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Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001

The FEDERAL REGISTER is published daily, Monday throughFriday, except official holidays, by the Office of the FederalRegister, National Archives and Records Administration,Washington, DC 20408, under the Federal Register Act (44 U.S.C.Ch. 15) and the regulations of the Administrative Committee ofthe Federal Register (1 CFR Ch. I). The Superintendent ofDocuments, U.S. Government Printing Office, Washington, DC20402 is the exclusive distributor of the official edition.The Federal Register provides a uniform system for makingavailable to the public regulations and legal notices issued byFederal agencies. These include Presidential proclamations andExecutive Orders, Federal agency documents having generalapplicability and legal effect, documents required to be publishedby act of Congress, and other Federal agency documents of publicinterest.Documents are on file for public inspection in the Office of theFederal Register the day before they are published, unless theissuing agency requests earlier filing. For a list of documentscurrently on file for public inspection, see http://www.nara.gov/fedreg.The seal of the National Archives and Records Administrationauthenticates the Federal Register as the official serial publicationestablished under the Federal Register Act. Under 44 U.S.C. 1507,the contents of the Federal Register shall be judicially noticed.The Federal Register is published in paper and on 24x microfiche.It is also available online at no charge as one of the databaseson GPO Access, a service of the U.S. Government Printing Office.The online edition of the Federal Register is issued under theauthority of the Administrative Committee of the Federal Registeras the official legal equivalent of the paper and microfiche editions(44 U.S.C. 4101 and 1 CFR 5.10). It is updated by 6 a.m. eachday the Federal Register is published and it includes both textand graphics from Volume 59, Number 1 (January 2, 1994) forward.GPO Access users can choose to retrieve online Federal Registerdocuments as TEXT (ASCII text, graphics omitted), PDF (AdobePortable Document Format, including full text and all graphics),or SUMMARY (abbreviated text) files. Users should carefully checkretrieved material to ensure that documents were properlydownloaded.On the World Wide Web, connect to the Federal Register at http://www.access.gpo.gov/nara. Those without World Wide Web accesscan also connect with a local WAIS client, by Telnet toswais.access.gpo.gov, or by dialing (202) 512-1661 with a computerand modem. When using Telnet or modem, type swais, then login as guest with no password.For more information about GPO Access, contact the GPO AccessUser Support Team by E-mail at [email protected]; by fax at(202) 512–1262; or call (202) 512–1530 or 1–888–293–6498 (tollfree) between 7 a.m. and 5 p.m. Eastern time, Monday–Friday,except Federal holidays.The annual subscription price for the Federal Register paperedition is $638, or $697 for a combined Federal Register, FederalRegister Index and List of CFR Sections Affected (LSA)subscription; the microfiche edition of the Federal Registerincluding the Federal Register Index and LSA is $253. Six monthsubscriptions are available for one-half the annual rate. The chargefor individual copies in paper form is $9.00 for each issue, or$9.00 for each group of pages as actually bound; or $2.00 foreach issue in microfiche form. All prices include regular domesticpostage and handling. International customers please add 25% forforeign handling. Remit check or money order, made payable tothe Superintendent of Documents, or charge to your GPO DepositAccount, VISA, MasterCard or Discover. Mail to: New Orders,Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA15250–7954.There are no restrictions on the republication of material appearingin the Federal Register.How To Cite This Publication: Use the volume number and thepage number. Example: 66 FR 12345.

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FEDERAL REGISTER WORKSHOP

THE FEDERAL REGISTER: WHAT IT IS ANDHOW TO USE IT

FOR: Any person who uses the Federal Register and Code of FederalRegulations.

WHO: Sponsored by the Office of the Federal Register.WHAT: Free public briefings (approximately 3 hours) to present:

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2. The relationship between the Federal Register and Codeof Federal Regulations.

3. The important elements of typical Federal Registerdocuments.

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Contents Federal Register

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Vol. 66, No. 91

Thursday, May 10, 2001

Agency for Healthcare Research and QualityNOTICESMeetings:

Technical Review Committee, 23931

Agriculture DepartmentSee Animal and Plant Health Inspection ServiceSee Cooperative State Research, Education, and Extension

ServiceSee Forest Service

Air Force DepartmentNOTICESMeetings:

Community College Board of Visitors, 23898–23899

Animal and Plant Health Inspection ServiceNOTICESMeetings:

Aquaculture issues and concerns, 23877–23878

Army DepartmentNOTICESEnvironmental statements; availability, etc.:

Fort Sam Houston and Camp Bullis, TX, 23899Privacy Act:

Systems of records, 23899–23902

Census BureauNOTICESAgency information collection activities:

Proposed collection; comment request, 23881–23882

Centers for Disease Control and PreventionNOTICESAgency information collection activities:


Chemical Safety and Hazard Investigation BoardRULESTestimony by employees in legal proceedings, 23853–23854

Children and Families AdministrationRULESPersonal Responsibility and Work Opportunity

Reconciliation Act of 1996; implementation:Temporary Assistance for Needy Families Program—

High performance bonus awards to States, 23854–23860

NOTICESGrants and cooperative agreements; availability, etc.:

Developmental disabilities—Projects of National Significance Program, 23933–23943

Coast GuardRULESRegattas and marine parades:

Seattle National Maritime Week Tugboat Race, 23849PROPOSED RULESOuter Continental Shelf activities:

Minerals Management Service; fixed facilitiesinspections, 23871–23873

Commerce DepartmentSee Census BureauSee International Trade AdministrationSee National Oceanic and Atmospheric Administration

Committee for the Implementation of Textile AgreementsNOTICESAfrican Growth and Opportunity Act and United States-

Carribean Basin Trade Partnership Act:Textile and apparel short supply provisions, comment

requests, determinations, etc.—Stillwater Sales, Inc./Metcalf Bros. and Co., 23885

Cotton, wool, and man-made textiles:Korea, 23885–23886

Comptroller of the CurrencyNOTICESNational banks:

Preemption applications, etc.—Ohio; automobile leasing, 23977–23979

Cooperative State Research, Education, and ExtensionService

NOTICESAgency information collection activities:

Proposed collection; comment request, 23878–23879Grants and cooperative agreements; availability, etc.:

Alaska Native-Serving and Native Hawaiian-ServingInstitutions Education Program, 24037–24042

Customs ServiceRULESUruguay Round Agreements Act (URAA):

Textile and apparel products; rules of originCorrection, 23981

Defense DepartmentSee Air Force DepartmentSee Army DepartmentSee Navy DepartmentNOTICESArms sales notification; transmittal letter, etc., 23886–23898Meetings:

Science Board, 23898

Education DepartmentNOTICESGrants and cooperative agreements; availability, etc.:

Elementary and secondary education—Advanced Placement Incentive Program; correction,

23903

Employment and Training AdministrationNOTICESAgency information collection activities:


Energy DepartmentSee Federal Energy Regulatory Commission

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IV Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Contents

RULESWhistleblower protection:

Security requirements for protected disclosure underNational Defense Authorization Act

Effective date confirmed, 23833

Environmental Protection AgencyRULESAir programs; approval and promulgation; State plans for

designated facilities and pollutants:New York, 23851–23853

Air quality implementation plans; approval andpromulgation; various States:

New York, 23849–23851PROPOSED RULESAir programs; approval and promulgation; State plans for

designated facilities and pollutants:New York, 23874


Proposed collection; comment request, 23921–23922Air programs:

State implementation plans; adequacy status fortransportation conformity purposes—

Illinois, 23922–23923Meetings:

Local Government Advisory Committee, 23923State and Tribal Toxics Action Forum, 23924

Superfund; response and remedial actions, proposedsettlements, etc.:

Marina Cliffs/Northwestern Barrel Site, WI, 23924–23925Petroleum Products Site, GA, 23925–23926

Executive Office of the PresidentSee National Drug Control Policy OfficeSee Presidential Documents

Farm Credit AdministrationNOTICESMeetings; Sunshine Act, 23926

Federal Aviation AdministrationRULESAirworthiness directives:

Airbus, 23838–23840Boeing, 23836–23838Eagle Aircraft Pty. Ltd., 23834–23836McDonnell Douglas, 23840–23845

Federal Communications CommissionRULESRadio broadcasting:

Low power FM radio service; creation and operation,23861–23863


Proposed collection; comment request, 23926–23928Reporting and recordkeeping requirements, 23928–23929

Rulemaking proceedings; petitions filed, granted, denied,etc., 23929

Federal Election CommissionNOTICESMeetings; Sunshine Act, 23929

Federal Emergency Management AgencyPROPOSED RULESNational Flood Insurance Program:

Private sector property insurers; assistance, 23874–23876

Federal Energy Regulatory CommissionNOTICESElectric rate and corporate regulation filings:

Pinnacle West Energy Corp. et al., 23909–23914TransAlta USA Inc. et al., 23914–23917

Hydroelectric applications, 23917–23921Practice and procedure:

Off-the-record communications, 23921Applications, hearings, determinations, etc.:

ANR Pipeline Co., 23903Arkansas Western Gas Co., 23903–23904Colorado Interstate Gas Co., 23904Discovery Gas Transmission LLC, 23904Eastern Shore Natural Gas Co., 23904Florida Gas Transmission Co., 23904–23905Georgia Straits Crossing Pipeline L.P., 23905–23906Great Lakes Gas Transmission L.P., 23906–23907Northern Natural Gas Co., 23907PG&E Gas Transmission, Northwest Corp., 23907–23908Reliant Energy Gas Transmission Co., 23908Texas Eastern Transmission, LP, 23908–23909Texas Eastern Transmission, LP; correction, 23908Transcontinental Gas Pipe Line Corp., 23909

Federal Highway AdministrationRULESEngineering and traffic operations:

Transportation Equity Act for 21st Century;implementation—

Federal-aid project authorization and agreement,23845–23849

NOTICESEnvironmental statements; notice of intent:

Evansville, IN and Henderson, KY, 23966–23967Wythe County, VA, 23967

Federal Housing Finance BoardPROPOSED RULESAffordable Housing Program; amendments, 23864–23868

Federal Reserve SystemNOTICESAgency information collection activities:


Fish and Wildlife ServiceNOTICESEndangered and threatened species permit applications,

23947–23948

Food and Drug AdministrationNOTICESFood additive petitions:

Food Irradiation Coalition, 23943–23944

Forest ServiceNOTICESEnvironmental statements; notice of intent:

Ashley National Forest, UT, 23879–23881

Health and Human Services DepartmentSee Agency for Healthcare Research and QualitySee Centers for Disease Control and PreventionSee Children and Families AdministrationSee Food and Drug AdministrationSee Health Care Financing AdministrationSee Program Support Center


VFederal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Contents



Health Care Financing AdministrationPROPOSED RULESMedicare:

Skilled nursing facilities; prospective payment systemand consolidated billing; update, 23983–24036


Proposed collection; comment request, 23944–23945Submission for OMB review; comment request, 23945–

23946

Housing and Urban Development DepartmentNOTICESOrganization, functions, and authority delegations:

Chief Financial Officer; order of succession, 23947

Indian Affairs BureauNOTICESAgency information collection activities:


Interior DepartmentSee Fish and Wildlife ServiceSee Indian Affairs BureauSee Land Management BureauSee Surface Mining Reclamation and Enforcement Office

Internal Revenue ServicePROPOSED RULESIncome taxes, etc.:

Entity classification rules; clarificationHearing canceled, 23868

International Trade AdministrationNOTICESAntidumping:

Oil country tubular goods from—Japan, 23882

International Trade CommissionNOTICESImport investigations:

Hot-rolled steel products from—Various countries, 23950–23951

Polyvinyl alcohol from—Various countries, 23949–23950

Labor DepartmentSee Employment and Training Administration

Land Management BureauNOTICESPublic land orders:

Colorado, 23949

Maritime AdministrationRULESPractice and procedure:

Audit appeals; policy and procedure, 23860–23861

National Council on DisabilityNOTICESMeetings:

International Watch Advisory Committee, 23952

National Drug Control Policy OfficeNOTICESAgency information collection activities:

Proposed collection; comment request, 23926

National Highway Traffic Safety AdministrationNOTICESMotor vehicle safety standards:

Nonconforming vehicles—Defect and noncompliance decisions; annual list,

23967–23974Reports and guidance documents; availability, etc.:

Head restraints; effectiveness in light trucks; evaluationreport, 23974–23975

National Oceanic and Atmospheric AdministrationNOTICESPermits:

Endangered and threatened species, 23882–23884Marine mammals, 23884

Navy DepartmentNOTICESPatent licenses; non-exclusive, exclusive, or partially

exclusive:Wickford Technologies, Inc., 23902–23903

Northeast Dairy Compact CommissionRULESOver-order price regulations:

Supply Management Refund Program; correction, 23833

Nuclear Regulatory CommissionNOTICESMeetings:

Reactor Safeguards Advisory Committee, 23952–23953

Presidential DocumentsPROCLAMATIONSSpecial observances:

Asian/Pacific American Heritage Month (Proc. 7434),23831–23832

Program Support CenterNOTICESAgency information collection activities:

Submission for OMB review; comment request, 23946–23947

Public Health ServiceSee Agency for Healthcare Research and QualitySee Centers for Disease Control and PreventionSee Food and Drug Administration

Securities and Exchange CommissionNOTICESAgency information collection activities:

Submission for OMB review; comment request, 23953Self-regulatory organizations; proposed rule changes:

American Stock Exchange LLC, 23955–23956Depository Trust Co., 23956–23957National Association of Securities Dealers, Inc., 23958–

23961Philadelphia Stock Exchange, Inc., 23961–23963

Applications, hearings, determinations, etc.:Public utility holding company filings, 23953–23955


VI Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Contents

Small Business AdministrationNOTICESAgency information collection activities:

Submission for OMB review; comment request, 23963

Social Security AdministrationNOTICESAgency information collection activities:

Proposed collection and submission for OMB review;comment request, 23963–23965

State DepartmentNOTICESArt objects; importation for exhibition:

Mies in Berlin, 23965–23966

Surface Mining Reclamation and Enforcement OfficePROPOSED RULESPermanent program and abandoned mine land reclamation

plan submissions:Arkansas, 23868–23870

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

Union Pacific Railroad Co., 23975

Textile Agreements Implementation CommitteeSee Committee for the Implementation of Textile

Agreements

Transportation DepartmentSee Coast GuardSee Federal Aviation AdministrationSee Federal Highway AdministrationSee Maritime AdministrationSee National Highway Traffic Safety AdministrationSee Surface Transportation Board

Treasury DepartmentSee Comptroller of the CurrencySee Customs ServiceSee Internal Revenue ServiceNOTICESAgency information collection activities:

Submission for OMB review; comment request, 23975–23977

Veterans Affairs DepartmentPROPOSED RULESLoan guaranty:

Properties conveyance to VA by holders; title evidenceand occupancy requirements; and partial paymentsacceptance; indemnification of default; withdrawn,23873–23874

NOTICESMeetings:

Prosthetics and Special-Disabilities Programs AdvisoryCommittee, 23979–23980

Separate Parts In This Issue

Part IIDepartment of Health and Human Services, Health Care

Financing Administration, 23983–24036

Part IIIDepartment of Agriculture, Cooperative State Research,

Education, and Extension Service, 24037–24042

Reader AidsConsult the Reader Aids section at the end of this issue forphone numbers, online resources, finding aids, reminders,and notice of recently enacted public laws.


CFR PARTS AFFECTED IN THIS ISSUE

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

VIIFederal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Contents

3 CFRProclamations:7434.................................23831

7 CFR1309.................................23833

10 CFR1044.................................23833

12 CFRProposed Rules:951...................................23864

14 CFR39 (4 documents) ...........23834,

23836, 23838, 23840

19 CFR102...................................23981

23 CFR630...................................23845

26 CFRProposed Rules:1.......................................23868301...................................23868


33 CFR100...................................23849Proposed Rules:140...................................23871

38 CFRProposed Rules:36.....................................23873

40 CFR52.....................................2384962.....................................238511611.................................23853Proposed Rules:62.....................................23874

42 CFRProposed Rules:410...................................23984411...................................23984413...................................23984424...................................23984482...................................23984489...................................23984

44 CFRProposed Rules:62.....................................23874

45 CFR270...................................23854

46 CFR205...................................23860

47 CFR73.....................................23861

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Presidential Documents

23831

Federal Register

Vol. 66, No. 91


Title 3—

The President

Proclamation 7434 of May 7, 2001

Asian/Pacific American Heritage Month, 2001

By the President of the United States of America

A Proclamation

As we move into the 21st century, the United States continues to greatlybenefit from the contributions of its diverse citizenry. Among those whohave influenced our country, Asian/Pacific Americans merit special recogni-tion. Their achievements have greatly enriched our quality of life and havehelped to determine the course of our Nation’s future.

Many immigrants of Asian heritage came to the United States in the nine-teenth century to work in the agricultural and transportation industries.Laboring under very difficult conditions, they helped construct the westernhalf of the first transcontinental railroad. Their hard work was invaluablein linking together the East and West coasts, thus vastly expanding economicgrowth and development across the country. Over time, other immigrantsjourneyed to America from East Asia, Southeast Asia, and the Asian Subconti-nent. Today, Asian/Pacific Americans are one of the fastest growing segmentsof our population, having increased in number from fewer than 1.5 millionin 1970 to approximately 10.5 million in 2000.

Asian/Pacific Americans bring to our society a rich cultural heritage rep-resenting many languages, ethnicities, and religious traditions. Whether ingovernment, business, science, technology, or the arts, Asian/Pacific Ameri-cans have added immeasurably to the prosperity and vitality of our society.As family members, citizens, and involved members of the community,they reinforce the values and ideals that are essential to the continuedwell-being of our Nation.

Diversity represents one of our greatest strengths, and we must strive toensure that all Americans have the opportunity to reach their full potential.By recognizing the accomplishments and contributions of Asian/PacificAmericans, our Nation celebrates the importance of inclusion in buildinga brighter future for all our citizens.

To honor the achievements of Asian/Pacific Americans, the Congress, byPublic Law 102-450, has designated the month of May each year as ‘‘Asian/Pacific American Heritage Month.’’

NOW, THEREFORE, I, GEORGE W. BUSH, President of the United Statesof America, by virtue of the authority vested in me by the Constitutionand the laws of the United States, do hereby proclaim May 2001, as Asian/Pacific American Heritage Month. I call upon the people of the UnitedStates to learn more about the contributions and history of Asian/PacificAmericans and to celebrate the role they have played in our national story.

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23832 Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Presidential Documents

IN WITNESS WHEREOF, I have hereunto set my hand this seventh dayof May, in the year of our Lord two thousand one, and of the Independenceof the United States of America the two hundred and twenty-fifth.

W[FR Doc. 01–11913

Filed 5–9–01; 8:45 am]

Billing code 3195–01–P

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

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

Rules and Regulations Federal Register

23833

Vol. 66, No. 91


NORTHEAST DAIRY COMPACTCOMMISSION

7 CFR Part 1309

Over-Order Price Regulation; SupplyManagement Refund Program;Correction

AGENCY: Northeast Dairy CompactCommission.ACTION: Correcting amendments.

SUMMARY: This document containscorrections to the final regulations (7CFR Part 1309) published in the FederalRegister of Wednesday, May 31, 2000,(65 FR 34580). The regulations relatedto establishing a Supply ManagementRefund Program for the regulated areapursuant to Article IV, section 9(f) of theNortheast Interstate Dairy Compact.DATES: Effective date: June 1, 2001.FOR FURTHER INFORMATION CONTACT:Daniel Smith, Executive Director,Northeast Dairy Compact Commission atthe above address or by telephone at(802) 229–1941, or by facsimile at (802)229–2028.SUPPLEMENTARY INFORMATION:

Background

The final regulations that are thesubject of these corrections establishedthe Northeast Dairy CompactCommission’s Supply ManagementRefund Program effective July 1, 2000.Section 1309.4 provides thequalifications and methodology forpayments to producers of the supplymanagement fund 45 days after theclose of the refund year on June 30.

Need for Correction

As published the final rule containserrors which may prove to bemisleading and need to be clarified.Because of a clerical error, § 1309.4(a) atline 5 of the first column of page 34581refers to ‘‘production of the precedingcalendar year’’ when the Commission

intended to refer to ‘‘production of thepreceding 12 month period.’’ Also, andagain due to a clerical error, § 1309.4(b)at line 21 of the first column of page34581 refers to ‘‘§ 1309.2(e)’’ which wasintended to read ‘‘§ 1309.2(c).’’

List of Subjects in 7 CFR Part 1309

Milk.

Accordingly, 7 CFR part 1309 iscorrected by making the followingcorrecting amendments:

PART 1309—SUPPLY MANAGEMENTREFUND PROGRAM

1. The authority citation for part 1309continues to read as follows:

Authority: 7 U.S.C. 7256.

2. Revise § 1309.4 to read as follows:

§ 1309.4 Payment to producers of supplymanagement refund.

(a) All producers who are qualifiedpursuant to § 1309.1 shall becomeeligible to receive payment of thesupply management refund computedpursuant to § 1309.2 by submitting tothe compact commission documentationthat the producer milk productionduring the refund year is less than or theincrease is not more than 1% of the milkproduction of the preceding 12 monthperiod. Such documentation shall befiled with the commission not later than45 days after the end of the refund year.

(b) The commission will makepayment to all producers qualifiedpursuant to § 1309.1 and eligiblepursuant to paragraph (a) of this sectionin the following manner:

(1) A per farm payment computed bydividing the amount subtractedpursuant to § 1309.2(b) by the totaleligible producers; and

(2) The value determined bymultiplying the supply managementrefund price computed pursuant to§ 1309.2(c) by the producer’s milkpounds, not to exceed $12,000.

Dated: May 1, 2001.

Daniel Smith,Executive Director.[FR Doc. 01–11792 Filed 5–9–01; 8:45 am]

BILLING CODE 1650–01–P

DEPARTMENT OF ENERGY

10 CFR Part 1044

RIN 1992–AA26

Office of Security and EmergencyOperations; Security Requirements forProtected Disclosures Under Section3164 of the National DefenseAuthorization Act for Fiscal Year 2000

AGENCY: Department of Energy (DOE).

ACTION: Interim final rule; completion ofregulatory review.

SUMMARY: In accordance with thememorandum of January 20, 2001, fromthe Assistant to the President and Chiefof Staff, entitled ‘‘Regulatory ReviewPlan,’’ published in the Federal Registeron January 24, 2001 (66 FR 7702), DOEtemporarily delayed for 60 days (66 FR8747, February 2, 2001) the effectivedate of the interim final rule entitled‘‘Security Requirements for ProtectedDisclosures Under Section 3164 of theNational Defense Authorization Act forFiscal Year 2000’’ published in theFederal Register on January 18, 2001(66 FR 4639). DOE has now completedits review of that regulation, and doesnot intend to initiate any furtherrulemaking action to modify itsprovisions. However, based on a writtencomment received on the interim finalrule, DOE may make minor, non-substantive changes to the rule. DOEwill announce any such changes in thenotice of final rulemaking that will bepublished in the Federal Register.

DATES: The effective date of the interimfinal rule amending 10 CFR part 1044published at 66 FR 4639, January 18,2001, and delayed at 66 FR 8747,February 2, 2001, is confirmed as April23, 2001.

FOR FURTHER INFORMATION CONTACT:Geralyn Praskievcz, Office of Securityand Emergency Operations, (202) 586–4451, [email protected].

Issued in Washington, DC on May 3, 2001.

Spencer Abraham,Secretary of Energy.[FR Doc. 01–11809 Filed 5–9–01; 8:45 am]


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23834 Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–CE–22–AD; Amendment39–12223; AD 2001–09–16]

RIN 2120–AA64

Airworthiness Directives; EagleAircraft Pty. Ltd. Model 150B Airplanes

AGENCY: Federal AviationAdministration, DOT.ACTION: Final rule.

SUMMARY: This amendment adopts anew airworthiness directive (AD) thatapplies to certain Eagle Aircraft Pty. Ltd.(Eagle) Model 150B airplanes. This ADrequires you to inspect the ruddercables for fraying, broken strands, etc.(referred to as damage), and replace anydamaged cables. This AD also requiresyou to replace the rudder cable pulleyswith larger diameter pulleys toeliminate the possibility of furtherdamage. This AD is the result ofmandatory continuing airworthinessinformation (MCAI) issued by theairworthiness authority for Australia.The actions specified by this AD areintended to detect and correct damagedrudder cables caused by chafing of thecable against the pulleys. Continuedairplane operation with damaged cablescould result in rudder cable systemfailure with possible loss of airplanecontrol.

DATES: This AD becomes effective onJune 29, 2001.

The Director of the Federal Registerapproved the incorporation by referenceof certain publications listed in theregulations as of June 29, 2001.ADDRESSES: You may get the serviceinformation referenced in this AD fromEagle Aircraft Pty. Ltd., Lot 700Cockburn Road, Henderson WA 6166Australia; telephone: (08) 9410 1077;facsimile: (08) 9410 2430. You mayexamine this information at the FederalAviation Administration (FAA), CentralRegion, Office of the Regional Counsel,Attention: Rules Docket No. 2000–CE–22–AD, 901 Locust, Room 506, KansasCity, Missouri 64106; or at the Office ofthe Federal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:Fredrick A. Guerin, Aerospace Engineer,FAA, Los Angeles Aircraft CertificationOffice, 3960 Paramount Boulevard,Lakewood, California 90712; telephone:(562) 627–5232; facsimile: (562) 627–5210.SUPPLEMENTARY INFORMATION:

Discussion

What Events Have Caused This AD?The Civil Aviation Safety Authority

(CASA), which is the airworthinessauthority for Australia, notified FAAthat an unsafe condition may exist oncertain Eagle Model 150B airplanes. TheCASA reports an occurrence wherefrayed rudder cables were found on anEagle Model 150B airplane. Furtherinvestigation reveals that the diameterof the rudder cable pulleys is too smalland cables rub against these pulleys.

What Are the Consequences If theCondition Is Not Corrected?

Continued airplane operation withdamaged cables could result in ruddercable system failure with possible lossof airplane control.

Has FAA Taken Any Action To ThisPoint?

We issued a proposal to amend part39 of the Federal Aviation Regulations(14 CFR part 39) to include an AD thatwould apply to certain Eagle Model150B airplanes. This proposal waspublished in the Federal Register as anotice of proposed rulemaking (NPRM)on January 2, 2001 (66 FR 59). TheNPRM proposed to require you to:—Inspect the rudder cables for fraying,

broken strands, etc. (referred to asdamage), and replace any damagedcables; and

—Replace the rudder cable pulleys withlarger diameter pulleys to eliminatethe possibility of further damage.

Was the Public Invited To Comment?Interested persons were afforded an

opportunity to participate in the makingof this amendment. We have given dueconsideration to the comment received.

Comment Disposition

What Is the Commenter’s Concern?Eagle Aircraft Pty. Ltd requests that

FAA withdraw the AD because pulley

replacement kits to correct the unsafecondition have been shipped to theUnited States and all affected airplanesmodels may already be in compliancewith this AD.

What Is FAA’s Response To theConcern?

We do not concur. Although theremay be airplanes on the U.S. Registerthat have already incorporated the kitinstallation, the AD is still justified.Issuing an AD is the only way to assurethat:—The installation of the pulley

replacement kit is incorporated onany U.S.-registered airplane;

—The actions are accomplished on anyairplane that is imported from anothercountry and placed on the U.S.Register; and

—The installation continues to beincorporated on all U.S. registeredairplanes.We have not changed the AD as a

result of this comment.

FAA’s Determination

What Is FAA’s Final Determination onThis Issue?

After careful review of all availableinformation related to the subjectpresented above, we have determinedthat air safety and the public interestrequire the adoption of the rule asproposed except for minor editorialcorrections. We determined that theseminor corrections:—Will not change the meaning of the

AD; and—Will not add any additional burden

upon the public than was alreadyproposed.

Cost Impact

How Many Airplanes Does This ADImpact?

We estimate that this AD affects 5airplanes in the U.S. registry.

What Is the Cost Impact of This AD onOwners/Operators of the AffectedAirplanes?

We estimate the following costs toaccomplish the inspection of the ruddercable and replacement of the ruddercable pulley:

Labor cost Parts cost Total costper airplane

Total coston U.S.

operators

5 workhours × $60 ................................................................................................................................... $286 $586 $2,930


23835Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Rules and Regulations

Replacement cables, if necessary, willcost $305 perairplane. We have no wayof determining the number of ruddercables that will be found damagedduring the inspection.

Compliance Time of this AD

What Is the Compliance Time of ThisAD?

The compliance time of this AD willbe to accomplish the inspection andrudder cable pulley replacement‘‘within the next 100 hours time-in-service (TIS) after the effective date ofthis AD’’ and to accomplish anynecessary cable replacement ‘‘prior tofurther flight after the inspection.’’

Why Are the Compliance Times of theAustralian AD Different From theCompliance Times in This AD?

The Australian AD requires (on EagleModel 150B airplanes registered inAustralia) the inspection within thenext 5 hours of service and requires thepulley replacement within 100 hours ofoperation. These are the compliancetimes specified in the serviceinformation.

We do not have justification to requirethe inspection within 5 hours of service.We use compliance times such as thiswhen we have identified an urgentsafety of flight situation. We believe that100 hours TIS will give the owners/operators of the affected airplanesenough time to have the inspection andreplacement accomplished withoutcompromising the safety of theairplanes.

By accomplishing both the inspectionand replacement at the same time, the

owners/operators of the affectedairplanes only have their airplanes outof service once instead of twice.

Regulatory Impact

Does This AD Impact Various Entities?

The regulations adopted herein willnot have a substantial direct effect onthe States, on the relationship betweenthe national government and the States,or on the distribution of power andresponsibilities among the variouslevels of government. Therefore, it isdetermined that this final rule does nothave federalism implications underExecutive Order 13132.

Does This AD Involve a Significant Ruleor Regulatory Action?

For the reasons discussed above, Icertify that this action (1) is not a‘‘significant regulatory action’’ underExecutive Order 12866; (2) is not a‘‘significant rule’’ under DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3)will not have a significant economicimpact, positive or negative, on asubstantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A copy of the finalevaluation prepared for this action iscontained in the Rules Docket. A copyof it may be obtained by contacting theRules Docket at the location providedunder the caption ADDRESSES.


Air transportation, Aircraft, Aviationsafety, Incorporation by reference,Safety.

Adoption of the Amendment

Accordingly, under the authoritydelegated to me by the Administrator,the Federal Aviation Administrationamends part 39 of the Federal AviationRegulations (14 CFR part 39) as follows:

PART 39—AIRWORTHINESSDIRECTIVES


Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. FAA amends § 39.13 by adding anew AD to read as follows:

2001–09–16 Eagle Aircraft Pty. Ltd.:Amendment 39–12223; Docket No.2000–CE–22–AD.

(a) What airplanes are affected by this AD?This AD affects Model 150B airplanes, serialnumbers 001 through 030, that arecertificated in any category.

(b) Who must comply with this AD?Anyone who wishes to operate any of theabove airplanes must comply with this AD.

(c) What problem does this AD address?The actions specified by this AD are intendedto detect and correct damaged rudder cablescaused by chafing of the cable against thepulleys. Continued airplane operation withdamaged cables could result in rudder cablesystem failure with possible loss of airplanecontrol.

(d) What actions must I accomplish toaddress this problem? To address thisproblem, you must accomplish the following:

Actions Compliance Procedures

(1) Inspect the rudder cables for fraying, brokenstrands, etc. (referred to as damage).

Within the next 100 hours time-in-service(TIS) after June 29, 2001 (the effective dateof this AD).

In accordance with Eagle Service Bulletin No.1059, dated January 21, 1999.

(2) Replace any rudder cables found damagedduring the inspection.

Prior to further flight after the inspection ......... In accordance with the instructions in themaintenance manual, as specified in EagleService Bulletin No. 1059, dated January21, 1999.

(3) Replace the rudder cable pulleys with newrudder cable pulleys, part numbersMS20220–1 and MS20220–2, change pulleyattachment, and reduce cable tension.

Prior to further flight after the inspection ......... In accordance with Eagle Service Bulletin No.1076, Revision 2, dated December 14,1999.

(4) Do not install any rudder cable pulleys thatare not part numbers MS20220–1 andMS20220–2 (with all associated hardware).

As of June 29, 2001 (the effective date of thisAD).

Not applicable.

(e) Can I comply with this AD in any otherway? You may use an alternative method ofcompliance or adjust the compliance time if:

(1) Your alternative method of complianceprovides an equivalent level of safety; and

(2) The Manager, Los Angeles AircraftCertification Office (ACO), approves youralternative. Submit your request through anFAA Principal Maintenance Inspector, who

may add comments and then send it to theManager, Los Angeles ACO.

Note 1: This AD applies to each airplaneidentified in paragraph (a) of this AD,regardless of whether it has been modified,altered, or repaired in the area subject to therequirements of this AD. For airplanes thathave been modified, altered, or repaired sothat the performance of the requirements of

this AD is affected, the owner/operator mustrequest approval for an alternative method ofcompliance in accordance with paragraph (e)of this AD. The request should include anassessment of the effect of the modification,alteration, or repair on the unsafe conditionaddressed by this AD; and, if you have noteliminated the unsafe condition, specificactions you propose to address it.



(f) Where can I get information about anyalready-approved alternative methods ofcompliance? Contact Fredrick A. Guerin,Aerospace Engineer, FAA, Los AngelesAircraft Certification Office, 3960 ParamountBoulevard, Lakewood, California 90712;telephone: (562) 627–5232; facsimile: (562)627–5210.

(g) What if I need to fly the airplane toanother location to comply with this AD? TheFAA can issue a special flight permit undersections 21.197 and 21.199 of the FederalAviation Regulations (14 CFR 21.197 and21.199) to operate your airplane to a locationwhere you can accomplish the requirementsof this AD.

(h) Are any service bulletins incorporatedinto this AD by reference? Actions requiredby this AD must be done in accordance withEagle Service Bulletin No. 1059, datedJanuary 21, 1999, and Eagle Service BulletinNo. 1076, Rev. 2, dated December 14, 1999.The Director of the Federal Register approvedthis incorporation by reference under 5U.S.C. 552(a) and 1 CFR part 51. You can getcopies from Eagle Aircraft Pty. Ltd., Lot 700Cockburn Road, Henderson WA 6166Australia. You can look at copies at the FAA,Central Region, Office of the RegionalCounsel, 901 Locust, Room 506, Kansas City,Missouri, or at the Office of the FederalRegister, 800 North Capitol Street, NW., suite700, Washington, DC.

(i) When does this amendment becomeeffective? This amendment becomes effectiveon June 29, 2001.

Note 2: The subject of this AD is addressedin Australian AD Number X–TS/2, effectiveDecember 24, 2000.

Issued in Kansas City, Missouri, on May 1,2001.James E. Jackson,Acting Manager, Small Airplane Directorate,Aircraft Certification Service.[FR Doc. 01–11457 Filed 5–9–01; 8:45 am]BILLING CODE 4910–13–P



14 CFR Part 39

[Docket No. 99–NM–85–AD; Amendment39–12222; AD 2001–09–15]

RIN 2120–AA64

Airworthiness Directives; BoeingModel 737–200 and –300 SeriesAirplanes Equipped with Cargo DoorsInstalled in Accordance WithSupplemental Type Certificate (STC)SA2969SO


SUMMARY: This amendment supersedesan existing airworthiness directive (AD),applicable to certain Boeing Model 737–200 and –300 series airplanes, that

currently requires repetitive inspectionsto detect cracking in the radii on thesupport angles on the lower jamb (latchlug fittings) of the main deck cargo door,and replacement of cracked parts. Thisamendment adds a requirement forinstallation of redesigned lower jamblatch support angles in the main cargodoor surround structure, which wouldterminate the repetitive inspections.This amendment is prompted by thedevelopment of a modification that willprovide better protection of the subjectarea against effects of structural fatigue.The actions specified by this AD areintended to prevent in-flight separationof the main deck cargo door from theairplane due to fatigue cracking on thesupport angles on the lower door jamb.DATES: Effective June 14, 2001.

The incorporation by reference ofPemco Service Bulletin 737–53–0003,Revision 4, dated February 22, 1995;and Pemco Service Bulletin 737–53–0003, Revision 5, dated March 25, 1999;as listed in the regulations, is approvedby the Director of the Federal Registeras of June 14, 2001.

The incorporation by reference ofPemco Alert Service Letter 737–53–0003, Revision 3, dated December 22,1994, as listed in the regulations, wasapproved previously by the Director ofthe Federal Register as of January 24,1995 (60 FR 2323, January 9, 1995).ADDRESSES: The service informationreferenced in this AD may be obtainedfrom Pemco Aeroplex, Inc., P.O. Box2287, Birmingham, Alabama 35201–2287. This information may beexamined at the Federal AviationAdministration (FAA), TransportAirplane Directorate, Rules Docket,1601 Lind Avenue, SW., Renton,Washington; or at the FAA, AtlantaAircraft Certification Office, One CrownCenter, 1895 Phoenix Boulevard, suite450, Atlanta, Georgia; or at the Office ofthe Federal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:William Culler, Airframe andPropulsion Branch, ACE–117A, FAA,Atlanta Aircraft Certification Office,One Crown Center, 1895 PhoenixBoulevard, suite 450, Atlanta, Georgia30337–2748; telephone (770) 703–6084;fax (770) 703–6097.SUPPLEMENTARY INFORMATION: Aproposal to amend part 39 of the FederalAviation Regulations (14 CFR part 39)by superseding AD 95–01–06 R1,amendment 39–9449 (60 FR 62192,December 5, 1995), which is applicableto certain Boeing Model 737–200 and–300 series airplanes, was published inthe Federal Register on November 22,1999 (64 FR 63757). The action

proposed to continue to requirerepetitive inspections to detect crackingin the radii on the support angles on thelower jamb (latch lug fittings) of themain deck cargo door, and replacementof cracked parts. That action also addsa requirement for installation ofredesigned lower jamb latch supportangles in the main cargo door surroundstructure, which would terminate therepetitive inspections.

CommentsInterested persons have been afforded

an opportunity to participate in themaking of this amendment. Dueconsideration has been given to thecomments received. Two commentersstate that the airplanes they operatewould not be affected by the proposedrule.

Include Additional Service InformationOne commenter asks that Pemco

Service Bulletin 737–53–0005, datedNovember 18, 1997, which specifiesalignment of the door latch base andframes, be included as an alternativemethod of compliance in paragraph(c)(1) of the proposed rule. Thecommenter also asks that the actionsspecified in that service bulletin beadded to the proposed rule asterminating action for the requirementsof AD 95–01–06 R1 (above). Thecommenter states that its fleet wasmodified per the service bulletinreferenced in the proposed rule, but oneairplane was misaligned between thedoor latch base and fuselage framing atFS 490.8. The commenter accomplishedthe alignment specified in servicebulletin 737–53–0005.

The FAA does not concur with thecommenter’s requests. The FAA doesnot find it necessary to revise this ADto include special instructions forairplanes modified with another servicebulletin. Operators should note thatmost AD actions address modificationsaffecting the subject area of the ADusing the note that appears as Note 1 ofthis AD, which states, ‘‘For airplanesthat have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approvalfor an alternative method of compliance(AMOC) in accordance with paragraph(c)(1) of this AD.’’ The AMOC letterwould be issued to the operator by theappropriate office, as stated inparagraph (c)(1).

Additionally, the service bulletinreferenced in the final rule specifiesinstallation of redesigned lower jamblatch support angles in the main cargodoor surround structure, which wouldterminate the repetitive inspections.



Modification of the door latch base forbetter alignment is a separate issue thatwas not addressed in the proposed rule,and would not meet the requirementsfor the terminating action. No change tothe final rule is necessary in this regard.

Conclusion

After careful review of the availabledata, including the comments notedabove, the FAA has determined that airsafety and the public interest require theadoption of the rule as proposed.

Cost Impact

There are approximately 32 airplanesof the affected design in the worldwidefleet. The FAA estimates that 2airplanes of U.S. registry will be affectedby this AD.

The inspection that is currentlyrequired by AD 95–01–06 R1, andretained in this AD, takes approximately8 work hours per airplane toaccomplish, at an average labor rate of$60 per work hour. Based on thesefigures, the cost impact of the currentlyrequired actions on U.S. operators isestimated to be $480 per airplane, perinspection cycle.

The new installation that is requiredby this AD takes approximately 500work hours per airplane to accomplish,at an average labor rate of $60 per workhour. Required parts will costapproximately $9,700 per airplane.Based on these figures, the cost impactof the requirements of this AD on U.S.operators is estimated to be $79,400, or$39,700 per airplane.

The cost impact figures discussedabove are based on assumptions that nooperator has yet accomplished any ofthe requirements of this AD action, andthat no operator would accomplishthose actions in the future if this ADwere not adopted. The cost impactfigures discussed in AD rulemakingactions represent only the timenecessary to perform the specific actionsactually required by the AD. Thesefigures typically do not includeincidental costs, such as the timerequired to gain access and close up,planning time, or time necessitated byother administrative actions.

Regulatory Impact

The regulations adopted herein willnot have a substantial direct effect onthe States, on the relationship betweenthe national Government and the States,or on the distribution of power andresponsibilities among the variouslevels of government. Therefore, it isdetermined that this final rule does nothave federalism implications underExecutive Order 13132.

For the reasons discussed above, Icertify that this action (1) is not a‘‘significant regulatory action’’ underExecutive Order 12866; (2) is not a‘‘significant rule’’ under DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3)will not have a significant economicimpact, positive or negative, on asubstantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A final evaluation hasbeen prepared for this action and it iscontained in the Rules Docket. A copyof it may be obtained from the RulesDocket at the location provided underthe caption ADDRESSES.




Accordingly, pursuant to theauthority delegated to me by theAdministrator, the Federal AviationAdministration amends part 39 of theFederal Aviation Regulations (14 CFRpart 39) as follows:



Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended byremoving amendment 39–9449 (60 FR62192, December 5, 1995), and byadding a new airworthiness directive(AD), amendment 39–12222, to read asfollows:2001–09–15 Boeing: Amendment 39–12222.

Docket 99-NM–85-AD. Supersedes AD95–01–06 R1, Amendment 39–9449.

Applicability: Model 737–200 and -300series airplanes equipped with main deckcargo doors installed in accordance withsupplemental type certificate (STC)SA2969SO, certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (c)(1) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.

Compliance: Required as indicated, unlessaccomplished previously.

To prevent in-flight separation of the maindeck cargo door from the airplane,accomplish the following:

Note 2: This AD references Pemco AlertService Letter 737–53–0003, Revision 3,dated December 22, 1994; Pemco ServiceBulletin 737–53–0003, Revision 4, datedFebruary 22, 1995; and Pemco ServiceBulletin 737–53–0003, Revision 5, datedMarch 25, 1999; for information concerninginspection and replacement procedures. Inaddition, this AD specifies replacementrequirements different from those includedin the service letter or service bulletin. Wherethere are differences between the AD and theservice letter or service bulletin, the ADprevails.

Restatement of Requirements AD 95–01–06R1

Repetitive Inspections(a) Within 50 flight cycles after January 24,

1995 (the effective date of AD 95–01–06,amendment 39–9117), or within 50 flightcycles after installation of STC SA2969SO,whichever occurs later, perform a detailedvisual inspection to detect cracking in theradii on the support angles on the lower jambof the main deck cargo door, in accordancewith Pemco Alert Service Letter 737–53–0003, Revision 3, dated December 22, 1994.

(1) If no cracking is detected, repeat thedetailed visual inspection thereafter atintervals not to exceed 450 flight cycles.

(2) If any cracking is detected, prior tofurther flight, replace the cracked part witha new part in accordance with the alertservice letter. Repeat the detailed visualinspection thereafter at intervals not toexceed 450 flight cycles.

Note 3: For the purposes of this AD, adetailed visual inspection is defined as: ‘‘Anintensive visual examination of a specificstructural area, system, installation, orassembly to detect damage, failure, orirregularity. Available lighting is normallysupplemented with a direct source of goodlighting at intensity deemed appropriate bythe inspector. Inspection aids such as mirror,magnifying lenses, etc., may be used. Surfacecleaning and elaborate access proceduresmay be required.’’

New Requirements of This AD

Terminating Action(b) Within 1,500 flight cycles after the

effective date of this AD, install redesignedlower jamb latch lug support angles in themain cargo door surround structure inaccordance with Pemco Service Bulletin737–53–0003, Revision 4, dated February 22,1995, or Revision 5, dated March 25, 1999.This action constitutes terminating action forthe requirements of this AD.

Alternative Methods of Compliance(c)(1) An alternative method of compliance

or adjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager, AtlantaAircraft Certification Office (ACO), FAA.Operators shall submit their requests throughan appropriate FAA Principal Maintenance



Inspector, who may add comments and thensend it to the Manager, Atlanta ACO.

(2) Alternative methods of compliance,approved previously in accordance with AD95–01–06 R1, amendment 39–9449, areapproved as alternative methods ofcompliance with paragraphs (a) and (b) ofthis AD.

Note 4: Information concerning theexistence of approved alternative methods ofcompliance with this AD, if any, may beobtained from the Atlanta ACO.

Special Flight Permits

(d) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.

Incorporation by Reference

(e) The actions shall be done in accordancewith Pemco Alert Service Letter 737–53–0003, Revision 3, dated December 22, 1994;Pemco Service Bulletin 737–53–0003,Revision 4, dated February 22, 1995, orPemco Service Bulletin 737–53–0003,Revision 5, dated March 25, 1999; asapplicable.

(1) The incorporation by reference ofPemco Service Bulletin 737–53–0003,Revision 4, dated February 22, 1995; andPemco Service Bulletin 737–53–0003,Revision 5, dated March 25, 1999; isapproved by the Director of the FederalRegister in accordance with 5 U.S.C. 552(a)and 1 CFR part 51.

(2) The incorporation by reference ofPemco Alert Service Letter 737–53–0003,Revision 3, dated December 22, 1994, wasapproved previously by the Director of theFederal Register as of January 24, 1995 (60 FR2323, January 9, 1995).

(3) Copies may be obtained from PemcoAeroplex, Inc., P.O. Box 2287, Birmingham,Alabama 35201–2287. Copies may beinspected at the FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW., Renton,Washington; or at the FAA, Atlanta ACO,One Crown Center, 1895 Phoenix Boulevard,suite 450, Atlanta, Georgia; or at the Officeof the Federal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.

Effective Date

(f) This amendment becomes effective onJune 14, 2001.

Issued in Renton, Washington, on May 1,2001.

Donald L. Riggin,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 01–11455 Filed 5–9–01; 8:45 am]




14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; Airbus ModelA330–243, –341, –342, and –343 SeriesAirplanes Equipped With Rolls RoyceTrent 700 Series Engines

AGENCY: Federal AviationAdministration, DOT.ACTION: Final rule; request forcomments.

SUMMARY: This amendment adopts anew airworthiness directive (AD) that isapplicable to Airbus Model A330–243,–341, –342, and –343 series airplanesequipped with Rolls Royce Trent 700series engines. This action requiresrepetitive inspections of certaincomponents, and corrective action, ifnecessary. This action is necessary todetect and correct fatigue cracking of thehinge assemblies and the 12 o’clockbeam structure of the thrust reverser C-duct, which could cause failure of thethrust reverser hinge, resulting inseparation of the thrust reverser fromthe airplane. This action is intended toaddress the identified unsafe condition.DATES: Effective May 25, 2001.

The incorporation by reference ofcertain publications listed in theregulations is approved by the Directorof the Federal Register as of May 25,2001.

Comments for inclusion in the RulesDocket must be received on or beforeJune 11, 2001.ADDRESSES: Submit comments intriplicate to the Federal AviationAdministration (FAA), TransportAirplane Directorate, ANM–114,Attention: Rules Docket No. 2000–NM–389–AD, 1601 Lind Avenue, SW.,Renton, Washington 98055–4056.Comments may be inspected at thislocation between 9 a.m. and 3 p.m.,Monday through Friday, except Federalholidays. Comments may be submittedvia fax to (425) 227–1232. Commentsmay also be sent via the Internet usingthe following address: [email protected]. Comments sentvia fax or the Internet must contain‘‘Docket No. 2000–NM–389–AD’’ in thesubject line and need not be submittedin triplicate. Comments sent via theInternet as attached electronic files mustbe formatted in Microsoft Word 97 forWindows or ASCII text.

The service information referenced inthis AD may be obtained from Airbus

Industrie, 1 Rond Point MauriceBellonte, 31707 Blagnac Cedex, France.This information may be examined atthe FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW.,Renton, Washington; or at the Office ofthe Federal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT: TimBackman, Aerospace Engineer,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2797;fax (425) 227–1149.SUPPLEMENTARY INFORMATION: TheDirection Generale de l’Aviation Civile(DGAC), which is the airworthinessauthority for France, notified the FAAthat an unsafe condition may exist onAirbus Model A330–243, –341, –342,and –343 series airplanes equipped withRolls Royce Trent 700 series engines.The DGAC advises that, during flighttests, unexpectedly high fatigue loadswere measured on the hinges integratedon the 12 o’clock beam which forms theupper edge of the thrust reverser C-duct.The hinges are unable to withstandthese high fatigue loads for the designlife of the airplane. Resulting fatiguecracks, if not detected and corrected,could cause failure of the thrust reverserhinge, which could result in separationof the thrust reverser from the airplane.

Explanation of Relevant ServiceInformation

Airbus has issued Service BulletinA330–78–3006, Revision 05, datedMarch 6, 2001, which describesprocedures for a general visualinspection of the hinge assemblies andthe beam structure of the upper extremeedge of the thrust reverser unit C-ductfor cracks, and corrective action, ifnecessary; a detailed visual inspection,if applicable, of hinges 2, 3, 4, and 5 inthe same area for cracks, and correctiveaction, if necessary; and repetitions ofthese inspections, as applicable, atapplicable intervals. Accomplishment ofthe actions specified in the servicebulletin is intended to adequatelyaddress the identified unsafe condition.The DGAC classified this servicebulletin as mandatory and issuedFrench airworthiness directive 1997–118–047(B) R2, dated September 20,2000, in order to assure the continuedairworthiness of these airplanes inFrance.

Airbus Service Bulletin A330–78–3006, Revision 05, dated March 6, 2001,references Rolls Royce Service BulletinRB.211–78–B115, Revision 2, datedOctober 29, 1999, as an additionalsource of service information for



accomplishment of the inspections andcorrective actions.

FAA’s ConclusionsThese airplane models are

manufactured in France and are typecertificated for operation in the UnitedStates under the provisions of section21.29 of the Federal AviationRegulations (14 CFR 21.19) and theapplicable bilateral airworthinessagreement. Pursuant to this bilateralairworthiness agreement, the DGAC haskept the FAA informed of the situationdescribed above. The FAA hasexamined the findings of the DGAC,reviewed all available information, anddetermined that AD action is necessaryfor products of this type design that arecertificated for operation in the UnitedStates.

Explanation of Requirements of theRule

Since an unsafe condition has beenidentified that is likely to exist ordevelop on other airplanes of the sametype design that may be registered in theUnited States at some time in the future,this AD is being issued to detect andcorrect fatigue cracking of the hingeassemblies and the 12 o’clock beamstructure of the thrust reverser C-duct,which could cause failure of the thrustreverser hinge, resulting in separation ofthe thrust reverser from the airplane.This AD requires accomplishment of theactions specified in the Airbus servicebulletin described previously.

Cost ImpactNone of the airplanes affected by this

action are on the U.S. Register. Allairplanes included in the applicabilityof this rule currently are operated bynon-U.S. operators under foreignregistry; therefore, they are not directlyaffected by this AD action. However, theFAA considers that this rule isnecessary to ensure that the unsafecondition is addressed in the event thatany of these subject airplanes areimported and placed on the U.S.Register in the future.

Should an affected airplane beimported and placed on the U.S.Register in the future, it would requireapproximately 5 work hours toaccomplish the required inspections, atan average labor rate of $60 per workhour. Based on these figures, the costimpact of this AD would be $300 perairplane, per inspection cycle.

Determination of Rule’s Effective DateSince this AD action does not affect

any airplane that is currently on theU.S. register, it has no adverse economicimpact and imposes no additional

burden on any person. Therefore, priornotice and public procedures hereon areunnecessary and the amendment may bemade effective in less than 30 days afterpublication in the Federal Register.

Comments InvitedAlthough this action is in the form of

a final rule and was not preceded bynotice and opportunity for publiccomment, comments are invited on thisrule. Interested persons are invited tocomment on this rule by submittingsuch written data, views, or argumentsas they may desire. Communicationsshall identify the Rules Docket numberand be submitted in triplicate to theaddress specified under the captionADDRESSES. All communicationsreceived on or before the closing datefor comments will be considered, andthis rule may be amended in light of thecomments received. Factual informationthat supports the commenter’s ideas andsuggestions is extremely helpful inevaluating the effectiveness of the ADaction and determining whetheradditional rulemaking action would beneeded.

Submit comments using the followingformat:

• Organize comments issue-by-issue.For example, discuss a request tochange the compliance time and arequest to change the service bulletinreference as two separate issues.

• For each issue, state what specificchange to the proposed AD is beingrequested.

• Include justification (e.g., reasons ordata) for each request.

Comments are specifically invited onthe overall regulatory, economic,environmental, and energy aspects ofthe rule that might suggest a need tomodify the rule. All commentssubmitted will be available, both beforeand after the closing date for comments,in the Rules Docket for examination byinterested persons. A report thatsummarizes each FAA-public contactconcerned with the substance of this ADwill be filed in the Rules Docket.

Commenters wishing the FAA toacknowledge receipt of their commentssubmitted in response to this rule mustsubmit a self-addressed, stampedpostcard on which the followingstatement is made: ‘‘Comments toDocket Number 2000–NM–389–AD.’’The postcard will be date stamped andreturned to the commenter.

Regulatory ImpactThe regulations adopted herein will

not have a substantial direct effect onthe States, on the relationship betweenthe national Government and the States,or on the distribution of power and

responsibilities among the variouslevels of government. Therefore, it isdetermined that this final rule does nothave federalism implications underExecutive Order 13132.








Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended byadding the following new airworthinessdirective:2001–09–14 Airbus Industrie: Amendment

39–12221. Docket 2000–NM–389–AD.Applicability: Model A330–243, –341,

–342 and –343 series airplanes; certificatedin any category; that are equipped with RollsRoyce Trent 700 series engines.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (b) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.




To detect and correct fatigue cracking ofthe hinge assemblies and the 12 o’clock beamstructure of the thrust reverser C-duct, whichcould cause failure of the thrust reverserhinge, resulting in separation of the thrustreverser from the airplane, accomplish thefollowing:

Initial and Repetitive Inspections(a) Perform a general visual inspection of

the hinge assemblies and the 12 o’clock beamstructure of the right and left thrust reversersfor cracks, in accordance with Airbus ServiceBulletin A330–78–3006, Revision 05, datedMarch 6, 2001, according to the criteria inTable 1 of this AD, below:

TABLE 1—INITIAL INSPECTION

If— Then inspect—

Neither Airbus Modi-fication 46879 nor47358 has beenembodied on theairplane.

Before the accumula-tion of 1,200 totalflight cycles, orwithin 6 monthsafter the effectivedate of this AD,whichever occursfirst.

Either Airbus Modi-fication 46879 or47358 have beenembodied on theairplane.

Before the accumula-tion of 2,000 totalflight cycles, or 6months after the ef-fective date of thisAD, whichever oc-curs first.

(1) If no crack is found during the generalvisual inspection required by paragraph (a) ofthis AD, before further flight, perform adetailed visual inspection of the lugs ofhinges 2, 3, 4, and 5 of the right and leftthrust reversers for cracks in accordance withAirbus Service Bulletin A330–78–3006,Revision 05, dated March 6, 2001.

(i) If no crack is found as a result of thedetailed visual inspection mandated byparagraph (a)(1) of this AD, repeat the generalvisual inspection mandated by paragraph (a)of this AD according to the schedule in Table2 of this AD.

(ii) If a crack is found as a result of thedetailed visual inspection mandated byparagraph (a)(1) of this AD:

(A) Before further flight, replace theaffected thrust reverser with a new orserviceable thrust reverser in accordancewith Airbus Service Bulletin A330–78–3006,Revision 05, dated March 6, 2001.

(B) Repeat the general visual inspectionmandated in paragraph (a) of this ADaccording to the schedule in Table 2 of thisAD.

(2) If a crack is found during the generalvisual inspection required by paragraph (a) ofthis AD, accomplish the actions required byparagraphs (a)(2)(i) and (a)(2)(ii) of this AD.

(i) Before further flight, replace the affectedthrust reverser with a new or serviceablethrust reverser in accordance with AirbusService Bulletin A330–78–3006, Revision 05,dated March 6, 2001.

(ii) Repeat the general visual inspectionmandated in paragraph (a) of this AD

according to the schedule in Table 2 of thisAD, below:

TABLE 2.—REPETITIVE INSPECTIONS

If—Then repeat the in-spection at intervals

not to exceed—

Neither Airbus Modi-fication 46879 nor47358 has beenembodied on theairplane.

1,200 flight cycles.

Either Airbus Modi-fication 46879 or47358 has beenembodied on theairplane.

2,000 flight cycles.

Note 2: For the purposes of this AD, ageneral visual inspection is defined as: ‘‘Avisual examination of an interior or exteriorarea, installation, or assembly to detectobvious damage, failure, or irregularity. Thislevel of inspection is made under normallyavailable lighting conditions such asdaylight, hangar lighting, flashlight, or drop-light, and may require removal or opening ofaccess panels or doors. Stands, ladders, orplatforms may be required to gain proximityto the area being checked.’’

Note 3: For the purposes of this AD, adetailed visual inspection is defined as: ‘‘Anintensive visual examination of a specificstructural area, system, installation, orassembly to detect damage, failure, orirregularity. Available lighting is normallysupplemented with a direct source of goodlighting at intensity deemed appropriate bythe inspector. Inspection aids such as amirror, magnifying lenses, etc., may be used.Surface cleaning and elaborate accessprocedures may be required.’’

Alternative Methods of Compliance(b) An alternative method of compliance or

adjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager,International Branch, ANM–116, TransportAirplane Directorate, FAA. Operators shallsubmit their requests through an appropriateFAA Principal Maintenance Inspector, whomay add comments and then send it to theManager, International Branch, ANM–116.

Note 4: Information concerning theexistence of approved alternative methods ofcompliance with this AD, if any, may beobtained from the International Branch,ANM–116.


(c) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.


(d) The actions shall be done in accordancewith Airbus Service Bulletin A330–78–3006,Revision 05, dated March 6, 2001. Thisincorporation by reference was approved by

the Director of the Federal Register inaccordance with 5 U.S.C. 552(a) and 1 CFRpart 51. Copies may be obtained from AirbusIndustrie, 1 Rond Point Maurice Bellonte,31707 Blagnac Cedex, France. Copies may beinspected at the FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW., Renton,Washington; or at the Office of the FederalRegister, 800 North Capitol Street, NW., suite700, Washington, DC.

Note 5: The subject of this AD is addressedin French airworthiness directive 1997–118–047(B) R2, dated September 20, 2000.

Effective Date

(e) This amendment becomes effective onMay 25, 2001.

Issued in Renton, Washington, on April 30,2001.Donald L. Riggin,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 01–11223 Filed 5–9–01; 8:45 am]BILLING CODE 4910–13–P



14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; McDonnellDouglas Model DC–9–80 SeriesAirplanes and Model MD–88 Airplanes


SUMMARY: This amendment supersedesan existing airworthiness directive (AD),applicable to certain McDonnellDouglas Model DC–9–80 seriesairplanes and Model MD–88 airplanes,that currently requires a one-timeinspection to detect cracking of themain landing gear (MLG) pistons, andrepair or replacement of the pistonswith new or serviceable parts, ifnecessary. This amendment requires,among other actions, repetitive dyepenetrant and magnetic particleinspections to detect cracks of the MLGpistons; repair and replacement ofdiscrepant parts; and installation of apreventative modification; asapplicable. This amendment alsoprovides for an optional terminatingaction for certain MLG pistons. Thisamendment is prompted by additionalreports of failure of the MLG pistonsduring towing of the airplanes. Theactions specified by this AD areintended to prevent fatigue cracking ofthe MLG pistons, which could result in



failure of the pistons and subsequentdamage to the airplane structure orinjury to airplane occupants.DATES: Effective June 14, 2001.

The incorporation by reference ofcertain publications listed in theregulations is approved by the Directorof the Federal Register as of June 14,2001.ADDRESSES: The service informationreferenced in this AD may be obtainedfrom Boeing Commercial AircraftGroup, Long Beach Division, 3855Lakewood Boulevard, Long Beach,California 90846, Attention: Data andService Management, Dept. C1–L5A(D800–0024). This information may beexamined at the Federal AviationAdministration (FAA), TransportAirplane Directorate, Rules Docket,1601 Lind Avenue, SW., Renton,Washington; or at the FAA, Los AngelesAircraft Certification Office, 3960Paramount Boulevard, Lakewood,California; or at the Office of the FederalRegister, 800 North Capitol Street, NW.,suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:Brent Bandley, Aerospace Engineer,Airframe Branch, ANM–120L, FAA, LosAngeles Aircraft Certification Office,3960 Paramount Boulevard, Lakewood,California 90712; telephone (310) 627–5237; fax (310) 627–5210.SUPPLEMENTARY INFORMATION: Aproposal to amend part 39 of the FederalAviation Regulations (14 CFR part 39)by superseding AD 96–19–09,amendment 39–9756 (61 FR 48617,September 16, 1996), which isapplicable to certain McDonnellDouglas Model DC–9–80 seriesairplanes and Model MD–88 airplanesseries airplanes, was published in theFederal Register on October 4, 2000 (65FR 59146). The action proposed torequire, among other actions, repetitivedye penetrant and magnetic particleinspections to detect cracks of the mainlanding gear (MLG) pistons; repair andreplacement of discrepant parts; andinstallation of a preventativemodification; as applicable. The actionalso proposed an optional terminatingaction for certain MLG pistons.

Comments ReceivedInterested persons have been afforded

an opportunity to participate in themaking of this amendment. Dueconsideration has been given to thecomments received.

Request To Revise Note 1 of theProposed AD

One commenter request that thefollowing sentence be added to Note 1of the proposed AD: ‘‘Modification per

previous revisions of the referencedservice bulletin or dispositions from themanufacturer that occurred prior to theeffective date of the AD comply with theAD.’’

The FAA partially agrees. We do notagree to include the sentence suggestedby the commenter. However, asdiscussed below, we have included newnotes in the final rule to give operatorscredit for accomplishing thepreventative modification before theeffective date of this AD.

Request To Give Credit for PreventativeModifications Accomplished Previously

One commenter requests thatoperators be given credit foraccomplishing the preventativemodification per the original version, orRevisions 01 through 03 of McDonnellDouglas Service Bulletin MD80–32–277,or procedures developed and analyzedby Boeing and approved by the FAAbefore the effective date of the AD. Thecommenter notes that Revision 04 ofService Bulletin MD80–32–277(referenced as the appropriate source ofservice information for the requirementsof this AD) contains procedures for wetgrinding and flap shot peening, whichwere not recommended in the previousrevisions of the service bulletin.

Two other commenters request thatthe applicability of paragraph (e)(2)(i) ofthe proposed AD include any MLGpiston modified before the effective dateof the AD per the original version, orRevisions 01 through 03 of McDonnellDouglas Service Bulletin MD80–32–277,or Service Rework DrawingSR08320081.

One of the commenters notes that oneof the paragraphs in the Discussionsection of the proposed AD states‘‘Operators should note that, althoughthe service bulletin specifies that themanufacturer may be contacted fordisposition of certain repair conditions,this proposal would require the repair ofthose conditions to be accomplished pera method approved by the FAA. Thecommenter requests that it be revised to‘‘* * * certain repair conditions, for allrepairs performed after the effective dateof this AD, this proposed AD * * * .’’

The FAA partially agrees. We findthat modification of any MLG piston orreplacement with a modified MLG perthe original version, and Revisions 1through 4 of the referenced servicebulletin, Service Rework DrawingSR08320081, or any FAA-approvedpreventative modification to MLGpistons, before the effective date of thisAD, is considered acceptable forcompliance with the preventativemodification requirements ofparagraphs (a)(3), (b)(1)(iii), (b)(2), and

(c)(1) of this AD, and with thereplacement requirements of paragraphs(c)(2) and (d)(1) of this AD. Therefore,we have included new notes in the finalrule to clarify this point. With theinclusion of these new notes, we findthat the applicability of paragraph(e)(2)(i) of the final rule does not needto be changed. We also find that arevision to the Discussion section, assuggested by the commenter, is notnecessary because that section does notreappear in the final rule.

Request To Include Reidentified PartNumber

Two commenters request thatparagraph (e) of the proposed AD alsoreference the part number (P/N) forMLG pistons that were modified andreidentified as P/N SR09320081–3through SR09320081–13 inclusive,depending on its corresponding originalidentity. One of the commenters statesthat it tracks the MLG pistons by theapplicable ‘‘SR’’ part number, which arelisted in McDonnell Douglas ServiceBulletin MD80–32–277, Revisions 01through 04.

The FAA agrees that the affected MLGpiston, P/N 5935347–1 through5935347–509 inclusive, identified inparagraph (e) of the AD, have beenmodified and reidentified as P/NSR09320081–3 through SR09320081–13inclusive. We have revised paragraph (e)of the final rule to clarify this point.

Request For Clarification ofApplicability of Paragraph (e)(2)(ii) ofthe Proposed AD

The applicability of paragraph(e)(2)(ii) of the proposed AD reads ‘‘Forany MLG piston that has been modifiedprior to the effective date of this AD.’’One commenter interprets this to meanpistons modified prior to December 7,1999 (the issuance date of Revision 04of McDonnell Douglas Service BulletinMD80–32–277). The commenter statesthat it is reasonable to assume that somepistons may have been modified byRevision 04 of the referenced servicebulletin since its issuance in December1999.

From this comment, the FAA infersthat the commenter is requesting thatthe applicability of paragraph (e)(2)(ii)of the proposed AD be clarified. Weagree that clarification is necessary. Thecommenter is incorrect in itsinterpretation that the applicability ofparagraph (e)(2)(ii) of the AD refers toMLG pistons modified per Revision 04of McDonnell Douglas Service BulletinMD80–32–277 prior to December 7,1999. Our intent was that paragraph(e)(2)(ii) of the AD be applicable to ‘‘Forany MLG piston that has been modified



per service information other thanRevision 04 of McDonnell DouglasService Bulletin MD80–32–277 and notinspected per Revision 04 of the servicebulletin prior to the effective date of thisAD.’’ We have revised paragraph(e)(2)(ii) of the final rule accordingly toclarify this point.

Requests To Give Credit for RepetitiveInspections Since Modification

Several commenters request that theFAA give credit to operators that aredoing repetitive inspections every 2,500landings since modification of the MLGpistons per McDonnell Douglas ServiceBulletin MD80–32–277, Revision 04,dated December 7, 1999, for the initialinspections required by paragraph(e)(2)(ii) of the proposed AD and therepetitive inspections required byparagraph (f) of the proposed AD. Twocommenters also state that paragraph(h)(2) of the proposed AD has a similarrequirement and request that paragraph(h)(2) of the proposed AD also berevised.

Another commenter states that, basedon its service history, any MLG pistonthat has been inspected every 2,500landings provides an equivalent level ofsafety. The commenter has no objectionto the proposed initial compliance timeof within 1,500 landings or 12 monthsafter the effective date of this AD forMLG pistons that have not beeninspected.

The FAA does not consider that achange, as requested by thecommenters, to the final rule isnecessary. Operators are given credit forwork previously performed by means ofthe phrase in the ‘‘Compliance’’ sectionof the AD that states, ‘‘Required asindicated, unless accomplishedpreviously.’’ Therefore, in the case ofparagraphs (f) and (h)(2) of this AD, ifthe required inspection has beenaccomplished prior to the effective dateof this AD, this AD does not require thatit be repeated. However, this AD doesrequire that repetitive inspections beconducted thereafter at intervals not toexceed 2,500 landings (if no cracking isdetected, as specified in paragraphs (f)and (i) of the final rule), and that otherfollow-on actions be accomplishedwhen indicated.

Request To Revise A CertainCompliance Time in Paragraph (f) of theProposed AD

Several commenters request that thecompliance time of ‘‘prior to theaccumulation of 30,000 or more totallandings on the MLG piston’’ specifiedin paragraph (f) of the proposed AD bechanged to ‘‘within 30,000 landingssince modification of the MLG.’’ One of

the commenters states that the subjectcompliance time of paragraph (f) of theproposed AD conflicts with paragraph(a)(3) of the proposed AD, whichrequires the preventative modificationof certain MLG pistons (non-modified)that have accumulated 30,000 or moretotal landings to be done ‘‘within 2years or 5,000 landings on the MLGpiston after the effective date of thisAD.’’ In this scenario, the commentercontends that a non-modified piston hasan extended service allowance andmodified pistons have been penalized.

Another commenter states that theproposed compliance time conflictswith the requirements of paragraphs(b)(1)(iii) and (e)(2) of the proposed AD.Paragraph (b)(1)(iii) of the proposed ADrequires the preventative modification‘‘prior to the accumulation of 30,000 ormore total landings on the MLG piston.’’Paragraph (e)(2) of the proposed ADrequires dye penetrant and magneticparticle inspections for any MLG pistonthat has accumulated less than 30,000landings since accomplishment of themodification.

It was the FAA’s intent that thereplacement required by paragraph (f) ofthe proposed AD be accomplishedwithin 30,000 landing sincemodification of the MLG. Therefore, weagree with the commenters to revise thecompliance time of paragraph (f) of thefinal rule from ‘‘prior to theaccumulation of 30,000 or more totallandings on the MLG piston’’ to ‘‘within30,000 landings since modification ofthe MLG’’ and have revised the finalrule accordingly.

Request To Revise Phrase ‘‘Since Date ofManufacture’’

One commenter requests that thephrase ‘‘since date of manufacture’’ berevised to ‘‘since date of installation’’ inparagraphs (h)(1), (h)(2), and (h)(3) ofthe proposed AD. The commenter statesthat industry’s standard for trackingsafe-life landing gear components istotal landings accumulated from thedate of installation, not the date ofmanufacture.

The FAA does not agree. BecauseMLG pistons can be taken off airplanesand sold to other operators, therepotentially could be multipleinstallations. Operators maymisinterpret ‘‘date of installation’’ tomean that every time a MLG piston isinstalled, the number of landingsreturns to zero. Therefore, we find ‘‘dateof manufacture’’ (i.e., since new) to bethe correct phrase.

Request To Reference Correct ServiceBulletin for Optional TerminatingAction

Several commenters request thatparagraph (l) of the proposed AD berevised to reference McDonnell DouglasService Bulletin MD80–32–309, whichwas issued by Boeing on January 31,2000, instead of McDonnell DouglasService Bulletin MD80–32–277,Revision 04, dated December 7, 1999.One commenter states that ServiceBulletin MD80–32–277 does notreference any configuration beyond partnumber (P/N) 5935347–511 forreplacement of prior configurations. Thecommenter also states that ServiceBulletin MD80–32–309 specifies thatMLG piston, P/N 5935347–517, is anapproved configuration for closingaction, and that it is an FAA-approvedalternative method of compliance forboth AD’s 96–19–09 and 99–13–07.

The FAA agrees. We have reviewedMcDonnell Douglas Service BulletinMD80–32–277, Revision 04, datedDecember 7, 1999, and acknowledgethat it does not describe procedures forreplacement of any MLG piston with aMLG piston, P/N 5935347–517. Thecorrect service information foraccomplishing the replacementspecified in paragraph (l) of this AD isMcDonnell Douglas Service BulletinMD80–32–309, dated January 31, 2000.We have revised paragraph (l) of thefinal rule accordingly.

Operators should note that ServiceBulletin MD80–32–309 also describesprocedures for replacement of the MLGpiston due to cracking near the radiusof the jackball fitting. However, thisproposed AD does not address theactions associated with the jackballfitting. We may consider issuing aseparate rulemaking action to supersedeAD 99–13–07.

Request To Include Inspection ofJackball Fitting

One commenter requests that theproposed AD require an inspection/rework of the aft torque link lug andinspection of the jackball fitting. Thecommenter provided no explanation forits request. The FAA does not agree. Asdiscussed above, the FAA may issue aseparate rulemaking action to addressany identified unsafe conditionassociated with the jackball fitting.

Question About How To Determine theInspection Interval and Imposed LifeLimit

One commenter asks how todetermine the inspection interval andthe imposed life limit for MLG pistonsthat were previously modified per



McDonnell Douglas Service BulletinMD80–32–277, when it cannotdetermine the times and cyclesaccumulated at the time of modification.

The FAA finds that, if the cycle countof the MLG piston cannot be determinedat the time of modification, operatorsshould work with an appropriate FAAPrincipal Maintenance Inspector (PMI),the Manager of the Los Angeles AircraftCertification Office (ACO), and theairplane manufacturer to resolve theissue.

ConclusionAfter careful review of the available

data, including the comments notedabove, the FAA has determined that airsafety and the public interest require theadoption of the rule with the changespreviously described. The FAA hasdetermined that these changes willneither increase the economic burdenon any operator nor increase the scopeof the AD.

Cost ImpactThere are approximately 1,200 Model

DC–9–80 series airplanes and ModelMD–88 airplanes of the affected designin the worldwide fleet. The FAAestimates that 700 airplanes of U.S.registry will be affected by this AD.

Should an operator be required to dothe dye penetrant and magnetic particleinspections, it will take approximately 2work hours per MLG piston toaccomplish the inspections, at anaverage labor rate of $60 per work hour.Based on these figures, the cost impactof these inspections required by this ADon U.S. operators is estimated to be$120 per MLG piston.

Should an operator be required to dothe preventative modification, it willtake approximately 6 work hours perMLG piston to accomplish theinspections, at an average labor rate of$60 per work hour. Based on thesefigures, the cost impact of theseinspections required by this AD on U.S.operators is estimated to be $360 perMLG piston.

The cost impact figures discussedabove are based on assumptions that nooperator has yet accomplished any ofthe requirements of this AD action, andthat no operator would accomplishthose actions in the future if this ADwere not adopted. The cost impactfigures discussed in AD rulemakingactions represent only the timenecessary to perform the specific actionsactually required by the AD. Thesefigures typically do not includeincidental costs, such as the timerequired to gain access and close up,planning time, or time necessitated byother administrative actions.

Should an operator elect toaccomplish the optional terminatingaction that is provided by this ADaction, it would take approximately 31work hours per MLG piston toaccomplish it, at an average labor rate of$60 per work hour. The cost of requiredparts would be approximately $107,070per MLG piston. Based on these figures,the cost impact of the optionalterminating action would be $108,930per MLG piston.

Regulatory ImpactThe regulations adopted herein will

not have a substantial direct effect onthe States, on the relationship betweenthe national Government and the States,or on the distribution of power andresponsibilities among the variouslevels of government. Therefore, it isdetermined that this final rule does nothave federalism implications underExecutive Order 13132.


List of Subjects in 14 CFR Part 39Air transportation, Aircraft, Aviation

safety, Incorporation by reference,Safety.





Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended byremoving amendment 39–9756 (61 FR48617, September 16, 1996), and byadding a new airworthiness directive(AD), amendment 39–12225, to read asfollows:

2001–09–18 McDonnell Douglas:Amendment 39–12225. Docket 99–NM–164–AD. Supersedes AD 96–19–09,Amendment 39–9756.

Applicability: Model DC–9–81 (MD–81),DC–9–82 (MD–82), DC–9–83 (MD–83), andDC–9–87 (MD–87) series airplanes; andModel MD–88 airplanes; as listed inMcDonnell Douglas Service Bulletin MD80–32–277, Revision 04, dated December 7,1999; certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (m)(1) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To prevent fatigue cracking of the mainlanding gear (MLG) pistons, which couldresult in failure of the pistons andsubsequent damage to the airplane structureor injury to airplane occupants, accomplishthe following:

For Airplanes on Which Certain PistonsHave Not Been Modified: Inspections

(a) For airplanes on which any MLGpiston, part number (P/N) 5935347–1 through5935347–509 inclusive, has NOT beenmodified: Do the actions specified inparagraph (a)(1), (a)(2), or (a)(3) of this AD,as applicable, per the AccomplishmentInstructions of McDonnell Douglas ServiceBulletin MD80–32–277, Revision 04, datedDecember 7, 1999.

(1) For any MLG piston that hasaccumulated less than 5,000 total landingssince date of manufacture: Prior to theaccumulation of 5,000 total landings on theMLG piston, or within 12 months after theeffective date of this AD, whichever occurslater, do dye penetrant and magnetic particleinspections to detect cracks of the MLGpistons.

(2) For any MLG piston that hasaccumulated 5,000 or more total landingssince date of manufacture, but less than30,000 total landings since date ofmanufacture: Within 1,500 landings on theMLG piston or 12 months after the effectivedate of this AD, whichever occurs later, dodye penetrant and magnetic particleinspections to detect cracks of the MLGpistons.

(3) For any MLG piston that hasaccumulated 30,000 or more total landingssince date of manufacture: Within 2 years or5,000 landings on the MLG piston after theeffective date of this AD, whichever occursfirst, do the preventative modification(including inspections; corrective actions, ifnecessary; wet grind rework area; flap shotpeen rework area; and reidentify the MLG



pistons); except as required by paragraph (k)of this AD. Following accomplishment of thepreventative modification, do the actionsspecified in paragraph (e) at the timeindicated in that paragraph.

Note 2: Modification of the MLG piston perthe original version, and Revisions 01through 04 of McDonnell Douglas ServiceBulletin MD80–32–277, Service ReworkDrawing SR08320081, or any FAA-approvedpreventative modification to MLG pistonsbefore the effective date of this AD, isconsidered acceptable for compliance withthe preventative modification requirementsof paragraphs (a)(3), (b)(1)(iii), (b)(2), and(c)(1) of this AD.

For Airplanes on Which Certain PistonsHave Not Been Modified: Condition 1 (NoCrack)

(b) If no crack is found during anyinspection required by either paragraph (a)(1)or (a)(2) of this AD, do the actions specifiedin either paragraph (b)(1) or (b)(2) of this AD.

(1) Condition 1, Option 1. Do the actionsspecified in either paragraph (b)(1)(i) or(b)(1)(ii) of this AD, and in paragraph(b)(1)(iii) of this AD.

(i) Repeat the inspections required byeither paragraph (a)(1) or (a)(2) of this ADthereafter at intervals not to exceed 1,500landings until the permanent modificationrequired by paragraph (b)(1)(iii) of this ADhas been done.

(ii) Before further flight, do the flap shotpeening per McDonnell Douglas ServiceBulletin MD80–32–277, Revision 04, datedDecember 7, 1999. Repeat the inspectionsrequired by either paragraph (a)(1) or (a)(2) ofthis AD thereafter at intervals not to exceed2,500 landings until the permanentmodification required by paragraph (b)(1)(iii)of this AD has been done.

(iii) Prior to the accumulation of 30,000 ormore total landings on the MLG piston, dothe preventative modification (includinginspections; corrective actions, if necessary;wet grind rework area; flap shot peen reworkarea; and reidentify the MLG pistons), per theAccomplishment Instructions of McDonnellDouglas Service Bulletin MD80–32–277,Revision 04, dated December 7, 1999; exceptas required by paragraph (k) of this AD.Accomplishment of the permanentmodification stops the repetitive inspectionrequirements of paragraphs (b)(1)(i) and(b)(1)(ii) of this AD. Followingaccomplishment of the preventativemodification, do the actions specified inparagraph (e) at the time indicated in thatparagraph.

(2) Condition 1, Option 2. Before furtherflight, do the preventative modification(including inspections; corrective actions, ifnecessary; wet grind rework area; flap shotpeen rework area; and reidentify the MLGpistons) per Condition 1, Option 2, of theAccomplishment Instructions of McDonnellDouglas Service Bulletin MD80–32–277,Revision 04, dated December 7, 1999; exceptas required by paragraph (k) of this AD.Following accomplishment of thepreventative modification, do the actionsspecified in paragraph (e) at the timeindicated in that paragraph.

For Airplanes on Which Certain PistonsHave Not Been Modified: Condition 2 (AnyCrack Within Limits)

(c) If any crack is found during anyinspection required by either paragraph (a)(1)or (a)(2) of this AD, and that crack is withinthe limits specified in McDonnell DouglasService Bulletin MD80–32–277, Revision 04,dated December 7, 1999, before further flight,do the action(s) specified in either paragraph(c)(1) or (c)(2) of this AD.

(1) Do the preventative modification(including inspections; corrective actions, ifnecessary; wet grind rework area; flap shotpeen rework area; and reidentify the MLGpistons) per the AccomplishmentInstructions of the service bulletin; except asrequired by paragraph (k) of this AD.Following accomplishment of thepreventative modification, do the actionsspecified in paragraph (e) or (h) of this AD,as applicable, at the time indicated in thatparagraph.

(2) Replace the MLG piston with a new orserviceable MLG piston per the servicebulletin. Following accomplishment of thereplacement, do the actions specified inparagraph (a), (e), or (h) of this AD, asapplicable, at the time indicated in thatparagraph.

Note 3: Replacement of the MLG pistonwith a modified MLG per the originalversion, and Revisions 01 through 04 ofMcDonnell Douglas Service Bulletin MD80–32–277, Service Rework DrawingSR08320081, or any FAA-approvedpreventative modification to MLG pistonsbefore the effective date of this AD, isconsidered acceptable for compliance withthe replacement requirements of paragraphs(c)(2) and (d)(1) of this AD.

For Airplanes on Which Certain PistonsHave Not Been Modified: Condition 3 (AnyCrack Outside Limits)

(d) If any crack is found during anyinspection required by either paragraph (a)(1)or (a)(2) of this AD that is outside the limitsspecified in McDonnell Douglas ServiceBulletin MD80–32–277, Revision 04, datedDecember 7, 1999, before further flight, dothe action(s) specified in paragraph (d)(1) or(d)(2) of this AD.

(1) Condition 3, Option 1. Replace the MLGpiston with a new or serviceable MLG pistonper the service bulletin. Followingaccomplishment of the replacement, do theactions specified in paragraph (a), (e), or (h)of this AD, as applicable, at the timeindicated in that paragraph.

(2) Condition 3, Option 2. Repair per amethod approved by the Manager, LosAngeles Aircraft Certification Office (ACO),FAA.

For Airplanes on Which Certain PistonsHave Been Modified: Replacement orInspections and Corrective Actions, IfNecessary

(e) For airplanes on which any MLGpiston, part number (P/N) 5935347–1 through5935347–509 inclusive, has been modifiedand reidentified as P/N SR09320081–3through SR09320081–13 inclusive:

(1) For any MLG piston that hasaccumulated 30,000 or more landings since

accomplishment of the modification: Within6 months after the effective date of this AD,replace the MLG piston with a new orserviceable MLG piston per the servicebulletin. Following accomplishment of thereplacement, do the actions specified inparagraph (a), (e), or (h) of this AD, asapplicable, at the time indicated in thatparagraph.

(2) For any MLG piston that hasaccumulated less than 30,000 landings sinceaccomplishment of the modification: Do dyepenetrant and magnetic particle inspectionsto detect cracks of the MLG pistons, per theAccomplishment Instructions of McDonnellDouglas Service Bulletin MD80–32–277,Revision 04, dated December 7, 1999; at theapplicable time(s) specified in paragraph(e)(2)(i) or (e)(2)(ii) of this AD.

(i) For any MLG piston that has beenmodified per paragraph (a)(3), (b)(1)(iii),(b)(2), or (c)(1) of this AD, or that has beenreplaced with a modified MLG piston perparagraph (c)(2) or (d)(1) of this AD: Inspectwithin 2,500 landings followingaccomplishment of the modification orreplacement with a modified MLG piston.

(ii) For any MLG piston that has beenmodified per service information other thanRevision 04 of McDonnell Douglas ServiceBulletin MD80–32–277 and not inspected perRevision 04 of the service bulletin prior tothe effective date of this AD: Inspect within1,500 landings or 12 months after theeffective date of this AD, whichever occurslater.

(f) If no crack is found during anyinspection required by paragraph (e)(2) ofthis AD, repeat the dye penetrant andmagnetic particle inspections required byparagraph (e)(2) of this AD thereafter atintervals not to exceed 2,500 landings.Within 30,000 landings since modification ofthe MLG piston, replace the MLG piston witha new or serviceable MLG piston per theAccomplishment Instructions of McDonnellDouglas Service Bulletin MD80–32–277,Revision 04, dated December 7, 1999.Following accomplishment of thereplacement, do the actions specified inparagraph (a), (e), or (h) of this AD, asapplicable, at the time indicated in thatparagraph.

(g) If any crack is found during anyinspection required by paragraph (e)(2) ofthis AD, before further flight, do the action(s)specified in either paragraph (d)(1) or (d)(2)of this AD.

For Airplanes on Which A Certain PistonHas Been Installed:

(h) For airplanes on which any MLGpiston, P/N 5935347–511, has been installed:Do the actions specified in paragraph (h)(1),(h)(2), or (h)(3) of this AD, as applicable, perthe Accomplishment Instructions ofMcDonnell Douglas Service Bulletin MD80–32–277, Revision 04, dated December 7,1999.

(1) For any MLG piston that hasaccumulated less than 5,000 total landingssince date of manufacture: Prior to theaccumulation of 5,000 total landings on theMLG piston, or within 12 months after theeffective date of this AD, whichever occurslater, do dye penetrant and magnetic particle



inspections to detect cracks of the MLGpistons.

(2) For any MLG piston that hasaccumulated 5,000 or more total landingssince date of manufacture, but less than30,000 total landings since date ofmanufacture: Within 1,500 landings on theMLG piston or 12 months after the effectivedate of this AD, whichever occurs later, dodye penetrant and magnetic particleinspections to detect cracks of the MLGpistons.

(3) For any MLG piston that hasaccumulated 30,000 or more total landingssince date of manufacture: Within 6 monthsafter the effective date of this AD, replace theMLG piston with a new or serviceable MLGpiston per the service bulletin. Followingaccomplishment of the replacement, do theactions specified in paragraph (a), (e), or (h)of this AD, as applicable, at the timeindicated in that paragraph.

(i) If no crack is found during anyinspection required by either paragraph (h)(1)or (h)(2) of this AD, repeat the dye penetrantand magnetic particle inspections requiredby either paragraph (h)(1) or (h)(2) of this ADthereafter at intervals not to exceed 2,500landings. Prior to the accumulation of 30,000or more total landings on the MLG piston, dothe actions specified in paragraph (d)(1) ofthis AD.

(j) If any crack is found during anyinspection required by either paragraph (h)(1)or (h)(2) of this AD, before further flight, dothe action(s) specified in either paragraph(d)(1) or (d)(2) of this AD.

Exception to Actions Referenced in ServiceBulletin

(k) If any discrepancy is found during anyinspection while accomplishing thepreventative modification required by thisAD, prior to further flight, do applicablecorrective action(s) per McDonnell DouglasService Bulletin MD80–32–277, Revision 04,dated December 7, 1999. If the servicebulletin specifies to contact the manufacturerfor appropriate action: Prior to further flight,repair in accordance with a method approvedby the Manager, Los Angeles ACO. For arepair method to be approved by theManager, Los Angeles ACO, as required bythis paragraph, the Manager’s approval lettermust specifically reference this AD.

Optional Terminating Action

(l) Replacement of any MLG piston with anew MLG piston, P/N 5935347–517, perMcDonnell Douglas Service Bulletin MD80–32–309, dated January 31, 2000, constitutesterminating action for the requirements ofthis AD for that MLG piston.

Alternative Methods of Compliance

(m)(1) An alternative method ofcompliance or adjustment of the compliancetime that provides an acceptable level ofsafety may be used if approved by theManager, Los Angeles ACO. Operators shallsubmit their requests through an appropriateFAA Principal Maintenance Inspector, whomay add comments and then send it to theManager, Los Angeles ACO.

Note 4: Information concerning theexistence of approved alternative methods of

compliance with this AD, if any, may beobtained from the Los Angeles ACO.

(2) Alternative methods of compliance,approved previously in accordance with AD96–19–09, amendment 39–9756, areapproved as alternative methods ofcompliance with this AD.


(n) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.


(o) Except as provided by paragraphs(d)(2), (k), and (l) of this AD, the actions shallbe done in accordance with McDonnellDouglas Service Bulletin MD80–32–277,Revision 04, dated December 7, 1999. Thisincorporation by reference was approved bythe Director of the Federal Register inaccordance with 5 U.S.C. 552(a) and 1 CFRpart 51. Copies may be obtained from BoeingCommercial Aircraft Group, Long BeachDivision, 3855 Lakewood Boulevard, LongBeach, California 90846, Attention: Data andService Management, Dept. C1–L5A (D800–0024). Copies may be inspected at the FAA,Transport Airplane Directorate, 1601 LindAvenue, SW., Renton, Washington; or at theFAA, Los Angeles Aircraft CertificationOffice, 3960 Paramount Boulevard,Lakewood, California; or at the Office of theFederal Register, 800 North Capitol Street,NW., suite 700, Washington, DC.

Effective Date

(p) This amendment becomes effective onJune 14, 2001.

Issued in Renton, Washington, on May 3,2001.Lirio Liu Nelson,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 01–11674 Filed 5–9–01; 8:45 am]BILLING CODE 4910–13–P


Federal Highway Administration

23 CFR Part 630

[FHWA Docket No. 2000–7426]

RIN 2125–AE77

Federal-Aid Project Agreement

AGENCY: Federal HighwayAdministration (FHWA), DOT.ACTION: Final rule.

SUMMARY: The FHWA is amending itsregulation on project agreements.Section 1305 of the TransportationEquity Act for the 21st Century (TEA–21) amended 23 U.S.C. 106(a) andcombined authorization of work andexecution of the project agreement for a

Federal-aid project into a single action.Changes to the agreement provisionsreflect these adjustments. Additionally,section 1304 of the TEA–21 amended 23U.S.C. 102(b) to include a provision toallow the granting of time extensions forengineering cost reimbursement.Changes to the agreement proceduresare added to provide this newflexibility.

DATES: This final rule is effective June11, 2001.FOR FURTHER INFORMATION CONTACT: Mr.Jack Wasley, Office of ProgramAdministration (HIPA), 202–366–4658,or Harold Aikens, Office of the ChiefCounsel, 202–366–0791, FederalHighway Administration, 400 SeventhStreet, SW., Washington, DC 20590–0001. Office hours are from 7:45 a.m. to4:15 p.m., e.t., Monday through Fridayexcept Federal holidays.SUPPLEMENTARY INFORMATION: Theamendments in this final rule are basedprimarily on the notice of proposedrulemaking (NPRM) published onAugust 31, 2000, at 65 FR 52962 (FHWADocket No. 2000–7426). All commentsreceived in response to this NPRM havebeen considered in adopting theseamendments.

Electronic AccessInternet users may access all

comments received by the U.S. DOTDockets, Room PL–401 by using theuniversal resource locator (URL): http://dms.dot.gov. It is available 24 hourseach day, 365 days each year. Electronicsubmission and retrieval help andguidelines are available under the helpsection of the web site.

An electronic copy of this documentmay be downloaded by using acomputer, modem and suitablecommunications software from theGovernment Printing Office’s ElectronicBulletin Board Service at (202) 512–1661. Internet users may reach theOffice of the Federal Register’s homepage at: http://www.nara.gov/fedreg andthe Government Printing Office’sdatabase at: http://www.access.gpo.gov.

BackgroundUnder the provisions of 23 U.S.C. 106,

a formal agreement between the Statetransportation department (STD) andthe FHWA is required for Federal-aidhighway projects. This agreement,referred to as the ‘‘project agreement,’’ isin essence a written contract betweenthe State and the Federal Governmentdefining the extent of the work to beundertaken, the State and the Federalshares of a project’s cost, andcommitments concerning maintenanceof the project.



The present regulation at 23 CFR 630,subpart C, provides requirementsconcerning the project agreement. Itincludes detailed instructions onpreparation of the project agreement,and an assemblage of agreementprovisions that are part of the projectagreement.

The present regulation at 23 CFR 630,subpart A, provides requirementsconcerning the project authorization.The FHWA project authorizationcommits the Federal Government toparticipate in the funding of a project,except in those instances where theState requests FHWA authorizationwithout the commitment of Federalfunds. In addition, FHWA authorizationalso establishes a point in time afterwhich costs incurred on a project areeligible for Federal participation.

Requirements covering projectagreements are contained in this finalrule. This final rule updates andmodifies the existing regulation toincorporate needed changes made bysections 1304 and 1305 of the TEA–21,Public Law 105–178, 112 Stat.107, itcombines the project agreement and theproject authorization of work. The finalrule amends these regulations in themanner and for the reasons indicatedbelow.

Discussion of CommentsThe FHWA published a notice of

proposed rulemaking (NPRM)concerning proposed revisions to Part630 on August 31, 2000, at 65 FR 52962.Interested persons were invited toparticipate in the development of thisfinal rule by submitting writtencomments to the FHWA. Only one Statetransportation agency submittedcomments. The State agency providedtwo comments on proposed § 630.106(f),and four comments concerningclarification of the NPRM’s section-by-section analysis of § 630.106(f).

Section 630.106(f)(2) discusses themanner for establishing the Federalshare of eligible project costs. Thecomment was: Could an agreement witha lump sum Federal share be changed toa pro rata Federal share? Yes, when theFederal share in the project agreement ischanged, the manner in which theFederal share is established can also bechanged. The Federal share establishedas either lump sum or pro rata in theproject agreement at the time ofauthorization does not have to be thesame, but the Federal share can only beadjusted to reflect the actual bid amountreceived. The final rule is not changedas a result of this comment.

Concerning the section-by-sectionanalysis for § 630.106(f), the commenterrequested explanation of the following:

(1) whether the Federal share agreed towould continue through the life of theproject; and (2) whether manipulation ofthe funding levels of individual projectsto accommodate program fundingchanges or needs would not be allowed.The FHWA believes that once a projectis under agreement the amount ofFederal funds and appropriation typecannot be changed except to reflect achange in the bids received or any oneof the four general categories forexceptions contained in § 630.106(c)(1)through (c)(4).

A follow up comment stated that theagency would not support anyregulation that would require additionalfunds to cover project cost overruns.Establishing the contractual obligationof the Federal Government for thepayment of the Federal share of the costof the project is a legislativerequirement of 23 U.S.C. 106(a)(3). TheFederal Government cannot commitfuture funds that might not be available.Funds must be available at the time theproject agreement is executed. The Stateis still required to prepare amodification to a project agreement aschanges occur. In the same paragraph, itwas suggested that the term‘‘significantly’’ be removed from theanalysis section to avoid any vagueness.The term ‘‘significant’’ rather than‘‘substantive’’ is used in the discussionto account for different interpretationsof what is substantial. The word‘‘significantly’’ might suggestconsiderable in amount, which mightnot recognize that flexibility may beapplied for project implementation. Therule does not attempt to apply hard andfast rules or percentages as project needsand circumstances vary. Current§ 630.106(f)(2), that allows a change inthe project agreement to reflect theactual bid received, uses the term‘‘substantive’’ when compared to theSTD’s estimated cost to trigger anadjustment to the Federal share. Thecost difference should have realmeaning when compared to the totalcost before an adjustment is made to theFederal share. For example, a thousanddollar cost difference, when comparedto a million dollar estimate doesn’t havemuch meaning. Therefore, substantialmay be viewed differently among local,regional, and State projects.

The State agency asked if the mannerestablished for the Federal-aid share ofeligible project costs under proposed§ 630.106(f)(1) could be changed at thetime an adjustment is made to reflectthe actual bids received. The longstanding regulatory provision, retainedin § 630.106(f)(2), that allows a one timechange in the project agreement toreflect the actual bid received, also

permits the manner established for theFederal-aid share to be changed.Adjustments to the Federal share, or themanner in which established under§ 630.106(f)(1) will only be permitted forprojects in situations where bid pricesare significantly different from theestimates at the time of FHWAauthorization. A change in the Federalcommitment from the agreed to amountof Federal funds obligated from aspecific Federal appropriation type orcategory of funds, to take advantage ofnew appropriations or to switchappropriations of individual projects toaccommodate program funding changesor needs, is not allowed except forauthorization to proceed under§ 630.106(c). The four general categoriesfor exceptions to this rule contained in§ 630.106(c)(1) through (4) allow achange to any category of funds eligibleat the time funds are available forconversion to a contractual obligation ofthe Federal government under 23 U.S.C.106.

The State agency proposed changingthe wording in § 630.106(f)(2) from‘‘shortly after’’ to ‘‘based on.’’ The Stateagency felt that the term ‘‘shortly’’ wastoo vague. It is our intent to make anyfunding changes, made as a result ofactual bids, as soon as it is practicalafter the bids are received within thesame Federal fiscal year. Our intent isnot to have Federal commitmentsoutstanding. Funding changes in theamount of Federal funds committed asa result of actual bids received shouldbe as soon as practicable within thesame Federal fiscal year that the bids arereceived. For these reasons, we are notchanging the wording in § 630.106(f)(2).

Executive Order 12866 (RegulatoryPlanning and Review) and DOTRegulatory Policies and Procedures

The FHWA has determined that thisaction is not a significant regulatoryaction within the meaning of ExecutiveOrder 12866 or significant within themeaning of U. S. Department ofTransportation regulatory policies andprocedures. The final rule updates theFederal-aid project agreement regulationto conform to recent laws, regulations,or guidance and clarifies existingpolicies. The economic impact of thisrulemaking will be minimal; therefore, afull regulatory evaluation is notrequired.

Regulatory Flexibility ActIn compliance with the Regulatory

Flexibility Act (5 U.S.C. 601–612), theFHWA has evaluated the effects of thisrule on small entities. Based on theevaluation, the FHWA certifies that thisaction will not have a significant



economic impact on a substantialnumber of small entities. This ruleclarifies and simplifies procedures usedby State highway agencies inaccordance with existing laws,regulations, or guidance.

Unfunded Mandates Reform Act of1995

This rule would not impose a Federalmandate resulting in the expenditure byState, local, and tribal governments, inthe aggregate, or by the private sector, of$100 million or more in any one year (2U.S.C. 1531 et seq.).

Executive Order 12988 (Civil JusticeReform)

This action meets applicablestandards in sections 3(a) and 3(b)(2) ofExecutive Order 12988, Civil JusticeReform, to minimize litigation,eliminate ambiguity, and reduceburden.

Executive Order 13045 (Protection ofChildren)

We have analyzed this action underExecutive Order 13045, Protection ofChildren from Environmental HealthRisks and Safety Risks. This rule is noteconomically significant and does notconcern an environmental risk to healthor safety that may disproportionatelyaffect children.

Executive Order 12630 (Taking ofPrivate Property)

This rule would not effect a taking ofprivate property or otherwise havetaking implications under ExecutiveOrder 12630, Governmental Actions andInterference with ConstitutionallyProtected Property Rights.

Executive Order 13132 (Federalism)

This action has been analyzed inaccordance with the principles andcriteria contained in Executive Order13132, dated August 4, 1999, and it hasbeen determined that it does not have asubstantial direct affect or significantfederalism implications on States orlocal governments that would limit thepolicymaking discretion of the States.Nothing in this document directlypreempts any State law or regulation.

Executive Order 13175 (TribalConsultation)

The FHWA has analyzed thisproposal under Executive Order 13175,dated November 6, 2000, and believesthat the final rule will not havesubstantial direct effects on one or moreIndian tribes; will not imposesubstantial direct compliance costs onIndian tribal governments; and will notpreempt tribal law. A formal project

agreement between the FHWA and aState is required for all Federal-aidprojects. The project agreement processunder this final rule has not changed forIndian tribal governments. Federal-aidfunds for projects involving Indiantribal governments will continueindirectly through the State.Authorization, project agreement, andobligation of funds are by statute acombined action. To avoid confusionand misinterpretations, the finalregulation (23 CFR 630) is being revisedto reflect current procedures. Therefore,a tribal summary impact statement isnot required.

Executive Order 12372(Intergovernmental Review)

Catalog of Federal DomesticAssistance Program Number 20.205,Highway Planning and Construction.The regulations implementing ExecutiveOrder 12372 regardingintergovernmental consultation onFederal programs and activities apply tothis program.

Paperwork Reduction Act of 1995Under the Paperwork Reduction Act

of 1995 (PRA) (44 U.S.C. 3501, et seq.),Federal agencies must obtain approvalfrom the Office of Management andBudget (OMB) for each collection ofinformation they conduct, sponsor, orrequire through regulations. The FHWAhas reviewed this rule and determinedthat the information collectionrequirements associated with thisrulemaking are covered by a currentlyapproved information collection, OMBApproval No. 2125–0529, entitled,‘‘Preparation and Execution of theProject Agreement and Modifications,’’which is due to expire on May 31, 2001.There are no changes to the currentinformation collection burden estimatesas a result of this final rule. Interestedpersons were invited to providecomments regarding this informationcollection as a part of the developmentof this final rule by submitting writtencomments on the NPRM. No commentswere received regarding theseinformation collection requirements.This final rule updates and modifies theexisting requirements to reflect statutorychanges to the project agreementprocess enacted by section 1305 of theTransportation Equity Act for the 21stCentury (TEA–21, Pub. L. 105–178)amended 23 U.S.C. 106(a) andcombined authorization of work andexecution of the project agreement for aFederal-aid project into a single action.

National Environmental Policy ActThe agency has analyzed this action

for the purpose of the National

Environmental Policy Act of 1969 (42U.S.C. 4321 et seq.) and has determinedthat this action would not have anyeffect on the quality of the environment.

Regulation Identification Number

A regulation identification number(RIN) is assigned to each regulatoryaction listed in the Unified Agenda ofFederal Regulations. The RegulatoryInformation Service Center publishesthe Unified Agenda in April andOctober of each year. The RIN containedin the heading of this document can beused to cross reference this action withthe Unified Agenda.


Government contracts, Grantprograms—Transportation, Highwaysand roads, Project agreementprocedures.

Issued on: May 3, 2001.Vincent F. Schimmoller,Deputy Executive Director, Federal HighwayAdministration.

In consideration of the foregoing, theFHWA amends title 23, chapter I, Codeof Federal Regulations, by amendingpart 630, as set forth below.

PART 630—PRECONSTRUCTIONPROCEDURES

1. Revise the authority citation forpart 630 to read as follows:

Authority: 23 U.S.C. 106, 109, 115, 315,320, and 402(a); 23 CFR 1.32; and 49 CFR1.48(b).

2. Revise subpart A of part 630 to readas follows:

Subpart A—Project Authorization andAgreements

Sec.630.102 Purpose.630.104 Applicability.630.106 Authorization to proceed.630.108 Preparation of agreement.630.110 Modification of original agreement.630.112 Agreement provisions.

§ 630.102 Purpose.

The purpose of this subpart is toprescribe policies for authorizingFederal-aid projects through executionof the project agreement required by 23U.S.C. 106(a)(2).

§ 630.104 Applicability.

(a) This subpart is applicable to allFederal-aid projects unless specificallyexempted.

(b) Other projects which involvespecial procedures are to be approved,or authorized as set out in theimplementing instructions orregulations for those projects.



§ 630.106 Authorization to proceed.(a)(1) The State transportation

department (STD) must obtain anauthorization to proceed from theFHWA before beginning work on anyFederal-aid project. The STD mayrequest an authorization to proceed inwriting or by electronic mail for aproject or a group of projects.

(2) The FHWA will issue theauthorization to proceed either throughor after the execution of a formal projectagreement with the State. Theagreement can be executed only afterapplicable prerequisite requirements ofFederal laws and implementingregulations and directives are satisfied.Except as provided in paragraphs (c)(1)through (c)(4) of this section, the FHWAwill obligate Federal funds in theproject or group of projects uponexecution of the project agreement.

(b) Federal funds shall not participatein costs incurred prior to the date of aproject agreement except as provided by23 CFR 1.9(b).

(c) The execution of the projectagreement shall be deemed a contractualobligation of the Federal governmentunder 23 U.S.C. 106 and shall requirethat appropriate funds be available atthe time of authorization for the agreedFederal share, either pro rata or lumpsum, of the cost of eligible work to beincurred by the State except as follows:

(1) Advance construction projectsauthorized under 23 U.S.C. 115.

(2) Projects for preliminary studies forthe portion of the preliminaryengineering and right-of-way (ROW)phase(s) through the selection of alocation.

(3) Projects for ROW acquisition inhardship and protective buyingsituations through the selection of aparticular location. This includes ROWacquisition within a potential highwaycorridor under consideration wherenecessary to preserve the corridor forfuture highway purposes. Authorizationof work under this paragraph shall be inaccord with the provisions of 23 CFRpart 710.

(4) In special cases where the FederalHighway Administrator determines it tobe in the best interest of the Federal-aidhighway program.

(d) For projects authorized to proceedunder paragraphs (c)(1) through (c)(4) ofthis section, the executed projectagreement shall contain the followingstatement: ‘‘Authorization to proceed isnot a commitment or obligation toprovide Federal funds for that portion ofthe undertaking not fully fundedherein.’’

(e) For projects authorized underparagraphs (c)(2) and (c)(3) of thissection, subsequent authorizations

beyond the location stage shall not begiven until appropriate available fundshave been obligated to cover eligiblecosts of the work covered by theprevious authorization.

(f)(1) The Federal-aid share of eligibleproject costs shall be established at thetime the project agreement is executedin one of the following manners:

(i) Pro rata, with the agreement statingthe Federal share as a specifiedpercentage; or

(ii) Lump sum, with the agreementstating that Federal funds are limited toa specified dollar amount not to exceedthe legal pro rata.

(2) The pro-rata or lump sum sharemay be adjusted before or shortly aftercontract award to reflect any substantivechange in the bids received as comparedto the STD’s estimated cost of theproject at the time of FHWAauthorization, provided that Federalfunds are available.

(3) Federal participation is limited tothe agreed Federal share of eligible costsactually incurred by the State, not toexceed the maximum permitted byenabling legislation.

(g) The State may contribute morethan the normal non-Federal share oftitle 23, U.S.C. projects. In general,financing proposals that result in onlyminimal amounts of Federal funds inprojects should be avoided unless theyare based on sound project managementdecisions.

(h)(1) Donations of cash, land,material or services may be credited tothe State’s non-Federal share of theparticipating project work in accordancewith title 23, U.S.C., and implementingregulations.

(2) Contributions may not exceed thetotal costs incurred by the State on theproject. Cash contributions from allsources plus the Federal funds may notexceed the total cost of the project.

§ 630.108 Preparation of agreement.

(a) The STD shall prepare a projectagreement for each Federal-aid project.

(b) The STD may develop the projectagreement in a format acceptable to boththe STD and the FHWA provided thefollowing are included:

(1) A description of each projectlocation including State and projecttermini;

(2) The Federal-aid project number;(3) The work covered by the

agreement;(4) The total project cost and amount

of Federal funds under agreement;(5) The Federal-aid share of eligible

project costs expressed as either a prorata percentage or a lump sum as setforth in § 630.106(f)(1);

(6) A statement that the State acceptsand will comply with the agreementprovisions set forth in § 630.112;

(7) A statement that the Statestipulates that its signature on theproject agreement constitutes themaking of the certifications set for in§ 630.112; and

(8) Signatures of officials from boththe State and the FHWA, and the dateexecuted.

(c) The project agreement should alsodocument, by comment, instanceswhere:

(1) The State is applying amounts ofcredits from special accounts (such asthe 23 U.S.C. 120(j) toll credits, 23U.S.C. 144(n) off-system bridge creditsand 23 U.S.C. 323 land value credits) tocover all or a portion of the normalpercent non-Federal share of the project;

(2) The project involves otherarrangements affecting Federal fundingor non-Federal matching provisions,including tapered match, donations, oruse of other Federal agency funds, ifknown at the time the project agreementis executed; and

(3) The State is claiming financerelated costs for bond and other debtinstrument financing (such as paymentsto States under 23 U.S.C. 122).

(d) The STD may use an electronicversion of the agreement as provided bythe FHWA.

(Approved by the Office ofManagement and Budget under controlnumber 2125–0529)

§ 630.110 Modification of originalagreement.

(a) When changes are needed to theoriginal project agreement, amodification of agreement shall beprepared. Agreements should not bemodified to replace one Federal fundcategory with another unlessspecifically authorized by statute.

(b) The STD may develop themodification of project agreement in aformat acceptable to both the STD andthe FHWA provided the following areincluded:

(1) The Federal-aid project numberand State;

(2) A sequential number identifyingthe modification;

(3) A reference to the date of theoriginal project agreement to bemodified;

(4) The original total project cost andthe original amount of Federal fundsunder agreement;

(5) The revised total project cost andthe revised amount of Federal fundsunder agreement;

(6) The reason for the modifications;and,



(7) Signatures of officials from boththe State and the FHWA and dateexecuted.

(c) The STD may use an electronicversion of the modification of projectagreement as provided by the FHWA.

§ 630.112 Agreement provisions.(a) The State, through its

transportation department, accepts andagrees to comply with the applicableterms and conditions set forth in title23, U.S.C., the regulations issuedpursuant thereto, the policies andprocedures promulgated by the FHWArelative to the designated projectcovered by the agreement, and all otherapplicable Federal laws and regulations.

(b) Federal funds obligated for theproject must not exceed the amountagreed to on the project agreement, thebalance of the estimated total cost beingan obligation of the State. Suchobligation of Federal funds extends onlyto project costs incurred by the Stateafter the execution of a formal projectagreement with the FHWA.

(c) The State must stipulate that as acondition to payment of the Federalfunds obligated, it accepts and willcomply with the following applicableprovisions:

(1) Project for acquisition of rights-of-way. In the event that actualconstruction of a road on this right-of-way is not undertaken by the close ofthe twentieth fiscal year following thefiscal year in which the project isauthorized, the STD will repay to theFHWA the sum or sums of Federalfunds paid to the transportationdepartment under the terms of theagreement. The State may request a timeextension beyond the 20-year limit withno repayment of Federal funds, and theFHWA may approve this request if it isconsidered reasonable.

(2) Preliminary engineering project. Inthe event that right-of-way acquisitionfor, or actual construction of, the roadfor which this preliminary engineeringis undertaken is not started by the closeof the tenth fiscal year following thefiscal year in which the project isauthorized, the STD will repay to theFHWA the sum or sums of Federalfunds paid to the transportationdepartment under the terms of theagreement. The State may request a timeextension for any preliminaryengineering project beyond the 10-yearlimit with no repayment of Federalfunds, and the FHWA may approve thisrequest if it is considered reasonable.

(3) Drug-free workplace certification.By signing the project agreement, theSTD agrees to provide a drug-freeworkplace as required by 49 CFR part29, subpart F. In signing the project

agreement, the State is providing thecertification required in appendix C to49 CFR part 29, unless the Stateprovides an annual certification.

(4) Suspension and debarmentcertification. By signing the projectagreement, the STD agrees to fulfill theresponsibility imposed by 49 CFR29.510 regarding debarment,suspension, and other responsibilitymatters. In signing the projectagreement, the State is providing thecertification for its principals requiredin appendix A to 49 CFR part 29.

(5) Lobbying certification. By signingthe project agreement, the STD agrees toabide by the lobbying restrictions setforth in 49 CFR part 20. In signing theproject agreement, the State is providingthe certification required in appendix Ato 49 CFR part 20.

Subpart C—[Removed and Reserved]

3. In part 630, remove and reservesubpart C.

[FR Doc. 01–11810 Filed 5–9–01; 8:45 am]



Coast Guard

33 CFR Part 100

[CGD 13–01–008]

RIN 2115–AE46

Date Change for Special LocalRegulation (SLR), Seattle NationalMaritime Week Tugboat Race

AGENCY: Coast Guard, DOT.

ACTION: Notice of change inimplementation.

SUMMARY: The Coast Guard announces achange to the effective date for theSeattle National Maritime Week TugboatRace Special Local Regulation (SLR) asper 33 CFR 100.1306(c). This year’sevent will be held on Saturday, May12th, 2001, necessitating this effectivedate change.

DATES: 33 CFR 100.1306 is effective May12, 2001, from 12 p.m. to 4:30 p.m.

Dated: May 3, 2001.

M.D. Dawe,Commander, U.S. Coast Guard, Commander,Group Seattle.[FR Doc. 01–11847 Filed 5–9–01; 8:45 am]


ENVIRONMENTAL PROTECTIONAGENCY

40 CFR Part 52

[Region 2 Docket No. NY47–218,FRL–6940–1]

Approval and Promulgation ofImplementation Plans; New York 15and 9 Percent Rate of Progress Plans,Phase I Ozone Implementation Plan

AGENCY: Environmental ProtectionAgency.ACTION: Final rule.

SUMMARY: The Environmental ProtectionAgency (EPA) is approving a StateImplementation Plan revision submittedby New York which is intended to meetseveral Clean Air Act requirements.Specifically, EPA is approving the 1990base year ozone emission inventory (forall ozone nonattainment areas in NewYork); the 1996 and 1999 ozoneprojection emission inventories; thedemonstration that emissions fromgrowth in vehicle miles traveled willnot increase total motor vehicleemissions and, therefore, offsettingmeasures are not necessary; thephotochemical assessment monitoringstations network; and enforceablecommitments. EPA is also approvingNew York’s 15 Percent Rate of ProgressPlan and the 9 Percent ReasonableFurther Progress Plan. The intendedeffect of this action is to approveprograms required by the Clean Air Actwhich will result in emission reductionsthat will help achieve attainment of theone-hour national ambient air qualitystandard for ozone.EFFECTIVE DATE: This rule will beeffective June 11, 2001.ADDRESSES: Copies of the State’ssubmittals are available at the followingaddresses for inspection during normalbusiness hours:Environmental Protection Agency,

Region 2 Office, Air Programs Branch,290 Broadway, 25th Floor, New York,NY 10007–1866.

New York State Department ofEnvironmental Conservation, Divisionof Air Resources, 50 Wolf Road,Albany, New York 12233.

Environmental Protection Agency, Airand Radiation Docket and InformationCenter, Air Docket (6102), 401 MStreet, SW., Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: KirkJ. Wieber, Air Programs Branch,Environmental Protection Agency, 290Broadway, 25th Floor, New York, NY10007–1866, (212) 637–3381.SUPPLEMENTARY INFORMATION:



I. BackgroundOn November 3, 1999 (64 FR 59706),

EPA proposed approval of New York’sState Implementation Plan (SIP)submittal of November 15, 1993,September 4, 1997, and February 2,1999. These SIP submittals address therequirements for the one severe ozonenonattainment area in New York, theNew York-Northern New Jersey-LongIsland Nonattainment Area. The NewYork portion of the New York-NorthernNew Jersey-Long Island Area iscomposed of New York City and thecounties of Nassau, Suffolk,Westchester, Rockland, and seven townsin Orange County—Blooming Grove,Chester, Highlands, Monroe, Tuxedo,Warwick and Woodbury. The primaryfocus of this Federal Register action isthe New York portion of the New York-Northern New Jersey-Long Island Area(referred to as the New York MetroArea).

The following Clean Air Act (CAA)requirements were included in theNovember 3, 1999 proposal: the 1990base year emission inventory as revisedon February 2, 1999 (Volatile organiccompounds (VOC), Nitrogen oxides(NOX) and Carbon monoxide (CO) forareas designated nonattainment forozone since 1991 in New York); the1996 and 1999 ozone projectionemission inventories; 15 Percent Rate-Of-Progress (ROP) and 9 PercentReasonable Further Progress (RFP)Plans; contingency measures (EPA willbe acting on the contingency measuresin a separate Federal Register notice);demonstration that emissions fromgrowth in vehicle miles traveled willnot increase motor vehicle emissionsand, therefore, offsetting measures arenot necessary; preliminary modelingefforts completed before the submittal ofthe 1-hour ozone attainmentdemonstration; enforceablecommitments for Phase II of the 1-hourozone SIP development and approvalprocess as defined in EPA’s November3, 1999 proposed approval;photochemical assessment monitoringstations network; and transportationconformity budgets for 1996 and 1999.EPA is approving these transportationconformity budgets since they weresubmitted as SIP revisions. However, itshould be noted that these budgets areno longer used in conformitydeterminations because New York hassince submitted budgets for 2002, 2005,and 2007. On June 9, 2000 (65 FR36690), EPA found these budgets to beadequate for conformity purposes.

EPA has determined that New Yorkhas satisfied EPA’s Phase I requirementfor the clean fuel fleet program and

Ozone Transport Commission NOX

Memoranda of Understanding.A detailed discussion of the SIP

revisions and EPA’s rationale forapproving them is contained in theNovember 3, 1999 proposal and will notbe restated here. The reader is referredto the proposal for more details.

II. Public CommentsNo comments were received in

response to EPA’s proposed action onthis New York SIP revision.

III. Enhanced Inspection andMaintenance (I/M) Program

In EPA’s November 3, 1999 proposal,EPA proposed to approve emissioncredits for the 15 Percent ROP and 9Percent RFP Plans, pending EPA’sverification of New York’s enhancedmotor vehicle inspection andmaintenance (I/M) program’seffectiveness.

On May 24, 1999 New York submittedto EPA an enhanced I/M programevaluation report/program effectivenessdemonstration. Following EPA’sevaluation of the enhanced I/M programeffectiveness demonstration, the Agencyhas determined that New York’senhanced I/M program will provideadequate emission reductions comparedto the emission reductions credited inthe 15 Percent ROP and 9 Percent RFPPlans. On May 7, 2001 at (66 FR 22922)EPA approved New York’s enhanced I/M program effectiveness demonstration.Accordingly, the emission reductioncredits associated with New York’senhanced I/M program have been takeninto consideration in today’s approval ofNew York’s 15 Percent ROP and 9Percent RFP Plans.

IV. ConclusionEPA has evaluated New York’s

submittals for consistency with the CAAand Agency regulations and policy. EPAis approving New York’s: 1990 base yearemission inventory as revised onFebruary 2, 1999 (VOC, NOX and CO forareas designated nonattainment forozone since 1991 in New York); 1996and 1999 ozone projection emissioninventories; photochemical assessmentmonitoring station network;demonstration that emissions fromgrowth in vehicle miles traveled willnot increase total motor vehicleemissions; preliminary modeling effortscompleted before the submittal of the 1-hour ozone attainment demonstration;transportation conformity budgets for1996 and 1999; and enforceablecommitments for Phase II of the 1-hourozone SIP development and approvalprocess. EPA is also approving the 15Percent ROP and 9 Percent RFP Plans.

V. Administrative RequirementsUnder Executive Order 12866 (58 FR

51735, October 4, 1993), this final actionis not a ‘‘significant regulatory action’’and therefore is not subject to review bythe Office of Management and Budget.This final action merely approves statelaw as meeting federal requirements andimposes no additional requirementsbeyond those imposed by state law.Accordingly, the Administrator certifiesthat this final rule will not have asignificant economic impact on asubstantial number of small entitiesunder the Regulatory Flexibility Act (5U.S.C. 601 et seq.). Because this ruleproposes to approve pre-existingrequirements under state law and doesnot impose any additional enforceableduty beyond that required by state law,it does not contain any unfundedmandate or significantly or uniquelyaffect small governments, as describedin the Unfunded Mandates Reform Actof 1995 (Public Law 104–4). For thesame reason, this final rule also does notsignificantly or uniquely affect thecommunities of tribal governments, asspecified by Executive Order 13084 (63FR 27655, May 10, 1998). This final rulewill not have substantial direct effectson the states, on the relationshipbetween the national government andthe states, or on the distribution ofpower and responsibilities among thevarious levels of government, asspecified in Executive Order 13132 (64FR 43255, August 10, 1999), because itmerely approves a state ruleimplementing a federal standard, anddoes not alter the relationship or thedistribution of power andresponsibilities established in the CAA.This final rule also is not subject toExecutive Order 13045 (62 FR 19885,April 23, 1997), because it is noteconomically significant.

In reviewing SIP submissions, EPA’srole is to approve state choices,provided that they meet the criteria ofthe CAA. In this context, in the absenceof a prior existing requirement for thestate to use voluntary consensusstandards (VCS), EPA has no authorityto disapprove a SIP submission forfailure to use VCS. It would thus beinconsistent with applicable law forEPA, when it reviews a SIP submission,to use VCS in place of a SIP submissionthat otherwise satisfies the provisions ofthe CAA. Thus, the requirements ofsection 12(d) of the NationalTechnology Transfer and AdvancementAct of 1995 (15 U.S.C. 272 note) do notapply. As required by section 3 ofExecutive Order 12988 (61 FR 4729,February 7, 1996), in issuing this finalrule, EPA has taken the necessary steps



to eliminate drafting errors andambiguity, minimize potential litigation,and provide a clear legal standard foraffected conduct. EPA has compliedwith Executive Order 12630 (53 FR8859, March 15, 1988) by examining thetakings implications of the rule inaccordance with the ‘‘AttorneyGeneral’s Supplemental Guidelines forthe Evaluation of Risk and Avoidance ofUnanticipated Takings’’ issued underthe executive order. This rule does notimpose an information collectionburden under the provisions of thePaperwork Reduction Act of 1995 (44U.S.C. 3501 et seq.).

The Congressional Review Act, 5U.S.C. section 801 et seq., as added bythe Small Business RegulatoryEnforcement Fairness Act of 1996,generally provides that before a rulemay take effect, the agencypromulgating the rule must submit arule report, which includes a copy ofthe rule, to each House of the Congressand to the Comptroller General of theUnited States. EPA will submit a reportcontaining this rule and other requiredinformation to the U.S. Senate, the U.S.House of Representatives, and theComptroller General of the UnitedStates prior to publication of the rule inthe Federal Register. This rule is not a‘‘major’’ rule as defined by 5 U.S.C.section 804(2). This rule will beeffective June 11, 2001.

Under section 307(b)(1) of the CAA,petitions for judicial review of thisaction must be filed in the United StatesCourt of Appeals for the appropriatecircuit by July 9, 2001. Filing a petitionfor reconsideration by the Administratorof this final rule does not affect thefinality of this rule for the purposes ofjudicial review nor does it extend thetime within which a petition for judicialreview may be filed, and shall notpostpone the effectiveness of such ruleor action. This action may not bechallenged later in proceedings toenforce its requirements. (See section307(b)(2).)


Environmental protection, Airpollution control, Hydrocarbons,Intergovernmental relations, Nitrogenoxides, Ozone, Reporting andrecordkeeping requirements, Volatileorganic compounds.

Dated: January 19, 2001.William J. Muszynski,Acting Regional Administrator, Region 2.

Part 52, chapter I, title 40 of the Codeof Federal Regulations is amended asfollows:

PART 52—[AMENDED]


Authority: 42 U.S.C. 7401 et seq.

Subpart HH—New York

2. Section 52.1683 is amended byadding new paragraph (h) to read asfollows:

§ 52.1683 Control strategy: Ozone.

* * * * *(h)(1) The 1990 base year emission

inventory as revised on February 2,1999 (Volatile organic compounds(VOC), Nitrogen oxides (NOX) andCarbon monoxide (CO) for areasdesignated nonattainment for ozonesince 1991 in New York) is approved.

(2) The 1996 and 1999 ozoneprojection year emission inventoriesincluded in New York’s February 2,1999 State Implementation Planrevision for the New York portion of theNew York-Northern New Jersey-LongIsland nonattainment area are approved.

(3) The 1996 and 1999 conformityemission budgets for the New Yorkportion of the New York-Northern NewJersey-Long Island nonattainment areaincluded in New York’s February 2,1999 State Implementation Planrevision are approved.

(4) The photochemical assessmentmonitoring stations network included inNew York’s February 2, 1999 StateImplementation Plan revision isapproved.

(5) The demonstration that emissionsfrom growth in vehicle miles traveledwill not increase total motor vehicleemissions and, therefore, offsettingmeasures are not necessary, which wasincluded in New York’s February 2,1999 State Implementation Planrevision for the New York portion of theNew York-Northern New Jersey-LongIsland nonattainment area is approved.

(6) The enforceable commitments to:participate in the consultative process toaddress regional transport; adoptadditional control measures asnecessary to attain the ozone standard,meeting rate of progress requirements,and eliminating significant contributionto nonattainment downwind; identifyany reductions that are needed fromupwind areas for the area to meet theozone standard, included in New York’sFebruary 2, 1999 State ImplementationPlan revision for the New York portionof the New York-Northern New Jersey-Long Island nonattainment area areapproved.

(7) The 15 Percent Rate of ProgressPlan and the 9 Percent ReasonableFurther Progress Plan included in the

New York’s February 2, 1999 StateImplementation Plan revision for theNew York portion of the New York-Northern New Jersey-Long Islandnonattainment area are approved.

[FR Doc. 01–11835 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–P


40 CFR Part 62

[Region 2 Docket No. NY46–217a, FRL–6977–2]

Approval and Promulgation of StatePlans For Designated Facilities; NY

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Direct final rule.

SUMMARY: EPA is approving the NewYork supplementary submittal formeeting EPA’s conditional approval ofthe New York State Plan for regulatingexisting MSW Landfills. The State Planestablishes performance standards forexisting Municipal Solid Waste landfillslocated in New York State and providesfor the implementation and enforcementof those standards, which will reducethe designated pollutants.DATES: This direct final rule is effectiveon July 9, 2001 without further notice,unless EPA receives adverse commentby June 11, 2001. If EPA receives suchcomment, EPA will publish a timelywithdrawal in the Federal Registerinforming the public that this rule willnot take effect.ADDRESSES: All comments should beaddressed to: Raymond Werner, Chief,Air Programs Branch, EnvironmentalProtection Agency, Region 2 Office, 290Broadway, New York, New York 10007–1866.

Copies of the state submittals areavailable at the following addresses forinspection during normal businesshours:

Environmental Protection Agency,Region 2 Office, Air Programs Branch,290 Broadway, 25th Floor, New York,New York 10007–1866.

New York State Department ofEnvironmental Conservation, Divisionof Air Resources, 50 Wolf Road, Albany,New York 12233.

Environmental Protection Agency, Airand Radiation Docket and InformationCenter, Air Docket (6102), 401 M Street,SW., Washington, DC 20460.FOR FURTHER INFORMATION CONTACT:Craig Flamm, Air Programs Branch,Environmental Protection Agency, 290Broadway, 25th Floor, New York, New



York 10007–1866, (212) 637–4021,email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

On July 19, 1999 (64 FR 38582), EPAconditionally approved the New YorkState Plan for regulating existingMunicipal Solid Waste (MSW)Landfills. The reader is referred to theJuly 19, 1999 rulemaking action for amore detailed description and therationale of EPA’s conditional approvalof the New York MSW Landfills StatePlan. The conditional approval wascontingent on New York providing EPAwith modified Title V or State OperatingPermits containing complianceschedules with all five increments ofprogress outlined in Subpart Cc of 40CFR part 60, the Emission Guidelinesfor existing Municipal Solid WasteLandfills. The permits were due withinone year of the effective date of theconditional approval, September 17,1999.

On September 18, 2000, the New YorkState Department of EnvironmentalConservation (NYSDEC) submitted astatement that NYSDEC inspected allpreviously identified landfills in NewYork that meet the criteria for a majorsource. The NYSDEC identified onelandfill out of compliance and onenewly identified landfill which iscurrently under review by the NSDECand which might require controls. TheNYSDEC stated that during theinspections it was confirmed that therest of the landfills in question were incompliance with New York’s State Planthereby making increments of progressunnecessary for these landfills.

The two landfills that are not incompliance currently are the OntarioLandfill and the Babylon Landfill. EPAreceived a timely Title V operatingpermit with appropriate increments ofprogress and compliance deadlines forthe Ontario Landfill. The BabylonLandfill was discovered only recentlyby NYSDEC, and EPA is confident thatthe landfill was discovered in good faithand that an appropriate applicabilitydetermination will be completed in atimely manner and a complianceschedule with increments of progresswill be submitted to the EPA if they areneeded. All remaining landfills in NewYork have met the requirements for allfive increments of progress. Should NewYork identify any new Municipal SolidWaste Landfills that meet the existinglandfill criteria and require controls,New York shall submit increments ofprogress for those facilities as well tothe EPA.

Conclusion

EPA has evaluated the MunicipalSolid Waste Landfill State Plansubmitted by New York for consistencywith the Act, EPA guidelines andpolicy. EPA has determined that NewYork’s State Plan contains allapprovable elements and criticalcompliance dates. Therefore, EPA isapproving New York’s Plan toimplement and enforce 40 CFR SubpartCc, as it applies to existing MSWLandfills.

The EPA is publishing this rulewithout prior proposal because theAgency views this as a noncontroversialsubmittal and anticipates no adversecomments. However, in the proposedrules section of this Federal Registerpublication, EPA is publishing aseparate document that will serve as theproposal to approve the State Planrevision should adverse comments befiled. This rule will be effective July 9,2001 without further notice unless theAgency receives adverse comments byJune 11, 2001.

If the EPA receives adversecomments, then EPA will publish atimely withdrawal in the FederalRegister informing the public that therule will not take effect. EPA willaddress all public comments in asubsequent final rule based on theproposed rule. The EPA will notinstitute a second comment period onthis action. Any parties interested incommenting must do so at this time.

Administrative Requirements

Under Executive Order 12866 (58 FR51735, October 4, 1993), this final actionis not a ‘‘significant regulatory action’’and therefore is not subject to review bythe Office of Management and Budget.This final action merely approves statelaw as meeting federal requirements andimposes no additional requirementsbeyond those imposed by state law.Accordingly, the Administrator certifiesthat this final rule will not have asignificant economic impact on asubstantial number of small entitiesunder the Regulatory Flexibility Act (5U.S.C. 601 et seq.). Because this ruleapproves pre-existing requirementsunder state law and does not imposeany additional enforceable duty beyondthat required by state law, it does notcontain any unfunded mandate orsignificantly or uniquely affect smallgovernments, as described in theUnfunded Mandates Reform Act of 1995(Public Law 104–4). For the samereason, this final rule also does notsignificantly or uniquely affect thecommunities of tribal governments, asspecified by Executive Order 13084 (63

FR 27655, May 10, 1998). This final rulewill not have substantial direct effectson the States, on the relationshipbetween the national government andthe States, or on the distribution ofpower and responsibilities among thevarious levels of government, asspecified in Executive Order 13132 (64FR 43255, August 10, 1999), because itmerely approves a state ruleimplementing a federal standard, anddoes not alter the relationship or thedistribution of power andresponsibilities established in the CleanAir Act. This final rule also is notsubject to Executive Order 13045 (62 FR19885, April 23, 1997), because it is noteconomically significant.

In reviewing State Plan submissions,EPA’s role is to approve state choices,provided that they meet the criteria ofthe Clean Air Act. In this context, in theabsence of a prior existing requirementfor the State to use voluntary consensusstandards (VCS), EPA has no authorityto disapprove a State Plan submissionfor failure to use VCS. It would thus beinconsistent with applicable law forEPA, when it reviews a State Plansubmission, to use VCS in place of aState Plan submission that otherwisesatisfies the provisions of the Clean AirAct. Thus, the requirements of section12(d) of the National TechnologyTransfer and Advancement Act of 1995(15 U.S.C. 272 note) do not apply. Asrequired by section 3 of Executive Order12988 (61 FR 4729, February 7, 1996),in issuing this final rule, EPA has takenthe necessary steps to eliminate draftingerrors and ambiguity, minimizepotential litigation, and provide a clearlegal standard for affected conduct. EPAhas complied with Executive Order12630 (53 FR 8859, March 15, 1988) byexamining the takings implications ofthe rule in accordance with the‘‘Attorney General’s SupplementalGuidelines for the Evaluation of Riskand Avoidance of UnanticipatedTakings’’ issued under the executiveorder. This rule does not impose aninformation collection burden under theprovisions of the Paperwork ReductionAct of 1995 (44 U.S.C. 3501 et seq.).

The Congressional Review Act, 5U.S.C. 801 et seq., as added by the SmallBusiness Regulatory EnforcementFairness Act of 1996, generally providesthat before a rule may take effect, theagency promulgating the rule mustsubmit a rule report, which includes acopy of the rule, to each House of theCongress and to the Comptroller Generalof the United States. EPA will submit areport containing this rule and otherrequired information to the U.S. Senate,the U.S. House of Representatives, andthe Comptroller General of the United



States prior to publication of the rule inthe Federal Register. This rule is not a‘‘major’’ rule as defined by 5 U.S.C.804(2). This rule will be effective July 9,2001.

