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Code · REGISTER · 2011-06-07 · PROPOSED RULES · Agriculture Agriculture Department See Food Safety and Inspection Service See Rural Business-Cooperative Service Arts and Humanities, National Foundation See National Foundation on the Arts and the Hu · Unknown

Unknown. Final rule

6,066 words·~28 min read·/register/2011/06/07/2011-13993

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-2011-06-07.xml --- 76 109 Tuesday, June 7, 2011 Contents Agriculture Agriculture Department See Food Safety and Inspection Service See Rural Business-Cooperative Service Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Census Bureau Census Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: 2012 Economic Census of Island Areas, 32950 2011-13969 Commerce Commerce Department See Census Bureau See International Trade Administration See National Oceanic and Atmospheric Administration Commodity Futures Commodity Futures Trading Commission PROPOSED RULES Adaptation of Regulations to Incorporate Swaps, 33066-33113 2011-12270 Mixed Swaps;
Security-Based Swap Agreement Recordkeeping: Definitions of Swap, Security-Based Swap, and Security-Based Swap Agreement; Correction, 32880 2011-13976 Defense Department Defense Department See Navy Department NOTICES 36(b)(1) Arms Sales Notifications, 32958-32961 2011-13925 Department of Transportation See Pipeline and Hazardous Materials Safety Administration Education Education Department NOTICES Grant Awards Programs: Deadline Dates for Receipt of Applications, Reports, and Other Records, 32961-32966 2011-14016 Proposed Extensions and Waivers:
National Center to Enhance Professional Development of School Personnel, etc., 32968-32969 2011-14023 National Early Childhood Technical Assistance Center, 32967-32968 2011-14022 National Technical Assistance and Dissemination Center for Children Who are Deaf-Blind, 32969-32971 2011-14019 Proposed Priorities: National Institute on Disability and Rehabilitation Research, 32971-32974 2011-14024 Employment and Training Employment and Training Administration NOTICES Requests for Certification of Compliance:
Rural Industrialization Loan and Grant Program, 32989 2011-13936 2011-13937 Workforce Investment Act of 1998; Incentive Funding Availabilities: Program Year 2009 Performance; Correction, 32990-32991 2011-13938 Employment Standards Employment Standards Administration See Wage and Hour Division Environmental Protection Environmental Protection Agency PROPOSED RULES Control of Emissions from New Highway Vehicles and Engines: Guidance on Certification Requirements for Heavy-Duty Diesel Engines Using Selective Catalytic Reduction Technology, 32886-32896 2011-13851 Executive Office of the President See Presidential Documents Federal Aviation Federal Aviation Administration PROPOSED RULES Proposed Modifications of Class E Airspace:
Forsyth, MT, 32879-32880 2011-13944 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: FAA Entry Point Filing Form - International Registry, 33021-33022 2011-13946 Implementation to Equal Access to Justice Act, 33022 2011-13947 Meetings: RTCA Special Committee 159; Global Positioning System, 33022-33023 2011-13945 Federal Communications Federal Communications Commission RULES Cable Landing Licenses; Correction, 32866-32867 2011-14009 PROPOSED RULES Provisions of Fixed and Mobile Broadband Access, Educational and Other Advanced Services: 2150-2162 and 2500-2690 MHz Bands, 32901-32906 2011-14001 NOTICES Meetings;
Sunshine Act, 32974 2011-14074 Federal Emergency Federal Emergency Management Agency PROPOSED RULES Proposed Flood Elevation Determinations, 32896-32901 2011-14021 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Write Your Own Program, 32981-32982 2011-13140 Emergencies and Related Determinations: Alabama, 32982 2011-14008 Major Disasters and Related Determinations: Alabama, 32982-32983 2011-14007 Arkansas, 32984-32985 2011-14014 Georgia, 32985 2011-14018 Kentucky, 32985-32986 2011-14017 Mississippi, 32984 2011-14010 Tennessee, 32983 2011-14012 Federal Maritime Federal Maritime Commission NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals, 32974-32975 2011-14002 2011-14005 Federal Motor Federal Motor Carrier Safety Administration PROPOSED RULES Inspection, Repair, and Maintenance: Driver-Vehicle Inspection Report for Intermodal Equipment, 32906-32911 2011-13935 Federal Reserve Federal Reserve System NOTICES Change in Bank Control Notices; Acquisitions of Shares of Bank or Bank Holding Company, 32975-32976 2011-13948 Fish Fish and Wildlife Service RULES Endangered and Threatened Wildlife and Plants:
Designation of Critical Habitat for Roswell Springsnail, Koster's Springsnail, Noel's Amphipod, and Pecos Assiminea, 33036-33064 2011-13227 PROPOSED RULES Endangered and Threatened Wildlife and Plants: Petition to List Striped Newt as Threatened, 32911-32929 2011-13911 Food and Drug Food and Drug Administration RULES Guidance for Industry and Investigators on Enforcement of Safety Reporting Requirements: Investigational New Drug Applications and Bioavailability/Bioequivalence Studies;
