.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 560.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 585—FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) AND BOSNIAN SERB-CONTROLLED AREAS OF THE REPUBLIC OF BOSNIA AND HERZEGOVINA SANCTIONS REGULATIONS 21. The authority citation for part 585 is revised to read as follows: Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 49 U.S.C. 40106; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12808, 57 FR 23299, 3 CFR, 1992 Comp., p. 305; E.O. 12810, 57 FR 24347, 3 CFR, 1992 Comp., p. 307; E.O. 12831, 58 FR 5253, 3 CFR, 1993 Comp., p. 576; E.O. 12846, 58 FR 25771, 3 CFR, 1993 Comp., p. 599; E.O. 12934, 59 FR 54117, 3 CFR, 1994 Comp., p. 930; E.O. 13304, 68 FR 32315, 3 CFR, 2003 Comp., p. 229. Subpart G—Penalties 22. Section 585.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 585.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 585.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 586—FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) KOSOVO SANCTIONS REGULATIONS 23. The authority citation for part 586 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13088, 63 FR 32109, 3 CFR, 1998 Comp., p. 191; E.O. 13121, 64 FR 24021, 3 CFR, 1999 Comp., p. 176; E.O. 13192, 66 FR 7379, 3 CFR, 2001 Comp., p. 733; E.O. 13304, 68 FR 32315, 3 CFR, 2003 Comp., p. 229. Subpart G—Penalties 24. Section 586.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 586.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 586.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 587—FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) MILOSEVIC SANCTIONS REGULATIONS 25. The authority citation for part 587 is revised to read as follows: Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13088, 63 FR 32109, 3 CFR, 1998 Comp., p. 191; E.O. 13121, 64 FR 24021, 3 CFR, 1999 Comp., p. 176; E.O. 13192, 66 FR 7379, 3 CFR, 2001 Comp., p. 733; E.O. 13304, 68 FR 32315, 3 CFR, 2003 Comp., p. 229. Subpart G—Penalties 26. Section 587.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 587.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 587.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 588—WESTERN BALKANS STABILIZATION REGULATIONS 27. The authority citation for part 588 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13219, 66 FR 34777, 3 CFR, 2001 Comp., p. 778; E.O. 13304, 68 FR 32315, 3 CFR, 2003 Comp., p. 229. Subpart G—Penalties 28. Section 588.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 588.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 588.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 593—FORMER LIBERIAN REGIME OF CHARLES TAYLOR SANCTIONS REGULATIONS 29. The authority citation for part 593 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13348, 69 FR 44885, 3 CFR, 2004 Comp., p. 189. Subpart G—Penalties 30. Section 593.701 is amended by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 593.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 593.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 594—GLOBAL TERRORISM SANCTIONS REGULATIONS 31. The authority citation for part 594 is revised to read as follows: Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 161. Subpart G—Penalties 32. Section 594.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 594.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 594.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. PART 595—TERRORISM SANCTIONS REGULATIONS 33. The authority citation for part 595 is revised to read as follows: Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 319; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208. Subpart G—Penalties 34. Section 595.701 is amended by removing the second sentence of paragraph

(a)and by revising paragraphs (a)(1), (a)(2), and

(b)to read as follows: § 595.701 Penalties.

(a)* * *

(1)A civil penalty not to exceed the amount set forth in Section 206 of the Act may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under the Act. Note to paragraph (a)(1) of § 595.701. As of June 10, 2008, the Act provides for a maximum civil penalty not to exceed the greater of $250,000 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

(b)*Adjustments to penalty amounts.*

(1)The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2)The criminal penalties provided in the Act are subject to adjustment pursuant to 18 U.S.C. 3571. Dated: May 27, 2008. Adam J. Szubin, Director, Office of Foreign Assets Control. [FR Doc. E8-12385 Filed 6-9-08; 8:45 am] BILLING CODE 4811-42-P 73 112 Tuesday, June 10, 2008 Proposed Rules DEPARTMENT OF HOMELAND SECURITY 6 CFR Part 5 [Docket Number DHS-2008-0053] Privacy Act of 1974: Implementation of Exemptions; Electronic System for Travel Authorization AGENCY: Privacy Office, Office of the Secretary, DHS. ACTION: Notice of proposed rulemaking. SUMMARY: The Department of Homeland Security is amending its regulations to exempt portions of a system of records from certain provisions of the Privacy Act. Specifically, the Department proposes to exempt portions of the Electronic System for Travel Authorization

(ESTA)from one or more provisions of the Privacy Act because of criminal, civil, and administrative enforcement requirements. DATES: In accordance with 5 U.S.C. 552a(e)(4) and (11), the public is given a 30-day period in which to comment on this notice; and the Office of Management and Budget (OMB), which has oversight responsibility under the Act, requires a 40-day period in which to conclude its review of the system. Therefore, the public, OMB, and Congress are invited to submit comments July 21, 2008. ADDRESSES: You may submit comments, identified by DOCKET NUMBER DHS-2008-0053 by one of the following methods: • *Federal e-Rulemaking Portal: http://www.regulations.gov.* Follow the instructions for submitting comments. • *Fax:* 1-866-466-5370. • *Mail:* Hugo Teufel III, Chief Privacy Officer, Privacy Office, Department of Homeland Security, Washington, DC 20528. FOR FURTHER INFORMATION CONTACT: For general questions please contact: Laurence E. Castelli (202-572-8790), Chief, Privacy Act Policy and Procedures Branch, U.S. Customs and Border Protection, Regulations and Rulings, Office of International Trade, Mint Annex, 1300 Pennsylvania Ave., NW., Washington, DC 20229. For privacy issues please contact: Hugo Teufel III (703-235-0780), Chief Privacy Officer, Privacy Office, U.S. Department of Homeland Security, Washington, DC 20528. SUPPLEMENTARY INFORMATION: Background The Department of Homeland Security (DHS), elsewhere in this edition of the **Federal Register** , published a Privacy Act system of records notice describing records in the Electronic System Travel Authorization (ESTA). CBP currently does not require a visa for qualifying nationals traveling from countries that participate in the Visa Waiver Program (VWP). To ensure the VWP national does not pose a security risk or have a law enforcement reason to prevent his or her travel to the United States and in response to a Congressional mandate to do so, DHS/CBP will be implementing an Electronic System for Travel Authorization

(ESTA)to permit nationals of VWP countries to electronically submit biographic and admissibility information in advance of their travel to the United States so that CBP can determine whether the applicant is eligible to travel to the United States. Applicants under this program will electronically provide information, as specified in the ESTA Interim Final Rule, prior to traveling to the United States by air or sea, which will be stored in the ESTA system in an account. The individual will have the opportunity to verify the accuracy of the information entered in ESTA during the application process and before the application is submitted through ESTA. Applicants will be given a tracking number which, combined with some personal information already provided to the system, will allow the applicant to submit updates to data elements that do not affect their admissibility or apply for a new ESTA. Once an applicant has verified the application information and submitted the required information to ESTA, the information supplied by the applicant will be used to automatically query terrorist and law enforcement databases to determine whether the applicant is eligible to travel to the United States under VWP. When possible matches to derogatory information are found, the applications will be vetted through normal CBP procedures. During this time, the applicant will receive a “pending” status. If the applicant is cleared to travel under the VWP, he or she will receive an “authorized to travel” status via the ESTA Web site. If the applicant is not cleared for travel, the applicant will receive a “not authorized to travel” status and be directed to the State Department Web site to obtain information on how to apply for a visa at a U.S. consulate or embassy. The Department of State will have access to the information supplied by the applicant and the ESTA results to assist in determining whether to issue a visa. Carriers, when querying the applicant through the Advance Passenger Information System/APIS Quick Query (APIS/AQQ) to determine whether a boarding pass should be issued, will be notified whether the applicant traveler has been authorized to travel, pending, not authorized, or has not applied for an ESTA. VWP travelers must have an authorized ESTA or a visa to be issued a boarding pass. No exemption shall be asserted with respect to information maintained in the system as it relates to data submitted by or on behalf of a person who travels to visit the United States, nor shall an exemption be asserted with respect to the resulting determination (authorized to travel, not authorized to travel, pending). This system may contain records or information pertaining to the accounting of disclosures made from ESTA to other law enforcement agencies (Federal, State, Local, Foreign, International or Tribal) in accordance with the published routine uses. For the accounting of these disclosures only, in accordance with 5 U.S.C. 552a (j)(2), and (k)(2), DHS will claim the original exemptions for these records or information from subsection (c)(3),

(e)(8), and

(g)of the Privacy Act of 1974, as amended, as necessary and appropriate to protect such information. Moreover, DHS will add this exemption to Appendix C to 6 CFR Part 5, DHS Systems of Records Exempt from the Privacy Act. Such exempt records or information may be law enforcement or national security investigation records, law enforcement activity and encounter records, or terrorist screening records. DHS needs these exemptions in order to protect information relating to law enforcement investigations from disclosure to subjects of investigations and others who could interfere with investigatory and law enforcement activities. Specifically, the exemptions are required to: Preclude subjects of investigations from frustrating the investigative process; avoid disclosure of investigative techniques; protect the identities and physical safety of confidential informants and of law enforcement personnel; ensure DHS's and other federal agencies' ability to obtain information from third parties and other sources; protect the privacy of third parties; and safeguard sensitive information. Nonetheless, DHS will examine each request on a case-by-case basis, and, after conferring with the appropriate component or agency, may waive applicable exemptions in appropriate circumstances and where it would not appear to interfere with or adversely affect the law enforcement or national security investigation. Again, DHS will not assert any exemption with respect to information maintained in the system that is collected from a person and submitted by that person's air or vessel carrier, if that person, or his or her agent, seeks access or amendment of such information. Regulatory Requirements A. Regulatory Impact Analyses Changes to Federal regulations must undergo several analyses. In conducting these analyses, DHS has determined: 1. Executive Order 12866 Assessment This rule is not a significant regulatory action under Executive Order 12866, “Regulatory Planning and Review” (as amended). Accordingly, this rule has not been reviewed by the Office of Management and Budget (OMB). Nevertheless, DHS has reviewed this rulemaking, and concluded that there will not be any significant economic impact. 2. Regulatory Flexibility Act Assessment Pursuant to section 605 of the Regulatory Flexibility Act (RFA), 5 U.S.C. 605(b), as amended by the Small Business Regulatory Enforcement and Fairness Act of 1996 (SBREFA), DHS certifies that this rule will not have a significant impact on a substantial number of small entities. The rule would impose no duties or obligations on small entities. Further, the exemptions to the Privacy Act apply to individuals, and individuals are not covered entities under the RFA. 3. International Trade Impact Assessment This rulemaking will not constitute a barrier to international trade. The exemptions relate to criminal investigations and agency documentation and, therefore, do not create any new costs or barriers to trade. 4. Unfunded Mandates Assessment Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), (Pub. L. 104-4, 109 Stat. 48), requires Federal agencies to assess the effects of certain regulatory actions on State, local, and tribal governments, and the private sector. This rulemaking will not impose an unfunded mandate on State, local, or tribal governments, or on the private sector. B. Paperwork Reduction Act The Paperwork Reduction Act of 1995

(PRA)(44 U.S.C. 3501 *et seq.* ) requires that DHS consider the impact of paperwork and other information collection burdens imposed on the public and, under the provisions of PRA section 3507(d), obtain approval from the Office of Management and Budget

(OMB)for each collection of information it conducts, sponsors, or requires through regulations. DHS has determined that there are no current or new information collection requirements associated with this rule. C. Executive Order 13132, Federalism This action will not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government, and therefore will not have federalism implications. D. Environmental Analysis DHS has reviewed this action for purposes of the National Environmental Policy Act of 1969

(NEPA)(42 U.S.C. 4321-4347) and has determined that this action will not have a significant effect on the human environment. E. Energy Impact The energy impact of this action has been assessed in accordance with the Energy Policy and Conservation Act

