Unknown. Final rule

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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-2016-01-21.xml --- 81 13 Thursday, January 21, 2016 Contents African African Development Foundation NOTICES Meetings: Board of Directors, 3377 2016-01077 Agricultural Marketing Agricultural Marketing Service RULES Decreased Assessment Rates: Apricots Grown in Designated Counties in Washington, 3293-3294 2016-01137 Agriculture Agriculture Department See Agricultural Marketing Service See Farm Service Agency See Grain Inspection, Packers and Stockyards Administration See Rural Housing Service Alcohol Tobacco Tax Alcohol and Tobacco Tax and Trade Bureau RULES Viticultural Areas:

Los Olivos District; Establishment, 3327-3329 2016-01155 PROPOSED RULES Viticultural Areas: Willcox; Establishment, 3356-3362 2016-01150 Army Army Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 3393 2016-01075 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 3421-3424, 3426-3427 2016-01040 2016-01041 2016-01099 Meetings: Draft Current Intelligence Bulletin—Health Effects of Occupational Exposure to Silver Nanomaterials, 3425-3426 2016-01112 Children Children and Families Administration NOTICES Single-Source Program Expansion Supplement Grants:

Tribal Maternal, Infant, and Early Childhood Home Visiting Program, 3427-3429 2016-01033 Coast Guard Coast Guard RULES Offshore Supply Vessels, Towing Vessel, and Barge Engine Rating Watches, 3336 2016-01101 Security Zones: Annual Events in the Captain of the Port Detroit Zone—North American International Auto Show, Detroit River, Detroit, MI, 3333-3334 2016-01190 PROPOSED RULES Special Local Regulations: Marine Events in the Seventh Coast Guard District, 3362-3373 2016-01032 Commerce Commerce Department See Foreign-Trade Zones Board See Industry and Security Bureau See National Oceanic and Atmospheric Administration See National Telecommunications and Information Administration Commodity Futures Commodity Futures Trading Commission NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 3391-3392 2016-01139 Performance of Certain Functions by the National Futures Association Related to Notices of Swap Valuation Disputes Filed by Swap Dealers and Major Swap Participants, 3390-3391 2016-01051 Consumer Product Consumer Product Safety Commission PROPOSED RULES Safety Standard for High Chairs; Correction, 3354 2016-01133 Council Environmental Council on Environmental Quality NOTICES Sponsorship Opportunity: GreenGov Symposium, 3392-3393 2016-01132 Defense Department Defense Department See Army Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Change Order Accounting, 3420-3421 2016-01192 Economic Price Adjustment, 3420 2016-01194 Privacy Act; Systems of Records, 3393-3397 2016-01037 2016-01084 Drug Drug Enforcement Administration NOTICES Manufacturers of Controlled Substances; Applications: Johnson Matthey, Inc., 3475-3476 2016-01202 Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Campus Equity in Athletics Disclosure Act Survey, 3401 2016-01027 Applications for New Awards:

Talent Search Program; Correction, 3397-3398 2016-01158 Award Deadline Dates for 2016-2017: Federal Perkins Loan, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant Programs, 3398-3400 2016-01159 Employment and Training Employment and Training Administration NOTICES Funding Availability: Linking to Employment Activities Pre-Release Through Specialized American Job Centers, 3476-3477 2016-01146 Energy Department Energy Department See Federal Energy Regulatory Commission Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans;

Approvals and Promulgations: Wisconsin; State Board Requirements, 3334-3336 2016-01015 Farm Credit System Insurance Farm Credit System Insurance Corporation NOTICES Meetings: Farm Credit System Insurance Corporation Board, 3410 2016-01048 Farm Service Farm Service Agency RULES Direct Farm Ownership Microloan, 3289-3293 2016-01038 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: Agusta S.p.A. Helicopters, 3308-3310 2016-00659 Airbus Airplanes, 3294-3297, 3301-3304, 3316-3319 2016-00373 2016-00376 2016-01110 Airbus Helicopters Deutschland GmbH (Previously Eurocopter Deutschland GmbH) (Airbus Helicopters), 3310-3313 2016-00664 Airbus Helicopters Deutschland GmbH (Previously Eurocopter Deutschland GmbH) Helicopters, 3306-3308 2016-00658 Bombardier, Inc.

Airplanes, 3297-3301, 3304-3306, 3313-3316 2016-00371 2016-00378 2016-00630 Dassault Aviation Airplanes, 3320-3323 2016-00629 MD Helicopters Inc., 3319-3320 2016-00945 Amendment of Class E Airspace: El Paso, TX, 3323-3324 2016-00879 PROPOSED RULES Airworthiness Directives: Airbus Airplanes, 3346-3348 2016-00944 BAE Systems (Operations) Limited Airplanes, 3350-3353 2016-01088 Beechcraft Corporation (Type Certificate Previously Held by Hawker Beechcraft Corporation; Raytheon Aircraft Company) Airplanes, 3348-3350 2016-00951 Kaman Aerospace Corporation, 3344-3346 2016-00947 Amendment and Establishment of Restricted Areas:

Chincoteague Inlet, VA, 3353-3354 2016-01211 NOTICES Petitions for Exemption; Summaries: Alaska Aerial Media, 3554-3555 2016-01206 Auburn University, 3557-3558 2016-01204 Douglas Trudeau, 3555-3556 2016-01209 Florida State University, 3556 2016-01210 Hazon Solutions LLC, 3557 2016-01193 Rolls-Royce plc, 3556-3557 2016-01203 Release of Airport Property: Quitclaim Deed and Federal Grant Assurance Obligations at Oxnard Airport, Oxnard, Ventura County, CA, 3554 2016-01205 Santa Maria Public Airport, Santa Maria, Santa Barbara County, CA, 3555 2016-01207 Federal Communications Federal Communications Commission NOTICES Meetings:

Consumer Advisory Committee, 3410-3411 2016-01157 Federal Deposit Federal Deposit Insurance Corporation NOTICES Meetings; Sunshine Act, 3411 2016-01244 Federal Election Federal Election Commission NOTICES Meetings; Sunshine Act, 3411 2016-01298 Federal Energy Federal Energy Regulatory Commission NOTICES Applications: City of Brainerd Public Utility Commission, 3408-3409 2016-01121 Columbia Gas Transmission, LLC, 3404-3405 2016-01116 Combined Filings, 3405-3408 2016-01114 2016-01119 Environmental Assessments;

Availability, etc.: Magnum Gas Storage, LLC; Magnum Gas Storage Amendment Project, 3402-3404 2016-01115 Preliminary Permit Applications: City of Springfield, MA, 3406 2016-01118 ORPC Maine, LLC, 3406-3407 2016-01124 Twain Resources, LLC, 3408 2016-01123 Preliminary Permit Surrenders: KC Lake Hydro LLC, 3408 2016-01122 Staff Attendances, 3401-3402 2016-01120 Termination of Requirement To File Fourth Quarter 2015 Land Acquisition Reports, 3406 2016-01117 Federal Highway Federal Highway Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 3558 2016-01153 Federal Maritime Federal Maritime Commission NOTICES Agreements Filed, 3411-3412 2016-01160 Federal Motor Federal Motor Carrier Safety Administration PROPOSED RULES Carrier Safety Fitness Determinations, 3562-3634 2015-33153 Federal Reserve Federal Reserve System NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 3412-3420 2016-01043 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Species:

Proposed Removal of the Scarlet-Chested Parakeet and Turquoise Parakeet From the List of Endangered and Threatened Wildlife, 3373-3374 2016-01142 NOTICES Endangered Species Permit Applications, 3452 2016-01095 Incidental Take Permit Applications: Massachusetts Division of Fisheries and Wildlife for Piping Plover Habitat Conservation Plan, 3450-3452 2016-01111 Food and Drug Food and Drug Administration RULES Conditional Approval of a New Animal Drug No Longer In Effect: Masitinib, 3324 2016-01100 Medical Devices:

Ear, Nose, and Throat Devices; Classification of the Tympanic Membrane Contact Hearing Aid, 3325-3327 2016-01090 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Adverse Event Reporting and Recordkeeping for Dietary Supplements as Required by the Dietary Supplement and Nonprescription Drug Consumer Protection Act, 3438-3439 2016-01103 Food Contact Substance Notification Program, 3434-3435 2016-01102 Conditional Approval of a New Animal Drug No Longer In Effect:

Masitinib Mesylate Tablets, 3432 2016-01104 Determinations: MEVACOR (Lovastatin) Tablets, 20 Milligrams and 40 Milligrams, Were Not Withdrawn From Sale for Reasons of Safety or Effectiveness, 3435-3436 2016-01096 THORAZINE (Chlorpromazine Hydrochloride) Tablets and Other Drug Products Were Not Withdrawn From Sale for Reasons of Safety or Effectiveness, 3430-3431 2016-01097 Guidance: Implanted Blood Access Devices for Hemodialysis, 3432-3433 2016-01094 Submission and Review of Sterility Information in Premarket Notification (510(k)) Submissions for Devices Labeled as Sterile, 3436-3438 2016-01093 Target Animal Safety Data Presentation and Statistical Analysis, 3429-3430 2016-01098 Meetings:

Cellular, Tissue and Gene Therapies Advisory Committee, 3431-3432 2016-01165 Foreign Assets Foreign Assets Control Office RULES Iranian Transactions and Sanctions, 3330-3333 2016-01227 Foreign Trade Foreign-Trade Zones Board NOTICES Approvals of Subzone Status: MannKind Corp., Danbury, CT, 3377-3378 2016-01178 General Services General Services Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Change Order Accounting, 3420-3421 2016-01192 Economic Price Adjustment, 3420 2016-01194 Geological Geological Survey NOTICES Reopening of Nomination Period:

State Government Members of the Advisory Committee on Climate Change and Natural Resource Science, 3452-3453 2016-01149 Grain Inspection Grain Inspection, Packers and Stockyards Administration PROPOSED RULES United States Standards for Flaxseed, 3341 2016-01045 United States Standards for Mixed Grain, 3343-3344 2016-01046 United States Standards for Rye, 3342-3343 2016-01044 United States Standards for Triticale, 3341-3342 2016-01042 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Children and Families Administration See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health NOTICES Requests for Nominations:

Secretary's Advisory Committee on Human Research Protections, 3442-3443 2016-01049 Health Resources Health Resources and Services Administration NOTICES Requests for Nominations: Advisory Committee on Organ Transplantation, 3441-3442 2016-01126 Advisory Council on Blood Stem Cell Transplantation, 3440-3441 2016-01127 Homeland Homeland Security Department See Coast Guard Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 3449-3450 2016-01151 Indian Affairs Indian Affairs Bureau NOTICES Liquor Ordinances:

Salt River Pima-Maricopa Indian Community of the Salt River Reservation, 3453-3462 2016-01156 Industry Industry and Security Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Chemical Weapons Convention Declaration and Report Handbook and Forms, 3378 2016-01030 Interior Interior Department See Fish and Wildlife Service See Geological Survey See Indian Affairs Bureau See Land Management Bureau See National Park Service See Office of Natural Resources Revenue International Trade Com International Trade Commission NOTICES Investigations;

Determinations, Modifications, and Rulings, etc.: Certain Laser-Driven Light Sources, Subsystems Containing Laser-Driven Light Sources, and Products Containing Same, 3473-3474 2016-01134 Certain RF Capable Integrated Circuits and Products Containing the Same, 3474-3475 2016-01135 Windshield Wiper Devices and Components Thereof, 3471-3473 2016-01089 Meetings; Sunshine Act, 3475 2016-01243 Justice Department Justice Department See Drug Enforcement Administration See Parole Commission NOTICES Proposed Consent Decrees, 3476 2016-01109 Labor Department Labor Department See Employment and Training Administration See Workers Compensation Programs Office Land Land Management Bureau NOTICES Enforcement of Temporary Court-Ordered Closure to Target Shooting on Public Lands in the Sonoran Desert National Monument, Arizona, 3468 2016-01186 Environmental Assessments;

Availability, etc.: Resource Management Plan for the Sonoran Desert National Monument, Arizona; Intent To Amend, 3463-3464 2016-01187 Environmental Impact Statements; Availability, etc.: Expanding an Existing Perlite Mining Operation; Lake County, OR, 3467 2016-01176 Realty Actions: Proposed Competitive Sealed-Bid, Oral Auction Sale and Segregation of Public Land in Owyhee County, ID, 3465-3467 2016-01188 Temporary Closures of Public Land: Sierra County, NM, 3462-3463 2016-01175 Withdrawals of Public Land:

Public Land Order No. 7849; Protection of the Red Gulch Dinosaur Tracksite, WY, 3464 2016-01164 Legal Legal Services Corporation NOTICES Funding Availabilities: Technology Initiative Grant; Letters of Intent To Apply, 3478-3481 2016-01106 NASA National Aeronautics and Space Administration RULES Federal Acquisition Regulation Supplements, 3339 2016-01085 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Change Order Accounting, 3420-3421 2016-01192 Economic Price Adjustment, 3420 2016-01194 National Capital National Capital Planning Commission NOTICES Environmental Impact Statements;

Availability, etc.: Smithsonian Institution's South Mall Campus Master Plan, 3481 2016-01162 National Endowment for the Arts National Endowment for the Arts NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Survey of Public Participation in the Arts, 3481-3482 2016-01136 National Foundation National Foundation on the Arts and the Humanities See National Endowment for the Arts National Institute National Institutes of Health NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: National Institute on Minority Health and Health Disparities Research Endowments, 3447-3448 2016-01080 Meetings: Center for Scientific Review, 3443-3447 2016-01069 2016-01076 National Cancer Institute, 3443, 3446 2016-01067 2016-01068 National Human Genome Research Institute, 3445-3446 2016-01066 National Institute of Dental and Craniofacial Research, 3445 2016-01065 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Northeastern United States:

Northeast Multispecies Fishery; Trip Limit Adjustment for the Common Pool Fishery, 3339-3340 2016-00909 PROPOSED RULES Fisheries of the Exclusive Economic Zone Off Alaska: Western Alaska Community Development Quota Program, 3374-3376 2016-01034 NOTICES Takes of Marine Mammals Incidental to Specified Activities: Coupeville Timber Towers Preservation Project, 3378-3390 2016-01107 National Park National Park Service NOTICES National Register of Historic Places: Pending Nominations and Related Actions, 3469-3470 2016-01071 2016-01073 National Telecommunications National Telecommunications and Information Administration RULES Implementation of Certain Provisions of the Spectrum Pipeline Act, 3337-3338 2016-01047 Natural Resources Office of Natural Resources Revenue NOTICES State Decisions on Participating in Accounting and Auditing Relief for Federal Oil and Gas Marginal Properties, 3470-3471 2016-01079 Parole Parole Commission NOTICES Meetings;