Availability, 32863-32864 2011-13950 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Infant Formula Recall Regulations, 32976-32977 2011-13941 Food Safety Food Safety and Inspection Service NOTICES International Standard-Setting Activities, 32933-32943 2011-13985 Health and Human Health and Human Services Department See Food and Drug Administration See National Institutes of Health Homeland Homeland Security Department See Federal Emergency Management Agency NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals: Telecommunications Service Priority System, 32980-32981 2011-13953 Interior Interior Department See Fish and Wildlife Service See National Park Service NOTICES Meetings: Vendor Outreach Workshop for Small Businesses in Texas Intermountain Region, 32986 2011-13998 Internal Revenue Internal Revenue Service RULES Extension of Withholding to Certain Payments Made by Government Entities; Correction:, 32864-32865 2011-13932 PROPOSED RULES Encouraging New Markets Tax Credit Non-Real Estate Investments, 32880-32882 2011-13981 New Markets Tax Credit Non-Real Estate Investments:
Public Hearing, 32882-32885 2011-13978 Withholding on Payments by Government Entities to Persons Providing Property or Services: Correction, 32885-32886 2011-13928 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33023-33026 2011-13858 2011-13861 2011-13929 2011-13930 2011-13931 International Trade Adm International Trade Administration NOTICES Coal Mining Equipment, Technologies and Services Trade Mission to China and Mongolia, 32951-32953 2011-13921 Transportation Infrastructure/Multimodal Products and Services Trade Mission to Doha, Qatar, and Abu Dhabi and Dubai, United Arab Emirates, 32953-32956 2011-13923 International Trade Com International Trade Commission NOTICES Complaints:
Solicitation of Comments Relating to Public Interest, 32987-32988 2011-13942 Labor Department Labor Department See Employment and Training Administration See Wage and Hour Division NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Grain Handling Facilities, 32988-32989 2011-13979 National Foundation National Foundation on the Arts and the Humanities NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 2011-13933 32992-32993 2011-13934 National Institute National Institutes of Health NOTICES Meetings:
Eunice Kennedy Shriver National Institute of Child Health and Human Development, 32979-32980 2011-13990 2011-13991 2011-13992 National Institute of Allergy and Infectious Diseases, 32980 2011-13986 National Institute of Diabetes and Digestive and Kidney Diseases, 32978-32979 2011-13987 National Institute of General Medical Sciences, 32979-32980 2011-13988 2011-13989 National Institute of Nursing Research, 32978 2011-14015 National Institute on Aging, 32977-32978 2011-14011 National Institute on Alcohol Abuse and Alcoholism, 32978 2011-14013 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of Northeastern United States: 2011 Specifications for Spiny Dogfish Fishery, 32873-32876 2011-13974 Fisheries Off West Coast States:
West Coast Salmon Fisheries; 2011 Management Measures; Correction, 32876-32877 2011-13975 PROPOSED RULES Western Pacific Pelagic Fisheries: American Samoa Longline Gear Modifications to Reduce Turtle Interactions, 32929-32932 2011-13972 NOTICES Meetings: Fisheries of South Atlantic; Southeast Data, Assessment, and Review, 32956-32957 2011-13997 Gulf of Mexico Fishery Management Council, 32956 2011-13996 Membership Solicitations; Hydrographic Services Review Panel, 32957-32958 2011-14025 National Park National Park Service NOTICES Meetings:
National Capital Memorial Advisory Commission, 32986-32987 2011-13999 National Science National Science Foundation NOTICES Meetings: Toward Innovative Spectrum-Sharing Technologies, etc.; Technical Workshop, 32993 2011-13943 National Transportation National Transportation Safety Board NOTICES Meetings; Sunshine Act, 32993-32994 2011-14121 Navy Navy Department RULES Certifications and Exemptions under International Regulations for Preventing Collisions at Sea, 1972, 32865-32866 2011-12934 Nuclear Regulatory Nuclear Regulatory Commission PROPOSED RULES Draft Regulatory Guides:
Preoperational Testing of Emergency Core Cooling Systems for Pressurized-Water Reactors, 32878-32879 2011-13970 NOTICES Combined License Applications: Nine Mile Point 3 Nuclear Project, LLC and UniStar Nuclear Operating Services, LLC, 32994-32996 2011-13816 Personnel Personnel Management Office RULES General Schedule Locality Pay Areas, 32859-32863 2011-13993 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Designation of Beneficiary (FERS), 32996 2011-13973 Health Benefits Election Form, 32996-32997 2011-13980 Request for Change to Unreduced Annuity, 32997 2011-13982 Privacy Act;
