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MondayNovember 18, 1996Vol. 61 No. 223

Pages 58623–58766

11–18–96

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2

Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996

WASHINGTON, DC

[Two Sessions]WHEN: November 19, 1996 at 9:00 a.m.; and

December 10, 1996 at 9:00 a.m.WHERE: Office of the Federal Register

Conference Room800 North Capitol Street, NW.Washington, DC(3 blocks north of Union Station Metro)

RESERVATIONS: 202–523–4538

AUSTIN, TXWHEN: December 10, 1996

9:00 a.m. to 12:00 p.m.WHERE: Atrium

Lyndon Baines Johnson Library2313 Red River StreetAustin, TX

RESERVATIONS: 1–800–688–9889 x 0(Federal Information Center)

Contents Federal Register

III

Vol. 61, No. 223

Monday, November 18, 1996

Agriculture DepartmentSee Animal and Plant Health Inspection ServiceSee Food Safety and Inspection ServiceSee Forest ServiceSee Grain Inspection, Packers and Stockyards

Administration

Animal and Plant Health Inspection ServiceRULESInterstate transportation of animals and animal products

(quarantine):Brucellosis in cattle and bison—

State and area classifications, 58625–58626Overtime services relating to imports and exports:

Commuted traveltime allowances, 58626–58627

Antitrust DivisionNOTICESCompetitive impact statements and proposed consent

judgments:U.S. West, Inc., et al., 58703–58710

Army DepartmentNOTICESMilitary traffic management:

Cargo liability of carrier, 58678–58679Rate verification procedure change; requirement that

carriers file tenders of service to participate inForeign Military Sales (FMS) traffic, 58679

Children and Families AdministrationRULESFoster care maintenance payments, adoption assistance,

and child and family services under titles IV–B and IV–E of Social Security Act, 58632–58663

Commerce DepartmentSee National Oceanic and Atmospheric Administration

Commodity Futures Trading CommissionRULESCommodity Exchange Act:

Statutory disqualification from registration; interpretativestatement, 58627–58628

NOTICESContract market proposals:

Minneapolis Grain Exchange—Audit trail requirements; exemption, 58677–58678

Defense DepartmentSee Army Department

Energy DepartmentSee Energy Efficiency and Renewable Energy OfficeSee Federal Energy Regulatory Commission

Energy Efficiency and Renewable Energy OfficeNOTICESConsumer products; energy conservation program:

Representative average unit costs of energy, 58679–58680

Environmental Protection AgencyRULESAir programs:

Fuels and fuel additives—Minor revisions, 58744–58747

PROPOSED RULESAir quality implementation plans; approval and

promulgation; various States:Texas, 58671–58672

NOTICESAgency information collection activities:

Proposed collection; comment request, 58750–58751Meetings:

Gulf of Mexico Program Citizens Advisory Committee,58683

Science Advisory Board, 58683–58684Pesticide, food, and feed additive petitions:

Glufosinate-ammonium, 58684–58688Toxic and hazardous substances control:

Chemical testing—Data receipt, 58688

Executive Office of the PresidentSee Management and Budget OfficeSee Presidential Documents

Federal Aviation AdministrationPROPOSED RULESAirworthiness directives:

Boeing, 58667–58671Special conditions—

Embraer (Brazil) Aircraft Corp. model EMB-145airplane, 58665–58667

NOTICESPassenger facility charges; applications, etc.:

Bellingham International Airport, WA; correction, 58734Boston Logan International Airport, MA, 58734–58735Bradley International Airport, CT, 58735Burlington International Airport, VT, 58735–58736Kalamazoo/Battle Creek International Airport, MI, 58736

Federal Bureau of InvestigationNOTICESAgency information collection activities:

Proposed collection; comment request; correction, 58710

Federal Communications CommissionNOTICESInternational global telecommunications market entry;

Section 214 authorization process and tariffrequirements; streamlining, 58689–58690

Applications, hearings, determinations, etc.:Desert Broadcasting Corp., 58688

Federal Energy Regulatory CommissionNOTICESElectric rate and corporate regulation filings:

PMDC Netherlands B.V. et al., 58680–58683Environmental statements; availability, etc.:

Portland General Electric Co. et al., 58683

IV Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Contents

Federal Maritime CommissionNOTICESAgreements filed, etc., 58690

Federal Railroad AdministrationNOTICESLocomotives, remote-control, and one-person crews;

informal safety inquiry, 58736–58738

Federal Reserve SystemNOTICESBanks and bank holding companies:

Formations, acquisitions and mergers, 58690–58691Federal Reserve bank services:

Measuring daylight overdrafts; electronic Federal taxpayments, posting times; modified procedures; policystatement, 58691–58692

Federal Retirement Thrift Investment BoardRULESThrift savings plan:

Basic pay definition and Thrift Savings Plan loanprogram amendments, 58754–58757

Federal Trade CommissionNOTICESPremerger notification waiting periods; early terminations,

58692–58694

Fish and Wildlife ServiceNOTICESEnvironmental statements; availability, etc.:

Marshall County et al., KY; Clarks River NationalWildlife Refuge; establishment, 58699–58700

Food and Drug AdministrationRULESAnimal drugs, feeds, and related products:

New drug applications—Tylosin, 58631

Sponsor name and address changes—Alstoe, Ltd., Animal Health, 58630–58631

Food additives:Paper and paperboard components—

Acrylic acid, sodium salt copolymer withpolyethyleneglycol allyl ether, 58628–58629

Human drugs:Orally ingested (OTC) drug products containing alcohol

as inactive ingredient; maximum concentration limit,58629–58630

NOTICESAnimal drugs, feeds, and related products:

New drug applications—Countrymark Cooperative, Inc.; approval withdrawn,

58694Environmental statements; availability, etc.:

New drug applications or supplements—Paclitaxel, 58694–58695

Medical devices; premarket approval:Dade International, Inc.; aca plus PSA Test Kit, aca plus

PSA Calibrator, and aca plus PSA Control, 58695–58696

Spine-Tech, Inc.; BAK Interbody Fusion System, 58696

Food Safety and Inspection ServicePROPOSED RULESFederal regulatory review, 58664–58665

Forest ServiceNOTICESAgency information collection activities:

Proposed collection; comment request, 58673Environmental statements; availability, etc.:

Kootenai National Forest, MT, 58673–58675

Grain Inspection, Packers and Stockyards AdministrationNOTICESStockyards; posting and deposting:

Centre Livestock Market, Inc., et al., 58675Gray Bell Auction Co. et al., 58675

Health and Human Services DepartmentSee Children and Families AdministrationSee Food and Drug AdministrationSee Health Care Financing AdministrationSee National Institutes of HealthSee Public Health ServiceSee Substance Abuse and Mental Health Services

Administration

Health Care Financing AdministrationRULESMedicare:

End stage renal disease—Routine extended care services provided in swing-bed

hospital; new payment methodology; correction,58631

Indian Affairs BureauNOTICESReservation establishment, additions, etc.:

Redwood Valley Rancheria of Pomo Indians of California,58700

Interior DepartmentSee Fish and Wildlife ServiceSee Indian Affairs BureauSee Land Management BureauSee National Park Service

International Development Cooperation AgencySee Overseas Private Investment Corporation

Justice DepartmentSee Antitrust DivisionSee Federal Bureau of Investigation

Land Management BureauNOTICESPublic land orders:

California, 58700–58701Washington, 58701

Withdrawal and reservation of lands:New Mexico, 58702

Management and Budget OfficeNOTICESBalanced Budget and Emergency Deficit Control

Reaffirmation Act (Gramm-Rudman-Hollings):Sequestration update report; transmittal to President and

Congress, 58715

Maritime AdministrationRULESSubsidized vessels and operators:

Maritime security program; establishment, 58663

VFederal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Contents

National Highway Traffic Safety AdministrationNOTICESMeetings:

Research and development programs, 58738–58739

National Institutes of HealthNOTICESAgency information collection activities:

Submission for OMB review; comment request, 58697Meetings:

National Institute of Arthritis and Musculoskeletal andSkin Diseases, 58697–58698

National Oceanic and Atmospheric AdministrationNOTICESMeetings:

Gulf of Mexico Fishery Management Council, 58675–58676

Mid-Atlantic Fishery Management Council, 58676Permits:

Marine mammals, 58677

National Park ServiceNOTICESEnvironmental statements; availability, etc.:

Olympic National Park, WA, 58702

Nuclear Regulatory CommissionNOTICESEnvironmental statements; availability, etc.:

Houston Lighting & Power Co., 58710–58711Petitions; Director’s decisions:

Morris, C., 58711–58715

Office of Management and BudgetSee Management and Budget Office

Overseas Private Investment CorporationNOTICESHearings, 58702–58703

Postal ServiceNOTICESMeetings; Sunshine Act, 58715–58716

Presidential DocumentsPROCLAMATIONSWest Bank and the Gaza Strip and Qualifying Industrial

Zones; To Provide Duty-Free Treatment to Products(Proc. 6955), 58761–58765

EXECUTIVE ORDERSCommittees; establishment, renewal, termination, etc.:

President’s Commission on Critical InfrastructureProtection; amendment (EO 13025), 58623

Public Health ServiceSee Food and Drug AdministrationSee National Institutes of HealthSee Substance Abuse and Mental Health Services

AdministrationNOTICESMeetings:

National Toxicology Program; Scientific CounselorsBoard, 58698, 58698–58699

Research and Special Programs AdministrationNOTICESPipeline safety:

User fees, 58739

Securities and Exchange CommissionNOTICESAgency information collection activities:

Proposed collection; comment request, 58716Self-regulatory organizations; proposed rule changes:

New York Stock Exchange, Inc., 58728Applications, hearings, determinations, etc.:

Bando McGlocklin Capital Corp. et al., 58716–58718Central and South West Corp., et al., 58718–58725Merrill Lynch Variable Series Funds, Inc. et al., 58725–

58728

State DepartmentNOTICESCanada-United States air quality agreement:

Air Quality Committee 1996 progress report;transboundary air pollution reduction; inquiry,58728–58729

Meetings:International Communications and Information Policy

Advisory Committee, 58729International Economic Policy of Working Group on

Economic Sanctions Advisory Committee, 58729U.S. foreign policy economic sanctions programs, 58729–

58730Visas; immigrant documentation:

Diversity immigrant visa program; registration, 58730–58731

Substance Abuse and Mental Health ServicesAdministration

NOTICESGrants and cooperative agreements; availability, etc.:

Center for Substance Abuse Prevention and Center forSubstance Abuse Treatment—

Receipt date cancellation, 58699

Surface Transportation BoardNOTICESRailroad operation, acquisition, construction, etc.:

Delaware Valley Railway Co., Inc., 58739Genesee & Wyoming, Inc., 58739–58740

Tennessee Valley AuthorityNOTICESMeetings; Sunshine Act, 58731–58732

Transportation DepartmentSee Federal Aviation AdministrationSee Federal Railroad AdministrationSee Maritime AdministrationSee National Highway Traffic Safety AdministrationSee Research and Special Programs AdministrationSee Surface Transportation BoardNOTICESAgency information collection activities:

Submission for OMB review; comment request, 58732–58733

Aviation proceedings:Agreements filed; weekly receipts, 58733Certificates of public convenience and necessity and

foreign air carrier permits; weekly applications,58733–58734

United States Institute of PeaceNOTICESMeetings; Sunshine Act, 58740

VI Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Contents

Veterans Affairs DepartmentNOTICESCommittees; establishment, renewal, termination, etc.:

Future of VA Long-Term Care Advisory Committee,58740

Meetings:Former Prisoners of War Advisory Committee, 58740–

58741

Separate Parts In This Issue

Part IIEnvironmental Protection Agency, 58744–58747

Part IIIEnvironmental Protection Agency, 58750–58751

Part IVFederal Retirement Thrift Investment Board, 58754–58757

Part VThe President, 58761–58765

Reader AidsAdditional information, including a list of public laws,telephone numbers, reminders, and finding aids, appears inthe Reader Aids section at the end of this issue.

Electronic Bulletin BoardFree Electronic Bulletin Board service for Public Lawnumbers, Federal Register finding aids, and a list ofdocuments on public inspection is available on 202–275–1538 or 275–0920.

CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in theReader Aids section at the end of this issue.

VIIFederal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Contents

3 CFRProclamations:6955.................................58761Executive Orders:13010 (Amended by

EO 13025)....................5862313025...............................58623

5 CFR1600.................................587541620.................................587541655.................................58754

9 CFR78.....................................5862597.....................................59626Proposed Rules:Ch. III ...............................58664

14 CFRProposed Rules:25.....................................5866539 (2 documents) ...........58667,

58669

17 CFR3.......................................58627

21 CFR176...................................58628328...................................58629510 (2 documents) .........58630,

58631558...................................58631

40 CFR79.....................................5874480.....................................58744Proposed Rules:52.....................................58671

42 CFR413...................................58631

45 CFR1355.................................586321356.................................586321357.................................58632

46 CFR295...................................58663

Presidential Documents

58623

Federal Register

Vol. 61, No. 223


Title 3—

The President

Executive Order 13025 of November 13, 1996

Amendment to Executive Order 13010, the President’sCommission on Critical Infrastructure Protection

By the authority vested in me as President by the Constitution and thelaws of the United States of America, and in order to amend ExecutiveOrder 13010, it is hereby ordered as follows:

Section 1. The first sentence of section 1(a) of Executive Order 13010 shallread ‘‘A qualified individual from outside the Federal Government shallbe designated by the President from among the members to serve as Chairof the Commission.’’

Sec. 2. The second and third sentences of section 3 of Executive Order13010 shall read ‘‘The Steering Committee shall comprise five members.Four of the members shall be appointed by the President, and the fifthmember shall be the Chair of the Commission. Two of the members ofthe Committee shall be employees of the Executive Office of the President.’’

Sec. 3. The first sentence of section 5 of Executive Order 13010 shallbe amended by deleting ‘‘ten’’ and inserting ‘‘15’’ in lieu thereof.

œ–THE WHITE HOUSE,November 13, 1996.

[FR Doc. 96–29597

Filed 11–15–96; 8:45 am]

Billing code 3195–01–P

This section of the FEDERAL REGISTERcontains regulatory documents having generalapplicability and legal effect, most of whichare keyed to and codified in the Code ofFederal Regulations, which is published under50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold bythe Superintendent of Documents. Prices ofnew books are listed in the first FEDERALREGISTER issue of each week.

Rules and Regulations Federal Register

58625

Vol. 61, No. 223


DEPARTMENT OF AGRICULTURE

Animal and Plant Health InspectionService

9 CFR Part 78

[Docket No. 96–045–1]

Brucellosis in Cattle; State and AreaClassifications; New Mexico

AGENCY: Animal and Plant HealthInspection Service, USDA.ACTION: Interim rule and request forcomments.

SUMMARY: We are amending thebrucellosis regulations concerning theinterstate movement of cattle bychanging the classification of NewMexico from Class A to Class Free. Wehave determined that New Mexicomeets the standards for Class Freestatus. This action relieves certainrestrictions on the interstate movementof cattle from New Mexico.DATES: Interim rule effective November18, 1996. Consideration will be givenonly to comments received on or beforeJanuary 17, 1997.ADDRESSES: Please send an original andthree copies of your comments toDocket No. 96–045–1, RegulatoryAnalysis and Development, PPD,APHIS, Suite 3C03, 4700 River Road,Unit 118, Riverdale, MD 20737–1238.Please state that your comments refer toDocket No. 96–045–1. Commentsreceived may be inspected at USDA,room 1141, South Building, 14th Streetand Independence Avenue, SW.,Washington, DC, between 8 a.m. and4:30 p.m., Monday through Friday,except holidays. Persons wishing toinspect comments are requested to callahead on (202) 690–2817 to facilitateentry into the comment reading room.FOR FURTHER INFORMATION CONTACT: Dr.Michael J. Gilsdorf, Senior StaffVeterinarian, Cattle Diseases andSurveillance Staff, VS, APHIS, Suite

3B08, 4700 River Road Unit 36,Riverdale, MD 20737–1231, (301) 734–7708.

SUPPLEMENTARY INFORMATION:

BackgroundBrucellosis is a contagious disease

affecting animals and humans, causedby bacteria of the genus Brucella.

The brucellosis regulations, containedin 9 CFR part 78 (referred to below asthe regulations), provide a system forclassifying States or portions of Statesaccording to the rate of Brucellainfection present, and the generaleffectiveness of a brucellosis control anderadication program. The classificationsare Class Free, Class A, Class B, andClass C. States or areas that do not meetthe minimum standards for Class C arerequired to be placed under Federalquarantine.

The brucellosis Class Freeclassification is based on a finding of noknown brucellosis in cattle for the 12months preceding classification as ClassFree. The Class C classification is forStates or areas with the highest rate ofbrucellosis. Class B and Class A fallbetween these two extremes.Restrictions on moving cattle interstatebecome less stringent as a Stateapproaches or achieves Class Freestatus.

The standards for the differentclassifications of States or areas entail(1) maintaining a cattle herd infectionrate not to exceed a stated level during12 consecutive months; (2) tracing backto the farm of origin and successfullyclosing a stated percent of all brucellosisreactors found in the course of MarketCattle Identification (MCI) testing; (3)maintaining a surveillance system thatincludes testing of dairy herds,participation of all recognizedslaughtering establishments in the MCIprogram, identification and monitoringof herds at high risk of infection(including herds adjacent to infectedherds and herds from which infectedanimals have been sold or received),and having an individual herd plan ineffect within a stated number of daysafter the herd owner is notified of thefinding of brucellosis in a herd he or sheowns; and (4) maintaining minimumprocedural standards for administeringthe program.

Before the effective date of thisinterim rule, New Mexico was classifiedas a Class A State.

To attain and maintain Class Freestatus, a State or area must (1) remainfree from field strain Brucella abortusinfection for 12 consecutive months orlonger; (2) trace back at least 90 percentof all brucellosis reactors found in thecourse of MCI testing to the farm oforigin; (3) successfully close at least 95percent of the MCI reactor cases tracedto the farm of origin during the 12consecutive month period immediatelyprior to the most recent anniversary ofthe date the State or area was classifiedClass Free; and (4) have a specifiedsurveillance system, as described above,including an approved individual herdplan in effect within 15 days of locatingthe source herd or recipient herd.

After reviewing the brucellosisprogram records for New Mexico, wehave concluded that this State meets thestandards for Class Free status.Therefore, we are removing New Mexicofrom the list of Class A States in§ 78.41(b) and adding it to the list ofClass Free States in § 78.41(a). Thisaction relieves certain restrictions onmoving cattle interstate from NewMexico.

Immediate Action

The Administrator of the Animal andPlant Health Inspection Service hasdetermined that there is good cause forpublishing this interim rule withoutprior opportunity for public comment.Immediate action is warranted toremove unnecessary restrictions on theinterstate movement of cattle from NewMexico.

Because prior notice and other publicprocedures with respect to this actionare impracticable and contrary to thepublic interest under these conditions,we find good cause under 5 U.S.C. 553to make it effective upon publication inthe Federal Register. We will considercomments that are received within 60days of publication of this rule in theFederal Register. After the commentperiod closes, we will publish anotherdocument in the Federal Register. Itwill include a discussion of anycomments we receive and anyamendments we are making to the ruleas a result of the comments.

Executive Order 12866 and RegulatoryFlexibility Act

This rule has been reviewed underExecutive Order 12866. For this action,the Office of Management and Budget

58626 Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Rules and Regulations

has waived its review process requiredby Executive Order 12866.

Cattle moved interstate are moved forslaughter, for use as breeding stock, orfor feeding. Changing the brucellosisstatus of New Mexico from Class A toClass Free will promote economicgrowth by reducing certain testing andother requirements governing theinterstate movement of cattle from thisState. Testing requirements for cattlemoved interstate for immediateslaughter or to quarantined feedlots arenot affected by this change. Cattle fromcertified brucellosis-free herds movinginterstate are not affected by thischange.

The groups affected by this action willbe herd owners in New Mexico, as wellas buyers and importers of cattle fromthis State.

There are an estimated 29,000 cattleherds in New Mexico that would beaffected by this rule. Ninety-eightpercent of these are owned by smallentities. Test-eligible cattle offered forsale interstate from other than certified-free herds must have a negative testunder present Class A statusregulations, but not under regulationsconcerning Class Free status. If suchtesting were distributed equally amongall herds affected by this rule, Class Freestatus would save approximately $5.56per herd.

Therefore, we believe that changingthe brucellosis status of New Mexicowill not have a significant economicimpact on the small entities affected bythis interim rule.

Under these circumstances, theAdministrator of the Animal and PlantHealth Inspection Service hasdetermined that this action will nothave a significant economic impact ona substantial number of small entities.

Executive Order 12372

This program/activity is listed in theCatalog of Federal Domestic Assistanceunder No. 10.025 and is subject toExecutive Order 12372, which requiresintergovernmental consultation withState and local officials. (See 7 CFR part3015, subpart V.)


This rule has been reviewed underExecutive Order 12988, Civil JusticeReform. This rule: (1) Preempts all Stateand local laws and regulations that arein conflict with this rule; (2) has noretroactive effect; and (3) does notrequire administrative proceedingsbefore parties may file suit in courtchallenging this rule.

Paperwork Reduction Act

This document contains noinformation collection or recordkeepingrequirements under the PaperworkReduction Act of 1980 (44 U.S.C. 3501et seq.).

List of Subjects in 9 CFR Part 78

Animal diseases, Bison, Cattle, Hogs,Quarantine, Reporting andrecordkeeping requirements,Transportation.

Accordingly, 9 CFR part 78 isamended as follows:

PART 78—BRUCELLOSIS

1. The authority citation for part 78continues to read as follows:

Authority: 21 U.S.C. 111–114a–1, 114g,115, 117, 120, 121, 123–126, 134b, and 134f;7 CFR 2.22, 2.80, and 371.2(d).

§ 78.41 [Amended]

2. In § 78.41, paragraph (a) isamended by adding ‘‘New Mexico,’’immediately after ‘‘New Jersey,’’.

3. In § 78.41, paragraph (b) isamended by removing ‘‘New Mexico,’’.

Done in Washington, DC, this 12th day ofNovember 1996.A. Strating,Acting Administrator, Animal and PlantHealth Inspection Service.[FR Doc. 96–29476 Filed 11–15–96; 8:45 am]BILLING CODE 3410–34–P

9 CFR Part 97

[Docket No. 96–074–1]

Commuted Traveltime Periods:Overtime Services Relating to Importsand Exports

AGENCY: Animal and Plant HealthInspection Service, USDA.ACTION: Final rule.

SUMMARY: We are amending theregulations concerning overtimeservices provided by employees ofVeterinary Services by addingcommuted traveltime allowances fortravel between various locations in NewYork and Vermont. Commutedtraveltime allowances are the periods oftime required for Veterinary Servicesemployees to travel from their dispatchpoints and return there from the placeswhere they perform Sunday, holiday, orother overtime duty. The Governmentcharges a fee for certain overtimeservices provided by VeterinaryServices employees and, under certaincircumstances, the fee may include thecost of commuted traveltime. Thisaction is necessary to inform the public

of commuted traveltime for theselocations.EFFECTIVE DATE: November 18, 1996.FOR FURTHER INFORMATION CONTACT: Ms.Louise Rakestraw Lothery, Director,Resource Management Support Staff,VS, APHIS, Suite 3B08, 4700 River RoadUnit 44, Riverdale, MD 20737–1231,(301) 734–7517, or e-mail:[email protected].


BackgroundThe regulations in 9 CFR, chapter I,

subchapter D, and 7 CFR, chapter III,require inspection, laboratory testing,certification, or quarantine of certainanimals, animal byproducts, plants,plant products, or other commoditiesintended for importation into, orexportation from, the United States.When these services must be providedby an employee of Veterinary Services(VS) on a Sunday or holiday, or at anyother time outside the VS employee’sregular duty hours, the Governmentcharges a fee for the services inaccordance with 9 CFR part 97. Undercircumstances described in § 97.1(a),this fee may include the cost ofcommuted traveltime. Section 97.2contains administrative instructionsprescribing commuted traveltimeallowances, which reflect, as nearly aspracticable, the periods of time requiredfor VS employees to travel from theirdispatch points and return there fromthe places where they perform Sunday,holiday, or other overtime duty.

We are amending § 97.2 of theregulations by adding commutedtraveltime allowances for travel betweenvarious locations in New York andVermont. The amendments are set forthin the rule portion of this document.This action is necessary to inform thepublic of the commuted traveltimebetween the dispatch and servicelocations.

Effective DateThe commuted traveltime allowances

appropriate for employees performingservices at ports of entry, and thefeatures of the reimbursement plan forrecovering the cost of furnishing port ofentry services, depend upon factswithin the knowledge of the Departmentof Agriculture. It does not appear thatpublic participation in this rulemakingproceeding would make additionalrelevant information available to theDepartment.

Accordingly, pursuant to theadministrative procedure provisions in5 U.S.C. 553, we find upon good causethat prior notice and other publicprocedure with respect to this rule are

58627Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Rules and Regulations

1 The Interpretative Statement is printed asAppendix A following the Commission’s part 3(Registration) rules, 17 CFR part 3.

2 It states, for example, that the Commissioninterprets paragraph (M) as authorizing theCommission to refuse to register a person if he orshe is the subject of an administrative actionbrought by the Commission to revoke the person’sexisting registration, pending a final determinationin that proceeding.

impracticable and unnecessary; we alsofind good cause for making this ruleeffective less than 30 days afterpublication of this document in theFederal Register.

Executive Order 12866 and RegulatoryFlexibility Act

This final rule has been reviewedunder Executive Order 12866. For thisaction, the Office of Management andBudget has waived its review processrequired by Executive Order 12866.

The number of requests for overtimeservices of a VS employee at thelocations affected by our rule representsan insignificant portion of the totalnumber of requests for these services inthe United States.

Under these circumstances, theAdministrator of the Animal and PlantHealth Inspection Service hasdetermined that this action will nothave a significant economic impact ona substantial number of small entities.


This program/activity is listed in theCatalog of Federal Domestic Assistanceunder No. 10.025 and is subject toExecutive Order 12372, which requiresintergovernmental consultation withState and local officials. (See 7 CFR part3015, subpart V.)


This final rule has been reviewedunder Executive Order 12988, CivilJustice Reform. This rule is intended tohave preemptive effect with respect toany State or local laws, regulations, orpolicies that conflict with its provisionsor that would otherwise impede its fullimplementation. This rule is notintended to have retroactive effect.There are no administrative proceduresthat must be exhausted prior to anyjudicial challenge to the provisions ofthis rule or the application of itsprovisions.


This rule contains no newinformation collection or recordkeepingrequirements under the PaperworkReduction Act of 1995 (44 U.S.C. 3501et seq.).


Exports, Government employees,Imports, Livestock, Poultry and poultryproducts, Travel and transportationexpenses.

Accordingly, 9 CFR part 97 isamended as follows:

PART 97—OVERTIME SERVICESRELATING TO IMPORTS ANDEXPORTS


Authority: 7 U.S.C. 2260; 49 U.S.C. 1741;7 CFR 2.22, 2.80, and 371.2(d).

2. Section 97.2 is amended by addingin the table, in alphabetical order, underNew York and Vermont, the followingentries to read as follows:

§ 97.2 Administrative instructionsprescribing commuted traveltime.

* * * * *

COMMUTED TRAVELTIME ALLOWANCES

[In hours]

Locationscovered

Servedfrom

Metropolitan area

Within Outside

[Add]

* * * * *New York:

* * * * *Champlain Highgate,

VT.1

* * * * *Vermont:

* * * * *Highgate .................. 1

* * * * *

Done in Washington, DC, this 12th day ofNovember 1996.A. Strating,Acting Administrator, Animal and PlantHealth Inspection Service.[FR Doc. 96–29477 Filed 11–15–96; 8:45 am]BILLING CODE 3410–34–P

COMMODITY FUTURES TRADINGCOMMISSION

17 CFR Part 3

Amendment to InterpretativeStatement Regarding StatutoryDisqualification From Registration

AGENCY: Commodity Futures TradingCommission.ACTION: Publication of AmendedInterpretative Statement.

SUMMARY: The Commodity FuturesTrading Commission has determined toamend its interpretation of the ‘‘forother good cause’’ standard contained inthe Commission’s InterpretativeStatement With Respect to Section 8a(2)(C) and (E) and Section 8a(3) (J) and (M)

of the Commodity Exchange Act. Theamendment revises the existingstatement by clarifying that violation ofa settlement agreement with a contractmarket, registered futures association orother self-regulatory organization towithdraw from registration and/or not toapply for registration constitutes ‘‘othergood cause’’ for adverse registrationaction under Section 8a(3)(M) of theCommodity Exchange Act, 7 U.S.C.12a(3)(M).EFFECTIVE DATE: November 18, 1996.FOR FURTHER INFORMATION CONTACT:Stephen Mihans, Senior Attorney,Division of Enforcement, CommodityFutures Trading Commission, ThreeLafayette Centre, 1155 21st Street, NW,Washington, DC. 20581. Telephone:(202) 418–5399.SUPPLEMENTARY INFORMATION: TheCommodity Futures TradingCommission (‘‘Commission’’) hasdetermined to amend its InterpretativeStatement With Respect to Section 8a(2)(C) and (E) and Section 8a(3) (J) and (M)of the Commodity Exchange Act(‘‘Interpretative Statement’’) by addinglanguage clarifying that an applicant’sviolation of an explicit agreement, madein the context of a settlement with acontract market, registered futuresassociation or other self-regulatoryorganization (‘‘SRO’’), to withdraw fromregistration and/or not to apply forregistration constitutes ‘‘other goodcause’’ for adverse registration actionunder section 8a(3)(M) of theCommodity Exchange Act, 7 U.S.C.12a(3)(M).1

The Commission’s InterpretativeStatement, among other things, providesguidance on the scope and meaning ofsection 8a(3)(M), 7 U.S.C. 12a(3)(M), byidentifying situations in which ‘‘othergood cause’’ to affect a person’sregistration exists. 2 The Commission,by this release, amends theInterpretative Statement to describe anadditional situation in which ‘‘othergood cause’’ will be deemed to exist—namely, when a person, in a settlementwith a contract market, registeredfutures association or other SRO, agreesto withdraw from and/or not to applyfor Commission registration and thenfails to withdraw from registration orapplies for registration in violation ofthat agreement. Neither the existing


Interpretative Statement nor thestatutory bases for adverse registrationaction set forth in Section 8a of the Act,7 U.S.C. § 12a, establish a specific basisfor denying or otherwise affectingregistration in this situation. TheCommission is publishing itsamendment of the 8a(3)(M)Interpretative Statement to inform thepublic that failure to comply with anexchange or other SRO settlementagreement to withdraw from registrationand/or not to apply for registrationconstitutes ‘‘other good cause’’ to denyor otherwise affect registration underSection 8a(3)(M).

List of Subjects in 17 CFR Part 3Registration, Statutory

disqualifications.

PART 3—[AMENDED]

For the reasons set forth above, part3 of title 17 of the Code of FederalRegulations is amended as follows:

1. The authority citation for Part 3continues to read as follows:

Authority: 7 U.S.C. 1a, 2, 4, 4a, 6, 6b, 6c,6d, 6e, 6f, 6g, 6h, 6i, 6k, 6m, 6n, 6o, 6p, 8,9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21, 23;5 U.S.C. 552, 552b.

Appendix A to Part 3 [Amended]

2. Appendix A to part 3 is amendedby adding a new paragraph after theparagraph which bears the heading‘‘Section 8a(3)(M),’’ to read as follows:* * * * *

Similarly, the Commission interpretsparagraph (M) to authorize theCommission to refuse to register,register conditionally or otherwise affectthe registration of any person if suchperson has consented, in connectionwith an agreement of settlement with acontract market, a registered futuresassociation, or any other self-regulatoryorganization, to comply with anundertaking to withdraw all forms ofexisting or pending registration and/ornot to apply for registration with theNational Futures Association or theCommission in any capacity. Suchperson’s effort to violate his or her priorundertaking to withdraw from and/ornot to apply for registration shall beconsidered to constitute ‘‘other goodcause’’ under paragraph (M). TheCommission believes that allowing sucha person to be registered would beinappropriate and inconsistent with theintention of parties to the priorsettlement agreement. The failure towithdraw or the attempt to register inthe face of such an undertaking wouldindicate the lack of fair and honestdealing which the Commission believesconstitutes ‘‘other good cause’’ for

denying, revoking or conditioningregistration under the Act. TheCommission also believes that allowingregistration in such a situation would beinconsistent with both Section 8a(2)(A),which authorizes the Commission torefuse to register, to registerconditionally, or to revoke, suspend orplace restrictions upon the registrationof any person if such person’s priorregistration has been suspended (andthe period of such suspension has notexpired) or has been revoked, andSection 8a(3)(J), which authorizes theCommission to refuse to register or toregister conditionally any person if heor she is subject to an outstanding orderdenying, suspending, or expelling suchperson from membership in a contractmarket, a registered futures association,or any other self-regulatoryorganization.

Issued in Washington, D.C., on October 31,1996.Jean A. Webb,Secretary to the Commission, CommodityFutures Trading Commission.[FR Doc. 96–28842 Filed 11–15–96; 8:45 am]BILLING CODE 6351–01–M

DEPARTMENT OF HEALTH ANDHUMAN SERVICES

Food and Drug Administration

21 CFR Part 176

[Docket No. 94F–0257]

Indirect Food Additives: Paper andPaperboard Components

AGENCY: Food and Drug Administration,HHS.ACTION: Final rule.

SUMMARY: The Food and DrugAdministration (FDA) is amending thefood additive regulations to provide forthe safe use of the copolymer of thesodium salt of acrylic acid withpolyethyleneglycol allyl ether in papermill boilers. This action is in responseto a petition filed by Betz Laboratories,Inc.DATES: Effective November 18, 1996;written objections and requests for ahearing by December 18, 1996.ADDRESSES: Submit written objections tothe Dockets Management Branch (HFA–305), Food and Drug Administration,12420 Parklawn Dr., rm. 1–23,Rockville, MD 20857.FOR FURTHER INFORMATION CONTACT: JohnR. Bryce, Center for Food Safety andApplied Nutrition (HFS–216), Food andDrug Administration, 200 C St. SW.,Washington, DC 20204, 202–418–3023.

SUPPLEMENTARY INFORMATION: In a noticepublished in the Federal Register ofAugust 19, 1994 (59 FR 42837), FDAannounced that a food additive petition(FAP 4B4426) had been filed by BetzLaboratories, Inc., 4636 Somerton Rd.,Trevose, PA 19053–6783. The petitionproposed to amend the food additiveregulations in § 176.170 Components ofpaper and paperboard in contact withaqueous and fatty foods (21 CFR176.170) to provide for the safe use ofthe copolymer of the sodium salt ofacrylic acid with polyethyleneglycolallyl ether in paper mill boilers.

FDA has evaluated the data andinformation in the petition and otherrelevant material. The agency concludesthat the proposed use of the additive asan anticorrosion agent in paper millboilers is safe, that it will achieve itsintended technical effect, and that theregulations in § 176.170 should beamended as set forth below.

In accordance with § 171.1(h) (21 CFR171.1(h)), the petition and thedocuments that FDA considered andrelied upon in reaching its decision toapprove the petition are available forinspection at the Center for Food Safetyand Applied Nutrition by appointmentwith the information contact personlisted above. As provided in § 171.1(h),the agency will delete from thedocuments any materials that are notavailable for public disclosure beforemaking the documents available forinspection.

The agency has carefully consideredthe potential environmental effects ofthis action. In the August 19, 1994,notice of filing, the agency announcedthat it was placing the petitioner’senvironmental assessment on publicdisplay and provided 30 days forcomments on that assessment. FDAreceived no comments on theassessment. Based upon the informationavailable, FDA has concluded that theaction will not have a significant impacton the human environment, and that anenvironmental impact statement is notrequired. The agency’s finding of nosignificant impact and the evidencesupporting that finding, contained in anenvironmental assessment, may be seenin the Dockets Management Branch(address above) between 9 a.m. and 4p.m., Monday through Friday.

Any person who will be adverselyaffected by this regulation may at anytime on or before December 18, 1996,file with the Dockets ManagementBranch (address above) writtenobjections thereto. Each objection shallbe separately numbered, and eachnumbered objection shall specify withparticularity the provisions of theregulation to which objection is made


and the grounds for the objection. Eachnumbered objection on which a hearingis requested shall specifically so state.Failure to request a hearing for anyparticular objection shall constitute awaiver of the right to a hearing on thatobjection. Each numbered objection forwhich a hearing is requested shallinclude a detailed description andanalysis of the specific factualinformation intended to be presented insupport of the objection in the eventthat a hearing is held. Failure to includesuch a description and analysis for anyparticular objection shall constitute awaiver of the right to a hearing on theobjection. Three copies of all documentsshall be submitted and shall beidentified with the docket numberfound in brackets in the heading of thisdocument. Any objections received in

response to the regulation may be seenin the Dockets Management Branchbetween 9 a.m. and 4 p.m., Mondaythrough Friday.


Food additives, Food packaging.Therefore, under the Federal Food,

Drug, and Cosmetic Act and underauthority delegated to the Commissionerof Food and Drugs and redelegated tothe Director, Center for Food Safety andApplied Nutrition, 21 CFR part 176 isamended as follows:

PART 176—INDIRECT FOODADDITIVES: PAPER ANDPAPERBOARD COMPONENTS

1. The authority citation for 21 CFRpart 176 continues to read as follows:

Authority: Secs. 201, 402, 406, 409, 721 ofthe Federal Food, Drug, and Cosmetic Act (21U.S.C. 321, 342, 346, 348, 379e).

2. Section 176.170 is amended in thetable in paragraph (a)(5) byalphabetically adding a new entry underthe headings ‘‘List of Substances’’ and‘‘Limitations’’ to read as follows:

§ 176.170 Components of paper andpaperboard in contact with aqueous andfatty foods.

* * * * *(a) * * *(5) * * *

List of Substances Limitations

* * * * * * *Acrylic acid, sodium salt copolymer with polyethyleneglycol allyl ether

(CAS Reg. No. 86830–15–1).For use only in paper mill boilers.

* * * * * * *

* * * * *Dated: October 25, 1996.

Fred R. Shank,Director, Center for Food Safety and AppliedNutrition.[FR Doc. 96–29393 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F

21 CFR Part 328

[Docket No. 95N–0341]

Over-the-Counter Drug ProductsIntended for Oral Ingestion thatContain Alcohol; Amendment of FinalRule


SUMMARY: The Food and DrugAdministration (FDA) is issuing a finalrule amending the regulations for over-the-counter (OTC) drug productsintended for oral ingestion that containalcohol as an inactive ingredient byexempting ipecac syrup from themaximum concentration limits of 0.5percent alcohol or less when used bychildren under 6 years of age. This finalrule is part of the ongoing review ofOTC drug products conducted by FDA.EFFECTIVE DATE: December 18, 1996.

FOR FURTHER INFORMATION CONTACT:William E. Gilbertson, Center for DrugEvaluation and Research (HFD–105),Food and Drug Administration, 5600Fishers Lane, Rockville, MD 20857,301–827–2304.


I. Background

In the Federal Register of March 13,1995 (60 FR 13590), the agency issueda final rule establishing in § 328.10 (21CFR 328.10) maximum concentrationlimits for alcohol (ethyl alcohol) as aninactive ingredient in OTC drugproducts intended for oral ingestion.The maximum concentration limit wasset at 0.5 percent for any OTC drugproduct labeled for use by childrenunder 6 years of age, and 5 percent forany OTC drug product labeled for useby children 6 to under 12 years of age.The final rule did not discuss ipecacsyrup, an OTC drug product used tocause vomiting when poisoning occurs.

The United States Pharmacopeia(USP) 23d Revision states that alcohol iscontained in ipecac syrup inconcentrations between 1.0 and 2.5percent (Ref. 1). Alcohol is used in thepreparation of the syrup to ensure thecomplete extraction of alkaloids as theiramine salts from ipecac powder and toreject extraneous material when ipecac

syrup is prepared by percolation (Ref.2).

Under § 201.308(c) (21 CFR201.308(c)), OTC marketing of ipecacsyrup is limited to a 1-fluid-ounce (30milliliters (mL)) package. The product’slabeling must contain a statementconspicuously boxed and in red lettersthat states: ‘‘For emergency use to causevomiting in poisoning. Before using, callphysician, the Poison Control Center, orhospital emergency room immediatelyfor advice.’’ The labeling also muststate: ‘‘Usual dosage: 1 tablespoon (15milliliters) in persons over 1 year ofage.’’

As part of the rulemaking for OTCpoison treatment drug products (50 FR2244, January 15, 1985), the agencyproposed a dose of 1 tablespoonful (15mL or 1/2 bottle) of ipecac syrup forchildren 1 to under 12 years of age. Theagency also proposed a dose of 1teaspoonful (5 mL) for children 6months to under 1 year of age, and thatipecac syrup not be given to childrenunder 6 months of age unless directedby a health professional. The agencywill finalize these directions for use ina future issue of the Federal Register.

In the Federal Register of May 10,1996 (61 FR 21392), the agencypublished a proposed amendment of§ 328.10 to exempt ipecac syrup fromthe requirements of § 328.10(d), which


limit alcohol content to 0.5 percent orless in OTC drug products intended fororal ingestion for use by children 6years of age or less.

The agency noted that the maximumamount of ipecac syrup per packagedcontainer does not exceed 30 mL, andthe maximum quantity of alcohol at a2.5 percent concentration contained in30 mL of ipecac syrup is 0.75 mL. If achild under 6 years old swallowed theentire contents of a 30 mL container ofipecac syrup, the ingested amount ofalcohol (0.75 mL) is insignificant. Thelabeled dose of ipecac syrup is a one-time treatment of 15 mL (0.375 mLalcohol) for children 1 to under 12 yearsof age. In addition, the alcohol and theipecac syrup are generally vomitedtogether with other stomach contents.Thus, the benefit of ipecac syrup as anemetic outweighs any risk of adverseeffects from ingestion of 0.375 to 0.75mL of alcohol.

Interested persons were invited tosubmit comments by June 10, 1996, andcomments on the agency’s economicimpact determination by June 10, 1996.No comments were submitted inresponse to the proposed rule.

II. References

(1) United States Pharmacopeia 23/National Formulary 18, United StatesPharmacopeial Convention, Inc., Rockville,MD, pp. 834–835, 1994.

(2) ‘‘Solutions Using Mixed SolventSystems: Spirits, Elixirs, and ExtractedProducts,’’ in Sprowls’ American Pharmacy,7th ed., J. B. Lipincott Co., Philadelphia, pp.100–101, 1974.

III. The Agency’s Final ConclusionsThe agency is adding new § 328.10(f)

to state: ‘‘Ipecac syrup is exempt fromthe provisions of paragraph (d) of thissection.’’ This means that ipecac syrupmay contain more than 0.5 percentalcohol even though labeled for use bychildren under 6 years of age. Also, theagency is redesignating current§ 328.10(f) as § 328.10(g).

IV. Analysis of ImpactsNo comments regarding the economic

impact of the proposed rulemaking werereceived.

FDA has examined the impacts of thisfinal rule under Executive Order 12866and the Regulatory Flexibility Act (5U.S.C. 601–612). Executive Order 12866directs agencies to assess all costs andbenefits of available regulatoryalternatives and, when regulation isnecessary, to select regulatoryapproaches that maximize net benefits(including potential economic,environmental, public health and safety,and other advantages; distributiveimpacts; and equity). The agency

believes that this final rule is consistentwith the regulatory philosophy andprinciples identified in the ExecutiveOrder. In addition, the final rule is nota significant regulatory action as definedby the Executive Order and so is notsubject to review under the ExecutiveOrder.

Under the Regulatory Flexibility Act,if a rule has a significant impact on asubstantial number of small entities, anagency must analyze regulatory optionsthat would minimize any significantimpact of a rule on small entities.Because this final rule has no effect onthe OTC marketing of ipecac syrup drugproducts, it will not impose a significanteconomic burden on affected entities.Therefore, under the RegulatoryFlexibility Act (5 U.S.C. 605(b)), theCommissioner of Food and Drugscertifies that the final rule will not havea significant economic impact on asubstantial number of small entities. Nofurther analysis is required.

V. Environmental Impact

The agency has determined under 21CFR 25.24(c)(6) that this action is of atype that does not individually orcumulatively have a significant effect onthe human environment. Therefore,neither an environmental assessmentnor an environmental impact statementis required.


Drugs, Labeling, Alcohol.Therefore, under the Federal Food,

Drug, and Cosmetic Act and underauthority delegated to the Commissionerof Food and Drugs, 21 CFR part 328 isamended as follows:

PART 328—OVER-THE-COUNTERDRUG PRODUCTS INTENDED FORORAL INGESTION THAT CONTAINALCOHOL


Authority: Secs. 201, 301, 501, 502, 503,505, 701 of the Federal Food, Drug, andCosmetic Act (21 U.S.C. 321, 331, 351, 352,353, 355, 371).

2. Section 328.10 is amended byredesignating paragraph (f) as paragraph(g) and by adding new paragraph (f) toread as follows:

§ 328.10 Alcohol.

* * * * *(f) Ipecac syrup is exempt from the

provisions of paragraph (d) of thissection.* * * * *

Dated: November 5, 1996.William K. Hubbard,Associate Commissioner for PolicyCoordination.[FR Doc. 96–29387 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F

21 CFR Part 510

New Animal Drugs; Change of SponsorAddress


SUMMARY: The Food and DrugAdministration (FDA) is amending theanimal drug regulations to reflect achange of sponsor address for Alstoe,Ltd., Animal Health.EFFECTIVE DATE: November 18, 1996.FOR FURTHER INFORMATION CONTACT:Thomas J. McKay, Center for VeterinaryMedicine (HFV–102), Food and DrugAdministration, 7500 Standish Pl.,Rockville, MD 20855, 301–827–0213.SUPPLEMENTARY INFORMATION: Alstoe,Ltd., Animal Health, 19 Foxhill,Whissendine, Oakham, Rutland, U.K.has informed FDA that it has changedits address to Granary Chambers, 37–39Burton St., Melton Mowbray,Leicestershire LE13 1AF, England.Accordingly, the agency is amendingthe regulations in 21 CFR 510.600(c)(1)and (c)(2) to reflect the new address.

List of Subjects in 21 CFR Part 510Administrative practice and

procedure, Animal drugs, Labeling,Reporting and recordkeepingrequirements.

Therefore, under the Federal Food,Drug, and Cosmetic Act and underauthority delegated to the Commissionerof Food and Drugs and redelegated tothe Center for Veterinary Medicine, 21CFR part 510 is amended as follows:

PART 510—NEW ANIMAL DRUGS


Authority: Secs. 201, 301, 501, 502, 503,512, 701, 721 of the Federal Food, Drug, andCosmetic Act (21 U.S.C. 321, 331, 351, 352,353, 360b, 371, 379e).

§ 510.600 [Amended]2. Section 510.600 Names, addresses,

and drug labeler codes of sponsors ofapproved applications is amended inthe table in paragraph (c)(1) in the entryfor ‘‘Alstoe, Ltd., Animal Health’’ and inthe table in paragraph (c)(2) in the entryfor ‘‘062408’’ by removing ‘‘19 Foxhill,Whissendine, Oakham, Rutland, U.K.’’


and by adding in its place ‘‘GranaryChambers, 37–39 Burton St., MeltonMowbray, Leicestershire LE13 1AF,England’’.

Dated: October 29, 1996.Andrew J. Beaulieau,Deputy Director, Office of New Animal DrugEvaluation, Center for Veterinary Medicine.[FR Doc. 96–29388 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F

21 CFR Parts 510 and 558

Animal Drugs, Feeds, and RelatedProducts; Tylosin


SUMMARY: The Food and DrugAdministration (FDA) is amending theanimal drug regulations to remove thatportion reflecting approval of a newanimal drug application (NADA) heldby Countrymark Cooperative, Inc.(formerly Indiana Farm BureauCooperative Association, Inc.). TheNADA provides for use of a tylosinType A medicated article for making atylosin Type C medicated swine feed. Ina notice published elsewhere in thisissue of the Federal Register, FDA iswithdrawing approval of the NADA.EFFECTIVE DATE: November 29, 1996.FOR FURTHER INFORMATION CONTACT:Mohammad I. Sharar, Center forVeterinary Medicine (HFV–216), Foodand Drug Administration, 7500 StandishPl., Rockville, MD 20855, 301–594–1722.SUPPLEMENTARY INFORMATION: In a noticepublished elsewhere in this issue of theFederal Register, FDA is withdrawingapproval of NADA 125–226 held byCountrymark Cooperative, Inc., 950North Meridian St., Indianapolis, IN46204–3909 (formerly Indiana FarmBureau Cooperative Association, Inc.,120 East Market St., Indianapolis, IN46204). The NADA provides for use oftylosin Type A medicated articles tomake tylosin Type C medicated swinefeeds. Countrymark Cooperative, Inc.,voluntarily requested withdrawal ofapproval of the NADA because it nolonger makes Type A medicated articlesfor use in medicated feeds. Thisdocument removes the entry in 21 CFR558.625(b) to reflect the withdrawal ofapproval of this NADA.

This NADA was originally held byIndiana Farm Bureau CooperativeAssociation, Inc. The regulations hadnot been amended in § 510.600(c) (21CFR 510.600(c)) to reflect the sponsorchange to Countrymark Cooperative. At

this time, Indiana Farm BureauCooperative Association is no longer thesponsor of any approved NADA’s.Therefore, § 510.600(c) is amended toremove the entries for the firm.

List of Subjects

21 CFR Part 510

Administrative practice andprocedure, Animal drugs, Labeling,Reporting and recordkeepingrequirements.

21 CFR Part 558

Animal drugs, Animal feeds.Therefore, under the Federal Food,

Drug, and Cosmetic Act and underauthority delegated to the Commissionerof Food and Drugs and redelegated tothe Center for Veterinary Medicine, 21CFR parts 510 and 558 are amended asfollows:

PART 510—NEW ANIMAL DRUGS


Authority: Secs. 201, 301, 501, 502, 503,512, 701, 721 of the Federal Food, Drug, andCosmetic Act (21 U.S.C. 321, 331, 351, 352,353, 360b, 371, 379e).

§ 510.600 [Amended]

2. Section 510.600 Names, addresses,and drug labeler codes of sponsors ofapproved applications is amended inparagraph (c)(1) by removing the entryfor ‘‘Indiana Farm Bureau CooperativeAssociation, Inc.,’’ and in paragraph(c)(2) by removing the entry for‘‘021502.’’

PART 558—NEW ANIMAL DRUGS FORUSE IN ANIMAL FEEDS


Authority: Secs. 512, 701 of the FederalFood, Drug, and Cosmetic Act (21 U.S.C.360b, 371).

§ 558.625 [Amended]

4. Section 558.625 Tylosin isamended by removing and reservingparagraph (b)(76).

Dated: October 18, 1996.Stephen F. Sundlof,Director, Center for Veterinary Medicine.[FR Doc. 96–29389 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F

Health Care Financing Administration

42 CFR Part 413

[BPD–805–CN]

RIN 0938–AG68

Medicare and Medicaid Programs; NewPayment Methodology for RoutineExtended Care Services Provided in aSwing-Bed Hospital; Correction

AGENCY: Health Care FinancingAdministration (HCFA), HHS.ACTION: Correction notice.

SUMMARY: This document corrects thefinal rule published October 3, 1996 (61FR 51611) that revised the methodologyfor payment of routine extended careservices furnished in a swing-bedhospital. The final rule also revised theregulations concerning the method usedto allocate hospital general routineinpatient service costs for purposes ofdetermining payments to swing-bedhospitals.EFFECTIVE DATE: These corrections areeffective as of November 4, 1996.FOR FURTHER INFORMATION CONTACT: JohnDavis, (410) 786–0008.SUPPLEMENTARY INFORMATION: We aremaking the following corrections to theOctober 3, 1996 final rule (61 FR 51611):

1. On page 51612, in the first column,fourth line from the bottom, theduplicate word ‘‘harmless’’ is deleted.

2. On page 51612, in the thirdcolumn, lines 16 and 17, the phrase‘‘ending on or after June 30, 1989 andthrough May 31, 1990’’ is corrected toread ‘‘ending on or after June 30, 1989through May 31, 1990’’.

3. On page 51615, in the thirdcolumn, lines 30 and 31, the phrase ‘‘weare changing to the out method’’ iscorrected to read ‘‘we are changing tothe carve-out method’’.

4. On page 51616, in the first column,under Subpart D, item number 2, theamendatory language is corrected byadding the phrase ‘‘the introductory textof paragraph (a)(1)(ii);’’ after the phrase‘‘Section 413.53 is amended byrevising’’.(Catalog of Federal Domestic AssistanceProgram No. 93.773 Medicare—HospitalInsurance Program; No. 93.778, MedicalAssistance Program)

Dated: November 7, 1996.Neil J. Stillman,Deputy Assistant Secretary for InformationResources Management.[FR Doc. 96–29398 Filed 11–15–96; 8:45 am]BILLING CODE 4120–01–P


Administration for Children andFamilies

45 CFR Parts 1355, 1356, and 1357

RIN 0970–AB34

Foster Care Maintenance Payments,Adoption Assistance, Child and FamilyServices

AGENCY: Administration on Children,Youth and Families (ACYF),Administration for Children andFamilies (ACF), HHS.ACTION: Final rule.

SUMMARY: This final rule amendsexisting regulations concerningcomprehensive child and familyservices under titles IV–B (ChildWelfare Services) and IV–E (FederalPayments for Foster Care and AdoptionAssistance) of the Social Security Act.The rule, prepared in response to theenactment of the Family Preservationand Support Services Act in 1993,provides direction to the States andeligible Indian Tribes in accomplishingtwo goals: establishing comprehensivecommunity-based family supportprograms and short-term crisis-intervention family preservationprograms, and working across the childand family services system to design acontinuum of services responsive to thediverse needs of families and children.EFFECTIVE DATE: December 18, 1996.This rule contains informationcollection requirements in Sections1357.15 and 1357.16 which are subjectto review and approval by OMB. Theinformation collection requirements inthese sections will not become effectiveuntil they are approved by OMB andassigned a valid OMB control number.A document will be published in theFederal Register which contains thevalid OMB control number for theserequirements.

FOR FURTHER INFORMATION CONTACT:

(1) Carol W. Williams, AssociateCommissioner, Children’s Bureau,Administration on Children, Youthand Families

Or(2) Daniel H. Lewis, Deputy Associate

Commissioner, Children’s Bureau,Administration on Children, Youthand Families, Telephone (202) 205–8622 or (202) 205–8618


Table of ContentsPreambleI. BackgroundII. Summary of Major Changes in the Final

Rule and Discussion of Major Issues

III. Section by Section Discussion ofComments

IV. Impact AnalysisFinal Rule

I. BackgroundTitle IV–B was added to the Social

Security Act in 1935 to provide Federalformula grants to States to establish,extend and strengthen child welfareservices. Major changes to theauthorizing legislation were later madeunder the Adoption Assistance andChild Welfare Act of 1980 (Pub. L. 96–272), to prevent the unnecessaryseparation of children from theirfamilies; improve the quality of care andservices to children and their families;and, ensure permanency for childrenthrough reunification with parents,through adoption, or through anotherpermanent living arrangement.

Over the last 15 years, however,social, cultural, and economic changeshave frustrated efforts to meet thesegoals. Increased numbers of familiescoming to the attention of child welfareagencies with problems of ever-increasing severity coupled with risingrates of child abuse and neglect reports,have resulted in an overwhelmed childwelfare system. Unable to keep up withthese increased demands, constrainedby resource limitations andoverburdened workers, service planninghas largely been limited to activities thatfocus on crisis intervention and notprevention and treatment.

Acknowledging that the system wasnot working for some of our mostvulnerable children and their families,Congress amended title IV–B in August,1993, under the Omnibus BudgetReconciliation Act of 1993, Public Law103–66. A new program, entitled familypreservation and family supportservices, added as title IV–B, subpart 2,provides States and eligible IndianTribes with new Federal funding forpreventive services (family supportservices) and services to families at riskor in crisis (family preservationservices).

This legislation set aside funds forplanning in fiscal year 1994 as the basisfor the development of a five-yearcomprehensive services plan. Thisplanning effort also provided States andlocal communities and eligible IndianTribes the opportunity to review theircurrent strategies for meeting the serviceneeds of children and their families,identify service gaps and barriers tocoordination of services, and develop aplan for providing a continuum ofservices to families and their children.

The FY 1994 appropriation for thisnew program (subpart 2) was $60million. Of this amount, $2 million was

reserved for Federal evaluation,research, and training and technicalassistance; $600,000 was reserved forgrants to Indian Tribes. The balance wasavailable for grants to States to fundplanning and services for family supportand family preservation.

For FY 1995, the authorizationincreased to $150 million. Of thisamount, $6 million was reserved forFederal evaluation, research, andtraining and technical assistance and$1.5 million for grants to Indian Tribes.A new program of grants to State courtswas initiated at a funding level of $35million for FYs 1995–1998. The balanceis available for grants to States forfamily preservation and family supportservices.

Shortly after the legislation wasenacted, ACF convened a series of focusgroups to learn about familypreservation and family supportservices. Using information obtainedfrom these discussions and building onexisting literature, four goals for familysupport and family preservationservices were identified:

• The safety of all family membersmust be assured.

• These programs should serve toenhance parents’ ability to create safe,stable, and nurturing homeenvironments that promote healthychild development.

• To assist children and families toresolve crises, connect with necessaryand appropriate services, and remainsafely together in their homes wheneverpossible.

• To avoid the unnecessary out-of-home placements of children, and helpchildren already in out-of-home care tobe returned to, and be maintained with,their families or in another planned,permanent family.

Based on these goals and otherlessons learned through the focusgroups, we issued a notice of proposedrulemaking on October 4, 1994 (59 FR50646) to implement the new familypreservation and family supportprovisions of the statute and integratethis new focus into a comprehensivecontinuum of child and family services.

The statute specified that five-yearplans were due June 30, 1995 from allStates and eligible Indian Tribes inorder to receive Federal funding. Overthe past two years, ACF has committedsubstantial resources to the provision oftechnical assistance to States and Tribesto assist in the development of theseplans and the implementation of theseprovisions. Regional and nationalconferences, State and locality-specificinterventions, our Regional Offices andResource Centers all have assisted Statesand Indian Tribes during this period.


II. Summary of Major Changes in theFinal Rule and Discussion of MajorIssues

We received 80 letters of publiccomment regarding the Notice ofProposed Rulemaking (NPRM) fromFederal, State and local agencies andgovernments; national, State, and localchild and family service and advocacyorganizations; and other interestedparties. Over 150 of the specificcomments within these letters were intotal support of portions of, or theentirety of, the proposed rule.

The vast majority of commenters wereextremely supportive of the NPRM andthe focus group process employed in itsdevelopment. The input from families,practitioners, researchers, and advocatesis reflected in this rule and affirms theimportance of collaboration andcooperation. The Administration forChildren and Families is committed tousing this inclusive process as a modelapproach in implementing futurestatutory changes of this nature.

Commenters noted that the tone of theNPRM captured the intent and spirit ofthe legislation. In particular, they citedsupport for the joint planning andconsultation process and the importanceof the flexibility provided whichallowed States and Indian Tribes toprepare their plans to meet the needs oflocal communities. Strong support wasvoiced for the vision to achieveimproved outcomes for children andfamilies by helping States, IndianTribes, and communities apply theprinciples of family support and familypreservation across all child and familyservice programs.

Many commenters voiced support forthe NPRM’s emphasis on positive,supportive, and cooperativerelationships between at-risk familiesand service providers and building onfamily strengths. They spoke to theimportance of this rule in helping Statesexpand the frontiers of child abusetreatment and prevention andstrengthen the goals of familypreservation and family support.

This final rule reflects theDepartment’s honoring State and Tribaldiscretion in many areas of programadministration. Through our experiencein administering title IV–B and throughour consultation with experts in thefield, we have learned that flexibility inapproach, along with strong outcomestandards, is key to designing successfulprograms at the State and Tribal levels.

With this rule, we lay a framework bysetting certain basic principles,standards, and processes while at thesame time allowing for State and Tribalflexibility in accomplishing these goals.

Many commenters requested modelChild and Family Services Plans(CFSPs), model goals and objectives, ora more extensive list of requiredstakeholders to the process. Despitethese request for greater specificity anddetail in various provisions of the rule,we remain committed to offering Statesand Tribes maximum flexibility indesigning the content of their Child andFamily Services Plans.

We have relaxed requirements wherewe have been too prescriptive. Forexample, we have relaxed therequirements of § 1357.15(1)(3)(viii)Consultation to allow for States andTribes to determine the best set ofspecific stakeholders to participate inthe design of their Child and FamilyServices Plans, offering an extensivesuggested list. This section as a wholestill requires a critical list of essentialconsultation partners to the decision-making process.

Technical revisions were madethroughout the rule to: (1) Change thereference of section 427 to 422(b)(9) inaccordance with Pub. L. 103–432; (2)reflect changes made in the Child AbusePrevention and Treatment Act (CAPTA)as amended by the Child AbusePrevention and Treatment ActAmendments of 1996, Pub. L. 104–235,which was signed into law on October3, 1996: The CAPTA changes reflect thatthere is only one program, the ChildAbuse and Neglect State Grant program,instead of two programs, and citationsto specific sections have been corrected;and (3) change the title IV–A and IV–Freferences in the rule to reflect thepassage of the Personal Responsibilityand Work Opportunity ReconciliationAct of 1996 (Pub.L. 104–193).

We have maximized flexibility in thefiscal area to facilitate the provision offamily support services by encouragingthe involvement of community-basedorganizations. The matchingrequirements for title IV–B programshave now been revised to allow Statesand Indian Tribes to meet the non-Federal program cost matchingrequirements using cash or in-kindcontributions, including those that aredonated. We made this change(consistent with existing regulationsgoverning grants at 45 CFR 92.24) inresponse to compelling arguments infavor of this policy put forth by nearly30 commenters. We feel strongly, andcommenters agree, that this change wasimperative to supporting broaderopportunities for partnership withcommunity-based organizations andcritical to full implementation of thegoals of family preservation and familysupport programs.

The prohibition of all in-kindcontributions was perceived as a realbarrier to the active involvement ofcommunities. Non-Federal share maynow include real estate and realproperty, volunteer time (at standardrates), and limited professional time forservice delivery (at standard rates).

There was, however, dissent from thisoverall support of in-kind matching.There was concern that, from a budgetand internal control perspective, the useof an in-kind match may lead todisallowances resulting frommismanagement. The administrativeoversight, monitoring, and validation ofdocumentation is resource intensive.Some commenters suggested that adetermination on the allowability of in-kind contributions should be made onan individual State/Tribe basis to allowin-kind contributions only where fundsare not otherwise available. It wasargued that this safeguard would ensurethat in-kind contributions are not usedto shift resources away from children’sservices (in cases where financialrevenues available to meet the matchingrequirements are not a problem). As aresult of this concern, one that we share,we have added a component to the JointPlanning definition (§ 1357.10 (c)) toprovide for Federal/State or Federal/Tribal consultation around fiscal issuessuch as matching.

A. ConsolidationWith this rule, we require

consolidating the planning andreporting requirements for title IV–Bprograms with information includedfrom the Independent Living Program(ILP) and the Child Abuse Preventionand Treatment Act (CAPTA) program.Consolidation of plan requirements isimperative to the development overtime of a comprehensive child andfamily service system which isaccessible, coordinated, flexible, builton and linked to community servicesand supports, and able to serve childrenand their families in a more effectiveand responsive way.

The two title IV–B programs are beingconsolidated for several reasons: Childwelfare services and family preservationand family support services are both apart of the child and family servicescontinuum; both services areadministered by the same agency andaddress common problems of the samepopulation of children and families;input from the field, supported bycommenters on the proposed rule, urgedus to consolidate the plans, applicationrequirements, and program reporting,where possible, and to reduceduplicative administrative burdens onStates and Tribes.


Consolidation of the plan does notaffect title IV–B, subpart 1 or ILPfunding. In fact the practicalconsequence of submitting one plan isthat in addition to paperwork reduction,the plan will be submitted three monthsprior to the start of the next fiscal yearmeaning that title IV–B, subpart 1 andILP funds would be received earlier.

Information included from the ILPand the CAPTA program will facilitateongoing coordination, consultation, andjoint planning efforts among theseprograms and assist States to movetoward a more comprehensive servicedelivery system. States and IndianTribes are encouraged to includeadditional child and family servicesprograms in the CFSP, at their option,to increase program integration.

We believe that comprehensive childand family services cannot be developedwithout considering information onservices under CAPTA and the ILP.States still have the option of submittingthe application for ILP with the CFSP orseparately. If the State elects to submitthe ILP application separately,information about the ILP must becontained in the CFSP.

Major changes have been made toCAPTA since the NPRM was published.There is now a requirement for a 5 yearCAPTA State Plan to be coordinated, tothe extent practicable, with the CFSP.Currently, we are reviewing the newrequirements for CAPTA in an effort toconsolidate these State Plans. The CFSPmust contain information on the CAPTAprogram, however, we will work toensure that there are not duplicateinformation requirements for these twoPlans.

Opinions regarding consolidationwere decidedly mixed. There was asignificant positive reaction toconsolidation and calls for an even moreinclusive plan incorporating all services(health, mental health, education, etc.)under the jurisdiction of Federal andState agencies.

Whereas we heard strong support forconsolidating the title IV–B, subparts 1and 2 plans, suggestions were advancedthat the process for inclusion of subpart1 not be total consolidation, butindependent development andinclusion of information. Difficultieswere identified in producing anexpanded plan with funds for only oneportion of that plan. The fear was thatthis expansion would underminequality in the planning process andservice system development.

Alternative proposals involvedsuggestions under which the familypreservation and family supportservices five-year plan and the subpart1 plan can be considered as separate

elements of the overall CFSP andseparately approvable on their ownmerits. However, a vast majority ofcommenters supported consolidationand we have decided to retain theconsolidated plan requirement andsuggest that our phase-in option(described below) and joint planningwith the ACF Regional Offices shouldallow for any approval concerns a Stateor Indian Tribe may have to be resolved.

Some felt our position onconsolidation was expansive and wentbeyond the statute by including CAPTAinformation. Some commenters did notbelieve information on ILP and CAPTAprograms should be included in theCFSP since separate plans orapplications will continue to benecessary.

Other commenters stated that while itseems useful to include informationfrom the various programs in the planit is not clear what future directions thiswould take since the populations servedmay be different. The commenterssuggested that the final rule encouragemaximum integration and coordinationwhen those efforts enhance achievementof program goals.

Additionally, it is our view that thepopulations served by CAPTA and titleIV–B and IV–E are indeed the same.While CAPTA provides preventive andprotective services to children at risk ofabuse or neglect, it is child welfareservices which are provided for the careof children abused or neglected.

States will face challenges inimplementing the new vision. Theavailability of technical assistance andthe maintenance of flexibility will bevital to successful implementation. Webelieve that the rule is in keeping withstatutory intent and will provide Statesand Indian Tribes with an effectivestrategy for providing a continuum ofservices to children and their families.

B. Phase-In

Closely related to the process anddegree of consolidation is the issue ofthe timeframe within which acomprehensive plan must be developed.We have relaxed the requirements forplan consolidation to allow for a phase-in approach to the requirement. Statesand Indian Tribes will now have anextra two years (until June 30, 1997) tocomplete the consolidated planningrequirements. Consolidation is complexand time-consuming. We want tosupport State and Tribalimplementation to ensure that it is donethoughtfully and gradually, allowingtime to work through the complicationsthat are sure to arise and produce aquality working process.

We believe this strategy does notcompromise either the intent or thespirit of the statute and the NPRM sinceit has always been our position that theprocess of planning, coordination,consultation, and goals and objectivessetting is an on-going process whichreaches beyond initial development ofthe plan. This added flexibility, coupledwith the technical assistance which hasbeen made available since issuance ofthe proposed rule, should eliminate anyroadblock to full and successfulimplementation.

A number of factors were consideredthat led to this decision to phase inconsolidation. There was a great deal ofconcern expressed by commenters aboutthe expansive nature of the Child andFamily Services Plan and State andIndian Tribe capacity to meet all therequirements by the June 30, 1995submission date. Concerns centeredaround the timeframe forimplementation as unrealisticallyambitious. These commentersrecommended that additional time beprovided, especially to incorporatecomponents of the child welfare servicesystem into an integrated planningprocess. However, we want to clarifythat a consolidated CFSP does notnecessarily allow for pooled fundingamong the programs mentioned,inasmuch as separate funding streamsand accountability are still required bystatute.

With respect to any State or eligibleIndian Tribe that elects the phase-inoption, the plan submitted in June 1995should have included informationdescribing how the State or Indian Tribeis engaged in and will continue to beengaged in comprehensive planning anddevelopment of the consolidated planencompassing the continuum of childand family services.

States and Indian Tribes choosing thisoption will be required to submit aconsolidated plan with the submissionof their second annual progress andservices report on June 30, 1997. Statesand Indian Tribes have already madesignificant strides toward meeting theserequirements.

C. Continuum/LinkagesThe most effective means of serving

children and families is to have adelivery continuum which directlyprovides and links with a wide varietyof supports and services.

Throughout the rule we makereferences to this continuum and otherrelated service systems. Respondents tothe proposed rule expressed confusionabout this terminology. We would liketo clarify that, as used in this rule, thechild and family services continuum


refers to the publicly-funded State childand family services continuum;including family support and familypreservation services; child welfareservices, including child abuse andneglect prevention, intervention, andtreatment services; and services tosupport reunification, adoption, kinshipcare, foster care, independent living, orother permanent living arrangements.

This continuum is inclusive of allservices provided under titles IV–B, IV–E, and CAPTA and is linked to otherservice support systems (e.g. health,mental health, education, etc.) to allowchildren and families to access servicesthey need when they need them and astheir needs change. Our primary focusin this rule is to support and build thecapacity of the child and family servicescontinuum. We do encourage, however,strong linkage with other systems thataffect and serve the same population.

There was some preference for the useof the term ‘‘system of care’’ instead of‘‘continuum’’ in the definition of Childand Family Service Plan (CFSP). Thesecommenters also called for a definitionof child and family services continuum,or the child and family services systemof care, which incorporates theprinciples in § 1355.25. They asked thatthe definition make clear that the termdoes not refer to a prescribed sequenceof services but rather an array ofservices or a system of care that ensuresthat families and children will haveaccess to services and support as theirneeds change.

‘‘Continuum’’ is not used in thesequential sense or to imply thatchildren and families must otherwiseprogress from one step to the next.Families may enter and exit at any pointin the continuum. We have not addeda separate definition of the continuumin the regulatory language because webelieve that the parenthetical listincluded within the definition of theChild and Family Services Plansufficiently defines the range of servicesincluded.

Some commenters expressedconfusion by stating that the rules wereweakened by expecting the State childwelfare agency to be responsible forother sectors and federally supportedState agencies, questioning what thelinkages to other agencies should entail.One commenter was concerned that thedescription of the service continuumleaves out critical health, economic andeducational services.

The requirement for coordination ofthe provision of services with otherFederal and federally assisted programsserving children and families is derivedfrom statute. This rule does not add anynew responsibility for these other

programs to the child welfare agencybut rather, in an effort to improve thewell-being of children, youth andfamilies, we encourage programcoordination among related programs toprovide a holistic approach to services.

However, we recognize that the issueof coordination among various programspoints to the need for similarregulations and policies in other Federalprograms and agencies and we havebeen working to develop relationshipsacross programs for effective servicelinkages.

More specificity was requested withregard to how States and Tribes areexpected to nurture linkages. The term‘‘linkages’’ as used throughout the rulemeans some method of joining orcoordinating two otherwise separateentities or sets of services. We have notprovided specific linkage criteria inorder to allow States and Tribesmaximum flexibility to meet theirunique needs for planning anddesigning services.

D. SafetyFamily preservation services were

viewed by some as potentiallyjeopardizing the safety of children andit was suggested that the preamblestatements, ‘‘If a child cannot beprotected from harm without placement,family preservation services are notappropriate’’ and ‘‘Family preservationdoes not mean that the family must staytogether or be preserved under allcircumstances’’ be included in theregulatory language itself. Thisrecommendation was seen as helping toput to rest the often-raised ‘‘childprotection versus family preservation’’argument and dispelling the myth thatthis new funding availability is apowerful financial incentive for childwelfare workers and agencies topreserve the family unit at the expenseof child safety.

We maintain that family preservationservices are only appropriate in certaincircumstances. It is true that some of thechildren who come into State carecannot be left safely in their homes.Whether in the child’s home or insubstitute care, a child’s safety shouldnever be compromised. A familypreservation program is only one of anumber of strategies to address the issueof safety for children.

An underlying tenet of child andfamily services is the protection andsecurity of children as expressed in theprinciples under 45 CFR 1355.25(a).Because a number of commentsaddressed this issue, we revised thedefinition of family preservation at§ 1357.10(c) to provide that familypreservation services are also designed

‘‘to protect children from harm * * *’’and to state unequivocally that safety isparamount in the principles at§ 1355.25(a).

We would argue that this newlegislation and funding is not anincentive for child welfare workers andagencies to preserve families at theexpense of child safety but rathercreates the exact opposite result. Byproviding new funds with an emphasison prevention and treatment, there is agreater likelihood that children will bebetter protected and have more serviceoptions available for protection thanpresently exist in most States andTribes.

E. Indian TribesIn FYs 1994 and 1995 41 Indian

Tribes were eligible for direct fundingunder title IV–B, subpart 2. In FY 1996,more Indian Tribes were eligible fordirect funding and were notified of theireligibility and of the applicationprocess. New Tribes which becomeeligible for this funding beginning withFY 1997 may submit either anapplication for planning funds orsubmit a five year plan. If a Tribe electsto submit an application for planningfunds, those funds will be awarded withno match requirement in the first yearof funding. We are committed toproviding full support for planningconsistent with the process used in thefirst year of funding for the originallyfunded States and Indian Tribes.

If a Tribe chooses to forego theplanning process, it may submit a fiveyear plan immediately on June 30 of theyear in which the Indian Tribe expectsto be funded. In this case, the Tribewould be subject to the matchrequirement for services funding.

We have accepted recommendationsfrom Indian Tribes and other Indianadvocacy groups to exempt the Tribesfrom certain statutory requirements.This exemption authority is based onthe Secretary’s discretion in section432(b) of the Act to exempt anyprovision in section 432 that isdetermined to be inappropriate toIndian Tribes, taking into account theresources, needs, and othercircumstances of the Indian Tribe. Inparagraph (f), the Indian Tribes areexempted from three statutoryrequirements: the ten percent limit onadministrative costs, the non-supplantation provision, and therequirement that a significant portion offunds must be used for both familypreservation and family supportservices.

We received many commentsregarding the Indian Child Welfare Actof 1978 (ICWA). It is our responsibility


to ensure that all State plans complyfully with the statutory mandates ofICWA, particularly the requirements forTribal notification and the order ofpreferences for out-of-home placementsinvolving ICWA eligible children andpermanency planning. We issued aProgram Instruction (ACYF–PI–CB–95–12 released August 11, 1995) thatspecifies reporting requirements andprocedures related to the statutoryrequirement that States report onmeasures they have taken to complywith the Indian Child Welfare Act.Additionally we plan to addresscompliance issues, including ICWA, ina separate rule on the subject of childand family services monitoring.

We received requests for funding forTribal consortia serving two or moreTribes and requests that the term‘‘federally recognized Tribes’’ ratherthan ‘‘Indian Tribal Organizations’’ beused. We are bound by statute and haveno authority to fund consortia undersubpart 2. The language ‘‘Indian TribalOrganization’’ is also taken directlyfrom the statute.

F. Disabilities

We received many commentsexpressing concern that the proposedrule did not speak expressly to theneeds of parents and children withdevelopmental disabilities and that thefinal rule include, throughout, specificmention of programs, services andsupport for preservation of familiesaffected by disabilities. Related to this,another commenter questioned how therule treats the provision of mentalhealth services and services to childrenwith developmental disabilities and therole of child welfare agencies in thisregard.

We are aware of the special needs offamilies in which a child or other familymember has a disability or has otherspecial needs such as for mental healthservices. We believe that servicesshould be designed and made availableto all families, including families withdisabilities, but we did not specificallyidentify any populations in order toavoid excluding any particular groupsor individuals. We deliberately soughtto provide enough flexibility for Statesand eligible Indian Tribes to designprograms that would be responsive tothe unique needs of the children andfamilies in a particular State. We wouldunderline the fact that the Americanswith Disabilities Act requiresaccessibility to services by the disabled;this accessibility should accommodateboth physical and emotional needs ofthe disabled.

III. Section-by-Section Discussion ofComments

The Department would like to expressits gratitude to the many concernedindividuals and organizations whichtook the time to prepare thoughtful andinvaluable comments to our NPRM. Thecomments were very substantive andmeaningful and we considered themseriously in preparing this final rule.

1. Part 1355—General

Section 1355.10 Scope

This section contains generalrequirements applicable to both title IV–B and title IV–E of the Social SecurityAct and is applicable to Indian Tribes,as well as States, unless otherwisespecified.

Comment: Several commentersrequested that the scope of the rules berevised to include a funding set-asidefor Alaskan Native Organizations andNative Hawaiian Organizations.

Response: The statute defines theeligible grantees individually undertitles IV–B and IV–E. While we aresympathetic to the concerns expressed,we have no statutory authority torequire such a set-aside.

Section 1355.20 Definitions

This section provides generaldefinitions taken from statute of theFederal entities responsible foradministration of child welfareprograms, and of eligible grantees.

Comment: Some commenters wereconcerned that the definition of ‘‘Stateagency’’ required that the titles IV–Band XX agency be the same.

Response: The definition of Stateagency derives from statute and we haveno authority to change or waive thisdefinition in this final rule. However, asindicated in the definition, there issome flexibility provided based on aState’s pre-December 1, 1974organizational structure. From aprogrammatic standpoint, we also notethat in many States, title XX funds areused in support of child and familyservices.

Section 1355.21 State PlanRequirements for Titles IV–B and IV–E

This section is written to conform tothe new requirements and clarify thatthe five-year CFSP and the AnnualProgress and Services Reports, alongwith the title IV–E State Plan, must bemade available for public review andinspection.

No comments were received on thissection and therefore no changes arebeing made to the language proposed inthe NPRM.

Section 1355.25 Principles of Childand Family Services

These principles, most oftenidentified by practitioners and others ashelping to ensure effective services,emphasize the paramount importance ofthe safety of all members of the family,including victims of child abuse andneglect and victims of domesticviolence and their dependents. Theservice principles address the need forpermanency for all children; theimportance of accessibility, flexibility,and coordination; and culturalcompetence.

In addition, the principles provideguidance in bringing about changes inState, local, and Indian Tribal child andfamily service delivery. In response tocomments on the proposed rule,accountability to clients and thecommunity has been added.

As stated in the proposed rule, wereiterate that ‘‘family preservation’’ doesNOT mean that the family must staytogether or ‘‘be preserved’’ under allcircumstances, or at the expense of thesafety and well-being of the child.

Comment: One commenter asked thatwe continue to distinguish between theprinciples of child and family servicesas guidelines and the required CFSPvision, goals and objectives. Thecommenter believed that States shouldview these principles as an importantcommunication tool to educate thepublic about the child and familyservices plan vision, goals andobjectives and suggested that this beencouraged in the rule.

Several commenters suggested thatthe principles be cross-referencedthroughout the rule and that States berequired to articulate in their visionstatement, the relationship between theprinciples and the goals and objectivesand each year to specify in their annualprogress and services reports the gainsbeing made to bring the system intoaccord with the principles.

Response: We have retained theprinciples as guidelines (notrequirements) but have revised§ 1357.15(g), to provide that the visionstatement should reflect the child andfamily service principles.

Comment: Some commentersrecommended that the introductoryparagraph to this section state explicitlythat the principles apply not just tofamily support and family preservationbut to the entire range of child andfamily services, including reunification,adoption, and kinship care.

Response: We believe that both thetitle of this section and the introductoryparagraph clarify that the principlesapply to all child and family services. In


response to these comments, we havemade a technical revision to theintroductory language in § 1355.25 toprovide that the principles provideguidance allowing for improvements inthe continuum of services.

Comment: One commenter thoughtthe principles should note that theactive involvement of differentminorities and linguistically diversegroups in the planning and ongoingoperation of services is an integral partof a community-based service system.This commenter suggested that States berequired to specify how the principle ofcultural and linguistic competence willbe reflected in the vision and goals aswell as in other areas. This commenterrecommended that annual reportsshould specify the progress made inbringing the system more into accordwith the cultural competence principle.

Response: We agree with theimportance of actively involvingminorities and linguistically diversegroups. We have adjusted the languageat § 1357.15(l) Consultation, paragraph(3)(iv) to reflect that importance becauseit is in this section that the States andTribes must commit to the inclusion ofa broad range of stakeholders in theirdecision-making processes. States andTribes may review annually their plan’sconsistency with the culturalcompetence principle as this would bean appropriate check for activeinvolvement. However, this level ofdetail would not be necessary forreporting to ACF.

Comment: Two commenters askedthat the NPRM be revised to make clearthat domestic violence prevention isintegral to a system of care for childrenand families. Alternatively, anothercommenter suggested that § 1355.25(a)be revised to recognize that some risk-taking with children and families isnecessary by providing ‘‘* * * whensafety can reasonably be assured andrisk of harm minimized.’’

Response: We believe the rule is clearthat domestic violence prevention,identification, and intervention is ofprime importance to child and familysafety. The importance of these issues isindicated by their inclusion in the veryfirst principle of assuring the safety andwell-being of children and all familymembers. In fact, we have strengthenedthis principle to emphasize that oneimportant way to keep children safe isto stop violence in the family includingviolence against their mothers. Withrespect to the second comment, whilerisk assessment is critical, we believethat a discussion of risk-taking wouldundermine our emphasis on workingwith the strengths of a family.

Comment: Some commenters wereconcerned that the language inparagraph (d) relevant to service focus isoverly inclusive and confusing. Theydid not believe that family preservationand family support funds should bespent on services that are otherwiseavailable. Another commenter suggestedthat this section might better state thatservices may be crisis-oriented, short-term interventions, or longer termservices necessary to meet the needs ofthe family and the individual who maybe placed in out-of-home care. Othercommenters suggested that it would bemore appropriate if the language spoketo the needs of the child and family,rather than the needs of the family andbest interests of the child.

Response: We agree, in part, and haverevised the language of paragraph (d) toprovide that services may focus onprevention, protection or other short orlong term interventions to meet theneeds of the family and the bestinterests and needs of the individual(s)who may be placed in out-of-home care.We believe that the principle stated inparagraph (d) is intended as a statementof holistic services to children andfamilies, whatever their needs may be.

Comment: A number of commenterssuggested that the language in paragraph(e), related to accessibility, should bestrengthened to say services are‘‘principally delivered in the home orcommunity.’’ Another commentersuggested that language be included torecognize the importance of timelyservices.

Response: We support the alternativelanguage offered and have revised thelanguage in paragraph (e) to provide thatservices are timely as well as flexible,coordinated, accessible and principallydelivered in the home or community.

Comment: Many commenters felt thatthe language in paragraph (f) wassubject to serious misinterpretation andshould be revised. These commenterswere concerned that the services listedparenthetically (e.g., housing, substanceabuse treatment, mental health, etc.)were inaccurately portrayed as outsidethe continuum of child and familyservices.

Response: We agree that the servicesand supports listed parenthetically arepart of the service systems to which thechild and family service continuummust be linked since they are allnecessary for families to be able tosupport and nurture their children, andwe have revised this paragraph toremove the parenthesis as well as thereference to ‘‘outside the system.’’

Comment: A number of commenterssuggested that the language in paragraph(g) be strengthened to provide that

services are accountable to thecommunity and to clients in meetingneeds and demonstrating successfuloutcomes. Several commenters alsoasked that we revise the language of thisparagraph to provide that ‘‘most’’services are community-based ratherthan ‘‘many.’’

Another commenter suggested thatthe reference to community-basedservices in paragraph (g) be cross-referenced to the definition ofcommunity-based services in§ 1357.10(c) to clarify that community-based means that the services areaccessible and responsive to the needsof the community and the individualsand families residing therein.

Response: We agree thataccountability is of paramountimportance to ensuring successfulservices. We have revised the languageby adding at the end, ‘‘are accountableto the community and the client’sneeds.’’ We revised the language toaffirm that most child and familyservices are community-based.However, we did not make any changesin response to the last comment becausewe believe the guiding principlesshould stand alone and be regarded asintroductory and applicable to the ruleas a whole.

Section 1355.30 Other ApplicableRegulations

This section provides an updated andcorrected list of other regulationsapplicable to titles IV–B and IV–E.

In the NPRM, we limited the § 205.10fair hearing provisions to title IV–Efoster care and adoption assistance,excluding title IV–B. This limitationwas an error, noted by severalcommenters, and § 205.10 now appliesto all programs under title IV–B and IV–E of the Act. The language of paragraph(c) has been changed to conform to theprovisions of the most recentamendments to 45 CFR Part 74.

Comment: One commenter asked thatwe add to the list, Part 35,Nondiscrimination on the Basis ofDisability.

Response: The applicable regulationfor all Departmental programs is 45 CFRpart 84—Nondiscrimination on theBasis of Handicap in Programs andActivities Receiving Federal FinancialAssistance and is listed at paragraph (g).

Comment: One commenter wasconcerned that in paragraph (k),exclusion of ILP from § 95.1, would bedetrimental to the State’s program.According to the commenter, if the Statewere forced to submit a final reportwithin the 90 day timeframe, the Statewould have to shorten its ILP programby 3 months.


Another commenter stated thatcurrently ILP and title IV–B funding issubject to the two-year claiminglimitation and restricting this to amaximum of one year following the yearin which the funds were awarded wouldpresent a significant problem in howclaims can be processed and would notallow for full use of the funds.

Response: This policy does notrepresent a change. The statute isexplicit in section 477(f)(3) of the Actthat ILP funds must be expended bySeptember 30 of the fiscal yearfollowing the fiscal year they wereawarded.

2. Part 1356—Requirements Applicableto Title IV–E

Section 1356.10 ScopeThis section introduces the

requirements applicable to theIndependent Living Program.


Section 1356.80 Independent LivingProgram

This section summarizes the statutoryprovisions applicable to this program.


3. Part 1357—Requirements Applicableto Title IV–B

Section 1357.10 Scope and DefinitionsThis section sets out key definitions

of the major programmatic areas undertitle IV–B. For example, the definition of‘‘Child Welfare Services Plan (CWSP)’’now reflects the broader, morecomprehensive scope and content of the‘‘Child and Family Services Plan(CFSP).’’ Within this definition, weinclude a definition of the child andfamily services continuum. We haveadded the term ‘‘permanency’’ to thedefinition of the Child and FamilyServices Plan in the final rule becauseit had been inadvertently omitted in theNPRM.

In response to comments, we changedthe definitions of ‘‘child welfareservices’’ and ‘‘family preservationservices’’ to provide greater emphasis onthe importance of child and familysafety. The definition of ‘‘familypreservation services’’ also wasexpanded from the statutory definitionto reflect the provision of concreteservices which can be a key part of thefamily preservation services package.We revised the definition of ‘‘familysupport services’’ to include

transportation services which provideaccess to key services.

Additionally, we felt it necessary toclarify the definition of ‘‘Joint planning’’to emphasize an ongoing partnershipprocess between ACF and an IndianTribe or State for the review andanalysis of child and family services,including analysis of the service needsof children, youth, and families;selection of unmet service needs thatwill be addressed; and development ofgoals and objectives that will result inimproved outcomes for children andfamilies and the development of a morecomprehensive, coordinated andeffective child and family servicesdelivery system.

Comment: Several commenters askedthat § 1357.10(b), Eligibility, be revisedto specify that States may charge fees(on a sliding scale basis) for services tofamilies in higher income categories topromote broader and more equitabledistribution of services. Alternatively,another commenter stated the belief thatcharging for services would be contraryto statute. This commenter urged,however, that if an income-basedstandard is adopted, care be taken tolook beyond the face of the family assetssince families may possess financialresources to which children at risk andbattered women may not have access.

Response: We have chosen to leavethis issue to State discretion. We would,however, urge any State which chose tocharge fees to be especially cognizant ofthe point made by the commenteropposed to such fees.

Comment: Several changes wererecommended in the definition of childwelfare services, for example, the word‘‘handicapped’’ be replaced with‘‘individual with disabilities;’’ the word‘‘and’’ be added after the phrase‘‘identifying family problems’’ in clause(3); and substituting the phrase, ‘‘incases where the child cannot bereturned home’’ for the phrase ‘‘in caseswhere restoration to the biologicalfamily is not possible or appropriate’’ inclause (5).

Other commenters suggested that thedefinition of child welfare servicesrecognize family violence. Anothercommenter asked that the definition ofchild welfare services be revised to read‘‘Reuniting with their families, childrenwho have been removed and may besafely returned by the provision ofservices to the child and the family.’’

Response: The NPRM used thedefinition of child welfare servicestaken from section 425 of the SocialSecurity Act which includes language asoriginally enacted in 1935. We haverevised the definition of child welfareservices in § 1357.10(c) in three ways:

To replace the reference to‘‘handicapped’’ with ‘‘individuals withdisabilities’’ in clause (1); to placegreater emphasis on child and familysafety in clauses (1) and (4); and toreflect the natural progression ofservices by reversing the order ofclauses (5) and (6). We believe the ruletaken as a whole emphasizes child andfamily safety and recognizes familyviolence, specifically in § 1355.25.

Comment: One commenter suggestedthat the definition of ‘‘Children’’ inparagraph (c) is not consistent withcurrent Federal and State statutorydefinitions of a dependent child andwas concerned that the proposeddefinition could be interpreted torequire that all title IV–B services mustbe available to persons between the agesof 18 and 21.

Response: We agree and have revisedthe definition to recognize that State lawon age of majority or State policy willdictate whether services will beprovided to those between the ages of 18and 21 years for title IV–B services.

Comment: One commenter thoughtthat the definition of ‘‘Family’’ shouldinclude actual primary caretakers forchildren, recognizing the variety offamily structures, whether or not theyare biological relatives.

Response: We believe that thedefinition provided in the proposed ruleis sufficiently broad to cover all possiblefamily arrangements and have notchanged this definition.

Comment: Several commenters askedthat we revise the definition of ‘‘Familypreservation services’’ to place moreemphasis on family case planning.Other commenters suggested that thedefinition of family preservation wastoo vague, failing to emphasize concreteservices; that dollars for respite care befairly allocated between the parents andthe foster family; and that the referenceto improving parenting skills is toolimiting, since this is the only definitionconcerned with parents’ needs, thefocus should be on enhancing parentalcaretaking capacity.

Response: This definition is based instatute. We have made only onesubstantive revision to this definitionand added a new paragraph (6) torecognize that family preservationservices include ‘‘case managementservices designed to stabilize families incrisis such as transportation, assistancewith housing and utility payments, andaccess to adequate health care.’’ Thisprovision is incorporated in several ofthe CFSPs submitted in June, 1995 andis considered to be an important meansof assisting families in crisis. The jointplanning process is expected to forestallimproper use of program funds.


We have not made any changes withrespect to respite care because webelieve that the allocation of dollarsshould be a State determination.

Comment: Also with respect to thedefinition of ‘‘family preservationservices,’’ commenters suggested that inthe interest of clarity, the order of pre-placement preventive services andreunification/adoption/independentliving services be reversed.

Response: In response to thesecomments, we have reversed the orderof paragraphs (1) and (2).

Comment: One commenter asked thatthe definition of ‘‘family supportservices’’ be revised to provide ‘‘copingwith limited resources’’ rather than‘‘family budgeting.’’

Response: The family support servicesdefinition is based in statute. We believethe existing language moreappropriately emphasizes long termsuccess with the language ‘‘familybudgeting.’’

Comment: One commenter asked thatthe definition of ‘‘Joint planning’’ berevised to state, ‘‘Joint planning is aprocess of discussion, consultation, andnegotiation between the parties, andFederal technical assistance that mustoccur for the Child and Family ServicesPlan to be approved and for thedevelopment and approval of theAnnual Progress and Service Reports.’’

Another commenter expressedagreement that Regional office staffshould be involved, but was concernedthat it would be inappropriate forregional staff to usurp the State’sdecision-making authority regardingdevelopment of the plan.

Response: In response to thesecomments, we have expanded thedefinition of joint planning to clarify thepartnership and positive aspects ofworking together. There is no questionthat the State maintains final decision-making authority regarding thedevelopment of the plan.

Section 1357.15 Comprehensive Childand Family Services Plan Requirements

Paragraphs (a) through (v) of § 1357.15contain the requirements for thedevelopment of the comprehensive five-year Child and Family Services Plan(CFSP). The paragraphs cover discretetopics such as general provisions relatedto scope, eligibility for funds, andrequired assurances; specific content ofthe CFSP, including a vision statement,goals, and objectives; requirements forthe description of services to beprovided, the populations to be served,and the geographic areas to be targeted;specific proposals for the planningprocess leading to the development ofthe CFSP; and other provisions focused

on the continuum of services,permanency planning efforts, and otherstatutory requirements.

We received both general and specificcomments on the CFSP requirements.General comments on the requirementswere addressed under section II of thepreamble. The more specific commentsare addressed in the followingparagraphs.

Comment: We received commentrequesting the guidance provided in thepreamble of the NPRM under thissection be incorporated into the rule.The commenter pointed out that theState planning groups would benefitfrom further clarity on key componentsof the Child and Family Services Plan.

Response: The preamble language isdesigned to provide further clarity to therule. A rule is intended to make clearthe requirements for implementing aprogram. We would recommend thatplanning groups utilize the preamblelanguage when they develop their CFSPand the Annual Progress and ServicesReport.

Section 1357.15(a) Scope

In response to comments, we madetwo revisions to this section. Onerevision adds a new paragraph (a)(4) toallow a phase-in approach forconsolidation of the plans for IV–B,subparts 1 and 2, including theinformation on CAPTA and the ILP.This approach will allow States andIndian Tribes sufficient time tocomplete the planning andconsolidation process.

The first sentence of this paragraphhas also been revised to acknowledgethe benefits of consolidation by addingthat the State’s CFSP is an opportunityto establish a system of coordinated,integrated, culturally relevant, familyfocused services.

Comment: One commenter asked thatwe play a larger role in analyzing anddisseminating the CFSP. Thecommenter felt that States wouldprobably be interested in knowing howthe process was working elsewhere andrecommended that we considerdeveloping a mechanism for sharinginformation with the States to facilitatea process whereby they serve as expertresources to one another.

Response: We are very sensitive toStates’ desire for nationwideinformation sharing and, toward thisend, have concentrated on establishingan information clearinghouse, exploringadditional training and technicalassistance strategies as well as sharingState experiences at various nationalconferences and from nationalevaluations.

Section 1357.15(b) Eligibility forFunds

This section specifies the eligibilityrequirements for receipt of funds undertitle IV–B, subparts 1 and 2. Severalchanges were made to this section.Three new paragraphs have been added,and language was added to paragraph(b)(1), specifying the time frame for aphased-in approach of the CFSP, asdiscussed in section II of this preamble.

In addition, in order to provideadditional clarification on what must besubmitted, the new languageincorporates the CFS–101 forms. Also,several improvements have been madein the Annual Summary of Child andFamily Services (CFS–101, Part II) formpublished in the NPRM based on severalcomments. The CFS–101 will bedistributed annually with guidance onsubmission and the States’ allotment fortitle IV–B funds.

In response to comments we havemade revisions to the CFS–101,including consolidating the budgetrequest for subparts 1 and 2 onto onepage. The information collected on theCFS–101, Part II includes informationthat was previously collected on theCWS–101 and the new requirements forthe collection of family preservation andsupport services information as requiredby statute and 45 CFR 1357.15(n)(3).

Comment: One commenterrecommended that the final rule berevised to require States and IndianTribes to earmark funds for granteescurrently operating a successful FamilySupport Community DevelopmentProgram to continue receiving fundsbeyond the two-year grant periodending September 29, 1995. The reasonfor this continuation is the extension offunding would allow grantees to focuson developing a 1–5 year self-sufficiency program for targeted AFDCclients to transition off welfare andbecome self-sufficient.

Response: Based on our commitmentto State flexibility, there is nothing toprohibit States from taking this action.

Section 1357.15(c) AssurancesUnder § 1357.15(c), the CFSP must

contain the assurances applicable toboth title IV–B programs, now listedhere. Once signed by the appropriateofficial, the assurances will remain ineffect on an ongoing basis (not justduring the period of the five-year plan)and will need to be resubmitted only ifsignificant changes in the State’s or theIndian Tribe’s program affect anassurance. This section has beenexpanded to be responsive tocommenters and include all assurancesrelating to programs covered under theCFSP.


Comment: The sole respondent askedthat the rule specify the list ofassurances applicable to title IV–B,subpart 1 and 2.

Response: The comprehensive list hasbeen incorporated here and into theCFSP requirements. As the NPRMstated, we provided States and IndianTribes with a comprehensive listing ofassurances in a Program Instructionissued June 8, 1995 (ACYF–PI–CB–95–17) to facilitate the submission of thefive year plans in the absence of a finalrule. At this time, the assurances haveall been incorporated into this final rule.

Section 1357.15(d) The Child andFamily Services Plan: General

Section 1357.15(d) provides that theCFSP must be developed based on threeimportant planning activities: Broadinvolvement and consultation;coordination of the provision of servicesunder the plan with other Federal andfederally assisted programs servingchildren and families; and collection ofexisting or available information todevelop opportunities for bringing aboutmore effective and accessible servicesfor children and families.