Sunshine Act, 3476 2016-01216 2016-01219 Pipeline Pipeline and Hazardous Materials Safety Administration RULES Hazardous Materials: Adoption of Special Permits, 3636-3686 2016-00780 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 3483 2016-01087 Postal Service Performance Reports and Performance Plans, 3482-3483 2016-01086 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: Martin Luther King, Jr., Federal Holiday (Proc. 9390), 3691-3692 2016-01324 Religious Freedom Day (Proc. 9389), 3687-3690 2016-01323 EXECUTIVE ORDERS Iran;

Provision of Implementation Authorities for Certain Statutory Sanctions Under the Joint Comprehensive Plan of Action of July 14, 2015 and Revocation of Executive Orders 13574, 13590, 13622, and 13645 and Amendment of Executive Order 13628 (EO 13716), 3693-3698 2016-01325 Rural Housing Service Rural Housing Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 3377 2016-01074 Securities Securities and Exchange Commission PROPOSED RULES Access to Data Obtained by Security-Based Swap Data Repositories and Exemption From Indemnification Requirement, 3354-3356 2016-01148 NOTICES Applications:

J.P. Morgan Exchange-Traded Fund Trust, et al., 3520-3527 2016-01147 Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc., 3512-3514 2016-01059 Financial Industry Regulatory Authority, Inc., 3532-3545 2016-01058 NASDAQ OMX BX, Inc., 3545-3547 2016-01064 NASDAQ OMX PHLX LLC, 3489-3490, 3527-3529 2016-01054 2016-01060 New York Stock Exchange, LLC, 3490-3496, 3506-3512 2016-01052 2016-01062 NYSE Arca, Inc., 3484-3489, 3547-3553 2016-01055 2016-01063 NYSE MKT LLC, 3496-3506, 3514-3520, 3530-3532 2016-01053 2016-01056 2016-01057 2016-01061 State Department State Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 3553 2016-01163 Culturally Significant Objects Imported for Exhibition: Bellissima; Italy and High Fashion 1945 - 1968, Correction, 3553-3554 2016-01296 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Pipeline and Hazardous Materials Safety Administration Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau See Foreign Assets Control Office NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 3558-3559 2016-01140 Veteran Affairs Veterans Affairs Department NOTICES Meetings: Commission on Care, 3559 2016-01128 Rehabilitation Research and Development Service Scientific Merit Review Board, 3559-3560 2016-01036 Workers' Workers Compensation Programs Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 3477-3478 2016-01144 2016-01145 Separate Parts In This Issue Part II Transportation Department, Federal Motor Carrier Safety Administration, 3562-3634 2015-33153 Part III Transportation Department, Pipeline and Hazardous Materials Safety Administration, 3636-3686 2016-00780 Part IV Presidential Documents, 3687-3698 2016-01324 2016-01323 2016-01325 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, 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. 81 13 Thursday, January 21, 2016 Rules and Regulations DEPARTMENT OF AGRICULTURE Farm Service Agency 7 CFR Parts 761 and 764 RIN 0560-AI33 Direct Farm Ownership Microloan AGENCY: Farm Service Agency, USDA. ACTION: Final rule.

SUMMARY: The Farm Service Agency

(FSA)is adding Direct Farm Ownership Microloan (DFOML) to the existing Direct Loan Program. The revisions to the Direct Loan Program regulations consist of application, eligibility, repayment terms, and security requirements to better serve the unique operating needs of small family farm operations. The existing Microloans

(ML)in the Direct Loan Program already include MLs for operating loans (OL). DFOML is expected to make farm ownership loans

(FOs)available and more attractive to small operators through reduced application requirements, more timely application processing, and added flexibility for Youth Loan

(YL)borrowers in meeting the farm experience eligibility requirement. DATES: *Effective date:* January 21, 2016. *Comment Date:* We will consider comments we receive by April 20, 2016. ADDRESSES: We invite you to submit comments on this final rule. In your comment, please specify RIN 0560-AI33 and include the volume, date, and page number of this issue of the **Federal Register** . You may submit comments by either of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov* . Follow the instructions for submitting comments. • *Mail:* Director, Loan Making Division, Farm Loan Programs (FLP), FSA, U.S. Department of Agriculture, 1400 Independence Avenue SW., Stop 0522, Washington, DC 20250-0522. Comments will be available for inspection online at *http://www.regulations.gov* and in the Office of the Director, Loan Making Division, FSA, USDA, 1400 Independence Avenue SW., Stop 0522, Washington, DC 20250-0522, between 8 a.m. and 4:30 p.m., except holidays. FOR FURTHER INFORMATION CONTACT: Russ Clanton; telephone:

(202)690-0214. Persons with disabilities or who require alternative means for communication should contact the USDA Target Center at