Under section 307(b)(1) of the CleanAir Act, petitions for judicial review ofthis action must be filed in the UnitedStates Court of Appeals for theappropriate circuit by July 9, 2001.Filing a petition for reconsideration bythe Administrator of this final rule doesnot affect the finality of this rule for thepurposes of judicial review nor does itextend the time within which a petitionfor judicial review may be filed, andshall not postpone the effectiveness ofsuch rule or action. This action may notbe challenged later in proceedings toenforce its requirements. (See section307(b)(2).)


Environmental protection, Airpollution control, Intergovernmentalrelations, Methane, Municipal solidwaste landfills, Nonmethane organiccompounds, Reporting andrecordkeeping requirements.

Dated: April 19, 2001.William J. Muszynski,Acting Regional Administrator, Region 2.[FR Doc. 01–11829 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–P

CHEMICAL SAFETY AND HAZARDINVESTIGATION BOARD

40 CFR Part 1611

Testimony by Employees in LegalProceedings

AGENCY: Chemical Safety and HazardInvestigation Board.ACTION: Final rule.

SUMMARY: This rule amends 40 CFR part1611 (Testimony by Employees in LegalProceedings), published at 66 FR 17364(March 30, 2001). Part 1611 provides theChemical Safety and HazardInvestigation Board’s (CSB) policyconcerning testimony of CSB employeesin legal proceedings. This rule amends§ 1611.2 (Definitions) to add a definitionof ‘‘employee’’ and amends § 1611.6(Testimony of former CSB employees) toadd a requirement that formeremployees notify the CSB GeneralCounsel when they are served with asubpoena relating to work performed forthe CSB.DATES: This rule is effective May 10,2001.

FOR FURTHER INFORMATION CONTACT:Raymond C. Porfiri, (202) 261–7600.

SUPPLEMENTARY INFORMATION: (1)Amendment to section 1611.2. Thecurrent CSB rule on testimony byemployees in legal proceedings, 40 CFRpart 1611, published at 66 FR 17364(March 30, 2001) does not define‘‘employee.’’ The CSB has determinedthat for the purpose of part 1611 (as wellas part 1612, ‘‘Production of Records inLegal Proceedings’’) ‘‘employee’’ shouldbe defined to include all those whoundertake work for the CSB and whomay come into contact with protectedinformation. Thus ‘‘employee’’ isdefined to include: current or formerCSB Board Members or employees,including student interns, andcontractors, contract employees, orconsultants (and their employees). But itis made clear that this definition doesnot include persons who are no longeremployed by or under contract to theCSB, and who are retained or hired asexpert witnesses or agree to testify aboutmatters that do not involve their workfor the CSB.

Other agencies have included asimilarly broad definition of employeefor this purpose. See, e.g., FederalEnergy Regulatory Commission, 18 CFR388.111; Department of State, 22 CFR172.1; USAID, 22 CFR 206.1; OverseasPrivate Investment Corporation, 22 CFR713.10; Department of the Navy, 32 CFR725.4; and U.S. Postal Service, 39 CFR265.13. Moreover, CSB contractors arealready required to sign non-disclosureagreements, prohibiting them fromdisclosing in any forum (except to CSBemployees) trade secret or confidentialbusiness information obtained in theirwork for the CSB.

The need for this broad definition ofemployee is even more necessary at theCSB because, pursuant to 42 U.S.C.7412(r)(6)(G), no part of the conclusions,findings or recommendations of the CSBrelating to an accidental release or theinvestigation thereof, may be admittedas evidence or used in any suit or actionfor damages growing out of any mattermentioned in such report.

(2) Amendment to section 1611.6. Thecurrent rule pertaining to formeremployees is clarified to include arequirement that any former employeewho is served with a subpoena toappear and testify in connection withcivil litigation that relates to his or herwork with the CSB, shall immediatelynotify the CSB General Counsel andprovide all information requested by theGeneral Counsel. This clarification isnecessary to give notice to formeremployees of their obligation in thisregard, and to provide the agency withadvance notice of a potential problem.

Public Comment Procedures: Becausethis rule amends an internal policy for

CSB employees, the AdministrativeProcedure Act does not require that it bepublished as a proposed regulation fornotice and public comment. See 5U.S.C. 553(a)(2). This rule providesimmediate clarifying guidancepertaining to CSB employee testimony.As such, the CSB finds that good causeexists for making the regulation effectiveimmediately upon publication. See 5U.S.C. 553(b)(3)(B).

Compliance With Other Laws

Regulatory Planning and Review (E.O.12866)

This regulation is not a significantrule and is not subject to review by theOffice of Management and Budget underExecutive Order 12866.

(1) This regulation will not have aneffect of $100 million or more on theeconomy. This regulation regulates howand when CSB employee testimony maybe provided in certain situations. Assuch, it will not adversely affect in amaterial way the economy, productivity,competition, jobs, the environment,public health or safety, or State, local,or Tribal governments or communities.

(2) This regulation will not create aserious inconsistency or interfere withan action taken or planned by anotheragency.

(3) This regulation does not alter thebudgetary effects or entitlements, grants,user fees, or loan programs or the rightsor obligations of their recipients.

(4) This regulation is consistent withwell-established constitutional andstatutory principles and does not raisenovel legal or policy issues.

Regulatory Flexibility Act

The CSB certifies that this regulationwill not have a significant economiceffect on a substantial number of smallentities under the Regulatory FlexibilityAct (5 U.S.C. 601 et seq.). Thisregulation merely regulates how andwhen CSB employees may testify incertain situations.

Small Business Regulatory EnforcementFairness Act

This regulation is not a major ruleunder 5 U.S.C. 804(2), the SmallBusiness Regulatory EnforcementFairness Act. Because this regulationonly regulates how and when CSBemployees may testify in certainsituations, this regulation:

a. Does not have an annual effect onthe economy of $100 million or more.

b. Will not cause a major increase incosts or prices for consumers,individual industries, Federal, State,local government agencies or geographicregions.



c. Does not have a significant adverseeffect on competition, employment,investment, productivity, innovation orthe ability of U.S.-based enterprises tocompete with foreign-based enterprises.

Unfunded Mandates Reform Act

This regulation does not impose anunfunded mandate on State, local, ortribal governments or the private sectorof more than $100 million per year. Thisregulation does not have a significant orunique effect on State, local or tribalgovernments or the private sectorbecause this regulation only regulateshow and when CSB employees maytestify in certain situations. A statementcontaining the information required bythe Unfunded Mandates Reform Act (2U.S.C. 1531 et seq.) is not required.

Takings (E.O. 12630)

In accordance with Executive Order12630, this regulation does not havesignificant takings implications. Atakings implication assessment is notrequired.

Federalism (E.O. 13132)

The CSB has determined thisregulation conforms to the Federalismprincipals of Executive Order 13132. Italso certifies that to the extent aregulatory preemption occurs, it isbecause the exercise of State and Tribalauthority conflicts with the exercise ofFederal authority under the U.S.Constitution’s Supremacy Clause andFederal statute. This regulation is,however, restricted to the minimumlevel necessary to achieve the objectivesof 5 U.S.C. 301 pursuant to which thisregulation is promulgated.

Civil Justice Reform (E.O. 12988)

In accordance with Executive Order12988, the CSB has determined that thisregulation does not unduly burden thejudicial system, and does meet therequirements of section 3(a) and 3(b)(2)of the Order.

Paperwork Reduction Act

This regulation contains no reportingor recordkeeping requirements whichrequire approval by the Office ofManagement and Budget under 44U.S.C. 3510 et seq.

National Environmental Policy Act(NEPA)

This regulation does not constitute amajor Federal action significantlyaffecting the quality of the humanenvironment under NEPA, 42 U.S.C.4321 et seq. A detailed statement underthe NEPA is not required.

List of Subjects

Administrative practice andprocedure, Freedom of information,Government employees, Investigations,Testimony of employees.

For the reasons stated in thepreamble, the Chemical Safety andHazard Investigation Board amends 40CFR part 1611 as follows:

PART 1611—TESTIMONY BYEMPLOYEES IN LEGALPROCEEDINGS


Authority: 5 U.S.C. 301, 42 U.S.C.7412(r)(6)(G).

2. Amend § 1611.2 to add a newdefinition paragraph as follows:

§ 1611.2 Definitions.

* * * * *Employee, for the purpose of this part

and part 1612 of this chapter, refers tocurrent or former CSB Board Membersor employees, including student interns,and contractors, contract employees, orconsultants (and their employees). Thisdefinition does not include persons whoare no longer employed by or undercontract to the CSB, and who areretained or hired as expert witnesses oragree to testify about matters that do notinvolve their work for the CSB.

3. Amend § 1611.6 to redesignate theexisting text as paragraph (a) and to adda new paragraph (b) as follows:

§ 1611.6 Testimony of former CSBemployees.

(a) * * *(b) Any former employee who is

served with a subpoena to appear andtestify in connection with civil litigationthat relates to his or her work with theCSB, shall immediately notify the CSBGeneral Counsel and provide allinformation requested by the GeneralCounsel.

Dated: May 1, 2001.

Christopher W. Warner,General Counsel.[FR Doc. 01–11791 Filed 5–9–01; 8:45 am]

BILLING CODE 6350–01–U

DEPARTMENT OF HEALTH ANDHUMAN SERVICES

Administration for Children andFamilies

45 CFR Part 270

RIN 0970–AC06

High Performance Bonus AwardsUnder the TANF Program

AGENCY: Administration for Childrenand Families, HHS.ACTION: Interim final rule; request forcomments.

SUMMARY: The final rule covering theTemporary Assistance for NeedyFamilies (TANF) high performancebonuses to States in FY 2002 andbeyond was published August 30, 2000(65 FR 52814). This interim finalregulation further implements the childcare measure, one of the measures onwhich we will award bonuses to Statesin FY 2002 and FY 2003.

Specifically, we explain how we willcompute scores and rank States on theaffordability component using fourincome ranges and a comparison of thenumber of children eligible under theState’s income limits compared to thefederal eligibility limits. We also specifyhow we will compute scores and rankStates for the child care qualitycomponent based on new reportingrequirements for market rate surveys forchild care.DATES: Effective date: This interim finalrule is effective on May 10, 2001, exceptfor § 270.4(e)(2)(ii) which requires aninformation collection that is not yetapproved by the Office of Managementand Budget (OMB). We will publish adocument in the Federal Registerannouncing the effecitve date of§ 270.4(e)(2)(ii) when the additionaldata collection requirement is approvedby OMB.

Comment period: You may submitcomments through July 9, 2001. We willnot consider comments received afterthis date.ADDRESSES: You may mail comments tothe Administration for Children andFamilies, Child Care Bureau, 330 CStreet SW., Room 2046, Washington, DC20447. Attention: Gail Collins.

Commenters may also providecomments on the ACF website.Electronic comments must include thefull name, address and organizationalaffiliation (if any) of the commenter.This interim rule is accessibleelectronically via the Internet from theACF Welfare Reform Home Page athttp:www.acf.dhhs.gov/news/welfare.



FOR FURTHER INFORMATION CONTACT: GailCollins, Acting Deputy Commissioner,Administration for Children, Youth andFamilies at (202) 205–8347. Ms.Collins’s e-mail address is:[email protected] INFORMATION:

Table of ContentsI. Background

A. The Temporary Assistance for NeedyFamilies Program.

B. Summary of the Statutory ProvisionsRelated to the High Performance BonusAwards.

C. High Performance Bonus Regulations.II. The Child Care Measure

A. Summary of the Child Care Measure inthe Final Rule.

B. Consultation with States and OtherOrganizations.

C. Changes Made in this Interim FinalRule.

III. Justification for an Interim Final RuleIV. Regulatory Impact Analyses

A. Executive Order 12866.B. Regulatory Flexibility Analysis.C. Assessment of the Impact on Family

Well-Being.D. Paperwork Reduction Act.E. Unfunded Mandates Reform Act of 1995.F. Congressional Review.G. Executive Order 13132.

I. Background

A. The Temporary Assistance for NeedyFamilies Program

Title I of the Personal Responsibilityand Work Opportunity ReconciliationAct of 1996, Pub. L. 104–193,established the Temporary Assistancefor Needy Families (TANF) programunder title IV–A of the Social SecurityAct (the Act), 42 U.S.C. 401 et seq.TANF is a block grant program designedto make dramatic reforms in the nation’swelfare system. Its focus is on movingrecipients into work and turning welfareinto a program of temporary assistance,preventing and reducing the incidenceof out-of-wedlock births, and promotingstable two-parent families. Other keyfeatures of TANF include provisionsthat emphasize program accountabilitythrough financial penalties and rewardsfor high performance.

B. Summary of the Statutory ProvisionsRelated to the High Performance Bonus

Section 403(a)(4) of the Act requiresthe Secretary to award bonuses to ‘‘highperforming States.’’ (Indian tribes arenot eligible for these bonuses.) The term‘‘high performing State’’ is defined insection 403(a)(4) of the Act to mean aState that is most successful inachieving the purposes of the TANFprogram as specified in section 401(a) ofthe Act. These purposes are to—

(1) Provide assistance to needyfamilies so that children may be cared

for in their own homes or in the homesof relatives;

(2) End the dependence of needyparents on government benefits bypromoting job preparation, work, andmarriage;

(3) Prevent and reduce the incidenceof out-of-wedlock pregnancies andestablish annual numerical goals forpreventing and reducing the incidenceof these pregnancies; and

(4) Encourage the formation andmaintenance of two-parent families.

Section 403(a)(4)(B) of the Actspecifies that the bonus award for afiscal year will be based on a State’sperformance in the previous fiscal yearand may not exceed five percent of theState’s family assistance grant.

Section 403(a)(4)(C) of the Actrequires the Department to develop aformula for measuring Stateperformance in consultation with theNational Governors’ Association and theAmerican Public Welfare Association,now known as the American PublicHuman Services Association.

Section 403(a)(4)(D) of the Actrequires the Secretary to use the formuladeveloped to assign a score to eacheligible State for the fiscal yearpreceding the bonus year and prescribea performance threshold as the basis forawarding the bonus. Section403(a)(4)(D) of the Act also specifies that$1 billion (or an average total of $200million each year) will be awarded overfive years, beginning in FY 1999.

C. High Performance Bonus RegulationsOn December 6, 1999, we published

a Notice of Proposed Rulemaking(NPRM) covering the bonus awards inFY 2002 and beyond. The NPRMproposed the measures, the formula forallocating funds, and the data sources,methodologies, and specifications foreach measure. The final rule, publishedon August 30, 2000 (65 FR 52814),provided that we would base thebonuses in FY 2002 and beyond on fourwork measures; a measure on familyformation and stability; and threemeasures that support work and self-sufficiency, i.e., participation by low-income working families in the FoodStamp Program, participation in theMedicaid and State Children’s HealthInsurance Program (SCHIP), and a childcare measure. The methodologies andspecification for all of the measures,except for the child care measure, werecompletely specified in the final rule.

Although it had not been proposed inthe NPRM, we added the child caremeasure in the final rule since westrongly agreed with commenters thatchild care subsidies or assistancerepresent an essential support for low-

income families and are a critical partof a successful welfare reform program.We stated in the preamble to the finalrule that we planned to engage Statesand others, particularly data experts, indiscussions regarding the technicalitiesof implementing key elements of thechild care measure. While there weremany comments in support of a childcare measure, there was no opportunityfor detailed consultation or publiccomment on the technical aspects of thenew measure, as it had not beenincluded in the NPRM.

We particularly wanted to obtain theStates’ views on, and information about,issues for which we lacked specificknowledge, such as State data systems.We stated that we planned to hold theseconsultations and issue detailsregarding the components of thismeasure by the end of the calendar year.

II. The Child Care Measure

A. Summary of the Child Care Measurein the Final Rule

The final rule provided that $10million would be allocated annually forbonus awards under the child caremeasure. The specific provisions of themeasure appear at § 270.4(e) of the finalrule. See regulatory text at the end ofthis document.

Briefly, the measure includes threecomponents:

• Child care accessibility, asmeasured by the percent of children,eligible under the Child Care andDevelopment Fund (CCDF)requirements, who are receivingservices, including eligible childrenserved with additional funds;

• Child care affordability, based on acomparison of reported assessed familyco-payment to reported family income;and

• Child care quality, as indicated bya comparison of the actual amounts paidfor children receiving CCDF subsidies tolocal market rates in the State.

We will base the bonus awards for FY2002 on a composite ranking of Statescores on accessibility and affordability.We will base the bonus awards for FY2003 on a composite ranking ofaccessibility, affordability, and quality.The weights of the various componentsin computing the composite score arespecified in § 270.4(e).

No new data collection is required inorder to compete on the twocomponents of the child care measure inFY 2002. We will use existing CCDFdata and Census Bureau data as the datasource for family incomes at 85 percentof the State’s median income, i.e., theFederal eligibility limit in the CCDFprogram. We will also calculate the



percentage of potentially-eligiblechildren served by dividing the numberof children served with ‘‘pooled’’ funds,that is, CCDF funds (including transfersfrom TANF) and any other funds Statesuse to serve eligible children, by thenumber of children eligible under theFederal criteria.

For bonus awards FY 2003 andbeyond, we will base the qualitycomponent on the actual rates Statespay for children receiving CCDFsubsidies, as reported on the ACF–801,as compared to State data on actualmarket rates.

B. Consultations With States and OtherOrganizations

In determining the specifications forthe affordability component, we wereaware that States have tremendousflexibility in setting sliding fee scalesunder the regulations governing theCCDF program which they use tobalance different needs and make childcare affordable for families at a range ofincomes. How to fairly score and rankStates in light of the diversity in Statepractice was one of the major issues onwhich we sought further advice.

The market rate survey and the datacollected as a part of the survey werealso issues on which we sought advice.The CCDF statute requires States toconduct a market rate surveyperiodically as a way of monitoringtheir program, but there is noconsistency in how States conduct thesesurveys, and we have not requiredStates to submit their surveys or thesurvey results to ACF. In the preambleto the final rule, we stated that wewould consult with States and otherexperts on the market rate data Stateswould need to submit in order tocompete on this measure, the processfor submitting the data, and themethodology we would use for rankingStates on this component.

Beginning in October, 2000, wecontacted all States and approximately30 advocacy organizations, includingagencies and organizations that hadcommented on this issue in the NPRM,inviting them to consult with us onissues related to the child care measure.

At the first consultation meeting, weasked for individuals to participate inintensive discussions over the next twomonths.

We established two child careworkgroups—one for State agency staffand the other for representatives ofadvocacy and other agencies andorganizations.

The State workgroups, made up ofapproximately 20 State representatives,met on five occasions by conferencecall. We faxed information to the

workgroup members for review prior toeach conference call and had extensivefollow-up discussions. The advocateworkgroup, made up of representativesof approximately 10 organizations, mettwice in two months by similarconference calls. In addition, the ChildCare Bureau in ACF requested inputfrom all States through the regionaloffices of ACF and in publicpresentations to State representatives.

The consultations focused on thefollowing major issues:

Accessibility

• Were the data readily available?• What did States need to know to

‘‘pool’’ data properly?

Affordability

• What was the effect of using theState’s Median Income as a standard forthis component?

• Did it matter how States define‘‘income’?

• What income levels, if any, shouldbe used in this component?

• How should we address family sizein the calculations?

Quality

• How reliable are the data collectedby the States in their market ratesurveys?

• What types of child care should becompared?

• How could this component accountfor States with large rural populations ascompared to States with large urbancenters?

C. Changes Made in this Interim FinalRule

As a result of our consultations, weare amending the child care measure toadd the following clarifications andspecifications.

The Accessibility Component

In the final rule, we referenced theACF–696 financial reporting form as thesource of the information on thecounting of children served by ‘‘pooled’’funds. We are taking this opportunity toupdate § 270.4(e)(1)(i) to delete thereference to the ACF–696 and replace itwith a reference to the recently revisedACF–800 and ACF–801. These tworeporting forms are now better sourcesof the data on the number of childrenserved with all sources of funds used bythe State. We believe this change is notonly an update for accuracy, but alsowill avoid confusion in the future. Weare deleting the phrase ‘‘including anysuch eligible children served withadditional funds reported on the ACF–696 financial reporting form’’ andreplacing it with the words ‘‘and who

are included in the data reported on theACF–800 and the ACF–801.’’

No additional guidance orspecifications are needed to implementthis component. We will use data fromthe ACF–800 and ACF–801 to computescores and rank States.

The Affordability Component

There is considerable variation amongStates in the amount of co-payments,expressed as a percent of income, thatparents are asked to pay at differentincome levels, particularly above thepoverty level. In our consultations withboth States and advocate groups, wewere encouraged to look at affordabilityfor families at several differentincrements of income.

Therefore, we specify in § 270.4(e)(3)that we will compare family income tothe assessed State co-payment for childcare, based on four income ranges.These income ranges refer topercentages of the Federal PovertyGuidelines for a family of three persons.The income ranges are as follows:

• Income below the poverty level;• Income at least 100 percent and

below 125 percent of poverty;• Income at least 125 percent and

below 150 percent of poverty; and• Income at least 150 percent and

below 175 percent of poverty.For a family of three in FY 2001,100 percent of the Federal Poverty

Guidelines is $14,150;125 percent of the Federal Poverty

Guidelines is $17,687;150 percent of the Federal Poverty

Guidelines is $21,225; and175 percent of the Federal Poverty

Guidelines is $24,762.Although the maximum allowable

income eligibility limit for child care isbased on State Median Income (e.g., 85percent of the SMI), we wereencouraged in our consultations to usepercent of the poverty level for thiscomparison between family income andassessed family co-payments. Thepoverty level remains constant acrossStates, while the SMI varies from Stateto State.

We were also encouraged to considerfamily size in the measure ofaffordability. However, family size isnot currently included in the datareported by States on the ACF 800 or801. Therefore, we have chosen not torequire this information at this timebecause it would result in additionaldata collection and reporting burden.

We have selected these income rangesthat refer to percentages of poverty fora family of three for comparison ofassessed co-payments across Statesbecause existing State data indicate thatthe majority of families are receiving



care for only one or two children. Whilesome States establish their incomeeligibility limits below 175 percent ofthe Federal Poverty Guidelines, allStates are serving some largerhouseholds with incomes up to $25,000,which equals approximately 175percent of the Federal PovertyGuidelines for a family of three.However, we are limited in our abilityto measure and compare co-paymentsacross States for families with incomelevels beyond $25,000 because someStates are serving few families beyondthis point.

Limiting our measure of average co-payments to families earning up to$25,000 could potentially disadvantageStates that choose to serve families withhigher incomes. We know that someStates make use of modest co-paymentsacross a broad range of income in orderto extend eligibility higher up theincome scale. Families above the State’sincome guidelines would not be eligibleto be served at all and would, therefore,pay 100 percent of the cost of care.

States serving households above$25,000 could have lower than averageco-payments across the range ofincomes that they serve, but this wouldnot be captured in the measure thatexamines co-payments only up to$25,000. For example, State A hasestablished an income eligibility limit of$24,000 for a family of three. State B hasestablished an income limit of $28,000for a family of the same size, and a co-payment rate of 11 percent of familyincome. Although a family with anannual income below $24,000 mightface higher co-payments in State B thanin State A, a family with income above$24,000 would be ineligible in State A.A family in State A with an annualincome of $26,000 would pay 100percent of the cost of care, which wouldlikely be 20 percent or more of annualincome. A family with the same incomein State B would have an assessed co-payment rate of only 11 percent.

In order to address this diversity, ourmethodology also addresses State effortto provide access to affordable co-payments to a broader range of families.As a part of the affordability component,we will also rank States based on theratio of the number of children eligibleunder the State-defined income limits,as specified in the State CCDF Plan,compared to the number of childreneligible under the Federal eligibilitylimit for the CCDF (85% of State’smedian income (SMI)).

In § 270.4(e)(4), we clarify how wewill compute the scores and rank theStates on this component. We specifythat, for each State competing on thismeasure, we will calculate, for each of

the four income ranges, the average ofthe ratios of family co-payment tofamily income for each individualfamily. Next, we will calculate a fifthratio of the number of children eligibleunder the State’s defined income limitscompared to the number of childreneligible under the Federal eligibilitylimits in the CCDF, i.e., 85 percent ofthe State’s median income. Finally, wewill rank each State based on each ofthe five ratios and will combine the fiverankings for each State to obtain theState’s score on this component.

The Quality ComponentWe specify in § 270.4(e)(5) that we

will compare the actual rates paid bythe State as reported on the ACF–801(not the published maximum rates) tothe market rates applicable to theperformance year. In order to have thedata to make this comparison, we arerequiring that, if a State wishes tocompete on this measure, it must submittwo specific items of information fromits market rate survey. The two itemsare:

• Age-specific rates for children 0–13years of age as reported by the child carecenters and family day care homesresponding to the State’s market ratesurvey; and

• the provider’s county or, if the Stateuses multi-county regions to measuremarket rates or set maximum paymentrates, the administrative region.

We have selected the parameters ofage of child, type of provider, andlocation of provider, because the ratescharged by providers (that is marketrates) vary substantially based on thesefactors. States must take these factorsinto account when setting payment ratesthat assure equal access to the full rangeof provider types for children from 0–13 years of age.

In § 270.4(e)(6), we specify how wewill compute the scores and rank Stateson this component. We will computethe percentile of the market representedby the amount paid for each child asreported on the ACF–801 by comparingthe actual payment for each child to thearray of reported market rates forchildren of the same age in the relevantcounty or administrative region.(Payments for children in center-basedcare will be compared to reported centercare rates; payments for children in non-center-based care, i.e., family day careand unlicensed child care, will becompared to reported family child careprovider rates.)

Finally, we will take the percentilethat results from the per-childcomparison of the actual payment to thereported market rates and computeseparate State-wide averages for center-

based and non-center-based care. EachState will be ranked on each of the twoaverages. The two rankings will becombined to obtain the State’s finalscore on this component.

III. Justification for This Interim FinalRule

The time frames for implementingand operationalizing the highperformance bonus award system areextremely short. It became clear, even aswe published the final highperformance bonus rule in August,2000, that States would need immediateand additional guidance, clarification,and specificity about our expectationsin order to make program decisions,collect data, and prepare themselves tocompete successfully for child carebonuses in FY 2002 and FY 2003.However, it was equally clear that inorder to arrive at a reliable and workablemeasurement system, it was necessaryto consult extensively with the NationalGovernors’ Association (NGA), theAmerican Public Human ServicesAssociation (APHSA), States, andothers, which we did through earlyDecember. The provisions of thisinterim final rule reflect the informationand recommendations we received inthese consultations.

We have determined that publicationof an NPRM is unnecessary, impractical,and not in the public interest. Webelieve it is in the public interest tohave the maximum possible number ofStates compete for bonuses under theTANF program and that they be able tostructure their programs to successfullycompete on each of the bonus measures.Without the additional informationcontained in this interim final rule,States will not know how they will beranked on the child care affordabilitymeasure in FY 2002. The performanceyear for FY 2002 is FY 2001, the currentfiscal year. Unless States are given thisinformation in a timely way, they willbe unable to have an opportunity tomake program changes or take otheractions in this fiscal year to preparethemselves to compete on this measure.There is insufficient time to issue bothan NPRM and a final rule and stillprovide States with enough advancenotice to be able to make changes intime to have them be operational duringthe performance year.

Moreover, unless this information isissued as a final rule, States will notknow what information they mustcollect as a part of their child caremarket rate surveys in order to competesuccessfully in FY 2003. States are onlyrequired to conduct these surveys everytwo years. Since some States areconducting their market rate surveys in



FY 2001, it is crucial to advise themquickly about what types of data theywould need to collect in order that theycan design and conduct their FY 2001surveys in a way that will enable themto compete for the child care bonus inFY 2003.

Finally, we believe issuance of anNPRM is unnecessary because we haveconsulted with the States and otherswho commented on the earlier NPRMabout the issues covered by this interimfinal rule and received their input. Wehave incorporated their concerns in thisinterim final rule.

In spite of the need to advise Statesimmediately, we are sensitive to theissue of public notice and comment. Forthat reason we invite comment on theseproposals for the next 60 days.

IV. Regulatory Impact Analyses

A. Executive Order 12866Executive Order 12866 requires that

regulations be drafted to ensure thatthey are consistent with the prioritiesand principles set forth in the ExecutiveOrder. The Department has determinedthat this interim final rule is consistentwith these priorities and principles.

The Executive Order encouragesagencies, as appropriate, to provide thepublic with meaningful participation inthe regulatory process. As describedearlier, ACF consulted with States, theirrepresentative organizations, and abroad range of advocacy groups,researchers, and others to obtain theirviews. This rule reflects the discussionswith, and the concerns of, the groupswith whom we consulted.

This interim final rule will not havean effect on the economy of $100

million or more in any one year,according to section 3(F)(1) of theExecutive Order. We believe the cost ofcompeting for a high performance bonusaward in FY 2002 should be minimalsince competition for these awards willbe based, to the extent possible, onexisting data sources. This interim finalrule was determined to be significantand has been reviewed by the Office ofManagement and Budget.

B. Regulatory Flexibility Analysis

The Regulatory Flexibility Act (5U.S.C. Ch. 6) requires the Federalgovernment to anticipate and reduce theimpact of rules and paperworkrequirements on small businesses andother small entities. Small entities aredefined in the Act to include smallbusinesses, small non-profitorganizations, and small governmentalentities. This rule will affect only the 50States, the District of Columbia, andcertain Territories. Therefore, theSecretary certifies that this rule will nothave a significant impact on smallentities.

C. Assessment of the Impact on FamilyWell-Being

We certify that we have made anassessment of this rule’s impact on thewell-being of families, as required undersection 654 of The Treasury and GeneralAppropriations Act of 1999. The highperformance bonus awards are astatutory part of the TANF program andare designed to reward State efforts instrengthening the economic and socialstability of families and carrying outother purposes in the statute. Thisinterim final rule does not limit State

flexibility to design programs to servethese purposes.

D. Paperwork Reduction Act

Under the Paperwork Reduction Actof 1995 (PRA), no persons are requiredto respond to a collection of informationunless it displays a valid OMB controlnumber. As required by the PRA, wewill submit the data collectionrequirements to OMB for review andapproval.

In FY 2002, no additional reportingburden will be required of the States incompeting on the child care measuresince we will rank States based on datathey currently report under the CCDFprogram (ACF Forms 800 and 801).

However, there will be a reportingburden for the information States mustsubmit if they wish to compete on thechild care measure in FY 2003. Statesmust provide the following informationbased on the child care market ratesurveys that they currently conductevery two years:

• All age-specific rates for children 0–13 years of age reported by the child daycare centers and family day care homesresponding to the State’s market ratesurvey; and

• The provider’s county or, if theState uses multi-county regions tomeasure market rates or set maximumpayment rates, the administrativeregion.

We estimate the reporting burden forreporting these data once every twoyears to be 40 hours per respondenttimes 54 respondents, or 2,160 hours.Annualized, this equals a total burdenof 1,080 hours as shown below:

Instrument or requirement Number ofrespondents

Annualnumber of

responses perrespondent

Averageburden hoursper response

Total annualburden hours

Abstract of Market Rate Survey ...................................................................... 54 0.5 40 1,080

Estimated Total Annual Burden Hours ..................................................... ........................ ........................ ........................ 1,080

We will submit this information toOMB for approval. These requirementswill not become effective until approvedby OMB.

E. Unfunded Mandates Reform Act of1995

Section 202 of the UnfundedMandates Reform Act of 1995(Unfunded Mandates Act) requires thata covered agency prepare a budgetaryimpact statement before promulgating arule that includes any Federal mandatethat may result in the expenditure byState, local, and Tribal governments, in

the aggregate, or by the private sector, of$100 million or more in any one year.

If a covered agency must prepare abudgetary impact statement, section 205further requires that it select the mostcost-effective and least burdensomealternative that achieves the objectivesof the rule and is consistent with thestatutory requirements. In addition,section 203 requires a plan forinforming and advising any smallgovernmental entity that may besignificantly or uniquely impacted bythe proposed rule.

We have determined that this interimfinal rule will not result in theexpenditure by State, local, and Tribalgovernments, in the aggregate, or by theprivate sector, of more than $100million in any one year. Competition fora high performance bonus is entirely atState option. Accordingly, we have notprepared a budgetary impact statement,specifically addressed the regulatoryalternatives considered, or prepared aplan for informing and advising anysignificantly or uniquely impacted Stateor small government.



F. Congressional Review

This interim final rule is not a majorrule as defined in 5 U.S.C., Chapter 8.

G. Executive Order 13132

On August 4, 1999, the Presidentissued Executive Order 13132,‘‘federalism.’’ The purposes of the Orderare: ‘‘to guarantee the division ofgovernmental responsibilities betweenthe national government and the Statesthat was intended by the Framers of theConstitution, to ensure that theprinciples of federalism established bythe Framers guide the executivedepartments and agencies in theformulation and implementation ofpolicies, and to further the policies ofthe Unfunded Mandates ReformAct.* * *’’

We certify that this final rule does nothave a substantial direct effect on States,on the relationship between the Federalgovernment and the States, or on thedistribution of power andresponsibilities among the variouslevels of government. The final ruledoes not pre-empt State law and doesnot impose unfunded mandates.

This rule does not contain regulatorypolicies with federalism implicationsthat would require specificconsultations with State or local electedofficials. The statute, however, requiresconsultations with the NationalGovernors’ Association and theAmerican Public Human ServicesAssociation in the development of ahigh performance bonus system. Prior tothe development of the NPRM and thisinterim final rule, we consulted withrepresentatives of these organizations,State representatives and a broad rangeof nonprofit, advocacy, and communityorganizations; foundations; and others.


Grant programs—social programs;Poverty; Public assistance programs;Reporting and recordkeepingrequirements.

Catalogue of Federal Domestic AssistancePrograms: No. 93.558 Temporary Assistancefor Needy Families (TANF) Program; StateFamily Assistance Grants; Tribal FamilyAssistance Grants; Assistance Grants toTerritories; Matching Grants to Territories;Supplemental Grants for PopulationIncreases; Contingency Fund; HighPerformance Bonus; Decrease in IllegitimacyBonus)

Dated: March 14, 2001.Diann Dawson,Acting Principal Deputy Assistant Secretary,Administration for Children and Families.

Approved: April 10, 2001.Tommy G. Thompson,Secretary, Department of Health and HumanServices.

For the reasons set forth in thepreamble, we are amending 45 CFRChapter II as follows:

PART 270—HIGH PERFORMANCEBONUS AWARDS


Authority: 42 U.S.C. 603(a)(4).

2. In § 270.4, paragraph (e) is revisedto read as follows:

§ 270.4 On what measures will we base thebonus awards?

* * * * *(e) Child care subsidy measure. (1)

Beginning in FY 2002, we will measureState performance based upon acomposite ranking of:

(i) The accessibility of services basedon the percentage of children in theState who meet the maximum allowableFederal eligibility requirements for theChild Care and Development Fund(CCDF) who are served by the Stateduring the performance year, and whoare included in the data reported on theACF–800 and ACF–801 for the samefiscal year; and

(ii) The affordability of CCDF servicesbased on a comparison of the reportedassessed family co-payment to reportedfamily income and a comparison of thenumber of eligible children under theState’s defined income limits to thenumber of eligible children under thefederal eligibility limits.

(2) Beginning in FY 2003, we willmeasure State performance based upona composite ranking of:

(i) The two components described inparagraph (e)(1) of this section; and

(ii) The quality of CCDF servicesbased on a comparison ofreimbursement rates during theperformance year to the market rates,determined in accordance with 45 CFR98.43(b)(2), applicable to that year.

(3) For the affordability component inparagraph (e)(1)(ii) of this section, wewill compare family income to theassessed State family co-payment asreported on the ACF–801 across fourincome ranges. These income rangesrefer to percentages of the FederalPoverty Guidelines for a family of threepersons. The income ranges are asfollows:

(i) Income below the poverty level;

(ii) Income at least 100 percent andbelow 125 percent of poverty;

(iii) Income at least 125 percent andbelow 150 percent of poverty; and

(iv) Income at least 150 percent andbelow 175 percent of poverty.

(4)(i) For the affordability component,we will calculate, for each incomerange, the average of the ratios of familyco-payment to family income for eachfamily served; and

(ii) We will calculate a ratio of thenumber of children eligible under theState’s defined income limits comparedto the number of children eligible underthe Federal eligibility limits in theCCDF, i.e., 85 percent of the State’smedian income.

(iii) We will rank each State based oneach of the four averages calculated inparagraph (e)(4)(i) of this section andthe ratio calculated in paragraph(e)(4)(ii) of this section and combine theranks to obtain the State’s score on thiscomponent.

(5) For the quality componentspecified in paragraph (e)(2)(ii) of thissection, in FY 2003 and beyond, we willcompare the actual rates paid by theState as reported on the ACF–801 (notthe published maximum rates) to themarket rates applicable to theperformance year, i.e., FY 2002. EachState competing on this measure mustsubmit the following data as a part of itsmarket rate survey:

(i) Age-specific rates for children 0–13years of age reported by the child carecenters and family day care homesresponding to the State’s market ratesurvey; and

(ii) The provider’s county or, if theState uses multi-county regions tomeasure market rates or set maximumpayment rates, the administrativeregion.

(6) For the quality component, wewill compute the percentile of themarket represented by the amount paidfor each child as reported on the ACF–801 by comparing the actual paymentfor each child to the array of reportedmarket rates for children of the same agein the relevant county or administrativeregion. (We will compare payments forchildren in center-based care to reportedcenter care provider rates. We willcompare payments for children in non-center-based care, i.e., family day careand unlicensed child care, to reportedfamily child care provider rates.)

(i) We will take the percentile thatresults from the per-child comparison ofthe actual payment to the reportedmarket rates and compute separateState-wide averages for center-based andnon-center-based care; and

(ii) We will rank the State accordingto the two State-wide averages and



combine the ranks to obtain the State’sscore on this component.

(7) For any given year, we will rankthe States that choose to compete on thechild care measure on each componentof the overall measure and awardbonuses to the ten States with thehighest composite rankings.

(8) We will calculate each componentscore for this measure to two decimalpoints. If two or more States have thesame score for a component, we willcalculate the scores for these States to asmany decimal points as necessary toeliminate the tie.

(9)(i) The rank of the measure for theFY 2002 bonus year will be a compositeweighted score of the two componentsat paragraph (e)(1) of this section, withthe component at paragraph (e)(1)(i) ofthis section having a weight of 6 and thecomponent at paragraph (e)(1)(ii) of thissection having a weight of 4.

(ii) The rank of the measure for thebonus beginning in FY 2003 will be acomposite weighted score of the threecomponents at paragraph (e)(2) of thissection, with the component atparagraph (e)(1)(i) of this section havinga weight of 5, the component atparagraph (e)(1)(ii) of this sectionhaving a weight of 3, and thecomponent at paragraph (e)(2)(ii) of thissection having a weight of 2.

(10) We will award bonuses only tothe top ten qualifying States that havefully obligated their CCDF MatchingFunds for the fiscal year correspondingto the performance year and fullyexpended their CCDF Matching Fundsfor the fiscal year preceding theperformance year.



Maritime Administration

46 CFR Part 205

[Docket No. MARAD–2000–8284]

RIN 2133–AB42

Audit Appeals; Policy and Procedure

AGENCY: Maritime Administration,Department of Transportation.ACTION: Final rule.

SUMMARY: The Maritime Administration(MARAD, we, our, or us) is updating ourregulations on Audit Appeals; Policyand Procedure. The regulationsestablish audit appeal procedures forparties who contract with the MaritimeSubsidy Board or MARAD. This finalrule uses plain language to update the

audit procedures to reflect our currentpractices. The intended effect of thisrulemaking is to improve our auditappeals process by updating andclarifying the regulations.DATES: The effective date of this finalrule is June 11, 2001.FOR FURTHER INFORMATION CONTACT: Mr.Lennis G. Fludd, Office of Financial andRate Approvals, (202) 366–2324. Youmay send mail to Mr. Fludd at MaritimeAdministration, Office of Financial andRate Approvals, Room 8117, 400Seventh Street, SW, Washington, DC20590.


BackgroundPart 205 establishes the policy and

procedure for parties to use whenseeking redress and appeals of auditdecisions involving contracts with theMaritime Subsidy Board or MARAD.Part 205 applies to contracts of theMaritime Subsidy Board and MARADwhich have included, for example, theOperating-Differential Subsidy,Construction-Differential Subsidy,Capital Construction Fund,Construction Reserve Fund, andMaritime Security Program.

We published a notice of proposedrulemaking (NPRM) on November 16,2000 at 65 FR 69279. The NPRMproposed revisions to part 205 to reflectour current practices of making auditappeals decisions. This final ruleessentially mirrors the NPRM to whichwe received no public comments.Accordingly, parties no longer appeal tothe appropriate Coast Director’s office.In the past, auditors were assigned toregional offices. However, we no longerhave these auditors. MARADheadquarters is responsible foroverseeing audits as deemedappropriate. Such audits may beperformed by the Office of InspectorGeneral. Also, as proposed, we areeliminating the discretionary hearingafforded appellants (under § 205.2 (b))when appealing to the MaritimeAdministrator. This final rule includesprovisions that give the appellant 90days from the date of receipt of theinitial audit findings to file an appealwith the appropriate AssociateAdministrator and 30 days following theAssociate Administrator’s final auditappeals decision to submit an appeal inwriting to the Administrator. However,the Administrator may, at his or herdiscretion, extend the 30 days in thecase of extenuating circumstances.

Plain LanguageExecutive Order 12866 and a

Presidential memorandum on plain

language in government writing of June1, 1998, require each agency to write allrules in plain language. The Departmentof Transportation and MARAD arecommitted to plain language ingovernment writing; therefore, werevised part 205 using plain language toprovide easier understanding. Our goalis to improve the clarity of ourregulations.

Rulemaking Analyses and Notices

Executive Order 12866 and DOTRegulatory Policies and Procedures

We have reviewed this final ruleunder Executive Order 12866 and havedetermined that this is not a significantregulatory action. Additionally, thisfinal rule is not likely to result in anannual effect on the economy of $100million or more. The purpose of thisfinal rule is to update MARAD’s auditappeals procedures to reflect currentMARAD practices and to rewrite theregulations in plain language.

This final rule is also not significantunder the Regulatory Policies andProcedures of the Department ofTransportation (44 FR 11034; February26, 1979). The costs and benefitsassociated with this rulemaking areconsidered to be so minimal that nofurther analysis is necessary. Becausethe economic impact, if any, should beminimal, further regulatory evaluationis not necessary.


This final rule will not have asignificant economic impact on asubstantial number of small entities.This final rule only updates proceduresfor appealing audit findings anddecisions to the MaritimeAdministrator. Although a number ofsmall entities may appeal auditfindings, the cost of filing an auditappeal with MARAD is minimal, if any.Therefore, MARAD certifies that thisfinal rule will not have a significanteconomic impact on a substantialnumber of small entities.

Federalism

We have analyzed this final rule inaccordance with the principles andcriteria contained in Executive Order13132 (‘‘Federalism’’) and havedetermined that it does not havesufficient federalism implications towarrant the preparation of a federalismsummary impact statement. Theseregulations have no substantial effectson the States, or on the current Federal-State relationship, or on the currentdistribution of power andresponsibilities among the various localofficials. Therefore, consultation with



State and local officials was notnecessary.

Environmental Impact Statement

We have analyzed this final rule forpurposes of compliance with theNational Environmental Policy Act of1969 (42 U.S.C. 4321 et seq.) and haveconcluded that under the categoricalexclusions provision in section 4.05 ofMaritime Administrative Order(‘‘MAO’’) 600–1, ‘‘Procedures forConsidering Environmental Impacts,’’50 FR 11606 (March 22, 1985), thepreparation of an EnvironmentalAssessment, and an EnvironmentalImpact Statement, or a Finding of NoSignificant Impact for this final rule isnot required. This final rule involvesadministrative and proceduralregulations that have no environmentalimpact.

Executive Order 13175

MARAD does not believe that thisfinal rule will significantly or uniquelyaffect the communities of Indian tribalgovernments when analyzed under theprinciples and criteria contained inExecutive Order 13175 (‘‘Consultationand Coordination with Indian TribalGovernments’’). Therefore, the fundingand consultation requirements of thisExecutive Order would not apply.

Unfunded Mandates Reform Act of 1995

This final rule does not impose anunfunded mandate under the UnfundedMandates Reform Act of 1995. It doesnot result in costs of $100 million ormore, in the aggregate, to any of thefollowing: State, local, or NativeAmerican tribal governments, or theprivate sector. This final rule is the leastburdensome alternative that achievesthe objective of the rule.


This final rule does not containinformation collection requirementscovered by 5 CFR Part 1320 (specifically5 CFR 1320.3(c)) in that appellantschoose the information to be providedin their appeal and may choose tointerpret the collection of informationdifferently.

Regulation Identifier Number (RIN)

The Department of Transportationassigns a regulation identifier number(RIN) to each regulatory action listed inthe Unified Agenda of FederalRegulations. The Regulatory InformationService Center publishes the UnifiedAgenda in April and October of eachyear. The RIN number is contained inthe heading of this document to cross-reference this action with the UnifiedAgenda.


Administrative practice andprocedure, Government contracts.

Accordingly, 46 CFR part 205 isrevised to read as follows:

PART 205—AUDIT APPEALS; POLICYAND PROCEDURE

Sec.205.1 Purpose.205.2 Policy.205.3 Procedure.205.4 Finality of decisions.205.5 Contracts containing disputes article.

Authority: Sec. 204, 49 Stat. 1987, 1998,2004, 2011; 46 U.S.C. 1114, 1155, 1176, 1212.

§ 205.1 Purpose.

This part establishes the policy andprocedure for parties to use whenseeking redress and appeals of auditdecisions involving contracts with theMaritime Subsidy Board or the MaritimeAdministration (MARAD, we, our, orus). A party to a contract (you or your)may appeal MARAD’s findings,interpretations, or decisions of annualor special audits.

§ 205.2 Policy

If you disagree with audit findingsand fail to settle any differences withthe appropriate Office Director, you mayask the appropriate office AssociateAdministrator to review the auditfindings. If you disagree with theAssociate Administrator, you mayappeal to the Maritime Administrator(Administrator).

§ 205.3 Procedure.

(a) You have 90 days from the dateyou receive the initial audit findings tofile a written request for review of theaudit findings with the appropriateAssociate Administrator. Your writtenrequest must state the legal or factualbases for your disagreement. Theappropriate Associate Administratorwill issue a written determination.

(b) You have 30 days following theAssociate Administrator’s final auditdetermination to submit your appeal inwriting to the Administrator. Yourwritten appeal must set forth the legaland factual bases for your appeal. TheAdministrator may, at his or herdiscretion, extend the time limitation inthe case of extenuating circumstances.

(c) We will notify you, in writing, ifyou must submit additional facts for ourconsideration of the appeal. We willnotify you, in writing, once theAdministrator has made a decisionregarding your appeal.

§ 205.4 Finality of decisions.

The Administrator’s decision will bethe final administrative action on allaudit appeals.

§ 205.5 Contracts containing disputesarticle.

When a contract contains a disputesarticle, the disputes article will governthe bases for negotiating disputesregarding audit findings, interpretations,or decisions made by MARAD and anyappeals.

Dated: May 2, 2001.By Order of the Acting Deputy Maritime

Administrator.Joel C. Richard,Secretary, Maritime Administration.[FR Doc. 01–11578 Filed 5–9–01; 8:45 am]BILLING CODE 4910–81–P

FEDERAL COMMUNICATIONSCOMMISSION

47 CFR PART 73

[MM Docket No. 99–25; FCC 01–100]

Creation of a Low Power Radio Service

AGENCY: Federal CommunicationsCommissionACTION: Final rule.

SUMMARY: This document amends ourLow Power Radio Service (‘‘LPFM’’)regulations to implement section 632(a)of the ‘‘Making Appropriations for theGovernment of the District of Columbiafor FY 2001’’ Act (the ‘‘Act’’).Specifically, the Second Report andOrder codifies the Act’s requirementsthat the Commission prescribe LPFMstation third adjacent channelinterference protection standards andprohibit the grant of an LPFM stationlicense if the applicant has engaged inthe unlicensed operation of a station inviolation of section 301 of theCommunications Act of 1934, asamended. This document also definesthe scope of permissible minoramendments that may be filed by LPFMapplicants outside window filingperiods.

DATES: Effective June 11, 2001.FOR FURTHER INFORMATION CONTACT:Peter Doyle, Federal CommunicationsCommission, Mass Media Bureau,Audio Services Division, 445 12 Street,SW., Washington, DC 20554 (202) 418–2700, Internet address: [email protected] INFORMATION: This is asynopsis of the Commission’s SecondReport and Order, adopted March 22,2001, and released April 2, 2001. Thecomplete text of the Second Report and



1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601, hasbeen amended by the Contract with AmericaAdvancement Act of 1996, Public Law No. 104–121,110 Stat. 847 (1996) (‘‘CWAAA’’). Title II of theCWAAA is the Small Business RegulatoryEnforcement Fairness Act of 1996 (‘‘SBREFA’’).

Order is available for inspection andcopying during normal business hoursin the FCC Reference Center (Room CY–A257), 445 12 Street, SW., Washington,DC, and also may be purchased from theCommission’s copy contractor,International Transcription Service,(202) 857–3800, 1231 20th Street, NW.,Washington, DC 20036. TheCommission believes that these actionsare exempt from the notice andcomment requirements of section 553 ofthe Administrative Procedure Act, andthat the minor amendment rule is a ruleof procedure to which notice andcomment requirements are inapplicable.

Synopsis of Order1. With this Second Report and Order,

the Commission implements the Act’srequirement that the Commissionprescribe LPFM station third adjacentchannel interference protectionstandards. We accomplish thisrequirement by including in our rulesminimum distance separations whichLPFM applicants must meet withrespect to full power FM and FMtranslator stations on third adjacentchannels. We also, in accordance withthe Act, prohibit any applicant fromobtaining an LPFM station license if theapplicant has engaged in the unlicensedoperation of a station in violation ofsection 301 of the Communications Actof 1934, as amended.

2. The third adjacent channelprotection standards affect 652otherwise technically acceptable LPFMapplications that were filed in the firsttwo LPFM filing windows, renderingthem short-spaced to existing full powerFM and/or FM translator stationsoperating on third adjacent channels.Under well-established processingpolicies, only minor amendments maybe filed outside the window period.Although the LPFM rules define thepermissible scope of minor changes inauthorized facilities, they do not definethe scope of minor amendments topending applications, an issue nowcritical to the large group of newlyshort-spaced applicants. The SecondReport and Order adds new rule§ 73.871 to permit LP100 applicants tofile minor change technicalamendments for site relocations of lessthan two kilometers and to permit LP10applicants to file minor changetechnical amendments for siterelocations of less than one kilometer.Section 73.871 will permit the filingafter the close of the pertinent filingwindow of non-technical minoramendments that do not improve anapplicant’s comparative position.Amendments adversely affecting anapplicant’s comparative position will be

accepted and considered as part of themutually exclusive application selectionprocedures. Ownership amendmentswill be limited to changes where theoriginal parties to an application retainmore than a fifty percent ownershipinterest in the application as originallyfiled.

3. Applications impacted by the newthird adjacent channel spacingrequirements are listed in Appendices Aand B of the Second Report and Order.Appendix A lists those applicationswhich involve short spacings of lessthan two kilometers. These applicantsmay be able to file minor amendmentsto eliminate the prohibited shortspacings. The staff is prepared to assist,if requested, each of these applicants todetermine whether a feasible site existswhich would meet both theCommission’s distance separationrequirements and the applicant’s serviceneeds. Curative minor amendments (siterelocations of less than two kilometers)must be filed within thirty days of thepublication of this Summary in theFederal Register. Appendix B lists thoseapplications that have third adjacentshort spacings of two or morekilometers. These cannot be cured bypermissible minor amendments filedoutside an LPFM window. TheCommission therefore directs the staff toopen an additional remedial filingwindow following the completion of thecurrently scheduled window process forthose applicants listed in Appendices Aand B. We will retain these applicationsin pending status. The remedial filingwindow will provide these applicationswith the opportunity to submit majoramendments specifying technicalfacilities that meet the new spacingrequirements.

4. Appendix C of the Second Reportand Order lists those LPFM applicationsthat stated that either the applicant and/or any party to the application engagedin the unlicensed operation of anystation in violation of section 301 of theCommunications Act of 1934, asamended. Prior to the Second Reportand Order, the Commission’s rulespermitted the grant of an LPFM stationapplication if the party engaged inillegal broadcast operations but certifiedthat it ceased such unlicensedoperations within 24 hours of aCommission directive to do so or, in thealternative, that it voluntarily ceasedengaging in such operations if nodirective was issued no later thanFebruary 26, 1999. The Second Reportand Order modifies § 73.854 of theLPFM rules and instructs the staff tomodify FCC Form 318 to conform thestatutory language prohibiting anyapplicant from obtaining an LPFM

license if the applicant engaged in anymanner in the unlicensed operation ofany station in violation of section 301 ofthe Communications Act of 1934, asamended. All applications responding‘‘No’’ to FCC Form 318, Section III,Question 8(a) will be dismissed.

5. The Commission does not believethat the notice and commentrequirements of section 553 of theAdministrative Procedure Act (‘‘APA’’)apply to the rule revisions adoptedherein. We find that the amendments ofthe interference protection andunlicensed operations rules are exemptfrom notice and comment under theAPA’s ‘‘good cause’’ exemption. Thethird adjacent channel protectionrequirements adopted were proposed inthe LPFM NPRM, are consistent withcurrent full power FM station thirdadjacent channel protection levels, andimplement a Congressional requirement.Amendment of the unlicensed operationrule is a non-discretionary actioncodifying a Congressional requirement.The minor amendment rule is one ofprocedure to which notice and commentrequirements are inapplicable.

Supplemental Final RegulatoryFlexibility Analysis

The Regulatory Flexibility Act(‘‘RFA’’) 1 requires that an agencyprepare a regulatory flexibility analysisfor notice-and-comment rulemakingproceedings. In the Notice of ProposedRulemaking, Report and Order, andMemorandum Opinion and Order, theCommission included, respectively, anInitial Regulatory Flexibility Analysis,Final Regulatory Flexibility Analysis,and Supplemental Final RegulatoryFlexibility Analysis. Creation of LowPower Radio Service, MM Docket No.99–25, Notice of Proposed Rule Making,64 FR 7577 (February 16, 1999), 14 FCCRcd 2471 (1999); Report and Order, 65FR 7616 (February 15, 2000), 15 FCCRcd 2205 (2000); Memorandum Opinionand Order, 65 FR 67289 (November 9,2000), l FCC Rcd l (2000). In thisOrder, however, the rule changesadopted on our own motion in responseto the Act’s mandate do not require aregulatory flexibility analysis.

Minimizing Impact on Small BusinessLPFM Applicants

LP100 and LP10 stations will benoncommercial, educational stations,and so will not compete with small



business commercial broadcasters foradvertising revenue.

Need For and Objectives of theMemorandum Opinion and Order

In the Report and Order, theCommission established technicalstandards based on minimum distancerequirements to co-channel, first andsecond-adjacent channel, and IFchannel spacings to full power FM andFM translator stations, and co-channeland first adjacent channel spacings toother LPFM stations. The Report andOrder also provided to a limited extentthat applicants previously engaging inunlicensed operations in violation ofsection 301 of the Communications Actof 1934, as amended, would be able toreceive grant of their applications. TheAct modifies the Commission’s priorapproach, requiring that the LPFM rulesbe expanded to provide protection tothird adjacent channel full power FMand FM translator stations and that therules be modified to reject any relief toapplicants previously in violation of theunlicensed station provisions of section301 of the Communications Act.

Significant Alternative Considered

The Commission considered analternative to its rule governing theamendment of pending LPFMapplications that such applicants bepermitted to amend their technicalproposals to specify a different channelthat might resolve conflicts with co andfirst adjacent channel LPFM new stationapplications filed in the same filingwindow. This alternative was rejectedin the interest of administrativeorderliness. The expeditious processingof the hundreds of applications filed inthe initial LPFM windows requires arelatively fixed database of technicalproposals. Providing the opportunity toamend to different channels after theclose of a window makes staffdeterminations of mutual exclusivityand the administration of the selectionprocedure for these applicationsinherently subject to duplicativereevaluations.

Report to Congress

The Commission will send a copy ofthe Second Report and Order toCongress pursuant to the CongressionalReview Act. See 5 U.S.C. 801(a)(1)(A).In addition, the Commission will senda copy of this Second Report and Order,to the Chief Counsel for Advocacy of theSmall Business Administration. A copyof the Second Order and Order (orsummary thereof) will also be publishedin the Federal Register pursuant to 5U.S.C. 604(b).

List of Subjects in 47 CFR Parts 73

Radio broadcasting.Federal Communications CommissionMagalie Roman Salas,Secretary.

Regulatory Text

For the reasons discussed in thepreamble, the Federal CommunicationsCommission amends 47 CFR part 73 asfollows:

PART 73—RADIO BROADCASTSERVICES


Authority: 47 U.S.C. 154, 303, 334, 336.

2. Section 73.807 is amended byrevising the last sentence in theintroductory text as set forth and byrevising the fourth column headings ofthe tables in paragraphs (a), (b), (c), and(d) which previously read ‘‘Second-adjacent channel minimum separation(km) required’’ to read ‘‘Second- andthird-adjacent channel minimumseparation (km) required.’’

§ 73.807 Minimum distance separationbetween stations.

* * * For second- and third-adjacentchannels and IF channels, the requiredminimum distance separation issufficient to avoid interference receivedfrom other stations.* * * * *

3. Section 73.854 is revised to read asfollows:

§ 73.854 Unlicensed operations.

No application for an LPFM stationmay be granted unless the applicantcertifies, under penalty of perjury, thatneither the applicant, nor any party tothe application, has engaged in anymanner including individually or withpersons, groups, organizations or otherentities, in the unlicensed operation ofany station in violation of Section 301of the Communications Act of 1934, asamended, 47 U.S.C. 301.

4. Add § 73.871 to subpart G to readas follows:

§ 73.871 Amendment of LPFM broadcaststation applications.

(a) New and major changeapplications may be amended withoutlimitation during the pertinent filingwindow.

(b) Amendments that would improvethe comparative position of new andmajor change applications will not beaccepted after the close of the pertinentfiling window.

(c) Only minor amendments to newand major change applications will beaccepted after the close of the pertinentfiling window. Subject to the provisionsof this section, such amendments maybe filed as a matter of right by the datespecified in the FCC’s Public Noticeannouncing the acceptance of suchapplications. For the purposes of thissection, minor amendments are limitedto:

(1) Site relocations of less than onekilometer for LP10 stations;

(2) Site relocations of less than twokilometers for LP100 stations;

(3) Changes in ownership where theoriginal party or parties to anapplication retain more than a 50percent ownership interest in theapplication as originally filed; and

(4) Other changes in general and/orlegal information.

(d) Unauthorized or untimelyamendments are subject to return by theFCC’s staff without consideration.



This section of the FEDERAL REGISTERcontains notices to the public of the proposedissuance of rules and regulations. Thepurpose of these notices is to give interestedpersons an opportunity to participate in therule making prior to the adoption of the finalrules.

Proposed Rules Federal Register

23864

Vol. 66, No. 91


FEDERAL HOUSING FINANCE BOARD

12 CFR Part 951

[No. 2001–08]

RIN 3069–AB04

Affordable Housing ProgramAmendments

AGENCY: Federal Housing FinanceBoard.ACTION: Proposed rule.

SUMMARY: The Federal Housing FinanceBoard (Finance Board) is proposing toamend its regulation governing theoperation of the Affordable HousingProgram (AHP) to improve the operationand effectiveness of the AHP. Theproposed changes include: increasingthe maximum amount of money thatmay be set aside annually, in theaggregate, under a Federal Home LoanBank’s (Bank) homeownership set-asideprograms to the greater of $3.0 millionor 25 percent of the Bank’s annualrequired AHP contribution; removingone of the criteria for use ofhomeownership set-aside funds to payfor counseling costs in order to equalizethe criteria with that of the competitiveAHP application program; permittingmembers drawn from community andnot-for-profit organizations activelyinvolved in providing or promotingcommunity lending in a Bank’s Districtto serve on the Bank’s AdvisoryCouncil; making the reconciliation ofAHP fund requirements applicable toany reduction or increase in the amountof AHP subsidy approved for a project,regardless of whether a direct subsidywritedown is involved; removing therequirement for annual project sponsorcertifications on household incomeeligibility for owner-occupied projects;and removing the requirement formember certifications on habitabilityand tenant income and rent targetingcommitments within the first year ofcompletion of a rental project.DATES: The Finance Board will acceptwritten comments on the proposed rule

that are received on or before June 11,2001.

ADDRESSES: Send written comments to:Elaine L. Baker, Secretary to the Board,at the Federal Housing Finance Board,1777 F Street, NW., Washington, DC20006. Comments will be available forinspection at this address.

FOR FURTHER INFORMATION CONTACT:Charles E. McLean, Deputy Director,(202) 408–2537, Melissa L. Allen,Program Analyst, (202) 408–2524, Officeof Policy, Research and Analysis; orSharon B. Like, Senior Attorney-Advisor, (202) 408–2930, Office ofGeneral Counsel, Federal HousingFinance Board, 1777 F Street, NW.,Washington, DC 20006.


I. Statutory and Regulatory Background

Section 10(j)(1) of the Federal HomeLoan Bank Act (Bank Act) requires eachBank to establish a program to subsidizethe interest rate on advances tomembers of the Bank System engaged inlending for long-term, low- andmoderate-income, owner-occupied andaffordable rental housing at subsidizedinterest rates. See 12 U.S.C. 1430(j)(1).The Finance Board is required topromulgate regulations governing theAHP. See id. The Finance Board’sexisting regulation governing theoperation of the AHP, which madecomprehensive revisions to the AHP,was adopted in August 1997 andbecame effective January 1, 1998. See 62FR 41812 (Aug. 4, 1997) (now codifiedat 12 CFR part 951).

Various amendments have been madeto the AHP regulation since 1998 inorder to clarify AHP requirements andimprove the operation and effectivenessof the AHP. The Banks and FinanceBoard staff have, over the course ofimplementation of the AHP, identifiedadditional amendments that it isbelieved would improve the operationand effectiveness of the AHP. Theproposed amendments are discussedfurther below. The Finance Boardwelcomes written comments on allaspects of the proposed rule.

II. Analysis of Proposed Rule

A. Homeownership Set-AsidePrograms—§§ 951.3(a), 951.5(a)(7)(iii)

1. Increase in Maximum AllowableAnnual Homeownership Set-AsideAmount—§ 951.3(a)

Section 951.3(a)(1) of the existingAHP regulation provides that eachBank, after consultation with itsAdvisory Council, may set asideannually, in the aggregate, up to thegreater of $1.5 million or 15 percent ofits annual required AHP contribution toprovide funds to members participatingin the Bank’s homeownership set-asideprograms. 12 CFR 951.3(a)(1). In caseswhere the amount of homeownershipset-aside funds applied for by membersin a given year exceeds the amountavailable for that year, a Bank mayallocate up to the greater of $1.5 millionor 15 percent of its annual required AHPcontribution for the subsequent year tothe current year’s homeownership set-aside programs. Id.

The AHP homeownership set-asideprograms have proven to be an efficientand effective means for the Banks andtheir members to providehomeownership opportunities for low-and moderate-income households,consistent with the goals of the BankSystem and the AHP. Ten Bankscurrently offer homeownership set-asideprograms, eight of which set aside themaximum amount allowable under thecurrent AHP regulation.

Experience with the homeownershipset-aside programs over the past twoyears has shown that the demand forhomeownership set-aside funds for low-and moderate-income families is suchthat an increase in the maximumallowable annual homeownership set-aside amount is warranted. The Bankshave demonstrated that there is marketdemand and member demand forfinancing for low- and moderate-incomehomeownership, with mosthomeownership set-aside programsbeing oversubscribed within the firstthree to seven months of the year. In2000, the Finance Board approved awaiver request from one Bank toincrease its maximum allowablehomeownership set-aside amount to 25percent of its total annual AHPcontribution, a similar waiver requestfor 2001 is pending, and additionalwaiver requests of a similar nature fromother Banks are anticipated.

VerDate 11<MAY>2000 09:44 May 09, 2001 Jkt 194001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\10MYP1.SGM pfrm01 PsN: 10MYP1

23865Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Proposed Rules

The homeownership set-asideprograms also are consistent with thecooperative structure of the BankSystem, by involving members infinancing the mortgages of low- andmoderate-income households receivingdownpayment assistance withhomeownership set-aside funds. Thehomeownership set-aside programs canprovide an important Bank service formembers by enabling a greater numberof members to become involved in theAHP, by helping members to establishbanking relationships with newcustomers, and by exposing moremembers to opportunities to help meetlow- and moderate-income housingneeds in their markets.

The homeownership set-asideprograms also are consistent with thegoals of the Bank System and the AHPto help finance affordable housing inunderserved areas and for underservedhouseholds. Homeownership set-asidefunds often are the only way toeffectively meet scattered-site,affordable housing needs in rural areasor tribal areas, which have difficultyscoring well under the competitive AHPapplication program and where rentalprojects are not feasible. In addition,homeownership set-aside funds oftenare the only way to meet the need forhomeownership opportunities for verylow-income families, which requirelarger per-unit subsidies and, therefore,may not score well under thecompetitive AHP application program.Homeownership set-aside programs alsoallow a member to use AHP funds tofinance housing for individual eligiblehouseholds on an as-needed basis, evenif it is only for one household in themember’s market area. These arehouseholds that the competitive AHPapplication program might nototherwise reach.

The decision whether or not toestablish homeownership set-asideprograms is within the discretion ofeach Bank. Thus, a Bank, inconsultation with its Advisory Council,may decide not to establishhomeownership set-aside programs if itdetermines that such programs areinappropriate for its district, or, if aBank decides to establish suchprograms, it need not allocate to theprograms the maximum amountallowable under the regulation.

Accordingly, for the reasonsdiscussed above, the proposed rulewould revise § 951.3(a)(1) to allow aBank, after consultation with itsAdvisory Council, to set aside annually,in the aggregate, up to the greater of $3.0million or 25 percent of its annualrequired AHP contribution for itshomeownership set-aside programs. In

addition, in cases where the amount ofhomeownership set-aside funds appliedfor by members in a given year exceedsthe amount available for that year, theproposed rule would allow a Bank toallocate up to the greater of $3.0 millionor 25 percent of its annual required AHPcontribution for the subsequent year tothe current year’s homeownership set-aside programs.

A higher allowable annualhomeownership set-aside amountincreases the possibility that demand forsuch funds may not exhaust theavailable funds by the end of the year.Under section 10(j)(7) of the Bank Act,90 percent of such uncommitted orunused AHP funds generally would berequired to be deposited by the Bank inan Affordable Housing Reserve Fundestablished and administered by theFinance Board. See 12 U.S.C. 1430(j)(7);12 CFR 951.15(a). No such ReserveFund has been established to date. Inorder to minimize the possibility ofhaving to create such a Reserve Fund,the proposed rule would provide in§ 951.3(a) that any homeownership set-aside funds that are not committed orused by the end of the year in whichthey were set aside shall be committedor used by the end of such year to fundproject modifications or the next highestscoring AHP applications in the Bank’sfinal funding period of the year for itscompetitive AHP application program.

The proposed rule also would providethat, beginning in 2002 and forsubsequent years, the maximumhomeownership set-aside dollar limitsshall be adjusted annually by theFinance Board to reflect any percentageincrease in the preceding year’sConsumer Price Index (CPI) for all urbanconsumers, as published by theDepartment of Labor. Each year, as soonas practicable after the publication ofthe previous year’s CPI, the FinanceBoard would be required to publishnotice by Federal Register, distributionof a memorandum, or otherwise, of theCPI-adjusted limits on the maximumset-aside dollar amount.

2. Removal of Criterion For Funding ofCounseling Costs—§ 951.5(a)(7)(iii)

Section 951.5(a)(7) of the existingAHP regulation provides thathomeownership set-aside funds may beused to pay for counseling costs onlywhere:

(i) Such costs are incurred inconnection with counseling ofhomebuyers who actually purchase anAHP-assisted unit;

(ii) The cost of the counseling has notbeen covered by another funding source,including the member; and

(iii) The homeownership set-asidefunds are used to pay only for theamount of such reasonable andcustomary costs that exceeds the highestamount the member has spent annuallyon homebuyer counseling costs withinthe preceding three years. 12 CFR951.5(a)(7).

By contrast, § 951.5(b)(5) of theexisting AHP regulation requiressatisfaction of only the first two of theabove three criteria in authorizing theuse of AHP subsidies to pay forcounseling costs under the competitiveAHP application program. 12 CFR951.5(b)(5). The Banks maintain that thecriterion in paragraph (a)(7)(iii) aboveshould be removed so that the criteriaapplicable to the use of AHP funds forcounseling costs are the same underboth the homeownership set-aside andcompetitive AHP application programs.

The criterion in paragraph (a)(7)(iii)was intended to preventhomeownership set-aside funds frombeing used to pay for counseling coststhat, in the absence of such funds,customarily would be funded bymembers participating in ahomeownership set-aside program. Inthis way, AHP funds would be used toexpand the pool of resources availableto pay for counseling costs, rather thansimply replace existing sources offunding for counseling costs.

The Banks maintain that thisrequirement is difficult and costly toenforce. Moreover, the requirement mayactually reduce potential participationby members in homeownership set-aside programs because of members’concerns about liability if theaccounting for costs is not accurate. Inaddition, since the competitive AHPapplication program does not have acomparable requirement, it is possiblethat AHP subsidies are already beingused under that program to pay forcounseling costs that the member,sponsor or another funding sourcewould otherwise have funded.

The Finance Board recognizes thathomebuyer counseling is vital toensuring that AHP subsidies are usedsuccessfully to provide homeownershipopportunities for low- and moderate-income households. The Finance Boardis persuaded that assurance thathomebuyers will get such counseling,regardless of how it is funded,outweighs concerns that AHP subsidiesmay be funding counseling costs thatwould otherwise be paid for by anotherfunding source. Accordingly, for thereasons discussed above, the proposedrule would remove the additionalhomeownership set-aside counselingcriterion contained in § 951.5(a)(7)(iii).


23866 Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Proposed Rules

1 Section 940.2 states that ‘‘[t]he mission of theBanks is to provide to their members and associatesfinancial products and services, including but notlimited to advances, that assist and enhance suchmembers’ and associates’ financing of:

(a) Housing, including single-family and multi-family housing serving consumers at all incomelevels; and

(b) Community lending.’’12 CFR 940.2 (emphasis added).

B. Advisory Council Membership—§ 951.4

Section 951.4(f) of the existing AHPregulation uses two terms—‘‘communityinvestment’’ and ‘‘communitydevelopment’’—in describing the role ofthe Advisory Councils in this area.Specifically, § 951.4(f)(1) provides thatrepresentatives of the board of directorsof each Bank shall meet with theAdvisory Council at least quarterly toobtain the Advisory Council’s advice onways in which the Bank can better carryout its housing finance and communityinvestment mission, including adviceon the low- and moderate-incomehousing and community investmentprograms and needs in the Bank’sDistrict. Section 951.4(f)(3) providesthat each Advisory Council shall submitto the Finance Board annually by March1 its analysis of the low- and moderate-income housing and communitydevelopment activity of the Bank bywhich it is appointed.

The proposed rule would replace theterms community investment andcommunity development, wherever theyappear, with the term communitylending, which encompasses both termsand is the term used in the FinanceBoard’s recently adopted missionstatement for the Banks. See 12 CFR940.2.1 Community lending is definedin part 900 of the Finance Board’sexisting regulations as ‘‘providingfinancing for economic developmentprojects for targeted beneficiaries, and,for community financial institutions,purchasing or funding small businessloans, small farm loans or small agri-business loans, as defined in § 950.1 ofthis chapter.’’ 12 CFR 900.1.

In addition, since the AdvisoryCouncils are required to give advice oncommunity lending, as well as housingfinance, matters, the proposed rulewould revise § 951.4(a) to provide thatmembers may be drawn fromcommunity and not-for-profitorganizations actively involved inproviding or promoting communitylending in the Bank’s District, andwould revise § 951.4(b) to provide that,in appointing Advisory Councilmembers, a Bank may giveconsideration to the diversity ofcommunity lending needs and activitieswithin the Bank’s District.

C. Reconciliation of AHP Fund—§ 951.8(c)(3)(ii)

Section 951.8(c)(3)(ii) of the existingAHP regulation provides that if a Bankreduces the amount of AHP subsidyapproved for a project, the amount ofsuch reduction shall be returned to theBank’s AHP fund. 12 CFR 951.8(c)(3)(ii).Section 951.8(c)(3)(ii) further providesthat if a Bank increases the amount ofAHP subsidy approved for a project, theamount of such increase shall be drawnfirst from any currently uncommitted orrepaid AHP subsidies and then from theBank’s required AHP contribution forthe next year. Id. This section isincluded under the overall heading forparagraph (c)(3), which addresseschanges in the approved AHP subsidyamount where a direct subsidy is usedto write down prior to closing theprincipal amount or interest rate on aloan. Therefore, the requirements inparagraph (c)(3)(ii) would appear toapply only in cases where a directsubsidy is used to write down prior toclosing the principal amount or interestrate on a loan.

In practice, the Banks have returnedto the AHP fund the amount of anyreduction in AHP subsidy approved fora project under the competitive AHPapplication program, regardless of thereason for the reduction, such as aproject modification or a change in aproject’s sources and uses of funds. Thequestion has arisen whether theprovision in paragraph (c)(3)(ii)regarding the funding of a subsidyincrease should apply to an increase inapproved AHP subsidy for a projectmodification that does not involve adirect subsidy writedown. A Bank hasindicated that, in its district, demand forincreases in approved AHP subsidies forproject modifications not involvingdirect subsidy writedowns is nowexceeding the amount of repaid or de-committed AHP subsidies available tofund such modifications. Therefore, theBank would like to be able to fund suchsubsidy increases from the Bank’srequired AHP contribution for the nextyear.

If a Bank is permitted to useuncommitted AHP funds from thefollowing year, before such funds aremade available under the competitiveAHP application program for that year,there will be fewer AHP funds availablefor new projects to be approved underthe competitive AHP applicationprogram for that year. However, theoverall effect on the amount of AHPfunds available for the following year isnot likely to be significant. Moreover,funding a new project in the next year,as opposed to funding a modification of

an existing project from a prior year,would not necessarily result inproducing more affordable housing, asthere is no assurance that the newproject ultimately will go forward. It isimportant that AHP funding be madeavailable for modifications of existingprojects that are meeting the goals of theAHP. The ability of an approved projectto continue arguably should not bejeopardized simply becauseuncommitted AHP funds are notavailable for modifications in thecurrent year. Since the existing AHPregulation already allows the Banks tocommit funds from the following year’shomeownership set-aside allocation tofund current year needs under theBanks’ homeownership set-asideprograms, the Banks arguably shouldhave similar flexibility in fundingsubsidy increases for projectmodifications approved under thecompetitive AHP application program.Finally, the decision whether to approvean increase in AHP subsidy for a projectmodification is within the discretion ofeach Bank. See 12 CFR 951.7. If a Bankdoes not want to fund projectmodifications with subsidies from thenext year’s AHP allocation, it does nothave to approve the projectmodifications.

Accordingly, for the reasonsdiscussed above, the proposed rulewould make § 951.8(c)(3)(ii) applicableto any reduction or increase in theamount of AHP subsidy approved for aproject, regardless of whether a directsubsidy writedown is involved, byredesignating this paragraph as§ 951.8(c)(4). The Banks, therefore,would be able to fund subsidy increasesfor project modifications using subsidiesdrawn first from any currentlyuncommitted or repaid AHP subsidies,and then from the Bank’s required AHPcontribution for the next year.

D. Initial Monitoring Requirements—§ 951.10

1. Owner-Occupied Project SponsorAnnual Certifications—§ 951.10(a)(1)(ii)

Section 951.10(a)(1)(ii) of the existingAHP regulation provides that whereAHP subsidies are used to finance thepurchase of owner-occupied units, theproject sponsor must certify annually tothe member and the Bank, until allapproved AHP subsidies are provided toeligible households in the project, thatthose households receiving AHPsubsidies during the year were eligiblehouseholds, and such certificationsshall be supported by household incomeverification documentation maintainedby the project sponsor and available for



review by the member or the Bank. 12CFR 951.10(a)(1)(ii).

The Banks maintain that this projectsponsor certification requirement is notnecessary because the certificationmerely reiterates more extensivedocumentation of income eligibilitypreviously provided by the projectsponsor to the Bank and member at thetime of each request for disbursement ofAHP funds from the Bank. Under theexisting AHP regulation, a Bank isrequired to verify prior to eachdisbursement of AHP subsidies for anapproved project that the project meetsthe eligibility requirements of § 951.5(b)and all obligations committed to in theapproved AHP application. See 12 CFR951.5(b), 951.8(c)(2). Because the projectsponsor’s annual certification is basedon the information provided to the Bankat the time of disbursement requests, thecertification requirement in§ 951.10(a)(1)(ii) does not add any newinformation or independent verificationto the monitoring process.

Accordingly, for the reasonsdiscussed above, the proposed rulewould remove the project sponsorcertification requirement from§ 951.10(a)(1)(ii).

Section 951.10(b)(1)(ii) of the existingAHP regulation also requires themember, within one year afterdisbursement to a project of allapproved AHP subsidies, to review theproject documentation and makecertifications to the Bank on the use ofthe AHP subsidies and the existence ofdeed restrictions or other legallyenforceable retention agreements andmechanisms. See 12 CFR951.10(b)(1)(ii). Section 951.10(c)(1) ofthe existing AHP regulation requireseach Bank to review the documentationfor a sample of projects and units todetermine income-eligibility, eligibleuses, reasonable and customary costs,financial feasibility and the existence ofdeed restrictions or other legallyenforceable retention agreements ormechanisms. See 12 CFR 951.10(c)(1).

Therefore, in order for the memberand Bank to be able to continuereviewing project documentationpursuant to these sections, the proposedrule would retain the requirement in§ 951.10(a)(1)(ii) that the project sponsormaintain household income verificationdocumentation available for review bythe member or the Bank.

2. Member Certification Within the FirstYear of Rental Project Completion—§ 951.10(b)(2)(ii)

Section 951.10(b)(2)(ii) of the existingAHP regulation provides that within thefirst year after completion of an AHP-assisted rental project, the member must

review the project documentation andmake a certification to the Bank onproject habitability, and tenant rentsand income targeting commitments. See12 CFR 951.10(b)(2)(ii). The Banksmaintain that this member certificationrequirement is essentially redundantwith the requirement in§ 951.10(a)(2)(ii) that the owners ofrental projects make a certification tothe member on the same items. See 12CFR 951.10(a)(2)(ii).

Since the member is essentiallyduplicating the certification alreadymade by the project owner, and theproject owner is also certifying to theBank, it seems reasonable to eliminatethe member certification requirementand simply retain the project ownercertification to the Bank. Accordingly,the proposed rule would remove themember certification requirement of§ 951.10(b)(2)(ii), as well as thereferences to the member contained in§ 951.10(a)(2)(ii).

III. Paperwork Reduction ActThe current information collection

contained in the existing AHPregulation has been approved by theOffice of Management and Budget(OMB) and assigned OMB controlnumber 3069–0006, with an expirationdate of January 31, 2003. The FinanceBoard has submitted to OMB for itsapproval an analysis of the proposedrevisions to the collection ofinformation contained in §§ 951.3(a)(1),951.10(a)(1)(ii), and 951.10(b)(2)(ii) ofthe proposed rule, described more fullyin part II of the SUPPLEMENTARYINFORMATION. The proposed increase inthe maximum allowable annualhomeownership set-aside amount under§ 951.3(a)(1) of the proposed rule isexpected to result in an increase inapplications for such funds. Theproposed elimination of the projectsponsor and member certificationrequirements in §§ 951.10(a)(1)(ii) and951.10(b)(2)(ii) of the proposed rulewould reduce the information collectionrequirement for such parties. The Banksuse the information collection in theAHP regulation to determine whetherrespondents satisfy statutory andregulatory requirements under the AHP.Responses are mandatory and arerequired to obtain or retain a benefit.See 12 U.S.C. 1426.

Likely respondents and/or recordkeepers are Banks, Bank members,project sponsors, and project owners.Potential respondents are not requiredto respond to the collection ofinformation unless the regulationcollecting the information displays acurrently valid control number assignedby OMB. See 44 U.S.C. 3512(a).

The estimated annual reporting andrecordkeeping hour burden for the AHPregulation with the proposed changes is:

a. Number of respondents—7,720b. Total annual responses—10,749Percentage of these responses collected

electronically—0c. Total annual hours requested—65,461d. Current OMB inventory—64,274e. Difference—1,187

The estimated annual reporting andrecordkeeping cost burden for the AHPregulation with the proposed changes is:

a. Total annualized capital/startup costs—0

b. Total annual costs (O&M)—0c. Total annualized cost requested—

$2,169,795d. Current OMB inventory—$2,118,170e. Difference—$51,625

The Finance Board will accept writtencomments concerning the accuracy ofthe burden estimates and suggestions forreducing the burden at the addresslisted above.

Comments regarding the proposedcollection of information may besubmitted in writing to the Office ofInformation and Regulatory Affairs ofOMB, Attention: Desk Officer forFederal Housing Finance Board,Washington, DC 20503 by July 9, 2001.

IV. Regulatory Flexibility ActThe proposed rule would apply only

to the Banks, which do not come withinthe meaning of ‘‘small entities,’’ asdefined in the Regulatory Flexibility Act(RFA). See 5 U.S.C. 601(6). Thus, inaccordance with section 605(b) of theRFA, 5 U.S.C. 605(b), the Finance Boardhereby certifies that the proposed rule,if promulgated as a final rule, will nothave a significant economic impact ona substantial number of small entities.

List of Subjects in 12 CFR Part 951Community development, Credit,

Federal home loan banks, Housing,Reporting and recordkeepingrequirements.

Accordingly, the Finance Boardhereby proposes to amend part 951, title12, chapter IX, Code of FederalRegulations, as follows:

PART 951—AFFORDABLE HOUSINGPROGRAM


Authority: 12 U.S.C. 1430(j).

2. Amend § 951.3(a)(1) to read asfollows:

§ 951.3 Operation of Program andadoption of AHP implementation plan.

(a) Allocation of AHP contributions—(1) Homeownership set-aside programs.



Each Bank, after consultation with itsAdvisory Council, may set asideannually, in the aggregate, up to thegreater of $3.0 million or 25 percent ofits annual required AHP contribution toprovide funds to members participatingin the Bank’s homeownership set-asideprograms, pursuant to the requirementsof this part. Any homeownership set-aside funds that are not committed orused by the end of the year in whichthey were set aside shall be committedor used by the end of such year to fundproject modifications or the next highestscoring AHP applications in the Bank’sfinal funding period of the year for itscompetitive application program. Incases where the amount ofhomeownership set-aside funds appliedfor by members in a given year exceedsthe amount available for that year, aBank may allocate up to the greater of$3.0 million or 25 percent of its annualrequired AHP contribution for thesubsequent year to the current year’shomeownership set-aside programspursuant to written policies adopted bythe Bank’s board of directors. Beginningin 2002 and for subsequent years, themaximum dollar limits set forth in thisparagraph shall be adjusted annually bythe Finance Board to reflect anypercentage increase in the precedingyear’s Consumer Price Index (CPI) for allurban consumers, as published by theDepartment of Labor. Each year, as soonas practicable after the publication ofthe previous year’s CPI, the FinanceBoard shall publish notice by FederalRegister, distribution of amemorandum, or otherwise, of the CPI-adjusted limits on the maximum set-aside dollar amount. A Bank mayestablish one or more homeownershipset-aside programs pursuant to writtenpolicies adopted by the Bank’s board ofdirectors. A Bank’s board of directorsshall not delegate to Bank officers orother Bank employees the responsibilityfor adopting such policies.* * * * *

§ 951.4 [Amended]3. Amend § 951.4 by:a. In paragraph (a), adding ‘‘and/or

community lending’’ after ‘‘housing’’;b. In paragraph (b), adding ‘‘and/or

community lending’’ after ‘‘housing’’;c. In paragraph (f)(1), removing

‘‘community investment’’ wherever itappears and adding, in its place,‘‘community lending’’; and

d. In paragraph (f)(3), removing‘‘community development’’ and adding,in its place, ‘‘community lending’’.

§ 951.5 [Amended]4. Amend § 951.5 by removing

paragraph (a)(7)(iii).

§ 951.8 [Amended]5. Amend § 951.8(c)(3) by:a. Removing the heading for

paragraph (c)(3)(i);b. Removing paragraph designation

(c)(3)(i); andc. Redesignating paragraph (c)(3)(ii) as

paragraph (c)(4).6. Amend § 951.10 by:a. Revising paragraph (a)(1)(ii);b. In paragraph (a)(2)(ii), removing

‘‘the member and’’ and ‘‘the member or’’wherever they appear; and

c. In paragraph (b)(2), removingparagraph (b)(2)(ii), and removingparagraph designation (b)(2)(i).

The revision reads as follows:

§ 951.10 Initial monitoring requirements.(a) * * *(1) * * *(ii) Where AHP subsidies are used to

finance the purchase of owner-occupiedunits, the project sponsor must maintainhousehold income verificationdocumentation available for review bythe member or the Bank.* * * * *

Dated: May 2, 2001.

By the Board of Directors of the FederalHousing Finance Board.Allan I. Mendelowitz,Chairman.[FR Doc. 01–11706 Filed 5–9–01; 8:45 am]BILLING CODE 6725–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 301

[REG–101739–00]

RIN–1545–AX75

Clarification of Entity ClassificationRules; Hearing Cancellation

AGENCY: Internal Revenue Service (IRS),Treasury.ACTION: Cancellation of notice of publichearing on proposed rulemaking.

SUMMARY: This document providesnotice of cancellation of a publichearing on proposed regulations relatingto section 7701 that address the Federaltax classification of a business entitywholly owned by a foreign governmentand provide that a nonbank entity thatis wholly owned by a foreign bankcannot be disregarded as an entityseparate from its owner for purposes ofapplying the special rules of the InternalRevenue Code applicable to banks.DATES: The public hearing originallyscheduled for May 16, 2001, at 10 a.m.,is cancelled.

FOR FURTHER INFORMATION CONTACT:Sonya M. Cruse of the Regulations Unitat (202) 622–7180 (not a toll-freenumber).

SUPPLEMENTARY INFORMATION: A noticeof proposed rulemaking and notice ofpublic hearing that appeared in theFederal Register on Friday, January 12,2001, (66 FR 2854), announced that apublic hearing was scheduled for May16, 2001, at 10 a.m., in room 6718. Thesubject of the public hearing is proposedregulations under section 7701 of theInternal Revenue Code. The publiccomment period for these regulationsexpired on April 25, 2001.

The notice of proposed rulemakingand notice of public hearing, instructedthose interested in testifying at thepublic hearing to submit a request tospeak and an outline of the topics to beaddressed. As of Friday, May 4, 2001,no one has requested to speak.Therefore, the public hearing scheduledfor May 16, 2001, is cancelled.

Cynthia E. Grigsby,Chief, Regulations Unit, Office of SpecialCounsel (Modernization & StrategicPlanning).[FR Doc. 01–11842 Filed 5–9–01; 8:45 am]BILLING CODE 4830–01–P

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamationand Enforcement

30 CFR Part 904

[SPATS No. AR–038–FOR]

Arkansas Regulatory Program

AGENCY: Office of Surface MiningReclamation and Enforcement, Interior.ACTION: Proposed rule; reopening andextension of public comment period onproposed amendment.

SUMMARY: The Office of Surface MiningReclamation and Enforcement (OSM) isannouncing receipt of revisions to apreviously proposed amendment to theArkansas regulatory program (Arkansasprogram) under the Surface MiningControl and Reclamation Act of 1977(SMCRA). The revisions concernsubmission and processing of requestsfor valid existing rights determinations;interpretative rule related to subsidencedue to underground coal mining inareas designated by Act of Congress;road systems; public notices of filing ofpermit applications; and legislativepublic hearings. Arkansas intends torevise its program to be consistent withthe corresponding Federal regulations.



DATES: We will accept writtencomments until 4 p.m., c.d.t., May 25,2001.ADDRESSES: You should mail or handdeliver written comments to Michael C.Wolfrom, Director, Tulsa Field Office atthe address listed below.

You may review copies of theArkansas program, the amendment, andall written comments received inresponse to this document at theaddresses listed below during normalbusiness hours, Monday through Friday,excluding holidays. You may receiveone free copy of the amendment bycontacting OSM’s Tulsa Field Office.

Michael C. Wolfrom, Director, TulsaField Office, Office of Surface Mining,5100 East Skelly Drive, Suite 470, Tulsa,Oklahoma 74135–6547, Telephone:(918) 581–6430.

Arkansas Department ofEnvironmental Quality, Surface Miningand Reclamation Division, 8001National Drive, Little Rock, Arkansas72219–8913, Telephone (501) 682–0744.FOR FURTHER INFORMATION CONTACT:Michael C. Wolfrom, Director, TulsaField Office. Telephone: (918) 581–6430. Internet: [email protected] INFORMATION:

I. Background on the ArkansasProgram

On November 21, 1980, the Secretaryof the Interior conditionally approvedthe Arkansas program. You can findbackground information on theArkansas program, including theSecretary’s findings, the disposition ofcomments, and the conditions ofapproval in the November 21, 1980,Federal Register (45 FR 77003). You canfind later actions on the Arkansasprogram at 30 CFR 904.10, 904.12,904.15, and 904.16.

II. Discussion of the ProposedAmendment

By letter dated March 1, 2001(Administrative Record No. AR–567.04),Arkansas sent us an amendment to itsprogram under SMCRA and the Federalregulations at 30 CFR 732.17(b).Arkansas sent the amendment inresponse to a letter dated August 23,2000 (Administrative Record No. AR–567), that we sent to Arkansas under 30CFR 732.17(c). We announced receipt ofthe amendment in the April 6, 2001,Federal Register (66 FR 18216) andinvited public comment on itsadequacy. The public comment periodclosed May 7, 2001.

During our review of the amendment,we identified concerns relating tosubmission and processing of requestsfor valid existing rights determinations;

interpretative rule related to subsidencedue to underground coal mining inareas designated by Act of Congress;road systems; public notices of filing ofpermit applications; and legislativepublic hearings. We notified Arkansasof these concerns by letter dated April11, 2001 (Administrative Record No.AR–567.06). By letter dated April 19,2001 (Administrative Record No. AR–567.08), Arkansas sent us revisions forthe following provisions of theamendment:

A. Section 761.16 Submission andProcessing of Requests for Valid ExistingRights Determinations

1. Arkansas proposes to make aneditorial correction in the last sentencein paragraph (b). The revised lastsentence will read as follows:* * * This request may be submitted beforepreparing and submitting an application fora permit or boundary revision for the landunless the applicable regulatory programprovides otherwise.

2. Arkansas proposes to reviseparagraph (d)(1) so that it states that theOffice of Surface Mining Reclamationand Enforcement (OSM) instead of ‘‘theagency’’ will publish a notice in theFederal Register if the applicant’srequest for valid existing rightsdetermination involves Federal landswithin an area listed in Section761.11(a) or (b).

3. Arkansas proposes to revise the lastsentence in paragraph (e)(5)(ii) so that itstates that the Office of Surface MiningReclamation and Enforcement (OSM)instead of ‘‘the agency’’ will publish thedetermination, together with anexplanation of appeal rights andprocedures, in the Federal Register ifthe applicant’s request for valid existingrights determination involves Federallands within an area listed in Section761.11(a) or (b).

B. Section 761.200 Interpretative RuleRelated to Subsidence Due toUnderground Coal Mining in AreasDesignated by Act of Congress

Arkansas proposes to revise thissection by replacing obsolete‘‘legislative version’’ citations of theState Act with current ‘‘annotatedversion’’ citations of the State Act. Therevised section will read as follows:

(a) Interpretation of Section 761.11—AREAS WHERE MINING IS PROHIBITED ORLIMITED. Subsidence due to undergroundcoal mining is not included in the definitionof surface coal mining operations underSection 15–58–104(16) of the Act and Section700.5 of this chapter and therefore is notprohibited in areas protected under Section15–58–501(a)(1) of the Act.

C. Section 780.37 Road SystemsArkansas proposes to revise paragraph

(a)(4) by replacing the words ‘‘regulatoryauthority’’ with the word ‘‘Director’’ forconsistency with the other regulationsin this section. The revised paragraphwill read as follows:

(4) Contain a description of measures to betaken to obtain approval of the Director foralteration or relocation of a natural streamchannel under Section 816.151(c)(5) of thischapter;

D. Section 786.11 Public Notices ofFiling of Permit Applications

Arkansas proposes to revise paragraph(a)(5) to require applicants to includeinformation on the approximate timingof any proposed relocation or closure ofa public road. The revised paragraphwill read as follows:

(5) If an applicant seeks a permit to minewithin 100 feet of the outside right-of-way ofa public road or to relocate or close a publicroad, except where public notice and hearinghave previously been provided for thisparticular part of the road in accordance withSection 761.14 of this Chapter, a concisestatement describing the public road, theparticular part to be relocated or closed, andthe approximate timing and duration of therelocation or closing.

E. Section 786.14 Legislative PublicHearings

Arkansas proposes to revise paragraph(c) to reflect that the public hearings, ifrequested under Section 761.14(c), arerequired if the applicant proposes torelocate or close a public road orconduct surface coal mining operationswithin 100 feet, measured horizontally,of the outside right-of-way line of apublic road. The revised paragraph willread as follows:

(c) Legislative Public Hearings held inaccordance with this Section may be used bythe Director as the public hearing requiredunder Section 761.14(c) where the applicantproposes to relocate or close a public road orconduct surface coal mining operationswithin 100 feet, measured horizontally, of theoutside right-of-way line of a public road.

III. Public Comment ProceduresWe are reopening the comment period

on the proposed Arkansas programamendment to provide you anopportunity to reconsider the adequacyof the amendment in light of theadditional materials sent to us. Underthe provisions of 30 CFR 732.17(h), weare requesting comments on whether theamendment satisfies the programapproval criteria of 30 CFR 732.15. If weapprove the amendment, it will becomepart of the Arkansas program.

Written Comments: If you submitwritten or electronic comments on theproposed rule during the 15-day



comment period, they should bespecific, should be confined to issuespertinent to the notice, and shouldexplain the reason for yourrecommendation(s). We may not be ableto consider or include in theAdministrative Record commentsdelivered to an address other than theone listed above (see ADDRESSES).

Electronic Comments: Please submitInternet comments as an ASCII,WordPerfect, or Word file avoiding theuse of special characters and any formof encryption. Please also include ‘‘Attn:SPATS NO. AR–038–FOR’’ and yourname and return address in yourInternet message. If you do not receivea confirmation that we have receivedyour Internet message, contact the TulsaField Office at (918) 581–6430.

Availability of Comments: Ourpractice is to make comments, includingnames and home addresses ofrespondents, available for public reviewduring regular business hours at OSM’sTulsa Field Office (see ADDRESSES).Individual respondents may request thatwe withhold their home address fromthe administrative record, which wewill honor to the extent allowable bylaw. There also may be circumstances inwhich we would withhold from theadministrative record a respondent’sidentity, as allowable by law. If youwish us to withhold your name and/oraddress, you must state thisprominently at the beginning of yourcomment. However, we will notconsider anonymous comments. Wewill make all submissions fromorganizations or businesses, and fromindividuals identifying themselves asrepresentatives or officials oforganizations or businesses, availablefor public inspection in their entirety.

IV. Procedural Determinations

Executive Order 12866—RegulatoryPlanning and Review

This rule is exempted from review bythe Office of Management and Budgetunder Executive Order 12866.

Executive Order 12630—Takings

This rule does not have takingsimplications. This determination isbased on the analysis performed for thecounterpart Federal regulations.

Executive Order 13132—Federalism

This rule does not have federalismimplications. SMCRA delineates theroles of the Federal and Stategovernments with regard to theregulation of surface coal mining andreclamation operations. One of thepurposes of SMCRA is to ‘‘establish anationwide program to protect society

and the environment from the adverseeffects of surface coal miningoperations.’’ Section 503(a)(1) ofSMCRA requires that State lawsregulating surface coal mining andreclamation operations be ‘‘inaccordance with’’ the requirements ofSMCRA, and section 503(a)(7) requiresthat State programs contain rules andregulations ‘‘consistent with’’regulations issued by the Secretaryunder SMCRA.

Executive Order 12988—Civil JusticeReform

The Department of the Interior hasconducted the reviews required bysection 3 of Executive Order 12988 andhas determined that, to the extentallowed by law, this rule meets theapplicable standards of subsections (a)and (b) of this section. However, thesestandards are not applicable to theactual language of State regulatoryprograms and program amendmentssince each such program is drafted andpromulgated by a specific State, notOSM. Under sections 503 and 505 ofSMCRA (30 U.S.C. 1253 and 1255) and30 CFR 730.11, 732.15, and732.17(h)(10), decisions on proposedState regulatory programs and programamendments submitted by the Statesmust be based solely on a determinationof whether the submittal is consistentwith SMCRA and its implementingFederal regulations and whether theother requirements of 30 CFR Parts 730,731, and 732 have been met.

National Environmental Policy ActSection 702(d) of SMCRA (30 U.S.C.

1292(d)) provides that a decision on aproposed State regulatory programprovision does not constitute a majorFederal action within the meaning ofsection 102(2)(C) of the NationalEnvironmental Policy Act (42 U.S.C.4332(2)(C)). A determination has beenmade that such decisions arecategorically excluded from the NEPAprocess (516 DM 8.4.A).

Paperwork Reduction ActThis rule does not contain

information collection requirements thatrequire approval by the Office ofManagement and Budget under thePaperwork Reduction Act (44 U.S.C.3507 et seq.).

Regulatory Flexibility ActThe Department of the Interior has

determined that this rule will not havea significant economic impact on asubstantial number of small entitiesunder the Regulatory Flexibility Act (5U.S.C. 601 et seq.). The State submittalwhich is the subject of this rule is based

upon counterpart Federal regulations forwhich an economic analysis wasprepared and certification made thatsuch regulations would not have asignificant economic effect upon asubstantial number of small entities.Therefore, this rule will ensure thatexisting requirements previouslypromulgated by OSM will beimplemented by the State. In making thedetermination as to whether this rulewould have a significant economicimpact, the Department relied upon thedata and assumptions for thecounterpart Federal regulations.

Small Business Regulatory EnforcementFairness Act

This rule is not a major rule under 5.U.S.C. 804(2), the Small BusinessRegulatory Enforcement Fairness Act.This rule:

a. Does not have an annual effect onthe economy of $100 million.

b. Will not cause a major increase incosts or prices for consumers,individual industries, federal, state, orlocal government agencies, orgeographic regions.

c. Does not have significant adverseeffects on competition, employment,investment, productivity, innovation, orthe ability of U.S. based enterprises tocompete with foreign-based enterprises.

This determination is based upon thefact that the State submittal which is thesubject of this rule is based uponcounterpart Federal regulations forwhich an analysis was prepared and adetermination made that the Federalregulation was not considered a majorrule.

Unfunded Mandates

This rule will not impose a cost of$100 million or more in any given yearon any governmental entity or theprivate sector.


Intergovernmental relations, Surfacemining, Underground mining.

Dated: May 2, 2001.

John W. Coleman,Acting Regional Director, Mid-ContinentRegional Coordinating Center.[FR Doc. 01–11728 Filed 5–9–01; 8:45 am]





Coast Guard

33 CFR Part 140

[USCG–2001–9045]

RIN 2115–AG14

Inspections Under, and Enforcementof, Coast Guard Regulations for FixedFacilities on the Outer ContinentalShelf by the Minerals ManagementService

AGENCY: Coast Guard, DOT.ACTION: Notice of proposed rulemaking.

SUMMARY: We propose to authorize theMinerals Management Service (MMS) toperform inspections, on behalf of theCoast Guard, on fixed facilities engagedin Outer Continental Shelf activities andto enforce Coast Guard regulationsapplicable to those facilities. MMSalready performs inspections on thesefacilities to determine whether theycomply with MMS regulations. Byauthorizing MMS to also check forcompliance with Coast Guardregulations, we avoid duplicatingfunctions, reduce Federal costs, andincrease the frequency of inspections.DATES: Comments and related materialmust reach the Docket ManagementFacility on or before July 9, 2001.ADDRESSES: To make sure yourcomments and related material are notentered more than once in the docket,please submit them by only one of thefollowing means:

(1) By mail to the Docket ManagementFacility (USCG–2001–9045), U.S.Department of Transportation, room PL–401, 400 Seventh Street SW.,Washington, DC 20590–0001.

(2) By hand delivery to room PL–401on the Plaza level of the Nassif Building,400 Seventh Street SW., Washington,DC, between 9 a.m. and 5 p.m., Mondaythrough Friday, except Federal holidays.The telephone number is 202–366–9329.

(3) By fax to the Docket ManagementFacility at 202–493–2251.

(4) Electronically through the WebSite for the Docket Management Systemat http://dms.dot.gov.

The Docket Management Facilitymaintains the public docket for thisrulemaking. Comments and materialreceived from the public, as well asdocuments mentioned in this preambleas being available in the docket, willbecome part of this docket and will beavailable for inspection or copying atroom PL–401 on the Plaza level of theNassif Building, 400 Seventh StreetSW., Washington, DC, between 9 a.m.

and 5 p.m., Monday through Friday,except Federal holidays. You may alsofind this docket on the Internet athttp://dms.dot.gov.FOR FURTHER INFORMATION CONTACT: Ifyou have questions on this proposedrule, contact James M. Magill, Vesseland Facility Operating StandardsDivision (GMMSO–2), telephone 202–267–1082 or fax 202–267–4570. If youhave questions on viewing or submittingmaterial to the docket, call DorothyBeard, Chief, Dockets, Department ofTransportation, telephone 202–366–5149.


Request for Comments

We encourage you to participate inthis rulemaking by submittingcomments and related material. If youdo so, please include your name andaddress, identify the docket number forthis rulemaking (USCG–2001–9045),indicate the specific section of thisdocument to which each commentapplies, and give the reason for eachcomment. You may submit yourcomments and material by mail, handdelivery, fax, or electronic means to theDocket Management Facility at theaddress under ADDRESSES; but pleasesubmit your comments or material byonly one means. If you submit them bymail or hand delivery, submit them inan unbound format, no larger than 81⁄2by 11 inches, suitable for copying andelectronic filing. If you submit them bymail and would like to know theyreached the Facility, please enclose astamped, self-addressed postcard orenvelope. We will consider allcomments and material received duringthe comment period. We may changethis proposed rule in view of them.

Public Meeting

We do not now plan to hold a publicmeeting. But you may submit a requestfor one to the Docket ManagementFacility at the address under ADDRESSESexplaining why one would bebeneficial. If we determine that onewould aid this rulemaking, we will holdone at a time and place announced bya later notice in the Federal Register.

Background and Purpose

The purpose of this rulemaking is toauthorize the Minerals ManagementService (MMS) to perform inspectionson fixed Outer Continental Shelf (OCS)facilities engaged in OCS activities andto enforce Coast Guard regulationsapplicable to those facilities forcompliance with Coast Guardregulations in 33 CFR chapter I,subchapter N. The Coast Guard and

MMS regulate safety on fixed OCSfacilities. MMS regulates the structuralintegrity of the facility, in addition toenforcing all regulations pertaining toproduction and well-work activities,such as drilling and workoveroperations. The Coast Guard regulatesmarine systems, such as lifesaving andnavigation equipment, and workplacesafety and health. Annually, MMS visitsall of the fixed OCS facilities to inspectfor violations in the area of itsresponsibility. The Coast Guard,because of the much fewer number ofinspectors available, visits less than 10percent. On December 18, 1998, MMSand the Coast Guard agreed to reviewthe regulations of both agencies toensure consistency and to eliminateduplication. As part of this review,MMS and the Coast Guard decided that,because MMS was already visiting all ofthe fixed OCS facilities at least once ayear, it would be beneficial to bothagencies if MMS was authorized, onbehalf of the Coast Guard, to inspect andenforce the Coast Guard’s regulations forfixed OCS facilities. Such anauthorization is allowed under theOuter Continental Shelf Lands Act,which, in 43 U.S.C. 1348(a), allows theCoast Guard to use the services andpersonnel of other Federal agencies forthe enforcement of its OCS regulations.

Regulatory EvaluationThis proposed rule is not a

‘‘significant regulatory action’’ undersection 3(f) of Executive Order 12866,Regulatory Planning and Review, anddoes not require an assessment ofpotential costs and benefits undersection 6(a)(3) of that Order. The Officeof Management and Budget has notreviewed it under that Order. It is not‘‘significant’’ under the regulatorypolicies and procedures of theDepartment of Transportation (DOT) (44FR 11040, February 26, 1979). Weexpect the economic impact of thisproposed rule to be so minimal that afull Regulatory Evaluation underparagraph 10e of the regulatory policiesand procedures of DOT is unnecessary.

The proposed rule would not imposesignificant additional costs to MMS’sinspection program or to the owners offacilities being inspected. Owners oroperators of each facility would berequired to incur a slight burdenassociated with keeping a copy of theannual self-inspection form CG–5432 onthe facility. This burden is explained indetail in the ‘‘Collection of Information’’section. We expect the annual cost ofthis burden to be about $8.25 per facilityor $28,776 for the 3,489 facilitiesengaged in Outer Continental Shelfactivities. Using 7 percent as the



discount rate, the 10-year present valueof this cost is $202,110.

Authorizing MMS to check forcompliance with Coast Guardregulations would avoid duplicatingfunctions and enhance the enforcementof regulations.

Small EntitiesUnder the Regulatory Flexibility Act

(5 U.S.C. 601–612), we consideredwhether this proposed rule would havea significant economic impact on asubstantial number of small entities.The term ‘‘small entities’’ comprisessmall businesses, not-for-profitorganizations that are independentlyowned and operated and are notdominant in their fields, andgovernmental jurisdictions withpopulations of less than 50,000.

We do not expect this proposedrulemaking to create significantadditional costs to the MMS or theinspected facilities. This proposedrulemaking would authorize MMS toinspect and enforce Coast Guardregulations on fixed OCS facilities.Coast Guard personnel currentlyperform these inspections, andauthorizing MMS to do so does notreduce the number of inspections norsignificantly increase the burden placedon the affected entities. Though itaffects all small entities involved, weestimate the additional burden to be$8.25 per facility as shown in the‘‘Regulatory Evaluation’’ section of thispreamble. We further explain thisburden and the affected entities in the‘‘Collection of Information’’ section ofthis preamble.

Therefore, the Coast Guard certifiesunder 5 U.S.C. 605(b) that this proposedrule would not have a significanteconomic impact on a substantialnumber of small entities. If you thinkthat your business, organization, orgovernmental jurisdiction qualifies as asmall entity and that this rule wouldhave a significant economic impact onit, please submit a comment to theDocket Management Facility at theaddress under ADDRESSES. In yourcomment, explain why you think itqualifies and how and to what degreethis rule would economically affect it.

Assistance for Small EntitiesUnder section 213(a) of the Small

Business Regulatory EnforcementFairness Act of 1996 (Public Law 104–121), we want to assist small entities inunderstanding this proposed rule so thatthey can better evaluate its effects onthem and participate in the rulemaking.If the rule would affect your smallbusiness, organization, or governmentaljurisdiction and you have questions

concerning its provisions or options forcompliance, please consult James M.Magill, Vessel and Facility OperatingStandards Division (GMMSO–2),telephone 202–267–1082 or fax 202–267–4570.

Small businesses may send commentson the actions of Federal employeeswho enforce, or otherwise determinecompliance with, Federal regulations tothe Small Business and AgricultureRegulatory Enforcement Ombudsmanand the Regional Small BusinessRegulatory Fairness Boards. TheOmbudsman evaluates these actionsannually and rates each agency’sresponsiveness to small business. If youwish to comment on actions byemployees of the Coast Guard, call1–888–REG–FAIR (1–888–734–3247).

Collection of Information

This proposed rule would call for acollection of information under thePaperwork Reduction Act of 1995 (44U.S.C. 3501–3520). As defined in 5 CFR1320.3(c), ‘‘collection of information’’comprises reporting, recordkeeping,monitoring, posting, labeling, and other,similar actions. The title anddescription of the informationcollections, a description of those whomust collect the information, and anestimate of the total annual burdenfollow. The estimate covers the time forreviewing instructions, searchingexisting sources of data, gathering andmaintaining the data needed, andcompleting and reviewing thecollection.

Title: Inspection Under, andEnforcement of, Coast GuardRegulations for Fixed Facilities on theOuter Continental Shelf by the MineralsManagement Service.

Summary of the Collection ofInformation: This proposed rule wouldrequire that a copy of form CG–5432, theannual self-inspection report, be kept onthe facility. This form is alreadyrequired to be completed annually andsubmitted to the Coast Guard, but acopy is not required to be kept on thefacility. This proposed rule wouldrequire that a copy be kept on thefacility for use by MMS inspectors. Theproposed requirement would be addedto the already approved collection ofinformation OMB 2115–0569.

Need for Information: A copy of thereport is needed on the facility to showMMS inspectors that the annual self-inspection has been conducted.

Proposed Use of Information: Thecopy of form CG–5432 would be used toconfirm that the self-inspection hadbeen conducted.

Description of the Respondents:Owners or operators of fixed OCSfacilities.

Number of Respondents: We estimatethere are 3,489 facilities engaged inOuter Continental Shelf activities.

Frequency of Response: Each year’sform CG–5432 would be required to bekept on the facility for 2 years.

Burden of Response: The burdenassociated with meeting the proposedrequirement would involve duplicatingform CG–5432 so that the original canbe sent to the Coast Guard, as alreadyrequired, and a copy kept on the facility.We expect this burden to be 15 minutesannually per facility.

Estimate of Total Annual Burden: Weestimate that the proposed requirementwould impose a total annual burden oneach facility of 15 minutes or 872 hoursfor all fixed OCS facilities. This amountwould be added to the already approvedannual burden associated with OMBcollection 2115–0569.

As required by the PaperworkReduction Act of 1995 (44 U.S.C.3507(d)), we have submitted a copy ofthis proposed rule to the Office ofManagement and Budget (OMB) for itsreview of the collection of information.

We ask for public comment on theproposed collection of information tohelp us determine how useful theinformation is; whether it can help usperform our functions better; whether itis readily available elsewhere; howaccurate our estimate of the burden ofcollection is; how valid our methods fordetermining burden are; how we canimprove the quality, usefulness, andclarity of the information; and how wecan minimize the burden of collection.

If you submit comments on thecollection of information, submit themboth to OMB and to the DocketManagement Facility where indicatedunder ADDRESSES, by the date underDATES.

You need not respond to a collectionof information unless it displays acurrently valid control number fromOMB. Before the requirements for thiscollection of information becomeeffective, we will publish notice in theFederal Register of OMB’s decision toapprove, modify, or disapprove thecollection.

FederalismWe have analyzed this proposed rule

under Executive Order 13132,Federalism, and have determined that itdoes not have implications forfederalism under that Order.

Unfunded Mandates Reform ActThe Unfunded Mandates Reform Act

of 1995 (2 U.S.C. 1531–1538) requires



Federal agencies to assess the effects oftheir regulatory actions not specificallyrequired by law. In particular, the Actaddresses actions that may result in theexpenditure by a State, local, or tribalgovernment, in the aggregate, or by theprivate sector of $100,000,000 or morein any one year. Though this proposedrule would not result in such anexpenditure, we do discuss the effects ofthis rule elsewhere in this preamble.

Taking of Private PropertyThis proposed rule would not effect a

taking of private property or otherwisehave taking implications underExecutive Order 12630, GovernmentalActions and Interference withConstitutionally Protected PropertyRights.

Civil Justice ReformThis proposed rule meets applicable

standards in sections 3(a) and 3(b)(2) ofExecutive Order 12988, Civil JusticeReform, to minimize litigation,eliminate ambiguity, and reduceburden.

Protection of ChildrenWe have analyzed this proposed rule

under Executive Order 13045,Protection of Children fromEnvironmental Health Risks and SafetyRisks. This rule is not an economicallysignificant rule and does not concern anenvironmental risk to health or risk tosafety that may disproportionately affectchildren.

EnvironmentWe considered the environmental

impact of this proposed rule andconcluded that, under figure 2–1,paragraph (34)(b), of CommandantInstruction M16475.1C, this proposedrule is categorically excluded fromfurther environmental documentation.The proposed rule is excluded underparagraph (34)(b) because it isadministrative in nature and has noenvironmental effect. A ‘‘CategoricalExclusion Determination’’ is available inthe docket where indicated underADDRESSES.

List of Subjects in 33 CFR Part 140Continental shelf, Incorporation by

reference, Investigations, Marine safety,Occupational safety and health,Penalties, Reporting and recordkeepingrequirements.

For reasons discussed in thepreamble, the Coast Guard proposes toamend 33 CFR part 140 as follows:

PART 140—GENERAL


Authority: 43 U.S.C. 1333, 1348, 1350,1356; 49 CFR 1.46.

2. In § 140.10, add, in alphabeticalorder, the definition of ‘‘MineralsManagement Service inspector’’ to readas follows:

§ 140.10 Definitions.* * * * *

Minerals Management Serviceinspector or MMS inspector means anindividual employed by the MineralsManagement Service who inspects fixedOCS facilities on behalf of the CoastGuard to determine whether therequirements of this subchapter are met.* * * * *

3. In § 140.101—a. Revise the section heading to read

as set forth below;b. Redesignate paragraphs (b) through

(e) as paragraphs (c) through (f);c. Add a new paragraph (b) to read as

set forth below;d. In redesignated paragraph (c),

before the words ‘‘marine inspectors’’,add the words ‘‘Coast Guard’’; followingthe words ‘‘OCS activities’’, add thewords ‘‘, and MMS inspectors mayinspect fixed OCS facilities,’’; and, atthe end of the last sentence, add thewords ‘‘or MMS’’; and

e. In redesignated paragraph (d),remove the words ‘‘a marine inspector’’and add, in their place, the words ‘‘aCoast Guard marine inspector or anMMS inspector’’; and remove the words‘‘The marine inspector’’ and add, intheir place, the words ‘‘The Coast Guardmarine inspector or the MMSinspector’’.

§ 140.101 Inspection by Coast Guardmarine inspectors or Minerals ManagementService inspectors.* * * * *

(b) On behalf of the Coast Guard, eachfixed OCS facility engaged in OCSactivities is subject to inspection by theMinerals Management Service (MMS).* * * * *

4. In § 140.103—a. In paragraph (b), remove

‘‘140.101(e)’’ and add, in its place,‘‘140.101(f)’’; and remove the words‘‘Marine inspectors’’ and add, in theirplace, the words ‘‘marine inspectors andMinerals Management Service (MMS)inspectors’’; and

b. In paragraph (c), remove‘‘140.101(e)’’ and add, in its place,‘‘140.101(f)’’; and at the end of theparagraph, add a sentence to read asfollows:

§ 140.103 Annual inspection of fixed OCSfacilities.* * * * *

(c) * * * A copy of the completedform must be retained on the facility for

2 years after the inspection and madeavailable to MMS on request.* * * * *

§ 140.105 [Amended]

5. In § 140.105—a. In paragraph (a), after the words

‘‘during an inspection’’, add the words‘‘by a Coast Guard marine inspector ora Minerals Management Service (MMS)inspector’’;

b. In paragraph (b), before the words‘‘is reported to’’, add the words ‘‘or anMMS inspector’’; and, after the words‘‘time specified by the’’, remove thewords ‘‘Coast Guard’’;

c. In paragraph (c), after the words‘‘fire fighting equipment deficiencies’’,add the words ‘‘on fixed OCS facilities’’;and remove the words ‘‘the OCMI’’wherever they appear and add, in theirplace, ‘‘MMS’’; and

d. In paragraph (d), after the words‘‘Marine Inspection,’’ add the words ‘‘orMMS (for deficiencies or hazardsdiscovered by MMS during aninspection of a fixed OCS facility)’’.

Dated: March 16, 2001.R.C. North,Rear Admiral, U.S. Coast Guard, AssistantCommandant for Marine Safety andEnvironmental Protection.[FR Doc. 01–11848 Filed 5–9–01; 8:45 am]BILLING CODE 4910–15–U

DEPARTMENT OF VETERANSAFFAIRS

38 CFR Part 36

RIN 2900–AE20; 2900–AE60

Loan Guaranty: Title EvidenceRequirements and OccupancyRequirements for Conveyance ofProperties to VA by Holders;Acceptance of Partial Payments;Indemnification of Default

AGENCY: Department of Veterans Affairs.ACTION: Proposed rules: withdrawal.

SUMMARY: This document withdraws theproposal to amend the loan guarantyregulations that was published in theFederal Register on August 6, 1990 (55FR 31847). We proposed to authorizethe Secretary of Veterans Affairs tospecify the title documentation requiredfrom the holder when VA acquires aproperty which was financed with aVA-guaranteed loan that has beenterminated and to authorize theSecretary of Veterans Affairs to establisha date by which VA must receive suchtitle documentation from the holder.Further, we proposed to require that aproperty acquired by VA be vacant



when conveyed to VA unless someoneproperly in possession by virtue of aredemption period occupies it or VAotherwise directs the holder. Thisdocument also withdraws the proposalto amend the loan guaranty regulationsthat was published in the FederalRegister on March 2, 1994 (59 FR 9944).In the March 2, 1994 document, weproposed to change the regulations byrequiring that the mortgage holderprovide notice to VA when refusing toaccept partial payment on a loan indefault and to clarify when a veteran isliable to VA for a loss due to a loandefault. We are reconsidering the issuesraised in both proposed rules in light ofchanges that have occurred in theindustry since the proposals werepromulgated. These issues may be thesubject of a future rulemakingproceeding.FOR FURTHER INFORMATION CONTACT: Mr.Richard Fyne, Assistant Director forLoan Management (261), Loan GuarantyService, Veterans BenefitsAdministration, Department of VeteransAffairs, 810 Vermont Avenue, NW.,Washington, DC 20420, phone (202)273–7380. (This is not a toll-freenumber.)

Approved: February 15, 2001.Anthony J. Principi,Secretary of Veterans Affairs.[FR Doc. 01–11745 Filed 5–9–01; 8:45 am]BILLING CODE 8320–01–P


40 CFR Part 62

[Region 2 Docket No. NY46–217b, FRL–6977–3]

Approval and Promulgation of StatePlans For Designated Facilities; NewYork

AGENCY: Environmental ProtectionAgency (EPA)ACTION: Proposed rule.

SUMMARY: EPA is proposing to approvethe New York supplementary submittalfor meeting EPA’s conditional approvalof the New York State Plan forregulating existing Municipal SolidWaste Landfills. The supplementalsubmittal documents that, except fortwo landfills, all are in compliance. ATitle V permit containing a complianceschedule with all five federallyenforceable increments of progress hasbeen provided for one landfill and theother landfill is undergoing anapplicability determination. In the‘‘Rules and Regulations’’ section of this

Federal Register, EPA is approving theState’s State Plan submittal, as a directfinal rule without prior proposalbecause the Agency views this as anoncontroversial submittal andanticipates no adverse comments. Adetailed rationale for the approval is setforth in the direct final rule. If EPAreceives no adverse comments, EPA willnot take further action on this proposedrule. If EPA receives adverse comments,EPA will withdraw the direct final ruleand it will not take effect. EPA willaddress all public comments in asubsequent final rule based on thisproposed rule. The EPA will notinstitute a second comment period onthis action. Any parties interested incommenting on this action should do soat this time.DATES: Written comments must bereceived on or before June 11, 2001.ADDRESSES: All comments should beaddressed to: Raymond Werner, Chief,Air Programs Branch, EnvironmentalProtection Agency, Region 2 Office, 290Broadway, New York, New York 10007–1866.

Copies of the State submittal areavailable at the following addresses forinspection during normal businesshours:Environmental Protection Agency,

Region 2 Office, 290 Broadway, 25thFloor, New York, New York 10007–1866.

New York State Department ofEnvironmental Conservation, Divisionof Air Resources, 50 Wolf Road,Albany, New York 12233.

FOR FURTHER INFORMATION CONTACT:Craig Flamm, Air Programs Branch,Environmental Protection Agency, 290Broadway, 25th Floor, New York, NewYork 10278, (212) 637–4021.SUPPLEMENTARY INFORMATION: Foradditional information see the directfinal rule which is located in the RulesSection of this Federal Register.

Dated: April 19, 2001.William J. Muszynski,Acting Regional Administrator Region 2.[FR Doc. 01–11830 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–P

FEDERAL EMERGENCYMANAGEMENT AGENCY

44 CFR Part 62

RIN 3067–AD23

National Flood Insurance Program;Assistance to Private Sector PropertyInsurers

AGENCY: Federal EmergencyManagement Agency (FEMA).

ACTION: Proposed rule.

SUMMARY: Based on recent costinformation, we (FEMA) propose toadjust the expense allowance under theFinancial Assistance/SubsidyArrangement between the FederalInsurance Administrator and the privatesector insurers that sell and serviceflood insurance.DATES: Comments on this proposed ruleshould be received on or before June 11,2001.ADDRESSES: Please submit any writtencomments to the Rules Docket Clerk,Office of the General Counsel, FederalEmergency Management Agency, 500 CStreet, SW., room 840, Washington, DC20472, (facsimile) 202–646–4536, or(email) [email protected] FURTHER INFORMATION CONTACT:Edward L. Connor, Federal EmergencyManagement Agency, Federal InsuranceAdministration, 500 C Street SW.,Washington, DC 20472, 202–646–3443,(facsimile) 202–646–3445, (email)[email protected].

SUPPLEMENTARY INFORMATION: Under theFinancial Assistance/SubsidyArrangement between the FederalInsurance Administrator and the privatesector insurers that sell and serviceflood insurance under the Write YourOwn (WYO) program, participatinginsurers are entitled to an expenseallowance—a portion of the floodpremiums from the policies that theinsurers sell. The expense allowance isbased on data for the property/casualtyindustry published, as of March 15 ofthe prior Arrangement year, in Part IIIof the Insurance Expense Exhibit inA.M. Best Company’s Aggregates andAverages for five property coverages.

Based on our analysis of recentexpense information from thecompanies, we conclude that we shouldincrease the current expense allowanceunder the Arrangement. We aretherefore proposing a change in theexpense allowance to reflect this newcost information.

National Environmental Policy Act(NEPA)

NEPA imposes requirements forconsidering the environmental impactsof agency decisions. It requires that anagency prepare an EnvironmentalImpact Statement (EIS) for ‘‘majorfederal actions significantly affecting thequality of the human environment.’’ Ifan action may or may not have asignificant impact, the agency mustprepare an environmental assessment(EA). If, as a result of this study, theagency makes a Finding of NoSignificant Impact (FONSI), no further



action is necessary. If it will have asignificant effect, then the agency usesthe EA to develop an EIS.

Categorical Exclusions. Agencies cancategorically identify actions (forexample, repair of a building damagedby a disaster) that do not normally havea significant impact on the environment.The purpose of this proposed rule is toadjust the expense allowance under theFinancial Assistance/SubsidyArrangement between the FederalInsurance Administrator and the privatesector insurers that sell and serviceflood insurance.

Accordingly, we have determined thatthis rule is excluded from thepreparation of an environmentalassessment or environmental impactstatement under 44 CFR 10.8(d)(2)(ii),where the rule is related to actions thatqualify for categorical exclusion under44 CFR 10.8(d)(2)(i), which addressesthe preparation, revision, and adoptionof regulations, directives, and otherguidance documents related to actionsthat qualify for categorical exclusions.We have not prepared an environmentalassessment or environmental impactstatement as defined by NEPA.

Executive Order 12866, RegulatoryPlanning and Review

We have prepared and reviewed thisproposed rule under the provisions ofE.O. 12866, Regulatory Planning andReview. Under Executive Order 12866,58 FR 51735, October 4, 1993, asignificant regulatory action is subject toOMB review and the requirements ofthe Executive Order. The ExecutiveOrder defines ‘‘significant regulatoryaction’’ as one that is likely to result ina rule that may:

(1) Have an annual effect on theeconomy of $100 million or more oradversely affect in a material way theeconomy, a sector of the economy,productivity, competition, jobs, theenvironment, public health or safety, orState, local, or tribal governments orcommunities;

(2) Create a serious inconsistency orotherwise interfere with an action takenor planned by another agency;

(3) Materially alter the budgetaryimpact of entitlements, grants, user fees,or loan programs or the rights andobligations of recipients thereof; or

(4) Raise novel legal or policy issuesarising out of legal mandates, thePresident’s priorities, or the principlesset forth in the Executive Order.

For the reasons that follow we haveconcluded that the proposed rule isneither an economically significant nora significant regulatory action under theExecutive Order. The rule would adjustthe expense allowance under the

Financial Assistance/SubsidyArrangement between the FederalInsurance Administrator and the privatesector insurers that sell and serviceflood insurance. The adjustment wouldincrease by approximately $14 millionthe expense allowance paid to the WYOprivate sector insurers. It would nothave an annual effect on the economyof $100 million or more or adverselyaffect in a material way the economy,the insurance sector, competition, orother sectors of the economy. It wouldcreate no serious inconsistency orotherwise interfere with an action takenor planned by another agency. It wouldnot materially alter the budgetaryimpact of entitlements, grants, user fees,or loan programs or the rights andobligations of recipients thereof. Nordoes it raise novel legal or policy issuesarising out of legal mandates, thePresident’s priorities, or the principlesset forth in the Executive Order.

The Office of Management and Budgethas not reviewed this proposed ruleunder the principles of Executive Order12866.


This rule does not contain a collectionof information and is therefore notsubject to the provisions of thePaperwork Reduction Act.


Under the Regulatory Flexibility Actagencies must consider the impact oftheir rulemakings on ‘‘small entities’’(small businesses, small organizationsand local governments). When 5 U.S.C.553 requires an agency to publish anotice of proposed rulemaking, the Actrequires a regulatory flexibility analysisfor both the proposed rule and the finalrule if the rulemaking could ‘‘have asignificant economic impact on asubstantial number of small entities.’’The Act also provides that if aregulatory flexibility analysis is notrequired, the agency must certify in therulemaking document that therulemaking will not ‘‘have a significanteconomic impact on a substantialnumber of small entities.’’

This proposed rule revises the NFIPregulations to adjust the expenseallowance under the FinancialAssistance/Subsidy Arrangementbetween the Federal InsuranceAdministrator and the private sectorinsurers that sell and service floodinsurance. Therefore, I certify that aregulatory flexibility analysis is notrequired for this rule because it wouldnot have a significant economic impacton a substantial number of smallentities.

Executive Order 13132, FederalismExecutive Order 13132 sets forth

principles and criteria that agenciesmust adhere to in formulating andimplementing policies that havefederalism implications, that is,regulations that have substantial directeffects on the States, or on thedistribution of power andresponsibilities among the variouslevels of government. Federal agenciesmust closely examine the statutoryauthority supporting any action thatwould limit the policymaking discretionof the States, and to the extentpracticable, must consult with State andlocal officials before implementing anysuch action.

We have reviewed this proposed ruleunder E.O.13132 and have determinedthat the rule does not have federalismimplications as defined by the ExecutiveOrder. The rule would adjust theexpense allowance under the FinancialAssistance/Subsidy Arrangementbetween the Federal InsuranceAdministrator and the private sectorinsurers that sell and service floodinsurance. The rule in no way that weforesee affects the distribution of powerand responsibilities among the variouslevels of government or limits thepolicymaking discretion of the States.

List of Subjects in 44 CFR Part 62Flood insurance.Accordingly, amend 44 CFR Part 62 as

follows:

PART 62—INSURANCE COVERAGEAND RATES


Authority: 42 U.S.C. 4001 et seq.;Reorganization Plan No. 3 of 1978, 43 FR41943, 3 CFR, 1978 Comp., p. 329; E.O.12127 of Mar. 31, 1979, 44 FR 19367, 3 CFR,1979 Comp., p. 376.

2. Revise Article III.B of appendix Ato part 62 to read as follows:

Appendix A to Part 62—FederalEmergency Management Agency,Federal Insurance Administration,Financial Assistance/SubsidyArrangement

* * * * *

Article III—Loss Costs, Expenses, ExpenseReimbursement, and Premium Refunds* * * * *

B. The Company may withhold asoperating and administrative expenses, otherthan agents’ or brokers’ commissions, anamount from the Company’s writtenpremium on the policies covered by thisArrangement in reimbursement of all of theCompany’s marketing, operating, andadministrative expenses, except for allocated



and unallocated loss adjustment expensesdescribed in C. of this article. This amountwill equal the sum of the average of industryexpense ratios for ‘‘Other Acq.’’, ‘‘Gen. Exp.’’,and ‘‘Taxes’’ calculated by aggregatingpremiums and expense amounts for each offive property coverages using direct premiumand expense information to derive weightedaverage expense ratios. For this purpose, we(the Federal Insurance Administration) willuse data for the property/casualty industrypublished, as of March 15 of the priorArrangement year, in Part III of the InsuranceExpense Exhibit in A.M. Best Company’sAggregates and Averages for the followingfive property coverages: Fire, Allied Lines,Farmowners Multiple Peril, HomeownersMultiple Peril, and Commercial MultiplePeril (non-liability portion). In addition, thisamount will be increased by one percentagepoint to reimburse expenses beyond regularproperty/casualty expenses.

The Company may retain fifteen percent(15%) of the Company’s written premium onthe policies covered by this Arrangement asthe commission allowance to meetcommissions or salaries of their insuranceagents, brokers, or other entities producingqualified flood insurance applications andother related expenses.

The amount of expense allowance retainedby the Company may increase a maximum oftwo percentage points, depending on theextent to which the Company meets themarketing goals for the Arrangement yearcontained in marketing guidelinesestablished pursuant to Article II.G. We willpay the company the amount of any increaseafter the end of the Arrangement year.

The Company, with the consent of theAdministrator as to terms and costs, may usethe services of a national rating organization,licensed under state law, to help usundertake and carry out such studies and

investigations on a community or individualrisk basis, and to determine equitable andaccurate estimates of flood insurance riskpremium rates as authorized under theNational Flood Insurance Act of 1968, asamended. We will reimburse the Companyfor the charges or fees for such services underthe provisions of the WYO AccountingProcedures Manual.

* * * * *(Catalog of Federal Domestic Assistance No.83.100, ‘‘Flood Insurance’’)

Dated: May 1, 2001.

Howard Leikin,Acting Administrator, Federal InsuranceAdministration.

[FR Doc. 01–11365 Filed 5–9–01; 8:45 am]



This section of the FEDERAL REGISTERcontains documents other than rules orproposed rules that are applicable to thepublic. Notices of hearings and investigations,committee meetings, agency decisions andrulings, delegations of authority, filing ofpetitions and applications and agencystatements of organization and functions areexamples of documents appearing in thissection.

Notices Federal Register

23877

Vol. 66, No. 91


1 All the petitions and comments we received area part of the rulemaking record for Docket No. 98–085–1. You may read the petitions and commentsin our reading room. The reading room is locatedin room 1141 of the USDA South Building, 14thStreet and Independence Avenue, SW.,Washington, DC. Normal reading room hours are 8a.m. to 4:30 p.m., Monday through Friday, exceptholidays. To be sure someone is there to help you,please call (202) 690–2817 before coming.

2 All the petitions and comments we received area part of the rulemaking record for Docket No. 98–085–1. You may read the petitions and commentsin our reading room. The reading room is locatedin room 1141 of the USDA South Building, 14thStreet and Independence Avenue, SW.,Washington, DC. Normal reading room hours are 8a.m. to 4:30 p.m., Monday through Friday, exceptholidays. To be sure someone is there to help you,please call (202) 690–2817 before coming.

DEPARTMENT OF AGRICULTURE

Animal and Plant Health InspectionService

[Docket No. 98–085–5]

Aquaculture; Public Meeting

AGENCY: Animal and Plant HealthInspection Service, USDA.ACTION: Notice of public meeting.

SUMMARY: We are issuing this notice toinform the aquaculture industries,interested parties, and the generalpublic that a public meeting will beheld to discuss how and to what extentthe Animal and Plant Health InspectionService should regulate aquatic speciesand to discuss any other issuesconcerning possible regulation ofaquaculture by the Agency.DATES: The public meeting will be heldon Friday, June 8, 2001, from 2 p.m. to5 p.m.ADDRESSES: The public meeting will beheld in the Community Meeting Roomof the Twin Falls County OfficeBuilding, 246 Third Avenue East, TwinFalls, ID, in conjunction with the annualmeeting of the Idaho AquacultureAssociation.