Comment: A number of commenterswere concerned with the relativevagueness of the coordinationrequirement and wanted a more preciselist detailing the Federal programs thatshould be coordinated. Severalrespondents suggested a cross-referenceto the listing of programs at§ 1357.15(l)(3)(viii).

Response: The regulatory language isnot being changed because this sectionis intended to generally encouragecoordination across Federal programs.In § 1357.15(l) virtually all of theprograms mentioned by the respondentsare identified.

Comment: Four commenters wantedparental involvement clarified toinclude parents of children who havebeen directly involved with the childwelfare system.

Response: Language has been revisedin § 1357.15(d)(1) to clarify that therequirement for consultation withparents should involve those who havedirect experience with the child welfareagency.

Section 1357.15(e) State AgencyAdministering the Programs

This section outlines which Stateagency is to be responsible for title IV–B administration.

Comment: One commenter asked thatwe specify that the organization chartinclude the name of the State agency’sdesignated coordinators for Section 504of the Rehabilitation Act and theAmericans with Disabilities Act.

Response: We are committed toproviding maximum flexibility in thisrule and have not requested this level ofspecificity in any submission.

Section 1357.15(f) Indian TribalOrganization Administering theProgram(s)

This section outlines the requirementfor submission of the name anddescription of the organizationresponsible for administering the titleIV–B programs.


Section 1357.15(g) Vision StatementThe new focus on family-based

services and community linkagesrequires changes in vision, philosophy,and in the design and delivery of childand family services. In order for Statesand Indian Tribes to develop a realisticyet forward looking CFSP, we believethat they must first set forth their visionin providing services to children andtheir families.

Comment: Many commenters wantedstronger connections made between theVision Statement and other elements ofthe CFSP.

Eight commenters requested astronger linkage between the vision andrelated goals and objectives and theprinciples set forth in § 1355.25. Severalof the eight respondents suggestedcross-referencing the sections. Onecommenter asked that demonstrationgrants be awarded to States to make thelink.

One commenter wanted to have theCFSP vision and related goals andobjectives specify how the principle ofcultural and linguistic competence willbe accomplished. In a similar veinanother respondent wanted the vision toincorporate diverse populations.

One respondent wanted to seebaseline data tied more closely to thedevelopment of the vision, goals andobjectives in the CFSP. At the sametime, the commenter wanted the finalrule to acknowledge both theexpectations and the real limits of theplanning process resulting in thedevelopment of the CFSP.

Response: The request for greaterlinkage of the Vision Statement withother sections of the CFSP is valuable.We encourage all States and IndianTribes to make thematic and contentconnections. The comments haveresulted in the adding of a requirementthat the vision must reflect the childand family service principles describedat § 1355.25. No other regulatorychanges to this section are being made.

Comment: Two respondents raisedissues about how to apply the VisionStatement.

One respondent questioned whetherthe Vision Statement will be more thanan affirmation of ideals and become abasis for measuring success as well as abasis for holding legislators andadministrators accountable.

Another commenter proposed thateach service provider under the planaccept the vision statement.

Response: The Vision Statement isone critical aspect of the CFSP thatprovides States and Indian Tribes withthe opportunity to create a positive andfuturistic general image of how they willorganize their child and family servicesystem, who it should serve, whatservices are needed, and how thoseservices will be delivered. The baselinedata, goals, and objectives, that flowfrom the Vision Statement, and are apart of the CFSP, will establish the basisfor measuring success andaccountability. All States and IndianTribes are encouraged to work towardreaching consensus with their particularset of service providers regarding thevision statement, since that willsignificantly contribute to the successfulimplementation of the CFSP.

Comment: Two commenters spoke tothe importance of cultural issues inrelation to the Vision Statement.

One commenter wanted to make surethe vision specified how principles ofcultural and linguistic competencewould be achieved.

The second respondent emphasizedhow important it was for diversepopulations to be involved in thedevelopment of the vision.

Response: In § 1355.25(e) theimportance of cultural factors in thedesign and delivery of child and familyservices is recognized. As noted above,a requirement that the vision mustreflect the service principles at§ 1355.25 has been added. It is ourexpectation that States and IndianTribes will forge visions which lead tothe creation and management ofculturally sensitive and culturallycompetent programs and practices.

Section 1357.15(h) GoalsIn order to translate a vision into

service delivery systems, States andIndian Tribes must build on their visionstatement and philosophy and developgoals for the next five years. Goals mustbe stated in terms of improved outcomesfor the safety, permanency and well-being of children and families and interms of the development of a morecomprehensive, coordinated, andeffective child and family servicedelivery system. We have added the


term ‘‘permanency’’ to the goalslanguage in the final rule because it hadbeen inadvertently omitted in theNPRM.

Comment: Four commenterssupported the goal setting activity andpointed out how important it was forgoals to be established in order toimprove outcomes, reform servicedelivery, evaluate performance, anddetermine effectiveness.

Response: The value of quality goalsetting within the context of the CFSPcannot be underestimated. It representsa commitment by the State or IndianTribe to accomplish certain effortsduring the CFSP five-year timeframeand is a statutory requirement. In orderto reinforce this time orientation, thephrase ‘‘and by the end of’’ is beingadded to § 1357.15(h).

Comment: Four commentersidentified the challenges andcomplexities inherent in the goal settingtask.

One noted that indicators of child andfamily well-being don’t change thatrapidly and are affected by externalfactors beyond existing policies andprograms.

Another cautioned that accurateinformation was not abundant and thiscould make the creation of ‘‘real’’ goalsdifficult.

One respondent pointed out that thisis a new activity for States, and therewill be a reluctance to a push for quickgoal setting.

Finally, one commenteracknowledged the challenges aroundsetting goals and asked for additionalregulations to help guide the process.

Response: Establishing goals is ademanding and essential activity andremains crucial to States and IndianTribes keeping track of their progressand accomplishments. Feedback fromfocus groups ACF conducted andcomments received in response to thissection of the NPRM affirmed thesalience of goal setting. The NPRM wassensitive to the fact that States andIndian Tribes possess varying degrees ofproficiency regarding goal setting, andan emphasis on making use of reliableand valid baseline data shouldcontribute to the development of ‘‘real’’goals. Moreover, States and IndianTribes will have the opportunity tomake revisions to their goals on a yearlybasis. In order to allow States andIndian Tribes substantial discretion indeveloping goals consistent with theirvision and philosophy, it would not beappropriate to generate additionalregulations in this area.

Although we are not providingadditional regulations in this area, wethought the following example of a

permanency goal, objectives, andindicators would be helpful:

Permanency Goal: Ensurepermanency for children in foster carethrough timely placements inpermanent homes.

Objectives: To increase by [x] percentthe proportion of children who exit thefoster care system through reunification,guardianship, or adoption within twoyears of placement.

To increase by [x] percent theproportion of children with specialneeds who are adopted annually.

Measures/Indicators

• The number of children who exitfoster care through reunification,guardianship, or adoption providedthrough AFCARS data.

• The number of children withspecial needs who are adopted annuallyprovided by AFCARS.

Comment: Several commentersaddressed issues related to the breadthand emphasis of the goals themselves.

A respondent asked that the goals beexpressed in terms of outcomes and thesame respondent along with anothercommenter asked that the goalsencompass matters of economic stabilityand independence.

A commenter argued that whereapplicable the goals should be specifiedfor any targeted groups.

A commenter listed a set of issuessuch as substance exposed newborns,teen pregnancy rates, infant mortality,immunization rate, etc., which shouldbe incorporated into the goals.

Response: ACF agrees that goalsshould be expressed in terms ofoutcomes. While outcomes addressingissues such as economic stability andindependence, infant mortality, andteen pregnancy rates are important, ACFis currently emphasizing the outcomeareas of safety, permanency, and well-being of children and families tomeasure child and family services.Specific outcomes will be discussed ingreater detail in future regulationsaddressing the child and family servicesreview process. State and Tribaldiscretion in developing specific goalsbased on philosophy, vision statement,and unique factors or circumstancesmust be preserved. Within this flexibleframework States and Indian Tribeshave the freedom to establish goalstargeted to particular groups.

Comment: Three commenters eithermade requests for modifying the contentin this section or questioned whetherany modification was possible.

One commenter requested that§ 1357.15 (h)–(k) be merged into onesection in order to strengthen

integration among goals, objectives, andindicators of progress.

One respondent encouraged theinclusion of content from a particulardocument, developed by a non-governmental organization withexpertise in family preservation andfamily support, on the topic of planningfor family preservation and supportservice programs.

One commenter wanted to know if thegoals specified in the preamble to theNPRM were the official set of goals andwhether goals other than those listedwere acceptable.

Response: There are a number ofvaluable documents that have beenpublished by various organizationswhich States and Indian Tribes mayfind useful as they plan, revise andimplement their five-year plans. Statesand Indian Tribes are encouraged tomake use of all materials which theyfind suitable. Goals, objectives,measures of progress and baselineinformation have been treated inseparate sections to ease understandingand emphasize the importance of eachelement in the CFSP. However, asexplained later, the language in§ 1357.15(j), Measures of Progress, hasbeen revised to better link themeasurement criteria to theaccomplishment of goals and objectives.The goals set forth in the preamble tothe NPRM are for illustrative purposesonly. State and Indian Tribes have thelatitude to develop goals germane totheir situation.

Section 1357.15(i) ObjectivesWith a focus on outcomes for

children, youth, and/or families or onelements of service delivery in theCFSP, objectives should include interimprogrammatic benchmarks, dates ofaccomplishment and a long-termtimetable, as appropriate.

We recommend that familypreservation and family supportservices be targeted on populations andin geographic areas of greatest need.Targeting may include a range ofvulnerable populations (children, youthand/or families) in specific geographicregions, counties, cities, communities,census tracts, or neighborhoods. Statesshould also consider targeting servicesto support community-based strategieswhich draw on multiple fundingstreams and which bring a critical massof resources to bear in high-needcommunities.

Comment: Several commentersaddressed the geographic scope ofimplementation of family preservationand family support services as spelledout in the Objectives section andreflected in the delivery of services. One


respondent called for making therequirements Statewide. Anothercommenter emphasized focusing ongeographic areas and populations withthe greatest need.

Response: There will be no change inregulatory language. There is norequirement that services be Statewide,although States are encouraged to movein that direction. States and IndianTribes will retain authority to target ina manner they deem most appropriate.

Comment: We received fourcomments to our request on theadvisability of developing model planguidelines. Two commenters asked thatwe not issue model guidelines. Instead,they suggested ACF further supportplanning efforts by developing ways toencourage the State planning process tomeet child and family service planobjectives and goals. Alternatively, twocommenters indicated that modelguidelines would be of great assistance.

Response: In light of the fewcomments received and our desire toprovide maximum flexibility, we havedecided not to pursue the developmentof model plan guidelines. However, wewill continue to work in a collaborativepartnership with States and IndianTribes. A comprehensive technicalassistance contract was awarded in 1995to assist States and Indian Tribes in thedevelopment and implementation of theCFSP. In addition, we will continue toprovide in-house technical assistance aspart of the joint planning provisions toassist States and Tribes in developingand implementing the CFSP. While wewill not publish model plan guidelines,we will disseminate exemplary Stateand Indian tribal plans that can be usedas models.

Comment: One commenter asked thatobjectives be required to determineprogress, as well as promote monitoringand ongoing assessment.

Response: We feel the existingregulatory language on objectives, whencombined with the annual progressreports, will accomplish this.

Comment: Several commenters wereconcerned by various elements of theexamples provided in the preamble tothe proposed rule. One commenterrecommended that we state instead,‘‘reduce the number of childrenremoved from poverty and/or substanceabusing families through the use offamily support type services.’’

Another commenter suggested thatexample 3, which speaks to reducingthe number of reports of child abuse andneglect cases involving serious injury berevised to insert the word‘‘substantiated’’ before ‘‘report,’’ citingthe concern that the number of reports

should not be used as a negativebenchmark.

Still another commenter criticized theexample objectives as very traditionaland narrow that might encourage peopleto think in black and white and lead tobad practices. This commenterrecommended we provide insteadexamples that are more ‘‘non-traditional’’ and that focus on elementsof service delivery that are linked tooutcomes in important ways. Finally,one commenter noted that the examplesprovided were all related to childrenand families and questioned whetherobjectives related to system changeswould be acceptable as well.

Response: The respondents’comments are well taken and may be ofassistance to other States in pursuingtheir objectives. However, since theyspeak only to the examples of objectivesprovided in the preamble of theproposed rule for illustrative purposesonly, we are not making any changes tothe rule at paragraph (i) of § 1357.15.States and Indian Tribes shouldestablish objectives which reflect theirown priorities, funding decisions andstrategies for providing child and familyservices. However, we would like tohighlight the importance of establishingobjectives which focus on outcomes forchildren, youth and families or onelements of service delivery and systemchange that are linked to outcomes. Westrongly believe that outcome basedgoals and objectives allow the State anopportunity to obtain better informationabout the safety, permanency and well-being of children and families.

Comment: Two commenters suggestedtechnical changes to the languageprovided at paragraphs (i) (1) and (2) of§ 1357.15. The first asked that we revisethe language in (1) to add that theobjectives focus on elements of servicedelivery including staff competenciesand staff workloads and in paragraph (2)to add reference to improving thequality of existing services. The othercommenter suggested in paragraph (1)that we should change the wording from‘‘each objective should focus onoutcomes’’ to ‘‘must focus onoutcomes,’’ since should fails to conveythe necessary imperative.

Response: While we have no problemwith the technical language raised bythe commenters in the first twoinstances, we are not adding thislanguage to the rule. We believe the ruleis sufficiently broad to support theseexamples and should remain broadenough to allow States and IndianTribes flexibility to set their ownobjectives. The rule will remainunchanged with regard to the focus onoutcomes in developing objectives. A

focus on outcomes is not required, butcertainly encouraged.

Section 1357.15(j) Measures ofProgress

In response to comments we received,we have added a statement that theState, in its CFSP must assure that thedata and information to measureprogress will be collected, organizedand analyzed in a quality manner, andthat the data and information willensure States’ and Indian Tribes’ abilityto gauge progress towards achievingtheir goals and objectives.

Depending on the goals, objectives,and outcomes selected, measuringprogress may be based, in part, onquantifiable indicator data (e.g.,numbers of substantiated child abuseand neglect reports) or on the results ofactivities such as monitoringmechanisms, quality assurance efforts,other information collection activities,other planning processes, and internalevaluations.

Comment: Several respondents dealtwith the relationship betweeninformation systems and measuringprogress.

One commenter suggested that theinitial outcome measures be theestablishment of systems (SACWIS/AFCARS/NCANDS) and description ofprocesses.

Another commenter noted thatSACWIS will not be fully operational intime to gather baseline and programdata. The same commenter noted thatoutcome evaluation/quality assurancedeterminations will be derived fromSACWIS when it is operational andStates will need increased flexibility onthe part of the Department whendemanding additional data.

Response: With respect to the firstcomment, unless the design andimplementation of automatedinformation systems is a specific plangoal, it cannot be viewed as appropriateindicators of progress toward meetinggoals, objectives and outcomes of theCFSP, but rather as eventually a sourcefor obtaining data and information todetermine progress.

This rule has been written to provideStates and Indian Tribes with thenecessary flexibility to determine howthey will measure progress and collectquantifiable data. While States aremaking enormous strides in developingand implementing automatedinformation systems and there is a needto support and encourage these actions,we agree that these systems will not beoperational in time to collect and reportbaseline data, and it will take a whilebefore they are capable of ascertainingprogress.


Comment: Two respondentsconsidered factors related to the qualityof the measures of progress.

One commenter recommended thatthe requirements of this section shouldgo further and require the grantee todemonstrate the validity of the measureof progress it has chosen suggesting thatwe add: ‘‘The CFSP should describehow the measurement criterion selectedto assess each goal and objective can beexpected to gauge accurately theprogress toward achieving that goal orobjective.’’

Another commenter expressedconcern that measures must be realisticand attainable.

Response: We agree and theregulatory language has been revised at§ 1357.15(j) by adding a second sentenceto incorporate their suggestions.

Section 1357.15(k) BaselineInformation

In order to properly measure, monitor,and adjust activities, States and IndianTribes must assemble baseline data,drawing first on what is existing andavailable. The specific collection ofservice data is important, and central tothe CFSP development andimplementation process.

The following suggestions of possibleindicators of child and family well-being and service delivery status will beuseful for setting goals and objectives,for targeting services geographically andto priority populations, for detailedservice planning, and for assessingprogress. Although these examples wereincluded in the proposed rule, due tosubstantial interest in them from thepublic, we are repeating them here.

(1) Examples of indicators on childand family well-being: Number ofsubstantiated reports of child abuse andneglect, percent of children bornaddicted or drug exposed, reducingchild fatalities, incidence of domesticviolence, number of children in out-of-home care, number of children inpsychiatric placements, number ofchildren awaiting adoption, and youthin stable living situations after exitingfoster care.

(2) Examples of indicators related toother services systems: Percent of lowbirth-weight babies, percent of birthsthat are to single teens, teen pregnancyrate, immunization rate, percent ofchildren in poverty, percent of childrenin single-parent families, percent offamilies receiving title IV–A, runawayand homeless youth rate, child/youthsuicide rates, juvenile violent crimearrest rate, teen violent death rate,percent of teens not in school and notin labor force, percent of teensgraduating from high school on time,

high school dropout rate, and percent ofeligible children in Head Start.

(3) Examples of indicators on theState’s (or the Indian Tribe’s, asappropriate) service delivery capacity:The extent to which child welfare,family preservation, and family supportservices are available and beingprovided (e.g., number and percentageof families served, waiting lists, etc.);the availability of out-of-home care andplacement (including adoption)resources; the availability of preventionand intervention services; theavailability of critically needed servicessuch as housing and substance abusetreatment; the extent to which existingservices are coordinated with theprovision of other child and familyservices, particularly child protectiveservices and independent living services(e.g., indicators of successful referrals);and the funding resources andexpenditures, geographic availability,numbers of persons served, andinsufficient service capacity (unmetneeds) related to these services.

(4) Examples of indicators States orIndian Tribes, as appropriate, might useor seek to develop relating tostrengthening the delivery of servicesand accomplishing goals and objectives:The extent to which resources areavailable for training, technicalassistance, and consultation, includingleadership development, staffdevelopment, and interdisciplinarytraining; the existence and utilization ofquality assurance measures, programdevelopment and management and dataanalysis; and the implementation,expansion, and utilization ofmanagement information systems.

Comment: Several commentersresponded to the value and importanceof baseline information and whatconstitutes sufficient information andon the range of services needed byfamilies being served by familypreservation and support servicesincluding social, health, educational,and economic services. One respondentcalled for the gathering of informationon all programs intended to meet theneeds of families. One commenterargued that the identified needs shouldreflect ‘‘real’’ family concerns. Incontrast, another commenter suggestedthat consideration be given toeliminating the baseline informationcollection requirement. Severalcommenters wanted clarification as tohow much information is adequate andhow the State and Indian Tribe and/orACF will determine how much isenough.

Response: There is a statutoryrequirement for States and eligibleIndian Tribes to develop a five-year plan

with goals and objectives and to reviewprogress towards meeting those goalsand objectives on a yearly basis.Information obtained from focus groupsand respondents’ comments haveemphasized the importance of baselinedata to developing responsive goals andobjectives. In keeping with the approachof flexibility, we are not settingrequirements regarding specific baselineinformation to be collected, except forour condition in § 1357.15(k)(3) thatinformation about existing familypreservation and family supportservices must be included. Thedetermination of what constitutesadequate baseline information andspecific family preservation and familysupport information for a particularCFSP will be made in the context of thejoint planning process.

Clarification on what is acceptabledocumentation for submission by IndianTribes is being provided by adding thefollowing sentence to § 1357.15(k)(2):‘‘An Indian Tribe may submitdocumentation prepared to satisfy therequirements of other Federal childwelfare grants, or contracts (such as thesection 638 reporting form), along witha descriptive addendum addressingspecifically the family preservation andfamily support services available.

Comment: We received severalresponses to the request in the NPRMfor public comment on the proposedindicators and the usefulness ofdefining indicators more concisely sothat uniform definitions can bedeveloped.

One commenter felt the suggestedindicators were comprehensive, coveredthe priority areas, and that more concisedefinitions were not needed.

One commenter noted that specificguidelines would be preferable at somepoint in the future when all involvedparties have more knowledge.

Another commenter recommendedthat a few indicators be selected andrequired across states, with otherinformation remaining optional.

An additional respondent asked forflexibility, especially at the outset of theprocess.

Response: The comments we receivedhave convinced us to maintainflexibility in this aspect of the proposedrule. No specific baseline indicators willbe mandated and there will be noattempt to establish uniform definitions.The AFCARS and SACWIS shouldcapture necessary national data and itserves no useful purpose to duplicatethose requirements in this rule. Statesand eligible Indian Tribes will have fulldiscretion in identifying,operationalizing and employing


baseline data elements responsive totheir CFSP.

Comment: Several commenters wereconcerned that the breadth ofinformation and unreasonable amountsof detail required for the five-year planis burdensome.

One respondent pointed out that theprolific information being requestedwill be disorganized and the accuracy ofthe information dependent upon thesources of the information.

Among the commenters who raisedthe burden issue, one suggested a lessdetailed summary be used as analternative for Federal purposes such asthe review by regional offices duringongoing joint planning meetingsbetween ACF and States and Tribes.

Another respondent argued fornarrowing the focus of data collectionon unmet needs, while a third called forselecting some representative servicesthat are statewide, but keeping the dataat the State level for review and notpassing it on to the Federal government.

One respondent noted that datacollection poses a particular burden forall Tribes, especially small ones,considering the modest amount of fundsavailable to them under title IV–B,subpart 2. The respondent proposed thatTribes be allowed to submit data theycollect for their Indian Child WelfareAct 638 reports with a description ofadditional services that will or havebeen provided or personnel employedthrough the use of additional title IV–Bfunding.

Response: We do not wish to place aburden on States or Indian Tribes toexpend excessive energy and resourceson preparing and presenting copiousamounts of data. Nor do we wish toover-burden the joint planning processwith an exhaustive review and analysisof data. Therefore, we have clarifiedparagraph (k)(3) to specify that asummary of the information used indeveloping the plan must be included.We expect States and Indian Tribes toconduct appropriate data collectionactivities to thoroughly and accuratelyinform their planning efforts.

We agree with the recommendation toreduce the reporting burden on Tribesand have amended paragraph (k)(2) toprovide that Indian Tribes may submitother documentation, such as the 638reporting form, with a descriptiveaddendum addressing specifically thefamily preservation and family supportservices available, as described above.

Comment: A number of commentersraised cost issues in relation to baselinedata.

One commenter expressed concernthat the costs associated with collectingbaseline data would be counted as an

administrative cost and subject to the 10percent cap.

Another commenter wanted to knowif there would be additional funding tocover research or administrative costsassociated with hiring professionals toidentify and collect baseline data.

One respondent wanted flexibilityregarding data collection in order toreduce costs.

One commenter argued that Statesmay well confront tough decisionswhen trying to decide how to pay forthe costs of data collection and thiscould lead to a number ofcomplications.

Response: Given the fact that thebaseline information process is integralto the development of the CFSP, wehave modified § 1357.32(h)(3) toconfirm that data collection is viewed asa program cost as it is a part of thepreparation of the CFSP and is notsubject to the 10 percent administrativecap limitation.

In light of our decision to allow a datacollection process responsive to theunique needs of each jurisdiction and asummary submission of data in theCFSP, both of which are based onexisting and available data, we believeany and all costs associated withbaseline information will not place anundue financial burden on any State oreligible Indian Tribe.

Comment: A number of commentsaddressed the role of automatedinformation systems in relation tobaseline information. Severalrespondents saw the merits and urgedcontinuation of the emphasis onrequiring States to develop and useautomated information systems toensure availability of baseline data.Several commenters noted that thepreamble speaks to systems beingdesigned (SACWIS) that may serve as asource of valuable information, but wereconcerned that States may not havetheir systems operating in time to be asource of baseline data for thedevelopment of the CFSP. One of thecommenters urged ACF to give theStates flexibility when additional data isrequired.

Response: We fully recognize thevalue and importance of automatedinformation systems to improveprograms and practices and feel we haveinstituted flexible policies andregulations designed to increase theirusage and improve their operationthroughout the child and family servicesystem. We recognize that a State’sSACWIS may not be operational in timeto provide baseline data for the firstfive-year plan. In fact, not all States planto develop a SACWIS. However,AFCARS should eventually be available

to provide additional and updated datanecessary to measure progress duringthe five-year period in accordance with§ 1357.15(k)(1).

Comment: Several commenters dealtwith the relationship between targetingand baseline data.

One commenter noted that thepreamble speaks to targeting services tocertain populations and/or geographicareas and asked, if services are targeted,whether targeted data collection wouldbe allowed.

Another commentator suggested thatlanguage be included to allow States orIndian Tribes which may concentrateresources in a few targeted communitiesto use community-level rather thanstate-level data to track the process.

Several respondents suggested thatthe requirement that states gather andupdate statewide information on childand family well-being and onavailability of services be clarified toexplain that baseline data should helpguide initial decisions about targetingand serve as the basis for trackingprogress over time.

Response: A statewide or Tribalcollection and analysis of data isnecessary in order to conduct thestrategic planning process and developgoals and objectives as spelled out in§ 1357.15 (a) and (b) and to targetservice decisions. In paragraph (k)(2) of§ 1357.15, we have required the State orTribe to collect and analyze data on aStatewide or Tribal-wide basis only forFamily Preservation and FamilySupport Services. However, if servicesare targeted, the focus of on-going datacollection and analysis likely will be inthose targeted areas in order to ascertainprogress in accomplishing plan goalsand objectives. Targeted data collectionis acceptable and appropriate in theseinstances, provided that this data iscollected with overall statewideinformation.

States and Indian Tribes also have anongoing responsibility to keep a currentstatewide or Tribal-wide baseline database in order to keep apprised ofemerging problems, new populationsexperiencing new challenges, groupscurrently being served who areexperiencing new challenges, and totrack trends over time. These inevitablechanges will likely result inmodifications to the CFSP over its five-year life span.

Comment: Several commenters askedthat we delete what was perceived as avague statement in this section, ‘‘otherservices which impact on the ability topreserve and support families may beincluded in the assessment’’, andinstead require baseline data on the fullrange of services needed by at-risk


children and families; specificallyincluding mental health services,substance abuse services, etc.

Response: No changes are being made.The statement interpreted bycommenters as being vague wasintended as an acknowledgement of theenormous variety of programs andservices in different State and IndianTribes and a means of providing bothgroups with sufficient discretion todetermine appropriate data sources. Therequest to require baseline data on thefull range of services needed by at-riskchildren and families would be overlyprescriptive. States and Indian Tribesare encouraged to include the collectionof data from service systems other thanthe child and family service continuum,but it is not being required.

Comment: Several commentersaddressed different facets ofcategorizing the baseline information.

One commenter suggested that Statesbe required to gather baseline data onchild and family well-being and servicedelivery capacity that is grouped byindicator specific to minority groups aswell as information on theappropriateness of training, technicalassistance, consultation and qualityassurance of service delivery capacityfor specific targeted groups.

Another commenter wanted to makesure that the categories of baselineinformation used in developing the planbe cited.

A respondent asked that the ruleexplicitly state certain categories ofbaseline information that must beincluded.

Response: The suggestions made bythe respondents are reasonable andappropriate. Nevertheless, given theenormous diversity among States andIndian Tribes in terms of the needs oftheir various child and familypopulations, the services they areproviding, as well as how they areorganized to deliver the services tothose in need, we are resistant tospecifying categories of information orprecise indicators that must beincluded. The categories of indicatorscited in the preamble of the proposedrule and reiterated here are only meantto be illustrative. Each State and IndianTribe with the ACF Regional Office willdetermine the appropriate schema forcategorizing its baseline information.

Comment: One commenter indicatedmore technical assistance will beneeded in this area since activity islikely to become fragmented.

Response: ACYF implemented asignificant five-year technical assistanceinitiative in fiscal year 1995 whichinvolved funding a set of nationalresource centers and a technical

assistance coordination contractor.States and Indian Tribes seekingassistance will be able to receive it byworking with ACF and resource centerstaff.

Comment: A commenterrecommended using positive languagefor our examples of indicators such asusing ‘‘reducing child fatalities’’ asopposed to ‘‘child death rate’’.

Response: This is an excellentsuggestion and we encourage all Statesand Indian Tribes to consider thecommenter’s recommendation aboutadopting a more positive orientation asthey develop labels for their indicators.

Section 1357.15(l) ConsultationWe received 22 comments to this

section. Overall, the remarks werepositive, expressing endorsement for theuse of broad-based consultation with thepublic and private sectors.

As a condition of CFSP approval,Section 432 requires that the plan bedeveloped by the State and the IndianTribe after consultation with a widerange of appropriate public andnonprofit private agencies andcommunity-based organizations withexperience in administering services forchildren and families (including familypreservation and family supportservices). In this section we arerequiring States and Indian Tribes todescribe their consultation process andwe have included suggested lists ofgroups that may be involved in theprocess.

The Department believes that Statesand Indian Tribes will benefit from abroad, active consultation process instrengthening the planning andimplementation of the CFSP. In keepingwith State flexibility we have notmandated either a particularconsultation process or a specific list ofentities with which States and IndianTribes would be required to consult.

We believe the suggested categories ofparticipants in the consultation processprovided in paragraph (l)(3) represent aminimal level, mandated by section432(b) of the statute, of programmatic,political/administrative, andexperiential involvement in thisprocess. We continue to encourageStates and Indian Tribes to go beyondthe suggested list and include othercategories of organizations andindividuals based on State and localcircumstances.

Comment: Three commenters raisedconcerns regarding the list of suggestedagencies to be involved in theconsultative process. The concernsfocused on what happens if a State failsto consult with each of the groups listedand that the list of actors was overly

prescriptive and unnecessarily createsmonitoring and compliance issues. Itwas felt that recommendations would behelpful but a defined list will not assuremeaningful involvement.

A related comment suggested that inorder to ensure that the range ofconsultative groups are seriously andconsistently consulted, States should beheld accountable for how and to whatextent they included each category inthe planning process. It was alsosuggested that we could clarify thedifferent forms that consultation cantake and that ACF include arequirement for a clearly definedbeginning, middle and end to theconsultation process.

Response: While the consultationprocess and a wide range of appropriatepublic and nonprofit private agenciesand community-based organizationswith experience in administeringservices for children and families arerequired by statute, we believe Statesand Indian Tribes should retainflexibility to determine both the formand the intensity of consultation andparticipation by various groups. Also, asstated above, the list is a suggested listand, while we feel all groups should beinvolved, we are not mandating thateach one must be consulted. We wouldhope that over time each group will bebrought into the process.

With respect to mandating a specificprocess for consultation with distinctclosure, we have intentionally left thisopen to provide flexibility for suchprocesses to be ongoing and to bedeveloped at the State/Tribal level.

Comment: Several commenters askedthat we amend paragraph (l)(3)(vii) tostrongly emphasize the vital role thatcourts and legal advocates play inservice planning. Specifically, theysuggested that we replace ‘‘the courts’’with ‘‘Representatives of the courtsystems (including, in States receivinggrants under section 13712 of Pub. L.103–66, a designee of the highest Statecourt), attorneys representing parents,children and the State agency independency cases; and any guardian adlitem or court-appointed specialadvocate (CASA) programs operating inthe State.’’

Response: We believe the existingreferences provided to courts,individual practitioners working withchildren, and law enforcement supportour recognition of the important role ofthe judiciary and legal systems. Weagree with the commenter and weencourage the states to considerseriously the merits of the involvementof the legal realm.

Comment: Many comments suggestedadditional specific categories of


required consultation, i.e., protectionand advocacy organizations,professional organizations, Children’sTrust Funds, mental health anddevelopmental disabilities agencies,youth agencies which have nottraditionally provided child welfareservices, replace the general reference to‘‘housing program’’ with reference tospecific, ‘‘State agencies with regulatoryauthority over federally funded localhousing agencies, State agenciesadministering section 8 housingprograms, State housing financingagencies and State fair housingagencies,’’ the local chapter of theAmerican Academy of Pediatrics, andpediatricians among major actors listedto encourage States to include a familysupport and prevention focus in theplanning process. One commenterargued that collaboration was themainstay of this rule and they wereperplexed at the lack of mention of theCommunity-Based Family ResourceProgram. This commenter believes it iscritical that the Federal governmentseek to unify these potentiallypolarizing initiatives and provideguidance to the States through example.

Response: These are excellentsuggestions, and we urge states andTribes to consider them in the on-goingconsultation process. However, we havemade three changes based on thesecomments. First, we have revisedparagraph (l)(3)(viii) to include, assuggested by the commenters, theChildren’s Trust Funds and theCommunity-Based Family ResourceProgram in the list. The Community-Based Family Resource Program and theFamily Preservation and FamilySupport programs are linked bycommon purpose and approach toserving children and families. Bothprograms are administered by ACYFwith maximum coordination at theFederal level. The Community-BasedFamily Resource Program was notspecifically mentioned in the NPRM asit had just been enacted. The programwas reauthorized under Pub. L. 104–235, the Child Abuse Prevention andTreatment Act Amendments of 1996which was signed into law on October3, 1996. FY 1995 was the first yeargrants were made to States for thisprogram. The other changes aretechnical corrections. One is to providefor ‘‘IV–F’’ employment and training.The other change removes redundantlanguage in the introductory sentence,changing ‘‘including, but not limitedto,’’ to ‘‘which may include:’’.

Comment: Three commenterssuggested that the CFSP be required toaddress measures to prevent planninggroups and committees from being

dominated by agency officials andprivate service providers such as bylimiting public and private agencypersonnel to no more than 50 percent.Another commenter suggested that thefinal rule be clear about the level ofinvolvement appropriate for each of theactors.

Response: We believe that to limit thenumber of consultation partners in thefinal rule would represent a significantdeparture from our commitment toprovide flexibility. However, we wouldnote that the rule does provide Stateswishing to do so with sufficientflexibility to determine the intensity ofparticipation.

Comment: One commenter asked thatin paragraph (l)(1) we add thatinformation be included that facilitatesthe active, informed involvement ofparents and children previouslyimpacted by the social service deliverysystem within the State.

Response: Parental involvement isaddressed in paragraph (l)(3)(iv), thusadditional language is not necessaryhere. However, in response to thiscomment, we have amended thelanguage to include children involvedwith, and children not involved with,the child welfare system.

Section 1357.15(m) ServicesCoordination

Service coordination is critical to theimprovement of access and appropriatedelivery of a range of services tochildren and their families.

Examples of services and programsare:

• Within the State agency: Existingfamily support and family preservation;child abuse and neglect prevention,intervention, and treatment; foster care,reunification, adoption, andindependent living services, and

• Other public and nonprofit privateagencies, including community-basedorganizations, which provide Federal orfederally assisted services or benefits.

Examples of major programs are: Thesocial services block grant; title IV–A;child support; maternal and childhealth; title XIX (Medicaid, EarlyPeriodic Screening, Diagnosis, andTreatment (EPSDT)); mental health andsubstance abuse services; Community-Based Family Resource programs andchild abuse prevention (Children’s TrustFunds); transitional living; runawayyouth and youth gang prevention;education; developmental disabilities;juvenile justice; early childhoodeducation and child developmentprograms (Head Start); domesticviolence; housing; nutrition (FoodStamps, Special Supplemental FoodProgram for Women, Infants and

Children (WIC)); child care anddevelopment block grant and otherchild care programs; the communityservices block grant; EmpowermentZones and Enterprise Communitiesprogram (EZ/EC); education (school-based services); and justice programs.

Comment: We received severalcomments to expand the list of servicedelivery providers here to includeadvocacy services, the mental healthand developmental disabilities servicessystem and the State agencies withregulatory authority over housing.

Response: In paragraph (m)(1) wehave clarified those organizations whichmay be involved in the planning processby adding additional examples inparentheses.

Comment: Several commentersthought that more guidance should beprovided here and the purpose of thecoordination requirement made explicit.One of these commenters wasconcerned that without greaterspecificity regarding goals, servicecoordination will continue to besecondary and out of step with the‘‘holistic approach’’ to serving childrenenvisioned. This commenter suggestedthat the CFSP should be required toinclude specific, concrete steps towardservice coordination and to specifywhen during the five year period thesesteps will be completed.

Response: We have not accepted allthe suggestions made, but we haveamended paragraph (m)(1) to add astatement of purpose—that is, that theservices coordination process is toimprove access to services and delivera range of services to children and theirfamilies. Again, we believe that theprocess itself should be left to thediscretion of individual States andIndian Tribes.

Comment: Several commenters askedthat we revise paragraph (m)(2) to state,‘‘coordinate * * * to ensure that at-riskchildren and families have access to allservices necessary to protect the safetyof family members, promote familystability and prevent out-of-homeplacement whenever possible,regardless of the boundaries. * * * ’’These commenters further suggestedthat the examples provided includedeveloping compatible and linkedcomputer systems.

Response: We have revised thelanguage in paragraph (m)(2) to include‘‘linked automated informationsystems’’ as an example of a process thatwill lead to additional coordination ofservices. In regard to the remainingcomment, we feel that the purposesexpressed by these commenters arecaptured throughout the rule andtherefore have not revised the language.


Comment: One commenterrecommended that the requirements forservice coordination under paragraph(m) and family preservation and familysupport services and linkages to othersocial and health services underparagraph (o) be merged into a singlesection which clearly states that theultimate purpose of service coordinationis to improve the well-being of children,youth and families. This commenterstated that while the preamble is clearon the importance of systemcoordination, the rule is not; and theysuggested the rule be revised to clearlyspecify that there should becoordination with service deliverysystems providing social, health,education and economic services tochildren and their families but also withmental health, developmentaldisabilities and housing systems.

Response: While we agree thatparagraphs (m) and (o) speak tocoordination and linkages of servicesrespectively, we do not believe theserequirements should be merged as eachparagraph also has a separate aim. Theintent of paragraph (m) is to describe theoverall coordination process for the fullrange of child and family servicesprovided by the State. Whereas,paragraph (o) is focused on theexpansion of family preservation andfamily support services and the linkageswith other services and service deliverysystems as well as within the child andfamily services continuum.

Section 1357.15(n) ServicesAt the heart of the State and Indian

Tribal plans is the description of childand family services. We believe that thedescription of services required in thissection is one of the most importantaspects of the CFSP. Not only will itprovide a comprehensive picture of theservices provided and resourcesavailable, it can clearly illustrate Stateand Indian Tribal decision-making indirecting services toward the goals andobjectives in the CFSP and form thebasis for discussion of futurecoordination of services and improvedservice delivery.

We have also noted in the rule thatseveral of the requirements (providinginformation on child protective services,child welfare services, familypreservation and support services, fostercare, and adoption) of paragraph (n) canbe met by completing the CFS–101, PartII—the Annual Summary of ChildWelfare Services.

Comment: One commenter asked thatwe revise paragraph (n) to encourageStates to specify private support as wellas publicly supported family supportprograms in their child and family

services continuum, at least in targetedcommunities. This commenter alsorecommended that the rule provide thatchild abuse and neglect prevention,intervention and treatment should bereported separately and distinctly fromfoster care even though they are bothincluded in the child and familyservices continuum.

Response: While information onprivate family support programs may beincluded in a State’s CFSP and areimportant in helping States to determinewhere to target resources, for purposesof Federal reporting, States need onlyreport information on publicly fundedservices. We believe it is clear that childabuse and neglect prevention,intervention and treatment are to bereported separately from foster care andwe have not made any changes inresponse to this comment.

Section 1357.15(o) FamilyPreservation and Family SupportServices and Linkages to Other Socialand Health Services

In meeting this requirement, Stateswill use, in part, the informationgathered on the availability of familypreservation and family supportservices (see § 1357.15(k)(2)). Since FY1995 is the first year in which all Statesare implementing the new title IV–B,subpart 2 (family preservation andfamily support services,) we believe thisinformation will provide a nationaloverview of the development, operation,and/or expansion of family preservationand family support services in all Statesas well as identify the processes Statesare using to develop coordinatedsystems of care.

Comment: Commenters asked thatStates be specifically required to linkfamily preservation and family supportto mental health and education.

One commenter asked that the childand family services plan explain howFederal mental health funds under theChild and Adolescent Service SystemProgram and the Child Mental HealthService Program, in addition to CAPTAand ILP will be coordinated with theState’s child and family services systemof care.

Response: While we do not requirelinkage to specific additional programsor services beyond those directly in theplan, we believe the language inparagraphs (m) and (o) is sufficientlybroad to accommodate the serviceslisted by the commenters.

Comment: One commenterrecommended that we amend theservice requirement to specify that theCFSP describe how the new familysupport and family preservation serviceprograms will relate to privately funded

as well as publicly funded familysupport services.

Response: We believe thecommenter’s point is addressed in§ 1357.15(o)(3) which requires the CFSPto describe the linkage and coordinationof services in the continuum and otherFederal and non-federally funded publicand non-profit private programs.

Section 1357.15(p) Services inRelation to Service Principles

We included the child and familyservices principles in this rule at 45 CFR1355.25 to assure that services designedwith title IV–B funding would beconsistent with a vision expressed bypractitioners in the field, which we haveembraced. We believe these principlesare the basis for the development ofeffective, responsive, and qualityservices programs.

Comment: One commenter asked thatreference to principles of child andfamily services be clearly distinct fromthe vision, goals and objectives that aCFSP contains. From the commenter’sperspective, the CFSP’s vision, goalsand objectives are the factors againstwhich progress should be measuredwhile principles are to be used asguidelines.

Response: We agree with therespondent’s interpretation of thedistinction between the principles andthe vision, goals and objectives andbelieve this distinction is clear inparagraphs (h) and (i).

Section 1357.15(q) Services inRelation to Permanency Planning

The ‘‘permanency provisions’’enacted by the Adoption Assistance andChild Welfare Act of 1980 (Pub. L. 96–272) focused on the importance ofproviding preventive and crisisintervention services and establishingpermanency for the children in fostercare. Through permanency planning,children were to be placed in permanentliving arrangements as quickly aspossible. Permanency is still thecornerstone of child welfare practicewith children.

In October 1994, Pub. L. 103–432 waspassed, amending the Social SecurityAct. One of the amendments repealedsection 427, effective October 1, 1996.The protections that were formerlyunder section 427 of the Act are nowincorporated in section 422(b)(9) as titleIV–B Plan requirements. Departmentpolicy has been and continues to be thatthe State, as required by statute, isresponsible for providing theseprotections to all children, includingIndian children. The specificarrangements with respect to Indianchildren under Tribal jurisdiction can


be effective only if they are discussedjointly by the State and the Tribe. Weare accordingly requiring that the CFSPinclude a discussion of thearrangements that the State has madewith Tribes for this purpose. It isexpected that the States will take theinitiative to contact all Tribes, if theyhave not done so already, for thepurpose of ensuring that the 422(b)(9)protections are provided to Indianchildren. Likewise, a Tribe that wishesto receive direct funding must includein its Plan a discussion of thearrangements that have been made withthe State (see § 1357.40).

Comment: One commenter requestedthat we illustrate that familypreservation and family supportservices can and should be provided tofamilies when children live apart fromtheir families in order to achievepermanency for children.

Response: We agree with the thrust ofthe respondent’s comment and believethat the definitions of familypreservation and support services in§ 1357.10 and the principles at§ 1355.25 all support the use of familypreservation and family supportservices with children living apart fromtheir families as well as with familiesbefore children have been removed.Family preservation and family supportare two critical strategies to be used toachieve permanency for children.

Section 1357.15(r) Decision-MakingProcess: Selection of Family SupportPrograms for Funding

In making funding decisions forfamily support services, we stronglyrecommend that States examine thework and accomplishments ofcommunity-based organizations andlook to them as the providers of firstresort of family support services. It isthese organizations, based in andtrusted by the community, whichtypically have the knowledge andexpertise to effectively provide theseservices.

Comment: One commenter suggestedthat the requirement for decisionmakingbe expanded to include information onhow the State will select criteria forfunding services over the five-yearperiod.

Response: While we believe thatStates should establish such criteria tosupport decisionmaking, we believe thatsuch requirements for selection are notrequired for Federal reporting purposes.

Comment: One commenter noted thatthe preamble recommended that Stateslook to community-based organizationsthat are based in and trusted by thecommunity as the highest prioritypotential providers of family support

services and was concerned that there isnothing in the rule to allow Federalofficials to know the extent to whichsuch community-based organizationsare in fact the providers of theseservices. The commenter recommendedthat the CFSP be required to reflect inmore detail the nature of the providersthat are chosen and what percentage ofthe family support dollars are beingprovided by different types ofcommunity-based organizations.

Response: The Statute requires thatfamily support services be community-based, not necessarily provided bycommunity-based agencies. We supportState efforts to set detailed guidelines orcriteria regarding selection and theextent to which different types ofcommunity-based organizations shouldbe involved. However, reporting of thisnature would not be necessary forFederal purposes.

Section 1357.15(s) Significant Portionof Funds Used for Family Support andFamily Preservation Services

A statutory requirement of section432(a)(4) of the Act, this provision isdesigned to assure that both familypreservation and family supportservices are developed within a State orIndian Tribe. While the statute does notdefine ‘‘significant,’’ the State’srationale will need to be especiallystrong if the request for eitherpercentage is below 25 percent.

Comment: While a number ofcommenters remarked positively on thissection, there were some opposingcomments. One commenterrecommended that rather than providethat ‘‘there is no minimum percentagebut a State’s rationale will need to bestrong if below 25 percent’’, we provideinstead, ‘‘There will be no minimumpercentage that defines significant. TheStates will provide the rationale forfunding allocation method.’’ Thecommenter was concerned that to insiston a specific percentage imposes a top-down insistence that may not beembraced positively in thecommunities.

Another commenter stated that therequirement that States indicate thespecific percentage of Federal funds theState would expend for community-based family support services and forfamily preservation services and arationale would be difficult if notimpossible to determine since manyservices can be considered both, such asthe State’s new home visiting program.Instead, the commenter asked that thestandard be revised to give the Stateflexibility in determining how best touse IV–B funds. One commenterindicated that they would not support

the inclusion of a minimum percentageto define significant portion of funds,stating that a planning process shouldbe a forum for reform rather than for‘‘dividing up the pie.’’

Response: We believe that thissection, of all the options considered,best represents the approach fordetermining ‘‘significant portion.’’ Webelieve we must provide some guidanceto States on meeting this requirement,while remaining committed toproviding maximum flexibility toaccommodate a wide range ofdifferences among States. While weunderstand that in some cases it may bedifficult to categorize certainprogrammatic expenditures as eitherfamily preservation or family supportservices, we see the joint planningprocess as the mechanism by whichStates, Tribes and Regional Offices canreach agreement on these matters. Wewill support all reasonabledeterminations made and are availableto provide technical assistance ifrequested.

Comment: One commenter wasconcerned about a perceived lack ofemphasis on primary prevention, statingthat while the child and family serviceplan is important, it may be difficult tocoalesce treatment and preventionagencies without losing hard foughtfocus on prevention initiatives. Thecommenter was concerned that the ruledid not provide guidance on thepercentage of funds to devote toprograms for family preservation andsupport and thought that without this,there may be less allocated to primaryprevention efforts.

Response: We believe that it isimportant to note that even the limitedfocus on prevention provided in thisrule is stronger than that addressedpreviously. We do not think itnecessary, or within our authority, toprovide restrictions on the percentage offunds for family support or familypreservation services. Paragraph (s) of§ 1357.15 requires States to include anexplanation of distribution of funds andrequires that States which spend lessthan 25 percent on family preservationor on family support have an especiallystrong rationale for the minimal fundinglevel.

Section 1357.15(t) Staff Training,Technical Assistance and Evaluation

States and Indian Tribes consistentlybuild staff expertise and organizationalcapacity for the design and delivery offamily preservation and family supportservices as well as conduct self-evaluations. We want to emphasize thatStates are not required to conduct


evaluations and/or research activitiesrelated to the CFSP.

Comment: A number of commentswere received on the general nature orspecific aspects of the training andtechnical assistance portion of the CFSPas presented in the NPRM.

Two respondents were pleased to seetraining and technical assistanceconceptualized as a program cost andnot viewed as an administrative cost.

One commenter wanted thesubsection strengthened by addinglanguage from the preamble dealingwith interdisciplinary training andcontinuous improvement.

Several respondents wanted standardsfor elements such as staffingqualifications, different types oftraining, training requirements, andcoordination.

A commenter was disappointed thatthe NPRM failed to present a specificmechanism to teach staff how to workeffectively within the new value base.

A few respondents perceived thepreamble of the NPRM asrecommending that the entire staff ofthe child welfare agency providingfamily preservation and family supportservices be trained and that specifictypes of training be proposed. Theywere concerned with what appeared tothem to be insufficient Federal funds tosupport this approach to T&TA and oneurged title IV–E training funds beallowed to be used.

Two commenters called for cross-disciplinary training.

Response: Although a number offocus group members convened to guideimplementation of the FamilyPreservation and Support ServicesProgram prior to the publication of theNPRM recommended training all childwelfare system staff, a decision has beenmade to not transform that request intoregulations. Decisions regarding thefacets of training and specific trainingcontent can only be made by each Stateor Indian Tribe based upon their CFSP.In response to concerns raised aboutinterdisciplinary training andcontinuous improvement, we added thefollowing language to § 1357.15(t)(1):‘‘Training must be an ongoing activityand must include content from variousdisciplines and knowledge basesrelevant to child and family services,policies, programs, and practices.Training content must also support thecross-system coordination consultationbasic to the development of the CFSP.’’

Training supported by various Federalfunding streams should be linkedtogether. The title IV–E training planmust be combined with the CFSPtraining plan submitted as part of thetitle IV–B plan to promote the

coordination of overall training and theintegration of training in support ofprogrammatic efforts. States and IndianTribes are encouraged to make title IV–E training as complementary to andsupportive of the CFSP as it can be. Atthe same time, title IV–E training has aunique focus and operates within aspecific statutory and regulatoryframework.

Comment: Several respondents eitherrequested clarity regarding what wasmeant by evaluation, or proposedspecific evaluation strategies to beincorporated into the rule.

A respondent requested additionalfunding support for evaluation.

One respondent felt the use of theterm ‘‘evaluation’’ in this subsectionwas confusing.

Three commenters supported Stateadministered evaluation efforts, self-evaluation practices tied to the uniquecircumstances each State or IndianTribe has to contend with, or front-endevaluation.

One commenter asked that voluntaryproviders be involved in the evaluationof the T&TA effort.

Response: Evaluation is extremelyimportant and although evaluation isnot required and extra funds are notprovided specifically, as indicated in§ 1357.15(t)(3), there is support for anyevaluation underway or planned in aState or Indian Tribe related to the goalsand objectives of the CFSP. In additionto State and/or Tribal activities, theDepartment is conducting nationalevaluations which will help informprofessional and policy audiences aboutthe effects of the services. The FamilyPreservation and Support ServicesProgram, title IV–B, subpart 2, remainsa capped entitlement program, and noadditional funds beyond the State orTribal yearly allocation are available.

Comment: One respondent called forthe inclusion of staff from voluntaryagencies in training.

Response: There will be no change inregulatory language because it would beinappropriate to regulate any specificgroup that must be involved in training.It is assumed that when voluntaryagencies are represented in the goalsand objectives set forth in the CFSP andactively involved in the implementationof the CFSP, they will, of necessity,have to participate in appropriatetraining.

Comment: Two respondents raisedcultural issues in relation to training.

One commenter urged that ICWAmandates and other American Indiancultural competence training materialsbe required for inclusion in trainingactivities.

A second commenter asked foreducation and billing ‘‘waivers’’ todevelop culturally sensitive providersfor specific groups.

Response: In § 1355.25(e) we affirmthe importance of cultural issues andfactors in the design and delivery ofchild and family services. It would notbe suitable to weave into the ruleparticular culturally-based items orresource materials that must beincluded in training. States which haveAmerican Indian or Alaskan Nativepopulations and Tribal governments orother culturally or linguistically diversepopulations will have the motivationand flexibility to develop and offerculturally relevant training. Also, sincestatutory provisions neither request norrequire specific providers for specificgroups, there is no basis for establishingregulations on the issue.

Section 1357.15(u) Quality AssuranceIn designing, expanding, and

implementing quality assuranceactivities, States and Indian Tribes maywish to refer to the principles in 45 CFR1355.25.

Comment: We received severalresponses to our request forrecommendations for modelapproaches, procedures and basicmeasures or measures of quality. Onecommenter urged that we continue togather information for purposes ofproviding guidance and technicalassistance to States but that qualityassurance systems not be used as ameasure of compliance with anyminimal Federal standards. Anothercommenter remarked that an HHSOffice of the Inspector General 1994Report recommended that ACF requireStates to have quality assuranceprograms in place that look at thequality of casework and servicesprovided, not just documentation ofprocedures.

The commenter recommended thatStates be required to spell out, at aminimum: Standards against which theywill assess the quality and effectivenessof services provided, how variousrequirements described in this rule willbe met, and procedures to discontinueservices that do not meet certainstandards of quality.

Response: We support thecommenter’s position that qualityassessment can provide information toallow more meaningful Federalguidance and technical assistance toStates. While this information will behelpful in determining compliance withFederal requirements, it will not serveas the sole tool for monitoringcompliance. We considered establishingminimum Federal standards for quality


services, but recognizing the variance inindividual State circumstances, wedetermined that States should haveflexibility to design their own qualityassurance systems.

Comment: One commenter asked thatwe strengthen the rule by includingsome examples of quality assessmenttechniques for cultural/linguisticcompetence.

Another commenter noted that therule allows virtually unlimiteddiscretion in designing a qualityassurance system but offered that anyeffective system would normally beexpected to include certain datacollection and assessment methods suchas case reading.

Response: We have decided not toexpand on the examples or requirementof quality assessment techniques givenin this rule to provide States withmaximum flexibility. These exampleswere given for illustrative purposes onlyand we believe that States would be inthe best position to design their ownquality assurance systems.

Comment: One commenter stated thatthe requirements of this section couldresult in the submission of voluminousamounts of data since the commenter’sState has an entire division responsiblefor quality assurance, performance/outcome measures.

The commenter suggested that thetime spent to prepare an adequatedescription to accompany the planwould be better spent on the processesrelated to the plan itself.

Response: The requirement of§ 1357.15(u) is that States submit adescription of the quality assurancesystem it will use, and not the dataproduced by that system. Since qualityimprovements are vital to child andfamily services, we are committed to theimportance of this requirement.

Section 1357.15(v) Distribution of theCFSP and the Annual Progress andServices Report

We believe it will be useful to Statesand Indian Tribes to share the CFSP andthe Annual Progress and ServicesReports, both with each other and withthose individuals, agencies, andorganizations which are a part of theongoing consultation and coordinationeffort. Such dissemination can lead toincreased support, knowledge andcoordination of services.

Comment: One commenter suggestedthat the final rule should require theCFSP and annual progress report bemade available to anyone upon requestand require States to provide for similaravailability of quality assurance data.The commenter further recommendedthat the grantee should be required to

document not only what it plans to doto accomplish its goals and objectivesbut also what it does not plan to do andwhy. For example, if a state decides tochannel all or most of its funding intoone or a limited number of servicescategories it should have to explainwhy.

Response: We agree that the annualprogress report must be available to thepublic. We will not, however, furtherspecify what a State or Indian Tribemust include in that review.

Section 1357.16 Annual Progress andServices Reports

Reports from States and Tribes will bekey to ongoing learning and growth inpractice of child and family services andthe ongoing planning andimplementation of child and familyservices. The reports from States andTribes will be used to update the State’sor Indian Tribe’s goals and objectives ofthe child and family services programs.

We have added in paragraph (b) therequirements for the submission of theCFS–101. The directions for submittingthe CFS–101 will vary depending uponwhere each State and eligible IndianTribe is in terms of consolidating titleIV–B, subparts 1 and 2, and the statusof each eligible Indian Tribe regardingtitle IV–B, subpart 1.

Comment: One commenter suggestedthat we call for an inclusive planningprocess by requiring that those involvedin the ongoing consultation andcoordination process be involved inannual reviews of a State’s activities andthat the Annual Progress and ServicesReport specify any revisions necessaryin goals, objectives, services or programdesign to reflect changed circumstances.

Response: We believe bothrecommendations are addressed inparagraph (a) of this section.

Comment: One commenter asked thatwe delete ‘‘review’’ from ‘‘Annualprogress reviews and services report’’for consistency with other references.

Response: We agree and have revisedthe wording of the section titleaccordingly.

Comment: Several commenterssuggested that we include a requirementthat the annual progress report explainwhat progress the State has madetoward service coordination. Anothercommenter asked that the annualprogress review and services report berequired to identify specificaccomplishments based on empiricaldata rather than personal andprofessional judgment andrecommended deleting the ‘‘e.g.’’ whichimplies that provided outcomes forchildren and families is merely anexample of a goal or objective.

Response: We agree with thesecommenters and we believe thatparagraph (a)(1) addresses the need fora requirement on the progress States andIndian Tribes have made toward servicecoordination for children and familiesand therefore have not made anychanges. We have also revised theparagraph by deleting the ‘‘e.g.’’

Section 1357.20 Child Abuse andNeglect Programs

This section clarifies the titles andrelevant citations of the Child Abuseand Neglect Program.

No comments were received on thissection.

Section 1357.30 State FiscalRequirements (Title IV–B, Subpart 1,Child Welfare Services)

In order to bring title IV–B, subpart 1onto the same schedule as that providedfor subpart 2, existing rules which haveproven to be unnecessarily confusing toand burdensome on States, have beenadjusted. We have deleted therequirement for an obligation periodand require instead that subpart 1 fundsmust be expended (liquidated) bySeptember 30 of the fiscal yearfollowing the fiscal year in which thefunds were awarded. This will mean anidentical expenditure period for fundsunder title IV–B, subparts 1 and 2, andthe independent living program. Asindicated previously, a conformingamendment was made in 45 CFR1355.30 to clarify that 45 CFR part 95,subpart A, is not applicable to titleIV–B programs.

In response to comments, a changewas made in § 1357.30(e), § 1357.32(d),§ 1357.40(d), and § 1357.42(g). We havedecided to allow the use of non-publicthird-party cash, donations and in-kindcontributions, in accordance with 45CFR 92.24 (see the discussion of in-kindin Part II of this preamble).

A technical deletion has been made toparagraph (a) reflecting a statutorychange discontinuing the transfer of titleIV–E foster care funds to title IV–B childwelfare services (Pub. L. 103–432).

Comment: One commenter wasconcerned that it will be problematic toobligate and liquidate funds in the timelimit if subpart 1 is fully funded.

Response: Once the States and IndianTribes submit their applications forsubparts 1 and 2 funds by June 30 therewill be a full two years to spend themoney.

Comment: One commenter asked ifStates will have to submit anapplication for funds for reallotment orwhether the Commissioner will reallotany available funds independently on


the basis of the amount originallyrequested in the annual budget request.

Response: Since requests forreallotment are rare we will not bechanging the rule on the process forreallotment. If funds become availablefor reallotment States will be notifiedand provided with instructions to applyfor those funds.

Section 1357.32 State FiscalRequirements (Title IV–B, Subpart 2,Family Preservation and FamilySupport Services)

In this section, we have definedadministrative costs as those costsassociated with auxiliary functions tosupport development andimplementation of the Child and FamilyServices Plan and Annual Progress andServices Report (e.g., procurement,payroll, personnel functions,management, maintenance, operation ofspace and property, data processing andcomputer services, accounting,budgeting, auditing, and indirect costs.)

We have also added a clarificationthat costs directly associated withimplementing the CFSP are notconsidered administrative costs (e.g.,delivery of services, planning,consultation, coordination, training,quality assurance measures, datacollection, evaluation, and supervision)and are considered program costs.

Comment: One commenter asked thatin paragraph (d)(2), a definition of theterm ‘‘donated funds’’ be provided.Another commenter recommended thatthe terminology, Federal, State, andlocal and private funds be used ratherthan Federal, State, local, and donated.This commenter went on to suggest thatwhen referring to cash versus non cash,that the term cash alone be used. Theterm donated can apply to cash or in-kind but should be used in referring tocontributions from third parties whichare not the Family Preservation andFamily Support grantee. The commentersuggested that the definition for cashand in-kind should be that found in 45CFR 92.3 for cash contributions andthird-party in-kind contributions.

Response: We are not providing adefinition, per se, of ‘‘donated funds’’ inthis rule but in response to thiscomment we clarify that the non-Federal match may be donated fundsand may be in kind contributions. Inaddition to the cite to 45 CFR 92.3provided by the commenter we wouldalso refer readers to 45 CFR 92.24 as anadditional reference on matching andcost sharing.

Comment: Two commenters statedthat they had been given guidance thatexisting State general revenueexpenditures for family preservation

and family support could be used tomeet the match requirement for serviceexpansion but were concerned that therule was not clear on whether this is, infact, permissible.

Response: Existing State generalrevenue expenditures can only be usedas match if they are newly devoted tofamily preservation and family supportpurposes.

Comment: Several commentersrecommended that non-Federal funds tomeet the non-supplantation requirementbe defined as State only, not local,public funds because of State difficultyin determining and collecting fiscalinformation from all local publicagencies providing family preservationand family support services.

Response: We agree and have revisedthe language in paragraph (f) by deletingthe reference to local public funds andhave defined ‘‘non-Federal funds’’ asState funds.

Comment: One commenter suggestedthat at the State level, an agency otherthan the IV–B agency should be treatedthe same as local public entities withrespect to maintenance of effortrequirements to assure separate recordsare kept that non-supplantation has notoccurred.

Response: While we are notaddressing the issue explicitly in thisrule, States have the authority to requireassurances of their subrecipients.

Comment: One commenter voicedconcern that the non-supplantationrequirements are vague and largelyunenforceable, since identification ofFY 1992 costs in many cases will beinfeasible as such costs were buried intitles IV–B, subpart 1; XX; IV–A EA;IV–A (administration) and State generalrevenue costs centers. The commenterrecommended that State non-supplantation should be limited to an‘‘assurance’’ and that definitiveinstructions should be developed as towhat should be reported for the annualreporting requirement.

Response: While non-supplantation isan assurance, back-up documentationmust still be maintained at the Statelevel for auditing purposes.

Comment: Several comments werereceived regarding the 10 percentlimitation on administrative costs.

One commenter suggested the limit beapplied only to the title IV–B/IV–Eagency and not the direct serviceprovider, otherwise the policy may havethe unintended consequence ofprohibiting small, community-basedagencies from participating in theinitiative.

Another commenter asked that thelimitation on administrative costs beincreased to 15 percent.

Several commenters were concernedthat the definition of administrativecosts is unworkable since it goes beyondexisting cost allocation procedures.Concern was voiced that to separatecosts as suggested would be very timeconsuming, and inclusion of the generalcategory of management in (ii) willmean that large portions of the cost ofcarrying out any such program will beineligible for Federal funds. It wassuggested that management be deletedfrom the list and a general definition ofadministrative expenditures based onexisting cost allocation procedures beused.

Another commenter recommendedthat administrative costs be defined asindirect and other non-program support,as allocable in accordance with theagency approved cost allocation plan.

Response: The 10 percentadministrative cost limitation is foundin the statute at § 432(a)(4) and cannotbe modified. In response to commentsthe 10 percent administrative costlimitation in paragraph (h) will beapplied only to the Federal share offunds.

We believe the definition ofadministrative costs is consistent withexisting regulations and procedures,including those governing agencyapproved cost allocation plans, andprovides States increased flexibility.

We would also like to clarify that‘‘administrative cost’’ and ‘‘programcost’’ are program relative terms whichdescribe how costs relate to specificprogram activities. The definition of anadministrative or programmatic costwill vary according to the nature of anindividual program. ‘‘Indirect costs’’and ‘‘direct costs’’ are generalaccounting terms which describe howcosts are allocated to a program oractivity budget. Program costs are costsof major functions such as delivery ofservices incurred in connection withdeveloping and implementing the CFSP.

Comment: One commenter suggestedthat States be required to provide anexplanation of how they will transferadministrative resources tocommunities.

Response: The distribution ofadministrative resources is undertakenat the discretion of the individual Stateand we are not making any changes tothe rule to require an explanation ofhow these resources are transferred tocommunities.

Comment: Two commenters askedthat a definition of subrecipient beincluded in the final rule.

Response: A definition of subrecipienthas not been added to this rule.‘‘Subrecipient,’’ as used in this finalrule, refers to a legal entity to which


funds have been awarded by a State orTribal grantee. The term is intended toreflect the various kinds of fundingrelationships (e.g., grants, contracts,interagency agreements, etc.,) whichmay exist between States/Indian Tribesand the agencies and organizations theyfund.

Section 1357.40 Direct Payments toIndian Tribal Organizations (Title IV–B,Subpart 1, Child Welfare Services)

Previously, Indian Tribes couldsubmit their title IV–B (subpart 1, childwelfare services) plan at one, two, orthree year intervals with annualupdates. We believe a five-year planwill not only reduce administrativeburden but will enable the Indian Tribeto deliver services in the context of aplan that includes both short-termobjectives and long-term goals,supported by consultation andcoordination activities, leading to morecoordinated and effective services.

As previously stated in section1357.15(q), section 427 of the Act wasrepealed by Pub. L. 103–432, effectiveOctober 1, 1996. The protectionsformerly embodied in section 427 arenow incorporated in section 422(b)(9) astitle IV–B Plan requirements.Department policy has been andcontinues to be that the State, asrequired by statute, is responsible forproviding these protections to allchildren, including Indian children.

Tribes that wish to receive directfunding under title IV–B, in accordancewith section 428 of the Act, are notrequired under current law orregulations to provide the protectionsthat were specified previously in section427 to receive direct funding. Theprovision of those protections is thelegal responsibility of the State.However, a Tribe, by arrangement withthe State, may choose to provide thoseprotections itself. As set forth in thefinal regulation, a Tribe that wishes toreceive direct funding under title IV–B,subpart 1, must include in its Plan adiscussion of the arrangements thathave been made with the State for theprotection of children in accordancewith section 422(b)(9). It is expectedthat the States will take the initiative tocontact all Tribes, if they have not doneso already, for the purpose of ensuringthat the 422(b)(9) protections areprovided to Indian children.

The NPRM, which was drafted priorto enactment of the Social SecurityAmendments of 1994, referred to thesection 422 provisions in their entiretyas a basis for direct funding of Tribes;now that the former section 427protections have been incorporated insection 422(b)(9), this is no longer

accurate. Accordingly, the final rule hasbeen corrected to make clear that, as isthe case under the current regulation,Tribes are not required to provide theprotections in section 422(b)(9) as acondition of receiving direct funding.

Comment: One commenter asked thatthe funding of Tribal consortia, whichmay serve more than one Tribe, beconsidered for funding.

Response: The NPRM sanctioned theeligibility of consortia. In order to makethis point clearer, the language in§ 1357.40 (a) and (b) has been modified.

Comment: Several respondentsaddressed either the content or durationof the plans to be submitted by IndianTribal Organizations.

One respondent wanted to make surethe Indian Tribe would say in its planhow its title IV–B, subpart 1, moneywould be used.

Another commenter stated that a five-year plan was preferable to a plan ofone, two or three years.

Response: The CFSP and the CFS–101submitted by Indian Tribes will detailhow title IV–B funds will be spent.There is a statutory basis for requiringfive-year plans.

Comment: One commenter requestedsubstituting the phrase ‘‘federallyrecognized Indian Tribe’’ for ‘‘IndianTribal Organization’’ to avoid anyconfusion or misinterpretation.

Response: There will be no change inlanguage because the respondent’srequest fails to consider a majordistinction between ‘‘Federallyrecognized Indian Tribe’’ and ‘‘IndianTribal Organization’’ (ITO) in relation totitle IV–B, subpart 1. Prevailing statuteand regulations grant Federallyrecognized Indian Tribes the authorityto delegate authority to an ITO forpurposes of securing title IV–B, subpart1 funds. Therefore, it is conceivable thatan Indian Tribe could have been givenauthority by a Federally recognizedIndian Tribe to obtain title IV–B,subpart 1 funds. Use of the term‘‘Federally recognized Indian Tribe’’ istoo restrictive because it eliminatespotential recipients of the title IV–B,subpart 1 funds.

Section 1357.50 Direct Payments toIndian Tribal Organizations (Title IV–B,Subpart 2, Family Preservation andFamily Support Services)

We have made several changes in thissection in response to comments, eventhough most comments weresupportive. Changes have been made inthe portions of this section dealing with(d) eligibility, (f) exemptions, and (g)matching.

In terms of eligibility, as described inPart II of this preamble, additional

Indian Tribes eligible for title IV–B,subpart 2 funding in FY 1996 andthereafter have been given in (d)(3), (4),and (5) a timeframe within which a five-year CFSP must be submitted that meetsall of the criteria in § 1357.15. Also in§ 1357.50(d)(5)(iii) Indian Tribes havebeen given the option of conductingplanning activities or providing servicesduring the first year in which the IndianTribe receives title IV–B, subpart 2funds.

In order to identify ‘‘the most currentand reliable information available,’’required by statute in the selection ofeligible Indian Tribes, we looked at thevarious sources of data available on thenumber of children in each Tribe,including children in the AlaskaRegional Corporations, to determine thedata set most reliable and valid. Weconcluded that the Census Bureaudata—rather than Tribal documentationor BIA labor force statistics—is the bestsource. Census data is more uniform,objective, and based on sample designand the use of scientific methodology.In addition, the Census Bureau datadefines ‘‘child’’ as a person from birthto age 20 while the BIA data defines achild as a person from birth to age 16.The Census Bureau also has data onchild population in all Alaska RegionalCorporations while the BIA has data ononly two Regional Corporations.

Comment: One commenter supportedthe exemption of certain statutoryrequirements for Indian Tribes.

Response: The statute grants theSecretary exemption authority forIndian Tribes from any inappropriaterequirements. We have provided threeexemptions of statutory requirements in§ 1357.50(f). They are: (1) 10%limitation on administrative costs; (2)the non-supplantation requirement; and(3) the requirement that a significantportion of funds must be used for familypreservation and family support. IndianTribes can make formal requests to ACFfor exemptions of any otherrequirements.

Comment: Two respondents dealtwith the match issue.

One commenter supported in-kindmatch for eligible Indian Tribes.

One respondent believed there shouldbe no matching requirement for IndianTribes.

Response: In § 1357.50(g) it is madeclear that non-public third party in-kindcontributions can be used toward thenon-Federal share. The rules governingmatch have been designed in such away that all eligible Indian Tribesshould have no problem meeting thematch requirements.

Comment: One commenter raisedconcern that the requirement to expend


all funds by September 30 of thefollowing fiscal year is not needed andis inconsistent with the Indian Self-Determination Act.

Response: The Indian Self-Determination Act applies only toprograms funded under that Act. Wemust adhere to the Social Security Act,section 434, in this case, which requiresthat all funds be expended by the closeof the fiscal year following that in whichfunds were awarded.

Executive Order 12866Executive Order 12866 requires that

regulations be drafted to ensure thatthey are consistent with the prioritiesand principles set forth in the ExecutiveOrder. The Department has determinedthat this rule is consistent with thesepriorities and principles. This finalrulemaking implements statutoryauthority for a broad consultation andcoordination process leading to thedevelopment of five-year child andfamily services plan.

The Executive Order also encouragesagencies, as appropriate, to provide thepublic with meaningful participation inthe regulatory process. As describedearlier in the preamble, ACF held focusgroup discussions with State, local, andTribal officials, and a broad range ofprivate nonprofit agencies,organizations, practitioners, researchers,parents, and others to obtain their viewson planning and implementation issuesfor this new title IV–B program.

The input received during theconsultation process on the new FamilyPreservation and Family SupportProgram was reflected in the NPRM.The vast majority of comments wereextremely supportive of the NPRM—theflexibility provided to State and localagencies, the emphasis on collaborationand coordination in order to bring aboutimproved outcomes for children andfamilies, and the focus group processemployed in the NPRM’s development.Commenters particularly supported therule’s joint planning and consultationprocess and the emphasis on a visionand principles of child and familyservices leading to more responsive,proactive systems of care. We believethat this rule reflects, to a considerabledegree, the recommendations of thefocus group participants and thecomments received in response to theNPRM.

Regulatory Flexibility AnalysisThe Regulatory Flexibility Act (5

U.S.C. Ch. 6) requires the Federalgovernment to anticipate and reduce theimpact of rules and paperworkrequirements on small businesses andother small entities. Small entities are

defined in the Act to include smallbusinesses, small non-profitorganizations, and small governmentalentities. This rule will affect only Statesand certain Indian Tribes. Therefore, theSecretary certifies that this rule will nothave a significant impact on asubstantial number of small entities.


This rule contains informationcollection activities which are subject toreview and approval by the Office ofManagement and Budget (OMB) underthe Paperwork Reduction Act of 1995.Under the Paperwork Reduction Act of1995, no persons are required torespond to a collection of informationunless it displays a valid OMB controlnumber. We will be seeking commentfrom the public on these informationcollection activities in a separateFederal Register notice in the nearfuture.

List of Subjects

45 CFR Part 1355

Adoption and foster care; Child abuseand neglect; Child and family services;Child welfare services; Data collection;Definitions—Grant Programs socialprograms; Family preservation andfamily support services.

45 CFR Part 1356

Adoption and foster care;Administrative costs; Child and familyservices; Child welfare services; Fiscalrequirements (title IV–E); GrantPrograms—Social programs;Independent living program; statewideinformation systems.

45 CFR Part 1357

Adoption and foster care; Child abuseand neglect; Child and family services;Child welfare services; Familypreservation and family supportservices; Independent living program.(Catalog of Federal Domestic AssistanceProgram No. 93.556—Family Preservationand Support Services; No 93.645—ChildWelfare Services—State Grants; No. 93.669—Child Abuse and Neglect—State Grants; andNo. 93–674—Independent Living)

Dated: March 22, 1996.Mary Jo Bane,Assistant Secretary for Children and Families.

Approved: July 30, 1996.Donna E. Shalala,Secretary.

For the reasons set forth in thepreamble, 45 CFR Chapter XIII isamended as follows:

1. Subchapter G is amended byrevising the heading to read as follows:

SUBCHAPTER G—THE ADMINISTRATIONON CHILDREN, YOUTH AND FAMILIES,FOSTER CARE MAINTENANCE PAYMENTS,ADOPTION ASSISTANCE, AND CHILD ANDFAMILY SERVICES

PART 1355—GENERAL


Authority: 42 U.S.C. 620 et seq., 42 U.S.C.670 et seq. and 42 U.S.C. 1301 and 1302.

3. Section 1355.10 is revised to readas follows:

§ 1355.10 Scope.Unless otherwise specified, part 1355

applies to States and Indian Tribes andcontains general requirements forFederal financial participation undertitles IV–B and IV–E of the SocialSecurity Act.

4. Section 1355.20(a) is amended byrevising four definitions and by addingone definition to read as follows:

§ 1355.20 Definitions.(a) * * *ACYF means the Administration on

Children, Youth and Families,Administration for Children andFamilies (ACF), U. S. Department ofHealth and Human Services.* * * * *

Commissioner means theCommissioner on Children, Youth andFamilies, Administration for Childrenand Families, U.S. Department of Healthand Human Services.* * * * *

Independent Living Program (ILP)means the programs and activitiesestablished and implemented by theState to assist youth, as defined insection 477(a)(2) of the Act, to prepareto live independently upon leavingfoster care. Programs and activities thatmay be provided are found in section477(d) of the Act.

State means, for title IV–B, the 50States, the District of Columbia, theCommonwealth of Puerto Rico, Guam,the Virgin Islands, the Commonwealthof the Northern Mariana Islands, andAmerican Samoa. For title IV–E, theterm ‘‘State’’ means the 50 States andthe District of Columbia.

State agency means the State agencyadministering or supervising theadministration of the title IV–B and titleIV–E State plans and the title XX socialservices block grant program. Anexception to this requirement ispermitted by section 103(d) of theAdoption Assistance and Child WelfareAct of 1980 (Pub. L. 96–272). Section103(d) provides that, if on December 1,1974, the title IV–B program (in a Stateor local agency) and the social services


program under section 402(a)(3) of theAct (the predecessor program to titleXX) were administered by separateagencies, that separate administration ofthe programs could continue at Stateoption.* * * * *

5. Section 1355.21(c) is revised toread as follows:

§ 1355.21 State plan requirements for titlesIV–B and IV–E.

* * * * *(c) The State agency and the Indian

Tribe must make available for publicreview and inspection the Child andFamily Services Plan (CFSP) and theAnnual Progress and Services Reports.(See 45 CFR 1357.15 and 1357.16.) TheState agency also must make availablefor public review and inspection thetitle IV–E State Plan.

6. A new section 1355.25 is added toread as follows:

§ 1355.25 Principles of child and familyservices.

The following principles, most oftenidentified by practitioners and others ashelping to assure effective services forchildren, youth, and families, shouldguide the States and Indian Tribes indeveloping, operating, and improvingthe continuum of child and familyservices.

(a) The safety and well-being ofchildren and of all family members isparamount. When safety can be assured,strengthening and preserving families isseen as the best way to promote thehealthy development of children. Oneimportant way to keep children safe isto stop violence in the family includingviolence against their mothers.

(b) Services are focused on the familyas a whole; service providers work withfamilies as partners in identifying andmeeting individual and family needs;family strengths are identified,enhanced, respected, and mobilized tohelp families solve the problems whichcompromise their functioning and well-being.

(c) Services promote the healthydevelopment of children and youth,promote permanency for all childrenand help prepare youth emancipatingfrom the foster care system for self-sufficiency and independent living.

(d) Services may focus on prevention,protection, or other short or long-terminterventions to meet the needs of thefamily and the best interests and needof the individual(s) who may be placedin out-of-home care.

(e) Services are timely, flexible,coordinated, and accessible to familiesand individuals, principally deliveredin the home or the community, and are

delivered in a manner that is respectfulof and builds on the strengths of thecommunity and cultural groups.

(f) Services are organized as acontinuum, designed to achievemeasurable outcomes, and are linked toa wide variety of supports and serviceswhich can be crucial to meetingfamilies’ and children’s needs, forexample, housing, substance abusetreatment, mental health, health,education, job training, child care, andinformal support networks.

(g) Most child and family services arecommunity-based, involve communityorganizations, parents and residents intheir design and delivery, and areaccountable to the community and theclient’s needs.

(h) Services are intensive enough andof sufficient duration to keep childrensafe and meet family needs. The actuallevel of intensity and length of timeneeded to ensure safety and assist thefamily may vary greatly betweenpreventive (family support) and crisisintervention services (familypreservation), based on the changingneeds of children and families atvarious times in their lives. A family oran individual does not need to be incrisis in order to receive services.


§ 1355.30 Other applicable regulations.Except as specified, the following

regulations are applicable to allprograms funded under titles IV–B andIV–E of the Act.

(a) 45 CFR Part 16—Procedures of theDepartmental Grant Appeals Board.

(b) 45 CFR Part 30—ClaimsCollection.

(c) 45 CFR Part 74—Administration ofGrants (Applicable only to title IV–Efoster care and adoption assistance,except that: (1) Section 74.23 CostSharing or Matching, and (2) section74.52 Financial ReportingRequirements, will not apply.)

(d) 45 CFR Part 76—GovernmentwideDebarment and Suspension(Nonprocurement) andGovernmentwide Requirements forDrug-Free Workplace (Grants).

(e) 45 CFR Part 80—Nondiscrimination Under ProgramsReceiving Federal Assistance Throughthe Department of Health and HumanServices Effectuation of Title VI of theCivil Rights Act of 1964.

(f) 45 CFR Part 81—Practice andProcedure for Hearings Under Part 80 ofThis Title.

(g) 45 CFR Part 84—Nondiscrimination on the Basis ofHandicap in Programs and ActivitiesReceiving Federal Financial Assistance.

(h) 45 CFR Part 91—Nondiscrimination on the Basis of Agein HHS Programs or Activities ReceivingFederal Financial Assistance.

(i) 45 CFR Part 92—UniformAdministrative Requirements for Grantsand Cooperative Agreements to Stateand Local Governments (Applicableonly to the title IV–B programs and theIndependent Living Program underSection 477 of the Act).

(j) 45 CFR Part 93—New Restrictionson Lobbying.

(k) 45 CFR Part 95—GeneralAdministration—Grant Programs(Public Assistance and MedicalAssistance). (Applicable to title IV–Band title IV–E except that,notwithstanding 45 CFR 95.1(a),Subpart A, Time Limits for States to FileClaims, does not apply to title IV–B(subparts 1 and 2) and the IndependentLiving Program.)

(l) 45 CFR Part 97—Consolidation ofGrants to the Insular Areas. (Applicableonly to the title IV–B programs).

(m) 45 CFR Part 100—Intergovernmental Review ofDepartment of Health and HumanServices Programs and Activities. (Onlyone section is applicable: 45 CFR100.12, How may a State simplify,consolidate, or substitute federallyrequired State plans?).

(n) 45 CFR Part 201—Grants to Statesfor Public Assistance Programs. Onlythe following sections are applicable:

(1) § 201.5—Grants. (Applicable totitle IV–E foster care and adoptionassistance only.)

(2) § 201.6—Withholding of payment;reduction of Federal financialparticipation in the costs of socialservices and training.

(3) § 201.7—Judicial review.(4) § 201.15—Deferral of claims for

Federal financial participation.(Applicable only to title IV–E foster careand adoption assistance.)

(5) § 201.66—Repayment of Federalfunds by installments. (Applicable onlyto title IV–E foster care and adoptionassistance.)

(o) 45 CFR Part 204.1—Submittal ofState Plans for Governor’s Review.

(p) 45 CFR Part 205—GeneralAdministration—Public AssistancePrograms. Only the following sectionsare applicable:

(1) § 205.5—Plan amendments.(2) § 205.10—Hearings.(3) § 205.50—Safeguarding

information for the financial assistanceprograms.

(4) § 205.100—Single State agency.


PART 1356—REQUIREMENTSAPPLICABLE TO TITLE IV–E

8. The authority citation for Part 1356continues to read as follows:

Authority: 42 U.S.C. 620 et seq., 42 U.S.C.670 et seq., and 42 U.S.C. 1302.


§ 1356.10 Scope.This part applies to State programs for

foster care maintenance payments,adoption assistance payments, relatedfoster care and adoption administrativeand training expenditures, and theindependent living services programunder title IV–E of the Act.

10. Section 1356.80 is added to part1356 to read as follows:

§ 1356.80 Independent Living Program(ILP).

(a) Scope. To receive payments undersection 477 of the Act, the State agencymust meet the applicable requirementsof sections 472, 474, 475, and 477 of theAct.

(b) Application requirements. Basedon section 477 of the Act, each Statemust submit an annual application forfunds under the Independent LivingProgram (ILP).

(c) Allotments. Payments to each Statewill be made in accordance with section477(e)(1) of the Act.

(d) Matching funds. (1) States areentitled to their share of the basicamount of $45 million of the ILPappropriation with no requirement formatching funds.

(2) States are required to match dollar-for-dollar any of the funds they receive,through additional or reallocated funds,over their share of the $45 million basicamount.

(3) The State’s contribution may be incash, donated funds, or third-party in-kind contributions.

(4) Matching contributions must befor costs otherwise allowable undersection 477 of the Act (e.g., matchingcontributions for the provision of roomand board are not allowable.)

(e) Reallocation of funds. Basic fundsand additional funds not requested by aState will be available for reallocation toother States under the provisions ofsection 477(e)(2) of the Act.

(f) Expenditure of funds. Section477(f)(3) of the Act requires that fundsmust be expended by September 30 ofthe fiscal year following the fiscal yearin which the funds were awarded.

(g) Maintenance of effort. Amountspayable under section 477 of the Actshall supplement and not replace:

(1) Title IV–E foster care fundsavailable for maintenance payments andadministrative and training costs; and

(2) Any other State funds available forindependent living activities andservices.

(h) Prohibition. ILP funds may not beused for room and board (section477(e)(3) of the Act).

PART 1357—REQUIREMENTSAPPLICABLE TO TITLE IV–B

11. The authority citation for part1357 continues to read as follows:

Authority: 42 U.S.C. 620 et seq., 42 U.S.C.670 et seq., and 42 U.S.C. 1302.


§ 1357.10 Scope and definitions.(a) Scope. This part applies to State

and Indian Tribal programs for childwelfare services under subpart 1, andfamily preservation and family supportservices under subpart 2 of title IV–B ofthe Act.

(b) Eligibility. Child and familyservices under title IV–B, subparts 1 and2, must be available on the basis of needfor services and must not be denied onthe basis of income or length ofresidence in the State or within theIndian Tribe’s jurisdiction.

(c) Definitions.Child and Family Services Plan

(CFSP) means the document, developedthrough joint planning, which describesthe publicly-funded State child andfamily services continuum (familysupport and family preservationservices; child welfare services,including child abuse and neglectprevention, intervention, and treatmentservices; services to supportreunification, adoption, kinship care,foster care, independent living, or otherpermanent living arrangements). ForIndian Tribes, the document describesthe child welfare and/or familypreservation and support services to beprovided by the Indian Tribe; includesgoals and objectives both for improvedoutcomes for the safety, permanencyand well-being of children and familiesand for service delivery system reform;specifies the services and otherimplementation activities that will beundertaken to carry out the goals andobjectives; and includes plans forprogram improvement and allocation ofresources.

Child welfare services means publicsocial services directed to accomplishthe following purposes:

(1) Protecting and promoting thewelfare and safety of all children,including individuals with disabilities;homeless, dependent, or neglectedchildren;

(2) Preventing or remedying, orassisting in the solution of problems

which may result in the neglect, abuse,exploitation, or delinquency of children;

(3) Preventing the unnecessaryseparation of children from theirfamilies by identifying family problemsand assisting families in resolving theirproblems and preventing the breakup ofthe family where the prevention of childremoval is desirable and possible;

(4) Restoring to their families childrenwho have been removed and may besafely returned, by the provision ofservices to the child and the family;

(5) Assuring adequate care of childrenaway from their homes, in cases wherethe child cannot be returned home orcannot be placed for adoption; and

(6) Placing children in suitableadoptive homes, in cases whererestoration to the biological family is notpossible or appropriate.

Children refers to individuals frombirth to the age of 21 (or such age ofmajority as provided under State law)including infants, children, youth,adolescents, and young adults.

Community-based services refers toprograms delivered in accessiblesettings in the community andresponsive to the needs of thecommunity and the individuals andfamilies residing therein. These servicesmay be provided under public or privatenonprofit auspices.

Families includes, but is not limitedto, biological, adoptive, foster, andextended families.

Family preservation services refers toservices for children and familiesdesigned to protect children from harmand help families (including foster,adoptive, and extended families) at riskor in crisis, including—

(1) Preplacement preventive servicesprograms, such as intensive familypreservation programs, designed to helpchildren at risk of foster care placementremain with their families, wherepossible;

(2) Service programs designed to helpchildren, where appropriate, return tofamilies from which they have beenremoved; or be placed for adoption,with a legal guardian, or, if adoption orlegal guardianship is determined not tobe appropriate for a child, in some otherplanned, permanent living arrangement;

(3) Service programs designed toprovide follow-up care to families towhom a child has been returned after afoster care placement;

(4) Respite care of children to providetemporary relief for parents and othercaregivers (including foster parents);

(5) Services designed to improveparenting skills (by reinforcing parents’confidence in their strengths, andhelping them to identify whereimprovement is needed and to obtain


assistance in improving those skills)with respect to matters such as childdevelopment, family budgeting, copingwith stress, health, and nutrition; and

(6) Case management servicesdesigned to stabilize families in crisissuch as transportation, assistance withhousing and utility payments, andaccess to adequate health care.

Family support services meanscommunity-based services to promotethe well-being of children and familiesdesigned to increase the strength andstability of families (including adoptive,foster, and extended families), toincrease parents’ confidence andcompetence in their parenting abilities,to afford children a stable andsupportive family environment, andotherwise to enhance childdevelopment. Family support servicesmay include:

(1) Services, including in-home visits,parent support groups, and otherprograms designed to improve parentingskills (by reinforcing parents’confidence in their strengths, andhelping them to identify whereimprovement is needed and to obtainassistance in improving those skills)with respect to matters such as childdevelopment, family budgeting, copingwith stress, health, and nutrition;

(2) Respite care of children to providetemporary relief for parents and othercaregivers;

(3) Structured activities involvingparents and children to strengthen theparent-child relationship;

(4) Drop-in centers to afford familiesopportunities for informal interactionwith other families and with programstaff;

(5) Transportation, information andreferral services to afford families accessto other community services, includingchild care, health care, nutritionprograms, adult education literacyprograms, legal services, and counselingand mentoring services; and

(6) Early developmental screening ofchildren to assess the needs of suchchildren, and assistance to families insecuring specific services to meet theseneeds.

Joint planning means an ongoingpartnership process between ACF andthe State and between ACF and anIndian Tribe in the development,review, analysis, and refinement and/orrevision of the State’s and the IndianTribe’s child and family services plan.Joint planning involves discussions,consultation, and negotiation betweenACF and the State or Indian Tribe in allareas of CFSP creation such as, but notlimited to, identifying the service needsof children, youth, and families;selecting the unmet service needs that

will be addressed; developing goals andobjectives that will result in improvingoutcomes for children and families;developing a plan to meet the matchingrequirements; and establishing a morecomprehensive, coordinated andeffective child and family servicesdelivery system. The expectation ofjoint planning is that both ACF and theState or Indian Tribe will reachagreement on substantive andprocedural matters related to the CFSP.


§ 1357.15 Comprehensive child and familyservices plan requirements.

(a) Scope. (1) The CFSP provides anopportunity to lay the groundwork for asystem of coordinated, integrated,culturally relevant family focusedservices. This section describes therequirements for the development,implementation and phase-in of thefive-year comprehensive child andfamily services plan (CFSP). The State’sCFSP must meet the requirements ofboth of the following programs. TheIndian Tribe’s CFSP must meet therequirements of one or both of thefollowing programs depending on theTribe’s eligibility:

(i) Child welfare services under titleIV–B, subpart 1; and

(ii) Family preservation and familysupport services under title IV–B,subpart 2.

(2) For States only, the CFSP alsomust contain information on thefollowing programs:

(i) The independent living programunder title IV–E, section 477 of the Act;and

(ii) The Child Abuse and Neglect Stategrant program (known as the Basic StateGrant) under the Child AbusePrevention and Treatment Act (CAPTA)(42 U.S.C. 5101 et. seq.).

(3) States must meet all requirementsof this section except those that applyonly to Indian Tribes. Indian Tribesmust meet the requirements of thissection only as specified.

(4) States and eligible Indian Tribeshave the option to phase-in therequirements for a consolidated CFSP.The consolidated CFSP requirementsmust be in place by June 30, 1997 andmeet the requirements of 45 CFR1357.16.

(b) Eligibility for funds. (1) In order toreceive funding under title IV–B,subparts 1 and 2, each State and eligibleIndian Tribe must submit and haveapproved a consolidated, five-year Childand Family Services Plan (CFSP) and aCFS–101, Budget Request and EstimatedExpenditure Report that meets therequirements under 45 CFR 1357.16.

(2) States and Indian Tribes that areconsolidating the requirements for aCFSP in FY 1995, in accordance with§ 1357.15(a), must submit the CFSP anda CFS–101 for FY 1995 and 1996 byJune 30, 1995.

(3) States and eligible Indian Tribeschoosing to phase-in the requirementsfor a consolidated CFSP in FY 1996 and1997 must submit the CFSP, the CFS–101 for FY 1995 for subpart 1 and 2, andthe CFS–101 for subpart 2 for FY 1996by June 30, 1995.

(4) The CFSP will be approved onlyif the plan was developed jointly byACF and the State (or the Indian Tribe),and only after broad consultation by theState (and the Indian Tribe) with a widerange of appropriate public and non-profit private agencies and community-based organizations with experience inadministering programs of services forchildren and families (including familypreservation and support services).

(5) By June 30, 1996, each granteemust submit and have approved the firstAnnual Progress and Services Reportand a CFS 101 for FY 1997 that meetsthe statutory and regulatoryrequirements of title IV–B, subparts 1and 2.

(6) The Annual Progress and ServicesReport will be approved if it wasdeveloped jointly by ACF and the State(or the Indian Tribe) and if it meets therequirements of 45 CFR 1357.16.

(7) The five-year CFSP for FYs 1995–1999 may be submitted in the format ofthe State’s or the Indian Tribe’s choiceand must be submitted no later thanJune 30, 1995, to the appropriate ACFRegional Office.

(c) Assurances. The followingassurances will remain in effect on anongoing basis and will need to be re-submitted only if a significant change inthe State or the Indian Tribe’s programaffects an assurance:

(1) The State or Indian Tribe mustassure that it will participate in anyevaluations the Secretary of HHS mayrequire.

(2) The State or Indian Tribe mustassure that it will administer the CFSPin accordance with methods determinedby the Secretary to be proper andefficient.

(3) The State or Indian Tribe mustassure that it has a plan for the trainingand use of paid paraprofessional staff,with particular emphasis on the full-time or part-time employment of low-income persons, as community serviceaides; and a plan for the use of nonpaidor partially paid volunteers in providingservices and in assisting any advisorycommittees established by the State orTribe.


(4) The State or Indian Tribe mustassure that standards and requirementsimposed with respect to child careunder title XX shall apply with respectto day care services, if provided underthe CFSP, except insofar as eligibilityfor such services is involved.

(d) The child and family services plan(CFSP): general. The State and theIndian Tribe must base the developmentof the CFSP on a planning process thatincludes:

(1) broad involvement andconsultation with a wide range ofappropriate public and non-profitprivate agencies and community-basedorganizations, parents, includingparents who are involved or haveexperience with the child welfaresystem, and others;

(2) coordination of the provision ofservices under the plan with otherFederal and federally assisted programsserving children and families, includingyouth and adolescents; and

(3) collection of existing or availableinformation to help determinevulnerable or at-risk populations ortarget areas; assess service needs andresources; identify gaps in services;select priorities for targeting fundingand services; formulate goals andobjectives; and develop opportunitiesfor bringing about more effective andaccessible services for children andfamilies.

(e) State agency administering theprograms. (1) The State’s CFSP mustidentify the name of the State agencythat will administer the title IV–Bprograms under the plan. Except asprovided by statute, the same agency isrequired to administer or supervise theadministration of all programs undertitles IV–B and IV–E of the Act and thesocial services block grant programunder title XX of the Act. (See thedefinition of ‘‘State agency’’ in 45 CFR1355.20.)

(2) The CFSP must include adescription of the organization andfunction of the State agency andorganizational charts as appropriate. Italso must identify the organizationalunit(s) within the State agencyresponsible for the operation andadministration of the CFSP, and includea description of the unit’s organizationand function and a copy of theorganizational chart(s).

(f) Indian Tribal organizationadministering the program(s). (1) TheIndian Tribe’s CFSP must provide thename of the Indian Tribal organization(ITO) designated to administer fundsunder title IV–B, subpart 1, childwelfare services and/or under subpart 2,family preservation and family supportservices. If the Indian Tribe receives

funds under both subparts, the sameagency or organization must administerboth programs.

(2) The Indian Tribe’s CFSP mustinclude a description of the organizationand function of the office responsiblefor the operation and administration ofthe CFSP, an organizational chart of thatoffice, and a description of how thatoffice relates to Tribal and other officesoperating or administering servicesprograms within the Indian Tribe’sservice area (e.g., Indian HealthService.)

(g) Vision Statement. The CFSP mustinclude a vision statement whicharticulates the grantee’s philosophy inproviding child and family services anddeveloping or improving a coordinatedservice delivery system. The visionshould reflect the service principles atsection 1355.25.

(h) Goals. The CFSP must specify thegoals, based on the vision statement,that will be accomplished during and bythe end of the five-year period of theplan. The goals must be expressed interms of improved outcomes for and thesafety, permanency and well-being ofchildren and families, and in terms of amore comprehensive, coordinated, andeffective child and family servicedelivery system.

(i) Objectives. (1) The CFSP mustinclude the realistic, specific,quantifiable and measurable objectivesthat will be undertaken to achieve eachgoal. Each objective should focus onoutcomes for children, youth, and/ortheir families or on elements of servicedelivery (such as quality) that are linkedto outcomes in important ways. Eachobjective should include both interimbenchmarks and a long-term timetable,as appropriate, for achieving theobjective.

(2) For States and Indian Tribesadministering the title IV–B, subpart 1program, the CFSP must includeobjectives to make progress in coveringadditional political subdivisions,reaching additional children in need ofservices, expanding and strengtheningthe range of existing services, anddeveloping new types of services.

(j) Measures of progress. The CFSPmust describe the methods to be used inmeasuring the results,accomplishments, and annual progresstoward meeting the goals and objectives,especially the outcomes for children,youth, and families. Processes andprocedures assuring the production ofvalid and reliable data and informationmust be specified. The data andinformation must be capable ofdetermining whether or not the interimbenchmarks and multiyear timetable for

accomplishing CFSP goals andobjectives are being met.

(k) Baseline information. (1) For FY1995, the State and the Indian Tribemust base the development of the CFSPvision, goals, objectives, and fundingand service decisions on an analysis ofavailable baseline information and anytrends over time on indicators in thefollowing areas: the well-being ofchildren and families; the needs ofchildren and families; the nature, scope,and adequacy of existing child andfamily and related social services.Additional and updated information onservice needs and organizationalcapacities must be obtained throughoutthe five-year period to measure progressin accomplishing the goals andobjectives cited in the CFSP. Adescription of how this process willcontinue to be carried out must beincluded in the CFSP, and any revisionsshould be provided in the AnnualProgress and Services Report.