(202)720-2600 (voice). SUPPLEMENTARY INFORMATION: Background FSA provides agricultural credit to the Nation's farmers and ranchers through the FO Program. The Consolidated Farm and Rural Development Act of 1972 (CONACT, Pub. L. 92-419), as amended, authorizes FSA's FO Program. The FO Program is designed to finance the farm ownership needs of family farms for operators who meet the program eligibility requirements. Among other things, eligible applicants must be unable to obtain sufficient credit from other sources; have sufficient farming experience; have an acceptable credit history; and have adequate collateral for the proposed loan. (See 7 CFR 764.101 and 764.152 for a full explanation of FO eligibility requirements.) FO funds may be used, among other purposes, to purchase a farm, enlarge an existing farm, construct new farm buildings or improve structures, pay closing costs, and promote soil and water conservation and protection. (See 7 CFR 764.151 for a complete list of FO funds uses.) Throughout this rule, any reference to “farm” or “farmer” also includes “ranch” or “rancher,” respectively; in this document, the word “operator” refers to farmers who operate a farm. FSA has conducted a Direct ML Program for OLs since January 2013 and has made 16,842 MLs to farmers since inception and provided MLs totaling $66.1 million dollars in FY 2013, $98.3 million in FY 2014, and $209.4 million in FY 2015 and the first quarter of FY 2016 (loan amounts are as of January 13, 2016). The Direct ML Program has seen explosive growth and helped to fill a need for financing of small farm operations, many of them to beginning or underserved farmers. Following the success of the Direct ML Program for direct OLs, FSA has decided to expand the ML Program to add direct FOs to reach more beginning farmers and farmers with small farms. FSA evaluated the unique needs of small farm operations and identified unintended barriers to applying for FOs of smaller loan amounts. FSA is simplifying the application process and adding flexibility for meeting loan eligibility in order to encourage their participation. FSA is creating the new DFOML application process within the existing FO Program framework, and will use existing FO appropriations to focus on the financing needs of small farm operations. FSA is implementing the DFOML to provide credit in an aggregate amount not to exceed $50,000. The $50,000 limit for MLs is established as specified in section 5106 of the Agricultural Act of 2014 (Pub. L. 113-79, referred to as the 2014 Farm Bill), amending the CONACT (7 U.S.C. 1943), to set the limit of $50,000 for the total ML indebtedness outstanding at any one time to any single borrower. Therefore, eligible farmers cannot have more than $50,000 in direct ML debt in each of the direct FO and OL programs upon loan closing. It is intended that smaller loan amounts will help small operations, such as beginning farmers, truck farmers, niche-type operations, and those who have demonstrated financial and business experience through the successful repayment of a Youth Loan (YL). These farmers tend to have difficulty obtaining real estate financing from lenders who are unlikely to loan such small amounts, particularly to non-typical operations. FSA is providing credit to these farmers at reasonable rates and terms that are significant because financing costs have a greater impact on smaller startup operations, which typically have a tighter cash flow. Similar to the OL ML, under 7 CFR 761.104(e) DFOML applicants can provide other forms of documentation, such as operator's sales receipts, financial statements, contracts, and tax returns. This change will be helpful for operations where past yields have little bearing on the projected plan, such as vegetable operators who plan short term and grow different crops to meet current demand; operators who produce crops using measures such as rows or partial rows versus acres; or operators who grow crops that sell in volumes such as bunches. In some of these cases it will be impracticable, burdensome, and often irrelevant for the farmer to demonstrate accurate yields, especially if a variety of produce is harvested and then sold to the public only hours later. In such cases, past reliable history of income and expenses or cash receipts may be more useful in projecting the future production revenue of a field, greenhouse, or operation. Also, if an operator is changing the crop from year to year to meet changing market demands, then production for the past 2 or 3 years may not be applicable to the production model. This modification allows FSA to assist operations that otherwise may have difficulty meeting or documenting production and yield history and will provide sufficient information for a loan official to determine eligibility and feasibility. Additionally, repayment terms are being modified for these smaller FOs to allow borrowers to more quickly build equity in their farm real estate according to their repayment ability. That, combined with the already established flexibility for the farmers to make loan payments when they sell their products, allows farmers to more efficiently manage their income and resources. This rule modifies the FO eligibility requirements in 7 CFR 764.152 to allow farmers who have successfully repaid an FSA financed YL to use the term of that loan toward the 3 years farm management experience for a DFOML. Each year of the YL term can be applied toward meeting the requirement for 3 years of farm management experience. The repayment terms of DFOML will differ from the regular FO Program; the maximum number of years for a borrower to pay back a DFOML is 25 years. For smaller real estate loans, there is not a large difference in the payment amount between the annual installments under DFOML's maximum 25-year amortization schedule and the regular FO's maximum 40 year amortization. However; the interest paid on a 40 year amortization is considerably larger than on the 25-year schedule. The borrowers will benefit from paying less total interest on the life of their loan. The average number of years for an FO to be outstanding is 13 years, with loans being either paid in full or refinanced with another lender within this timeframe. Some borrowers do remain with FSA for the duration of their FO term. The 25-year maximum is reasonable for assisting our borrowers to purchase land and to build equity in the property. The benefits will help small operations endure through the start-up years, demonstrate capacity, build equity, move up to FSA regular loan programs, and eventually graduate to commercial credit. Our role in providing supervised credit is to help borrowers prepare for the transition to conventional credit. While a DFOML will reduce the paperwork burden on applicants and FSA staff, it will not reduce the amount of oversight provided by FSA to these farmers. In fact, as a result of streamlining the application process, FSA will have more time to work on cash flow analysis, provide borrower training and ready these borrowers for transition into commercial credit. ML Application Requirements and Application Processing This rule is revising 7 CFR 764.51 to add the requirements for the DFOML application. A complete DFOML application will consist of the following: • A microloan application form (§ 764.51(b)(1)); • A balance sheet (§ 764.51(b)(9) and (d)(2)(ii)); • An operating plan (§ 764.51(b)(9)); • Applicable environmental information (§ 764.51(b)(7)); • Description of the applicant's farm training and experience (§ 764.51(b)(3)); • Verification of applicant's farm experience (§ 764.51(d)(2)(v)); • Documentation that credit cannot be obtained elsewhere (§ 764.51(b)(6)); • Documents with regard to the property or option to purchase agreement (§ 764.51(b)(10)); • The