(EPCA)Public Law 94-163, as amended (42 U.S.C. 6362). This rulemaking is not a major regulatory action under the provisions of the EPCA. List of Subjects in 6 CFR Part 5 Freedom of information, Privacy. For the reasons stated in the preamble, DHS proposes to amend Chapter I of Title 6, Code of Federal Regulations, as follows: PART 5—DISCLOSURE OF RECORDS AND INFORMATION 1. The authority citation for part 5 continues to read as follows: Authority: Public Law 107-296, 116 Stat. 2135, 6 U.S.C. 101 *et seq.* ; 5 U.S.C. 301. Subpart A also issued under 5 U.S.C. 552. 2. At the end of Appendix C to part 5, add the following new paragraph: Appendix C to Part 5—DHS Systems of Records Exempt From the Privacy Act 6. DHS/CBP-009, Electronic System for Travel Authorization (ESTA). A portion of the following system of records is exempt from 5 U.S.C. 552a(c)(3), (e)(8), and

(g)pursuant to 5 U.S.C. 552a(j)(2),and (k)(2). Further, no exemption shall be asserted with respect to information maintained in the system as it relates to data submitted by or on behalf of a person who travels to visit the United States and crosses the border, nor shall an exemption be asserted with respect to the resulting determination (approval or denial). After conferring with the appropriate component or agency, DHS may waive applicable exemptions in appropriate circumstances and where it would not appear to interfere with or adversely affect the law enforcement purposes of the systems from which the information is recompiled or in which it is contained. *Exemptions from the above particular subsections are justified, on a case-by-case basis to be determined at the time a request is made, when information in this system of records may impede a law enforcement or national security investigation:*

(a)From subsection (c)(3) (Accounting for Disclosure) because making available to a record subject the accounting of disclosures from records concerning him or her would specifically reveal any investigative interest in the individual. Revealing this information could reasonably be expected to compromise ongoing efforts to investigate a violation of U.S. law, including investigations of a known or suspected terrorist, by notifying the record subject that he or she is under investigation. This information could also permit the record subject to take measures to impede the investigation, *e.g.* , destroy evidence, intimidate potential witnesses, or flee the area to avoid or impede the investigation.

(b)From subsection (e)(8) (Notice on Individuals) because to require individual notice of disclosure of information due to compulsory legal process would pose an impossible administrative burden on DHS and other agencies and could alert the subjects of counterterrorism or law enforcement investigations to the fact of those investigations when not previously known.

(c)From subsection

(g)(Civil Remedies) to the extent that the system is exempt from other specific subsections of the Privacy Act. Hugo Teufel, III, Chief Privacy Officer, Department of Homeland Security. [FR Doc. E8-12785 Filed 6-9-08; 8:45 am] BILLING CODE 4410-10-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0636; Directorate Identifier 2007-NM-324-AD] RIN 2120-AA64 Airworthiness Directives; ATR Model ATR42-200, -300, and -320 Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). SUMMARY: We propose to adopt a new airworthiness directive

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

(MCAI)originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: One ATR 42-300 experienced a collapse of the Right

(RH)Main Landing Gear

(MLG)when taxiing, caused by failure of the side brace assembly. Investigations revealed a crack propagation that occurred from a corrosion pit, in a very high stressed area of the upper arm. * * * The unsafe condition is cracking of the upper arms of the secondary side brace assemblies of the MLG, which could result in collapse of the MLG during takeoff or landing, damage to the airplane, and possible injury to the flightcrew and passengers. The proposed AD would require actions that are intended to address the unsafe condition described in the MCAI. DATES: We must receive comments on this proposed AD by July 10, 2008. ADDRESSES: You may send comments by any of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov* . Follow the instructions for submitting comments. • *Fax:*

(202)493-2251. • *Mail:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. • *Hand Delivery:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-40, 1200 New Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov* ; or in person at the Docket Operations office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations office (telephone

(800)647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Tom Rodriguez, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1137; fax

(425)227-1149. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the ADDRESSES section. Include “Docket No. FAA-2008-0636; Directorate Identifier 2007-NM-324-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD based on those comments. We will post all comments we receive, without change, to *http://www.regulations.gov* , including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD. Discussion The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Community, has issued EASA Airworthiness Directive 2007-0263, dated October 3, 2007 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states: ONE ATR 42-300 experienced a collapse of the Right

(RH)Main Landing Gear

(MLG)when taxiing, caused by failure of the side brace assembly. Investigations revealed a crack propagation that occurred from a corrosion pit, in a very high stressed area of the upper arm. Dimensions of the corrosion pit were lower than the minimum defect size that can be detected by usual inspection means used during landing gear overhaul. The superseded EASA (European Aviation Safety Agency) Airworthiness Directive

(AD)2007-0112 was issued to require repetitive inspections on affected high stressed areas on MLG side brace assemblies for crack detection and to replace the affected side brace assembly if any defect was found. Since the issuance of [EASA] AD 2007-0112, a modification of [the] side brace upper arm has been developed as terminating action. However, production non-conformity of the inspection tool was discovered. In order to correct the discrepancy of the initial tool, new inspection tool components have been manufactured and the Service Bulletin

(SB)Messier Dowty 631-32-191 has been updated to revision 2 accordingly. This directive mandates re-inspection of MLG side brace assemblies previously inspected in accordance with revision 1 of the Messier Dowty SB 631-32-191 and reduces the inspection interval initially proposed in [EASA] AD 2007-0112 in order to maintain the same level of confidence. The unsafe condition is cracking of the upper arms of the secondary side brace assemblies of the MLG, which could result in collapse of the MLG during takeoff or landing, damage to the airplane, and possible injury to the flightcrew and passengers. You may obtain further information by examining the MCAI in the AD docket. Relevant Service Information Messier-Dowty has issued Special Inspection Service Bulletin 631-32-191, Revision 2, dated August 30, 2007, and Service Bulletin 631-32-194, dated June 6, 2007. ATR has issued Service Bulletin ATR42-32-0092, dated June 25, 2007. ATR has also issued Technical Instruction ATR42-07-01, dated February 5, 2007. The actions described in this service information are intended to correct the unsafe condition identified in the MCAI. FAA's Determination and Requirements of This Proposed AD This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all pertinent information and determined an unsafe condition exists and is likely to exist or develop on other products of the same type design. Differences Between This AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have proposed different actions in this AD from those in the MCAI in order to follow FAA policies. Any such differences are highlighted in a NOTE within the proposed AD. Costs of Compliance Based on the service information, we estimate that this proposed AD would affect about 31 products of U.S. registry. We also estimate that it would take about 35 work-hours per product to comply with the basic requirements of this proposed AD. The average labor rate is $80 per work-hour. Required parts would cost about $0 per product. Based on these figures, we estimate the cost of the proposed AD on U.S. operators to be $86,800, or $2,800 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this proposed regulation: 1. Is not a “significant regulatory action” under Executive Order 12866; 2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and 3. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this proposed AD and placed it in the AD docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. The Proposed Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new AD: ** ATR—GIE Avions de Transport Re gional (Formerly Aerospatiale): ** Docket No. FAA-2008-0636; Directorate Identifier 2007-NM-324-AD. Comments Due Date

(a)We must receive comments by July 10, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to ATR Model ATR42-200, -300, and -320 airplanes, certificated in any category; excluding airplanes on which ATR Modification 8463 has been done. Subject

(d)Air Transport Association

(ATA)of America Code 32: Landing gear. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: One ATR 42-300 experienced a collapse of the Right

(RH)Main Landing Gear

(MLG)when taxiing, caused by failure of the side brace assembly. Investigations revealed a crack propagation that occurred from a corrosion pit, in a very high stressed area of the upper arm. Dimensions of the corrosion pit were lower than the minimum defect size that can be detected by usual inspection means used during landing gear overhaul. The superseded EASA (European Aviation Safety Agency) Airworthiness Directive

(f)For MLG side brace assemblies with part number (P/N) D22710000, without suffix “-9”: Unless already done, do the following actions.

(1)For airplanes on which the MLG side brace assemblies have not been inspected as of the effective date of this AD, in accordance with the Accomplishment Instructions of Messier-Dowty Service Bulletin 631-32-191, Revision 1, dated February 26, 2007: Perform the initial eddy current inspection for cracking of the MLG side brace, in accordance with the Accomplishment Instructions of Messier-Dowty Special Inspection Service Bulletin 631-32-191, Revision 2, dated August 30, 2007, at the applicable time specified in Table 1 of this AD. Unless otherwise specified, the flight cycles and times indicated in Table 1 of this AD must be interpreted as total flight cycles since overhaul, or time since overhaul, and as total flight cycles since new or time since manufacture for side brace assemblies that have not undergone any overhaul yet. Table 1.—Compliance Times For a MLG side brace assembly with the total flight cycles since new or total flight cycles since overhaul specified below as of the effective date of this AD— Do the initial inspection at the time specified below— More than 8,000 flight cycles Within 500 flight cycles after the effective date of this AD. 5,000 or more total flight cycles, but not more than 8,000 total flight cycles Within 1,000 flight cycles after the effective date of this AD or before accumulating 8,500 flight cycles, whichever occurs first. Less than 5,000 flight cycles Within 2,000 flight cycles after the effective date of this AD or before accumulating 6,000 flight cycles, whichever occurs first.

(2)For airplanes on which the MLG side brace assemblies have been inspected as of the effective date of this AD, in accordance with the Accomplishment Instructions of Messier-Dowty Service Bulletin 631-32-191, Revision 1, dated February 26, 2007: Within 1,000 flight cycles after the last inspection or within 200 flight cycles after the effective date of this AD, whichever occurs later, perform an eddy current inspection for cracking of the MLG side brace, in accordance with the Accomplishment Instructions of Messier-Dowty Special Inspection Service Bulletin 631-32-191, Revision 2, dated August 30, 2007.

(3)After accomplishment of the inspection required by paragraph (f)(1) or (f)(2) of this AD, repeat the inspection at intervals not to exceed 2,600 flight cycles in accordance with the Accomplishment Instructions of Messier-Dowty Special Inspection Service Bulletin 631-32-191, Revision 2, dated August 30, 2007.

(4)If any crack is found during any inspection required by paragraphs (f)(1), (f)(2) and (f)(3) of this AD, before further flight, replace the affected side brace in accordance with the Accomplishment Instructions of Messier-Dowty Special Inspection Service Bulletin 631-32-191, Revision 2, dated August 30, 2007.

(5)At the applicable time specified in paragraph (f)(5)(i) or (f)(5)(ii) of this AD: Inspect for cracking, corrosion, and defects of the MLG side brace assemblies with P/N D22710000, without suffix “-9”, in accordance with the Accomplishment Instructions of Messier Dowty Service Bulletin 631-32-194, dated June 6, 2007.

(i)For airplanes having side brace assemblies on which Messier-Bugatti Service Bulletin 631-32-072 has not been incorporated: Before accumulating 16,000 total flight cycles or within 8 years after the effective date of this AD, whichever occurs first.

(ii)For airplanes having side brace assemblies on which Messier-Bugatti Service Bulletin 631-32-072 has been incorporated: Before accumulating 19,000 total flight cycles or within 8 years after the effective date of this AD, whichever occurs first.

(6)If no cracking, corrosion, or defect is found during any inspection required by paragraph (f)(5) of this AD, before further flight, modify and re-identify (by adding a suffix “-9” to P/N D22710000) the MLG side brace assemblies in accordance with the Accomplishment Instructions of ATR Service Bulletin ATR42-32-0092, dated June 25, 2007.

(7)If any cracking, corrosion, or defect is found during any inspection required by paragraph (f)(5) of this AD, before further flight, replace the discrepant MLG side brace assembly with a modified and re-identified MLG side brace assembly in accordance with the Accomplishment Instructions of ATR Service Bulletin ATR42-32-0092, dated June 25, 2007. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows: Although the MCAI or service information allows further flight if a crack is found during compliance with the required inspections, this AD requires that you repair the crack before further flight. Other FAA AD Provisions

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

(1)*Alternative Methods of Compliance (AMOCs):* The Manager, International Branch, ANM-116, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Tom Rodriguez, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1137; fax

(425)227-1149. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO.

