Federal Register proposed rules — 1995-10-30

issue-1995-10-30Federal Register proposed rules — 1995-10-30Proposed Regulation

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Published Federal Register documents, not public-inspection drafts. The GPO XML/text rendition is a research aid; the linked complete official PDF retains the printed layout and all graphics. Graphics are retained in that PDF and are not independently reproduced in this text rendition. Publication does not establish that every provision remains legally in force.

FR Doc. 95-26884 Authority of the Federal Crop Insurance Corporation To Require Employer Identification Numbers From Policyholders and Reinsured Companies for Purposes of the Federal Crop Insurance Act
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Page 55228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26884]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[IA-4-92]
RIN 1545-AQ49

Authority of the Federal Crop Insurance Corporation To Require 
Employer Identification Numbers From Policyholders and Reinsured 
Companies for Purposes of the Federal Crop Insurance Act

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.

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SUMMARY: This document withdraws the notice of proposed rulemaking 
published in the Federal Register on August 31, 1992, that relates to 
the authority of the Federal Crop Insurance Corporation (FCIC) to 
require policyholders and reinsured companies to furnish employer 
identification numbers for purposes of administering the Federal Crop 
Insurance Act.

FOR FURTHER INFORMATION CONTACT: Beverly A. Baughman (202) 622-4940 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    On August 31, 1992, the IRS published proposed regulations (IA-4-
92) in the Federal Register (57 FR 39379) under section 6109 of the 
Internal Revenue Code, relating to the authority of the FCIC to collect 
employer identification numbers. Although written comments and requests 
for a public hearing were solicited, no written or oral comments were 
received and no public hearing was requested or held. Because the 
proposed regulations merely restate the rules in section 6109, the IRS 
has decided, in the interest of simplification, to withdraw those 
proposed regulations.

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Withdrawal of Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, the notice of 
proposed rulemaking that was published in the Federal Register on 
August 31, 1992, (57 FR 39379) is withdrawn.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 95-26884 Filed 10-27-95; 8:45 am]
BILLING CODE 4830-01-U

Complete official Federal Register PDF

FR Doc. 95-26856 Clean Air Act Proposed Interim Approval of Operating Permits Program; Maryland
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55231-55237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26856]

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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 70

[AD-FRL-5321-9]

Clean Air Act Proposed Interim Approval of Operating Permits 
Program; Maryland

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed interim approval.

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SUMMARY: The EPA proposes interim approval of the operating permits 
program submitted by Maryland. This program was submitted by Maryland 
for the purpose of complying with federal requirements which mandated 
that states develop, and submit to EPA, programs for issuing operating 
permits to all major stationary sources, and to certain other sources.

DATES: Comments on this proposed action must be received in writing by 
November 29, 1995.

ADDRESSES: Comments should be addressed to Enid Gerena, (3AT23), Air, 
Radiation and Toxics Division, U.S. Environmental Protection Agency, 
Region III, 841 Chestnut Building, Philadelphia, PA 19107.
    Copies of Maryland's submittal and other supporting information 
used in developing the proposed interim approval are available for 
inspection during normal business hours at the following location: Air, 
Radiation, and 

[[Page 55232]]
Toxics Division, U.S. Environmental Protection Agency, Region III, 841 
Chestnut Building, Philadelphia, Pennsylvania 19107.

FOR FURTHER INFORMATION CONTACT: Enid A. Gerena (3AT23), Air, 
Radiation, and Toxics Division, U.S. Environmental Protection Agency, 
Region III, 841 Chestnut Building, Philadelphia, PA 19107, (215) 597-
8239.

SUPPLEMENTARY INFORMATION:

I. Background

A. Introduction

    As required under Title V of the Clean Air Act (CAA) as amended 
(1990), EPA has promulgated rules which define the minimum elements of 
an approvable state operating permits program and the corresponding 
standards and procedures by which EPA will approve, oversee, and 
withdraw approval of state operating permits programs (see 57 FR 32250 
(July 21, 1992)). These rules are codified at 40 Code of Federal 
Regulations (CFR) Part 70 and require states to develop, and submit to 
EPA, programs for issuing these operating permits to all major 
stationary sources and to certain other sources. Due to pending 
litigation over several aspects of the Part 70 rule which was 
promulgated on July 21, 1992, Part 70 is in the process of being 
revised. When the final revisions to Part 70 are promulgated, the 
requirements of the revised Part 70 will define EPA's criteria for the 
minimum elements of an approvable state operating permits program and 
the corresponding standards and procedures by which EPA will approve, 
oversee, and withdraw approval of state operating permits program 
submittals. Until the date which the revisions to Part 70 are 
promulgated, the currently effective July 21, 1992 version of Part 70 
shall be used as the basis for EPA review.

B. Federal Oversight and Sanctions

    The CAA requires that states develop and submit these programs to 
EPA by November 15, 1993, and that EPA act to approve or disapprove 
each program within 1 year after receiving the submittal. EPA's program 
review occurs pursuant to section 502 of the CAA and the July 21, 1992 
version of Part 70, which together outline the currently applicable 
criteria for approval or disapproval. Where a program substantially, 
but not fully, meets the requirements of Part 70, EPA may grant the 
program interim approval for a period of up to 2 years. If EPA has not 
fully approved a program by 2 years after the November 15, 1993 date, 
or by the end of an interim program, EPA must establish and implement a 
federal operating permits program.
    Following final interim approval, if the State of Maryland fails to 
submit a complete corrective program for full approval by 6 months 
before the interim approval expires, EPA would start an 18-month clock 
for mandatory sanctions. If Maryland then failed to submit a complete 
corrective program that EPA found complete before the expiration of 
that 18-month period, EPA would be required to apply one of the 
sanctions in section 179(b) of the CAA. Such sanction would remain in 
effect until EPA determined that Maryland had corrected the deficiency 
by submitting a complete corrective program. Moreover, if the 
Administrator found a lack of good faith on the part of Maryland, both 
sanctions under section 179(b) would apply after the expiration of the 
18-month period until the Administrator determined that Maryland had 
come into compliance. In any case, if, six months after application of 
the first sanction, Maryland still had not submitted a corrective 
program that EPA found complete, a second sanction would be required.
    If, following final interim approval, EPA disapproved Maryland's 
complete corrective program, EPA would be required to apply one of the 
section 179(b) sanctions on the date 18 months after the effective date 
of the disapproval, unless prior to that date Maryland had submitted a 
revised program and EPA had determined that this program corrected the 
deficiencies that prompted the disapproval. Moreover, if the 
Administrator found a lack of good faith on the part of Maryland, both 
sanctions under section 179(b) would apply after the expiration of the 
18-month period until the Administrator determined that Maryland had 
come into compliance. In all cases, if, six months after EPA applied 
the first sanction, Maryland had not submitted a revised program that 
EPA had determined corrected the deficiencies that prompted the 
disapproval, a second sanction would be required.
    In addition, discretionary sanctions may be applied where warranted 
any time after the end of an interim approval period if Maryland has 
not timely submitted a complete corrective program or EPA has 
disapproved a submitted corrective program. Moreover, if EPA has not 
granted full approval to a Maryland program by the expiration of an 
interim approval period, EPA must promulgate, administer and enforce a 
federal operating permits program for Maryland upon the date the 
interim approval period expires.

C. State of Maryland's Submittal

    On May 9, 1995, Maryland submitted an operating permits program for 
review by EPA. The submittal was supplemented by additional materials 
on June 9, 1995, and was found to be administratively complete pursuant 
to 40 CFR 70.4(e)(1). The submittal includes the following components: 
transmittal letter; description of Maryland's Title V operating permits 
program; state regulations; Attorney General's legal opinion; workload 
analysis, permit fee demonstration; permitting program documentation, 
and additional information (i.e., transition plan, data management, 
compliance tracking and enforcement description).

II. Summary and Analysis of Maryland's Submittal

    The analysis contained in this notice focuses on the major portions 
of Maryland's operating permits program submittal: regulations and 
program implementation, fees, support materials, and provisions 
implementing the requirements of Titles III and IV of the CAA. 
Specifically, this notice addresses the deficiencies in Maryland's 
submittal which will need to be corrected to fully meet the 
requirements of the July 21, 1992 version of Part 70. These 
deficiencies as well as other issues related to Maryland's operating 
permits program are discussed in detail in the Technical Support 
Document (TSD). The full program submittal and the TSD are available 
for review as part of the public docket. The docket may be viewed 
during regular business hours at the EPA Region III office listed in 
the ADDRESSES section of this notice.

A. Regulations and Program Implementation

    Maryland's operating permits program is primarily defined by 
regulations adopted as Code of Maryland Regulations (COMAR), Title 26, 
Subtitle 11. The specific regulations being adopted to implement the 
Part 70 requirements will appear at COMAR Sec. 26.11.02 (Permits, 
Approvals, and Registration) and COMAR Sec. 26.11.03 (Permits, 
Approvals, and Registration--Part 70 Permits). Provisions for 
enforcement authority are located in COMAR Sec. 26.11.02.05. Maryland 
submitted a list identifying ``Title V'' and ``Non-Title V'' provisions 
of its regulations. This list is provided in the TSD. In today's 
proposal, EPA is taking action only on the Title V portions of 
Maryland's submittal.

[[Page 55233]]

    During the review of Maryland's regulations, EPA identified several 
instances of vague language, misreferences, typographical errors, and 
errors of omission in the regulatory language. The provisions in which 
these errors occur are identified in the TSD and must be interpreted as 
if written correctly to fully meet the requirements of Part 70. The 
following analysis of Maryland's operating permit regulations 
corresponds directly with the format and structure of Part 70.

Section 70.4  State Program Submittals and Transition

    Maryland's regulations substantially meet the requirements of 40 
CFR 70.4 for the State program submittal. For consistency with section 
502(b)(6) of the Clean Air Act and 40 CFR 70.4(b)(3)(x), Maryland must 
address the following issue on standing for judicial review and the 
following changes must be made in order to fully meet the requirements 
of 40 CFR 70.4:
    1. The Attorney General of Maryland, in his opinion dated June 9, 
1995, states that ``the laws of Maryland provide adequate authority to 
carry out the program submitted on May 9, 1995 by the Maryland 
Department of the Environment (the Department) to the U.S Environmental 
Protection Agency for approval to administer and enforce the operating 
permit program under Title V of the CAA and 40 CFR Part 70 (the Part 70 
program).'' Section 502(b)(6) of the CAA and 40 CFR 70.4(b)(3)(x) 
require that the program provide standing for judicial review of a 
permit action to THE PERMIT APPLICANT, any person who participated in 
the public comment process and any other person who could obtain 
judicial review of that action under applicable law. EPA interprets 
section 502(b)(6) of the CAA and part 70 as requiring that approvable 
state title V permits programs must provide judicial review to any 
party who participated in the public comment process and who meets the 
threshold requirements of Article III of the U.S. Constitution for 
standing in federal courts.
    The Attorney General cites the Maryland Environmental Standing Act 
(MESA), Md. Nat. Res. Code Ann. Secs. 1-501 to 1-508 (1990), as the 
primary avenue for third parties to obtain judicial review of the 
Department's issuance of a Part 70 permit. The Attorney General 
interprets MESA to provide standing to challenge permit issuance in 
actions for mandamus or equitable relief (including declaratory relief) 
to several categories of persons. Those categories are: (1) The state, 
(2) any political subdivision of the state, and (3) any other person, 
regardless of whether that person possesses a special interest 
different from that possessed generally by the residents of Maryland or 
whether substantial personal or property damage to that person is 
threatened. The Attorney General recognizes that MESA does not provide 
standing for a direct judicial review of permit actions under 
Maryland's Administrative Procedure Act (APA), Md. State Gov't Code 
Ann. Sec. 10-201 (1990). Nonetheless, it appears that review of 
essentially equivalent scope as direct judicial review is available 
under MESA. The Attorney General notes that the Maryland Supreme Court 
has stated that an administrative proceeding such as permit issuance or 
denial, even if not subject to direct review under the APA, would be 
subject to judicial review of essentially the same scope in an action 
for mandamus or equitable relief (including certiorari, injunction, or 
declaratory judgment).
    For purposes of MESA, the term ``person'' includes any resident of 
Maryland, any Maryland corporation, and any partnership, organization, 
association or legal entity doing business in the state. Parties not 
falling within this definition of ``person'' (for example, individuals 
living in an adjacent state but near a Maryland source, or an 
organization not doing business in Maryland) can not take advantage of 
the standing provisions of MESA. Instead, those parties are required to 
establish standing for judicial review under the Maryland common law of 
standing. Under Maryland common law, in order to establish standing, a 
party must demonstrate it has a ``specific interest or property right'' 
such that the party will suffer harm that is different in kind from 
that suffered by the general public. There are no reported cases in 
Maryland that would preclude a non-economic interest (such as a 
recreational, conservational or aesthetic interest) from constituting 
the type of specific interest needed for standing. If a Maryland 
judicial decision having precedential effect is issued in the future 
limiting the special interest required for standing to economic 
interests, then the Maryland standing requirements would become more 
stringent than Article III standing requirements. In that event, EPA 
will take appropriate action under 40 CFR 70.11(c).
    With respect to organizations not doing business in Maryland, the 
Maryland standing requirements are somewhat less favorable than the 
standing requirements of Article III of the U.S. Constitution. The 
federal courts interpret Article III to provide standing for 
organizations in actions brought to protect the interests of its 
members, provided certain conditions are met. See Chesapeake Bay 
Foundation v. Bethlehem Steel Corp., 608 F.Supp. 440 (D. Md. 1985). 
Under Maryland common law of standing, an organization must have an 
interest of its own, separate and distinct from that of its individual 
members, in order to establish standing. Medical Waste Associates, Inc. 
v. Maryland Waste Coalition, 327 Md. 596 (1992). However, the Maryland 
Attorney General notes that if at least one plaintiff in an action for 
review of a permit establishes standing, the Maryland courts will not 
ordinarily inquire as to whether other plaintiffs have standing. 
Therefore, an organization doing business outside of Maryland may be 
able to participate in a permit challenge on behalf of its individual 
members if other parties having the requisite standing also join as 
plaintiffs in the action. (Of course, organizations doing business in 
Maryland can establish standing under MESA, as discussed above.)
    MESA must be amended to accord non-state residents and 
organizations not doing business in Maryland the same standing to 
challenge Part 70 permit decisions as other ``persons'' as defined in 
MESA, or, in the alternative, other appropriate legislative action must 
be taken to ensure that standing requirements for such organizations 
are not more restrictive than the minimum requirements of Article III 
of the U.S. Constitution as they apply to federal courts. A 
straightforward approach Maryland could take to resolving this issue 
would be to amend its state APA to directly provide for the opportunity 
for judicial review of permit actions in state court, consistent with 
CAA section 502(b)(6) and 40 CFR 70.4(b)(3)(x); this would avoid the 
risk of any future Maryland judicial decision interpreting MESA or 
Maryland's common law of standing potentially compromising Maryland's 
Part 70 approval status.

Section 70.5  Permit Applications

    Maryland's regulations substantially meet the requirements of 40 
CFR 70.5 for permit applications. The following changes must be made in 
order to fully meet the requirements of 40 CFR 70.5:
    1. COMAR Sec. 26.11.03.04 lists 17 types of emission units and 
activities that are exempt from being included in the Part 70 permit 
application. 40 CFR 70.5(c) allows EPA to approve a list of 
insignificant activities or emissions levels which need not be included 
in permit applications; however, the State must identify such emissions 
levels or 

[[Page 55234]]
insignificant activities based on size, emission rate or production 
rate. Maryland must make three changes to COMAR Sec. 26.11.03.04 in 
order to meet the requirements of 40 CFR 70.5(c):
    a. As part of the list of emission units and activities exempt from 
the Part 70 permit application, COMAR Sec. 26.11.03.04 A(18) lists 
``any other emission unit that is not subject to an applicable 
requirement of the Clean Air Act.'' Part 70 does not allow such a broad 
exemption of emission units from the permit application requirements. 
40 CFR 70.5(c)(3)(i) requires that a permit application describe all 
emissions of regulated air pollutants from any emissions unit, except 
where such units are exempted as part of a list of insignificant 
activities or emission levels. Insignificant activities or emissions 
levels must be clearly identified and established based on a 
justifiable limitation, such as a size or emissions threshold.
    b. Maryland must revise COMAR Sec. 26.11.03.04 B to provide that a 
permit applicant shall not omit information needed to determine the 
applicability of, or to impose, any applicable requirement, consistent 
with 40 CFR 70.5(c).
    c. Maryland must revise COMAR Sec. 26.11.03.04 A(2) to clarify the 
exemption for boilers used exclusively to operate steam engines for 
farm and domestic use. This exemption must be modified to impose a 
justifiable and objective emission limit, heat content limit, or size 
limitation to restrict this exemption to insignificant activities. 
Maryland must also provide enough information to identify the activity 
and/or unit qualifying for an exemption.