FOR FURTHER INFORMATION CONTACT: Forinformation about the APHIS publicmeeting, contact Dr. Otis Miller, Jr.,National Aquaculture Coordinator,Center for Planning, Certification, andMonitoring, VS, APHIS, 4700 RiverRoad Unit 46, Riverdale, MD 20737–1231, (301) 734–6188.

For information regarding the annualmeeting of the Idaho AquacultureAssociation, call Mr. Dave Bruhn,Executive Secretary, Idaho AquacultureAssociation, (208) 543–4898.SUPPLEMENTARY INFORMATION: On May 4,1999, the Animal and Plant HealthInspection Service (APHIS) publishedan advance notice of proposedrulemaking (ANPR) titled ‘‘Aquaculture:Farm-Raised Fin Fish’’ in the Federal

Register (64 FR 23795–23796, DocketNo. 98–085–1). We published thisANPR after receiving petitions 1 askingus to regulate aquaculture in variousways. Many petitioners asked us todefine farmed aquatic animals aslivestock. In general, the petitionersseemed to be interested in receiving thesame services that domestic producersof livestock receive for animals movingin interstate and foreign commerce.However, based on the petitions alone,it was difficult for us to determine whatsegments of the industry want servicesand exactly what services they want. Itwas also difficult to determine theobjectives sought by the petitioners whowere requesting Federal regulation. Wepublished the ANPR in an attempt toclarify the industry’s needs, the natureof the services sought, and the concernsthe petitioners had with regard to suchregulations.

We received 55 comments 2 inresponse to the ANPR. A majority of thecommenters supported the idea ofAPHIS regulation of cultured fin fish.Unfortunately, the commentersgenerally did not clearly distinguishbetween fin fish raised for food andornamental fin fish. Commenters whowanted regulation were, however, veryclear that they want programs to preventand control disease and to supportincreased commerce, both domestic andexport.

The commenters also suggested thatany rulemaking initiated by APHIS be anegotiated rulemaking. In negotiatedrulemaking, industry representativesand other interested persons meet withAPHIS officials and draft proposedregulations together. The proposedregulations are then published forpublic comment. Negotiated rulemaking

is designed to ensure that all interestedpersons are involved together from thestart in the development of regulations.

Unfortunately, negotiated rulemakingis not suitable for all situations. It workswell when there is a small number ofinterested parties and the parties areeasy to identify. This is not the casewith aquaculture. Because theaquaculture industry is large anddiverse, we would have difficultyidentifying everyone who should berepresented in a negotiated rulemaking.In addition, many parties outside ofaquaculture would have a substantialinterest in such a rulemaking. In ourview, the number of people who wouldneed to participate in a negotiatedrulemaking would be too large andwould suggest that negotiatedrulemaking is not appropriate.Furthermore, a negotiated rulemakingwould be expensive, and APHIS doesnot have adequate funds. Therefore, wehave concluded that it would not beappropriate to pursue an aquaculturenegotiated rulemaking.

However, we have not decidedwhether to pursue aquaculturerulemaking by other means. Before wemake that decision, we want to have asmuch information as possible from allinterested persons, and we want toprovide you with as much opportunityas possible to discuss with us andinform us regarding the relevant issues.

Therefore, we are holding a series ofpublic meetings. Public meetings allowall interested parties—industryrepresentatives, producers, consumers,and others—to present their views andto exchange information amongthemselves and with APHIS.

There are no set agendas for themeetings. Any issues and concernsrelated to aquaculture and possibleAPHIS regulatory action can bediscussed. However, we would likemore information on three specificissues. These are issues that the peopleand organizations who commented onour ANPR either did not address orwere unclear about. Specifically, ifAPHIS does propose regulations: (1)Should our program be mandatory orvoluntary; (2) should we cover shellfish; and (3) should we coverornamental fin fish?

Information elicited at the meetingscould result in a new APHIS regulatoryprogram or in changes to aquaculture-

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23878 Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Notices

related services currently provided byAPHIS.

We have scheduled this publicmeeting, the fourth meeting in ourseries, for Friday, June 8, 2001, in theCommunity Meeting Room of the TwinFalls County Office Building, TwinFalls, ID. If you wish to speak at themeeting, please register in advance bycalling the Regulatory Analysis andDevelopment voice mail at (301) 734–4339. Leave a message with your name,telephone number, organization, if any,and an estimate of the time you need tospeak. You may also register at themeeting by following the instructionsprovided by an APHIS representative atthe beginning of the meeting. Startingwith the advance registrants, we willcall speakers in the order in which theyregistered.

The meeting will begin at 2 p.m. andis scheduled to end at 5 p.m. We mayend the meeting early if all theregistered speakers have had a chance tospeak and if no one else wants to speak.We may also extend the meeting or limitthe time allowed for each speaker, ifnecessary, so all interested persons havean opportunity to participate.

An APHIS representative will presideat the meeting. The meeting will berecorded. We encourage speakers topresent written statements, though it isnot required. If you choose to present awritten statement, please provide thechairperson with a copy. The completerecord, including the transcript and allwritten comments, will be available tothe public.

This meeting is the fourth in ourseries of public meetings. The firstpublic meeting was held on January 25,2001, in Lake Buena Vista, FL. Thesecond public meeting was held onFebruary 16, 2001, in Hebron, KY, andthe third public meeting was held onApril 5, 2001, in Machias, ME. We planto hold additional meetings inWashington (September 2001, inconjunction with the Pacific CoastShellfish Growers Association AnnualConference), Pennsylvania (October2001, in conjunction with thePennsylvania Aquaculture AdvisoryCommittee and PennsylvaniaAquaculture Association AnnualMeeting), Mississippi (October 2001, inconjunction with a meeting of theCatfish Farmers of America), andArkansas (October 2001, in conjunctionwith a meeting of the Catfish Farmers ofArkansas). We will publish a notice ornotices in the Federal Registerannouncing the dates, times, andlocations of the meetings.

Done in Washington, DC, this 4th day ofMay 2001.Chester A. Gipson,Acting Administrator, Animal and PlantHealth Inspection Service.[FR Doc. 01–11816 Filed 5–9–01; 8:45 am]BILLING CODE 3410–34–D


Cooperative State Research,Education, and Extension Service

Notice of Intent To Revise and Requestan Extension of a Currently ApprovedInformation Collection

AGENCY: Cooperative State Research,Education, and Extension Service,USDA.ACTION: Notice and request forcomments.

SUMMARY: In accordance with thePaperwork Reduction Act of 1995 andOffice of Management and Budget(OMB) implementing regulations, thisnotice announces the Cooperative StateResearch, Education, and ExtensionService’s (CSREES) intention to reviseand extend a currently approvedinformation collection, Form CSREES–667 ‘‘Proposal Cover Sheet,’’ and FormCSREES–668, ‘‘Project Summary.’’DATES: Comments on this notice must bereceived on or before July 16, 2001 to beassured of consideration.ADDRESSES: Address all commentsregarding this notice to Sally J. Rockey,Deputy Administrator, CompetitiveResearch Grants and AwardsManagement, CSREES, USDA, STOP2240, 1400 Independence Avenue, SW.,Washington, DC 20250–2240. E-mail:[email protected].

FOR FURTHER INFORMATION CONTACT:Sally J. Rockey, (202) 401–1761.SUPPLEMENTARY INFORMATION:

Title: Grant Application Forms for theSmall Business Innovation ResearchGrants Program.

OMB Number: 0524–0025.Expiration Date of Approval: July 31,

2001.Type of Request: Intent to revise and

extend a currently approvedinformation collection for three years.

Abstract: In 1982, the Small BusinessInnovation Research (SBIR) Programwas authorized by Pub. L. 97–219, andin 1992 reauthorized through October 1,2000, by Pub. L. 102–564. In 2000, theSBIR program was reauthorized throughSeptember 30, 2008, by Pub. L. 106–554.This legislation requires each Federalagency with a research and research anddevelopment budget in excess of $100million to establish an SBIR program.

The objectives of the SBIR Program areto stimulate technological innovation inthe private sector, strengthen the role ofsmall businesses in meeting Federalresearch and development needs,increase private sectorcommercialization of innovationsderived from USDA-supported researchand development efforts, and foster andencourage participation by women-owned and socially and economicallydisadvantaged small business firms intechnological innovation. The Programis carried out in three separate phases.The purpose of Phase I is to determinethe scientific or technical feasibility ofideas; Phase II is the principal researchor research and development effort; andPhase III is to stimulate technologicalinnovation and the national return oninvestment from research through thepursuit of commercial objectivesresulting from work carried out inPhases I and II.

USDA conducts its SBIR programthrough the use of grants awards andthese grants are administered by theAgreements and Special Projects Branchand the Grants Management Branch,Office of Extramural Programs,Competitive Research Grants andAwards Management, CSREES. Eachyear, USDA issues an SBIR programsolicitation requesting Phase Iproposals. These proposals areevaluated by peer review panels andawarded on a competitive basis. TheSBIR Program Solicitation requests thatapplicants submit proposals followingthe format outlined in the SmallBusiness Administration (SBA) PolicyDirective. This simplified andstandardized proposal format is used byall of the Federal agencies participatingin the SBIR Program in order to reducethe application burden of the smallbusiness firms that wish to apply tomore than one agency.

Before awards can be made, certaininformation is required from applicantsas part of an overall proposal package.In addition to project summaries,descriptions of the research or teachingefforts, literature reviews, curriculavitae of principal investigators, andother, relevant technical aspects of theproposed project, supportingdocumentation of an administrative andbudgetary nature also must be provided.Because of the nature of thecompetitive, peer-reviewed process, it isimportant that information fromapplicants be available in astandardized format to ensure equitabletreatment.

This program also uses formsapproved in the OMB-approvedcollection of information package 0524–0039. These forms include Form


23879Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Notices

CSREES–2004, ‘‘Budget;’’ FormCSREES–2006, ‘‘NationalEnvironmental Policy Act ExclusionsForm;’’ and Form CSREES–2008,‘‘Assurance Statement(s)—For ResearchProjects.’’

Forms CSREES–667, ‘‘Phase I andPhase II Proposal Cover Sheet;’’ andCSREES–668, ‘‘Phase I and Phase IIProject Summary’’ are used to obtainUSDA recordkeeping data, requiredcertifications, and information used torespond to inquiries from Congress,other Government agencies, and thegrantee community concerning grantprojects supported by the USDA SBIRProgram.

The following information has beencollected and will continue to becollected:

Forms CSREES–667— Identification:designates the research topic area underwhich a proposal is submitted forconsideration; USDA recordkeepingdata: provides names and addresses ofprincipal investigators and authorizedagents of small business firms; andCertifications: Provides requiredcertifications; for example, the applicantqualifies as a small business forpurposes of the SBIR Program; theapplicant qualifies as a minority anddisadvantaged and/or women-ownedsmall business.

Form CSREES–668—Projectsummary: Provides a Technical Abstractused when releasing information aboutgrant projects supported and keywordsto identify the technology/researchthrust/commercial application of theprojects.

Estimate of Burden: Public reportingburden for this collection of informationis estimated to average 5.15 hours perresponse.

Respondents: Businesses or other for-profits.

Estimated Number of Responses PerForm: 480 for Form CSREES–667 and480 for Form CSREES–668.

Estimated Number of Responses PerRespondent: 1.

Estimated Total Annual Burden onRespondents: 2,472 hours, broken downby: 672 hours for Form CSREES–667(1.4 hours per 480 respondents) and1,800 hours for Form CSREES–668 (3.75hours per 480 respondents).

Copies of this information collectioncan be obtained from Duane Alphs,Policy and Program Liaison Staff,CSREES, (202) 401–3319. E-mail:[email protected].

Comments: Comments are invited on:(a) Whether the proposed collection ofinformation is necessary for the properperformance of the functions of theagency, including whether theinformation will have practical utility;

(b) the accuracy of the agency’s estimateof the burden of the proposed collectionof information including the validity ofthe methodology and assumptions used;(c) ways to enhance the quality, utilityand clarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon those who are to respond, includingthrough the use of appropriateautomated, electronic, mechanical, orother technological collectiontechniques or other forms of informationtechnology. Comments should be sent tothe address stated in the preamble.

Comments also may be submitteddirectly to OMB and should beaddressed to: Desk Officer forAgriculture, Office of Information andRegulatory Affairs, Office ofManagement and Budget, Washington,DC 20502.

All responses to this notice will besummarized and included in the requestfor OMB approval. All comments alsowill become a matter of public record.

Done at Washington, DC, this 2d day ofMay, 2001.Colien Hefferan,Administrator, Cooperative State Research,Education, and Extension Service.[FR Doc. 01–11817 Filed 5–9–01; 8:45 am]BILLING CODE 3410–22–P


Forest Service

Fox and Crescent ReservoirMaintenance, High Uintas Wilderness,Ashley National Forest, DuchesneCounty, UT

AGENCY: Forest Service, USDA.ACTION: Notice of intent to prepare anenvironmental impact statement.

SUMMARY: Dry Gulch Irrigation Company(DGIC), holder of special use permits tooperate Fox and Crescent reservoir damsin the High Uintas Wilderness on theAshley National Forest, has requestedpermission to maintain the damstructures to correct deficiencies thatmay result in failure of the dams in thenear future. This maintenance work willrequire an assessment of environmentalconsequences, including thoseassociated with proposals to usemotorized and mechanical tools andequipment within the boundaries of theHigh Uintas Wilderness.DATES: To be most useful for earlyidentification of issues, commentsconcerning the scope of the analysisshould be received in writing by May29, 2001.

ADDRESSES: Written comments andquestions should be send to: Dave Frew,Interdisciplinary Team Leader, Attn:Fox Lake Project, Roosevelt/DuchesneRanger Districts, Ashley National Forest,244 West Highway 40, Roosevelt, Utah84066.FOR FURTHER INFORMATION CONTACT:Specific questions about the proposedproject and analysis should be directedto Dave Frew, Interdisciplinary TeamLeader, 244 West Highway 40,Roosevelt, Utah 84066.

Responsible Official: Jack Blackwell,Regional Forester, IntermountainRegion, is the responsible official forthis EIS and the Record of Decision.SUPPLEMENTARY INFORMATION: Thisproposal arose due to concerns found invarious state and federal inspections ofthese dams over the past couple ofyears. Both of these dams are over 70years old, and like all human madestructures require periodic maintenanceto insure their safe continued operation.These reservoirs are accessible only byprimitive trail—there are not roadsaccessing these facilities. In the past,these reservoirs have been accessedfrom time to time by helicopter. Thereservoirs must be maintained if storageis to continue to be allowed.

In 1984, Congress designated the areaencompassing these reservoir sites at theHigh Uintas Wilderness, furthercomplicating access by the wildernessprovision against motorized ormechanical access or the use ofmotorized or mechanical tools andequipment. The 1964 Wilderness Actprovides that motorized transport, toolsand equipment and/or mechanicalaccess may be authorized in specificcircumstances, that being when it isdetermined they are the minimumrequirement necessary for the properadministration of the area, and whenauthorized by the proper authority.

Proposed ActionDGIC proposes the following activities

to insure the proper maintenance of thedams. Both the State of UtahDepartment of Natural Resources,Division of Water Rights, and the ForestService agree that the maintenanceactivities proposed meet the technicalrequirements, and are necessary toaccomplish if the dams are to continueto be used for their intended purpose.The proposed action involves helicoptertransport to the reservoir sites formaterials and equipment, and alsoproposes on-site motorized equipmentto complete the work.

Fox LakeRepairs to the outlet pipe with consist

of slip lining the existing 36 inch



corrugated pipe with 30″ ID and a 321⁄2″OD 40 pound pressure HEPE pipe withtwo joints totaling 96 ft. 6 inches, witha stainless steel band to join the pipes.A new structure will be formed and anew concrete structure will be poured.The outlet structure may also need to bereplaced, or if not replaced, then somegrout work will be necessary. Existinghead gate controls will be removed andthe wet well will be filed with nativematerial. A new 30-inch Waterman headgate and frame assembly will beinstalled on the inlet end of the outletpipe. The southwest levee will be raisedapproximately 3 inches in elevation tomatch the elevation of the dam. Thenorth levee will be raised approximately9 inches to match the elevation of thedam. Native material from existingborrow pits are proposed to be used tocomplete this portion of the project.There may also be some work on themain dike to insure proper freeboard.

The leak at the toe of the southwestlevee will be excavated into thedownstream toe and a sand filterinstalled to stop any fine materialmovement through the dike. This sandwill be over laid with native material.

Any leaks on the upstream apron ofthe spillway will be repaired. An 8 inchthick retaining wall, three feet high, and22 feet long will be poured on thedownstream apron and will be doweledinto the existing concrete spillway andthe cracks will also be repaired. Riprapwill be placed on the downstream toprotect the spillway. All woodyvegetation will be removed from theexisting dam, levees, and dike (thisaction could take place annually or asneeded for long term maintenance.)

Crescent Lake

A new head gate frame assembly willbe installed and any repairs to the headgate or outlet pipe will be performed toensure proper operation. The cracks inthe masonry dam will be repaired usinga grout facing material and glue mixture.

The proposed action requires thefollowing materials at the reservoir sites:An oxygen and acetylene torch, 24pieces of 1⁄2 inch rebar, one generator,one generator welder, two portableelectric cement mixers, one grout pump,100 gallons of fuel, one containmenttrough, six feet of 36 inch culvert andband, two wheel barrows, two 2 inchwater pumps, sealable containers fortransportation of human waste materialsfrom the job site, 96.5 feet of HDPE pipe,a 30 inch Waterman head gate,miscellaneous lumber and forms,miscellaneous tools and supplies, andcamp equipment and supplies for thework crews.

Transporting these tools andequipment will require an estimatedminimum of 16 to 22 helicopter flights.The project is estimated to take 40–45days with work crews varying from sixto fourteen personnel. The helicopteroperation will require a staging area beestablished at a site outside thewilderness at the Reader Creekmeadows. The staging area is accessedvia the Chepeta Lake road, and thehelicopter refueling operations will takeplace at the staging area. Helicopterdrop zones will be located either on thedam itself or within close proximity, tothe work areas. If possible, drop zoneswill be within the reservoir area.

It is proposed that four saddle horsesbe at the worksite for the duration of theproject for safety reasons, and four to sixdraft horses be available for 21 days toassist with the project work. There willbe other horses used as needed fortransportation to and from the worksite.The livestock will be using forage areasto the north and west of Fox reservoir.Supplemental feed may be required forthe livestock. Campsites will beestablished t6o support up to 14 personsat one time per campsite. Campsites willbe at least one mile apart.

Alternatives

At least two and possibly three actionalternatives will be considered in theanalysis.

Alternative 1—Proposed Action (AsDescribed Above)

Alternative 2—Complete Repairs UsingPrimitive Means

This alternative will basically requirethat the needed work be done withwilderness friendly tools andequipment—minimizing or eliminatingthe proposed means of access byhelicopter and the one-site motorizedand mechanical equipment to performthe needed work. This alternative mustbe analyzed with the understanding thatchanging the proposal to the extent thatrepairs cannot effectively be made tomeet safety and other pertinentstandards will not meet the purpose andneed of the project.

Alternative 3—Modification of theProposed Action

There may be other ways toaccomplish the needed work throughsome variation or modification of theproposed action that will furtheraddress important issues or minimizeimpacts and costs of the project. Thesemodifications often become apparent asthe analysis of the project goes forwardand our publics become involved in theprocess.

Alternative 4—No Action

Under this alternative, the proposedrepairs will not be completed. This willrequire that a storage restriction be puton the Fox reservoir immediately andshortly on the Crescent reservoir. Futurework under this alternative will requireactivity to permanently stabilize thesereservoirs so as not to function as drawdown reservoirs. This alternativeeffectively eliminates the reservoirs asstorage for late season irrigation water tothe farms and ranches in the UintaBasin.

IssuesThe following is a preliminary list of

issues identified by the ID Team. Otherissues raised during public involvementwill also be discussed in this EIS. Thepreliminary issues include:

1. Impacts of the project onwilderness values.

2. Ability to use legally held waterrights.

3. Access to the sites—impacts onexisting trails.

4. Water Quality.5. Riparian Areas/Stream Conditions.6. Borrow areas and sites—material

sources.7. Rehabilitation of disturbed areas.8. Impact to wilderness visitors

including noise, dust, and opportunitiesfor solitude.

9. Impacts to wildlife resourcesincluding Threatened, Endangered andSensitive species.

10. Impacts to outfitter—guideoperations.

11. Historical integrity of the dams.

Decision To Be MadeThe decision to be made is: Should

the DGIC be allowed to effect therepairs, as proposed, on Fox andCrescent dams to allow further use ofthe reservoirs as storage for late seasonirrigation water as presently authorizedunder special use permit, and, if so,what motorized and mechanical toolsand equipment will be allowed in thedesignated High Uintas Wilderness tocomplete the project. A decision willalso be made on the location of thehelicopter-staging site outside thewilderness.

Public InvolvementPublic participation is especially

important at several points during theanalysis, particularly during initialscoping and review of the draft EIS.Individuals, organizations, federal, state,and local agencies who are interested inor affected by the decision are invited toparticipate in the scoping process. Thisinformation will be used in thepreparation of the draft EIS.



The second major opportunity forpublic input is during the review of thedraft EIS. The draft EIS is expected tobe filed with the EPA (EnvironmentalProtection Agency) and to be availablefor public review in September, 2001.At that time the EPA will publish anotice of availability of the draft EIS inthe Federal Register. The commentperiod on the draft EIS will be 45 daysfrom the date the EPA’s notice ofavailability appears in the FederalRegister. It is very important that thoseinterested in this proposed actionparticipate at that time. To be the mosthelpful, comments on the draft EISshould be as specific as possible andmay address the adequacy of thestatement or the merits of thealternatives discussed (Reviewers maywish to refer to the Council onEnvironmental Quality Regulations forimplementing the procedural provisionsof the National Environmental PolicyAct at 40 CFR 1503.3 in addressingthese points). The Forest Servicebelieves, at this early stage, it isimportant to give reviewers notice ofseveral federal court rulings related topublic participation in theenvironmental review process. First,reviewers of draft environmental impactstatements must structure theirparticipation in the environmentalreview process. First, reviewers of draftenvironmental impact statements muststructure their participation in theenvironmental review of the proposal sothat it is meaningful and alerts anagency to the reviewer’s position andcontentions. Vermont Yankee NuclearPower Corp. v. NRDC, 435 U.S. 519, 533(1978). Also environmental objectionsthat could be raised at the draft EISstage, but that are not raised until aftercompletion of the final EIS, may bewaived or dismissed by the courts. Cityof Angoon v. Hodel, (9th Circuit, 1986)and Wisconsin Heritages, Inc v. Harris,490 F. Supp. 1334, 1338 (E.D. Wis,1980). Because of these court rulings, itis very important that those interestedin this proposed action participate bythe close of the 30-day comment periodso that substantive comments andobjections are made available to theForest Service at a time when it canmeaningfully consider them andrespond to them in the final EIS.

To assist the Forest Service inidentifying and considering issues andconcerns on the proposed action,comments on the draft EIS should be asspecific as possible. It is also helpful ifcomments refer to specific pages orchapters of the draft statement.Comments may also address theadequacy of the draft EIS or the merits

of the alternates formulated anddiscussed in the statement. Reviewersmay wish to refer to the Council onenvironmental Quality Regulations forimplementing the procedural provisionsof the National Environmental PolicyAct at 40 CFR 1503.3 in addressingthese points.

After the comment period ends on thedraft EIS, the comments will beanalyzed and considered in preparingthe final EIS. The final EIS is scheduledfor completion in March, 2002.

Dated: April 16, 2001.Jack G. Troyer,Deputy Regional Forester.[FR Doc. 01–11740 Filed 5–9–01; 8:45 am]BILLING CODE 3401–11–M

DEPARTMENT OF COMMERCE

Census Bureau

School Enrollment Report

ACTION: Proposed collection; commentrequest

SUMMARY: The Department ofCommerce, as part of its continuingeffort to reduce paperwork andrespondent burden, invites the generalpublic and other Federal agencies totake this opportunity to comment onproposed and/or continuing informationcollections, as required by thePaperwork Reduction Act of 1995,Public Law 104–13 (44 U.S.C.3506(c)(2)(A)).DATES: Written comments must besubmitted on or before July 9, 2001.ADDRESSES: Direct all written commentsto Madeleine Clayton, DepartmentalPaperwork Clearance Officer,Department of Commerce, Room 6086,14th and Constitution Avenue, NW.,Washington, DC 20230 (or via theInternet at [email protected]).FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the information collectioninstrument(s) and instructions shouldbe directed to Josie Baker, U.S. CensusBureau, Room 2331, Washington, DC20233–0001, 301–457–2441,[email protected] INFORMATION:

I. AbstractEach year the U.S. Census Bureau

sends the School Enrollment Report, P–4 form to the 30 state departments ofeducation that do not publishenrollment data early enough in the yearfor us to use their published reports.Information requested includes fallpublic and nonpublic enrollment by

grade for the state and counties. In sixstates we collect year-end enrollment.The U.S. Census Bureau uses schoolenrollment data in preparing estimatesof state population. State populationestimates are used by dozens of Federalagencies for allocating Federal programfunds, as bases for rates of occurrences,and as input for Federal surveys. Stateand local governments, businesses, andthe general public use state populationestimates for planning and otherinformation uses.

II. Method of Collection

The School Enrollment Report, P–4form, is mailed each spring toapproximately 30 state educationagencies. We request fall public andnonpublic school enrollment by gradefor the state and counties. Responses arereturned and reviewed on a flow basisduring the summer and early fall. Datacollected will be used as input for thedevelopment of population estimates.The estimates are made in November,December, and January.

III. Data

OMB Number: 0607–0459.Form Number: P–4.Type of Review: Regular Review.Affected Public: State education

agencies.Estimated Number of Respondents:

30.Estimated Time Per Response: 30

minutes.Estimated Total Annual Burden

Hours: 15 hours.Estimated Total Annual Cost: @$27.25

per hour, $409.Respondent’s Obligation: Voluntary.Legal Authority: Title 13 USC, Sections

181 and 182.

IV. Request for Comments

Comments are invited on: (a) Whetherthe proposed collection of informationis necessary for the proper performanceof the functions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimate of the burden(including hours and cost) of theproposed collection of information; (c)ways to enhance the quality, utility, andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon respondents, including through theuse of automated collection techniquesor other forms of informationtechnology.

Comments submitted in response tothis notice will be summarized and/orincluded in the request for OMBapproval of this information collection;



they also will become a matter of publicrecord.

Dated: May 7, 2001.Madeleine Clayton,Departmental Paperwork Clearance Officer,Office of the Chief Information Officer.[FR Doc. 01–11812 Filed 5–9–01; 8:45 am]BILLING CODE 3510–07–P


International Trade Administration

[A–588–835]

Notice of Extension of Time Limit forPreliminary Results of AdministrativeAntidumping Review: Oil CountryTubular Goods from Japan

AGENCY: Import Administration,International Trade Administration,Department of Commerce.EFFECTIVE DATE: May 10, 2001.FOR FURTHER INFORMATION CONTACT:Doug Campau, Holly Hawkins orMaureen Flannery, AD/CVDEnforcement, Import Administration,International Trade Administration,U.S. Department of Commerce, 14thStreet and Constitution Avenue, NW.,Washington DC 20230; telephone: (202)482–1395, (202) 482–0414 or (202) 482–3020, respectively.

The Applicable Statute

Unless otherwise indicated, allcitations to the statute are references tothe provisions effective January 1, 1995,the effective date of the amendmentsmade to the Tariff Act of 1930 (the Act)by the Uruguay Round Agreements Act.In addition, unless otherwise indicated,all citations to the Department’sregulations are to the currentregulations, codified at 19 CFR part 351(2000).

Background

In accordance with 19 CFR§ 351.213(b)(2), the Department receiveda timely request from petitioner U.S.Steel Group that we conduct anadministrative review of the sales ofSumitomo Metal Industries. OnSeptember 29, 2000, the Departmentinitiated an administrative review of theantidumping duty order on oil countrytubular goods (OCTG) for the period ofreview (POR) of August 1, 1999 to July31, 2000, in order to determine whethermerchandise imported into the UnitedStates is being sold at dumped prices.

Extension of Time Limits forPreliminary Results

Because of the complexity and timingof certain issues in this case, it is not

practicable to complete this reviewwithin the time limits mandated bysection 751(a)(3)(A) of the Act andsection 351.213(h) of the Department’sregulations. See Memorandum fromBarbara E. Tillman to Joseph A.Spetrini, dated April 27, 2001 (on file inthe public file of the Central RecordsUnit, Room B–099 of the Department ofCommerce).

Therefore, in accordance with section751(a)(3)(A) of the Act, the Departmentis extending the time limits for thepreliminary results to no later thanAugust 31, 2001.

Dated: May 2, 2001.Joseph A. Spetrini,Deputy Assistant Secretary for AD/CVDEnforcement III.[FR Doc. 01–11843 Filed 5–9–01; 8:45 am]BILLING CODE 3510–DS–P


National Oceanic and AtmosphericAdministration

[I.D. 050301G]

Endangered Species; Permits

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Receipt of an application for ascientific research permit (1303);Receipt of request to modify researchpermit 1245; NMFS has issued permit1297; NMFS has issued an amendmentof enhancement permit 1237.

SUMMARY: Notice is hereby given of thefollowing actions regarding permits fortakes of endangered and threatenedspecies for the purposes of scientificresearch and/or enhancement under theEndangered Species Act (ESA): NMFShas received an application for ascientific research permit from Dr. R.Michael Laurs, of Southwest FisheriesScience Center (SWFSC); NMFS hasreceived a request to modify permit1245 from Mr. Bruce Stender of theSouth Carolina Department of NaturalResources; NMFS has issued permit1297 to Dr. Peter Dutton of the NMFS- Southwest Fisheries Science Centerand an amendment of permit 1237 tothe Walla Walla District of the U.S.Army Corps of Engineers at WallaWalla, WA.DATES: Comments or requests for apublic hearing on any of the newapplications or modification requestsmust be received at the appropriateaddress or fax number no later than 5p.m. eastern standard time on June 11,2001.

ADDRESSES: Written comments on any ofthe new applications or modificationrequests should be sent to theappropriate office as indicated below.Comments may also be sent via fax tothe number indicated for the applicationor modification request. Comments willnot be accepted if submitted via e-mailor the Internet. The applications andrelated documents are available forreview in the indicated office, byappointment:

For permits 1245, 1297, 1303:Endangered Species Division, F/PR3,1315 East West Highway, Silver Spring,MD 20910 (phone:301–713–1401, fax:301–713–0376).

For permits 1237: Protected ResourcesDivision, F/NWO3, 525 NE OregonStreet, Suite 500, Portland, OR 97232–2737 (phone: 503–230–5400, fax: 503–230–5435).

Documents may also be reviewed byappointment in the Office of ProtectedResources, F/PR3, NMFS, 1315 East-West Highway, Silver Spring, MD20910–3226 (phone:301–713–1401).FOR FURTHER INFORMATION CONTACT: Forpermits 1245, 1297, 1303: Terri Jordan,Silver Spring, MD (phone: 301–713–1401, fax: 301–713–0376, e-mail:[email protected])

For permits 1237: Robert Koch,Portland, OR (ph: 503–230–5424, fax:503–230–5435, e-mail:[email protected]).


Authority

Issuance of permits and permitmodifications, as required by theEndangered Species Act of 1973 (16U.S.C. 1531–1543) (ESA), is based on afinding that such permits/modifications:(1) are applied for in good faith; (2)would not operate to the disadvantageof the listed species which are thesubject of the permits; and (3) areconsistent with the purposes andpolicies set forth in section 2 of theESA. Scientific research and/orenhancement permits are issued underSection 10(a)(1)(A) of the ESA.Authority to take listed species issubject to conditions set forth in thepermits. Permits and modifications areissued in accordance with and aresubject to the ESA and NMFSregulations governing listed fish andwildlife permits (50 CFR parts 222–226).

Those individuals requesting ahearing on an application listed in thisnotice should set out the specificreasons why a hearing on thatapplication would be appropriate (seeADDRESSES). The holding of suchhearing is at the discretion of theAssistant Administrator for Fisheries,



NOAA. All statements and opinionscontained in the permit actionsummaries are those of the applicantand do not necessarily reflect the viewsof NMFS.

Species Covered in this Notice

The following species andevolutionary significant units (ESUs) arecovered in this notice:

Sea turtles

Threatened and endangered Greenturtle (Chelonia mydas)

Endangered Hawksbill turtle(Eretmochelys imbricata)

Endangered Kemp’s ridley turtle(Lepidochelys kempii)

Endangered Leatherback turtle(Dermochelys coriacea)

Threatened Loggerhead turtle (Carettacaretta)

Threatened and endangered Oliveridley turtle (Lepidochelys olivacea)

Fish

Sockeye salmon (Oncorhynchusnerka): endangered Snake River (SnR).

Chinook salmon (O. tshawytscha):endangered, naturally produced andartificially propagated, upper ColumbiaRiver (UCR) spring; threatened,naturally produced and artificiallypropagated, SnR spring/summer.

Steelhead (O. mykiss): endangered,naturally produced and artificiallypropagated, UCR; threatened SnR;threatened middle Columbia River.

New Applications Received

Application 1303

The applicant requests authorizationto allow take of listed sea turtles whileconducting experiments on methods forreducing sea turtle take by longlinefisheries in the Pacific Ocean and toallow import of living, deeply hookedsea turtles for treatment andrehabilitation. The applicant proposesto take a total of 15 green, 43leatherback, 221 loggerhead and 24olive ridley turtles over the three-yearlife of the permit. This application isavailable for download and review fromthe Office of Protected Resourcespermitting web site: http://www.nmfs.noaa.gov/prot—res/PR3/Permits/ESAPermit.html.

Modification Requests Received

Permit #1245

The applicant requests a modificationto Permit 1245. Permit 1245 authorizesthe take of listed sea turtles for scientificresearch purposes. Permit #1245authorizes the take of 250 loggerhead,10 green, 50 Kemp’s ridley, fivehawksbill and one leatherback turtles

annually. Modification #2 wouldauthorize researchers to intubate andventilate a turtle verified to beunconscious, allow researchers tocollect skin biopsies from each turtle,collect an additional biopsy of anyabnormal growth and to collect a keratinsample from the carapace of each turtlefor mercury content analysis.

Permits and Modified Permits Issued

Permit #1297

Notice was published on March 5,2001 (66 FR 13305) that DonnaMcDonald, of Ocean Planet Research,Incorporated applied for a scientificresearch permit (1297).

The purpose of this project is tocontinue long-term monitoring of thestatus of sea turtles in San Diego Bay.Numbers present, species, size, sex,health status, and presence or absenceof tag will be recorded. Permit 1297 wasissued on April 27, 2001, authorizingtake of listed species. Permit 1297expires May 31, 2006.

Permit #1237

Notice was published on February 16,2000 (65 FR 7855) that the Corpsapplied for an enhancement permit(1237). Permit 1237 was issued to theCorps on March 22, 2001 (see 66 FR18447, April 9, 2001). Permit 1237authorizes the Corps annual takes ofESA-listed Snake River salmon andsteelhead associated with transportingjuvenile anadromous fish around thedams and past the reservoirs on themainstem lower Snake and ColumbiaRivers in the Pacific Northwest. Thepurpose of the Corps’ Juvenile FishTransportation Program is to increasejuvenile fish survival over thealternative of in-river passage, givenexisting in-river migratory conditions.On April 26, 2001, NMFS issued anamendment of enhancement permit1237. For the permit amendment, theCorps is authorized takes of ESA-listedfish species associated with juvenilefish transport at McNary Dam on thelower Columbia River during the spring2001 juvenile salmonid outmigrationseason. The Corps requested theadditional ESA-listed fish takes(associated with spring transport atMcNary Dam) in its original permitapplication (see 65 FR 7855, February16, 2000). Since the beginning of 2001,forecasted river conditions andanticipated estimates of the projectpassage survival of juvenile fishmigrating in the lower Columbia Riverduring 2001 have progressivelydeteriorated. It now appears that thesurvival rate of spring-migratingjuvenile salmonids between McNary

Dam and Bonneville Dam may be lowerthan previously expected for the 2001juvenile salmonid outmigration season.Therefore, NMFS has determined thatspring transport at McNary Dam by theCorps will not operate to thedisadvantage of the ESA-listed fish in2001. The Corps will load the juvenilefish into aerated trucks and barges fortransportation to below Bonneville Damon the Columbia River. Furtherhandling of the fish does not occur,except for loading via raceways or whenthe fish are handled for monitoringpurposes by Corps personnel or forscientific research purposes byindividuals holding separate takeauthorizations. The amendment is validfor the duration of Permit 1237.However, the conduct of springtransport at McNary Dam in future yearswill be subject to annual approval byNMFS. Additional annual takes of ESA-listed adult fish associated withhandling fallbacks at the juvenile fishtransportation facility at McNary Damare also authorized by the permitamendment. Permit 1237 expires onDecember 31, 2005.

Dated: May 4, 2001.Chris Mobley,Acting Chief, Endangered Species Division,Office of Protected Resources, NationalMarine Fisheries Service.[FR Doc. 01–11839 Filed 5–9–01; 8:45 am]BILLING CODE 3510–22–S



[I.D.050101E]

Endangered Species; Permit 1067

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Receipt of application to modifypermit 1067.

SUMMARY: Notice is hereby given of thefollowing action regarding permits fortakes of endangered and threatenedspecies for the purposes of scientificresearch and/or enhancement. NMFShas received an application fromCalifornia Department of Fish andGame, Sacramento, CA to modify permit1067.DATES: Comments or requests for apublic hearing on any of the newapplications or modification requestsmust be received at the appropriateaddress or fax number (see ADDRESSES)no later than 5 p.m. Pacific daylighttime on June 11, 2001.



ADDRESSES: Written comments on any ofthe new applications or modificationrequests should be sent to ProtectedResources Division, NMFS, 777 SonomaAvenue, Room 325, Santa Rosa, CA95404–6528. Comments may also besent via fax to (707) 578–3435.Comments will not be accepted ifsubmitted via e-mail or the Internet.

The application and relateddocuments are available for review inthe following office, by appointment:Office of Protected Resources, F/PR3,NMFS, 1315 East-West Highway, SilverSpring, MD 20910–3226 (301–713–1401).

FOR FURTHER INFORMATION CONTACT:Permits Coordinator, ProtectedResources Division, (707–575–6053).SUPPLEMENTARY INFORMATION:

Authority

Issuance of permits and permitmodifications, as required by theEndangered Species Act of 1973 (16U.S.C. 1531-1543) (ESA), is based on afinding that such permits/modificationsare (1) applied for in good faith; (2)would not operate to the disadvantageof the listed species which are thesubject of the permits; and (3) areconsistent with the purposes andpolicies set forth in section 2 of theESA. Authority to take listed species issubject to conditions set forth in thepermits. Permits and modifications areissued in accordance with and aresubject to the ESA and NMFSregulations governing listed fish andwildlife permits (50 CFR parts 222-226).

Those individuals requesting ahearing on an application listed in thisnotice should set out the specificreasons why a hearing on thatapplication would be appropriate (seeADDRESSES). The holding of suchhearing is at the discretion of theAssistant Administrator for Fisheries,NOAA. All statements and opinionscontained in the permit actionsummaries are those of the applicantand do not necessarily reflect the viewsof NMFS.

Species Covered in This Notice

The following species andevolutionarily significant units (ESU’s)are covered in this notice: ThreatenedCentral California Coast (CCC) steelheadtrout (Oncorhynchus mykiss),threatened (CCC) coho salmon(Oncorhynchus kisutch), threatened,California Coastal (CC) chinook salmon(Oncorhynchus tshawytscha).

Modification Requests Received

The California Department of Fishand Game (CDFG) requests a

modification to permit 1067 for takes ofadult and juvenile threatened CCC cohosalmon (Oncorhynchus kisutch)associated with a proposal to develop aconservation hatchery program for cohosalmon at the Congressman Don ClausenFish Hatchery at Warm Springs Dam inSonoma County, CA. The purpose ofthis program is to prevent extirpation ofportions of the CCC coho salmon ESUby restoring lost or declining stocks andto provide a mechanism to conservepotential broodstock of CCC cohosalmon. The overall goal of the programis to restore self-sustaining and self-regulating stocks of coho salmon to theCCC coho salmon ESU. Presently,permit 1067 authorizes intentional takesof adult and juvenile CCC coho salmonfor research projects throughout the CCCcoho salmon ESU. This requestedmodification would add additionalintentional takes of adult and juvenileCCC coho salmon to the CDFG permitand include authorization to implementan enhancement program. Theseactivities may also result in incidentaltakes of threatened CCC steelhead (O.mykiss) and threatened, CaliforniaCoastal (CC) chinook salmon, (O.tshawytscha). This requestedmodification to permit 1067 wouldauthorize intentional take of adult andjuvenile CCC coho salmon andincidental take of CCC steelhead and CCchinook salmon. Permit 1067 expires onJune 30, 2002.

Dated: May 4, 2001.Chris Mobley,Acting Chief, Endangered Species Division,Office of Protected Resources, NationalMarine Fisheries Service.[FR Doc. 01–11841 Filed 5–9–01; 8:45 am]BILLING CODE 3510–22–S



[I.D. 042501C]

Marine Mammals; File No. 995-1608

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Issuance of permit.

SUMMARY: Notice is hereby given thatMr. Thomas F. Norris, ScienceApplications International Corp., 3990Old Town Avenue, Suite 105A, SanDiego, California 92110, has been issueda permit to take gray (Eschrichtiusrobustus), minke (Balaenopteraacutorostrata), and Bryde’s

(Balaenoptera edeni) whales forpurposes of scientific research.

ADDRESSES: The permit and relateddocuments are available for reviewupon written request or by appointmentin the following office(s):

Permits and Documentation Division,Office of Protected Resources, NMFS,1315 East-West Highway, Room 13705,Silver Spring, MD 20910; phone(301)713–2289; fax (301) 713–0376;

Northwest Region, NMFS, 7600 SandPoint Way NE, BIN C15700, Bldg. 1,Seattle, WA 98115–0700; phone (206)526–6150; fax (206) 526–6426;

Southwest Region, NMFS, 501 WestOcean Blvd., Suite 4200, Long Beach,CA 90802–4213; phone (562) 980–4001;fax (562) 980–4018; and

Protected Species Coordinator, PacificArea Office, NMFS, 1601 KapiolaniBlvd., Rm, 1110, Honolulu, HI 96814–4700; phone (808) 973–2935; fax (808)973–2941.

FOR FURTHER INFORMATION CONTACT:Tammy Adams or Ruth Johnson,(301)713–2289.

SUPPLEMENTARY INFORMATION: OnDecember 21, 2000, notice waspublished in the Federal Register (65FR 80420) that a request for a scientificresearch permit to take gray(Eschrichtius robustus), minke(Balaenoptera acutorostrata), Bryde’s(Balaenoptera edeni), blue(Balaenoptera musculus), fin(Balaenoptera physalus), and humpback(Megaptera novaengliae) whales hadbeen submitted by the above-namedindividual. The requested permit hasbeen issued for the three non-endangered species of whale (gray,minke, and Bryde’s) only, under theauthority of the Marine MammalProtection Act of 1972, as amended (16U.S.C. 1361 et seq.), and the RegulationsGoverning the Taking and Importing ofMarine Mammals (50 CFR part 216).The request for a permit related to thethree endangered species of whale (blue,fin, and humpback) is deferred pendingreceipt of a report of the effects of thetags on the non-endangered species.

Dated: May 4, 2001.

Ann D. Terbush,Chief, Permits and Documentation Division,Office of Protected Resources, NationalMarine Fisheries Service.[FR Doc. 01–11840 Filed 5–9–01; 8:45 am]

BILLING CODE 3510–22–S



COMMITTEE FOR THEIMPLEMENTATION OF TEXTILEAGREEMENTS

Request for Public Comment on ShortSupply Request under the AfricanGrowth and Opportunity Act (AGOA)and United States–Caribbean BasinTrade Partnership Act (CBTPA)

May 8, 2001.

AGENCY: Committee for theImplementation of Textile Agreements(CITA).

ACTION: Request for public commentsconcerning a request for a determinationthat certain yarns of 55 percentpolyester staple fibers and 45 percentworsted wool cannot be supplied by thedomestic industry in commercialquantities in a timely manner.

FOR FURTHER INFORMATION CONTACT: LoriE. Mennitt, International TradeSpecialist, Office of Textiles andApparel, U.S. Department of Commerce,(202) 482–3400.SUMMARY: On May 4, 2001 the Chairmanof CITA received a petition fromStillwater Sales, Inc./Metcalf Bros. andCompany alleging that yarns of 55percent polyester staple fibers and 45percent worsted wool, 1, 2, and 3 plyyarns, in their natural (undyed) state orin their stock dyed state (fiber dyed),with 12 to 20 twists per inch, and insizes of 1/15 to 1/30, 2/30 to 2/60, and3/48 to 3/60 worsted count (1/17 to 1/34, 2/34 to 2/68 and 3/54 to 3/68 metriccount), classified in subheading5107.20.6000 of the Harmonized TariffSchedule of the United States (HTSUS),cannot be supplied by the domesticindustry in commercial quantities in atimely manner and requesting that thePresident proclaim that apparel articlesof woven U.S. formed-fabric of suchyarns be eligible for preferentialtreatment under the AGOA and theCBTPA. CITA hereby solicits publiccomments on this request, in particularwith regard to whether these yarns canbe supplied by the domestic industry incommercial quantities in a timelymanner. Comments must be submittedby May 25, 2001 to the Chairman,Committee for the Implementation ofTextile Agreements, Room 3001, UnitedStates Department of Commerce,Washington, D.C. 20230.


Authority: Section 112(b)(5)(B) of theAGOA; Section 213(b)(2)(A)(v)(II) of theCaribbean Basin Economic Recovery Act, asadded by Section 211(a) of the CBTPA;Sections 1 and 6 of Executive Order No.13191 of January 17, 2001.

BackgroundThe AGOA and the CBTPA provide

for quota- and duty-free treatment forqualifying textile and apparel products.Such treatment is generally limited toproducts manufactured from yarns orfabrics formed in the United States or abeneficiary country. The AGOA and theCBTPA also provide for quota- andduty-free treatment for apparel articlesthat are both cut (or knit-to-shape) andsewn or otherwise assembled in one ormore AGOA or CBTPA beneficiarycountries from fabric or yarn that is notformed in the United States or abeneficiary country, if it has beendetermined that such fabric or yarnscannot be supplied by the domesticindustry in commercial quantities in atimely manner and the President hasproclaimed such treatment. In ExecutiveOrder No. 13191, the Presidentdelegated to CITA the authority todetermine whether yarns or fabricscannot be supplied by the domesticindustry in commercial quantities in atimely manner under the AGOA and theCBTPA and directed CITA to establishprocedures to ensure appropriate publicparticipation in any such determination.On March 6, 2001, CITA publishedprocedures that it will follow inconsidering requests. 66 FR 13502.

On May 4, 2001 the Chairman of CITAreceived a petition from StillwaterSales, Inc./Metcalf Bros. and Companyalleging that yarns of 55 percentpolyester staple fibers and 45 percentworsted wool, 1, 2, and 3 ply yarns, intheir natural (undyed) state or in theirstock dyed state (fiber dyed), with 12 to20 twists per inch, and in sizes of 1/15to 1/30, 2/30 to 2/60, and 3/48 to 3/60worsted count (1/17 to 1/34, 2/34 to2/68 and 3/54 to 3/68 metric count)classified in subheading 5107.20.6000 ofthe HTSUS, cannot be supplied by thedomestic industry in commercialquantities in a timely manner, andrequesting that the President proclaimquota–and duty–free treatment underthe AGOA and the CBTPA for apparelarticles that are cut and sewn in one ormore AGOA or CBTPA beneficiarycountries from woven U.S.–formedfabric of such yarns.

CITA is soliciting public commentsregarding this request, particularly withrespect to whether these yarns can besupplied by the domestic industry incommercial quantities in a timelymanner. Also relevant is whether otheryarns that are supplied by the domesticindustry in commercial quantities in atimely manner are substitutable forthese yarns for purposes of the intendeduse. Comments must be received nolater than May 25, 2001. Interestedpersons are invited to submit six copies

of such comments or information to theChairman, Committee for theImplementation of Textile Agreements,room 3100, U.S. Department ofCommerce, 14th and ConstitutionAvenue, N.W., Washington, DC 20230.

If a comment alleges that these yarnscan be supplied by the domesticindustry in commercial quantities in atimely manner, CITA will closelyreview any supporting documentation,such as a signed statement by amanufacturer of the yarn stating that itproduces the yarn that is in the subjectof the request, including the quantitiesthat can be supplied and the timenecessary to fill an order, as well as anyrelevant information regarding pastproduction.

CITA will protect any businessconfidential information that is markedbusiness confidential from disclosure tothe full extent permitted by law. CITAwill make available to the public non-confidential versions of the request andnon–confidential versions of any publiccomments received with respect to arequest in room 3100 in the HerbertHoover Building, 14th and ConstitutionAvenue, N.W., Washington, DC 20230.Persons submitting comments on arequest are encouraged to include a non-confidential version and a non-confidential summary.

J. Hayden Boyd,Acting Chairman, Committee for theImplementation of Textile Agreements.[FR Doc.01–11905 Filed 5–8–01; 1:31 pm]BILLING CODE 3510–DR–F

COMMITTEE FOR THEIMPLEMENTATION OF TEXTILEAGREEMENTS

Adjustment of an Import Limit forCertain Cotton Textile ProductsProduced or Manufactured in theRepublic of Korea

May 7, 2001.

AGENCY: Committee for theImplementation of Textile Agreements(CITA).ACTION: Issuing a directive to theCommissioner of Customs reducing alimit.

EFFECTIVE DATE: May 10, 2001.FOR FURTHER INFORMATION CONTACT: RossArnold, International Trade Specialist,Office of Textiles and Apparel, U.S.Department of Commerce, (202) 482–4212. For information on the quotastatus of this limit, refer to the QuotaStatus Reports posted on the bulletinboards of each Customs port, call (202)927–5850, or refer to the U.S. Customs



1The limit has not been adjusted to account forany imports exported after December 31, 2000.

website at http://www.customs.gov. Forinformation on embargoes and quota re-openings, refer to the Office of Textilesand Apparel website at http://otexa.ita.doc.gov.SUPPLEMENTARY INFORMATION:

Authority: Section 204 of the AgriculturalAct of 1956, as amended (7 U.S.C. 1854);Executive Order 11651 of March 3, 1972, asamended.

The current limit for Category 345 inGroup II is being reduced forcarryforward used.

A description of the textile andapparel categories in terms of HTSnumbers is available in theCORRELATION: Textile and ApparelCategories with the Harmonized TariffSchedule of the United States (seeFederal Register notice 65 FR 82328,published on December 28, 2000). Alsosee 65 FR 69740, published onNovember 20, 2000.

J. Hayden Boyd,Acting Chairman, Committee for theImplementation of Textile Agreements.

Committee for the Implementation of TextileAgreementsMay 7, 2001.

Commissioner of Customs,

Department of the Treasury, Washington, DC20229

Dear Commissioner: This directiveamends, but does not cancel, the directiveissued to you on November 14, 2000, by theChairman, Committee for the Implementationof Textile Agreements. That directiveconcerns imports of certain cotton, wool,man–made fiber, silk blend and othervegetable fiber textiles and textile productsproduced or manufactured in the Republic ofKorea and exported during the twelve-monthperiod which began on January 1, 2001 andextends through December 31, 2001.

Effective on May 10, 2001, you are directedto reduce the current limit for Category 345in Group II to 133,919 dozen 1, as providedfor under the Uruguay Round Agreement onTextiles and Clothing.

The Committee for the Implementation ofTextile Agreements has determined that thisaction falls within the foreign affairsexception to the rulemaking provisions of 5U.S.C. 553(a)(1).Sincerely,J. Hayden Boyd,Acting Chairman, Committee for theImplementation of Textile Agreements.[FR Doc. 01–11806 Filed 5–9–01; 8:45 am]BILLING CODE 3510–DR–S

DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 01–05]

36(b)(1) Arms Sales Notification

AGENCY: Defense Security CooperationAgency, DOD.ACTION: Notice.

SUMMARY: The Department of Defense ispublishing the unclassified text of asection 36(b)(1) arms sales notification.This is published to fulfill therequirements of section 155 of Pub. L.104–164 dated July 21, 1996.FOR FURTHER INFORMATION CONTACT: Ms.J. Hurd, DSCA/COMPT/RM, (703) 604–6575.

The following is a copy of a letter tothe Speaker of the House ofRepresentatives, Transmittal 01–05 withattached transmittal, policy justification,and Sensitivity of Technology.

Dated: May 4, 2001.L.M. Bynum,Alterate OSD Federal Register Liaison Officer,Department of Defense.

BILLING CODE 5001–08–M











[FR Doc. 01–11757 Filed 5–9–01; 8:45 am]BILLING CODE 5001–08–C





AGENCY: Defense Security CooperationAgency, DOD.

ACTION: Notice.

SUMMARY: The Department of Defense ispublishing the unclassified text of asection 36(b)(1) arms sales notification.This is published to fulfill therequirements of section 155 of Pub. L.104–164 dated July 21, 1996.

FOR FURTHER INFORMATION CONTACT: Ms.J. Hurd, DSCA/COMPT/RM, (703) 604–6575.

The following is a copy of a letter tothe Speaker of the House ofRepresentatives, Transmittal 01–06 withattached transmittal and policyjustification.

Dated: May 4, 2001.

L.M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense.













AGENCY: Defense Security CooperationAgency, DOD.

ACTION: Notice.

SUMMARY: The Department of Defense ispublishing the unclassified text of asection 36(b)(1) arms sales notification.This is published to fulfill therequirements of section 155 of Pub. L.104–164 dated July 21, 1996.

FOR FURTHER INFORMATION CONTACT: Ms.J. Hurd, DSCA/COMPT/RM, (703) 604–6575.

The following is a copy of a letter tothe Speaker of the House ofRepresentatives, Transmittal 01–08 withattached transmittal, policy justification,and Sensitivity of Technology.

Dated: May 4, 2001.

L.M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense.













Defense Science Board

AGENCY: Department of Defense.ACTION: Notice of Advisory CommitteeMeetings.

SUMMARY: The Defense Science Board(DSB) Task Force on Chemical WarfareDefense will meet in closed session onMay 31, 2001, and June 1, 2001, atSAIC, Inc., 4001 N. Fairfax Drive,Arlington, VA 22201. The Task Forcewill assess the possibility of controllingthe risk and consequences of a chemicalwarfare (CW) attack to acceptablenational security levels within the nextfive years.

The mission of the Defense ScienceBoard is to advise the Secretary ofDefense and the Under Secretary ofDefense for Acquisition, Technology &Logistics on scientific and technicalmatters as they affect the perceivedneeds of the Department of Defense. Atthis meeting, the Task Force will assesscurrent national security and military

objectives with respect to CW attacks;CW threats that significantly challengethese objectives today and in the future;the basis elements (R&D, materiel,acquisition, personnel, training,leadership) required to control risk andconsequences to acceptable levels,including counter-proliferation;intelligence, warning, disruption;tactical detection and protection (activeand passive); consequence management;attribution and deterrence; and policy.The Task Force will also assess thetesting and evaluation necessary todemonstrate and maintain the requiredcapability and any significantimpediments to accomplishing this goal.

In accordance with Section 10(d) ofthe Federal Advisory Committee Act,Pub. L. 92–463, as amended (5 U.S.C.App. II), it has been determined that thisDefense Science Board meetingconcerns matters listed in 5 U.S.C.552b(c)(1), and that accordingly thismeeting will be closed to the public.

Dated: May 4, 2001.

L.M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense.[FR Doc. 01–11760 Filed 5–9–01; 8:45 am]



Department of the Air Force

Public Meeting With the CommunityCollege of the Air Force (CCAF) Boardof Visitors To Review and DiscussAcademic Policies and Issues Relativeto the Operation of the College

AGENCY: Department of the Air Force,DoD.ACTION: Notice of meeting.

SUMMARY: The CCAF Board of Visitorswill hold a meeting to review anddiscuss academic policies and issuesrelative to the operation of the college.Agenda items include a review of theoperations of the CCAF and an updateon the activities of the CCAF PolicyCouncil.

Members of the public who wish tomake oral or written statements at themeeting should contact First LieutenantMatthew M. Groleau, DesignatedFederal Officer for the Board, at theaddress below no later than 4:00 p.m. onAugust 1, 2001. Please mail orelectronically mail all requests.Telephone requests will not be honored.The request should identify the name ofthe individual who will make thepresentation and an outline of the issues



to be addressed. A minimum of 35copies of the presentation materialsmust be given to First Lieutenant MattGroleau no later than 3 days prior to thetime of the board meeting fordistribution. Visual aids must besubmitted to First Lieutenant MattGroleau on a 31⁄2-inch computer disk inMicrosoft PowerPoint format no laterthan 4:00 p.m. on August 1, 2001 toallow sufficient time for virus scanningand formatting of the slides.DATES: The meeting will be held onTuesday, August 21, 2001 at 8:00 a.m.in the First Floor Conference Room,Community College of the Air Force,Building 836, 130 West MaxwellBoulevard, Maxwell Air Force Base,Alabama 36112.FOR FURTHER INFORMATION CONTACT: FirstLieutenant Matt Groleau, (334) 953–7322, Community College of the AirForce, 130 West Maxwell Boulevard,Maxwell Air Force Base, Alabama,36112–6613, or through electronic mailat [email protected].

Janet A. Long,Air Force Federal Register Liaison Officer.[FR Doc. 01–11819 Filed 5–9–01; 8:45 am]BILLING CODE 5001–05–U


Department of the Army

Notice of Availability of the Fort SamHouston and Camp Bullis Master PlanDraft Programmatic EnvironmentalImpact Statement

AGENCY: Department of the Army, DoD.ACTION: Notice of availability.

SUMMARY: This announces theavailability of the Fort Sam Houston andCamp Bullis Master Plan DraftProgrammatic Environmental ImpactStatement (DPEIS), which assesses thepotential environmental impacts ofimplementing three master planningalternatives. Alternative 1 (No ActionAlternative) includes the continuationof: The currently identified stationedpopulation reductions, as reflected inthe Army Stationing and InstallationPlan; the projected reductions in theReal Property Maintenance Activitybudget program for facility maintenanceand repair; the ‘‘zero investment’’maintenance expenditures for vacanthistorical facilities, and the projectedreductions in the Base Operationsbudget program for utilities and otherengineering services. Alternative 2(Reuse of Facilities and Property byFederal Users) would result in anadaptive reuse of currently vacanthistorical facilities using the existing

appropriated funds process. This maybeaccomplished by bringing to Fort SamHouston: Additional military missionsthrough individual stationing decisionsthat take advantage of the capabilities ofFort Sam Houston; and/or additionalfederal missions through individualstationing decisions that take advantageof the capabilities of Fort Sam Houston.Alternative 3 (Reduction ofUnderutilized/Unutilized Propertythrough Lease, Sale, or Removal) wouldresult in the reduction of underutilized/unutilized facilities and property onFort Sam Houston and Camp Bullis, inaddition to changes in the Land UsePlan. The reduction in underutilized/unutilized property may beaccomplished through: Outgrant leasesto the city, county, state, privatecitizens, businesses, or investors; sale tothe city, county, state, private citizens,businesses, or investors; removal fromthe site; or demolition. The Army mayselect any one alternative or acombination of alternatives for futureactivities and planning at Fort SamHouston.DATES: The comment period for theDPEIS will end 45 days after publicationof the notice of availability in theFederal Register by the U.S.Environmental Protection Agency.ADDRESSES: To obtain copies of theDPEIS, contact Ms. Jackie Schlatter,PEIS Project Manager, ATTN: MCCS-BPW-E, 2202 15th Street (Bldg. 4196),Fort Sam Houston, Texas 78234–5007.FOR FURTHER INFORMATION CONTACT: Ms.Jackie Schlatter at (210) 221–5093, byemail [email protected], orby fax at (210) 221–5419.SUPPLEMENTARY INFORMATION: Thisdocument includes analyses of thepotential environmental consequencesthat the alternative actions may have onland use and visual resources,transportation, utilities, earth resources,air quality, water resources, biologicalresources, cultural resources, socio-economics, noise, and hazardousmaterials and items of special concern.The findings indicate that potentialenvironmental impacts from thealternatives may result in some impactsto cultural resources.

A public meeting will be conductedby the Army to receive comments on theDPEIS. Additional informationregarding the public meeting will beprovided in local and regionalnewspapers.

The DPEIS has been provided to thefollowing libraries for public access tothe document: Fort Sam HoustonLibrary, Bldg. 1222, 2601 Harney, FortSam Houston, TX 78234 and the San

Antonio Public Library, 600 SoledadPlaza, San Antonio, TX 78205.

Dated: May 4, 2001.Raymond J. Fatz,Deputy Assistant Secretary of the Army(Environment, Safety and OccupationalHealth), OASA(I&E).[FR Doc. 01–11805 Filed 5–9–01; 8:45 am]BILLING CODE 3710–08–M


Department of the Army

Privacy Act of 1974; System ofRecords

AGENCY: Department of the Army, DOD.ACTION: Notice to alter a system ofrecords.

SUMMARY: The Department of the Armyis proposing to consolidate threesystems of records under one notice. Asa result of the consolidation, tworoutine uses are being added to thesystem of records. The routine uses willpermit the disclosure of information tothe Federal Aviation Administration toobtain flight certification/ licensing; andto the Department of Veterans Affairs.DATES: This proposed action will beeffective without further notice on June11, 2001 unless comments are receivedwhich result in a contrarydetermination.

ADDRESSES: Records ManagementDivision, U.S. Army RecordsManagement and DeclassificationAgency, ATTN: TAPC–PDD–RP, Stop5603, 6000 6th Street, Ft. Belvoir, VA22060–5603.FOR FURTHER INFORMATION CONTACT: Ms.Janice Thornton at (703) 806–4390 orDSN 656–4390 or Ms. Christie King at(703) 806–3711 or DSN 656–3711.SUPPLEMENTARY INFORMATION: TheDepartment of the Army systems ofrecords notices subject to the PrivacyAct of 1974, (5 U.S.C. 552a), asamended, have been published in theFederal Register and are available fromthe address above.

The proposed system report, asrequired by 5 U.S.C. 552a(r) of thePrivacy Act of 1974, as amended, wassubmitted on April 3, 2001, to theHouse Committee on GovernmentReform, the Senate Committee onGovernmental Affairs, and the Office ofManagement and Budget (OMB)pursuant to paragraph 4c of Appendix Ito OMB Circular No. 1–130, ‘‘FederalAgency Responsibilities for MaintainingRecords About Individuals,’’ datedFebruary 8, 1996 (February 20, 1996, 61FR 6427).



Dated: May 3, 2001.L.M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense.

DELETIONS:

A0145–1a TRADOC–ROTC

SYSTEM NAME:ROTC Applicant/Member Records

(July 15, 1997, 62 FR 37894).

REASON:Records are now covered under

A0145–1 TRADOC, Army ReserveOfficer’s Training Corps (ROTC) andFinancial Assistance Programs.

A0145–1b TRADOC–ROTC

SYSTEM NAME:ROTC Financial Assistance

(Scholarship) Application File (July 15,1997, 62 FR 37895).

REASON:Records are now covered under

A0145–1 TRADOC, Army ReserveOfficer’s Training Corps (ROTC) andFinancial Assistance Programs.

ALTERATION:

A0145–1 TRADOC

SYSTEM NAME:Army Reserve Officer’s Training

Corps Gold QUEST Referral System(July 15, 1997, 62 FR 37893).

CHANGES:* * * * *

SYSTEM NAME:Delete entry and replace with ‘Army

Reserve Officer’s Training Corps (ROTC)and Financial Assistance Programs’.

SYSTEM LOCATION:Delete entry and replace with ‘MCS,

Incorporated, 10041 Polinski Road,Ivyland, PA 18974–9872; Headquarters,U.S. Army Reserve Officer’s TrainingCorps Cadet Command, 56 Patch Road,Fort Monroe, VA 23651–5000; U.S.Army Personnel Command, 200 StovallStreet, Alexandria, VA 22332–0400;offices of the Professor of MilitaryScience at civilian institutions in ROTCregional offices; ROTC Cadet Battalionsand Reserve Officers Training CorpsBrigade Recruiting Teams Officer’sTraining Corps Goldminer Teams.Official mailing addresses are publishedas an appendix to the Army’scompilation of system of recordsnotices.’

CATEGORIES OF INDIVIDUALS COVERED BY THESYSTEM:

Delete entry and replace with‘Individuals who apply and are

accepted into the Army ROTC program;potential enrollees in the Senior ROTCprogram; and individuals who desire toparticipate in the Army ROTC FinancialAssistance (Scholarship Program).’

CATEGORIES OF RECORDS IN THE SYSTEM:Delete entry and replace with

‘Records include individualapplications and/or prospect referralsfor appointment which include suchpersonal data as name, Social SecurityNumber; sex, date and place of birth,citizenship; home address, telephonenumber; marital status, dependents,name of high school, high schoolgraduation date, grade point average;Scholastic Assessment Test, AmericanCollege Testing, Preliminary ScholasticAssessment Testing scores; collegeadmission status; college(s) expected toattend, desired academic major(s);academic transcripts and certificates ofeducation to prior military serviceinformation, training, college boardscores and test results; medicalexamination, acceptance/declination,interview board results; financialassistance document awards, ROTCcontract and evaluation from Professorof Military Science commanding officer;photographs, references;correspondence between the memberand the Army or other Federal agencies,letters of recommendation, inquiriesregarding applicant’s selection ornonselection, letter of appointment inActive Army on completion of ROTCstatus; Security clearance documents,reports of Reserve Officer TrainingCorps Advanced, Ranger, or Basic Campperformance of applicant.’

AUTHORITIES FOR MAINTENANCE OF THE SYSTEM:Delete entry and replace with ‘10

U.S.C. 2101–2111, Reserve OfficerTraining Corps, and 10 U.S.C. 3013,Secretary of the Army, Army Regulation145–1, Senior Reserve Officer’s TrainingCorps Program: Organization,Administration, and Training; ArmyRegulation 145–2, Junior ReserveOfficer’s Training Corps Program:Organization, Administration andTraining, and E.O. 9397 (SSN).’

PURPOSE(S):Delete entry and replace with ‘To

provide a central database of potentialprospects for enrollment in the ROTCand the Senior Army ROTC program,provide training and commissioning ofeligible cadets in active Army and toassist prospects by providinginformation concerning educationalinstitutions having ROTC programs;scholarship information andapplications, information on specializedprograms such as Nursing, Green toGold and historically Black Colleges and

Universities information regarding otherArmy enlistment, reserve or NationalGuard programs. System renderspersonnel management, recruitmentmanagement, information reports, andrefers qualified prospects to a Professorof Military Science at or near theircollege(s) of choice, strength andmanpower management accounting.Also administers the financialassistance program; renders theselection of recipients for 2, 3, and 4year scholarships; monitor selecteesperformance (academic and ROTC) andalso develop policies and procedures,compile statistics and renders reports.’

ROUTINE USES OF RECORDS MAINTAINED IN THESYSTEM, INCLUDING CATEGORIES OF USERS ANDTHE PURPOSES OF SUCH USES:

Add two new paragraphs ‘To theFederal Aviation Administration toobtain flight certification and/orlicensing.

To the Department of Veterans Affairsfor member Group Life Insurance and/or other benefits.’

Add a new category ‘Disclosure toconsumer reporting agencies:Disclosures pursuant to 5 U.S.C.522a(b)(12) may be made from thissystem to ‘consumer reporting agencies’as defined in the Fair Credit ReportingAct (14 U.S.C. 1681a(f)) or the FederalClaims Collection Act of 1966 (31 U.S.C.3701(a)(3)). The purpose of thisdisclosure is to aid in the collection ofoutstanding debts owed to the Federalgovernment; typically to provide anincentive for debtors to repaydelinquent Federal government debts bymaking these debts part of their creditrecords.

This disclosure is limited toinformation necessary to establish theidentity of the individual, includingname, address, and taxpayeridentification number (Social SecurityNumber); the amount, status, andhistory of the claim; and the agency orprogram under which the claim arosefor the sole purpose of allowing theconsumer reporting agency to prepare acommercial credit report.

STORAGE:

Delete entry and replace with‘electronic storage media and paperrecords in file folders in securedcabinets.’* * * * *

RETENTION AND DISPOSAL:

Delete entry and replace with ‘CadetCommand Form 139 is retained in theROTC unit for 5 years after cadet leavesthe institution or is disenrolled from theROTC program. Following successful



completion of ROTC and academicprograms and appointment as acommissioned officer with initialassignment to active duty for training,copy of pages 1 and 2 are reproducedand sent to the commandant ofindividual’s basic branch course school.Records of rejected ROTC applicants aredestroyed. Other records mentioned inpreceding paragraphs are immediatelydestroyed unless the records are forfinancial assistance which are retainedfor 1 year then destroyed or if they arenot required to become part ofindividual’s Military Personnel Recordsjacket. ROTC QUEST records areretained for 3 years then destroyed.ROTC Scholarship application recordsare destroyed 1 year after graduation ordisenrollment.’* * * * *

RECORD SOURCE CATEGORIES:Delete entry and replace with ‘Source

categories can be used for all areascovered in this system, however, theretrieval of this information is limitedonly to specific areas of interest andspecialty: Prospects include the ArmyROTC toll-free telephone number,magazines, newspapers, posteradvertising coupons, mail-back replycards, letters, walk-ins, referrals fromparents, relatives, civilian educationalinstitutions and staff, friends, associates,college registrars, dormitory directors,national testing organizations, honorsocieties, boys’ clubs, boy scoutorganizations, Future Farmers ofAmerica, minority and civil rightsorganizations, fraternity and churchorganizations; neighborhood youthcenters, YMCA, YWCA, social clubs,athletic clubs, boys state/girls state/scholarship organizations, U.S. ArmyRecruiting Command, Military AcademyLiaison officers, West Point non-selectlisting, previous employers, tradeorganizations, military service, andother organizations and commandscomprising the Department of Defense,Army records, addressing entitlementstatus, medical examination andtreatment, security determination andattendance and training informationwhile ROTC cadet.’* * * * *

A0145–1 TRADOC

SYSTEM NAME:Army Reserve Officer’s Training

Corps (ROTC) and Financial AssistancePrograms.

SYSTEM LOCATION:MCS, Incorporated, 10041 Polinski

Road, Ivyland, PA 18974–9872;Headquarters, U.S. Army Reserve

Officer’s Training Corps CadetCommand, 56 Patch Road, Fort Monroe,VA 23651–5000; U.S. Army PersonnelCommand, 200 Stovall Street,Alexandria, VA 22332–0400; offices ofthe Professor of Military Science atcivilian institutions in ROTC regionaloffices; ROTC Cadet Battalions andReserve Officers Training Corps BrigadeRecruiting Teams and Reserve Officer’sTraining Corps Goldminer Teams.Official mailing addresses are publishedas an appendix to the Army’scompilation of system of recordsnotices.

CATEGORIES OF INDIVIDUALS COVERED BY THESYSTEM:

Individuals who apply and areaccepted into the Army ROTC program;potential enrollees in the Senior ROTCprogram; and individuals who desire toparticipate in the Army ROTC FinancialAssistance (Scholarship Program).

CATEGORIES OF RECORDS IN THE SYSTEM:Records include individual

applications and/or prospect referralsfor appointment which include suchpersonal data as name, Social SecurityNumber; sex, date and place of birth,citizenship; home address, telephonenumber; marital status, dependents,name of high school, high schoolgraduation date, grade point average;Scholastic Assessment Test, AmericanCollege Testing, preliminary ScholasticAssessment Testing scores; collegeadmission status,; college(s) expected toattend, desired academic major(s);academic transcripts and certificates ofeducation to prior military serviceinformation, training, college boardscores and test results; medicalexamination, acceptance/declination,interview board results; financialassistance document awards, ROTCcontract and evaluation from Professorof Military Science commanding officer;photographs, references;correspondence between the memberand the Army of other Federal agencies,letters of recommendation, inquiriesregarding applicant’s selection ornonselection, letter of appointment inActive Army on completion of ROTCstatus; Security clearance documents,reports of Reserve Officer TrainingCorps Advanced, Ranger, or Basic Campperformance of applicant.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

10 U.S.C. 2101–2111, Reserve OfficerTraining Corps, and 10 U.S.C. 3013,Secretary of the Army; Army Regulation145–1, Senior Reserve Officer’s TrainingCorps Program: Organization,Administration, and Training; ArmyRegulation 145–2, Junior Reserve

Officer’s Training Corps Program:Organization, Administration andTraining, and E.O. 9397 (SSN).

PURPOSE(S):

To provide a central database ofpotential prospects for enrollment in theROTC and the Senior Army ROTCprogram, provide training andcommissioning of eligible cadets inactive Army and to assist prospects byproviding information concerningeducational institutions having ROTCprograms; scholarship information andapplications, information on specializedprograms such as Nursing, Green toGold and historically Black Colleges andUniversities and information regardingother Army enlistment, reserve orNational Guard programs. Systemrenders personnel management,recruitment management, informationreports, and refers qualified prospects toa Professor of Military Science at or neartheir college(s) of choice, strength andmanpower management accounting.Also administers the financialassistance program; renders theselection of recipients for 2, 3, and 4year scholarships; monitor selecteesperformance (academic and ROTC) andalso develop policies and procedures,compile statistics and render reports.’

Routine uses of records maintained inthe system, including categories of usersand the purposes of such uses: Inaddition to those disclosures generallypermitted under 5 U.S.C. 552a(b) of thePrivacy Act, these records orinformation contained therein mayspecifically be disclosed outside theDoD as a routine use pursuant to 5U.S.C. 552a(b)(3) as follows:

To the Federal AviationAdministration to obtain a flightcertification and/or licensing.

To the Department of Veterans Affairsfor member Group Life Insurance and/or other benefits.

The DoD ’Blanket Routine Uses‘ setforth at the beginning of the Army’scompilation of systems or recordsnotices also apply to this system.

DISCLOSURE TO CONSUMER REPORTINGAGENCIES:

Disclosures pursuant to 5 U.S.C.552a(b)(12) may be made from thissystem to ‘consumer reporting agencies’as defined in the Fair Credit ReportingAct (15 U.S.C. 1681a(f) or the FederalClaims Collection Act of 1966 (31 U.S.C.3701(a)(3)). The purpose of thisdisclosure is to aid in the collection ofoutstanding debts owed to the Federalgovernment; typically to provide anincentive for debtors to repaydelinquent Federal government debts by



making these debts part of their creditrecords.

The disclosure is limited toinformation necessary to establish theidentity of the individual, includingname, address, and taxpayeridentification number (Social SecurityNumber); the amount, status, andhistory of the claim; and the agency orprogram under which the claim arosefor the sole purpose of allowing theconsumer reporting agency to prepare acommercial credit report.

POLICIES AND PRACTICES FOR STORING,RETRIEVING, ACCESSING, RETAINING, ANDDISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

Electronic storage media and paperrecords in file folders in securedcabinets.

RETRIEVABILITY:

By name, Social Security Number,address peculiar identification assignedor other characteristics of qualificationor identity.

SAFEGUARDS:

Records maintained in secure areaaccessible only to authorized personnelin the performance of their duties.Automated records accessible only toauthorized personnel with passwordcapability.

RETENTION AND DISPOSAL:

Cadet Command Form 139 is retainedin the ROTC unit for 5 years after cadetleaves the institution or is disenrolledfrom the ROTC program. Followingsuccessful completion of ROTC andacademic programs and appointment asa commissioned officer with initialassignment to active duty for training,copy of pages 1 and 2 are reproducedand sent to the commandant ofindividual’s basic branch course school.Records of rejected ROTC applicants aredestroyed. Other records mentioned inpreceding paragraphs are immediatelydestroyed unless the records are forfinancial assistance which are retainedfor 1 year then destroyed or if they arenot required to become part ofindividual’s Military Personnel RecordsJacket. ROTC QUEST records areretained for 3 years then destroyed.ROTC Scholarship application recordsare destroyed 1 year after graduation ordisenrollment.

SYSTEM MANAGER(S) AND ADDRESS:

ROTC applicants and members:Commander, Fort Monroe, InformationManagement Officer, Building 256, FortMonroe, VA 23651–5000.

ROTC QUEST referral applicants:Commander, Fort Monroe, Marketing

Directorate, Building 57, Fort Monroe,VA 23651–5000.

ROTC financial assistance applicationfiles: Commander, Fort Monroe,Resource Management Officer, Building256, Fort Monroe, VA 23651–6000.

NOTIFICATION PROCEDURE:

Individuals seeking to determinewhether information about themselvesis contained in this system shouldaddress written inquiries to theCommander, U.S. Army ReserveOfficers Training Corps CadetCommand, Building 56, Port Monroe,VA 23651–5000 for records on theROTC Financial Assistance(Scholarship) Application File andROTC Applicant/Member Records; or tothe Commander, U.S. Total ArmyPersonnel Command, 200 Stovall Street,Alexandria, VA 22332–0400 for ROTCApplicant/Member Records; or to theCommander, U.S. Army ROTC CadetCommand, Marketing Directorate,Building 57, Fort Monroe, VA 23651–5000 for ROTC QUEST Referral Systemrecords.

Individuals should provide their fullname, current address, telephonenumber and signature.

RECORD ACCESS PROCEDURES:

Individuals seeking access toinformation about themselves containedin this system should address writteninquiries to the Commander, U.S. ArmyReserve Officers Training Corps CadetCommand, Building 56, Fort Monroe,VA 23651–5000; or to the Commander,U.S. Total Personnel Command, 200Stovall Street, Alexandria, VA 22332–0400 for ROTC Applicant/MemberRecords; or to the Commander, U.S.Army ROTC Cadet Command,Marketing Directorate, Building 57, FortMonroe, VA 23651–5000 for ROTCQUEST Referral System records.

Individuals should provide their fullname, current address telephonenumber and signature.

CONTESTING RECORD PROCEDURES:

The Army’s rules for accessingrecords, contesting contents, andappealing initial agency determinationsare contained in Army Regulation 340–21; 32 CFR Part 505; or may be obtainedfrom the system manager or theCommander, U.S. Army ROTC CadetCommand, Marketing Directorate,Building 57, Fort Monroe, VA 23651–5000.

RECORD SOURCE CATEGORIES:

Source categories can be used for allareas covered in this system, however,the retrieval of this information islimited only to specific areas of interest

and specialty: prospects include theArmy ROTC toll-free telephone number,magazines, newspapers, posteradvertising coupons, mail-back replycards, letters, walk-ins, referrals fromparents, relatives, civilian educationalinstitutions and staff, friends, associates,college registrars, dormitory directors,national testing organizations, honorsocieties, boys’ clubs, boy scoutorganizations, Future Farmers ofAmerica minority and civil rightsorganizations, fraternity and churchorganizations; neighborhood youthcenters, YMCA, YWCA, social clubs,athletic clubs, boys state/girls state/scholarship organizations, U.S. ArmyRecruiting Command, Military AcademyLiaison officers, West point non-selectlisting, previous employers, tradeorganizations, military service, andother organizations and commandscomprising the Department of Defense,Army records addressing entitlementstatus, medical examination andtreatment, security determination andattendance and training informationwhile ROTC cadet.

EXEMPTIONS CLAIMED FOR THE SYSTEM:None,

[FR Doc. 01–11761 Filed 5–9–01; 8:45 am]BILLING CODE 5001–08–M


Department of the Navy

Notice of Intent To Grant PartiallyExclusive License; WickfordTechnologies, Inc.

AGENCY: Department of the Navy, DOD.ACTION: Notice.

SUMMARY: The Department of the Navygives notice of its intent to grant toWickford Technologies, Inc., arevocable, nonassignable, partiallyexclusive license, with exclusive fieldsof use in recreational marineelectronics, petroleum distribution,process pipe, and aviation electronics inthe United States to practice theGovernment-owned invention, U.S.Patent Application Serial Number 09/391,605 entitled ‘‘Differential PressureFlow Sensor.’’DATES: Anyone wishing to object to thegrant of this license must file writtenobjections along with supportingevidence, if any, not later than May 20,2001.ADDRESSES: Written objections are to befiled with Indian Head Division, NavalSurface Warfare Center, Code OC4, 101Strauss Avenue, Indian Head, MD20640–5035.



FOR FURTHER INFORMATION CONTACT: Dr.J. Scott Deiter, Head, TechnologyTransfer Office, Naval Surface WarfareCenter Indian Head Division, Code 05T,101 Strauss Avenue, Indian Head, MD20640–5035, telephone (301) 744–6111.

Dated: May 1, 2001.C.G. Carlson,Major, U.S. Marine Corps, Alternate FederalRegister Liaison Officer.[FR Doc. 01–11820 Filed 5–9–01; 8:45 am]BILLING CODE 3810–FF–P

DEPARTMENT OF EDUCATION

[CFDA No. 84.330]

Notice To Correct Deadline forIntergovernmental Review

AGENCY: Office of Elementary andSecondary Education, Department ofEducation.ACTION: Advanced Placement IncentiveProgram; Notice inviting applicationsfor new awards for Fiscal Year (FY2001; Notice to correct deadline forintergovernmental review).

SUMMARY: On April 23, 2001 (66 FR20440–20442), the Departmentpublished a notice inviting applicationsfor new awards for FY 2001. The noticeestablished June 22, 2001 as thedeadline for intergovernmental review.The Secretary corrects the deadline theintergovernmental review for theAdvanced Placement Incentive Programgrant competition.DATES: The new deadline forintergovernmental review is August 6,2001. The deadline for transmittal ofapplications remains June 7, 2001.FOR FURTHER INFORMATION CONTACT:Frank B. Robinson, U.S. Department ofEducation, School of ImprovementPrograms, 400 Maryland Avenue, SW.,Room 3C153, Washington, DC 20202–6140; Telephone (202) 260–2669. If youuse a telecommunications device for thedeaf (TDD), you may call the FederalInformation Relay Service (FIRS) at 1–888–877–8339.

Electronic Access to This Document

You may view this document, as wellas all other Department of Educationdocuments published in the FederalRegister, in text or Adobe PortableDocument Format (PDF) on the Internetat the following site: www.ed.gov./legislation/FedRegister.

To use PDF, you must have AdobeAcrobat Reader, which is available freeat the previous site. If you havequestions about using PDF, call the U.S.Government Printing Office (GPO) toll

free at 1–888–293–6498; or in theWashington, DC area at (202) 512–1530.

Note: The official version of this documentis the document published in the FederalRegister. Free Internet access to the officialedition of the Federal Register and the Codeof Federal Regulations is available on GPOAccess at: http://www.access.gpo.gov/nara/index.html.

Authority: 20 U.S.C. 7131.

Dated: May 4, 2001.Thomas M. Corwin,Acting Deputy Assistant Secretary forElementary and Secondary Education.[FR Doc. 01–11823 Filed 5–9–01; 8:45 am]BILLING CODE 4000–01–M


Federal Energy RegulatoryCommission

[Docket No. RP01–392–000]

ANR Pipeline Company; Notice ofProposed Change in FERC Gas Tariff

May 4, 2001.Take notice that on May 1, 2001, ANR

Pipeline Company (ANR) tendered forfiling as part of FERC GAS Tariff,Second Revised Volume No. 1, thefollowing revised tariff sheet to beeffective June 1, 2001.Thirtieth Revised Sheet No. 17

ANR states that this filing representsANR’s annual report of the net revenuesattributable to the operation of itscashout program. ANR proposes todecrease its currently effective cashoutsurcharge, from $0.3344 per Dth to$0.1508, pursuant to Section 15.5 of theGeneral Terms and Conditions of itstariff.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public Referenceroom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 for

assistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.

David P. Boergers,Secretary.[FR Doc. 01–11785 Filed 5–9–01; 8:45 am]BILLING CODE 6717–01–M




Arkansas Western Gas Company:Notice of Application for Rate Approval

May 4, 2001.Take notice that on April 4, 2001,

Arkansas Western Gas Company(AWGC) filed an application for rateapproval, pursuant to Sections 284.224,and 284.123(b)(2) of the Commission’sregulations, for rates to be charged forinterruptible transportation servicesunder its Order No. 63 blanketcertificate. AWGC proposes a maximuminterruptible rate for transportation onits northwest Arkansas system south ofthe Drake Compressor Station of$0.1278 per MMBtu, plus 3.57 percentreimbursement for compressor fuel, andlost and unaccounted for gas.

Pursuant to Section 284.1213(b)(2)(ii)of the Commission’s regulations, if theCommission does not act within 150days of the Application’s filing date, therates proposed therein will be deemedto be fair and equitable and not inexcess of an amount that interstatepipelines would be permitted to chargefor similar services. The Commissionmay, prior to the expiration of the 150-day period, extend the time for action orinstitute a proceeding.

Any person desiring to participate inthis rate proceeding must file a motionto intervene or protest with the FederalEnergy Regulatory Commission, 888First Street, NE., Washington, DC 20426,in accordance with rules 211 and 214 ofthe Commission’s Rules of Practice andProcedure (18 CFR 385.211 and385.214). All motions must be filed withthe Secretary of the Commission on orbefore May 21, 2001. This petition forrate approval is on file with thecommission and is available for publicinspection. This filing may be viewedon the web at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronically



1 Colorado Interstate Gas Co., 95 FERC ¶ 61,099(2001).

via the internet in lieu of paper. See, 18CFR 385.200(a)(1)(iii) and theinstruction on the Commission’s website at http://www.ferc.fed.us.efi/doorbell.htm.





Colorado Interstate Gas Company;Notice of Technical Conference

May 4, 2001.In the Commission’s order issued on

April 25, 2001,1 the Commissiondirected that a technical conference beheld to address issues raised by thefiling.

Take notice that the technicalconference will be held on Tuesday,May 22, 2001, at 10 a.m., in a room tobe designated, at the offices of theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426.

All interested parties and Staff arepermitted to attend. If a secondtechnical conference meeting isrequired, that meeting will take place onJune 5, 2001, at 10 a.m., at theCommission, and a separate notice ofthat meeting will be issued.





Discovery Gas Transmission, LLC;Notice of Cash-Out Report


Discovery Gas Transmission LLC(Discovery) filed with the Commissionits annual cash-out report for thecalendar year ended December 31, 2000.

Discovery states that the cash-outreport reflects a net gain for this periodof $464,639.46. The cumulative gainfrom cash-out transactions is

$165,959.11. This net gain, which is lessthan $400,000.00, will be carriedforward to the subsequent reportingperiod.

Discovery states that copies of thisfiling are being mailed to its customers,state commissions and other interestedparties.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Commission, 888 FirstStreet, NE., Washington, DC 20426, inaccordance with Section 385.214 or385.211 of the Commission’s Rules andRegulations. All such motions orprotests must be filed on or before May14, 2001. Protests will be considered bythe Commission in determining theappropriate action to be taken, but willnot serve to make protestants parties tothe proceedings. Any person wishing tobecome a party must file a motion tointervene. Copies of this filing are onfile with the Commission and areavailable for public inspection in thePublic Reference Room. This filing maybe viewed on the web at http://www.ferc.fed.us/online/rims.htm (call2020–208–2222 for assistance).Comments, protests, and interventionsmay be filed electronically via theinternet in lieu of paper. See, 18 CFR385.2001(a)(1)(iii) and the instructionson the Commission’s web site athttp://www.ferc.fed.us/efi/doorbell.htm.





Eastern Shore Natural Gas Company;Notice of Interruptible RevenueSharing Report

May 4, 2001.Take notice that on May 1, 2001,

Eastern Shore Natural Gas Company(Eastern Shore) tendered for filing itsInterruptible Revenue Sharing Reportpursuant to Section 37 of the GeneralTerms and Conditions of its FERCTariff.

Eastern Shore states that it intends tocredit a total of $623,814, includinginterest of $44,270 to its firmtransportation customers on July 1,2001. The credit amount represents 90percent of the net revenues received byEastern Shore under Rate Schedule IT(in excess of the cost of service allocated

to such rate schedule) for the periodApril 2000 through March 2001.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed on or beforeMay 14, 2001. Protests will beconsidered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website athttp://www.ferc.fed.us/efi/doorbell.htm.




[Docket Nos. RP01–399–000, CP99–94–004and RP96–366–014]

Florida Gas Transmission Company;Notice of Compliance Filing


Florida Gas Transmission Company(FGT) tendered for filing as part of itsFERC Gas Tariff, Third Revised VolumeNo. 1, the following tariff sheets, withan effective date of May 1, 2001:Third Revised Sheet No. 56Second Revised Sheet No. 67Third Revised Sheet No. 541Third Revised Sheet No. 542

FGT states that on June 2, 1999, FGTfiled a Stipulation and Agreement ofSettlement (Settlement) in Docket Nos.CP99–94–000 and RP96–366–000, et al.resolving all non-environmental issuesin its Phase IV Expansion proceeding.The Commission issued an orderapproving the Settlement on July 30,1999.



FGT states that in the Settlement,among other provisions, that it wouldfile revised tariff sheets prior to the in-service date of the proposed Phase IVExpansion to provide that firmtransportation service under FT’s RateSchedule FTS–2 will reflect seasonalentitlements for four seasons. Currently,FTS–2 service includes defined levels ofseasonal Maximum DailyTransportation Quantities (MDTQ) foronly two seasonal periods: (1)November through April and (2) Maythrough October. In the Settlement, theparties agreed to change the two seasonsto four seasons: (1) October, (2)November through March, (3) April, and(4) May through September. Increasingthe seasons to four allows FTS–2 serviceagreements to have the same seasonalperiods as service agreements for firmtransportation service under FGT’s RateSchedule FTS–1.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.

David P. Boergers,Secretary.[FR Doc. 01–11771 Filed 5–9–01; 8:45 am]




[Docket Nos. CP01–176–000, CP01–177–000, CP01–178–000, CP01–179–000]

Georgia Straits Crossing Pipeline LP.;Notice of Applications


Georgia Straits Crossing Pipeline LP(GSX), P.O. 58900, Salt Lake City, Utah,84158–0900, filed in Docket No. CP01–176–000 an application pursuant toSection 7(c) of the Natural Gas Act forauthorization to construct and operate anew interstate natural gas transmissionsystem consisting of approximately 47miles of related pipeline and relatedfacilities in the state of Washington; inDocket No. CP01–177–000 anapplication for a blanket certificateauthorizing Part 284 transportation; inDocket No. CP01–178–000 anapplication for a blanket certificateauthorizing certain routine activitiesunder Subpart F of Part 157; and inDocket No. CP01–179–000 anapplication for Section 3 sitingauthorization for export/import facilitiesand a Presidential Permit authorizingthe construction, operation andmaintenance of interconnect facilitiesfor imports and exports at two locationson the US/Canadian internationalborder, all as more fully set forth in theapplication on file with the Commissionand open to public inspection. Thisfiling may be viewed on the web athttp://www.ferc.fed.us/online/rims.htm(call 202–208–2222 for assistance).

GSX proposes the construct: (1) a10,302 horsepower (ISO rated)compressor station at Cherry Point,Whatcom County, Washington, locatedadjacent to an existing industrial areaapproximately a mile from the Strait ofGeorgia shoreline; (2) approximately 32miles of 20-inch pipeline generallyparalleling existing pipeline corridorsfrom Sumas to the proposed CherryPoint compressor station; (3)approximately 15 miles of 16-inchpipeline from the Cherry Pointcompressor station to an offshoreinterconnect with a Canadian pipelineproposed to be built by GSX CanadaLimited Partnership (GSX-Canada) fromthat interconnect to a delivery point intothe distribution system of Central GasBritish Columbia Inc. on VancouverIsland; (4) receipt point meter stationfacilities interconnecting withWestcoast Energy Inc. at the Canadianborder and with Northwest PipelineCorporation, both near Sumas; and (5)appurtenant facilities. GSX estimates

the total cost of the proposed facilitiesat approximately $90.7-million.

GSX states that the initial firm designcapacity of its system will beapproximately 94,000 Dth per day. It isindicated that as a result of an openseason, Powerex Corporation (Powerex),an affiliate of British Columbia Hydroand Power Authority (BC hydro),executed a binding precedent agreementfor all of the initial certificated designcapacity for a 30-year term, at negotiatedrates. GSX avers that Powerex requiresthe capacity to meet the obligations ofBC Hydro to supply natural gas fuel totwo new generating plants onVancouver Island. Further, GSX statesthat its system is designed to facilitaterelatively inexpensive expansions, bycompression upgrades, to accommodatefuture market growth on VancouverIsland and in northwestern Washingtonstate.

GSX states that its proposal and thatof GSX-Canada comprise theinternational Georgia Strait CrossingProject. GSX indicates that pursuant tothe GSC Project Agreement betweenGSX and its sponsor, Williams GasPipeline Company (Williams), and GSX-Canada and its sponsor, BritishColumbia Hydro and Power Authority(BC Hydro), the owners have agreed tocoordinate certain decisions regardingthe construction and operation of GSXand GSX-Canada through a GSXCommittee. GSX also states that subjectto the owners and through the GSXCommittee on matters within thecommittee’s purview, GSX OperatingCompany, L.L.C., an wholly ownedsubsidiary of Williams, will design andengineer, manage the procurement andconstruction, operate and maintain andmanage the day-to-day business affairsof both GSX and GSX-Canada pipeline,as a contractor for the owners.

GSX proposes a pro forma Tariffwhich includes its proposed RateSchedules FT–1 for firm service and IT–1 for interruptible service. GSXproposes traditional cost-of-servicebased rates for its initial recourse rates.GSX states that its proposed rates reflecta 70% debt, 30% equity capitalstructure, 8% interest on debt, 14%return on equity and a 30 yeardepreciation life. GSX avers that itsproposed rates are designed under thestraight fixed variable methodologyusing a quantity/distance cost allocationto establish rates for two zones, one formainland U.S. delivers and one fordeliveries to GSX-Canada. GSX alsostates that the proposed initial recoursemaximum daily reservation rates are$0.36546 per Dth of contract demand forservice to mainland U.S. points and



$0.51233 per Dth of contract demand forservice to the GSX-Canada interconnect.

GSX requests that the Commissionissue a preliminary determination onthe non-environmental aspects of theapplication by January 31, 2002 and afinal order granting the requestedcertificate authorization by May 31,2002 so that the project may becompleted by the late October 2003 in-service date required to ensurePowerex’s ability to meet the long-terngas supply commitments of BC Hydro tothe new electricity generation facilitieson Vancouver Island.

Any questions regarding theapplication should be directed to GaryK. Kotter, Manger, Certificates, GSXPipeline, L.L.C., P.O. Box 58900, SaltLake City, Utah 84158–0900, (801) 584–7117.

There are two ways to becomeinvolved in the Commission’s review ofthis project. First, any person wishing toobtain legal status by becoming a partyto the proceedings for this projectshould, on or before May 25, 2001, filewith the Federal Energy RegulatoryCommission, 888 First Street, NE,Washington, D.C. 20426, a motion tointervene in accordance with therequirements of the Commission’s Rulesof Practice and Procedure (18 CFR385.214 or 385.211) and the Regulationsunder the NGA (18 CFR 157.10). Aperson obtaining party status will beplace on the service list maintained bythe Secretary of the Commission andwill receive copies of all documentsfiled by the applicant and by all otherparties. A party must submit 14 copiesof filings made with the Commissionand must mail a copy to the applicantand to every other party in theproceeding.

Only parties to the proceeding can askfor court review of Commission ordersin the proceeding.

However, a person does not have tointervene in order to have commentsconsidered. The second way toparticipate is by filing with theSecretary of the Commission, as soon aspossible, an original and two copies ofcomments in support of or in oppositionto this project. The Commission willconsider these comments indetermining the appropriate action to betaken, but the filing of a comment alonewill not serve to make the filer a partyto the proceeding.The Commission’srules require that persons filingcomments in opposition to the projectprovide copies of their protests only tothe party or parties directly involved inthe protest.

Persons who wish to comment onlyon the environmental review of thisproject should submit an original and

two copies of their comments to theSecretary of the Commission.Environmental commenters will beplaced on the Commission’senvironmental mailing list, will receivecopies of the environmental documents,and will be notified of meetingsassociated with the Commission’senvironmental review process.Environmental commenters will not berequired to serve copies of fileddocuments on all other parties.However, the non-party commenterswill not receive copies of all documentsfiled by other parties or issued by theCommission (except for the mailing ofenvironmental documents issued by theCommission) and will not have the rightto seek court review of theCommission’s final order.

The Commission may issue apreliminary determination on non-environmental issues prior to thecompletion of its review of theenvironmental aspects of the project.The preliminary determination typicallyconsiders such issues as the need for theproject and its economic effect onexisting customers of the applicant, onother pipelines in the area, and onlandowners and communities. Forexample, the Commission considers theextent to which the applicant may needto exercise eminent domain to obtainrights-of-way for the proposed projectand balances that against the non-environmental benefits to be providedby the project. Therefore, if a person hascomments on community andlandowner impacts form this proposal,it is important either to file commentsor to intervene as early in the process aspossible.

Also, comments protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See,CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.

If the Commission decides to set theapplication for a formal hearing beforean Administrative Law Judge, theCommission will issue another noticedescribing that process. At the end ofthe Commission’s review process, afinal Commission order approving ordenying a certificate will be issued.






Great Lakes Gas Transmission LimitedPartnership; Notice of ProposedChanges in FERC Gas Tariff andRequest for Waiver


Great Lakes Gas Transmission LimitedPartnership (Great Lakes) tendered forfiling as part of its FERC Gas Tariff,Second Revised Volume No. 1, thefollowing tariff sheets with an effectivedate of June 1, 2001:Third Revised Sheet No. 8ATenth Revised Sheet No. 9Second Revised Sheet No. 50A

Great Lakes states that these tariffsheets are being filed to add a provisionto its tariff stating that any gastransported for others utilizing off-system capacity will be pursuant to itsPart 284 open access tariff and will besubject to its Commission-approvedrates. The provision also states thatGreat Lakes may pass through to thebenefiting shipper(s) any amounts GreatLakes must pay to a third party toacquire this off-system capacity.

Great Lakes is requesting a genericwaiver of the Commission’s ‘‘shippermust hold title’’ policy to permit it toprovide transportation for others onsuch acquired off-system capacity.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s web



site at http://www.ferc.fed.us/efi/doorbell.htm.





Northern Natural Gas Company; Noticeof Proposed Changes in FERC GasTariff


Northern Natural Gas Company(Northern) tendered for filing to becomepart of Northern’s FERC Gas Tariff, FifthRevised Volume No. 1 the followingtariff sheets to be effective June 1, 2001:Fourteenth Revised Sheet No. 54First Revised Sheet No. 54ATwelfth Revised Sheet No. 61Twelfth Revised Sheet No. 62Twelfth Revised Sheet No. 63Twelfth Revised Sheet No. 64First Revised Sheet No. 300AFourth Revised Sheet No. 301Second Revised Sheet No. 301A

Northern states that the revised tariffsheets are being filed in accordancewith Section 53 of Northern’s GeneralTerms and Conditions, which requiresNorthern to adjust its fuel andUnaccounted for (UAF) gas percentageseach June 1.

Northern states that copies of thefiling were served upon Northern’scustomers and interested StateCommissions.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 for

assistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.




Northern Natural Gas Company; Noticeof Proposed Changes in FERC GasTariff

May 4, 2001.Take notice that on May 1, 2001

Northern Natural Gas Company(Northern) tendered for filing to becomepart of Northern’s FERC Gas Tariff, thefollowing tariff sheets to be effectiveJune 1, 2001:

Fifth Revised Volume No. 1

56 Revised Sheet No. 5057 Revised Sheet No. 5124 Revised Sheet No. 5254 Revised Sheet No. 53Sixth Revised Sheet No. 5616 Revised Sheet No. 59Second Revised Sheet No. 59A21 Revised Sheet No. 60Second Revised Sheet No. 60A

Original Volume No. 2

164 Revised Sheet No. 1C40 Revised Sheet No. 1C.a

Northern states that this filing is torevise Northern’s rates, effective June 1,2001, to reflect an adjustment for thereturn and tax components associatedwith the System Levelized Account(SLA) balance as of March 31, 2001.

Northern states that copies of thefiling were served upon Northern’scustomers and interested StateCommissions.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, N.E., Washington, D.C.20426, in accordance with sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copies

of this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (Call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.





PG&E Gas Transmission, NorthwestCorporation; Notice of Negotiated Rate


PG&E Gas Transmission, NorthwestCorporation (GTN) tendered for filing aspart of its FERC Gas Tariff, First RevisedVolume No. 1–A., Fifteenth RevisedSheet No. 7 and Seventh Revised SheetNo. 7A GTN requests that these tariffsheets become effective May 1, 2001.

GTN states that these sheets are beingfiled to reflect the implementation ofone negotiated rate agreement.

GTN further states that a copy of thisfiling has been served on GTN’sjurisdictional customers and interestedstate regulatory agencies.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, and



interventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.





Reliant Energy Gas TransmissionCompany; Notice of Negotiated Rate

May 4, 2001.

Take notice that on May 1, 2001,Reliant Energy Gas TransmissionCompany (REGT) tendered for filing aspart of its FERC Gas Tariff, Fifth RevisedVolume No. 1, the following tariff sheetsto be effective May 1, 2001.Third Revised Sheet No. 8COriginal Sheet No. 8AIOriginal Sheet No. 8AJOriginal Sheet No. 8AKOriginal Sheet No. 8AL

REGT states that the purpose of thisfiling is to reflect the addition of fournew negotiated rate contracts and therevision of an existing negotiated ratecontract.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s web

site at http://www.ferc.fed.us/efi/doorbell.htm.




[Docket No. GT01–15–001]

Texas Eastern Transmission, LP;Notice of Errata Filing


Texas Eastern Transmission, LP (TexasEastern) tendered for filing as part of itsFERC Gas Tariff, Seventh RevisedVolume No. 1 and First Revised VolumeNo. 2, substitute tariff sheets to beeffective April 16, 2001 as listed onAppendix A to the filing.

Texas Eastern states that the purposeof this filing is to reflect the correctionof certain typographical and ministerialerrors in some of the Original TariffSheets filed in Docket No. GT01–15–000on April 12, 2001 and Texas Easternrequests the Commission to permit thesubstitution of these substitute tariffsheets for those corresponding sheetsfiled on April 12.

Texas Eastern states that copies of itsfiling have been mailed to all affectedcustomers and interested statecommissions and that the filing will beposted in a downloadable format onTexas Eastern’s Informational PostingsWeb site located at www.link.duke-energy.com.

Any person desiring to protest saidfiling should file a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with section385.211 of the Commission’s Rules andRegulations. All such protests must befiled in accordance with section 154.210of the Commission’s Regulations.Protests will be considered by theCommission in determining theappropriate action to be taken, but willnot serve to make protestants parties tothe proceedings. Copies of this filing areon file with the Commission and areavailable for public inspection in thePublic Reference Room. This filing maybe viewed on the web at http://www.ferc.fed.us/online/rims.htm (Call202–208–2222 for assistance).Comments, protests and interventionsmay be filed electronically via theinternet in lieu of paper. See, 18 CFR385.2001(a)(1)9ii) and the instructions

on the Commission’s web site athttp://www.ferc.fed.us/efi/doorbell.htm.





Texas Eastern Transmission, LP;Notice of Tariff Filing


Texas Eastern Transmission, LP (TexasEastern) tendered for filing as part of itsFERC Gas Tariff, Seventh RevisedVolume No. 1, the following tariff sheetproposed to be effective June 1, 2001:First Revised Sheet No. 543

Texas Eastern states that the purposeof this filing is to amend its tariff, assuggested by the Commission in itsApril 12, 2001, Order DenyingClarification and Rehearing in DocketNo. CP95–218–004, to include a genericwaiver of the ‘‘shipper must have title’’rule and a general statement that it willonly transport for others on offsystemcapacity pursuant to its existing tariffand rates.

Texas Eastern states that copies of itsfiling have been mailed to all affectedcustomers and interested statecommissions.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of theCommission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and the



instructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.





Transcontinental Gas Pipe LineCorporation; Notice of Tariff Filing


Transcontinental Gas Pipe LineCorporation (Transco) tendered forfiling as part of its FERC Gas Tariff,Third Revised Volume No. 1, certainrevised tariff sheet which sheets areenumerated in Appendix A attached tothe filing.

Transco states that the purpose of theinstant filing is track rate changesattributable to transportation servicepurchased from DominionTransmission, Inc. (Dominion) under itsRate Schedule GSS the costs of whichare included in the rates and chargespayable under Transco’s Rate SchedulesGSS and LSS, and to track thetransportation service purchased fromTexas Gas Transmission Corporation(Texas Gas) under its Rates Schedule FTthe costs of which are included in therates and charges payable underTransco’s Rate Schedule FT–NT. Thefiling is being made pursuant to thetracking provisions under Section 3 ofTransco’s Rate Schedule GSS, Section 4of the Transco’s Rate Schedule LSS andSection 4 of Transco’s Rate ScheduleFT–NT.

Transco states that included inAppendix B and C attached to the filingare the explanations and detailsregarding the computation of the RateSchedule GSS, LSS and FT–NT ratechanges.

Transco states that copies of the filingare being mailed to each of its GSS, LSSand FT–NT customers and interestedState Commissions.

Any person desiring to be heard or toprotest said filing should file a motionto intervene or a protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Sections385.214 or 385.211 of the Commission’sRules and Regulations. All such motionsor protests must be filed in accordancewith Section 154.210 of the

Commission’s Regulations. Protests willbe considered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceedings.Any person wishing to become a partymust file a motion to intervene. Copiesof this filing are on file with theCommission and are available for publicinspection in the Public ReferenceRoom. This filing may be viewed on theweb at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance). Comments, protests, andinterventions may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.




[Docket No. EG01–163–000, et al.]

Pinnacle West Energy Corporation, etal. Electric Rate and CorporateRegulation Filings

May 4, 2001.Take notice that the following filings

have been made with the Commission:

1. Pinnacle West Energy Corporation

[Docket No. EG01–163–000]Take notice that on May 2, 2001,

Pinnacle West Energy Corporation(PWE) tendered for filing with theFederal Energy Regulatory Commission(Commission), a Notice of Withdrawalof its Application for Determination ofExempt Wholesale Generator (EWG)Status. PWE states that no parties haveintervened or protested the PWE EWGApplication, so no party will beprejudiced or otherwise affected byPWE’s withdrawal.

Comment date: May 25, 2001, inaccordance with Standard Paragraph Eat the end of this notice. TheCommission will limit its considerationof comments to those that concern theadequacy or accuracy of the application.

2. City of Vernon, California

[Docket No. EL00–105–004]Take notice that on April 27, 2001,

the City of Vernon, California (Vernon)tendered for filing, in compliance withthe Commission’s March 28, 2001‘‘Order Accepting In Part And Rejecting

In Part Compliance Filing’’, 94 FERC¶ 61,344, a revised Transmission OwnerTariff applicable to its activities as aParticipating Transmission Owner.

Vernon states that copies of this filinghave been served on each persondesignated on the official service listcompiled by the Secretary in theseproceedings.

Comment date: May 29, 2001, inaccordance with Standard Paragraph Eat the end of this notice.

3. Norton Energy Storage, L.L.C.

[Docket No. EL01–70–000]Take notice that on April 26, 2001,

Norton Energy Storage, L.L.C. (NES)filed with the Federal Energy RegulatoryCommission a Petition for DeclaratoryOrder pursuant to Section 385.207 ofthe Commission’s Regulations, 18 CFR385.207.

NES requests that the Commissiondeclare that transactions involving thedelivery of electric energy to NES’Compressed Air Energy Storage (CAES)generating facility (the NES Facility) forstorage through the compression of airinto a cavern for subsequent releasethrough turbine generators to produceelectric energy or ancillary services forsale or exchange at wholesale ininterstate commerce are exclusivelysubject to the Commission’s jurisdictionunder Section 201 of the Federal PowerAct, 16 U.S.C. §§ 824–825r (the FPA).

NES states that it is developing itsCAES generating facility at the site of anabandoned limestone mine in the Cityof Norton, Summit County, Ohio, nearAkron. NES represents that the NESFacility will eventually include 2,700MW of capacity, to be constructed inindividual increments of 300 MW.According to NES, the NES Facility willbe the first compressed air energystorage project to be developed in NorthAmerica as a merchant facility, and onlythe third CAES facility in the world.NES states that the NES Facility willemploy an innovative technology thatwill allow NES to ‘‘store’’ electricenergy produced in one period fordelivery, resale and use during a laterperiod, much as a pumped storagehydroelectric facility does.

NES states that the NES Facility’scustomers (including traditional publicutilities, merchant generators and powermarketers) will deliver electric energy tothe NES Facility from time to time. Thiselectric energy will be ‘‘stored’’ bycompressing air into a sealedunderground storage area. NES willmaintain the injected air at highpressure until its controlled releasethrough gas-fired turbine generatorsduring peak electric demand periods. Inthis manner, according to NES, the NES



Facility will reclaim the ‘‘compressionpower’’ used to compress and store air,for purposes of generating electricenergy for sale or exchange intowholesale markets. NES asserts thatparticipants in electric energy marketswill be able to use the NES Facility asa mechanism by which they can storeelectric energy obtained in wholesalemarkets during off-peak periods andexchange it for electric energy orancillary services made available towholesale markets during peak periods.

NES asks in its Petition that theCommission confirm that the variousways in which electric energy may bestored and exchanged through themedium of the NES Facility qualify astransactions involving the sale ofelectric energy and ancillary services forresale in interstate commerce, i.e., as‘‘electric service,’’ as that term isdefined at 18 CFR 35.2(a), subjectexclusively to the Commission’s FPAjurisdiction.

NES states that it is currently in theprocess of securing additional equityinvestors and arranging for the financingof the initial phase of its project. NESasserts that the financial markets,potential equity investors and would-becounter parties all require certainty as tohow electric energy transactionsinvolving the NES Facility will betreated for regulatory purposes. NEStherefore asks that the requesteddeclaratory order be issued by June 30,2001.

NES states that it has served copies ofits Petition upon representatives ofFirstEnergy Corp. and American ElectricPower, the public utilities with which itwill be interconnected, and uponrepresentatives of the Public UtilitiesCommission of Ohio and the AttorneyGeneral of Ohio. Questions concerningthis filing may be directed to counsel forNES, James F. Bowe, Jr., DeweyBallantine LLP, at (202) 429–1444, fax(202) 429–1579, [email protected].


4. Western Resources, Inc.

[Docket No. ER98–2157–002]

Take notice that on May 1, 2001,Western Resources, Inc. (Western) andits wholly-owned subsidiary, KansasGas and Electric Company (theCompanies), tendered for filing theAffidavit of Dr. David B. Pattondemonstrating that the Companiescontinue to satisfy the Commissionrequirements for market-based rateauthority.


5. Boston Edison Company

[Docket No. ER99–35–004]

Take notice that on May 1, 2001,Boston Edison Company tendered forfiling certain substitute rate schedulesheets to correct typographical errors inits First Revised Rate Schedule FERCNo. 169 filed on April 26, 2001 incompliance with the Commission’sorder issued March 27, 2001 in thisproceeding.


6. ISO New England Inc.

[Docket No. ER01–316–002]

Take notice that on May 1, 2001, ISONew England Inc. tendered for filing itsquarterly Index of Customers for itsTariff for Transmission Dispatch andPower Administration Services inaccordance with the procedure specifiedin its filing letter in Docket No. ER01–316–000 dated November 1, 2000, andapproved by Commission order issuedDecember 29, 2000.


7. Consumers Energy Company

[Docket No. ER01–1910–000]

Take notice that on April 30, 2001Consumers Energy Company(Consumers) tendered for filing aService Agreement with The DetroitEdison Company; Tenaska PowerServices Co.; and Aquila EnergyMarketing Corporation (Customers)under Consumers—FERC Electric TariffNo. 9 for Market Based Sales.

Consumers requested that theAgreements be allowed to becomeeffective April 1, 2001.

Copies of the filing were served uponthe Customers and the Michigan PublicService Commission.


8. Consumers Energy Company

[Docket No. ER01–1911–000]

Take notice that on April 30, 2001Consumers Energy Company(Consumers) tendered for filing aService Agreement with Engage EnergyAmerica LLC, (Customer) underConsumers—FERC Electric Tariff No. 9for Market Based Sales.

Consumers requested that theAgreement be allowed to becomeeffective April 1, 2001.

Copies of the filing were served uponthe Customer and the Michigan PublicService Commission.


9. Pacific Gas and Electric Company

[Docket No. ER01–1912–000]

Take notice that on April 30, 2001,Pacific Gas and Electric Company(PG&E) tendered for filing an executedGenerator Interconnection Agreement(GIA) to replace the unexecutedplaceholder GIA that is part of theGenerator Special Facilities Agreement(GSFA) between PG&E and SunriseCogeneration and Power Company(Sunrise) providing for Special Facilitiesand the parallel operation of Sunrise’sgenerating facility and the PG&E-ownedelectric system that is on file with theCommission as Service Agreement No. 2to PG&E Electric Tariff, Fourth RevisedVolume No. 5.

Copies of this filing have been servedupon Sunrise, the CaliforniaIndependent System OperatorCorporation, and the CPUC.


10. Idaho Power Company

[Docket No. ER01–1913–000]

Take notice that on April 30, 2001,Idaho Power Company tendered forfiling a revised long-term serviceagreement under its open accesstransmission tariff in the above-captioned proceeding.


11. Nevada Power Company

[Docket No. ER01–1914–000]

Take notice that on April 30, 2001,Nevada Power Company (NevadaPower) tendered for filing an executedService Agreement (Agreement) withthe following Overton Power DistrictNo. 5 (Overton). The Agreement is anumbrella agreement which allowsOverton to take service Under NevadaPower’s FERC Electric Tariff, FirstRevised Volume No. 4, Electric ServiceCoordination Tariff (Tariff).

Nevada Power respectfully requeststhat the Service Agreement becomeeffective April 1, 2001.

Copies of this filing were served uponthe Public Utilities Commission ofNevada, and all interested parties.




12. Ameren Services Company

[Docket No. ER01–1915–000]Take notice that on April 30, 2001,

Ameren Services Company (ASC)tendered for filing a Service Agreementfor Firm Point-to-Point TransmissionServices between ASC and AmerenEnergy, Inc. (customer). ASC asserts thatthe purpose of the Agreement is topermit ASC to provide transmissionservice to customer pursuant toAmeren’s Open Access Tariff.


13. RAMCO, Inc.


RAMCO, Inc. (Applicant), tendered forfiling pursuant to Section 205 of theFederal Power Act, and Part 35 of theCommission’s regulations, anapplication for authorization to makesales of capacity, energy, and certainAncillary Services at market-based rates;to reassign transmission capacity; and toresell firm transmission rights (FTRs).

Applicant proposes to own or leaseand operate two approximately 44 MWsimple-cycle, natural gas-firedcombustion turbine peaking facilitieslocated in San Diego County, Cities ofChula Vista and Escondido, California.Applicant is requesting waiver of theCommission’s prior notice regulationsas necessary to make its FERC ElectricTariff No. 1 effective as of May 1, 2001.Comment date: May 21, 2001, inaccordance with Standard Paragraph Eat the end of this notice.

14. Ohio Valley Electric Corporation,Indiana-Kentucky Electric Corporation


Ohio Valley Electric Corporation(including its wholly-owned subsidiary,Indiana-Kentucky Electric Corporation)(OVEC) tendered for filing a ServiceAgreement for Non-Firm Point-To-PointTransmission Service, dated March 23,2001 (the Service Agreement) betweenAllegheny Energy Supply Company,L.L.C. (Allegheny Energy) and OVEC.OVEC proposes an effective date ofMarch 30, 2001 and requests waiver ofthe Commission’s notice requirement toallow the requested effective date.

The Service Agreement provides fornon-firm transmission service by OVECto Allegheny Energy. In its filing, OVECstates that the rates and chargesincluded in the Service Agreement arethe rates and charges set forth in OVEC’sOpen Access Transmission Tariff.

A copy of this filing was served uponAllegheny Energy.


15. Calpine Corporation

[Docket No. EL01–71–000]

Take notice that on April 27, 2001,Calpine Corporation (Calpine)submitted for filing a Petition for anEnforcement Action and/or DeclaratoryOrder and Request for ExpeditedTreatment pursuant to Section210(h)(2)(B) of the Public UtilityRegulatory Policies Act of 1978(PURPA), 16 U.S.C.A.§ 824a–3(h)(2)(B)(2000), and Rule 207 of theCommission’s Rules of Practice andProcedure, 18 CFR 385.207.

Calpine alleges that Decision 01–03–067, issued by the California PublicUtilities Commission (CPUC) on March28, 2001 (Avoided Cost Decision),violates PURPA Section 210, 16 U.S.C.§ 824a–3 which requires, inter alia, thatrates for purchases from QFs shall notexceed incremental cost to the utility,nor shall those rates discriminateagainst qualifying cogenerators or smallpower producers. The Avoided CostDecision changes the formula by whichavoided cost rates are calculated.

This change violates PURPA, Calpinealleges, for three reasons: (i) TheAvoided Cost Decision sets avoidedcosts in an arbitrary and unlawfulmanner, without any relationshipwhatsoever to the purchasing utility’s‘‘full avoided costs,’’ thus violating thePURPA avoided cost mandate; (ii) theAvoided Cost Decision subjects QFs toimproper CPUC rate regulation, incontravention of PURPA and; (iii) theAvoided Cost Decision sets payments toQFs at price levels at which QFs cannoteconomically generate, contrary to thePURPA objective of encouraginggeneration. Calpine asks thisCommission to institute an enforcementaction and/or to issue a declaratoryorder, and requests that it do so usingexpedited treatment, to grant relief tothe QFs from the Avoided CostDecision.


16. Black Hills Corporation, n/k/a,Black Hills Power, Inc.

[Docket No. ER01–1918–000]

Take notice that on May 1, 2001,Black Hills Corporation, d/b/a BlackHills Power, Inc., a wholly-ownedsubsidiary of Black Hills Corporation,Inc. (a South Dakota holdingcorporation), tendered for filing thefollowing long-term service agreements:(1) Surplus Energy Marketing

Agreement Between Black Hills Power,Inc. and PacifiCorp Power Marketing,Inc., and (2) Exchange AgreementBetween Black Hills Power, Inc., andPacifiCorp Power Marketing, Inc.

Copies of these filings were suppliedto PacifiCorp Power Marketing, Inc.


17. Exelon Energy Company

[Docket No. ER01–1919–000]

Take notice that on May 1, 2001,Exelon Energy Company (ExelonEnergy) tendered for filing to theFederal Energy Regulatory Commission(FERC or the Commission) a Notice ofSuccession notifying the Commissionthat it has succeeded to Unicom Energy,Inc. FERC Rate Schedule No. 1, whichwas approved by Commission order atDocket No. ER00–2429, as amended andsupplemented, in conformance withOrder No. 614. Exelon Energy alsorefiled the Unicom Energy rate scheduleas an Exelon Energy rate schedule.

Unicom Energy, Inc. has changed itsname to Exelon Energy Company as partof an internal restructuring in which itsoperations were combined with PECOEnergy Company d/b/a Exelon Energy, asuccessor to Horizon Energy Company.Accordingly, Exelon Energy Companyhereby cancels the power sales tariff ofHorizon Energy Company and has fileda Notice of Cancellation of the HorizonEnergy rate schedule as part of thisfiling.


18. Idaho Power Company

[Docket No. ER01–1920–000]

Take notice that on May 1, 2001,Idaho Power Company tendered forfiling a revised long-term serviceagreement under its open accesstransmission tariff in the above-captioned proceeding.


19. PacifiCorp Power Marketing, Inc.

[Docket No. ER01–1921–000]

Take notice that on May 1, 2001,PacifiCorp Power Marketing, Inc.tendered for filing with the FederalEnergy Regulatory Commission anExchange Agreement between BlackHills Power, Inc. and PacifiCorp PowerMarketing, Inc., dated as of April 3,2001.




20. Tucson Electric Power Company

[Docket No. ER01–1922–000]Take notice that on May 1, 2001,

Tucson Electric Power Companytendered for filing one (1) umbrellaservice agreement (for short-term firmservice) and one (1) service agreement(for non-firm service) pursuant to Part IIof Tucson’s Open Access TransmissionTariff, which was filed in Docket No.ER01–208–000.

The details of the service agreementsare as follows:

1. Umbrella Agreement for Short-Term Firm Point-to-Point TransmissionService dated as of January 30, 2001 byand between Tucson Electric PowerCompany and Colorado RiverCommission—FERC Electric Tariff Vol.No. 2, Service Agreement No. 155. Noservice has commenced at this time.

2. Form of Service Agreement forNon-Firm Point-to-Point TransmissionService dated as of January 30, 2001 byand between Tucson Electric PowerCompany and Colorado RiverCommission—FERC Electric Tariff Vol.No. 2, Service Agreement No. 156. Noservice has commenced at this time.


21. American Electric Power ServiceCorporation


American Electric Power ServiceCorporation tendered for filing a letteragreement between Appalachian PowerCompany and Panda Culloden Power,L.P.

AEP requests an effective date of June29, 2001.

Copies of Appalachian PowerCompany’s filing have been served uponthe West Virginia Public ServiceCommission.


22. UNITIL Power Corp.


UNITIL Power Corp. tendered for filingpursuant to Schedule II Section H ofSupplement No. 1 to Rate ScheduleFERC Number 1, the UNITIL SystemAgreement, the following material:

1. Statement of all sales and billingtransactions for the period January 1,2000 through December 31, 2000 alongwith the actual costs incurred byUNITIL Power Corp. by FERC account.

2. UNITIL Power Corp. rates billedfrom January 1, 2000 to December 31,2000 and supporting rate development.


23. New England Power Pool

[Docket No. ER01–1926–000]

Take notice that on May 1, 2001, theNew England Power Pool (NEPOOL)Participants Committee tendered forfiling for acceptance materials to permitNEPOOL to expand its membership toinclude Axia Energy, L.P. (Axia) and toterminate the memberships of EntergyPower Marketing Corporation (EPMC)and Koch Energy Trading, Inc. NEPOOLrequests a February 1, 2001 effectivedate for the commencement of Axia’sparticipation in and the termination ofEPMC and KETI from NEPOOL.

The Participants Committee statesthat copies of these materials were sentto the New England state governors andregulatory commissions and theParticipants in NEPOOL.


24. Southern California EdisonCompany

[Docket No. ER01–1927–000]

Take notice that on May 1, 2001,Southern California Edison Company(SCE) tendered for filing theInterconnection Facilities Agreement(Interconnection Agreement) betweenSCE and the City of Riverside(Riverside).

This agreement specifies the termsand conditions pursuant to which SCEwill construct certain interconnectionfacilities to facilitate the wholesaleDistribution Service SCE provides toRiverside pursuant to SCE’s WholesaleDistribution Access Tariff, FERCElectric Tariff Original Volume No. 5.

Copies of this filing were served uponthe Public Utilities Commission of theState of California and Riverside.


25. Central Maine Power Company

[Docket No. ER01–1928–000]

Take notice that on May 1, 2001,Central Maine Power Company (CMP),tendered for filing as an initial rateschedule pursuant to Section 35.12 ofthe Federal Energy RegulatoryCommission’s (the Commission)regulations, 18 C.F.R. § 35.12, (i) anunexecuted Form of Service Agreementfor Non-Firm Local Point-to-PointTransmission Service between CMP andS.D. Warren Company (S.D. Warren),and (ii) an unexecuted Form of ServiceAgreement for Non-Firm Local Point-to-

Point Transmission Service betweenCMP and Engage Energy America LLC(Engage), designated as Original ServiceAgreements 123 and 124, respectively,to CMP’s FERC Electric Tariff, FifthRevised Volume No. 3.

CMP is requesting that theseunexecuted transmission serviceagreements become effective March 30,2001.

Copies of this filing have been servedupon the Commission, the Maine PublicUtilities Commission, S.D. Warren, andEngage.


26. Jersey Central Power & LightCompany; Metropolitan EdisonCompany; Pennsylvania ElectricCompany


Jersey Central Power & Light Company,Metropolitan Edison Company andPennsylvania Electric Company(individually doing business as GPUEnergy), submitted for filing a Notice ofCancellation of the Service Agreementbetween GPU Service Corporation andNational Electric Associates, LP, FERCElectric Tariff, Original Volume No. 1,Service Agreement No. 21.

GPU Energy requests that cancellationbe effective June 27, 2001.




Jersey Central Power & Light Company,Metropolitan Edison Company andPennsylvania Electric Company(individually doing business as ‘‘GPUEnergy’’) submitted for filing a Notice ofCancellation of the Service Agreementbetween GPU Service Corporation andFederal Energy Sales, Inc., FERCElectric Tariff, Original Volume No. 1,Service Agreement No. 41.

GPU Energy requests that cancellationbe effective the June 27, 2001.




Jersey Central Power & Light Company,



Metropolitan Edison Company andPennsylvania Electric Company(individually doing business as ‘‘GPUEnergy’’) submitted for filing a Notice ofCancellation of the Service Agreementbetween GPU Service, Inc. and ThePower Company of America, LP, FERCElectric Tariff, Original Volume No. 1,Service Agreement No. 64.




[Docket No. ER01–1932–000]

Take notice that on May 1, 2001,Jersey Central Power & Light Company,Metropolitan Edison Company andPennsylvania Electric Company(individually doing business as GPUEnergy) submitted for filing a Notice ofCancellation of the Service Agreementbetween GPU Energy and WheeledElectric Power Company, FERC ElectricTariff, Original Volume No. 1, ServiceAgreement No. 90.




[Docket No. ER01–1933–000]

Take notice that on May 1, 2001,Jersey Central Power & Light Company,Metropolitan Edison Company andPennsylvania Electric Company(individually doing business as GPUEnergy) submitted for filing a Notice ofCancellation of the Service Agreementbetween GPU Service Corporation andMidCon Power Services Corporation(now Kinder Morgan, Inc.), FERCElectric Tariff, Original Volume No. 1,Service Agreement No. 19.



31. Ameren Services Company

[Docket No. ER01–1934–000]

Take notice that on April 30, 2001,Ameren Services Company (ASC)tendered for filing a Service Agreementfor Firm Point-to-Point TransmissionServices between ASC and Axia Energy,Inc. (customer). ASC asserts that the

purpose of the Agreement is to permitASC to provide transmission service tocustomer pursuant to Ameren’s OpenAccess Tariff.

ASC respectfully requests that theService Agreement become effectiveApril 1, 2001.



[Docket No. ER01–1935–000]

Take notice that on May 1, 2001, theNew England Power Pool (NEPOOL)Participants Committee filed foracceptance materials to permit NEPOOLto expand its membership to includeDominion Retail, Inc. (DRI), ExelonGeneration Company, LLC (Exelon);Indeck Energy-Alexandria, LLC (IEA),and Massachusetts Public InterestResearch Group, Inc. (MASSPIRG ).

The Participants Committee requestsan effective date of May 1, 2001 forcommencement of participation inNEPOOL by DRI, Exelon, andMASSPIRG, and July 1, 2001 for thecommencement of participation inNEPOOL by IEA.

The Participants Committee statesthat copies of these materials were sentto the New England state governors andregulatory commissions and theParticipants in NEPOOL.


33. Florida Power Corporation

[Docket No. ER01–1924–000]

Take notice that on May 1, 2001,Florida Power Corporation (FloridaPower), tendered for filing revisions tothe capacity charges, reservation feesand energy adders for variousinterchange services provided byFlorida Power pursuant to interchangecontracts as follows:

Rate sched-ule Customer

65 ............... Southeastern Power Adminis-tration.

80 ............... Tampa Electric Company.81 ............... Florida Power & Light Com-

pany.82 ............... City of Homestead.86 ............... Orlando Utilities Commission.88 ............... Gainesville Regional Utility.91 ............... Jacksonville Electric Authority.92 ............... City of Lakeland.94 ............... Kissimmee Utility Authority.95 ............... City of St. Cloud.101 ............. City of Lake Worth.102 ............. Florida Power & Light Com-

pany.103 ............. City of Starke.104 ............. City of New Smyrna Beach.

Rate sched-ule Customer

105 ............. Florida Municipal Power Agen-cy.

108 ............. City of Key West.119 ............. Reedy Creek Improvement Dis-

trict.122 ............. City of Tallahassee.128 ............. Seminole Electric Cooperative,

Inc.139 ............. Oglethorpe Power Corporation.141 ............. City of Vero Beach.142 ............. Big Rivers Electric Corporation.148 ............. Alabama Electric Cooperative,

Inc.153 ............. Enron Power Marketing, Inc.154 ............. Catex Vitol Electric, L.L.C.155 ............. Louis Dreyfus Electric Power,

Inc.156 ............. Electric Clearing House, Inc.157 ............. LG&E Power Marketing, Inc.158 ............. MidCon Power Service Corp.159 ............. Koch Power Services Com-

pany.161 ............. Citizens Lehman Power Sales.162 ............. AES Power, Inc.163 ............. Intercoast Power Marketing

Company.164 ............. Valero Power Service Com-

pany.167 ............. NorAm Energy Services, Inc.168 ............. Western Power Services.169 ............. CNG Power Services Corpora-

tion.170 ............. Calpine Power Services Com-

pany.171 ............. SCANA Energy Marketing, Inc.172 ............. PanEnergy Trading & Market

Services.173 ............. Coral Power, L.L.C.174 ............. Aquila Power Corporation.175 ............. The Energy Authority, Inc.176 ............. NP Energy Inc.177 ............. Morgan Stanley Capital Group,

Inc.

The interchange services which areaffected by these revisions are (1)Service Schedule A—EmergencyService; (2) Service Schedule B—ShortTerm Firm Service; (3) Service ScheduleD—Firm Service; (4) Service ScheduleF—Assured Capacity and EnergyService; (5) Service Schedule G—Backup Service; (6) Service ScheduleH—Reserve Service; (7) ServiceSchedule l—Regulation Service; (8)Service Schedule OS—OpportunitySales; (9) Service Schedule RE—Replacement Energy Service; (10)Contract for Assured Capacity andEnergy With Florida Power & LightCompany; (11) Contract for ScheduledPower and Energy with Florida Power &Light Company.

Florida Power also is tenderingchanges to the real power loss factorsunder its Open Access TransmissionTariff (OATT) and the OATT of CarolinaPower & Light Company.

Florida Power requests that theamended revised capacity charges,



reservation fees and energy adder bemade effective on May 1, 2001. FloridaPower requests waiver of theCommission’s sixty-day noticerequirement. If waiver is denied, FloridaPower requests that the filing be madeeffective 60 days after the filing date.

Copies of the filing were served oneach of the customer affected by thisfiling.


Standard Paragraph

E. Any person desiring to be heard orto protest such filing should file amotion to intervene or protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Rules 211and 214 of the Commission’s Rules ofPractice and Procedure (18 CFR 385.211and 385.214). All such motions orprotests should be filed on or before thecomment date. Protests will beconsidered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof these filings are on file with theCommission and are available for publicinspection. This filing may also beviewed on the Internet athttp://www.ferc.fed.us/online/rims.htm(call 202–208–2222 for assistance).Comments, protests, and interventionsmay be filed electronically via theinternet in lieu of paper. See, 18 CFR385.2001(a)(1)(iii) and the instructionson the Commission’s web site athttp://www.ferc.fed.us/efi/doorbell.htm.

David P. Boergers,Secretary.[FR Doc. 01–11769 Filed 5–9–01; 8:45 am]BILLING CODE 6717–01–P



[Docket No. EC01–92–000, et al.]

TransAlta USA Inc., et al.; Electric Rateand Corporate Regulation Filings

May 3, 2001.Take notice that the following filings

have been made with the Commission:

1. TransAlta USA Inc. and Gener S.A.

[Docket No. EC01–92–000]Take notice that on April 26, 2001,

TransAlta USA Inc. (TAUSA) and GenerS.A. (Gener) (collectively Applicants)

tendered for filing, pursuant to Section203 of the Federal Power Act, 16 U.S.C.824b (1994), and Part 33 of theCommission’s Regulations (18 CFR 33.1,et seq.), an Application for Commissionapproval for the sale by Gener, and thepurchase by TAUSA, of fifty percent ofthe capital stock in Merchant EnergyGroup of the Americas, Inc. (MEGA),which owns certain jurisdictional rateschedules. Upon consummation of theproposed transaction, MEGA will be awholly-owned subsidiary of TAUSA.