(2)*Airworthy Product:* For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.

(3)*Reporting Requirements:* For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act, the Office of Management and Budget

(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information

(h)Refer to MCAI EASA Airworthiness Directive 2007-0263, dated October 3, 2007, and the service information specified in Table 2 of this AD, for related information. Table 2.—Service Information Service Bulletin Revision Date ATR Service Bulletin ATR 42-32-0092 Original June 25, 2007. ATR Technical Instruction ATR 42 ATR 42-07-01 Original February 5, 2007. Messier-Dowty Service Bulletin 631-32-194 Original June 6, 2007. Messier-Dowty Special Inspection Service Bulletin 631-32-191 2 August 30, 2007. Issued in Renton, Washington, on June 3, 2008. Michael J. Kaszycki, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-12934 Filed 6-9-08; 8:45 am] BILLING CODE 4910-13-P FEDERAL TRADE COMMISSION 16 CFR Part 260 Guides for the Use of Environmental Marketing Claims; Green Building and Textiles; Public Workshop AGENCY: Federal Trade Commission. ACTION: Announcement of public workshop; request for public comment. SUMMARY: The Federal Trade Commission (“FTC” or “Commission”) is planning to host a public workshop on July 15, 2008, to examine developments in green building and textile claims and consumer perception of such claims. The workshop is a component of the Commission’s regulatory review of the Guides for the Use of Environmental Marketing Claims, announced on November 26, 2007. DATES: The workshop will be held on Tuesday, July 15, 2008, from 9:00 AM to 5:00 PM at the FTC’s Satellite Building Conference Center, located at 601 New Jersey Avenue, N.W., Washington, D.C. Any written comments in response to this Notice must be received by August 15, 2008. REGISTRATION INFORMATION: The workshop is open to the public, and there is no fee for attendance. The FTC also plans to make this workshop available via webcast, *see* ( *http://www.ftc.gov/bcp/workshops/buildingandtextiles/index.shtml* ). For admittance to the Conference Center, all attendees will be required to show a valid photo identification such as a driver’s license. The FTC will accept pre-registration for this workshop. Pre-registration is not necessary to attend, but is encouraged so that we may better plan this event. To pre-register, please email your name and affiliation to *buildingandtextilesworkshop@ftc.gov* . When you pre-register, we will collect your name, affiliation, and your email address. This information will be used to estimate how many people will attend. We may use your email address to contact you with information about the workshop. Under the Freedom of Information Act (“FOIA”) or other laws, we may be required to disclose to outside organizations the information you provide. For additional information, including routine uses permitted by the Privacy Act, see the Commission’s Privacy Policy at ( *www.ftc.gov/ftc/privacy.htm.* ) The FTC Act and other laws the Commission administers permit the collection of this contact information to consider and use for the above purposes. WRITTEN AND ELECTRONIC COMMENTS: The submission of comments is not required for attendance at the workshop. If you wish to submit written or electronic comments to inform discussion at the workshop, such comments must be received by July 1, 2008. All comments in response to this Notice must be submitted no later than August 15, 2008. Comments should refer to “Green Building and Textiles Workshop—Comment, Project No. P084203” to facilitate 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 H-135 (Annex B), 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). 1 The FTC is requesting that any comment filed in paper form be sent by courier or overnight service, if possible, because postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. 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). Comments filed in electronic form should be submitted by following the instructions on the web-based form at ( *https://secure.commentworks.com/ftc-buildingandtextilesworkshop.* ) To ensure that the Commission considers an electronic comment, you must file it on that web-based form. You also may visit *http://www.regulations.gov* to read this notice, and may file an electronic comment through that website. The Commission will consider all comments that *www.regulations.gov* forwards to it. The FTC Act and other laws the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives, whether filed in paper or electronic form. Comments received will be available to the public on the FTC website, to the extent practicable, at *http://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. To read our policy on how we handle the information you submit—including routine uses permitted by the Privacy Act—please review the FTC’s privacy policy, at ( *http://www.ftc.gov/ftc/privacy.shtm.* ) FOR FURTHER INFORMATION CONTACT: Robin Rosen Spector, Attorney, 202-326-3740 or Janice Podoll Frankle, Attorney, 202-326-2022, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission. SUPPLEMENTARY INFORMATION: I. Introduction FTC staff is planning to conduct a one-day workshop on July 15, 2008, addressing environmental advertising claims regarding building and textiles. The workshop will explore environmental or “green” building and textile claims, consumer perception of those claims, and substantiation issues. The workshop is one component of the Commission’s regulatory review of the Guides for the Use of Environmental Marketing Claims (“Green Guides” or “Guides”), 16 CFR Part 260, which the FTC announced on November 26, 2007. 2 2 The **Federal Register** Notice announcing this review is at 72 FR 66091 (Nov. 27, 2007), and can be found at ( *http://www.ftc.gov/os/2007/11/P954501ggfrn.pdf* ). The Commission reviews all of its rules and guides periodically. These reviews seek information about the costs and benefits of the Commission’s existing rules and guides and their regulatory and economic impact. The information obtained during these reviews assists the Commission in identifying rules and guides that warrant modification or rescission. This Notice provides background on the Green Guides and the Green Guides regulatory review; briefly discusses consumer protection issues raised by green building and textile claims; and includes questions for comment. II. Background Information This **Federal Register** Notice is part of the FTC’s standard regulatory review of the Green Guides. The following section provides background information on the Green Guides and the Commission’s Green Guides regulatory review process. A. The Green Guides The Commission issued the Green Guides to help marketers avoid making unfair or deceptive environmental claims. 3 Industry guides, such as these, are administrative interpretations of the law. Therefore, they do not have the force and effect of law and are not independently enforceable. The Commission can take action under Section 5 of the FTC Act, however, if a business makes environmental marketing claims inconsistent with the Guides. In any such enforcement action, the Commission must prove that the act or practice at issue is unfair or deceptive. 3 The Commission issued the Green Guides in 1992 (57 FR 36363), and subsequently revised them in 1996 (61 FR 53311), and in 1998 (63 FR 24240). The current Green Guides are available at *http://www.ftc.gov/bcp/grnrule/guides980427.htm* . The Green Guides outline general principles that apply to all environmental marketing claims. The Guides provide that all marketers making express or implied claims about the environmental attributes of their product or service must have a reasonable basis for their claims at the time they make them. They describe the basic elements necessary to substantiate environmental marketing claims and present options for qualifying specific claims to avoid deception. 4 The provisions focus on the way in which consumers understand environmental claims and not necessarily the technical or scientific definition of various terms. The Guides advise marketers to: make qualifications and disclosures needed to prevent deception clearly so that consumers read and understand them; not overstate an environmental attribute or benefit, expressly or by implication; and present comparative claims in a manner that makes the basis for the comparison sufficiently clear to avoid consumer deception. 4 The Guides do not, however, establish standards for environmental performance or prescribe testing protocols. In the realm of environmental advertising, a reasonable basis often requires competent and reliable scientific evidence. Such evidence includes tests, research, studies, or other evidence, based on the expertise of professionals in the relevant area, that have been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results. The Guides then specifically address general environmental benefit claims, such as “environmentally friendly,” “environmentally preferable,” “Eco-safe,” and more specific claims. The specific claims the Guides address include: degradable, compostable, recyclable, recycled content, source reduction, refillable, and ozone-safe/ozone-friendly claims. For each, the Guides explain how reasonable consumers are likely to interpret the claim and describe the basic elements necessary to substantiate the claim. Additionally, they present options for qualifying specific claims to avoid deception. These illustrative examples provide “safe harbors” for marketers seeking certainty about how to make environmental claims, but do not represent the only permissible approaches to qualifying a claim. The illustrative examples currently do not address textile or building products; thus, the questions for comment, below, ask whether the Guides should be revised to include examples regarding these products. B. Green Guides Regulatory Review On November 27, 2007, the FTC published a **Federal Register** Notice commencing the decennial regulatory review of the FTC’s Green Guides. 5 The Notice solicited public comments in response to questions about the Guides’ costs, benefits, and effectiveness and posed claim-specific questions. The Notice announced that the FTC would be hosting public meetings to facilitate dialogue on specific issues relating to the Green Guides review. The Commission will review and consider information gathered at these meetings, in addition to the public comments, in formulating its final determination. 5 72 FR 66091 (Nov. 27, 2007). On January 8, 2008, the Commission conducted its first public meeting relating to the Green Guides review, a workshop on “Carbon Offsets and Renewable Energy Certificates.” 6 The Commission held its second public meeting, a workshop on “The Green Guides and Packaging,” on April 30, 2008. 7 The meeting announced through this **Federal Register** Notice, entitled “Green Building and Textiles,” will be the third in the series. A public meeting addressing green claims for building and textiles will enable participants and the Commission to focus in-depth on two areas in which a wide range of green claims are becoming more prevalent. 6 The Commission’s **Federal Register** Notice announcing its first public workshop relating to carbon offsets and renewable energy certificates is at 72 FR 66094 (Nov. 27, 2007). 7 The Commission’s **Federal Register** Notice announcing its second public workshop relating to green packaging claims is at 73 FR 11371 (Mar. 3, 2008). III. Green Claims for Building and Textiles and Consumer Protection Issues Since the Commission last revised the Green Guides in 1998, there has been a significant increase in environmental claims concerning textiles, building products, and construction. In the textile market, we have seen a marked increase in advertisements for green textiles, such as organic cotton, bamboo fiber clothing, and bedding materials. In the building market, green claims are prevalent for a wide range of building products including flooring, carpeting, paint, wallpaper, lighting, insulation, and windows. In addition, builders are making claims that the homes they build are green. These green building claims often are based upon third-party certification programs, which have grown substantially since the last revision of the Guides. The nature of these textile and building product claims, consumer understanding of the claims, and the marketers’ substantiation of these claims all raise consumer protection issues that we plan to explore at the workshop. Below, we discuss the environmental marketing in the textile and building products markets and the consumer protection issues these claims raise. A. Green Claims for Textile Products The market for green textiles, both clothing and bedding products, is burgeoning. A 2007 fashion white paper reported that consumer demand for organic cotton clothing had grown by 300%, and the number of clothing brands made with organic materials had increased by 150% over a three year period. 8 Claims in this market often relate to the cultivation of a particular fiber. For example, some retailers tout their products as more “environmentally friendly” because they are made from “organic cotton.” 9 These green claims may appeal to consumers in part because of data indicating that conventionally grown cotton consumes approximately 25 percent of the insecticides and more than 10 percent of the pesticides used in the world. 10 8 Diane von Furstenberg, *Preface* to Earth Pledge’s *Future Fashion White Papers* , at x (1st ed. 2007). 9 The U.S. Department of Agriculture through its National Organic Program (“NOP”) has requirements for labeling products as organic and containing organic ingredients. Organic cotton cannot be marketed in the U.S. unless it meets the NOP standards. 10 *http://www.aboutorganiccotton.org/woven-world.html.* In addition to making environmental claims for textiles made from organic cotton, marketers also are making eco-fabric and “natural” claims for products derived from such plants as hemp and bamboo. Certain marketers claim that bamboo is one of the world’s most sustainable resources because unlike trees, which can take up to 25 years to mature, bamboo is ready to harvest after four years. 11 Also, marketers assert that compared with conventional cotton plants, which require large amounts of pesticides and fertilizers, bamboo cultivation requires neither pesticides nor fertilizer. 12 11 Rich Delano, *The Lowdown on Bamboo* , in Earth Pledge’s *Future Fashion White Papers* at 160-161 (1st ed. 2007). 12 *Id.* at 161. Marketers’ assertions about the environmental benefits of textile products raise issues regarding consumer perception of, and substantiation for, such claims. It is unclear how consumers perceive claims regarding the environmental benefits of textile products, such as organic cotton and bamboo, and the type of substantiation necessary to support such claims. For example, consumers could believe that claims that textiles made from bamboo are “sustainable,” “renewable,” or “natural” 13 relate both to the material used—bamboo—and the production process. Substantiating claims that textiles made from bamboo are produced in an environmentally friendly manner may pose challenges for marketers. Bamboo fibers, which are naturally tough, are often softened through intense chemical treatment prior to weaving. These chemical treatments may contribute to pollution. We plan to explore these kinds of issues at the workshop. 13 The Green Guides do not address these terms. B. Green Claims for Building Products and Buildings The market for green homes and products is growing. A 2007 study found that the market for green homes is expected to rise from $2 billion to $20 billion over five years. 14 This study also found that 40% of homeowners choose green products to remodel their homes. In response, today’s market offers a myriad of green choices, including paint, carpeting, wallpaper, flooring, cabinetry, lighting, windows, insulation, appliances, as well as heating and cooling systems. This growth provides benefits to consumers and businesses alike. However, it also poses challenges to marketers seeking to highlight the environmental attributes of their products. 14 “Ownership of ‘Green’ Homes Expected to Increase Rapidly, According to new Report from Mc-Graw Hill Construction,” *available at (www.cnnmoney.com/news/newsfeeds/articles/prnewswire/NYM15222102007-1.htm)* Claims that building products are “environmentally friendly” raise potential consumer perception and substantiation issues. Sellers and marketers are making green claims for a wide variety of products and are making claims not presently addressed in the Green Guides, including such terms as “sustainable” and “renewable.” In addition, some marketers advise consumers to consider the life cycle of the building products before purchasing, *e.g.* , whether the products are made of materials that are rapidly renewable or sustainable and whether the materials can be reused or recycled when the item wears out. How consumers interpret these claims and the substantiation necessary to support them are issues we plan to discuss at the workshop. In the green building market, many sellers use certification programs to highlight the environmentally friendly aspects of homes and buildings. There are several third-party certification programs that establish criteria for green homes. 15 Typically, the home must meet certain thresholds, set forth in the certification program; however, builders frequently may choose among numerous options to reach the desired goal. For example, a green-certified home might generate less waste during construction; be located near public transportation; include appliances, windows, and insulation that reduce energy use; and utilize high efficiency water fixtures. The criteria for, and meaning of, these certifications raise a variety of consumer protection issues that we plan to explore at the workshop. 15 Three examples of these programs are: the Green Building Council’s Leadership in Energy and Environmental Design program (“LEED”); the National Association of Homebuilders’ Green Building Standard; and Green Globes’ Green Building Initiative. Builders also can obtain an “environmentally friendly” certification from the federal government through the Energy Star program, which certifies homes based on energy use. IV. Questions for Discussion at the Workshop The Commission invites written comments on any or all of the following questions regarding environmental claims for textile and building products. The Commission requests that responses to these questions be as specific as possible, including a reference to the question being answered, and reference to empirical data or other evidence wherever available and appropriate. A. Green Textile Claims