Section 70.7  Permit Issuance, Renewal, Reopenings, and Revisions

    Maryland's regulations substantially meet the requirements of 40 
CFR 70.7 for permit issuance, renewal, reopenings, and revisions. The 
following changes must be made in order to fully meet the requirements 
of 40 CFR 70.7:
    1. COMAR Sec. 26.11.03.21 A provides that general permits will be 
issued after notice and opportunity for public comment and hearing as 
required by the rule making provisions of the Administrative Procedure 
Act (APA), State Government Article Sec. 10-101 et seq., Annotated Code 
of Maryland, and Environmental Article Sec. 2-301, Annotated Code of 
Maryland. While the APA and Sec. 2-301 and Sec. 2-303 of the 
Environmental Article provide adequate public notice and comment 
provisions, they do not provide all necessary permit issuance 
procedures required by 40 CFR 70.7(h). COMAR Sec. 26.11.03.21 A also 
states that any general permit shall comply with all requirements 
applicable to other Part 70 permits.
    It is not clear, however, whether this provision applies to the 
issuance of general permits. Maryland's provisions for issuance of Part 
70 permits (COMAR Secs. 26.11.03.07-.09) are adequate, but the 
regulations do not specifically state whether they apply to general 
permits. Specifically, Maryland must require that the procedures for 
issuing general permits include notice and opportunity for 
participation by affected states consistent with 40 CFR 70.7(h)(3) and 
70.8 (COMAR Sec. 26.11.03.08) and a 45-day EPA review period, 
consistent with 70.8(a) and (c) (COMAR Sec. 26.11.03.09). Further, 
Maryland must keep a record of public commenters and issues raised 
during the public participation process so that EPA may fulfill its 
obligation under section 505(b)(2) of the Act to determine whether a 
citizen petition may be granted (COMAR Sec. 26.11.03.07(G)). EPA 
recommends that Maryland clarify that these provisions apply to the 
issuance of general permits by citing in COMAR Sec. 26.11.03.21 A the 
appropriate sections of Maryland's regulations.
    2. The procedures for revising a general permit under COMAR 
Secs. 26.11.03.21 J and L must be changed to meet the requirements of 
40 CFR 70.7(e) regarding permit revision procedures. COMAR 
Sec. 26.11.03.21 J allows the Department to revise or repeal a general 
permit using the procedures that are appropriate to the particular 
permit. COMAR Sec. 26.11.03.21 L states that the revision procedures 
set forth in Maryland's regulations do not apply to a general permit, 
except as provided in the general permit. These sections are 
inconsistent with Part 70 because they give the Department discretion 
to determine the appropriate procedures that should be followed to 
revise a general permit. Under 40 CFR 70.7(e)(1), the permitting 
authority is required to provide procedures for permit modifications 
that provide a level of public participation and review by the 
permitting authority, EPA and affected states that is at least equal to 
that provided in Part 70. Therefore, if the Department proposes a 
significant change in the general permit's terms and conditions, such 
as a relaxation of reporting requirements or an increase in the 
applicable emissions limit, the general permit would need to be revised 
according to procedures for a significant permit modification, 
including a 30 day public comment period, an opportunity for a public 
hearing, and review by EPA and affected states. Those proposed 
revisions to the general permit that meet the criteria for 
administrative permit amendments or minor permit modifications could be 
processed using procedures consistent with 40 CFR 70.7(d) and 
Sec. 70.7(e)(2), respectively. It should be made clear that the general 
permit cannot be modified for individual sources; rather, each source 
that applies for and is granted approval to operate under the general 
permit must adhere to the same permit terms and conditions. If the 
Department determines that a revision to the general permit is 
necessary, it must revise the permit using procedures consistent with 
40 CFR 70.7, as described above.
    3. Maryland's requirements for permit reopenings, including COMAR 
Secs. 26.11.03.07 A(2), 26.11.03.08 A and 26.11.03.20 C (4), (5) and 
(6), provide the State discretion to follow procedures other than the 
procedures for permit issuance. Maryland's COMAR Sec. 26.11.03.20 C(4) 
states that ``the procedures that the Department specifies to be 
followed if a permit is reopened shall be based on the Department's 
determination as to what type of change to the permitted source is 
likely to result from reopening the permit, using Regulations 
[26.11.03] .14-.17 [pertaining to permit revisions] of this chapter as 
guidance.'' By contrast, 40 CFR 70.7(f)(2) requires that procedures to 
reopen and issue a permit shall follow the same procedures as apply to 
initial permit issuance. Maryland's provisions for permit reopening 
procedures are inconsistent with Part 70. However, future revisions to 
Part 70 may provide flexibility in the procedures that States must use 
to reopen permits. On August 31, 1995, EPA proposed revisions to Part 
70 that would streamline the procedures for revising Title V operating 
permits. (See 60 FR 45530.)
    4. COMAR Sec. 26.11.03.17 F provides that a permittee shall submit 
an application for a significant permit modification not later than 12 
months after commencing operation of the changed source unless the 
change is prohibited by the Part 70 permit. This provision is 
inconsistent with 40 CFR 70.7(e)(4), which does not allow a source to 
make a significant permit modification prior to receiving a revised 
permit from the permitting authority. A significant permit modification 
is a change that does not qualify as an administrative permit amendment 
or a minor permit modification. Significant modifications include 
relaxations in monitoring, reporting, or recordkeeping. By allowing a 
source to submit its permit application 12 months after making a 
change, COMAR Sec. 26.11.03.17 

[[Page 55235]]
F is less stringent than 40 CFR 70.7(e)(4) and allows a source even 
more leniency in making a significant change than for making minor 
permit modifications or administrative permit amendments. This is 
clearly not the intent of the significant permit modification 
provisions of 40 CFR 70.7(e)(4). Future revisions to Part 70, as 
described above, may provide flexibility in the procedures that States 
must use to process permit revisions.
    5. COMAR Sec. 26.11.03.14 C allows the Department to approve 
changes to compliance plans or schedules as part of an administrative 
permit amendment or minor permit modification. This provision is less 
stringent than 40 CFR 70.7 because the relaxation of a compliance plan 
or schedule is a significant change that should be processed as a 
significant permit modification. Future revisions to Part 70, as 
described above, may provide flexibility in the procedures that States 
must use to revise permits.
    6. COMAR Sec. 26.11.03.15 B(7) contains the following sentence: 
``Notwithstanding Sec. [26.11.03.15] B(1)-(6) [pertaining to 
administrative permit amendments] of this regulation, for purposes of 
the acid rain portion of a Part 70 permit is governed by regulations 
promulgated under Title IV of the Clean Air Act.'' This sentence 
apparently was written in error. EPA assumes that this sentence is 
meant to reflect the provisions of 40 CFR 70.7(e), which states that a 
permit modification (other than an administrative permit amendment) for 
purposes of the acid rain portion of the permit shall be governed by 
regulations promulgated under Title IV of the Clean Air Act. Maryland 
must correct the wording of COMAR Sec. 26.11.03.15 B(7).

Section 70.8  Permit Review By EPA and Affected States

    Maryland's regulations substantially meet the requirements of 40 
CFR 70.8 for permit review by EPA and affected states. The following 
changes must be made in order to fully meet the requirements of 40 CFR 
70.8:
    1. COMAR Sec. 26.11.03 appears to allow the Department to make 
changes in a final permit after EPA has completed its review of the 
permit. For example, COMAR Sec. 26.11.03.11 includes provisions for 
implementing changes to a final permit subsequent to a contested case 
hearing and the issuance of a proposed decision by an Administrative 
Law Judge (ALJ). On the basis of past experience with other air quality 
control programs, Maryland believes that it will be an extremely rare 
occasion when an applicant seeks such a hearing. In the event that such 
proceeding does occur, COMAR Sec. 26.11.03.11 affords EPA the 
opportunity to participate in the hearing. In the event that EPA does 
not participate, COMAR Sec. 26.11.03.11 affords EPA a thirty (30) day 
opportunity to comment on the proposed decision of the ALJ prior to the 
Department's issuance of a final decision in the matter. However, in 
the event that the Department thereafter issues a final decision which 
modifies or changes conditions in the final permit, federal and state 
requirements (the Clean Air Act, 40 CFR 70.8 and COMAR 
Sec. 26.11.03.09) should be read as requiring the Department to provide 
EPA with an additional (45 day) period in which to review and comment 
on the final permit. Maryland must revise its Attorney General's 
Opinion to acknowledge that in the event the Department implements 
changes to any final permit, EPA will have an additional (45 day) 
period to review and comment on the final permit, as revised by the 
Department.

B. Variances

    Maryland Environmental Article sections 2-501, 606, 610(c), 611, 
and 613 are cited by the Department as variance provisions which 
authorize the Department to deviate from certain applicable 
requirements within and outside the permitting process. EPA has no 
authority to approve provisions of State law, such as the variance 
provisions referred to in these sections, which are inconsistent with 
the CAA. EPA does not recognize the ability of a permitting authority 
to grant relief from the duty to comply with a federally enforceable 
Part 70 permit, except where such relief is granted through procedures 
allowed by Part 70. EPA reserves the right to enforce the terms of the 
Part 70 permit where the permitting authority purports to grant relief 
from the duty to comply with a Part 70 permit in a manner inconsistent 
with Part 70 procedures.

C. Permit Fee Demonstration

    COMAR Sec. 26.11.02.19(A) states that owners or operators of Part 
70 sources will be required to pay an annual fee consisting of a base 
fee of two hundred dollars ($200) plus an emissions-based fee for each 
ton of regulated emissions. Beginning in January 1, 1996, the fee rate 
will be twenty-five dollars per ton ($25) of regulated emissions. On 
January 1, 1997, this annual fee will be adjusted by the Consumer Price 
Index (CPI). Fee revenues received from Part 70 facilities will be 
placed in a segregated portion of the Department's Air and Radiation 
Management Administration budget. Surplus funds from any prior year of 
the program will be carried over to the following year to be used 
solely for Part 70 permitting activity.
    Only program-related fees from facilities subject to Part 70 
applicability will be used to fund the program. Maryland's fee 
calculation, based upon recent (September 1994) emissions inventory 
data, shows that revenues will be able to cover the estimated costs of 
the program. In chapter IV of the submittal entitled, ``Workload 
Analysis and Fee Demonstration'', Maryland estimates revenues and costs 
associated with the implementation of its operating permits program. 
The Air and Radiation Management Administration proposes an accounting 
method whereby Part 70 program activities performed by technical 
personnel in the Air Quality Permits and Compliance Program will be 
coded directly to specified Part 70 program cost accounts. In the 
submittal, Maryland stated that in the event of a temporary shortfall 
of revenues, the Department will have the option to prorate fees 
collected from facilities with Phase I units (acid rain) so as to allow 
fees from non-Phase I units at these sites to be used for Part 70 
activities. According to 40 CFR 70.9(b)(3), the permitting authority is 
allowed to calculate fees on any particular basis or in the same manner 
for all Part 70 sources, or all regulated air pollutants, provided that 
the state collects a total amount of fees sufficient to meet the 
program. Maryland meets the requirements of 40 CFR 70.9(b)(3). However, 
it will be necessary for the State to demonstrate how these revenues 
will be prorated. EPA recommends that Maryland establish an account 
tracking system that will distinguish between revenues and expenditures 
attributable to Phase I from non-Phase I units. The estimates of 
revenues from the authorized collection of emission-based fees reveal 
that Maryland's program will have adequate funding to cover the direct 
and indirect costs of implementing the permit program during each of 
the first four years.

D. Provisions Implementing the Requirements of Title III Implementing 
Title III Standards Through Title V Permits

    Maryland's regulations provide general authority to administer and 
enforce the requirements of the Clean Air Act regarding hazardous air 
pollutants, and thus generally meet the requirements of 40 CFR 70.3 
(a)-(b). The following issue must be addressed in order to fully meet 
the requirements of 40 CFR 70.3 (a)-(b). 

[[Page 55236]]

    1. In its May 9, 1995 submittal, Maryland advised EPA that it was 
not seeking full Part 70 program approval regarding hazardous air 
pollutants, but was considering whether to request EPA approval of its 
existing air toxics program (COMAR Sec. 26.11.15) under Subpart E of 40 
CFR Part 63. As a result, the Attorney General did not review the 
State's Part 70 program regarding current federal requirements for 
hazardous air pollutants. Maryland must resolve the issue of how it 
will address the CAA's section 112 applicable requirements and revise 
its Attorney General's opinion to include a detailed review of the 
State's Part 70 program regarding current federal requirements for 
hazardous air pollutants.
    Under Environment Article, Title 2, of the Annotated Code of 
Maryland and COMAR Sec. 26.11.03.06 A(1), Maryland, in its Title V 
program submittal, has demonstrated broad legal authority to 
incorporate all applicable requirements into permits and to enforce its 
permit requirements. In its May 9, 1995 submittal, Maryland indicated 
that the Part 70 permits will be the mechanism to implement mandatory 
Section 112 requirements and that other federally-enforceable 
mechanisms may be used to carry out specific CAA section 112 activities 
but only if approved by EPA. EPA regards this commitment as an 
obligation to obtain further legal authority as needed to issue permits 
that assure compliance with the CAA's section 112 applicable 
requirements.
    For a further discussion in support of this interpretation, please 
refer to the TSD accompanying this rulemaking, which is located in the 
public docket, and the April 13, 1993 guidance memorandum entitled 
``Title V Program Approval Criteria for Section 112 Activities,'' 
signed by John Seitz, Director, Office of Air Quality Planning and 
Standards, Office of Air and Radiation, USEPA.
Implementation of 112(g) Upon Program Approval
    EPA is proposing to approve Maryland's operating permits program 
for the purpose of implementing CAA section 112(g) during the 
transition period between federal promulgation of a section 112(g) rule 
and Maryland's adoption of section 112(g) implementing regulations. 
Until recently, EPA had interpreted the CAA to require sources to 
comply with section 112(g) beginning on the date of approval of the 
Title V program regardless of whether EPA had completed its section 
112(g) rulemaking. EPA has since revised this interpretation of the CAA 
as described in a February 14, 1995 Federal Register notice (see 60 FR 
83333). The revised interpretation postpones the effective date of 
section 112(g) until after EPA has promulgated a rule addressing that 
provision. The rationale for the revised interpretation is set forth in 
detail in the February 14, 1995 interpretive notice.
    The section 112(g) interpretive notice explains that EPA is still 
considering whether the effective date of section 112(g) should be 
delayed beyond the date of promulgation of the federal rule to allow 
states time to adopt rules implementing the federal rule, and that EPA 
will provide for any such additional delay in the final section 112(g) 
rulemaking. Unless and until EPA provides for such an additional 
postponement of section 112(g), Maryland must be able to implement 
section 112(g) during the transition period between promulgation of the 
federal section 112(g) rule and adoption of implementing Maryland 
regulations.
    EPA believes that, although Maryland currently lacks a program 
designed specifically to implement section 112(g), Maryland's Title V 
operating permits program will serve as an adequate implementation 
vehicle during the transition period because the program will allow 
Maryland to select control measures that would meet Maximum Achievable 
Control Technology (MACT) on a case-by-case basis, as defined in 
section 112, and incorporate these measures into federally enforceable 
source-specific permits.
    This proposed approval clarifies that Maryland's operating permits 
program is available as a mechanism to implement section 112(g) during 
the transition period between promulgation of the section 112(g) rule 
and adoption by Maryland of rules established to implement section 
112(g). EPA is proposing to limit the duration of this approval to an 
outer limit of 18 months following EPA's promulgation of the section 
112(g) rule. Comment is solicited on whether 18 months is an 
appropriate period taking into consideration the State's procedures for 
adoption of regulations. However, since this proposed approval is for 
the single purpose of providing a mechanism to implement section 112(g) 
during the transition period, the approval itself will be without 
effect if EPA decides in the final section 112(g) rule that sources are 
not subject to the requirements of the rule until State regulations are 
adopted.
    Although section 112(l) generally provides the authority for 
approval of state air toxics programs, Title V and section 112(g) 
provide authority for this limited approval because of the direct 
linkage between implementation of section 112(g) and Title V.
    If Maryland does not wish to implement section 112(g) through the 
proposed mechanisms discussed above and can demonstrate that an 
alternative means of implementing section 112(g) exists during the 
transition period, EPA may, in the final action approving Maryland's 
Part 70 program, approve such alternative.
Program for Straight Delegation of Section 112 Standards
    As previously noted, Maryland has advised EPA that it currently is 
not seeking full Part 70 program approval regarding hazardous air 
pollutants, but is considering a request for approval of its existing 
air toxics program (COMAR Sec. 26.11.15) under Subpart E of 40 CFR Part 
63. However, prior to receiving EPA approval of its existing air toxics 
program, Maryland must agree that the requirements specified in 40 CFR 
70.4(b), encompass section 112(l)(5) requirements for a program for 
delegation of unchanged section 112 standards. Section 112(l)(5) 
requires state programs to contain adequate authorities and resources 
for implementation, and an expeditious compliance schedule, which are 
also requirements under Part 70. Prior to a decision by EPA regarding 
approval of its existing air toxics program, EPA proposes to grant 
approval under section 112(l)(5) and 40 CFR 63.91 of Maryland's program 
for receiving delegation of section 112 standards that are unchanged 
from the federal standards as promulgated. For EPA-promulgated rules 
which are applicable to sources in the State, the State intends to 
request delegation after adopting the rules. The details of this 
delegation mechanism will be established prior to delegating any 
section 112 standards. This program applies to both existing and future 
standards but is limited to sources covered by the Part 70 program.

E. Title IV Provisions/Commitments

    As part of the May 9, 1995 program submittal, Maryland committed to 
submit all missing portions of the Title IV acid rain program by 
November 15, 1995, including its State acid rain regulations.

III. Request for Public Comments

    EPA is soliciting public comments on the issues discussed in this 
notice or on other relevant matters. These comments will be considered 
before taking final action. Interested parties may participate in this 
federal rulemaking action by submitting written comments 

[[Page 55237]]
to the EPA Regional office listed in the ADDRESSES section of this 
notice.

Proposed Action

    EPA is proposing to grant interim approval of the operating permits 
program submitted by Maryland on May 9, 1995, and the Attorney 
General's Legal Opinion submitted on June 9, 1995. The scope of 
Maryland's Part 70 program applies to all Part 70 sources (as defined 
in the program) within Maryland, except for sources of air pollution 
over which an Indian Tribe has jurisdiction. See, e.g., 59 FR 55813, 
55815-18 (Nov. 9, 1994). The term ``Indian Tribe'' is defined under the 
CAA as ``any community, including any Alaska Native village, which is 
federally recognized as eligible for the special programs and services 
provided by the United States to Indians.'' See section 302(r) of the 
CAA; see also 59 FR 43956, 43962 (Aug. 25. 1994); 58 FR 54364 (Oct. 21, 
1993). Prior to full approval by EPA, Maryland must make the following 
changes:
    1. The Maryland Environmental Standing Act (MESA) must be amended 
to accord non-state residents and organizations not doing business in 
Maryland the same standing to challenge Part 70 permit decisions as 
other ``persons'' as defined in MESA, or, in the alternative, other 
appropriate legislative action must be taken to ensure that standing 
requirements for such organizations are not more restrictive than the 
minimum requirements of Article III of the U.S. Constitution as they 
apply to federal courts.
    2. Revise the provisions for insignificant activities under COMAR 
Sec. 26.11.03.04 as follows, to achieve consistency with the 
requirements of 40 CFR 70.5(c):
    a. Remove the exemption for ``any other emission unit that is not 
subject to an applicable requirement of the Clean Air Act'' under COMAR 
Sec. 26.11.03.04 A(18).
    b. Revise COMAR Sec. 26.11.03.04 B to provide that a permit 
applicant shall not omit information needed to determine the 
applicability of, or to impose, any applicable requirement.
    c. Revise COMAR Sec. 26.11.03.04 A(2) to add a justifiable 
limitation on the exemption for boilers used exclusively to operate 
steam engines for farm and domestic use.
    3. Revise COMAR Sec. 26.11.03.21 to clarify that the procedures for 
issuing general permits must include affected state and EPA review, and 
that the state must keep a record of the public commenters and issues 
raised during the public participation process, consistent with 40 CFR 
70.7(h) and 70.8.
    4. Revise COMAR Secs. 26.11.03.21 J and L to require that general 
permits are revised according to procedures consistent with 40 CFR 
70.7(e).
    5. Revise COMAR Secs. 26.11.03.07 A(2), 26.11.03.08 A, and 
26.11.03.20 C (4), (5) and (6) to provide that the procedures for 
initial permit issuance also must be followed for permit reopenings, to 
achieve consistency with the requirements of 40 CFR 70.7(f)(2).
    6. Remove subsection F of COMAR Sec. 26.11.03.17, which 
impermissibly allows sources to submit a permit application within 12 
months after making a significant permit modification.
    7. Revise COMAR Sec. 26.11.03.14 C to require that any relaxation 
of a compliance plan or schedule will be processed as a significant 
permit modification, consistent with 40 CFR 70.7(e)(4).
    8. Revise the wording of COMAR Sec. 26.11.03.15 B(7), pertaining to 
permit modifications for acid rain permits, consistent with 40 CFR 
70.7(e).
    9. Amend the Attorney General's Opinion to clarify that if the 
Department proposes to change a final permit as a result of a contested 
case decision by an Administrative Law Judge and pursuant to COMAR 
Sec. 26.11.03.11, the Department will revoke the final permit and 
reissue it with the proposed changes so as to provide EPA with the (45 
day) review and comment period required pursuant to the CAA, 40 CFR 
70.8 and COMAR Sec. 26.11.03.09.
    10. Revise the Attorney General's Opinion to include a detailed 
review of the State's Part 70 program regarding current federal 
requirements for hazardous air pollutants.
    This interim approval, which may not be renewed, extends for a 
period of up to 2 years. During the interim approval period, Maryland 
is protected from sanctions for failure to have a fully approved Title 
V, Part 70 program, and EPA is not obligated to promulgate a federal 
permits program in Maryland. Permits issued under a program with 
interim approval have full standing with respect to Part 70, and the 1-
year time period for submittal of permit applications by subject 
sources begins upon interim approval, as does the 3-year time period 
for processing the initial permit applications.
    Requirements for approval, specified in 40 CFR 70.4(b), encompass 
the CAA's section 112(l)(5) requirements for approval of a program for 
delegation of section 112 standards applicable to Part 70 sources as 
promulgated by EPA. Section 112(l)(5) requires that the State's program 
contain adequate authorities, adequate resources for implementation, 
and an expeditious compliance schedule, which are also requirements 
under Part 70. Therefore, EPA is also proposing under section 112(l)(5) 
and 40 CFR 63.91 to grant approval of Maryland's program for receiving 
delegation of section 112 standards that are unchanged from federal 
standards as promulgated. This program for delegations only applies to 
sources covered by the Part 70 program.
    The Office of Management and Budget has exempted this action from 
Executive Order 12866 review.
    EPA's actions under section 502 of the Act do not create any new 
requirements, but simply address operating permits programs submitted 
to satisfy the requirements of 40 CFR Part 70. Because this action to 
propose interim approval of Maryland's operating permits program 
pursuant to Title V of the CAA and 40 CFR Part 70 does not impose any 
new requirements, it does not have a significant impact on a 
substantial number of small entities.