Systems of Records, 32997-33002 2011-13971 Pipeline Pipeline and Hazardous Materials Safety Administration RULES Hazardous Materials Requirements for Storage of Explosives During Transportation, 32867-32873 2011-13837 NOTICES Safety Advisories: Unauthorized Marking of Compressed Gas Cylinders, 33023 2011-13952 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: African-American Music Appreciation Month (Proc. 8684), 32851-32852 2011-14170 Great Outdoors Month (Proc. 8687), 32857-32858 2011-14185 Lesbian, Gay, Bisexual, and Transgender Pride Month (Proc. 8685), 32853-32854 2011-14174 National Caribbean-American Heritage Month (Proc. 8686), 32855-32856 2011-14182 National Oceans Month (Proc. 8688), 33119-33120 2011-14237 ADMINISTRATIVE ORDERS Government Agencies and Employees:
Health and Human Services, Department of; Public Health Services, Ready Reserve Corps, Appointment Authority (Memorandum of May 31, 2011), 33115-33117 2011-14236 Railroad Retirement Railroad Retirement Board NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33002-33003 2011-14006 Rural Business Rural Business-Cooperative Service NOTICES Rural Cooperative Development Grant Application Deadlines, 32943-32949 2011-13927 Securities Securities and Exchange Commission PROPOSED RULES Mixed Swaps;
Security-Based Swap Agreement Recordkeeping: Definitions of Swap, Security-Based Swap, and Security-Based Swap Agreement; Correction, 32880 2011-13976 NOTICES Applications for Orders under Section 26(c) of Investment Company Act of 1940, as Amended: TIAA-CREF Life Insurance Co., et al., 33003-33011 2011-13995 Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, 33014-33015 2011-13994 NASDAQ OMX BX Inc. LLC, 33011-33012 2011-13926 NASDAQ OMX PHLX LLC, 33012-33013, 33015-33017 2011-13939 2011-13940 NASDAQ Stock Market LLC, 33017-33018 2011-13949 Sunshine Act Meeting, 33018 2011-14034 State Department State Department NOTICES Waiver of Restriction on Assistance to Royal Government of Cambodia, 33019 2011-14000 Susquehanna Susquehanna River Basin Commission NOTICES Projects Approved for Consumptive Uses of Water, 33019-33021 2011-14026 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See Pipeline and Hazardous Materials Safety Administration Treasury Treasury Department See Internal Revenue Service See United States Mint U.S.
Mint United States Mint NOTICES Pricing for 2011 American Eagle Silver Proof Coin, 33026-33027 2011-13954 Veteran Affairs Veterans Affairs Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Exclusion of Children's Income, 33028 2011-13959 Certification of School Attendance - REPS, 33030-33031 2011-13964 Certification of School Attendance or Termination, 33027-33028 2011-13958 Disability Benefits Questionnaires - Group 1, 33029-33030 2011-13962 Information from Remarried Widow/er, 33030 2011-13963 Information Regarding Apportionment of Beneficiary's Award, 33029 2011-13961 National Practitioner Data Bank Regulation, 33032 2011-13967 Request for Contact Information, 33031 2011-13965 Requirements for Interest Rate Reduction Refinancing Loans, 33028-33029 2011-13960 Statement of Marital Relationship, 33027 2011-13956 Supplemental Income Questionnaire (For Philippine Claims Only), 33027 2011-13957 Veteran's Application for Increased Compensation Based on Unemployability, 33031-33032 2011-13966 Veteran's Supplemental Application for Assistance in Acquiring Specially Adapted Housing, 33032-33033 2011-13968 Wage Wage and Hour Division NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals: Family Medical Leave Act Employee and Employer Surveys, 32991-32992 2011-13977 Separate Parts In This Issue Part II Interior Department, Fish and Wildlife Service, 33036-33064 2011-13227 Part III Commodity Futures Trading Commission, 33066-33113 2011-12270 Part IV Presidential Documents, 33115-33117, 33119-33120 2011-14237 2011-14236 Reader Aids Consult the Reader Aids section at the end of this page 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. 76 109 Tuesday, June 7, 2011 Rules and Regulations OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 531 RIN 3206-AM25 General Schedule Locality Pay Areas AGENCY: U.S. Office of Personnel Management. ACTION: Final rule. SUMMARY: On behalf of the President's Pay Agent, the U.S.
Office of Personnel Management is issuing final regulations on the locality pay program for General Schedule employees. The regulations, which became applicable as an interim rule on January 2, 2011, established separate locality pay areas for the States of Alaska and Hawaii and extended coverage of the Rest of U.S. locality pay area to include American Samoa, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Territory of Guam, the U.S. Virgin Islands, and all other U.S. possessions listed in 5 CFR 591.205, applicable on the first day of the first pay period that began on or after January 1, 2011.
