Unknown. Interim final rule with request for comment

5,289 words·~24 min read·/register/2021/05/21/2021-10711

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-2021-05-21.xml --- 86 97 Friday, May 21, 2021 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Food and Nutrition Service See Forest Service Alcohol Tobacco Firearms Alcohol, Tobacco, Firearms, and Explosives Bureau PROPOSED RULES Definition of Frame or Receiver and Identification of Firearms, 27720-27753 2021-10058 Animal Animal and Plant Health Inspection Service NOTICES Privacy Act;

Systems of Records, 27553-27556 2021-10707 Revisions to Requirements for Importation: Fresh Melon Fruit From Japan Into the United States, 27552-27553 2021-10706 Army Army Department NOTICES Environmental Impact Statements; Availability, etc.: Training and Public Land Withdrawal Extension, Fort Irwin, CA, 27568-27569 2021-10504 Consumer Financial Protection Bureau of Consumer Financial Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 27567-27568 2021-10794 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 27623 2021-10796 Children Children and Families Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: National and Tribal Evaluation of the 2nd Generation of the Health Profession Opportunity Grants, 27624-27625 2021-10732 Pre-testing of Evaluation Data Collection Activities, 27624 2021-10731 Civil Rights Civil Rights Commission NOTICES Meetings: Mississippi Advisory Committee, 27557-27558 2021-10735 Coast Guard Coast Guard RULES Drawbridge Operations:

Savannah River, Savannah, GA, 27519-27520 2021-10739 Safety Zone: Fincantieri Blasting Project; Menominee River, Menominee, MI and Marinette, WI, 27520-27523 2021-10775 Southern California Annual Firework Events for the San Diego Captain of the Port Zone, 27523-27524 2021-10737 Southern California Annual Fireworks for the San Diego Captain of the Port Zone, 27523 2021-10741 Special Local Regulation: Great Western Tube Float, Parker, AZ, 27518-27519 2021-10738 NOTICES Meetings:

National Navigation Safety Advisory Committee; June 2021 Teleconference, 27639-27640 2021-10789 Commerce Commerce Department See International Trade Administration See Minority Business Development Agency See National Oceanic and Atmospheric Administration Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement List; Additions and Deletions, 27565-27567 2021-10802 2021-10803 Community Living Administration Community Living Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: State Performance Report, 27625-27626 2021-10708 Comptroller Comptroller of the Currency NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Credit Risk Retention, 27677-27680 2021-10799 Defense Department Defense Department See Army Department See Engineers Corps Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Flexibility for Equitable Per-pupil Funding, 27570-27571 2021-10768 U.S.

Department of Education Grant Performance Report Form, 27583-27584 2021-10763 Applications for New Awards: Hispanic Serving Institutions Science, Technology, Engineering and Mathematics and Articulation Program; Correction, 27583 2021-10740 Minority Science and Engineering Improvement Program, 27584-27589 2021-10742 Technical Assistance and Dissemination to Improve Services and Results for Children with Disabilities; Model Demonstration Projects to Improve Services and Results for Infants, Toddlers, and Children with Disabilities, 27571-27583 2021-10729 Election Election Assistance Commission NOTICES Establishment of Local Leadership Council, 27589 2021-10787 Energy Department Energy Department See Federal Energy Regulatory Commission Engineers Engineers Corps NOTICES Environmental Impact Statements;

Availability, etc.: Lake Okeechobee System Operating Manual, Glades, Martin, Palm Beach, Hendry, Lee, St. Lucie and Okeechobee Counties, FL; Effects may extend to Broward, Miami-Dade, Monroe, and Collier Counties, FL, 27569-27570 2021-10761 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: California; 2008 8-Hour Ozone Nonattainment Area Requirements; Western Nevada County, 27524-27532 2021-10510 Utah;