List of Subjects in 40 CFR Part 70

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Intergovernmental relations, Operating permits, 
Reporting and recordkeeping requirements.

    Authority: 42 U.S.C. 7401-7671q.

    Dated: October 20, 1995.
W. Michael McCabe,
Regional Administrator.
[FR Doc. 95-26856 Filed 10-27-95; 8:45 am]
BILLING CODE 6560-50-P

Complete official Federal Register PDF

FR Doc. 95-26787 Almonds Grown in California; Secretary's Decision and Referendum Order on Proposed Further Amendment of Marketing Agreement and Order No. 981
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55213-55220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26787]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================

Federal Register / Vol. 60, No. 209 / Monday, October 30, 1995 / 
Proposed Rules

[[Page 55213]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. A0-214-A7; FV-93-981-1]

Almonds Grown in California; Secretary's Decision and Referendum 
Order on Proposed Further Amendment of Marketing Agreement and Order 
No. 981

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule and referendum order.

-----------------------------------------------------------------------

SUMMARY: This decision proposes amendments to the subject marketing 
agreement and order (order) and provides almond producers with the 
opportunity to vote in a referendum to determine if they favor the 
proposed amendments. The proposed amendments were submitted by the 
Almond Board of California (Board) and five additional persons. The 
proposed changes would: change five existing definitions in the order; 
revise Board representation, nomination procedures, terms of office, 
quorum and qualification procedures, voting and tenure requirements; 
modify creditable advertising provisions; revise volume control 
procedures; require handlers to maintain records in the State of 
California; authorize interest or late payment charges on assessments 
paid late; provide for periodic continuance referenda; authorize 
exemptions for organic almonds from certain program requirements; and 
make necessary conforming changes. These changes are being proposed to 
improve the administration, operation and functioning of the California 
almond marketing order program.

DATES: The referendum shall be conducted from January 8, 1996, through 
February 2, 1996. The representative period for the purpose of the 
referendum herein ordered is July 1, 1994, through June 30, 1995.

FOR FURTHER INFORMATION CONTACT: Kathleen M. Finn, Marketing 
Specialist, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, DC 20090-
6456, telephone: (202) 720-1509 or Fax (202) 720-5698; or Martin 
Engeler, Assistant Officer-in-Charge, California Marketing Field 
Office, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, 2202 Monterey Street, suite 102-B, Fresno, 
California 93721; (209) 487-5901 or FAX (209) 487-5906.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Hearing issued on August 3, 1993, and published in the Federal 
Register on August 17, 1993 (58 FR 43565). Recommended Decision and 
Opportunity to File Written Exceptions issued on March 22, 1995, and 
published in the Federal Register on April 6, 1995 (60 FR 17466).
    This administrative action is governed by the provisions of 
sections 556 and 557 of Title 5 of the United States Code and, 
therefore, is excluded from the requirements of Executive Order 12866.

Preliminary Statement

    The proposed amendments were formulated on the record of a public 
hearing held in Modesto, California, on November 3, 4 and 5, 1993, to 
consider the proposed amendment of the Marketing Agreement and Order 
No. 981, regulating the handling of almonds grown in California, 
hereinafter referred to collectively as the ``order.'' The hearing was 
held pursuant to the provisions of the Agricultural Marketing Agreement 
Act of 1937, as amended (7 U.S.C. 601 et seq.), hereinafter referred to 
as the Act, and the applicable rules of practice and procedure 
governing proceedings to formulate marketing agreements and marketing 
orders (7 CFR part 900). The Notice of Hearing contained several 
amendment proposals submitted by the Almond Board of California (Board) 
established under the order to assist in local administration of the 
program and by five additional persons.
    The Board's proposals would: (1) Increase its membership by two 
positions and change Board nomination, selection, and operation 
procedures; (2) change the term of office of its members from one to 
three years, and limit the tenure of Board members; (3) change the 
definitions of ``cooperative handler,'' ``to handle,'' ``settlement 
weight,'' ``crop year'' and ``trade demand''; (4) require handlers of 
California almonds to maintain program records in the State of 
California; (5) change its advertising assessment credit program to 
allow credit for certain advertising costs incurred by handlers not 
previously authorized; (6) authorize requiring handlers to pay interest 
and/or late payment charges for past due assessments; (7) provide for 
continuance referenda every five years; (8) require handlers to submit 
grower lists to the Board; and (9) allow multi-year contracting.
    Five persons submitted additional proposals related to continuance 
referenda, Board composition and nomination procedures, organic 
almonds, regulatory provisions, advertising and promotion, assessments, 
compliance audits, the definition of grower, and research and reserve 
operations.
    The Fruit and Vegetable Division, Agricultural Marketing Service 
(AMS), U.S. Department of Agriculture (USDA), proposals would make such 
changes as are necessary to the order, if any or all of the above 
amendments are adopted, so that all of its provisions conform with the 
proposed amendment. USDA also proposed that continuance referenda be 
conducted on a periodic basis consistent with USDA's policy guidelines.
    Upon the basis of evidence introduced at the hearing and the record 
thereof, the Administrator of the Agricultural Marketing Service (AMS) 
on March 22, 1995, filed with the Hearing Clerk, U.S. Department of 
Agriculture, a Recommended Decision and Opportunity to File Written 
Exceptions thereto by May 8, 1995. Exceptions were received from Mr. 
Robert J. Crockett, Attorney, Office of the General Counsel, USDA, 
representing the Board; Mr. Steven W. Easter, Vice President, Blue 
Diamond Growers, Inc.; Mr. Brian C. Leighton, general counsel to almond 
handler Cal-Almond, Inc.; and Mr. Rick Veldstra, almond grower. The 
exceptions will be addressed in this document.

Small Business Considerations

    In accordance with the provisions of the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601 et seq.), the Administrator of the AMS has 
determined that this action 

[[Page 55214]]
would not have a significant economic impact on a substantial number of 
small entities. Small agricultural service firms, which include 
handlers regulated under this order, have been defined by the Small 
Business Administration (SBA) (13 CFR 121.601) as those having annual 
receipts of less than $5,000,000. Small agricultural producers are 
defined as those having annual receipts of less than $500,000.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders and 
rules issued thereunder are unique in that they are brought about 
through group action of essentially small entities acting on their own 
behalf. Thus, both the RFA and the Act have small entity orientation 
and compatibility. Interested persons were invited to present evidence 
at the hearing on the probable impact that the proposed amendments to 
the order would have on small businesses.
    During the 1993-94 crop year, approximately 115 handlers were 
regulated under Marketing Order No. 981. In addition, there are about 
7,000 producers of almonds in the production area. The Act requires the 
application of uniform rules on regulated handlers. Marketing orders 
and amendments thereto are unique in that they are normally brought 
about through group action of essentially small entities for their own 
benefit. Thus, both the RFA and the Act are compatible with respect to 
small entities.
    The proposed amendments to the marketing agreement and order 
include changes to five definitions in the marketing order. These 
definitions are cooperative handler, to handle, settlement weight, crop 
year, and trade demand. The changes that are proposed to the 
definitions are intended to make them consistent with current industry 
practices. The proposed changes to the definitions are designed to 
enhance the administration and functioning of the marketing order to 
the benefit of the industry.
    The proposed amendment to revise Board representation would 
increase the Board's size by allowing two additional grower members to 
serve on the Board. This would increase grower representation on the 
Board from five to seven and allow more grower input into Board 
decisions. The quorum size would also be increased to correspond with 
the increase in Board size. The change in voting requirements would 
require an increased number of votes needed to approve a Board action. 
The change to the nomination procedures would require Board nominees to 
be nominated by January 20 rather than April 20 as currently provided. 
This would ensure that the new Board is seated prior to meetings where 
important decisions are made for the following crop year. These 
proposed amendments are designed to improve grower representation on 
the Board and allow the Board to function more efficiently.
    The proposed amendment to change the Board members' term of office 
from one year to three year staggered terms would allow more continuity 
on the Board. This would allow the Board to focus more on long-term 
strategic goals and develop long-term approaches to problems in the 
industry.
    The proposed amendment to require those persons nominated to the 
Board to qualify prior to their selection to the Board is an 
administrative change. This change would allow the selection process to 
take place in a more timely manner. The proposed amendment to add 
tenure requirements for Board members would allow more persons the 
opportunity to serve as members on the Board. It would provide 
opportunity for new ideas and approaches to issues that the Board 
addresses each year.
    The proposed amendment to the creditable advertising provisions 
would provide for expansion of the promotional activities for which 
handlers may receive Credit-Back from their assessments. This would 
allow the Board to increase program flexibility for participating 
handlers.
    The proposed amendment to allow the settlement weight for unshelled 
almonds to be determined on the basis of representative samples would 
be more consistent with current industry practices. There would be no 
increase in burden on handlers expected from this proposed amendment.
    The proposed amendment to require handlers to maintain records in 
the State of California would improve the Board's administration of the 
program. It would also allow the Board to have the records available to 
them for compliance purposes. It is not expected that any additional 
costs would be incurred by handlers to comply with this amendment.
    The proposed amendment to authorize interest and/or late payment 
charges on assessments paid late would encourage handlers to pay their 
assessments on time. Assessments not paid promptly add an undue burden 
on the Board because the Board has ongoing projects and programs funded 
by assessments that are functioning throughout the year. The addition 
of such changes is consistent with standard business practices.
    The proposed amendment to provide for periodic continuance 
referenda would allow growers the opportunity to vote on whether to 
continue the operation of the almond marketing order.
    The proposed amendment to allow handlers to transfer their reserve 
obligation to other handlers would help facilitate the operation of the 
reserve program by providing handlers more flexibility.
    The proposed amendment to exempt organic almonds from certain 
program requirements would provide the organic segment of the industry 
more flexibility in marketing and selling their product. The proposed 
amendment would authorize organic almond handlers to be exempt from 
reserve requirements and advertising assessments. Organic growers and 
handlers demonstrated at the hearing that certain current marketing 
order provisions do not take into account marketing differences between 
certified organic almonds and conventional almonds.
    The proposal to make other miscellaneous changes that would be 
consistent with the proposed amendments is necessary so that all 
sections of the order would be consistent if any or all of the 
amendments are adopted. These changes include deleting and 
redesignating certain sections of the order.
    All these changes are designed to enhance the administration and 
functioning of the marketing agreement and order to the benefit of the 
industry. Accordingly, it is determined that the proposed revisions of 
the order would not have a significant economic impact on handlers or 
producers.
    The amendments proposed herein have been reviewed under Executive 
Order 12778, Civil Justice Reform. They are not intended to have 
retroactive effect. If adopted, the proposed amendments would not 
preempt any state or local laws, regulations, or policies, unless they 
present an irreconcilable conflict with the amendments.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and requesting a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for 

[[Page 55215]]
a hearing on the petition. After the hearing, the Secretary would rule 
on the petition. The Act provides that the district court of the United 
States in any district in which the handler is an inhabitant, or has 
his or her principal place of business, has jurisdiction in equity to 
review the Secretary's ruling on the petition, provided a bill in 
equity is filed not later than 20 days after the date of the entry of 
the ruling.
    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
35), the reporting and recordkeeping provisions that are included in 
the proposed amendments will be submitted to the Office of Management 
and Budget (OMB). They would not become effective prior to OMB 
approval.

Findings and Conclusions and Rulings on Exceptions

    The material issues, findings and conclusions, rulings, and general 
findings and determinations included in the Recommended Decision set 
forth in the April 6, 1995, issue of the Federal Register (60 FR 17466) 
are hereby approved and adopted subject to the following additions and 
modifications:
    Based upon the exceptions filed by Mr. Crockett, Mr. Leighton and 
Mr. Veldstra, the findings and conclusions in material issue number six 
of the Recommended Decision concerning the acceptable methods for Board 
voting and Board voting requirements are amended by adding the 
following four paragraphs after the 16th paragraph of material issue 
number six to read as follows:
    The exception filed by Mr. Crockett indicated that section 981.40 
should be modified to include the term ``other electronic means'' as an 
acceptable method for voting. ``Other electronic means'' is envisioned 
to include the use of modems, video and teleconferencing. The term is 
flexible to allow for the advancement of new technologies that could be 
used by the Board for voting. Mr. Crockett stated that although ``other 
electronic means'' was not part of the original proposal, its 
incorporation at this time is reasonable since it is merely a technical 
adjustment. This request is also consistent with the record evidence. 
Therefore, in accordance with Mr. Crockett's exception, the amendatory 
language in Sec. 981.40 is modified.
    The exception received from Mr. Leighton objects to the proposed 
voting requirements, indicating that one segment of the industry, Blue 
Diamond, would have the ability to effectively block any proposed 
action by the Board.
    The exception received from Mr. Veldstra similarly objected to the 
voting requirements proposed, indicating that it is fundamentally 
flawed to guarantee one segment of the industry a minimum of 5 votes, 
when those 5 votes could constitute a ``Super Minority'' able to direct 
the policy of the Board by their veto power.
    Testimony at the hearing indicated strong industry support for this 
proposal. Proponents testified that the proposed voting requirements 
would help increase industry cohesion. No new evidence or arguments to 
the contrary were presented in the exceptions. Further, no one industry 
segment will perpetually be guaranteed a certain number of votes as a 
result of this proposal because of the ability to reapportion Board 
membership, which is discussed under material issue number 14. 
Therefore, these exceptions are denied.
    Based upon the exception of Mr. Veldstra and the exception of Mr. 
Leighton, the findings and conclusions in material issue number 14 of 
the Recommended Decision concerning whether to authorize the Board, 
with the approval of the Secretary, to reapportion grower and/or 
handler member representation on the Board based on the proportionate 
amounts of almonds handled by different segments of the industry are 
amended by adding the following three paragraphs after the tenth 
paragraph of material issue number 14 to read as follows:
    The exception filed by Mr. Veldstra indicated that reapportionment 
of Board membership should be required, based on percentages of crop 
produced by industry segments, rather than optional, at the 
recommendation of the Board and approval of the Secretary. 
Reapportionment should be required because otherwise, one segment of 
the industry would be able to prohibit passing a Board action 
recommending reapportionment, if the proposed voting requirements in 
material issue number 6 are approved. This could result in one segment 
of the industry having a disproportionate share of Board representation 
based on percentage of production.
    The exception filed by Mr. Leighton stated that Board 
representation should be based on percentages of crop represented by 
each entity. The exception indicated that although the proposed 
amendment allows for changes in reapportionment and representation, any 
such changes will not occur if the voting requirements in material 
issue number 6 are implemented. The exception stated that Blue Diamond 
would not vote for any change which would reduce their representation, 
thus any Board recommendation on this issue would be blocked.
    Hearing testimony indicated that the number of growers represented 
by industry entities should also be given consideration in determining 
equitable Board representation as well as tonnage handled by these 
entities. The current proposal with respect to representation reflects 
this position and testimony presented indicates widespread industry 
support for the proposal. In addition, there was no specific 
alternative proposal presented. However, USDA recognizes the potential 
problems associated with the Board's ability to pass an action 
recommending reapportionment and changes in representation, if voting 
requirements as proposed in material issue number 6 are implemented. It 
should be clarified that the amendatory language as proposed in 
Sec. 981.31(d) does not require a recommendation by the Board on this 
issue. Although USDA looks to the Board as the body representing the 
industry for recommendations on such issues, it is not precluded from 
taking action to reapportion membership based on other information 
available. Therefore, no change to the proposed order language is 
necessary based on Mr. Veldstra's and Mr. Leighton's exceptions. Their 
exceptions are denied.
    Based upon the exception filed by Mr. Leighton, the findings and 
conclusions in material issue number 13 of the Recommended Decision 
concerning the deletion of the authority for the Credit-Back 
advertising program under the almond marketing order and to modify the 
generic program are amended by adding the following two paragraphs 
after the 11th paragraph of material issue number 13 to read as 
follows:
    Mr. Leighton's exception stated that he opposed the generic 
advertising program, but a generic advertising program is preferable to 
a brand program, provided excessive funds are not expended promoting 
almonds as snacks off the store shelf. Mr. Leighton also reiterated 
that the new Credit-Back program violates the First Amendment to the 
U.S. Constitution. In addition, he states that there is not wide 
industry support for this proposal because a number of handlers 
representing 20 percent of the tonnage in the industry have filed 
administrative petitions pursuant to 7 U.S.C. section 608c(15)(A) 
contesting the constitutionality of this program.
    The record evidence does not the support the deletion of the 
authority for this program. The Credit-Back program provides 
flexibility in allowing the Board and handlers various options to 