DATES: *Effective on* July 7, 2011 we are adopting as a final rule, with minor changes, the interim rule published at 75 FR 60285 on September 30, 2010. *Applicability Date:* The regulations were applicable on the first day of the first pay period beginning on or after January 1, 2011. FOR FURTHER INFORMATION CONTACT: Allan Hearne,
(202)606-2838; FAX:
(202)606-4264; e-mail: *pay-leave-policy@opm.gov* . SUPPLEMENTARY INFORMATION: Section 5304 of title 5, United States Code, authorizes locality pay for General Schedule
(GS)employees with duty stations in the United States and its territories and possessions. The Non-Foreign Area Retirement Equity Assurance Act of 2009 (NAREAA), Public Law 111-84, title XIX, subtitle B (October 28, 2009), extended locality pay to the States of Alaska and Hawaii and the U.S. territories and possessions effective in January 2010. While the statute included a sense of the Congress statement that one locality pay area cover the entire State of Alaska and one cover the entire State of Hawaii, it did not actually establish any new locality pay areas. Section 5304(f) of title 5, United States Code, authorizes the President's Pay Agent (the Secretary of Labor, the Director of the Office of Management and Budget, and the Director of the Office of Personnel Management (OPM)) to determine locality pay areas. The boundaries of locality pay areas must be based on appropriate factors, which may include local labor market patterns, commuting patterns, and the practices of other employers. The Pay Agent must give thorough consideration to the views and recommendations of the Federal Salary Council (Council), a body composed of experts in the fields of labor relations and pay policy and representatives of Federal employee organizations. The President appoints the members of the Council, which submits annual recommendations to the Pay Agent about the locality pay program. In its interim rule, the Pay Agent concluded that separate locality pay areas should be established for the States of Alaska and Hawaii because we have non-Federal salary survey data collected by the Bureau of Labor Statistic
(BLS)in its National Compensation Survey
(NCS)program showing pay disparities between General Schedule
(GS)and non-Federal pay well above that for the Rest of U.S.
(RUS)locality pay area. Such action also coincides with the sense of the Congress statement in the NAREAA that these locations each be covered by a single separate locality pay area. The Pay Agent also concluded that the other non-foreign areas, which are not covered by the NCS program, should be treated like other locations in the United States where pay levels are lower than in the RUS area, or that cannot be surveyed separately and included them in the RUS area. Development of New Survey Methodology In response to earlier requests of the Federal Salary Council, BLS has developed a method for using data from its much larger Occupational Employment Statistics
(OES)program in conjunction with National Compensation Survey
(NCS)data. The method assesses the impact of level of work on pay using NCS data so that OES data can be used to compare GS and non-Federal pay for the same levels of work in a geographic area as required by the locality pay statute. The President's Fiscal Year 2011 budget included a proposal to use this new alternative approach for locality pay in order to free up BLS resources for use in other programs while extending the estimation of pay gaps to areas that are not present in the NCS sample. The Federal Salary Council and the Pay Agent plan to use the new OES model in the future. While BLS does not cover Guam, Puerto Rico, or the U.S. Virgin Islands under the NCS program, BLS does have a robust sample for these locations and for Anchorage and Honolulu under OES. The Federal Salary Council evaluated comparisons of GS and non-Federal pay for these locations before it submitted its views on the interim rule. Here are the results: Comparison of GS and Non-Federal Pay Using OES Data—March 2010 Location Non-Federal pay/GS pay disparity (percent) Location minus RUS disparity (percent) Anchorage 53.99 25.85 Honolulu 39.19 11.05 Guam −0.46 −28.60 Puerto Rico −15.31 −43.45 U.S. Virgin Islands 15.24 −12.90 Rest of U.S. 28.14 NA The results indicate that non-Federal pay levels in Anchorage and Honolulu are well above those in the RUS area while non-Federal pay levels in Guam, Puerto Rico, and the U.S. Virgin Islands are well below those in the RUS area. Federal Salary Council Comments The Federal Salary Council met during the comment period on the interim regulations and submitted the following comments supporting the Pay Agent's interim rule: “The Non-Foreign Area Retirement Equity Assurance Act of 2009 (the Act) extended locality pay to the “non-foreign” areas. The Pay Agent issued an interim regulation on September 30, 2010, making Alaska and Hawaii separate whole-State locality pay areas and adding American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, the U.S. Virgin Islands, and U.S. territories and possessions to the Rest of U.S. locality pay area. The Pay Agent concluded Alaska and Hawaii should be separate areas based on NCS salary surveys in Anchorage and Honolulu that show higher non-Federal pay levels than in the RUS area and a sense of Congress contained in the Act that Alaska and Hawaii should be separate