Federal Register: 43 Fed. Reg. 8247 (Mar. 1, 1978). - Loc

WEDNESDAY, MARCH 1, 1978Vol. 43-No. 413-1-78PAGES8247-8504

== - highlightsSUNSHINE ACT MEETINGS ... ...... ..... 8343

- - jo,*,=

=n

INDOCHINESE REFUGEESPresidential determination authoizing financial assistance

LATIN AMERICAN REFUGEESPresidential determination authorizing financial assistance -

CONGRESSIONAL SPACE MEDAL OFHONORNASA proposes procedures for the nomination of an astronautto receive award; comments by 4-1-78.

LOW INCOME HOUSINGHUD estabrshes direct loan program for housing for theelderly or handicapped; effective 3-30-78 (Part VI of thisissue)COMMUNITY DEVELOPMENT BLOCKGRANTSHUD Issues fina rules governing erigible activities; effectrie3-1-78 (Part Ill of this issue)HUD Issues ru!es governing appr.cations for enttementgrants; effective 3-1-78 (Part IV of tls Issue)HUD prescribes mechan'sms for dirscetionary.dlt ruton ef-fective 3-1-78 (Part V of this Issue)

RURAL HEALTH CLINIC SERVICESHEW/HCFA set forth conditions for coverage and reimburse-ment under the Medicare progran; effective 3-1-78; com-ments by 3-31-78

HEALTH SPASFTC schedules additional hearings on proposed trade regu!a-tion rule, 3-13 and 3-14-78

PROVISION OF PESTICIDES TO LIBERIAState/AID Intends to waive certain requirements; commentsby 3-21-78

COASTAL ZONE MANAGEMENTCommerce/NOAA publishes interim final reguaton on devel-opmont and approval of programs; effective 4-1-78 (Part II ofths Issue)

WATER MANAGEMENTUSDA/SCS Issues final guldelines for use of channel rnodfica-tion; effective 3-1-78UNCOATED FREE SHEET OFFSET PAPERFROM CANADAIo nttes inquiy and hearing

CONTINUE INSIDE

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8476

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8268

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8252

8306

I I I I

AGENCY PUBLICATION ON ASSIGNED DAYS OF THE WEEKThe following agencies have agreed topublish all documents on two assigned days of the week (Monday/

Thursday or Tuesday/Friday). This is a voluntary program. (See OFR notice 41 FR 32914, August 6, 1976.)

Monday Tuesday Wednesday Thursday Friday

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DOT/NHTSA USDA/APHIS DOT/NHTSA USDA/APHIS

DOT/FAA USDA/FNS DOT/FAA USDA/FNS

DOT/OHMO USDA/FSQS DOT/OHMO USDA/FSQS

DOT/OPSO USDA/REA DOT/OPSO USDA/REA

CSC CSC

LABOR LABOR

HEW/ADAMHA HEW/ADAMHA

HEW/CDC HEW/CDC

HEW/FDA HEW/FDA

HEW/HRA HEW/HRA

HEW/HSA HEW/HSA

HEW/NIH HEW/NIH

HEW/PHS HEW/PHS

Documents normally scheduled for publication on a day that will be a Federal holiday will be published thenext work day following the holiday.

- Comments on this program are still invited. Comments should be submitted to the Day-of-the.Week ProgramCoordinator, Office of the Federal Register, National Archives and Records Service, General Services Adminis.tration, Washington, D.C. 20408.

ATTENTION: For questions, corrections, or requests for-information please see the list of telephone numbersappearing on opposite page.

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Q -

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Q

A Published daily, Monday through Friday (no publication on Saturdays, Sundays, or on official Federalholidays), by the Ofice of the Federal Register, National Archives and Records Service, General ServicesAdministration, Washington, D.C. 20408, under the Federal Register Act (49 Stat. 500, as amended: 44 U.S.C.

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The FEDERAL REGISTER provides a uniform system for making available to the public regulations and legal notices Issuedby Federal agencies. These include Presidential proclamations and Executive orders and Federal agency documents havinggeneral applicability and legal effect, documents required to be published by Act of Congress and other Federal agencydocuments of public interest. Documents are on file for public inspection In the Office of the Federal Register the day beforothey are published, unless earlier filing is requested by the Issuing agency.

The FEDERAL REGISTER will be furnished by mail to subscribers, free of postage, for 85.00 per month or $50 per year, payablein advance. The charge for Individual copies Is 75 cents for each issue, or 75 cents for each group of pages as actually bound.Remit check or money order, made payable to the Superintendent of Documents, US. Government Printing Office, Washington.D.C. 20402.

There are no restrictions on the republication of material appearing In the FmEDaL REGISTZE.

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978

INFORMATION AND ASSISTANCEQuestions and requests for specific information may be directed to the following numbers. General inquiries

may be made by dialing 202-523-5240.

FEDERAL REGISTER, Daily Issue:Subscription orders (GPO) ............Subscription problems (GPO) ........"Dial -a - Regulation" (recorded

summary of highlighted docu-ments appearing in next day'sissue).

Scheduling of documents forpublication.

Copies of documents appearing inthe Federal Register.

Corrections ..................................Public Inspection Desk ..................Finding Aids....................

Public Briefings: "How To Use the-Federal Register."

Code of Federal Regulations (CFR)..

Finding Aids -............................

202-783-3238202-275-3050202-523-5022

523-3187

523-5240

523-5237523-5215523-5227523-3517

523-3419523-3517523-5227

PRESIDENTIAL PAPERS:Executive Orders and Proclama-

tions.Weekly Compilation of Presidential

Documents.Public Papers of the Presidents....Index ..............................

PUBUC LAWS:Public Law dates and numbers....

Slip Laws ..............................

U.S. Statutes at Large ............

Index ... ...................... .

6.S. Government Manual ..............Automation.Special Projects ...............

HIGHLIGHTS-ContinuedSAVINGS AND LOAN ASSOCIATIONSFHLBB publishes accounting bulletin; effective 1-1-78._......

MEETINGS--DOD/AF: Community College of the Air Force AdvisoryCommittee, 3-28-78 .... ... ... .... .. .. . .......................... .

USAF Scientific Advisory Board, 3-14, 3-16, and3-17-78 ................. .................... ........... .

EPA: Federal Insecticide, Fungicide, and Rodenticide ActScientific Advisory Panel, 3-17 and 3-18-78 ...................

HUD/Secy: Report Development of Energy PerformanceStandards for New Construction, 3-16-78 .............-

Treasury/IRS: Commissioner's Advisory Group, 3-14 and3-15-78.. ...... .. ............... .................

8295

8284

8285

8292

8301

8322

HEARINGS-Commerce/NOAA. Mid.Atlantic Fishery Management Coun-

cil, 3-7,3-9, and 3-10-78

SEPARATE PARTS OF THIS ISSUEPart II, CommercelNOAA-..............Part Ill. HUD/CPDPart IV, HUDCPD. .Part V, HUDICPDPart VI, HUD .Part VII. OMB

.FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MA.ICH 1, 1978

523-5286

523-5284

523-5285523-5285

523-5266523-5282523-5266523-5282523-5266523-5282523-5266523-5282523-5287523-5240523-4534

8283

837884348450847684928500

contentsTHE PRESIDENT

MemorandumsIndochinese refugees; financial

assistance ....................................Latin American refugees; finan-

cial assistance ............................

EXECUTIVE AGENCIES

AGENCY FOR INTERNATIONALDEVELOPMENT

NoticesAuthority delegations:

Egypt, Mission Director, etal.;transfer of funds, etc. (2 doc-um ents) ...................................

Pest management program; in-terim procedures, etc.:

Liberia; waiver ..........................

AGRICULTURE DEPARTMENT

See also Sol Conservation Serv-ice.

RulesAuthority delegations by Sec-

retary and General Officers:Assistant Secretary for Con-

servation, Research, andEducation, et al.; water pol-lution control contracts ........

AIR FORCE DEPARTMENTNoticesMeetings:

Community College AdvisoryCommittee ..............................

Scientific Advisory Board (2documents) .............................

ALCOHOL, TOBACCO AND FIREARMSBUREAU

Proposed RulesUnla;ful trade practices;

extension of time ......................ARMY DEPARTMENT

See Engineers Corps.

CIVIL AERONAUTICS BOARDRulesPractice and procedure, eco-

nomic proceedings:Continuances and extensions

of time; authority trans-ferred to Board Secretary ...

Proposed RulesCharters:

Flight delays and substituteair transportation .................

Free and reduced rate transpor-tation:

Handicapped and retired per-sons; definitions for farepurposes ..................................

8247

8249

8321

8320

NoticesHearings, etc.:

Pan American World Airways,Inc . ......................

REA Express, Inc ......................

CIVIL SERVICE COMMISSIONRulesExcepted service:

Department of Energy .............

COMMERCE DEPARTMENT

See also Economic DevelopmentAdministration; National Oce-anic and Atmospheric Admin-istration; National TechnicalInformation Service.

RulesConsumer product information

labeling program, voluntary:Performance dharacteristics

labeling ...................................

COMMUNITY PLANNING ANDDEVELOPMENT, OFFICE OF ASSIS"SECRETARY

RulesCommunity development block

grants:Eligible activities .......................Entitlement grants ...................

8252 Small cities program ................

DEFENSE DEPARTMENTSee also Air Force Department;

Engineers Corps; Navy De-*partment.

8284 Proposed RulesRecords; user charges ..................

8285 DRUG ENFORCEMENTADMINISTRATION

NoticesSchedules of controlled sub-

stances; production quotas:

8270 Phenmetrazine; correction ......ECONOMIC DEVELOPMENT

ADMINISTRATIONRulesEconomic development and ad-

justment assistance grantsand financial assistance re-quirements; editorial changes,etc ............................................

EDUCATION OFFICE8254 Notices

Applications and proposals, clos-ing dates:

Emergency Sbhool Aid Act,8266 extension .................................

ENERGY DEPARTMENTSee Federal Energy Regulatory

Commission; Southeastern8266 Power Administration.

ENGINEERS CORPSRules

8280 Administrative procedures:8280 Hydroelectric power oper-ations, coordination with

power marketing agencies....

ENVIRONMENTAL PROTECTIONAGENCY

8251 Notices

Meetings:FIFRA Scientific Advisory

P anel .......................................Pesticide applicator certifica-

tion and interim certifica-tion; State plans:

South Carolina ...... ............Pesticide registration:

Applications (2 documents) ....Pesticides; tolerances, registra-

tion, etc.:8254 Glyphosate .................................

FEDERAL COMMUNICATIONSTANT COMMISSION

Proposed RulesCable television:

Saturated systems; regulatoryrelief from mandatory sig-

8324 nal carriage requirements;8450 extension of time ..................8476 FM broadcast stations; table of

assignments:Ohio ........................W isconsin ...................................

NoticesSatellite communications serv-

ices; applications accepted for8271 filing ...........................................

FEDERAL ENERGY REGULATORYCOMMISSION

Proposed RulesPolicy and interpretations:

8307 Natural gas companies, cur-tailment plans; compensa-tion provisions; extension oftim e ..........................................

NoticesHearings, etc.:

Alabama Power Co ...................Boston Edison Co ...........Central Hudson Gas & Elec-

8252 tric Corp .................................Duke Power Co. (2 docu-

m ents) ......................................Iowa Power & Light Co ...........Jersey Central Power & Light

Co .......................Mississippi Power & Light

8300 Co ............................................Mt. Carmel Public Utility

Co ....... ... ...............Northwest Pipeline Corp ........Pennsylvania-New Jersey-

Maryland Interconnection...


8257

8292

8294

8293

8292

8275

82738274

8294

8270

8287

8287

8287

82878288

8288

8288

82888289

8290

Southern Natural Gas Co .......Trunkline Gas Co .........Tucson Gas & Electric Co.Union Electric Co ...............Vigilante Electric Coopera-

tive, Inc ...................

FEDERAL HOME LOAN BANK BOARDNoticesAccounting bulletin; publica-

tion ...................

FEDERAL MARITIME COMMISSIONNoticesAgreemeits riled, etc ...................Freight forwarder licenses:

Avery & Taylor Import-Ex-port Services, Inc ..................

Cortina, Joseph ...............Oil pollution; certificates of fi-

nancial responsibility (2 docu-m ents) .........................................

FEDERAL REGISTER OFFICERulesCFR checklist; 1977 issuances...

FEDERAL TRADE COMMISSIONProposed RulesHealth spas; hearings .......

FISCAL SERVICENoticesSurety companies acceptable on

Federal bonds:Fritz Insurance Co ....................

FISH AND WILDLIFE SERVICENoticesChannel modification in water

resource projects; guidelines...Endangered and threatened spe-

cies permits; applications (10documents) .......................... 8302

Endangered and threatened spe-cies permits; applications; cor-rection ........................................

GENERAL ACCOUNTING OFFICENoticesRegulatory reports review;, pro-

posals, approvals, etc. (CABand ICC) (2 documents) ..........

GENERAL SERVICES ADMINISTRATIC

See Federal Register Office.

HEALTH, EDUCATION, AND WELFARIDEPARTMENT

See Education Office; HealthCare Financing Administra-tion.

HEALTH CARE FINANCING

ADMINISTRATION

RulesAged and disabled, health insur-

ance for.Rural health clinic services .....

CONTENTS

8290 HOUSING AND URBAN DEVELOPMEN'8291 DEPARTMENT8290 See also Community Planning8291 and Development, Office of

8291 Assistant Secretary.RulesConduct standards; nondiscrim-

ination .........................................Low income housing.

8295 Elderly and* handicapped,loans.. . ....... ......

NoticesMeetings:

8297 Energy performance stand.ards for new construction...

8297 INTERIOR DEPARTMENT8299 See also Fish and Wildlife Serv-

ice.Proposed Rules

8298 Property management:Relocation assistance, uni-

form and real property ac-quisition policies ....................

8251 Notices

Grazing fees; establishment ......

INTERNAL REVENUE SERVICE8268 Notices

Meetings:Commissioner's Advisory

Group ................................... 8322

INTERNATIONAL TRADE COMMISSION

8322 NoticesImport investigations:

Doxycycline .............................. 8306Food slicers ...... . .. 8305Leather apparel from Uru-

8301 guay .... ............... ............... 8306Locks, certain combination... 8305Paper, offset printing, from

-8303 Canada .................................. 8306Pressure pads, alternating ...... 8304Sandals, flexible foam .............. 8305

8301 Steel pipe and tube, weldedstainless . ........... 8304

Telescopic sight mounts ........ 8305

INTERSTATE COMMERCE COMMISSIONNoticesHearing assignments ................... 8323

8300 Motor carriers:Irregular route property carrl-

IN ers; gateway elimination ...... 8323

JUSTICE DEPARTMENT

See also Drug Enforcement Ad-ministration.

RulesOrganization, functions, and au-

thority delegations:Assistant Attorney General,

Antitrust Division; energypolicy and conservation ........ 8256

LEGAL SERVICES CORPORATIONNoticesGrants and contracts; applica-

8258 tions (4 documents) ................. 8307

r MANAGEMENT AND BUDGET OFFICE

NoticesBudget deferrals ......................... 8500Clearance of reports; list of re-

quests . . . . . . . . . ............. 8308

NATIONAL AERONAUTICS AND SPACE8255 ADMINISTRATION

Proposed RulesSpace medal of honor, nomina-

8492 tion procedures ......................- 8267

NATIONAL ARCHIVES AND RECORDSSERVICE

8301 See Federal Register Office.

NATIONAL OCEANIC ANDATMOSPHERIC ADMINISTRATION

RulesCoastal zone management pro-

grams:Development and approval of

programs ..................8272 Notices

Fishery conservation and man-8303 agement, closures:

Cod (2 documents)New England Groundfish

Marine mammal permit applica-tions, etc.:

Demetrius, Michael BSurf clam fishing day designa-

tion and change, hearings-_

8278

82828283

8283

8283

NATIONAL TECHNICAL INFORMATIONSERVICE

NoticesInventions, Government-owned;

availability for licensing 8284

NAVY DEPARTMENT

RulesU.S.S. Cincinnati; compliance

with COLREGS ...... 8256

NUCLEAR REGULATORY COMMISSION

NoticesEnvironmental statements;,

availability, etc.:Houston Lighting & Power

Co ................ 8307Applications, etc.:

New York State Electric &Gas Corp. eta ...... 8308

SECURIES AND EXCHANGECOMMISSION

Proposed RulesSecurities M-change Act:

Depository participant disclo-sure and information avail-ability to qualified issuersand non-Issuers ....................

NoticesSelf-regulatory organizations;

proposed rule changes:American Stock Exchange,

Inc ......-. ...... o..........__

8269

8311


CONTENTS

Hearings, etc,,American Medical Association

et al .......................................... 8309Connecticut Light & Power

Co ............................................. 8311Country Kitchen Internation-

al, Inc ..................................... 8312Massachusetts Mutual Life In-

surance Co. et al. (2 docu-ments) ............................... 8312, 8313

Scudder Development Fund etal .............................................. 8315

Sentry Funds, Inc., et al ......... 8316Vance, Sanders Municipal.

Bond Fund, Ltd., et al .......... 8317

SOIL CONSERVATION SERVICE

Notices

Channel modification in waterresource projects; guidelines... 8276

Environmental statements onwatershed projects; avail-ability, etc.:

Cadron Creek Watersheds;Ark ..................... 8276

SOUTHEASTERN POWER

ADMINISTRATION

Notices

Marketing policy; public partici-pation procedure; inquiry ........

STATE DEPARTMENT

See Agency for InternationalDevelopment.

TRANSPORTATION DEPARTMENT

See Urban Mass TransportationAdministration.

8285

TREASURY DEPARTMENTSee also Alcohol, Tobacco and

Firearms Bureau; Fiscal Serv-ice; Internal Revenue Serv-ice.

NoticesNotes, Treasury:

G -1982 .....................................Security import investigations:

Nuts, bolts, and screws .............

URBAN MASS TRANSPORTATIONADMINISTRATION

NoticesRail transit equipment procure-

ment contracts, guidelines;availability .................................

VETERANS ADMINISTRATIONRulesProcurement; architect-engi-

neer evaluation boards .............


8323

8322

8321

8258

list of cfr parts affected in this issueThe following numerical guide is a list of the parts of each title of the Code of Federal ReCulatlons affected by documents published in today's

issue. A cumulative list of parts affected, covering the current month to date, follows beginning with the second Issue of the month.A Cumulative List of CFR Sections Affected Is published separately at the end of each month. The guide lists the parts and sections affected

by documents published since the revision date of each title.

1 CFR

Ch. I ........... ............

3 CFRMm on -ms:

February 13, 1978......February 15, 1978 ........................

5 CFR

213 ..... ........................................

7 CFR -2 °.°o.....°............,.......

13 CFR

308 ..........309. ... .... ...

14 CFR

302 ..........................

PROPOSED RULES:207 ...........................................

- 208 ............................................212 . ...............214 ...........................................223 ........................................1221 ..................... .......

15 CFR 28 CFR

8251 16 .............. 8254 0 ..........923 ................................................... 8378

- 16 CFR

8247 PoPosED RULES:8249 443 ............................................

17 CFR8251 PROPOSED RULES:

240 ............................................

8252 1S CFR

PROPOSED RULES:8252 2 ................................................8252 154 ............................................

24 CFR8254 0 .......................................................

570 (3 documents) ....... 8434, 8450,009 885 ................ . . . . .........

82668266826682668267

27 CFR

PROPosED RULES:6 ................................................ 82708 ................................................ 8270

32 CFR

706 ..........................

8268 PROPOSED RULES:288 .......... ............

33 CFR8269 209 ..............................................

41 CFR

8270 8-4 ..........................8270 PRoPosED ROLES:

114-150 ...........................

8255 42 CFR84768492 405 ..........................

47 CFR

PROPOSED RULES:

73 (2 documents) ............ 8273, 827476 ................. - 8275

FEDERAL REGISTER PAGES AND DATES-MARCHPam Dale

8247-8504 ................................... Moa.1

FEDERAL REGISTER, VOL 43. NO. 41-WEDNESDAY, MAR04 1, 1978

8256

8256

8271

8257

8258

8272

8258

FEDERAL REGISTER

Table of Effective Dates and Time Periods-March 1978

This table Is for use In computing dates certain in connection with documents which are published In theFEDEAL REGISTER subject to advance notice requirements or which impose time limits on public response.

Federal Agencies using this table in calculating time requirements for submissions must allow sufficient extratime for FEDERAL REGISTER scheduling procedures.

In computing dates certain, the day after publication counts as one. All ucceeding days are counted except thatwhen a date certain falls on a weekend or holiday, it is moved forward to th4 next Federal business day. (See 1 CFR18.17)

A new table will be published monthly in the first issue of each month.

Dates of FR 15 days after 30 days after 45 days after 60 days after 90 days afterpublication publication publication publication publication publication

March 1 March 16 March 31 April 17 eMay 1 May 30March 2 March 17 April 3 April 17 May 1 May 31March 3 March 20 April 3 April 17 May 2 June 1March 6 March 21 April 5 April 20 May 5 . June 5March 7 March 22 April 6 April 21 May 8 June 5March 8 March 23 , April 7 April 24 May 8 June 6March 9 March 24 April 10 April 24 May 8 June 7March 10 March 27 April 10 April 24 May 9 June 8March 13 March 28 April 12 April 27 May 12 June 12March 14 March 29 April 13 April 28 May 15 June 12March 15 March 30 April 14 May 1 May 15 June 13March 16 March 31 April 17 May 1 May 15 June 14March 17 April 3 April 17 May 1 May 16 June 15March 20 April 4 April 19 May 4 May 19 June 19March 21 April 5 April 20 May 5 \ May 22 June 19March 22 April 6 April 21 May 8 May 22 June 20March 23 April 7 April 24 May 8 May 22 June 21March 24 April 10 April 24 May 8 May 23 June 22March 27 April 11 April 26 May 11 May 26 June 26March 28 April 12 April 27 May 12 May 30 June 26March 29 April 13 April 28 May 15 May 30 June 27March 30 April 14 May 1 May 15 May 30 June 28March 31 April 17 May 1 May 15 May 30 June 29

I AGENCY ABBREVIATIONS USED IN HIGHLIGHTS AND REMINDERS(This List Will Be Published Monthly In First Issue Of Month.)

USDA-AGRICULTURE DEPARTMENTAMS-Agricultural Marketing ServiceARS-Agricultural Research ServiceASCS-Agricultural Stabilization and

Conservation ServiceAPHIS-Animal and Plant Health In-.

spection ServiceCCC-Commodity.Credit CorporationCEA-Commodity Exchange AuthorityCSRS-Cooperatlve State Research

ServiceEMS-Export Marketing ServiceERS-Economic Research ServiceFmHA-Farmers Home Administra-

tionFCIC-Federal Crop Insurance Corpo-

rationFAS-Foreign Agricultural ServiceFNS-Food and Nutrition ServiceFSQS-Food Safety and Quality Serv-

iceFS-Forest ServicePSA-Packers and Stockyards Admin-

istration

RDS-Rural Development ServiceREA-Rural Electrification Adminis-

trationRTB-Rural Telephone BankSCS-Soil Conservation Service

COMMERCE-COMMERCE DEPARTMENT

Census-Census BureauEDA-Economic Development Admin-

istrationITA-Industry and Trade Administra-

tionMA-Maritime AdministrationMBE-Minority Business Enterprise

OfficeNBS-National Bureau of StandardsNFPCA-National Fire Prevention and

Control AdministrationNOAA-Nattonal Oceanic and Atmo-

spheric AdministrationNSA-National Shipping AuthorityNTIS-National Technical Informa-

tion Service

PTO-Patent and Trademark OfficeUSTS-United States Travel Service

DOD-DEFENSE DEPARTMENT

AF-Air Force DepartmentArmy-Army DepartmentDCPA-Defense Civil PreparednessAgency

DIA-Defense Intelligence AgencyDLA-Defense Logistics AgencyEngineers-Engineers CorpsNavy-Navy Department

DOE-ENERGY DEPARTMENT

BPA-Bonneville Power Administra-tion

ERA-Economic Regulatory Adminis-tration

EIA-Ene~gy Information Administra-tion

ERO-Energy Research OfficeETO-Energy Technology OfficeFERC-Federal Energy Regulatory

Commission

FEDERAL REGISTER, VOL 43, NO. 41--.WIDNSDAY, MARCH i, 1978

HEW-HEALTH, EDUCATION, ANDWELFARE DEPARTMENT

ADAA-Alcohol, Drug Abuse, andMental Health Administration

CDC-Center for Disease ControlFDA-Food and Drug AdministrationHCFA-Health Care Financing Admin-

istrationEDSO-Human Development Services

OfficeHRA-Health Resources Administra-

tionHSA-Health Services AdministrationNIH-National Institutes of HealthOE-Office of EducationPHS-Public Health ServiceRSA-Rehabilitation Services Admin-

istrationSSA-Social Security Administration

HUD-HOUSING AND URBANDEVELOPMENT DEPARTMENT

CARP-Consumer Affairs and Regula-tory Functions, Office of AssistantSecretary

CPD--Community Planning and Devel--opifient, Office of Assistant Secretary

FDAA-Federal Disaster AssistanceAdministration-

FHEO-Fair Housing and 'Equal Op-portunity, Office of Assistant Secre-tary

FHC-Federal Housing Commissioner,Office of Assistant Secretary forHousing

FIA-Federal Insurance Administra-tion

GNMA-'Government National Mort-gage Association

ISRO-Interstate Land Sales Regis-tration Office

NCA-New Communities Adnistra-tion

NCDC-New Community Developin~ntCorporation

NVACP-Neighborhoods Voluntary As-sociations and Consumer Protection,Office of Assistant Secretary

INTERIOR-INTERIOR DEPARTMENTBIA-Bureau of Indian AffairsBLM-Bureau of Land ManagementFWS-Fish and Wfidlife ServiceGS--Geological SurveyHCRS-Heritage Conservation and

Recreation ServiceMESA-Mining Enforcement and Safe-

ty AdministrationMines-Mines BureauNPS-National Park ServiceOHA-Office of Hearings and AppealsReclamation-Reclamation BureauSMRE-Surface Mining Reclamation

and Enforcement OfficeJUSTICE-JUSTICE DEPARTMENT

DEA-Drug Enforcement Arministra-tion /

INS-Immigration and NaturalizationService

LEAA-Law Enforcement AssistanceAdministration

NIC-National Institute of CorrectionsLABOR--ABOR DEPARTMENT

BIS-Bureau of Labor Statistics

FEDERAL REGISTER

BRB--Benefits Review BoardESA-Employment Standards Admin-

istrationETA-Employment and Training Ad-

ministrationFCCPO-Federal Contract Compliance

Programs OfficeLMSEO-Labor Management Stand-

ards Enforcement OfficeOSHA--Occupatlonal Safety and

Health AdministrationP&W7BP-Penslon and Welfare Benefit

ProgramsW&H-Wage and Hour Division

STATE--STATE DEPARTMENTAID-Agency for International Devel-

opmentFSGB-Foreign Service Grievance

Board ,DOT-TRANSPORTATION DEPARTMENT

CG-Coast GuardFAA-Federal Aviation AdministrationFHWA-Federal Highway Administra-

tionFRA-Federal Railroad Adminitra-

tionMTB-Materlals Transportation Bu-

reauNHTSA-National Highway Traffic

Safety AdministrationOHMO-Offlce of Hazardous Materials

OperationsOPSO-Office of Pipeline Safety Oper-

ationsSLS-Salnt Lawrence Seaway Develop-

ment CorporationUMTA-Urban Mass Transportation

AdmlsnitrationTREASURY-TREASURY DEPARTMENT

ATF-Alcohol, Tobacco and FirearmsBureau

Customs--Customs ServiceComptroller--Comptroller of the Cur-

rencyESO-Economic Stabilization Office

(temporary)FS-Fiscal ServiceIRS-Internal Revenue Service.Mint-Mint BureauPDB-Public Debt BureauRSO-Revenue Sharing Office

INDEPENDENT AGENCIESATBCB-Architectural and Transpor-

tation Barriers Compliance BoardCAB-Civil Aeronautics BoardCASB-Cost Accounting Standards

BoardCEQ-Councl on Environmental Qual-

ityCFTC-Commodity Futures Trading

CommissionCITA-Textile Agreements Implemen-

tation CommitteeCPSC-Consumer Product Safety

CommissionCRC-Civil Rights ComissionCSA-Community Services Adminis-

trationCSC-Civil Service CommissionCSC/FPRAC-Federal Prevailing Rate

Advisory CommitteeEEOC-Equal Employment Opportuni-

ty Commission

EXIMBANK-Export-Import Bank ofthe U.S.

EPA-Environmental Protection Agen-cy

ESSA-Endangered Species ScientificAuthority

ERDA-Energy Research and Develop-ment Administration

FCC-Federal Communications Com-mion

FCSC-Foreign Claims SettlementCommission

FDIC-Federal Deposit Insurance Corrporation

FEA-Fedra1 Energy AdministrationFEC-Federal Election CommissionFBMBB-Pederal Home Loan Bank

BoardFMC-Federal Maritime CommissionFPC-Federal Power CommissionFRS-Federal Reserve SystemFTC-Federal Trade CommissionGSA-General Services AdministrationGSA/ADTS-Automated Data and

Telecommunications ServiceGSA/FPA-Federal PreparednessI AgencyGSA/FSS-Federal Supply ServiceGSA/NARS-Natlonal Archives and

Records ServiceGSA/PBS-Public Buildings ServiceICC-Interstate Commerce Commis-

sionICP-Interm Compliance Panel (Coal

Mine Health and Safety)ITC-International Trade CommissionLSC-Legal Services CorporationNACEO-National Advisory Council on

Economic OpportunityNASA-National Aeronautics and

Space AdministrationNCUA-National Credit Union Admin-

istrationNFAH/NEA-National Endowment for

the ArtsNFAH/NEH-National Endowment for

the HumanitiesNLRB-National Labor Relations

BoardNRC-Nuclear Regulatory CommissionNSF-National Science FoundationNTSB-National Transportation -Safe-

ty BoardOFR-Offlce of the Federal RegisterOMB-OffIce of Management and

BudgetOPIC-Overseas Private Investment

CorporationPADC-Pennsylvania Avenue Develop-

ment CorporationPRC-Postal Rate CommissionPS-Postal ServiceRB-Renegotiation BoardRRB-Railroad Retirement BoardROAP-Reorganization, Office of As-

sistant to PresidentSEA-Small Business AdministrationSEC-Securities and Exchange Com-

missionTVA-Tennessee Valley AuthorityUSIA-United States Information

AgencyVA-Veterans AdministrationWRC-Water Resources Council

FEDERAL REGISTEI, VOL 43, NO. 41-WEDHESDAY, MARCH 1, 1978

reminders(The Items in this list were editorially compiled as an aid to FEDERAL REGISTER users. Inclusion or exclusion from this list has no legal

significance. Since this list is Intended as a reminder, It does not include effective dates that occur within 14 days of publication.)

Rules Going Into Effect Today

DOE/FERC-Mandatory petroleum price regu-lations; timing of computation of landedcosts ........................................ 5799; 2-10-78

FCC-Amateur Radio Service; deletion of"grandfather" privilege to upgrade to Ama-teur Extra Class ................. 44991; 9-8-77

Radio-and television broadcasting; reregula-tion 36823; 7-18-77-59087; 11-15-77

FM broadcast stations; table of assign-ments:

Beaufort, S.C. .................. 3362; 1-25-78Television broadcast stations; table of as-

signments:Monahans and Odessa, Tex ........ 3363;

1-25-78FTC-Washington, D.C. Regional Office; elimi-

nation ...................................... 6579; 2-15-78HEW/SSA-Establishing paternity and secur-

ing child support good cause for refusing tocooperate ............................... 2170; 1-16-78

ICC--Corporate disclosure regulations.. 4617;2-3-78

NCUA-Privacy Act of 1974; simplification ofprocedures ................................ 5359; 2-8-78

SEC--Off-Board agency trading restric-tions ........................................... 1327; 1-9-78

DOT/FAA-Airworthiness review program;amendment no. 6: Flight amendments.

2302; 1-16-78

Next Week's Deadlines for CommentsOn Proposed Rules

AGRICULTURE DEPARTMENTAgricultural'Marketing Service-

Raisins produced from grapes grown inCalif.; comments by 3-10-78 ....... 6793;

2-16-78Agricultural Stabilization and Conservation

Service-Rice program (1978); determinations and

land diversion payments; comments by3-9-78 ............................... 5003; 2-7-78

Commodity Credit Corporation-1978 crop gum naval stores loan program;

comments by 3-8-78 .................... 4865;2-6-78

1978 crop honey price support program;comments by 3-6-78 ...... 4437; 2-2-78

CIVIL SERVICE COMMISSIONEmployee selection; uniform guidelines; joint

proposal with EEOC, Justice and LaborDepartments; cbmments by 3-7-78.

65542; 12-30-77-1506; 1-10-78COMMERCE DEPARTMENT

Maritime Administration-Operating requirements; nonsubsidized

service in U.S. foreign commerce; com-ments 3-8-78 .................. 4857; 2-6-78

National Oceanic and Atmospheric Adminis-tration-

Regional Fishery Management Councils,Fishery management plans and confi-dentiality of statistics; guidelines; com-ments by 3-10-78 ............ 1460; 1-9-78

COMMODITY FUTURES TRADINGCOMMISSION

Commodity option transaction regulations;comments by 3-8-78 .......... 4869; 2-6-78

COMPTROLLER OF THE CURRENCYCommunity Reinvestment Act, 1977; com-

ments by 3-8-78 ............. 7243; 2-21-78

DEFENSE CIVIL PREPAREDNESSAGENCY

CMI defense identification for federal em-ployees, reservists, and non-federal sup-port personnel; deletion of regulation;comments by 3-10-78 ....... 5389; 2-8-78

ENERGY DEPARTMENTEconomic Regulatory Administration-

Domestic crudeoilallocation;certainlimited-product refineries; comments by,-3-9-78 ............................. .3916; 1-30-78

ENVIRONMENTAL PROTECTIONAGENCY

Air pollution; state implementation plans:Missouri; comments by 3-6-78 ....... 4443;

2-2-78National primary drinking water regulations;

assessment of penalties for violation; com-ments by 3-10-78 ...... 5372; 2-8-78

State public water system supervision pro-gram grant regulations: comments by4-10-78 ................................ 5390; 2-8-78

Temporary ocean dumping site off KwajaleinAtol;. Marshall Islands; comments by3-10-78 ................................ 5391; 2-8-78

FEDERAL COMMUNICATIONSCOMMISSION

AM stereophonic broadcasting; reply com-ments by 3-8-78 .................. 5571; 2-9-78[Originally published at 42 FR 55.638,10-78-78]

Aviation services; additional aeronautical ad-visory station at landing areas; reply com-ments by 3-6-78 .............. 3408; 1-25-78

FM broadcast stations; table of assignments:Blytheville, Ark. and Mayfield, Ky.; reply

comments by 3-10-78.. 1515; 1-10-78Request to add new VHF stations in the top

100- markets; reply comments- by3-6-78 ................................. 1510; 1-10-78

FEDERAL DEPOSIT INSURANCECORPORATION

Community Reinvestment Act of 1977; com-ments by 3-8-78 ............... 3370; 1-25-78

Community 'Reinvestment Act, .1977; com-ments by 3-8-78 ............... 7243; 2-21-78

Unsafe and unsound banking practices; In-sider transactions; comments by3-10-78 .............................. 4051, 1-31-78

FEDERAL HOME LOAN BANK BOARDCommunity Reinvestment Act, 1977; com-

ments by 3-8-78 ............... 7243; 2-21-78Community Reinvestment Act of 1977; com-

ments by 3-8-78 ............... 3370; 1-25-78

FEDERAL RESERVE SYSTEMCommunity Reinvestment Act, 1977; com-

ments by 3-8-78 ............... 7243; 2-21-78Community Reinvestment Act of 1977; com-

ments by 3-8-78 ............... 3370; 1-25-78

FEDERAL TRADE COMMISSIONConsent agreements:

Safeway Stores, Inc.; comments by3-9-78 ............................. 1507; 1-10-78

HEALTH, EDUCATION, AND WELFAREDEPARTMENT

Food and Drug Administration-Bovine teat dips; extension of comments

period to 3-10-78 ............ 4637; 2-3-78[Originally published at 42 FR 40217,

8-9-77]Export of new animal drugs for Investiga-

tional use; comments by 3-7-78.1100; 1-6-78

Medical devices; impact-resltant lenses Ineyeglasses and sunglasses; commentsby 3-7-78 ......................... 1106; 1-6-78

Warning statement and warning postersconcerning coal tar hair dyes containing4-methoxy-m-phenylenediamlne (alsoknown as 2,4-diaminoinisole) or 4-methoxy-m-phenylenediamine sulfate(also known as 2,4-diaminoanlsole sul-fate); comments by 3-7-78 .......... 1101:

1-6-78Health Resources Administration-

Health Planning and Development Nation-al Council, Washington, D.C. (open)3-10-78 ........................... 7715; 2-14-78

National Institutes of Health-Neurological Sciences Study Section, Divi-

sion of Research Grants, Bethesda, Md.(open) 3-10 through 3-12-78 ...... 7717;

2-24-78Office of the Assistant Secretary for Health-

Protection of Human Subjects of Blomedl-cal and Behavioral Research NationalCommission, Bethesda, Md. (open) 3-10and 3-11-78 .................. 7709; 2-24-78

Office of the Secretary-Protection of human subjects; comments

by 3-6-78 ........................ 1050; 1-5-78Public Health Service-

Grants to nursing schools for support oftheir educational programs: commentsby 3-6-78 ......................... 4790; 2-3-78

Provisions for special nursing projectgrants; comments by 3-6-78 ....... 4784;

2-3-78


REMINDERS-Continued

JUSTICE DEPARTMENTAttorney General-

Employee selection; .uniform guidelines;joint proposal with EEOC, CSC, and La-bor Department comments by3-7-78. 65542; 12-30-77

Parole Commission-Parole, release, supervision and recommit-

ment of prisoners, youth offenders andjuvenile delinquents; comments by3-10-78.................. 5011; 2-7-78

LABOR DEPARTMENTOffice of the Secretary-

Employee selection; uniform guidelines;joint proposal with EEOC, CSC, and Jus-tice Department; comments by2-7-78. . . 65542; 12-30-77

NEIGHBORHOODS, NATIONALCOMMISSION

Meeting, Washington, D.C. (open) 3-10through 3-12-78 - _ 7747; 2-24-78

TRANSPORTATION DEPARTMENT-Coast Guard-

Drawbridge operations:Back Cove, Portland, Me.; comments by

3-6-78 .......................... 4440; 2-2-78Lake Champlain, N.Y. comments by

3-6-78 ...... 4440; 2-2-78Passaic River, NJ.; comments by

3-6-78 . 4439; 2-2-78

'TREASURY DEPARTMENTComptroller of The Currency-

Community Reinvestment Act of 1977;comments by 3-8-78 .... 3370; 1-25-78

Internal Revenue Service-Employee retirement benefit plans; annual

registration; cofnments by 3-6-78.2892; 1-20-78

Refundings of Industrial DevelopmentBonds; comments by 3-9-78 - 6261;

2-14-78Government Financial Operations Bureau-

Surety companies doing business with theU.S.; application and renewal fees; com-ments by 3-8-78 ............ 6812; 2-16-78

VETERANS ADMINISTRATIONVeterans education; implementation of GI Bill

Improvement Act of 1977; comments by3-9-78 . ...... 5549; 2-9-78

Next Week's Meetings

ADMINISTRATIVE CONFERENCE OF THEUNITED STATES

Rulemaking and Public Information Commit-tee, Washington, D.C. (open) 3-10-78.

6115; 2-13-78ARMS CONTROL AND DISARMAMENT

AGENCYGeneral Advisory Committee, Washington,

D.C. (closed) 3-9 and 3-10-78... 6865;2-16-78

ARTS AND HUMANITIES NATIONALFOUNDATION

Expansion Arts Advisory Panel, Washington,D.C. (partially open) 3-7 through

............ 7071; 2-17-78

Research Grants Panel Advisory Committee.Washington, D.C. 3-10-78 _ _ 3183;

1-23-78Vsual Arts Advisory Panel. Washington. D.C.

(closed) 3-8 through 3-10-78 .- 7071;2-10-78

COMMERCE DEPARTMENTNational Oceanic and Atmospheric Adminis-

tration-Mid-Atlantic Fishery Management Council,

Phiadetphia, Pa. (open) 3-8 and3-9-78 ....................... 4450, 2-2-78

DEFENSE DEPARTMENTArmy Department-

Shoreline Erosion Advisory Panel. Arling-ton (Rosalyn), Va. (open) 3-7 and3-8-78 ............... 5559; 2-9-78

Office of the Secretary-Defense Advisory Committee on Women

in the Services, Washington, D.C. (open)3-11-78 ......- 7249; 2-21-78

Joint Strategic Target Planning Staff Scl-entific Advisory Group. Olfutt Air ForceBase, Nebr. (closed) 3-7 and3-8-78- - 1379; 1-9-78

EDUCATION OF DISADVANTAGEDCHILDREN NATIONAL ADVISORYCOUNCIL

San Diego, ,Cad. (open) 3-5 and3-6-78. 7048; 2-17-78

ENERGY DEPARTMENTFederal Energy Regulatory Commission-

Statements and reports (schedules), limit-ing of public availablity. Washington.D.C. (open) 3-9-78 ...... 5524; 2-9-78

Office of Envionment-Study Group on the Global Envronmental

Effects of Carbon Dioxide, Washington,D.C. (open) 3-9-78.- 7259; 2-21-78

ENVIRON MENTAL PROTECTIONAGENCYAdministrator's Toxic Substances Advisory

Committee, Washington, D.C. (open)3-8-78 .............. 7259; 2-21-78

NPDES Permit Program, Washington. D.C.(open) 3-6-78......... 6317; 2-14-78

HEALTH, EDUCATION, AND WELFAREDEPARTMENTAlcohol, Drug Abuse, and Mental Health Ad-

ministration-Epidemiologic Studies Review Committee.

Washington, D.C. (partially open) 3-7and 3-8-78........... 4679; 2-3-78

Minority Group Mental Health ProgramsReview Committee, Washington. D.C.(partially open) 3-9 and 3-10-78.

7026; 2-17-78Education Office-

Developing Institutions Advisory Council.Washington, D.C. (open) 3-10-78.

6166; 2-13-78Food and Drug Administration-

Advisory Committees, Silver Spring andBethesda, Md. (partially open) 3-7through 3-11-78. 7027-7031; 2-17-78

Task Force on Decorated Glassware,Washington, D.C. (open) 3-7-78.

4116; 1-31-78

National Institutes of Health-Allergy and Cinical Immunology Research

Committee, Bethesda, Md. (partiallyopen) 3-6-78 - - 5893; 2-10-78

Animal Resources Advisory Committee,Bethesda, Md. (partia y open) 3-8through 3-10-78 - 5073; 2-7-78

Biop cs and Biophysical Chemistry AStudy Section, Wasington. D.C. (open)3-S-78 2005; 1-13-78

Biophysics and Biophysical Chemistry BStudy Section, Bethesda, Md., (open)3-9 through 3-11-78- 2005; 1-13-78

Cheical Selection Subgroup -of theClearinghouse on Environmental Car-dnogens, Bethesda, Md. (open)3-8-78 - 5075; 2-7-78

Clinical Trials Review Committee, Ana-heim, Calif (partially open) 3-9 and3-10-78. 7046; 2-17-78

Data Evaluation/Risk Assessment Sub-group of the Clearinghouse on Environ-mental Carcinogens etal, Bethesda, Md.(open) 3-6 and 3-7-78 - 5075; 2-7-78

General Medicine A Study Section, Be-thesda Md. (open) 3-6 through3-8-78..... 2005; 1-13-78

General Medicine A Study Section, Be-thesda, Md. (partialfy open) 3-6 through3-8-78-_ 6324; 2-14-78

Human Embryology and DegrefopmentStudy Section, Bethesda, Md. (open)3-8 through 3-11-78- 2005; 1-13-78

Immunological Sciences Study Section,Silver Spring, Md. (open) 3-6 through3-&-78 - 2005; 1-13-78

M"crobiology and Infectu Diseases Advi-sory Committee, Bethesda, JAd. (pallyopen) 3-6-78 - 5895; 2-10-78

Molecular Cyioy Study Seton, Bethes-da. Md. (open) 3-8 through3-10-78 - 2005; 1-13-78,

National Cancer Institute Adisory Com-mitees Bethesda, Md. (partially open)3-6 through 3-9-78 . 5894; 2-10-78

Neurological Sciences Study Section, Be-thesda, Md. (open) 3-9 through3-12-78 .... 2005; 1-13-78

Pathobiolog'cal Chemistry Study Section,Bethesda, Md. (open) 3-8 through3-11-78- - 2006; 1-13-78

Toxicology Study Section, San Francisco,Cai. (open) 3-10 through3z-12-78 - 2006; 1-13-78

Virology Study Section, Bethesda, Md.(open) 3-9 through 3-11-78 - 2006;

1-13-78Visual Sciences A Study Section, Wash-

ington, D.C. (open) 3-6 through-3-9-78 2006; 1-13-78

Workshop on Biology of Aging, Bethesda,Md. (open) 3-7-78..- 1547; 1-10-77

Office of the Assistant Secretary for Health-Advisory Committees, Silver Spring. Md.

(partially open) 3-6 through3-9-78 - 7048; 2-17-78

Office of the Secretary-Evaluation of the appropriateness of Fed-

eral Interagency day care requirements(FIDCR), Dallas, Tex- (open)3-8-78 6166; 2-13-78

FEDERAL. REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978

REMINDERS--.-Continued

INTERIOR DEPARTMENTHistory Areas Committee, Washington, D.C.

(open) 3-10-78 ................. 6168; 2-13-78National Park Service-

Appalachian National Scenic Trail AdvisoryCouncil, Washington, D.C., (open)3-10-78 ........................... 7481; 2-23-78

National Park System Advisory Board,Oversight Committee, Washington, D.C.(open) 3-9-78 ................ 6169; 2-13-78

LABOR DEPARTMENTOccupational Safety and Health Administra-

tion-National Advisory Committee on Occupa-

tional Safety and Health, Washington,D.C. (open) 3-6 and 3-7-78 ........ 7064;

2-17-78Office of the Secretary-

Advisory Committee to Review AdvisoryMetal and Nonmetallic Mine Health andSafety Standards, Washington, D.C.(open) 3-6-78 ................ 7071; 2-17-78

MENTAL HEALTH, PRESIDENT'SCOMMISSION

Washington, D.C. (open) 3-6 and3-7-78 ................................. 7277; 2-21-78

NATIONAL COMMISSION FORMANPOWER POLICY

Meeting, Washington, D.C., (open)3-10-78 .............................. 7379; 2-22-78

NATIONAL CREDIT UNIONADMISTRATION

National Credit Union Board, Washington,D.C. (open) 3-7 and 3-8-78 .. 5114;

2-7-78NATIONAL SCIENCE FOUNDATION

Advisory Committee for Materials Research,Subcommittee on Metallurgy and Materi-als, Washington, D.C. (open) 3-6 and3-7-78 ................................. 7072; 2-17-78

NUCLEAR REGULATORY COMMISSIONAdvisory Committee on Reactor Safeguards,

Procedures Subcommittee, Washington,D.C. (partially open) 3-8-78 ............ 7274;

2-21-78Advisory Committee on Reactor Safeguards,

Subcommittee. on Regulatory Activities,Washigton, D.C. (open) 3-8-78 ...... 7274;

2-21-78Advisory Committee on Reactor Safeguards,

Washington, D.C., (open) 3-9 through3-11-78 .............................. 7382; 2-22-78

Risk Assessment Review Group, Washing-ton, D.C. (open) 3-9 and 3-10-78.. 7274;

2-21-78

SCIENCE AND TECHNOLOGY POLICYOFFICE

Intergovemmental Science, Engineering, andTechnology Advisory Panel, Seattle,Wash. (open) 3-10-78 ..... 7383; 2-22-78

Review Panel on Dam Safety Programs,Washington, D.C., (open) 3-9-78 ... 7384;

2-22-78

STATE DEPARTMENTShipping Coordinating Committee, Subcom-

mittee on Safety of Life at Sea, Washing-ton, D.C. (open) 3-8-78 ... 7279; 2-21-78

Study Group of the U.S. Organization for theInternational Radio Consultative Commit-tee (CCIR), Washington, D.C. (open)3-9-78 ................................. 7280; 2-21-78

Music Advisory Committee, Academic MusicAdvisory Panel, Washipgton, D.C. (open)3-6-78 ................................. 6857; 2-16-78

U.S. Organization of the International Tele-graph and Telephone Consultative Com-mittee, Study Groups 1 and 4, Washington,D.C. (open) 3-9-78 (2 docu-ments) ..................... 6857-6858; 2-16-78

Next Week's Public Hearings

CIVIL AERONAUTICS BOARDPittsburgh-Los Angeles/San Francisco/

Denver Service Investigation, Washington,D.C., 3-7-78 ...................... 7337; 2-22-78

ENERGY DEPARTMENTConservation and Solar Application Office-

Performance standards for electric and hy-brid vehicles, Washington, D.C.,3-9-78 ............................ 5841: 2-10-78

International voluntary agreements: roc-ordkeeping requirements, Washington,D.C., 3-10-78 ................ 6608; 2-15-78

HEALTH, EDUCATION, AND WELFAREDEPARTMENT

Food and Drug Administration-X-Otag Plus tablets, Rockville, Md,,

3-6-78 ............................... 4682; 2-3-78

SECURITIES AND EXCHANGECOMMISSION

National Clearance and Settlement System;establishment, Washington, D.C., begin-ning 3-7-78, comments by 3-15-78.

4295; 2-1-78

TRADE NEGOTIATIONS OFFICE OFSPECIAL REPRESENTATIVE

American Institute of Marine Underwriters,Washington, D.C. 3-7 and 3-8-78.. 7384:

2-22-78

List of Public Laws

This Is a continuing listing of public billlthat have become law, the text of which Isnot published in the FPmEA, REGXSTER,Copies of the laws in individual pamphletform (referred to as "slip laws") may beobtained from the U.S. Government PrintingOffice.

H.R. 3454 ................................... Pub. L 95-237"Endangered Amedran Wilderness Act of

1978." (Feb. 24, 1978; 92 Stat. 40) Price$.70.

S. 1340 ........................................ Pub. L 95-238'"Department of Energy Act of 1978-Civilian

Applications." (Feb. 25, 1978; 92 Stat. 47)Price $1.50.


8247

presidential documents[3195-O1l

Title 3-The President

Memorandum of February 13, 1978

Determination Pursuant to Section 2(c) 1) of the Migration and Refugee AssistanceAct of 1962, as Amended, (the "Act"), Authorizing the Use of $5,750,000 ofFunds Made Available from the United States Emergency Refugee and MigrationAssistance Fund

[Presidential Determination No. 78-5]

Memorandum for the Secretary of State

THE WurrE HOUSE,Washington, February 13, 1978.

In order to meet unexpected urgent needs arising in connection with theadmission of 7,000 Indochinese refugees presently in Thailand and elsewherewho are authorized by the Attorney General on January 25, 1978, for paroleentry into te United States, and to similarly assist such other Indochineserefugees as may be otherwise admitted, I hereby determine, pursuant toSection 2(c)(1) of the Act, that it is important to the national interest that$5,750,000 from the United States Emergency Refugee and Migration Assis-tance Fund be made available to the Department of State for this purpose.

The Secretary of State is requested to inform the appropriate committeesof the Congress of this Determination and the obligation of funds made underthis authority.

This determination shall be published in the FEDERAL REGISTER.

[FR Doc. 78-5496 Filed 2-27-78; 2:41 pm]


THE PRESIDENT

[3195-011

Memorandum of February 15, 1978

Determination Pursuant to Section 2(c)(1) of the Migration and Refugee AssistanceAct of 1962, as Amended, (the "Act") Authorizing the Use of $300,000 ofFunds Made Available From the United States Emergency Refugee and MigrationAssistance Fund

[Presidential Determination 78-6]

Memorandum for the Secretary of State

TIE WmE HOUSE,

Waslington, February 15, 1978.

In order to meet unexpected and urgent needs arising from political andsecurity actions against substantial numbers of persons in Latin America, Ihereby determine, pursuant to Section 2(c)(1) of the Act, that it is importantto the national interest that up to $300,000 of funds appropriated under theUnited States Emergency Refugee and Migration Assistance Fund be contrib-uted to the Intergovernmental Committee for European Migration for theresettlement of refugees and detainees from Latin America to third countriesabroad.

The Secretary of State is requested to inform the appropriate committeesof the Congress of this Determination and obligation of funds under thisauthority.

This determination shall be published in the FEDERAL REGISTER.

o 7- 7(FR Doe. 78-5497 Fled 2-27-78: 2:42 pm]


8249

8251

rules and regulationsThis section of the FEDERAL REGISTER contains regulatory documents hwAng general applcability and legal effect most of which are keyed to and

codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each

month.

[1505-01]ritle I-General Provisions -

CHAPTER I-ADMINISTRATIVE COMMITTEE OF'THE FEDERAL REGISTER

CFR CHECKUST

1977 Issuances

This checklist, prepared by theOffice of the Federal Register, is pub-lished in the first issue of each month.It is arranged in the order of CFRtitles, and shows the revision date andprice of the volumes of the Code ofFederal regulations issued to date for1977. New units issued during the-month are announced on the backcover of the daily FEDEtAL RrsmT asthey become available.

For a Checklist of current CFR vol-umes comprising a complete CFR set,see the latest issue of the CumulativeList of CFR Sections Affected, whichis revised monthly.

The rate for subscription service toall revised volumes issued for 1977 is$350 domestic, $75 additional for for-eign mailing.

Order from Superintendent of Docu-ments, Government Printing Office,Washington. D.C. 20402.

CFR Unit (Rev. as of Jan. 1, 1977):

Title12 EReservedi34.

7 Parts:0-40

5253-209210-699-700-749__

-750-899-..900-944945-980981-9991000-1059 .-1060-11191120-11991200-1499....

10 Parts:0-192O0-nd---.-

11 (Rev. 5/1/77)..---12 Parts:

30-end..-13

14Parts:6199 ........60-199 ,

1200-end-.

Prica$1.65

3.003.254.70

5.304.205.205.806.104.101.804.252.402.504.254.403.204.207.252.606.80

4.404.602.30

7.407.304.20

6.005.106.202.20

Title1516 Parts:

0-149150-9991000-end..- -..

CFR Unit (Rev. as of April 1, 197):

-1718 Parts:

1-149

19 1 50- end :- = - --

20 Parts:01-399400-499500-end..

21 Parts:1-99100-199200-299300-499500-599600-12991300-en - .

2324 Part=:

0-49500-en .. .2526 Parts:I CH 1.0-1.169) ..

1 (H 1.170-1.300)1 (H 1.301-1.400)1 (q 1.401-1.500)1 (§ 1.501-1.640)1 (H 1.641-3-850)1 (U 1.851-1.1200).1 (0 1.1201-end)2-2930-3940-299 -300-499600-end-

27

CFR Unit (Rev. as of July 1. 1977):

29 ParU:0-4991900-19191920-e .. .... ... ..d ..

3032 Parts:

1-39 (V. 1) (Rev. 7/1/76)(V. II) (Rev. 71/76)(v. InI) (Rev. 7/1/76) -

400-589590-699..........1000-13991400-15991600-end ,

33 Parts:1-199 --

3435-3637

40 Parts:°0-49.

50-5960-99100-399

Prke Title5.35 41 Chaptesc

1-25.50

Pri.e

5.252.752.305.004.254.505.75

9 (Rev. 9/25/77)10-1719-100 -n101 6"a

CFR Unit (Rev. as of Oct. 1. 1977):

46 Parts:70 9 3.25

49 Part:1-93 3.00

(6325-01]

Tde 5--AdmnlIsrative Personnel

CHAPTER I--CIVIL SERVICE COMMISSION

PART 213--EXCEPTED SERVICE

Deportment of Enegy

AGENCY: Civil Service Commission.

ACTION: Final rule.

SUMMARY: An additional position ofStaff Assistant to the Director, Execu-tive Secretariat, is excepted from thecompetitive service under Schedule Cbecause It Is confidential in nature.

EFFECTIVE DATE: March 1.1978.FOR FURTHER INFORMATIONCONTACT:.

William Bohling. 202-632-4533.Accordingly, 5 CFR 213.3331(s)(1) is

amended as set out below*

§ 213.3331 Department of Energy.

a s 0 0 f

(s) Office of the Director, ExecutiveSecretariat (1) Two Staff Assistants to'the Director.(5 U.S.C. 3301, 3302; E.O. 10577. 3 CFR1954-1958 Camp.. p. 218.)

For the United States Civil ServiceCommission.

JALS C. SPRY.ExecutiveAssistantto the Commiwioners.

EFR Doe. 78-5501 Filed 2-28-78; 8:45 am]

FEDERAL REGISTER, VOL 43, NO, 41-WENESDAY, MARCH 1, 1978

1500-ena--

t

RULES AND REGULATIONS

[3410-16]

Title 7-Agriculture

SUBTITLE A-OFFICE OF THE SECRETARY

PART 2-DELEGATION OF AUTHORITY BY THESECRETARY OF AGRICULTURE AND GENER-AL OFFICERS OF THE DEPARTMENT

Clean Water Ad of 1977 Implementation

AGENCY: U.S. Department of Agri-culture.ACTION: Final rule.SUMMARY: This document providesdelegations of authority to the Assis-tant Secretary of Agriculture for Con-servation, Research, and Educationand the Administrator, Soft Conserva-tion Service, relating to section 35 ofthe Clean Water Act of 1977.EFFECTIVE DATE: March 1, 1978.FOR FURIL INFORMATIONCONTACT:

M. D. Burdick, Director, ResourceDevelopment -Division, Soil Conser-vation Service, U.S. Department ofAgriculture, P.O. Box 2890, Wash-ington, D.C. 20013, 202-447-4554.

SUPPLEMENTARY INFORMATION:On December 28, 1977, PresidentCarter signed the Clean Water Act of1977, Pub. L. 95-217. This Act, amongother purposes, directs the Secretaryof Agriculture, with concurrence ofthe Administrator of the Environmen-tal Protection Agency, to establish andadminister a program to enter intocontracts with rural landowners andoperators for the purpose of installingand maintaining practices and mea-sures to control rural nonpoint sourcepollution. Landusers within designatedhigh priority areas will have the op-portunity to enter into 5-10 year con-tracts based on plans approved bylocal soil conservation districts. Tech-nical and financial assistance providedunder these contracts will be based onthe landuser's agreement to managehis land in iccordance with locallyidentified "best management prac-tices."

Accordingly, Part 2, Subtitle A, Title7, Code of Federal Regulations isamended as follows:

Subpart C-Delegations of Authorityto the Deputy Secretary, Assistant Sec-retaries, the Director of Economics,Policy Analysis and Budget, and theDirector, Office of Governmental andPublic Affairs.

Section 2.19 is amended by adding anew paragraph (f)(9) to read as fol-lows:

§ 2.19 Delegations of authority to the As.sistant Secretary for Conservation, Re-search and Education.

,(f)'*

(9) Administer responsibilities andfunctions assigned under section 35 ofthe Clean Water Act of 1977, Pub. L.95-217, to the Secretary of Agricul-ture.

a * * *

Subpart G-Delegation of Authorityby the Assistant Secretary for Conser-vation, Research and Education.

Section 2.62 is amended by adding anew paragraph (a)(l) to read as fol-lows:

§ 2.62 Administrator, Soil ConservationService.

(a) ***(11) Administer rural water quality

cost-sharing program and other re-sponsibilities assigned under section 35of the Clean Water Act of 1977, Pub.IL 95-217.

* * * * *

(5 U.S.C. 301 and Reorganization Plan No. 2of 1953.)

For Subpart C:Dated: February 16, 1978.

BOB BERGLAND,Secretary ofAgriculture.

For Subpart G:Dated: February 16, 1978.

M. RuPERT uTLER.Assistant Secretary for Conser-

vation, Research and Educa-tion.

(FR Doe. 78-5350 Filed 2-28-78; 8:45 am]

[3510-24]

Title 13-Business Credit and Assistance

CHAPTER Ill-ECONOMIC DEVELOPMENT AD-MINISTRATION, DEPARTMENT OF COM-MERCE

PART 308-SPECIAL ECONOMIC DEVELOP-MENT AND ADJUSTMENT ASSISTANCEGRANTSPART 309-GENERAL REQUIREMENTS FOR

FINANCIAL ASSISTANCE

AmendmentsAGENCY: Economic Development Ad-ministration (EDA), Department ofCommerce.ACTION: Final rule.SUMMARY: These regulations revisecertain aspects of EDA's Special Eco-nomic Development- and AdjustmentAssistance Grant program. Thesechanges are necessary to bring theprogram regulations into conformancewith the program's authorizing legisla-tion, as amended. The intended effectof these amendments is to updateEDA's regulations.DATES: Effective date: February 21,1978. Comments by: March 31, 1978.

ADDRESS: Send comments to: Assls-tant Secretary for Economic Develop-ment, U.S. Department of Commerce,Room 7800B, Washington, D.C. 20230.FOR FURTHER INFORMATIONCONTACT:

Information on these regulationsonly: James F. Marten, U.S. Depart-ment of Commerce, Room 7009,Washington, D.C. 20230, 202-377-5441.

SUPPLEMENTARY INFORMATION:Pub. L. 94-487 made several changesto Title IX of the Public Works andEconomic Development Act of 1965(PWEDA). These amendments Imple-ment those statutory changes. Eachamendment and the legislative changewhich necessitated it are describedbelow.

PART 308

1. § 308.4 has been amended to in-clude a new criterion under which theAssistant Secretary may award adjust-ment grants. As the result of anamendment to section 903(a)(1) ofPWEDA, the Assistant Secretary maygrant assistance to an eligible appli-cant which demonstrates "long-termeconomic deterioration". A new para.graph (2) is added to subsection (a) of§ 308.4 to describe this eligibility crite.rion. Paragraphs (1) through (Iv) of§ 308.4(a)(2) contain examples of con.ditions which may create "long-termeconomic deterioration."

2. § 308.5 has been revised in severalplaces to reflect a number of amend-ments to Title IX of PWEDA.

§ 308.5(b)(8) has been revised to re-flect the eligibility of businesses forrelocation assistance, Previously, suchassistance was available only for indi-viduals. This change was necessitatedby an amendment to section 903(a)(1)of PWEDA.

§ 308.5(b)(12) also has been revisedto conform its language to section903(a)(1) of PWEDA, as amended.

§ 308.5(c) has been revised to includean additional method, payments toreduce interest on guaranteed loans,through which recipients may redis-tribute Title IX assistance. Thischange was required by an amend-ment to section 903(a)(2)(A) ofPWEDA. Paragraph (c) has also beenre-written to improve Its clarity.

3. § 308.24 has been revised bymaking certain technical and formatchanges and by including payments toreduce interest on guaranteed loansamong the forms of business develop-ment assistance available throughTitle IX. As with the change to§ 308.5(c), this revision was necessitat-ed by an amendment to section903(a)(2)(A) of PWEDA.

4. § 308.27 has been revised bymaking certain technical and formatchanges, such as giving the section anew title, and by listing criteria for

FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978

8252

the extension of* relocation assistanceto businesses. New paragraph (c) con-tains the requirements for and restric-tions on the use of relocation assis-tance for businesses.

5. New § 308.28 has been added toPart 308 to incorporate certain materi-als removed from § 308.27.

As a result of the inclusion of thenew §308.28, the previous § 308.28 isrenumbered as § 308.29.

PART 309

1. § 309.3 has been amended byadding to it a new paragraph (i) to dis-cuss the relationship between the relo-cation assistance authorized by TitleIX and the general prohibition on theuse of EDA assistance for relocationpurposes.. Because these amendments relate tothe EDA grant and loan program, theyare exempt from the procedures de-scribed in section 553 of the Adminis-trative Procedure Act (5 U.S.C. 553).However, in the spirit of public policyset forth in that Act, interested per-sons may" submit written suggestionsregarding these amendments to theAssistant Secretary for Economic De-velopment at the above address.

EDA has determined that this docu-ment does not constitute a major pro-posal requiring the preparation of an'Economic Impact Statement underExecutive Order 11821, as amended byExecutive Order 11949, and OMB Cir-cular No. A-107.

Accordingly, 13 CFR Chapter M ishereby amended by revising Parts 308and 309 to read as follows:

1. § 308.4(a) is revised to read as fol-lows:

§ 308.4 Award of adjustment grants.(a) The Assistant Secretary may

make grants'directly to an eligible re-cipient in an area for which the Assist-ant Secretary has made one of the fol-lowing determinations.

(1) The area has experienced, ormay reasonably be foreseen to beabout to experience, a special econom-ic development need. This need mayarise from actual or threatened severeunemployment caused by economicdislocation, including unemploymentcaused by actions of the Federal Gov-ernment or by compliance with Feder-al regulations, and from economic ad-justment problems resulting fromsevere changes in economic conditions.

(2) Tie area has demonstrated long-term economic deterioration in itslocal economic base which contributesto the out-migration of economic ac-tivity and results in a decrease in em-ployment opportunities. This situationmay arise in one or more of the follow-ing ways:

(i) Widespread obsolescence of exist-ing plant capacity and a lack of captialreinvestment in the area;

(ii) A continuing shift in consump-tion patterns producing a long-term


decline In demand for the output of amajor component of the area's eco-nomic base;

(ill) Inadequacy of an areas supportfacilities relative to the changing re-quirements of its major economic ac-tivities; and

(iv) Gradual depletion of a naturalresource that has been a major compo-nent of the economic base of the area.

Grants will not be made whichwould have the purpose and effect ofreplacing the efforts of the economicadjustment program of the Depart-ment of Defense.

2. Paragraphs (b) and (C) of § 308.5are revised to read as follows:

§ 308.5 Use of adjustment grants.

(b)(9) Relocation o

dividuals;

(12) Other assiststrably furthers tment objectivesnature of this ason the specific awhich is encountegranted under thJect to normal sttory restrictions.

(c) Adjustmentplan may be disbcipients throughor through redistrpublic and private

(1) Adjustment gtributed in thepublic and privateonly.

(2) Adjustment gtributed in the Iguarantees, payrmest on guaranteedpropriate assstanvate entities.

3. § 308.24 is revlows:

§308.24 Business de(a) An adjustm

used for businessposes if the busina reasonable relatiTitle IX. Businessmay be used:

(1) For the pmand operation of(including machinfor industrial or cAcluding the constrings;

(2) For the rehdoned or unused bt

(3) For the alterenlargement of exi

(b) Business devmay be made throlowing activities:

8253

(1) Purchasing evidences of indebt-edness:

(2) Making fixed asset loans andworking capital loans (which may in-lude participation in loans);

(3) Guaranteeing fixed asset loansand working capital loans made to pri-vate borrowers by private lending in-stitutions for any of the purposes ofthis subsection upon application bythe lending institutions;

(4) Making payments to reduce in-terest on guaranteed loans; and

(5) Guaranteeing rental payments orleases for buildings and equipment.

c) Title IX grants may be used tofund all or part of the cost of the ac-tivities described in this section.

4. § 308.27 is revised in Its entirety.including Its title, to read as follows.

§ 308.27 Relocation assistance.S * "(a) An adjustment grant may be

used to assist in the relocation of indi-f businesses and'in- viduals and businesses if such assist-

ance has a reasonable relation to thepurposes of Title IX and meets the cri-

S* teria contained in paragraphs (b) and(c) of this section as appropriate.

tance which demon- (b) An adjustment grant may behe economic adjust- used to assist in the relocation of un-of this part. The employed workers and their famileisstance will depend living with them only if both the fol-adjustment problem lowing conditions are met:ered. Any assistance (1) It Is reasonably clear that alter-iparagraph s sub-stutory and regula- native employment will not occur for

such workers in their present locations

;rants to carry out a during the process of long-range eco-ursed by eligible re_ nomic adjustment; anddirect expenditures (2) Relocation assistance fundedribution by them to under the Comprehensive Employ-entities. ment and Training Act of 1973 or therants may be re-dis- Trade Act of 1974 is not available toform of grants to such workers.e non-profit entities (c) An adjustment grant may be

used to assist in the relocation of busi-,rants may be re-dis- nesses within the same area when it is'orm of loans, loan reasonably clear that alternative op-ents to reduce inter- portunities for the operation of suchloans, or other ap- businesses will not occur in their pre-

ce to public and pr- sent locations during the process oflong.range economic adjustment.

rised to read as fol- (1) For purposes of this paragraph,the words "same area" mean that geo-graphic area which will allow employ-evelopment. ees of relocating businesses to retain

ent grant may be their jobs.development put- 5. A new §308.28 is added and exist-

ess development has ing § 308.28 is renumbered as § 308.29on to the purpose of to read as follows:.development grants

§308.28 Other uses of adjustment assis-rchase, development tance.land and facilities

ery and equipment) The Assistant Secretary may makmmercial usage, in- adjustment grants available for public

uction of new build- services, rent supplements, mortgagepayment assistance, training, and for

abilitation of aban- other appropriate uses if reasonablyuldings; and related to the purposes of Title IX andation, conversion or if useful to carry out a plan.sting buildings.elopment assistance § 308.29 General requirement.'ugh any of the fol-

0 0

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARGI 1, 1978


1. A new subsection (I) is added to§ 309.3 to read as follows:

§ 309.3 Nonrelocation.

(I) Relocation assistance made underthe authority of Title IX of the Actand meeting the requirements of§ 308.27 Is not prohibited by this sec-tion.

AuTxorr=. Pub. L. 94-487, 90 Stat. 2331(42 U.S.C. 3121 et seq.); sec. 701, Pub. L. 89-136, 79 Stat. 570 (42 U.S.C. 3211); Depart-ment of Commerce Organization Order 10-4, as amended (40 FR 56702, as amended).

Dated: February 21, 1978.

ROBERT T. HALL,Assistant Secretary

for Economic Development[F Doc. 78-5384 Filed 2-28-78; 8:45 am]

[6320-01]

Title 14-Aernautics and Space

CHAPTER H-CIVIL AERONAUTICSBOARD

SUBCHAPTER 8--ROCEDURAL REGULATIONS[Regulation PR-171, Amdt. 36]

PART 302-RULES OF PRACTICE INECONOMIC PROCEEDINGS

Transfer of Authority From the Chief AdminIs-tratIve Law Judge to the Board's Secretary

AGENCY: Civil Aeronautics Board.ACTION: Final Rule.

SUMMARY: This rule transfers fromthe Chief Administrative Law Judge tothe Board's Secretary certain author-ity for granting continuances and ex-tensions of time. This rulemaking, un-dertaken on the Board's own initiative,Is designed to improve the manage-ment of the Board's responsibilities.DATES: Effective: February 23, 1978.Adopted: February 23, 1978.FOR FURTHER INFOIMATIONCONTACT:

Phyllis T. Kaylor, Secretary, CivilAeronautics Board, 1825 ConnecticutAvenue NW., Washington, D.C.20428, 202-673-5068.

SUPPLEMENTARY INFORMATION:Section 302.17 of the Board's rules ofpractice provides that the Board, theChief Administrative Law Judge, orthe administrative law judge assignedto a proceeding may grant continu-ances and extensions of time. In actualpractice, most continuances and exten-sions are granted by the Chief Admin-istrative Law Judge since they occur:(I) In cases which are not the subjectof formal hearings, or (ii) at timesbefore or after the assignment of apresiding administrative law judge. Webelieve that it is preferable that theSecretary rather than the Chief Ad-ministrative Law Judge have this on-

going responsibility so that the ChiefJudge can devote his full time andeffort to the administration of theBoard's trial caseload.

The Secretary will undertake her re-sponsibility in cooperation with thoseoffices and bureaus of the Board re-sponsible for processing the Item towhich the continuance or extensionsof time is directed. Although we shalldelete the name of the Chief Adminis-trative Law Judge from Rule 17, hewill continue to exercise the powernow held by the administrative lawjudge assigned to a proceeding wherethat administrative law judge is un-available.

Since this amendment affects a ruleof agency organization and procedure,the Board finds that notice and publicprocedure are unnecessary, and thatthe rule may become effective immedi-ately.

Accordingly, the Board amends sec-tion 302.17 of its rules of practice toread as follows:§302.17 Continuances and extensions of

time.(a) Generally. Whenever a party has

the right or Is required to take actionwithin a period prescribed by thispart, by a notice given thereunder, orby an order or regulation, the Board,the Secretary or the administrativelaw judge assigned to the proceedingmay: (I) Before the expiration of theprescribed period, with or withoutnotice, extend such period; or (ii) uponmotion, permit the act to be doneafter the expiration of the specifiedperiod, where the failure to act Isclearly shown to have been the resultof excusable neglect.

(b) Procedures. Except where an ad-ministrative law judge has been as-signed to a proceeding, requests forcontinuances or extensions of time, asdescribed in clauses (I) or (fi) of para-graph (a), shall be directed to theBoard or its Secretary. Requests forcontinuances and extensions of timemay be directed to the Chief Adminis-trative Law Judge in the absence ofthe administrative law judge assignedto the proceeding.

(See. 204(a) of the Federal Aviation Act of1958, as amended. 72 Stat. 743, 49 U.S.C.1324; Reorganization Plan No. 3 of 1981, 75Stat. 837, 26 FR 5989, 49 U.S.C. 1324 (note).)

By the Civil Aeronautics Board.

PHYLLIs T. KAYLOR,Secretary.