[[Page 55216]]
promote almonds. The program provides the opportunity for handlers to 
receive credit against their assessment obligation or pay assessments 
for a generic program. Although there are currently ongoing legal 
challenges to this program, the record evidence supports maintaining 
the authority for the program. With the authority in place, 
recommendations can be made by the Board and implemented by the 
Secretary to further modify and improve the program, if warranted. The 
program need not be active if it is determined that discontinuing all 
or part of the program would be in the best interest of the industry. 
Therefore, Mr. Leighton's exception is denied.
    Based upon the exception filed by Mr. Leighton, the findings and 
conclusions in material issue number 17 of the Recommended Decision 
concerning the requirement that the Board provide handlers with 24 
hours advance notice before audits are conducted of records and 
inspections of reserve almonds are amended by adding the following two 
paragraphs after the sixth paragraph of material issue number 17 to 
read as follows:
    Mr. Leighton's exception states that USDA does not provide examples 
showing that ``surprise'' visits by the Board have uncovered widespread 
abuse of the reporting requirements relating to the reserve provisions. 
In addition, Mr. Leighton states that the Board should not require 
handlers to use their own equipment and personnel during the audit 
visits.
    As previously stated, the almond industry is subject to Federal 
regulation and therefore, audit visits are a part of participating in 
this Federal program. USDA requires that adequate compliance programs 
are in place for marketing order programs. The record evidence 
supported the continuation of such a tool for compliance purposes. In 
addition, the record evidence supported handlers assisting the Board by 
using their equipment and personnel during an audit visit. Therefore, 
Mr. Leighton's exception is denied.
    Based upon the exceptions filed by Mr. Leighton, Mr. Veldstra and 
Mr. Easter, the findings and conclusions in material issue number 18 of 
the Recommended Decision concerning the requirement for handlers to 
submit to the Board a list of growers who have delivered almonds to 
such handler during the crop year are amended by adding the following 
four paragraphs after the 17th paragraph of material issue number 18 to 
read as follows:
    The exception filed by Mr. Leighton stated that Blue Diamond should 
also be required to submit a grower list to the Board. He stated that 
since the independent grower list would be available under the Freedom 
of Information Act, Blue Diamond is given an unfair advantage by having 
accessibility to all almond growers. Mr. Leighton contends that the 
independent growers should be allowed the same opportunity.
    Mr. Veldstra's exception similarly objected to the material issue 
stating that if Blue Diamond's list is proprietary and protected under 
California State law, then the independent list should also be 
protected. In addition, Mr. Veldstra stated that Blue Diamond growers 
should elect Blue Diamond growers to the Board rather than have them 
appointed by the cooperative. Finally, Mr. Veldstra stated that growers 
who deliver their almonds to both the cooperative and independent 
handlers may theoretically vote twice in elections--once through the 
cooperative process and once as independent growers. If the Board had a 
complete list, it could identify these situations and ensure that 
growers participate in the voting process only once.
    As previously stated, the record evidence supports that the primary 
reason an independent grower list would be submitted to the Board would 
be for the purposes of Board elections. Record evidence showed that 
there are other sources of obtaining a grower list. The Blue Diamond 
cooperative testified that they do inform their members of all 
important matters concerning the marketing order. Blue Diamond's list 
is its grower/supplier list and therefore, it is considered their 
customer list. This would not be the case for a list of independent 
growers in part, because this list is not handler-specific. In 
addition, there was no record evidence to support that Board members 
elected from the cooperative should be elected in another manner as 
suggested by Mr. Veldstra. Also, growers participating in independent 
elections must certify on the ballot that they do not deliver almonds 
to a cooperative. Therefore, Mr. Leighton's and Mr. Veldstra's 
exceptions are denied.
    The exception filed by Mr. Easter fully supported the proposal. Mr. 
Easter stated that Blue Diamond believes that its grower list is 
protected by California law and that no case has been made for a 
requirement that it be submitted to the Board.
    Based upon the exception filed by Mr. Leighton, the findings and 
conclusions in material issue number 19 of the Recommended Decision 
concerning the addition of the authority to require handlers to pay 
interest and/or late payment charges are amended by adding the 
following two paragraphs after the seventh paragraph of material issue 
number 19 to read as follows:
    The exception filed by Mr. Leighton stated that unless prevailing 
handlers can receive a refund of assessments wrongfully imposed plus 
interest, the proposed revisions to section 981.81 to allow the 
collection of interest and late penalties on past due assessments is 
confiscatory and violates Due Process. Mr. Leighton further stated that 
this provision violates the First Amendment, because handlers will be 
penalized for filing administrative challenges to any assessment 
provision by being forced to pay late charges if their challenges are 
unsuccessful. Mr. Leighton contends that the proposal authorizing the 
Board to assess late payments and/or interest on unpaid assessments 
should not be adopted unless the proposal authorizing interest to 
handlers for successfully challenging the payment of assessments is 
adopted.
    As previously discussed, the evidence at the hearing fully 
supported this proposal. Many marketing orders provide for the 
collection of interest and/or late payment charges to encourage prompt 
payment of assessments. Again, the Act authorizes that each handler 
shall pay to a marketing order committee such handler's pro rata share 
for the operation of the marketing order. Therefore, Mr. Leighton's 
exception is denied.
    Based upon the exception filed by Mr. Leighton, the findings and 
conclusions in material issue number 20 of the Recommended Decision 
concerning the requirement of refunds plus payment of interest to a 
handler in the event a suit or administrative petition filed by a 
handler challenging the payment of assessments is successful are 
amended by adding the following two paragraphs after the fifth 
paragraph of material issue number 20 to read as follows:
    Mr. Leighton's exception stated that unless this proposal is 
adopted, Material Issue number 19, which proposes authority for 
interest and late payment charges should not be adopted. Mr. Leighton 
indicated that USDA rejected this proposal because ``the Board may not 
have funds available to make a refund'' and Due Process requires a 
clear and certain remedy if one must pay now and file a complaint 
later. Mr. Leighton further stated that USDA clearly does not address 
where court ordered refunds will be derived, nor does it provide for 
such remedy.
    The record does not support this proposal. Section 608c(15)(A) of 
the Act provides a method for challenging marketing order provisions. 
In addition, 

[[Page 55217]]
USDA did not reject this proposal on the basis of the ability to pay 
refunds. USDA relied on the record and the evidence presented by both 
sides. Therefore, Mr. Leighton's exception is denied.
    Based upon the exception filed by Mr. Crockett, the findings and 
conclusions in material issue number 24 of the Recommended Decision 
concerning the exemption of organic almonds from all reserve 
requirements are amended by adding the following three paragraphs after 
the ninth paragraph of material issue number 24 to read as follows:
    The exception from Mr. Crockett requested that USDA reconsider this 
proposal. Mr. Crockett stated that this proposal would create a 
separate class of producers from the mainstream of almond production 
and would eliminate the flexibility of the Board to address this issue. 
Further, Mr. Crockett indicated that past experience shows that the 
Board determined that certified organic almonds would be an eligible 
outlet for disposition of reserve almonds when special circumstances 
warranted exempting them from these requirements. The exception also 
indicated that the circumstances today may be that organically grown 
almonds are non-competitive in nature, but the situation could change 
in the future. For this reason, Mr. Crockett stated that the Board 
should be allowed to respond to those changes as they arise and not be 
bound by a regulation that no longer reflects the realities of almond 
production. Mr. Crockett further stated that the cost to administer 
such an exemption is prohibitive and would cause compliance problems 
because there is no practical means of identifying an organically grown 
almond from a conventional almond.
    The proponents of this proposal presented a compelling case that 
certified organic almonds are unique and are sold into different 
markets. In addition, growers and handlers of organic almonds must 
follow strict regulations to ensure their almonds are certified organic 
and these almonds can be traced by a paper trail to the retail level.
    Mr. Crockett's concern regarding compliance problems that could be 
encountered in documenting sales of certified organic almonds does have 
merit. Although stringent requirements exist for certifying almonds as 
organic, it is important that the order require that handlers provide 
documentation substantiating that their almonds meet these requirements 
if they are to be exempt from reserve requirements. The proposed 
amendment to section 981.47(b) is being slightly modified to require 
that documentation be submitted to the Board by handlers in order to 
substantiate that almonds were, in fact, sold as certified organic and 
met the requirements of the Organic Foods Production Act of 1990 and 
the California Organic Foods Act of 1990 in order to be exempt from 
reserve requirements. Therefore, Mr. Crockett's exception is accepted, 
in part.
    Based upon the exception filed by Mr. Crockett, the findings and 
conclusions in material issue number 25 of the Recommended Decision 
concerning the authority to allow the Board to enter into contracts for 
periods of five years for services, goods or other reasonable expenses 
are amended by adding the following two paragraphs after the eighth 
paragraph of material issue number 25 to read as follows:
    The exception filed by Mr. Crockett requested that USDA reconsider 
this proposal. The exception indicated that the inability to enter into 
long term arrangements for goods and services from vendors hinders the 
efficiency of the order. Mr. Crockett stated the Board should be able 
to avail itself of such simple common business sense to stretch grower 
monies to their maximum effectiveness. Mr. Crockett further stated that 
although USDA states that other marketing orders have been approved for 
long term contracts, it ignores that potential opportunities may be 
lost seeking advance approval of each contract.
    As previously stated, USDA has provided approval for marketing 
order committees to enter into multi-year contracts on a case-by-case 
basis. Record evidence indicates that this proposal could limit annual 
reviews and restrict activities of future Boards. USDA will work with 
the Board to ensure such approvals are completed in a timely manner to 
promote efficient Board operation. Therefore, Mr. Crockett's exception 
is denied.
    Based upon the exception filed by Mr. Leighton, the findings and 
conclusions in material issue number 27 of the Recommended Decision 
concerning certain reserve provisions are amended by adding the 
following two paragraphs after the 11th paragraph of material issue 
number 27 to read as follows:
    Mr. Leighton's exception contended that USDA claimed that removing 
the authority for allocated reserve would remove a valuable tool of the 
Board. However, Mr. Leighton contended that there should be no tool 
available to require the dumping of valuable and nutritious product 
given the storage capability of almonds. In addition, Mr. Leighton 
stated that USDA has a conflict of interest in retaining this tool 
because USDA uses these almonds for school lunch programs. Mr. Leighton 
states that the cost of school lunch programs should be borne by 
taxpayers, not the almond industry.
    The marketing order contains authority to require reserve almonds 
to be disposed of in certain approved outlets that are non-competitive 
with normal markets. There is no requirement for dumping the product. 
Under certain conditions, it may be desirable for the industry to 
divert product to these non-competitive outlets rather than carrying 
product over into the next crop year. Record evidence supports 
retaining this tool. USDA does not consider the provision a conflict of 
interest. USDA does purchase almonds as a surplus removal program and 
those almonds are used in the school lunch program. The purpose of USDA 
surplus removal purchases is to remove excess supplies from normal 
market channels. In addition, USDA does not specify that the almonds it 
buys must be reserve almonds. The record evidence supported adopting 
this proposal, in part. Therefore, Mr. Leighton's exception is denied.

Marketing Agreement and Order

    Annexed hereto and made a part hereof is the document entitled 
``Order Amending the Order Regulating the Handling of Almonds Grown in 
California.'' This document has been decided upon as the detailed and 
appropriate means of effectuating the foregoing findings and 
conclusions.
    It is hereby ordered, That this entire decision be published in the 
Federal Register.

Referendum Order

    It is hereby directed that a referendum be conducted in accordance 
with the procedure for the conduct of referenda (7 CFR 900.400 et seq.) 
to determine whether the issuance of the annexed order amending the 
order regulating the handling of almonds grown in California is 
approved or favored by producers, as defined under the terms of the 
order, who during the representative period were engaged in the 
production of almonds grown in California.
    The representative period for the conduct of such referendum is 
hereby determined to be July 1, 1994, through June 30, 1995.
    The agents of the Secretary to conduct such referendum are hereby 
designated to be Martin Engeler, Assistant Officer-in-Charge, and 
Maureen Pello, Marketing Specialist, California Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, 2202 

[[Page 55218]]
Monterey Street, suite 102-B, Fresno, California 93721, telephone (209) 
487-5901.

List of Subjects in 7 CFR Part 981

    Almonds, Marketing agreements, Nuts, Reporting and recordkeeping 
requirements.

    Dated: October 23, 1995
Shirley R. Watkins,
Acting Assistant Secretary, Marketing and Regulatory Programs.

Order Amending the Order Regulating the Handling of Almonds Grown in 
California 1

    \1\ This order shall not become effective unless and until the 
requirements of Sec. 900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
---------------------------------------------------------------------------

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary and in addition to the findings and determinations 
previously made in connection with the issuance of the order; and all 
of said previous findings and determinations are hereby ratified and 
affirmed, except insofar as such findings and determinations may be in 
conflict with the findings and determinations set forth herein.
    (a) Findings and Determinations Upon the Basis of the Hearing 
Record.
    Pursuant to the provisions of the Agricultural Marketing Agreement 
Act of 1937, as amended (7 U.S.C. 601 et seq.), and the applicable 
rules of practice and procedure effective thereunder (7 CFR part 900), 
a public hearing was held upon the proposed amendments to the Marketing 
Agreement and Order No. 981 (7 CFR part 981), regulating the handling 
of almonds grown in California.
    Upon the basis of the evidence introduced at such hearing and the 
record thereof, it is found that:
    (1) The order, as amended, as hereby proposed to be further 
amended, and all of the terms and conditions thereof, will tend to 
effectuate the declared policy of the Act;
    (2) The order, as amended, as hereby proposed to be further 
amended, regulates the handling of almonds grown in the production area 
in the same manner as, and is applicable only to persons in the 
respective classes of commercial and industrial activity specified in 
the marketing order upon which hearings have been held;
    (3) The order, as amended, as hereby proposed to be further 
amended, is limited in application to the smallest regional production 
area which is practicable, consistent with carrying out the declared 
policy of the Act, and the issuance of several orders applicable to 
subdivisions of the production area would not effectively carry out the 
declared policy of the Act;
    (4) The order, as amended, as hereby proposed to be further 
amended, prescribes, insofar as practicable, such different terms 
applicable to different parts of the production area as are necessary 
to give due recognition to the differences in the production and 
marketing of almonds grown in the production area; and
    (5) All handling of almonds grown in the production area is in the 
current of interstate or foreign commerce or directly burdens, 
obstructs, or affects such commerce.

Order Relative to Handling

    It is therefore ordered, That on and after the effective date 
hereof, all handling of almonds grown in California, shall be in 
conformity to, and in compliance with, the terms and conditions of the 
said order as hereby proposed to be amended as follows:
    The provisions of the proposed marketing agreement and the order 
amending the order contained in the Recommended Decision issued by the 
Administrator on March 22, 1995, and published in the Federal Register 
on April 6, 1995, shall be and are the terms and provisions of this 
order amending the order and are set forth in full herein.

PART 981--ALMONDS GROWN IN CALIFORNIA

    1. The authority citation for 7 CFR part 981 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 981.14 is revised to read as follows:

Sec. 981.14  Cooperative handler.

    Cooperative handler means any handler as defined in Sec. 981.13 of 
this subpart which qualifies for treatment as a nonprofit cooperative 
association as defined in Section 54001, et seq. of the California Food 
and Agricultural Code. The Board, with the approval of the Secretary, 
may modify this definition, if necessary.
    3. Section 981.16 is revised to read as follows:

Sec. 981.16  To handle.

    To handle means to use almonds commercially of own production or to 
sell, consign, transport, ship (except as a common carrier of almonds 
owned by another) or in any other way to put almonds grown in the area 
of production into any channel of trade for human consumption 
worldwide, either within the area of production or by transfer from the 
area of production to points outside or by receipt as first receiver at 
any point of entry in the United States or Puerto Rico of almonds grown 
in the area of production, exported therefrom and submitted for reentry 
or which are reentered free of duty. However, sales or deliveries by a 
grower to handlers, hullers or other processors within the area of 
production shall not, in itself, be considered as handling by a grower.
    4. Section 981.18 is amended by removing the word ``and'' at the 
end of paragraph (b); removing the period and adding ``, and'' at the 
end of paragraph (c); and adding a new paragraph (d) to read as 
follows:

Sec. 981.18  Settlement weight.

* * * * *
    (d) For inedible kernels as defined in Sec. 981.8.
    5. Section 981.19 is revised to read as follows:

Sec. 981.19  Crop year.

    Crop year means the twelve month period from August 1 to the 
following July 31, inclusive. Any new crop almonds harvested or 
received prior to August 1 will be applied to the next crop year for 
marketing order purposes. The first crop year after the implementation 
of this amendment shall be a 13-month period.
    6. Section 981.21 is revised to read as follows:

Sec. 981.21  Trade demand.

    Trade demand means the quantity of almonds (kernelweight basis) 
which commercial distributors and users such as the wholesale, chain 
store, confectionery, bakery, ice cream, and nut salting trades will 
acquire from all handlers during a crop year for distribution 
worldwide.
    7. Sections 981.30 and 981.31 are revised to read as follows:

Sec. 981.30  Establishment.

    The Almond Board shall consist of twelve members, each with an 
alternate member.

Sec. 981.31  Membership representation.

    Membership of the Board will be determined in the following manner:
    (a) Three members and an alternate for each member shall be 
selected from nominees submitted by each of the following groups 
designated in paragraphs (a) (1) and (2) of this section, or from among 
other qualified persons belonging to such groups:
    (1) Those growers who market their almonds through cooperative 
handlers; and 

[[Page 55219]]

    (2) Those growers who market their almonds through other than 
cooperative handlers.
    (b) Two members and an alternate for each member shall be selected 
from nominees submitted by each of the following groups designated in 
paragraphs (b) (1) and (2) of this section, or from among other 
qualified persons belonging to such groups:
    (1) Cooperative handlers; and
    (2) All handlers, other than cooperative handlers.
    (c) One member and an alternate shall be selected from nominees 
submitted by each of the following groups designated in paragraphs 
(c)(1) and (2) of this section, or from among other qualified persons 
belonging to such groups:
    (1) The group of cooperative handlers or the group of handlers 
other than cooperative handlers, whichever received for their account 
more than 50 percent of the almonds delivered by all growers as 
determined by December 31 of the then current crop year; and
    (2) Those growers whose almonds were marketed through the handler 
group identified in paragraph (c)(1) of this section.
    (d) The Secretary, upon recommendation of the Board, or other 
information, may reapportion within the 12-member Board, the number of 
grower members or handler members, or both, of any group listed in 
Sec. 981.31 (a) through (c), to be nominated pursuant to Sec. 981.32. 
Any such change shall be based, insofar as practicable, upon the 
proportionate amounts of almonds handled within any group.
    8. Section 981.32 is amended by revising paragraph (a) and amending 
paragraph (b)(2) by removing the date ``March 31'' and adding in its 
place the date ``December 31'' to read as follows:

Sec. 981.32  Nominations.

    (a) Method. (1) Each year the terms of office of three of the 
members elected pursuant to Sec. 981.31(a) and (b) shall expire, except 
every third year when the term of office for four of those members 
shall expire. Nominees for each respective member and alternate member 
shall be chosen by ballot delivered to the Board. Nominees chosen by 
the Board in this manner shall be submitted by the Board to the 
Secretary on or before February 20 of each year together with such 
information as the Secretary may require. If a nomination for any Board 
member or alternate is not received by the Secretary on or before 
February 20, the Secretary may select such member or alternate from 
persons belonging to the group to be represented without nomination. 
The Board shall mail to all handlers and growers, other than the 
cooperative(s) of record, the required ballots with all necessary 
voting information including the names of incumbents willing to accept 
renomination, and, to such growers, the name of any person proposed for 
nomination in a petition signed by at least 15 such growers and filed 
with the Board on or before January 20. Distribution of ballots shall 
be announced by press release, furnishing pertinent information on 
balloting, issued by the Board through newspapers and other 
publications having general circulation in the almond producing areas.
    (2) Nominees for the positions described in Sec. 981.31(c) shall be 
handled in the same manner as described in paragraph (a)(1) of this 
section except that those terms of office shall expire annually.
* * * * *
    9. Section 981.33 is revised to read as follows:

Sec. 981.33  Selection and term of office.