2. Arizona Public Service Company

Docket Nos. ER01–770–002 and ER01–917–002 (not consolidated)

Take notice that on April 30, 2001,Arizona Public Service Company (APS)tendered for filing an Amendment to theANPP Valley Transmission SystemParticipation Agreement between APS,Salt River Project AgriculturalImprovement and Power District, PublicService Company of New Mexico, andEl Paso Electric Company.

APS states that the Amendment to theANPP Participation Agreement is beingsubmitted in compliance with theCommission’s separate Letter Orders,issued on February 28, 2001, in theabove-captioned dockets.


3. PacifiCorp

[Docket No. ER01–1152–001]

Take notice that on April 30, 2001,PacifiCorp tendered for filing anamendment to its January 30, 2001 filingof a revised Exhibit C to the contract forInterconnections and TransmissionService between PacifiCorp and WesternArea Power Administration (Western),Contract No. 14–06–400–2436,Supplement No. 2 (PacifiCorp’s RateSchedule FERC No. 262). The revisionsmodify the rates charged to Western forBlock 2 transmission service.

PacifiCorp has requested an effectivedate of April 1, 2001.

Copies of this filing were supplied tothe Washington Utilities andTransportation Commission and thePublic Utility Commission of Oregon.


4. PJM Interconnection, L.L.C.

[Docket No. ER01–1889–000]

Take notice that on April 30, 2001,PJM Interconnection, L.L.C. (PJM),tendered for filing (i) an agreement for

network integration transmissionservice with Allegheny ElectricCooperative (Allegheny); and (ii) anagreement for network integrationtransmission service for Easton UtilitiesCommission (Easton).

Copies of this filing were served uponAllegheny, Easton, and the statecommissions within the PJM controlarea.


5. Dominion Nuclear Marketing II, Inc.

[Docket Nos. ER01–1890–000]

Take notice that on April 30, 2001,Dominion Nuclear Marketing II, Inc.(DNM II) tendered for filing serviceagreements providing for sales of powerto Duke Energy Trading and Marketing,L.L.C. (DETM) and Constellation PowerSource, Inc. (Constellation)(collectively, the Customers) underDNM II’s market-based rate sales tariff,FERC Electric Tariff, Original VolumeNo. 1 (the Tariff). DNM II requests thatthe Commission make the serviceagreements for DETM and Constellationeffective on April 1, 2001.

Copies of the filing were served uponthe Customers, the Virginia StateCorporation Commission and the NorthCarolina Utilities Commission.



[Docket No. ER01–1891–000]

Take notice that on April 30, 2001,the New England Power Pool (NEPOOL)tendered for filing changes to the NewEngland Power Pool Restated OpenAccess Transmission Tariff, a relatedImplementation Rule and a Market Ruleto make conforming changes for theimplementation of three-part biddingand Net Commitment PeriodCompensation. A July 1, 2001 effectivedate is requested.

NEPOOL states that copies of thesematerials were sent to the NEPOOLParticipants and the six New Englandstate governors and regulatorycommissions.


7. Michigan Electric TransmissionCompany and Consumers EnergyCompany

[Docket No. ER01–1892–000]

Take notice that on April 30, 2001,Consumers Energy Company(Consumers) tendered for filing a Noticeof Cancellation regarding former OATT



customers whose transmission serviceagreements terminated by their ownterms, effective December 31, 2000; andMichigan Electric TransmissionCompany (Michigan Transco) tenderedfor filing five revised tariff sheets for itsOpen Access Transmission Tariff,Michigan Transco Electric Tariff FERCNo. 1, with a proposed effective date ofApril 1, 2001. The tariff sheets are toreflect changes in the Indices ofCustomers related to Consumers’ Noticeof Cancellation and to correct certaintypographical errors. The revised sheetsthat were filed are First Revised SheetNos. 69, 106, 116, 170 and 171.

The filing was served upon theMichigan Public Service Commission,those listed in the Notice ofCancellation, and customers underMichigan Transco’s OATT.



[Docket No. ER01–1893–000]

Take notice that on April 27, 2001,Jersey Central Power & Light Company,Metropolitan Edison Company andPennsylvania Electric Company(individually doing business as GPUEnergy) tendered for filing a Notice ofCancellation of the Service Agreementbetween GPU Service Corporation andGlobal Petroleum Corporation (nowGlobal Companies LLC), FERC ElectricTariff, Original Volume No. 1, ServiceAgreement No. 36. GPU Energy requeststhat cancellation be effective the 27thday of June 2001.


9. Niagara Mohawk Power Corporation

[Docket No. ER01–1894–000]

Take notice that on April 30, 2001,Niagara Mohawk Power Corporation(Niagara Mohawk) tendered for filing anInterconnection Agreement betweenNiagara Mohawk Power Corporationand Athens Generating Company, L.P.for a 1230 MW (winter rating) naturalgas-fired combined cycle combustionturbine generating facility that is to beconstructed in the Town of Athens,Greene County, New York, dated as ofApril 27, 2001. The filing is designatedas FERC Electric Rate Schedule No. 307.

An Interconnection Agreementeffective date of May 15, 2001 isrequested and to the extent necessary,Niagara Mohawk requests waiver of anyCommission requirement that a rate

schedule be filed not less than 60 daysor more than 120 days from its effectivedate.


10. Tampa Electric Company

[Docket No. ER01–1896–000]

Take notice that on April 27, 2001,Tampa Electric Company (TampaElectric) tendered for filing updatedtransmission service rates under itsagreements to provide qualifying facilitytransmission service for MulberryPhosphates, Inc. (Mulberry), CargillFertilizer, Inc. (Cargill), and AuburndalePower Partners, Limited Partnership(Auburndale).

Tampa Electric proposes that theupdated transmission service rates bemade effective as of May 1, 2001, andtherefore requests waiver of theCommission’s notice requirement.

Copies of the filing have been servedon Mulberry, Cargill, Auburndale, andthe Florida Public Service Commission.


11. EOPT Power Group Nevada, Inc.

[Docket No. ER01–1897–000]

Take notice that on April 26, 2001,EOPT Power Group Nevada, Inc.tendered for filing for acceptance of itsRate Schedule FERC No. 1, the grantingof certain blanket approvals, includingthe authority to sell electricity atmarket-based rates, and the waiver ofcertain of the Commission’sRegulations.


12. Tampa Electric Company

[Docket No. ER01–1898–000]

Take notice that on April 27, 2001,Tampa Electric Company (TampaElectric) tendered for filing updatedcaps on energy charges for emergencyassistance service provided under itsinterchange service contract withAlabama Power Company, GeorgiaPower Company, Gulf Power Company,Mississippi Power Company, andSavannah Electric and Power Company(collectively, Southern Companies).

Tampa Electric requests that theupdated caps on charges be madeeffective as of May 1, 2001, andtherefore requests waiver of theCommission’s notice requirement.

Tampa Electric states that a copy ofthe filing has been served uponSouthern Companies and the FloridaPublic Service Commission.


13. Zapco Power Marketers, Inc.

[Docket No. ER01–1899–000]

Take notice that on April 26, 2001,Zapco Power Marketers, Inc. tenderedfor filing a Notice of Termination.

Notice is hereby given that effectiveApril 12, 2001 Rate Schedule FERC No.ER98–689–000 effective date December29, 1997 and filed with the Commissionis to be canceled because Zapco hasbeen inactive since it filed with theCommission and has been dissolved asof April 12, 2001.

Notice of the proposed cancellationhas not been served upon any publicutilities since there are no affectedpurchasers.



[Docket No. ER01–1900–000]

Take notice that on April 30, 2001,the American Electric Power ServiceCorporation (AEPSC) tendered for filingexecuted Interconnection and OperationAgreement between Columbus SouthernPower Company and Duke EnergyFranklin LLC. The agreement ispursuant to the AEP Companies’ OpenAccess Transmission Service Tariff(OATT) that has been designated as theOperating Companies of the AmericanElectric Power System FERC ElectricTariff Revised Volume No. 6, effectiveJune 15, 2000.

AEP requests an effective date of June25, 2001.

A copy of the filing was served uponthe Ohio Public Utilities Commission.


15. Deseret Generation & TransmissionCo-operative, Inc.

[Docket No. ER01–1901–000]

Take notice that on April 30, 2001,Deseret Generation & Transmission Co-operative, Inc. (Deseret) tendered forfiling an amendment to Rate ScheduleNo. 13, a Contract for Interconnectionsand Transmission Service BetweenDeseret and the United StatesDepartment of Energy, Western AreaPower Administration, Contract No. 2–07–40–P0716, dated November 10,1982.

Deseret requests an effective date ofApril 1, 2001. Copies of this filing havebeen served on the Western Area PowerAdministration.




16. Southern Company Services, Inc.

[Docket No. ER01–1902–000]

Take notice that on April 27, 2001,Southern Company Services, Inc., asagent for Georgia Power Company(Georgia Power), tendered for filing theInterconnection Agreement betweenGeorgia Power and Augusta Energy LLC(Augusta Energy) (the Agreement), as aservice agreement under SouthernOperating Companies’ Open AccessTransmission Tariff (FERC ElectricTariff, Fourth Revised Volume No. 5)and is designated as Service AgreementNo. 376.

The Agreement provides the generalterms and conditions for theinterconnection and parallel operationof Augusta Energy’s electric generatingfacility located near Augusta, RichmondCounty, Georgia. The Agreementterminates forty (40) years from theeffective date unless terminated earlierby mutual written agreement.



[Docket No. ER01–1903–000]

Take notice that on April 30, 2001,the American Electric Power ServiceCorporation (AEPSC) tendered for filingexecuted Interconnection Agreementsbetween (1) West Texas UtilitiesCompany and Indian Mesa PowerPartners I LP and (2) West TexasUtilities Company and Indian MesaPower Partners II LP. The agreementsare pursuant to the AEP Companies’Open Access Transmission ServiceTariff (OATT) that has been designatedas the Operating Companies of theAmerican Electric Power System FERCElectric Tariff Revised Volume No. 6,effective June 15, 2000.

AEPSC requests an effective date ofJune 26, 2001 for each of theInterconnection Agreements. A copy ofthe filing was served upon the PublicUtility Commission of Texas (PUCT).


18. Virginia Electric and PowerCompany

[Docket No. ER01–1904–000]

Take notice that on April 27, 2001,Virginia Electric and Power Company(Dominion Virginia Power or theCompany) tendered for filing thefollowing:

1. Service Agreement for Firm Point-to-Point Transmission Service byVirginia Electric and Power Company toAxia Energy, LP designated as ServiceAgreement No. 318 under theCompany’s FERC Electric Tariff, SecondRevised Volume No. 5;

2. Service Agreement for Non-FirmPoint-to-Point Transmission Service byVirginia Electric and Power Company toAxia Energy, LP designated as ServiceAgreement No. 319 under theCompany’s FERC Electric Tariff, SecondRevised Volume No. 5.

The foregoing Service Agreements aretendered for filing under the OpenAccess Transmission Tariff to EligiblePurchasers effective June 7, 2000. Underthe tendered Service Agreements,Dominion Virginia Power will providepoint-to-point service to Axia Energy,LP under the rates, terms and conditionsof the Open Access Transmission Tariff.Dominion Virginia Power requests aneffective date of April 27, 2001, the dateof filing of the Service Agreements.

Copies of the filing were served uponAxia Energy, LP, the Virginia StateCorporation Commission, and the NorthCarolina Utilities Commission.


19. Pacific Gas and Electric Company

[Docket No. ER01–1905–000]

Take notice that on April 27, 2001,Pacific Gas and Electric Company(PG&E) tendered for filing a Notice ofTermination of the Power PlantOperations Agreement between PacificGas and Electric Company and CentralCalifornia Power Agency No. 1 for theColdwater Creek Geothermal PowerPlant, PG&E Rate Schedule FERC No.119.

Copies of this filing have been servedupon Central California Power AgencyNo. 1, the California System OperatorCorporation (ISO) and the CaliforniaPublic Utilities Commission.

PG&E has requested certain waivers.Comment date: May 18, 2001, in

accordance with Standard Paragraph Eat the end of this notice.

20. UtiliCorp United Inc.

[Docket No. ER01–1906–000]

Take notice that on April 27, 2001,UtiliCorp United Inc. (UtiliCorp)tendered for filing Service AgreementNo. 103 under UtiliCorp’s FERC ElectricTariff, Third Revised Volume No. 25, ashort-term firm point-to-pointtransmission service agreement betweenUtiliCorp’s WestPlains Energy-Kansasdivision and Service Agreement No. 108under UtiliCorp’s FERC Electric Tariff,

Third Revised Volume No. 24 and AxiaEnergy, L.P.

UtiliCorp requests an effective datefor the service agreement of April 12,2001.


21. Ameren Services

[Docket No. ER01–1907–000]

Take notice that on April 27, 2001,Ameren Services Company (ASC)tendered for filing an Illinois RetailNetwork Integration TransmissionService Agreement and Illinois RetailNetwork Operating Agreement betweenASC and Edgar Electric CooperativeAssociation d/b/a EnerStar Power Corp.ASC asserts that the purpose of theAgreement is to permit ASC to providetransmission service to unbundledIllinois retail customers of EnerStarPower Corp. pursuant to Ameren’s OpenAccess Tariff.


22. Upper Peninsula Power Company

[Docket No. ER01–1908–000]

Take notice that on April 27, 2001,Upper Peninsula Power Company(UPPCO) tendered for filing aSupplement to Agreement for WholesaleElectric Power Service between UPPCOand the City of Escanaba, Michigan(Escanaba) (UPPCO Rate Schedule FERCNo. 26). UPPCO states that theSupplement reduces the amount of firmpower that it is obligated to provide toEscanaba during the Summer of 2001.


23. Tucson Electric Power Company

[Docket No. ER01–1909–000]

Take notice that on April 27, 2001,Tucson Electric Power Companytendered for filing one (1) UmbrellaService Agreement (for Short-Term FirmService) and one (1) Service Agreement(for Non-Firm Service) pursuant to PartII of Tucson’s Open AccessTransmission Tariff, which was filed inDocket No. ER01–208–000.

The details of the service agreementsare as follows:

1. Umbrella Agreement for Short-Term Firm Point-to-Point TransmissionService dated as of April 9, 2001 by andbetween Tucson Electric PowerCompany and Salt River Project,Transmission & GenerationDispatching—FERC Electric Tariff Vol.No. 2, Service Agreement No. 166–A.No service has commenced at this time.



2. Form of Service Agreement forNon-Firm Point-to Point TransmissionService dated as of April 9, 2001 by andbetween Tucson Electric PowerCompany and Salt River Project,Transmission & GenerationDispatching—FERC Electric Tariff Vol.No. 2, Service Agreement No. 167. Noservice has commenced at this time.


Standard ParagraphE. Any person desiring to be heard or

to protest such filing should file amotion to intervene or protest with theFederal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426, in accordance with Rules 211and 214 of the Commission’s Rules ofPractice and Procedure (18 CFR 385.211and 385.214). All such motions orprotests should be filed on or before thecomment date. Protests will beconsidered by the Commission indetermining the appropriate action to betaken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a motion to intervene. Copiesof these filings are on file with theCommission and are available for publicinspection. This filing may also beviewed on the Internet at http://www.ferc.fed.us/online/rims.htm (call202–208–2222 for assistance).Comments, protests, and interventionsmay be filed electronically via theinternet in lieu of paper. See, 18 CFR385.2001(a)(1)(iii) and the instructionson the Commission’s web site athttp://www.ferc.fed.us/efi/doorbell.htm.

David P. Boergers,Secretary.[FR Doc. 01–11768 Filed 5–9–01; 8:45 am]BILLING CODE 6717–01–P



Notice of Transfer of License andSoliciting Comments, Motions ToIntervene, and Protests

May 4, 2001.

Take notice that the followingapplication has been filed with theCommission and is available for publicinspection:

a. Application Type: Transfer ofLicense.

b. Project No: 2609–021.c. Date Filed: March 28, 2001.d. Applicants: Curtis/Palmer

Hydroelectric Company, LP

International Paper Company(Transferors), an Curtis/PalmerHydroelectric Company, LP(Transferee).

e. Name and Location of Project: TheCurtis/Palmer Hydroelectric Project islocated on the Hudson River in Saratogaand Waren Counties, New York.

f. Filed Pursuant to: Federal PowerAct, 16 U.S.C. 791(a)–825(r)

g. Applicant Contact: Mr. William J.Madden, Jr. and John A. Whittaker, IV,attorneys for the transferors, Winstonand Strawn, 1400 L Street NW.,Washington, DC 20005–3502, (202) 371–5700.

h. FERC Contact: Any questions onthis notice should be addressed to Mr.Lynn R. Miles at (202) 219–2671.

i. Deadline for filing comments and ormotions: June 11, 2001.

All documents (original and eightcopies) should be filed with: David P.Boergers, Secretary, Federal EnergyRegulatory Commission, 888 FirstStreet, NE., Washington DC 20426.Comments, protests and interventionsmay be filed electronically via theinternet in lieu of paper. See, 18 CFR385.2001(a)(1)(iii) and the instructionson the Commission’s web site athttp://www.ferc.fed.us/efi/doorbell.htm.

Please include the project number (P–2609–021) on any comments or motionsfiled.

j. Description of Proposal: Curtis/Palmer Hydroelectric Company, LP(CPHC) and International PaperCompany (IPC), co-licensees, requestCommission approval for a partialtransfer of the license for the projectfrom CPHC and IPC CPHC as solelicensee. CPHC is a New York limitedpartnership and all of the interests inthe partnership are currently held bysubsidiaries of IPC.

k. Locations of the application: Acopy of the application is available forinspection and reproduction at theCommission’s Public Reference Room,located at 888 First Street, NE., Room2A, Washington, DC 20426, or by calling(202) 208–1371. The application may beviewed on the web at www.ferc.fed.us/online/rims.htm (Call (202) 208–2222for assistance). A copy is also availablefor inspection and reproduction at theaddress in item g above.

l. Individuals desiring to be includedon the Commission’s mailing list shouldso indicate by writing to the Secretaryof the Commission.

Comments, Protests, or Motions toIntervene—Anyone may submitcomments, a protest, or a motion tointervene in accordance with therequirements of Rules of Practice andProcedure, 18 CFR 385.210, .211, .214.In determining the appropriate action to

take, the Commission will consider allprotests or other comments filed, butonly those who file a motion tointervene in accordance with theCommission’s Rules may become aparty to the proceeding. Any comments,protests, or motions to intervene mustbe received on or before the specifiedcomment date for the particularapplication.

Filing and Services of ResponsiveDocuments—Any filings must bear inall capital letters the title‘‘COMMENTS’’, ‘‘PROTEST’’, OR‘‘MOTION TO INTERVENE’’, asapplicable, and the Project Number ofthe particular application to which thefiling refers. An additional copy must besent to the Direct, Division ofHydropower Administration andCompliance, Federal Energy RegulatoryCommission, at the above-mentionedaddress. A copy of any motion tointervene must also be served upon eachrepresentative of the Applicantspecified in the particular application.

Agency Comments—Federal, state,and local agencies are invited to filecomments on the described application.A copy of the application may beobtained by agencies directly from theApplicant. If an agency does not filecomments within the time specified forfiling comments, it will be presumed tohave no comments. One copy of anagency’s comments must also be sent tothe Applicant’s representatives.




Notice of Application Accepted forFiling and Soliciting Comments,Protests, and Motions to Intervene

May 4, 2001.

Take notice that the followinghydroelectric application has been filedwith the Commission and is availablefor public inspection:

a. Type of Application: PreliminaryPermit.

b. Project No.: 11895–000.c. Date filed: February 20, 2001.d. Applicant: Malad High Drop

Hydropower, Inc.e. Name and Location of Project: The

Malad High Drop Hydropower Projectwould be located on the Malad River inGooding County, Idaho.

f. Filed Pursuant to: Federal PowerAct, 16 USC §§ 791(a)–825(r).



g. Applicant contacts: Mr. RodneySmith or Mr. Silvio Coletti, Malad HighDrop Hydropower, Inc., 2727 MerrimacPlace, Boise, ID 83709, (208) 562–1527,fax (208) 562–8664.

h. FERC Contact: Tom Papsidero,(202) 219–2715.

i. Deadline for filing comments,protests, and motions to intervene: 60days from the issuance date of thisnotice.

All documents (original and eightcopies) should be filed with: David P.Boergers, Secretary, Federal EnergyRegulatory Commission, 888 FirstStreet, NE, Washington, DC 20426.Motions to intervene, protests, andcomments may be filed electronicallyvia the internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://wwww.ferc.fed.us/efi/doorbell.htm.

Please include the project number (P–11895–000) on any comments ormotions filed.

The Commission’s Rules of Practiceand Procedure require all intervenersfiling documents with the Commissionto serve a copy of the document on eachperson in the official service list for theproject. Further, if an intervener filescomments or documents with theCommission relating to the merits of anissue that may affect the responsibilitiesof a particular resource agency, theymust also serve a copy of the documenton that resource agency.

j. Description of Project: The proposedproject, using the existing Thorpe andJustice Ditch dams, would consist of: (1)A 600-foot-long, 47-inch-diameter steelpenstock; (2) a concrete powerhousecontaining two generating units with atotal installed capacity of 4.5 megawatts:(3) a one-mile-long, 138–kVtransmission line; and (4) appurtenantfacilities. The project would have anaverage annual generation of 22.2 GWh.

k. A copy of the publication isavailable for inspection andreproduction at the Commission’sPublic Reference Room, located at 888First Street, NE, Room 2A, Washington,DC 20426, or by calling (202) 208–1371.The application may be viewed onhttp://www.ferc.fed.us/online/rims.htm(call (202) 208–2222 for assistance). Acopy is also available for inspection andreproduction at the address in item gabove.

l. Preliminary Permit—Anyonedesiring to file a competing applicationfor preliminary permit for a proposedproject must submit the competingapplication itself, or a notice of intent tofile such an application, to theCommission on or before the specifiedcomment date for the particular

application (see 18 CFR 4.36).Submission of a timely notice of intentallows an interested person to file thecompeting preliminary permitapplication no later than 30 days afterthe specified comment date for theparticular application. A competingpreliminary permit application mustconform with 18 CFR 4.30(b) and 4.36.

m. Preliminary Permit—Any qualifieddevelopment applicant desiring to file acompeting development applicationmust submit to the Commission, on orbefore a specified comment date for theparticular application, either acompeting development application or anotice of intent to file such anapplication. Submission of a timelynotice of intent to file a developmentapplication allows an interested personto file the competing application nolater than 120 days after the specifiedcomment date for the particularapplication. A competing licenseapplication must conform with 18 CFR4.30(b) and 4.36.

n. Notice of intent—A notice of intentmust specify the exact name, businessaddress, and telephone number of theprospective applicant, and must includean unequivocal statement of intent tosubmit, if such an application may befiled, either a preliminary permitapplication or a developmentapplication (specify which type ofapplication). A notice of intent must beserved on the applicant(s) named in thispublic notice.

o. Proposed Scope of Studies underPermit—A preliminary permit, if issued,does not authorize construction. Theterm of the proposed preliminary permitwould be 36 months. The workproposed under the preliminary permitwould include economic analysis,preparation of preliminary engineeringplans, and a study of environmentalimpacts. Based on the results of thesestudies, the Applicant would decidewhether to proceed with the preparationof a development application toconstruct and operate the project.

p. Comments, Protests, or Motions toIntervene—Anyone may submitcomments, a protest, or a motion tointervene in accordance with therequirements of Rules of Practice andProcedure, 18 CFR 385.210, .211, .214.In determining the appropriate action totake, the Commission will consider allprotests or other comments filed, butonly those who file a motion tointervene in accordance with theCommission’s Rules may become aparty to the proceeding. Any comments,protests, or motions to intervene mustbe received on or before the specifiedcomment date for the particularapplication.

q. Filing and Service of ResponsiveDocuments—Any filing must bear in allcapital letters the title ‘‘COMMENTS’’,‘‘NOTICE OF INTENT TO FILECOMPETING APPLICATION’’,‘‘COMPETING APPLICATION’’,‘‘PROTEST’’, or ‘‘MOTION TOINTERVENE’’, as applicable, and theProject Number of the particularapplication to which the filing refers.Any of the above-named documentsmust be filed by providing the originaland the number of copies provided bythe Commission’s regulations to: TheSecretary, Federal Energy RegulatoryCommission, 888 First Street, NE.,Washington, DC 20426. An additionalcopy must be sent to Director, Divisionof Hydropower Administration andCompliance, Federal Energy RegulatoryCommission, at the above-mentionedaddress. A copy of any notice of intent,competing application or motion tointervene must also be served upon eachrepresentative of the Applicantspecified in the particular application.

r. Agency Comments—Federal, state,and local agencies are invited to filecomments on the described application.A copy of the application may beobtained by agencies directly from theApplicant. If any agency does not filecomments within the time specified forfiling comments, it will be presumed tohave no comments. One copy of anagency’s comments must also be sent tothe Applicant’s representatives.




Notice of Application and ApplicantPrepared Environmental AssessmentAccepted for Filing and SolicitingMotions To Intervene and Protests

May 4, 2001.Take notice that the following

hydroelectric application and ApplicantPrepared Environmental Assessment(APEA) has been filed with theCommission and is available for publicinspection:

a. Type of Application: Major NewLicense (Non-power).

b. Project No.: 2852–015.c. Date filed: February 27, 2001.d. Applicant: New York State Electric

& Gas Corporation.e. Name of Project: Keuka Project.f. Location: The project is located on

the Waneta and Lamoka Lakes, Keuka



Lake, and Mud Creek, in Steuben andSchuyler Counties, New York. Theproject would not utilize any federallands or facilities.

g. Filed Pursuant to: Federal PowerAct 16 USC 791(a)–825(r).

h. Applicant Contact: Mr. Robert L.Malecki; Manager, Licensing &Environmental Operations; New YorkState Electric & Gas Corporation;Corporate Drive, Kirkwood IndustrialPark; Binghamton, NY 13902, (607)762–7763; and Ms. Carol Howland,Project Environmental Specialist; NewYork State Electric & Gas Corporation;Corporate Drive, Kirkwood IndustrialPark; Binghamton, NY 13902, (607)762–8881.

i. FERC Contact: Any questions onthis notice should be addressed toWilliam Guey-Lee, E-mail addresswilliam. [email protected], ortelephone (202) 219–2808.

j. Deadline for filing motions tointervene and protests: July 9, 2001.

All documents (original and eightcopies) should be filed with: David P.Boergers, Secretary, Federal EnergyRegulatory Commission, 888 First St.NE., Washington, DC 20426. Comments,protests, and motions to intervene maybe filed electronically via the Internet inlieu of paper. See 18 CFR385.2001(a)(1)(iii) and the instructionson the Commission’s web site athttp://www.ferc.fed.us/efi/doorbell.htm

The Commission’s Rules of Practiceand Procedure require all intervenorsfiling documents with the Commissionto serve a copy of that document oneach person whose name appears on theofficial service list for the project.Further, if an intervenor files commentsor documents with the Commissionrelating to the merits of an issue thatmay affect the responsibilities of aparticular resource agency, theintervenor must also serve a copy of thedocument on that resource agency.

k. Status of Environmental Analysis:The application is not ready forenvironmental analysis at this time. Asubsequent notice will be issued statingthat the application is ready forenvironmental analysis and will requestcomments, reply comments,recommendations, terms andconditions, and prescriptions at thattime.

l. Description of Project: The projectconsists of the following: (1) TheBradford Dam with an overall length ofabout 580 feet and crest elevation of1,099 feet msl, consisting of a concretesection, earthen embankments, outletworks, and spillway; (2) Waneta andLamoka Lakes with surface areas of 781acres and 826 acres at elevation 1,099feet msl, and total storage of 27,200

acre-feet; (3) a 9,30-foot-long powercanal having an average width of 48 feetand an average depth of 3 feet; (4) a twingated concrete box culvert, know asWayne Gates, measuring 8 feet high by6 feet wide; and (5) a 70-foot-long by 16-foot-high headgate structure. Under thenon-power license, the 3,450-foot-long,4-foot-diameter concrete penstock, the835-foot-long, 42-inch-diameter steelpenstock, and the 2.0-MW generatingunit would be removed.

m. Locations of the application: Acopy of the application is available forinspection and reproduction at theCommission’s Public Reference Room,located at 888 First Street, NE., Room2A, Washington, DC 20426, or by calling(202) 208–1371. The application may beviewed on the web at www.ferc.fed.us.Call (202) 208–2222 for assistance. Acopy is also available for inspection andreproduction at the address in item habove.

n. Protests or Motions to Intervene:Anyone may submit a protest or amotion to intervene in accordance withthe requirements of the Rules of Practiceand Procedures, 18 CFR 385.210, .211,and .214. In determining the appropriateaction to take, the Commission willconsider all protests filed, but onlythose who file a motion to intervene inaccordance with the Commission’sRules may become a party to theproceeding. Any protests or motions tointervene must be received on or beforethe specified deadline date for theparticular application and APEA.

o. All filings must: (1) Bear in allcapital letters the title ‘‘PROTEST,’’ or‘‘MOTION TO INTERVENE;’’ (2) setforth in the heading the name of theapplicant and the project number of theapplication and APEA to which thefiling responds; (3) furnish the name,address, and telephone number of theperson submitting the filing; and (4)otherwise comply with the requirementsof 18 CFR 385.2001 through 385.2005.Agencies may obtain copies of theapplication and APEA directly from theapplicant. Any of these documents mustbe filed by providing the original andthe number of copies required by theCommission’s regulations to: Secretary,Federal Energy Regulatory Commission,888 First Street, NE., Washington, DC20426. An additional copy must be sentto: Director, Division of Environmentaland Engineering Review, Office ofEnergy Projects, Federal EnergyRegulatory Commission, at the aboveaddress. Each filing must beaccompanied by proof of service on allpersons listed on the service listprepared by the Commission in this

proceeding, in accordance with 18 CFR4.34(b) and 385.2010.




Notice of Transfer of Licenses andSubstitution of Relicense Applicant,and Soliciting Comments, Protests,and Motions To Intervene


hydroelectric application has been filedwith the Commission and is availablefor public inspection:

a. Application Types: (1) Transfer ofLicenses and (2) Request forSubstitution of Applicant for NewLicense (in Project No. 2694–002).

b. Project Nos: 2601–004, 2602–002,2603–009, 2619–006, 2686–024, 2692–025, 2694–002, 2694–005, and 2698–025.

c. Date Filed: April 17, 2001.d. Applicant: Duke Power, a division

of Duke Energy Corporation, NantahalaArea (transferee).

e. Name and Location of Projects (allin North Carolina): The Bryson ProjectNo. 2601 is located on the OconalufteeRiver in Swain County. The DillsboroProject No. 2602 is located on theTuckasegee River in Jackson County.The Franklin Project No. 2603 is locatedon the Little Tennessee River in MaconCounty. The Mission Project No. 2619 islocated on the Hiwassee River in ClayCounty. The West Fork Project No. 2686is located on the West Fork of theTuckasegee River in Jackson County.The Nantahala Project No. 2692 islocated on the Nantahala River, DicksCreek, and White Oak Creek in Clay andMacon Counties. The Queens CreekProject No. 2694 is located on QueensCreek in Macon County. The East ForkProject No. 2698 is located on the EastFork of the Tuckasegee River in JacksonCounty. These projects do not occupyfederal or tribal lands.

f. Filed Pursuant to: Federal PowerAct, 16 U.S.C. 791(a)–825(r).

g. Applicant Contacts: Mr. PaulKinney, Law Department, Duke Power,P.O. Box 1244, Charlotte, NC 28201–1244, (704) 373–6609, and Mr. John A.Whittaker, IV, Winston & Strawn, 1400L Street NW, Washington, DC 20005,(202) 371–5766.

h. FERC Contact: James Hunter, (202)219–2839.



i. Deadline for filing comments and ormotions: June 11, 2001.

All documents (original and eightcopies) should be filed with: David P.Boergers, Secretary, Federal EnergyRegulatory Commission, 888 FirstStreet, NE., Washington, DC 20426.Comments, protests, and motions tointervene may be filed electronically viathe internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.

Please include the noted projectnumbers on any comments or motionsfiled.

j. Description of Proposal: NantahalaPower and Light Company (Nantahala),the original licensee of these projects,has merged into Duke EnergyCorporation (Duke) and no longer exists.Duke now seeks after-the-fact approvalof the transfer of the licenses fromNanatahala to Duke, as well as a namechange to Duke Power, a division ofDuke Energy Corporation, NantahalaArea. (In response to a notice filed byDuke on May 12, 2000, the Commissioninadvertently issued, on June 28, 2000,an order changing the name of thelicensee to Nantahala Power and Light,a division of Duke Energy Corporation.See 91 FERC ¶ 62,235, which of courselacked the prerequisite step ofCommission approval for transfer of theproject licenses to Duke.)

The transfer application was filedwithin five years of the expiration of thelicenses all of these projects. InHydroelectric Relicensing RegulationsUnder the Federal Power Act (54 Fed.Reg. 23,756; FERC Stats. and Regs.,Regs. Preambles 1986–1990 30,854 at p.31,437), the Commission declined toforbid all license transfers during thelast five years of an existing license, andinstead indicated that it wouldscrutinize all such transfer requests todetermine if the transfer’s primarypurpose was to give the transferee anadvantage in relicensing (id. at p. 31438n. 318).

The transfer application also containsa separate request for the substitution ofDuke Power, a division of Duke EnergyCorporation, Nantahala Area forNantahala Power and Light, a divisionof Duke Energy Corporation as theapplicant in the pending relicensingapplication, filed on September 27,1999, in Project No. 2694–002.

k. Locations of the application: Acopy of the application is available forinspection and reproduction at theCommission’s Public Reference Room,located at 888 First Street, NE, Room2A, Washington, DC 20426, or by calling(202) 208–1371. The application may be

viewed on the web at www.ferc.fed.us/online/rims.htm (Call (202) 208–2222for assistance). A copy is also availablefor inspection and reproduction at theaddresses in item g above.

1. Individuals desiring to be includedon the Commission’s mailing list shouldso indicate by writing to the Secretaryof the Commission.

Comments, Protests, or Motions toIntervene—Anyone may submitcomments, a protest, or a motion tointervene in accordance with therequirements of Rules of Practice andProcedure, 18 CFR 385.210, .211, .214.In determining the appropriate action totake, the Commission will consider allprotests or other commenters filed, butonly those who file a motion tointervene in accordance with theCommission’s Rules may become aparty to the proceeding. Any comments,protests, or motions to intervene mustbe received on or before the specifiedcomment date for the particularapplication.

Filing and Service of ResponsiveDocuments—Any filings must bear inall capital letters the title‘‘COMMENTS’’, ‘‘PROTEST’’,‘‘MOTION TO INTERVENE’’, asapplicable, and the Project Number ofthe particular application to which thefiling refers. An additional copy must besent to the Director, Division ofHydropower Administration andCompliance, Federal Energy RegulatoryCommission, at the above-mentionedaddress. A copy of any motion tointervene must also be served upon eachrepresentative of the Applicantspecified in the particular application.

Agency Comments—Federal, state,and local agencies are invited to filecomments on the described application.A copy of the application may beobtained by agencies directly from theApplicant. If an agency does not filecomments within the time specified forfiling comments, it will be presumed tohave no comments. One copy of anagency’s comments must also be sent tothe Applicant’s representatives.





Notice of Transfer of License andSoliciting Comments, Motions ToIntervene, and Protests


hydroelectric application has been filedwith the Commission and is availablefor public inspection:

a. Application Type: Transfer ofLicense.

b. Project No.: 8315–005.c. Date Filed: April 2, 2001.d. Applicant: International Paper

Company (Transferee).e. Name of project: Sartell.f. Location: On the Mississippi River

near Sartell, Stearns and BentonCounties, Minnesota. The project doesnot utilize federal lands.

g. Filed Pursuant to: Federal PowerAct, 16 U.S.C. 791(a)–825(r).

h. Applicant Contact: William J.Madden, Jr., Winston & Strawn, 1400 LStreet, N.W., Washington, D.C. 20005–3502, (202) 371–5700; MichaelChapman, Esq., International PaperCompany, 6400 Poplar Ave., Memphis,TN 38197, (901) 763–5888.

i. FERC Contact: Regina Saizan, (202)219–2673.

j. Deadline for filing comments ormotions: June 22, 2001.

All documents (original and eightcopies) should be filed with: David P.Boergers, Secretary, Federal EnergyRegulatory Commission, 888 FirstStreet, NE., Washignton, DC 20426.Comments, motions to intervene, andprotests may be filed electronically viathe internet in lieu of paper. See, 18CFR 385.2001(a)(1)(iii) and theinstructions on the Commission’s website at http://www.ferc.fed.us/efi/doorbell.htm.

Please include the Project Number(8315–005) on any comments ormotions filed.

k. Description of Transfer: ChampionInternational Corporation (Champion/Transferor), formerly a wholly-ownedsubsidiary of International PaperCompany (IPC/Transferee), has mergedinto IPC and no longer exists. IPC seeksCommission approval to transfer thelicense for the Sartell Project fromChampion to IPC.

l. Location of the Application: A copyof the application is available forinspection and reproduction at theCommission’s Public Reference Room,located at 888 First Street, NE., Room2A, Washington, DC 20426, or by calling(202) 208–1371. This filing may be



viewed on http://www.ferc.fed.us/online/rims.htm (call (202) 208–222 forassistance). A copy is also available forinspection and reproduction at theaddress in item h above.

m. Individuals desiring to be includedon the Commission’s mailing list shouldso indicate by writing to the Secretaryof the Commission.

n. Comments, Protests, or Motions toIntervene: Anyone may submitcomments, a protest, or a motion tointervene in accordance with therequirements of Rules of Practice andProcedure, 18 CFR 385.210, .211, .214.In determining the appropriate action totake, the Commission will consider allprotests or other comments filed, butonly those who file a motion tointervene in accordance with theCommission’s Rules may become aparty to the proceeding. Any comments,protests, or motions to intervene mustbe received on or before the specifiedcomment date for the particularapplication.

o. Filing and Service of ResponsiveDocuments: Any filings must bear in allcapital letters the title ‘‘COMMENTS’’,‘‘RECOMMENDATIONS FOR TERMSAND CONDITIONS’’, ‘‘PROTEST’’, or‘‘MOTION TO INTERVENE’’, asapplicable, and the Project Number ofthe particular application to which thefiling refers. A copy of any motion tointervene must also be served upon eachrepresentative of the Applicantspecified in the particular application.

p. Agency Comments: Federal, State,and local agencies are invited to filecomments on the described application.A copy of the application may beobtained by agencies directly from theApplicant. If an agency does not filecomments within the time specified forfiling comments, it will be presumed tohave no comments. One copy of anagency’s comments must also be sent tothe Applicant’s representatives.




[Docket No. RM98–1–000]

Regulations Governing Off-the-RecordCommunications; Public Notice

May 4, 2001.This constitutes notice, in accordance

with 18 CFR 385.2201(h), of the receipt

of exempt and prohibited off-the-recordcommunications.

Order No. 607 (64 FR 51222,September 22, 1999) requiresCommission decisional employees, whomake or receive an exempt or aprohibited off-the-recordcommunication relevant to the merits ofa contested on-the-record proceeding, todeliver a copy of the communication, ifwritten, or a summary of the substanceof any oral communication, to theSecretary.

Prohibited communications will beincluded in a public, non-decisional fileassociated with, but not part of, thedecisional record of the proceeding.Unless the Commission determines thatthe prohibited communication and anyresponses thereto should become part ofthe decisional record, the prohibited off-the-record communication will not beconsidered by the Commission inreaching its decision. Parties to aproceeding may seek the opportunity torespond to any facts or contentionsmade in a prohibited off-the-recordcommunication, and may request thatthe Commission place the prohibitedcommunication and responses theretoin the decisional record. TheCommission will grant such requestsonly when it determines that fairness sorequires. Any person identified below ashaving made a prohibited off-the-recordcommunication should serve thedocument on all parties listed on theofficial service list for the applicableproceeding in accordance with Rule2010, 18 CFR 385.2010.

Exempt off-the-recordcommunications will be included in thedecisional record of the proceeding,unless the communication was with acooperating agency as described by 40CFR 1501.6, made under 18 CFR385.2201(e)(1)(v).

The following is a list of exempt andprohibited off-the-recordcommunications received in the Officeof the Secretary within the preceding 14days. The documents may be viewed onthe Internet at http://www.ferc.fed.us/online/rims.htm (call 202–208–2222 forassistance).

Exempt

1. CP04–49–000, 04–23–01, BobbyeBiller

2. Project Nos. 10865 and 11495, 04–23–01, Steven W. Reneaud

3. Project No. 18, 04–23–01, ScottLarrando

4. Project No. 2899–000, 04–23–01,Scott Lorrando

5. CP01–49–000, 04–24–01, DouglasSipe

6. Project No. 1494, 04–25–01, JoanneMallet-Eakin

7. CP00–6–000, 04–25–01, James J.Slack

8. Project No. 2042, 04–25–01, FrankWinchell

9. Project No. 2042, 04–24–01, TimBachelder



[FRL–6977–1]

Notice of Agency InformationCollection Activities for SuperfundCooperative Agreements and StateContracts

AGENCY: Environmental ProtectionAgency.ACTION: Notice.

SUMMARY: In compliance with thePaperwork Reduction Act (44 U.S.C.3501 et seq.), this document announcesthat U.S. Environmental ProtectionAgency is planning to submit thefollowing continuing InformationCollection Request (ICR) to the Office ofManagement and Budget (OMB):Cooperative Agreements and StateContracts for Superfund ResponseActions (OMB Control No. 2010–0020;EPA ICR No. 1487.06) expiringSeptember 30, 2001. Before submittingthe ICR to OMB for review andapproval, EPA is soliciting comments onspecific aspects of the proposedinformation collection as describedbelow.

DATES: Comments must be submitted onor before July 9, 2001.ADDRESSES: Send comments to KirbyBiggs, Office of Emergency andRemedial Response, U.S. EnvironmentalProtection Agency, Mail Code 5204G,1200 Pennsylvania Avenue, NW.,Washington, DC 20460, (703) 308–8506,e-mail: [email protected] FURTHER INFORMATION CONTACT:Kirby Biggs, at the address andtelephone number listed above.SUPPLEMENTARY INFORMATION: Affectedentities: Entities potentially affected arethose States, Federally recognizedIndian tribes, and political subdivisionsthat apply to EPA for financialassistance under a Superfundcooperative agreement or a SuperfundState Contract.

Title: Cooperative Agreements andSuperfund Contracts for SuperfundResponse Actions (OMB Control No.



2010–0020; EPA ICR No. 1487.06)expiring 09/30/01.

Abstract: This ICR authorizes thecollection of information under 40 CFRpart 35, subpart O, which establishesthe administrative requirements forcooperative agreements funded underthe Comprehensive EnvironmentalResponse, Compensation, and LiabilityAct (CERCLA) for State, politicalsubdivisions, and Federally recognizedIndian tribal government responseactions. This regulation also codifies theadministrative requirements forSuperfund State Contracts for non-Statelead remedial responses. This regulationincludes only those provisionsmandated by CERCLA, required byOMB Circulars, or added by EPA toensure sound and effective financialassistance management. Theinformation is collected from applicantsand/or recipients of EPA assistance andis used to make awards, pay recipients,and collect information on how Federalfunds are being spent. EPA requires thisinformation to meet its Federalstewardship responsibilities. Recipientresponses are required to obtain abenefit (federal funds) under 40 CFRpart 31, ‘‘Uniform AdministrativeRequirements for Grants andCooperative Agreements to State andLocal Governments’ and under 40 CFRpart 35, ‘‘State and Local Assistance.’’An agency may not conduct or sponsor,and a person is not required to respondto, a collection of information unless itdisplays a currently valid OMB controlnumber. The OMB control numbers forEPA’s regulations are listed in 40 CFRpart 9 and 48 CFR Chapter 15.

The EPA would like to solicitcomments to:

(i) Evaluate whether the proposedcollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information will havepractical utility;

(ii) Evaluate the accuracy of theagency’s estimate of the burden of theproposed collection of information,including the validity of themethodology and assumptions used;

(iii) Enhance the quality, utility, andclarity of the information to becollected; and

(iv) Minimize the burden of thecollection of information on those whoare to respond, including through theuse of appropriate automated electronic,mechanical, or other technologicalcollection techniques or other forms ofinformation technology (e.g., permittingelectronic submission of responses).

Burden Statement: The currentannual reporting and record keepingburden for this collection is estimated to

average 11.58 hours per response. Thecurrent estimated number of annualrespondents is 361 and the estimatedtotal annual hour burden is 4,182 hours.The frequency of response is asrequired. Burden means the total time,effort, or financial resources expendedby persons to generate, maintain, retain,or disclose or provide information to orfor a Federal agency. This includes thetime needed to review instructions;develop, acquire, install, and utilizetechnology and systems for the purposesof collecting, validating, and verifyinginformation, processing andmaintaining information, and disclosingand providing information; adjust theexisting ways to comply with anypreviously applicable instructions andrequirements; train personnel to be ableto respond to a collection ofinformation; search data sources;complete and review the collection ofinformation; and transmit or otherwisedisclose the information.

Send comments regarding thesematters, or any other aspect of thisinformation collection, includingsuggestions for reducing the burden tothe address listed above.

Dated: May 4, 2001.Steve Caldwell,Acting Director, State, Tribal and SiteIdentification Center, Office of Emergencyand Remedial Response, Office of Solid Wasteand Remedial Response.[FR Doc. 01–11833 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–U


[IL–202; FRL–6976–9]

Adequacy Status of the Metro East St.Louis, IL, Submitted Ozone AttainmentState Implementation Plan forTransportation Conformity Purposes;Notice of Withdrawal of Adequacy

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice of withdrawal ofadequacy.

SUMMARY: EPA has decided to withdrawour finding of adequacy and findinadequate the motor vehicle emissionsbudgets in the Metro East St. Louis,Illinois, ozone attainmentdemonstration State ImplementationPlan (SIP) submitted on November 15,1999, and supplemented on February10, 2000. We are withdrawing ouradequacy finding due to a recent courtdecision. The United States Court ofAppeals for the District of ColumbiaCircuit decided on August 30, 2000, thatthe implementation of the Nitrogen

Oxides ( NOX) SIP Call rule could notbe required before May 31, 2004. Theemission levels in the St. Louisattainment demonstration SIP werebased on the assumption that transportof ozone precursors into St. Louis fromupwind states would be addressed byMay 2003 pursuant to EPA’s NOX SIPCall. Without these regional NOX SIPCall controls in place in 2003, the MetroEast St. Louis area will not be able todemonstrate attainment as described inthe submitted SIP. For this reason, themotor vehicle emissions budgets for2003 can no longer be consideredadequate and are inadequate. The noticeof the adequacy determination that isbeing withdrawn was made on June 12,2000, in a letter to the State and waspublished in the Federal Register onJuly 3, 2000.DATES: The notice of adequacy iswithdrawn as of May 10, 2001.FOR FURTHER INFORMATION CONTACT:Patricia Morris (312–353–8656)SUPPLEMENTARY INFORMATION:

Background

On June 12, 2000, EPA Region 5 senta letter to the Illinois EnvironmentalProtection Agency stating that the motorvehicle emissions budgets for NOX andvolatile organic compounds (VOCs) inthe November 15, 1999, andsupplemented on February 10, 2000,Metro East St. Louis ozone attainmentdemonstration SIP for 2003 wereadequate for the purpose oftransportation conformity. EPApublished a notice in the FederalRegister on July 3, 2000, [65 FR 41068]announcing that we had made anadequacy determination for the motorvehicle emissions budgets in the MetroEast St. Louis attainment demonstrationSIP. This finding was also announcedon EPA’s conformity website, http://www.epa.gov/oms/traq.

Transportation conformity is requiredby section 176(c) of the Clean Air Act.EPA’s conformity rule requires thattransportation plans, programs, andprojects conform to SIPs and establishesthe criteria and procedures fordetermining whether or not they doconform. Conformity to a SIP means thattransportation activities will notproduce new air quality violations,worsen existing violations, or delaytimely attainment of the nationalambient air quality standards.

EPA described the process fordetermining the adequacy of submittedSIP budgets in guidance (May 14, 1999,memo titled ‘‘Conformity Guidance onImplementation of March 2, 1999,Conformity Court Decision’’). Thisguidance was used in making the



adequacy determination on the motorvehicle emissions budgets contained inthe ozone attainment demonstration forSt. Louis. The criteria by which EPAdetermines whether a SIP’s motorvehicle emission budgets are adequatefor conformity purposes are outlined in40 CFR 93.118(e)(4). An adequacyreview is separate from EPA’s SIPcompleteness review, and it also shouldnot be used to prejudge EPA’s ultimateaction to approve or disapprove the SIP.The SIP could later be disapproved forreasons unrelated to transportationconformity even though the budgets hadbeen deemed adequate.

EPA believes that a consequence ofthe D.C. Circuit’s order delaying theimplementation date of the NOX SIPCall rule is that the budgets submittedby Illinois can no longer be consideredadequate for purposes of transportationconformity and that these budgets arenow inadequate. This belief is based onthe fact that the attainmentdemonstration relied on the expectedreductions from the NOX SIP call in2003, whereas those reductions can notnow be assumed prior to 2004.

On November 8, 2000, EPA sent aletter to Illinois advising Illinois of theneed to revise the Metro East St. Louisozone attainment demonstration and tosubmit revised budgets. The revisedbudgets are expected to be based oncontrols that will be in place by the year2004.

Consequently, EPA has decided towithdraw the June 12, 2000, adequacydetermination and is instead findingthat the budgets are inadequate. EPA istaking this action without prior noticeand comment because adequacydeterminations are not consideredrulemaking subject to the proceduralrequirements of the AdministrativeProcedures Act. In addition, EPA doesnot believe further notice through EPA’sconformity website is necessary inadvance because of the delay in the NOX

SIP Call implementation date, it is clearthat the budgets can no longer beconsidered adequate. Consequently,further public comment would beunnecessary and not in the publicinterest. In this action, EPA is alsowithdrawing all statements andcomments previously made in relationto its earlier determination of theadequacy of the budgets fortransportation conformity purposes. Thesubstance of the budgets and anyrevisions to them will be furtherreviewed by EPA as part of its finaldecision to on the 1-hour ozoneattainment demonstration SIP for the St.Louis nonattainment area. This SIP wasinitially submitted to EPA on November

15, 1999 and supplemented on February10, 2000.

EPA will announce the withdrawal ofthe adequacy determination andinadequacy finding on its conformitywebsite, (go to http://www.epa.gov/otaq/traq and then click on ‘‘conformity’’).

Dated: April 30, 2001.Jerri-Anne Garl,Acting Regional Administrator, Region 5.[FR Doc. 01–11836 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–P


[FRL–6976–2]

Meeting of the Local GovernmentAdvisory Committee and the SmallCommunity Advisory Subcommittee

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice.

SUMMARY: The Local GovernmentAdvisory Committee (LGAC) and itsSmall Community AdvisorySubcommittee (SCAS) will meet jointlyon June 7–8, 2001, in Washington, D.C.The Committee will hear remarks fromthe EPA Administrator, GovernorChristine Todd Whitman, and theAssociate Administrator for the Office ofCongressional and IntergovernmentalRelations, Edward D. Krenik, onThursday, June 7th. The LGACSubcommittees will provide updates onactivities since the last Committeemeeting. Other agenda topics willinclude Federalism and EnvironmentalManagement Systems. The Committeealso will discuss proposed operatingprinciples and revisions to its bylawsresulting from the merger of the SCASwith the LGAC.

The Issues Subcommittee will discusswater infrastructure funding, land usecredits under State Implementationplans, and sustainability. The ProcessSubcommittee will discuss the Agency’sdraft Public Involvement Policy andaccountability measures for Federalismimplementation.

The Small Community AdvisorySubcommittee will meet in a separatesession on Wednesday, June 6th from 9a.m.–5 p.m. The Subcommittee willupdate activities since its meeting inSeattle, Washington, on March 1–2,2001. Topics will include SmallCommunity Funding, arecommendation for Small CommunityAdvocate, Federalism, TMDLImplementation, Sustainability, andEnforcement Flexibility.

The SCAS will hear comments fromthe public from 1:30–1:45 p.m. at its

separate meeting June 6th. The LGACand SCAS will hear comments from thepublic between 12:30–12:45 p.m. attheir joint session on June 7. Eachindividual or organization wishing toaddress the combined Committee orSubcommittee meetings will be alloweda minimum of three minutes. Pleasecontact the Designated Federal Officers(DFO) at the numbers listed below toschedule agenda time. Time will beallotted on a first come, first servedbasis.

These are open meetings and allinterested persons are invited to attend.Meeting minutes will be available afterthe meeting and can be obtained bywritten request from the DFO. Membersof the public are requested to call theDFO at the number listed below ifplanning to attend so that arrangementscan be made to comfortablyaccommodate attendees as much aspossible. Seating will be on a first come,first served basis.

DATES: The Small Community AdvisorySubcommittee meeting is scheduledfrom 9:00 a.m. to 5:00 p.m. onWednesday, June 6th. The LocalGovernment Advisory Committee andSmall Community AdvisorySubcommittee joint meeting will beginat 9:00 a.m. on Thursday, June 7th andconclude at 4:00 p.m. on June 8th.

ADDRESSES: The meetings will be heldin Washington, D.C. at the EPA’sHeadquarters, located at 1200Pennsylvania Avenue, NW—the ArielRios North Building. The SCAS meetingon Wednesday will be held inconference room 3530. The joint LGAC/SCAS meeting on Thursday and Fridaywill be held in the Green Room on the3rd floor.

Additional information can beobtained by writing the DFOs at 1200Pennsylvania Avenue, NW (1306A),Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: TheDFO for the Local Government AdvisoryCommittee (LGAC) is Denise ZabinskiNey (202) 564–3684 and the DFO for theSmall Community AdvisorySubcommittee (SCAS) is AnneRandolph (202) 564–3679.

Dated: May 1, 2001.Denise Zabinski Ney,Designated Federal Officer, Local GovernmentAdvisory Committee.

Dated: May 1, 2001.Anne Randolph,Designated Federal Officer, Small CommunityAdvisory Subcommittee.[FR Doc. 01–11832 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–U




[OPPTS–00315; FRL–6780–5]

Forum on State and Tribal ToxicsAction (FOSTTA); Notice of PublicMeeting

AGENCY: Environmental ProtectionAgency (EPA).ACTION: Notice.

SUMMARY: One component (ThePollution Prevention Project) of theForum on State and Tribal ToxicsAction (FOSTTA) will meet May 17–18,2001. This notice announces thelocation, times, and the focus of themeeting. The National Conference ofState Legislatures (NCSL) and theEnvironmental Protection Agency’s(EPA) Office of Pollution Preventionand Toxics (OPPT) are co-sponsoringthe meeting. As part of a cooperativeagreement, NCSL facilitates ongoingefforts of the States and Tribes toidentify, discuss, and address toxics-related issues, and to continue thedialogue on how Federal environmentalprograms can best be implemented.DATES: The Pollution Prevention Projectwill meet May 17, 2001, from 8 a.m. to5 p.m. and May 18, 2001, from 8 a.m.to noon.ADDRESSES: The meeting will be held atthe Embassy Suites Hotel, 1900Diagonal Road, Alexandria, VA, 22314.The hotel is across from the King StreetMetro Station.FOR FURTHER INFORMATION CONTACT: Forgeneral information contact: BarbaraCunningham, Acting Director,Environmental Assistance Division,Office of Pollution Prevention andToxics (7408), Environmental ProtectionAgency, 1200 Pennsylvania Ave., NW.,Washington, DC 20460; telephonenumber: (202) 260–1761.

For technical information contact:George Hagevik, National Conference ofState Legislatures, 1560 Broadway, Suite700, Denver, CO 80202; telephonenumber: (303) 839–0273 and Fax: (303)863–8003; e-mail:[email protected] or

Darlene Harrod, EnvironmentalAssistance Division (7408), OPPT,Environmental Protection Agency, 1200Pennsylvania Ave., NW., Washington,DC 20460; telephone number: (202)260–6904 and Fax: (202) 260–2219; e-mail: [email protected] INFORMATION:

I. Does this Action Apply to Me?

This action is directed to the publicin general. This action may, however, beof interest to all parties interested in

FOSTTA and hearing more about theperspectives of the States on EPAprograms and the information exchangeregarding important issues related tohuman health and environmentalexposure to toxics. Since other entitiesmay also be interested, the Agency hasnot attempted to describe all the specificentities that may be affected by thisaction. However, in the interest of timeand efficiency, the meetings arestructured to provide maximumopportunity for State and EPAparticipants to discuss items on thepredetermined agenda. At the discretionof the chair, an effort will be made toaccommodate participation by observersattending the proceedings. If you haveany questions regarding theapplicability of this action to aparticular entity, consult the technicalpeople listed under FOR FURTHERINFORMATION CONTACT.

II. How Can I Get AdditionalInformation, Including Copies of thisDocument or Other Related Documents?

1. Electronically. You may obtainelectronic copies of this document, andcertain other related documents thatmight be available electronically, fromthe NCSL Web site at http://www.ncsl.org/programs/esnr/fostta/fostta.htm. To access this document onthe EPA Internet Home Page go to http://www.epa.gov and select ‘‘Laws andRegulations’’ and then look up the entryfor this document under the ‘‘FederalRegister—Environmental Documents’’.You can also go directly to the FederalRegister listings at http://www.epa.gov/fedrgstr/FOSTTA.

2. Facsimile. Notify the contacts listedabove if you would like any of thedocuments sent to you via fax.

III. Purpose of Meeting

The focus of the meeting is to discussstrategic directions for pollutionprevention for the Federal EPA programand the State P2 programs.

IV. How Can I Request To Participatein this Meeting?

You may submit a request toparticipate in this meeting by mail orelectronically to the names under theFOR FURTHER INFORMATION CONTACTsection. Do not submit any informationin your request that is consideredConfidential Business Information. Yourrequest must be received by EPA on orbefore May 15, 2001.

List of Subjects

Environmental protection.

Dated: April 18, 2001.Barbara Cunningham,Acting Director, Environmental AssistanceDivision, Office of Pollution Prevention andToxics.

[FR Doc. 01–11838 Filed 5–9–01; 8:45am]BILLING CODE 6560–50–S


[FRL–6976–3]

Proposed Agreement Pursuant toSections 122(g) and (h) of theComprehensive EnvironmentalResponse, Compensation, and LiabilityAct for the Marina Cliffs/NorthwesternBarrel Superfund Site

AGENCY: Environmental ProtectionAgency (‘‘EPA’’).ACTION: Notice; request for publiccomment on proposed de minimissettlement.

SUMMARY: In accordance with section122(i)(1) of the ComprehensiveEnvironmental Response, Compensationand liability Act of 1984, as amended(‘‘CERCLA’’), notification is herebygiven of a proposed administrativeagreement concerning the Marina Cliffs/Northwestern Barrel hazardous wastesite located between 5th Avenue andLake Michigan in South Milwaukee,Wisconsin (the ‘‘Site’’). EPA proposes toenter into this agreement under theauthority of sections 122(g) and (h) and107 of CERCLA. The proposedagreement has been executed by thefollowing de minimis parties: AF Gallun& Sons, LLC; Albert Trostel & SonsCompany; Aldrich Chemical Co. Inc.;Allen-Bradley Co. LLC; Ampco Metals,Inc.; A.O. Smith Corporation; AppletonPapers Inc., a.k.a. Appleton Papers, Inc.,NCR Corporation, Appleton Papers, Inc.division of National Cash RegisterCompany, Appleton Coated Paper Co.;Appleton Coated Paper Company;Appleton Papers Division of NCRCorporation, The National Cash RegisterCompany, NCR Delaware, Inc.,Combined Paper Company, CombinedLocks Paper Company, Combined PaperMills, Inc.; AR Accessories LiquidatingTrust as successor to Amity Leather, AtoFindley, Inc.; Atofina Chemicals Inc.(Elf Atochem North America, Inc.) onbehalf of Beazer East, Inc., on behalf ofits former subsidiary ThiemCorporation; Blackhawk Leather, Ltd.and its successor, Blackhawk LeatherLLC; Briggs & Stratton Corporation;Bucyrus International, Inc. (f/k/aBucyrus-Erie Company); CarbolineumWood Preserving Co.; Case Corporation;Caterpillar Inc.; City of Green Bay,



Wisconsin; City of Manitowoc,Wisconsin; City of Milwaukee,Wisconsin; City of Sheboygan,Wisconsin; City of West Allis,Wisconsin; City of West Bend,Wisconsin; CMC Heartland Partners;Colonial Heights Packaging Inc. f/k/aMilprint, Inc.; Cooper Industries, Inc.;Crucible Materials Corporation by andthrough its Trent Tube Division; CudahyTanning Co.; Deere & Company; DresserIndustries, Inc. (Waukesha Engine); E.I.du Pont de Nemours and Company;Eaton Corporation f/k/a Cutler-Hammer,Inc.); Eggers Industries; EssentialIndustries Inc.; FMC Corporation onbehalf of Bolens Corporation and BolensProducts Divisions; HamiltonSundstrand Corporation and The FalkCorporation; Fort James Corporation,successor to Fort Howard Corporation;Georgia Gulf Corporation, on behalf ofitself, Cook Composites & Polymers, andthe former Freemen Chemical Co.;Golden Books Publishing Company, Inc.(formerly known as Western PublishingCompany, Inc.); Grede Foundries, Inc.;Harley-Daivdson Motor Company;Harnischfeger Corporation; The HeilCo.; Hein-Werner; Henkel Corporation,as successor to Kepec Chemical;Hentzen/Wisconsin Paint; HerculesIncorporated; Heresite ProtectiveCoatings, Inc.; Honeywell InternationalInc.; Hydrite Chemical Co.; HydriteChemical Co. for Benlo Chemical/Hydrite share; Ingersoll-Rand Co. forClark Equipment Co.; InternationalPaper Co. (and Champion International,a wholly owned subsidiary ofInternational Paper); Invincible MetalFurniture Co.; Johnson Controls BatteryGroup, Inc. as successor to and onbehalf of Johnson Controls, Inc.;Kearney & Trecker; KickhaeferManufacturing Company; Kimberly-Clark Corporation and Scott PaperCompany; Ladish Co., Inc.; LawTanning Co. LLC; Litton Industries, Inc.,on behalf of itself and the Louis Alliscompany and MagneTek, Inc.; MaysteelCorporation (and its successor, MaysteelLLC); Midwest Tanning Co.; MillerBrewing Company; Milport ChemicalCompany; Milwaukee County; MRCHolding, Inc. (Northern Paper, MarathonCorp.); Navistar InternationalTransportation Corporation; NekoosaPapers Inc. and Georgia-PacificCorporation; The Nelson Paint Co. ofMI, Inc.; Niles Chemical PaintCompany, Inc.; Nordberg Inc.; PabstBrewing Co.; Pharmacia & UpjohnCompany (formerly The UpjohnCompany); The Procter & Gamble PaperProducts Company; Rapco Leather, Inc.;Reichhold Chemicals, Inc./J.G. Milligan& Company; Research Products

Corporation; RHS Holdings, Inc. assuccessor to Rexnord, Inc./Chainbelt;RHL Inc. fka Lindsay Finishes, Inc.(Lindsay Paint); Roper Corp.; SBCHoldings, Inc. (f/k/a the Stroh BreweryCompany); Seidel Tanning Corp.; TheSherwin-Williams Company; Square DCompany; Soo Line Railroad Company;Stolper Industries (Stolper Steel); StoraEnso North America Corp., successor bymerger to Consolidated Papers, Inc.;Textron Inc.; Thiele Tanning Company;Union Pacific Railroad Company assuccessor to Chicago & North Western;Viad Corp (for Armour and Co.); TheVollrath Co., L.L.C.; Wenthe-DavidsonEngineering Co.; West Bend Company;W.H. Brady Corporation; WisconsinElectric Power Company; and the U.S.Department of the Army.

Under the proposed agreement,certain of the de minimis SettlingParties will pay a total of approximately$468,227.30 which will be placed intoan escrow account to be used forresponse costs incurred and to beincurred at the Site. Other de minimisSettling Parties have already paidapproximately $5.2 million towardcleanup costs at the Site and will beprovided with de minimis protectionswithout making further payments. Agroup of six non-de minimis settlorsunder this agreement will perform theremaining removal actions to beconducted at the Site, and pay EPA’scosts of overseeing these removalactions. EPA incurred response costsoverseeing response activitiesconducted to mitigate an imminent andsubstantial endangerment to humanhealth or the environment present orthreatened by hazardous substancespresent at the Site. The Settling Partieshave spent more than $9.7 million toperform cleanup activities at the Site todate. The non-de minimis settlors underthis proposed agreement are: BASFCorporation, on behalf of itself and itspredecessors in interest, InternationalPrinting Ink, Inmont Corp., and CookPaint & Varnish; DaimlerChrysler Corp.;General Motors Corporation; S.C.Johnson & Son, Inc.; Minnesota Miningand Manufacturing Company; and PPGIndustries, Inc.

For thirty days following the date ofpublication of this notice, the EPA willreceive written comments relating tothis proposed agreement. EPA willconsider all comments received andmay decide not to enter this proposedagreement if comments disclose facts orconsiderations which indicate that theproposed agreement is inappropriate,improper or inadequate.

DATES: Comments on the proposedagreement must be received by EPA onor before June 11, 2001.ADDRESSES: Comments should beaddressed to the Docket Clerk, U.S.Environmental Protection Agency,Region 5, 77 West Jackson Boulevard,Chicago, Illinois, 60604–3590, andshould refer to: In the Matter of MarinaCliffs/Northwestsern Barrel, SouthMilwaukee, Wisconsin, U.S. EPADocket No. V–W–01C–630.FOR FURTHER INFORMATION CONTACT:Thomas J. Krueger, U.S. EnvironmentalProtection Agency, Office of RegionalCounsel, C–14J, 77 West JacksonBoulevard, Chicago, Illinois, 60604–3590, (312) 886–0562.

A copy of the proposed administrativesettlement agreement may be obtainedin person or by mail from the EPA’sRegion 5 Office of Regional Counsel, 77West Jackson Boulevard, Chicago,Illinois, 60604–3590. Additionalbackground information relating to thesettlement is available for review at theEPA’s Region 5 Office of RegionalCounsel.

Authority: The ComprehensiveEnvironmental Response, Compensation, andLiability Act, as amended, 42 U.S.C. 9601–9675.

William E. Muno,Director, Superfund Division, Region 5.[FR Doc. 01–11831 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–M


[FRL–6975–8]

Petroleum Products Superfund SiteNotice of Proposed De MinimisSettlement

AGENCY: Environmental ProtectionAgency.ACTION: Notice of proposed de minimissettlement.

SUMMARY: Under Section 122(g)(4) of theComprehensive EnvironmentalResponse, Compensation and LiabilityAct (CERCLA), the EnvironmentalProtection Agency (EPA) has offered ade minimis settlement at the PetroleumProducts Superfund Site (Site) under anAdministrative Order on Consent (AOC)to settle claims for past and futureresponse costs at the Site.Approximately 77 parties have returnedsignature pages accepting EPA’ssettlement offer. EPA will considerpublic comments on the proposedsettlement for thirty days. EPA maywithdraw from or modify the proposedsettlement should such comments



* Session Closed—Exempt pursuant to 5 U.S.C.552b(c)(8) and (9).

disclose facts or considerations whichindicate the proposed settlement isinappropriate, improper, or inadequate.

Copies of the proposed settlement areavailable from: Ms. Paula V. Batchelor,U.S. Environmental Protection Agency,Region IV, CERCLA Program ServicesBranch, Waste Management Division, 61Forsyth Street, S.W., Atlanta, Georgia30303, (404) 562–8887.

Written comment may be submitted toMr. Greg Armstrong at the aboveaddress within 30 days of the date ofpublication.

Dated: May 1, 2001.James T. Miller,Acting Chief, CERCLA Program ServicesBranch, Waste Management Division.[FR Doc. 01–11834 Filed 5–9–01; 8:45 am]BILLING CODE 6560–50–U

OFFICE OF NATIONAL DRUGCONTROL POLICY

Paperwork Reduction Act; Notice ofProposed Information Collection;Comment Request

AGENCY: Office of National Drug ControlPolicy (ONDCP).ACTION: Notice.

SUMMARY: The ONDCP proposes tocollect information to test theawareness, attitudes and willingness ofadults 18 years and older to participatein community anti-drug coalitions, andseeks public comment on the proposedcollection methods.ADDRESSES: Written comments shouldbe received within sixty days of thisnotice addressed to Terry Zobeck, Chiefof the Programs and Research Branch,Executive Office of the President, Officeof National Drug Control Policy,Washington, DC 20503.FOR FURTHER INFORMATION CONTACT:Terry Zobeck, (202) 395–5503.SUPPLEMENTARY INFORMATION:

I. Background

The National Youth Anti-Drug MediaCampaign is a component within theONDCP that is partnering with theAdvertising Council to create a publicservice campaign that will generateawareness and involvement in localcommunity anti-drug coalitions thatmobilize communities to engage in drugprevention measures. To assist thedevelopment of the public servicecampaign, ONDCP proposes to obtaininformation to sample the awareness,attitudes and willingness of adults 18years of age and older in order toparticipate in community anti-drugcoalitions. The information will be used

to establish a baseline for measuringchanges in attitudes and awareness as aresult of the public service campaign,and provide data for formative andqualitative evaluation activities. It willassess the public’s exposure to andrecall of advertising (within a donatedmedia model), and measure change inattitudes about drug prevention andcommunity anti-drug coalitions.

II. Special Issues for Comment

The agency has particular interest incomments on the following issues:

Whether the proposed collection ofinformation is necessary for the properperformance of the functions of theagency, including whether theinformation will have practical utility;the accuracy of the agency’s estimate ofthe burden of the proposed collection ofinformation; methods to enhancequality, utility and clarity of theinformation to be collected; and meansto minimize the burden of the collectionof information on respondents,including the use of automatedcollection techniques.

III. Authority and Signature

Alan Levitt, Director for the NationalYouth Anti-Drug Media Campaign,directed the preparation of this notice.The authority for this notice is thePaperwork Reduction Act of 1995 (44U.S.C. 3506).

Signed at Washington, DC on April 30,2001.Alan Levitt,Director, National Youth Anti-Drug MediaCampaign.[FR Doc. 01–11793 Filed 5–9–01; 8:45 am]BILLING CODE 3180–02–P

FARM CREDIT ADMINISTRATION

Sunshine Act Meeting

AGENCY: Farm Credit Administration.SUMMARY: Notice is hereby given,pursuant to the Government in theSunshine Act (5 U.S.C. 552b(e)(3)), ofthe forthcoming regular meeting of theFarm Credit Administration Board(Board).

DATE AND TIME: The regular meeting ofthe Board will be held at the offices ofthe Farm Credit Administration inMcLean, Virginia, on May 10, 2001,from 9 a.m. until such time as the Boardconcludes its business.FOR FURTHER INFORMATION CONTACT:Kelly Mikel Williams, Secretary to theFarm Credit Administration Board,(703) 883–4025, TDD (703) 883–4444.

ADDRESSES: Farm CreditAdministration, 1501 Farm Credit Drive,McLean, Virginia 22102–5090.SUPPLEMENTARY INFORMATION: Parts ofthis meeting of the Board will be opento the public (limited space available),and parts of this meeting will be closedto the public. In order to increase theaccessibility to Board meetings, personsrequiring assistance should makearrangements in advance. The matters tobe considered at the meeting are:

Open Session1. Approval of Minutes

—April 12, 2001 (Open)2. Report

—Report on Corporate Approvals3. Regulation

—Eligibility—Direct Final Rule*Closed Session

4. Reports—OSMO Report—Audit of the FCS Building Association

Dated: May 7, 2001.Kelly Mikel Williams,Secretary, Farm Credit Administration Board.[FR Doc. 01–11851 Filed 5–7–01; 4:21 pm]BILLING CODE 6705–01–P


Notice of Public InformationCollection(s) Being Reviewed by theFederal Communications Commission,Comments Requested

May 1, 2001.SUMMARY: The Federal CommunicationsCommission, as part of its continuingeffort to reduce paperwork burdeninvites the general public and otherFederal agencies to take thisopportunity to comment on thefollowing information collection, asrequired by the Paperwork ReductionAct of 1995, Public Law 104–13. Anagency may not conduct or sponsor acollection of information unless itdisplays a currently valid controlnumber. No person shall be subject toany penalty for failing to comply witha collection of information subject to thePaperwork Reduction Act (PRA) thatdoes not display a valid control number.Comments are requested concerning (a)whether the proposed collection ofinformation is necessary for the properperformance of the functions of theCommission, including whether theinformation shall have practical utility;(b) the accuracy of the Commission’sburden estimate; (c) ways to enhance



the quality, utility, and clarity of theinformation collected; and (d) ways tominimize the burden of the collection ofinformation on the respondents,including the use of automatedcollection techniques or other forms ofinformation technology.DATES: Written comments should besubmitted on or before July 9, 2001. Ifyou anticipate that you will besubmitting comments, but find itdifficult to do so within the period oftime allowed by this notice, you shouldadvise the contact listed below as soonas possible.ADDRESSES: Direct all comments to LesSmith, Federal CommunicationsCommissions, 445 12th Street, SW.,Room 1–A804, Washington, DC 20554or via the Internet to [email protected] FURTHER INFORMATION CONTACT: Foradditional information or copies of theinformation collections contact LesSmith at (202) 418–0217 or via theInternet at [email protected] INFORMATION:

OMB Control No.: 3060–0824.Title: Service Provider Information

Form.Form No.: N/A.Type of Review: Extension.Respondents: Business or Other for

Profit.Number of Respondents: 10,000.Estimated Time Per Response: 1 hour

per response (avg).Total Annual Burden: 10,000 hours.Estimated Annual Reporting and

Recordkeeping Cost Burden: $0.Frequency of Response: On occasion.Needs and Uses: Pursuant to 47 CFR

sections 54.515 and 54.611, theAdministrator must obtain informationrelating to: service provider name andaddress, telephone number, Federalemployee identification number, contactnames and telephone numbers, andbilling and collection information. FCCForm 498 has been designed to collectthis information from carriers andservice providers participating in theuniversal service program. Theinformation will be used in thereimbursement of universal servicesupport payments.

OMB Control No.: 3060–0804.Title: Universal Service—Health Care

Providers Universal Service Program.Form No.: FCC Forms 465, 466, 466-

A, 467 and 468.Type of Review: Extension.Respondents: Not for profit

institutions; Business or Other for Profit.Number of Respondents: 5255.Estimated Time Per Response: 1.85

hours per response (avg).Total Annual Burden: 9755 hours.Estimated Annual Reporting and

Recordkeeping Cost Burden: $0.

Frequency of Response: On occasion;.Needs and Uses: The Commission

adopted rules providing support for alltelecommunications services, Internetaccess, and internal connections for alleligible health care providers. Healthcare providers who want to participatein the universal service program mustfile several forms, including FCC Forms465, 466, 466-A, 467, and 468. FCCForm 465, Description of ServiceRequested and Certification is filed byrural health care providers to certifytheir eligibility to receive discountedtelecommunications services. FCC Form466, Funding Request and CertificationForm is used to ensure that health careproviders have selected the most cost-effective method of providing therequested services. FCC Form 466-A isfiled by rural health care providersseeking support only for toll changes toaccess the Internet. FCC Form 467,Connection Certification is filed by ruralhealth care providers to inform theAdministrator that they have begun toreceive, or have stopped receiving, thetelecommunications services for whichuniversal service support has beenallocated. FCC Form 468,Telecommunications Carrier Form, issubmitted by rural health care providersto ensure that the telecommunicationscarrier receives the appropriate amountof credit for providingtelecommunications services to eligiblehealth care providers.

OMB Control No.: 3060–0855.Title: Telecommunications Reporting

Worksheet and AssociatedRequirements, CC Docket No. 96–45.

Form No.: FCC Forms 499, 499–A and499–Q.

Type of Review: Extension.Respondents: Business or Other for

Profit.Number of Respondents: 5000.Estimated Time Per Response: 16.49

hours per response (avg).Total Annual Burden: 82,487 hours.Estimated Annual Reporting and

Recordkeeping Cost Burden: $0.Frequency of Response: On occasion;

Monthly; Annually; Third PartyDisclosure; Recordkeeping.

Needs and Uses: Pursuant to theCommunications Act of 1934, asamended, telecommunications carriers(and certain other providers oftelecommunications services) mustcontribute to the support and costrecovery mechanisms fortelecommunications relay services,numbering administration, numberportability, and universal service. TheCommission recently modified theexisting methodology used to assesscontributions that carriers make to the

federal universal service supportmechanisms. The modifications adoptedentail altering the current revenuereporting requirements to whichinterstate telecommunications carriersare subject under 47 U.S.C. Sections54.709 and 54.711. Carriers continue tofile FCC Form 499–A annually as theyare required to do under the existingmethodology. Carriers must now reporttheir revenues for each quarter on FCCForm 499–Q. Carriers will file oneannual filing and four quarterly filings,for a total of five revenue filings peryear.Federal Communications Commission.Magalie Roman Salas,Secretary.[FR Doc. 01–11765 Filed 5–9–01; 8:45 am]BILLING CODE 6712–01–P


Notice of Public InformationCollection(s) Being Reviewed by theFederal Communications Commissionfor Extension Under DelegatedAuthority, Comments Requested

May 1, 2001.SUMMARY: The Federal CommunicationsCommission, as part of its continuingeffort to reduce paperwork burdeninvites the general public and otherFederal agencies to take thisopportunity to comment on thefollowing information collection(s), asrequired by the Paperwork ReductionAct of 1995, Public Law 104–13. Anagency may not conduct or sponsor acollection of information unless itdisplays a currently valid controlnumber. No person shall be subject toany penalty for failing to comply witha collection of information subject to thePaperwork Reduction Act (PRA) thatdoes not display a valid control number.Comments are requested concerning (a)whether the proposed collection ofinformation is necessary for the properperformance of the functions of theCommission, including whether theinformation shall have practical utility;(b) the accuracy of the Commission’sburden estimate; (c) ways to enhancethe quality, utility, and clarity of theinformation collected; and (d) ways tominimize the burden of the collection ofinformation on the respondents,including the use of automatedcollection techniques or other forms ofinformation technology.DATES: Written comments should besubmitted on or before July 9, 2001. Ifyou anticipate that you will besubmitting comments, but find it



difficult to do so within the period oftime allowed by this notice, you shouldadvise the contact listed below as soonas possible.ADDRESS: Direct all comments to LesSmith, Federal CommunicationsCommissions, Room 1A–804, 445Twelfth Street, SW., Washington, DC20554 or via the Internet [email protected].

FOR FURTHER INFORMATION CONTACT: Foradditional information or copies of theinformation collections contact LesSmith at (202) 418–0217 or via theInternet at [email protected] INFORMATION:

OMB Control No.: 3060–0166.Title: Part 42—Preservation of

Records of Communication CommonCarriers.

Form No.: N/A.Type of Review: Extension.Respondents: Business or Other for

Profit.Number of Respondents: 68.Estimated Time Per Response: 2 hours

per response (avg).Total Annual Burden: 136 hours.Estimated Annual Reporting and


Recordkeeping.Needs and Uses: Section 220 of the

Communications Act of 1934, asamended, makes it unlawful for carriersto willfully destroy information retainedfor the Commission. 47 U.S.C. part 42prescribes guidelines to ensure thatcarriers maintain the necessary recordsneeded by the FCC for its regulatoryobligations. The requirements arenecessary to ensure the availability ofcarrier records needed by Commissionstaff for regulatory purposes.

OMB Control No.: 3060–0149.Title: Application and Supplemental

Information Requirements—Part 63,Section 214, and Sections 63.01–63.601.


Profit.Number of Respondents: 255.Estimated Time Per Response: 10



Third Party Disclosure.Needs and Uses: Section 214 of the

Communications Act of 1934, asamended, requires that the FCC reviewthe establishment, lease, operations, andextension of channels ofcommunications by interstate commoncarriers. 47 CFR part 63 implementssection 214. Part 63 also implements

provisions of the Cable CommunicationsPolicy Act of 1984 pertaining to videoprogramming by telephone commoncarriers. The information received inapplications from dominant carriers isused to determine if the facilities areneeded. The information received fromnon-dominant carriers is used tomonitor the growth of the networks andthe availability of common carrierservices.

OMB Control No.: 3060–0814.Title: Section 54.301, Local Switching

Support and Local Switching SupportData Collection Form and Instructions.





Annually.Needs and Uses: Pursuant to 47 CFR

Section 54.301, each incumbent localexchange carrier that is not a member ofthe NECA common line tariff, that hasbeen designated an eligibletelecommunications carriers, and thatserves a study area with 50,000 or feweraccess lines shall, for each study area,provide the Administrator with theprojected total unseparated dollaramount assigned to each account insection 54.301(b). Average schedulecompanies are required to fileinformation pursuant to 47 CFR Section54.301(f). Both respondents mustprovide true-up data. The data isnecessary to calculate certain revenuerequirement.

OMB Control No.: 3060–0736.Title: Implementation of the Non-

Accounting Safeguards of Section 271and 272 of the Communications Act of1934, as amended, CC Docket No. 96–149.





Monthly; Annually; Third PartyDisclosure.

Needs and Uses: Section 272 of theTelecommunications Act of 1996requires that Bell Operating Companies(BOCs) make information available to

third parties if it makes that informationavailable to its section 272(a) affiliates.In CC Docket No. 96–149, theCommission adopted safeguards togovern BOCs entry into certain newmarkets. BOCs are required to provide,among other things, unaffiliated entitieswith all listing information, includingunlisted and unpublished numbers aswell as the numbers of other localexchange carriers’ customers, that theBOC uses to provide E9II services. In aFurther Notice of Proposed Rulemakingissued in CC Docket No. 96–149, theCommission proposed that BOCs makecertain information disclosuresavailable to unaffiliated entities and thatthe BOCs submit an annual affidavit.Federal Communications Commission.Magalie Roman Salas,Secretary.[FR Doc. 01–11766 Filed 5–9–01; 8:45 am]BILLING CODE 6712–01–P


Public Information CollectionsApproved by Office of Managementand Budget

May 1, 2001.The Federal Communications

Commission (FCC) has received Officeof Management and Budget (OMB)approval for the following publicinformation collections pursuant to thePaperwork Reduction Act of 1995,Public Law 104–13. An agency may notconduct or sponsor and a person is notrequired to respond to a collection ofinformation unless it displays acurrently valid control number. Forfurther information contact Shoko B.Hair, Federal CommunicationsCommission, (202) 418–1379.

Federal Communications Commission

OMB Control No.: 3060–0807.Expiration Date: April 30, 2004.Title: 47 CFR 51.803 and

Supplemental Procedures for Petitionsto Section 252(e)(5) of theCommunications Act of 1934, asamended.

Form No.: N/A.Respondents: Business or other for-

profit.Estimated Annual Burden: 52

respondents; 39.2 hours per response(avg.); 2040 total annual burden hours(for all collections approved under thiscontrol number).

Estimated Annual Reporting andRecordkeeping Cost Burden: $0.

Frequency of Response: On occasion;Third Party Disclosure.



Description: Pursuant to 47 U.S.C.section 252 and 47 CFR 51.803 anyinterested party seeking preemption of astate commission’s jurisdiction based onthe state commission’s failure to actshall notify the Commission as follows:(1) file with the Secretary of theCommission a detailed petition,supported by an affidavit, that stateswith specificity the basis for any claimthat it has failed to act; and (2) serve thestate commission and other parties tothe proceeding on the same day that theparty serves the petition on theCommission. Within 15 days of thefiling of the petition, the statecommission and parties to theproceeding may file a response to thepetition. In a Public Notice (DA 97–2256), the Commission set outprocedures for filing petitions forpreemption pursuant to 47 U.S.C.section 252(e)(5). All of therequirements are used to ensure thatpetitions have complied with theirobligations under the CommunicationsAct of 1934, as amended. Obligation torespond: Required to obtain or retainbenefits. Public reporting burden for thecollection of information is as notedabove. Send comments regarding theburden estimate or any other aspect ofthe collections of information, includingsuggestions for reducing the burden toPerformance Evaluation and RecordsManagement, Washington, DC 20554.Federal Communications Commission.Magalie Roman Salas,Secretary.[FR Doc. 01–11764 Filed 5–9–01; 8:45 am]BILLING CODE 6712–01–P


[Report No. 2481]

Petitions for Reconsideration andClarification of Action in RulemakingProceedings

May 3, 2001.Petitions for Reconsideration and

Clarification have been filed in theCommission’s rulemaking proceedingslisted in this Public Notice andpublished pursuant to 47 CFR section1.429(e). The full text of thesedocuments are available for viewing andcopying in Room CY–A257, 445 12thStreet, S.W., Washington, D.C. or maybe purchased from the Commission’scopy contractor, ITS, Inc. (202) 857–3800. Oppositions to these petitionsmust be filed by May 25, 2001. Seesection 1.4(b)(1) of the Commission’srules (r7 CFR 1.4(b)(1)). Replies to anopposition must be filed within10 days

after the time for filing oppositions haveexpired.

Subject: Federal-State Joint Board onUniversal Service (CC Docket No. 96–45).

Number of Petitions Filed: 1.Subject:

Carriage of Digital Television BroadcastStations (CS Docket No. 98–120)Amendments to Part 76 of theCommission’s Rules

Implementation of the Satellite HomeViewer Improvement Act of 1999:Local Broadcast Signal Carriage Issues(CS Docket No. 00–96)

Application of Network Non-Duplication, Syndicated Exclusivelyand Sports Blackout Rules to SatelliteRetransmission of Broadcast Signals(CS Docket No. 00–2)

Number of Petitions Filed: 10.Federal Communications Commission.Magalie Roman Salas,Secretary.[FR Doc. 01–11844 Filed 5–9–01; 8:45 am]BILLING CODE 6712–01–M

FEDERAL ELECTION COMMISSION

Sunshine Act Meeting

AGENCY: Federal Election Commission.

DATE & TIME: Tuesday, May 15, 2001 at10:00 a.m.

PLACE: 999 Street, NW., Washington,DC.

STATUS: This meeting will be closed tothe public.

ITEMS TO BE DISCUSSED: Compliance matters pursuant to 2

U.S.C. § 437gAudits conducted pursuant to 2 U.S.C.

§ 437g, § 438(b), and Title 26, U.S.C.Matters concerning participation in civil

actions or proceedings or arbitrationInternal personnel rules and procedures

or matters affecting a particularemployee

* * * * *

DATE & TIME: Thursday, May 17, 2001 at10:00 a.m.

PLACE: 999 E Street, N.W., Washington,DC. (Ninth Floor)

STATUS: This meeting will be open to thepublic.

ITEMS TO BE DISCUSSED: Correction and Approval of MinutesFinal Audit Report on the California

State Republican PartyAdministration Matters

PERSON TO CONTACT FOR INFORMATION:Mr. Ron Harris, Press Officer,Telephone: (202) 694–1220.

Mary W. Dove,Secretary of the Commission.[FR Doc. 01–11878 Filed 5–8–01; 11:01 am]BILLING CODE 6715–01–M

FEDERAL RESERVE SYSTEM

Agency Information CollectionActivities: Proposed Collection;Comment Request

AGENCY: Board of Governors of theFederal Reserve System, FederalReserve System.

BackgroundOn June 15, 1984, the Office of

Management and Budget (OMB)delegated to the Board of Governors ofthe Federal Reserve System (Board) itsapproval authority under the PaperworkReduction Act, as per 5 CFR 1320.16, toapprove of and assign OMB controlnumbers to collection of informationrequests and requirements conducted orsponsored by the Board underconditions set forth in 5 CFR 1320Appendix A.1. Board-approvedcollections of information areincorporated into the official OMBinventory of currently approvedcollections of information. Copies of theOMB 83–Is and supporting statementsand approved collection of informationinstruments are placed into OMB’spublic docket files. The Federal Reservemay not conduct or sponsor, and therespondent is not required to respondto, an information collection that hasbeen extended, revised, or implementedon or after October 1, 1995, unless itdisplays a currently valid OMB controlnumber.

Request for Comment on InformationCollection Proposal

The following information collection,which is being handled under thisdelegated authority, has received initialBoard approval and is hereby publishedfor comment. At the end of the commentperiod, the proposed informationcollection, along with an analysis ofcomments and recommendationsreceived, will be submitted to the Boardfor final approval under OMB delegatedauthority. Comments are invited on thefollowing:

a. whether the proposed collection ofinformation is necessary for the properperformance of the Federal Reserve’sfunctions; including whether theinformation has practical utility;

b. the accuracy of the FederalReserve’s estimate of the burden of the



proposed information collection,including the validity of themethodology and assumptions used;

c. ways to enhance the quality, utility,and clarity of the information to becollected; and

d. ways to minimize the burden ofinformation collection on respondents,including through the use of automatedcollection techniques or other forms ofinformation technology.

DATES: Comments must be submitted onor before July 9, 2001.

ADDRESSES: Comments, which shouldrefer to the OMB control number oragency form number, should beaddressed to Jennifer J. Johnson,Secretary, Board of Governors of theFederal Reserve System, 20th and CStreets, NW., Washington, DC 20551, ormailed electronically [email protected] addressed to Ms. Johnsonmay be delivered to the Board’smailroom between 8:45 a.m. and 5:15p.m., and to the security control roomoutside of those hours. Both themailroom and the security control roomare accessible from the courtyardentrance on 20th Street betweenConstitution Avenue and C Street, N.W.Comments received may be inspected inroom M–P–500 between 9 a.m. and 5p.m., except as provided in section261.14 of the Board’s Rules RegardingAvailability of Information, 12 CFR261.14(a).

A copy of the comments may also besubmitted to the OMB desk officer forthe Board: Alexander T. Hunt, Office ofInformation and Regulatory Affairs,Office of Management and Budget, NewExecutive Office Building, Room 3208,Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Acopy of the proposed form andinstructions, the Paperwork ReductionAct Submission (OMB 83–I), supportingstatement, and other documents thatwill be placed into OMB’s public docketfiles once approved may be requestedfrom the agency clearance officer, whosename appears below.

Mary M. West, Federal Reserve BoardClearance Officer (202–452–3829),Division of Research and Statistics,Board of Governors of the FederalReserve System, Washington, DC 20551.Telecommunications Device for the Deaf(TDD) users may contact CapriaMitchell (202) 872–4984, Board ofGovernors of the Federal ReserveSystem, Washington, DC 20551.

Proposal To Approve Under OMBDelegated Authority theImplementation of the FollowingReport

Report title: the Consolidated BankHolding Company Report of EquityInvestments in NonfinancialCompanies.

Agency form number: FR Y–12.Frequency: Quarterly and semi-

annually.Reporters: Bank holding companies.Annual reporting hours: 14,112 hours.Estimated average hours per response:

16 hours.Number of respondents: 232.Small businesses are affected.General description of report: This

information collection is mandatory (12U.S.C. 1844(c)) and data may be exemptfrom disclosure pursuant to sections(b)(4) and (b)(8) of the Freedom ofInformation Act (5 U.S.C. 552(b)(4) and(8)).

Current Actions: The Federal Reserveproposes to implement the mandatoryFR Y–12. The FR Y–12 would collectinformation from certain domestic bankholding companies on their investmentsin nonfinancial companies on threeschedules: Type of Investments, Type ofSecurity, and Type of Entity within theBanking Organization. Large bankholding companies would report on aquarterly basis, and small bank holdingcompanies would report semi-annually.

BHC investments in nonfinancialcompanies have increased significantlyover the past several years. Theseinvestments have contributedsignificantly to earnings and capital atinstitutions actively involved in thisbusiness line. Equity investments alsohave contributed to the volatility ofearnings and capital in recent periodsand have increased some institutions’risk profiles. The GLB Act permitsfinancial holding companies to makeinvestments in any amount in any typeof nonfinancial company as part of asecurities underwriting or merchant orinvestment banking activity. Theinvestments permissible under the GLBAct’s merchant banking authority aresubstantially broader in scope than theinvestment activities otherwisepermissible for BHCs. Thus, theseinvestments present the potential foradditional volatility and risk in bankingorganizations’ portfolios.

The FR Y–12 would provide valuablesupervisory information that wouldpermit examiners and other supervisorystaff to monitor the on-going growth andcontribution to profitability of thisincreasingly active business line. Forinstitutions active in this business line,annual reviews generally are conducted.

The FR Y–12 would serve as animportant risk-monitoring device forinstitutions active in this business lineby allowing supervisory staff to monitoran institution’s activity between reviewdates. It also could serve as an ‘‘earlywarning’’ mechanism to identifyinstitutions whose activities in this areaare growing rapidly and that, therefore,may warrant special supervisoryattention.

On January 31, 2001, the Board andthe Treasury Department published afinal rule in the Federal Register onmerchant banking investments made byfinancial holding companies (66 FR8466). In Section 225.175 of this finalrule, the two agencies stated thatreporting forms to fulfill the quarterlyand annual reporting requirementsassociated with this rule would bepublished separately. Institutions willnot be held responsible for thesereporting requirements until thereporting forms are finalized. Thisproposal covers the quarterly reportingrequirements; the reporting forms forthe annual reporting requirements willbe addressed in a separate proposal laterthis year. The annual report wouldobtain information on merchant bankinginvestments that have been held for anextended period of time.

The Federal Reserve would also liketo solicit public comment on the burdenof collecting a memorandum item onconsolidated recognized gains or losseson equity investments in nonfinancialcompanies. This item is beingconsidered for purposes of determiningwhat portion of a BHC’s consolidatednet income is derived from equityinvestment activities.

Board of Governors of the Federal ReserveSystem, May 4, 2001.Jennifer J. Johnson,Secretary of the Board.[FR Doc. 01–11749 Filed 5–9–01; 8:45 am]BILLING CODE 6210–01–P



Agency Information CollectionActivities; Proposed Collections;Comment Request

The Department of Health and HumanServices, Office of the Secretary willperiodically publish summaries ofproposed information collectionsprojects and solicit public comments incompliance with the requirements ofSection 3506(c)(2)(A) of the PaperworkReduction Act of 1995. To request moreinformation on the project or to obtain



a copy of the information collectionplans and instruments, call the OSReports Clearance Officer on (202) 690–6207.

Comments are invited on: (a) Whetherthe proposed collection of informationis necessary for the proper performanceof the functions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimate of the burden of theproposed collection of information; (c)ways to enhance the quality, utility and

clarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon respondents, including through theuse of automated collection techniquesor other forms of informationtechnology.

Proposed Projects 1. National Study ofChild Protective Services Systems andReform Efforts—NEW—The Office ofthe Assistant Secretary for Planning andEvaluation is proposing to conduct astudy which will document the evolving

practices underway in the field of ChildProtective Services (CPS). Specifically,State officials will be interviewed toobtain an updated picture of currentpolicy; local CPS agencies serving astratified random sample of 150counties will be surveyed and; on-sitevisits will be conducted at 9–12 localCPS agencies that are implementinginnovative practices in their delivery ofservices. For burden estimates see table.

Instrument Number ofrespondents Responses Hours per

response Total hours

State—CPS Directors ...................................................................................... 51 1 2 102State—Hotline .................................................................................................. 25 1 1 25Local Survey—Administration .......................................................................... 150 1 .5 75Local Survey—Intake ....................................................................................... 150 1 1 150Local Survey—Investigation ............................................................................ 225 1 1 225Local Survey—Other CPS Resp ..................................................................... 100 1 1 100Local Survey—New Directions ........................................................................ 150 1 1 150Local Survey—Additional ................................................................................. 40 1 1 40Site Visit—Director Interview ........................................................................... 12 1 1 12Site Visit—Reform Managers .......................................................................... 16 1 2 32Site Visit—Worker Focus Group ...................................................................... 60 1 2 120Site Visit—External Managers ......................................................................... 40 1 2 80Site Visit—Manager Focus Group ................................................................... 96 1 2 192

Total .......................................................................................................... 1,115 ........................ ........................ 1,303

Send comments to Cynthia AgensBauer, OS Reports Clearance Officer,Room 503H, Humphrey Building, 200Independence Avenue SW.,Washington, DC 20201. Writtencomments should be received within 60days of this notice.

Dated: May 3, 2001.Kerry Weems,Acting Deputy Assistant Secretary, Budget.[FR Doc. 01–11731 Filed 5–9–01; 8:45 am]BILLING CODE 4154–05–M


Agency For Healthcare Research andQuality

Contract Review Meeting

In accordance with section 10(a) ofthe Federal Advisory Committee Act asamended (5 U.S.C., Appendix 2),announcement is made of an Agency forHealthcare Research and Quality(AHRQ) Technical Review Committee(TRC) meeting. This TRC’s charge is toprovide review of contract proposalsand recommendations to the Director,AHRQ, with respect to the technicalmerit of proposals submitted inresponse to a Request for Proposals(RFPs) regarding ‘‘Developing Tools toEnhance Quality and Patient Safety

Through Medical Informatics’’, issuedon January 31, 2001. The contract willconstitute AHRQ’s participation in theSmall Business Innovation Researchprogram.

The upcoming TRC meeting will beclosed to the public in accordance withthe Federal Advisory Committee Act(FACA), section 10(d) of 5 U.S.C.,Appendix 2, implementing regulations,and procurement regulations, 41 CFR101–6.1023 and 48 CFR section315.604(d). This discussions at thismeeting of contract proposals submittedin response to the above-referenced RFPare likely to reveal proprietaryinformation and personal informationconcerning individuals associated withthe proposals. Such information isexempt from disclosure under theabove-cited FACA provision thatprotects the free exchange of candidviews, and under the procurement rulesthat prevent undue interference withCommittee and Department operations.

Name of TRC: The Agency forHealthcare Research and Quality—‘‘Developing Tools to Enhance Qualityand Patient Safety Through MedicalInformatics’’.

Date: May 21 & 22, 2001 (Closed tothe public).

Place: Sheraton Four Points Hotel,8400 Wisconsin Avenue, Ambassador IRoom, Bethesda, MD 20814.

Contact Person: Anyone wishing toobtain information regarding thismeeting should contact Eduardo Ortiz,Center for Primary Care Research,Agency for Healthcare Research andQuality, 6010 Executive Blvd., Suite201, Rockville, Maryland 20852, 301–594–6236.

Dated: May 1, 2001.John M. Eisenberg,Director.[FR Doc. 01–11741 Filed 5–9–01; 8:45 am]BILLING CODE 4160–90–M


Centers for Disease Control andPrevention

[60Day–01–37]

Proposed Data Collections Submittedfor Public Comment andRecommendations

In compliance with the requirementof Section 3506(c)(2)(A) of thePaperwork Reduction Act of 1995 foropportunity for public comment onproposed data collection projects, theCenters for Disease Control andPrevention (CDC) will publish periodicsummaries of proposed projects. Torequest more information on theproposed projects or to obtain a copy of



the data collection plans andinstruments, call the CDC ReportsClearance Officer on (404) 639–7090.

Comments are invited on: (a) Whetherthe proposed collection of informationis necessary for the proper performanceof the functions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimate of the burden of theproposed collection of information; (c)ways to enhance the quality, utility, andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon respondents, including through theuse of automated collection techniquesor other forms of informationtechnology. Send comments to AnneO’Connor, CDC Assistant ReportsClearance Officer, 1600 Clifton Road,MS–D24, Atlanta, GA 30333. Writtencomments should be received within 60days of this notice.

Proposed ProjectThe National Health and Nutrition

Examination Survey (NHANES)—Revision—OMB No. 0920–0237National Center for Health Statistics(NCHS), Centers for Disease Control andPrevention (CDC). The National Healthand Nutrition Examination Survey(NHANES) has been conducted

periodically since 1970 by the NationalCenter for Health Statistics, CDC. Thecurrent cycle of NHANES began inFebruary 1999 and will now beconducted on a continuous, rather thanperiodic, basis. About 5,000 personswill be examined annually. They willreceive an interview and a physicalexamination. Participation in the surveyis completely voluntary andconfidential.

NHANES programs producedescriptive statistics which measure thehealth and nutrition status of thegeneral population. Through the use ofquestionnaires, physical examinations,and laboratory tests, NHANES studiesthe relationship between diet, nutritionand health in a representative sample ofthe United States. NHANES monitorsthe prevalence of chronic conditionsand risk factors related to health such ascoronary heart disease, arthritis,osteoporosis, pulmonary and infectiousdiseases, diabetes, high blood pressure,high cholesterol, obesity, smoking, drugand alcohol use, environmentalexposures, and diet. NHANES data areused to establish the norms for thegeneral population against which healthcare providers can compare such patientcharacteristics as height, weight, andnutrient levels in the blood. Data from

NHANES can be compared to thosefrom previous surveys to monitorchanges in the health of the U.S.population. NHANES will also establisha national probability sample of geneticmaterial for future genetic research forsusceptibility to disease.

Users of NHANES data includeCongress; the World HealthOrganization; Federal agencies such asNIH, EPA, and USDA; private groupssuch as the American Heart Association;schools of public health; privatebusinesses; individual practitioners; andadministrators. NHANES data are usedto establish, monitor, and evaluaterecommended dietary allowances, foodfortification policies, programs to limitenvironmental exposures, immunizationguidelines and health education anddisease prevention programs. Thecurrent submission requests approvalthrough November 2004.

The survey description, contents, anduses are the same as those in theprevious Federal Register notice for thissurvey which was published on March27, 2000 (Volume 65, Number 59).There is no net cost to respondentsother than their time. Respondents arereimbursed for any out-of-pocket costssuch as transportation to and from theexamination center.

Burden categoryNumber of

respondentsper year

Number ofresponses/respondent

Avg. burdenper response

(in hours)

Total burden(in hours)

1. Screening interview only ............................................................................. 13,333 1 0.167 2,2272. Screener and family interviews only ............................................................ 500 1 0.434 2173. Screener, family, and SP interviews only .................................................... 882 1 1.101 9714. Screener, family, and SP interviews and primary MEC exam only ............ 4,951 1 6.669 33,0185. Screener, household, and SP interviews, primary MEC exam and full

MEC replicate exam ..................................................................................... 248 1 11.669 2,8946. Screener, household, and SP interviews, and home exam ........................ 50 1 1.851 937. Quality control verification ........................................................................... 1,333 1 0.030 408. Special studies ............................................................................................ 2,067 1 0.500 1,034

Total .......................................................................................................... ........................ ........................ ........................ 40,494

Dated: May 4, 2001.

Nancy Cheal,Acting Associate Director for Policy, Planningand Evaluation Centers for Disease Controland Prevention.[FR Doc. 01–11814 Filed 5–9–01; 8:45 am]



Centers for Disease Control andPrevention

[60 Day–01–36]

Proposed Data Collections Submittedfor Public Comment andRecommendations

In compliance with the requirementof Section 3506(c)(2)(A) of thePaperwork Reduction Act of 1995 foropportunity for public comment onproposed data collection projects, theCenters for Disease Control andPrevention (CDC) will publish periodic

summaries of proposed projects. Torequest more information on theproposed projects or to obtain a copy ofthe data collection plans andinstruments, call the CDC ReportsClearance Officer on (404) 639–7090.

Comments are invited on: (a) Whetherthe proposed collection of informationis necessary for the proper performanceof the functions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimate of the burden of theproposed collection of information; (c)ways to enhance the quality, utility, andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of information



on respondents, including through theuse of automated collection techniquesor other forms of informationtechnology. Send comments to AnneO’Connor, CDC Assistant ReportsClearance Officer, 1600 Clifton Road,MS–D24, Atlanta, GA 30333. Writtencomments should be received within 60days of this notice.

Proposed ProjectThe State and Local Area Integrated

Telephone Survey (SLAITS)—Revision—OMB No. 0920–0406National Center for Health Statistics(NCHS), Centers for Disease Control andPrevention (CDC). This is a request tocontinue for three years the integratedand coordinated survey system designedto collect needed health and welfarerelated data at the state and local levels.Using the random-digit-dial samplingframe from the ongoing NationalImmunization Survey (NIS) andComputer Assisted TelephoneInterviewing (CATI), the State and LocalArea Integrated Telephone Survey(SLAITS) has quickly collected andproduced data to monitor health status,child and family well-being, health careutilization, access to care, programparticipation, chronic conditions, andchanges in health care coverage at thestate and local levels. These efforts areconducted in cooperation with federal,state, and local officials. SLAITS offersa centrally administered data collection

mechanism with standardizedquestionnaires and quality controlmeasures which allow comparability ofestimates between states, over time, andwith national data. SLAITS is designedto allow oversampling of populationsubdomains and to meet federal, stateand local needs for subnationalestimates which are compatible withnational data.

For some SLAITS modules,questionnaire content was drawn fromexisting surveys including the NationalHealth Interview Survey (NHIS), theNational Health and NutritionExamination Survey (NHANES), theCurrent Population Survey (CPS), theSurvey of Income and ProgramParticipation (SIPP), the NationalHousehold Education Survey, and theNational Survey of America’s Families.Other questionnaire modules weredeveloped specifically for SLAITSduring the pilot study phase and duringthe past three years. The existingmodules include General Health, ChildWell-Being and Welfare, Children withSpecial Health Care Needs, AsthmaPrevalence and Treatment, Knowledgeof Medicaid and the State Children’sHealth Insurance Program (SCHIP),Survey of Early Childhood Health, andHIV/STD Related Risk Behavior.

Over the past three years, SLAITS hasprovided policy analysts, programplanners, and researchers with highquality data for decision making and

program assessment. The module onMedicaid and SCHIP will be featuredprominently in a report to Congress oninsuring children. The module onchildren with special health care needs(CSHCN) will be used by federal andstate Maternal and Child Health BureauDirectors in evaluating programs andservice needs. The American Academyof Pediatrics is using the module onearly childhood health to advisepediatricians on patient care standardsand informing parents about the healthand well-being of young children.

Funding for SLAITS is obtainedthrough a variety of mechanismsincluding Foundation grants, Statecollaborations, and federalappropriation and evaluation monies.The level of implementation depends onthe amount of funding received and canbe expanded as funding permits.Questionnaire modules will becompiled to address the data needs ofinterest to the federal, state or localfunding agency or organization. Possibletopics include but are not limited todisability, children’s health, violenceagainst women, health behaviors,unintentional injuries, programparticipation, health care coverage, orany of the topics previously studied.The burden table below is annualized.There is no cost to respondents otherthan their time.

Respondents Number ofrespondents

Number ofresponses/respondent

Averageburden/

response inhours

Total burdenin hours

Noninstitutionalized household population in 50 States and D.C. .................. 204,000 1 0.30 61,200Pretest modules ............................................................................................... 1,800 1 0.30 600

Total Burden ............................................................................................. 205,800 ........................ ........................ 61,800

Dated: May 4, 2001.

Nancy Cheal,Acting Associate Director for Policy, Planningand Evaluation Centers for Disease Controland Prevention.[FR Doc. 01–11815 Filed 5–9–01; 8:45 am]



Administration for Children andFamilies

[Program Announcement No. 93631–01–02]

Developmental Disabilities: FinalNotice of Availability of FinancialAssistance and Request forApplications To SupportDemonstration Projects Under theProjects of National SignificanceProgram

AGENCY: Administration onDevelopmental Disabilities (ADD), ACF,DHHS.ACTION: Invitation to apply for financialassistance.

SUMMARY: The Administration onDevelopmental Disabilities,Administration for Children andFamilies, announces that applicationsare being accepted for funding of FiscalYear 2001 Projects of NationalSignificance.

This program announcement consistsof five parts. Part I, the Introduction,discusses the goals and objectives ofACF and ADD. Part II provides thenecessary background information onADD for applicants. Part III describesthe review process. Part IV describes thepriority under which ADD requestsapplications for Fiscal Year 2001funding of projects. Part V describes indetail how to prepare and submit anapplication.

Grants will be awarded under thisprogram announcement subject to the



availability of funds for support of theseactivities.DATES: The closing date for submittal ofapplications under this announcementis July 9, 2001. Mailed or hand-carriedapplications received after 4:30 p.m. onthe closing date will be classified aslate.

Deadline: Mailed applications shall beconsidered as meeting an announceddeadline if they are received on orbefore the deadline time and date at theU.S. Department of Health and HumanServices, ACF/Administration onDevelopmental Disabilities, 370L’Enfant Promenade SW., Mail Stop326–HHH, Washington, DC 20447,Attention: Lois Hodge.

Acceptable proof of timely mailing isrequired. A postmark from a commercialmail service must include the logo/emblem of the commercial mail servicecompany and must reflect the date thepackage was received by the commercialmail service company from theapplicant. Private Metered postmarksshall not be acceptable as proof oftimely mailing.

Applications hand-carried byapplicants, applicant couriers, otherrepresentatives of the applicant, or byovernight/express mail couriers shall beconsidered as meeting an announceddeadline if they are received on orbefore the deadline date, between thehours of 8 a.m. and 4:30 p.m., EST, atthe U.S. Department of Health andHuman Services, ACF/Office of GrantsManagement, 370 L’Enfant PromenadeSW, ACF Mail Center, 2nd Floor (nearloading dock), Aerospace Center, 901 DStreet, SW, Washington, DC 20024,between Monday and Friday (excludingFederal holidays). This address mustappear on the envelope/packagecontaining the application with the note‘‘Attention: Lois Hodge’’. Applicantsusing express/overnight services shouldallow two working days prior to thedeadline date for receipt of applications.(Applicants are cautioned that express/overnight mail services do not alwaysdeliver as agreed.) Any applicationsreceived after 4:30 p.m. on the deadlinedate will not be considered forcompetition.

ACF cannot accommodatetransmission of applications by fax orthrough other electronic media.Therefore, applications transmitted toACF electronically will not be acceptedregardless of date or time of submissionand time of receipt.

Late Applications: Applicationswhich do not meet the criteria above areconsidered late applications. ACF shallnotify each late applicant that itsapplication will not be considered inthe current competition.

Extension of Deadlines: ACF mayextend the deadline for all applicantsbecause of acts of God such as floodsand hurricanes, etc., widespreaddisruption of the mails or when it isanticipated that many of theapplications will come from rural orremote areas. However, if ACF does notextend the deadline for all applicants, itmay not waive or extend the deadlinefor any applicants.ADDRESSES: Application materials areavailable from Debbie Powell, 370L’Enfant Promenade, SW., Rm. 300F,Washington, DC 20447, 202/690–5911,http://www.acf.dhhs.gov/programs/add; or [email protected] FURTHER INFORMATION CONTACT:Administration for Children andFamilies (ACF), Debbie Powell, 370L’Enfant Promenade, SW., Rm. 300F,Washington, DC 20447, 202/690–5911;or [email protected].

Notice of Intent to SubmitApplication: If you intend to submit anapplication, please send a post cardwith the number and title of thisannouncement, the Area of Emphasisyou wish to apply under, yourorganization’s name and address, andyour contact person’s name, phone andfax numbers, and e-mail address to:Administration on DevelopmentalDisabilities, 370 L’Enfant PromenadeSW, Washington, DC 20447, Attn:Projects of National Significance.

This information will be used todetermine the number of expertreviewers needed and to update themailing list to whom programannouncements are sent.SUPPLEMENTARY INFORMATION:

Part I. General Information

A. Goals of the Administration onDevelopmental Disabilities

The Administration onDevelopmental Disabilities (ADD) islocated within the Administration forChildren and Families (ACF),Department of Health and HumanServices (DHHS). Although differentfrom the other ACF programadministrations in the specificpopulations it serves, ADD shares acommon set of goals that promote theeconomic and social well being offamilies, children, individuals andcommunities. Through nationalleadership, ACF and ADD envision:

• Families and individualsempowered to increase their owneconomic independence andproductivity;

• Strong, healthy, supportivecommunities having a positive impacton the quality of life and thedevelopment of children;

• Partnerships with individuals,front-line service providers,communities, States and Congress thatenable solutions which transcendtraditional agency boundaries;

• Services planned and integrated toimprove client access;

• A strong commitment to workingwith Native Americans, persons withdevelopmental disabilities, refugees andmigrants to address their needs,strengths and abilities; and

• A community-based approach thatrecognizes and expands on theresources and benefits of diversity.

Emphasis on these goals and progresstoward them will help moreindividuals, including people withdevelopmental disabilities, to liveproductive and independent livesintegrated into their communities. TheProjects of National SignificanceProgram is one means through whichADD promotes the achievement of thesegoals.

B. Purpose of the Administration onDevelopmental Disabilities

The Administration onDevelopmental Disabilities (ADD) is thelead agency within ACF and DHHSresponsible for planning andadministering programs which promotethe self-sufficiency and protect therights of persons with developmentaldisabilities.

The Developmental DisabilitiesAssistance and Bill of Rights Act of2000 (42 U.S.C. 6000, et seq.) (The Act)supports and provides assistance toStates and public and private nonprofitagencies and organizations to assurethat individuals with developmentaldisabilities and their families participatein the design of and have access toculturally competent services, supports,and other assistance and opportunitiesthat promote independence,productivity, integration and inclusioninto the community.

In the Act, Congress expressly foundthat:

• Disability is a natural part of thehuman experience that does notdiminish the right of individuals withdevelopmental disabilities to enjoy theopportunity for independence,productivity, integration and inclusioninto the community;

• Individuals whose disabilities occurduring their developmental periodfrequently have severe disabilities thatare likely to continue indefinitely;

• Individuals with developmentaldisabilities often require lifelongspecialized services and assistance,provided in a coordinated andculturally competent manner by manyagencies, professionals, advocates,



community representatives, and othersto eliminate barriers and to meet theneeds of such individuals and theirfamilies;

The Act further established as thepolicy of the United States:

• Individuals with developmentaldisabilities, including those with themost severe developmental disabilities,are capable of achieving independence,productivity, integration and inclusioninto the community, and often requirethe provision of services, supports andother assistance to achieve such;

• Individuals with developmentaldisabilities have competencies,capabilities and personal goals thatshould be recognized, supported, andencouraged, and any assistance to suchindividuals should be provided in anindividualized manner, consistent withthe unique strengths, resources,priorities, concerns, abilities, andcapabilities of the individual;

• Individuals with developmentaldisabilities and their families are theprimary decision makers regarding theservices and supports such individualsand their families receive; and playdecision making roles in policies andprograms that affect the lives of suchindividuals and their families; and

• It is in the nation’s interest forpeople with developmental disabilitiesto be employed, and to liveconventional and independent lives as apart of families and communities.

Toward these ends, ADD seeks: toenhance the capabilities of families inassisting people with developmentaldisabilities to achieve their maximumpotential; to support the increasingability of people with developmentaldisabilities to exercise greater choiceand self-determination; to engage inleadership activities in theircommunities; as well as to ensure theprotection of their legal and humanrights.

The four programs funded under theAct are:

• Federal assistance to StateDevelopmental Disabilities Councils;

• State system for the protection andadvocacy of individuals rights;

• Grants to the National Network ofUniversity Centers for Excellence inDevelopmental Disabilities Education,Research, and Service forinterdisciplinary training, exemplaryservices, technical assistance, researchand information dissemination; and

• Grants for Projects of NationalSignificance.

C. Statutory Authorities Covered UnderThis Announcement

The Developmental DisabilitiesAssistance and Bill of Rights Act of

2000, 42 U.S.C. 15000, et seq. TheProjects of National Significance is PartE of the Developmental DisabilitiesAssistance and Bill of Rights Act of2000, 42 U.S.C. 15081, et seq.

Part II. Background Information forApplicants

A. Description of Projects of NationalSignificance

Under Part E of the Act, grants andcontracts are awarded for projects ofnational significance that support thedevelopment of national and Statepolicy to enhance the independence,productivity, and integration andinclusion of individuals withdevelopmental disabilities through:

• Data collection and analysis;• Technical assistance to enhance the

quality of State developmentaldisabilities councils, protection andadvocacy systems, and universityaffiliated programs; and

• Other projects of sufficient size andscope that hold promise to expand orimprove opportunities for people withdevelopmental disabilities, including:—Technical assistance for the

development of information andreferral systems;

—Educating policy makers;—Federal interagency initiatives;—The enhancement of participation of

minority and ethnic groups in publicand private sector initiatives indevelopmental disabilities; and

—Transition of youth withdevelopmental disabilities fromschool to adult life.The purpose of the Projects of

National Significance program is notonly to provide technical assistance tothe Developmental DisabilitiesCouncils, the Protection and AdvocacySystems, and the University Centers forExcellence, but also to support projects‘‘that hold promise to expand orimprove opportunities for people withdevelopmental disabilities.’’Representing only 4% of ADD’s federaldollars, PNS funds have initiatedcutting edge projects, such as the‘‘Reinventing Quality: PromisingPractices in Person-CenteredCommunity Services and qualityAssurance for People with DevelopmentDisabilities’’ that are at the forefront ofthe developmental disabilities fieldchallenging traditional thinking andpractices. The Area of Emphasis whichare directly related to ADD’s outcomescontained in its ‘‘Roadmap to theFuture,’’ our plan for implementingGPRA, is intended to increasecommunity support and promote self-determination, and encourageinteraction, and collaboration among all

sectors of the DevelopmentalDisabilities field to attain and shareinformation.

Part III. The Review Process

A. Eligible Applicants

Before applications under thisAnnouncement are reviewed, each willbe screened to determine that theapplicant is eligible for funding asspecified under the selected Area ofEmphasis. Applications fromorganizations which do not meet theeligibility requirements for the PriorityArea will not be considered or reviewedin the competition, and the applicantwill be so informed.

Only public or non-profit privateentities, not individuals, are eligible toapply under any of the Areas ofEmphasis. All applications developedjointly by more than one agency ororganization must identify only oneorganization as the lead organizationand official applicant. The otherparticipating agencies and organizationscan be included as co-participants, sub-grantees or subcontractors.

Nonprofit organizations must submitproof of nonprofit status in theirapplications at the time of submission.One means of accomplishing this is byproviding a copy of the applicant’slisting in the Internal Revenue Service’smost recent list of tax-exemptorganizations described in section501(c)(3) of the IRS code or by providinga copy of the currently valid IRS taxexemption certificate, or by providing acopy of the articles of incorporationbearing the seal of the State in whichthe corporation or association isdomiciled.

ADD cannot fund a nonprofitapplicant without acceptable proof of itsnonprofit status.

B. Review Process and FundingDecisions

Timely applications under thisAnnouncement from eligible applicantsreceived by the deadline date will bereviewed and scored competitively.Experts in the field, generally personsfrom outside of the Federal government,will use the appropriate evaluationcriteria listed later in this Part to reviewand score the applications. The resultsof this review are a primary factor inmaking funding decisions.

ADD reserves the option of discussingapplications with, or referring them to,other Federal or non-Federal fundingsources when this is determined to bein the best interest of the Federalgovernment or the applicant. It may alsosolicit comments from ADD RegionalOffice staff, other Federal agencies,



interested foundations, nationalorganizations, specialists, experts, Statesand the general public. Thesecomments, along with those of theexpert reviewers, will be considered byADD in making funding decisions.

In making decisions on awards, ADDwill consider whether applicationsfocus on or feature: Services toculturally diverse or ethnic populationsamong others; a substantially innovativestrategy with the potential to improvetheory or practice in the field of humanservices; a model practice or set ofprocedures that holds the potential forreplication by organizationsadministering or delivering of humanservices; substantial involvement ofvolunteers; substantial involvement(either financial or programmatic) of theprivate sector; a favorable balancebetween Federal and non-Federal fundsavailable for the proposed project; thepotential for high benefit for lowFederal investment; a programmaticfocus on those most in need; and/orsubstantial involvement in the proposedproject by national or communityfoundations.

This year, 5 points will be awarded inscoring for any project that includespartnership and collaboration with the140 Empowerment Zones/EnterpriseCommunities. A discussion of how theinvolvement of the EZ/EC is related tothe objectives and/or the activities of theproject must be clearly outlined for theaward of the 5 points. Also, a letter fromthe appropriate representatives of theEZ/EC must accompany the applicationindicating its agreement to participateand describing its role in the project.

To the greatest extent possible, effortswill be made to ensure that fundingdecisions reflect an equitabledistribution of assistance among theStates and geographical regions of thecountry, rural and urban areas, andethnic populations. In making thesedecisions, ADD may also take intoaccount the need to avoid unnecessaryduplication of effort.

C. Evaluation ProcessUsing the evaluation criteria below, a

panel of at least three reviewers(primarily experts from outside theFederal government) will review theapplications. To facilitate this review,applicants should ensure that theyaddress each minimum requirement inthe Priority Area description under theappropriate section of the ProgramNarrative Statement.

Reviewers will determine thestrengths and weaknesses of eachapplication in terms of the evaluationcriteria listed below, provide comments,and assign numerical scores. The point

value following each criterion headingindicates the maximum numericalweight that each section may be givenin the review process.

D. Structure of Areas of EmphasisDescriptions

The Area of Emphasis description iscomposed of the following sections:

• Eligible Applicants: This sectionspecifies the type of organizationeligible to apply under the particulararea of emphasis. Specific restrictionsare also noted, where applicable.

• Purpose: This section presents thebasic focus and/or broad goal(s) of thearea of emphasis.

• Background Information: Thissection briefly discusses the legislativebackground as well as the current state-of-the-art and/or current state-of-practice that supports the need for theparticular area of emphasis activity.Relevant information on projectspreviously funded by ACF and/or otherState models are noted, whereapplicable.

• Evaluation Criteria: This sectionpresents the basic set of issues that mustbe addressed in the application.Typically, they relate to need forassistance, results expected, projectdesign, and organizational and staffcapabilities. Inclusion and discussion ofthese items is important since theinformation provided will be used bythe reviewers in evaluating theapplication against the evaluationcriteria. Applicants should review thesection on the Uniform ProjectDescription and the evaluation sectionunder the priority area.

• Minimum Requirements for ProjectDesign: This section presents the basicset of issues that must be addressed inthe application. Typically, they relate toproject design, evaluation, andcommunity involvement. This sectionalso asks for specific information on theproposed project. Inclusion anddiscussion of these items is importantsince they will be used by the reviewersto evaluate the applications against theevaluation criteria. Project products,continuation of the project after Federalsupport ceases, and dissemination/utilization activities, if appropriate, arealso addressed.

• Project Duration: This sectionspecifies the maximum allowable lengthof the project period; it refers to theamount of time for which Federalfunding is available.

• Federal Share of Project Costs: Thissection specifies the maximum amountof Federal support for the project.

• Matching Requirement: This sectionspecifies the minimum non-Federal

contribution, either cash or in-kindmatch, required.

• Anticipated Number of Projects ToBe Funded: This section specifies thenumber of projects ADD anticipatesfunding under the Priority Area.

• CFDA: This section identifies theCatalog of Federal Domestic Assistance(CFDA) number and title of the programunder which applications in thisPriority Area will be funded. Thisinformation is needed to complete item10 on the SF 424.

Please note that applications underthis Announcement that do not complywith the specific Priority Arearequirements in the section on ‘‘EligibleApplicants’’ will not be reviewed.

Applicants under this Announcementmust clearly identify the specific area ofemphasis under which they wish tohave their applications considered, andtailor their applications accordingly.Experience has shown that anapplication which is broader and moregeneral in concept than outlined in thearea of emphasis description is lesslikely to score as well as an applicationmore clearly focused on, and directlyresponsive to, the concerns of thatspecific area of emphasis.

E. Available Funds

ADD intends to award new grantsresulting from this announcementduring the fourth quarter of fiscal year2001, subject to the availability offunding. The Priority Area descriptionincludes information on the maximumFederal share of the project costs andthe anticipated number of projects to befunded.

The term ‘‘budget period’’ refers to theinterval of time (usually 12 months) intowhich a multi-year period of assistance(project period) is divided for budgetaryand funding purposes. The term‘‘project period’’ refers to the total timea project is approved for support,including any extensions.

Where appropriate, applicants maypropose shorter project periods than themaximums specified in the variousareas of emphasis. Non-Federal sharecontributions may exceed theminimums specified in the various areasof emphasis.

For multi-year projects, continuedFederal funding beyond the first budgetperiod, but within the approved projectperiod, is subject to the availability offunds, satisfactory progress of thegrantee and a determination thatcontinued funding would be in the bestinterest of the Government.

F. Grantee Share of Project Costs

Grantees must match $1 for every $3requested in Federal funding to reach



25% of the total approved cost of theproject. The total approved cost of theproject is the sum of the ACF share andthe non-Federal share. The non-Federalshare may be met by cash or in-kindcontributions, although applicants areencouraged to meet their matchrequirements through cashcontributions. Therefore, a projectrequesting $100,000 in Federal funds(based on an award of $100,000 perbudget period) must include a match ofat least $33,333 (total project cost is$133,333, of which $33,333 is 25%).

An exception to the grantee cost-sharing requirement relates toapplications originating from AmericanSamoa, Guam, the Virgin Islands, andthe Commonwealth of the NorthernMariana Islands. Applications fromthese areas are covered under section501(d) of Pub. L. 95–134, which requiresthat the Department waive ‘‘anyrequirement for local matching funds forgrants under $200,000.’’

The applicant contribution mustgenerally be secured from non-Federalsources. Except as provided by Federalstatute, a cost-sharing or matchingrequirement may not be met by costsborne by another Federal grant.However, funds from some Federalprograms benefiting Tribes and NativeAmerican organizations have been usedto provide valid sources of matchingfunds. If this is the case for a Tribe orNative American organizationsubmitting an application to ADD, thatorganization should identify theprograms which will be providing thefunds for the match in its application.If the application successfully competesfor PNS grant funds, ADD willdetermine whether there is statutoryauthority for this use of the funds. TheAdministration for Native Americansand the DHHS Office of General Counselwill assist ADD in making thisdetermination.

G. General Instructions for the UniformProject Description

The following ACF Uniform ProjectDescription (UPD) has been approvedunder OMB Control Number 0970–0139.Applicants are required to submit a fullproject description and must preparethe project description statement inaccordance with the followinginstructions.

1. Project summary/abstract: Providea summary of the project description (apage or less) with reference to thefunding request.

2. Objectives and Need for Assistance:Clearly identify the physical, economic,social, financial, institutional and/orother problem(s) requiring a solution.The need for assistance must be

demonstrated and the principal andsubordinate objectives of the projectmust be clearly stated; supportingdocumentation, such as letters ofsupport and testimonies from concernedinterests other than the applicant, maybe included. Any relevant data based onplanning studies should be included orreferred to in the endnotes/footnotes.Incorporate demographic data andparticipant/beneficiary information, asneeded. In developing the projectdescription, the applicant mayvolunteer or be requested to provideinformation on the total range ofprojects currently being conducted andsupported (or to be initiated) some ofwhich may be outside the scope of theprogram announcement.

3. Results or Benefits Expected:Identify the results and benefits to bederived. For example, when applyingfor a grant to establish a neighborhoodchild care center, describe who willoccupy the facility, who will use thefacility, how the facility will be used,and how the facility will benefit thecommunity which it will serve.

4. Approach: Outline a plan of actionwhich describes the scope and detail ofhow the proposed work will beaccomplished. Account for all functionsor activities identified in theapplication. Cites factors which mightaccelerate or decelerate the work, andstate your reason for taking theproposed approach rather than others.Describe any unusual features of theproject such as design or technologicalinnovations, reductions in cost or time,or extraordinary social and communityinvolvement. Provide quantitativemonthly or quarterly projections of theaccomplishments to be achieved foreach function or activity in such termsas the number of people to be servedand the number of microloans made.When accomplishments cannot bequantified by activity or function, listthem in chronological order to show theschedule of accomplishments and theirtarget dates.

Identify the kinds of data to becollected, maintained, and/ordisseminated. Note that clearance fromthe U.S.Office of Management andBudget might be needed prior to a‘‘collection of information’’ that is‘‘conducted or sponsored’’ by ACF. Listorganizations, cooperating entities,consultants, or other key individualswho will work on the project along witha short description of the nature of theireffort or contribution.

5. Organization Profile: Provideinformation on the applicantorganization(s) and cooperating partnerssuch as organizational charts, financialstatements, audit reports or statements

from CPAs/Licensed PublicAccountants, Employer IdentificationNumbers, names of bond carriers,contact persons and telephone numbers,child care licenses and otherdocumentation of professionalaccreditation, information oncompliance with Federal/State/localgovernment standards, documentationof experience in the program area, andother pertinent information. Any non-profit organization submitting anapplication must submit proof of itsnon-profit status in its application at thetime of submission. The non-profitagency can accomplish this byproviding a copy of the applicant’slisting in the Internal Revenue Service’s(IRS) most recent list of tax-exemptorganizations described in section501(c)(3) of the IRS code, or byproviding a copy of the currently validIRS tax exemption certificate, or byproviding a copy of the articles ofincorporation bearing the seal of theState in which the corporation orassociation is domiciled.

Part IV. Fiscal Year 2001 Areas ofEmphasis for Projects of NationalSignificance—Description andRequirements

The following section presents thePriority Areas for Fiscal Year 2001Projects of National Significance (PNS)and solicits the appropriateapplications.

Fiscal Year 2001 Priority Area 1: RapidDeployment of Good Ideas

• Eligible Applicants: State agencies,public or private nonprofitorganizations, institutions or agencies,including a consortia of some or all ofthe above.

• Purpose: ADD is interested inawarding grant funds for new projectsmodels in the field of developmentaldisabilities in the following Areas ofEmphasis:

1. Quality assurance activities,2. Education and early intervention

activities,3. Child care-related activities,4. Health-related activities,5. Employment-related activities,6. Housing-related activities,7. Transportation-related activities

and8. Recreation-related activities.These eight Areas of Emphasis were

identified by ADD together with theprograms it funds, as the framework forimplementing diverse strategies andactivities, and achieving outcomesnecessary to move closer to theprinciples of independence,productivity, integration, and inclusionfor people with developmental



disabilities. ADD is interested inprojects which will transfer informationand knowledge through the utilizationof creative and innovative methods ofimplementation, replication anddissemination. These projects mustdemonstrate proven success byincreasing the independence,productivity, integration and inclusionof people with developmentaldisabilities and their families incommunities in which they live.

• Background Information:The ADD’s ‘‘Roadmap to the Future,’’

which was developed together with theprograms it funds, establishes a courseof action for ADD and for its programs.The Roadmap defines the mission andvision of ADD, of the StateDevelopmental Disabilities Councils(DDCs), of the Protection and AdvocacySystems (P&As), of the NationalNetwork of University Centers forExcellence in DevelopmentalDisabilities in Education, Research andService (UCEs), and of the Projects ofNational Significance (PNS). It identifiesgoals created to increase theindependence, productivity, andintegration and inclusion of people withdevelopmental disabilities and theirfamilies. Program activities will bedirected toward achieving the Roadmapgoals through advocacy, capacitybuilding, and systemic change activitiesin the eight Areas of Emphasis.

The Projects of National Significance(PNS) Program is one of the activities ofADD. Every year since 1975 there havebeen model demonstration projectsfunded to increase the independence,productivity, and integration andinclusion of people with developmentaldisabilities. These projects havegenerated inventive approaches,strategies, and methodologies designedto address pervasive problems or needsof individuals with developmentaldisabilities and their families. Over theyears, PNS projects have contributed tothe knowledge base of thedevelopmental disabilities field and thelarger disability field as well. In the pastdecade, the leadership capacity ofindividuals with developmentaldisabilities, especially self-advocates,has been nourished and strengthened bythe funding of PNS projects.

New design models of transferringknowledge and fostering utilizationmust be explored if we are to meet theneeds of Americans with disabilitiesand their families. ADD is extremelyinterested in supporting this transfer ofknowledge and information from newmodels under this Priority Area.

These models must surpass ourstandard methods of communicatingbest practices and practical solutions to

those we serve and those who servethem. Projects must be outcomedriven—demonstrating effectivenessand behavioral changes of the targetedpopulation. They must:

• Be culturally competent.• Demonstrate strong collaborations

through partnerships and coalitions.• Be community-based and include

consumers and their families as keyparticipants where appropriate.

The content area must focus on asingle Area of Emphasis. ADD isinterested in applications to promoteprojects with proven, positive results-based practices, methodologies orprocesses in the field of developmentaldisabilities or a directly related fieldsuch as universal design. The model tobe promoted can be as expansive assystems change or a new paradigm, oras targeted as a new trainingcurriculum. These new models shouldconsider creative partnering inimplementing the project.

In the last century we were thebeneficiaries of extraordinary humandevelopments that would have beenconsidered inconceivable by many; thisprogress has raised our expectations forthis new century. This is no less true forpeople with developmental disabilitiesand their families who, in this age of theInternet, the PC, and satellitedownlinks, expect there will be newmodels available to everyone who needsthem. ADD views this Priority Area asan unprecedented opportunity to takewhat we have learned through federallyfunded projects and find enterprising,inventive, and imaginative wayspromoting the use of the knowledge sothat all will benefit—people withdevelopmental disabilities and otherdisabilities, professionals who servethem, their families, and thecommunities in which they live, in allsegments of our American society.