Logan, Utah-Idaho PM <sup>2.5</sup> Redesignation to Attainment and Maintenance Plan, 27532-27534 2021-10633 Federal Plan Requirements for Municipal Solid Waste Landfills That Commenced Construction On or Before July 17, 2014, and Have Not Been Modified or Reconstructed Since July 17, 2014, 27756-27790 2021-10109 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Missouri; Restriction of Emissions from Lithographic and Letterpress Printing Operations, 27543-27546 2021-10783 Petition for Rulemaking under TSCA;

Reasons for Agency Response; Denial of Requested Rulemaking, 27546-27550 2021-09998 NOTICES Environmental Impact Statements; Availability, etc.: Weekly Receipt, 27593 2021-10762 Nominations to the Federal Insecticide, Fungicide, and Rodenticide Act Scientific Advisory Panel; Request for Comments, 27594-27596 2021-10743 Pesticide Product Registration: Draft Human Health and/or Ecological Risk Assessments for Several Pesticides, 27593-27594 2021-10715 Farm Credit Farm Credit Administration RULES Title IV Conservators and Receivers, 27510 2021-10577 Federal Aviation Federal Aviation Administration RULES Airspace Designations and Reporting Points:

Vicinity of Maples, MO, 27511-27513 2021-10616 VOR Federal Airway V-242, 27510-27511 2021-10617 PROPOSED RULES Airworthiness Directives: Airbus Helicopters, 27535-27537 2021-10721 Airbus SAS Airplanes, 27540-27543 2021-10635 Leonardo S.p.a. Helicopters, 27538-27540 2021-10700 Federal Bureau Federal Bureau of Investigation NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Law Enforcement Suicide Data Collection Pilot Testing, 27654 2021-10744 Federal Communications Federal Communications Commission NOTICES Meetings:

North American Numbering Council, 27596 2021-10786 Federal Deposit Federal Deposit Insurance Corporation NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 27596-27602 2021-10754 Request for Information: Digital Assets, 27602-27603 2021-10772 Federal Election Federal Election Commission NOTICES Filing Dates: Texas Special Election in the 6th Congressional District Special Election, 27603-27604 2021-10777 Federal Emergency Federal Emergency Management Agency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Preparedness Grants: Transit Security Grant Program, 27640-27641 2021-10713 Meetings: Implement Pandemic Response Voluntary Agreement under the Defense Production Act, 27641-27642 2021-10800 Federal Energy Federal Energy Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 27589-27591 2021-10694 Combined Filings, 27592 2021-10663 Complaint: LS Power Development, LLC; Doswell Limited Partnership v.

PJM Interconnection, LLC, 27591 2021-10695 Federal Highway Federal Highway Administration NOTICES Permits: Enhancing Highway Workforce Development Opportunities Contracting Initiative, 27667-27671 2021-10785 Federal Housing Finance Agency Federal Housing Finance Agency NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 27604-27622 2021-10771 Federal Railroad Federal Railroad Administration NOTICES Petition for Waiver of Compliance, 27671-27672 2021-10725 2021-10726 Federal Reserve Federal Reserve System RULES Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks, 27507-27509 2021-10711 NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 27622 2021-10798 Federal Transit Federal Transit Administration NOTICES Equitable Economic Recovery and Workforce Development Through Construction Hiring Pilot Program, 27672-27675 2021-10797 Fish Fish and Wildlife Service NOTICES Permit Application:

Endangered and Threatened Species, 27645-27648 2021-10773 Food and Drug Food and Drug Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Labeling of Certain Beers Subject to the Labeling Jurisdiction of the Food and Drug Administration, 27631-27633 2021-10750 Guidance: Adjusting for Covariates in Randomized Clinical Trials for Drugs and Biological Products, 27627-27629 2021-10760 Demonstrating Bioequivalence for Soluble Powder Oral Dosage Form Products and Type A Medicated Articles Containing Active Pharmaceutical Ingredients Considered to Be Soluble in Aqueous Media, 27633-27635 2021-10756 Enforcement Policy Regarding Use of National Health Related Item Code and National Drug Code Numbers on Device Labels and Package, 27629-27631 2021-10752 Meetings:

Cardiovascular and Renal Drugs Advisory Committee, 27626-27627 2021-10751 Vaccines and Related Biological Products Advisory Committee, 27635-27636 2021-10784 Food and Nutrition Food and Nutrition Service NOTICES Child Nutrition Programs: Non-Competitive Technology Innovation Grant Funding, 27556 2021-10709 Forest Forest Service NOTICES Meetings: Siskiyou County Resource Advisory Committee, 27556-27557 2021-10759 Trinity County Resource Advisory Committee, 27557 2021-10758 General Services General Services Administration NOTICES Meetings:

Live Webinar Regarding the Federal Government's Implementation of M-21-07—Completing the Transition to Internet Protocol Version 6, 27622 2021-10714 Health and Human Health and Human Services Department See Centers for Medicare & Medicaid Services See Children and Families Administration See Community Living Administration See Food and Drug Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Individual Complaint of Employment Discrimination, 27642-27643 2021-10712 Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: 60-Day Notice of Proposed Information Record of Employee Interview, 27643-27644 2021-10780 Office of the Chief Human Capital Officer Personnel Security Integrated System for Tracking, 27644-27645 2021-10701 Inter-American Inter-American Foundation NOTICES Meetings;

Sunshine Act, 27645 2021-10862 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau International Trade Adm International Trade Administration RULES Aluminum Import Monitoring and Analysis System; Effective Date and Response to Comments, 27513-27518 2021-10747 NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Activated Carbon from the People's Republic of China, 27559-27560 2021-10746 Certain Circular Welded Non-Alloy Steel Pipe from Mexico, 27558-27559 2021-10779 International Trade Com International Trade Commission NOTICES Investigations;

Determinations, Modifications, and Rulings, etc.: Certain Mobile Devices with Multifunction Emulators, 27651-27653 2021-10727 Certain Portable Battery Jump Starters and Components Thereof, 27650-27651 2021-10767 Certain Uncoated Paper from Australia, Brazil, China, Indonesia, and Portugal, 27650 2021-10766 Organic Soybean Meal from India, 27649-27650 2021-10728 Justice Department Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Federal Bureau of Investigation See Prisons Bureau Labor Department Labor Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Safe and Sound Campaign, 27655-27656 2021-10765 Land Land Management Bureau NOTICES Call for Nominations: Colorado Resource Advisory Councils; Statewide, 27648-27649 2021-10723 Plats of Survey: Oregon/Washington, 27648 2021-10699 Maritime Maritime Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Procedures for Determining Vessel Services Categories for Purposes of the Cargo Preference Act, 27676-27677 2021-10696 Quarterly Readiness of Strategic Seaport Facilities Reporting, 27676 2021-10693 Seamen's Claims, Administrative Action and Litigation, 27675-27676 2021-10692 Minority Business Minority Business Development Agency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: National Minority Business Awards, 27560 2021-10702 National Archives National Archives and Records Administration NOTICES Records Schedules; Availability and Request for Comments, 27656-27657 2021-10730 National Institute National Institutes of Health NOTICES Meetings: Center for Scientific Review, 27637 2021-10790 National Center for Advancing Translational Sciences, 27636 2021-10749 National Institute of Dental and Craniofacial Research, 27638-27639 2021-10792 National Institute of Environmental Health Sciences, 27637-27638 2021-10753 National Institute of Mental Health, 27636-27637 2021-10791 National Institute on Aging, 27638 2021-10793 National Oceanic National Oceanic and Atmospheric Administration PROPOSED RULES Atlantic Highly Migratory Species:

Atlantic Bluefin Tuna Fisheries Management, 27686-27717 2021-10210 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Marine Debris Program Performance Progress Report, 27561-27562 2021-10795 Meetings: Fisheries of the Gulf of Mexico; Southeast Data, Assessment, and Review, 27564 2021-10755 Gulf of Mexico Fishery Management Council, 27565 2021-10717 Mid-Atlantic Fishery Management Council, 27563 2021-10718 New England Fishery Management Council, 27563-27564 2021-10719 Pacific Fishery Management Council, 27562 2021-10720 Science Advisory Board, 27560-27561 2021-10745 National Transportation National Transportation Safety Board PROPOSED RULES Definition of Unmanned Aircraft Accident, 27550-27551 2021-09807 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Guidance:

Radiological Consequence Analyses Using Alternative Source Terms, 27657 2021-10748 Postal Regulatory Postal Regulatory Commission NOTICES Competitive Postal Products, 27658-27659 2021-10722 New Postal Products, 27658 2021-10705 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: National Hepatitis Testing Day (Proc. 10214), 27505-27506 2021-10922 ADMINISTRATIVE ORDERS Government Agencies and Employees; Justice, Department of; Provisions To Restore Access-to-Justice Function and Reinvigorate the White House Legal Aid Interagency Roundtable (Memorandum of May 18, 2021), 27791-27796 2021-10973 Prisons Prisons Bureau NOTICES Environmental Impact Statements;

Availability, etc.: Federal Correctional Institution and Federal Prison Camp on the grounds of the United States Penitentiary in Leavenworth, KS, 27654-27655 2021-10575 Securities Securities and Exchange Commission NOTICES Meetings; Sunshine Act, 27663 2021-10935 Self-Regulatory Organizations; Proposed Rule Changes: The Nasdaq Stock Market, LLC, 27659-27663 2021-10710 Small Business Small Business Administration NOTICES Major Disaster Declaration: Kentucky, 27663 2021-10704 Washington, 27663-27664 2021-10703 Substance Substance Abuse and Mental Health Services Administration NOTICES Meetings:

Center for Substance Abuse Prevention Drug Testing Advisory Board, 27639 2021-10778 Surface Transportation Surface Transportation Board NOTICES Abandonment Exemption: Union Railroad Company, LLC; City of McKeesport, Allegheny County, PA, 27666 2021-10724 Acquisition Exemption: Southwest Pennsylvania Railroad Co.; Lines of Westmoreland County Industrial Development Corp., 27664 2021-10734 Acquisition of Control: EQT Infrastructure V Collect EUR SCSp and EQT Infrastructure V Collect USD SCSp;

First Student, Inc.; First Transit, Inc.; First Mile Square, LLC; First Canada ULC; and Transit Management of Dutchess County, Inc., 27664-27666 2021-10782 Lease and Operation Exemption: Lubbock and Western Railway, LLC; BNSF Railway Co., 27666-27667 2021-10757 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Railroad Administration See Federal Transit Administration See Maritime Administration Treasury Treasury Department See Comptroller of the Currency NOTICES Request for Information:

State Small Business Credit Initiative, 27680-27682 2021-10697 Veteran Affairs Veterans Affairs Department NOTICES Reestablishment: Veterans' Family, Caregiver and Survivor Advisory Committee, 27683 2021-10649 Solicitation of Nominations: Geriatrics and Gerontology Advisory Committee, 27682-27683 2021-10698 Separate Parts In This Issue Part II Commerce Department, National Oceanic and Atmospheric Administration, 27686-27717 2021-10210 Part III Justice Department, Alcohol, Tobacco, Firearms, and Explosives Bureau, 27720-27753 2021-10058 Part IV Environmental Protection Agency, 27756-27790 2021-10109 Part V Presidential Documents, 27791-27796 2021-10973 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 electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 86 97 Friday, May 21, 2021 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 215 [Regulation O; Docket No. R-1740] RIN 7100-AG 10 Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Interim final rule with request for comment. SUMMARY: On April 17, 2020, the Board issued an interim final rule to except certain loans made through June 30, 2020, that are guaranteed under the Small Business Administration's Paycheck Protection Program from the requirements of the Federal Reserve Act and the associated provisions of the Board's Regulation O. The Board issued two additional interim final rules to extend the exception when Congress approved extensions to the Paycheck Protection Program.