credit report fee (§ 764.51(b)(11)); and • Verification of non-farm income for repayment (§ 764.51(d)(2)(iii)). • In addition, if the applicant is an entity, the complete application will include entity and entity member information specified in § 764.51(b)(2). The DFOML application form is the same one in use for applicants for Direct ML Program for OLs. This form is intended to capture most of the information needed to process an ML, including sections for the applicant to describe farm training and experience. It also reduces and simplifies the financial statement. Environmental information will still be handled through the county office process, involving FSA staff and NRCS staff, as applicable. This will not change from the current process followed for regular FOs. Verification of non-farm income will only be required if that income is necessary for a feasible plan and sufficient cash flow for debt repayment. This is a change from the existing FO application process, as income is always verified as specified in § 764.51(b)(8). If it is necessary to verify debt, debts will be verified through the credit bureau reporting system. This information will be sufficient for a loan official to determine eligibility and feasibility. The DFOML includes an abbreviated loan assessment, Farm Business Plan credit presentation, and year-end analysis, which will better parallel components of a small operation. Additionally, since these real estate loans will be $50,000 or less, the appraisal requirement may be met by an authorized agency official's evaluation that establishes the value of the real estate. An acceptable evaluation for DFOML will include an identification of the location of the property; a description of the property, including any improvements and its current and projected use; confirmation that the property was physically inspected and the date of the inspection; description of the analysis performed and supporting information used to determine the property's market value; an effective date of the evaluation and signature of the preparer. The reduced requirements will allow loan staff to focus on paperwork that is valuable in the analysis of these smaller operations, instead of reviewing the required forms and paperwork necessary with larger, more complex real estate loans. The lower loan limit helps mitigate much of the risk inherent with less documentation and non-typical agricultural operations. For incomplete applications, FSA will follow existing direct loan processing procedures. Following current procedures, FSA will inform the applicant, through written correspondence, of any missing items needed to complete the application prior to established regulatory deadlines. Eligibility Since DFOMLs are FOs, applicants will be subject to existing FO eligibility requirements. However, FSA added flexibility for YL borrowers in meeting the managerial ability requirement. Current regulations in 7 CFR 764.152(d) require that an FO applicant show the ability to manage a farm operation; the applicant must have participated in the business operations of a farm for at least 3 years out of the 10 years prior to the date the application is submitted. One of these three years can be substituted with the following experience: • Postsecondary education in agriculture business, horticulture, animal science, agronomy, or other agricultural related fields, • Significant business management experience, or • Leadership or management experience while serving in any branch of the military. As noted above, the current revisions add flexibility for farmers who have successfully repaid an FSA financed YL to use the term of that loan toward the 3 years farm management experience for a DFOML. Except as noted in the rule, FO eligibility and feasibility criteria will remain consistent with existing programs in FLP, but the small loan amount will make the extensive paperwork requirements unnecessary. The farm operation will be required to project a positive cash flow, and servicing options will remain consistent with existing FLP options. The DFOML process will simply broaden the reach of FSA's FO Program by providing flexibility that allows FSA loan programs to be more attractive to small and beginning farmers. This rule modifies the ML definition, in 7 CFR 761.2, to include FO uses of funds; the prior ML definition only addressed direct OLs. Additionally, this rule creates a distinction between MLs used for OL and FO purposes in areas in which the application process, eligibility, and security requirements differ. FSA has considered several options in creating the DFOML and has weighed the underwriting risks against the opportunity to improve the FO Program. The underwriting risks will be limited due to the lower loan amounts and the smaller pool of applicants who are able to benefit from DFOML. The benefits to beginning and small farmers to apply for DFOML clearly outweigh any perceived risks or barriers. Security Requirements As specified in § 764.101(c) and (e), MLs are exempted from the requirements of obtaining 150 percent security and taking a lien on non-essential assets. As specified in § 764.155(b)(1), an ML made for FO purposes, may be secured only by the real estate being purchased or improved, as long as it meets the 100 percent security requirement. This is consistent with the security requirements in place for existing OL MLs. Applicability of Other Regulatory Requirements Other existing and applicable regulatory requirements pertaining to development of operating plans, loan processing and closing, use of loan funds, loan servicing, and environmental requirements not specifically amended by this rule will apply to MLs, like other FOs. Miscellaneous Changes In addition to the changes discussed above, this rule is making conforming minor changes to correct the ML limit to be consistently $50,000 and to otherwise add MLs to FOs in the regulations. Notice and Comment In general, the Administrative Procedure Act (5 U.S.C. 553) requires that a notice of proposed rulemaking be published in the **Federal Register** and interested persons be given an opportunity to participate in the rulemaking through submission of written data, views, or arguments with or without opportunity for oral presentation, except when the rule involves a matter relating to public property, loans, grants, benefits, or contracts. This rule involved matters relating to loans and is therefore being published as a final rule. Although FSA is not required to provide the opportunity for comments on this rule, we are requesting public comments for 90 days to get input on the changes. Effective Date The Administrative Procedure Act (5 U.S.C. 553) provides generally that before rules are issued by Government agencies, the rule is required to be published in the **Federal Register** , and the required publication of a substantive rule is to be not less than 30 days before its effective date. One of the exceptions is when the agency finds good cause for not delaying the effective date. Most FO loans are established at the beginning of the calendar year, therefore, implementing this rule quickly will benefit beginning and small farms starting in 2016 instead of having to wait for 2017. Using the administrative procedure provisions in 5 U.S.C. 553, FSA finds that there is good cause for making this rule effective less than 30 days after publication in the **Federal Register** . Therefore, this final rule is effective when published in the **Federal Register** . Executive Orders 12866 and 13563 Executive Order 12866, “Regulatory Planning and Review,” and Executive Order 13563, “Improving Regulation and Regulatory Review,” direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasized the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget

(OMB)designated this rule as not significant under Executive Order 12866 and, therefore, OMB has not reviewed this final rule. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), generally requires an agency to prepare a regulatory flexibility analysis of any rule whenever an agency is required by APA or any other law to publish a final rule, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. This rule is not subject to the Regulatory Flexibility Act because it is exempt from notice and comment rulemaking requirements of the APA and no other law requires that a proposed rule be published for this rulemaking initiative. Environmental Review The environmental impacts of this rule have been considered in a manner consistent with the provisions of the National Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on Environmental Quality (40 CFR parts 1500-1508), and the FSA regulations for compliance with NEPA (7 CFR 799 and 7 CFR part 1940, subpart G). FSA concluded that simplifying the application process and adding flexibility for meeting loan eligibility requirements to encourage small farm operation participation in its FO program explained in this rule are administrative in nature and will not have a significant impact on the quality of the human environment either individually or cumulatively. The environmental responsibilities for each prospective applicant will not change from the current process followed for all FLP actions (7 CFR 1940.309). Therefore, FSA will not prepare an environmental assessment or environmental impact statement on this rule. Executive Order 12372 Executive Order 12372, “Intergovernmental Review of Federal Programs,” requires consultation with State and local officials. The objectives of the Executive Order are to foster an intergovernmental partnership and a strengthened Federalism, by relying on State and local processes for State and local government coordination and review of proposed Federal Financial assistance and direct Federal development. For reasons set forth in the Notice 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. Executive Order 12988 This rule has been reviewed in accordance with Executive Order 12988, “Civil Justice Reform.” The provisions of this rule will not have preemptive effect with respect to any State or local laws, regulations, or policies that conflict with such provision or which otherwise impede their full implementation. The rule will not have retroactive effect. Executive Order 13132 This rule has been reviewed under Executive Order 13132, “Federalism.” The policies contained in this rule will not have any substantial direct effect on States, on the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government. Nor would this rule impose substantial direct compliance costs on State and local governments. Therefore, consultation with the States is not required. Executive Order 13175 This rule has been reviewed in accordance with the requirements of Executive Order 13175, “Consultation and Coordination with Indian Tribal Governments.” Executive Order 13175 requires Federal agencies to consult and coordinate with tribes on a government-to-government basis on policies that have tribal implications, including regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes or on the distribution of power and responsibilities between the Federal Government and Indian tribes. FSA has assessed the impact of this rule on Indian tribes and determined that this rule does not, to our knowledge, have tribal implications that require tribal consultation under Executive Order 13175. If a Tribe requests consultation, FSA will work with the USDA Office of Tribal Relations to ensure meaningful consultation is provided where changes, additions, and modifications identified in this rule are not expressly mandated by the 2014 Farm Bill. Unfunded Mandates Reform Act Title II of the Unfunded Mandate Reform Act of 1995 (UMRA, Pub. L. 104-4) requires Federal agencies to assess the effects of their regulatory actions on State, local, or Tribal governments or the private sector. Agencies generally must prepare a written statement, including a cost benefit analysis, for proposed and final rules with Federal mandates that may result in expenditures of $100 million or more in any 1 year for State, local, or Tribal governments, in the aggregate, or to the private sector. UMRA generally requires agencies to consider alternatives and adopt the more cost effective or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates under the regulatory provisions of Title II of the Unfunded Mandates Reform Act of 1995