(2) The State must collect and analyzeState-wide information on familypreservation and family supportservices currently available to familiesand children, including the nature andscope of existing public and privatelyfunded family support and familypreservation services; the extent towhich each service is available andbeing provided in different geographicareas and to different types of families;and important gaps in service, includingmismatches between available servicesand family needs as identified throughbaseline data and the consultationprocess. Other services which impact onthe ability to preserve and supportfamilies may be included in theassessment. The Indian Tribe mustcollect and analyze information onfamily preservation and family supportservices currently available within theirservice delivery area including theinformation in this paragraph asappropriate. An Indian Tribe maysubmit documentation prepared tosatisfy the requirements of other Federalchild welfare grants, or contracts (suchas the section 638 reporting form), alongwith a descriptive addendumaddressing specifically the familypreservation and family supportservices available.

(3) The CFSP must include asummary of the information used indeveloping the plan; an explanation ofhow this information and analysis wereused in developing the goals, objectives,and funding and service decisions,including decisions about geographictargeting and service mix; a descriptionof how information will be used tomeasure progress over the five-yearperiod; and how this information will


be used to facilitate the coordination ofservices.

(l) Consultation. (1) The State’s CFSPmust describe the internal and externalconsultation process used to obtainbroad and active involvement of majoractors across the entire spectrum of thechild and family service delivery systemin the development of the plan. Thedescription should explain how thisprocess was coordinated with or was apart of other planning processes in theState; how it led or will lead toimproved coordination of services.

(2) The Indian Tribe’s CFSP mustdescribe the consultation processappropriate to its needs andcircumstances used to obtain the activeinvolvement of major actors providingchild and family services within theTribe’s area of jurisdiction.

(3) For States and Indian Tribes, theconsultation process must involve:

(i) All appropriate offices andagencies within the State agency orwithin the Indian Tribal service deliverysystem (e.g., child protective services(CPS), foster care and adoption, thesocial services block grant, reunificationservices, independent living, and otherservices to youth;)

(ii) In a State-supervised, county-administered State, county socialservices and/or child welfare directorsor representatives of the county socialservices/child welfare administrators’association;

(iii) A wide array of State, local,Tribal, and community-based agenciesand organizations, both public andprivate nonprofit with experience inadministering programs of services forinfants, children, youth, adolescents,and families, including familypreservation and family supportservices;

(iv) Parents, including birth andadoptive parents, foster parents, familieswith a member with a disability,children both in and outside the childwelfare system, and consumers ofservices from diverse groups;

(v) For States, representatives ofIndian Tribes within the State;

(vi) For States, representatives of localgovernment (e.g., counties, cities, andother communities, neighborhoods, orareas where needs for services are great;)

(vii) Representatives of professionaland advocacy organizations (including,for example foundations and nationalresource centers with expertise to assistStates and Indian Tribes to design,expand, and improve the delivery ofservices); individual practitionersworking with children and families; thecourts; representatives or other States orIndian Tribes with experience inadministering family preservation and

family support services; andacademicians, especially those assistingthe child and family service agency withmanagement information systems,training curricula, and evaluations;

(viii) Representatives of State andlocal agencies administering Federaland federally assisted programs whichmay include: Head Start; the localeducation agency (school-linked socialservices, adult education and literacyprograms, Part H programs);developmental disabilities; nutritionservices (Food Stamps, SpecialSupplemental Food Program forWomen, Infants and Children (WIC));Title IV–A; runaway youth, youth gang,juvenile justice programs and youthresidential and training institutions;child care and development block grant(CCDBG) and respite care programs;domestic and community violenceprevention and services programs;housing programs; the health agency(substance abuse, Healthy Start,maternal and child health, Early andPeriodic Screening, Diagnosis, andTreatment (EPSDT), mental health, andpublic health nursing); lawenforcement; Children’s Trust Funds;Community-Based Family ResourcePrograms, and new Federal initiativessuch as the Empowerment Zones andEnterprise Communities Program; and

(ix) Administrators, supervisors andfront line workers (direct serviceproviders) of the State child and familyservices agency.

(4) The CFSP must describe theongoing consultation process that eachgrantee will use to ensure the continuedinvolvement of a wide range of majoractors in meeting the goals andobjectives over the five-year operationalperiod of the plan and developing theAnnual Progress and Services Report.

(m) Services coordination. (1) Statesmust include in the ongoingcoordination process representatives ofthe full range of child and familyservices provided by the State agency aswell as other service delivery systemsproviding social, health, education, andeconomic services (including mentalhealth, substance abuse, developmentaldisabilities, and housing) to improveaccess and deliver a range of services tochildren and their families.

(2) The State’s CFSP must describehow services under the plan will becoordinated over the five-year periodwith services or benefits under otherFederal or federally assisted programsserving the same populations to achievethe goals and objectives in the plan. Thedescription must include theparticipants in the process andexamples of how the process led or willlead to additional coordination of

services (e.g., integrated service models,improved accessibility, use of aconsolidated application or intake form,inter-disciplinary training, coordinatedcase management for several programs,pooled resources through blendedfinancing, shared information acrossservices providers and compatible andlinked automated information systems,co-location of several services orprograms.)

(3) The Indian Tribe must include inthe coordination process representativesof other Federal or federally assistedchild and family services or relatedprograms. The Indian Tribe’s CFSP mustdescribe how services under the planwill be coordinated over the five-yearperiod with services or benefits underother Federal or federally assistedprograms serving the same populationsto achieve the goals and objectives inthe plan. The descriptions must includethe participants in the process and anyexamples of how the process led or willlead to additional coordination ofservices.

(n) Services. (1) The State’s CFSPmust describe the publicly funded childand family services continuum: childwelfare services (including child abuseand neglect prevention, intervention,and treatment services; and foster care);family preservation services; familysupport services; and services tosupport reunification, adoption, kinshipcare, independent living, or otherpermanent living arrangements.

(2) The Indian Tribe’s CFSP mustdescribe the child welfare services(including child abuse and neglectprevention, intervention, treatmentservices and foster care) and/or thefamily support and family preservationservices to be provided.

(3) For each service described, theCFSP must include the followinginformation, or it must be listed on theCFS–101, Part II:

(i) The population(s) to be served;(ii) The geographic area(s) where the

services will be available;(iii) The estimated number of

individuals and/or families to be served;(iv) The estimated expenditures for

these services from Federal, State, local,and donated sources, including title IV–B, subparts 1 and 2, the CAPTA programreferenced in paragraph (a) of thissection, and the independent livingprogram.

(o) Family preservation and familysupport services and linkages to othersocial and health services. (1) TheState’s CFSP must explain how thefunds under title IV–B, subpart 2 of theAct, will be used to develop or expandfamily support and family preservationservices; how the family support and


family preservation services relate toexisting family support and familypreservation services; and how thesefamily support and preservationservices will be linked to other servicesin the child and family servicescontinuum.

(2) The State’s CFSP must explainwhether and/or how funds under theCAPTA and independent livingprograms are coordinated with andintegrated into the child and familyservices continuum described in theplan.

(3) The State’s CFSP must describethe existing or current linkages and thecoordination of services between theservices in the child and family servicescontinuum and the services in otherpublic services systems (e.g., health,education, housing, substance abuse,the courts), and other Federal and non-federally funded public and nonprofitprivate programs (e.g., Children’s TrustFunds, Community-Based FamilyResource Programs, privatefoundations.)

(p) Services in relation to serviceprinciples. The CFSP must describe howthe child and family services to beprovided are designed to assure thesafety and protection of children as wellas the preservation and support offamilies, and how they are or will bedesigned to be consistent with the otherservice principles in 45 CFR 1355.25.

(q) Services in relation to permanencyplanning. For States administering bothtitle IV–B programs (subparts 1 and 2),the CFSP must explain how theseservices will help meet the permanencyprovisions for children and families insections 422(b)(9) and 471 of the Act(e.g., preplacement preventive services,reunification services, independentliving services.) The CFSP mustdescribe the arrangements, jointlydeveloped with the Indian Tribes withinits borders, made for the provision ofthe child welfare services andprotections in section 422(b)(9) toIndian children under both State andTribal jurisdiction.

(r) Decision-making process: selectionof family support programs for funding.The State’s CFSP must include anexplanation of how agencies andorganizations were selected for fundingto provide family support services andhow these agencies and organizationsmeet the requirement that familysupport services be community-based.

(s) Significant portion of funds usedfor family support and familypreservation services. With each fiscalyear’s budget request, each State mustindicate the specific percentage offamily preservation and family supportfunds (title IV–B, subpart 2) that the

State will expend for community-basedfamily support and for familypreservation services, and the rationalefor the decision. The State must have anespecially strong rationale if the requestfor either percentage is below 25percent. It must also include anexplanation of how this distribution wasreached and why it meets therequirements that a ‘‘significantportion’’ of the service funds must bespent for each service. Examples ofimportant considerations might includethe nature of the planning efforts thatled to the decision, the level of existingState effort in each area, and theresulting need for new or expandedservices.

(t) Staff training, technical assistance,and evaluation. (1) The State’s CFSPmust include a staff development andtraining plan in support of the goals andobjectives in the CFSP which addressesboth of the title IV–B programs coveredby the plan. This training plan also mustbe combined with the training planunder title IV–E as required by 45 CFR1356.60(b)(2). Training must be an on-going activity and must include contentfrom various disciplines and knowledgebases relevant to child and familyservices policies, programs andpractices. Training content must alsosupport the cross-system coordinationconsultation basic to the development ofthe CFSP.

(2) The State’s CFSP must describethe technical assistance activities thatwill be undertaken in support of thegoals and objectives in the plan.

(3) The State’s CFSP must describeany evaluation and research activitiesunderway or planned with which theState agency is involved or participatingand which are related to the goals andobjectives in the plan.

(u) Quality assurance. The State mustinclude in the CFSP a description of thequality assurance system it will use toregularly assess the quality of servicesunder the CFSP and assure that therewill be measures to address identifiedproblems.

(v) Distribution of the CFSP and theannual progress and services report.The CFSP must include a description ofhow the State and the Indian Tribe willmake available to interested parties theCFSP and the Annual Progress andServices Report. (See 45 CFR 1355.21(c)and 45 CFR 1357.16(d)). State agenciesand Indian Tribal organizations withinthe State must exchange copies of theirCFSPs and their annual services reports.

14. A new § 1357.16 is added to readas follows:

§ 1357.16 Annual progress and servicesreports.

(a) Annual progress and servicesreports. Annually, each State and eachIndian Tribe must conduct an interimreview of the progress made in theprevious year toward accomplishing thegoals and objectives in the plan, basedon updated information. In developingparagraphs (a)(2) through (a)(4) of thissection, the State and the Indian Tribemust involve the agencies,organizations, and individuals who area part of the on-going CFSP-relatedconsultation and coordination process.On the basis of this review, each Stateand Indian Tribe must prepare andsubmit to ACF, and make available tothe public, an Annual Progress andServices Report which must include thefollowing—

(1) A report on the specificaccomplishments and progress made inthe past fiscal year toward meeting eachgoal and objective, including improvedoutcomes for children and families, anda more comprehensive, coordinated,effective child and family servicescontinuum;

(2) Any revisions in the statement ofgoals and objectives, or to the trainingplan, if necessary, to reflect changedcircumstances;

(3) For Indian Tribes, a description ofthe child welfare and/or familypreservation and family supportservices to be provided in the upcomingfiscal year highlighting any changes inservices or program design andincluding the information required in 45CFR 1357.15(n);

(4) For States, a description of thechild protective, child welfare, familypreservation, family support, andindependent living services to beprovided in the upcoming fiscal yearhighlighting any additions or changes inservices or program design andincluding the information required in 45CFR 1357.15(n);

(5) Information on activities in theareas of training, technical assistance,research, evaluation, or managementinformation systems that will be carriedout in the upcoming fiscal year insupport of the goals and objectives inthe plan;

(6) For States only, the informationrequired to meet the maintenance ofeffort (non-supplantation) requirementin section 432(a) (7) and (8) of the Act;

(7) For States and eligible IndianTribes phasing in requirements for aconsolidated CFSP, information onactivities and progress directed towarda consolidated plan by June 30, 1996 or1997. The report must includeinformation that demonstrates States’and eligible Indian Tribes’ progress


toward the consolidation of a CFSP,including activities that have beenaccomplished and still need to beaccomplished; and

(8) Any other information the State orthe Indian Tribe wishes to include.

(b) Submittal of the annual progressand services report and CFS–101. (1)The State and the Indian Tribe mustsend the Annual Progress and ServicesReport and the CFS–101 to theappropriate ACF Regional Office nolater than June 30 of the year prior to thefiscal year in which the services will beprovided (e.g., the report submitted andmade public by June 30, 1996 willdescribe the services to be provided inFY 1997. The report covering FY 1998services must be submitted by June 30,1997.)

(2) In order for States and eligibleIndian Tribes to receive title IV–B,subparts 1 and 2 allocations a CFS–101must be submitted for each fiscal year.

(3) States and Indian Tribes whichhave consolidated the requirements fortitle IV–B, subparts 1 and 2, mustsubmit the CFS–101 to the appropriateACF Regional Office no later than June30 of the year prior to the fiscal year inwhich the services will be provided(e.g., for FY 1997 allocations, the CFS–101 must be submitted by June 30, 1996;for FY 1998 allocations, the CFS–101must be submitted by June 30, 1997.)

(4) States and eligible Indian Tribeschoosing to phase-in the requirementsfor a consolidated CFSP must:

(i) Submit by June 30, 1996 a CFS–101for title IV–B, subpart 1 for FY 1996allocations; a CFS–101 for title IV–B,subpart 2 for FY 1997 allocations; and,if a State or eligible Indian Tribechooses, a CFS–101 for subpart 1 FY1997 allocations.

(ii) Submit by June 30, 1997 a CFS–101 for title IV–B, subpart 1 for FY 1997allocations, if not previously submittedby June 30, 1996; and a CFS–101 for FY1998 for subparts 1 and 2 allocations.

(c) Annual progress and servicesreports on FY 1994 family support andfamily preservation services. Each Stateand Indian Tribe that used FY 1994funds under title IV–B, subpart 2, forservices must describe in the CFSP whatservices were provided, thepopulation(s) served, and thegeographic areas where services wereavailable. The CFSP also must includethe amount of FY 1994 funds used forplanning, for family preservationservices, for family support services,and a brief statement on how theseservices met the service priorities of theState or the Indian Tribe.

(d) Availability of the annual progressand services report. The State and theIndian Tribe must make the Annual

Progress and Services Report availableto the public including the agencies,organizations, and individuals withwhich the State or the Indian Tribe iscoordinating services or consulting andto other interested members of thepublic. Each State and eligible IndianTribe within the State must exchangecopies of their Annual Progress andServices Reports.

(e) FY 1999 Final Review. In FY 1999,each State and eligible Indian Tribemust conduct a final review of progresstoward accomplishing the goals andobjectives in the plan. On the basis ofthe final review, it must—

(1) Prepare a final report on theprogress made toward accomplishingthe goals and objectives; and

(2) Send the final report to the ACFRegional Office and make it available tothe public.

(f) FY 2000 Five-Year State Plan.Based on the FY 1999 final review andfinal Annual Progress and ServicesReport, and in consultation with a broadrange of agencies, organizations, andindividuals, the States and eligibleIndian Tribes must develop a new five-year CFSP following the requirements of45 CFR 1357.15.


§ 1357.20 Child abuse and neglectprograms.

The State agency must assure that,with regard to any child abuse andneglect programs or projects fundedunder title IV–B of the Act, therequirements of section 106(b) (1) and(2) of the Child Abuse Prevention andTreatment Act, as amended, are met.These requirements relate to the Stateplan and assurances required for theChild Abuse and Neglect State GrantProgram.


§ 1357.30 State fiscal requirements (titleIV–B, subpart 1, child welfare services).

(a) Scope. The requirements of thissection shall apply to all funds allottedor reallotted to States under title IV–B,subpart 1.

(b) Allotments. Allotments for eachState shall be determined in accordancewith section 421 of the Act.

(c) Payments. Payments to States shallbe made in accordance with section 423of the Act.

(d) Enforcement and termination. Inthe event of a State’s failure to complywith the terms of the grant under titleIV–B, subpart 1, the provisions of 45CFR 92.43 and 92.44 will apply.

(e) Matching or cost-sharing. Federalfinancial participation is available only

if costs are incurred in implementingsections 422, 423, and 425 of the Act inaccordance with the grantsadministration requirements of 45 CFRpart 92 with the following conditions—

(1) The State’s contribution may be incash, donated funds, and non-publicthird party in-kind contributions.

(2) The total of Federal funds used forthe following purposes under title IV-B,subpart 1 may not exceed an amountequal to the FY 1979 Federal paymentunder title IV–B:

(i) Child day care necessary solelybecause of the employment, or trainingto prepare for employment, of a parentor other relative with whom the childinvolved is living, plus;

(ii) Foster care maintenancepayments, plus;

(iii) Adoption assistance payments.(3) Notwithstanding paragraph (e)(2)

of this section, State expendituresrequired to match the title IV–B, subpart1 allotment may include foster caremaintenance expenditures in anyamount.

(f) Prohibition against purchase orconstruction of facilities. Fundsawarded under title IV–B may not beused for the purchase or construction offacilities.

(g) Maintenance of effort. (1) A Statemay not receive an amount of Federalfunds under title IV–B in excess of theFederal payment made in FY 1979under title IV–B unless the State’s totalexpenditure of State and localappropriated funds for child welfareservices under title IV–B of the Act isequal to or greater than the total of theState’s expenditure from State and localappropriated funds used for similarcovered services and programs undertitle IV–B in FY 1979.

(2) In computing a State’s level ofexpenditures under this section in FY1979 and any subsequent fiscal year, thefollowing costs shall not be included—

(i) Expenditures and costs for childday care necessary to support theemployment of a parent or otherrelative;

(ii) Foster care maintenancepayments; and

(iii) Adoption assistance payments.(3) A State applying for an amount of

Federal funds under title IV–B greaterthan the amount of title IV–B, subpart1 funds received by that State in FY1979 shall certify:

(i) The amount of their expenditure inFY 1979 for child welfare services asdescribed in paragraphs (g) (1) and (2)of this section, and

(ii) The amount of State and localfunds that have been appropriated andare available for child welfare servicesas described in paragraphs (g) (1) and (2)


of this section for the fiscal year forwhich application for funds is beingmade. Records verifying the requiredcertification shall be maintained by theState and made available to theSecretary as necessary to confirmcompliance with this section.

(h) Reallotment. (1) When a Statecertifies to the Commissioner that fundsavailable to that State under its title IV–B, subpart 1 allotment will not berequired, those funds shall be availablefor reallotment to other States.

(2) When a State, after receivingnotice from the Commissioner of theavailability of funds, does not certify bya date fixed by the Commissioner thatit will be able to expend during theperiod stated in paragraph (i) of thissection all of the funds available to itunder its title IV–B, subpart 1 allotment,those funds shall be available forreallotment to other States.

(3) The Commissioner may reallotavailable funds to another State when itis determined that—

(i) The requesting State’s planrequires funds in excess of the State’soriginal allotment; and

(ii) the State will be able to expendthe additional funds during the periodstated in paragraph (i) of this section.

(i) Time limit on expenditures. Fundsunder title IV–B, subpart 1, must beexpended by September 30 of the fiscalyear following the fiscal year in whichthe funds were awarded.


§ 1357.32 State fiscal requirements (titleIV–B, subpart 2, family preservation andfamily support services).

(a) Scope. The requirements of thissection apply to all funds allocated toStates under title IV–B, subpart 2, of theAct.

(b) Allotments. The annual allotmentto each State shall be made inaccordance with section 433 of the Act.

(c) Payments. Payments to each Statewill be made in accordance with section434 of the Act.

(d) Matching or cost sharing. Fundsused to provide services in FY 1994 andin subsequent years will be federallyreimbursed at 75 percent of allowableexpenditures. (This is the same Federalfinancial participation rate as title IV–B,subpart 1.) Federal funds, however, willnot exceed the amount of the State’sallotment.

(1) The State’s contribution may be incash, donated funds, and non-publicthird party in-kind contributions.

(2) Except as provided by Federalstatute, other Federal funds may not beused to meet the matching requirement.

(e) Prohibition against purchase orconstruction of facilities. Funds

awarded under title IV–B may not beused for the purchase or construction offacilities.

(f) Maintenance of effort. States maynot use the Federal funds under title IV–B, subpart 2, to supplant Federal or non-Federal funds for existing familypreservation and family supportservices. For the purpose ofimplementing this requirement, ‘‘non-Federal funds’’ means State funds. ACFwill collect information annually fromeach State on expenditures for familysupport and family preservation usingthe State fiscal year 1992 as the baseyear.

(g) Time limits on expenditures.Funds must be expended by September30 of the fiscal year following the fiscalyear in which the funds were awarded.

(h) Administrative costs. (1) Statesclaiming Federal financial participationfor services provided in FY 1994 andsubsequent years may not claim morethan 10 percent of expenditures undersubpart 2 for administrative costs. Thereis no limit on the percentage ofadministrative costs which may bereported as State match.

(2) For the purposes of title IV–B,subpart 2, ‘‘administrative costs’’ arecosts of auxiliary functions as identifiedthrough as agency’s accounting systemwhich are:

(i) Allocable (in accordance with theagency’s approved cost allocation plan)to the title IV–B, subpart 2 program costcenters;

(ii) necessary to sustain the directeffort involved in administering theState plan for title IV–B, subpart 2, or anactivity providing service to theprogram: and

(iii) centralized in the granteedepartment or in some other agency,and may include but are not limited tothe following: Procurement; payroll;personnel functions; management,maintenance and operation of space andproperty; data processing and computerservices; accounting; budgeting;auditing.

(3) Program costs are costs, other thanadministrative costs, incurred inconnection with developing andimplementing the CFSP (e.g., delivery ofservices, planning, consultation,coordination, training, quality assurancemeasures, data collection, evaluations,supervision).


§ 1357.40 Direct payments to Indian TribalOrganizations (title IV–B, subpart 1, childwelfare services).

(a) Who may apply for direct funding?Any Indian Tribal Organization (ITO)that meets the definitions in section

428(c) of the Act, or any consortium orother group of eligible Tribalorganizations authorized by themembership of the Tribes to act forthem is eligible to apply for directfunding if the ITO, consortium or grouphas a plan for child welfare services thatis jointly developed by the ITO and theDepartment.

(b) Title IV–B Child and FamilyServices Plan (CFSP). (1) In order toreceive funds under title IV–B, subpart1, beginning in FY 1995, the IndianTribe or Tribal organization must havein effect an approved five-year child andfamily services plan that meets theapplicable requirements of § 1357.15 ofthis part.

(2) The Indian Tribe or Tribalorganization must also comply withsection 422(b)(1–8) of the Act; 45 CFRpart 1355 (except that the requirementsin § 1355.30 for a single Tribal agencyand Governor’s review of the CFSP donot apply); and other applicablerequirements of §§ 1357.10 and 1357.16.

(c) Information related to therequirements of Section 422(b)(9) of theAct. The following information must besubmitted with the assurances requiredto be eligible for title IV–B, subpart 1funds:

(1) A description of the arrangements,jointly developed with the State, madefor the provision of the child welfareservices and protections in section422(b)(9) to Indian children under bothState and Tribal jurisdiction;

(2) A statement of the legalresponsibility, if any, for children whoare in foster care on the reservation andthose awaiting adoption;

(3) A description of Tribal jurisdictionin civil and criminal matters, existenceor nonexistence of a Tribal court and thetype of court and codes, if any;

(4) An identification of the standardsfor foster family homes and institutionalcare and day care;

(5) The Indian Tribal organization’spolitical subdivisions, if any;

(6) Whether the Tribal organization iscontrolled, sanctioned or chartered bythe governing body of Indians to beserved and if so, documentation of thatfact;

(7) Any limitations on authoritiesgranted to the Indian Tribalorganizations; and

(8) The Tribal resolution(s)authorizing an application for a directtitle IV–B, subpart 1 grant under thisPart.

(d) Grants: General. (1) Grants may bemade to eligible Indian Tribalorganizations in a State which has ajointly developed child and familyservices plan approved and in effect.


(2) Federal funds made available for adirect grant to an eligible ITO shall bepaid by the Department, from the titleIV–B allotment for the State in whichthe ITO is located. Should a direct grantbe approved, the Department shallpromptly notify the State(s) affected.

(3) If an eligible ITO includespopulation from more than one State, aproportionate amount of the grant willbe paid from each State’s allotment.

(4) The receipt of title IV–B fundsmust be in addition to and not asubstitute for funds otherwisepreviously expended by the ITO forchild welfare services.

(5) The following fiscal andadministrative requirements apply toIndian Tribal grants under this section:

(i) Enforcement and termination. Inthe event of an Indian Tribe’s failure tocomply with the terms of the grantunder title IV–B, subpart 1, theprovisions of 45 CFR 92.43 and 92.44will apply.

(ii) Matching or cost-sharing. Federalfinancial participation is available onlyif costs are incurred in implementingsections 422, 423, and 425 of the Act inaccordance with the grantsadministration requirements of 45 CFRpart 92 with the following conditions—

(A) The ITO’s contribution may be incash, donated funds, and non-publicthird party in-kind contributions.

(B) The total of Federal funds used forthe following purposes under title IV–B,subpart 1 may not exceed an amountequal to the FY 1979 Federal paymentunder title IV–B:

(1) Child day care necessary solelybecause of the employment, or trainingto prepare for employment, of a parentor other relative with whom the childinvolved is living, plus;

(2) Foster care maintenance payments,plus;

(3) Adoption assistance payments.(C) Notwithstanding paragraph

(d)(5)(ii)(B) of this section, Tribalexpenditures required to match the titleIV–B, subpart 1 allotment may includefoster care maintenance expenditures inany amount.

(iii) Prohibition against purchase orconstruction of facilities. Fundsawarded under title IV–B may not beused for the purchase or construction offacilities.

(iv) Time limit on expenditures.Funds under title IV–B, subpart 1, mustbe expended by September 30 of thefiscal year following the fiscal year inwhich the funds were awarded.


§ 1357.50 Direct payments to Indian Tribalorganizations (title IV–B, subpart 2, familypreservation and support services).

(a) Definitions.Alaska Native Organization means

any organized group of Alaska Nativeseligible to operate a Federal programunder the Indian Self-Determination Act(Pub. L. 93–638) or such group’sdesignee as defined in section482(i)(7)(A) of the Act.

Indian Tribe means any Tribe, band,nation, or other organized group orcommunity of Indians that is recognizedas eligible for the special programs andservices provided by the United Statesto Indians because of their status asIndians; and for which a reservation(including Indian reservations, publicdomain Indian allotments, and formerIndian reservations in Oklahoma) exists.

Tribal organization means therecognized governing body of the IndianTribe.

(b) Eligibility for funds: FY 1994. (1)Section 432(b)(2) of the Act providesthat the Secretary may not approve aplan of an Indian Tribe whose FY 1995allotment under subpart 2 would be lessthan $10,000. Therefore, only thoseIndian Tribes whose FY 1995 allotmentis $10,000 or more are eligible to receivefunds beginning in FY 1994.

(2) ACF will pay any amount to whichan Indian Tribe is entitled to the Tribalorganization of the Indian Tribe.

(c) Eligibility for funds: FY 1995. Inorder to receive funds under title IV–B,subpart 2, in FY 1995, an Indian Tribethat is eligible for planning funds in FY1994 must submit a Child and FamilyServices Plan that meets the applicablerequirements in section 1357.15 of thisPart.

(d) Eligibility for funds: FY 1996through FY 1998. (1) ACF will makegrants to additional Indian Tribes in Fys1996 through 1998 in the event thatthere are increased appropriations.

(2) Allotments will be calculated inFys 1996, 1997, and 1998 as required insection 433 of the Act. Those IndianTribes in each year whose allotment isat least $10,000 will be notified of theireligibility to apply.

(3) In order to receive funds,additional Indian Tribes which becomeeligible for grants in FY 1996, 1997, and1998 must submit either a five yearChild and Family Services Plan (CFSP)that meets the applicable requirementsof 45 CFR 1357.15 or an application forplanning funds by June 30 of the yearin which they first become eligible forgrants. Those Indian Tribes whichsubmitted an application for planningfunds in their first year of funding mustsubmit a five year CFSP that meets theapplicable requirements of 45 CFR

1357.15 by June 30 of the second yearthey receive funding. For example, inorder to receive funds, an Indian Tribewhich becomes eligible to receivefunding beginning in FY 1996 mustsubmit either an application forplanning funds or a CFSP by June 30,1996. If the Indian Tribe submitted anapplication for planning funds in FY1996, they must submit a CFSP by June30, 1997.

(4) All Indian Tribes will be Federallyreimbursed at 75 percent of allowableexpenditures. Federal funds withoutmatch are available in the first year ofreceipt of funds for additional IndianTribes meeting the following criteria:

(i) Submittal of an application forplanning funds, and not a five yearCFSP;

(ii) Receipt of an initial award in FY1996 or 1997 or 1998; and

(iii) A proposal to spend the entiregrant in the first year on planning.

(e) Allotments. Allotments to IndianTribes are computed based on section433 of the Act and are based on a ratioof the number of children in each IndianTribe with an approved plan comparedto the number of children in all IndianTribes with approved plans, based onthe most current and reliable dataavailable.

(f) Exemptions of requirements. (1)ACF has exempted Indian Tribes fromthree statutory requirements:

(i) The limitation on administrativecosts to 10 percent of total Federal andTribal funds— Indian Tribes may usethe indirect cost rate agreement in effectfor the Tribe;

(ii) The requirement for maintenanceof effort that funds under this programmay not be used to supplant otherFederal and non-Federal funds; and

(iii) The requirement that a significantportion of funds must be used for bothfamily support and family preservationservices.

(2) Specific exemptions from otherstatutory requirements may be requestedby the Tribe in the course of its jointplanning. Such a request must containa compelling reason.

(g) Matching requirement. (1) Fundsused to provide services in FY 1994 andin subsequent years will be federallyreimbursed at 75 percent of allowableexpenditures. (This is the same Federalfinancial participation rate as title IV–B,subpart 1.) The Indian Tribe’s matchmust be at least 25 percent of the totalproject costs or one-third of the Federalshare. Federal funds, however, will notexceed the amount of the Indian Tribe’sallotment.

(2) The Indian Tribe’s contributionmay be in cash, donated funds, and non-public third party in-kind contributions.


(3) Indian Tribes, by statute, may usethe following three Federal sources offunds as matching funds: Indian ChildWelfare Act funds, Indian Self-Determination and EducationAssistance Act funds, and CommunityDevelopment Block Grant funds.

(h) Time limits on expenditures. AnIndian Tribe must expend all funds bySeptember 30 of the fiscal yearfollowing the fiscal year in which thefunds were awarded.

[FR Doc. 96–28937 Filed 11–15–96; 8:45 am]BILLING CODE 4184–01–P

DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 295

[Docket No. R–163]

RIN 2133–AB24

Maritime Security Program

AGENCY: Maritime Administration,Department of Transportation.ACTION: Extension of comment period oninterim final rule.

SUMMARY: Pursuant to the request of avessel operator, the Maritime

Administration (MARAD) is extendingthe period for commenting on itsinterim final rule for the MaritimeSecurity Program (MSP).DATES: Comments must be received onor before December 2, 1996.ADDRESSES: To be considered,comments must be mailed, delivered inperson or telefaxed (in which case anoriginal must subsequently beforwarded) to the Secretary, MaritimeAdministration, Room 7210,Department of Transportation, 400Seventh Street, SW, Washington, D.C.20590. All comments will be madeavailable for inspection during normalbusiness hours at the above address.Commenters wishing MARAD toacknowledge receipt of commentsshould enclose a stamped self-addressedenvelope or postcard.FOR FURTHER INFORMATION CONTACT:Raymond R. Barberesi, Director, Officeof Sealift Support, Telephone 202–366–2323.SUPPLEMENTARY INFORMATION: OnOctober 16, 1996, MARAD issued aninterim final rule providing proceduresto implement the MSP contained in theMaritime Security Act of 1996 (MSA),which was signed by the President onOctober 8, 1996. Section 2 of the MSA

amends Title VI of the Merchant MarineAct, 1936 (Act) and adds a new SubtitleB. It authorizes the MSP to provideassistance for U.S.-flag operators andvessels that meet certain qualifications.Participating vessel operators arerequired to make their ships and othercommercial resources available uponrequest by the Secretary of Defenseduring time of war or nationalemergency.

Sea-Land Services, Inc. has requestedan extension of the 30-day commentperiod expiring on November 15, 1996,Sea-Land submits that the requestedextension will allow the preparation ofmore deliberate comments to assistMARAD in fully implementing theprovisions of the MSA. It further statesthat the expedited pace of the MSPapplication process has left little time tofocus on assisting MARAD in thisimportant rulemaking process.

Accordingly, MARAD is extendingthe comment period until December 2,1996.

By Order of the Maritime Administrator.Dated: November 14, 1996.

Joel C. Richard,Secretary, Maritime Administration.[FR Doc. 96–29596 Filed 11–15–96; 8:45 am]BILLING CODE 4910–81–P

This section of the FEDERAL REGISTERcontains notices to the public of the proposedissuance of rules and regulations. Thepurpose of these notices is to give interestedpersons an opportunity to participate in therule making prior to the adoption of the finalrules.

Proposed Rules Federal Register

58664

Vol. 61, No. 223



Food Safety and Inspection Service

9 CFR Chapter III

[Docket No. 95–041N]

Withdrawal of Obsolete ProposedRules

AGENCY: Food Safety and InspectionService, USDA.ACTION: Notice of withdrawal.

SUMMARY: The Food Safety andInspection Service (FSIS) iswithdrawing a number of regulatoryproposed rules published in the FederalRegister at various times between 1969and 1993, but never promulgated asfinal rules. These proposed rules covera wide range of issues, includinglabeling, inspection operations, andadded substances. All have eitherbecome obsolete or have beensuperseded by other rulemakings.ADDRESSES: Send comments to: FSISDocket Clerk, DOCKET # 95–041N,Room 3806, 1400 IndependenceAvenue, SW, Washington, DC 20250–3700. Any comments received will beavailable for public inspection in theFSIS Docket Room from 8:30 a.m. to1:00 p.m. and from 2:00 p.m. to 4:30p.m., Monday through Friday.FOR FURTHER INFORMATION CONTACT: Dr.Paula M. Cohen, Director, RegulationsDevelopment, Policy, Evaluation andPlanning Staff; (202) 720–7164.SUPPLEMENTARY INFORMATION: FSIS is inthe process of conducting acomprehensive review of its regulatoryprocedures and requirements todetermine which are still needed andwhich should be modified, streamlined,or eliminated. This review is needed toprepare for the implementation of theAgency’s final rule, ‘‘PathogenReduction; Hazard Analysis and CriticalControl Point (HACCP) Systems’’ (61 FR38805, July 25, 1996) and FSIS’s newfood safety strategy. FSIS is revising itsregulations to reduce reliance oncommand-and-control regulations by

shifting, wherever possible, toperformance standards.

As part of its regulatory reforminitiative, FSIS examined proposedrules published over the last 25 years inthe Federal Register which, for a varietyof reasons, were never promulgated infinal form. These proposed rulescovered a wide range of issues,including labeling, inspectionoperations, and added substances. FSISdetermined that 45 of these proposalswere either superseded by otherrulemakings or obsolete under FSIS’snew food safety strategy and should bewithdrawn.

FSIS is officially withdrawing thefollowing proposed regulations:

1. ‘‘Inedible Animal Fats-Federal MeatInspection Regulation Requirements’’(1/16/69; 34 FR 207)

2. ‘‘Retail Meat Stores and Restaurantsin the District of Columbia’’ (2/12/69;Extended: 34 FR 15362)

3. ‘‘Reinspection and Preparation ofProduct’’ (2/21/69; 34 FR 2506)

4. ‘‘Labels of Meat Food Products-Proper Use of the term ‘FARM’ orSimilar Terms’’ (4/15/69; 34 FR 6538)

5. ‘‘Inspection of Poultry Products’’(5/27/72; 36 FR 9716)

6. ‘‘Reinspection and Preparation ofProducts’’ (2/4/70; 35 FR 2527)

7. ‘‘Meat Cuts and Chopped MeatProducts-Injection or Mixing of WaterBase Solutions’’ (10/8/70; 35 FR 15387)

8. ‘‘Overtime or Holiday InspectionService-Proposed Schedules ofOperations (12/12/72; 37 FR 26429)

9. ‘‘Inspection of Foreign Canned orPackaged Products’’ (4/23/73; 38 FR29215)

10. ‘‘Definition of Importation’’ (4/20/73, 38 FR 9829; 40 FR 42338)

11. ‘‘Requirements for Meat Pattiesand Meat Patty Mixes and SimilarArticles’’ (5/4/73; 48 FR 52697)

12. ‘‘Official Inspection Marks’’ (6/20/73; 38 FR 16077)

13. ‘‘Meatballs and Similar Products’’(7/13/73; 38 FR 18683)

14. ‘‘Labeling Policy for CuredProducts’’ (8/10/73; 38 FR 21648)

15. ‘‘Federally Inspected PoultryProducts-Labeling and Official Marks’’(6/20/74; Extended: 39 FR 22152)

16. ‘‘Certain Products with MeatIngredients’’ (10/2/73; 38 FR 27298)

17. ‘‘Meat Plant Quality ControlPrograms’’ (1974; Extended: 39 FR10914)

18. ‘‘Poultry Plant Quality ControlPrograms’’ (1974; Extended: 39 FR10914)

19. ‘‘Information Panel and NutritionLabeling’’ (1/11/74; 39 FR 1606)

20. ‘‘Dry Milk Products Intended forUse as Ingredients of Poultry FoodProducts’’ (2/1/74; 39 FR 4113)

21. ‘‘Interpretation of Term ‘Meat’ ’’(3/21/74; 39 FR 10598)

22. ‘‘Representations RegardingGeographical Origin’’ (11/27/74; 39 FR41318 and 42339)

23. ‘‘Oleo Stock and Edible Tallow’’(5/14/76; 41 FR 19971)

24. ‘‘Standards for Cooked PoultrySausages’’ (7/27/76; 41 FR 31226)

25. ‘‘Exemptions Based on ReligiousDietary Laws’’ (9/7/76; 41 FR 37592)

26. ‘‘Canning of Meat and PoultryProducts’’ (9/17/76; 41 FR 40156)

27. ‘‘Water in Poultry Chillers’’ (4/4/78; 43 FR 14043)

28. ‘‘Charges for Inspection for ExportCertification’’ (10/27/78; 43 FR 50188)

29. ‘‘Procedures for Prior LabelApproval’’ (2/26/80; 45 FR 12442)

30. ‘‘Bacon made with Dry CuringMaterials’’ (6/27/80; 45 FR 43425)

31. ‘‘Net Weight Labeling’’ (8/8/80; 45FR 53002)

32. ‘‘Sale, Transportation, andMarking of Meat and Meat FoodProducts’’ (7/31/81; 46 FR 39159)

33. ‘‘Reimbursement for Preparationand Cleanup Time’’ (5/7/82; 47 FR19701)

34. ‘‘Definitions and Standards ofIdentity or Composition for Misc. PorkProducts and Misc. Beef Products’’ (4/13/83; 48 FR 15927)

35. ‘‘Labeling for Meat and PoultryProducts with Cheese Substitutes;Revised Pizza Standard’’ (8/5/83; 48 FR35654)

36. ‘‘Transportation of InedibleProduct for Use as Animal Food’’ (8/8/83; 48 FR 35884)

37. ‘‘New Line Speed InspectionSystem for Broilers and Cornish Hens’’(1/20/84; 49 FR 2473)

38. ‘‘Total Plant Quality Control forLabeling’’ (9/25/85; 50 FR 38824)

39. ‘‘Disposal of Livestock Carcassesand Parts Condemned for BiologicalResidues’’ (6/8/87; 52 FR 21561)

40. ‘‘Control of Added Substances andLabeling Requirements for Turkey HamProducts’’ (2/21/89; 54 FR 7434)

41. ‘‘Additional Methods forDestroying Trichinae’’ (4/20/89; 54 FR15946)

42. ‘‘Ante-Mortem Inspection ofDisabled Animals and Other AnimalsUnable to Move on Transport Vehicles’’(10/22/89; 55 FR 42578)

58665Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Proposed Rules

43. ‘‘Preventing Cross-Contaminationof Meat Products Heat-Processed to 130Degrees F. or Higher and PoultryProducts Processed to 155 Degrees F. orHigher by Other Products not SimilarlyHeat Processed’’ (8/14/91; 56 FR 40274)

44. ‘‘Streamlined Inspection System-Cattle and Staffing Standards’’ (11/30/88; 53 FR 48262)

45. ‘‘Policy for DifferentiatingBetween Calves and Adult Cattle’’ (8/27/93; 58 FR 45296)

Comments regarding the withdrawl ofthese proposed rules should be sent tothe FSIS Docket Clerk (see ADDRESSES).If needed, FSIS will publish anothernotice addressing any commentsreceived.

Done at Washington, DC on November 12,1996.Thomas J. Billy,Administrator.[FR Doc. 96–29448 Filed 11–15–96; 8:45 am]BILLING CODE 3410–DM–P


Federal Aviation Administration

14 CFR Part 25

[Docket No. NM–134; Notice No. SC–96–7–NM]

Special Conditions: Empresa Brasileirade Aeronautica S.A., (EMBRAER)Model EMB–145 Airplane; ThrustReverser Systems

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Notice of proposed specialconditions.

SUMMARY: This notice proposes specialconditions for the Empresa Brasileira deAeronautica S.A., (EMBRAER) ModelEMB–145 airplane. This airplane willhave a novel or unusual design featureassociated with thrust reversers asoptional equipment. This noticecontains the additional safety standardswhich the Administrator considersnecessary to establish a level of safetyequivalent to that established by theairworthiness standards of Part 25 of theFederal Aviation Regulations (FAR).DATES: Comments must be received onor before January 2, 1997.ADDRESSES: Comments on this proposalmay be mailed in duplicate to: FederalAviation Administration, Office of theAssistant Chief Counsel, Attention:Rules Docket (ANM–7), Docket No.NM–134, 1601 Lind Avenue SW,Renton, Washington 98055–4056; ordelivered in duplicate to the Office ofthe Assistant Chief Counsel at the above

address. Comments must be marked:Docket No. NM–134. Comments may beinspected in the Rules Docketweekdays, except Federal holidays,between 7:30 a.m. and 4:00 p.m.FOR FURTHER INFORMATION CONTACT:Colin Fender, FAA, Flight Test andSystems Branch of the TransportStandards Staff, ANM–111, TransportAirplane Directorate, AircraftCertification Service, 1601 Lind AvenueSW, Renton, Washington 98055–4056;telephone 206–227–2191.


Comments InvitedInterested persons are invited to

participate in the making of theseproposed special conditions bysubmitting such written data, views, orarguments as they may desire.Communications should identify theregulatory docket or notice number andbe submitted in duplicate to the addressspecified above. All communicationsreceived on or before the closing datefor comments will be considered by theAdministrator before further rulemakingaction on this proposal is taken. Theproposals contained in this notice maybe changed in light of the commentsreceived. All comments received will beavailable, both before and after theclosing date for comments, in the RulesDocket for examination by interestedparties. A report summarizing eachsubstantive public contact with FAApersonnel concerning this rulemakingwill be filed in the docket. Commenterswishing the FAA to acknowledgereceipt of their comments submitted inresponse to this notice must include aself-addressed, stamped postcard onwhich the following statement is made:‘‘Comments to Docket No. NM–134.’’The postcard will be date/time stampedand returned to the commenter.

BackgroundEMBRAER first made application for

a US Type Certificate for the ModelEMB–145 on August 30, 1989, to theFAA Atlanta Aircraft CertificationOffice through the Brazilian CentroTecnico Aeroespacial (CTA). On June 2,1992, EMBRAER filed for an extensionof that application. The EMB–145 is a50 passenger, pressurized, low-winged,‘‘T’’ tailed, transport category airplanewith retractable tricycle type landinggear. The airplane is powered by twoAllison Model AE3007A high bypassratio turbofan engines mounted on theaft fuselage, which are controlled by aFull Authority Digital Engine Control(FADEC). The cockpit will include acomplete set of Electronic FlightInstrumentation and Engine Indication

and Crew Alerting Systems (EFIS andEICAS).

EMBRAER has proposed to certificateand market the EMB–145 with thrustreversers as optional equipment. Thrustreversers have been shown to play asignificant role in reducing accelerate-stop distances on wet and contaminatedrunways and have contributed to thetransport category airplane fleet’saccelerate-stop safety record.

The establishment of the transportcategory airplane safety record, withregard to accelerate-stop and landingoverruns, is tied to the availability ofauxiliary braking means that areindependent of wheel-brake, tire, andrunway surface interaction. On earlytransport category airplanes withpropellers driven by reciprocatingengines or turbine power plants,auxiliary braking was provided bycommanding the propellers to a reversepitch position, causing a deceleration,rather than acceleration, of air throughthe propeller disk. Due to the largediameter of the propellers, this wasquite an effective braking means.Though these early transport did nothave the high operating speeds oftoday’s jet fleet, they also did not benefitfrom the sophisticated wheel-brakeantiskid systems available today. Asrunway friction conditions degrade tothose associated with a surface coveredby ice, even today’s antiskid systemswill provide little in the way of stoppingforce. As runway friction conditionsdegrade, the braking contribution ofreverse pitch systems increaseconsiderably.

As the first generation turbojet-powered transport category airplaneswent into service in the latter half of the1950s, thrust reverser systems weredeveloped to provide this same type ofauxiliary braking as reverse pitchpropellers by reversing the engineexhaust flow. As powerplant technologyevolved and low bypass ratio turbofanengines entered commercial service inthe early 1960’s, thrust reversers weredeveloped to reverse both the fan andcore exhaust flows, thus maintaining theavailability of auxiliary braking. Withthe advent of large high bypass ratioturbofan engines in the late 1960s, manythrust reverser systems reversed the fanexhaust flow only, which provided asubstantial auxiliary braking effect dueto the majority of the total inlet flowgoing through the fan section.Numerous test programs, by bothresearch organizations and aerospacemanufacturers, have substantiated theincreased stopping benefit provided bythrust reversers as runway surfacefriction conditions deteriorate.

58666 Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Proposed Rules

The vast majority of jet-poweredtransport category airplanes in servicehave been of the large, passengercarrying variety. Research shows thatwith the exception of a very limitednumber of airplane types, some ofwhich had considerably slower takeoffand landing speeds than theircounterparts, all these large, passengercarrying, turbojet/turbofan-poweredtransports included thrust reversersystems as part of their basic design(i.e., as standard equipment). The lastsuch aircraft certified without thrustreversers as part of the basic design wasthe British Aerospace 146 (BAE 146) in1983. When the sheer numericalmajority of these large transports iscombined with their high-use operatingenvironment, often requiring takeoffsand landings to be made on slipperyrunway surfaces, it is clear that thrustreversers must have played a role inestablishing their excellent safetyrecord.

It should also be noted that as thenumber of small transport categoryairplanes in service has increased,notably corporate jets and regionalairliners, there has been an increasingtendency for these airplanes to beequipped with some type of thrustreversing system. Nearly all the regionalairliners are turbopropeller-poweredwith reverse pitch capability, and anincreasing number of corporate jetsinclude thrust reversers as standardequipment.

The accelerate-stop and landingdistances presented in the FAAapproved Airplane Flight Manual(AFM) are determined frommeasurements of the various influentialparameters taken during certificationflight tests. These flight tests areaccomplished by FAA test pilots (ormanufacturers’ Designated EngineeringRepresentative (DER) test pilots) undercontrolled conditions on dry runways.In the operational environment, even ondry runways, the ability of an airplaneto match the AFM accelerate-stopperformance is based on many factors,including the correct and timelyexecution of procedures by the pilot andmaximum stopping performance beingavailable from the wheel brakingsystem. As runway surface conditionsdegrade to wet, contaminated, or icy,the accompanying reduction inavailable friction will result in anincrease in stopping distances, causingthe wet runway accelerate-stopdistances to exceed the dry runwayaccelerate-stop distances published inthe AFM. Obviously, if the takeoff’srunway length-limited as determinedfrom the dry runway AFM accelerate-stop distances, and the runway surface

is anything but dry, the probability foran overrun accident is increasedsignificantly. (This increased risk factoris acknowledged for the landingscenario in Part 121 of the FAR, theoperating rules for air carriers andcommercial operators of large aircraft,which requires an increase in thelanding field length required forlandings on wet runways.)

In the operating conditions describedabove, any additional braking means,such as thrust reversers, will bebeneficial. This is particularly true sincethe braking contribution of reversethrust increases as runway surfacefriction decreases. This inverserelationship between reverse thrustbraking contribution and runwaysurface friction is further enhanced asground speed increases.

Since 1990 the Transport AirplaneDirectorate (TAD) has been developingnew Part 25 accelerate-stop criteria thatincludes accountability for thedegradation in stopping force due to wetrunway surfaces. Test results obtainedfrom several research organizationsshowed a fixed stopping distance factorof two, relative to dry runway stoppingdistances, to be representative of whatcould be expected in normal operations.The proposed accelerate-stop standards,published as Notice of ProposedRulemaking (NPRM) 93–8, assumed asimilar degradation in braking byprescribing a wet/dry braking coefficientof friction ratio of one-half (i.e.,µWET=0.5 µDRY) as the primary basisfor calculating wet runway accelerate-stop distances. An integral part of theproposed wet runway accelerate-stoprule is credit for the amount of reversethrust available (provided certainreliability and controllability criteria aremet).

The accelerate-stop certification basisfor the EMB–145 is § 25.109 of the FARas amended by Amendment 25–42,effective March 1, 1978. Thrustreversing systems are not required bythe FAR, and when installed, noperformance credit is granted for theiravailability in the dry runwayaccelerate-stop distances required by§ 25.109, as amended by Amendment25–42, effective March 1, 1978. Thisairworthiness regulation only addressesdry runway performance and does notrequire thrust reversers or giveperformance credit for their availability.The vast majority of transport categoryairplanes in service at the time theregulatory changes of Amendment 25–42 were promulgated were equippedwith thrust reversers. Consequently, thecertification of transport categoryairplanes intended to be operated inPart 121-type commercial service

without thrust reversers was notenvisaged at the time Amendment 25–42 was promulgated.

In consideration of the intendedoperation of the EMB–145, the FAAconsiders the non inclusion of thrustreversers into the basic airplane to be anunusual design feature that is notadequately addressed by theairworthiness regulations of Part 25 ofthe FAR and therefore proposes to applya special condition to the EMB–145 inaccordance with § 21.16 of the FAR. Inaccordance with the preamble materialto Amendment 25–54 (page 274),addressing the definition of a novel orunusual design feature (as used in§ 21.16), the non inclusion of thrustreversers in the basic EMB–145 designcan be considered a ‘‘novel or unusualdesign feature since such designs werenot envisaged at the time the currentairworthiness standard (i.e., § 25.109,Amendment 25–42) was developed.This application requires thedevelopment of requirements not fullyaddressed by Part 25 nor by anypublished FAA guidance.

These special conditions provide allthe necessary requirements to determineacceptability of the EMB–145 withoutthe incorporation of thrust reversers.

Type Certification Basis

Under the provisions of § 21.101,Empresa Brasileira de Aeronautica S.A.,must show that the Model EMB–145meets the applicable regulations ineffect on the date of application for theModel EMB–145. In addition, thecertification basis includes certain otherspecial conditions not relevant to thisproposed special condition.

In addition, if the regulationsincorporated by reference do notprovide adequate standards will respectto the change, the applicant mustcomply with certain regulations in effecton the date of application for thechange. The FAA has determined thatthe Model EMB–145 airplane must alsobe shown to comply with Part 25 asamended by Amendments 25–1 through25–75.

If the Administrator finds that theapplicable airworthiness regulations(i.e., Part 25 as amended) do not containadequate or appropriate safety standardsfor the Model EMB–145 because of anovel or unusual design feature, specialconditions are prescribed under theprovisions of § 21.16.

Special conditions, as appropriate, areissued in accordance with § 11.49 of theFAR after public notice, as required by§§ 11.28 and 11.29(b), and become partof the type certification basis inaccordance with § 21.101(b)(2).


In addition to the applicableairworthiness regulation and specialcondition, the Model EMB–145 mustcomply with the fuel vent and exhaustemission requirements of Part 25 andthe noise certification requirements ofPart 36.

Special conditions are initiallyapplicable to the model for which theyare issued. Should the type certificatefor that model be amended later toinclude any other model thatincorporates the same novel or unusualdesign feature the same novel orunusual design feature, the specialconditions would also apply to the othermodel under the provisions of§ 21.101(a)(1).

Novel or Unusual Design FeaturesThe Model EMB–145 will have an

unusual design feature which is the lackof incorporation of thrust reversers asstandard equipment.

As described above, these specialconditions are applicable to the EMB–145. Should Empresa Brasileira deAeronautica S.A. apply at a later datefor a change to the type of certificate toinclude another model incorporating thesame novel or unusual design feature,the special conditions would apply tothat model as well under the provisionsof § 21.101(a)(1).

ConclusionThis action affects only certain novel

or unusual design features on one modelof airplane. It is not a rule of generalapplicability, and it affects only themanufacturer who applied to the FAAfor approval of these features on theairplane.

List of Subjects in 14 CFR Part 25Air Transportation, Aircraft, Aviation

safety, Safety.The authority citation for these

special conditions continues to read asfollows:

Authority: 49 U.S.C. 106(g), 40113, 44701–44702, 44704.

The Proposed Special ConditionsAccordingly, the Federal Aviation

Administration (FAA) proposes thefollowing special conditions as part ofthe type certification basis for theEmpresa Brasileira de Aeronautica S.A.,Model EMB–145 airplanes.

1. Require Embraer to account for theeffect of wet runway surfaces onaccelerate-stop distances for the ModelEMB–145 in accordance with criteriacontained in NPRM 93–8 and itsassociated guidance.

2. Takeoff limitations for operation ofthe EMB–145 on wet runway surfacesmust be predicted on the wet runwayaccelerate-stop criteria contained inNPRM93–8.

Issued in Renton, Washington, onNovember 7, 1996.Darrell M. Pederson,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service,ANM–100.[FR Doc. 96–29481 Filed 11–15–96; 8:45 am]BILLING CODE 4910–13–M

14 CFR Part 39[Docket No. 96–NM–52–AD]

RIN 2120–AA64

Airworthiness Directives; BoeingModel 747 Series Airplanes

AGENCY: Federal AviationAdministration, DOT.ACTION: Notice of proposed rulemaking(NPRM).

SUMMARY: This document proposes theadoption of a new airworthinessdirective (AD) that is applicable tocertain Boeing Model 747 seriesairplanes. This proposal would requirea one-time inspection to detectcorrosion and cracking of the upperdeck floor beam at station 980, andrepair, if necessary. This proposal isprompted by reports of extensivecorrosion found at station 980. Analysisof the corrosion indicated that fatiguecracking of the floor beam at this areacould occur and cause the beam tobreak. The actions specified by theproposed AD are intended to detect andcorrect such corrosion and/or cracking,which could cause the floor beam tobreak and result in extensive damage toadjacent structure and possible rapiddecompression of the airplane.DATES: Comments must be received byDecember 30, 1996.ADDRESSES: Submit comments intriplicate to the Federal AviationAdministration (FAA), TransportAirplane Directorate, ANM–103,Attention: Rules Docket No. 96–NM–52–AD, 1601 Lind Avenue, SW.,Renton, Washington 98055–4056.Comments may be inspected at thislocation between 9:00 a.m. and 3:00p.m., Monday through Friday, exceptFederal holidays.

The service information referenced inthe proposed rule may be obtained fromBoeing Commercial Airplane Group,P.O. Box 3707, Seattle, Washington98124–2207. This information may beexamined at the FAA, TransportAirplane Directorate, 1601 LindAvenue, SW., Renton, Washington.FOR FURTHER INFORMATION CONTACT: BobBreneman, Aerospace Engineer,Airframe Branch, ANM–120S, FAA,Seattle Aircraft Certification Office,1601 Lind Avenue, SW., Renton,

Washington; telephone (206) 227–2776;fax (206) 227–1181.


Comments Invited

Interested persons are invited toparticipate in the making of theproposed rule by submitting suchwritten data, views, or arguments asthey may desire. Communications shallidentify the Rules Docket number andbe submitted in triplicate to the addressspecified above. All communicationsreceived on or before the closing datefor comments, specified above, will beconsidered before taking action on theproposed rule. The proposals containedin this notice may be changed in lightof the comments received.

Comments are specifically invited onthe overall regulatory, economic,environmental, and energy aspects ofthe proposed rule. All commentssubmitted will be available, both beforeand after the closing date for comments,in the Rules Docket for examination byinterested persons. A reportsummarizing each FAA-public contactconcerned with the substance of thisproposal will be filed in the RulesDocket.

Commenters wishing the FAA toacknowledge receipt of their commentssubmitted in response to this noticemust submit a self-addressed, stampedpostcard on which the followingstatement is made: ‘‘Comments toDocket Number 96–NM–52–AD.’’ Thepostcard will be date stamped andreturned to the commenter.

Availability of NPRMs

Any person may obtain a copy of thisNPRM by submitting a request to theFAA, Transport Airplane Directorate,ANM–103, Attention: Rules Docket No.96–NM–52–AD, 1601 Lind Avenue,SW., Renton, Washington 98055–4056.

Discussion

The FAA has received reports ofcorrosion found under the thresholdattached to the floor beam at the cart liftcutout in the upper deck floor at station980 on several Boeing Model 747–300and –400 series airplanes. The corrosionoccurred where the stainless steelthreshold contacts the aluminum floorstructure. Analysis of an extensivelycorroded section of the station 980 floorbeam, which had been removed from a7-year old Model 747–400 seriesairplane, revealed that fatigue crackingcould initiate at the corroded area andcould propagate. The analysis furtherindicated that the floor beam couldbreak at approximately 1,500 flightcycles after cracking was initiated. At


this time, the FAA has not received anyreports of cracking of the floor beam dueto corrosion at station 980. However,such corrosion and potential cracking, ifnot detected and corrected in a timelymanner, could cause the upper deckfloor beam at station 980 to break, andwould result in extensive damage toadjacent structure and possible rapiddecompression of the airplane.

Similar Models Subject to the UnsafeCondition

Upper deck cart lifts installed atstation 980 on Boeing Model 747–300and –400 series airplanes are identicalto those cart lifts installed at station 980on other Model 747 series airplanes;therefore, all of these models may besubject to this same unsafe condition.

Explanation of Relevant ServiceInformation

The FAA has reviewed and approvedBoeing Alert Service Bulletin 747–53A2400, dated December 21, 1995,which describes procedures for a one-time detailed visual inspection to detectcorrosion and/or fatigue cracking of theupper deck floor beam at station 980with the cart lift threshold removed, andrepair, if necessary. For older airplanes,the alert service bulletin describesalternative procedures that include adetailed visual inspection to detectcorrosion and/or fatigue cracking of theupper deck floor beam at station 980with the cart lift threshold installed,followed later by a detailed visualinspection with the cart lift thresholdremoved; and repair, if necessary.

Explanation of Requirements ofProposed Rule

Since an unsafe condition has beenidentified that is likely to exist ordevelop on other products of this sametype design, the proposed AD wouldrequire a one-time detailed visualinspection to detect corrosion and/orfatigue cracking of the upper deck floorbeam at station 980 with the cart liftthreshold removed, and repair, ifnecessary. The proposed AD also wouldprovide an alternative inspectionmethod for older airplanes, whichincludes a detailed visual inspection todetect corrosion and/or fatigue crackingof the upper deck floor beam at station980 with the cart lift threshold installed,followed later by an inspection with thecart lift threshold removed, and repair,if necessary. The actions would berequired to be accomplished inaccordance with the alert servicebulletin described previously.

Difference Between the Proposed ADand Referenced Service Bulletin

Operators should note that BoeingAlert Service Bulletin 747–53A2400,dated December 21, 1995, advises that,if an operator has performed themodification work and has appliedsealant under the cart lift threshold asspecified in Boeing Service Bulletin747–53–2327, the inspection describedin Boeing Alert Service Bulletin 747–53A2400 is not necessary. However, theFAA has determined that BoeingService Bulletin 747–53–2327 does notprovide adequate instructions to applysealant under the threshold. Therefore,the FAA does not consider theaccomplishment of Boeing ServiceBulletin 747–53–2327 to be analternative to the requirements of thisproposed AD.

Cost Impact

There are approximately 195 Model747 series airplanes of the affecteddesign in the worldwide fleet. The FAAestimates that 28 airplanes of U.S.registry would be affected by thisproposed AD, that it would takeapproximately 19 work hours perairplane to accomplish the proposedactions, and that the average labor rateis $60 per work hour. Based on thesefigures, the cost impact of the proposedAD on U.S. operators is estimated to be$31,920, or $1,140 per airplane.

The cost impact figure discussedabove is based on assumptions that nooperator has yet accomplished any ofthe proposed requirements of this ADaction, and that no operator wouldaccomplish those actions in the future ifthis AD were not adopted.

Regulatory Impact

The regulations proposed hereinwould not have substantial direct effectson the States, on the relationshipbetween the national government andthe States, or on the distribution ofpower and responsibilities among thevarious levels of government. Therefore,in accordance with Executive Order12612, it is determined that thisproposal would not have sufficientfederalism implications to warrant thepreparation of a Federalism Assessment.

For the reasons discussed above, Icertify that this proposed regulation (1)is not a ‘‘significant regulatory action’’under Executive Order 12866; (2) is nota ‘‘significant rule’’ under the DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3) ifpromulgated, will not have a significanteconomic impact, positive or negative,on a substantial number of small entitiesunder the criteria of the Regulatory

Flexibility Act. A copy of the draftregulatory evaluation prepared for thisaction is contained in the Rules Docket.A copy of it may be obtained bycontacting the Rules Docket at thelocation provided under the captionADDRESSES.


Air transportation, Aircraft, Aviationsafety, Safety.

The Proposed Amendment

Accordingly, pursuant to theauthority delegated to me by theAdministrator, the Federal AviationAdministration proposes to amend part39 of the Federal Aviation Regulations(14 CFR part 39) as follows:

PART 39—AIRWORTHINESSDIRECTIVES


Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended byadding the following new airworthinessdirective:Boeing: Docket 96–NM–52–AD.

Applicability: Model 747–300 and –400series airplanes having line numbers up toand including 843, and Model 747 seriesairplanes modified to a stretched upper deckconfiguration; on which an upper deck cartlift has been installed at station 980;certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenotherwise modified, altered, or repaired inthe area subject to the requirements of thisAD. For airplanes that have been modified,altered, or repaired so that the performanceof the requirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (d) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.

Compliance: Required as indicated, unlessaccomplished previously.

To detect and correct corrosion andconsequent fatigue cracking of the upperdeck floor beam at station 980, which couldcause the floor beam to break and,consequently, result in extensive damage toadjacent structure and possible rapiddecompression of the airplane; accomplishthe following:

(a) Perform a one-time detailed visualinspection to detect corrosion and/or fatiguecracking of the upper deck floor beam atstation 980 with the cart lift thresholdremoved, in accordance with Boeing AlertService Bulletin 747–53A2400, dated


December 21, 1995, at the time specified inparagraph (a)(1), (a)(2), or (a)(3) of this AD,as applicable.

Note 2: Boeing Alert Service Bulletin 747–53A2400, dated December 21, 1995, specifiesthat the inspection described in the alertservice bulletin need not be accomplished onairplanes on which the actions described inBoeing Service Bulletin 747–53–2327 havebeen accomplished. However, this ADrequires that the inspection described in thealert service bulletin be accomplishedregardless of accomplishment of the actionsspecified in Boeing Service Bulletin 747–53–2327. Where there are differences betweenthis AD and the alert service bulletin, therequirements of the AD prevails.

(1) For airplanes that, as of the effectivedate of this AD, have accumulated less than6 years since date of delivery of the airplaneor since installation of a stretched upper deck(SUD): Accomplish the inspection at the laterof the times specified in paragraphs (a)(1)(i)and (a)(1)(ii) of this AD.

(i) Within 6 years since date of delivery ofthe airplane or since installation of a SUD,whichever occurs first. Or

(ii) Within 1,500 flight cycles after theeffective date of this AD.

(2) For airplanes that, as of the effectivedate of this AD, have accumulated 6 or moreyears, but less than 10 years, since date ofdelivery of the airplane or since installationof a SUD: Accomplish the inspection within1,500 flight cycles or 18 months after theeffective date of this AD, whichever occursfirst.

(3) For airplanes that, as of the effectivedate of this AD, have accumulated 10 or moreyears of service since the time of initialdelivery, or since the time of installation ofthe SUD: Except as provided by paragraph (c)of this AD, accomplish the inspection within9 months or within 750 flight cycles after theeffective date of this AD, whichever occursfirst.

(b) If any corrosion or cracking is detectedduring the inspection required by paragraph(a) of this AD: Prior to further flight, repairthe corrosion and/or cracking, and applysealant between the threshold and the upperdeck floor beam at station 980, in accordancewith Boeing Alert Service Bulletin 747–53A2400, dated December 21, 1995.

(c) For airplanes that, as of the effectivedate of this AD, have accumulated 10 or moreyears of service since the time of initialdelivery, or 10 or more years of service sincethe installation of a SUD: In lieu ofaccomplishing the requirements of paragraph(a) of this AD, within 9 months after theeffective date of this AD, perform a one-timedetailed visual inspection to detect corrosionof the upper deck floor beam at station 980with the cart lift threshold installed, inaccordance with Boeing Alert ServiceBulletin 747–53A2400, dated December 21,1995.

(1) If no corrosion or cracking is detected:Within 18 months or 1,500 flight cycles afterthe effective date of this AD, whicheveroccurs first, remove the cart lift thresholdand perform a visual inspection to detect anycorrosion or cracking of the upper deck floorbeam at station 980. If any corrosion orcracking is detected, prior to further flight,

repair the corrosion and/or cracking, andapply sealant between the threshold and theupper deck floor beam at station 980; inaccordance with the alert service bulletin.

(2) If any corrosion or cracking is detected:Prior to further flight, remove the cart liftthreshold and perform a detailed visualinspection to detect any corrosion or crackingof the upper deck floor beam at station 980;repair any corrosion and/or crackingdetected; and apply sealant between thethreshold and the upper deck floor beam atstation 980; in accordance with the alertservice bulletin.

(d) An alternative method of compliance oradjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager, SeattleAircraft Certification Office (ACO), FAA,Transport Airplane Directorate. Operatorsshall submit their requests through anappropriate FAA Principal MaintenanceInspector, who may add comments and thensend it to the Manager, Seattle ACO.

Note 3: Information concerning theexistence of approved alternative methods ofcompliance with this AD, if any, may beobtained from the Seattle ACO.

(e) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.

Issued in Renton, Washington, onNovember 8, 1996.Darrell M. Pederson,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 96–29418 Filed 11–15–96; 8:45 am]BILLING CODE 4910–13–U

14 CFR Part 39

[Docket No. 96–NM–71–AD]

RIN 2120–AA64

Airworthiness Directives; BoeingModel 747–200, –300, and –400 SeriesAirplanes

AGENCY: Federal AviationAdministration, DOT.ACTION: Notice of proposed rulemaking(NPRM).

SUMMARY: This document proposes theadoption of a new airworthinessdirective (AD) that is applicable tocertain Boeing Model 747–200, –300,and –400 series airplanes. This proposalwould require repetitive inspections todetect cracking of the front spar web ofthe center section of the wing, andrepair, if necessary. This proposal isprompted by reports of fatigue crackingfound in the front spar web. The actionsspecified by the proposed AD areintended to prevent the leakage of fuelinto the forward cargo bay, as a resultof fatigue cracking in the front spar web,

which could result in a potential firehazard.DATES: Comments must be received byDecember 30, 1996.ADDRESSES: Submit comments intriplicate to the Federal AviationAdministration (FAA), TransportAirplane Directorate, ANM–103,Attention: Rules Docket No. 96–NM–71–AD, 1601 Lind Avenue, SW.,Renton, Washington 98055–4056.Comments may be inspected at thislocation between 9:00 a.m. and 3:00p.m., Monday through Friday, exceptFederal holidays.

The service information referenced inthe proposed rule may be obtained fromBoeing Commercial Airplane Group,P.O. Box 3707, Seattle, Washington98124–2207. This information may beexamined at the FAA, TransportAirplane Directorate, 1601 LindAvenue, SW., Renton, Washington.FOR FURTHER INFORMATION CONTACT:Tamara Dow, Aerospace Engineer,Airframe Branch, ANM–120S, FAA,Seattle Aircraft Certification Office,1601 Lind Avenue, SW., Renton,Washington; telephone (206) 227–2771;fax (206) 227–1181.


Comments InvitedInterested persons are invited to

participate in the making of theproposed rule by submitting suchwritten data, views, or arguments asthey may desire. Communications shallidentify the Rules Docket number andbe submitted in triplicate to the addressspecified above. All communicationsreceived on or before the closing datefor comments, specified above, will beconsidered before taking action on theproposed rule. The proposals containedin this notice may be changed in lightof the comments received.

Comments are specifically invited onthe overall regulatory, economic,environmental, and energy aspects ofthe proposed rule. All commentssubmitted will be available, both beforeand after the closing date for comments,in the Rules Docket for examination byinterested persons. A reportsummarizing each FAA-public contactconcerned with the substance of thisproposal will be filed in the RulesDocket.

Commenters wishing the FAA toacknowledge receipt of their commentssubmitted in response to this noticemust submit a self-addressed, stampedpostcard on which the followingstatement is made: ‘‘Comments toDocket Number 96–NM–71–AD.’’ Thepostcard will be date stamped andreturned to the commenter.


Availability of NPRMsAny person may obtain a copy of this

NPRM by submitting a request to theFAA, Transport Airplane Directorate,ANM–103, Attention: Rules Docket No.96–NM–71–AD, 1601 Lind Avenue,SW., Renton, Washington 98055–4056.

DiscussionThe FAA has received reports

indicating that fatigue cracks have beenfound on several Boeing Model 747–100series airplanes in the front spar web ofthe center section of the wing. Twooperators reported cracks at the tangentpoint of the pocket fillet radius runningvertically along the edge of the webstiffener. One crack was found whiletroubleshooting a whistling sound in thecabin that occurred during flight. Thesecracks were detected on airplanes thathad accumulated between 13,932 and24,264 total landings, and between27,080 and 37,625 total hours time-in-service.

The manufacturer evaluated trimmedsections of webs that contained cracks.This evaluation revealed that the cracks,which were propagated by fatigue,originated at the tangent point of thepocket fillet radius on the forwardsurface, spread aft through the thicknessof the web, and then radiated vertically.

Because fuel on Model 747–200, -300,and -400 series airplanes is locatedbehind the front spar web, fuel couldleak through these cracks into theforward cargo bay. This leakage, if notcorrected, could result in a potential firehazard.

Explanation of Relevant ServiceInformation

The FAA has reviewed and approvedBoeing Alert Service Bulletin 747–57A2298 Revision 1, dated September12, 1996, which describes proceduresfor conducting repetitive high frequencyeddy current (HFEC) inspections todetect cracking of the front spar webalong the tangent point of the pocketfillet radii. It also describes proceduresfor repairing any cracking that is foundduring an inspection. Additionally, theservice bulletin describes procedures foran optional HFEC inspection to confirmcracking, and repair if cracking isconfirmed.

Explanation of Requirements ofProposed AD

Since an unsafe condition has beenidentified that is likely to exist ordevelop on other products of this sametype design, the proposed AD wouldrequire repetitive HFEC inspections todetect cracking of the front spar webalong the tangent point of the pocketfillet radii., and repair, if necessary.

These inspections and certain repairswould be required to be performed inaccordance with the alert servicebulletin described previously. Otherrepairs would be required to beaccomplished in accordance with amethod approved by the FAA.

The proposed AD also would requirethat certain operators report initialinspection results, positive or negative,to the FAA. Due to a lack of informationabout the extent of cracking in the frontspar web of airplanes that haveaccumulated less than 18,000 totallandings, this information is needed todetermine, among other things, howwidespread this occurrence might beamong airplanes in this category, thetotal number of accumulated landingswhen initial cracking may be occurring,the size of cracking, and otherconditions that may contribute tocracking or its propagation.

Interim ActionThis proposal is considered to be

interim action until final action isidentified, at which time the FAA mayconsider further rulemaking.

Explanation of Applicability ofProposed AD

This proposed AD would beapplicable only to Boeing Model 747–200, –300, and –400 series airplanes.

Model 747–100, 747SR, and 747SPseries airplanes are not included in theapplicability of this proposed ADbecause they have a dry bay locatedbehind the front spar web. This wouldpreclude the type of potential firehazard situation addressed by this AD.In addition, if the subject fatiguecracking were to occur on theseairplanes, the cabin pressure would ventthrough the front spar web and then thelimiting access holes of the front spar;this would result in a loss ofpressurization, but not suddendecompression.

Differences Between the Proposed ADand the Alert Service Bulletin

Operators should note that the alertservice bulletin indicates that verticalcracks of 10 inches or greater in length,or cracks that extend in a diagonaldirection (regardless of length), orcracks that would affect an existingrepair, should be repaired in accordancewith the manufacturer’s instructions.However, the proposed AD wouldrequire that these types of cracks berepaired in accordance with a methodapproved by the FAA.

Cost ImpactThere are approximately 485 Model

747–200, –300, and –400 series

airplanes of the affected design in theworldwide fleet. The FAA estimates that105 airplanes of U.S. registry would beaffected by this proposed AD, that itwould take approximately 48 workhours per airplane to accomplish theproposed actions, and that the averagelabor rate is $60 per work hour. Basedon these figures, the cost impact of theproposed AD on U.S. operators isestimated to be $302,400, or $2,880 perairplane, per inspection cycle.

The cost impact figure discussedabove is based on assumptions that nooperator has yet accomplished any ofthe proposed requirements of this ADaction, and that no operator wouldaccomplish those actions in the future ifthis AD were not adopted.

Regulatory ImpactThe regulations proposed herein

would not have substantial direct effectson the States, on the relationshipbetween the national government andthe States, or on the distribution ofpower and responsibilities among thevarious levels of government. Therefore,in accordance with Executive Order12612, it is determined that thisproposal would not have sufficientfederalism implications to warrant thepreparation of a Federalism Assessment.

For the reasons discussed above, Icertify that this proposed regulation (1)is not a ‘‘significant regulatory action’’under Executive Order 12866; (2) is nota ‘‘significant rule’’ under the DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3) ifpromulgated, will not have a significanteconomic impact, positive or negative,on a substantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A copy of the draftregulatory evaluation prepared for thisaction is contained in the Rules Docket.A copy of it may be obtained bycontacting the Rules Docket at thelocation provided under the captionADDRESSES.

List of Subjects in 14 CFR Part 39Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed AmendmentAccordingly, pursuant to the

authority delegated to me by theAdministrator, the Federal AviationAdministration proposes to amend part39 of the Federal Aviation Regulations(14 CFR part 39) as follows:

PART 39—AIRWORTHINESSDIRECTIVES


Authority: 49 U.S.C. 106(g), 40113, 44701.


§ 39.13 [Amended]2. Section 39.13 is amended by

adding the following new airworthinessdirective:Boeing: Docket 96–NM–71–AD.

Applicability: Model 747–200, –300, and–400 series airplanes, up to and includingline number 744, certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenotherwise modified, altered, or repaired inthe area subject to the requirements of thisAD. For airplanes that have been modified,altered, or repaired so that the performanceof the requirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (e) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.

Compliance: Required as indicated, unlessaccomplished previously.

To prevent the leakage of fuel into theforward cargo bay through fatigue cracks inthe front spar web, which could result in apotential fire hazard, accomplish thefollowing:

(a) Perform a high frequency eddy current(HFEC) inspection to detect cracking of thefront spar web of the center section of thewing, in accordance with Boeing AlertService Bulletin 747–57A2298, Revision 1,dated September 12, 1996, at the timespecified in paragraph (a)(1) or (a)(2) of thisAD, as applicable.

(1) For airplanes that have accumulated12,000 to 17,999 total landings as of theeffective date of this AD: Within 12 monthsafter the effective date of this AD. Performthis inspection again prior to theaccumulation of 18,000 total landings orwithin 1,400 landings, whichever occurslater, and thereafter at intervals not to exceed1,400 landings.

(2) For all other airplanes: Prior to theaccumulation of 18,000 total landings orwithin 12 months after the effective date ofthis AD, whichever occurs later, andthereafter at intervals not to exceed 1,400landings.

(b) Except as provided by paragraph (c) ofthis AD, if any cracking is detected during aninspection required by paragraph (a) of thisAD, prior to further flight, repair inaccordance with paragraph (b)(1) or (b)(2) ofthis AD, as applicable. Thereafter repeat theHFEC inspection required by paragraph (a) ofthis AD at intervals not to exceed 1,400landings.

(1) If any vertical crack is found that is lessthan 10 inches in length, repair inaccordance with Boeing Alert ServiceBulletin 747–57A2298, Revision 1, datedSeptember 12, 1996.

(2) If any vertical crack is found that is 10inches or greater in length; or if any crack isfound that has extended in a diagonaldirection (regardless of length); or if anycrack is found that would affect an existingrepair; repair in accordance with a method

approved by the Manager, Seattle AircraftCertification Office (ACO), FAA, TransportAirplane Directorate.

(c) In lieu of accomplishing the proceduresspecified in paragraph (b) of this AD: If acrack in the front spar web is detected duringan HFEC inspection required by paragraph(a) of this AD, prior to further flight,operators may accomplish the procedures foran optional HFEC inspection to confirmcracking, as described in paragraph III.D.2. ofthe Accomplishment Instructions of BoeingAlert Service Bulletin 747–57A2298,Revision 1, dated September 12, 1996.

(1) If this optional inspection isaccomplished and cracking is not confirmed,thereafter repeat the HFEC inspectionspecified in paragraph (a) of this AD atintervals not to exceed 1,400 landings.

(2) If this optional inspection isaccomplished and confirms cracking, prior tofurther flight, repair the cracking inaccordance with paragraph (b)(1) or (b)(2) ofthis AD, as applicable.

(d) For airplanes that are required toperform an initial HFEC inspection inaccordance with paragraph (a)(1) of this AD:Within 30 days after accomplishing theinitial inspection, submit a report ofinspection results, negative or positive, thatincludes the information identified inparagraphs (d)(1) through (d)(5) of this AD,to the Manager, Seattle Aircraft CertificationOffice, FAA, Transport Airplane Directorate,1601 Lind Avenue, SW., Renton, Washington98055–4056; fax (206) 227–1181. Informationcollection requirements contained in thisregulation have been approved by the Officeof Management and Budget (OMB) under theprovisions of the Paperwork Reduction Act of1980 (44 U.S.C. 3501 et seq.) and have beenassigned OMB Control Number 2120–0056.

(1) Airplane serial number.(2) Total number of landings accumulated.(3) Total number of hours time-in-service

accumulated.(4) Location, size and orientation of each

crack.(5) Whether fuel leakage resulted from the

crack.(e) An alternative method of compliance or

adjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager, SeattleACO Directorate. Operators shall submit theirrequests through an appropriate FAAPrincipal Maintenance Inspector, who mayadd comments and then send it to theManager, Seattle ACO.

Note 2: Information concerning theexistence of approved alternative methods ofcompliance with this AD, if any, may beobtained from the Seattle ACO.

(f) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.

Issued in Renton, Washington, onNovember 8, 1996.Darrell M. Pederson,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 96–29417 Filed 11–15–96; 8:45 am]BILLING CODE 4910–13–U

ENVIRONMENTAL PROTECTIONAGENCY

40 CFR Part 52

[TX55–1–6879; FRL–5652–4]

Approval and Promulgation of AirQuality State Implementation Plans(SIP); Texas: Motor Vehicle Inspectionand Maintenance (I/M) Program;Extension of Comment Period

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Proposed interim rule;extension of the comment period.

SUMMARY: The EPA is extending thecomment period for a proposed actionpublished on October 3, 1996, (61 FR51651) pertaining to the Texas motorvehicle I/M program. On October 3,1996, EPA proposed a conditionalinterim approval of an I/M programsubmitted by the State of Texas underthe provisions of the Clean Air Act andthe National Highway SystemDesignation Act of 1995. On October 18,October 25, and October 28, 1996, EPAreceived requests for an extension of thepublic comment period from 30 days to90 days until January 3, 1997, to allowfor further analysis on the Agency’sproposed action. Based on theserequests, EPA is extending the commentperiod from date of signature of thisdocument until January 3, 1997.DATES: Comments on the October 3,1996, proposed conditional approval ofthe Texas I/M program must be receivedin writing on or before January 3, 1997.ADDRESSES: Written comments on thisaction should be addressed to Mr.Thomas H. Diggs, Chief, Air PlanningSection (6PD–L), EnvironmentalProtection Agency, Region 6, 1445 RossAvenue, Suite 700, Dallas, TX 75202–2733.FOR FURTHER INFORMATION CONTACT: Mr.James F. Davis, Air Planning Section(6PD–L), EPA Region 6, 1445 RossAvenue, Dallas, Texas 75202–2733,telephone (214) 665–7584.


List of Subjects in 40 CFR Part 52Environmental protection, Air

pollution control, Carbon monoxide,Hydrocarbons, Incorporation by


reference, Intergovernmental relations,Nitrogen dioxide, Ozone, Reporting andrecordkeeping requirements.

Dated: November 4, 1996.Jane N. Saginaw,Regional Administrator.[FR Doc. 96–29359 Filed 11–15–96; 8:45 am]BILLING CODE 6560–50–P

This section of the FEDERAL REGISTERcontains documents other than rules orproposed rules that are applicable to thepublic. Notices of hearings and investigations,committee meetings, agency decisions andrulings, delegations of authority, filing ofpetitions and applications and agencystatements of organization and functions areexamples of documents appearing in thissection.

Notices Federal Register

58673

Vol. 61, No. 223



Forest Service

Extension of Currently ApprovedInformation Collection for Timber SaleOperating Plans

AGENCY: Forest Service, USDA.ACTION: Notice of intent; request forcomments.

SUMMARY: In accordance with thePaperwork Reduction Act of 1995, theForest Service announces its intent torequest an extension of a currentlyapproved information collection for theagency’s timber sale operating plans.Forest Service timber sale contractsrequire purchasers to prepare theseoperating plans.DATES: Comments must be received inwriting on or before January 17, 1997.ADDRESSES: All comments should beaddressed to: Director, TimberManagement, MAIL STOP 1105, ForestService, USDA, P.O. Box 96090,Washington, D.C. 20090–6090.FOR FURTHER INFORMATION CONTACT: RexBaumback, Timber Management Staff, at(202) 205–0855.


Description of Information Collection

The following describes theinformation collection to be extended:

Title: Timber Sale Operating Plans.OMB Number: 0596–0086.Expiration Date of Approval: March

31, 1997.Type of Request: Extension of a

previously approved informationcollection.

Abstract: The information collected isused by the agency to plan the agencytimber sale contract administrationworkload and to determine whethertimber sale purchasers have hadscheduled operations delayed and are,therefore, eligible for an extension of thecontract termination date. Respondents

are National Forest System timber salepurchasers who prepare a chart or letterwithin 60 days of a timber sale contractaward, and annually thereafter until thecontract has been completed. Thetimber sale purchaser outlines timeframes and methods of accomplishingroad construction, timber harvesting,and other contract requirements.

The information is required by timbersale contract provisions in the 2400–6,Timber Sale Contract, and 2400–6T,Timber Sale Contract.

Data gathered in this informationcollection is not available from othersources.

Estimate of Burden: 30 minutes perresponse.

Type of Respondents: Individuals,large and small businesses, andcorporations purchasing National Foresttimber sales.

Estimated Number of Respondents:5,000 per year.

Estimated Number of Responses perRespondent: 1.5.

Estimated Total Annual Burden onRespondents: 3,750.

The agency invites comments on thefollowing: (a) Whether the proposedcollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information will havepractical utility; (b) the accuracy of thisagency’s estimate of the burden of theproposed collection of information,including the validity of themethodology and assumptions used; (c)ways to enhance the quality, utility, andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon respondents, including the use ofautomated, electronic, mechanical, orother technological collectiontechniques or other forms of informationtechnology.

Use of Comments

All comments received in response tothis notice will be summarized andincluded in the request for OMBapproval. All comments will alsobecome a matter of public record.

Dated: November 8, 1996.Valdis E. Mezainis,Acting Chief.[FR Doc. 96–29430 Filed 11–15–96; 8:45 am]BILLING CODE 3410–11–P

Skranak Road Construction KootenaiNational Forest, Lincoln County,Montana

AGENCY: Forest Service, USDA.ACTION: Notice of intent to prepare anenvironmental impact statement.

SUMMARY: Henry Skranak of Libby,Montana is the owner of record oflandlocked private property located inportions of Section 12 and 13,Township 26 North, Range 31 West,Principal Montana Meridian. The ForestService has received from Skranak aspecial use permit application for theconstruction of a dry season road to hisproperty. The Libby Ranger District onthe Kootenai National Forest intends toprepare an Environmental ImpactStatement (EIS) to assess and disclosethe environmental effects of roadconstruction on National Forest. TheSkranak decision area is locatedapproximately 26 miles south of Libby,Montana.

The EIS will tier to the KootenaiNational Forest Land and ResourceManagement Plan and Final EIS ofSeptember 1987, which provides overallguidance for forest management of thearea.DATE: Written comments andsuggestions should be received on orbefore December 18, 1996.ADDRESSES: The Responsible Official isRobert L. Schrenk, Forest Supervisor,Kootenai National Forest. Writtencomments and suggestions concerningthe scope of the analysis should be sentto Lawrence A. Froberg, District Ranger,Libby Ranger District, 12557 US Hwy 37N, Libby Montana, 59923.FOR FURTHER INFORMATION CONTACT:Jon Jeresek, Interdisciplinary TeamLeader, Libby Ranger District. Phone:(406) 293–7773.SUPPLEMENTARY INFORMATION: The westside of the Skranak property is thecommon boundary of a portion of theCabinet Mountains Wilderness. All ofthe Skranak property and proposed roadconstruction is located within theInventoried Roadless Area #671—Cabinet Face East. The decision area isoccupied grizzly bear habitat.

Proposed ActionThe Kootenai National Forest is

proposing to issue a Special Use Permitto Henry Skranak to construct a 10 footwide running surface road and use the

58674 Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Notices

road to access private property. Theconstruction is proposed to begin in1997. The purpose of the project is toprovide reasonable access to privateland that is surrounded by NationalForest as provided for under Public Law96–487, the Alaska National InterestLands Conservation Act (ANILCA). Noproposed activities are located in areasconsidered for inclusion to the NationalWilderness Preservation System asrecommended by the Kootenai NationalForest Plan.

The Kootenai National Forest Landand Resource Management Planprovides overall management objectivesin individual delineated managementareas (MA’s). The decision area isallocated to MA–2, Semi-Primitive Non-Motorized Recreation. Briefly described,MA–2 is managed to provide for theprotection and enhancement of areas forroadless recreation use, and to providefor wildlife management where specificvalues are high. Within grizzly bearhabitat, the goal of MA–2 is to providehabitat that will contribute to therecovery of the grizzly bear. SpecialUses may be permitted in a case by casebasis.

Preliminary IssuesSeveral preliminary issues of concern

have been identified by the ForestService. These issues are brieflydescribed below:

• Water Quality—How would theproposed action affect sedimentproduction?

• Roadless Areas—The proposed roadconstruction lies entirely within theCabinet Face East Inventoried RoadlessArea #671. What effect would theproposal have on the character of thisRoadless Area?

• Grizzly Bear—The decision area lieswithin the recovery area for the Cabinet/Yaak grizzly bear ecosystem. Howwould the proposal protect and enhancegrizzly bear habitat, and contribute torecovery efforts?

• Fisheries—The proposed roadconstruction would cross Bramlet and4th of July Creeks which are prioritybull trout streams. How would theproposed action affect sedimentproduction and bull trout habitat?

• Heritage Resources—The roadconstruction is proposed to occur overthe existing historic 4th of July Trail#115. Can the loss of this resource andassociated sites be mitigated?

Forest Plan AmendmentThe Kootenai National Forest Land

and Resource Management Plan hasspecific management direction for theSkranak decision area. Prior to makinga NEPA decision, a thorough

examination of all standards andguidelines of the Forest Plan would becompleted and, if necessary, planexceptions or amendments would beaddressed in the EIS.

Decisions To Be MadeThe Kootenai Forest Supervisor will

decide the following:Should road construction to the

Skranak property be permitted and if sohow and where;

What mitigation measures would berequired for protection of NationalForest resources; and

If Forest Plan exception oramendments are necessary to proceedwith the Proposed Action within thedecision area.

Public Involvement and ScopingAn open house will be scheduled

during the winter 1997, to provide anopportunity for the public to review theproposed action. Consultation withappropriate State and Federal agencieswill be initiated. Preliminary effectsanalysis indicated that the proposedroad construction may significantlyaffect the quality of the humanenvironment. These potential effectsprompted the decision to prepare an EISfor the Skranak Road Construction.

This environmental analysis anddecision making process will enableadditional interested and affectedpeople to participate and contribute tothe final decision. Public participationwill be requested at several pointsduring the analysis. The Forest Servicewill be seeking information, comments,and assistance from Federal, State, localagencies, and other individuals ororganizations who may be interested inor affected by the proposed projects.This input will be used in preparationof the draft and final EIS. The scopingprocess will include:

• Identifying potential issues.• Identifying major issues to be

analyzed in depth.• Exploring additional alternatives

which will be derived from issuesrecognized during scoping activities.

• Identifying potentialenvironmental effects of this project andalternatives (i.e. direct, indirect, andcumulative effects and connectedactions).

The analysis will consider a range ofalternatives, including the proposedaction, no action, and other reasonableaction alternatives.

Estimated Dates for FilingThe draft Skranak Road Construction

EIS is expected to be filed with theEnvironmental Protection Agency (EPA)and to be available for public review by

March, 1997. At that time EPA willpublish a Notice of Availability of thedraft EIS in the Federal Register. Thecomment period on the draft EIS will be45 days from the date the EPA publishesthe Notice of Availability in the FederalRegister.

The final EIS is scheduled to becompleted by July, 1997. In the finalEIS, the Forest Service is required torespond to comments and responsesreceived during the comment periodthat pertain to the environmentalconsequences discussed in the draft EISand applicable laws, regulations, andpolicies considered in making adecision regarding the proposal.

Reviewer’s ObligationsThe Forest Service believes, at this

early stage, it is important to givereviewers notice of several court rulingsrelated to public participation in theenvironmental review process. First,reviewers of draft environmental impactstatements must structure theirparticipation in the environmentalreview of the proposal so that it ismeaningful and alerts an agency to thereviewer’s position and contentions.Vermont Yankee Nuclear Power Corp. v.NRDC, 435 U.S. 519, 553 (1978). Also,environmental objections that could beraised at the draft environmental impactstatement stage may be waived ordismissed by the courts. City of Angoonv. Hodel, 803 F.2d 1016, 1022 (9th Cir.1986) and Wisconsin Heritages, Inc. v.Harris, 490 F. Supp. 1334, 1338 (E.D.Wis. 1980). Because of these courtrulings, it is very important that thoseinterested in this proposed actionparticipate by the close of the 45 daycomment period so that substantivecomments and objections are madeavailable to the Forest Service at a timewhen it can meaningfully consider andrespond to them in the final EIS.

To be most helpful, comments on thedraft EIS should be as specific aspossible and may address the adequacyof the statement or the merit of thealternatives discussed. Reviewers maywish to refer to the Council onEnvironmental Quality regulations forimplementing the procedural provisionsof the National Environmental PolicyAct at 40 CFR 1503.3 in addressingthese points.

Responsible OfficialRobert L. Schrenk, Forest Supervisor,

Kootenai National Forest, 506 USHighway 2 West, Libby, Mt 59923 is theResponsible Official. As the ResponsibleOfficial I will decide which, if any, ofthe proposed projects will beimplemented. I will document thedecision and reasons for the decision in

58675Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Notices

the Record of Decision. That decisionwill be subject to Forest Service AppealRegulations.

Dated: November 6, 1996.Robert L. Schrenk,Forest Supervisor.[FR Doc. 96–29444 Filed 11–15–96; 8:45 am]BILLING CODE 3410–11–M

Grain Inspection, Packers andStockyards Administration

Posting of Stockyards

Pursuant to the authority providedunder Section 302 of the Packers andStockyards Act (7 U.S.C. 202), it wasascertained that the livestock marketsnamed below were stockyards as

defined by Section 302 (a). Notice wasgiven to the stockyard owners and to thepublic as required by Section 302 (b), byposting notices at the stockyards on thedates specified below, that thestockyards were subject to theprovisions of the Packers andStockyards Act, 1921, as amended (7U.S.C. 181 et seq.).

Facility number, name, and location of Stockyard Date of posting

AL–188 Centre Livestock Market, Inc., Centre, Alabama ................................................................................................ November 9, 1995.FL–136 Florida Classic Horse Sales, Inc., Ocala, Florida ............................................................................................... June 30, 1995.GA–214 Lee’s Auction Sylvania, Georgia ......................................................................................................................... July 1, 1995.GA–215 Calhoun Stockyard Highway 53, Inc., Calhoun, Georgia ................................................................................... October 25, 1995.GA–217 Rocking Horse Ranch, Livestock Auction, Poulan, Georgia ............................................................................... October 24, 1996.MS–169 McDermott Sale Company, Byhalia, Mississippi ................................................................................................. October 24, 1996.MO–279 Joplin Regional Stockyards, Inc., Carthage, Missouri ........................................................................................ April 4, 1996.MO–280 Brookfield Sales Company, Brookfield, Missouri ................................................................................................ July 26, 1996.OR–126 Mike’s Livestock Auction, Eagle Point, Oregon .................................................................................................. January 1. 1996.PA–158 John Whiting Auction, New Wilmington, Pennsylvania ....................................................................................... June 30, 1995.SC–154 Double H Livestock, Pelzer, South Carolina ....................................................................................................... June 11, 1996.

Done at Washington, D.C. this 8th day ofNovember 1996.Daniel L. Van Ackeren,Director, Livestock Marketing Division,Packers and Stockyards Programs.[FR Doc. 96–29475 Filed 11–15–96; 8:45 am]BILLING CODE 3410–EN–P

Grain Inspection, Packers andStockyards Administration

Proposed Posting of Stockyard

The Grain Inspection, Packers andStockyards Administration, UnitedStates Department of Agriculture, hasinformation that the livestock marketsnamed below are stockyards as definedin Section 302 of the Packers andStockyards Act (7 U.S.C. 202), andshould be made subject to theprovisions of the Packers andStockyards Act, 1921, as amended (7U.S.C. 181 et seq.).GA–219—Gray Bell Auction Company

and Gray Bell Animal Auction,Royston, Georgia

IN–165—Dinky’s, Inc., Montgomery,Indiana

SC–155—David Stegall Auction Co.,Ridgeville, South Carolina

WY–115—Buffalo Livestock AuctionL.L.C., Buffalo, Wyoming.Pursuant to the authority under

Section 302 of the Packers andStockyards Act, notice is hereby giventhat it is proposed to designate thestockyards named above as postedstockyards subject to the provisions ofsaid Act.

Any person who wishes to submitwritten data, views or argumentsconcerning the proposed designation

may do so by filing them with theDirector, Livestock Marketing Division,Grain Inspection, Packers andStockyards Administration, Room 3408–South Building, U.S. Department ofAgriculture, Washington, D.C. 20250 byNovember 29, 1996. All writtensubmissions made pursuant to thisnotice will be made available for publicinspection in the office of the Directorof the Livestock Marketing Divisionduring normal business hours.

Done at Washington, D.C. this 8th day ofNovember 1996.Daniel L. Van Ackeren,Director, Livestock Marketing Division,Packers and Stockyards Programs.[FR Doc. 96–29474 Filed 11–15–96; 8:45 am]BILLING CODE 3410–EN–P

DEPARTMENT OF COMMERCE

National Oceanic and AtmosphericAdministration

[I.D. 110896A]

Gulf of Mexico Fishery ManagementCouncil; Public Meeting

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Notice of public meeting.

SUMMARY: The Gulf of Mexico FisheryManagement Council (Council) willconvene a public meeting of the ReefFish Advisory Panel (AP).DATES: This meeting will be held onDecember 13, 1996, from 8:00 a.m. to4:00 p.m.

ADDRESSES: This meeting will be held atthe Doubletree Guest Suites Hotel, 4400West Cypress Street, Tampa, FL 33607;telephone: 813–873–8675.

Council address: Gulf of MexicoFishery Management Council, 5401West Kennedy Boulevard, Suite 331,Tampa, FL 33609.FOR FURTHER INFORMATION CONTACT:Steven Atran, Population DynamicsStatistician; telephone: 813–228–2815.SUPPLEMENTARY INFORMATION: Thepurpose of the meeting will be to reviewstock assessments and biologicalinformation for red snapper, vermilionsnapper and amberjacks prepared byNMFS. They will also review reports onthe status of these stocks and possiblerecommendations for levels ofacceptable biological catch (ABC) fromthe Council’s Reef Fish StockAssessment Panel, and on the social andeconomic implications of recommendedABC ranges from the SocioeconomicPanel. Based on this information, theReef Fish AP may makerecommendations for managementmeasures to the Council. The Reef FishAP will also discuss options beingconsidered for inclusion in Reef FishAmendment 15 that would restrict thecommercial harvest of reef fish onfishing vessels fishing with traps otherthan permitted fish traps, stone crabtraps or spiny lobster traps.

The AP is comprised of fishermen andother user groups who advise theCouncil on fishery issues.

Special AccommodationsThis meeting is physically accessible

to people with disabilities. Requests forsign language interpretation or otherauxiliary aids should be directed to


Anne Alford at the Council (seeADDRESSES) by December 6, 1996.