[FR Doc. 78-5425 Flned 2-28-78; 8:45 am]

[3510-13]

Title 15-Commerce and Foreign Trade

SUBTITLE A-OFFICE OF THE SECRETARY OFCOMMERCE

PART 16-PROCEDURES FOR A VOLUNTARYCONSUMER PRODUCT INFORMATION LA-BEUNG PROGRAM

Amendment To Permit CPILP Labels To IncludeInformation About a Performance Character-IstIc When Another Federal Agency RequiresLabeled Information About Thai Charaderls-tic

AGENCY: Assistant Secretary for Sci-ence and 'Technology, U.S. Depart-ment of Commerce,ACTION: Rule.SUMMARY: This document amendsthe procedures for the Voluntary Con-sumer Product Information LabelingProgram (CPILP) to authorize the De-partment of Commerce to include onCPILP labels for selected consumerproducts information about perfor-mance characteristics which are in-cluded in the labeling program of an-other Federal agency, provided theother agency agrees. The object of theamendment is to decrease the com-plexity of labeling for manufacturersby enabling them to comply with thelabeling requirements of other Gov-ernment programs through participa-tion in CPILP, and to simplify productcomparison by consumers at the pointof sale.EFFECTIVE DATE. March 31, 1978.FOR F URTHER INFORMATIONCONTACT:

Dr. Howard I. Forman, Deputy As-sistant Secretary for Product Stan-dards, Room 3876, U.S. Departmentof Commerce, Washington, D.C.20230, 202-377-3221.

SUPPLEMENTARY INFORMATION:On May 25, 1977, the Department ofCommerce announced in the FEDERALREGISTER (42 FR 26647) proceduresunder which a Voluntary ConsumerProduct Information Labeling Pro-gram administered by the Departmentwill function. The Department deter-mined that the program would be in-stituted on a limited pilot projectbasis. The goal of this program is tomake available to consumers, at thepoint of sale, information on consumerproduct performance in an understan-dable and useful form.

Other Government agencies--suchas the Federal Trade Commission, theConsumer Product Safety Commis-sion, and the Environmental Protec-tion Agency-also are proposing orconsidering various information disclo-sure requirements for consumer prod-ucts. In many cases, however, it wouldbe desirable to provide on a singlelabel information of interest to con-


8254


sumers about a wider range of attri-butes than is being considered for la-beling requirements by any oneagency. For selected consumer prod-ucts, the Department of Commerce de-sires to make CPILP labels compatiblewith the corresponding labeling re-quirements or recommendations pro-mulgated by other agencies, so thatthe information disclosure require--ments. of those agencies can be satis-fied by participation in CPILP. Insuch cases, product labeling would besimplified for manufacturers partici-pating in CPILP since compliance withthose other agency requirementswould be assured. Product comparisonby consumers at the point of sale alsowould be simplified since all of the In-formation- would be on a single labelhaving a uniform, consumer-orientedformat.

The final sentence in § 16.2(b) of theCPILP procedures states that: "Theprogram seeks to avoid the duplicationof other Federal programs underw1ilch performance characteristics arelabeled by exempting those perfor-mance characteristics from this pro-gram." In view of the above stateddesire of the Department Qf Com-merce to include on CPILP labels per-formance characteristics which are in-cluded in other Federal labeling pro-grams, a proposed amendment waspublished in the FEDERAL REGisTER (42FR 64909, December 29, 1977) toamend the final sentence of § 16.2(b)of the CPILP procedures. It was em-phasized in the preamble to the pro-posed amendment that CPILP Is a vol-untary program, and that manufactur-ers can comply with the labeling re-quirements of other Federal agencieswithout participating in CPILP. Inter-ested persons were invited to submitwritten comments on the proposedamendment on or before January 30,1978.

Comments concerning the proposedamendment were received from twosources. A card dated January 3, 1978,from Amy Beckett, 1310 East Meadow-mere, Springfield, Mo. 65804, endorsed"the Commerce Department proposalto coordinate Federal product labelingrequirements." The second letterdated January 16, 1978, was receivedfrom Lawrence H. Hodges, Vice Presi-dent, Technical Affairs, J I Case Co.,700 State Street, Racine, Wis. 53404.This letter states, "J I Case Co. sup-ports the Department's proposal thatcertain mandated labeling required bythe regulations of other regulatoryagencies and the labeling required byvoluntary participants in the DoC's'Voluntary Consumer Product Infor-mation Labeling Program (CPILP) be,in some instances, incorporated intoone label."'

Copies of the two letters of commentreceived, and a summary and analysisof these letters are available for public

inspection and copying in the Depart-ment's Central Reference and RecordsInspection Facility, Room 5317, MainCommerce Building, 14th Street be-tween E Street and ConstitutionAvenue NW., Washington, D.C. 20230.

For purposes of clarity, the amend-ment language was changed slightly sothat the amendment consists ofadding a new sentence at the end of§ 16.2(b). Accordingly, the CPILP pro-cedures are hereby amended as setforth below.

Nos.-The Department of Commerce hasdetermined that adoption of this amend-ment does not constitute a malor propo=lrequiring preparation of an EconomicImpact Statement under Executive Order11821. as amended by Executive Order11949. and Office of Management andBudget Circular No. A-107.

Issued: February 24, 1978.

JORDAN J. BARUCH,Assistant Secretary forScience and Technology.

§ 16.2 [Amended]15 CFR Part 16 is amended by

adding the following sentence at theend of § 16.2(b):

However, where the Federal agency con-cerned agrees, the Department of Com-merce may include information about thoseperformance characteristics In CPILP labelsif, by doing so, product comparison at thepoint of sale is simplified for consumersand the complexity of product labeling Is re-duced for the manufacturers by enablingthem to comply with the labeling require-ments of other Federal agencies throughparticipation in CPILP:

Section 16.2(b), as amended, willread in its entirety as follows:

§ 16.2 Description and goal of program.

(b) The program involves voluntarylabeling by enrolled participants of se-lected categories of consumer productswith information concerning selectedperformance characteristics of thoseproducts. The performance character-istics selected are those that are of de-monstrable importance to consumers,that , consumers cannot evaluatethrough mere inspection of the prod-uct, and that can be measured objec-tively and reported understandably to-consumers. The consumer productscovered include those for which incor-rect purchase decision can result in fi-nancial loss, dissatisfaction, or incon-venience. The program seeks to avoidthe duplication of other Federal pro-grams under which performance char-acteristics are labeled by exemptingthose performance characteristicsfrom this program. However, wherethe Federal agency concerned agrees,the Department of Commerce may in-clude information about those perfor-mance characteristics in CPILP labels

if, by doing so, product comparison atthe point of sale Is simplified for con-sumers, and the complexity of productlabeling is reduced for the manufac-turers by enabling them to complywith the labeling requirements ofother Federal agencies through par-ticipation in CPILP.

(FR Doc. 78-5398 Filed 2-28-78; 8:45 am]

[4210-01]

7iii 24-Housing and Urban Development

SUBTITLE A-OFFICE OF THE SEC.ETARY

EDocket No. R-78-510]

PART O-STANDARDS OF CONDUCT

AGENCY: Department of Housingand Urban Development-Office ofthe Secretary.

ACTION: Final rule.SUMMARY: These amendments pro-hibit discrimination by employeesagainst other employees of the De-partment because of race, color, reli-gion, national origin, sex, or age. Inaddition, employees on official busi-ness are prevented from attendingmeetings which exclude persons forthese reasons. The changes are neededto carry out statutory provisions andthe requirements of Executive Order11222.

EFFECTIVE DATE: March 1, 1978.ADDRESS: Rules Docket Clerk, De-partment of Housing and Urban De-velopment, Office of the GeneralCounsel. Room 5218, 451 SeventhStreet SW., Washington. D.C. 20410.

FOR FURTHER INFORMATIONCONTACT:

John Waller, 202-755-6550.

SUPPLEMENTARY INFORMATION:Because these standards for prohibit-ing discrimination in the employmentof personnel and the administration ofHUD programs relate to agency man-agement and personnel, notice andpublic procedure are unnecessary. Inaddition, good cause exists for makingthe changes effective upon publicationin the FmRAL Rrczsrrx

A finding of inapplicability regard-ing Environmental Impact has beenprepared in accordance with the Na-tional Environmental Policy Act of1969 and HUI Handbook 1390.1. Astatement of inapplicability has alsobeen prepared In accordance with Ex-ecutive Order 11821 with respect toeconomic impact. Copies of thesestatements- are available in the RulesDocket File which can be inspectedand copied in the Office of the RulesDocket Clerk at the above address.

Accordingly, 24 CFR § 0.735-202 isamended by adding three new para-graphs which read as follows:


8255

8256

§ 0.735-202 Proscribed actions.

(g) Discrimination against'any otheremployee, or applicant for employ-ment, on the ground of race, color, re-ligion, national origin, sex, or age;

(h) Excluding any person from par-ticipating in, or denying to any personthe benefits of, any program or activ-ity administered by the Departmenton the ground of race, color, religion,sex, or national origin; or

(i) While conducting official busi-ness, knowingly participating in or at-tending any segregated meetings, ormeetings held in segregated facilities,from which persons are excluded be-cause of race, color, religion, sex, ornational origin.(18 U.S.C. 201; E.O. 11222 of May 8, 1965, 30FR 6469; 5 CFR 735.104.)

These amendments were approvedby the Civil Service Commission onAugust 8, 1977.

Issued at Washington, D.C., Febru-ary 21, 1978.

PATRICIA ROBERTS HARRIS,Secretary, Housing and

Urban Development[DR Doc. 78-5311 Filed 2-28-78; 8:45 am3

[4410-01]

Title 28-Judicial Administration

CHAPTER I-DEPARTMENT OF JUSTICE

[Order No. 769-78]

PART O-ORGANIZATION OF THEDEPARTMENT OF JUSTICE

Subpart H-Antitrust Division

DELEGATION OF CERTAIN FUNCTIONSUNDER THE ENERGY POLICY AM CON-SERVATION ACT

AGENCY: Department of Justice.ACTION: Final rule.

SUMMARY: This order delegates tothe Assistant Attorney General incharge of the Antitrust Division theauthority to act on behalf of the At-torney General with respect to carry-Ing out the provisions of sections 252and 254 of the Energy Policy and Con-servation Act, 42 U.S.C. 6272, 6274,and to voluntary agreements signedpursuant to section 252.

The amendment effected by thisorder will enable the Department ofJustice to be responsive to problemsarising under voluntary agreementsand plans of action entered into or de-veloped under section 252 of the Act.


EFFECTIVE DATE: February 20,1978.FOR FURTHER INFORMATIONCONTACT.

John H. Shenefield, Assistant Attor-ney General, Antitrust Division, De-partment of Justice, Washington,D.C. 20530, 202-739-2401.

SUPPLEMENTARY INFORMATION:Section 252 of the Energy Policy andConservation Act assigns to the Attor-ney General the responsibility of ap-proving, reviewing and monitoring vol-untary agreements and plans of actiondeveloped and executed by individualsand business entities in order to assistin the implementation of the Agree-ment on an International Energy Pro-gram, which was signed by the UnitedStates of America on November 18,1974, and which, among other things,was entered into in order to create avehicle to equitably allocate petroleumand petroleum products between sig-natory countries in the event of ashortage of petroleum in world mar-kets and to develop information sys-tems concerning international suppliesof petroleum and petroleum products.Section 252(f) of the Energy Policyand Conservation Act, 42 U.S.C.6272(f),-makes available to any persona defense "to any civil or criminalaction brought under the antitrustlaws" that the person was acting pur-suant to a voluntary agreement orplan of action authorized under sec-tion 252. Section 254 of the EnergyPolicy and Conservation Act autho-rizes the Secretary of the Departmentof Energy after consulting with theAttorney General to provide informa-tion and data related to the energy in-dustry to the International EnergyAgency, an international, administra-tive body established under thd Inter-national Energy Program.

The amendment effected by thisOrder will enable the Department ofJusti6e to be responsive to problemsarising under voluntary agreementsand plans of action entered into or de-veloped under section 252 of theEnergy Policy and Conservation Act,42 U.S.C. 6272, while maintaining Itsvigdrous, continuing supervision of thedevelopment and execution of suchvoluntary agreements and plans ofaction, by delegating to the AssistantAttorney General in charge of theAntitrust Division responsibilitieswhich involve the expertise of theAntitrust Division concerning competi-tive issues.

By virtue of the authority vested inme by 28 U.S.C. 509, 510 and 5 U.S.C.301, section 0.41 of Subpart H of Part

O of Chapter I of Title 28, Code ofFederal Regulations, is amended byadding a new paragraph (i) at the endthereof, to read as follows:

§ 0.41 Special functions.

(1) Acting on behalf of the AttorneyGeneral with respect to sections 252and 254 of the Energy Policy and Con-servation Act, 42 U.S.C. 6272, 6274, In.cluding acting on behalf of the Attor-ney General with respect to voluntaryagreements or plans of action estab-lished pursuant to section 252 of thatAct.

Dated: February 20, 1978.GRIFFIN B. BELL,Attorney General.

LFR Doc. 78-5285 Filed 2-28-78; 8:45 am]

[3810-71]

Title 31-National Defense

CHAPTER VI-DEPARTMENT OF THE NAVY

SUBCHAFTER B-NAVIGATION

PART 706-CERTIFICATIONS AND EXEMPTIONSUNDER THE INTERNATIONAL REGULATIONSFOR PREVENTING COLLISIONS AT SEA, 1972

USS CincinnatiAGENCY: Department of the Navy,DOD.ACTION: Final rule.

SUMMARY: The Department isamending Its rules for certificationsand exemptions under the Interna-ional Regulations for Preventing Col-

lisions at Sea, 1972, to reflect that theSecretary of the Navy has determinedthat USS Cincinnati (SSN 693) is avessel of the Navy which, due to Itsspecial construction and purpose,cannot comply fully with certain pro-visions of the International Regula-tions for Preventing Collisions at Sea,1972 (72 COLREGS) without interfer-ing with Its special function as a navalsubmarine. The intended effect of thisrule is to warn mariners on waterswhere the 72 COLREGS apply.EFFECTIVE DATE: February 28,1978.

FOR FURTHER INFORMATIONCONTACT:Lt. Comdr. M. D. Selders, JAGC,USN, Admiralty Division, Office ofthe Judge Advocate General, NavyDepartment, Washington, D.C.20370, 202-694-5188.



SUPPLEMENTARY INFORMATION:This amendment to Part '06 providesnotice that the Secretary of the Navyhas certified that USS Cincinnati(SSN 693) is a vessel of the Navy'which, due to its special constructionand purpose, cannot comply fully with'2 COLREGS: Rule 21(c) regardingthe arc of visibility and location of thestem light; annex I, section 2(a)(i) re-garding the height of the mastheadlight; -annex I, section 3(b) regardingthe location of the sidelights; annex I,section 2(k) regarding the height ofthe anchor lights; and, rule 30(d)(i) re-garding the display of two all roundred lights when aground. Full compli-ance with the above-mentioned '12COLREGS provisions would interferewith the special function of the ship.The Secretary of the Navy has alsocertified that the above-mentioned

lights are located In closest possiblecompliance with the applicable '2COLREGS requirements.

Notice Is also provided to the effectthat USS Cancinnatt (SSN 693) Is amember of the SSN 688 class of shipsfor which certain exemptions, pursu-ant to '2 COLREGS Rule 38. havebeen previously authorized by the Sec-retary of the Navy. The exemptionspertaining to that class, found In theexisting tables of § 706.3, are equallyapplicable to USS Cincinnati.

Since this amendment pertains to amilitary and foreign-affairs functionof the United States, the rulemakingrequirements of 5 U.S.C. 553 do notapply. Accordingly, 32 CFR Part '106 Isamended as follows:§ 706.2 [Amended]

1. The third Table One of § 706.2 Isamended by Inserting the following be-

tween "USS Omaha, SSN-692 6.10"and "USS George Washington, SSBN-598 4.11":

DIstance In meters offorward masthead

Venel Number light below minmumrequired helsht

1 2(a)(D.annex I

USS - 3.49Cincnnai.

2. The fourth Table Three of § 706.2Is amended by inserting the followingbetween "USS Omaha SSN-692 236*115" 252" 4.2 6.1 2.0 1.6 below" and"USS George 'Washington SSBN-598240° 118' 255" 3.8 46.0 2.1 0.6 below":

Sidelights. Stern light, Forward anchor Anchor Ughts%Masthead Sidellghts, arc Stern light. arc dLtanwe Inbzard dstance for. light, height relationship ofVessel Numbe light, arc of or v~slillyt

of vlslb~lbty of alp'salle ward of stern above hun In aft light tovisibility; rule rule 21(b) rule 21(c) In meters; , c. In meters; meters: see, forward lfht

21(a) 3(b). annex I rule 21(c) 2(K). annex I In meters; see.

2CK). annex I

USS Cincinnati SSN-693 209" 4.3 6.1 3.4 1.6 below.* a 9 a ea

3. Note 3 of Table Four of § 706.2 Isamended by revising the existing noteto read as follows:

Nors 3.-The second masthead light re-quired by rule 23(a)(iI) and the lights re-quired by rules 24, 2L7, and 30(d)(i) are notinstalled on submarines.

Effective date: The effective date ofthis amendment will be February 28,1978.

Dated: February 16, 1978.W. GRAHAm CLAYTOR, Jr.,

Secretary of the Navy.EFR Do. 78-5380 Filed 2-28-78; 8:45 am]

[3710-92]Title 33-Nvigation and Navigable Waters

CHAPTER fl-CORPS OF ENGINEERS,DEPARTMENT OF THE ARMY

[ER 1130-2-3241

PART 209-ADMINISTRATIVE PROCEDJRESCoordination of Hydroelectric Power

Operations With Power Marketing Agencies

AGENCY: US. Aimy Corps of Engi-neers, DOD.ACTION: Final rule._SUMMARY: This regulation statesthe Corps of Engineers policies andprocedures on coordination of hydro-electric power operations with theFederal Government power marketingagencies. The regulation is beingissued in response to a recommenda-

tion contained within a ComptrollerGeneral of the United States Reportto- the Congress, dated January 2,1976..This regulation will provide formore effective coordinatlbn of poweroperations between the Corps of Engi-neers and the Federal power market-lng agencies.EFFECTIVE DATE: March 1, 1978.FOR FURTHM INFORMATIONCONTACT.

ir. Kyle Jones, Construction-Oper-ations Division, Civil Works Direc-torate, Office of the Chief of Engi-neers, Washington, D.C. 20314, 202-693-6975.

SUPPLEMENTARY INFORMATION:On June 7, 1977, the Corps of Engi-neers published a notice of proposedrule in the FEDzRAL Rmis-R, 42 FR29025 (33 CFR 209-141), to establishpolicy and procedures for the coordi-nation of hydroelectric power oper-ations with power marketing agencies.Interested persons were invited tosubmit written comments, suggestions,or objections on or before July 15,1977.

One comment was received. It wassuggested that an operation rule curvebased on lake elevation be developedfor each reservoir. The curves arepresently develoted In accordancewith the existing policy, therefore, in-clusion in this regulation Is not consid-ered necessary.

To clarify the respective roles of theCorps and power marketing agencies, a

second policy paragraph was addedunder section 209.141(e). The para-graph states that the Corps is respon-sible for operating- the hydroelectricpower projects and providing informa-tion affecting cost and power availabil-Ity to the marketing agencies. Market-ing the generated power declaredexcess to project needs and recoveringFederal Investment are the responsi-bilitles pf the marketing agencies. Thisnew paragraph does not establish newpolicy but simply states existingpolicy.

Due to Executive Department reor-ganization, references to the Depart-ment of Interior have been deletedfrom the preamble. All references tonarketing agencies are intended torefer to Federal agencies within theexecutive branch directly responsiblefor marketing power generated atCorps of Engineers- multiple-purposeprojects with power.

The Chief of Engineers has deter-mined that this rule does not containa major proposal requiring prepara-tion of an inflation impact statementunder Executive Order 11821 and.OMB Circular A-107 (statutory au-thority Pub. L. 90-483).

Dated: February 21, 1978.JAsS N. ELMS.

Cofone Corps of Engineers,Executive Director, Engineer

Staff.In consideration of the above Part

209 Is amended by adding 209.141 asfollows:


8257

8258 RULES AND REGULATIONS

§209.141 Coordination of hydroelectricpower operations with power market-Ing agencies.

(a) Purpose; This regulation estab-lishes policies and procedures for co-ordinating the operation of the Corpsof Engineers' hydroelectric generatingfacilities with the power marketingagencies.

(b) Applicabiltz. This regulation ap-plies to all civil works field operatingagencies (FOA) having generating fa-cilities producing marketable electricpower.

(c) References. (1) Section 5, Pub. L.534, 78th Congress, Flood Control Actof 1944, December 22, 1944 (58 -Stat.889).

(2) Section 302, Pub. L. 95-91, 95thCongress, Department of Energy Or-ganization Act, August 4. 1977 (91Stat. 565).

(d) Background. Section 5 of the Actof December 22, 1944 (Pub. ,. 534,78th Congress), provides that electricpower and energy generated at reser-voir projects under the control of theDepartment of the Army and in theopinion of the Secretary of Army notrequired in the operation of such pro-Jects shall be delivered to the Secre-tary of Iiterior for transmittal anddisposal in a manner to encourage themost widespread use thereof at thelowest possible rates to consumers con-sistent with sound business principles.Section 302 of the Department ofEnergy Organization Act (Pub. L. 95-91) transfers all functions of the Sec-retary of Interior under section 5 ofthe 1944 Act to the Secretary ofEnergy together with all other func-tions of the Secretary of Interior, andofficers and components of the De-partment of 'the Interior, with respectto the Southeastern Power Adminis-tration; the Southwestern Power Ad-ministration; the Alaska Power Ad-ministration; the Bonneville PowerAdministation; and the power market-ing functions of the Bureau of Recla-mation.

(e) PoZicies. (1) The Corps is respon-sible for operating the hydroelectricpower projects and providing informa-tion affecting cost and availability ofpower to the power marketing agen-cies. Marketing the generated powerdeclared excess to the needs of theprojects and recovering Federal invest-ment are the responsibilities of thepower marketing agencies.

(2) All FOA Commanders will devel-op, in coordination with their respec-tive power marketing agency, a systemfor exchanging operating information.The system will include general oper-ating information and information onconditions that could substantiallyaffect costs or power availability. -o

(f) Delegation. Responsibility for co-ordinating the exchange of informa-tion may be delegated to the DistrictEngineer at the discretion of the Divi-sion Engineer.

(g) Procedures. (1) Specific require-ments.

(I) Continuing. Prompt written noti-fication will be provided to the appro-priate power marketing agency eachtime a change in power operations orconditions which could substantiallyaffect costs or power availability is an-ticipated.

(ii) AnnuaL Annually, when nochanges in power operations or costsare expected for the succeeding 1Z-month period, the marketing agencywill be notified of that fact In writing.

(2) FOA responsibility. The FOA di-rectly responsible for communicatingwith the marketing agency will devel-op appropriate reporting procedures Incoordination with that agency.

(FR Doe. 78-5352 Filed 2-28-78; 8:45 am]

[8320-01Titl 41-Public Contracts and Property

Management

CHAPTER 8-VETERANS ADMINISTRATION

PART 8-4--SPECIAL TYPES AND METHODS OFPROCUREMENT

Architect-Engineer Evaluation Boards

AGENCY: Veterans Administration.

ACTION: Final regulation.

SUTMARY: This part Is being revisedto change the composition of the ar-chitect-engineer evaluation board ap-pointed by the Assistant Administra-tor for Construction -in order to in-crease the flexibility of that board.

EFFECTIVE DATE: February 28,1978.FOR FURTHER INFORMATIONCONTACT:

Clyde C. Cook, Supply Service, Vet-erans Administration, Washington,D.C. 20420, 202-389-2334.

SUPPLEMENTARY INFORMATION:Section 8-4.1004-1- is revised in orderto permit representation on the archi-tect-engineer evaluation board fromany discipline considered necessary.This revision is intended to increasethe efficiency of the architect-engi-neer evaluation by providing moreflexibility in the composition of theboard.

Since the change revises internal ad-ministrative matters, compliance withthe provisions of 38 CFR 1.12 relatingto regulatory development is consid-ered unnecessary.

Approved: February 21, 1978.By direction of the Administrator.

RuFUs H. WrLSON,DeputyAdministrator.

In § 8-4.1004-1, paragraph (a) is re-vised as follows:

§8-4.1004-1 Establishment of architect-engineer evaluation boards.

* C * C C

(a) The evaluation board will bechaired by either the Chairman orVice Chairman of the Architect-Engi-neer Evaluation Board, or the projectdirector will be designated to act whennecessary. The board's members, asappointed by the Assistant Adminis-trator for Construction, will includethe appropriate project director ordesignated project supervisor and asmany qualified professional architectsor engineers from the Office of Con.struction technical services as may beconsidered appropriate for the par-ticular project. Additional membersfrom the Office of ConstructionHealth Care Facilities Service or fromother Veterans Administration depart-ments and staff offices will be desig-nated for special type projects whenappropriate.

* * ' * *

[FR Dec. 78-5388 Filed 2-28-78:8:45 am]

[4110-35]

Title 42-Public Health

CHAPTER IV-HEALTH CARE FINANCING AD-MINISTRATION, DEPARTMENT OF HEALTH,EDUCATION, AND WELFARE

PART 405--FEDERAL HEALTH INSURANCE FORTHE AGED AND DISABLED

Coverage and Reimbursement of Rural HealthClinic Services

AGENCY: Health Care Financing Ad-ministration (HCFA), HEW.ACTION: Final regulation with com-ment period.

SUMMARY: These regulations setforth the conditions for coverage andreimbursement of rural health clinicserv- Ices under the Medicare program.They implement some of the provi-sions of the Rural Health Clinic Ser-vices Act of 1977 (Pub. L. 95-210),which Is effective for Medicare onMarch 1, 1978. The intent Is to In-crease the availability of primary andemergency care services in rural areasthat do not have enough.physicians.DATES: Effective March 1, 1978. Com-ments by March 31, 1978.

Notice of proposed rulemaking has beenwaived, In order to meet the statutory effec-tive date. However, we will consider writtencomments, suggestions, or objections re-ceived within 30 days and will revise the reg-ulations, If necemary. In commenting pleaserefer to file code MAB 63 RC, Agenciea andorganizations are requested to submit com-ments in duplicate.ADDRESSES: Address comments to:Administrator, Health Care FinancingAdministration, Department of


8258


Health, Education, and Welfare, P.O..Box 2372, Washington. D.C. 20013.Comments will be available for publicinspection beginning approximately 2weeks after publication, in Room 5225of the Department's offices at 330 CStreet SW., Washington, D.C., onMonday through Friday of each weekfrom 8:30 a-m. to 5 pam, 202-245-0950.

FOR FURTHER INFORMATIONCONTACT.

Marinos Svolos, Medicare Bureau,HCFA, Room 106, East High Rise,6401 Security Boulevard, Baltimore,Md. 21235, 301-594-9315.

SUPPLEMENTARY INFORMATION:The regulation implements the provi-sions of Pub. L. 95-210 dealing withthe coverage and reimbursement ofservices furnished by rural health clin-ics under the Medicare program. It Iseffective for covered services fur-nished by a certified rural healthclinic beginning March 1, 1978^ Regu-lations setting forth the requirementsa facility must meet to be certified as arural health clinic were published inthe F EDRAL REGISER (43 FR 5373) onFebruary 8, 1978. The provisions ofPub. T. 95-210 are effective for Medl-aid covered services furnished by certi-fied rural health .clinics beginningJuly 1, 1978.

A notice of proposed rulemakinggoverning the coverage and reimburse-ment of rural health clinic servicesunder medicaid will be published sepa-rately.

PURPOSE OF THE PROGRAM

Because of a lack of physicians,many areas of the country, particular-ly rural areas, have turned to special-ly-trained primary care practitionersto provide their health -care needs.Many of these practitioners work inclinics under the general supervisionof a physician and furnish a widerange of health care services many ofwhich could previously only be reim-bursed by Medicare if provided by aphysician. These primary care practi-tioners are usually called physician as-sistants and nurse practitioners. Theservices nurse practitioners and physi-cian assistants generally provide areprimary care services under the super-vision of a physician.

The use of nurse practitioners andphysician assistants in an expandedrole to provide primary care healthservices ordinarily provided by physi-cians has become more widespread inrecent years. Until the enactment ofPub. L. 95-210, however, the Medicarelaw limited coverage of primary careservices to those furnished by physi-cians, with only certain limited excep-tions. Since the services provided bythe nurse practitioners and physicianassistants to Medicare beneficiarieswere not generally eligible for Medi-care reimbursement, these services

were either paid for out-of-pocket bythe beneficiary, supported through agrant, or treated by tlje clinic as baddebts or charity. As a result of theseand other factors, several rural healthclinics experienced serious financialproblems. And, Individuals who livedin such areas often did not have accessto adequate health care services.Taking account of the severe healthcare problems resulting from the lackof physicians in many rural areas,Congress enacted Pub. L. 95-210 whichamended the Medicare law to extendMedicare's coverage to permit reim-bursement for services provided byqualified nurse practitioners and phy-sician assistants In certified ruralhealth clinics.

MAJOR REGULATION PROVISIONS

1. COVERAGE OF RURAL HEALTH CLINICSERVICES

These regulations define the coveredservices furnished by a rural healthclinic for which payment may be madeby the Medicare program on behalf ofIts beneficiaries under Pub. L. 95-210.These include:

(1) Physicians' services including re-quired physician supervisory servicesof nurse practitioners and physicianassistants; '

(2) Services and supplies furnishedas an incident to a physician's profes-sional services;

(3) Services of physician assistants,nurse practitioners, nurse midwivesand specialized nurse practitioners;(4) Services and supplies furnishedas an incident to a nurse practitioner'sor physician assistant's services; and

(5) Visiting nurse services on a parf-time or intermittent basis to home-bound patients (limited to areas Inwhich there is a shortage of homehealth agencies).

Coverage of rural health clinic ser-vices is based largely on long-estab-lished Medicare coverage policy. Forexample, physicians services and ser-vices incident to a physician's servicesare defined in these regulations In ac-cordance with the long-standing defi-nitions of these terms. As contemplat-ed under the law and congressionalcommittee reports on Pub. L. 95-210,the regulations specify that coveredservices performed by a physician atthe clinic are rural health clinic ser-vices which, accordingly, are reimburs-able only to the clinic. Covered ser-vices performed by a physician outsidethe clinic are also covered rural healthclinic services If the physician Is com-pensated for the services by the clinic.If the physician is not so compensated,the covered services are reimbursableto the patient or the physician (if as-signment is accepted) on the basis ofreasonable charges. While the physi-cian and clinic are free to choose themanner in which covered physicians'

services outside the clinic will be paidfor by Medicare, the Department ex-pects that there will be a writtenagreement between the physician andclinic which reflects their decision onthis matter. The Department alsoplans to closely monitor these situa-tions to assure that no program abuseoccurs.

The regulations provide that ser-vices furnished by nurse practitioners,physician assistants, nurse midwivesand specialized nurse practitioners arecovered, whether or not the clinic isunder the full-time direction of a phy-sician, If the individual is legally per-mitted under State law to performsuch services and meets the education,training, and experience requirementsset forth in the regulations. In defin-ing services and supplies which are

furnished incident to a nurse practi-tioner's or physician assistanV's ser-vices In the clinic, the regulationsadapt the requirements which must bemet for services to be covered as inci-dent to a physician's services. Essen-tially, the services and supplies mustbe of a type that:

(1) Would be covered if furnished asan incident to a physician's services;

(2) Is commonly furnished in physi-cians' offices;, and

(3) Is commonly rendered withoutcharge or included in the clinic's bill

Such services and supplies must alsobe furnished as an incident to a nursepractitioner's or physician assistant'sservice. To be covered under this pro-vision, services must be furnished byan employee of the clinic and underthe direct supervision of a nurse prac-titioner, physician assistant, or physi-clan.

The regulations also define Medi-care's coveragd of visiting nurse ser-vices furnished to homebound patientsby rural health clinics that are locatedIn areas where there Is a shortage ofhome health agencies.

In such cases, part-time or Intermit-tent nursing services provided by aregistered nurse or licensed practicalnurse are covered. Where possible,definitions have been used which aresimilar to the definitions used for com-parable requirements under Medi-care's home health benefit.

The regulations stipulate that theItems and services a clinic offers whichare not covered under the Medicareprogram are not eligible for Medicarereimbursement. These include, for ex-ample, routine dental services, andpreventive services.

2. nMURSEMENT

Pub. Is. 95-210 provides that Medi-care payment for covered rural healthclinic services will be "* * 80 percentof costs which are reasonable and re-lated to the cost of furnishing.suchservices or on such other tests of rea-sonableness as the Secretary may pre-

FEDERAL REGISTER, VOL 43, NO. 41-WEDHESDAY, MARCH 1, 1978

8259


scribe in regulations, including thoseauthorized under section 1861(v)(1)(A)* I'." Clinics which are an integralpart of a hospital will be paid in accor-dance with the reimbursement meth-ods and principles used to pay for ser-vices furnished in a hospital. To imple-ment this provision for those clinicswhich are not part of a hospital (inde-pendent clinics), the Department willinitially use an all-inclusive ratemethod of payment designed to payfor Medicare's share of actual costs, tothe extent that they are reasonable.

The Department's objectives in se-,lecting the initial payment method forindependent rural health clinics havebeen:

(1) To provide an equitable level ofpayment;

(2) To avoid imposing undue datacollection, reporting or other adminis-trative burdens on the clinic; and

(3) To permit the Health Care Fi-nancing Administration to administerthe benefit in a way that does notimpede clinic operation.

It is the Department's intent tophase out the initial payment methodbeginning in March 1979, and to re-place it with a prospective method ofpayment that provides incentives forefficient operation.

ALL-INcLUsIvE RATE OF PAYMdENT

The regulations describe the all-in-clusive rate method of payment to beused initially. This method of pay-ment requires a clinic to submit, at thebeginning of its reporting year, abudget forecast of costs and anticipat-ed visits. Based upon the clinic's esti-mates the Medicare fiscal interme-diary (called "carrier" in the regula-tions) determines an all-inclusive rateper visit for the clinic by dividing thetotal allowable expenses by the totalanticipated clinic and home visits.Eighty percent of this rate, after sub-tracting the amount of any deductiblefor which the Medicare patient is re-sponsible, is paid to the clinic when aMedicare patient is furnished a cov-ered service by a clinic physician, phy-sician assistant, nurse practitioner,nurse midwide, specialized nurse prac-titioner, or visiting nurse.

ADJUSTMENT OF PAYMENT

The regulations require that duringeach reporting period the fiscal inter-mediary will periodically review andadjust the all-inclusive rate, if neces-sary, to bring current payments intoagreement with current expenses.Such revisions will also be performedif requested by the clinic. At the endof the reporting period (usually 1year), there will be a reconciliation ad-justment based on a report submittedby the clinic of its actual costs andvisits for the period. Principally, usingthis information, the fiscal interme-diary will determine the amount of

payment due the clinic for covered ser-vices furnished Mediare patients. Anydifference between the total paymentdue the clinic and the total paymentsfor services furnished made during thereporting period is to be paid as fol-lows:

(1) If the clinic has been under paid,the fiscal intermediary will make alump-sum payment for the amountdue.

(2) If the clinic has been over paid,the intermediary willarrange a repay-ment plan which generally seeks to re-cover the money due in a period not toexceed 1 year. A longer repaymentperiod may be permitted if the inter-mediary is satisfied that unusual cir-cumstances exist, e.g., to avoid severefinancial hardship on the clinic.

AxLowABLE COST

The regulations define allowablecost for rural health clinics to includethose costs which are reasonable inamount and necessary for the efficientdelivery of rural health clinic services.These expenses include reasonablecompensation for the services of phy-sicians, physician assistants, nursepractitioners and other health carepersonnel, purchased services to theextent reasonable, and reasonableoverhead costs related to the coveredservices, including depreciation costs.In determining whether specific ex-penses are allowable, the regulationsstipulate that the principles of rein-bursement for provider costs (Subpart") of the Medicare Regulations, 42CFR, Part 405) will be followed. Thus,for example, reasonable amounts at-tributable to uncollected deductiblesand coinsurance for which the cliniccharges and makes reasonable effortsto collect will be recognized as part ofthe reconciliation process.

TESTS OF REASONABLENESS

Under the regulations, allowablecosts of a rural health clinic are sub-ject to tests of reasonableness devel-oped by HCFA and the carrier. Inpart, these tests include guidelineswhich are intended to identify situa-tions where costs will not be allowablewithout further justification by theclinic. These guidelines may include,but are not limited to, minfium pro-ductivity standards for physicians,physician assistants, nurse practition-ers, nurse midwives, specialized nursepractitioners and visiting nurses, andguidelines to assess the reasonablenessof levels of administrative expense.Additionally, the tests may includelimits established based on costs esti-mated to be reasonable for the provi-sion of clinic services. Such limits maybe established with respect to totaldirect or indirect costs, or costs of spe-cific items or groups of items or ser-vices.

Limits will be designed to assurethat program payment is reasonable

as required by the law. The limit willtake into account the frequency andrange of services furnished by theclinic and the amounts paid by theMedicare program for comparable ser.vices under other provisions of thelaw.

REPOnRTn REQUIREMENTS

It is the Department's intention tomake reporting requirements assimple as possible so that all qualifiedrural health clinics will be able tocomply with them. For the most part,reports will consist of a relativelysimple list of board categories of ex-penses, such as salaries, purchased ser-vices, and administrative expenses,and basic data on clinic utilization.Rural health clinics will not be askedto submit extensive reports, such asthose required of hospitals.

FurTuR RmEmBuESEMENT METHOD

Payment on the basis of the all-in-clusive rate per visit (described above)will provide the experience and datathe Department needs to develop aprospective payment method intendedto provide incentives for efficient op-eration. The Department encouragessuggestions for a prospective reimbuseapproach, particularly as to the basisof payment, how the payment shouldbe determined, and how incentives canbe provided to encourage cost effectiveand efficient operations. After consid-eration of the various alternative ap-proaches, the Department intends topublish a notice of proposed rulemak-Ing followed by final regulations. Ourcurrent plan is to publish a notice ofproposed rulemaking by October 1978,with final rules published and In effectby March 1979. In no event will theinitial payment method be used for re-porting periods beginning after March1, 1980.

ADMINISTRATION

The Department intends to haveMedicare fiscal intermediaries deter,mine clinic payment rates and to adju-dicate claims for services furnished byrural health clinics. (Since these inter-mediaries will be administering thisnew benefit under Part B of the Medi-care program, they are referred to inthese regulations as carriers with re-spect to their duties under the ruralhealth clinic benefit.) Initially, therewill be five intermediaries, each han-dling a multi-state region. The Depart-ment further intends to encourageStates to utilize the same organiza-tions to administer the rural healthclinic benefit under the MedlcaJd pro.gram.

OTHER PROVISIONS

The regulations also address suchmatters as the agreement the clinic isrequired to'file with the Secretary,


8260

suspensions, terminations and appeals.Under the agreement the clinic fileswith the Secretary, the clinic agrees tonot charge Medicare beneficiaries forcovered services except for any unmetdeductible amounts and for coinsur-ance. the clinic also agrees to refundto beneficiaries as promptly as possi-ble any amounts incorrectly collectedfrom them.

The Department recognizes thatthere may be a heavy initial workloadon the State agencies responsible forcertifying rural health clinics andthat, as a result, delays may occur inprocessing clinic requests for certifica-tion. Therefore, the Secretary intendsto take this into consideration in es-tablishing the effective date of hisagreement with the clinic in order toassure that Medicare beneficiaries arenot disadvantaged by such delays.Thus for example, if a clinic submitsits application to the State agencyprior to'March 1, 1978, but the processfor certifying the clinic and complet-ing the agreement forms is not accom-plished until the end of March, theSecretary will make that agreementeffective as of March 1, 1978.

The procedures for appeals include.ppeals on the part of facilities with

respect to whether they qualify asrural health clinics under the Medi-care program, appeals by facilities asto the amount of reimbursement duethem, and appeals by beneficiaries.Certain minor-amendments to SubpartB are also included In this amend-ment. Minor revisions to other sub-parts of Part 405 will be publishedvery soon to conform them to changesin Medicare's coverage provisions as aresult of the enactment of Pub. L. 95-210.

WAvIE OF PROPOSED RULMUING

The statute (Pub. L. 95-210) pro-vides that Medicare reimbursement isavailable beginning March 1, 1978.Moreover, the legislative history con-tains numerous references to theurgent need for timely implementa-tion of the statute. Therefore, the Sec-retary has determined that there isgood cause to waive Notice of Pro-posed-Rulemaking prior to issuing thisregulation and to make it effectiveMarch 1, 1978

Although rulemaking has beenwaived, public comments and recom-mendations on the regulations are in-vited and will be evaluated with a viewtowards possible revision. On January17, 1978, the Department published anotice in the FERAL REGISTER (43 FR24 12) stating that drafts of the regula-tions would be available upon requestAll comments from interested partieshave been considered in preparing thisregulation.

42 CFR Part 405 is amended as fol-lows:

1. Section 405.231 is amended byadding a new paragraph (n) as follows:

§405.231 'Medical and other health ser- Sec.vices; included items and services. 405.2426 All-inclusive rate.

405.2427 Annual reconciliation.0 * *405.2428 Allowable costs.

405.2429 Reports and maintenance of re-(n) Rural health clinic services as cords.

specified in Subpart X of this part. 405.2430 Beneficiary appeals.2. Section 405.240 Is amended by Aumuormry: Sec. 1102. 1833. 1861(aa), 1871.

adding a new paragraph (f) as follows: Social Security Act: 49 Stat. 647, 79 Stat.302. 322, and 331, 91 Stat. 1485: 42 US.C.

§405.240 Payment of supplementary 1302. 13951. 1395hb. and 1395x(aa).medical insurance benefits; amounts §405.2401 Scope and definitions.payable. (a) Scope. This subpart establishes

the requirements for coverage and re-" "" imbursement of rural health clinic ser-

f) Eighty percent of the costs pay- vices under Medicare.able under Subpart X of this part, (b) DCfinitflns. As used in this sub-which are reasonable and related to part, unless the context indicatesthe cost of furnishing rural health otherwise:clinic services or which are based on (1) "Act" means the Social Securityother tests of reasonableness as speci- Act.fied by the Secretary. (2) "Allowable costs" means costs

3, Subpart B of this part is amended that are incurred by a clinic and areby redesignating § 405.250a as reasonable in amount and proper and§ 405.250-1 and adding a new § 405.250- necessary for the efficient delivery of2 as follows: rural health clinic services.

(3) "Beneficiary" means an Individ-§ 405.250-1 Outpatient physical therapy ual enrolled in the Supplementary

and speech pathology services fur- Mfedical Insurance program for thenished by participating provider; plan Aged and Disabled (Part B of titleof treatment requirements. XVIII of the Act).

(4-."Coinsurance" means that por-* * * * . tion of the clinic's charge for covered

services for which the beneficiary is§ 405.250-2 Procedures for payment; rural liable in addition to the deductible.

(5) "Carrier" means an organizationhealth clinic services furshed by a that has a contract with the Secretaryrural health clinic. to administer the benefits covered by

Payment for covered rural health this subpart.clinic services shall be made if: (6) "Covered services" means items

(a) The services are furnished In ac- or services for which the beneficiary iscordance with the requirements of entitled to have payment made on hisSubpart X of this part and Subpart A or her behalf under this subpart.of part 481 of this chapter;, and (7) "Deductible" means: (1) The first

(b) A written request for payment is $60 of expenses incurred by the bene-filed by the clinic on the form and in ficiary during any calendar year forthe manner prescribed by the Secre- items and services covered under Parttary. B of title XVIII; and

4. 42 CFR Part 405 is amended by (ii) The expenses incurred for theadding a new Subpart X to read as fol- first 3 pints of blood or 3 units oflows: packed red blood cells furnished to a

beneficiary during any calendar year.Subpart X-Rurat Health C lc Serice. (See sections 405.245 and 405.246 for

Sec. greater detail.)405.2401 Scope and definitions. (8) "HCFA" stands for Health Care405.2402 Basic requirement&. FInancIng Administration.405.2403 Content and terms of the agree- (9) "Intermittent nursing care'"

meat with the Secretary. means a medically predictable need405.2404 Terminations of agreements, for nursing care from time to time, but405.2410 Beneficiary entitlement and I1. usually not less frequently than once

ability.405.2411 Scope of benefits every 60 days.405.2412 Physicians' s c (10) "Nurse-mldwife" means a regis-405.2413 Services and supplies Incident to a tered professional nurse who is cur-

physician's services. rently licensed to practice in the State,405.2414- Nurse practitioner and physician who meets applicable State require-

assistant services. ments governing nurse midwives, and405.2415. Services and supplies Incident to who meets one of the following condi-

nurse practitioner and physician asls- tionstant services. (1) Is currently certified as a Nurse

405.2416 Visiting nurse services Midwife by the American College of405.2417 Visiting nurse services: Determi- Nurse Midwives; or

nation of shortage of hne health agen. Nu s sisforides. (11) Has satisfactorily completed a

405.2418 Applicability of general payment formal educational program (of atexclusions. least one academic year) that:

405.2425 Payment for rural health clinic (A) Prepares registered nurses toservices, furnish care to essentially, normal


RULES AND REGULATIONS 8261


newborns and women antepartally, in-trapartally, postpartally and/or gyne-cologically;

(B) Upon completion, qualifies thenurse to take the certification exami-nation offered by the American Col-lege of Nurse Midwives;

(C) Includes at least 4 months (inthe aggregate) of classroom instruc-tion and a component of supervisedclinical practice; and

(D) Awards a degree, diploma, or cer-tificate to persons who successfullycomplete the program; or

(iII) Has successfully completed aformal educational program that doesnot meet the requirements of para-graph (b)(10)(i) of this section, andhas been practicing as a nurse midwifefor a total of 12 months during the 18-month period immediately precedingthe effective date of the regulationsgoverning certification of rural healthclinics (February 8, 1978). '

(11) "Nurse practitioner" and "phy-sician assistant" mean individuals whomeet the applicable education, train-ing experience and other requirementsof § 481.2 of this chapter.

(12) "Part-time nursing care" meansnursing care that is required on lessthan a full-time basis, that is, lessthan 8 hours a day or 40 hours a week.

(13) "Physician" means: (i) A doctorof medicine or osteopathy legally au-thorized to practice medicine and sur-gery by the State in which the func-tion is performed; and

(ii) Within limitations as to the spe-cific services furnished, a doctor ofdentistry or dental or oral surgery, adoctor of optometry, a doctor of podia-try or surgical chiropody or a chiro-practor. (See section 1861(r) of the Actand § 405.232a of this part for specificlimitations).

(14) "Reporting period" means aperiod of 12 consecutive months speci-fied by the carrier as the period forwhich a clinic must report its costsand utilization, The first and last re-porting periods may be less than 12months.

(15) "Rural health clinic" means afacility that: (I) Has been determinedby the Secretary to meet the require-ments of section 1861(aa)(2) of the Actand Part 481 of this chapter; and

(ii) Has filed an agreement with theSecretary in order to provide ruralhealth clinic services under Medicare.(See § 405.2402.)

(16) "Secretary" means the Secre-tary of Health, Education, and Wel-fare or his delegate.

(17) "Specialized nurse-practitioner"means a registered professional nursewho is currently licensed to practice inthe State, who meets the State's re-quirements governing the qualifica-tions of nurse practitioners, and whomeets one of the following conditions:

(i) Is currently certified as a nursepractitioner by the American Nurses'

Association to perform specialized pri-mary health care services; or

(iI) Has satisfactorily completed aformal educational program (of at-least one academic year) that:

(A) Prepares registered - nurses toperform an expanded role in the deliv-ery of specialized primary health careservices;

(B) Includes at least 4 months (inthe aggregate) of classroom instruc-tion and a component of supervisedclinical practice; and

(C) Awards a degree, diploma, or cer-'tificate to persons who successfullycomplete the program, or

(Iii) Has successfully completed aformal educational program that doesnot meet the requirements of para-graph (17X11) of this section, and hasbeen performing an expanded role inthe delivery of specialized primaryhealth care services for a total of 12months during the 18-month periodimmediately preceding the effectivedate of the regulations governing cer-tification of rural health clinics (Feb-ruary 8, 1978).

(18) "Visit" means a face-to-face en-counter between a clinic patient and aphysician, physician assistant, nursepractitioner, nurse midwife, special-ized nurse practitioner, or visitingnurse. Encounters with more than -onehealth professional, and multiple en-counters with the same health profes-sional, which take place on the sameday and at a single location constitutea single visit, except for cases in whichthe patient, subsequent to the first en-counter, suffers illness or injury re-quiring additional diagnosis or treat-ment.

(19) "Visiting nurse services" meanspart-time or intermittent nursing careand related medical supplies (otherthan drugs or biologicals) furnished bya registered nurse or licensed practicalnurse to a homebound patient.

§405.2402 Basic requirements.(a) Certification by the State survey

agency.-The rural health clinic mustbe certified in accordance with Part481 of this chapter.

(b) Acceptance of the clinic as quali-fied to furnish rural health clinic ser-vices.-If the Secretary, after review-ing the survey agency recommenda-tion and other evidence relating to thequalifications of the rural healthclinic, determines that It meets the re-quirements of this subpart and of Part481 of this chapter, he will send theclinic:

(1) Written notice of the determina-tion; and

(2) Two copies of the agreement tobe filed as required by section1861(aa)(1) of the Act.

(c) Filing of agreement by the ruralhealth clinic.-If the rural healthclinic wishes to participate in the pro-gram, it must:

(1) Have both copies of the agree.ment signed by an authorized repre.sentative; and

(2) File them with the Secretary.(d) Acceptance by the Secretary,-If

the Secretary accepts the agreementfiled by the rural health clinic, he willreturn to the clinic one copy of theagreement, with a notice of acceptancespecifying the effective date.

(e) Duration of agreement-Theagreement shall be for a term of oneyear and may be renewed annually bymutual consent of the Secretary andthe rural health clinic.

(f) Appeal rights.-If the Secretarydoes not certify a rural health clinic,or refuses to enter into or renew anagreement, the facility is entitled to ahearing in accordance with Subpart 0of this part.

§ 405.2403 Content and terms of the agree.ment with the Secretary.

(a) Under the agreement, the ruralhealth clinic agrees to the following:

(1) Maintaining compliance withconditions.-The clinic agrees to main-tain compliance with the conditionsset forth in Part 481 of this chapterand to report promptly to HCFA anyfailure to do so.

(2) Charges to beneficiaries.-Theclinic agrees not to charge the benefi-ciary or any other person for Itemsand services for which the beneficiaryis entitled to have payment madeunuler the provisions of this part (orfor which the beneficiary would havebeen entitled if the rural health clinichad filed a request for payment in ac-cordance with § 405.250-2), except forany deductible or coinsuranceamounts for which the beneficiary isliable under § 405.2410.

(3) Refunds to beneficiaries.-(i) Theclinic agrees to refund as promptly aspossible any money Incorrectly collect-ed from beneficiaries or from someoneon their behalf,

(ii) As used in this section, "moneyincorrectly collected" means sums col-lected in excess of the amount forwhich the beneficiary was liable under§ 405.2410. It includes amounts collect-ed at a time when the beneficiary wasbelieved not to be entitled to Medicarebenefits but:

(A) The beneficiary is later deter.mined to have been entitled to Medi-care benefits; and

(B) The beneficiary's entitlementperiod falls within the time the ruralhealth clinic's agreement with the Sec-retary is in effect.

(4) Beneficiary treatment.-(i) Theclinic agrees to accept beneficiaries forcare and treatment; and

(ii) The clinic agrees not to imposeany limitations on the acceptance ofbeneficiaries for care and treatmentthat it does not' impose on all otherpersons.

(b) Additional provisions.-Theagreement may contain any additional


8262


provisionis that the Secretary findsnecessary or desirable for the efficientand effective administration of theMedicare program.

§ 405.2404 Terminations of agreements.(a) Termination by rural health

clinic.-(l) Notice to Secretary. If theclinic wishes to terminate its agree-ment it shall file with the Secretary awritten notice stating the intended ef-fective date of termination.

(2) Action by the Secretary.-(i) TheSecretary may approve the date pro-posed by the clinic, or set a differentdate no later than 6 months after thedate of the clinic's notice.

(ii) The Secretary may approve adate which is less than 6 months afterthe date of notice if he determinesthat termination on that date wouldnot:

(A) Unduly disrupt the furnishing ofservices to the community serviced bythe clinic; or

(B) Otherwise interfere with the ef-fective and efficient administration ofthe Medicare program.

(3) Cessation of business. If a clinicceases to furnish services to the com-munity, that shall be deemed to be avoluntary termination of the agree-ment by the clinic, effective on thelast day of business.

(b) Termination by the Secretary.-(1) Cause for termination. The Secre-tary may terminate an agreement ifhe determines that the rural healthclinic:

(i) No longer meets the conditionsfor certification under Part 481 of thischapter;, or

(ii) Is not in substantial compliancewith the provisions of the agreement.the requirements of this subpart, anyother applicable regulations of thispart, or any applicable provisions oftitle XVII of the Act; or

(iii) Has undergone a change of own-ership.

(2) Notice of termination. The Secre-tary will give notice of termination tothe rural health clinic at least 15 daysbefore the effective date stated in thenotice. -

(3) Appeal by the rural health clinic.A rural health clinic may appeal thetermination of its agreement in accor-dance with the provisions set forth inSubpart 0 of this part.

(c) Effect of termination. Paymentwill not b& available for rural healthclinic services furnished on or afterthe effective date of termination.

(d) Notice to the public. Promptnotice of the date and effect of termi-nation shall be* given to the public,through publication in local newspa-pers:

(1) By the clinic, after the Secretaryhas approved or set a terminationdate; or

(2) By the Secretary, when -he hasterminated the agreement.

(e) Conditions for reinstatementafter termination of agreement by theSecretary. When an agreement with arural health clinic is terminated bythe Secretary, the rural health clinicnay not file another agreement to par-ticipate in the Medicare programunless the Secretary:

(1) Finds that the reason for the ter-mination of the prior agreement hasbeen removed; and

(2) Is assured that the reason for thetermination will not recur.

§405.2410 Beneficiary entitlement and lI-ability.

(a) Entitlement A beneficiary is en-titled to have payment made on his orher behalf for rural health clinic ser-vices in accordance with this subpart.

(b) Liability. (1) The beneficiary'sentitlement to payment begins onlyafter the beneficiary has incurred thedeductible;

(2) The beneficiary is responsible, inaddition, for a coinsurance amountwhich cannot exceed 20.percent of theclinic's reasonable customary chargefor the covered service: and

(3) The beneficiary's deductible andcoinsurance liability, with respect toany one item or service furnished bythe clinic, may not exceed a reason-able amount customarily charged bythe clinic for that particular Item orservice.

§ 405.2411 Scope of benefits.(a) Rural health clinic services reim-

bursable under this subpart are:(1) The physicians' services specified

in § 405.2412;(2) Services and supplies furnished

as an incident to a physician's profes-sional service;,(3) The nurse practitioner or physi-cian assistant services specified in§ 405.2414;

(4) Services and supplies furnishedas an incident to a nurse practitioner'sor physician assistant's services; and -

(5) Visiting nurse services.(b) Rural health clinic services are

reimbursable when furnished to a pa-tient at the clinic, at a hospital orother medical facility, or at the pa-tient's place of residence.

§ 405.2412 Physicians' services.(a) Physicians' services are profes-

sional services that are performed by aphysician at the clinic or are per-formed away from the clinic by a phy-sician whose agreement with the clinicprovid6s that he or shi will be paid bythe clinic for such services.

§405.2413 Services and supplies Incidentto a physician's services.

(a) Services and supplies Incident toa physician's professional service arereimbursable under this subpart if theservice or supply is:

(1) Of a type commonly furnished inphysicians' offices;

(2) Of a type commonly renderedeither without charge or included inthe rural health clinic's bill;

(3) Furnished as an incidental, al-though integral, part of a physician'sprofessional services;.

(4) Furnished under the direct, per-sonal supervision of a physician; and

(5) In the case of a service, furnishedby a member of the clinic's health carestaff who Is an employee of the clinic.

(b) Only drugs and biologicals whichcannot be self-administered are includ-ed within the scope of this benefit.

§405.2414 Nurse practitioner and physi-clan assistant services.

(a) Professional services are reim-bursable under this subpart if:

(1) Furnished by a nurse practition-er, physician assistant, nurse midwife,or specialized nurse practitioner whoIs employed by, or receives compensa-tion from, the rural health clinic;

(2) Furnished under the medical su-pervision of a physician;

(3) Furnished in accordance withany medical orders for the care andtreatment of a patient prepared by aphysician;

(4) They are of a type which thenurse practitioner, physician assistant,nurse midwife or specialized nursepractitioner who furnished the serviceis legally permitted to perform by theState in which the service is rendered;and

(5) They would be covered if fur-nished by a physfcian.

(b) The physician- supervision re-quirement is met if the conditionsspecified in §481.8(b) of this chapterand any pertinent requirements ofState law are satisfied.(c) The services of nurse practition-

ers, physician assistants, nurse mid-wives or specialized nurse practitionersare not covered if State law or regula-tions require that the services be per-formed under a physician's order andno such order was prepared.

§405.2415 Services and supplies incidentto nurse practitioner and physician as-sistant services.

(a) Services and supplies incident toa nurse practitioner's or physician as-sistant's services are reimbursableunder this subpart if the service orsupply is:

(1) Of a type commonly furnished inphysicians' offices;

(2) Of a type commonly renderedeither without charge or included inthe rural health clinic's bill;

(3) Furnished as an incidental, al-though integral part of professionalservices furnished by a nurse practi-tioner, physician assistant, nurse mid-wife, or specialized nurse practitioner.

(4) F rnished under the direct, per-sonal supervision of a nurse practition-er, physician assistant, nurse midwife,specialized nurse practitioner or aphysician; and


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8264

(5) In the case of a service, ftrnishedby a member of the clinic's health carestaff who is an employee of the clinic.

(b) The direct personal supervisionrequirement is met in the case of anurse practitioner, physician assistant,nurse midwife, or specialized nursepractitioner only if such a person ispermitted to supervise such servicesunder the written policies governingthe rural health clinic.

(c) Only drugs and biologicals whichcannot be self-administered are includ-ed within the scope of this benefit.

§405.2416 Visiting nurse services.(a) Visiting nurse services are cov-

ered if:(1) The rural health clinic is located

in an area in which the Secretary hasdetermined that there is a shortage ofhome health agencies;

(2) The services are rendered to ahomebound individual;

(3) The services are furnished by aregistered nurse, licensed practicalnurse, or licensed vocational nursewho is employed by, or receives com-pensation for the services from theclinic; and

(4) The services are furnished undera written plan of treatment that is:

(i) Established and reviewed at leastevery 60 days by a supervising physi-cian of the rural health clinic or estab-lished by a nurse practitioner, physi-cian assistant, nurse midwife, or spe-cialized nurse practitioner and re-viewed at least every 60 days by a su-pervising physician; and

(i) Signed by the nurse practitioner,physician assistant, nurse midwife,specialized nurse practitioner, or thesupervising physician of the clinic.

(b) The nursing care covered by thissection includes:

(1) Services that must be performedby a registered nurse, licensed practi-cal nurse, or licensed vocational nurseif the safety of the patient is to be as-sured and the medically desired re-sults achieved; and

(2) Personal care services, to theextent covered under Medicare ashome health services. These servicesinclude helping the patient to bathe,to get in and out of bed, to exerciseand to take medications.

(c) This benefit does not coverhousehold and housekeeping- servicesor other services that would constitutecustodial care.

(d) For purposes of this section,"homebound" means an individualwho is permanently or temporarilyconfined to his or her place of resi-dence because of a medical or healthcondition. The individual may be con-sidered homebound if he or she leavesthe place of residence, infrequently.For this purpose, "place of residence"does not include a hospital or longterm care facility.


§405.2417 Visiting nurse services: Deter-mination of shortage of agencies.

A shortage of home health agenciesexists if the Secretary determines thatthe rural health clinic:

(a) Is located in a county, parish, orsimilar geographic area in which thereis no participating home healthagency or adequate home health ser-vices are not available to patients ofthe rural health clinic;

(b) Has (or expects to have) patientswhose permanent residences are notwithin the area serviced by a partici-pating home health agency; or

(c) Has (or expects to have) patientswhose periianent residences are notwithin a reasonable traveling distance,based on climate and terrain, of a par-ticipating home health agency.

§405.2418 Applicability of general pay-ment exclusions.

The payment conditions, limitations,and exclusions set out in Subpart Cand §§405.232, 405.243 and 405.252 ofthis part are applicable to payment forservices provided by rural health clin-ics.

§405.2425 Payment for rural health clinicservices.

(a) Payment to provider clinics. Aclinic will be paid in accordance withSubpart D of this part if:

(1) The clinic is an integral and sub-ordinate part of a hospital, skillednursing facility or home health agencyparticipating in Medicare (i.e,, a pro-vider of services); and

(2) The clinic is operated with otherdepartments of the provider undercommon licensure, governance andprofessional supervision.

(b) Payment to independent clinics,(1) All other clinics will be paid on thebasis of an all-inclusive rate for eachbeneficiary visit for covered services,This rate will be determined by thecarrier, in accordance with this sub-part add general instructions issued byHCFA.

(2) The amount payable by the carri-er for a visit will be determined as fol-lows:

(1) If the deductible has been fullyincurred by the beneficiary prior tothe visit, 80 percent of the all-inclusiverate will be paid.

(ii) If the deductible has not beenfully incurred by the beneficiary priorto the visit, payment will be made tothe clinic only if the clinic's reason-able customary charge for the servicesfurnished exceeds the amount neces-sary to satisfy the beneficiary's de-ductible. The amount necessary to sat-isfy the deductible will be subtractedfrom the all-inclusive rate, and 80 per-cent of the remainder, f any, will bepaid to the clinic.

(3) In order to receive payment, thepayment procedures established in ac-cordance with § 405.250-2 shall be fol-lowed.

(4) Thi method of payment shallterminate with reporting periods thatbegin after March 1, 1980.

§ 405.2426 All-inclusive rate.(a) Determination of rate. (1) An all-

inclusive rate will be determined bythe carrier at the beginning of the re-porting period.

(2) The rate will be determined bydividing the estimated total allowablecosts by estimated total visits for ruralhealth clinic services.

(3) The rate determination will besubject to any tests of reasonablenessthat may be established In accordancewith this subpart. -

(b) Adjustment of rate. (1) The carri-er will, during each reporting period,periodically review the rate to assurethat payments approximate actual al-lowable costs and visits for ruralhealth clinic services, and will adjust itif:

(i) There Is a significant change Inthe utilization of clinic services;

(ii) Actual allowable costs vary mate-rially from the clinic's estimated al-lowable costs; or

(iii) Other circumstances arise whichwarrant an adjustment.

(2) The clinic may request the carri-er to review the rate to determinewhether adjustment Is required.

§405.2427 Annual reconciliation.(a) General Payments made to a

rural health clinic during a reportingperiod will be subject to reconciliationto assure that those payments do notexceed or fall short of the allowablecosts attributable to covered servicesfurnished to Medicare beneficiariesduring that period.

(b) Calculation of reconciliation, (1)The carrier will determine the total re.imbursement amount due the clinic onthe basis of;

(I) The report specified in§ 405.2429(c)(2); and

(i1) The rate determined by dividingthe total allowable costs Incurred forthe reporting period by total visits forrural health clinic services furnishedfor the period. The rate will be subjectto tests of reasonableness which maybe established In accordance with thissubpart.

(2) The total reimbursement amountdue shall be compared with total pay-ments made to the clinic for the re-porting period, and the differenceshall constitute the amount of the rec.onciliation,

(c) Notice of program reimburse.ment.-The carrier will send writtennotice to the clinic:

(1) Setting forth its determination ofthe total reimbursement amount duethe clinic for the reporting period andthe amount, if any, of the reconcili-ation; and

(2) Informing the clinic of its rightto have the determination reviewed at



a hearing under the procedures setforth in Subpart R of this part, if theamount in controversy is at least$1,000.

(d) Payment of reconciliationamount (1) Underpayments. If thetotal reimbursement due the clinic ex-ceeds the payments made for the re-porting period, the carrier will make alump-sum payment to the clinic tobring total payments into agreementwith total reimbursement due theclinic.

(2) Overpayments. If the total pay-ments made to a clinic for the report-ing period exceed the total reimburse-ment due the clinic for the period, thecarrier will arrange with the clinic forrepayment through a lump-sumrefund, or, if that poses a hardship forthe clinic, through offset against sub-sequent payments or a combination ofoffset and partialrefund. The repay-ment shall be completed as quickly aspossible, generally within 12 monthsfrom the date of the notice of programreimbursement. A longer repaymentperiod may be agreed to by the carrierif the carrier is satisfied that unusualcircumstances exist which warrant alonger period.

§ 405.2428 Allowable costs.(a) Applicability of general Medicare

principles; In determining whether aspecific type or item of cost is allowa-ble, such as interest, depreciation, baddebts and owner compensation, theprinciples for reimbursement of pro-vider costs, as set forth in Subpart Dof this part, will be followed as appli-cable.

(b) Typical rural health clinic costs.The following types and items of costwill be included in allowable costs tothe extent that they are reasonable:

(1) Compensation for the services ofphysicians, physician assistants, nursepractitioners, nurse midwives, special-ized nurse practitioners and visitingnurses employed by the clinic.

(2) Compensation for-the duties thata supervising physician is required toperform under the agreement speci-fied in § 481.8 of this chapter.

(3) Costs of services and supplies in-cident to the services of a physician,physician assistant, nurse practitioner,nurse midwife or specialized nursepractitioner.

(4) Overhead costs, including clinicadminstration, costs applicable to useand maintenance of the clinic facility,and depreciation costs.

(5) Costs of services purchased bythe clinic.

(c) Tests of reasonableness for ruralhealth clinic cost and utilization.Tests of reasonableness authorized bysections 1833(a) and 1861(v)(1)(A) ofthe Act may be established by HCFAor the carrier with respect to direct orindirect overall costs, costs of specificitems and services, or costs of groupsof items and services. Those tests in-clude, but are not limited to, screeningguidelines and payment limitations.

(d) Screening guideline.-(1) Costsin excess of amounts established bythe guidelines will not be included'unless the clinic provides reasonablejustification satisfactory to the carri-er.

(2) Screening guidelines will be usedto assess:

(1) Compensation for the profession-al and supervisory services of physi-cians and for the services of physicianassistants, nurse practitioners, nursemidwives and specialized nurse practi-tioners;

(il)Physician, physician assistant,nurse practitioner, specialized nursepractitioner, nurse midwife, and visit-Ing nurse productivity.

(ill) The level of admininstrative andgeneral expenses;

(iv) Staffing (e.g., the ratio of otherclinic personnel to physicians, physi-cian assistants, and nurse practition-ers); and

(v) The reasonableness of paymentsfor services purchased by the clinic,subject to the limitation that the costsof physicians' services purchased bythe clinic may not exceed the reason-able charges for these services as de-termined under Subpart E of this part.

(e) Payment limitations. Limits onpayments may be set by HCFA, on thebasis of costs estimated to be reason-able for the piovision of such services.§405.2429 Reports and maintenance of

records.(a) Maintenance and availability of

records. The rural health clinic shall:(1) Maintain adequate financial and

statistical records, In the form andcontaining the data required byHCFA, to allow the carrier to deter-mine payment for covered services fur-nished to Medicare beneficiaries in ac-cordance with this subpart

(2) Make the records available forverifoication and audit by HEW or theGeneral Accounting Office;

(3) Maintain financial data on an ac-crual basis, unless It Is part of a gov-ernmental Institution that uses a cashbasis of accounting. In the latter case,

-appropriate depreciation on capitalassets will be allowable rather thanthe expenditure for the capital asset.

(b) Adequacy of records-(1) Thecarrier may suspend reimbursement ifIt determines that the clinic does notmaintain records that provide an ade-quate basis to determine paymentsunder Medicare.

(2) The suspension will continueuntil the clinic demonstrates to thecarrier's satisfaction that It does, andwill continue to, maintain adequaterec- ords.

(c) Reporting requirements-(l) Ini-tial report. At the beginning of Its ini-tial reporting period, the clinic shallsubmit an estimate of budgeted costsand visits for rural health clinic serv-ices for the reporting period, in theform and detail required by HCFA,and such other information as HCFAmay require to establish the paymentrate.

(2) Annual reports. Within 90 daysafter the end of Its reporting period,the clinic shall submit, in such formand detail as may be required byHCFA, a report of:(I) Its operations, including the al-

lowable costs actually incurred for theperiod and the actual number of visitsfor rural health clinic services fur-nished during the period; and

(li) The estimated costs and visits forrural health clinic services for the suc-ceeding reporting period, and suchother information as HCFA may re-quire to establish the payment rate.

(3) Late reports. If the clinic doesnot submit an adequate annual reporton time, the carrier may reduce or sus-pend payments to preclude excess pay-ment to the clinic.

(4) Inadequate reports. If the clinicdoes not furnish a report or furnishesa report that Is iiadequate for the car-rier to make a determination of pro-gram payment, HCPA may deem allpayments for the reporting period tobe overpayments.

(5) Postponement of due date Forgood cause shown by the clinic, thecarrier may, with HCFA's approval,grant a 30-day postponement of thedue date for the annual report.

(6) Termination of agreement orchange of ownership. The report froma clinic which voluntarily or involun-tarily ceases to participate in theMedicare program or experiences achange in ownership Is due no laterthan 45 days following the effectivedate of the termination of agreementor change of ownership.

§ 405.2430 Beneficiary appeals.A beneficiary may request a hearing

by a carrier (subject to the limitationsand conditions set forth in Subpart Hof this part) If:(a) The beneficiary is dissatisfied

with a carrier's determination denyinga request for payment made on his orher behalf by a rural health clinic; or(b) The beneficiary Is dissatisfied

with the amount of payment; or(c) The beneficiary believes the re-

quest for payment is not being actedupon with reasonable promptness.

(Sec. 1102 1833, 1861(aa), 1871, Social Secu-rity Act; 49 Stat. 647, '9 StaL 302, 322, and331, 91 StaL 1485; 42 U.S.C 1302, 13951,1395hb, and 1395x(aa).)(Catalog of Federal Domestic AssistancePrograms-13.801, Medicare-SupplementaryMedical Insurance.)


RoBE= A. DmmoN,

Administrator, Health CareFinancingAdministration.

Approved: February 23, 1978.JoszPH A. CALIPAo, Ji.,

Secretary.

oFR c. '8-5403 Filed 2-28-78; 845 am]


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proposed rulesThis section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and

investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements oforganization and functions are examples of documents appearing in this section.

[6320-01]CIVIL AERONAUTICS BOARD

[14 CFR Parts 207, 208,212,2141

[EDR-343-B; Economic Regulations Docket31229; Dated February 23,1978]

CHARTER FLIGHT DELAYS AND SUBSTITUTEAIR TRANSPORTATION

Supplemental Notice of Proposed Rulemaking

AGENCY: Civil Aeronautics Board.

ACTION: Supplemental notice of pro-posed rulejnaking.

SUMMARY: This notice establishes a31-day period for the filing of replycomments in a rulemaking proceedingabout charter flight delays.DATES: Comments by April 14, 1978.Reply comments by May 15, 1978.Comments and other relevant infor-mation received after these dates willbe considered by the Board only to theextent practicable. Requests to be puton the Service List: March 13, 1978.Docket Section prepares the ServiceList and sends It to each person listed,who then serves his comments onothers on the list.

ADDRESSES: Twenty copies of com-ments should be sent to Docket 31229,Civil Aeronautics Board, 1825 Con-necticut Avenue NW,, Washington,D.C. 20428. Individuals may .submittheir views as consumers withoutfiling multiple copies. Comments maybe examined in Room 711, Civil Aero-nautics Board, 1825 ConnecticutAvenue NW., Washington, D.C., assoon as they are received.


Mr. Richard Dyson, Office of Gener-al Counsel, Rules Division, 1825 Con-necticut Avenue NW., Washington,D.C. 20428, 202-673-5444.

SUPPLEMENTARYr INFORMATION:By Notice of Proposed RulemakingEDR-343, dated December 22, 1977 (42FR 64905, December 29, 1977), theBoard proposed to change its regula-tions, so as to allow a maximum of 6hours' delay on all charter flights byall types of carriers.

Comments in response to EDR-343were originally due February 13, 1978.In a letter dated January 30, 1978,counsel for the National Air CarrierAssociation (NACA) requested a 60-day extension of the period for filing

comments on the'notice. They furtherrequested that, in light of the varietyof alternatives likely to be recom-mended by the commenters, a 31-dayperiod for reply comments be estab-lished. The NACA request was sup-ported in three letters dated January31, 1978, from counsel for severalcharter-only foreign air carriers.2

The request for an extension of theinitial comment period was granted onFebruary 6, 1978 (EDR-343A. 43 FR5383, February 8, 1978) by the Asso-ciate General Counsel, Rules Division,under the authority delegated by§ 385.20(d) of the Board's OrganizationRegulations (14 CFR 385.20(d)). How-ever, since he does not have delegatedauthority to establish a period for thefiling of reply comments, he has re-ferred the second portion of theNACA request to the Board.

Because reply comments may be par-ticularly useful to us in analyzing anyrecommendations that may be includ-ed in the initial comments, we have de-cided to grant the request. According-ly, we will consider reply commentssubmitted by May 15, 1978.