• Minimum Requirements for ProjectDesign: ADD is particularly interested insupporting projects which include thefollowing:

• Partnerships between consumers/advocacy organizations, researchfoundations, public/private entities andothers to coordinate, implement anddisseminate information and transfer ofknowledge to a broad audience toinclude consumers and their familiesand entities that serve them.

• Project design must address barriersand issues of access to the mechanism(s)used to transfer knowledge andinformation, for persons using variousassistive devices and equipment.

• All projects shall provide for thewidespread distribution of theirproducts (reports, summary documents,audio-visual materials, etc.) in

accessible format and in languages otherthan English.

• Describe and develop methods/plans to be used to continue the transferof knowledge and information once theproject period ends.

• Develop and implement anevaluation process to ensure thatsystematic and objective information isavailable about the utilization andeffectiveness of the products from thisproject.

• Specific outcomes tied to the ADD‘‘Roadmap to the Future’’ to increase theindependence, productivity, integrationand inclusion of individuals withdevelopmental disabilities must be builtinto the project for dissemination to aboard audience.

• Describe measurable outcomes.As a general guide, ADD will expect

to fund only those proposals for projectsthat incorporate the following elements:

• Consumer/self-advocate orientationand participation.

• Key project personnel who havedirect life experience with living with adisability.

• Strong advisory components thatconsist of a majority of individuals withdisabilities and a structure whereindividuals with disabilities make realdecisions that determine the outcome ofthe grant.

• Research reflecting the principles ofparticipatory action.

• Cultural competency.• A description of how individuals

with disabilities and their families willbe involved in all aspects of the design,implementation, and evaluation of theproject.

• Attention to unserved andinadequately served individuals, frommulticultural backgrounds, rural andinner-city areas, migrant, homeless, andrefugee families, with disabilities.

• Compliance with the Americanswith Disabilities Act and Section 504 ofthe Rehabilitation Act of 1973 asamended by the Rehabilitation Actamendments of 1992 (Pub.L. 102–569).

• Collaboration through partnershipsand coalitions.

• Development of the capacity tocommunicate and disseminateinformation and technical assistancethrough e-mail and other effective,affordable, and accessible forms ofelectronic communication.

• Development and establishment ofpractices and programs beyond projectperiod.

• Dissemination of models, products,best practices, and strategies fordistribution between the networks andbeyond. A plan describing initialactivities is needed between fundedprojects as well as at the end of the



project period. These activities shouldmaintain and share ongoinginformation, existing resources ofconsultants/experts, and curriculum/materials with funded projects andwithin the network.

Evaluation Criteria: The four criteriathat follow will be used to review andevaluate each application under thespecific area of emphasis. Each criterionshould be addressed in the projectdescription section of the application.The point values indicate the maximumnumerical weight each criterion will beaccorded in the review process. Thespecific information to be includedunder each of these headings isdescribed in Section G of Part III,General Instructions for the UniformProject Description. Additionalinformation that must be addressed isdescribed below.

Criterion 1: Objectives and Need forAssistance (20 points)

The application must identify theprecise location of the project and areato be served by the proposed project.Maps and other graphic aids must beattached.

Criterion 2: Results or Benefits Expected(20 points)

The extent to which they areconsistent with the objectives of theapplication, and the extent to which theapplication indicates the anticipatedcontributions to policy, practice, theoryand/or research. The extent to which theproposed project costs is reasonable inview of the expected results.

Criterion 3: Approach (35 points)

Discuss the criteria to be used toevaluate the results, and explain themethodology that will be used todetermine if the needs identified anddiscussed are being met and if theresults and benefits identified are beingachieved.

Criterion 4: Organization Profile (25points)

The application identifies thebackground of the project director/principal investigator and key projectstaff (including name, address, training,educational background and otherqualifying experience) and theexperience of the organization todemonstrate the applicant’s ability toeffectively and efficiently administerthis project. The application describesthe relationship between this projectand the other work planned, anticipatedor under way by the applicant which isbeing supported by Federal assistance.

This section should consist of a brief(two to three pages) background

description of how the applicantorganization (or the unit within theorganization that will haveresponsibility for the project) isorganized, the types and quantity ofservices it provides, and/or the researchand management capabilities itpossesses. It may include description ofany current or previous relevantexperience, or describe the competenceof the project team and its demonstratedability to produce a final product that isreadily comprehensible and usable. Anorganization chart showing therelationship of the project to the currentorganization must be included.

• Project Duration: Thisannouncement is soliciting applicationsfor project periods up to three yearsunder this Priority Area. Awards, on acompetitive basis, will be for a one-yearbudget period, although project periodsmay be for three years. Applications forcontinuation grants funded under thisPriority Area beyond the one-yearbudget period, but within the three-yearproject period, will be entertained insubsequent years on a non-competitivebasis, subject to the availability offunds, satisfactory progress of thegrantee, and determination thatcontinued funding would be in the bestinterest of the Government.

• Federal Share of Project Costs: Themaximum Federal share is not to exceed$100,000 for the first 12-month budgetperiod or a maximum of $300,000 for athree-year project period.

• Matching Requirement: Granteesmust match $1 for every $3 requested inFederal funding to reach 25% of thetotal approved cost of the project. Thetotal approved cost of the project is thesum of the ACF share and the non-Federal share. The non-Federal sharemay be met by cash or in-kindcontributions, although applicants areencouraged to meet their matchrequirements through cashcontributions. Therefore, a projectrequesting $100,000 in Federal funds(based on an award of $100,000 perbudget period) must include a match ofat least $33,333 (the total project cost is$133,333, of which $33,333 is 25%).

• Anticipated Number of Projects tobe Funded: It is anticipated that up tothirteen (13) projects will be funded.

• CFDA: ADD’s CFDA (Code ofFederal Domestic Assistance) number is93.631— Developmental Disabilities—Projects of National Significance. Thisinformation is needed to complete item10 on the SF424.

Part V. Instructions for theDevelopment and Submission ofApplications

This Part contains information andinstructions for submitting applicationsin response to this announcement. Anapplication package containing formscan be obtained by any of the followingmethods: Debbie Powell, ADD, 370L’Enfant Promenade SW., Washington,DC 20447, 202/690–5911; http://www.acf.dhhs.gov/programs/add; [email protected].

Potential applicants should read thissection carefully in conjunction withthe information contained within thespecific area of emphasis under whichthe application is to be submitted. TheArea’s of Emphasis descriptions are inPart IV.

A. Required Notification of the StateSingle Point of Contact (SPOC)

All applications under the ADDPriority Area are required to follow theExecutive Order (E.O.) 12372 process,‘‘Intergovernmental Review of FederalPrograms,’’ and 45 CFR part 100,‘‘Intergovernmental Review ofDepartment of Health and HumanServices Program and Activities.’’ Underthe Order, States may design their ownprocesses for reviewing andcommenting on proposed Federalassistance under covered programs.

Note: State/Territory participation in theintergovernmental review process does notsignify applicant eligibility for financialassistance under a program. A potentialapplicant must meet the eligibilityrequirements of the program for which it isapplying prior to submitting an applicationto its SPOC, if applicable, or to ACF.

As of November 20, 1998, all Statesand territories, except Alabama, Alaska,American Somoa, Colorado,Connecticut, Hawaii, Idaho, Kansas,Louisiana, Massachusetts, Minnesota,Montana, Nebraska, New Jersey, Ohio,Oklahoma, Oregon, Palau,Pennsylvania, South Dakota, Tennessee,Vermont, Virginia, and Washingtonhave elected to participate in theExecutive Order process and haveestablished a State Single Point ofContact (SPOC). Applicants from thesejurisdictions or for projectsadministered by Federally-recognizedIndian Tribes need take no actionregarding E.O. 12372. Otherwise,applicants should contact their SPOCsas soon as possible to alert them of theprospective applications and receiveany necessary instructions.

Applicants must submit all requiredmaterials to the SPOC as soon aspossible so that the program office canobtain and review SPOC comments aspart of the award process. It is



imperative that the applicant submit allrequired materials and indicate the dateof this submittal (or date SPOC wascontacted, if no submittal is required)on the SF 424, item 16a.

Under 45 CFR 100.8(a)(2), a SPOC has60 days from the application due dateto comment on proposed new orcompeting continuation awards.However, there is insufficient time toallow for a complete SPOC commentperiod. Therefore, we have reduced thecomment period to 30 days from theclosing date for applications. Thesecomments are reviewed as part of theaward process. Failure to notify theSPOC can result in delays in awardinggrants.

SPOCs are encouraged to eliminatethe submission of routine endorsementsas official recommendations.Additionally, SPOCs are requested toclearly differentiate between mereadvisory comments and those officialState process recommendations whichmay trigger the ‘‘accommodate orexplain’’ rule.

When comments are submitteddirectly to ACF, they should beaddressed to: Department of Health andHuman Services, Administration onChildren Youth and Families, Office ofGrants Management, 370 L’EnfantPromenade, SW., Mail Stop 326F–HHH,Washington, DC 20447, Attn: LoisHodge ADD—Projects of NationalSignificance.

Contact information for each State’sSPOC is found at the ADD website(http://www.acf.dhhs.gov/programs/add) or by contacting Debbie Powell,ADD, 370 L’Enfant Promenade SW,Mailstop 300F, Washington, DC, 20447,202/690–5911.

B. Notification of State DevelopmentalDisabilities Councils

A copy of the application must also besubmitted for review and comment tothe State Developmental DisabilitiesCouncil in each State in which theapplicant’s project will be conducted. Alist of the State DevelopmentalDisabilities Councils can be found atADD’s website: http://www.acf.dhhs.gov/programs/add underPrograms, or by contacting DebbiePowell, ADD, 370 L’Enfant PromenadeSW., Mailstop 300F, Washington, DC20447, 202/690–5911.

C. Instructions for Preparing theApplication and CompletingApplication Forms

The SF 424, SF 424A, SF 424A—Page2 and Certifications/ Assurances arecontained in the application package.Please prepare your application in

accordance with the followinginstructions:

1. SF 424 Page 1, Application CoverSheet

Please read the following instructionsbefore completing the application coversheet. An explanation of each item isincluded. Complete only the itemsspecified.

Top of Page: Enter the selected Areaof Emphasis under which theapplication is being submitted.

Item 1. ‘‘Type of Submission’’—Preprinted on the form.

Item 2. ‘‘Date Submitted’’ and‘‘Applicant Identifier’’—Dateapplication is submitted to ACYF andapplicant’s own internal controlnumber, if applicable.

Item 3. ‘‘Date Received By State’’—State use only (if applicable).

Item 4. ‘‘Date Received by FederalAgency’’—Leave blank.

Item 5. ‘‘Applicant Information’’.‘‘Legal Name’’—Enter the legal name

of applicant organization. Forapplications developed jointly, enter thename of the lead organization only.There must be a single applicant foreach application.

‘‘Organizational Unit’’—Enter thename of the primary unit within theapplicant organization which willactually carry out the project activity.Do not use the name of an individual asthe applicant. If this is the same as theapplicant organization, leave theorganizational unit blank.

‘‘Address’’—Enter the completeaddress that the organization actuallyuses to receive mail, since this is theaddress to which all correspondencewill be sent. Do not include both streetaddress and P.O. box number unlessboth must be used in mailing.

‘‘Name and telephone number of theperson to be contacted on mattersinvolving this application (give areacode)’’—Enter the full name (includingacademic degree, if applicable) andtelephone number of a person who canrespond to questions about theapplication. This person should beaccessible at the address given here andwill receive all correspondenceregarding the application.

Item 6. ‘‘Employer IdentificationNumber (EIN)’’—Enter the employeridentification number of the applicantorganization, as assigned by the InternalRevenue Service, including, if known,the Central Registry System suffix.

Item 7. ‘‘Type of Applicant’’—Self-explanatory.

Item 8. ‘‘Type of Application’’—Preprinted on the form.

Item 9. ‘‘Name of Federal Agency’’—Preprinted on the form.

Item 10. ‘‘Catalog of Federal DomesticAssistance Number and Title’’—Enterthe Catalog of Federal DomesticAssistance (CFDA) number assigned tothe program under which assistance isrequested and its title. For the ADDArea of Emphasis, the following shouldbe entered, ‘‘93.631—DevelopmentalDisabilities: Projects of NationalSignificance.’’

Item 11. ‘‘Descriptive Title ofApplicant’s Project’’—Enter the projecttitle. The title is generally short and isdescriptive of the project, not the Areaof Emphasis title.

Item 12. ‘‘Areas Affected byProject’’—Enter the governmental unitwhere significant and meaningfulimpact could be observed. List only thelargest unit or units affected, such asState, county, or city. If an entire unitis affected, list it rather than subunits.

Item 13. ‘‘Proposed Project’’—Enterthe desired start date for the project andprojected completion date.

Item 14. ‘‘Congressional District ofApplicant/Project’’—Enter the numberof the Congressional district where theapplicant’s principal office is locatedand the number of the Congressionaldistrict(s) where the project will belocated. If Statewide, a multi-Stateeffort, or nationwide, enter ‘‘00.’’

Items 15. Estimated Funding Levels—In completing 15a through 15f, thedollar amounts entered should reflect,for a 17-month project period, the totalamount requested. If the proposedproject period exceeds 17 months, enteronly those dollar amounts needed forthe first 12 months of the proposedproject.

Item 15a. Enter the amount of Federalfunds requested in accordance with thepreceding paragraph. This amountshould be no greater than the maximumamount specified in the Area ofEmphasis description.

Items 15b-e. Enter the amount(s) offunds from non-Federal sources thatwill be contributed to the proposedproject. Items b-e are considered cost-sharing or ‘‘matching funds.’’ The valueof third party in-kind contributionsshould be included on appropriate linesas applicable. For more informationregarding funding as well as exceptionsto these rules, see Part III, Sections Eand F, and the specific area of emphasisdescription.

Item 15f. Enter the estimated amountof program income, if any, expected tobe generated from the proposed project.Do not add or subtract this amount fromthe total project amount entered underitem 15g. Describe the nature, sourceand anticipated use of this programincome in the Project NarrativeStatement.



Item 15g. Enter the sum of items 15a–15e.

Item 16a. ‘‘Is Application Subject toReview by State Executive Order 12372Process? Yes.’’—Enter the date theapplicant contacted the SPOC regardingthis application. Select the appropriateSPOC from the listing provided at theend of Part IV. The review of theapplication is at the discretion of theSPOC. The SPOC will verify the datenoted on the application.

Item 16b. ‘‘Is Application Subject toReview by State Executive Order 12372Process? No.’’—Check the appropriatebox if the application is not covered byE.O. 12372 or if the program has notbeen selected by the State for review.

Item 17. ‘‘Is the Applicant Delinquenton any Federal Debt?’’—Check theappropriate box. This question appliesto the applicant organization, not theperson who signs as the authorizedrepresentative. Categories of debtinclude audit disallowances, loans andtaxes.

Item 18. ‘‘To the best of myknowledge and belief, all data in thisapplication/pre-application are true andcorrect. The document has been dulyauthorized by the governing body of theapplicant and the applicant will complywith the attached assurances if theassistance is awarded.’’—To be signedby the authorized representative of theapplicant. A copy of the governingbody’s authorization for signature of thisapplication by this individual as theofficial representative must be on file inthe applicant’s office, and may berequested from the applicant.

Item 18a–c. ‘‘Typed Name ofAuthorized Representative, Title,Telephone Number’’—Enter the name,title and telephone number of theauthorized representative of theapplicant organization.

Item 18d. ‘‘Signature of AuthorizedRepresentative’’—Signature of theauthorized representative named in Item18a. At least one copy of the applicationmust have an original signature. Usecolored ink (not black) so that theoriginal signature is easily identified.

Item 18e. ‘‘Date Signed’’—Enter thedate the application was signed by theauthorized representative.

2. SF 424A—Budget Information—Non-Construction Programs

This is a form used by many Federalagencies. For this application, SectionsA, B, C, E and F are to be completed.Section D does not need to becompleted.

Sections A and B should include theFederal as well as the non-Federalfunding for the proposed projectcovering; (1) the total project period of

17 months or less or (2) the first yearbudget period, if the proposed projectperiod exceeds 15 months.

Section A—Budget Summary. Thissection includes a summary of thebudget. On line 5, enter total Federalcosts in column (e) and total non-Federal costs, including third party in-kind contributions, but not programincome, in column (f). Enter the total of(e) and (f) in column (g).

Section B—Budget Categories. Thisbudget, which includes the Federal aswell as non-Federal funding for theproposed project, covers (1) the totalproject period of 17 months or less or(2) the first-year budget period if theproposed project period exceeds 17months. It should relate to item 15g,total funding, on the SF 424. Undercolumn (5), enter the total requirementsfor funds (Federal and non-Federal) byobject class category.

A separate budget justification shouldbe included to explain fully and justifymajor items, as indicated below. Thetypes of information to be included inthe justification are indicated undereach category. For multiple yearprojects, it is desirable to provide thisinformation for each year of the project.The budget justification shouldimmediately follow the second page ofthe SF 424A.

Personnel—Line 6a. Enter the totalcosts of salaries and wages of applicant/grantee staff. Do not include the costs ofconsultants, which should be includedon line 6h, ‘‘Other.’’

Justification: Identify the principalinvestigator or project director, ifknown. Specify by title or name thepercentage of time allocated to theproject, the individual annual salaries,and the cost to the project (both Federaland non-Federal) of the organization’sstaff who will be working on the project.

Fringe Benefits—Line 6b. Enter thetotal costs of fringe benefits, unlesstreated as part of an approved indirectcost rate.

Justification: Provide a break-down ofamounts and percentages that comprisefringe benefit costs, such as healthinsurance, FICA, retirement insurance,etc.

Travel—6c. Enter total costs of out-of-town travel (travel requiring per diem)for staff of the project. Do not enter costsfor consultant’s travel or localtransportation, which should beincluded on Line 6h, ‘‘Other.’’

Justification: Include the name(s) oftraveler(s), total number of trips,destinations, length of stay,transportation costs and subsistenceallowances.

Equipment—Line 6d. Enter the totalcosts of all equipment to be acquired by

the project. For State and localgovernments, including Federallyrecognized Indian Tribes, ‘‘equipment’’is tangible, non-expendable personalproperty having a useful life of morethan one year and acquisition cost of$5,000 or more per unit.

Justification: Equipment to bepurchased with Federal funds must bejustified. The equipment must berequired to conduct the project, and theapplicant organization or its subgranteesmust not have the equipment or areasonable facsimile available to theproject. The justification also mustcontain plans for future use or disposalof the equipment after the project ends.

Supplies—Line 6e. Enter the totalcosts of all tangible expendable personalproperty (supplies) other than thoseincluded on Line 6d.

Justification: Specify generalcategories of supplies and their costs.

Contractual—Line 6f. Enter the totalcosts of all contracts, including; (1)procurement contracts (except thosewhich belong on other lines such asequipment, supplies, etc.) and (2)contracts with secondary recipientorganizations, including delegateagencies. Also include any contractswith organizations for the provision oftechnical assistance. Do not includepayments to individuals on this line. Ifthe name of the contractor, scope ofwork, and estimated total costs are notavailable or have not been negotiated,include on Line 6h, ‘‘Other.’’

Justification: Attach a list ofcontractors, indicating the names of theorganizations, the purposes of thecontracts, and the estimated dollaramounts of the awards as part of thebudget justification. Whenever theapplicant/grantee intends to delegatepart or all of the program to anotheragency, the applicant/grantee mustcomplete this section (Section B, BudgetCategories) for each delegate agency byagency title, along with the supportinginformation. The total cost of all suchagencies will be part of the amountshown on Line 6f. Provide backupdocumentation identifying the name ofcontractor, purpose of contract, andmajor cost elements.

Construction—Line 6g. Notapplicable. New construction is notallowable.

Other—Line 6h. Enter the total of allother costs. Where applicable, suchcosts may include, but are not limitedto: insurance; medical and dental costs;noncontractual fees and travel paiddirectly to individual consultants; localtransportation (all travel which does notrequire per diem is considered localtravel); space and equipment rentals;printing and publication; computer use;



training costs, including tuition andstipends; training service costs,including wage payments to individualsand supportive service payments; andstaff development costs. Note that costsidentified as ‘‘miscellaneous’’ and‘‘honoraria’’ are not allowable.

Justification: Specify the costsincluded.

Total Direct Charges—Line 6i. Enterthe total of Lines 6a through 6h.

Indirect Charges—6j. Enter the totalamount of indirect charges (costs). If noindirect costs are requested, enter‘‘none.’’ Generally, this line should beused when the applicant (except localgovernments) has a current indirect costrate agreement approved by theDepartment of Health and HumanServices or another Federal agency.

Local and State governments shouldenter the amount of indirect costsdetermined in accordance with HHSrequirements. When an indirect costrate is requested, these costs areincluded in the indirect cost pool andshould not be charged again as directcosts to the grant.

In the case of training grants to otherthan State or local governments (asdefined in title 45, Code of FederalRegulations, part 74), the Federalreimbursement of indirect costs will belimited to the lesser of the negotiated (oractual) indirect cost rate or 8 percent ofthe amount allowed for direct costs,exclusive of any equipment charges,rental of space, tuition and fees, post-doctoral training allowances,contractual items, and alterations andrenovations.

For training grant applications, theentry under line 6j should be the totalindirect costs being charged to theproject. The Federal share of indirectcosts is calculated as shown above. Theapplicant’s share is calculated asfollows:

(a) Calculate total project indirectcosts (a*) by applying the applicant’sapproved indirect cost rate to the totalproject (Federal and non-Federal) directcosts.

(b) Calculate the Federal share ofindirect costs (b*) at 8 percent of theamount allowed for total project(Federal and non-Federal) direct costsexclusive of any equipment charges,rental of space, tuition and fees, post-doctoral training allowances,contractual items, and alterations andrenovations.

(c) Subtract (b*) from (a*). Theremainder is what the applicant canclaim as part of its matching costcontribution.

Justification: Enclose a copy of theindirect cost rate agreement. Applicantssubject to the limitation on the Federal

reimbursement of indirect costs fortraining grants should specify this.

Total—Line 6k. Enter the totalamounts of lines 6i and 6j.

Program Income—Line 7. Enter theestimated amount of income, if any,expected to be generated from thisproject. Do not add or subtract thisamount from the total project amount.

Justification: Describe the nature,source, and anticipated use of programincome in the Program NarrativeStatement.

Section C—Non-Federal Resources.This section summarizes the amounts ofnon-Federal resources that will beapplied to the grant. Enter thisinformation on line 12 entitled ‘‘Totals.’’In-kind contributions are defined in title45 of the Code of Federal Regulations,§§ 74.51 and 92.24, as ‘‘property orservices which benefit a grant-supportedproject or program and which arecontributed by non-Federal third partieswithout charge to the grantee, thesubgrantee, or a cost-type contractorunder the grant or subgrant.’’

Justification: Describe third party in-kind contributions, if included.

Section D—Forecasted Cash Needs.Not applicable.

Section E—Budget Estimate of FederalFunds Needed For Balance of theProject. This section should only becompleted if the total project periodexceeds 17 months.

Totals—Line 20. For projects that willhave more than one budget period, enterthe estimated required Federal funds forthe second budget period (months 13through 24) under column ‘‘(b) First.’’ Ifa third budget period will be necessary,enter the Federal funds needed formonths 25 through 36 under ‘‘(c)Second.’’ Columns (d) and (e) are notapplicable in most instances, since ACFfunding is almost always limited to athree-year maximum project period.They should remain blank.

Section F—Other Budget Information.Direct Charges—Line 21. Not

applicable.Indirect Charges—Line 22. Enter the

type of indirect rate (provisional,predetermined, final or fixed) that willbe in effect during the funding period,the estimated amount of the base towhich the rate is applied, and the totalindirect expense.

Remarks—Line 23. If the total projectperiod exceeds 17 months, you mustenter your proposed non-Federal shareof the project budget for each of theremaining years of the project.

3. Project Description

The Project Description is a veryimportant part of an application. Itshould be clear, concise, and address

the specific requirements mentionedunder the Area of Emphasis descriptionin Part IV. The narrative should alsoprovide information concerning how theapplication meets the evaluationcriteria, using the following headings:

(a) Objectives and Need forAssistance;

(b) Results and Benefits Expected;(c) Approach; and(d) Organization Profile.The specific information to be

included under each of these headingsis described in Section G of Part III,General Instructions for the UniformProject Description.

The narrative should be typed double-spaced on a single-side of an 81⁄2″ x 11″plain white paper, with 1″ margins onall sides, using black print no smallerthan 12 pitch or 12 point size. All pagesof the narrative (including charts,references/footnotes, tables, maps,exhibits, etc.) must be sequentiallynumbered, beginning with ‘‘Objectivesand Need for Assistance’’ as pagenumber one. Applicants should notsubmit reproductions of larger sizepaper, reduced to meet the sizerequirement.

The length of the application,including the application forms and allattachments, should not exceed 60pages. This will be strictly enforced. Apage is a single side of an 81⁄2″ x 11″sheet of paper. Applicants are requestednot to send pamphlets, brochures orother printed material along with theirapplication as these pose xeroxingdifficulties. These materials, ifsubmitted, will not be included in thereview process if they exceed the 60-page limit. Each page of the applicationwill be counted to determine the totallength.

4. Part V—Assurances/CertificationsApplicants are required to file an SF

424B, Assurances—Non-ConstructionPrograms and the CertificationRegarding Lobbying. Both must besigned and returned with theapplication. Applicants must alsoprovide certifications regarding: (1)Drug-Free Workplace Requirements; and(2) Debarment and OtherResponsibilities. These twocertifications are self-explanatory.Copies of these assurances/certificationsare reprinted at the end of thisannouncement and should bereproduced, as necessary. A dulyauthorized representative of theapplicant organization must certify thatthe applicant is in compliance withthese assurances/certifications. Asignature on the SF 424 indicatescompliance with the Drug FreeWorkplace Requirements, and



Debarment and Other Responsibilitiescertifications, and need not be mailedback with the application.

In addition, applicants are requiredunder section 162(c)(3) of the Act toprovide assurances that the humanrights of all individuals withdevelopmental disabilities (especiallythose individuals without familialprotection) who will receive servicesunder projects assisted under Part E willbe protected consistent with section 110(relating to the rights of individualswith developmental disabilities). Eachapplication must include a statementproviding this assurance.

For research projects in which humansubjects may be at risk, a Protection ofHuman Subjects Assurance may berequired. If there is a question regardingthe applicability of this assurance,contact the Office for Research Risks ofthe National Institutes of Health at (301)496–7041.

E. Checklist for a Complete Application

The checklist below is for your use toensure that your application packagehas been properly prepared.—One original, signed and dated

application, plus two copies.Applications for different Area ofEmphasis are packaged separately;

—Application is from an organizationwhich is eligible under the eligibilityrequirements defined in the PriorityArea description (screeningrequirement);

—Application length does not exceed 60pages, unless otherwise specified inthe Priority Area description.A complete application consists of the

following items in this order:—Application for Federal Assistance

(SF 424, REV 4–88);—A completed SPOC certification with

the date of SPOC contact entered inline 16, page 1 of the SF 424 ifapplicable.

—Budget Information—Non-Construction Programs (SF 424A, REV4–88);

—Budget justification for Section B—Budget Categories;

—Table of Contents;—Letter from the Internal Revenue

Service, etc. to prove non-profitstatus, if necessary;

—Copy of the applicant’s approvedindirect cost rate agreement, ifappropriate;

—Project Description (See Part III,Section C);

—Any appendices/attachments;—Assurances—Non-Construction

Programs (Standard Form 424B, REV4–88);

—Certification Regarding Lobbying; and

—Certification of Protection of HumanSubjects, if necessary.

—Certification of the Pro-Children Actof 1994; signature on the applicationrepresents certification.

F. The Application Package

Each application package mustinclude an original and two copies ofthe complete application. Each copyshould be stapled securely (front andback if necessary) in the upper left-handcorner. All pages of the narrative(including charts, tables, maps, exhibits,etc.) must be sequentially numbered,beginning with page one. In order tofacilitate handling, please do not usecovers, binders or tabs. Do not includeextraneous materials as attachments,such as agency promotion brochures,slides, tapes, film clips, minutes ofmeetings, survey instruments or articlesof incorporation.

G. Paper Reduction Act of 1995 (Pub. L.104–13)

The Uniform Project Descriptioninformation collection within thisannouncement is approved under theUniform Project Description (0970–0139), Expiration Date 12/31/2003.

Public reporting burden for thiscollection of information is estimated toaverage 10 hours per response,including the time for reviewinginstructions, gathering and maintainingthe data needed, and reviewing thecollection of information.

An agency may not conduct orsponsor, and a person is not required torespond to, a collection of informationunless it displays a currently valid OMBcontrol number.(Federal Catalog of Domestic AssistanceNumber 93.631 Developmental Disabilities—Projects of National Significance)

Dated: May 4, 2001.Sue Swenson,Commissioner, Administration onDevelopmental Disabilities.[FR Doc. 01–11762 Filed 5–9–01; 8:45 am]BILLING CODE 4184–01–P


Food and Drug Administration

[Docket No. 99F–5522]

Food Irradiation Coalition c/o NationalFood Processors Association; Filing ofFood Additive Petition; Amendment

AGENCY: Food and Drug Administration,HHS.ACTION: Notice.

SUMMARY: The Food and DrugAdministration (FDA) is amending thefiling notice for a food additive petitionfiled by the National Food ProcessorsAssociation (NFPA) on behalf of TheFood Irradiation Coalition, to providefor the safe use of ionizing radiation forcontrol of food-borne pathogens, andextension of shelf-life, in a variety ofhuman foods up to a maximumirradiation dosage of 4.5 kilograys (kGy)for non-frozen and non-dryFOR FURTHER INFORMATION CONTACT:Lane A. Highbarger, Center for FoodSafety and Applied Nutrition (HFS–206), Food and Drug Administration,200 C St. SW., Washington, DC 20204,202–418–3032.SUPPLEMENTARY INFORMATION: In a noticepublished in the Federal Register ofJanuary 5, 2000 (65 FR 493), FDAannounced that a food additive petition(FAP 9M4697) had been filed by theNFPA on behalf of The Food IrradiationCoalition, 1350 I St. NW., suite 300,Washington, DC 20005, proposing thatthe food additive regulations in part 179Irradiation in the Production, Processingand Handling of Food (21 CFR part 179)be amended to provide for the safe useof ionizing radiation for control of food-borne pathogens, and extension of shelf-life, in a variety of human foods up toa maximum irradiation dosage of 4.5kGy for non-frozen and non-dryproducts, and 10.0 kGy for frozen or dryproducts, including: (1) Pre-processedmeat and poultry; (2) both raw and pre-processed vegetables, fruits, and otheragricultural products of plant origin; (3)certain multi-ingredient food products.The notice stated that the petition doesnot cover products composed in wholeor in part of raw meat, poultry, or fishnor does it cover ‘‘ready-to-eat’’ fishproducts or ingredients made from fish.

Subsequent to the publication of thefiling notice, FDA learned fromdiscussions with NFPA that thepetitioner intended to include in thescope of the petition certain multi-ingredient products that containuncooked meat or poultry. In particular,the petitioner noted a clarifying letter,dated October 18, 1999, that it hadsubmitted prior to FDA’s filing thepetition, that mentioned certain foods,such as country hams and dry and semi-dry sausages, as examples of foodsintended to be within the scope of thepetition. In preparing the filing notice,FDA did not recognize that theseproducts are uncooked and, thus,mistakenly excluded such products byvirtue of the exclusion for foodcontaining raw meat or poultry. Thepetitioner recently informed FDA thatthe January, 2000, filing notice would



appear to restrict the scope of thepetition and that it was (and is) thepetitioner’s intent that multi-ingredientmeat products (whether containingcooked or uncooked meat or poultry) beincluded in the scope of the pendingpetition.

Therefore, FDA is amending the filingnotice of January 5, 2000, to indicatethat the petitioner has requested that thefood additive regulations be amended topermit the irradiation of multi-ingredient foods containing uncookedmeat or poultry.

The agency has determined under 21CFR 25.32(i) that this action is of a typethat does not individually orcumulatively have a significant effect onthe human environment. Therefore,neither an environmental assessmentnor an environmental impact statementis required.

Dated: April 20, 2001.Alan M. Rulis,Director, Office of Premarket Approval,Center for Food Safety and Applied Nutrition.[FR Doc. 01–11733 Filed 5–9–01; 8:45 am]BILLING CODE 4160–01–S


Health Care Financing Administration

[Document Identifier: HCFA–379]


AGENCY: Health Care FinancingAdministration, HHS.

In compliance with the requirementof section 3506(c)(2)(A) of thePaperwork Reduction Act of 1995, theHealth Care Financing Administration(HCFA), Department of Health andHuman Services, is publishing thefollowing summary of proposedcollections for public comment.Interested persons are invited to sendcomments regarding this burdenestimate or any other aspect of thiscollection of information, including anyof the following subjects: (1) Thenecessity and utility of the proposedinformation collection for the properperformance of the agency’s functions;(2) the accuracy of the estimatedburden; (3) ways to enhance the quality,utility, and clarity of the information tobe collected; and (4) the use ofautomated collection techniques orother forms of information technology tominimize the information collectionburden.

Type of Information CollectionRequest: Extension of a currentlyapproved collection;

Title of Information Collection: TheFinancial Statement of Debtor andSupporting Regulations in 42 CFR,Section 405.376;

Form No.: HCFA–379 (OMB# 0938–0270);

Use: This form is used to collectfinancial information which is neededto evaluate requests from physicians/suppliers to pay indebtedness under anextended repayment schedule, or tocompromise a debt less than the fullamount.;

Frequency: Other: As needed;Affected Public: Business or other for-

profit, and Individuals or Households;Number of Respondents: 500;Total Annual Responses: 500;Total Annual Hours: 1,000.To obtain copies of the supporting

statement and any related forms for theproposed paperwork collectionsreferenced above, access HCFA’s WebSite address at http://www.hcfa.gov/regs/prdact95.htm, or E-mail yourrequest, including your address, phonenumber, OMB number, and HCFAdocument identifier, [email protected], or call the ReportsClearance Office on (410) 786–1326.Written comments andrecommendations for the proposedinformation collections must be mailedwithin 60 days of this notice directly tothe HCFA Paperwork Clearance Officerdesignated at the following address:HCFA, Office of Information Services,Security and Standards Group, Divisionof HCFA Enterprise Standards,Attention: Dawn Willinghan, HCFA–379, Room N2–14–26, 7500 SecurityBoulevard, Baltimore, Maryland 21244–1850.

Dated: May 2, 2001.John P. Burke III,HCFA Reports Clearance Officer, HCFA Officeof Information Services, Security andStandards Group, Division of HCFAEnterprise Standards.[FR Doc. 01–11735 Filed 5–9–01; 8:45 am]BILLING CODE 4120–03–P



[Document Identifier: HCFA–R–142]



In compliance with the requirementof section 3506(c)(2)(A) of thePaperwork Reduction Act of 1995, theHealth Care Financing Administration

(HCFA), Department of Health andHuman Services, is publishing thefollowing summary of proposedcollections for public comment.Interested persons are invited to sendcomments regarding this burdenestimate or any other aspect of thiscollection of information, including anyof the following subjects: (1) Thenecessity and utility of the proposedinformation collection for the properperformance of the agency’s functions;(2) the accuracy of the estimatedburden; (3) ways to enhance the quality,utility, and clarity of the information tobe collected; and (4) the use ofautomated collection techniques orother forms of information technology tominimize the information collectionburden.

Type of Information CollectionRequest: Extension of a currentlyapproved collection; Title ofInformation Collection: InformationCollection Requirements Contained inBPD–393, Examination and Treatmentfor Emergency Medical Conditions andWomen in Labor and HCFA–1005–IFC,PPS for Hospital Outpatient Servicesand Supporting Regulations Containedin 42 CFR 488.18, 489.20 and 489.24;Document No.: HCFA–R–142 (OMB#0938–0667); Use: The InformationCollection Requirements contained inBPD–393, Examination and Treatmentfor Emergency Medical Conditions andWomen in Labor and HCFA–1005–IFC,contains requirements for hospitals toprevent them from inappropriatelytransferring individuals with emergencymedical conditions, as mandated byCongress. HCFA will use thisinformation to help assure compliancewith this mandate and protect thepublic. This information is notcontained elsewhere in regulations.Frequency: On occasion; AffectedPublic: Individuals or Households, Not-for-profit institutions, FederalGovernment, and State, Local or TribalGovernment; Number of Respondents:5,600; Total Annual Responses: 5,600;Total Annual Hours Requested: 1.

It should be noted, that based onindustry input and HCFA analysis, theapplicability and burden associatedwith the information collectionrequirements (ICR) captured in thissubmission have been adjusted toproperly reflect the degree of burdenassociated with this collection. Inparticular, the ICRs captured in thissubmission have been determined to beeither exempt or the burden has beendeemed usual and customary inaccordance with the 1995 PRA. In orderto comply and properly reflect the Act,HCFA assigned a token one-hour ofburden for this submission.



To obtain copies of the supportingstatement and any related forms for theproposed paperwork collectionsreferenced above, access HCFA’s WebSite address at http://www.hcfa.gov/regs/prdact95.htm, or E-mail yourrequest, including your address, phonenumber, OMB number, and HCFAdocument identifier, [email protected], or call the ReportsClearance Office on (410) 786–1326.Written comments andrecommendations for the proposedinformation collections must be mailedwithin 60 days of this notice directly tothe HCFA Paperwork Clearance Officerdesignated at the following address:HCFA, Office of Information Services,Security and Standards Group, Divisionof HCFA Enterprise Standards,Attention: Dawn Willinghan, HCFA–R–142, Room N2–14–26, 7500 SecurityBoulevard, Baltimore, Maryland 21244–1850.

Dated: May 1, 2001.John P. Burke III,HCFA Reports Clearance Officer, HCFA Officeof Information Services, Security andStandards Group, Division of HCFAEnterprise Standards.[FR Doc. 01–11737 Filed 5–9–01; 8:45 am]BILLING CODE 4120–03–P



[Document Identifier: HCFA–R–0299]

Agency Information CollectionActivities: Submission for OMBReview; Comment Request


In compliance with the requirementof section 3506(c)(2)(A) of thePaperwork Reduction Act of 1995, theHealth Care Financing Administration(HCFA), Department of Health andHuman Services, is publishing thefollowing summary of proposedcollections for public comment.Interested persons are invited to sendcomments regarding this burdenestimate or any other aspect of thiscollection of information, including anyof the following subjects: (1) Thenecessity and utility of the proposedinformation collection for the properperformance of the agency’s functions;(2) the accuracy of the estimatedburden; (3) ways to enhance the quality,utility, and clarity of the information tobe collected; and (4) the use ofautomated collection techniques orother forms of information technology to

minimize the information collectionburden.

Type of Information CollectionRequest: Revision of a currentlyapproved collection; Title ofInformation Collection: A Project toDevelop an Outcome-Based ContinuousQuality Improvement System for PACE;Form No.: HCFA–R–0299 (OMB# 0938–0791); Use: The purpose of this projectis to develop an outcome-basedcontinuous quality improvement(OBCQI) system and corecomprehensive assessment data set forthe PACE program by (a) developingand testing a set of data items for coreoutcome and comprehensive assessment(COCOA), (b) testing risk adjustmentmethods so each site’s outcomes can beappropriately evaluated, (c) designingan OBCQI approach to improve qualityin a systematic, evolutionary manner,and (d) testing the usefulness of the dataitems for assessment and care planning.A three-phase, 20-month field test willresult in the refinement of the draftCOCOA data items and protocols asneeded. Findings from the project areintended to guide the possibleimplementation of a national approachfor OBCQI and core comprehensiveassessment for PACE; Frequency: Onoccasion; Affected Public: Not-for-profitinstitutions, Individuals or households;Number of Respondents: 8,298; TotalAnnual Responses: 93,970; TotalAnnual Hours: 21,692.04.

To obtain copies of the supportingstatement and any related forms for theproposed paperwork collectionsreferenced above, access HCFA’s WebSite address at http://www.hcfa.gov/regs/prdact95.htm, or E-mail yourrequest, including your address, phonenumber, OMB number, and HCFAdocument identifier, [email protected], or call the ReportsClearance Office on (410) 786–1326.Written comments andrecommendations for the proposedinformation collections must be mailedwithin 30 days of this notice directly tothe OMB desk officer: OMB HumanResources and Housing Branch,Attention: Allison Eydt, New ExecutiveOffice Building, Room 10235,Washington, DC 20503.

Date: April 23, 2001.

John P. Burke III,HCFA Reports Clearance Officer, HCFA Officeof Information Services, Security andStandards Group, Division of HCFAEnterprise Standards.[FR Doc. 01–11736 Filed 5–9–01; 8:45 am]








Type of Information CollectionRequest: New collection; Title ofInformation Collection: MedicareProgram Integrity Customer ServiceProject; Form No.: HCFA–10029 (OMB#0938–NEW); Use: Medicare’s IntegrityProgram seeks to improve customerservice provided to beneficiaries andproviders. The study’s purpose is toidentify baseline satisfaction withProgram Integrity efforts, to prioritizeimprovement areas, and to identifypotential service delivery changes thatcan be implemented by HCFA or itscontractors. Respondents includebeneficiaries whose billing questionswere transferred to Fraud, and providerswho have been through enrollment,medical review, or cost report audit;Frequency: Annually; Affected Public:Individuals or households, Business orother for-profit, Not-for-profitinstitutions; Number of Respondents:5,250; Total Annual Responses: 5,250;Total Annual Hours: 782. To obtaincopies of the supporting statement andany related forms for the proposedpaperwork collections referenced above,access HCFA’s Web Site address athttp://www.hcfa.gov/regs/prdact95.htm,or E-mail your request, including youraddress, phone number, OMB number,and HCFA document identifier, to



[email protected], or call the ReportsClearance Office on (410) 786–1326.Written comments andrecommendations for the proposedinformation collections must be mailedwithin 30 days of this notice directly tothe OMB desk officer: OMB HumanResources and Housing Branch,Attention: Allison Eydt, New ExecutiveOffice Building, Room 10235,Washington, D.C. 20503.

Dated: April 23, 2001.John P. Burke III,HCFA Reports Clearance Officer, HCFA Officeof Information Services, Security andStandards Group, Division of HCFAEnterprise Standards.[FR Doc. 01–11738 Filed 5–9–01; 8:45 am]BILLING CODE 4120–03–P




Emergency Clearance: PublicInformation Collection RequirementsSubmitted to the Office of Managementand Budget (OMB)



We are, however, requesting anemergency review of the informationcollections referenced below. Incompliance with the requirement ofsection 3506(c)(2)(A) of the PaperworkReduction Act of 1995, we havesubmitted to the Office of Managementand Budget (OMB) the followingrequirements for emergency review. Weare requesting an emergency reviewbecause the collection of this

information is needed before theexpiration of the normal time limitsunder OMB’s regulations at 5 CFR part1320. This is necessary to ensurecompliance with the Supreme Court’sdecision in Olmstead v. L.C., (119 S.Ct.2176 (1999) required States to providecommunity-based services for personswith disabilities who would otherwisereceive services in an institutionalsetting under certain circumstances. Wecannot reasonably comply with thenormal clearance procedures because ofthe potential for public harm: the fundsset aside for the grants would revert tothe general fund and States, togetherwith their disability and agingcommunities that have alreadyundertaken extensive planning effortsfor these grant opportunities, would besignificantly harmed.

HCFA is requesting OMB review andapproval of this collection by May 22,2001, with a 180-day approval period.Written comments andrecommendations will be accepted fromthe public if received by the individualsdesignated below by May 21, 2001.During this 180-day period, we willpublish a separate Federal Registernotice announcing the initiation of anextensive 60-day agency review andpublic comment period on theserequirements. We will submit therequirements for OMB review and anextension of this emergency approval.

Type of Information CollectionRequest: New collection; Title ofInformation Collection: Real ChoiceSystems Change Grants; NursingFacility Transition/Access HousingGrants; Community Personal AssistanceService and Supports Grants, NationalTechnical Assistance and LearningCollaborative Grants to Support SystemsChange for Community Living; FormNo.: HCFA–10037 (OMB# 0938–XXXX);Use: Information sought by CMSO/DEHPG is needed to award competitivegrants to States and other eligibleentities for the purposes of designingand implementing effective andenduring improvements in consumer-directed long term service and supportsystems; Frequency: Annually; AffectedPublic: State, local or tribal gov.;Number of Respondents: 76; TotalAnnual Responses: 76; Total AnnualHours: 7600.

We have submitted a copy of thisnotice to OMB for its review of theseinformation collections. A notice will bepublished in the Federal Register whenapproval is obtained.

To obtain copies of the supportingstatement and any related forms for theproposed paperwork collectionsreferenced above, access HCFA’s WebSite address at http://www.hcfa.gov/

regs/prdact95.htm, or E-mail yourrequest, including your address, phonenumber, OMB number, and HCFAdocument identifier, [email protected], or call the ReportsClearance Office on (410) 786–1326.

Interested persons are invited to sendcomments regarding the burden or anyother aspect of these collections ofinformation requirements. However, asnoted above, comments on theseinformation collection andrecordkeeping requirements must bemailed and/or faxed to the designeesreferenced below, by May 21, 2001:Health Care Financing Administration,

Office of Information Services,Security and Standards Group,Division of HCFA EnterpriseStandards, Room N2–14–26, 7500Security Boulevard, Baltimore, MD21244–1850. Fax Number: (410) 786–0262, Attn: Julie Brown HCFA–10037

and,Office of Information and Regulatory

Affairs, Office of Management andBudget, Room 10235, New ExecutiveOffice Building, Washington, DC20503, Fax Number: (202) 395–6974or (202) 395–5167, Attn: BrendaAguilar, HCFA Desk Officer.Dated: May 7, 2001.

Julie Brown,Acting HCFA Reports Clearance Officer,HCFA, Office of Information Services,Security and Standards Group, Division ofHCFA Enterprise Standards.[FR Doc. 01–11906 Filed 5–8–01; 1:31 pm]BILLING CODE 4120–03–P


Program Support Center


The Department of Health and HumanServices, Program Support Center (PSC),publishes a list of informationcollections it has submitted to the Officeof Management and Budget (OMB) forclearance in compliance with thePaperwork Reduction Act of 1995 (44U.S.C. Chapter 35) and 5 CFR 1320.5.The following information collectionwas recently submitted to OMB:

1. Application Packets for RealProperty for Public Health Purposes(Form Number: HHS 696)—Revision.

The Department of Health and HumanServices administers a program toconvey or lease surplus real property toStates and their political subdivisionsand instrumentalities, to tax-supportedinstitutions, and to nonprofit



institutions to be used for healthpurposes. State and local governmentsand nonprofit organizations use theseapplications to apply for excess/surplus,underutilized/unutilized and off-siteGovernment real property. Informationin the applications is used to determineeligibility to purchase, lease, or useproperty under the provisions of thesurplus property program. Theapplication instructions for thehomeless or public health purposes arebeing revised to clarify some of thequestions which will assist reviewers inmaking more informed determinations.No changes are being proposed for theenvironmental information form used toevaluate potential environmental effectsof a proposal as required by the NationalEnvironmental Policy Act of 1969.Respondents: State, local or tribalgovernments; not-for-profit institutions;Total Number of Respondents: 32 percalendar year; Number of Responses perRespondent: one response per request;Average Burden per Response: 200hours; Estimated Annual Burden: 6,400hours.

OMB Desk Officer: Allison Eydt.Copies of the information collection

package listed above can be obtained bycalling the PSC Reports ClearanceOfficer on (301) 443–1494. Writtencomments and recommendations for theproposed information collection shouldbe sent directly to the OMB desk officerdesignated above at the followingaddress: Human Resources and HousingBranch, Office of Management andBudget, New Executive Office Building,Room 10235, 725 17th Street NW.,Washington, DC 20503.

Comments may also be sent to IreneS. West, PSC Reports Clearance Officer,Room 17A18, Parklawn Building, 5600Fishers Lane, Rockville, MD 20857.Written comments should be receivedwithin 30 days of this notice.

Dated: May 1, 2001.Curtis L. Coy,Director, Program Support Center.[FR Doc. 01–11734 Filed 5–9–01; 8:45 am]BILLING CODE 4168–17–M

DEPARTMENT OF HOUSING ANDURBAN DEVELOPMENT

[Docket No. FR–4572–D–18]

Order of Succession

AGENCY: Office of the Chief Officer, HUDACTION: Notice of Order of Succession.

SUMMARY: In this notice, the Chief ofStaff for the Department of Housing andUrban Development designates the

Order of Succession for the office ofChief Financial Officer.

EFFECTIVE DATES: May 3, 2001.

FOR FURTHER INFORMATION CONTACT:Maureen Harris, Administrative Officer,Office of the Chief Financial Officer,Department of Housing and UrbanDevelopment, Room 2104, 451 7thStreet, SW, Washington, DC 20410,(202) 708–0313. (This is not a toll-freenumber.) This number may be accessedvia TTY by calling the FederalInformation Relay Service at 1–800–8339 (toll-free).

SUPPLEMENTARY INFORMATION: The Chiefof Staff for the Department of Housingand Urban Development is issuing thisOrder of Succession of officialsauthorized to perform the functions andduties of the Office of the ChiefFinancial Officer when, by reason ofabsence, disability, or vacancy in office,the Chief Financial Officer is notavailable to exercise the powers orperform the duties of the office. ThisOrder of Succession is subject to theprovisions of the Vacancy Reform Act of1998, 5 USC 3345–3349d.

Accordingly, the Chief of Staffdesignates the following Order ofSuccession:

Section A. Order of Succession

Subject to the provisions of theVacancy Reform Act of 1998, during anyperiod when, by reason of absence,disability, or vacancy in office, the ChiefFinancial Officer is not available toexercise the powers or perform theduties of the Chief Financial Officer, thefollowing officials within the Office ofthe Chief Financial Officer are herebydesignated to exercise the powers andperform the duties of the Office:

(1) Senior Advisor to the ChiefFinancial Officer;

(2) Assistant Chief Financial Officerfor Budget.

These officials shall perform thefunctions and duties of the Office in theorder specified herein, and no officialshall serve unless all the other officials,whose position titles precede his/hers inthis order, are unable to act by reasonof absence, disability, or vacancy inoffice.

Section B. Authority Superseded

This Order of Succession supersedesthe Order of Succession for the Office ofthe Chief Financial Officer, published at65 FR 51016 (August 22, 2000).

Authority: Section 7(d), Department ofHousing and Urban Development Act, 42U.S.C. Sec. 3535(d)

Dated: May 3, 2001.Daniel R. Murphy,Chief of Staff, Department of Housing andUrban Development.[FR Doc. 01–11743 Filed 5–9–01; 8:45 am]BILLING CODE 4210–01–M


Fish and Wildlife Service

Notice of Permit Application and SafeHarbor Agreement Between the Fishand Wildlife Service and Caroline H.Paterson and Thomas W. Paterson

AGENCY: Fish and Wildlife Service,Interior.ACTION: Notice of availability and 30-daypublic comment period.

SUMMARY: Caroline H. and Thomas W.Paterson (Applicants) have applied tothe U.S. Fish and Wildlife Service(Service) for an incidental take permitpursuant to Section 10(a)(1)(A) of theEndangered Species Act (Act). TheApplicants have been assigned permitnumber TE–035920–0. The requestedpermit, which is for a period of 30 years,would authorize the take of thefollowing species: endangeredsouthwestern willow flycatcher andMexican gray wolf; threatened baldeagle, Mexican spotted owl, and loachminnow. The proposed take could occuras a result of conservation measuresimplemented on Spur Ranch, consistingof riparian restoration activities alongCenterfire Creek, including plantingnative vegetation; grade controlstructures in Centerfire Creek to controlerosion and downcutting; and uplandmanagement activities designed toimprove overall habitat health,including prescribed burning, selectivetimber harvesting, and controlledgrazing. Currently, none of the speciesmentioned above are known to occur onthe property. The Applicants incooperation with the Service haveprepared the Safe Harbor Agreement(SHA) to provide a conservation benefitto the species and allow for the take ofthese species. Based upon guidance inthe Service’s June 17, 1999, Final SafeHarbor Policy, if a SHA and associatedpermit are not expected to individuallyor cumulatively have a significantimpact on the quality of the humanenvironment or other natural resources,the Agreement/permit may becategorically excluded from undergoingNational Environmental Policy Actreview. The Spur Ranch SHA qualifiesas a ‘‘Low Effect’’ SHA, thus, this actionis a categorical exclusion. The ‘‘LowEffect’’ determination for the Spur



Ranch SHA is also available for publiccomment. This notice is providedpursuant to Section 10(c) of the Act andNational Environmental Policy Actregulations (40 CFR 1506.6).DATES: Written comments on theapplication should be received on orbefore June 11, 2001.ADDRESSES: Persons wishing to reviewthe application, SHA, and ‘‘Low Effect’’determination may obtain copies bywriting to the Regional Director, U.S.Fish and Wildlife Service, P.O. Box1306, Room 4102, Albuquerque, NewMexico 87103, or by contacting DeniseSmith, New Mexico Ecological ServicesField Office, 2105 Osuna Road,Albuquerque, New Mexico 87113 (505/346–2525). Documents relating to theapplication will be available for publicinspection by written request, byappointment only, during normalbusiness hours (8:00 to 4:30) at the U.S.Fish and Wildlife Service, New MexicoEcological Services Field Office,Albuquerque, New Mexico.

Written data or comments concerningthe application and SHA should besubmitted to the Field Supervisor, U.S.Fish and Wildlife Service, New MexicoEcological Services Field Office,Albuquerque, New Mexico, at the aboveaddress. Please refer to permit numberTE–035920–0 (Paterson) whensubmitting comments.FOR FURTHER INFORMATION CONTACT:Denise Smith at the above U.S. Fish andWildlife Service, New MexicoEcological Services Field Office,Albuquerque, New Mexico (505) 346–2525.SUPPLEMENTARY INFORMATION:

BackgroundCaroline H. and Thomas W. Paterson

(Applicants) plan to implementconservation measures on Spur Ranch,a 309 acre parcel of land northeast ofLuna, Catron County, New Mexico. Theconservation measures will improveriverine, riparian, and upland habitatthrough improving water quality,reducing sedimentation, andestablishment of native riparianvegetation. The SHA as currentlywritten is expected to provide a netconservation benefit to the five speciesfor which it is written. The SHA willprovide protection to the Applicantsagainst further regulation under theEndangered Species Act in the eventthat any of the covered species shouldoccupy the Patersons’ land as a result ofimplementation of the proposedconservation measures.

Section 9 of the Act prohibits the‘‘taking’’ of threatened or endangeredspecies. However, the Service, under

limited circumstances, may issuepermits to take threatened andendangered wildlife species incidentalto, and not the purpose of, otherwiselawful activities. Regulations governingpermits for endangered species are at 50CFR 17.22 and 50 CFR 17.22 forthreatened species.

Thomas L. Bauer,Acting Regional Director, Region 2,Albuquerque, New Mexico.[FR Doc. 01–11756 Filed 5–9–01; 8:45 am]BILLING CODE 4510–55–P


Bureau of Indian Affairs

Proposed Agency InformationCollection Activities; CommentRequest

AGENCY: Bureau of Indian Affairs,Interior.ACTION: Notice.

SUMMARY: This notice announces thatthe Information Collection Request forthe Housing Assistance Applicationrequires renewal. The proposedinformation collection requirement,with no appreciable changes, describedbelow will be submitted to the Office ofManagement and Budget (OMB) forreview after a public comment period,as required by the Paperwork ReductionAct of 1995. The Bureau is solicitingpublic comments on the subjectproposal.

DATES: Written comments must besubmitted on or before July 9, 2001.ADDRESSES: Interested parties areinvited to submit written commentsregarding this proposal. Commentsshould refer to the proposal by nameand/or OMB Control Number andshould be sent to June Henkel, Bureauof Indian Affairs, Department of theInterior, 1849 C Street, NW, MS–4660–MIB, Washington, DC 20240. E-mailshould be sent to [email protected]: (202) 208–2648. Telephone: (202)208–3667. (This is not a toll-freenumber.)

FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the information collectioninstructions should be directed to JuneHenkel, 202–208–3667.SUPPLEMENTARY INFORMATION:

I. Abstract

The information is needed to establishwhether an applicant is eligible toreceive services under the HIP and toestablish the priority order in which

eligible applicants may receive servicesunder the program.

II. Method of Collection

The housing regulations at 25 CFRpart 256 contain the program eligibilityand selection criteria (§§ 256.6, 256.8,256.9, 256.10, 256.14) whichprospective applicants seeking programservices must demonstrate that theymeet. Information collected fromapplicants under these regulationsprovides eligibility and selection dataused by the local servicing housingoffice to establish whether an applicantis eligible to receive services. The localservicing housing office may be a tribalhousing office under a Public Law 93–638, Indian Self-Determination contractor a Self-Governance annual fundingagreement, or the Bureau of IndianAffairs. Additionally, the data is used bythe Assistant Secretary—Indian Affairsto establish whether a request for waiverof a specific housing regulation is in thebest interest of the applicant and theFederal Government.

III. Data

(1) Title of the Collection ofInformation: Department of the Interior,Bureau of Indian Affairs, HousingAssistance Application.

OMB Number: 1076–0084.Expiration Date: September 30, 2001.Type of Review: Renewal of a

currently approved informationcollection.

(2) Summary of the Collection ofInformation: The collection ofinformation provides pertinent dataconcerning an applicant’s eligibility toreceive services under the HousingImprovement Program and includes:

A. Applicant Information including:Name, Current Address, TelephoneNumber, Date of Birth, Tribe, RollNumber, Marital Status, Name ofSpouse, Date of Birth (of spouse), Tribe(of spouse), and Roll Number (ofSpouse).

B. Family Information including:Name, Date of Birth, Relationship toApplicant, and Tribe/Roll Number.

C. Income Information: Earned andUnearned Income.

D. Housing Information including:Location of the house to be repaired,constructed or purchased; Descriptionof housing assistance for whichapplying; Knowledge of receipt of priorHousing Improvement Programassistance, amount, to whom and when;Ownership or rental; Availability ofelectricity and name of electriccompany; Type of sewer system; Watersource; Number of bedrooms; Size ofhouse; and, Bathroom facilities.



E. Land Information including: Landowner; Legal status of land; or Type ofinterest in land.

F. General Information including:Prior receipt of services under theHousing Improvement Program anddescription of such; Ownership of otherhousing and description of such,Identification of Housing and UrbanDevelopment (HUD) funded house andcurrent status of project; Identificationof other sources of housing assistancefor which the applicant has applied andbeen denied assistance if applying for anew housing unit or purchase of anexisting standard unit; and advisementand description of any severe healthproblem, handicap or permanentdisability.

G. Applicant Certification including:Signature of Applicant and Date, andSignature of Spouse and Date.

(3) Description of the need for theinformation and proposed use of theinformation: Submission of thisinformation is required in order toreceive services under the HousingImprovement Program. The informationis collected to determine applicanteligibility for services and applicantpriority order to receive services underthe program.

(4) Description of likely respondents,including the estimated number of likelyrespondents, and proposed frequency ofresponse to the collection ofinformation:

Description of likely respondents:Individual members of Indian tribeswho are living on or near a tribally, orby law, defined service area.

Estimated number of respondents:3,500.

Proposed frequency of response:Annually or less frequently, dependingon length of waiting list, fundingavailability and dynamics of servicepopulation.

(5) Estimate of total annual reportingand record keeping burden that willresult from the collection:

Estimated time per application: Thereporting burden for this applicant isestimated to average 1⁄2 hour perresponse, including the time forreviewing the instructions, gatheringand maintaining the data, andcompleting and reviewing the form.

Estimated Total Annual ReportingBurden Hours: 1,750 hours.

Estimated record keeping burden perapplication: The record keeping burdenfor tribes submitting eligible applicantdata and not having or receiving fundsto administer the program is estimatedto average 1⁄2 hour per application,including the time for reviewing theapplication, determining applicant

eligibility and priority ranking andsummarizing data for submission.

Estimated Total Record KeepingBurden: 156 hours.

Estimated Total Record KeepingCosts: $2,431 (117.5 hours × $20.69 perhour).

IV. Request for CommentsThe Department of the Interior invites

comment on:(a) Whether the collection of

information is necessary for the properperformance of the functions of theagency, including whether theinformation will have practical utility;

(b) The accuracy of the agency’sestimate of the burden (including hoursand cost) of the proposed collection ofinformation, including the validity ofthe methodology and assumptions used;

(c) Ways to enhance the quality,utility, and clarity of the information tobe collected; and,

(d) Ways to minimize the burden ofthe collection of information on thosewho are to respond, including throughthe use of appropriate automated,electronic, mechanical, or othercollection techniques or other forms ofinformation technology.

Burden means the total time, effort, orfinancial resources expended by personsto generate, maintain, retain, or discloseor provide information to or for aFederal agency. This includes the timeneeded to review instructions; todevelop, acquire, install and utilizetechnology and systems for the purposeof collecting, validating, and verifyinginformation; to train personnel and to beable to respond to a collection ofinformation, to search data sources, tocomplete and review the collection ofinformation; and, to transmit orotherwise disclose information.

Comments submitted in response tothis notice will be summarized and/orincluded in the request for OMBapproval of this information collection;they will also become a matter of publicrecord. All written comments will beavailable for public inspection in Room4660 of the Main Interior Building, 1849C Street, NW, Washington, DC, from9:00 a.m. until 4:00 p.m., Mondaythrough Friday, excluding legalholidays. An agency may not conduct orsponsor, and a person is not required torespond to a collection of informationunless it displays a currently validOffice of Management and Budgetcontrol number.

Dated: April 30, 2001.James H. McDivitt,Deputy Assistant Secretary—Indian Affairs(Management).[FR Doc. 01–11752 Filed 5–9–01; 8:45 am]BILLING CODE 4310–02–P


Bureau of Land Management

[CO–930; COC–48469]

Public Land Order No. 7485; Extensionof Public Land Order No. 6846; CO

AGENCY: Bureau of Land Management,Interior.ACTION: Public land order.

SUMMARY: This order extends PublicLand Order No. 6846 for an additional10-year period. This extension isnecessary to continue the protection ofthe Wild and Scenic River values in theSouth Platte River. These lands havebeen and will remain open to mineralleasing.

EFFECTIVE DATE: April 12, 2001.FOR FURTHER INFORMATION CONTACT:Doris E. Chelius, BLM Colorado StateOffice, 2850 Youngfield Street,Lakewood, Colorado 80215–7093, 303–239–3706.

By virtue of the authority vested inthe Secretary of the Interior by Section204 of the Federal Land Policy andManagement Act of 1976, 43 U.S.C.1714 (1994), it is ordered as follows:

1. Public Land Order No. 6846, whichwithdrew National Forest System landsto protect the Wild and Scenic Rivervalues in a 9-mile segment of the SouthPlatte River corridor, is hereby extendedfor an additional 10-year periodfollowing its date of expiration.

2. This withdrawal will expire 10years from the effective date of thisorder unless, as a result of a reviewconducted prior to the expiration datepursuant to Section 204(f) of the FederalLand Policy and Management Act of1976, 43 U.S.C. 1714(f) (1994), theSecretary determines that thewithdrawal shall be extended.

Dated: April 12, 2001.Gale A. Norton,Secretary of the Interior.[FR Doc. 01–11739 Filed 5–9–01; 8:45 am]BILLING CODE 3410–11–P

INTERNATIONAL TRADECOMMISSION

Investigations Nos. 731–TA–726, 727,and 729 (Review)

Polyvinyl Alcohol From China, Japan,and Taiwan

AGENCY: United States InternationalTrade Commission.ACTION: Termination of five-yearreviews.



SUMMARY: The subject five-year reviewswere initiated in April 2001 todetermine whether revocation of theantidumping duty orders on polyvinylalcohol from China, Japan, and Taiwanwould be likely to lead to continuationor recurrence of dumping and ofmaterial injury to a domestic industry.On May 3, 2001, the Department ofCommerce published notice that it wasrevoking the orders ‘‘[b]ecause nodomestic interested party responded tothe sunset review notice of initiation bythe applicable deadline’’ (66 FR 22145).Accordingly, pursuant to section 751(c)of the Tariff Act of 1930 (19 U.S.C.§ 1675(c)), the subject reviews areterminated.

EFFECTIVE DATE: May 3, 2001.FOR FURTHER INFORMATION CONTACT: VeraLibeau (202–205–3176), Office ofInvestigations, U.S. International TradeCommission, 500 E Street SW,Washington, DC 20436. Hearing-impaired individuals are advised thatinformation on this matter can beobtained by contacting theCommission’s TDD terminal on 202–205–1810. Persons with mobilityimpairments who will need specialassistance in gaining access to theCommission should contact the Officeof the Secretary at 202–205–2000.General information concerning theCommission may also be obtained byaccessing its internet server (http://www.usitc.gov). The public record forthis investigation may be viewed on theCommission’s electronic docket (EDIS-ON-LINE) at http://dockets.usitc.gov/eol/public

Authority: These reviews are beingterminated under authority of title VII of theTariff Act of 1930; this notice is publishedpursuant to section 207.69 of theCommission’s rules (19 CFR 207.69).

Issued: May 4, 2001.By order of the Commission.

Donna R. Koehnke,Secretary.[FR Doc. 01–11845 Filed 5–9–01; 8:45 am]BILLING CODE 7020–02–P

INTERNATIONAL TRADECOMMISSION

[Investigations Nos. 701–TA–404–408(Final) and 731–TA–898–908 (Final)]

Hot-Rolled Steel Products FromArgentina, China, India, Indonesia,Kazakhstan, Netherlands, Romania,South Africa, Taiwan, Thailand, andUkraine

AGENCY: United States InternationalTrade Commission.

ACTION: Scheduling of the final phase ofcountervailing duty and antidumpinginvestigations.

SUMMARY: The Commission hereby givesnotice of the scheduling of the finalphase of countervailing dutyinvestigations Nos. 701–TA–404–408(Final) under section 705(b) of the TariffAct of 1930 (19 U.S.C. § 1671d(b)) (theAct) to determine whether an industryin the United States is materiallyinjured or threatened with materialinjury, or the establishment of anindustry in the United States ismaterially retarded, by reason ofsubsidized imports from Argentina,India, Indonesia, South Africa, andThailand of hot-rolled steel products,provided for in headings 7208, 7210,7211, 7212, 7225, and 7226 of theHarmonized Tariff Schedule of theUnited States. Notice is also herebygiven of the scheduling of the finalphase of antidumping investigationsNos. 731–TA–898–908 (Final) undersection 735(b) of the Act (19 U.S.C.§ 1673d(b)) to determine whether anindustry in the United States ismaterially injured or threatened withmaterial injury, or the establishment ofan industry in the United States ismaterially retarded, by reason of less-than-fair-value imports from Argentina,China, India, Indonesia, Kazakhstan,Netherlands, Romania, South Africa,Taiwan, Thailand, and Ukraine of hot-rolled steel products.

For further information concerningthe conduct of this phase of theinvestigations, hearing procedures, andrules of general application, consult theCommission’s Rules of Practice andProcedure, part 201, subparts A throughE (19 CFR part 201), and part 207,subparts A and C (19 CFR part 207).EFFECTIVE DATE: April 30, 2001.FOR FURTHER INFORMATION CONTACT:Mary Messer (202–205–3193), Office ofInvestigations, U.S. International TradeCommission, 500 E Street SW.,Washington, DC 20436. Hearing-impaired persons can obtaininformation on this matter by contactingthe Commission’s TDD terminal on 202–205–1810. Persons with mobilityimpairments who will need specialassistance in gaining access to theCommission should contact the Officeof the Secretary at 202–205–2000.General information concerning theCommission may also be obtained byaccessing its internet server (http://www.usitc.gov). The public record forthese investigations may be viewed onthe Commission’s electronic docket(EDIS–ON–LINE) at http://dockets.usitc.gov/eol/public.


BackgroundThe final phase of these investigations

is being scheduled as a result ofaffirmative preliminary determinationsby the Department of Commerce thatcertain benefits which constitutesubsidies within the meaning of section703 of the Act (19 U.S.C. 1671b) arebeing provided to manufacturers,producers, or exporters in Argentina,India, Indonesia, South Africa, andThailand of hot-rolled steel products,and that such products from Argentina,China, India, Indonesia, Kazakhstan,Netherlands, Romania, South Africa,Taiwan, Thailand, and Ukraine arebeing sold in the United States at lessthan fair value within the meaning ofsection 733 of the Act (19 U.S.C. 1673b).The investigations were requested in apetition filed on November 13, 2000, byBethlehem Steel Corp. (Bethlehem, PA);Gallatin Steel Corp. (Ghent, KY); IPSCOSteel, Inc. (Lisle, IL); LTV Steel Co., Inc.(Cleveland, OH); National Steel Corp.(Mishawaka, IN); Nucor Corp.(Darlington, SC); Steel Dynamics, Inc.(Butler, IN); U.S. Steel Group (a unit ofUSX Corp.) (Pittsburgh, PA); WeirtonSteel Corp. (Weirton, WV); and theIndependent Steel Workers Union, alabor union representing the organizedworkers at Weirton Steel Corp.

Participation in the Investigations andPublic Service List

Persons, including industrial users ofthe subject merchandise and, if themerchandise is sold at the retail level,representative consumer organizations,wishing to participate in the final phaseof these investigations as parties mustfile an entry of appearance with theSecretary to the Commission, asprovided in section 201.11 of theCommission’s rules, no later than 21days prior to the hearing date specifiedin this notice. A party that filed a noticeof appearance during the preliminaryphase of the investigations need not filean additional notice of appearanceduring this final phase. The Secretarywill maintain a public service listcontaining the names and addresses ofall persons, or their representatives,who are parties to the investigations.

Limited Disclosure of BusinessProprietary Information (BPI) Under anAdministrative Protective Order (APO)and BPI Service List

Pursuant to section 207.7(a) of theCommission’s rules, the Secretary willmake BPI gathered in the final phase ofthese investigations available toauthorized applicants under the APOissued in the investigations, provided



that the application is made no laterthan 21 days prior to the hearing datespecified in this notice. Authorizedapplicants must represent interestedparties, as defined by 19 U.S.C. 1677(9),who are parties to the investigations. Aparty granted access to BPI in thepreliminary phase of the investigationsneed not reapply for such access. Aseparate service list will be maintainedby the Secretary for those partiesauthorized to receive BPI under theAPO.

Staff ReportThe prehearing staff report in the final

phase of these investigations will beplaced in the nonpublic record on July5, 2001, and a public version will beissued thereafter, pursuant to section207.22 of the Commission’s rules.

HearingThe Commission will hold a hearing

in connection with the final phase ofthese investigations beginning at 9:30a.m. on July 17, 2001, at the U.S.International Trade CommissionBuilding. Requests to appear at thehearing should be filed in writing withthe Secretary to the Commission on orbefore July 11, 2001. A nonparty whohas testimony that may aid theCommission’s deliberations may requestpermission to present a short statementat the hearing. All parties andnonparties desiring to appear at thehearing and make oral presentationsshould attend a prehearing conferenceto be held at 9:30 a.m. on July 13, 2001,at the U.S. International TradeCommission Building. Oral testimonyand written materials to be submitted atthe public hearing are governed bysections 201.6(b)(2), 201.13(f), and207.24 of the Commission’s rules.Parties must submit any request topresent a portion of their hearingtestimony in camera no later than 7days prior to the date of the hearing.

Written SubmissionsEach party who is an interested party

shall submit a prehearing brief to theCommission. Prehearing briefs mustconform with the provisions of section207.23 of the Commission’s rules; thedeadline for filing is July 11, 2001.Parties may also file written testimonyin connection with their presentation atthe hearing, as provided in section207.24 of the Commission’s rules, andposthearing briefs, which must conformwith the provisions of section 207.25 ofthe Commission’s rules. The deadlinefor filing posthearing briefs is July 24,2001; witness testimony must be filedno later than three days before thehearing. In addition, any person who

has not entered an appearance as a partyto the investigations may submit awritten statement of informationpertinent to the subject of theinvestigations on or before July 24,2001. On August 13, 2001, theCommission will make available toparties all information on which theyhave not had an opportunity tocomment. Parties may submit finalcomments on this information on orbefore August 15, 2001, but such finalcomments must not contain new factualinformation and must otherwise complywith section 207.30 of the Commission’srules. All written submissions mustconform with the provisions of section201.8 of the Commission’s rules; anysubmissions that contain BPI must alsoconform with the requirements ofsections 201.6, 207.3, and 207.7 of theCommission’s rules. The Commission’srules do not authorize filing ofsubmissions with the Secretary byfacsimile or electronic means.

In accordance with sections 201.16(c)and 207.3 of the Commission’s rules,each document filed by a party to theinvestigations must be served on allother parties to the investigations (asidentified by either the public or BPIservice list), and a certificate of servicemust be timely filed. The Secretary willnot accept a document for filing withouta certificate of service.

Authority: These investigations are beingconducted under authority of title VII of theTariff Act of 1930; this notice is publishedpursuant to section 207.21 of theCommission’s rules.

By order of the Commission.Issued: May 7, 2001.

Donna R. Koehnke,Secretary.[FR Doc. 01–11846 Filed 5–9–01; 8:45 am]BILLING CODE 7020–02–P

DEPARTMENT OF LABOR

Employment and TrainingAdministration

ETA–5130 Benefit Appeals Report;Comment Request

ACTION: Notice.

SUMMARY: The Department of Labor, aspart of its continuing effort to reducepaperwork and respondent burden,conducts a preclearance consultationprogram to provide the general publicand Federal agencies with anopportunity to comment on proposedand/or continuing collections ofinformation in accordance with thePaperwork Reduction Act of 1995 [44U.S.C. 3506(c)(2)(A)]. This program

helps to ensure that requested data canbe provided in the desired format,reporting burden (time and financialresources) is minimized, collectioninstruments are clearly understood, andthe impact of collection requirements onrespondents can be properly assessed.Currently, the Employment andTraining Administration is solicitingcomments concerning the proposedextension collection of the ETA–5130Benefit Appeals Report. A copy of theproposed information collection requestcan be obtained by contacting the officelisted below in the addressee section ofthis notice.DATES: Written comments must besubmitted to the office listed in theaddressee section below on or beforeJuly 9, 2001.ADDRESSES: Jack Bright, Office ofWorkforce Security, Employment andTraining Administration, U.S.Department of Labor, Room S–4516, 200Constitution Avenue, NW., Washington,DC 20210, telephone number (202) 693–3214 (this is not a toll-free number).SUPPLEMENTARY INFORMATION:

I. Background

The ETA–5130, Benefit AppealsReport, contains information on thenumber of unemployment insuranceappeals and the resultant decisionsclassified by program, appeals level,cases filed and disposed of (workflow),and decisions by level, appellant andissue. The data on this report is used byboth the Regional and National OfficeUnemployment Insurance staff tomonitor the benefit appeals process inthe State Employment SecurityAgencies (SESAs) and to develop anyneeded plans for remedial action. Thedata is also needed for workloadbudgeting and to determineadministrative funding. If thisinformation were not available,developing problems might not bediscovered early enough to prevent thesolutions from being extremely timeconsuming and costly.

Nearly all States now collect, storeand report this data with automatedsystems. Consequently, the burdenhours and burden costs for operationand maintenance have been reducedaccordingly.

II. Review Focus

The Department of Labor isparticularly interested in commentswhich:

• Evaluate whether the proposedcollection of information is necessaryfor the proper performance of thefunctions of the agency, including



whether the information will havepractical utility;

• Evaluate the accuracy of theagency’s estimate of the burden of theproposed collection of information,including the validity of themethodology and assumptions used;

• Enhance the quality, utility, andclarity of the information to becollected; and

• Minimize the burden of thecollection of information on those whoare to respond, including through theuse of appropriate automated,electronic, mechanical, or othertechnological collection techniques orother forms of information technology,e.g., permitting electronic submissionsof responses.

III. Current ActionsContinued collection of the ETA–5130

data will provide for continuousmonitoring of the SESAs appellateprocesses and needed data for thebudgeting and administrative fundingactivities. The data is collected monthlyso that developing backlogs ofundecided appeals can be detected asearly as possible.

Type of Review: Extension.Agency: Employment and Training

Administration.Title: Benefit Appeals Report.OMB Number: 1205–0172.Agency Number: ETA–5130.Affected Public: State Governments.Total Respondents: 53.Frequency: Monthly.Total Responses: 636.Average Time per Response: 1 hour.Estimated Total Burden Hours: 636

hours.Total Burden Cost (capital/startup): 0.Total Burden Cost (operating/

maintaining): $15,900.Comments submitted in response to

this comment request will besummarized and/or included in therequest for Office of Management andBudget approval of the informationcollection request; they will alsobecome a matter of public record.

Dated: May 1, 2001.Grace A. Kilbane,Administrator, Office of Workforce Security.[FR Doc. 01–11796 Filed 5–9–01; 8:45 am]BILLING CODE 4510–30–P

NATIONAL COUNCIL ON DISABILITY

Advisory Committee Meeting/Conference Call

AGENCY: National Council on Disability(NCD).SUMMARY: This notice sets forth theschedule of the forthcoming meeting/

conference call for a working group ofNCD’s advisory committee—International Watch. Notice of thismeeting is required under Section10(a)(1)(2) of the Federal AdvisoryCommittee Act (Pub. L. 92–463).

INTERNATIONAL WATCH: The purpose ofNCD’s International Watch is to shareinformation on international disabilityissues and to advise NCD’s ForeignPolicy Team on developing policyproposals that will advocate for aforeign policy that is consistent with thevalues and goals of the Americans withDisabilities Act.

WORK GROUP: International Conventionon the Human Rights of People withDisabilities.

DATE AND TIME: May 30, 2001, 12 p.m.–1 p.m. EDT.

FOR INTERNATIONAL WATCH INFORMATION,CONTACT: Kathleen A. Blank, Attorney/Program Specialist, NCD, 1331 F StreetNW., Suite 1050, Washington, DC20004; 202–272–2004 (Voice), 202–272–2074 (TTY), 202–272–2022 (Fax),[email protected] (e-mail).

AGENCY MISSION: NCD is an independentfederal agency composed of 15 membersappointed by the President of theUnited States and confirmed by the U.S.Senate. Its overall purpose is to promotepolicies, programs, practices, andprocedures that guarantee equalopportunity for all people withdisabilities, regardless of the nature ofseverity of the disability; and toempower people with disabilities toachieve economic self-sufficiency,independent living, and inclusion andintegration into all aspects of society.

This committee is necessary toprovide advice and recommendations toNCD on international disability issues.

We currently have balancedmembership representing a variety ofdisabling conditions from across theUnited States.

OPEN MEETINGS/CONFERENCE CALLS: Thisadvisory committee meeting/conferencecall of NCD will be open to the public.However, due to fiscal constraints andstaff limitations, a limited number ofadditional lines will be available.Individuals can also participate in theconference call at the NCD office. Thoseinterested in joining this conference callshould contact the appropriate staffmember listed above.

Records will be kept of allInternational Watch meetings/conference calls and will be availableafter the meeting for public inspectionat NCD.

Signed in Washington, DC, on May 7, 2001.Ethel D. Briggs,Executive Director.[FR Doc. 01–11807 Filed 5–9–01; 8:45 am]BILLING CODE 6820–MA–M

NUCLEAR REGULATORYCOMMISSION

Advisory Committee on ReactorSafeguards Advanced ReactorSubcommittee Workshop onRegulatory Challenges for FutureNuclear Power Plants; Notice ofMeeting

The ACRS Subcommittee onAdvanced Reactors will hold a meetingon June 4–5, 2001 in the NRCAuditorium in Two White Flint North,11545 Rockville Pike, Rockville,Maryland.

The Subcommittee will discussmatters related to regulatory challengesfor future nuclear power plants. TheSubcommittee meeting will beconducted as a workshop, withpresentations, panel discussions, andparticipation by the workshopattendees. The meeting schedule is asfollows:

Monday, June 4, 2001—9 a.m. to 7 p.m.

1. Introduction—G. Apostolakis and T. Kress:9 a.m.–9:15 a.m.

2. Keynote Address by Commissioner NilsDiaz: 9:15 a.m.–10 a.m.

Break—10 a.m.–10:15 a.m.3. DOE Presentations

Overview and Introduction to GenerationIV Initiative—W. Magwood, DOE: 10:15a.m.–10:40 a.m.

Generation IV Goals and Roadmap Effort—R. Versluis, DOE: 10:40 a.m.–11 a.m.

Near-Term Deployment Efforts—T. Miller,DOE: 11 a.m.—11:25 a.m.

Generation IV Concepts—R. Versluis, DOE:11:25 a.m.–11:40 a.m.

Next Steps Generation III+/IV—S. Johnson,DOE: 11:40 a.m.–12 p.m.

Lunch—12 p.m–1 p.m.4. Generation IV Design Concepts

Pebble Bed Modular Reactor—J. Muntz,Exelon: 1 p.m.–1:45 p.m.

International Reactor Innovative andSecure—M. Carelli, Westinghouse: 1:45p.m.–2:30 p.m.

General Atomic-Gas Turbine/ModularHelium Reactor—L. Parme, GeneralAtomics: 2:30 p.m.–3:15 p.m.

Break—3:15 p.m.–3:30 p.m.General Electric-Advanced Liquid Metal

Reactor and ESBWR designs—C.Boardman, General Electric: 3:30 p.m.–4:15 p.m.

5. NRC PresentationsNRC Response to Commission Direction on

Evaluation of NRC LicensingInfrastructure (NRR/RES/NMSS)—M.Gamberoni, NRC–NRR: 4:15 p.m.–5:15p.m.



Planned RES Activities—A. Thadani,NRC–RES: 5:15 p.m.–6 p.m.

6. Panel Discussion on Industry and NRCLicensing Infrastructure Needed forGeneration IV Reactors: 6 p.m.–7 p.m.

Panelists: A. Thadani, NRC, S. Johnson,DOE, J. Muntz, Exelon, M. Carelli,Westinghouse, L. Parme, GeneralAtomics, C. Boardman, General Electric

Tuesday, June 5, 2001–8:30 a.m. to 6:45 p.m.

1. Introduction—G. Apostolakis and T. Kress:8:30 a.m.–8:45 a.m.

2. NEI Advanced Reactors Initiatives—Presentation by R. Simard, NEI: 8:45a.m.–9:30 a.m.

3. Technical Presentations: 9:30 a.m.–4 p.m.Safety Goals for Future Nuclear Power

Plants—N. Todreas, MIT: 9:30 a.m.–10:30 a.m.

Break—10:30 a.m.–10:45 a.m.Future Reactor Licensing by Test—A.

Kadak, MIT: 10:45 a.m.–11:45 a.m.NERI Project on Risk-Informed

Regulation—G. Davis, Westinghouse andM. Golay, MIT: 11:45 a.m.–12:45 p.m.

Lunch—12:45 p.m.–2 p.m.Advanced Safety Concepts—C. Forsberg,

ORNL: 2 p.m.–3 p.m.Regulatory Framework for Future Nuclear

Power Plants—A. Heymer, NEI: 3 p.m.–4 p.m.

Break—4 p.m.–4:15 p.m.4. ACRS and Panel Discussion with Audience

Participation The Most ImportantRegulatory Challenges for the Licensingof Future Nuclear Power Plants: 4:15p.m.–6:30 p.m.

Panelists: N. Todreas, MIT, R. Barrett, NRR,E. Lyman, NCI, R. Simard, NEI

5. Conclusions—Apostolakis, Kress, et al:6:30 p.m.–6:45 p.m.

The meeting schedule and scheduledspeakers is subject to change asnecessary. Further informationregarding topics to be discussed,whether the meeting has been canceledor rescheduled, and the Chairman’sruling on requests for the opportunity topresent oral statements and the timeallotted therefor, can be obtained bycontacting the cognizant ACRS staffengineer, Dr. Medhat M. El-Zeftawy(telephone 301–415–6889) between 7:30a.m. and 4:15 p.m. (EDT). Personsplanning to attend this meeting areurged to contact the above namedindividual one or two working daysprior to the meeting to be advised of anypotential changes to the agenda, etc.,that may have occurred.

Dated: May 4, 2001.

Howard J. Larson,Special Assistant, ACRS/ACNW.[FR Doc. 01–11754 Filed 5–9–01; 8:45 am]


SECURITIES AND EXCHANGECOMMISSION

Submission for OMB Review;Comment Request

Upon Written Request; Copies AvailableFrom: Securities and ExchangeCommission, Office of Filings andInformation Services, Washington, DC20549

Extension:Form S–3, OMB Control No. 3235–0073,

SEC File No. 270–61Form S–8, OMB Control No. 3235–0066,

SEC File No. 270–66

Notice is hereby given that, pursuantto the Paperwork Reduction Act of 1995(44 U.S.C. 3501 et seq.) the Securitiesand Exchange Commission(‘‘Commission’’) has submitted to theOffice of Management and Budgetrequests for extension of the previouslyapproved collections of informationdiscussed below.

Form S–3 is used by issuers to registersecurities pursuant to the Securities Actof 1933. The Commission uses verylittle of the information it collects,except on an occasional basis in theenforcement of the securities laws. Thelikely respondents will be companies.The information must be filed with theCommission on occasion. Form S–3 is apublic document. All informationprovided is mandatory. Approximately3,483 issuers file Form S–3 at anestimated 398 hours per response for atotal annual burden of 1,385,934 hours.

Form S–8 is a primary registrationstatement used by qualified registrantsto register securities issuers inconnection with employee benefitplans. Form S–8 provides verification ofcompliance with securities lawrequirements and assures the publicavailability and dissemination of suchinformation. The likely respondents willbe companies. The information must befiled with the Commission on occasion.Form S–8 is a public document. Allinformation provided is mandatory.Approximately 1,660 issuers file FormS–8 at an estimated 24 hours perresponse for a total annual burden of39,840 hours.

An agency may not conduct orsponsor, and a person is not required torespond to, a collection of informationunless it displays a currently validcontrol number.

Written comments regarding theabove information should be directed tothe following persons: (i) Desk Officerfor the Securities and ExchangeCommission, Office of Information andRegulatory Affairs, Office ofManagement and Budget, Room 10102,New Executive Office Building,

Washington, DC 20503; and (ii) MichaelE. Bartell, Associate Executive Director,Office of Information Technology,Securities and Exchange Commission,450 Fifth Street, NW., Washington, DC20549. Comments must be submitted toOMB within 30 days of this notice.

Dated: May 3, 2001.Margaret H. McFarland,Deputy Secretary.[FR Doc. 01–11798 Filed 5–9–01; 8:45 am]BILLING CODE 8010–01–M


[Release No. 35–27395]

Filings Under the Public Utility HoldingCompany Act of 1935, as Amended(‘‘Act’’)

May 4, 2001.

Notice is hereby given that thefollowing filing(s) has/have been madewith the Commission pursuant toprovisions of the Act and rulespromulgated under the Act. Allinterested persons are referred to theapplication(s) and/or declaration(s) forcomplete statements of the proposedtransaction(s) summarized below. Theapplication(s) and/or declaration(s) andany amendment(s) is/are available forpublic inspection through theCommission’s Branch of PublicReference.

Interested persons wishing tocomment or request a hearing on theapplication(s) and/or declaration(s)should submit their views in writing byMay 29, 2001, to the Secretary,Securities and Exchange Commission,Washington, DC 20549–0609, and servea copy on the relevant applicant(s) and/or declarant(s) at the address(es)specified below. Proof of service (byaffidavit or, in the case of an attorney atlaw, by certificate) should be filed withthe request. Any request for hearingshould identify specifically the issues offacts or law that are disputed. A personwho so requests will be notified of anyhearing, if ordered, and will receive acopy of any notice or order issued in thematter. After May 29, 2001, theapplication(s) and/or declaration(s), asfiled or as amended, may be grantedand/or permitted to become effective.

Alabama Power Company et al. (70–8461)

Alabama Power Company(‘‘Alabama’’), 600 North 18th Street,Birmingham, Alabama 35291, GeorgiaPower Company (‘‘Georiga’’), 333Piedmont Avenue, N.E., Atlanta,Georgia 30308, Gulf Power Company



1 By order dated March 15, 2000. TheCommission authorized National Grid to, amongother things, issue up to $1 billion in convertiblebonds through the Authorization Period, subject tothe limitation that the aggregate amount at any onetime outstanding of all its equity and debt securitieswill not exceed $4 billion. See National Grid Groupplc, HCAR No. 27154 (‘‘Prior Order’’).

2 Applicants state that it is presently intendedthat the bonds would be exchangeable for ordinaryshares of Energis plc, a National Grid subsidiaryengaged in telecommunications in the U.K. andcertain other countries.

3 If the debt securities are issued in a non-U.S.currency, the rate would be based on thegovernment benchmark for the related currency.

4 Specifically, Applicants state that National Gridwould use the proceeds from these sales to acquire,retire, or redeem securities issued by National Gridor its United States subsidiaries, or for necessaryand urgent corporate purposes such as extending orrenewing debt related to its prior acquisition ofNew England Electric System Merger-Related Debt,financing capital expenditures by its subsidiaries,financing the working capital requirements of itssystem, acquiring or funding the operations ofexempt wholesale generators and foreign utilitycompanies.

(‘‘Gulf’’), 500 Bayfront Parkway,Pensacola, Florida 32501, MississippiPower Company (‘‘Mississippi’’), 2992West Beach, Gulfport, Mississippi39501, and Savannah Electric andPower Company (‘‘Savannah’’), 600 EastBay Street, Savannah, Georgia 31401,(together, ‘‘Operating Companies’’) allelectric public utility subsidiaries ofThe Southern Company, a registeredholding company, have filed a post-effective amendment under sections 6(a)and 7 of the Act and rule 54 under theAct.

By order dated December 7, 1998(HCAR No. 26949) (‘‘December 1998Order’’), Alabama received authority otissue $500,000,000 in preferredsecurities through December 31, 2005.Alabama has issued $50,000,000 inpreferred securities under thisauthorization to date. Alabama nowrequests an extension of time to issuethe remaining $450,000,000 in preferredsecurities through June 30, 2007(‘‘Authorization Period’’).

Georgia received authority in theDecember 1998 Order to issue$310,750,000 in preferred securitiesthrough December 31, 2005. Georgia hasissued $310,750,000 in preferredsecurities under this authorization todate. Georgia now requests authority toissue an additional $389,250,000 for anaggregate amount of $500,000,000 inpreferred securities and an extension oftime to issue these securities throughthe Authorization Period.

By order dated January 16, 1998(HCAR No. 26817), Gulf receivedauthority to issue $50,000,000 inpreferred securities through December31, 2005. Gulf has issued $45,000,000 inpreferred securities under thisauthorization to date. Gulf now requestsauthority to issue an additional$95,000,000 for an aggregate amount of$100,000,000 in preferred securities andan extension of time to issue thesesecurities through the AuthorizationPeriod.

Mississippi received authority toissue $75,000,000 in preferred securitiesthrough December 31, 2005. Mississippihas not issued any of these securities todate. Mississippi now requests authorityto issue an additional $25,000,000 for anaggregate of $100,000,000 in preferredsecurities and an extension of time toissue these securities through theAuthorization Period.

Savannah currently has no authorityto issue preferred securities. Savannahreceived authority under the December1998 Order to issue $40,000,000 inpreferred securities and has issued thetotal amount authorized. Savannah nowrequests authority to issue an additional

$50,000,000 in preferred securitiesthrough the Authorization Period.

The Operating Companies will use theproceeds from the sale of the preferredsecurities in connection with theirongoing construction programs, to payscheduled maturities and/or refundingsof their securities, to repay short-termindebtedness to the extent outstandingand for other general corporatepurposes.

National Grid Group plc, et al (70–9829)

National Grid Group plc (‘‘NationalGrid’’), a registered holding company,located at 15 Marylebone Road, London,NW15JD, United Kingdom, togetherwith its direct and indirect registeredholding company subsidiaries(‘‘Intermediate Companies’’) NationalGrid (US) Holdings Limited, NationalGrid (US) Investments, both located at15 Marylebone Road, London, NW15JD,United Kingdom, National Grid(Ireland) 1 Limited, National Grid(Ireland) 2 Limited, both located at 6Avenue Pasteur, L 2310, Luxembourg,National Grid General Partnership,located on the 8th Floor of the OliverBuilding, 2 Oliver Street, Boston,Massachusetts 02109, and National GridUSA, a registered holding company, adirect subsidiary of National GridGeneral Partnership and an indirectsubsidiary of the other IntermediateCompanies (collectively, ‘‘Applicants’’),located at 25 Research Drive,Westborough, Massachusets 01582, havefiled an application-declaration undersections 6(a) 7, 9(a), 10, 12(b) and 12(f)of the Act and rules 45(a) and 54 underthe Act.

Applicants request authority forNational Grid to increase the aggregateamount of convertible bonds that it mayissue through May 31, 2003(‘‘Authorization Period’’) to $2 billion.1National Grid will continue to maintainan overall $4 billion limit on thesecurities it issues, excludingguaranties. The convertible bondswould be exchangeable into ordinaryshares of other securities.2 Consistentwith the terms of the Prior Order, theinterest rate on these debt securitieswould not exceed 300 basis points over

that for U.S. treasury securities havingcomparable maturities,3 and thematurities of these debt securities wouldnot exceed fifty years. Applicants statethat these additional bonds would beissued and sold if market conditions arefavorable, and the proceeds from thesesales would be used to retire existingdebt and for purposes previouslyapproved by the Commission in thePrior Order.4

Applicants also request authority,through the Authorization Period, forNational Grid and its subsidiaries thatare outside of the National Grid USAownership chain, including NationalGrid Holdings Limited and its directand indirect subsidiaries (collectively,‘‘FUCO Subsidiaries’’), to acquire thedebt securities of the IntermediateCompanies and National Grid USA. Theintrasystem loans would be unsecuredand would have short-, medium- andlong-term maturities depending on howthe proceeds would be used. Short-termloans would be less than one year inmaturity, medium-term loans wouldhave maturities up to five years, andlong-term loans would have maturitiesof up to fifty years. Loans to NationalGrid USA from any company in theNational Grid system would be atinterest rates designed to parallel theeffective cost of debt capital of NationalGrid. Applicants state that the interestrates paid by National Grid USA onthese loans should not result in anincrease in the cost of capital used bythe National Grid USA group and that,if it is discovered that this lending rateis higher than the cost of funds NationalGrid USA would incur in a directborrowing at that time fromnonassociates, the interest rate appliedto National Grid USA borrowings wouldbe based on that lower cost of funds.The maturities of borrowings by theIntermediate Companies from NationalGrid or a FUCO Subsidiary may beshort-, medium- or long-term. All of theproposed borrowings would beunsecured. The proceeds of these loanswould be used to meet the short-termworking capital requirements ofNational Grid USA and its subsidiaries.



1 15 U.S.C. 78s(b)(1).2 17 CFR 240.19b–4.

3 The Committee’s Report is available online atwww.amex.com.

4 The audit committee requirements are beingphased-in over an 18 month period for issuers thatwere listed on the Amex at the time the changeswere adopted.

5 Section 120 of the Amex Company Guidespecifies that ‘‘each company shall utilize [its]Audit Committee or a comparable body of theBoard of Directors for the review of potentialconflict of interest situations where appropriate’’(emphasis added).

Further, Applicants request authorityfor the Intermediate Companies, throughthe Authorization Period, to enter intocurrency derivatives with National Gridand the FUCO Subsidiaries. NationalGrid represents that these transactionswill meet the criteria established by theFinancial Accounting Standards Boardin order to qualify for hedge-accountingtreatment, or will so qualify undergenerally accepted accountingprinciples in the United Kingdom(‘‘U.K. GAAP’’). If these proposedtransactions qualify for hedgeaccounting treatment under U.K. GAAP,but not under generally acceptedaccounting principles in the UnitedStates (‘‘U.S. GAAP’’), National Grid’sfinancial statements filed in accordancewith Form 20–F will contain areconciliation of the difference betweenthe two methods of accountingtreatment. National Grid further statesthat no gain or loss on a hedgingtransaction attributable to a companyoutside the National Grid USA Groupwill be allocated to any company in theNational Grid USA Group, regardless ofthe accounting treatment accorded tothe transaction. These proposedderivative transactions are designed tofacilitate the equity financing of theIntermediate Companies andaccommodate foreign exchange hedging.Applicants state that losses incurred byany Intermediate Company inconnection with these swaps, and theassociated tax effects, would not betransferred down the IntermediateCompany chain to National Grid USA,and consequently would not adverselyaffect National Grid USA or any of itssubsidiaries.

The Commission’s equitycapitalization standard and all otherterms of the Prior Order, with theexception of the proposed increase inthe aggregate amount of convertiblebonds to be issued, would continue toapply.

For the Commission, by the Division ofInvestment Management, pursuant todelegated authority.

Margaret H. McFarland,Deputy Secretary.[FR Doc. 01–11799 Filed 5–9–01; 8:45 am]



[Release No. 34–44256; File No. SR–Amex–2001–24]

Self-Regulatory Organizations; Noticeof Filing and Immediate Effectivenessof a Proposed Rule Change by theAmerican Stock Exchange LLCRelating to Independent Director andAudit Committee Requirements

May 3, 2001.

Pursuant to Section 19(b)(1) of theSecurities Exchange Act of 1934(‘‘Act’’)1 and Rule 19b–4 thereunder,2notice is hereby given that on April 18,2001, the American Stock Exchange LLC(‘‘Amex’’ or ‘‘Exchange’’) filed with theSecurities and Exchange Commission(‘‘Commission’’) the proposed rulechange as described in Items I, II, andIII below, which Items have beenprepared by the Amex. The Commissionis publishing this notice to solicitcomments on the proposed rule changefrom interested persons.

I. Self-Regulatory Organization’sStatement of the Terms of Substance ofthe Proposed Rule Change

The Amex proposes to amend Section121 of the Amex Company Guide toclarify that domestic listed companiesare required to have a sufficient numberof independent directors on their boardof directors to satisfy the Exchange’saudit committee. The text of theproposed rule change is set forth below.New text is in italics.

* * * * *

Section 121. INDEPENDENT DIRECTORSAND AUDIT COMMITTEE

A. Independent Directors

The Exchange requires that domestic listedcompanies have a sufficient number ofindependent directors on the company’sboard of directors to satisfy the auditcommittee requirements set forth below.Independent directors are not officers of thecompany and are, in the view of thecompany’s board of directors, free of anyrelationship that would interfere with theexercise of independent judgment. Thefollowing persons shall not be consideredindependent:

(a)–(e) No change

* * * * *

II. Self-Regulatory Organization’sStatement of the Purpose of, andStatutory Basis for, the Proposed RuleChange

In its filing with the Commission, theAmex included statements concerning

the purpose of, and basis for, theproposed rule change and discussed anycomments it received on the proposedrule change. The text of these statementsmay be examined at the places specifiedin Item IV below. The Amex hasprepared summaries, set forth insections A, B, and C below, of the mostsignificant aspects of such statements.

A. Self-Regulatory Organization’sStatement of the Purpose of, andStatutory Basis for, the Proposed RuleChange

1. Purpose

The Exchange is proposing to amendSection 121A of the Amex CompanyGuide to clarify that each domesticlisted company is required to have asufficient number of independentdirectors on its board of directors tosatisfy the audit committeerequirements specified in part B ofSection 121. Section 121 was amendedin December 1999 to implement therecommendations contained in theFebruary 1999 report of the Blue RibbonCommittee on Improving theEffectiveness of Corporate AuditCommittees 3 which were aimed atstrengthening the independence of theaudit committee, making the auditcommittee more effective, andaddressing mechanisms foraccountability among the auditcommittee, the outside auditors, andmanagement.4 Section 121, particularlywhen analyzed in conjunction withSection 120 of the Amex CompanyGuide, currently requires theindependent directors referencedtherein to be members of the company’sboard of directors.5 However, inquiriesfrom several listed companies have ledthe Exchange to conclude that there maybe some confusion among the listedcompany community with respect to therequirement. Accordingly, to avoidfurther confusion, the Exchange isproposing to amend Section 121 toclarify that the independent directorsmust be members of the company’sboard of directors.

2. Statutory Basis

The Exchange believes that theproposed rule change is consistent with



6 15 U.S.C. 78f(b)(5).7 15 U.S.C. 78s(b)(3)(A)(i).8 17 CFR 240.19b–4(f)(1).

9 17 CFR 200.30–3(a)(12)1 15 U.S.C. 78s(b)(1).

Section 6(b)(5) 6 of the Act, whichrequires, among other things, theExchange’s rules to be designed toprevent fraudulent and manipulativeacts and practices, to promote just andequitable principles of trade, and, ingeneral, to protect investors and thepublic interest.

B. Self-Regulatory Organization’sStatement on Burden on Competition

The Exchange does not believe thatthe proposed rule change will result inany burden on competition that is notnecessary or appropriate in furtheranceof the purposes of the Act.

C. Self-Regulatory Organization’sStatement on Comments on theProposed Rule Change Received FromMembers, Participants, or Others

The Exchange did not solicit orreceive written comments on theproposed rule change.

III. Date of Effectiveness of theProposed Rule Change and Timing forCommission Action

The proposed rule change has becomeeffective pursuant to Section19(b)(3)(A)(i) of the Act 7 andsubparagraph (f)(1) of Rule 19b–4thereunder 8 because it constitutes as astated policy, practice, or interpretationwith respect to the meaning,administration, or enforcement of anexisting rule of the Exchange. At anytime within 60 days of the filing of suchproposed rule change, the Commissionmay summarily abrogate such rulechange if it appears to the Commissionthat such action is necessary orappropriate in the public interest, forthe protection of investors, or otherwisein the furtherance of the Act.

IV. Solicitation of Comments

Interested persons are invited tosubmit written data, views, andarguments concerning the foregoing,including whether the proposed rulechange is consistent with the Act.Persons making written submissionsshould file six copies thereof with theSecretary, Securities and ExchangeCommission, 450 Fifth Street, NW.,Washington, DC 20549–0609. Copies ofthe submission, all subsequentamendments, all written statementswith respect to the proposed rulechange that are filed with theCommission, and all writtencommunications relating to theproposed rule change between theCommission and any person, other than

those that may be withheld from thepublic in accordance with theprovisions of 5 U.S.C. 552, will beavailable for inspection and copying inthe Commission’s Public ReferenceRoom. Copies of the filing will also beavailable for inspection and copying atthe principal office of the Amex. Allsubmissions should refer to the File No.SR–Amex–2001–24 and should besubmitted by May 31, 2001.

For the Commission, by the Division ofMarket Regulation, pursuant to delegatedathority.9

Margaret H. McFarland,Deputy Secretary.[FR Doc. 01–11801 Filed 5–9–01; 8:45 am]BILLING CODE 8010–01–M


[Release No. 34–44260; File No. SR–DTC–2001–03]

Self-Regulatory Organizations; TheDepository Trust Company; Notice ofFiling of Proposed Rule Change toMake Foreign Securities Eligible forDepository Services

May 4, 2001.

Pursuant to Section 19(b)(1) of theSecurities Exchange Act of 1934(‘‘Act’’),1 notice is hereby given that on,February 23, 2001, The Depository TrustCompany (‘‘DTC’’) filed with theSecurities and Exchange Commission(‘‘Commission’’) the proposed rulechange as described in Items I, II, andIII below, which items have beenprepared primarily by DTC. TheCommission is publishing this notice tosolicit comments on the proposed rulechange from interested parties.


The proposed rule change wouldallow DTC to make eligible fordepository services foreign securitiesthat are presently eligible for theNational Securities ClearingCorporation’s (‘‘NSCC’’) foreign securitycomparison and netting service.


In its filing with the Commission,DTC included statements concerningthe purpose of and basis for theproposed rule change and discussed any

comments it received on the proposedrule change. The text of these statementsmay be examined at the places specifiedin Item IV below. DTC has preparedsummaries, set forth in sections (A), (B),and (C) below, of the most significantaspects of these statements.

(A) Self-Regulatory Organization’sStatement of the Purpose of, andStatutory Basis for, the Proposed RuleChange

The purpose of the proposed rulechange is to provide DTC and NSCCparticipants who are presently usingNSCC’s foreign securities clearingservices the use, if applicable, ofdepository services at DTC for thesesecurities. These securities are generallyforeign ordinary equities that have beenassigned security numbers (CINS) andNASD symbols to automate thecomparison process. Most trades inforeign ordinary shares that areexecuted between two U.S. broker-dealers are forwarded to NASD’sAutomated Confirmation Transactionsystem and submitted as locked-intrades to NSCC.

Today, through NSCC’s ForeignSecurities Comparison and Nettingsystem, foreign securities are comparedand netted on a bilateral basis in astandardized and automated fashionthrough NSCC’s over-the-countersystem. Receive and deliver instructionsare automatically generated by NSCCand are distributed to participants onthe morning after comparison, whichexpedites the settlement process fornon-U.S. equity transactions. Trades arenetted on a bilateral participant-to-participant basis thereby reducing thenumber of deliveries for settlement inthe local market. NSCC does notcurrently and will not under theproposed rule change guarantee theultimate settlement of these transactionsor the clearance cash adjustment.

Given the increase in activity over thelast few years, U.S. broker-dealers havebecome concerned about the number ofpotential risk and operational issuesassociated with the current process,such as the lack of straight throughprocessing (‘‘STP’’) from the point oftrade to settlement. It is DTC’s plan toenhance the settlement part of theprocess and to deliver an automatedapproach to complete the STP processfrom trade to settlement. In doing so,many operational issues will beminimized or eliminated.

Today, there is a separation betweenthe physical movement of these foreignsecurities and the money settlement ofthe trades (i.e., there is no deliveryversus payment (‘‘DVP’’) as there is truefor U.S. trades). The delivery of the



2 DTC will submit a proposed rule change underSection 19(b) before establishing any new link withany foreign custodian.

securities occurs in the foreign marketsand then some time later the paymentis made in the U.S.

Currently, trades in these foreignsecurities executed in the U.S. mustsettle in the local market without thebenefit of any of DTC’s infrastructure.Therefore, U.S. based broker-dealerswho trade in foreign securities in theU.s. must set up correspondentrelationships in the local market.Additionally, the U.S. broker-dealersmust each deal separately with theinherent inefficiencies, such as largetime-zone differences, in this structure.Also, the need to set up suchcorrespondent relationships putssmaller broker-dealers at a disadvantagebecause many smaller broker-dealers donot have the resources or tradingvolumes to justify such relationshipsand therefore must enlist a large broker-dealer to perform such services for theirclients. As a result, trading costs for theunderlying investors are increased.

DTC’s plan is to open a custodialaccount in a local market with an agentbank or central securities depository(‘‘CSD’’) (collectively ‘‘custodian’’) thatwill hold shares on DTC’s behalf. DTC’sparticipants will be able tocommunicate with DTC with respect toforeign securities as they do today withrespect to currently eligible U.S.securities. Due to differences in localmarket practice from that in the U.S.,the eligibility procedures for foreignsecurities will likely differ from thosecurrently used by DTC for eligible U.S.securities. However, participants will bemade aware of this fact and of theeligibility criteria and procedures. Thesesecurities will be ‘‘tagged’’ in DTC’ssystem in order for DTC participants toreadily identify them.

DTC’s first such link will be withCitibank N.A., Hong Kong Branch,acting as DTC’s custodian.2 Through thecustodian, a participant would moveoverseas inventory from its currentcustodian into DTC’s account at DTC’sforeign custodian. Upon notificationfrom its custodian that the foreignsecurities are being held in its account,DTC would update the participant’ssecurities position at DTC. Once theposition is on DTC’s books and records,the participant would be able to movethe position by book-entry DVP ifdesired. In addition, other activities,such as automated customer accounttransfer services and stock loan, that arecurrently available for U.S. securitieswould also be available for foreign

securities once they are made DTCeligible.

The DTC Risk ManagementCommittee will review this servicebefore DTC goes live with it. Thecommittee will use the same duediligence template that it has used on all‘‘outward bound’’ links with foreignCSDs.

The principal benefits that will attendDTC’s making these foreign securitieseligible for certain depository servicesare: (1) connecting the delivery to thesettlement on a DVP basis; (2)accelerating the speed of settlement ofcross-border transactions in theseforeign securities; (3) eliminating mostphysical movements of these foreignsecurities; (4) reducing costs and risks toDTC participants (DTC’s providing thesebenefits to its participants is consistentwith DTC’s objective of providingefficient book-entry clearance andsettlement facilities while at the sametime reducing risks to its participants.);and (5) making these services availableto a large number of U.S. entities (i.e.,DTC participants and their clients andcustomers).

The proposed rule change isconsistent with the requirements ofSection 17A(b)(3)(A) and (F) of the Actand the rules and regulationsthereunder applicable to DTC becausethe proposed rule change will reducerisks and associated costs to DTCparticipants. Further, the proposed rulechange will be implemented anddesigned to promote the prompt andaccurate clearance and settlement ofsecurities transactions and to assuresafeguarding of securities and funds thatare in the custody or control of DTC orfor which DTC is responsible.

(B) Self-Regulatory Organization’sStatement on Burden on Competition

DTC does not believe that theproposed rule change will impose anyburden on competition that is notnecessary or appropriate in furtheranceof the purposes of the Act, in the publicinterest, and for the protection ofinvestors.

(C) Self-Regulatory Organization’sStatement on Comments on theProposed Rule Change Received fromMembers, Participants or Others

This concept was presented to theoperations and planning committee ofDTC and DTC Board of Directors. Anumber of DTC firms have voiced strongsupport of this project at the Boardlevel.


Within thirty-five days of the date ofpublication of this notice in FederalRegister or within such longer period:(i) As the Commission may designate upto ninety days of such date if it findssuch longer period to be appropriateand publishes its reasons for so findingor (ii) as to which DTC consents, theCommission will:

(A) By order approve such proposedrule change or

(B) Institute proceedings to determinewhether the proposed rule changeshould be disapproved.


Interested persons are invited tosubmit written data, views, andarguments concerning the foregoing,including whether the proposed rulechange is consistent with the Act.Persons making written submissionsshould file six copies thereof with theSecretary, Securities and ExchangeCommission, 450 Fifth Street, N.W.,Washington, D.C. 20549–0609. Copies ofthe submission, all subsequentamendments, all written statementswith respect to the proposed rulechange that are filed with theCommission, and all writtencommunications relating to theproposed rule change between theCommission and any person, other thanthose that may be withheld from thepublic in accordance with theprovisions of 5 U.S.C. 552, will beavailable for inspection and copying inthe Commission’s Public ReferenceRoom, 450 Fifth Street, N.W.,Washington, D.C. 20549. Copies of suchfiling also will be available forinspection and copying at the principaloffice of DTC. All submissions shouldrefer to File No. SR–DTC–2001–03 andshould be submitted by May 31, 2001.

For the Commission by the Division ofMarket Regulation, pursuant to delegatedauthority.

Margaret H. McFarland,Deputy Secretary.[FR Doc. 01–11804 Filed 5–9–01 8:45 am]




1 15 U.S.C. 78s(b)(1).2 17 CFR 240.19b–4.

3 An OTC equity security generally is any equitythat is not listed or traded on Nasdaq or a nationalsecurities exchange. OTCBB securities includenational, regional, and foreign equity issues,warrants, units, American Depository Receipts(‘‘ADRs’’), and Direct Participation Programs(‘‘DPPs’’).

4 Quotes in DPPs may be updated twice daily:once between 8:30 and 9:30 a.m. ET and againbetween 12:00 and 12:30 p.m. ET.


[Release No. 34–44257; File No. SR–NASD–2001–28]

Self-Regulatory Organizations; Noticeof Filing of Proposed Rule Change bythe National Association of SecuritiesDealers, Inc. To Institute an AutomatedOrder Delivery Service on the OTCBB

May 4, 2001.

Pursuant to Section 19(b)(1) of theSecurities Exchange Act of 1934(‘‘Act’’)1 and Rule 19b–4 2 thereunder,notice is hereby given that on April 12,2001, the National Association ofSecurities Dealers, Inc. (‘‘NASD’’),through its subsidiary, The NasdaqStock Market, Inc. (‘‘Nasdaq’’) filed withthe Securities and ExchangeCommission (‘‘Commission’’) theproposed rule change as described inItems I, II, and III below, which Itemshave been prepared by Nasdaq. TheCommission is publishing this notice tosolicit comments on the proposed rulechange from interested persons.


Nasdaq is proposing to implement anenhancement to the OTC Bulletin BoardService (‘‘OTCBB’’). Nasdaq proposes tocreate an automated order deliveryservice (‘‘ODS’’) that will enable OTCBBusers to communicate electronicallywith one another to negotiate andconfirm the execution of orders. Thiscommunication interface would offer analternative to telephoniccommunication, which would increasethe speed, efficiency, and quality ofexecution in the OTCBB. The proposedODS would offer much of thefunctionality of the SelectNet servicethat is used for trading of NasdaqNational Market and SmallCapsecurities. Nasdaq states that SelectNethas proven to be a versatile and effectivetrading tool in those segments of themarket.

The principal purpose of thisenhancement is to supplement theexisting capacity of market makers toconsummate transactions pursuant toapplicable trading rules. The ODSwould enable member firms tocommunicate and confirm the executionterms of individual transactionselectronically, just as they do bytelephone today. The ODS wouldimpose no new trading rules orobligations, but would permit market

participants to comply more efficientlywith existing rules and obligations,including best execution and firm quoteobligations. Additionally, orderexecutions negotiated through the ODSwould automatically generatetransaction reports for OTCBB issuesand locked-in trades for clearancepurposes.

The following paragraphs describe thehistory of the OTCBB, and also outlinethe major elements of the ODSenhancement.

Development and Operation of theOTCBB

The OTCBB is a regulated quotationservice that displays real-time quotes,last-sale prices, and volume informationin over-the-counter equity securities.3The OTCBB began operating on a pilotbasis in June 1990 as part of marketstructure reforms designed to improvetransparency in the over-the-counterequities market. The system wasdesigned to facilitate the widespreadpublication of quotation and last-saleinformation. Since December 1993,firms have been required to reporttrades in all domestic OTC equitysecurities through the AutomatedConfirmation Transaction Service(‘‘Act’’) within 90 seconds of thetransaction.

Today, the OTCBB provides anelectronic quotation medium forsubscribing members to reflect marketmaking interest in OTCBB-eligiblesecurities. The OTCBB currently allowsmarket makers to use an authorizedNasdaq Workstation II (‘‘NWII’’) toupdate quotes, query positions, registerin active stocks, and add or updatetelephone numbers. Market makers mayaccess the service between 7:30 a.m. and6:30 p.m. ET and may update quotes indomestic securities, foreign securities,and ADRs any time the system is inoperation.4

Subscribing market makers can utilizethe OTCBB to enter, update, and displaytheir proprietary quotations inindividual securities on a real-timebasis. Such quotation entries mayconsist of a priced bid and/or offer, anunpriced indication of interest(including ‘‘bid wanted’’ or ‘‘offerwanted’’ indications), or a bid/offeraccompanied by a modifier to reflectunsolicited customer interest. A

subscribing market maker can alsoaccess the proprietary quotations thatother firms have entered into theOTCBB Service along with highest bidand lowest offer (i.e., an inside bid-askcalculation) in any OTCBB-eligiblesecurity with at least two market makersdisplaying two-aided markets. Allpriced quotes in domestic securities,foreign securities, and ADRs are firm; allquotes in DPPs are indicative.

Additionally, all NASD Level Imembers with Level 2⁄3 service mayview OTCBB data without paying anadditional charge beyond their NWIIfees. However, only registered marketmakers are permitted to enter quotesand indications of interest.

Access to the ODSUpon introduction, the ODS would be

available to all NASD member firms thathave authorized access to Nasdaq Level2⁄3 through NWII terminals or throughan Applications Programming Interface,and that have appropriate clearingarrangements through a registerednational clearing agency. The ODSwould be accessible for negotiation andconfirmation of transactions in OTCBBissues during normal business hours forthe OTCBB market (from 7:30 a.m. to6:30 p.m. ET), although quotationswould be required to be firm onlybetween 9:30 a.m. and 4 p.m. Duringthis period, the ODS would becontinuously available for use by anyeligible NASD market maker or order-entry firm. Registered OTCBB marketmakers would be unable to inhibit thereceipt of ODS messages from othereligible NASD members between 9:30a.m. and 4 p.m. ET, and orders receivedwithin a market maker’s quoted priceand size would be considered liabilityorders. Hence, an NASD member wouldbe assured that communication can beestablished with a market marker duringall market conditions and thattransactions can be consummatedwithout reliance on the telephone.

Use of the ODSThe ODS would provide an

alternative medium for retail firms tocontact market makers and for marketmakers to contact one another, tonegotiate trades, and to confirmexecutions regardless of marketconditions just as they do by telephonetoday. The establishment of the ODSwould not impose any additionalobligations beyond those alreadyapplicable to the market maker andNASD member in connection withtelephonic transactions, such as the firmquote and best execution obligations.

Nasdaq has established some basicoperational requirements for the ODS:



(i) An order entered through the ODSmust be preferenced to a market makerin the security.

(ii) Principal as well as agency ordersmay be entered through the ODS.

(iii) All orders entered through theODS must be priced. Therefore, it wouldbe impermissible to enter an order onlywith instructions to execute ‘‘at themarket’’ or ‘‘on the close.’’

(iv) An order entered through the ODSmust include the security’s identifier,price and size (from 100 to 999,900shares); be designated as buy, sell, orsell short; and have a capacity indicator.All orders must be in round lots; thesystem will not accept odd lots.

(v) Orders entered into the ODSwould be in force for a minimum ofthree minutes, unless the entering firmspecifies another time in force ordesignates as a day order. The enteringfirm would be permitted to attempt tocancel an order after ten seconds.

(vi) A market maker receiving anorder through the ODS would havethree minutes to respond with an‘‘accept’’ or ‘‘reject’’ message. Orderrecipients can respond with partialacceptance, as long as the order is notdesignated as All-Or-None. If thereceiving market maker does not actwithin three minutes (or other timeperiod specified by the order entryfirm), the order would be automaticallytimed out and a notification of thatresult sent to the initiating firm.

(vii) The ODS would send a ‘‘pop-up’’message to a market maker’s NWIIterminal alerting the market maker tothe presence of a liability order. Themarket maker would then be obligatedto execute the liability order up to thesize of its quoted price, unless themarket maker is in the process ofexecuting another limit order at thesame price.

(viii) The ODS would prohibit ordersfrom being entered if there is no insidemarket in the security (i.e., there are atleast two market makers with two-sidedquotes).

(ix) If an incoming buy (sell) order ispriced below (above) the recipient’squoted bid/offer, or for an amountexceeding the recipient’s displayed size,the market maker may properly reject it.The rejecting market maker canpromptly communicate a counterproposal for possible acceptance by theinitiating firm. This scenario illustratesthe ability of a market maker tonegotiate an execution by exchangingmessages via the ODS.

(x) Transmission of an ‘‘accept’’message would automatically create andsend a ‘‘locked-in’’ trade to ACT forcomparison and clearing. Tradesconfirmed through the ODS would

automatically generate a printedconfirmation of the execution to bothparties.

(xi) ODS users would have access tothe full functionality of ACT to entercorrective transactions, includingcancel, error, break, no/was, inhibit, andkill (where appropriate under applicabletrade reporting rules).

(xii) Participating market makerswould have the capacity to scantransactions which they have executedthrough the ODS during the course of atrading day.

(xiii) The ODS would automaticallyreject messages involving ineligiblemarket makers or initiating memberfirms.

As outlined above, the ODS wouldallow market participants to follow afew easy steps to enter, negotiate, andaccept orders. To enter an order themarket participant must choose buy,sell, or sell short; enter the share size;enter the security ID; designate a price;indicate whether price and/or size arenegotiable; and specify the duration ofthe order, including (1) leave the orderopen for a minimum of three minutes,(2) make it a day order, or (3) leave itopen until after-hours trading hasended. Market participants can respondto an order in several ways: accept theorder, price improve it, decline it,counter the order, accept a portion ofthe order, or allow the order to expireor time out. When an order is countered,negotiations would begin and theparties would exchange messages untilthey produce a full or partial execution,they decline the transaction, or theorder times out.

After an order is executed, the ODSwould automatically confirm it to bothparties to the transaction; send the tradereport through Nasdaq for publicdissemination; and compare, match, andsend the locked-in trade to a clearingcorporation. All Nasdaq order-entry ormarket maker subscribers would beeligible to participate in the ODS,provided that they have a clearingarrangement with an approved clearingagent.


In its filing with the Commission,Nasdaq included statements concerningthe purpose of and basis for theproposed rule change and discussed anycomments it received on the proposedrule change. The text of these statementsmay be examined at the places specifiedin Item IV below. Nasdaq has preparedsummaries, set forth in Sections A, B,

and C below, of the most significantaspects of such statements.


1. Purpose

Nasdaq states that trading activity inthe OTCBB grew from 41 million sharesand less than 7,000 trades per day in1995 to 323 million shares and 53,000trades per day in 1999. In the firstquarter of 2000, on average, over 1billion shares were traded and 205,000trades were reported each day. Nasdaqbelieves that there are many reasons forthis increase in volume, but chief amongthem is the wealth of OTC informationavailable on the Internet and the growthof online trading systems directlyaccessible to individual investors. Themanual nature of the OTCBB, where allorder delivery, communication, andnegotiation between two firms regardingan OTCBB trade is done via telephone,was a drawback during these periods ofexplosive volume. Nasdaq believes thatexecutions were slower and marketparticipants had difficulty keepingabreast of telephone traffic.

Nasdaq states that the singularpurpose of the ODS enhancement is toexpand the communications facilitiesavailable to support the continuous,orderly operation of the OTCBB duringperiods of heavy trading, such as thoseexperienced periodically during 2000.The ODS would facilitate processing oforders during fast markets, in that itwould supplement the telephonecapacity of market makers to interactwith one another. It would, however,permit NASD members, from afunctional standpoint, to continue toconduct business with one another bycommunicating the same basic elementsof information that are needed tonegotiate and confirm executions viatelephone. The major difference is thatelectronic messages would substitute forverbal messages.

Nasdaq states that the ODS wouldalso enable NASD members to realizecertain efficiencies that are mostdesirable in periods of heavy trading,but unavailable respecting transactionseffected via telephone. For example,consummation of a transaction throughthe ODS would yield a printedconfirmation to both parties to thetransaction and would obivate theseparate entry of a trade report for anexecution in an OTCBB security.Further, because orders executedthrough the ODS would yield locked-intrades, this feature would help reducethe volume of uncompared trades (and



5 See NASD Rules 6530 and 6540.6 See NASD Rule 6545.7 See NASD Rule 6541 (implementation pending).8 15 U.S.C. 78k–1 and 78o–39 15 U.S.C. 78k–1(a)(1)(A) to (D).10 See 15 U.S.C. 78k–1(a)(1)(C).

11 See 15 U.S.C. 78o–3(b)(6).12 Id.

the attendant allocation of resourcesneeded to resolve them) during periodsin which overall market volume surgesdramatically. Nasdaq believes thatinstitution of the ODS wouldsupplement both the communicationsand order processing capabilities ofmember firms.

The NASD Regulation MarketRegulation Department anticipates thatthe ODS would enable it to surveil moreeffectively the OTCBB marketplace.Nasdaq is committed to maintaining ahigh level of regulation in the OTCBBtrading environment. In fact, Nasdaq’smarket surveillance systems and staffwould increase the capacity for real-time monitoring of trading on theOCTBB.

Nasdaq states that the OTCBB hasmade significant strides in makingmeasurable market improvements in thepast three years, including: (1) theimplementation of the Eligibility Rule,which requires each OTCBB issuer to befully registered with the SEC (orappropriate banking or insuranceregulator) and be current in its filings,5(2) the establishment of limited tradinghalt authority for OTCBB securities,6and, (3) the upcoming launch of a LimitOrder Protection pilot program, whichwill prohibit member firms from tradingahead of customer limit orders certainOTCBB securities.7 Nasdaq believes thatproviding automated access to theOTCBB market would further Nasdaq’sefforts to make the OTCBB a moreefficient and orderly marketplace forinvestors and market participants alike.

2. Statutory Basis

Nasdaq believes that the proposal isconsistent with Sections 11A and 15Aof the Act.8 Subsections (A) to (D) ofSection 11A(a)(1) 9 articulate the broadfindings and policy goals whichCongress intended to guide theoperational enhancement of the nation’ssecurities markets. In this context,Congress underscored the importance ofapplying new data processing andcommunications techniques to assure:(1) more efficient and effective marketoperations; (2) economically efficientexecution of securities transactions; (3)broad availability of information withrespect to quotations for andtransactions in securities; and (4) theoptimal execution of investors’ orders.10

The NASD believes that the design andoperation features of the ODS

enhancement comport fully with theseCongressional directives.

Nasdaq believes that the proposal isalso supported by subsection (b)(6) ofSection 15A of the Act.11 Among otherthings, that provision requires that theNASD’s rule-making initiatives bedesigned: (1) to promote just andequitable principles of trade; (2) tofoster cooperation and coordinationwith persons engaged in regulating,clearing settling, processing informationwith respect to, and facilitatingtransactions in securities; (3) to perfectthe mechanism of a free and openmarket and a national market system;and (4) to protect investors and thepublic interest. As described earlier, theODS would augment thecommunications and order-handlingcapacities of market makers in OTCBBsecurities. The NASD views the ODS asan essential, auxiliary communicationssystem that would enable marketmakers to conduct business with oneanother when telephoniccommunications are undesirable due tounusual conditions. Providing such aback-up capability promotes continuityin market operations in order to serviceall classes of investors. Nasdaq believesthat this result is fully consistent withthe above-cited portions of Section15A(b)(6) of the Act.12

B. Self-Regulatory Organization’sStatement on Burden of Competition

Nasdaq states that implementation ofthe ODS would not involve theimposition of any competitive burden.Nasdaq believes that this conclusion issupported by several factors. First, theODS involves an enhancement of thefacilities that support market making inOTCBB securities by member firms.This type of enhancement would notalter the established terms of accessrespecting vendors’ receipt of marketinformation for redistribution to diversegroups of end users. Second, the ODSwould not pose a competitive burdenupon market makers and other eligiblemembers. By design, the ODS would bean auxiliary medium of communicationthat eligible firms may employ toconduct business when telephoniccommunication is not desirable.Accordingly, the ODS has beenstructured to accommodate conveyanceof the same basic elements ofinformation which firms communicatein negotiating and executingtransactions via the telephone. Third,the ODS enhancement would notimpose more stringent market-makingobligations on participating firms.

Rather, it would provide an alternativemechanism for market participants toconduct their routine business. Fourth,firms electing to utilize the ODS wouldneed only to have clearing arrangementsthrough a registered clearing agency thatuses a continuous net settlementsystem, a requirement that exists todayfor trading of OTCBB securities.

Nasdaq believes, therefore, that nocompetitive burden would result fromthe Commission’s approval of this filing.

C. Self-Regulatory Organization’sStatement on Comments on theProposed Rule Change Received fromMembers, Participants, or Others

Written comments were neithersolicited nor received.


Within 35 days of the date ofpublication of this notice in the FederalRegister or within such longer period (i)as the Commission may designate up to90 days of such date if it finds suchlonger period to be appropriate andpublishes its reasons for so finding, or(ii) as to which the Nasdaq consents, theCommission will:

(A) by order approve such proposedrule change; or

(B) institute proceedings to determinewhether the proposed rule changeshould be disapproved.


Interested persons are invited tosubmit written data, views, andarguments concerning the foregoing,including whether the proposed rulechange is consistent with the Act.Persons making written submissionsshould file six copies thereof with theSecretary, Securities and ExchangeCommission, 450 Fifth Street, NW,Washington, DC 20549–0609. Copies ofthe submission, all subsequentamendments, all written statementswith respect to the proposed rulechange that are filed with theCommission, and all writtencommunications relating to theproposed rule change between theCommission and any person, other thanthose that may be withheld from thepublic in accordance with theprovisions of 5 U.S.C. 552, will beavailable for inspection and copying inthe Commission’s Public ReferenceRoom. Copies of such filing will also beavailable for inspection and copying atthe principal office of the NASD. Allsubmissions should refer to File No.SR–NASD –2001–28 and should besubmitted by May 31, 2001.



13 17 CFR 200.30–3(a)(12).1 15 U.S.C. 78s(b)(1).2 17 CFR 240.19b–4.3 15 U.S.C. 78s(b)(3)(A).4 17 CFR 240.19b–4(f)(6). The Exchange filed the

pre-filing notice required by Rule 19b–4(f)(6) byfiling a written description of the proposed rulechange and the text of the proposed rule change onApril 3, 2001.

5 Securities Exchange Act Release No. 42272(December 23, 1999), 65 FR 153 (January 3,2000)(SR–Phlx–99–42). In the approval order, theCommission requested that the Exchange examinethe operation of the Committee to ensure that theCommittee is not dominated by any one Exchangeinterest (e.g., On-Floor or Off-Floor interests). TheCommission requested that the Exchange reportback to the Commission on its views as to whetherthe Committee structure ensures that all Exchangeinterests are fairly represented by the Committee.

6 Securities Exchange Act Release No. 42898(June 5, 2000), 65 FR 36879 (June 12, 2000)(SR–Phlx–00–41), extending the pilot program untilAugust 21, 2000; Securities Exchange Act ReleaseNo. 43169 (August 17, 2000), 65 FR 51888 (August25, 2000)(SR–Phlx–00–76), extending the pilotprogram until November 17, 2000. On July 14, 2000,the Exchange filed a proposed rule change to effectthe amendments on a permanent basis. SR–Phlx–00–63 (filed July 14, 2000). In SR–Phlx–00–63 theExchange also enclosed the Exchange’s views as towhether the Committee structure ensures that allExchange interests are fairly represented by theCommittee. Because the Exchange is consideringchanges to the Committee, the Commission expectsSR–Phlx–00–63 to be withdrawn. In November,2000, the pilot program was extended again untilApril 30, 2001. Securities Exchange Act Release No.43614 (November 22, 2000), 65 FR 75332(December 1, 2000).

7 See Securities Exchange Act Release No. 38960(August 22, 1997), 62 FR 45904 (August 29,1997)(SR–Phlx–97–31).

8 See Securities Exchange Act Release No. 26858(May 22, 1989), 54 FR 23007 (May 30, 1989) (SR–Phlx–88–36).

9 See also Exchange By-Law, Article IV, Section4–2.

10 Previously, the Exchange has described‘‘extraordinary market or emergency conditions’’ as,among other things, a declaration of war, apresidential assassination, an electrical blackout, orevents such as the 1987 market break or otherhighly volatile trading conditions that requireintervention for the market’s continued efficientoperation. Letter dated March 15, 1989, fromWilliam W. Uchimoto, General Counsel, Exchange,to Sharon L. Itkin, Esquire, Commission, Divisionof Market Regulation

11 15 U.S.C. 78f.12 15 U.S.C. 78f(b)(5).

For the Commission, by the Division ofMarket Regulation, pursuant to delegatedauthority.13



[Release No. 34–44245; File No. SR–Phlx–2001–44]

Self-Regulatory Organizations; Noticeof Filing and Immediate Effectivenessof Proposed Rule Change by thePhiladelphia Stock Exchange, Inc.Extending the Pilot Program forExchange Rule 98, EmergencyCommittee Until July 31, 2001

May 1, 2001.Pursuant to Sectiuon19(b)(1) of the

Securities Exchange Act of 1934(‘‘Act’’)1 and Rule 19b–4 thereunder,2notice is hereby given that on April 12,2001, the Philadelphia Stock Exchange,Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed aproposed rule change with theSecurities and Exchange Commission(‘‘SEC’’ or ‘‘Commission’’). Theproposed rule change is described inItems I, II, and III below, which Itemshave been prepared by the Exchange.The Exchange filed the proposed rulechange pursuant to Section 19(b)(3)(A)of the Act,3 and Rule 19b–4(f)(6)thereunder,4 which renders theproposed rule change effective uponfiling with the Commission. TheCommission is publishing this notice tosolicit comments on the proposed rulechange from interested persons.


The Exchange is proposing to extendthe pilot program period for Rule 98,Emergency Committee until July 31,2001. No changes to the existing rulelanguage are being proposed.


In its filing with the Commission, theExchange included statements

concerning the purpose of and basis forthe proposed rule change and discussedany comments it received on theproposed rule change. The text of thesestatements may be examined at theplaces specified in Item IV below. TheExchange has prepared summaries, setforth in Sections A, B, and C below, ofthe most significant aspects of suchstatements.