Dated: November 12, 1996.Bruce Morehead,Acting Director, Office of SustainableFisheries, National Marine Fisheries Service.[FR Doc. 96–29468 Filed 11–15–96; 8:45 am]BILLING CODE 3510–22–F

[I.D. 110796E]

Mid-Atlantic Fishery ManagementCouncil; Meeting

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.

ACTION: Notice of public meeting.

SUMMARY: The Mid-Atlantic FisheryManagement Council’s SummerFlounder Monitoring Committee andScup Monitoring Committee will hold apublic meeting.

DATES: The meeting will be held onDecember 3, 1996. The SummerFlounder Monitoring Committee willmeet from 10:00 a.m. until 1:00 p.m.The Scup Monitoring Committee willmeet from 2:00 p.m. until 5:00 p.m.

ADDRESSES: This meeting will be held atthe Days Inn, 4101 Island Avenue,Philadelphia, PA 19153; telephone:215–492–0400.

Council address: Mid-Atlantic FisheryManagement Council, 300 S. NewStreet, Dover, DE 19901; telephone:302–674–2331.

FOR FURTHER INFORMATION CONTACT:David R. Keifer, Executive Director;telephone: 302–674–2331.

SUPPLEMENTARY INFORMATION: Thepurpose of each meeting is torecommend the recreationalmanagement measures for summerflounder and scup for 1997.

Special Accommodations

This meeting is physically accessibleto people with disabilities. Requests forsign language interpretation or otherauxiliary aids should be directed toJoanna Davis at 302–674–2331 at least 5days prior to the meeting date.

Dated: November 12, 1996.Bruce Morehead,Acting Director, Office of SustainableFisheries, National Marine Fisheries Service.[FR Doc. 96–29467 Filed 11–15–96; 8:45 am]BILLING CODE 3510–22–F

[I.D. 110196C]

Marine Mammals; Scientific ResearchPermit No. 1020

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Issuance of permit.

SUMMARY: Notice is hereby given thatDrs. James T. Harvey and Jenifer Hurley,Moss Landing Marine Laboratories, P.O.Box 450, Moss Landing, CA 95039–0450, (co-investigator: Dr. Daniel P.Costa, Long Marine Laboratory, Centerfor Marine Studies, University ofCalifornia, Santa Cruz, CA 95064) havebeen issued a permit to take marinemammals for purposes of scientificresearch.ADDRESSES: The permit and relateddocuments are available for reviewupon written request or by appointmentin the following office(s):

Permits Division, Office of ProtectedResources, NMFS, 1315 East-WestHighway, Room 13130, Silver Spring,MD 20910 (301/713–2289); and

Regional Administrator, SouthwestRegion, NMFS, 501 West OceanBoulevard, Suite 4200, Long Beach, CA90802–4213 (310/980–4001).SUPPLEMENTARY INFORMATION: On August16, 1996, notice was published in theFederal Register (61 FR 42593) that arequest for a scientific research permitto obtain beached and strandedCalifornia sea lions and take largewhales by harassment had beensubmitted by the above-namedindividuals. The requested permit hasbeen issued under the authority of theMarine Mammal Protection Act of 1972,as amended (16 U.S.C. 1361 et seq.), theRegulations Governing the Taking andImporting of Marine Mammals (50 CFRpart 216), the Endangered Species Act,as amended (16 U.S.C. 1531 et seq.), andthe regulations governing the taking,importing, and exporting of endangeredfish and wildlife (50 CFR 222.23).

Issuance of this permit, as required bythe ESA was based on a finding thatsuch permit: (1) Was applied for in goodfaith; (2) will not operate to thedisadvantage of the endangered specieswhich is the subject of this permit; and(3) is consistent with the purposes andpolicies set forth in section 2 of theESA.

Dated: November 4, 1996.Ann D. Terbush,Chief, Permits and Documentation Division,Office of Protected Resources, NationalMarine Fisheries Service.[FR Doc. 96–29469 Filed 11–15–96; 8:45 am]BILLING CODE 3510–22–F

[I.D. 110796A]

Marine Mammals; Scientific ResearchPermit (PHF# PHF000815, AAP#001312-00)

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Receipt of application.

SUMMARY: Notice is hereby given thatBirgit Winning, Oceanic SocietyExpeditions, Fort Mason Center, Bldg. E,San Francisco, CA 94123, has applied indue form for a permit to take Hawaiianmonk seals (Monachus schauinslandi)on Midway Atoll, Hawaii for purposesof scientific research.DATES: Written comments must bereceived on or before December 16,1996.ADDRESSES: The application and relateddocuments are available for reviewupon written request or by appointmentin the following office(s):

Permits Division, Office of ProtectedResources, NMFS, 1315 East-WestHighway, Room 13130, Silver Spring,MD 20910 (301/713–2289);

Regional Administrator, SouthwestRegion, 501 West Ocean Boulevard,Suite 4200, Long Beach, CA 90802-4213(310/980-4001); and

Protected Species Coordinator, PacificArea Office, 2570 Dole Street, Room106, Honolulu, HI 96822–2396 (808/973–2987).

Written data or views, or requests fora public hearing on this request, shouldbe submitted to the Director, Office ofProtected Resources, NMFS, 1315 East-West Highway, Room 13130, SilverSpring, MD 20910. Those individualsrequesting a hearing should set forth thespecific reasons why a hearing on thisapplication would be appropriate.

Concurrent with the publication ofthis notice in the Federal Register,NMFS is forwarding copies of thisapplication to the Marine MammalCommission and its Committee ofScientific Advisors.SUPPLEMENTARY INFORMATION: Thesubject permit is requested under theauthority of the Marine MammalProtection Act of 1972, as amended (16U.S.C. 1361 et seq.), the RegulationsGoverning the Taking and Importing ofMarine Mammals (50 CFR part 216), theEndangered Species Act of 1973, asamended (16 U.S.C. 1531 et seq.), andthe regulations governing the taking,importing, and exporting of endangeredfish and wildlife (50 CFR part 222.23).

The applicant proposes to conduct thefollowing scientific research activitieson Hawaiian monk seals on Midway


Atoll: behavioral observations, tagging/bleach marking, and necropsies on sealsfound dead in the wild. The applicantrequests this permit for a five yearperiod.

In compliance with the NationalEnvironmental Policy Act of 1969 (42U.S.C. 4321 et seq.), an initialdetermination has been made that theactivity proposed is categoricallyexcluded from the requirement toprepare an environmental assessment orenvironmental impact statement.


[I.D. 110796B]

Marine Mammals; Scientific ResearchPermit (P772#69)

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Receipt of application.

SUMMARY: Notice is hereby given thatthe Southwest Fisheries Science Center,National Marine Fisheries Service, 8604La Jolla Shores Drive, La Jolla, CA92037, has applied in due form for apermit to take Antarctic pinnipeds forpurposes of scientific research.DATES: Written comments must bereceived on or before December 18,1996.ADDRESSES: The application and relateddocuments are available for reviewupon written request or by appointmentin the following office(s):

Permits Division, Office of ProtectedResources, NMFS, 1315 East-WestHighway, Room 13130, Silver Spring,MD 20910 (301/713–2289); and

Regional Administrator, SouthwestRegion, NMFS, 501 West Ocean Blvd.,Suite 4200, Long Beach, CA 90802–4213.

Written data or views, or requests fora public hearing on this request, shouldbe submitted to the Director, Office ofProtected Resources, NMFS, 1315 East-West Highway, Room 13130, SilverSpring, MD 20910. Those individualsrequesting a hearing should set forth thespecific reasons why a hearing on thisparticular request would be appropriate.

Concurrent with the publication ofthis notice in the Federal Register,NMFS is forwarding copies of thisapplication to the Marine Mammal

Commission and its Committee ofScientific Advisors.SUPPLEMENTARY INFORMATION: Thesubject permit is requested under theauthority of the Marine MammalProtection Act of 1972, as amended(MMPA; 16 U.S.C. 1361 et seq.), and theRegulations Governing the Taking andImporting of Marine Mammals (50 CFRpart 216).

The applicant requests authority toconduct level B harassment activities[i.e., censuses] on Antarctic pinnipedsin the South Shetland Islands,Antarctica. Additionally, up to 1050Antarctic fur seals will be captured,handled and released. During theseactivities, up to 1934 Antarctic fur seals,99 southern elephant seals, 7 leopardseals, 15 Weddell seals, 1 Ross seal maybe inadvertently harassed, and 1 animalmay be accidentally killed or injuredduring capture operations.


COMMODITY FUTURES TRADINGCOMMISSION

Audit Trail Requirements, Exemption;Minneapolis Grain Exchange

AGENCY: Commodity Futures TradingCommission.ACTION: Opinion and order.

SUMMARY: Section 5a(b)(3) of theCommodity Exchange Act (‘‘Act’’)provides that the audit trail system ofeach contract market must meet theheightened audit trail standards thatbecame effective on October 28, 1995.However, Section 5a(b)(5) of the Actprovides that the Commodity FuturesTrading Commission (‘‘Commission’’)shall, by rule or order, make anexemption from the enhanced audit trailrequirements for low-volume exchangesthat can meet certain standards

The Commission, pursuant to itsauthority under Section 5a(b)(5), hasdetermined to grant the MinneapolisGrain Exchange an exemption fromSection 5a(b)(3), subject to continuingcompliance by the Minneapolis GrainExchange with all statutoryrequirements for the exemption.DATE: The Commission’s order will takeeffect 30 legislative days or 90 calendardays, whichever is later, aftersubmission of the order to theCommittee on Agriculture of the House

of Representatives and the Committeeon Agriculture, Nutrition, and Forestryof the Senate. To confirm the date theorder will take effect, contact theDivision of Trading and markets in ForFurther Information Contact.FOR FURTHER INFORMATION CONTACT:Brian Regan, Attorney-Advisor, Divisionof Trading and Markets, CommodityFutures Trading Commission, 3Lafayette Center, 1155 21st St. K Street,N.W., Washington, DC 20581; telephone(202) 418–5490.

SUPPLEMENTARY INFORMATION: OnNovember 12, 1996, the Commissionissued the following opinion and orderas authorized by Section 5a(b)(5) of theAct:

Opinion and Order Granting anExemption From the Requirements ofSection 5a(b)(3)

Upon consideration of the availablerecord and pursuant to its statutoryauthority under Section 5a(b)(5) of theCommodity Exchange Act (‘‘Act’’), theCommission has determined to grant theMinneapolis Grain Exchange anexemption from the audit trailrequirements of Section 5a(b)(3) of theAct, which became effective on October28, 1995.

The Commission finds that theMinneapolis Grain Exchange hasdemonstrated that it satisfies thestandards set forth in Section 5a(b)(5)for an exemption from Section 5a(b)(3).Specifically, the Commission finds thatthe Minneapolis Grain Exchange:

(1) Has a level of trading volume thatis relatively small;

(2) Is in substantial compliance withthe audit trail objectives of Section5a(b)(3); and

(3) Generally has maintained a highlevel of compliance with therequirements in Section 5a(b) for aneffective trade monitoring system.

Accordingly, the CommissionHEREBY ORDERS that the MinneapolisGrain Exchange be exempted at thistime from the requirements of Section5a(b)(3). As part of this exemption, theMinneapolis Grain Exchange mustcontinue to maintain compliance withall statutory requirements for theexemption. Under Section 5a(b)(6), thisorder shall become effective 30legislative days or 90 calendar days,whichever is later, after submission ofthe order to the Committee onAgriculture of the House ofRepresentatives and the Committee onAgriculture, Nutrition, and Forestry ofthe Senate.

Dated: November 12, 1996.


By the Commission.Jean A. Webb.Secretary to the Commission.[FR Doc. 96–29466 Filed 11–15–96; 8:45 am]BILLING CODE 6351–01–M

DEPARTMENT OF DEFENSE

Department of the Army

Cargo Liability of Carrier

AGENCY: Military Traffic ManagementCommand (MTMC), DOD.ACTION: Notice.

SUMMARY: This is a final notice. Affectedrules are MTMC Freight Traffic RulesPublication No. 1A (MFTRP No. 1A),Items 112, 113, 115, and 116, effectiveApril 24, 1990. The new liability willbe: ‘‘For all shipments weighing lessthan 15,000 pounds, the carrier’sliability for lost and/or damaged cargowill be limited to the lowest dollaramount of either $50,000 or the actualamount of the loss and/or damage to thearticle(s). Should a shipper desire todeclare and establish a cargo liability foran amount greater than $50,000, thecarrier agrees to provide this increasedliability coverage for $ll per each$100 increase in lost and/or damagedcargo liability over the maximumliability. For all shipments weighing15,000 pounds and over, the carrier’sliability for lost and/or damaged cargowill be limited to the lowest dollaramount of either $150,000 or the actualamount of the loss and/or damage to thearticle(s). Should a shipper desire todeclare and establish a cargo liability foran amount greater than $150,000, thecarrier agrees to provide this increasedliability coverage for $ll per each$100 increase in lost and/or damagedcargo liability over the maximumliability.’’DATES: This change will becomeeffective February 1, 1997.FOR FURTHER INFORMATION CONTACT:Military Traffic Management Command,5611 Columbia Pike, Falls Church, VA22041–5050. Point of contact is Mr.Julian Jolkovsky, MTOP–T–SR, (703)681–3440, or Ms. Crystal Hunter,MTOP–QER, (703) 681–6579.SUPPLEMENTARY INFORMATION: Based on acareful and thorough review ofcomments received by MTMC, thepolicy change that was recommendedon March 14, 1996, will becomeeffective on February 1, 1997. Theoriginal proposal is in keeping withrecommendations made in the GeneralAccounting Office (GAO) report,‘‘Defense Transportation: Ineffective

Oversight Contributes to Freight Losses’’(GAO/NSIAD–92–96). GAO pointed outthat under MTMCs current carrierliability limitations, recoveries on lostor damaged motor freight shipmentsaverage 30 cents for every dollar ofactual value of the cargo and have beenat or near this average for at least theprevious three fiscal years (October1992–September 1995). MTMC’s ownreview of FY 96 claims data reveals thatthe Government is collecting less than31 cents from carriers for every dollar ofclaims involving lost and/or damagedproperty. This is not a responsible useof tax dollars and serves to benefit onlythe carrier industry. The proposedchange is expected to permit DOD torecover actual value on at least 90percent of lost or damaged shipments.

Notices in the Federal Register (FR),March 14, 1996, and June 6, 1996,provided notice of MTMC’s proposedchange to motor carrier liabilitylimitations for Freight All Kinds (FAK)shipments moving under motor carriervoluntary tenders, other thanGuaranteed Traffic. Only one set ofcomments on this proposal was receivedfrom the carrier industry by thedeadline date of August 5, 1996, fromthe legal representatives of the NationalMotor Freight Traffic Association, theRegular Common Carrier Conference,and the Transportation Loss Preventionand Security Council in a letter datedAugust 2, 1996. One comment allegedthat MTMC is attempting to engageunilaterally in ‘‘rate making’’ practicesand insisted that current releasedvaluation policy, which is based on aper pound rate, should be maintained.Essentially, this comment misconstruesMTMC’s intent. With few exceptions,rate making and rate submissions inresponse to MTMC movementrequirements are carrier responsibilities.MTMC’s intent in changing the level ofcarrier liability is to establish levelswhich will reasonably reimburse theGovernment for carrier-caused loss and/or damage to DOD-sponsoredshipments. After careful review ofinformation presented in the comments,MTMC’s position is that to continue theuse of released valuation limitations of$1.75 or $2.50 per pound is not aprudent use of tax dollars, severelyrestricts the Government’s ability toobtain reasonable reimbursement forcarrier-caused loss and/or damage toDOD sponsored shipments, and wouldbe in direct conflict with therecommendations set forth in the June,1992, GAO report. Furthermore, theselow levels of valuation for loss and/ordamage to Government property mayinduce carriers to offer less than a full

level of safety, security, care, andhandling to these shipments.

As a matter of backgroundinformation, beginning in December,1994, MTMC implemented the samechange in carrier liability limits forGuaranteed Traffic (G/T) shipments.This change raised no complaints fromthe carrier industry and has shownpositive benefits for the Government inmonetary recoveries from freight claimsfiled against G/T carriers for shipmentswhich have incurred loss and/ordamage. It is also noted that many motorfreight carriers participate in both the G/T and voluntary programs; therefore,standardizing carrier liability levelsbetween the two programs will enhanceadministrative shipment planning andmovement procedures.

During FY 94, DOD tendered over 1million freight shipments to motorcarriers at a transportation cost in excessof $400 million. The total value of goodsmoved by commercial carriers isindeterminable; however, the valuerepresents a significant taxpayerinvestment in the equipment andsupplies used to support the ArmedForces. On any given day, the motorcarrier industry may be entrusted withproviding transportation services forover 50,000 less-than-truckload andtruckload shipments. The timely,damage-and loss-free movement of thesesupplies directly impact militaryreadiness. Lost, partially damaged, ortotally destroyed supplies andequipment provide little benefit to themilitary services and negatively impactreadiness. Furthermore, the inability ofDOD to recoup equitable monetaryreimbursement from carriers because ofartificially low carrier liability levels, torepair or replace damaged or lostsupplies, substantially impactsbudgetary and program funding.Increasing carrier liability levels willcure some of these shortfalls.

The commentator also stated thatMTMC was not negotiating with thecarrier industry as required by DODregulations. MTMC’s view is thatregular negotiations are conducted withindustry at partnering meetings andother public forums. Under the MotorCarrier Act of 1980, the level of carrierliability is negotiable between theshipper and the carrier. However, at thesame time, MTMC, as singletransportation manager for DOD surfacefreight shipments, is well within itsauthority to determine the level ofliability that best protects DODshipments. Also, the carrier is free tooffer any rate that it feels willadequately compensate it.

MTMC accomplishes ‘‘negotiation’’ ofterms and conditions of service through


1 References to the ‘‘Act’’ refer to the EnergyPolicy and Conservation Act, as amended. 42 U.S.C.§§ 6291—6309.

the FR, because it is impractical to dealwith and discuss the nature of MTMC’sbusiness and its requirementsindividually with more than 500approved carriers. Also, suchnegotiation does not mean that MTMCwill allow carriers to dictate the termsof the program. Under 49 U.S.C. 13712,formerly 49 U.S.C. 10721, motor carriersmay quote a reduced rate to thegovernment; however, it does notprovide that the Government mustaccept the rates offered. In any event, 49U.S.C. section 13712 no longer appliesto motor carrier freight. It only appliesto household goods and certain watershipments. Carriers may now offer anyfreight rates they want to anyone.

MTMC’s procurement authority isderived from the Armed ServicesProcurement Act (10 U.S.C. 2301, etseq.) MTMC has the authority to makeits own arrangements, and has the rightto contract on its own terms on behalfof its DOD customers. Accordingly,MTMC’s proposed changes to carrierliability levels has been endorsed bymajor DOD shippers, MTMC’scustomers.

Because the policy change appliesonly to motor shipments of generalcargo, Freight All Kinds, the motorcarriers have the opportunity to offerwhatever rates they hold to bereasonable for the level of liability thatDOD requires. MRMC recognizes thatincreases in carrier liability may resultin somewhat higher line haul charges.However, MTMC expects that thosecarriers which have aggressive safety,claims prevention, employee training,and quality control programs will havelittle or no difficulty in accommodatingthese changes and will continue toprovide quality service at reasonablerates to the DOD. In addition, MTMCexpects any increase in line haulcharges to be offset by the beneficialaspects of corresponding increases inrecoveries from carriers for lost anddamaged freight and, as serviceimproves, a decrease in administrativecosts to process claims. Shifting agreater level of monetary responsibilityto carriers for carrier-caused loss anddamage removes the burden for theseoccurrences from DOD and the taxpayerand places them on the carrier.Maintaining artificially low levels ofliability for loss and damage acts as adistinctive to promoting andmaintaining a safe, damage- and loss-free Defense Transportation System.

An effective date for these changes ofFebruary 1, 1997, will afford carriers anopportunity to adjust their rates, ifnecessary, to accommodate anyforecasted increases or decreases intheir operating-costs based on their

historical incidences of loss and/ordamage to shipments.Gregory D. Showalter,Army Federal Register Liaison Officer.[FR Doc. 96–29427 Filed 11–15–96; 8:45 am]BILLING CODE 3710–08–M

Movement of Foreign Military SalesMaterial Under Department of DefenseStandard Tender of Freight ServicesMT Form 364–R–Policy Change(Required Use of Standard Tender ofFreight Services MT Form 364–R forthe Movement of Foreign Military SalesMaterial)

AGENCY: Military Traffic ManagementCommand (MTMC), Department of theArmy.ACTION: Notice.

SUMMARY: The Military TrafficManagement Command (MTMC) isproposing to change its rate verificationprocedure by requiring that carriers filetenders of service to participate inForeign Military Sales (FMS) traffic, asfollows:

Carriers who want to participate inFMS movements will submit avoluntary Standard Tender(s) of FreightServices MT Form 364–R numbered inthe 300000 series (300001 through349999) applicable to FMS materialonly. Tenders will be consecutivelynumbered and prepared according toinstructions contained in MTMCStandard Tender Instruction PublicationNo. 364A. Rules and accessorial servicesgoverning movement will be MTMCFreight Traffic Rules Publication(MFTRP) No. 1A for motortransportation and MFTRP No. 10 forrail transportation. The applicablepublication must be shown as agoverning publication in Section B ofthe tender for the tender to beconsidered for routing.DATES: The policy change is effective noearlier than 60 days after publication ofthis notice.ADDRESSES: Interested parties arerequested to submit comments on thisproposal. The comments should beaddressed to Headquarters, MilitaryTraffic Management Command, Room117, 5611 Columbia Pike, Falls Church,VA 22041–5050, ATTN: MTTM–D(Barbara McGinnis).FOR FURTHER INFORMATION CONTACT: Ms.Barbara McGinnis, MTTM–D, (703)681–6103, or [email protected] INFORMATION: MTMC’sprocedural change supports the Officeof the Secretary of Defense’s initiative to

automate the Government Bill of Ladingpayment process for the Department ofDefense. This notice supersedes theApril 3, 1996, Federal Register noticepertaining to ‘‘Tender FilingInstructions for the Movement ofForeign Military Sales (FMS) Material,’’61 FR 14760.Gregory D. Showalter,Army Federal Register Liaison Officer.[FR Doc. 96–29428 Filed 11–13–96; 8:45 am]BILLING CODE 3710–08–M

DEPARTMENT OF ENERGY

Office of Energy Efficiency andRenewable Energy; EnergyConservation Program for ConsumerProducts; Representative Average UnitCosts of Energy

AGENCY: Office of Energy Efficiency andRenewable Energy, Department ofEnergy.ACTION: Notice.

SUMMARY: In this notice, the Departmentof Energy (DOE or Department) isforecasting the representative averageunit costs of five residential energysources for the year 1997. The fivesources are electricity, natural gas, No.2 heating oil, propane, and kerosene.The representative unit costs of theseenergy sources are used in the EnergyConservation Program for ConsumerProducts established by the EnergyPolicy and Conservation Act, Pub. L.No. 94–163, 89 Stat. 871, as amended,(EPCA).EFFECTIVE DATE: The representativeaverage unit costs of energy containedin this notice will become effectiveDecember 18, 1996 and will remain ineffect until further notice.FOR FURTHER INFORMATION CONTACT:Dr. Barry P. Berlin, U.S. Department of

Energy, Office of Energy Efficiencyand Renewable Energy, ForrestalBuilding, Mail Station EE–43, 1000Independence Avenue, SW.,Washington, DC 20585–0121, (202)586–9127

Eugene Margolis, Esq., U.S. Departmentof Energy, Office of General Counsel,Forrestal Building, Mail Station GC–72, 1000 Independence Avenue, SW.,Washington, DC 20585–0103, (202)586–9507

SUPPLEMENTARY INFORMATION: Section323 of the EPCA (Act) 1 requires thatDOE prescribe test procedures for thedetermination of the estimated annual


operating costs or other measures ofenergy consumption for certainconsumer products specified in the Act.These test procedures are found in 10CFR Part 430, Subpart B.

Section 323(b) of the Act requires thatthe estimated annual operating costs ofa covered product be computed frommeasurements of energy use in arepresentative average-use cycle andfrom representative average unit costs ofenergy needed to operate such productduring such cycle. The section furtherrequires DOE to provide informationregarding the representative averageunit costs of energy for use whereversuch costs are needed to performcalculations in accordance with the testprocedures. Most notably, these costsare used under the Federal TradeCommission appliance labeling programestablished by Section 324 of the Actand in connection with advertisementsof appliance energy use and energy

costs which are covered by Section323(c) of the Act.

The Department last publishedrepresentative average unit costs ofresidential energy for use in theConservation Program for ConsumerProducts on January 19, 1996. (61 FR1366). Effective December 18, 1996, thecost figures published on January 19,1996, will be superseded by the costfigures set forth in this notice.

The Department’s Energy InformationAdministration (EIA) has developed the1997 representative average unit after-tax costs of electricity, natural gas, No.2 heating oil, and propane and keroseneprices found in this notice. The costprojections for heating oil, electricityand natural gas are found in the fourthquarter, 1996, EIA Short-Term EnergyOutlook, DOE/EIA–0226 (96/4Q) andreflect the mid-price scenario.Projections for residential propane andkerosene prices are derived from theirrelative prices to that of heating oil,

based on 1994 averages for these threefuels. The sources for these price dataare the Petroleum Marketing Annual1994 (DOE/EIA–0487(94)) and theSeptember 1996 Monthly Energy Review(DOE/EIA–0035(96/09). The Short-TermEnergy Outlook, the PetroleumMarketing Annual 1994, and theMonthly Energy Review are available atthe National Energy Information Center,Forrestal Building, Room 1F–048, 1000Independence Avenue, SW.,Washington, DC 20585, (202) 586–8800.

The 1997 representative average unitcosts stated in Table 1 are providedpursuant to Section 323(b)(4) of the Actand will become effective December 18,1996. They will remain in effect untilfurther notice.

Issued in Washington, DC, on November12, 1996.Christine A. Ervin,Assistant Secretary, Energy Efficiency andRenewable Energy.

TABLE 1.—REPRESENTATIVE AVERAGE UNIT COSTS OF ENERGY FOR FIVE RESIDENTIAL ENERGY SOURCES (1997)

Type of energy Per millionBtu 1 In commonly used terms As required by

test procedure

Electricity .................................................................................................................. $24.35 8.31¢/kWh 2, 3 ..................... .0831/kWhNatural gas ............................................................................................................... 6.12 61.2¢/therm 4 or .................. .00000612/Btu

$6.29/MCF 5, 6 .....................No. 2 Heating Oil ...................................................................................................... 7.14 $.99/gallon 7 ........................ .00000714/BtuPropane .................................................................................................................... 10.73 $.98/gallon 8 ........................ .00001073/BtuKerosene .................................................................................................................. 8.59 $1.16/gallon 9 ...................... .00000859/Btu

1 Btu stands for British thermal units.2 kWh stands for kilowatt hour.3 1 kWh =3,412 Btu.4 1 therm =100,000 Btu. Natural gas prices include taxes.5 MCF stands for 1,000 cubic feet.6 For the purposes of this table, one cubic foot of natural gas has an energy equivalence of 1,028 Btu.7 For the purposes of this table, one gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu.8 For the purposes of this table, one gallon of liquid propane has an energy equivalence of 91,333 Btu.9 For the purposes of this table, one gallon of kerosene has an energy equivalence of 135,000 Btu.


Federal Energy RegulatoryCommission

[Docket No. EG97–11–000, et al.]

PMDC Netherlands B.V., et al.; ElectricRate and Corporate Regulation Filings

November 8, 1996.Take notice that the following filings

have been made with the Commission:

1. PMDC Netherlands B.V.

[Docket No. EG97–11–000]On November 4, 1996, PMDC

Netherlands B.V. (the Applicant) whoseaddress is 4e Etage, 3012 CA Rotterdam,The Netherlands, filed with the FederalEnergy Regulatory Commission anapplication for determination of exempt

wholesale generator status pursuant toPart 365 of the Commission’sRegulations.

The Applicant states that it will beengaged directly and exclusively in thebusiness of owning four hydroelectricgenerating facilities in Spain, andselling electric energy at wholesale. TheApplicant requests a determination thatthe Applicant is an exempt wholesalegenerator under Section 32(a)(1) of thePublic Utility Holding Company Act of1935.

Comment date: November 29, 1996, inaccordance with Standard Paragraph Eat the end of this notice. TheCommission will limit its considerationof comments to those that concern theadequacy or accuracy of the application.

2. Hidro Iberica B.V.

[Docket No. EG97–12–000]On November 4, 1996, Hidro Iberica

B.V. (the ‘‘Applicant’’) whose address is4e Etage, 3012 CA Rotterdam, TheNetherlands, filed with the FederalEnergy Regulatory Commission anapplication for determination of exemptwholesale generator status pursuant toPart 365 of the Commission’sRegulations.

The Applicant states that it will beengaged directly and exclusively in thebusiness of owning four hydroelectricgenerating facilities located in Spain,and selling electric energy at wholesale.The Applicant requests a determinationthat the Applicant is an exemptwholesale generator under Section32(a)(1) of the Public Utility HoldingCompany Act of 1935.

Comment date: November 29, 1996, inaccordance with Standard Paragraph E


at the end of this notice. TheCommission will limit its considerationof comments to those that concern theadequacy or accuracy of the application.

3. North American Energy ServicesCompany

[Docket No. EG97–14–000]On November 5, 1996, North

American Energy Services Company, aWashington corporation, 999 LakeDrive, Suite 310, Issaquah, Washington98027 (the ‘‘Applicant’’), filed with theFederal Energy Regulatory Commissionan application for determination ofexempt wholesale generator (‘‘EWG’’)status pursuant to Part 365 of theCommission’s Regulations.

The Applicant will be engaged inmanaging daily operations andmaintenance of eligible facilities to beconstructed in Colombia: The 130 MWTermovalle power plant located at Valledel Cauca, Colombia, consisting of aWestinghouse 501F combustion turbinegenerator and associated equipment andreal estate. The turbine will be naturalgas or fuel oil No. 2 fired.

Comment date: November 29, 1996, inaccordance with Standard Paragraph Eat the end of this notice. TheCommission will limit its considerationof comments to those that concern theadequacy or accuracy of the application.

4. New England Power Company

[Docket No. ER97–300–000]Take notice that on October 31, 1996,

New England Power Company (NEP),tendered for filing Service Agreementsunder its FERC Electric Tariff, OriginalVolume No. 9 for Network IntegrationTransmission Service to GreenMountain Power Corporation andCentral Vermont Public Service. NEPalso tendered, as a supplement to theCVPS Service Agreement, a SupportAgreement for the G–33 Circuit.

Comment date: November 21, 1996, inaccordance with Standard Paragraph Eat the end of this notice.

5. Atlantic City Electric Company


Atlantic City Electric Companysubmitted a filing in compliance withthe Commission’s order of September26, 1996 in the captioned docket.


6. Northeast Utilities Service Company


Northeast Utilities Service Companytendered for filing its refund report inthe above-referenced docket.


7. Plum Street Marketing Energy, Inc.Niagara Mohawk Power Corporation

[Docket No. ER96–2525–001; Docket No.ER96–2585–001]

Take notice that on October 10, 1996,Plum Street Energy Marketing, Inc., andNiagara Mohawk Power Corporationsubmitted their filing in compliancewith the Commission’s September 25,1996 order in the above-captioneddockets.


8. The Montana Power Company


The Montana Power Company(Montana), tendered for filing with theFederal Energy Regulatory Commissionpursuant to 18 CFR 35.13 Firm andNon-Firm Point-to-Point TransmissionService Agreements with MissoulaElectric Cooperative, Inc. (MEC) andVigilante Electric Cooperative, Inc.(VEC) under FERC Electric Tariff,Original Volume No. 2 (Open AccessTransmission Tariff).

A copy of the filing was served uponMEC and VEC.


9. Southwestern Public ServiceCompany


Southwestern Public Service Company(Southwestern), submitted an executedservice agreement under its open accesstransmission tariff with E Prime. Theservice agreement is for umbrella firmtransmission service.


10. PacifiCorp


PacifiCorp, tendered for filing inaccordance with 18 CFR Part 35 of theCommission’s Rules and Regulations,Amendment No. 2 to Long-Term PowerSales Agreement (91–SAO–30005)between PacifiCorp and Western andAmendment No. 1 to Long-Term PowerSales Agreement (91–SAO–30006)between PacifiCorp and Western.

Copies of this filing were supplied toWestern, the Public Utility Commissionof Oregon, Public Service Commission

of Utah, and the Washington Utilitiesand Transportation Commission.

A copy of this filing may be obtainedfrom PacifiCorp’s RegulatoryAdministration Department’s BulletinBoard System through a personalcomputer by calling (503) 464–6122(9600 baud, 8 bits, no parity, 1 stop bit).


11. Consumers Power Company


Consumers Power Company(Consumers), filed new Power SalesAgreements with the Cities of Bay City,Eaton Rapids, Hart, Portland and St.Louis, the Village of Chelsea,Southeastern Rural Electric Cooperative,Inc. and Wolverine Power SupplyCooperative, Inc.

Consumers states the Power SaleAgreements will take effect on January1, 1997, extend for a five-year term andprovide for the sale of both firm andinterruptible wholesale power on anunbundled basis. The Power SalesAgreements will replace earlierwholesale power agreements whichexpire on December 31, 1996.

Copies of the filing were served uponthe parties to the Power SalesAgreements and the Michigan PublicService Commission.


12. Soyland Power Cooperative, Inc.


Soyland Power Cooperative, Inc.(Soyland), tendered for filing with theFederal Energy Regulatory Commission(FERC) proposed changes to its initialrate filing dated September 12, 1996, inDocket No. ER96–2974–000. Theproposed effective date of the changesincluded in the filing is January 1, 1997.

The October 31, 1996, filingrepresents a decrease in the ratesSoyland charges for sales to its 21Member rural electric distributioncooperatives under their long-term, all-requirements Wholesale PowerContracts. The rate decrease arises as aresult of the adoption of a 1997 budgetthat is based on a new capital structureand changed costs arising out of theSeptember 13, 1996, buy-out, bySoyland, of its indebtedness to the RuralUtilities Service, and the restructuringof its business relationships, all asdescribed more fully in the transmittalletter accompanying Soyland’s initialrate filing with respect to the Member


Wholesale Power Contracts, filed inDocket No. ER96–2974–000 onSeptember 12, 1996.

Copies of the filing were served uponAdams Electrical Cooperative, ClayElectric Co-operative, Inc., ClintonCounty Electric Cooperative, Inc., Coles-Moultrie Electric Cooperative, Corn BeltElectric Cooperative Inc., Eastern IlliniElectric Cooperative, Edgar ElectricCooperative Association, FarmersMutual Electric Company, Illinois RuralElectric Co., Illinois Valley ElectricCooperative, Inc., M.J.M. ElectricCooperative, Inc., McDonough PowerCooperative, Menard ElectricCooperative, Monroe County ElectricCo-operative, Inc., Rural ElectricConvenience Cooperative Co., ShelbyElectric Cooperative, SouthwesternElectric Cooperative, Inc., Spoon RiverElectric Co-operative, Inc., Tri-CountyElectric Cooperative, Inc., Wayne-WhiteCounties Electric Cooperative, WesternIllinois Electrical Coop. (the 21 membercooperatives) and the Illinois CommerceCommission. In addition, copies wereserved on all parties which intervenedin Docket No. ER96–2974–000, thedocket assigned by the Commission toSoyland’s September 12, 1996, initialrate filing with respect to the MemberWholesale Power Contracts.


13. Florida Power & Light Company

[Docket No. ER97–296–000]

Take notice that on October 31, 1996,Florida Power & Light Company (FPL),tendered for filing a proposed notice ofcancellation of an umbrella serviceagreement with Gainesville RegionalUtilities for Firm Short-Termtransmission service under FPL’s OpenAccess Transmission Tariff.

FPL requests that the proposedcancellation be permitted to becomeeffective on July 9, 1996.

FPL states that this filing is inaccordance with Part 35 of theCommission’s Regulations.


14. Florida Power & Light Company

[Docket No. ER97–298–000]

Take notice that on October 31, 1996,Florida Power & Light Company (FPL),tendered for filing a proposed notice ofcancellation of an umbrella serviceagreement with Delhi Energy Services,Inc. for Firm Short-Term transmissionservice under FPL’s Open AccessTransmission Tariff.

FPL requests that the proposedcancellation be permitted to becomeeffective on July 9, 1996.

FPL states that this filing is inaccordance with Part 35 of theCommission’s Regulations.


15. New England Power Company


New England Power Company (NEP),filed a Service Agreement with AquilaPower Corporation for non-firm, point-to-point transmission service underNEP’s open access transmission tariff,FERC Electric Tariff, Original VolumeNo. 9.


16. Western Resources, Inc.

[Docket No. OA96–100–001]Take notice that on October 31, 1996,

Western Resources, Inc. tendered forfiling its compliance filing pursuant tothe Commission’s October 16, 1996,Order Accepting and RejectingInformational Filings and Requests ForWaiver Filed Under Order No. 888.


17. Edison Sault Electric Company

[Docket No. OA97–23–000]Take notice that on November 1,

1996, Edison Sault Electric Companysubmitted for filing pursuant to Section35.28(d) of the Commission’sRegulations as promulgated in OrderNo. 888, an Application For Waiver OfThe Requirements Of Order No. 889.


18. Allegheny Power ServiceCorporation on behalf of MonongahelaPower Company, the Potomac EdisonCompany, West Penn Power Company(Allegheny Power)

[Docket No. OA96–86–001]Take notice that on October 31, 1996,

Allegheny Power Service Corporationon behalf of Monongahela PowerCompany. The Potomac EdisonCompany and West Penn PowerCompany (Allegheny Power) filed aSupplement No. 1 to its informationalfiling to meet Commissionrequirements. This Supplement No. 1 toAllegheny Power’s Informational Filinggives notice to wholesale requirementscustomers of the applicable

transmission service rate if they chooseto purchase unbundled power andtransmission services upon expiration ofexisting arrangements.

Copies of the filing have beenprovided to the Public UtilitiesCommission of Ohio, the PennsylvaniaPublic Utility Commission, theMaryland Public Service Commission,the Virginia State CorporationCommission, the West Virginia PublicService Commission, and all affectedparties.


19. Pennsylvania Power & LightCompany

[Docket No. OA96–221–001]

Take notice that on October 31, 1996,Pennsylvania Power & Light Company(PP&L) tendered for filing a revisedinformational filing in compliance withthe Commission’s Order No. 888, DocketNo. RM85–8–000, 61 Fed. 61 Fed. Reg.21,540 (May 10, 1996), FERC Stats. andRegs. ¶31,036 (1996), reh’g pending, andthe Commission’s ‘‘Order Accepting andRejecting Informational Filings andRequests for Waiver Filed Under OrderNo. 888 By Public Utilities’’ issued onOctober 16, 1996, 77 FERC ¶61,025(1996). In its revised informationalfiling, PP&L sets forth the unbundledcharges for power, transmission service,ancillary services, and losses applicableunder its existing requirementswholesale electric service contractsproviding for bundled fixed rates.


Standard Paragraph

E. Any person desiring to be heard orto protest said filing should file amotion to intervene or protest with theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, D.C.20426, in accordance with Rules 211and 214 of the Commission’s Rules ofPractice and Procedure (18 CFR 385.211and 18 CFR 385.214). All such motionsor protests should be filed on or beforethe comment date. Protests will beconsidered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with the


Commission and are available for publicinspection.Lois D. Cashell,Secretary.[FR Doc. 96–29412 Filed 11–15–96; 8:45 am]BILLING CODE 6717–01–P

[Project No. 2233–027]

Portland General Electric Company,Smurfit Newsprint Corporation,Simpson Paper Company; Notice ofAvailability of EnvironmentalAssessment

November 12, 1996.An environmental assessment (EA) is

available for public review. The EA isan application for an amendment oflicense for the Willamette Falls Project.The amendment of license applicationconcerns the closure of six authorizedhydropower units of the project’sSimpson development by sealing theunits with concrete plugs and steelplates. The EA finds that approval of theapplication would not constitute amajor federal action significantlyaffecting the quality of the humanenvironment. The Willamette FallsProject is located on the WillametteRiver in West Linn and Oregon City,Oregon.

The EA was written by staff in theOffice of Hydropower Licensing,Federal Energy Regulatory Commission.Copies of the EA are available for reviewat the Commission’s Reference andInformation Center, Room 2–A, 888First Street, NE, Washington, D.C.20426. Copies can also be obtained bycalling the project manager, JonCofrancesco at (202) 219–0079.Lois D. Cashell,Secretary.[FR Doc. 96–29411 Filed 11–15–96; 8:45 am]BILLING CODE 6717–01–M


[FRL–5652–9]

Gulf of Mexico Program CitizensAdvisory Committee Meeting

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice of Meeting of theCitizens Advisory Committee of the Gulfof Mexico Program.

SUMMARY: The Gulf of Mexico Program’sCitizens Advisory Committee will holda meeting at the River House ConferenceCenter, Stennis Space Center,Mississippi.

FOR FURTHER INFORMATION CONTACT:

James D. Giattina, Director, Gulf ofMexico Program Office, Building 1103,Room 202, John C. Stennis SpaceCenter, Stennis Space Center, MS39529–6000, at (601) 688–3726.SUPPLEMENTARY INFORMATION: Aworkshop of the Citizens AdvisoryCommittee of the Gulf of MexicoProgram will be held at the River HouseConference Center, Stennis SpaceCenter, MS. The committee will meetfrom 1:00 p.m. to 5:00 p.m. onDecember 12 and from 8:30 a.m. to12:00 p.m. on December 13. Agendaitems will include: Follow-up toManagement Committee Meeting;Organizational Changes; New MembersIntroduction and Brief; Definition ofRole of the CAC; Assignments/Involvement of the CAC with FocusGroups; Discussion of FACA; and Break-out Groups for Opportunities to Meet byIssue and State. The meeting is open tothe public.

Dated: November 12, 1996.James D. Giattina,Director, Gulf of Mexico Program.[FR Doc. 96–29457 Filed 11–15–96; 8:45 am]BILLING CODE 6560–50–M

[FRL–5652–8]

Science Advisory Board; Notificationof Public Advisory Committee Meeting

Pursuant to the Federal AdvisoryCommittee Act, Public Law 92–463,notice is hereby given that theIntegrated Human Exposure Committee(IHEC) of the Science Advisory Board(SAB) will meet on December 19–20,1996 at the Environmental ProtectionAgency’s Waterside Mall Complex, 401M Street, SW, Washington, DC 20460 inRoom M2103. For convenient access,members of the public should use theEPA entrance next to the Safeway store.The meeting will start at 9:00 a.m. andend no later that 5:00 p.m. (EasternStandard Time) each day. All meetingsare open to the public. Due to limitedspace, seating at meetings will be on afirst-come basis.

Purpose of the Meeting—The mainpurpose of the meeting is to discuss andreview the EPA Office of Research andDevelopment’s (ORD) draft ExposureFactors Handbook, which is intended torevise the extant (published in March1990) version of the Handbook. TheHandbook is intended to encourageconsistency in exposure assessments,while allowing risk assessors theflexibility to tailor assessmentapproaches to specific situations. ThisHandbook provides a summary of the

available data on consumption ofdrinking water; consumption of fruits,vegetables, beef, dairy products, andfish, soil ingestion; inhalation rates; skinsurface area; lifetime; activity patterns;and body weight. Since publication ofthe 1990 document, new data onexposure factors have become available,and revision was necessary to updatethe Handbook.

The Committee is being asked toreview the revised Handbook,addressing: a) its consistency withEPA’s published Exposure Guidelines;b) usefulness of its data presentation toexposure assessors; c) the way in whichsupporting studies have been groupedvis-a-vis the exposure factors beingevaluated; and d) data interpretationand characterization of uncertainty.

For Further Information—Singlecopies of the review document can beobtained by contacting the ORD Centerfor Environmental Research Information(CERI) at (513) 569–7562. The EPAdocument numbers are: EPA/600/P–95/002Ba (for volume I); EPA/600/P–95/002Bb (for volume II); and EPA/600/P–95/002Bc (for volume III). PLEASENOTE THAT THIS DOCUMENT IS NOTAVAILABLE FROM THE SAB. Membersof the public desiring additionaltechnical information about the draftHandbook should contact Ms.Jacqueline Moya (8623), US EPA, 401 MStreet, SW, Washington, DC 20460,telephone (202) 260–2385, or by sendinga request via Internet [email protected].

Members of the public desiringadditional information about themeeting, including a draft agenda,should contact Ms. Dorothy Clark, StaffSecretary, Science Advisory Board(1400), US EPA, 401 M Street, SW,Washington DC 20460, telephone (202)260–8414, fax (202) 260–7118, orInternet at:[email protected]. Anyonewishing to make an oral presentation atthe meeting must contact Mr. SamuelRondberg, Designated Federal Officialfor the IHEC, in writing at the aboveaddress no later than 4:00 p.m.,December 10, 1996 via fax (202) 260–7118 or via Internet at:[email protected]. Therequest should identify the name of theindividual who will make thepresentation and an outline of the issuesto be addressed. At least 35 copies ofany written comments to the Committeeare to be given to Mr. Rondberg no laterthan the time of the presentation fordistribution to the Committee and theinterested public. Mr. Rondberg may becontacted by telephone at (202) 260–2559.


Dated: November 7, 1996.Donald G. Barnes,Staff Director, Science Advisory Board.[FR Doc. 96–29453 Filed 11–15–96; 8:45 am]BILLING CODE 6560–50–P

[PF–671; FRL–5572–7]

Pesticide Tolerance Petition: Notice ofFiling

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice.

SUMMARY: This notice is a summary ofa pesticide petition proposing theestablishment of a regulation forresidues of glufosinate-ammonium in oron corn and soybeans. This summarywas prepared by the petitioner.DATES: Comments, identified by thedocket number [PF–671], must bereceived on or before December 18,1996.ADDRESSES: By mail, submit writtencomments to: Public Response andProgram Resources Branch, FieldOperations Division (7506C), Office ofPesticide Programs, EnvironmentalProtection Agency, 401 M St., SW,Washington, DC 20460. In person, bringcomments to: Rm. 1132 CM #2, 1921Jefferson Davis Highway, Arlington, VA22202.

Comments and data may also besubmitted electronically by sendingelectronic mail (e-mail) to: [email protected]. Electroniccomments must be submitted as anASCII file avoiding the use of specialcharacters and any form of encryption.Comments and data will also beaccepted on disks in WordPerfect 5.1file format or ASCII file format. Allcomments and data in electronic formmust be identified by the docket number[PF–671]. Electronic comments on thisnotice may be filed online at manyFederal Depository Libraries. Additionalinformation on electronic submissionscan be found below in this document.

Information submitted as commentsconcerning this notice may be claimedconfidential by marking any part or allof that information as ‘‘ConfidentialBusiness Information’’ (CBI). CBI shouldnot be submitted through e-mail.Information marked as CBI will not bedisclosed except in accordance withprocedures set forth in 40 CFR part 2.A copy of the comment that does notcontain CBI must be submitted forinclusion in the public record.Information not marked confidentialmay be disclosed publicly by EPAwithout prior notice. All writtencomments will be available for public

inspection in Rm. 1132 at the addressgiven above, from 8 a.m. to 4:30 p.m.,Monday through Friday, excluding legalholidays.

FOR FURTHER INFORMATION CONTACT: Bymail: Joanne I. Miller, Product Manager(PM) 23, Registration Division (7505C),Environmental Protection Agency, 401M St., SW., Washington, DC 20460.Office location and telephone number:Rm. 237, CM #2, 1921 Jefferson DavisHwy., Arlington, VA 22202, (703)–305–6224; e-mail:[email protected].

SUPPLEMENTARY INFORMATION: EPA hasreceived a pesticide petition (PP)5F4578 pursuant to section 408(d) of theFederal Food, Drug and Cosmetic Act,as amended, 21 U.S.C. Section 346a(d),by the Food Quality Protection Act of1996 (Pub. L. 104–170, 110 Stat. 1489)from AgrEvo USA Company (AgrEvo),Little Falls Centre One, 2711 CentervilleRd., Wilmington, DE 19808 proposing toamend 40 CFR 180.473 by establishingtolerances for residues of the herbicide,glufosinate-ammonium: butanoic acid,2-amino-4-(hydroxymethylphosphinyl)-,monoammonium salt and itsmetabolites: 2-acetamido-4-methylphosphinico-butanoic acid and3-methylphosphinico-propionic acidexpressed as glufosinate free acidequivalents. The new tolerances wouldbe for residues of the herbicide in or onthe following raw agriculturalcommodities: field corn grain, at 0.2parts per million (ppm); field cornforage, at 4.0 ppm, field corn fodder, at6.0 ppm, soybeans, at 2.0 ppm, soybeanhulls, at 5.0 ppm, aspirated grainfractions, at 25.0 ppm, eggs, at 0.05ppm, poultry, meat at 0.05 ppm,poultry, fat at 0.05 ppm, and poultry,mbyp (meat byproducts) at 0.10 ppm.The proposed analytical method fordetermining residues is gaschromatography.

Pursuant to section 408(d)(2)(A)(i) ofthe FFDCA, as amended, AgrEvo hassubmitted the following summary ofinformation, data and arguments insupport of its pesticide petition. Thissummary was proposed by AgrEvo andEPA has not yet fully evaluated themerits of the petition. The conclusionsand arguments presented are those ofthe petitioner and not of the EPAalthough the EPA has edited thesummary for clarification as necessary.Glufosinate-ammonium is a non-selective herbicide which will be usedfor post-emergence weed control in cornand soybeans which have beengenetically modified to be resistant tothe herbicide.

I. AgrEvo Petition Summary:

A. Plant Metabolism and AnalyticalMethod

1. Plant Metabolism: The metabolismof glufosinate-ammonium in plants isadequately understood for the purposesof these tolerances. The crop residueprofile following selective use ofglufosinate-ammonium on transgeniccrops is different than that found inconventional crops. The only cropresidue found after non-selective use isthe metabolite 3-methylphosphinico-propionic acid, which is found in onlytrace amounts. With the exception ofcorn grain, the principal residueidentified in the metabolism studiesafter selective use of glufosinate-ammonium was 2-acetamido-4-methylphosphinico-butanoic acid, withlesser amounts of glufosinate and 3-methylphosphinico-propionic acid. Incorn grain, which exhibited much lowertotal radiolabelled residues than theother commodities, the principalresidue identified was 3-methylphosphinico-propionic acid,with lesser amounts of 2-acetamido-4-methylphosphinico-butanoic acid.

2. Analytical Method: There is apractical analytical method utilizing gaschromatography for detecting andmeasuring levels of glufosinate-ammonium and its metabolites in or onfood with a general limit ofquantification of 0.05 ppm that allowsmonitoring of food with residues at orabove the levels proposed in thesetolerances. This method has beenvalidated by an independent laboratoryand the petitioner has been advised thatthe EPA concluded its own successfulmethod try out.

B. Magnitude of the Residue1. Magnitude of the Residue in Plants:

Field residue trials with glufosinate-ammonium resistant corn and soybeanhave been conducted in 1993 and 1994at several different use rates and timingintervals to represent the use patternswhich would most likely result in thehighest residue. In these trials, theprimary residue in all samples was 2-acetamido-4-methylphosphinico-butanoic acid, which was found atlevels at least 2–7 times that ofglufosinate or 3-methylphosphinico-propionic acid. In field corn grain, only15 out of 301 samples analyzedexhibited residues ≥ 0.05 ppm (the limitof quantification). The tolerance valuehas been proposed at 0.2 ppm. Insoybean seed, the total meanglufosinate-ammonium derived residuesrange from 0.32 ppm to 1.89 ppm (mean= 0.92 ppm) and the tolerance has beenproposed at 2 ppm. For both corn and


soybean, the tolerances levels have beenproposed assuming the following: (1) amaximum of two applications ofglufosinate-ammonium to each crop perseason, (2) a seasonal maximum rate of0.8 pound of active ingredient per acrefor each crop, (3) the last applicationmade to corn no later than the 24 inchstage of growth and (4) the final soybeanapplication made no later than earlybloom.

2. Magnitude of the Residue inProcessed Commodities:Studies havebeen conducted to determine the levelof glufosinate derived residues found inor on the processed commodities fromglufosinate resistant corn and soybeangrain. The studies utilized treatments atsignificantly exaggerated rates toprovide the necessary test sensitivity.No concentration of glufosinate derivedresidue was found in field cornprocessed commodities which arerelevant food or feed items, i.e., flour,starch, grits, meal or oil. No processedfood tolerance is indicated for the use ofglufosinate-ammonium on glufosinate-ammonium resistant corn.

In the soybean processing studies, noresidues of parent or metabolites werefound in the crude or refined soybeanoil. Measurable levels of residue werefound in the soybean hulls and in themeal. Only the soybean hulls are to beconsidered a relevant animal feed itemand a tolerance of 5 ppm for soybeanhulls has been proposed.

3. Magnitude of the Residue inAnimals: Ruminant and poultry feedingstudies were conducted to determinethe magnitude of glufosinate-derivedresidues in the tissues and milk of cowsand the tissues and eggs of chicken henswhich were dosed for 28 consecutivedays with a mixture of parent(glufosinate-ammonium) and metabolite(2-acetamido-4-methylphosphinico-butanoic acid) in a ratio whichrepresents the terminal residue inanimal feed. No residues were detectedin meat, milk or eggs at the dosecalculated to represent the highestresidue legally allowed in livestockfeed.

As a consequence of the ruminant andpoultry feeding studies, no secondarytolerances in animal commodities abovethe limit of quantification arenecessitated as a result of the proposeduse of glufosinate-ammonium ontransgenic corn and soybean.

C. Toxicological Profile of Glufosinate-Ammonium

1. Acute Toxicity: The acute oralLD50 values for glufosinate-ammoniumtechnical ranged from 1510 to 2000 mg/kg in rats and from 200 to 464 mg/kg inmice and dogs. The acute dermal LD50

was 2000 mg/kg in rabbits and was 4000mg/kg in rats. The 4–hour rat inhalationLC50 was 1.26 mg/L in males and 2.6mg/L in females. Glufosinate-ammonium was not irritating to rabbitskin but was slightly irritating to theeyes. Glufosinate-ammonium did notcause skin sensitization in guinea pigs.Glufosinate-ammonium should beclassified as Tox Category II for oraltoxicity, Tox Category III for inhalationand dermal toxicity and Tox Category IVfor skin irritation and eye irritation.

2. Genotoxicity: No evidence ofgenotoxicity was noted in an extensivebattery of in vitro and in vivo studies.The petitioner has been advised by theEPA that negative studies determinedacceptable included Salmonella, E. coliand mouse lymphoma gene mutationassays, a mouse micronucleus assay,and an in vitro UDS assay.

3. Reproductive And DevelopmentalToxicity: Three developmental toxicitystudies were conducted with rats, atdose levels ranging from 0.5 to 250 mg/kg/day. The no observable effect levels(NOELs) for maternal anddevelopmental effects were determinedto be 10 mg/kg/day for maternal toxicityand 50 mg/kg/day for developmentaltoxicity, based on the findings ofhyperactivity and vaginal bleeding indams at 50 mg/kg/day and increasedincidence of arrested renal and ureterdevelopment in fetuses at 250 mg/kg/day.

A developmental toxicity study wasconducted in rabbits at dose levels of 0,2, 6.3 and 20 mg/kg/day. The maternalNOEL for this study was determined tobe 6.3 mg/kg/day, based on increases inabortion and premature delivery, anddecreases in food consumption andweight gain at 20 mg/kg/day. Noevidence of developmental toxicity wasnoted at any dose level; thus thedevelopmental NOEL was determined tobe 20 mg/kg/day.

A 2-generation rat reproduction studywas conducted at dietary concentrationsof 0, 40, 120 and 360 ppm. The parentalNOEL was determined to be 40 ppm (4mg/kg/day) based on increased kidneyweights at 120 ppm. The NOEL forreproductive effects was determined tobe 120 ppm (12 mg/kg/day) based onreduced numbers of pups at 360 ppm.

4. Subchronic Toxicity: A 90–dayfeeding study was conducted in Fisher344 rats at dietary concentrations of 0,8, 64, 500 and 4000 ppm. Althoughslight evidence of toxicity was observed,there were no treatment-relatedhistopathological findings at any doselevel. The NOEL for this study wasdetermined to be 8 ppm, based onincreased kidney weights at 64 ppm.

A 90–day feeding study wasconducted in NMRI mice at dietaryconcentrations of 0, 80, 320 and 1280ppm. There were no treatment-relatedpathological findings at any dose levelbut increases in absolute and relativeliver weights, serum AST, and serumpotassium levels were noted at 320 and/or 1280 ppm. Based on these findings,the NOEL for this study was determinedto be 80 ppm (16.6 mg/kg/day).

A 90–day feeding study wasconducted in beagle dogs at dietaryconcentrations of 0, 4, 8, 16, 64 and 256ppm. There were no treatment-relatedhistopathological findings at any doselevel. However, because of reducedweight gain and decreased thyroidweights at 64 and/or 256 ppm, theNOEL was determined to be 16 ppm(0.53 mg/kg/day).

5. Chronic Toxicity/Oncogenicity: A12–month feeding study was conductedin beagle dogs at dose levels of 0, 2, 5and 8.5 mg/kg/day. The NOEL was 5mg/kg/day based on clinical signs oftoxicity, reduced weight gain andmortality at 8.5 mg/kg/day.

A 2–year mouse oncogenicity studywas conducted in NMRI mice at dietaryconcentrations of 0, 20, 80 and 160(males) or 320 (females) ppm. TheNOEL was determined to be 80 ppm(10.8 and 16.2 mg/kg/day for males andfemales, respectively) based onincreased blood glucose, decreasedglutathione levels and increasedmortality in the high-dose males and/orfemales. No evidence of oncogenicitywas noted at any dose level.

A combined chronic toxicity/oncogenicity study was conducted inWistar rats for up to 130 weeks atdietary concentrations of 0, 40, 140 and500 ppm. A dose-related increase inmortality was noted in females at 140and 500 ppm, while increased absoluteand relative kidney weights were notedin 140 and 500 ppm males. Thus, theNOEL for this study was determined tobe 40 ppm (2.1 mg/kg/day). Notreatment-related oncogenic responsewas noted. However, the high-dose levelin this study did not satisfy the EPAcriteria for a Maximum Tolerated Doseand thus a data gap currently exists fora rat carcinogenicity study. Allglufosinate-ammonium tolerancespreviously established by the EPA aretime-limited because of this gap. A newrat oncogenicity study is currently beingconducted and is due to the EPA by July1, 1998.

6. Animal Metabolism: Numerousstudies have been conducted to evaluatethe absorption, distribution, metabolismand/or excretion of glufosinate-ammonium in rats. These studiesindicate that glufosinate-ammonium is


poorly absorbed (5–10%) after oraladministration and is rapidlyeliminated, primarily as parentcompound. Small amounts of themetabolites 3-methylphosphinico-propionic acid and 2-acetamido-4-methylphosphinico-butanoic acid werefound in the excreta, although the latteris believed to be a result of a reversibleacetylation and deacetylation process byintestinal bacteria.

7. Metabolite Toxicology: The primaryresidue resulting from the use ofglufosinate-ammonium in geneticallytransformed corn and soybean consistsof the metabolites 2-acetamido-4-methylphosphinico-butanoic acid and3-methylphosphinico-propionic acid. Aconsiderable number of toxicity studieshave been conducted with thesemetabolites, including developmentaltoxicity studies in rats and rabbits withboth metabolites and a 2-generation ratreproduction study with 2-acetamido-4-methylphosphinico-butanoic acid.Neither metabolite presents an acutetoxicity hazard and both weredetermined to be non-genotoxic in anextensive battery of in vitro and in vivogenotoxicity studies. Neither metabolitedemonstrated significant developmentaltoxicity to either rats or rabbits.Subchronic studies in rats, mice anddogs were conducted with bothmetabolites with no clear evidence forany specific target organ toxicity andwith NOEL’s or No Observed AdverseEffects Levels (NOAEL’s) substantiallyhigher than those seen with glufosinate-ammonium. Thus, these studies indicatethat both metabolites are less toxic thanthe parent compound and do not poseany reproductive or developmentalconcerns.

8. Endocrine Effects: No specialstudies investigating potentialestrogenic or endocrine effects ofglufosinate-ammonium have beenconducted. However, the standardbattery of required studies has beencompleted. These studies include anevaluation of the potential effects onreproduction and development, and anevaluation of the pathology of theendocrine organs following repeated orlong-term exposure. These studies aregenerally considered to be sufficient todetect any endocrine effects but no sucheffects were noted in any of the studieswith either glufosinate-ammonium or itsmetabolites.

D. Aggregate ExposureGlufosinate-ammonium is a non-

selective, post-emergent herbicide withboth food and non-food uses. As such,aggregate non-occupational exposurewould include exposures resulting fromconsumption of potential residues in

food and water, as well as from residueexposure resulting from non-crop usearound trees, shrubs, lawns, walks,driveways, etc. Thus, the possiblehuman exposure from food, drinkingwater and residential uses has beenassessed below.

1. Dietary (Food) Exposure: Forpurposes of assessing the potentialdietary exposure from food under theproposed tolerances, the petitioner hasbeen advised that the EPA has estimatedexposure based on the TheoreticalMaximum Residue Contribution(TMRC) derived from the previouslyestablished tolerances for glufosinate-ammonium on apples, grapes, tree nuts,bananas, milk and the fat, meat andmeat-by-products of cattle, goats, hogs,horses and sheep as well as theproposed tolerances for glufosinate-ammonium on field corn grain, at 0.2ppm, field corn forage, at 4.0 ppm, fieldcorn fodder, at 6.0 ppm, soybeans, at 2.0ppm, soybean hulls, at 5.0 ppm,aspirated grain fractions, at 25.0 ppm,eggs, at 0.05 ppm, poultry, meat at 0.05ppm, poultry, fat at 0.05 ppm, andpoultry, mbyp (meat byproducts) at 0.10ppm. The TMRC is obtained by using amodel which multiplies the tolerancelevel residue for each commodity byconsumption data which estimate theamount of each commodity andproducts derived from the commoditythat are eaten by the U.S. populationand various population subgroups. Inconducting this exposure assessment,the EPA has made very conservativeassumptions--100% of all commoditieswill contain glufosinate-ammoniumresidues and those residues would be atthe level of the tolerance--which resultin a large overestimate of humanexposure. Thus, in making a safetydetermination for these tolerances, theAgency took into account this veryconservative exposure assessment.

2. Dietary (Drinking Water) Exposure:There is no Maximum ContaminantLevel established for residues ofglufosinate-ammonium. The petitionerhas been advised by the EPA that allenvironmental fate data requirementsfor glufosinate-ammonium have beensatisfied. The potential for glufosinate-ammonium to leach into groundwaterhas been assessed in a total of nineterrestrial field dissipation studiesconducted in several states and invarying soil types. The degradation ofglufosinate-ammonium in these studieswas rapid, with half-lives ranging froma low of 6 to a high of 23 days. Despitethe relatively high water solubility ofglufosinate-ammonium, this compounddid not appear to leach under typicaltest conditions. This is a result of thecombination of its rapid degradation

and its tendency to bind to certain soilelements such as clay or organic matter.Based on these studies and the expectedconditions of use, the potential forfinding significant glufosinate-ammonium residues in water is minimaland the contribution of any suchresidues to the total dietary intake ofglufosinate-ammonium will benegligible.

3. Non-Dietary Exposure: As a non-selective, post-emergent herbicide,homeowner use of glufosinate-ammonium will consist primarily ofspot spraying of weeds around trees,shrubs, walks, driveways, flower beds,etc. There will be minimal opportunityfor post-application exposure sincecontact with the treated weeds willrarely occur. Thus, any exposures toglufosinate-ammonium resulting fromhomeowner use will result from dermalexposure during the application andwill be limited to adults, not to infantsor children. These exposures are notexpected to pose any acute toxicityconcerns. Furthermore, based on the USEPA National Home and GardenPesticide Use Survey (RTI/5100/17–01F,March 1992), the average homeowner isexpected to use non-selective herbicidesonly about four times a year. Thus, theseexposures would not normally befactored into a chronic exposureassessment.

E. Cumulative Effects

The potential for cumulative effects ofglufosinate-ammonium and othersubstances that have a commonmechanism of toxicity must also beconsidered. The precise mechanism ofaction for the toxic effects ofglufosinate-ammonium in animals is notknown but is believed to result, at leastin part, from interference with theneurotransmitter function of glutamate,to which it is a close structural analog.No other registered active ingredientsare known to have a similar mechanismof action. Thus, no cumulative effectswith other substances are anticipated.Furthermore, the residues on transgeniccrops will consist primarily of themetabolites of glufosinate-ammonium,not glufosinate-ammonium itself. Thesemetabolites are less toxic thanglufosinate-ammonium and, since theyare not structural analogs of glutamate,they should not cause the same effects.Thus, consideration of a commonmechanism of toxicity is not appropriateat this time and only the potential risksof glufosinate-ammonium need to beconsidered in its aggregate exposureassessment.


F. Safety Determinations1. U.S. Population in General: Based

on a complete and reliable toxicitydatabase, the EPA has adopted an RfDvalue of 0.02 mg/kg/day using the NOELof 2.1 mg/kg/day from the chronic rattoxicity study and a 100–fold safetyfactor. Using the conservative exposureassumptions described above, thepetitioner has been advised that the EPAhas concluded that aggregate exposureto glufosinate-ammonium from thepreviously established and the proposedtolerances will utilize 6.1 percent of theRfD for the U.S. population. There isgenerally no concern for exposuresbelow 100 percent of the RfD becausethe RfD represents the level at or belowwhich daily aggregate dietary exposureover a lifetime will not pose appreciablerisks to human health. Therefore, thereis a reasonable certainty that no harmwill result from aggregate exposure toglufosinate-ammonium residues to theU.S. population in general.

2. Infants and Children: In assessingthe potential for additional sensitivity ofinfants and children to residues ofglufosinate-ammonium, one shouldconsider data from developmentaltoxicity studies in the rat and rabbit anda 2–generation reproduction study inthe rat. The developmental toxicitystudies are designed to evaluate adverseeffects on the developing organismresulting from pesticide exposureduring pre- natal development.Reproduction studies provideinformation relating to reproductive andother effects on adults and offspringfrom pre-natal and post-natal exposureto the pesticide.

Three developmental toxicity studiesin rats (including pre- and post-natalphases), a developmental toxicity studyin rabbits, and a 2-generation ratreproduction study have beenconducted with glufosinate-ammonium.No evidence of developmental toxicitywas noted in rabbits, even at thematernally toxic dose level of 20 mg/kg/day. No developmental or reproductiveeffects were noted in rats except atparentally toxic dose levels. The NOEL’sfor maternal and developmental toxicityin the rat developmental toxicity studieswere determined to be 10 mg/kg/dayand 50 mg/kg/day, respectively, basedon findings of hyperactivity and vaginalbleeding in dams at 50 mg/kg/day andincreased incidence of arrested renaland ureter development in fetuses at250 mg/kg/day. The parental andreproductive NOEL’s in the 2-generationrat reproduction study were determinedto be 40 ppm (4 mg/kg/day) and 120ppm (12 mg/kg/day), respectively, basedon increased parental kidney weights at

120 ppm and decreased numbers ofpups at 360 ppm. In all cases, thereproductive and developmentalNOEL’s were greater than or equal to theparental NOEL’s, thus indicating thatglufosinate-ammonium does not poseany increased risk to infants or children.

FFDCA section 408 provides that EPAmay apply an additional safety factor forinfants and children in the case ofthreshold effects to account for pre- andpost-natal toxicity and the completenessof the database. Based on the currenttoxicological data requirements, thedatabase relative to pre- and post-nataleffects for children is complete. Further,the NOEL at 2.1 mg/kg/day from thechronic rat study with glufosinate-ammonium, which was used tocalculate the RfD (discussed above), isalready lower than the NOEL’s from thereproductive and developmental studieswith glufosinate-ammonium by a factorof at least 6–fold. Therefore, anadditional safety factor is not warrantedand an RfD of 0.02 mg/kg/day isappropriate for assessing aggregate riskto infants and children.

Using the highly conservativeexposure assumptions described above,the petitioner has been advised that EPAhas concluded that the percent of theRfD that will be utilized by aggregateexposure to residues of glufosinate-ammonium ranges from 13.6 percent forchildren 1 to 6 years old, up to 28.3percent for non-nursing infants (≤1 yearold). Using more realistic assumptionsconcerning anticipated residues andpercent crop treated, the percent of RfDutilized would be no more than 5% forinfants or children. Therefore, based onthe completeness and reliability of thetoxicity data and a comprehensiveexposure assessment, it may beconcluded that there is a reasonablecertainty that no harm will result toinfants and children from aggregateexposure to glufosinate-ammoniumresidues.

G. International TolerancesGlufosinate-ammonium as a non-

selective herbicide is currentlyregistered in more than 60 countriesworldwide for both non-crop use as wellas for weed control and desiccation innumerous conventional crops, includingcorn and soybeans. The following CodexAlimentarius Commission (Codex)Maximum Residue Levels (MRLs) forglufosinate-ammonium on conventionalcorn and soybeans have beenestablished: maize, at 0.1 ppm, maizeforage, at 0.2 ppm and soya bean (dry)at 0.1 ppm. These tolerances are fornon-selective uses such as no-tillsystems or post-directed applications onnon-transgenic crops.

The U.S. tolerances for corn andsoybean commodities are beingproposed at higher levels based onresidue trial data submitted by thepetitioner. The residue trials wereconducted in the U.S. on transgeniccorn and soybeans according to theproposed U.S. label parameters for thesecrops. These use parameters(application rate, application timing,crop growth stage, pre-harvest intervaletc.) differ for direct application use ontransgenic crops than for non-selectiveuse on conventional crops. Based on theU.S. data, the petitioner’s parentcompany, AgrEvo GmbH of Berlin,Germany has petitioned the JointMeeting of the Food and AgricultureOrganization Panel of Experts onPesticide Residues in Food and theEnvironment and the World HealthOrganization Expert Group on PesticideResidues (JMPR) to establish CodexMRLs for use on transgenic corn andsoybeans that are identical to thetolerances proposed for thesecommodities in the U.S. It is anticipatedthat the JMPR will consider andestablish the MRLs for glufosinate-ammonium on transgenic crops during1997–1998.

II. Administrative Matters

Interested persons are invited tosubmit comments on the this notice offiling. Comments must bear a notationindicating the document controlnumber, [PF–671]. All writtencomments filed in response to thispetition will be available in the PublicResponse and Program ResourcesBranch, at the address given above from8 a.m. to 4 p.m., Monday throughFriday,except legal holidays.

A record has been established for thisnotice under docket number [PF–671](including comments and datasubmitted electronically as describedbelow). A public version of this record,including printed, paper versions ofelectronic comments, which does notinclude any information claimed as CBI,is available for inspection from 8 a.m. to4:30 p.m., Monday through Friday,excluding legal holidays. The publicrecord is located in Rm. 1132 of thePublic Response and Program ResourcesBranch, Field Operations Division(7506C), Office of Pesticide Programs,Environmental Protection Agency,Crystal Mall #2, 1921 Jefferson DavisHighway, Arlington, VA.

Electronic comments can be sentdirectly to EPA at:

[email protected]

Electronic comments must besubmitted as an ASCII file avoiding the


use of special characters and any formof encryption.

The official record for this notice, aswell as the public version, as describedabove will be kept in paper form.Accordingly, EPA will transfer allcomments received electronically intoprinted, paper form as they are receivedand will place the paper copies in theofficial notice record which will alsoinclude all comments submitted directlyin writing. The official notice record isthe paper record maintained at theaddress in ‘‘ADDRESSES’’ at thebeginning of this document.

List of Subjects in 40 CFR Part 180Environmental protection,

Administrative practice and procedure,Agricultural commodities, Pesticidesand pests, Reporting and recordkeepingrequirements.


Peter Caulkins,Acting Director, Registration Division, Officeof Pesticide Programs.

[FR Doc. 96–29576 Filed 11–15–96; 8:45 am]BILLING CODE 6560–50–F

[OPPTS–44632; FRL–5573–3]

TSCA Chemical Testing; Receipt ofTest Data


SUMMARY: This notice announces EPA’sreceipt of test data on glycidyl

methacrylate (GMA) (CAS No. 106–91–2). These data were submitted pursuantto an enforceable testing consentagreement/order issued by EPA undersection 4 of the Toxic SubstancesControl Act (TSCA). Publication of thisnotice is in compliance with section4(d) of TSCA.FOR FURTHER INFORMATION CONTACT:Susan B. Hazen, Director,Environmental Assistance Division(7408), Office of Pollution Preventionand Toxics, Environmental ProtectionAgency, Rm. E–543B, 401 M St., SW.,Washington, DC 20460, (202) 554–1404,TDD (202) 554–0551; e-mail: [email protected] INFORMATION: Under 40CFR 790.60, all TSCA section 4enforceable consent agreements/ordersmust contain a statement that results oftesting conducted pursuant to testingenforceable consent agreements/orderswill be announced to the public inaccordance with section 4(d).

I. Test Data Submissions

Test data for glycidyl methacrylatewere submitted by Keller and HeckmanLLP on behalf of the Dow ChemicalCompany pursuant to a TSCA section 4enforceable testing consent agreement/order at 40 CFR 799.5000 and werereceived by EPA on September 17, 1996.The submission includes a final reportentitled ‘‘Glycidyl Methacrylate:Thirteen-Week Vapor InhalationToxicity Study in Fischer 344 Rats.’’GMA, a glycidol derivative, is an epoxyresin additive used in paint coatingformulations and adhesive applications.

EPA has initiated its review andevaluation process for this datasubmission. At this time, the Agency isunable to provide any determination asto the completeness of the submission.

II. Public Record

EPA has established a public recordfor this TSCA section 4(d) receipt ofdata notice (docket number OPPTS–44632). This record includes a copy ofthe study reported in this notice. Therecord is available for inspection from12 noon to 4 p.m., Monday throughFriday, except legal holidays, in theTSCA Nonconfidential InformationCenter (also known as the TSCA PublicDocket Office), Rm. B–607 NortheastMall, 401 M St., SW., Washington, DC20460.

Authority: 15 U.S.C. 2603.

List of Subjects

Environmental protection, Test data.Dated: November 6, 1996.

Paul J. Campanella,

Acting Director, Chemical Control Division,Office of Pollution Prevention and Toxics.

[FR Doc. 96–29454 Filed 11–15–96; 8:45 am]BILLING CODE 6560–50–F

FEDERAL COMMUNICATIONSCOMMISSION

Hearing Designation Order

The Commission has before it forconsideration the following matter:

Licensee City/State MM docketNo.

Desert Broadcasting Corporation ............................................................................................................ Desert Center, CA .............. 96–221

(Regarding the renewal application forStation KZAL(FM))

Pursuant to Section 309(e) of theCommunications Act of 1934, asamended, Desert BroadcastingCorporation’s application for renewal oflicense has been designated for hearingconcerning the following issues:

1. To determine the effect of EugeneB. White’s state convictions on the basicqualifications of Desert BroadcastingCorporation.

2. To determine whether DesertBroadcasting Corporation has violatedSection 1.65(c) of the Commission’sRules.

3. To determine whether DesertBroadcasting Corporation has violatedSection 73.3615 of the Commission’sRules.

4. To determine whether DesertBroadcasting Corporation has violatedSections 73.1740 and/or 73.1750 of theCommission’s Rules.

5. To determine whether DesertBroadcasting Corporation has thecapability and intent to expeditiouslyresume the broadcast operations ofKZAL(FM), consistent with theCommission’s Rules.

6. To determine, in light of theevidence adduced pursuant to thepreceding issues, whether grant of thesubject renewal of license applicationwould serve the public interest,convenience and necessity.

A copy of the complete HearingDesignation Order in this proceeding isavailable for inspection and copyingduring normal business hours in the

FCC Dockets Branch (Room 320), 1919M Street, N.W., Washington, D.C. Thecomplete text may also be purchasedfrom the Commission’s duplicatingcontractor, International TranscriptionService, 2100 M Street, N.W., Suite 140,Washington, D.C. 20037 (telephonenumber 202–857–3800).

Federal Communications CommissionWilliam F. Caton,Acting Secretary.[FR Doc. 96–29399 Filed 11–15–96; 8:45 am]BILLING CODE 6712–01–P


[DA 96–1752]

Streamlining the International Section214 Authorization Process and TariffRequirements

AGENCY: Federal CommunicationsCommission.ACTION: Notice.

SUMMARY: On October 22, 1996, theInternational Bureau of the FederalCommunications Commission adoptedan Order on Reconsideration modifyingthe Order adopting the exclusion list inthis proceeding (Exclusion List Orderadopted on July 26, 1996). TheCommission modified the exclusion listby removing CANUS–1 from theexclusion list consistent with a letterfrom the State Department. Thisdecision should make the market forcable access more competitive, leadingto lower prices for U.S. carriers’ endusers.EFFECTIVE DATE: October 22, 1996.FOR FURTHER INFORMATION CONTACT:James Hedlund, Attorney-Advisor,Policy and Facilities Branch,Telecommunications Division,International Bureau, (202) 418–1399.SUPPLEMENTARY INFORMATION: This is asummary of the International Bureau’sOrder adopted on October 22, 1996 andreleased on October 24, 1996 (DA 96–1752). The full text of this Order isavailable for inspection and copyingduring normal business hours in theFCC Reference Center (Room 239), 1919M Street, N.W., Washington, D.C. 20554.The complete text of this Order alsomay be purchased from theCommission’s copy contractor,International Transcription Service,Inc., 2100 M Street, N.W., Suite 140,Washington, D.C. 20037 (202) 857–3800.The Order also is available as a text fileat http://www.fcc.gov/Bureaus/International/Orders/da961752.txt. It isavailable as a WordPerfect file at http://www.fcc.gov/Bureaus/International/Orders/da961752.wp.

Summary of Order1. On February 29, 1996, the Federal

Communications Commission adoptedrules to streamline the internationalSection 214 authorization process andtariff requirements. (Report and Order,Streamlining the International Section214 Authorization Process and TariffRequirements, IB Docket No. 95–118,FCC 96–79, released March 13, 1996, 61FR 15724 (April 9, 1996)). The Reportand Order adopted procedures forissuing global, rather than country-specific and facility-specific, Section214 authorizations to qualifiedapplicants. As part of the new

procedures, the International Bureauwas required to establish and maintainan exclusion list identifying restrictionson providing service using particularfacilities or to particular countries forthose carriers receiving a global Section214 authorization. On July 6, 1996, theCommission adopted the exclusion list.(Exclusion List Order adopted on July26, 1996, 61 FR 50023 (September 24,1996)).

2. On October 22, 1996, the StateDepartment notified the Bureau that itwould support the removal of CANUS–1 from the exclusion list, provided thatthe conditions of the cable landinglicense granted to OPTEL are notmodified. In particular, the StateDepartment requested the Commissionto continue to require that the licenseeshall not sell or lease any capacity onCANUS–1, including capacity for non-common carrier services, to Teleglobe,its affiliates or any partnerships or jointventures in which Teleglobe is aparticipant, unless and until Teleglobe,its affiliates or partnerships or jointventures in which Teleglobe is aparticipant has requested and receivedprior Commission approval for the saleor lease of any such capacity. Further,the State Department requested theCommission to continue to requireTeleglobe to obtain specific Section 214authorization in order to acquire or usecapacity on CANUS–1 for commoncarrier services.

3. Now that the State Departmentsupports the removal of CANUS–1 fromthe exclusion list, the Commissionfound that there are no ‘‘imperativecircumstances,’’ as that term is used inthe Streamlining Order, warranting theplacement of the facility on theexclusion list. The Commission notedthat the removal of CANUS–1 from theexclusion list does not in any waymodify the conditions placed on OPTELin the cable landing license. Theremoval of CANUS–1 from theexclusion list will reduce the regulatoryburden on U.S. carriers wishing toobtain capacity on this facility. Thisdecision should make the market forcable access more competitive, leadingto lower prices for U.S. carriers’ endusers.

Ordering Clauses4. Accordingly, it is ordered that

pursuant to Section 1.113 of theCommission’s Rules, 47 CFR 1.113, theExclusion List Order adopted on July 26,1996, is modified to the extent detailedabove.

5. Accordingly, it is ordered that theExclusion List attached to this order,which identifies restrictions onproviding service using particular

facilities or to particular countries forthose carriers receiving a global Section214 authorization, is hereby adopted.

6. This Order is issued under 0.261 ofthe Commission’s Rules and is effectiveupon adoption. Petitions forreconsideration under § 1.106 orapplications for review under § 1.115 ofthe Commission’s Rules may be filedwithin 30 days of the date of the publicnotice of this Order (see 47 CFR1.4(b)(2)).Federal Communications CommissionDiane J. Cornell,Chief, Telecommunications Division,International Bureau.

Attachment—International Section 214Authorizations

Exclusion List as of October 22, 1996The following is a list of countries and

facilities not covered by grant of globalSection 214 authority under § 63.18(e)(1) ofthe Commission’s Rules. 47 CFR 63.18(e)(1).In addition, the facilities listed shall not beused by U.S. carriers authorized under§ 63.01 of the Commission’s Rules, unless thecarrier’s Section 214 authorizationspecifically lists the facility. Carriers desiringto serve countries or use facilities listed asexcluded hereon shall file a separate Section214 application pursuant to § 63.18(e)(6) ofthe Commission’s Rules.

CountriesCuba (applications for service to this

country shall comply with the separate filingrequirements of the Commission’s PublicNotice Report No. I–6831, dated July 27,1993, ‘‘FCC to Accept Applications forService to Cuba.’’)

FacilitiesAll non-U.S. licensed Cable and Satellite

Systems Except:

Foreign Cable SystemsAden-DjiboutiAPCAPCNAPHRODITE 2ARIANNE 2ASEANB–M–PBrunei-SingaporeCADMOSCANTAT–3CARACCELTICChina-JapanCIOSDenmark-Russia 1ECFSEMOS–1EURAFRICAGermany-Denmark 1Germany-Sweden No. 4Germany-Sweden No. 5H–J–KHONTAI–2ITURKATTEGAT–1Kuantan-Kota KinabaluLATVIA-SWEDEN


Malaysia-ThailandMarseille/Palermo LinkMAT–2ODINPENCAN–5R–J–KRIOJASAT–2SEA–ME–WE 2SEA–ME–WE 3T–V–HTAGIDE 2TASMAN 2UGARITUK–BEL 6UK-Denmark 4UK-Germany 5UK-Netherlands 12UK-Netherlands 14UK-Spain 4UNISUR

This list is subject to change by theCommission when the public interestrequires. Before amending the list, theCommission will first issue a public noticegiving affected parties the opportunity forcomment and hearing on the proposedchanges. The Commission will then releasean order amending the exclusion list. Thislist also is subject to change upon issuanceof an Executive Order. See Streamlining theSection 214 Authorization Process and TariffRequirements, IB Docket No. 95–118 FCC 96–79, released March 13, 1996.

For additional information, contact theInternational Bureau’s TelecommunicationsDivision, Policy and Facilities Branch, (202)418–1460.


FEDERAL MARITIME COMMISSION

Notice of Agreement(s) Filed

The Federal Maritime Commissionhereby gives notice of the filing of thefollowing agreement(s) pursuant tosection 5 of the Shipping Act of 1984.

Interested parties may inspect andobtain a copy of each agreement at theWashington, D.C. Office of the FederalMaritime Commission, 800 NorthCapitol Street NW., 9th Floor. Interestedparties may submit comments on eachagreement to the Secretary, FederalMaritime Commission, Washington,D.C. 20573, within 10 days after the dateof the Federal Register in which thisnotice appears. The requirements forcomments are found in section 572.603of Title 46 of the Code of FederalRegulations. Interested persons shouldconsult this section beforecommunicating with the Commissionregarding a pending agreement.

Agreement No.: 202–008900–060.Title: The ‘‘8900’’ Lines Agreement.Parties: A.P. Moller-Maersk Line,

DSR–Senator Lines, The NationalShipping Company of Saudi Arabia,

P&O Containers, Ltd., Sea-Land Service,Inc., United Arab Shipping Company(S.A.G.).

Synopsis: The proposed modificationmakes several technical corrections tothe Agreement: (1) deletes the referenceto Agreement No. 203–011408; (2)revises the geographic scope in ArticleV(1) to correspond with the scope inArticle IV of the Agreement; (3) revisesArticle VI to clarify who will chairmeetings in the absence of the ExecutiveDirector; (4) revises Articles VII and XIIIby substituting ‘‘e-mail’’ for ‘‘telex’’; (5)revises paragraphs J(1), J(2) and L ofAppendix B by substituting ‘‘ExecutiveDirector’’ for ‘‘Vice Chairman’’; and (6)revises paragraph M of Appendix B toprovide for arbitration in New Jerseyinstead of New York.

Agreement No.: 224–200229–003.Title: Manchester Terminal

Corporation/Empire Scott Stevedoring,Inc., Terminal Agreement.

Parties: Manchester TerminalCorporation (‘‘MTC’’), Empire ScottStevedoring, Inc. (‘‘Empire’’).

Synopsis: The proposed modificationis a renegotiated contract between MTCand Empire. MTC assigns the right toEmpire Scott Stevedoring, Inc., to load,unload, handle and render other relatedservices to cargo and containers movingthrough MTC’s facilities. TheAgreement also reflects a name changeof Scott Marine Services, Inc., to EmpireScott Stevedoring, Inc.

Agreement No.: 224–200972–001.Title: Port Of Houston/TMM/HLC

Terminal Agreement.Parties: Port of Houston Authority,

Transportation Maritima Mexicana, S.A.de C.V. (‘‘TMM’’), Hapag-Lloyd(America), Inc. (‘‘HLC’’).

Synopsis: The proposed modificationamends section IX of the Agreement tospecify that storage charges will bebased on a reasonable number ofcontainers and chassis. The Agreementis further amended in section VII tospecify that the Port, under specialconditions, will reimburse TMM or HLCfor certain expenses.

Agreement No.: 224–201004.Title: Indiana’s International Port/

Burns Harbor General Cargo TerminalOperating Agreement.

Parties: Indiana Port Commission,Indiana Stevedoring and DistributionCorporation (‘‘ISD’’).

Synopsis: The Agreement providesthat ISD will operate and maintainterminal facilities, for all public usersdesiring to use ISD’s services, atIndiana’s International Port/BurnsHarbor for an initial period of ten yearsbeginning January 1, 1999.

By Order of the Federal MaritimeCommission.

Dated: November 12, 1996.Joseph C. Polking,Secretary.[FR Doc. 96–29424 Filed 11–15–96; 8:45 am]BILLING CODE 6730–01–M

FEDERAL RESERVE SYSTEM

Formations of, Acquisitions by, andMergers of Bank Holding Companies

The companies listed in this noticehave applied to the Board for approval,pursuant to the Bank Holding CompanyAct of 1956 (12 U.S.C. 1841 et seq.)(BHC Act), Regulation Y (12 CFR Part225), and all other applicable statutesand regulations to become a bankholding company and/or to acquire theassets or the ownership of, control of, orthe power to vote shares of a bank orbank holding company and all of thebanks and nonbanking companiesowned by the bank holding company,including the companies listed below.

The applications listed below, as wellas other related filings required by theBoard, are available for immediateinspection at the Federal Reserve Bankindicated. Once the application hasbeen accepted for processing, it will alsobe available for inspection at the officesof the Board of Governors. Interestedpersons may express their views inwriting on the standards enumerated inthe BHC Act (12 U.S.C. 1842(c)). If theproposal also involves the acquisition ofa nonbanking company, the review alsoincludes whether the acquisition of thenonbanking company complies with thestandards in section 4 of the BHC Act,including whether the acquisition of thenonbanking company can ‘‘reasonablybe expected to produce benefits to thepublic, such as greater convenience,increased competition, or gains inefficiency, that outweigh possibleadverse effects, such as undueconcentration of resources, decreased orunfair competition, conflicts ofinterests, or unsound banking practices’’(12 U.S.C. 1843). Any request for ahearing must be accompanied by astatement of the reasons a writtenpresentation would not suffice in lieu ofa hearing, identifying specifically anyquestions of fact that are in dispute,summarizing the evidence that wouldbe presented at a hearing, and indicatinghow the party commenting would beaggrieved by approval of the proposal.Unless otherwise noted, nonbankingactivities will be conducted throughoutthe United States.

Unless otherwise noted, commentsregarding each of these applicationsmust be received at the Reserve Bank


1 See Department of the Treasury, ‘‘Treasury Taxand Loan Depositaries and Payment of FederalTaxes; Proposed Rule,’’ 61 FR 51185–51194,September 30, 1996.

2 See ‘‘Federal Reserve Policy Statement onPayments System Risk,’’ section I.A.

3 Treasury investments for which advance noticeis given are posted to depository institutions’accounts at the opening of the Fedwire FundsTransfer System (currently 8:30 a.m. Eastern Time),while same-day investments are posted as soon asthey are processed, but by no later than 1:00 p.m.

4 Posting times for payments currently posted atthe opening of the Fedwire Funds Transfer Systemmay require modification when this opening timeis moved to 12:30 a.m. Eastern Time in 1997.

indicated or the offices of the Board ofGovernors not later than December 12,1996.

A. Federal Reserve Bank of Atlanta(Zane R. Kelley, Vice President) 104Marietta Street, N.W., Atlanta, Georgia30303:

1. The Colonial BancGroup, Inc.,Montgomery, Alabama; to merge withD/W Bankshares, Inc., Dalton, Georgia,and thereby indirectly acquire Dalton/Whitfield Bank & Trust, Dalton, Georgia.

B. Federal Reserve Bank of St. Louis(Randall C. Sumner, Vice President) 411Locust Street, St. Louis, Missouri 63166:

1. State Financial Services, Inc.,Harrodsburg, Kentucky; to become abank holding company by acquiringState Bank & Trust Company,Harrodsburg, Kentucky.

Board of Governors of the Federal ReserveSystem, November 12, 1996.William W. Wiles,Secretary of the Board.[FR Doc. 96–29401 Filed 11-15-96; 8:45 am]BILLING CODE 6210-01-F

[Docket No. R–0937]

Federal Reserve Payment System RiskPolicy; Modified Procedures forMeasuring Daylight Overdrafts

AGENCY: Board of Governors of theFederal Reserve System.ACTION: Policy Statement.

SUMMARY: The Board has adoptedchanges to the procedures for measuringdaylight overdrafts. Posting times forTreasury investments resulting fromelectronic federal tax payments havebeen added to these procedures.EFFECTIVE DATE: November 18, 1996.FOR FURTHER INFORMATION CONTACT: PaulBettge, Manager (202/452–3174), HeidiRichards, Senior Financial ServicesAnalyst (202/452–2598), Division ofReserve Bank Operations and PaymentSystems; for the hearing impaired only:Telecommunications Device for theDeaf, Dorothea Thompson (202/452–3544).


Background

The U.S. Department of the Treasuryis currently implementing the ElectronicFederal Tax Payment System (EFTPS) tofacilitate electronic payment of taxes.The transition of taxpayers who arecurrently required to pay taxeselectronically to the new EFTPS systemis expected to occur over the nextseveral months.

Most tax payments processed throughthe EFTPS are expected to be settled

through the Automated Clearinghouse(ACH). ACH tax payments processedthrough the EFTPS will be reinvestedeach day through the Federal Reserve’sTreasury Tax and Loan (TT&L) systeminto depository institutions’ TT&Laccounts.1 Those banks choosing toreceive Treasury funds as note optionbanks will receive EFTPS investments,which are TT&L credits to their FederalReserve accounts for the amount of taxpayments settled via ACH on a givenday. Banks that do not choose to holdTreasury investments (remittance optionand non-TT&L depository institutions)will not receive EFTPS investments.EFTPS investments provide a means forthe Treasury Department to invest taxpayments remitted to the Treasuryelectronically which, under thetraditional paper-based tax paymentsystem, would have been retained bydepository institutions and credited totheir TT&L accounts.

The Board’s initial policy statementaimed at controlling daylight overdraftsbecame effective in 1986 (50 FR 21120,May 22, 1985). The Board’s PolicyStatement on Payments System Riskestablishes maximum limits (caps) andfees on daylight overdrafts in accountsof depository institutions at FederalReserve Banks. Daylight overdrafts aremeasured according to a set of ‘‘postingrules’’ established by the Board, whichcomprise a schedule for the posting ofdebits and credits to institutions’Federal Reserve accounts for differenttypes of payments.2 Currently, EFTPSinvestments are not explicitly includedin this schedule, and thus would beposted after the close of the FedwireFunds Transfer System (6:30 p.m.Eastern Time) unless the Boarddetermined otherwise.3

Analysis of Daylight Overdraft PostingTimes

The Board reviewed potentialdaylight overdraft posting times forEFTPS investments in light of itsoriginal objectives in designing theposting rules. These objectives includedreducing intraday float, permittingstraightforward monitoring and controlof institutions’ cash balances during theday, and reflecting the legal rights andobligations of parties to payments.

Posting time options for EFTPSinvestments considered by the Boardincluded (all times are Eastern Time):(1) post all EFTPS investments at theopening of the Fedwire Funds TransferSystem (currently 8:30 a.m.); (2) postEFTPS investments resulting from ACHcredit tax payments at the opening ofthe Fedwire Funds Transfer System andthose from ACH debit tax payments at11:00 a.m.; (3) post all EFTPSinvestments at 11:00 a.m.; and (4) postall EFTPS investments at 1:00 p.m.

The Board has determined that thesecond option is most consistent withits objectives in establishing thedaylight overdraft posting rules. Thisoption would synchronize the EFTPSinvestments with the posting of thecorresponding ACH tax payments(currently 8:30 a.m. for ACH creditoriginations and 11:00 a.m. for ACHdebit originations).4 The impact of theEFTPS payments on the intradayFederal Reserve account balances anddaylight overdrafts of depositoryinstitutions would be minimized,without creating intraday float orcompromising the ability of institutionsto monitor and control their accountbalances.

Paperwork Reduction ActIn accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. ch.3506; 5 CFR 1320 Appendix A.1), theBoard reviewed the policy statementunder the authority delegated to theBoard by the Office of Management andBudget. No collections of informationpursuant to the Paperwork ReductionAct are contained in the policystatement.

Policy Statement on Payments SystemRisk

The ‘‘Federal Reserve PolicyStatement on Payments System Risk,’’section I.A., under the heading‘‘Modified Procedures for MeasuringDaylight Overdrafts’’ (57 FR 47104,October 14, 1992) is amended asfollows:

Opening Balance (Previous Day’sClosing Balance)

Post at the Opening of Fedwire FundsTransfer System:

+/¥Government and commercialACH credit transactions.

+Treasury Electronic Federal TaxPayment System (EFTPS) investmentsfrom ACH credit transactions.

+Advance-notice Treasuryinvestments.


+Treasury state and local governmentseries (SLGs) interest and redemptionpayments.

+Treasury checks, postal moneyorders, local Federal Reserve Bankchecks, EZ-Clear savings bondredemptions in separately sorteddeposits.* * * * *

Post at 11:00 a.m. Eastern Time:+/¥ACH debit transaction.+EFTPS investments from ACH debit

transactions* * * * *

By order of the Board of Governors of theFederal Reserve System, November 8, 1996.Barbara R. Lowrey,Associate Secretary of the Board.[FR Doc. 96–29289 Filed 11–15–96; 8:45 am]BILLING CODE 6210–01–P

FEDERAL TRADE COMMISSION

Granting of Request for EarlyTermination of the Waiting PeriodUnder the Premerger NotificationRules

Section 7A of the Clayton Act, 15U.S.C. § 18a, as added by Title II of theHart-Scott-Rodino AntitrustImprovements Act of 1976, requirespersons contemplating certain mergersor acquisitions to give the Federal TradeCommission and the Assistant AttorneyGeneral advance notice and to waitdesignated periods beforeconsummation of such plans. Section7A(b)(2) of the Act permits the agencies,in individual cases, to terminate thiswaiting period prior to its expiration

and requires that notice of this action bepublished in the Federal Register.

The following transactions weregranted early termination of the waitingperiod provided by law and thepremerger notification rules. The grantswere made by the Federal TradeCommission and the Assistant AttorneyGeneral for the Antitrust Division of theDepartment of Justice. Neither agencyintends to take any action with respectto these proposed acquisitions duringthe applicable waiting period.