To reflect a further extension approved by Congress and to automatically capture any further extensions, the Board is issuing this interim final rule to extend this exception to such loans made through March 31, 2022. DATES: This interim final rule is effective May 21, 2021. Comments on the interim final rule must be received no later than July 6, 2021. ADDRESSES: You may submit comments, identified by Docket No. R-1740 and RIN 7100 AG 10, by any of the following methods: • *Agency Website: http://www.federalreserve.gov.* Follow the instructions for submitting comments at *https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.* • *Email: regs.comments@federalreserve.gov.* Include docket and RIN numbers in the subject line of the message. • *Fax:*

(202)452-3819 or

(202)452-3102. • *Mail:* Ann E. Misback, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. All public comments will be made available on the Board's website at *http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm* as submitted, unless modified for technical reasons or to remove personally identifiable information at the commenter's request. Accordingly, comments will not be edited to remove any identifying or contact information. Public comments also may be viewed electronically or in paper form in Room 146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. and 5:00 p.m. on weekdays. FOR FURTHER INFORMATION CONTACT: Benjamin McDonough, Associate General Counsel,

(202)452-2036, Alison Thro, Deputy Associate General Counsel,

(202)452-3236, Daniel Hickman, Senior Counsel,

(202)973-7432, Josh Strazanac, Senior Attorney,

(202)452-2457, Jasmin Keskinen, Attorney,

(202)475-6650, Legal Division; or Anna Lee Hewko, Associate Director,

(202)530-6360, Juan Climent, Assistant Director,

(202)872-7526,

(202)452-5239, Kathryn Ballintine, Manager,

(202)452-2555, Rebecca Zak, Lead Financial Institution Policy Analyst,

(202)912-7995, Eusebius Luk, Senior Financial Policy Analyst I,

(202)452-2874, Division of Supervision and Regulation; Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. Users of Telecommunication Device for Deaf

(TDD)only, call

(202)263-4869. SUPPLEMENTARY INFORMATION: Table of Contents I. Background II. The Interim Final Rule III. Administrative Law Matters A. Administrative Procedure Act B. Paperwork Reduction Act C. Regulatory Flexibility Act D. Riegle Community Development and Regulatory Improvement Act of 1994 E. Use of Plain Language I. Background On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act which, among other things, created the Paycheck Protection Program

(PPP)to facilitate lending to small businesses affected by the outbreak of COVID-19 and the imposition of associated containment measures (COVID event). Although the CARES Act specified that the PPP would end on June 30, 2020, Congress later extended the program to August 8, 2020, and again to March 31, 2021. 1 On March 30, 2021, the President signed into law the PPP Extension Act of 2021 (PPP Extension Act), which further extended the PPP to June 30, 2021. 2 1 Prioritized Paycheck Protection Program Act, S. 4116, 116th Cong. section 1 (2020); Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, H.R. 133, 116th Cong. section 311 (2020). 2 PPP Extension Act of 2021, H.R. 1799, 117th Cong. section 2 (2021). Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O set forth quantitative and qualitative requirements for loans made by a bank 3 to its directors, executive officers, and principal shareholders, as well as to any companies owned by such persons (collectively, insiders). 4 Regulation O also sets forth procedural and recordkeeping requirements for loans by banks to their insiders. These requirements normally would apply to PPP loans made by banks to the small businesses owned by their insiders. In some cases, the restrictions in Regulation O could delay or entirely prohibit a bank from making a PPP loan to such a business. This could be particularly challenging in small communities where bank insiders often own small businesses and there are few alternative lenders. 3 Sections 22(g) and 22(h), and Regulation O, apply to all banks that are members of the Federal Reserve System. Other federal law subjects federally insured state non-member banks and insured savings associations to sections 22(g) and 22(h) in the same manner and to the same extent as if they were member banks. 12 U.S.C. 1828(j) (non-member banks); 12 U.S.C. 1468(b) (savings associations); 12 CFR 337.3 (state non-member banks and state savings associations); 12 CFR 31.2 (national banks and federal savings associations). Accordingly, any reference to “bank” in this notice applies to all member banks and institutions subject to sections 22(g) and 22(h) in the same manner and to the same extent as member banks. 4 *See generally* 12 U.S.C. 375a and 375b; 12 CFR part 215. On April 17, 2020, the Board issued an exception to section 22(h) and amended the corresponding provisions of Regulation O for PPP loans made to insiders that would not be prohibited from receiving a PPP loan under the Small Business Administration