    (a) Members and their respective alternates for positions open on 
the Board shall be selected by the Secretary from persons nominated 
pursuant to Sec. 981.32, or, at the discretion of the Secretary, from 
other qualified persons, for a term of office beginning March 1. 
Members and alternates shall continue to serve until their respective 
successors are selected and qualified.
    (b) The term of office of members of the Board shall be for a 
period of three years beginning on March 1 of the years selected except 
where otherwise provided. However, for the initial ten members of the 
Board selected pursuant to this section and to paragraphs (a) and (b) 
of Sec. 981.31, three members shall serve for a term of one year; three 
members shall serve for a term of two years; and four members shall 
serve for a term of three years. For the initial terms of office, at 
the time of nomination under Sec. 981.32, the Board shall make this 
designation by lot. The term of office for the two members selected 
under paragraph (c) of Sec. 981.31 shall always be for a period of one 
year.
    (c) Board members may serve for a total of six consecutive years. 
Members who have served for six consecutive years must leave the Board 
for at least one year before becoming eligible to serve again. A person 
who has served less than six consecutive years on the Board may not be 
nominated to a new three year term if his or her total consecutive 
years on the Board at the end of that new term would exceed six years. 
This limitation on tenure shall not include service on the Board prior 
to implementation of this amendment and shall not apply to alternate 
members.
    10. Section 981.34 is revised to read as follows:

Sec. 981.34  Qualification and acceptance.

    (a) Any person to be selected as a member or alternate of the Board 
shall, prior to such selection, qualify by providing such background 
information as necessary and by advising the Secretary that he/she 
agrees to serve in the position for which nominated. Grower members and 
alternates shall be growers or employees of growers, and handler 
members and alternates shall be handlers or employees of handlers. In 
the event any member or alternate ceases to be qualified for the 
position for which selected, that position shall be deemed vacant.
    (b) The Board, with approval of the Secretary, may establish 
additional eligibility requirements for grower members on the Board.
    11. Section 981.40 is amended by revising paragraphs (b) and (c) 
and amending paragraph (e) by removing the word ``seven'' and adding in 
its place the word ``eight'' to read as follows:

Sec. 981.40  Procedure.

* * * * *
    (b) Quorum. The presence of eight members shall be required to 
constitute a quorum. All decisions of the Board shall be as follows 
except where otherwise specifically provided: 8 or 9 members present, 6 
votes; 10 members present, 7 votes; 11 or 12 members present, 8 votes.
    (c) Voting by mail, telegram, fax or other electronic means. The 
Board may vote by mail, telegram, fax or other electronic means upon 
written notice to all members, or alternates acting in their place, 
including in the notice a statement of a reasonable time, not to exceed 
10 days, in which a vote by mail, telegram, fax or other electronic 
means must be received by the Board for counting. Voting by mail, 
telegram, fax or other electronic means shall not be permitted at any 
assembled meeting of the Board. When a proposition is submitted for 
vote by mail, telegram, fax or other electronic means, at least ten 
members of the Board must vote in favor of its passage or the 
proposition shall be defeated.
* * * * *
    12. In Sec. 981.41, paragraph (c) is amended by removing the colon 
and all text following the words ``15 percent'' in the last sentence 
and adding in its place a period and by amending paragraph (a) by 
adding a sentence at the end of the paragraph to read as follows: 

[[Page 55220]]

Sec. 981.41  Research and development.

    (a) * * * Notwithstanding the foregoing, certified organic almonds 
may be exempt from assessments for marketing promotion, including paid 
advertising, upon recommendation of the Board and approval of the 
Secretary.
* * * * *
    13. Section 981.47 is amended by designating the existing paragraph 
as (a), removing the words ``either domestic or'' in the third sentence 
of paragraph (a), and adding a new paragraph (b) to read as follows:

Sec. 981.47  Method of establishing salable and reserve percentages.

* * * * *
    (b) Notwithstanding the provisions of paragraph (a) of this 
section, the Secretary shall exempt from any reserve that is 
established that part of the crop which is sold as ``certified 
organic'' under standards established by the Organic Foods Production 
Act of 1990, (7 U.S.C. 2101 et seq.) and the California Organic Foods 
Act of 1990, as amended: Provided, That handlers provide adequate 
documentation demonstrating the almonds were sold as certified organic 
and met the requirements of the aforementioned Acts. The Board may 
propose regulations to assure procedures to implement this section.
    14. In Sec. 981.49, the introductory paragraph is amended by 
removing the word ``six'' and adding in its place the word ``eight'', 
by removing ``; and'' in paragraph (e) and adding a period in its 
place, by adding ``and'' at the end of paragraph (d); by removing 
paragraph (f) and by revising paragraph (b) to read as follows:

Sec. 981.49  Board estimates and recommendations.

* * * * *
    (b) The estimated handler carryover and the estimated reserve 
inventory as of July 31;
* * * * *

Sec. 981.50  [Amended]

    15. Amend Sec. 981.50 by adding after the words ``into oil'', the 
words ``or sold as certified organic.''
    16. Amend Sec. 981.55 by designating the existing paragraph as (a) 
and adding a new paragraph (b) to read as follows:

Sec. 981.55  Interhandler transfers.

* * * * *
    (b) When saleable and reserve percentages are in effect, any 
handler may transfer reserve withholding obligation to other handlers. 
Terms and conditions implementing this provision must be recommended by 
the Board and approved by the Secretary.
    17. Section 981.60 is amended by revising paragraph (b) to read as 
follows:

Sec. 981.60  Determination of kernel weight.

* * * * *
    (b) Almonds for which settlement is made on unshelled weight. The 
settlement weight for unshelled almonds shall be determined on the 
basis of representative samples of unshelled almonds reduced to shelled 
weight.
    18. Section 981.61 is amended by revising the last sentence to read 
as follows:

Sec. 981.61  Redetermination of kernel weight.

    *  *  * Weights used in such computations for various 
classifications of almonds shall be:
    (a) For unshelled almonds, the kernelweight based on representative 
samples reduced to shelled weight;
    (b) For shelled almonds, the net weight; and
    (c) For shelled almonds used in production of almond products, the 
net weight of such almonds.

Sec. 981.62  [Removed]

    19. Section 981.62 is removed.

Sec. 981.66  [Removed]

    20. Section 981.66 is amended by removing paragraphs (b) and (d), 
redesignating paragraph (c) as paragraph (b), redesignating paragraph 
(e) as paragraph (c), redesignating paragraphs (f) and (g) as 
paragraphs (d) and (e), and by amending newly designated paragraph (c) 
by removing all references to the date ``September 1'' and adding in 
each place ``December 31''.

Sec. 981.67  [Amended]

    21. Section 981.67 is amended by removing all references to the 
date ``September 1'' and adding in each place ``December 31''.
    22. Section 981.70 is amended by revising the first sentence to 
read as follows:

Sec. 981.70  Records and verification.

    Each handler shall keep records which will clearly show the details 
of his or her receipts of almonds, withholdings, sales, shipments, 
inventories, reserve disposition, advertising and promotion activities, 
as well as other pertinent information regarding his or her operation 
pursuant to the provisions of this part: Provided, that, such records 
shall be kept in the State of California. * * *
    23. A new Sec. 981.76 is added before the undesignated center 
heading ``Expenses and Assessments'' to read as follows:

Sec. 981.76  Handler list of growers.

    No later than December 31 of each crop year, each handler other 
than a cooperative handler (hereinafter, referred to as independent 
handler) governed by this subpart shall, upon request, submit to the 
Board a complete list of growers who have delivered almonds to such 
independent handler during that crop year.
    24. Section 981.81 is amended by adding a new paragraph (e) to read 
as follows:

Sec. 981.81  Assessment.

* * * * *
    (e) Any assessment not paid by a handler within a period of time 
prescribed by the Board may be subject to an interest or late payment 
charge or both. The period of time, rate of interest and late payment 
charge shall be as recommended by the Board and approved by the 
Secretary. Subsequent to such approval, all assessments not paid within 
the prescribed period of time shall be subject to an interest or late 
payment charge or both.
    25. Section 981.90 is amended redesignating paragraph (b)(2) and 
(b)(3) as paragraphs (b)(3) and (b)(4) and by amending newly designated 
paragraph (b)(3) by removing the date ``June 1'' and adding in its 
place ``July 1'' and adding a new (b)(2), to read as follows:

Sec. 981.90  Effective time, suspension, or termination.

* * * * *
    (b) * * *
    (2) The Secretary shall conduct a referendum as soon as practical 
after the end of the fiscal year ending two years after [effective date 
of the final rule], and at such time every fifth year thereafter, to 
ascertain whether continuation of the order is favored by growers who 
have been engaged in the production of almonds for market within the 
State of California during the current crop year.
* * * * *

Sec. 981.467  [Amended]

    26. In Sec. 981.467, paragraph (a) is amended by removing the date 
``July 1'' and adding in its place ``August 1'' and by removing the 
words ``export or'' and ``or both,'' from the second sentence in 
paragraph (a).

Sec. 981.472  [Amended]

    27. In Sec. 981.472, paragraph (a) is amended by removing the dates 
``July 1 to August 31'' and adding in its place ``August 1 to August 
31.''

[FR Doc. 95-26787 Filed 10-27-95; 8:45 am]
BILLING CODE 3410-02-P

Complete official Federal Register PDF

FR Doc. 95-26771 Proposed Amendment of Class E Airspace; Lovelock, NV
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55224-55225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26771]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION
14 CFR Part 71

[Airspace Docket No. 95-AWP-32]

Proposed Amendment of Class E Airspace; Lovelock, NV

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This notice proposes to amend the Class E airspace area at 
Lovelock, NV. The development of a Global Positioning System (GPS) 
Standard Instrument Approach Procedure (SIAP) to Runaway (RWY) 1 has 
made this proposal necessary. The intended effect of this proposal is 
to provide adequate controlled airspace for Instrument Flight Rules 
(IFR) operations at Lovelock Derby Field, Lovelock, NV.

DATES: Comments must be received on or before December 6, 1995.

[[Page 55225]]

ADDRESSES: Send comments on the proposal in triplicate to: Federal 
Aviation Administration, Attn: Manager, System Management Branch, AWP-
530, Docket No. 95-AWP-32, Air Traffic Division, P.O. Box 92007, 
Worldway, Postal Center, Los Angeles, California, 90009.
    The official docket may be examined in the Office of the Assistant 
Chief Counsel, Western Pacific Region, Federal Aviation Administration, 
Room 6007, 15000 Aviation Boulevard, Lawndale, California, 90261.
    An informal docket may also be examined during normal business at 
the Office of the Manager, System Management Branch, Air traffic 
Division at the above address.

FOR FURTHER INFORMATION CONTACT:
Scott Speer, Airspace Specialist, System Management Branch, AWP-530, 
Air Traffic Division, Western-Pacific Region, Federal Aviation 
Administration, 15000 Aviation Boulevard, Lawndale, California, 90261, 
telephone (301) 725-6533.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed 
rulemaking by submitting such written data, views, or arguments as they 
may desire. Comments that provide the factual basis supporting the 
views and suggestions presented are particularly helpful in developing 
reasoned regulatory decisions on the proposal. Comments are 
specifically invited on the overall regulatory, aeronautical, economic, 
environmental, and energy-related aspects of the proposal. 
Communications should identify the airspace docket number and be 
submitted in triplicate to the address listed above. Commenters wishing 
the FAA to acknowledge receipt of their comments on this notice must 
submit with the comments a self-addressed, stamped postcard on which 
the following statement is made: ``Comments to Airspace Docket No. 95-
AWP-32.'' The postcard will be date/time stamped and returned to the 
commenter. All communications received on or before the specified 
closing date for comments will be considered before taking action on 
the proposed rule. The proposal contained in this notice may be changed 
in light of comments received. All comments submitted will be available 
for examination in the System Management Branch, Air Traffic Division, 
at 15000 Aviation Boulevard, Lawndale, California 90261, both before 
and after the closing date for comments. A report summarizing each 
substantive public contract with FAA personnel concerned with this 
rulemaking will be filed in the docket.

Availability of NPRM

    Any person may obtain a copy of this Notice of Proposed Rulemaking 
(NPRM) by submitting a request to the Federal Aviation Administration, 
System Management Branch, P.O. Box 92007, Worldway Postal Center, Los 
Angeles, California 90009. Communications must identify the notice 
number of this NPRM. Persons interested in being placed on a mailing 
list for future NPRM's should also request a copy of Advisory Circular 
No. 11-2A, which described the application procedure.

The Proposal

    The FAA is considering an amendment to part 71 of the Federal 
Aviation Regulations (14 CFR part 71) to amend the Class E airspace 
area at Lovelock, NV. The development of GPS SIAP at Lovelock Derby 
Field has made this proposal necessary. The intended effect of this 
proposal is to provide adequate Class E airspace for aircraft executing 
the GPS RWY 1 SIAP at Lovelock Derby Field, Lovelock, NV. Class E 
airspace designations for airspace areas extending upward from 700 feet 
or more above the surface of the earth are published in Paragraph 6005 
of FAA Order 7400.9C dated August 17, 1995, and effect September 16, 
1995, which is incorporated be reference in 14 CFR 71.1. The Class E 
airspace designation listed in this document would published 
subsequently in this Order.
    The FAA has determined that this proposed regulation only involves 
an established body of technical regulations for which frequent and 
routine amendments are necessary to keep them operationally current. 
Therefore, this proposed regulation--(1) is not a ``significant 
regulatory action'' under Executive Order 12866; (2) is not a 
``significant rule'' under DOT Regulatory Policies and Procedures (44 
FR 1034; February 26, 1979); and (3) does not warrant preparation of a 
Regulatory Evaluation as the anticipated impact is so minimal. Since 
this is a routine matter that will only affect air traffic procedures 
and air navigation, it is certified that this proposed rule would not 
have a significant economic impact on a substantial number of small 
entities under the criteria of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--[AMENDED]

    1. The authority citation for 14 CFR part 71 is revised to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24 
FR 9565, 3 CFR, 1959-1963 Comp., p. 389; 14 CFR 11.69.

Sec. 71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of the Federal 
Aviation Administration Order 7400.9C, Airspace Designations and 
Reporting Points, dated August 17, 1995, and effective September 16, 
1995, is amended as follows:

Paragraph 6005  Class E Airspace Areas Extending Upward From 700 
Feet or More Above the Surface of the Earth

* * * * *

AWP NV E5 Lovelock, NV [Revised]

Lovelock Derby Field, NV
    (Lat. 40 deg.03'59''N, long. 118 deg.33'55''W)
Lovelock VORTAC
    (Lat. 40 deg.07'30''N, long. 118 deg.34'40''W)

    That airspace extending upward from 700 feet above the surface 
within a 4.3-mile radius of Lovelock Derby Field and within 3.5 
miles each side of the 349 deg. radial of the Lovelock VORTAC, 
extending from the 4.3-mile radius to 10.4 miles north of the 
Lovelock VORTAC. That airspace extending upward from 1,200 feet 
above the surface beginning at lat. 40 deg.37'30''N, long. 
118 deg.36'34''W; to lat. 40 deg.12'00''N, long. 118 deg.55'04''W; 
to lat. 40 deg.03'00''N, long. 118 deg.52'04''W; to lat. 
40 deg.18'00''N, long. 118 deg.22'34''W; to lat. 40 deg.27'00''N, 
long. 118 deg.34'04'', to the point of beginning and that airspace 
beginning at lat. 40 deg.05'00''N, long. 118 deg.28'29''W; to lat. 
40 deg.06'00''N, long. 118 deg.23'04''; to lat. 40 deg.03'00''N, 
long. 118 deg.22'04''W; to lat. 40 deg.00'00''N, long. 
118 deg.31'44'', thence via a 4.3-mile radius of Derby Field to the 
point of beginning and that airspace bounded by a line beginning at 
lat. 40 deg.23'00''N, long. 118 deg.29'00''W; to lat. 
40 deg.32'00''N, long. 118 deg.14'00''W; to lat. 40 deg.22'00''N, 
long. 118 deg.14'00''W; to lat. 40 deg.18'00''N, long. 
118 deg.23'00''W; thence to the point of beginning.
* * * * *
    Issued in Los Angeles, California, on October 16, 1995.
Richard R. Lien,
Manager, Air Traffic Division, Western-Pacific Region.
[FR Doc. 95-26771 Filed 10-27-95; 8:45 am]
BILLING CODE 4910-13-M

Complete official Federal Register PDF

FR Doc. 95-26770 Special Condition: Israel Aircraft Industries (IAI), Model Galaxy, High-Intensity Radiated Fields
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55220-55222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26770]

=======================================================================
-----------------------------------------------------------------------

[[Page 55221]]

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. NM-118; Notice No. SC-95-6-NM]

Special Condition: Israel Aircraft Industries (IAI), Model 
Galaxy, High-Intensity Radiated Fields

AGENCY: Federal Aviation Administration, DOT.

ACTION: Notice of proposed special conditions.

-----------------------------------------------------------------------

SUMMARY: This notice proposes special conditions for the Israel 
Aircraft Industries (IAI) Model Galaxy airplane. This new airplane will 
utilize new avionics/electronic systems, such as electronic displays 
and electronic engine controls, that perform critical functions. The 
applicable regulations do not contain adequate or appropriate safety 
standards for the protection of these systems from the effects of high-
intensity radiated fields (HIRF). These proposed special conditions 
contain the additional safety standards that the Administrator 
considers necessary to establish a level of safety equivalent to that 
established by the existing airworthiness standards.

DATES: Comments must be received on or before December 14, 1995.

ADDRESSES: Comments on this proposal may be mailed in duplicate to: 
Federal Aviation Administration, Office of the Assistant Chief Counsel, 
Attn: Rules Docket (ANM-7), Docket No. NM-118, 1601 Lind Avenue SW., 
Renton, Washington, 98055-4056; or delivered in duplicate to the Office 
of the Assistant Chief Counsel at the above address. Comments must be 
marked: Docket No. NM-118. Comments may be inspected in the Rules 
Docket weekdays, except Federal holidays, between 7:30 a.m. and 4:00 
p.m.

FOR FURTHER INFORMATION CONTACT: Timothy Dulin, FAA, Standardization 
Branch, ANM-113, Transport Airplane Directorate, Aircraft Certification 
Service, 1601 Lind Avenue SW., Renton, Washington, 98055-4056; 
telephone (206) 227-2141; facsimile (206) 227-1149.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested persons are invited to participate in the making of 
these proposed special conditions by submitting such written data, 
views, or arguments as they may desire. Communications should identify 
the regulatory docket or notice number and be submitted in duplicate to 
the address specified above. All communications received on or before 
the closing date for comments will be considered by the Administrator 
before further rulemaking action is taken on these proposals. The 
proposals contained in this notice may be changed in light of comments 
received. All comments submitted will be available in the Rule Docket 
for examination by interested persons, both before and after the 
closing date for comments. A report summarizing each substantive public 
contact with FAA personnel concerning this rulemaking will be filed in 
the docket. Persons wishing the FAA to acknowledge receipt of their 
comments submitted in response to this notice must submit with those 
comments a self-addressed, stamped postcard on which the following 
statement is made: ``Comments to Docket No. NM-118.'' The postcard will 
be date stamped and returned to the commenter.