TRANSACTIONS GRANTED EARLY TERMINATION BETWEEN 10/14/96 AND 10/25/96

Acquiring person/acquired person/acquired entity PMN No. Dateterminated

General Electric Company, First Colony Corporation, First Colony Corporation ................................................................ 96–2914 10/15/96Mississippi Chemical Corporation, First Mississippi Corporation, First Mississippi Corporation ........................................ 96–2961 10/15/96W. Don Cornwell, Joel I. Ferguson, WLAJ–TV ................................................................................................................... 96–3005 10/15/96Cox Enterprises, Inc., Tele-Communications, Inc., Tele-Communications, Inc .................................................................. 96–3051 10/15/96Tele-Communications, Inc., Cox Enterprises, Inc., Cox Enterprises, Inc ........................................................................... 96–3052 10/15/96PXRE Corporation, Transnational Re Corporation, Transnational Re Corporation ............................................................ 96–3053 10/15/96Reliastar Financial Corp., Kinnard Investments, Inc., PrimeVest Financial Services, Inc .................................................. 96–3056 10/15/96Premier Parks Inc., Mr. Charles R. Wood, Storytown USA, Inc ......................................................................................... 96–3058 10/15/96The Gillette Company, Duracell International, Inc., Duracell International, Inc .................................................................. 96–3059 10/15/96STET—Societa Finanziaria Telefonica, p.a., Concentric Network Corporation, Concentric Network Corporation ............ 96–3067 10/15/96KELP—1987 Limited Partnership, Gaye Beasley, The Patrician Financial Company ........................................................ 96–3073 10/15/96Energy Ventures, Inc., Parker Drilling Co., Parker Drilling Co ............................................................................................ 96–3081 10/15/96Parker Drilling Company, Energy Ventures, Inc., Mallard Bay Drilling, Inc ........................................................................ 96–3082 10/15/96Hicks, Muse, Tate & Furst Equity Fund III, L.P., American Home Products Corporation, American Home Products Cor-

poration ............................................................................................................................................................................. 97–0009 10/15/96Welsh, Carson, Anderson & Stowe VI, L.P., Behavioral Healthcare Corporation, Behavioral Healthcare Corporation .... 97–0010 10/15/96Federated Department Stores, Inc., Dayton Hudson Corporation, Marshal Field Stores, Inc ............................................ 97–0012 10/15/96Steven L. Volla, The Bucks County Health System, The Bucks County Health System ................................................... 97–0013 10/15/96Northwestern Public Service Company, CGI Holdings, Inc., CGI Holdings, Inc ................................................................. 97–0014 10/15/96Scott K. Ginsburg, Estate of Willet H. Brown, The Brown Organization ............................................................................. 97–0020 10/15/96Nationwide Mutual Insurance Company, Estate of Willet H. Brown, KGB, Inc .................................................................. 97–0023 10/15/96HBO & Company, GMIS, Inc., GMIS Inc ............................................................................................................................. 97–0025 10/15/96New Rio, L.L.C., Donna Karan International Inc., DKNY Jeans Logo License Agreement ................................................ 97–0028 10/15/96American Mutual Holding Company, Edina Financial Services, Inc., Edina Financial Services, Inc ................................. 97–0030 10/15/96FiTech International Corporation, Mrs. Bruce G. Robert, Magnetic Power Systems, Inc .................................................. 97–0031 10/15/96Leggett & Platt, Incorporated, Steadley Company, Steadley Company ............................................................................. 96–2732 10/16/96Birmingham Steel Corporation, Hiuka America Corporation (Debtor in Bankruptcy), Hiuka America Corporation ............ 96–2996 10/16/96Wajax Limited, Spencer Industries, Inc., Spencer Industries, Inc ....................................................................................... 97–0034 10/16/96OCI Holdings Corp., John C. Skoglund, Skoglkund Communications, Inc ......................................................................... 97–0037 10/16/96Sears, Roebuck & Co., Richard L. Elwood, Vulcan Tire Company, Inc ............................................................................. 97–0039 10/16/96C. H. Boehringer Sohn (a German company), Fujisawa Pharmaceutical Co., Ltd. (a Japanese company), Fujisawa

USA, Inc ........................................................................................................................................................................... 97–0040 10/16/96AMRESCO, Inc., Russell and Rebecca Jedinak, Quality Mortgage USA, Inc., Quality Funding, Inc ................................ 97–0045 10/16/96Superior National Insurance Group, Inc., Richard H. Pickup, Pac Rim Holding Corporation ............................................ 97–0046 10/16/96Premier Parks Inc., James E. Ferrell, Family Recreational Enterprises, Concord Entertainment ...................................... 97–0054 10/16/96Mitsui & Co., Ltd., Hiuka America Corporation, Hiuka America Corporation ...................................................................... 96–2643 10/17/96Robert J. Tomsich, The General Electric Company, p.l.c., A. B. Dick Company ............................................................... 97–0043 10/18/96SBC Communication Inc., HighwayMaster Communications, Inc., HighwayMaster Communications, Inc ........................ 97–0052 10/18/96Air-Cure Technologies, Inc., Ohmstede, Inc., Ohmstede, Inc ............................................................................................. 97–0058 10/18/96Redland PLC (an English company), Harry and Dahlia J. Ratrie, Bryn Awel Corporation ................................................ 97–0112 10/18/96Swiss Reinsurance Company, Prudential Corporation p.l.c., Mercantile & General U.S. Holdings, Inc ............................ 97–0053 10/21/96HWH Capital Partners, L.P., Castle Harlan Partners, II, Smarte Carte Corporation .......................................................... 97–0064 10/21/96S.A. Louis Dreyfues et Cie, Electrafina S.A., Rockland Pipeline Company ....................................................................... 97–0069 10/21/96LucasVarity plc, S.B.C., Ltd., S.B.C., Ltd ............................................................................................................................ 97–0072 10/21/96Credit local de France, Credit Communal de Belgique S.A., Credit Communal de Belgique S.A ..................................... 97–0074 10/21/96Credit Communal de Belgique, Credit local de France, Credit local de France ................................................................. 97–0075 10/21/96Micro Warehouse, Inc., Philip E. Corcoran, USA Flex, Inc ................................................................................................. 97–0119 10/21/96Micro Warehouse, Inc., Charles S. Wolande, USA Flex, Inc .............................................................................................. 97–0120 10/21/96


TRANSACTIONS GRANTED EARLY TERMINATION BETWEEN 10/14/96 AND 10/25/96—Continued


Clyde Blowers plc, Deutsche Babcock Engergis-und Unwelttechnik AG, Bergemann USA, I ........................................... 96–3033 10/22/96Conseco, Inc., American Travellers Corporation, American Travellers Corporation .......................................................... 97–0055 10/22/96Conseco, Inc., Capitol American Financial Corporation, Capitol American Financial Corporation .................................... 97–0056 10/22/96Clayton, Dubilier & Rice Fund V Limited Partnership, Kinko’s New Master Corporation, Kinko’s New Master Corpora-

tion .................................................................................................................................................................................... 97–0065 10/22/96MCI Communication Corporation, CellStar Corporation, National Auto Center, CellStar, Ltd ........................................... 97–0066 10/22/96Franz Haniel & Cie, GmbH (a German company), Metallgesellschaft AG (a German company), Jewo USA, Inc, Jewo

USA Inc. Kentucky Corp .................................................................................................................................................. 97–0071 10/22/96GVC Corporation, BCM Advanced Research, Inc., BCM Advanced Research, Inc ........................................................... 97–0078 10/22/96Tyco International Ltd., Societe Commerciale de Metaux et Minerals, RHS Venture Associates, Inc .............................. 97–0081 10/22/96Physicians Resource Group, Inc., Douglas R. Colkitt, a division of EquiMed, Inc ............................................................. 97–0083 10/22/96Koninklijke PTT Nederland NV, TNT Limited, TNT Limited ................................................................................................ 97–0089 10/22/96General Electric Company, Lockheed Martin Corporation, Lockheed Martin Medical Imaging Systems, Inc ................... 97–0091 10/22/96U.S. Office Products Company, Thomas B. D’Agostino, Standard Forms, Inc. & Hano Business Forms, Inc .................. 97–0092 10/22/96Thomas B. D’Agostino, U.S. Office Products Company, U.S. Office Products Company .................................................. 97–0093 10/22/96Physicians Resource Group, Inc., Welsh, Carson, Anderson & Stowe VI, L.P., American Ophthalmic Incorporated ....... 97–0094 10/22/96MCN Corporation, MCN Corporation, Ada Cogeneration Limited Partnership ................................................................... 97–0095 10/22/96Life Re Corporation, General Accident, p.l.c. (an English company), New American Life Insurance Company ............... 97–0100 10/22/96HFS Incorporated, Christel DeHaan, Resort Condominiums International, Inc .................................................................. 97–0108 10/22/96Christel DeHaan, HFS Incorporated, HFS Incorporated ..................................................................................................... 97–0109 10/22/96Theodore J. Bruno, Kent Electronics Corporation, Kent Electronics Corporation .............................................................. 97–0113 10/22/96Kent Electronics Corporation, Futronix Corporation, Futronix Corporation ......................................................................... 97–0114 10/22/96Molten Metal Technology, Inc., Westinghouse Electric Corporation, Scientific Ecology Group, Inc .................................. 97–0115 10/22/96Chromcraft Revington, Inc., Cochrane Furniture Company, Inc., Cochrane Furniture Company, Inc ............................... 97–0117 10/22/96TCW Special Credits Fund V—The Principal Fund, Matrix International Logistics, Inc., Matrix International Logistics,

Inc ..................................................................................................................................................................................... 97–0123 10/22/96Bank of Boston Corporation, Publicker Industries, Inc., Masterview Window Company, Inc ............................................. 97–0104 10/22/96Michael T. Kennedy, Richard Davidovich, SP Acquisition Corporation .............................................................................. 97–0125 10/22/96Michael T. Kennedy, Michael T. Kennedy, Wincup Holdings, L.P ...................................................................................... 97–0126 10/22/96K–III Communications Corporation, BAM Media, Inc., BAM Media, Inc ............................................................................. 97–0128 10/22/96Gulf Polymer and Petrochemical, Inc., BTR plc, Westlake Styrene Corporation ............................................................... 97–0143 10/22/96Corporate Express, Inc., Sofco, Inc. Employee Stock Ownership Plan, Sofco-Mead, Inc ................................................. 97–0165 10/22/96Advanced Medical, Inc., IVAC Holdings, Inc., IVAC Holdings, Inc ..................................................................................... 96–2770 10/23/96Cole National Corporation, Grand Metropolitan Public Limited Company, Pearle, Inc., and Pearle Service Corporation 97–0001 10/23/96Raul Alarcon, Jr., Russell A. Oasis, New Age Broadcasting, Inc., a Florida corporation ................................................... 97–0059 10/23/96Ontario Teachers’ Pension Plan Board, Longview Fibre Company, Longview Fibre Company ........................................ 97–0060 10/23/96BWAY Corporation, Ball Corporation, Ball Corporation ...................................................................................................... 97–0070 10/23/963Com Corporation, OnStream Networks, Inc., OnStream Networks, Inc ........................................................................... 97–0076 10/23/96Hicks, Muse, Tate & Furst Equity Fund III, L.P., Hicks, Muse, Tate & Furst Equity Fund II, L.P., Heritage Brands Hold-

ings, Inc ............................................................................................................................................................................ 97–0135 10/23/96Pelican Companies, Inc., Builderway, Inc., Builderway, Inc ................................................................................................ 97–0151 10/23/96Continental Cablevision, Inc., Meredith Corporation, Meredith/New Heritage Strategic Partnership ................................. 96–2853 10/24/96Parker Drilling Company, Quail Tools, Inc., Quail Tools, Inc .............................................................................................. 97–0122 10/24/96The Presbyterian Foundation for Philadelphia, RHA/Home Office, Inc., Resource Housing of America, Inc .................... 96–2932 10/25/96Standard Management Corporation, Delta Life Corporation, Shelby Life Insurance Company ......................................... 96–3030 10/25/96Tele-Communications, Inc., Jones Cable Income Fund 1–C, Ltd., Jones Cable Income Fund 1–B/C Venture ................ 96–3071 10/25/96Allen K. Breed and Johnnie Cordell Breed, United Technologies Corporation, UT Automotive, Inc., IPCO, Inc .............. 96–3086 10/25/96Royal Nedlloyd N.V., P&O Nedlloyd Container Lines (Joint Venture), P&O Nedlloyd Container Lines (Joint Venture) .... 96–3092 10/25/96Heilig-Meyers Company, Rhodes, Inc., Rhodes, Inc ........................................................................................................... 97–0029 10/25/96The Peninsular and Oriental Steam Navigation Company, P&O Nedlloyd Container Lines (Joint Venture), P&O

Nedlloyd Container Lines (Joint Venture) ........................................................................................................................ 97–0077 10/25/96Bank of Boston Corporation, Publicker Industries, Inc., Masterview Window Company, Inc ............................................. 97–0104 10/25/96The SK Equity Fund, L.P., SWH Corporation, SWH Corporation ....................................................................................... 97–0132 10/25/96Paul G. Allen, Herbert Simon, Ticketmaster—Indiana ........................................................................................................ 97–0133 10/25/96Paul G. Allen, Melvin Simon, Ticketmaster—Indiana .......................................................................................................... 97–0134 10/25/96Pentair, Inc., Lelund N. Sundet, Century Mfg. Co ............................................................................................................... 97–0140 10/25/96TCW Special Credits Fund V-The Principal Fund, LEP International Worldwide Ltd., LEP Profit International, Inc ......... 97–0141 10/25/96GSA, L. P., PepsiCo, Inc., Taco Bell Corp .......................................................................................................................... 97–0145 10/25/96Eveleth Mines, LLC, Oglebay Norton Company, Oglebay Norton Taconite Company ...................................................... 97–0148 10/25/96Eveleth Mines, LLC, Eveleth Mines, LLC, Eveleth Expansion Company ........................................................................... 97–0150 10/25/96Mr. O. Gene Bicknell, Mr. Clyde Keller, R&W Pizza Huts of North Carolina, Inc .............................................................. 97–0152 10/25/96Corporate Express, Inc., Glen A. Taylor, St. Paul Book and Stationery Company ............................................................ 97–0153 10/25/96Bank of Boston Corporation, GBFC, Inc., GBFC, Inc ......................................................................................................... 97–0154 10/25/96CMS Energy Corporation, Tejas Gas Corporation, Tejas Gas Corporation ....................................................................... 97–0156 10/25/96Intertape Polymer Group Inc. (a Canadian company), The Northwestern Mutual Life Insurance Co., Tape, Incor-

porated .............................................................................................................................................................................. 97–0164 10/25/96Linsalata Capital Partners Fund II, L.P.,Time Warner, Inc., Fitness Quest Inc .................................................................. 97–0167 10/25/96Leggett & Platt, Incorporated, Latrobe Plastics Company, Latrobe Plastics Company ...................................................... 97–0168 10/25/96First Union Corporation, Keystone Investments, Inc., Keystone Investments, Inc ............................................................. 97–01709 10/25/96Frank E. Richardson, Enterprise Publishing Company, Enterprise Publishing Company .................................................. 97–0171 10/25/96Aurora Equity Partners, L.P., Culbro Corporation, Culbro Machine Systems, Inc., et al ................................................... 97–0174 10/25/96


TRANSACTIONS GRANTED EARLY TERMINATION BETWEEN 10/14/96 AND 10/25/96—Continued


Alliance Phamaceutical Corp. Henry L. Hillman, MDV Technologies, Inc .......................................................................... 97–0179 10/25/96Rush Presbyterian—St. Luke’s Medical Center, Riverside Health System, Riverside Health System .............................. 97–0187 10/25/96The Beacon Group III—Focus Value Fund, L.P., Berwind Group Partners, Micorpore Inc ............................................... 97–0188 10/25/96Aker ASA, Kjell Inge Rokke, RGI (Norway) AS ................................................................................................................... 97–0189 10/25/96

FOR FURTHER INFORMATION CONTACT:Sandra M. Peay or Parcellena P.Fielding, Contact Representative,Federal Trade Commission, PremergerNotification Office, Bureau ofCompetition, Room 303, Washington,D.C. 20580, (202) 326–3100.

By direction of the Commission.Donald S. Clark,Secretary.[FR Doc. 96–29024 Filed 11–15–96; 8:45 am]BILLING CODE 6750–01–M

DEPARTMENT OF HEALTH ANDHUMAN SERVICES

Food and Drug Administration


Countrymark Cooperative, Inc.;Withdrawal of Approval of NADA

AGENCY: Food and Drug Administration,HHS.ACTION: Notice.

SUMMARY: The Food and DrugAdministration (FDA) is withdrawingapproval of a new animal drugapplication (NADA) held byCountrymark Cooperative, Inc. TheNADA provides for the use of tylosinType A medicated articles to make TypeC medicated feeds. CountrymarkCooperative requested the withdrawal ofapproval of the NADA because they areno longer making Type A medicatedarticles for use in Type C medicatedfeeds. In a final rule publishedelsewhere in this issue of the FederalRegister, FDA is amending theregulations by removing those entrieswhich reflect approval of the NADA.EFFECTIVE DATE: November 29, 1996.FOR FURTHER INFORMATION CONTACT:Mohammad I. Sharar, Center forVeterinary Medicine (HFV–216), Foodand Drug Administration, 7500 StandishPl., Rockville, MD 20855, 301–594–1722.SUPPLEMENTARY INFORMATION:Countrymark Cooperative, Inc., 950North Meridian St., Indianapolis, IN46204–3909 (formerly the Indiana FarmBureau Cooperative Association, Inc.,120 East Market St., Indianapolis, IN

46204), has voluntarily requestedwithdrawal of approval of NADA 125–226 that provides for use of tylosin TypeA medicated articles to make tylosinType C medicated swine feeds.

Therefore, under authority delegatedto the Commissioner of Food and Drugs(21 CFR 5.10) and redelegated to theCenter for Veterinary Medicine (21 CFR5.84), and in accordance with § 514.115Withdrawal of approval of applications(21 CFR 514.115), notice is given thatapproval of NADA 125–226, and allsupplements and amendments thereto ishereby withdrawn, effective November29, 1996.

In a final rule published elsewhere inthis issue of the Federal Register, FDAis amending 21 CFR 510.600 and558.625 to reflect withdrawal ofapproval of this NADA.

Dated: October 18, 1996.Stephen F. Sundlof,Director, Center for Veterinary Medicine.[FR Doc. 96–29390 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F


Paclitaxel Drug Products;Environmental Information Needed inNew Drug Applications, AbbreviatedNew Drug Applications, andInvestigational New Drug Applications


SUMMARY: The Food and DrugAdministration (FDA) is issuing thisdocument to clarify the environmentalinformation that must be submitted tothe Center for Drug Evaluation andResearch (CDER) for drug productscontaining paclitaxel. Paclitaxel is anactive moiety that may be obtained orderived from various wild or cultivatedspecies of yews. Under the NationalEnvironmental Policy Act (NEPA), allFederal agencies are required to assessthe environmental impacts of theiractions and to ensure that the interestedand affected public is informed ofenvironmental analyses. This action isbeing taken to ensure thatenvironmental factors regarding

paclitaxel drug products are adequatelyassessed.FOR FURTHER INFORMATION CONTACT:Nancy B. Sager, Center for DrugEvaluation and Research (HFD–357),Food and Drug Administration, 5600Fishers Lane, Rockville, MD 20857,301–594–5721.SUPPLEMENTARY INFORMATION:

I. BackgroundNEPA requires all Federal agencies to

assess the environmental impacts oftheir actions and to ensure that theinterested and affected public isinformed of environmental analyses.FDA is required under NEPA toconsider the environmental impacts ofapproving drug product applications asan integral part of its regulatory process.FDA’s regulations in 21 CFR part 25specify that environmental assessments(EA’s) or abbreviated environmentalassessments (AEA’s) must be submittedas part of NDA’s, antibiotic drugapplications, ANDA’s, AADA’s, IND’s,and for other various actions describedunder § 25.22, unless the actionqualifies for a categorical exclusionunder §§ 25.23 and 25.24. FDA’sregulations at § 25.23(c) provide that aperson submitting an application for anaction that falls within a class thatqualifies for a categorical exclusionshall specify the provision that excludesthe action from the requirement for anEA. FDA may require an applicant toprovide information that establishes tothe agency’s satisfaction that the actionrequested is included within anexcluded category and meets the criteriafor the applicable exclusion (§ 25.23(c)).FDA will require an EA for any specificaction that ordinarily is excluded if theagency has sufficient evidence toestablish that the specific proposedaction may significantly affect thequality of the human environment(§ 25.23(b)). In the Federal Register ofJanuary 11, 1996 (61 FR 1031), FDAannounced the availability of a CDERguidance document entitled ‘‘Guidancefor Industry for the Submission of anEnvironmental Assessment in HumanDrug Applications and Supplements’’(Guidance for Industry). The documentwas intended to provide guidance onhow to prepare EA’s for submission to


CDER in NDA’s, antibiotic drugapplications, ANDA’s, AADA’s, andIND’s.

II. Paclitaxel Drug ProductsThe following clarifies the

environmental information that must besubmitted to CDER for drug productscontaining paclitaxel. For the purposesof the following discussion,‘‘applications’’ is defined as IND’s thatare expected to enroll cumulatively 200or more subjects, NDA’s, and ANDA’s.

In accordance with FDA’s NEPAregulations (21 CFR part 25) and theGuidance for Industry, a person whosubmits an NDA, ANDA, or INDinvolving drug products containingpaclitaxel shall include an EA for therequested action in the applicableformat, unless the action qualifies for acategorical exclusion under §§ 25.23and 25.24. In accordance with§ 25.23(c), FDA will require thosepersons submitting applicationsinvolving drug products containingpaclitaxel derived from natural sourcesto identify the sources of paclitaxel sothat FDA can determine whether an EAis required.

FDA will treat all applicationsinvolving paclitaxel derived from orotherwise involving Pacific yew trees(Taxus brevifolia) as requiring thepreparation of EA’s. Accordingly, FDAwill require persons to prepare andsubmit to the FDA EA’s for applicationsinvolving paclitaxel derived from orotherwise involving the Pacific yew.The EA’s shall, among other things,identify all sources of Pacific yew whichare expected to be harvested inconnection with the manufacture ofpaclitaxel relating to the application.The EA’s shall, among other things,include a discussion of the anticipatedenvironmental impacts of such harvests,measures that may be taken to mitigateadverse impacts, and reasonablealternatives. See in particular, formatitems 4, 9, 10 and 11, at § 25.31a. If theharvest took place prior to the issuanceof this Federal Register notice, the EA’sshall discuss, among other things, eachsuch matter including mitigationmeasures that are still available. FDAwill require this information in allfuture applications involving paclitaxelderived from or otherwise involving thePacific yew and for all such applicationswhich have not been finally acted uponby FDA by November 18, 1976.

FDA will subject such EA’s to theNEPA process, and will complete andissue an EA and finding of nosignificant impact (FONSI) inaccordance with §§ 25.32 and 25.42, oran environmental impact statement(EIS) and record of decision (ROD) in

accordance with §§ 25.34 and 25.42, asrequired by NEPA, before approving anyNDA or ANDA involving paclitaxelderived from or otherwise involving thePacific yew tree. FDA will also subjectsuch EA’s for IND’s involving paclitaxelderived from or otherwise involving thePacific yew to the NEPA process,provided that in cases in which the INDinvolves treatment of subjects withserious or life-threatening disease, asdetermined by the FDA, the FDA, whereNEPA permits, will not place the INDon clinical hold pending the completionof environmental documentationrequired by NEPA.

FDA is committed to assuring thatassessment of environmental factorscontinues throughout the planningprocess and is integrated with otherprogram planning at the earliestpossible time to ensure that planningand decisions reflect environmentalvalues (§ 25.10). As provided by FDAregulations under § 25.22(b), ‘‘Failure tosubmit an adequate EA, if one isrequired, . . . is sufficient grounds forFDA to refuse to file or approve theapplication or petition.’’

EA’s, FONSI’s, EIS’s and ROD’s fordrug products containing paclitaxel andother pertinent environmentalinformation relating to approvals ofdrug products containing paclitaxel willbe filed in Docket No. 92N–0489. Thisdocket was previously established as arepository of environmental informationrelating to the first approval of apaclitaxel drug product (Taxol, NDA20–262).

Dated: November 12, 1996.William B. Schultz,Deputy Commissioner for Policy.[FR Doc. 96–29486 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F

[Docket No. 96M–0423]

Dade Intl., Inc.; Premarket Approval ofthe aca plus PSA Test Kit, aca plusPSA Calibrator, and aca plus PSAControl


SUMMARY: The Food and DrugAdministration (FDA) is announcing itsapproval of the application by DadeIntl., Inc., Newark, DE, for premarketapproval, under the Federal Food, Drug,and Cosmetic Act (the act), of the acaplus PSA Test Kit, aca plus PSACalibrator, and aca plus PSA Control.FDA’s Center for Devices andRadiological Health (CDRH) notified the

applicant, by letter of September 9,1996, of the approval of the application.DATES: Petitions for administrativereview by December 18, 1996.ADDRESSES: Written requests for copiesof the summary of safety andeffectiveness data and petitions foradministrative review to the DocketsManagement Branch (HFA–305), Foodand Drug Administration, 12420Parklawn Dr., rm. 1–23, Rockville, MD20857.FOR FURTHER INFORMATION CONTACT:Peter E. Maxim, Center for Devices andRadiological Health (HFZ–440), Foodand Drug Administration, 2098 GaitherRd., Rockville, MD 20850, 301–594–1293.SUPPLEMENTARY INFORMATION: OnFebruary 1, 1996, Dade Intl., Inc.,Newark, DE 19714, submitted to CDRHan application for premarket approval ofthe aca plus PSA Test Kit, aca plusPSA Calibrator, and aca plus PSAControl. The device is a ProstateSpecific Antigen (PSA) Test Kit, whichconsists of the PSA test pack andreaction vessel used in the aca plusimmunoassay system to quantitativelymeasure PSA in human serum.Measurements of PSA are used as an aidin the management of prostate cancerpatients.

In accordance with the provisions ofsection 515(c)(2) of the act (21 U.S.C.360e(c)(2)) as amended by the SafeMedical Devices Act of 1990, thispremarket approval application (PMA)was not referred to the ImmunologyAdvisory Panel of the Medical DevicesAdvisory Committee, an FDA advisorycommittee, for review andrecommendation because theinformation in the PMA substantiallyduplicates information previouslyreviewed by this panel.

On September 9, 1996, CDRHapproved the application by a letter tothe applicant from the Director of theOffice of Device Evaluation, CDRH.

A summary of the safety andeffectiveness data on which CDRHbased its approval is on file in theDockets Management Branch (addressabove) and is available from that officeupon written request. Requests shouldbe identified with the name of thedevice and the docket number found inbrackets in the heading of thisdocument.

Opportunity for Administrative ReviewSection 515(d)(3) of the act authorizes

any interested person to petition, undersection 515(g) of the act, foradministrative review of CDRH’sdecision to approve this application. Apetitioner may request either a formal


hearing under 21 CFR part 12 of FDA’sadministrative practices and proceduresregulations or a review of theapplication and CDRH’s action by anindependent advisory committee ofexperts. A petition is to be in the formof a petition for reconsideration under21 CFR 10.33(b). A petitioner shallidentify the form of review requested(hearing or independent advisorycommittee) and shall submit with thepetition supporting data andinformation showing that there is agenuine and substantial issue ofmaterial fact for resolution throughadministrative review. After reviewingthe petition, FDA will decide whether togrant or deny the petition and willpublish a notice of its decision in theFederal Register. If FDA grants thepetition, the notice will state the issueto be reviewed, the form of the reviewto be used, the persons who mayparticipate in the review, the time andplace where the review will occur, andother details.

Petitioners may, at any time on orbefore December 18, 1996, file with theDockets Management Branch (addressabove) two copies of each petition andsupporting data and information,identified with the name of the deviceand the docket number found inbrackets in the heading of thisdocument. Received petitions may beseen in the office above between 9 a.m.and 4 p.m., Monday through Friday.

This notice is issued under theFederal Food, Drug, and Cosmetic Act(secs. 515(d), 520(h) (21 U.S.C. 360e(d),360j(h))) and under authority delegatedto the Commissioner of Food and Drugs(21 CFR 5.10) and redelegated to theDirector, Center for Devices andRadiological Health (21 CFR 5.53).

Dated: October 24, 1996.Joseph A. Levitt,Deputy Director for Regulations Policy, Centerfor Devices and Radiological Health.[FR Doc. 96–29487 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F

[Docket No. 96M–0424]

Spine-Tech, Inc.; Premarket Approvalof BAKTM Interbody Fusion SystemWith Instrumentation


SUMMARY: The Food and DrugAdministration (FDA) is announcing itsapproval of the application by Spine-Tech, Inc., Minneapolis, MN, forpremarket approval, under the FederalFood, Drug, and Cosmetic Act (the act),

of the BAKTM Interbody Fusion Systemwith instrumentation. After reviewingthe recommendation of the Orthopedicand Rehabilitation Devices Panel, FDA’sCenter for Devices and RadiologicalHealth (CDRH) notified the applicant,by letter of September 20, 1996, of theapproval of the application.

DATES: Petitions for administrativereview by December 18, 1996.

ADDRESSES: Written requests for copiesof the summary of safety andeffectiveness data and petitions foradministrative review to the DocketsManagement Branch (HFA–305), Foodand Drug Administration, 12420Parklawn Dr., rm. 1–23, Rockville, MD20857.

FOR FURTHER INFORMATION CONTACT:Mark N. Melkerson, Center for Devicesand Radiological Health (HFZ–410),Food and Drug Administration, 9200Corporate Blvd., Rockville, MD 20850,301–594–2036.

SUPPLEMENTARY INFORMATION: On August28, 1995, Spine-Tech, Inc., Minneapolis,MN 55439–2029, submitted to CDRH anapplication for premarket approval ofthe BAKTM Interbody Fusion Systemwith instrumentation. This device is anintervertebral body fusion device. It isindicated for use with autogenous bonegraft in patients with degenerative discdisease (DDD) at one or two contiguouslevels from L2–S1. These DDD patientsmay also have up to Grade Ispondylolisthesis or retrolisthesis at theinvolved level(s). BAKTM devices are tobe implanted via an open anterior orposterior approach. DDD is defined asdiscogenic back pain with degenerationof the disc confirmed by history andradiographic studies. These patientsshould be skeletally mature and havehad 6 months of nonoperativetreatment.

On May 23, 1996, the Orthopedic andRehabilitation Devices Panel of theMedical Devices Advisory Committee,an FDA advisory committee, reviewedand recommended approval of theapplication. On September 20, 1996,CDRH approved the application by aletter to the applicant from the Directorof the Office of Device Evaluation,CDRH.

A summary of the safety andeffectiveness data on which CDRHbased its approval is on file in theDockets Management Branch (addressabove) and is available from that officeupon written request. Requests shouldbe identified with the name of thedevice and the docket number found inbrackets in the heading of thisdocument.

Opportunity For AdministrativeReview

Section 515(d)(3) of the act (21 U.S.C.360e(d)(3)) authorizes any interestedperson to petition, under section 515(g)of the act, for administrative review ofCDRH’s decision to approve thisapplication. A petitioner may requesteither a formal hearing under 21 CFRpart 12 of FDA’s administrativepractices and procedures regulations ora review of the application and CDRH’saction by an independent advisorycommittee of experts. A petition is to bein the form of a petition forreconsideration under 21 CFR 10.33(b).A petitioner shall identify the form ofreview requested (hearing orindependent advisory committee) andshall submit with the petitionsupporting data and informationshowing that there is a genuine andsubstantial issue of material fact forresolution through administrativereview. After reviewing the petition,FDA will decide whether to grant ordeny the petition and will publish anotice of its decision in the FederalRegister. If FDA grants the petition, thenotice will state the issue to bereviewed, the form of the review to beused, the persons who may participatein the review, the time and place wherethe review will occur, and other details.

Petitioners may, at any time on orbefore December 18, 1996, file with theDockets Management Branch (addressabove) two copies of each petition andsupporting data and information,identified with the name of the deviceand the docket number found inbrackets in the heading of thisdocument. Received petitions may beseen in the office above between 9 a.m.and 4 p.m., Monday through Friday.

This notice is issued under theFederal Food, Drug, and Cosmetic Act(secs. 515(d), 520(h) (21 U.S.C. 360e(d),360j(h))) and under authority delegatedto the Commissioner of Food and Drugs(21 CFR 5.10) and redelegated to theDirector, Center for Devices andRadiological Health (21 CFR 5.53).

Dated: October 24, 1996.Joseph A. Levitt,Deputy Director for Regulations Policy, Centerfor Devices and Radiological Health.[FR Doc. 96–29394 Filed 11–15–96; 8:45 am]BILLING CODE 4160–01–F


National Institutes of Health

National Heart, Lung, and BloodInstitute; Submission for OMB Review;Comment Request; The FraminghamStudy

SUMMARY: Under the provisions ofSection 3506(c)(2)(A) of the PaperworkReduction Act of 1995, the NationalHeart, Lung, and Blood Institute(NHLBI), the National Institutes ofHealth (NIH) has submitted to the Officeof Management and Budget (OMB) arequest to review and approve theinformation collection listed below.This proposed information collectionwas previously published in the FederalRegister on August 23, 1996, page 43557and allowed 60 days for publiccomment. No public comments were

received. The purpose of this notice isto allow an additional 30 days for publiccomment. The National Institutes ofHealth may not conduct or sponsor, andthe respondent is not required torespond to, an information collectionthat has been extended, revised, orimplemented on or after October 1,1995, unless it displays a currently validOMB control number.PROPOSED COLLECTION: Title: TheFramingham Study. Type of InformationCollection Request: Extension of acurrently approved collection (OMB No.0925–0216). Need and Use ofInformation Collection: This projectinvolves physical examination andtesting of the surviving members of theoriginal Framingham Study cohort andthe surviving members of the offspring

cohort. Investigators will contactdoctors, hospitals, and nursing homes toascertain participants’ cardiovascularevents occurring outside the studyclinic. Information gathered will beused to further describe the risk factors,occurrence rates, and consequences ofcardiovascular disease in middle agedand older men and women. Frequencyof Response: The cohort participantsrespond every two years; the offspringparticipants respond every four years.Affected Public: Individuals orhouseholds; Businesses or other forprofit; Small businesses ororganizations. Type of Respondents:Middle aged and elderly adults; doctorsand staff of hospitals and nursinghomes. The annual reporting burden isas follows:

Type of respondentsEstimatednumber of

respondents

Estimatednumber ofresponses

per re-spondent

Average bur-den hours

per re-sponses

Estimatedtotal annual

burdenhours re-quested

Original cohort ................................................................................................................ 417 1.0 1.36 566Offspring cohort .............................................................................................................. 1,300 1.0 3.9 5,100Event information 1 ......................................................................................................... 1,258 1.0 0.38 472

Total ..................................................................................................................... .................... .................... ...................... 6,138

1 Annual burden is placed on doctors, hospitals, nursing homes, and respondent relatives/informants through requests for information which willhelp in the compilation of the number and nature of new fatal and nonfatal events occurring outside the Framingham examining clinic.

The cost to the respondents consistsof their time and travel; time isestimated using a rate of $10.00 perhour and travel is estimated using a costof $0.35 per mile. The annualized costto original and offspring cohortrespondents is estimated at: $56,640.The annualized cost for eventinformation is $23,173. The CapitalCosts are $229,000. The Operating andMaintenance Costs are $2,692.000.

REQUESTS FOR COMMENTS: Writtencomments and/or suggestions from thepublic and affected agencies are invitedon one or more of the following points:(1) Whether the proposed collection ofinformation is necessary for the properperformance of the functions of theagency, including whether theinformation shall have practical utility;(2) The accuracy of the agency’sestimate of the burden of the proposedcollection of information, including thevalidity of the methodology andassumptions used; (3) Ways to enhancethe quality, utility, and clarity of theinformation to be collected; and (4)Ways to minimize the burden of thecollection of information on those whoare to respond, including the use ofappropriate automated, electronic,mechanical, or other technological

collection techniques or other forms ofinformation technology.

DIRECT COMMENTS TO OMB: Writtencomments and/or suggestions regardingthe item(s) contained in this notice,especially regarding the estimatedpublic burden and associated responsetime, should be directed to the: Officeof Management and Budget, Office ofRegulatory Affairs, New ExecutiveOffice Building, Room 10235,Washington, D.C. 20503, Attention:Desk Officer for NIH. To request moreinformation on the proposed project orto obtain a copy of the data collectionplans and instruments, contact: Ms.Suzanne Anthony, Project ClearanceLiaison, National Heart, Lung, andBlood Institute, NIH, Building 31, Room4A28, MSC 2490, 31 Center Dr.,Bethesda, MD 20892–2490 or call non-toll free number (310) 496–1763, or E-mail your request, including youraddress, to: <[email protected]>.

COMMENTS DUE DATE: Commentsregarding this information collect arebest assured of having their full effect ifreceived on or before December 18,1996.

Dated: November 7, 1996.Sheila E. Merritt,Executive Officer, NHLBI.[FR Doc. 96–29463 Filed 11–15–96; 8:45 am]BILLING CODE 4140–01–M

National Institute of Arthritis andMusculoskeletal and Skin Diseases;Notice of Closed Meeting

Pursuant to Section 10(d) of theFederal Advisory Committee Act, asamended (5 United States CodeAppendix 2), notice is hereby given ofthe following National Institute ofArthritis and Musculoskeletal and SkinDiseases Special Emphasis Panel (SEP)meeting:

Purpose/Agenda: To review and evaluateresearch grant applications.

Name of SEP: Scientific Review GroupMeeting on Cartilage and Connective Tissue.

Date of Meeting: November 13, 1996.Time: 7:30 a.m.—adjournment.Place of Meeting: Holiday Inn-Bethesda,

8120 Wisconsin Avenue, Bethesda, Maryland20814.

Scientific Review Administrator: TheresaLo, Ph.D., Natcher Building, 45 Center Drive,Rm 5AS–37B, Bethesda, Maryland 20892–6500, Telephone: 301–594–4952.

The meeting will be closed in accordancewith the provisions set forth in sections552b(c)(4) and 552b(c)(6), Title 5 United


States Code. Applications and/or proposalsand the discussions could reveal confidentialtrade secrets or commercial property such aspatentable material and personal informationconcerning individuals associated with theapplications and/or proposals, the disclosureof which would constitute a clearlyunwarranted invasion of personal privacy.

This notice is being published less than 15days prior to the meeting due to the urgentneed to meet timing limitations imposed bythe review and funding cycle.(Catalog of Federal Domestic AssistanceProgram Nos. [93.846, Project Grants inArthritis, Musculoskeletal and Skin DiseasesResearch], National Institutes of Health,HHS)

Dated: November 12, 1996.Paula N. Hayes,Acting Committee Management Officer, NIH.[FR Doc. 96–29462 Filed 11–15–96; 8:45 am]BILLING CODE 4140–01–M

Public Health Service

National Institute of EnvironmentalHealth Sciences; National ToxicologyProgram (NTP) Board of ScientificCounselors’ Meeting

Pursuant to Public Law 92–463,notice is hereby given of a meeting ofthe National Toxicology Program (NTP)Board of Scientific Counselors, U.S.Public Health Service, in the ConferenceCenter, Building 101, South Campus,National Institute of EnvironmentalHealth Sciences (NIEHS), 111 AlexanderDrive, Research Triangle Park, NorthCarolina, on December 13, 1996.

The meeting will be open to thepublic from 8:45 a.m. to adjournmentwith attendance limited only by spaceavailable. Preliminary agenda topicsinclude: comprehensive presentationsand discussion with the Board about theNTP nomination and selection process,and presentations of ongoing andplanned research on endocrinedisruptors by several Federal healthresearch and regulatory agencies. Therewill be reports of recent activities by the

Board’s Biennial Report on CarcinogensSubcommittee and Technical ReportsReview Subcommittee. The Board willreview concept proposals for a contractto establish an Interagency Center forthe Evaluation of AlternativeToxicological Methods, and forexpanding the scope of support servicesfor preparation of the Biennial Report ofCarcinogens.

The Executive Secretary, Dr. Larry G.Hart, National Toxicology Program, P.O.Box 12233, NIEHS, Research TrianglePark, North Carolina 27709, telephone(919) 541–3971, FAX (919) 541–0295,will have available a firm agenda withtimes and a roster of Board membersprior to the meeting and summaryminutes subsequent to the meeting.

Dated: November 11, 1996.Kenneth Olden,Director, National Toxicology Program.[FR Doc. 96–29464 Filed 11–15–96; 8:45 am]BILLING CODE 4140–01–M

National Institute of EnvironmentalHealth Sciences; National ToxicologyProgram (NTP) Board of ScientificCounselors’ Meeting; Review of DraftNTP Technical Reports

Pursuant to Public Law 92–463,notice is hereby given of the nextmeeting of the NTP Board of ScientificCounselors’ Technical Reports ReviewSubcommittee on December 11 and 12,1996, in the Conference Center,Building 101, South Campus, NationalInstitute of Environmental HealthSciences (NIEHS), 111 Alexander Drive,Research Triangle Park, North Carolina.The meeting will begin at 8:30 a.m. bothdays and is open to the public. Theagenda topic is the peer review of draftTechnical Reports of long-termtoxicology and carcinogenesis studiesfrom the National Toxicology Program.

Tentatively scheduled to be peerreviewed on December 11–12 are draftTechnical Reports of 10 two-year

studies, listed alphabetically, along withsupporting information in the attachedtable. All studies were done usingFischer 344 rats and B6C3F1 mice. Theorder of review is given in the far rightcolumn of the table. Copies of the draftReports may be obtained, as available,from: Central Data Management, MDE1–02, P.O. Box 12233, ResearchTriangle Park, NC 27709 (919/541–3419).

Persons wanting to make a formalpresentation regarding a particularTechnical Report must notify theExecutive Secretary by telephone, byFAX, or by mail no later than December6, 1996, and provide a written copy inadvance of the meeting so copies can bemade and distributed to allSubcommittee members and staff andmake available at the meeting forattendees. Written statements shouldsupplement and may expand on the oralpresentation. Oral presentations shouldbe limited to no more than five minutes.

The program would welcomereceiving toxicology and carcinogenesisinformation from completed, ongoing,or planned studies by others, as well ascurrent production data, humanexposure information, and use patternsfor any of the chemicals listed in thisannouncement. Please contact CentralData Management at the address givenabove, and they will relay theinformation to the appropriate staffscientist.

The Executive Secretary, Dr. Larry G.Hart, P.O. Box 12233, Research TrianglePark, North Carolina 27709 (telephone919/541–3971; FAX 919/541–0295) willfurnish agenda and a roster ofSubcommittee members prior to themeeting. Summary minutes subsequentto the meeting will be available uponrequest to Central Data Management.

Dated: November 11, 1996.Kenneth Olden,Director, National Toxicology Program.

SUMMARY DATA FOR TECHNICAL REPORTS TENTATIVELY SCHEDULED FOR REVIEW AT THE MEETING OF THE BOARD OFSCIENTIFIC COUNSELOR’S TECHNICAL REPORTS REVIEW SUBCOMMITTEE, DECEMBER 11–12, 1996

Chemical CAS No. Technicalreport No. Primary uses Route exposure levels Review

order

3′-AZIDO–3′-deoxythymidine(AZT) 30516–87–1 and.

TR–469 Pyrimidine nucleoside analog withantiviral activity used in the treat-ment of AIDS (Merck 1989).

Gavage 5% Methylcellulose): Mice only: 0,30, 60, OR 120 MG/KG; 50/SEX.

2

INTERFERON AD+ AZT(AIDS INITIATIVE).

Used in the experimental treatmentof AIDS.

Subcutaneous Inj.+ Gavage (.5%Methylcellulose): DUAL ROUTES WITHBOTH COMPOUNDS: AZT: 0, 30, 60, OR120 (GAV) MG/KG; IFN: 500 OR 5000UNITS 3X/WEEK.

CHLOROPRENE 126–99–8 TR–467 Monomer for neoprene elastomers;industrial rubber products; compo-nent of laboratory adhesives infood packaging.

Inhalation (Air): Rats & Mice: 0, 12.8, 32.0,OR 80.0 PPM; 50/SEX/SPECIES/GROUP.

4


SUMMARY DATA FOR TECHNICAL REPORTS TENTATIVELY SCHEDULED FOR REVIEW AT THE MEETING OF THE BOARD OFSCIENTIFIC COUNSELOR’S TECHNICAL REPORTS REVIEW SUBCOMMITTEE, DECEMBER 11–12, 1996—Continued

Chemical CAS No. Technicalreport No. Primary uses Route exposure levels Review

order

COBALT SULFATEHEPTAHYDRATE 10026–24–1.

TR–471 Drying agent for varnishes and inks;component of electroplating solu-tions.

Inhalation (Air): Rats & Mice; 0, 0.3, 1.0, OR3.0 MG/M3; 50/SEX/SPECIES/GROUP.

3

ETHLYBENZENE 100–41–4 TR–466 Manufacture of synthetic rubber.Solvent. Fuel additive. Chemicalintermediate.

Inhalation (Air) Rats & Mice: 0, 75, 250, 750PPM (50/SEX/SPECIES/GROUP).

6

ISOBUTYRALDEHYDE 78–84–2.

TR–472 Synthesis of pantothenic acid, cel-lulose esters, perfumes, flavors,and gasoline additives. Chemicalintermediate.

Inhalation (Air) Rats & Mice: 0, 500, 1000,OR 2000 PPM (50/SEX/SPECIES/GROUP).

10

OXAZEPAM 604–75–1 .......... TR–468 Tranquilizer ...................................... Dosed-Feed (NIH–07): Rats only: 0, 625,1250, 2500, 5000, OR 10000 PPM; 50/SEX/GROUP.

1

POLYVINYL ALCOHOL9002–89–5.

TR–474 PVA film for intravaginal administra-tion of spermicides. Textile warpsizing and finishing, adhesives.Pesticides. Pigment in TV picturetubes.

Intravaginal (Deionized Water): Mice only:25% PVA, VEHICLE, UNTREATED; 100/GROUP.

8

PRIMIDONE (PRIMACLONE)125–33–7.

TR–476 Prophylactic management of partialgrand mal and psychomotor sei-zures that are refractory to otherantiepileptic drugs.

Dosed-Feed (NIH–07 Mice: 0, 0.03, 0.06, OR0.13% Rats & Mice: 0, 0.06, 0.13, OR0.25% (50/SEX/SPECIES).

9

TETRAHYDROFURAN 109–99–9.

TR–475 Reaction medium for grignard andmetal hydride reactions. Packag-ing fabrication. Solvent for resinsand plastics. Chemical intermedi-ate.

Inhalation (Air) Rats & Mice: 0, 200, 600, OR1800 PPM (50/SEX/SPECIES/GROUP).

7

THEOPHYLLINE 58–55–9 ..... TR–473 Diuretic, cardiac stimulant, smoothmuscle relaxant, antiasthmatic,occurs naturally in tea (Merck1989).

Gavage (Corn Oil): Rats: 0, 7.5, 25, OR 75MG/KG; 50/GROUP Female Mice: 0, 7.5,25, OR 75 MG/KG; 50/GROUP Male Mice:0, 15, 50, OR 150 MG/KG; 50/GROUP.

5

[FR Doc. 96–29465 Filed 11–15–96; 8:45 am]BILLING CODE 4140–01–M

Substance Abuse and Mental HealthServices Administration (SAMHSA)

Cancellation of Receipt Date forSAMHSA Conference GrantApplications

AGENCY: Center for Substance AbusePrevention and Center for SubstanceAbuse Treatment, SAMHSA.ACTION: Cancellation of January 10, 1997Application Receipt Date.

SUMMARY: SAMHSA’s Center forSubstance Abuse Prevention (CSAP)and Center for Substance AbuseTreatment (CSAT) are canceling theJanuary 10, 1997, receipt date forapplications for the following grantprograms:CSAP’s Knowledge Dissemination

Conference Grants (CFDA No. 93.174)CSAT’s Substance Abuse Treatment

Conference Grants (CFDA No. 93.218)To be placed on a mailing list for an

application kit and currentprogrammatic guidelines, potentialapplicants should contact: NationalClearinghouse for Alcohol and Drug

Information (NCADI), P.O. Box 2345,Rockville, Maryland 20847–2345, Tele:1–800–729–6686; TDD: 1–800–487–4889 Web Address: www.health.org

For information regarding futurereceipt dates or for programmaticassistance, potential applicants shouldcontact the following individuals:

CSAP: Ms. Luisa del Carmen Pollard,Division of Community Education,CSAP, Rockwall II Building, Suite800, 5600 Fishers Lane, Rockville,Maryland 20857, Tele: (301) 443–8824.

CSAT: Mr. George Kanuck, Office ofEvaluation, Statistical Analysis andSynthesis, CSAT, Rockwall IIBuilding, Suite 840, 5600 FishersLane, Rockville, Maryland 20857,Tele: (301) 443–7730.

Dated: November 11, 1996.Richard Kopanda,Executive Officer, SAMHSA.[FR Doc. 96–29395 Filed 11–15–96; 8:45 am]BILLING CODE 4162–20–P

DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

Notice of Availability of DraftEnvironmental Assessment and LandProtection Plan, ProposedEstablishment of Clarks River NationalWildlife Refuge, Marshall, McCracken,and Graves Counties, KY

AGENCY: Fish and Wildlife Service,Interior.ACTION: Notice of Availability of theDraft Environmental Assessment andLand Protection Plan for the ProposedEstablishment of Clarks River NationalWildlife Refuge.

SUMMARY: This notice advises the publicthat the U.S. Fish and Wildlife Service,Southeast Region, proposes to establisha national wildlife refuge in the vicinityof Marshall, McCracken, and GravesCounties, KY. The purpose of theproposed refuge is to protect, enhance,and manage approximately 18,000 acresof wetlands, bottomland hardwoods,and associated buffer areas for thebenefit of migratory and residentwaterfowl, neotropical migratory birds,resident wildlife, plant communities,and other species dependent on the


diverse habitats along the East Fork ofthe Clarks River. A Draft EnvironmentalAssessment and Land Protection Planfor the proposed refuge has beendeveloped by service biologists incoordination with the KentuckyDepartment of Fish and WildlifeResources and local county officials.The assessment considers the biological,environmental, and socioeconomiceffects of establishing the refuge. Theassessment also evaluates threealternative actions and their potentialimpacts on the environment. Writtencomments or recommendationsconcerning the proposal are welcomedand should be sent to the address below.DATES: Land acquisition planning forthe project is currently underway. Thedraft environmental assessment andland protection plan will be available tothe public for review and comment onNovember 15, 1996. Written commentsmust be received no later thanDecember 31, 1996, to be considered.ADDRESSES: Comments and requests forcopies of the assessment and for furtherinformation on the project should beaddressed to Mr. Charles R. Danner,Team Leader, Planning and SupportTeam, Office of Refuges and Wildlife,U.S. Fish and Wildlife Service, 1875Century Boulevard, Atlanta, GA 30345,(404) 679–7244.SUPPLEMENTARY INFORMATION: Theproposed refuge area is located inwestern Kentucky about 5 milessoutheast of Paducah, just north ofBenton within the floodplain of the EastFork of the Clarks River. Three separateareas are proposed for acquisition:Blizzard Pond, which is just east of theconfluence of the East Fork and WestFork of the Clarks River in McCrackenCounty; Burkholder Deadening inMarshall and Graves Counties, justnorthwest of Benton; and BeaverdamSlough, which is just north of Benton inMarshall County.

The proposed refuge would consist ofapproximately 18,000 acres of landacquired in fee title from willing sellers.

Dated: November 12, 1996.Jerome M. Butler,Acting Regional Director.[FR Doc. 96–29429 Filed 11–15–96; 8:45 am]BILLING CODE 4310–55–M

Bureau of Indian Affairs

Proclaiming Certain Lands asReservation for the Redwood ValleyRancheria of Pomo Indians ofCalifornia

AGENCY: Bureau of Indian Affairs,Interior.

ACTION: Notice of ReservationProclamation.

SUMMARY: The Assistant Secretary—Indian Affairs proclaimed certain landsin Mendocino County, California, as anaddition to the reservation of theRedwood Valley Rancheria of PomoIndians of California on November 1,1996. This notice is published in theexercise of authority delegated by theSecretary of the Interior to the AssistantSecretary—Indian Affairs by 209 DM8.1.FOR FURTHER INFORMATION CONTACT:Larry E. Scrivner, Bureau of IndianAffairs, Chief, Division of Real EstateServices, MS–4510/MIB/Code 220, 1849C Street, N.W., Washington, D.C. 20240,telephone (202) 208–7737.SUPPLEMENTARY INFORMATION: OnNovember 1, 1996, by proclamationissued pursuant to the Act of June 18,1934, (48 Stat. 986; 25 U.S.C. 467), thefollowing-described parcels of land,were proclaimed to be an IndianReservation for the exclusive use ofIndians entitled by enrollment or tribalmembership to reside at suchreservation.

Redwood Valley Rancheria Reservation

Mendocino County, CaliforniaAll that certain real property situate,

lying and being in the unincorporatedarea, County of Mendocino, State ofCalifornia, more particularly describedas follows:

Parcel One: Beginning at theNortheast corner of a parcel of landdescribed in a deed from the FinnishColony, a corporation to V.E. Frost andZ.J. Elliott, dated December 3, 1929,recorded in Liber 48 of Official Records,Page 208, Mendocino County Records (itbeing a point in the East line of Lot 20of the Finnish Colony Subdivision,according to the Official plat thereof onfile in the Office of the County Recorderof said Mendocino County) from whichthe Southeast corner of said Lot 20 bearsSouth 8°13′30′′ East and is 372.72 feetdistant; thence on the exteriorboundaries of the land to be describedas follows: South 77°17′30′′ West alongthe North line of said Lot of Frost andElliott 579.04 feet to its Northwestcorner; thence North 9°20′ West along aNortherly projection of the Westboundary line of said Parcel 660 feet toan iron pin marked ‘‘X’’ in the Southboundary line of a parcel of landdescribed in a deed from the Bank ofAmerica National Trust and SavingsAssociation to Dan Bergamaschi, asingle man, dated January 16, 1935,recorded in Liber 100 of OfficialRecords, Page 45, Mendocino County

Records; thence North 87°59′ East alongsaid South boundary line 606 feet to theSoutheast corner of said last mentionedparcel of land (it being a point in theEast boundary line of said Lot 20)thence South 8°13′30′′ East along saidEast boundary line 542.21 feet to thepoint of beginning. EXCEPTINGtherefrom that portion conveyed in theDeed to Donald E. Butow et us, datedFebruary 18, 1965, recorded March 3,1965, in Volume 683 of Official Records,Page 432, Mendocino County Records.

Parcel Two: Beginning at theSoutheast corner of Lot 20 of theFinnish Colony Subdivision, originallyfiled in Map Book 2, Page 189, now onfile in Map Case 1, Drawer 4, Page 89;thence from said point of beginningSouth 78°31′ West, 571.18 feet along theSouth line of said Lot 20; thence North9°20′ West 360 feet; thence North77°17′30′′ East 579.04 feet to the Eastline of said Lot 20; thence South8°13′30′′ East 372.72 feet along the Eastline of said Lot 20 to the point ofbeginning. EXCEPTING therefrom thatportion conveyed in the Deed to DonaldE. Butow et us, dated February 18, 1965,recorded March 3, 1965, in Volume 683of Official Records, Page 432,Mendocino County Records.

Title to the land described above willbe conveyed subject to any validexisting easements for public roads,highways, public utilities, pipelines,and any other valid easements or rightsof way now on record.

Dated: November 1, 1996.Ada E. Deer,Assistant Secretary—Indian Affairs.[FR Doc. 96–29439 Filed 11–15–96; 8:45 am]BILLING CODE 4310–02–P

Bureau of Land Management

(CA–059–1430–01; CACA 18099)

Public Land Order No. 7224;Revocation of Executive Order datedApril 11, 1918; California

AGENCY: Bureau of Land Management,Interior.ACTION: Public Land Order.

SUMMARY: This order revokes anExecutive order in its entirety as to theremaining 4.25 acres of landswithdrawn for Power Site Reserve No.683. The lands are no longer needed forthis purpose, and the revocation isnecessary to permit completion of apending land exchange under Section206 of the Federal Land Policy andManagement Act of 1976. This orderwill open the lands to surface entryunless closed by overlapping


withdrawals or temporary segregationsof record. The lands have been andremain open to mineral leasing and tomining under the provisions of theMining Claims Rights Restoration Act of1955. The Federal Energy RegulatoryCommission has concurred with thisaction.

EFFECTIVE DATE: December 18, 1996.

FOR FURTHER INFORMATION CONTACT:Duane Marti, BLM California StateOffice (CA–931.4), 2135 Butano Drive,Sacramento, California 95825, 916–979–2858.

By virtue of the authority vested inthe Secretary of the Interior by Section204 of the Federal Land Policy andManagement Act of 1976, 43 U.S.C.1714 (1988), it is ordered as follows:

1. The Executive Order dated April11, 1918, which withdrew public landsfor Power Site Reserve No. 683, ishereby revoked in its entirety as to thefollowing described lands:

Mount Diablo Meridian

T. 45 N., R. 7 W.,SEC. 11, lots 1, 4, 5, 8, 9, and 11;SEC. 12, lot 3.The areas described aggregate 4.25 acres in

Siskiyou County.

2. At 10 a.m. on December 18, 1996,the lands will be opened to theoperation of the public land lawsgenerally, subject to valid existingrights, the provisions of existingwithdrawals, other segregations ofrecord, and the requirements ofapplicable law. All valid applicationsreceived at or prior to 10 a.m. onDecember 18, 1996, shall be consideredas simultaneously filed at that time.Those received thereafter shall beconsidered in the order of filing.

3. The lands have been open tomining under the provisions of theMining Claims Rights Restoration Act of1955, 30 U.S.C. 621 (1988) and theseprovisions are no longer required. Thelands have been and will remain opento mineral leasing.

4. The State of California has waivedits right of selection in accordance withthe provisions of the Act of June 10,1920, Section 24, as amended, 16 U.S.C.818 (1988).

Dated: November 4, 1996.Bob Armstrong,Assistant Secretary of the Interior.[FR Doc. 96–29446 Filed 11–15–96; 8:45 am]BILLING CODE 4310–40–P

[OR–958–0777–54; GP6–0160; OR–19639(WA)]

Public Land Order No. 7222;Revocation of Secretarial Order DatedJune 22, 1925; Washington

AGENCY: Bureau of Land Management,Interior.ACTION: Public Land Order.

SUMMARY: This order revokes in itsentirety a Secretarial order whichwithdrew 49.20 acres of National ForestSystem land for the Bureau of LandManagement’s Powersite ClassificationNo. 109. The land is no longer neededfor the purpose for which it waswithdrawn. This action will open 34.20acres to surface entry. The 15 acrebalance remains closed to surface entryand mining by another overlappingwithdrawal. The land has been and willremain open to mineral leasing.EFFECTIVE DATE: December 18, 1996.FOR FURTHER INFORMATION CONTACT:Betty McCarthy, BLM Oregon/Washington State Office, P.O. Box 2965,Portland, Oregon 97208–2965, 503–952–6155.


1. The Secretarial Order dated June22, 1925, which established PowersiteClassification No. 109, is herebyrevoked in its entirety:

Willamette Meridian

Colville National Forest

T. 38 N., R. 43 E.,Sec. 19, lot 6;Sec. 20, lot 2.The area described contains 49.20 acres in

Pend Oreille County.

2. The land described as lot 6 of sec.19 and that portion of lot 2 of sec. 20lying within the boundary of PowerProject No. 2042, remain closed to suchforms of disposition as may by law bemade of National Forest System land,including the mining laws.

3. At 8:30 a.m. on December 18, 1996,the land described in paragraph 1,except as provided in paragraph 2, willbe open to such forms of disposition asmay by law be made of National ForestSystem land, subject to valid existingrights, the provisions of existingwithdrawals, other segregations ofrecord, and the requirements ofapplicable law. All valid applicationsreceived at or prior to 8:30 a.m., onDecember 18, 1996, shall be consideredas simultaneously filed at that time.

4. The land described in paragraph 1,except as provided in paragraph 2, has

been and continues to be open tolocation and entry under the mininglaws, and to applications and offersunder the mineral leasing laws.


[OR–958–1430–01; GP6–0106; OR–19665(WA)]

Public Land Order No. 7221;Revocation of the Secretarial OrderDated March 28, 1938; Washington

AGENCY: Bureau of Land Management,Interior.

ACTION: Public Land Order.

SUMMARY: This order revokes in itsentirety a Secretarial order whichwithdrew 40 acres of public land for theBureau of Land Management’sPowersite Classification No. 306. Theland is no longer needed for the purposefor which it was withdrawn. The landis in an overlapping withdrawal andremains closed to surface entry andmining. The land has been and willremain open to mineral leasing.

EFFECTIVE DATE: December 18, 1996.

FOR FURTHER INFORMATION CONTACT:Betty McCarthy, BLM Oregon/Washington State Office, P.O. Box 2965,Portland, Oregon 97208–2965, 503–952–6155.


1. The Secretarial Order dated March28, 1938, which withdrew the followingdescribed land for PowersiteClassification No. 306, is herebyrevoked in its entirety:

Willamette MeridianT. 27 N., R. 23 E.,

Sec. 17, NW1⁄4SE1⁄4.The area described contains 40 acres in

Chelan County.

2. The land is included in the Bureauof Reclamation’s withdrawal for theChelan Project, and remains closed tooperation of the public land laws,including the mining laws.



[NM–018–1430–01; NMNM 94996]

Notice of Proposed Withdrawal andOpportunity for Public Meeting; NewMexico

AGENCY: Bureau of Land Management,Interior.ACTION: Notice.

SUMMARY: The Bureau of LandManagement proposes to withdraw4,972.14 acres of public land in TaosCounty, New Mexico to protect therecreational, cultural, wildlife andvisual resources of the Wild RiversSpecial Management Area (SMA) andthe Guadalupe Mountain Area ofCritical Environmental Concern (ACEC).This notice closes the land for up to twoyears from surface entry and mining.The land will remain open to mineralleasing.DATES: Comments and requests for apublic meeting must be received byFebruary 18, 1997.ADDRESSES: Comments and meetingrequests should be sent to theAlbuquerque District Manager, Bureauof Land Management, 435 Montano NE,Albuquerque, New Mexico 87107.FOR FURTHER INFORMATION CONTACT: HalKnox, BLM Taos Resource Area Office,226 Cruz Alta Road, Taos, NM 87571,(505) 751–4707.SUPPLEMENTARY INFORMATION: OnDecember 8, 1995, a petition wasapproved allowing the Bureau of LandManagement to file an application towithdraw the following describedpublic land from settlement, sale,location, or entry under the general landlaws, including the mining laws, subjectto valid existing rights.

New Mexico Principal MeridianT. 28 N., R. 12 E.,

Sec. 2, lot 6, S1⁄2NW1⁄4NW1⁄4,N1⁄2N1⁄2SW1⁄4, N1⁄2NW1⁄4SE1⁄4, S1⁄2N1⁄2,and area lying north of the Red River;

T. 29 N., R. 12 E.,Sec. 10, lots 6, 7, 8, NE1⁄4SE1⁄4, and S1⁄2S1⁄2;Sec. 13, SW1⁄4;Sec. 14, all;Sec. 15, all;Sec. 20, lot 8;Sec. 21, S1⁄2;Sec. 22, E1⁄2, NW1⁄4, and E1⁄2E1⁄2SW1⁄4;Sec. 23, all;Sec. 24, NW1⁄4 and W1⁄2SW1⁄4;Sec. 26, N1⁄2, SW1⁄4, N1⁄2N1⁄2NE1⁄4SE1⁄4,

SW1⁄4NW1⁄4NE1⁄4SE1⁄4,W1⁄2SW1⁄4NE1⁄4SE1⁄4, NW1⁄4SE1⁄4,N1⁄2SW1⁄4SE1⁄4, SW1⁄4SW1⁄4SE1⁄4, andNW1⁄4SE1⁄4SW1⁄4SE1⁄4;

Sec. 27, E1⁄2E1⁄2 and E1⁄2W1⁄2E1⁄2;Sec. 34, E1⁄2;Sec. 35, W1⁄2NW1⁄4, W1⁄2E1⁄2NW1⁄4SW1⁄4,

W1⁄2NW1⁄4SW1⁄4, W1⁄2NE1⁄4SW1⁄4SW1⁄4,NW1⁄4SW1⁄4SW1⁄4, N1⁄2SW1⁄4SW1⁄4SW1⁄4,and SW1⁄4SW1⁄4SW1⁄4SW1⁄4.

The area described contains 4,972.14 acresin Taos County.

The purpose of the proposedwithdrawal is to protect therecreational, cultural, wildlife andvisual resources of the Wild RiversSpecial SMA and the GuadalupeMountain ACEC.

For a period of 90 days from the dateof publication of this notice, all personswho wish to submit comments,suggestions or objections, in connectionwith the proposed withdrawal, maypresent their views in writing to theAlbuquerque District Manager of theBureau of Land Management.

Notice is hereby given that anopportunity for a public meeting isafforded in connection with theproposed withdrawal. All interestedpersons who desire a public meeting forthe purpose of being heard on theproposed withdrawal must submit awritten request to the AlbuquerqueDistrict Manager within 90 days fromthe date of publication of this notice.

Upon a determination by theauthorized officer that a public meetingwill be held, a notice of time and placewill be published in the FederalRegister at least 30 days before thescheduled date of the meeting.

The application will be processed inaccordance with the regulations setforth in 43 CFR 2300.

For a period of 2 years from the dateof publication of this notice in theFederal Register, the land will besegregated as specified above unless theapplication is denied or canceled or thewithdrawal is approved prior to thatdate. The temporary uses which may bepermitted during this segregative periodare licenses, permits, cooperativeagreements, or discretionary land useauthorizations of a temporary nature,but only with the approval of anauthorized officer of the Bureau of LandManagement.

Dated: November 6, 1996.Michael R. Ford,District Manager.[FR Doc. 96–29404 Filed 11–15–96; 8:45 am]BILLING CODE 4310–FB–P

National Park Service

Draft Environmental Impact Statement(DEIS) for Lake Crescent ManagementPlan, Olympic National Park, WA

AGENCY: National Park Service, Interior.ACTION: Notice of extension of publicreview period.

SUMMARY: The comment period asspecified in the official Notice ofAvailability (FR, Vol. 61, No. 203, p.

54437) was to end December 17, 1996.This present Notice announces that thecomment period has been extendeduntil February 3, 1997.DATES: Comments on the DEIS must bereceived no later than February 3, 1997.ADDRESSES: Written comments shouldbe submitted to the Superintendent,Olympic National Park, 600 E. ParkAve., Port Angeles, WA 98362.FOR FURTHER INFORMATION CONTACT:Superintendent, Olympic National Park,at the above address or at telephonenumber (360) 452–4501, ext. 207.

Dated: November 8, 1996.William C. Walters,Deputy Field Director, Pacific West FieldArea.[FR Doc. 96–29408 Filed 11–15–96; 8:45 am]BILLING CODE 4310–70–P

OVERSEAS PRIVATE INVESTMENTCORPORATION

Public Hearing

AGENCY: Overseas Private InvestmentCorporation.ACTION: Notice of public hearing.

SUMMARY: This notice sets forth theschedule and requirements forparticipation in an annual publichearing to be conducted by the OverseasPrivate Investment Corporation (OPIC)on December 12, 1996. This hearing isrequired by the OPIC Amendments Actof 1985, and this notice is beingpublished to facilitate publicparticipation. The notice also describesOPIC and the subject matter of thehearing.DATES: The hearing will be held onDecember 12, 1996, and will beginpromptly at 2 p.m. Prospectiveparticipants must submit to OPIC beforeclose of business November 28, 1996,notice of their intent to participate.ADDRESSES: The location of the hearingwill be: Overseas Private InvestmentCorporation, 1100 New York AvenueNW., 12th Floor, Washington, DC.Notices and prepared statements shouldbe sent to Harvey Himberg, FinancialManagement and Statutory ReviewDepartment, Overseas PrivateInvestment Corporation, 1100 New YorkAvenue NW., Washington, DC 20527.

Procedure(a) Attendance; Participation. The

hearing will be open to the public.However, a person wishing to presentviews at the hearing must provide OPICwith advance notice on or beforeNovember 28, 1996. The notice mustinclude the name, address and


telephone number of the person whowill make the presentation, the nameand address of the organization whichthe person represents (if any) and aconcise summary of the subject matterof the presentation.

(b) Prepared Statements. Anyparticular wishing to submit a preparedstatement for the record must submit itto OPIC with the notice or, in any event,not later than 5 p.m. on December 5,1996. Prepared statements must betypewritten, double spaced and may notexceed twenty-five (25) pages.

(c) Duration of Presentations. Oralpresentations will in no event exceedten (10) minutes, and the time forindividual presentations may bereduced proportionately, if necessary, toafford all prospective participants on aparticular subject an opportunity to beheard or to permit all subjects to becovered.

(d) Agenda. Upon receipt of therequired notices, OPIC will prepare anagenda for the hearing setting forth thesubject or subjects on which eachparticipant will speak and the timeallotted for each presentation. OPIC willprovide each prospective participantwith a copy of the agenda.

(e) Publication of Proceedings. Averbatim transcript of the hearing willbe compiled. The transcript will beavailable to members of the public at thecost of reproduction.SUPPLEMENTARY INFORMATION: OPIC is aU.S. Government agency whichprovides, on a commercial basis,political risk insurance and financing infriendly developing countries andemerging democracies forenvironmentally sound projects whichconfer positive developmental benefitsupon the project country while creatingemployment in the U.S. OPIC isrequired by section 231A(b) of theForeign Assistance Act of 1961, asamended (‘‘the Act’’) to hold at least onepublic hearing each year.

Among other issues, OPIC’s annualpublic hearing has, in previous years,provided a forum for testimonyconcerning section 231A(a) of the Act.This section provides that OPIC mayoperate its programs only in thosecountries that are determined to be‘‘taking steps to adopt and implementlaws that extend internationallyrecognized worker rights to workers inthat country (including any designatedzone in that country).’’

Based on consultations with Congress,OPIC complies with annualdeterminations made by the ExecutiveBranch with respect to worker rights forcountries that are eligible for theGeneralized System of Preferences

(GSP). Any country for which GSPeligibility is revoked on account of itsfailure to take steps to adopt andimplement internationally recognizedworker rights is subject concurrently tothe suspension of OPIC programs untilsuch time as a favorable worker rightsdetermination can be made.

For non-GSP countries in which OPICoperates its programs, OPIC reviews anycountry which is the subject of a formalchallenge at its annual public hearing.To qualify as a formal challenge,testimony must pertain directly to theworker rights requirements of the law asdefined in OPIC’s 1985 reauthorizinglegislation (P.L. 99–204) with referenceto the Trade Act of 1974, as amended,and be supported by factualinformation.FOR FURTHER INFORMATION ABOUT THEPUBLIC HEARING CONTACT:Harvey A. Himberg, FinancialManagement and Statutory ReviewDepartment, Overseas PrivateInvestment Corporation, 1100 New YorkAvenue NW Washington, DC 20527(202) 336–8614 or by facsimile at (202)218–0177.

Dated: November 13, 1996.Richard C. Horanburg,Department of Investment Development.[FR Doc. 96–29461 Filed 11–15–96; 8:45 am]BILLING CODE 3210–01–M

DEPARTMENT OF JUSTICE

Antitrust Division

United States v. U S West, Inc. &Continental Cablevision, Inc.;Proposed Final Judgment andCompetitive Impact Statement

Notice is hereby given pursuant to theAntitrust Procedures and Penalties Act,15 U.S.C. Section 16 (b) through (h), thata proposed Final Judgment has beenfiled with the United States DistrictCourt for the District of Columbia inUnited States of America v. U S West,Inc. and Continental Cablevision, Inc.,Civil Action 96–2529 (TPJ).

The Complaint in this case allegedthat the proposed acquisition ofContinental Cablevision, Inc. by U SWest, Inc. would tend to lessencompetition substantially in the sale ofdedicated services in areas withinDenver, Colorado; Omaha, Nebraska;Phoenix, Arizona; and Seattle,Washington in which TeleportCommunications Group, Inc. (‘‘TCG’’)provides such services, in violation ofSection 7 of the Clayton Act, 15 U.S.C.18. Continental owns approximately11% of TCG. Under the terms of the

proposed Final Judgment, US WESTmust reduce its share of TCG to no morethan 10% by June 30, 1997. US WESTmust divest the remaining interest inTCG by December 31, 1998. Theproposed Final Judgment also prohibitsUS WEST from appointing members toor participating in meetings of TCG’sBoard of Directors and contains otherprovisions barring US WEST’s access toconfidential TCG information pendingcompletion of the divestitures.

Public comment is invited within thestatutory 60-day comment period. Suchcomments, and responses thereto, willbe published in the Federal Registerand filed with the Court. Commentsshould be directed to Donald J. Russell,Chief, Telecommunications Task Force,Antitrust Division, Department ofJustice, 555 4th Street, N.W., Room8104, Washington, D.C. 20001,(telephone: (202) 514–5621).Constance K. Robinson,Director of Operations, Antitrust Division.

United States District Court for theDistrict of Columbia

United States of America, Plaintiff, v. U SWest, Inc. and Continental Cablevision, Inc.,Defendants. No. 96 2529; (Antitrust) filed:November 5, 1996.Judge Thomas Penfield Jackson

StipulationIt is stipulated by and between the

undersigned parties, by their respectiveattorneys, that:

A. The parties to this Stipulationconsent that a Final Judgment in theform attached may be filed and enteredby the Court, upon any party’s or theCourt’s own motion, at any time aftercompliance with the requirements of theAntitrust Procedures and Penalties Act(15 U.S.C. 16), without further notice toany party or other proceedings,provided that plaintiff has notwithdrawn its consent, which it may doat any time before entry of the proposedFinal Judgment by serving notice on thedefendants and by filing that noticewith the Court.

B. The parties shall abide by andcomply with the provisions of theproposed Final Judgment pending entryof the Final Judgment, and shall, fromthe date of the filing of this Stipulation,comply with all the terms andprovisions of the proposed FinalJudgment as though the same were infull force and effect as an order of theCourt; provided, however, that U SWest’s obligation to divest the TCGInterest shall not arise until the FinalJudgment is entered, except that themanner and timing of any disposition ofthe TCG Interest by U S West before orafter the Final Judgment’s entry shall be


done as provided in the proposed FinalJudgment.

C. In the event plaintiff withdraws itsconsent, as provided in paragraph (A)above, or if the proposed FinalJudgment is not entered pursuant to thisStipulation, this Stipulation shall be ofno effect whatever, and the making ofthis Stipulation shall be withoutprejudice to any party in this or anyother proceeding.

D. Defendants represent that thedivestitures contemplated by theproposed Final Judgment can and willbe made and that defendants shall raiseno claims of hardship or difficulty asgrounds for asking the Court to modifyany of the divestiture provisions in theFinal Judgment.

E. All parties agree that thisagreement can be signed in multiplecounter-parts.

For the Plaintiff:David Turetsky,Deputy Assistant Attorney General.Donald J. Russell,Chief, Telecommunications Task Force.Charles E. Biggio,Senior Counsel.Nancy M. Goodman,Assistant Chief, Telecommunications TaskForce.Yvette Benguerel,Attorney, Telecommunications Task Force.Susanna Zwerling,Attorney, Telecommunications Task Force.Brent E. Marshall,Attorney, Telecommunications Task Force.U.S. Department of Justice, Antitrust

Division, 555 4th Street, N.W., Room 8104,Washington, DC 20001, (202) 514–5808.Dated: lllllll.For the Defendants:

James Anderson,Vice President & Treasurer, U S West, Inc.

Dated: lllllll.

Robert J. Sachs,Senior Vice President, Corporate & LegalContinental Cablevision, Inc.

Dated: lllllll.

Final Judgment

Whereas, plaintiff, the United Statesof America, having filed its Complaintherein on November 4, 1996, andplaintiff and defendants, by theirrespective attorneys, having consentedto the entry of this Final Judgmentwithout trial or adjudication of anyissue of fact or law herein, and withoutthis Final Judgment constituting anyevidence against or an admission by anyparty with respect to any issue of lawor fact herein:

And whereas, defendants have agreedto be bound by the provisions of this

Final Judgment pending its approval bythe Court;

And whereas, the essence of this FinalJudgment is prompt and certaindivestiture of certain assets and theimposition of related injunctive relief toassure that competition is notsubstantially lessened;

And whereas, plaintiff requires U SWEST, Inc. to make certain divestituresfor the purpose of remedying the lack ofcompetition alleged in the Complaint;

And whereas, defendants haverepresented to plaintiff that thedivestitures ordered herein can be madeand that defendants will later raise noclaims of hardship or difficulty asgrounds for asking the Court to modifyany of the divestiture provisionscontained herein below;

And, therefore, before the taking ofany testimony, and without trial oradjudication of any issue of fact or lawherein, and upon consent of the partieshereto, it is hereby ordered, adjudged,and decreed as follows:

I. JurisdictionThis Court has jurisdiction over each

of the parties hereto and the subjectmatter of this action. The Complaintstates a claim upon which relief may begranted against the defendants underSection 7 of the Clayton Act, asamended (15 U.S.C. § 18).

II. DefinitionsA. ‘‘U S WEST’’ means defendant U

S WEST, Inc., a Delaware corporationwith its headquarters in Englewood,Colorado and includes its successorsand assigns, its subsidiaries, anddirectors, officers, managers, agents andemployees acting for or on behalf ofU S WEST.

B. ‘‘U S WEST Communications’’means U S WEST Communications,Inc., a subsidiary of U S WEST, Inc., andits successors and assigns, itssubsidiaries and directors, officers,managers, agents and employees actingfor it or on its behalf.

C. ‘‘Continental’’ means defendantContinental Cablevision, Inc., aDelaware corporation with itsheadquarters in Boston, Massachusetts,and includes its successors and assigns,its subsidiaries, and directors, officers,managers, agents and employees actingfor or on behalf of Continental.

D. ‘‘TCG’’ means TelephoneCommunications Group Inc., a Delawarecorporation with its headquarters inNew York, New York.

E. ‘‘TCG Interest’’ means any and allof the TCG Common Stock owned byContinental as of June 27, 1996,including any securities into whichsuch stock may subsequently be

converted. ‘‘TCG Common Stock’’means TCG Class A Common Stock,with a par value of $.01/share, and TCGClass B Common Stock, with a par valueof $.01/share.

F. ‘‘U S WEST/Continental Merger’’means the merger of Continental into US WEST, as contemplated by the U SWEST/Continental Merger Agreement.

G. ‘‘U S WEST/Continental MergerAgreement’’ means the Agreement andPlan of Merger dated as of February 27,1996, as amended, with respect to themerger of Continental into U S WEST.

H. ‘‘U S WEST CommunicationsRegion’’ means the collective area in thestates of Arizona, Colorado, Idaho, Iowa,Minnesota, Montana, Nebraska, NewMexico, North Dakota, Oregon, SouthDakota, Utah, Washington andWyoming in which U S WESTCommunications is a local exchangecarrier.

III. ApplicabilityA. The provisions of this Final

Judgment apply to each of thedefendants, its successors and assigns,its subsidiaries, directors, officers,managers, agents, employees and allother persons in active concert orparticipation with any of them whoshall have received actual notice of thisFinal Judgment by personal service orotherwise.

B. Defendants shall require, as acondition of the sale or otherdisposition of all or substantially all theassets of the entity or entities holdingthe TCG Interest at the time of such saleor disposition, that the acquiring partyor parties agree to be bound by theprovisions of this Final Judgment:provided, however, that this obligationshall not apply in the case of thedivestiture required by Section IV or Vhereinbelow.

IV. Divestiture of TCG InterestA. U S WEST is hereby ordered and

directed, in accordance with the termsof this Final Judgment, on or before June30, 1997, to divest a portion of the TCGInterest sufficient to cause U S WEST toown less than 10% of the outstandingshares of TCG Common Stock. U SWEST is hereby further ordered anddirected, in accordance with the termsof this Final Judgment, on or beforeDecember 31, 1998, to divest anyremaining portion of the TCG Interest.Defendants agree to use their best effortsto accomplish the divestitures as setforth in this Final Judgment asexpeditiously as possible.

B. Unless plaintiff otherwise consentsin writing, the divestitures madepursuant to Section IV or V of this FinalJudgment, shall be made (i) to a


purchaser or purchasers that, in theplaintiff’s sole judgment, are financiallysound and have the intention ofmaintaining TCG as a viable competitorand (ii) in a manner that, in plaintiff’ssole judgment, shall not injure TCG.

C. In accomplishing the divestituresordered by this Final Judgment,defendants promptly shall make known,by usual and customary means, theavailability of the TCG Interest. Thedefendants shall inform any personmaking a bona fide inquiry regardingsuch a possible purchase that the sale isbeing made pursuant to this FinalJudgment and provide such person witha copy of this Final Judgment: provided,however, that the defendants are notobligated to provide such notice to anypurchaser(s) of TCG Common Stock inany proposed sale by U S WEST or itsbroker if the identity of the ultimatepurchaser(s) of the shares is unknown toU S WEST at the time of such sale.Defendants shall also offer to furnish allbona fide prospective purchasers in aproposed private sale all currentpublicly-available information filedwith the Securities and ExchangeCommission (‘‘SEC’’) regarding the TCGInterest. Defendants shall makeavailable such information to plaintiff atthe same time that such information isdelivered by defendants to any otherperson.

D. Defendants shall not finance anypart of any divestiture required by thisFinal Judgment without the priorwritten consent of the Department ofJustice.

V. Appointment of TrusteeA. In the event that U S WEST has not

divested the TCG Interest within thetime periods specified in Section IV ofthis Final Judgment, the Court shallappoint, on application of the plaintiff,a trustee selected by the plaintiff toeffect the divestiture of any remainingportion of the TCG Interest not divestedwithin the time periods set forth in thisFinal Judgment.

B. After the trustee’s appointment hasbecome effective, only the trustee shallhave the right to sell the TCG Interest.The trustee shall have the power andauthority to accomplish the divestitureat the best price then obtainable upon areasonable effort by the trustee, subjectto the provisions of Sections V and VIof this Final Judgment, and shall haveother powers as the Court shall deemappropriate. Subject to Section V.C. ofthis Final Judgment, the trustee shallhave the power and authority to hire atthe cost and expense of defendants anyinvestment bankers, attorneys, or otheragents reasonably necessary in thejudgment of the trustee to assist in the

divestiture, and such professionals oragents shall be solely accountable to thetrustee. The trustee shall have the powerand authority to accomplish thedivestiture at the earliest possible timeto a purchaser or in a manner acceptableto plaintiff, and shall have such otherpowers as this Court shall deemappropriate. Defendants shall not objectto the sale of the affected assets orinterest by the trustee on any groundsother than the trustee’s malfeasance.Any such objection by defendants mustbe conveyed in writing to plaintiff andthe trustee no later than fifteen (15)calendar days after the trustee hasprovided the notice required underSection VI of this Final Judgment.

C. The trustee shall serve at the costand expense of defendants, on suchterms and conditions as the Court mayprescribe, and shall account for allmonies derived from the sale of theassets sold by the trustee and all costsand expenses so incurred. Afterapproval by the Court of the trustee’saccounting, including fees for itsservices and those of any professionalsand agents retained by the trustee, allremaining monies shall be paid todefendants and the trustee’s servicesshall then be terminated. Thecompensation of such trustee and of anyprofessionals and agents retained by thetrustee shall be reasonable in light of thevalue of the divestiture and based on afee arrangement providing the trusteewith an incentive based on the priceand terms of the divestiture and thespeed with which it is accomplished.

D. Defendants shall take no action tointerfere with or impede the trustee’saccomplishment of the divestiture of theaffected assets or interest and shall usetheir best efforts to assist the trustee inaccomplishing the required divestiture,including best efforts to effect allnecessary regulatory approvals. Subjectto a customary confidentialityagreement, the trustee shall have fulland complete access to the defendants’personnel, books, records, and facilitiesrelated to the TCG Interest. Defendantsshall permit prospective purchasers ofthe TCG Interest to have access to anyand all financial or operationalinformation in their possession as maybe relevant to the divestiture requiredby this Final Judgment.

E. After its appointment becomeseffective, the trustee shall file monthlyreports with the parties and the Courtsetting forth the trustee’s efforts toaccomplish divestiture of any of theTCG Interest as contemplated under thisFinal Judgment; provided, however, thatto the extent such reports containinformation that the trustee deemsconfidential, such reports shall not be

filed in the public docket of the Court.Such reports shall include the name,address, and telephone number of eachperson who, during the precedingmonth, made an offer to acquire,expressed an interest in acquiring,entered into negotiations to acquire, orwas contacted or made an inquiry aboutacquiring, any or all of the TCG Interestand shall describe in detail each contactwith any such person during thatperiod. The trustee shall maintain fullrecords of all efforts made to divest anyor all of the TCG Interest.

F. Within six (6) months after itsappointment has become effective, if thetrustee has not accomplished thedivestiture required by Section IV ofthis Final Judgment, the trustee shallpromptly file with the Court a reportsetting forth (1) the trustee’s efforts toaccomplish the required divestiture, (2)the reasons, in the trustee’s judgment,why the required divestiture has notbeen accomplished, and (3) the trustee’srecommendations; provided, however,that to the extent such reports containinformation that the trustee deemsconfidential, such reports shall not befiled in the public docket of the Court.The trustee shall at the same timefurnish such reports to the parties, whoshall each have the right to be heard andto make additional recommendations.The Court shall thereafter enter suchorders as it shall deem appropriate,which shall, if necessary, includeextending the term of the trustee’sappointment.

VI. NotificationA. Within two (2) business days

following execution of a definitiveagreement to effect, in whole or in part,any proposed divestiture by privatesale(s) pursuant to Sections IV or V ofthis Final Judgment, or, in the eventsuch divestitures are proposed to bemade through transactions in the publicsecurities markets, (i) within two (2)business days following defendants’request to convert any Class B CommonStock to Class A Common Stock or (ii)prior to the filing of any registrationstatement with the SEC for a proposeddivestiture of such shares, U S WEST orthe trustee, whichever is thenresponsible for effecting the divestiture,shall notify plaintiff of the proposeddivestiture or conversion, as the casemay be. If the trustee is responsible, itshall similarly notify defendants. Thenotice shall set forth the details of theproposed transaction and list the name,address, and telephone number of eachperson not previously identified whotheretofor offered to, or expressed aninterest in or a desire to, acquire anyownership interest in the assets that are


the subject of the binding contract orpublic offering, together with full detailsof same. In the case of conversion, U SWEST or the trustee shall include insuch notice the then proposed mannerin which it intends to effect thedivestiture of such converted shares.

B. Except in the case of any proposedsale of TCG Common Stock by U SWEST or its broker wherein the identityof the ultimate purchaser(s) of theshares is unknown to U S WEST at thetime of such sale, within fifteen (15)calendar days of receipt by plaintiff ofsuch notice, plaintiff may request fromdefendants, the proposed purchaser orpurchasers, any other third party, or thetrustee if applicable, additionalinformation concerning the proposeddivestiture and the proposed purchaseror purchasers. Defendants and thetrustee shall furnish any additionalinformation requested within fifteen(15) calendar days of the receipt of therequest, unless the parties shallotherwise agree. Within thirty (30)calendar days after receipt of the noticeor within twenty (20) calendar daysafter plaintiff has been provided theadditional information requested fromdefendants, the proposed purchaser orpurchasers, any third party, and thetrustee, whichever is later, plaintiff shallprovide written notice to defendantsand the trustee, if there is one, statingwhether or not it objects to the proposeddivestiture. In the event of any proposedpublic sale of TCG Common Stock by US WEST or its broker wherein theidentity of the ultimate purchaser(s) ofthe shares is unknown to U S WEST atthe time of such sale, within three (3)days of receiving notice of defendants’request to convert the TCG Class Bshares to Class A shares, plaintiff mayrequest from defendants, any thirdparty, or the trustee if applicable,additional information concerning theproposed divestiture(s). Defendants andthe trustee shall furnish any additionalinformation requested within three (3)days of the receipt of the request unlessthe parties otherwise agree. Within ten(10) days of the receipt of the notice orwithin four (4) days after plaintiff hasbeen provided the additionalinformation from defendants, any thirdparty, or the trustee, whichever is later,plaintiff shall provide written notice todefendants and the trustee, if there isone, stating whether or not it objects tothe proposed plan of divestiture(s). Ifplaintiff provides written notice todefendants and the trustee that it doesnot object, then the divestiture may beconsummated, subject only todefendants’ limited right to object to thesale under Section V.B. of this Final

Judgment. Absent written notice thatplaintiff does not object to the proposedpurchaser or objection by plaintiff, adivestiture proposed under Section IVor V shall not be consummated. Uponobjection by plaintiff, or by defendantsunder the proviso in Section V.B., adivestiture proposed under Section IVor V shall not be consummated unlessapproved by the Court.

VII. AffidavitsA. Within twenty (20) calendar days

of the filing of this Final Judgment andevery thirty (30) calendar days thereafteruntil the divestitures have beencompleted, whether pursuant to SectionIV or V of this Final Judgment, U S Westshall deliver to plaintiff an affidavit asto the fact and manner of defendant’scompliance with the relevant section(s)of this Final Judgment. Each suchaffidavit shall include, inter alia, thename, address, and telephone number ofeach person who, at any time after theperiod covered by the last such report,made an offer to acquire, expressed aninterest in acquiring, entered intonegotiations to acquire, or wascontacted or made an inquiry aboutacquiring any or all of the TCG Interest,and shall describe in detail each contactwith any such person during thatperiod.

B. Defendants shall preserve allrecords of all efforts made to preserveand divest any or all of the TCG Interestuntil the termination of this FinalJudgment.

VIII. ConfidentialityUntil the divestitures required by the

Final Judgment have beenaccomplished:

A. U S WEST shall treat the TCGInterest as a passive investment, andshall hold the TCG Interest separate andapart from the activities and interests ofU S West Communications.

B. Defendants shall not elect, appoint,or otherwise designate any directors tothe TCG Board of Directors.

C. Defendants and any representativeof defendants shall not participate in, bepresent at (whether in person, bytelecommunications link, or otherwise),or receive any notes, minutes, oragendas of or any documents distributedin connection with any non-publicmeeting of the TCG Board of Directorsor any committee thereof, or any othergoverning body of TCG. For purposes ofthis provision, the term ‘‘meeting’’includes any action taken by consent ofthe relevant directors in lieu of ameeting.

D. Defendants shall not be a party toany communication of any non-publicstrategic or confidential information

concerning TCG or any of itssubsidiaries or affiliates; providedhowever, that nothing in this FinalJudgment shall preclude or restrictdefendants from being a party tocommunications relating to thenegotiation or conduct of arms-lengthbusiness transactions betweendefendants and TCG or any of itssubsidiaries or affiliates, relating to 1)the provision of facilities and servicesoutside the U S WEST CommunicationsRegion and 2) the provision ofinterconnection and related servicesbetween U S WEST Communicationsand TCG or any of its subsidiaries oraffiliates, within the U S WESTCommunications Region; providedfurther that outside counsel andfinancial advisors retained by U S WESTor Continental in conjunction with thedivestiture of TCG Common Stockrequired by section IV.A. hereinabovemay receive such information as isnecessary to effectuate thosetransactions and provided further, thatno such information shall be sharedwith Continental or U S WEST.

E. Defendants shall appoint a personor persons who will be responsible fordefendants’ compliance with section VIIof this Final Judgment.

IX. Compliance Inspection

Only for the purposes of determiningor securing compliance with the FinalJudgment and subject to any legallyrecognized privilege, from time to time:

A. Duly authorized representatives ofthe United States Department of Justice,upon written request of the AttorneyGeneral or of the Assistant AttorneyGeneral in charge of the AntitrustDivision, and on reasonable notice todefendants made to their principaloffices, shall be permitted:

(1) Access during office hour ofdefendants to inspect and copy allbooks, ledgers, accounts,correspondence, memoranda, and otherrecords and documents in thepossession or under the control ofdefendants, who may have counselpresent, relating to enforcement of thisFinal Judgment; and

(2) Subject to the reasonableconvenience of defendants and withoutrestraint or interference from them, tointerview officers, employees, andagents of defendants, who may havecounsel present, regarding any suchmatters.

B. Upon the written request of theAttorney General or of the AssistantAttorney General in charge of theAntitrust Division, made to defendants’principal offices, defendants shallsubmit such written reports, under oath


if requested, with respect toenforcement of this Final Judgment.

C. No information or documentsobtained by the means provided in thisSection IX shall be divulged by plaintiffto any person other than a dulyauthorized representative of theExecutive Branch of the United States,except in the course of legal proceedingsto which the United States is a party(including grand jury proceedings), orfor the purpose of securing compliancewith this Final Judgment, or asotherwise required by law.

D. If at the time information ordocuments are furnished by defendantsto plaintiff, defendants represent andidentify in writing the material in anysuch information or documents towhich a claim of protection may beasserted under Rule 26(c)(7) of theFederal Rules of Civil Procedure, anddefendants mark each pertinent page ofsuch material, ‘‘Subject to claim ofprotection under Rule 26(c)(7) of theFederal Rules of Civil Procedure,’’ thenten (10) calendar days notice shall begiven by plaintiff to defendants prior todivulging such material in any legalproceeding (other than a grand juryproceeding).

X. Retention of Jurisdiction

Jurisdiction is retained by this Courtfor the purpose of enabling any of theparties to this Final Judgment to applyto this Court at any time for such furtherorders and directions as may benecessary or appropriate for theconstruction or carrying out of this FinalJudgment, for the modification of any ofthe provisions hereof, for theenforcement of compliance herewith,and for the punishment of anyviolations hereof.

XI. Termination

Unless this Court grants an extension,this Final Judgment will expire uponthe tenth anniversary of the date of itsentry.

XII. Public Interest

Entry of this Final Judgment is in thepublic interest.

Dated: lllllll.lllllllllllllllllllll

United States District Judge.

Competitive Impact Statement

The United States pursuant to Section2(b) of the Antitrust Procedures andPenalties Act (‘‘APPA’’), 15 U.S.C.16(b)–(h), files this Competitive ImpactStatement relating to the proposed FinalJudgment submitted for entry in thiscivil antitrust proceeding.

I. Nature and Purpose of the Proceeding

The plaintiff filed a civil antitrustcomplaint on November 4, 1996,alleging that the proposed acquisition ofContinental Cablevision, Inc.(‘‘Continental’’) by U S WEST, Inc. (‘‘US West’’) would violate Section 7 of theClayton Act, 15 U.S.C. 18. U S WEST isthe dominant provider of localtelecommunications services, includingdedicated services, within its telephoneservice area in the states of Arizona,Colorado, Idaho, Iowa, Minnesota,Montana, Nebraska, New Mexico, NorthDakota, Oregon, South Dakota, Utah,Washington and Wyoming. Continentalis the third largest cable system operatorin the United States. At the time theacquisition was announced, Continentalowned 20% of TeleportCommunications Group, Inc. (‘‘TCG’’), acompetitive access provider (‘‘CAP’’)providing dedicated services in variouscities across the nation, includingDenver, Omaha, Phoenix and Seattle.

The complaint alleges that U SWEST’s acquisition of Continental’sinterest in TCG would substantiallylessen competition in the sale ofdedicated services in the areas withinDenver, Omaha, Phoenix and Seattle inwhich TCG provides such services. Theprayer for relief seeks: (1) a judgmentthat the proposed acquisition wouldviolate Section 7 of the Clayton Act, 15U.S.C. 18, and (2) a preliminary andpermanent injunction preventing U SWEST and Continental from carryingout the proposed merger.

Shortly before this complaint wasfiled, a proposed settlement wasreached that requires defendants todivest Continental’s interest in TCG byDecember 31, 1998. Continental hadpreviously reduced its share in TCGfrom the 20% it owned when theacquisition was announced, toapproximately 11%. Continental alsorelinquished its seats on TCG’s Board ofDirectors. In light of these events, theDepartment concluded that there was nocompetition-based reason to seek toprohibit U S WEST’s acquisition ofContinental. A Stipulation andproposed Final Judgment embodyingthe settlement were filedsimultaneously with the complaint.

The proposed Final Judgment ordersU S WEST, on or before June 30, 1997,to divest a portion of the shares of TCGCommon Stock it will acquire fromContinental sufficient to reduce U SWEST’s interest to less than 10% of theoutstanding shares of TCG CommonStock. The proposed Final Judgmentfurther orders U S WEST to divest itsremaining shares of TCG Common Stockon or before December 31, 1998. If U S

WEST does not divest the TCG CommonStock during the divestiture period, theCourt may appoint a trustee to sell thestock. The proposed Final Judgmentalso prohibits defendants fromappointing any members to orparticipating in meetings of the TCGBoard of Directors and contains otherprovisions designed to bar U S WEST’saccess to highly sensitive TCG businessinformation. Further, the proposed FinalJudgment requires U S WEST to treatthe TCG interest as a passiveinvestment, and to hold the TCGinterest separate and apart from theactivities and interests of U S WEST.Finally, the proposed Final Judgmentrequires U S WEST to give the UnitedStates prior notice of any proposeddivestiture, whether pursuant to apublic or private sale, to insure that thedivestiture is made to an appropriatepurchaser or purchasers and in amanner that will not harm TCG.

The United States and U S WESThave stipulated that the proposed FinalJudgment may be entered aftercompliance with the APPA. Entry of theproposed Final Judgment wouldterminate this action, except that theCourt would retain jurisdiction toconstrue, modify, or enforce theprovisions of the proposed FinalJudgment and to punish violationsthereof.

II. Description of the Events Giving Riseto the Alleged Violation

A. The Defendants and the ProposedTransaction

Defendant U S WEST is a Delawarecorporation with its headquarters inEnglewood, Colorado. U S WEST is oneof the seven Regional Bell OperatingCompanies (‘‘RBOCs’’). It is thedominant provider of localtelecommunications services, including‘‘dedicated services’’ (defined as specialaccess and local private line services)within its telephone service area in thestates of Arizona, Colorado, Idaho, Iowa,Minnesota, Montana, Nebraska, NewMexico, North Dakota, Oregon, SouthDakota, Utah, Washington andWyoming. In 1995, U S WEST reportedtotal revenues of approximately $11.7billion.

Continental is a Delaware corporationwith its headquarters in Boston,Massachusetts. Continental is the thirdlargest cable system operator in thenation. Continental owns cable systemslocated in and around St. Paul,Minnesota, as well as Twin Falls, Idaho


1 Continental also has a passive 34% interest inInsight Communications Company, LP, which ownscable systems located in Arizona and Utah.