(SBA)lending restrictions (original IFR). 5 The exception was intended to facilitate lending by banks to a broad range of small businesses within their communities, consistent with applicable law and safe and sound banking practices. The exception applied only to PPP loans made by June 30, 2020, the original date on which the PPP was set to expire. The Board has extended the exception each time that Congress has extended the PPP. 6 The Board responded to the dozen comments it received in response to the interim final rules issued in April and July in the interim final rule issued on February 17, 2021. 7 Since issuing its last interim final rule, the Board received two comments, neither of which discussed the interim final rules, sections 22(g) and 22(h), or Regulation O. 5 “Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks,” 85 FR 22345 (Apr. 22, 2020)). 6 “Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks,” 85 FR 43119 (July 16, 2020); “Loans to Executive Officers, Directors, and Principal Shareholders of Member Bank,” 86 FR 9837 (Feb. 17, 2021). 7 *Id.* at 9839. The Board is issuing this interim final rule to extend the exception to PPP loans made through June 30, 2021. 8 The exception will continue to apply if Congress and the President extend the PPP further, but will sunset on March 31, 2022. 8 References in this IFR to “PPP loans” include “PPP second draw loans,” which are PPP loans that that can be made to borrowers who already have received a first PPP loan. PPP second draw loans have the same features as PPP loans, except that fewer borrower are eligible for PPP second draw loans. For example, only borrowers with 300 or fewer employees may obtain a PPP second draw loan. *See* Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, H.R. 133, 116th Cong. section 311 (2020). II. The Interim Final Rule Section 22(h) authorizes the Board to adopt, by regulation, exceptions to the definition of “extension of credit” in section 22(h) for transactions that “pose minimal risk.” 9 Therefore, the Board may except PPP loans from the restrictions in section 22(h) and the corresponding provisions of Regulation O upon a determination that such loans pose minimal risk. 9 12 U.S.C. 375b(9)(D)(ii). The Board determined in the original IFR that PPP loans pose minimal risk. 10 Among other things, this determination relieved member banks from ensuring that PPP loans made to certain insiders complied with the qualitative, quantitative, and procedural requirements set forth in section 22(h) and Regulation O. The PPP Extension Act did not change any of the features of PPP loans on which the Board relied in the original IFR to determine that PPP loans pose minimal risk. Accordingly, for the same reasons cited in the original IFR, the Board has determined that PPP loans appear to pose minimal risk to bank safety and soundness. 11 10 85 FR 22345, 22346. 11 85 FR 22345, 22346 (Apr. 22, 2020); 85 FR 43119, 43119-20 (July 16, 2020); 86 FR 9837, 9838 (Feb. 17, 2021). The exception will continue to apply if Congress and the President further extend the PPP, provided that the material terms of the PPP on which the Board has justified the exception remain the same. Specifically, the exception will continue to apply to PPP loans made under an extended program as long as the SBA continues to fully guarantee the loans and the material terms of the loan, including the interest rate and term, are set by the SBA. The exception will not apply for any loans made after March 31, 2022. The duration of the sunset provision is consistent with other exceptions the Board has made in response to the COVID event. 12 12 *E.g.,* Temporary Exclusions of U.S. Treasury Securities and Deposits at Federal Reserve Banks From the Supplementary Leverage Ratio, 85 FR 20578 (Apr. 14, 2020). SBA lending restrictions continue to apply to PPP loans that are subject to section 22(h) and the corresponding provisions of Regulation O. 13 Excepting loans that would be prohibited by the SBA lending restrictions from the requirements of section 22(h) and the corresponding provisions in Regulation O would not achieve any meaningful regulatory purpose. Excepting these loans from one regime and not the other also may create confusion because some lenders may mistakenly interpret an exception under one regime to extend to both regimes. Accordingly, the exception continues to apply only for insiders that would not be prohibited from receiving a PPP loan by the SBA lending restrictions. 13 Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by the Economic Aid Act, 86 FR 3712 (Jan. 6, 2021). This interim final rule does not except a PPP loan from other restrictions that may apply to the loan, including section 22(g) of the Federal Reserve Act or section 215.5 of Regulation O. 14 This determination also does not affect application of SBA lending restrictions to a PPP loan. The SBA has stated that “[f]avoritism by [a PPP] [l]ender in processing time or prioritization of [a] director's or equity holder's PPP application is prohibited.” 15 The Board will administer the interim final rule accordingly. 14 12 U.S.C. 375a; 12 CFR 215.5. 15 86 FR 3712, 3696. *Question 1: Please describe any additional terms or conditions that should apply to the exception.* *Question 2: What are the advantages and disadvantages for the exception to automatically extend if the PPP is again extended?* III. Administrative Law Matters A. Administrative Procedure Act The Board is issuing the interim final rule without prior notice and the opportunity for public comment and the delayed effective date ordinarily prescribed by the Administrative Procedure Act (APA). 16 Pursuant to section 553(b)(B) of the APA, general notice and the opportunity for public comment are not required with respect to a rulemaking when an “agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.” 17 16 5 U.S.C. 553. 17 5 U.S.C. 553(b)(B). The Board believes that the public interest is best served by implementing the interim final rule immediately in light of the short timeframe for execution of the renewed PPP mandated by the PPP Extension Act. Accordingly, the Board finds that there is good cause consistent with the public interest to issue the rule without advance notice and comment. 18 18 5 U.S.C. 553(b)(B); 553(d)(3). The APA also requires a 30-day delayed effective date, except for