whole-State areas. BLS does not conduct surveys under NCS in any of the other “non-foreign” areas. The Council concurs with the Pay Agent's action to make Alaska and Hawaii separate whole-State locality pay areas and include the other areas in the RUS locality pay area. BLS does include Guam, Puerto Rico, and the U.S. Virgin Islands under the OES program and applied its OES model to these locations. The results are included in Attachment 2. Based on the OES model, non-Federal pay levels in these locations are below those in the RUS area. However, since RUS is an average, it is likely about half of RUS is also below the average. Our policy in the past has been that the RUS locality rate should be the floor; no location should receive less than the RUS rate. We believe this is a good policy and should continue and apply to Guam, Puerto Rico, and the U.S. Virgin Islands. The Council's recommendations are posted at *http://www.opm.gov/oca/fsc/recommendation10.pdf* . Comments Received OPM received 49 comments on the interim rule, including comments from an attorney representing employees in *Caraballo* v. *U.S.* , Members of Congress representing American Samoa and Guam, and the Guam Federal Executive Association. Comments included: • Some supported separate whole-State pay areas for Alaska and Hawaii as provided in the regulations. • Some believe a higher rate should be approved for remote areas in Alaska. (OPM notes, however, that locality pay must be based on pay comparisons, not remoteness.) • Some believe the statutory cap on locality pay is unfair. (OPM notes, however, that the caps are imposed by statute.) • Some believe employees in the Northern Mariana Islands and Guam should receive a higher rate than Alaska and Hawaii due to remoteness and isolation. (OPM notes, however, that locality pay must be based on pay comparisons, not remoteness.) • Some believe Hawaii should receive Washington-Baltimore locality pay. (OPM notes, however, that locality pay salary survey results show that is not warranted by local labor market rates.) Many of the comments expressed the view that Pacific locations should receive either the Hawaii or Washington-Baltimore locality pay rate due to the effect of remoteness and isolation from the mainland. We respond in detail below to comments submitted by the attorney, since they expressed similar views and were the most detailed. Comment 1 “It is my view that including transoceanic non-foreign areas in the Rest of U.S. locality pay area is contrary to the fundamental premise of the *Caraballo* settlement.” and “The foundation of the *Caraballo* settlement is the recognition and agreement by the parties that rate-based cost comparisons are insufficient to provide a true picture of the economies of the non-foreign areas, which are remote and isolated from the rest of the country in many ways. This is just as true for salary costs as for living costs.” OPM Response We conclude the fundamental premise of *Caraballo* is equivalent to its foundation. The *Caraballo* settlement is confined to the former cost-of-living allowance
(COLA)program and doesn't apply to the GS locality pay program. The locality pay statute requires locality pay based on comparisons of GS and non-Federal pay for the same levels of work, 5 U.S.C. 5304, not on the *Caraballo* settlement, living costs, or a view of the “true picture of the economies.” Comment 2 “Without an adjustment to account for various conditions which are unique to such areas (including those described below), the living standards afforded by the locality pay rate will be lower than Congress intended.” OPM Response We find that Congress did not prescribe a policy to address any particular living standard, did not authorize consideration of living costs in setting locality pay, and did not cite living standards in the locality pay statute. See 5 U.S.C. 5304. The locality pay statute authorizes locality pay to make General Schedule rates of pay “substantially equal (when considered in the aggregate) to the rates paid to non-Federal workers for the same levels of work in the same locality.” 5 U.S.C. 5304. Adding separate adjustments above local labor market rates to account for various conditions which are unique to such areas isn't contemplated in the locality pay statute and would cause GS rates of pay to be higher than market rates, not “substantially equal when considered in the aggregate.” See 5 U.S.C. 5304. Comment 3 “If, for administrative reasons, a non-foreign area is to be included in the locality pay area established for a broader region, then the two places should have an affinity of some kind.” and “However, lumping a transoceanic non-foreign area together with Montana and Wyoming makes no sense at all.” and “The choice made in this rule is the least costly for the Government, and there does not appear to be any other basis for it.” OPM Response We believe these locations do have an affinity. Based on available salary survey data, pay levels in these locations are low. Both OPM and the Federal Salary Council evaluated available BLS pay data for Guam, Puerto Rico, and the U.S. Virgin Islands and found the comparison of GS to non-Federal pay in those locations to be below the results for the Rest of U.S. locality pay area. In this way, Guam, Puerto Rico, and the U.S. Virgin Islands were treated exactly like a mainland U.S. location