2 The deal was subsequently amended andrevalued at $11.8 billion.

3 TCG also competes directly with U S WEST inthe provision of local exchange services in thoseareas in which TCG has the necessary facilities andin which it has been or has applied to becomecertified as a local exchange carrier, e.g., Seattle.Because the proposed Final Judgment order U SWEST to divest all of the Common Stock of TCGit acquires from Continental, it remedies any othercompetitive harm resulting from U S WEST’s partialownership of TCG. Accordingly, it is unnecessaryto determine whether the acquisition would lessencompetition in violation of Section 7 of the ClaytonAct in any other markets in which U S WESTcompetes with TCG.

In addition, the Memorandum Opinion and Order(the ‘‘Order’’), issued by the FederalCommunications Commission (the ‘‘FCC’’) onOctober 18, 1996, requires U S WEST to divestContinental’s wholly-owned cable systems locatedwithin U S WEST’s telephone service area byAugust 15, 1997, and to divest Continental’spassive, minority interest in the in-region systemsowned by Insight Communications Company, LP byApril 1, 1998. On October 24, 1996, the FCC issuedanother order clarifying that the wholly-ownedsystems which U S WEST is obligated to divest byAugust 15, 1997, include ‘‘nine cable systemsserving about 280,000 subscribers in and around St.Paul, Minnesota,’’ which systems Continentalacquired from Meredith-New Heritage Partnershipafter the U S WEST/Continental transaction wasfirst entered into. These divestitures are required bySection 652(a) of the Communications Act of 1934,as amended, which prohibits any local exchangecarrier from purchasing or otherwise acquiring‘‘directly or indirectly more than a 10% financialinterest, or any management interest, in any cableoperator providing cable service within the ‘‘localexchange carrier’s telephone service area.’’ 47U.S.C. § 572(a). Section 652 was enacted as part ofthe Telecommunications Act of 1996. The terms ofthe FCC’s Order regarding the divestiture of the in-region systems obviates the need for the Departmentindependently to determine whether the U SWEST/Continental transaction would violateSection 7 of the Clayton Act. The divestiture of thein-region systems by a date certain, pursuant to theOrder, as amended, is substantially similar to thedivestiture relief the Department would seek in theevent the U S WEST/Continental transaction wasdeemed to violate the Clayton Act, and thus willprevent any lessening of competition that mighthave resulted from the transaction.

and Keokuk, Iowa.1 Continental also hasa partial interest in TCG. In 1995,Continental’s total revenues wereapproximately $1.4 billion. TCG’s 1995revenues totaled approximately $184.9million.

On February 27, 1996, U S WESTentered into an agreement to purchaseall of the stock and assets of Continentalfor approximately $10.8 billion.2 At thetime the acquisition was announced,Continental owned 20% of TCG andheld two seats on the TCG Board ofDirectors. Therefore, Continentalreduced its share of TCG to 11% andrelinquished its Board seats.

B. Sale of Dedicated ServicesThe complaint alleges that the

provision of dedicated services in areaswithin Denver, Omaha, Phoenix andSeattle in which TCG has constructedfacilities constitutes a line of commerceand section of the country, or relevantmarket, for antitrust purposes.Dedicated services include ‘‘specialaccess’’ (the provision of dedicated linescarrying traffic from the premises ofhigh-volume end-users to the end-user’slong distance carrier, or between a givenlong distance carrier’s points-of-presence (‘‘POPs’’)); and ‘‘local privateline services’’ (dedicated linesconnecting multiple locations of an end-user within a given metropolitan area).

Initially, dedicated services wereprovided only by the RBOCs, GTE andother local exchange carriers (‘‘LECs’’).The development of fiber optics anddigital electronic technology as well aschanges in regulation, has enabled newdedicated service providers to emerge.The first of these new dedicated serviceproviders were designated ‘‘competitiveaccess providers’’ (‘‘CAPs’’) by the FCC,because they provided the means forlong distance carriers (such as AT&T,MCI and Sprint) and high-volume end-users (such as large and medium-sizebusinesses) to bypass the monopolyLEC’s facilities. The emergence of CAPshas generally resulted in lower ratesand/or higher quality services in thoseareas in which CAPs have constructedtheir networks.

The complaint alleges that theprovision of dedicated services are arelevant product market. There are noother economically comparablealternatives available to a dedicatedservices customer. A small, butsignificant non-transitory increase in theprice of dedicated services would notcause enough customers to switch to

other telecommunications services tomake the price increase unprofitable.The complaint alleges the geographicmarkets are the areas within Denver,Omaha, Phoenix and Seattle in whichTCG provides dedicated services.Dedicated services are local bydefinition. Consumers of dedicatedservices in a given metropolitan areacannot turn to providers of dedicatedservices that do not provide suchservices in that metropolitan area. Thus,consumers of dedicated services wouldnot turn to dedicated services providerslocated outside of their area in responseto a small, but significant non-transitoryprice increase for dedicated services inthe given metropolitan area.

C. Anticompetitive Consequence of theProposed Merger

The complaint alleges that U SWEST’s proposed acquisition ofContinental (which would result in U SWEST’s acquisition of Continental’sinterest in TCG) would lessencompetition substantially in theprovision of dedicated services in theareas of Denver, Omaha, Phoenix andSettle in which TCG provides suchservices.

U S WEST is the dominant providerof dedicated services within the relevantgeographic markets. An acquisition by US WEST of Continental’s interest in TCGin these markets would lessencompetition between U S WEST andTCG, leading to higher prices and/orreduced quality. U S WEST’scompetitive strategy, including itspricing and output decisions, will beinfluenced by its partial ownership of asignificant direct competitor. Because ofits partial ownership of TCG, losses ofcustomers to TCG would not be asdetrimental to U S WEST, and it wouldhave less incentive to lower prices orinterest quality to meet the emergingcompetition from CAPs in these areas.

Additionally, as a Class B votingshareholder of TCG, U S WEST isentitled to receive advance and detailednotice of significant TCG businesstransactions, including TCG’s plans forproprietary information strategically toraise the cost, increase the risk, andreduce the profitability of entry andextension by TCG, thereby limitingcompetitive entry and expansion thatwould serve to undermine U S WEST’sdominance of these markets.

There are no effective substitutes fordedicated services. A price increase fordedicated services resulting from thisacquisition would not be defeated byconsumers’ switching to othertelecommunication services orproviders of dedicated services locatedoutside of the relevant geographic areas.

Moreover, entry into the relevantmarkets sufficient to mitigate thecompetitive harm resulting from thisacquisition is unlikely within the nexttwo years.

For these reasons, the Departmentconcludes that the merger as proposedwould substantially lessen competitionin the provision of dedicated services inareas within Denver, Omaha, Phoenixand Settle in which TCG providesdedicated services, and would result inincreased rates and/or reduced qualityfor dedicated services in these areas, inviolation of Section 7 of the ClaytonAct.3

II. Explanation of the Proposed FinalJudgment

The proposed Final Judgment wouldpreserve competition in the sale ofdedicated services in areas withinDenver, Omaha, Phoenix and Seattle inwhich TCG provides dedicated services.It requires U S WEST to divest all of


Continental’s interest in TCG, a directcompetitor of U S WEST, in a mannerand over a period that will preventshort-term opportunities foranticompetitive behavior while alsominimizing any disruption to TCG. Thedivestiture will help ensure that TCGwill remain a strong competitor to U SWEST and that rates for dedicatedservices in areas within Denver, Omaha,Phoenix and Seattle in which TCGprovides dedicated services do notincrease as a result of the acquisition.

The proposed Final Judgment ordersU S WEST, on or before June 30, 1997,to divest enough shares of TCGCommon Stock sufficient to cause U SWEST to own less than 10% of theoutstanding shares of TCG CommonStock. The proposed Final Judgmentfurther orders U S WEST to divest anyremaining shares of TCG Common Stockon or before December 31, 1998. If U SWEST does not divest the TCG CommonStock during the divestiture periods, theCourt may appoint a trustee to sell thestock. If a trustee is appointed, theproposed Final Judgment provides thatthe defendants will pay all costs andexpenses of the trustee and anyprofessionals and agents retained by thetrustee. The compensation paid to thetrustee and any persons retained by thetrustee shall be both reasonable in lightof the value of the divestiture(s) andpursuant to a fee arrangement providingthe trustee with an incentive based onthe price and terms of the divestiture(s)and the speed with which it isaccomplished. After appointment, thetrustee will file monthly reports withthe parties and the Court setting forththe trustee’s efforts to accomplish thedivestiture(s) ordered under theproposed Final Judgment. If the trusteehas not accomplished the divestiture(s)within six (6) months after itsappointment, the trustee shall promptlyfile with the Court a report setting forth(1) the trustee’s efforts to accomplish therequired divestiture(s), (2) the reasons,in the trustee’s judgment, why therequired divestiture(s) has not beenaccomplished, and (3) the trustee’srecommendations. At the same time, thetrustee will furnish such report to theparties, who will each have the right tobe heard and to make additionalrecommendations consistent with thepurpose of the trust.

The proposed Final Judgment requiresU S WEST to treat the TCG interest asa passive investment, and to hold theTCG interest separate and apart from theactivities and interests of U S WEST.The Judgment also prohibits defendantsfrom appointing any members to orparticipating in meetings of the TCGBoard of Directors and contains other

provisions designed to bar U S WEST’saccess to highly sensitive TCG businessinformation.

Finally, the proposed Final Judgmentrequires U S WEST to give the UnitedStates prior notice of any proposeddivestiture(s), whether pursuant to apublic or private sale, to insure that thedivestiture(s) is made to an appropriatepurchaser or purchasers and in amanner that will not harm TCG. If theplaintiff, in its sole judgment, objects toany purchaser(s) and/or the manner inwhich the divestiture is being carriedout, the defendants shall notconsummate the divestiture(s) unlessapproved by the Court.

IV. Remedies Available to PotentialPrivate Litigants

Section 4 of the Clayton Act, 15U.S.C. 15, provides that any person whohas been injured as a result of conductprohibited by the antitrust laws maybring suit in federal court to recoverthree times the damages the person hassuffered, as well as costs and reasonableattorneys’ fees. Entry of the proposedFinal Judgment will neither impair norassist the bringing of any privateantitrust damage action. Under theprovisions of Section 5(a) of the ClaytonAct, 15 U.S.C. 16(a), the proposed FinalJudgment has no prima facie effect inany subsequent private lawsuit that maybe brought against defendants.

V. Procedures Available forModification of the Proposed FinalJudgment

The plaintiff and the defendants havestipulated that the proposed FinalJudgment may be entered by the Courtafter compliance with the provisions ofthe APPA, provided that the UnitedStates has not withdrawn its consent.The APPA conditions entry upon theCourt’s determination that the proposedFinal Judgment is in the public interest.

The APPA provides a period of atleast sixty (60) days preceding theeffective date of the proposed FinalJudgment within which any person maysubmit to the United States writtencomments regarding the proposed FinalJudgment. Any person who wishes tocomment should do so within sixty (60)days of the date of publication of thisCompetitive Impact Statement in theFederal Register. The United States willevaluate and respond to the comments.All comments will be given dueconsideration by the Department ofJustice, which remains free to withdrawits consent to the proposed FinalJudgment at any time prior to entry. Thecomments and the response of theUnited States will be filed with the

Court and published in the FederalRegister.

Written comments should besubmitted to: Donald J. Russell, Chief,Telecommunications Task Force,Antitrust Division, United StatesDepartment of Justice, 555 4th Street,N.W., Room 8104, Washington, DC20001.

The proposed Final Judgmentprovides that the Court retainsjurisdiction over this action, and theparties may apply to the Court for anyorder necessary or appropriate for themodification, interpretation, orenforcement of the Final Judgment.

VI. Alternatives to the Proposed FinalJudgment

The plaintiff considered, as analternative to the proposed FinalJudgment, a full trial on the merits of itscomplaint against defendants. Theplaintiff is satisfied, however, that thedivestiture of the TCG Common Stockand other relief contained in theproposed Final Judgment will preserveviable competition in the provision ofdedicated services in areas withinDenver, Omaha, Phoenix and Seattle inwhich TCG provides dedicated services.Thus, the proposed Final Judgmentwould achieve the relief the governmentwould have obtained through litigation,but avoids the time, expense anduncertainty of a full trial on the meritsof the complaint.

VII. Standard of Review Under theAPPA for Proposed Final Judgment

The APPA requires that proposedconsent judgments in antitrust casesbrought by the United States be subjectto a sixty (60) day comment period, afterwhich the court shall determinewhether entry of the proposed FinalJudgment ‘‘is in the public interest.’’ Inmaking that determination, the courtmay consider—

(1) the competitive impact of suchjudgment, including termination of allegedviolations, provisions for enforcement andmodification, duration or relief sought,anticipated effects of alternative remediesactually considered, and any otherconsiderations bearing upon the adequacy ofsuch judgment;

(2) the impact of entry of such judgmentupon the public generally and individualsalleging specific injury from the violationsset forth in the complaint includingconsideration of the public benefit, if any, tobe derived from a determination of the issuesat trial.

15 U.S.C. § 16(e) (emphasis added). Asthe United States Court of Appeals forthe D.C. Circuit recently held, thisstatute permits a court to consider,among other things, the relationshipbetween the remedy secured and the


4 119 Cong. Rec. 24598 (1973). See United Statesv. Gillette Co., 406 F. Supp. 713, 715 (D. Mass.1975). A ‘‘public interest’’ determination can bemade properly on the basis of the CompetitiveImpact Statement and Response to Comments filedpursuant to the APPA. Although the APPAauthorizes the use of additional procedures, 15U.S.C. § 16(f), those procedures are discretionary. Acourt need not invoke any of them unless it believesthat the comments have raised significant issuesand that further proceedings would aid the court inresolving those issues. See H.R. Rep. 93–1463, 93rdCong. 2d Sess. 8–9 (1974), reprinted in U.S.C.C.A.N.6535, 6538.

5 Bechtel, 648 F.2d at 666 (emphasis added); seeBNS, 858 F.2d at 463; United States v. NationalBroadcasting Co., 449 F. Supp. 1127, 1143 (C.D.Cal. 1978), Gillette, 406 F. Supp. at 716. See also

Microsoft, 56 F.3d at 1461 (whether ‘‘the remedies[obtained in the decree are] so inconsonant with theallegations charged as to fall outside of the ‘reachesof the public interest’ ’’).

6 United States v. American Tel. and Tel Co., 552F. Supp. 131, 151 (D.D.C. 1982), aff’d sub nom.,Maryland v. United States, 460 U.S. 1001 (1983),quoting Gillette Co., 406 F. Supp. at 716, UnitedStates v. Alcan Aluminum, Ltd., 605 F. Supp. 619,622 (W.D. Ky. 1985).

specific allegations set forth in thegovernment’s complaint, whether thedecree is sufficiently clear, whetherenforcement mechanisms are sufficient,and whether the decree may positivelyharm third parties. See United States v.Microsoft, 56 F.3d 1448, 1461–62 (D.C.Cir. 1995).

In conducting this inquiry, ‘‘[t]heCourt is nowhere compelled to go totrial or to engage in extendedproceedings which might have the effectof vitiating the benefits of prompt andless costly settlement through theconsent decree process.’’ 4 Rather,

[a]bsent a showing of corrupt failure of thegovernment to discharge its duty, the Court,in making its public interest finding, should* * * carefully consider the explanations ofthe government in the competitive impactstatement and its responses to comments inorder to determine whether thoseexplanations are reasonable under thecircumstances.

United States v. Mid-AmericaDairymen, Inc., 1977–1 Trade Cas.¶ 61,508, at 71,980 (W.D. Mo. 1977).

Accordingly, with respect to theadequacy of the relief secured by thedecree, a court may not ‘‘engage in anunrestricted evaluation of what reliefwould best serve the public.’’ UnitedStates v. BNS, Inc., 858 F.2d 456, 462(9th Cir. 1988), citing United States v.Bechtel Corp., 648 F.2d 660, 666 (9thCir.), cert. denied, 454 U.S. 1083 (1981);see also Microsoft, 56 F.3d at 1460–62.Precedent requires thatthe balancing of competing social andpolitical interests affected by a proposedantitrust consent decree must be left, in thefirst instance, to the discretion of theAttorney General. The court’s role inprotecting the public interest is one ofinsuring that the government has notbreached its duty to the public in consentingto the decree. The court is required todetermine not whether a particular decree isthe one that will best serve society, butwhether the settlement is ‘‘within the reachesof the public interest.’’ More elaboraterequirements might undermine theeffectiveness of antitrust enforcement byconsent decree.5

The proposed Final Judgment,therefore, should not be reviewed undera standard of whether it is certain toeliminate every anticompetitive effect ofa particular practice or whether itmandates certainty of free competitionin the future. Court approval of a finaljudgment requires a standard moreflexible and less strict than the standardrequired for a finding of liability. ‘‘[A]proposed decree must be approved evenif it falls short of the remedy the courtwould impose on its own, as long as itfalls within the range of acceptability oris ‘within the reaches of publicinterest.’ ’’ 6

VIII. Determinative Documents

There are no determinative materialsor documents within the meaning of theAPPA that were considered by theUnited States in formulating theproposed Final Judgment.

Respectfully submitted,Donald J. Russell,Chief, Telecommunications Task Force, U.S.Department of Justice, Antitrust Division, 5554th Street, NW., Room 8104, Washington, DC20001, (202) 514–5621.


[FR Doc. 96–29320 Filed 11–15–96; 8:45 am]BILLING CODE 4410–01–M

Federal Bureau of Investigation

RIN 1105–AA39

Agency Information CollectionActivities: Proposed Collection;Comments Requested

AGENCY: Federal Bureau ofInvestigation, DOJ.

ACTION: Correction.

In notice document 96–28703,beginning on page 57901, in the issue ofFriday, November 8, 1996, make thefollowing corrections:

On page 57901, in the first paragraphof the notice, ‘‘April 10, 1996’’ shouldread ‘‘May 10, 1996.’’

On page 57901, in the secondparagraph of the notice, ‘‘January 7,1996’’ should read ‘‘December 8, 1996.’’

Dated: November 14, 1996.Robert B. Briggs,Department Clearance Officer, United StatesDepartment of Justice.[FR Doc. 96–29574 Filed 11–15–96; 8:45 am]BILLING CODE 4410–02–M

NUCLEAR REGULATORYCOMMISSION

[Docket Nos. 50–489 AND 50–499]

Houston Lighting and PowerCompany; City Public Service Board ofSan Antonio; Central Power and LightCompany; City of Austin, Texas andSouth Texas Project, Units 1 and 2;Environmental Absessment andFinding of No Significant Impact

The U.S. Nuclear RegulatoryCommission (the Commission) isconsidering approval under 10 CFR50.80 of the transfer of FacilityOperating License Nos. NPF–76 andNPF–80, issued to Houston Lighting &Power Company, et al., (HL&P, thelicensee) with respect to operatingauthority thereunder for the SouthTexas Project, located in MatagordaCounty, Texas, and consideringissuance of conforming amendmentsunder 10 CFR 50.90.

Environmental Assessment

Identification of the Proposed ActionThe proposed action would approve

the transfer of operating authority underthe licenses to a new operating companyto allow it to use and operate SouthTexas Project Units 1 and 2 (STP) andto possess and use related licensednuclear materials in accordance withthe same conditions and authorizationsincluded in the current operatinglicenses. The proposed action wouldalso approve issuance of licenseamendments reflecting the transfer ofoperating authority. The operatingcompany would be formed by theowners to become the licensed operatorfor STP and would have exclusivecontrol over the operation andmaintenance of the facility.

Under the proposed arrangement,ownership of STP will remainunchanged with each owner retainingits current ownership interest. The newoperating company will not own anyportion of STP. Likewise, the owners’entitlement to capacity and energy fromSTP will not be affected by the proposedchange in operating responsibility forSTP from HL&P to the new operatingcompany. The owners will continue toprovide all funds for the operation,maintenance, and decommissioning bythe operating company of STP. The


responsibility of the owners willinclude funding for any emergencysituations that might arise at STP.

The proposed action is in accordancewith the licensee’s application datedAugust 23, 1996, as supplemented byletters dated October 1 and 15, 1996, forapproval of transfer of licenses andconforming amendments.

Need for the Proposed ActionThe proposed action is needed to

enable HL&P to transfer operatingauthority to an operating company asdiscussed above. HL&P has submittedthat this will enable it to enhance thealready high level of public safety,operational efficiency, and cost-effectiveoperations at STP.

Environmental Impacts of the ProposedAction

The Commission has completed itsevaluation of the proposed action andconcludes that there will be no physicalor operational changes to STP. Thetechnical qualifications of the newoperating company to carry out itsresponsibilities under the OperatingLicenses for STP, as amended, will beequivalent to the present technicalqualifications of HL&P. The operatingcompany will assume responsibility for,and control over, operation andmaintenance of the facility. The presentplant organization, the oversightorganizations, and the engineering andsupport organizations will betransferred essentially intact from HL&Pto the new operating company. Thetechnical qualifications of the proposedoperating company organization,therefore, will be at least equivalent tothose of the existing organization.

The Commission has evaluated theenvironmental impact of the proposedaction and has determined that theprobability or consequences of accidentswould not be increased and that post-accident radiological releases would notbe greater than previously determined.Further, the Commission hasdetermined that the proposed actionwould not affect routine radiologicalplant effluents and would not increaseoccupational radiological exposure.Accordingly, the Commission concludesthat there are no significant radiologicalenvironmental impacts associated withthe proposed action.

With regard to potentialnonradiological impacts, the proposedaction would not affect nonradiologicalplant effluents and would have no otherenvironmental impact. Therefore, theCommission concludes that there are nosignificant nonradiological

environmental impacts associated withthe proposed action.

Alternative to the Proposed ActionSince the Commission concluded that

there are no significant environmentaleffects that would result from theproposed action, any alternative withequal or greater environmental impactsneed not be evaluated.

The principal alternative would be todeny the requested action. Denial of theapplication would result in no changein current environmental impacts. Theenvironmental impacts of the proposedaction and the alternative action areidentical.

Alternative Use of ResourcesThis action does not involve the use

of any resources not previouslyconsidered in the ‘‘Final EnvironmentalStatement related to the operation ofSouth Texas Project, Units 1 and 2,’’dated August 1986.

Agencies and Persons ContactedIn accordance with its stated policy,

on October 17, 1996, the staff consultedwith the Texas State official, Arthur C.Tate, of the Bureau of Radiation Control,Texas Department of Health, regardingthe environmental impact of theproposed action. The State official hadno comments.

Finding of No Significant ImpactBased upon the environmental

assessment, the Commission concludesthat the proposed action will not havea significant effect on the quality of thehuman environment. Accordingly, theCommission has determined not toprepare an environmental impactstatement for the proposed action.

For further details with respect to theproposed action, see the licensee’s letterdated August 23, 1996, as supplementedby letters dated October 1 and 15, 1996,which are available for publicinspection at the Commission’s PublicDocument Room, the Gelman Building,2120 L Street, NW., Washington, DC,and at the local public document roomlocated at the Wharton County JuniorCollege, J. M. Hodges Learning Center,911 Boling Highway, Wharton, Texas77488.

Dated at Rockville, Maryland, this 8th dayof November 1996.For the Nuclear Regulatory Commission.Thomas W. Alexion,Project Manager, Project Directorate IV–1,Division of Reactor Projects—III/IV, Office ofNuclear Reactor Regulation.[FR Doc. 96–29460 Filed 11–15–96; 8:45 am]BILLING CODE 7590–01–P

All Nuclear Power Plants; Issuance ofDirector’s Decision Under 10 CFR2.206

Notice is hereby given that theDirector, Office of Nuclear ReactorRegulation, has taken action with regardto a Petition dated March 5, 1996, byMr. C. Morris. The Petition pertains toall operating nuclear power plants.

In the Petition, the Petitionerrequested that the operating licenses ofall nuclear power plants be suspendedwithin 90 days and remain suspendeduntil such time as the licensees of thoseplants discovered the reason for whatthe Petitioner asserts are repeated errorsin the undervoltage relay (UVR)setpoints (SPs) and electricaldistribution system (EDS) designs andprovided convincing evidence that thesedeficiencies had finally been corrected.Since the Petitioner had requestedaction within 90 days, the request wastreated as a request for immediate relief.The Petitioner also requested that theaforementioned evidence be reviewedby a competent third party, in additionto the staff of the U.S. NuclearRegulatory Commission (NRC), and thatif the NRC concludes that plants maysafely operate with UVRs that cannot beproperly set for long periods, the NRCshould reach these conclusions by wayof a public meeting.

The Director of the Office of NuclearReactor Regulation has denied thePetition. The reasons for this denial areexplained in the ‘‘Director’s DecisionUnder 10 CFR 2.206’’ (DD–96–12), thecomplete text of which follows thisnotice and is available for publicinspection at the Commission’s PublicDocument Room, the Gelman Building,2120 L Street, NW., Washington, DC.

A copy of the decision will be filedwith the Secretary of the Commissionfor the Commission’s review inaccordance with 10 CFR 2.206(c) of theCommission’s regulations. As providedby this regulation, the decision willconstitute the final action of theCommission 25 days after issuanceunless the Commission, on its ownmotion, institutes review of the decisionin that time.

Dated at Rockville, Maryland, this 26th dayof September 1996.


For the Nuclear Regulatory Commission.William T. Russell,Director, Office of Nuclear ReactorRegulation.

Director’s Decision Under 10 CFR 2.206

I. Introduction

On March 5, 1996, Mr. Charles Morris(Petitioner) filed a Petition with theExecutive Director for Operationspursuant to Section 2.206 of Title 10 ofthe Code of Federal Regulations (10 CFR2.206). The Petitioner requested that theoperating licenses of all nuclear powerplants be suspended within 90 days andremain suspended until such time asthose plants have (1) discovered thereason for what the Petitioner asserts arerepeated errors in the undervoltage relay(UVR) setpoints (SPs) and electricaldistribution system (EDS) designs and(2) provided convincing evidence thatthese deficiencies have finally beencorrected. Since the Petitioner hadrequested action within 90 days, therequest was treated as a request forimmediate relief. The Petitioner alsorequested that the aforementionedevidence by reviewed by a competentthird party, in addition to the NuclearRegulatory Commission (NRC) staff, andthat if the NRC concludes that plantsmay safely operate with UVRs thatcannot be properly set for long periodsof time, the NRC should reach theseconclusions by way of a public meeting.

On April 17, 1996, the Petitioner wasinformed that the request for thesuspension of all nuclear power plantlicenses within 90 days for the purposesof remedying repeated errors in UVRSPs and EDS designs was deniedbecause licensees have, to a largedegree, already addressed the issueswhich the Petitioner had raised. Alsothe Petitioner was informed that therequest was being evaluated pursuant to10 CFR 2.206 of the NRC’s regulationsand that a decision, as provided by 10CFR 2.206, would be made on therequest within a reasonable time.

On the basis of my review of theissues raised by the Petitioner asdiscussed below, I have conclude thatno substantial health and safety issueshave been raised that would require theinitiation of the action requested by thePetitioner.

II. Discussion

In his Petition, the Petitioner statedhis concern that the ‘‘enduring andwidespread nature of the electricaldistribution system (EDS) anundervoltage rely (UVR) setpoint (SP)errors (e.g., incorrect UVR and thermaloverload setpoints) was recognized byneither the licensees nor the NRC staff,’’

and was not included in NRCInformation Notice (IN) 93–99,‘‘Undervoltage Relay and ThermalOverload Setpoint Problems.’’

IN 93–99 did, in fact, inform allholders of operating licenses orcontruction permits of the widespreadnature of the setpoint errors by listingapproximately 40 licensees withincorrectly set UVRs or thermaloverload (TOL) protective devices. Theidentification of these problems was notinadvertent, but was the result ofconcerted NRC staff attention to theseissues. As was indicated to thePetitioner in an April 17, 1996, letteracknowledging receipt of his March 5,1996, 10 CFR 2.206 Petition, thePetitioner himself recognized thatElectrical Distribution SystemFunctional Inspections (EDSFIs) werehighlighting these issues and thatlicensees were conducting self-initiateddesign basis reviews (possibly inanticipation of pending EDSFIs) toidentify problems and were undertakingcorrective actions.

In his March 5, 1996, Petition, thePetitioner listed seven specific reasonsthat he believed caused repeated EDSand UVR deficiencies. The following isa description of each concernaccompanied by the NRC staff’sresponse:

1. The Petitioner stated that NRCBranch Technical Position PSB–1,‘‘Adequacy of Station ElectricDistribution System Voltages,’’contained in NUREG–0800, ‘‘StandardReview Plan for the Review of SafetyAnalysis Reports for Nuclear PowerPlants,’’ which requires a degradedvoltage relay with a long delay and aloss of power relay with a short delay,is inadequate because it does notrecognize the complexity of the matter.Except for the arbitrary time delaysassociated with the UVRs, norecognition has been made of voltagedynamics and time dependence. Signalbandwidths, responses of tap changingtransformers, and UVR time delays havebeen overlooked and should beconsidered.

ResponseNRC Branch Technical Position PSB–

1 does not recommend that licenseesarbitrarily select time delays for UVRs.On the contrary, PSB–1 states that ‘‘theselection of undervoltage and time delaysetpoints shall be determined from ananalysis of the voltage requirements ofthe Class 1E loads at all onsite systemdistributions levels.’’ Further, it statesthat ‘‘Tap settings selected should bebased on an analysis of the voltage atthe terminals of the Class 1E loads. Theanalyses performed to determine

minimum operating voltages shouldtypically consider maximum unit steadystate and transient loads * * *’’Additionally, ‘‘the first time delayshould be of a duration that establishedthe existence of a sustained degradedvoltage condition (i.e., something longerthan a motor starting transient)’’ and‘‘the second time delay should be of alimited duration such that thepermanently connected Class 1E loadswill not be damaged.’’

Therefore, the staff concludes theNRC Branch Technical Position PSB–1is adequate as it addresses those topicswhich the Petitioner believes areneglected by the Branch TechnicalPosition.

2. The Petitioner asserted that UVRtolerances are statistical in nature andnot, as the staff and design engineersoften regard them,limits to the errors inthe relay setpoints. This is a significantproblem which may not be solved ifprevious approaches are utilized anddecision analysis is not applied to studythe consequences of attempting toprevent the occasional loss of the mostvulnerable safety load at the expense oftransferring a complete division toanother power source with attendantproblems.

ResponseRegulatory Guide 1.105, ‘‘Instrument

Setpoints for Safety-Related Systems,’’states that ISA–S67.04–1982, ‘‘Setpointsfor Nuclear Safety-RelatedInstrumentation Used in Nuclear PowerPlants,’’ establishes NRC staff guidancefor ensuring that instrument setpoints insafety-related systems are initiallywithin and remain within the technicalspecification limits. Section 4.3.1 ofISA–S67.04 states that instrumentaccuracies (uncertainties, errors ortolerances) may be combined in one offive ways: algebraically, square root ofthe sum of the squares, statistically,probabilistically, or combinations of thefirst four. Justification is to be providedfor the method used.

Regulatory Guide 1.105 expands uponthis point:

Paragraph 4.3 of the standard specifies themethods for combining uncertainties isdetermining a trip setpoint and its allowablevalues. Typically, the NRC staff has accepted95% as a probability limit for errors. That is,of the observed distribution of values for aparticular error component in the empiricaldata base, 95% of the data points will bebounded by the value selected. If the database follows a normal distribution, thiscorresponds to an error distributionapproximately equal to a ‘‘two sigma’’ value.

Although the use of ‘‘two sigma’’values (value equal to twice thestandard deviation of the errors) does


not completely ensure that themeasured parameter will not exceed thesafety analysis limit withoutaccompanying protective action, theprobability of all the individual erroroccurring simultaneously at thisextreme, non-conservative, randomvalues is very low. Therefore, theregulatory guide and the industrystandard together support a credible,statistical approach for establishingsetpoints that considers such things assample size of error values, randomversus non-random errors, andindependence of errors.

The preparatory training for EDSFIteam members also did not overlook thestatistical nature of the UVR tolerances.In Section 4.8.2 of the EDSFI trainingtextbook, a discussion ofinstrumentation setpoint problems wasprovided with a sample application ofISA–S67.04 to degraded voltage relays.This methodology was also discussed inthe course itself. Using this knowledgeEDFSIs were conducted and findingswere written covering improperdegraded voltage relay setpoints. As aresult, licensees then followed thisaction with event notification and otheractivities as described in InformationNotice 93–99.

Additionally, in response to a requestfrom Region III pertaining to anunanalyzed degraded voltage concern atPerry Nuclear Power Plant, theElectrical Engineering Branch (EELB) ofNRR in an April 13, 1992, memoprovided inspectors in NRC RegionalOffices with guidance for establishingan adequate setpoint for the degradevoltage relays by way of reference toSection 4.8.2 of the EDSFI trainingcourse manual and Regulatory Guide1.105. Furthermore, the staff informedall holders of operating licenses about astatistical approach for establishment ofUVR setpoints when 91–29,‘‘Deficiencies Identified duringElectrical Distribution FunctionalInspections,’’ made reference to ISA–S67–04–1982 for useful guidance indetermination of setpoints.

The staff therefore has regarded theUVR setpoint determinations asstatistical in nature.

3. The Petitioner stated that althoughGeneral Design Criterion (GDC) 17,‘‘Electric power systems,’’ requires allEDS to be testable, only parts are testedbecause plants cannot conveniently beplaced in a condition where actual loadscan be placed on the EDS and measured.

ResponseThe staff has already been aware that

in certain situations it is not practicalnor safe to test each and everycomponent in the exact way it is used.

General Design Criterion 18, ‘‘Inspectionand testing of electrical power system,’’states that ‘‘systems shall be designedwith a capability to test periodically* * * the operability of the systems asa whole and, under conditions as closeto design as practical * * *.’’Regulatory Guide 1.118, ‘‘PeriodicTesting of Electric Power and ProtectionSystems,’’ Revision 2, endorses, IEEEStd 338–1977, ‘‘Criteria for the PeriodicTesting of Nuclear Power GeneratingStation Safety Systems,’’ which statesthat ‘‘the test program of each systemshall be designed to provide forinterference with related operationalchannels, systems, or equipment.’’ Itfurther states that ‘’wherever possible,tests shall be accomplished under actualor simulated operating conditions,including sequence of operations, forexample, diesel load sequencing,’’ butalso

Where it is not practicable to initiate theprotective action, the system shall bedesigned such that * * * Designs * * *shall be justified on the basis that there is nopractical system design that would permitoperation of the actuated equipment withoutadversely affecting the safety or operability ofthe plant, and that the probability of failureof actuated equipment not tested duringplant operation is acceptably low, and thatthe actuated equipment can be routinelytested when the plant is shut down.

It is the staff’s goal to have allcomponents of the EDS periodicallytested in a manner that is bothreasonable and practical. Variouspractical test methods such as the use ofminiflow paths, overlap testing,simulated loads, etc. have been foundacceptable by the staff.

NRC Temporary Instruction 2515/107(which provided guidance forperforming EDSFIs) required the EDSFIteams to ‘‘verify that the surveillanceand test procedures are adequate todemonstrate the functionality of theequipment or system being tested or thedesign assumptions being verified.’’

Therefore, as shown above, testing ofthe EDS is evaluated in terms ofsatisfying NRC requirements (GDC–17and GDC–18) utilizing the guidanceprovided by Regulatory Guide 1.118 fora reasonable and practical approach (inlieu of testing each system as a whole),and tests are properly implemented inthe manner described above.

4. The Petitioner pointed out that loadnameplate ratings are used in voltageanalyses even when commonknowledge shows that most loads areoperated at a fraction of their ratings.Furthermore, worst-case ambienttemperatures are used to select motorprotection time delays even though fewloads, if any, see those conditions

except during a loss-of-coolant accidentwhen the motor protection is bypassed.Additionally, UVR output delays aretreated as known quantities, when theprotection of loads by time delays andinverse time over current relays is acrude mitigating approach. As a relatedmatter, the Petitioner objects to theinconsistent use of significant figures torepresent EDS and UVR SP parameters.

Response

The aforementioned temporaryinstitution (TI) for the EDSFIs statedthat the inspectors should verify thatvalues for mechanical loads used forelectrical calculations are based onactual system operating points duringboth normal and accident conditions.The staff expects licenses to performaccurate, conservative, and boundingcalculations involving worst-caseestimates for parameters such asambient temperatures and loads. Thelicensees’ analyses are reviewed by thestaff utilizing engineering judgment andapplicable industry guidance to ensurethat reasonable, yet adequately safesolutions are provided.

It is true that, occasionally, designsproposed by licensees do involve basicapproaches (such as inverse time delayrelays) and that some calculationsperformed by licensees involve the useof ultra-precise numerical values. Whatthe staff does require is that the designsutilized by licensees meet applicableNRC regulations and that adequateprotection of public health and safety isensured.

The staff, therefore, concludes thatcomponent characteristics are treatedand utilized properly in calculationsthat support EDS and UVR designs.

5. The Petitioner believed that whenlicensees have discovered that UVR SPsare set too low, the typical response hasbeen to raise the setpoints. This, in turn,reduces the safety advantage ofproviding UVRs for the EDS due to morefrequent and unnecessary UVRactuations accompanied by possibleundesirable power systems transfers.

Response

In a letter dated August 8, 1979,addressed to all power reactor licenseesregarding the adequacy of stationelectric distribution systems voltages,the staff stated that:

Protection of safety loads fromundervoltage conditions must be deigned toprovide the required protection withoutcausing voltages in excess of maximumvoltage ratings of safety loads and withoutcausing spurious separations of safety busesfrom offsite power.Moreover,


Voltage-time settings for undervoltagerelays shall be selected so as to avoidspurious separation of safety buses fromoffsite power during plant startup, normaloperation and shutdown due to startup and/or operation of electric loads.

NRC Branch Technical Position PSB–1states that:

* * *imporper (sic) voltage protectionlogic can itself cause adverse effects on theClass 1E systems and equipment such as* * * spurious separation of Class 1Esystems from offsite power due to normalmotor starting transients.

Additionally, in IN 95–37,‘‘Inadequate Offsite Power SystemVoltages during Design-Basis Events,‘‘the staff informed power reactorlicensees that although raising UVRsetpoints ensures that adequate voltagesexist at equipment input terminals, thehigher setpoints also increase thepotential for separation from the offsitepower system during design-basisevents over the range of normallyanticipated offsite grid voltages.

In a more specific example, aFebruary 23, 1995, staff safetyevaluation of the degraded voltagedesign for the Edwin I. Hatch NuclearPlant, determined that combination ofautomatic and manual actions was anacceptable alternative approach to meetthe branch technical position in lieu ofraising the degraded voltage setpointswhich could lead to unwanted planttrips. That safety evaluation and theabove staff guidance provide evidencethat the staff has considered avoidanceof spurious bus trips as one objective tobe considered when selecting anadequate setpoint of UVRs.

The staff, therefore, has repeatedlyand in detail both considered thedetermental effects of raising the UVRsetpoints and communicated itsconcerns to licensees.

6. The Petitioner stated that in IN 95–05, ‘‘Undervoltage Protection RelaySettings Out of Tolerance Due to TestEquipment Harmonics,’’ the staffdiscovered the peak reading voltmeterscalibrated for root-mean-square (RMS)are affected by the proportions ofharmonics in the AC bus voltages andin the calibrators used to set the UVRs.Additionally, the harmonics affect theUVR responses by changing theirsetpoints when the harmonic content ofthe bus voltage changes.

ResponseIN 95–05 discusses three occurrences,

reported by licensees, where harmonicsin the output voltage of the powersupplies used during testing andcalibration of UVRs resulted in the relaysetpoints being out of tolerance. Thesetpoint errors were also affected by the

use of digital voltmeters which do notrespond to the harmonic content of thetest input voltage as do the UVRs. Thepurpose of the IN was to inform alloperating power plant licensees thatharmonics in the voltage inputs (testsource voltage or normal bus voltage) tothe UVRs impact the actual operatingpoints of those relays, as the Petitionerbelieves, and to instruct the licensees totake appropriate action (i.e., installfilters, adjust setpoints, select propertest equipment, etc.) to ensure that UVRsetpoints are adequate.

The staff, therefore, has addressed thisconcern and brought it to the attentionof licensees who are taking appropriateaction as discussed above.

7. The Petitioner concluded thatimpedances and inrush currents tomotors and other loads are not knownto the precision with which the staff andthe licensees’ engineers have beentrying to set UVRs. Both groups mustrecognize that their task may beimpossible and that their attempts to doso have increased the risk of a nuclearaccident.

ResponseBranch Technical Position PSB–1

states that voltage analyses (includingeffects of impedances and inrushcurrents) should be performed withanalytical techniques and assumptionsverified by actual measurement. It alsostates that, in general, test results shouldnot be more than 3% lower than theanalytical results. This level of precisionhas been determined to be acceptablebased on engineering judgment.

Furthermore, as stated in the responseto the Petitioner’s fourth concern, eventhough licensee propose solutionsinvolving different equipment andunique, precise calculations (whichshould be supported by actual test dataas mentioned above), staff reviews areconducted utilizing both guidance fromBranch Technical Position PSB–1 andengineering judgment to ensure that allapplicable regulations are met and thatadequate protection of public health andsafety is ensured. This approachprovides reasonable assurance that thelevel of risk of a nuclear accident is notincreased and remains acceptable.

Choosing a setpoint above ananalytical limit based on minimumvoltage requirements and belownominal votage ranges while accountingfor instrumentation errors and analyticalinaccuracies is often a challenge whichleads licensees to use more preciseequipment and more precisecalculations. It is concerns such as thesethat have led the staff to consideralternative approaches to its position ondegraded voltage protection on a plant-

specific basis as noted above in thestaff’s response to the Petitioner’s fifthconcern.

Therefore, although the staff hasconcluded that the task is notimpossible, it has recognized alternativeapproaches that address degradedvoltage concerns without increasing therisk of an accident.

To continue the discussion,identification of problems with UVRsand EDSs was not inadvertent. The NRCstaff had undertaken more globalmeasures to ensure that concerns suchas those raised by the Petitioner wereaddressed satisfactorily. Becauseprevious NRC inspection teams hadobserved that the required functionalcapabilities of certain safety-relatedsystems (including EDSs) werecompromised due to a lack of properengineering support and theintroduction of various designdeficiencies, EDFSIs were scheduled tobe conducted for all operating plantsbeginning with pilot inspections in1989. NRC Temporary Instruction (TI)2515/107 was issued on October 19,1990, to be made part of the NRCInspection Manual. That TI stated thatcalculations to establish protective relaysetpoints had not been initiallyperformed or were not updated to reflectsetpoint changes and plantmodifications. These failuresconstituted some of the deficiencies thathad been encountered by previousinspection teams. The TI stated, withregard to those concerns voiced by thePetitioner, that the forthcominginspections should verify:

• That ratings and setpoints havebeen correctly chosen and controlled forprotective and control relays and circuitbreakers to assure proper coordination,protection, required automatic action,and annunciation.

• The adequacy of the load study,voltage profiles, voltage dropcalculations, motor starting study, loadshedding, engineered safety features(ESF) bus load sequencing and overloadtrip settings for ESF loads includingconsideration of steady-state andaccident-transient loads andconsideration of acceleration of theloads during degraded voltageconditions that may occur duringvarious modes of plant operation andaccident mitigation scenarios.

• The adequacy of short circuitcalculations, design of protective relaylogic and relay setting calculations,grounding calculations and schemes,and protective device coordinationstudies.

• That setpoints for overcurrentprotective relays are correctly chosen (1)to assure proper breaker coordination


between different voltage levels; (2) toprevent exceeding the vendor-specifiedthermal limits on motors, containmentelectrical penetrations and cableinsulation systems; (3) to allow startingof electrical equipment under degradedvoltage conditions; and (4) to provideadequate pre-trip alarms, whenapplicable.

• The adequacy of setpoints and timedelays for other protective relays forattributes such as undervoltage,underfrequency, reverse power, groundfaults, differential current, thermaloverload and phase synchronization toassure functionality of the EDS.

• That mechanical loads, such aspump horsepower, correspond to actualsystem operating points during normaland accident conditions and have beencorrectly translated to electrical loadsand incorporated in the electrical loadlist as appropriate.

• That surveillance and testprocedures are adequate to demonstratethe functionality of the equipment orsystem being tested or the designassumptions being verified.

NRC inspectors (including NRCcontractors) assigned to the EDSFI teamsattended a week-long course (held inSeptember and December 1990) toenhance their knowledge of EDSs, the TIand related requirements. Using theguidance provided by the TI and theEDSFI training course, the EDSFI teamsthen conducted inspections of the EDSsthrough early 1994 at most operatingnuclear power plants. As a result,numerous deficiencies were identifiedand documented in plant-specific EDSFIinspection reports, and correctiveactions were taken. Those correctiveactions were subsequently evaluated,found acceptable by the staff anddocumented in follow-up inspectionreports. Many of these deficiencies andcorrective actions were listed in IN 93–99 and include incorrect UVR relay andthermal overload setpoints caused bydesign errors, as well as other pointsraised by the Petitioner.

In summary, as stated in my April 17,1996, letter, I believe the NRC staffrecognized the existence of repeatederrors and widespread EDS designdeficiencies, including those associatedwith UVR SPs, took appropriate actions(conducted EDSFIs, identifieddeficiencies, required corrective actions)based on those observations, and madeall licenses aware of typical designdeficiencies encountered during EDSFIsand licensees’ self-initiated efforts byissuing INs such as IN 91–29,‘‘Deficiencies Identified DuringElectrical Distribution SystemFunctional Inspections,’’ itssupplements, and IN 93–99.

Additionally, the staff has continued toinform power reactor licensees of otherdesign deficiencies when they areencountered (e.g., IN 95–37 whichdiscusses UVR setpoints in relationshipto inadequate offsite power systemvoltages during design-basis events) andwill continue to do so in the futurewhen necessary. Such action by the staffis appropriate to address repeated errorsin UVR setpoints and EDS designs andto provide reasonable assurance ofadequate protection of public health andsafety.

III. Conclusion

The institution of proceedingspursuant to 10 CFR 2.206 is appropriateonly if substantial health and safetyissues have been raised. SeeConsolidated Edison Co. of New York(Indian Point Units 1, 2, and 3) CLI–75–8, 2 NRC 173, 175 (1975) andWashington Public Power SupplySystem (WPPSS Nuclear Project No. 2)DD–84–7, 19 NRC 899, 924 (1984). Thisis the standard that has been applied tothe concerns raised by the Petitioner todetermine whether the action requestedby the Petitioner, or enforcement action,is warranted.

On the basis of the precedingassessment, I have concluded that nosubstantial health and safety issues havebeen raised by the Petitioner that wouldwarrant the action requested by thePetitioner. I further conclude that thePetitioner’s concerns have beenadequately addressed by the staff andthat there is no need for a third partyreview. Additionally, with regard toplants with UVRs that cannot beproperly set, the staff has shown inplant-specific evaluations, such asdescribed above, that other alternativedesigns are acceptable.

The Petitioner’s request for actionpursuant to 10 CFR 2.206 is denied. Asprovided for in 10 CFR 2.206(c), a copyof the decision will be filed with theSecretary of the Commission for theCommission’s review. The decision willconstitute the final action of theCommission 25 days after issuanceunless the Commission, on its ownmotion, institutes review of the decisionin that time.

Dated at Rockville, Maryland, this 26 dayof September, 1996.For the Nuclear Regulatory Commission.William T. Russell,Director, Office of Nuclear ReactorRegulation.[FR Doc. 96–29459 Filed 11–15–96; 8:45 am]BILLING CODE 7590–01–M

OFFICE OF MANAGEMENT ANDBUDGET

Budget Analysis Branch;Sequestration Update Report

AGENCY: Office of Management andBudget—Budget Analysis Branch.ACTION: Notice of transmittal of finalsequestration report to the President andCongress.

SUMMARY: Pursuant to Section 254(b) ofthe Balanced Budget and EmergencyControl Act of 1985, as amended, theOffice of Management and Budgethereby reports that it has submitted itsFinal Sequestration Report to thePresident, the Speaker of the House ofRepresentatives, and the President ofthe Senate.FOR FURTHER INFORMATION CONTACT:Ellen Balis, Budget Analysis Branch—202/395–4574.

Dated: November 13, 1996.John B. Arthur,Associate Director for Administration.[FR Doc. 96–29599 Filed 11–14–96; 2:30 pm]BILLING CODE 3110–01–P

POSTAL SERVICE

Board of Governors; Amendment toClosed Sunshine Act Meeting Agenda

‘‘FEDERAL REGISTER’’ CITATION OFPREVIOUS ANNOUNCEMENT: 61 FR 54245,October 17, 1996, and 61 FR 56576,November 1, 1996.PREVIOUSLY ANNOUNCED DATE OFMEETING: November 4, 1996.CHANGE: Addition of the following itemto the closed meeting agenda:1. Consideration of Exercising the

Board’s Reserved ApprovalAuthority With Respect toPerformance of a Prototype for theTray Management Systems.

CONTACT PERSON FOR MORE INFORMATION:Thomas J. Koerber, (202) 268–4800.

At its meeting on November 4, 1996,the Board of Governors of the UnitedStates Postal Service voted unanimouslyto add to the agenda, ‘‘consideration ofexercising the Board’s reserved approvalauthority with respect to performance ofa prototype for the tray managementsystems,’’ and that discussion on theitem was closed to the public pursuantto section 552b(c)(9)(B) of title, 5,United States Code; and § 7.3(i) of title39, Code of Federal Regulations, andthat no earlier announcement waspossible.

In accordance with section 552b(f)(1)of title 5, United States Code, and§ 7.6(a) of title 39, Code of Federal


1 Investment Company Act Release Nos. 20261(Apr. 29, 1994) (notice) and 20317 (May 25, 1994)(order) (order amending prior orders permittingBMCC to establish BMSBLC as a wholly-ownedsubsidiary); 19584 (July 21, 1993) (notice) and19636 (Aug. 17, 1993) (order) (order amending

Regulations, the General Counsel of theUnited States Postal Service hascertified that in her opinion the meetingwas properly closed to publicobservation, pursuant to section552b(c)(9)(B) of Title 5, United StatesCode; and § 7.3(i) of Title 39, Code ofFederal Regulations.Thomas J. Koerber,Secretary.[FR Doc. 96–29562 Filed 11–14–96; 8:45 am]BILLING CODE 7710–12–M

SECURITIES AND EXCHANGECOMMISSION

Proposed Collection; CommentRequest

Upon Written Request, Copies AvailableFrom: Securities and ExchangeCommission, Office of Filings andInformation Services, Washington,DC 20549

Extension: Rule 18f–3—SEC File No.270–385—OMB Control No. 3235–0441

Notice is hereby given that pursuantto the Paperwork Reduction Act of 1995(44 U.S.C. 3501 et seq.), the Securitiesand Exchange Commission(‘‘Commission’’) is publishing for publiccomment the following summary ofpreviously approved informationcollection requirements.

Rule 18f–3 permits any registeredopen-end management investmentcompany that satisfies its conditions toissue multiple classes of sharesrepresenting interests in the sameportfolio of securities but havingdifferent arrangements for shareholderservices, distribution, or both. Rule 18f–3 requires, among other things, that amultiple class fund adopt a written plansetting forth the different classarrangements. The Commissionestimates that approximately 600investment companies use rule 18f–3and that the annual paperwork burdenis approximately one hour perrespondent, for a total of about 600burden hours.

The estimate of average burden hoursis made solely for the purposes of thePaperwork Reduction Act, and is notderived from a comprehensive or evena representative survey or study.

Written comments are requested on:(a) whether the collections ofinformation are necessary for the properperformance of the functions of theCommission, including whether theinformation has practical utility; (b) theaccuracy of the Commission’s estimateof the burdens of the collection ofinformation; (c) ways to enhance the

quality, utility, and clarity of theinformation collected; and (d) ways tominimize the burden of the collection ofinformation on respondents, includingthrough the use of automated collectiontechniques or other forms of informationtechnology. Consideration will be givento comments and suggestions submittedin writing within 60 days of thispublication.

Direct your written comments toMichael E. Bartell, Associate ExecutiveDirector, Office of InformationTechnology, Securities and ExchangeCommission, 450 5th Street, N.W.,Washington, DC 20549.

Dated: November 7, 1996.Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–29440 Filed 11–15–96; 8:45 am]BILLING CODE 8010–01–M

[Investment Company Act Release No.22326; 811–3787; 811–7526]

Bando McGlocklin Capital Corporationand Bando McGlocklin Small BusinessInvestment Corporation; Notice ofApplications

November 12, 1996.AGENCY: Securities and ExchangeCommission (‘‘SEC’’).ACTION: Notice of applications for ordersunder the Investment Company Act of1940 (the ‘‘Act’’).

APPLICANTS: Bando McGlocklin CapitalCorporation, file no. 811–3787(‘‘BMCC’’) and Bando McGlocklin SmallBusiness Investment Corporation, fileno. 811–7526 (‘‘BMSBIC’’).RELEVANT ACT SECTIONS: Section 8(f).SUMMARY OF APPLICATIONS: Applicantsseek an order declaring that each hasceased to be an investment company.FILING DATES: The applications werefiled on August 7, 1996 and amended onOctober 17, 1996 and November 8, 1996.HEARING OR NOTIFICATION OF HEARING: Anorder granting the applications will beissued unless the SEC orders a hearing.Interested persons may request ahearing by writing to the SEC’sSecretary and serving applicants with acopy of the request, personally or bymail. Hearing requests should bereceived by the SEC by 5:30 p.m. onDecember 16, 1996, and should beaccompanied by proof of service onapplicants, in the form of an affidavit,or, for lawyers, a certificate of service.Hearing requests should state the natureof the writer’s interest, the reason for therequest, and the issues contested.Persons may request notification of ahearing by writing to the SEC’sSecretary.

ADDRESSES: Secretary, SEC, 450 FifthStreet, N.W., Washington, D.C. 20549.Applicants, 13555 Bishops Court,Brookfield, Wisconsin 53005.FOR FURTHER INFORMATION CONTACT:Elaine M. Boggs, Senior Staff Attorney,at (202) 942–0572, or Alison E. Baur,Branch Chief, at (202) 942–0564(Division of Investment Management,Office of Investment CompanyRegulation).SUPPLEMENTARY INFORMATION: Thefollowing is a summary of theapplication. The complete applicationmay be obtained for a fee from the SEC’sPublic Reference Branch.

Applicants’ Representations

1. Applicants are closed-endmanagement investment companies thatare organized as corporations under thelaws of Wisconsin. BMCC registeredunder the Act on Form N–5 on June 29,1983 and filed an initial registrationstatement under the Securities Act of1933 on March 27, 1987, which becameeffective on May 13, 1987. BMSBICregistered under the Act on Form N–5on February 27, 1993. BMCC, directlyand through its wholly-ownedsubsidiaries, BMSBIC and BandoMcGlocklin Small Business LendingCorporation (‘‘BMSBLC’’), provideslong-term secured loans (primarily firstmortgage) to finance the growth,expansion, and modernization of smallbusinesses.

2. Prior to March 26, 1993, BMCCoperated as a small business investmentcompany (‘‘SBIC’’) licensed under theSmall Business Investment Act of 1958(‘‘SBIA’’). On March 26, 1993, BMCCcompleted the formation of a holdingcompany by transferring substantiallyall of its assets (including its license tooperate as an SBIC) and liabilities toBMSBIC. On May 5, 1993, BMCCformed Bando McGlocklin InvestmentCompany as a wholly-owned subsidiaryand transferred a partially developedreal estate parcel to it at fair value. OnMarch 3, 1994, BMCC formed BMSBLC.On June 13, 1994, BMSBLC registered asa closed-end management investmentcompany under the Act. BMSBLCmakes loans to small business concernsqualifying under the SBA section 7(a)loan guarantee program. In connectionwith establishing BMCC’s holdingcompany structure, applicants receivedseveral orders from the SEC (the‘‘Orders’’).1


initial order to permit BMCC to issue one class ofsenior security which is a stock); and 19030 (Oct.15, 1992) (notice) and 19092 (Nov. 10, 1992) (order)(initial order permitting BMCC to establish andoperate BMSBIC as a wholly-owned subsidiary).

2 Applicants have not requested the Commissionto concur with their analysis with respect tosections 3(c)(5) and/or 3(c)(6).

3 The meeting is scheduled for December 16,1996. Proxy materials will be filed with theCommission in connection with the annualmeeting.

3. Applicants’ fundamentalinvestment policies state that, amongother things, each is permitted tooperate as a closed-end managementinvestment company and to engage inthe business of purchasing or sellingreal estate and real estate mortgageloans. BMCC conducts most of itsbusiness through BMSBIC which, as anSBIC registered under the SBIA, issubject to the supervision andregulation of the United States SmallBusiness Administration (‘‘SBA’’).

4. Due to changes in SBA regulations,BMSBIC has decided that it isimpracticable for it to borrow from theSBA. Therefore, BMSBIC intends tosurrender its license as an SBIC andapplicants have filed to deregister underthe Act. After deregistration, BMCC andBMSBIC intend to rely on theexemptions provided by sections 3(c)(6)and 3(c)(5)(C) of the Act, respectively,and operate as real estate investmenttrusts (‘‘REITs’’) pursuant to section 856of the Internal Revenue Code of 1986, asamended. In addition, BMCC intends toliquidate BMSBLC and deregister itunder the Act.

5. After it receives the requestedorder, BMCC intends to acquire 90.9%of the non-voting stock of a newWisconsin chartered bank which will belocated in Pewaukee, Wisconsin (the‘‘Bank’’). BMCC intends to purchaseonly non-voting stock of the Bank sothat it will qualify as a REIT under theInternal Revenue Code.

Applicants’ Legal Analysis1. Section 8(f) of the Act provides that

whenever the SEC finds that a registeredinvestment company has ceased to be aninvestment company it shall declare byorder that the registration of suchcompany will cease to be in effect.Section 3(c)(6) of the Act excludes fromthe definition of investment companyany company engaged, directly orthrough majority-owned subsidiaries, inone or more of the businesses describedin subparagraphs (A), (B), or (C) ofsection 3(c)(5), or in one or more of suchbusinesses (from which not less than25% of such company’s gross incomeduring its last fiscal year was derived)together with an additional business orbusinesses other than investing,reinvesting, owning, holding, or tradingin securities. Section 3(c)(5)(C) excludesfrom the definition of investmentcompany any person who is not engagedin the business of issuing redeemablesecurities, face-amount certificates of

the installment type, or periodicpayment plan certificates and who isprimarily engaged in the business of‘‘purchasing or otherwise acquiringmortgages or other liens on and interestsin real estate.’’

2. Once it is no longer an SBIC,BMSBIC will no longer be able to relyon the exemption provided by section18(k) of the Act, which exempts SBICsfrom the leverage restrictions of sections18(a)(1) (A) and (B) of the Act. Withoutthe exemption provided by section18(k), BMSBIC would be in immediateviolation of section 18(a)(1) (A) and (B)and would not be able to meet suchleverage restrictions in the future.Therefore, BMSBIC has decided toderegister under the Act.

3. BMSBIC states that it is not aninvestment company pursuant tosection 3(c)(5)(C) because it is primarilyengaged in the business of purchasing orotherwise acquiring mortgages or otherliens on and interests in real estate.Applicants represent that as long asBMSBIC relies on section 3(c)(5)(C),BMSBIC will meet criteria establishedby the SEC or its staff by rule, release,letter, or otherwise with regard tosection 3(c)(5)(C).

4. Once BMSBIC is deregistered,BMCC states that it believes that it willbe excepted from the definition of‘‘investment company’’ by virtue ofsection 3(c)(6) because it will beprimarily engaged, directly and throughwholly-owned subsidiaries, in thebusiness of purchasing or otherwiseacquiring mortgages and other liens oninterests in real estate within themeaning of section 3(c)(5)(C). Further,BMCC submits that its plannedacquisition of the Bank will not affect itsstatus under section 3(c)(6).2 Therefore,BMCC seeks an order declaring that itno longer is an investment companyunder the Act.

5. Applicants’ boards of directorshave determined that it is in the bestinterests of applicants and theirshareholders for applicants to deregisteras investment companies. Applicants’boards of directors met six times during1996 to consider the proposal toderegister applicants. In theirdeliberations, the boards considered theadvantage of forming the Bank as asource of funds and the disadvantages ofapplicants being registered under theAct, in particular the difficulty ofmanaging operating companies (ratherthan pooled investment entities) incompliance with the Act.

6. Applicants believe thatderegistering from the Act will affordthem significant benefits and flexibility.In addition, BMCC states that after it isderegistered under the Act, BMCC willcontinue to be a publicly-held companyand subject to the reporting and otherrequirements of the Securities ExchangeAct of 1934 (the ‘‘1934 Act’’). BMCCbelieves that compliance with therequirements of the 1934 Act willprovide sufficient protection to itsstockholders to make continuedregistration under the Act unnecessary.

BMCC’s Conditions

As a condition to the granting of therequested order, BMCC represents that itwill comply with the followingconditions:

1. As required by the Orders, beforeBMCC and BMSBIC change theirfundamental investment policies andderegister as investment companies,BMCC will obtain shareholder approvalof a resolution authorizing it andBMSBIC to change their fundamentalinvestment policies and to deregister asinvestment companies under the Act atthe 1996 annual meeting of applicant.3BMCC will also obtain shareholderapproval of a resolution authorizingBMCC to amend its articles ofincorporation to remove all restrictionsrelating to the Act.

2. BMCC will not operate its businessso as to be an investment companyrequired to be registered under the Act.

BMSBIC’s Conditions

As a condition to the granting of therequested order, BMSBIC represents thatit will comply with the followingconditions:

1. As required by the Orders, beforeBMCC and BMSBIC rescind theirfundamental investment policies andderegister as investment companies,BMCC will obtain shareholder approvalof a resolution authorizing it andBMSBIC to rescind their fundamentalinvestment policies and to deregister asinvestment companies under the Act atthe 1996 annual meeting of BMCC.

2. BMSBIC will not operate itsbusiness so as to be an investmentcompany required to be registered underthe Act.


1 These companies included Central Power andLight Company (‘‘CPL’’), Public Service Company ofOklahoma, Southwestern Electric Power Company,West Texas Utilities Company and Transok, Inc.(‘‘Transok’’).

For the Commission, by the Division ofInvestment Management, pursuant todelegated authority.Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–29442 Filed 11–15–96; 8:45 am]BILLING CODE 8010–01–M

[Release No. 35–26603]

Filings Under the Public Utility HoldingCompany Act of 1935, as amended(‘‘Act’’)

November 8, 1996.Notice is hereby given that the

following filing(s) has/have been madewith the Commission pursuant toprovisions of the Act and rulespromulgated thereunder. All interestedpersons are referred to the application(s)and/or declaration(s) for completestatements of the proposedtransaction(s) summarized below. Theapplication(s) and/or declaration(s) andany amendments thereto is/are availablefor public inspection through theCommission’s Office of PublicReference.

Interested persons wishing tocomment or request a hearing on theapplication(s) and/or declaration(s)should submit their views in writing byDecember 2, 1996, to the Secretary,Securities and Exchange Commission,Washington, DC 20549, and serve acopy on the relevant applicant(s) and/ordeclarant(s) at the address(es) specifiedbelow. Proof of service (by affidavit or,in case of an attorney at law, bycertificate) should be filed with therequest. Any request for hearing shallidentify specifically the issues of fact orlaw that are disputed. A person who sorequests will be notified of any hearing,if ordered, and will receive a copy ofany notice or order issued in the matter.After said date, the application and/ordeclaration, as filed or as amended, maybe granted and/or permitted to becomeeffective.

Central and South West Corporation, etal. (70–7113; 70–7218)

Central and South West Corporation(‘‘CSW’’), a registered holding company,and its wholly-owned nonutilitysubsidiary, CSW Credit, Inc. (‘‘Credit’’),both at 1616 Woodall Rodgers Freeway,Dallas, Texas 75202, have filed a post-effective amendment under sections 9and 10 of the Act to their application-declarations filed in the above filesunder sections 6, 7, 9, 10 and 12 of theAct and rule 45 thereunder.

By orders of the Commission datedJuly 19, 1985 (HCAR No. 23767), July31, 1986 (HCAR No. 24157), February 8,1988 (HCAR No. 24575), December 24,

1991 (HCAR No. 25443) and December22, 1995 (HCAR No. 26437), CSW wasauthorized to organize Credit to engagein the business of factoring accountsreceivable for certain subsidiaries ofCSW 1 and for nonassociate utilitycompanies; Credit was authorized toborrow up to $520 million and $304million in respect of its factoring ofassociate and nonassociate utilityreceivables, respectively; and CSW wasauthorized to make equity investmentsin Credit of up to $80 million and $76million in connection with its factoringof associate and nonassociate utilityreceivables, respectively, in each casethrough December 31, 1996. Credit wasrequired to limit its acquisition ofnonassociate utility receivables so thatthe average amount of such receivablesfor the preceding twelve-month periodoutstanding as of the end of anycalendar month would be less than theaverage amount of receivables acquiredfrom associate companies outstandingas of the end of each calendar monthduring the preceding twelve-monthperiod (‘‘50% Restriction’’).

In 1987, the applicants filed anapplication with the Commissionseeking authorization for Credit to factorthe accounts receivable of nonassociateutilities without regard to the 50%Restriction, to increase Credit’saggregate borrowings and to increaseCSW’s equity investment in Credit. Thisapplication was approved in an initialdecision rendered by an administrativelaw judge on February 23, 1989 (FileNo. 3–7027) (‘‘ALJ Decision’’). Onreview, the Commission, by order datedMarch 2, 1994 (HCAR No. 25995),reversed the initial decision, upheld the50% Restriction and denied theapplication in its entirety.

The applicants state that on May 29,1992, CSW and CPL entered into asettlement agreement with HoustonIndustries Incorporated and itssubsidiary, Houston Lighting & PowerCompany (‘‘HLP’’), to resolve a numberof disputes between the two systems(‘‘1992 Settlement’’). As part of thenormalization of business relationsbetween the parties, Credit and HLPagreed to arrangements whereby Creditwould purchase electric utility accountsreceivable from HLP. The 1992Settlement was entered into when theALJ Decision, stating that the 50%Restriction did not apply to Credit, wasin effect. The applicants state that CPLand HLP reasonably believed, whenthey agreed upon the 1992 Settlement,

that the factoring of HLP receivablesunder the 1992 Settlement would not besubject to the 50% Restriction. Theyalso state that the application of the50% Restriction diminishes the value tobe received by CPL from the 1992Settlement.

By order dated December 8, 1992(HCAR No. 25696), Credit wasauthorized to borrow up to anadditional $650 million in the aggregateoutstanding at any one time during the121⁄2 year term of the 1992 Settlementfor the sole purpose of purchasingaccounts receivable of HLP. The initialapplication in connection with thisorder requested authorization for thefactoring of HLP receivables withoutregard to the 50% Restriction. Thisrequest was withdrawn, however, at therequest of the Commission staff,pending the outcome of AdministrativeProceeding File No. 3–7027. In an orderdated December 29, 1992 (HCAR No.25720), Credit was authorized to sell asufficient amount of HLP receivables tounrelated third parties in order tocomply with the 50% Restriction.

On June 6, 1996, CSW sold Transokand used a portion of the proceeds fromthe sale to repay outstanding debt. Overthe twelve months prior to Transok’ssale, Credit factored a rolling monthlyaverage of $87.4 million of Transokaccounts receivable, and CSW estimatesthat this amount would have grownwith Transok’s business. As a result ofthe sale, CSW has significantly lessassociate receivables to factor and,through operation of the 50%Restriction, is forced to factor lessnonassociate receivables and sellreceivables of established nonassociatecustomers. The aggregate effect is toreduce the volume of receivablesfactored by Credit by twice the amountof Transok receivables.

As a result of these twocircumstances, the applicants requestauthorization for CSW to factor up to$450 million of HLP accounts receivableand up to $100 million of accountsreceivable of other nonassociate utilitycompanies, on a twelve-month rollingmonthly average basis, throughDecember 31, 2000. To the extent thatsuch factoring activities causenonassociate accounts receivablefactored by Credit to exceed the 50%Restriction at any time during thatperiod, the applicants request atemporary exemption from the 50%Restriction.

Central and South West Corporation, etal. (70–7113; 70–7218)

Central and South West Corporation(‘‘CSW’’), a registered holding company,and its wholly-owned nonutility


subsidiary, CSW Credit, Inc. (‘‘Credit’’),both of 1616 Woodall Rogers Freeway,P.O. Box 660164, Dallas, Texas 75202,have filed a post-effective amendment totheir application-declarations in theabove files, under sections 6(a), 7, 9(a),10 and 12(b) of the Act and rules 45 and54 thereunder, proposing to extend theirexisting authorizations.

By order dated July 19, 1985 (HCARNo. 23767) (‘‘1985 Order’’), CSW wasauthorized, among other things, toorganize Credit to purchase the accountsreceivable of the operating companies ofCSW at a discount and to finance thesepurchases with the issuance and sale ofdebt. Credit was authorized to borrowup to $320 million and CSW wasauthorized to make equity investmentsin Credit of up to an aggregate of $80million through December 31, 1986.

By order dated July 31, 1986 (HCARNo. 24157) (‘‘1986 Order’’), Credit wasauthorized to expand its business to thefactoring of accounts receivable ofnonaffiliated electric utility companies.In order to finance such transactions,Credit was authorized to borrow up toan additional $160 million and CSWwas authorized to make additionalequity investments in Credit of up to anaggregate of $40 million, throughDecember 31, 1988. The 1986 Order alsorequired Credit to limit its acquisition ofutility receivables from nonassociateutilities so that the average amount ofsuch receivables for the precedingtwelve-month period outstanding as ofthe end of any calendar month would beless than the average amount ofreceivables acquired from CSWassociate companies outstanding as ofthe end of each calendar month duringthe preceding twelve-month period.Further, the 1986 Order extended theauthority of the 1985 Order untilDecember 31, 1988.

By order dated February 8, 1988(HCAR No. 24575), Credit wasauthorized, among other things, toborrow, through December 31, 1989, upto $320 million and $304 million tofinance the factoring of affiliate andnonaffiliate receivables, respectively.CSW was authorized to make equityinvestments in Credit of up to anaggregate of $80 million and $76 millionin connection with the factoring ofaffiliate and nonaffiliate receivables,respectively. This authority wasextended through December 31, 1990 byorder dated December 27, 1989 (HCARNo. 25009).

By order dated August 30, 1990(HCAR No. 25138), Credit wasauthorized to lower its equity ratio to noless than 5%.

By orders dated December 21, 1990(HCAR No. 25228) and December 24,

1991 (HCAR No. 25443) (‘‘1991 Order’’),Credit’s existing authority was extendedthrough December 31, 1991 andDecember 31, 1992, respectively. Inaddition, the 1991 Order authorizedCredit to borrow up to an additional$200 million to finance the factoring ofassociate receivables.

The applicants state that on May 29,1992, CSW and Central Power and LightCompany entered into a settlementagreement with Houston IndustriesIncorporated and its subsidiary,Houston Lighting & Power Company(‘‘HLP’’), to resolve a number ofdisputes between the two systems(‘‘1992 Agreement’’). As part of thenormalization of business relationsbetween the parties, Credit and HLPagreed to arrangements whereby Creditwould purchase accounts receivablefrom HLP. By order dated December 8,1992 (HCAR No. 25696), Credit wasauthorized to borrow up to anadditional $650 million in the aggregateoutstanding at any one time during the121⁄2 year term of the 1992 Agreementfor the sole purpose of purchasingaccounts receivable of HLP.

By orders dated December 9, 1992,December 21, 1993, December 16, 1994and December 22, 1995 (HCAR Nos.25698, 25959, 26190 and 26437,respectively), Credit’s existing authoritywas extended through December 31,1993, December 31, 1994, December 31,1995 and December 31, 1996,respectively.

Pursuant to the orders summarizedabove, the following authority has beengranted: (1) Credit has been authorizedto borrow $824 million, of which $520million could be used to purchasereceivables of affiliated companies and$304 million could be used to purchasereceivables of nonaffiliated companies;and (2) CSW has been authorized tomake equity investments in Credit of upto an aggregate of $156 million, ofwhich $80 million could be used topurchase receivables of affiliatedcompanies and $76 million could beused to purchase receivables ofnonaffiliated companies.

CSW and Credit now propose toextend the authorizations under thepreviously granted orders throughDecember 31, 2000.

GPU, Inc. et al. (70–8593)GPU, Inc. (‘‘GPU’’), of 100 Interpace

Parkway, Parsippany, New Jersey 07054,a registered holding company, and twoof its nonutility subsidiaries, GPUInternational, Inc. and EI Services, Inc.,both of One Upper Pond Road,Parsippany, New Jersey 07054, itsoperating companies, Jersey CentralPower & Light Company, Metropolitan

Edison Company and PennsylvaniaElectric Company, each of P.O. Box16001, Reading, Pennsylvania 19640,and its service company, GPU Service,Inc., of 100 Interpace Parkway,Parsippany, New Jersey 07054, havefiled a post-effective amendment undersections 6(a), 7, 9(a), 10, 12(b), 32 and33 of the Act and rules 45 and 53thereunder, to their application-declaration, under sections 6(a), 7, 9(a),10, 12(b), 32 and 33 of the Act and rules45, 52, 53 and 54 thereunder, in theabove file.

By orders of the Commission datedJuly 6, 1995 and January 19, 1996(HCAR Nos. 26326 and 26457,respectively) (‘‘Orders’’), among otherthings, GPU is authorized to acquire andown interests in exempt wholesalegenerators (‘‘EWGs’’) and foreign utilitycompanies (‘‘FUCOs’’), as defined insections 32 and 33 of the Act,respectively (collectively, ‘‘ExemptEntities’’), through subsidiaries(‘‘Subsidiaries’’), that are not ExemptEntities, but are engaged, directly orindirectly, and exclusively, in thebusiness of owning and holding theinterests and securities of one or moreExempt Entities and related projectdevelopment activities. GPU isauthorized to make equity investmentsin Subsidiaries in the form of capitalstock or shares, trust certificates,partnership interests or other equity orparticipation interests; and, throughDecember 31, 1997, to makeinvestments in one or more Subsidiariesin the form of cash capital contributionsor open account advances; loansevidenced by promissory notes;guarantees by GPU of the principal of,or interest on, any promissory notes orother evidences of indebtedness orobligations of any Subsidiary, or ofGPU’s undertaking to contribute equityto a Subsidiary; assumption of liabilitiesof a Subsidiary; and reimbursementagreements with banks entered into tosupport letters of credit delivered assecurity for GPU’s equity contributionobligation to a Subsidiary or otherwisein connection with a Subsidiary’sproject development activities.

GPU is also authorized to makeinvestments in Exempt Entities, throughDecember 31, 1997, in the form ofguarantees of the indebtedness of otherobligations of one or more ExemptEntities; assumption of liabilities of oneor more Exempt Entities; and guaranteesand letter of credit reimbursementagreements in support of equitycontribution obligations or otherwise inconnection with project developmentactivities for one or more ExemptEntities.


2 In this post-effective amendment, GPU is notrequesting authorization to issue additionalsecurities to increase its investment in ExemptEntities.

GPU’s direct or indirect investmentsin Subsidiaries and Exempt Entities arefunded from available cash or pursuantto financing transactions authorized bythe Commission.2 Pursuant to theOrders, GPU’s ‘‘aggregate investment’’(as defined in rule 53(a)(1)(i)) inSubsidiaries and Exempt Entities shallnot exceed 50% of GPU’s ‘‘consolidatedretained earnings’’ (as defined in rule53(a)(1)(ii)). This investment limitationis consistent with the 50% limitation inrule 53(a)(1).

GPU requests the Commission tomodify this limitation, and exempt itfrom the requirements of rule 53(a)(1),to permit GPU to invest directly orindirectly in Exempt Entities andSubsidiaries in an aggregate amountthat, when added to GPU’s aggregateinvestment, direct and indirect, in allExempt Entities and Subsidiaries,would not at any time exceed 100% ofGPU’s consolidated retained earnings.The current amount of GPU’s aggregateinvestment, direct and indirect, inExempt Entities and Subsidiaries(approximately $914 million as of June30, 1996) represents approximately 45%of its consolidated retained earnings(approximately $2.05 billion as of June30, 1996). Increasing this limitation asGPU proposes would allow additionalinvestments, direct and indirect, inExempt Entities and Subsidiaries ofapproximately $1.113 billion.

GPU intends to make substantialadditional investments in EWGs andFUCOs, primarily because: (1) over thelast five years there has been limitedcapital investment in GPU’s operatingcompanies, and it is projected that GPUwill not be required to make anysignificant equity investment in anyGPU operating company for at least thenext five years; (2) acquisitions of EWGsand FUCOs give GPU the opportunity tocontinue to grow in an industry sectorin which GPU has decades ofexperience, and to diversify overallasset risk; and (3) GPU has purposelyinvested in utility systems in foreigncountries, which have moved furtherthan the United States towardderegulation and full competition inboth retail and wholesale electricitymarkets, in order to gain valuableexperience with deregulated marketsthat will enhance GPU’s ability to makeits core domestic utility operations morecompetitive and efficient in the futureas the United States moves towardderegulation and increased competition.Applicants also describe comprehensive

procedures that GPU has established toidentify and address risks involved inEWG and FUCO investments.

GPU states that the additionalinvestments in EWGs and FUCOs to theproposed increased level will not havea substantial adverse impact on thefinancial integrity of the GPU system oran adverse impact on any utilitysubsidiary of GPU or its customers or onthe ability of the affected statecommissions to protect such customers.Applicants also state that GPU will notseek recovery through higher rates to itsutility subsidiaries’ customers in orderto compensate GPU for any possiblelosses that it may sustain oninvestments in EWGs and FUCOs or forany inadequate returns on suchinvestments.

The Columbia Gas System, Inc. et al.(70–8925)

The Columbia Gas System, Inc.(‘‘Columbia’’), a registered holdingcompany, its service companysubsidiary, Columbia Gas SystemService Corporation (‘‘Service’’), itsliquefied natural gas subsidiary,Columbia LNG Corporation, its tradingsubsidiary, Columbia Atlantic TradingCorporation (‘‘Columbia Atlantic’’), alllocated at 12355 Sunrise Valley Drive,Suite 300, Reston, Virginia 20191–3458;its distribution subsidiaries, ColumbiaGas of Ohio, Inc. (‘‘Columbia Ohio’’),Columbia Gas of Pennsylvania, Inc.(‘‘Columbia Pennsylvania’’), ColumbiaGas of Kentucky, Inc. (‘‘ColumbiaKentucky’’), Columbia Gas of Maryland,Inc. (‘‘Columbia Maryland’’),Commonwealth Gas Services, Inc.(‘‘Commonwealth Services’’) (together,‘‘Utility Subsidiaries’’), all located at200 Civic Center Drive, Columbia, Ohio43215; its transmission subsidiaries,Columbia Gas Transmission Corporation(‘‘Columbia Transmission’’) andColumbia Gulf Transmission Company(‘‘Columbia Gulf’’), both located at 1700MacCorkle Avenue, S.E., Charleston,West Virginia 25314; its exploration andproduction subsidiary, ColumbiaNatural Resources, Inc. (‘‘ColumbiaNatural’’), 900 Pennsylvania Ave.,Charleston, West Virginia 25302; itspropane distribution subsidiaries,Commonwealth Propane, Inc. andColumbia Propane Corporation(‘‘Columbia Propane’’), both located at800 Moorefield Park Drive, Richmond,Virginia 23236; its energy services andmarketing subsidiaries, ColumbiaEnergy Services Corporation, ColumbiaService Partners, Inc. and ColumbiaEnergy Marketing Corporation, alllocated at 2581 Washington Road,Upper Saint Claire, Pennsylvania 15241;its network services subsidiary,

Columbia Network ServicesCorporation, 1600 Dublin Road,Columbus, Ohio 43215–1082; and itsother subsidiaries, Tristar VenturesCorporation (‘‘TriStar Ventures’’),Tristar Capital Corporation (‘‘TriStarCapital’’), Tristar Pedrick LimitedCorporation, Tristar Pedrick GeneralCorporation, Tristar BinghamtonLimited Corporation, TristarBinghamton General Corporation,Tristar Vineland Limited Corporation,Tristar Vineland General Corporation,Tristar Rumford Limited Corporation,Tristar Georgetown LimitedCorporation, Tristar GeorgetownGeneral Corporation, Tristar Fuel CellsCorporation, TVC Nine Corporation,TVC Ten Corporation and TristarSystem, Inc., all located at 205 VanBuren, Herndon, Virginia 22070(together, ‘‘System’’ or ‘‘Applicants’’)(all subsidiaries, ‘‘Subsidiaries’’) (allsubsidiary companies excluding theUtility Subsidiaries, ‘‘NonutilitySubsidiaries’’) have filed a jointapplication-declaration under sections6, 7, 9, 10, 12(b), 12(c), 12(e), 12(f), 32and 33 of the Act and rules 42, 43, 45and 53 thereunder.

The System is seeking, for the periodfrom the effective date of an order inthis matter through December 31, 2001,as more fully described, below,Commission authorization for: (1)external financing by Columbia,including requests for (a) short-termfinancing in the form of borrowingunder a revolving credit agreement,commercial paper and bid notes; (b)long-term financing; (c) hedging theinterest risk associated with existingand to be issued fixed and floating ratedebt; (d) equity financing; and (e) theissuance of other securities; (2)intrasystem financing of Subsidiaries,including: (a) long-term debt; (b) short-term debt, including continuing of theColumbia system money pool (‘‘MoneyPool’’); (c) guarantees; (d) payingdividends to the extent permitted byDelaware law from additional capitalsurplus; and (e) reincorporation ofColumbia Natural in Delaware; (3)external financing by NonutilitySubsidiaries and the formation offinancing entities; (4) financing for thepurpose of acquiring exempt wholesalegenerators (‘‘EWGs’’) and foreign utilitycompanies (‘‘FUCOs’’).

The Applicants request authority toengage in various financing and relatedtransactions, for the period from theeffective date of an order in this matterthrough December 31, 2001, for whichthe specific terms and conditions arenot at this time known. Theauthorization is sought subject to thefollowing conditions: (1) Columbia will


3 See Columbia Gas System, Inc., Holding Co. ActRelease No. 26361 (August 25, 1995).

maintain its long-term debt rating at aninvestment grade level as established bya nationally recognized statistical ratingorganization, as that term is used in rule15c3–1(c)(2)(vi)(F) of the SecuritiesExchange Act of 1934; (2) its commonequity, as reflected in its most recentForm 10–K or Form 10–Q and asadjusted to reflect subsequent eventsthat affect capitalization, does not fallbelow 30% of its consolidatedcapitalization; (3) the effective cost ofmoney on debt borrowing occurringpursuant to this authorization will notexceed 300 basis points overcomparable term U.S. Treasurysecurities; (4) the effective cost ofmoney on preferred stock and otherfixed-income oriented securities willnot exceed 500 basis points over 30-yearterm U.S. Treasury securities; (5) thematurity of indebtedness will notexceed 50 years; (6) the underwritingfees, commissions, or other similarremuneration paid in connection withthe non-competitive bid issue, sale ordistribution of a security in this matterwill not exceed 5% of the principal ortotal amount of the financing; (7) theaggregate amount of external, long-termdebt and equity financing issued byColumbia, through December 31, 2001,will not exceed $5 billion of long-termdebt and equity financing or more than$1 billion of short-term borrowingoutstanding at any one time; (8) theproceeds from the sale of securities byColumbia in external financingtransactions will be added toColumbia’s treasury and used forgeneral and corporate purposesincluding: (a) the financing, in part, ofthe capital expenditures of Columbiaand its Subsidiaries; (b) in the case ofshort-term debt, the financing of gasstorage inventories, other workingcapital requirements and capitalspending of the System; (c) theacquisition of interests in EWGs andFUCOs; and/or (d) the acquisition,retirement, or redemption of securitiesof which Columbia is an issuer withoutthe need for prior Commission approvalpursuant to rule 42 or a successor rule.Any deviations from these conditionswould require further Commissionapproval.

External Short-Term FinancingColumbia currently obtains funds

externally through short-term debtfinancing under the $1 billion CreditAgreement dated as of November 28,1995, between Columbia and a group ofbanks with Citibank, N.A. as Agent(‘‘Credit Facility’’).3 To provide

financing for general corporatepurposes, including financing gasstorage inventories, other workingcapital requirements and constructionspending until long-term financing canbe obtained, Columbia requestsauthorization to have outstanding at anyone time, through December 31, 2001,up to $1 billion of short-term debtconsisting of borrowing under the CreditFacility, the issuance of commercialpaper, the sale of bid notes, discussedbelow, and other forms of short-termfinancing generally available toborrowers with investment grade creditratings.

In order to consolidate all ordersauthorizing financing under one file,Columbia requests that theauthorization for the Credit Facility bewithdrawn and superseded by the orderof the Commission sought herein.Columbia further requests authorizationto amend the Credit Facility withoutfurther Commission authorizationprovided that the maturity date does notgo beyond December 31, 2001, and theprincipal amount and borrowingmargins do not increase.

Commercial paper would be sold,from time-to-time, in establisheddomestic or European commercial papermarkets to dealers at the prevailingdiscount rate per annum, or at theprevailing coupon rate per annum, atthe date of issuance. It is expected thatthe dealers acquiring commercial paperfrom Columbia will re-offer such paperat a discount to corporate, institutionaland, with respect to Europeancommercial paper, to individualinvestors.

Back-up bank lines of credit for 100%of the outstanding amount ofcommercial paper are generally requiredby credit rating agencies. The CreditFacility will back-up Columbia’scommercial paper program, thusnegating the need for additional lines ofcredit.

Bid Notes AgreementsColumbia also requests approval to

enter into individual agreements (‘‘BidNote Agreements’’) with one or morecommercial banks which are lendersunder the Credit Facility. The Bid NoteAgreements would permit Columbia tonegotiate with one or more banks (‘‘BidNote Lender[s]’’) on any given day forsuch Bid Note Lender, or any affiliate orsubsidiary of such lender, to purchasepromissory notes (‘‘Bid Notes’’) directlyfrom Columbia. Such notes would bearinterest rates comparable to, or lowerthan, those available through otherproposed forms of short-term borrowingwith similar terms. The maturity of theBid Notes would not exceed 270 days,

and the total amount of Bid Notesoutstanding at any time, when added tothe aggregate amounts of short-termborrowing outstanding under otherforms of short-term borrowing, wouldnot exceed $1 billion.

Other Short-Term SecuritiesColumbia proposes to engage in other

types of short-term financing as it maydeem appropriate in light of its needsand market conditions at the time ofissuance. Such short-term financingcould include, without limitation, bankborrowing and medium-term notesissued under its Indenture, dated as ofNovember 28, 1995, between Columbiaand Marine Midland Bank, Trustee, asamended (‘‘Indenture’’). The Indentureprovides that the specific terms of anysecurities issued be set by resolution ofColumbia’s Board of Directors. Thematurities of such borrowing would notexceed one year. In no case will theoutstanding balance of all short-termborrowing exceed $1 billion.

Long-Term FinancingColumbia proposes to issue from

time-to-time, prior to December 31,2001, long-term securities aggregatingnot more than $5 billion. Columbiaproposes to issue any combination ofdebentures, which may be in the formof medium term notes, and/or commonstock, preferred stock, or other equityand debt securities in an aggregateamount not to exceed $5 billion. Otherexamples of such long-term debtsecurities would include, but not belimited to, convertible debt,subordinated debt, bank borrowing, andsecurities with call or put options. Anylong-term debt security would havesuch designation, aggregate principalamount, maturity, interest rate(s) ormethods of determining the same, termsof payment of interest, redemptionprovisions, non-refunding provisions,sinking fund terms, conversion or putterms and other terms and conditions asColumbia may determine at the time ofissuance. Debentures and medium-termnotes would be issued under theIndenture.

Such securities may be issued andsold pursuant to standard underwritingagreements. Public distribution may beeffected through private negotiationswith underwriters, dealers or agents, orthrough competitive bidding amongunderwriters. In addition, suchsecurities may be issued and soldthrough private placements or othernon-public offerings to one or morepersons or distribution by dividend orotherwise to existing shareholders. Allsuch debentures and stock sales will beat rates or prices and under conditions


negotiated, or based upon, or otherwisedetermined by, competitive capitalmarkets.

Interest Rate Swaps and Other HedgingStrategies

Columbia proposes to enter intohedging transactions to be initiatedprior to December 31, 2001, to convertall or a portion of existing floating ratedebt from time-to-time to fixed rate debtor to convert all or a portion of existingfixed rate debt from time-to-time tofloating rate debt using interest rateswaps or other derivative productsdesigned for such purposes.

Interest Rate Swaps for Existing DebtColumbia proposes to enter into one

or more interest rate swaps (‘‘Swaps’’),and one or more derivative instruments,such as interest rate caps, interest ratefloors and interest rate collars(collectively, ‘‘DerivativeTransactions’’), with one or morecounterparties from time-to-timethrough December 31, 2001, in nationalamounts aggregating not in excess of theamount of debt outstanding at any onetime.

Columbia proposes to use twodifferent swap strategies. Under oneswap strategy, Columbia would agree tomake payments of interest to acounterparty, payable periodically. Theinterest would be payable at a variableor floating rate index and would becalculated on a notional (i.e., principal)amount. In return, the counterpartywould agree to make payments toColumbia based upon the same notionalamount and at an agreed upon fixedinterest rate. This would be a ‘‘floating-to-fixed swap’’ on Columbia’s part.Under another swap strategy Columbiawould pay a fixed interest rate andreceive a variable interest rate on anotional amount. This would be a‘‘fixed-to-floating swap’’ on Columbia’spart. Columbia will enter into Swapsand/or Derivative Transactions onlywith creditworthy counterparties.

Hedging Interest Rate Risk forAnticipated Debt

Columbia also seeks authorization toenter into an interest rate hedgingprogram (‘‘Hedge Program’’) within alimited time prior to the issuance oflong-term debt securities. The HedgeProgram would only be undertakenpursuant to the express approval of theColumbia Board of Directors and wouldonly be authorized to occur within 90days of the issuance of long-term debtsecurities.

The Hedge Program would be utilizedto fix and/or limit the interest rate riskexposure of any new issuance through:

(1) a forward sale of exchange-tradedU.S. Treasury futures contracts, U.S.Treasury securities and/or a forwardswap (each a ‘‘Forward Sale’’); (2) thepurchase of put options on U.S.Treasury securities (‘‘Put OptionsPurchase’’); (3) a Put Options Purchasein combination with the sale of calloptions on U.S. Treasury securities(‘‘Zero Cost Collar’’); or (4) somecombination of a Forward Sale, PutOptions Purchase and/or Zero CostCollar. The program may be executedon-exchange (‘‘On-Exchange Trades’’)with brokers through the opening offutures and/or options positions tradedon the Chicago Board of Trade, theopening of over-the-counter positionswith one or more counterparties (‘‘Off-Exchange Trades’’) or a combination ofOn-Exchange Trades and Off-ExchangeTrades. Columbia will determine theoptimal structure of the Hedge Programat the time of execution. Columbia maydecide to lock in interest rates and/orlimit its exposure to interest rateincreases. All open positions under theHedge Program will be closed on orprior to the date of the new issuanceand Columbia will not, at any time, takepossession of the underlying U.S.Treasury securities. Further, no hedgeposition will be outstanding for morethan 90 days.

All transactions entered into underthe Hedge Program will be bona fidehedges of interest rate risk. To prohibitthe possibility of ‘‘speculative’’transactions, each transaction, or set oftransactions, under the Hedge Programmust be approved by the ColumbiaHedge Committee, consisting of seniorexecutive officers, and authorized byresolution of Columbia’s Board ofDirectors prior to its execution.

Equity FinancingColumbia proposes, through

December 31, 2001, to issue equitysecurities in an amount, whencombined with the proposed long-termdebt securities, will not exceed $5billion. Such issuance would includecommon stock issued pursuant to theLong-Term Incentive Plan whereoptions to purchase up to 3 millionshares of common stock may be issuedover a ten-year period, through February21, 2006, monthly or quarterly incomepreferred securities, rights, options and/or warrants convertible into common orpreferred stock and common and/orpreferred stock issued upon the exerciseof convertible debt, rights, options,warrants and/or similar securities.

From time-to-time in the future, otheremployee benefit plans may be adoptedby Columbia or a divided reinvestmentplan or stock purchase plan may be

adopted, providing for the issuances ofcommon stock. For instance, a dividendreinvestment plan and direct stockpurchase plan allowing sales to personsnot already shareholders may beimplemented. Columbia now proposesto issue and/or sell shares of commonstock pursuant to the existing plan andsimilar plan or plans fundingarrangements hereinafter adopted and toengage in other sales of its treasuryshares, if any, for reasonable businesspurposes without any additional priorCommission order through December31, 2001, except that the options topurchase shares under the Long-TermIncentive Plan may be issued from time-to-time until February 21, 2006. Stocktransactions of this variety would thusbe treated the same as other stocktransactions permitted pursuant to thisproposal. Such authorization wouldsupersede the Long-Term Incentive Planauthorization.

Other SecuritiesIn addition to the specific securities

for which authorization is sought,Columbia also proposes to issue othertypes of securities that it deemsappropriate during the period endingDecember 31, 2001. Columbia requeststhat the Commission reserve jurisdictionover the issuance of additional types ofsecurities. Columbia also undertakes tofile a post-effective amendment whichwill describe the general terms of eachsuch security and request asupplemental order of the Commissionauthorizing the issuance thereof byColumbia.

Intrasystem FinancingThe Maryland Public Service

Commission does not exercisejurisdiction over the issuance byColumbia Maryland of long or short-term securities. The Kentucky, Ohio andPennsylvania utility commissions donot exercise jurisdiction over theissuance of short-term debt.Commission authorization is, therefore,requested for the issuance, from time-to-time, prior to December 31, 2001, ofshort-term securities by ColumbiaMaryland, Columbia Kentucky,Columbia Ohio and ColumbiaPennsylvania and for the issuance, fromtime-to-time, prior to December 31,2001, of long-term securities byColumbia Maryland and their purchase,in each instance, by Columbia.

Internal Long-Term Financing byUtility Subsidiaries

Columbia and Columbia Maryland areseeking Commission authorization forthe sale of long-term debt securities(‘‘Notes’’) by Columbia Maryland to


Columbia or the sale of common stockby Columbia Maryland to Columbia ina cumulative amount not to exceed $30million for the period through December31, 2001.

Columbia Maryland plans to financepart of its 1997–2001 capitalexpenditure programs with fundsgenerated from the sale of Notes andcommon stock to Columbia for cash.Columbia states that the portion of thefinancing to be effected through the saleof stock cannot be ascertained at thistime. Columbia would continue tofinance Columbia Maryland to maintaina capital structure in a mannerconsistent with that of a company withan investment grade credit rating.

The interest rate on the Notes will bethe rate, including issuance costs, forthe most recent long-term debtsecurities issued by Columbia duringthe previous calendar quarter. If nolong-term debt securities were issuedduring the previous calendar quarter,the interest rate will be either theestimated new long-term rate that wouldbe in effect if Columbia were to issuesecurities, as projected by a majorinvestment bank, or the prevailingmarket rate for a newly-issued ‘‘A’’ ratedutility bond. The current rate on anewly issued ‘‘A’’ rated 25–30 yearutility bond is 8%. A default rate equalto 2% per annum in excess of the statedrate on unpaid principal or interestamounts would be assessed if anyinterest or principal payment becomespast due. The principal amount of theNotes will be repaid over a term notexceeding thirty years.

The Notes will be issued under apreviously authorized loan agreement.The loan agreement provides forColumbia Maryland to issue eithersecured or unsecured debt securities toColumbia from time-to-time in exchangefor cash.

Internal Long-Term Financing byNonutility Subsidiaries

The Nonutility Subsidiaries proposeto issue and Columbia proposes toacquire, through December 31, 2001,other types of securities which do notqualify for exemption under rule 52.Columbia and the Nonutilitysubsidiaries request that theCommission reserve jurisdiction overthe issuance of such additionalsecurities. The parties undertake to filea post-effective amendment in thisproceeding describing the general termsof each security and requesting asupplemental order of the Commissionauthorizing the issuance thereof by thesubject Nonutility Subsidiary.

Continuation of Money Pool/InternalShort-Term Financing

The Subsidiaries require short-termfunds to meet normal working capitalrequirements. It is proposed that theSubsidiaries borrow short-term fundsfrom the Money Pool, through December31, 2001. The maximum amount ofMoney Pool borrowing outstanding foreach Subsidiary will be determined byColumbia and the Subsidiaries inaccordance with business needs. Actualshort-term financing would be issuedbased on working capital requirementsand any interim financing needed tobridge between issuances of long-termcapital. The maximum short-term debtto be issued by Columbia Pennsylvania,Columbia Ohio, Columbia Marylandand Columbia Kentucky will not exceed40% of their total capitalization.

All short-term borrowing will bethrough the Money Pool with Serviceacting as agent. Columbia may invest inthe Money Pool, but will not borrowfrom the Money Pool. Should there beinsufficient funds in the Money Pool tomeet the Subsidiaries’ aggregate short-term needs for funds, Columbia willborrow or issue short-term securitiesand invest the proceeds in the MoneyPool to fund the shortage.

The cost of money on all short-termadvances and the investments rate formoneys invested in the Money Pool willbe the interest rate per annum equal tothe Money Pool’s weighted averageshort-term investment rate and/orColumbia’s short term borrowing rate.Should there be no Money Poolinvestments or Columbia borrowing, thecost of money will be the prior month’saverage Federal Funds rate as publishedin the Federal Reserve StatisticalRelease, Publication H. 15 (519). Adefault rate equal to 2% per annumabove the pre-default rate on unpaidprincipal or interest amounts will beassessed if any interest or principalpayment becomes past due. For MoneyPool participation by new direct orindirect subsidiaries engaged in newlines of business, Columbia requeststhat the Commission reservejurisdiction.