Background

    On July 29, 1992, Israel Aircraft Industries (IAI), Ben Gurion 
International Airport, Tel Aviv 70100, Israel, applied for a new type 
certificate in the transport airplane category for the Model Galaxy 
airplane. On April 19, 1995, IAI applied for an extension of the 
original application and selected June 21, 1994, as the new reference 
date of application. The Model Galaxy is a derivative of the IAI Model 
1125 Westwind Astra and is designed to be a long-range, high-speed 
airplane with a swept low wing and two aft-fuselage-mounted Pratt & 
Whitney Canada (PWC) 306A engines. The Model Galaxy will have a maximum 
takeoff weight of 33,450 pounds, a conventional empennage, a crew of 
two, and will be operated as an executive/corporate or commuter 
airplane with a maximum seating capacity of 19 passengers.

Type Certification Basis

    Under the provisions of Sec. 21.17, IAI must show, except as 
provided in Sec. 25.2, that the Model Galaxy meets the applicable 
provisions of part 25, effective February 1, 1965, as amended by 
Amendments 25-1 through 25-82. In addition, the proposed certification 
basis for the Model Galaxy includes part 34, effective September 10, 
1990, including all amendments in effect at the time of certification; 
and part 36, effective December 1, 1969, including all amendments in 
effect at the time of certification. No exemptions are anticipated. The 
special conditions that may be developed as a result of this notice 
will form an additional part of the type certification basis. In 
addition, the certification basis may include other special conditions 
that are not relevant to these proposed special conditions.
    If the Administrator finds that the applicable airworthiness 
regulations (i.e., part 25, as amended) do not contain adequate or 
appropriate safety standards for the Model Galaxy because of a novel or 
unusual design feature, special conditions are prescribed under the 
provisions of Sec. 21.16 to establish a level of safety equivalent to 
that established in the regulations.
    Special conditions, as appropriate, are issued in accordance with 
Sec. 11.49 of the FAR after public notice, as required by Secs. 11.28 
and 11.29, and become part of the type certification basis in 
accordance with Sec. 21.17(a)(2).
    In addition to the applicable airworthiness regulations and special 
conditions, the Model Galaxy must comply with the fuel vent and exhaust 
emission requirements of part 34 and the noise certification 
requirements of part 36, and the FAA must issue a finding of regulatory 
adequacy pursuant to Sec. 611 of Public Law 92-574, the ``Noise Control 
Act of 1972.''
    Special conditions are initially applicable to the model for which 
they are issued. Should the type certificate for that model be amended 
later to include any other model that incorporates the same novel or 
unusual design feature, the special conditions would also apply to the 
other model under the provisions of Sec. 21.101(a)(1).
Novel or Unusual Design Features
    The Model Galaxy airplane incorporates new avionic/electronic 
systems, such as electronic displays and electronic engine controls, 
that perform critical functions. These systems may be vulnerable to 
high-intensity radiated fields external to the airplane.
Discussion
    There is no specific regulation that addresses protection 
requirements for electrical and electronic systems from HIRF. Increased 
power levels from ground-based radio transmitters and the growing use 
of sensitive electrical and electronic systems to command and control 
airplanes have made it necessary to provide adequate protection.
    To ensure that a level of safety is achieved equivalent to that 
intended by the applicable regulations, special conditions are proposed 
for the IAI Galaxy that would require that electrical and electronic 
systems which perform critical functions be designed and installed to 
preclude component damage and interruption of function due to both the 
direct and indirect effects of HIRF. 

[[Page 55222]]

High-Intensity Radiated Fields (HIRF)

    With the trend toward increased power levels from ground-based 
transmitters, plus the advent of space and satellite communications, 
coupled with electronic command and control of the airplane, the 
immunity of critical digital avionics systems to HIRF must be 
established.
    It is not possible to precisely define the HIRF to which the 
airplane will be exposed in service. There is also uncertainty 
concerning the effectiveness of airframe shielding for HIRF. 
Furthermore, coupling of electromagnetic energy to cockpit-installed 
equipment through the cockpit window apertures is undefined. Based on 
surveys and analysis of existing HIRF emitters, an adequate level of 
protection exists when compliance with the HIRF protection special 
condition is shown with either paragraphs 1 OR 2 below:
    1. A minimum threat of 100 volts per meter peak electric field 
strength from 10 KHz to 18 GHz.
    a. The threat must be applied to the system elements and their 
associated wiring harnesses without the benefit of airframe shielding.
    b. Demonstration of this level of protection is established through 
system tests and analysis.
    2. A threat external to the airframe of the following field 
strengths for the frequency ranges indicted.

------------------------------------------------------------------------
                                                    Peak  (V/   Average 
                     Frequency                          M)       (V/M)  
------------------------------------------------------------------------
10 KHz-100 KHz....................................         50         50
100 KHz-500 KHz...................................         60         60
500 KHz-2 MHz.....................................         70         70
2 MHz-30 MHz......................................        200        200
30 MHz-100 MHz....................................         30         30
100 MHz-200 MHz...................................        150         33
200 MHz-400 MHz...................................         70         70
400 MHz-700 MHz...................................      4,020        935
700 MHz-1 GHz.....................................      1,700        170
1 GHz-2 GHz.......................................      5,000        990
2 GHz-4 GHz.......................................      6,680        840
4 GHz-6 GHz.......................................      6,850        310
6 GHz-8 GHz.......................................      3,600        670
8 GHz-12 GHz......................................      3,500      1,270
12 GHz-18 GHz.....................................      3,500        360
18 GHz-40 GHz.....................................      2,100        750
------------------------------------------------------------------------

    As discussed above, the proposed special conditions would be 
applicable initially to the IAI Model Galaxy. Should IAI apply at a 
later date for a change to the type certificate to include another 
model incorporating the same novel or unusual design feature, the 
special conditions would apply to that model as well, under the 
provisions of Sec. 21.101(a)(1).

Conclusion

    This action affects certain design features only on the IAI Galaxy 
airplane. It is not a rule of general applicability and affects only 
the manufacturer who applied to the FAA for approval of these features 
on the airplane.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and record keeping 
requirements.

    The authority citation for this special condition is as follows: 
Authority: 49 U.S.C. app. 1344, 1354(a), 1355, 1421, 1423, 1424, 1425, 
1428, 1429, 1430, and 49 U.S.C. 106(g).

The Proposed Special Condition

    Accordingly, the Federal Aviation Administration (FAA) proposes the 
following special condition as part of the type certification basis for 
the IAI Model Galaxy airplanes. 1. Protection from Unwanted Effects of 
High-Intensity Radiated Fields (HIRF). Each electrical and electronic 
system that performs critical functions must be designed and installed 
to ensure that the operation and operational capability of these 
systems to perform critical functions are not adversely affected when 
the airplane is exposed to high-intensity radiated fields.
    For the purpose of this special condition, the following definition 
applies:
    Critical Functions. Functions whose failure would contribute to or 
cause a failure condition that would prevent the continued safe flight 
and landing of the airplane.

    Issued in Renton, Washington, on October 13, 1995.
Darrell M. Pederson,
Acting Manager, Transport Airplane Directorate, Aircraft Certification 
Service, ANM-100.
[FR Doc. 95-26770 Filed 10-27-95; 8:45 am]
BILLING CODE 4910-13-M

Complete official Federal Register PDF

FR Doc. 95-26768 Proposed Establishment of Class D Airspace and Amendment of Class E Airspace; Elko, NV
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55222-55223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26768]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION
14 CFR Part 71

[Airspace Docket No. 95-AWP-30]

Proposed Establishment of Class D Airspace and Amendment of Class 
E Airspace; Elko, NV

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This notice proposes to establish a Class D and amend Class E 
airspace at Elko Municipal-J.C. Harris Field, Elko, NV. The development 
of a Global Positioning System (GPS) Standard Instrument Approach 
Procedure (SIAP) to Runway (RWY) 5 and establishment of a Airport 
Traffic Control Tower has made this proposal necessary.

DATES: Comments must be received on or before December 4, 1995.

ADDRESSES: Send comments on the proposal in triplicate to: Federal 
Aviation Administration, Attn: Manager, System Management Branch, AWP-
530, Docket No. 95-AWP-30, Air Traffic Division, P.O. Box 92007, 
Worldway Postal Center, Los Angeles CA 90009.
    The official docket may be examined in the Office of the Assistant 
Chief Counsel, Western Pacific Region, Federal Aviation Administration, 
Room 6007, 15000 Aviation Blvd., Lawndale, CA 90261.
    An informal docket may also be examined during normal business at 
the Office of the Manager, System Management Branch, Air Traffic 
Division at the above address.

FOR FURTHER INFORMATION CONTACT:
Scott Speer, Airspace Specialist, System Management Branch, AWP-530, 
Air Traffic Division, Western-Pacific Region, Federal Aviation 
Administration, 15000 Aviation Blvd., Lawndale, CA 90261, telephone 
(310) 725-6533.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed 
rulemaking by submitting such written data, views, or arguments as they 
may desire. Comments that provide the factual basis supporting the 
views and suggestions presented are particularly helpful in developing 
reasoned regulatory decisions on the proposal. Comments are 
specifically invited on the overall regulatory, aeronautical, economic, 
environmental, and energy-related aspects of the proposal. 
Communications should identify the airspace docket number and be 
submitted in triplicate to the address listed above. Commenters wishing 
the FAA to acknowledge receipt of their comments on this notice must 
submit with the comments a self-addressed, stamped postcard on which 
the following statement is made: ``Comments to Airspace Docket No. 95-
AWP-30.'' The postcard will be date/time stamped and returned to the 
commenter. All communications received on or before the specified 
closing date for comments will be considered before taking action on 
the proposed rule. The proposal contained in this notice may be changed 
in light of comments received. All comments submitted will be available 
for examination in the System Management Branch, Air Traffic Division, 
at 15000 Aviation Blvd., Lawndale, CA 90261, 

[[Page 55223]]
both before and after the closing date for comments. A report 
summarizing each substantive public contact with FAA personnel 
concerned with this rulemaking will be filed in the docket.

Availability of NPRM

    Any person may obtain a copy of this Notice of Proposed Rulemaking 
(NPRM) by submitting a request to the Federal Aviation Administration, 
System Management Branch, P.O. Box 92007, Worldway Postal Center, Los 
Angeles, California 90009. Communications must identify the notice 
number of this NPRM. Persons interested in being placed on a mailing 
list for future NPRM's should also request a copy of Advisory Circular 
No. 11-2A, which describes the application procedures.

The Proposal

    The FAA is considering an amendment to part 71 of the Federal 
Aviation Regulations (14 CFR part 71), to establish a Class D and amend 
Class E airspace at Elko, NV. The development of GPS SIAP and 
establishment of an Airport Traffic Control Tower at Elko Municipal-
J.C. Harris Field has made this proposal necessary. Class D and Class E 
airspace designations are published in Paragraphs 5000, 6002, and 6005 
of FAA Order 7400.9C dated August 17, 1995, and effective September 16, 
1995, which is incorporated by reference in 14 CFR 71.1. The Class D 
and E airspace designations listed in this document would be published 
subsequently in this Order.
    The FAA has determined that this proposed regulation only involves 
an established body of technical regulations for which frequent and 
routine amendments are necessary to keep them operationally current. 
Therefore, this proposed regulation--(1) is not a ``significant 
regulatory action'' under Executive Order 12866; (2) is not a 
``significant rule'' under DOT Regulatory Policies and Procedures (44 
FR 10034; February 26, 1979); and (3) does not warrant preparation of a 
Regulatory Evaluation as the anticipated impact is so minimal. Since 
this is a routine matter that will only affect air traffic procedures 
and air navigation, it is certified that this proposed rule would not 
have a significant economic impact on a substantial number of small 
entities under the criteria of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--[AMENDED]

    1. The authority citation for 14 CFR part 71 is revised to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E. O. 10854, 
24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389; 14 CFR 11.69.

Sec. 71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of the Federal 
Aviation Administration Order 7400.9C, Airspace Designations and 
Reporting Points, dated August 17, 1995, and effective September 16, 
1995, is amended as follows:

Paragraph 5000  Class D Airspace

* * * * *

AWP NV D Elko, NV [New]

Elko Municipal-J.C. Harris Field, NV
    (Lat. 40 deg.49'31''N, long 115 deg.47'28''W)

    That airspace extending upward from the surface to including 
7,700 feet MSL within a 4.3-mile radius of Elko Municipal-J.C. 
Harris Field and within 1.8 miles each side of the 248 deg. bearing 
from the Elko Municipal-J.C. Harris Field, extending from the 4.3-
mile radius to 6 miles southwest of the airport. This Class D 
airspace area is effective during the specific dates and times 
established in advanced by a Notice to Airmen. The effective date 
and time will thereafter be continuously published in the Airport/
Facility Directory.
* * * * *

Paragraph 6002  Class E Airspace Areas Designated as a Surface Area 
for an Airport

* * * * *

AWP NV E2, Elko, NV [Revised]

Elko Municipal-J.C. Harris Field, NV
    (Lat. 40 deg.49'31''N, long. 115 deg.47'28''W)

    Within a 4.3-mile radius of the Elko Municipal-J.C. Harris Field 
and within 1.8 miles each side of the 248 deg. bearing from the Elko 
Municipal-J.C. Harris Field, extending from the 4.3-mile radius to 6 
miles southwest of the Elko Municipal-J.C. Harris Field and within 
1.8 miles each side of the 075 deg. bearing from the Elko Municipal-
J.C. Harris Field, extending from the 4.3-mile radius to 8.3 miles 
northeast of the airport. This Class E airspace area is effective 
during the specific dates and times established in advanced by a 
Notice to Airmen. The effective date and time will thereafter be 
continuously published in the Airport/Facility Directory.
* * * * *

Paragraph 6005  Class E Airspace Areas Extending Upward From 700 
Feet or More Above the Surface of the Earth

* * * * *

AWP NV E5 Elko, NV [Revised]

Elko Municipal-J.C. Harris Field, NV
    (Lat. 40 deg.49'31''N, long. 115 deg.47'28''W)

    That airspace extending upward from 700 feet above the surface 
within an 8.3-mile radius of Elko Municipal-J.C. Harris Field and 
within 1.8 miles either side of 248 deg. bearing from the Elko 
Municipal-J.C. Harris Field, extending from the 8.3-mile radius to 
the 11.7 miles southwest of the Elko Municipal-J.C. Harris Field and 
within 3.9 miles east and 8.3 miles west of the 161 deg. bearing 
from the Elko Municipal-J.C. Harris Field, extending from the 8.3-
mile radius to 21.7 miles south of Elko Municipal-J.C. Harris Field 
and within 4.3 miles each side of the 075 deg. bearing from the Elko 
Municipal-J.C. Harris Field, extending from the 8.3-mile radius to 
17.8 miles northeast of the airport. That airspace extending upward 
from 1,200 feet above the surface within an 18.7 mile radius of Elko 
Municipal-J.C. Harris Field, and that airspace bounded on the north 
by the south edge of V-6, on the south by the north edge of V-32, on 
the east by the 18.7-mile radius west of the Elko Municipal-J.C. 
Harris Field and that airspace bounded by a line beginning at lat. 
40 deg.34'00''N, long. 116 deg.00'00''W; to lat. 40 deg.27'00''N, 
long. 116 deg.36'00''W; to lat. 40 deg.31'00''N, long. 
116 deg.38'00''N; to lat. 40 deg.32'00''N, long. 116 deg.33'00''W; 
to lat. 40 deg.33'30''N, long. 116 deg.33'30''W; to lat. 
40 deg.38'00''N, long. 116 deg.07'00''W, thence via the 18.7-mile 
radius of Elko Municipal-J.C. Harris Field to the point of 
beginning.
* * * * *
    Issued in Los Angeles, California, on October 16, 1995.
Richard R. Lien,
Manager, Air Traffic Division, Western-Pacific Region.
[FR Doc. 95-26768 Filed 10-27-95; 8:45 am]
BILLING CODE 4910-13-M

Complete official Federal Register PDF

FR Doc. 95-26767 Proposed Amendment of Class E Airspace; Britton, SD, Britton Municipal Airport
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55225-55227]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26767]

-----------------------------------------------------------------------

[[Page 55226]]

DEPARTMENT OF TRANSPORTATION
14 CFR Part 71

[Airspace Docket No. 95-AGL-14]

Proposed Amendment of Class E Airspace; Britton, SD, Britton 
Municipal Airport

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This notice proposes to amend the Class E airspace at Britton, 
SD. A nondirectional radio beacon (NDB) or Global Positioning System 
(GPS) standard instrument approach procedure (SIAP) to Runway 13 has 
been revised for the Britton Municipal Airport. Controlled airspace 
extending upward from 700 and 1200 feet above ground level (AGL) is 
needed for aircraft executing the approach.

DATES: Comments must be received on or before December 7, 1995.

ADDRESSES: Send comments on the proposal in triplicate to: Federal 
Aviation Administration, Office of the Assistant Chief Counsel, AGL-7, 
Rules Docket No. 95-AGL-14, 2300 East Devon Avenue, Des Plaines, 
Illinois 60018.
    The official docket may be examined in the Office of the Assistant 
Chief Counsel, Federal Aviation Administration, 2300 East Devon Avenue, 
Des Plaines, Illinois. An informal docket may also be examined during 
normal business hours at the Air Traffic Division, System Management 
Branch, Federal Aviation Administration, 2300 East Devon Avenue, Des 
Plaines, Illinois.

FOR FURTHER INFORMATION CONTACT: William W. Kribble, Air Traffic 
Division, System Management Branch, AGL-530, Federal Aviation 
Administration, 2300 East Devon Avenue, Des Plaines, Illinois 60018, 
telephone (708) 294-7568.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed 
rulemaking by submitting such written data, views, or arguments as they 
may desire. Comments that provide the factual basis supporting the 
views and suggestions presented are particularly helpful in developing 
reasoned regulatory decisions on the proposal. Comments are 
specifically invited on the overall regulatory, aeronautical, economic, 
environmental, and energy-related aspects of the proposal. 
Communications should identify the airspace docket number and be 
submitted in triplicate to the address listed above. Commenters wishing 
the FAA to acknowledge receipt of their comments on this notice must 
submit with those comments a self-addressed, stamped postcard on which 
the following statement is made: ``Comments to Airspace Docket No. 95-
AGL-14.'' The postcard will be date/time stamped and returned to the 
commenter. All communications received on or before the specified 
closing date for comments will be considered before taking action on 
the proposed rule. The proposal contained in this notice may be changed 
in light of comments received. All comments submitted will be available 
for examination in the Rules Docket, FAA, Great Lakes Region, Office of 
the Assistant Chief Counsel, 2300 East Devon Avenue, Des Plaines, 
Illinois, both before and after the closing date for comments. A report 
summarizing each substantive public contact with FAA personnel 
concerned with this rulemaking will be filed in the docket.