(1)How effective have the Guides’ provisions regarding general environmental claims been in preventing consumer deception and providing business guidance with respect to environmental claims for textile products? Please provide any evidence that supports your answer.

(2)Has there been a change in consumer perception of environmental claims for textiles since the Guides were revised?

(a)If so, please describe this change and provide any evidence that supports your answer.

(b)Should the Guides be revised to address any such change? If so, how?

(3)Are there environmental claims for textiles in the marketplace that are misleading? If so, please describe these claims and provide any evidence that supports your answer.

(4)To the extent not addressed in your previous answers, please explain whether and how the Guides should be revised to prevent consumer deception, provide business guidance, and/or reduce costs that following the Guides may impose on businesses, particularly small businesses, with respect to environmental claims for textiles. Please provide any evidence that supports your answer. B. Claims Regarding Organically Grown and Natural Textile Products

(1)Should the Guides be revised to include guidance regarding environmental claims for organically grown textile products? If so, why, and what guidance should be provided? If not, why not?

(a)What evidence supports making your proposed revision(s)? Please provide this evidence.

(b)What evidence is available concerning consumer understanding of the term “organic” when used to describe a textile product? Please provide this evidence.

(c)What evidence constitutes a reasonable basis to support an organic textile claim? Please provide this evidence.

(2)Should the Guides be revised to include guidance regarding environmental claims for so-called “natural” textile products? If so, why, and what guidance should be provided? If not, why not?

(a)What evidence supports making your proposed revision(s)? Please provide this evidence.

(b)What evidence is available concerning consumer understanding of the term “natural” when used to describe a textile product? Please provide this evidence.

(c)What evidence constitutes a reasonable basis to support a natural textile claim? Please provide this evidence.

(3)Are there claims regarding organically grown or natural textiles in the marketplace that are misleading? If so, please describe these claims and provide any evidence that supports your answer.

(4)To the extent not addressed in your previous answers, please explain whether and how the Guides should be revised to prevent consumer deception, provide business guidance, and/or reduce costs that following the Guides may impose on businesses, particularly small businesses, with respect to environmental claims for organically grown or natural textiles. Please provide any evidence that supports your answer. C. Green Building Claims

(1)How effective have the Guides’ provisions regarding general environmental claims been in preventing consumer deception and providing business guidance with respect to environmental claims for building products and buildings? Please provide any evidence that supports your answer.

(2)Has there been a change in consumer perception of environmental claims for building products and buildings since the Guides were revised?

(a)If so, please describe this change and provide any evidence that supports your answer.

(b)Should the Guides be revised to address any such change? If so, how?

(3)Are there environmental claims for building products and buildings in the marketplace that are misleading? If so, please describe these claims and provide any evidence that supports your answer.

(4)To the extent not addressed in your previous answers, please explain whether and how the Guides should be revised to prevent consumer deception, provide business guidance, and/or reduce costs that following the Guides may impose on businesses, particularly small businesses, with respect to environmental claims for building products and buildings. Please provide any evidence that supports your answer. D. Third-Party Certifications and Seals

(1)How effective have the Guides’ provisions regarding third-party certifications and seals been in preventing consumer deception and providing business guidance with respect to environmental claims for textiles, building products, or buildings? Please provide any evidence that supports your answer.

(2)Has there been a change in consumer perception claims using third-party certifications and seals for textiles, building products, or buildings since the Guides were revised?

(a)If so, please describe this change and provide any evidence that supports your answer.

(b)Should the Guides be revised to address any such change? If so, how?

(3)What criteria are third-party certifiers using to substantiate claims made with third-party certification or seals for textiles, building products, or buildings? Are those criteria appropriate? Please provide any evidence that supports your answers.

(4)Are there environmental claims for textiles, building products, or buildings using third-party certifications and seals in the marketplace that are misleading? If so, please describe these claims and provide any evidence that supports your answer.

(5)To the extent not addressed in your previous answers, please explain whether and how the Guides should be revised to prevent consumer deception, provide business guidance, and/or reduce costs that following the Guides may impose on businesses, particularly small businesses, with respect to environmental claims using third-party certifications and seals for textiles, building products, and buildings. Please provide any evidence that supports your answer. E. Green Building and Textiles Claims Currently Not Addressed by the Green Guides

(1)Should the Guides be revised to include guidance regarding “sustainable” or “renewable” claims for textiles and building products? If so, why, and what guidance should be provided? If not, why not?

(a)What evidence supports making your proposed revision(s)? Please provide this evidence.

(b)What evidence is available concerning consumer understanding of the terms “sustainable” or “renewable” with respect to textiles and building products? Please provide this evidence.

(c)What evidence constitutes a reasonable basis to support a “sustainable” or “renewable” claim with respect to textiles and building products? Please provide this evidence.

(2)Should the Guides be revised to include guidance regarding life cycle claims for building products?

(a)If so, why, and what guidance should be provided? If not, why not? Please provide any evidence that supports your answer.

(b)What evidence is available concerning consumer understanding of life cycle claims with respect to building products? Please provide this evidence.

(c)Is there an appropriate scientific methodology to evaluate life cycle claims for building products? If so, please provide any evidence that supports your answer.

(3)Are there other environmental claims concerning textiles or building products not currently addressed by the Guides, and if so what are they? Please provide any evidence that supports your answer.

(a)Should the Guides be revised to include guidance regarding these claims? If so, why, and what guidance should be provided? If not, why not?

(b)What evidence is available concerning consumer understanding of these claim(s)? Please provide this evidence.

(c)What evidence constitutes a reasonable basis to support these claim(s)? Please provide this evidence. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. E8-13014 Filed 6-9-08: 8:45 am] BILLING CODE 6750-01-S DEPARTMENT OF DEFENSE Department of the Army, Corps of Engineers 33 CFR Part 334 Restricted Area at Blount Island Command and Marine Corps Support Facility-Blount Island, Jacksonville, FL AGENCY: United States Army Corps of Engineers, Department of Defense. ACTION: Notice of proposed rulemaking and request for comments. SUMMARY: The U.S. Army Corps of Engineers (Corps) is proposing to amend the existing regulations for a restricted area at Blount Island Command, located on Marine Corps Support Facility-Blount Island, Jacksonville, Florida. Blount Island Command is responsible for managing the United States Marine Corps Prepositioning Programs. Due to the importance of this mission, the current restricted area in this section must be extended due to Department of Defense