Guarantees

Columbia and the NonutilitySubsidiaries and any nonutilitysubsidiary established prior toDecember 31, 2001, requestauthorization to enter guaranteearrangements, obtain letters of credit,and otherwise provide credit supportwith respect to obligations of theirrespective subsidiaries as may beneeded and appropriate to enable themto carry on in the ordinary course of

their respective businesses. Themaximum aggregate limit on all suchcredit support by Columbia and by allSubsidiaries at any time will be $500million. The $500 million of guaranteesis in addition to any financing requestedin this matter. Columbia would chargea cost-based fee for its credit supportunder the guarantee arrangement.

Reduction of Authorized Shares/Dividends

Columbia Atlantic, Columbia Gulf,Columbia Transmission, ColumbiaMaryland, Service, Columbia Propane,Tristar Capital and Tristar Venturespropose to reduce their authorized andoutstanding shares of common stock to3,000 shares or less via a reverse stocksplit. The reverse stock split will beaccomplished through an amendment totheir respective certificates ofincorporation.

Based on reducing their respectiveauthorized shares to 3,000 or less, theSubsidiaries will save an estimatedaggregate amount of $125,000 infranchise taxes each year. As a result ofthis transaction, additional capitalsurplus will be created. It is requestedthat each of the subsidiaries receiveauthorization to pay dividends from thesurplus created by the reverse stocksplit transaction; however, noextraordinary dividends are anticipatedat this time.

Reincorporation of Columbia NaturalColumbia Natural proposes to

reincorporate in Delaware. Under a Planof Reorganization and Merger, all of theassets and trade liabilities of ColumbiaNatural will be transferred to ColumbiaNatural (DE) in exchange for commonstock of Columbia Natural (DE) whichwould simultaneously be transferred toColumbia in exchange for alloutstanding shares of Columbia Natural,leaving Columbia Natural (DE) thesurviving company.

The merger will qualify as a tax-freereorganization under sections 368(a)(1)(A) and (F) of the Internal Revenue Codeof 1986, as amended. Columbia Natural(DE) will succeed to all of the rights andassets of Columbia Natural and willassume all of its liabilities andobligations. The officers and directors ofColumbia Natural will become theofficers and directors of ColumbiaNatural (DE).

External Nonexempt Financing byNonutilities

The Nonutility Subsidiaries areexpected to be active in thedevelopment and expansion of energy-related, nonutility businesses in theSystem. The Nonutility Subsidiaries


may engage in types of securityfinancing with nonaffiliates which donot qualify for the application of Rule52. The Nonutility Subsidiaries,therefore, request that the Commissionreserve jurisdiction over the issuance ofsuch additional types of securities. Theyalso undertake to cause a post-effectiveamendment to be filed in thisproceeding which will describe thegeneral terms of each such security andrequest a supplemental order of theCommission authorizing the issuancethereof by the subject NonutilitySubsidiary.

Financing Entities

Columbia and the NonutilitySubsidiaries propose to organize newcorporations, trusts, partnerships orother entities created to facilitatefinancing through their issue to thirdparties of monthly and quarterly incomepreferred securities. Columbia andNonutility Subsidiaries seek authority toissue such securities to third parties tothe extent required under the Act.Additionally, request is made forauthorization with respect to: (1) Theissuance of debentures or otherevidences of indebtedness by Columbiato a financing entity in return for theproceeds of the financing; and (2) theacquisition by Columbia of votinginterests or equity securities issued bythe financing entity to establishColumbia’s ownership of the financingentity. Columbia and the NonutilitySubsidiaries also request authorizationto enter into expense agreements withtheir respective financing entities,pursuant to which they would agree topay all expenses of such entity.

Financing of EWGs and FUCOs

Columbia currently owns no equityinterests in either EWGs or FUCOs.Sections 32 and 33 of the Act permit aregistered holding company to acquireand maintain interests in one or moreEWGs and FUCOs without the need toapply for or receive approval from theCommission. To the extent that fundsfor one or more projects are required inexcess of internally generated funds,Columbia hereby requests Commissionauthorization to invest proceeds fromthe proposed securities to be issuedherein for the purpose of financing theacquisition of EWGs and FUCOs incompliance with rule 53(a)(1) such thatColumbia’s aggregate investment at anyone time during the period covered bythis Application will not exceed 50% ofits ‘‘consolidated retained earnings,’’ asdefined in rule 53(a)(1)(ii).

Gulf Power Company (70–8947)

Gulf Power Company (‘‘Gulf Power’’),500 Bayfront Parkway, Pensacola,Florida 32501, an electric utilitysubsidiary of The Southern Company, aregistered holding company, has filed adeclaration under sections 6(a), 7 and12(d) of the Act and rules 44 and 54thereunder.

As described in more detail below,Gulf Power proposes to issue and sellfrom time to time, prior to January 1,2004, short-term and/or term loan notesto lenders, commercial paper to orthrough dealers and/or issue non-negotiable promissory notes to publicentities for their revenue anticipationnotes in an aggregate principal amountat any one time outstanding of up to$300 million. Gulf Power states that anyproposed borrowings may be, and anysuch borrowings in excess of themaximum aggregate principal amount ofunsecured debt permitted under itscharter and under the exemptionafforded by section 6(b) of the Actwould be, secured by a subordinatedlien on certain assets of Gulf Power.

Gulf Power proposes to borrow fromcertain banks or other lendinginstitutions. Such borrowings will beevidenced by notes to be dated as of thedate of such borrowings to mature in notmore than 10 years after the date ofissue, or by ‘‘grid’’ notes evidencing alloutstanding borrowings from eachlender to be dated as of the date of theinitial borrowing to mature not morethan 10 years after the date of issue.Gulf Power proposes that it may providethat any note evidencing suchborrowings may not be prepayable, orthat it may be prepaid with payment ofa premium that is not in excess of thestated interest rate on the borrowing tobe prepaid, which premium in the caseof a note having a maturity of more thanone year may thereafter decline to thedate of the note’s final maturity.

Borrowings will be at the lender’sprevailing rate offered to corporateborrowers of similar quality. Such rateswill not exceed the prime rate or (i) theLondon Interbank Offered Rate plus upto 2%, (ii) the lender’s certificate ofdeposit rate plus up to 13⁄4% or (iii) arate not to exceed the prime rate plus1% to be established by bids obtainedfrom the lenders prior to a proposedborrowing; provided, however, that withrespect to borrowings with a maturity inexcess of one year, the rate will notexceed the yield for a comparablematurity Treasury note plus onepercent.

Compensation for the credit facilitiesmay be provided by fees of up to 1⁄2 of1% per annum of the amount of the

facility. Compensating balances may beused in lieu of fees to compensatecertain of the lenders.

Gulf Power also may make short-termborrowings in connection with thefinancing of certain pollution controlfacilities through the issuance by publicentities of their revenue bondanticipation notes. Under an agreementwith the public entity, Gulf Powereffectively would borrow the proceedsof the sale of the revenue bondanticipation notes, having a maturity ofnot more than one year after the date ofissue, for which Gulf Power may issuea non-negotiable promissory note. Suchnote would provide for payments to bemade at times and in amounts tocorrespond to payments for theprincipal, premium, if any, and interest,which shall not exceed the prime rate,on such revenue bond anticipationnotes, whenever and in whatevermanner the same shall become due,whether at stated maturity, uponredemption or declaration of otherwise.Gulf Power requests that theCommission reserve jurisdiction overthe issuance by Gulf Power of its non-negotiable promissory notes pendingcompletion of the record.

Gulf Power also proposes to issue andsell commercial paper to or throughdealers from time to time prior toJanuary 1, 2004. Such commercial paperwill be in the form of promissory noteswith varying maturities not to exceednine months. Actual maturities will bedetermined by market conditions, theeffective interest costs and Gulf Power’santicipated cash flow, including theproceeds of other borrowings, at thetime of issuance. The commercial papernotes will be issued in denominations ofnot less than $50,000 and will not bytheir terms be prepayable prior tomaturity.

The commercial paper will be sold byGulf Power directly to or through adealer or dealers (‘‘Dealer’’). Thediscount rate (or the interest rate in thecase of interest-bearing notes), includingany commissions, will not be in excessof the discount rate per annum (orequivalent interest rate) prevailing at thedate of issuance for commercial paper ofcomparable quality of the particularmaturity sold by issuers thereof tocommercial paper dealers. Nocommission fee will be payable inconnection with the issuance and sale ofcommercial paper, except for acommission not to exceed 1⁄8 of 1% perannum payable to the Dealer in respectof commercial paper sold through theDealer as principal. The Dealer willreoffer such commercial paper at adiscount rate of up to 1⁄8 of 1% perannum less than the prevailing interest


rate to Gulf Power or at an equivalentcost if sold on an interest-bearing basis.

Pursuant to order dated May 9, 1994(HCAR No. 26049), Gulf Power isauthorized to effect certain short-termborrowings prior to January 1, 1997. AtSeptember 30, 1996, borrowings in theaggregate principal amount ofapproximately $64.1 million wereoutstanding pursuant to suchauthorization. Gulf proposes that theauthorization sought pursuant to thisdeclaration would supersede andreplace authorizations in file number70–8397 effective immediately upon thedate of the Commission’s orderauthorizing this declaration.

The proceeds from the proposedborrowings will be used by Gulf Powerfor working capital purposes, includingthe financing in part of its constructionprogram.

For the Commission, by the Division ofInvestment Management, pursuant todelegated authority.Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–29414 Filed 11–15–96; 8:45 am]BILLING CODE 8010–01–M

[Rel. No. IC–22325; File No. 812–10274]

Merrill Lynch Variable Series Funds,Inc. et al.

November 8, 1996.AGENCY: Securities and ExchangeCommission (the ‘‘SEC’’ or‘‘Commission’’).ACTION: Notice of application forexemption under the InvestmentCompany Act of 1940 (‘‘1940 Act’’).

APPLICANTS: Merrill Lynch VariableSeries Funds, Inc. (‘‘Company’’), MerrillLynch Asset Management L.P., MerrillLynch Life Insurance Company, ML LifeInsurance Company of New York,Merrill Lynch Variable Life SeparateAccount, Merrill Lynch Life VariableLife Separate Account II, Merrill LynchLife Variable Annuity Separate AccountA, Merrill Lynch Life Variable AnnuitySeparate Account B, Merrill Lynch LifeVariable Annuity Separate Account, MLof New York Variable Life SeparateAccount, ML of New York Variable LifeSeparate Account II, ML of New YorkVariable Annuity Separate Account A,ML of New York Variable AnnuitySeparate Account B, and ML of NewYork Variable Annuity SeparateAccount.RELEVANT 1940 ACT SECTIONS: Orderrequested under Section 17(b) of the1940 Act granting an exemption fromthe provisions of Section 17(a) of the1940 Act.

SUMMARY OF APPLICATION: Applicantsseek an order permitting the Company’sMerrill Lynch Flexible Strategy Fundseries to combine with and into itsMerrill Lynch Global Strategy FocusFund series and permitting theCompany’s Merrill Lynch InternationalBond Fund series to combine with andinto its Merrill Lynch World IncomeFocus Fund series.FILING DATE: The application was filedon July 25, 1996, and amended onNovember 6, 1996.HEARING OR NOTIFICATION OF HEARING: Anorder granting the application will beissued unless the Commission orders ahearing. Interested persons may requesta hearing by writing to the CommissionSecretary and serving applicants with acopy of the request, personally or bymail. Hearing requests should bereceived by the Commission by 5:30p.m. on December 3, 1996, and shouldbe accompanied by proof of service onapplicants, in the form of an affidavit or,for lawyers, a certificate of service.Hearing requests should state the natureof the writer’s interest, the reason for therequest, and the issues contested. Anyperson may request notification of ahearing by writing to the CommissionSecretary.ADDRESSES: Secretary, SEC, 450 FifthStreet, N.W., Washington D.C. 20549. IraP. Shapiro, Esq., Merrill Lynch VariableSeries Funds, Inc., 800 Scudders MillRoad, Plainsboro, New Jersey 08536.Edward Diffin, Esq., Merrill LynchInsurance Group, 800 Scudders MillRoad, Plainsboro, New Jersey 08536.Leonard B. Mackey, Jr., Esq., Rogers &Wells, 200 Park Avenue, New York, NY10166.FOR FURTHER INFORMATION CONTACT:Joyce Merrick Pickholz, Senior Counsel,or Patrice M. Pitts, Branch Chief, Officeof Insurance Products (Division ofInvestment Management), at (202) 942–0670.SUPPLEMENTARY INFORMATION: Followingis a summary of the application. Thecomplete application may be obtainedfor a fee from the Public ReferenceBranch of the Commission.

Applicants’ Representations1. The Company is a Maryland

corporation registered under the 1940Act as an open-end managementinvestment company.

2. The Company currently offers itsshares in seventeen separate series(‘‘Funds’’) to separate accounts(‘‘Separate Accounts’’) of certaininsurance companies (‘‘InsuranceCompanies’’), including Merrill LynchLife Insurance Company (‘‘MLLIC’’) andML Life Insurance Company of New

York (‘‘ML of New York’’), whollyowned subsidiaries of Merrill Lynch &Co., Inc. (‘‘Merrill Lynch’’), to fundbenefits under variable annuitycontracts and/or variable life insurancecontracts issued by such companies(‘‘Contracts’’).

3. The Separate Accounts includeMerrill Lynch Variable Life SeparateAccount; Merrill Lynch Life VariableLife Separate Account II; Merrill LynchLife Variable Annuity Separate AccountA; Merrill Lynch Life Variable AnnuitySeparate Account B; Merrill Lynch LifeVariable Annuity Separate Account; MLof New York Variable Life SeparateAccount; ML of New York Variable LifeSeparate Account II; ML of New YorkVariable Annuity Separate Account A;ML of New York Variable AnnuitySeparate Account B; and ML of NewYork Variable Annuity SeparateAccount.

4. Merrill Lynch Asset ManagementL.P. (‘‘Investment Adviser’’) is theinvestment adviser for each series of theCompany and an indirect wholly ownedsubsidiary of Merrill Lynch.

5. Applicants request an exemptionfrom the provisions of Section 17(a) ofthe 1940 Act to permit the Company’sMerrill Lynch Flexible Strategy Fundseries (‘‘Flexible Strategy Fund’’) to becombined with and into its MerrillLynch Global Strategy Focus Fundseries (the‘‘Global Strategy FocusFund’’) and the Company’s MerrillLynch International Bond Fund series(‘‘International Bond Fund’’) becombined with and into its MerrillLynch World Income Focus Fund series(‘‘World Income Focus Fund’’)(the‘‘Reorganizations’’). MLLIC and ML ofNew York hold of record in their ownname more than 5% of the outstandingshares of each of the Flexible StrategyFund and the International Bond Fund(together, the ‘‘Transferor Funds’’) andthe Global Strategy Focus Fund and theWorld Income Focus Fund (together, the‘‘Acquiring Funds’’).

6. Pursuant to the Reorganizations,the Acquiring Funds will acquire all ofthe assets and assume all of theliabilities of the correspondingTransferor Funds in exchange for sharesof the Acquiring Funds of the basis ofrelative new asset values at the effectivedate of the Reorganizations. Followingthe Reorganizations each TransferorFund will liquidate and distribute theshares of the Acquiring Funds pro ratato its shareholders of record.

7. Each Reorganization is intended tobe a ‘‘reorganization’’ within themeaning of Section 368 of the InternalRevenue Code of 1986, as amended (the‘‘Code’’). The Transferor Funds andcorresponding Acquiring Funds will


1 As a matter of operating policy, the FlexibleStrategy Fund may invest up to 25% of its net assetsin the securities of non-U.S. issuers.

receive an opinion of outside counselsubstantially to the effect, among otherthings, that (a) shareholders of eachTransferor Fund will recognize noincome, gain or loss upon receipt,pursuant to the Reorganizations, of thecorresponding Acquiring Fund’s shares;(b) the Transferor Funds will recognizeno income, gain or loss by reason oftheir Reorganization; and (c) theAcquiring Funds will recognize noincome, gain or loss by reason of theirReorganization.

Comparison of the Transferor Funds tothe Acquiring Funds Fund Assets

Fund Assets

8. At March 31, 1996, the FlexibleStrategy Fund had net assets ofapproximately $324,163,771, while theGlobal Strategy Focus Fund had netassets of approximately $554,297,564,and the International Bond Fund hadnet assets of approximately $17,166,252,while the World Income Focus Fundhad net assets of approximately$87,923,711. For the three monthsended March 31, 1996, the annualizedratio of total expenses to average netassets was 0.71% for the shares of eachof the Flexible Strategy Fund and theGlobal Strategy Focus Fund, and theannualized ratio of total expenses toaverage net assets was 0.78% (beforeexpense reimbursement) for the sharesof the International Bond Fund,compared to 0.68% for the shares of theWorld Income Focus Fund.

Fund Expenses

9. The Company’s InvestmentAdvisory Agreements require theInvestment Adviser to reimburse eachFund (up to the amount of the advisoryfee earned by the Investment Adviserwith respect to such Fund) if and to theextent that in any fiscal year theoperating expenses of the Fund exceedthe most restrictive expense limitationthen in effect under any state securitieslaw or the published regulationsthereunder. At present the mostrestrictive expense limitation requiresthe Investment Adviser to reimburseexpenses which exceed 2.5% of eachFund’s first $30 million of average dailynet assets, 2.0% of its average daily netassets in excess of $30 million but lessthan $100 million, and 1.5% of itsaverage daily net assets in excess of$100 million. Expenses for this purposeinclude the Investment Adviser’s fee butexclude interest, taxes, brokerage feesand commissions and extraordinarycharges, such as litigation costs.

10. The Investment Adviser andMerrill Lynch Life Agency, Inc.(‘‘MLLA’’)—the entity that sells the

Contracts—entered into tworeimbursement agreements (the‘‘Reimbursement Agreements’’) thatprovide that the expenses paid by eachFund (excluding interest, taxes,brokerage fees and commissions andextraordinary charges such as litigationcosts) will be limited to 1.25% of itsaverage net assets. Any expenses inexcess of this percentage will bereimbursed to the Fund by theInvestment Advisers which, in turn,will be reimbursed by MLLA. TheReimbursement Agreements may beamended or terminated by the partiesthereto upon prior written notice to theCompany.

11. The investment advisory fee foreach of the Flexible Strategy Fund andthe Global Strategy Focus Fund is0.65% per annum of average daily netassets. The investment advisory fee foreach of the International Bond Fund andthe World Income Focus Fund is 0.60%per annum of average daily net assets.During the Company’s financial yearended December 31, 1995, the advisoryfee expense incurred by the Companytotalled $21,376,742 of which$1,941,598 related to the FlexibleStrategy Fund and $3,348,535 related tothe Global Strategy Focus Fund, and$70,573 related to the InternationalBond Fund and $464,049 related to theWorld Income Focus Fund.

12. During the same period, the totaloperating expenses of the TransferorFunds and the Acquiring Funds(including the advisory fees paid by theInvestment Adviser), were as follows:$2,128,926 by Flexible Strategy Fund(representing .71% of its average netassets), $3,719,425 by Global StrategyFocus Fund (representing .72% of itsaverage net assets), and $112,261 byInternational Bond Fund (representing.95% of its average net assets prior tocomplete reimbursement by theInvestment Manager) and $527,752 byWorld Income Focus Fund (representing.68% of its average net assets). Thus farduring 1996, the Investment Adviser hascontinued to waive all of its fees andreimbursed all expenses of theInternational Bond Fund. TheInvestment Adviser has no currentintention of waiving its advisory feepayable by the World Income FocusFund or reimbursing the World IncomeFocus Fund for any expenses, other thanas required under the ReimbursementAgreements.

Fund Investment Objectives and Policies13. The Flexible Strategy Fund has an

investment objective of high totalinvestment return consistent withprudent risk and the Global StrategyFocus Fund has an investment objective

of high total investment return byinvesting primarily in a portfolio ofequity and fixed income securities,including convertible securities, ofUnited States and foreign issues. TheFlexible Strategy Fund seeks to meet itsinvestment objective by investingprimarily in securities of U.S. issuers 1

whereas the Global Strategy Focus Fundinvests primarily in the securities ofissuers located in the United States,Canada, Western Europe and the FarEast.

14. The investment policies of theFlexible Strategy Fund and the GlobalStrategy Focus Fund are alsosubstantially similar. Both Funds mayinvest in a broad range of securities,including equity securities of domesticand foreign large-capitalization andsmall capitalization companies,convertible and non-convertibleintermediate and long-term debtobligations issued or guaranteed bysovereign and corporate issuers, andmoney market obligations. In addition,both Funds may, at any given time,concentrate their investments in eitherequities or debt securities. However,because of its greater ability to invest innon-U.S. securities, the Global StrategyFocus Fund, unlike the Flexible StrategyFund, may engage in transactions infutures contracts, options on futurescontracts, forward foreign exchangecontracts, currency options and optionson portfolio securities and on stockindexes for hedging purposes only andnot for speculation. This ability toengage in hedging transactions alsoaccounts for the variation in what areotherwise substantially similarfundamental and non-fundamentalinvestment restrictions.

15. The investment objective of theInternational Bond Fund is to seek ahigh total investment return. Theinvestment objective of the WorldIncome Focus Fund is to seek to providestockholders with high current income.However, the Reorganization of theInternational Bond Fund and the WorldIncome Focus Fund is contingent uponthe approval by shareholders of theWorld Income Focus Fund of a proposalto change the investment objective ofthe World Income Focus Fund to aninvestment objective substantiallysimilar to that of the International BondFund.

16. In addition, the fundamental andnon-fundamental investmentrestrictions applicable to the two Funds


2 For example, both Funds may (i) utilizeborrowings for temporary emergency purposes or tomeet redemption requests; (ii) invest in illiquidsecurities, although the World Income Focus Fundis limited to investing no more than 10% of its totalassets in such securities, whereas the InternationalBond Fund is limited to 15%; (iii) the WorldIncome Focus Fund has a fundamental restrictionthat it will not purchase or retain the securities ofany issuer, if those individual officers and directorsof the Company, the Investment Adviser or anysubsidiary thereof each owning beneficially morethan 1⁄2 of 1% of the securities of such issuer, ownin the aggregate more than 5% of the securities ofsuch issuer, whereas the International Bond Fundhas such investment restriction as a non-fundamental investment restriction and refers onlyto Merrill Lynch Funds Distributors, Inc., thedistributor of the shares of the Company, in placeof ‘‘any subsidiary’’; and (iv) the World IncomeFocus Fund is not prohibited from issuing seniorsecurities whereas the International Bond Fund isso prohibited.

are substantially similar.2 To the extentthere was any variation in thoserestrictions, such variations would beeliminated by the adoption of proposeduniform investment restrictionssubmitted to stockholders of theCompany’s Funds (other than theMerrill Lynch Domestic Money MarketFund and the Merrill Lynch ReserveAssets Fund) at the same time approvalof the combination of the two Fundswas sought.

Approval by the Board andContractowners

17. The Reorganizations wereunanimously approved by the Board ofDirectors of the Company, including thedisinterested directors thereof, on July10, 1995, and were approved by theshareholders of the Transferor Funds onOctober 11, 1996.

Applicants’ Legal Analysis1. Section 17(a) of the 1940 Act

provides, in pertinent part, that it isunlawful for any affiliated person of aregistered investment company, or anyaffiliated person of such person ‘‘(1)knowingly to sell any security or otherproperty to such registered company* * *; [or] (2) knowingly to purchasefrom such registered company * * *any security or other property. * * *’’

2. Section 2(a)(3) of the 1940 Actdefines the term ‘‘affiliated person’’ ofanother person to include, in pertinentpart, ‘‘(A) any person directly orindirectly owning, controlling, orholding with power to vote, 5 percentum or more of the outstandingvoting securities of such other person;(B) any person 5 per centum or more ofwhose outstanding voting securities aredirectly or indirectly owned, controlled,or held with power to vote, by suchother person; (C) any person directly orindirectly controlling, controlled by, orunder common control with, such other

person; * * * [and] (E) if such otherperson is an investment company, anyinvestment adviser thereof. * * *’’

3. MLLIC and ML of New York, whichare under common ownership andcontrol with the Investment Adviser,hold of record more than 5% of theoutstanding voting securities of theAcquiring Funds. Because of this 5%ownership, each Acquiring Fund mightbe deemed an ‘‘affiliated person’’ ofMLLIC and ML of New York underSection 2(a)(3)(B). Also, MLLIC and MLof New York are ‘‘affiliated persons’’ ofthe Investment Adviser under Section2(a)(3)(C) by virtue of their commonownership and control by MerrillLynch. The Investment Adviser, in turn,is an ‘‘affiliated person’’ of theTransferor Funds under Section2(a)(3)(E) by virtue of its investmentadvisory relationship with those Funds.Therefore, each Acquiring Fund mightbe deemed ‘‘an affiliated person of anaffiliated person’’ of the correspondingTransferor Fund.

4. Rule 17a–8 generally exempts fromthe prohibitions of Section 17(a)mergers, consolidations, or purchases orsales of substantially all of the assets ofregistered investment companies thatare affiliated persons, or affiliatedpersons of an affiliated person, solely byreason of having a common investmentadviser, common directors, and/orcommon officers, provided that certainconditions are satisfied. For the reasonsnoted above, Applicants state that theproposed Reorganization might not bedeemed exempt from the prohibitions ofSection 17(a) by reason of Rule 17a–8.

5. Section 17(b) of the 1940 Actprovides that, notwithstanding Section17(a), any person may file with theCommission an application for an orderexempting a proposed transaction fromone or more provisions of thatsubsection and that the Commissionshall grant such application and issuesuch order of exemption if evidenceestablishes that ‘‘(1) the terms of theproposed transaction, including theconsideration to be paid or received, arereasonable and fair and do not involveoverreaching on the part of any personconcerned; (2) the proposed transactionis consistent with the policy of eachregistered investment companyconcerned, as recited in its registrationstatement and reports filed under [the1940 Act]; and (3) the proposedtransaction is consistent with thegeneral purposes of [the 1940 Act].’’ TheApplicants seek an order under Section17(b) to permit the Reorganizations toproceed.

6. In this regard, Applicants assertthat Transferor Fund shareholders willreceive corresponding Acquiring Fund

shares with a total net asset value equalto that of the Transferor Fund shareswhich they previously held. Applicantsfurther assert that the Board found, ascontemplated by Rule 17a–8(a) underthe 1940 Act, that participation in theReorganizations is in the best interestsof the Transferor Funds andcorresponding Acquiring Funds andthat the interests of existingshareholders of such Funds will not bediluted as a result of theReorganizations. In reaching thisconclusion, the Board noted that theReorganizations should not result in anydilution of the interests of the Contractholders for whom the SeparateAccounts hold shares of the TransferorFunds and the corresponding AcquiringFunds and should provide thoseContract holders with substantially thesame benefits as are expected to berealized by the Insurance Companiesthat own the shares of such Fundsdirectly. The factors considered by theBoard included: (1) The compatibility ofthe objectives, policies and restrictionsof the Transferor Funds and thecorresponding Acquiring Funds; (2)future cost savings or other advantageswhich might be achieved by combiningthe Transferor Funds and thecorresponding Acquiring Funds; (3) thetax-free nature of the proposedReorganizations; (4) the terms andconditions of the ReorganizationAgreements; (5) the agreement of theInsurance Companies, primarily MLLICand ML of New York, to bear asubstantial portion of the costsassociated with the proposedReorganizations; (6) that the rate of theadvisory fees would remain constant forTransferor Funds’ shareholders; (7) thatin no event will the holders ofTransferor Funds’ shares become subjectto a less advantageous expensereimbursement ‘‘cap’’ as a result of theproposed combination of Funds; and (8)the potential benefits to the InvestmentAdviser of the transactionscontemplated by the ReorganizationAgreements.

7. Applicants also note that,consistent with the requirements of Rule18f–2 under the 1940 Act, the proposedReorganizations were approved by amajority of the outstanding votingsecurities of each Transferor Fund,voting as a separate series, as well as bythe vote required under applicable statelaw. Moreover, the Reorganizationswere the subject of a registrationstatement on Form N–14.

ConclusionFor the reasons and upon the facts set

forth above, the terms of the proposedReorganization transactions, including


1 15 U.S.C. 78s(b)(1) (1988).2 Securities Exchange Act Release No. 37809

(October 10, 1996), 61 FR 54476.

3 For a complete description of DRS, refer toSecurities Exchange Act Release No. 35038(December 1, 1994), 59 FR 63652 (concept releaseon a transfer agent operated book-entry registrationsystem) and DTC Important Notice B# 1811–96(October 7, 1996) and Important Notice B# 1841–96 (October 7, 1996), which are attached as ExhibitsA and B to Securities Exchange Act Release No.37800 (October 9, 1996), 61 FR 54473.

4 15 U.S.C. 78f (1988). 5 17 CFR 200.30–3(a)(12) (1996).

the consideration to be paid andreceived, are: (a) fair and reasonable anddo not involve overreaching on the partof any person concerned; (b) consistentwith the policy of each registeredinvestment company concerned, asrecited in its registration statements andreports filed under the 1940 Act; and,(c) consistent with the general purposesof the 1940 Act. Accordingly,Applicants submit that the terms of theReorganizations meet the standards forexemption from Section 17(a) of the1940 Act as set forth in Section 17(b)thereof.

For the Commission, by the Division ofInvestment Management, under delegatedauthority.Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–29415 Filed 11–15–96; 8:45 am]BILLING CODE 8010–01–M

[Release No. 34–37937; File No. SR–NYSE–96–29]

Self-Regulatory Organizations; NewYork Stock Exchange, Inc.; OrderGranting Accelerated Approval ofProposed Rule Change Relating toStock Distributions

November 8, 1996.On October 11, 1996, the New York

Stock Exchange, Inc. (‘‘NYSE’’) filedwith the Securities and ExchangeCommission (‘‘Commission’’) theproposed rule change (File No. SR–NYSE–96–29) pursuant to Section19(b)(1) of the Securities Exchange Actof 1934 (‘‘Act‘‘).1 Notice of the proposalwas published in the Federal Registeron October 18, 1996.2 No commentletters were received. For the reasonsdiscussed below, the Commission isgranting approval of the proposed rulechange.

I. DescriptionThe proposed rule change will allow

listed companies engaged indistributions to offer shareholderswhose ownership of stock is directlyregistered with them or their transferagents the choice of receiving eithercertificates or account statements. TheNYSE is rescinding its policy whichrequired listed companies to supplystock certificates to recordholders for alldistributions, such as stock splits,mergers, and spin-offs, other than thoserelating to dividend reinvestment plans(‘‘DRIPs’’) and dividend reinvestmentstock purchase plans (‘‘DRSPPs’’). TheNYSE is rescinding the current policy

due to the decreasing importance ofphysical certificates, the technologicalenhancements in the automation ofstock ownership records, and a recentrule filing by The Depository TrustCompany (‘‘DTC’’) to implement anelectronic ‘‘direct registration system’’(‘‘DRS’’).3

DRS will provide a linkage betweentransfer agents, broker-dealers, and thedepositories and will allow investors tomove stock position from transfer agentto broker-dealers in connection withtheir sales of stock. As a condition ofallowing issuers to provide investorswith the option of obtaining eithercertificates or account statements fordistributions in addition to thoseassociated with DRIPs and DRSPPs,NYSE is requiring issuers to includetheir stock in a DRS. Such a DRS mustbe operated by a registered clearingagency and must be available forexchange-traded stock.

II. DiscussionSection 6(b)(5) 4 of the Act requires

that an exchange have rules that aredesigned to foster cooperation andcoordination with persons engaged inregulating, clearing, settling, processinginformation with respect to, andfacilitating transactions in securities.The Commission believes that NYSE’sproposed rule change rescinding itspolicy will foster cooperation andcoordination with persons engaged inregulating, clearing, settling, processinginformation with respect to, andfacilitating transactions in securities. Byrescinding its policy, NYSE listedcompanies will have the opportunity toparticipate in DRS, which a jointindustry committee comprised ofrepresentatives from the transfer agent,broker-dealer, and depositorycommunities. DRS will providesignificant efficiencies in the processingof securities and should contribute tothe cooperation and coordinationbetween the various groups involved inthe clearance and settlement process.

NYSE has requested that theCommission find good cause forapproving the proposed rule changeprior to the thirtieth day after the dateof publication of notice of the filing. TheCommission finds good cause forapproving the proposed rule changeprior to the thirtieth day after the date

of publication because acceleratedapproval will allow NYSE listed issuersto participate in the DRS pilot programwhich begins on November 11, 1996.

III. Conclusion

On the basis of the foregoing, theCommission finds that the proposedrule change is consistent with therequirements of the Act and inparticular Section 6 of the Act and therules and regulations thereunder.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act, that theproposed rule change (File No. SR–NYSE–96–29) be and hereby isapproved.

For the Commission by the Division ofMarket Regulation, pursuant to delegatedauthority.5

Margaret H. McFarland,Deputy Secretary.[FR Doc. 96–29441 Filed 11–15–96; 8:45 am]BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[PN 2468]

International Joint Commission;Boundary Waters Treaty of 1909; anInvitation To Comment on the 1996Progress Report of the Air QualityCommittee Under the Canada-UnitedStates Air Quality Agreement

The International Joint Commissioninvites public comment on progress bythe United States and Canada inreducing transboundary air pollutionunder the 1991 Agreement on AirQuality. The Commission will provide asynthesis of the comments to the twogovernments and the public as directedby the Agreement.

The Governments of the United Statesand Canada signed an Agreement on AirQuality on March 13, 1991. The purposeof the Agreement was to establish apractical and effective instrument toaddress shared concerns ontransboundary air pollution. The 1996Progress Report reviews acid raincontrol programs, monitoring, emissioninventories, visibility protection,scientific and technical cooperation,and includes the first five-year review ofthe Agreement.

Under the terms of the Agreement, theGovernments established a bilateral AirQuality Committee. This Committee isresponsible for reviewing progress madein the implementation of theAgreement, preparing and submittingperiodic progress reports to theGovernments, referring each progress


report to the International JointCommission, and releasing those reportsto the public. The 1996 Progress Reportof the Committee is now available andmay be obtained from:Acid Rain Division, U.S. Environmental

Protection Agency, Mail Code: 6204J,401 M Street, SW., Washington, DC20460, Acid Rain Hotline: (202) 233–9620

Environment Canada, Enquiry Centre,351 St. Joseph Blvd., Hull, Quebec,K1A 0H3, (819) 997–2800.The Executive Summary is available

on Environment Canada’s World WideWeb site: http//www.ec.gc.ca/pdb/doe.html

Under the Agreement, theGovernments assigned the InternationalJoint Commission the responsibility ofinviting comments on each progressreport of the Air Quality Committee.The International Joint Commissioninvites comment on any aspect of the1996 Progress Report. Please sendcomments in writing by January 15,1997 to either address below, or contactus if you have any questions about thecomment process.International Joint Commission, United

States Section, 1250 23rd Street, NW.,Suite 100, Washington, DC 20440;Telephone: (202) 736–9000; Fax: (202)736–9015; Email: [email protected]

International Joint Commission, CanadaSection, 100 Metcalfe Street, 18thFloor, Ottawa, ON K1P 5M1;Telephone: (613) 995–2984; Fax: (613)993–5583;Email:[email protected]: November 6, 1996.

James Chandler,Acting Secretary, United States Section.[FR Doc. 96–29406 Filed 11–15–96; 8:45 am]BILLING CODE 4710–14–M

[Public Notice No. 2473]

Advisory Committee on InternationalCommunications and InformationPolicy; Public Meeting

The Department of State is holdingthe sixth meeting of its AdvisoryCommittee on InternationalCommunications and InformationPolicy. The Committee was renewed onAugust 22, 1996, in order to continue toprovide a formal channel for regularconsultation and coordination on majoreconomic, social and legal issues andproblems in internationalcommunications and informationpolicy, especially as these issues andproblems involve users of informationand communication services, providers

of such services, technology researchand development, foreign industrial andregulatory policy, the activities ofinternational organizations with regardto communications and information,and developing country interests.

The 24-person committee wasappointed by Ambassador Vonya B.McCann, United States Coordinator forInternational Communications andInformation Policy, U.S. Department ofState, and serves under theChairmanship of Ed Black, President,Computer & Communications IndustryAssociation.

The purpose of this meeting will be tohear reports from the working groups onvarious issues that chart the futuredirection and work plan of thecommittee. The members will look atthe substantive issues on which thecommittee should focus, as well asspecific countries and regions of interestto the committee.

The committee will follow theprocedures prescribed by the FederalAdvisory Committee Act (FACA).Meetings will be open to the publicunless a determination is made inaccordance with the FACA Section10(d), 5 U.S.C. 552b(c)(1) and (4) that ameeting or a portion of the meetingshould be closed to the public.

This meeting will be held onThursday, December 12, 1996, from 9:30a.m.–12:30 p.m. in Room 1105 of theMain Building of the U.S. Department ofState, located at 2201 ‘‘C’’ Street, N.W.,Washington, D.C. 20520. While themeeting is open to the public,admittance to the State DepartmentBuilding is only by means of a pre-arranged clearance list. In order to beplaced on the pre-clearance list, pleaseprovide your name, title, company,social security number, date of birth,and citizenship to Shirlett Brewer at(202) 647–5233 or by fax at (202) 647–5957. All attendees must use the ‘‘C’’Street entrance. One of the followingvalid ID’s will be required foradmittance: any U.S. driver’s licensewith photo, a passport, or a U.S.Government agency ID.

For further information, contactTimothy C. Finton, Executive Secretaryof the committee, at (202) 647–5385.

Dated: November 12, 1996.Timothy C. Finton,Executive Secretary, Advisory Committee forInternational Communications andInformation Policy.[FR Doc. 96–29413 Filed 11–15–96; 8:45 am]BILLING CODE 4710–45–M


U.S. State Department AdvisoryCommittee on International EconomicPolicy of Working Group on EconomicSanctions; Closed Meeting

The Department of State announces ameeting of the U.S. State DepartmentAdvisory Committee on InternationalEconomic Policy Working Group onEconomic Sanctions on Monday,December 2, 1996 at the U.S.Department of State, Washington, D.C.Pursuant to Section 10(d) of the FederalAdvisory Committee Act (FACA) and 5U.S.C. 552b(c)(1), 5 U.S.C. 552b(c)(4),and 5 U.S.C. 552b(c)(9)(B), it has beendetermined the meeting will be closedto the public. Matters relative toclassified national security informationas well as privileged commercialinformation will be discussed.

For more information contact JoanneBalzano, Working Group on EconomicSanctions, Department of State,Washington, DC 20522–1003, phone:202–647–1498.

Dated: November 8, 1996.Alan P. Larson,Assistant Secretary for Economic andBusiness Affairs.[FR Doc. 96–29396 Filed 11–15–96; 8:45 am]BILLING CODE 4710–07–M


Notice of Briefing

The Department of State announcesthe third 1996 briefing on U.S. foreignpolicy economic sanctions programs tobe held on Tuesday, December 17, 1996,from 2:00 p.m. until 3:30 p.m., in theState Department Loy HendersonAuditorium, 2201 C Street NW,Washington, D.C.

This briefing is a follow-on session tothe March and July foreign policyeconomic sanctions briefings hosted byUnder Secretary for Economic, Businessand Agricultural Affairs Joan Spero andDeputy Assistant Secretary for EnergySanctions and Commodities BillRamsey. As in the earlier briefings,Ambassador Ramsay will present anoverview of the sanctions regimesoverseen by the State Department’sBureau of Economic and BusinessAffairs and State Department deskofficers will be on hand to discusscountry-specific sanctions issuesfollowing Ambassador Ramsay’sbriefing.

Please Note: Persons intending to attendthe December 17 briefing must announce thisnot later than 48 hours before the briefing,and preferably further in advance, to theDepartment of State, by sending a fax to 202–


647–3953 (Office of the Coordinator forBusiness Affairs). The announcement mustinclude name, affiliation, Social Security orpassport number and date of birth. The aboveincludes government and non-governmentattendees. One of the following valid photoID’s will be required for admittance: U.S.driver’s license with picture, passport, U.S.government ID (company ID’s are no longeraccepted by Diplomatic Security). Enter fromthe C Street Main Lobby.

Dated: November 7, 1996.David A. Ruth,Senior Coordinator for Business Affairs.[FR Doc. 96–29407 Filed 11–15–96; 8:45 am]BILLING CODE 4710–07–M

[Public Notice 2474]

Bureau of Consular Affairs;Registration for the DiversityImmigrant (DV–98) Visa Program

ACTION: Notice of registration period andrequirements for the fourth year of theDiversity Immigrant Visa Program.

This public notice providesinformation on the procedures forobtaining an opportunity to apply forone of the 55,000 immigrant visas to bemade available in the DV categoryduring Fiscal Year 1998. This notice isissued pursuant to 22 CFR 42.33, whichimplements sections 201(a)(3), 201(e),203(c) and 204(a)(1)(G) of theImmigration and Nationality Act (8U.S.C. 1151(a)(3), 1153(c), and1154(a)(1)(G). Readers should note thatthe Department published amendmentsto its regulations at 22 CFR 42.33 in theFederal Register on January 22, 1996.[61 FR 1523.]

Information on the Entry Proceduresfor the 55,000 Immigrant Visas To BeMade Available in the DV CategoryDuring Fiscal Year 1998

Sections 201(a)(3), 201(e), 203(c) and204(a)(1)(G) of the Immigration andNationality Act, taken togetherestablished, effective for Fiscal Year1995 and thereafter, an annualnumerical limitation of 55,000 diversityimmigrant visas to be made available topersons from countries that have hadlow rates of immigration to the UnitedStates. The DV–98 registration mail-inperiod will last 30 days and will be heldfrom noon on February 3, 1997 throughnoon on March 5, 1997. This will givethose eligible, both in the United Statesand overseas, ample time to mail in anentry.

How Are the Visas Being Apportioned?The visas will be apportioned among

six geographic regions. A greaternumber of visas will go to those regionsthat have had lower immigration rates

as determined pursuant to INA 203(c).There is, however, a limit of sevenpercent (or 3,850) on the use of visas bynatives of any one foreign state. Theregions, along with their Fiscal Year1998 allotments are:

Africa: (21,179) Includes all countrieson the continent of Africa and adjacentislands.

Asia: (7,280) Includes all countriesexcept China, both mainland andTaiwan born, India, Philippines, SouthKorea, and Vietnam; (Hong Kong iseligible).

Europe: (23,213) Includes allcountries except Great Britain (UnitedKingdom) and its dependent territoriesand Poland; (Northern Ireland iseligible).

North America: (8) The Bahamas isthe only eligible country this year;(Canada is not eligible for this year’slottery.)

Oceania: (844) Includes Australia,New Zealand, Papua New Guinea, andall countries and islands in the SouthPacific.

South America, Central America, andthe Caribbean: (2,476) Includes allcountries except Colombia, DominicanRepublic, El Salvador, Jamaica, andMexico.

Who Is Eligible?‘‘High admission’’ countries are not

eligible for the program. ‘‘Highadmission’’ countries are defined asthose from which the United States hasreceived more than 50,000 immigrantsduring the last five fiscal years forwhich data is available in the immediaterelative, or family or employmentpreference categories. See INA203(c)(1)(A). Each year the Immigrationand Naturalization Services adds thefamily and employment immigrantadmission figures for the previous fivefiscal years to identify the countries thatmust be excluded from the annualdiversity lottery. For 1998, ‘‘highadmission’’ and therefore ineligiblecountries are: China (mainland andTaiwan), India, The Philippines,Vietnam, South Korea, Poland, UnitedKingdom and dependent territories(except see below), Canada, Mexico,Jamaica, El Salvador, Colombia, and TheDominican Republic.

Natives of Hong Kong and NorthernIreland are eligible to apply for thisyear’s lottery.

What Are the Requirements?In addition to being born in a

qualifying country, applicants musteither (1) have a high school educationor its equivalent or (2) within the pastfive years, have two years of workexperience in an occupation that

requires at least two years of training orexperience. See INA 203(c)(2).

There is no fee or special petitionform that must be completed to enter.The entry must be typed or clearlyprinted in the English alphabet on asheet of plain paper and must includethe following:

1. Applicant’s Full NameLast Name (Surname/Family Name),

First Name and Middle Name(Underline Last Name/Surname/FamilyName)Example: Public, George Quincy

2. Applicant’s Date and Place of BirthDate of birth: Day, Month, YearExample: 15 November 1961Place of birth: City/Town, District/

County/Province, CountryExample: Munich, Bavaria, Germany

Please use the current name of thecountry (e.g. Kazakstan, Russia, Croatia,Slovakia, Eritrea, etc.), if different fromthe name in use at the time of birth.

3. Name, Date and Place of Birth ofApplicant’s Spouse and Minor Children,if Any

The spouse and child(ren) of anapplicant who is registered for DV–98status are automatically entitled to thesame status. To obtain a visa on thebasis of this derivative status, a childmust be under 21 years of age andunmarried.

Note: DO NOT list parents as they are notentitled to derivative status.

4. Applicant’s Mailing Address, andPhone Number, if Possible

The mailing address must be clearand complete, since it will be to thataddress that the notification letter forthe persons who are registered will besent. A telephone number is optional.

5. Applicant’s Native Country ifDifferent From Country of Birth

6. A Recent 11⁄2 Inch by 11⁄2 InchPhotograph of the Principal Applicant

The applicant’s name must be printedacross the back of the photograph. (Thephotograph should be taped to theapplication with clear tape, not attachedby staples or paper clips which can jamthe mail processing equipment.)

7. Principal Applicant’s Signature IsRequired on the Entry

The applicant must sign the entryusing his or her normal signature,regardless of whether the entry isprepared and submitted by theapplicant or someone else.(Only the principal applicant, not thespouse and children, needs to submit asignature and photograph.)


This information must be sent byregular mail or air mail to one of sixpostal addresses in Portsmouth, NewHampshire. Applicants must use thecorrect postal zip code designated fortheir native region (see addressesbelow). Entries must be mailed in aregular letter or business-size envelopewith the applicant’s native country, fullname, and complete mailing addresstyped or clearly printed in the Englishalphabet in the upper left-hand cornerof the envelope. Postcards are notacceptable.

Only one entry for each applicant maybe submitted during the registrationperiod. Duplicate or multiple entrieswill disqualify individuals fromregistration for this program. See INA204(a)(1)(6)(i). Entries received before orafter the specified registration datesregardless of when they are postmarkedand entries sent to an address other thanone of those indicated below are void.All mail received during the registrationperiod will be individually numberedand entries will be selected at randomby computer regardless of time ofreceipt during the mail-in period.Selected entries will be registered andthen notified as specified below.

Where Should Entries Be Sent?Note Carefully the Importance of

Using the Correct Postal ZIP Code forEach Region.Asia: DV–98 Program, National Visa

Center, Portsmouth, NH 00210, USASouth America, Central America, and

the Caribbean: DV–98 Program,National Visa Center, Portsmouth, NH00211, USA

Europe: DV–98 Program, National VisaCenter, Portsmouth, NH 00212, USA

Africa: DV–98 Program, National VisaCenter, Portsmouth, NH 00213, USA

Oceania: DV–98 Program, National VisaCenter, Portsmouth, NH 00214, USA

North America: DV–97 Program,National Visa Center, Portsmouth, NH00215, USA

Is It Necessary To Use An OutsideAttorney or Consultant?

The decision to hire an attorney orconsultant is entirely up to theapplicant. Procedures for entering theDiversity Lottery can be completedwithout assistance following thesesimple instructions. However, ifapplicants prefer to use outsideassistance, that is their choice. There aremany legitimate attorneys andimmigration consultants assistingapplicants for reasonable fees, or insome cases for free. Unfortunately, thereare other persons who are chargingexorbitant rates and making unrealisticclaims. The selection of winners is

made at random and no outside servicecan improve an applicant’s chances ofbeing chosen or guarantee that an entrywill win. Any service that claims it canimprove an applicant’s odds ispromising something it cannot deliver.

Persons who think they have beencheated by a U.S. company orconsultant in connection with theDiversity Visa Lottery may wish tocontact their local consumer affairsoffice or the National Fraud InformationCenter at 1–800–876–7060 or 1–202–835–0159. The U.S. Department of Statehas no authority to investigatecomplaints against businesses in theUnited States.

How Will Winners Be Notified?

Only successful entrants will benotified. They will be notified by mailat the address listed on their entryduring the summer of 1997. Winnerswill also be sent instructions on how toapply for an immigrant visa, includinginformation on a new requirement for aspecial DV case processing fee.Successful entrants must complete theimmigrant visa application process andmeet all eligibility requirements underU.S. law to be issued a visa.

Being selected as a winner in the DVLottery does not automaticallyguarantee being issued a visa even if theapplicant is qualified, because thenumber of entries selected andregistered is greater than the number ofimmigrant visas available. Thoseselected will, therefore, need tocomplete and file their immigrant visaapplications quickly. Once all 55,000visas have been issued, the DV Programfor Fiscal Year 1998 will end.

Where To Obtain Instructions onEntering the DV Lottery?

The above Information on entering theDV–98 program is also available 24hours a day to persons within theUnited States by calling the Departmentof State’s Visa Lottery InformationCenter at 1–900–884–8840 at a flat rateof $5.10 per call. Callers will first hearsome basic information about the DVLottery and will be requested to providetheir name and address so that printedinstructions can be mailed to them.Applicants overseas may continue tocontact the nearest U.S. embassy orconsulate for instructions on the DVLottery.

Dated: November 12, 1996.Mary A. Ryan,Assistant Secretary for Consular Affairs.[FR Doc. 96–29403 Filed 11–15–96; 8:45 am]BILLING CODE 4710–06–P

TENNESSEE VALLEY AUTHORITY

Sunshine Act Meeting

AGENCY HOLDING THE MEETING: TennesseeValley Authority (Meeting No. 1490).TIME AND DATE: 10 a.m. (CST), November20, 1996.PLACE: TVA Environmental ResearchCenter Auditorium, Muscle Shoals,Alabama.STATUS: Open.

Agenda

Approval of minutes of meeting heldon October 16, 1996.

Discussion Item

Environmental Research Center

New Business

A—Budget and Financing

A1. Adoption of Tennessee ValleyAuthority Financial Statements forFiscal Year 1996.

A2. Retention of Net Power Proceedsand Nonpower Proceeds and Paymentsto the U.S. Treasury in March 1997,pursuant to Section 26 of the TVA Act.

C—Energy

C1. Extension of Contract No. TV–94218V through September 30, 1999,with Team Associates, Inc. Thesupplement will add $2.4 million to thecontract.

C2. Approval for Fossil and Hydro toenter into a 3-year contract withMcDaniel Fire Systems for systemwidefire-protection upgrades at TVA’s fossil,hydroelectric, and combustion turbinefacilities. The contract is not to exceed$30 million.

C3. Two-year contract with Pipingand Equipment Company (withprovisions for up to three extensionperiods of one year each) to providepipe and fittings for TVA fossil, hydro,and nuclear plants. The contract is notto exceed $25 million.

E—Real Property Transactions

E1. Sale of noncommercial,nonexclusive permanent easementaffecting 0.09 acre of land on TellicoLake in Loudon County, Tennessee, toVernon J. Lowe for construction andmaintenance of recreational water-usefacilities (Tract No. XTELR–185RE).

E2. Sale of a permanent easementaffecting 0.3 acre of land on NickajackLake in Marion County, Tennessee, toDoyle Morrison for a road and utilitiesright-of-way (Tract No. XNJR–22H).

F—Unclassified

F1. Filing of condemnation case.


Information Items

1. Approval for the ChiefAdministrative Officer to enter intoindefinite quantity term contracts withBTG, Inc., CDI Information Services,and National Systems and ResearchCompany for information technologyand professional and technical supportservices.

2. Approval for the ChiefAdministrative Officer to enter intoindefinite quantity term contracts withBTG, Inc., Tennessee ComputerSpecialties, Inc., and ComputerResource Systems to provide computerdesktop systems.

3. Approval of an agreement withVenture Alliance Capital Fund, LLC, topurchase membership shares in VentureAlliance Capital Fund, LLC, a board-managed, limited liability companywhich invests in companies in theTennessee Valley region. The purpose ofthis agreement is to promote economicdevelopment, increase power demand,and create jobs in the Tennessee Valleyregion.

4. Approval of an agreement to makea loan to and purchase membershipshares in Workplace Wellness, LLC(WW), to help promote economicdevelopment in the Tennessee Valleyregion. WW is a member-managed,limited liability company developed byAlliance, LLC. WW operates a mobilelab to perform onsite drug testing ofemployees and applicants and providesdrug testing services for TVA Nuclear.

5. Approval of the 1997 power systemoperating and capital budgets.

6. Abandonment of easement rightsaffecting approximately 2.1 acres of landon the Ocoee No. 1 Chickamauga DamTransmission Line (Tract No. OR–134A).

7. Approval for the ChiefAdministrative Officer to enter into anindefinite quantity term contract withColeman Research Corporation for anelectronic document managementsystem.

8. Filing of a condemnation case.For more information: Please call

TVA Public Relations at (423) 632–6000,Knoxville, Tennessee. Information isalso available at TVA’s WashingtonOffice (202) 898–2999.

Dated: November 13, 1996.Edward S. Christenbury,General Counsel and Secretary.[FR Doc. 96–29524 Filed 11–14–96; 9:43 am]BILLING CODE 8120–08–M


Office of the Secretary

Reports, Forms and RecordkeepingRequirements; Agency InformationCollection Activity Under OMB Review

AGENCY: Department of Transportation(DOT).ACTION: Notice.

SUMMARY: In compliance with thePaperwork Reduction Act (44 U.S.C.3501 et seq.), this notice announces thatthe Information Collection Requests(ICRs) abstracted below have beenforwarded to the Office of Managementand Budget (OMB) for approval of a newcollection, reinstatement, with change,of a previously approved collection forwhich approval has expired. The ICRsdescribes the nature of the informationcollection and its expected burden. TheFederal Register Notice solicitingcomments on collection of information2127-new was published on July 1, 1996[FR 61, page 33891] and the FederalRegister Notice soliciting comments oncollection of information 2127–0021was published on July 12, 1996 [FR 61,page 36778].DATES: Comments must be submitted onor before December 18, 1996.FOR FURTHER INFORMATION CONTACT:Edward Kosek, (202) 366–2590, andrefer to the OMB Control Number.SUPPLEMENTARY INFORMATION: NationalHighway Traffic Safety Administration(NHTSA)

Title: Highway Crash Data Collectionfor Evaluation of Conspicuity Markingon Heavy Truck Trailers.

Type of Request: New Collection.OMB Control Number: 2127-new.Form Number: N/A.Affected Public: State and local

governments.Abstract: Under Executive Order

12866, ‘‘Regulatory Planning andReview’’ (58 FR 51735), NHTSA isrequired to conduct periodicevaluations to assess the effectiveness ofthe vehicle safety standards it haspromulgated. These studies estimate theactual safety benefits achieved by thestandards and provide a basis forassessing whether the standards arefunctioning as intended. Typically, theevaluation studies consist of theanalyses of highway crash data whichcompare the experience of vehiclesequipped with a given standard with theexperience of vehicles not equippedwith the standard. In addition to alltrailers manufactured since December1993, which are required to haveconspicuity marking, some companieshave also equipped their older trailers

with the material. Trailers equippedprior to December 1993 sometimes usedcolors and patterns which differ fromthose specified in the standard. A datacollection effort is planned to providecrash information for the purpose ofevaluating the safety effects of theconspicuity requirement under FMVSSNo.108. NHTSA will analyze the data toestimate the safety benefits, in terms ofcrashes, injuries, and fatalities avoidedthat can be attributed to therequirement.

Annual Estimated Burden: The totalestimated annual burden is 2,666 hours.

Title: National Accident SamplingSystem (NASS).

Type of Request: Reinstatement, withchange, of a previously approvedcollection for which approval hasexpired.

OMB Control Number: 2127–0021.Form Numbers: HS–433A, HS–433B,

HS–435H, HS–435I, and HS–435F.Affected Public: Participation is

voluntary for all respondents. NHTSAcontractor employers begin by going tothe police to get copies of accidentreports. They select certain accidents,usually the more serious, to investigate.They interview occupants andwitnesses, acquire medical records, andinspect the crash scene and vehicles.Data is coded on standard forms andentered into a computerized database.

Abstract: NASS investigates highseverity crashes. Once a crash has beenselected for investigation, severalactivities are initiated by the NASSCrashworthiness Data System (CDS)team. Researchers locate, visit, measure,and photograph the crash scene; locate,inspect, and photograph all involvedvehicles; conduct a telephone orpersonal interview with each involvedperson or surrogate; and obtain andrecord injury information from hospitalsor emergency rooms for all injuredvictims. During each activity theresearchers record information on theNASS vehicle, and occupant/ pedestrianforms as appropriate.

Need for the Information andProposed Use: NASS CDS data are usedto describe and analyze circumstances,mechanisms, and consequences of highseverity motor vehicle crashes in theUnited States. These descriptions andanalyses in turn will help to describethe magnitude of vehicle damage andinjury severity as related to traffic safetyproblems. It will give motor vehicleresearchers an opportunity to specifyareas in which improvements may bepossible, design countermeasureprograms, and evaluate the effects ofexisting and proposed safety measures.Users include virtually every program


area in NHTSA, other federal agenciessuch as the Federal HighwayAdministration, state and localgovernments, domestic and foreignmotor vehicle manufacturers, insuranceand consumer organizations, safetyresearch organizations, universities,foreign government agencies, andindividual citizens.

Annual Estimated Burden: The totalestimated annual burden is 5,807 hours.ADDRESSES: Send comments to theOffice of Information and RegulatoryAffairs, Office of Management andBudget, 725–17th Street, NW,Washington, DC 20503, Attention OSTDesk Officer.

Comments are Invited on: whether theproposed collection of information isnecessary for the proper performance ofthe functions of the Department,including whether the information willhave practical utility; the accuracy ofthe Department’s estimate of the burdenof the proposed information collection;ways to enhance the quality, utility andclarity of the information to becollected; and ways to minimize theburden of the collection of informationon respondents, including the use ofautomated collection techniques orother forms of information technology.

Issued in Washington, DC, on November13, 1996.Phillip A. Leach,Clearance Officer, United States Departmentof Transportation.[FR Doc. 96–29484 Filed 11–15–96; 8:45 am]BILLING CODE 4910–62–P

Aviation Proceedings; AgreementsFiled During the Week Ending 11/8/96

The following Agreements were filedwith the Department of Transportationunder the provisions of 49 U.S.C. 412and 414. Answers may be filed within21 days of date of filing.Docket Number: OST–96–1923Date filed: November 4, 1996Parties: Members of the International

Air Transport AssociationSubject:

PTC12 MEX–EUR 0006 dated October25, 1996; Mexico-Europe Resos r1–26

Minutes—PTC12 MEX–EUR 0007dated November 1, 1996

Tables—PTC12 MEX–EUR Fares 0001dated October 25, 1996

Intended effective date: April 1, 1997Docket Number: OST–96–1924Date filed: November 4, 1996Parties: Members of the International


PTC12 SATL–EUR 0006 dated

November 1, 1996S. Atlantic-Europe Expedited Resos

002a & 015vIntended effective date: December 1,

1996Docket Number: OST–96–1925Date filed: November 4, 1996Parties: Members of the International


CAC/Reso/185 dated October 7, 1996Mail Vote A093—Alternative

Financial Arrangements for U.K.Agents

Intended effective date: December 1,1996

Docket Number: OST–96–1930Date filed: November 6, 1996Parties: Members of the International


PTC123 0003 dated October 8, 1996r1–20

North Atlantic ResolutionsMinutes—PTC123 0008 dated

November 5, 1996Tables—PTC123 Fares 0001 dated

October 25, 1996Intended effective date: March 1, 1997





Mid/South Atlantic ResolutionsTables—PTC123 Fares 0002 dated

October 25, 1996; PTC123 Fares0003 dated October 25, 1996

Intended effective date: March 1, 1997Docket Number: OST–96–1932Date filed: November 6, 1996Parties: Members of the International


PTC23 EUR–JK 0003 dated November5, 1996 r1–7

PTC23 EUR-JK 0004 dated November5, 1996 r-8

Europe-Japan/Korea Expedited ResosIntended effective date: December 15/

January 1, 1997Docket Number: OST–96–1935Date filed: November 8, 1996Parties: Members of the International


COMP Telex Mail Vote 835Cargo—Special Amending Reso 010ccEC Member StatesIntended effective date: July 1, 1997


Air Transport Association

Subject:TC31 Telex Mail Vote 834Fares from Cook Islands/New Zealand

to Canada/US/Mexico/Caribbeanr1–3, r–1—070vv, r–2—073mm, r–3—073q

Intended effective date: January 1,1997

Paulette V. Twine,Chief, Documentary Services Division.[FR Doc. 96–29426 Filed 11–15–96; 8:45 am]BILLING CODE 4910–62–P

Notice of Applications for Certificatesof Public Convenience and Necessityand Foreign Air Carrier Permits FiledUnder Subpart Q During the WeekEnding November 8, 1996

The following Applications forCertificates of Public Convenience andNecessity and Foreign Air CarrierPermits were filed under Subpart Q ofthe Department of Transportation’sProcedural Regulations (See 14 CFR302.1701 et. seq.). The due date forAnswers, Conforming Applications, orMotions to modify Scope are set forthbelow for each application. Followingthe Answer period DOT may process theapplication by expedited procedures.Such procedures may consist of theadoption of a show-cause order, atentative order, or in appropriate casesa final order without furtherproceedings.Docket Number: OST–95–676Date filed: November 4, 1996Due Date for Answers, Conforming

Applications, or Motion to ModifyScope: December 2, 1996

Description: Application of Falcon AirExpress, Inc. pursuant to 14 C.F.R.Section 302.4 and Subpart Q of theRegulations, for an amendment of itscertificate of public convenience andnecessity to the extent necessary tolift the current one (1) aircraftlimitation for domestic andinternational charter and sub-servicetransportation.

(Exhibit FAE–2, page 1–8, profit andloss statement are Confidential)Docket Number: OST–95–677Date filed: November 4, 1996Due Date for Answers, Conforming


Description: Application of Falcon AirExpress, Inc. pursuant to 14 C.F.R.Section 302.4 and Subpart Q of theRegulations, for an amendment of itscertificate of public convenience andnecessity to the extent necessary tolift the current one (1) aircraftlimitation for domestic andinternational charter and sub-servicetransportation.


(Exhibit FAE–2, page 1–8, profit andloss statement are Confidential)Docket Number: OST–96–1926Date filed: November 4, 1996Due Date for Answers, Conforming


Description: Application of AccessairHoldings, Inc., pursuant to 49 U.S.C.Section 41102 and Subpart Q of theRegulations, applies for a certificate ofpublic convenience and necessityauthorizing interstate and overseasscheduled air transportation ofpersons, property and mail: Betweenany point in any state in the UnitedStates or the District of Columbia, orany territory or possession of theUnited States, and any other point inany state of the United States or theDistrict of Columbia, or any territoryor possession of the United States.

Docket Number: OST–96–1929Date filed: November 6, 1996Due Date for Answers, Conforming


Description: Application of Delta AirLines, Inc., pursuant to 49 U.S.C.Sections 41102 and 41108 andSubpart Q of the Regulations, appliesfor renewal of its certificate of publicconvenience and necessity for Route562, segment 6, issued by Order 92–5–16, authorizing Delta to engage inforeign air transportation of persons,property and mail between theterminal points New York, N.Y./Newark, N.J.—Mexico City, Mexico.Delta’s certificate for Route 562,segment 6 expires on May 8, 1997.Delta requests renewal of itscertificate for an additional five yearduration.

Paulette V. Twine,Chief, Documentary Services Division.[FR Doc. 96–29425 Filed 11–15–96; 8:45 am]BILLING CODE 4910–62–P

Federal Aviation Administration

Correction to the Notice of Intent ToRule on Application To Impose andUse the Revenue From a PassengerFacility Charge (PFC) at BellinghamInternational Airport, Bellingham, WA

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Notice of intent to rule onapplication.

SUMMARY: This correction amends theinformation included in the previouslypublished notice.

In notice document Volume 61, No.180, dated Monday, September 16,1996, page 48729, under SUPPLEMENTARY

INFORMATION, the Class or classes of aircarriers which the public agency hasrequested not be required to collectPFCs should read as follows:‘‘Scheduled air carriers operatingaircraft with less than 10-seats, and non-scheduled air carrier and charter flightsusing aircraft with less than 10-seats.’’FOR FURTHER INFORMATION CONTACT:Ms. Mary Vargas, (206) 227–2660;Seattle Airports District Office, SEA–ADO; Federal Aviation Administration;1601 Lind Avenue SW, Suite 250;Renton, Washington, 98055–4056.

Issued in Renton, Washington onNovember 6, 1996.Sarah P. Dalton,Acting Manager, Planning, Programming andCapacity Branch, Northwest MountainRegion.[FR Doc. 96–29482 Filed 11–15–96; 8:45 am]BILLING CODE 4910–13–M

Notice of Intent To Rule on ApplicationTo Impose and Use the Revenue Froma Passenger Facility Charge (PFC) atBoston Logan International Airport,Boston, MA


SUMMARY: The FAA proposes to rule andinvites public comment on theapplication to impose and use therevenue from a Passenger FacilityCharge at Boston Logan InternationalAirport under the provisions of theAviation Safety and Capacity ExpansionAct of 1990 (Title IX of the OmnibusBudget Reconciliation Act of 1990)(Public Law 101–508) and Part 158 ofthe Federal Aviation Regulations (14CFR Part 158).DATES: Comments must be received onor before December 18, 1996.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress: Federal AviationAdministration, Airport Division, 12New England Executive Park,Burlington, Massachusetts 01803.

In addition, one copy of anycomments submitted to the FAA mustbe mailed or delivered to Mr. StephenP. Tocco, CEO/Executive Director,Massachusetts Port Authority at thefollowing address: Massachusetts PortAuthority, 10 Park Plaza, Boston,Massachusetts 02116.

Air carriers and foreign air carriersmay submit copies of written commentspreviously provided to theMassachusetts Port Authority under

section 158.23 of Part 158 of the FederalAviation Regulations.FOR FURTHER INFORMATION CONTACT:Priscilla A. Scott, PFC ProgramManager, Federal AviationAdministration, Airports Division, 12New England Executive Park,Burlington, Massachusetts 01803, (617)238–7614. The application may bereviewed in person at 16 New EnglandExecutive Park, Burlington,Massachusetts.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to imposeand use the revenue from a PassengerFacility Charge (PFC) at Boston LoganInternational Airport under theprovisions of the Aviation Safety andCapacity Expansion Act of 1990 (TitleIX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).

On October 18, 1996, the FAAdetermined that the application toimpose and use the revenue from a PFCsubmitted by the Massachusetts PortAuthority was substantially completewithin the requirements of section158.25 of Part 158 of the FederalAviation Regulations. The FAA willapprove or disapprove the application,in whole or in part, no later thanJanuary 18, 1997.

The following is a brief overview ofthe impose and use application.PFC Project #: 96–02–C–00–BOSLevel of the proposed PFC: $3.00Charge effective date: November 1, 1993Estimated charge expiration date:

August 31, 2012Estimated total net PFC revenue:

$705,128,000Brief description of project:Use only Projects:

Residential Sound InsulationTerminal E ModernizationReconstruction and Construction of

Circulating RoadwayImpose and Use Projects: Construction

of Elevated Walkways.Class or classes of air carriers which the

public agency has requested not berequired to collect PFCs: Air Taxi/Commercial Operators (ATCO).

Any person may inspect theapplication in person at the FAA officelisted above under FOR FURTHERINFORMATION CONTACT.

In addition, any person may, uponrequest, inspect the application, noticeand other documents germane to theapplication in person at theMassachusetts Port Authority, 10 ParkPlaza, Boston, Massachusetts 02116.


Issued in Burlington, Massachusetts onNovember 7, 1996.Bradley A. Davis,Assistant Manager, Airports Division, NewEngland Region.[FR Doc. 96–29483 Filed 11–15–96; 8:45 am]BILLING CODE 4910–13–M

Notice of Intent To Rule on ApplicationTo Use the Revenue From a PassengerFacility Charge (PFC) at BradleyInternational Airport, Windsor Locks,CT


SUMMARY: The FAA proposes to rule andinvites public comment on theapplication to use the revenue from aPassenger Facility Charge at BradleyInternational Airport under theprovisions of the Aviation Safety andCapacity Expansion Act of 1990 (TitleIX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).DATES: Comments must be received onor before December 18, 1996.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress: Federal AviationAdministration, Airport Division, 12New England Executive Park,Burlington, Massachusetts 01803.

In addition, one copy of anycomments submitted to the FAA mustbe mailed or delivered to Mr. Robert F.Juliano, Bureau Chief, for the State ofConnecticut at the following address:Connecticut Department ofTransportation, P.O. Box 317546,Newington, Connecticut 06131–7546.

Air carriers and foreign air carriersmay submit copies of written commentspreviously provided to the State ofConnecticut under section 158.23 ofPart 158 of the Federal AviationRegulations.FOR FURTHER INFORMATION CONTACT:Priscilla A. Scott, PFC ProgramManager, Federal AviationAdministration, Airports Division, 12New England Executive Park,Burlington, Massachusetts 01803, (617)238–7614. The application may bereviewed in person at 16 New EnglandExecutive Park, Burlington,Massachusetts.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to use therevenue from a Passenger Facility

Charge (PFC) at Bradley InternationalAirport under the provisions of theAviation Safety and Capacity ExpansionAct of 1990 (Title IX of the OmnibusBudget Reconciliation Act of 1990)(Public Law 101–508) and Part 158 ofthe Federal Aviation Regulations (14CFR Part 158).

On October 25, 1996, the FAAdetermined that the application to usethe revenue from a PFC submitted bythe State of Connecticut wassubstantially complete within therequirements of section 158.25 of Part158 of the Federal Aviation Regulations.The FAA will approve or disapprove theapplication, in whole or in part, no laterthan January 25, 1997.

The following is a brief overview ofthe use application.

PFC Project #: 96–05–U–00–BDL.Level of the proposed PFC: $3.00.Charge effective date: October 1, 1993.Actual charge expiration date:

December 1, 1995.Estimated total net PFC revenue:

$1,978,000.Brief description of project:

Construct Taxiway ‘‘J’’ BetweenTaxiway ‘‘R’’ and Runway 15–33

Install Remote Ramp LightsInstall Security Fencing

Class or classes of air carriers whichthe public agency has requested not berequired to collect PFCs: On demand AirTaxi/Commercial Operators (ATCO).


In addition, any person may, uponrequest, inspect the application, noticeand other documents germane to theapplication in person at the ConnecticutDepartment of Transportation Building,2800 Berlin Turnpike, Newington,Connecticut 06131–7546.


Notice of Intent To Rule on ApplicationTo Impose the Revenue From aPassenger Facility Charge (PFC) atBurlington International Airport,Burlington, VT

AGENCY: Federal; AviationAdministration (FAA), DOT.ACTION: Notice of intent to rule onapplication.

SUMMARY: The FAA proposes to rule andinvites public comment on the

application to impose the revenue froma Passenger Facility Charge atBurlington International Airport underthe provisions of the Aviation Safetyand Capacity Expansion Act of 1990(Title IX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).DATES: Comments must be received onor before December 18, 1996.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress: Federal AviationAdministration, Airport Division, 12New England Executive Park,Burlington, Massachusetts 01803.

In addition, one copy of anycomments submitted to the FAA mustbe mailed or delivered to Mr. John J.Hamilton, Airport Director forBurlington International Airport at thefollowing address: BurlingtonInternational Airport, 1200 AirportDrive, #1, South Burlington, Vermont05403.

Air carriers and foreign air carriersmay submit copies of written commentspreviously provided to the City ofBurlington under § 158.23 of Part 158 ofthe Federal Aviation Regulations.FOR FURTHER INFORMATION CONTACT:Priscilla A. Scott, PFC ProgramManager, Federal AviationAdministration, Airports Division, 12New England Executive Park,Burlington, Massachusetts 01803, (617)238–7614. The application may bereviewed in person at 16 New EnglandExecutive Park, Burlington,Massachusetts.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to imposethe revenue from a Passenger FacilityCharge (PFC) at Burlington InternationalAirport under the provisions of theAviation Safety and Capacity ExpansionAct of 1990 (Title IX of the OmnibusBudget Reconciliation Act of 1990)(Public Law 101–508) and Part 158 ofthe Federal Aviation Regulations (14CFR Part 158).

On October 18, 1996, the FAAdetermined that the application toimpose the revenue from a PFCsubmitted by the City of Burlington wassubstantially complete within therequirements of § 158.25 of Part 158 ofthe Federal Aviation Regulations. TheFAA will approve or disapprove theapplication, in whole or in part, no laterthan January 16, 1997.

The following is a brief overview ofthe impose application.PFC Project #: 96–01–1–00–BTVLevel of the proposed PFC: $3.00


Proposed Charge effective date:November 1, 1996

Estimated charge expiration date: June3, 2001.

Estimated total net PFC revenue:$5,696,253.

Brief description of project:Expand Terminal LandsideSouth Commuter Ramp ExpansionNorth End Development—Site

Preparation, Construct AirportPerimeter Road and North ApronExpansion

Reconstruct North End of Taxiway‘‘A’’

Purchase Snow Removal EquipmentClass or classes of air carriers which

the public agency has requested not berequired to collect PFCs: On demand AirTaxi/Commercial Operators (ATCO).


In addition, any person may, uponrequest, inspect the application, noticeand other documents germane to theapplication in person at the BurlingtonInternational Airport, 1200 AirportDrive, #1, South Burlington, Vermont,05403.


Notice of Intent To Rule on ApplicationTo Impose and Use the Revenue Froma Passenger Facility Charge (PFC) atKalamazoo/Battle Creek InternationalAirport, Kalamazoo, MI


SUMMARY: The FAA proposes to rule andinvites public comment on theapplication to impose and use therevenue from a PFC at Kalamazoo/BattleCreek International Airport under theprovisions of the Aviation Safety andCapacity Expansion Act of 1990 (TitleIX of the Omnibus BudgetReconciliation Act of 1990) (Public Law101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).DATES: Comments must be received onor before December 18, 1996.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress:

Federal Aviation Administration,Detroit Airports District Office, WillowRun Airport, East, 8820 Beck Road,Belleville, Michigan 48111.

In addition, one copy of anycomments submitted to the FAA mustbe mailed or delivered to Mr. KennethPotts, Airport Director of the County ofKalamazoo, Michigan at the followingaddress: Kalamazoo/Battle CreekInternational Airport, 5235 PortageRoad, Kalamazoo, MI 49002.

Air carriers and foreign air carriersmay submit copies of written commentspreviously provided to the County ofKalamazoo under section 158.23 of Part158.FOR FURTHER INFORMATION CONTACT:Mr. Jack D. Roemer, Program Manager,Federal Aviation Administration,Detroit Airports District Office, WillowRun Airport, East, 8820 Beck Road,Belleville, Michigan 48111, 313–487–7282. The application may be reviewedin person at this same location.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to imposeand use the revenue from a PFC atKalamazoo/Battle Creek InternationalAirport under the provisions of theAviation Safety and Capacity ExpansionAct of 1990 (Title IX of the OmnibusBudget Reconciliation Act of 1990)(Pub. L. 101–508) and Part 158 of theFederal Aviation Regulations (14 CFRPart 158).

On October 25, 1996, the FAAdetermined that the application toimpose and use the revenue from a PFCsubmitted by County of Kalamazoo,Michigan, was substantially completewithin the requirements of section158.25 of Part 158. The FAA willapprove or disapprove the application,in whole or in part, no later thanJanuary 29, 1997.

The following is a brief overview ofthe application.PFC Application No.: 97–01–C–00–AZOLevel of the proposed PFC: $3.00Proposed charge effective date: April 1,

1997Proposed charge expiration date:

December 31, 2001Total estimated PFC revenue:

$3,326,365.00

Brief Description of Proposed Project(s)

Projects To Impose and Use

1.1 Construct T-Hanger Taxiways,PAPI, and Building Removal.

1.2 Rehabilitate Entrance Road.1.3 Install Security Access System.1.4 Obstruction Removal.1.5 Acquire Frontend Loader.1.6 Construct Hold Aprons.

1.7 Construct GA Apron DrainageSystem and Acquire FrictionTesting Vehicle.

1.8 Acquire ARFF Vehicle.1.9 Taxiway G Rehabilitation.1.10 Light Taxiways F & G.1.11 Install Airfield Signs.1.12 Install Supplemental Wind Cones.1.13 Install Security Fencing.1.14 Construct Runway Fillets/GA

Taxistreets.1.15 Acquire SRE Truck with Plow.1.16 Environmental Assessment for GA

Taxiways.1.17 Master Plan Update.1.18 Taxiway C Rehabilitaiton.1.19 Install Wheelchair Lift.1.20 Acquire and Remove the Air Zoo

Restoration Center.1.21 Acquire Interactive Training

Network.1.23 Install Road Canopy.

Impose Only Project

1.24 Taxiway B Rehabilitation andRelocation.

1.25 Glycol Capture System.1.26 Construct Wetland Mitigation.1.27 Construct New Taxiway H.1.28 Commuter Concourse Expansion.1.29 Taxiway D Rehabilitation.1.30 Construct Perimeter Road.1.31 Taxiway A Rehabilitation.1.32 Taxiway E Rehabilitation.1.33 Baggage Claim Area Expansion.

Class or classes of air carriers whichthe public agency has requested not berequired to collect PFC’s: Part 135 AirTaxis.


In addition, any person may, uponrequest, inspect the application, notice,and other documents germane to theapplication in person at the County ofKalamazoo’s Airport Director’s Office.

Issued in Des Plaines, Illinois, onNovember 4, 1996.Benito De Leon,Manager, Planning/Programming Branch,Airport Division, Great Lakes Region.[FR Doc. 96–29410 Filed 11–15–96; 8:45 am]BILLING CODE 4910–13–M

Federal Railroad Administration

[Docket Nos. RSSI 96–1A and RSSI 96–1B,Notice No. 1]

Informal Safety Inquiry on One-PersonCrews and Remote-ControlLocomotive Operations

AGENCY: Federal RailroadAdministration (FRA), Department ofTransportation (DOT).


ACTION: Notice of informal safetyinquiry.

SUMMARY: The Federal RailroadAdministration (FRA) will conduct aninformal safety inquiry concerning aproposal by the Wisconsin Central Ltd.(WC) to expand its use of one-personcrews and remote-control locomotiveoperations. The United TransportationUnion (UTU) has filed two petitions foremergency orders requesting that: (1)FRA prohibit the WC from using one-person crews; and (2) FRA prohibit theuse of remote control locomotiveoperations by the WC and all otherrailroads. FRA intends to collectinformation to help it determinewhether emergency, regulatory, or otheraction is necessary. FRA asks interestedparties to comment on these subjects.

DATES: (1) The hearing will begin at 1:00p.m. on Wednesday, December 4, 1996,and conclude at 5:00 p.m. on Thursday,December 5th. All times noted areCentral Standard Time. (2) Preparedstatements to be made at the hearingshould be submitted to the Docket Clerkat least two working days before thehearing date (close of businessDecember 2, 1996). Parties who do notmeet that deadline may be denied theopportunity to present oral testimony,although their written statements willbe included in the record of thisproceeding. (3) Parties who do not wishto testify, but wish to submit writtencomments for inclusion in the safetyinquiry docket should submit them byDecember 2, 1996.

ADDRESSES: (1) Hearing location—PaperValley Inn, 333 West College Avenue,Appleton, Wisconsin, 54911, (414) 733–8000 (phone), (414) 733–9220 (fax). (2)Docket Clerk, Docket Nos. RSSI 96–1Aand RSSI 96–1B, Office of the ChiefCounsel, Federal RailroadAdministration, 400 7th Street, S.W.,Room 8201, Washington, D.C., 20590.Parties should address statements onone-person crews to Docket No. RSSI96–1A. Statements concerning remote-control locomotive operations should beaddressed to Docket No. RSSI 96–1B. Ifa statement concerns both issues, a copyof the statement should be addressed toeach docket.

FOR FURTHER INFORMATION CONTACT: S.Joseph Gallant, Operating PracticesSpecialist, FRA, 400 7th Street, S.W.,Washington, D.C. 20590, (202) 632–3371; or Patricia V. Sun, Trial Attorney,Office of Chief Counsel, FRA, 400 7thStreet, S.W., Washington, D.C. 20590,(202) 632–3183.

Background

One-Person CrewsThe Wisconsin Central Ltd. (WC)

operates about 2800 miles of railroad,primarily in Wisconsin and the UpperPeninsula of Michigan. Currently, theWC operates trains with one-personcrews on four routes: a 77-mile run onits White Pine subdivision; switchingoperations at the Pfizer Rock Quarry; a56-mile run between Wisconsin Rapids,Wisconsin and Merrillan, Wisconsin;and a 63-mile run between StevensPoint and Neenah, Wisconsin.

In January 1996, the WC proposed toexpand its use of one-person crews to anadditional four routes, beginning in May1996. The proposed routes are: a one-way 150-mile run between Sault Ste.Marie, Michigan and Gladstone,Michigan; a turnaround job betweenStevens Point and Neenah; a one-way38-mile turnaround job between Neenahand Fond du Lac, Wisconsin; and a 63-mile run between gravel quarries atSussex, Wisconsin and Grayslake,Illinois. METRA has recently begunoperating passenger train service onportions of this last route.

Other railroads, including theBurlington Northern Santa Fe, Conrail,and Springfield Terminal, currentlyoperate some trains with one-personcrews. For the most part, theseoperations are short, slow trains. (FRAdistinguishes these one-person crewsfrom the one person in the cab trainsoperated by Amtrak and somecommuter lines. In the latter type oftrain, there is actually a two-personcrew, since the engineer in thelocomotive cab control unit is assistedby a conductor in the passenger cars).The WC proposal, however, is novel inthat it would use one-person crews forthe first time on trains moving mixedfreight over long distances. Thus, theproposed operations pose manycomplex safety issues. In addition, onApril 25, 1996, the UnitedTransportation Union (UTU) filed apetition requesting that FRA issue anemergency order to prohibit the WCaltogether from using one-person crews.At about that time, FRA begandiscussions of its concerns about thesafety of these operations with the WC.

After several meetings betweenrepresentatives of FRA and the WC, theWC agreed in May to deferimplementation of any additional trainswith one-person crews pending furtherdiscussion of FRA’s concerns. At aspecial meeting convened by DeputyAdministrator Donald M. Itzkoff, FRApresented the WC with a list of criticalsafety issues and potential operationalproblems that FRA had identified. As

requested, the WC later submitted awritten action plan to FRA detailing itsproposed solutions to these problems.

Remote-Control Locomotive OperationsIn September 1996, the WC also

proposed to begin using remote-controlled yard locomotives in itsNeenah and Green Bay, Wisconsinyards. The UTU filed a second petitionfor an emergency order on September17, 1996, asking FRA to prohibit not justthe WC, but all railroads, from operatingengines or trains by remote control.

In 1993, FRA examined the issue ofremote-control locomotive operations inthe context of a waiver applicationsubmitted by the Wheeling & Lake ErieRailroad Company (W&LE) and thepromulgation of a proposed testprogram for remote control operations.(In response to the W&LE’s waiverapplication, the UTU had filed apetition requesting that FRA issue anemergency order against the W&LEprohibiting it from utilizing remotecontrol technology.) Public hearingswere held in both proceedings. Afterextensive review of both the technologyand W&LE’s operations, FRA denied theUTU’s petition and permitted the W&LEto use remote control technology subjectto certain conditions.

At the hearing, FRA will againconsider this issue. The two WCproposals, namely the use of one-personcrews and remote-control locomotiveoperations, are closely related, since theWC action plan envisions that anengineer working alone would use aremote control in numerous situations.For example, where a train is equippedwith a remote control unit, and anengineer must flag through an automaticinterlocking, the WC plan calls for theengineer to locate him or herself at thecrossing to furnish protection asrequired, and then use the remotecontrol unit to move the train to thecrossing where the engineer would thenreboard the locomotive.

Subjects of InquiryFRA has thoroughly reviewed the

action plan and other submissions bythe WC on the use of one-person crews,but seeks to develop additional facts aspart of the basis for its decisions on theUTU petitions and on whether there isa need for rulemaking on these subjects.Accordingly, FRA will conduct aninformal safety inquiry focussing on theWC’s proposed use of one-person crewsand remote-control locomotives.Interested parties may submit generalcomments on industry practice in theseareas as well, however. Prior to thehearing, a team of FRA inspectors willconduct site visits to the WC to inspect


its existing one-person crew operationsand gather background information.

General Concerns

For both subjects, FRA solicits writtenand oral comments on such topics as:

• Equipment standards• Design requirements• Employee training• Employee safety• Standard operating procedures• Train size and makeup• Terrain limitations• Communications• Inspections and tests• Operations securityThis list of issues is not meant to be

all-inclusive. Other concerns may alsobe raised and discussed at the hearing.

Authority: Secs. 6, 9, Pub. L. 89–670, 80Stat. 937, 944 (49 U.S.C. 1655, 1657); thestatutes referred to in sec. 6(e) (1), (2), (3),(6)(A) of Pub. L. 89–670, 80 Stat. 939 (49U.S.C. 1655); sec. 202 of Pub. L. 91–458, 84Stat. 971 as amended by sec. 5(a) of Pub. L.94–438 (45 U.S.C. 431); and 49 CFR 1.49,unless otherwise noted.Jolene M. Molitoris,Administrator.[FR Doc. 96–29547 Filed 11–15–96; 8:45 am]BILLING CODE 4910–06–P

National Highway Traffic SafetyAdministration

Research and Development ProgramsMeeting

AGENCY: National Highway TrafficSafety Administration, DOT.ACTION: Notice.

SUMMARY: This notice announces apublic meeting at which NHTSA willdescribe and discuss specific researchand development projects. Further, thenotice requests suggestions for topics tobe presented by the agency.DATES AND TIMES: The National HighwayTraffic Safety Administration will holda public meeting devoted primarily topresentations of specific research anddevelopment projects on December 11,1996, beginning at 1:30 p.m. and endingat approximately 5:00 p.m. The deadlinefor interested parties to suggest agendatopics is 4:15 p.m. on November 22,1996. Questions may be submitted inadvance regarding the agency’s researchand development projects. They must besubmitted in writing by November 29,1996, to the address given below. Ifsufficient time is available, questionsreceived after the November 29 date willbe answered at the meeting in thediscussion period. The individual,group, or company asking a questiondoes not have to be present for the

question to be answered. A consolidatedlist of the questions submitted byNovember 29 will be available at themeeting and will be mailed to requestersafter the meeting.ADDRESSES: The meeting will be held atthe Royce Hotel, Detroit Metro Airport,31500 Wick Road, Romulus, Michigan48174. Suggestions for specific R&Dtopics as described below and questionsfor the December 11, 1996, meetingrelating to the agency’s research anddevelopment programs should besubmitted to the Office of the AssociateAdministrator for Research andDevelopment, NRD–01, NationalHighway Traffic Safety Administration,Room 6206, 400 Seventh St., SW,Washington, DC 20590. The fax numberis 202–366–5930.SUPPLEMENTARY INFORMATION: NHTSAintends to provide detailedpresentations about its research anddevelopment programs in a series ofpublic meetings. The series started inApril 1993. The purpose is to makeavailable more complete and timelyinformation regarding the agency’sresearch and development programs.This fifteenth meeting in the series willbe held on December 11, 1996.

NHTSA requests suggestions frominterested parties on the specific agendatopics to be presented. NHTSA will baseits decisions about the agenda, in part,on the suggestions it receives by closeof business at 4:15 p.m. on November22, 1996. Before the meeting, it willpublish a notice with an agenda listingthe research and development topics tobe discussed. The agenda can also beobtained by calling or faxing theinformation numbers listed elsewhere inthis notice. NHTSA asks that thesuggestions be limited to six, in priorityorder, so that the presentations at theDecember 11 R&D meeting can be mostuseful to the audience. Specific R&Dtopics are listed below. Many of thesetopics have been discussed at previousmeetings. Suggestions for agenda topicsare not restricted to this listing, andinterested parties are invited to suggestother R&D topics of specific interest totheir organizations.

Specific R&D Topic isOn-line tracking system for NHTSA’s

research projects.

Specific Crashworthiness R&D TopicsAreAir bag assessment research,Improved frontal crash protection

(program status, problemidentification, offset testing),

Advanced glazing research,Vehicle aggressivity and fleet

compatibility,

Upgrade side crash protection,Upgrade seat and occupant restraint

systems,Child safety research (ISOFIX),Child restraint/air bag interaction

(CRABI) dummy testing,Truck crashworthiness/occupant

protection,Crash Injury Research and Engineering

Network (CIREN),National Transportation Biomechanics

Research Center (NTBRC),Head and neck injury research,Lower extremity injury research,Thorax injury research,Human injury simulation and analysis,Refinements to the Hybrid III dummy,

andAdvanced frontal test dummy.

Specific Crash Avoidance R&D TopicsAreStrategic plan for NHTSA’s Intelligent

Transportation Systems (ITS) crashavoidance research,

Anti-lock brake systems (ABS) researchplan,

Truck tire traction,Portable data acquisition system for

crash avoidance research (DASCAR),Systems to enhance EMS response

(automatic collision notification),Crash causal analysis,Human factors guidelines for crash

avoidance warning devices,Longer combination vehicle safety,Drowsy driver monitoring,Driver workload assessment,Pedestrian detection devices for school

bus safety,Preliminary rearend collision avoidance

system guidelines,Preliminary road departure collision

avoidance system guidelines,Preliminary intersection collision

avoidance system guidelines, andiminary lane change/merge collision

avoidance system guidelines.

National Center for Statistics andAnalysis (NCSA) Topics Are

Status of National Accident SamplingSystem (NASS), includingimplementation of electronic datacollection and changes in sampling,

New Crash Outcome Data EvaluationSystem (CODES) grants, and Specialcrash investigation studies of air bagcases.Separately, questions regarding

research projects that have beensubmitted in writing not later than closeof business on November 29, 1996, willbe answered. A transcript of themeeting, copies of materials handed outat the meeting, and copies of thesuggestions offered by commenters willbe available for public inspection in theNHTSA’s Technical Reference Division,


1 GWI is acquiring all of the outstanding capitalstock of Rail Link and will indirectly control CLNA,CWRY, and TRR.

Room 5108, 400 Seventh St., SW,Washington, DC 20590. Copies of thetranscript will then be available at 10cents a page, upon request to NHTSA’sTechnical Reference Division. TheTechnical Reference Division is open tothe public from 9:30 a.m. to 4:00 p.m.

NHTSA will provide technical aids toparticipants as necessary, during theResearch and Development ProgramsMeeting. Thus, any person desiring theassistance of ‘‘auxiliary aids’’ (e.g., sign-language interpreter, telecommunicationdevices for deaf persons (TTDs), readers,taped texts, braille materials, or largeprint materials and/or a magnifyingdevice), please contact Rita Gibbons on202–366–4862 by close of businessDecember 2, 1996.FOR FURTHER INFORMATION CONTACT: RitaGibbons, Staff Assistant, Office ofResearch and Development, 400Seventh Street, SW, Washington, DC20590. Telephone: 202–366–4862. Faxnumber: 202–366–5930.

Issued: November 12, 1996.William A. Boehly,Associate Administrator for Research andDevelopment.[FR Doc. 96–29409 Filed 11–15–96; 8:45 am]BILLING CODE 4910–59–P

Research and Special ProgramsAdministration

Pipeline Safety User Fees

AGENCY: Research and Special ProgramsAdministration (RSPA), DOT.ACTION: Notice.

SUMMARY: This notice announces thatthe fiscal year 1997 user fee assessmentsfor pipeline facilities will be mailed topipeline operators on or aboutDecember 10, 1996. The fees to beassessed for natural gas transmission,hazardous liquid and liquefied naturalgas (LNG) are as indicated below:

Natural gas transmission pipelines:$67.46 per mile (based on 295,217 milesof pipeline).

Hazardous liquid pipelines: $61.27per mile (based on 155,180 miles ofpipeline).

LNG is based on the number of plantsand total storage capacity:

Total storage capacity BBLSAssess-ment/plant

<10,000 ................................. = $1,25010,000–100,000 .................... = 2,500100,000–250,000 .................. = 3,750250,000–500,000 .................. = 5,000≤500,000 ............................... = 7,500

Section 60301 of Title 49, UnitedStates Code, authorizes the assessmentand collection of pipeline user fees tofund the pipeline safety activitiesconducted under 49 U.S.C. 60101 et seq.The Research and Special ProgramsAdministration (RSPA) assesses eachoperator of regulated interstate andintrastate natural gas transmissionpipelines (as defined in 49 CFR Part192), and hazardous liquid pipelinescarrying petroleum, petroleum products,anhydrous ammonia and carbon dioxide(as defined in 49 CFR Part 195) a shareof the total Federal pipeline safetyprogram costs in proportion to thenumber of miles of pipeline eachoperator has in service. Onshorepipelines excluded from regulation by49 CFR 195, are not included. Operatorsof LNG facilities are assessed based ontotal storage capacity (as defined in 49CFR Part 193).

In accordance with the provisions of49 U.S.C. § 60301, Departmentalresources were taken into considerationfor determining total program costs. Theapportionment ratio between gas andliquid, as shown below, is a result ofincreased program resources to thehazardous liquid program because ofenvironmental protection activities:

Year(s)

Generalprogram

costs (gas)(percent)

Generalprogram

costs (liq-uid)

(percent)

1986–1990 .......... 80 ............. 201991–1992 .......... 75 ............. 251993 .................... 75 (3⁄4yr) ... 25 (3⁄4yr)

60 (1⁄4yr) ... 40 (1/4yr)1994 .................... 60 ............. 401995 .................... 75 ............. 251996 .................... 65 ............. 351997 .................... 55 ............. 45

In accordance with the regulations ofthe Department of the Treasury, userfees will be due 30 days after the dateof the assessment. Interest, penalties,and administrative charges will beassessed on delinquent debts inaccordance with 31 U.S.C. 3717.

Issued in Washington, DC November 12,1996.Richard B. FelderAssociate Administrator for Pipeline Safety.[FR Doc. 96–29478 Filed 11–15–96; 8:45 am]BILLING CODE 4910–60–P

Surface Transportation Board

[STB Finance Docket No. 33287]

Delaware Valley Railway Company,Inc.—Acquisition and OperationExemption—Gettysburg RailroadCompany

Delaware Valley Railway Company,Inc., a Class III shortline carrier, hasfiled a notice of exemption under 49CFR 1150.41 to acquire and operateapproximately 23.4 route miles fromGettysburg Railroad Company betweenapproximately milepost 31.2, atGettysburg, PA, and milepost 7.8, atMount Holly Springs, PA.

The transaction is expected to beconsummated on or about November 15,1996.

If the notice contains false ormisleading information, the exemptionis void ab initio. Petitions to revoke theexemption under 49 U.S.C. 10502(d)may be filed at any time. The filing ofa petition to revoke does notautomatically stay the transaction.

An original and 10 copies of allpleadings, referring to STB FinanceDocket No. 33287, must be filed withthe Surface Transportation Board, Officeof the Secretary, Case Control Branch,1201 Constitution Avenue, N.W.,Washington, DC 20423. In addition, acopy of each pleading must be servedon: Robert A. Wimbish, Esq., Rea, Cross& Auchincloss, Suite 420, 1920 N Street,N.W., Washington, DC 20036.Telephone: (202) 785–3700.

Decided: November 7, 1996.By the Board, David M. Konschnik,

Director, Office of Proceedings.Vernon A. Williams,Secretary.[FR Doc. 96–29433 Filed 11–15–96; 8:45 am]BILLING CODE 4915–00–P

[STB Finance Docket No. 33291]

Genesee & Wyoming Inc.—ControlExemption—Rail Link, Inc.

Genesee & Wyoming Inc. (GWI), anoncarrier holding company, has filed anotice of exemption to acquire controlthrough stock ownership of Rail Link,Inc. (Rail Link), a noncarrier holdingcompany. Rail Link controls threeseparate Class III railroads as follows:Carolina Coastal Railway, Inc. (CLNA);Commonwealth Railway, Inc. (CWRY);and Talleyrand Terminal Railroad(TRR).1

The transaction will be consummatedon or after November 8, 1996.


GWI controls 11 existing Class IIIcarrier subsidiaries: Genesee &Wyoming Railroad Company, Inc.,operating in western New York;Dansville and Mount Morris RailroadCompany, operating in New York;Rochester & Southern Railroad, Inc.,operating in New York; Louisiana &Delta Railroad, Inc., operating inLouisiana; Buffalo & PittsburghRailroad, Inc., operating in New Yorkand Pennsylvania; Bradford IndustrialRail, Inc., operating in Pennsylvania andNew York; Allegheny & EasternRailroad, Inc., operating inPennsylvania; Willamette & PacificRailroad, Inc., operating in Oregon; GWISwitching Services, operating in Texas;Illinois & Midland Railroad, Inc.,operating in Illinois; and Pittsburg &Shawmut Railroad, Inc., operating inPennsylvania.

GWI states that (i) CLNA, CWRY, andTRR will not connect with any railroadin the GWI corporate family; (ii) theacquisition of control is not part of aseries of anticipated transactions thatwould connect the Rail Linksubsidiaries with any railroad in theGWI corporate family; and (iii) thetransaction does not involve a Class Icarrier. Therefore, the transaction isexempt from the prior approvalrequirements of 49 U.S.C. 11323. See 49CFR 1180.2(d)(2).

Under 49 U.S.C. 10502(g), the Boardmay not use its exemption authority torelieve a rail carrier of its statutoryobligation to protect the interests of itsemployees. Section 11326(c), however,does not provide for labor protection fortransactions under sections 11324 and11325 that involve only Class III railcarriers. Because this transactioninvolves Class III rail carriers only, theBoard, under the statute, may notimpose labor protective conditions forthis transaction.