(UMRA)for State, local, or Tribal governments, or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), FSA described the Direct Farm Ownership Microloan (DFOML) information collection activities in the request for the renewal and revision of the 0260-0237, Direct Loan Making, notice published on 10/07/2015, 80 FR 60614-60615. FSA will be using the existing approval for the forms to begin the DFOML collection under the 0560-0237, Direct Loan Making. Therefore, no change to the information collection was required in this rule. 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 The title and number of the Federal assistance programs, as found in the Catalog of Federal Domestic Assistance, to which this final rule would apply is: 10.407 Farm Ownership Loans. List of Subjects 7 CFR Part 761 Accounting, Loan programs-agriculture, Rural areas. 7 CFR Part 764 Agriculture, Disaster assistance, Loan programs-agriculture, Agricultural commodities, Livestock. For reasons discussed above, FSA amends 7 CFR chapter VII as follows: PART 761—FARM LOAN PROGRAMS; GENERAL PROGRAM ADMINISTRATION 1. The authority citation for part 761 continues to read as follows: Authority: 5 U.S.C. 301 and 7 U.S.C. 1989. 2. Revise the definition of “Microloan” in § 761.2(b) to read as follows: § 761.2 Abbreviations and definitions.

(b)* * * *Microloan* means a type of OL or FO of $50,000 or less made using a reduced loan application. Direct MLs are made under modified eligibility and security requirements. PART 764—DIRECT LOAN MAKING 3. The authority citation for part 764 continues to read as follows: Authority: 5 U.S.C. 301 and 7 U.S.C. 1989. § 764.1 [Amended] 4. In § 764.1(b)(1), add the phrase “ML and” immediately after “including”. 5. Amend § 764.51 as follows: a. In paragraph

(c)introductory text, add the words “for OL purposes” immediately after “request”; b. Redesignate paragraphs (d), (e), and

(f)as paragraphs (e), (f), and (g); and c. Add a new paragraph (d). The addition reads as follows: § 764.51 Introduction.

(d)For an ML request for FO purposes, all of the following criteria must be met:

(1)The loan requested is:

(i)To pay for any authorized purpose under the FO Program, which are specified in § 764.151; and

(ii)$50,000 or less and the applicant's total outstanding Agency FO debt at the time of loan closing will be $50,000 or less,

(2)The applicant must submit the following:

(i)Items specified in paragraphs (b)(1), (2), (3), (6), (7), (9), (10), and

(11)of this section;

(ii)Financial and production records for the most recent production cycle, if available and practicable to project the cash flow of the operating cycle; and

(iv)Verification of all non-farm income relied upon for repayment; and

(v)Verification of applicant's farm experience;

(3)The Agency may require an ML applicant to submit any other information listed in paragraph

(b)of this section upon request when necessary to make a determination on the loan application. 6. Amend § 764.101 as follows: a. In paragraph (i)(3), remove “MLs” and add the phrase “MLs, made for OL purposes,” in its place; and b. Revise paragraph (i)(4). The revision reads as follows: § 764.101 General eligibility requirements.

(i)* * *

(4)*Alternatives for MLs made for OL purposes.* Applicants for MLs made for OL purposes, also may demonstrate managerial ability by one of the following: 7. Revise § 764.107(a) to read as follows: § 764.107 General appraisal requirements.

(a)*Establishing value for real estate.* The value of real estate will be established by an appraisal completed in accordance with § 761.7 of this chapter, except that for MLs made for FO purposes, the appraisal requirement may be satisfied by an evaluation by an authorized agency official that establishes the value of the real estate. 8. Amend § 764.152 as follows: a. Redesignate paragraph

(e)as paragraph (f); and b. Add a new paragraph (e). The addition reads as follows: § 764.152 Eligibility requirements.

(e)For an ML made for FO purposes, if an ML applicant has successfully repaid an FSA financed youth loan, the term of that loan may be used toward the 3 years of management experience required for a FO direct loan. 9. Amend § 764.154 as follows: a. In paragraph (b), remove the words “The Agency” and add the phrase “Except for MLs made for FO purposes, the Agency” in their place. b. Add paragraph (b)(1) and add and reserve paragraph (b)(2). The addition reads as follows: § 764.154 Rates and terms.

(b)* * *

(1)For MLs made for FO purposes the Agency schedules repayment of an FO based on the applicant's ability to repay and the useful life of the security. In no event will the term be more than 25 years from the date of the note.

(2)[Reserved] 10. In § 764.155, add paragraph (b)(1) to read as follows; and add and reserve paragraph (b)(2). § 764.155 Security requirements.

(b)* * *

(1)An ML made for FO purposes, may be secured only by the real estate being purchased or improved, as long as its value is at least 100 percent of the loan amount.

(2)[Reserved] 11. Amend § 764.203 as follows: a. Redesignate paragraph

(c)as paragraph (d); and b. Add a new paragraph (c). The addition reads as follows: § 764.203 Limitation.

(c)Downpayment loans made as an ML for FO purposes may not exceed $50,000. § 764.251 [Amended] 12. In § 764.251(a) introductory text, add the phrase “used for OL purposes” immediately after “ML”. § 764.255 [Amended] 13. In § 764.255(c) introductory text, add “used for OL purposes” immediately after “MLs”. Val Dolcini, Administrator, Farm Service Agency. [FR Doc. 2016-01038 Filed 1-20-16; 8:45 am]

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