where survey results were below RUS—as the Federal Salary Council has recommended, they were included in the RUS locality pay area. Likewise, other locations that cannot be evaluated separately are also included in the RUS area, whether they are remote on the mainland or remote in the Pacific. Comment 4 “An alternative choice of a locality pay area for the transoceanic non-foreign areas might be the new locality pay area which covers the Hawaiian Islands.” OPM Response Pay survey findings indicate non-Federal pay levels in Honolulu are higher than those in Guam and the RUS area and thus warrant a separate locality pay area. Pay survey results in Guam indicate low non-Federal pay levels. There is nothing in the pay statute that requires the Government to pay more than warranted by the local labor market. See 5 U.S.C. 5304. Comment 5 “However, in light of the COLA program history, the Washington, D.C. area is a better choice than Hawaii as the locality pay area for other transoceanic non-foreign areas at the present time.” and “The reason for this preference is that the Federal Salary Council has acknowledged the private salary data from both Alaska and Hawaii to be unsatisfactory in certain respects and has urged increased funding for survey enhancements in those areas.” and “There is a wealth of statistical data comparing living costs between the non-foreign areas and Washington, DC, and this data can be used to correlate locality pay rates in the non-foreign areas (including Hawaii and Alaska) with the rate in Washington, D.C.” OPM Response The COLA program history is not relevant to the administration of the locality pay program. The COLA statute predates locality pay by 42 years and authorized payments in non-foreign areas made in consideration of living costs substantially higher than in the District of Columbia or conditions of environment which differ substantially from conditions in the continental United States and warrant payments as a recruitment incentive. See 5 U.S.C. 5304 and 5 U.S.C. 5941. Congress chose to phase out COLA and replace it with locality pay. Public Law 111-84, title XIX, subtitle B (October 28, 2009). Locality pay is based solely on pay comparisons for the same levels of work. Living costs and conditions of environment are not mentioned in the locality pay statute. 5 U.S.C. 5304. The Federal Salary Council did request BLS increase its NCS sample in Honolulu and reinstate its NCS survey in Anchorage. However, as described above, the Federal Salary Council and the Pay Agent are in the process of switching to a new survey methodology using survey data from the OES program. There is nothing wrong with the OES sample in any of the non-foreign areas surveyed, including Guam, Puerto Rico, and the U.S. Virgin Islands. The Council and the Pay Agent reviewed OES data for Guam, Puerto Rico, and the U.S. Virgin Islands, not NCS data. Comment 6 “Unfortunately, OPM has provided inadequate notice of this rule, and inadequate opportunity for comments and further investigation with respect to this critical issue.” OPM Response The comments did not explain what was inadequate about the notice or opportunity for comment. Interim final rules are permitted under the regulatory process if necessary to comply with statutory deadlines. OPM accepted and received comments on the interim rule through November 29, 2010, including the attorney's comments. The NAREAA required that locality pay areas for COLA areas be established in time for locality payments in January 2011. Public Law 111-84, title XIX, subtitle B (October 28, 2009). OPM published the rule as an interim rule so that the rule could go into effect before January 2011. This timeline constraint was specifically cited in the interim rule. FR Vol. 75 No. 189, page 60285, September 30, 2010. Comment 7 The attorney, and other commenters, are concerned that living cost surveys indicate living costs are high in the COLA areas while pay surveys indicate pay levels are not so high. He adds “However, OPM has made no attempt to reconcile the results of the two approaches, much less to explain the diametrically opposite results they yield * * *”. OPM Response The locality pay statute bases locality pay on comparisons of General Schedule and non-Federal pay for the same levels of work, 5 U.S.C. 5304, not on living costs, at the heart of the *Caraballo* settlement. Living costs are one of many factors affecting pay levels in a location. The extent to which living costs affect or don't affect the supply and price of labor is reflected in area labor costs and salary survey results. Other relevant factors affecting labor costs include the number, types, and skill sets of workers in the area, the size and industry composition of employers, the degree of unionization, and a host of other factors. The locality pay statute does not provide for or require a means for OPM or the Pay Agent to reconcile differences between living costs and salary surveys. See 5 U.S.C. 5304. Comment 8 The attorney believes that “Part of the explanation for the divergence in results between salary-cost surveys and living-cost surveys undoubtedly lies in the insularity of the transoceanic areas and the strong racial, ethnic, and cultural ties which bind together the residents of those places and inhibit out-migration in search of better paying jobs elsewhere.” OPM Response The locality pay statute bases locality pay on comparisons of General Schedule