If the notice contains false ormisleading information, the exemptionis void ab initio. Petitions to revoke theexemption under 49 U.S.C. 10502(d)may be filed at any time. The filing ofa petition to revoke will notautomatically stay the transaction.

An original and 10 copies of allpleadings, referring to STB FinanceDocket No. 33291, must be filed withthe Surface Transportation Board, Officeof the Secretary, Case Control Branch,1201 Constitution Avenue, N.W.,Washington, DC 20423. In addition, acopy of each pleading must be served onEric M. Hocky, Esq., Gollatz, Griffin, &Ewing, P.C., 213 W. Miner Street, P.O.Box 796, West Chester, PA 19381-0796.

Decided: November 7, 1996.

By the Board, David M. Konschnik,Director, Office of Proceedings.Vernon A. Williams,Secretary.[FR Doc. 96–29437 Filed 11–15–96; 8:45 am]BILLING CODE 4915–00–P

UNITED STATES INSTITUTE OFPEACE

Sunshine Act Meeting

DATE/TIME: Thursday, November 21,1996, 9:00 a.m.—5:30 p.m.LOCATION: 1550 M Street, NW, M StreetLobby Conference Room, Washington,DC 20005.STATUS: Open Session—Portions may beclosed pursuant to Subsection (c) ofSection 552(b) of Title 5, United StatesCode, as provided in subsection1706(h)(3) of the United States Instituteof Peace Act, Public Law 98–525.AGENDA: November Board Meeting;Approval of Minutes of the Seventy-seventh Meeting of the Board ofDirectors; Chairman’s Report;President’s Report; Committee Reports;Review of Grant Applications; Long-Term Planning Goals; Other GeneralIssues.CONTACT: Dr. Sheryl Brown, Director,Office of Communications, Telephone:(202) 457–1700.

Dated: November 13, 1996.Charles E. Nelson,Vice President for Management and Finance,United States Institute of Peace.[FR Doc. 96–29522 Filed 11–13–96; 4:32 pm]BILLING CODE 6820–AR–M

DEPARTMENT OF VETERANSAFFAIRS

Future of VA Long-Term Care AdvisoryCommittee, Notice of Establishment

As required by Section 9(a)(2) of theFederal Advisory Committee Act, U.S.C.(App. 1), the VA hereby gives notice ofthe establishment of the Future of VALong-Term Care Advisory Committee.The Committee’s review is essential toensure that VA is sufficiently addressingthe long-term care needs of veterans,thus VA has determined that this actionis in the public interest. Additionally,this Committee’s mission does notduplicate the mission of any VAcommittee.

The objectives of this Committee areto advise the Under Secretary for Healthabout the structure and delivery of long-term care services and makerecommendations necessary for VA tofoster progress in this area. The

Committee will review the backgroundof nursing home and community-basedlong-term care in VA, its existingstructure, and its mission within thenew healthcare arena and thedemographic changes of the veteranpopulation. The Committee willexamine such issues as: targetpopulations for long-term care services;the size and mix of institutional andnon-institutional services; and prioritiesfor care when demand for servicesexceeds the supply.

The Committee’s membership will beselected on the basis of knowledge andexperience in current and future long-term care services. To ensure a balancein the recommendations made to theUnder Secretary for Health, theCommittee will be composed ofindividuals with expertise in currenthealth care practices, economics andplanning for long-term care, businesspractice and entrepreneurial ventures.Appointments will be for the durationof the Committee unless otherwisedirected by the Secretary of VeteransAffairs. This is a mission-specificcommittee which will be terminated assoon as the stated mission is complete.

The Designated Federal Official forthe Committee is Daniel Schoeps, M.A.,Chief Community Care Programs,Veterans Health Administration, at (202)273–8543.

Dated: November 11, 1996.By Direction of the Secretary.

Eugene A. Brickhouse,Committee Management Officer.[FR Doc. 96–29422 Filed 11–15–96; 8:45 am]BILLING CODE 8320–01–M

Advisory Committee on FormerPrisoners of War; Notice of Meeting

The Department of Veterans Affairs(VA) gives notice under Public Law 92–463 that a meeting of the AdvisoryCommittee on Former Prisoners of Warwill be held at the Town and CountryHotel, 500 Hotel Circle North, SanDiego, California 92108–3091, fromDecember 4, 1996, through December 6,1996. The meeting will convene at 8:30a.m. each day and will be open to thepublic.

The purpose of the Committee is toadvise the Secretary of Veterans Affairson the administration of benefits underTitle 38, United States Code, forveterans who are former prisoners ofwar, and to make recommendations onthe need of such veterans forcompensation, health care andrehabilitation.

On the morning of December 4, thecommittee will receive briefings and


hold discussions on general businessand subcommittee reports. In theafternoon, the committee will receive areport from the subcommittee on thequality of POW examinations. On themorning of December 5, the committeewill hold discussions on generalbusiness. In the afternoon, they willvisit the VA Medical Center. OnDecember 6, the committee will separateinto subcommittee working groups(medical/technical).

Members of the public may directquestions or submit prepared statementsfor review by the Committee in advanceof the meeting, in writing only, to Ms.Kristine A. Moffitt, Director,Compensation and Pension Service (21),Department of Veterans Affairs, 810Vermont Avenue, N.W., Washington,DC 20420. Submitted material must bereceived at least five business days priorto the meeting. Members of the publicmay be asked to clarify submitted

material prior to consideration by theCommittee.

A report of the meeting and roster ofCommittee members may be obtainedfrom Ms. Moffitt.

By Direction of the Secretary.Dated: November 6, 1996.

Eugene A. Brickhouse,Committee Management Officer.[FR Doc. 96–29421 Filed 11–15–96; 8:45 am]BILLING CODE 8320–01–M

fede

ral r

egiste

r

58743

MondayNovember 18, 1996

Part II

EnvironmentalProtection Agency40 CFR Parts 79 and 80Regulation of Fuels and Fuel Additives:Minor Revisions; Final Rule




[FRL–5651–3]

Regulation of Fuels and FuelAdditives: Minor Revisions

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Direct final rule.

SUMMARY: The purpose of this action isto make minor revisions and correctionsaffecting recently-promulgated rules.First, a regulatory provision included inthe health effects testing requirementsfor fuel and fuel additive registration (at40 CFR part 79) is revised to ensuresufficient scheduling flexibility whentest laboratories encounter technicalproblems. Second, a provisioninadvertently omitted from both theInterim Detergent Program and theDetergent Certification Program is addedto the regulations (at 40 CFR part 80).The new provision will allow adetergent additive manufacturer toapply one set of performancedemonstration tests to multipledetergent additive products containingthe same active ingredients. Finally, aregulatory numbering error and asyntactical error affecting the DetergentCertification rule are corrected.

These changes are being implementedwithout prior notice because EPAbelieves that they are not controversial.Both of the affected programs serve thepublic health and environmentalprotection goals of the Clean Air Act(CAA). The detergent certificationprogram is intended to ensure theemission reduction and fuel efficiencybenefits of gasoline detergent additives.The fuel and fuel additive (F/FA) healtheffects testing program is designed todetermine if the emissions of certaingasoline or diesel F/FAs present anunacceptable risk to the public health.The corrections implemented by today’saction will facilitate attainment of theseprogram objectives by simplifying theregulatory requirements which mightotherwise pertain to some regulatedparties.DATES: This action will be effective onJanuary 17, 1997 unless EPA receives anadverse comment or a request for apublic hearing by December 18, 1996. IfEPA receives an adverse comment orhearing request by that date, EPA willpublish timely notice in the FederalRegister withdrawing this rule.ADDRESSES: Materials relevant to thisrulemaking have been placed in DocketsA–90–07 and A–91–77. The dockets are

located at the U.S. EnvironmentalProtection Agency, Air Docket Section(LE–131), 401 M Street, S.W.,Washington, DC 20460 in Room M–1500of Waterside Mall. Documents may beinspected between the hours of 8:00a.m. and 5:30 p.m., Monday throughFriday. A reasonable fee may be chargedfor copying. Those wishing to notifyEPA of their intent to submit an adversecomment or request a public hearingshould contact Jeff Herzog (313) 668–4227, U.S. EPA, Office of MobileSources, Fuels and Energy Division,2565 Plymouth Rd., Ann Arbor, MI48105 or Jim Caldwell (202) 233–9303,EPA, Office of Mobile Sources, Fuelsand Energy Division, Mail Code 6401J,401 M St. SW., Washington DC 20460.

FOR FURTHER INFORMATION CONTACT: Forinformation related to the registration offuels and fuel additives under 40 CFRpart 79, contact: Joseph Fernandes (202)233–9756 or James W. Caldwell (202)233–9303, U.S. EPA, Office of MobileSources, Fuels and Energy Division,Mail Code 6406J, 401 M Street, SW.,Washington, DC 20460. For informationrelated to detergent additivecertification under 40 CFR part 80,contact: Jeffrey A. Herzog, U.S. EPA(FED), Office of Mobile Sources, Fuelsand Energy Division, 2565 PlymouthRoad, Ann Arbor, MI 48105.


I. Regulated Entities

Regulated categories and entitiespotentially affected by this actioninclude:

Category Examples of regulated entities

Industry Manufacturers of gasoline anddiesel fuel.

Manufacturers of additives forgasoline and diesel fuel.

This table is not intended to beexhaustive, but rather provides a guidefor readers regarding entities likely to beregulated by this action. This table liststhe types of entities that EPA is nowaware could potentially be regulated bythis action. Other types of entities notlisted in the table could also beregulated. To determine whether yourentity would be affected by this action,you should carefully examine thispreamble and the proposed changes tothe regulatory text. You should alsocarefully examine the existingprovisions of the Fuels and FuelAdditives Registration Program at 40CFR part 79 and the DetergentCertification Program at 40 CFR part 80.

II. F/FA Health Effects Testing ProgramCorrection

A. BackgroundIn accordance with CAA sections 211

(a) and (b)(1), EPA issued, in 1975, basicregistration requirements applicable togasoline and diesel fuels and theiradditives. These regulations requiremanufacturers to submit information ontheir F/FA products (e.g., commercialidentity, chemical composition,purpose-in-use, and recommendedrange of concentration) in order to havesuch products registered by EPA and tobe permitted to market them in the U.S.

Additional registration requirements,implementing sections 211 (b)(2) and(e), were finalized on May 27, 1994 (59FR 33042, June 27, 1994). Theseregulations require manufacturers, aspart of their F/FA registrationresponsibilities, to conduct tests andsubmit information on the health effectsof their F/FA products. Organizedwithin a three-tier structure, therequirements include detailed emissionsanalysis, literature search, andtoxicologic studies involving theexposure of laboratory animals to F/FAemissions.

On July 11, 1996, EPA published twoadditional Federal Register noticesconcerning the F/FA registration andhealth effects testing requirements. Onewas a Notice of Proposed Rulemaking(61 FR 36535) requesting publiccomment on proposed changes designedto clarify and streamline a variety oforganizational, technical, and recordkeeping provisions of the program. Thesecond notice (61 FR 36506) was adirect final rule which, in the absenceof adverse public comment prior toAugust 12, 1996, implemented severalother, relatively minor technicalchanges.

One of the regulatory sections affectedby the direct final rule was § 79.61(d)(5),which contains general rules governingexposure interruptions duringtoxicologic studies. In changing thissection, the intent was to clarify therule’s language and to make theexposure interruption rules moreconsistent with customary laboratorypractices. EPA wished to allowreasonable flexibility in the schedulingand conduct of these complex studies.On the other hand, EPA’s interest in therelative toxicity of different F/FAsdictated that controllable sources ofvariability between tests and test labsshould be minimized. Thus, asdiscussed in the preamble to the rule,EPA expressly intended not to includeallowances for Federal holidays in theexposure rules. It was for this reasonthat the revised language included the


1 In general, the requirements of the certificationprogram become mandatory for detergent additivemanufacturers and blenders on July 1, 1997 and forgasoline retailers on August 1, 1997.

constraint that ‘‘No more than two non-exposure days may occur consecutivelyduring the exposure period, includingdays on which the minimum exposuretime has not been met.’’ Toxicologicstudies which did not comply with thisrule would be considered void.

B. Today’s Action

EPA now realizes that, as revised, theexposure rules are considerably morestringent than intended. While theprohibition against three consecutivenon-exposure days does effectivelydisallow holiday downtime, it may alsounreasonably penalize testers whounintentionally miss a third consecutiveexposure day due to technicaldifficulties. This might occur, forexample, if unexpected equipmentproblems are encountered on a Mondayafter an ordinary two-day weekend off.As currently written, the rule does notprovide a way to remedy suchoccurrences. Thus, studies which areotherwise acceptable could become voidunnecessarily, and large financialexpenditures for repeat testing might beincurred.

The revisions finalized today willprevent these unintended results. Thenew version still specifies that threeconsecutive non-exposure days arenormally not permitted. However, if athird consecutive day is missed due tocircumstances beyond the tester’scontrol, the rule provides that it may becured by adding a supplementaryexposure day at the next availableopportunity or, if necessary, at the endof the standard test period. Thesemechanisms should furnish thescheduling flexibility needed to addressequipment and other technical problemswhich arise during the conduct oflaboratory studies. Nevertheless,sufficient regulatory controls areretained to encourage good-faith effortsto adhere to regular test schedules,technical procedures, and effectivepreventive maintenance practices.

It should be noted that, in instanceswhere the exposure requirements of aspecific test protocol differ from thegeneral exposure guidelines finalizedtoday, then the requirements of thespecific test protocol take precedence.For example, the general exposureguidelines do not affect the exposuretiming requirement specified in§ 79.63(e)(4)(iii) of the fertilityassessment-teratology guideline, whichstates that pregnant animal subjects‘‘shall be exposed to the test atmosphereon each and every day between (andincluding) the first and fifteenth day ofgestation.’’

III. Detergent Additive ProgramCorrection

A. BackgroundThe final rule establishing the

Detergent Certification Program waspublished July 5, 1996 (61 FR 35309).The certification rule modified, and willlater supersede,1 the existing InterimDetergent Program, which waspublished October 14, 1994 (59 FR54678) and became effective January 1,1995. These rules were promulgated incompliance with CAA section 211(l),which requires all gasoline sold ortransferred to the consumer beginningJanuary 1, 1995 to contain additivespreventing the accumulation of depositsin engines or fuel supply systems. TheCAA charged EPA with the task ofestablishing specifications for suchdetergent additives.

The interim detergent programrequires virtually all gasoline used bythe consumer to contain effectivedetergent additives for the control ofport fuel injector deposits (PFID) andintake valve deposits (IVD). However,the interim program does not includespecific performance tests and standardsfor the additives. In contrast, thedetergent certification program requiresmanufacturers to conduct specificvehicle-based performance tests, usingindustry-standard test procedures andspecified test fuels, to demonstrate theeffective control of IVD and PFID. Thesecertification tests are the basis fordetermining the minimumconcentration at which a detergentadditive can be used in gasoline (i.e.,the lowest additive concentration orLAC).

B. Today’s Actions

1. Multiple Versions of DetergentPackages

Detergent additive manufacturerscommonly produce and market (andthus must register under 40 CFR part 79)a number of commercial additiveproducts containing the same detergent-active ingredient(s) at differentconcentrations. EPA understands thatthis is a normal business practice, anddoes not believe it is necessary ordesirable to require the effectiveness ofeach such product variant to bedemonstrated in separate certificationtests. As EPA stated in the preamble tothe interim detergent rule:

EPA agrees that separate performance testsshould not be needed for multiple detergentadditive packages which contain the same

active detergent ingredients in differentconcentrations, provided that the minimumrecommended treat rate specified in theregistration information for each additivepackage properly accounts for the variationsin concentration. Specifically, for eachregistered detergent package which themanufacturer intends to support with asingle set of test data, the final concentrationof active detergent ingredients (resultingwhen the detergent package is added togasoline at its respective minimumrecommended treat rate) must be no less thanthe minimum concentrations shown to beeffective by the testing * * * [S]eparatesupporting data are needed only if the actualchemical identity of an active detergentingredient is changed. (59 FR 54688–89)

Thus, it has not been EPA’s intent torequire duplicative certification testingfor different versions of a particulardetergent additive package. Through anoversight, however, a regulatoryprovision to codify this principle wasnot included in the interim detergentprogram regulations, nor did such aprovision appear in the finalcertification program regulations.Today’s action corrects theseunintentional oversights by adding newregulatory text at § 80.141(c)(3)(v) and§ 80.161(b)(1)(ii)(D). The new regulatoryprovisions permit a detergent additivemanufacturer to apply one set ofperformance data to multiple detergentadditive products containing the sameactive ingredients, provided that theminimum recommended concentrationor LAC recorded for each product isadjusted accordingly.

2. Typographical CorrectionsThe Federal Register document

which published the detergentcertification final rule (61 FR 35309)contained a numbering error affecting aregulatory provision. Specifically, theprovision on ‘‘Procedures for curing userestrictions,’’ which should have beenlabeled as paragraph (9) (nine) in§ 80.169(c), was mistakenly labeled asparagraph (g) in § 80.169. In the sameparagraph, a reference to ‘‘thisparagraph (g)’’ should have referred to‘‘this paragraph (c)(9)’’. In addition, thetitle of the paragraph should haveappeared in italic rather than regulartype font. These errors are corrected inthis direct final rule.

Finally, a syntactical error was madein § 80.172(e), which concerns penaltiesrelated to non-conformity with theproduct transfer document requirementsof the detergent certification program. Inparagraph (2) of this section, there is anerroneous reference to ‘‘gasoline notadditized in conformity with interimdetergent program requirements,’’ ratherthan a proper reference to ‘‘gasoline notadditized in conformity with detergent


certification program requirements.’’This error is corrected in this directfinal rule.

IV. Administrative Requirements

A. Administrative Designation andRegulatory Analysis

Under Executive Order 12866 (58 FR51735, Oct. 4, 1993), the Agency mustdetermine whether this regulatoryaction is ‘‘significant’’ and thereforesubject to OMB review and therequirements of the Executive Order.The order defines ‘‘significantregulatory action’’ as any regulatoryaction that is likely to result in a rulethat may:

(1) Have an annual effect on theeconomy of $100 million or more oradversely affect in a material way theeconomy, a sector of the economy,productivity, competition, jobs, theenvironment, public health or safety, orState, local, or tribal governments orcommunities;

(2) Create a serious inconsistency orotherwise interfere with an action takenor planned by another agency;

(3) Materially alter the budgetaryimpact of entitlements, grants, user fees,or loan programs or the rights andobligations of recipients thereof; or,

(4) Raise novel legal or policy issuesarising out of legal mandates, thePresident’s priorities, or the principlesset forth in the Executive Order.

Pursuant to the terms of ExecutiveOrder 12866, EPA has determined thatthis direct final rule is not a ‘‘significantregulatory action’’. The regulatorycorrections included in this notice willresult in reduction of potential testingcosts and related compliance burdens.

B. Regulatory Flexibility AnalysisEPA has determined that it is not

necessary to prepare a regulatoryflexibility analysis in connection withthis direct final rule. EPA hasdetermined that this rule will not havea significant adverse economic impacton a substantial number of smallbusinesses. On the contrary, thecorrections implemented by this rulewill simplify compliance and reducepotential testing requirements for allaffected parties.

C. Paperwork Reduction ActThe Paperwork Reduction Act of

1980, 44 U.S.C. 3501 et seq., andimplementing regulations, 5 CFR Part1320, do not apply to this action as itdoes not involve the collection ofinformation as defined therein.

D. Unfunded Mandates Reform ActUnder section 202 of the Unfunded

Mandates Reform Act of 1995

(‘‘Unfunded Mandates Act’’), signedinto law on March 22, 1995, EPA mustprepare a budgetary impact statement toaccompany any proposed or final rulethat includes a Federal mandate thatmay result in expenditure by State,local, and tribal governments, in theaggregate; or by the private sector, of$100 million or more. Under Section205, EPA must select the most cost-effective and least burdensomealternative that achieves the objectivesof the rule and is consistent withstatutory requirements. Section 203requires EPA to establish a plan forinforming and advising any smallgovernments that may be significantlyor uniquely impacted by the rule. TheAgency has determined that the directfinal rule promulgated today does notinclude a federal mandate that mayresult in estimated costs of $100 millionor more to either State, local, or tribalgovernments in the aggregate, or to theprivate sector. This action does notestablish regulatory requirements thatmay significantly or uniquely affectsmall governments. In fact, this actionhas the effect of reducing potentialregulatory burdens. Therefore, therequirements of the Unfunded MandatesReform Act do not apply.

E. Submission to Congress and theGeneral Accounting Office

Under 5 U.S.C. 801(a)(1)(A) as addedby the Small Business RegulatoryEnforcement Fairness Act of 1996, EPAsubmitted a report containing this ruleand other required information to theU.S. Senate, the U.S. House ofRepresentatives and the ComptrollerGeneral of the General AccountingOffice prior to publication of the rule intoday’s Federal Register. This rule isnot a ‘‘major rule’’ as defined by 5U.S.C. 804(2).

V. Electronic Copies of RulemakingDocuments

Electronic copies of this rule, andearlier rulemaking documents related tothe F/FA Registration Program, theInterim Detergent Program, and theDetergent Certification Program, areavailable free of charge on EPA’sTechnology Transfer Network BulletinBoard System (TTNBBS) and on theInternet. For specific instructions,contact Joseph Fernandes at the phonenumber or address above. Thesedocuments are also available in thepublic dockets referenced above.

List of Subjects

40 CFR Part 79

Environmental protection, Fuels, Fueladditives, Gasoline, Motor vehicle

pollution, Penalties, Reporting andrecordkeeping requirements.

40 CFR Part 80

Environmental protection, Fueladditives, Gasoline detergent additives,Gasoline, Motor vehicle pollution,Penalties, Reporting and recordkeepingrequirements.

Dated: November 7, 1996.Carol M. Browner,Administrator.

For the reasons set forth in thepreamble, parts 79 and 80 of title 40 ofthe Code of Federal Regulations areamended as follows:

PART 79—[AMENDED]


Authority: 42 U.S.C. 7414, 7524, 7545 and7601.

2. Section 79.61 is amended byrevising paragraph (d)(5) to read asfollows:

§ 79.61 Vehicle emissions inhalationexposure guideline.

* * * * *(d) * * *(5) Exposure conditions. Unless

precluded by the requirements of aparticular test protocol, animal subjectsshall be exposed to the test atmospherebased on a nominal 5-day-per-weekregimen, subject to the following rules:

(i) Each daily exposure must be atleast 6 hours plus the time necessary tobuild the chamber atmosphere to 90percent of the target exposureatmosphere. Interruptions of dailyexposures caused by technicaldifficulties, if infrequent in occurrenceand limited in duration, may be madeup the same day by adding equivalentexposure time after the technicalproblem has been corrected and theexposure atmosphere restored to therequired level.

(ii) Normally, no more than two non-exposure days may occur consecutivelyduring the test period. However, if athird consecutive non-exposure dayshould occur due to circumstancesbeyond the tester’s control, it may beremedied by adding a supplementaryexposure day. Federal and otherholidays do not constitute suchcircumstances. Whenever possible, amake-up day should be taken at the firstopportunity, i.e., on the next day whichwould otherwise have been anintentional non-exposure day. If acompensatory day must be scheduled atthe end of the standard test period, thenit may occur either:


(A) Immediately following the laststandard exposure day, with nointervening non-exposure days; or

(B) With up to two intervening non-exposure days, provided that no fewerthan two consecutive compensatoryexposure days are completed before thetest is terminated and the animalssacrificed.

(iii) Except as allowed in paragraph(d)(5)(ii)(B) of this section, in no caseshall there be fewer than four exposuredays per week at any time during thetest period.

(iv) A nominal 90-day (13-week)subchronic test period shall include nofewer than 63 total exposure days.* * * * *

PART 80—[AMENDED]


Authority: 42 U.S.C. 7414, 7545 and7601(a).

2. § 80.141 is amended by addingparagraph (c)(3)(v) to read as follows:

§ 80.141 Interim detergent gasolineprogram.

* * * * *(c) * * *(3) * * *(v) A manufacturer may use a single

set of test data to demonstrate thedeposit control effectiveness of morethan one registered detergent additiveproduct, provided that:

(A) the additive products contain allof the same detergent-activecomponents and no detergent-activecomponents other than those containedin common; and

(B) the minimum concentrationrecommended for the use of each suchadditive product is specified such that,when each additive product is mixed ingasoline at the recommendedconcentration, each of its detergent-active components will be present at afinal concentration no less than thelowest concentration for that componentshown to be effective by the dataavailable for the tested additive product.* * * * *

3. § 80.161 is amended by addingparagraph (b)(1)(ii)(D) to read as follows:

§ 80.161 Detergent additive certificationprogram.* * * * *

(b) * * *(1) * * *(ii) * * *(D) A manufacturer may use a single

set of certification test data todemonstrate the deposit controleffectiveness of more than oneregistered detergent additive product,provided that:

(1) the additive products contain all ofthe same detergent-active componentsand no detergent-active componentsother than those contained in common;and

(2) the minimum concentrationrecommended for the use of each such

additive product is specified such that,when each additive product is mixed ingasoline at the recommendedconcentration, each of its detergent-active components will be present at afinal concentration no less than thelowest concentration of that componentwhich was present when the testedadditive product met the PFID and IVDperformance standards specified in§ 80.165.* * * * *

§ 80.169 [Amended]

4. § 80.169 is amended byredesignating paragraph (g) as paragraph(c)(9); in newly designated paragraph(c)(9) introductory text, by revising thereference ‘‘this paragraph (g)’’ to read‘‘this paragraph (c)(9)’’; and byitalicizing the heading of paragraph(c)(9).

5. § 80.172 is amended by revisingparagraph (e)(2) to read as follows:

§ 80.172 Penalties.

* * * * *(e) * * *(2) The day that gasoline not

additized in conformity with detergentcertification program requirements, as aresult of the PTD non-conformity, isoffered for sale or is dispensed to theultimate consumer.* * * * *[FR Doc. 96–29180 Filed 11–15–96; 8:45 am]BILLING CODE 6560–50–P

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Part III

EnvironmentalProtection AgencyAgency Information Collection Activities;Proposed Collection; Comment Request;Environmental Leadership Program;Notice



[FRL–5652–6]

Agency Information CollectionActivities: Proposed Collection;Comment Request; EnvironmentalLeadership Program


SUMMARY: In compliance with thePaperwork Reduction Act (44 U.S.C.3501 et seq.), this notice announces thatEPA is planning to submit the followingproposed and/or continuing InformationCollection Request (ICR) to the Office ofManagement and Budget (OMB):Environmental Leadership Program,EPA ICR number 1794.01. Beforesubmitting the ICR to OMB for reviewand approval, EPA is solicitingcomments on specific aspects of theproposed information collection asdescribed below.DATES: Comments must be submitted onor before January 17, 1997.ADDRESSES: Tai-ming Chang (2223A) orDebby Thomas (2223A), U.S. EPA, 401M St., S.W., Washington D.C. 20460.Interested persons may obtain a copy ofthe ICR without charge by calling Tai-ming Chang at (202) 564–5081.FOR FURTHER INFORMATION CONTACT: Tai-ming Chang, (202) 564–5081, or DebbyThomas, (202) 564–5041. Fax number:(202) 564–0050.


Affected entities: Entities potentiallyaffected by this action are those whichvoluntarily choose to participate in thefull-scale Environmental LeadershipProgram.

Title: Environmental LeadershipProgram.

Abstract: The EnvironmentalProtection Agency (EPA) is developingthe Environmental Leadership Program(ELP). The ELP is a voluntary programdesigned to accomplish several goals,including better protecting theenvironment and human health by

promoting a systematic approach tomanaging environmental issues and byencouraging environmentalenhancement activities (e.g.,biodiversity, energy conservation). TheAgency also hopes to increaseidentification and timely resolution ofenvironmental compliance issues byELP participants. The Mentoringcomponent of the ELP attempts tomultiply compliance assistance effortsby incorporating industry as mentors.The overall Program should serve tofoster constructive and openrelationships between agencies, theregulated community, and the public.

The proposed framework and programrequirements as outlined below are alsoavailable for comment. As part of theapplication process for the ELP,facilities will be asked to submitinformation about their environmentalmanagement systems (EMS),compliance and EMS auditingprograms, and community outreach andemployee involvement programs.Federal facilities applying to theProgram must submit a statementaffirming they endorse the Code ofEnvironmental Management Principles.

EPA will assess each applicant’sinformation and determine whetherthey meet Program requirements. Forthose that do meet the requirements,EPA will conduct a compliancescreening and provide a 30-daycomment period to the public. A thirdparty auditor that meets ELP EMSauditor qualifications (which mayinclude EPA or State staff) will thenverify that the ELP EMS elements aremet by the applicant and that thefacility has implemented ELP EMSstandards.

Upon acceptance to the Program,facilities will be required to submitannual performance reports as a term ofparticipation. The annual performancereport should contain the followingseven sections: a boiler plate section onEMS activities; objective, goals, andmeasures for EMS; a table ofinformation on the formal audit (EMSand compliance) for years 2 and 5 of the6-year participation period; an EMSperformance evaluation (results and

measures); a table of information onagency inspections; compliance issuesand status summary for the year; otherenvironmental enhancement activities;and highlights from communityoutreach/employee involvement andmentoring programs.

The submission of information for thepurposes of application to the ELP isvoluntary. The ELP will use a disclosureand confidentiality policy that includes40 CFR Part 2 and reference to anyState-specific regulations ofconfidentiality. During the applicationprocess to ELP, the Incentives for Self-Policing: Discovery, Disclosure,Correction and Prevention of ViolationsPolicy, dated December 22, 1995(Federal Register Vol. 60, No. 246) willapply. Information submitted as part ofthe annual performance report isrequired for participation in theProgram. The annual performancereport will be made available to thepublic. An agency may not conduct orsponsor, and a person is not required torespond to, a collection of informationunless it displays a currently valid OMBcontrol number. The OMB controlnumbers for EPA’s regulations are listedin 40 CFR Part 9 and 48 CFR Chapter15.

EPA is soliciting comments to:(i) evaluate whether the proposed

collection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information will havepractical utility;

(ii) evaluate the accuracy of theagency’s estimate of the burden of theproposed collection of information,including the validity of themethodology and assumptions used;

(iii) enhance the quality, utility, andclarity of the information to becollected; and

(iv) minimize the burden of thecollection of information on those whoare to respond, including the use ofappropriate automated electronic,mechanical, or other technologicalcollection techniques or other forms ofinformation technology, e.g., permittingelectronic submission of responses.


Burden Statement: It is estimated thatapproximately 75 facilities mayvoluntarily apply to the EnvironmentalLeadership Program annually. Anestimated 72 hours will be expended toprovide EPA with data for application tothe ELP. This burden hour estimatetranslates to a cost of approximately$3,175 per facility [($21/hour×110%overhead) times 72 hours] and a totalcost to industry of approximately$238,125 ($3,175 per facility times 75facilities) in the first year of theprogram. Facilities will also need 150hours for preparing the annualperformance report. This represents anadditional cost to industry of $6,615 perfacility and a total cost to industry of$496,125. Burden means the total time,effort, or financial resources expendedby persons to generate, maintain, retain,or disclose or provide information to orfor a Federal agency. This includes thetime needed to review instructions;develop, acquire, install, and utilizetechnology and systems for the purposesof collecting, validating, and verifyinginformation, processing andmaintaining information, and disclosingand providing information; adjust theexisting ways to comply with anypreviously applicable instructions andrequirements; train personnel to be ableto respond to a collection ofinformation; search data sources;complete and review the collection ofinformation; and transmit or otherwisedisclose the information.

Dated: November 1, 1996.Elaine Stanley,Director, Office of Compliance.[FR Doc. 96–29455 Filed 11–15–96; 8:45 am]BILLING CODE 6560–50–P

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Part IV

Federal RetirementThrift InvestmentBoard5 CFR Parts 1600, 1620 and 1655Definition of Basic Pay; Thrift SavingsPlan Loans; Interim Rule


FEDERAL RETIREMENT THRIFTINVESTMENT BOARD

5 CFR Parts 1600, 1620 and 1655

Definition of Basic Pay; Thrift SavingsPlan Loans

AGENCY: Federal Retirement ThriftInvestment Board.ACTION: Interim rule with request forcomments.

SUMMARY: The Executive Director of theFederal Retirement Thrift InvestmentBoard (Board) is publishing an interimrule to implement two provisions of theThrift Savings Plan Act of 1996, and toamend the Board’s interim loanregulations to codify changes made tothe Thrift Savings Plan (TSP) loanprogram since the loan regulations werepublished in 1990. This interim ruleconforms Board regulations to thestatutory definition of ‘‘Basic pay,’’expands TSP loan eligibility, andincreases the efficiency of the TSP loanprogram.DATES: This interim rule is effectiveNovember 18, 1996. Comments must bereceived by January 17, 1997.ADDRESSES: Comments may be sent toPatrick J. Forrest, Federal RetirementThrift Investment Board, 1250 H Street,N.W., Washington, DC 20005.FOR FURTHER INFORMATION CONTACT:Patrick J. Forrest on (202) 942–1662.SUPPLEMENTARY INFORMATION: The Boardadministers the TSP, which wasestablished by the Federal Employees’Retirement System Act of 1986(FERSA), Pub. L. 99–335, 100 Stat. 514,which has been codified, as amended,largely at 5 U.S.C. 8401–8479 (1994).The TSP is a tax-deferred retirementsavings plan for Federal employees thatis similar to cash or deferredarrangements established under section401(k) of the Internal Revenue Code.

On September 30, 1996, the Presidentsigned the Thrift Savings Plan Act of1996 (the 1996 Act), Pub. L. 104–208,div. A, tit. I, sec. 101(f), § 659. Prior tothe passage of the 1996 Act, FERSAcontained a definition of ‘‘basic pay’’ at5 U.S.C. 8431. Section 206 of the 1996Act repealed 5 U.S.C. 8431 andamended 5 U.S.C. 8401(4) to providethat the term ‘‘basic pay’’ has themeaning given that term by 5 U.S.C.8331(3). The Board is amending itsregulations to conform with thisamendment.

Also prior to the passage of the 1996Act, FERSA provided at 5 U.S.C.8433(g)(2) that a TSP loan could beapproved only if the funds sought wereto be used for the purchase of a primaryresidence, for financial hardship, or for

educational or medical expenses.Section 203(a)(5)(B) of the 1996 Acteliminated this purpose test and theBoard is amending its loan regulationsto reflect this change. In addition,section 203(a)(5)(A) of the 1996 Actadds the following sentence to 5 U.S.C.8433(g)(1): ‘‘Before a loan is issued, theExecutive Director shall provide inwriting the employee or Member withappropriate information concerning thecost of the loan relative to other sourcesof financing, as well as the lifetime costof the loan, including the difference ininterest rates between the funds offeredby the Thrift Savings Fund, and anyother effect of such loan on theemployee’s or Member’s final accountbalance.’’ This interim rule amends theBoard’s loan regulations to add this newrequirement.

The Board’s interim loan regulationswere published on January 10, 1990.Since then, the Board has revised TSPloan procedures to increase theefficiency of the loan program. Thisinterim rule also codifies thoserevisions.

Regulatory Flexibility Act

I certify that these regulations will nothave a significant economic impact ona substantial number of small entitiesbecause the regulations will affect onlyemployees of the United StatesGovernment.


I certify that these regulations do notrequire additional reporting under thecriteria of the Paperwork Reduction Actof 1980.

Waiver of Notice of ProposedRulemaking and 30-Day Delay ofEffective Date

Under 5 U.S.C. 553 (b)(3)(B) and(d)(3), I find that good cause exists forwaiving the general notice of proposedrulemaking and for making theseregulations effective in less than 30days. Section 207 of the 1996 Actprovides that the 1996 Act shall takeeffect on the date of its enactment andthat its provisions are to be given effectat the earliest practicable date asdetermined by the Executive Director inregulations. The Executive Director hasdetermined that the Board can giveimmediate effect to sections 203(a)(5)and 206 of the 1996 Act; therefore, adelay in their implementation would becontrary to the 1996 Act. In addition,because the remaining provisions of thisinterim rule codify existing TSP loanprogram procedures, notice and publicprocedure on them is unnecessary.

Submission to Congress and theGeneral Accounting Office

Under section 801(a)(1)(A) of theAdministrative Procedure Act (APA), asamended by the Regulatory EnforcementFairness Act of 1996, Pub. L. 104–121,tit. II, 110 Stat. 847, 857–875 (5 U.S.C.801(a)(1)(A)), the Board submitted areport containing this rule and otherrequired information to the U.S. Senate,the U.S. House of Representatives, andthe Comptroller General of the UnitedStates prior to the publication of thisrule in today’s Federal Register. Thisrule is not a major rule as defined insection 804(2) of the APA as amended(5 U.S.C. 804(2)).

Unfunded Mandates Reform Act of1995

Pursuant to the Unfunded MandatesReform Act of 1995, Pub. L. 104–4,section 201, 109 Stat. 48, 64, the effectof this regulation on State, local, andtribal governments and on the privatesector has been assessed. Thisregulation will not compel theexpenditure in any one year of $100million or more by any State, local, ortribal governments in the aggregate or bythe private sector. Therefore, astatement under section 202, 109 Stat.48, 64–65, is not required.

List of Subjects


Government employees, Pensions,Retirement.

5 CFR Part 1655

Credit, Government employees,Pensions, Retirement.Federal Retirement Thrift Investment Board.Roger W. Mehle,Executive Director.

For the reasons set out in thepreamble, 5 CFR Chapter VI is amendedas set forth below:

PART 1600—EMPLOYEE ELECTIONSTO CONTRIBUTE TO THE THRIFTSAVINGS PLAN


Authority: 5 U.S.C. 8351, 8432(b)(1)(A),8474(b)(5) and (c)(1).

2. The definition of Basic pay in§ 1600.1 is revised to read as follows:

§ 1600.1 Definitions.

* * * * *Basic pay means basic pay as defined

in 5 U.S.C. 8331(3), and it is the rate ofpay used in computing any amount theindividual is required to contribute tothe Civil Service Retirement and


Disability Fund as a condition forparticipating in the Civil ServiceRetirement System or the FederalEmployees’ Retirement System, as thecase may be.* * * * *

PART 1620—CONTINUATION OFELIGIBILITY


Authority: 5 U.S.C. 8474 and 8432b; Pub.L. 99–591, 100 Stat. 3341; Pub. L. 100–238,101 Stat. 1744; Pub. L. 100–659, 102 Stat.3910; Pub. L. 101–508, 104 Stat. 1388; Pub.L. 104–106, 110 Stat. 186; Pub. L. 104–134,110 Stat. 1321.

§ 1620.72 [Amended]

4. Section 1620.72 is amended byrevising ‘‘8431’’ in paragraph (b)(1) toread ‘‘8331(3)’’.

§ 1620.83 [Amended]

5. Section 1620.83 is amended byrevising ‘‘8431’’ in paragraph (a) to read‘‘8331(3)’’.

PART 1655—LOAN PROGRAM

6. The authority citation for part 1655is revised to read as follows:

Authority: 5 U.S.C. 8433(g) and 8474.

7. Section 1655.1 is amended byremoving the definition of ‘‘Mid-MonthProcessing Cycle’’, by revising thedefinition of ‘‘Interim Account Balance’’and by adding, in alphabetical order,two new definitions to read as follows:

§ 1655.1 Definitions.

* * * * *Interim Account Balance means the

unvalued account balance of aparticipant’s account on the lastbusiness day of the month.* * * * *

Monthly Processing Cycle means theprocess, beginning on the evening of thefourth business day of the month, bywhich the recordkeeper allocates theamount of earnings to be credited toparticipant accounts in the Plan andauthorizes disbursements from the Plan.* * * * *

Taxable Distribution means thereporting to the Internal RevenueService as taxable income the amount ofoutstanding principal and interest on aloan upon failure by the participant torepay the loan in full according to theterms of the Loan Agreement/Promissory Note.* * * * *

8. Section 1655.2 is amended byrevising the last sentence to read asfollows:

§ 1655.2 Eligibility for loans.

* * * Persons who are eligible tocontribute to the Thrift Savings Planunder 5 CFR part 1620 are also eligibleto apply for a loan.

9. Section 1655.3 is revised to read asfollows:

§ 1655.3 Information concerning the costof the loan.

Before a loan is issued, therecordkeeper will provide theparticipant written informationconcerning the cost of the loan relativeto other sources of financing, as well asthe lifetime cost of the loan, includingthe difference in earnings rates betweenthe funds offered by the Thrift SavingsFund and any other effect of the loan onthe participant’s final account balance.


§ 1655.4 Number of loans.

A participant may have no more thantwo loans outstanding at any time. Onlyone of the two loans may be a loan forthe purchase of a primary residence.

11. Section 1655.9 is amended byrevising paragraphs (b) and (c) to readas follows:

§ 1655.9 Effect of loans on individualaccount.

* * * * *(b) The removal of the principal for

earnings allocation purposes describedin paragraph (a) of this section will beprorated according to the investment ofthe portion of the account representedby employee contributions andattributable earnings in the G Fund, theC Fund, and in the F Fund as of themost recent valuation date.

(c) Loan payments, including bothprincipal and interest, will be creditedto the individual account of theparticipant repaying the loan for themonth in which the loan payment isprocessed by the recordkeeper. The loanpayments (principal and interest) willbe credited pro rata to the G Fund, theC Fund, and the F Fund based upon theproportions of the interim accountbalances of the G Fund, the C Fund, andthe F Fund balances in the borrower’saccount on the last day of the monthprior to the month in which the loanpayment is processed. Earnings on loanpayments will be credited as describedin 5 CFR part 1645.

12. Section 1655.10 is amended byremoving paragraph (d) and by revisingparagraph (c) to read as follows:

§ 1655.10 Loan application.

* * * * *(c) The application must contain the

following information:

(1) The participant’s name, SocialSecurity number, date of birth, currentaddress, and pay cycle;

(2) A statement as to whether the loanis for the purchase of a primaryresidence as described in § 1655.20;

(3) The amount requested and theloan repayment period;

(4) Marital status of the participantand, if married, the name and addressof the participant’s spouse; and

(5) Any other information that theExecutive Director may from time totime prescribe.

13. Section 1655.11 is amended byrevising paragraph (d) to read asfollows:

§ 1655.11 Loan Agreement/PromissoryNote.

* * * * *(d) The signed Loan Agreement/

Promissory Note must be accompaniedby:

(1) A completed and signeddiscretionary payroll allotment formauthorizing deductions of all amountsdue under the Loan Agreement/Promissory Note, which deduction theparticipant agrees to maintain throughhis or her employing agency;

(2) In the case of a loan for thepurchase of a primary residence,supporting materials that document thepurchase of the residence and theamount requested. This information isdescribed in § 1655.20; and

(3) Any other information that theExecutive Director shall from time totime require.


§ 1655.12 Loan approval.(a) The application will be reviewed

by the recordkeeper and will beaccepted only if it conforms with therequirements of this part. Upon receiptof the application, the recordkeeper willdetermine whether:

(1) The participant is qualified toapply for a loan under § 1655.2 and hasprovided all required information;

(2) The participant already has themaximum number of loans outstanding,or if the application is for a residentialloan, the participant already has aresidential loan outstanding;

(3) The participant already has apending loan application;

(4) The requested loan exceeds themaximum amounts set forth in§ 1655.6(b), or is less than the minimumamount set forth in § 1655.6(a). If theloan application process date occursduring a month before the monthlyprocessing cycle, the maximum andminimum amounts will be determinedusing the interim account balance at the


end of the prior month. If the loanapplication process date occurs after themonthly processing cycle but before theend of the month, the maximum andminimum amounts will be determinedusing the most recent valued accountbalance;

(5) The applicant is covered by aretirement system that is eligible toparticipate in the Thrift Savings Plan;

(6) A CSRS participant who is marriedbut does not know the whereabouts ofhis or her spouse has been granted anexception to the spousal requirement asdescribed in § 1655.18; and

(7) The participant has received ataxable loan distribution (as describedin § 1655.13) from the Thrift SavingsPlan within the 12 consecutive monthperiod preceding the date ofapplication, except as a result of afailure to repay the loan upon theparticipant’s separation from service orconfirmed non-pay status for a periodexceeding one year.

(b) Failure by the applicant to complywith any of the requirements of this partwill result in rejection of the loanapplication.

(c) If the recordkeeper accepts theloan application, a Loan Agreement/Promissory Note will be sent to theapplicant, as provided in § 1655.11.When the completed Loan Agreement/Promissory Note is returned by theapplicant, along with documentation, ifrequired to be submitted under§§ 1655.11(d) and 1655.20, the loan willbe initially approved or denied by therecordkeeper based upon therequirements of this part, including thefollowing conditions:

(1) The participant has signed apromise to pay the loan and a statementthat the information provided to therecordkeeper is true and complete to thebest of the participant’s knowledge;

(2) Processing of the loan would notbe prohibited by § 1655.19 relating tocourt orders;

(3) A FERS participant’s spouse hasconsented to the loan or, if the spouse’swhereabouts are unknown orexceptional circumstances make itinappropriate to secure the spouse’sconsent, an exception to the spousalrequirement described in § 1655.18 hasbeen granted;

(4) The completed Loan Agreement/Promissory Note was received by therecordkeeper within 45 days of the dateit was prepared;

(5) The participant has completed andsigned a loan payment allotment form;and

(6) Any other conditions that theExecutive Director may from time totime prescribe.

(d) The loan issue date will occurwithin 60 days of the date the loan isinitially approved unless therecordkeeper determines that:

(1) A court order would prohibit theloan for the reasons described in§ 1655.19;

(2) The participant’s employingagency has reported the death,retirement, or separation of theparticipant;

(3) The participant’s account balanceon the loan issue date does not containsufficient employee contributions andrelated earnings to make the loan;

(4) The loan exceeds the maximumloan amount set forth in § 1655.6(b) asof the most recent valuation date; or

(5) The loan does not comply withany other criteria that the ExecutiveDirector may from time to timeprescribe.

(e) Loans will be issued once a month.After the loan issue date, therecordkeeper will provide informationto the United States Treasury which willpermit the Treasury to mail a check forthe principal amount of the approvedloan to the participant.

(f) A loan is considered to have beenmade to a participant on the loan issuedate.

15. Section 1655.13 is amended byrevising paragraphs (a)(1), (a)(2)(ii) and(a)(3) to read as follows:

§ 1655.13 Distributions.(a) * * *(1) A participant is in confirmed non-

pay status for a period of one year ormore and the participant has notprepaid the loan as provided in§ 1655.17;

(2) * * *(ii) 90 calendar days after the date of

the notice from the recordkeeper to theparticipant that, because his or herpayments were incorrect or missing for90 calendar days (pursuant to§ 1655.15(a)), his or her loan must bereamortized or prepaid in full or ataxable distribution will be declared;

(3) There are incorrect or missingpayments (as described in § 1655.15)and the participant fails to or isineligible to exercise one of thereamortization or repayment in fulloptions set forth in § 1655.15;* * * * *

16. Section 1655.15 is amended byrevising paragraph (b) and the fourthsentence of paragraph (c) to read asfollows:

§ 1655.15 Incorrect payments.

* * * * *(b)(1) Interest from the beginning of

the 90-day period described inparagraph (a) of this section will be

added to the outstanding loan principaland the participant will be required toreamortize the loan. Generally, areamortization schedule will becalculated to maintain the remainingnumber of payments scheduled for theloan. The recordkeeper will prepare andsend a Rider to the Loan Agreement/Promissory Note and a new payrollallotment form to the participant. Therecordkeeper must receive from theparticipant a signed Rider to the LoanAgreement/Promissory Note and anewly signed payroll allotment formwithin 45 calendar days of the date theRider is prepared. If the 45th day fallson a Saturday, Sunday, or a Federalholiday, the deadline will be the nextbusiness day.

(2) If the remaining number ofpayments would cause the loan term toextend beyond 18 years less 120 daysfrom the loan issue date for a loan forthe purchase of a primary residence, orfive years less 120 days from the loanissue date for any other loan, therecordkeeper will reamortize the loan toenable the entire amount of principaland interest to be repaid within thoselimits. The recordkeeper will prepareand send to the participant a Rider tothe Loan Agreement/Promissory Noteand a new payroll allotment form. Therecordkeeper must receive from theparticipant, within 45 calendar days ofthe date the Rider is prepared, thesigned Rider to the Loan Agreement/Promissory Note and a newly signedpayroll allotment form. If the 45th dayfalls on a Saturday, Sunday, or a Federalholiday, the deadline will be the nextbusiness day.

(3) If no reamortized payments can becalculated under this section to allowthe loan to be repaid within the timelimit described in paragraph (b)(2) ofthis section, and the participant doesnot prepay the loan in full, a taxabledistribution will be declared.

(4) If the reamortized loan principalwould exceed the maximum loanamount as calculated under § 1655.6(b),the loan will not be reamortized. Theparticipant must prepay the loan in fullor a taxable distribution will bedeclared.

(5) If a participant does not sign andreturn the Rider to the Loan Agreement/Promissory Note, and the participantdoes not prepay the loan in full, ataxable distribution will be declared.

(6) A reamortization will becalculated based on the assumption thatthe reamortization will be completed 50days after the Rider to the LoanAgreement/Promissory Note isprepared.

(c) * * * If the additional paymentswould extend the term of the loan


beyond five years from the loan issuedate (or 18 years from the loan issuedate in the case of a loan for thepurchase of a primary residence), theparticipant must either reamortize theloan so as to establish scheduledpayments that will repay the loanwithin those time periods or prepay infull the remaining unpaid amounts.* * ** * * * *

17. Section 1655.16 is amended byremoving paragraph (d) and by revisingparagraph (b) to read as follows:

§ 1655.16 Reamortization.

* * * * *(b) Before a loan can be reamortized,

the recordkeeper must receive from theparticipant, within 45 days of the datea Rider to the participant’s LoanAgreement/Promissory Note wasprepared, a signed Rider to his or herLoan Agreement/Promissory Notewhich describes the estimated termsand conditions of the reamortized loanand a newly signed payroll allotmentform. If the 45th day falls on a Saturday,Sunday, or Federal holiday, thedeadline will be the next business day.* * * * *

18. Section 1655.17 is amended byrevising the last sentence of paragraph(a) and the first sentence of paragraph(b) to read as follows:

§ 1655.17 Prepayment.(a) * * * Prepayment in full means

receipt by the recordkeeper of paymentof all principal and interest due in theform of a certified or cashier’s check, acertified or treasurer’s draft from acredit union, or a money order.

(b) If a participant returns a loancheck to the recordkeeper in order torepay his or her loan, it will be treatedas a prepayment in full. * * *


§ 1655.18 Spousal rights.(a) Within seven calendar days of a

CSRS participant’s loan applicationprocess date, the recordkeeper will senda notice to the participant’s currentspouse that the participant has appliedfor a loan.

(b) As a condition for approval of theLoan Agreement/Promissory Note for aFERS participant, the participant mustprovide the recordkeeper with anyevidence the Board requires todemonstrate that the current spouse hasconsented to the loan for which theparticipant has applied.

(c) A CSRS participant may obtain awaiver of the spousal requirementdescribed in paragraph (a) of thissection if the participant establishes, tothe satisfaction of the ExecutiveDirector, that the spouse’s whereaboutsare unknown.

(d) A FERS participant may obtain awaiver of the spousal requirementdescribed in paragraph (b) of this

section if the participant establishes, tothe satisfaction of the Executive Directorthat:

(1) The spouse’s whereabouts areunknown; or

(2) Exceptional circumstances preventthe obtaining of consent.

(e) The procedures for obtaining anexception to the spousal requirements(including the definition of exceptionalcircumstances) described in paragraphs(c) and (d) of this section will be thesame as the procedures described in 5CFR part 1650.


§ 1655.19 Court orders.

Upon receipt of a document thatpurports to be a qualifying retirementbenefits court order or qualifying legalprocess relating to a participant’s legalobligations to provide child support ormake alimony payments, theparticipant’s TSP account will befrozen. After the account is frozen, noloan will be allowed until the accountis unfrozen. The Board’s procedures forprocessing retirement benefits courtorders and legal processes are explainedin 5 CFR part 1653.

§§ 1655.21 through 1655.24 [Removed]

21. Sections 1655.21 through 1655.24are removed.


fede

ral r

egiste

r

58759


Part V

The PresidentProclamation 6955—To Provide Duty-FreeTreatment to Products of the West Bankand the Gaza Strip and QualifyingIndustrial Zones

Presidential Documents

58761

Federal Register

Vol. 61, No. 223


Title 3—

The President

Proclamation 6955 of November 13, 1996

To Provide Duty-Free Treatment to Products of the WestBank and the Gaza Strip and Qualifying Industrial Zones

By the President of the United States of America

A Proclamation

1. Section 9(a) of the United States-Israel Free Trade Area ImplementationAct of 1985, as amended (the ‘‘Act’’) (19 U.S.C. 2112 note), authorizesthe President to proclaim elimination or modification of any existing dutyunder certain conditions as the President determines is necessary to exemptany article of the West Bank or Gaza Strip or a qualifying industrial zonefrom duty.

2. Section 9(c) of the Act authorizes the President to proclaim that articlesof Israel may be treated as though they were articles directly shipped fromIsrael for the purposes of the U.S.-Israel Free Trade Agreement (the ‘‘Agree-ment’’) even if shipped to the United States from the West Bank, the GazaStrip, or a qualifying industrial zone, if the articles otherwise meet therequirements of the Agreement.

3. Section 9(d) of the Act authorizes the President to proclaim that thecost or value of materials produced in the West Bank, the Gaza Strip,or a qualifying industrial zone may be included in the cost or value ofmaterials produced in Israel under section 1(c)(i) of Annex 3 of the Agree-ment, and the direct costs of processing operations performed in the WestBank, the Gaza Strip, or a qualifying industrial zone may be included inthe direct costs of processing operations performed in Israel under section1(c)(ii) of Annex 3 of the Agreement.

4. Section 9(e) of the Act authorizes the President to specify areas thatconstitute qualifying industrial zones for purposes of the Act.

5. Pursuant to section 9(a) of the Act, I have determined that the HarmonizedTariff Schedule of the United States (HTS) should be modified to provideduty-free entry to qualifying articles that are the product of the West Bankor Gaza Strip or a qualifying industrial zone and are entered in accordancewith the provisions of section 9 of the Act.

6. I have decided that articles of Israel may be treated as though theywere articles directly shipped from Israel for the purposes of the Agreementeven if shipped to the United States from the West Bank, the Gaza Strip,or a qualifying industrial zone, if the articles otherwise meet the requirementsof the Agreement.

7. I have decided that the cost or value of materials produced in the WestBank, the Gaza Strip, or a qualifying industrial zone may be included inthe cost or value of materials produced in Israel under section 1(c)(i) ofAnnex 3 of the Agreement, and the direct costs of processing operationsperformed in the West Bank, the Gaza Strip, or a qualifying industrialzone may be included in the direct costs of processing operations performedin Israel under section 1(c)(ii) of Annex 3 of the Agreement.

8. Section 604 of the Trade Act of 1974 (19 U.S.C. 2483) authorizes thePresident to embody in the HTS the substance of the provisions of thatAct, and of other acts affecting import treatment, and actions thereunder.

58762 Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Presidential Documents

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United Statesof America, acting under the authority vested in me by the Constitutionand the laws of the United States, including but not limited to section301 of title 3, United States Code, section 9 of the Act (19 U.S.C. 2112note), and section 604 of the Trade Act of 1974 (19 U.S.C. 2483), do proclaimthat:

(1) In order to provide the tariff treatment being accorded under theAct, the HTS is modified as set forth in the Annex to this proclamation.

(2) I delegate to the United States Trade Representative the powers grantedto me in section 9(e) of the Act to specify through notice in the FederalRegister areas constituting qualifying industrial zones.

(3) The modifications to the HTS made by the Annex shall be effectivewith respect to goods entered, or withdrawn from warehouse for consump-tion, on and after the third day after the date of publication of this proclama-tion in the Federal Register.

(4) All provisions of previous proclamations and Executive orders thatare inconsistent with the actions taken in this proclamation are supersededto the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth dayof November, in the year of our Lord nineteen hundred and ninety-six,and of the Independence of the United States of America the two hundredand twenty-first.

œ–Billing code 3195–01–P

58763Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Presidential Documents

58764 Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Presidential Documents

58765Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Presidential Documents

[FR Doc. 96–29613

Filed 11–15–96; 8:45 am]

Billing code 3190–01–C

i

Reader Aids Federal Register

Vol. 61, No. 223


CUSTOMER SERVICE AND INFORMATION

Federal Register/Code of Federal RegulationsGeneral Information, indexes and other finding

aids202–523–5227

LawsFor additional information 523–5227

Presidential DocumentsExecutive orders and proclamations 523–5227The United States Government Manual 523–5227

Other ServicesElectronic and on-line services (voice) 523–4534Privacy Act Compilation 523–3187TDD for the hearing impaired 523–5229

ELECTRONIC BULLETIN BOARD

Free Electronic Bulletin Board service for Public Law numbers,Federal Register finding aids, and list of documents on publicinspection. 202–275–0920

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You may access our Fax-On-Demand service. You only need a faxmachine and there is no charge for the service except for longdistance telephone charges the user may incur. The list ofdocuments on public inspection and the daily Federal Register’stable of contents are available using this service. The documentnumbers are 7050-Public Inspection list and 7051-Table ofContents list. The public inspection list will be updatedimmediately for documents filed on an emergency basis.

NOTE: YOU WILL ONLY GET A LISTING OF DOCUMENTS ONFILE AND NOT THE ACTUAL DOCUMENT. Documents onpublic inspection may be viewed and copied in our office locatedat 800 North Capitol Street, N.W., Suite 700. The Fax-On-Demandtelephone number is: 301–713–6905

FEDERAL REGISTER PAGES AND DATES, NOVEMBER

56397–56622......................... 156623–56876......................... 456877–57280......................... 557281–57576......................... 657577–57766......................... 757567–57986......................... 857987–58130.........................1258131–58310.........................1358311–58456.........................1458457–58622.........................1558623–58766.........................18

CFR PARTS AFFECTED DURING NOVEMBER

At the end of each month, the Office of the Federal Registerpublishes separately a List of CFR Sections Affected (LSA), whichlists parts and sections affected by documents published sincethe revision date of each title.

3 CFRProclamations:6949.................................563976950.................................568736951.................................581296952.................................583116953.................................583136954.................................584556955.................................58761Executive Orders:199–A (Superseded in

part by EO13022) ..........................56875

8682 (Superseded inpart by EO13022) ..........................56875



11593 (See EO13022) ..........................56875

12015 (Amended by13024) ..........................58125

12992 (Amended byEO 13023)....................57767

12996 (See EO13022) ..........................56875

13010 (Amended byEO 13025)....................00000

13022...............................5687513023...............................5776713024...............................5812513025...............................00000Administrative Orders:Presidential

Determinations:No. 96–53 of

September 26,1996 .............................56859

No. 96–55 ofSeptember 30,1996 .............................56861

No. 96–56 ofSeptember 30,1996 .............................56863

No. 96–57 ofSeptember 30,1996 .............................56865

No. 96–58 ofSeptember 30,1996 .............................56857

No. 96–59 ofSeptember 30,1996 .............................56859

Notices:Notice of November

12, 1996 .......................58309

5 CFRCh. XLII............................57281

Ch. LVII............................56399831...................................58457842...................................58457846...................................58457870...................................58457871...................................58457872...................................58457873...................................58457890...................................584571600.................................587541620.................................587541655.................................58754Proposed Rules:1605.................................56904

7 CFR1.......................................57577271...................................58281272...................................58281273...................................58281301.......................56403, 57987457.......................57577, 57583Proposed Rules:20.....................................5834358.....................................58345400...................................57595932...................................57782944...................................577821728.................................57788

8 CFR

103...................................57583

9 CFR

53.....................................5687771.....................................5687778.....................................5862582.....................................5687792.....................................5687794.....................................5687797.....................................58626161...................................56877Proposed Rules:Ch. III ...............................58664304...................................57790308...................................57790310...................................57790318...................................57791320...................................57790327...................................57790381...................................57790416...................................57790417...................................57790

10 CFR

2.......................................5662313.....................................56623Proposed Rules:33.....................................58346430.......................56918, 57794

11 CFR

104...................................58460

ii Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Reader Aids

12 CFR

215...................................57769218...................................57287225...................................56404250...................................57287263...................................56407308...................................57987747...................................57290Proposed Rules:215...................................57797960...................................57799

14 CFR

21.....................................5700225.........................56408, 5794639 ...........57291, 57295, 57296,

57298, 57299, 57300, 57301,57304, 57311, 57313, 57315,57317, 57319, 57322, 57232,57993, 57994, 58315, 58316,

58318, 58323, 5832671 ...........56623, 56624, 57324,

57771, 57772, 5813197 ...........57003, 57998, 57999,

58000121...................................57585382...................................56409Proposed Rules:25.....................................5866539 ...........56640, 56642, 56919,

56921, 56923, 56925, 57342,57830, 57832, 58012, 58014,58016, 58145, 58147, 58148,58353, 58355, 58356, 58667,

5866971 ...........56479, 56480, 56644,

5815073.....................................56927382...................................56481

15 CFR

902...................................56425990...................................581312301.................................57966

17 CFR

3.......................................58627200...................................56891201...................................57773Proposed Rules:300...................................56485

18 CFR

11.....................................58461365...................................57325375...................................57325Proposed Rules:1301.................................58018

19 CFR

Proposed Rules:10.....................................5664518.....................................56645114...................................56645

21 CFR

50.....................................57278176...................................58628178...................................56892312...................................57278328...................................58629333...................................58471510.......................58630, 58631520...................................56892530...................................57732

556...................................56892558...................................58631610...................................57328812...................................572781308.................................56893Proposed Rules:101...................................58151

22 CFR

41.....................................56438121...................................56894601...................................58327

23 CFR

640...................................57330

24 CFR

245...................................579603500.....................56624, 58472

25 CFR

309...................................57002

26 CFR

40.....................................5800448.....................................5800449.....................................58004301...................................58004601...................................58004602...................................58004Proposed Rules:1 ..............56647, 58020, 58152

27 CFR

Proposed Rules:4.......................................569285...........................56928, 575977...........................56928, 5759719.....................................5692820.....................................5692822.....................................5692824.....................................5692825.....................................5692827.....................................5692870.....................................56928250...................................56928251...................................56928

28 CFR

540...................................57568

29 CFR

0.......................................572811910.................................567461915.................................567461926.................................567464044.................................58479Proposed Rules:1952.................................58358

30 CFR

Proposed Rules:943...................................56648

31 CFR

560...................................58480Proposed Rules:225...................................58493

32 CFR

92.....................................56896176...................................56896644...................................58133706...................................58009Proposed Rules:199...................................56929

33 CFR

117...................................57585Proposed Rules:117...................................57599165...................................57599187...................................58359404...................................58496407...................................58496

36 CFR

Proposed Rules:223...................................58281

37 CFR

1.......................................564392.......................................564395.......................................5643910.....................................56439Proposed Rules:202...................................58497

38 CFR

2.......................................564483...........................56626, 5758617.....................................5689736.....................................5644942.....................................56449Proposed Rules:17.....................................56486

39 CFR

233...................................56450

40 CFR

52 ...........56461, 56470, 56472,56474, 56627, 56629, 56897,57331, 57775, 58133, 58281,

58481, 5848269.....................................5815870.........................56631, 5758979.....................................5874480.........................58304, 5874481.........................58482, 5848786.........................58102, 5861889.....................................5810290.....................................58296180.......................58135, 58331261...................................57334266...................................56631300 ..........56477, 57594, 58332455...................................57518Proposed Rules:51.....................................5849752 ...........56491, 56492, 56649,

56650, 56930, 57343, 57834,58498, 58671

63.....................................5760269.....................................5815881.....................................5849882.....................................5649385.....................................5802286.....................................5802889.....................................58028132...................................58444152...................................57356156...................................57356180...................................57356194...................................58499247...................................57748300...................................56931437...................................56650

41 CFR

105–735...........................56399

42 CFR

50.....................................56631413...................................58631431...................................58140Proposed Rules:121...................................58158

43 CFR

Proposed Rules:1600.................................581601820.................................581601840.................................581601850.................................581601860.................................581601880.................................581602090.....................56496, 581602200.................................581602300.................................581602520.................................581602540.................................581602560.................................581602620.....................58160, 585002720.................................581602800.....................57605, 581602810.................................581602880.................................581602910.................................581602920.....................57605, 581603000.................................581603100.....................56651, 581603120.................................581603150.................................581603160.................................581603180.................................581603200.................................581603240.................................581603250.................................581603260.................................581603280.................................581603410.................................581603420.................................581603430.................................581603450.................................581603470.................................581603480.................................581603500.................................581603510.................................581603520.................................581603530.................................581603540.................................581603550.................................581603560.................................581603590.................................581603710.................................581603730.................................581603740.................................581603800.................................581603810.................................581603820.................................578373830.................................581603870.................................581604100.................................576054200.................................581604300 ........56497, 57605, 581604700.....................57605, 581605000.................................581605040.................................585015460.................................576055470.................................581605510.....................57605, 581606400.................................566518200.................................576058340.................................576058350.................................576058360.................................576058370.................................58160

iiiFederal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Reader Aids

8570.................................576059180.................................581609210.................................576059230.................................581609260.................................57605

44 CFR

64.....................................57572

45 CFR

205...................................581401301.................................571861303.................................571861304.................................571861305.................................571861306.................................571861308.................................571861355.................................586321356.................................586321357.................................58632

46 CFR

14.....................................5663228.....................................57268150...................................58143221...................................56900295...................................58663

Proposed Rules:67.....................................58359586...................................58160

47 CFR

1.......................................5733422.....................................5833373 ............57335, 57336, 5834080.....................................5801087.....................................58010Proposed Rules:73 ...........57359, 57360, 58360,

58361

48 CFR

212...................................58488225.......................58488, 58489231...................................58490252...................................584881501.................................573361503.................................573361509.................................573361510.................................573361511.................................573361512.................................573361513.................................573361516.................................573361519.................................57336

1527.................................573361532.................................573361533.................................573361535.................................573361542.................................573361552.................................573369904.................................58011Proposed Rules:1.......................................576222.......................................576226.......................................5862214.....................................5762215.........................57622, 5862231.....................................5845236.....................................5762242.....................................5845252.........................57622, 5862253.....................................576221552.................................57623

49 CFR

27.....................................564091011.................................573391104.....................57339, 584901111.....................57339, 584901112.....................57339, 584901113.................................573391114.................................57339

1115.....................57339, 584901121.....................57339, 58490Proposed Rules:383...................................56936391...................................56936395...................................57252571 ..........56652, 58362, 585041310.................................56652

50 CFR

285.......................57340, 58341600...................................57843648...................................58461679 .........56425, 56477, 57340,

57341, 58491Proposed Rules:17.....................................5650136.....................................56502285...................................57361300...................................57625630...................................57361644...................................57361648 ..........56902, 58365, 58508660...................................56902678...................................57361679 ..........56902, 57780, 57781

iv Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Reader Aids

REMINDERSThe items in this list wereeditorially compiled as an aidto Federal Register users.Inclusion or exclusion fromthis list has no legalsignificance.

RULES GOING INTOEFFECT TODAY

AGRICULTUREDEPARTMENTAnimal and Plant HealthInspection ServiceInterstate transportion of

animals and animal products(quarantine):Brucellosis in cattle and

bison--State and area

classifications; published11-18-96

Overtime services relating toimports and exports:Commuted traveltime

allowances; published 11-18-96

COMMODITY FUTURESTRADING COMMISSIONCommodity Exchange Act:

Interpretative statement(Section 8a) amended;publication; published 11-18-96

ENVIRONMENTALPROTECTION AGENCYAir quality implementation

plans; approval andpromulgation; variousStates:Florida; published 9-18-96

Hazardous waste programauthorizations:New Mexico; published 9-

19-96FEDERALCOMMUNICATIONSCOMMISSIONRadio services, special:

Interactive video and dataservice; published 9-18-96

Radio stations; table ofassignments:California; published 10-15-

96Pennsylvania; published 10-

15-96FEDERAL RETIREMENTTHRIFT INVESTMENTBOARDThrift savings plan:

Basic pay definition andThrift Savings Plan loanprogram amendments;published 11-18-96

HEALTH AND HUMANSERVICES DEPARTMENTFood and DrugAdministrationAnimal drugs, feeds, and

related products:

Sponsor name and addresschanges--Alstoe, Ltd., Animal

Health; published 11-18-96

Biological products:Distributor name prominence

on labels; published 11-6-96

Food additives:Paper and paperboard

components--Acrylic acid, sodium salt

copolymer withpolyethyleneglycol allylether; published 11-18-96

HOUSING AND URBANDEVELOPMENTDEPARTMENTAnnual income definition;

exclusions; published 10-18-96

INTERIOR DEPARTMENTFish and Wildlife ServiceEndangered and threatened

species:Stebbins’ morning-glory etc.

(five plants from CentralSierran foothills, CA);published 10-18-96

INTERIOR DEPARTMENTNational Park ServiceNational Park System:

Alaska visitor serviceauthorizations; published10-18-96

JUSTICE DEPARTMENTParole CommissionFederal prisoners; paroling

and releasing, etc.:Transfer treaty cases;

special transfereehearings; published 10-17-96

LABOR DEPARTMENTMine Safety and HealthAdministrationMetal mine safety and health:

Workplace examinations;program policy; published8-19-96

SECURITIES ANDEXCHANGE COMMISSIONSecurities:

Significant businessacquisiions; disclosurerequirements streamliningand quarterly reportingrequirementsestablishment forunregistered equity sales;published 10-18-96

Streamlining disclosurerequirements relating tosignificant businessacquisitions; published 10-18-96

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Pratt & Whitney; published9-17-96

COMMENTS DUE NEXTWEEK

AGRICULTUREDEPARTMENTAgricultural MarketingServiceGrapes and plums, exported;

comments due by 11-18-96;published 10-17-96

Oranges and grapefruit grownin Texas; comments due by11-18-96; published 9-18-96

AGRICULTUREDEPARTMENTAnimal and Plant HealthInspection ServiceInspection and certification of

animal byproducts:Inedible animal byproducts

references replaced byanimal productsreferences; comments dueby 11-18-96; published 9-19-96

Plant-related quarantine,domestic:Interstate movement of

imported plants and plantparts; comments due by11-18-96; published 10-2-96

AGRICULTUREDEPARTMENTFederal Crop InsuranceCorporationCrop insurance regulations:

Group risk plan ofinsurance; comments dueby 11-22-96; published10-8-96

COMMERCE DEPARTMENTEconomic Analysis BureauInternational services surveys:

Foreign direct investmentsin U.S.--BE-20; selected services

transactions withunaffiliated foreignpersons; comments dueby 11-18-96; published10-17-96

COMMERCE DEPARTMENTNational Oceanic andAtmospheric AdministrationFishery conservation and

management:Alaska; fisheries of

Exclusive Economic Zone--Alaska scallop; comments

due by 11-18-96;published 11-6-96

Tanner crab; commentsdue by 11-19-96;published 11-8-96

Northeast multispecies,Atlantic sea scallop, andAmerican lobster;comments due by 11-18-96; published 10-9-96

West Coast States andWestern Pacific fisheries--Pacific Coast groundfish;

comments due by 11-20-96; published 11-5-96

COMMERCE DEPARTMENTPatent and Trademark OfficePatent cases:

Practice and procedure;Federal regulatory review;comments due by 11-22-96; published 9-23-96

DEFENSE DEPARTMENTFederal Acquisition Regulation

(FAR):Competitive range

determinations; commentsdue by 11-19-96;published 10-9-96

Contracting by negotiation;Phase I rewrite;comments due by 11-19-96; published 10-9-96

ENVIRONMENTALPROTECTION AGENCYAir quality implementation

plans; approval andpromulgation; variousStates:California; comments due by

11-22-96; published 10-23-96

Colorado; comments due by11-22-96; published 9-23-96

Louisiana; comments due by11-21-96; published 10-22-96

Montana; comments due by11-22-96; published 10-23-96

New Jersey et al.;comments due by 11-22-96; published 10-23-96

West Virginia; commentsdue by 11-21-96;published 10-22-96

Hazardous waste programauthorizations:Ohio; comments due by 11-

22-96; published 10-23-96Water pollution control:

Great Lakes System; waterquality guidance;polychlorinated biphenylcriteria for human healthand wildlife; commentsdue by 11-21-96;published 10-22-96

Water Pollution Control:Ocean dumping; site

designations--San Francisco, CA;

comments due by 11-

vFederal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Reader Aids

18-96; published 10-17-96

FEDERALCOMMUNICATIONSCOMMISSIONRadio services, special:

Private land mobileservices--200-222 MHz band;

finder’s preferenceprogram; comments dueby 11-18-96; published10-4-96

Television broadcasting:Advanced television (ATV)

systems; digital televisionservice; comments due by11-22-96; published 8-21-96

FEDERAL DEPOSITINSURANCE CORPORATIONFair housing:

Equal Housing Lender andOpportunity posters;placement and display;comments due by 11-19-96; published 9-20-96

GENERAL SERVICESADMINISTRATIONFederal Acquisition Regulation




HEALTH AND HUMANSERVICES DEPARTMENTFood and DrugAdministrationNational Environmental Policy

Act; implementation; Federalregulatory review; commentsdue by 11-21-96; published10-22-96

INDIAN ARTS AND CRAFTSBOARDIndian art and craftsmanship;

product protection;comments due by 11-20-96;published 10-21-96

INTERIOR DEPARTMENTLand Management BureauAppeal and hearing

procedures; revisions;comments due by 11-18-96;published 10-17-96

Land resource management:

Withdrawals--Alaska; National

Petroleum Reserve;comments due by 11-22-96; published 10-23-96

INTERIOR DEPARTMENTTransportation and utility

systems in and across, andaccess into, conservationsystem units in Alaska:Economically feasible and

prudent alternative route;definition; comments dueby 11-18-96; published 9-17-96

INTERIOR DEPARTMENTMinerals ManagementServiceRoyalty management:

Natural gas from Indianleases; valuation;comments due by 11-22-96; published 9-23-96

INTERIOR DEPARTMENTSurface Mining Reclamationand Enforcement OfficePermanent program and

abandoned mine landreclamation plansubmissions:Ohio; comments due by 11-

18-96; published 10-18-96JUSTICE DEPARTMENTDrug EnforcementAdministrationManufacturers, distributors,

and dispensers of controlledsubstances; registration,etc.:Controlled substances to

ocean vessels, guidelinesfor providing; commentsdue by 11-18-96;published 9-18-96

JUSTICE DEPARTMENTPrivacy Act; implementation;

comments due by 11-18-96;published 10-17-96

NATIONAL AERONAUTICSAND SPACEADMINISTRATIONFederal Acquisition Regulation




NATIONAL CREDIT UNIONADMINISTRATIONCredit unions:

Investment and depositactivities; comments dueby 11-18-96; published 8-12-96

OFFICE OF MANAGEMENTAND BUDGETManagement and BudgetOfficeNational security information;

classification, downgrading,declassification, andsafeguarding; comments dueby 11-18-96; published 9-17-96

RAILROAD RETIREMENTBOARDProgram Fraud Civil Remedies

Act of 1986:Civil monetary penalties;

adjustment; commentsdue by 11-21-96;published 10-22-96

SECURITIES ANDEXCHANGE COMMISSIONInvestment companies:

Multiple class and seriesinvestment companies;comments due by 11-18-96; published 9-17-96

Securities:Securities Investor

Protection Corporation;contracts closeout andcompletion for purchaseor sale of securities madeby debtors in liquidationunder Securities Investor Protection

Act; comments due by11-22-96; published 11-1-96

STATE DEPARTMENTPrivacy Act:

Implementation; commentsdue by 11-19-96;published 10-10-96

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Boeing; comments due by11-18-96; published 9-17-96

Burkhart Grob Luft-undRaumfahrt; comments dueby 11-19-96; published 9-19-96

Day-Ray Products, Inc.;comments due by 11-18-96; published 10-7-96

Jetstream; comments dueby 11-19-96; published10-31-96

Raytheon; comments due by11-20-96; published 9-30-96

Weatherly Aviation Co., Inc.;comments due by 11-18-96; published 9-18-96

Airworthiness standards andair certification andoperations:

Transport category airplanesand supplemental aircarriers and commercialoperators of large aircraft;comments due by 11-21-96; published 7-24-96

TRANSPORTATIONDEPARTMENT

Federal HighwayAdministration

Motor carrier safety andhazardous materialsadministration:

Proceedings, investigations,and disqualifications andpenalties; practice rules;comments due by 11-20-96; published 10-21-96


Research and SpecialPrograms Administration

Rulemaking petitions:

Barbecue IndustryAssociation; propanecylinders filling; commentsdue by 11-21-96;published 8-23-96


Surface TransportationBoard

Tariffs and schedules:

Railroad contracts;comments due by 11-18-96; published 10-17-96

TREASURY DEPARTMENT

Internal Revenue Service

Estate and gift taxes:

Interests and powersdisclaimer; comments dueby 11-19-96; published 8-21-96

vi Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Reader Aids

CFR CHECKLIST

This checklist, prepared by the Office of the Federal Register, ispublished weekly. It is arranged in the order of CFR titles, stocknumbers, prices, and revision dates.An asterisk (*) precedes each entry that has been issued since lastweek and which is now available for sale at the Government PrintingOffice.A checklist of current CFR volumes comprising a complete CFR set,also appears in the latest issue of the LSA (List of CFR SectionsAffected), which is revised monthly.The annual rate for subscription to all revised volumes is $883.00domestic, $220.75 additional for foreign mailing.Mail orders to the Superintendent of Documents, Attn: New Orders,P.O. Box 371954, Pittsburgh, PA 15250–7954. All orders must beaccompanied by remittance (check, money order, GPO DepositAccount, VISA, or Master Card). Charge orders may be telephonedto the GPO Order Desk, Monday through Friday, at (202) 512–1800from 8:00 a.m. to 4:00 p.m. eastern time, or FAX your charge ordersto (202) 512-2250.Title Stock Number Price Revision Date

1, 2 (2 Reserved) ......... (869–028–00001–1) ...... $4.25 Feb. 1, 19963 (1995 Compilation

and Parts 100 and101) .......................... (869–028–00002–9) ...... 22.00 1 Jan. 1, 1996

4 .................................. (869–028–00003–7) ...... 5.50 Jan. 1, 19965 Parts:1–699 ........................... (869–028–00004–5) ...... 26.00 Jan. 1, 1996700–1199 ...................... (869–028–00005–3) ...... 20.00 Jan. 1, 19961200–End, 6 (6

Reserved) ................. (869–028–00006–1) ...... 25.00 Jan. 1, 19967 Parts:0–26 ............................. (869–028–00007–0) ...... 22.00 Jan. 1, 199627–45 ........................... (869–028–00008–8) ...... 11.00 Jan. 1, 199646–51 ........................... (869–028–00009–6) ...... 13.00 Jan. 1, 199652 ................................ (869–028–00010–0) ...... 5.00 Jan. 1, 199653–209 .......................... (869–028–00011–8) ...... 17.00 Jan. 1, 1996210–299 ........................ (869–028–00012–6) ...... 35.00 Jan. 1, 1996300–399 ........................ (869–028–00013–4) ...... 17.00 Jan. 1, 1996400–699 ........................ (869–028–00014–2) ...... 22.00 Jan. 1, 1996700–899 ........................ (869–028–00015–1) ...... 25.00 Jan. 1, 1996900–999 ........................ (869–028–00016–9) ...... 30.00 Jan. 1, 19961000–1199 .................... (869–028–00017–7) ...... 35.00 Jan. 1, 19961200–1499 .................... (869–028–00018–5) ...... 29.00 Jan. 1, 19961500–1899 .................... (869–028–00019–3) ...... 41.00 Jan. 1, 19961900–1939 .................... (869–028–00020–7) ...... 16.00 Jan. 1, 19961940–1949 .................... (869–028–00021–5) ...... 31.00 Jan. 1, 19961950–1999 .................... (869–028–00022–3) ...... 39.00 Jan. 1, 19962000–End ...................... (869–028–00023–1) ...... 15.00 Jan. 1, 19968 .................................. (869–028–00024–0) ...... 23.00 Jan. 1, 19969 Parts:1–199 ........................... (869–028–00025–8) ...... 30.00 Jan. 1, 1996200–End ....................... (869–028–00026–6) ...... 25.00 Jan. 1, 199610 Parts:0–50 ............................. (869–028–00027–4) ...... 30.00 Jan. 1, 199651–199 .......................... (869–028–00028–2) ...... 24.00 Jan. 1, 1996200–399 ........................ (869–028–00029–1) ...... 5.00 Jan. 1, 1996400–499 ........................ (869–028–00030–4) ...... 21.00 Jan. 1, 1996500–End ....................... (869–028–00031–2) ...... 34.00 Jan. 1, 199611 ................................ (869–028–00032–1) ...... 15.00 Jan. 1, 199612 Parts:1–199 ........................... (869–028–00033–9) ...... 12.00 Jan. 1, 1996200–219 ........................ (869–028–00034–7) ...... 17.00 Jan. 1, 1996220–299 ........................ (869–028–00035–5) ...... 29.00 Jan. 1, 1996300–499 ........................ (869–028–00036–3) ...... 21.00 Jan. 1, 1996500–599 ........................ (869–028–00037–1) ...... 20.00 Jan. 1, 1996600–End ....................... (869–028–00038–0) ...... 31.00 Jan. 1, 199613 ................................ (869–028–00039–8) ...... 18.00 Mar. 1, 199614 Parts:1–59 ............................. (869–028–00040–1) ...... 34.00 Jan. 1, 1996

Title Stock Number Price Revision Date

60–139 .......................... (869–028–00041–0) ...... 30.00 Jan. 1, 1996140–199 ........................ (869–028–00042–8) ...... 13.00 Jan. 1, 1996200–1199 ...................... (869–028–00043–6) ...... 23.00 Jan. 1, 19961200–End ...................... (869–028–00044–4) ...... 16.00 Jan. 1, 1996

15 Parts:0–299 ........................... (869–028–00045–2) ...... 16.00 Jan. 1, 1996300–799 ........................ (869–028–00046–1) ...... 26.00 Jan. 1, 1996800–End ....................... (869–028–00047–9) ...... 18.00 Jan. 1, 1996

16 Parts:0–149 ........................... (869–028–00048–7) ...... 6.50 Jan. 1, 1996150–999 ........................ (869–028–00049–5) ...... 19.00 Jan. 1, 19961000–End ...................... (869–028–00050–9) ...... 26.00 Jan. 1, 1996

17 Parts:1–199 ........................... (869–028–00052–5) ...... 21.00 Apr. 1, 1996200–239 ........................ (869–028–00053–3) ...... 25.00 Apr. 1, 1996240–End ....................... (869–028–00054–1) ...... 31.00 Apr. 1, 1996

18 Parts:1–149 ........................... (869–028–00055–0) ...... 17.00 Apr. 1, 1996150–279 ........................ (869–028–00056–8) ...... 12.00 Apr. 1, 1996280–399 ........................ (869–028–00057–6) ...... 13.00 Apr. 1, 1996400–End ....................... (869–028–00058–4) ...... 11.00 Apr. 1, 1996



21 Parts:1–99 ............................. (869–028–00065–7) ...... 16.00 Apr. 1, 1996100–169 ........................ (869–028–00066–5) ...... 22.00 Apr. 1, 1996170–199 ........................ (869–028–00067–3) ...... 29.00 Apr. 1, 1996200–299 ........................ (869–028–00068–1) ...... 7.00 Apr. 1, 1996300–499 ........................ (869–028–00069–0) ...... 50.00 Apr. 1, 1996500–599 ........................ (869–028–00070–3) ...... 28.00 Apr. 1, 1996600–799 ........................ (869–028–00071–1) ...... 8.50 Apr. 1, 1996800–1299 ...................... (869–028–00072–0) ...... 30.00 Apr. 1, 19961300–End ...................... (869–028–00073–8) ...... 14.00 Apr. 1, 1996

22 Parts:1–299 ........................... (869–028–00074–6) ...... 36.00 Apr. 1, 1996300–End ....................... (869–028–00075–4) ...... 24.00 Apr. 1, 1996

23 ................................ (869–028–00076–2) ...... 21.00 Apr. 1, 1996

24 Parts:0–199 ........................... (869–028–00077–1) ...... 30.00 May 1, 1996200–219 ........................ (869–028–00078–9) ...... 14.00 May 1, 1996220–499 ........................ (869–028–00079–7) ...... 13.00 May 1, 1996500–699 ........................ (869–028–00080–1) ...... 14.00 May 1, 1996700–899 ........................ (869–028–00081–9) ...... 13.00 May 1, 1996900–1699 ...................... (869–028–00082–7) ...... 21.00 May 1, 19961700–End ...................... (869–028–00083–5) ...... 14.00 May 1, 1996

25 ................................ (869–028–00084–3) ...... 32.00 May 1, 1996

26 Parts:§§ 1.0-1–1.60 ................ (869–028–00085–1) ...... 21.00 Apr. 1, 1996§§ 1.61–1.169 ................ (869–028–00086–0) ...... 34.00 Apr. 1, 1996§§ 1.170–1.300 .............. (869–028–00087–8) ...... 24.00 Apr. 1, 1996§§ 1.301–1.400 .............. (869–028–00088–6) ...... 17.00 Apr. 1, 1996§§ 1.401–1.440 .............. (869–028–00089–4) ...... 31.00 Apr. 1, 1996§§ 1.441-1.500 .............. (869-028-00090-8) ...... 22.00 Apr. 1, 1996§§ 1.501–1.640 .............. (869–028–00091–6) ...... 21.00 Apr. 1, 1996§§ 1.641–1.850 .............. (869–028–00092–4) ...... 25.00 Apr. 1, 1996§§ 1.851–1.907 .............. (869–028–00093–2) ...... 26.00 Apr. 1, 1996§§ 1.908–1.1000 ............ (869–028–00094–1) ...... 26.00 Apr. 1, 1996§§ 1.1001–1.1400 .......... (869–028–00095–9) ...... 26.00 Apr. 1, 1996§§ 1.1401–End .............. (869–028–00096–7) ...... 35.00 Apr. 1, 19962–29 ............................. (869–028–00097–5) ...... 28.00 Apr. 1, 199630–39 ........................... (869–028–00098–3) ...... 20.00 Apr. 1, 199640–49 ........................... (869–028–00099–1) ...... 13.00 Apr. 1, 199650–299 .......................... (869–028–00100–9) ...... 14.00 Apr. 1, 1996300–499 ........................ (869–028–00101–7) ...... 25.00 Apr. 1, 1996

viiFederal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Reader Aids


500–599 ........................ (869–028–00102–5) ...... 6.00 4 Apr. 1, 1990600–End ....................... (869–028–00103–3) ...... 8.00 Apr. 1, 1996

27 Parts:1–199 ........................... (869–028–00104–1) ...... 44.00 Apr. 1, 1996200–End ....................... (869–028–00105–0) ...... 13.00 Apr. 1, 1996

28 Parts: .....................1-42 ............................. (869–028–00106–8) ...... 35.00 July 1, 199643-end ......................... (869-028-00107-6) ...... 30.00 July 1, 1996

29 Parts:0–99 ............................. (869–028–00108–4) ...... 26.00 July 1, 1996100–499 ........................ (869–028–00109–2) ...... 12.00 July 1, 1996500–899 ........................ (869–028–00110–6) ...... 48.00 July 1, 1996900–1899 ...................... (869–028–00111–4) ...... 20.00 July 1, 19961900–1910 (§§ 1909 to

1910.999) .................. (869–028–00112–2) ...... 43.00 July 1, 19961910 (§§ 1910.1000 to

end) ......................... (869–028–00113–1) ...... 27.00 July 1, 19961911–1925 .................... (869–028–00114–9) ...... 19.00 July 1, 19961926 ............................. (869–028–00115–7) ...... 30.00 July 1, 19961927–End ...................... (869–026–00118–9) ...... 36.00 July 1, 1995

30 Parts:1–199 ........................... (869–028–00117–3) ...... 33.00 July 1, 1996200–699 ........................ (869–028–00118–1) ...... 26.00 July 1, 1996700–End ....................... (869–028–00119–0) ...... 38.00 July 1, 1996

31 Parts:0–199 ........................... (869–028–00120–3) ...... 20.00 July 1, 1996200–End ....................... (869–028–00121–1) ...... 33.00 July 1, 199632 Parts:1–39, Vol. I .......................................................... 15.00 2 July 1, 19841–39, Vol. II ......................................................... 19.00 2 July 1, 19841–39, Vol. III ........................................................ 18.00 2 July 1, 19841–190 ........................... (869–028–00122–0) ...... 42.00 July 1, 1996191–399 ........................ (869–028–00123–8) ...... 50.00 July 1, 1996400–629 ........................ (869–028–00124–6) ...... 34.00 July 1, 1996630–699 ........................ (869–028–00125–4) ...... 14.00 5 July 1, 1991700–799 ........................ (869–028–00126–2) ...... 28.00 July 1, 1996800–End ....................... (869–028–00127–1) ...... 28.00 July 1, 1996



35 ................................ (869–028–00134–3) ...... 15.00 July 1, 1996

36 Parts1–199 ........................... (869–028–00135–1) ...... 20.00 July 1, 1996200–End ....................... (869–028–00136–0) ...... 48.00 July 1, 1996

37 ................................ (869–028–00137–8) ...... 24.00 July 1, 1996

38 Parts:0–17 ............................. (869–026–00140–5) ...... 30.00 July 1, 199518–End ......................... (869–028–00139–4) ...... 38.00 July 1, 1996

39 ................................ (869–028–00140–8) ...... 23.00 July 1, 1996

40 Parts:1–51 ............................. (869–028–00141–6) ...... 50.00 July 1, 199652 ................................ (869–028–00142–4) ...... 51.00 July 1, 199653–59 ........................... (869–028–00143–2) ...... 14.00 July 1, 199660 ................................ (869-026-00146-4) ...... 36.00 July 1, 199561–71 ........................... (869–028–00145–9) ...... 47.00 July 1, 199672–80 ........................... (869–028–00146–7) ...... 34.00 July 1, 199681–85 ........................... (869–028–00147–5) ...... 31.00 July 1, 199686 ................................ (869–026–00149–9) ...... 40.00 July 1, 199587-135 .......................... (869–028–00149–1) ...... 35.00 July 1, 1996136–149 ........................ (869–028–00150–5) ...... 35.00 July 1, 1996150–189 ........................ (869–026–00151–1) ...... 25.00 July 1, 1995190–259 ........................ (869–028–00152–1) ...... 22.00 July 1, 1996260–299 ........................ (869–026–00153–7) ...... 40.00 July 1, 1995300–399 ........................ (869–028–00154–8) ...... 28.00 July 1, 1996


400–424 ........................ (869–028–00155–6) ...... 33.00 July 1, 1996425–699 ........................ (869–028–00156–4) ...... 38.00 July 1, 1996700–789 ........................ (869–028–00157–2) ...... 33.00 July 1, 1996790–End ....................... (869–028–00158–7) ...... 19.00 July 1, 199641 Chapters:1, 1–1 to 1–10 ..................................................... 13.00 3 July 1, 19841, 1–11 to Appendix, 2 (2 Reserved) ................... 13.00 3 July 1, 19843–6 ..................................................................... 14.00 3 July 1, 19847 ........................................................................ 6.00 3 July 1, 19848 ........................................................................ 4.50 3 July 1, 19849 ........................................................................ 13.00 3 July 1, 198410–17 ................................................................. 9.50 3 July 1, 198418, Vol. I, Parts 1–5 ............................................. 13.00 3 July 1, 198418, Vol. II, Parts 6–19 ........................................... 13.00 3 July 1, 198418, Vol. III, Parts 20–52 ........................................ 13.00 3 July 1, 198419–100 ............................................................... 13.00 3 July 1, 19841–100 ........................... (869–028–00159–9) ...... 12.00 July 1, 1996101 ............................... (869–028–00160–2) ...... 36.00 July 1, 1996102–200 ........................ (869–028–00161–1) ...... 17.00 July 1, 1996201–End ....................... (869–028–00162–9) ...... 17.00 July 1, 1996

42 Parts:1–399 ........................... (869–026–00163–4) ...... 26.00 Oct. 1, 1995400–429 ........................ (869–026–00164–2) ...... 26.00 Oct. 1, 1995430–End ....................... (869–026–00165–1) ...... 39.00 Oct. 1, 1995

43 Parts:1–999 ........................... (869–026–00166–9) ...... 23.00 Oct. 1, 19951000–3999 .................... (869–026–00167–7) ...... 31.00 Oct. 1, 19954000–End ...................... (869–026–00168–5) ...... 15.00 Oct. 1, 1995

44 ................................ (869–026–00169–3) ...... 24.00 Oct. 1, 1995

45 Parts:1–199 ........................... (869–022–00170–7) ...... 22.00 Oct. 1, 1995200–499 ........................ (869–028–00170–0) ...... 14.00 6 Oct. 1, 1995500–1199 ...................... (869–026–00172–3) ...... 23.00 Oct. 1, 19951200–End ...................... (869–026–00173–1) ...... 26.00 Oct. 1, 1995

46 Parts:1–40 ............................. (869–026–00174–0) ...... 21.00 Oct. 1, 199541–69 ........................... (869–026–00175–8) ...... 17.00 Oct. 1, 199570–89 ........................... (869–026–00176–6) ...... 8.50 Oct. 1, 199590–139 .......................... (869–026–00177–4) ...... 15.00 Oct. 1, 1995140–155 ........................ (869–026–00178–2) ...... 12.00 Oct. 1, 1995156–165 ........................ (869–026–00179–1) ...... 17.00 Oct. 1, 1995166–199 ........................ (869–026–00180–4) ...... 17.00 Oct. 1, 1995200–499 ........................ (869–026–00181–2) ...... 19.00 Oct. 1, 1995500–End ....................... (869–026–00182–1) ...... 13.00 Oct. 1, 1995

47 Parts:0–19 ............................. (869–026–00183–9) ...... 25.00 Oct. 1, 199520–39 ........................... (869–026–00184–7) ...... 21.00 Oct. 1, 199540–69 ........................... (869–026–00185–5) ...... 14.00 Oct. 1, 199570–79 ........................... (869–026–00186–3) ...... 24.00 Oct. 1, 199580–End ......................... (869–026–00187–1) ...... 30.00 Oct. 1, 1995

48 Chapters:1 (Parts 1–51) ............... (869–026–00188–0) ...... 39.00 Oct. 1, 19951 (Parts 52–99) ............. (869–026–00189–8) ...... 24.00 Oct. 1, 19952 (Parts 201–251) .......... (869–026–00190–1) ...... 17.00 Oct. 1, 19952 (Parts 252–299) .......... (869–026–00191–0) ...... 13.00 Oct. 1, 19953–6 ............................... (869–026–00192–8) ...... 23.00 Oct. 1, 19957–14 ............................. (869–026–00193–6) ...... 28.00 Oct. 1, 199515–28 ........................... (869–026–00194–4) ...... 31.00 Oct. 1, 199529–End ......................... (869–026–00195–2) ...... 19.00 Oct. 1, 1995

49 Parts:1–99 ............................. (869–026–00196–1) ...... 25.00 Oct. 1, 1995100–177 ........................ (869–026–00197–9) ...... 34.00 Oct. 1, 1995178–199 ........................ (869–026–00198–7) ...... 22.00 Oct. 1, 1995200–399 ........................ (869–026–00199–5) ...... 30.00 Oct. 1, 1995400–999 ........................ (869–026–00200–2) ...... 40.00 Oct. 1, 19951000–1199 .................... (869–026–00201–1) ...... 18.00 Oct. 1, 19951200–End ...................... (869–026–00202–9) ...... 15.00 Oct. 1, 1995

50 Parts:1–199 ........................... (869–026–00203–7) ...... 26.00 Oct. 1, 1995200–599 ........................ (869–026–00204–5) ...... 22.00 Oct. 1, 1995600–End ....................... (869–026–00205–3) ...... 27.00 Oct. 1, 1995

viii Federal Register / Vol. 61, No. 223 / Monday, November 18, 1996 / Reader Aids


CFR Index and FindingsAids .......................... (869–028–00051–7) ...... 35.00 Jan. 1, 1996

Complete 1996 CFR set ...................................... 883.00 1996

Microfiche CFR Edition:Subscription (mailed as issued) ...................... 264.00 1996Individual copies ............................................ 1.00 1996Complete set (one-time mailing) ................... 264.00 1995Complete set (one-time mailing) ................... 244.00 19941 Because Title 3 is an annual compilation, this volume and all previous volumes

should be retained as a permanent reference source.2 The July 1, 1985 edition of 32 CFR Parts 1–189 contains a note only for

Parts 1–39 inclusive. For the full text of the Defense Acquisition Regulationsin Parts 1–39, consult the three CFR volumes issued as of July 1, 1984, containingthose parts.

3 The July 1, 1985 edition of 41 CFR Chapters 1–100 contains a note onlyfor Chapters 1 to 49 inclusive. For the full text of procurement regulationsin Chapters 1 to 49, consult the eleven CFR volumes issued as of July 1,1984 containing those chapters.

4 No amendments to this volume were promulgated during the period Apr.1, 1990 to Mar. 31, 1996. The CFR volume issued April 1, 1990, should beretained.

5 No amendments to this volume were promulgated during the period July1, 1991 to June 30, 1996. The CFR volume issued July 1, 1991, should be retained.

6 No amendments were promulgated during the period October 1, 1995 toSeptember 30, 1995. The CFR volume issued October 1, 1995 should be retained.

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