(DoD)directives that require the implementation of specified force protection measures by all DoD components. This amendment to the existing regulation is necessary to protect U.S. government personnel, equipment, and facilities from potential terrorist attack by providing stand-off corridors encompassing the waters immediately contiguous to Marine Corps Support Facility—Blount Island. DATES: Written comments must be submitted on or before July 10, 2008. ADDRESSES: You may submit comments, identified by docket number COE-2007-0037, by any of the following methods: *Federal eRulemaking Portal: http://www.regulations.gov* . Follow the instructions for submitting comments. *E-mail: david.b.olson@usace.army.mil* . Include the docket number, COE-2007-0037, in the subject line of the message. *Mail:* U.S. Army Corps of Engineers, Attn: CECW-CO (David B. Olson), 441 G Street, NW., Washington, DC 20314-1000. *Hand Delivery/Courier:* Due to security requirements, we cannot receive comments by hand delivery or courier. *Instructions:* Direct your comments to docket number COE-2007-0037. All comments received will be included in the public docket without change and may be made available on-line at *http://www.regulations.gov* , including any personal information provided, unless the commenter indicates that 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 Web site is an anonymous access system, which means we will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail directly to the Corps 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 public docket and made available on the Internet. If you submit an electronic comment, we recommend 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 we cannot read your comment because of technical difficulties and cannot contact you for clarification, we may not be able to consider your comment. Electronic comments should avoid the use of any special characters, any form of encryption, and be free of any defects or viruses. *Docket:* For access to the docket to read background documents or comments received, go to *www.regulations.gov.* All documents in the docket are listed. Although listed in the index, some information is not publicly available, such as 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. Consideration will be given to all comments received within 30 days of the date of publication of this notice. FOR FURTHER INFORMATION CONTACT: Mr. David Olson, Headquarters, Operations and Regulatory Community of Practice, Washington, DC at 202-761-4922 or Mr. Jon M. Griffin, U.S. Army Corps of Engineers, Jacksonville District, Regulatory Division, at 904-232-1680. SUPPLEMENTARY INFORMATION: Pursuant to its authorities in Section 7 of the Rivers and Harbors Act of 1917 (40 Stat. 266; 33 U.S.C. 1) and Chapter XIX of the Army Appropriations Act of 1919 (40 Stat. 892; 33 U.S.C. 3) the Corps is proposing to amend the regulations in 33 CFR part 334 by modifying § 334.515. The modification to the existing restricted area is described below. The amendment to this regulation will allow the Commanding Officer, Blount Island Command and Marine Corps Support Facility—Blount Island to restrict passage of persons, watercraft, and vessels in waters contiguous to this Command, thereby ensuring that DoD force protection requirements are met and antiterrorism measures are properly implemented as required by DoD directives. Procedural Requirements a. *Review Under Executive Order 12866.* The proposed rule is issued with respect to a military function of the Defense Department and the provisions of Executive Order 12866 do not apply. b. *Review Under the Regulatory Flexibility Act.* The proposed rule has been reviewed under the Regulatory Flexibility Act (Pub. L. 96-354) which requires the preparation of a regulatory flexibility analysis for any regulation that will have a significant economic impact on a substantial number of small entities (i.e., small businesses and small governments). Unless information is obtained to the contrary during the comment period, the Corps expects that the economic impact of the amendment of this restricted area would have practically no impact on the public, or result in no anticipated navigational hazard or interference with existing waterway traffic. This proposed rule if adopted, will have no significant economic impact on small entities. c. *Review Under the National Environmental Policy Act.* Due to the administrative nature of this action and because there is no intended change in the use of the area, the Corps expects that this regulation, if adopted, will not have a significant impact to the quality of the human environment and, therefore, preparation of an environmental impact statement will not be required. An environmental assessment will be prepared after the public notice period is closed and all comments have been received and considered. It may be reviewed at the District office listed at the end of FOR FURTHER INFORMATION CONTACT , above. d. *Unfunded Mandates Act.* This proposed rule does not impose an enforceable duty among the private sector and, therefore, is not a Federal private sector mandate and is not subject to the requirements of Section 202 or 205 of the Unfunded Mandates Reform Act (Pub. L. 104-4, 109 Stat. 48, 2 U.S.C. 1501 et seq.). We have also found under Section 203 of the Act, that small governments will not be significantly or uniquely affected by this rule. List of Subjects in 33 CFR Part 334 Danger zones, Navigation (water), Restricted areas, Waterways. For the reasons set out in the preamble, the Corps proposes to amend 33 CFR part 334 as follows: PART 334—DANGER ZONE AND RESTRICTED AREA REGULATIONS 1. The authority citation for part 334 continues to read as follows: Authority: 40 Stat. 266 (33 U.S.C. 1) and 40 Stat. 892 (33 U.S.C. 3). 2. Revise § 334.515 to read as follows: § 334.515 Blount Island Command and Marine Corps Support Facility—Blount Island; Jacksonville, Florida restricted areas.

(a)*The areas* .

(1)The restricted areas shall encompass all navigable waters of the United States, as defined at 33 CFR 329, contiguous to the area identified as Blount Island Command and Marine Corps Support Facility—Blount Island (MCSF-BI). The three areas are contiguous but each area is described separately below for clarification.

(2)*Area 1* . Commencing from the shoreline at the northwest portion of the facility, at latitude 30°24′46.10″ N, longitude 81°32′19.01″ W, thence proceed 200 yards in a northwesterly direction to latitude 30°24′49.84″ N, longitude 81°32′23.12″ W. From this point the line meanders irregularly, following the shoreline at a distance of 200 yards from the mean high water line to a point at latitude 30°23′36.75″ N, longitude 81°30′26.42″ W, thence southwesterly to a point at latitude 30°23′34.44″ N, longitude 81°30′28.80″ W, thence west southwesterly to a point at latitude 30°23′33.68″ N, longitude 81°30′32.61″ W.

(3)*Area 2* . This includes all waters within the area generally identified as the U.S. Marine Corps Slipway but which is also known as the Back River area and the waters out to a distance of 100 yards from the entranceway. From the last point identified in paragraph (a)(2) of this section, latitude 30°23′33.68″ N, longitude 81°30′32.61″ W, proceed west southwesterly to a point at latitude 30°23′30.93″ N, longitude 81°30′57.14″ W.

(4)*Area 3* . From the last point identified in paragraph (a)(3) of this section, latitude 30°23′30.93″ N, longitude 81°30′57.14″ W, the line meanders irregularly in a westerly direction, following the shoreline at a distance of 100 yards from the mean high water line to a point at latitude 30°23′26.34″ N, longitude 81°31′49.73″ W, thence proceed north to terminate at a point on the shoreline at latitude 30°23′29.34″ N, longitude 81°31′49.79″ W.

(b)*The regulations* .

(1)With the exception of local, State and federal law enforcement entities, all persons, vessels, and other craft are prohibited from entering, transiting, anchoring, or drifting within the areas described in paragraph

(a)of this section for any reason without the permission of the Commanding Officer, Marine Corps Support Facility-Blount Island, Jacksonville, Florida, or his/her authorized representative.

(2)The restriction noted in paragraph (b)(1) of this section is in effect 24 hours a day, 7 days a week.

(3)Warning signs will be posted near the NCSF-BI shoreline advising boaters of the restrictions in this section.

(c)*Enforcement.*

(1)The regulations in this section shall be enforced by the Commanding Officer, Marine Corps Support Facility-Blount Island, Jacksonville, Florida, and/or such persons or agencies as he/she may designate.

(2)Enforcement of the regulations in this section will be accomplished utilizing the Department of Defense Force Protection Condition (FPCON) System. From the lowest security level to the highest, Force Protection Conditions levels are titled Normal, Alpha, Bravo, Charlie and Delta. The regulations in this section will be enforced as noted in paragraph

(b)of this section, or at the discretion of the Commanding Officer. Dated: June 4, 2008. Michael Ensch, Chief, Operations, Directorate of Civil Works. [FR Doc. E8-12988 Filed 6-9-08; 8:45 am] BILLING CODE 3710-92-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 60 [EPA-HQ-OAR-2008-0260; FRL-8577-6] RIN 2060-AO57 Standards of Performance for Coal Preparation Plants AGENCY: Environmental Protection Agency (EPA). ACTION: Extension of public comment period. SUMMARY: EPA is announcing the extension of the public comment period on the proposed reconsideration of the amendments to the new source performance standards for coal preparation plants. EPA originally requested comments on the proposed rule by June 12, 2008. EPA is extending the deadline to July 14, 2008, and is now requesting written comments by that date. EPA received a request for a 30-day extension to the comment period from the Sierra Club and the National Association of Clean Air Agencies. The reason given for the request for the extension was the need for additional time to gather data and review the proposed amendments. Since the original comment period was 45 days, EPA finds this request reasonable. DATES: *Comments.* Comments on the proposed rule published April 28, 2008 (73 FR 22901) must be received on or before July 14, 2008. ADDRESSES: *Comments.* Submit your comments, identified by Docket ID No. EPA-HQ-OAR-2008-0260, by one of the following methods: • *http://www.regulations.gov.* Follow the on-line instructions for submitting comments. • *E-mail: a-and-r-docket@epa.gov.* • *By Facsimile:*

(202)566-1741. • *Mail:* Air and Radiation Docket, U.S. EPA, Mail Code 6102T, 1200 Pennsylvania Ave., NW., Washington, DC 20460. Please include a total of two copies. EPA requests a separate copy also be sent to the contact person identified below (see FOR FURTHER INFORMATION CONTACT ). • *Hand Delivery:* EPA Docket Center, Docket ID Number EPA-HQ-OAR-2008-0260, EPA West Building, 1301 Constitution Ave., NW., Room 3334, Washington, DC 20004. Such deliveries are accepted only during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information. *Instructions:* Direct your comments to Docket ID No. EPA-HQ-OAR-2008-0260. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at *http://www.regulations.gov,* including any personal information provided, unless the comment includes information claimed to be Confidential Business Information

(CBI)or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through regulations.gov or e-mail. The *http://www.regulations.gov* Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through *http://www.regulations.gov,* your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. 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 *http://www.regulations.gov* index. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically at *http://www.regulations.gov* or in hard copy at the Air and Radiation Docket EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is

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

(202)566-1742. FOR FURTHER INFORMATION CONTACT: Mr. Christian Fellner, Energy Strategies Group, Sector Policies and Programs Division (D243-01), U.S. EPA, Research Triangle Park, NC 27711, telephone number

(919)541-4003, facsimile number

(919)541-5450, electronic mail (e-mail) address: *fellner.christian@epa.gov.* List of Subjects in 40 CFR Part 60 Environmental protection, Administrative practice and procedure, Air pollution control, Intergovernmental relations, Reporting and recordkeeping requirements. Dated: June 4, 2008. Elizabeth Craig, Acting Principal Deputy Assistant Administrator. [FR Doc. E8-12976 Filed 6-9-08; 8:45 am] BILLING CODE 6560-50-P DEPARTMENT OF HEALTH AND HUMAN SERVICES Office of Child Support Enforcement 45 CFR Parts 309 and 310 Tribal Child Support Enforcement Program AGENCY: Office of Child Support Enforcement, Administration for Children and Families, Department of Health and Human Services. ACTION: Notice of open consultation. SUMMARY: Notice is hereby given for the dates and locations for one informational meeting and three Tribal consultations on the Computerized Tribal IV-D Systems and Office Automation Notice of Proposed Rulemaking (NPRM). On June 11, 2008, the **Federal Register** will publish an NPRM that would enable Tribes and Tribal organizations currently operating a comprehensive Tribal Child Support Enforcement program under Title IV-D of the Social Security Act (the Act) to apply for and receive direct Federal funding for the costs of child support automated data processing. This proposed rule addresses the Secretary's commitment to provide instructions and guidance to Tribes and Tribal organizations on requirements for applying for, and upon approval, securing Federal Financial Participation

(FFP)under the Tribal IV-D program in the costs of installing, operating, maintaining, and enhancing child support automated data processing systems. The public comment period for this regulation will be 60 days from the date of the publication of the NPRM. The Federal Office of Child Support Enforcement

(OCSE)will host one meeting to introduce the proposed rule and three consultations to receive public comment on the proposed rule. This notification provides specific information for the informational meeting and consultations. DATES: The informational meeting will be held on June 11, 2008 in Cherokee, North Carolina and will begin promptly at 9:15 a.m. and end at 12:30 p.m. The consultations will be held June 27, 2008 in Seattle, Washington; July 8, 2008 in Catoosa, Oklahoma and July 9, 2008 in Milwaukee, Wisconsin. The consultation in Seattle, Washington will begin promptly at 10 a.m. and end at 3 p.m. with an hour lunch break. The consultation in Catoosa, Oklahoma will begin at 10 a.m. and end at 3 p.m. with an hour lunch break. The consultation in Milwaukee, Wisconsin will begin at 1 p.m. and end at 5 p.m. Please note that participants must arrange and pay for their own travel, lodging, meals and incidental expenses. ADDRESSES: The informational meeting will be held at Harrah's Cherokee Casino and Hotel, 777 Casino Drive, in Cherokee, North Carolina 28719. The telephone number for hotel reservations is

(828)497-7777. The first consultation, June 27, 2008, will be held at the Administration for Children and Families

(ACF)Region X Federal Facility, 2201 6th Avenue, Suites 204-205, in Seattle, Washington 98121. Participants may be required to present a government issued photo ID in order to enter the ACF Region X Federal Facility. The second consultation, July 8, 2008, will be held at the Cherokee Casino Resort Hotel, 777 West Cherokee Street in Catoosa, Oklahoma 74015. The telephone number for hotel reservations is

(918)266-6700. The third consultation, July 9, 2008, will be held at Potawatomi Bingo & Casino in Milwaukee, Wisconsin 74015. The telephone number for hotel reservations is

(414)389-1298. These are not toll-free numbers. All interested parties are invited to attend these public consultations. Seating may be limited and will be available on a first-come, first-serve basis. Persons needing special assistance should contact the Division of Special Staffs, OCSE, at the address listed below. FOR FURTHER INFORMATION CONTACT: Ms. Tanesha Canzater, Division of Special Staffs, OCSE, Fourth Floor East, 370 L'Enfant Promenade, SW., Washington, DC 20447 (telephone