Those persons planning to partici-pate who wish to be served with thecomments of others, and who are will-ing to serve their own comments andreply comments on others, may on orbefore the date shown at the begin-ning of this notice, request the DocketSection to place them on the ServiceList. The Service List -will be preparedby the Docket Section and mailed tothose named on it. Persons filing re-sponsive comments should serve anyperson whose comment is dealt with intheir responsive comments, whetheror not either party is on the ServiceList.

(Sec. 204(a) of the Federal Aviation Act of1958, as amended, 72 Stat. 743, 49 U.S.C.1324.)


PHYLLIS T. KAYLOR,Secretary.

DFR Doe. 78-5426 Filed 2-28-78; 8:45 am]

,British Caledonian Airways, Ltd., Dan-Air Services Ltd., and Condor FlugdlenstGmhH.

[6320-01][14 CFR Part 2231

[Economic Regulations Docket 32160: EDR-346; Dated: February 23, 19783

DEFINITIONS OF "HANDICAPPED" AND"RETIRED" PERSONS FOR FARE PURPOSES

Notice of Proposed Rulemaking

AGENCY: Civil Aeronautics Board.

ACTION: Notice of proposed rulemak-ing.SUMMARY: This notice proposes toestablish definitions of the terms"handicapped" and "retired," for theguidance of carriers wishing to estab-lish reduced fares for handicappedand retired passengers in accordancewith a recent amendment of the Fed-eral Aviation Act that allows such spe-cial fares and requires the Board todefine these terms,DATES: Comments by:' April 10, 1978.Reply comments by: May 1, 1978.

Comments and other relevant Infor-mation received after these dates willbe considered by the Board only to theextent practicable.

Requests to be put on the ServiceList: March 21, 1978. Docket Sectionprepares the Service List and sends Itto each person listed, who then serveshis comments on others on the list.

ADDRESSES: Twenty copies of com.ments should be sent to Docket 32160,Civil Aeronautics Board, 1825 Con.necticut Avenue NW., Washington,D.C. 20428. Individuals may submittheir views as consumers withoutfiling multiple copies. Comments maybe examined In Room 711, Civil Aero.nautics Board, 1825 ConnecticutAvenue NW., Washington, D.C. assoon as they are received.FOR FURTHER INFORMATIONCONTACT:

Stephen Babcock, Office of the Gen-eral Counsel, Civil AeronauticsBoard, 202-673-5442.

SUPPLEMENTARY INFORMATION:Section 8(a) of Pub. L. 95-163, 91 Stat.1281, enacted on November 9, 1977,amends section 403(b)(1) of the Feder-al Aviation Act of 1958 to require theBoard to allow carriers to establishspace-available reduced fares for thetransportation of three clases of pas-sengers: the handicapped (and any re-quired attendants); people who are atleast 60 years old and retired; and allpeople who are at least 65 years old.

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MA5CH 1, 1978

PROPOSED RULES

Section 8(a) of the new law statesthat a "handicapped person" is "anyperson who has severely impairedvision or hearing, .and any other phys-ically or mentally handicapped person,as defined bythe .Board," and that:"re-tired" means "no longer gainfully em-ployed as defined by the Board." (Em-phases added.)

The proposed definition of thephrase "physically or mentally handi-capped" is based on the definition of"handicapped person" adopted by theDepartment of Health, Education, andWelfare (45 CFIR 843(j), 42 FR 22678,May 4, 1977) for the purposes of sec-tion 504 of the Rehabilitation Act of1973, as amended, 29 U.S.C. 706. TheBoard's proposed definition is some-what simpler than the one adopted byHEW, however, since this definitionmust determine only eligibility for re-duced rate space-available air trans-portation, whereas the RehabilitationAct definition must take into accounta great variety of potential discrimina-tions against otherwise qualifiedhandicapped persons.

Air carriers are already required tofile in their tariffs all of their rulesand regulations for transportinghandicapped persons, including theirrules for determining the kinds ofhandicaps which prohibit the trans-portation of the handicapped personfor safety reasons. (ER-1020, adopted

,on August 25, 1977, in fDocket 23904,42 FR 43828 (August 31, 1977).) Therules proposed here are not intended'to modify or otherwise affect thosesafety-related tariff rules, of course,.but are rather intended to apply tothose handicapped persons who may(either by themselves or with an at-tendant) be safely" carried in accor-dance with the carier'ls rules on thatsubject.

The Board's proposed definition of"no longer gainfully employed" is notbased on any existing definition, andits allowance of partial employmentreflects our surmise that the Congressintended us to adopt a liberal defini-tion.

The proposd new § 223.11 to our ex-isting regulations on free and reducedrate transportation <14 CFR Part 223)is simply intended to make it clearthat carriers may adopt reasonabletariff rules, supplementing the regula-tions proposed here, concerning thespace-available reduced fare transpor-tation which section 403(b)(1) autho-rizes.

Finally, we will consider in this pro-ceeding whether to define the term"handicapped" to include immigrantorphans, and we specifically solicit theviews of interested members of thepublic on this question. The Board hasalready received a humber of lettersfrom persons interested in the place-ment of foreign orphan children with

American families., These childrentravel to the United States, principallyfrom Asian counties, and are a defin-able class, specifically Identified bythe Immigration and NaturalizationService (see 8 CFR 204.1(b)). The writ-ers of these letters have stressed theneed of the adoption agencies toobtain free or reduced rate transporta-tion for these children, and argue thatthe plight of these orphans Is in Itselfa handicap of great magnitude.

We have tentatively concluded thatthese children should not be classifedas handicapped for the purpose of sec-tion 403 of the Act unless they are Infact emotionally or physically Im-paired, and the definition proposedhere therefore does not specifically In-clude them. We have not reached afirm decision on this important ques-tion, however, and will give it carefulconsideration, In light of both thecomments that have already been xe-ceived and those that we will receivein response to this notice, beforetaking final action.

Accordingly, it Is proposed to amendPart 223 of the Board's Economic Reg-ulations (14 CFR Part 223) as follows:

§223.1 fAmended]1. In §223.1, "Definitions," after the

definition of the term "Tree transpor-tationl'.add the following new defini-tion

"No longer gainfully employed" or"retired' "'as those terms are 'used Insection 403(b)(1) of the Act, means not*regularly working at a full-time payingjob.

2. In §223.1. "'Definitions," after thedefinition of the term "Originaltariff," add the following new defini-tion:

"Physically or mentally handicappedperson," as used In section 403(b)(1) ofthe Act, means any person who has aphysical or mental Impairment (other'than drug addiction or alcoholism),which substantially limits one or moremajor life activities.

3. Add the following new § 223.11:

§223.11 Space-avallable reduced fares forministers of religion and for elderly,,retired and handicapped people.

Carriers offering reduced fares on aspace-available basis pursuant to sub-section 403(b)(1) of the Act may estab-lish reasonable tariff rules to assist Inidentifying those who qualify fortransportation under that subsection.(Secs. 204 and 403 of the Federal AvlationAct of 1958, as amended; 72 Stat. 43. 758

,These Include letters from a number orfamilies who wish to adopt these childrenand from several of their Senators and Con-gressmen. as well as letters from adoptionagencies engaged In placement services andfrom their counsel. All or these letters havebeen placed In the offlcka docket file forthis proceeding.

(as amended by 91 Stat. 1281; -49 U-.C.1324. 1373.)

By the Civil Aeronautics Board.Puy~ s T. ]KJ..xox,

Secretm an.[FR Doc. 78-5402 Filed 2-28-'8; 8:45 a=l

17510-011NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

[14 CFR Part 1221]

THE NASA SEAL AND OTHER DEVICES, ANDTHE CONGRESSIONAL SPACE MEDAL OFHONOR

Procedures for Nominctloa of an Asirencut

AGENCY: National Aeronautics andSpace Administration.

ACTION. Proposed regulation.

SUMMARY: The National Aeronau-tics and Space Administration (NASA)Is proposing procedures for the nomi-nation of an -astronaut by the Admnin-Istrator to receive the CongressionalSpace Medal of Honor. Pub. I, 91-96authorizes the President to award theMedal in the name of Congress. Part1221 would be amended to include anew Subpart 2-The CongressionalSpace Medal of Honor.DATE: Any comments received byApril 1. 1978, will be considered beforea final regulation Is adopted.ADDRESS: Comments and requestsfor additional Information are ad-dressed to: Susan McGuire Smith,Office of General Counsel, Mal CodeGG-1, NASA Headquarters, 'Washing-ton. D.C. 20546.FOR FURTHER INFORMATIONCONTACT.

Susan McGuire Smith, 202/755-3924.SUPPLEMENTARY INFORMATION:This proposed i;egulation has been co-ordinated with the Office of GeneralCounsel, Department of Defenese.

Dated: February 23, 1978.A L M.LovEras

DeputyAdministrator.1. 14 CFR Part 1221 is amended by,(a) Revising the Part heading.

PART 1221-THE NASA SEAL AND OTHER DE-VICES, AND THE CONGRESSIONAL SPACEmEAL OF HONOR

(b) Redesignating 0§ 1221.100through 1221.117 as Subpart 1221-1with the following Subpart heading:.

1221.1-NASA Official Seat, Insignia, Logo-lypo, Officiol- Program and AsIromoatldges, -nd Flags(c) Adding a new Subpart 1221.2

reading as follows

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY,,MARCH 1, 1978

8267

PROPOSED RULES

Subpart 1221.2-The Congressional Space Medal ofHonor

Sec.1221.200 Scope.1221.201 Basisfor award of the medal.1221.202 Description of the medal.1221.203 Nominations.122r.204 Proceedings of the NASA Incen-

tive Awards Board.Authority:. Pub. L. 91-76, September 29,

1969.Subpart 1221.2-The Congressional Space

Medal of Honor

§ 1221.200, Scope.This Subpart establishes procedures

for nominating an astronaut for theCongressional Space Medal of Honor.

§ 1221.201 Basis for award of the medal.(a) The standard for award of the

Congressional Space Medal of Honoris established by Pub. L. 91-76 (42U.S.C. 2461) which provides that thePresident may award the Medal to any"astronaut who in the performance ofhis duties has distinguished himself byexceptionally meritorious efforts andcontributions to the welfare of theNation and of mankind."

(b) Only one Congressional SpaceMedal of Honor may be awarded to aperson. However, for each succeedingact that would otherwise Justify theaward of the Medal, the Presidentmay award a suitable bar or otherdevice.

(c) The Medal may be awarded to anyperson who is or has been designatedto travel in space and who has distin-guished himself or herself while un-dertaking duties in preparation for,execution of, or subsequent to, but inconnection with, a space flight.

(d) The Medal may be awarded for ac-tions occurring before the effectivedate of this Subpart 1221.2, and, whenappropriate, posthumously.

§ 1221.202 Description of the medal.The description of the Congressional

Space Medal of Honor, which was de-signed by the Institute of Heraldry,U.S. Army, is set forth in: Appendix Ato this Subpart. Each person awardedthe Medal also shall receive a citationdescribing the basis for the award.

§ 1221.203 Nominations.(a) Formal nominations for award of

the Congressional Space Medal ofHonor on behalf of NASA will bemade by the Administrator to thePresident.

(b) Any person may recommend tothe Administrator that an astronautbe nominated for award of the Medal.Such a recommendation must be inwriting, and must describe in concisedetail the events believed to warrantaward of the Medal. The recommenda-tion should, if appropriate, be accom-panied by supporting documentation,such as eyewitness statements, ex-tracts from official records, sketches,photographs, etc.

(c) All recommendations for nomina-

tions submitted to the Administratoror made on his own initiative will bereferred to the NASA Incentive

.Awards Board for the purpose of in-vestigating and making findings offact and giving advice to the Adminis-trator.

(d) Any recommendation involving anastronaut who is a member of thearmed services on active duty or whois employed by another agency of theFederal Government but temporarilyassigned or detailed to NASA shallalso be transmitted to the Secretary ofDefense or the head of the employingagency, as appropriate, for his or herrecommendation.

(e) The Administrator will forward tothe President his recommendation,and that of the astronaut's employingagency, as appropriate.

§ 1221.204 Proceedings of the NASA In-centive 'Awards Board.

The NASA Incentive Awards Boardshall thoroughly consider the factsgiving rise to a recommendation fornomination and shall prepare a reportfor the Administrator. The Boardshould, to the extent practicable, co-ordinate its efforts with those 6f theastronaut's employing agency, as ap-propriate. Its final report must takeinto account any pertinent informa-tion submitted by .the employjlngagency.

2. In Title 14, CFR, Chapter 5, thetable of contents is revised to changethe title of Part 1221 to read as fol-lows:

The NASA Seal and Other Devices, and theCongressional Space Medal of Honor

APPENDlix A-CoNGRESSIONAL SPACE MEDAL

OBVERLSE

DESCRIPTION

A circular green enamel wreath of laurelsurmounted by a five-pointed gold star(with vertical point downward) and issuingfrom between each point a gold flame, thestar surmounted by a light blue enamelcloud bank with five lobes edged in goldbearing a five-pointed dark blue enamel starfimbriated gold and charged in center witha diamond; standing upon the wreath at topcenter a gold eagle with wings displayed.

SYMBOLISM

The laurel wreath, a symbol of greatachievement, with the overlapping starpolxits, simulates space vehicles moving togreater accomplishments through space.The flames signify the dynamic energy ofthe rocket era and the imagination of themen in the space program of the UnitedStates. The stylized glory cloud alludes tothe glory in the coat of arms of the UnitedStates and to the high esteem of the award.The dark blue Voided star symbolizes thevast mysteries of outer space while the bril-lancy of the feat is represented by a dia-mond. The eagle with wings raised in thespirit of peace represents man's first landingon another planet.

DESCRIPTION

The reverse bears in center the inscription"CONGRESSIONAL" arranged in a semi-circle above the inscription "SPACEMEDAL PRESENTED TO"; in base is spacefor the name of the recipient and the date,all within an outer circle of fifty stars.

SUSPENSION RIBBON

DESCRIPTION

A ribbon 1% inches in width consisting ofthe following vertical stripes: gold '/a inch,dark blue V4 inch, light blue %z inch. whiteVia inch. red Via inch, white V o inch, lightblue %2 inch, dark blue 4 Inch, gold Vainch.

CABLE Nos. OF COLORS

Gold ............................. 65021 (old gold).Dark blue .................... 70076 (independence blue).Blue ............................. 65014 (light blue).Red ............................... 65000 (scarlet).W hite .......................... 65005.

SYMBOLISM

The scarlet center line on the white bandsymbolizes the courage of the astronauts Inthe nation's manned space program and thefire power of rockets that carry the crewthrough the earth's atmosphere (lightblue); the light blue Is the same color as thechief of the shield of the coat of arms of theUnited States which appears on the Presi.dent's flag. The dark blue symbolizes thehostile environment of space, the gold edgerepresenting success and accomplishment.Red, white and blue are also the nationalcolors of the United States.

MINIATURE

DESCRIPTION

A one-half size replica of the medal and'suspension ribbon approximately 2%ioinches in overall length.

LAPEL ErMLELm

DESCRIPTION

A miniature of the obverse of the medal,%a inch in diameter, all gold with a diamondin center.

Rosr

DESCRIPTION

One-half inch in diameter in the colors ofthe ribbon.

[FR Dec. 78-5312 Filed 2-28-78; 8:45 am]

[6750-01]FEDERAL TRADE COMMISSION

[16 CFR Part 443]

HEALTH SPAS

Additional Hearings on Proposed TradeRegulation Rule

AGENCY: Federal Trade Commission,ACTION: Additional hearings sched-uled at New York, N.Y.

SUMMARY: On May 24, 1977, the pre-siding officer published in the FEDERALREGISTr a Final Notice of a proposedtrade regulation rule proceeding con-


8268

PROPOSED RULES

cerning Health Spas. Hearings in addi-tion to those listed in that notice havebeen scheduled.DATES: Hearings will be held onMarch 13 and 14, 1978, in New YorkCity -commencing at 10:00 am. and9:00 a.m, respectively.ADDRESSES: Hearing location: RoomC and D, 2204-2206 of the :FederalTrade Commission, JNew York Region-al Office in the Federal Building at 26Federal Plaza, New York, New York.FOR TURTHER INFORMATIONCONTACT.

Mr. John -Crowley, 212-264-7160,Federal Trade Commission, NewYork Regional Office, Federal Build-ing, 26 Federal Plaza, New York,N.Y. 10007.

SUPPLEMENTARY INFORMATION:On May 24, 1977, the presiding officerpublished in the FEornAL REGISTER (42FR 26432) a Final Notice of a proposedtrade regulation rulemaking proceed-ing concernin Health Spas. The noticeincluded a schedule of dates andplaces of hearings.

Two witnesses -were unable to bescheduled at the New York hearingsdue to a dispute concerning their pro-posed testimony. This dispute has now

-been resolved and the presiding officer- has scheduled additional hearings to

be held commencing at 10 a.m., March13, 1978, in Room C and D. 2204-2206.at the Federal Trade Commission NewYork Regional Office, Federal Build-ing, 26 Federal Plaza, New York, N.Y.10007. The hearings will be confinedto the testimony of these two wit-nesses. The testimony of the two wit-nesses will be in public hearing, cross-examination of the two witnesses willbe in closed sessions and not open tothe public.

Prepared statements or outlines andexhibits of the witnesses will be madeavailable for inspection at the NewYork Regional -Office at the above ad-dress.

For additional information, instruc-tions and requirements regarding theproceeding, see the presiding officer'sFinal Notice in the FEERAL REGISTERof May 24, 1977, 42 FR 26432.

Issued: February 24, 1978.ROGER J. FrrzPATRICK,

Presirding Officer.[FR Doc. 78-5340 Filed 2-28-78; 8:45 mi

[8010-01SECURITIES AND EXCHANGE

COMMISSION

[17 CFR Part 240]

tRelease No. 34-14493; File No. S7-737]

REGULATION OF CLEARING AGENCIES

AGENCY: Securities and ExchangeCommission.

ACTION: Proposed rule.SUMMARY: The proposed rule Is In.tended to disclose the names of deposi-tory participants to issuers and otherqualified parties for the purpose of es-tablishing a point outside the deposi-tory from which the distribution ofcommunIcations to beneficial slar-eowners may be Initiated. The propos-'al facilitates Issuer-shareowner com-munlcatlons by codifying an existingpractice between Issuers and deposi-tories and by making depository par-ticipant information available to cer-tain qualified non-Issuers without theneed for issuer cooperation.

DATES: Comments must be receivedon or before: April 30, 1978.ADDRESS: Written comments, sub-mitted In triplicate, should be ad-dressed to the Secretary, Securitiesand Exchange Commission, 500 NorthCapitol Street, Washington. D.C.20549, and refer to Pile No. S7-737.FOR FURTHER INFORMATIONCONTACT.

Dennis E. Carlton. Attorney, Divi-sion of Market Regulation. Securi-ties and Exchange Commission. 500North Capitol Street. Washington,D.C. 20549. 202-755-8946.

SUPPLEMENTARY INFORMATION:Notice is hereby given that the Securi-ties and Exchange Commission (the"Commission":), pursuant to sections 2,1VA and 23(a) of the Act E15 US.C.78b, 78q-1 and 78w(a)], publishes forpublic comment an amendment toTitle 17, Chapter U1, Part 240 of theCode of Federal Regulations to addD 240.17Ad-8.

PnoposED Ruix l7Ad-8Proposed Rule' 17Ad-8 would require

registered clearing agencies to trans-mit a "securities position listing"4 on aperiodic basis to each Issuer whose se-curities the clearing agency holds and,upon request, to other persons whocertify their entitlement under Feder-al law or applicable state law to In-spect, obtain, or otherwise gain accessto the issuer's list of shareholders ofrecord or securities position listing orwho attest to the issuer's decision toprovide the claimant with the positionlisting. Under the rule, issuers aregiven the opportunity to contest suchclaims.

A securities position listing wouldhave to be transmitted by each regis-tered clearing agency, without charge,annually and, If requested, quarterly

,A "securities posItIon listing" Is definedby the proposed rule to mean: "EW]Ith re-spect to the securities of any issuer.. .- alist of those participants In Ja registered]clearing agency on whose behalf the clear-ing agency holds the Issuer's securities andof the participants' respective psitions Insuch.securlties as of a specified date."

to each Issuer whose securities theclearing agency holds. Additional list-ings also would be provided to issuersupon request. Listings furnished pur-suant to the proposed rule, exceptannual and quarterly listings providedto issuers, would be subject to a rea-sonable charge based on the clearingagency's cost of preparation.

DIscussIoN

Chapter V of the Commission's Final'Report of the Street Name Study rec-ommended that "each depository berequired to transmit periodically toeach Issuer whose securities the de-pository holds of record a list of thepersons on -whose behalf the deposi-'tory holds the securities."m The recom-mendation of the Street Name Study'was Intended to codify an existing de-pository practice which facilitatesIssuer-shareowner communications byenabling issuers to initiate the commu-nication process with depository par-ticipants instead of with the deposi-tories. The proposed rule would for-malize this practice and enable certainqualified non-issuers to obtain deposi-tory participant information withoutthe need for Issuer cooperation that isso important now.

Depositories generally have refusedto provide participant Information topersons other than Issuers.' The Com-mission is aware of several instanceswhere Issuers have taken the positionthat under state law they are obligat-ed to reveal only shareholders ofrecord, a position which discloses de-positories but not depository partici-pants. The general unavailability of

2SEC, Final Report of the Securities andExchange Commisson on the Practice ofRecording the Ownership of Securities inthe Records of the Lsuer in Other than theName of the Beneficial Owner of Such Se-curities, pursuant to Section 12(m) of theSecurities Exchange Act of 1934 (Commit-tee Print 1976) (the "Street Name Study"),55.

'Under the "omnibus proxy procedure,"the depository prepares for an Issuer havinga shareholders' meeting a list of the namesand holdings of participants that have de-pository positions In the issuer's securitiesas of the record date. The depository thenforwards the list to the Issuer alongwith an"omnibus proxy" which authorizes eachparticipant, to the extent of the partici-pants position, to act as the depository'sproxy and to vote the securities.

'Requests from non-issuers for positionlistings have been received by most deposi-tories. The majority of such requests arefrom "proxy solicitors ." The depositoriescomply with the requests only after receiv-Ing written authorization from the issuersInvolved or after satisfying themselves that-the solicitor is inquiring on bealf of therelevant Isuer. Otherwise, unless the re-quest is from a governmental authority or isaccompanied by a court order for produc-tion of the listing, the request is refused.

FEDERAL REGISTER, .VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978

8269

PROPOSED RULES

depository participant informationcreates .an impediment to communica-tions between non-issuers and benefi-cial shareowners.

The proposed rule overcomes thatimpediment for qualifying non-issuerswhile protecting the interests of Issu-ers and depositories. Issuers are con-cerned that shareowner informationbe disclosed only to proper parties.The proposed rule (i) limits the nonis-suers who may obtain the informationwithout issuer consent to those enti-tled by Federal law or to those enti-tled under state law to recordholderinformation, and (ii) requires the non-issuers to give prior notice to issuers ofthe basis for claiming entitlement tothe Information. The former require-ment reduces the likelihood of improp-er or frivolous claims by requiring aclaimant to have, and assert, a basis instate or Federal law for obtaining aposition listing, and the latter require-ment gives the issuer an opportunityto contest the claim before the list isdislosed.5

The rule also provides for the inter-ests of clearing agencies. By establish-ing guidelines for the mandatory issu-ance of position listings, the proposedrule clarifies the responsibility ofclearing' agencies to issuers and re-moves a potential liability perceivedby clearing agencies for the release ofparticipant information to non-issuers.Under the proposed rule, a clearingagency need not investigate an appli-cant's claim for a position listingwhich on its face meets the require-ments of paragraph (c). The Commis-sion believes that registered clearingagencies.should not become embroiledin disputes between issuers and non-issuer claimants over position listings;the depository's role is to act In accor-dance with the provisions of the pro-posed rule unless restrained by a courtor other legal authority.

Accordingly, it is proposed to amend17 CFR Part 240 by adding § 240.17Ad-8 as follows:

§ 240.17Ad-8 Transmission of securitiesposition listings.

(a) For purposes of this section, theterm "securities position listing"means, with respect to the securitiesof any issuer held by a registeredclearing agency in the name of theclearing agency or its nominee, a listof those participants in the clearingagency on whose behalf the clearingagency holds the issuer's securitiesand of the participants' respective po-sitions In such securities as of a speci-fied date. /

(b) A registered clearing agencyshall, without charge, transmit not

'The allowance of a short time period forcontesting a claim In a tender offer situa-tion reflects the compelling time constraintsof such a situation.

less frequently than annually, andmore frequently if the issuer requests,a securities position listing to eachissuer whose securities the clearingagency holds. To the extent, however,that the issuer requests securities posi-tion listings more frequently thanonce per calendar quarter, the addi-tional listings may be supplied subjectto payment by the issuer of the clear-ing agency's reasonable expenses forpreparing each additional listing.

(c) A registered clearing agency shallpromptly furnish a securities positionlisting, upon payment of the clearingagency's reasonable expenses for pre-paring'such listing, to any person whocertifies to the clearing agency in asigned statement that, after due inqui-ry and to the best of his knowledge,(1) such person is entitled under appli-cable state.law to inspect, obtain orotherwise gain access to the subject is-suer's list of shareholders of recordand has obtained from the issueraccess to, or made application to theissuer for, such list, or (2) such personis entitled under Federal law, or rulesor regulations thereunder, to a securi-ties position listing or listing of an is-suer's shareholders of record, or (3)the subject issuer accedes to such per-son's request for a securities positionlisting. The claimant shall further cer-tify to the clearing agency that asigned copy of the claim has beengiven to the Secretary of the subjectissuer five business days (unless theclaimant is a bidder in a tender offersubject to Section 14(d) of the Securi-ties Exchange Act of 1934, or the rulesand fregulations thereunder, in whichcase the period shall be one businessday), not to include week-ends orpublic holidays, prior to presentationof the claim to the clearing agency. Inthe event that a party certifies his en-titlement to a securities position list-ng pursuant to alternatives (1) or (2),

the claim also must specify the appli-cable state or Federal authority and, ifnecessary, steps taken to domplytherewith.

(d) It shall be unlawful for anyperson willfully to violate any provi-sion of this rule or knowingly and will-fully to certify any information pursu-ant to this rule which is false or mis-leading with respect to any materialfact.

Interested persons are invited tosubmit their views upon proposedRule 17Ad-8 in triplicate to George A.Fitzsimmons, Secretary, Securities andExchange Commission, 500 NorthCapitol Street, Washington, D.C.20549, no later than April 30, 1978.Reference should be made to File No.S7-737. All comments received will beavailable for public inspection.

By the Commission.

GEORGE A. FITzsImmoNs,Secretary.

FEBRUARY 22, 1978.[EFR Doc. .78-5339 Filed 2-28-78; 8:45 am]

[6740-02f

DEPARTMENT OF ENERGY

Federal Energy Regulalory Commission

[18 CFR Parts 2, 1541[Docket No. RM78-43

INCORPORATION OF COMPENSATIONPROVISIONS IN CURTAILMENT PLANS

Extension of Comment Period

AGENCY: Federal Energy RegulatoryCommission.ACTION: Further extension of time.SUMMARY: The Commission Is grant-ing an extension of time to and Includ-ing March 1, 1978, for filing initialcomments and to and including April3, 1978, for filing reply comments inthe proposed rulemaking proceedingdocketed as RM78-4. This extension isbeing granted in order to ensure thatall parties have adequate time Inwhich to respond to the proposed rule-making.DATES: Initial comments must be re-ceived on or before March 1, 1978, andreply comments must, be received on

,or before April 3, 1978.

ADDRESS: Send comments to: Secre-tary, Federal Energy Regulatory Com-mission, 825 North Capitol Street NE.,Washington, D.C. 20426.FOR FURTHER INFORMATIONCONTACT:

Kenneth F. Plumb, Secretary, 202-275-4166.

SUPPLEMENTARY INFORMATION:On February 2, 1978, the Puerto RicoManufacturers Association filed amotion requesting a further extensionof time for submitting written com-ments on the Preliminary Notice ofProposed Rulemaking, issued Novem-,ber 30, 1977, and published December8, 1977 (42 FR 62018). A previous ex-tension of time for filing Initial andreply comments in this proceeding wasgranted by Commission Notice issuedDecember 23, 1977. (43 FR 1509, Jan.10, 1978.)

KENNETH F. PLUMB,Secretary

[FR Doc. 78-5369 Filed 2-28-78; 8:45 am]

[4810-31]

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

[27 CFR Parts 6, 8]

[Reference Notice No. 315]

UNLAWFUL TRADE PRACTICES UNDER THEFEDERAL ALCOHOL ADMINISTRATION ACT

Extension of Comment Period

AGENCY: Bureau of Alcohol, Tobaccoand Firearms.


8270

PROPOSED RULES

ACTION: Extension of period forfiling written comments.SUMMARY: On December 30, 1977,the Bureau of Alcohol, Tobacco andFirearms published an advance noticeof proposed rulemaking in the FEDERALREGIsTER [42 FR 65204]. That ad-vance notice announced that ATF wasconsidering proposing new and amend-ed regulations implementing the un-lawful trade practice provisions of theFederal Alcohol Administration Act.Interested, persons were given untilFebruary 28, 1978, to submit theirwritten comments.

A number of industry members andindividuals have requested additionaltime in which to submit their writtencomments. The Director feels that ex-tending the comment period untilApril 15, 1978, will provide adequatetime for the preparation and submis-sion of written comments by interest-ed persons.

DATE: Comments must be received onor before April 15, 1978.ADDRESS: Director, Bureau of Alco-hol, Tobacco and Firearms, Washing-ton, D.C. 20226 (Attention: Chief, Reg-ulations and Procedures Division).


Charles N. Bacon, Research andRegulations Branch, Bureau of Alco-hol, Tobacco and Firearms, Wash-ington, D.C. 20226, telephone 202-566-7626.-

REx D. DAVIS,Director.

-FEBRUARY 27, 1978.[FR Doc. 78-5589 Filed 2-28-78; 10:52 nail

[3810-701

DEPARTMENT OF DEFENSE

Office of the Secretary

[32 CFR Part 288]

[DoD Instruction No. 7230.7]

USER CHARGESSchedules of Fees and Rates

AGENCY: Office of the Secretary ofDefense.

- ACTION: Proposed rule.SUMMARY: The Department of De-fense is proposing changes to its"Schedule of Fees and Rates." Thefees and rates apply to certain servicesrelating to copying, certifying, andsearching of records rendered to thepublic. The changes are necessary toreflect increases in consumer prices.

DATES: Comments must be receivedby March 31, 1978.ADDRESS: Send comments to: Officeof the Deputy Assistant Secretary of

Defense (Management Systems), thePentagon, Room 3E831, Washington,D.C. 20301.FOR FURTHER INFORMATIONCONTACT.

Mr. Robert E. Flaherty, 202-97-7297.

SUPPLEMENTARY INFORMATION:In FR Doe 67-4159 as published in theFEDERAL REGiSTER on April 14, 1967 (32FR 6025), the Office of the Secretaryof Defense issued this part establish-ing policies and procedures for im-proved implementation of the "usercharges" as expressed in Title V of theIndependent Offices AppropriationAct of 1952 (5 U.S.C. 140) and Bureauof the Budget Circular No. A-25. Sep-tember 23, 1959, as amended, Subject;"User Charges." Subsequently, therewere published modifications to cer-tain sections of this part; namely, 34FR 12339 of July 26, 1969; 36 FR 22236of November 23, 1971; 37 FR 23719 ofNovember 8, 1972, and 42 FR 62503 ofDecember 13, 1977. This proposed revi-sion adjusts the Schedule of Fees andRates to reflect consumer price in-creases since the Schedule was lastpublished. Accordingly, § 288.10 is re-vised as follows:

Sec.288.10 Schedule of fees and rate

Aum-olrry. 5 U.S. Code, sec. 140; Title V.Pub. 2. 137, 82d Cong.. Act of Aug. 31, 1951,65 Stat. 290.

§ 288.10 Schedule of fees and rates.(a) The schedule applies to autho-

rized services related to copying, certi-fying and searching records renderedto the public by Components of theDepartment of Defense, except whenthose services are excluded or except-ed from charges under § 288.3(d) of, or§ 288.9 to, this Instruction. Except asprovided in special cases prescribedbelow, a minimum fee of $2.40 will belevied for processing any chargeablecase. Normally only one (1) copy ofany record or document will be pro-vided.

(b) Requests involving:(1) Training and education(i) Ti-anscripts

FeeOriginal copy $2.40Each additional copy .30

(Includes requests for transcripts of graduattnfrom military academies and .chool:.)

(i) CertificatesOriginal copy $7.40Each additional copy .30

(Includes all requests for certiflcates verificationof attendance, and course completion from serviceschools and other facilities.)

(2) Medical and dental records of pa-tients and former patients when re-quested for purposes other than furthertreatment. Covers requests for infor-mation from or copies of medical re-cords, including Clinical Records (in-

8271

patient records of military and nonmi-litary patients), Health Records (mri-tary outpatient records), OutpatientRecords (nonmilitary outpatient re-cords), Dental Records, and loan of X-rays.

Searching and procesing (per hour).Minimum chargeEach typewritten pageOffice copy reproductions (per Image)...Loa of each X-rayCopy of X.ray 8 nby 10 in10inbyl2Ln14 in by 17 In

$9.60&002.40

.08LBO1.802.403.60

(3) Military Membership and Record(Excluding Medical and Dental Re-cords.)

Addres of record. each $2.40

Copies of releasable military person-nel records, such as effectiveness re-ports for officers and enlisted person-nel reproduced for the personal use ofactive, retired and former members ornext of kin of missing in action or de-ceased member of the Armed Forcer,

Minimum charge -(up to 6 reproducedImages) $2.40

Each addItIonal Image C6Statement of verification of service of

report of separation. for individualswith other than honorable discharges- 3.60

(4) Photography.(I) Still pictorial or documentary

photographic prints, and not morethan three prints may be sold fromany individual negative on each order.Unlisted standard sizes of prints maybe furnished, if available, at propor-tionate rates.

8 in by 10 in single weight glossy finih,1st print $1.50

2d and 3d prints. each_____________ 1.208 in by 10 in double weight matte

Ist print 2.002d and 3d prints. each_ _ .011 In by 14 in double weight matte

finish. each . _ 4.2016 In by 20 In double weight, matte

fInhh ech ________________ 5.5020 In by 24 in double weight matte

finish, each _ _ _ _ .7535 m color transparency slide made

from color negative material 4.2035 m duplicate from 35 mn slide - .e04 in by 5 In black and white negative.

each 2.254 in by 5 In color tranaparencies or color-

negative, each _8_.08 In by 10 in color transparencies or

color negative, each (In quantities notto exceed lhree copies of any oneview) 16.75

8 in by 10 In color type -C- print. Lstprint 5.40

2d and 3d prints, each 2.4011 In by 14 in color type -C prInus 1st

print 9.6a2d and 3d prints, each_ _ _ 6.001 In by 20 In color type -C" print, each. 21.C016 in by 20 In color type -C- print.

mounted on 20 in by 24 n cardboard.e ,ch 23.00

70 mm color nternegatlve. each.-........ 7.0

(ii) Aerial photographic prints, con-tact prints, or exact negative sizes,single weight glossy or double weightsemi.matte, black and white, perframe.


PROPOSED RULES

Contact prints Fee

10 mmu film .... . $2406 In by 5 in. paper or film . ... ...... 2.409 In by 9 in. 10 in by, IG in. paper-.- 2.409 In by 9 i1o in by 10 in,filn. ........... 3.60

Enlargements

9 In by 9 in (from 70 rm only). paper..... .409 in by 9 In (from 70 mm only), film........ 3.6012 in by 12 in thru, 16 i by- 16 in (I.SX).

paper. . ...................... 4.8018 in by 18 in thru 20 in by 20 in (2X).

paper ......................... ......... 6.0024 in by 24 in thru 30 In by 30 in (3X),

paper ........................................ - 1.2036 in by 36 in thru 40 in by 40 in (X).

paper ............................................. ..... 14.40

For an intermediate-size enlargement, use theprice listed fOr the next larger size.

(I1) Aerial photographic indices andmosaic copies, each.lo in by 12 in .......................... .. ...... $3.6020 in by 24 in ................... .. 6.00

(iv) Reproduction of cover overlays,each.

Transparent foil film overlays ............. $5.00Transparent paper overlays ..................... 1.80

(v) Motion Picture.

Price perfoot

Contact Reduction

Color

16 m work print (negative/positive) ............ $0.17 $0.24

16 mm. reversal work print .17 .2416 m master positive ... .37 .6416 mm dupe negative (from

master positive).- ....... .48 .5316 mm reversal dupe negative. .48 .5316 mm internegative (from

reversal orlginal) ......... 1.00 -. ..............16 mm short rolls (under 200

it). add........---...- .06 to, basic price16 mmt ab to tab printing.

add ........................................... 15 ta baslc price35 nun work print (negative/

positive) . .......................... 2Z ................35 mm. master positive ... ............ 72 .35 nun dupe negative .......... .72 -. ..............35 mm reversal duper negative. 1.20 ..............35 mm short rolls (under 400

ft), add ............... .06 to basic price35 mma tab to tab printing.

add ......................... .18 to basia price

Black and white

16 mm work print (negative/positive) ..................... ....... .10 .16

16 mma master positive (finegrain) .................................... .. .13 .17

16 mm dupe negative ............... .20 .2616 mm short rolls (under 200

fit), and ......................... 06 to basic price16 mm tab to tab printing,

add............................... .07 to basic price35 mm work print ............... .11 ................35 mm master positive......-. . 14 ..............

35 nun dupe negative ............... .24 ............35 mm short rolls (under 400.

ft) add .......... ............... 06 to basic price35 mm tab to tab printing.

add ..................................... .03 to basic price

Magnetic tape

Dub (16 mam. 35 mm, % In)per hour ...... ........ .............. 6C

Miscellaneous

Searching. each hour orfraction thereof .................... ............. 1

Mlnimurnlcharge i~er order(including stock search) .................. 30

16 mm film to 2 Inch videotape (does not Include tape)per hour ................. .............................. 270

Minimum charge ............. ... .. 150

(5) Construction and engineering in-formation. Copies of aerial photo-graph maps, specifications permits,charts, blueprints, and other technicalengineering documents.

Searching, per hour or fraction thereof Fee(including overhead costs)................. $9.60

First print .................................... 1.80Each additionalprint orsame'documen .60

(6) Copiez of medical articles- and il-lustrations; Standards contained inTitle V of the Independent Offices Ap-propriation Act of 1952 (5 U.S.C. 140)will be utilized in computing costs.

(7) Claims, Litigation. (Includescourt-martial records furnishing infor-mation from Report of' Claims Investi-gations, e.g., automobile collision in-vestigations, safety reports, etc.)

Requests pertaining to private litiga-tion and to cases in which the UnitedStates is a party and where court rulesprovide for reproduction of recordswithout cost to the Government (ifnot covered in (2) or (3) above.

Searching processing,(per hour) ......... $9.60Minimum charge ...................... 6.00Office copy reproductions (minimum up

to six (6) reproduced images) ................ 2.40Each addltlonal tnage... ......... . .06Certificatiorr and validation with seal.

each .... .... ........ ....... 3.60

NoTE-Charges for professional search or re-search will be made In accordance with paragraph(10) below.

(8) Publications and Forms. Asearch and/or processing fee as pre-scribed in (10), below, will be made forrequests requiring extensive time (onehour or more).

(i) Shelf Stock. (Requestors may befurnished more than one copy of pub-lication or form if it does not depletestock levels below projected plannedusage.)

Minimum fee per request (up to 6 repropages) .......................................... ...... $2.4

plusForms, per copy ........... .06Publications. per printed page ............. .01

(Examples: Cost of 20 forms. $,.60; cost of a pub-lication with 100 pages.$3A0.)

(ii)" Office copy reproduction (whenshelf stock is not available).

Minimum charge (up to 6' reproducedpages) .................................................... $2.40

Each additional image ............................ .06

(9) Engineering data (microfilm).

Aperture cardsSilver duplicate negative, per card-....... $0.50When key punched and verified. per

card ........................................................ .60Diazo duplicate negative. per card ........... .42Vhen key punched and verified, per'card . ... ................................ .50

35 nun roll film. per frame..............3616 mm roll film. per frame-....n.e. .30Paper prints (engineering drawings).

each ...................................................... .60Paberreprints ofndcofilm, ldlceseach .06

(10) General. Charges for any addi-tional services not specifically pro-vided above and consistent with theprovisions of the basic instruction willbe made by the respective DoD Com-ponents at the following rates:

FeClerical search and processing per hour.. $9,60Minimum charge ........................................ 0,00Professional searching or researching ......................

(to be established at actual hourlyrate prior to search. A minimumcharge will be established at 1/ hourlyrate.)Minimum charge for office copy repro., duction (minimum up to 0 Images) ........ $2.40Each additional Image .......... .................... . .00Each typewritten page .............................. 2.40Certification and validation with see;

each............. .... .......................... 3.0Hand drawn plots' and sketches., each

hour or fraction thereof .............. 1.20

MAURICE W. RociE,Director, Correspondence and

Directives, Washington Head.quarters Service, Departmentof Defense.

FBRuARY 23, 1978.IFU Doc. 78-5381 Filed12-28-18 8:45 am]

[4310-10]

DEPARTMENT OF THE INTERIOR'Office of the Secretary

[41 CFR Part 114-501

UNIFORM RELOCATION ASSISTANCE ANDREAL PROPERTY ACQUISITION POLICIES

Relocation Assistance Advisory Services

AGENCY: Office of the Secretary, In.terior.ACTION: Notice of proposed rulemak-ing.SUMMARY: This notice Invites com-ments on a proposal to amend Depart-mental regulations pertaining to Im-plementation and administration ofactivities under the Uniform Reloca-tion Assistance and Real Property Ac-quisition Policies Act of 1970 (Pub. L.91-646). The amendment wouldmodify existing requirements relativeto determination of the need for devel-opment of a relocation assistance planand establish review and approval pro-cedures when a plan is required.DATE: Comments must be received byApril 10, 1978.ADDRESS: Send comments to theChief, Division of Property Manage-ment, Office of Administrative andManagement Policy (PM/AMP), room5310, Department of the Interior.Washington, D.C. 20240.FOR FURTHER INFORMATIONCONTACT:

James O. Wyatt, Chief, Division ofProperty Management, telephqnenumber area code 202-343-3185.

SUPPLEMENTAL INFORMATION:All written comments made pursuantto this notice will be available forpublic inspection at the Division ofProperty Management (Am. 5310) De-partment of the Interior, during regu-lar business hours. 7:45 a.m. to 4:15p.m. (except holidays). The primaryauthor of this proposal is George W.Sandberg, Room 5310, Department ofthe Interior, Washington. D.C.. 20240.Phone 343-3185.


8272'

PROPOSED RULES

Nor_.-The Department of the Interiorhas determined that this document does notcontain a major proposal requiring prepara-tion of an Economic Impact Statementunder Executive Order 11949 and OMB Cir-cular No. A-107.

RIcHARD R. Hrru,Deputy Assistant Secretary of the

Department of the Interior.FEBRUARY 21, 1978.

41 CFR. 114-50 is amended as fol-lows:

Amend § 114-50.402 to read as fol-lows:

§114-50.402 Relocation plan.In conjunction 'with a project pro-

posal involving acquisition of realproperty, a determination must bemade during the pre-authorizationplanning phase whether the real prop-erty acquisition activities will result inthe displacement of persons fromtheir dwellings, businesses, or farm op-erations. Where land acquisition ac-tivities will cause such displacement, arelocation plan shall be developedprior to commencement of acquisitionactivities in* accordance with proce-dures outlined in § 114-50.500.

(a) The plan shall include the fol-lowing information, as a minimum:-(1) The estimated number of individ-ual families, businesses, farm oper-ations, and non-profit organizationswhich are to be relocated.

(2) The availability of decent, safeand sanitary replacement housing(both sale and rental) within the fi-nancial mans of the individuals andfamilies being displaced.

(3) The probable impact of otherfederal and/or federally-assisted relo-cation programs on the availability ofreplacement housing.

(4) The estimated total cost, by cate-gory (moving expense, replacementhousing for homeowner, etc.), of pay-ments to displaced persons.

(5) The estimated cost of administer-ing required relocation services to dis-placed persons.

(6) The name and title of the personresponsible for preparation of the planand the date of preparation.

(b) Each relocation plan shall be:(1) Coordinated with other Federal

and State agencies and private con-cerns having relocation programswithin the project area, to ensure thatthe real estate market from which re-placement housing will be obtained iscapable of supplying. the demands ofall users of housing. <See also § 114-50.403 and 114-50.404); and

(2) Updated periodically to reflectcurrent real estate conditions. Whenfunds have been appropriated for com-mencement of real property acquisi-tion, the relocation plan will be con-tinuously updated'and serve as a basisfor accomplishing required relocationactivities.

(3) Reviewed and approved at thebureau headquarters office level priorto commencement of acquisition ac-tivities, (e.g., development of propertydescriptions, title examination, ap-praisals, negotiation. etc.).

(4) Submitted (copy only) when ap-proved, to the Assistant Secretary-Policy, Budget and Administration(AMP/PM).

(c) A more elaborate relocation planmay be required in instances where ac-quisition of real property for a pro-gram or project will result in the dis-placement of a substantial number ofpersons in a metropolitan area, par-ticularly where low or moderateincome persons are involved. In anysuch instances, Bureaus and Officesshall be guided by the relocationplnanning instructions promulgatedby the Department of Housing andUrban Development In Its RelocationHandbook 1371.1.

[PR Doc. 78-5299 Filed 2-28-78:8:45 am]

[6712-01]

FEDERAL COMMUNICATIONSCOMMiSSION

[47 CFR Part 73]

[BC Docket No. 78-65; RM-29871

FM BROADCAST STATION IN BELPPE, OHIO

Proposed Changes In Table of Assignments

AGENCY: Federal CommunicationsCommission. *ACTION: Notice of proposed rulemak-lng.

SUMMARY: Action taken herein pro-poses the assignment of a Class A FMchannel to Belpre, Ohio, as that com-munity's first FM assignment. Peti-tioner, Max Bungard, states the pro-posed channel could provide a firstlocal aural broadcast service to Belpre.DATES: Comments must be receivedon or before April 18, 1978, and replycomments on 'or before May 8, 1978.ADDRESSES: Federal Communica-tions Commission, Washington, D.C.20554.FOR FURTHER INFORMATIONCONTACT.

Mildred B. Nesterak, BroadcastBureau, 202-632-7792.

SUPPLEMENTARY INFORMATION:

NovrcE or PnoPosEm RuLEm o=G

Adopted: February 17, 1978.Released: February 24, 1978.

In the matter of amendment of§ 73.202(b), Table of Assignments, FMBroadcast Stations (Belpre, Ohio), BCDocket No. 78-65, RM-2987.

By the Chief, Broadcast Bureau.1. Petitioner, proposa, comments.

(a) Petition for rulemaking, 2 filed byMax Bungard ("petitioner"), propos-ing the assignment of Channel 296A toBelpre, Ohio, as a first FM assignmentto that community. No responses tothe proposal were received.

(b) The channel can be assigned inconformity with the minimum dis-tance separation requirements.

(c) Petitioner states that if the chan-nel is assigned, he will apply for it.

2. Community data. (a) 'Location.Belpre, in Washington County, is lo-cated 256 kilometers (160 miles) eastof Cincinnati, Ohio, and 120 kilome-ters (75 miles) southwest of Wheeling,W. Va.

(b) Population. Belpre-7,189; Wash-ington County-57,160.2

(c) Local broadcast service. There isno local aural broadcast service inBelpre. However, It receives servicefrom Marietta,-Ohio, and Parkersburg,W. Va., located 19 kilometers (12miles) and 8 kilometers (5 miles) dis-tant, respectively.

3. Economic data. Petitioner statesthat there was a 32.7 percent increasein Belpre's population between 1960-70. We are told that the Belpre subdi-vision of Washington County is ex-panding and growing faster than mostother county subdivisions and hasbecome the home of a large base of in-dustry, finance, transportation andeducation. Petitioner asserts that theproposed station would give the resi-dents of Belpre and surrounding areain the southern part of WashingtonCounty their first local full-time facili-ty.

4. Preclusion studie. Because BelpreIs part of a metropolitan area (Mariet-ta, Ohio, approximately 19 kilometers(12 miles) distant, and Parkersburg,W. Va., approximately 8 kilometers (5miles) distant), a preclusion study wasmade. The study indicates that preclu-sion would occur only on the co-chan-nel. Four communities (Marietta,Ohio, population 16,861, Parkersburg.44,208, Willlamstown, 2,743, and St.Marys, W. Va., 2,348) would be affect-ed as a result of the proposed assign-ment. However, Marietta, Parkers-burg, and St. Marys have one or moreFM assfgnments. Willamstown has nolocal aural service, but is located' hn-mediately across the Ohio River fromMarietta. Moreover, It is much smaller -than Belpre.

5. In view of the apparent need for afirst local aural broadcast service inBelpre and the fact that preclusionwould not be an impediment, the Com-mission proposes to amend the FMTable of Assignments, § 73.202(b) ofthe Commission's rules as follows:

City and Channel No.Belpre. Ohio; Present:-; Proposed: 296A.

'Public Notice of the petition was given onNovember 7,1977, Report No. 1088.

2Population figures are taken frois the1970 US. Census.

FEDERAL REGISTER, VOL 43, NO. 41-WENESDAY, MARCH 1, 1978

8273

PROPOSED RULES

6. Authority to institute rule makingproceedings; showings required; cut-off procedures; and filing require.ments are set forth below and are in-corporated herein.

NoTE.-A showing of continuing interest isrequired by paragraph 2 before a channelwill be assigned.

7. Interested parties may file- com-ments on or before April 18 1978, andreply comments on or before May 8.1978.

FiMEnR COMMUNICATIONSCoI=mUSSlON,WALLACE E. JOHNSON,

Chief, Broadcast Bureau.1. Pursuant to authority found in

sections 4(i), 5(d)(1), 303 (g) and (r),and 307(b) of the Communications Actof 1934, as amended, and § 0.281(b)(6)of the Commission's Rules, it is pro-posed to amend the FM Table of As-signments, § 73.202(b) of the Commis-sion's rules and regulations, as setforth in the Notice of proposed rulemaking to which this appendix is at-tached.

2. Showings required. Comments areInvited on the proposal(s) discussed inthe Notice of proposed rulemaking towhich this Appendix is attached.Proponent(s) will be expected toanswer whatever questions are pre-sented in initial comments. The propo-nent of a proposed assignment is alsoexpected to file comments even if itonly resubmits or incorporates by ref-erence its former pleadings. It shouldalso restate Its present, intention toapply for the channel if it is assigned,and, if authorized, to build the stationpromptly. Failure to file may lead todenial of the request.

3. Cut-off procedures. The followingprocedures will govern, the consider-ation of filings in this proceeding.

(a) Counterproposals advanced inthis proceeding itself will be consid-ered, if advanced in initial comments,so that parties may, comment on themin reply comments. They will not beconsidered if advanced in reply com-ments. (See § 1.420(d) of CommissionRules.)

(b) With respect to petitions for ru-lemaking which conflict with theproposal(s) in this Notice, they will beconsidered as comments in the pro-ceeding, and Public Notice to thiseffect will be given as long as they arefiled before the date for filing initialcomments herein. If they are filedlater than that, they'will not be con-sidered in connection with the decisionIn this docket,

4. Comments and reply comments;service Pursuant to applicable proce-dures set out in §§,L415 and 1.420 ofthe Commission's rules and regula-tions, interested parties may file com-ments and reply comments on orbefore the dates set forth in theNotice of proposed rulemaking towhich this appendix is attached. All,submissions by parties to this proceed-ing or persons acting on behalf of such

parties must be made in written com-ments, reply comments, or other ap-propriate pleadings. Comments shallbe served on the petitioner by theperson filing the comments. Replycomments shall be served on theperson(s) who filed comments towhich the reply is directed. Such com-ments andreply comments shall be ac-companied by a certificate of service.(See- § 1.420 (a), (b), and (c) of theCommission Rules.)

5. Number of copies. In accordancewith the provisions of Section 1.420 ofthe Commission' Rules and Regula-tions, an original and four copies of allcomments, reply comments, pleadings,briefs, or other documents shall befurnished the Commission.

6. Public inspection offilings. All fil-ings made in this proceeding will beavailable for examination, by interest-ed parties during regular- businesshours in the Commission's Public Ref-erence Room at its headquarters, 1919M Street NW., Washington, D.C.

[FR Dce. 78-5399 Filed 2-28-78; 8:45 am]

[6712-01][47 CFR Part 731

[BC Docket No. 78-66; RMA-2984]FM BROADCAST STATION IN ONALASKA, WIS.

Proposed Changes in Table of Assignmenfs

AGENCY: Federal CommunicationsCommission.ACTION: Notice of proposed rulemak-ing.

SUMMARY: Action taken herein pro-poses the assignment of a first Class AFM channel to Onalaska, Wis. Peti-tioner, Everybody's Mood, Inc., statesthat the proposed station could pro-vide Onalaska with a first local auralbroadcast service.

DATES: Comments must be receivedon or before April 18, 1978, and replycomments on on before May ;8. 1978.ADDRESSES: Federal Communica-tions Commission, Washington, D.C.20554. -


Mildred B. Nesterak, BroadcastBureau, 202-632-7792.

SUPPLEMENTARY INFORMATION:

NOTICE OF PROPOSED RuulAKING

Adopted: February 17, 1978.Releasecf February 24. 1978-

In the matter of amendment of§ 73.202(b), Table of Assignments, F1Broadcast Stations (Onalaska, Wis..)BC Docket No. 78-66, RM-2984.

By the Chief, Broadcast Bureau.IL Petitioner, proposal, comments.

(a) Petition for rulemaking, t filed Oc-tober 4, 1977, by. Everybody's Mood,

'Public Notice of the petition was given onOctober 25, 1977, Report No. 1084.

Inc. ("petitioner"), proposing the as-signment of Channel 261A to Ona,laska, Wis., as a first FM assignmentto that community. No responses weremade to the proposal.

(b) Petitioner states It will promptlyapply for the channel, if assigned.

2. Community data. (a) Location.Onalaska, in La Crosse County, Is lo-cated 290 kilometers (182 miles) north-west of Milwaukee, and adjacent to LaCrosse, Wisconsin.

(b) Population. Onalaska-4,909: LaCrosse County-80,468.,

(c) Local broadcast service. There isno local aural broadcast service In On-alaska. It receives service from AMStations WIZM, WKT= and W1JCXand FM Stations WIZM-FM, WSPL-FM, and WLXR-FM in La Crosse.

3. Economic data. Petitioner statesthat the population of Onalaska hasincreased over 55 percent between1960-70. It notes that Onalaska is acenter for agriculture and industry forthe area. Petitioner offers a descrip-tion of Onalaska's form of govern-ment, ,the local geography, schoolsystem, industrial and commercial ac-tivity and other material In an effortto show the need for the assignment.

4. Preclusion studies. Preclusionwould be caused on the co-channelonly. Sparta, Wis. (population 6,258) isthe only community of over 1,000 pop,ulation that would be precluded. Thatwould not be an impediment to the as-signment as Sparta already has AMand FM stations.

5. Other considerations. Petitionerproposes a transmitter site seven mileseast of Onalaska in order to meet the160 kilometer (105 miles) distance sep-aration requirement to Station KAUS-FM (Channel 260) in Austin, Minn,,and the 105 kilometer (65 miles) dis.tance separation requirement to Sta-tion WBIZ-FM (Channel 264) in EauClaire, Wis. However, this location willplace a 366 meter (1,200 feet m.s.l.)peak between the transmitter site andthe community to be served. The peakappears to extend approximately 137meters (450 feet) above the groundlevel of the transmitter site and Ona-laska. Section 73.315(b) provides,among others, that the locationshould be so chosen that line-of-sightcan be obtained from the antenna overthe principal city or cities to be servedand that in no event should there be amajor obstruction in this path. Peti-tioner should address this issues andsubmit terrain profiles between theproposed site and Onalaska andshould show the expected signal levelsin the service area.

'Population figures are taken from the19,0 U.S. Census.

sAlthough petitioner claims that Ona.laska, would be encompassed within the 70dBu contour, data in support of this asser-tion Is lacking, and the effects of shadowing

(Continued)


8274

PROPOSED RULES

6. Comments are invited on the pro-posal to amend the FM Table of As-signments with regard to the commu-nity of Onalaska, Wis., as follows:

City and CMaunnel No.Onaiaska, Wis., Present: -; Proposed: 261A.

7. The Commision's authority to n-stitute rulemaking proceedings; show-ings required; cut-off procedures; andfiling rquirements are set forth belowand are incorporated herein.

NoTE.-A showing of continuing Interest isrequired by 'aragraph 2 before a channelwill be assigned.

8. Interested persons may file com-ments on or before April 18, 1978, andreply comments on or before May 8.1978.

FEERAL COMMUNICATIONSCo ONssroN,

WALLACE W. JOHNSON,Chiej, Broadcast Bureau.

1. Pursuant to authority found Insections 4(i), 5(d)(1), 303 (g) and (r),and 307(b) of the Communications Actof 1934, as amended, and § 0.281(b)(6)of the Commission's Rules, it is pro-posed to amend the FM Table of As-signments, Section 73.202(b) of theCommission's Rules and Regulations,as set forth in the notice of proposedrulemaking to which this appendix isattached.

2. Showings required. Comments areinvited on the proposal(s) discussed inthe Notice of proposed rulemaking towhich this Appendix is attached.Proponent(s) will be expected toanswer whatever questions are pre-sented in initial comments. The propo-nent of a proposed assignnient is alsoexpected -to file comments even if itonly resubmits or incorporates by ref-erence its former pleadings. It shouldalso restate its present intention toapply for the channel if it is assigned,and, if authorized, to build the stationpromptly. Failure to file may lead todenial of the request.

3. Cut-off Procedures. The following'procedures will govern-the consider-ation of filings in this proceeding.

(a) Counterproliosals advanced inthis, proceeding itself will be consid-ered, if advanced in initial comments,so that parties may comment on themin reply comments. They will not beconsidered if advanced in reply com-ments. (See § 1.420(d) of CommissionRules.)

(b) With respect to petitions for rulemaking which conflict with theproposal(s) in this Notice, they will beconsidered as comments in the pro-ceeding, and Public Notice to thiseffect will be given as long as they are

(Continued)have not been considered. These are matterswhich would have to be resolved before theassignment could be made. See Bloomsburg,Pa., 34 FCC 2d 940 (1972); Attica-Warsaw,N.Y., 54 FCC 2d 1137 (1975).

filed before the date for filing initialcomments herein. If they are filedlater than that they will not be con-sidered in connection with the decisionin this docket.

4. Comments and reply comments;service. Pursuant to applicable proce-dures set out in §§ 1.415 and 1.420 ofthe Commission's rules and regula-tions, interested parties may file com-ments and reply comments on orbefore the dates set forth in the noticeof proposed rulemaking to which thisappendix is attached. All submissionsby parties to this proceeding or per-sons acting on behalf of such partiesmust be made In written comments,reply comments, or other appropriatepleadings. Comments shall be servedon the petitioner by the person filingthe comments. Reply comments shallbe served on the person(s) who filedcomments to which the reply is direct-ed. Such comments and reply com-ments shall be accompanied by a certi-ficate of service. (See § 1.420 (a), (b),and (c) of the Commission Rules.)

5. Number of copies. In accordancewith the provisions of Section 1.420 ofthe Commission's Rules and Regula-tions, an original and four copies of allcomments, reply comments, pleadings,briefs, or other documents shall befurnished the Commission.

6. Public inspection offifings. All fil-ings made In tfis proceeding will beavailable for examination by interest-ed parties during regular businesshours in the Commission's Public Ref-erence Room at its headquarters, 1919M Street NW., Washington. D.C.

FR Doc. 718-5400 Filed 2-28-78; 8:45 am]

[6712-01i

[47 CFR Pat 761

MDocket No. 214721

"SATURATED" CABLE TELEVISION SYSTEMS

Order Extending Time for Filing Comments andReply Comments

AGENCY: Federal CommunicationsCommission.

ACTION: Extension of time.SUMMARY: In response to a requestby Counsel for the Public Broadcast-ing Service, and for good cause shown,a two week extension of time is grant-ed to submit comments in response tothe notice of proposed rulemaking InDocket 21472. This proceeding Is con-cerned with problems associated withcable television systems that are re-quired to carry more broadcast signalsthan they have capacity to carry.DATES: Comments must now be re-ceived on or before March 9, 1978, andreply comments on or before April 10,1978.ADDRESSES: Office of the Secretary,Federal Communications Commission,

1919 M Street NV., Washington, D.C.20554.

FOR FURTHER INFORMATION:

Contact James A. Hudgens, CableTelevision Bureau, 202-632-6468.

SUPPLEMENTARY INFORMATION:Adopted: February 17, 1978.Released: February 22, 1978.

In the matter of amendment of Part76 of the Commission's rules and regu-lations (sections 76.59-76.63) with re-spect to "saturated" Cable TelevisionSystems. Order (43 FR 3598).

1. In the notice of proposed rulemak-ing in the above-entitled proceeding,the dates originally designated forcomments and reply comments wereJanuary 23 and February 22, 1978, re-spectively. However, requests for anextension of time were submitted bythe Community Antenna TelevisionAssociation and Viacom International,Inc. Good cause having been showntherefor, by Order of January 18,1978, an extension of time was grantedto the dates of February 23 and March27, 1978.

2. Now a request for a further exten-sion of time for a period of 2 weekshas been submitted by Counsel for thePublic Broadcasting Service (Arent,Fox, Kintner, Plotkin & Kahn). Insupport thereof, petitioners state thatthe Issues raised in the proceeding aremore difficult and time-consumingthan anticipated, and that the time isneeded to finalize the preparation ofthe Comments and to permit neededconsultation between house counseland outside counsel. Additionally, peti-tioners state that the requested exten-sion will permit PBS "to finish compil.Ing programming data helpful to theCommission in its analysis of thisquestion and requested in the Notice:"

3. We note that we specificallystated our intention to expedite thisproceeding in the Notice itself andthat one extension already has beengranted. However, in view of the con-siderations cited by petitioner, it ap-pears that the Commission will benefit'from the submission of the materials-described by petitioners and that goodcause has been shown for granting therequested extension.

Accordingly, it is ordered, That thedates for filing comments and. replycomments in Docket 21472 are furtherextended to March 9 and April 10,1978, respectively.

This action is taken by the Chief,Cable Television Bureau, pursuant tothe authority delegated by Section0.288 of the Commission's Rules.

FtIDliL COMUNICATIONSCOMMISSION,

JAMs R. HoBsoN,Chief, Cable Televion Bureau.

CPR Doc. 78-5401 Filed 2-28-78; 8:45 am]


8275

8276

noticesThis section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and

investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency slatomants oforganization and'functions are examples of documents appearing in this section.

[3410-16]DEPARTMENT OF AGRICULTURE

Soil Conservation Service

CADRON CREEK WATERSHEDS, ARK.,

Intent To Prepare an Amplification to the FinalEnvironmental Impact Statement

Pursuant to section 102(2)(C) of theNational Environmental Policy Act of1969: the Council on EnvironmentalQuality Guidelines (40 CFR Part1500); and the Soil Conservation Ser-vice Guidelines (7 CFR Part 650); theSoil Conservation Service, U.S. De-partment of Agriculture, gives. noticethat an amplification to the final envi-ronmental impact statement is_ beingprepared for the Cadron Creek Water-sheds, Cleburne, Conway, Faulkner,Van Buren, and White Counties, Ark.

The amplification to the environ-mental impact statement concernschanges in plan elements after thefinal impact statement was filed withthe Council on Environmental Qual-ity. The sponsors of the project elect-ed to eliminate one floodwater retard-ing structure to preserve a popularcanoeing reach on the East ForkCadron Creek.

The final environmental impactstatement was filed with the Councilon Environmental Quality on June 1,1976. The Notice of Availability offinal environmental impact statementwas submitted to the FsnRAI REGIS-TER on April 16, 1976.

The Soil Conservation Service in-vites participation of agencies and in-diViduals with expertise or interest inthe preparation of the amplificationto the final environmental impactstatement. The amplification will bedeveloped by Mr. M. J. Spears, StateConservationist, Soil ConservationService, 5029 Federal Building, P.O.Box 2323, Little Rock, Ark. 72203, 501-378-5445.(Catalog of Federal Domestic AssistanceProgram No. 10.904, Watershed Protectionand Flood Prevention Program-Pub. I83566, 16 U.S.C. 1001-1008.

Dated: February 9, 1978.JOSEPH W. HAAS,

Assistant Administrator forWater Resources, Soil Conser-vation Service, U.S. Depart-

- ment of Agriculture.

(FR Doc. 78-5286 Filed 2-28-78; 8:45 am]

[3410-16]

WATER RESOURCES PROJECT TYPE ACTIVITIES

Channel Modification Guidelines

AGENCY: Soil Conservation Service,Agriculture and Fish and Wildlife Ser-vice, Interior.ACTION: Notice of Final Guidelinesfor Use of Channel Modification as aMeans of Water Management in waterresource project type activities of theSoil Conservation Service (SCS). Theguidelines are not intended to havethe force of rules or regulations, butare published for the information ofthe interested public.

SUMMARY: An interdisciplinary teamof specialists from the Department ofthe Interior's Fish and Wildlife Ser-vice (FWS) and the Department of Ag-riculture's Soil Conservation Servicehas worked cooperatively over thepast several months to develop the at-tached guidelines for channel modifi-cation. The guidelines are based onthese professionals' own experiencedjudgment, plus the suggestions ofmany other interested Federal andState agencies, organizations, and indi-viduals whose views were solicited.The heads of both agencies, Lynn A.Greenwalt and R. M. -(Mel) Davis,have personally guided this effort andsupport the guidelines.

For the guidelines to be effective,reasoned judgment will be requiredamong professional planners, biolo-gists, and others. Compromises willneed to be negotiated. We expect usersof the guidelines to suggest refine-ments. After a reasonable period ofuse, we will review their effectivenessand rewrite them if the need Is appar-ent.

The guidelines should be studiedthoroughly and applied intelligently.In general, they provide that:

1. SCS and FWS will use an interdisciplin-ary planning process which permits a bal-ancing of the need to both maintain aviable, naturally functioning ecosystem andprovide for projected food and fiber, eco-nomic, and other social needs.

2. Measures other than channel work willbe suggested, analyzed, evaluated, and ac-cepted if channel work will cause measur-able habitat losses and if other alternativeswill contribute to project objectives withless damaging effects. Channel work nor-mally will be a "last resort" measure.

3. Channel work will not be undertakenwhen it would destroy or modify critical

habitat for endangered or threatened spc-des.

'4. Wetland types 3-20 will not be purpose-ly drained, and any indirect drainage ofthese types will be avoided unless appropri-ate nfitigation or compensation Is provided.Types 1 and 2 will be evaluated as to theirecological importance and preservationstrongly recommended in accordance withprovisions in the guidelines.

5. The inteut and spirit of the FederalWild and Scenic Rivers Act and similarState legislation will be respected.

6. Important fish and wildlife habitatvalues will be maintained or enhanced. Con-servation easements or other comparablemeans will be utilized wherever necessary toprovide reasonable protection for wetlandssubject to secondary drainage predicted tooccur as a result of, or be facilitated by,channel modification.

EFFECTIVE DATE: March 1, 1978.


Dr. F. Eugene Hester, 'Associate Di-rector, Environment and Research,U.S. Fish and Wildlife Service, 202-343-5715.

Mr. Joseph W. Haas, Assistant Ad-ministrator for Water Resources,Soil Conservation Service, 202-447-4527.

SUPPLEMENTARY INFORMATION:On August 8, 1977, the Soil Conserva-tion Service and the Fish and WildlifeService published in the FEDmL REa-isTEn (42 FR 40119) proposed guide-lines for use of channel modificationas a means of water management inwater resource project type activitiesof the Soil Conservation Service.During the 37-day commenting periodnumerous comments were receivedfrom Federal agencies, State agencies,organizations, and individuals. Allwritten comments were given consider-ation in developing the final guide-lines. The full text of all comments re-ceived is on file and available forpublic inspection in: 'Room 5226,South Agriculture Building, Washing-ton, D.C., and Room 849, 1730 KStreet NW., Washington, D.C.

Accordingly, the following finalguidelines are published for informa-tional purposes.


NOTICES

Dated: February 24, 1978.ROBERT L. HERST,

Assistant Secretary for Fish andWildlife' and Parks, Depart-ment of the Interior.

ML RuPERT CuTLER,Assistant -Secretary for Conser-

vation, Research, and Educa-tion, Department of Agricul-ture.

Cmunsun MOIFMCAiTION GUIDELINES

PR~EPARED BY

Department of the Interior, Fish andWildlife Service

Department of Agriculture; SoilConservation Service

CHANNEL MODIFICATIONGUIDELINES

Table of Contents

L IITRODUCTION

A. Purpose

B. Policy

C. Applicability

Ir. BACKGROUND

IL GUIDELINES

A. Alternatives

B. Types of channel modiication

C. Channel modification as an alternative

IV. COORDINATION ANiD INTERACTION

V. RESOLUTION OF ISSUES

CHA NSEL MODIFICATION GUIDELINES

I. INTRODUCTION'

A. Purpose

These guidelines are promulgated by theSoil Conservation Service (SCS) and theFish and Wildlife Service (FWS) to guidetheir personnel in identifying when andwhere channel modification may be used asa technique for implementing water and re-lated land resource projects. They will beused in the planning of all SCS projects ormeasures which qualify for eith~er technical.financial, and/or credit assistance under theauthorities for flood prevention projects.small watershed projects, and resource con-servation and development projects. Theseprogram authorities contain provisions formaintaining and enhancing fish and wildliferesources as well as achieving other watermanagement objectives.

B. PolicyIt is the policy of SCS and FWS that care

and effort will be made- to maintain and re-store streams, wetlands, and riparian vege-tation as functioning parts of a vable eco-system upon which fish and wildlife re-sources depend.

It is also the policy of SCS and FIVS touse an interdisciplinary planning processwhich will permit a balancing of the need tomaintain a viable, naturally functioning eco-system and projected food and fiber, eco-nomic, and other social needs.

The application of these guidelines, theresource inventory, interpretation, and

planning assistance provided by SCS and17WS will ensure Identification and consider-ation of alternatives to channel modifica-tion.

C Applicability

These guidelines become effective as ofthe date they are approved. They will be ap-plied to: (1) All new planning starts (2) allprojects in the planning phase, uniess SCSand FWS agree It is not important and fea-sible to apply the guidelines; (3) all projectsapproved for construction. (a) when supple-ments or revisions are prepared whichwould result in an increase in the amount ortype of channel modification which wouldincrease the potential adverse environmen-tal Impact; or (b) when SCS and FWS agreethat: (1) Important fish and wildlife habitatis involved and threatened; (11) project modi-fication is feasible; and (ill) project modifi-cation to minimize adverse environmentalimpact has not been accomplished as aresult of reviews mandated by the NationalEnvironmental Policy Act or other congres-slonal, Presidential, or Secretarial initia-tives." After the guidelines have been in use for ayear or more, their effectiveness will be re-viewed, and changes will be made If deter-

- mined to be necessary. These guidelinesmay be terminated at the request of eitheragency.

IL BACXGfOUZM

Congress has recognized that erosion.floodwater, and sediment can cause damageIn the watersheds of the rivers and streamsof the United States. It has found that lossof life and damage to property constitute amenace to the national welfare and that theFederal Government should cooperate withStates and their political subdivisions forthe purposes of preventing such damagesand of furthering the conservation develop-ment, utilization, and disposal of water. Inso doing, this action will alsso preserve, pro-tect. and improve the Nation's land andwater resources and the quality of the envi-ronment.

Congress has also recognized that riversand streams, wetlands, and riparian vegeta-tion constitute a valuable resource which Isvital to the public interest in naturally func-tioning ecosystems, water transport, andmaintenance of fish and wildlife popula-tions. Dependent upon the situation, wet-lands can serve as: (1) Natural flood deten-tion areas; (2) sediment and debris trap, (3)water purifiers and In recycling nutrients.(4) groundwater recharge areas; (5) nuseryareas for aquatic animal species; (6) impor-tant habitats for a wide variety of plant andanimal species, some of which have been de-pleted to the point that their continued ex-istence Is endangered: and (7) areas whichproduce highly valuable crops of timber.fish, and wildlife.

High flows In rivers and streams and perl-odic overflow have significant value In cre-ating and maintaining meandering channelsand in cleansing and redistributing sub-strates. This action by water provides rif-fles, pools, or other habitat for fish spawn-ing and rearing and production of aquaticinvertebrates. It also provides diverse plantsuccessional areas and other types of shore-line habitat that fulfill fish and wildlifefood and cover requirements. However, It Isalso recognized that many areas adjacent tostreams and wetlands are well.suited for andhave a long history of agricultural andurban uses.

8277

Channel modification, used In a sensitivemanner, Is one method that can be utilizedin solving specific water management prob-lems. It may be needed to restore a watercourse Impaired or damaged naturally orthrough man's unwise use or managementof adjacent or upstream lands. It may alsobe needed to provide a safe and healthy en-vironment and for the maintenance of exist-Ing agricultural productivity. However,channel modLfication can cause seriousdamage to fish and wildlife resource values.In addition to the direct Impacts on thestream and immediate environs, the practicehas, on occasion, led directly or indirectly tomajor drainage of wetlands, clearing of bot-tomland forests for intensive agriculture,and increased flooding and siltation indownstream areas. Channel modification forflood control, drainage, and Irrigation pro-jects has often resulted In severe conflictwith the function of the assocfated ecosys-tems. changing or reducing both the varietyand abundance of fish and wildlife re-sources.