1. Purpose

On December 23, 1999, theCommission approved amendments toRule 98, Emergency Committee (the‘‘Committee’’), which updated thecomposition of the Committee to reflectthe current governance structure of theExchange, on a 120-day pilot basis.5 Thepilot has been extended three times,most recently to April 30, 2001.6 Thepilot program is being extended again toJuly 31, 2001 as the Exchange considersother changes to the composition of theCommittee.

The Exchange originally proposed toamend Rule 98, Emergency Committee,by updating the composition of theCommittee to correspond with previousrevisions to the Exchange’s governancestructure,7 and by deleting a provisionauthorizing the Committee to takeaction regarding CENTRAMART, anequity order reporting system which is

no longer used on the Exchange EquityFloor.

The Committee was formed in 1989 8

prior to the aforementioned changes tothe Exchange’s governance structure.The original proposed rule change,approved by the Commission, deletedthe word ‘‘President’’ from the rule, asthe Exchange no longer has a‘‘President,’’ and included theExchange’s On-Floor Vice Chairman 9 asa member of the Committee.

Thus, Rule 98 specifies thecomposition of the EmergencyCommittee to include the followingindividuals: the Chairman of the Boardof Governors; the On-Floor viceChairman of the Board of Governors;and the Chairmen of the OptionsCommittee, the Floor ProcedureCommittee, and the Foreign CurrencyOptions Committee.

The staff of the Commission hasrequested that the Exchange file theinstant proposed rule change to extendthe pilot program through July 31, 2001so that the Committee will reflect thecurrent governance structure of theExchange and will be in place to takenecessary and appropriate action torespond to extraordinary marketconditions or other emergencies.10 Theextension of the pilot program will alsoallow the Exchange the necessary timeto propose changes to the Committee’sstructure to meet the Commission’sconcerns about whether the Committeeensures that all interests of theExchange (e.g., On-Floor or Off-Floor)are adequately represented by theCommittee.

2. Statutory BasisThe Exchange believes that the

proposed rule change is consistent withSection 6 11 of the Act in general, andwith Section 6(b)(5) 12 of the Act inspecific, in that it is designed to perfectthe mechanisms of a free and openmarket and a national market system,and to protect investors and the publicinterest, by updating the composition ofthe Emergency Committee to reflect the



13 For purposes only of accelerating the operativedate of this proposal, the Commission hasconsidered the proposed rule’s impact onefficiency, competition, and capital formation. 15U.S.C. 78c(f).

14 15 U.S.C. 78s(b)(3)(A).15 17 CFR 240.19b–4(f)(6).

16 17 CFR 140.19b–4(f)(6).17 17 CFR 200.30–3(a)(12).1 15 U.S.C. 78s(b)(1).2 17 CFR 240.19b–4.

3 The Phlx originally submitted the proposed rulechange on April 2, 2001. On April 18, 2001, thePhlx submitted a new Form 19b–4, which replacesand supersedes the original filing in its entirety. Seeletter from Diana Tenenbaum, Counsel, Phlx, toNancy Sanow, Assistant Director, Division ofMarket Regulation (‘‘Division’’), Commission, datedApril 17, 2001.

4 PACE is the Philadelphia Stock Exchange’sAutomated Communication and Execution System.It is the Exchange’s order routing, delivery,execution, and reporting system for its equitytrading floor. See Phlx Rule 229.

current governance structure of theExchange, and by continuing to providea regular procedure for the Exchange totake necessary and appropriate action torespond to extraordinary marketconditions or other emergencies.13

B. Self-Regulatory Organization’sStatement of Burden on Competition

The Exchange does not believe thatthe proposed rule change will result inany burden on competition that is notnecessary or appropriate in furtheranceof the purposes of the Act.


The Exchange has neither solicitednor received written comments on theproposed rule change.


The foregoing rule change has becomeeffective upon filing pursuant to Section19(b)(3)(A)(iii) of the Act 14 and Rule19b–4(f)(4) 15 thereunder because theproposed rule change does not (i)significantly affect the protection ofinvestors or the public interest; (ii)impose any significant burden oncompetition; and (iii) become operativefor 30 days from the date on which theproposed rule change was filed, or suchshorter time as the Commission maydesignate. At any time within 60 daysof the filing of a rule change pursuantto Section 19(b)(3)(A) of the Act, theCommission may summarily abrogatethe rule change if it appears to theCommission that such action isnecessary or appropriate in the publicinterest, for the protection of investors,or otherwise in furtherance of thepurposes of the Act.

The Commission finds that it isappropriate to accelerate the effectivedate of the proposed rule change and topermit the proposed rule change tobecome immediately effective becausethe proposal simply extends apreviously approved pilot program untilJuly 31, 2001. No changes to Rule 98 arebeing proposed at this time and theCommission has not received anycomments on the pilot program. Inaddition, the Exchange appropriately

filed a pre-filing notice as required byRule 19b–4(f)(6).16


Interested persons are invited tosubmit written data, views, andarguments concerning the foregoing,including whether the proposed rulechange is consistent with the Act.Persons making written submissionsshould file six copies thereof with theSecretary, Securities and ExchangeCommission, 450 Fifth Street, NW.,Washington, DC 20549–0609. Copies ofthe submission, all subsequentamendments, all written statementswith respect to the proposed rulechange that are filed with theCommission, and all writtencommunications relating to theproposed rule change between theCommission and any person, other thanthose that may be withheld from thepublic in accordance with theprovisions of 5 U.S.C. 552, will beavailable for inspection and copying inthe Commission’s Public ReferenceRoom. Copies of such filing will also beavailable for inspection and copying atthe principal office of the Phlx. Allsubmissions should refer to the File No.SR–Phlx–2001–44 and should besubmitted by May 31, 2001.




[Release No. 34–44259; File No. SR–Phlx–2001–41]

Self-Regulatory Organizations; Noticeof Filing and Immediate Effectivenessof a Proposed Rule Change by thePhiladelphia Stock Exchange, Inc.Eliminating Equity Trading FloorSpecialist Fees for the Execution ofPACE Orders on the Opening

May 4, 2001.

Pursuant to Section 19(b)(1) of theSecurities Exchange Act of 1934(‘‘Act’’) 1 and Rule 19b–4 thereunder,2notice is hereby given that on April 18,2001, the Philadelphia Stock Exchange,Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed withthe Securities and Exchange

Commission (‘‘Commission’’) theproposed rule change as described inItems I, II, and III below, which Itemshave been prepared by the Phlx.3 TheCommission is publishing this notice tosolicit comments on proposed rulechange from interested persons.


The Phlx proposes to eliminate equitytrading floor specialist fees for eachPACE transaction for orders enteredbefore the opening of trading.4Specifically, the PACE specialist chargeof $.20 per Phlx specialist trade forPACE executions would be eliminated.

II. Self-Regulatory Organization’sStatement of the Purpose of, and theStatutory Basis for, the Proposed RuleChange

In its filing with the Commission, thePhlx included statements concerningthe purpose of, and basis, for theproposed rule change and discussed anycomments it received on the proposedrule change. The text of these statementsmay be examined at the places specifiedin Item IV below. The Phlx has preparedsummaries, set forth in sections A, Band C below, of the most significantaspects of such statements.

A. Self-Regulatory Organization’sStatement of the Purpose of, and theStatutory Basis for, the Proposed RuleChange

1. PurposeThe purpose of the proposed rule

change is to alleviate fee burdens onspecialists by eliminating specialist feesfor PACE trades executed by thespecialist on the opening. Presently,PACE orders, including those executedon the opening, are charged a PACEspecialist fee of $.20 per trade, inaddition to other costs, such as StockClearing Corporation of Philadelphiatrade processing/clearing fees andSection 31 fees.

Exchange specialists have manyresponsibilities, including themaintenance of fair and orderly markets.Phlx specialists provide PACE ordersspecific guarantees enumerated in Phlx



5 Telephone call between Edith Hallahan, DeputyGeneral Counsel, Phlx, and Sonia Patton, StaffAttorney, Division, Commission (May 1, 2001).

6 15 U.S.C. 78f(b).7 15 U.S.C. 78f(b)(4).8 See Securities Exchange Act Release No. 43343

(Sep. 26, 2000), 65 FR 59243 (Oct. 4, 2000) (SR–Phlx–00–80), regarding a waiver of all comparisonand transaction charges for customers tradingequity options.

9 15 U.S.C. 78s(b)(3)(A)(ii).10 17 CFR 240.19b–4(f)(2).11 17 CFR 200.30–3(a)(12).

Rule 229. The Phlx believes that thespecialist’s role is particularly importanton the opening, where the specialistmust determine the opening price whilebeing mindful of single price openingsin unlisted trading privileges securities,monitor Intermarket Trading Systemindications and commitments, andassess and address order imbalances.The Phlx believes that theseresponsibilities impose unique risks andcosts on specialists. For instance, theautomatic execution feature of PACE isnot engaged until after the opening,5which allows the specialist to bettercontrol the aforementioned duties, butalso imposes unique manual burdens,such as matching against orders on theopening.

Thus, the proposal would eliminatethe Phlx transaction fees imposed onorders on the opening that are receivedthrough PACE and executed manually.The proposed amendment would enablethe specialist to continue to provideprompt execution and participate inopening orders, without the additionalburden of a transaction fee. TheExchange believes that this feereduction should encourage specialists’efforts in attracting more order flow,which in turn should promote a moreliquid market.

2. Statutory Basis

The Exchange believes that theproposed rule change is consistent withSection 6(b) of the Act,6 in general, andwith Section 6(b)(4),7 in particular, inthat they provide for the equitableallocation of reasonable dues, fees andother charges, by alleviating a financialburden on specialists. The Exchangenotes that other equity fees apply onlyto certain market participants, and theExchange has previously waived feeswith respect to certain marketparticipants.8

B. Self-Regulatory Organization’sStatement on Burden on Competition

The Phlx does not believe that theproposed rule change, as amended, willimpose any inappropriate burden oncompetition.


No written comments were eithersolicited or received.


The Exchange has designated theproposed rule change as a fee changepursuant to Section 19(b)(3)(A)(ii) of theAct9 and Rule 19b–4(f)(2) thereunder.10

Accordingly, the proposal will takeeffect upon the filing of the proposedrule change with the Commission onApril 18, 2001. At any time within 60days of the filing of the proposed rulechange, the Commission may summarilyabrogate such rule change if it appearsto the Commission that such action isnecessary or appropriate in the publicinterest, for the protection of investors,or otherwise in furtherance of thepurposes of the Act.

IV. Solicitation of CommentsInterested persons are invited to

submit written data, views andarguments concerning the foregoing,including whether the proposed rulechange, as amended, is consistent withthe Act. Persons making writtensubmissions should file six copiesthereof with the Secretary, Securitiesand Exchange Commission, 450 FifthStreet, NW., Washington, D.C. 20549–0609. Copies of the submission, allsubsequent amendments, all writtenstatements with respect to the proposedrule change that are filed with theCommission, and all writtencommunications relating to theproposed rule change between theCommission and any person, other thanthose that may be withheld from thepublic in accordance with theprovisions of 5 U.S.C. 552, will beavailable for inspection and copying inthe Commission’s Public ReferenceRoom. Copies of such filing will also beavailable for inspection and copying atthe principal office of the Phlx. Allsubmissions should refer to File No.SR–Phlx–2001–41 and should besubmitted by May 31, 2001.



SMALL BUSINESS ADMINISTRATION

Reporting and RecordkeepingRequirements Under OMB Review

AGENCY: Small Business Administration.ACTION: Notice of reporting requirementssubmitted for OMB review.

SUMMARY: Under the provisions of thePaperwork Reduction Act (44 U.S.C.Chapter 35), agencies are required tosubmit proposed reporting andrecordkeeping requirements to OMB forreview and approval, and to publish anotice in the Federal Register notifyingthe public that the agency has madesuch a submission.DATES: Submit comments on or beforeJune 11, 2001. If you intend to commentbut cannot prepare comments promptly,please advise the OMB Reviewer andthe Agency Clearance Officer before thedeadline.

Copies: Request for clearance (OMB83–1), supporting statement, and otherdocuments submitted to OMB forreview may be obtained from theAgency Clearance Officer.ADDRESSES: Address all commentsconcerning this notice to: AgencyClearance Officer, Jacqueline White,Small Business Administration, 409 3rdStreet, SW., 5th Floor, Washington, DC20416; and OMB Reviewer, Office ofInformation and Regulatory Affairs,Office of Management and Budget, NewExecutive Office Building, Washington,DC 20503.FOR FURTHER INFORMATION CONTACT:Jacqueline White, Agency ClearanceOfficer, (202) 205–7044.SUPPLEMENTARY INFORMATION: Title:Notice of Award/GrantCooperativeAgreement Cost Sharing Proposal.

No’s: 1222 and 1224.Frequency: On Occasion.Description of Respondents:

Participating Colleges and GrantsManagement Office.

Annual Responses: 477.Annual Burden: 34,191.

Jacqueline White,Chief, Administrative Information Branch.[FR Doc. 01–11797 Filed 5–9–01; 8:45 am]BILLING CODE 8025–01–P

SOCIAL SECURITY ADMINISTRATION

Agency Information CollectionActivities: Proposed Request andComment Request

The Social Security Administration(SSA) publishes a list of informationcollection packages that will requireclearance by the Office of Management



and Budget (OMB) in compliance withPub. L. 104–13 effective October 1,1995, The Paperwork Reduction Act of1995. SSA is soliciting comments on theaccuracy of the agency’s burdenestimate; the need for the information;its practical utility; ways to enhance itsquality, utility and clarity; and on waysto minimize burden on respondents,including the use of automatedcollection techniques or other forms ofinformation technology.

Written comments andrecommendations regarding theinformation collection(s) should besubmitted to the OMB Desk Officer andthe SSA Reports Clearance Officer andat the following addresses:(OMB) Office of Management and

Budget, Attn: Desk Officer for SSA,New Executive Office Building, Room10230, 725 17th St., NW, Washington,DC 20503

(SSA) Social Security Administration,DCFAM, Attn: Frederick W.Brickenkamp, 1–A–21 OperationsBldg., 6401 Security Blvd., Baltimore,MD 21235I. The information collections listed

below will be submitted to OMB within60 days from the date of this notice.Therefore, your comments should besubmitted to SSA within 60 days fromthe date of this publication. You canobtain copies of the collectioninstruments by calling the SSA ReportsClearance Officer at 410–965–4145, orby writing to him at the address listedabove.

1. Report of Student BeneficiaryAbout to Attain Age 19—0960–0274.The information collected by the SocialSecurity Administration (SSA) on formSSA–1390 is used to determine astudent’s eligibility for Social Security

benefits for those attaining age 19. Theaffected public is comprised of studentbeneficiaries about to attain age 19.

Number of Respondents: 50,000.Frequency of Response: 1.Average Burden Per Response: 5

minutes.Estimated Annual Burden: 4,167

hours.2. Certificate of Coverage Request

Form—0960–0554. The United States(U.S.) has Social Security agreementswith 18 countries. These agreementseliminate double Social Securitycoverage and taxation where a period ofwork would be subject to coverage andtaxes in both countries. The individualagreements contain rules fordetermining the country under whoselaws the period of work will be coveredand to whose system taxes will be paid.The agreements further provide thatupon the request of the worker oremployer, the country under whosesystem the period of work is coveredwill issue a certificate of coverage. Thecertificate serves as proof of exemptionfrom coverage and taxation under thesystem of the other country. Theinformation collected is needed todetermine if a period of work is coveredby the U.S. system under an agreementand to issue a certificate of coverage.The respondents are workers andemployers wishing to establish anexemption from foreign Social Securitytaxes.



hours.3. Medical Report (General)—0960–

0052. The information collected on formSSA–3826–F4 is used by SSA to

determine the claimant’s physical statusprior to making a disabilitydetermination and to document thedisability claims folder with the medicalevidence. The respondents arephysicians, hospitals, directors andmedical records librarians.



hours.4. Representative Payee Evaluation

Report—0960–0069. The information onform SSA–624 is used by SSA toaccurately account for the use of SocialSecurity benefits and SupplementalSecurity Income payments received byrepresentative payees on behalf of anindividual. The respondents areindividuals and organizations whoreceived form SSA–623 or SSA–6230and failed to respond, providedunacceptable responses that could notbe resolved, or reported a change incustody.


minutes.Estimated Average Burden: 125,000

hours.5.Chinese Custom Marriage

Statement; Statement RegardingMarriage—0960–0086. The informationcollected on Forms SSA–1344 and SSA–1345 is used to determine whether thespouse/claimant is (or was) legallymarried to the numberholder for thepurpose of paying Social SecurityBenefits. The respondents areindividuals who were married in aChinese custom marriage.

SSA–1344 SSA–1345

Number of Respondents: ................................................................................................................................................. 10 10Frequency of Response: ................................................................................................................................................. 1 1Average Burden Per Response: ...................................................................................................................................... 1 14 1 14Estimated Annual Burden: ............................................................................................................................................... 2 2.3 2 2.3

1 Minutes.2 Hours.

6. State Agency Ticket AssignmentForm—0960–NEW.

The information collected on thisform will be used by SSA’s contractedProgram Manager (PM) to perform thetask of assigning beneficiaries’ ticketsand monitoring the use of tickets underthe Ticket to Work and Self-SufficiencyProgram. The State VocationalRehabilitation (VR) agency answers thequestions and the beneficiary reviewsthe data and if in agreement will sign

the form acknowledging their Ticketassignment. The respondents are StateVR agencies.

Number of Respondents: 21.Frequency of Response: 4,048

annually per respondent.Average Burden Per Response: 3


hours.Please note that the Ticket to Work

Program is being implemented in stages.The above represents the initial phase of

the program with 13 participating statesthat includes 21 State VR agencies. Asthe program continues to be phased in,each initial program year will result ina large number of new tickets for theparticipating State VRs because existingclients will also be brought into theprogram.

7. Statement for DeterminingContinuing Eligibility, SupplementalSecurity Income Payment—0960–0145—Forms SSA–8202–F6 and SSA–



8202–OCR–SM. SSA uses form SSA–8202–F6 to conduct low-and middle-error-profile (LEP-MEP) telephone orface-to-face redetermination (RZ)interviews with Supplemental SecurityIncome (SSI) recipients andrepresentative payees. The informationcollected during the interview is used to

determine whether SSI recipients havemet and continue to meet all statutoryand regulatory requirements for SSIeligibility and whether they have beenand are still receiving the correctpayment amount. Form SSA–8202–OCR–SM (Optical CharacterRecognition-Self Mailer) collects

information similar to that collected onForm SSA–8202–F6. However it is usedexclusively in LEP RZ cases on a 6-yearcycle. The respondents are recipients ofSSI benefits or their representativepayees.

Respondents Frequencyresponse

Averageburden perresponse(minutes)

Estimatedannualburden(hours)

SSA–8202–F6 .................................................................................................. 920,000 1 18 276,000SSA–8202–OCR–SM ...................................................................................... 800,000 1 9 120,000

Total Burden ............................................................................................. ........................ ........................ ........................ 396,000

8. Statement For DeterminingContinuing Eligibility for SupplementalSecurity Income Payments—0960–0416.SSA uses form SSA–8203–BK for high-error-profile (HEP) redeterminations.The information is normally completedin field offices by personal contact (face-to-face or telephone interview) using theautomated Modernized SSI ClaimSystem (MSSICS). The paper form isused only when a systems limitationprevents the interview from beingcompleted on MSSICS. When the paperform is used, a tear-off sheet (Pages 7and 8 of the form) is given to recipientsat the conclusion of a face-to-faceinterview or is mailed to recipients atthe completion of the telephoneinterview. The tear-off includesinformation about how, what, when,where, and why SSI recipients reportwhen there is a change in income,resources, or living arrangements. Therespondents are recipients of title XVISSI benefits.



hours.9. Summary of Evidence—0960–0430.

The information on Form SSA–887 isused by State Disability DeterminationServices (DDS) to provide claimantswith a list of medical/vocational reportspertaining to their disability. The formwill aid claimants in reviewing theevidence in their folders and will beused by hearing officers in preparing forand conducting hearings. Therespondents are State DDSs that makedisability determinations.



hours.

10. Notice Regarding Substitution ofParty Upon Death of Claimant—Reconsideration of DisabilityCessation—0960–0351. The SocialSecurity Administration uses the formSSA–770 to obtain information fromsubstitute parties regarding theirintention to pursue the appeals processfor an individual who has died. Therespondents are such parties.


minutes.Estimated Annual Burden: 200 hours.II. The information collections listed

below have been submitted to OMB forclearance. Your comments on theinformation collections would be mostuseful if received by OMB and SSAwithin 30 days from the date of thispublication. You can obtain a copy ofthe OMB clearance packages by callingthe SSA Reports Clearance Officer on(410) 965–4145, or by writing to him atthe address listed above.

1. Internet Direct DepositApplication—0960–NEW. SSA usesDirect Deposit/Electronic FundsTransfer (DD/EFT) enrollmentinformation received from beneficiariesto facilitate DD/EFT of their socialsecurity benefits with a financialinstitution. The respondents are SocialSecurity beneficiaries who use theInternet to enroll in DD/EFT.


minutes.Estimated Average Burden: 581 hours.2. Request To Have Supplemental

Security Income Overpayment Withheldfrom My Social Security Benefits—0960–0549. Form SSA–730–U2 is usedby SSA to confirm that a request hasbeen made by a Social Securitybeneficiary for SSA to recover his/herSSI overpayment from title II benefitsand that the request was made

voluntarily by the beneficiary. Therespondents are Social Securitybeneficiaries who received SSIoverpayments.


minutes.Estimated Average Burden: 833 hours.3. Farm Self-Employment

Questionnaire—0960–0061. Section211(a) of the Social Security Actrequires the existence of a trade orbusiness as a prerequisite fordetermining whether an individual orpartnership may have ‘‘net earningsfrom self-employment.’’ Form SSA–7156 elicits the information necessary todetermine the existence of anagricultural trade or business andsubsequent covered earnings for SocialSecurity entitlement purposes. Therespondents are applicants for SocialSecurity benefits whose entitlementdepends on whether the worker hascovered earnings from self-employmentas a farmer.



hours.Dated: May 4, 2001.

Frederick W. Brickenkamp,Reports Clearance Officer.[FR Doc. 01–11753 Filed 5–9–01; 8:45 am]BILLING CODE 4191–02–U

DEPARTMENT OF STATE

[Public Notice 3659]

Culturally Significant Objects Importedfor Exhibition Determinations; ‘‘Mies inBerlin’’

DEPARTMENT: United States Departmentof State.



ACTION: Notice.

SUMMARY: Notice is hereby given of thefollowing determinations: Pursuant tothe authority vested in me by the Act ofOctober 19, 1965 [79 Stat. 985, 22 U.S.C.2459], the Foreign Affairs Reform andRestructuring Act of 1998 [112 Stat.2681 et seq.], Delegation of AuthorityNo. 234 of October 1, 1999 [64 FR56014], and Delegation of Authority No.236 of October 19, 1999 [64 FR 57920],as amended, I hereby determine that theobjects to be included in the exhibit‘‘Mies in Berlin,’’ imported from abroadfor the temporary exhibition withoutprofit within the United States, are ofcultural significance. These objects willbe imported pursuant to loanagreements with foreign lenders. I alsodetermine that the temporary exhibitionor display of the exhibit objects at TheMuseum of Modern Art, in New York,NY, from on or about June 21, 2001, toon or about September 11, 2001, is inthe national interest. Public Notice ofthese determinations is ordered to bepublished in the Federal Register.FOR FURTHER INFORMATION CONTACT: Forfurther information, including a list ofexhibit objects, contact JulianneSimpson, Attorney-Adviser, Office ofthe Legal Adviser, U.S. Department ofState (telephone: 202/619–6529). Theaddress is U.S. Department of State, SA–44, 301 4th Street, SW., Room 700,Washington, DC 20547–0001.

Dated: May 2, 2001.Helena Kane Finn,Acting Assistant Secretary for Educationaland Cultural Affairs, Department of State.[FR Doc. 01–11821 Filed 5–9–01; 8:45 am]BILLING CODE 4710–08–P



Draft Environmental Impact Statement:Evansville, IN and Henderson, KY

AGENCY: Federal HighwayAdministration (FHWA), DOT.

ACTION: Notice of intent.

SUMMARY: The FHWA is issuing thisnotice to advise the public that anEnvironmental Impact Statement (EIS)will be prepared for the proposed I–69corridor in the Evansville, Indiana andHenderson, Kentucky area.FOR FURTHER INFORMATION CONTACT: Mr.Robert Dirks, Environmental Specialist,Federal Highway Administration, 575North Pennsylvania Street, Room 254,Indianapolis, Indiana 46204. Telephone:(317) 226–7492, Fax: (317) 226–7341, e-mail: robert. dirks@fhwa. dot.gov.SUPPLEMENTARY INFORMATION: TheFHWA, in cooperation with the Indianadepartment of Transportation (INDOT),the Kentucky Transportation Cabinet(KYTC) and the Evansville UrbanTransportation Study (EUTS), willprepare an EIS to determine a proposedroute for the I–69 Corridor through theEvansville, Indiana-Henderson,Kentucky area, extending south from I–64 in Indiana to the Pennyrile Parkwayin Kentucky. The proposed facility isanticipated to provide an interstate-typefacility with two lanes in each direction(with the possibility of three lanes ineach direction depending on forecastedtraffic volumes) separated by a median.The study will build upon the previousCorridor 18 studies (the FeasibilityStudy, 1995; the Special Issues Study,1997; and the Special EnvironmentalStudy, 2000), which identified a varietyof environmental and location factorsthat must be considered prior to theconstruction of I–69 as an addition tothe Interstate System. The EIS willdiscuss environmental, social, andeconomic impacts associated with thedeveloment of the proposed action.

Up to five (5) possible conceptualalternatives (including one (1) to theeast and two (2) to the west ofEvansville and Henderson, one (1)incorporating U.S. 41, and one (1)focusing on ITS (IntelligentTransportation Systems) strategies forexisting US 41 and I–164 throughEvansville and Henderson), as well as ano-build alternative, will be examined.The study will identify and consider

potential impacts the project may haveon natural, cultural, historic and otherenvironmental resources. Earlycoordination meetings will be held withfederal, state, regional and localresource agencies. An environmental‘‘footprint’’ will be developed at theoutset of the study, and will be madeavailable at the initial publicinformation meetings. These earlypublic meetings will be held to solicitinput from citizens and local officialsprior to the development of detailedalternatives. A formal scoping meetingwill be scheduled with the appropriateresource agencies to review the purposeand need and the conceptualalternatives to be considered. A secondinteragency meeting will be held toreview the selection of alternatives to beretained for detailed study. A thirdinteragency review meeting will be heldto review the selected action andconceptual mitigation. Utilizing inputfrom these agencies, input received atpublic meetings, and informationobtained from field review, alternativeswill be developed along withpreliminary cost estimates for each ofthe alternatives. This information, alongwith environmental investigations, willbe presented at a second series of publicinformation meetings for review andpublic comment.

Following evaluation of publiccomments, alternatives will be refinedand evaluated, a preferred alternativemay be identified, and a Draft EIS willbe prepared. Public hearings will thenbe held in accordance with all State andFederal requirements. Public notice willbe given of the time and place of thepublic hearings. The Draft EIS will beavailable for public and agency reviewand comment. To ensure that the fullrange of issues related to the proposedaction are addressed and that allsignificant issues are identified,comments and suggestions are invitedfrom all interested parties. Comments orquestions concerning this proposedaction and the EIS should be directed tothe FHWA contact at the addressprovided above.

State contacts FHWA Division contacts

Indiana

Steve Cecil, Deputy Commissioner of Planning and Intermodal Transp.,Indiana Department of Transportation, 100 North Senate Ave., RoomN755, Indianapolis, IN 46204–2249; Phone: 317–232–5535; Fax:317–232–0238; e-mail: [email protected].

John Baxter, Division Administrator, Federal Highway Administration,575 North Pennsylvania St., Room 254, Indianapolis, Indiana 46204;Phone: 317–226–7475; Fax: 317–226–7341; e-mail:[email protected]



State contacts FHWA Division contacts

Kentucky

John Carr, Deputy State Highway Engineer, Kentucky TransportationCabinet, State Office Building, Rm. 1005, 501 High Street, Frankfort,KY 40622; Phone: 502–564–3730; Fax: 502–564–2277; e-mail:[email protected].

Jose Sepulveda, Division Administrator, Federal Highway Administra-tion, 330 W. Broadway, Frankfort, KY 40601; Phone: 502–223–6720;Fax: 502–223–6735; e-mail: [email protected]

(Catalog of Federal Domestic AssistanceProgram No. 20.205, Highway Planning andConstruction. The regulations implementingExecutive Order 12372 regardingintergovernmental consultation on Federalprograms and activities apply to theprogram).

Authority: 23 USC 315; 49 CFR 1.48.

Issued on: May 1, 2001.Robert Dirks,Environmental Specialist, FHWA,Indianapolis, Indiana.[FR Doc. 01–11794 Filed 5–9–01; 8:45 am]BILLING CODE 4910–22–M



Environmental Impact Statement:Wythe County, VA

AGENCY: Federal HighwayAdministration, DOT.ACTION: Notice of intent.

SUMMARY: The Federal HighwayAdministration (FHWA) is issuing thisnotice to advise the public of its intentto prepare an Environmental ImpactStatement in cooperation with theVirginia Department of Transportation(VDOT) for the I–77/I–81 ImprovementProject in Wythe County to addresssafety and capacity issues.FOR FURTHER INFORMATION CONTACT: JohnSimkins, Environmental ProtectionSpecialist, Federal HighwayAdministration, Post Office Box 10249,Richmond, Virginia 23240–0249,Telephone 804–775–3342.SUPPLEMENTARY INFORMATION: TheFederal Highway Administration(FHWA), in cooperation with theVirginia Department of Transportation(VDOT), will prepare an environmentalimpact statement (EIS) for the I–77/I–81Improvement Project in Wythe County.Interstates 77 and 81 currently share acommon corridor for approximatelynine miles from immediately east ofFort Chiswell to the Town ofWytheville. The study area’s limitsbegin just west of I–81 exit 70 andextend east for a distance ofapproximately 15 miles, ending west ofthe I–81 exit 84. The study window’ssouthern limits begin along I–77,

approximately three miles south of theI–77/I–81 interchange. The northernlimits are located near Cove Mountain,north of the I–77/I–81 separation inWytheville.

Recognizing that the NationalEnvironmental Policy Act (NEPA)process requires the consideration of areasonable range of alternatives that willaddress the purpose and need, the EISwill include a range of alternatives forstudy consisting of a no-buildalternative as well as alternativesconsisting of transportation systemmanagement strategies, mass transit,improvements to existing roadways,and/or new alignment facilities. Thesealternatives will be developed,screened, and carried forward foranalysis in the draft EIS based on theirability to address the purpose and needthat will be developed while avoidingknown and sensitive resources.

The scoping process is currentlyunderway. Scoping letters describingthe proposed study and soliciting inputare being sent to the appropriateFederal, State and local agencies whohave expressed or are known to have aninterest or legal role in this proposal.Private organizations, citizens, andinterest groups also will have anopportunity to provide input into thedevelopment of the EIS and identifyissues that should be addressed. Noformal scoping meeting is planned atthis time.

A series of public informationalmeetings and a public hearing will beheld. Notices of public meetings orpublic hearings will be given throughvarious forums providing the time andplace of the meeting along with otherrelevant information. The draft EIS willbe available for public and agencyreview and comment prior to the publichearing.

To ensure that the full range of issuesrelated to this proposed action areidentified and taken into account,comments and input are invited from allinterested parties. Comments andquestions concerning the proposedaction and draft EIS should be directedto FHWA at the address provided above.(Catalog of Federal Domestic AssistanceProgram Number 20.205, Highway Planningand Construction. The regulationsimplementing Executive Order 12372

regarding intergovernmental consultation onFederal programs and activities apply to thisproposed action.)

Authority: 23 U.S.C. 315; 49 CFR 1.48

Issued on: May 3, 2001.John Simkins,Environmental Protection Specialist.[FR Doc. 01–11795 Filed 5–9–01; 8:45 am]BILLING CODE 4910–22–M


National Highway Traffic SafetyAdministration

Annual List of Defect andNoncompliance Decisions AffectingNonconforming Imported Vehicles

AGENCY: National Highway TrafficSafety Administration (NHTSA), DOT.ACTION: Annual list of defect andnoncompliance decisions affectingnonconforming imported vehicles.

SUMMARY: This document contains a listof vehicles recalled by theirmanufacturers during Calendar Year2000 (January 1, 2000 through December31, 2000) to correct a safety-relateddefect or a noncompliance with anapplicable Federal motor vehicle safetystandard (FMVSS). The listed vehiclesare those that have been decided byNHTSA to be substantially similar tovehicles imported into the United Statesthat were not originally manufactured toconform to all applicable FMVSS. Theregistered importers of thosenonconforming vehicles are obligated toprovide their owners with notificationof, and a remedy for, the defects ornoncompliances for which the listedvehicles were recalled.FOR FURTHER INFORMATION CONTACT:George Entwistle, Office of VehicleSafety Compliance, NHTSA (202–366–5306).SUPPLEMENTARY INFORMATION: Under 49U.S.C. 30141(a)(1)(A), a motor vehiclethat was not originally manufactured toconform to all applicable Federal motorvehicle safety standards (FMVSS) shallbe refused admission into the UnitedStates unless NHTSA has decided thatthe motor vehicle is substantiallysimilar to a motor vehicle of the samemodel year that was originally



manufactured for importation into andsale in the United States and certifiedunder 49 U.S.C. 30115. Once NHTSAdecides that a nonconforming vehicle iseligible for importation, it may beimported by a person who is registeredwith the agency pursuant to 49 U.S.C.30141(c). Before releasing the vehiclefor use on public streets, roads, orhighways, the registered importer mustcertify to NHTSA, pursuant to 49 U.S.C.30146(a), that the vehicle has beenbrought into conformity with allapplicable FMVSS.

If a vehicle originally manufacturedfor importation into and sale in theUnited States is decided to contain adefect related to motor vehicle safety, ornot to comply with an applicableFMVSS, 49 U.S.C. 30147(a)(1)(A)provides that the same defect or

noncompliance is deemed to exist inany nonconforming vehicle that NHTSAhas decided to be substantially similarand for which a registered importer hassubmitted a certificate of conformity tothe agency. Under 49 U.S.C.30147(a)(1)(B), the registered importer isdeemed to be the nonconformingvehicle’s manufacturer for the purposeof providing notification of, and aremedy for, the defect ornoncompliance.

To apprise registered importers of thevehicles for which they must conduct anotification and remedy (i.e., ‘‘recall’’)campaign, 49 U.S.C. 30147(a)(2)requires NHTSA to publish in theFederal Register notice of any defect ornoncompliance decision that is madewith respect to substantially similarU.S. certified vehicles. Annex A

contains a list of all such decisions thatwere made during Calendar Year 2000.The list identifies the Recall Numberthat was assigned to the recall byNHTSA after the agency received themanufacturer’s notification of the defector noncompliance under 49 CFR Part573. After December 31, 2001, NHTSAwill publish a comparable list of alldefect and noncompliance decisionsaffecting nonconforming importedvehicles that are made during thecurrent calendar year.

Authority: 49 U.S.C. 30147(a)(2); 49 CFR593.8; delegations of authority at 49 CFR 1.50and 501.8.

Issued on: May 7, 2001.Marilynne Jacobs,Director Office of Vehicle Safety, Compliance.

ANNEX A

CALENDAR YEAR 2000 RECALLS AFFECTING VEHICLES IMPORTED BY REGISTERED IMPORTERS

Make Model Year Recall No.

AUDI .................................................................................. A6 ..................................................................................... 2000 00V137000BLUE BIRD ....................................................................... TC2000 ............................................................................. 1993 00V321000BMW ................................................................................. 323I .................................................................................. 2000 00V048000BMW ................................................................................. 540I .................................................................................. 2000 00V048000BMW ................................................................................. K1200RS .......................................................................... 1998 00V264000BMW ................................................................................. K1200RS .......................................................................... 1998 00V266000BMW ................................................................................. M5 .................................................................................... 2000 00V048000BMW ................................................................................. X5 ..................................................................................... 2000 00V010000BMW ................................................................................. X5 ..................................................................................... 2001 00V261000BMW ................................................................................. X5 ..................................................................................... 2001 00V341000BUICK ............................................................................... CENTURY ........................................................................ 1998 99V356000BUICK ............................................................................... CENTURY ........................................................................ 1999 99V356000BUICK ............................................................................... CENTURY ........................................................................ 2000 00V143000BUICK ............................................................................... CENTURY ........................................................................ 2000 00V160000BUICK ............................................................................... CENTURY ........................................................................ 2000 00V228003BUICK ............................................................................... CENTURY ........................................................................ 2000 00V371000BUICK ............................................................................... CENTURY ........................................................................ 2001 00V228003BUICK ............................................................................... CENTURY ........................................................................ 2001 00V371000BUICK ............................................................................... LESABRE ......................................................................... 2000 00V114000BUICK ............................................................................... LESABRE ......................................................................... 2000 99V355000BUICK ............................................................................... PARK AVENUE ................................................................ 1997 00V117000BUICK ............................................................................... PARK AVENUE ................................................................ 1998 00V117000BUICK ............................................................................... REGAL ............................................................................. 1989 00V189000BUICK ............................................................................... REGAL ............................................................................. 1990 00V189000BUICK ............................................................................... REGAL ............................................................................. 1991 00V189000BUICK ............................................................................... REGAL ............................................................................. 1995 00V171000BUICK ............................................................................... REGAL ............................................................................. 1998 99V356000BUICK ............................................................................... REGAL ............................................................................. 1999 99V356000BUICK ............................................................................... REGAL ............................................................................. 2000 00V143000BUICK ............................................................................... REGAL ............................................................................. 2000 00V160000BUICK ............................................................................... REGAL ............................................................................. 2000 00V228003BUICK ............................................................................... REGAL ............................................................................. 2000 00V371000BUICK ............................................................................... RIVIERA ........................................................................... 1995 00V057000CADILLAC ......................................................................... DEVILLE ........................................................................... 2000 00V021000CADILLAC ......................................................................... DEVILLE ........................................................................... 2000 00V114000CADILLAC ......................................................................... ESCALADE ...................................................................... 1999 00V122000CADILLAC ......................................................................... ESCALADE ...................................................................... 1999 00V153000CADILLAC ......................................................................... ESCALADE ...................................................................... 2000 00V153000CADILLAC ......................................................................... SEVILLE ........................................................................... 2000 00V114000CHEVROLET .................................................................... BLAZER ........................................................................... 1998 00V202000CHEVROLET .................................................................... BLAZER ........................................................................... 2000 00V228003CHEVROLET .................................................................... BLAZER ........................................................................... 2001 00V228003CHEVROLET .................................................................... CAVALIER ........................................................................ 1998 00V053000CHEVROLET .................................................................... CAVALIER ........................................................................ 2000 00V201000CHEVROLET .................................................................... CORVETTE ...................................................................... 1997 00V111000CHEVROLET .................................................................... CORVETTE ...................................................................... 1998 00V111000CHEVROLET .................................................................... CORVETTE ...................................................................... 1999 00V111000CHEVROLET .................................................................... CORVETTE ...................................................................... 2000 00V111000



CALENDAR YEAR 2000 RECALLS AFFECTING VEHICLES IMPORTED BY REGISTERED IMPORTERS—Continued


CHEVROLET .................................................................... EXPRESS ........................................................................ 1999 00V085000CHEVROLET .................................................................... EXPRESS ........................................................................ 2000 00V085000CHEVROLET .................................................................... IMPALA ............................................................................ 2000 00V228003CHEVROLET .................................................................... IMPALA ............................................................................ 2000 00V371000CHEVROLET .................................................................... IMPALA ............................................................................ 2001 00V228003CHEVROLET .................................................................... IMPALA ............................................................................ 2001 00V244000CHEVROLET .................................................................... IMPALA ............................................................................ 2001 00V371000CHEVROLET .................................................................... LUMINA ............................................................................ 1990 00V189000CHEVROLET .................................................................... LUMINA ............................................................................ 1991 00V189000CHEVROLET .................................................................... MONTE CARLO ............................................................... 2000 00V228003CHEVROLET .................................................................... MONTE CARLO ............................................................... 2001 00V228003CHEVROLET .................................................................... MONTE CARLO ............................................................... 2001 00V244000CHEVROLET .................................................................... S10 ................................................................................... 1997 00V069000CHEVROLET .................................................................... S10 ................................................................................... 1997 00V069200CHEVROLET .................................................................... S10 ................................................................................... 1997 00V159000CHEVROLET .................................................................... S10 ................................................................................... 1998 00V159000CHEVROLET .................................................................... S10 ................................................................................... 1998 00V202000CHEVROLET .................................................................... S10 ................................................................................... 2000 00V228003CHEVROLET .................................................................... S10 ................................................................................... 2000 00V258001CHEVROLET .................................................................... S10 ................................................................................... 2001 00V228003CHEVROLET .................................................................... SILVERADO ..................................................................... 1999 00X001000CHEVROLET .................................................................... SILVERADO ..................................................................... 2000 00V055000CHEVROLET .................................................................... SILVERADO ..................................................................... 2000 00X001000CHEVROLET .................................................................... SUBURBAN ..................................................................... 1999 00V122000CHEVROLET .................................................................... SUBURBAN ..................................................................... 2000 00V222000CHEVROLET .................................................................... SUBURBAN ..................................................................... 2000 00V343000CHEVROLET .................................................................... SUBURBAN ..................................................................... 2001 00V343000CHEVROLET .................................................................... TAHOE ............................................................................. 1999 00V122000CHEVROLET .................................................................... TAHOE ............................................................................. 2000 00V343000CHEVROLET .................................................................... TAHOE ............................................................................. 2001 00V343000CHEVROLET .................................................................... VENTURE ........................................................................ 2000 00V228003CHEVROLET .................................................................... VENTURE ........................................................................ 2001 00V228003CHRYSLER ....................................................................... 300M ................................................................................ 1999 00V034000CHRYSLER ....................................................................... 300M ................................................................................ 2000 00V033000CHRYSLER ....................................................................... 300M ................................................................................ 2000 00V034000CHRYSLER ....................................................................... 300M ................................................................................ 2000 00V366000CHRYSLER ....................................................................... 300M ................................................................................ 2001 00V366000CHRYSLER ....................................................................... CIRRUS ............................................................................ 2000 00V196000CHRYSLER ....................................................................... CIRRUS ............................................................................ 2000 00V366000CHRYSLER ....................................................................... CONCORDE .................................................................... 1999 00V034000CHRYSLER ....................................................................... CONCORDE .................................................................... 2000 00V180000CHRYSLER ....................................................................... CONCORDE .................................................................... 2000 00V366000CHRYSLER ....................................................................... LHS .................................................................................. 1999 00V034000CHRYSLER ....................................................................... LHS .................................................................................. 2000 00V033000CHRYSLER ....................................................................... LHS .................................................................................. 2000 00V034000CHRYSLER ....................................................................... LHS .................................................................................. 2000 00V366000CHRYSLER ....................................................................... PT CRUISER ................................................................... 2001 00V366000CHRYSLER ....................................................................... SEBRING ......................................................................... 2001 00V299002CHRYSLER ....................................................................... SEBRING ......................................................................... 2001 00V306000CHRYSLER ....................................................................... SEBRING ......................................................................... 2001 00V320002CHRYSLER ....................................................................... SEBRING ......................................................................... 2001 00V366000DODGE ............................................................................. CARAVAN ........................................................................ 1993 00V305000DODGE ............................................................................. CARAVAN ........................................................................ 1994 00V305000DODGE ............................................................................. DAKOTA ........................................................................... 1991 00V106000DODGE ............................................................................. DAKOTA ........................................................................... 1992 00V106000DODGE ............................................................................. DAKOTA ........................................................................... 1997 00V193000DODGE ............................................................................. DAKOTA ........................................................................... 1997 00V198000DODGE ............................................................................. DAKOTA ........................................................................... 1997 00V199000DODGE ............................................................................. DAKOTA ........................................................................... 1998 00V193000DODGE ............................................................................. DAKOTA ........................................................................... 1998 00V198000DODGE ............................................................................. DAKOTA ........................................................................... 1999 00V193000DODGE ............................................................................. DAKOTA ........................................................................... 1999 00V198000DODGE ............................................................................. DAKOTA ........................................................................... 2000 00V193000DODGE ............................................................................. DAKOTA ........................................................................... 2000 00V197000DODGE ............................................................................. DAKOTA ........................................................................... 2000 00V198000DODGE ............................................................................. DAKOTA ........................................................................... 2001 00V366000DODGE ............................................................................. DURANGO ....................................................................... 2001 00V366000DODGE ............................................................................. GRAND CARAVAN .......................................................... 1993 00V305000DODGE ............................................................................. GRAND CARAVAN .......................................................... 1994 00V305000DODGE ............................................................................. INTREPID ......................................................................... 1999 00V034000DODGE ............................................................................. INTREPID ......................................................................... 2000 00V033000DODGE ............................................................................. INTREPID ......................................................................... 2000 00V034000





DODGE ............................................................................. INTREPID ......................................................................... 2000 00V180000DODGE ............................................................................. INTREPID ......................................................................... 2000 00V366000DODGE ............................................................................. INTREPID ......................................................................... 2001 00V366000DODGE ............................................................................. NEON ............................................................................... 2000 00V194000DODGE ............................................................................. NEON ............................................................................... 2000 00V366000DODGE ............................................................................. NEON ............................................................................... 2001 00V366000DODGE ............................................................................. NEON ............................................................................... 2001 00V415000DODGE ............................................................................. RAM ................................................................................. 1994 00V135000DODGE ............................................................................. RAM ................................................................................. 1995 00V135000DODGE ............................................................................. RAM ................................................................................. 1996 00V135000DODGE ............................................................................. RAM ................................................................................. 1998 00V107000DODGE ............................................................................. RAM ................................................................................. 1999 00V107000DODGE ............................................................................. RAM ................................................................................. 2000 00V007000DODGE ............................................................................. RAM ................................................................................. 2000 00V107000DODGE ............................................................................. RAM ................................................................................. 2001 00V307000DODGE ............................................................................. RAM ................................................................................. 2001 00V366000DODGE ............................................................................. STRATUS ......................................................................... 2000 00V196000DODGE ............................................................................. STRATUS ......................................................................... 2000 00V366000DODGE ............................................................................. VIPER ............................................................................... 2000 00V366000DODGE ............................................................................. VIPER ............................................................................... 2001 00V366000FERRARI .......................................................................... 360 MODENA .................................................................. 1999 00V078000FERRARI .......................................................................... 360 MODENA .................................................................. 1999 00V098000FERRARI .......................................................................... 360 MODENA .................................................................. 1999 00V099000FERRARI .......................................................................... 360 MODENA .................................................................. 1999 00V340000FERRARI .......................................................................... 360 MODENA .................................................................. 2000 00V340000FERRARI .......................................................................... 360 MODENA F1 ............................................................. 1999 00V098000FERRARI .......................................................................... 360 MODENA F1 ............................................................. 1999 00V099000FERRARI .......................................................................... 360 MODENA F1 ............................................................. 1999 00V340000FERRARI .......................................................................... 360 MODENA F1 ............................................................. 2000 00V340000FORD ................................................................................ CONTOUR ....................................................................... 1996 00V075000FORD ................................................................................ CONTOUR ....................................................................... 1997 00V075000FORD ................................................................................ CONTOUR ....................................................................... 1998 00V075000FORD ................................................................................ CONTOUR ....................................................................... 1998 00V350000FORD ................................................................................ CONTOUR ....................................................................... 1999 00V075001FORD ................................................................................ CONTOUR ....................................................................... 1999 00V350000FORD ................................................................................ CROWN VICTORIA ......................................................... 1996 00V157001FORD ................................................................................ CROWN VICTORIA ......................................................... 1996 00V157002FORD ................................................................................ CROWN VICTORIA ......................................................... 1997 00V157001FORD ................................................................................ CROWN VICTORIA ......................................................... 1997 00V157002FORD ................................................................................ CROWN VICTORIA ......................................................... 1998 00V157001FORD ................................................................................ CROWN VICTORIA ......................................................... 1998 00V157002FORD ................................................................................ CROWN VICTORIA ......................................................... 1998 00V200000FORD ................................................................................ CROWN VICTORIA ......................................................... 1999 00V157001FORD ................................................................................ CROWN VICTORIA ......................................................... 1999 00V157002FORD ................................................................................ CROWN VICTORIA ......................................................... 1999 00V200000FORD ................................................................................ CROWN VICTORIA ......................................................... 2000 00V157001FORD ................................................................................ CROWN VICTORIA ......................................................... 2000 00V157002FORD ................................................................................ CROWN VICTORIA ......................................................... 2000 00V200000FORD ................................................................................ CROWN VICTORIA ......................................................... 2001 00V270000FORD ................................................................................ CROWN VICTORIA ......................................................... 2001 00V412000FORD ................................................................................ E350 ................................................................................. 1999 00V115000FORD ................................................................................ E350 ................................................................................. 2000 00V115000FORD ................................................................................ ECONOLINE .................................................................... 1999 00V115000FORD ................................................................................ ECONOLINE .................................................................... 2000 00V115000FORD ................................................................................ ESCAPE ........................................................................... 2001 00V210001FORD ................................................................................ ESCAPE ........................................................................... 2001 00V223001FORD ................................................................................ ESCAPE ........................................................................... 2001 00V260001FORD ................................................................................ ESCAPE ........................................................................... 2001 00V277001FORD ................................................................................ ESCAPE ........................................................................... 2001 00V387002FORD ................................................................................ ESCORT .......................................................................... 2000 00V228001FORD ................................................................................ EXPEDITION .................................................................... 1997 00V073000FORD ................................................................................ EXPEDITION .................................................................... 1997 00V168000FORD ................................................................................ EXPEDITION .................................................................... 1998 00V073000FORD ................................................................................ EXPEDITION .................................................................... 1998 00V168000FORD ................................................................................ EXPEDITION .................................................................... 1999 00V073000FORD ................................................................................ EXPEDITION .................................................................... 2000 00V073000FORD ................................................................................ EXPLORER ...................................................................... 1995 00V402000FORD ................................................................................ EXPLORER ...................................................................... 1996 00V402000FORD ................................................................................ EXPLORER ...................................................................... 1997 00V168000FORD ................................................................................ EXPLORER ...................................................................... 1997 00V402000FORD ................................................................................ EXPLORER ...................................................................... 1998 00V168000FORD ................................................................................ EXPLORER ...................................................................... 1999 00V072000





FORD ................................................................................ EXPLORER ...................................................................... 2000 00V072000FORD ................................................................................ EXPLORER ...................................................................... 2000 00V179000FORD ................................................................................ EXPLORER ...................................................................... 2000 00V228001FORD ................................................................................ F150 ................................................................................. 1997 00V168000FORD ................................................................................ F150 ................................................................................. 1997 00V231000FORD ................................................................................ F150 ................................................................................. 1998 00V168000FORD ................................................................................ F150 ................................................................................. 2000 00V228001FORD ................................................................................ F150 ................................................................................. 2001 00V348000FORD ................................................................................ F250 ................................................................................. 1997 00V231000FORD ................................................................................ F250 ................................................................................. 2000 00V228001FORD ................................................................................ FOCUS ............................................................................. 2000 00V218000FORD ................................................................................ FOCUS ............................................................................. 2000 00V302000FORD ................................................................................ FOCUS ............................................................................. 2000 00V303000FORD ................................................................................ FOCUS ............................................................................. 2000 00V411000FORD ................................................................................ MUSTANG ....................................................................... 1994 00V349000FORD ................................................................................ MUSTANG ....................................................................... 1995 00V349000FORD ................................................................................ MUSTANG ....................................................................... 1996 00V349000FORD ................................................................................ MUSTANG ....................................................................... 1997 00V349000FORD ................................................................................ MUSTANG ....................................................................... 1998 00V349000FORD ................................................................................ MUSTANG ....................................................................... 1999 00V349000FORD ................................................................................ MUSTANG ....................................................................... 2000 00V349000FORD ................................................................................ MUSTANG ....................................................................... 2001 00V349000FORD ................................................................................ MUSTANG GT ................................................................. 2000 00V355000FORD ................................................................................ NAVIGATOR .................................................................... 1998 00V168000FORD ................................................................................ RANGER .......................................................................... 2000 00V228001FORD ................................................................................ TAURUS ........................................................................... 2000 00V242000FORD ................................................................................ TAURUS ........................................................................... 2001 00V240000FORD ................................................................................ WINDSTAR ...................................................................... 1996 00V168000FORD ................................................................................ WINDSTAR ...................................................................... 1997 00V168000FORD ................................................................................ WINDSTAR ...................................................................... 1998 00V168000FORD ................................................................................ WINDSTAR ...................................................................... 2000 00V020000FORD ................................................................................ WINDSTAR ...................................................................... 2000 00V164000FORD ................................................................................ WINDSTAR ...................................................................... 2000 00V228001FORD ................................................................................ WINDSTAR ...................................................................... 2001 00V270000FORD ................................................................................ WINDSTAR ...................................................................... 2001 00V412000FREIGHTLINER ................................................................ ARGOSY .......................................................................... 2000 00V081000FREIGHTLINER ................................................................ ARGOSY .......................................................................... 2000 00V082000FREIGHTLINER ................................................................ ARGOSY .......................................................................... 2000 00V232002FREIGHTLINER ................................................................ CENTURY ........................................................................ 1997 00V232002FREIGHTLINER ................................................................ CENTURY ........................................................................ 2000 00V081000FREIGHTLINER ................................................................ CENTURY ........................................................................ 2000 00V131004FREIGHTLINER ................................................................ CENTURY ........................................................................ 2000 00V232002FREIGHTLINER ................................................................ STERLING ....................................................................... 1999 00V232002GMC .................................................................................. DENALI ............................................................................ 1999 00V122000GMC .................................................................................. JIMMY .............................................................................. 2000 00V228003GMC .................................................................................. SAVANA ........................................................................... 1999 00V085000GMC .................................................................................. SAVANA ........................................................................... 2000 00V085000GMC .................................................................................. SIERRA ............................................................................ 1999 00X001000GMC .................................................................................. SIERRA ............................................................................ 2000 00V055000GMC .................................................................................. SIERRA ............................................................................ 2000 00X001000GMC .................................................................................. SONOMA ......................................................................... 1998 00V220000GMC .................................................................................. SONOMA ......................................................................... 2000 00V258001GMC .................................................................................. SUBURBAN ..................................................................... 1999 00V122000GMC .................................................................................. SUBURBAN ..................................................................... 2000 00V222000GMC .................................................................................. YUKON ............................................................................. 1999 00V122000GMC .................................................................................. YUKON ............................................................................. 2000 00V343000GMC .................................................................................. YUKON ............................................................................. 2001 00V343000GMC .................................................................................. YUKON XL ....................................................................... 2000 00V343000GMC .................................................................................. YUKON XL ....................................................................... 2001 00V343000HONDA ............................................................................. ACCORD .......................................................................... 2000 00V184000HONDA ............................................................................. CBR929RR ....................................................................... 2000 00V257000HONDA ............................................................................. ODYSSEY ........................................................................ 1999 00V119000HONDA ............................................................................. ODYSSEY ........................................................................ 1999 00V183000HONDA ............................................................................. ODYSSEY ........................................................................ 2000 00V119000HONDA ............................................................................. ODYSSEY ........................................................................ 2000 00V183000HONDA ............................................................................. S2000 ............................................................................... 2000 00V016000HONDA ............................................................................. S2000 ............................................................................... 2000 00V316000HYUNDAI .......................................................................... ELANTRA ......................................................................... 2000 00V259001HYUNDAI .......................................................................... ELANTRA ......................................................................... 2000 00V259002HYUNDAI .......................................................................... TIBURON ......................................................................... 1997 00V095002INFINITI ............................................................................. QX4 .................................................................................. 2001 00V410000INTERNATIONAL ............................................................. 2000 ................................................................................. 1999 00V176000





INTERNATIONAL ............................................................. 2000 ................................................................................. 1999 00V232001INTERNATIONAL ............................................................. 2000 ................................................................................. 1999 00V246105INTERNATIONAL ............................................................. 2000 ................................................................................. 1999 00V246205INTERNATIONAL ............................................................. 9200 ................................................................................. 1999 00V149000INTERNATIONAL ............................................................. 9300 ................................................................................. 1998 00V149000INTERNATIONAL ............................................................. 9300 ................................................................................. 1999 00V149000INTERNATIONAL ............................................................. 9400 ................................................................................. 2000 00V149000INTERNATIONAL ............................................................. 9900 ................................................................................. 2000 00V149000JAGUAR ............................................................................ S–TYPE ............................................................................ 2000 00V228004JAGUAR ............................................................................ S–TYPE ............................................................................ 2000 00V359002JEEP ................................................................................. CHEROKEE ..................................................................... 1996 00V136000JEEP ................................................................................. CHEROKEE ..................................................................... 1997 00V105000JEEP ................................................................................. CHEROKEE ..................................................................... 1997 00V136000JEEP ................................................................................. CHEROKEE ..................................................................... 1998 00V105000JEEP ................................................................................. CHEROKEE ..................................................................... 1998 00V136000JEEP ................................................................................. CHEROKEE ..................................................................... 1999 00V105000JEEP ................................................................................. CHEROKEE ..................................................................... 1999 00V136000JEEP ................................................................................. CHEROKEE ..................................................................... 2001 00V366000JEEP ................................................................................. GRAND CHEROKEE ....................................................... 1996 00V136000JEEP ................................................................................. GRAND CHEROKEE ....................................................... 1997 00V136000JEEP ................................................................................. GRAND CHEROKEE ....................................................... 1998 00V136000JEEP ................................................................................. GRAND CHEROKEE ....................................................... 1999 00V034000JEEP ................................................................................. GRAND CHEROKEE ....................................................... 2000 00V034000JEEP ................................................................................. GRAND CHEROKEE ....................................................... 2000 00V195000JEEP ................................................................................. GRAND CHEROKEE ....................................................... 2001 00V366000JEEP ................................................................................. WRANGLER ..................................................................... 2001 00V366000KAWASAKI ....................................................................... NINJA ............................................................................... 2000 00V365000KAWASAKI ....................................................................... NINJA ............................................................................... 2000 00V384000LAND ROVER ................................................................... RANGE ROVER ............................................................... 1999 00V142001LINCOLN ........................................................................... LS ..................................................................................... 2000 00V359001LINCOLN ........................................................................... LS ..................................................................................... 2001 00V359001LINCOLN ........................................................................... NAVIGATOR .................................................................... 1997 00V073000LINCOLN ........................................................................... NAVIGATOR .................................................................... 1998 00V073000LINCOLN ........................................................................... NAVIGATOR .................................................................... 1999 00V073000LINCOLN ........................................................................... NAVIGATOR .................................................................... 2000 00V073000LINCOLN ........................................................................... TOWN CAR ...................................................................... 1996 00V157001LINCOLN ........................................................................... TOWN CAR ...................................................................... 1996 00V157002LINCOLN ........................................................................... TOWN CAR ...................................................................... 1997 00V157001LINCOLN ........................................................................... TOWN CAR ...................................................................... 1997 00V157002LINCOLN ........................................................................... TOWN CAR ...................................................................... 1998 00V157001LINCOLN ........................................................................... TOWN CAR ...................................................................... 1998 00V157002LINCOLN ........................................................................... TOWN CAR ...................................................................... 1998 00V200000LINCOLN ........................................................................... TOWN CAR ...................................................................... 1999 00V157001LINCOLN ........................................................................... TOWN CAR ...................................................................... 1999 00V157002LINCOLN ........................................................................... TOWN CAR ...................................................................... 1999 00V200000LINCOLN ........................................................................... TOWN CAR ...................................................................... 2000 00V157001LINCOLN ........................................................................... TOWN CAR ...................................................................... 2000 00V157002LINCOLN ........................................................................... TOWN CAR ...................................................................... 2000 00V200000LINCOLN ........................................................................... TOWN CAR ...................................................................... 2000 00V228001LINCOLN ........................................................................... TOWN CAR ...................................................................... 2000 00V368000MACK ................................................................................ CH .................................................................................... 1990 00V019003MACK ................................................................................ CH .................................................................................... 1993 00V019003MACK ................................................................................ MR .................................................................................... 1999 00V230003MAZDA .............................................................................. 626 ................................................................................... 1994 99V358000MAZDA .............................................................................. 626 ................................................................................... 1998 00V134000MAZDA .............................................................................. MIATA .............................................................................. 1995 00V004000MAZDA .............................................................................. MIATA .............................................................................. 1999 00V032000MAZDA .............................................................................. MPV .................................................................................. 2000 00V113001MAZDA .............................................................................. MX6 .................................................................................. 1994 99V358000MAZDA .............................................................................. PROTEGE ........................................................................ 1995 00V118000MAZDA .............................................................................. PROTEGE ........................................................................ 1999 00V301000MAZDA .............................................................................. TRIBUTE .......................................................................... 2001 00V210002MAZDA .............................................................................. TRIBUTE .......................................................................... 2001 00V223002MAZDA .............................................................................. TRIBUTE .......................................................................... 2001 00V260002MAZDA .............................................................................. TRIBUTE .......................................................................... 2001 00V277002MAZDA .............................................................................. TRIBUTE .......................................................................... 2001 00V387001MERCURY ........................................................................ COUGAR .......................................................................... 1999 00V075001MERCURY ........................................................................ COUGAR .......................................................................... 2000 00V075001MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1996 00V157001MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1996 00V157002MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1997 00V157001MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1997 00V157002





MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1998 00V157001MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1998 00V157002MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1998 00V200000MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1999 00V157001MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1999 00V157002MERCURY ........................................................................ GRAND MARQUIS .......................................................... 1999 00V200000MERCURY ........................................................................ GRAND MARQUIS .......................................................... 2000 00V157001MERCURY ........................................................................ GRAND MARQUIS .......................................................... 2000 00V157002MERCURY ........................................................................ GRAND MARQUIS .......................................................... 2000 00V200000MERCURY ........................................................................ MYSTIQUE ....................................................................... 1996 00V075000MERCURY ........................................................................ MYSTIQUE ....................................................................... 1997 00V075000MERCURY ........................................................................ MYSTIQUE ....................................................................... 1998 00V075000MERCURY ........................................................................ VILLAGER ........................................................................ 1999 00V292001MITSUBISHI ...................................................................... MONTERO ....................................................................... 1992 00V311001NAVISTAR ........................................................................ 2674 ................................................................................. 1999 00V022000NISSAN ............................................................................. FRONTIER ....................................................................... 2000 00V288000NISSAN ............................................................................. QUEST ............................................................................. 1999 00V292002NISSAN ............................................................................. SENTRA ........................................................................... 1996 00V063000NISSAN ............................................................................. XTERRA ........................................................................... 2000 00V288000OLDSMOBILE ................................................................... ALERO ............................................................................. 1999 00V140000OLDSMOBILE ................................................................... ALERO ............................................................................. 2000 00V140000OLDSMOBILE ................................................................... AURORA .......................................................................... 1995 00V057000OLDSMOBILE ................................................................... AURORA .......................................................................... 2001 00V114000OLDSMOBILE ................................................................... CUTLASS SUPREME ...................................................... 1995 00V171000OLDSMOBILE ................................................................... CUTLASS SUPREME ...................................................... 1996 00V171000OLDSMOBILE ................................................................... INTRIGUE ........................................................................ 1998 00V044000OLDSMOBILE ................................................................... INTRIGUE ........................................................................ 1999 00V044000OLDSMOBILE ................................................................... INTRIGUE ........................................................................ 2000 00V114000OLDSMOBILE ................................................................... INTRIGUE ........................................................................ 2000 00V228003OLDSMOBILE ................................................................... SILHOUETTE ................................................................... 2000 00V228003OLDSMOBILE ................................................................... SILHOUETTE ................................................................... 2001 00V228003PETERBILT ....................................................................... 320 ................................................................................... 1999 00V027000PLYMOUTH ...................................................................... GRAND VOYAGER ......................................................... 1993 00V305000PLYMOUTH ...................................................................... GRAND VOYAGER ......................................................... 1994 00V305000PLYMOUTH ...................................................................... PROWLER ....................................................................... 2000 00V366000PLYMOUTH ...................................................................... VOYAGER ........................................................................ 1993 00V305000PLYMOUTH ...................................................................... VOYAGER ........................................................................ 1994 00V305000PONTIAC .......................................................................... BONNEVILLE ................................................................... 2000 00V114000PONTIAC .......................................................................... GRAND AM ...................................................................... 1999 00V140000PONTIAC .......................................................................... GRAND AM ...................................................................... 2000 00V116000PONTIAC .......................................................................... GRAND AM ...................................................................... 2000 00V140000PONTIAC .......................................................................... GRAND PRIX ................................................................... 1989 00V189000PONTIAC .......................................................................... GRAND PRIX ................................................................... 1991 00V189000PONTIAC .......................................................................... GRAND PRIX ................................................................... 2000 00V228003PONTIAC .......................................................................... GRAND PRIX ................................................................... 2001 00V228003PONTIAC .......................................................................... MONTANA ....................................................................... 2000 00V228003PONTIAC .......................................................................... MONTANA ....................................................................... 2001 00V228003PORSCHE ........................................................................ 911 ................................................................................... 1999 00V109000PORSCHE ........................................................................ 911 ................................................................................... 2000 00V109000PORSCHE ........................................................................ 911 CARRERA ................................................................. 1999 00V109000PREVOST ......................................................................... H3–40 ............................................................................... 1992 00V389000PREVOST ......................................................................... H3–41 ............................................................................... 1997 00V389000PREVOST ......................................................................... H3–41 ............................................................................... 1998 00V389000PREVOST ......................................................................... H3–45 ............................................................................... 1997 00V389000PREVOST ......................................................................... H3–45 ............................................................................... 1998 00V389000PREVOST ......................................................................... H3–45 ............................................................................... 1999 00V133000PREVOST ......................................................................... H3–45 ............................................................................... 1999 00V389000PREVOST ......................................................................... H3–45 ............................................................................... 1999 00V407001PREVOST ......................................................................... H3–45 ............................................................................... 2000 00V133000PREVOST ......................................................................... H3–45 ............................................................................... 2000 00V342000PREVOST ......................................................................... H3–45 ............................................................................... 2000 00V389000SUZUKI ............................................................................. SIDEKICK ......................................................................... 1997 00V008000TOYOTA ........................................................................... AVALON ........................................................................... 2000 00V154000TOYOTA ........................................................................... CAMRY ............................................................................ 2000 00V154000TOYOTA ........................................................................... CAMRY ............................................................................ 2000 00V252000TOYOTA ........................................................................... COROLLA ........................................................................ 2000 00V252000TOYOTA ........................................................................... ECHO ............................................................................... 2000 00V252000TOYOTA ........................................................................... ECHO ............................................................................... 2000 00V256000TOYOTA ........................................................................... SOLARA ........................................................................... 2000 00V154000TOYOTA ........................................................................... TACOMA .......................................................................... 2000 00V252000TOYOTA ........................................................................... TUNDRA .......................................................................... 2000 00V103000VOLKSWAGEN ................................................................. EUROVAN ........................................................................ 1993 00V039000





VOLKSWAGEN ................................................................. GOLF ................................................................................ 2000 00V280000VOLKSWAGEN ................................................................. GOLF ................................................................................ 2001 00V280000VOLVO .............................................................................. ACL .................................................................................. 1997 00V002002VOLVO .............................................................................. S80 ................................................................................... 1999 00V238000VOLVO .............................................................................. S80 ................................................................................... 2000 00V238000VOLVO .............................................................................. V70 ................................................................................... 2000 00V239000VOLVO .............................................................................. VN .................................................................................... 1999 00V246106VOLVO .............................................................................. WCL ................................................................................. 1989 00V019001VOLVO .............................................................................. WIA ................................................................................... 1993 00V019001



National Highway Traffic SafetyAdministration

[Docket No. NHTSA–2001–9620]

RIN 2127–AH98

Federal Motor Vehicle SafetyStandards; Head Restraints; Review:Effectiveness of Head Restraints inLight Trucks; Evaluation Report

AGENCY: National Highway TrafficSafety Administration (NHTSA),Department of Transportation.ACTION: Request for comments ontechnical report.

SUMMARY: This notice announcesNHTSA’s publication of a TechnicalReport reviewing and evaluating itsexisting Safety Standard 202, HeadRestraints. The report’s title is TheEffectiveness of Head Restraints in LightTrucks.DATES: Comments must be received nolater than September 7, 2001.ADDRESSES: Report: You may obtain acopy of the report free of charge bysending a self-addressed mailing label toPublications Ordering and DistributionServices (NAD–51), National HighwayTraffic Safety Administration, 400Seventh Street, SW., Washington, DC20590. A summary of the report isavailable on the Internet for viewing online at www.nhtsa.dot.gov/cars/rules/regrev/evaluate/809247.html. The fullreport is available on the Internet inPDF format at www.nhtsa.dot.gov/cars/rules/regrev/evaluate/pdf/809247.pdf.

Comments: All comments shouldrefer to the Docket number of this notice(NHTSA–2001–9620). You may submityour comments in writing to: U. S.Department of Transportation DocketManagement, Room PL–401, 400Seventh Street, SW., Washington, DC20590. You may also submit yourcomments electronically by logging onto

the Dockets Management Systemwebsite at http://dms.dot.gov. Click on‘‘Help & Information’’ or ‘‘Help/Info’’ toobtain instructions for filing thedocument electronically.

You may call Docket Management at202–366–9324 and visit the Docket from10 a.m. to 5 p.m., Monday throughFriday.

FOR FURTHER INFORMATION CONTACT:Charles J. Kahane, Chief, EvaluationDivision, NPP–22, Plans and Policy,National Highway Traffic SafetyAdministration, Room 5208, 400Seventh Street, SW., Washington, DC20590. Telephone: 202–366–2560. FAX:202–366–2559. E-mail:[email protected].

For information about NHTSA’sevaluations of the effectiveness ofexisting regulations and programs: Visitthe NHTSA web site at http://www.nhtsa.dot.gov and click‘‘Regulations & Standards’’ underneath‘‘Car Safety’’ on the home page; thenclick ‘‘Regulatory Evaluation’’ on the‘‘Regulations & Standards’’ page.

SUPPLEMENTARY INFORMATION: FederalMotor Vehicle Safety Standard 202 hasrequired head restraints in frontoutboard positions for all carsmanufactured January 1, 1969 and later,for sale in the United States. TheNational Highway Traffic SafetyAdministration extended the standardto include light trucks (pickup trucks,vans, and sport utility vehicles withGross Vehicle Weight Rating less than10,000 pounds) as of September 1, 1991.

NHTSA’s 1982 evaluation of headrestraints in passenger cars estimated a13 percent overall reduction in injuriesto drivers in rear impacts. The currentevaluation, based on data from eightstates (Florida, Indiana, Maryland,Missouri, North Carolina, Pennsylvania,Texas, and Utah) estimates that headrestraints reduced overall injury risk inlight trucks in rear impacts by astatistically significant 6 percent.

How Can I Influence NHTSA’sThinking on This Evaluation?

NHTSA welcomes public review ofthe technical report and invitesreviewers to submit comments about thedata and the statistical methods used inthe analyses. NHTSA will submit to theDocket a response to the comments and,if appropriate, additional analyses thatsupplement or revise the technicalreport.

How Do I Prepare and SubmitComments?

Your comments must be written andin English. To ensure that yourcomments are correctly filed in theDocket, please include the Docketnumber of this document (NHTSA–2001–9318) in your comments.

Your primary comments must not bemore than 15 pages long (49 CFR553.21). However, you may attachadditional documents to your primarycomments. There is no limit on thelength of the attachments.

Please send two paper copies of yourcomments to Docket Management orsubmit them electronically. The mailingaddress is U. S. Department ofTransportation Docket Management,Room PL–401, 400 Seventh Street, SW.,Washington, DC 20590. If you submityour comments electronically, log ontothe Dockets Management Systemwebsite at http://dms.dot.gov and clickon ‘‘Help & Information’’ or ‘‘Help/Info’’to obtain instructions.

We also request, but do not requireyou to send a copy to Marie Walz,Evaluation Division, NPP–22, NationalHighway Traffic Safety Administration,Room 5208, 400 Seventh Street, SW.,Washington, DC 20590 (alternatively,FAX to 202–366–5377 or e-mail [email protected]). She can checkif your comments have been received atthe Docket and she can expedite theirreview by NHTSA.

How Can I Be Sure That My CommentsWere Received?

If you wish Docket Management tonotify you upon its receipt of your



1 On April 24, 2001, BNSF and UP filed a petitionfor exemption in STB Finance Docket No. 34036(Sub-No. 1), The Burlington Northern and Santa FeRailway Company—Trackage Rights Exemption—Union Pacific Railroad Company, wherein BNSFand UP request that the Board permit the proposedoverhead trackage rights arrangement described inthe present proceeding to expire on August 8, 2001.That petition will be addressed by the Board in aseparate decision.

comments, enclose a self-addressed,stamped postcard in the envelopecontaining your comments. Uponreceiving your comments, DocketManagement will return the postcard bymail.

How Do I Submit Confidential BusinessInformation?

If you wish to submit any informationunder a claim of confidentiality, sendthree copies of your completesubmission, including the informationyou claim to be confidential businessinformation, to the Chief Counsel, NCC–01, National Highway Traffic SafetyAdministration, Room 5219, 400Seventh Street, SW., Washington, DC20590. Include a cover letter supplyingthe information specified in ourconfidential business informationregulation (49 CFR Part 512).

In addition, send two copies fromwhich you have deleted the claimedconfidential business information toDocket Management, Room PL–401, 400Seventh Street, SW., Washington, DC20590, or submit them electronically.

Will The Agency Consider LateComments?

In our response, we will consider allcomments that Docket Managementreceives before the close of business onthe comment closing date indicatedabove under DATES. To the extentpossible, we will also considercomments that Docket Managementreceives after that date.

Please note that even after thecomment closing date, we will continueto file relevant information in theDocket as it becomes available. Further,some people may submit late comments.Accordingly, we recommend that youperiodically check the Docket for newmaterial.

How Can I Read The CommentsSubmitted By Other People?

You may read the comments byvisiting Docket Management in personat Room PL–401, 400 Seventh Street,SW., Washington, DC from 10 a.m. to 5p.m., Monday through Friday.

You may also see the comments onthe Internet by taking the followingsteps:

1. Go to the Docket ManagementSystem (DMS) Web page of theDepartment of Transportation (http://dms.dot.gov).

2. On that page, click on ‘‘search.’’3. On the next page ((http://

dms.dot.gov/search/) type in the four-digit Docket number shown at thebeginning of this Notice (6545). Click on‘‘search.’’

4. On the next page, which containsDocket summary information for theDocket you selected, click on thedesired comments. You may alsodownload the comments.

Authority: 49 U.S.C. 30111, 30168;delegation of authority at 49 CFR 1.50 and501.8.

William H. Walsh,Associate Administrator for Plans and Policy.[FR Doc. 01–11748 Filed 5–9–01; 8:45 am]BILLING CODE 4910–59–P


Surface Transportation Board

[STB Finance Docket No. 34036]

The Burlington Northern and Santa FeRailway Company—Trackage RightsExemption—Union Pacific RailroadCompany

Union Pacific Railroad Company (UP)has agreed to grant overhead trackagerights to The Burlington Northern andSanta Fe Railway Company (BNSF) overUP’s rail line on the Black Butte andValley Subdivisions between KlamathFalls, OR, in the vicinity of UP’smilepost 428.7 and Binney Junction(Marysville), CA, in the vicinity of UP’smilepost 141.9, a distance of 285 miles.BNSF will operate its own trains withits own crews over UP’s line under thetrackage rights agreement.1

The transaction was scheduled to beconsummated on or shortly after May 1,2001.

The purpose of the trackage rights isto allow BNSF to bridge its train servicewhile BNSF’s main line is out of servicefor maintenance.

As a condition to this exemption, anyemployees affected by the trackagerights will be protected by theconditions imposed in Norfolk andWestern Ry. Co.—Trackage Rights—BN,354 I.C.C. 605 (1978), as modified inMendocino Coast Ry., Inc.—Lease andOperate, 360 I.C.C. 653 (1980).

This notice is filed under 49 CFR1180.2(d)(7). If it contains false ormisleading information, the exemptionis void ab initio. Petitions to revoke theexemption under 49 U.S.C. 10502(d)may be filed at any time. The filing of

a petition to revoke will notautomatically stay the transaction.

An original and 10 copies of allpleadings, referring to STB FinanceDocket No. 34036, must be filed withthe Surface Transportation Board, Officeof the Secretary, Case Control Unit, 1925K Street, NW., Washington, DC 20423–0001. In addition, one copy of eachpleading must be served on YolandaGrimes Brown, The Burlington Northernand Santa Fe Railway Company, 2500Lou Menk Drive, P.O. Box 961039, FortWorth, TX 76161–0039.

Board decisions and notices areavailable on our website at‘‘WWW.STB.DOT.GOV.’’

Decided: May 2, 2001.By the Board, David M. Konschnik,

Director, Office of Proceedings.Vernon A. Williams,Secretary.[FR Doc. 01–11681 Filed 5–9–01; 8:45 am]BILLING CODE 4915–00–P



May 3, 2001.The Department of the Treasury has

submitted the following publicinformation collection requirement(s) toOMB for review and clearance under thePaperwork Reduction Act of 1995,Public Law 104–13. Copies of thesubmission(s) may be obtained bycalling the Treasury Bureau ClearanceOfficer listed. Comments regarding thisinformation collection should beaddressed to the OMB reviewer listedand to the Treasury DepartmentClearance Officer, Department of theTreasury, Room 2110, 1425 New YorkAvenue, NW., Washington, DC 20220.DATES: Written comments should bereceived on or before June 11, 2001 tobe assured of consideration.

Departmental Offices/Office ofFinancial Institutions Policy

OMB Number: 1505–0178.Form Number: None.Type of Review: Extension.Title: Community Adjustment and

Investment Program Grant Agreement.Description: The Department of the

Treasury (Treasury), as Chair of theinter-agency committee established byExecutive Order No. 12916, dated May13, 1994, is sponsoring the NorthAmerican Development Bank’s(NADBank) collection of financial andproject performance information fromNADBank grantees. Respondents will beState and Local Governments,



Institutions of Higher Education, andNon-Profit Organizations. NADBankdisburses grants using moniestransferred from the Treasury. Theinformation collected will be used toverify grantee compliance with theterms of the Grant Agreement enteredinto between NADBank and eachgrantee.

Respondents: Not-for-profitinstitutions, State, Local or Tribal.

Estimated Number of Respondents/Recordkeepers: 18.

Estimated Burden Hours PerRespondent/Recordkeeper: 126 hours.

Frequency of Response: On occasion,Quarterly, Annually.

Estimated Total Reporting/Recordkeeping Burden: 414 hours.

Clearance Officer: Lois K. Holland(202) 622–1563, Departmental Offices,Room 2110, 1425 New York Avenue,NW., Washington, DC 20220.

OMB Reviewer: Alexander T. Hunt(202) 395–7860, Office of Managementand Budget, Room 10202, New

Executive Office Building, Washington,DC 20503.

Mary A. Able,Departmental Reports, Management Officer.[FR Doc. 01–11742 Filed 5–9–01; 8:45 am]




May 3, 2001.

The Department of Treasury hassubmitted the following publicinformation collection requirement(s) toOMB for review and clearance under thePaperwork Reduction Act of 1995,Public Law 104–13. Copies of thesubmission(s) may be obtained bycalling the Treasury Bureau ClearanceOfficer listed. Comments regarding thisinformation collection should beaddressed to the OMB reviewer listedand to the Treasury DepartmentClearance Officer, Department of the

Treasury, Room 2110, 1425 New YorkAvenue, NW., Washington, DC 20220.DATES: Written comments should bereceived on or before June 11, 2001 tobe assured of consideration.

Internal Revenue Service (IRS)

OMB Number: 1545–0134.Form Number: IRS Form 1128.Type of Review: Extension.Title: Application to Adopt, Change,

or Retain a Tax Year.Description: Form 1128 is needed in

order to process taxpayers’ requests tochange their tax year. All informationrequested is used to determine whetherthe application should be approved.Respondents are taxable and nontaxableentities including individuals,partnerships, corporations, estates, tax-exempt organizations and cooperatives.

Respondents: Business or other for-profit, Individuals or households, Not-for-profit institutions, Farms.

Estimated Number of Respondents/Recordkeepers: 11,800.

Estimated Burden Hours PerRespondent/Recordkeeper:

Form Recordkeeping Learning about the law or the formPreparing, copying, assem-bling and sending the forms

to the IRS

Form 1128, Parts I and II .................. 8 hr., 36 min .................................... 6 hr., 34 min .................................... 6 hr., 59 min.Form 1128, Parts I and III ................. 20 hr., 48 min .................................. 5 hr., 25 min .................................... 7 hr., 12 min.

Frequency of Response: On occasion.Estimated Total Reporting/

Recordkeeping Burden: 361,720 hours.OMB Number: 1545–0200.Form Number: IRS Form 5307.Type of Review: Extension.Title: Application for Determination

for Adopters of Master or Prototype,Regional Prototype or Volume SubmitterPlans.

Description: This form is filed byemployers or plan administrators whohave adopted a master or prototype planapproved by the IRS National Office orregional prototype plan approved by theIRS District Director to obtain a rulingthat the plan adopted is qualified underInternal Revenue Code (IRC) sections401(a) and 501(a). It may not be used torequest a letter for multiple employerplan.

Respondents: Business or other for-profit.


Estimated Burden Hours PerRespondent/Recordkeeper:Recordkeeping—5 hr., 15 min.Learning about the law or the form—4

hr., 9 min.Preparing the form—8 hr., 9 min.Copying, assembling, and sending the

form to the IRS—1 hr., 4 min.Frequency of Response: On occasion.Estimated Total Reporting/

Recordkeeping Burden: 726,570 hours.OMB Number: 1545–0704.Form Number: IRS Form 5471 and

Related Schedules.Type of Review: Extension.

Title: Information Return of U.S.Persons with Respect to Certain ForeignCorporations.

Description: Form 5471 and relatedschedules are used by U.S. persons thathave an interest in a foreign corporation.The form is used to report income fromthe foreign corporation. The form andschedules are used to satisfy thereporting requirements of sections 6035,6038 and the regulations thereunderpertaining to the involvement of U.S.persons with certain foreigncorporations.

Respondents: Business or other for-profit, Individuals or households.


Estimated Burden Hours PerRespondent/Recordkeeper:

Form/schedule Recordkeeping Learning about the law or the formPreparing, copying, assem-bling and sending the form

to the IRS

5471 ................................................... 82 hr., 45 min .................................. 15 hr., 50 min .................................. 23 hr., 53 min.Schedule J (5471) .............................. 3 hr., 49 min .................................... 1 hr., 29 min .................................... 1 hr., 37 min.Schedule M (5471) ............................ 26 hr., 33 min .................................. 6 min ................................................ 32 min.



1 Ohio Rev. Code Ann. § 4517.2 12 U.S.C. 24 (Seventh) and 12 U.S.C. 24 (Tenth).

Form/schedule Recordkeeping Learning about the law or the formPreparing, copying, assem-bling and sending the form

to the IRS

Schedule N (5471) ............................. 8 hr., 22 min .................................... 2 hr., 28 min .................................... 2 hr., 43 min.Schedule O (5471) ............................. 10 hr., 45 min .................................. 24 min .............................................. 35 min.

Frequency of Response: Annually.Estimated Total Reporting/

Recordkeeping Burden: 6,665,205 hours.OMB Number: 1545–0954.Form Number: IRS Form 1120–ND.Type of Review: Extension.Title: Return for Nuclear

Decommissioning Funds and CertainRelated Persons.

Description: A nuclear utility filesForm 1120–ND to report the income andtaxes of a fund set up by the publicutility to provide cash for dismantling ofthe nuclear power plant. The IRS usesForm 1120–ND to determine if the fundincome taxes are correctly computedand if a person related to the fund or thenuclear utility must pay taxes on self-dealing.


Estimated Number of Respondents/Recordkeepers: 100.


hr., 7 min.Preparing the form—5 hr., 30 min.Copying, assembling, and sending the

form to the IRS—32 min.Frequency of Response: Annually.Estimated Total Reporting/

Recordkeeping Burden: 3,235 hours.OMB Number: 1545–1038.Form Number: IRS Form 8703.Type of Review: Extension.Title: Annual Certification of a

Residential Rental Project.Description: Operators of qualified

residential projects will use to certifyannually that their projects meet therequirements of Internal Revenue Code(IRC) section 142(d). Operators arerequired to file this certification undersection 142(d)(7).




hr., 17 min.Preparing and sending the form to the

IRS—1 hr., 24 min.Frequency of Response: Annually.

Estimated Total Reporting/Recordkeeping Burden: 39,180 hours.

OMB Number: 1545–1189.Form Number: IRS Form 8819.Type of Review: Extension.Title: Dollar Election Under Section

985.Description: Form 8819 is filed by

U.S. and foreign businesses to elect theU.S. dollar as their functional currencyor as the functional currency of theircontrolled entities. The IRS uses Form8819 to determine if the election isproperly made.




hr., 17 min.Preparing and sending the form to the

IRS—1 hr., 23 min.Frequency of Response: On occasion.Estimated Total Reporting/

Recordkeeping Burden: 8,340 hours.Clearance Officer: Garrick Shear,

Internal Revenue Service, Room 5244,1111 Constitution Avenue, NW.,Washington, DC 20224.

OMB Reviewer: Alexander T. Hunt(202) 395–7860, Office of Managementand Budget, Room 10202, NewExecutive Office Building, Washington,DC 20503.

Lois K. Holland,Departmental Reports, Management Officer.[FR Doc. 01–11822 Filed 5–9–01; 8:45 am]BILLING CODE 4830–01–P


Office of the Comptroller of theCurrency

[Docket No. 01–09]

Preemption Opinion

AGENCY: Office of the Comptroller of theCurrency, Treasury.ACTION: Notice.

SUMMARY: The Office of the Comptrollerof the Currency (OCC) is publishing itsresponse to a written request for the

OCC’s opinion of whether Federal lawwould preempt certain provisions ofOhio law that limit the ability ofnational banks to engage in the businessof leasing automobiles. The OCC hasdetermined that the state lawprovisions, as applied, would bepreempted under Federal law.FOR FURTHER INFORMATION CONTACT:MaryAnn Nash, Senior Attorney, orMark Tenhundfeld, Assistant Director,Legislative and Regulatory ActivitiesDivision, (202) 874–5090.SUPPLEMENTARY INFORMATION: Therequest for a preemption opinion wassubmitted by two national banks thatengage in the business of motor vehicleleasing in Ohio (collectively, theRequester). As part of that business, theRequester disposes of vehicles thatcome off lease at the end of the leaseterm or as a result of early terminationor the lessor’s default. The Requesterseeks to sell these vehicles directly tothe public in order to obtain the highestprice.

On November 12, 1993, the Registrarof the Ohio Bureau of Motor Vehicles(OBMV) issued a memorandumconcluding that section 4517 of theOhio Revised Code 1 prohibits thepublic sale of reclaimed leased vehicles.The memorandum interpreted Ohio lawto permit direct sales to the public inthe case of repossessed vehicles, butthen concluded that vehicles reclaimedfrom a lessor for non-payment were notconsidered repossessed vehicles. As aresult of this interpretation, reclaimedleased vehicles can only be sold atwholesale to persons licensed undersection 4517 as ‘‘dealers.’’

The Requester has asked for the OCC’sopinion on whether the National BankAct would preempt section 4517 asinterpreted by the OBMV. The NationalBank Act authorizes national banks toengage in leasing activities consistentwith the provisions of 12 CFR 23.2 TheRequester asserts that this authorityincludes the authority to dispose ofreclaimed or off-lease vehicles in themanner that is economically mostbeneficial. The Requester further assertsthat the OBMV’s construction of Ohio



3 12 U.S.C. 43.

4 The Banks state that selling reclaimedautomobiles directly to the public nets the Bankson average $1500 more per vehicle than selling thevehicles at wholesale auctions, that is auctions inwhich only automobile dealers participate. Arguingin support of the Banks’ position, one commentersuggested that this differential is supported by ananalysis of prices in the November 2000 edition ofthe Black Book National Auto Research OfficialUsed Car Market Guide Monthly.

5 The OBMV memorandum appears to interpretsection 4517 of the Ohio Revised Code. That sectiongenerally provides that no person shall—

Engage in the business of offering for sale,displaying for sale, or selling at retail or wholesaleused motor vehicles or assume to engage in thatbusiness, unless the person is licensed as a dealerunder sections 4517.01 to 4517.45 of the RevisedCode, or is a salesperson licensed under thosesections and employed by a licensed used motorvehicle dealer or licensed new motor vehicledealer.’’

Ohio Rev. Code Ann. § 4517.02(A)(2)(Anderson1999).

The law provides an exception for ‘‘mortgageesselling at retail only those motor vehicles that havecome into their possession by a default in the termsof the mortgage contract.’’ Ohio Rev. Code Ann.§ 4517.02(A)(2)(Anderson 1999). Ohio law providesno similar exception for reclaimed leased vehicles.

6 65 FR 63916 (October 25, 2000) (the Notice). Asstated in the Notice, section 114 of the Riegle-NealInterstate Banking and Branching Efficiency Act of1994 (Pub. L. 103–328, sec. 114, 108 Stat. 2338,2366–68 (1994), codified at 12 U.S.C. 43) requiresthe OCC to publish notice in the Federal Registerbefore issuing a final written opinion about thepreemptive effect of Federal law in the areas ofcommunity reinvestment, consumer protection, fair

lending, and the establishment of interstatebranches. The OCC decided to publish the noticeand invite comments on the issues raised in yourletter without making a determination as to whethersection 114 applies to your request.

7 Your letter does not indicate on which sourceof authority the Banks rely in conducting theleasing activities in question.

law impairs its ability to exercise itsFederally authorized power.

Section 114 of the Riegle-NealInterstate Banking and BranchingEfficiency Act of 1994 generally requiresthe OCC to publish notice in the FederalRegister requests for preemptionopinions in one of the four specifiedareas: community reinvestment,consumer protection, fair lending, or theestablishment of intrastate branches.3Section 114 also requires the OCC topublish any final opinion letter inwhich the OCC concludes that federallaw preempts a state law in one of thesefour areas. Without expresslydetermining whether section 114applied to this request, the OCCpublished a Notice of Request forPreemption Determination datedOctober 16, 2000. The OCC ispublishing its response to the request asan appendix to this notice.

As is explained in greater detail in theresponse, the OCC agrees that nationalbanks, as part of their authority toengage in the business of leasingautomobiles under 12 U.S.C. 24(Seventh) and 12 U.S.C. 24 (Tenth) maysell reclaimed or off-lease vehicles inthe manner that is most economicallybeneficial. The OCC further agrees thatthe Ohio law, as interpreted by theOBMV, would be preempted, because itwould frustrate the ability of nationalbanks to operate their leasing businessesin an economically efficient mannerconsistent with safe and sound bankingprinciples.

Dated: May 2, 2001.John D. Hawke, Jr.,Comptroller of the Currency.

Appendix

May 3, 2001.Thomas A. Plant, Senior Vice President,

Assistant General Counsel, National CityBank, 1900 East Ninth Street, Cleveland,Ohio 44114–3484.

Re: Request for Preemption DeterminationDear Mr. Plant:

This responds to your letter datedSeptember 14, 2000, filed on behalf ofNational City Bank, Cleveland, Ohio andNational City Bank of Indiana, Indianapolis,Indiana (the Banks). The Banks are wholly-owned subsidiaries of National CityCorporation, a financial holding companyheadquartered in Cleveland, Ohio. In thatletter, you request our opinion on whetherFederal law would preempt certainprovisions of Ohio law that limit the mannerin which reclaimed leased vehicles may besold. For the reasons discussed below, it isour opinion that Federal law would preemptthose provisions.

Background

The Banks are engaged in the business ofleasing automobiles. As part of the leasingbusiness, the Banks dispose of vehicles thatcome off lease at the end of the lease termor as a result of early termination or thelessor’s default. The Banks want to disposeof these vehicles in the manner they believewill result in the highest sales price in orderto avoid or limit the losses taken on returnedvehicles. The Banks assert that sellingreclaimed automobiles directly to the publicat auction typically yields the best price.4

On November 12, 1993, the Ohio Bureau ofMotor Vehicles (the OBMV) issued amemorandum that effectively prohibited thepublic sale of reclaimed leased vehicles. TheOBMV interpreted Ohio law to permit directsales to the public only in the case ofrepossessed vehicles.5 The memorandumspecifically states that leased vehiclesreclaimed from the lessor for non-paymentare not considered repossessed vehicles.Since the issuance of that memorandum, theBanks have been required to sell theirreclaimed or off-lease vehicles only atwholesale auctions to dealers licensed underOhio law.

The Banks assert that the OBMV’sconstruction of the Ohio law to prohibitpublic sales of reclaimed lease vehiclesimpairs their ability to exercise their leasingauthority. The Banks have asked the OCC forits opinion on whether the National Bank Actpreempts chapter 4517 of the Ohio RevisedCode as interpreted by the OBMV.

On October 25, 2000, the OCC publisheda notice of your request in the FederalRegister (Notice),6 inviting interested parties

to comment on whether federal law preemptsthe Ohio law. The OCC received sevencomments in response to the Notice. Sixcommenters opined that Federal lawpreempts the type of state law in question.One commenter asserted that it does not.Each of the commenters who thought thatfederal law preempts the Ohio law cited theauthority of national banks under 12 U.S.C.24 (Seventh) to engage in leasing activitiesand noted that Federal law preempts statelaws that purport to restrict an activity thatis authorized by Federal law. Severalcommenters offered factual support for theassertion that selling reclaimed vehiclesdirectly to the public generally yields ahigher price.

The Ohio Department of Public Safety(OPDS) filed the only comment letterasserting that Federal law does not preemptthe Ohio law. In that letter, the ODPS arguedthat there is no basis for preemption becausethe Ohio statute in question does not conflictwith Federal law.

Analysis

Permissibility of the activity

It is well established that national banksare authorized to engage in the business ofleasing automobiles. M&M LeasingCorporation v. Seattle First National Bank,563 F. 2d 1377 (9th Cir. 1977). In M&MLeasing, the court determined that personalproperty leasing was a permissible activityfor national banks because it was thefunctional equivalent of lending, an expresspower under the National Bank Act, 12U.S.C. 24 (Seventh). Id. at 1382. In 1987,Congress specifically authorized nationalbanks to lease personal property. 12 U.S.C.24 (Tenth).7 See also 12 CFR Part 23 (OCCregulation authorizing leasing for nationalbanks and establishing requirementsapplicable to leasing activities conductedpursuant to 12 U.S.C. 24 (Seventh) and 12U.S.C. 24 (Tenth)).

The authority to engage in the business ofleasing includes the authority to dispose ofleased property at the end of the lease. Courtshave long recognized the ability of nationalbanks to engage in the component activitiesof a permissible business. See Franklin Nat’l.Bank v. New York, 347 U.S. 373 (1954)(national banks may advertise bank services);Auten v. United States Nat’l. Bank, 174 U.S.125 (1899) (national bank may borrowmoney); Arnold Tours, Inc. v. Camp, 472F.2d 427 (1st Cir. 1972) (activity ispermissible if it is convenient or useful to thebusiness of banking). In these cases, thecourts’ holdings relied on whether theactivity in question was ‘‘useful’’ to nationalbanks in exercising their express powers.

In the situation you present, clearly theability to dispose of reclaimed lease propertyis useful to banks engaging in leasingactivities. Without the ability to dispose of



8 See also OCC Interpretive Letter No. 866 (Oct.8, 1999) (opining that state law requirements thatpreclude national banks from soliciting trustbusiness from customers located in states other thanwhere the bank’s main office is located would bepreempted); OCC Interpretive Letter No. 749 (Sept.13, 1996) (opining that state law requiring nationalbanks to be licensed by the state to sell annuitieswould be preempted); OCC Interpretive Letter 644(March 24, 1994) (opining that state registration andfee requirements imposed on mortgage lenderswould be preempted).

reclaimed leased property, the banks couldnot conduct the leasing business. Thus, theissue presented by your letter is whetherFederal law preempts a state law thatrestricts an essential aspect or component ofan activity expressly authorized for anational bank.

Preemptive effect of Federal lawWhen the federal government acts within

the sphere of authority conferred upon it bythe Constitution, the Supreme Court has heldthat Federal law is paramount over, and thuspreempts, state law. U.S. Const. art. VI, cl. 2(the Supremacy Clause); Cohen v. Virginia,19 U.S. (6 Wheat.) 264, 414 (1821) (Marshall,C.J.). Federal authority over national banksstems from several constitutional sources,including the Necessary and Proper Clauseand the Commerce Clause of the UnitedStates Constitution. U.S. Const. art. I, § 8,cl.3, cl. 18; McCulloch v. Maryland, 17 U.S.(4 Wheat.) 316, 409 (1819).

The United States Supreme Court hasidentified several bases for Federalpreemption of state law. First, Congress mayenact a statute that preempts state law. E.g.,Jones v. Rath Packing Co., 430 U.S. 519(1977). Second, a Federal statute may createa scheme of Federal regulation ‘‘so pervasiveas to make reasonable the inference thatCongress left no room for the States tosupplement it.’’ Rice v. Norman WilliamsCo., 458 U.S. 654, 659 (1982). Third, the statelaw may conflict with a Federal law. See,e.g., Franklin National Bank, supra; Davis v.Elmira Savings Bank, 161 U.S. 275 (1896).

In elaborating on the concept of conflict,the Supreme Court has recognized thatconflict may exist even where compliancewith both Federal and state law is possible.The Barnett court recognized that—

Federal law may be in ‘‘irreconcilableconflict’’ with state law. Rice v. NormanWilliams Co., 458 U.S. 654, 659 (1982).Compliance with both statutes, for example,may be a ‘‘physical impossibility,’’ FloridaLime & Avocado Growers, Inc. v. Paul, 373U.S. 132, 142–143 (1963); or, the state lawmay ‘‘stan[d] as an obstacle to theaccomplishment and execution of the fullpurposes and objectives of Congress.’’ Hinesv. Davidowitz, 312 U.S. 52, 67 (1941).

Barnett Bank v. Nelson, 517 U.S. 25, 31(1996) (emphasis added).

The Supreme Court has recognized thatstate law generally should not limit powersgranted by Congress—

In using the word ‘‘powers,’’ the statutechooses a legal concept that, in the contextof national bank legislation, has a history.That history is one of interpreting grants ofboth enumerated and incidental ‘‘powers’’ tonational banks as grants of authority notnormally limited by, but rather ordinarilypreempting, contrary state law.

Barnett, 517 U.S. at 32. See also Bank Onev. Guttau, 190 F.3d 844, 847 (8th Cir.1999).

In determining whether a state law standsas an obstacle to a national bank’s exerciseof a Federally authorized power, theSupreme Court has evaluated whether a statestatute interferes with the ability of a nationalbank to exercise that power. The BarnettCourt stated that—

In defining the pre-emptive scope ofstatutes and regulations granting a power to

national banks, these cases [i.e., nationalbank preemption cases] take the view thatnormally Congress would not want States toforbid, or to impair significantly, the exerciseof a power that Congress explicitly granted.To say this is not to deprive States of thepower to regulate national banks, where* * * doing so does not prevent orsignificantly interfere with the nationalbank’s exercise of its powers.

Barnett, 517 U.S. at 33.The Court has held that Federal law

preempts not only state laws that purport toprohibit a national bank from engaging in anactivity permissible under Federal law butalso state laws that condition the exercise bya national bank of a Federally authorizedactivity.

[W]here Congress has not expresslyconditioned the grant of ‘power’ upon a grantof state permission, the Court has ordinarilyfound that no such condition applies. InFranklin Nat. Bank, the Court made thispoint explicit. It held that Congress did notintend to subject national banks’ power tolocal restrictions because the federal power-granting statute there in question contained‘no indication that Congress[so] intended* * * as it has done by express language inseveral other instances.’

Barnett, 517 U.S. at 34 (citations omitted;emphasis in original).

Thus, a conflict between state law andFederal law need not be complete in order forFederal law to have preemptive effect. If astate law places limits on an unrestrictedgrant of authority under Federal law, thestate law will be preempted.8

Application to Ohio law

In disposing of reclaimed property,national banks, like any other businesses,will endeavor to maximize their recovery onthe property by disposing of it in the mannerthat will bring the highest return. In the caseof national banks, the ordinary motivation tomaximize return and minimize loss isreinforced by the legal obligation to operatein a safe and sound manner. National banksthat engage in the business of automobileleasing are required by regulation to liquidateor re-lease such property as soon aspracticable. 12 CFR 23.4(c). This requirementis contained in a section of the OCC’sregulations designed ensure that nationalbanks limit their exposure by conductingtheir leasing businesses in a safe and soundmanner. See 12 CFR Part 23. A state law thatprohibits a bank from disposing of off-leaseproperty in the way that is mosteconomically beneficial not only limits thebank’s exercise of its Federally authorizedpower, but also increases the bank’s lossexposure in a manner that is inconsistentwith safe and sound banking principles.

While the Ohio law, as interpreted by theOBMV, does not prohibit a national bankfrom disposing of reclaimed vehicles, it doesrestrict national banks from disposing ofleased vehicles in one of the usual andcustomary ways of doing so, namely, sellingdirectly to the public. You have representedthat the Banks’ experience indicates thatselling reclaimed vehicles directly to thepublic is the best way to recover vehiclecosts. The OBMV has interpreted Ohio lawto prohibit lessors from selling reclaimedvehicles at non-dealer auctions.

In our opinion, to the extent it isinterpreted and applied in this manner, Ohiolaw frustrates the Banks’ ability to operatetheir leasing businesses in an economicallyefficient manner consistent with safe andsound banking principles. Applying thestandards set forth in Barnett, the state lawsignificantly interferes with the Banks’exercise of their Federal powers. Therefore,it is our opinion that Federal law preemptsthe Ohio statute as interpreted by the OBMV.

Our conclusions are based on the facts andrepresentations made in your letter. Anymaterial change in facts or circumstancescould affect the conclusions stated in thisletter.

Sincerely,

Julie L. Williams,First Senior Deputy Comptroller and ChiefCounsel.


DEPARTMENT OF VETERANSAFFAIRS

Advisory Committee on Prostheticsand Special-Disabilities Programs;Notice of Meeting

The Department of Veterans Affairs(VA) gives notice under Public Law 92–463 that a meeting of the AdvisoryCommittee on Prosthetics and Special-Disabilities Programs will be heldTuesday and Wednesday, May 22–23,2001, at VA Headquarters, Room 230,810 Vermont Avenue, NW.,Washington, DC. The May 22 sessionwill convene at 8 a.m. and adjourn at 4p.m. and the May 23 session willconvene at 8 a.m. and adjourn at 12noon. The purpose of the Committee isto advise the Department on itsprosthetic programs designed to providestate-of-the-art prosthetics and theassociated rehabilitation research,development, and evaluation of suchtechnology. The Committee also advisesthe Department on special disabilityprograms which are defined as anyprogram administered by the Secretaryto serve veterans with spinal cordinjury, blindness or vision impairment,loss of or loss of use of extremities,deafness or hearing impairment, or



other serious incapacities in terms ofdaily life functions.

On the morning of May 22, theCommittee will hold a joint meetingwith the Veterans’ Advisory Committeeon Rehabilitation to discuss mutualissues and concerns. Both Committeeswill also receive a briefing on thecurrent status of the rehabilitation bedissue by the Chief Consultant of theRehabilitation Strategic HealthcareGroup. At the conclusion of the jointmeeting, the Advisory Committee onProsthetics and Special-DisabilitiesPrograms will receive briefings by the

National Program Directors of theSpecial-Disabilities Programs regardingthe status of their activities over the lastsix months. In the afternoon, a briefingconcerning the current status of VA’sCapacity Report will be presented by thenewly appointed Clinical Coordinator orher designee. On the morning of May23, the Committee will continue toreceive briefings by the NationalProgram Directors of the specialdisability programs, i.e., spinal cordinjury, blind rehabilitation, audiologyand speech pathology, and prosthetics.

The meeting is open to the public. Forthose wishing to attend, please contactMs. Kathy Pessagno, Veterans HealthAdministration (113), Department ofVeterans Affairs, 810 Vermont Avenue,NW., Washington, DC 20420, at (202)273–8512, prior to the meeting.

Dated: May 2, 2001.

By Direction of the Secretary.

Ventris C. Gibson,Committee Management Officer.[FR Doc. 01–11746 Filed 5–9–01; 8:45 am]



This section of the FEDERAL REGISTERcontains editorial corrections of previouslypublished Presidential, Rule, Proposed Rule,and Notice documents. These corrections areprepared by the Office of the FederalRegister. Agency prepared corrections areissued as signed documents and appear inthe appropriate document categorieselsewhere in the issue.

Corrections Federal Register

23981

Vol. 66, No. 91



Customs Service

19 CFR Part 102

T.D. [01–36]

RIN 1515–AC80

Rules of Origin for Textile and ApparelProducts

CorrectionIn rule document 01–10719,

beginning on page 21660, in the issue ofTuesday, May 1, 2001, make thefollowing correction:

§ 102.21 [Corrected]On page 21664, in the table, §102.21,

under the heading ‘‘ HTSUS’’ the fourthnumber, ‘‘6301–6303’’ should read‘‘6301–6306’’.

[FR Doc. C1–10719 Filed 5–9–01; 8:45 am]BILLING CODE 1505–01–D

VerDate 11<MAY>2000 19:40 May 09, 2001 Jkt 194001 PO 00000 Frm 00001 Fmt 4734 Sfmt 4734 E:\FR\FM\10MYCX.SGM pfrm02 PsN: 10MYCX

Thursday,

May 10, 2001

Part II

Department ofHealth and HumanServicesHealth Care Financing Administration

42 CFR Parts 410, et al.Medicare Program, Prospective PaymentSystem and Consolidated Billing forSkilled Nursing Facilities—Update;Proposed Rule





42 CFR Parts 410, 411, 413, 424, 482,and 489

[HCFA–1163–P]

RIN 0938–AK47

Medicare Program; ProspectivePayment System and ConsolidatedBilling for Skilled Nursing Facilities—Update

AGENCY: Health Care FinancingAdministration (HCFA), HHS.ACTION: Proposed rule.

SUMMARY: This proposed rule updatesthe payment rates used under theprospective payment system (PPS) forskilled nursing facilities (SNFs), forfiscal year (FY) 2002, as required bystatute. Annual updates to the PPS ratesare required by section 1888(e) of theSocial Security Act (the Act), asamended by the Medicare, Medicaid,and SCHIP Balanced Budget RefinementAct of 1999 (BBRA 1999), and theMedicare, Medicaid, and SCHIPBenefits Improvement and ProtectionAct of 2000 (BIPA 2000), relating toMedicare payments and consolidatedbilling for SNFs. As part of this annualupdate, we are rebasing and revising theroutine SNF market basket to reflect1997 total cost data (the latest availablecomplete data on the structure of SNFcosts), and modifying certain variablesfor some of the cost categories. Inaddition, we propose to implement thetransition of swing-bed facilities to theSNF PPS, as required by section1888(e)(7) of the Act.DATES: We will consider comments ifwe receive them at the appropriateaddress, as provided below, no laterthan 5 p.m. on July 9, 2001.ADDRESSES: Mail written comments (oneoriginal and three copies) to thefollowing address: Health CareFinancing Administration, Departmentof Health and Human Services,Attention: HCFA–1163–P, P.O. Box8013, Baltimore, MD 21244–8013.

If you prefer, you may deliver yourwritten comments (one original andthree copies) to one of the followingaddresses: Hubert H. HumphreyBuilding, Room 443–G, 200Independence Avenue, SW.,Washington, DC 20201, or Health CareFinancing Administration, Room C5–15–03, 7500 Security Boulevard,Baltimore, MD 21244–8150.

Comments mailed to those addressesdesignated for courier delivery may be

delayed and could be considered late.Because of staffing and resourcelimitations, we cannot accept commentsby facsimile (FAX) transmission. Pleaserefer to file code HCFA–1163–P on eachcomment. Comments received timelywill be available for public inspection asthey are received, generally beginningapproximately 3 weeks after publicationof this document, in Room C5–12–08 ofthe Health Care FinancingAdministration, 7500 SecurityBoulevard, Baltimore, Maryland,Monday through Friday of each weekfrom 8:30 a.m. to 5 p.m. Please call (410)786–7197 to make an appointment toview comments.FOR FURTHER INFORMATION CONTACT:Dana Burley, (410) 786–4547 or Sheila

Lambowitz, (410) 786–7605 (forinformation related to the case-mixclassification methodology)

John Davis, (410) 786–0008 (forinformation related to the WageIndex)

Bill Ullman, (410) 786–5667 (forinformation related to consolidatedbilling)

Susan Burris, (410) 786–6655 (forinformation related to payment)

Sheila Lambowitz, (410) 786–7605 (forinformation related to swing-bedproviders)

Bill Ullman, (410) 786–5667 or SusanBurris, (410) 786–6655 (for generalinformation)

SUPPLEMENTARY INFORMATION:Copies: To order copies of the Federal

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To assist readers in referencingsections contained in this document, weare providing the following table ofcontents.

Table of Contents

I. BackgroundA. Current System for Payment of Skilled

Nursing Facility Services Under Part Aof the Medicare Program

B. Requirements of the Balanced BudgetAct of 1997 for Updating the ProspectivePayment System for Skilled NursingFacilities

C. The Medicare, Medicaid, and SCHIPBalanced Budget Refinement Act of 1999(BBRA 1999)

D. The Medicare, Medicaid, and SCHIPBenefits Improvement and ProtectionAct of 2000 (BIPA 2000)

E. Skilled Nursing Facility ProspectivePayment—General Overview

1. Payment Provisions—Federal Rates2. Payment Provisions—Transition PeriodF. Skilled Nursing Facility Market Basket

IndexII. Update of Payment Rates Under the

Prospective Payment System for SkilledNursing Facilities

A. Federal Prospective Payment System1. Costs and Services Covered by the

Federal Rates2. Methodology Used for the Calculation of

the Federal RatesB. Case-Mix AdjustmentC. Wage Index Adjustment to Federal RatesD. Updates to the Federal RatesE. Relationship of RUG–III Classification

System to Existing Skilled NursingFacility Level-of-Care Criteria

F. Three-year Transition PeriodG. Example of Computation of Adjusted

PPS Rates and SNF PaymentIII. The Skilled Nursing Facility Market

Basket IndexA. BackgroundB. Rebasing and Revising the SNF Market

BasketIV. Update Framework

A. The Need for an Update FrameworkB. Factors Inherent in SNF Payments per

DayC. Defining Each Factor Inherent in SNF

Costs per Day1. Input Prices2. Productivity3. Real Case-Mix per Day4. Case-Mix Constant Real Output Intensity

per DayD. Applying the Factors that Affect SNF

Costs per Day in an Update FrameworkE. Current HCFA Inpatient Hospital PPS

and Illustrative SNF PPS PaymentUpdate Frameworks

F. Additional Conceptual and Data IssuesV. Consolidated BillingVI. Application of the SNF PPS to SNF

Services Furnished by Swing-BedHospitals

A. Current System for Payment of Swing-Bed Facility Services Under Part A of theMedicare Program

B. Requirement of the Balanced Budget Actof 1997 for Swing-Bed Facility Servicesto be Paid under the ProspectivePayment System for Skilled NursingFacilities

C. Requirements of BBRA 1999 AffectingSwing-Bed Payment and Eligibility

D. Implications of Swing-Bed FacilityConversion to the SNF PPS

E. SNF PPS Rate ComponentsF. Implementation of the SNF PPS for

Swing-Bed FacilitiesG. Use of the Resident Assessment

Instrument—Minimum Data Set (MDS2.0)



H. Required Schedule for Completing theMDS

I. RUG–III ‘‘Grouper’’ Methodology andSoftware

J. Applicability of Consolidated Billing toSNF Services Furnished in Swing-BedFacilities

K. Costs Associated with Automating theMDS: Preliminary Estimates

L. Provider TrainingVII. Provisions of the Proposed RuleVIII. Collection of Information RequirementsIX. Regulatory Impact Analysis

A. BackgroundB. Impact of the Proposed Rule

X. FederalismRegulation TextAppendix—Technical Features of the

Proposed 1997-based Skilled NursingFacility Market Basket Index

I. Synopsis of Structural Changes Adopted inthe Proposed Revised and Rebased 1997Skilled Nursing Facility Market Basket

II. Methodology for Developing the CostCategory Weights

III. Price Proxies Used to Measure CostCategory Growth

A. Wages and SalariesB. Employee BenefitsC. All Other ExpensesD. Capital-Related ExpensesIn addition, because of the many terms to

which we refer by abbreviation in thisproposed rule, we are listing theseabbreviations and their corresponding termsin alphabetical order below:ADL Activity of Daily LivingAHE Average Hourly EarningsARD Assessment Reference DateBBA 1997 Balanced Budget Act of 1997,

Pub. L. 105–33BBRA 1999 Medicare, Medicaid and SCHIP

Balanced Budget Refinement Act of 1999,Pub. L. 106–113

BEA (U.S.) Bureau of Economic AnalysisBIPA 2000 The Medicare, Medicaid, and

SCHIP Benefits Improvement andProtection Act of 2000, Pub. L. 106–554

BES (U.S.) Business Expenditures SurveyBLS (U.S.) Bureau of Labor StatisticsCAH Critical Access HospitalCFR Code of Federal RegulationsCPI Consumer Price IndexCPI–U Consumer Price Index-All Urban

ConsumersCPT (Physicians’) Current Procedural

TerminologyDRG Diagnosis Related GroupECI Employment Cost IndexFI Fiscal IntermediaryFR Federal RegisterFY Fiscal YearGAO General Accounting OfficeHCFA Health Care Financing

AdministrationHCPCS HCFA Common Procedure Coding

SystemICD–9–CM International Classification of

Diseases, Ninth Edition, ClinicalModification

IFC Interim Final Rule with CommentPeriod

MDS Minimum Data SetMEDPAR Medicare Provider Analysis and

Review FileMIP Medicare Integrity Program

MSA Metropolitan Statistical AreaNECMA New England County Metropolitan

AreaOIG Office of the Inspector GeneralOMRA Other Medicare Required

AssessmentPCE Personal Care ExpendituresPPI Producer Price IndexPPS Prospective Payment SystemPRM Provider Reimbursement ManualRAI Resident Assessment InstrumentRAP Resident Assessment ProtocolRAVEN Resident Assessment Validation

EntryRUG Resource Utilization GroupsSCHIP State Children’s Health Insurance

ProgramSNF Skilled Nursing FacilitySTM Staff Time Measure

I. BackgroundOn July 31, 2000, we published in the

Federal Register (65 FR 46770), a finalrule that set forth updates to thepayment rates used under theprospective payment system (PPS) forskilled nursing facilities (SNFs), forfiscal year (FY) 2001. Annual updates tothe PPS rates are required by section1888(e) of the Social Security Act (theAct), as amended by the Medicare,Medicaid, and SCHIP Balanced BudgetRefinement Act of 1999 (BBRA 1999)and the Medicare, Medicaid, and SCHIPBenefits Improvement and ProtectionAct of 2000 (BIPA 2000), relating toMedicare payments and consolidatedbilling for SNFs.

A. Current System for Payment ofSkilled Nursing Facility Services UnderPart A of the Medicare Program

Section 4432 of the Balanced BudgetAct of 1997 (BBA 1997) amendedsection 1888 of the Act to provide forthe implementation of a per diem PPSfor SNFs, covering all costs (routine,ancillary, and capital) of covered SNFservices furnished to beneficiaries underPart A of the Medicare program,effective for cost reporting periodsbeginning on or after July 1, 1998. Wepropose to update the per diem paymentrates for SNFs, for FY 2002. Majorelements of the SNF PPS include:

• Rates. Per diem Federal rates wereestablished for urban and rural areasusing allowable costs from FY 1995 costreports. These rates also included anestimate of the cost of services that,before July 1, 1998, had been paid underPart B but furnished to Medicarebeneficiaries in a SNF during a Part Acovered stay. The rates were adjustedannually using a SNF market basketindex. Rates were case-mix adjustedusing a classification system (ResourceUtilization Groups, version III (RUG–III)) based on beneficiary assessments(using the Minimum Data Set (MDS)2.0). The rates were also adjusted by the

hospital wage index to account forgeographic variation in wages. (Insection II.C of this preamble, we discussthe wage index adjustment in detail,including an examination of thefeasibility of developing a wage indexbased on SNF-specific wage data.) Atthis time, data for the FY 2002 hospitalwage index are not yet available;therefore, the index applied in thisproposed rule is the same index used inthe July 31, 2000 final rule. A correctionnotice was published on January 16,2001 (66 FR 3497) that announcedcorrections to several of the wagefactors. Additionally, as noted in theJuly 31, 2000 final rule (65 FR 46770),section 101 of BBRA 1999 also affectsthe payment rate. Finally, sections 311,312, and 314 of BIPA 2000 affect thePart A PPS payment rates for SNFs.These new provisions are discussed indetail in section I.D. of this proposedrule.

• Transition. The SNF PPS includesan initial 3-year, phased transition thatblended a facility-specific payment ratewith the Federal case-mix adjusted rate.For each cost reporting period after afacility migrated to the new system, thefacility-specific portion of the blenddecreased and the Federal portionincreased in 25 percentage pointincrements. For most facilities, thefacility-specific rate was based onallowable costs from FY 1995; however,since the last year of the transition is FY2001, all facilities will be paid at the fullFederal rate by the coming fiscal year(FY 2002), for which we are nowproposing updated rates. Therefore,unlike previous years, this proposedrule does not include adjustment factorsrelated to facility-specific rates for thecoming fiscal year.

• Coverage. Medicare’s fundamentalrequirements for SNF coverage were notchanged by BBA 1997; however,because RUG–III classification is based,in part, on the beneficiary’s need forskilled nursing care and therapy, wehave attempted, where possible, tocoordinate claims review procedureswith the outputs of beneficiaryassessment and RUG–III classifyingactivities.

• Consolidated Billing. BBA 1997included a billing provision thatrequired a SNF to submit consolidatedMedicare bills for its residents foralmost all services that are coveredunder either Part A or Part B (the statuteexcluded a small list of services,primarily those of physicians andcertain other types of practitioners).With the exception of physical therapy,occupational therapy, and speech-language therapy, section 313 of BIPA2000 has now limited the scope of this



provision to apply only to those servicesthat are furnished during the course ofa resident’s covered Part A stay in theSNF, as discussed later in this proposedrule.

• Application of the SNF PPS to SNFservices furnished by swing-bedhospitals. Section 1883 of the Actpermits certain small, rural hospitals toenter into a Medicare swing-bedagreement, under which the hospitalcan use its beds to provide either acuteor SNF care, as needed. Part A currentlypays for SNF services furnished byswing-bed hospitals on a cost-relatedbasis. Section 1888(e)(7) of the Actrequires the SNF PPS to encompassthese services no earlier than costreporting periods beginning on July 1,1999, and no later than the end of theSNF PPS transition period described insection 1888(e)(2)(E) of the Act.

B. Requirements of the Balanced BudgetAct of 1997 for Updating the ProspectivePayment System for Skilled NursingFacilities

Section 1888(e)(4)(H) of the Actrequires that we publish in the FederalRegister:

1. The unadjusted Federal per diemrates to be applied to days of coveredSNF services furnished during the FY.

2. The case-mix classification systemto be applied with respect to theseservices during the FY.

3. The factors to be applied in makingthe area wage adjustment with respectto these services.

In the July 30, 1999 final rule (64 FR41670), we indicated that we wouldannounce any changes to the guidelinesfor Medicare level of caredeterminations related to modificationsin the RUG–III classification structure.

Along with a number of otherrevisions discussed later in thispreamble, this proposed rule providesthe annual updates to the Federal ratesas mandated by the Act.

C. The Medicare, Medicaid, and SCHIPBalanced Budget Refinement Act of1999 (BBRA 1999)

There were several provisions inBBRA 1999 that resulted in adjustmentsto the PPS for SNFs. The provisionswere described in the final rule that wepublished on July 31, 2000 (65 FR46770). In particular, section 101provided for a temporary, 20 percentincrease in the per diem adjustedpayment rates for 15 specified RUG–IIIgroups (SE3, SE2, SE1, SSC, SSB, SSA,CC2, CC1, CB2, CB1, CA2, CA1, RHC,RMC, and RMB). Section 101 alsoincluded a 4 percent across-the-boardincrease in the adjusted Federal perdiem payment rates each year for FYs

2001 and 2002, exclusive of the 20percent increase.

We included further information onall of the provisions of BBRA 1999 inProgram Memorandums A–99–53 andA–99–61 (December 1999), and ProgramMemorandum AB–00–18 (March 2000).

D. The Medicare, Medicaid, and SCHIPBenefits Improvement and ProtectionAct of 2000 (BIPA 2000)

The following highlights the majorprovisions in BIPA 2000 that result inadjustments to the PPS for SNFs:

• Section 203—Exemption of CriticalAccess Hospital (CAH) Swing-beds fromSNF PPS. This provision exemptsswing-beds in CAHs from section1888(e)(7) of the Act (as enacted bysection 4432(a) of BBA 1997) whichapplies the SNF PPS to SNF servicesfurnished by swing-bed hospitals.Accordingly, this provision enablesCAHs to be paid for their swing-bedSNF services on a reasonable cost basis.This provision is effective with costreporting periods beginning on or afterDecember 21, 2000, the date of theenactment of this Act. We includefurther information on this provision inProgram Memorandum A–01–09(January 16, 2001).

• Section 311—Elimination ofReduction in SNF Market Basket Updatein 2001. This provision eliminates theone percent reduction reflected in theupdate formula for the Federal rates forFY 2001 that was required by BBA 1997.In implementing this change, thisprovision modifies the schedule andrates according to which Federal perdiem payments are updated. For FY2002 and FY 2003, the updates wouldbe the market basket index increaseminus 0.5 percentage points. Thisprovision also provides a special rulethat, for purposes of making paymentsunder the SNF PPS for FY 2001, for thefirst half of FY 2001 (the periodbeginning October 1, 2000, and endingMarch 31, 2001), the market basketupdate remains at market basket minus1, and for the second half of the fiscalyear (the period beginning on April 1,2001, and ending on September 30,2001), the market basket update changesfrom market basket minus 1 to marketbasket plus 1.

In addition, this provision requiresthe General Accounting Office (GAO) tosubmit a report to Congress by July 1,2002, on the adequacy of SNF paymentrates. It also requires the Secretary toconduct a study of the different systemsfor categorizing patients in SNFs in amanner that accounts for the relativeresource utilization of different patienttypes, and to submit a report toCongress not later than January 1, 2005.

• Section 312—Increase in NursingComponent of PPS Federal Rate. Thisprovision requires the Secretary toincrease by 16.66 percent the nursingcomponent of the case-mix adjustedFederal rate specified in the July 31,2000 final rule (65 FR 46770) forservices furnished on or after April 1,2001, and before October 1, 2002. Thisprovision also requires the GAO toconduct an audit of SNF nursing staffratios, and to submit a report toCongress by August 1, 2002, includinga recommendation on whether thetemporary 16.66 percent increase in thenursing component should becontinued.

• Section 313—Application of SNFConsolidated Billing RequirementLimited to Part A Covered Stays. Thisprovision repeals the consolidatedbilling requirement for services (otherthan physical therapy, occupationaltherapy, and speech-language therapy)furnished to those SNF residents whoare in non-covered stays, effectiveJanuary 1, 2001. It also directs theSecretary to monitor Part B paymentsfor such services, in order to guardagainst duplicate billing and theexcessive provision of services.

• Section 314—Adjustment ofRehabilitation RUGs to Correct Anomalyin Payment Rates. For servicesfurnished from April 1, 2001, until thedate that RUG refinements areimplemented, this provision requiresthe Secretary to increase by 6.7 percentthe adjusted Federal per diem rate forall of the following RUG–IIIrehabilitation groups: RUC, RUB, RUA,RVC, RVB, RVA, RHC, RHB, RHA, RMC,RMB, RMA, RLB, and RLA. Thisprovision amends section 101(b) ofBBRA 1999 and supersedes the 20percent increase that BBRA 1999 hadpreviously established for the RHC,RMC, and RMB rehabilitation groups,and corrects the resulting anomalyunder which the payment rates for theseparticular groups were actually higherthan the rates for some other, moreintensive rehabilitation RUGs. Thisprovision also requires the Office ofInspector General (OIG) to reviewwhether the RUG payment structure ineffect under BBRA 1999 includedincentives for the delivery of inadequatecare and report to the Congress byOctober 1, 2001.

• Section 315—Establishment ofProcess for Geographic Reclassification.This provision explicitly permits theSecretary to establish a geographicreclassification procedure that isspecific to SNFs, for purposes ofpayment for covered SNF services underthe PPS. The Secretary may notimplement this procedure until the



Secretary has collected data necessary toestablish a SNF wage index that is basedon wage data from nursing homes.

We include further information onseveral of these provisions in ProgramMemorandum A–01–08 (January 16,2001).

E. Skilled Nursing Facility ProspectivePayment—General Overview

The Medicare SNF PPS wasimplemented for cost reporting periodsbeginning on or after July 1, 1998.Under the PPS, SNFs are paid throughprospective, case-mix adjusted per diempayment rates applicable to all coveredSNF services. These payment ratescover all the costs of furnishing coveredskilled nursing services (routine,ancillary, and capital-related costs)other than costs associated withapproved educational activities.Covered SNF services include post-hospital services for which benefits areprovided under Part A and all items andservices that, before July 1, 1998, hadbeen paid under Part B (other thanphysician and certain other servicesspecifically excluded under BBA 1997)but furnished to Medicare beneficiariesin a SNF during a Part A covered stay.A complete discussion of theseprovisions appears in the May 12, 1998interim final rule (63 FR 26252).

1. Payment Provisions—Federal RateThe PPS uses per diem Federal

payment rates based on mean SNF costsin a base year updated for inflation tothe first effective period of the PPS. Wedeveloped the Federal payment ratesusing allowable costs from hospital-based and freestanding SNF cost reportsfor reporting periods beginning in FY1995. The data used in developing theFederal rates also incorporated anestimate of the amounts that would bepayable under Part B for covered SNFservices furnished to individuals whowere receiving Part A covered servicesin a SNF.

In developing the rates for the initialperiod, we updated costs to the firsteffective year of PPS (15-month periodbeginning July 1, 1998) using a SNFmarket basket index, and thenstandardized for the costs of facilitydifferences in case-mix and forgeographic variations in wages.Providers that received new providerexemptions from the routine cost limitswere excluded from the database usedto compute the Federal payment rates,as well as costs related to payments forexceptions to the routine cost limits. Inaccordance with the formula prescribedin BBA 1997, we set the Federal rates ata level equal to the weighted mean offreestanding costs plus 50 percent of the

difference between the freestandingmean and weighted mean of all SNFcosts (hospital-based and freestanding)combined. We computed and appliedseparately the payment rates forfacilities located in urban and ruralareas. In addition, we adjusted theportion of the Federal rate attributableto wage-related costs by a wage index.

The Federal rate also incorporatesadjustments to account for facility case-mix, using a classification system thataccounts for the relative resourceutilization of different patient types.This classification system, RUG–III,utilizes beneficiary assessment datafrom the Minimum Data Set (MDS)completed by SNFs to assignbeneficiaries to one of 44 groups. TheMay 12, 1998 interim final rule (63 FR26252) included a complete anddetailed description of the RUG–IIIclassification system.

The Federal rates in this proposedrule reflect an update to the rates in theJuly 31, 2000 update notice (65 FR46770) equal to the SNF market basketindex minus 0.5 percent, as well as theelimination of the 1 percent reductionreflected in the update formula for theFY 2001 payment rates under section311 of BIPA 2000. According to section311 of BIPA 2000, for FY 2002, we willupdate the rate by adjusting the currentrates by the SNF market basket changeminus 0.5 percent.

2. Payment Provisions—TransitionPeriod

The SNF PPS includes an initial,phased transition from a facility-specificrate (which reflects the individualfacility’s historical cost experience) tothe Federal case-mix adjusted rate. Thetransition extends through the facility’sfirst three cost reporting periods underthe PPS, up to and including the onethat begins in FY 2001. Accordingly,starting with cost reporting periods thatbegin in FY 2002, we will basepayments entirely on the Federal rates.

F. Skilled Nursing Facility MarketBasket Index

Section 1888(e)(5) of the Act requiresthe Secretary to establish a SNF marketbasket index that reflects changes overtime in the prices of an appropriate mixof goods and services included in thecovered SNF services. The SNF marketbasket index is used to update theFederal rates on an annual basis. We areproposing a revised and rebased SNFmarket basket index that consists of themost commonly used cost categories forSNF routine services, ancillary services,and capital-related expenses. Acomplete discussion concerning thedesign and application of the proposed

SNF market basket index is presented inSection III.

II. Update of Payment Rates Under theProspective Payment System for SkilledNursing Facilities

A. Federal Prospective Payment System

This proposed rule sets forth aschedule of Federal prospectivepayment rates applicable to MedicarePart A SNF services beginning October1, 2001. The schedule incorporates perdiem Federal rates that provide Part Apayment for all costs of servicesfurnished to a beneficiary in a SNFduring a Medicare-covered stay.

1. Costs and Services Covered by theFederal Rates

The Federal rates apply to all costs(routine, ancillary, and capital-relatedcosts) of covered SNF services otherthan costs associated with approvededucational activities as defined in§ 413.85. Under section 1888(e)(2) of theAct, covered SNF services include post-hospital SNF services for which benefitsare provided under Part A (the hospitalinsurance program), as well as all itemsand services (other than those servicesexcluded by statute) that, before July 1,1998, were paid under Part B (thesupplementary medical insuranceprogram) but furnished to Medicarebeneficiaries in a SNF during a Part Acovered stay. (These excluded servicecategories are discussed in greater detailin section V.B.2. of the May 12, 1998interim final rule (63 FR 26295–97)).

2. Methodology Used for the Calculationof the Federal Rates

The proposed FY 2002 rates wouldreflect an update using the latest marketbasket index minus 0.5 percentagepoint. The FY 2002 market basketupdate factor is 2.9 percent, andsubtracting 0.5 percentage points yieldsan update of 2.4 percent. For a completedescription of the multi-step process,see the May 12, 1998 interim final rule(63 FR 26252). In accordance withsection 101 of BBRA 1999 and section314 of BIPA 2000, we have provided fora temporary increase in the per diemadjusted payment rates of 20 percent forcertain specified RUGs, and 6.7 percentfor certain others. These temporaryincreases of 20 percent and 6.7 percentfor certain specified RUGs will continueuntil implementation of case-mixrefinements, as described in section 101of BBRA 1999 and section 314 of BIPA2000. Also, in accordance with section101 of BBRA 1999, we are providing a4 percent increase in the adjustedFederal rate for FY 2002. Thesetemporary adjustments (that is, 20



percent, 6.7 percent, or 4 percent) arenot reflected in the rate tables (Tables 1,2, 3, 4, 5, and 6 of this proposed rule).Rather, in accordance with the statute,they are applied only after all otheradjustments (wage and case-mix) havebeen made. Further, several provisionsof BIPA 2000 affect the payment ratesfor SNFs, as described in the previoussection.

We used the SNF market basket toadjust each per diem component of theFederal rates forward to reflect costincreases occurring between themidpoint of the Federal FY beginningOctober 1, 2000, and the midpoint of theFederal FY beginning October 1, 2001and ending September 30, 2002, towhich the payment rates apply. In

accordance with section 311 of BIPA2000, the payment rates are updated forFY 2002 by a factor equal to the annualmarket basket index percentage increaseminus 0.5 percentage point. However,we note that section 311 of BIPA 2000has also eliminated the one percentreduction in the market basketassociated with the establishment of theFY 2001 payment rates. Therefore, inestablishing the payment rates for FY2002, we would update from the FY2001 payment rates determined usingthe full market basket amount for thatyear rather than the rates as theyappeared in the July 31, 2000 final rule(65 FR 46770), that were determinedusing the one percent reduction. As

modified in this manner to reflectsection 311 of BIPA 2000, the FY 2001rates would be updated using the latestmarket basket minus 0.5 percentagepoint to determine the payment rates forFY 2002. The nursing case-mixcomponent of the proposed rates, bothurban and rural, includes the 16.66percent increase provided by section312 of BIPA 2000. The rates are furtheradjusted by a wage index budgetneutrality factor, described later in thissection. Tables 1 and 2 reflect theupdated components of the unadjustedFederal rates (including both the marketbasket adjustment and the 16.66 percentincrease in the nursing case-mixcomponent).