(202)205-4922; or e-mail *tanesha.canzater@acf.hhs.gov* ) or Ms. Donna McBurnett, Division of Special Staffs, OCSE, Fourth Floor East, 370 L'Enfant Promenade, SW., Washington, DC 20447 (telephone

(202)401-5746; or e-mail *dmmcburnett@acf.hhs.gov* ). These are not toll-free numbers. SUPPLEMENTARY INFORMATION: The purpose of these consultations is to provide an overview of the proposed regulation and to elicit public comment. Persons who attend the consultations may make oral presentations and/or provide written comments for the record at the consultation. We strongly encourage persons who make oral presentations at the consultations to submit written comments in support of their presentations. *Public Participation:* Individuals who wish to make an oral presentation on these proposed rules at any of the meetings are welcome to do so. Attendees must register at the meeting site and identifying information about prospective presenters will be recorded, such as name, organization (if any), address, and telephone number, so that presenters can be accurately identified and properly introduced at the consultations. Persons who are registered will make their presentations first; then, as time allows, persons who did not register will make their presentations. Presentations must be about the proposed rule, should be specific, and should include specific recommendations for changes where appropriate. In fairness to other participants, presentations should be concise and will be limited to a maximum of 10 minutes each. The order of persons making such presentations will be the order in which the requests are received. At the meetings, OCSE cannot address participants' concerns regarding the proposed rules, or respond to questions about the proposed rules other than questions asking for clarification. It is expected that individuals attending these meetings will have read the NPRM. OCSE will consider comments and recommendations provided at the consultations, and written comments and recommendations submitted as we prepare the final version of these regulations. Minutes of the public meeting will be available for public inspection and copying at the Department of Health and Human Services

(HHS)14 days after the conclusion of the consultations. At HHS, these documents will be available through the Director, Division of Special Staffs, ACF, 370 L'Enfant Promenade, SW., Washington, DC from 9 a.m. to 5 p.m. Questions regarding the availability of the minutes should be directed to Ms. Tanesha Canzater, Division of Special Staffs, OCSE, Fourth Floor East, 370 L'Enfant Promenade, SW., Washington, DC 20447 (telephone

(202)205-4992). This is not a toll-free number. Margot Bean, Commissioner, Office of Child Support Enforcement. [FR Doc. E8-13073 Filed 6-9-08; 8:45 am] BILLING CODE 4184-01-P GENERAL SERVICES ADMINISTRATION 48 CFR Parts 519 and 552 [GSAR Case 2006-G501; Docket 2008-0007; Sequence 2] RIN 3090-AI56 General Services Acquisition Regulation; GSAR Case 2006-G501; GSA Mentor-Protégé Program AGENCY: Office of the Chief Acquisition Officer, General Services Administration (GSA). ACTION: Proposed rule. SUMMARY: The General Services Administration

(GSA)is proposing to amend the General Services Acquisition Regulation

(GSAR)to establish a GSA Mentor-Protégé Program. The GSA Mentor-Protégé Program is designed to encourage GSA prime contractors to assist small businesses, small disadvantaged businesses, women-owned small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone small businesses in enhancing their capabilities to perform GSA contracts and subcontracts, foster the establishment of long-term business relationships between these small business entities and GSA prime contractors, and increase the overall number of small business entities that receive GSA contract and subcontract awards. DATES: Interested parties should submit written comments to the Regulatory Secretariat on or before August 11, 2008 to be considered in the formulation of a final rule. ADDRESSES: Submit comments identified by GSAR Case 2006-G501 by any of the following methods: • Regulations.gov: *http://www.regulations.gov* . Submit comments via the Federal eRulemaking portal by inputting “GSAR Case 2006-G501” under the heading “Comment or Submission”. Select the link “Send a Comment or Submission” that corresponds with GSAR Case 2006-G501. Follow the instructions provided to complete the “Public Comment and Submission Form”. Please include your name, company name (if any), and “GSAR Case 2006-G501” on your attached document. • Fax: 202-501-4067. • Mail: General Services Administration, Regulatory Secretariat (VPR), 1800 F Street, NW, Room 4041, ATTN: Laurieann Duarte, Washington, DC 20405. *Instructions:* Please submit comments only and cite GSAR Case 2006-G501 in all correspondence related to this case. All comments received will be posted without change to *http://www.regulations.gov* , including any personal and/or business confidential information provided. FOR FURTHER INFORMATION CONTACT For clarification of content, contact Ms. Rhonda Cundiff at

(202)501-0044. For information pertaining to the status or publication schedules, contact the Regulatory Secretariat (VPR), Room 4041, GS Building, Washington, DC 20405,

(202)501-4755. Please cite GSAR Case 2006-G501. SUPPLEMENTARY INFORMATION: A. Background This proposed rule amends the General Services Administration Acquisition Regulation

(GSAR)by adding a new Subpart, 519.70, GSA Mentor-Protégé Program, which outlines the Agency's Mentor-Protégé Program. Associated contract clauses are added at 552.219-75, GSA Mentor-Protégé Program, and 552.219-76, Mentor Requirements and Evaluation. GSA strongly supports increasing opportunities for small business concerns, recognizing the continuing need to develop the capabilities of small business, small disadvantaged business, HUBZone small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses and women-owned small businesses to perform contracts and subcontracts for GSA. This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. B. Regulatory Flexibility Act The changes may have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, *et seq.* , because the rule will provide an opportunity for small business concerns to become protégés and receive developmental assistance from GSA prime contractors under GSA contracts. The GSA Mentor-Protégé Program is intended to provide subcontracting opportunities for protégés to gain valuable experience and knowledge about Federal Government contracting. An Initial Regulatory Flexibility Analysis

(IRFA)has been prepared. The analysis is summarized as follows: This proposed rule establishes a GSA Mentor-Protégé Program to encourage GSA prime contractors to assist small businesses, small disadvantaged businesses, women-owned small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone small businesses in enhancing their capabilities to perform GSA contracts and subcontracts, foster the establishment of long-term business relationships between these small business entities and GSA prime contractors, and increase the overall number of small business entities that receive GSA contract and subcontract awards. In accordance with the Small Business Act, it is the policy of the Government to provide maximum practicable opportunities in its acquisitions to these small business concerns and allow them to have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance. The General Services Administration Mentor-Protégé Program is designed to assist in this policy by encouraging GSA prime contractors to assist small businesses in enhancing their capabilities to perform contracts and subcontracts. The entities to which this rulemaking would apply are small business protégés. It is estimated that there will be approximately 150 small business concerns impacted by this rule. The protégés (small businesses) will be completing the Agreement with the mentor. In addition, the protégés may complete voluntary reports pertaining to the GSA Mentor-Protégé Program. The Regulatory Secretariat will be submitting a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat. GSA will consider comments from small entities concerning the affected GSAR parts 519 and 552 in accordance with 5 U.S.C. 610. Comments must be submitted separately and should cite 5 U.S.C. 601, *et seq.* (GSAR Case 2006-G501), in all correspondence. C. Paperwork Reduction Act The Paperwork Reduction Act (Pub. L. 104-13) applies because the proposed rule contains information collection requirements. Accordingly, the Regulatory Secretariat will be submitting a request for approval of a new information collection requirement concerning 3090-00XX, GSAR Case 2006-G501, GSA Mentor-Protégé Program, to the Office of Management and Budget under 44 U.S.C. 3501, *et seq.* *Annual Reporting Burden:* Public reporting burden for this collection of information is estimated to average 3 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The annual reporting burden is estimated as follows: *Respondents:* 300. *Responses per respondent:* 4. *Total annual responses:* 1200. *Preparation hours per response:* 3. *Total response burden hours:* 3600. D. Request for Comments Regarding Paperwork Burden Submit comments, including suggestions for reducing this burden, not later than August 11, 2008 to: GSAR Desk Officer, OMB, Room 10102, NEOB, Washington, DC 20503, and a copy to the General Services Administration, Regulatory Secretariat (VPR), 1800 F Street, NW, Room 4041, Washington, DC 20405. Public comments are particularly invited on: whether this collection of information is necessary for the proper performance of functions of the GSAR, and will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; ways to enhance the quality, utility, and clarity of the information to be collected; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology. Requester may obtain a copy of the justification from the General Services Administration, Regulatory Secretariat (VPR), Room 4041, Washington, DC 20405, telephone

(202)501-4755. Please cite OMB Control Number 3090-XXXX, GSAR Case 2006-G501, The GSA Mentor-Protégé Program, in all correspondence. List of Subjects in 48 CFR Parts 519 and 552 Government procurement. Dated: June 3, 2008. Al Matera, Director, Office of Acquisition Policy. Therefore, GSA proposes to amend 48 CFR parts 519 and 552 as set forth below: 1. The authority citation for 48 CFR parts 519 and 552 continues to read as follows: Authority: 40 U.S.C. 121(c). PART 519—SMALL BUSINESS PROGRAMS 2. Add Subpart 519.70 to read as follows: Sec. 519.7001 Scope of subpart. 519.7002 Definitions. 519.7003 General policy. 519.7004 Incentives for prime contractor participation. 519.7005 Measurement of program success. 519.7006 Mentor firms. 519.7007 Protégé firms. 519.7008 Selection of protégé firms. 519.7009 Application process for mentor firms to participate in the Program. 519.7010 Application review and mentor-protégé Agreement process. 519.7011 Agreement contents. 519.7012 Developmental assistance. 519.7013 Obligation. 519.7014 Internal controls. 519.7015 Reports. 519.7016 Program review. 519.7017 Contract clauses. Subpart 519.70—GSA Mentor-Protégé Program 519.7001 Scope of subpart. The GSA Mentor-Protégé Program is designed to encourage and motivate GSA prime contractors to assist small businesses, small disadvantaged businesses, women-owned small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses, and HUBZone small businesses, and enhance their capabilities to perform GSA contracts and subcontracts, foster the establishment of long-term business relationships between these small business entities and GSA prime contractors, and increase the overall number of small business entities that receive GSA contract and subcontract awards. 519.7002 Definitions. The definitions of small business concern, small disadvantaged business concern, HUBZone small business concern, women-owned small business concern, veteran-owned small business concern, and service-disabled veteran-owned small business concern are the same as found in FAR 2.101. (Also, see 13 CFR Parts 121, 124, 125 and 126 of the Small Business Administration Regulation.)

(a)*Mentor* as used in the GSA Mentor-Protégé Program is a prime contractor that elects, on a specific GSA contract, to promote and develop small business subcontractors by providing developmental assistance designed to enhance the business success of the protégé.

(b)*Mentor-Protégé Program Manager* means the head of the Office of Small Business Utilization (OSBU (E)).

(c)*Protégé* as used in the GSA Mentor-Protégé Program is a small business who is the recipient of developmental assistance pursuant to a mentor-protégé arrangement on a specific contract. 519.7003 General policy.

(a)A large business prime contractor which meets the requirements at 519.7006 and is approved as a mentor firm by the Mentor-Protégé Program Manager may enter into an Agreement with a small business, small disadvantaged business, women-owned small business, veteran-owned small business and HUBZone small business which meets the requirements for being a protégé (see 519.7007) to provide appropriate developmental assistance to enhance the capabilities of the protégé to perform as a subcontractor and supplier.

(b)A small business prime contractor which is capable of providing developmental assistance to protégés, may also be approved as a mentor.

(c)An active mentor-protégé arrangement requires the Protégé to be a subcontractor under the mentor's prime contract with GSA.

(d)A firm's status as a protégé under a GSA contract shall not have an effect on the firm's ability to seek other prime contracts or subcontracts.

(e)Mentors may join the GSA Mentor-Protégé Program at any time as long as they meet the requirements at 519.7006. 519.7004 Incentives for prime contractor participation.