Because of the variety of values associatedwith water, It Is incumbent upon tlh SCSand the FWS to continue to share theirtechnical expertise to help ensure decisionswhich will result In the maximum benefitsto assure long-term agricultural productiv-ity and optimum environmental quality.

i.cuinn

A. Alternatives

The guidelines for channel moclifcationwll be used when formulating alternativeplans under the Water Resources Council'sPrinciples and Standards. The planning pro-cess will include an inventory of resources,Including fish and wildlife habitats andtheir geographic delineation. It will alsoIdentify appropriate means for minimizingadverse mpac s on habitat values. Measure-ment of habitat values will be determinedon a case-by-case basis in accordance withhabitat evaluation procedures promulgatedby PWS and developed Jointly with SCS.

Alternative plans will be- formulated to:(1) Emphasize environmental quality, (2)optimize national economic development;and (3) provide varying mixes of the compo-nents 9f the environmental quality and na-tional economic development objectives. Foreach alternative plan, there will be a displayor accounting of relevant beneficial and ad-verse effect-. A comparison of the displayswill Identify trade-ofls between the environ-mental quality and economic developmentobjectives. Within this framework and incompliance with the requirements of theNational Environmental Policy Act (NEPA),equal c6nsideration will be given to environ-mental and economic and technical aspectsin the decslonmaking process.

In compliance with the mandates ofNEPA and the Water Resources Council'sPrinciples and Standards, the PWS willassist the SCS develop, evaluate, and recom-mend alternatives, if amy, to channel modifi-cation when It Is expected to cause, directlyor indirectly, measurable lc.zes of fish andwildlife resource- Charnel modificationswill not be considered if a practical alterna-tive exists. A practical alternative is onewhich meets all of the following tests: (I) isconsistent with the Water Resources Coun-cll's Principles and Standards; (2) makes asignificant contribution to project objec-tives: and (3) results in le-_ damage to fishand wildlife habitat. Thus, channel modifl-cation will normally emerge as the lastresort measure.


NOTICES

The following three broad types of alter-natives will be considered singly or in combi-nation:

1. Soil and Water Conservation practices.2. Nonstructural-nonstructural measures

may include, but are not limited to, land useregulation, land acquisition the mainte-nance of aquatic areas, floodplain zoning,floodproopfing existing buildings, floodforecasting, flood warning, flood hazard In-formation, flood insurance, tax adjust-ments, emergency assistance, and relocationof properties and people.

3. Structural-structural alternatives tochannel modification include, but are notlimited to, dams, floodways, dikes, levees(including set back levees), flood walls,pumping plants, diversions, and wetland de-velopment, maintenance, and restoration.

.B. Types of channel modification

Channel modification is defined in theseguidelines to include actions such as riprap-ping, selective snagging, clearing and snag-ging, widening, deepening, realignment, andlining, listed generally in order of ascendingimpact on fish and wildlife resources.

1. Selective Snagging-The selective re-moval of obstructions from a channel to in-crease Its capacity to convey water. This in-cludes, but is not limited to, the removal ofdowned timber and accumulations of debrisor obstructions.

2. Cleqring and Snagging-The removal ofobstructions from the channel and streambanks, including the removal of vegetationand accumulations of bedload material, toincrease Its capacity to convey water. It mayInclude the removal of sediment bars, drifts,logs, snags, boulders, piling, piers, head-walls, and debris.

3. Riprappng-The placement of irregularpermanent material such as rock In criticalareas along the watercourse to protect theearth materials against excessive erosiveforces.

4. Widening-The overall widening of achannel to restore or increase its capacity toconvey water. This usually involves clearing,snagging, and excavation of a portion of thechannel side slope(s). Where practical, wid-ening is performed on one side only with ap-propriate consideration given to alternatingfrom one side to the other.

5. Deepening-The overall deepening of achannel to increase its capacity to conveywater and/or provide drainage. Deepeningusually involves clearing or snagging and ex-cavating of a portion of the channel bottom7and the channel side slope(s).

6. Realignment-The construction of anew channel or a new alignment and mayinvolve the clearing, snagging, widening,and/or deepening of the existing channelwhere the new alignment coincides with theexisting channel. It may include straighten-ing the alignment to restore or increase thecapacity of the channel to convey water.

7. Lining-Placement of a nonvegetativeprotective lining over all or part of the pe-

rimeter of a channel to prevent erosion orto increase the capacity of the channel toconvey or conserve water.

C Channel modification as an alternative

The following criteria will be utilized Inthe planning process for determining whenchannel modification can be considered analternative. If used, channel modificationwill be the minimum required, either aloneor in combination with other measures. Itwill be accomplished using the least damag.ing construction techniques and equipmentin order to retain as much of the existingcharacteristics of the channel and riparianhabitat as possible. Construction practicesmay include, but are not limited to, suchthings as seasonal construction, minimumclearing, reshaping spoil, limiting excava-tion to one bank (on alternating sides whereappropriate), and prompt revegetation ofdisturbed areas.

Channel modification may be consideredas an alternative for project purposes forwhich the SCS is currently authorized bylaw and which are in conformance withagency (SCS) policy and regulations, pro-vided the modification is designed to resolvespecific problems and would not cause di-rectly or indfrectly any of the following tooccur

1. Jeopardize the continued existence ofendangered species and threatened speciesdesignated or formally proposed, by the de-struction or modification of habitat or suchspecies which is determined to be criticalunder the Endangered Species Act of 1973or species similarly classified under law ofthe State(s) In which the project is located.

2. Result in restricted access to use ofstreams or stream segments developed spe-cifically for recreation of fish and wildlifeuse by the general public.

3. The intent or purpose is to drain or oth-erwise alter wetland types 3 through 202 orthe result of the modification would be toindirectly alter wetlands types 3 through 20and provisions for appropriate mitigation orcompensation by establishment of similarhabitat values in the project area are notprovided. Wetland types 1 and 2 with Impor-tant fish and wildlife habitat values will betreated In accordance with Item 3 below,and their preservation will be strongly rec-ommended when they are adjacent to types3 through 20 or are needed to maintain abalanced aquatic or semi-aquatic ecosystem.

Also, channel modification will not be con-sidered as an alternative unless it can be ac-

iApplicable only during a 6-month periodImmediately following the date a proposal ispublished in the FimkRAL REGISTER by FWSin compliance with the Endangered SpeciesConservation Act of 1973.

2Wetland types as described in FWS Cir-cular No. 39 or subsequent publications.

complished with little or no direct or Indi.rect adversex effect on:

1. Stream or stream segments now designated or undergoing study under the Wildand Scenic Rivers Act or Officially designated pursuant to other Federal of State(s) legislative actions for their important natural,esthetic, or recreational values,

2. Streams located in or flowing throughor contiguous to established wildernessareas, parks, refuges, or other areas setaside pursuant to Federal of State(s) legisla.tive actions for fish and wildlife esthetic orrecreational values.

3. Important fish and wildlife habitatvalues, including riparian habitat, in theproject impact area, State, or Nation afterproviding for all appropriate mitigation,compensation, or preservation measures.Conservation easements or other compara.ble means will be utilized wherever neces.sary to provide reasonable life of projectprotection for wetlands or riparian areassubject to secondary drainage predicted tooccur as a result of, or be facilitated by,channel modification. (Measurement ofhabitat values will be determined on a case-by-case basis in accordance with habitatevaluation procedures to be promulgated byFWS and developed jointly with SCS.)

iv. cOORDINATION AND INTERACTIONThe FWS and the SCS recognize that tho

application of the above guidelines can mosteffectively be accomplished through cooper-ative effort during all planning phases of awater resource project. The F1 VS and theSCS will work cooperatively with State fishand wildlife agencies to inventory and assessthe fish and wildlife resources and to planalternatives, enhancements, replacement, ornecessary mitigation measures.

The level of effort to be devoted by FWSto each watershed project will be propor-tional to the value of the resources and ex-pected impact on fish and wildlife resources.If FWS determines at any stage of planningthat It cannot, for any reason, participate, Itwill so notify SCS in writing stating reasonsfor discontinued participation. Even thoughFWS discontinues participation in planning,they will eventually, as prescribed by law,become involved with reviewing and com-menting on the watershed plan. In such In-stances, FWS will not oppose the projectplan on the basis of channel modificationsunless it is clearly evident that the plan Isnot in conformance with the provisions ofthese guidelines after consultation with SCSdetermining this to be the case.

The following procedures will be Used inthe planning of water resource projects,The coordination Identified is between thefield levels of FWS and SCS; however, bothagencies recognize that planning will alwaysinvolve State fish and wildlife agencies aswell as the interested public and sponsoringagencies at all stages throughout the plan.ning process.

3Rule of reason must be used in applyingthese guidelines and determining the actualnet effects and their significance at the fieldlevel considerering the value of the resourceand importance of the project objectives.


8278

NOTICES 8279

Coon iNiawoN OF FIzz LEVEL PLumm'o

Process SCS action PWS action

PreapplIation_ __ . _. Potential application under consIderation. Notifies FWS that potential ap- Participate In mecting.plication Is being considered and Issued invitation to meetings.

Assists sponsors in developing Information when appropriate. (Normally Furnlshes available Information and PWSrequires from one to several days.) Request from FWS available fish and viewpoint concerning potentials for and Im-wildlife information and viewpoints concerning potentials for and im- cts of a probable project. If requested, par-pacts of a probable project. ticipates Jointly with SCS and State fish and

wildlife stuies needed and report fndins asmay be required. (Ileld level ktterJ

Application.---- ....- Receives application. Notifies FWS in writing that application has been re- Participates in meetings.ceived and when field examination is to begin. Isues invitation to FWSto participate in all meetings and in study and evaluation ot availabLe in-formation. (Field examination may require a few days to several weeks.).

Initiates field examination and assembles available information, ecordl- Participates in field examinaton. Assemblesnates study and evaluation of available Information and data. Begins en- and furnishes available fish and wildlife in-vironmental assessment. formation and data. Participates In study and

evaluation of available Information and dataand in Identification of problems and studyneeds and potential solutions worthy of fur-ther study.

Identifies problems and needs, potential solutions, and broad alternatives 'Works cooperatively with SCS and State fishworthy of further study. Request FWS to work cooperatively with SCS and wildlife agency in any special studies re-and State fish and wildlife agency in any special studies required In this quIred and in preparing an appropriatestep. report.

Prepares field examination report (incudes pertinent fish and wildlife In- Prw.-Ides inputs (letter report) for the field ex-formation from FWS) and provides copy to FWVS. amination report.

RIequests FWS to participate in developing a plan of study. Prepares the Parcipates with SCS in developing a plan ofstudy plan. study. FWS will advise as to scope and detail

of specific studies needed. capability of FWSto perform studie and Its desire to particl-pate in design of any contracts to secure nec-eaynformaton.

Requests planning authority (submits views of WS with request for plan-

ning authorization).Planning - .. Receives notice of planning authorizatlon. Notifie PWS in writing. Uti- Participates In meetings and preparation of

ates and coordinates Preliminary Investigation (PD and continues envi- Joint FWS.State fish and wildlife agency-SCSronmental assessment. Notifies FWS In writing. (PI may require from fish and wildlife inventory, assesment, baseseveral weeks to 2 years.). line data. and report.

SCS initiates 'preparation of Pi report and update of the study plan. Re- Furnshes additional inputs to problems, needs.quests FWS participation in P1 and update of plan of study. alternatives and impacts as the PI process

progresses and jointly makes recommenda-Uons'for mlUgatin, compensatio and en-hanerenent. Furnlhes inputs for the PIreport and updating of study plan.

Sends PI report to FWS and others Participates with SCS to review the PI reportwith the public.

Detailed planning Coordinates the detailed planning stage and continuation of the environ- Participates with SCS and others in detailedmental assessment. Notifies FVS that detailed planning Is to commence planning of alternatives and the components.and Issues Invitation to participate in detailed planning and In meetings. Works cooperatively with State fish and wild-

life agency and SCS to formulate the alterna-tives and to assess fish and wildlife impacts.Works cooperatively with SCS and State inprepsratlon of recommendations for mitiga-tion. compensation. and enhancement for ini-ti draft plan and. when prepared. an EISParticipates in meetings. Provides detailedreport in accordance with Fish and WildlifeCoordination Act and section 12 of Pub. L.

Prepares initial draft plan and. when required, and EIS. Initiates local Provdz5 review comments on initial draft andfield review and Issues an invitation to FWS to participate in this review. participates in local field review.Provides FWS with initial draft plan and an EIS. if prepared.

Review (formal) ...... Prepares a draft plan and EIS, if required. and circulates for nterazency Provides commends to Interior and wof.s withreview. SCS in an attempt to resolve 1sues. if war-

ranted.SCS prepares final plan and EIS. If required. Forwards plan and EIS Review plan and EIS according to FWS and In-

through system for approval and authorization, ternor intructions.Operations Receives notice of authorization for Installation. Notifies FWS. (Regional ReP-ies pertinent construction plans.

and area offices.) Prepares construction plans and invites FWS to reviewthem.

Notifies FWS of supplement when the channel modification guidelines are Partiipates in formulating supplemental planapplicable. (See page 2.) Prepares supplemental plans when nccesary when the channel modification guidelines areand circulates for local field review, applcable. Same Involvement as in planning

and provides inputs for supplemental plan.Also providca comments on supplementalplan when circulated for local field review.

Forwards supplemental plan for approvaL Provides PWS copy of supple-mental plan.

Maintenance Advises FWS and State fish and wildlife agency of scheduled maintenance Partipates in maintenance Inspections atInspections during the life of the project. FWS discretion. If appropriate makes recom-

mendaUtiors for changes in O&M agreementif necesary to ensure that proper mainte-nance is accomplished.

-All stepa apply to planning for small watershed projects. Appropriate steps will be followed for Pub. L. -534 and Resource Cocervation and Developmentmeasures planning.

Norc 1. SCS notifies FWs when planning is suspended. project action terminated, or other stop nctions are taken.2. The level of effort to be devoted by the FWS to each watershed project will be proportional to the value of the resources and expected Impact an fish and

wildlife resources. If FWS determines at any stage of planning that it cannot, for any reason. participate. I& will so notify SCS In writing stating reasons for discon-tinued participation.

FEDERAL REGISTER. VOL 43, NO. 41-WEDNESDAY, MUCH 1, 1978

NOTICES

V. RESOLUTION OF ISSUES

GeneralIt is recognized that Issues may develop

which cannot be resolved at the field levelWhen Issues arise, It will be the practice ofthe FWS and the SCS to refer such casesand Issues to the next higher respective ad-ministrative level for resolution and ulti-mately, if necessary. to the Secretaries ofAgriculture and Interior. The Secretary of,Agriculture will seek the advice and counselof the Secretary of the Interior in reachinghis decision. Consultation between the twoagencies will, at each level, occur through-out the decision process.Procedure

1. Most.of the problems in applying theguidelines will be identified at the fieldplanning level. When this occurs, the SCSPlanning Staff Leader will consult directlywith the FWS Field Supervisor (EcologicalServices) and attempt to resolve the issue.

2. Should te SCS Planning Staff Leaderand the FWS Area of Field Supervisor beunable to reach agreement, the Issue shouldbe referred and coordlonated as follows:

USDA IN COxSULTATION WriT USDIState Conservationist SCS ... Regional director

and/or areamanager, PWS asappropriate.

Administrator, SCS............. Director, PWS.Assistant Secretary for Con- Assistant Secretary

servation, Research, and for Fish andEducation. Wildlife and Parks.

Secretary of Agriculture .... Secretary of theInterior.

The decision on whether chamiel modifi.cation will be part of a project plan shallrest with the Secretary of Agriculture. Ifdisagreement still exists at the Secretary'slevel, the FWS views and recommendationswill be appended to the project plan.

At all levels in the decision process, thedesires and needs of the local sponsors, envi-ronmental groups, State and Federal agen-cies, and Interested public will be takenfully into account,

Dated: February 21. 1978.LYNN A. GREENWALT,

Director,Fish and Wildlife Service.

Dated: February 22, 1978.R. M. DAVIS,Administrator,

Soil Conservation Service.[FR Doc. 78-5338 Filed 2-28-78; 8:45 am]

[6320-01]CIVIL AERONAUTICS BOARD

(Docket 22387; Order 78-2-112]

INVESTIGATION OF AIR EXPRESS RATES

Order toTermlnalo InvestIgation

Adopted by the Civil AeronauticsBoard at its office In Washington, D.C.on the 23rd day of February 1978.

The Board instituted this investiga-tion by Order 70-7-109. dated July 23,1970, to determine the lawfulness ofthe air express rates and charges andthe revenue divisions, both prospec-tively and retrospectively, of suchrates and charges between- REA Ex-press, Inc. (REA) and the direct aircarriers participating In the air ex-press agreements. Concurrently, theBoard instituted a separate investiga-tion in Docket 22388 Into the need forthe continuation of REA as an exclu-sive express agent of the airlines., Inthe latter Investigation, the Board ul-timately found that REA's exemptionauthority to conduct air express ser-vice should be terminated and autho-rized REA to operate as a domestic airfreight forwarder.s On the other hand,we have never completed the investi-gation of air express rates andcharges, which is the subject of thisorder.

By Order 74-5-23, dated May 6, 1974,the Board determined, first, that itsdecision in Docket 22388 to terminateREA's exemption authority hadmooted issues in the rates investiga-tion as far as those issues concernedprospective lawfulness, and, second,that the record in the rates case wasnot adequate to decide the merits ofREA's contention that a retrospectiveadjustment should be made in itsfavor to the divisions of air expressrevenues.3 Nevertheless, the Board, asa last resort, gave REA an opportunityto meet with the airlines, under Boardauspices, for the purpose of assem-bling factual materials and negotiatingan agreement on the issue of retro-spective divisions.

The parties failed to take advantageof this opportunity. REA continued itsefforts to obtain judicial reversal ofthe Board's findings in both the ser-vice and rates cases, and the airlinesmaintained their position that theBoard did not have the power to over-see retrospective adjustments in theair express revenue divisions., Thus,

,Express Service Investigation, Order 70-7-110.

2 Orders 73-12-36, dated December 7, 1983;75-4-54, dated April 9. 1975; and 75-5-98,dated May 23, 1975; affirmed 524 F. 2d 54(CA. 2d 1975); cert. denied, 426 US. 908.

'On the Issue-of retrospective adjustmentof revenues, the administrative law Judgeheld that the rates and divisions he foundreasonable for the future showed that theairlines, rather than REA, had been under-paid.

' See Order 74-6-117, dated June 26, 1974,denying REA's motion to stay Order 74-5-23, Supra, pending judicial review.

there was no mutually agreeable basison which even to begin negotiations.

The dispute was soon eclipsed by thefinancial collapse of REA. On Febru-ary 18, 1975, REA filed a petition inbankruptcy. It was so adjudged on No-vember 6, 1975.5

Under these circumstances, we seeno further purpose to be served byleaving this matter open.

Accordingly, pursuant to the FederalAviation Act of 1958 as amended,

It is ordered, That: 1. The investiga-tion In Docket 22387 be terminated;and

2. Copies of this order shall beserved upon all parties to Docket22387; the Honorable John J. Qalgay,Bankruptcy Judge; and C, OrvIsSowerwine, Trustee In Bankruptcy.

This order will be published in theFIEDRAL REGISTE11.

By the Civil Aeronautics Board.PHxrus T. KAYLOIt,

Secretarm[FR Doe. 78-5394 Filed 2-28-78; :8:45 am]

[Docket 32118; Order 78-2-120]

PAN AMERICAN WORLD AIRWAYS, INC.

Order of Suspension ond Investlgation Regard-Ing Proposed Increased Excess BaggageCharges

Adopted by the Civil AeronauticsBoard at Its office in Washington, D.C,on the 13th day of February 1978.

By tariff revisions, filed on Decem-ber 23, 1977, and marked to become ef-fective on March 3, 1978, Pan Ameri-can World Airways, Inc. (Pan Ameri-can) proposes to modify excess bag-gage charges in international markets.Over and above the two bags carriedfree, Pan American proposes to limitthe number of pieces of excess bag-gage acceptable at currently effectivecharges to two pieces and to increasethe charges for more than four pieces,For example, the following tableshows a comparison for the New York-London market.

sBankruptcy No. 75-B-0251 et seq., UnitedStates District Court for the Southern DLstrict of New York.

'All Members concurred.'Revisions to AIr Tariffs Corporation.

Agent, CAB No. 55. These tariffs were origi.nally scheduled to become effective on Feb-ruary 6, 1978. Pan American requested andwas granted until January 25 In file ananswer to the complaint and postponed theeffectiveness of its filing until March 3,1978.


8280

Market Excess baggase chares per piece

Present Proposed

New York to London. 2 bags free .Free Pee2 bags at $35 each_ $35 each.Additional pieces at $35 each $105 each.Oversized pleces at $35 to $I05 plus $35 for WslO each

each 10 k. exces of 45k&L

- In effect travellers will be permittedthe current free baggage allowanceplus two pieces of excess baggage, atcurrently applicable charges as at thepresent., Additional pieces of baggagetendered beyond the two excess pieceswill be assessed charges ranging be-

"tween 300 and 400 ercent above thecurrent excess baggage charges.

In support of the proposal, PanAmerican asserts that: it has been ex-periencing continuing problems withthe volume of excess baggage that pas-sengers have presented at check-intime and, because of aircraft volumeand weight restraints, it has unable toboard all the baggage tendered; theproposal is a relatively Inrestrictive re-sponse made essential by some passen-gers abusing baggage privileges by ten-dering twenty, thirty or more pieces,which preclude other passengers orfreight shippers from usiung, PanAmerican's service; the movement oflarge numbers of pieces at rates con-siderably below regular freightcharges gives the tenderer an unfairpreference over other shippers and di-lutes the economic support for theoperaton; for the months of Septem-ber and October and for the first threeweeks of November, 1977, 493 bagswere not loaded on the same flight asthe related passengers departing fromNew York; limiting the applicability ofcurrent excess baggage charges to onlytwo excess pieces will only affect asmall percentage of passengers; the in-creased charges are set to approximatethe level of freight charges if the bag-gage were sent as cargo, assuming 35kilograms per piece; the proposal is de-signed to discourage the tender of in-ordinate amounts of excess baggage,while not imposing a requirement thata passenger ship baggage as freight, arequirement that could create a needfor both the passenger and the carrierto conform to specialized customs andother regulations related 'to interna-tional cargo shipments; the solution oftendering all excess baggage (beyond a

2A third free bag Is permitted If it can becarried aboard and stowed In the passengercompartment o Oversized pieces are chargedat the same rate as excess baggage.

specified number) as freight Is too re-strictive for international travel be-cause customs clearance and otherprocedures are cumbersome and mayinvolve delays; Pan American has notdesigned the rates to put couriers outof business; the costs of extraordinaryamounts of excess baggage are bestmeasured by the revenues lost by thedisplacement of freight traffic; tomaintain simplicluty and efficiency Inpassenger handling procedures., PanAmerican Is proposing that essentiallythe same rules and regulations governbaggpge allowances and assessment ofexcess charges throughout Its system;and the proposal would establishexcess baggge rates at levels that willdiscourage the use of the bagggesystem to carry freight under theguise of personal baggage.

A complaint requesting suspensionpending investigation of this proposalhas been filed by the DEL Corp.(DEL), an air courier service. Addl-tionally, answers In support of thecomplaint have been filed by the Gov-ernment of Guam, the Air CourierConference of America (ACCA), andanother courier service, Purolator SkyCourier, Inc. (Purolator). These com-plaints allege, among other things,that: the proposal Is designed to putcourier companies out of business byraising excess baggage charges to exor-bitant levels; the scheduled carriersare attempting to seize upon the expe-rience of air couriers and eliminatecompetition through economic sanc-tions as evidenced by the magnitude ofthe increases; the direct carriers aretrying to force courier companies outof business because many of these car-riers will soon have unlimited cargorights and want courier business forthemselves; the fact that Western AirLines, Inc. and United Air Lines, Inc.have instituted similar excess baggagerestrictohs indicates this proposal Isin concert with the actions of othersand constitutes an antitrust violation:the residents of Pago Pago and Guamhave no alternative *air service, so thisproposal will inflict particular harmupon their residents and businesses;the carrier cites no cost data in sup-

port of Its proposl; the three-monthstudy data Is not relevant to passengertraffic and related baggage betweenthe U.S. and Guam, and offers no sup-port for the proposal in connectionwith Guam traffic; because passengerfares between Guam and U.S. are sohigh, tourists travelling between thetwo points remain for a substantialperiod, and the longer a person ex-pects to be away from home, the morebaggage must be taken along;, the car-rier should not be permitted to abuseIts monopoly position in the U.S.-Guam market by forcing passengers tobear the proposed massive charges;contrary to expectations, the effect ofsuch charges could be to dampen bothtourism and business travel betweenU.S. and Guam; the proposed levelsare too high because excess baggage isfar less costly to process thanfrelght-no storage, no waybill paper-work, no advertising, no sales commis-sions, no additional handling costs,and a passenger Is paying a fare; thesole Justification for these significantIncreases Is a survey conducted at oneterminal over an eleven-week periodand the results do not support a claimof significant inconvenience to the car-rier or passengers; the Justificationsubmitted Is inadequate in that itlacks data on costs and revenues as re-quired by section 221.165 of theBoard's Economic Regulations;, andthe carriers will be able to engage inrebating and other forms of favoritismby not charging for all excess bag-gage.a

The Board finds that Pan Ameri-can's proposal may be unlawful andshould be investigated. The board fur-ther concludes that It .should be sus- -pended pending Investigation.,

'The Board has also received letters ofprotest from businesses and other courierservices complaining about the magnitudeof Pan American's proposed Increase and Itssevere Impact upon their requirements orbusiness services

'In view of the similarity of the Issues,this Investigation wM be consolidated withthat covering domestic and overseas trar-portaton, Docket 32118. See Order 78-2-0.

FEDERAL REGISTE, VOL 43, NO. 41-WED HESDAY, MARCH 1, 1978

NOTICES 8281

NOTICES

It appears that the proposed in-creases could have a severe impact onpassengers. The carrier makes no at-tempt to support the increases on thebasis of costs of service. Pan Americansupports its proposal by a survey un-dertaken at one terminal for a con-secutive period of eleven weeks. In ouropinion, this survey alone does notsupport or justify such substantial .in-creases at New York or throughoutthe carrier's system. It shows thatabout 493 bags did not acconipany pas-sengers during the period-an averageof only 6.4 bags per day. Admittedlyany baggage not loaded due to capac-ity constraints poses a problem; andwe are aware that In certain marketsvery large amounts of goods are car-ried as excess baggage. Certainly, theBoard can understand that somethingmust be done in situations wheretwenty, thirty, or more pieces ofexcess baggage are tendered to thedetriment of service for other baggageor freight. However, Pan Americanhas not sufficiently justified this pro-posal. The carrier has submitted noevidence that the charges should beapplied systemwide and that the prob-lem cannot be localized; that the aver-age excess bag weight 35 kilograms (77pounds);' or that the proposedcharges are in any way cost-related.Therefore, we conclude that the pro-posal may be unlawful and should notbe permitted to become effective.

The Board believes that a satisfac-tory resolution may be reached with.out a formal hearing. Consequently,Pan American may submit additionalJustification in this docket by FebrU-ary 24, 1978, and a conference will beheld on March 3. 1978, between Boardstaff and Interested persons for thepurpose of seeking a mutually satisfac-tory resolution of this problem.

Accordingly, pursuant to sections102, 204(a), 403, 404, 801, and 1002 ofthe Federal Aviation Act of 1958:

It is ordered, That: 1. An investiga-tion be instituted to determine wheth-er the provisions set forth in AppendixA hereof, and rules, regulations, orpractices affecting such provisions, areor will be unjust, unreasonable, un-Justly discriminatory, unduly prefer-ential, unduly prejudicial, or otherwiseunlawful, and if found to be unlawful,to take appropriate action to preventthe use of such provisions or rules,regulations, or practices;

2. Pending hearing and decision bythe Board, the tariff provisions speci-fied In Appendix A are suspended andtheir use deferred from March 3, 1978,to and Including March 2. 1979, unless

,Data in the Transatlantic, Transpacificand Latin American Service Mail Rates In-vestigation. Docket 26487. indicate an aver-age weight per bag from 26.9 to 30.3 pounds.

otherwise ordered by the Board, andthat no changes be made in themduring the period of suspension exceptby order or special permission of theBoard;

3. Except to the extent granted here,the complaint of DHL Corporation inDocket 31948 is dismissed;

4. The investigation instituted hereis consolidated into Docket 32118;

5. A conference will convene in room1002N, 1875 Connecticut Avenue NW.,Washington, D.C. 20428, on March 3,1978, to explore the issues raised inthis order. Pan American may submitadditional justification in support ofits proposal by February 24, 1978, tobe filed in this Docket and servedupon all parties to Docket 32118. Theconference will be presided over by aBoard staff member who will reportthe results to the Board.

6. This order shall be submitted tothe President' and shall become effec-tive on March 3, 1978; and

7. Copies of this order shall be filedin the applicable tariffs and servedupon Pan American World Airways,Inc., DHL Corp., the Air Courier Con-ference of America, the Governmentof Guam, and Purolator Sky Courier,Inc., which are made parties to Docket32118.

This order will be published in theFEDERAL REGISTER.


PHYLLIS T. KAYLOR,'Secretary.

APPENDIX' A.-Tariff CAB No. 55, issued byAir Tariffs Corp., Agent

On 27th Revised Page 46-A-1. The parenthetical expression "(Not ap-

plicable to PAY' in Rule No. 16(V)(3)(c).2. The Exception to subparagraphs (a), (b)

and (d) of Rule No. 16(V)(3) and the Excep-tion to that Exception.

[FR Doc. 78-5395 Filed 2-28-78; 8:45 am]

[3510-22]

DEPARTMENT OF COMMERCE

National Ocoanlc and AtomosphericAdministration

COD FISHERY

Closure of the Directed Commercial Fishery forCod on Georges Bank and in Southern NewEngland Waters

Notice is hereby given pursuant to50 CFR 651.8(aX2) (See FEDERAL REG-isTER, December 30. 1977, page 65187and FEDERAL REGISTER, January 4,1978, page 778) that the Assistant Ad-

'This order was submitted to the Presi-dent on February 14. 1978.

,All Members concurred.

ministrator for Fisheries has deter-mined that 50% of the quarterly allo-cation of 4,163 metric tons of cod (seeFtDERAL REGISTER, December 30, 1977,page 65187) for the commercial fish-ery for Georges Bank and SouthernNew England has been taken. As ofFebruary 15, 1978, statistics main-tained by the National Marine Fisher-ies Service indicate that 2,800 metrictons of the 4,163 quarterly allocationhave been taken on Georges Bank andin Southern New England. Therefore,the season for taking cod in a directedcommercial fishery for cod on GeorgesBank and in Southern New Englandby persons and vessels subject to thejurisdiction of the United States shallterminate at 0001 hours, March 1,1978. This restriction shall remain Ineffect until 2400 hours, March 31,1978. Between March 1 and March 31,1978. inclusive, no person or vemelshall land cod from Georges Bank andSouthern New England in amountagreater than the following:

(1) For vessels under 50 gross regis-tered tons: 2,000 pounds landed weightof cod per day of fishing or 10 percentby weight of all other fish on boardper trip, whichever is greater.

(2) For vessels of 50-125 gross regis-tered tons: 2,500 pounds landed weightof cod per day of fishing or 10 percentby weight of all other fish on boardper trip, whichever is greater.

(3) For vessels over 125 gross regis-tered tons: 3,000 pounds landed weightof cod per day of fishing or 10 percentby weight of all other fish on boardper trip, whichever is greater.

For vessels making trips of morethan three days, two days will be de-ducted for steaming time. For exam-ple, on a seven day trip, a vessel of 126gross registered tons may land 15,000pounds of cod or 10 percent by weightof all other fish on board, whichever isgreater. (Seven days minus two daysfor steaming equals five days at 3,000pounds per day or 15,000 pounds).

(4) For vessels of any size: usingfixed gear (hooks or gillnets) 10,000pounds per week beginning on Sundayand ending on Saturday.

Fishermen are also reminded thatduring March, April, and May, certainspawning areas are closed to bottomgear. See the notice appearing onpage,

Issued at Washington, D.C. anddated February 24, 1978.

WINFRED H. ME, OHM,Associate Director, National

Marine Fisheries Services.EFR Doc. 78-5420 Filed 2-28-78; 8:45 am]

[3510-22]COD FISHERY

Closure of the Directed Commerical Fishery forCod In the Gulf of Maine

Notice is hereby given pursuant to50 CFR 651.8(a)(2) (See FEDERAL Raa-


& I

8282

NOTICES

isTER, December 30. 1977, page 65187and FmnERAL REGISTER, January 4,1978, page 778) that the Assistant Ad-ministrator for Fisheries has deter-mined that 50% of the quarterly allo-cation of 1,250 metric tons of cod (seeFiDERAL REois=m, December 30, 1977,page 65187) for the commercial fish-ery in the Gulf of Maine has beentaken. As of February 15, 1978, statis-tics naintained by the NationalMarine Fisheries Service indicate that719 metric tons of the 1,250 ton quar-terly allocation have been taken in theGulf of Maine. Therefore, the seasonfor taking cod in a directed commeri-cal fishery for cod in the Gulf ofMaine by persons and vessels subjectto th& jurisdiction of the UnitedStates shall terminate at 0001 hours,March 31, 1978.This restriction shallremain in effect until 24 hours, March31, 1978. Between March 1 and March31, 1978 inclusive, no person or vesselshall land cod from the Gulf of Mainein amounts greater than the following,

(1) For vessels under 50 gross regis-tered tons: 2,000 pounds landed weightof cod per day of fishing or 10 percentby weight of all other fish on boardper trip, whichever is greater.

(2) For vessels of 50-125 gross regis-tered tons: 2,500 pounds landed weightof cod per day of fishing or 10 percentby weight of all other fish on boardper trip, whichever is greater.

(3) For vessels over 125 gross regis-tered tons: 3,060 iounds landed weightof cod per day of fishing or 10 percentby weight of all other Yish on boardper trip, whichever is greater.

For vessels making trips of morethan three days, two days will be de-ducted for steaming time. For exam-ple, on a seven day trip, a vessel of 126gross registered tons may land 15.000pounds of cod or 10 percent by weightof all other fish on board, whichever isgreater. (Seven days minus two daysfor steaming equals five days at 3,000pounds per day or 15,000 pounds).

(4) For vessels of any size: usingfixed gear (hooks or gillnets) 16,000pounds per week beginning on Sundayand ending on Saturday.

Issued at Washington, D.C. anddated February, 24, 1978.

Whnrmm H. MaroHm,Associate Director-,National

Marine Fisheries Service.

EF Doc. 78-5421 Filed 2-28-7'8; 8:45 ama]

[3510-22]

NEW ENGLAND GROUNDFISH SPAWNINGAREAS

Closed to Bottom Gear

Persons and vessels subject to thejurisdiction of the United States are

reminded that during the months ofMarch, April, and May two areas offCape Cod and Georges Bank areclosed to bottom-tending trawls. Thesetwo closed areas are set forth in 50CFR, Part 651 (See FEDmAL REG-zcrof June 10, 1977 at page 29877. contin-ued in effect by the emergency regula-tions promulgated in the F=ERAL REc-isTER on December 30. 1977, at page65186 and repromulgated in the Fzn-Rn REGrsTR on February 13, 1978).The regulation governing these

closed areas is:

Section 651.5 Closed aras (a) It shall beunlawful to use fishing gear other than pe-lagic fishing gear (Le. pure seines or truemdwater trawls using midwater trawl doorsIncapable of being fished on the bottom)during March. April, and May in areasbounded by straight lines connecting thefollowing coordinates in the order listed.

(1) 6955' W.. 42"10' N.; 69'10 W., 41"10 N468"30' W., 41-35' N.; 68'45' W.. 41-50 N..69-00' W., 4150' N.

(2) 67"W W., 42'20' N.; 67'00. W. 41"15' N.;65'40' W., 4"15' N.; 65"40' W. 42'00 N..66-00' W., 42'20 N.

(b) The provisions of paragraph (a) of thissection shall not apply. (1) To vessels thatfish In area (1) with hooks having a gape ofnot less than 1.18 inches (3 cm): and (2) tovessels that fish in either area (1) or (2) orboth with: (1) Pot gear designed to take lob-ster; or (ii) dredges designed to take scal-lops.

(c) It shall be unlawful for any personfishing In the above areas to attach any pro-tective device to pelagic fishing gear or toemploy any means that would, in effect.make it possible to fish for demerml species.

Issued at Washington D.C.. anddated February 24, 1978.

WINFRED EL MFIBOM,.Associate Director, National

Marine Fisheries Service[FR Do=. 78-5422 Flied 2-28-78:8:45 am]

[3510-22]

MARINE MAMMALS PERMJ

Receipt of Application

Notice is hereby given that an Appli-cant has applied in due form for aPermit to take marine mammals as au-thorized by the Marine Mammal Pro-tection Act of 1972 (16 U.S.C. 1361-1407); and the Regulations Governingthe Taking and Importing of MarineMammals (50 CFR Part 216).

1. Applicant: (a) Name-Mr. Michael B.Demttrius. President. Marineworld-AfricaUSA: (b) Address-Marine World Parkway.Redwood City, Calif. 94065.

2. Type of permit:.Public Display.3. Name and number of animals: Atlantic

bottlenosed dolphins (Tursiops Truncalus),10.

4. Type of activity:. To take by capture andmaintain for public display.

5. Location of activity: Copanlo Bay.Rockport, Tex.

6. Period of activity* 2 years.The arrangements and facilities for

transporting and maintaining themarine mammals requested in theabove described application have beenInspected by a licensed veterinarian,who has certified that such arrange-ments and facilities are adequate toprovide for the well-being of themarine mnm al Involved.

Concurrent with the publication ofthis notice in the Fzn,.rA REGIsTRthe Secretary of Commerce is forward-ing copies of this application to theMarine Mammal Commission and theCommittee of Scientific Advisors.

Written data or views, or requestsfor a public hearing on this applica-tion should be submitted to the Assis-tant Administrator for Fisheries, Na-tional Marine Fisheries Service, De-partment of Commerce, Washington,DC. 20235, within 30 days of the pub-licatlon of this notice. Those individ-uals requesting a hearing should setforth the specific reasons why a hear-Ing on this particular applicationwould be appropriate. The holding ofsuch hearing is at the discretion of theAssistant Administrator for Fisheries.

All statements and opinions con-tained In this application are summar-les of those of the Applicant and donot necessarily reflect the views of theNational Marine Fisheries Service.

Documents submitted in connectionwith the above application are avail-able for review in the following offices:

Assistant Administrator for Fisheries. Na-tional Marine Fisheries Service. 3300 Whi-tehaven Street NW, Washington, D.C.;

Regional Director. National Marine Fisher-les Service, Southeast Region, DuvalBuilding. 9450 Gandy Boulevard, SL Pe-tersburg. Fna. 33702; and

Regional Director, National Marine Fisher-Ies Service, Southwest Region. 300 SouthFerry Street. Terminal Island. Calif.90731.

Dated: January 7. 1978.

ROLAND Fmcrr.Acting Assistant Director for

Fisheries Management, Na-tional Marine Fisheries Ser-vice.

(FR Doe. 78-5310 Filed 2-28-48 8:45 aml

[3510-221SURF CLAM FISHING DAY DESIGNATION AND

CHANGE

Public Heauings on Administrative Procedures

AGENCY: National Oceanic and At-mospheric Administration, Commerce.

ACTION: Announcement of Publichearings.

SUMMARY: Three public hearingswill be held by the Northeast Region,NMFS, in conjunction with the Mid-Atlantic Fishery Management Councilto determine the procedure by which


8283

8284

surf clam fishing vessel owners or op-brators may change the fishing daysdesignated by their permits. Thischange could only be accomplishedduring certain times of the year, andmust be requested in writing, underthe present proposal. Alternative re-duction in effort systems, i.e., fishingon one or three days will also be dis-cussed.DATES: The hearings will be heldMarch 7, March 9, and March 10, 1978.See supplementary information below.ADDRESS: The hearings will be heldin Philadelphia, Pa.; Ocean City, Md.;and Red Bank, N.J. See supplemen-tary Information below.FOR FURTHER INFORMATIONCONTACT:

William G. Gordon, Regional Direc-tor, National Marine Fisheries Ser-vice; 14 Elm Street; Gloucester,Mass. 01930, telephone 617-281-3600.

SUPPLEMENTARY INFORMATION:Notice is hereby given that there willbe public hearings to receive testimo-ny concerning the administrative pro-cedure to be used by the NationalMarine Fisheries Service and surfclam boat owners and operators tochange the designated fishing days onvessel permist. A number of commentswere received in response to the finalsurf calm regulations suggesting thatfishermen be given greater flexibilityin choosing their authorized fishingdays when fishing effort was reducedby the Regional Director. The purposeof these hearings will be to receivepublic comment on the NationalMarine Fisheries Service proposedsystem and to investigate alternativesystems for future effort reductions tothree, two, or one fishing days.

The National Marine Fisheries Ser-vice proposes to designate two 30-dayperiods each year during which surfclam vessel owners and operators maymake a written request of the Region-al Director to change the two autho-rized fishing days shown on their per-mits. Within 45 -days of receipt of awritten request a new permit designat-ing the requested days will be issuedby certified mail. Until a new permithas beth received, the fishing daysdesignated in the old permit willremain in force. Upon receipt of thereplacement permit, the vessel owneror operator will be required, withinten days, to return the old vesselpermit by certified mail to the Nation-al Marine Fisheries Service RegionalOffice, 14 Elm Street, Gloucester,Mass. 01930.

Three hearings on this proposal willbe held from 7:30 to 10 p.m. at the fol-lowing locations:

MARCH 7, 1978Sheraton Airport Inn, Airport Exit off 1-95,

Philadelphia, Pa. 19153.

NOTICES

MA~cH 9, 1978Sheraton Fontainebleau Inn, 10100 Coastal

Highway, Ocean City, Md. 21842.

MARCH 10, 1978

Molly Pitcher Inn, Route 35, Red Bank, N.J.07701.

For further information, contact Mr.William G. Gordon, Regional Director,National Marine Fisheries Service, 14Elm Street, Gloucester, Mass. 01930,telephone 617-281-3600.

Signed at Washington, D.C. this24th day of February, 1978.

WINrn1B H. MEIBOHM,Associate Director, National

Marine Fisheries Service.[FR Doe. 78-5423 Filed 2-28-78; 8:45 am]

[3510-04]

National Technical Information Service

GOVERNMENT-OWNED INVENTIONS

Availability for Licensing

The inventions listed below areowned by the U.S. Government andare available for domestic and possiblyforeign licensing in accordance withthe licensing policies of the agency-sponsors.

Copies of the patents cited are avail-able from the Commissioner of Pat-ents and Trademarks, Washington, DC20231, for $.50 each. Requests forcopies of patents must include thepatent number.

Copies of the patent applicationscan be purchases from the NationalTechnical Information Service (NTIS),Springfield, Va. 22161 for -$4 ($8 out-side North American Continent). Re-quests for copies of patent applica-tions must include the PAT/APPLnumber. Claims are deleted frompatent application copies sold to thepublic to avoid premature disclosure inthe event of an interference before thePatent and Trademark Office. Claimsand other technical data will usuallybe made available to serious prospec-tive licensees by the agency whichfiled the case.

Requests for licensing informationon a particular invention should be di-rected to the address cited for theagency-sponsor.

DOUGLAS J. CraNWIor,Patent Program Coordinator,

National Technical Informa-tion Service.

U.S. DEPARTMENT OF AorxcurLTuRm, ResearchAgreements and Patent Branch, Gener-al Services Division/Federal Building,Agricultural Research Service, Hyatts-ville, Md. 20782. _

Patent Application 835,104: Dust ControlDuring Grain Processing Operations; filedSept. 21, 1977.

Patent Application 837,489: Soil Stabiliza-tion Method; filed Sept. 23, 1977.

Patent Application 837,931: BiodegradableStarch-Based Films; filed Sept. 28, 1977.

Patent Application 840,423: Production ofHomodeoxyharringtonine and Other Ce-phalotaxine Esters by Tissue Culture,filed Oct. 7, 1977.

U.S. DEPARTAMEN oF CoamiacE, NationalTechnical Information Service, 5285Port Royal Road, Springfield, Va, 22161,

Patent Application 860,199: Method and Ap-paratus for Implementation of the CMACMapping Algorithm, filed Dec, 15, 1977.

U.S. DEPARTMENT or TAnsronTATOu,Patent Counsel, 400 7th Street SW.,Washington, D.C, 20590.

Patent 4,058,911: Road.Runner AlcoholSafety Interlock system; filed Aug. 18,1976, patented Nov. 22, 1977, Not availableNTIS.

U.S. DEPARTMENT or HTLmi, EDUCATION, ANlDWELFARE, National Institutes of Health,Chief, Patent Branch, Westwood Build.ing, Bethesda, Md. 20014.

Patent Application 802,189: N-Formyl Pep.tides Useful as Leucoattractants; filedMay 31. 1977.

U.S. DEPARTMENT OF THE InTEon, Branchof Patents, 18th and C Streets SW,,Washington, D.C. 20240.

Patent Application 774,354: Sensing Mecha-nism for Mine Roof Bolting Appartitus;filed Mar. 4, 1977.

Patent Application 809,881: Well Perforat-ing Method for Solution Well Miningfiled June 24, 1977.

Patent Application 817,886: Method for Pre-paring Solar Collectors; filed July 21,1977.

Patent Application 817,887: Auger Construc-tion Providing Reduced Noise filed July21, 1977.

Patent Application 818,045: Production ofPure Alumina: filed July 22, 1977.

Patent Application 818,183: Method forEliminating Solution-Level Attack onCathodes During Electrolysls; filed July22, 1977.

Patent Application 819,518: Bloeletrlc Neu-tralization of Acid Waters; filed July 20,1977.

Patent Application 829,129: Method ofLeaching Aluminum from Feldspar Miner-als; filed Aug. 30, 1977.[FR Doc. 78-5448 Filed 2-28-78; 8:45 aml

[3910-01]DEPARTMENT OF DEFENSE

Department of the Air Forco

COMhiUUNITY COLLEGE OF THK AIR FORCE(CCAF) ADVISORY COMMITTEE

Meeting

FEBRUARY 15, 1978.The Community College of the Air

Force Advisory Committee Is sched-uled to meet at 8:30 a.m., March 28,1978, in Room 41 of the CommunityCollege of the Air Force, Building 146,located at Lackland Training Annex,San Antonio, Tex.

The meeting is open to the public.Agenda items include: Transition to

the Commission on Colleges, MasterPlan, Review of Existing Programn,


NOTICES

For further information, contact LtCol. Wade R. Kilbride, at 512-671.3632.

PFRMKIE S. ESTEP,Air Force Federal Register Liaison,

Directorate ofAdministration.EFR Doc. 784287 Filed 2-28-78; 8:45 am]

[3910-01]

USAF SCIENTIFIC ADVISORY BOARD

Changed Meeting

FEBRUARy 22, 1978.The USAF Scientific Advisory Boarc

Meeting of the Strategic Panel scheduled for March 13-14, 1978, at Headquarters, Aerospace Defense Command (ADCOM), Colorado SpringsColo., as published in FsERnA REGISTER, VoL 43, No. 23, 2849, February 21978, has been changed to March 23.24, 1978. All other information is thsame.

For further information contact thtScientific Advisory Board Secretarialat 202-697-4648.

F!RxNus S. ESTEP,Air Force Federal Register Liai-

son Officer, Directorate of Ad--ministration.

(FR Doc. 78-5298 Filed 2-28-78; 8:45 am]

[3910-01 -

USAF SCIENTIFIC ADVISORY BOARD

Meeting

FEBRUARY 23, 1978.The USAF Scientific Advisory Board

Electronic Systems Division AdvisorsGroup, Air Force Systems Command,will hold meetings on March 16, 197Efrom 8:30 a-m. to 5 p.m. and March 17,1978 from 8:30 aam. to 12 p.m., atHanscom Air Force Base, Mass. in theCommand Management Center, Build.ing 1606.

The Group. will receive classifiedbriefings and hold classified discus.sions on selected Air Force CommandControl and Communications Pro-grams.

The meetings concern matters listedin Section 552b(c) of Title 5, UnitedStates Code, specifically subparagraph(1) thereof, and accordingly the meet-ings will be closed to the public.

For further information, contact theScientific Advisory Board Secretariatat 202-697-8404.

FTAXI S. EsTEP,Air Force Federal Register Liai-

son Officer, Directorate of Ad-ministration.

[FR Doe. 78-5297 Filed 2-28-78. 8:45 am]

. [3128-01]DEPARTMENT OF ENERGY

SOUTHEASTERN POWER ADMINISTRATION

Procedure for Public Partidpollon InFormulation of Marketing Policy

AGENCY: Southeastern Power Ad-ministration, Department of Energy.

ACTION: Proposed procedural rule.SUMMARY: The Administrator of theSoutheastern Power Administration(SEPA), which is headquartered at El-berton, Ga., proposes to adopt a proce-dure for public participation in theformulation of marketing policy. Mar-keting policy is defined as a policy formarketing any portion of the electricpower and energy available for sale by

" SEPA which the Administrator deter-mines will significantly affect the

- manner in which SEPA sells or ex-changes electric power and energy orprovides other services. Under the pro-posed procedure notice of a proposed

. policy would be published in the PED-ERAL REGISTER and mailed to affectedcustomers and others who have ex-pressed an interest In the subject. TheAdministrator would have the optionof holding a public information forumto explain the proposed policy. In anyevent, a public comment forum wouldbe held and interested persons wouldhave the opportunity to submit writ-ten comments. SEPA staff wouldevaluate the oral and written com-ments, following which the Adminis-trator would decide on the policy andissue an explanation of the decision.Written comments will be received onthe proposed procedure and an oppor-tunity for oral presentation of viewswill be provided before a final proce-dure Is adopted.DATES: Written comments are due onor before March 31, 1978. An opportu-nity for oral presentation will be pro-vided at Atlanta, Ga., on March 21,1978.

* ADDRESSES: Five copies of writtencomments should be submitted to: Ad-ministrator, Southeastern Power Ad-ministration, Department of Energy,Samuel Elbert Building, Elberton, Ga.30635. The opportunity for oral pre-sentation of views will be at 9:30 am.,March 28, 1978, at the Holiday InnAirport, 1380 Virginia Avenue, Atlan-ta, Ga. 30320.FOR FURTHER INFORMATIONCONTACT,

Mr. Harry F. Wright, SoutheasternPower Administration, Departmentof Energy, Samuel Elbert Building,Elberton, Ga. 30635, 404-283-326L

SUPPLEMENTARY INFORMATION:The Southeastern Power Administra-tion (SEPA) was established by theSecretary of the Interior pursuant tosection 5 of the Flood Control Act of

8285

1944. 16 U.S.C. 825s. to market powerand energy from hydroelectric powerprojects of the Department of theArmy In the 10 Southeastern States ofWest Virginia, Virginia, North Caroli-na, South Carolina, Georgia. Florida,Alabama, Mississippi. Tennessee, andKentucky. Section 302(a) of the De-partment of Energy Organization Act.Pub. L. 95-91, transferred SEPA to theDepartment of Energy. The transfertook place on October 1, 1977.

There are 21 operating projects inthe southeastern area for which-SEPAis the marketing agent. One additionalproject, the Richard B. Russell Damand Lake, is presently under construc-tion and scheduled for first operationIn 1983.

SEPA presently serves some 200wholesale power purchasers, 2 ofwhich are located outside of the 10-State area referred to above. Thenameplate capacity of the power mar-keted by SEPA Is 2,712,375 kilowatts,and the average annual energy isabout 6,900,000.000 kilowatt-hours-

SEPA has grouped the projects forwhich It has marketing responsibilityInto four separate and distinct sys-tems, eachof which is treated sepa-rately with respect to operations, salesarrangements, and rate and repay-ment purposes. These systems are asfollows:

Kerr-Phllpott projects-two projectslocated in the Roanoke River basin inVirginia.

Georgia-Alabama projects-nine pro-Jects in three river basins, of whichseven are located in Georgia and Ala-bama and two are located on the Geor-gia-South Carolina border.

Jim Woodruff project-one projectlocated in the Apalachicola Riverbasin on the Georgia-Florida border.

Cumberland Basin projects-eightprojects In the Cumberland Riverbasin in Tennessee and Kentucky. Aninth project in the basin, the Laurelproject, recently came on line, butlong-term marketing arrangementshave not yet been made.

SEPA does not own any transmis-sion lines, so to date, it has relied onother utility systems for wheelingpower and energy to its preferencecustomers. These wheeling arrange-ments normally are a part of contractsthat also involve sales and exchangearrangements.

In the past SEPA has developed Itspolicies for the allocation of powerand energy and the negotiation ofpower sales, exchange, and wheelingcontracts after Informal consultationwith customers and other interestedpersons and durIng the negotiationprocess. However, in response to re-Quests Irom, existing and potential cus-tomers and in keeping with the letterand the spirit of the Department ofEnergy Organization Act. SEPA nowproposes to adopt a more formal pro-

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, '1978

NOTICES

cedure for public participation in thedevelopment of marketing policies.The proposed procedure is set forthbelow.


WILLIAM S. HEFFELFINGER,Director ofAdministration.

PROPOSED PROCEDURE FOR PUBLIC PAR-TICIPATION IN THE FORMULATION OFMARXETING POLICY

1. Purpose and scope. The purposeof this procedure is to enable individ-uals gnd organizations, public and pri-vate, whose interests will be substan-tively impacted by SoutheasternPower Administration (SEPA) deci-sions or actions, to participate in de-velopment of SEPA marketing poli-cies, as defined in the following sec-tion 2, prior to SEPA's determinationof marketing policies. The procedureshall apply to marketing policy formu-lation, and not implementation.

2. Definitions.-(a) Administrator.The SEPA Administrator, or anyperson acting in such capacity. Theadministrator may designate a SEPAemployee to be responsible for any ofhis tasks named herein, except thosespecified in sections 10 and 11 whichmust be performed by the Administra-tor himself.

(b) Customer. An organization whoseinterests the Administrator deter-mines will be substantially affected bythe proposed marketing policy andwhich currently is purchasing, ex-changing, transferring, assigning, orselling electric power and energy, re-lated services, or transmission capabili-ty to, with, or from SEPA.

(c) Marketing policy. A policy formarketing any portion of the electricpower and energy available for sale bySEPA which the Administrator deter-mines will, over a period of years, sig-nificantly affect or alter the mannerin which SEPA implements its statu-tory authority to sell, exchange, other-wise dispose of, or acquire electricpower and energy, or provide forcedoutage reserves, load factoring service,or transmission service.

(d) Proposed marketing policy. Oneunder consideration for adoption as amarketing policy.

(e) Notice. The method by whichcustomers and the public shall be in-formed of SEPA's intention to developa marketing policy, a proposed mar-keting policy, a revision of a proposedmarketing policy, public ifformationand comment forums, and proceduresfor adopting a marketing policy.Notice shall be by and effective onpublication in the FEDERAL REGISTERand wherever a time period is pro-vided, the date of publication shall de-termine the commencement of thetime period. Notice shall also be givenby mail to customers and to those indi-viduals and organizations that have re-,

quested in writing that they receivewritten notice regarding a proposedmarketing policy or a marketing policysubject. Notice shall include the name,address, and telephone number of theperson to contact if participation orfurther information is sought. Noticesmay be combined.

(f) Public. Any individual who, or or-ganization which, has or could have adirect and significant interest in theSEPA marketing policy.

g. Staff evaluation. A written evalua-tion by the SEPA staff of the writtenand oral comments on a proposed mar-keting policy. It shall include a reviewof the studies used in developing a re-vised proposed marketing policy ormarketing policy, and shall indicaterevisions and reasons for them.

3. Decision to formulate a marketingpolicy and notice of intent. When theadministrator decides a new or revisedwritten marketing policy is needed,SEPA shall give notice of its intent atleast 30 days prior to giving notice ofthe proposed marketing policy pursu-ant to the following section 4. SEPAshall indicate the extent that any ex-isting policy might be revised in devel-oping a new marketing policy. SEPAshall solicit written comments andproposals to use in formulating theproposed marketing policy.

4. Proposed marketing policy. SEPAshall give notice of the proposed mar-keting policy stating in it: The subjectand purpose of and the legal authorityfor the proposed marketing policy andthe major issues it will raise; the textof the proposed marketing policy; thedate, time, and location of any sched-uled public information.and commentforums; and the list of studies used indeveloping the proposed marketingpolicy and locations at which SEPAwould make them available for inspec-tion or copying in accordance with theFreedom of Information Act, 5 U.S.C.552.

5. Optional public informationforum. The Administrator shall deter-mine whether public informationforums will be held to explain the pro-posed marketing policy and the stud-ies used in its formulation, and answerquestions. The Administrator shall de-termine the number, if any, and loca-tions of such forums in accordancewith interest shown in the subject ofthe proposed marketing policy. Noticeto be given in advance of any suchforum shall include the purpose, date,time, place, and procedures for anysuch forum.

The Administrator shall act as or ap-point a forum chairman. Questionsraised at the forum shall be answeredby SEPA representatives at the forum,a subsequent forum at the same loca-tion, or in writing. Forum proceedingsshall be transcribed. All documents in-troduced, and questions and writtenanswers shall be available for inspec-

tion or copying in accordance with theprovisions of the Freedom of Informa-tion Act, 5 U.S.C. 552.

6. Public comment forum. A publiccomment forum shall be held topermit customers and the public tosubmit written comments and orallypresent views and proposals regardingthe proposed marketing policy. Noticeto be given at least 30 days in advanceof the forum shall include the pur-pose date, time, place, and proceduresfor the forum, and a statement ofwhat studies used in developing theproposed marketing policy are avail-able and their locations. The Adminis-trator shall determine the number andlocations of such forums in accordancewith interest shown in the subject ofthe proposed marketing policy, TheAdministrator shall act as or appoint aforum chairman. At the start of aforum the chairman shall briefly ex-plain procedures and rules.

Notwithstanding any additionalrules or procedures it might develop,SEPA shall allow customers and thepublic to make oral statements andcomments, introduce relevant docu-nients, and ask questions of SEPA rep-resentatives at the forum. Persons re-questing to speak shall notify SEPA atleast 3 days before a forum so a list offorum participants can be prepared.The chairman shall establish timelimitations for oral presentations bythese participants to assure that allwho register to speak shall have an op-portunity to do so. Others will be per-mitted to speak if time allows. Thoseunable to speak because of time limita-tions and others who so desire maysubmit written comments. The chair-man may question forum participantsand, at his discretion, permit SEPArepresentatives and other participantsa like privilege.

Questions not answered during aforum shall be answered in writing nolater than the effective date of thenotice of either a revised proposedmarketing policy as provided In thefollowing section 9 or, if a revised pro-posed marketing policy is not devel-oped, the marketing policy as providedIn the following section 10. Forum pro-ceedings shall be transcribed. All docu-ments introduced and written answersto questions shall be available for in-spection and copying in accordancewith the Freedom of Information Act,5 U.S.C. 552.

7. Consultation and commentperiod. Customers and the Public mayfile written comments and questionswith SEPA regarding the proposedmarketing policy until at least 15 daysafter the last public comment forum.

8. Staff evaluation. Following theconsultation and comment period,SEPA shall prepare a staff evaluation.

9. Revised proposed marketingpolicy and review for revised proposedmarketing policy. If appropriate,


8286

NOTICES

SEPA shall develop a revised proposedmarketing policy following the staffevaluation and give notice of the revi-sion and any studies used in develop-ing the revised proposed marketingpolicy not available at the date of theinitial public comment forum. Custom-ers and the public shall be given atleast 30 days from the effective date ofnotice of the revised proposed market-ing policy to submit written commentsto SEPA before the Administratoradopts, modifies and adopts, or rejectsthe revised proposed marketing policy.

10. Final marketing policy issuedFollowing the staff evaluation the Ad-ministrator shall decide whether toadopt, modify and adopt, or reject themarketing policy. The Administratorshall issue an explanation of the deci-sion which shall include the purposeof and the legal authority for the mar-keting policy, the reasons for thepolicy, and the primary objections tothe proposed power marketing policysubmitted by customers or the publicwith brief explanations for rejectingthose objections. SEPA shall givenotice of the marketing policy adopt-ed. It shall become effective either onthe date of notice or at a later datespecified by the Administrator.

11. Emergency marketing policy im-plementation. If the Administrator de-termines prior to initiation or comple-tion of the foregoing procedure that adelay in implementing a marketingpolicy will adversely affect SEPA, itscustomers, or the public, the Adminis-trator may implement the marketingpolicy on an interim basis until thisprocedure is completed. "

FR foc. 78-5313 Filed 2-28-78; 8:45 am]

16740-02]

Federal Energy Regulatory Commission

[Docket No. ER76-659]

ALABAMA POWER CO.

Notice of Compliance Filing

FEBRUARY 23, 1978.Take notice that Alabama Power Co.

on February 9, 1978, tendered forfiling, pursuant to the approved settle-ment agreements in the above-noteddocket, a compliance report showingthe details of refunds made. The Com-pany indicates that the refunds to themunicipalities and cooperatives weremade on January 26, 1978.

Any person desiring to be heard orto protest said filing should file a pro-test with the Federal Energy Regula-tory Commission, 825 North CapitolStreet NE., Washington, D.C. 20426, inaccordance withsections 1.8 and 1.10of the Commission's Rules of Practiceand Procedure (18 CFR 1.8 and 1.10).All such petitions or protests should

be filed on or before March 10, 1978.Protests will be considered by theCommission in determining the appro-priate action to be taken, but will notserve to make protestants parties tothe proceeding. Copies of this filingare on file with the Commission andare available for public Inspection.

KrErH F. PLUMB,Secretary.

FPR Doc. 78-5355 Filed 2-28-78; 8:45 am]

[6740-02]

[Docket No. E-7738]

BOSTON EDISON CO.

Notice of Filing

FEBRUARY 23, 1978.Take notice that Boston Edison Co.

on February 10, 1978, tendered forfiling revised cost of service schedulesand amendments to Boston Edison'sRate S-2 prepared in accordance withopinion Nos. 809 and 809-A of theCommission.

Any person disiring to be heard or toprotest said filing should file a protestwith the Federal Energy RegulatoryCommission, 825 North Capitol StreetNE., Washington, D.C. 20426, in accor-dance with sections 1.8 and 1.10 of theCommission's Rules of Practice andProcedure (18 CFR 1.8 and 1.10). Allsuch petitions or protests should befiled on or before March 10, 1978. Pro-tests will be considered by the Com-mission in determining the appropri-ate action to be taken, but will notserve to make protestants parties tothe proceeding. Copies of this filingare on file with the Commission andare available for public Inspection.

KENmrH P. PLUzMB,- Secretary.

[FR Doc. 78-5356 Filed 2-28-78; 8:45 am]

[674-02][Docket No. ER78-220]

CENTRAL HUDSON GAS & ELECTRIC CORP.

Notice of Role Filing

FEBRUARY 23, 1978.Take notice that on February 17.

1978, Central Hudson Gas & ElectricCorp. (Central Hudson) tendered forfiling an Amendment related to trans-mission service provided from the Ro-seton Generating Plant to NiagaraMohawk Power Corp. (NiagaraMohawk) in accordance with the pro-visions of its Rate Schedule P.E.R.C.No. 42.

Central Hudson indicates that theAmendment increases from 6.5% to8.0% the minimum rate of return to beused by Central Hudson in determin-ng- annual charges for transmissionservice to Niagara Mohawk.

Central Hudson requests waiver ofthe notice requirements set forth in 18CFR 35.11 of the Regulations topermit the Amendment to become ef-fective on January 1. 1978.

Central Hudson states that a copy ofits filing was served on NiagaraMohawk and the State of New YorkPublic Service Commission.

Any person desiring to be heard orto protest said application should filea petition to intervene or protest withthe Federal Energy Regulatory Com-mission, 825 North Capitol Street NE.,Washington. D.C. 20426, in accordancewith the Commission's Rules of Prac-tice a=d Procedure (18 CFR 1.8, 1.10).All such petitions or protests shouldbe filed on or before March 6, 1978.Protests will be considered by theCommission in determining the appro-priate action to be taken, but will notserve to make protestants parties tothe proceeding. Any person wishing tobecome a party must file a petition toIntervene. Copies of this filing are onfile with the Commission and areavailable for public inspection.

KNN'rH P. PLUMB,Secretary.

[FR Doc. 78-5357 Filed 2-28-78; 8.45 am]

[6740-02][Docket No. ER78-2231

DUKE POWER CO.

Notice of Supplement to Electric PowerContract

FEBRUARYr 24. 1978.Take notice that Duke Power Co.

(Duke Power) tendered for filing onFebruary 21, 1978. a supplement tothe Company's Electric Power Con-tract with the town of Huntersville.Duke Power states that this contact ison file with the Commission and hasbeen designated Duke Power Co. RateSchedule FDPC No. 251.

Duke Power further states that theCompany's contract supplement, madeat the request of the customer andwith agreement obtained from the cus-tomer, provides for the following in-creases in contract demand: DeliveryPoint No. 1. from 2,800 KW to 3,200KW.

Duke Power indicates that this sup-plement also includes an estimate ofsales and revenue for twelve monthsimmediately preceding and for thetwelve months immediately succeedingthe effective date. Duke Power pro-poses an effective date. of March 20,1978.

According to Duke Power copies ofthis filing were mailed to the town ofHuntersville and the North CarolinaUtilities Commission.

Any person desiring to be heard orto protest said filing should file a peti-tion to intervene or protest with the


8287

NOTICES

Federal Energy Regulatory Commis-sion, 825 North Capitol Street NE.,Washington, D.C. 20426, in accordancewith sections 1.8 and 1.10 of the Com-mission's Rules of Practice and Proce-dure (18 CFR 1.8, 1.10). All such peti-tions or protest should be filed on orbefore March 13, 1978. Protests will beconsidered by the Commission in de-termining the appropriate action to betaken, but will not serve to make prot-estants parties to the proceeding. Anyperson wishing to become a partymust file a petition to intervene.Copies of this filing are on file withthe Commission and are available forpublic inspection.

KENEU F. PLUB,Secretary.

[FR Doe. 78-5358 Filed 2-28-78; 8:45 am]

[6740-02[Docket No. ER78-222]

- DUKE POWER CO.

Supplement to Electric Power Contract

FEBRUARY 24, 1978.Take notice that Duke Power Co.

(Duke Power) tendered for filing onFebruary 21, 1978, a supplement tothe Company's Electric Power Con-tract with Piedmont Electric Member-ship Corp. Duke Power states that thiscontract is on file with the Commis-sion and has been designated DukePower Co. Rate Schedule FPC No. 138.

Duke Power further states that theCompany's contract supplement, madeat the request of the customer andwith agreement obtained from the cus-tomer, provides for, the following in-creases in designated demand: Deliv-ery Point No. 4, from 2,100 KW to3,000 KW.

Duke Power indicates that this sup-plement also includes an estimate of,sales and revenue for twelve monthsImmediately preceding and for thetwelve months immediately succeedingthe effective date. Duke Power pro-poses an effectiVe date of March 20,1978.

According to Duke Power copies ofthis filing were mailed to Piedmontand the North Carolina Utilities Com-mission.

Any person desiring to be heard orto protest said filing should file a peti-tion to intervene or protest with theFederal Energy Regulatory Commis-sion, 825 North Capitol Street NE.,Washington, D.C. 20426, in accordancewith sections 1.8 and 1.10 of the Com-mission's Rules of Practice and Proce-dure (18 CFR 1.8 1.10). All such peti-tions of protests should be filed on orbefore march 13, 1978. Protests will beconsidered by the Commission in de-termining the appropriate action to betaken, but will not serve to make prot-estants parties to the proceeding. Any

person wishing to become a partymust file a petition to intervene.Copies of this filing are on file withthe Commission and are available forpublic Inspection.

KENNETH F. PLIMB,Secretary.

[FR Doc. 78-5359 Filed 2-28-18; 8:45 am]

[6740-02][Docket No. ER76-658]

IOWA POWER & LIGHT CO.

Notice of Complicnce Filing

F.BRUARY 24, 1978..Take notice that Iowa Power &

Light Co., on February 16, 1978, ten-derid for filing revised tariff sheets incompliance with the Commission'sOrder Approving Settlement Agree-ment, issued October 26, 1977, in theabove-noted docket.

Any person desiring to be heard orto protest said filing should file a pro-test with the Federal Energy Regula-tory Commission, 825 North CapitolStreet NE., Washington, D.C. 20426, inaccordance with sections 1.8 and 1.10of the Commission's Rules of Practiceand Procedure (18 CFR 1.8, 1.10). Allsuch protests should be filed on orbefore March 10, 1978. Protests will beconsidered by the Commission in de-termining the appropriate action to betaken, but will not serve to make theprotestants parties to the proceeding.Copies of this filing are on file withthe Commission and are available forpublic inspection.

KMNETH F. PLUMB,Secretary.

[FR Doe. 78-5360 Filed 2-28-78; 8:45 am]

[6740-021

JERSEY CENTRAL POWER & LIGHT CO.

[Docket No. ER76-813]

Notice of Filing

FEBRUARY 24, 1978.Take notice that Jersey Central

Power & Light Co. (Jersey), by letterdated February 6, 1978, tendered forfiling, pursuant to the Commission'sorder of October 25, 1977, schedulesindicating the amounts Jersey has re-funded to its wholesale customers.Jersey indicates that a copy of theschedules has been sent to the NewJersey Board of Public Utility Com-missioners.

Any person desiring to be heard orto protest said filing should file a pro-test with the Federal Energy Regula-tory Commission, 825 North CapitolStreet, NE., Washington, D.C. 20426,in accordance with sections 1.8 and1.10 of the Commission's rules of prac-tice and procedure (18 CFR 1.8 and

1.10). All such petitions or protestsshould be filed on or before March 10,1978. Protests will be considered bythe Commission In determining theappropriate action to be taken, butwill not serve to make protestants par-ties to the proceeding. Copies of thisfiling are on file with the Commissionand are available for public Inspection.

KCENNET F. Px~tuI,Secretary.

(FR Doc. 78-5361 Filed 2-28-78; 8:45 nam]

[6740-02](Docket No. ER78-206]

MISSISSIPPI POWER A LIGHT CO.

Notice of Proposed Agreement

FEBRUARY 23, 1978.Take notice that Mississippi Power

& Light Co. (MP&L) on February 3,1978 tendered for filing a letter agree-ment dated December 13, 1978, be-tween Tennessee Valley Authority(TVA) and MP&L Indicates that theAgreement provides for MP&L to sellduring the period of December 10,1977 through December 24, 1977, 500mW of capacity with associated energyas scheduled by TVA according toTVA's needs. MP&L states that thisassistance is being provided from thereserves available to MP&L and Is sub-ject to immediate recall In the eventsuch energy is needed by MP&LVs cus-tomers.

Any person desiring to be heard orto protest said filing should file a peti-tion to intervene or protest with theFederal Energy Regulatory Commis-sion, 825 North Capitol Street NE.,Washington, D.C. 20426, in accordancewith sections 1.8 and 1.10 of the Com-mission's rules of practice and proce-dure (18 CFR 1.8 and 1.10). All suchpetitions or protests should be filed onor before March 6, 1978. Protests willbe considered by the Commission Indetermining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Any person wishing to become a partymust file a petition to intervene.Copies of this filing are on file withthe Commission and are available forpublic inspection.

KanNETH F. PLULIB,Secretary.

EM Doc. 78-5362 Fied 2-28-78; 8:45 am]

[6740-02][Docket No. ER76-2111

tMOUJNIT CARMEL PUZLIC UTILITY CO.

No;ilce of Prosiding Judco's Certification ofSottlemont Agroement to the Commlsion

FEBRuARY 23, 1978.Take notice that on February 10,

1978, Presiding Administrative Law


8288

NOTICES

Judge William L- Ellis certified to theCommission pursuant to section 1.18of the rules of practice and procedure,a "Stipulation -and Agreement" ex-ecuted by Mount Carmel Public Util-ity Co. and the village of Allendale,Ill., resolving all issues in dispute inthis proceeding.

Any person desiring to be heard orto protest said filing should file a pro-test with the Federal Energy Regula-tory Commission, 825 North CapitolStreet NE., Washington, D.C. 20426, inaccordance with section 1.8 and 1.10 ofthe Commission's rules of practice andprocedure (18 CFR 1.8, 1.10). All suchpetitions or protests should be filed onor before March 10, 1978. Protests willbe considered by the Commission indetermining the appropriate action tobe taken, but will not serve to makeprotestants parties to the proceeding.Copies of this .filing are on file withthe Commission and are available forpublic inspection.

KrNNET F. PLtJma,Secretary.

[FR Doe. 78-5363 Filed 2-28-78; 8:45 am]

[6740-02]

[Docket No. CP78-1191

NORTHWEST- PIPEUNE CORP.

Amendment to Application

FmRUARY 22, 1978.Take notice that on February 15,

1978, Northwest Pipeline Corp. (Appli-cant) P.O. Box 1526, Salt Lake City,Utah 84110, filed in Docket No. CP78-119 an amendment- to its applicationfiled in the instant docket pursuant tosection 7(c) of the Natural Gas Act soas to provide for the implementationof two agreements dated January 26,1978, between Applicant and WesternTransmission Co. (Western), all asmore fully set forth in the amendmenton file with the Commission and opento public inspection.