(1)substantive rules which grant or recognize an exemption or relieve a restriction;

(2)interpretative rules and statements of policy; or

(3)as otherwise provided by the agency for good cause. 19 Because the rules relieve a restriction by providing an exception to the definition of “extension of credit” in section 22(h) and Regulation O, the interim final rule is exempt from the APA's delayed effective date requirement. 20 19 5 U.S.C. 553(d). 20 5 U.S.C. 553(d)(1). While the Board believes that there is good cause to issue the rule without advance notice and comment and with an immediate effective date, the Board is interested in the views of the public and requests comment on all aspects of the interim final rule. B. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. 3501-3521)

(PRA)states that no agency may conduct or sponsor, nor is the respondent required to respond to, an information collection unless it displays a currently valid OMB control number. On June 15, 1984, OMB delegated to the Board authority under the PRA to approve and assign OMB control numbers to collections of information conducted or sponsored by the Board, as well as the authority to temporarily approve a new collection of information without providing opportunity for public comment if the Board determines that a change in an existing collection must be instituted quickly and that public participation in the approval process would defeat the purpose of the collection or substantially interfere with the Board's ability to perform its statutory obligations. This interim final rule does not contain any collections of information subject to the PRA. C. Regulatory Flexibility Act The Regulatory Flexibility Act