TABLE 1.—UNADJUSTED FEDERAL RATE PER DIEM, URBAN

Rate component Nursing—case-mix

Therapy—case-mix

Therapy—non-case-mix Non-case-mix

Per Diem Amount ............................................................................................ $137.89 $89.03 $11.73 $60.33

TABLE 2.—UNADJUSTED FEDERAL RATE PER DIEM, RURAL

Rate component Nursing—case-mix

Therapy—case-mix

Therapy—non-case-mix Non-case-mix

Per Diem Amount ............................................................................................ $131.76 $102.67 $12.53 $61.44

B. Case-Mix AdjustmentFor FY 2002, we are not proposing to

modify the case-mix classificationsystem. The payment rates set forth inthis proposed rule reflect the continueduse of the existing 44-group RUG–IIIclassification system discussed in theMay 12, 1998 interim final rule (63 FR

26252). Consequently, we will alsomaintain the add-ons to the Federalrates for specified RUG–III groups, asrequired by section 101 of BBRA 1999and subsequently modified by section314 of BIPA 2000. The case-mixadjusted payment rates are listedseparately for urban and rural SNFs in

Tables 3 and 4, with the correspondingcase-mix index values. These tables donot reflect the add-ons (that is, 20percent, 6.7 percent, or 4 percent)provided for in BBRA 1999 and BIPA2000, which are applied only after allother adjustments (wage and case-mix)have been made.

TABLE 3.—CASE-MIX ADJUSTED FEDERAL RATES AND ASSOCIATED INDEXES URBAN

RUG III category Nursingindex

Therapyindex

Nursingcomponent

Therapycomponent

Non-casemix

therapycomp.

Non-casemix

componentTotal rate

RUC ....................................................................... 1.30 2.25 179.26 200.32 .................. 60.33 439.91RUB ........................................................................ 0.95 2.25 131.00 200.32 .................. 60.33 391.65RUA ........................................................................ 0.78 2.25 107.55 200.32 .................. 60.33 368.20RVC ........................................................................ 1.13 1.41 155.82 125.53 .................. 60.33 341.68RVB ........................................................................ 1.04 1.41 143.41 125.53 .................. 60.33 329.27RVA ........................................................................ 0.81 1.41 111.69 125.53 .................. 60.33 297.55RHC ....................................................................... 1.26 0.94 173.74 83.69 .................. 60.33 317.76RHB ........................................................................ 1.06 0.94 146.16 83.69 .................. 60.33 290.18RHA ........................................................................ 0.87 0.94 119.96 83.69 .................. 60.33 263.98RMC ....................................................................... 1.35 0.77 186.15 68.55 .................. 60.33 315.03RMB ....................................................................... 1.09 0.77 150.30 68.55 .................. 60.33 279.18RMA ....................................................................... 0.96 0.77 132.37 68.55 .................. 60.33 261.25RLB ........................................................................ 1.11 0.43 153.06 38.28 .................. 60.33 251.67RLA ........................................................................ 0.80 0.43 110.31 38.28 .................. 60.33 208.92SE3 ........................................................................ 1.70 .................. 234.41 .................. 11.73 60.33 306.47SE2 ........................................................................ 1.39 .................. 191.67 .................. 11.73 60.33 263.73SE1 ........................................................................ 1.17 .................. 161.33 .................. 11.73 60.33 233.39SSC ........................................................................ 1.13 .................. 155.82 .................. 11.73 60.33 227.88SSB ........................................................................ 1.05 .................. 144.78 .................. 11.73 60.33 216.84SSA ........................................................................ 1.01 .................. 139.27 .................. 11.73 60.33 211.33CC2 ........................................................................ 1.12 .................. 154.44 .................. 11.73 60.33 226.50



TABLE 3.—CASE-MIX ADJUSTED FEDERAL RATES AND ASSOCIATED INDEXES URBAN—Continued


Therapyindex

Nursingcomponent

Therapycomponent

Non-casemix

therapycomp.

Non-casemix

componentTotal rate

CC1 ........................................................................ 0.99 .................. 136.51 .................. 11.73 60.33 208.57CB2 ........................................................................ 0.91 .................. 125.48 .................. 11.73 60.33 197.54CB1 ........................................................................ 0.84 .................. 115.83 .................. 11.73 60.33 187.89CA2 ........................................................................ 0.83 .................. 114.45 .................. 11.73 60.33 186.51CA1 ........................................................................ 0.75 .................. 103.42 .................. 11.73 60.33 175.48IB2 .......................................................................... 0.69 .................. 95.14 .................. 11.73 60.33 167.20IB1 .......................................................................... 0.67 .................. 92.39 .................. 11.73 60.33 164.45IA2 .......................................................................... 0.57 .................. 78.60 .................. 11.73 60.33 150.66IA1 .......................................................................... 0.53 .................. 73.08 .................. 11.73 60.33 145.14BB2 ........................................................................ 0.68 .................. 93.77 .................. 11.73 60.33 165.83BB1 ........................................................................ 0.65 .................. 89.63 .................. 11.73 60.33 161.69BA2 ........................................................................ 0.56 .................. 77.22 .................. 11.73 60.33 149.28BA1 ........................................................................ 0.48 .................. 66.19 .................. 11.73 60.33 138.25PE2 ........................................................................ 0.79 .................. 108.93 .................. 11.73 60.33 180.99PE1 ........................................................................ 0.77 .................. 106.18 .................. 11.73 60.33 178.24PD2 ........................................................................ 0.72 .................. 99.28 .................. 11.73 60.33 171.34PD1 ........................................................................ 0.70 .................. 96.52 .................. 11.73 60.33 168.58PC2 ........................................................................ 0.65 .................. 89.63 .................. 11.73 60.33 161.69PC1 ........................................................................ 0.64 .................. 88.25 .................. 11.73 60.33 160.31PB2 ........................................................................ 0.51 .................. 70.32 .................. 11.73 60.33 142.38PB1 ........................................................................ 0.50 .................. 68.95 .................. 11.73 60.33 141.01PA2 ........................................................................ 0.49 .................. 67.57 .................. 11.73 60.33 139.63PA1 ........................................................................ 0.46 .................. 63.43 .................. 11.73 60.33 135.49

TABLE 4.—CASE-MIX ADJUSTED FEDERAL RATES AND ASSOCIATED INDEXES, RURAL


Therapyindex

Nursingcomponent

Therapycomponent

Non-casemix

therapycomp

Non-casemix

componentTotal rate

RUC ....................................................................... 1.30 2.25 171.29 231.01 .................. 61.44 463.74RUB ........................................................................ 0.95 2.25 125.17 231.01 .................. 61.44 417.62RUA ........................................................................ 0.78 2.25 102.77 231.01 .................. 61.44 395.22RVC ........................................................................ 1.13 1.41 148.89 144.76 .................. 61.44 355.09RVB ........................................................................ 1.04 1.41 137.03 144.76 .................. 61.44 343.23RVA ........................................................................ 0.81 1.41 106.73 144.76 .................. 61.44 312.93RHC ....................................................................... 1.26 0.94 166.02 96.51 .................. 61.44 323.97RHB ........................................................................ 1.06 0.94 139.67 96.51 .................. 61.44 297.62RHA ........................................................................ 0.87 0.94 114.63 96.51 .................. 61.44 272.58RMC ....................................................................... 1.35 0.77 177.88 79.06 .................. 61.44 318.38RMB ....................................................................... 1.09 0.77 143.62 79.06 .................. 61.44 284.12RMA ....................................................................... 0.96 0.77 126.49 79.06 .................. 61.44 266.99RLB ........................................................................ 1.11 0.43 146.25 44.15 .................. 61.44 251.84RLA ........................................................................ 0.80 0.43 105.41 44.15 .................. 61.44 211.00SE3 ........................................................................ 1.70 .................. 223.99 .................. 12.53 61.44 297.96SE2 ........................................................................ 1.39 .................. 183.15 .................. 12.53 61.44 257.12SE1 ........................................................................ 1.17 .................. 154.16 .................. 12.53 61.44 228.13SSC ........................................................................ 1.13 .................. 148.89 .................. 12.53 61.44 222.86SSB ........................................................................ 1.05 .................. 138.35 .................. 12.53 61.44 212.32SSA ........................................................................ 1.01 .................. 133.08 .................. 12.53 61.44 207.05CC2 ........................................................................ 1.12 .................. 147.57 .................. 12.53 61.44 221.54CC1 ........................................................................ 0.99 .................. 130.44 .................. 12.53 61.44 204.41CB2 ........................................................................ 0.91 .................. 119.90 .................. 12.53 61.44 193.87CB1 ........................................................................ 0.84 .................. 110.68 .................. 12.53 61.44 184.65CA2 ........................................................................ 0.83 .................. 109.36 .................. 12.53 61.44 183.33CA1 ........................................................................ 0.75 .................. 98.82 .................. 12.53 61.44 172.79IB2 .......................................................................... 0.69 .................. 90.91 .................. 12.53 61.44 164.88IB1 .......................................................................... 0.67 .................. 88.28 .................. 12.53 61.44 162.25IA2 .......................................................................... 0.57 .................. 75.10 .................. 12.53 61.44 149.07IA1 .......................................................................... 0.53 .................. 69.83 .................. 12.53 61.44 143.80BB2 ........................................................................ 0.68 .................. 89.60 .................. 12.53 61.44 163.57BB1 ........................................................................ 0.65 .................. 85.64 .................. 12.53 61.44 159.61BA2 ........................................................................ 0.56 .................. 73.79 .................. 12.53 61.44 147.76BA1 ........................................................................ 0.48 .................. 63.24 .................. 12.53 61.44 137.21PE2 ........................................................................ 0.79 .................. 104.09 .................. 12.53 61.44 178.06PE1 ........................................................................ 0.77 .................. 101.46 .................. 12.53 61.44 175.43PD2 ........................................................................ 0.72 .................. 94.87 .................. 12.53 61.44 168.84PD1 ........................................................................ 0.70 .................. 92.23 .................. 12.53 61.44 166.20



TABLE 4.—CASE-MIX ADJUSTED FEDERAL RATES AND ASSOCIATED INDEXES, RURAL—Continued


Therapyindex

Nursingcomponent

Therapycomponent

Non-casemix

therapycomp

Non-casemix

componentTotal rate

PC2 ........................................................................ 0.65 .................. 85.64 .................. 12.53 61.44 159.61PC1 ........................................................................ 0.64 .................. 84.33 .................. 12.53 61.44 158.30PB2 ........................................................................ 0.51 .................. 67.20 .................. 12.53 61.44 141.17PB1 ........................................................................ 0.50 .................. 65.88 .................. 12.53 61.44 139.85PA2 ........................................................................ 0.49 .................. 64.56 .................. 12.53 61.44 138.53PA1 ........................................................................ 0.46 .................. 60.61 .................. 12.53 61.44 134.58

We remain committed to efforts tomonitor the RUG–III classificationsystem and to pursue refinements inSNF payment. In the proposed ruleassociated with the FY 2001 SNF PPSupdate published April 10, 2000 (65 FR19188), we had discussed options forrefinements to the RUG–III classificationsystem to account more accurately forthe services provided to medicallycomplex patients. The refinementapproaches discussed had a particularfocus on ancillary services other thanrehabilitation (physical, occupational,and speech-language therapy), such asprescription drugs and respiratorytherapy. We described our ongoingresearch and analyses in this area andshared the initial results that weproposed be incorporated into theMedicare SNF PPS system effectiveOctober 1, 2000. In that proposed rule,we cautioned that the proposed RUG–IIIrefinements were based on limited datafrom seven states from periods prior tothe implementation of the SNF PPS(1996 and 1997). Consequently, weindicated our plan to validate thefindings using more current data from abroad national sample before issuing afinal rule.

As discussed in the final rulepublished on July 31, 2000 (65 FR46770), we conducted the validationanalyses to determine the predictivepower of the proposed case-mix modelsin identifying variations in non-therapyancillary costs, using national data froma current period (that is, after theimplementation of the SNF PPS). Basedon these analyses, we determined thatthe refinement models developed usingthe pre-PPS sample were not effective inpredicting resource use in the post-PPSenvironment. We identified severalimportant variations in the post-PPSvolume and distribution of beneficiariesand ancillary services costs using the1999 national data, which appear tohave affected the performance of thecase-mix refinement models describedin the proposed rule. We noted ourbelief that the introduction of the PPSand consolidated billing provisions for

covered Part A SNF stays may havecaused changes in facility practicepatterns and billing. These changes, aswell as the use of the broader nationaldata sample, likely diminished theeffectiveness of the models.Accordingly, in the final rule, weindicated our decision not to proceedwith the implementation of case-mixrefinements for FY 2001.

However, this decision did not in anyway reflect a lack of commitment topursuing appropriate case-mixrefinements, and we remain dedicatedto achieving this objective as quickly aspossible. While the language in section101 of BBRA 1999 does not directlymandate that we make case-mixrefinements, we believe it nonethelessreflects a clear expectation thatrefinements will occur, by establishingpayment adjustments that will expireupon the implementation of case-mixrefinements, and by characterizing thoseadjustments as temporary. Accordingly,we are continuing our active efforts inthis area, with the expectation that wewill, over the next 12 months, developcase-mix refinements.

The inability of the specific case-mixrefinement models based on a pre-PPSstudy sample (as described in the FY2001 proposed rule) to explain behavioradequately in the post-PPS data doesnot warrant the conclusion that furtherefforts to improve the payment system’sability to allocate payments based onexpected ancillary use would beunproductive. In fact, we believe theremay well be the potential to establishmeaningful refinements in the shortterm based on the results of a deliberate,comprehensive analysis using theextensive MDS 2.0, claims, and otheradministrative data now available.Moreover, this research will alsoprovide an important foundation for alonger term analysis which seeks toidentify alternative classificationapproaches in the SNF setting. Theanalysis we propose to conduct will beincluded in the report to Congressmandated by section 311 of BIPA 2000.This section requires us to submit the

report no later than January 1, 2005.This work may also support a longerterm goal, supported by HCFA andMedPAC, of developing more integratedapproaches for the payment anddelivery system for Medicare post acuteservices generally.

Therefore, we are currentlyproceeding with efforts to developrefinements to the RUG–III system, andare in the process of initiating a researchcontract in this area. We plan to lookbroadly for alternative refinementapproaches that will improve thepayment system’s ability to account forthe variation in resources associatedwith SNF patients generally, as well asmedically complex patients and non-therapy ancillary services morespecifically. This may include furtheranalysis to develop a non-therapyancillary index, similar to that proposedin the FY 2001 proposed rule, as wellas exploration of other potentialrefinement approaches that could utilizeinformation related to service use,function, diagnosis, and co-morbidities.In exploring possible refinementapproaches, it is necessary to considerthe potential effect of the refinements onaggregate SNF payments, as well as onaccess to and quality of care. Inaddition, we recognize the utility ofusing administrative data (such asclaims) in the construction of the case-mix indexes and may, as MedPAC hasrecommended in the past, examine thepotential for using this data toaccomplish the tasks we areundertaking. Such an approach wouldfacilitate annual updates to the case-mixindexes similar to the inpatient hospitalPPS. In continuing this research, wewill carefully consider the commentswe received pursuant to the FY 2001proposed rule. In addition, wespecifically solicit comments in thisproposed rule regarding possibleapproaches to refining the case-mixsystem.

While we recognize the need to seekimprovements in the payment system,we are not aware of any substantivefindings that demonstrate, as has been



suggested at recent MedPAC meetings,that the RUG–III system has proven tobe unworkable. In fact, several recentreports indicate that quality and accessdo not appear to be impaired. This maybe more a function of overall revenuesavailable to SNFs under the PPS,especially considering recent increasesin funding under BBRA 1999 and BIPA2000. Even though they do not affect thecurrent case-mix classification structure,a number of these recent paymentincreases are nonetheless intended toensure that facilities continue to be paidappropriately until RUG refinementscan be made. We also note that it maybe premature to make assumptionsregarding the effect of case-mix onprovider behavior based on currentlyavailable data (which, at this point, stillreflect only payments made during thetransition period when SNFs received ablend of the Federal rate and facility-specific rate), since provider behaviormay change significantly once paymentis made under the fully case-mixadjusted Federal rates.

Further, it is worth noting that inresearch conducted to support theimplementation of the SNF PPS, theRUG–III case-mix system was shown topredict approximately 55 percent of theoverall variation in nursing and therapystaff time costs across total facilitypopulation (that includes both Medicareand Medicaid, as well as other patients).The level of variance explanation issomewhat less across the Medicarepopulation due to its greaterhomogeneity. While we have notmeasured this directly, an examinationof the 1997 staff time data focusing onpatients in Medicare certified units thatspecialize in medically complex care orintensive rehabilitation found thatRUG–III predicted 41 percent of nursingand rehabilitation staff time costs acrosstotal facility population (which includesMedicare, Medicaid, and private paypatients). We believe that it continues tobe highly effective in this area. Whilewe have found that pharmacy costs arecorrelated somewhat with the nursingcase-mix indexes in RUG–III, it isimportant to note that such costs are, byand large, difficult to account for incase-mix systems because drug costs donot necessarily follow physicalcondition, resource use, or functionaland clinical pathways.

We look forward to addressing thisimportant issue through the study ofalternative case-mix systems requiredunder BIPA 2000, which provides anopportunity for a deliberate analyticalapproach to the question of how best torefine the current classification systemor to redirect Medicare’s paymentsystem to produce more equitable

payments for providers and best supportaccess and quality of care for Medicarebeneficiaries. Similarly, we lookforward to the study required undersection 545 of BIPA 2000 (required to becompleted by January 1, 2005), whichrequires us to submit a report on thedevelopment of standard instrumentsfor the assessment of the health andfunctional status of patients. We alsoinvite comments on possible approachesto refining the current case-mixclassification system, as well as onidentifying and studying alternatives tothe current system. With regard to theMDS 2.0, we continue to believe that theMDS is an accurate and effectiveassessment tool, which meets programobjectives related to its major purposesof supporting quality of care andproviding patient status and treatmentinformation needed to support payment.We are currently engaged in a numberof activities that support accuratecompletion of the MDS. These includeexpanded provider training, clearerdefinitions of certain MDS elements andcoding instructions, and funding ofprogram safeguard contractor activitiesto undertake auditing and verification ofthe MDS. We also note our concern thatthe OIG’s recent reports related to theaccuracy of the MDS contained anumber of methodological limitations(as acknowledged in the reports) thatlimit their utility for drawingconclusions about the MDS.

However, we recognize the increasedfinancial incentives that BIPA createsfor the rehabilitation categories and thepotential for upcoding under the SNFPPS to gain higher payments. In fact, thepotential for inappropriate upcodingexists in any prospective paymentsystem that uses coding of clinicalinformation as the basis for determiningpayment amounts due to providers, andthe SNF PPS (which bases paymentamounts on the clinical informationentered on the MDS) is no exception. Inthis context, we note that fiscalintermediaries (FIs) will continuereviewing SNF PPS bills. As withcurrent practice, the FIs will focus onidentifying instances in whichinappropriate services were provided orwhere the beneficiary did not meet therequirements for Medicare Part Acoverage in an SNF. As part of thisreview, the MDS and the medical recordis assessed to verify that the reportedinformation supports the RUG categorybilled.

We believe that the practice of FIsusing a data driven approach to focusmedical review efforts will help addressthe incentive for upcoding. Once billshave been targeted for review, the FIswill identify instances in which

inappropriate services were provided orwhere the beneficiary did not meet therequirements for Medicare Part Acoverage in a SNF. As part of thisreview, the medical record (whichincludes the MDS) is assessed to verifythat the reported information supportsthe RUG category billed.

To lend further support to programsafeguard efforts, we are in the processof awarding a contract to a MedicareIntegrity Program (MIP) contractor toprovide an ongoing centralized datasurveillance process to assess theaccuracy and reliability of MDS dataparticular to the health care furnishedby SNFs, and payment for theseservices. This includes ensuringappropriate payment and paymentdenial decisions. The findings willproduce evidence for further actions atnational, regional, and State levels inaddressing concerns in the areas ofprogram integrity, beneficiary healthand safety, and quality improvement.The contractor is also expected toperform monitoring and data analyses todetermine if there are variations overtime in the case-mix intensity, andwhether those differences representchanges in actual or real case status ofbeneficiaries rather than changes thatreflect improper provider behavior.Through the MIP contractor and the FIs,we will address instances of improperbilling through recoupment of improperpayments, intensified reviews, andprovider education.

Further, in the context of our ongoingefforts to ensure accurate payment forappropriate care, we note a situationregarding rehabilitation therapy that isbeing provided in SNFs in a mannerthat conflicts with Medicare coverageguidelines. This issue involvesproviders that refuse to employtherapists who are unwilling to perform,on a routine basis, concurrent therapy.Concurrent therapy is the practice ofone professional therapist treating morethan one Medicare beneficiary at atime—in some cases, many more thanone individual at a time.

Concurrent therapy is distinguishedfrom group therapy, because allparticipants in group therapy areworking on some common skilldevelopment and the ratio ofparticipants to therapist may be nohigher than 4 to 1. In addition, in theJuly 30, 1999 SNF PPS final rule (64 FR41662), we specified that the minutes ofgroup therapy received by thebeneficiary may account for no morethan 25 percent of the therapy (perdiscipline) received in a 7 day period.By contrast, a beneficiary who isreceiving concurrent therapy with oneor more other beneficiaries likely is not



receiving services that relate to thoseneeded by any of the other participants.Although each beneficiary may bereceiving care that is prescribed in hisindividual plan of treatment, it is notbeing delivered according to Medicarecoverage guidelines; that is, the therapyis not being provided individually, andit is unlikely that the services beingdelivered are at the complex skill levelrequired for coverage by Medicare.

The Medicare SNF benefit providescoverage of therapy services only whenthe services are of such a level ofcomplexity and sophistication (or thebeneficiary’s condition is such) that theservices can be safely and effectivelyperformed only by or under thesupervision of a qualified professionaltherapist. Therapy services that areconcurrently being delivered by onetreating therapist to many beneficiarieswould not appear to meet these criteria.If the therapist or therapy assistant canprovide distinct services to severalbeneficiaries at once, then it is unlikelythat the services are sufficientlycomplex and sophisticated to qualify forcoverage under the Medicare guidelines.

We note that there have always beenisolated instances in which aprofessional therapist has been allowedto have some overlap in the time ofconcluding treatment to one individualand the time of commencing thetreatment of another, even to the pointof briefly providing therapyconcurrently in certain cases. However,the key principle here is that Medicarerelies on the professional judgment ofthe therapist to determine when, basedon the complexity of the services to bedelivered and the condition of thebeneficiary, it is appropriate to delivercare to more than one beneficiary at thesame time. Our concern now is that insome areas of the country, concurrenttherapy is becoming a standard practicerather than the exception, and is beingdictated by facility managementpersonnel rather than according to theprofessional judgment of the therapistsinvolved.

We believe that it is important toheighten the SNF and therapyindustries’ awareness of the applicableMedicare policy in this regard. Medicarepolicy has not, until now, specificallyaddressed coverage of skilledrehabilitation therapy in situations inwhich a single professional therapist (ortherapy assistant under the supervisionof the professional therapist)simultaneously provides differenttreatments to multiple beneficiaries. Asnoted above, we have relied on theprofessional therapist’s judgment as towhen it is appropriate for an individualtherapist to provide services to more

than one beneficiary. We now wish toadvise the providers of care of ourconcern about the potentially adverseeffect of this practice on the quality ofthe therapy provided to beneficiaries inPart A SNF stays, as well as our concernabout the implications of makingpayments in such situations. We solicitpublic comments regarding the scopeand magnitude of this problem, andpossible approaches for addressing thisissue.

C. Wage Index Adjustment to FederalRates

Section 1888(e)(4)(G)(ii) of the Actrequires that we adjust the Federal ratesto account for differences in area wagelevels, using an appropriate wage index,as determined by the Secretary. Section315 of BIPA 2000 authorizes theSecretary to establish a reclassificationsystem for SNFs, similar to the hospitalmethodology. This reclassificationsystem cannot be implemented until theSecretary has collected data necessary toestablish an area wage index for SNFsbased on wage data from such facilities.Pursuant to section 106(a) of the SocialSecurity Act Amendments of 1994 (P.L.103–432), the Secretary was directed tobegin to collect data on employeecompensation and paid hours ofemployment in SNFs for the purpose ofconstructing a SNF wage index. Sincethe inception of a PPS for SNFs, wehave utilized hospital wage data indeveloping a wage index to be appliedto SNFs.

The computation of the proposedwage index is similar to past yearsbecause we incorporate the latest dataand methodology used to construct thehospital wage index (see the discussionin the May 12, 1998 interim final rule(63 FR 26274)). The wage indexadjustment is applied to the proposedlabor-related portion of the Federal rate,which is 75.374 percent of the total rate.This percentage reflects the labor-related relative importance for FY 2002.The labor-related relative importance iscalculated from the SNF market basket,and approximates the labor-relatedportion of the total costs after takinginto account historical and projectedprice changes between the base year andFY 2002. The price proxies that movethe different cost categories in themarket basket do not necessarily changeat the same rate, and the relativeimportance captures these changes.Accordingly, the relative importancefigure more closely reflects the costshare weights for FY 2002 than the baseyear weights from the SNF marketbasket.

We calculate the labor-related relativeimportance for FY 2002 in four steps.

First, we compute the FY 2002 priceindex level for the total market basketand each cost category of the marketbasket. Second, we calculate a ratio foreach cost category by dividing the FY2002 price index level for that costcategory by the total market basket priceindex level. Third, we determine the FY2002 relative importance for each costcategory by multiplying this ratio by thebase year (FY 1997) weight. Finally, wesum the FY 2002 relative importance foreach of the labor-related cost categories(that is, wages and salaries; employeebenefits; nonmedical professional fees;labor-intensive services; and, capital-related) to produce the FY 2002 labor-related relative importance. Tables 5and 6 show the Federal rates by labor-related and non-labor-relatedcomponents.

TABLE 5.—CASE-MIX ADJUSTED FED-ERAL RATES FOR URBAN SNFS BYLABOR AND NON-LABOR COMPO-NENT

RUG IIIcategory

Totalrate

Laborportion

Non-labor

portion

RUC ............ 439.91 331.58 108.33RUB ............ 391.65 295.20 96.45RUA ............ 368.20 277.53 90.67RVC ............ 341.68 257.54 84.14RVB ............ 329.27 248.18 81.09RVA ............ 297.55 224.28 73.27RHC ............ 317.76 239.51 78.25RHB ............ 290.18 218.72 71.46RHA ............ 263.98 198.97 65.01RMC ............ 315.03 237.45 77.58RMB ............ 279.18 210.43 68.75RMA ............ 261.25 196.91 64.34RLB ............. 251.67 189.69 61.98RLA ............. 208.92 157.47 51.45SE3 ............. 306.47 231.00 75.47SE2 ............. 263.73 198.78 64.95SE1 ............. 233.39 175.92 57.47SSC ............ 227.88 171.76 56.12SSB ............. 216.84 163.44 53.40SSA ............. 211.33 159.29 52.04CC2 ............. 226.50 170.72 55.78CC1 ............. 208.57 157.21 51.36CB2 ............. 197.54 148.89 48.65CB1 ............. 187.89 141.62 46.27CA2 ............. 186.51 140.58 45.93CA1 ............. 175.48 132.27 43.21IB2 .............. 167.20 126.03 41.17IB1 .............. 164.45 123.95 40.50IA2 .............. 150.66 113.56 37.10IA1 .............. 145.14 109.40 35.74BB2 ............. 165.83 124.99 40.84BB1 ............. 161.69 121.87 39.82BA2 ............. 149.28 112.52 36.76BA1 ............. 138.25 704.20 34.05PE2 ............. 780.99 136.42 44.57PE1 ............. 178.24 134.35 43.89PD2 ............. 171.34 129.15 42.19PD1 ............. 168.58 127.07 41.51PC2 ............. 161.69 121.87 39.82PC1 ............. 160.31 120.83 39.48PB2 ............. 142.38 107.32 35.06PB1 ............. 141.01 106.28 34.73



TABLE 5.—CASE-MIX ADJUSTED FED-ERAL RATES FOR URBAN SNFS BYLABOR AND NON-LABOR COMPO-NENT—Continued

RUG IIIcategory

Totalrate

Laborportion

Non-labor

portion

PA2 ............. 139.63 105.24 34.39PA1 ............. 135.49 102.12 33.37

TABLE 6.—CASE-MIX ADJUSTED FED-ERAL RATES FOR RURAL SNFS BYLABOR AND NON-LABOR COMPO-NENT

RUG IIIcategory

Totalrate

Laborportion

Non-labor

portion

RUC ............ 463.74 349.54 114.20RUB ............ 417.62 314.78 102.84RUA ............ 395.22 297.89 97.33RVC ............ 355.09 267.65 87.44RVB ............ 343.23 258.71 84.52RVA ............ 312.93 235.87 77.06RHC ............ 323.97 244.19 79.78RHB ............ 297.62 224.33 73.29RHA ............ 272.58 205.45 67.13RMC ............ 318.38 239.98 78.40RMB ............ 284.12 214.15 69.97RMA ............ 266.99 201.24 65.75RLB ............. 251.84 189.82 62.02RLA ............. 211.00 159.04 51.96SE3 ............. 297.96 224.58 73.38SE2 ............. 257.12 193.80 63.32SE1 ............. 228.13 171.95 56.18SSC ............ 222.86 167.98 54.88SSB ............. 212.32 160.03 52.29SSA ............. 207.05 156.06 50.99CC2 ............. 221.54 166.98 54.56CC1 ............. 204.41 154.07 50.34CB2 ............. 193.87 146.13 47.74CB1 ............. 184.65 139.18 45.47CA2 ............. 183.33 138.18 45.15CA1 ............. 172.79 130.24 42.55IB2 .............. 164.88 124.28 40.60IB1 .............. 162.25 122.29 39.96IA2 .............. 149.07 112.36 36.71IA1 .............. 143.80 108.39 35.41BB2 ............. 163.57 123.29 40.28BB1 ............. 159.61 120.30 39.31BA2 ............. 147.76 111.37 36.39BA1 ............. 137.21 103.42 33.79PE2 ............. 178.06 134.21 43.85PE1 ............. 175.43 132.23 43.20PD2 ............. 168.84 127.26 41.58PD1 ............. 166.20 125.27 40.93PC2 ............. 159.61 120.30 39.31PC1 ............. 158.30 119.32 38.98PB2 ............. 141.17 106.41 34.76PB1 ............. 139.85 105.41 34.44

TABLE 6.—CASE-MIX ADJUSTED FED-ERAL RATES FOR RURAL SNFS BYLABOR AND NON-LABOR COMPO-NENT—Continued

RUG IIIcategory

Totalrate

Laborportion

Non-labor

portion

PA2 ............. 138.53 104.42 34.11PA1 ............. 134.58 101.44 33.14

Section 1888(e)(4)(G)(ii) of the Actalso requires that the application of thiswage index be made in a manner thatdoes not result in aggregate paymentsthat are greater or lesser than wouldotherwise be made in the absence of thewage adjustment. In this fourth PPS year(Federal rates effective October 1, 2001),we are updating the wage indexapplicable to SNF payments using themost recent hospital wage data andapplying an adjustment to fulfill thebudget neutrality requirement. Thisrequirement will be met by multiplyingeach of the components of theunadjusted Federal rates by a factorequal to the ratio of the volumeweighted mean wage adjustment factor(using the wage index from the previousyear) to the volume weighted meanwage adjustment factor, using the wageindex for the FY beginning October 1,2001. The same volume weights areused in both the numerator anddenominator and will be derived from1997 Medicare Provider Analysis andReview File (MEDPAR) data. The wageadjustment factor used in thiscalculation is defined as the labor shareof the rate component multiplied by thewage index plus the non-labor share.The proposed budget neutrality factorfor FY 2002 is .99939.

Over the past few years, we havereceived many comments asking that weevaluate a SNF-specific wage index,which would be based solely on wageand hourly data from SNFs. To developthis analysis, a schedule was added tothe cost report to gather wage andhourly data from each SNF. In thisproposed rule we are publishing a wageindex prototype based on SNF data,along with the wage index based on thehospital wage data that was used in theFY 2001 final rule published July 31,

2000 in the Federal Register (65 FR46770).

The wage index computations for theSNF prototype were done in the samemanner as the current wage index basedon hospital data, except that SNFs useone of three cost reports to report theirdata: Freestanding SNFs use the HCFA–2540, Worksheet S–3; hospital-basedSNFs use the HCFA–2552, WorksheetS–3; and low-volume SNF providers usethe HCFA–2540-S, Worksheet S–3.

The SNF-specific wage indexesillustrated in Table 7 include thefollowing categories of data associatedwith costs paid under the SNF PPS:

• Salaries and hours fromfreestanding and hospital-based SNFs.

• Home office costs and hours.• Certain contract labor costs and

hours.• Wage-related costs.Consistent with the wage index

methodology used in the developmentof the hospital wage index, the wageindexes published here would alsocontinue to exclude the direct andoverhead costs of salaries and hours forservices not paid through the SNF PPS,such as home health services, and othersub-provider components that are notsubject to the PPS. In addition, as isdone in computing the hospital wageindex, we would phase out costsassociated with graduate medicaleducation (GME) (teaching physiciansand residents). For purposes ofillustrating the wage indexes shown inTable 7, the SNF wage index is based ona blend of 60 percent of an averagehourly wage including the GME costs,and 40 percent of an average hourlywage excluding these costs.

Table 7 shows a side by sidecomparison of the wage index. ColumnA shows the Metropolitan StatisticalArea (MSA); Column B shows the wageindex, utilizing data derived from SNFswith cost reporting periods endingduring FY 1998; Column C shows thewage index developed using SNF datafrom cost reporting periods endingduring FY 1999; and Column D showsthe wage index from the FY 2001 finalrule, as revised by the correction noticepublished on January 16, 2001 (66 FR3497).

TABLE 7.—WAGE INDEX FOR URBAN AREAS

Urban Area (Constituent Counties or County Equivalents)Wage Index

SNF98 SNF99 HOSP

Col. A Col. B Col. C Col. D

0040 Abilene, TX .............................................................................................................................................................. 0.7354 0.8162 0.8240Taylor, TX

0060 Aguadilla, PR ........................................................................................................................................................... 0.0000 0.0000 0.4391Aguada, PR



TABLE 7.—WAGE INDEX FOR URBAN AREAS—Continued


SNF98 SNF99 HOSP


Aguadilla, PRMoca, PR

0080 Akron, OH ................................................................................................................................................................ 0.9636 1.0553 0.9736Portage, OHSummit, OH

0120 Albany, GA .............................................................................................................................................................. 0.6203 0.7460 0.9933Dougherty, GALee, GA

0160 Albany-Schenectady-Troy, NY ................................................................................................................................ 1.0860 1.0809 0.8549Albany, NYMontgomery, NYRensselaer, NYSaratoga, NYSchenectady, NYSchoharie, NY

0200 Albuquerque, NM ..................................................................................................................................................... 0.7892 0.7980 0.9136Bernalillo, NMSandoval, NMValencia, NM

0220 Alexandria, LA ......................................................................................................................................................... 0.7849 0.6318 0.8123Rapides, LA

0240 Allentown-Bethlehem-Easton, PA ........................................................................................................................... 1.1553 1.0749 0.9925Carbon, PALehigh, PANorthampton, PA

0280 Altoona, PA .............................................................................................................................................................. 0.9559 0.9712 0.9346Blair, PA

0320 Amarillo, TX ............................................................................................................................................................. 0.8377 0.8338 0.8715Potter, TXRandall, TX

0380 Anchorage, AK ........................................................................................................................................................ 1.5003 1.4716 1.2793Anchorage, AK

0440 Ann Arbor, MI .......................................................................................................................................................... 1.0845 1.1059 1.1254Lenawee, MILivingston, MIWashtenaw, MI

0450 Anniston, AL ............................................................................................................................................................ 0.7619 0.9226 0.8284Calhoun, AL

0460 Appleton-Oshkosh-Neenah, WI ............................................................................................................................... 1.0962 1.0662 0.9052Calumet, WIOutagamie, WIWinnebago, WI

0470 Arecibo, PR ............................................................................................................................................................. 0.0000 0.0000 0.4525Arecibo, PRCamuy, PRHatillo, PR

0480 Asheville, NC ........................................................................................................................................................... 0.9090 0.9482 0.9516Buncombe, NCMadison, NC

0500 Athens, GA .............................................................................................................................................................. 0.9653 0.9264 0.9739Clarke, GAMadison, GAOconee, GA

0520 Atlanta, GA .............................................................................................................................................................. 0.9733 0.9474 1.0096Barrow, GABartow, GACarroll, GACherokee, GAClayton, GACobb, GACoweta, GADe Kalb, GADouglas, GAFayette, GAForsyth, GAFulton, GAGwinnett, GAHenry, GANewton, GAPaulding, GAPickens, GARockdale, GASpalding, GAWalton, GA

0560 Atlantic City-Cape May, NJ ..................................................................................................................................... 1.1443 1.1406 1.1182Atlantic City, NJCape May, NJ





SNF98 SNF99 HOSP


0580 Auburn-Opelika, AL ................................................................................................................................................. 0.9892 0.8857 0.8106Lee, AL

0600 Augusta-Aiken, GA-SC ............................................................................................................................................ 0.7831 0.7898 0.9160Columbia, GAMcDuffie, GARichmond, GAAiken, SCEdgefield, SC

0640 Austin-San Marcos, TX ........................................................................................................................................... 0.8694 0.8826 0.9577Bastrop, TXCaldwell, TXHays, TXTravis, TXWilliamson, TX

0680 Bakersfield, CA ........................................................................................................................................................ 1.0005 1.0059 0.9678Kern, CA

0720 Baltimore, MD .......................................................................................................................................................... 1.0144 0.9797 0.9365Anne Arundel, MDBaltimore, MDBaltimore City, MDCarroll, MDHarford, MDHoward, MDQueen Annes, MD

0733 Bangor, ME .............................................................................................................................................................. 1.0358 0.8851 0.9561Penobscot, ME

0743 Barnstable-Yarmouth, MA ....................................................................................................................................... 1.2663 1.2722 1.3839Barnstable, MA

0760 Baton Rouge, LA ..................................................................................................................................................... 0.7459 0.7803 0.8842Ascension, LAEast Baton Rouge, LALivingston, LAWest Baton Rouge, LA

0840 Beaumont-Port Arthur, TX ....................................................................................................................................... 0.8049 0.7895 0.8744Hardin, TXJefferson, TXOrange, TX

0860 Bellingham, WA ....................................................................................................................................................... 0.9121 0.8984 1.1439Whatcom, WA

0870 Benton Harbor, MI ................................................................................................................................................... 0.8766 0.9098 0.8671Berrien, MI

0875 Bergen-Passaic, NJ ................................................................................................................................................. 1.3811 1.2739 1.1848Bergen, NJPassaic, NJ

0880 Billings, MT .............................................................................................................................................................. 0.9429 0.9017 0.9585Yellowstone, MT

0920 Biloxi-Gulfport-Pascagoula, MS ............................................................................................................................... 0.8023 0.9676 0.8236Hancock, MSHarrison, MSJackson, MS

0960 Binghamton, NY ...................................................................................................................................................... 0.9400 0.9231 0.8690Broome, NYTioga, NY

1000 Birmingham, AL ....................................................................................................................................................... 0.8846 0.9155 0.8452Blount, ALJefferson, ALSt. Clair, ALShelby, AL

1010 Bismarck, ND ........................................................................................................................................................... 0.8939 0.8745 0.7705Burleigh, NDMorton, ND

1020 Bloomington, IN ....................................................................................................................................................... 0.8272 0.9108 0.8733Monroe, IN

1040 Bloomington-Normal, IL ........................................................................................................................................... 0.8547 0.9268 0.9095McLean, IL

1080 Boise City, ID ........................................................................................................................................................... 1.0779 0.9592 0.9006Ada, IDCanyon, ID

1123 Boston-Worcester-Lawrence-Lowell-Brockton, MA–NH .......................................................................................... 1.2273 1.1947 1.1160Bristol, MAEssex, MAMiddlesex, MANorfolk, MAPlymouth, MASuffolk, MAWorcester, MAHillsborough, NH





SNF98 SNF99 HOSP


Merrimack, NHRockingham, NHStrafford, NH

1125 Boulder-Longmont, CO ............................................................................................................................................ 1.1414 0.9062 0.9731Boulder, CO

1145 Brazoria, TX ............................................................................................................................................................. 0.7869 0.7187 0.8658Brazoria, TX

1150 Bremerton, WA ........................................................................................................................................................ 0.9945 0.9732 1.0975Kitsap, WA

1240 Brownsville-Harlingen-San Benito, TX .................................................................................................................... 0.8226 0.7991 0.8722Cameron, TX

1260 Bryan-College Station, TX ....................................................................................................................................... 0.8326 0.6742 0.8237Brazos, TX

1280 Buffalo-Niagara Falls, NY ........................................................................................................................................ 1.0114 0.9494 0.9580Erie, NYNiagara, NY

1303 Burlington, VT .......................................................................................................................................................... 1.0690 1.0145 1.0735Chittenden, VTFranklin, VTGrand Isle, VT

1310 Caguas, PR ............................................................................................................................................................. 0.0000 0.0000 0.4562Caguas, PRCayey, PRCidra, PRGurabo, PRSan Lorenzo, PR

1320 Canton-Massillon, OH ............................................................................................................................................. 0.9343 0.8839 0.8584Carroll, OHStark, OH

1350 Casper, WY ............................................................................................................................................................. 0.7798 0.8405 0.8724Natrona, WY

1360 Cedar Rapids, IA ..................................................................................................................................................... 0.8652 0.9390 0.8736Linn, IA

1400 Champaign-Urbana, IL ............................................................................................................................................ 0.9478 1.0588 0.9198Champaign, IL

1440 Charleston-North Charleston, SC ............................................................................................................................ 0.7764 0.7695 0.9038Berkeley, SCCharleston, SCDorchester, SC

1480 Charleston, WV ....................................................................................................................................................... 0.9525 0.9975 0.9240Kanawha, WVPutnam, WV

1520 Charlotte-Gastonia-Rock Hill, NC–SC ..................................................................................................................... 1.0230 0.9661 0.9407Cabarrus, NCGaston, NCLincoln, NCMecklenburg, NCRowan, NCStanly, NCUnion, NCYork, SC

1540 Charlottesville, VA ................................................................................................................................................... 0.9619 0.9943 1.0789Albemarle, VACharlottesville City, VA

Fluvanna, VAGreene, VA

1560 Chattanooga, TN–GA .............................................................................................................................................. 0.9186 0.8876 0.9833Catoosa, GADade, GAWalker, GAHamilton, TNMarion, TN

1580 Cheyenne, WY ........................................................................................................................................................ 1.0743 0.9800 0.8308Laramie, WY

1600 Chicago, IL .............................................................................................................................................................. 0.9358 0.9860 1.1146Cook, ILDe Kalb, ILDu Page, ILGrundy, ILKane, ILKendall, ILLake, ILMcHenry, ILWill, IL

1620 Chico-Paradise, CA ................................................................................................................................................. 0.9238 0.9565 0.9918Butte, CA





SNF98 SNF99 HOSP


1640 Cincinnati, OH–KY–IN ............................................................................................................................................ 0.9579 0.9615 0.9415Dearborn, INOhio, INBoone, KYCampbell, KYGallatin, KYGrant, KYKenton, KYPendleton, KYBrown, OHClermont, OHHamilton, OHWarren, OH

1660 Clarksville-Hopkinsville, TN–KY .............................................................................................................................. 0.7928 0.7668 0.8204Christian, KYMontgomery, TN

1680 Cleveland-Lorain-Elyria, OH .................................................................................................................................... 1.0330 1.0271 0.9597Ashtabula, OHGeauga, OHCuyahoga, OHLake, OHLorain, OHMedina, OH

1720 Colorado Springs, CO ............................................................................................................................................. 0.8972 0.9387 0.9697El Paso, CO

1740 Columbia, MO .......................................................................................................................................................... 0.9174 0.8050 0.8961Boone, MO

1760 Columbia, SC .......................................................................................................................................................... 0.9423 0.9195 0.9554Lexington, SCRichland, SC

1800 Columbus, GA–AL ................................................................................................................................................... 0.7897 0.8062 0.8568Russell, ALChattanoochee, GAHarris, GAMuscogee, GA

1840 Columbus, OH ......................................................................................................................................................... 1.0294 1.0288 0.9619Delaware, OHFairfield, OHFranklin, OHLicking, OHMadison, OHPickaway, OH

1880 Corpus Christi, TX ................................................................................................................................................... 0.8333 0.8573 0.8726Nueces, TXSan Patricio, TX

1890 Corvallis, OR ........................................................................................................................................................... 0.7759 0.8492 1.1326Benton, OR

1900 Cumberland, MD–WV .............................................................................................................................................. 0.8879 0.9957 0.8369Allegany, MDMineral, WV

1920 Dallas, TX ................................................................................................................................................................ 0.8943 0.9558 0.9913Collin, TXDallas, TXDenton, TXEllis, TXHenderson, TXHunt, TXKaufman, TXRockwall, TX

1950 Danville, VA ............................................................................................................................................................. 0.7390 0.7589 0.8589Danville City, VAPittsylvania, VA

1960 Davenport-Moline-Rock Island, IA–IL ...................................................................................................................... 0.8633 0.8694 0.8898Scott, IAHenry, ILRock Island, IL

2000 Dayton-Springfield, OH ............................................................................................................................................ 0.9102 0.9455 0.9442Clark, OHGreene, OHMiami, OHMontgomery, OH

2020 Daytona Beach, FL .................................................................................................................................................. 0.8922 0.9231 0.9200Flagler, FLVolusia, FL

2030 Decatur, AL .............................................................................................................................................................. 0.9186 0.8669 0.8534Lawrence, ALMorgan, AL





SNF98 SNF99 HOSP


2040 Decatur, IL ............................................................................................................................................................... 0.8804 0.8322 0.8125Macon, IL

2080 Denver, CO .............................................................................................................................................................. 1.0833 1.0643 1.0181Adams, COArapahoe, CODenver, CODouglas, COJefferson, CO

2120 Des Moines, IA ........................................................................................................................................................ 0.9003 0.9712 0.9118Dallas, IAPolk, IAWarren, IA

2160 Detroit, MI ................................................................................................................................................................ 0.9798 0.9957 1.0510Lapeer, MIMacomb, MIMonroe, MIOakland, MISt. Clair, MIWayne, MI

2180 Dothan, AL ............................................................................................................................................................... 0.7485 0.8621 0.7943Dale, ALHouston, AL

2190 Dover, DE ................................................................................................................................................................ 1.1346 1.0334 1.0078Kent, DE

2200 Dubuque, IA ............................................................................................................................................................. 0.9533 1.0244 0.8746Dubuque, IA

2240 Duluth-Superior, MN–WI ......................................................................................................................................... 0.9492 1.0842 1.0032St. Louis, MNDouglas, WI

2281 Dutchess County, NY .............................................................................................................................................. 1.0745 1.1267 1.0249Dutchess, NY

2290 Eau Claire, WI ......................................................................................................................................................... 0.9402 0.9868 0.8790Chippewa, WIEau Claire, WI

2320 El Paso, TX ............................................................................................................................................................. 0.7912 0.8687 0.9346El Paso, TX2330 Elkhart-Goshen, IN 1.0718 0.9752 0.9145Elkhart, IN

2335 Elmira, NY ............................................................................................................................................................... 1.0063 1.0535 0.8546Chemung, NY

2340 Enid, OK .................................................................................................................................................................. 0.7874 0.7879 0.8610Garfield, OK

2360 Erie, PA ................................................................................................................................................................... 1.0605 1.0583 0.8985Erie, PA

2400 Eugene-Springfield, OR ........................................................................................................................................... 0.8713 0.8417 1.0965Lane, OR

2440 Evansville-Henderson, IN–KY ................................................................................................................................. 0.9297 0.9342 0.8173Posey, INVanderburgh, INWarrick, INHenderson, KY

2520 Fargo-Moorhead, ND–MN ....................................................................................................................................... 0.9621 1.0643 0.8749Clay, MNCass, ND

2560 Fayetteville, NC ....................................................................................................................................................... 0.8495 0.8584 0.8655Cumberland, NC

2580 Fayetteville-Springdale-Rogers, AR ........................................................................................................................ 0.8193 0.8512 0.7910Benton, ARWashington, AR

2620 Flagstaff, AZ–UT ..................................................................................................................................................... 1.2591 1.0997 1.0686Coconino, AZKane, UT

2640 Flint, MI .................................................................................................................................................................... 0.9788 0.9726 1.1205Genesee, MI

2650 Florence, AL ............................................................................................................................................................ 0.9251 0.9031 0.7616Colbert, ALLauderdale, AL

2655 Florence, SC ............................................................................................................................................................ 0.7684 0.7799 0.8777Florence, SC

2670 Fort Collins-Loveland, CO ....................................................................................................................................... 0.9010 0.9680 1.0647Larimer, CO

2680 Ft. Lauderdale, FL ..................................................................................................................................................... 0.9681 0.9625 1.0121Broward, FL

2700 Fort Myers-Cape Coral, FL ..................................................................................................................................... 0.9444 0.8951 0.9247Lee, FL

2710 Fort Pierce-Port St. Lucie, FL ................................................................................................................................. 1.0172 0.9880 0.9538Martin, FL





SNF98 SNF99 HOSP


St. Lucie, FL2720 Fort Smith, AR–OK .................................................................................................................................................. 0.7268 0.7499 0.8052

Crawford, ARSebastian, ARSequoyah, OK

2750 Fort Walton Beach, FL ............................................................................................................................................ 0.9440 0.9582 0.9607Okaloosa, FL

2760 Fort Wayne, IN . ...................................................................................................................................................... 0.9082 0.9763 0.8665Adams, INAllen, INDe Kalb, INHuntington, INWells, INWhitley, IN

2800 Forth Worth-Arlington, TX ....................................................................................................................................... 0.8821 0.9047 0.9527Hood, TXJohnson, TXParker, TXTarrant, TX

2840 Fresno, CA .............................................................................................................................................................. 0.8738 0.9823 1.0104Fresno, CAMadera, CA

2880 Gadsden, AL ............................................................................................................................................................ 0.9108 0.6287 0.8423Etowah, AL

2900 Gainesville, FL ......................................................................................................................................................... 0.9325 1.0300 1.0074Alachua, FL

2920 Galveston-Texas City, TX ....................................................................................................................................... 0.7678 0.6821 0.9918Galveston, TX

2960 Gary, IN ................................................................................................................................................................... 0.9827 0.9807 0.9454Lake, INPorter, IN

2975 Glens Falls, NY ....................................................................................................................................................... 0.9560 0.9772 0.8361Warren, NYWashington, NY

2980 Goldsboro, NC ......................................................................................................................................................... 0.9370 0.8740 0.8423Wayne, NC

2985 Grand Forks, ND–MN .............................................................................................................................................. 0.8816 0.9022 0.8816Polk, MNGrand Forks, ND

2995 Grand Junction, CO ................................................................................................................................................. 0.9539 0.9156 0.9109Mesa, CO.

3000 Grand Rapids-Muskegon-Holland, MI ..................................................................................................................... 0.9715 0.9978 1.0248Allegan, MIKent, MIMuskegon, MIOttawa, MI

3040 Great Falls, MT ........................................................................................................................................................ 0.9712 1.0019 0.9065Cascade, MT

3060 Greeley, CO ............................................................................................................................................................. 0.9253 0.8880 0.9814Weld, CO

3080 Green Bay, WI ......................................................................................................................................................... 0.9441 1.0262 0.9225Brown, WI

3120 Greensboro-Winston-Salem-High Point, NC ........................................................................................................... 1.0166 0.9782 0.9131Alamance, NCDavidson, NCDavie, NCForsyth, NCGuilford, NCRandolph, NCStokes, NCYadkin, NC

3150 Greenville, NC ......................................................................................................................................................... 0.8844 0.9400 0.9384Pitt, NC

3160 Greenville-Spartanburg-Anderson, SC .................................................................................................................... 0.8362 0.9622 0.9003Anderson, SCCherokee, SCGreenville, SCPickens, SCSpartanburg, SC

3180 Hagerstown, MD ...................................................................................................................................................... 0.9318 0.9153 0.9409Washington, MD

3200 Hamilton-Middletown, OH ........................................................................................................................................ 0.9739 0.9532 0.9061Butler, OH

3240 Harrisburg-Lebanon-Carlisle, PA ............................................................................................................................. 1.1052 1.0753 0.9386Cumberland, PADauphin, PALebanon, PA





SNF98 SNF99 HOSP


Perry, PA3283 Hartford, CT ............................................................................................................................................................. 1.2733 1.1675 1.1373

Hartford, CTLitchfield, CTMiddlesex, CTTolland, CT

3285 Hattiesburg, MS ....................................................................................................................................................... 0.8421 0.7540 0.7490Forrest, MSLamar, MS

3290 Hickory-Morganton-Lenoir, NC ................................................................................................................................ 0.9086 0.9027 0.9008Alexander, NCBurke, NCCaldwell, NCCatawba, NC

3320 Honolulu, HI ............................................................................................................................................................. 1.2242 1.2838 1.1863Honolulu, HI

3350 Houma, LA ............................................................................................................................................................... 0.6694 0..6749 0.8086Lafourche, LATerrebonne, LA

3360 Houston, TX ............................................................................................................................................................. 0.8506 0.8634 0.9732Chambers, TXFort Bend, TXHarris, TXLiberty, TXMontgomery, TXWaller, TX

3400 Huntington-Ashland, WV–KY–OH ........................................................................................................................... 0.7948 0.8957 0.9876Boyd, KYCarter, KYGreenup, KYLawrence, OHCabell, WVWayne, WV

3440 Huntsville, AL ........................................................................................................................................................... 0.9774 0.7569 0.8932Limestone, ALMadison, AL

3480 Indianapolis, IN ........................................................................................................................................................ 0.9932 1.0128 0.9787Boone, INHamilton, INHancock, INHendricks, INJohnson, INMadison, INMarion, INMorgan, INShelby, IN

3500 Iowa City, IA ............................................................................................................................................................ 0.9092 0.8611 0.9657Johnson, IA

3520 Jackson, MI ............................................................................................................................................................. 0.9393 1.0367 0.9134Jackson, MI

3560 Jackson, MS ............................................................................................................................................................ 0.8731 0.9642 0.8812Hinds, MSMadison, MSRankin, MS

3580 Jackson, TN ............................................................................................................................................................. 0.9437 0.8032 0.8796Chester, TNMadison, TN

3600 Jacksonville, FL ....................................................................................................................................................... 0.9566 0.9309 0.9208Clay, FLDuval, FLNassau, FLSt. Johns, FL

3605 Jacksonville, NC ...................................................................................................................................................... 0.6554 0.8257 0.7777Onslow, NC

3610 Jamestown, NY ....................................................................................................................................................... 0.9276 0.8990 0.7818Chautaqua, NY

3620 Janesville-Beloit, WI ................................................................................................................................................ 0.8899 0.9652 0.9585Rock, WI

3640 Jersey City, NJ ........................................................................................................................................................ 1.2879 0.8535 1.1502Hudson, NJ

3660 Johnson City-Kingsport-Bristol, TN–VA .................................................................................................................. 0.8853 0.8303 0.8272Carter, TNHawkins, TNSullivan, TNUnicoi, TNWashington, TNBristol City, VA





SNF98 SNF99 HOSP


Scott, VAWashington, VA

3680 Johnstown, PA ......................................................................................................................................................... 0.9877 0.9914 0.8846Cambria, PASomerset, PA

3700 Jonesboro, AR ......................................................................................................................................................... 0.6568 0.8322 0.7832Craighead, AR

3710 Joplin, MO .............................................................................................................................................................. 0.8112 0.8128 0.8148Jasper, MONewton, MO

3720 Kalamazoo-Battle Creek, MI ................................................................................................................................... 0.9773 0.9982 1.0453Calhoun, MIKalamazoo, MIVan Buren, MI

3740 Kankakee, IL ............................................................................................................................................................ 0.8635 0.8886 0.9902Kankakee, IL

3760 Kansas City, KS–MO ............................................................................................................................................... 0.9439 0.9726 0.9527Johnson, KSLeavenworth, KSMiami, KSWyandotte, KSCass, MOClay, MOClinton, MOJackson, MOLafayette, MOPlatte, MORay, MO

3800 Kenosha, WI ............................................................................................................................................................ 1.1006 1.0354 0.9611Kenosha, WI

3810 Killeen-Temple, TX .................................................................................................................................................. 0.7996 0.8280 1.0119Bell, TXCoryell, TX

3840 Knoxville, TN ........................................................................................................................................................... 0.9046 0.8712 0.8340Anderson, TNBlount, TNKnox, TNLoudon, TNSevier, TNUnion, TN

3850 Kokomo, IN .............................................................................................................................................................. 1.0415 0.8785 0.9518Howard, INTipton, IN

3870 La Crosse, WI–MN .................................................................................................................................................. 0.9343 0.9838 0.9211Houston, MNLa Crosse, WI

3880 Lafayette, LA ........................................................................................................................................................... 0.7373 0.7000 0.8490Acadia, LALafayette, LASt. Landry, LASt. Martin, LA

3920 Lafayette, IN ............................................................................................................................................................ 1.0308 0.9298 0.8834Clinton, INTippecanoe, IN

3960 Lake Charles, LA ..................................................................................................................................................... 0.7437 0.7102 0.7399Calcasieu, LA

3980 Lakeland-Winter Haven, FL ..................................................................................................................................... 1.0545 1.0235 0.9239Polk, FL

4000 Lancaster, PA .......................................................................................................................................................... 1.0528 1.0114 0.9259Lancaster, PA

4040 Lansing-East Lansing, MI ........................................................................................................................................ 0.9933 1.0271 0.9934Clinton, MIEaton, MIIngham, MI

4080 Laredo, TX ............................................................................................................................................................... 0.7832 0.8348 0.8168Webb, TX

4100 Las Cruces, NM ....................................................................................................................................................... 0.6816 0.7263 0.8658Dona Ana, NM

4120 Las Vegas, NV–AZ .................................................................................................................................................. 1.0189 1.0278 1.0796Mohave, AZClark, NVNye, NV

4150 Lawrence, KS .......................................................................................................................................................... 0.9625 0.9352 0.8190Douglas, KS

4200 Lawton, OK .............................................................................................................................................................. 0.6546 0.7951 0.8996Comanche, OK

4243 Lewiston-Auburn, ME .............................................................................................................................................. 0.8717 0.9202 0.9036





SNF98 SNF99 HOSP


Androscoggin, ME4280 Lexington, KY .......................................................................................................................................................... 0.9208 0.7549 0.8866

Bourbon, KYClark, KYFayette, KYJessamine, KYMadison, KYScott, KYWoodford, KY

4320 Lima, OH ................................................................................................................................................................. 0.8609 0.9397 0.9320Allen, OHAuglaize, OH

4360 Lincoln, NE .............................................................................................................................................................. 1.0497 1.0192 0.9626Lancaster, NE

4400 Little Rock-North Little Rock, AR ............................................................................................................................ 0.9213 0.9210 0.8906Faulkner, ARLonoke, ARPulaski, ARSaline, AR

4420 Longview-Marshall, TX ............................................................................................................................................ 0.7978 0.9291 0.8922Gregg, TXHarrison, TXUpshur, TX

4480 Los Angeles-Long Beach, CA ................................................................................................................................. 1.0083 1.0129 1.1996Los Angeles, CA

4520 Louisville, KY–IN ..................................................................................................................................................... 0.9433 0.9206 0.9350Clark, INFloyd, INHarrison, INScott, INBullitt, KYJefferson, KYOldham, KY

4600 Lubbock, TX ............................................................................................................................................................ 0.7676 0.7802 0.8838Lubbock, TX

4640 Lynchburg, VA ......................................................................................................................................................... 0.8673 0.8209 0.8867Amherst, VABedford City, VABedford, VACampbell, VALynchburg City, VA

4680 Macon, GA ............................................................................................................................................................... 0.8420 0.7877 0.8974Bibb, GAHouston, GAJones, GAPeach, GATwiggs, GA

4720 Madison, WI ............................................................................................................................................................. 0.9982 1.0705 1.0271Dane, WI

4800 Mansfield, OH .......................................................................................................................................................... 0.8294 0.9051 0.8690Crawford, OHRichland, OH

4840 Mayaguez, PR ......................................................................................................................................................... 0.0000 0.0000 0.4589Anasco, PRCabo Rojo, PRHormigueros, PRMayaguez, PRSabana Grande, PRSan German, PR

4880 McAllen-Edinburg-Mission, TX ................................................................................................................................ 0.8136 0.7935 0.8566Hidalgo, TX

4890 Medford-Ashland, OR .............................................................................................................................................. 0.9732 0.9528 1.0344Jackson, OR

4900 Melbourne-Titusville-Palm Bay, FL ......................................................................................................................... 1.0452 1.0178 0.9688Brevard, Fl

4920 Memphis, TN–AR–MS ............................................................................................................................................. 0.9554 0.9919 0.8723Crittenden, ARDe Soto, MSFayette, TNShelby, TNTipton, TN

4940 Merced, CA .............................................................................................................................................................. 0.7959 0.9022 0.9646Merced, CA

5000 Miami, FL ................................................................................................................................................................. 0.9359 0.9577 1.0059Dade, FL

5015 Middlesex-Somerset-Hunterdon, NJ ....................................................................................................................... 1.1283 1.2052 1.1075Hunterdon, NJ





SNF98 SNF99 HOSP


Middlesex, NJSomerset, NJ

5080 Milwaukee-Waukesha, WI ....................................................................................................................................... 1.0373 1.0397 0.9767Milwaukee, WIOzaukee, WIWashington, WIWaukesha, WI

5120 Minneapolis-St Paul, MN–WI .................................................................................................................................. 1.2186 1.2375 1.1017Anoka, MNCarver, MNChisago, MNDakota, MNHennepin, MNIsanti, MNRamsey, MNScott, MNSherburne, MNWashington, MNWright, MNPierce, WISt. Croix, WI

5140 Missoula, MT ......................................................................................................................................................... 0.9197 0.8724 0.9274Missoula, MT

5160 Mobile, AL ................................................................................................................................................................ 0.8273 0.9284 0.8163Baldwin, ALMobile, AL

5170 Modesto, CA ............................................................................................................................................................ 0.8732 0.9675 1.0396Stanislaus, CA

5190 Monmouth-Ocean, NJ ............................................................................................................................................. 1.1251 1.0979 1.1278Monmouth, NJOcean, NJ

5200 Monroe, LA .............................................................................................................................................................. 0.7793 0.8161 0.8396Ouachita, LA

5240 Montgomery, AL ...................................................................................................................................................... 0.7738 0.8229 0.7653Autauga, ALElmore, ALMontgomery, AL

5280 Muncie, IN ............................................................................................................................................................... 0.9597 0.9550 1.0969Delaware, IN

5330 Myrtle Beach, SC .................................................................................................................................................... 0.9077 0.7922 0.8440Horry, SC

5345 Naples, FL ............................................................................................................................................................... 0.9628 1.0437 0.9661Collier, FL

5360 Nashville, TN ........................................................................................................................................................... 0.9408 0.9345 0.9490Cheatham, TNDavidson, TNDickson, TNRobertson, TNRutherford, TNSumner, TNWilliamson, TNWilson, TN

5380 Nassau-Suffolk, NY ................................................................................................................................................. 1.5592 1.5034 1.3932Nassau, NYSuffolk, NY

5483 New Haven-Bridgeport-Stamford-Waterbury-Danbury, CT ..................................................................................... 1.2799 1.3446 1.2297Fairfield, CTNew Haven, CT

5523 New London-Norwich, CT ....................................................................................................................................... 1.2035 1.2438 1.2063New London, CT

5560 New Orleans, LA ..................................................................................................................................................... 0.8077 0.8436 0.9295Jefferson, LAOrleans, LAPlaquemines, LASt. Bernard, LASt. Charles, LASt. James, LASt. John The Baptist, LASt. Tammany, LA

5600 New York, NY .......................................................................................................................................................... 1.5638 1.4983 1.4651Bronx, NYKings, NYNew York, NYPutnam, NYQueens, NYRichmond, NYRockland, NY





SNF98 SNF99 HOSP


Westchester, NY5640 Newark, NJ .............................................................................................................................................................. 1.2344 1.1704 1.1837

Essex, NJMorris, NJSussex, NJUnion, NJWarren, NJ

5660 Newburgh, NY–PA .................................................................................................................................................. 1.2791 1.2347 1.0847Orange, NYPike, PA

5720 Norfolk-Virginia Beach-Newport News, VA–NC ...................................................................................................... 0.8084 0.7828 0.8412Currituck, NCChesapeake City, VAGloucester, VAHampton City, VAIsle of Wight, VAJames City, VAMathews, VANewport News City, VANorfolk City, VAPoquoson City, VAPortsmouth City, VASuffolk City, VAVirginia Beach City, VAWilliamsburg City, VAYork, VA

5775 Oakland, CA ............................................................................................................................................................ 1.0815 1.0616 1.4983Alameda, CAContra Costa, CA

5790 Ocala, FL ................................................................................................................................................................. 0.9967 0.7345 0.9243Marion, FL

5800 Odessa-Midland, TX ................................................................................................................................................ 0.7857 0.8858 0.9205Ector, TXMidland, TX

5880 Oklahoma City, OK .................................................................................................................................................. 0.7911 0.7955 0.8822Canadian, OKCleveland, OKLogan, OKMcClain, OKOklahoma, OKPottawatomie, OK

5910 Olympia, WA ............................................................................................................................................................ 0.9888 0.9548 1.0677Thurston, WA

5920 Omaha, NE–IA ........................................................................................................................................................ 1.0212 1.0731 0.9572Pottawattamie, IACass, NEDouglas, NESarpy, NEWashington, NE

5945 Orange County, CA ................................................................................................................................................. 1.0747 1.0649 1.1467Orange, CA

5960 Orlando, FL .............................................................................................................................................................. 0.9445 0.9566 0.9610Lake, FLOrange, FLOsceola, FLSeminole, FL

5990 Owensboro, KY ....................................................................................................................................................... 1.0374 0.8987 0.8159Daviess, KY

6015 Panama City, FL ...................................................................................................................................................... 0.9224 0.9344 0.9010Bay, FL

6020 Parkersburg-Marietta, WV–OH ................................................................................................................................ 0.9779 0.9064 0.8274Washington, OHWood, WV

6080 Pensacola, FL .......................................................................................................................................................... 0.7929 0.8519 0.8176Escambia, FLSanta Rosa, FL

6120 Peoria-Pekin, IL ....................................................................................................................................................... 0.8375 0.9017 0.8645Peoria, ILTazewell, ILWoodford, IL

6160 Philadelphia, PA–NJ ................................................................................................................................................ 1.1553 1.1460 1.0937Burlington, NJCamden, NJGloucester, NJSalem, NJBucks, PAChester, PA





SNF98 SNF99 HOSP


Delaware, PAMontgomery, PAPhiladelphia, PA

6200 Phoenix-Mesa, AZ ................................................................................................................................................... 1.0176 1.0219 0.9669Maricopa, AZPinal, AZ

6240 Pine Bluff, AR .......................................................................................................................................................... 0.6727 0.7983 0.7791Jefferson, AR

6280 Pittsburgh, PA .......................................................................................................................................................... 1.0937 1.0574 0.9741Allegheny, PABeaver, PAButler, PAFayette, PAWashington, PAWestmoreland, PA

6323 Pittsfield, MA ............................................................................................................................................................ 1.1357 1.0739 1.0288Berkshire, MA

6340 Pocatello, ID ............................................................................................................................................................ 0.7864 0.7717 0.9076Bannock, ID

6360 Ponce, PR ............................................................................................................................................................... 0.7238 0.6854 0.5006Guayanilla, PRJuana Diaz, PRPenuelas, PRPonce, PRVillalba, PRYauco, PR

6403 Portland, ME ............................................................................................................................................................ 1.0594 1.0378 0.9748Cumberland, MESagadahoc, MEYork, ME

6440 Portland-Vancouver, OR–WA .................................................................................................................................. 1.0495 1.0048 1.0910Clackamas, ORColumbia, ORMultnomah, ORWashington, ORYamhill, ORClark, WA

6483 Providence-Warwick-Pawtucket, RI ........................................................................................................................ 1.0486 1.0120 1.0864Bristol, RIKent, RINewport, RIProvidence, RIWashington, RI

6520 Provo-Orem, UT ...................................................................................................................................................... 0.7640 0.9453 1.0029Utah, UT

6560 Pueblo, CO .............................................................................................................................................................. 0.8689 0.9305 0.8815Pueblo, CO

6580 Punta Gorda, FL ...................................................................................................................................................... 0.9549 0.9761 0.9613Charlotte, FL

6600 Racine, WI ............................................................................................................................................................... 1.1701 1.1432 0.9246Racine, WI

6640 Raleigh-Durham-Chapel Hill, NC ............................................................................................................................ 1.0767 1.0122 0.9646Chatham, NCDurham, NCFranklin, NCJohnston, NCOrange, NCWake, NC

6660 Rapid City, SD ......................................................................................................................................................... 0.7728 0.9584 0.8865Pennington, SD

6680 Reading, PA ............................................................................................................................................................ 1.0531 1.1283 0.9152Berks, PA

6690 Redding, CA ............................................................................................................................................................ 1.1269 1.0330 1.1664Shasta, CA

6720 Reno, NV ................................................................................................................................................................. 1.0926 1.2112 1.0550Washoe, NV

6740 Richland-Kennewick-Pasco, WA ............................................................................................................................. 1.0241 1.0334 1.1460Benton, WAFranklin, WA

6760 Richmond-Petersburg, VA ....................................................................................................................................... 0.7927 0.8517 0.9617Charles City County, VAChesterfield, VAColonial Heights City, VADinwiddie, VAGoochland, VAHanover, VAHenrico, VA





SNF98 SNF99 HOSP


Hopewell City, VANew Kent, VAPetersburg City, VAPowhatan, VAPrince George, VARichmond City, VA

6780 Riverside-San Bernardino, CA ................................................................................................................................ 1.0127 1.0086 1.1239Riverside, CASan Bernardino, CA

6800 Roanoke, VA ........................................................................................................................................................... 0.7443 0.8052 0.8750Botetourt, VARoanoke, VARoanoke City, VASalem City, VA

6820 Rochester, MN ......................................................................................................................................................... 1.1764 1.1235 1.1315Olmsted, MN

6840 Rochester, NY ......................................................................................................................................................... 1.0708 1.0488 0.9182Genesee, NYLivingston, NYMonroe, NYOntario, NYOrleans, NYWayne, NY

6880 Rockford, IL ............................................................................................................................................................. 0.8844 0.9617 0.8819Boone, ILOgle, ILWinnebago, IL

6895 Rocky Mount, NC .................................................................................................................................................... 0.9221 0.8247 0.8849Edgecombe, NCNash, NC

6920 Sacramento, CA ...................................................................................................................................................... 1.0230 1.0580 1.1950El Dorado, CAPlacer, CASacramento, CA

A6960 Saginaw-Bay City-Midland, MI .............................................................................................................................. 0.8510 0.9002 0.9575Bay, MIMidland, MISaginaw, MI

6980 St. Cloud, MN .......................................................................................................................................................... 0.8480 0.9556 1.0016Benton, MNStearns, MN

7000 St. Joseph, MO ........................................................................................................................................................ 1.1074 1.0774 0.9071Andrews, MOBuchanan, MO

7040 St. Louis, MO–IL ...................................................................................................................................................... 0.8900 0.9056 0.9049Clinton, ILJersey, ILMadison, ILMonroe, ILSt. Clair, ILFranklin, MOJefferson, MOLincoln, MOSt. Charles, MOSt. Louis, MOSt. Louis City, MOWarren, MOSullivan City, MO

7080 Salem, OR ............................................................................................................................................................... 0.9308 0.8379 1.0189Marion, ORPolk, OR

7120 Salinas, CA .............................................................................................................................................................. 1.0856 1.1224 1.4502Monterey, CA

7160 Salt Lake City-Ogden, UT ....................................................................................................................................... 0.9984 0.9405 0.9807Davis, UTSalt Lake, UTWeber, UT

7200 San Angelo, TX ....................................................................................................................................................... 0.8222 0.7841 0.8083Tom Green, TX

7240 San Antonio, TX ...................................................................................................................................................... 0.8252 0.8159 0.8580Bexar, TXComal, TXGuadalupe, TXWilson, TX

7320 San Diego, CA ......................................................................................................................................................... 1.0177 1.0038 1.1784San Diego, CA

7360 San Francisco, CA .................................................................................................................................................. 1.1958 1.1930 1.4156





SNF98 SNF99 HOSP


Marin, CASan Francisco, CASan Mateo, CA

7400 San Jose, CA .......................................................................................................................................................... 1.0787 1.1736 1.3652Santa Clara, CA

7440 San Juan-Bayamon, PR .......................................................................................................................................... 0.5454 0.5070 0.4690Aguas Buenas, PRBarceloneta, PRBayamon, PRCanovanas, PRCarolina, PRCatano, PRCeiba, PRComerio, PRCorozal, PRDorado, PRFajardo, PRFlorida, PRGuaynabo, PRHumacao, PRJuncos, PRLos Piedras, PRLoiza, PRLuguillo, PRManati, PRMorovis, PRNaguabo, PRNaranjito, PRRio Grande, PRSan Juan, PRToa Alta, PRToa Baja, PRTrujillo Alto, PRVega Alta, PRVega Baja, PRYabucoa, PR

7460 San Luis Obispo-Atascadero-Paso Robles, CA ...................................................................................................... 1.0873 0.9472 1.0673San Luis Obispo, CA

7480 Santa Barbara-Santa Maria-Lompoc, CA ............................................................................................................... 0.9547 1.0338 1.0597Santa Barbara, CA

7485 Santa Cruz-Watsonville, CA .................................................................................................................................... 1.1349 0.9398 1.4040Santa Cruz, CA

7490 Santa Fe, NM ............................................................................................................................................................. 0.8636 1.3115 1.0537Los Alamos, NMSanta Fe, NM

7500 Santa Rosa, CA ....................................................................................................................................................... 1.0368 1.1709 1.2646Sonoma, CA

7510 Sarasota-Bradenton, FL .......................................................................................................................................... 1.0006 1.0294 0.9809Manatee, FLSarasota, FL

7520 Savannah, GA ......................................................................................................................................................... 0.8804 0.7861 0.9697Bryan, GAChatham, GAEffingham, GA

7560 Scranton-Wilkes-Barre-Hazleton, PA ...................................................................................................................... 1.0313 1.0346 0.8421Columbia, PALackawanna, PALuzerne, PAWyoming, PA

7600 Seattle-Bellevue-Everett, WA .................................................................................................................................. 1.1078 1.0440 1.0996Island, WAKing, WASnohomish, WA

7610 Sharon, PA .............................................................................................................................................................. 1.0333 0.9605 0.7928Mercer, PA

7620 Sheboygan, WI ........................................................................................................................................................ 1.1775 1.2892 0.8379Sheboygan, WI

7640 Sherman-Denison, TX ............................................................................................................................................. 0.8663 0.8372 0.8694Grayson, TX

7680 Shreveport-Bossier City, LA .................................................................................................................................... 0.7241 0.6735 0.8750Bossier, LACaddo, LAWebster, LA

7720 Sioux City, IA–NE ................................................................................................................................................... 0.9021 0.9063 0.8473Woodbury, IADakota, NE

7760 Sioux Falls, SD ........................................................................................................................................................ 0.8511 0.9286 0.8790





SNF98 SNF99 HOSP


Lincoln, SDMinnehaha, SD

7800 South Bend, IN ........................................................................................................................................................ 1.0075 1.0621 1.0000St. Joseph, IN

7840 Spokane, WA ........................................................................................................................................................... 0.9486 0.9854 1.0513Spokane, WA

7880 Springfield, IL ........................................................................................................................................................... 0.8276 0.9314 0.8685Menard, ILSangamon, IL

7920 Springfield, MO ........................................................................................................................................................ 0.9289 0.9309 0.8488Christian, MOGreene, MOWebster, MO8003 Springfield, MA ................................................................................................................................................. 1.2171 1.1537 1.0637Hampden, MAHampshire, MA

8050 State College, PA .................................................................................................................................................... 1.0164 0.9558 0.9038Centre, PA

8080 Steubenville-Weirton, OH–WV ................................................................................................................................ 0.9182 0.9057 0.8548Jefferson, OHBrooke, WVHancock, WV

8120 Stockton-Lodi, CA .................................................................................................................................................... 0.9860 1.0313 1.0629San Joaquin, CA

8140 Sumter, SC .............................................................................................................................................................. 0.7762 0.8687 0.8271Sumter, SC

8160 Syracuse, NY ........................................................................................................................................................... 1.0121 1.0499 0.9549Cayuga, NYMadison, NYOnondaga, NYOswego, NY

8200 Tacoma, WA ............................................................................................................................................................ 0.9407 0.9441 1.1564Pierce, WA

8240 Tallahassee, FL ....................................................................................................................................................... 0.9658 0.9761 0.8545Gadsden, FLLeon, FL

8280 Tampa-St. Petersburg-Clearwater, FL .................................................................................................................... 1.0177 1.0025 0.8982Hernando, FLHillsborough, FLPasco, FLPinellas, FL

8320 Terre Haute, IN ........................................................................................................................................................ 0.8222 0.8286 0.8304Clay, INVermillion, INVigo, IN

8360 Texarkana, AR-Texarkana, TX ................................................................................................................................ 0.8290 0.8049 0.8363Miller, ARBowie, TX

8400 Toledo, OH .............................................................................................................................................................. 0.9963 0.9904 0.9832Fulton, OHLucas, OHWood, OH

8440 Topeka, KS .............................................................................................................................................................. 0.7969 0.8241 0.9117Shawnee, KS

8480 Trenton, NJ .............................................................................................................................................................. 1.1897 1.1835 1.0137Mercer, NJ

8520 Tucson, AZ .............................................................................................................................................................. 0.9488 0.9534 0.8794Pima, AZ

8560 Tulsa, OK ................................................................................................................................................................. 0.8445 0.8104 0.8454Creek, OKOsage, OKRogers, OKTulsa, OKWagoner, OK

8600 Tuscaloosa, AL ........................................................................................................................................................ 0.8490 0.8208 0.8064Tuscaloosa, AL

8640 Tyler, TX .................................................................................................................................................................. 0.8607 0.8562 0.9404Smith, TX

8680 Utica-Rome, NY ....................................................................................................................................................... 0.9634 0.9279 0.8560Herkimer, NYOneida, NY

8720 Vallejo-Fairfield-Napa, CA ....................................................................................................................................... 1.1949 1.1287 1.2847Napa, CASolano, CA

8735 Ventura, CA ............................................................................................................................................................. 1.0838 1.0338 1.1030Ventura, CA

8750 Victoria, TX .............................................................................................................................................................. 0.7002 0.7270 0.8154





SNF98 SNF99 HOSP


Victoria, TX8760 Vineland-Millville-Bridgeton, NJ ............................................................................................................................... 1.1806 1.1019 1.0501

Cumberland, NJ8780 Visalia-Tulare-Porterville, CA .................................................................................................................................. 0.9010 0.9027 0.9551

Tulare, CA8800 Waco, TX ................................................................................................................................................................. 0.8453 0.8291 0.8314

McLennan, TX8840 Washington, DC–MD–VA–WV ................................................................................................................................ 1.0430 1.0368 1.0755

District of Columbia, DCCalvert, MDCharles, MDFrederick, MDMontgomery, MDPrince Georges, MDAlexandria City, VAArlington, VAClarke, VACulpepper, VAFairfax, VAFairfax City, VAFalls Church City, VAFauquier, VAFredericksburg City, VAKing George, VALoudoun, VAManassas City, VAManassas Park City, VAPrince William, VASpotsylvania, VAStafford, VAWarren, VABerkeley, WVJefferson, WV

8920 Waterloo-Cedar Falls, IA ......................................................................................................................................... 0.8201 0.8820 0.8404Black Hawk, IA

8940 Wausau, WI ............................................................................................................................................................. 1.1470 1.2648 0.9418Marathon, WI

8960 West Palm Beach-Boca Raton, FL ......................................................................................................................... 1.0131 0.9912 0.9682Palm Beach, FL

9000 Wheeling, OH–WV .................................................................................................................................................. 0.9131 0.9078 0.7733Belmont, OHMarshall, WVOhio, WV

9040 Wichita, KS .............................................................................................................................................................. 0.9211 0.9050 0.9544Butler, KSHarvey, KSSedgwick, KS

9080 Wichita Falls, TX ..................................................................................................................................................... 0.7375 0.7385 0.7668Archer, TXWichita, TX

9140 Williamsport, PA ...................................................................................................................................................... 0.9543 1.0264 0.8392Lycoming, PA

9160 Wilmington-Newark, DE–MD ................................................................................................................................... 1.0931 1.0284 1.1191New Castle, DECecil, MD

9200 Wilmington, NC ........................................................................................................................................................ 0.9507 0.8675 0.9402New Hanover, NCBrunswick, NC

9260 Yakima, WA ............................................................................................................................................................. 0.9038 0.8770 0.9907Yakima, WA

9270 Yolo, CA .................................................................................................................................................................. 1.0452 1.0260 1.0199Yolo, CA

9280 York, PA .................................................................................................................................................................. 1.0718 1.0923 0.9264York, PA

9320 Youngstown-Warren, OH ........................................................................................................................................ 0.8731 0.8594 0.9543Columbiana, OHMahoning, OHTrumbull, OH

9340 Yuba City, CA .......................................................................................................................................................... 1.0615 1.0246 1.0706Sutter, CAYuba, CA

9360 Yuma, AZ ................................................................................................................................................................. 0.9209 0.9020 0.9529Yuma, AZ



TABLE 8.—WAGE INDEX FOR RURAL AREAS

Rural areaWage index

SNF98 SNF99 HOSP


Alabama ............................................................................................................................................. 0.7724 0.8020 0.7489Alaska ................................................................................................................................................ 1.4132 1.3582 1.2392Arizona ............................................................................................................................................... 1.0111 0.9175 0.8317Arkansas ............................................................................................................................................ 0.6972 0.7278 0.7445California ............................................................................................................................................ 0.9685 0.9712 0.9861Colorado ............................................................................................................................................ 0.8710 0.9147 0.8968Connecticut ........................................................................................................................................ 1.2870 1.0540 1.1715Delaware ............................................................................................................................................ 1.0854 0.9338 0.9074Florida ................................................................................................................................................ 0.8331 0.8921 0.8919Georgia .............................................................................................................................................. 0.7850 0.7985 0.8329Guam ................................................................................................................................................. 0.0000 0.0000 0.9611Hawaii ................................................................................................................................................ 1.1915 1.2995 1.1059Idaho .................................................................................................................................................. 0.8892 0.8320 0.8678Illinois ................................................................................................................................................. 0.8296 0.8274 0.8160Indiana ............................................................................................................................................... 0.8875 0.9008 0.8602Iowa ................................................................................................................................................... 0.7706 0.7834 0.8030Kansas ............................................................................................................................................... 0.7562 0.7941 0.7605Kentucky ............................................................................................................................................ 0.8237 0.7905 0.7931Louisiana ............................................................................................................................................ 0.6699 0.7014 0.7681Maine ................................................................................................................................................. 0.8766 0.8908 0.8766Maryland ............................................................................................................................................ 0.9015 0.8780 0.8651Massachusetts ................................................................................................................................... 1.1740 1.2039 1.1204Michigan ............................................................................................................................................. 0.9505 0.9655 0.8987Minnesota .......................................................................................................................................... 1.1396 1.0221 0.8881Mississippi .......................................................................................................................................... 0.7412 0.7885 0.7491Missouri .............................................................................................................................................. 0.7904 0.7898 0.7698Montana ............................................................................................................................................. 0.8996 0.8606 0.8688Nebraska ............................................................................................................................................ 0.7977 0.8182 0.8109Nevada ............................................................................................................................................... 0.8621 0.9222 0.9232New Hampshire ................................................................................................................................. 1.1065 1.1171 0.9845New Jersey 1 ...................................................................................................................................... ...................... ...................... ......................New Mexico ....................................................................................................................................... 0.6834 0.8052 0.8497New York ........................................................................................................................................... 1.0081 0.9981 0.8499North Carolina .................................................................................................................................... 0.9255 0.9028 0.8445North Dakota ...................................................................................................................................... 0.7649 0.7779 0.7716Ohio ................................................................................................................................................... 0.8895 0.8948 0.8670Oklahoma ........................................................................................................................................... 0.7481 0.7275 0.7491Oregon ............................................................................................................................................... 0.8616 0.8455 1.0132Pennsylvania ...................................................................................................................................... 0.9870 0.9443 0.8578Puerto Rico ........................................................................................................................................ 0.3897 0.3866 0.4264Rhode Island 1 .................................................................................................................................... ...................... ...................... ......................South Carolina ................................................................................................................................... 0.7941 0.8367 0.8370South Dakota ..................................................................................................................................... 0.7946 0.8373 0.7570Tennessee ......................................................................................................................................... 0.8656 0.8415 0.7838Texas ................................................................................................................................................. 0.7512 0.7528 0.7502Utah ................................................................................................................................................... 0.9492 0.8196 0.9037Vermont ............................................................................................................................................. 0.9914 1.0299 0.9274Virginia ............................................................................................................................................... 0.8157 0.8601 0.8189Virgin Islands ..................................................................................................................................... 0.0000 0.0000 0.6306Washington ........................................................................................................................................ 0.9539 0.9475 1.0434West Virginia ...................................................................................................................................... 0.8260 0.8668 0.8231Wisconsin ........................................................................................................................................... 0.9516 0.9893 0.8880Wyoming ............................................................................................................................................ 0.9081 0.8314 0.8817

1 All counties within the State are classified urban.

We have drawn the followingconclusions from these tables and ouranalysis of the wage data:

A comparison of the wage indexbased on hospital data with one basedon SNF-specific wage data has createdmany significant variances, not onlybetween the SNF wage index and thehospital wage index, but also betweenthe two SNF wage indexes illustrated in

Tables 7 and 8. While we would expectsome changes from year to year, andbetween a wage index based on SNFdata and one based on hospital data, webelieve that the large quantity ofsignificant variations raises questions asto the reliability of the SNF-specificwage data.

The following illustrates the impact ofusing the various wage indexescontained in Tables 7 and 8:

• When comparing the FY 1998 SNF-specific wage index to the hospital wageindex, we found the number of areasthat:Increased more than 20%—15 (the

highest was 44.59%)Increased between 10–20%—53



Increased between 5–10%—49Increased between 0–5%—64Decreased between 0–5%—69Decreased between 5–10%—56Decreased between 10–20%—51Decreased greater than 20%—12 (the

largest was 37.55%)• When comparing the FY 1999 SNF-

specific wage index to the hospital wageindex, we found the number of areasthat:Increased more than 20%—12 (the

largest was 53.86%)Increased between 10–20%—47Increased between 5–10%—67Increased between 0–5%—70Decreased between 0–5%—56Decreased between 5–10%—60Decreased between 10–20%—44Decreased greater than 20%—13 (the

largest was 33.06%)• When comparing the FY 1998 SNF-

specific wage index to the FY 1999 SNF-specific wage index, we found thenumber of areas that:Increased more than 20%—9 (the largest

was 51.86%)Increased between 10–20%—25Increased between 5–10%—52Increased between 0–5%—102Decreased between 0–5%—110Decreased between 5–10%—44Decreased between 10–20%—22Decreased greater than 20%—5 (the

largest was 33.73%)The FY 1998 and FY 1999 SNF wage

index had 6 areas with no values.For FY 1998, from a total of 13,587

freestanding providers, we eliminated2,674 providers because they had a zerovalue for wages or hours. For hospital-based SNFs, of the 2,185 providers, weeliminated 160 providers for the samereason. For FY 1999, of the 12,491freestanding providers, we eliminated2,461 providers because they had a zerovalue for wages or hours. For hospital-based SNFs, of the 2,034 providers, weeliminated 132 providers for the samereason. In addition, for FY 1998, weeliminated 231 providers that hadaverage hourly wages either below$5.00, or above the 99th percentile($24.15). For FY 1999, we eliminated206 providers with average hourlywages either below $5.00, or above the99th percentile ($24.79).

There are far fewer significantchanges between MSAs in the annualhospital wage index. The latestcomparison of the year-to-year

differences in the hospital wage index(pre-classified, pre-floor) shows only 7areas with increases of 10 percent ormore and 4 with decreases greater than10 percent. A comparison of the FY1998 and 1999 SNF-specific wageindexes shows 34 areas that experiencedan increase of 10 percent or more and27 areas with decreases of 10 percent ormore.

We believe that any changes to thewage index adjustment under the SNFPPS should support greater precision inMedicare payments; however, as a resultof the variations in the SNF-specificwage data and the large number of SNFsthat are unable to provide adequatewage and hourly data, we are concernedabout the reliability of the data used inestablishing a SNF wage index at thistime.

We continue to believe that a wageindex based on hospital wage data is thebest and most appropriate to use inadjusting payments to SNFs, since bothhospitals and SNFs compete in the samelabor markets. We invite publiccomment on the SNF-specific wagedata; however, for the reasons discussedabove we currently plan to use theupdated hospital wage data when wepublish the final rule. In addition, inaccordance with section 315(b) of BIPA2000, since we currently do not havereliable SNF-specific wage data, we arenot proposing at this time to develop orincorporate any type of geographicreclassification system for SNFs.

D. Updates to the Federal Rates

In accordance with section1888(e)(4)(E) of the Act and section 311of BIPA 2000, the proposed paymentrates listed here reflect an update equalto the SNF market basket minus 0.5percentage point, which equals 2.4percent. For each succeeding FY, wewill publish the rates in the FederalRegister before August 1 of the yearpreceding the affected Federal FY.

E. Relationship of RUG–III ClassificationSystem to Existing Skilled NursingFacility Level-of-Care Criteria

As discussed in § 413.345, we includein each update of the Federal paymentrates in the Federal Register thedesignation of those specific RUGsunder the classification system thatrepresent the required SNF level of care,as provided in § 409.30. Thisdesignation reflects an administrative

presumption that beneficiaries who arecorrectly assigned to one of the upper 26RUG–III groups in the initial 5-day,Medicare-required assessment areautomatically classified as meeting theSNF level of care definition up to thatpoint.

Those beneficiaries assigned to any ofthe lower 18 groups are notautomatically classified as eithermeeting or not meeting the definition,but instead receive an individual levelof care determination using the existingadministrative criteria. Thispresumption recognizes the stronglikelihood that beneficiaries assigned toone of the upper 26 groups during theimmediate post-hospital period requirea covered level of care, which would besignificantly less likely for thosebeneficiaries assigned to one of thelower 18 groups.

We propose to continue the existingdesignation of the upper 26 RUG–IIIgroups for purposes of thisadministrative presumption, consistingof the following RUG–III classifications:all groups within the Ultra HighRehabilitation category; all groupswithin the Very High Rehabilitationcategory; all groups within the HighRehabilitation category; all groupswithin the Medium Rehabilitationcategory; all groups within the LowRehabilitation category; all groupswithin the Extensive Services category;all groups within the Special Carecategory; and, all groups within theClinically Complex category.

F. Three-Year Transition Period

As noted previously, the rates that wenow propose are for the fourth year ofthe SNF PPS. As a result, the PPS is nolonger operating under the initial three-year transition period from facility-specific to Federal rates and, therefore,now equals 100 percent of the adjustedFederal per diem rate.

G. Example of Computation of AdjustedPPS Rates and SNF Payment

Using the XYZ SNF described inTable 9A, the following shows theadjustments made to the Federal perdiem rate to compute the provider’sactual per diem PPS payment. XYZ’s 12-month cost reporting period beginsOctober 1, 2001. Table 9B displays the44 RUG–III categories and theirrespective add-ons, as provided inBBRA 1999 and BIPA 2000.



TABLE 9.A.—SNF XYZ FROM ABOVE IS LOCATED IN STATE COLLEGE, PA WITH A WAGE INDEX OF 0.9038

RUG group Laborportion

Wageindex

Adjustedlabor

Nonlaborportion

Adjustedrate

Percentadjustment

Medicaredays Payment

RVC ........................ $257.54 0.9038 $232.76 $84.14 $316.90 $350.81 50 $17,541SSC ........................ 171.76 0.9038 155.24 56.12 211.36 3 262.09 25 6,552IA2 .......................... 113.56 0.9038 102.64 37.10 139.74 4 145.33 25 3,633

Total ............ .................... .................... .................... .................... .................... .................... 100 27,726

1 From Table 5.2 Reflects a 10.7 percent adjustment (the 4 percent adjustment from section 101(d) of BBRA 1999 and the 6.7 percent adjustment from section

314 of BIPA 2000).3 Reflects a 24 percent adjustment (the 4 percent and 20 percent adjustments from sections 101(a) and (d) of BBRA 1999).4 Reflects the 4 percent adjustment from section 101(d) of BBRA 1999.

TABLE 9.B.—BBRA 1999 & BIPA2000 ADD-ONS, BY RUG–III CAT-EGORY

RUG–IIIcategory 4% 1 10.7% 2 24% 3

RUC ................ XRUB ................. XRUA ................. XRVC ................. XRVB ................. XRVA ................. XRHC ................ XRHB ................. XRHA ................. XRMC ................ XRMB ................ XRMA ................ XRLB ................. XRLA ................. XSE3 ................. XSE2 ................. XSE1 ................. XSSC ................. XSSB ................. XSSA ................. XCC2 ................. XCC1 ................. XCB2 ................. XCB1 ................. XCA2 ................. XCA1 ................. XIB2 ................... XIB1 ................... XIA2 ................... XIA1 ................... XBB2 ................. XBB1 ................. XBA2 ................. XBA1 ................. XPE2 ................. XPE1 ................. XPD2 ................. XPD1 ................. XPC2 ................. XPC1 ................. XPB2 ................. XPB1 ................. XPA2 ................. XPA1 ................. X

1 From BBRA 1999.2 Includes the 4% increase from BBRA 1999

and the 6.7% increase from BIPA 2000.3 Includes the 4% and 20% increases from

BBRA 1999.

For rates addressed in this proposedrule, we are using wage index valuesthat are based on hospital wage data

from cost reporting periods beginning inFY 1996, the same wage data as used tocompute the FY 2001 wage index valuesfor the SNF PPS. We will incorporateupdated wage data in the final rule forthe FY 2002 SNF PPS update. XYZ’stotal PPS payment will equal $27,726.

III. The Skilled Nursing Facility MarketBasket Index

A. BackgroundSection 1888(e)(5)(A) of the Act

requires the Secretary to establish amarket basket index that reflectschanges over time in the prices of anappropriate mix of goods and servicesincluded in the SNF PPS. Effective forcost reporting periods beginning on orafter July 1, 1998, we revised andrebased our 1977 routine costs inputprice index and adopted a totalexpenses SNF input price index usingdata from 1992 as the base year.

The term ‘‘market basket’’ technicallydescribes the mix of goods and servicesneeded to produce SNF care, and is alsocommonly used to denote the inputprice index that includes both weights(mix of goods and services) and pricefactors. The term ‘‘market basket’’ usedin this proposed rule refers to the SNFinput price index.

The 1992-based SNF market basketrepresents routine costs, costs ofancillary services and capital-relatedcosts. The percentage change in themarket basket reflects the averagechange in the price of a fixed set ofgoods and services purchased by SNFsto furnish all services. For furtherbackground information, see the May12, 1998 Federal Register (63 FR26289).

For purposes of SNF PPS, the SNFmarket basket is a fixed-weight(Laspeyres type) price index. (ALaspeyres type index compares the costof purchasing a specified group ofcommodities at current prices to thecost of purchasing that same group in aselected base period.) The SNF marketbasket is constructed in three steps.First, a base period is selected and totalbase period expenditure shares are

estimated for mutually exclusive andexhaustive spending categories. Totalcosts for routine services, ancillaryservices, and capital are used. Theseproportions are called ‘‘cost’’ or‘‘expenditure weights’’. The second stepis to match each expenditure category toa price/wage variable, called a priceproxy. These price proxy variables aredrawn from publicly available statisticalseries published on a consistentschedule, preferably at least quarterly.In the final step, the price level for eachspending category is multiplied by theexpenditure weight for that category.The sum of these products (that is,weights multiplied by proxy indexlevels) for all cost categories yields thecomposite index level in the marketbasket for a given quarter or year.Repeating the third step for otherquarters and years produces a timeseries of market basket index levels,from which rates of growth can becalculated.

The market basket is described as afixed-weight index because it answersthe question of how much more or lessit would cost, at a later time, topurchase the same mix of goods andservices that was purchased in the baseperiod. The effects on total expendituresresulting from changes in the quantityor mix of goods and services purchasedsubsequent or prior to the base periodare, by design, not considered.

As discussed in the May 12, 1998Federal Register (63 FR 26252), toimplement section 1888(e)(5)(A) of theAct, we have revised and rebased themarket basket so the cost weights andprice proxies reflected the mix of goodsand services that SNFs purchase for allcosts (routine, ancillary, and capital-related) encompassed by SNF PPS infiscal year 1992.

B. Rebasing and Revising the SkilledNursing Facility Market Basket

The terms ‘‘rebasing’’ and ‘‘revising’’,while often used interchangeably,actually denote different activities.Rebasing means shifting the base yearfor the structure of costs of the input



price index (for example, for thisproposed rule, we would shift the baseyear cost structure from fiscal year 1992to fiscal year 1997). Revising meanschanging data sources, cost categories,and/or price proxies used in the inputprice index.

We are proposing to rebase and revisethe SNF market basket to reflect 1997total cost data (routine, ancillary, andcapital-related). Fiscal year 1997 wasselected as the new base year because1997 is the most recent year for whichrelatively complete data are available.These data include settled 1997Medicare Cost Reports as well as 1997data from two U.S. Department ofCommerce surveys: the Bureau of the

Census’ Business Expenditures Survey,and the Bureau of Economic Analysis’Annual Input-Output tables.Preliminary analysis of 1998 data fromMedicare Cost Reports showed littlechange in cost shares from those in the1997 Medicare Cost Reports.

In developing the proposed marketbasket, we reviewed SNF expendituredata from Medicare Cost Reports for FY1997 for each freestanding SNF that hadMedicare expenses. FY 1997 CostReports are those with cost reportingperiods beginning after September 30,1996 and before October 1, 1997. Wemaintained our policy of using datafrom freestanding SNFs because theyreflect the actual cost structure faced by

the SNF itself. By contrast, expense datafor a hospital-based SNF is influencedby the allocation of overhead over theentire institution.

Data on SNF expenditures for sixmajor expense categories (wages andsalaries, employee benefits, contractlabor, pharmaceuticals, capital-related,and a residual ‘‘all other’’) were editedand tabulated. Using these data, we thendetermined the proportion of total coststhat each category represented. The sixmajor categories for the revised andrebased cost categories and weightsderived from SNF Medicare CostReports are summarized in Table 10.A.

TABLE 10.A.—1992 AND PROPOSED 1997 SKILLED NURSING FACILITY MAJOR COST CATEGORIES AND WEIGHTS FROMMEDICARE COST REPORTS

Cost categories

1992-basedskilled nursingfacility weights

(percent)

Proposed1997-based

skilled nursingfacility weights

(percent)

Wages and Salaries ................................................................................................................................................ 47.805 46.889Employee Benefits ................................................................................................................................................... 10.023 9.631Contract Labor ......................................................................................................................................................... 12.852 6.478Pharmaceuticals ...................................................................................................................................................... 2.531 3.006Capital-related Costs ............................................................................................................................................... 9.778 9.877All Other Costs ........................................................................................................................................................ 17.012 24.119

Total Costs .................................................................................................................................................... 100.000 100.000

We fully discuss the methodology fordeveloping these weights in theAppendix. The main methodologicaldifference between the 1992-based SNFmarket basket and the proposed 1997-based market basket is in the calculationof the contract labor weight. For the1992-based market basket, we estimatedthis share using non-salary costs fortherapy cost centers. For the proposed1997-based index, we used the contractlabor amounts for a subset of editedreports from Worksheet S–3 in theMedicare Cost Reports. We believe thisnew methodology provides a moreaccurate reflection of the share of totalcosts that are attributable to contractlabor. The data from this worksheetwere not available in the 1992 MedicareCost Reports.

Relative weights within the six majorcategories were derived using relativecost shares from the Bureau of theCensus’ 1997 Business ExpendituresSurvey (BES), 1997 Medicare CostReports, and the Bureau of EconomicAnalysis’ (BEA) 1997 Annual Input-Output tables. They were used todisaggregate and allocate costs withinthe six major categories determinedfrom the 1997 SNF Medicare CostReports. The BEA Input-Output

database is benchmarked at 5-yearintervals and updated annually betweenbenchmarks. We are using the annualupdate for 1997. The BES is updatedevery five years.

The capital-related portion of theproposed rebased and revised SNF PPSmarket basket employs the same overallmethodology used to develop thecapital-related portion of the 1992-basedSNF market basket, described in theMay 12, 1998 Federal Register (63 FR26289). It is also the same methodologyused for the inpatient hospital PPScapital input price index described inthe Federal Register May 31, 1996 (61FR 27466) and August 30, 1996 (61 FR46196). The strength of thismethodology is that it reflects thevintage nature of capital, whichrepresents the acquisition and use ofcapital over time.

Our work resulted in 21 separatecategories for the proposed rebased andrevised SNF market basket. The 1992-based total cost SNF market basket alsohad 21 separate cost categories. Detaileddescriptions of each cost category andrespective price proxy in the proposed1997-based SNF market basket areprovided in the Appendix to thisproposed rule.

As in the 1992-based SNF marketbasket, the proposed 1997-based SNFmarket basket does not include aseparate cost category for professionalliability insurance. Our analysis of theBEA 1997 Annual Input-Output surveyindicated that the general category forinsurance carriers (which includesprofessional liability insurance as asubset) was, at just 0.2 percent, a smallshare of the total costs in 1997. It hasbeen our policy in the past not toprovide detailed breakouts of costcategories unless they represent asignificant portion of the providers’costs. We also reviewed data availableon professional liability insurance fromWorksheet S–2 of the SNF MedicareCost Reports, but found that nearly allSNFs did not report data for malpracticepremiums, paid losses, or self-insurancein 1997.

Professional liability insurance isincluded with other insurance paid tocarriers in the all other labor-intensiveservices cost category. We are solicitingcomments on possible data sources forprofessional liability insurance costs forSNFs. Recent indications are thatprofessional liability insurance costs forSNFs are rising quickly. We are lookingboth for information that would be



available for a cost weight as well as fora time-series of professional liabilitypremiums for a constant level ofcoverage, similar to the data wecurrently collect for hospitals andphysicians from a small sample ofinsurance carriers.

After the 21 cost weights for theproposed revised and rebased SNFmarket basket were developed, weselected the most appropriate wage andprice proxies currently available tomonitor the rate of change for eachexpenditure category. With threeexceptions (all for the capital-relatedexpenses cost category), the wage andprice proxies are based on Bureau ofLabor Statistics (BLS) data and aregrouped into one of the following BLScategories:

• Employment Cost Indexes.Employment Cost Indexes (ECIs)measure the rate of change in

employment wage rates and employercosts for employee benefits per hourworked. These indexes are fixed-weightindexes and strictly measure the changein wage rates and employee benefits perhour. They are not affected by shifts inoccupation or industry mix. ECIs aresuperior to Average Hourly Earnings(AHEs) as price proxies for input priceindexes for two reasons: (1) Theymeasure pure price change, and (2) theyare available by both occupational groupand by industry.

• Producer Price Indexes. ProducerPrice Indexes (PPIs) measure pricechanges for goods sold in other thanretail markets. PPIs were used when thepurchases of goods or services weremade at the wholesale level.

• Consumer Price Indexes. ConsumerPrice Indexes (CPIs) measure change inthe prices of final goods and servicesbought by consumers. CPIs were only

used when the purchases were similarto those of retail consumers rather thanpurchases at the wholesale level, or ifno appropriate PPI was available.

The contract labor weight of 6.478was reallocated to (1) wages andsalaries, and (2) employee benefits, sothat the same price proxies that wepropose to use for direct labor costs areapplied to contract costs. While weunderstand that the level of unit laborcosts for contract labor can differ fromthe unit labor costs of a SNF employee,we feel that the rate at which these laborcosts change should be similar. That is,unit contract labor costs should notgrow any more or less rapidly than SNFemployee labor costs. The rebased andrevised cost categories, weights, andprice proxies for the proposed 1997-based SNF market basket are listed inTable 10.B.

TABLE 10.B.—PROPOSED 1997-BASED SNF MARKET BASKET COST CATEGORIES, WEIGHTS, AND PRICE PROXIES

Cost category

1997-basedskilled nursingfacility marketbasket weight

Price proxy

Operating Expenses ................................................................... 90.123Compensation ............................................................................. 62.998

Wages and Salaries ............................................................ 52.263 ECI for Wages and Salaries for Private Nursing Homes.Employee benefits ............................................................... 10.734 ECI for Benefits for Private Nursing Homes.

Nonmedical professional fees ..................................................... 2.634 ECI for Compensation for Private Professional, Technical andSpecialty workers.

Utilities ......................................................................................... 2.368Electricity .............................................................................. 1.420 PPI for Commercial Electric Power.Fuels, nonhighway ............................................................... 0.426 PPI for Commercial Natural Gas.Water and sewerage ........................................................... 0.522 CPI–U for Water and Sewarge.

Other Expenses .......................................................................... 22.123Other Products ............................................................................ 13.522

Pharmaceuticals .................................................................. 3.006 PPI for Prescription Drugs.Food ..................................................................................... 4.136

Food, wholesale purchase ........................................... 3.198 PPI for Processed Foods.Food, retail purchase .................................................... 0.937 CPI–U for Food Away From Home.

Chemicals ............................................................................ 0.891 PPI for Industrial Chemicals.Rubber and plastics ............................................................. 1.611 PPI for Rubber and Plastic Products.Paper products .................................................................... 1.289 PPI for Converted Paper and Paperboard.Miscellaneous products ....................................................... 2.589 PPI for Finished Goods less Food and Energy.

Other Services ............................................................................ 8.602Telephone Services ............................................................. 0.448 CPI–U for Telephone Services.Labor-intensive Services ..................................................... 4.094 ECI for Compensation for Private Service Occupations.Non labor-intensive services ............................................... 4.059 CPI–U for All Items.

Capital-related Expenses ............................................................ 9.877Total Depreciation ....................................................................... 5.266

Building & Fixed Equipment ................................................ 3.609 Boeckh Institutional Construction Index (vintage-weighted over23 years).

Movable Equipment ............................................................. 1.657 PPI for Machinery & Equipment (vintage-weighted over 10years).

Total Interest ............................................................................... 3.852Government & Nonprofit SNFs ............................................ 1.890 Average Yield Municipal Bonds (Bond Buyer Index-20 bonds)

(vintage-weighted over 22 years).For-Profit SNFs .................................................................... 1.962 Average Yield Moody’s AAA Bonds (vintage-weighted over 22

years).Other Capital-related Expenses .................................................. 0.760 CPI–U for Residential Rent.

0Total ............................................................................... * 100.000

* Total may not equal 100 due to rounding



In the proposed 1997-based SNFmarket basket, the labor-related sharefor FY 1997 is 73.588 percent, while thenon-labor-related share is 26.412percent. The labor-related share reflectsthe proportion of the average SNF’scosts that vary with local area wages.This share includes wages and salaries,employee benefits, professional fees,labor-intensive services, and a 39.1percent share of capital-relatedexpenses, as shown in Table 10.C. Bycomparison, the labor-related share ofthe 1992-based SNF market basket was75.888 percent. The labor-related shareof the market basket is the sum of theweights for those cost categories that areinfluenced by the local labor market.The labor-related share is calculatedfrom the base year, which for theproposed SNF market basket is FY 1997.

The labor-related share for capital-related expenses was estimated using astatistical analysis of individual SNFMedicare Cost Reports for 1997, similarto the analysis done on the 1992 SNFMedicare Cost Reports and explained inthe May 12, 1998 Federal Register (63FR 26289). The statistical analysis wasnecessary because the proportion of

capital-related expenses related to localarea wage costs cannot be directlydetermined from the SNF capital-relatedportion of the market basket. We usedregression analysis with total costs perday in SNFs as the dependent variableand relevant explanatory variables forsize, complexity, efficiency, age ofcapital, and local wage variation. Toaccount for these factors, we usednumber of beds, case-mix indexes,occupancy rate, ownership, age ofassets, length of stay, FTEs per bed, andwage index values based on the hospitalwage index (wages and employeebenefits) as independent variables. Ourregression analysis indicated that thecoefficient on the area wage index was73.588, which represents the proportionof total costs that vary with local labormarkets, holding constant other factors.From the operating portion of themarket basket, we can specificallyidentify cost categories that reflect locallabor markets and include them in thelabor-related share. These costcategories equal 69.727, and reflectapproximately 77 percent of operatingcosts. Thus, the labor-related share forcapital-related costs is 3.861 (73.588

minus 69.727), and reflectsapproximately 39 percent of capital-related costs.

Capital-related expenses aredetermined in some proportion by localarea labor costs (such as constructionworker wages and building materialscosts) that are reflected in the price ofthe capital asset. However, many otherinputs that determine capital costs arenot related to local area wage costs, suchas equipment prices and interest rates.Thus, it is appropriate that capital-related expenses would vary less withlocal wages than would operatingexpenses for SNFs. Therefore, we areproposing to use this analysis indetermining the labor-related share forSNF PPS.

All price proxies for the proposedrevised and rebased SNF market basketare listed in Table 10.B and summarizedin the Appendix to this proposed rule.A comparison of the yearly historicalpercent changes from FY 1995 throughFY 2000 for the current 1992-basedmarket basket and the proposed 1997-based market basket is shown in Table10.D.

TABLE 10.C.—1992 AND PROPOSED 1997-BASED LABOR-RELATED SHARE

Cost category

1992-basedskilled nursingfacility marketbasket weight

Proposed1997-based

skilled nursingfacility marketbasket weight

Wages and Salaries ................................................................................................................................................ 54.262 52.263Employee Benefits ................................................................................................................................................... 12.797 10.734Nonmedical Professional Fees ................................................................................................................................ 1.916 2.634Labor-intensive Services ......................................................................................................................................... 3.686 4.094Capital-related .......................................................................................................................................................... 3.227 3.861

Total .............................................................................................................................................................. 75.888 73.588

TABLE 10.D.—COMPARISON OF THE 1992-BASED SKILLED NURSING FACILITY MARKET BASKET AND THE PROPOSED1997-BASED SKILLED NURSING FACILITY MARKET BASKET, PERCENT CHANGES, 1995–2000

Fiscal years beginning October 1

1992-basedskilled nursingfacitlity market

basket

Proposed1997-based

skilled nursingfacility market

basket

Historical:October 1994, FY 1995 .................................................................................................................................... 2.9 3.0October 1995, FY 1996 .................................................................................................................................... 2.7 2.7October 1996, FY 1997 .................................................................................................................................... 2.4 2.4October 1997, FY 1998 .................................................................................................................................... 2.8 2.8October 1998, FY 1999 .................................................................................................................................... 3.1 3.0October 1999, FY 2000 .................................................................................................................................... 4.1 4.0

Historical average 1995–2000: ................................................................................................................................ 3.0 3.0

Released by HCFA, OACT, National Health Statistics Group.

The historical average rate of growthfor 1995 through 2000 for the proposedSNF 1997-based market basket is similarto that of the 1992-based market basket.

The proposed 1997-based SNF marketbasket provides a more current measureof the annual price increases for totalcare than the 1992-based SNF market

basket because the cost weights reflectthe structure of costs for the most recentyear for which there are relativelycomplete data. The forecasted rates of



growth for FY 2002 for the proposed 1997-based and current 1992-based SNFmarket basket are shown in Table 10.E.

TABLE 10.E.—COMPARISON OF FORECASTED CHANGE FOR THE 1992-BASED SKILLED NURSING FACILITY MARKETBASKET, AND THE PROPOSED 1997-BASED SKILLED NURSING FACILITY MARKET BASKET PERCENT CHANGE FOR FY 2002

Fiscal Year beginning October 1

1992-basedskilled nursingfacility market

basket

1997-basedskilled nursingfacility market

basket

October 2001, FY 2002 ........................................................................................................................................... 3.0 2.9

Source: Standard & Poor’s DRI HCC, 1st QTR, 2001; @ USMARCRO/MODTREND@CISSIM/TRENDLONG0201.Released by HCFA, OACT, National Health Statistics Group.

IV. Update Framework

A. The Need for an Update Framework

Medicare payments to SNFs are basedon a predetermined national paymentamount per day. Annual updates tothese payments are required by section1888(e) of the Act. These updates areusually based on the increase in theSNF market basket. For FY 2002, theupdate is set at market basket minus 0.5percent. Our goal is to develop a methodfor analyzing and comparing expectedtrends in the underlying cost per day touse in establishing these updates.

The SNF market basket, or input priceindex, developed by HCFA’s Office ofthe Actuary (OACT) is just onecomponent in the SNF cost per dayamount. It captures only the pure pricechange of inputs (labor, materials, andcapital) used by the SNF to produce aconstant quantity and quality of care.Other factors also contribute to thechange in costs per day, which includechanges in case-mix, intensity, andproductivity.

Under the inpatient hospital PPS,HCFA and MedPAC use an updateframework to account for these otherfactors and to make annualrecommendations to the Congressconcerning the magnitude of the update.We are currently examining thesefactors and exploring ways that theycould be incorporated into an update

framework for the SNF PPS. We are alsoexamining some additional conceptualand data issues that must be consideredwhen the framework is constructed andapplied.

We are not proposing to apply anupdate framework in a recommendationto the Congress at this time. We areactively pursing development effortsaimed at producing an analyticalframework which, by informing policymakers concerning the magnitude ofannual updates, would support thecontinued appropriateness andrelevance of the payment rates forservices provided to beneficiaries inSNFs. To this end, we are requestingcomments concerning the conceptualapproach we have outlined in thisproposed rule, including the utility andfeasibility of this approach for SNFs. Weare specifically interested in commentsconcerning whether certain factorsshould be accounted for in theframework, and suggestions concerningpotential data sources and analysis tosupport the model. As with the existingmethodology, the features of a SNF-specific update framework would needto be based on a sound policy andmethodology.

B. Factors Inherent in SNF Paymentsper Day

In order to understand the factors thatdetermine SNF costs per day, it is first

necessary to understand the factors thatdetermine SNF payments per day.Payments per day under SNF PPS arebased on the cost and an implicitnormal profit margin to the SNF inproviding an efficient level of care. Wehave developed a methodology toidentify a mutually exclusive andexhaustive set of factors included inSNF payments per day. The discussionhere details a set of equations to identifythese factors.

In its simplest form, the averagepayment per day to a SNF can beseparated into a cost term and a profitterm as shown in equation (1):

1( ) = +Payments

Days

Costs

Days

Profits

DaysThis equation can be made

multiplicative by converting profit perday into a profit rate as shown inequation (2):

2( ) = ∗Payments

Days

Costs

Days

Payments

CostsAn output price term can be

introduced into the equation bymultiplying and dividing through byinput prices and productivity. As shownin equation (3), the term inside thebrackets represents the output price,since an output price reflects the inputprice and profit margin adjusted forproductivity:

3( ) = ∗ ∗

∗Payments

Days

Costs

Days

Payments Input Prices

Productivity

Productivity

Input PricesCosts

The cost per day term can be further separated by accounting for real case-mix. Under SNF PPS, Resource UtilizationGroups (RUGs) are used to classify patients. Based on accurate RUG classification data, average real case-mix per daycan be incorporated, as shown in equation (4):

4( ) = ∗ ∗ ∗

∗Payments

Days

Costs/Days

Real Case Mix/Days

Real Case Mix

Days

Payments Input Prices

Productivity

Productivity

Input PricesCosts



The term ‘‘real’’ is imperative here because only true case-mix should be measured, not case-mix caused by impropercoding behavior. By rearranging the terms in equation (4), a set of mutually exclusive and exhaustive factors suchas those shown in equation (5) can be identified:

51( ) =

∗∗

∗ ∗ ∗ ∗Payments

Days

CostsDays

Input PricesReal Case Mix

Days

ProductivityReal Case Mix

Days ProductivityInput Prices

Payments

Costs

The term of the equation in brackets can be analyzed in two steps. First, excluding the productivity term fromthe equation results in case-mix adjusted real cost per day, which is input intensity per day. Second, multiplyinginput intensity by productivity results in case-mix adjusted real payment per day, or output intensity per day. Therationale behind this step is explained in detail in the next section.

The result of this exercise is that SNF payment per day can be determined from the following factors:

6( )

∗

∗ ( ) ∗ ( )Payment Per Day =

Case-Mix-Constant

Real Output Intensity

Per Day

Real Case MixInput Prices Profit Margins

Productivity

Per Day

Thus, it holds that the change in SNFpayment per day is a function of thechange in these factors. In order todetermine an annual update that mostaccurately reflects the underlying cost tothe SNF of efficiently providing care,the four factors related to cost must beaccounted for when an updateframework is developed. A briefdiscussion of each factor, includingspecific conceptual and data issues, isprovided in the next section.

C. Defining Each Factor Inherent in SNFCosts per Day

Each cost factor from equation (6)above is discussed here in detail.Because this is a basic conceptualdiscussion, it is likely that moredetailed issues may be relevant that arenot explored here.

1. Input Prices

Input prices are the pure prices ofinputs used by the SNF in providingservices. When we refer to inputs we arereferring to costs, which have both aprice and a quantity component. Theprice is an input price, and the quantitycomponent reflects real inputs, or realcosts. Similarly, when we refer tooutputs, we are referring to payments,which also have both a price and aquantity component. The pricecomponent is the transaction outputprice, and the quantity component is thereal output, or real payment. The realinputs include labor, capital, andmaterials, such as drugs. By definition,an input price reflects prices that SNFsencounter in purchasing these inputs,whereas an output price reflects the

prices that buyers encounter inpurchasing SNF services. We currentlycan measure input prices using the SNFmarket basket.

2. Productivity

Productivity measures the efficiencyof the SNF in producing outputs. It isthe amount of real outputs, or realpayments, that can be produced from agiven amount of real inputs, or realcosts. For SNFs, these inputs are in theform of both labor and capital; thus,they represent multi-factor productivity,as not just labor productivity isreflected. The following set of equationsshows how multi-factor productivitycan be measured in terms of availabledata, such as payments, costs, and inputprices:

ProductivityReal Payments

Real Costs

Payments/Output Price

Costs/Input Price

Payments

Costs

Input Price

Output Price

=

= ( )( )

= ∗

Rearranging the terms, this multi-factor productivity equation was used asthe basis for incorporating an outputprice term in equation (3) above. Thisequation is the basis for understandingthe relationship between input prices,output prices, profit margins, andproductivity.

Equation (6) shows that productivityis divided through the equation,offsetting other factors. The theorybehind this offset is that if an efficientSNF in a competitive market can

produce more output with the sameamount of inputs, the full increase ininput costs does not have to be passedon by the provider to maintain a normalprofit margin.

3. Real Case-Mix per Day

Real case-mix per day is the averageoverall mix of care provided by the SNF,as measured using the RUGclassification system. Over time, ameasure of real case-mix will change ascare is given in more or less complexRUGs. Changes in the level of carewithin a RUG classification groupwould not be reflected in a case-mixmeasure based on RUGs, but insteadshould be captured in the intensityfactor of equation (6).

The important distinction here is thedifference between real and nominalcase-mix. SNFs submit claims using theRUG classification system. The case-mixreflected by the claims is considered‘‘nominal’’. However, the reportedclassification can reflect the true level ofcare provided or improper codingbehavior. An example of impropercoding behavior would be the upcoding,or case-mix ‘‘creep,’’ that took placewhen the hospital PPS wasimplemented. Any change in case-mixthat is not associated with the actuallevel of care or a true change in the levelof care provided must be excluded inorder to determine real case-mix.Section 1888(e)(4)(F) of the Act providesus with the statutory authority to makeadjustments to the unadjusted Federalper diem rates for changes caused bycase-mix creep.



4. Case-Mix-Constant Real OutputIntensity per Day

Intensity is the true underlying natureof the product or service and can takethe form of output and/or inputintensity. In the case of SNFs, outputintensity per day is associated with realpayment per day, while input intensityper day is associated with real cost perday. For example, input intensity wouldbe associated with a therapist’s hourswhen providing treatment, whereasoutput intensity would be associated

with the amount of treatments atherapist provides. The underlyingnature of SNF services is determined bysuch factors as technologicalcapabilities, increased utilization ofinputs (such as labor or drugs), site ofcare, and practice patterns. Becausethese factors can be difficult to measure,intensity per day is usually calculatedas a residual after the other factors fromequation (6) have been accounted for.

Accounting for output intensityassociated with an efficient SNF can be

more accurately analyzed using a SNF’scosts rather than its payments. Thisanalysis would also provide analternative to developing or using atransaction output price index, whichhas been difficult for the Bureau ofLabor Statistics (BLS) to measure forSNFs. The following series of equationsshows how to use the definition of anoutput price as defined earlier toconvert the equation for output intensityper day to reflect costs instead ofpayments, as used in equation (6):

Case-Mix-Constant Real Output Intensity Per DayPayments/Days

Output Prices Real Case Mix/Days

Payments/Days

Payments Input PricesProductivity

Real Case Mix/Days

Payments/Days Costs

PaymentsInput PricesProductivity

Real Case Mix/Days

Payments Costs/Days

PaymentsInput PricesProductivity

Real Case Mix/Days

Costs/DaysInput PricesProductivity

Real Case Mix/Days

Costs/Days

= [ ]∗

= [ ]∗

∗

= ∗

∗ ∗

=∗ [ ]

∗ ∗

= [ ]∗

=

Costs

[[ ]∗

∗Input Prices Real Case Mix/Days

Productivity

The last equation is identical to theterm in brackets in equation (5), case-mix-constant real input intensity perday multiplied by productivity. Thus,output intensity per day can be definedin such a way that cost data from theSNF are utilized. This equation can bebroken down even further to account fordifferent types of input intensity perday. We discuss this matter more fullyin the next section.

D. Applying the Factors That Affect SNFCosts per Day in an Update Framework

As discussed earlier, payments perday under SNF PPS must be updatedeach year. Currently, the updates arespecified by legislation as the percentchange in the SNF market basket for FY2001, the percent change in the SNFmarket basket minus 0.5 percentagepoints for FY 2002 and FY 2003, and thepercent change in the SNF marketbasket thereafter. However, it isimportant to understand the underlyingtrends in SNF costs per day for anefficient provider, especially should thechange in these costs deviate from the

legislated updates. The development ofan update framework with a soundconceptual basis will provide thiscapability.

Earlier, factors inherent in SNF costsper day were identified. Changes inthese factors determine the change inSNF costs per day. Fitting these factorsinto a framework would allow us torecommend updates each year thatappropriately reflect changes inunderlying costs for efficient SNFs.Accounting for each of these factorsfrom equation (6) under SNF PPS isdiscussed below:

• Change in case-mix constant realoutput intensity per day would beaccounted for in the update framework,reflecting the factors that affect not onlycase-mix constant real input intensityper day, but also productivity, which isdetermined separately. Factors that cancause changes in case-mix constant realinput intensity per day include, but arenot limited to, changes in site of service,changes in within-RUG case-mix,changes in practice patterns, changes in

the use of inputs, and changes intechnology available.

• As discussed earlier, changes innominal case-mix are automaticallyincluded in the payment to the SNF.However, the law gives us the authorityto make adjustments for case-mixchange due to improper codingbehavior. Therefore, the updateframework should include anadjustment to convert changes innominal case-mix per day to changes inreal case-mix per day.

• Change in multi-factor productivitywould be accounted for in the updateframework. The availability of historicaldata on input prices, payments, andcosts are useful in the analysis of thisfactor. MedPAC sets this factor as atarget under hospital PPS.

• Changes in input prices for labor,material, and capital would beaccounted for in the update framework.Our Office of the Actuary currently hasan input price index, or market basket,for SNF services. This is the marketbasket referred to in the legislatedupdates. In an update framework, a



forecast error adjustment has typicallybeen included, to reflect that theupdates are set prospectively and somedegree of forecast error is inevitable. Inthe case of the inpatient hospital PPS,this adjustment is made on a two-yearlag and only if the error exceeds adefined threshold (0.25 percentagepoints).

E. Current HCFA Inpatient Hospital PPSand Illustrative SNF PPS PaymentUpdate Frameworks

Table 11 shows the payment updateframework for the current inpatienthospital PPS and an illustrative updateframework for the SNF PPS. Some of thefactors in the inpatient hospital PPS

framework are computed using theMedicare Cost Report data, while othersare determined based on policyconsiderations. The details ofcalculating each factor for the inpatienthospital PPS framework can be found inthe August 1, 2000 Federal Register (65FR 47054) final rule that set forthupdates to the payment rates used underthe inpatient PPS. This design for a SNFupdate framework is for illustrativepurposes only, as much more workneeds to be done to determine theappropriate level of detail for eachfactor and the manner in which thefactors would be developed throughpolicy. The numbers provided for the

hospital update are only intended toserve as examples of prior updatesrecommended for the hospital PPS.

MedPAC supports the use of this typeof framework for updating paymentsand applies a similar framework whenit proposes updates to hospitalpayments in its annual recommendationto Congress. The appropriateness of thisframework for updating inpatienthospital payments was discussed in theHealth Care Financing Review, Winter1992, in an article entitled, ‘‘Are PPSPayments Adequate? Issues forUpdating and Assessing Rates.’’ Asimilar framework would be useful foranalyzing updates to SNF payments.

TABLE 11.—CURRENT HCFA HOSPITAL PPS AND ILLUSTRATIVE SNF PPS PAYMENT UPDATE FRAMEWORKS

HCFA hospital PPS update

FY 2001 cal-culated hospital

updatepercent change

Illustrative SNF PPS update

Percent Change in:HCFA PPS Hospital Market Basket ................................... 3.4 .................... HCFA SNF Market Basket.Forecast Error ..................................................................... 0.0 .................... Forecast Error.Productivity ......................................................................... ¥0.5 to ¥0.4 ... Productivity.

Output Intensity .......................................................................... 0.0 to ¥0.6 ...... Output Intensity:Science and Technology .................................................... ........................... Science and TechnologyPractice Patterns.Real within-DRG Change ................................................... ........................... Real within-RUG Change.Site of Service .................................................................... ........................... Utilization of Inputs.

Site of Service.Case-mix Adjustment Factors: ........................... Case-mix Adjustment Factors:

Projected Case-mix ............................................................ ¥0.5 ................. Nominal across-RUG Case-mix.Real across-DRG Change .................................................. 0.5 .................... Real across-RUG Change.

Total Cost per Admission .......................................................... ¥0.5 to ¥1.0 ... Total per Diem Cost.Other Policy Factors: ........................... Other Policy Factors:

Reclassification and Recalibration ..................................... 0.0 .................... None.Total Calculated Update 2.4 to 2.9 .......... Total Calculated Update.

Table data derived from the August 1, 2000 Federal Register, Medicare Program; Changes to the Hospital Inpatient Prospective PaymentSystem and Fiscal Year 2001 Rates; Final Rule.

F. Additional Conceptual and DataIssues

Three conceptual issues specific tothe SNF PPS are the relevance of a site-of-service substitution adjustment, thenecessity of an adjustment for RUGreclassification, and the handling ofone-time factors.

Under the inpatient hospital PPS, asite-of-service substitution factor(captured as part of intensity) wasnecessary because of the incentive toshift care from hospital inpatient tosuch other settings as hospitaloutpatient, SNFs, or home healthagencies (HHAs). For SNF PPS, it mustbe determined whether incentives toshift care to these other settings willcontinue or whether the SNF PPS willreduce these incentives and/or createalternative incentives to shift care out ofSNFs. It is not clear without additionalresearch in this area whether changes inbehavior created by the different

Medicare payment systems should bereflected in a SNF update framework.

A reclassification and recalibrationadjustment under the inpatient hospitalPPS is necessary to account foradditional changes in the case-mixfactor resulting from reclassifying andrecalibrating the DRG classificationsoftware. This factor is applied to thecurrent fiscal year update, but reflectsthe effect of revisions in the fiscal yeartwo years prior. MedPAC does notaccount for this adjustment in its updateframework. Whether a RUGreclassification adjustment would benecessary in the update frameworkwould depend on the data availabilityand the likelihood of revisions to RUGclassifications on a periodic basis.

There is also a question about how tohandle one-time factors, such as theincreased costs of converting computersystems to Year 2000 (Y2K) compliance.An update framework is the appropriate

mechanism to account for these items,but because of uncertainty surroundingtheir impact on costs, determining anappropriate adjustment amount may bedifficult. MedPAC has discussed thisissue in prior sessions, but was unableto agree on the exact methodology forthese types of factors.

The purpose of this conceptualdiscussion is not to determine how theidentified factors of the updateframework would be measured. We dorecognize, however, that it would beimportant to use the Medicare CostReport (MCR) and other relevant datafrom SNFs to analyze the factors thatwould account for growth in costs perday. As was the case for the inpatienthospital PPS, we will be required tomake optimal use of the MCR data as weproceed in the development of anupdate framework methodology.

The lack of historical case-mix data isanother important issue. These data are



currently being collected under contractbut will not be available for mosthistorical years. This factor may provedifficult to account for in a historicalanalysis. In addition, there is noinformation currently available to makethe distinction between real andnominal case-mix change. There are alsoconcerns about the BLS output pricemeasures for SNFs, especially duringthe first years of publication in 1996 and1997. Output prices are relevant formeasuring productivity in a historicalcontext. Most of these concerns werealso encountered and addressed in theinpatient hospital PPS updateframework.

The discussion here provides theconceptual basis for developing anupdate framework for SNF PPS thatreflects changes in the underlying costsof efficiently providing SNF services. Itis important to note that the frameworkdoes not handle distribution issues suchas geographic wage variations.

Due to some variations in technicalmethodologies for measuring the factorsof an update framework, and because ofsome of the data concerns mentionedearlier, implementing an updateframework for SNF PPS would involvemaking significant policy decisions onissues similar to those for the inpatienthospital PPS update framework. Weinvite comments on the type of datasources to use, what other factors (ifany) we should consider in an updateframework, and any additionalcomments concerning the issuesdiscussed in this proposed rule.

V. Consolidated BillingThe consolidated billing requirement

established by section 4432(b) of BBA1997 places the Medicare billingresponsibility with the SNF for virtuallyall of the services that the SNF’sresidents receive, except for a smallnumber of services that the lawspecifically identifies as being excludedfrom this provision. For services that aresubject to this provision, the originallegislation made no distinction as towhether the services were furnishedduring the course of a covered Part ASNF stay.

We have implemented consolidatedbilling only for services that arefurnished during the course of a coveredPart A SNF stay. We have notimplemented consolidated billing forthose services furnished to SNFresidents who are not in a covered PartA stay (for example, residents who haveexhausted their available days ofcoverage under the Part A SNF benefit,or who do not meet that benefit’s post-hospital or level of care requirements).As explained in the final rule of July 30,

1999 (64 FR 41671), implementing thePart B aspect of the provision wouldentail making significant systemsmodifications, which have been delayedby systems constraints that arose inconnection with achieving Y2Kcompliance.

In addition, recently enactedprovisions in BIPA 2000 have alsoaffected this aspect of consolidatedbilling. For services furnished on orafter January 1, 2001, section 313(a) ofBIPA 2000 amends section 1862(a)(18)of the Act by eliminating consolidatedbilling for most services furnished toSNF residents during noncovered stays.This amendment limits the applicationof consolidated billing to those servicesthat are furnished during the course ofa covered Part A stay, with oneexception: for SNF residents innoncovered stays, the only services forwhich the SNF retains the Medicarebilling responsibility are physical,occupational, and speech-languagetherapy. (The related requirements forfee schedule payment and appropriateHCFA Common Procedure CodingSystem (HCPCS) coding for Part B SNFservices have not been repealed, andremain the law.) We propose to revisethe regulations at § 411.15(p) to reflectthis change.