It is indicated that on December 14,1977, Applicant filed an application inthe instant docket requesting, interalia, authorization to transport natu-ral- gas for the account of MichiganWisconsin -Pipeline Co. and the ex-change of natural gas with ColoradoInterstate Gas Co. (CIG). Applicantstates that the application was predi-cated in part upon Western agreeingto transport certain volumes of natu-ral gas available to Applicant from theCreston Nose Area of Carbon County.Wyo., and that prior to- and at- thetime 'of the filing by Applicant. Appli-cant and Western has been unable toagree to the terms and conditions ap-plicable to a transportation 'service tobe provided Applicant by Western. Ac-cordingly, Applicant asserts that it

was considering alternate routes totransport the Creston Nose gas to CIGfor exchange by displacement. Onesuch alternate route considered wasfor Applicant to construct a line ap-priximately due North from the Cres-ton Nose Area to the facilities of CIGapproximately 11 miles north of themost northerly well currently dedi-cated to the project in the CrestonNose Area, It Is stated. Applicant Indi-cates that the aforementioned alterna-tive would have parallelled the facili-ties of Western for the entire 11 milesand would have been located approxi-mately 2 miles west of the facilities ofWestern.

The application states that after be-comming aware of- the possible alter-native contemplated by Applicant,Western, on September 6, 1977, filed acomplaint pursuant to § 1.6 'of theCommission's rules of practice andprocedure (18 CFR 1.6) and thereinmade allegations relative to Appli-cant's violating certain provisions ofthe Natural Gas Act and the Commis-sion's Regulations thereunder. The ap-plication further states that Westernconcluded Its complaint by requestingthat the Commission Institute a pro-ceeding in which Applicant would berequired to show cause why the actsalleged by Western were not in viola-tion of the Natural Gas Act and theCommission's regulations theieunder.

It is indicated that the Western'scomplaint was assigned Docket No. CP77-611, and that on September 20,1977, a copy of the complaint wasserved on Applicant. Applicant indi-cates that on October 11, 1977, it filedIts answer to the complaint of West-ern, rebutting the allegation of West-ern and requesting the dismissal of theproceeding in CP 77-611 or an Immedi-ate resolution of the dispute. Appli-cant further indicates that on Novem-ber 9, 1977, it filed Its motion for expe-dited resolution of the proceedings InDocket No. CP77-611. It Is stated thatWestern, on or about November 15,1977, filed Its answer to Applicant'smotion of November 9, 1977, and thaton December 22, 1977, Applicant filedits motion to consolidate proceedingsand request for expedited prehearingconference.

Applicant states that It and Westernhave recently entered into two agree-ments which have resolved the differ-ences between the two parties andwhich render the proceedings inCP77-611 moot. Applicant indicatesthat Western would submit to theCommission a motion requesting thewithdrawal of the complaint filed inDocket No. CP77-611, and that Appli-cant would file Its answer in supportof Western's motion at the appropri-ate time.

It is stated that the two agreementsentered into between Applicant andWestern are as follows:

A. A gas transportation agreementdated January 26, 1978, whereby West-ern has- agreed to transport certainsupplies of natural gas which Appli-cant has available In the Creston NoseArea of Carbon County. Wyo.,through Western's facilities for deliv-ery to CIG and

B. An agreement dated January 26,1978, which provides that Westernwould have the option to purchase theeast-west portion of Trunk A as re-flected in Figure 2 of 4 of ENdubit F tothe original application fileId hereinand on Exhibit B to theL agreementdated January 26, 1978. The agree-ment dated January 26, 1978, also pro-vides that should Applicant be re-quired to install compression on theCreston Nose Gathering System, suchcompression, to the extent possible,would be located at the intersection ofWestern's transmission line and theeast-west portion of Trunk A and pro-vides further that Western would havethe right to purchase such compres-sion within three years from the dateof installation.

Applicant states that pursuant tothe gas transportation agreement, itwould gather the volumes of naturalgas available to It In the Creston NoseArea and deliver such volumes toWestern at a proposed point of intei--connection between the facilities ofWestern and Applicant in CarbonCountyWyo. Applicant further statesthat the volumes of gas so received byWestern from Applicant would becommingled with other volumes inWestern's pipeline and equivalent vol-umes adjusted for heating value wouldbe delivered to CIG for Applicant's ac-count at a point of interconnection be-tween the facilies of Western and CIGin Sweetwater County, Wyo. The vol-umes of natural gas so delivered toCIG by Western for the account ofApplicant would be redelivered to Ap-plicant through the operation of thatcertain gas purchase, transportationand exchange agreement dated April1, 1976. as amended November 28,1977, It is said. It is stated that theageeement dated April 1, 1976, consti-tutes CIG's and Applicant's FERC spe-cial rate schedules X-59 and X-26, re-spectively.

The application states that Westernproposes to charge Applicant for thetransportation service -contemplatedfierein a charge per Mcf equal to thedifferential rate set forth in Western'sgas cost and Western's selling price,which present rate is 12.2 cents perMcf.

Applicant states that its proposal asoriginally filed herein has notchanked, as It was acknowledgedtherein that utilizing the existingtransmission capacity of Western totransport the Creston Nose volumes tothe facilities of CIG was a possibleroute to take,


8289

NOTICES

Any person desiring to be heard orto make any protest with reference tosaid amendment should on or beforeMarch 16, 1978, file with the FederalEnergy Regulatory Commission,Washington, D.C. 20426, a petition toIntervene or a protest in accordancewith the requirements of the Commis-sion's rules of practice and procedure(18 CFR 1.8 or 1.10) and the regula-tions under the Natural Gas Act (18CFR 157.10). All protests filed withthe Commission will be considered byIt In determining the appropriateaction to be taken but will not serve tomake the protestants parties to theproceeding. Any person wishing tobecome a party to a proceeding or toparticipate as a party In any hearingtherein must file a petition to inter-vene in accordance with the Commis-sion's Rules. All persons who haveheretofore filed need not file again.

K-MnETH F. PLUMB,Secretary,

[FR Doc. 78-5378 Piled 2-28-78; 8:45 am]

[6740-02]

[Docket .No.ER78-219]

PENNSYLVANIA-NEW JERSEY-MARYLANDINTERCONNECTION

Notice of Proposed Revised Schedule

FsBRUARY 23, 1978.Take notice that on February 16,

1978, the Pennsylvania-New Jersey-Maryland Interconnection (composedof Public Service Electric and Gas Co.,Philadelphia Electric Co., Pennsylva-nia Power & Light Co., Baltimore Gas& Electric Co., Jersey Central Power& Light Co., Metropolitan Edison Co.,Pennsylvania Electric Co. and Poto-mac Electric Power Co., hereinaftercollectively refereed to as PJlIv) ten-dered for filing a revised schedule 8.03to the Interconnection Agreement be-tween Cleveland Electric- illuminatingCo. (CEI) and PJM dated September30, 1965.

PJM indicates that, for the purposeof conserving energy resources eitherparty to the agreement may arrangeto obtain conservation energy fromthe other. PJM further indicates thatwhen supplied, the charge for conser-vation energy generated on the sup-plying system will be 110 percent ofthe out-of-pocket replacement cost ofgenerating the energy, plus a genera-tion service charge of 3.75 mills perkilowatt hour. PJM states that theschedule also provides for a transmis-sion service charge for deliveries ofconservation energy from systems in-terconnected with CEI or PJM.

PJM .requests that, because of thecurrent uncertainty of fuel suppliesassociated with the coal miners' strike,and the possibility that transactionswill be required imminently under the

proposed schedule, the Commissionwaive its notice requirements andallow the proposed schedule to becomeeffective February 16, 1978. Its statedtermination date is December 31, 1978.

Any person desiring to be heard orto protest said application should filea petition to intervene or protests withthe Federal Energy Regulatory Com-mission, 825 North Capitol Street NE.,Washington, D.C. 20246, in accordancewith sections 1.8 and 1.10 of the Com-mission's rules of practice and proce-dure. All such petitions or protestsshould be filed on or before March 6,1978. Protests will be considered bythe Commission in determining theappropriate action to be taken, butwill not serve to make protestants par-ties to the proceeding. Any personwishing to become a party must file apetition to intervene. Copies of thisapplication are on file with the Com-mission and are available for public in-spection.

KsNN=mF. PLUMB,Secretary.

[FR Doc. 78-5364 Filed 2-28-78; 845 am]

[67'40-02][Docket No. CP78-192]

SOUTHERN NATURAL GAS CO.

Notice of Application

FxRuARY 24, 1978.Take notice that on February 16,

1978, Southern Natural Gas Co. (Ap-plicant), P.O. Box 2563, Birmingham,Ala. 35202, filed in Docket No. CP78-192 an application pursuant to section7(b) of the Natural Gas Act for per-mission and apjroval to abandon itsBayou Mongoulois Gas Lift and Re-de-livery Meter Station, which are locat-ed on its 20-inch south section 28 linetraversing Lake Mongoulois Field, St.Martin Parish, La., all as more fullyset forth in the application on filewith the Commission and open topublic inspection.

Applicant proposes to abandon thesubject facilities which have been usedto account for volumes of gas lift gastransported in the field for TexacoInc. (Texaco) across Bayou Mongou-lois. Applicant indicates that it hasbeen advised by Texaco that Texacohas no further need for the subject fa-cilities. Applicant states that no ser-vice is currently being rendered bymeans of the facilities proposed to beabandoned. Consequently, Applicantrequests permission and approval toabandon the subject facilities.

Any person desiring to be heard orto make any protest with reference tosaid application should on or befoireMarch 20, 1978, file with the FederalEnergy Regulatory Commission,Washington, D.C. 20426, a petition tointervene or a protest in accordance

with the requirements of the Commis-sion's Rules of Practice and Procedure(18 CFR 1.8 or 1.10) and the Regula-tions under the Natural Gas Act (18CFR 157.10). All protest filed with theCommission will be considered by It Indetermining the appropriate action tobe taken but will not serve to makethe protestants parties to the proceed-ing. Any person wishing to become aparty to a proceeding or to participateas a party in any hearing therein mustfile a petition to intervene in accor-dance with the Commission's Rules.

Take further notice that, pursuantto the authority contained in and sub-ject to the jurisdication conferredupon the Federal Energy RegulatoryCommission by sections 7 and 15 ofthe Natural Gas Act and the Commis-sion's Rules of Practice and Procedure,a hearing will be held without furthernotice before the Commission on thisapplication If no petition to interveneIs filed within the time requiredherein, if the Commission on its ownreview of the matter finds that per-mission and approval for the proposedabandonment are required by thepublic convenience and necessity. If apetition for leave to intervene Istimely filed, or If the Commission onIts own motion believes that a formalhearing is required, further notice ofsuch hearing will be duly given.

Under the procedure herein pro-vided for, unless otherwise advised, itwill be unnecessary for Applicant toappear or be represented at the hear-ing.

KI ENNr F. PLUMB,secretary.

[FR Doc. 78-5365 Filed 2-28-78; 8:45 am]

[6740-02]

[Docket No. ER78-2241

TUCSON GAS & ELECTRIC CO.

Notice of Filing of Power and Energy SalesAgreement

FiBnUAnY 24, 1978Take notice that Tucson Gas & Elec-

tric Co. (TGE) on February 14, 1978tendered for filing a Power andEnergy Sales Agreement (the Agree-ment) dated February 3, 1978 betweenTGE and Platte River Power Author-ity (Platte River). Copies of the filingwere served upon Platte River on Feb-ruary 14, 1978, according to TGE.

TGE indicates that the purpose ofthis Agreement is to establish termsand conditions between the parties rel-ative to the delivery by TGE of firmcapacity and associated energy asscheduled by Platte River.

Any person desiring to be heard orto make application with reference tosaid Agreement should file a petitionto intervene or protest with the Feder-al Energy Regulatory Commission, 825North Capitol Street NE., Washing-


8290

NOTICES

ton, D.C. 20426, in accordance withsections 1.8 and 1.10 of the Commis-sion's Rules of Practice and Procedure(18 CFR 1.8, 1.10). All such petitionsor protests should be filed on or beforeMarch 10, 1978. Protests will be con-sidered by the Commission in deter-mining the appropriate action to betaken, but will not sdrve to make theprotestants parties to the proceeding.Any person wishing to become a partymust file a petition to intervene.Copies of this -Agreement are on filewith the Commission and are availablefor public inspection.

KmNr F. PLULM,Secretary.

EFR Doc. 78-5366 Filed 2-28-78; 8:45. am)

[6740-021[Docket No. CP78-1911

TRUNKUINE GAS CO.

Apprication

FEBRUARY 22. 1978.Take notice that on February 15.

1978, Trunkline Gas Co. (Applicant,P.O. Box 1642 Houston, Tex. 77001,fled in Docket No. CP78-191 an appli-cation pursuant to section 7(c) of theNatural Gas Act for a certificate ofpublic convenience and necessit- au-thorizing the construction and oper-ation of approximately 8.4 miles of 24-inch pipeline loop in Jefferson Davisand Calcasieu Parishes, LI., and the

. operation of approximately 23.8 milesof 30-inch pipeline "loop to be con-structed in Calcasieu, Jefferson Davis,and Beauregard Parishes, La., pursu-ant to authorization granted in DocketNo. CP74-140, all as more fully setforth in the application on file withthe Commission and open to public In-spection.

Applicant requests authorization toconstruct and operate approximately8.4 miles of 24-inch pipeline loop on Itsexisting Lakeside lateral in JeffersonDavis and Calcasieu Parishes. La-, atan estimated total cost of $2,993,000,which cost Applicant would financefrom funds on hand, and from short-term bank borrowings. Applicant alsorequests authorization to operate as asupply line a portion of the facilitiespreviously authorized for constructionin CP74-140 in connection with Trunk-line's LNG project at Lake Charles,La., namely approximately 23.4 milesof 30-inch pipeline loop from Appli-cants mainline facilities at Longville,La. (Station 48), to a point of connec-tion with the 8.4 miles of 24-inch pipe-line above described. Applicant indi-cates that it plans to construct thisportion of such 30-inch loop duringthe summer of 1978 in conjunctionwith the 24-inch loop, so as to elimi-nate a bottleneck in Applicant's exist-ng supply system from offshore and

Southern Louisiana. The two contlg- [6740-021uous sections of pipeline would com- EXplete the looping of Appliant's facili-ties from Lakeside to Longvlle, La.. itis stated.

The application states that only the Notic of Prabove described portion of the 30-Inchpipeline authorized in Docket No. Take nolCP74-140 Is presently needed, and the 1978, Unioremainder of the certificated pipeline, dered for Iconsisting of 22 miles of 30-Inch line to and revisedthe LNG plant Itself, would be con- Interchangstructed at the appropriate time to be 1968 betwein service for the LNG project of Gas & Elecwhich It Is a part. It Is indicated that Union inthe proposed facilities are necessary to adds systeensure that the additional supplies the classIfiavailable to Applicant and others availablewould be available for the 1978-79 Agreementwinter heating season. provides fc

Any person desiring to be heard or under saidto make any protest with reference to Union prsaid application should on or before days from iAny petsMarch 17, 1978, file with the Federal to protestEnergy Regulatory Commission. tion to intWashington, D.C. 20426, a petition to Federal Etintervene or a. protest in accordance slon. 825with the requirements of the Conmis- Washingtosion's Rules of Practice and Procedure with the C(18 CFR 1.8 or 1.10) and the Regula- tice and Prtions under the Natural Gas Act (18 All such pCFR 157.10). All protests filed with be filed onthe. Comm ion will be considered by Protestsit in determining the appropriate CommlsIoaction to be taken but will not serve to priate actRmake the Protestants parties to the serve to nproceeding. Any person wishing to the procee,become a party to a proceeding or to become a pparticipate as a party in any hearing intervene.therein must file a petition to inter- file withvene in accordance with the Commis. available fcsion's Rules.

Take further notice that, pursuantto the authority- contained In and sub- UPR DOC.ject to the jurisdiction conferred uponthe Federal Energy Regulatory Com-mission by sections 7 and 15 of the [6740-02]Natural Gas Act and the Commison'sRules of Practice and Procedure, a -hearing will be held without further VIGILAHTInotice before the Commission on this Applkapplication If no petition to interveneis 'filed, within the time requiredherein, if the Commission on Its own Public ncreview of the matter finds that a grant applicationof the certificate is required by the filed on Sepublic convenience and necessity. If a Federal Pi15etition for leave to intervezie is 825r) by Itimely filed, or If the Commission on ie, Inc. (its own motion believes that a formal to: Mr. Wihearing is required, further notice of Manager,such hearing will be duly given. lye, Inc,

Under the procedure herein pro- Dillon. Movided for, unless otherwise advised, It Broadwatwill be unnecessary for Applicant to The proposappear or be represented at the hear- on the ML-

ing.County,ing. Toston an

KmxrM F. PLUa. River is aSecretary. United Sta

Appican[FR Doc. 78539 Filed 2-28-78; 8:45 am] droelectric

locket No. ER78-221]

UNION ELECTRIC CO.

i'posed Revised Sfryke Sch.due

FERUARY 24. 1978.tLice that on February 21,n Electric Co. (Union) ten-fling a Second AmendmentSchedules II and IV to the

e Agreement dated July 30,en Union and Iowa-Illinoistric Co.icates that said agreementn Participation Power tocatons of power and energyunder the Interchangebetween the parties and

ir revisions in certain ratesInterchange Agreement.oposes an effective date 30the date of filing.on desiring to be heard orsaid filing should file a peti-ervene or protest with thenergy' Regulatory Comms-North Capitol Street NE.,n, D.C 20426, in accordanceommission's Rules of Prac-rocedure (18 CFR 1.8. L10).etlions or protests shouldor before March 13. 1978.

rill be considered by then In determining the appro-n to be taken, but. will not

take protestants parties toding. Any person wishing toparty must file a petition toCopies of this filing are onthe Commission and arer public inspection.

KMsNm F. PLUMB,Seta-y.

8-5367 Fled 2-28-78:8:45 am]

[Project o. 28171

ELECTRIC COOPlATIVE, IN.

!ston for Vreumbmry Permit

FEBRUARY 24, 1978.itice Is hereby'klven that anfor preliminary permit was

ptember 22, 1977. under theower Act (16 U.SC. 791a-Pgilante Electric Cooperat-applicant) (correspondenceIldr L. Anderson, Generalligilante Electric Cooperat-225 East Bannack Street,nt. 59725), for the proposedr-Mlssouri project No. 2817.sed project would be locatedsourl River. in Broadwater,font., near the cities ofd Townsend. The Missourinavigable waterway of thetes.L proposes to develop a by--facility In conjunction with


8291

NOTICES

an existing 378-foot-long concrete damwhich is presently used for irrigationpurposes. The proposed project wouldutilize the existing conservation pool.Although subject to modification, theproposed project would also consist of:(1) A powerhouse to be located nearthe dam spillway and adjacent to theexisting irrigation canal outlet at theright abutment of the dam; (2) anintake structure;' (3) two fixed-blade,horizontal bulb-type turbines to be op-erated at a normal head of 33 fdet; (4)two 5,500 kW generators; (5) a substa-tion and switchyard to be located adja-cent to the new powerhouse; and (6) a2-mile-long transmission line from theproposed facility to applicant's exist-ing transmission line system. Appli-cant also proposes to install radialgates to replace the planks now in useat the dam.

The power developed by the pro-posed project would be utilized by ap-plicant to assist in meeting its presentand future load requirements.

A preliminary permit does not au-thorize the construction, of a project.A permit, if issued, gives the permitteeduring the period of the permit theright of priority of application for li-cense while the permittee undertakesthe necessary studies and examina-tions to determine the engineering andeconomic, feasibility of the proposedproject, the market for the power, andall other necessary information for in-clusion in an application for a license.

Any person desiring to be heard orto make protest with reference to saidapplication should, on or before May9, 1978, file with the Federal EnergyRegulatory Commission, 825 NorthCapitol Street NE., Washington, D.C.20426, a petition to intervene or a pro-test in accordance with the require-ments of the Commission's rules ofpractice and procedure (18 CPR 1.8 or1.10). All protests filed with the Com-mission will be considered by it in de-termining the appropriate action to betaken, but will not serve to make theprotestants parties to a proceeding.Any person wishing to become a partyto a proceeding or to participate as aparty in any hearing therein must filea petition to intervene in accordancewith the Commission's rules.

The application is on file with theCommission and is available for in-spection.

The public should take furthernotice that on October 1, 1977, pursu-ant to the provisions of the Depart-ment of Energy Organization Act(DOE Act), Pub. L. 95-91, 91 Stat. 565(August 4, 1977), and Executive OrderNo. 12009, 42 FR 46267 (September 15,1977), the Federal Power Commissionceased t? exist and its functions andregulatory responsibilities were tranS-ferred to the Secretary of Energy andthe Federal Energy Regulatory Com-mission (FERC) which, as an indepen-

dent commission within the Depart-ment of Energy, was activated on Oc-tober 1, 1977.

The "savings provisions" of section705(b) of the DOE Act provide thatproceedings pending before the Feder-al Power Commission on the date theDOE Act takes effect shall not be af-fected, and that orders shall be issuedin such proceedings as if the DOE Acthad not been enacted. All such pro-ceedings shall be continued, and fur-ther actions shall be taken by the ap-propriate component of DOE now re-sponsible for the functions under theDOE Act and regulations promulgatedthereunder. The functions which arethe subject of these proceedings werespecifically transferred to the FERCby section 402(a)(1) of the DOE Act.

The joint regulation adopted on Oc-tober 1, 1977, by the Secretary ofEnergy and the FERC entitled"Transfer of Proceedings to the Secre-tary of Energy and the FERC" 10CFR -, Provided, That this proceed-ing would be continued before theFERC. The FERC takes action in thisproceeding in accordance with theabove mentioned authorities.

KEwNEH F. PLUMh,Secretary.

[FR Doc. 78-5368 Fled 2-28-78; 8:45 am]

[6560.01]ENVIRONMENTAL PROTECTION

AGENCY

[FRL-861-8; OPP-00068J

FEDERAL INSECTICIDE, FUNGICIDE, AND RO-DENTICIDE ACT SCIENTIFIC ADVISORYPANEL

Meeting

AGENCY: Office of Pesticide Pro-grams, Environmental ProtectionAgency (EPA)ACTION: Notice of open meetingSUMMARY: There will be a two-daymeeting of the Federal Insecticide,Fungicide, and Rodenticide Act(FIFRA) Scientific Advisory Panelfrom 9:30 a.m. to 4:30 p.m. daily onFriday, March 17 and Saturday,March 18, 1978. The meeting will beheld in the Department of PathologyConference Room, School of Medicine,University of California, San Francis-co, Calif., and will be open to thepublic.FOR FURTHER INFORMATIONCONTACT:-

Dr. H. Wade Fowler, Jr., ExecutiveSecretary, FIFRA Scientific Adviso-ry Panel, Office of Pesticide Pro-grams (WH-566), Room 803, CrystalMall, Building 2, 1921 JeffersonDavis Highway, Arlington, Va., tele-phone 703-557-7560.

SUPPLEMENTARY INFORMATION:In accordance with section 25(d) of the

amended FIFRA, the Scientific Advi-sory Panel will comment on theimpact on health and the environmentof regulatory actions under sections6(b) and 25 (a) prior to implementa-tion; The purpose of this meeting is todiscuss the following topics:

1. Review of Proposed Rulemakingon Optional Procedures for Classifica-tion of Pesticide Uses by Regulations(Phase II);

2. Review of epidemiological data re-quired for assessment of hazards tofarmworkers re-entering fields treatedwith pesticides.

Because of limited seating capacity,any member of the public wishing toattend or submit a paper should con-tact Dr. H. Wade Fowler, Jr., at theaddress or phone listed above. Inter-ested persons are permitted to filewritten statements before or after themeeting, and may upon advance noticeto the Executive Secretary, presentoral statements to the extent thattime permits. Written or oral state-ments will be taken into considerationby the Panel in formulating commentsor in deciding to waive comments. Per-sons desirous of making oral state-ments must notify the Executive Sec-retary and submit 10 copies of a sum-mary no later than March 14, 1978.

Individuals who wish to file writtenstatements are advised to submit 10copies of statements to the ExecutiveSecretary in a timely manner toensure appropriate consideration bythe Panel.

Dated: February 23, 1978.EDWIN L. JOHsON,

Deputy Assistant Administratorfor Pticide Programs.

[FR Dec. 78-5424 Filed 2-28-78: 8:45 am]

[6560-01][FRL 861-5; OPP-50358]

MONSANTO CO.Issuance of Experimental Use Permll

The Environmental ProtectionAgency (EPA) has issued an experi-mental use permit to the following ap-plicant. Such permit is in accordancewith, and subject to, the provisions of40 CFR Part 172, which defines EPAprocedures with respect to the use ofpesticides for experimental purposes.No. 524-EVP-24. Monsanto Co., St. Louis,

Mo. 63166. This experimental use permitallows the use of 2,060 pounds of the her-bicide Glyphosate on cotton and soybeamnto evaluate control of various weeds. Atotal of 2,060 acres Is involved: the pro-gram is authorized only in the States ofAlabama, Arizona, Arkansas, California,Delaware, Georgia, Illinois, Indiana. Iowa.Kansas. Kentucky, Louisiana, MarylandMisskisppi, Missouri, Nebraska, NewMexico, North Carolina, Ohio, Oklahoma,South Carolina, Tennessee, Texas, andVirginia. The experimental use permit is


8292

NOTICES

effective from January 17. 1978 to Janu-ary 17. 1979. Temporary tolerances for re-sidues of the active ingredient in or oncotton forage, cottonseed, soybean grain.forage, and hay, liver. kidney of cattle.

-goats. hogs horses, poultry, and sheep.'and a food additive regulation for residues,of the active ingredient in soybean hullshave been established-

Interested parties wishing to reviewthe experimental use permit -are re-ferred to Room E-315, RegistrationDivision. (WH-567), Office of PesticidePrograms, EPA, 401 BT Street SW.,Washington., D.C. 20460. It is suggest-ed- that such interested persons call202-755-4851 before visiting the EPAHeadquarters Office, so that the ap-propriate permit may be made conve-niently available for review purposes.This file will be available for inspec-tion from 8:30 am. to 4 p.m. Mondaythrough Friday.(Section 5 of the Federal Insecticide. Fungi-cide, and Rodenticide Act (FIFRA). asamended (86 Stat. 973; 8V Stat. 751:7 U.S.C.136(a) et seq.)j

Dkted: February 22, 1978.

DOUGLAS D. CAuPT,Acting Director,

Registration Division.(FR Doc. 78-5280 Filed 2-28-78: 8:45 am]

[6560-011[FRL 861-6; OPP-301421

PESTICIDE PROGRAMS

Receipt of Applications To Register PesticideProducts Containing New Active Ingredients

Applications have been submitted tothe Environmental Protection Agency(EPA) to register pesticide productscontaining an active ingredient whichhas not been included in any previous-ly registered pesticide products. Appli-,cations were made pursuant to theprovisions of the Federal Insecticide.Fungacide, and Rodenticide Act(PIFRA), as amended (86 Stat. 973. 89Stat. 751; 7 U.S.C. 136(a) et seq.), andthe regulations thereunder (40 CFR162.6(b)(6)). Notice of receipt of theseapplications does not indicate a deci-sion by the Agency on the applica-tions.. Interested persons are invited tosubmit written comments on these ap-plications to the Federal Register Sec-tion, Technical Services Division (WH-569), Office of Pesticide Programs, En-vironmental Protection Agency, Room401. East Tower. 401 M Street SW.,Washington D.C. 20460. Three copiesof the comments should be submittedto facilitate the work of the Agencyand others interested in inspecting,them. The comments must be receivedon or before March 31, 1978 andshould bear a notation indicating theEPA File Symbol number of the appli-cation to which the comments pertain.

Comments received within the speci-fied time period will be consideredbefore a final decision is made with re-spect to the pending application. Com-ments received after the specified timeperiod will be considered only to theextent possible without delaying pro-cessing of the application. Specificquestions Concerning these applica-tions and the data submitted shouldbe directed to the Product Manager(PM) 17. Registration Division (WH-567), Office of Pesticide Programs, atthe above address or by telephone atarea code 202-426-9425. The labels fur-nished by FMC Corp., as well as writ-ten comments filed pursuant to thisnotice, will be available for public In,spection in the office of the FederalRegister Section from 8:30 aam. to 4p.m. Monday through Friday.

Notice of approval or denial of theapplications to register pesticide prod-ucts listed will be announced in theFEDERAL REGIsm. Except for suchmaterial protected by Section 10 ofFIFRA, the test data and other Infor-mation submitted in support of regis-tration aswell as other scientific Infor-mation deemed relevant to the regis-tration decision shall be made avail-able after approval pursuant to section3(c)(2) of FIFRA. The procedures forrequesting such data will be given Inthe FEDERAL REGISTER if an applicationis approved.

Dated: February 21. 1978.

DOUGLAS D. CAMpy,ActingDirector,

Registration Division.IM Doc. 78-5281 Filed 2-28-78 8:45 am]

APrLIcATioNs REcErvEDEPA File Symbol 279-GNRO. FMC Corp,

Agricultural Chemical Division. 2000Market Street, Philadelphia. Pa. 19103.Pounce Technical Active Ingredient: Per-methrin. (3-phcnaryphcnyt) methyl (-h) cis- trans - 3 - (2,Z-dichloroethenyl)-ZZ-di-methyl-cyclopropanecarboxylate 92.0 per-cent. Application proposes that this prod-uct be used as an insecticide for formulat-ing use only.

EPA File Symbol 279-GNRU. FMC Corp..Agricultural Chemical Division. 2000Market Street. Philadelphia. Pa. 19103.Pounce 3.2 EC. Active Ingredient: Per-methrin. (3-phcnorypheny ) methyl (±) ci3- trans - 3 - (22-dfchloroellwnyD-2.-df-methyl-cyclopropanecarbosrjlcle 38.4 per-cent. Application propozes that this prod-uct be classified for restricted use as an In-secticide for aerial or ground applicationto cotton against bollworm, tobacco bud-worm, boll weevil, pink bollworm. cottonleaf perforator and lygus.

[6560-01][FRL 861-7: OPP-30141]

PESTICIDE PROGRAMS

Receipt of Applications To Register PesticideProducts, Containing New Adive Ingredients

Applicationss have been submittedto the Environmental Protection

Agency (EPA) to register pesticideproducts containing active ingredientswhich have not been included in anypreviously registered pesticide prod-ucts. Applications were made pursuantto the provisions of the Federal Insec-ticide, Fungicide, and Rodenticide Act(FIFRA), ns amended (86 Stat 973, 89Stat. 751; 7 U.S.C. 136(a) et seq.). andthe regulations thereunder (40 CFR162.6(b(6)). Notice of receipt of theseapplications does not indicate a deci-sion by the Agency on the applica-tions.

Interested persons are invited tosubmit written comments on any ap-plications referred to in this notice tothe Federal Register Section, Techni-cal Services Division (WH-569). Officeof Pesticide Programs, EPA, Room401, East Tower. 401 M,? Street SW,Washington, D.C. 20460. Three copiesof the comments should be submittedto facilitate the work of the Agencyand of others interested In inspectingthem. The comments must be receivedon or before March 31, 1978 andshould bear a notation indicating theEPA File Symbol number of the appli-cation to which the comments pertain.Comments received within the speci-fied tilne period will be consideredbefore a final decision is made with re-spect to the pending -applicationsComments received after the specifiedtime period will be considered only tothe extent possible without delayingprocessing of the application.

Specific questions concerning theseapplications and the data submittedshould be directed to the ProductManagers (PI), Registration Division(WH-567), Office of Pesticide Pro-grams, at the above address or appro-priate phone number listed below-. Thelabels furnished by each applicant aswell as all written comments filed pur-suant to this notice, will be availablefor public inspection in the office ofthe Federal Register Section from 8:30a.m. to 4 p. Monday through Friday.

Notice of approval or denial of theapplications to register pesticide prod-ucts listed will be announced in theFPnRAT- REGixs. Except for suchmaterial protected by Section 10 ofFIFRA. the test data and other infor-mation submitted in support of regis-tration as well as other scientific infor-mation deemed relevant to the regis-tration decision shall be made avail-able after approval pursuant to section3(c)(2) of the Freedom of InformationAct. The procedures for requestingsuch data wil be given, in the FEaRALREGism if an application Is approved.

Dated: February 21. 1978.DouGLAs D. C u:zT.

- ActingDirectorRegfstrationDiviion

Ai-rmcAxo.,s R-rcnvmIEPA File Symbol 35980-R. Atlantic and Pa-

cific Research Inc- P.o. Box 14366. North

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MAR01 1, 197&

8293

8294

Palm Beach, Fla. 33408. SM-3. Active In-gredients: Cytolcinin-like activity equiv-alent to 100 ppm Kinetin .0001 percent.Application proposes that this product beclassified for general use as a growth regu-lator on oranges. PM25 202-426-2632.

EPA File Symbol 201-GTI. Shell ChemicalCo., Suite 200, 1025 Connecticut AvenueNW., Washington, D.C. 20036. ACCELActive Ingredients: N(phenylmethyl)-9-(te-trahydro-2H-pvran-2-yl)-9H-Purin-6-amnine1.3 percent. Application proposes that thisproduct be classified for general use onroses, carnations, and mums in green-houses. PM25 202-426-2632.[FR Doe. 78-5282 Filed 2-28-78; 8:45 am]

[65 -01][FRL 861-4; OPP-42004C]

STATE OJf SOUTH CAROLINA

Approval of State Plan for Certification ofCommercial and Private Applicators of Re-stricted Une Pestiddes

Section 4(a)(2) of the Federal Insec-ticide, Fungicide, and Rodenticide Act(FIFRA), as amended (86 Stat. 973; 7U.S.C. 136 et seq.), and the implement-ing regulations of 40 CFR Part 171, re-quire each State desiring to certify ap-plicators to submit a plan to EPA forits certification program. Any Statecertification program under this sec-tion shall be maintained in accordancewith the State Plan approved underthis section.

On October 28, 1975, notice was pub-lished in the FEDERAL REGISTER (40-FR50122) of the intent of the RegionalAdministrator, EPA, Region IV, to ap-prove, on a contingent basis, theSouth Carolina State Plan for Certifi-cation of Commercial and Private Ap-plicators of Restricted Use Pesticides.Contingent approval was requested bythe State of South Carolina, of theSouth Carolina Pesticide Control Actenacted June 4, 1975. Complete copiesof the South Carolina State Plan weremade available for public inspection atthe Agency's Region IV Office in At-lanta, at the Office of the Division ofRegulatory and Public Service Pro-grams, Clemson University, Clemson,South Carolina, and at the Agency'sTechnical Services Division, FederalRegister Section, Office of PesticidePrograms, EPA Headquarters, Wash-ington, D.C.

Contingent approval of the Plan was/ granted pending promulgation of final

regulations for the enforcement of theSouth Carolina Act. Notice of contin-gent approval was published in theFEDERAL REGISTER on January 6, 1976(41 FR 1125).

Final regulations for the enforce-ment of the South Carolina PesticideControl Act were published-in theSouth Carolina State Register on De-cember 12, 1977, and became effectiveupon publication. Therefore, it hasbeen determined that the South Caro-

NOTICES'

lina State Plan will satisfy the require-ments of Section 4(a)(2) of the amend-ed FIFRA and 40 CFR Part 171.

The South Carolina Plan will remainavailable for public inspection at theDivision of Regulatory and Public Ser-vice Programs, Clemson University,Clemson, S.C. 29631.

EncTzvE DATE

Pursuant to Section 4(d) of the Ad-ministrative Procedure Act, 5 U.S.C.553(d), the Agency finds that there isgood cause for providing that the ap-proval granted herein to the SouthCarolina Plan shall be effective uponsignature of this notice.

Accordingly, this approval shallbecome effective immediately.

Dated: February 6, 1978.'JoEnu A. LITTLE,

Deputy Regional Administrator,Region IV.

[FR Doc. 78-5219 Filed 2-28-78; 8:45 am]

[6712-01]

FEDERAL COMMUNICATIONSCOMMISSION

[Report No. 1-438]COMMON CARRIER SERVICES INFORMATIONInternational and Satellite Radio Applications

Accepted for FilingBY THE CHIEF, COMMON GARRI-ER BUREAU.

FEBRUARY 21, 1978.The Applications listed herein have

been found, -upon initial review, to beacceptable for filing. The Commissionreserves the right to return any ofthese applications if, upon further ex-amination, it is determined they aredefective and not in conformance withthe Commission's rules, regulationsand Its policies. Final action will notbe taken on any of these applicationsearlier than 31 days following the dateof this notice. Section 309(d)(1).

FEDERAL CO UNICATIOSCoMIssION,

WIL Aum J. TRICARICO,Secretary.

SATELLITE COMuICATIONS SERVICES

MD, 297-CSG-R-78 Communications Sat-ellite Corp. (WA27), Clarksburg, MD. Re-newal of Station License (Developmental)from February 15, 1973 to February 15,1979.

AL, 312-DSE-P/L-78 TV Cable Co., of An-dalusia, Inc.. Andalusia, AL. Authority toconstruct, own, and operate a DomesticCommunications Satellite Receive-OnlyEarth Station at this location. Lat.31"18'45" N., Long. 86"31'45" W. Rec. Freq.3700-42001MHz. Emission 36000F9., with a6-meter antenna.

VA, 313-DSE-P/L-78 The Christian Broad-casting Network, Inc., Virginia Beach, VA.Authority to construct, own, and operate aDomestic Communications Satellite Re-celve-Only Earth Station at this location.Lat. 36"48'07" N., Long. 76°11'40" W. Rec.Freq. 3700-4200MHz. Emission 36000F9.,with a 10-meter antenna.

MN, 314-DSE-P/L-78 American Television& Communications Corp., Mankoto. MN.Authority to construct, own, and operate aDomestic Communications Satellite Re-celve-Only Earth Station at this location.Lat. 44-10'24" N., Long. 93'57'04" W. Rco.lFreq. 3700-4200MHz. Emission 3G000F.,with a 5-meter antenna.

MI, 315-DSE-P/L-78 Qerity BroadcastingCo., Essexvlle, PAI. Authority to con-struct, own, and operate a Domestia Com-munications Satellite Receive-Only EarthStation at this location. Lat. 43*360'53" W.,Long. 83*50'37" W. Rec. Freq. 3700-4200MHz. EmlU-ton 36000F9., with a 4,6-meter antenna.

FL, 316-DSE-M/L-78 North LauderdaleCablevision, Inc. (WE56), North Lauder-dale, FL. Modification of License topermit share use In the Earth Station.

TX, 320-DSE-P/L-78 Valley Cable TV,Inc., Brownsville, TX. Authority to con-struct, own, and operate a Domestic Com-munications Satellite Receive-Only EarthStation at this location. Lat. 25°57'16" N.,Long. 97°30'58" V. Rec. Freq. 3700-4200iMHz. Emission 36000F9., with a 0-meter antenna.

TX, 321-DSE-P/L-78 Valley Cable TV,Inc., Weslaco, TX. Authority to construct,own, and operate a Domestic Communica-tions Satellite Receive-Only Earth Stationat this location. It. 2608'10" N., Long.97"57'29" W. Rec. Preq. 3700-4200Mtz.Emission 36000F9., with a 4.3-meter anten-na.

TX, 322-DSE-P/I-78 Valley Cable TV,Inc., Harlingen, TX. Authority to con-struct, own, and operate a Domestic Com-munications Satellite Receive-Only EarthStation at this location. Lat. 26'10'06" N.,Long. 9741'36" W. Ree. Freq. 3700-4200MHz. Emission 36000F9., with a 6-meter antenna.

TX, 323-DSE-P/L-78 Valley Cable TV,Inc., Raymondvlle, TX. Authority to con-struct, own, and operate a Domestic Com-munications Satellite Receive-Only EarthStation at this location. Lat. 26°25°42" N.,Long. 9747'10" W, Rec. Freq. 3700-4200MHz. Emission 36000FI9., with a 6-meter antenna.

CA, 324-DSE-P/L-78 Sammons Communi-cations Inc., Stanislaus County, CA. AU-thority to construct, own, and operate aDomestic Communications Satellite Re.ceive-Only Earth Station at this location.Lat. 37*27'55" N., Long. 120°54'59" W. Ree.Freq. 3700-4200MHz. Emission 36000F9.,with a 4.5-meter antenna.

MI. 325-DSE-P/L-78 Muskegon Cable TVCo., Norton Shores, MI. Authority to con-struct, own, and operate a Domestic Com-munications Satellite Receive-Only EarthStation at this location. Lat. 4312'07" N.,Long. 86"15"41" W. Rec. Freq. 3700-4200MHz. Emission 36000F9., with a 4.5-meter antenna.

IL, 326-DSE-P/L-78 Central CableSystem, Inc., Clinton. IL. Authority toconstruct, own, and operate a DomesticCommunications Satellite Receive-OnlyEarth Station at this location. Lat.40*09'45" N., Long. 88'5645" W. Ree. Freq,3700-4200MHz. Emission 36000F9., with a5-meter antenna.

MA, 327-DSE-P/L-78 Nantucket Cablevl-slon Corp., Nantucket, MA. Authority toconstruct, own, and operate a DomesticCommunications Satellite Receive-OnlyEarth Station at this location, Lat.41'16'50" N.. Long. 70'10'10" W. Roe. Freq.3700-4200MHz. Emission 36000F9., with a5-meter antenna.


NOTICES

AR, 328-DSF-P/L--78 Twin Lakes Televi-sion Co., Berryville. AR. Authority to con-struct, own, and operate a Domestic Com-munications Satellite Receive-Only EarthStation at this location. Lat. 36°22'58" N.,Long. 93"33'32" W. Rec. Freq. 3700-4200MHz. Emission 36000F9., with a 5-meter antenna.

NM, 329-DSE-P/I.-78 Las Cruces TVCable. Las Cruces, NL Authority to con-struct, own, and operate a Domestic Com-munications Satellite Receive-Only EarthStation at this location. Lat. 32'17'49" N.,Long. 106°46'42" W. Rec. Freq. 3700-4200MEHz. Emission 36000F9., with a 4.5-meter antenna.

IA. 330-DSE-P/L-78 Greater Algona CableTV, Inc., Algona. LA. Authority to con-struct, own, and operate a Domestic Com--munications Satellite Receive-Only EarthStation at this location. Lat. 43'04'05" N..Long. 94"12'19" W. Rec. Freq. 3700-4200MHz. Emission 36000F9., with a 5-meter antenna.

IA. 331-DSE-P/L-78 Greater Humboldt-Dakota City Cable TV. Inc., Humboldt,IA. Authority to construct, own, and oper-ate a Domestic Communications SatelliteReceive-Only Earth Station at this loca-tion. Lat. 42"42*23" N., Long. 94°12'19" W.Rec. Freq. 3700-4200MHz. Emission36000F9., with a 5-meter antenna.

WY, 332-DSE-P/L-78 New Castle CableTV, Inc., Elk Mountain, WY. Authority toconstruct, own, and operate a DomesticCommunications Satellite Receive-OnlyEarth Station at this -location. Lat.43"4342" N., Long. 104°02'57" W. Rec.Freq. 3700-4200MHz. Emission 36000F9.;with a 4.5-meter antenna.[FR Doc. 78-5396 Filed 2-28-78: 8:45 am]

[6720-01]

FEDERAL HOME LOAN BANK BOARD

FEDERAL SAVINGS AND LOAN INSURANCECORPORATION

Publication of Accounting Bulletin IA-5

FEMRUARY 17, 1978.AGENCY: Federal Home Loan BankBoard.ACTION: Publication of bulletin.

SUMMARY: This bulletin providesguidance to institutions whose ac-counts are insured by the Federal Sav-ings and Loan Insurance Corporation,and service corporations and joint ven-tures of such institutions, with respectto audits by internal auditors. Thesubstance of the information con-tained herein was available in a, prede-cessor bulletin-issued on May 23, 1967,now superseded; the present reformu-lation is necessary for updating andrevision, as described below.

EFFECTIVE DATE: January 1, 1978.

FOR FURTHER INFORMATION,CONTACT:

Gerald P. Weintraub of the Office ofExaminations and Supervision; Fed-eral Home Loan Bank Board, 1700 GStreet NW., Washington, D.C. 20552,telephone 377-6539.

SUPPLEMENTARY INFORMATION:Section 563.17-1 of the regulations forthe Federal Savings and Loan Insur-ance Corporation (12 CFR 563.17-1)mandates that each insured lnstitu-tion be audited at least annually In amanner satisfactory to the Corpora-tion. Policy Statement 571.2 (12 CFR571.2) provides that this audit require-ment may be satisfied by means of anaudit by a public accountant or inter-nal auditor, and prescribes that audi-tors comply with such additional re-quirements as may be issued by theBoard's Office of Examinations andSupervision. Bulletin PA-Ta (reissuedat 42 FR 29962-4; June 10, 1977) setsforth the Office's policy with respectto audits of insured institutions by in-dependent public accountants. Guide-lines for internal auditors were simi-larly established by Bulletin IA-4 onMay 23, 1967.

Since its adoption, Bulletin IA-4 hasbecome outdated and would have re-quired substantial revision to comportwith regulatory changes and-other de-velopments of the last ten years;therefore, Bulletin IA-5 was developedinstead.

In addition to a change of format,the major differences between the oldand new guidelines are as follows:

1. Bulletin IA-4 set forth detailedauditing procedures concerning allfacets of an institution's operations;Bulletin IA-5 recognizes the impracti-cality of specifying in advance therange and scope that may be appropri-ate for an auditor's review and directsthe internal auditor to use generallyaccepted auditing standards, supple-mented by certain appropriate mini-mum scope procedures.

2. With respect to the qualificationsof an internal auditor, Bulletin IA-5specifies familiarity with all applicablepublications which pertain to thereview, including periodic releases ofthe Financial Managers Society forSavings Institutions, Inc., and the

.American Institute of Certified PublicAccountants. Bulletin IA-4 made nomention of the auditor's continuing re-sponsiblity to remain aware of currentauditing developments.

3. Bulletin IA-4 provided for anaudit of transactions originatingwithin each 6-mpnth period; BulletinIA-5 recognizes the growing complex-ities of the savings and loan businessand permits various test checks to beperformed on an annual basis.

4. Bulletin IA-5 clarifies that allaudit procedures and the review of In-ternal controls are fully applicable toaccounting records maintained onautomated equipment and refers toapplicable Bank Board and AmericanInstitute of Certified Public Accoun-tants policy statements.

5. Bulletin IA-5 incorporates the fi-nancial statement requirement setforth in Insurance Regulations 563.17-

1(a)(2) and 563.45: Bulletin IA-4 wasadopted prior to the publication ofthese requirements.

6. Bulletin IA-5 is applicable toaudits of service corporations whichwere not in existence when BulletinIA-4 was adopted.

7. Part Two of Bulletin IA-4, per-taining to "Modifications of Examina-tion Procedures,' was not included inBulletin IA-5 because It is obsoleteand incompatible with present exami-nation procedures.

Burzr IA-5: AUIrrs or INsUam Issrrru-TIONS. SERVICE CORPORATIONS. AND JOMNTVzruaRES BY IYrXERNAL AUDIToRs

This Bulletin supplements the FederalSavings and Loan Insurance Corporation'sStatement of Policy (§ 571.2 of the Rulesand Regulations for Insurance bf Accounts)with respect to audits by internal auditors.Internal auditors must meet all applicablerequirements of such Statement as well asall requirements set out in this Bulletin.

L APPLUCABE-.ADrrnq sTANDAP.s

As a minimum, internal auditors must usegenerally accepted auditing standards. Theinternal auditor shall be familiar with appli-cable publications of the Financial Manag-ers Society for Savings Institutions, Inc.(ThiS), and of the American Institute ofCertified Public Accountants (AICPA). in-cluding the "Internal Auditors Manual forSavings Institutions." (F dS); the industryaudit guide. "Audits of Savings and LoanAssociations," (AICPA); "Statements on Au-diting Standards," (AICPA): and subsequentSAS releases promulgated periodically bythe AICPA.

IL AUDIT PERIOD

The term "audit period" refers to theperiod of time between "audit dates." Theperiod should be twelye (12) calendarmonths and may not be changed withoutapproval of the District Director-Examina-tions.

MI. AUDIT DATE

The tern"audt date" refers to the AS OFdate for annual audit reports to the DistrictDirector-Examinations. The audit dateshould coincide with a month-end date.Nothing said herein should be construed asprohibiting the commencement of auditwork on an unannounced basis or as prohlb-Iting continuous audit programs.

IV. SCOPE or AUDIT

A. GcneTOZ requirement& The internalauditor shall be familiar with the statutes,rules and regulations (Federal and State)under which the Institution being auditedoperates, and with Its charter and bylawprovisions.

The audit should incorporate the neces-sary procedures to satisfy the internal audi-tor that there Is compliance with the a'ppl-cable regulations that relate to accountingmatters and accordingly may affect the In-stitution's financial position or results of op-erations.

In instances where the Internal auditoranticipates any material potential loss Inthe assets of the institution or a serious vio-lation of any Federal or applicable Stateregulation, the circumstances should be dis-cussed with the District Director-Examina-


8295

NOTICES

tions as soon as the audit work which dis-closed the situation is completed.

Nothing in this Bulletin shall be con-strued to imply authority for the omissionof any procedure which internal auditorswould ordinarily employ in the course of anaudit made for the purpose of making -astatement as to the accuracy of financial re-ports.

Any of the procedures referred to hereinwith respect to the review of Internal con-trols or audit procedures are fully applica-ble to accounting records maintained onautomated equipment. The internal auditorshall be familiar with appropriate publica-tions in this area as may be issued fromtime to time by the Federal Home LoanBank Board, OES, FMS. or AICPA, Includ-ing Bulletin PA-7-1 and "Audits of ServiceCenter Produced Records" (AICPA, 1974).

B. Board of Directors' resolution. As ofthe effective date of this Bulletin (for exist-ing Internal audit programs) and/or at thetime of commencing a new internal auditprogram, the board of directors of the insti-tution and, where applicable, the board ofdirectors of each service corporatloi4 shallfurnish the District Director-Examinationswith a copy of the minutes of the directors'meeting at which a resolution providing forthe following was adopted:

1. That the internal audit shall be per-formed to the-satisfaction of the District DI-rector-Examinations.

2. That the internal auditor is indepen-dent of all association operating, and man-agement personnel, that the auditor shallhave access to all records of the associationwithout prior notice wherever they may beand that the auditor shall report to the in-stitution's board of directors (or audit com-mittee thereof) any denial of access to suchrecord by any officer or employee.

3. That the internal auditor shall makeavailable, if requested by the District Direc-tor-Examinations, completed audit -workprograms and related audit workpapers, andshall render, If requested, a letter report tothe District Director-Examinations indicat-Ing specific auditing procedures performedand the results thereof.

4. That the internal auditor shall performspecific auditing procedures in instanceswhen the District Director-Examinationshas Issued written instructions to the Inter-nal auditor. These specific procedures maybe In addition to those customarily per-formed by an internal auditor in accom-plishing the audit program. The internalauditor may communicate to the board ofdirectors (or audit committee thereof) andappropriate management officials, any spe-cific instructions received from the DistrictDirector-Examinations, If in the Judgmentof the auditor, such communication shouldbe made.

5..That the internal auditor shall meet atleast annually with either the institution'sand/or service corporation's full board of di-rectors or a duly elected or appointed auditcommittee of the board of directors. Thepurpose of the meeting would encompass adiscussion of written reports which set forththe scope and results of work accomplishedsince the preceding meeting (including theannual report to the District Director-Ex-aminations) along with recommendationsand corrective actions taken by operatingpersonne. In connection with the meetingat which the annual report Is discussed, thedirectors shall promptly file a letter withthe District Director-ExamInations acknowl-edging the meeting and setting forth action

to betaken with respect to any deficienciesnotedlin the audit report.

6. That the Internal auditor shall, upondiscovering an apparent defalcation or beinginformed of such a matter, determine thatthe institution has immediately notified theDistrict Director-Examinations In writing ofthe -apparent defalcation. If the Institutiondid not make such notification, the Internalauditor shall immediately notify the Dis-trict Director-Exardinations and the board-of directors of such defalcation.

Additionally, for new internal audits, thexesolution shall confirm the items requiredby section 571.2(c)(1)(II) of the Policy State-ment.

C. Review of the system of internal con-trol The internal auditor has the respons-bility to review and evaluate the adequacyof the institution's system of internal con-trol in establishing the scope of his audittests. Prior to any review, the internal audi-tor should be familiar with the chapters oninternal control contained In the "Internal

- Auditors Mahual for Savings Institutions"published by the FMS.

At this time, the FHLBB has not attempt-ed to devise a standard list of internal con-trols which should be adopted by all savingsand loan institutions and their subsidiaries.It is the responsibility of the internal audi-tor to develop a comprehensive controlquestionnaire as part of his review of the In-ternal controls. -

In conjunction with and in the renderingof the annual report (see Part V of this Bul-letin), the internal auditor shall disclose anymaterial weaknesses In the institution'ssystem of internal controls and shall includerecommendations for strengthening con-trols in the areas of such weaknesses, to-gether with corrective actions taken by theinstitution's management or operating per-sonnel.

The internal auditor must review and testthe written descriptions of the institution'ssystems of Internal controls for the majorareas of activity. The internal auditor Iscautioned not to accept management's state-ments regarding controls in existence. Theauditor should determine through observa-tion, inquiry and- tests of transactions thatsuch controls are operative. Workpapersmust indicate the methodology and the re-sults of the tests. Any deficiences noted bythe internal auditor must be reported tomanagement and the board of directors andappropriate follow-up action must be taken.

As a minimum, matters regarding physicaland accounting controls in the followingareas of an institution's operations shouldbe reviewed and tested (such list Is not de-signed nor intended to supplant the Internalauditor's Judgment): Cash-Cash balances(on hand and in banks); Cash receipts (in-cluding payments on loans, deposits and in-vestments); Cash disbursements (includingwithdrawals, lending, and expenses); Con-signment items (travelers checks, saingsbonds, etcel Marketable securities and otherinvestments. Loans-Tending policies andProcedures; Documents; Delinquencies; In-terest income and accrual computations;,Unique controls required by specific types-of loans. Real estate owned (acquired for in-vestment and/or through foreclosure or inlieu thereof). Property. Other assets and de-ferred charges. Savings accounts-Inactiveaccounts; Passbooks and certificates; Open-ing; Closing; Interest expense and accrualcomputations. Borrowed money. Advancesby borrowers for taxes and insurance. Otherliabilities and deferred credits. Net worth

and/or retained earnings accounts. Reviewof operations.

D. Confirmation of loans and savings ac-counts. The audit must include satisfactoryconfirmation of loans and savings accountsby direct correspondence. The internal audi.tor shall determine the extent of confirma-tion that in the auditor's Judgment is ners-sary. The internal auditor's workpapershall clearly disclose the number and per-cent, by both number and dollar amount, ofloans and savings accounts confirmed, Theworkptpers must also diclose the type ofconfirmation used (i.e., positive or negative)and the basis used to select accounts forconfirmation. If statistical sampling is usedas the basis for selecting accounts, the work-papers must also disclose the method usedand the confidence level achieved.

The internal auditor shall include in theperiodic reports to the board of directors ofthe institution, and in the annual report tothe District Director-Examination, any ma-terial exceptions to confirmation requeststhat are not satisfactorily reconciled.

E. Inspection of loan documents. The In-ternal auditor has the responsibility to de-termine the extent that documents support-ing loans made and purchased, prior andsubsequent to the date of the previous auditreport, are to be inspected. The auditor'sworkpapers shall clearly disclose the per-cent of the number of new loan files exam-ined to the number originated In the cur-rent audit period. In addition, tho workingpapers must disclose the number and per.cent of files examined applicable to previousaudit periods to the total number of loansoutstanding as of the end of the auditperiod. The workpapers shall also disclosethe basis used to select loan accounts fordocuments inspection and the specific docu-ments Inspected for each loan.

The Internal auditor shall include In theperiodic reports to the board of directors ofthe institution, and in the annual report tothe District Director-Examinations, any ma.terial exception noted In the loan docu-ments examined that are not satisfactorilyresolved.

F. Loans and participations sold or pur-chased. The internal auditor has the respon.siblilty to determine the extent of audittests to be performed on loans and particl.pations sold or purchased. The audit work-papers shall clearly indicate the extent ofaudit procedures performed and conclusionsreached.

Audit procedures shall include confirina-.tion of s!gnficant balances of loans or par-ticipatIonz sold or purchased and the signifi-cant tsrr- of the purchase or sale agree.ment vdth the purchaser or seller.

For lonn-5 or participations purchased, theinternal auditor's workpapers shall clearlydisclose the methods used to determine theadequacy of auditing procedures with re-spect to loans serviced by others. Such pro-cedures shall Include, as appropriate, ob-taining letters from the -ervicing organtz".Cion's pubEc accountant and/or internalauditor confirming the etent to whichtheir examination included confirmation ofsuch loans, examination of related docu-ment files and determination of the accura-cy of dilinquency reports to the purchaser,and the results of such audit tests.

G. Revicw of adequacy of valuationallowances. Particular care should be exer-cised In determining the need for and theadequacy of valuation allowances. The in.ternal auditor shall consider the need forobtaining appraisals by independent, profes.

FEDER.AL R-GISTER, VOL 43, NO. 41-VIEDNESDAY, MARCH 1, 1970

8296

sional appraisers. The internal auditor shalldiscuss with the District Director-Examina-tions any proposed independent appraisalprogram 'prior to proceeding with such aprogram.

H. PersonneL The internal auditor shallendeavor to avoid the use of operating per-sonnel in the performance of the audit.However, if it is necessary to use such per-sonnel, they should be closely supervised.Operating personnel must not be used toaudit the records of the department towhich they are assigned or the work forwhich they are responsible.

V. ANNUAL AUDIT REPORT TO THE DISTRICTDIRECTOR-EXAMINATIONS

An annual report of the internal auditmust be prepared as of the audit date. Thereport should contain an outline of thescope and results of the work accomplished,along with the internal auditor's findingsand recommendations, and the correctiveactions taken by the institution.

The annual report must contain a sum-mary of all matters of material substancecontained in any reports'to the institution'sboard of directors (or audit commlttee).since the preceding annual report.

The annual report shall contain a state-ment to the effect that the internal auditorhas reviewed-all annual and semiannual re-ports submitted to the Federal Home LoanBank Board by the insured institution orservice corporation during the audit period,and that the reports are accurate and pre-sent the correct financial condition in accor-dance with the instructions for the reports.

The annual report shall also contain suchfinancial statements as will meet the re-quirements for financial statements con-tained in Insurance Regulation 563.17-l(a)(2) and 563.45 (when applicable).

The term "annual audit report" refers, inaddition to the material specifically re-quired by this section, to the report on in-ternal control, or to any other special orsupplemental reports related to the audit orthe report thereon, but not to the periodicreports submitted to the directors if mattersof material substance contained in the peri-odic reports are summarized in the annualreport.

VL FILING OF ANNUAL AUDIT REPORTS

The internal auditor shall file a copy ofthe annual audit report with the DistrictDirector-Examinations within 90 calendardays following the audit date. If the inter-nal auditor finds that completion of theaudit and Issuance of his report will requirea period in excess of 90 calendar days fromthe audit date, an extension of time fromthe District Director-Examinations shouldbe requested in writing, providing the rea-sons for such delay. Unwarranted delay incompletion of the audit or report thereonmay be a basis for rejection of the internalaudit by the District Director-Examina-tions.

VIL CHANGE OF INTERNAL AUDITOR

If the board of directors, by appropriateresolution, terminates an internal auditor.the institution must notify the District DI-rector-Examinations in writing (with acopy to the terminated auditor) within 15days folowing such termination. Such notifi-cation must indicate the reason for the ter-mination and must state whether in thepast 24 months there were any disagree-ments with the internal auditor on anymatter of auditing principles or practices,

NOTICES

which disagreements if not resolved to thesatisfaction of the Internal auditor wouldhave caused the auditor to makd referencein the annual audit report to the subjectmatter of the disagement. The board ofdirectors shall request the terminated audi-tor to furnish a letter to the District Direc-tor-Examinations stating whether there isagreement with the statements contained Inthe letter of the institution and, If not, stat-ing the respects In which there Is disagree-ment.

A new internal auditor should be namedwithin sixty days of the termination of aninternal auditor. Action of the board of di.rectors as provided by section IV.B of thisbulletin shall be accomplished.

Ir. OTHER REQ XUI I-hrsThe internal auditor shall not rely upon

the performance of an examination by theFederal Home Loan Bank Board's Office ofExaminations and Supervision. or reportbased thereon, to diminish his responsibilitywith respect to an audit of an insured lnst-tution or service corporation or subsidiarythereof.

This bulletin becomes effective for audityears beginning after December 31, 1977and supersedes all previous IA bulletinsissued by this Office. Inquiries and requestsfor information regarding matters coveredby this' Bulletin or Statement of Policy571.2 should be directed to the District Di-rector-Examinations for the Federal HomeLoan Bank District In which the homeoffice of an Insured Institution is located.

WILLIAM SPRnAou,Director Office of

Examinations and Supervision.

(Sees. 402. 403. 407. 48 Stat. 1256. 1257. 1260.as amended: 12 U.S.C. 1725, 1726, 1730;Reorg. Plan No. 3 of 1947, 12 FR 4981, 3CFR, 1943-48 comp., p. 1071.)

By the Federal Home Loan BankBoard.

RO;ALD A. SlumEn,AssistantSecretary.

[FR Doc. 78-5382 Filed 2-28-78; 8:45 am]

16730-01]FEDERAL MARITIME COMMISSION

AMERICAN EXPORT DIVISION OF FARRELL

Notice of Substllulion

The Federal Maritime Commissionhas been notified by counsel for Far-rell Lines Inc. that American ExportLines, Inc. will be merged Into FarrellLines Inc. on or about March 28, 1978;and that thereafter American Exportwill be operated by Farrell Lines as"American Export Division of Far-rell" As a result of this merger, Far-rell Lines Inc. will succeed by oper-ation of law to the rights and liabil-ities of American Export Lines, Inc.,including the rights and liabilitiesunder the respective approved section15 Agreements to which AmericanExport Lines, Inc. is presently a party.Accordingly, the records of the Feder-al Maritime Commission concerningapproved agreements to which Ameri-can Export is presently a party will be

8297

changed, effective the date of themerger, to substitute the name of"American Export Division of Far-rell," as a participating carrier, inplace of American Export. In addition,the conference and ratemaking agree-ments to which American. Export ispresently a party are obligated tonotify the Commission that they havealso changed their records according-ly. The following is a list of the agree-ments involved:

Conference and rate agreements

821082208420855888509214928923994619522-A

9522-B9522-C954595796159329954

101171015510261

Other than conference and rate agreements

952390279705

10276

6231100501020310138

102671030594819996

1014810149804328064580944

8034697359905

10030100511011810254

9233

Terminal agreements

T-2901 T-2903 T-2391


FRANCIS C. HUiRsN=Secretary.

EFR Doe 78-5295 Filed 2-28-78; 8:45 am]

[6730-01]

[Independent Ocean Freight FowarderLicense No. 149OR]

AVERY & TAYLOR IMPORT-EXPORT SERVICES,

INC.

Order of Revocation

On February 18, 1978, Avery &Taylor Import-Export Services, Inc.,voluntarily surrendered its Indepen-dent Ocean Freight Forwarder LicenseNo. 149OR for revocation.

By virtue of authority vested in meby the Federal Maritime Commissionas set forth in Manual of Orders, Com-mission Order No. 201.1 (Revised),§ 5.01(c), dated August 8, 1977;

It is ordered, That IndependentOcean Freight Forwarder License No.149OR issued to Avery & TaylorImport-Export Services, Inc., be and ishereby revoked effective February 18,1978 without prejudice to reapply fora license In the future.

It is further ordered, That a copy ofthis Order be published in the FEDmaiL


8298 NOTICES

REGISTER and served upon Avery &Taylor Import-Export Services, Inc.,

LERoY F. FuLLEn,Director, Bureau of

Certification and Licensing.tPR Doe. 78-5292 Piled 2-28-18; Ik45 am]

[6730-01]CERTIFICATES OF FINANCIAL RESPONS1BITY

(OIL POLLUTION)Certificates Issued

Notice Is hereby given that the fol-lowing vessel owners and/or operatorshave established evidence of financialresponsibility, with respect to the ves-sels indicated, as required by Section311(p)(1) of the Federal Water Pollu-tion Control Act, and have been issued

*Federal Maritime Commission Certifi-cates of Financial Responsibility (OilPollution) pursuant to Part 542 ofTitle 46 CFR.Certificate

No.Owner/operator and tessels

01087.... Dampskibsselskabet Torm -A/S: TormnHerds.

01106..... N.V. Stoomvamrt-Maatschappj Oostzee:Winsum.

01323.... Manchester Liners Ltd.: Seatrain Tren-ton.

01428... Ocean Transport & Trading Ltd.: Men-estheus.

01613.-- Reardon Smith Line Ltd.: Welsh City.01877. Carbocoke Societa Di Navigazlone SPA:

Daigi Lagrange, Solaro.02194. Compagnle Generale Maritime: Gau-

guin.02274.. Albs Ardua Societa D1 Navigazlone; Vo-

luntas.02418... Sidermrar SP.A.: Permeus.02458.. The China Navigation Co. Ltd.: Coral

02877. Nippon Yusen Kabushiki Kaisha: JinguMarv, Wakatae Maru.

03004.... Rederi Ab Soya: Traicta.03727.. Continental Oil Co.: Sinclair 8.04447.. Wllllamette-Western Corp.: Afultnona

Wahkiakum.04562.. Okada Kalun Kabushiki Kalsha: Grace.04564.. Yamashita-Shlnnihon Kisen R.alsha:

Wakashige Maru.04052. Astroclelo Compania Navlera S.: Ath-

anasios;05040..... General Construction Co.: Mukilteo.05537. Empresa Navegaclon Manibisa: Jose

Mart, O'Hitggins.05577.... Par Eastern Shipping Co.: Pioner Wadi-

vostoka.06478.. Korea Marine Industry Development

Corp.: Soo Gong ,1.06510. Compagnle Nationale Algerlene Do

Navigation: Gara Djebitet, 'lemcen,Medea.

07743.... Yangmlng Marine Transport Corp. MingOCear Aling Gian Ming Joy.

08131 . Empresa Naveaclon Caribe: Primero DeMayo, Puerto De Vita, ComandanteVito AcunaL

08234 . Burmah Off Tankers Ltd.: .Burmah En-deavour.

08473..... Tokyo Maarine Co., Ltd.: Fuiaki Maru.09098.. The Boswell Oil Co. Cem 2.10227..... Professional Navigation Corp.: Golden

Grumpu10254.. HambroS.A.: Ran ar10405.... J.A. Reinecke I.G.: Canaima.10696...... K.G.G. Co, S.A.: Seat Bird No. 83.12041..... Uiterwyk Corp.: Miriam.12145.. Chevron U.S.A. In.: ChzevronArizona.12586. Amer-Yhtyma Oy .Fian-Amer.126311..... Hamilton Bros., Inc.: Maray.12620..... Compania Micacca S.A.: Victoria T.12727.. SeaTradngLtd: Windgou>Elai.

CertificaleOwner/operator and vessels

12805 .... Compagnie Generale D'Armements Mar.Itimes: Alpha Mariner.

13048.. Monumental Marine Inc.: Doric Mer-chant

13167 _. Map Tankers Inc. Unicorn Derek.13168-.. Chesterton Corp Mreguan V.13169 -- Bulkeargo Navigation Corp. Ltd.: Poll.13171 .... International Transport Simoon Inc.:

Simoon.13172- International Transport Solana Inc.:

Solano.131173 ..- Transocean Martime Transport Inc.: Ori.

en ol Endeavour Oriental Banker.13174.. AY SorensenAIS: A.E.S.13175.... Lunden: Charlotte S.13176 ...... Partrederlet: Star Eitt: Star Sea.13177.... Marilambri Compania Navlera, SA. of

Panama: Raphaella13178..... Seacalf Shipping Corp- Aiolos.13179... Winston Corp.: lVinston13183..... Partrederlet Tongala: Tongala.13184..... Italmare SP.A.: Lilia Cuomo.13185. Golar Gas Transport, In.: R7zannur.13166..... Clausen Singapore Private Ld. Codan.

JngerClausen.13187. Clearwater Navigation S_-A: Makata.13188. Orange Field Steamship Co. Inc.: Mari

Gold.13189..... Kuwana Kalun K.K.: Sokai Maru.13190.-- Nagashlki Xogyo Kabushikl Kaisha:

Slinsei.Maru.13191.... Fletamentos Marittmos. S.A Tarragona.13192.. Al Ala Tanker Co. Inc: Al Ain.13193. Southern 2.etals Shipping Ltd.: Dia-

mond.13194 ..... Stella Corpz Corinthiako&13195..... Osprey Dredge nd Derrick Co. Inc.:

Pelican.13196.. Greenpeace F"oundatlon/Save the

Whales Ohana Kaf.13197 ...... Sunoco Terminals. Inc.: LOU It, New Or-

zeans.13199- ,eplion International Inc.: Kanuka

Forest.13200. Canal Freight Lines Inc.: CC 206, CC 207,

CC2Ll.13201-.. Trans Seas Cargoes Corp. of Libera:

MESSLNAKI AK'TIDA.13202.. Partsrederlet Fjordas: .fjordaas.13203 _.. Aeolian Beach Marine. Inc.: EUR OSUN.13207--. K/S Mere Sc=la XV: MERCANDIAN

STAR.13208..- K/S Meri Scandia XIV: Mercandian

Prince.13209 - Tamass os Shipping Co. S.A. Panama An-

tonios.13211. La Sabanas Shipping Co. S-AZ Ocean

roead.13232.. Rederilj North Pole N.V.: North Pole,

South Pole.13263.... Blue Jay Co.: ROBERTL., TED E.13292 Mlrs C.". Dannners: Jan Willem.13294 . Blue Mast Shipping Co. S.A.: Argolikoa13304.. Reedereigesellschaft MS Planet Henry

Gerdau KG G.n.bh. & Co.): Planet13323 _.. Stolt Norness Inc.: Stolt Norness.13341.... Agean Sky Incz Blue Pearl13366-.. Mar De Plata Co. Naviera SA. Panama:

•Trnsworid Goliath.13370.- Bowoon Bangsa Co.. Ltd.: Bowoon No. 9.13428.. Westfield Shipping Co. Ltd.: Thames-

13436.... South Continental Tanker Corp.. Inc.:Transud Hl.

13444.. Norfolk Shipping Co. Ltd: Eastern• Moon.

13468.... Thoresen International A/S: Torafjord,Torasund, Hal Hing.

13474... Ever Sunshine Navigation SA.' SilverStar.

13475.... Marmlra Compania Haviera S.A.: Panta-zis Cafa&

13476.... Macky De Navegaclon S.Az Atlantic At.bafrosa

13478._ I/S Karen Winther: Zaren Winther.13483. Messers TimberShippingInc.: Strathkrn.3486...... Syntagma Shipping Co. S.A.: loanna V.

13491.__ I.K. yo Kasam Ryujin Maru.13495. Pxoteas Maritime Inc.: Singapore Pro-

13498.. Brittas.Bay Shipping Co. Ltd.: ilvesrgatc.13497.. Oriental Petroleum Carriers. Inc.;

Energy TMnsporLt

CertificateNo.

Owner/operator and vessels13498 . Fairway Shipping Inc.: Fairua.13499 ...... Jermyn Shipping Corp.,: iakJ .13493..... Associated Express Container Services,

Inc.: Oriental Executive.13500. Intercontinental Car Carrers SA.,: PresI.

dent.13501.... Panama Hero Shipping S, Hero No. J,13502-- Dodona Shipping Corp., Asphalt ,er,

chant13503 ...... Standard Navigazlone S.P.A.: Punta

Stella.13504 . Adelfan Corp.: PHGII.13505 . Citadel Shipping Co. Ltd.: Anotlasia IL13506 . Kelburn Shipping Corp.: Union Reefer13508.. Shlnselleaun X C. Osa.ca Reefer,13509 . Partrederlet Wllnlna6 1VInLna.13510.-... Bigal Shipping Corp.: Cherry Flower.13512. Shipco 2296. Inc.: KeystoneCanyon,13513..... Partrederlet Thor Sta. ThorStar.13514..... Nefell Compania Maritima S.A. Panama'

Nikolcos13515.... Rt-deriet AF 24. November 197=k Jrtto

Danielsen.13516 ...... Neptune Gamma (PTE). Ltd: Neptune

Peridot13517..... Ace Navigation Co.. Ltd., Hlual Traveller.13518 . Ace Transportation Co., Ltd.: lual Trot-

ler..13520. Sanl Hart Zjadavashi .Xaru No. 10, Na.

dayosht Maru No. 15.13522.... Cala D'Ollvo S.P.A. Di Navigazione:

. Frigo Harmony.13526.. 1etterman. Ltd. NopalAudreV.13556 . Metropolitan Seaboard Corp,: Alvkalt UI.13558 ...... Marcostar Shipping Corp. S.A. Panama:

Eva.13565... LMi-Off, Inc.: Lilt Off.13576.. Standard Shipping. Inc.: Ja ymat Trilent.13580.-- Kalyo Suisan Habushiki aish: Kaivo

Maru No. 1,13582. Congelador War Tres SAU Congelador

Mar Wrea13583.... Congelador Mar Uno &A.: Congelador

Mar Uno.13584.... _Eastern Petroleum Carriers, Inc.: Energy

Generation.13585.. El Paso Sonatrach Tanker Ca.: lI Paso

Sonatrach.13586..- El Paso Paul Kayser Tanker Co.: El Paso

Paul Kayse.13587.. Arbyx Diamond Shipping S.A. Irgti

Diamond.13588...- Spillada Marltime Corp, of Liberia: Spi.