(a)Under the Small Business Act, 15 U.S.C. 637(d)(4)(E), the GSA is authorized to provide appropriate incentives to encourage subcontracting opportunities for small business consistent with the efficient and economical performance of the contract. This authority is limited to negotiated procurements.

(b)Costs incurred by a mentor to provide developmental assistance, as described in 519.7012 to fulfill the terms of their agreement(s) with a protégé firm(s), are not reimbursable as a direct cost under a GSA contract. If GSA is the mentor's responsible audit agency under FAR 42.703-1, GSA will consider these costs in determining indirect cost rates. If GSA is not the responsible audit agency, mentors are encouraged to enter into an advance Agreement with their responsible audit agency on the treatment of such costs when determining indirect cost rates.

(c)In addition to paragraph

(b)of this section, contracting officers may give mentors evaluation credit under FAR 15.101-1 considerations for subcontracts awarded pursuant to their Mentor-Protégé Agreements and their subcontracting plans. Therefore—

(1)Contracting officers may evaluate subcontracting plans containing Mentor-Protégé Agreements more favorably than subcontracting plans without Mentor-Protégé Agreements; and

(2)Contracting officers may assess the prime contractor's compliance with the subcontracting plans submitted in previous contracts as a factor in evaluating past performance under certain circumstances (see FAR 15.304(b)(3), and 15.305(a)(2)(v)), and determining contractor responsibility 19.705-5(a)(1).

(d)*OSBU Mentoring Award.* A non-monetary award may be presented annually to the mentoring firm providing the most effective developmental support of a protégé. The Mentor-Protégé Program Manager will recommend an award winner to the GSA Administrator.

(e)*OSBU Mentor-Protégé Annual Conference* . At the conclusion of each year in the GSA Mentor-Protégé Program, mentor firms will be invited to brief contracting officers, program leaders, office directors, and other guests on Program progress. Participation is voluntary. 519.7005 Measurement of program success. The overall success of the GSA Mentor-Protégé Program encompassing all participating mentors and protégés will be measured by the extent to which it results in—

(a)An increase in the number, dollar value and percentage of subcontracts awarded to protégés by mentor firms under GSA contracts since the date of entry into the Program;

(b)An increase in the number and dollar value of contract and subcontract awards to protégé firms since the time of their entry into the Program (under GSA contracts, contracts awarded by other Federal agencies, and under commercial contracts);

(c)An increase in the number and dollar value of subcontracts awarded to a protégé firm by its mentor firm; and

(d)An increase in subcontracting with protégé firms in industry categories where they have not traditionally participated within the mentor firm's activity. 519.7006 Mentor firms.

(a)Mentors must be—

(1)A large business prime contractor that is currently, or has performed under at least one approved subcontracting plan awarded under a negotiated contract within the last five years, as required by FAR Subpart 19.7; Small business mentors are exempted; or

(2)A small business prime contractor that can provide developmental assistance to enhance the capabilities of protégés to perform as subcontractors and suppliers;

(b)Must be eligible (not listed in the “Excluded Parties List System”) for U.S. Government contracts and not excluded from the GSA Mentor-Protégé Program under 519.7014(b);

(c)Must be able to provide developmental assistance that will enhance the ability of protégé to perform as subcontractors; and

(d)Must provide semi-annual reports detailing the assistance provided and the cost incurred in supporting protégés. 519.7007 Protégé firms.

(a)For selection as a protégé, a firm must be—

(1)A small business concern, small disadvantaged business concern, veteran-owned small business concern, service-disabled veteran-owned small business concern, HUBZone small business concern, or women-owned small business concern;

(2)Small for the NAICS code the prime contractor/mentor assigns to the subcontract; and

(3)Eligible (not listed in the “Excluded Parties List System”) for U.S. Government contracts and not excluded from the GSA Mentor-Protégé Program under 519.7014(b);

(b)A protégé firm may self-represent to a mentor firm that it meets the requirements set forth in paragraph

(a)of this section. Mentors may check the Central Contractor Registration

(CCR)at www.ccr.gov to verify the self-representations of the potential protégés that they meet the specified small business and socioeconomic category eligibility requirements (see 19.703(b) and (d)). HUBZone and small disadvantaged business status eligibility and documentation requirements are determined according to 13 CFR parts 124 and 126.

(c)A protégé firm must not have another formal, active mentor-protégé relationship under GSA's Mentor-Protégé Program but may have an active mentor-protégé relationship in another agency's program. 519.7008 Selection of protégé firms.

(a)Mentor firms will be solely responsible for selecting protégé firms. Mentors are encouraged to select from a broad base of small business including small disadvantaged business, women-owned small business, veteran-owned small business, service-disabled veteran-owned small business, and HUBZone small business.

(b)Mentor firms may have more than one protégé.

(c)The selection of protégé firms by mentor firms may not be protested, except for a protest regarding the size or eligibility status of an entity selected by a mentor to be a protégé. Such protests shall be handled in accordance with FAR 19.703(b). The contracting officer shall notify the Office of Small Business Utilization

(OSBU)of the protest. 519.7009 Application process for mentor firms to participate in the Program.

(a)Prime contractors interested in becoming a mentor firm must submit a request to be approved under the Program to the GSA Mentor-Protégé Program Manager, at GSA Office of Small Business Utilization (E), Washington, DC 20405. The Application will be evaluated on the extent to which the company plans to provide developmental assistance.

(b)The request must contain—

(1)A statement that the mentor firm is currently performing under at least one active approved subcontracting plan (small business exempted) and that they are eligible, as of the date of Application, for the award of Federal contracts;

(2)The number of proposed protégé arrangements;

(3)Data on all current GSA contracts, and subcontracts to include the contract/subcontract number(s), type of contract(s), period of performance (including options), contract/subcontract value(s) including options, technical Program effort(s) (Program title), name of GSA Project Manager or Contracting Officer's Representative (including contact information), name of contracting officer(s)and contact information, and awarding GSA installation;

(4)Data on total number and dollar value of subcontracts awarded under GSA prime contracts within the past 2 years and the number and dollar value of such subcontracts awarded to entities who are proposed protégés;

(5)Information on the proposed types of developmental assistance. For each proposed mentor-protégé relationship include information on the company's ability to provide developmental assistance to the identified protégé firm and how that assistance will potentially increase subcontracting opportunities for the protégé firm, including subcontracting opportunities in industry categories where these entities are not dominant in the company's current subcontractor base; and

(6)A Letter of Intent signed by both parties. At a minimum, the Letter of Intent must include the stated commitment that the parties intend to enter into a mentor-protégé Agreement under the GSA Program, that they intend to cooperate in the establishment of a suitable developmental assistance Program to meet their respective needs, and that they agree to comply with the obligations in 519.7013 and all other applicable provisions governing the Program. 519.7010 Application review and mentor-protégé Agreement process. (a)(1) *Application process* . The information specified in 519.7009(b) is reviewed by the GSA Mentor-Protégé Program Manager. This review will be completed no later than 30 days after receipt by the Mentor-Protégé Program Manager OSBU. The Mentor-Protégé Program Manager will provide a copy of the submitted information to the contracting officer and if applicable the cognizant GSA technical Program Manager for a parallel review and concurrence.

(2)If the Mentor-Protégé Program Manager approves the Application, then the mentor—

(i)Negotiates a mentor-protégé Agreement with the protégé; and

(ii)Submits an original and two

(2)copies of the Agreement to the GSA Mentor-Protégé Program Manager for approval.

(3)If Mentor-Protégé Program Manager disapproves the application, then the mentor may provide additional information for reconsideration. The review of any supplemental material will be completed within 30 days after receipt by the Mentor-Protégé Program Manager. Upon finding deficiencies that GSA considers correctable, the Mentor-Protégé Program Manager will notify the mentor and request information to be provided within 30 days that may correct the deficiencies.

(b)The Mentor-Protégé Program Manager will provide a copy of the Agreement to the contracting officer, and if applicable the cognizant GSA technical Program Manager, for a parallel review and concurrence. The Mentor-Protégé Program Manager, the GSA technical Program Manager, and the contracting officer must approve or disapprove the Agreement within 60 days.

(c)Upon notification by the Mentor-Protégé Program Manager that all the GSA parties have approved the Agreement, the mentor may implement a developmental assistance Program.

(d)The contracting officer will incorporate an approved Agreement into the mentor's contract(s) with GSA. It should be added to the subcontracting plan. 519.7011 Agreement contents. The contents of the Agreement must contain—

(a)Names, addresses (including facsimile, e-mail, and homepage) and telephone numbers of mentor and protégé firms and the name, telephone number, and position title within both firms of the person who will oversee the Agreement;

(b)An eligibility statement from the protégé stating that it is a small business, its primary NAICs code, and when applicable the type of small business (small disadvantaged business concern, HUBZone small business concern, women-owned small business concern, veteran-owned small business concern, service-disabled veteran-owned small business concern);

(c)A description of the type of developmental Program that will be provided by the mentor firm to the protégé firm (see 519.7012);

(d)Milestones for providing the identified developmental assistance;

(e)Factors to assess the protégé firms developmental progress under the Program;

(f)The anticipated dollar value and type of subcontracts that may be awarded to the protégé firm consistent with the extent and nature of mentor firm's business, and the period of time over which they may be awarded;

(g)*Program participation term* . State the period of time over which the developmental assistance will be performed;

(h)*Mentor termination procedures* . Describe the procedures for the mentor firm to notify the Protégé firm, in writing, at least 30 days in advance of the mentor firm's intent to voluntarily withdraw its participation in the Program, or to terminate the Agreement;

(i)*Protégé Termination From the Program* . Describe the procedures for a protégé firm to notify the mentor firm, in writing, at least 30 days in advance of the protégé firm's intent to terminate the mentor-protégé Agreement;

(j)Plan for accomplishing contract work should the Mentor-Protégé Agreement be terminated or a party excluded under 519.7014(b). The mentor prime's contract with GSA continues even if the Mentor-Protégé Agreement or the GSA Mentor-Protégé Program is discontinued;

(k)The protégé must agree to provide input into the mentor firm's semi-annual reports (see 519.7015). The protégé must submit a “lessons learned” evaluation along with the mentor firm at the conclusion of the Mentor-Protégé agreement; and

(l)Other terms and conditions, as appropriate. 519.7012 Developmental assistance. The forms of developmental assistance a mentor can provide to a protégé include—

(a)Management guidance relating to—

(1)Financial management;

(2)Organizational management;

(3)Overall business management/planning; and

(4)Business development;

(b)Engineering and other technical assistance;

(c)Loans;

(d)Rent-free use of facilities and/or equipment;

(e)Temporary assignment of personnel to the protégé for purpose of training;

(f)Subcontracts awarded to protégé firms under this Program are exempt from competition requirements, notwithstanding 52.244-5. However, price reasonableness should still be determined; or

(g)Any other types of permissible, mutually beneficial assistance. 519.7013 Obligation.

(a)The mentor or protégé may terminate the Agreement in accordance with 519.7011. The mentor will notify the Mentor-Protégé Program Manager and the contracting officer, in writing, at least 30 days in advance of the mentor firm's intent to voluntarily withdraw from the Program or to terminate the Agreement, or upon receipt of a protégé’s notice to withdraw from the Program.

(b)Mentor and protégé firms will submit a “lessons learned” evaluation to the GSA Mentor-Protégé Program Manager at the conclusion of each Mentor-Protégé Agreement. 519.7014 Internal controls.

(a)The GSA Mentor-Protégé Program Manager will manage the Program. Internal controls will be established by the Mentor-Protégé Program Manager to achieve the stated Program objectives (by serving as checks and balances against undesired actions or consequences) such as the following:

(1)Reviewing and evaluating mentor Applications for realism, validity and accuracy of provided information.

(2)Reviewing any semi-annual progress reports submitted by mentors and protégés on protégé development to measure protégé progress against the master plan contained in the approved Agreement.