(GS)and non-Federal pay for the same levels of work. 5 U.S.C. 5304. It does not base locality pay on out-migration patterns or racial, ethnic, and cultural ties. 5 U.S.C. 5304. Comment 9 “The locality pay system is not intended to allow the Government to take advantage of depressed conditions in a locality pay area but rather to increase salaries—and thus the performance and retention—of federal workers everywhere in the nation. Yet this rule will have the effect of dragging down the living standards of federal employees in the transoceanic non-foreign areas.” OPM Response The statute bases locality pay on comparisons of General Schedule
(GS)and non-Federal pay for the same levels of work in order to make GS and non-Federal pay substantially equal when considered in the aggregate. 5 U.S.C. 5304. It does not require adjusting survey results to compensate for “depressed conditions” whether such conditions are in the Pacific and attributable to distance from the mainland or ethnic factors, in Detroit and due to conditions in the auto industry, or in areas of the U.S. impacted by natural disasters. 5 U.S.C. 5304. Likewise, the locality pay statute does not guarantee any particular living standard. 5 U.S.C. 5304. Comment 10 The attorney believes “* * * this rule is not only arbitrary, capricious, and an abuse of discretion under the Administrative Procedure Act, but it is also unlawfully discriminatory against racial and ethnic minorities which have disproportionately large presences * * * in the transoceanic areas * * *” Other commenters made similar comments. OPM Response Based on available data, non-Federal pay levels in these locations are low. Both OPM and the Federal Salary Council evaluated available BLS pay data for Guam, Puerto Rico, and the U.S. Virgin Islands and found the comparison of GS to non-Federal pay in those locations to be below the results for the Rest of U.S. locality pay area. In this way, Guam, Puerto Rico, and the U.S. Virgin Islands were treated exactly like a mainland location where survey results were below RUS. As the Federal Salary Council has recommended, they were included in the RUS locality pay area. Likewise, other locations that cannot be evaluated separately are also included in the RUS area, whether they are remote on the mainland or remote in the Pacific. Impact and Implementation This rule affects rates of pay for about 44,100 civilian white-collar employees in the States of Alaska and Hawaii, American Samoa, the Commonwealths of Puerto Rico and the Northern Mariana Islands, Guam, the U.S. Virgin Islands, and other U.S. possessions. Under the rule, approved GS locality pay rates are higher than in the RUS locality pay area for employees in Alaska and Hawaii. Federal civilian white-collar employees in the U.S. territories and possessions are covered by the RUS GS locality pay rate. Clarification and Updates During the comment period, we noted that the definition of “Continental United States” in section 531.602 and reference to continental U.S. in the definition of employee are no longer needed, so we are removing this out-of-date language. We are also taking this publication opportunity to update the locality pay caps in section 531.606 to be consistent with current law. Executive Order 13563 and Executive Order 12866 The Office of Management and Budget has reviewed this rule in accordance with E.O. 13563 and 12866. Paperwork Reduction Act This document does not contain proposed information collection requirements subject to the Paperwork Reduction Act of 1995, Public Law 104-13. Regulatory Flexibility Act I certify that these regulations will not have a significant economic impact on a substantial number of small entities because they will apply only to Federal agencies and employees. List of Subjects in 5 CFR Part 531 Government employees, Law enforcement officers, Wages. U.S. Office of Personnel Management. John Berry, Director. Accordingly, OPM is adopting as a final rule, with minor changes, the interim rule published at 75 FR 60285 on September 30, 2010 and is amending 5 CFR part 531 as follows: PART 531—PAY UNDER THE GENERAL SCHEDULE 1. The authority citation for part 531 continues to read as follows: Authority: 5 U.S.C. 5115, 5307, and 5338; sec. 4 of Public Law 103-89, 107 Stat. 981; and E.O. 12748, 56 FR 4521, 3 CFR, 1991 Comp., p. 316; Subpart B also issued under 5 U.S.C. 5303(g), 5305, 5333, 5334(a) and (b), and 7701(b)(2); Subpart D also issued under 5 U.S.C. 5335 and 7701(b)(2); Subpart E also issued under 5 U.S.C. 5336; Subpart F also issued under 5 U.S.C. 5304 and 5305; E.O. 12883, 58 FR 63281, 3 CFR, 1993 Comp., p. 682; and E.O. 13106, 63 FR 68151, 3 CFR, 1998 Comp., p. 224. Subpart F—Locality-Based Comparability Payments 2. In § 531.602, remove the definition of *Continental United States* and revise paragraph
(1)in the definition of *employee.* The revision reads as follows: § 531.602 Definitions. *Employee* * * *
(1)An employee in a position to which 5 U.S.C. chapter 53, subchapter III, applies, including a GM employee, and whose official worksite is located in a locality pay area; and 3. In § 531.603, paragraph
(b)is revised to read as follows: § 531.603 Locality pay areas.
(b)The following are locality pay areas for the purposes of this subpart:
(1)Alaska—consisting of the State of Alaska;