Availability of NPRM's

    Any person may obtain a copy of the Notice of Proposed Rulemaking 
(NPRM) by submitting a request to the Federal Aviation Administration, 
Office of Public Affairs, Attention: Public Inquiry Center, APA-230, 
800 Independence Avenue, S.W., Washington, DC 20591, or by calling 
(202) 267-3484. Communications must identify the notice number of this 
NPRM. Persons interested in being placed on a mailing list for future 
NPRM's should also request a copy of Advisory Circular No. 11-2A, which 
describes the application procedure.

The Proposal

    The FAA is considering an amendment to part 71 of the Federal 
Aviation Regulations (14 CFR part 71) to amend Class E airspace at 
Britton, SD. This proposal would provide adequate Class E airspace for 
IFR operators executing the NDB or GPS Runway 13 SIAP at Britton 
Municipal Airport. Controlled airspace extending from 700 and 1200 feet 
AGL is needed for aircraft executing the approach. The area would be 
depicted on appropriate aeronautical charts thereby enabling pilots to 
circumnavigate the area or otherwise comply with IFR procedures. Class 
E airspace designations for airspace areas extending upward from 700 
feet or more above the surface of the earth are published in paragraph 
6005 of FAA Order 7400.9C dated August 17, 1995, and effective 
September 16, 1995, which is incorporated by reference in 14 CFR 71.1. 
The Class E airspace designation listed in this document would be 
published subsequently in the Order.
    The FAA has determined that this proposed regulation only involves 
an established body of technical regulations for which frequent and 
routine amendments are necessary to keep them operationally current. 
Therefore this, proposed regulation--(1) Is not a ``significant 
regulatory action'' under Executive Order 12866; (2) is not a 
``significant rule'' under DOT Regulatory Policies and Procedures (44 
FR 11034; February 26, 1979); and (3) does not warrant preparation of a 
Regulatory Evaluation as the anticipated impact is so minimal. Since 
this is a routine matter that will only affect air traffic procedures 
and air navigation, it is certified that this proposed rule will not 
have a significant economic impact on a substantial number of small 
entities under the criteria of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal 
Aviation Administration proposes to amend part 71 of the Federal 
Aviation Regulations (14 CFR part 71) as follows:

PART 71--[AMENDED]

    1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g) 40103, 40113, 40120; E.O. 10854, 24 
FR 9565, 3 CFR, 1959-1963 Comp., p. 389; 14 CFR 11.69.

Sec. 71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of the Federal 
Aviation Administration Order 7400.9C, Airspace Designations and 
Reporting Points, dated August 17, 1995, and effective September 16, 
1995, is amended as follows:

Paragraph 6005  Class E Airspace Areas Extending From 700 Feet or 
More Above the Surface of the Earth

* * * * *

AGL SD E5 Britton, SD [Revised]

    (lat. 45 deg.48'57''N, long. 97 deg.44'39''W)

    That airspace extending upward from 700 feet above the surface 
within a 7-mile radius of the Britton Municipal Airport and that 
airspace extending upward from 1,200 feet above the surface bounded 
on the west by long. 983000W, on the north by lat. 463000N, on the 
east by long. 970000W, and on the south by lat. 443000N, excluding 
the Fargo, ND; Watertown, SD, Huron, SD; Aberdeen, SD; 1,200 foot 
Class E airspace areas and all federal airways.
* * * * *

[[Page 55227]]

    Issued in Des Plaines, Illinois on October 12, 1995.
Maureen Woods,
Acting Manager, Air Traffic Division.
[FR Doc. 95-26767 Filed 10-17-95; 8:45 am]
BILLING CODE 4910-13-M

Complete official Federal Register PDF

FR Doc. 95-26763 Proposed Establishment of Class E Airspace; Eagle Butte, SD, Cheyenne Eagle Butte Airport
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55227-55228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26763]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION
14 CFR Part 71

[Airspace Docket No. 95-AGL-13]

Proposed Establishment of Class E Airspace; Eagle Butte, SD, 
Cheyenne Eagle Butte Airport

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This notice proposes to establish Class E airspace at Eagle 
Butte, SD. A Global Positioning System (GPS) standard instrument 
approach procedure (SIAP) to Runway 31 has been developed for the 
Cheyenne Eagle Butte Airport. Controlled airspace extending upward from 
700 feet above ground level (AGL) and from 1200 feet AGL is needed for 
aircraft executing the approach.

DATES: Comments must be received on or before December 12, 1995.

ADDRESSES: Send comments on the proposal in triplicate to: Federal 
Aviation Administration, Office of the Assistant Chief Counsel, AGL-7, 
Rules Docket No. 95-AGL-13, 2300 East Devon Avenue, Des Plaines, 
Illinois 60018.
    The official docket may be examined in the Office of the Assistant 
Chief Counsel, Federal Aviation Administration, 2300 East Devon Avenue, 
Des Plaines, Illinois. An informal docket may also be examined during 
normal business hours at the Air Traffic Division, System Management 
Branch, Federal Aviation Administration, 2300 East Devon Avenue, Des 
Plaines, Illinois.

FOR FURTHER INFORMATION CONTACT:
William W. Kribble, Air Traffic Division, System Management Branch, 
AGL-530, Federal Aviation Administration, 2300 East Devon Avenue, Des 
Plaines, Illinois 60018, telephone (708) 294-7568.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed 
rulemaking by submitting such written data, views, or arguments as they 
may desire. Comments that provide the factual basis supporting the 
views and suggestions presented are particularly helpful in developing 
reasoned regulatory decisions on the proposal. Comments are 
specifically invited on the overall regulatory, aeronautical, economic, 
environmental, and energy-related aspects of the proposal. 
Communications should identify the airspace docket number and be 
submitted in triplicate to the address listed above. Commenters wishing 
the FAA to acknowledge receipt of their comments on this notice must 
submit with those comments a self-addressed, stamped postcard on which 
the following statement is made: ``Comments to Airspace Docket No. 95-
AGL-13.'' The postcard will be date/time stamped and returned to the 
commenter. All communications received on or before the specified 
closing date for comments will be considered before taking action on 
the proposed rule. The proposal contained in this notice may be changed 
in light of comments received. All comments submitted will be available 
for examination in the Rules Docket, FAA, Great Lakes Region, Office of 
the Assistant Chief Counsel, 2300 East Devon Avenue, Des Plaines, 
Illinois, both before and after the closing date for comments. A report 
summarizing each substantive public contact with FAA personnel 
concerned with this rulemaking will be filed in the docket.

Availability of NPRM's

    Any person may obtain a copy of the Notice of Proposed Rulemaking 
(NPRM) by submitting a request to the Federal Aviation Administration, 
Office of Public Affairs, Attention: Public Inquiry Center, APA-230, 
800 Independence Avenue, SW., Washington, DC 20591, or by calling (202) 
267-3484. Communications must identify the notice number of this NPRM. 
Persons interested in being placed on a mailing list for future NPRM's 
should also request a copy of Advisory Circular No. 11-2A, which 
describes the application procedure.

The Proposal

    The FAA is considering an amendment to part 71 of the Federal 
Aviation Regulations (14 CFR part 71) to establish Class E airspace at 
Eagle Butte, SD. This proposal would provide adequate Class E airspace 
for operators executing the GPS Runway 31 SIAP at Cheyenne Eagle Butte 
Airport. Controlled airspace extending from 700 feet AGL and 1200 feet 
AGL is needed for aircraft executing the approach. The area would be 
depicted on appropriate aeronautical charts thereby enabling pilots to 
circumnavigate the area or otherwise comply with IFR procedures. Class 
E airspace designations for airspace areas extending upward from 700 
feet or more above the surface of the earth are published in paragraph 
6005 of FAA Order 7400.9C dated August 17, 1995, and effective 
September 16, 1995, which is incorporated by reference in 14 CFR 71.1. 
The Class E airspace designation listed in this document would be 
published subsequently in the Order.
    The FAA has determined that this proposed regulation only involves 
an established body of technical regulations for which frequent and 
routine amendments are necessary to keep them operationally current. 
Therefore this, proposed regulation--(1) is not a ``significant 
regulatory action'' under Executive Order 12866; (2) is not a 
``significant rule'' under DOT Regulatory Policies and Procedures (44 
FR 11034; February 26, 1979); and (3) does not warrant preparation of a 
Regulatory Evaluation as the anticipated impact is so minimal. Since 
this is a routine matter that will only affect air traffic procedures 
and air navigation, it is certified that this proposed rule will not 
have a significant economic impact on a substantial number of small 
entities under the criteria of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal 
Aviation Administration proposes to amend part 71 of the Federal 
Aviation Regulations (14 CFR part 71) as follows:

PART 71--[AMENDED]

    1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24 
FR 9565, 3 CFR, 1959-1963 Comp., p. 389; 14 CFR 11.69.

Sec. 71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of the Federal 
Aviation Administration Order 7400.9C, Airspace Designations and 
Reporting Points, dated August 17, 1995, and effective September 16, 
1995, is amended as follows:

Paragraph 6005  Class E Airspace Areas Extending Upward From 700 
Feet or More Above the Surface of the Earth

* * * * *

AGL SD E5 Eagle Butte, SD [New]

    (lat. 44 deg.59'06'' N, long. 101 deg.15'07'' W)

    That airspace extending upward from 700 feet above the surface 
within a 7-mile radius of the Cheyenne Eagle Butte Airport and that 

[[Page 55228]]
airspace extending upward from 1,200 feet above the surface from the 7-
mile radius to 9 miles northwest of the airport clockwise from V120 
to V344 and from the 7-mile radius to the 19-mile radius east of the 
airport clockwise from V344 to V120.
* * * * *
    Issued in Des Plaines, Illinois on October 14, 1995.
Maureen Woods,
Acting Manager, Air Traffic Division.
[FR Doc. 95-26763 Filed 10-27-95; 8:45 am]
BILLING CODE 4910-13-M

Complete official Federal Register PDF

FR Doc. 95-26762 Proposed Amendment to Class E Airspace; Omaha, Millard Airport, NE
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55223-55224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26762]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION
14 CFR Part 71

[Airspace Docket No. 95-ACE-10]

Proposed Amendment to Class E Airspace; Omaha, Millard Airport, 
NE

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This notice proposes to amend the Class E airspace area at 
Omaha, Millard Airport, NE. The development of a new Standard 
Instrument Approach Procedure (SIAP) based on the Global Positioning 
System has made the proposal necessary. The intended effect of this 
proposal is to provide an additional .4 mile of controlled airspace for 
aircraft executing the SIAP at Omaha, Millard Airport, NE.

DATES: Comments must be received on or before December 1, 1995.

ADDRESSES: Send comments on the proposal in triplicate to: Manager, Air 

[[Page 55224]]
Traffic Operations Branch, ACE-530, Federal Aviation Administration, 
Docket No. 95-ACE-10, 601 East 12th Street, Kansas City, MO 64106.
    The official docket may be examined in the Office of the Assistant 
Chief Counsel for the Central Region at the same address between 9:00 
a.m. and 3:00 p.m., Monday through Friday, except Federal holidays.
    An informal docket may also be examined during normal business 
hours in the office of the Manager, Air Traffic Operations Branch, Air 
Traffic Division, at the address listed above.

FOR FURTHER INFORMATION CONTACT:
Kathy Randolph, Air Traffic Division, Air Traffic Operations Branch, 
ACE-530C, Federal Aviation Administration, 601 East 12th Street, Kansas 
City, Missouri 64106; telephone number: (816) 426-3408.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed 
rulemaking by submitting such written data, views, or arguments as they 
may desire. Comments that provide the factual basis supporting the 
views and suggestions presented are particularly helpful in developing 
reasoned regulatory decisions on the proposal. Comments are 
specifically invited on the overall regulatory, economic, 
environmental, and energy-related aspects of the proposal. 
Communications should identify the airspace docket number and be 
submitted in triplicate to the address listed above. Commenters wishing 
the FAA to acknowledge receipt of their comments on this notice must 
submit with those comments a self-addressed, stamped postcard on which 
the following statement is made: ``Comments to Airspace Docket No. 95-
ACE-10.'' The postcard will be date/time stamped and returned to the 
commenter. All communications received on or before the closing date 
for comments will be considered before taking action on the proposed 
rule. The proposal contained in this notice may be changed in light of 
comments received. All comments submitted will be available for 
examination in the Rules Docket both before and after the closing date 
for comments. A report summarizing each substantive public contact with 
FAA personnel concerned with this rulemaking will be filed in the 
docket.

Availability of NPRMs

    Any person may obtain a copy of this Notice of Proposed Rulemaking 
(NPRM) by submitting a request to the Federal Aviation Administration, 
Office of Public Affairs, Attention: Public Inquiry Center, APA-230, 
800 Independence Avenue, SW, Washington, DC 20591, or by calling (202) 
267-3484. Communications must identify the notice number of this NPRM. 
Persons interested in being placed on a mailing list for future NPRMs 
should also request a copy of Advisory Circular No. 11-2A, which 
describes the procedures.

The Proposal

    The FAA is considering an amendment to part 71 of the Federal 
Aviation Regulations (14 CFR part 71) to provide additional controlled 
airspace for a new Instrument Flight Rules (IFR) procedure at the 
Omaha, Millard Airport. The additional airspace would segregate 
aircraft operating under VFR conditions from aircraft operating under 
IFR procedures. The area would be depicted on appropriate aeronautical 
charts thereby enabling pilots to circumnavigate the area or otherwise 
comply with IFR procedures. Class E airspace designations for airspace 
areas extending upward from 700 feet or more above the surface of the 
earth are published in paragraph 6005 of FAA Order 7400.9C, dated 
August 17, 1995, and effective September 16, 1995, which is 
incorporated by reference in 14 CFR 71.1. The Class E airspace 
designation listed in this document would be published subsequently in 
the Order.
    The FAA has determined that this proposed regulation only involves 
an established body of technical regulations for which frequent and 
routine amendments are necessary to keep them operationally current. 
Therefore, this proposed regulation--(1) is not a ``significant 
regulatory action'' under Executive Order 12866; (2) is not a 
``significant rule'' under DOT Regulatory Policies and Procedures (44 
FR 11034; February 26, 1979); and (3) does not warrant preparation of a 
Regulatory Evaluation as the anticipated impact is so minimal. Since 
this is a routine matter that will only affect air traffic procedures 
and air navigation, it is certified that this proposed rule will not 
have a significant economic impact on a substantial number of small 
entities under the criteria of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal 
Aviation Administration proposes to amend part 71 of the Federal 
Aviation Regulations (14 CFR part 71) as follows:

PART 71--[AMENDED]

    1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24 
FR 9565, 3 CFR, 1959-1963 Comp., p. 389; 14 CFR 11.69.

Sec. 71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of Federal 
Aviation Administration Order 7400.9C, Airspace Designations and 
Reporting Points, dated August 17, 1995, and effective September 16, 
1995, is amended as follows:

Paragraph 6005  Class E Airspace Areas Extending Upward From 700 
Feet or More Above the Surface of the Earth

* * * * *

ACE NE E5 Omaha, Millard Airport, NE [Revised]

Omaha, Millard Airport, NE
    (Lat. 41 deg.11'46''N, long. 96 deg.06'44''W)
Millard NDB
    (Lat. 41 deg.11'42''N, long. 96 deg.06'51''W)

    That airspace extending upward from 700 feet above the surface 
within a 6.4-mile radius of Millard Airport and within 4.4 miles 
each side of the 316 deg. bearing from the Millard NDB extending 
from the 6.4-mile radius to 8.3 miles northwest of the airport, 
excluding that airspace which lies within the Eppley Airfield And 
Offutt Air Force Base E5 airspace.
* * * * *
    Issued in Kansas City, MO, on October 4, 1995.
Herman J. Lyons, Jr.,
Manager, Air Traffic Division, Central Region.
[FR Doc. 95-26762 Filed 10-27-95; 8:45 am]
BILLING CODE 4910-13-M

Complete official Federal Register PDF

FR Doc. 95-26738 Selection of Tax Matters Partner for Limited Liability Companies
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55228-55231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26738]

-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY
26 CFR Part 301

[PS-34-92]
RIN 1545-AS09

Selection of Tax Matters Partner for Limited Liability Companies

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document contains proposed regulations relating to the 
designation or selection of a tax matters partner for limited liability 
companies classified as partnerships. This document also amends current 
proposed regulations to consolidate certain guidance necessary to 
determine the tax matters partner for partnerships.

DATES: Written comments and requests for a public hearing must be 
received by January 29, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (PS-34-92), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand delivered between 
the hours of 8:00 a.m. and 5:00 p.m. to: CC:DOM:CORP:T:R (PS-34-92), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: D. Lindsay Russell, (202) 622-3050 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Prior to the enactment of the Tax Equity and Fiscal Responsibility 
Act of 1982 (TEFRA), adjustments attributable to the tax items of a 
partnership were made at the partner level. Section 402 of TEFRA added 
sections 6221 through 6231 to the Internal Revenue Code of 1986, as 
amended, to allow for consolidated administrative and judicial 
proceedings to determine the tax treatment of partnership items at the 
partnership level. Under this consolidated proceeding, the tax matters 
partner of a partnership represents the partnership before the IRS in 
all tax matters for a specific taxable year.
    Section 6231(a)(7) provides that the tax matters partner of a 
partnership is the general partner designated as the tax matters 
partner as provided in regulations or, if no general partner is 
designated, the general partner having the largest profits interest in 
the partnership at the close of the taxable year involved (largest-
profits-interest rule). Section 6231(a)(7) also provides that, if no 
general partner is designated and the Commissioner determines that it 
is impracticable to apply the largest-profits-interest rule, the 
partner selected by the Commissioner is treated as the tax matters 
partner.
    Proposed regulations under sections 6221 through 6231 and section 
6233 were published in the Federal Register (51 FR 13231) on April 18, 
1986. Several comments on the proposed regulations were received, but 
no public hearing was requested and none was held. Temporary 
regulations identical to the proposed regulations were published in the 
Federal Register (52 FR 6779) on March 5, 1987. The temporary and 
proposed regulations remain outstanding.
    On February 29, 1988, the IRS published Rev. Proc. 88-16, 1988-1 
C.B. 691. This revenue procedure describes circumstances under which 
the IRS will determine that it is impracticable to apply the largest-
profits-interest rule and describes the criteria the IRS will consider 
in selecting a tax matters partner for the partnership.
    Since the enactment of TEFRA, virtually all states and several 
foreign jurisdictions have enacted laws providing for the formation of 
limited liability companies (LLCs). Although local law varies as to the 
requirements for establishing an LLC, the common denominator is that 
none of the members are liable for the debts and obligations of the LLC 
beyond their contributions (absent an express assumption of liability 
by a member if authorized under the applicable LLC statute). In 
addition, under local law, LLCs may be generally managed by elected or 
designated ``managers,'' who may be members of the LLC. In most 
jurisdictions, however, LLCs need not be managed by elected or 
designated managers. In those cases, all members of the LLC have 
management authority.
    LLCs in most jurisdictions may be classified for Federal tax 
purposes either 

[[Page 55229]]
as partnerships or associations that are taxable as corporations, 
depending on the characteristics of the LLC. See, e.g., Rev. Rul. 88-
76, 1988-2 C.B. 360; Rev. Rul. 93-38, 1993-1 C.B. 233. For LLCs that 
are classified as partnerships for Federal tax purposes, it is 
necessary to determine the tax matters partner for the LLC.