(b)GSA has the authority to exclude mentor or protégé firms from participating in the GSA Program.

(1)The contracting officer or technical Program Manager can recommend exclusion and the length of exclusion from the Program. These actions shall be approved by the GSA Mentor-Protégé Program Manager.

(2)If GSA has good cause to exclude a mentor or a protégé from the Program, the GSA Office of Small Business Utilization will deliver to the contractor a Notice specifying the reason for Program exclusion and the effective date.

(3)The exclusion from the Program does not constitute a termination of the subcontract between the mentor and the protégé. 519.7015 Reports.

(a)Semi-annual reports shall be submitted by the mentor to the GSA Mentor-Protégé Program Manager to include information as outlined in 552.219-76(c).

(b)Protégés must agree to provide input into the mentor firm's semi-annual reports detailing the assistance provided and goals achieved since agreement inception. However, for cost reimbursable contracts, costs associated with the preparation of these reports are unallowable costs under these Government contracts and will not be reimbursed by the Government.

(c)The GSA contracting officer, or if applicable the technical Program Manager, shall include an assessment of the prime contractor's (mentor's) performance in the Mentor-Protégé Program in a quarterly ‘Strengths and Weaknesses’ evaluation report. A copy of this assessment will be provided to the Mentor-Protégé Program Manager and to the mentor and protégé. 519.7016 Program review. At the conclusion of each year in the GSA Mentor-Protégé Program (anniversary date of the GSA Mentor-Protégé Program), the prime contractor and protégé, as appropriate, will formally brief the GSA Mentor-Protégé Program Manager, the technical Program Manager, and the contracting officer regarding Mentor-Protégé Program accomplishments pertaining to the approved Agreement. 519.7017 Contract clauses.

(a)The contracting officer shall insert the clause at 552.219-75, GSA Mentor-Protégé Program, in all unrestricted solicitations and contracts that exceed the simplified acquisition threshold.

(b)The contracting officer shall insert the clause at 552.219-76, Mentor Requirements and Evaluation, in contracts anticipated to exceed the simplified acquisition threshold. PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 3. Add sections 552.219-XX and 552.219-YY to read as follows: 552.219-XX GSA Mentor-Protégé Program. As prescribed in 519.7017(a), insert the following clause: GSA Mentor-Protégé Program

(a)Prime Contractors, including small businesses, are encouraged to participate in the GSA Mentor-Protégé Program for the purpose of providing developmental assistance to eligible protégé entities to enhance their capabilities and increase their participation in GSA contracts.

(b)The Program consists of—

(1)Mentor firms, which are large prime Contractors with at least one active subcontracting plan, or which are eligible small businesses;

(2)Protégés, which are subcontractors to the prime Contractor, include small business concerns, small disadvantaged business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, and women-owned small business concerns meeting the qualifications specified in Subpart 519.70; and

(3)Mentor-protégé Applications and Agreements, approved by the Mentor-Protégé Program Manager in the GSA Office of Small Business Utilization (OSBU).

(c)Mentor participation in the Program means providing technical, managerial and financial assistance to aid protégés in developing requisite high-tech expertise and business systems to compete for and successfully perform GSA contracts and subcontracts.

(d)Contractors interested in participating in the Program are encouraged to read GSAR Subpart 19.7 and to contact the GSA Office of Small Business Utilization (E), Washington, DC 20405,

(202)501-1021, for further information. (End of clause) 552.219-YY Mentor Requirements and Evaluation. As prescribed in 519.7017(b), insert the following clause: Mentor Requirements and Evaluation

(a)The purpose of the GSA Mentor-Protégé Program is for a GSA prime Contractor to provide developmental assistance to certain subcontractors qualifying as protégés. Eligible protégés include small business concerns, small disadvantaged business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, and women-owned small business concerns meeting the qualifications specified in 519.7007. The Program requires an Application process and an Agreement between the mentor and the protégé. See GSAR Subpart 519.70 for more information.

(b)GSA will evaluate a GSA mentor's performance on the following factors:

(1)Specific actions taken by the Contractor, during the evaluation period, to increase the participation of its protégé as a subcontractor and supplier.

(2)Specific actions taken by the Contractor during this evaluation period to develop the technical and corporate administrative expertise of its protégé as defined in the Agreement.

(3)To what extent the protégé has met the developmental objectives in the Agreement.

(4)To what extent the firm's participation in the GSA Mentor-Protégé Program resulted in the protégé receiving competitive contract(s) and subcontract(s) from private firms other than the mentor, and from agencies.

(c)Semi-annual reports shall be submitted by a GSA the mentor to the GSA Mentor-Protégé Program Manager, GSA Office of Small Business Utilization (E), Washington, DC 20405. The reports must include information as outlined in paragraph

(b)of this clause.

(d)A GSA mentor will notify the GSA Mentor-Protégé Program Manager and the Contracting Officer, in writing, at least 30 days in advance of the mentor firm's intent to voluntarily withdraw from the GSA Program or terminate the Agreement, or upon receipt of a protégé’s notice to withdraw from the Program.

(e)GSA mentor and protégé firms will submit a “lessons learned” evaluation to the GSA Mentor-Protégé Program Manager at the conclusion of the Mentor-Protégé Agreement. At the end of each year in the GSA Mentor-Protégé Program, the mentor and protégé, as appropriate, will formally brief the GSA Mentor-Protégé Program Manager, the technical Program Manager, and the Contracting Officer during a formal Program review regarding Program accomplishments as pertains to the approved Agreement.

(f)GSA has the authority to exclude mentor or protégé firms from participating in the GSA Program. The Contracting Officer or technical Program Manager can recommend exclusion and the length of exclusion from the Program. These actions shall be approved by the GSA Mentor-Protégé Program Manager. If GSA has good cause to exclude a mentor or a protégé from the Program, the GSA Office of Small Business Utilization will deliver to the Contractor a Notice specifying the reason for Program exclusion and the effective date. The exclusion from the Program does not constitute a termination of the subcontract between the mentor and the protégé. A plan for accomplishing the subcontract effort should the Agreement be terminated shall be submitted with the Agreement as required in 519.7011(j).

(g)Subcontracts awarded to GSA protégé firms under this Program are exempt from competition requirements, notwithstanding 52.244-5. However, price reasonableness should still be determined. (End of clause) [FR Doc. E8-12923 Filed 6-9-08; 8:45 am] BILLING CODE 6820-61-S 73 112 Tuesday, June 10, 2008 Notices DEPARTMENT OF AGRICULTURE Office of the Secretary Privacy Act System of Records; APHIS National Animal Identification System (NAIS); Notice of Indefinite Suspension of Effective Date AGENCY: Office of the Secretary, USDA. ACTION: Proposed new system of records notice; notice of indefinite suspension of effective date. SUMMARY: This notice suspends indefinitely the effective date for the proposed new Privacy Act system of records entitled “National Animal Identification System (NAIS), USDA/APHIS-16,” published at 73 FR 23412 on April 30, 2008. DATES: This notice of suspension is hereby effective immediately. FOR FURTHER INFORMATION CONTACT: Ms. Barbara S. Good, Attorney-Advisor, Office of the General Counsel, General Law Division, Room 3311 South Agriculture Building, 1400 Independence Avenue, SW., Washington, DC 20250-1415. Ms. Good may also be reached at 202-720-8045, or *barbara.good@ogc.usda.gov.* SUPPLEMENTARY INFORMATION: Although USDA published notice under the Privacy Act of this proposed new system with an effective date of June 9, 2008, in an intervening civil action entitled “Mary-Louise Zanoni v. United States Department of Agriculture, Civil Action No.: 08-939 (EGS),” the U.S. District Court District of Columbia has ordered USDA to transmit a notice to the **Federal Register** suspending the effective date of June 9, 2008, pending further order of the Court. This notice reflects compliance with the District Court's order of June 4, 2008, to suspend the effective date of the notice of new Privacy Act system. *Report on a New System of Records:* A report on this indefinite suspension of the effective date for a proposed new system of records, required by 5 U.S.C. 552a(r), as implemented by OMB Circular A-130, was sent to the Chairman, Committee on Homeland Security and Governmental Affairs, United States Senate; the Chairman, Committee on Oversight and Government Reform, House of Representatives; and the Administrator, Office of Information and Regulatory Affairs, Office of Management and Budget. Dated: June 6, 2008. Edward T. Schafer, Secretary. [FR Doc. E8-13065 Filed 6-9-08; 8:45 am] BILLING CODE 3410-34-P DEPARTMENT OF AGRICULTURE Commodity Credit Corporation 2008-Crop Marketing Assistance Loans and Loan Deficiency Payments for Loan Commodities Except Cotton and Peanuts AGENCY: Commodity Credit Corporation, USDA. ACTION: Notice. SUMMARY: The Commodity Credit Corporation

(CCC)will extend Marketing Assistance Loans

(MAL)and Loan Deficiency Payments

(LDP)for the 2008 crop. The loan commodities covered by this **Federal Register** Notice include: wheat, corn, grain sorghum, barley, oats, soybeans, rice, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, graded and non-graded wool, mohair, honey, dry peas, lentils, and small chickpeas. As a result of this notice, CCC will be able to commence administration of 2008-crop MAL and LDP provisions and announce applicable 2008-crop loan rates, schedules of premiums and discounts, and other related rates. DATES: *Effective Date:* June 5, 2008. FOR FURTHER INFORMATION CONTACT: Candace Thompson, Director, Price Support Division, Farm Service Agency, USDA, STOP 0512, 1400 Independence Avenue, SW., Washington, DC 20250-0512; telephone:

(202)720-7901 or fax:

(202)690-3307; e-mail: *candy.thompson@wdc.usda.gov.* Persons with disabilities who require alternative means for communication (Braille, large print, audiotape, etc.) should contact the USDA Target Center at

(202)720-2600 (voice and TDD). SUPPLEMENTARY INFORMATION: CCC administers the loan program including MAL and LDP, which provides short-term financing to allow farmers to pay their bills soon after harvest and facilitate orderly marketing throughout the rest of the year. The loan program also provides significant income support when market prices are below statutory loan rates. Current regulations for MAL and LDP apply to the 2002 through 2007 crop years. The Food, Conservation, and Energy Act of 2008 (Pub. L. 110-234) (2008 Farm Bill) authorized the continuation of MAL and LDP, under the regulations found at 7 CFR parts 1421, 1425, and 1434, for all loan commodities for the 2008 through 2012 crops. With the pending harvest of 2008-crop loan commodities, this notice announces that CCC will implement immediately MAL and LDP provisions for 2008-crop wheat, corn, grain sorghum, barley, oats, soybeans, rice, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, graded and non-graded wool, mohair, honey, dry peas, lentils, and small chickpeas based on the current regulation in: • 7 CFR Part 1421, Grains and Similarly Handled Commodities—Marketing Assistance Loans and Loan Deficiency Payments for the 2002 through 2007 Crop Years; • 7 CFR Part 1425, Cooperative Marketing Associations; and • 7 CFR Part 1434, Nonrecourse Marketing Assistance Loan and LDP Regulations for Honey. CCC plans to amend the applicable regulations to reflect changes provided by the 2008 Farm Bill by August 31, 2008. In addition, as a result of this notice, CCC will be able to announce applicable 2008-crop loan rates, schedules of premiums and discounts, and other related rates. Environmental Review FSA has determined that this change would not constitute a major Federal action that would significantly affect the quality of the human environment. Therefore, in accordance with the 7 CFR Part 799, Environmental Quality and Related Environmental Concerns— Compliance with the National Environmental Policy Act, implementing the regulations of the Council on Environmental Quality (40 CFR parts 1500-1508), no environmental assessment or environmental impact statement will be prepared. Signed at Washington, DC, on June 3, 2008. Teresa C. Lasseter, Executive Vice President, Commodity Credit Corporation. [FR Doc. 08-1334 Filed 6-5-08; 12:00 pm]

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