13589.- Overseas Petroleum Carriers, Inc.:£Energjjteso&rce.

13590.... WIJdzlcht B. V. Schepvaart & Handel-mJ: Eric.

13592.-- Dubhe Transport. Inc. Dubhe.13603 ...... Audley Shipping, Ltd.: Alamo.13607.. Gloria Maritime Navegunes S.A.: Olean.

der.13612.--. Liberian Cynosure Trazwport.% Inc.

World Probity.13613.... U.T.G.. Inc.: Freedom.

By the Commission.

FRANCIS C. HUR1tn ,Secretary.

[FR Doe. 78-5293 Piled 2-28-78: 8:45 am]

[6730-011CERTIFICATES OF FINANCIAL RESPONSIBILITY

(OIL POLLUTION)

Notice of Certificates Issued

Notice is hereby given that the fol-lowing vessel owners and/or operator.have established evidence of financialresponsibility, with respect to the ves-sels Indicated, as required by sectlon311(p)(1) of the Federal Water Pollu-tion Control Act, and have been IssuedFederal Maritime Commission Certifi-cates of Financial Responsibility (Oil


Pollution) pursuant to Part 542 ofTitle 46 CFR.

CertificateNo. Owner/operator and vessels

01032-.. The Graig Shipping Co., Ltd.: Gragl.uwyd.

01123... Hemisphere Transportation Corp.: TulsaGetty.

01266...- Aktleselskabet Ornen: Thor L01428... Ocean Transport & Trading. Ltd.:

Nestor, Nelamssus.01841. Chas. Kutrz & Co.,Jnc: Meton.01866. Industria Armamento S.P.A.: Honestas.02126-- -Moranla Oil Tanker Corp- Morania No.

400, T-30.02194- Compagnle Generale Maritime: Cavelier

De La Salle.02198.... Peninsular & Orlental Steam Navigation

Co- Stratheden, Strathesk.02259.-. Neste Oy: Uikku.02458.. The China Navigation Co.. Itd_: Nlmo&02465.... Koch-Ellis Marine, Contractors: HE 46

XE 47 LEC 5.02917.. Scherkate Saharni Keschtirani Melli

Arya: Arya Shahab, Aria Sepehr.03314... Gulf OR Corp.: American Independence.03502-. ShinyelSenpaku K.K.: Kinkasan Maru.03640-... Pan Ocean Bulk Carriers. Ltd: Pan Dym-

asty, Pan Crystal03708.. Puget Sound Tug & Barge Co.: ST-20.03866.... M. Smits: Louise Smirs. Ida Smite.04081. Jugoslavenska Oceanska Plovidba.

Xotor: ffosmaj.04114.. Italcarbo Societa DI Navigazione S.P.Az

Corallina.04163... Cenac Towing Co., Inc.: CTC0-197

CTCO-19&04172- Eklof Marine Corp- E-17.04179-. Ory.Bros. Marine Service of America.

Inc.: Fueler No. 3, CBL-302.04228. Compagnie Maritime Belge (Lloyd

Royal) S.A.: Montenaken.04262. Eddie Steamship Co.. Ltd.: Concord

Navigator Weilee, Panamas World.04357. Nedlloyd ILinen B.V.: Nedloyd Hout-

Man.04398. Hapa-Lloyd Aktiengesellschaft: Duessel-

dorf Expre.04437- Lebeouf Bros. Towing Co., Inc.: Barbara,

Boy, Dwigh Ellen. Leslie.04564. Yamashita-Shinnlhon Kisen Kaisha: NI-

chiru am-iL04803.. Brent Towing Co.. Inc.: Betly Bren4 B-

2124, B-2128, B-2224, B-2324, B-2424,B-2524.

04939. Panocean-Anco, Ltd.: Pass of Balmaia.05271- Compania Chilena De Navegadon Inter--

oceanica: Arauco.05377.. Manson Construction & Engineering Co.

and Osberg Construction Co- BC 4&05736. Flota. Cubana De Pesa: Rio Jatibonlco,

Rio Too.06063... Belcher Towing Co- Belcher No. 35.06510- Compagnie Nationale Algerlerne De

Navigation: Edough, Djurrjura, Beni-Saf Ghazaouet Tenes, Tin.Hinan,CoU. Chia. Djor Hodna, CherclheDeUy4, Ksar El BoukrarL.

06729. Overseas Containers Ltd.: TableBay.07361- Martin Fuel Distributors, Inc.: AHC 13,

MT. L07743.. Vangning Marine Transport Corp- Ming

Youth, Ming Young, Ming CGallenge,Ming Leader, Ming Wisdom.

07808.. Fleet Towing Co., Inc.: Van Y. PowelL207874- Sanmarco Vrontados S.A.: Polyzen.L

08682..... Ksnklchi Yukawa: Hosef Maru No. 58.08709.. Bibby Freighters, Ltdz Dorsetslire,08818.. Venus Carriers Corp. S.A.: Erca.09002- Commercial Transport Corp.: N.MS. No.

1400, N.M.S. No. 1401, N.MS. No. 1407N.M.& No. 1456, N.M.S. No. 1460,N.M.S. No. 1463, N.MS. No. 1466.

09389-. Triangle Shifting & Fleeting Service.Inc.: TC-20o GDM 264.

10035 . Crystal Steamship Co. S.A.: Rye Gas.10190.. Union Gulf Marine Co. S.A.: Union

Osaka.10260.. Hollywood Marine, Inc.: Hollywood 830.10433. .. stonlan Shipping Co.: Aleksandra Art-

jukhina, Jaan Anvel4 Ivan Rusakot,Aleksandr Vinokurov, Vera Lebcdeva,Petr Krrsikov, Vasiliy Shelgunov, Nice-lay Shvernik Leninskaja Gvardffa.

NOTICES

CerttcateNo. Owner/operator and ressels

10931. Hansung Shipping Co.. Ltd.: Scan Chat.lenger.

11011.... Power Corp. of Canada. LAd.: Louis 2.Desmaras.&

11286. Binion Marine Service. In: TCB 30711369-... P.T. Rig Tenders. Incz H-42.11372 Crowley Marltme International S.A-

Actime11541. Hancock Shipping Co. Ltd. Houston

Trader.11614-- Clung Gal Ship Management Co., Ltd:

Nada.11921.. Point Landng Fuel Corp PL 10L12024.. Venezolana De Buques-Venebuques C.A.

Ceres, Guirta.12115.. Nippon Kyodo Hogel K-K * Ohtsu Mam

Nishin Maru No. 3.12202.. Atwood Oceanics International SAz Re-

gional Enterprise,12374. Bayard Line (Madives). Lid. Kyula

,faru.12609. Houssam Shipping Corp. S.A.: Houam

B.12673 . M.J. Rudolph Corp.: R 12, R 14.12682.. Technlc& Aeromaritlma S.A.: Southern

Isle.13025. Federal Pacific (Liberla). IAd.: Federal

Rhine.13068.. Ocean & Gulf Shipping Corp. Triton.13084... The Oliver Transportation Co. Coen 125130968 Amherst Shipping Co, Inc. Arfe&13097. Mount Ocean Line S.A_ Cella Lily.13100.. Morgan Marine Corp. WGH-I&13101. Pacific Sunshine S.A.: Canopy.13104.... Continental (London). Ltd.: Lutetian.13127. Slshen Shipping (M'T). IAd Sishen.13145.. Jay Shree Shipping Prop. Jay Shree Tea

& Industries. Ltd. Jay Galatri,13156. Gemnil Transport. Inc.. Toracwbo.13f57- Triscantin Shipping S.A.: Oriental

Forest.13158.-.T... ushIm Unyu K : Sko VMaru.13159. Connaught Shipping S.A_ Great Brs.

bane.13160. Gloxinla Shipping Corp.: Alakrnon

Light.13161 - Kim-Marine Ltd-: Sconset13162.. KlmnShip Ltd: Great PoFint13163.. Orpheus Tanker Corp.: World Eulogy.13164- Transload & Transport. Inex TC-47,

2CB-68. REB-1901. RE.B-1902.13165. Josef Roth (Cyprus) Shipping Co. LAd.:

Anton Roth V/ktorla Roth 'HeleneRoth.

13166... Angall Shipping Co. Ltd.: Irener Sea.13170. Dumfries Shipping Co. IAd.: Eastern

Maid.13180. San Constantino Companla General Do

Buques S.A (Panamak) EFMAR.13191- Fletamentos Maritimos S.A Ceuta.13198. Sedlhyo Line Ltd.: Blue AktshLt13204 . University Maritime Ltd. Thistle Endea.

Vour.13205. Afthoros Maritime Corp. 2histle Wet.

um

13253. Jackson Marine Corp. Hustler Vaga.bond.

13254. Tug and Marine Operators tA: TeagueBay. Turquoise Bay.

13271.. South Island Shipping In: Energy Vi.talft

13289. Barro ColoradnShipplng Co. S.A_ Kefo.13314. Marubenl Maritime Management In=.

PacUc Royal. Pac-Ufc Master Pac€ficPeace.

13318. Prudential Tranport Corp.: Virginia.13328 . K/S A/S Kgrmoy Supply & Co- Earmoy

13350. Sunny Island Transport Inc.: Juno.13362.. Galatia Shipping Corp.: San Juan.13368. Sanko Risen (Cayman) Itd.: Neptune

13388- Presses Companla Naviera S.A. NiclaosAngelaki..

13390.. William Randolph: Little LiL13402.. Chiles Offshore Ltd: Teas Star.13409... PartrederletTallsnma Talisman.13424. Nordic Breeze Shipping Ltd, London

Nordic Breeze.13425...... KS Mere Scandla XVL Mercandlan

Moon.13426...... Vermala Shipplng Enterpres LAd.: Gay

Fidelity.

8299CertIf/cate

No. Oner/operator and resses13433- Theral Shipping Corp- Liberia Sea

Lin.13435.- K/S Royal Viking Sea, Royal Viking Sea.13543. Toleal Gyogro Kabtshlki Kalsha: Na-

dayoshi Mari No. 5 Nadayohi MarieNo. 7 Nadayo hi Marie No. IZ Nadayo-shl Mari No. 18, NadayosM Marx No.20.

13545.- Negros Shipping S.A.: Blue Ocean.13546- Kabushlki Kalsh Maruma Uodonya

Masu Marie No. &13547 Holland America Cruises N.V.: Rotter-

dam. Statendo m. Prinsendam.13548- Holland Amerika LlJn N V. Veendan,

Volendam.13551 - Deckshps Ltd.: SItfL13561. Cherry Point S.A.: Santa Lucia L13562.- Aurora Reederel Gm..b.H. & Co. KG. MS

Maretrader: Marerader.13567- Third ShIpmore Assciates Orerseas

New York13568 - Alvenus Sbipping Co. Ltd.:AlgoL13589 - Multan Maritime S.A.: Duke Albatros.13570.. Mina Co. Ltc. Minarasa.

By the Commission.FRANcIs C. HuRN ,

Secretary.[FR Dc. 78-5294 Filed 2-27-78; 8:45 am]

[6730-01][Independent Ocean Freight Forwarder

License No. 105]

JOSEPH CORTINA

Order of Revocation

The bond issued In favor of JosephCortina, P.O. Box 603, Tampa, Fla.33601, FMC No. 105, was cancelled ef-fective February 21, 1978.

By letter dated January 23, 1978, thelicensee was advised by the FederalMaritime Commission that Indepen-dent Ocean Freight Forwarder LicenseNo. 105 would be automatically re-voked or suspended unless a validsurety bond was filed with the Com-mission on or before February 21,1978.

Section 44(c), Shipping Act, 1916,provides that no independent oceanfreight forwarder license shall remainin force unless a valid bond is in effectand on file with the Commission. Rule510.9 of Federal Maritime CommissionGeneral Order 4, further provides thata license will be automatically revokedor suspended for failure of a licenseeto maintain a valid bond on file.

Joseph Cortina has failed to furnisha valid surety bond.

By virtue of authority vested in meby the Federal Maritime Commissionas set forth in Manual of Orders. Com-mission Order No. 201.1 (Revised) Sec-tion 5.01(d) dated August 8, 1977;

It is ordered. That IndependentOcean Freight Forwarder License No.105 be and is hereby revoked effectiveFebruary 21, 1978.

It is further ordered, That Indepen-dent Ocean Freight Forwarder LicenseNo. 105 issued to Joseph Cortina be re-:turned to the Commission for cancel-lation.

It is further ordered, That a copy ofthis Order be published in the FEDERAL


NOTICES

REGISTER and served upon Joseph Cor-tina.

LERoy F. FuLLER,Director, Bureau of

Certification and Licensing.[FR Doc. 78-5296 Filed 2-28-78; 8:45 am]

(1610-01]GENERAL ACCOUNTING OFFICE

REGULATORY REPORTS REVIEW

Receipt and Approval of a Proposed Report

A request for clearance of a pro-posed report intended for use in col-lecting information from the publicwas received by the Regulatory Re-ports Review Staff, GAO, on February14, 1978. (See 44 U.S.C. 3512 (c) and(d).) The purpose of publishing thisnotice Is to inform the public of suchreceipt and the action taken by GAO.

Civi AERONuTics BoARD

Request for clearance on an emer-gency basis was received from theCAB for a letter to be sent to compa-nies who write charter operator suretybonds. The letter requests informationas to whether claims have been filedagainst individual surety bonds andthe amounts of such claims. The CABneeds this information immediately toinsure that the monies deposited byall passengers signing up for flightsfrom tour operators are adequatelyprotected. Respondents number about60 and reporting burden is estimatedto be two hours per respondent.

The GAO granted clearance of thisrequest on February 22, 1978, undernumber B-180226 (S78007) becauseCAB was able to demonstrate poten-tial public harm if a normal clearancereview period had been used.

NonuaN F. HEYL,Regulatory Reports

Review Officer.(PR Doc. 78-5411 Filed 2-28-78; 8:45 am]

(1610-01]REGULATORY REPORTS REVIEW

Receipt of Report Proposal

The following requests, for clearanceof a report intended for use in collect-ing information from the public wasaccepted by the Regulatory ReportsReview Staff, GAO, on February 22,1978. (See 44 U.S.C. 3512 (c) and (d).)The purpose of publishing this noticein the FEDERAL REGISTER is to informthe public of such acceptance.

The notice includes the title of therequest received; the name of theagency sponoring the proposed collec-tion of information; the agency formnumber, if applicable; and the fre-quency with which the information isproposed to be collected.

Writtei comments on the proposedICC request are invited from all inter-ested persons, organizations, public in-terest groups, and affected businesses.Because of the limited amount of timeGAO has to review the proposed re-quest, comments (in triplicate) mustbe received on or before March 20,1978, and should be addressed to Mr.John M. Lovelady, Assistant Director,Regulatory Reports Review, UnitedStates General Accounting Office,Room 5106, 441 G Street NW., Wash-ington, D.C. 20548.

Further information may be ob-tained from Patsy J. Stuart of theRegulatory Reports Review Staff, 202-275-3532.

INTERSTATE COMIERCE COMMISSION

The clearance of ICC Form BOp-101, Quarterly Report of Under andOver Estimates, expired on September30, 1977. Since the ICC did not requestan extension of clearance for this format that date, the form has been de-leted from the GAO inventory. Ac-cordingly, the Commission fbrm hasno effective clearance as required bythe Federal Reports Act.

The ICC has subsquently requestedreinstatement clearance of Form BOp-101 which is required to be filed byhousehold goods carriers. The ICCstates that there-are no changes to theform. The Quarterly Report of Underand Over Estimates is intended to pro-vide factual data relating to each indi-vidual incorrect estimate to allow eval-uat)on of estimating practices by theCommission, the reporting movers andthe public. Form BOp-101 is requiredto be filed by aU household goods car-riers for only those quarters duringwhich the carrier prepares any esti-mates which are in error in excess of10 percent. If no estimates were pre-pared during a particular quarter or ifall estimates which were preparedwere within 10 percent of the finalactual costs, no report is required. Thereports are mandatory and availablefor public inspection. The ICC esti-mates that reports are received from300-400 carriers each quarter and thatreporting time averages 10 hours perresponse.

NoRmA F. Hzm,Regulatory Reports

Review Officer.[FR Doc. 78-6412 Filed 2-28-78; 8:45 am]

[4110-02]DEPARTMENT OF HEALTH,

EDUCATION, AND WELFARE

Office of Education

EMERGENCY SCHOOL AID ACT

Extension of Closing Date for Receipt ofApplications for Fiscal Year 1978

Under the authority contained inthe Emergency School Aid Act, Title

VII of Pub. L. 92-318, as amended (20U.S.C. 1601-1619). the Cdmmisslonerof Education extends the February 28,1978, closing date for the receipt ofcertain applications under the Act ofMarch 14, 1978. The purpose of theextension is to permit applicants Inareas which have recently experiencedsevere weather conditions more timeto develop applications consistent withrequirements concerning public andadvisory committee participation.However, the extension applies to allapplications invited by the notice ofthe February 28 closing date publishedin the FEDERAL REGISTER on January 4,1978 (43 FR 796). Applicants whichhave already flied applications pursu-ant to that notice will be permitted(but are not required) to review,revise, and refile their applications bythe extended closing date.

The extended closing date applies toapplications from local educationalagencies for the following types of as-sistance: 1. Basic Grants under section706(a) of the Act; 2. Pilot Projectgrants under section 706(b) of the Act;3. Bilingual Project grants under sec-tion 708(c) of the Act; 4. Special Pro-Ject grants under section 708(a) of theAct to assist in implementing nonre-quired plans described In section706(a)(1)(D) of the Act and 45 CFR185.11(b)(4), providing for the enroll-ment of nonresident children.

The extended closing date also ap-plies to applications from other agen-cies and organizations, indicatedbelow, for the following types of assis-tance: ,

1. Grants under section 708(b) of theAct to public or private nonprofit or-ganizations other than local educa-tional agencies; 2. Bilingual Projectgrants under section 708(c) to privatenonprofit organizations; 3. SpecialProject grants under section 708(a) ofthe Act to the central public educationagencies in Puerto Rico, Guam, Ameri-can Samoa, the Virgin Islands and theTrust Territories of the Pacific Is-lands; 4. Special Arts Project grantsunder section 708(a) of the A6t topublic agencies responsible for the ad-ministration of statewide arts pro-grams; 5. Special Mathematics Projectgrants under section 708(a)(3) of theAct to private nonprofit agencies: and6. Special Student Concerns Projectgrants under section 708(a) of the Actto public agencies other than localeducational agencies.

The Assistant Secretary for Educa-tion has determined that awards forSpecial Projects described in thisnotice will make substantial progresstoward meeting the purposes of theAct.

Applications must be prepared andsubmitted in accordance with regula.tions, instructions, and forms includedin the program information packages,

Closing date: March 14, 1978.


8300

NOTICES

- A. Applications sent by mail. An ap-plication sent by mail should be ad-dressed to: U.S. Office of Education,Application Control Center, Washing-ton, D.C. 20202. The address for appli-cations should be marked as follows:Attention: 13.525A (for Basic Grants);Attention: 13.526A (for Pilot Projects);Attention: 13.528A (for Bilingual LEAProjects); Attention: 13.532K (for Spe-cial Projects for section 706(a)(1)(D)plans); Attention: 13.529A (for Non-profit Organization Projects undersection 708(b)); Attention: 13.528B (forBilingual Nonprofit Organization Pro-jects); Attention: 13.532C (for SpecialProjects in jurisdictions other thanStates); Attention: 13.532D (for Spe-cial Arts Projects); Attention: 13.532E(for Special Mathematics Projects);Attention: 13.532F (for Special Stu-dent Concerns Projects). Applicationsmust be received by the ApplicationControl Center on or before the clos-ing date. In an effort to prevent thelate arrival of applications due to un-foreseen circumstances, the Office ofEducation suggests that applicantsconsider the use of registered or certi-fied mail as explained below.

An application sent by mail will beconsidered to be received on time bythe Application Control Center if:

(1) The application was sent by reg-istered or certified mail not later thanMarch 9, 1978, as evidenced by theU.S.-Postal Service postmark on thewrapper or envelope, or on the origi-nal receipt from the U.S. Postal Ser-vice; or

(2) The apilication is received on orbefore the closing date by either theDepartment of Health, Education, andWelfare or the U.S. Office of Educa-tion mail rooms in Washington, D.C.In establishing the date of receipt, theCommissioner will rely on the time--date stamp of these mail rooms orother documentary evidence of receiptmaintained by the Department ofHealth, Education, and Welfare or theU.S. Office of Education.

B. Hand-delivered applications. Anapplication to be hand-delivered mustbe taken to the U.S. Office of Educa-tion, Application Control Center,Room 5673, Regional Office BuildingThree, 7th and D Streets SW., Wash-ington, D.C. Hand-delivered applica-tions will be accepted daily betweenthe hours of 8 am. and 4 p.m., Wash-ington, D.C., time, except Saturdays,Sundays, -and Federal holidays. Appli-cations will not be accepted after 4pm . on the closing date.

C. Program information. Theamount of funds available for eachtype will be established after, enact-ment of appropriation legislation.

In fiscal year 1977, funds were ex-pended as follows: (a) 430 BasicGrants, in an average amount of$307,580;

(b) 162 Pilot Project grants, in anaverage amount of $198,462;

(c) 24 Bilingual Projects grants tolocal educational agencies, in an aver-age amount of $338,520;

(d) 4 Special Project grants to sup-port nonrequired plans described insection 706(a)(1)(D) of the Act, in anaverage amount of $378,144;

(e) 205 grants to nonprofit agencies,in an average amount of $83,881;

(f) 5 Special Project grants to publicagencies in Jdrisdictions other thanStates, in an average amount of$560,000;

(g) 15 Special Arts Project grants, inan average amount of $99,747;

(h) 1 Special Mathematics Projectgrant, in the amount of $750,000; and

(1) 7 Special Student Concerns Pro-ject grants, in an average amount of$205,403.

D. Project periods. Grants made pur-suant to this notice will be for projectsstarting no earlier than July 1, 1978,and ending no later than September30, 1979, but in no case for more thana 12-month period.

E. For further information andforms contact: Division of ProgramOperations, Equal Educational Oppor-tunity Program, U.S. Office of Educa-tion, 400 Maryland Avenue SW.. Room2007A. Washington, D.C. 20202; 202-245-7965.

F. Applicable regulations. Grantawards made pursuant to this noticewill be subject to the following regula-tions: (1) Regulations relating only toassistance under the EmergencySchool Aid Act (45 CPR Part 185), and(2) The Office of Education generalprovisions regulations (45 CFR Parts100 100a and appendixes) except tothe extent that these regulations areinconsistent with 45 CFR Part 185.

(20 U.S.C. 1601-1619.)(Catalog of Federal Domestic AssistanceNumber 13.525, Basic Grants; 13.526. PilotProjects; 13.528, Bilingual Projects; 13.529.Public and Nonprofit Private OrganizatLionGrants; 13.532. Special Projects-EmergencySchool Aid.)


EiurT L. BOyEm,U.S. Commissioner

of Education.[FR Doc. 78-5514 Filed 2-28-78; 8:45 am]

[4210-01]

DEPARTMENT OF HOUSING ANDURBAN DEVELOPMENT

Office of the Secretary[Docket No. N-78-846]

REPORT DEVELOPMENT OF ENERGY PERFOR-MANCE STANDARDS FOR NEW CONSTRUC-TION

Public Meeting

AGENCY: Department of Housingand Urban Development.

ACTION: Public Meeting.SUMMARY: The purpose of the meet-Ing Is to Inform the public about thefirst phase of the program to developenergy performance standards for newconstruction. It will be held on Thurs-day, March 16, 1978, at 9:30 am. in theDepartment of Commerce Auditorium,Main Entrance on 14th Street, Wash-ington, D.C. 20230. HUD s conductinga three-phase program in conformancewith Title III of Pub. L. 94-385, theEnergy Conservation Standards forNew Buildings Act of 1976. Theagenda will include a report on the ac-tivities carried out to establish a base-line or reference on how much energynonresidential and residential build-ings are currently designed to use.Topics presented will include:

1. Development of Building and ClimateClamification Systems

2. Sample Selections3. Data Collection and Analysis4. Findings

An overview of the second phase ofthe program will also be presented. Allinterested parties are invited toattend. A period will be set aside forquestions and comments.


Mary Ann Elchenberger, 202-755-6230.


DONNA E. SHALALA.AssistantSecretary for Policy

Development and Research.[FR Doc. 718-5303 Fled 2-28-48; 8:45 am]

[4310-55]

bEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

THREATENED SPECIES PERMIT

Notice of Receipt of Application

Applicant W. E. Arrington, Inc.,P.O. Box 881, Idaho Falls, Idaho83401.

This application is a correction toone that appeared in FR Doe. 78-3009,filed February 2, 1978, 8:45 am. Theapplicant wishes to apply for a CaptiveSelf-Sustaining Population permit au-thorizing the purchase and sale forpropagation, tigers (Panthera tigris),leopards (Panthera pardus), and jag-uars (Panthera onca) listed in 50 CFRSection 17.11 as T(C/P). Humane ship-ment and care in transit Is assured.

Documents and other informationsubmitted with this application areavailable to the public during normalbusiness hours in Room 534, 1717 HStreet NW., Washington, D.C., or bywriting to the Director, U.S. Fish andWildlife Service (WFO), Washington,D.C. 20240.


"8301

NOTICES

This application has been assignedfile number PRT 2-1816. Interestedpersons may comment on this applica-tion by submitting written data, views,or arguments to the Director at theabove address within 30 days of thedate of this publication. Please referto the file number when submittingcomments.


DONALD G. DoNAHoo,Chief, Permit Branch,

Federal Wildlife Permit Office.[FR Doc. 78-5324 Filed 2-28-78; 8:45 am]

[4310-55]


Notice of Recaipt of Application

Applicant: Raymond Louis Holmes,Route 2, Box 29 GC, Tahlequah, Okla.74464.

The applicant wishes to apply for aCaptive Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, those species ofpheasants listed in 50 CFR Section17.11 as T(C/P). Humane shipmentand care in transit is assured.

Documents and other informationsubmitted with this application areavailable to the public during normalbusiness hours in Room 534, 1717 HStreet NW., Washington, D.C., or bywriting to the Director, U.S. Fish andWildlife Service (WPO), Washington,D.C. 20240.


Dated: February 24, 1978.Dori=L G. DoNAHoo,

Chief, Permit Branch,Federal Wildlife Permit Office.

[FR Doc. 78-5325 Filed 2-28-78; 8:45 am]

[4310-55]



Applicant: M. L. Hutto, 124 MacCircle, Lexington, S.C. 29072.

The applicant wishes to apply for aCaptive Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, those species ofpheasants listed in 50 CFR Section17.11 as T(C/P). Humane shipmentand care in transit is assured.

Documents and other informationsubmitted with this application areavailable to the public during normalbusiness hours in Room 534, 1717 H

Street NW., Washington, D.C., or bywriting to the Director, U.S. Fish andWildlife Service (WPO), Washington,D.C. 20240.



DONALD G. DoNAHoo,Chief, Permit Branch,

Federal Wildlife Permit Office.F R Doc. 78-5326 Filed 2-28-78; 8:45 am]

[4310-55)



Applicant: Kings Island, P.O. Box400, Kings Mills, Ohio 45034.

The applicant wishes to apply for aCaptive Self-Sustaining Populationpermit authorizing the purchase andsale in interstate commerce for propa-gation, those species of tigers (Panth-era tigris) listed in 50 CFR Section17.11 as T(C/P). Humane shipmentand care in transit is assured.



Dated: February 24, 1978.DoNALD G. DoNAHoo,

Chief, Permit Branch,Federal Wildlife Permit Office

[FR Doc. 78-5327 Filed 2-28-78; 8:45 am]

[4310255]THREATENED SPECIES PERMIT


Applicant:,St. Louis Zoological Park,Forest Park, St. Louis, Mo. 63110.

The applicant wishes to apply for aCaptive Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, those species ofanimals listed in 50 CFR Section 17.11as T(C/P). Humane shipment and carein transit is assured.



Dated: February 24, 1978.DONALD G. DoNAHoo,


[FR Doc. 78-5328 Piled 2-28-78; 8:45 am]

[4310-55]THREATENED SPECIES PERMIT

Notice of Receipt of ApplicationApplicant: Seneca Park Zoo, 2222 St.

Paul Street, Rochester, N.Y. 14621.The applicant wishes to apply for a

Captive Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, tigers (Pantheratigris), Mikado pheasants (Syrmatlcusmikado), and Swinhoe's pheasant (Lo-phura swinhoii) listed in 50 CFR Sec-tion 17.11 as T(C/P). Humane ship-ment and care in transit is assured.

Documents and other Informationsubmitted with this application areavailable to the public during normalbusiness hours in Room 534, 1717 HStreet NW., Washington, D.C., or bywriting to the Director, U.S. Fish andWildlife Service (WPO), Washington,D.C. 20240.

This application has been assignedfile number PRT 2-1896. Interestedpersons may comment on this applica-tion by submitting written data, views,or arguments to the Director at theabove address within 30 days of thedate of this publication. Please referto the file number when submittingcomments,

Dated: February 24, 1978.DONALD G. DONAHOO,


(FR Doc. 78-5329 Filed 2-28-78: 8:45 am]

[4310-55]



Applicant: Richard M. Sewell, 223Dunes Road, North Bend, Oreg. 97459.

The applicant wishes to apply for aCaptive Self.Sustaining Population


NOTICES

permit authorizing the purchase andsale in interstate commerce for propa-gation, those species of pheasantslisted in 50 CFR Section 17.11 as T (C/P). Humane shipment .and care intransit is assured.



Dated: February 24, 1978.DONALD G. DONAHOO,


[FR Doe. 73-5330 Filed 2-28-78; 8:45 am]

[4310-55]



Applicant: Charles L Taylor, R.R.No. 2, Box No. 37, Delphi, Ind. 46923.

The applicant wishes to apply for aCaptive- Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, those species ofpheasants listed in 50 CFR Section17.11 as T(CIP). Humane shipmentand care in transit is assured.


This application has been assignedfile number PRT 2-1895. Interestedpersons may comment on this applica-tion by submitting written data, views,or arguments to the Director at theabove address within 30 days of thedate of this publication. Please referto the file number when submittingcomnients.


DONALD G. DONAHOO,Chief, Permit Branch,

Federal Wildlife Permit Office

-[FR Doc. 78-5331 Filed 2-28-78; 8:45 am]

[4310-55]THREATENED SPECIES PERMIT


Applicant: Toledo Zoological Gar-dens, 2700 Broadway, Toledo, Ohio43609.

The applicant wishes to apply for aCaptive Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, those species offelines listed in 50 CFR Section 17.11as T(C/P). Humane shipment and carein transit is assured.

Documents and other Informationsubmitted with this application areavailable to the public during normalbusiness hours in Room 534, 1717 HStreet NW., Washington, D.C., or bywriting to the Director, U.S. Fish andWildlife Service (WPO), Washington,D.C. 20240.

This application has been assignedfile number PRT 2-2183. Interestedpersons may comment on this applica-tion by submitting written data, views,or arguments, to the Director at theabove address within 30 days of thedate of this publication. Please referto the file number when submittingcomments.

Dated February 24, 1978.DoNALD G. DoNAHoo.

Chief, PermitBranch,Federal Wildlife Permit Office.

(FR Doe. 78-5332 Filed 2-28-78; 8:45 am]

[4310-55]



Applicant: Sven F. Walther, Rt. 1,Box 283, Cornelius, Oreg. 97113.

The applicant wishes to apply for aCaptive Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, those species ofpheasants listed in 50 CFR Section17.11 as T(C/P). Humane shipmentand care in transit is assured.-Documents and other information

submitted with this application areavailable to the public during normalbusiness hours in Room 534. 1717 HStreet NW., Washington, D.C., or bywriting to the Director, U.S. Fish andWildlife Service (WPO), Washington,D.C. 20240.


830:

Dated: February 24, 1978.DoNAD 0. DoAHoo,


[FR Doc. 78-5333 Filed 2-23-78; 8:45 am]

[4310-55]


3

*1Notice of Receipt of Application

Applicant: Washington Park Zoolo-gical Gardens, Lake Front, MichiganCity, Ind. 46350.

The applicant wishes to apply for aCaptive Self-Sustaining Populationpermit authorizing the purchase andsale for propagation, Bengal tigers(Panthera tigris), leopards (PantheraPardus), and Jaguars (Panthera onca)listed In 50 CFR Section 17.11 as T(C/P). Humane shipment and care intransit is assured.

Documents and other informationsubmitted with this application areavailable to the public during normalbusiness hours in Room 534, 1717 HStreet NW., Washington, D.C., or bywriting to the Director, US. Fish andWildlife Service (WPO), Washington,D.C. 20240.

This application has been assignedfile number PRT 2-1891. Interestedpersons mag comment on this applica-tion by submitting written data, views,or arguments to the Director at theabove address within 30 days of thedate of this publication. Please referto the file number when submittingcomments.


DoNALD G. DoNAHoo, jChief, PermitBranch,

Federal Wildlife Permit Office.(FR Dc. 78-5334 Filed 2-23-78; 8:45 am]

[4310-84] 4Office of the Secretory

ESTABLISHMENT OF GRAZING FEES FOR 1978

Revised Scheduie

The Department of the Interior haspublished proposed regulations on fees(43 FR 60109) with a 90-day publiccomment period ending on February21, 1978. The proposed regulationswould establish a revised fee schedulebased upon results of a 1977 fee study.As recommended to the Congress, pro-posed fees in 1978 would be less thanunder existing regulations, but higherthan 1977 fees.

Establishment of Grazing Fees for1978. The grazing fee year extendsfrom March 1 through the last day inFebruary of the following year. Graz-ing fee billings and authorizations arenormally Issued prior to the permit-tee's first grazing period in the newfee year. Because the comment period


NOTICES

on the proposed grazing fee rulemak-ing extended to Feb. 21,-1978, a deter-mination of 1978 grazing fees byMarch 1, 1978, will not allow adequatetime to fully evaluate public com-ments on the proposed rulemaking.This notice providing for the continu-ation of the 1977 grazing fee until theestablishment of 1978 grazing fee isnecessary to allow full evaluation ofthe comments received. During this in-terim period, preliminary bills will beissued at the 1977 fee rate to avoiddelay or inconvenience to the grazingpermittee.

This notice shall not be construed toimply or mean that any fee increaseover the 1977 rate will not be collectedfor the utilization of livestock foragefor the fee year starting March 1,1978.

Effective Date. This notice is effec-tive March 1, 1978. and shall remain ineffect until cancelled by the issuanceof the final rulemaking on 1978 graz-Ing fees.


GARY J. WICKS,Deputy Assistant

Secretary of the Interior.[FR Doe. 78-5588 Flied 2-28-78; 8:45 am]

[7020-021

INTERNATIONAL TRADECOMMISSION

[Investigation No. 337-TA-48]

ALTERNATING PRESSURE PADS

Order regarding Investigation

Pursuant. to my authority as ChiefAdministrative Law Judge of this com-mission, I hereby designate Adminis-trative Law Judge Donald K. Duvall asPresiding Officer in this investigation.

The Secretary shall serve a copy ofthis order upon all parties of recordand shall publish it in the FEDERALREGISTER.

Issued February 23, 1978.MYRON R. RENICK,

ChiefAdministrative Law Judge.CFR Dc. 78-5419 Filed 2-28-78; 8:45 am]

[7020-02]


CERTAIN WELDED STAINLESS STEEL PIPE ANDTUBE

Commission Determination and Actior

The United States InternationalTrade Commission ("Commission")having instituted an investigation pur-suant to Its Notice of Investigationissued on February 16, 1977;

And, having heard this matter in ac-cordance with the provisions of 19U.S.C. 1337 (section 337) and 5 U.S.C.551-559;

Has determined, That there is inthis investigation a violation of section337 by reason of the importation orsale or both (as the case may be) bypersons named in this order of certainwelded stainless steel pipe and tube atprices lower than the average variablecost of production of said productwithout commercial justification; thatan order directing these persons tocease and desist from this practiceshould be issued in lieu of a directionunder section 337(d) that the articlesconcerned be excluded from entry intothe United States; that such order hasnone of the effects listed under section337(f) such that the order should notbe issued; and that during the periodof Presidential consideration of thisorder under section 337(g), the articlesconcerned shall be entitled to entryfree of bond.

Therefore, the Commission herebyissues the following order as its actionin this matter:

ORDER To CEASE AND DESIST

L DEFINITIONS

-The terms in quotations below shallbe defined as shown for purposes of in-terpreting this order:

"Respondents" refer to all respon-dents listed below, their successorsand assigns:

Ataka & Co., Ltd.Brasimet Industries Corp.Hanwa Co., Ltd.Kanematsu-Gosho, Ltd.Marubeni Corp.Nissho-Iwai Co., Ltd.Okura Trading Co., Ltd.Sumitomo Shoji America, Inc.Sumitomo Shoji Kaisha, Ltd.Tea Setki Co., Ltd.Toyo Menka Kaisha, Ltd.

"Commission" refers to the UnitedStates International Trade Commis-sion.

"Stainless steel" refers to any alloysteel which contains less than one per-cent of carbon and a mimimum of tenpercent of chromium.

"Welded stainless steel pipe andtube" refers to all welded tubularproducts made from stainless steelhaving a circular cross-sectional con-figuration with an actual outside di-ameter from .0375 to 6.525 inches in-clusive.

"Marginal cost" is the increment tototal cost that resuIt% from producingan additional increment of output.

"Average variable cost of produc-tion" is the sum of all costs that varywith changes in output divided byoutput, and includes, but is not limitedto the cost of all raw materials andenergy plus direct labo,.

'Vice Chairman Joseph 0. Parker andCommissioner Catherine Bedell dissentingas to the determination of violation of sec-tion 337 and are not participating in the is-suance of the subject order.

"Commercial justification" shall bea reason for pricing other than as pro-scribed In this order, which reason in-dicates, by virtue of commercial con-text, that such pricing was not intend-ed to injure competition in the UnitedStates in welded stainless steel pipeand tube.

"United States" refers to the fiftystates, the District of Columbia andPuerto Rico.

"Manufacturer" refers to any com-pany which produces welded stainlesssteel pipe or tube.

"Exporter" refers to any companywhich sells welded stainless steel pipeor tube for export to customers locat-ed in the United States.

"Importer" refers to any companywhich imports welded stainless steelpipe or tube into the United States.

I. CONDUCT PROHIBITED

No respondent manufacturer shallsell for export to the United States,without commercial Justification, anywelded stainless steel pipe and tubemanufactured in Japan at a price thatis below the reasonably anticipatedmarginal cost. In determining whethercosts are "reasonably anticipated," theCommission will assume that pricesabove average variable cost, as calcu-lated by methods that are reasonablyconsistent for each respondent manu-facturer from year to year, are abovereasonably anticipated marginal cost.

No respondent exporter or importershall sell or offer for sale in theUnited States, without commercialjustification, welded stainless steelpipe and tube manufactured in Japanat a price that Is below the reasonablyanticipated marginal cost of the manu-facturer plus incidental costs of saidrespondent exporter or importer. Indetermining whether a respondent ex-porter and Importer has complied withthis Order, the Commission willImpute knowledge of suppliers' coststo respondent exporters and Importer,which may be rebutted by the suppli-ers' affidavit under oath that (1) It willnot supply Its costs to the respondentexporters or importer, and (2) Its pricein the transaction in question is notless than the original manufacturer'sreasonably anticipated marginal cost.

This order is applicable to any andall importations made after the datethis order Is published in the FEDERALREGISTER, regardless of terms of sale,date of contract, etc.

III. REPORTING

Respondent manufacturers, export-ers, and importers shall file with theCommission information sufficient inform and detail that the Commissioncan determine whether there Is com-pliance with this Order. The first suchreport shall be due 120 days after thedate this order becomes final. Subse-quent reports shall be filed annually


8304

NOTICES

by each respondent beginning for eachof them with a second report on a datenot later than two months after theend of each respondents' fiscal year. Aform for all reports required by thisparagraph will be timely provided bythe Commission. Respondent manu-facturers and exporters who are nolonger engaged in the manufacture orsale of welded stainless steel pipe andtube for export to customers in theUnited States may file a certificateunder oath to that effect in lieu of thereports required by this paragraph.

Failure to report shall constitute aviolation of this order.

IV. COMPLIANCE.AND INSPECTION

For -each year as to which (or as toany part of which) a report is re-quired, each respondent manufacturershall maintain business and account-ing records on a basis consistent fromyear to year such that prices and allcosts of producing welded stainlesssteel pipe and tube in Japan may bedetermined by examining these re-cords. Such records shall also be ade-quate for determining each respon-dent manufacturer's total productionfor export from Japan to the UnitedStates of welded stainless steel pipeand tube manufactured by said re-spondent in Japan. All respondentsshall maintain such records adequateto show each respondent's profits andlosses by fiscal year for their oper-ations relating to welded stainlesssteel pipe and tube manufactured inJapan for export to the United States.Such records shall be retained by eachrespondent for a period of at leastthree years after each required reportis due.

v

Each respondent, upon written' re-quest by the Commission mailed to itsprincipal office, shall furnish or other-wise make available to the Comnis-sion all books, ledgers, accounts, corre-spondence, memoranda, financial re-ports, and other records and docu-ments in the possession or under thecontrol of each respondent for thepurposes of verifying any matter con-tained in the reports required- underparagraph IV of this Order. The Com-mission may exercise, in the enforce-ment of this order, any of the infor-mation-gathering powers available toit under section 333 of the Tariff Actof 1930, 19 U.S.C. 1333.

VI

Information obtained by the meansprovided in paragraphs III and Vabove shall only be made available tothe Commission or its representatives,.shall be entitled to confidential treat-ment, and shall not be divulged by anyrepresentative of the Commission toany person other than a duly autho-

rized representative of the Commis-sion, except as required in the courseof legal proceedings to which the Com-mission is a party for the purpose ofsecuring compliance with this Orderor as otherwise required by law, uponten days notice to the respondent in-volved.

viI

Any violation of this Order shallallow action by the Commission In ac-cordance with the provisions of section337(f) (19 U.S.C. 1337(f)), includingthe revocation of this Order and theexclusion of the articles concernedfrom entry Into the United States.Violation of this Order may also bethe subject of action pursuant to sec-tion 333 of the Tariff Act of 1930 (19U.S.C. 1333). In determining whetherany respondent Is in violation of thisOrder, the Commission may Infer factsadverse to any respondent failing toprovide adequate or timelyInforma-tion.

VIII. BONDING

The Secretary of the Treasury shallnot require bond during the period ofPresidential consideration of thisaction pursuant to section 337(g) ofthe Tariff Act of 1930, as amended (19U.S.C. 1337(g)).

IX. TERM

This order shall expire, unless earli-er modified or revoked by the Commis-sion, on December 31, 1982.

X. PUBLICATION

The Secretary will publish a copy ofthis "Commlssion'Determination andAction" in the FEDuaAL REGISTER; servea copy upon all parties, and transmit acopy thereof, together with the recordof this proceeding, to the President.The Secretary will also inform theSecretary of the Treasury of the Com-mission's determination on bonding,

Xr. DISMISSALS

No person not specifically named inthis order is subject to this order, andas to any such person, previously aparty to this investigation, this hlvesti-gation is hereby terminated.

Issued: February 22, 1978.By order of the Secretary.

KNNETI R. lAsON,Secretary.

[FR Doc. 78-5305 Filed 2-28-78; 8:45 am]

[7020-02]

[Investigation No. 337-TA-453

CERTAIN COMBINATION LOCKS

Order Regarding Investigation

Pursuant to my authority as ChiefAdministrative Law Judge of this

Commission, I hereby designate Ad-ministrative Law Judge Donald K.Duvall as Presiding Officer in this in-vestigatlon.

The Secretary shall serve a copy ofthis order upon all parties of recordand shall publish It in the FEDERALRErSTR.

Issued February 23, 1978.

Mox R. REicx,ChiefAdministrative Law Judge.

CFR Doc. 78-5417 Filed 2-28-78; 8:45 am)

[7020-02]

(Investigation No. 337-TA-471

CERTAIN FLEXIBLE FOAM SANDALS


Pursuant to my authority as ChiefAdministrative Law Judge of thisCommission, I hereby designate Ad-ministrative Law Judge Donald K.Duvall as Presiding Officer in this in-vestigation.

The Secretary shall serve a copy ofthis order upon all parties of recordand shall publish it In the FEDERALREGISTER.


Mmox R. RENucwChief Administrative Law Judge

[FR Doe. 78-5415 Filed 2-28-78; 8:45 aml

[7020-02]

(Investigation No. 337-TA-381

CERTAIN FOOD SLICERSOrder Regarding Investigation

Pursuant to my authority as ChiefAdministrative Law Judge of thisCommission, I hereby designate Ad-ministrative Law Judge Donald K.Duvall as Presiding Officer is this in-vestigation.

The Secretary shall serve a copy ofthis order upon all parties of recordand shall publish It in the FEDEAREGISTER.

Issued: February 23, 1978.MYRox R. REN-icx,

ChiefAdministratire Law Judge.FR Doc. 78-5416 Filed 2-28-78;8:45 am]

[7020-02]

(Investlgation No. 337-TA-461

CERTAIN TELESCOPIC SIGHT MOUNTS


Pursuant to my authority as ChiefAdministrative Law Judge of thisCommission, I hereby designate Ad-ministrative Law Judge Donald K.Duvall as Presiding Officer in this in-vestigation.


8305

NOTICES

The Secretary shall serve a copy o:this order upon all parties of recorcand shall publish it in the FEDERAlREGISTER.


MYRON R. RENICK,ChiefAdministrative Law Judge.

[FR Doec. 78-5418 Filed 2-28-78; 8:45 am]

[7020-02]


DOXYCYCL.NEOrder Regarding Investigation

Pursuant to my authority as ChieJAdministrative Law Judge of thLCommission, I hereby designate Administrative Law Judge Donald DDuvall as Presiding Officer in this investigation.

The Secretary shall serve a copy oJthis order upon all parties of recorcand shall publish it in the FEDmusREGISTER.


MYRON R. RENIcK,ChiefAdministrative Law Judge.

[FR Doec. 78-5414 Filed 2-28-78; 8:45 am]

[7020-02]

[303-TA-2]

LEATHER WEARING APPAREL FROMURUGUAY

Place of Public Hearing

Notice is hereby given that thepublic hearing in this matter sched.uled to begin at 9:30 a.m., e.s.t., onTuesday, March 14, 1978, in New YorkCity, will be held in the auditorium ofthe United States Mission to theUnited Nations, 799 U.N. Plaza, 45thStreet and First Avenue, New York,N.Y. (please use 45th Street entrance).Requests for appearance should befiled with the Secretary of the UnitedStates International Trade Commission, in writing, at his office in Wash.ington, D.C., not later than noon,Thursday, March 9, 1978.

Notice of the investigation and hear.ing was published in the FEmRL REG-ISTER of February 9, 1978 (43 FR5593).

-Issued: February 23, 1978.

By order of the Commission.

KENNETH R. MASON,Secretary.

[FR Doc. 78-5413 Filed 2-28-78; 8:45 am]

f [7020-02][AA1921-Inq.-10]

UNCOATED FREE SHEET OFFSET PAPER FROM

CANADA

Inquiry and Hearing

The U.S. International Trade Com-mission (Commission) received advicefrom-the Department of the Treasury(Treasury) on February 17, 1978, that,during the course of determiningwhether to institute an investigationwith respect to chemical-wood-pulpbased offset printing paper, containingless than 5 percent by weight me-chanical wood pulp, whether or notcut to size or shape, not impregnated,not coated, not surface-colored, notembossed, not ruled, not lined, notprinted, and not decorated fromCanada in accordance with section201(c) of the Antidumping Act of 1921,as amended (19 U.S.C. 160(c)), Trea-sury had.concluded from the informa-tion available to it that there is sub-stantial doubt that an industry in theUnited States is being or is likely to beinjured, or is prevented from being es-tablished, by reason of the importa-tion of this merchandise into theUnited States. Therefore, the Commis-sion on February 23, 1978, institutedinquiry AA1921-Inq.-10, under section201(c)(2) of that act, to determinewhether there is no reasonable indica-tion that an industry in the UnitedStates is being or is likely to be in-jured, or is prevnted from being estab-lished, by reason of the importation ofsuch merchandise into the UnitedStates.

The Treasury advised the Commis-sion as follows:

DEAR MR. CHsAiRuA: In accordance withsection 201(c) of the Antidumping Act of

- 1921, as amended, an antidumping investiga-tion is being initiated with respect to offsetpaper from Canada. Pursuant to section201(c)(2) of the Act, you are hereby advisedthat the information developed in our pre-liminary investigation has led to the conclu-sion that there is substantial doubt that anindustry in the United States is being, or islikely to be, injured or is prevented frombeing established by reason.of the importa-tion of this merchandise into the United

* States.* Information available to Treasury Indi-

cates that imports of offset paper fromCanada hold a small percentage of the U.S.market, with no significant recent expan-sion. For 1974, 1975, 1976, and the first 10

* months of 1977, Canadian imports' marketshare, was, respectively, 2.1 percent, 1.7 per-cent, 2.0 percent, and 2.1 percent. Duringthe same period the market share for do-mestic producers was 86.1 percent, 90.7 per-cent, 89.7 percent, and 89.0 percent. Canadi-an imports have merely recovered the slightdecrease in market share experiencedduring the 1975 recession. There has beenno significant effect on the U.S. domesticproducers.

The paper industry, domestic and imports,experienced sharp drops in productionduring 1975, but the industry rebounded in

1976 and surpassed 1974 figures during thefirst 10 months of 1977. Data supplied bypetitioner regarding profitability and capac-ity utilization tracks the pattern of declinefollowed by rebound evidenced by the rawproduction data. Capital Investment by do.mestic producers provides no Indication ofinjury and petitioner's scanty, selective dataon unemployment provides Insufficient evi.dence of Injury. For these reasons, Treasuryhas concluded there Is substantial doubt asto whether an industry In the United Statesis being, or Is likely to be, Injured.

Pursuant to the applicable provisions oflaw, It is requested that the Conunisslonadvise the Department as to whether It de.termines there Is no reasonable Indicationthat an industry in the United States Isbeing, or Is likely to be, injured or is pre-vented from being established by possibleless-than-fair-value Imports of offset paperfrom Canada under TSUSA Item numbers252.67 and 256.30.

For purposes of this investigation, as rec-ommended by your Office of Nomenclature,"offset paper" means chemical-wood-pulpbased offset printing paper, containing lessthan 5 -percent-by weight mechanical woodpulp, whether or not cut to size or shape,not impregnated, not coated, not surface.colored, not embossed, not ruled, not lined,not printed, and not decorated, provided forIn the above-referred TSUSA item numbers.

Based on data submitted by petitioner,margins of sales at less than fair valueappear to range from 3 to 16 percent on Im.ports of subject merchandise from Canada,

Some of the enclosed data is regarded byTreasury to be of a confidential nature, It Istherefore requested that the Commissionconsider all the enclosed Information to befor the official use of the ITC only, not tobe disclosed to'others without prior clear.ance from the Treasury Department.

Sincerely yours,ROBERT H. MUND1EIM,

Hearing. A public hearing in connec-tion with the inquiry will be held onMonday, March 13, 1978, beginning at9:30 a.m., e.s.t., in the auditorium ofthe U.S. Mission to the United Na-tions, 799 U.N. Plaza, 45th Street andFirst Avenue, New York, N.Y. (pleaseuse 45th Street entrance). All partieswill be given an opportunity to be pre-sent, to produce evidence, and to beheard at such hearing. Requests toappear at the public hearing should be-received in writing In the office of theSecretary to the Commission not laterthan noon Wednesday, March 8, 1978,

Written statements. Interested par-ties may submit statements in writingin lieu of, and in addition to, appear-ance at the public hearing. A signedoriginal and 19 true copies of suchstatements should be submitted. To beassured of their being given due con-sideration by the Commission, suchstatements should be received no laterthan Monday, March 13, 1978.


By order of the Commission.

KENNETH R. MAsoN,Secretary.

[FR Doec. 78-5306 Filed 2-28-78; 8:45 am]


8306 "

NOTICES

[1505-01]DEPARTMENT OF JUSTICE

Drug Enforcement Administration

[Docket No. 77-19]

PHENMETRAZINE QUOTAS-1977

Correction

In FR Doc. 78-3959 appearing atpage 6169-76 in the FEDERAL REGISTERof Monday, February 13, 1978 and cor-rected at page 7488 in the FEDERALREGISTER of Thursday, February 23,1978, the following changes should bemade in the issue of February 23, 1978on page 7488:

1. In correction econd line, the word"work" should read "word".

2. In correction 4, third line, theword "work" should read "word".

3. In correction 5, in the table underthe paragraph numbered 77, thenumber "2,477 under "NPA" shouldread "2,466.

[6820-35]

LEGAL SERVICES CORPORATION

GRANTS AND CONTRACTS

FERUAY 22, 1978.The Legal Services Corporation was

established pursuant to the Legal Ser-vices Corporation Act of 1974, Pub. L.93-355, 88 Stat. 378, 42 U.S.C. 2996-2996, as amended. Pub. L. 95-222 (De-cember 28, 1977). Section 1007(f) pro-vides: "At least 30 days prior to the ap-proval of any grant application orprior to entering into a contract orprior to the initiation of any otherproject, the Corporation shall an.nounce publicly * * * such grant, con-tract or project."

The Legal Services Corporationhereby announces publicly that it isconsidering the grant applications sub-mitted by.

1. Inland Counties Legal Services in River-side, California to serve the migrant farm-'workers in the Coachella Valley.

2. Legal Aid Association of VenturaCounty in Oxnard, California to serve themigrant farmworkers in Ventura and South-em Santa Barbara counties.

3. California Rural Legal Services In SanFrancisco, California to serve the migrantfdarmworkers in the Salinas and ImperialValleys and also the migrant population inthe areas now served by CRLA's Delano andMadera ofices.

Interested persons are hereby invit-ed to submit written comments or rec-ommendations concerning the aboveapplications to the Regional Office ofthe Legal Services Corporation at:Legal Services Corporation, San FrancLico

Regional Office, 690 Market Street, San- Francisco, Calif. 94104.

THOMAS Enuacin,President

[FR Doc. 78-5300 Filed 2-28-78; 8:45 am]

[6820-35]


FEBRUARY 22, 1978.The Legal Services Corporation was

established pursuant to the Legal Ser-vices Corporation Act of 1974, Pub. L.93-355, 88 Stat. 378, 42 U.S.C. 2996-29961, as amended, Pub. 1. 95-222 (De-cember 28, 1977). Section 1007(f) pro-vides: "At least 30 days prior to the ap-proval of any grant application orprior to entering into a contract orprior to the initiation of any otherproject, the Corporation shall an-nounce publicly * such grant, con-tract or project."

The Legal Service Corporationhereby announces publicly that it isconsidering the grant application sub-mitted by:.

Southern Arizona Legal Services inTucson, Arizona to serve Santa Cruz andCochse counties.

Interested persons are hereby invit-ed to submit written comments or rec-onmendations concerning the aboveapplication to the Regional Office ofthe Legal Services Corporation at:Legal Services Corporation. Denver Region-

al Office, 1726 Champa Street, Suite 500,Denver, Colo. 80202.

THoMAs EHRLicn,President.

[FR Doc. 78-5301 Filed 2-28-78; 8:45 am]

[6820-35]


FEBRUARY 23, 1978.The Legal Services Corporation was

established pursuant to the Legal Ser-vices Corporation Act of 1974, Pub. L.93-355, 88 Stat. 378, 42 U.S.C. 2996-29964 as amended, Pub. L. 95-222 (De-cember 28, 1977). Section 1007(f) pro-vides: "At least 30 days prior to the ap-proval of any grant application orprior to entering into a contract orprior to the initiation of any otherproject, the Corporation shall an-nounce publicly such grant, con-tract or project"

The Legal Services Corporationhereby announces publicly that it isconsidering the grant applications sub-mitted by:.

Central Minnesota Legal Services in Min-neapolis, Minnesota to serve Meeker county.

Southern Minnesota Regional Legal Ser-vices in St. Paul. Minnesota to serve Fill.more and Houston counties.

Legal Aid Service of Northeast Minnesotain Duluth, Minnesota to serve Koochichlngcounties.

Interested persons are hereby invit-ed to submit written comments or rec-ommendations concerning the aboveapplications to the Regional Office ofthe Legal Services Corporation at:

Legal Services Corporation. Chicago Re-gional Office. 310 South MichiganAvenue 24th Floor. Chicago, Ill

THo fAs EHRLIcE,President.

FR Doc. 78-5302 Filed 2-27-78; 8:45 am]

[6820-35]


FERuARY 23, 1978.The Legal Services Corporation was

established pursuant to the Legal Ser-vices Corporation Act of 1974, Pub. L.93-355, 88 Stat. 378, 42 U.S.C. 2996-29961, as amended, Pub. L. 95-222 (De-cember 28, 1977). Section 1007(f) pro-vides: "At least 30 days prior to the ap-proval of any grant application orprior to entering into a contract orprior to the initiation of any otherproJect4 the Corporation shall an-nounce publicly * * such grant, con-tract or project."

The Legal Services Corporationhereby announces publicly that it isconsidering the grant applications sub-mitted by:

East Mississippi Legal Services In Merld-Ian, Mbatsippl to serve Scott and Lauder-dale counties.

Interested persons are hereby invit-ed to submit written comments or rec-ommendations concerning the aboveapplication to the Regional Office ofthe Legal Services Corporation at:

Legal Services Corporation, Atlanta Region-al Office, 615 Peachtree Street NF., 9thFloor, Atlanta, Ga. 30308.

THomAs EHELcH,President

(FR Doc. 78-5303 Filed 2-28-78; 8:45 am]

[7590-01]

NUCLEAR REGULATORYCOMMISSION

[Docket No. 50-466]

ALLENS CREEK'NUCLEAR GENERATINGSTAT'ON, UNIT NO. 1

Notice of Avoiability of Draft Supplement tothe Final Environmental Statement

Notice is hereby given that a DraftSupplement to the Final Environmen-.tal Statement (NUREG-0428) hasbeen prepared by the Commission'sOffice of Nuclear Reactor Regulationrelated to the proposed constructionof the Aliens Creek Nuclear Generat-ing Station (ACNGS), Unit No. 1. bythe Houston Lighting & Power Com-pany. The proposed station is to be lo-cated in Austin County, Texas.

The Supplement Identifies the pro-ject changes resulting from the defer-ral and subsequent rescheduling ofUnit No. 1 and the cancellation ofUnit No. 2 of the initially proposed


8307

8308

two-unit station for the Allens Creeksite. It also assesses the associatedchanges in the environmental impactand adverse effects that were evaluat-ed in the FES and in staff testimonyat hearings before the Atomic Safetyand Licensing Board.

The Draft Supplement is availablefor inspection by the public in theCommission's Public Document Roomat 1717 H Street NW., Washington,D.C., and in the Sealy Public Library,415 Main Street, Sealy, Tex. TheDraft Supplement is also being madeavailable at the Houston-GalvestonArea Council, 3701 West AlabamaAvenue, Sealy, Tex. 77027. Requestsfor copies of the Draft Supplementshould be addressed to the U.S. Nucle-ar Regulatory Commission, Washing-ton, D.C. 20555. Attention: Director,Division of Document Control.

Interested persons may submit com-ments on the Draft Supplement to theFES for the Commission's consider-ation. Federal, State, and specifiedlocal agencies are being provided withcopies of the Draft Supplement (localagencies may obtain these documentsupon request).

Comments by Fdderal, State andlocal officials, or other members of thepublic received by the Commission willbe made available for public inspectionat the Commission's Public DocumentRoom in Washington, D.C. and theSealy Public Library, 415 Main Street,Sealy, Tex. Upon consideration ofcomments submitted with respect tothe Draft Supplement, the Commis-sion's staff will prepare a Final Sup-plement, the availability of which willbe published in the FEDERAL REGISTER.Comments are due by April 17, 1978.

Comments on the Draft Supplementfrom interested members of the publicshould be addressed to the U.S. Nucle-ar Regulatory Commission, Washing-ton, D.C. 20555, Attention: Director,Division of Site Safety and Environ-mental Analysis.

Dated at 'Bethesda, Maryland, this24th day of February 1978.

For the Nuclear Regulatory Com-mission.

ROBERT P. GECKLER,Acting Chief, Environmental

Projects Branch No. 1, Divi-sion of Site Safety and Envi-ronmental Analysis.

CFR Doc. 78-5353 Filed 2-28-78; 8:45 am]

[7590-01]

[Project Nos. P-657 and P-657A]

NEW YORK STATE ELECTRIC & GAS CORP.AND LONG ISLAND LIGHTING CO.

Receipt of Partial Application for ConstructionPermit and Facility License: Time for Submis-sion of Views on Antitrust Matters

New York State Electric & GasCorp. and the Long Island Lighting

Co. (applicants), pursuant to section103 of the Atomic Energy Act of 1954,as amended, filed one part of an appli-cation, dated January 10, 1978, in con-nection with their plans to constructand operate 2 pressurized water reac-tors at either the "New Haven" site,near Lake Ontario, or the "Stuyve-sant" site, near the Hudson River inNew York State. The designated sitewill be identified in the PreliminarySafety Analysis Report and Environ-mental Report, which are scheduled tobe submitted in October and Novem-ber 1978, respectively. Upon receipt ofthe remaining portions of the applica-tion dealing with radiological healthand safety and environmental matters,separate notices of receipt will be pub-lished by the Commission including anappropriate notice of hearing.

The portion of the application filedcontains the information requested bythe Attorney General for the purposeof an antitrust review of the applica-tion as set forth in 10 CFR 50, Appen-dix L.

A copy of the partial application Isavailable for public examination andcopying for a fee at the Commission'sPublic Document Room, 1717 H StreetNW., Washington, D.C. 20555. ProjectNos. P-657 and P-657A have been as-signed to the application and shouldbe ieferenced in any correspondencerelating to it.

Any person who wishes to have theirviews on the antitrust matters -of theapplication presented to the AttorneyGeneral for consideration or who de-sires additional information regardingthe matter covered by this notice,should submit such views or requestsfor additional information to the U.S.Nuclear Regulatory Commission,Washington, D.C. 20555, attention:Chief, Antitrust and IndemnityGroup, Office of Nuclear Reactor Reg-ulation, on or before April 24, 1978.

Dated at Bethesda, Md., this 14thday of February 1978.

For the Nuclear Regulatory Com-mission.

OLAN D. PARR,Chief, Light Water Reactors

Branch No. 3, Division of Pro-ject Management.

[FR Doc. '8-4538 Filed 2-21-78; 8:45 am]

[3110-01]

OFFICE OF MANAGEMENT ANDBUDGET

CLEARANCE OF REPORTS

List of Requests

The following is a list of requests forclearance of reports intended for usein collecting information from thepublic received by the Office of Man-agement and Budget on February 21,

1978 (44 U.S.C. 3509). The purpose ofpublishing this list in the FEDERALREGISTER is to inform the public.

The list includes the title of each re-quest received; the name of the agencysponsoring the proposed collection ofinformation; the agency formnumber(s), if applicable; the frequencywith which the information is pro.posed to be collected: an indication ofwho will be the respondents to theproposed collection; the estimatednumber of responses; the estimatedburden In reporting hours; and thename of the reviewer or reviewing divi.sion of office.

Requests for extension which appearto raise no significant issues are to beapproved after brief notice throughthis release.

Further information about the Itemson this daily list may be obtained fromthe Clearance Office, Office of Man-agement and Budget, Washington,D.C. 20503, 202-395-4529, of from thereviewer listed.

NEW FoRMS

NATIONAL SCIEN CE FOUNDATIONSurvey of State Agency Research and De-

velopment, RD-1 and 2. single time, Stategovernment agencies, Laverne V. Collinsand Ellett, C. A., 395-3214.

Publishing Policies and Practices Survey,single time, sample of editors and publish.ers of scientific Journels, Laverne V, Col-lins. Office of Federal Statistical Policyand Standards, 395-3214.

Activities of Sciences and Engineering Faculty in Universities and 4-Year Colleges,single time, science tnd engineering facul-ty in 4 year colleges and universities, La-verne V. Collins, 395-3214.

SMALL BUSINESS ADMINISTRATION

Small Business Development Center Pro-gram Evaluation, single time, businessfirms, economics and general governmentdivision, Reese B. F., 395-3451.

NATIONAL SCIENCE FOUNDATION

Survey of Local Government Research andDevelopment, RD-4, 4A, and 4, singletime, 2,000 largest local governments La.verne V. Collins and Ellett, C. A., 395-3214.

DEPARTMENT OF COMMERCE

Bureau of Census:Agriculture Questionnaire, Listing Shoot,

single time, farms, Ellett, C. A,, 395-6132.

Agripulture Questionnaire, Listing Page,78-Al(PR). 78-A3(PR), single time,farms, Ellett, C.A,, Office of FederalStatistical Policy and Standard, 395-,6132.

DEPARTMENT Or HEALTH, EDUCATION, ANDWELFARE

Health Care Financing Administration(Medicare), Medicare Second SurgicalOpinion Demonstration Projects, HCFA -36T, 37T, and 38T, on occasion, 7,750 re-questers of second surgical opinions,Human Resources Division, Richard El.singer, 395-3532.


NOTICES

NOTICES

REVISIONS

DEPARTMENT OF STATE (EXCLUDING AID ANDACTION)

Application for Confidential Verification ofBirth, DSP-16, ,on occasion, Registrar ofVital Statistics Office, 1,000 responses, 100-ours, Marsha Traynham, 395-3773.

DEPARTMENT OF HEALTH, EDUCATION, ANDWELFARE

Social Security Administration:1978 Survey of Widows Without Benefits,

SSA-3584, single time, widows, 3,000 re-sponses, 1,000 hours, Office of FederalStatistical Policy and Standard. 673-7959.

Report of Continuing Disability Interview,SSA-454, on occasion, persons entitledto disability benefits, 300,000 responses,75,000 hours, Caywood, D. P., 395-3443.

EXTENSIONS

DEPARTMENT OF ENERGY

National Survey of Compensation PaidS7E's Engaged in Research and Develop-ment, annually, R. & D. establishments,325 responses, 4,190 hours, Laverne V. Col-lins, 395-3214.

DEPARTMENT OF HEALTH, EDUCATION, ANDWELFARE.

Center for Disease Control, Trade Name Re-quest Form for NOHS, CDC NIOSH 09,on occasion, chemical manufacturers,20,000 responses, 5,000 hours, Ellett. C. A.,395-6132.

DEPARTMENT OF JUCTICE

Immigration and Naturalization Service:Crewmans Ianding Permit. 1-95A. on oc-

casion, alien crewman, 150,000 re-sponses, 25,000 hours, Marsha Trayn-ham, 395-3773.

Petition to Classify Status of Alien Rela-tive for Issuance of Immigrant Visa, I-130, on occasion, U.S. citizen, permanentresident, 200,000 responses, 100,000hours, Marsha Traynham, 395-3773.

DAVID R. LEUTHOLD,Budget and Management Officer.

[FR Doc. 78-5440 Filed 2-28-78; 8:45 am]

[8010-01]SECURITIES AND EXCHANGE

COMMISSION

[Release No. 10124; 812-4239]

AMERICAN MEDICAL ASSOCIATION TAX-EXEMPT INCOME FUND INC., AND CONTI-NENTAL ILLINOIS NATIONAL BANK & TRUSTCO. OF CHICAGO

Filing of Application of the Act for an Order ofthe Commission Exempting Certain Transac-tions

FEBRuARY 17, 1978.Notice is hereby given that Ameri-

can Medical Association Tax-ExemptIncome Fund, Inc. (the fund), a Mary-land corporation, 535 North DearbornStreet, Chicago, ll. 60610, and Conti-nental Illinois National Bank & TrustCo. of Chicago (the adviser) (herein-after collectively referred to as the ap-

plicant) 231 South LaSalle Street, Chi-cago, Ill. 60693, filed an application onDecember 5, 1977, pursuant to section10(f) of the Investment Company Actof 1940 (the Act), for an order of theCommission exempting certain trans-

_actions of the Fund from the provi-sions of section 10(f) of the Act so asto permit the Fund to purchase mu-nicipal bonds (as hereinafter defined)in public offerings in which the Fund'sinvestment adviser participates as aprincipal underwriter, subject to cer-tain conditions specified in the appli-cation and set forth below. All inter-ested persons are referred to the appli-cation which Is on file with the Com-mission for a statement of the repre-sentations made1 therein, which aresummarized below.

The Fund is a diversified open-end,management investment company andis registered under the Act. On Sep-tember 30, 1977, the Fund filed a regis-tration statement on Form N-8B-1pursuant to section 8(b) of the Act. Onthat same date It also filed a registra-tion statement on Form S-5 under theSecurities Act of 1933 In order to beable to commence a distribution ofshares of common stock, which hasnot as yet been declared effective. TheFund's investment objective Is to pro-vide shareholders, through investmentin and active management of a diversi-fied portfolio of municipal bonds, ashigh a level of Federally tax-exemptincome as Is consistent with prudentinvestment and preservation of cap-ital. In seeking this objective, the ad-viser proposes to invest at least 80 per-cent of the Fund's assets in a diversi-fied portfolio consisting primarily offixed-income obligations issued by oron behalf of States, territories, andpossessions of the United States and-the District of Columbia and their po-litical subdivisions, agencies, and in-strumentalities, including municipal-ities and multistate agencies, the inter-est on which Is exempt from Federalincome taxation (such obligationsbeing referred to hereinafter as mu-nicipal bonds). However, the abovepercentage may be reduced for tempo-rary periods in circumstances which,in the opinion of the adviser, require adefensive position for protection ofthe Fund's stockholders. The Fundalso anticipates that from time to timeit may invest a portion of its assets(not to exceed 20 percent of theFund's assets, except as indicatedabove) in temporary investments, theincome from which may be subject toFederal income taxation.

The Fund and the adviser are par-ties to an investment advisory agree-ment pursuant to which the adviserprovides specified management ser-vices to the Fund in return for a setfee. The Adviser is registered as' an in-vestment adviser under the Invest-ment Advisers Act of 1940. According-

ly, the Fund and the adviser are eachan affiliated person of each other asthat term is defined in section 2(a)(3)of the Act.

The Adviser is a major commercialbank and trust company and dealerand underwriter in municipal and gov-ernment obligations and other typesof securities. Through its municipal se-curities division the adviser partici-pates as an underwriter in a substan-tial number of public offerings of mu-nicipal bonds.

Three of the five members of theFund's board of directors are interest-ed persons of the Fund. The remain-Ing two directors are not Interestedpersons of the Fund.

Section 10(f) of the Act, In pertinentpart, provides that no registered in-vestment company shall knowinglypurchase or acquire, during the- exis-tence of any underwriting or sellingsyndicate, any security a principal un-derwriter of whilch is an officer, direc-tor, investment adviser, or employee ofsuch investment company, or is aperson of which any such officer, di-rector, inVestment adviser, or employ-ee Is an affiliated person. That sectionfurther provides that the Commission,by rules or regulations upon its ownmotion or by order upon application,may exempt any transaction or classesof transactions from the restrictionscontained therein to the extent suchexemption is consistent with the pro-tectiorl of investors.

Pursuant to the rulemaking author-ity granted by section 10(f), the Com-mission adopted rule 10f-3 in 1958.The rule provides that a purchase ofsecurities by a registered investmentcompany prohibited by section 10(f) ofthe Act shall be exempt from the pro-visions of that section if certain condi-tions are satisfied. The applicants notethat rule 10f-3 was designed for under-written offerings of corporate equityand debt securities, whereas theyintend to invest primarily in municipalbonds. The applicants assert that un-derwritten offerings of municipalbonds are conducted under different.terms and conditions than corporateunderewritings and for several reasonsdo not fit within the framework ofrule 10f-3. For example, there is noregistration requirement for municipalbonds under the Securities Act of 1933as required by section (a)(1) of rule10f-3. Therefore, the Fund will be pre-cluded from being able to take advan-tage of the exemption afforded by therule and will be unable to purchasemunicipal bonds in public offerings inwhich the adviser participates as a"principal underwriter," as such termis defined in section 2(a)(29) of theAct.

It is the applicants' contention, asstated in its application, that due tothe special nature of the municipalbond markert and its emphasis on dus-


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NOTICES

tributions through underwriting syn-dicates, the Fund must have access tothe primary underwriting market inorder to obtain best price and execu-tion in the accumulation of portfoliosecurities. Because of the large partici-pation of the adviser in these underw-ritings, the applicants believe that theprohibitions of section 10(f) would,unless modified, prejudice the Fundby precluding access to a significantportion of the municipal bond market.The applicants state that althoughthere may be a large secondarymarket in municipal bonds, this sec-ondary market lacks the depth and li-quidity of the corporate bond or short-term securities market and is moresusceptible to sharp price fluctuations.

In order for the'Fund to participatein public offerings of municipal bondsin which the adviser is a "principal un-derwriter," the applicants seek anorder of the Commission exempting itsproposed future purchases of munici-pal bonds from Section 10(f) on thebasis of the terms set forth below,which are discussed in the application.These termsare based upon rule 10f-3appropriately revised for the purposesof the requested exemptive order toreflect the special nature of the mu-nicipal bond market..