(RFA)21 requires an agency to consider whether the rules it proposes will have a significant economic impact on a substantial number of small entities. 22 The RFA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed previously, consistent with section 553(b)(B) of the APA, the Board has determined for good cause that general notice and opportunity for public comment are unnecessary, and therefore the Board is not issuing a notice of proposed rulemaking. Accordingly, the Board has concluded that the RFA's requirements relating to initial and final regulatory flexibility analysis do not apply. 21 5 U.S.C. 601 *et seq.* 22 Under regulations issued by the SBA, a small entity includes a depository institution, bank holding company, or savings and loan holding company with total assets of $600 million or less and trust companies with total assets of $41.5 million or less. *See* 13 CFR 121.201. Nevertheless, the Board seeks comment on whether, and the extent to which, the interim final rule affects a significant number of small entities. D. Riegle Community Development and Regulatory Improvement Act of 1994 Pursuant to section 302(a) of the Riegle Community Development and Regulatory Improvement Act (RCDRIA), 23 in determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions (IDIs), the federal banking agencies must consider, consistent with the principle of safety and soundness and the public interest, any administrative burdens that such regulations would place on depository institutions, including small depository institutions, and customers of depository institutions, as well as the benefits of such regulations. In addition, section 302(b) of RCDRIA requires new regulations and amendments to regulations that impose additional reporting, disclosures, or other new requirements on IDIs generally to take effect on the first day of a calendar quarter that begins on or after the date on which the regulations are published in final form, with certain exceptions, including for good cause. 24 The Board believes that the public interest is best served by implementing the interim final rule immediately. As discussed in the original IFR, the COVID event has disrupted economic activity in the United States and other countries. The magnitude and persistence of the COVID event on the economy continue to present some uncertainty. In light of the substantial disruptions in the economy, and the likelihood that this interim final rule will help ameliorate those disruptions by promoting lending to small businesses, the Board finds good cause exists under section 302 of RCDRIA to publish this interim final rule with an immediate effective date. 23 12 U.S.C. 4802(a). 24 12 U.S.C. 4802. As such, the interim final rule will be effective immediately on publication. Nevertheless, the Board seeks comment on RCDRIA. E. Use of Plain Language Section 722 of the Gramm-Leach-Bliley Act 25 requires the federal banking agencies to use plain language in all proposed and final rules published after January 1, 2000. The Board has sought to present the interim final rule in a simple and straightforward manner. The Board invites comments on whether there are additional steps it could take to make the rule easier to understand. For example: 25 12 U.S.C. 4809. • *Have we organized the material to suit your needs? If not, how could this material be better organized?* • *Are the requirements in the regulation clearly stated? If not, how could the regulation be more clearly stated?* • *Does the regulation contain language or jargon that is not clear? If so, which language requires clarification?* • *Would a different format (grouping and order of sections, use of headings, paragraphing) make the regulation easier to understand? If so, what changes to the format would make the regulation easier to understand?* • *What else could we do to make the regulation easier to understand?* List of Subjects in 12 CFR Part 215 Credit, Penalties, Reporting and recordkeeping requirements. Authority and Issuance For the reasons stated in the preamble, the Board of Governors of the Federal Reserve System amends 12 CFR chapter II as follows: PART 215—LOANS TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS OF MEMBER BANKS (REGULATION O) 1. The authority citation for part 215 continues to read as follows: Authority: 12 U.S.C. 248(a), 375a(10), 375b(9) and (10), 1468, 1817(k), 5412; and Pub. L. 102-242, 105 Stat. 2236

(1991)(12 U.S.C. 1811 note). 2. In § 215.3, revise paragraphs (b)(8)(i) through

(iii)and add paragraph (b)(8)(iv) to read as follows: § 215.3 Extension of credit.

(b)* * *

(8)* * *

(i)Made pursuant to the “Paycheck Protection Program” in which the participation by the Small Business Administration on a deferred basis is 100 percent;

(ii)For which material terms, including the maturity and the interest rate, are set by the Small Business Administration;

(iii)That is made during the “covered period,” as that term is defined in 15 U.S.C. 636(a)(36)(A)(iii), but in no case later than March 31, 2022; and

(iv)That would not be prohibited by 13 CFR 120.110(o) or rules or interpretations thereof issued by the Small Business Administration. By order of the Board of Governors of the Federal Reserve System. Ann Misback, Secretary of the Board. [FR Doc. 2021-10711 Filed 5-20-21; 8:45 am]

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