(2)Atlanta-Sandy Springs-Gainesville, GA-AL—consisting of the Atlanta-Sandy Springs-Gainesville, GA-AL CSA;
(3)Boston-Worcester-Manchester, MA-NH-RI-ME—consisting of the Boston-Worcester-Manchester, MA-RI-NH CSA, plus Barnstable County, MA, and Berwick, Eliot, Kittery, South Berwick, and York towns in York County, ME;
(4)Buffalo-Niagara-Cattaraugus, NY—consisting of the Buffalo-Niagara-Cattaraugus, NY CSA;
(5)Chicago-Naperville-Michigan City, IL-IN-WI—consisting of the Chicago-Naperville-Michigan City, IL-IN-WI CSA;
(6)Cincinnati-Middletown-Wilmington, OH-KY-IN—consisting of the Cincinnati-Middletown-Wilmington, OH-KY-IN CSA;
(7)Cleveland-Akron-Elyria, OH—consisting of the Cleveland-Akron-Elyria, OH CSA;
(8)Columbus-Marion-Chillicothe, OH—consisting of the Columbus-Marion-Chillicothe, OH CSA;
(9)Dallas-Fort Worth, TX—consisting of the Dallas-Fort Worth, TX CSA;
(10)Dayton-Springfield-Greenville, OH—consisting of the Dayton-Springfield-Greenville, OH CSA;
(11)Denver-Aurora-Boulder, CO—consisting of the Denver-Aurora-Boulder, CO CSA, plus the Ft. Collins-Loveland, CO MSA;
(12)Detroit-Warren-Flint, MI—consisting of the Detroit-Warren-Flint, MI CSA, plus Lenawee County, MI;
(13)Hartford-West Hartford-Willimantic, CT-MA—consisting of the Hartford-West Hartford-Willimantic, CT CSA, plus the Springfield, MA MSA and New London County, CT;
(14)Hawaii—consisting of the State of Hawaii;
(15)Houston-Baytown-Huntsville, TX—consisting of the Houston-Baytown-Huntsville, TX CSA;
(16)Huntsville-Decatur, AL—consisting of the Huntsville-Decatur, AL CSA;
(17)Indianapolis-Anderson-Columbus, IN—consisting of the Indianapolis-Anderson-Columbus, IN CSA, plus Grant County, IN;
(18)Los Angeles-Long Beach-Riverside, CA—consisting of the Los Angeles-Long Beach-Riverside, CA CSA, plus the Santa Barbara-Santa Maria-Goleta, CA MSA and all of Edwards Air Force Base, CA;
(19)Miami-Fort Lauderdale-Pompano Beach, FL—consisting of the Miami-Fort Lauderdale-Pompano Beach, FL MSA, plus Monroe County, FL;
(20)Milwaukee-Racine-Waukesha, WI—consisting of the Milwaukee-Racine-Waukesha, WI CSA;
(21)Minneapolis-St. Paul-St. Cloud, MN-WI—consisting of the Minneapolis-St. Paul-St. Cloud, MN-WI CSA;
(22)New York-Newark-Bridgeport, NY-NJ-CT-PA—consisting of the New York-Newark-Bridgeport, NY-NJ-CT-PA CSA, plus Monroe County, PA, Warren County, NJ, and all of Joint Base McGuire-Dix-Lakehurst;
(23)Philadelphia-Camden-Vineland, PA-NJ-DE-MD—consisting of the Philadelphia-Camden-Vineland, PA-NJ-DE-MD CSA excluding Joint Base McGuire-Dix-Lakehurst, plus Kent County, DE, Atlantic County, NJ, and Cape May County, NJ;
(24)Phoenix-Mesa-Scottsdale, AZ—consisting of the Phoenix-Mesa-Scottsdale, AZ MSA;
(25)Pittsburgh-New Castle, PA—consisting of the Pittsburgh-New Castle, PA CSA;
(26)Portland-Vancouver-Hillsboro, OR-WA—consisting of the Portland-Vancouver-Hillsboro, OR-WA MSA, plus Marion County, OR, and Polk County, OR;
(27)Raleigh-Durham-Cary, NC—consisting of the Raleigh-Durham-Cary, NC CSA, plus the Fayetteville, NC MSA, the Goldsboro, NC MSA, and the Federal Correctional Complex Butner, NC;
(28)Richmond, VA—consisting of the Richmond, VA MSA;
(29)Sacramento—Arden-Arcade—Yuba City, CA-NV—consisting of the Sacramento—Arden-Arcade—Yuba City, CA-NV CSA, plus Carson City, NV;
(30)San Diego-Carlsbad-San Marcos, CA—consisting of the San Diego-Carlsbad-San Marcos, CA MSA;
(31)San Jose-San Francisco-Oakland, CA—consisting of the San Jose-San Francisco-Oakland, CA CSA, plus the Salinas, CA MSA and San Joaquin County, CA;
(32)Seattle-Tacoma-Olympia, WA—consisting of the Seattle-Tacoma-Olympia, WA CSA, plus Whatcom County, WA;
(33)Washington-Baltimore-Northern Virginia, DC-MD-VA-WV-PA—consisting of the Washington-Baltimore-Northern Virginia, DC-MD-VA-WV CSA, plus the Hagerstown-Martinsburg, MD-WV MSA, the York-Hanover-Gettysburg, PA CSA, and King George County, VA; and
(34)Rest of U.S.—consisting of those portions of the United States and its territories and possessions as listed in 5 CFR 591.205 not located within another locality pay area. 4. In § 531.606— a. Revise paragraph (b)(1); b. Redesignate paragraph (b)(2) and (b)(3) as (b)(3) and (b)(4), respectively; c. Add a new paragraph (b)(2); and d. Revise newly designated paragraph (b)(4). The revisions and addition read as follows: 531.606 Maximum limits on locality rates.
(a)* * * (b)(1) A locality rate for an employee in a category of positions described in 5 U.S.C. 5304(h)(1)(A) and 5304(h)(1)(B) may not exceed the rate for level III of the Executive Schedule.
(2)A locality rate for an employee in a category of positions described in 5 U.S.C. 5304(h)(1)(C) may not exceed—
(i)The rate for level III of the Executive Schedule, when the positions are not covered by an appraisal system certified under 5 U.S.C. 5307(d); or
(ii)The rate for level II of the Executive Schedule, when the positions are covered by an appraisal system certified under 5 U.S.C. 5307(d).
(4)If initial application of paragraph (b)(3) of this section otherwise would reduce an employee's existing locality rate, the employee's locality rate is capped at the higher of—
(i)The amount of the employee's locality rate on the day before paragraph (b)(3) of this section was initially applied; or
(ii)The rate for level IV of the Executive Schedule. [FR Doc. 2011-13993 Filed 6-6-11; 8:45 am]
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