TERMs OF THE PROPOSED ORDER

The exemptive order sought by theapplicants would be subject to the fol-lowing conditions (paragraph refer-ences are keyed to the text of rule 10f-3):

(a) The securities to be purchasedshall be:

(1) Part of an issue of municipalbonds, the interest on which is exemptfrom Federal income tax, which isbeing offered to the public;

(2) Purchased at not more than thepublic offering price prior to the endof the first full business day after thefirst date on which the issue is offeredto the public;

(3) Offered pursuant to an under-writing agreement under which theunderwriters are committed to pur-chase all of the mufilcipal bonds beingoffered, if the underwriters purchaseany thereof;

(4) Acquired pursuant to an order(which may be conditional) placed byor for the account of the Fund with anunderwriter not earlier than 2 daysafter the first public announcement ofthe offering and prior to the first dateon which the issue is offered to thepublic;

(5) Purchased in an unsolicitedtransaction originating with the Fundor its investment adviser; and

(6) Purchased in transactions forwhich records are maintained settingforth the reasons for the purchase andfor the sale, if any, of any portfolio se-curities related to the transaction,which records shall be available for in-spection by the Commission.

(b) The gross commission, spread orprofit to the principal underwritersshall not exceed 2.5 percent of theprincipal amount of the issue.

(c) On the date of purchase the issueshall have received an investmentgrade rating, including conditional orprovisional ratings, from Standard &Poor's Corp. or Moody's Investors Ser-vice, Inc., Provided, however, If theissuer of the securities to be pur-chased, or the entity supplying therevenues from which the issue is bepaid, shall have been in continuous op-eration for less than a years, includingthe operations of any predecessor,then on the date of purchase the issueshall have received a rating of "A" orbetter from Standard & Poor's Corp.or Moody's Investors Service, Inc.

(d) The principal amount of munici-pal bonds to be purchased by theFund or by the Fund and any other in-vestment companies having the sameinvestment adviser, shall not exceed 3percent of the principal amount of theissue being underwritten or $500,000 inprincipal amount, whichever is great-er, but in no event greater than 10 per-cent of the principal amount of theissue. ,

(e) The consideration to be paid bythe Fund in purchasing the municipalbonds being offered shall not exceed 3percent of the total assets of theFund; Provided That if such consider-ation shall exceed $1,000,000, it shallnot-exceed 2 percent of the Fund'stotal assets.

(f) The exemptive order shall not beconstrued to permit transactions withany affiliated person or principal un-derwriter of the Fund or any affiliatedperson thereof (including purchasesfrom syndicate managers designatedas group sales or otherwise allocatedto the account of such affiliatedperson or principal underwriter)which would otherwise be prohibitedby section 17 of the Investment Com-pany Act of 1940; the Ftind havingrepresented that it will keep its nonin-terested directors completely in-formed, and fully aware, of the avail-able alternatives with respect to recap-ture of the costs of portfolio transac-tions and having undertaken to takesuch steps as may be necessary to seekto implement any such recapture, in-cluding the filing of applications forexemptions under the InvestmentCompany Act of 1940, if the noninter-ested directors should determine thatrecapture is in the best interests of theFund or if otherwise required by de-velopments in the law.

(g) The purchase of the securitiesbeing offered shall have been autho-rized or approved by a resolution ofthe board of directors of the Fund, orof a committee composed of at leastthree members of such board (a ma-jority of which must be noninterestedpersons of the Fund), which resolution

shall state that in the judgment of theboard or committee, the purchase ofsecurities proposed will meet all therequirements of paragraphs (a)through i) of this exemptive orderand which authorization or approvalshall have been supported by the vote(by a meeting or by written consentgiven without a meeting) of not lessthan a majority of the members of theboard of directors or of the committeewho were not interested persons of theFund.

(h) The Fund shall set forth alltransactions conducted pursuant tothe exemptive order in its quarterlyreports filed with the Securities andExchange Commission on Form N-1Q.In addition, information as to suchtransactions shall be contained in thenotes to the Fund's published finan-cial statements.

(I) The officers and directors of theFund and its investment adviserassume the burden of establishingtLat each transaction made pursuantto the exemptive order is consistentwith the purpose of such order tot ssure that the selection of the Fund'sportfolio securities is in the interest ofthe Fund's security holders ratherthan in the interest of itg affiliatedpersons or in the interest of under-writers, brokers, or dealers.

The applicants state that, as setforth in Investment Company Act Re-lease No. 2797 (December 2, 1958), theconditions to the exemption from sec-tion 10(f) contained in Rule 10f-3 aredesigned to permit purchases withoutan exemptive order where the circum-stances are such as to make it unlikelythat the purchase will be inconsistentwith the protection of investors. Theapplicants contend in their applicationthat the exemption sought from theprohibitions of section 10(f) is consis-tent with the protection of investors,The applicants further contend thatthe terms of the exemption sought inthe application attempt to incorporatethe substantive provisions of Rule 10f-3 into a framework taking into ac-count the realities of municipal bondunderwritings so as to permit effectiveuse of the exemption and at the sametime making it unlikely that a pur-chase thereunder will be inconsistentwith the protection of investors.

Notice is further given that any in-terested person may, not later thanMarch 13, 1978, at 5:30 p.m,, submit tothe Commission in writing a requestfor a hearing on the application ac-companied by a statement as to thenature of his interest, the reasons forsuch request, and the issues, if any, offact or law proposed to be controvert-ed, or he may request that he be noti-fied if the Commission shall order ahearing thereon. Any such communi-cation should be addressed: Secretary,Securities and Exchange Commission,Washington, D.C. 20549. A copy of

FEDERAL REGISTER, VOL. 43, NO. 41-VIEDNESDAY, MARCH 1, 1978

8310

NOTICES

such request shall be served personallyor by mail upon the applicants at theaddresses stated above. Proof of suchservice (by affidavit, or in case of anattorney at law, by certificate) shall befiled contemporaneously with the re-quest. As provided by rule 0-5 of therules and regulations promulgatedunder the Act, an order disposing ofthe application herein will be issued asof course following said date, unlessthe Commission thereafter orders ahearing upon request or upon theCommission's own motion. Personswho request a hearing, or advice as towhether a hearing is ordered, will re-ceive any notices and orders issued inthis matter, including the date of thehearing (if ordered) and any postpone-ments thereof.

For the Commission, by the Divisionof Investment Management, pursuantto delegated authority. .

GEORGE A. FxTZuSIroNs,Secretary.

[FR Doc. 78-5341 Filed 2-28-78; 8:45am)

[8010-01]

[Release No. 14488; SR-Arnex-77-34]- AMERICAN STOCK EXCHANGE, INC.

Order Approving Proposed Rule Change

- FEBRUARY 17, 1978.On December 27, 1977, the American

Stock Exchange, Inc. ("Amex") 86Trinity Place, New York, N.Y. 10006,filed with the Commission, pursuantto section 19(b) of the Securities Ex-change Act of 1934 (the "Act"),. asamended by the Securities ActsAmendments of 1975 and rule 19b-4thereunder, copies of a proposed rulechange which requires that applicantsfor membership pass a floor qualifica-tion examination before being permit-ted to execute orders on the exchangefloor.

Notice of the proposed rule changetogether with the terms of substanceoftthe proposed rule change was given

-by publication of a Commission re-lease (Securities. Exchange Act Re-,lease No. 14341, January 5, 1978) andby publication in the PmuR.AL REGIS-TER (43 FR 1854, January 12, 1978).-The Commission finds that the pro-

posed rule change is consistent withthe requirements of the Act and therules and regulations thereunder ap-plicable to national securities ex-changes, and in particular, the re-quirements of section 6 and the rulesand regulations thereunder. More spe-cifically, the Commission finds thatthe proposed rule change is consistentwith section 6(c)(3)(A) of the Actwhich permits a national securities ex-change to examine and- vprify thequalifications of an applicant tobecome a member of the exchange.

It is therefore ordered, Pursuant tosection 19(b)(2) of the Act, that the

above-mentioned proposed rule changebe, and it hereby is, approved.

For the Commission, by the Divisionof Market Regulation pursuant to del-egated authority.

GEORGE A. Frnzsn ONs,Secretary.

[FR Doc. 78-5342 Filed 2-28-78; 8:45 am]

[8010-01][Release No. 20418; 70-6119]

CONNECTICUT LIGHT & POWER CO.

Proposed Issuance and Sale of First MortgageBonds at Compelitive Bidding

FEBRUARY 21, 1978.Notice is hereby given that the Con-

necticut Light & Power Co. ("CL&P"),Selden Street, Berlin, Connt 06037. apublic-utility subsidiary company ofNortheast Utilities. a registered hold-ing company, has filed an applicationwith this Commission pursuant to thePublic Utility Holding Company Actof 1935 (Act), designating section 6(b)of the Act and rule 50 promulgatedthereunder as applicable to the follow-ing proposed transaction.Al interest-ed parties are referred to said applica-tion, which Is summarized below, for acomplete statement of the proposedtransaction.

CL&P proposes to issue and sell, atcompetitive bidding, up to $40 million.principal amount of its first and re-funding mortgage - -percent bonds,series EE, due March 1, 2008. The In-terest rate, which shall be a multipleof Vs of 1 percent, and the price, exclu-sive of accrued interest, to be paid toCL&P, which will be not less than 99percent nor more than 102.75 percentof the principal amount thereof, willbe determined by competitive bidding.The bonds will be issued under the in-denture of mortgage and deed of trustdated as of May 1, 1921, betweenCL&P and Bankers Trust Co., trustee,as supplemented and amended fromtime to time, and as to be further sup-plemented by a supplemental inden-ture to be dated March 1, 1978. Thesupplemental indenture provides,among other things, that the bondsshall not be redeemed at the applica-ble general redemption price prior toMarch 1, 1983, if such redemption Isfor the purpose of or in anticipation ofrefunding such bonds through the use,directly- or indirectly, of funds bor-rowed by CL&P at an effective inter-est cost of less than the effective inter-est cost of the bonds.

The net proceeds from the sale ofthe bonds will be used by CL&P pri-marily to repay a portion of the com-pany's short-term borrowings estimat-ed to total $65,000,000 at the time ofsuch sale. Such short-term borrowingswere applied to finance CL&P's 1977-1978 construction program.

The Company's 1978 constructionprogram expenditures are expected tototal about $123,700,000, including ap-proximately $5,000,000 for nuclearfuel. In addition to the sale of thebonds, the Company estimates that itwill require an additional $85,300,000of funds from external sources to com-plete its 1978 construction programand to pay at maturity $16,000,000- of 3percent bonds in 1978. It expects toobtain such funds temporarilythrough short-term borrowings. In ad-dition, if the company is successful inselling Its 12 percent interest irL Sea-brook, NZH., nuclear units, approxi-mately $73,000,000 of proceeds will beavailable to It.

A statement of the fees and ex-penses incurred or to be incurred inconnection with the proposed transac-tions will be supplied by amendment.The approval of . the ConnecticutPublic Utilities Control Authority isrequired for the issuance of the bonds.It is represented that no other statecommission, and no federal commis-sion, other than this Commission, hasjurisdiction over the proposed transac-tion.

Notice Is further given that any in-terested person may, not later thanMarch 14, 1978, request in writing thata hearing be held on such matter, stat-ing the nature of his interest, the rea-sons for such request, and the issuesof fact or law raised by-said applica-tion which he desires to controvert; orhe may request that he be notified ifthe Commission should order a hear-ing thereon. Any such request shouldbe addressed: Secretary, Securities andExchange Commission, Washington,D.C. 20549. A copy of such requestshould be served personally or by malupon the applicant at the above-statedaddress, and proof of service (by affi-davit or, in case of an attorney at law,by certificate) should be filed with therequest. At any time after said date,the application, as filed or as it may beamended, may be granted as providedin rule 23 of the general rules and reg-ulations promulgated under the At,or the Commission may grant exemp-tion from such rules as provided inrules 20(a) and 100 thereof or takesuch other action as it may deem ap-propriate. Persons who request a hear-ing or advice as to whether a hearingis ordered will receive any notices andorders issued in this matter, includingthe date of the hearing (if ordered)and any postponements thereof.

For the Commission, by the Divisionof Corporate Regulation, pursuant todelegated authority.

GEoRo A. F iE'I =ONS,

Secretary.

(FR Doe. 78-5343 Filed 2-28-78; 8:45 am]

FEDERAL REGISTER, VOL 43, NO. 41-WEDUJESDAY, MARCH 1, 1978

8311

NOTICES

[8010-01][File Nos. 3-5369; 81-3057

COUNTRY KITCHEN INTERNATIONAL, INC.

Application and Opportunity for Hearing

FEBRUARY 17, 1978.Notice is hereby given that Country

Kitchen International, Inc. ("Appli-cant") has filed an application pursu-ant to section 12(h) of the SecuritiesExchange Act of 1934, as amended(the "1934 Act"), for an order grantingApplicant an exemption from the pro-visions of section 15(d) of the 1934Act. '

The Applicant states, in part:

1. Pursuant to an Agreement of Mergerdated June 14, 1977, CC-2, Inc.. an indirectsubsidiary of Carlson Cos.. Inc., was mergedinto the Applicant, effective November 17,1977. As a result of said merger, all of theremaining public stockholders of the aboveCompany became entitled to receive $10 pershare In cash, which shares were extin-guished and canceled as a matter of law onsaid effective date.

2. As of said effective date, CC-1, Inc., theparent of CC-2, Inc., and a direct subgidiaryof Carlson Cos., Inc., became the sole stock-holder of the Applicant, and no furthertrading has been effected in the stock of theabove Company.

3. The Applicant has filed with the Com-mission its Form 10-Q for the period endedSeptember 30, 1977, and a Form 8-K to re-flect said merger.

Accordingly, the Applicant believesthat the granting of the exemptionwould not be inconsistent with thepublic interest or the protection of in-vestors.

For a more detailed statement of theinformation presented, all persons arereferred to said application which ison file in the offices of the Commis-sion at 500 North Capitol StreetNW.,Washington, D.C.

Notice is further given that any in-terested person not later than March14, 1978, may submit to the Commis-sion in writing his views or any sub-stantial facts bearing on this applica-tion or the desirability of a hearingthereon. Any such communication orrequest should be addressed: Secre-tary, Securities and Exchange Com-mission, 500 North Capitol StreetNW., Washington, D.C. 20549, andshould state briefly the nature of theInterest of the person submitting suchinformation of fact and law raised bythe application which he desires tocontrovert. At any time after saiddate, an order granting the applicationmay be issued upon request or uponthe Commission's own motion.

For the Commission, by the Divisionof Corporation Finance, pursuant todelegated authority.

GEORGE A. FITZSIMbiONS,

Secretary.

[FR Doc. 78-5344 Filed 2-28-78; 8:45 am]

[8010-01][Release No. 10125; 812-4186]

MASSACHUSETTS MUTUAL LIFE INSURANCECO. AND MASSMUTUAL INCOME INVES-TORS, INC. o

Filing of Application for Order

FEBRUARY 21, 1978.Notice is hereby given that Massa-

chusetts Mutual Life Insurance Co.(the "Insurance Company") and Mass-Mutual Income -Investors, Inc. (the"Fund"; referred to hereinafter to-gether with the Insurance Companyas "Applicants"), 1295 State Street,Springfield, Mass. 01111, a closed-end,diversified management investmentcompany registered under the Invest-ment Company Act of 1940 ("Act"),have filed an application on Septem-ber 8, 1977, and amendments theretoon October 3, 1977, December 17, 1977,and January 9, 1978, for an order ofthe Commission: (1) pursuant to sec-tion 17(b) of the Act exempting fromthe provisions of section 17(a) of theAct a proposed sale by the InsuranceCompany to the Fund of $2,000,000principal amount of 9% .20-Year SeniorNotes (the "Notes") of vlMEI Corp.("MEI") at the price paid by the In-surance Company for the purchase ofthe Notes transferred, plus accrued in-terest, and (2) pursuant to section17(d) of the Act and Rule 17d-1 there-under permitting the Insurance Com-pany and the Fund to purchase, fromMET, $15,500,000 principal amount and$1,000,000 principal amount, respec-tively, of the Notes. All interested per-sons are referred to the application onfile with the Commission for a state-ment of the representations containedtherein, which are summarized below.

Applicants state that MEI is' issuing,at direct placement, $22,000,000 aggre-gate principal amount of the Notes,and that the Insurance Company hasbeen offered for purchase the entireamount of that issue. According to theapplication, the Notes are unsecuredand contain no provisions subordinat-ing the Notes to any other indebted-ness of MEL. Applicants further statethat on December 2, 1977, the Insur-ance Company purchased $5,500,000principal amount of the Notes andthat it is planned that the remainderof the Notes will be purchased at asecond closing occuring sometime in1978.

Applicants assert that the InsuranceCompany, which is the investment ad-viser of the Fund, believes the Notesto be an attractive investment for theFund. Accordingly, Applicants proposethat the Fund invest in the Notes inthe following manner.

First, Applicants propose ("FirstProposal") that the Fund purchasefrom the Insurance Company$2,000,000 principal amount of the

$5,500,000 principal amount Notes pur-chased by the Insurance Company atthe first closing. The price of theNotes sold to the Fund would be theprice paid by the Insurance Companyfor such Notes plus accrued Interestrunning from December 2, 1977 (thedate of the first closing) to the date ofthe Fund's purchase. Upon purchase,the Fund will be bound by the sameterms and conditions subject to whichthe Insurance Company presentlyholds such securities. The Applicantsstate that the purchase of the Notesby the Fund will occur only if theCommission Issues the exemptiveorder requested herein on or beforeMarch 31, 1978. If that order is issued,the purchase will be made within onemonth after such issuance; if the ex-emption is not granted on or beforeMarch 31, 1978, then the InsuranceCompany will retain for investmentthe entire amount of the Notes pur-chased at the first closing. Applicantsstate that the Fund will not purchaseany Notes from the Insurance Compa-ny unless such purchase has been ap-proved by a majority vote of the direc-tors of the fund who are not interest-ed persons of the Insurance Company.

Second, Applicants propose ("SecondProposal") that the Insurance Compa-ny and the Fund Investment concur-rently in the $16,500,000 principalamount of the Notes to be issued atthe second closing. Applicants statethat the Insurance Company and theFund would purchase $15,000,000 prn.cipal amount and $1,000,000 principalamount of the Notes, respectively. Ap-plicants state, however, that thesecond closing Is contingent upon cer-tain closing conditions being met,These closing conditions provide gen-erally that NEI must be in the samebusiness and financial condition as itwas at the time of the first closing. Ifthe closing conditions are not metthen the Insurance Company and theFund each have the right to refrainfrom purchasing the Notes scheduledto be issued at the second closing. Fur-ther, Applicants state that the Fundwill not purchase any of the Notesfrom MEI at the second closing unlessthe Insurance Company purchases$15,500,000 in principal amount of theNotes from MEI at such closing.

The Applicants assert that the In-surance Company holds warrants, ex-ercisable at any time prior to February1, 1983, to purchase up to 190,532shares of MEI common stock at a priceof $2.29 per share and warrants, exer-cisable at any time prior to June 1,1984, to purchase up to 53,571 sharesof MVIEI common stock at a price of $5per share (hereinafter "MEI War-rants"). Applicants also assert the In-surance Company holds a 71/% SeniorNote due 1983 of Beverages, Inc., awholly-owned subsidiary of ME, inthe outstanding" principal amount of


8312

4OTICES

$1,990,000 ("Beverage Note"). Appli--cants state that the Fund owns no se-curities of MEI or any of its subsidiar-ies.

Section 2(a)(3) of the Act defines anaffiliated person of an investmentcompany to include any investmentadviser thereof.

Section 17(a) of the Act provides, inpart, that it is unlawful for any affili-ated person of a registered investmentcompany, acting as principal, knowing-ly to sell any security to such regis-tered investment company. Section17(b) of the Act generally providesthat, upon application, the Commis-sion shall exempt a proposed transac-tion from the provisions of section17(a) of the Act if evidence establishesthat the terms of the proposed trans-action, including the consideration tobe paid or received, are reasonable andfair and do not involve overreachingon the part of any person concerned,and that the proposed transaction isconsistent with the policy of the regis-tered investment company concernedand with the general purposes of theAct. Applicants request an order pur-suant to section 17(b) of the Actexempting from the provisions of sec-tion 17(a) of the Act the First Propos-al, involving the sale by the InsuranceCompany of Notes to the Fund, Appli-cants state that the terms of thetransfer are reasonable and fair anddo not involve any overreaching onthe part of either the Insurance Com-pany or the Fund since: (1) the consid-eration paid by the Fund would equalthe price paid by the Insurance Com-pany for the Notes, plus accrued inter-est, and (ii) the Insurance Company isretaining over half of the Notes pur-chased by it-on December 2, 1977, thussharing with the Fund the risk thatthe Notes may prove to be a poor in-vestment. Applicants also state thatthe proposed transaction is consistentwith: (i) the policy of the Fund as re-cited in its registration statements,and (ii) the general purposes of theAct.

Section 17(d) of the Act and Rule17d-1 thereunder, taken together, pro-vide, in part, that it is unlawful for anaffiliated person of a registered invest-ment company, acting as principal, toeffect any transaction in which suchregistered investment company is ajoint participant, without the permis-sion of the commission. Rule 17d-1provides, in part, that in passing uponapplications for orders granting suchpermission, the Commission will con-sider. (1) whether the participation ofthe investment company in such trans-action on the basis proposed is consis-tent with the provisions,, policies, andpurposes of the Act, and (2) the extentto which such participationis on abasis different from or less advanta-geous than that of other participants.Applicants request an order pursuant

to section 17(d) of the Act and Rule17d-1 thereunder permitting the In-surance Company to participate in theSecond Proposal, involving the jointpurchase by the Insurance Companyand the Fund of Notes from MEl. Ap-plicants assert that: (I) the InsuranceCompany and the Fund are purchas-ing the Notes on the same basis andnot on a basis more favorable to theInsurance Company than to the Fund,and (ii) the purchase is consistent withthe provisions, policies, and purposesof the Act. Applicants assert furtherthat the Insurance Company considersthe Notes a sound investment and thatit would be to the Fund's disadvantagenot to purchase a portion of the Notes.

Applicants state that the interest ofthe Insurance Company in the =warrants and the Beverage Notes hadno effect on the decision of the Insur-ance Company that the Notes are anattractive Investment for both the In-surance Company and the Fund. Theyalso state that the Notes are a type ofsecurity in which the Fund's Invest-ments are restricted to 25% of Its totalassets, and that the Fund has approxi-mately $36,000,000 In assets whichmay be invested in this type of securi-ty. Applicants assert that the decisionfor the Fund to purchase 3,000,000principal amount of the Notes wasmade by balancing the belief by theApplicants that long-term interestrates would not move significantlyhigher than 9% versus the desirabilityof the Fund's maintaining a liquid po-sition.

Notice is further given that any In-terested person may, not later thanMarch 17, 1978, at 5:30 p.m., submit tothe Commission In writing a requestfor a hearing on the matter accompa-nied by a statement as to the nature ofhis interest, the reason for such re-quest, and the issues, if any, of fact orlaw proposed to be controverted, or hemay request that he be notified If theCommission shall order a hearingthereon. Any such communicationshould be addressed: Secretary, Securi-ties and Exchange Commission, Wash-ington, D.C. 20549. A copy of such re-quest shall be served personally or bymail upon Applicants at the addressstated above. Proof of such service (byaffidavit or, In the case of an attorney-at-law, by certificate) shall be filedcontemporaneously with the request.As provided by Rule 0-5 of the rulesand regulations promulgated underthe Act, an order disposing of the ap-plication will be issued as of course fol-lowing said date unless the Comnis-sion thereafter orders a hearing uponrequest or upon the Commission's ownmotion. Persons who request a hear-ing, or advice as to whether a hearingis ordered, will receive any notices andorders issued in this matter, includingthe date of the hearing (if ordered)and any postponements thereof.

For the Commission, by the Divisionof Investment Management, pursuantto delegated authority.

GEORGE A. Fn smMOxs,Secretary.

[F Doe. 78-5345 FIled 2-28-78; 8.45 am]

[8010-01](Release No. 10129, 812-4193]

MASSACHUSETTS MUTUAL LIFE INSURANCECO., AND MASSMUTUAL INCOME INVES-TORS, INC.

Filing of Applioaf on for Order

FtsRuARY 22, 1978.Notice Is hereby given that Massa-

chusetts Mutual Life Insurance Co.("Insurance Company"), and MassMu-tual Income Investors, Inc. ("Fund"),1295 State Street, Springfield, Mass.01111, closed-end, diversified manage-ment investment company registeredunder the Investment Company Act of1940 ("Act"), (hereinafter collectivelyreferred to as "Applicants"), have filedan application on September 26, 1977,and amendments thereto on November14, 1977, and February 1, 1978, (1) pur-suant to section 17(d).of the Act andRule 17d-1 thereunder, for an order ofthe Commission permitting the Insur-ance Company to purchase $9,000,000principal amount and the Fund to pur-chase $3,000,000 principal amount atdirect placement of a new issue of8.5% 20-year senior notes ("Notes") ofMead Corp. ("Mead"), and (2) alterna-tively, in the event the InsuranceCompany purchases $12,000,000 inprincipal amount of the Notes beforethe Issuance of such order, for anorder pursuant to Section 17(b) of theAct exempting from the provisions ofSection 17(a) of the Act the sale of$3,000,000 in principal amount of theNotes plus accrued interest by the In-surance Company to the fund. All in-terested persons are referred to theapplication on file with the Commis-sion for a statement of the representa-tions contained therein, which aresummarized below.

Applicants state that the Notes are aportion of an aggregate principalamount of $75,000.000 of Notes to beissued by Mead with no discount orpremium. Before the purchase by theInsurance Company of any of thisissue of Notes, the Insurance Compa-ny held $1,600,00) in principal amountof Mead's 8.50% debentures due 1995("Mead Debentures"). The Fund ownsno securities of Mead.

Applicants state that the InsuranceCompany purchased $3,000,000 inprincipal amount of Notes at a closingwhich took place December 22. 1977.and they expect that the remainingprincipal amount of Notes will beIssued at a closing to occur betweenApril 1, 1978 and June 30, 1978 ("LaterClosing").


8313

NOTICES

The Insurance Company is the in-vestment adviser for the Fund. Appli-cants represent that in the judgmentof the Insurance Company the Noteswould be an attractive investment forthe Fund, and the Insurance Companyunderstands that Mead is willing tosell a portion of the Notes to theFund. Applicants state that the Fundwill not pay any commission to any in-termediary in connection with thistransaction. They state further thatany modification, amendment, orwaiver affecting the loan agreementsor the Notes will affect the Fund andthe Insurance Company equally.

Applicants propose the following al-ternative arrangements, dependingupon the issuance of the requestedCommission order prior to the LaterClosing, or subsequent to the LaterClosing.

I. Should the Commission ordersought herein issue prior to the Later

.Closing, Applicants contemplate thatthe Fund will enter into note purchaseagreements with Mead providing forpurchase by the Fund of $3,000,000principal amount of the Notes at theLater Closing and purchase by the In-surance Company of $9,000,000 of theNotes from Mead at the Later Closing.

According to the application, the-fote purchase agreements would con-tain customary closing conditions, andif the closing conditions were not satis-fied at the time of the Later Closing,the Applicants would have the right torefrain from purchasing the Notesscheduled to be issued at such closing.However, Applicants state that theFund will not purchase any Notesfrom Mead at the second closingunless the Insurance Company pur-chases $9,000,000 in principal amountof Notes from Mead at such closing.Applicants represent that if the Fundpurchases Notes from Mead at theLater Closing, the Fund will pay thesame price as the Insurance Companyfor the Notes.

iI. Should the Commission ordersought herein issue subsequent to theLater Closing, Applicants representthat, pending receipt of such an order,the Insurance company is prepared tocommit to purchase for its general ac-count $12,000,000 in principal amountof Notes at such closing, subject to theobligation to transfer to the Fund$3,000,000 in principal amount of theNotes acquired by the Insurance Com-pany at the Later Closing. Applicantsstate that such obligation is subject toreceipt of a favorable commissionorder issued within three months ofthe Later Closing.

Applicants state that the price to bepaid by the Fund for the Notes will beequal to the price paid by the Insur-ance Company for the Notes, plus ac-crued interest from the date of the In-surance Company's purchase to thedate of transfer.

With respect to such transfer ofNotes from the Insurance Company tothe Fund, Applicants state that (1) if afavorable Commission order is issuedwithin thirty days after the LaterClosing, the Insurance Company willtransfer the Notes to the Fund as soonas practicable; or, alternatively, (2) if afavorable Commission order is issuedmore than thirty days after the LaterClosing but within three months aftersuch closing the Fund will not pur-chase any Notes from the InsuranceCompany unless such purchase hasbeen approved by a majority vote ofthe Directors of the Fumd who are notinterested persons of the InsuranceCompany ("Required Vote"). Appli-cants state that the Required Vote willtake place within 45 days of receipt ofa favorable order, and that the Insur-ance Company will transfer the Notesto the Fund as soon as practicableafter such transfer is approved by theRequired Vote.

According to the application, thepurpose of the 45 day time allowancefor the Required Vote is to allow forthe scheduling of a meeting of suchDirectors. The application furtherstates that such meetings are general-ly held no more often than once amonth.

Should the requested -Commissionorder not issue, Applicants state thatall the Notes purchased by the Insur-ance Company will be retained by itfor investment.

Section 2(a)(3) of the Act includes,within the definition of the term "af-filiated person" of an investment com-pany, the investment adviser to the in-vestment company. Therefore, as theinvestment adviser to the Fund, theInsurance Company is an affiliatedperson of the Fund.

Section 17(d) of the Act, and Rule17d-1 thereunder, taken together, pro-vide, in part, that it is unlawful for anaffiliated person of registered invest-ment company, acting as principal, toeffect any transaction in which suchinvestment company is a joint partici-pant, without the permission of theCommission. Rule 17d-1 provides, inpart, that in passing upon applicationsfor orders granting such permission,the Commission will consider (1)whether the participation of the in-vestment company in such transactionon the basis proposed is consistentwith the provisions, policies, and pur-poses of the Act, and (2) the extent towhich such participation is on a basisdifferent from or less advantageousthan that of other participants.

With respect to alternative I, above,the Applicants submit that unless theapplication is granted, Rule 17d-1might arguably prevent the Fundfrom acquiring any of the Notes fromMead in connection with a transactionin which other Notes were being ac-quired from Mead by the Insurance

Company. Applicants state that in theabsence of the requested order, the In-surance Company would exclude theFund and participate only for its owngeneral fund, even though, in thejudgment of the Insurance Company,the Notes are an attractive investmentfor the Fund.

Applicants argue that the InsuranceCompany and the Fund will be pur-chasing Notes on the same basis andnot on a basis more favorable to theInsurance Company than to the Fund.In the judgment of the InsuranceCompany, the Notes provide an attrac-tive yield and represent a sound in-vestment; thus, the Applicants assertthat the Fund would be disadvantaged

'if it was not permitted to acquire aportion of the new issue of Notes.They assert further that the purposeof the application Is to avoid a disad-vantage to the Fund, and that the in-terest of the Insurance Company inthe Mead Debentures has had noeffect on the decision of the InsuranceCompany that the Notes are an attrac-tive investment for both the InsuranceCompany's general account and forthe Fund.

The Insurance Company believesthat it is appropriate to share with theFund the $15,000,000 in principalamount of the Notes which the Insur-ance Company has been offered onthe basis of $3,000,000 in principalamount for the Fund and $12,000,000in principal amount for the InsuranceCompany. In support of this assertion,Applicants submit the following: Theinvestment policies of the Fund callfor the Fund to invest at least 75% ofits total assets in one or more of fivecategories of high grade interest-bear-ing debt securities and in cash or cashequivalents. In addition, the Fund mayinvest up to 25% of Its assets In certainother types of securities. The Fundnow has approximately $36,000,000 Inassets which may be invested In thelatter types of securities, and the In-surance Company believes It would beinadvisable for too large a portion ofthose assets to be Invested in one re-stricted debt security. Hence, the In-surance Company believes that Itwould be advisable for the Fund to ac-quire $3,000,000 in principal amount ofthe Notes Instead of (for instance) theFund and the Insurance Companyeach acquiring one-half of the princi-pal amount of the Notes offered to theInsurance Company. Applicantssubmit that to make available to theFund the investment opportunity pre-sented by the proposed Notes is consis-tent with the provisions, policies, andpurposes of the Act.

Section 17(a) of the Act provides, inpart, that it is unlawful for any affili-ated person of a registered investmentcompany knowingly to sell to such reg-istered investment company any secu-rity or other property. Pursuant to


8314

NOTICES

Section 17(b) of the Act, the Commis-sion, upon application, shall grant anexemption from such prohibition ifevidence establishes that the terms ofthe proposed transaction are fair andreasonable and do not involve over-reaching on the part of any personconcerned, and that the proposedtransaction is consistent with thepolicy of each registered investmentcompany concerned and with the gen-eral purposes of the Act. With regardto alternative II, above, Applicantssubmit that the transfer would techni-cally fall within the provisions of Sec-tion 17(a) of the Act.

Applicants submit that (1) the termsof such a transfer, since the consider-ation paid by the Fund would equalthe price paid by the Insurance Com-pany for the Notes, plus accrued inter-est, will be reasonable and fair and willnot involve overreaching on the partof either the Insurance Company orthe Fund; (2) the proposed transactionwill- be consistent with the policy ofthe Fund as recited in its registrationstatements; and (3) the proposedtransaction will be consistent with thegeneral purposes of the Act.- Notice is further given that any in-terested person may, not later thanMarch 17, 1978, at 5:30 p.m, submit tothe Commission in writing a requestfor a hearing on the matter accompa-nied by a statement as to the nature ofhis interest, the reason for such re-quest, and the issues, if any, of fact orlaw proposed to-be controverted, or hemay request that he be notified if theCommission shall order a hearingthereon. Any such communicationshould be addressed: Secretary, Securi-ties and Exchange Commission, Wash-ington, D.C. 20549. A copy of such re-quest shall be served personally or bymail upon Applicants at the addressstated above. Proof of such service (byaffidavit or, in the case of an attorney-at-law, by certificate) shall be filedcontemporaneously with the request.As provided by Rule 0-5 of the Rulesand Regulations promulgated underthe Act, an order disposing of the ap-plication will be issued as of course fol-lowing said date unless the Commis-sion thereafter orders a hearing uponrequest or upon the Commission's ownmotion. Persons who request a hear-ing, or advice as to whether a hearingis ordered, will receive any notices andorders issued in this matter, includingthe date of the hearing (if ordered)and any postponaments thereof.

For the Commission, by the Divisionof Investment Management, pursuant1o delegated authority.

GEORGE A. FrrzsIMuONs,Secretary.

EFR Doc. 78-5346 Filed 2-28-78; 8:45 am]

[8010-01](Release No. 10127; 812-42521

SCUDDER DEVELOPMENT FUND, ET AL.

Filing of Application for an Order ExemptingProposed Tronsadion

FEBRURY 22, 1978.Notice is hereby gived that Scudder

Development Fund ("Scudder"). 345Park Avenue, New York, N.Y. 10022.an open-end diversified managementinvestment company registered underthe Investment Company Act of 1940("Act"); and Title Insurance and TrustCo., Trustee for the Individual Retire-ment Account of Richard D. Colburn("TITC/IRA/RDC"); Title Insuranceand Trust Co., Trustee for the Em-ployees Retirement Plan of Consoli-dated Electrical Distributors. Inc.("TITC/ERP/CED"); Richard D. Col-burn ("RDC"); Judith N. Colburn("JNC"); The Employees RetirementPlan of Rolled Alloys, Inc. ("ERP/RA"); and Concord Investment Co.("Concord") (referred to collectivelyas "Buyers") c/o Bernard E. Lyons,Esq., 1516 Pontius Avenue, Los Ange-les, Calif. 90025, (Scudder and Buyersreferred to collectively as "Appli-cants") filed an application on Decem-ber 16, 1977 pursuant to section 17(b)of the Act for an order of the Commis-sion exempting from the provisions ofsection 17(a) of the Act the proposedsale by Scudder to Buyers of 50,000shares of common stock ("theShares") of Hughes Supply, Inc.("Hughes"). TITC/ERP/CED, as anaffiliated person of Hughes, which isan affiliated person of Scudder, wouldotherwise be prohibited under section17(a) of the Act from knowingly pur-chasing the shares from Scudder. Allinterested persons are referred to theapplication on file with the Commis-sion for a statement of the representa-tions contained therein, which aresummarized below.

Scudder was organized on February5, 1970, under the name of ScudderAM Fund, and on April 24. 1970. Itsname was changed to Scudder Devel-opment Fund. As of November 30.1977, Scudder had net assets of ap-proximately $21,349,309 and approxi-mately 840 shareholders.

RDC is a resident of Beverly Hills.Calif. and the retired chairman of TheSusquehanna Corp., a subsidiary ofStudebaker-Worthington Co., of whichRDC is a director. Consolidated Elec-trical Distributors, Inc. ("CED"), aDelaware corporation, Is a distributorof electrical supplies and apparatus.The capital stock of CED Is owned byRDC and his three children, Keith W.Colburn, Richard W. Colburn andCarol Colburn Hogel ("the Children").JNC is RDC's wife. Rolled Alloys, Inc.("RA"), a Delaware corporation, Is en-gaged in the business of steel ware-housing and, through subsidiaries, of

managing Investments. The Capitalstock of RA is owned by RDC and theChildren. Concord is a Nevada corpo-ration engaged in managing invest-ments. Concord is a wholly owned sub-sidiary of a wholly dwned subsidiary ofRA.

Applicants state that Hughes is aFlorida corporation engaged in thebusiness of distributing plumbing andelectrical supplies and manufacturing.The common stock of Hughes is ac-tively trided in the over-the-countermarket.

Scudder holds in its portfolio 93.500shares of the common stock ofHughes, or approximately 6.97 percentof the outstanding voting stock ofHughes. Each Buyer currently ownsthe number of shares of Hughescommon stock indicated in the follow-ing table, and each intends to pur-chase from Scudder additional sharesof Hughes common stock indicated inthe following table:

Number of Number ofBuyer shares held sharm

purchasing

TITCIIRAIRDC 22.300 9WTrC/iERPICED-- 157.000 9.000RODC, ,_15.000JNC ... 5OOERPJRA 2.000Concor.. 30.000 18.100

209300 50.000

Buyers do not concede that any ofthem other than TITC/ERP/CED isan affiliated person of Hughes withinthe meaning of section 2(a)(3) of theAct. However, because of the variousinterrelationships- between the pur-chasers it has been determined to in-lude all of them as Applicants.The Buyers represent that no one of

them nor any individual associatedwith any of them have any connectionwith Scudder as a shareholder, em-ployee or otherwise, nor do they haveany connection with Scudder, Stevens& Clark. the adviser to Scudder, eitherthrough personal relationships, as cli-ents, or through any business relation-ships whatsoever.

Scudder represents that on Friday,November 25, 1977 a representative ofBuyers approached Scudder by tele-:phone to determine whether Scudderhad any interest in selling any sharesof Hughes. Thereupon, Scudder madeinquiries through the NASDAQSystem and determined that therewere four brokerage houses bidding$14 and asking $14%z per share andfour or five additional brokeragehouses bidding $13% and asking $14%per share. After reviewing Hughes'current earnings and Its basic suitabil-Ity for Scudder's portfolio, it was de-termined to offer the Buyers 50,000shares at a price of $15, thus reducingScudder's holding to 43,500. This deci-


8315

NOTICES

sion was reached in the light of thejudgment that the holding should bereduced at that time, In addition, al-though $15 per share was less thanScudder's average cost of $16.59 pershare, Scudder determined that suchcommitment was not appropriate atthat time because Hughes had not metits expectations and the price hadfluctuated, since the original acquisi-tion of the Hughes shares, down to $7and then back up to $15.

On Monday, November 28, the repre-sentative of the Buyers called fromCalifornia before the opening of themarket in New York with an offer of$143/4, which Scudder refused. Appli-cants state that shortly thereafter therepresentative of the Buyers consultedfurther with his clients and agreed tomeet Scudder's price. The transactionwas confirmed by telegram sent No-vember 30. Scudder represents that ithad nO particular information aboutHughes which influenced its decisionto sell this block of 50,000 shares.

Section 17(a) of the Act provides, inpart, that it shall be unlawful for anyaffiliated person of a registered invest-ment company or any affiliated personof such person to knowingly purchasefrom such registered company, or anycompany controlled by such registeredcompany, any security or other prop-erty.

Scudder owns more than 5 percentof Hughes' capital stock, and there-fore, Hughes is an affiliated person ofScudder under. section 2(a)(3) of theAct. TITC/ERP/CED owns more than5 percent of Hughes' capital stock,and, therefore, it is an affiliatedperson of Hughes under section 2(a)(3)of the Act. TITC/ERP/CED, as an af-filiated person of an affiliated personof a registered investment company,acting as principal, is prohibited undersection 17(a) of the Act from knowing-ly purchasing from such registered in-vestment company any security orother property.

Section 17(b) of the Act provides, inpart, that the Commission upon appli-cation, may exempt a proposed trans-action from the provisions of section17(a) of the Act if the evidence estab-lishes that the terms of the proposedtransaction, including the consider-ation to be paid or received, are rea-sonable and fair and do not involveoverreaching on the part of anyperson concerned, and the. proposedtransaction is consistent with thepolicy of the investment company andwith the general purposes of the Act.

Applicants represent that the termsof the proposed transaction are rea-sonable and fair and do not involveoverreaching on the part of anyperson concerned. The price was deter-mined on the basis of arms' length ne-gotiation and represents and increaseover the amount the Buyers initiallyoffered. The proposed transaction is

consistent with the policy of Scudder,since it represents disposition of a se-curity which has not shown the cap-ital appreciation in the past and doesnot presently, have, in the judgment.of management, the capital apprecia-tion potential for the future whichScudder's investment policy requires itto seek. Applicants represent that theproposed transaction is consistantwith the general purposes of the Actbecause it is in the best Interest of in-vestors in Scudder and is designed toobtain an investment result whichScudder does not believe it could becertain of achieving in a different typeof transaction.

Notice is further given that any in-terested person may, not later thanMarch 20, 1978, at 5:30 p.m., submit tothe Commission in writing a requestfor a hearing on the matter accompa-nied by a statement as to the nature ofhis interest, the reason for such re-quest, and the issues, if any, of fact orlaw proposed to be controverted, or hemay request that he be notified if theCommission shall order a hearingthereon. Any such communicationshould be addressed: Secretary, Securi-ties and Exchange Commission, Wash-ington, D.C. 20549. A copy of such re-quest shall be served personally or bymail upon Applicant(s) at theaddress(es) stated above. Proof of suchservice (by affidavit, or in case of anattorney-at-law, by certificate) shall befiled contemporaneously with the re-quest. As provided by Rule 0-5 of therules and regulations promulgatedunder the Act, an order disposing ofthe application will be issued as ofcourse following said date unless theCommission thereafter orders a hear-ing upon request or upon the Commis-sion's own motion. Persons who re-quest a hearing, or advice as to wheth-er a hearing is ordered, will receiveany notices and orders issued in thismatter, including the date of the hear-ing (if ordered) and any postpone-ments thereof.

For the Commission, by the Divisionof Investment Management, pursuantto delegated authority..

GEORGE A. FITZSIMMIONS,Secretary.

EFR Doc. 78-5347 Filed 2-28-78; 8:45 am]

[8010-01] -

[Release No. 10130; 812-4220]

SENTRY FUND, INC. AND SENTRY EQUITYSERVICES, INC.

Application for an Order of Exemption

FEBRUARY 22, 1978.Notice is hereby given that Sentry

Fund, Inc. (the "Fund"), an open-enddiversified management investmentcompany registered under the Invest-ment Company Act of 1940 (the

"Act"), and Sentry Equity Services,Inc. ("Equity Services"), the Fund'sprincipal underwriter (collectively,"Applicants"), 1800 North Point Drive,Stevens Point, Wis. 54481, have filedan application on November 14, 1977and an amendment thereto on Janu-ary 23, 1978, pursuant to section 6(c)of the Act for an order exempting Ap-plicants from the provisions of section22(d) of the Act to the extent neces.sary to permit the, purchase of sharesof the Fund from the proceeds of cer-tain insurance contracts, as definedherein, issued by Sentry Life Insur-ance Co. and its subsidiaries, SentryLife Insurance Co. of New York andPatriot General Life Insurance Co.,without a sales charge but subjectonly to a $20 administrative fee. All in-terested persons are referred to theapplication on file with the Commis-sion for a statement of the facts andrepresentations therein, which aresummarized below.

All of the issued and outstandingshares of Equity Services are owned bythe Sentry Corp., a subsidiary of andholding company for Sentry Insurancea mutual company. The Sentry Corp.organized the Fund in 1969 and owns,either directly or through its subsid-iaries, all of the issued and outstand-ing shares of Sentry Investment Man-agement, Inc., the Fund's investmentadviser, and of Sentry Life InsuranceCo., Sentry Life Insurance Co. of NewYork and Patriot General Life Insur-ance Co.

Sentry Life Insurance Co. is a stockinsurance company licensed to writelife insurance, annuities, and accidentand health insurance in all fifty statesexcept New York, In the District ofColumbia, in Hong Kong and InGuam. Sentry Life Insurance Co. ofNew York Is a stock insurance compa.ny licensed to write life insurance, an.nuties, and accident and health Insur-ance in the State of New York. PatriotGeneral Life insurance Co. is a stockinsurance company licensed to writelife insurance in the state of Massa.chusetts, Nevada, New Hampshire, andUtah.

Applicants offer shares of the Fundto the public at a price based upon netasset value plus a sales charge thatvaries with the quantity of securitiespurchased. The sales charge, ex-pressed as a percentage of the publicoffering price, ranges from 8 percenton sales of less than $10,000 to 1 per-cent on sales of $500,000 or more. Ap-plicants propose to sell Fund shares toinsureds of Sentry Life Insurance Co.,Sentry Life Insurance Co. of NewYork and Patriot General Life Insur-ance Co., and/or their beneficiarieswithout a sales charge but subjectonly to a $20 administrative fee wherepayment for such Fund shares is madewith proceeds of insurance contractsIssued by said companies, Applicants


NTE8317

have defined "proceeds of insurancecontracts" to mean: death benefitsunder life policies, the maturity valu6of endowment contracts, the cash (sur-render) value of fixed-dollar like insur-ance and annuity contracts, and lumpsum cash options available to benefi-ciaries.

Section 22(d) of the Act provides, inpart, that no registered investmentcompany shall sell any redeemable se-curity issued by it to any personexcept either to or through a principalunderwriter for distribution or at acurrent public offering price describedin the prospectus, and, if such class ofsecurity, is being currently offered tothe public by or through an under-writer, no principal underwriter ifsuch security and no dealer shall sellany such security to any person excepta dealer, a principal underwriter, orthe issuer, except at a current publicoffering price described in the pro-spectus.

Applicants state that elimination ofthe sales charge for purchases madewith insurance proceeds would recog-nize that the payments giving rise tothe insurance proceeds would havebeen previously subjected to salescharges and would avoid cumulationof sales charges. Applicants furthercontend that such elimination is ap-propriate since no advertising or othersales effort is required where Fundshares are purchased with insuranceproceeds and that the opportunity topurchase Fund shares at a reducedcharge will afford insureds and theirbeneficiaries additional flexibility withrespect to their insurance proceeds.

Applicants state that the proposed$20 administrative fee is intended topay for review and underwriting of theinsured's (beneficiary's) application,coding,. establishing a Fund account,preparation of a deposit remittance,,production and mailing of a confirma-tion and setting up of a file folder andrepresents Equity Services' costs or ap-.proximate costs involved in such trans-actions. Applicants further state thatno part of the proposed $20 fee will beused to compensate any salesman normay any part be properly deemed asales load, that if the proposed $20 feeshould result in a profit, which is notanticipated, no part thereof will beused as a sales load or to compensateany salesman and that if in the futureApplicants anticipate that the pro-posed $20 fee will result in a profit,downward adjustment will be made sothat the fee does not exceed anticipat-ed cost or approximate cost. Appli-cants state that in no event will the in-sured or beneficiary purchasing theFund shares incur a charge exceedingthe normal sales load and that thevast majority of individuals who pur-chase Fund shares with their insur-ance proceeds will achieve substantialsavings.

Section 6(c) of the Act provides. inpart, that the Commission may condi-tionally or unconditionally exemptany person, security, or transaction, orany class or classes of persons, securi-ties or transactions, from any provi-sion or provisions of the Act or anyrule or regulation thereunder. if andto the extent that such exemption Isnecessary or appropriate In the publicinterest and consistent with the pro-tection of investors and the purposesfairly intended by the policy and pro-visions of the Act.

Notice is further given that any in-terested person may, not later thanMarch 20, 1978, at 5:30 p.m., submit tothe Commission in writing a requestfor a hearing on the matter accompa-nied by a statement as to the nature ofhis interest, the reason for such re-quest, and the issues, if any, of fact orlaw proposed to be controverted, or hemay request that he be notified if theCommission shall order a hearingthereon. Any such communicationshould be addressed: Secretary, Securi-ties and Exchange Commission, Wash-ington, D.C. 20549. A copy of such re-quest shall be served personally or bymail upon Applicant(s) at theaddress(es) stated above. Proof of suchservice (by affidavit, or in case of anattorney-at-law, by certificate) shall befiled contemporaneously with the re-quest. As provided by Rule 0-5 of the-Rules and Regulations promulgatedunder the Act, an order disposing ofthe application will be issued as ofcourse following said date unless theCommission thereafter orders a hear-ing upon request or upon the Commis-sion's own motion. Persons who re-quest a hearing, or advice as to wheth-er .a hearing is ordered, will receiveany notices and orders issued In thismatter, including the date of the hear-ing (if ordered) and any postpone-ments thereof.

For the Commission, by the Divisionof Investment Management, pursuantto delegated authority.

GEORGE A. FrTzsrumoNs,Secretary.

(FR Doc. 78-5348 Fled 2-28-78:8:45 am)

[8010-Oi[Release No. 10123. 812-42051

VANCE, SANDERS MUNICIPAL BOND FUND,LTD. AND VANCE, SANDERS & CO., INC.

Filing of Application for Order of Exemption

FEBRUARY 17, 1978.Notice is hereby given that Vance.

Sanders Municipal Bond Fund. Ltd. faCalifornia Limited Partnership)("Fund"), registered under the Invest-ment Company Act of 1940 (the"Act") as an open-end, diversifiedmanagement investment company.and Vance, Sanders & C., Inc. ("Vance

Sanders"; referred to collectively withthe Fund as "Applicants"), AdvisorGeneral Partner and investment advis-er of, and principal underwriter for.the Fund. One Beacon Street, Boston,Mass. 02108, filed an application onOctober 13, 1977, and amendmentsthereto on January 4, 1978, and Febru-ary 14, 1978, requesting an order ofthe Commission pursuant to section6(c) of the Act exempting the Fundand its general partners from the pro-visions of (1) section 2(a)(19) of theAct to the extent that the Funds gen-eral partners would otherwise bedeemed to be "interested persbns" ofthe Fuhid or its Advisor General Part-ner solely because they are partners inthe Fund, and (2) section 15(c) of theAct so that the Director General Part-ners will not be deemed to be partiesto the Fund's investment advisory con-tract solely by reason of their beingparties to the Fund's partnershipagreement. All interested persons arereferred to the application on file withthe Commission for a statement of therepresentations contained therein,which are summarized below.

Applicants state that the Fund wasorganized as a limited partnershipunder the Uniform Limited Partner-ship Act of California and propose tooperate as an open-end investmentcompany with the objective of provid-ing investors as high a level of currentIncome exempt from federal incometaxes as is consistent with the preser-vation of capital. They further statethat the Fund will seek to achieve thisobjective by investing in a diversifiedportfolio of obligations, the interestfrom which is exempt from federalincome tax. According to the applica-tion, rulings have been issudd by theInternal Revenue Service stating thatthe Fund will be taxed *as a partner-shfp and not as an association taxableas a corporation, and that theincomeof the Fund exempt from federalincome taxes would, retain its tax-exempt character when properly all5-cable to the partners. Although theInternal Revenue Service has notruled upon whether the particular al-locations proposed by Applicants willbe given effect for federal income taxpurposes, Applicants state that theyhave been advised by cousel that theallocation of income they propose isproper.

Applicants further state that: (1) thegeneral partners of the Fund will con-sist of Director General Partners andan Advisor General Partner; (2) onlyindividuals may serve as Director Gen-eral Partners; (3) the Fund will bemanaged solely by the Director Gener-al Partners except for those specificactivities of the Fund for which re-sponsibility is given to the AdvisorGeneral P-,rtner; and (4) the DirectorGeneral Partners will perform thesame functions as directors of incorpo-


NOTICES

NOTICES

rated investment coml~anies. Appli-cants state that the Advisor GeneralPartner is excluded from participationin the management of the Fund; how-ever, the Advisor General Partner ischarged with certain responsibilities,including managing the investment ofFund assets and administering its af-fairs subject to the supervision of theDirector General Partners. Applicantsfurther state that in return for theAdvisor General Partner assuming theresponsibilities assigned to it, the part-nership agreement provides that suchpartner will be allocated 6 percent ofthe daily gross income of the Fund(excluding gains or losses), but in noevent shall such amount exceed, on anannual basis, 0.3 of 1 percent of theFund's average net assets. k

Included as exhibits to the applica-tion are opinions of counsel that: (1)the Fund is duly organized and validlyexisting as a limited partnership underthe laws of the State of California,and (2) the division of managerialfunctions among the general partnersin the manner proposed is lawful.

According to the application, (1) theDirector General Partners act only bymajority vote and are subject to elec-tion and removal by vote of the part-ners; (2) in the event no Director Gen-eral Partner remains, it is the respon-sibility of the Advisor General Partnerto promptly call a meeting of thelimited partners ("Limited*Partners"),to be held within 120 days of the datethe last Director General Partnerceased to act in such capacity, for thepurpose of determining whether toelect to continue the business of theFund and, if the business is to be con-tinued, the election of Director Gener-al Partners; and (3) for the period oftime during which no Director Gener-al Partner remains, the Advisor Gen-eral Partner is permitted to engage inthe management, conduct and oper-ation'of the business of the Fund tothe same extent as a Director General

G Partner. Applicants state that the Ad-visor General Partner shall be subjectto election and removal by vote of thepartners and, in addition, may be re-moved as the Advisor General Partnerupon 60 days' written notice by vote ofa majority of the Director GeneralPartners or by vote of the partners.

According to the application, (1) theFund'S Limited Partners have norights to control the Fund's business,but may exercise certain rights andpowers of a Limited Partner under thepartnership agreement, includingvoting rights, and (2) the partnershipagreement authorizes Limited Part-ners to exercise voting rights on cer-tain matters, including the right toelect or remove general partners. Ap-plicants state that it is the opinion ofCalifornia counsel that the existenceor exercise of these voting rights doesnot subject the Limited Partners to li-

ability as general partners under theUniform Limited Partnership Act ofCalifornia. However, Applicants fur-ther state that it is possible that be-cause of such voting rights the Limit-ed Partners might be found to be sub-ject to liability as general partners bythe courts of another state. In thisregard, the Applicants state (1) that, ifa Limited Partner is sued to satisfy anobligation of the Fund, the Fund will,upon notice of such suit by the Limit-ed Partner, either satisfy such obliga-tion or, if it believes such suit is with-out merit, -undertake the defense ofsuch suit, and (2) that the Fund in-tends to include in all material con-tracts a provision limiting the claimsof creditors to Fund assets. Applicantshave submitted as an exhibit to theapplication an opinion of counsel stat-ing that if a Limited Partner is held tobe liable as a general partner, has sat-isfied liabilities of the Fund in excessof his required capital contribution,and if the assets and insurance of theFund are insufficient to reimburse theLimited Partner, the partnershipagreement provides a basis uponwhich the Limited Partner would haverecourse against the general partners.

Applicants state that the entire in-terest of the partners will be dividedinto Shares of Partnership Interest("Shares") which will be offered to in-

.vestors, and that, upon the sale of aShare to a purchaser who is not aLimited Partner, and upon receipt of asigned partnership authorization, in-cluding a power of attorney requiredof all Limited Partners, the purchaserwill become a Limited Partner uponthe filing of an amendment to thepartnership agreement. According tothe application, the Director GeneralPartners agree to process such amend-ments weekly, and daily when neces-sary. Applicants further state that (1)the remainder of the Fund's incomeafter the allocation of income to theAdvisor General Partner, referred toabove, as well as other items of gain,loss, deductions and credits, will be al-located equally among the outstandingShares of the Fund; (2) all Shares willhave equal rights and one vote eachon all matters to be voted upon bypartners; and (3) a Limited Partnercan assign his Shares, in whole orpart, provided the assignee agrees tobecome a substituted Limited Partner,the Director General Partners consentto such assignment and substitution,and the assignee executes the neces-sary documents to become a substitut-ed -Limited Partner.

According to the application (1) as acondition of the granting 'of the rul-ings noted above, the Internal Rev-enue Service required that at all timesthe general partners must have in theaggregate a one percent interest in allFund items of income, gains andlosses; (2) the general partners have

met this condition by purchasing inthe aggregate one percent of the out-standing Shares of the Fund; and (3)Vance Sanders undertakes that at alltimes while serving as Advisor GeneralPartner it will own one percent of theFund's outstanding Shares and willnot wihdraw as Advisor General Part.ner except on two year's notice. VanceSanders also undertakes that it willstand for election for Advisor GeneralPartner at each election so long as itsduties and obligations as Advisor Gen-eral Partner have not been terminat-ed, and that in the event that theFund terminates such obligations andduties, Vance Sanders will remain as ageneral partner and continue to ownone percent of the outstanding Sharesfor one year or until a successsor gen.eral partner is appointed, whichever Isearlier. The Fund undertakes that anysuccessor Advisor General Partner willagree to the same undertakings asVance Sanders. Applicants agree thatany exemptive order issued hereinmay be conditioned upon the contin-ued effectiveness of such undertak-ings.

On October 4, 1976, the Tax ReformAct of 1976 amended Subchapter M ofthe Internal Revenue Code, effectivefor taxable years beginning after De-cember 31, 1976, to enable investmentcompanies in corporate form to passthrough tax-exempt income to theirshareholders. The Fund asserts, however, that the following desirable con-sequences can be achieved in partner-ship form, but not in corporate form:

(1) Although, as noted above, the In-ternal Revenue Service has not ruledthat the allocation of income Appli-cants propose will be given effect forfederal income tax purposes, the Fundbelieves that the income received byVance Sanders is non-taxable if tax-exempt to the partnership, enablingthe advisory fee to be substantiallylower than fees currently being paidby almost all corporate municipalbond funds;

(2) As a partnership the Fund is In amore flexible position because it wouldnot have to comply with the percent-age limitations on investments andincome contained in Subchapter M ofthe Internal Revenue Code, as would acorporate municipal bond fund;

(3) If any portion of the partner-ship's income is tax-exempt in a stateif received directly, it may be tax-exempt to the partner because, nor-mally, under state law a partner Istaxed on his allocated share of part-nership income as though received di-rectly; and

(4) A partnership normally is notsubject to state taxes; the Fund ex-pects to receive rulings from (a) theDepartment of Revenue of the Stateof California to the effect that theFund is not subject to any income taxin the State of California, and (b) the


8318

NOTICES

Massachusetts Department of Corpo-rations and Taxation to the effectthat neither the Fund nor non-resi-dent holders of Shares, by reason oftheir being holders of Shares, will besubject to Massachusetts income tax.

Section 10(a) of the Act providesthat no registered investment compa-ny shall have a board of directorsmore than 60 percent of the membersof which are persons who are "inter-ested persons" of such registered com-pany. Section 2(a)(12) of the Act de-fines "director" to include any directorof a corporation or any person per-forming similar functions with respectto any organization, whether incorpo-rated or unincorporated.

Section 15(c) of the Act provides,inter alia, that it shall be unlawful forany registered investment companyhaving a board of directors to enterinto, renew, or perform any contractor agreement whereby a person under-takes to serve or act as investment ad-viser of such company, unless theterms of such contract or agreementand any renewal thereof have been ap-proved by the vote of a majority of di-rectors who are not parties to suchcontract or agreement or interestedpersons of any such party.

Section 2(a)(19)(A) of the Act pro-vides, in part, that an "interestedperson" of another person, when theother person is an investment compa-ny, means (1) any affiliated person ofsuch investment company, and (2) anyinterested person of any investmentadviser or principal underwriter forsuch company. Section 2(a)(19)(B) ofthe Act provides, in part, that an "in-terested person" of another person,when the other person is an invest-ment adviser or principal underwriterfor any investment company, meansany affiliated person of-such invest-ment adviser or principal underwriter.Section 2(a)(3)(D) of the Act provides,in part, that an "affiliated person" ofanother person means any partner orco-partner of such person.

Applicants submit that the relation-ship of the Director General Partnersto the Fund is essentially identical tothe relationship of directors to a cor-porate investment company. Theystate that, nevertheless, the provisionsof section 2(a)(3) of the Act wouldmake all Director General Partners af-filiated persons of the Advisor GeneralPartner, with the result that the Di-rector General Partners would bedeemed interested persons of theFund and its Advisor General Partnerunder section 2(a)(19) of the Act.

Applicants, to permit compliancewith sections 10(a) and 15(c) of theAct, have requested that the Fund andits general partners be exempted fromthe provisions of section 2(a)(19) tothe extent that the general partnerswould otherwise be interested personsof the Fund or its Advisor General

Partner solely because they are gener-al partners of the Fund, a limited part-nership in which the Fund's invest-ment adviser and principal underwrit-er, Vance Sanders. Is also a generalpartner. Applicants assert that sincesection 2(a)(19) excludes from thedefinition of interested person of aninvestment company those individualswho would be interested persons solelybecause they are directors or ownersof securities of an investment compa-ny, and since the Advisor GeneralPartner is excluded from participationin the management of the Fund, It Isconsistent with the purposes fairly In-tended by the policy and provisions ofthe Act to grant the requested exemp-tion from section 2(a)(19).

Applicants state that since the Di-rector General Partners who fulfillthe function of non-interested direc-tors of necessity have signed the part-nership agreement and the partner-ship agreement provides for compen-sation to Vance Sanders for managingthe investment and reinvestment ofFund assets, it could be contendedthat the Director General Partnersare parties to the advisory contract oragreement. Applicants have requestedan exemption from the provisions ofsection 15(c) of the Act so that the Di-rector General Partners will not bedeemed to be parties to the advisorycontract solely by reason of theirbeing parties to the partnership agree-ment. Applicants state that all of theprovisions required to be included inan advisory contract by section 15 ofthe Act are included in the partner-ship agreement, which is a writtenagreement, and that the partnershipagreement will be submitted to thepartners (i.e., shareholders) and Direc-tor General Partners for approval.

Section 6(c) of the Act provides, inpart, that the CommisIon may, uponapplication, exempt any person, secu-rity, or transaction, or any class orclasses of persons, securities, or trans-actions, from any provision or provi-sions of the Act or rules thereunder, ifand to the extent that such exemptionis necessary or appropriate n thepublic interest and consistent with theprotection of investors and the pur-poses fairly intended by the policy andprovisions of the Act.

In addition to the undertakings sum-marized above, Vance Sanders under-takes that it will not request, and thePund undertakes that It will not grant,for a period of three years, an increasein either the percentage of income al-located to Vance Sanders, or in thelimitation on such allocation of 0.3percent of average net assets on anannual basis. The Applicants also un-dertake that if the tax treatment toVance Sanders with respect to eitherthe income received, or expenses In-curred, by Vance Sanders while actingas Advisor General Partner Is adverse-

ly affected and the Fund is willing, be-cause of such change, to recommendto shareholders an increase in theincome to be allocated to Vance Sand-ers so that there is no longer any sig-nificant advantage to the partnershipform, Vance Sanders will recommendto the Fund, and the Fund will recom-mend to Its shareholders, that theform of the Fund's organization bechanged from a partnership to a cor-poration. Vance Sanders also under-takes that if the tax treatment of theincome received or expenses incurredwhile acting as Advisor General Part-ner is not adversely affected, VanceSanders will not request or accept anincrease in such income unless, aftersuch increase, the income allocated toIt for acting as Advisor General Part-ner Is significantly below its fees re-ceived for acting as investment adviserto other investment companies.

The Fund undertakes that, prior toa public offering of Shares, it will beadded as one of the named assureds inan errors and omissions policy, up to amaximum amount of $5 million (witha $100,000 deductible for any oneclaim) and will be a named assured ina brokers' indemnity bond in an aggre-gate amount of $10 million. The Fundundertakes that It will be covered bysuch insurance and that It will take noaction to cancel such policies or, ifsuch policies are cancelled by the in-surance companies, It will obtain com-parable insurance.

Applicants agree that any exemptiveorder granted may be conditionedupon the continued effectiveness ofthe above-described undertakings.They submit that the granting of therequested exemptions is necessary andappropriate in the public interest andconsistent with the protection of in-vestors and the purposes fairly intend-ed by the policy and provisions of theAct.

Notice Is further given that any in-terested person may, not later thanMarch 14, 1978, at 5:30 pan., submit tothe Commission in writing a requestfor a hearing on the matter accompa-nied by a statement as to the nature ofhis interest, the reason for such re-quest, and the issues, if any, of fact orlaw proposed to be controverted, or hemay request that he be notified if theCommission shall oraer a hearingthereon. Any such communicationshould be addressed: Secretary, Securi-ties and Exchange Commission, Wash-ington, D.C. 20549. A copy of such re-quest shall be served personally or bymall upon Applicants at the addressstated above. Proof of such service (byaffidavit or, in the case of an attorney-at-law, by certificate) shall be filedcontemporaneously with the request.As provided by Rule 0-5 of the Rulesand Regulations promulgated underthe Act, an order disposing of the ap-plication will be issued as of course fol-


8319

NOTICES

lowing said date unless the Commis-sion thereafter orders a hearing uponrequest or upon the Commission's ownmotion. Persons who request a hear-ing, or advice as to whether a hearingIs ordered, will receive any notices andorders issued in this matter, includingthe date of the hearing (if ordered)and any postponements thereof.

By the Commission.

GEORGE A. PITzsInoNs,Secretary.

[FR Doc. 78-5349 Filed 2-28-78; 8:45 am]

[4710-021DEPARTMENT OF STATE

Agency for International DevelopmentPROVISION OF PESTICIDES TO LIBERIA,

AFRICAIntent To Waive Certain Requiroments

AGENCY: Agency for InternationalDevelopment, State.ACTION: Notice of Intent to WaiveCertain Requirements to allow pro-curement of Pesticides to ControlCocoa and Coffee Pests and Diseasesin Liberia.SUlMARY: The Agency for Interna-tional Development intends to waivecertain requirements for provision ofpesticides as set forth in Interim Pesti-cide Procedures, the "Interim Regula-tions", published in the FEDERAL REG-ISTER on January 7, 1976 (41 FR 1297).This waiver will be made pursuant toSection (a) of the regulations.DATES: Comments on this proposedaction must be received within twenty(20) days after publication in the 1)m-ERAL REGISTER.FOR FURTHER INFORMATIONCONTACT:

Dr. Frederick Whittemore, Room413F, Rosslyn Plaza, Arlington, Va.20523, 703-235-1497. Mail address,Office of Agriculture, AID, Depart-ment of State, .Washington, D.C.20523.

SUPPLEMENTARY INFORMATION:The following table sets forth the pes-ticides, the crops on which they will beused, and the target pest or disease.

Pesticide Crop Pest/disease

Cuprous oxide ............ Cocoa ............. Black poddisease.Do ........................... Coffee ............ Coffee berrydisease.

Lindane ........................ C ocoa ............. Cocoa mirlds.

BACKGROUND

The Agency for International Devel-opment (A.I.D.) negotiated a loanagreement with the Liberian govern-ment in November, 1975. The purpose

of the $5 million to be loaned over a 5year period was to increase rice,coffee, and cocoa production of smallfarmers in Lofa County. Experience inLiberia and elsewhere in the coffeeand cocoa growing areas of WestAfrica indicates that unless black podand miids on cocoa, and coffee berrydisease on coffee, are controlled withsuch insecticides and fungicides as arebeing proposed in this project, produc-tivity remains marginal. The use ofsuch pesticides is essential for the in-creased production of coffee and cocoaby small farmers, which is the objec-tive of the loan agreement.

A.I.D. INTERIM PESTICIDE PROCEDURES

The Interim Pesticide Procedures,which clearly apply to the proposedprocurement, provide that A.I.D. willnot finance pesticides that have notbeen registered by the EnvironmentalProtection Agency (EPA) for the spe-cific uses for which procurement is in-tended. However, A.I.D. may financethe procurement of unregistered pesti-cides if they are to be used on cropsand associated pests not grovm orfound in the United States and if thedetermination is made by the Adminis-trator of A.I.D. that the benefits to bederived from their use outweigh po-tential adverse effects and no prefer-able alternatives are available.

The administrator has tentativelydetermined that the benefits of theprocurement and use of these pesti-cides outweigh the potential adverseeffects and that no preferable alterna-tives are available.

BASIS FOR DETER=INATION

Cuprous Oxide (Perenox). This fun-gicide is registered for general use byEPA. The environmental impact of itsuse in the United States is consideredto be minimal by EPA. It is of a verylow order of acute toxicity to humansand is extensively used on a variety offood crops, including fresh fruits andvegetables, many of which are fre-quently consumed without furtherprocessing. Although the climatic andsociological conditions under whichthese pesticides will be used in Liberiadiffer greatly from U.S. conditions, cu-prous oxide has been widely used, withno known instances of any related tox-icological or environmental problems,throughout coffee and cocoa growingareas of West Africa for the control ofcoffee and cocoa diseases.

Lindane (Gamma BHC). On Febru-0ty 17, 1977, subsequent to the pro-posed use of lindane in the relevantproject paper, EPA published a FEDER-AL REGISTER Notice (42 FR 9816-23) ofa Rebuttable Presumption AgainstRegistration and Continued Registra-tion of Pesticide Products ContainingLindane on the basis of laboratory evi-,dence indicating that lindane causedtumors in laboratory animals and in-

terferes with their growth, matura-tion, and reproductive capacity, Evi-dence is also available that lindanepresents an unreasonable hazard toaquatic organisms. However, EPA doesnot consider the above evidence to besufficient to warrant Issuance of aNotice of Intent to cancel the registra-tion of lindane products at this time.

Aware of this information, A.I.D.considered two substitutes proposedby the Ghana Cocoa Research Insti-tute, propoxur and dloxacarb. Howev-er, these two carbamates present anacute toxic hazard to human users,since they inhibit the enzyme cholin-esterase and can result in intoxication,caused by over exposure, to workers.The acute human toxicological haz-ards associated with the use of lindaneare relatively slight when comparedwith propoxur and dioxacarb.

The proposed use of lindane ongrowing cocoa in Liberia does not in-volve direct application to the aquaticenvironment. Farmers will be briefedon this hazard, which Is associatedwith pesticide drift. Additionally, lin-dane and benzene hexachloride (ofwhich lindane is the gamma isomer)have been used extensively in Africafor the past twenty-five years, for theprotection of stored grains and otherpurposes, as well as on cocoa. Sincethe crop in the project area Is estimat-ed to be less than 0.3 percent of thetotal African crop, the incrementalrisk associated with the use of lindaneon this extremely small proportion ofthe total crop, much of which 4s andhas been protected by lindane or ben-zene hexachloride, is considered to beinsignificant when compared with thecumulative exposure which has al-ready been, and will continue to be,experienced by persons using this ma-terial in Africa and persons consumingtoxicologically insignificant amountsof lindane residues In cocoa and choco-late products throughout the world,

Project measures are planned tominimize hazards related to pesticidehandling which will result in muchbetter monitoring and controlling ofchemical use under this project thanobtains elsewhere In Liberia. Thesemeasures include:

(1) Regulation of pesticide distribu.tion, storage, and use by officials;

(2) Conducting regular training pro-grams for extension workers and farm.ers on appropriate application proce-dures and the use of safety equipment;

(3) Application of field pesticides di-rectly by project officials initially anduntil farmers have sufficient knowl-edge and experience to assume this re-sponsibility.

For each of the pesticides to be usedIn this project, there is no preferablealternative available. Experiencethroughout the coffee and cocoa grow.ing areas of West Africa indicates thatunless black pod and minds on cocoa

FEDERAL REGISTER, VOL 43, NO. 41-WDNESDAY, MARCH 1, 1978

8320

NOTICES

and coffee berry disease are controlledwith such pesticides, productivity re-mains marginal. Their use is thereforeessential for the production of eco-nomically profitable crops. Use ofthese pesticides can thus be expectedto Increase appreciably the income ofsmall farmers producing coffee andcocoa in Liberia.

The incremental added risks associ-ated with the use of these pesticides inthis project are considered to be negli-gible and to be outweighed by thebenefits of using them on coffee andcocoa.

The EPA Registration Division ofEPA has been consulted and its con-currence in the intended. course ofaction has been obtained.

This publication constitutes noticeof the impending final approval of thisdetermination by the Administrator,A.I.D.

-Dated: February 13, 1978.