We regard the provision of therapyservices as an inherent and integralfunction of this type of facility, and webelieve that the statutory requirementfor SNFs to retain the Part B billingresponsibility for these particularservices reflects a number of policyconsiderations. First, these are servicesfor which the SNF already has thebilling responsibility under the separatePart B therapy cap provision enacted bysection 4541 of BBA 1997. In addition,unlike some types of services (such asambulance and laboratory) with whichSNFs historically have had only limitedbilling experience, most SNFs arefamiliar with the procedures involved infurnishing and billing for therapy andother skilled rehabilitation services. Infact, section 1819(a)(1) of the Actdescribes such a facility in terms ofbeing primarily engaged in furnishingskilled nursing or rehabilitation servicesto its residents. The SNF level of caredefinition in section 1814(a)(2)(B) of theAct defines a beneficiary’s access toSNF coverage under Part A as involvingthe need for and receipt of ‘‘skillednursing care * * * or other skilledrehabilitation services * * *’’.

Finally, since the inception of theMedicare program, section 1861(h)(3) ofthe Act has provided for coverage ofphysical, occupational, and speech-language therapy services under the PartA extended care benefit when furnished

either directly by the facility, or byothers under arrangements with thefacility. Thus, physical, occupational,and speech-language therapy are uniqueamong SNF services because the law hasalways explicitly provided for Part Acoverage of them when furnished underan arrangement with an outside supplierin which the SNF performs theMedicare billing for the services.

Section 313 of BIPA 2000 alsocontains a number of technical andconforming changes to reflect theamendment of section 1862(a)(18) of theAct, as discussed above. Section313(b)(1) amends section 1842(b)(6)(E)of the Act (which provides that only theSNF can receive Part B payments forservices furnished to those of itsresidents in noncovered stays), bylimiting payment to SNFs to only thosesituations in which the SNF elects tofurnish such Part B services—eitherdirectly with its own resources, orunder an arrangement with an outsidesupplier in which the SNF assumes thebilling responsibility. We are revisingthe regulations at § 410.150 to reflectthis change. This section of thelegislation also removes the existinglanguage in section 1842(b)(6)(E) of theAct that refers to services furnished toa resident of ‘‘* * * a part of a facilitythat includes a skilled nursing facility(as determined under regulations)’’. Asexplained in the May 12, 1998, SNF PPSinterim final rule (63 FR 26297), BBA1997 originally introduced this languagein order to apply the consolidatedbilling requirement not only to theportion of a nursing home that isactually certified as a Medicare SNF, butalso to any noncertified remainder:

This avoids creating a perverse incentivefor SNFs to set aside a nonparticipatingsection in which they could otherwisecircumvent the Consolidated Billingrequirement for those residents who are notin a covered Part A stay.

However, since the consolidatedbilling requirement has now beenlimited to those residents in Part Acovered stays, and physical,occupational, and speech-languagetherapy in noncovered stays, thelanguage that extended its applicabilityto the noncertified portion of a nursinghome is no longer relevant. This isreflected in our proposed change to theregulation at § 411.15.

Section 313(b)(2) of BIPA 2000amends section 1842(t) of the Act bydeleting a similar reference to thenoncertified portion of a nursing home.Section 1842(t) of the Act requires thatPart B claims for physician servicesfurnished to SNF residents (which areexcluded from consolidated billing)



must include the SNF Medicareprovider number. Section 313(b)(2) ofBIPA 2000 also expands thisrequirement to apply to Part B claimsfor all types of services furnished toSNF residents. For a SNF resident in acovered Part A stay, this expandedrequirement would apply to claims forany type of service that is excluded fromconsolidated billing (and, thus, isseparately billable to Part B by anoutside source). For residents in anoncovered stay, it would encompassclaims for all Part B services that theresident receives. We are proposing torevise the regulations at § 424.32 toreflect this change.

Section 313(b)(3) of BIPA 2000amends the existing language in section1866(a)(1)(H)(i)(I) of the Act byrequiring compliance with section1862(a)(18), as amended, under theterms of a SNF’s Medicare provideragreement. We are proposing to revisethe regulations at § 489.20 to reflect thischange. Finally, section 313(d) of BIPA2000 directs the Office of InspectorGeneral to monitor payments forservices furnished to SNF residentsduring noncovered stays, in order tohelp prevent duplicate payment or theexcessive provision of services.

VI. Application of the SNF PPS to SNFServices Furnished by Swing-BedHospitals

A. Current System for Payment ofSwing-bed Facility Services Under PartA of the Medicare Program

Section 1883 of the Act permitscertain small, rural hospitals to enterinto a swing-bed agreement, underwhich the hospital can use its beds toprovide either acute or SNF care, asneeded. Currently, Part A pays for SNFservices furnished in Medicare swing-bed hospitals on a cost-related basis,with both calculated rate andretrospective, reasonable cost-basedcomponents. Under Medicare paymentprinciples set forth in section1883(a)(2)(B) of the Act and regulationsat § 413.114, swing-bed facilities receivepayment for two major categories ofcosts: routine and ancillary.

Routine costs are the costs of thoseservices included by the provider in adaily service charge. Routine servicecosts include regular room, dietary, andnursing services, minor medicalsupplies, medical social services,psychiatric social services, and the useof certain facilities and equipment forwhich a separate charge is not made.Ancillary costs are costs for specializedservices, such as therapy, drugs, andlaboratory services, that are directlyidentifiable to individual patients.

Capital-related costs, such as the cost ofland, building, equipment, and theinterest incurred in financing theacquisition of such items, are notreimbursed separately. Instead, they areincorporated into the routine andancillary cost components of the rate.

Under Medicare rules, the reasonablecost of ancillary services is paid in full.For routine operating costs, swing-bedproviders are paid a predetermined rateequal to the average reasonable routinecost of all freestanding SNFs in thecensus region. This pre-determined rateis based on annual cost report data, isadjusted for inflation, and is calculatedon a calendar year basis. For swing-bedpayment purposes, there are nineregions.

B. Requirement of the Balanced BudgetAct of 1997 for Swing-Bed FacilityServices To Be Paid Under theProspective Payment System for SkilledNursing Facilities

Section 1888(e)(7) of the Act andsection 203 of BIPA 2000 confersauthority on the Secretary to specifywhen swing-bed hospitals becomesubject to the SNF PPS, subject to thelimitation that swing-bed hospitalscannot be paid under the SNF PPS forcost reporting periods prior to July 1,1999, and must be paid under the SNFPPS by the end of the transition perioddescribed in section 1888(e)(2)(E) of theAct. The SNF PPS transition periodends June 30, 2002, the day immediatelyfollowing the last day that any SNFcould be eligible for the blended rateprovisions established for the three-yeartransition period.

We are proposing to revise theregulations at § 413.114 to provide thatswing-bed payments be made under theSNF PPS to swing-bed hospitals for costreporting periods beginning on and afterOctober 1, 2001, to ensure that theconversion is made within the statutorytime frames. By selecting October 1,2001 as the effective date, we canintegrate the swing-bed hospitals intothe SNF PPS program using the sametime lines that are statutorily requiredfor the annual SNF PPS updates.

Under BBA 1997, this conversion tothe SNF PPS was intended to apply topayments to swing-bed facilities incritical access hospitals (CAHs) as wellas to those facilities in rural hospitals.However, section 203 of BIPA 2000exempted CAHs with swing-beds fromthe SNF PPS. Therefore, only ruralhospitals with swing-beds will besubject to the SNF PPS.

Since the application of the SNF PPSto non-CAH swing-bed providers willnot occur until the final portion of theSNF PPS phase-in period, those swing-

bed providers are not eligible for ablended rate. Upon their PPS effectivedates, all rural hospital swing-bedproviders will be paid at the per diemFederal payment rate in effect for ruralproviders when services were delivered.

Section 4407 of BBA 1997 redefinedthe movement of patients from hospitalsfrom PPS hospitals to SNFs as transfersrather then discharges. This provisionapplies to hospital discharges for 10specific DRGs (014, 113, 209, 210, 211,236, 263, 264, 429, and 483), andmandates that payment for these post-acute transfers cannot exceed the sum of50 percent of the regular transferpayment and 50 percent of the regularDRG payment. This provision applies toall transfers from a DRG hospital to aSNF that is currently reimbursed underthe SNF PPS.

Swing-bed discharges from acute toSNF-level care were specificallyexempted from this provision, andswing-bed hospitals would retain theirexempt status when they becomesubject to the SNF PPS. However, inconnection with the possiblereevaluation of the existing swing-bedconditions of participation discussed inthe following section, and the potentialfor changes associated with a change inpayment methodology, we plan tomonitor swing-bed activity to determinewhether any additional changes may benecessary. We are also mindful of theunique relationship between acute careand SNF-level services in a swing-bedfacility. For this reason, we aresoliciting comments on this issue, withparticular emphasis on both the need fora swing-bed transfer provision and theexpected impact it would have onswing-bed hospital operations. For amore detailed explanation of the policyregarding PPS hospital discharges topost-acute care providers, please seeProgram Memorandum A–98–26 (July,1998).

C. Requirements of BBRA 1999 AffectingSwing-Bed Payment and Eligibility

Section 408 of BBRA 1999 modifiedthe swing-bed provisions in section1883(b) of the Act as follows:

• Hospitals with more than 49 andfewer than 100 beds will no longer berequired to discharge beneficiaries fromswing-beds within 5 days of acommunity SNF bed becomingavailable.

• Hospitals will no longer have a capon the number of days of swing-bedservices they can provide. Therequirement that swing-bed days be nomore than 15 percent of the total beddays was removed.



• Hospitals will no longer be requiredto obtain state Certificate of Needapproval for swing-beds.

By removing the per dischargerestrictions on length of stay and theaggregate caps on the facility’s ratio ofswing-bed to acute days, these BBRA1999 provisions give swing-bedhospitals more flexibility in determininghow to use their swing-beds. UnderBBRA 1999, the implementation date ofthese amendments is to coincide withthe timeframe for the swing-bedtransition to the SNF PPS schedule. Wepropose to revise the regulations at§ 413.114 to implement this change.

Since swing-bed services are providedwithin an acute care facility and havehistorically represented short stayservices, swing-bed providers have notbeen subject to the full set ofparticipation requirements that apply toSNFs. Instead, they have been subject tothe hospital conditions of participation,plus an abbreviated set of SNFparticipation requirements specified in§ 482.66. It is not our intent to changethe swing-bed conditions ofparticipation at this time; however, weare aware that the BBRA 1999amendments may encourage swing-bedfacilities to make greater use of theirfacilities to serve beneficiaries withlonger term needs, who otherwisewould have been transferred to a SNF.We plan to monitor swing-bedutilization and practice patterns todetermine whether changes areoccurring that warrant a review ofswing-bed conditions of participation.We welcome comments on the need forand nature of changes, if any, thatwould be most helpful in ensuringcontinued high quality services inswing-bed facilities.

D. Implications of Swing-Bed FacilityConversion to the SNF PPS

The SNF PPS is an outgrowth ofsubstantial research efforts beginning inthe 1970s. It is based on the recognitionthat differences in patientcharacteristics result in different levelsof resource utilization. Unlike someolder payment methodologies that paida flat per diem amount, a case-mixsystem measures the intensity of careand services required for each patientand then translates that into a paymentlevel.

Under the SNF PPS, payment rates arebased on mean SNF costs in a base year,updated for inflation. Swing-bed routinecost reimbursement is similarly basedon a precalculated average cost.However, under the currentmethodology, swing-beds are paid at arate consisting of the average of thefreestanding nursing facility costs

within the region. In contrast, under theSNF PPS, costs are calculated usingboth freestanding and hospital-basedSNF data.

The ability to identify differences inpatient service needs is crucial to thedevelopment of a case-mix system. Forthe SNF PPS, we needed a sophisticatedpatient classification system thatspecifically captured resource use ofindividuals receiving SNF-level care.The Resource Utilization Group, version3 (RUG–III) is a 44-group patientclassification system that was designedspecifically to measure SNF-levelservices. RUG–III establishes a hierarchyof major patient types, organized intoseven major categories. Each of thesecategories is further differentiated bypatient characteristics and service needsto yield the 44 specific patient groupsused for payment. Differences in serviceuse are shown by assigning a weight orcase mix index to each RUG–III group.This weight represents the amount ofnursing and rehabilitation staff time,weighted by salary level, and isstandardized to reflect the relative valueof each group within the 44-groupsystem.

Detailed descriptions of the RUG–IIIclassification methodology are includedin the May 12, 1998 SNF PPS final rule(63 FR 25252). Additional informationon the RUG–III system is available inthe annual SNF PPS updates (64 FR41645, July 30, 1999, and 65 FR 46770,July 31, 2000). Like the DRG systemused in the inpatient hospital PPS, theRUG–III system has been automated.Program specifications, record layoutsand RUG–III coding logic may be foundon HCFA’s web site at www.hcfa.gov/medicaid/mds2.0/default.htm.

All data needed to classify a Medicarebeneficiary into one of the RUG–IIIgroups is contained in the MDS 2.0. TheMDS 2.0 is a resident assessmentinstrument used by SNFs for careplanning, quality monitoring, and SNFPPS payment. As described in Section Gbelow, we plan to use the MDS 2.0 tocalculate SNF PPS payments for swing-bed services.

All providers currently subject to theSNF PPS perform periodic MDS 2.0assessments for Medicare beneficiariesin Part A stays. Facilities then generateelectronic MDS 2.0 records, andtransmit each beneficiary’s assessmentto a designated state agency. Theseelectronic MDS 2.0 records are thentransmitted by the state agency toHCFA’s data repository. For moreinformation on MDS encoding andtransmission, see HCFA’s final rulemandating the transmission of MDSrecords (62 FR 67174, December 23,1997) and the HCFA web site at

www.hcfa.gov/medicaid/mds2.0/default.htm.

Under SNF PPS, providers musttransmit their MDS 2.0 assessments tothe appropriate state agency and receiveconfirmation that the MDS 2.0 recordhas been accepted into the state’s MDS2.0 data base before submitting a bill tothe Part A FI. Billing instructions havebeen developed for SNFs subject to theSNF PPS. Three Program Memorandumswere issued shortly after theintroduction of the SNF PPS, andprovide a basic understanding of thecurrent billing requirements (ProgramMemorandums A–98–16 (May 1998), A–98–20 (June 1998), and A–98–26 (July1998)). In addition, each Part A FI hasdeveloped its own SNF PPS trainingmaterials and billing instructions. HCFAstaff will be working with the FIs toreview these billing requirements and toidentify any changes or additionsneeded to accommodate swing bedproviders. We are soliciting commentson concerns related to billing or claimsprocessing in swing-bed facilities.

Finally, swing-bed claims are alreadysubject to medical review to ensure thatthe services provided to Medicarebeneficiaries are reasonable andnecessary, and meet Medicare’s SNFlevel of care criteria. Under the SNFPPS, these reviews will be modified toverify the accuracy of the clinical dataused to determine the RUG–III groupbilled. We will work with theappropriate contractors to finalizeprocedures for these swing-bed reviews,and we plan to publish specificinstructions and guidelines later thisyear.

E. SNF PPS Rate ComponentsThe SNF PPS methodology is

discussed in detail in the regulations at42 CFR Part 413, subpart J. As thismethodology is only now being appliedto swing-bed hospitals, the majorcomponents of the PPS Federal rate aresummarized below.

• The nursing component includesdirect nursing care and the cost of non-therapy ancillary services required byMedicare beneficiaries. This portion ofthe rate is case-mix adjusted using theRUG–III classification system describedin detail in the May 12, 1998 SNF PPSinterim final rule (63 FR 26252). Swing-bed facilities will be reimbursed underthe rural facility rates as shown in Table6.

• The therapy component includesphysical, occupational, and speech-language therapy services provided tobeneficiaries in a Part A stay and, likethe nursing component, is case-mixadjusted. Payment varies based on theactual therapy resource minutes



received by the beneficiary and reportedon the MDS assessment instrument.

• The non-case-mix therapycomponent is a standard amount tocover the cost of therapy assessments ofbeneficiaries who were determined notto need continued therapy services. Thispayment is added to the rate for allRUG–III groups except those in theRehabilitation category.

• The non-case-mix component isalso a standard amount added to the ratefor each RUG–III group to coveradministrative and capital-related costs.The specific costs included in this ratecomponent are described in the May 12,1998 SNF PPS interim final rule (63 FR26252).

The RUG–III system utilizes data fromthe MDS to determine the appropriatepayment level for nursing and therapyservices. Upon transition to PPS, swing-bed providers will be required tocomplete MDS assessments according tothe same Medicare payment assessmentschedule designated for SNFs: on the5th, 14th, 30th, 60th, and 90th days ofpost-hospital extended care (Part ASNF) services.

In addition, the portion of the Federalrate attributable to wage-related costs isadjusted by a wage index. For swing-bedfacilities, we will use the wage indexapplicable to the county in which thefacility is located or, in the absence ofa county wage index, the rural rate forthe state in which the facility is located.

F. Implementation of the SNF PPS forSwing-Bed Facilities

Under section 1888(e)(7) of the Act,swing-bed providers (other than CAHs)would be subject to the SNF PPS by theend of the SNF PPS transition perioddescribed in section 1888(e)(2)(E) of theAct. However, swing-bed services arenot subject to the consolidated billingrequirement for services furnished toSNF residents under section 1862(a)(18)of the Act, but instead are subject to thesimilar bundling requirement forservices furnished to hospital inpatientsunder section 1862(a)(14) of the Act (seesection VI.J below).

G. Use of the Resident AssessmentInstrument—Minimum Data Set (MDS2.0)

Swing-bed facilities are not currentlysubject to the clinical MDSrequirements, but will be requiredunder the PPS to perform the Medicare-required MDS assessments.

The MDS required for paymentpurposes includes the MDS face sheet,Sections AA–R, and Section T. Inaddition, swing-bed providers, like

other nursing facilities, must completethe discharge and reentry tracking formsas appropriate to track the beneficiary’smovement into and out of the post-acutecare facility. Swing-bed facilities thatalso participate in the Medicaidprogram may also be required, at Stateoption, to complete Section S.

When completing the MDS, swing-bed facility staff should use theinstructions in the Long Term Care RAIUser’s Manual. A copy of this manual isavailable on the HCFA web site atwww.hcfa.gov/medicaid/mds20/man-form.htm and is also available forpurchase.

The types of assessments used tosupport SNF PPS billing are describedbelow.

1. Regularly Scheduled MedicareAssessments

MDS assessments must be performedin accordance with a predeterminedschedule based upon the start of aMedicare Part A covered stay. Theassessments are due on days 5, 14, 30,60, and 90 of the SNF Part A coveredstay.

2. Readmission/Return Assessments(MDS Item A8b=5)

This MDS reason for assessment isused when a beneficiary who isreceiving Part A SNF care in a swing-bed is hospitalized and then returns tothe swing-bed. The assessment referencedate of the Readmission/ReturnAssessment must be set within 5 daysof the readmission, as with a regularMedicare 5-day assessment. Like the 5-day assessment, there are 3 grace daysavailable.

3. Other Medicare-RequiredAssessments (OMRA)

Other Medicare-RequiredAssessments (OMRAs) must beperformed when a beneficiary in acovered Part A stay stops receivingtherapy, but continues to receive otherskilled services, thus remaining eligiblefor Part A services. This assessmentmust be performed between 8 and 10days after the cessation of allrehabilitation therapy services. It maynot be used to indicate changes in theamount or frequency of service or toshow reductions in the number oftherapy disciplines provided. Forexample, an OMRA is not required toshow that a beneficiary’s speech-language therapy has been discontinuedwhen the beneficiary is still receivingphysical therapy. This assessment is notrequired if the beneficiary’s Part A stayis discontinued when the therapy isstopped.

Since swing-bed facilities do notperform significant change or significantcorrection assessments, we have nomethod of recognizing changes in thebeneficiary’s clinical status that occuroutside the regular SNF PPS assessmentschedule. For this reason, we areproposing to modify the MDS 2.0 byadding a new reason for an OMRAassessment specific to swing-bedfacilities. Swing-bed providers wouldthen use this additional reason forassessment code when preparing off-cycle assessments reflecting changes inpatient status that change the RUG-IIIgroup and payment rate.

H. Required Schedule for Completingthe MDS

Swing-bed providers would followthe same MDS completion schedule forMedicare PPS assessments as otherproviders reimbursed under the SNFPPS. When performing an MDSassessment, the registered nursecoordinating the assessment would firstestablish the period of time that wouldbe used to observe and assess thebeneficiary. The last day of theobservation period is defined as theAssessment Reference Date (ARD). TheARD is the date used to determine thetimeliness of the Medicare-requiredMDS assessments. The assessmentschedule is shown in Table 12.

The Medicare Assessment Windowrefers to the days on which the MDSARD may be set in order for theassessment to be considered timely. Forexample, the ARD for the 5-dayassessment should be set between days1 and 5 of the beneficiary’s admissionto the swing-bed. Since we realize thatthere will be exceptional circumstancesin which additional time will beneeded, we have provided for gracedays. MDS assessments with ARDs on agrace day would also be consideredtimely. The timeliness of the MDSassessments may be monitored toidentify providers that routinelyperform assessments during the graceperiod.

In addition, Medicare PPSassessments are required to becompleted within 14 days of the ARD.An MDS is considered completed on thedate the Assessment Coordinatorindicates on the MDS in Section R(2)(b).Swing-bed providers that fail to performassessments or that perform lateassessments (ARD outside of thespecified assessment window) are paidat the default rate. This default rate isequal to the rate paid for the lowestacuity level in the RUG-III system, PA1.



TABLE 12.—ASSESSMENT SCHEDULE

Type of assessmentAssessment

windowdays

Grace days Paymentperiod days

5 day ........................................................................................................................................................ 1–5 6–8 1414 day ...................................................................................................................................................... 11–14 15–19 1430 day ...................................................................................................................................................... 21–29 30–34 3060 day ...................................................................................................................................................... 50–59 60–64 3090 day ...................................................................................................................................................... 80–89 90–94 10

Each assessment would then be usedto calculate a RUG–III group forpayment. As shown in Table 12, theRUG–III group is used to bill Medicarefor Medicare-covered days of SNF care.The days shown in the payment periodcolumn are the maximum number ofcovered days that can be billed usingthe 5, 14, 30, 60, and 90 dayassessments. Swing-bed care, like carein SNFs, is covered by Medicare whenthe beneficiary meets the Medicare levelof care and medical necessity criteria.

I. RUG–III ‘‘Grouper’’ Methodology andSoftware

RUG–III is a patient classificationsystem that classifies beneficiariesreceiving SNF care based on the amountof nursing and therapy resources neededto provide that level of care. RUG–IIIestablishes a seven level hierarchybased on resource use. The seven levelsare rehabilitative services, extensivecare, special care, clinically complex,cognitive impairment, behavior, andreduced physical function. Theclassification system is then subdividedinto 44 groups using activities of dailyliving (ADL) deficits, depression, andthe provision of restorative nursingservices as classification criteria. Alldata necessary to classify a patient intoone of the RUG–III categories iscontained on the MDS 2.0.

Swing-bed bills would be paid in thesame manner as for all other providerssubject to the SNF PPS. Swing-bedfacilities would encode and transmittheir MDS data to the appropriate Stateagency. The RUG–III group on the MDSwould be validated by the State uponacceptance of the facility’s MDS datafile. The provider would bill Medicareusing the validated RUG–III code.Detailed information on the RUG–IIIsystem can be found in the July 30, 1999SNF PPS final rule published in theFederal Register (64 FR 41684), and onHCFA’s PPS web site at www.hcfa.gov/medicare/snfpps.htm.

Detailed information on the RUG–IIIsoftware can be found at www.hcfa.gov/medicaid/mds20/default.htm. Thesesoftware groupers are available frommany software vendors, however, we

have developed the standard softwaregrouper product, RAVEN, which isavailable to all providers at no cost. Wealso provide ongoing support for theRAVEN software, and have a Help Deskto assist providers with datatransmission and other technicalproblems. The RAVEN software may bedownloaded by accessing HCFA’s website at www.hcfa.gov/medicaid/mds20/raven.htm.

J. Applicability of Consolidated Billingto SNF Services Furnished in Swing-BedFacilities

As enacted by section 4432(b) of BBA1997, the SNF consolidated billingrequirement (which places the Medicarebilling responsibility for almost theentire range of Medicare-coveredservices with the SNF) is based onservices that are furnished to SNFresidents. However, a swing-bedagreement allows for the provision ofSNF services to inpatients of certainsmall, rural hospitals. These swing-bedservices are not subject to the SNFconsolidated billing requirement atsection 1862(a)(18) of the Act, since thatprovision applies to services that arefurnished to residents of SNFs. Rather,these swing-bed services are subject tothe hospital bundling requirement atsection 1862(a)(14) of the Act, whichapplies to services that are furnished toinpatients of hospitals.

The hospital bundling requirement isa longstanding provision that hasapplied uniformly to all hospitals(including those with swing-bedagreements) and does not represent anew requirement or a change in existingprocedures for these facilities. Thehospital bundling provision isconceptually similar to the SNFconsolidated billing requirement (sinceit places with the hospital the Medicarebilling responsibility for virtually allservices that the patient receives), andactually served as the model for the SNFconsolidated billing legislation. LikeSNF consolidated billing, hospitalbundling specifically excludes theservices of several types of practitioners(services furnished by physicians,physician assistants, nurse practitioners,

clinical nurse specialists, certifiednurse-midwives, clinical psychologists,and certified registered nurseanesthetists). However, unlike SNFconsolidated billing, the hospitalbundling provision does not provide forthe additional exclusion of certain othertypes of services, such as dialysis orerythropoietin (EPO).

When the SNF PPS was implementedin July 1998, we received severalquestions concerning the relationshipbetween SNF consolidated billing andMedicare’s preadmission paymentwindow provision, which requires thatcertain services furnished during theperiod immediately preceding aninpatient hospital admission beincluded in the payment for the hospitaladmission. The most common questionis related to situations in which a SNFresident in a covered Part A SNF stayreceives outpatient services from ahospital, and is subsequently admittedto that same hospital as an inpatientwithin three days. Both hospital andSNF providers were unsure whether thehospital outpatient services should beincluded on the hospital inpatient billor were included in the SNF PPSpayment. Since this issue is relevant toswing-bed patients who may require areadmission to an acute care hospital(either within the same facility or toanother hospital), we are reiterating ourprevious clarification on this point.

Section 1886(a)(4) of the Act includesa preadmission payment windowprovision for hospitals. Under thisprovision, certain Part B servicesfurnished by a hospital (or by an entitywholly owned or operated by thehospital) within three days before aninpatient admission to that hospital areincluded in the Medicare Part Apayment for the hospital admission.However, we clarified the application ofthe payment window provisions in afinal regulation published in theFederal Register on February 11, 1998(63 FR 6865–66), to explain that thisprovision does not apply to Part Aservices furnished during thepreadmission period by home healthagencies, SNFs, and hospices. Thepreadmission payment window applies



only to services that are ‘‘otherwisepayable under Medicare Part B.’’Therefore, those preadmission servicesthat are covered under the Part A SNFbenefit would not be within the scopeof the preadmission payment windowprovision.

However, services furnished on theday that a SNF resident is admitted toa hospital as an inpatient are notincluded in the SNF PPS payment rate.Thus, the outpatient hospital servicesfurnished on that day would be subjectto the preadmission payment windowprovision. In addition, servicesexcluded from the SNF PPS underconsolidated billing are considered PartB services and, when provided withinthree days of admission as a hospitalinpatient, are subject to thepreadmission payment window. Amongthese SNF PPS-excluded services arecertain exceptionally intensive servicesfurnished in the hospital setting: cardiaccatheterization, computerized axialtomography (CT) scans, magneticresonance imaging (MRIs), ambulatorysurgery involving the use of anoperating room, emergency services,radiation therapy, angiography, andcertain lymphatic and venousprocedures.

For a complete list of services that arereimbursed separately from the SNFPPS rate, please refer to ProgramMemorandums A–98–37 (November1998, reissued as A–00–01, January2000) and AB–00–18 (March 2000).

K. Costs Associated With Automatingthe MDS: Preliminary Estimates

In accordance with section 1888(e)(7)of the Act, we propose to apply the SNFPPS to swing-bed providers (other thanCAHs) effective with cost reportingperiods beginning on or after October 1,2001, consistent with the statutorymandate to implement this provision bythe end of the SNF PPS transitionperiod described in section 1888(e)(2)(E)of the Act. Reimbursement under theSNF PPS is contingent upon theperiodic completion of an MDS

assessment, which is used to assigneach beneficiary to an acuity level.Payment is then based on that acuitylevel. Therefore, all swing-bed providersmust automate the MDS data collectionand transmission process and becapable of transmitting MDS data nolater than the effective date of theconversion to PPS. We anticipate thatswing-bed providers will incur someincremental costs associated withautomating and transmitting the MDS.Most start up costs associated withautomating the MDS will be related tohardware, software, and staff training.These costs will vary with the size ofeach swing-bed facility, the facility’scurrent level of computer technology,and the familiarity of staff with the MDSassessment instrument.

At the current time, a number ofswing-bed hospitals also operatedistinct part SNFs, and have systems inplace to prepare, store, and transmitMDS assessments. We estimate thatapproximately 30 percent of the nation’s1,240 Medicare swing-bed providerspresently have the hardware andsoftware capability for automated MDSdata collection and transmission. Otherfacilities may be using computers forother applications and may need toupgrade their systems to provide accessto clinical and/or data entry staff withinthe swing-bed unit. For swing-bedhospitals that do not currently operatedistinct part SNFs, we expect that asignificant percentage will have eithervery limited capacity or no computersystem at all.

Based on our experience with SNFs,we have developed this preliminaryestimate of the costs a swing-bedprovider can expect to incur. Costs areseparated into two categories, start-upand maintenance.

• Hardware: We estimate totalhardware costs associated withautomating the MDS to beapproximately $2,000 to $2,500 for atypical swing-bed provider. Thisamount includes the cost of a computer,communications components capable of

running MDS software and transmittingMDS assessments, and a laser printer.This estimate is based on the mostrecent cost data available for a systemthat meets the specifications required bythe State system. As noted earlier in thisproposed rule, we expect that manyswing-bed hospitals already have somecomputer capability and will not needto buy an entirely new system. Based oninformation currently available, we haveno way to quantify the number ofproviders requiring upgrades to theirexisting computer systems in order tooperate the MDS software. However, thecost of upgrading existing systemsshould be substantially less than thehardware cost estimates provided here.It is also possible that some providersmay elect more sophisticated andexpensive multi-user systems. However,since these systems are not generallyappropriate for small facilities, are notrequired for SNF PPS paymentpurposes, we have considered this typeof multi-user system to be an optionalexpense, and did not include it in thecost estimates. For this analysis, weassumed that all providers wouldpurchase new hardware, and thatassumption may overstate the costestimates.

This cost estimate is based on acomputer system suitable for a smallbusiness, and assumes that the facilitywill add applications and data files overtime to support ongoing operations. Weanticipate that many swing-bedhospitals will choose to purchase thistype of system even though it willinitially provide excess capacity, andbelieve that the selection is appropriate.Facilities may, of course, choose a morebasic configuration at lower cost. Acomparison between a small businessindustry standard configuration and theminimum system capable of running thenecessary MDS software is shown inTable 13.A. Ongoing hardwaremaintenance costs for nursing homesare expected to average about $100annually. Service contracts are alsoavailable for new PC purchases.

TABLE 13.A.—PPS COMPUTER REQUIREMENTS

Component Small business standard Basic MDS processing

Processor ........................................................... Pentium III 933/133MH .................................... Pentium III.Memory .............................................................. 128MB sdram ................................................... 32 MB.Keyboard ........................................................... Standard with PC ............................................. Standard with PC.Monitor ............................................................... 17″ color monitor .............................................. 14″ color monitor.Hard Drive ......................................................... 20GB ................................................................ 100MB.Floppy Drive ...................................................... 1.44MB 3.5″ ...................................................... 1.44MB 3.5″.Operating System .............................................. Win2000 ........................................................... Windows 98, NT.Data Backup ...................................................... Iomega 250MB Zip drive .................................. Optional.Mouse ................................................................ Standard with PC ............................................. Standard with PC.Modem ............................................................... v.90 56K voice/data/fax .................................... 28.8k voice/data/fax.Media Options ................................................... 20/48X CD–Rom .............................................. Optional.Communications software ................................. Netscape or comparable device ...................... Netscape or comparable device.



TABLE 13.A.—PPS COMPUTER REQUIREMENTS—Continued

Component Small business standard Basic MDS processing

Applications Software ........................................ Microsoft Small Business Norton AntiVirus ..... Optional Anti-virus software, recommended.Printer ................................................................ Laser Printer ..................................................... Laser Printer.

• Software: Swing-bed providersdesiring only to meet the MDS datasubmission requirements may useRAVEN, the MDS software developedby HCFA, which is available free ofcharge. RAVEN allows facilities toperform the basic encoding andformatting functions, and allows usersto store and retrieve MDS documents.We already provide ongoing support forthe RAVEN software, and the RAVENHelp Desk will be available to swing-bed providers to resolve software ortransmission problems. We expect thatRAVEN will meet the needs of manysmall swing-bed providers.

Some facilities will choose moresophisticated software programs thatcan be used to meet other clinical oroperational needs, such as careplanning, order entry, quality assurance,or billing. There are currently over 100vendors marketing MDS softwareproducts, and the cost of MDS softwarepackages varies widely. Depending onthe number of work stations, the levelof customer support, and the scope ofreporting subsystems, an MDSprocessing system can cost anywherefrom approximately $500 to $5,000 ormore per year. Generally, the higher-priced software is designed for largeSNFs or multi-facility chains and wouldbe inappropriate for a small swing-bedfacility. We would expect that swing-bed facilities that choose not to useRAVEN could purchase proprietaryMDS software and support services at acost ranging from $500 to $1,200 peryear. While we have considered thepossibility, absent a survey of swing-bedproviders, we have no way to quantifyhow many will elect to purchase moreelaborate proprietary MDS processingsystems. The extra functionalityassociated with these systems is notrequired for payment under the SNFPPS, and should be considered optionalcosts. However, we have included a costrange in these estimates since we do notwant to discourage providers from usingMDS systems for other functions, suchas quality assurance.

All swing-bed providers will need acommon data communications softwarepackage to transmit MDS assessments tothe State. This communications packagemust meet our specifications related totransmission of MDS data, whichrepresent current technology. The costof the communications software, the

anti-virus software and the mostcommon small business suite of wordprocessing and spread sheet computerapplications is included in the costestimate for a small business standardconfiguration PC system.

• Supplies: Supplies necessary forcollection and transmission of dataincluding diskettes, computer paper,and toner, will vary according to thesize of the facility in terms of residentsserved and assessments required. Forthe average facility, supply costs shouldaverage approximately $200 per year.

• Maintenance: There are costsassociated with normal maintenance ofcomputer equipment, such as thereplacement of disk drives or memorychips. Typically, such maintenance isprovided via extended warrantyagreements with the original equipmentmanufacturer, system reseller, or ageneral computer support firm. Thesemaintenance costs are estimated toaverage no more than $100 per year.

L. Provider TrainingWe recognize our responsibility to

provide initial training, as well asongoing technical support. We arecurrently evaluating training optionsand solicit comments on trainingmethods, vehicles, and timeframes.

VII. Provisions of the Proposed RuleThe provisions of this proposed rule

are as follows:• In § 410.150, we propose to revise

paragraph (b)(14) to reflect that Part Bmakes payment to the SNF for itsresident’s services only in thosesituations where the SNF itselffurnishes the services, either directly orunder an arrangement with an outsidesource.

• In § 411.15, we propose to reviseparagraph (p)(1) to indicate that exceptfor physical, occupational, and speech-language therapy, consolidated billingapplies only to those services that a SNFresident receives during the course of acovered Part A stay. We would alsomake conforming revisions in§§ 489.20(s) and 489.21(h), in thecontext of the requirements of the SNFprovider agreement. We propose torevise paragraph (p)(2) to indicate that,for Part B services furnished to a SNFresident, the requirement to enter theSNF’s Medicare provider number on thePart B claim (which previously applied

only to claims for physician services)would apply to all types of Part Bclaims. We would also make conformingrevisions in the requirements regardingclaims for payment, at §§ 424.32(a)(2)and (a)(5). We would revise the wordingof the existing requirement in§ 424.32(a)(5) for a SNF to includeappropriate HCPCS coding and itsMedicare provider number on theclaims that it files for its residents’services, by adding that theserequirements also apply to these claimswhen they are filed by an outside entity.In addition, we would revise§ 411.15(p)(3) to exclude from thedefinition of a SNF resident, forconsolidated billing purposes, thoseindividuals who reside in thenoncertified portion of an institutionthat also contains a participatingdistinct part SNF.

• In accordance with section1888(e)(2)(E) of the Act, we propose torevise § 413.114 to reimburse swing-bedservices of rural hospitals (other thanCAHs, which would be paid on areasonable cost basis) under the SNFPPS described in regulations at subpartJ of that part. This conversion to theSNF PPS would be effective for servicesfurnished during cost reporting periodsbeginning on or after October 1, 2001.We also propose to revise paragraph(d)(1) of this section to reflect the BBRA1999 modifications to the specialrequirements for swing-bed facilitieswith more than 49 but fewer than 100beds (as discussed in section VI.C of thispreamble), and to make a conformingrevision in § 424.20(a)(2).

VIII. Collection of InformationRequirements

Under the Paperwork Reduction Actof 1995 (PRA), agencies are required toprovide a 60-day notice in the FederalRegister and solicit public commentwhen a collection of informationrequirement is submitted to the Office ofManagement and Budget (OMB) forreview and approval. To fairly evaluatewhether an information collectionshould be approved by OMB, section3506(c)(2)(A) of the PRA requires thatwe solicit comments on the followingissues:

• Whether the information collectionis necessary and useful to carry out theproper functions of the agency;



• The accuracy of the agency’sestimate of the information collectionburden;

• The quality, utility, and clarity ofthe information to be collected; and

• Recommendations to minimize theinformation collection burden on theaffected public, including automatedcollection techniques.

Therefore, we are soliciting publiccomment on each of these issues for theinformation collection requirementsdiscussed below.

§ 413.114(a)(2)—Implementing therequirement in section 1888(e)(7) of theAct for the SNF PPS to encompassswing-bed services furnished in ruralhospitals will require these providers tocomplete MDS assessments, inaccordance with the scheduleprescribed in regulations at 42 CFR413.343(b). Accordingly, we areincluding in this proposed rule thefollowing discussion of the anticipatedburden for rural hospitals as a result ofimplementing this requirement.

On December 23, 1997, we issued inthe Federal Register a final regulationrequiring Medicare-certified SNFs andMedicaid-certified nursing facilities(NFs) to encode and transmit MDS datato HCFA in electronic format (42 FR67174). In that rule, we provided costestimates for training staff andconducting ongoing functions related tothe preparation, data entry andtransmission of MDS data. Theestimates presented here are based onthe analysis presented in the MDSautomation rule, but are updated toreflect current wage data and uniqueaspects of swing-bed providers. We alsoused 1999 claims data to calculate thenumber of swing-bed stays and theaverage length of stay. These data wereused to estimate ongoing MDS-relatedcosts.

Using the best available 1999 claimsdata, we identified 97,576 swing bedstays. There are currently 1,250 swing-bed facilities. The average annualnumber of admissions is 78 per swing-bed hospital. Using the same 1999claims data, the average length of stayis 8.79 days. Accordingly, on average, atypical swing-bed facility would need tocomplete only one MDS per admission,since the PPS 5-day assessment governspayment for the first 14 days of the stay.

• Data Entry: Based upon ourexperience with SNFs, we estimate thatswing-bed facilities will need to train atleast one staff person to handle the dataentry and MDS processing system. Stateagencies currently train SNF staff onthese functions, and the training isgenerally completed in a single half-daysession. Additional training materialsand updates to program requirements

are generally posted on the MDS websites, and are available to staff at nocost. By distributing informationelectronically, and providing HelpDesks for software and transmissionproblems, we minimize the need forstaff travel, and reduce the ongoingcosts associated with encoding andtransmitting MDS data.

Facilities may choose among a varietyof approaches to encode the MDS datain electronic format. In many SNFs, thenurses conducting the assessmentsinput their responses directly into thecomputer, and the data entry time isincorporated into the MDS preparationtime. In others, a data entry operator isused to input the MDS data andmaintain the MDS processing system.For SNFs, the data entry functionaverages 15 minutes per assessment. Wealso expect that staff will requireapproximately 2 hours per month toperform system-related functions suchas processing corrections, retrievingassessment information, printing copies,verifying the accuracy of the dataentered into the system, and reviewingprogram updates and training materials.

The hourly rate for data entry wasestimated at $15, and reflects the salarydifferentials between the two types ofstaff typically performing this function:RNs and data operators.

• Electronic Transmission: Swing-bedstaff will also need training on datatransmission procedures. Again, stateagencies have already developedtraining programs in this area, and thistraining will be available to swing-bedpersonnel. Generally, a facility wouldsend one person to a half-day trainingprogram. This individual would beresponsible for handling datatransmission functions, and would beexpected to train other facility staff ona time-available basis. We will make theMDS transmission system available toswing-bed providers prior to theeffective date of the transition to theSNF PPS, and allow staff to practicetransmission procedures. We wouldexpect that each swing-bed providerwould have successfully transmitted atleast one MDS data file prior to theupdated SNF PPS effective date. Oncethe designated individual has beentrained, we estimate that the MDStransmission will take approximatelyone hour per month.

The hourly rate of data transmissionwas estimated at $15, and reflects thesalary differentials between the twotypes of staff typically performing thisfunction: RNs and data operators.

• MDS Coding: Training time willvary depending on the familiarity ofswing-bed staff with MDS codingprocedures and the presence of a

hospital-based SNF that is alreadysubject to the SNF PPS requirements.Many swing-bed hospital employeesmay have prior experience in a SNFwhere they were trained in MDS codingprocedures. In addition, in 1999,approximately 25 percent of swing-bedhospitals also had hospital-based SNFfacilities, and have a pool of trainedstaff who can assist swing-bedemployees with MDS codingprocedures. Regardless of the amount ofinhouse support available, we believe itis advisable for each swing-bed hospitalto designate an RN to assume leadresponsibility, and to ensure that thisRN is fully trained. We estimate that theinitial training in MDS clinical codingand SNF PPS assessment schedulingwill require two days.

Based upon the experience SNFs havehad in completing the MDS, we estimatethat it generally takes 45 minutes tocomplete a comprehensive assessment.We considered reducing this estimatefor swing-bed providers for two reasons.First, the requirements forcomprehensive assessments which aremandated under the Omnibus BudgetReconciliation Act of 1987, Pub.L. 100–203 (OBRA 1987) are somewhat higherthan those applicable to the SNF PPSassessments. Second, SNF staffgenerally have limited knowledgeconcerning the care the patient receivedprior to the SNF admission, and limitedaccess to the records from the priorhospital stay. As a result, the RN in theSNF conducting a 5-day PPS assessmenthas to build a completely newknowledge base about the patient’scondition and care needs. By contrast,in a swing-bed hospital, the staff caringfor the patient have the advantages ofobserving the patient during the acuteportion of the stay, and should havemore information already availablewhen completing the SNF PPS 5-dayassessment. However, rather thanreducing the time estimate, we are usingthe higher number to reflect theexpected learning curve over the firstyear as staff become more familiar withand proficient in completing the MDS.

As stated above, swing-bed providersaveraged 78 stays per year with anaverage swing-bed length of stay ofslightly under 9 days. Therefore, swing-bed providers would generally completejust one SNF PPS assessment for mostpatients; i.e., the 5-day assessment thatgoverns payment for the first 14 days ofa stay.

Although our projections are based onthe most recent available data, andindicate that swing-bed providers willgenerally complete only one MDS perbeneficiary during the course of aswing-bed stay, we are aware that this



utilization pattern could change. Wenote that the restrictions on beneficiarylength of stay and the caps on thepercentage of bed days that could beused for swing-bed service wereeliminated by section 408 of BBRA1999, effective with cost reportingperiods beginning on and after October1, 2002. With this added flexibility,swing-bed providers may decide toadjust their admission practices, andmay serve more patients requiringlonger lengths of stay. If this changeoccurs, swing-bed staff may be requiredto perform additional MDS assessments.Therefore, we plan to monitor swing-bed utilization patterns to identify anychanges in provider practices andevaluate the impact of these changes onswing-bed performance under the SNFPPS. However, for the current analysis,we have used the best availablehistorical data to project futureexperience.

To calculate the costs of preparing theMDS, we used 1998 Bureau of Labor

Statistics nursing wage data includingfringe benefits, updated to FY 2002levels using the SNF market basketfactor. The average hourly rate of $24.70is used in the calculations shown inTable 13.B. The Aggregate Cost-BasicOption column estimates are based onOctober, 2000 data showing 1,250certified swing-bed providers. Theaggregate calculations assume that allproviders chose either the basic or smallbusiness option. Absent a survey of allproviders, we have no way to quantifythe number of providers requiringupgrades to existing computer systemsin order to operate the MDS software.We have assumed purchase of a newsystem for all providers, which mayresult in an overstatement of actualanticipated costs. The Basic Option-Cost/Facility Hardware estimateincludes a laser printer, operatingsoftware, basic applications software,including Word 2000 and Excel 2000,and a one year service agreement andanti-virus software. The Small Business

Option-Cost/Facility Hardware estimateincludes a laser printer, operatingsoftware, Microsoft Office Suiteapplications software, anti-virussoftware, and a one year serviceagreement. The CommunicationsSoftware estimate reflects the cost ofNetscape or other communicationssoftware. It is assumed that swing-bedproviders will use the free RAVENsoftware for MDS processing. Thissoftware was developed and tested byHCFA, and has been widely used byboth hospital-based and freestandingSNFs during the past three years. Wecannot quantify the number of providerswho will choose to purchase proprietarysystems, and therefore have included acost range. We believe that the freeRAVEN software, along with theassociated Help Desk Services will meetthe needs of most providers. The use ofproprietary systems should beconsidered an optional cost.

TABLE 13.B.—SWING-BED RURAL HOSPITAL COST OF COMPLETING MDS

Category Basic option-cost/facility

Small business option—cost/facility

Aggregate cost—basic option

Aggregate cost—small business option

Hardware ........................................................... $1,400.00 $2,100.00 $1,750,000.00 $2,625,000.00Comm. Software ............................................... 100.00 100.00 125,000.00 125,000.00MDS Software ................................................... 0–1,200.00 0–1,200.00 0–1,500,000.00 0–1,500,000.00Staff Training—MDS Coding ............................. 494.00 494.00 617,500.00 617,500.00Staff Training—Entry and Transmission ........... 240.00 240.00 300,000.00 300,000.00Start Up Costs ................................................... 2,234.00 2,934.00 2,792,500.00 3,667,500.00MDS Preparation ............................................... 1,445.00 1,445.00 216,750.00 216,750.00MDS Entry ......................................................... 292.50 292.50 365,625.00 365,625.00MDS Transmission ............................................ 180.00 180.00 225,000.00 225,000.00Supplies ............................................................. 200.00 200.00 250,000.00 250,000.00Maintenance ...................................................... 100.00 100.00 125,000.00 125,000.00Operating Cost .................................................. 2,217.50 2,217.50 1,182,375.00 1,182,375.00Estimated First Year Costs ............................... 4,451.50–5,651.50 5,151.50–6,351.50 3,974,875.00–5,474,875.00 4,849,875.00–6,349,875.00

§ 424.32(a)(5)—We propose to revisesection 424.32(a)(5) to reflect the newstatutory requirement that all Part Bclaims for services furnished to SNFresidents must include the SNF’sMedicare provider number. Because theburden associated with this additionalrequirement is incidental to thecompletion of a claim, we are unable toestimate the burden associated with thisnew requirement, and explicitly solicitcomment. As a result of this newrequirement, we will be revising theOMB clearance package for the HCFA–1500 (Common Claim Form), OMBnumber 0938–0008, which is currentlybeing reviewed by OMB for re-approval.

We have submitted a copy of thisproposed rule to OMB for its review ofthe information collection requirementsin §§ 413.411(a)(2) and 424.32(a)(5).

These requirements are not effectiveuntil they have been approved by OMB.

If you have any comments on any ofthese information collection and recordkeeping requirements, please mail oneoriginal and three copies within 60 daysof the publication date directly to thefollowing:

Health Care Financing Administration,Office of Information Services,Information Technology InvestmentManagement Group, Division ofHCFA Enterprise Standards, RoomN2–14–26, 7500 Security Boulevard,Baltimore, MD 21244–1850, Attn:John Burke, HCFA–1163–P.

And: Office of Information andRegulatory Affairs, Room 10235, NewExecutive Office Building,Washington, DC 20503, Attn: AllisonHerron Eydt, HCFA Desk Officer.

IX. Regulatory Impact Analysis

We have examined the impact of thisrule as required by Executive Order (EO)12866, the Unfunded Mandate ReformAct (UMRA, Public Law 104–4), theRegulatory Flexibility Act (RFA, PublicLaw 96–354), and the FederalismExecutive Order (EO) 13132.

Executive Order 12866 directsagencies to assess costs and benefits ofavailable regulatory alternatives and,when regulation is necessary, to selectregulatory approaches that maximizenet benefits (including potentialeconomic, environmental, public healthand safety effects, distributive impacts,and equity). A regulatory impactanalysis (RIA) must be prepared formajor rules with economicallysignificant effects ($100 million or moreannually). This proposed rule is a major



rule as defined in Title 5, United StatesCode, section 804(2), because weestimate its impact will be to increasethe payments to SNFs by approximately$300 million in FY 2002. The update setforth in this proposed rule applies topayments in FY 2002. Accordingly, theanalysis that follows describes theimpact of this one year only. Inaccordance with the requirements of theAct, we will publish a notice for eachsubsequent FY that will provide for anupdate to the payment rates and includean associated impact analysis.

The UMRA also requires (in section202) that agencies prepare anassessment of anticipated costs andbenefits before developing any rule thatmay result in an expenditure in any yearby State, local, or tribal governments, inthe aggregate, or by the private sector, of$100 million or more. This rule willhave no consequential effect on State,local, or tribal governments. We believethe private sector cost of this rule fallsbelow these thresholds as well.

Executive Order 13132 (effectiveNovember 2, 1999) establishes certainrequirements that an agency must meetwhen it promulgates regulations thatimpose substantial direct compliancecosts on State and local governments,preempt State law, or otherwise haveFederalism implications. As statedabove, this rule will have noconsequential effect on State and localgovernments.

The RFA requires agencies to analyzeoptions for regulatory relief of smallentities. For purposes of the RFA, smallentities include small businesses,nonprofit organizations, andgovernmental agencies. Most SNFs andmost other providers and suppliers aresmall entities, either by virtue of theirnonprofit status or by having revenuesof $10 million or less annually. Forpurposes of the RFA, all States andtribal governments are not considered tobe small entities, nor are intermediariesor carriers. Individuals and States arenot included in the definition of a smallentity.

The policies contained in thisproposed rule would update the SNFPPS rates by increasing the paymentrates published in the July 31, 2000notice (65 FR 46770). While we do notbelieve that this will have a significanteffect upon small entities overall, someindividual providers may experiencesignificant increases in payments, whileothers (those that are concluding theirfinal year under the transition fromfacility-specific to full Federal rates)may experience significant decreases, asdiscussed later in this section.

In addition, section 1102(b) of the Actrequires us to prepare an RIA if a rule

may have a significant impact on theoperations of a substantial number ofsmall rural hospitals. This analysis mustconform to the provisions of section 604of the RFA. For purposes of section1102(b) of the Act, we define a smallrural hospital as a hospital that islocated outside of a MetropolitanStatistical Area and has fewer than 50beds. We have examined the impact onthe 1,250 swing-bed facilities thatwould start receiving payment underthe SNF PPS effective with costreporting periods beginning on or afterOctober 1, 2001, and find that thepayments to these facilities will increaseoverall. Some swing-bed facilities mayreceive significant increases in Medicarerelated payments, as described later inthis section. Accordingly, the followinganalysis includes a specific examinationof the projected impact of theseprovisions on small rural hospitals.

A. BackgroundSection 1888(e) of the Act establishes

the SNF PPS for the payment ofMedicare SNF services for periodsbeginning on or after July 1, 1998. Thissection specifies that the base year costdata to be used for computing the RUG–III payment rates must be from FY 1995(that is, October 1, 1994, throughSeptember 30, 1995.) In accordancewith the statute, we also incorporated anumber of elements into the SNF PPS,such as case-mix classificationmethodology, the MDS assessmentschedule, a market basket index, a wageindex, and the urban and ruraldistinction used in the development oradjustment of the Federal rates.

This proposed rule sets forth updatesof the SNF PPS rates contained in theJuly 31, 2000 final rule (65 FR 46770).Table 14 presents the projected effectsof the policy changes in the SNF PPSfrom FY 2001 to FY 2002, as well asstatutory changes effective for FY 2001and FY 2002. In so doing, we estimatethe effects of each policy change byestimating payments while holding allother payment variables constant. Weuse the best data available, but we donot attempt to predict behavioralresponses to our policy changes, and wedo not make adjustments for futurechanges in such variables as days orcase-mix.

This analysis incorporates the latestestimates of growth in service use andpayments under the Medicare SNFbenefit based on the latest availableMedicare claims data and MDS 2.0assessment data from 1999. We plan toupdate this data in the final rule. Wenote that certain events may combine tolimit the scope or accuracy of ourimpact analysis, because such an

analysis is future-oriented and, thus,very susceptible to forecasting errorsdue to other changes in the forecastedimpact time period. Some examples ofsuch possible events are newlylegislated general Medicare programfunding changes by the Congress, orchanges specifically related to SNFs. Inaddition, changes to the Medicareprogram may continue to be made as aresult of BBA 1997, BBRA 1999, BIPA2000 or new statutory provisions.Although these changes may not bespecific to SNF PPS, the nature of theMedicare program is such that thechanges may interact, and thecomplexity of the interaction of thesechanges could make it difficult topredict accurately the full scope of theimpact upon SNFs.

B. Impact of the Proposed Rule

The purpose of this proposed rule isnot to initiate significant policy changeswith regard to the SNF PPS; rather, it isto provide an update to the rates for FY2002. We believe that the revisions andclarifications mentioned elsewhere inthe preamble (for example, the update tothe wage index used for adjusting theFederal rates) will have, at most, only anegligible overall effect upon theregulatory impact estimate specified inthe rule. As such, these revisions willnot represent an additional burden tothe industry.

The aggregate increase in paymentsassociated with this proposed rule isestimated to be $300 million. The effectof the 20 percent add-on from BBRA1999 is $1.0 billion; however, since thisadd-on became effective in FY 2001, ithas already been reflected in the impactanalysis for last year’s final rule (65 FR46770) and, thus, does not represent anew, additional impact for the FY 2002payment rates. There are three areas ofchange that produce this increase forfacilities:

1. The effect of facilities being paidthe full Federal rate.

2. The implementation of provisionsin BIPA 2000, such as the 16.6 percentincrease in the nursing component ofeach RUG and the elimination of theone percent reduction in the SNFmarket basket for FY 2001.

3. The total change in payments fromFY 2001 levels to FY 2002 levels. Thisincludes all of the previously notedchanges in addition to the effect of theupdate to the rates.

As seen in Table 14, some of theseareas are expected to result in increasedaggregate payments and others areexpected to tend to lower them. Thebreakdown of the various categories ofdata in the table is as follows:



The first row of figures in the tabledescribes the estimated effects of thevarious policies on all facilities. Thenext six rows show the effects onfacilities split by hospital-based,freestanding, urban and rural categories.The remainder of the table shows theeffects on urban versus rural status bycensus region.

The second column in the table showsthe number of facilities in the impactdatabase. The third column shows theeffect of the expiration of the transitionand movement to the full Federal ratesfor all SNFs. This change has an overalleffect of lowering payments by anestimated 8.5 percent, affecting hospital-based facilities more than freestandingfacilities. The main reason for such alarge decrease is the BBRA 1999provision that allowed facilities tochoose the full Federal rate. When giventhe option to do so, an estimated 43percent of the facilities elected to go tothe full Federal rate. This meant that the

only facilities left to transition to thefull Federal rate are ones for which theexpiration of the transition will cause adecrease in reimbursement. In contrast,those facilities receiving the full Federalrate will experience an 11.6 percentincrease in payments. The overall effect,therefore, reduced reimbursement, butthe effects across regions are quitevariable.

The fourth column shows theprojected effect of the 16.66 percentadd-on to the nursing portion of theFederal rate mandated by BIPA 2000. Asexpected, this results in an increase inpayments for all facilities; however, asseen in the table, the varying effect ofthe SNF PPS transition results in adistributional impact. In addition, sincethis increase only applies to the nursingportion of the payment rate, the effecton total expenditures is less than 16.66percent.

The fifth column of the table showsthe effect of the change in the add-on for

the rehabilitation RUGs. The totalimpact of this change is zero percent;however, there are distributional effectsof this change, as seen in the table.

The sixth column of the table showsthe effect of all of the changes on the FY2002 payments. This includes all of theprevious changes, including the updateto this year’s payment rates by themarket basket. Rebasing of the marketbasket index from 1992 to 1997 hadlittle impact on the overall changesdisplayed in this column. It is projectedthat payments will increase by 2.1percent in total, assuming facilities donot change their care delivery andbilling practices in response. As can beseen from this table, the combinedeffects of all the changes vary widely byspecific types of providers and bylocation. For example, freestandingfacilities experience payment increases,while the effects of the transition causedecreases in payments for hospital-based providers.

TABLE 14.—PROJECTED IMPACT OF FY 2002 UPDATE TO THE SNF PPS

Number offacilities

Transition tofederal rates

(percent)

Add-on tonursingrates

(percent)

Add-on torehab RUGs

(percent)

Total FY2002

change(percent)

Total ......................................................................................................... 9037 ¥8.5 7.9 0.0 2.1Urban ....................................................................................................... 6300 ¥9.0 8.0 0.1 1.7Rural ........................................................................................................ 2737 ¥6.7 7.5 ¥0.5 3.2Hospital based urban ............................................................................... 683 ¥14.7 8.5 ¥0.8 ¥5.1Freestanding urban .................................................................................. 5617 ¥8.1 7.9 0.3 2.8Hospital based rural ................................................................................. 533 ¥9.7 8.2 ¥2.0 ¥1.0Freestanding rural .................................................................................... 2204 ¥6.2 7.4 ¥0.3 3.9Urban by region.New England ........................................................................................... 630 ¥3.9 8.1 0.2 7.6Middle Atlantic .......................................................................................... 877 ¥2.9 8.4 ¥1.7 7.0South Atlantic ........................................................................................... 959 ¥10.5 7.7 0.8 0.5East North Central ................................................................................... 1232 ¥7.6 7.8 0.9 3.9East South Central .................................................................................. 212 ¥8.8 7.8 0.4 2.1West North Central .................................................................................. 469 ¥10.6 7.9 0.1 ¥0.2West South Central ................................................................................. 519 ¥19.5 8.1 0.1 ¥9.9Mountain .................................................................................................. 303 ¥17.3 7.5 1.5 ¥6.7Pacific ...................................................................................................... 1070 ¥13.9 8.0 0.5 ¥3.4Rural by region.New England ........................................................................................... 88 ¥0.9 7.5 ¥0.4 9.7Middle Atlantic .......................................................................................... 144 ¥4.4 7.7 ¥1.5 4.9South Atlantic ........................................................................................... 373 ¥5.3 7.5 0.1 5.4East North Central ................................................................................... 561 ¥5.1 7.4 0.0 5.4East South Central .................................................................................. 255 ¥5.1 7.9 ¥2.6 3.1West North Central .................................................................................. 581 ¥8.2 7.7 ¥1.4 0.8West South Central ................................................................................. 354 ¥14.9 7.5 0.2 ¥5.2Mountain .................................................................................................. 204 ¥11.6 7.2 ¥0.1 ¥2.1Pacific ...................................................................................................... 151 ¥7.4 7.2 0.6 3.3

In accordance with section 1888(e)(7)of the Act, we propose to pay ruralhospitals for SNF-level swing-bedservices under the SNF PPS effectivewith cost report periods beginning onand after October 1, 2001. In makingthis proposal, we have examined theanticipated impact of this paymentchange on swing-bed facilities.

We analyzed data from swing-bedclaims for calendar years 1996 through1998 to determine Medicare paymentsmade under the current swing-bedpayment system. The claims data reflectthe predetermined routine costpayments and the interim payment forancillary services. While the interimpayment rate for ancillary services is

subject to final cost settlement, itrepresents a reasonable proxy for actualswing-bed payments.

We then adjusted the historical dataon swing-bed payments to 2002 levels.For calendar years 1999 through 2001,we projected the average payment perday, using the 6.5 percent growth ratecalculated from the most recent



available data from calendar years 1997and 1998. For 2002, we used a blendedgrowth rate that reflects a projectedincrease in payment for routine servicesequal to the market basket of 2.4percent, but retains the historicalgrowth factor of 6.5 percent for ancillarypayments. In 1998, the average paymentper day was $205.41. The estimatedswing-bed payment per day for 2002under the existing method ofreimbursement is $258.41.

We then estimated the amount thatwould have been paid for the sameservices under the SNF PPS. Thisestimate reflected both adjustments forgeographic variation and case-mix. Forthe geographic adjustment, we used theaverage rural wage index for FY 2001(that is, 0.8700). For case-mix, althoughMedicare swing-bed claims do notinclude all of the data elementsnecessary to classify patients in exactlythe same way as the patients would beclassified in the RUG–III system, thereis enough information to assignMedicare swing-bed patients to RUG–IIIcategories at a general level. To generatethis classification, we used theMEDPAR case-mix analog described indetail in the SNF PPS interim final rulepublished on May 12, 1998 (63 FR26252). As a result, we were able toestimate how the national swing-bedpopulation would classify into RUG–IIIcategories. We found that 69 percent ofthe covered days would be assigned tojust two RUG–III categories (or sixgroups): medium rehabilitation andextensive services.

We also noted that 9 percent of thecovered days were assigned tocategories that are not typicallyassociated with a Medicare level of care(impaired cognition and lower groups).We have not assumed that these claimswere paid in error. Rather, we areassuming that these patients had skilledcare needs other than ones that could becaptured using the MEDPAR case-mixanalog, and we have included thesestays in our analysis.

TABLE 15.—RUG–III FREQUENCY DIS-TRIBUTION USING CALENDAR YEAR1999 CLAIMS

RUG–III cat-egory level

Number ofdays paid

Percent oftotal days

Ultra HighRehab ............ 30,618 3

Very HighRehab ............ 33,687 4

High Rehab ....... 76,596 9Medium Rehab 264,614 30Low Rehab ....... 58,016 7Extensive Serv-

ices ................ 288,131 33Special Care ..... 11,540 1

TABLE 15.—RUG–III FREQUENCY DIS-TRIBUTION USING CALENDAR YEAR1999 CLAIMS—Continued

RUG–III cat-egory level

Number ofdays paid

Percent oftotal days

Clinically Com-plex ................ 35,304 4

Impaired Cog-nition .............. 4,737 1

Other ................. 72,293 8

Totals ......... 875,536 100

Our next step was to project the SNFPPS payments for these swing-bedservices. For the purposes of thisanalysis, we used the calendar yearfrequency distribution and number ofcovered swing-bed days shown in Table15. Unique nursing case-mix weightshave already been developed for eachlevel of the MEDPAR case-mix analog.These weights were used to adjust theproposed FY 2002 rural SNF PPS ratesset forth in this proposed rule todetermine the SNF PPS rates used inthis estimate. We adjusted these ratesfor all BBRA and BIPA add-onsapplicable for FY 2002.

Based on our analysis, the FY 2002SNF PPS payment amount exceeds theprojected payments under the currentswing-bed payment system for that yearin 5 of the 10 case-mix analog categoriesthat included 79 percent of the swingbed days. In fact, for the two mostcommon RUG-III categories, mediumrehabilitation and extensive services,the projected increases are substantial:14 percent for medium rehabilitationand 16 percent for extensive services. Inaddition, records in two of thecategories where the projected SNF PPSrate is lower than the projected swing-bed payment amount under the presentsystem (impaired cognition and other)group into much higher categories whenusing the full RUG–III algorithm.

In terms of aggregate Medicareexpenditures, we estimate that thetransition to SNF PPS will increasepayments for SNF-level swing-bedservices by 9 percent, or approximately$20 million, while the aggregate costswill be approximately $20 million inbenefits and 6.32 million for completionof the MDS assessments.

Based on these estimates, we believethe financial impact on swing-bedproviders will be positive, with theanticipated 9 percent payment increaseserving to offset the estimated start-upcosts associated with MDS completionand transmission (described in sectionVI.K of this proposed rule).

Finally, in accordance with theprovisions of Executive Order 12866,

this notice was reviewed by the Officeof Management and Budget.

X. FederalismWe have reviewed this proposed rule

under the threshold criteria of ExecutiveOrder 13132, Federalism, and we havedetermined that it does not significantlyaffect the rights, roles, andresponsibilities of States.

List of Subjects

42 CFR Part 410Health facilities, Health professions,

Kidney diseases, Laboratories,Medicare, Rural areas, X-rays.

42 CFR Part 411Kidney diseases, Medicare, Reporting

and recordkeeping requirements.

42 CFR Part 413Health Facilities, Kidney diseases,

Medicare, Puerto Rico, Reporting andrecordkeeping requirements.

42 CFR Part 424Emergency medical services, Health

facilities, Health professions, Medicare.

42 CFR Part 482Grant programs-health, Hospitals,

Medicaid, Medicare, Reporting andrecordkeeping requirements.

42 CFR Part 489

Health facilities, Medicare, Reportingand recordkeeping requirements.

For the reasons set forth in thepreamble, 42 CFR chapter IV isproposed to be amended as follows:

PART 410—SUPPLEMENTARYMEDICAL INSURANCE (SMI)BENEFITS


Authority: Secs. 1102 and 1871 of theSocial Security Act (42 U.S.C. 1302 and1395hh).

* * * * *

Subpart I—Payment of SMI Benefits

2. In § 410.150, the introductory textof paragraph (b) is republished, andparagraph (b)(14) is revised to read asfollows:

§ 410.150 To whom payment is made.

* * * * *(b) Specific rules. Subject to the

conditions set forth in paragraph (a) ofthis section, Medicare Part B pays asfollows:* * * * *

(14) To an SNF for services (otherthan those described in § 411.15(p)(2) ofthis chapter) that it furnishes to a



resident (as defined in § 411.15(p)(3) ofthis chapter) of the SNF who is not ina covered Part A stay.* * * * *

PART 411—EXCLUSIONS FROMMEDICARE AND LIMITATIONS ONMEDICARE PAYMENT



Subpart A—General Exclusions andExclusion of Particular Services

4. In § 411.15, paragraph (p)(1) isrevised, and paragraph (p)(2)introductory text, paragraph (p)(2)(i),and paragraph (p)(3) introductory textare revised to read as follows:

§ 411.15 Particular services excluded fromcoverage.

* * * * *(p) Services furnished to SNF

residents. (1) Basic rule. Except asprovided in paragraph (p)(2) of thissection, any service furnished to aresident of an SNF during a covered PartA stay by an entity other than the SNF,unless the SNF has an arrangement (asdefined in § 409.3 of this chapter) withthat entity to furnish that particularservice to the SNF’s residents. Servicessubject to exclusion under thisparagraph include, but are not limitedto—

(i) Any physical, occupational, orspeech-language therapy services,regardless of whether the services arefurnished by (or under the supervisionof) a physician or other health careprofessional, and regardless of whetherthe resident who receives the services isin a covered Part A stay; and

(ii) Services furnished as an incidentto the professional services of aphysician or other health careprofessional specified in paragraph(p)(2) of this section.

(2) Exceptions. The following servicesare not excluded from coverage,provided that the claim for paymentincludes the SNF’s Medicare providernumber in accordance with§ 424.32(a)(5) of this chapter:

(i) Physicians’ services that meet thecriteria of § 415.102(a) of this chapter forpayment on a fee schedule basis.* * * * *

(3) SNF resident defined. Forpurposes of this paragraph, a beneficiarywho is admitted to a Medicare-participating SNF is considered to be aresident of the SNF. Whenever thebeneficiary leaves the facility, thebeneficiary’s status as an SNF resident

for purposes of this paragraph (alongwith the SNF’s responsibility to furnishor make arrangements for the servicesdescribed in paragraph (p)(1) of thissection) ends when one of the followingevents occurs—* * * * *

PART 413—PRINCIPLES OFREASONABLE COSTREIMBURSEMENT; PAYMENT FOREND-STAGE RENAL DISEASESERVICES; PROSPECTIVELYDETERMINED PAYMENT RATES FORSKILLED NURSING FACILITIES

5. The authority citation for part 413is amended to read as follows:

Authority: Secs. 1102, 1812(d), 1814(b),1815, 1833(a), (i), and (n), 1871, 1881, 1883,1886, and 1888 of the Social Security Act (42U.S.C. 1302, 1395d(d), 1395(f)b, 1395g,1395l(a), (i), and (n), 1395hh, 1395rr, 1395tt,1395ww, and 1395yy).

Subpart F—Specific Categories ofCosts

6. In § 413.114:a. Paragraph (a) is revised.b. In paragraph (c), the heading is

revised.c. Paragraph (d)(1) introductory text is

revised.

§ 413.114 Payment for posthospital SNFcare furnished by a swing-bed hospital.

(a) Purpose and basis. This sectionimplements section 1883 of the Act,which provides for payment forposthospital SNF care furnished byrural hospitals and CAHs having aswing-bed approval.

(1) Services furnished in costreporting periods beginning prior toOctober 1, 2001. Posthospital SNF carefurnished in general routine inpatientbeds in rural hospitals and CAHs is paidin accordance with the special rules inparagraph (c) of this section fordetermining the reasonable cost of thiscare. When furnished by rural and CAHswing-bed hospitals approved afterMarch 31, 1988 with more than 49 beds(but fewer than 100), these servicesmust also meet the additional paymentrequirements set forth in paragraph (d)of this section.

(2) Services furnished in costreporting periods beginning on and afterOctober 1, 2001. Posthospital SNF carefurnished in general routine inpatientbeds in rural hospitals (other thanCAHs) is paid in accordance with theprovisions of the prospective paymentsystem for SNFs described in subpart Jof this part. Posthospital SNF carefurnished in general routine inpatientbeds in CAHs is paid based onreasonable cost, in accordance with the

provisions of subparts A through G ofthis part (other than paragraphs (c) and(d) of this section).* * * * *

(c) Special rules for determining thereasonable cost of posthospital SNFcare furnished in cost reporting periodsbeginning prior to October 1, 2001.

(d) Additional requirements—(1)General rule. For services furnished incost reporting periods beginning prior toOctober 1, 2001, in order for Medicarepayment to be made to a swing-bedhospital with more than 49 beds (butfewer than 100), the following paymentrequirements must be met:* * * * *

7. In § 413.337, paragraph (e) is addedto read as follows:

§ 413.337 Methodology for calculating theprospective payment rates.

* * * * *(e) Pursuant to section 101 of the

Medicare, Medicaid, and SCHIPBalanced Budget Refinement Act of1999 (BBRA) and revised by section 314of the Medicare, Medicaid, and SCHIPBenefits Improvement and ProtectionAct of 2000 (BIPA), using the bestavailable data, the Secretary will issuea new regulation with a newly refinedcase-mix classification system to betteraccount for medically complex patients.Upon issuance of the new regulation,the temporary increases in payment forcertain high cost patients will no longerbe applicable.* * * * *

PART 424—CONDITIONS FORMEDICARE PAYMENT



9. In § 424.20(a)(2), the heading isrevised to read as follows:

§ 424.20 Requirements for posthospitalSNF care.

(a) * * *(2) Special requirement for

certifications performed prior to October1, 2001: A swing-bed hospital with morethan 49 beds (but fewer than 100) thatdoes not transfer a swing-bed patient toa SNF within 5 days of the availabilitydate. * * ** * * * *

Subpart C—Claims for Payment

10. In § 424.32, the introductory textof paragraph (a) is republished, andparagraphs (a)(2) and (a)(5) are revised.



§ 424.32 Basic requirements for all claims.(a) A claim must meet the following

requirements:* * * * *

(2) A claim for physician services,clinical psychologist services, or clinicalsocial worker services must includeappropriate diagnostic coding for thoseservices using ICD–9–CM.* * * * *

(5) All Part B claims for servicesfurnished to SNF residents (whetherfiled by the SNF or by another entity)must include the SNF’s Medicareprovider number and appropriateHCPCS coding.* * * * *

PART 489—PROVIDER AGREEMENTSAND SUPPLIER APPROVAL



Subpart B—Essentials of ProviderAgreements

12. In § 489.20, the introductory textis republished, and the introductory textof paragraph (s) is revised.

§ 489.20 Basic commitments.The provider agrees to the following:

* * * * *(s) In the case of an SNF, either to

furnish directly or make arrangements(as defined in § 409.3 of this chapter) forany physical, occupational, or speech-language therapy services furnished to aresident of the SNF under § 411.15(p) ofthis chapter (regardless of whether theresident is in a covered Part A stay), andalso either to furnish directly or makearrangements for all other Medicare-covered services furnished to a residentduring a covered Part A stay, except thefollowing:* * * * *

13. In § 489.21, the introductory textis republished, and paragraph (h) isrevised to read as follows:

§ 489.21 Specific limitations on charges.Except as specified in subpart C of

this part, the provider agrees not tocharge a beneficiary for any of thefollowing:* * * * *

(h) Items and services (other thanthose described in § 489.20(s)(1) through(15)) required to be furnished under§ 489.20(s) to a resident of an SNF(defined in § 411.15(p) of this chapter),for which Medicare payment would bemade if furnished by the SNF or byother providers or suppliers under

arrangements made with them by theSNF. For this purpose, a charge byanother provider or supplier for such anitem or service is treated as a charge bythe SNF for the item or service, and isalso prohibited.

Note: This appendix will not appear in theCode of Federal Regulations.

Appendix—Technical Features of theProposed 1997 Skilled Nursing FacilityMarket Basket Index

As discussed in the preamble of thisproposed rule, we propose to revise andrebase the SNF market basket. This appendixdescribes the technical aspects of the 1997-based index that we are proposing in thisrule. We present this description of themarket basket in three steps:

• A synopsis of the structural differencesbetween the 1992-and the 1997-based marketbaskets.

• A description of the methodology usedto develop the cost category weights in theproposed 1997-based market basket.

• A description of the data sources used tomeasure price change for each component ofthe proposed 1997-based market basket,making note of the differences, if any, fromthe price proxies used in the 1992-basedmarket basket.

I. Synopsis of Structural Changes Adopted inthe Proposed Revised and Rebased 1997Skilled Nursing Facility Market Basket

We are proposing just one major structuralchange between the current 1992-based andthe proposed 1997-based SNF marketbaskets, which is that more recent SNF costdata would be used in the proposed revisedand rebased SNF market basket.

The proposed 1997-based market basketcontains cost shares for six major costcategories that were derived from an editedset of FY 1997 Medicare Cost Reports forfreestanding SNFs that had Medicareexpenses. FY 1997 cost reports have costreporting periods beginning after September30, 1996 and before October 1, 1997. The1992-based market basket used data from thePPS–9 Medicare Cost Reports forfreestanding SNFs with Medicare expensesgreater than 1 percent of total expenses. PPS–9 cost reports have cost reporting periodsbeginning after September 30, 1991 andbefore October 1, 1992. Cost allocations forthe proposed 1997-based SNF market basketwithin the six major cost categories useMedicare Cost Reports and two Departmentof Commerce data sources: the 1997 BusinessExpenditures Survey, Bureau of the Census,Economics and Statistics Administration,and the 1997 Bureau of Economic Analysis’Annual Input-Output tables.

II. Methodology for Developing the CostCategory Weights

Cost category weights for the proposed1997-based market basket were developed intwo stages. First, base weights for six maincategories (wages and salaries, employeebenefits, contract labor, pharmaceuticals,capital-related expenses, and a residual ‘‘allother’’) were derived from the SNF Medicare

Cost Reports described above. The residual‘‘all other’’ cost category was divided intosubcategories, using U.S. Department ofCommerce data sources for the nursing homeindustry. Relationships from the 1997Business Expenditures Survey and data fromthe 1997 Annual Input-Output tables wereused to allocate the all other cost category.

Below we describe the source of the maincategory weights and their subcategories inthe proposed 1997-based market basket.

• Wages and Salaries: The wages andsalaries cost category is derived using 1997SNF Medicare Cost Reports. The share wasdetermined using wages and salaries fromWorksheet S–3, part II and total expensesfrom Worksheet B. This share represents thewage and salary share of costs for employeesof the nursing home, and does not includethe wages and salaries from contract labor,which is allocated to wages and salaries at alater step.

• Employee Benefits: The weight foremployee benefits was determined using1997 Medicare Cost Reports. The share wasderived using wage-related costs fromWorksheet S–3, part II.

• Contract Labor: The weight for thecontract labor cost category was derivedusing 1997 Medicare Cost Reports. For theproposed 1997-based SNF market basket, weused an edited group of cost reports withdata filled in for contract labor on WorksheetS–3, part II. This methodology differed fromthat of the 1992 SNF market basket (wherewe estimated contract labor costs using datafrom Worksheet A) since Worksheet S–3, partII, was not available in the 1992 Cost Reports.This methodology produces results that aresimilar to the contract labor share in the 1997Business Expenditures Survey. Contract laborwas not available in the 1992 Asset andExpenditure Survey. As explained in thepreamble, contract labor costs weredistributed between the wages and salariesand employee benefits cost categories, underthe assumption that contract costs shouldmove at the same rate as direct labor costseven though unit labor cost levels may bedifferent.

• Pharmaceuticals: The pharmaceuticalscost weight was derived from 1997 SNFMedicare Cost Reports. This share wascalculated using non-salary costs from thepharmacy and drugs charged to patients’ costcenters from Worksheet A.

• Capital-Related: The weight for theoverall capital-related expenses cost categorywas derived using 1997 SNF Medicare CostReport data from Worksheet B. Thesubcategory and vintage weights within theoverall capital-related expenses were derivedusing additional data sources. Themethodology for deriving these weights isdescribed below.

In determining the subcategory weights forcapital, we used a combination ofinformation from the 1997 SNF MedicareCost Reports and the 1997 Census BusinessExpenditures Survey. We estimated thedepreciation expense share of capital-relatedexpenses from the SNF Medicare CostReports using data from edited cost reportswith data completed on Worksheet G. For the1992-based SNF market basket, we had useddepreciation expenses from the 1992 Asset



and Expenditure Survey. When wecalculated the ratio of depreciation to wagesfrom the 1997 SNF Medicare Cost Reports,the result was consistent with the ratio fromthe 1997 Business Expenditures Survey. Thedistribution between building and fixedequipment and movable equipment wasdetermined from the 1997 BusinessExpenditures Survey. From thesecalculations, depreciation expenses (notincluding depreciation expenses implicitfrom leases) were estimated to be 33.2percent of total capital-related expendituresin 1997.

The interest expense share of capital-related expenses was also derived from thesame edited 1997 SNF Medicare Cost

Reports. Interest expenses are not identifiablein the 1997 Business Expenditures Survey.We determined the split of interest expensebetween for-profit and not-for-profit facilitiesbased on the distribution of long-term debtoutstanding by type of SNF (for-profit or not-for-profit) from the 1997 SNF Medicare CostReports. Interest expense (not includinginterest expenses implicit from leases) wasestimated to be 24.3 percent of total capital-related expenditures in 1997.

We used the 1997 Business ExpendituresSurvey to estimate the proportion of capital-related expenses attributable to leasingbuilding and fixed and movable equipment.This share was estimated to be 34.9 percentof capital-related expenses in 1997. The split

between fixed and movable lease expenseswas directly available from the 1997 BusinessExpenditures Survey. We used this split, andthe distribution of depreciation and interestcalculated above to distribute leases amongthese cost categories. The remaining residualis considered to be other capital-relatedexpenses (insurance, taxes, other). Othercapital-related expenses were estimated to be7.7 percent of total capital-relatedexpenditures in 1997.

Table A–1 shows the capital-relatedexpense distribution (including expensesfrom leases) in the proposed 1997 SNF PPSmarket basket and the 1992 SNF marketbasket.

TABLE A–1.—CAPITAL-RELATED EXPENSE DISTRIBUTION

1992-basedSNF capital-

relatedexpenses *

Proposed1997-basedSNF capital-

relatedexpenses *

Total ......................................................................................................................................................................... 100.0 100.0Depreciation ............................................................................................................................................................. 60.5 53.3Building and Fixed Equipment ................................................................................................................................. 42.1 36.5Movable equipment ................................................................................................................................................. 18.4 16.8Interest ..................................................................................................................................................................... 32.6 39.0Other capital-related expense ................................................................................................................................. 6.9 7.7

* As a percent of Total Capital-Related Expenses.

As explained in section III.B of thepreamble, our methodology for determiningthe price change of capital-related expensesaccounts for the vintage nature of capital,which is the acquisition and use of capitalover time. In order to capture this vintagenature, the price proxies must be vintage-weighted. The determination of these vintageweights occurs in two steps. First, we mustdetermine the expected useful life of capitaland debt instruments in SNFs. Second, wemust identify the proportion of expenditureswithin a cost category that are attributable toeach individual year over the useful life ofthe relevant capital assets, or the vintageweights.

The derivation of useful life of capital isexplained in detail in the May 12, 1998interim final rule (63 FR 26252). The usefullives for the proposed 1997-based SNFmarket basket are the same as the 1992-basedSNF market basket. The data source that waspreviously used to develop the useful livesof capital is no longer available and a suitablereplacement has not been identified. Wewelcome comments on any data sources thatwould provide the necessary information fordetermining useful lives of capital and debtinstruments.

Given the expected useful life of capitaland debt instruments, we must determine theproportion of capital expendituresattributable to each year of the expecteduseful life by cost category. Theseproportions represent the vintage weights.We were not able to find an historical timeseries of capital expenditures by SNFs.Therefore, we approximated the capital

expenditure patterns of SNFs over time usingalternative SNF data sources. For buildingand fixed equipment, we used the stock ofbeds in nursing homes from the HCFANational Health Accounts for 1962 through1997. We then used the change in the stockof beds each year to approximate buildingand fixed equipment purchases for that year.This procedure assumes that bed growthreflects the growth in capital-related costs inSNFs for building and fixed equipment. Webelieve this assumption is reasonable sincethe number of beds reflects the size of theSNF, and as the SNF adds beds, it also addsfixed capital.

For movable equipment, we used availableSNF data to capture the changes in intensityof SNF services that would cause SNFs topurchase movable equipment. We estimatedthe change in intensity as the trend in theratio of non-therapy ancillary costs to routinecosts from the 1989 through 1997 SNFMedicare Cost Reports. We estimated thisratio for 1962 through 1988 using regressionanalysis. The time series of the ratio of non-therapy ancillary costs to routine costs forSNFs measures changes in intensity in SNFservices, which are assumed to be associatedwith movable equipment purchase patterns.The assumption here is that as non-therapyancillary costs increase compared withroutine costs, the SNF caseload becomesmore complex and would require moremovable equipment. Again, the lack of directmovable equipment purchase data for SNFsover time required us to use alternative SNFdata sources. The resulting two time series,determined from beds and the ratio of non-

therapy ancillary to routine costs, reflect realcapital purchases of building and fixedequipment and movable equipment overtime, respectively.

To obtain nominal purchases, which areused to determine the vintage weights forinterest, we converted the two real capitalpurchase series from 1963 through 1997determined above to nominal capitalpurchase series using their respective priceproxies (Boeckh institutional constructionindex and PPI for machinery and equipment).We then combined the two nominal seriesinto one nominal capital purchase series for1963 through 1997. Nominal capitalpurchases are needed for interest vintageweights to capture the value of the debtinstrument.

Once these capital purchase time serieswere created for 1963 through 1997, weaveraged different periods to obtain anaverage capital purchase pattern over time.For building and fixed equipment weaveraged thirteen 23-year periods, formovable equipment we averaged twenty-six10-year periods, and for interest we averagedfourteen 22-year periods. The vintage weightfor a given year is calculated by dividing thecapital purchase amount in any given year bythe total amount of purchases during theexpected useful life of the equipment or debtinstrument. This methodology was describedin full in the May 12, 1998 Federal Register(63 FR 26252). The resulting vintage weightsfor each of these cost categories are shown inTable A–2.



APPENDIX TABLE A–2.—VINTAGEWEIGHTS FOR PROPOSED 1997-BASED SNF PPS CAPITAL-RELATEDPRICE PROXIES

YearBuildingand fixed

equipment

Movableequipment Interest

1 ...... 0.082 0.083 0.0252 ...... 0.086 0.088 0.0283 ...... 0.085 0.089 0.0314 ...... 0.083 0.090 0.0345 ...... 0.077 0.091 0.0386 ...... 0.069 0.097 0.0427 ...... 0.063 0.106 0.0468 ...... 0.060 0.111 0.0499 ...... 0.050 0.116 0.05110 .... 0.040 0.128 0.05111 .... 0.040 .................. 0.05212 .... 0.036 .................. 0.05313 .... 0.030 .................. 0.05114 .... 0.020 .................. 0.05015 .... 0.016 .................. 0.04916 .... 0.014 .................. 0.04817 .... 0.012 .................. 0.04918 .... 0.017 .................. 0.05019 .... 0.018 .................. 0.05120 .... 0.023 .................. 0.05121 .... 0.025 .................. 0.04922 .... 0.027 .................. 0.05123 .... 0.029 .................. ..................

Total 1.000 1.000 1.000

Sources: 1997 SNF Medicare Cost Reports;HCFA, National Health Accounts.

Note: Totals may not sum to 1.000 due torounding.

• All Other: Subcategory weights for theAll Other category were derived usinginformation from two U.S. Department ofCommerce data sources. Weights for the threeutilities cost categories, as well as that fortelephone services, were derived from the1997 Business Expenditure Survey. Weightsfor other cost categories were derived fromthe 1997 Annual Input-Output tables.

III. Price Proxies Used To Measure CostCategory Growth

A. Wages and Salaries

For measuring price growth in the wagesand salaries cost component of the 1997-based SNF market basket, we propose usingthe percentage change in the ECI for wagesand salaries for private nursing homes. TheECI for wages and salaries for private nursinghomes is a fixed-weight index that measuresthe rate of change in employee wage rates perhour worked. It measures pure price changeand is not affected by shifts amongoccupations. Average Hourly Earnings (AHE)confounds changes in the proportion ofdifferent occupations with changes inearnings levels for a given occupation and,

thus, is an inferior price proxy for ourpurpose. Even so, using the AHE for nursinghomes has little effect on the percentagechange in the overall proposed 1997 SNFmarket basket. If we used the AHE instead ofthe ECI, the average annual growth ratebetween 1995 and 2000 would have beenhigher by 0.1 percentage points per year. Thisdifference reflects skill mix shifts that wouldbe reflected in other factors of an updateframework as conceptualized in section IV ofthe preamble. In addition, while the ECI isfor all nursing homes, not just SNFs, 77percent of employment in the nursing homeindustry in 1998 and 1999 was in SNFs.While this wage measure includes othernursing homes in addition to skilled nursingfacilities, we believe it adequately reflects thewage changes occurring in SNFs. It is also theonly acceptable statistical source for nursinghome wages that met our criteria ofreliability, timeliness, accessibility, andrelevance.

B. Employee BenefitsFor measuring price growth in the

proposed 1997-based market basket, thepercentage change in the ECI for benefits forprivate nursing homes is used. The ECI forbenefits for private nursing homes is also afixed-weight index that measures pure pricechange and is not affected by shifts inoccupation. Again, we believe that the ECIfor nursing homes is the most acceptable andappropriate benefit series available fromreliable, timely, accessible, and relevantstatistical sources.

C. All Other Expenses• Nonmedical professional fees: The ECI

for compensation for Private IndustryProfessional, Technical, and SpecialtyWorkers is used to measure price changes innonmedical professional fees.

• Electricity: For measuring price changein the electricity cost category, the PPI forCommercial Electric Power is used.

• Fuels, nonhighway: For measuring pricechange in the Fuels, Nonhighway costcategory, the PPI for Commercial Natural Gasis used.

• Water and Sewerage: For measuringprice change in the Water and Sewerage costcategory, the CPI–U (Consumer Price Indexfor All Urban Consumers) for Water andSewerage is used.

• Food-wholesale purchases: Formeasuring price change in the Food-wholesale purchases cost category, the PPIfor Processed Foods is used.

• Food-retail purchases: For measuringprice change in the Food-retail purchasescost category, the CPI–U for Food Away FromHome is used. This reflects the use ofcontract food service by some SNFs.

• Pharmaceuticals: For measuring pricechange in the Pharmaceuticals cost category,the PPI for Prescription Drugs is used.

• Chemicals: For measuring price changein the Chemicals cost category, the PPI forIndustrial Chemicals is used.

• Rubber and Plastics: For measuring pricechange in the Rubber and Plastics costcategory, the PPI for Rubber and PlasticProducts is used.

• Paper Products: For measuring pricechange in the Paper Products cost category,the PPI for Converted Paper and Paperboardis used.

• Miscellaneous Products: For measuringprice change in the Miscellaneous Productscost category, the PPI for Finished Goods lessFood and Energy is used. This represents achange from the 1992 SNF market basket, inwhich the PPI for Finished Goods is used.Both food and energy are already adequatelyrepresented in separate cost categories andshould not also be reflected in this costcategory.

• Telephone Services: The percentagechange in the price of Telephone Services asmeasured by the CPI–U is applied to thiscomponent.

• Labor-Intensive Services: For measuringprice change in the Labor-Intensive Servicescost category, the ECI for Compensation forPrivate Service Occupations is used.

• Non Labor-Intensive Services: Formeasuring price change in the Non Labor-Intensive Services cost category, the CPI–Ufor All Items is used.

D. Capital-Related

All capital-related expense categories havethe same price proxies as those used in the1992-based SNF PPS market basket describedin the May 12, 1998 Federal Register (63 FR26252). The price proxies for the SNF capital-related expenses are described below:

• Depreciation—Building and FixedEquipment: The Boeckh InstitutionalConstruction Index for unit prices of fixedassets.

• Depreciation—Movable Equipment: ThePPI for Machinery and Equipment.

• Interest—Government and NonprofitSNFs: The Average Yield for MunicipalBonds from the Bond Buyer Index of 20bonds. HCFA input price indexes, includingthis rebased SNF index, appropriately reflectthe rate of change in the price proxy and notthe level of the price proxy. While SNFs mayface different interest rate levels than thoseincluded in the Bond Buyer Index, the rateof change between the two is notsignificantly different.

• Interest—For-profit SNFs: The AverageYield for Moody’s AAA Corporate Bonds.Again, the proposed rebased SNF indexfocuses on the rate of change in this interestrate and not the level of the interest rate.

• Other Capital-related Expenses: TheCPI–U for Residential Rent.

APPENDIX TABLE A–3.—A COMPARISON OF PRICE PROXIES USED IN THE 1992-BASED AND PROPOSED 1997-BASEDSKILLED NURSING FACILITY MARKET BASKETS

Cost category 1992-based price proxy 1997-basedprice proxy

Wages and Salaries .................................................................. ECI for Wages and Salaries for Private Nursing Homes ........ Same.Employee Benefits ..................................................................... ECI for Benefits for Private Nursing Homes ............................ Same.



APPENDIX TABLE A–3.—A COMPARISON OF PRICE PROXIES USED IN THE 1992-BASED AND PROPOSED 1997-BASEDSKILLED NURSING FACILITY MARKET BASKETS—Continued

Cost category 1992-based price proxy 1997-basedprice proxy

Nonmedical professional fees ................................................... ECI for Compensation for Private Professional and TechnicalWorkers.

Same.

Electricity .................................................................................... PPI for Commercial Electric Power ......................................... Same.Fuels .......................................................................................... PPI for Commercial Natural Gas ............................................. Same.Water and sewerage ................................................................. CPI–U for Water and Sewerage .............................................. Same.Food—Wholesale purchases ..................................................... PPI—Processed Foods ............................................................ Same.Food—Retail purchases ............................................................ CPI–U—Food Away From Home ............................................. Same.Pharmaceuticals ........................................................................ PPI for Prescription Drugs ....................................................... Same.Chemicals .................................................................................. PPI for Industrial Chemicals .................................................... Same.Rubber and plastics ................................................................... PPI for Rubber and Plastic Products ....................................... Same.Paper products .......................................................................... PPI for Converted Paper and Paperboard .............................. Same.Miscellaneous products ............................................................. PPI for Finished Goods ............................................................ PPI for Finished

Goods lessFood and En-ergy.

Telephone services .................................................................... CPI–U for Telephone Services ................................................ Same.Labor-intensive services ............................................................ ECI for Compensation for private service occupations ........... Same.Non labor-intensive services ..................................................... CPI–U for All Items .................................................................. Same.Depreciation: Building and Fixed Equipment ............................ Boeckh Institutional Construction Index ................................... Same.Depreciation: Movable Equipment ............................................. PPI for Machinery and Equipment ........................................... Same.Interest: Government and Nonprofit SNFs ................................ Average Yield Municipal Bonds (Bond Buyer Index-20 bonds) Same.Interest: For-profit SNFs ............................................................ Average Yield Moody’s AAA Bonds ........................................ Same.Other Capital-related Expenses ................................................ CPI–U for Residential Rent ...................................................... Same.

(Catalog of Federal Domestic AssistanceProgram No. 93.773, Medicare-HospitalInsurance Program; and No. 93.774,

Medicare-Supplementary Medical InsuranceProgram)

Dated: March 8, 2001.Michael McMullan,Acting Deputy Administrator, Health CareFinancing Administration.

Dated: April 23, 2001.Tommy G. Thompson,Secretary.



Thursday,

May 10, 2001

Part III

Department ofAgricultureCooperative State Research, Education,and Extension Service

Alaska Native-Serving and NativeHawaiian-Serving Institutions EducationGrants Program for Fiscal Year 2001;Request for Proposals and Request forStakeholder Input; Notice




Cooperative State Research,Education, and Extension Service

Alaska Native-Serving and NativeHawaiian-Serving InstitutionsEducation Grants Program for FiscalYear 2001; Request for Proposals andRequest for Stakeholder Input

AGENCY: Cooperative State Research,Education, and Extension Service,USDA.ACTION: Notice of request for proposalsand request for stakeholder input.

SUMMARY: The Cooperative StateResearch, Education, and ExtensionService (CSREES) is announcing theAlaska Native-Serving and NativeHawaiian-Serving InstitutionsEducation Grants Program for FiscalYear (FY) 2001. Proposals are herebyrequested from eligible institutions asidentified herein for consideration ofgrant awards.

By this notice, CSREES also requestsstakeholder input from any interestedparty regarding the FY 2001 AlaskaNative-Serving and Native Hawaiian-Serving Institutions Education GrantsProgram Request for Proposals (RFP) foruse in development of any future RFPsfor this program.DATES: Proposals must be received on orbefore 5:00 P.M. July 6, 2001. Proposalsreceived after this date will not beconsidered for funding.

Comments regarding this RFP areinvited for six months from the issuanceof this notice. Comments received afterthat date will be considered to theextent practicable.ADDRESSES: Hand-delivered proposals(brought in person by the applicant orthrough a courier service) must bedelivered to the following address:Alaska Native-Serving and NativeHawaiian-Serving InstitutionsEducation Grants Program; ‘‘ ProposalServices Unit; Office of ExtramuralPrograms; Cooperative State Research,Education, and Extension Service; U.S.Department of Agriculture; Room 1307,Waterfront Centre; 800 9th Street S.W.;Washington, D.C. 20024. The telephonenumber is (202) 401–5048. Proposalstransmitted via a facsimile (fax)machine or via e-mail will not beaccepted.

Proposals submitted through the U.S.Postal Service should be sent to thefollowing address: Alaska Native-Serving and Native Hawaiian-ServingInstitutions Education Grants Program;‘‘ Proposal Services Unit; Office ofExtramural Programs; Cooperative StateResearch, Education, and Extension

Service; U.S. Department of Agriculture;STOP 2245; 1400 Independence AvenueS.W., Washington, D.C. 20250–2245.

Written stakeholder comments shouldbe submitted by mail to: Policy andProgram Liaison Staff; Office ofExtramural Programs; USDA-CSREES;STOP 2299; 1400 Independence AvenueS.W.; Washington, D.C. 20250–2299; orvia e-mail to: [email protected].(This e-mail address is intended only forreceiving stakeholder commentsregarding this RFP, and not forrequesting information or forms.) Inyour comments, please state that yourare responding to the FY 2001 AlaskaNative-Serving and Native Hawaiian-Serving Institutions Education GrantsProgram.

FOR FURTHER INFORMATION CONTACT: Dr.Jeffrey L. Gilmore, Higher EducationPrograms; Cooperative State Research,Education, and Extension Service; U.S.Department of Agriculture; STOP 2251;1400 Independence Avenue S.W.;Washington, D.C. 20250–2251;telephone: (202) 720–1973; e-mail:[email protected].

Stakeholder Input: CSREES isrequesting comments regarding thissolicitation of applications from anyinterested party. In your comments,please include the name of the programand the fiscal year RFP to which you areresponding. These comments will beconsidered in the development of thenext RFP for the program. Suchcomments will be used in meeting therequirements of section 103(c)(2) of theAgricultural Research, Extension, andEducation Reform Act of 1998, 7 U.S.C.7613(c). Comments should be submittedas provided in the ‘‘Addresses’’ and‘‘Dates’’ portions of this Notice.SUPPLEMENTARY INFORMATION:

Table of Contents

A. Legislative AuthorityB. Catalog of Federal Domestic AssistanceC. Purpose of the ProgramD. Eligible InstitutionsE. Demonstration or Certification of

EligibilityF. Available FundsG. Scope of Activities to be FundedH. Proposal Submission LimitationsI. Project DurationJ. Matching RequirementsK. Number and Size of AwardsL. Indirect CostsM. Types of ProposalsN. Maximum Number of Grants or Sub-

Grants Per InstitutionO. Proposal EvaluationP. How to Obtain Application MaterialsQ. What to SubmitR. Number of Copies to SubmitS. Where and When to SubmitT. Acknowledgment of ProposalsU. Intent to Submit a Proposal

V. Other Federal Statutes and ApplicableRegulations

A. Legislative AuthorityAuthority for this program is

contained in section 759 of Public Law106–78, the FY 2000 ‘‘Agriculture, RuralDevelopment, Food and DrugAdministration, and Related AgenciesAppropriations Act’’ (7 U.S.C. 3242). Inthe FY 2001 ‘‘Agriculture, RuralDevelopment, Food and DrugAdministration, and Related AgenciesAppropriations Act’’ (Pub. L. 106–387),Congress appropriated $3,000,000 for aprogram of noncompetitive grants, to beawarded on an equal basis, to AlaskaNative-Serving and Native Hawaiian-Serving Institutions to carry out highereducation programs in the food andagricultural sciences.

B. Catalog of Federal DomesticAssistance

This program is listed in the Catalogof Federal Domestic Assistance underNo. 10.228, Alaska Native-Serving andNative Hawaiian-Serving InstitutionsEducation Grants Program.

C. Purpose of the ProgramGrants will be made to eligible

institutions for the purpose ofpromoting and strengthening the abilityof Alaska Native-Serving Institutionsand Native Hawaiian-ServingInstitutions to carry out highereducation programs in the food andagricultural sciences. Projects funded bythis program in FY 2001 must be aimedat persons enrolled in or teaching at aninstitution of higher education. Grantfunds also may be used for othereducation programs that have a directand explicit connection to highereducation, such as recruitment,mentoring, and support programs forunder-represented students at the highschool level in order to enhanceeducation equity and prepare them foradvanced study at the collegiate leveland for careers related to the food,agricultural, and natural resourcesystems of the United States.

The use of grant funds to plan,acquire, or construct a building orfacility is not allowed under thisprogram. With prior approval, and inaccordance with the cost principles setforth in OMB Circular No. A–21, somegrant funds may be used for minoralterations, renovations, or repairsdeemed necessary to retrofit existingteaching spaces in order to carry out afunded project. However, requests touse grant funds for such purposes mustdemonstrate that such expenditures areessential to achieving the major purposefor which the grant request is made.



Note that in FY 2001, research andcommunity development projects willnot be supported.

D. Eligible InstitutionsOnly public or private, nonprofit

Alaska Native-Serving and NativeHawaiian-Serving Institutions of highereducation that meet the definitions ofAlaska Native-Serving Institution orNative Hawaiian-Serving Institutionestablished in Title III, Part A of theHigher Education Act of 1965, asamended (20 U.S.C. section 1059d.) areeligible institutions under this program.Only individual institutions, includingindependent branch campuses, mayapply for grant awards under thisprogram. A higher education system,foundation, or district may not apply onbehalf of individual institutions. An‘‘independent branch campus’’ means aunit of a 2-year or 4-year institution ofhigher education that is geographicallyapart from the main campus, ispermanent in nature, offers courses forcredit and programs leading to anassociate or bachelor’s degree, and isautonomous to the extent that it has itsown faculty and administrative orsupervisory organization and its ownbudgetary and hiring authority.

E. Demonstration or Certification ofEligibility

At the time of application, eachinstitution will be required todemonstrate or certify that it is aneligible institution under this program.

If an institution has received a‘‘Designation as an Eligible Institution’’letter for FY 2001 funding under theTitle III, Part A, Alaska Native-ServingInstitutions Program or the NativeHawaiian-Serving Institutions Programfrom the U.S. Department of Education,the institution may submit a copy of theletter along with its application tosatisfy the demonstration of eligibilityrequirement.

If an institution currently has a TitleIII, Part A grant from the U.S.Department of Education that does notend prior to September 30, 2001, theinstitution may submit a copy of the‘‘Notice of Award’’ letter for that grantalong with its application to satisfy thedemonstration of eligibilityrequirement.

Otherwise, an institution must submita letter, signed by the institution’s‘‘authorized organizationalrepresentative’’ (AOR) certifying that itmeets the requirements of an AlaskaNative-Serving Institution or NativeHawaiian-Serving Institution as definedin the Higher Education Act of 1965, asamended (20 U.S.C. 1059d.). Theinstitution’s AOR is defined to mean the

president, or chief executive officer orother designated official of the applicantorganization, who has the authority tocommit the resources of theorganization. The AOR must certify that:

(1) The institution, or parentinstitution in the case of an independentbranch campus, is legally authorized bythe State in which it is located toprovide an educational program forwhich it awards an associate’s orbachelor’s degree, or that it is a junioror community college;

(2) The institution, or parentinstitution in the case of an independentbranch campus, is accredited by anationally recognized accreditingagency or association determined by theSecretary of Education to be a reliableauthority as to the quality of trainingoffered, or making reasonable progresstoward such accreditation;

(3) At least 50 percent of enrolleddegree students are receiving need-based assistance under Title IV of theHigher Education Act, or that asubstantial percentage of students arereceiving Pell Grants in comparisonwith the percentage of studentsreceiving Pell Grants at all similarinstitutions (institution of highereducation, or junior or communitycollege);

(4) Unless waived by the Secretary ofEducation, the average educational andgeneral expenditures per full-timeequivalent undergraduate student arelow in comparison with the averageeducational and general expendituresper full-time equivalent student atinstitutions that offer similarinstruction; and

(5) For an Alaska Native-ServingInstitution, at the time of application, ithas an enrollment of undergraduatestudents that is at least 20 percentAlaska Native students (where the term‘‘Alaska Native’’ has the meaning giventhe term in section 9308 of theElementary and Secondary EducationAct of 1965 [20 U.S.C. 7938]); or

(6) For a Native Hawaiian-ServingInstitution, at the time of application, ithas an enrollment of undergraduatestudents that is at least 10 percentNative Hawaiian students (where theterm ‘‘Native Hawaiian’’ has themeaning given the term in section 9212of the Elementary and SecondaryEducation Act of 1965 [20 U.S.C. 7912]).

F. Available FundsThe $3,000,000 appropriated for FY

2001, is reduced by $6,600 to reflect the0.22 percent government-wide recission,and $119,736 is retained by theCooperative State Research, Education,and Extension Service (CSREES) forFederal Administration costs, leaving

$2,873,664 for grant awards. Of thisamount, half will be awarded non-competitively to eligible institutions inAlaska ($1,436,832) and half will beawarded non-competitively to eligibleinstitutions in Hawaii ($1,436,832).CSREES has determined that theamounts available to each State will beallocated equally to all eligibleinstitutions that submit grantapplications in response to this notice.

G. Scope of Activities To Be FundedInstitutions receiving funds under this

program must use the funds for thepurpose of promoting and strengtheningthe abilities of Alaska Native-Serving orNative Hawaiian-Serving Institutions tocarry out higher education programs inthe food and agricultural sciences.CSREES intends this program to addresshigher education needs, as determinedby each institution, within a broadlydefined arena of food and agriculturalsciences-related disciplines.

Food and agricultural sciences highereducation programs are defined toinclude academic programs inagriculture, food and fiber, renewablenatural resources, forestry, aquaculture,veterinary medicine, family andconsumer sciences, home economics,nutrition and dietetics, and other highereducation activities and fields of studyrelated to the production, processing,marketing, distribution, conservation,utilization, consumption, anddevelopment of food and agriculturallyrelated products and services.

Grants shall be used:(1) To support the activities of

consortia of Alaska Native-Serving orNative Hawaiian-Serving Institutions toenhance educational equity for underrepresented students;

(2) To strengthen institutionaleducation capacities, includinglibraries, curriculum, faculty, scientificinstrumentation, instruction deliverysystems, and student recruitment andretention, in order to respond toidentified State, regional, national, orinternational educational needs in thefood and agriculture sciences;

(3) To attract and supportundergraduate and graduate studentsfrom under represented groups in orderto prepare them for careers related to thefood, agricultural, and natural resourcesystems of the United States, beginningwith the mentoring of students at thehigh school level, and continuing withthe provision of financial support forstudents through their attainment of adoctoral degree; or

(4) To facilitate cooperative initiativesbetween two or more Alaska Native-Serving or Native Hawaiian-ServingInstitutions, or between Alaska Native-



Serving or Native Hawaiian-ServingInstitutions and units of Stategovernment or the private sector, tomaximize the development and use ofresources, such as faculty, facilities, andequipment, to improve food andagricultural sciences teaching programs.

H. Proposal Submission Limitations

Each institution may submit oneapplication for funding.

I. Project Duration

A project proposal may requestfunding for a project period from 12months up to 36 months duration (fromone to three years).

J. Matching Requirement

CSREES encourages, but does notrequire, non-Federal matching supportfor this program. Documentation ofmatching support is neither requirednor requested.

K. Number and Size of Awards

The number of grants awarded in FY2001, and the amount of funds availableto each institution in FY 2001, willdepend on the number of institutionssubmitting grant applications inresponse to this notice. If all institutionscurrently eligible for Title III, Part Agrants from the U.S. Department ofEducation submit acceptableapplications to this program, CSREESestimates it will make 19 or 20 awards,one to each eligible institution, of$140,000 to $150,000 each. Applicationbudgets should reflect these estimates.

L. Indirect Costs

Indirect costs are allowable costsunder this program. The applicantshould use the institution’s approvednegotiated instruction indirect cost rate(or research rate if there is no negotiatedinstruction rate). An institution mayelect and is encouraged to request,commensurate with planned grantactivities, an amount less than the fullnegotiated indirect cost rate.

M. Types of Proposals

An eligible institution or independentbranch campus may submit a ‘‘regulargrant proposal’’ for project activities tobe undertaken principally on behalf ofits own students or faculty, and to bemanaged primarily by its ownpersonnel. CSREES estimates thatawards for a regular grant proposal willbe in the range of $140,000 to $150,000each. Budget forms submitted with grantapplications should reflect this estimate.

To facilitate inter-institutionalcooperation and collaborativeinitiatives, two or more eligibleinstitutions within a State may form a

consortium and submit a ‘‘consortiumgrant proposal.’’ In such cases, oneinstitution is to be designated as the‘‘lead institution.’’ The lead institutionwill receive the award on behalf of allthe consortium members and will beresponsible for managing the grant. Theother consortium members will be sub-grantees of the primary award. Allconsortium members must be eligibleinstitutions under this program. Aconsortium grant proposal must containa separate plan of work and a separatebudget for each consortium member, aswell as an overall project plan of workand overall budget from the leadinstitution. A consortium project will beawarded grant funds in proportion tothe number of consortium members(e.g., approximately $140,000 to$150,000 times the number ofinstitutions), and each consortiummember is to receive funds on an equalbasis. Budget forms should reflect theserequirements and estimates.

N. Maximum Number of Grants or Sub-Grants Per Institution

Only one grant may be awarded toany single institution or eligible branchcampus under the Alaska Native-Serving and Native Hawaiian-ServingInstitutions Education Grants Program.This ceiling includes sub-grant awardsmade under a consortium arrangement(i.e., an institution may not participateas a sub-grantee on a consortium grantand also receive a regular grant on itsown). Individuals may participate inmultiple grant projects and may becompensated through multiplesubcontracts for consultant services.

O. Proposal EvaluationAlthough project grants will be

awarded non-competitively, allproposed projects will be reviewed byCSREES to determine whether theproject plan of work is consistent withthe guidelines contained in this notice.Each proposed project also will beevaluated for its technical merit byCSREES staff and by expert educatorsand scientists from other Federalagencies as needed. CSREES staff willconsider the following criteria andweights when evaluating the technicalmerit of the proposals submitted:

Potential for Advancing the Quality ofEducation—20 Points

This criterion is used to assess thelikelihood that the project will have animpact on the quality of food andagricultural sciences higher educationby promoting and strengtheninginstitutional capacities to meet clearlydelineated needs. Elements includeidentification of needs, justification for

the project, building institutionalcapacity, advancing education equity,continuation plans, innovation,multidisciplinary focus, and expectedproducts and results.

Proposed Approach—35 Points

This criterion relates to the soundnessof the proposed approach and includesobjectives, plan of operation, timetable,evaluation and dissemination plans, andpartnerships and collaborative efforts.

Key Personnel—20 Points

This criterion relates to the adequacyof the number and qualifications of thekey persons who will carry out theproject.

Institutional Commitment andResources—15 Points

This criterion relates to theinstitution’s commitment to the projectand the adequacy of institutionalresources available to carry out theproject.

Budget and Cost-Effectiveness—10Points

This criterion relates to the extent towhich the total budget adequatelysupports the project and is cost-effective. Elements considered includethe necessity and reasonableness ofcosts to carry out project activities andachieve project objectives; theappropriateness of budget allocationsbetween the applicant and anycollaborating institution(s); theadequacy of time committed to theproject by key project personnel; andthe degree to which the projectmaximizes the use of limited resources,optimizes educational value for thedollar, achieves economies of scale,leverages additional funds, includessound quality-control measures, andfocuses expertise and activity ontargeted educational areas.

P. How To Obtain ApplicationMaterials

An Application Kit containingprogram application materials will bemade available to eligible institutionsupon request. These materials includeall the application and budget forms,instructions, and other relevantinformation needed to prepare andsubmit grant applications. Copies of theApplication Kit may be requested fromthe Proposal Services Unit; Office ofExtramural Programs; Cooperative StateResearch, Education, and ExtensionService; U.S. Department of Agriculture;STOP 2245; 1400 IndependenceAvenue, SW.; Washington, DC 20250–2245. The telephone number is (202)401–5048. When contacting the



Proposal Services Unit, please indicatethat you are requesting forms for the FY2001 Alaska Native-Serving and NativeHawaiian-Serving InstitutionsEducation Grants Program.

Application materials may also berequested via Internet by sending amessage with your name, mailingaddress (not e-mail) and telephonenumber to [email protected] that statesthat you wish to receive a copy of theapplication materials for the FY 2001Alaska Native-Serving and NativeHawaiian-Serving InstitutionsEducation Grants Program. Thematerials will then be mailed to you(not e-mailed) as quickly as possible.

Q. What To SubmitEach institution must submit the

following forms, information, anddocumentation in an applicationpackage so that it arrives on or beforethe due date stated in this notice:

(1) A Form CSREES–712, ‘‘HigherEducation Proposal Cover Page,’’ mustbe completed in its entirety, and onecopy of the form must contain the pen-and-ink signatures of the projectdirector(s) and AOR for the applicantinstitution;

(2) A ‘‘Table of Contents,’’ for ease inlocating information in the applicationpackage, must be placed immediatelyfollowing the proposal cover page;

(3) Documentation of eligibility, or aletter certifying eligibility signed by theAOR, for each institution that is a partyto a grant application (i.e.,documentation from each of theinstitutions participating in aconsortium grant), as outlined in sectionE. ‘‘Demonstration or Certification ofEligibility’’ of this notice;

(4) A one page ‘‘Project Summary’’outlining the need for the project andthe plan of work, and including thename of the institution(s), project title,and project director(s);

(5) A detailed ‘‘Plan of Work’’ fromthe applicant institution (and from eachof the other institutions participating inthe proposal in the case of a consortiumgrant) limited to ten, double-spacedpages for each eligible institution that isa party to the grant applicationcontaining: (a) A general statement ofthe institution’s long-range goals andhow the proposed project aligns withthose goals; (b) a statement detailing thehigher education needs the project willaddress; (c) the objectives of theproposed project; (d) a justification forthe project explaining how the proposedproject will help the institution enhanceits academic programs, and promote andstrengthen its abilities to carry outhigher education programs in the foodand agricultural sciences as outlined in

this notice; (e) a detailed explanation ofthe procedures that will be used toachieve the project objectives; (f) adescription of the personnel who willconduct the project, including anoutline of who will be responsible foreach activity; (g) a detailed timelineshowing the schedule for conductingthe project; (h) the criteria andprocedures to be used for tracking theprogress and accomplishments of theproject, including any data andmethodologies that will be used toanalyze the extent to which projectobjectives were met; (i) a list of expectedproject outcomes and products,including new courses, videos, CDs,other teaching materials, etc. and (j)plans for disseminating anticipatedproducts and outcomes resulting fromthe project.

(6) A resume or curriculum vita (C.V.)for each faculty member or staff personcontributing significantly to the project(Form CSREES–708, ‘‘Summary Vita’’may be used for this purpose);

(7) A Form CSREES–713, ‘‘HigherEducation Budget’’ for each year ofrequested support, including budgetforms for the lead institution and eachconsortium member for a consortiumgrant proposal;

(8) A summary budget, for multi-yearand consortium projects, detailingrequested support for the overall projectperiod (use Form CSREES–713, ‘‘HigherEducation Budget’’);

(9) A ‘‘Budget Narrative’’ providingdetailed explanation and justificationfor each requested budget line item;

(10) A completed Form CSREES–663,‘‘Current and Pending Support’’ for eachkey person who will be working on theproject;

(11) A Form CSREES–1234, ‘‘NationalEnvironmental Policy Act ExclusionsForm’’ covering planned projectactivities; and

(12) A Form CSREES–662,‘‘Assurance Statement(s)’’ coveringplanned project activities.

Supplemental material such asphotographs, journal reprints,brochures, and other pertinent materialsdeemed to be illustrative of major pointsof the proposal but unsuitable forinclusion in the proposal narrativeitself, may be placed in an ‘‘Appendix’’and attached to the end of the proposal.

R. Number of Copies to SubmitAn original and six (6) copies of a

proposal must be submitted. Proposalsshould contain all requestedinformation when submitted. Eachproposal should be typed on 81⁄2″ x 11″white paper, double-spaced, and on oneside of the page only. Please note thatthe text of the proposal should be

prepared using no type smaller than 12point font size and one-inch margins.The entire proposal should bepaginated. All copies of the proposalmust be submitted in one package. Eachcopy of the proposal must be stapledsecurely in the upper left-hand corner(Do not bind).

S. Where and When To Submit

Hand-delivered proposals (brought inperson by the applicant or through acourier service) must be received on orbefore 5 P.M. July 6, 2001, at thefollowing address: Alaska Native-Serving and Native Hawaiian-ServingInstitutions Education Grants Program;c/o Proposal Services Unit; Office ofExtramural Programs; Cooperative StateResearch, Education, and ExtensionService; U.S. Department of Agriculture;Room 1307, Waterfront Centre; 800 9thStreet, SW., Washington, DC 20024. Thetelephone number is (202) 401–5048.Proposals transmitted via a facsimile(fax) machine will not be accepted.

Proposals submitted through the U.S.Postal Service must be received on orbefore 5 P.M. July 6, 2001. Proposalssubmitted through the U.S. PostalService should be sent to the followingaddress: Alaska Native-Serving andNative Hawaiian-Serving InstitutionsEducation Grants Program; c/o ProposalServices Unit; Office of ExtramuralPrograms; Cooperative State Research,Education, and Extension Service; U.S.Department of Agriculture; STOP 2245;1400 Independence Avenue, SW.,Washington, DC 20250–2245. Thetelephone number is (202) 401–5048.

T. Acknowledgment of Proposals

The receipt of all proposals will beacknowledged by e-mail, thereforeapplicants are encouraged to provide e-mail addresses, where designated, onthe Form CSREES–661. Theacknowledgment will contain anidentifying proposal number. Once yourproposal has been assigned a proposalnumber, please cite that number infuture correspondence. If the applicantdoes not receive an acknowledgmentwithin 60 days of the submissiondeadline, please contact the personlisted in the FOR FURTHER INFORMATIONsection of this notice.

U. Intent To Submit a Proposal

For the FY 2001 competition, FormCSREES–711, ‘‘Intent to Submit aProposal,’’ is NOT requested or requiredfor the Alaska Native-Serving andNative Hawaiian-Serving InstitutionsEducation Grants Program.



V. Applicable Regulations and OtherFederal Statutes

Several other Federal statutes andregulations apply to grant proposalsconsidered for review and to projectgrants awarded under this program.These include but are not limited to:7 CFR Part 1, subpart A—USDA

implementation of Freedom ofInformation Act

7 CRF Part 1b—USDA Implementationof the National Environmental PolicyAct

7 CFR Part 3—USDA implementation ofOMB Circular No. A–129 regardingdebt collection

7 CFR Part 15, subpart A—USDAimplementation of Title VI of the CivilRights Act of 1964

7 CFR Part 3015—USDA UniformFederal Assistance Regulations,implementing OMB directives (i.e.Circular Nos. A–21 and A–122) and

incorporating provisions of 31 U.S.C.6301–6308, as well as general policyrequirements applicable to recipientsof Departmental financial assistance

7 CFR Part 3017, as amended—USDAImplementation of GovernmentwideDebarment and Suspension(Nonprocurement) andGovernmentwide Requirements forDrug-Free Workplace (Grants)

7 CFR Part 3018—USDAImplementation of Restrictions onLobbying

7 CFR Part 3019—USDA UniformAdministrative Requirements forGrants and Agreements WithInstitutions of Higher Education,Hospitals, and Other NonprofitOrganizations

7 CFR Part 3052—USDAimplementation of OMB Circular No.A–133, Audits of States, LocalGovernments, and Other NonprofitOrganizations

29 U.S.C. 794 (section 504,Rehabilitation Act of 1973) and 7 CFRPart 15B (USDA implementation ofstatute)—prohibiting discriminationbased upon physical or mentalhandicap in Federally assistedprograms.

35 U.S.C. 200 et seq.—Bayh-Dole Act,controlling allocation of rights toinventions made by employees ofsmall business firms and domesticnonprofit organizations, includinguniversities, in Federally assistedprograms (implementing regulationsare contained in 37 CFR Part 401).

Done at Washington, DC, this 2nd day ofMay, 2001.

Colien Hefferan,Administrator, Cooperative State Research,Education, and Extension Service.[FR Doc. 01–11818 Filed 5–9–01; 8:45 am]



i

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Vol. 66, No. 91


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FEDERAL REGISTER PAGES AND DATE, MAY

21631–21850......................... 121851–22106......................... 222107–22424......................... 322425–22898......................... 422899–23134......................... 723135–23532......................... 823533–23830......................... 923831–24042.........................10

CFR PARTS AFFECTED DURING MAY

At the end of each month, the Office of the Federal Registerpublishes separately a List of CFR Sections Affected (LSA), whichlists parts and sections affected by documents published sincethe revision date of each title.

3 CFRProclamations:7430.................................221037431.................................224237432.................................235337433.................................235357434.................................23831Executive Orders:13183 (Amended by

EO 13209)....................2210513209...............................2210513210...............................22895

5 CFR1600.................................220881601.................................22092Proposed Rules:1604.................................21693

7 CFR930...................................218361240.................................218241309.................................238331410.................................220981779.................................231351780.................................231351980.................................23135Proposed Rules:29.....................................21888981...................................21888

9 CFR94.....................................22425362.......................21631, 22899381.......................21631, 22899

10 CFR9.......................................2290772.....................................23537490...................................218511044.................................23833Proposed Rules:50.....................................22134600...................................23197

11 CFR100...................................23537109...................................23537110...................................23537Proposed Rules:100...................................23628104...................................23628109...................................23628

12 CFR8.......................................23151552...................................23153Proposed Rules:552...................................23198951...................................23864

14 CFR

21.....................................23086

25 ............22426, 22428, 2308627.....................................2353829.....................................2353839 ...........21851, 21852, 21853,

21855, 21859, 22431, 22432,22908, 22910, 22913, 22915,23155, 23538, 23541, 23834,

23836, 23838, 2384065.....................................2354371 ...........21639, 23557, 23558,

2356091.........................23086, 2354397.........................22435, 22437105...................................23543119...................................23543121...................................23086125...................................23086129...................................23086382...................................22107Proposed Rules:23.....................................2319939 ...........21697, 21699, 21700,

21703, 21892, 21893, 21896,21898, 22478, 22479, 22482,

22484, 22486, 2363271.........................22489, 22490

15 CFR902...................................21639

16 CFR801...................................23561802...................................23561803...................................23561Proposed Rules:1700.................................22491

17 CFR

240...................................21648241...................................22916

19 CFR

102.......................21660, 23981132...................................21664163...................................21664Proposed Rules:4.......................................2170524.....................................21705101...................................21705

21 CFR

173...................................22921510 ..........22116, 22118, 23588520.......................22116, 23588522 ..........22116, 22118, 23588524...................................22116529...................................22116556...................................23589558 .........21861, 22116, 22118,

23588803...................................23155Proposed Rules:864...................................23634

VerDate 11-MAY-2000 19:53 May 09, 2001 Jkt 194001 PO 00000 Frm 00001 Fmt 4712 Sfmt 4712 E:\FR\FM\10MYCU.LOC pfrm04 PsN: 10MYCU

ii Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Reader Aids

23 CFR

630...................................23845Proposed Rules710...................................23636

24 CFR

Proposed Rules888...................................23770

25 CFR

11.....................................22118

26 CFR

1.......................................22286Proposed Rules:1...........................21844, 23868301...................................23868

27 CFR

9.......................................23589250...................................21667Proposed Rules:9.......................................21707

28 CFR

25.....................................22898

29 CFR

2202.................................21670

30 CFR

925...................................23593936...................................23605Proposed Rules:904...................................23868

33 CFR

100...................................23849117 .........21862, 23157, 23159,

23161, 23162, 23163, 23608,23610

164...................................21862165 .........21864, 21866, 21868,

21869, 22121, 23163

173...................................21671Proposed Rules:117.......................23638, 23640140...................................23871151...................................22137160...................................21710164...................................21899165...................................21715175...................................21717

37 CFRProposed Rules:1.......................................236422.......................................23642201...................................22139

38 CFR3 ..............21871, 23166, 2376317.....................................23326Proposed Rules:36.....................................23873


40 CFR52 ...........21675, 21875, 22123,

22125, 22922, 22924, 23612,23615, 23849

62.........................22927, 2385181.....................................22125180.......................22128, 22930261.......................21877, 236171611.................................23853Proposed Rules:52 ...........21721, 21727, 21901,

22140, 22141, 22970, 2364562.........................22970, 2388481.........................22141, 23646144...................................22971146...................................22971258...................................23652

41 CFR101–20.............................23169

101–21.............................23169102–85.............................23169302–11.............................23177Proposed Rules:Ch. 300 ............................22491Ch. 304 ............................22491

42 CFR

Proposed Rules:405...................................22646410...................................23984411...................................23984412...................................22646413.......................22646, 23984424...................................23984482...................................23984485...................................22646486...................................22646489...................................23984

44 CFR

64.....................................2293665.....................................22438206...................................22443Proposed Rules:62.........................23200, 23874

45 CFR

270...................................23854

46 CFR

205...................................23860Proposed Rules:67.....................................21902

47 CFR

20.....................................2244554.....................................2213364.....................................2244768.....................................2362573 ...........21679, 21680, 21681,

22448, 22449, 22450, 23861Proposed Rules:54.....................................2320473 ...........21727, 21728, 22498,

22499

48 CFR

Ch. 1 ................................220822.......................................2208237.....................................2208239.....................................22084Proposed Rules:9.......................................2313414.....................................2313415.....................................2313431.....................................2313452.....................................23134

49 CFR

1.......................................2318027.....................................22107Proposed Rules:26.....................................23208107...................................22080365...................................22371368...................................22328383...................................22499384...................................22499385...................................22415387...................................22328390...................................22499

50 CFR

17.........................22938, 23181216.......................22133, 22450600...................................22467648 .........21639, 22473, 23182,

23625660.......................22467, 23185679 .........21691, 21886, 21887,

23196Proposed Rules:17 ............22141, 22983, 22994622...................................22144635...................................22994660...................................23660


iiiFederal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Reader Aids

REMINDERSThe items in this list wereeditorially compiled as an aidto Federal Register users.Inclusion or exclusion fromthis list has no legalsignificance.

RULES GOING INTOEFFECT MAY 10, 2001

CHEMICAL SAFETY ANDHAZARD INVESTIGATIONBOARDTestimony by employees in

legal proceedings; published5-10-01

ENVIRONMENTALPROTECTION AGENCYAir pollution control:

Acid rain program—Permits rule revision;

industrial utility-unitsexemption removed;published 3-1-01

FEDERALCOMMUNICATIONSCOMMISSIONRadio and television

broadcasting:Experimental broadcast

stations; multipleownership rule eliminated;published 4-10-01

HEALTH AND HUMANSERVICES DEPARTMENTChildren and FamiliesAdministrationPersonal Responsibility and

Work OpportunityReconciliation Act of 1996;implementation:Temporary Assistance for

Needy FamiliesProgram—High performance bonus

awards to States;published 5-10-01

HEALTH AND HUMANSERVICES DEPARTMENTFood and DrugAdministrationMedical devices:

Cardiovascular devices—Reclassification of six

preamendments ClassIII devices into Class II;published 4-10-01

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Boeing; published 4-25-01Gulfstream; published 4-25-

01JanAero Devices; published

4-17-01

COMMENTS DUE NEXTWEEK

AGRICULTUREDEPARTMENTAnimal and Plant HealthInspection ServiceExportation and importation of

animals and animalproducts:Rinderpest and foot-and-

mouth disease; diseasestatus change—Great Britain and Northern

Ireland; comments dueby 5-14-01; published3-14-01

Great Britain and NorthernIreland; correction;comments due by 5-14-01; published 4-6-01

AGRICULTUREDEPARTMENTCommodity CreditCorporationConservation Reserve

Program:Good faith reliance and

excessive rainfall;comments due by 5-14-01; published 3-15-01

COMMERCE DEPARTMENTNational Oceanic andAtmospheric AdministrationFishery conservation and

management:Atlantic highly migratory

species—Atlantic bluefin tuna;

comments due by 5-14-01; published 4-2-01

Magnuson-Stevens Actprovisions—Domestic fisheries;

exempted fishingpermits; comments dueby 5-15-01; published4-30-01

Northeastern United Statesfisheries—Tilefish; comments due by

5-18-01; published 4-3-01

West Coast States andWestern Pacificfisheries—Coastal pelagic species;


Marine mammals:Incidental taking—

Naval activities;surveillance towed arraysensor system lowfrequency active sonar;incidental harassment;comments due by 5-18-01; published 4-16-01

ENVIRONMENTALPROTECTION AGENCYAir quality implementation

plans; approval and

promulgation; variousStates:California; comments due by

5-14-01; published 3-30-01

Idaho; comments due by 5-14-01; published 4-12-01

Ohio; comments due by 5-17-01; published 4-17-01

Pennsylvania; commentsdue by 5-17-01; published4-17-01

Hazardous waste:Project XL program; site-

specific projects—Buncombe County

Landfill, Alexander, NC;comments due by 5-16-01; published 4-16-01

Water pollution control:National pollutant discharge

elimination system(NPDES)—Concentrated animal

feeding operations;guidelines andstandards; commentsdue by 5-14-01;published 1-12-01

FEDERALCOMMUNICATIONSCOMMISSIONCommon carrier services:

Wireless telecommunicationsservices—698-746 MHz spectrum

band (televisionchannels 52-59);reallocation and servicerules; comments due by5-14-01; published 4-13-01

Radio stations; table ofassignments:New Mexico; comments due

by 5-14-01; published 4-4-01

NATIONAL CREDIT UNIONADMINISTRATIONCredit unions:

Regulatory FlexibilityProgram; comments dueby 5-14-01; published 3-15-01

PERSONNEL MANAGEMENTOFFICEStudent loans; repayment by

Federal agencies; commentsdue by 5-15-01; published3-16-01

STATE DEPARTMENTVisas; immigrant

documentation:International broadcasters;

employment-based specialimmigrant classification;comments due by 5-18-01; published 3-19-01

TRANSPORTATIONDEPARTMENTCoast GuardDrawbridge operations:

Louisiana; comments due by5-18-01; published 3-19-01

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Aerospatiale; comments dueby 5-14-01; published 4-12-01

Bell; comments due by 5-14-01; published 3-14-01

BMW Rolls-Royce GmbH;comments due by 5-14-01; published 3-14-01

Boeing; comments due by5-14-01; published 3-29-01

Bombardier; comments dueby 5-14-01; published 4-12-01

Cessna; comments due by5-18-01; published 3-30-01

Dassault; comments due by5-17-01; published 4-17-01

Pratt & Whitney; commentsdue by 5-14-01; published3-15-01

Raytheon; comments due by5-14-01; published 3-29-01

Airworthiness standards:Special conditions—

Cessna Aircraft Co. Model500, 550, S550, and560 series airplanes;comments due by 5-18-01; published 4-18-01

Class D airspace; commentsdue by 5-18-01; published4-18-01

Class E airspace; commentsdue by 5-18-01; published4-18-01

TREASURY DEPARTMENTInternal Revenue ServiceExcise taxes:

Deposits and tax returns;comments due by 5-17-01; published 2-16-01

Income taxes, etc.:Electronic payee statements;


Income taxes:Income for trust purposes;

definition; comments dueby 5-18-01; published 2-15-01

Mid-contract change intaxpayer; comments dueby 5-17-01; published 2-16-01

Procedure and administration:Census Bureau; return

information disclosure;cross-reference;


iv Federal Register / Vol. 66, No. 91 / Thursday, May 10, 2001 / Reader Aids


Return of property in certaincases; comments due by5-15-01; published 2-14-01

TREASURY DEPARTMENTThrift Supervision OfficeCapital; qualifying mortgage

loan, interest rate riskcomponent, andmiscellaneous changes;comments due by 5-14-01;published 3-15-01

Liquidity; CFR part removedand conformingamendments; comments dueby 5-14-01; published 3-15-01

LIST OF PUBLIC LAWS

This is a continuing list ofpublic bills from the current

session of Congress whichhave become Federal laws. Itmay be used in conjunctionwith ‘‘P L U S’’ (Public LawsUpdate Service) on 202–523–6641. This list is alsoavailable online at http://www.nara.gov/fedreg.

The text of laws is notpublished in the FederalRegister but may be orderedin ‘‘slip law’’ (individualpamphlet) form from theSuperintendent of Documents,U.S. Government PrintingOffice, Washington, DC 20402(phone, 202–512–1808). Thetext will also be madeavailable on the Internet fromGPO Access at http://www.access.gpo.gov/nara/index.html. Some laws maynot yet be available.

H.R. 132/P.L. 107–6

To designate the facility of theUnited States Postal Servicelocated at 620 JacarandaStreet in Lanai City, Hawaii,as the ‘‘Goro Hokama PostOffice Building’’. (Apr. 12,2001; 115 Stat. 8)

H.R. 395/P.L. 107–7

To designate the facility of theUnited States Postal Servicelocated at 2305 Minton Roadin West Melbourne, Florida, asthe ‘‘Ronald W. Reagan PostOffice of West Melbourne,Florida’’. (Apr. 12, 2001; 115Stat. 9)

Last List March 21, 2001

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