Explanation of Provisions

A. Tax Matters Partner for LLCs

    The proposed regulations provide that a ``member-manager'' of an 
LLC will be treated as a general partner for purposes of determining 
the tax matters partner of the LLC. Any member of an LLC that is not a 
member-manager is treated as a partner other than a general partner. 
The proposed regulations define a member-manager as a member of the LLC 
who, alone or together with others, is vested with the continuing 
exclusive authority to make the management decisions necessary to 
conduct the business for which the organization was formed. This 
approach is adopted because, if a member of the LLC has such continuing 
exclusive management authority, the member should have the necessary 
authority and access to partnership records needed to function as a tax 
matters partner. The proposed regulations also provide that if there 
are no elected or designated member-managers (as described above), each 
member will be treated as a member- manager.
    The proposed regulations define an LLC as an organization formed 
under a law that allows the limitation of the liability of all members 
for the organization's debts and other obligations and classified as a 
partnership for Federal tax purposes.

B. Amending Proposed Regulations to Incorporate the Provisions of Rev. 
Proc. 88-16

    The current proposed regulations under Sec. 301.6231(a)(7)-1 
provIde certain guidance concerning the designation of a tax matters 
partner under the largest-profits-interest rule of section 
6231(a)(7)(B). However, the current proposed regulations do not 
describe circumstances under which the Commissioner will determine that 
it is impracticable to apply the largest-profits-interest rule and do 
not describe how the Commissioner will select a tax matters partner 
when it is impracticable to apply the largest-profits-interest rule. 
This additional guidance is provided in Rev. Proc. 88-16.
    For administrative simplicity, the provisions in this notice of 
proposed rulemaking amend the current proposed regulations to include 
the rules of Rev. Proc. 88-16. As a result, the complete guidance 
necessary for determining the tax matters partner for a partnership and 
an LLC will be contained in the proposed regulations under section 
6231(a)(7).
    As amended, the proposed regulations incorporate the provisions of 
Rev. Proc. 88-16 with one substantive change. Under sections 3.05 and 
3.06 of Rev. Proc. 88-16, if each general partner is deemed to have no 
profits interest under section 3.03(2) or 3.03(3), the IRS will select 
a limited partner as the tax matters partner. Some partnerships, such 
as a general partnership or a foreign LLC in which all members are 
member-managers, do not have limited partners. To permit the 
Commissioner to select a tax matters partner in these situations, the 
proposed regulations allow the Commissioner to select any partner 
(including either a general or limited partner) as the tax matters 
partner.

Proposed Effective Date

    Sections 301.6231(a)(7)-1 and 301.6231(a)(7)-2 are proposed to be 
effective for all designations, selections, and terminations of a tax 
matters partner occurring on or after the date final regulations are 
published in the Federal Register. Any other reasonable designation or 
selection of a tax matters partner of an LLC is binding for periods 
prior to the effective date of this regulation.

Effect on Other Documents

    Rev. Proc. 88-16 is obsolete as of the date final regulations are 
published in the Federal Register.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 12866. Therefore, 
a regulatory assessment is not required. It also has been determined 
that section 553(b) of the Administrative Procedure Act (5 U.S.C. 
chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do 
not apply to these regulations, and, therefore, a Regulatory 
Flexibility Analysis is not required. Pursuant to section 7805(f) of 
the Internal Revenue Code, this notice of proposed rulemaking will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) that are submitted timely to the IRS. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in writing by a person that 
timely submits written comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of these regulations is D. Lindsay Russell, 
Office of Assistant Chief Counsel (Passthroughs and Special 
Industries). However, other personnel from the IRS and Treasury 
Department participated in their development.

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 is amended by 
adding entries in numerical order to read as follows:

    Authority: 26 U.S.C. 7805 * * *

    Section 301.6231(a)(7)-1 also issued under 26 U.S.C. 6230 (i) 
and (k). * * *
    Section 301.6231(a)(7)-2 also issued under 26 U.S.C. 6230 (i) 
and (k). *  * *
    Par. 2. Section 301.6231(a)(7)-1 (as proposed to be added in the 
Federal Register for April 18, 1986 (51 FR 13245)) is amended by:
    1. Revising the section heading.
    2. Adding a new sentence at the end of paragraph (a).
    3. Removing the heading for paragraph (c)(1) and redesignating 
paragraph (c)(1) as paragraph (c).
    4. Removing paragraph (c)(2).
    5. Adding a sentence at the end of paragraph (m)(2).
    6. Adding paragraphs (n), (o), (p), (q), (r), and (s). The 
additions and revisions read as follows:

Sec. 301.6231(a)(7)-1  Designation or selection of tax matters partner.

    (a) * * * If a partnership does not designate a general partner as 
the tax matters partner for a specific taxable year, or if the 
designation is terminated without the partnership designating 

[[Page 55230]]
another general partner as the tax matters partner, the tax matters 
partner is the partner determined under this section.
* * * * *
    (m) * * *
    (2) * * * For purposes of this paragraph (m)(2), the general 
partner with the largest profits interest is determined based on the 
year-end profits interests reported on the Schedules K-1 filed with the 
partnership income tax return for the taxable year for which the 
determination is being made.
* * * * *
    (n) Selection of tax matters partner by Commissioner when 
impracticable to apply the largest-profits-interest rule. If the 
partnership has not designated a tax matters partner under this section 
for the taxable year and it is impracticable (as determined under 
paragraph (o) of this section) to apply the largest-profits-interest 
rule of paragraph (m)(2) of this section, the Commissioner will select 
a tax matters partner as described in paragraph (p) of this section.
    (o) Impracticability of largest-profits-interest rule. It is 
impracticable to apply the largest-profits-interest rule of paragraph 
(m)(2) of this section if, on the date the rule is applied, any one of 
the following three conditions is met:
    (1) General partner with the largest profits interest is not 
apparent. The general partner with the largest profits interest is not 
apparent from the Schedules K-1 and is not otherwise readily 
determinable.
    (2) Each general partner is deemed to have no profits interest in 
the partnership. Each general partner is deemed to have no profits 
interest in the partnership under paragraph (m)(3) of this section 
(concerning termination of a designation under the largest-profits-
interest rule) because of the occurrence of one or more of the events 
described in paragraphs (l)(1) through (4) of this section (involving 
death, adjudication of incompetency, liquidation, and conversion of 
partnership items to nonpartnership items).
    (3) General partner with the largest profits interest is 
disqualified. The general partner with the largest profits interest 
determined under paragraph (m)(2) of this section--
    (i) Has been notified of suspension from practice before the 
Internal Revenue Service;
    (ii) Is incarcerated;
    (iii) Is residing outside the United States, its possessions, or 
territories; or
    (iv) Cannot be located or cannot perform the functions of a tax 
matters partner for any reason, except that lack of cooperation with 
the Internal Revenue Service by the general partner with the largest 
profits interest is not a basis for finding that the partner cannot 
perform the functions of a tax matters partner.
    (p) Commissioner's selection of the tax matters partner--(1) When 
the general partner with the largest profits interest is not apparent. 
If it is impracticable under paragraph (o)(1) of this section to apply 
the largest-profits interest rule of paragraph (m)(2) of this section, 
the Commissioner will select (in accordance with the notification 
procedures set forth in paragraph (r) of this section) as the tax 
matters partner any person who was a general partner at any time during 
the taxable year under examination.
    (2) When each general partner is deemed to have no profits interest 
in the partnership. If it is impracticable under paragraph (o)(2) of 
this section to apply the largest-profits- interest rule of paragraph 
(m)(2) of this section, the Commissioner will select a partner 
(including a general or limited partner) as the tax matters partner in 
accordance with the criteria set forth in paragraph (q) of this 
section. The Commissioner will notify both the partner selected and the 
partnership of the selection, effective as of the date specified in the 
notice.
    (3) When the general partner with the largest profits interest is 
disqualified--(i) In general. Except as otherwise provided in paragraph 
(p)(3)(ii) of this section, if it is impracticable under paragraph 
(o)(3) of this section to apply the largest-profits-interest rule of 
paragraph (m)(2) of this section, the Commissioner will treat each 
general partner who fits the criteria contained in paragraph (o)(3) of 
this section as having no profits interest in the partnership for the 
taxable year and will select (in accordance with the notification 
procedures set forth in paragraph (r) of this section) a tax matters 
partner from the remaining persons who were general partners at any 
time during the taxable year.
    (ii) Partner selected if no general partner may be selected. If all 
general partners during the taxable year either are treated as having 
no profits interest in the partnership for the taxable year under 
paragraph (m)(3) of this section (concerning termination of a 
designation under the largest-profits-interest rule) or are described 
in paragraph (o)(3) of this section (general partner with the largest 
profits interest is disqualified), the Commissioner will select a 
partner (including a general or limited partner) as the tax matters 
partner in accordance with the criteria set forth in paragraph (q) of 
this section. The Commissioner will notify both the partner selected 
and the partnership of the selection, effective as of the date 
specified in the notice.
    (q) Criteria for selecting a partner as tax matters partner--(1) In 
general. The Commissioner will select a partner as the tax matters 
partner under paragraph (p)(2) or (3)(ii) of this section only if the 
partner was a partner in the partnership at the close of the taxable 
year under examination.
    (2) Criteria to be considered. The Commissioner may consider the 
following criteria in selecting a partner as the tax matters partner:
    (i) The general knowledge of the partner in tax matters and the 
administrative operation of the partnership.
    (ii) The partner's access to the books and records of the 
partnership.
    (iii) The profits interest held by the partner.
    (iv) The views of the partners having a majority interest in the 
partnership regarding the selection.
    (v) Whether the partner is a partner of the partnership at the time 
the tax-matters-partner selection is made.
    (vi) Whether the partner is a United States person (within the 
meaning of section 7701(a)(30)).
    (3) Limited restriction on subsequent designation of a tax matters 
partner by the partnership. For purposes of paragraphs (p)(2) and 
(3)(ii) of this section, the partnership cannot designate a partner who 
is not a general partner to serve as tax matters partner in lieu of a 
partner selected by the Commissioner.
    (r) Notification of partnership--(1) In general. If the 
Commissioner selects a tax matters partner under the provisions of 
paragraph (p)(1) or (3)(i) of this section, the Commissioner will 
notify both the partner selected and the partnership of the selection, 
effective as of the date specified in the notice.
    (2) Limited opportunity for partnership to designate the tax 
matters partner. (i) Before the Commissioner selects a tax matters 
partner under paragraphs (p)(1) and (3)(i) of this section, the 
Commissioner will notify the partnership by mail that, after 30 days 
from the date of the notice, the Commissioner will make a determination 
that it is impracticable to apply the largest-profits-interest rule of 
paragraph (m)(2) of this section and will select the tax matters 
partner unless a prior designation is made by the partnership. This 
delay in making the determination will permit the partnership to 
designate a tax matters partner under paragraph (e) (designation 

[[Page 55231]]
by general partners with a majority interest) or (f) of this section 
(designation by partners with a majority interest under certain 
circumstances), thereby avoiding a selection made by the Commissioner.
    (ii) During the 30-day period and prior to a tax-matters-partner 
designation by the partnership, the Commissioner will communicate with 
the partnership by sending all correspondence or notices to ``The Tax 
Matters Partner'' in care of the partnership at the partnership's 
address.
    (iii) Any subsequent designation of a tax matters partner by the 
partnership after the 30-day period will become effective as provided 
under paragraph (k)(2) of this section (concerning designations made 
after a notice of beginning of administrative proceeding is mailed).
    (s) Effective date. This section applies to all designations, 
selections, and terminations of a tax matters partner occurring on or 
after the date final regulations are published in the Federal Register.
    Par. 3. Section 301.6231(a)(7)-2 is added to read as follows:

Sec. 301.6231(a)(7)-2  Designation or selection of tax matters partner 
for a limited liability company (LLC).

    (a) In general. Solely for purposes of applying section 6231(a)(7) 
and Sec. 301.6231(a)(7)-1 to an LLC, only a member-manager of an LLC is 
treated as a general partner, and a member of an LLC who is not a 
member-manager is treated as a partner other than a general partner.
    (b) Definitions--(1) LLC. Solely for purposes of this section, LLC 
means an organization:
    (i) Formed under a law that allows the limitation of the liability 
of all members for the organization's debts and other obligations 
within the meaning of Sec. 301.7701-2(d); and
    (ii) Classified as a partnership for Federal tax purposes.
    (2) Member. Solely for purposes of this section, member means any 
person who owns an interest in an LLC.
    (3) Member-manager. Solely for purposes of this section, member-
manager means a member of an LLC who, alone or together with others, is 
vested with the continuing exclusive authority to make the management 
decisions necessary to conduct the business for which the organization 
was formed. Generally, an LLC statute may permit the LLC to choose 
management by one or more managers (whether or not members) or by all 
of the members. If there are no elected or designated member-managers 
(as so defined in this paragraph (b)(3)) of the LLC, each member will 
be treated as a member-manager for purposes of this section.
    (c) Effective date. This section applies to all designations, 
selections, and terminations of a tax matters partner of an LLC 
occurring on or after the date final regulations are published in the 
Federal Register. Any other reasonable designation or selection of a 
tax matters partner of an LLC is binding for periods prior to the 
effective date of this section.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 95-26738 Filed 10-27-95; 8:45 am]
BILLING CODE 4830-01-U

Complete official Federal Register PDF

FR Doc. 95-26694 Subscribership and Usage of the Public Switched Network
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Pages 55237-55238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26694]

=======================================================================
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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 36 and 69

[CC Docket No. 95-115; DA 95-2197]

Subscribership and Usage of the Public Switched Network

agency: Federal Communications Commission.

action: Proposed Rule; Extension of Time.

-----------------------------------------------------------------------

summary: On July 20, 1995, the Commission released a Notice of Proposed 
Rulemaking (``Notice'') concerning rules and policies to increase 
subscribership and usage of the public switched network. The Commission 
invited comment on the proposals and tentative conclusions set forth in 
that Notice, and set deadlines of September 27, 1995, for initial 
comments and October 27, 1995, for 

[[Page 55238]]
reply comments. The Commission has received comments from more than 60 
respondents. Because many of these comments are lengthy and present 
alternative proposals to those appearing in the Notice, we find the 
October 27th deadline may not provide sufficient time to produce a full 
and complete record in this proceeding. Although we do not routinely 
extend comment deadlines, we believe that an extension to November 14, 
1995, in this proceeding will serve the public interest by giving 
interested parties adequate time to review and reply to the initial 
comments.

dates: Reply comments are due on or before November 14, 1995.

addresses: Federal Communications Commission, 1919 M Street, NW., 
Washington, DC 20554.

for further information contact: Andy Mulitz, telephone number 202-418-
0827, George Johnson, telephone number 202-418-0866, or John V. Giusti, 
telephone number 202-418-0878.

supplementary information:

Order Extending Reply Comment Period

    Adopted: October 19, 1995.
    Released: October 20, 1995.

    By the Chief, Common Carrier Bureau:
    1. On July 20, 1995, the Commission released a Notice of Proposed 
Rulemaking (``Notice''), 60 FR 44296, August 25, 1995, in the captioned 
proceeding concerning rules and policies to increase subscribership and 
usage of the public switched network. The Commission invited comment on 
the proposals and tentative conclusions set forth in that Notice, and 
set deadlines of September 27, 1995, for initial comments and October 
27, 1995, for reply comments.
    2. The Commission has received comments from more than 60 
respondents. Many of these comments are lengthy and present alternative 
proposals to those appearing in the Notice that require careful 
analysis. In these circumstances, we find the October 27th deadline may 
not provide sufficient time to produce a full and complete record in 
this proceeding. Although we do not routinely extend comment deadlines, 
we believe that an extension to November 14, 1995, in this proceeding 
will serve the public interest by giving interested parties adequate 
time to review and reply to the initial comments.
    3. Accordingly, it is ordered, pursuant to Sections 4(i), 4(j), and 
5(c) of the Communications Act of 1934, as amended, 47 U.S.C. 
Secs. 154(i), 154(j), and 155(c), and Sections 0.91 and 0.291 of the 
Commission's rules, 47 CFR Secs. 0.91 and 0.291, that the deadline for 
filing reply comments in the captioned proceeding IS EXTENDED until 
November 14, 1995.

Federal Communications Commission.
Kathleen M.H. Wallman,
Chief, Common Carrier Bureau.
[FR Doc. 95-26694 Filed 10-27-95; 8:45 am]
BILLING CODE 6712-01-M

Complete official Federal Register PDF

FR Doc. 95-26590 Approval and Promulgation of Implementation Plans; Ohio
[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Proposed Rules]
[Page 55231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26590]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[OH83-1-6991b; AD-FRL-5299-7]

Approval and Promulgation of Implementation Plans; Ohio

agency: Environmental Protection Agency (USEPA).

action: Proposed rule.

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summary: The USEPA proposes to approve the State Implementation Plan 
(SIP) revision submitted by the State of Ohio to correct its Rule 3745-
35-07 that underlies its federally enforceable State operating permits 
(FESOP) program. The USEPA proposes further to conclude that Ohio has 
satisfied the condition established in USEPA's conditional approval of 
Ohio's FESOP program, as published on October 25, 1994, at 59 FR 53586. 
In the Final Rules section of this Federal Register, USEPA is fully 
approving the State's SIP revision as a direct final rule without prior 
proposal, because the USEPA views this as a noncontroversial revision 
and anticipates no adverse comments. A detailed rationale for the 
approval is set forth in the direct final rule. If no adverse comments 
are received in response to these actions, no further activity is 
contemplated in relation to this proposed rule. If USEPA receives 
adverse comments, the direct final rule will be withdrawn and all 
public comments will be addressed in a subsequent final rule based on 
this proposed rule. Any parties interested in commenting on this action 
should do so at this time.

dates: Comments must be received on or before November 29, 1995.

addresses: Written comments should be mailed to: J. Elmer Bortzer, 
Chief, Regulation Development Section, Regulation Development Branch 
(AR-18J), United States Environmental Protection Agency, Region 5, 77 
West Jackson Boulevard, Chicago, Illinois 60604.
    Copies of the State submittal and USEPA's analysis of its are 
available for inspection at: Regulation Development Section, Regulation 
Development Branch (AR-18J), United States Environmental Protection 
Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604.

for further information contact: John Summerhays, Regulation 
Development Section, Regulation Development Branch (AR-18J), United 
States Environmental Protection Agency, Region 5, Chicago, Illinois 
60604, (312) 886-6067.

supplementary information: For additional information see the direct 
final rule published in the rules section for this Federal Register.

    Authority: 42 U.S.C. 7401-7671q.

    Dated: September 5, 1995.
Michelle D. Jordan,
Acting Regional Administrator.
[FR Doc. 95-26590 Filed 10-27-95; 8:45 am]
BILLING CODE 6560-50-M

Complete official Federal Register PDF

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