GoLER T. BUTcHER,AssistantAdministrator

forAfrica.(FR Doe. 78-5335 Filed 2-28-78; 8:45 am]

[4710-021 - J(Delegation of Authority No. 127]

MISSION DIRECTOR AND DEPUTY -MISSIONDIRECTOR

United States Agency for InternationalDevelopment/Egypt

Pursuant to the authority delegatedto me by AID Delegation of AuthorityNo. 23, dated December 28, 1962, asamended. ;t hereby delegate the follow-ing functions to the Mission Directorand Deputy Mission Director, USAID/Egypt, with respect to projects pro-posed to be conducted in Egypt undersection 204 of Title II of the Agricul-tural Trade Development and Assis-tance Act of 1954, as amended (Pub. L.480):

(1) Determining the agencies, includ-ing intergovernmental organizations,through which and the manner, terms,and conditions upon which, transfersof Egyptian pounds obtained withfunds authorized under section 204shall be made in order to meet costsdesigned to assure that commoditiesmade available under Title II are usedto carry out more effectively the pur-,pose for which such commodities aremade available, or to promote commu-nity and other self-help activities de-signed to alleviate the causes of theneed for such assistance, (except forthe personnel and administrative costs

.of cooperating sponsors, distributingagencies, and recipient agencies, andthe costs of construction or mainte-nance of any church-owned or operat-ed edifice or any other edifices to beused for sectarian purposes); and (2)determining that such funds are sup-

plemental to. and not In substitutionfor, funds normally available for suchpurposes from other non-UnitedStates sources.

The exercise of such authority shallbe in accordance with section 204 ofPub. L. 480 and AID Handbook Nine,and Is subject to the following limita-tions:

(a) No individual project shall be ap-proved which would obligate U.S.-owned local currency exceeding theequivalent of U.S. $100,000; and thetotal amount of all projects approvedin any fiscal year shall not exceed thelocal currency equivalent of U.S.$1,000.000.

(b) No project shall be approvedwhich is not recommended and spon-sored by qualified and experienced co-operating sponsors operating Title IIfood assistance programs in Egypt

(c) Use of this authority in eachfiscal year is subject to the availabilityof funds and prior approval by AID/Washington and the Interagency StaffCommittee of the total amount oflocal currencies proposed for utliza-tion in that fiscal year.

This Delegation of Authority maynot be redelegated.

This Delegation of Authority is ef-fective immediately.

Dated: February 3, 1978.JOSEPH C. WHEELER,

AssistantAdministrator,Bureau forNearEasL

[FR Doe. 78-5336 Fied 2-28-78; 8:45 am]

[4710-021

[Delegation of Authority No. 128]

MISSION DIRECTOR AND DEPUTY MISSIONDIRECTOR

United States Agency for IntrnatlonclDevelopment/Egypt

Pursuant to the authority delegatedto me by A.I.D. Delegation of Author-ity No. 23, dated December 28, 1962. asamended, I hereby delegate to theMission Director and Deputy Mission.Director, USAID/Egypt, the function,pursuant to section 204 of Title II ofthe Agricultural Trade Developmentand Assistance Act of 1954, as amend-ed (Pub. L. 480), of signing local cur-rency project agreements or other ap-propriate documents with cooperatingsponsors to effect the obligation andexpenditure of Egyptian pounds accru-ing under Title I of Pub. L. 480 andpurchased from the U.S. Treasuryunder the authority of section 204 ofPub. L. 480.

The exercise of such authority shallbe in accordance with section 204 ofPub. L. 480 and AID Handbook Nine,and is subject to the limitations that:

(1) No local currency project agree-ment shall be signed which would obli-

gate U.S.-owned local currency exceed-ing the equivalent of U.S. $100,000;and the total amount of all local cur-rency project agreements signed inany fiscal year shall not exceed thelocal currency equivalent of US.$1.000,000,

(2) Use of this authority in eachfiscal year is subject to the availabilityof funds and prior approval by AID/Washington and the Interagency StaffCommittee of the total amount oflocal currencies proposed for utiliza-tion In that fiscal year.

This Delegation of Authority maynot be redelegated.

This Delegation of Authority is ef-fective immediately.

Dated: January 26, 1978.KATHLE S. BITERX&NN,

CoordinatorOffice of FoodforPeace

CF Doc. 78-5337 Flied 2-28-78; 8:45 am]

[4910-57]

DEPARTMENT OF TRANSPORTATION

Urban Mass Transportation Administration

SPECIAL GUIDELINES FOR RAIL TRANST

Equipment Procurements

On December 15. 1976, the De- part-ment of Transportation. Urban MassTransportation Administration(UMTA) published In the FrnraM.REGLSTm a document proposing guide-lines for certain contract terms andconditions to be used for the procure-ment of rail transit equipment pur-chased with UMTA capital grantfunds (41 FR 54825).

Pursuant to the notice accompany-ing this document. UMIA held apublic hearing on January 12, 1977, toreceive comments on the proposedguidelines. Interested persons weregiven until February 11, 1977, tosubmit written comments. The noticealso provided that after the meetingwas held and all the information sub-mitted was reviewed, UMTA wouldprepare a final version of these guide-lines to be promulgated through ap-propriate channels.

UMTA has given careful consider-ation to all comments received with re-spect to the proposed guidelines, andhas revised and consolidated several ofthe proposed guidelines to respond tocomments received or to clarify theirintended meaning. Therefore, UMTAnow issues for publication as a supple-ment to its third-party contract re-quirements set forth in the ExternalOperating Manual an addendum con-sistng of the following sixteen guide-lines specifically applicable to railtransit equipment procurements: Au-thority of the Engineer or OtherAgent of the Buyer, Changes, Title,


8321

NOTICES

Risk of Loss, Acceptance, Indemnifica-tion, Liquidated Damages, Termina-tion for Default, Excusable Delays,Stop Work Orders, Changes in Laws orRegulations, Approval of Subcontrac-tors, Inspections and Tests, Disputesand Claims, Buyer's Pre-Bid AppealProcedure, and Exemptions fromGuidelines.

Because these guidelines relate togrants, they may be made effective infewer than 30 days following notice oftheir issuance by UMTA.

Interested persons may obtain copiesof these "Special Guidelines for RailTransit Equipment Procurements"and background information concern-ing this matter by writing to the Di-rector, Office of Public Affairs, UrbanMass Transportation Administration,400 7th Street SW., Room 9330, Wash-ington, D.C. 20590

Issued in Washington, D.C., Febru-ary 23, 1978.

RICHARD S. PAGE,Urban Mass Transportation

Administrator.[FR Doe. 78-5386 Filed 2-28-78; 8:45 am]

[4810-35]

DEPARTMENT OF THE TREASURY

Fiscal Service

[Dept. Circ. 570, 1977 Rev., Supp. No. 11]

SURETY COMPANIES ACCEPTABLE ONFEDERAL BONDS

A certificate of authority as an ac-ceptable surety on Federal bonds ishereby issued by the Secretary of theTreasury to the following companyunder Sections 6 to 13 of Title 6 of theUnited States Code. An underwritinglimitation of $40,000 has been estab-lished for the company.

Name of Company, Business Address,and State in Which Incorporated

Fritz Insurance Company

2150 Landmeler Road

Elk Grove Village, Illinois 60007

New Mexico

Certificates of authority expire onJune 30 each year, unless sooner re-voked, and new certificates are issuedon July 1 so long as the companiesremain qualified (31 CFR Part 223). Alist of qualified companies is publishedannually as of July 1 in DepartmentCircular 570, with details as to under-writing limitations, areas in which li-censed to transact surety business andother information. Copies of the circu-lar, when Issued, may be obtainedfrom the Audit Staff, Bureau of Gov-ernment Financial Operations, De-partment of the Treasury, Washing-ton, D.C. 20226.


D. A. PAGLIAI,Commissioner, Bureau of

Governmental Financial Operations.

[FR Doc. 78-5316 Filed 2-28-78; 8:45 am]

[4830-01]

Internal Revenue Service -

COMMISSIONER'S ADVISORY GROUP

Open Meeting

There will be a meeting of the Com-missioner;s Advisory Group on March14 and 15, 1978, in room 3313 of theInternal Revenue Service Building.The building is located at 1111 Consti-tution Avenue NW., Washington, D.C.The meeting will begin at 10 a.m. onMarch 14 and 9 a.m. on March 15. Theagenda will include the followingtopics:

TUESDAY, MARCH 14, 1978

Review of IRS Audit EfficiencyAvailability and Use of Technical Advice by

Revenue AgentsImpact of Code Section 6110 on the Private

Rulings Procedure and on the Publicationof Revenue Rulings.

Feasibility of Pilot Projects to Provide No-Fee and Low-Fee Legal Services to Tax-payers in Audit. Appeals and Collection

Effectiveness of Relationships Between IRSand Professional, Trade, and TaxpayerGroups

WEDNESDAY, MIRCH 15, 1978

Employment Tax Timing Problems ofExempt Organizations Dependent Primar-ily on Federal Grants

IRS ReorganizationIRS Alternative to TASPartnership Level Audit Proposal

The meeting, which will be open tothe public, will be in a room that ac-commodates approximately 50 people.After the Committee members finishdiscussing the items on the agenda,there may be time for statements bynon-members. If you want to make astatement at the meeting, or if youwould the Committee to consider awritten statement, please call or writeto Lauralee A. Matthews, Assistant tothe Commissioner, 1111 ConstitutionAvenue NW., Washington, D.C. 20224.


Lauralee A. Matthews, Assistant tothe Commissioner, 202-566-4390 (nottoll free).

JEROME KURTZ,Commissioner.

FEBRUARY 23, 1978.[

[FR Doe. 78-5283 Filed 2-28-78; 8:45 am]

[4810-22]

Office of the Secretary

CERTAIN NUTS, BOLTS, AND SCREWS

Initiation of Investigation Under Section 232 ofthe Trade Expansion Act of 1962

AGENCY: United States Treasury De-partment.

ACTION: Initiation of Section 232 In-vestigation.

SUMMARY: This notice Is to advisethe public that an investigation isbeing conducted under section 232 ofthe Trade Expansion Act to determinethe effects on the national security ofimports of nuts, bolts, and largescrews. Interested parties are Invitedto submit written data, views or argu-ments to the General Counsel of theTreasury concerning this question byMarch 31, 1978.EFFECTIVE DATE: March 1, 1978.FOR FURTHER INFORMATIONCONTACT:

Richard B. Self, Director, Office ofTariff Affairs, Office of the GeneralCounsel, Office of the Secretary, De-partment of the Treasury, 15th andPennsylvania Avenue NW., Washing-ton, D.C. 20220, 202-166-8585.

SUPPLEMENTARY INFORMATION:In a letter dated February 10, 1078,the President directed the Secretaryof the Treasury to initiate an expedit-ed national security investigation,under section 232 of the Trade Expan-sion Act of 1962, as amended (19U.S.C. 1862) pertaining to U.S. importsof iron or steel lag screws and bolts,bolts (except mine-roof bolts), nutsand large screws provided for In TSUSitems 646.49, 646.54, 646.56, and 646,63,(A copy of the letter Is appended tothis notice.) Accordingly, such an In-vestigation is being undertaken pursu-ant to section 9.2(a) of the TreasuryRegulations (31 CFR 9.2(a)).

Interested parties are invited tosubmit relevant data, views, or argu-ments with respect to this question tothe General Counsel of the Treasuryby March 31, 1978.

Within 90 days following the publi-cation of this Notice, a notice may beIssued announcing the time and placeof a public hearing designed to affordinterested parties the opportunity topresent oral or written views on specif-ic questions on which Treasury thinksadditional guidance from public com-ment may be helpful. The public hear-ing will take place within 30 days ofpublication of that Notice.

A recommendation to the Presidentby the Secretary of the Treasury as to,the appropriateness of Import reliefunder section 232 of the Trade Expan-


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NOTICES

sion Act of 1962 is expected to bemade no later than August 28, 1978.

ROBERT H. MuNDHEim,General Counsel of the Treasury.

FEBRUARY 24, 1978.

AprmmxTHE WHrT HOUSE,

Washington. February 10. 1978.HON. W. MrICHAEL BLTXN7HAL,Secretary of the Treasury,Washington, D.C.

DAn MiL SECRETA y. Pursuant to section202(b) of the Trade Act of 1974, I have de-termined that provision of import relief onU.S. imports of iron or steel lag screws orbolts, bolts (except mine-roof bolts) andbolts and their nuts in the same shipmentnuts, and screws having shanks or threadsover 0.24 inch in diameter, provided for initems 646.49, 646.54, 646.56, and 646.63 ofthe 'Iariff Schedules of the United States(TSUS) would not be in the national eco-nomic interest.

In conjunction with my decision not toprovide import relief to the domestic bolt,nut. and large screw industry, I have deter-mined that, in light of a recent Federal Pre-paredness Agency (FPA) staff study whichindicates that domestic fastener productioncapability is not adequate to satisfy wartimemetal fastener requirements, further inves-tigation of U.S. national security interestsas they relate to bolts, nuts, and largescrews is warranted. Accordingly. I herebydirect that you undertake an expedited na-tional security investigation under section232 of the Trade Expansion Act of 1962 (19U.S.C. 1862) pertaining to U.S. imports ofiron or steel lag screws and bolts, bolts(except mine-roof bolts), nuts, and largescrews provided for in T.US items 646.49,646.54,646.56, and 646.63.

Sincerely,JnMY Cit.UE

[FM Doe. 78-5383 Filed 2-28-78; 8:45 am]

[4810-40]

Office of The, Secretary

[Supplement to Department Circular.Public Debt Series--No. 6-781

TREASURY NOTES OF SERIES G-1982

Interest Rate Increase

FEmUARY 23, 1978.

The Secretary of the Treasury an-nounced on February 22, 1978, thatthe interest rate on the notes de-scribed in Department Circular-Public Debt Series--No. 6-78. datedFebruary 16, 1978, will be 7703 percentper annum. Accordingly, the notes arehereby redesignated 7% percent Trea-sury Notes of Series G-1982. Intereston the notes will be payable at therate of 77/a percent per annum.

PAUL H. TAYLOR.

Acting Fiscal Assistant Secretary.

[FR Doc. 78-5310 Filed 2-28-78; 8:45 am]

[7035-01]

INTERSTATE COMMERCECOMMISSIONENotice No. 5991

ASSIGNMENT OF HEARINGS

FEBuAR 24. 1978.Cases assigned for hearing, post-

ponement, cancellation, or oral argu-ment appear below and will be pub-lished only once. This list containsprospective assignments only and doesnot include cases previously assignedhearing dates. The hearings will be onthe issues as presently reflected in theOfficial Docket of the Commission. Anattempt wll be made to phblish no-tices of cancellation of hearings aspromptly as possible, but interestedparties should take appropriate stepsto insure that they are notified of can-cellation or postponements of hearingsin which they are interested.MC 36781, Rate Restructuring. December

1977, R.M.M.T.B., now assigned February27, 1978, at DC, Is postponed indefinitely.

Section 5b Appl. No. 1. Alaska Ral WaterAssociation Agreement now assignedMarch 7. 1978. at DC. is canceled and reas-signed to April 3, 1978, at Seattle, WA, ina hearing room to be later designated.

MC 134970 (Sub-No. 16). Unzlcker Trucking.Inc.,, is now assigned March 14. 1978. atChicago, I, and will be held at room 280.E. IS. Dlrksen Building, 219 South Dear-born Street.

MC 134022 (Sub-No. 25), Richard A. Zima,d.b.a. Zlpco is nqw assigned March 15,1978, at room 280, . L Dlrksen Building,219 South Dearborn Street.

MC 134022 (Sub-No. 26), Richard A. Zima.d.b.a. Zipco Is now assigned March 15,1978, at room 280, . M. Dlrksen Building.219 South Dearborn Street.

MC 134022 (Sub-No. 29), Richard A. Zimad.b.a. Zipco Is now assigned March 15,1978, at Chicago, IL, and will be held atroom 280, E. M. Dirksen Building, 219South Dearborn Street.

MC 80289 (Sub-No. 13), Red Line FurnitureCarriers, Inc., now being assigned May 8.1978 (1 week), at New York, NY, In a hear-ing room to be later designated.

MC-F-13067, Roadway Express, Inc--Con-trol and Merger-Western Gillette, Inc.,MC-F-13156, Arkansas-Best FreightSystem, Inc.-Purchase (Portion)-West-ern Gillette. Inc, MC-F-13157, CampbellSixty-Six Express, Inc.-Purchase (Por-tion)-Western Gillette.Inc., MC-F-13158,The Chief Freight Lines Co.-Purchase(Portlon)-Western Gillette. Inc., P.D.28591, The Chief Freight Lines. Co., MC-F-13159, Churchill Truck Lines, Inc.-Pur-chase (Porton)-.Western Gillette, Inc..MC-F-13160, Gordons Transport, Inc.-Purchase (Portion)-Western Gillette,Inc.. and MC-F-13161, Graves Truck Line,Inc.-Purchase (Portion)-Western Gil-lette, Inc., now being assigned for contl-ued hearing on April 11, 1978 (4 days). atDallas. TX, in a hearing room to be laterdesignated.

MC 96992 (Sub-No. 4). Highway PipelineTrucking Co. and MC 115841 (Sub-No.538), Colonial Refrigerated Transporta-tion, Inc, now being assigned April 17.1978 (1 week), at Dallas. TX in a hearingroom to be later designated.

MC 125433 (Sub-No. 123). P-B Truck LineCo, Is now assigned for hearing May 2.1978 (1 day). at San Francisco. CA. at ahearing room to be later designated.

MC 30837 (Sub-No. 478). Kenosha AutoTransport Corp, Is now assigned for hear-ing May 3.1978 (3 days), at San Francisco.CA. at a hearing room to be later desig-nated.

MC 109780 (Sub-No. 74), Continental Trail-ways, Inc., is now assigned for hearingMay 8. 1978 (2 weeks), at San Francisco,-CA. at a hearing room to be later desig-nated.

AB 43 (Sub-No. 42), Illinois Central GulfRailroad Co. Abandonment in- Green.Monroe. Brown. Johnson. Morgan. andMarion Counties. IN, is now assigned forhearing March 13, 1978, at Indianapolis.IN, and will be held at room 264. New Fed-eral Building. 575 North Penn and March14-17, hearing will be held at room 402,Federal Building and U.S. Courthouse, 46East Ohio Street.

MC 119792 (Sub-No. 68). Chicago SouthernTransportation Co, is now assigned forhearing April 25, 1978 (1 day), at Tampa.FL% at a hearing room to be later designat-ed.

MC 113388 (Sub-No. 121). Lester C. NewtonTrucking Co., Inc., is now assigned forhearing April 26, 1978 (3 days), at Tampa.FL. at a hearing room to be later designat-ed.

MC 56679 (Sub-No. 94). Brown TransportCorp, is now assigned for hearing May 5.1978 (1 day), at Miami FL, at a. hearingroom to be later designated.

MC 140587 (Sub-No. 4), Cecil ClaxtonTrucking, now assigned April 4. 1978. atDC, s canceled.

MC 9913, American Can & Storage. Inc., In-vestigation and Revocation of Certificatesis now assigned for hearing May 4. 1978 (1day). at Miami. FL. at a, hearing room tobe later designated.

AB 55 (Sub-No. 13), Seaboard Coast LineRailroad Co. Abandonment Between Arca-dia and Port Boca Grande in DeSoto.Charlotte, and Lee Counties, FL. is nowassigned for hearing May 1. 1978 (3 days).at Ft. Myers. FL. at a hearing room to belater designated.

H. G. Ho zm, Jr.,ActingSecretar.

[FR Doc. 78-5392 Filed 2-28-78; 8:45 am]

(7035-01]

IRREGULAR-ROUTE MOTOR COMMON CARRI-ERS OF PROPERTY-ELIMiNATiON OF GATE-WAY LETTER NOTICES

F n ARu Y 15. 1978.The following letter-notices of pro-

posals to eliminate gateways for thepurpose of reducing highway conges-tion. alleviating air and noise pollu-tion, minimizing safety hazards, andconserving fuel have been filed withthe Interstate Commerce Commissionunder the Commission's GatewayElimination Rules (49 CFR-1065), andnotice thereof to all interested personsis hereby given as provided in suchrules.

An original and two copies of pro-tests against the proposed eliminationof any gateway herein described may


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NOTICES

be filed with the Interstate CommerceCommission within 10 days from thedate of this publication. A copy mustalso be served upon applicant or itsrepresentative. Protests against theelimination of a gateway will not oper-ate to stay commencement of the pro-posed operation.

Successively filed letter-notices ofthe same carrier under these rules willbe numbered consecutively for conve-nience in identification. Protests, ifany, must refer to such letter-noticesby number.

The following applicants seek to op-erate as a common carrier, by motorvehicles, over irregular routes.

No. MC 61825 (Sub-No. E1183) (Cor-rection), filed May 13, 1974, publishedin the FEDERAL REGISTER issue of Janu-ary 20, 1978, and partially republished,as corrected, this issue. Applicant:ROY STONE TRANSFER CORP.,P.O. Box 385, Collinsville, VA 24078.Applicant's representative: Harry J.Jordan, 1000 Sixteenth Street NW.,Washington, DC 20036. Furnitureparts (except commodities in bulk),from points in CT, DE, DC, ME, MD,MA, NH, NJ, RI, those points in VT onand east of a line beginning at theUnited States-Canadian InternationalBoundary line, and extending alongVT Hwy 114, to junction U.S. Hwy 5,to junction VT Hwy 11, to junctionU.S. Hwy 7, to junction VT Hwy 9,then along VT Hwy 9 to the VT-NYState line; those points in NY, on andeast of a line beginning at the NY-VTState line, and extending along NYHwy 7, to junction U.S. Hwy 9W, tojunction NY Hwy 32, to junction NYHwy 23, to junction NY Hwy 30, tojunction NY Hwy 17, then along NYHwy 17 to the NY-PA State line; thosepoints in PA on and east of a line be-ginning at the PA-NY State line, andextending along PA Hwy 370, to junc-tion PA Hwy 247, to junction U.S. Hwy6, to junction Interstate Hwy 81, tojunction U.S. Hwy 22, to junction U.S.Hwy 11, then along U.S. Hwy 11 to thePA-MD State line; those points in VAon and east of a line beginning at theVA-WV State line, and extendingalong U.S. Hwy 11 to junction VA Hwy16, to junction VA Hwy 614, to junc-tion VA Hwy 749, to junction U.S.Hwy 21, to junction VA Hwy 805, tojunction VA Hwy 94, to junction U.S.Hwy 58, to the Atlantic Ocean. Thepurpose of this filing is to eliminatethe gateway qf Smyth County, VA.

No.-The purpose of this partial repub-lication is to correct the territorial descrip-tion. The remainder of this letter-notice re-mains as previously published.

No. MC 61825 (Sub-No. E1210), filedMay 13, 1974. Applicant: ROY STONETRANSFER CORP., P.O. Box 385,Collinsville, VA 24078. Applicant's rep-resentative: Harry J. Jordan, 1000 Six-teenth Street NW., DC 20036. Furni-

ture parts and materials, equipment,and supplies used in the manufactureand distribution of new furniture andfurniture parts, except commodities inbulk, from points in AL, AZ, AR, CA,CO, FL, GA, ID, KS, LA, MS, MT, NV,NM, OK, OR, TN, TX, UT, WA andWY and from those points in WV, KY,IN, IL, MO, IA, and NE on and southof a line beginning at the VA-WVState line, and extending along theNew River to U.S. Hwy 19, to junctionWV Hwy 3, to junction U.S. Hwy 119,to junction WV Hwy 10, to junctionWV Hwy 37 to the WVKY State line,and extending along KY Hwy 32 tojunction Interstate Hwy 64, to junc-tion KY Hwy 36, to junction U.S. Hwy62, to junction KY Hwy 32, to junctionU.S. Hwy 25, to junction U.S. Hwy 460,to junction KY Hwy 227, to junctionKY Hwy 607, to junction U.S. Hwy127, to junction KY Hwy 355, to junc-tion KY Hwy 22, to junction KY Hwy573, to junction KY Hwy 157 to theTrimble-Oldham County line, and ex-tending along the Trimble-OldhamCounty line to the KY-IN State line,and extending north along the OHRiver to the Clark-Jefferson Countyline and extending along the Clark-Jefferson County line to IN Hwy 362,to junction IN Hwy 3, to junction INHwy 56, to junction IN Hwy 39, tojunction U.S. Hwy 50, to junction INHwy 37, to junction IN Hwy 58, tojunction IN Hwy 67, to junction U.S.Hwy 41, to junction U.S. Hwy 50 tothe IN-IL State line and extendingalong U.S. Hwy 50 to junction IL Hwy127, to junction IL Hwy 140, to junc-tion IL Hwy 4, to junction IL Hwy 16,to junction IL Hwy 100, to junction ILHwy 96, to junction U.S. Hwy 24 tothe IL-MO State line, and extendingalong U.S. Hwy 24 to junction U.S.Hwy 61, to junction MO Hwy 6, tojunction MO Hwy 15, to Junction U.S.Hwy 136, to Junction M4O Hwy 149 tothe MO-IA State line, and extendingalong IA Hwy 216 to junction IA Hwy5, to junction IA Hwy 2, to junctionU.S. Hwy 65, to junction U.S. Hwy 34to the IA-MO State line, and extend-ing along U.S. Hwy 34 to junction U.S.Hwy 73, to the Platte River and ex-tending along the Platte River to NEHwy 92, to junction U.S. Hwy 81, tojunction NE Hwy 22, to junction NEHwy 39, to junction NE Hwy 14, tojunction NE Hwy 84, to junction U.S.Hwy 81 to the NE-SD State line; fromthose, points in MN, ND, and SD onand west of a line beginning at theNE-SD State line, and extendingalong U.S. Hwy 81 to junction U.S.Hwy 16, to junction Interstate Hwy 90,to junction SD Hwy 37, to junctionU.S. Hwy 212, to junction U.S. Hwy281 to the SD-ND State line, and ex-tending along U.S. Hwy 281 to junc-tion ND Hwy 11, to junction ND Hwy32, to junction ND Hwy 46, to junctionND Hwy 18, to junction Interstate

Hwy 94 to the ND-MN State line, andextending along U.S. Hwy 10 to Junc-tion U.S. Hwy 59, to Junction MN Hwy113, to junction U.S. Hwy 71 to theUnited States-Canadian InternationalBoundary line, to New York, NY. Thepurpose of this filing Is to eliminatepoints in Smyth County, VA, Lynch-burg, VA, and Baltimore, MD.

No. MC 61825 (Sub-No. E1211), filedMay 13, 1974. Applicant: ROY STONETRANSFER CORP., P.O. Box 385,Collinsville, VA 24078. Applicant's re-pesentative: Harry J. Jordan, 1000 Six-teenth Street NW., DC 20036. Materi-als, equipment, and supplies used Inthe manufacture, packaging, and dis-tribution of new furniture and furni.ture parts, except commodities inbulk, from points in CT, ME, MA, NH,RI, and VT to points In VA on andsouth of a line beginning at the NC-VA State line extending along VAHwy 89 to junction U.S. Hwy 58, tojunction VA Hwy 100, to Junction U.S.Hwy 11, to junction Hwy 460, to junc-tion VA Hwy 727, to Junction VA Hwy615, to junction VA Hwy 600, to junc-tion U.S. Hwy 501 to the VA-NC Stateline. The purpose of this filing is toeliminate the gateway of ElizabethCity, NC, and/or Lynchburg, VA,

No. MC 61825 (Sub-No. E1212), filedMay 13, 1974. applicant: ROY STONETRANSFER CORP., P.O. Box 385,Collinsville, VA 24078. Applicant's rep-resentative: Harry J. Jordan, 1000 16thStreet NW., Washington, DC 20036.Furniture parts and furniture materi-als, except commodities In bulk, frompoints in MA, CT, and RI to points InLA. The purpose of this filing is toeliminate the gateway of points inSmyth County, VA, Lynchburg, VA,and Martinsville, VA.

No. MC 61825 (Sub-No. E1213), filedMay 13, 1974. applicant: ROY STONETRANSFER CORP., P.O. Box 385,Collinsville, VA 24078. Applicant's rep-resentative: Harry J. Jordan, 1000 16thStreet NW., Washington, DC 20036.Furniture parts and furniture materi-als, except commodities In bulk, fromthose points in KY on and south of aline beginning at the TN-KY Stateline, and extending along U.S. Hwy127 to junction KY Hwy 90, to Junc-tion KY Hwy 80, to Junction KY Hwy91, to junction U.S. Hwy 62, to Junc-tion U.S. Hwy 45 to the KY-IL Stateline, to points in DE; to those points InNJ and NY on and east of a line begin-ning at the Atlantic Ocean, and ex-tending along the DE River to U.S.Hwy 1, to Junction NJ Hwy 91, to Junc-tion NJ Hwy 27, to the Garden StateParkway, to junctlon NJ Hwy 506, tojunction NJ Hwy 17, to the GardenState Parkway, to junction NJ Hwy502, to junction NJ Hwy 505 to theNJ-NY State line, and extending alongNY Hwy 303 to junction U.S. Hwy 9W,to junction U.S. Hwy 6 to the NY-CT


8324

'NOTICES

State line. The purpose of this filing isto eliminate the gateway of points inSmyth County, VA. Lynchburg, VA,and Martinsville, VA.

No. MC 65941 (Sub-No. E36), filedJanuary 24, 1975. Applicant: TOWERLINES, INC., P.O. Box 6010, Wheel-ing, WV 26003. Applicant's representa-tive: George- V. Thieroff (same asabove). Oil, grease, paper, roofing,metal and clay products, and materi-als, equipment, and supplies used oruseful in the production and packingof metal and clay products and build-ing, stone, structural.steel, and heavymachinery and equipment (exceptcommodities -in bulk), (1)(a) betweenpoints in Washington, Allegheny,Greene, Westmoreland, Fayette, andSomerset Counties, PA that are onand west of U.S. Hwy 219, on the onp.hand, and, on the other, points inOHon and west of a line beginning at theOH-WV State line. and extendingalong US. Hwy 250 to Lake Erie,(1)(b) between ' points in Beaver,Butler, Armstrong, Indiana, and Clar-ion Counties, PA that are on andsouth of Interstate Hwy 80. points inClearfield County, PA that are on andsouth of Interstate Hwy 80 and on andwest of U.S. Hwy 219, points in Cam-bria County, PA that are on and westof U.S. Hwy 219, points in JeffersonCounty, PA that are on and South ofInterstate Hwy 80, and points in Som-erset County, PA that are on and westof U.S. Hwy 219, on the one hand, and,on the other, points in OH on andsouth of a line beginning at the OH-WV State line and then along Inter-state Hwy 70 to junction OH Hwy 209,then along OH Hwy 209 to junctionOH Hwy 83, then along OH Hwy 83 tojunction OH Hwy 541, then along OHHwy 541 to junction US. Hwy 62, thenalong U.S. Hwy 62 to junction OHHwy 37, then along OH Hwy 37 tojunction U.S. Hwy 33, then along U.S.Hwy 33 to the OH-IN State line, (2)between points in PA on and west ofU.S. Hwy 219, on the one hand, and,on the other, points in OH and southof Interstate Hwy 70, (3) betweenpoints in PA on, south, and west of aline beginning at the WV-PA Stateline and extending along InterstateHwy 70 to junction U.S. Hwy 219, thenalong U.S. Hwy 219 to the PA-WVState line, on the one hand, and, onthe other, points in OH on and west ofa line beginning at the OH-WV Stateline, then along US. Hwy 250 to junc-tion Ihterstate Hwy 77, then along In-terstate Hwy 77 to junction OH Hwy59, then along OH Hwy 59 to junctionOH Hwy 91, then along OH Hwy 91 toLake Erie, (4) between points in Mon-ongalia, Taylor, Marion, and BarbourCounties, WV. on the one hand, and,on the other, points in OH on, west,and north of a line beginning at theOH-WV State line, then along OHHwy 78 to junction OH Hwy 60, then

along OH Hwy 60 to junction OH Hwy93, then along OH Hwy 93 to JunctionU.S. Hwy 50. then along US. Hwy 50to the OH-IN State line and points onand west of a line beginning at theOH-WV State line. and extendingalong OH Hwy 45 to Junction OH Hwy88 to the OH-PA State line, (5)(a) be-tween points in Kanawha County.VTV, on and north of US. Hwy 60. onthe one hand, and, on the other,points in OH. on. north, and east of aline beginning at the OH-WV Stateline and extending along OH Hwy 78to junction OH Hwy 800, then alongOH Hwy 800 to junction US. Hwy 250.then along U.S. Hwy 250 to junctionOH Hwy 94,then along OH Hwy 94 tojunction OH Hwy 604, then along OHHwy 604 to Junction OH Hwy 83, thenalong OH Hwy 83 to junction US.Hwy 224, then along US. Hwy 224 tojunction OH Hwy 58. then along OHHwy 58 to Lake Erie, (5)(b) betweenpoints in Harrison, Doddridge. Lewis.and Gilmer Counties, WV. on the onehand, and, on the other, points in OHon and north of a line beginning at theOH-WV line and extending along In-terstate Hwy 70 to Junction InterstateHwy 71, then along Interstate Hwy 71to junction Interstate Hwy 75, thenalong Interstate Hwy 75 to the Or-KY State line, (6) between points inTyler, Pleasants, Ritchie. Calhourn.Wirt, and Wood Counties. WV, on theone hand, and. on the other, points inAshtabula, Lake, Geauga. Trumbull.Mahoning, Belmont, Columbiana, Por-tage. Carroll, Jefferson. and HarrisonCounties, OH, (7) between points inRoane and Jackson Counties. WV andpoints in Putnam County. WV on andnorth of U.S. Hwy 60, on the onehand, and, on the other, points in Ash-tabula, Lake. Geauga. Trumbull. Ma-honing, Belmont, Wayne, Medina.Lorain, Ottawa, Lucas, Portage, Car-roll, Jefferson. Harrison, Summltt.Cuyahoga, Erie, Huron, Sandusky, andWood Counties, OH, (8) betweenpoints in Cabel County, WV, on andnorth of U.S. Hwy 60 and points inMason County, WV, on the one hand,and, on the other, points in Ashtabula,Lake, Geauga, Trumbull, Mahoning,Belmont, Portage, Carroll Jefferson,Harrison, Summitt and CuyahogaCounties. OH, (9) between points inPendleton, Randolph, Upshur Brax-ton, Clay, Webster, Nicholas, and Po-cahontas Counties, WV and points inFayette and Greenbrier Counties, WVon and north of U.S. Hwy 60, on theone hand, and, on the other, points inOH on and north of a line beginningat the OH-WV State line, then alongInterstate Hwy 70 to Junction OHHwy 13, then along OH Hwy 13 tojunction OH Hwy 657, then along OHHwy 657 to Junction OH Hwy 314.then along OH Hwy 314 to JunctionOH Hwy 95, then along OH Hwy 95 tojunction US. Hwy 30S, then along

US. Hwy 30S to junction US. Hwy 68.then along U.S. Hwy 68 to junctionU.S. Hwy 30N, then along US. Hwy30N to Junction US. Hwy 30, thenalong US. Hwy 30 to the OK-IN Stateline. (10) between points in Tucker,Grant, Hardy. Mineral, Hampshire.Morgan, Berkeley. and JeffersonCounties, WV. on the one hand, and,on the other, points in OH on andnorth of a. line beginning at the OH-WV State line, then along OH Hwy 78to junction OH Hwy 37, then alongOH Hwy 37 to Junction US. Hwy 22.then along U.S. Hwy 22 to junctionOH Hwy 138, then along OH Hwy 138to junction U.S. Hwy 62. then alongUS. Hwy 62 to the OH-KY State line.The purpose of this filing is to elimi-nate the gateway of Martins Ferry.Ohio (excluding that portion of WV inthe Martins Ferry. OH. commercialzone, as defined by the Commission).

No. MC 83539 (Sub-No. E346), filed 'May 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment, between points In theState of AL in and west of Jackson,Marshall. Etowah. Calhoun, Talla-dega, Coosa, Elmore, Montgomery,Pike, Crenshaw. and Covington coun-ties, on the one hand. and, on theother, points in the State of MA. Thepurpose of this filing is to eliminatethe gateways of Philadelphia. PA.points within a 50-miIe radius of Nash-ville, TN, and points In KY.

No. MC 83539 (Sub-No. E349), filedMay 31, 1977. Applicant: C & itTRANSPORTATION. P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham IlI (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment, between points in theState of AL. on the one hand, and. onthe other, points in the State of OH.The purpose of this filing is to elimi-nate the gateways of points within a50-mile radius of Nashville, TN, andpoints in KY.

No. MC 83539 (Sub-No. E350), filedMay 31, 1977. Applicant: C & HTRANSPORTATION. P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham Ila (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment, between points in theState of AL. on the one hand. and. ofithe other, points in the State of PA.The purpose of this filing is to elimi-nate the gateways of points within a50-mile radius of Nashvilld, TN, andpoints in KY.

No. MC 83539 (Sub-No. E351), filedMay 31, 1977. Applicant: C & H


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NOTICES

TRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment, between points in theState of AL, on the one hand, and, onthe other, points in the State of RI.The purpose of this filing is to elimi-nate the gateways of Philadelphia,PA, points within a 50-mile radius ofNashville, TN, and points in KY.

No. MC 83539 (Sub-No. E352), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment, between points in theState of .AL in, north and west ofMarion, Winston, Lawrence, Morgan,and Madison Counties, on the onehand, and, on the other, points in theState of VA in and west of Dickinson,Russell, and Washington Counties.The purpose of this filing is to elimi-nate the gateways of points within a50-mile radius of Nashville, TN, andpoints in KY.

No. MC 83539 (Sub-No. E356), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment, between points in Missis-sippi County, AR, on the one hand,and, on the other, points in the Stateof MO, in, north and west of Buchan-an, Clinton, Caldwell, Livingston,Linn, Sullivan, Adair, and SchuylerCounties, Restricted against: (1) Ser-vice in the stringing or picking up ofany of the above commodities in con-nection with main or truck pipelines,and (2) service in the stringing or pick-Ing up of pipe in connection with oil orgas pipelines. The purpose of thisfiling is to eliminate the gateways ofpoints In KY and IL.

No. MC 83539 (Sub-No. E432), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). (1) Commodities, the trans-portation of which, because of theirsize or weight, require the use of spe-cial equipment, and (2) related ma-chinery parts, and related contractors'materials and supplies when movingin connection with the commodities in(1) above, between (a) points in MD,on the one hand, and, on the other,points in VA in and west of Craig,Montgomery, Floyd, and PatrickCounties; (b) points in MD in, west,and north of Frederick, Carroll, Balti-

more, Baltimore City, Harford, andCecil Counties, on the one hand, and,on the other, points in VA in and westof Rockingham, Augusta, Rockbridge,Bedford, Pittsylvania, and HalifaxCounties; (a) points inoMD in and westof Frederick County, on the one hand,and, on the other, points in VA in,west, and south of Rockingham, Au-gusta, Nelson, Amherst, Campbell,Charlotte, Lunenburg, Nottoway,Brunswick, Greensville, Sussex, South-ampton, Isle of Wight, Warwick, York,and in Accomac, and NorthhamptonCounties; (d) points in MD in and westof Washington Counties, on the onehand, and, on the other, points in VA.The purpose of this filing is to elimi-nate the gateway of points in PA.

No. MC 83539 (Sub-No. E433), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). (1) Commodities, the trans-portation of which, because of theirsize or weight, require the use of spe-cial equipment, and (2) related ma-chinery parts and related contractors'materials and supplies when movingin connection with the commodities in(1) above, (a) between points in MD,on the one hand, and, on the other,points in WV in and west of Mason,Putnam, Kanawha, Boone, Logan, andMingo Counties, and in and north ofOhio County; (b) points in MD in andeast of Washington County, on theone hand, and, on the other, points inWV in and west of Morgan County; (c)points in MD in and east of Wicomicoand Somerset Counties, on the onehand, and, on the other, points in WV.The purpose of this filing is to elimi-nate the gateway of points in PA.

No. MC 83539 (Sub-No. E434), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). (1) Commodities, the trans-portation of which, because of theirsize or weight, require the use of spe-cial equipment and (2) related machin-ery parts and related contractors' ma-terials and supplies when moving inconnection with the commodities in(1) above, between points in MD, onthe one hand, and, on the other,points in WI, except that no serviceshall be performed in the stringing orpicking up of pipe in connection withoil or gas pipelines. The purpose ofthis filing is to eliminate the gatewaysof points in IN and PA.

No. MC 83539 (Sub-No. E435), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). (1) Commodities, the trans-portation of which because of theirsize or weight, require the use of spe-

cial equipment, and parts thereofwhen moving In connection with suchcommodities, between (a) points In ARin and east of Caly, Greene, Craig-head, Poinsett, Cross, and CrittendenCounties, on the one hand, and, on theother, points in CO in the west of LaPlata, San Juan, Ouray, Gunnison,Chaffee, Park, Jefferson, Boulder, andWeld Counties; (b) points In AR inMississippi and Crittenden Counties,on the one hand, and, on the other,points in the State of CO, restrictedagainst (1) the stringing or picking upof any of the above commodities Inconnection with main or truck pipe-lines, and (2) the stringing or pickingup of pipe in connection with oil or gaspipelines. The purpose of this filing isto eliminate the gateways of points InIL, MO, and Wichita, KS.

No. MC 83539 (SUb-No. E437), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). (1) Structural steel, thetransportation of which because ofsize or weight requires the use of spe-cial equipment, from the facilities ofC.P. & I. Steel Corp. at or nearPueblo, CO, to points in NH. The pur-pose of this filing Is to eliminate thegateways of points in IN, Philadelphia,PA, and Worcester, MA.

No. MC 83539 (Sub-No. E438), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Structural steel, the trans-portation of which because of size orweight requires the use of specialequipment, from the facilities of C. F,& I. Steel Corp., at or near Pueblo,CO, to points in VT. The purpose ofthis filing is to eliminate the gatewaysof points in IN, Philadelphia, PA, andWorcester, MA.

Applicant: C & H TRANSPORTA-TION, P.O. Box 5976, Dallas, TX75222. Applicant's representative: H.N. Cunningham III (same as above).(1) Self-propelled articles (except indriveaway service), each weighing15,000 pounds or more, and (2) relatedmachinery, parts, and supplies movingin connection with the commodities in(1) above between: (a) points In MO, inand west of Pike, Montgomery, Gas-conade, Phelps, Dent, Shannon,Carter, Butler, Dunllin, and PemiscotCounties, on the one hand, and, on theother, points in OH In east and northof Erie, Lorain, Medina, Summit,Stark, and Columbiana Counties: (b)points in MO in and west of Rails, Au-drain, Callaway, Cole, Moniteau,Morgan, Benton, Hickory, St. Clair,Cedar, Barton, JasPer, Lawrence,Christian, Douglas, Howell, Oregon,Ripley, Butler, Dunklin, and PemiscotCounties, on the one hand, and, on the


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other, points in OH, restricted againstthe transportation of any shipment

*whichT (1) originates at St. Louis orKansas City, MO, and which is des-tined to any point in IA, KS, or MO,or (2) originates at any point in IA,KS, or MO and which is destined toSt. Louisor Kansas City, MO, and fur-ther restricted to commodities- whichare transported on trailers. The pur-pose of this filing is to eliminate thegateways of points in IA, IL and IN, orpoints in AR and KY.

No. MC 83539 (Sub-No. E447), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Self-propelled articles(except in driveaway service), eachweighing 15,000 pounds or more andrelated machinery, parts, and suppliesmoving in connection therewith, be-tween points in OH, on the one hand,

.and, onthe other, points of OK. Thepurpose 'of this filing is to eliminatethe gateway of points iniN.

Applicant: C & H TRANSPORTA-TION, P.O. Box 5976, Dallas, TX75222. Applicant's representative: H.N. Cunningham I (same as above).Commodities, the transportation ofwhich, because of their size or weight,require the use of special equipment,between points in MA, on the onehand, and, on the other, points in MI.The purpose of this filing is to elimi-nate the gateways of Philadelphia,PA.

No. MC 83539 (Sub-No. E450), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: HN. Cunningham I (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, between: (A) points in MA,on the one hand, and, on the other,points in that part of OH in, west, andsouth of Ottawa, Sandusky, Seneca,Crawford, Richland, Ashland, Medina,Summit, Portage, and Trumbull Coun-ties; and (B) points in that part of MA,in and east of Worcester County, onthe one hand, and, on the other,points in OH. The purpose of thisfiling is to eliminate the gateway ofPhiladelphia, PA.

No. MC 83539 (Sub-No. E451), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, between points in MA onthe one hand, and, on the other,points in that part of TN in and westof Clay, Overton, Putnam, DeKalb,Warren Coffee, and Franklin Coun-

ties. The purpose of this filing Is toeliminate the gateways of Philadel-phia, PA, any points in KY, and Nash-ville, TN.

No. MC 83539 (Sub-No. E452), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of -peclalequipment between points in MA onthe one hand, and, on the other,points in VA. The purpose of thisfiling is to eliminate the gateway ofPhiladelphia, PA.

No. MC 83539 (Sub-No. E453), filedMay 31, 1977. Applicant* C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment between points In MA onthe one hand, and, on the other,points in WV. The purpose of thisfiling is to eliminate the gateway ofPhiladelphia, PA..

No. MC 83539 (Sub-No. E454), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham II (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use or speclalequipment and parts thereof whenmoving in connection with such com-modities between points In MI (LowerPeninsula), on the one hand, and, onthe other, points in MO. Restrictions:(1) No service shall be performed inthe stringing or picking up of any ofthe above commodities In connectionwith main or trunk pipelines; and (2)no service shall be performed instringing or picking up of pipe in con-nection with oil or gas pipelines, thepurpose of this filing is to eliminatethe gateways of IL and IN.

No. MC 83539 (Sub-No. E455), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,-Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham I (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment; and related machineryparts, and related contractors' materi-als and supplies when moving in con-nection with such commodities; be-tween points in MI , on the one hand,and, on the other, points In NJ. Thepurpose of this filing Is to eliminatethe gateway of PA.

No. MC 83539 (Sub-No. E456), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-

sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment; and related machineryparts, and related contractors' materi-als and supplies when moving in con-nection with such commodities, be-tween points in MI, on the one hand,and, on the other, points in NY. Thepurpose of this filing is to eliminatethe gateway of PA.

No. MC 83539 (Sub-No. E457), filedMy 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, and parts thereof whenmoving in connection with such com-modities, between (a) points in MI(Upper Peninsula), on the one hand,and, on the other, points in that partof NC in, west, and south of Madison,Buncombe, Rutherford, Cleveland,Lincoln, Mecklenburg, Union, andAnson Counties; (b) points in that partof MI n and west of Keweenaw,Houghton. Iron, Dickinson, and Meno-minee Counties, on the one hand, and,.on the other, points in NC; (C) pointsn that part of MI In and west of Mar-quette, and Delta Counties on the onehand, and, on the other, points in thatpart of NC In and west of Vance,Franklin, Nash. Edgecombe, Wilson,Greene, Lenoir, Duplin, and Anslow.The purpose of this filing is to elimi-nate the gateways of KY and pointswithin a 50 mile radius of Nashville,TN.

No. MC 83539 (Sub-No. E458), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 7522g. Applicant's repre-sentative: H. N. Cunningham I (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment between points in MI, onthe one hand, and, on the other,points in RI. The purpose of this filingis to eliminate the gateway of Phila-delphia, PA.

No. MC 83539 (Sub-No. E459), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative:'H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment, and parts thereof whenmoving in connection with such com-modities, between: (A) points in MI, onthe one hand, and, on the other,points in that part of SC, in, east, andsouth of Anderson, Abbeville, Green-wood, Edgefield, Aiken, Barnwell, Al-lendale, Hampton, and Beaufort Coun-ties; (B) points in that part of MI, in


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and west of Cheboygan, Charlevoix,Antrim, Grand Traverse, Wexford,Lake, Newaygo, Kent, Allegan, Kala-mazoo, Van Buren, and Cass Counties,on the one hand, and, on the other,points in SC; and (C) points in MI, inand west of Huron, Tuscola, Genesee,Shiawassee, Ingham, Jackson, Cal-houn, and Branch Counties, on theone hand, and, on the other, points inthat part of SC, in, east, and south ofAnderson, Abbeville, Greenwood, Ed-gefield, Aiken, Orangeburg, Dorches-ter, and Charleston Counties. Restric-tion: The authority granted immedi-ately above is subject to the conditionthat the carrier shall not transportaircraft and missiles, and parts there-of. The purpose of this filing is toeliminate the gateways of KY, pointswithin a 50-mile radius of Nashville,TN, and NC or GA.'

No. MC 83539 (Sub-No. E460), filedMay 31, 1977: Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentatiie: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, and parts thereof whenmoving in connection with such com-modities, between: (A) points in thatpart of MI in and west of Marquetteand Delta Counties, on the one hand,and, on the other, points in TN; (B)points in MI, on the one hand, and, onthe other, points in that part of TN, inand west of Macon, Jackson, Putnam,Cumberland, Bledsoe, and HamiltonCounties. The purpose of this filing isto eliminate the gateways of KY andpoints within a 50-mile radius of Nash-ville, TN.

No. MC 83539 (Sub-No. E461), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, and parts thereof whenmoving in connection with such com-modities between points in IN, on theone hand, and, on the other, points inOH. Restrictions: (1) No service shallbe performed in the stringing or pick-ing up of any of the above commod-ities in connection with main or trunkpipelines. (2) No service shall be per-formed in the stringing or picking upof pipe in connection with oil or gaspipelines. The purpose of this filing isto eliminate the gateways of IL andIN.

No. MC 83539 (Sub-No. E462), filedMay 31, 1977. Applicant. C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size or

weight, require the use of specialequipment and related machineryparts, and related contractors' materi-als and supplies when moving in con-nection with such commodities, be-tween points in MN, on the one hand,and, on the other, points in VA. Re-striction: No service shall be per-formed in the stringing or picking upof pipe in connection with oil or gaspipelines. The purpose of this filing isto eliminate the gateways of IL andIN.

No. MC 83539 (Sub-No. E463), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment; and related machineryparts, and related contractors' materi-als and supplies when moving in con-nection with such commodities be-,twe~n points in MN, on the one hand,and, on the other, points in WV. Re-striction: No service shall be per-formed in the stringing or picking upof pipe in connection with oil or gaspipelines. The purpose of this filing isto eliminate the gateways of IL andIN.

No. MC 83539 (Sub-No. E464), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 59,76,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham II (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment and parts thereof whenmoving in connection with such com-modities; between points in MS, on theone hand, and, on the other, points inOH. Restriction: No service shall beperformed in the stringing or pickingup of any of the above commodities inconnection with main or trunk pipe-lines. The purpose of this filing is toeliminate the gateway of KY.

No. MC 83539 (Sub-No. E465), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment and, related machineryparts, and related contractors' materi-als and supplies when moving in con-nection with such commodities; be-tween points in MO, on therone hand,and, on the other, points in OH. Re-strictions: (1) No service shall be per-formed in the stringing or picking upof any of the above commodities inconnection with main or trunk pipe-lines. (2) No service will be performedin the stringing or picking up of pipein connection with oil or gas pipelines.The purpose of this filing is to elimi-nate the gateways of IL and IN.

No. MC 83539 (Sub-No. E466), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222, Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, and parts thereof whenmoving in connection with such com-modities, between points In MO, onthe one hand, and, on the other,points in VA. Restrictions: (1) No ser-vice shall be performed in the st'ring-Ing or picking up of any of the abovecommodities in connection with mainor trunk pipelines. (2) No service shallbe performed in the stringing or pick-ing up of pipe in connection with oil orgas pipelines. The purpose of thisfiling is to eliminate the gateways ofIL, and IN, or KY.

No. MC 83539 (Sub-No. E467), filedMay 31, 1977. Applicant: C & UTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, and related machineryparts when moving in connection withsuch commodities, between points inMO, on the one hand, and, on theother, points in WV. Restrictions: (1)No service shall be performed in thestringing or picking up of any of theabove commodities in connection withmain or trunk pipelines, (2) no serviceshall be performed in the stringing orpicking up of pipe 1h connection withoil or gas pipelines. The purpose ofthis filing is to eliminate the gatewaysof IL, IN, or KY.

No. MC 83539 (Sub-No. E468), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment between points'n MT, onthe one hand, and, on the other,points in VA. Restrictions: No serviceshall be performed in the stringing orpicking up of any of the above com-modities in connection with main ortrunk pipelines. No service shall beperformed in the stringing or pickingup of pipe in connection with oil or gaspipelines. The authority granted shallbe restricted against the transporta-tion of boats, the purpose of this filingis to eliminate the gateway of SD, IA,IL, and IN.

No. MC 83539 (Sub-No. E469), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size or


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weight, require the use of specialequipment between points in MT. onthe one 'hand, and, on the other,points in WV. Restrictions: No serviceshall be performed in the stringing orpicking up of any of the above com-modities in connection with main ortrunk pipelines. No service shall beperformed in the stringing or pickingup of pipe in connection with oil or gaspipelines; the authority granted shallbe restricted against the transporta-tion of boats. The purpose of thisfiling is to eliminate the gateways ofSD, IA, IL, and IN.

No. MC 83539 (Sub-No. E470), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham I (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment, between points in thatpart of NE, in, west, and south ofDawes, Box Butte, Morrill, Garden,Keith, Lincoln, Frontier, and Redwil-low Counties, on the one hand, and, onthe other points in that part of WI inand east of Door, Kewaunee, Man-itowoc, Sheboygan, Ozaukee, Milwau-kee, Racine, and Kenosha Counties.Restrictions: No service shall be per-formed in thestringing or picking upof any of the above commodities inconnection with main or trunk pipe-lines. The carrier shall not transportmachinery, equipment, materials, andsupplies used in, or in connection with,the construction, operation, repair,servicing, maintenance, and disman-tling of pipelines, including the string-ing and picking up thereof, from, to orbetween points in IL. The authoritygranted under the two commodity de-scriptions above shall be restrictedagainst the transportation of cast ironpressure pipe and fittings and accesso-ries therefor when moving with suchpipe, from Council Bluffs, IA. No ser-vice shall be performed in the string-ing or picking up of pipe in connectionwith oil or gas pipelines. The purpose"of this filing is to eliminate gatewaypoints in IL and IN.

No. MC 83539 (Sub-No. E493), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, by reason of size orweight, require the use of specialequipment; and related machinery andcontractor's materials and supplieswhen their transportation is incidentalto the transportati6n of the commod-ities authorized above, between pointsin SD, 'on the one hand, and, on theother, points in WV. Restriction: Theauthority granted herein is subject tothe condition that the carrier shallnot engage in the stringing or picking

up of pipe along pipelines. The pur-pose of this filing Is to eliminate thegateway of OH.

No. MC 83539 (Sub-No. E494), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment anf related machineryparts and related contractors' materi-als and supplies when moving in con-nection with such commodities, be-tween points in Union County, SD, onthe one hand, and, on the other,points in Racine and Kenosha Coun-ties, WI. restricted against the string-ing or pickup of pipe in connectionwith oil or gas pipelines. The purposeof this filing is to eliminate the gate-ways of IA, IL, and IN. -

No. MC 83539 (Sub-No. E497), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment and related machineryparts and related contractors' materi-als and supplies when their transpor-tation Is incidental to the transporta-tion of the commodities authorizedabove, between points in VA and WI,restricted against the stringing orpicking up of pipe in connection withoil, gas, main, or truck pipelines. Thepurpose of this filing is to eliminatethe gateways of IN and IL,

No. MC 83539 (Sub-No. E498). filedMay 31, 1977. Applicant: C & HTRANSPPRTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of size orweight, require the use of specialequipment (except boats), and relatedmachinery parts and related contrac-tors' materials and supplies whenmoving in connection with such com-modities, between points in VA andpoints in WY, restricted against thestringing or picking up of any of theabove commodities in connection withmain or truck pipelines. The purposeof this filing Is to eliminate the gate-ways of IN, IL. IA, and SD.

No. MC 83539 (Sub-No. E4799) filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Commodities, the transpor-tation of which, because of their sizeor weight, require the use of specialequipment and related machineryparts and related contractors' materialand supplies when moving in connec-

tion with such commodities betweenpoints In WV and points in WI, re-stricted against the stringing or pick-ing up of any of the above commod-ities in connection with oil, gas, mainor truck pipelines. The purpose of thisfiling Is to eliminate the gateways ofIN andIL.

No. MC 83539 (Sub-No. E590), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Heavy machinery (A) be-tween those points in MD In and westof Queen Annes, Anne Arundel, Cal-vert, and St. Marys Counties, on theone hand, and, on the other, thosepoints in NC in and west of Alleghany,Wilkes, Iredell, Mecklenburg, andUnion Counties; (B) between thosepoints in MD in and west of FrederickCounty, on the one hand, and, on theother, points in NC: (C) between thosepoints in MD in, west and north ofDorchester and Somerset Counties, onthe one hand. and, on the other, those,points in NC in and west of Madison,Buncombe, and Henderson Counties.The purpose of this filing is to elimi-nate the gateways of PA and VA.

No. MC 83539 (Sub-No. E591), filedMay 31, 1977. Applicant: C & HTRANSPORTATION, P.O. Box 5976,Dallas, TX 75222. Applicant's repre-sentative: H. N. Cunningham III (sameas above). Heavy machiney, betweenpoints in MD, in, 'west, and north ofQueen Annes, Anne Arundel. Calvert,and St. Marys Counties, on the onehand, and, on the other, points in SC(PA. VA, and NC*). Restriction: Theauthority granted immediately aboveis subject to the condition that thecarrier shall not transport aircraft andmissiles and parts thereof. The pur-pose of this filing Is to eliminate thegateways indicated by asterisks above.

No. MC 102567 (Sub-No. ELi) (Cor-rection). filed June 3, 1974, publishedIn the FEmERAL REoisrza issue of June4, 1975, and republished, as corrected,this issue. Applicant: MC NAIR.TRANSPORT, INC., P.O. Drawer5357, Bossier City, LA 71010. Appli-cants representative: Joe Day (same-as above). Petroleum products (exceptliquefied petroleum gases), as definedin Appendix XIII to the report in De-scriptions in Motor Carrier Certifi-cates, 61 MCC 209, in bulk, in tank ve-hicles, from those points In LA, ARand TX within 150 miles of Hender-son, TX, which are south of a line be-ginning at Alexandria, LA, and extend-ing along U.S. Hwy 71 to junction U.S.Hwy 59, then along U.S. Hwy 59 toJunction TX Hwy 155, then along TXHwy 155 to junction U.S. Hwy 79. thenalong US. Hwy 79 to a point on U.S.Hwy 79 within 150 miles of Henderson.TX. near Rockdale, TX, to thosepoints-in AR north of a line beginning


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at the AR-OK State line and extend-ing along U.S. Hwy 62 to junction ARHwy 25, then along AR Hwy 25 tojunction AR Hwy 18, then along ARHwy 18 to junction AR Hwy 135, thenalong AR Hwy 135 to junction ARHwy 140, then along AR Hwy 140 tothe AR-TN State line. The purpose ofthis filing is to eliminate the gatewaysof points in that part of LA north andwest of a line beginning at the LA-TXState line and extending along U.S.Hwy 84 to junction U.S. Hwy 167, thenalong U.S. Hwy 167 to the LA-ARState line.

NoTE.-The purpose of this republicationis to correct the origin states, to include TX,previously omitted.

No. MC 102567 (Sub-No. E75) (Cor-rection), filed June 3, 1974, publishedin the FEDERAL REGISTER issue of June4, 1975, and republished, as corrected,this issue. Applicant: MC NAIRTRANSPORT, INC., P.O. Drawer5357, Bossier City, LA 71010. Appli-cant's representative: Joe Day (sameas above). Petroleum products as de-scribed in Appendix XIII to the reportin Descriptions in Motor Carrier Certi-ficates, 61 MCC 209, in bulk, in tankvehicles, (except liquefied petroleumgas, anhydrous ammonia, and as-phalt), from those points in TX, LA,and AR within 150 miles of Hender-son, TX, which are south of a line be-ginning at the AR-OK State line andextending along AR Hwy 4, to junc-tion U.S. Hwys 59/71, to junction ARHwy 24, to junction AR Hwy 4, thenalong AR Hwy 4 to junction AR Hwy19, then along AR Hwy 1'9 to junctionU.S. Hwy 82, then along U.S. Hwy 82to a point near Strong, AR, to thosepoints in TN north and east of a linebeginning at the TN-KY State lineand extending along U.S Hwy 51 tojunction TN Hwy 22, then along TNHwy 22 to the TN-MS State line. Thepurpose of this filing is to eliminatethe gateways of El Dorado, AR,Cotton Valley, LA, and Waskom andMt. Pleasant, TX.No.-The purpose of this republication

is to correct the territorial description.No. MC 106603 (Sub-No. E81), filed

May 10, 1974. Applicant: DIRECTTRANSIT LINES, INC., P.O. Box8099, Grand Rapids, MI 49508. Appli-cant's representative: Martin J. Lea-vitt, P.O. Box 400, Northville, MI48167. Such glazed building blocks andclay products, other than pottery,which are building contractor's roof-ing, building, and insulating materials,from Lansing, MI, to points in MOwithin the St. Louis, MO-East St.Louis, IL, commercial zone as definedby the Commission and points in IAon the east of U.S. Hwy 63. The pur-pose of this filing is to eliminate thegateways of points in IN (except theplantsite of the Bethlehem SteelCorp., located at Burns Harbor, PorterCounty, IN) and Joliet, IL.

No. MC 106603 (Sub-No. E82), filedMay 10, 1974. Applicant: DIRECTTRANSIT LINES, INC., P.O. Box8099, Grand Rapids, MI 49508. Appli-cant's representative: Martin J. Lea-vitt, P.O. Box 400, Northville, MI48167. Such building blocks and clayproducts, other than pottery, whichare building contractor's roofing,building, and insulating materials(except in bulk), from Ypsilanti, MI,to points in IA on the east of U.S. Hwy63, and points in MO within the St.Louis, MO-East St. Louis, IL, commer-cial zone as defined by the Commis-sion. the purpose of this filing is toeliminate the gateways of points in IN(except the .plantsite of the Bethle-hem Steel Corp., located at BurnsHarbor, Porter County, IN) and Joliet,IL.

No. MC 106603 (Sub-No. El01), filedMay 10, 1974. Applicant: DIRECTTRANSIT LINES, INC., P.O. Box8099, Grand Rapids, MI 49508. Appli-cant's representative: Martin J. Lea-vitt, P.O. Box 400, Northville, MI48167. Materials, equipment, and sup-plies used in the manufacture, instal-lation, or application of roofing orroofing materials (except commoditiesin bulk), restricted to those roofing orroofing materials that are buildingcontractor's materials, equipment, andsupplies, from points in DE, MD, NJ,NY, PA, DC, VA, on, north, and eastof a line beginning at the VA-WVState line and extending southeastalong U.S. Hwy 250 to junction U.S.Hwy-15, then south on U.S. Hwy 15 tojunction U.S. Hwy 460, then southeaston U.S. Hwy 460 to junction VA Hwy46, then south on VA Hwy 46 to junc-tion VA HWy 49, then south on VAHwy 49to junction VA Hwy 138, thensouth on VA Hwy 138 to junction U.S.Hwy 1, then southwest on U.S. Hwy 1to the VA-NC State line, and points inWV on, north, and east on a line be-ginning at the WV-OH State line andextending east along U.S. Hwy 50 tojunction U.S. Hwy 19, then south onU.S. Hwy 19 to junction U.S. Hwy 33,then east on U.S. Hwy 33 to junctionU.S. Hwy 250, then southeast on U.S.Hwy 250 to the WV-VA State line, topoints in MO within the St. Louis,MO-East St. Louis, IL, commercialzone as defined by the Commissionand those points in MO within 10miles of the west bank of the Missis-sippi River. The purpose of this filingis to eliminate the gateways of theplantsite of Certain-teed ProductsCorp. at Avery, OH.

No. MC 106603 (Sub-No. E102), filedMay 10, 1974. Applicant: DIRECTTRANSIT LINES, INC., P.O. Box8099, Grand Rapids, MI 49508. Appli-cant's representative: Martin J. Lea-vitt, P.O. Box 400, Northville, MI.48167. Materials, equipment, and sup-plies used in the manufacture, instal-

lation, or application of roofing orroofing materials (except commoditiesin bulk), restricted to those roofingand roofing materials that are build-Ing contractor's equipment, materials,and supplies from points in NJ, on,north, and east of a line beginning atthe PA-NJ State line and extendingeast along Interstate Hwy 276 to junc-tion Interstate Hwy 295, then on In-terstate Hwy 295 to junction U.S. Hwy206, then south on U.S. Hwy 206 tojunction NJ Hwy 70, then east alongNJ Hwy 70 to junction NJ Hwy 72,then east on NJ Hwy 72 to the Atlan-tic Ocean, NY, and PA on and north ofa line beginning at the OH-PA Stateline and extending east along Inter-state Hwy 80 to junction PA Hwy 147,then south on PA Hwy 147 to junctionPA Hwy 61, then south on PA Hwy 61to junction U.S. Hwy 422, then south-east on U.S. Hwy 422 to Junction In-terstate Hwy 276, then east on Inter-state Hwy 276 to the PA-NJ State line,to points in IL. The purpose of thisfiling is to eliminate the gateways ofthe plantsite of Certain-teed ProductsCorp. at Avery, OH, and Whiting, IN.

No. MC 106603 (Sub-No. E103), filedMay 10, 1974. Applicant: DIRECTTRANSIT LINES, INC., P.O. Box8099, Grand Rapids, MI 49508. Appli-cant's representative: Martin J, Lea-vitt, P.O. Box 400, Northville, MI.48167. Materials, equipment, and sup-plies used in the manufacture, instal-lation, or application of roofing orroofing materials (except commoditiesin bulk), restricted to those roofingand roofing materials that are build-ing contractor's equipment, materials,and supplies, from points in DE, MD,NJ, south, on, and east of a line begin-ning at the PA-NJ State line and ex-tending east along Interstate Hwy 276to junction Interstate Hwy 295, thenon Interstate Hwy 295 to Junction U.S.Hwy 206, then south on U.S. Hwy 206to junction NJ Hwy 70, then east onNJ Hwy 70 to junction NJ Hwy 72,then east on NJ Hwy 72 to the Atlantic Ocean, PA on and south of a linebeginning at the OH-PA State lineand extending east along InterstateHwy 80 to junction PA Hwy 147, thensouth on PA Hwy 147 to Junction PAHwy 61, then south on PA Hwy 61 tojunction U.S. Hwy 422, then southeaston U.S. Hwy 422 to junction InterstateHwy 276, then east on Interstate Hwy276 to the PA-NJ State line, VA onand west of a line beginning at theWV-VA State line and extendingsouth alongU.S. Hwy 21 to the VA-NC State line; DC and WV on andwest of a line beginning at the WV-OH State line and extending southalong U.S. Hwy 35 to junction Inter-state Hwy 77, then south on InterstateHwy 77 to junction U.S. Hwy 21, thensouth on U.S. Hwy 21 to the WV-VAState line, to points in IL on and northof a line beginning at the IL-IN State


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line and extending west along IL Hwy17 to junction IL Hwy 29, then southon IL Hwy 29 to junction IL Hwy 116,then west on IL Hwy 116 to junctionU.S. Hwy 67, then south -on U.S. Hwy67 to junction IL Hwy 9, then west onIL Hwy 9 to the IL-IA State line. Thepurpose of this filing is to eliminatethe gateways of the plantsite of Cer-tain-teed Products Corp. at Avery, OH,and Whiting, IN.

No. MC 106603 (Sub-No. E104), filedMay 10, 1974. Applicant: DIRECTTRANSIT LINES, INC., P.O. Box8099, Grand Rapids, MvI 49508. Appli-cant's representative: Martin J. Lea-vitt, P.O. Box 400, Northville, MI.48167. Mateials, equipment, and sup-plies used in the manufacture, instal-lation or application of roofing orroofing materials (except commoditiesin bulk), restricted to those roofingand roofing materials that are build-ing contractor's equipment, materials,and supplies from points in DE, MD(except points on and northwest ofUS. Hwy 220), NJ on and southwest ofa line beginning at the PA-NJ State

>line and extending east along Inter-state Hwy 276 to junction InterstateHwy 295, then on Interstate Hwy 295to junction U.S. Hwy 206, then southon U.S. Hwy 206 to junction NJ Hwy70, then east on NJ Hwy 70 to junctionNJ Hwy 72, then east on NJ Hwy 72 tothe Atlantic Ocean, PA on and north-east of a line beginning at the PA-MDState line and extending north alongU.S. Hwy 219 to junction PA Hwy 31,then west on, PA Hwy 31 to junctionPA Hwy 136, then west on PA Hwy 136to junction PA Hwy 51, north on PAHwy 51 to the PA-OH State line, thennorth along the PA-OH State line toInterstate Hwy 80, then those-pointson and south of a line extending eastalong Interstate Hwy 80 to junctionPA Hwy 147, then south on PA Hwy147 to junction PA Hwy 61, then southon PA Hwy 61 to junction U.S. Hwy422, then southeast on U.S. Hwy 422to junction Interstate Hwy 276, thenon Interstate Hwy 276 to the PA-NJState line, DC, VA on and northeast ofa line beginning at the VA-WV Stateline and extending east along U.S.Hwy 50 to junction U.S. Hwy 17, thenalong U.S. Hwy 17 to the AtlanticOcean, and points in WV on and northof a line beginning at the VA-WVState line and extending along U.S.Hwy 50 to junction U.S. Hwy 220, topoints in IL on, north and west of aline beginning at the IL-MO State lineat Chester, IL, and extending south-east along IL Hwy 3 to junction ILHwy 149, then east on IL Hwy 149 tojunction IL Hwy 13, then east on ILHwy 13 to junction Interstate Hwy 57,then north on Interstate Hwy 57 tojunction U.S. Hwy 50, then west -ofU.S. Hwy 50 to junction U.S. Hwy 51,then east on U.S. Hwy 51 to junctionIL Hwy 16, then east on IL Hwy 16 to

junction Interstate Hwy 57, thennorth on Interstate Hwy 57 to junc-tion Interstate Hwy 74, then east onInterstate Hwy 74 to the IL-IN Stateline, then north along the IL-IN Stateline to IL Hwy 17, then points on andsouth of a line beginning at IL Hwy 17and extending west to Junction ILHwy 29, then south on IL Hwy 29 tojunction IL Hwy 116, then west on ILHwy 116 to junction U.S. Hwy 67, thensouth on U.S. Hwy 67 to Junction ILHwy 9, then west on IL Hwy 9 to theIL-IA State line. The purpose of thisfiling is to eliminate the gateways ofthe plantslte of Certain-teed ProductsCorp. at Avery, OH and Whiting, IN.

No. MC 106603 (Sub-No. E105), filedMay 10, 1974. Applicant: DIRECTTRANSIT LINES, INC., P.O. Box8099, Grand Rapids, MI 49508. Appli-cant's representative: Martin J. Lea-vitt, P.O. Box 400, Northvlle, MI48167. Materials, equipment and sup-plies used in the manufacture, Instal-lation or application of roofing orroofing materials (except commoditiesin bulk), restricted to those roofingand -Toofing materials that are build-ing contractor's equipment, materials,and supplies, from points in DE, MD,on and northeast of a line beginningat the MD-PA State line and extend-ing-along Interstate Hwy 70 to Junc-tion U.S. Hwy 50, then east on U.S.Hwy 50 to junction AD Hwy 404, thenalong MD Hwy 404 to the MD-DEState line, NJ on and southwest of aline beginning at the PA-NJ State lineand extending east along InterstateHwy 276 to junction Interstate Hwy295, then on Interstate Hwy 295 tojunction U.S. Hwy 206, then south onU.S. Hwy 206 to junction NJ Hwy 70,then east on NJ Hwy 70 to junctionNJ Hwy 72, then east on NJ Hwy 72 tothe Atlantic Ocean, and PA on andnortheast of a line beginning at theMD-PA State line and extendingalong Interstate Hwy 70 to JunctionPA Hwy 31, then west on PA Hwy 31to junction PA Hwy 136, then west onPA Hwy 136 to junction PA Hwy 51,then north on PA Hwy 51 to the PA-OH State line, then north along thePA-OH State line to Interstate Hwy80, then those points on and south ofa line extending east along InterstateHwy 80 to Junction PA Hwy 147, thensouth on PA Hwy 147 to Junction PAHwy 61, then south on PA Hwy 61 tojunction US. Hwy 422, then south onU.S. Hwy 422 to junction InterstateHwy 276, then along Interstate Hwy276 to the PA-NJ State line, to pointsin IL bounded by a line beginning atthe IL-MO State line and extendingnorth along Interstate Hwy 57 to Junc-tion U.S. Hwy 50, then west on US.Hwy 50 to Junction US. Hwy 51, thenon U.S. Hwy 51 to junction IL Hwy 16,then east on IL Hwy 16 to junction In-terstate Hwy 57, then south on Inter-state Hwy 57 to junction U.S. Hwy 45,

then south on U.S. Hwy 45 to junctionIL Hwy 1, then south on IL Hwy 1 tothe IL-KY State line. The purpose ofthis filing is to eliminate the gatewaysof the plant site of Certain-teed Prod-ucts Corp. at Avery, OH and Whiting,IN.

No. MC 107012 (Sub-No. E307), filedMay 16, 1974. Applicant: NORTHAMERICAN VAN LINES, INC., P.O.Box 988, Fort Wayne, IN 4680L Appli-cant's representative: David D. Bishopand Gary L Crist (same as above).New Furniture, uncrated, (1) Frompoints in Autauga, Bibb, Blount, Cal-houn. Chambers, Cherokee, Chilton,Clay, Cleburne, Coosa, Cullman,Elmore, Etowah, Jefferson, Lee, Ran-dolph, St. Clair, Shelby, Talladega,and Tallapoosa Counties, AL to pointsin Blenville, Bossier, Caddo, Claiborne,DeSoto, Natchitoches, Red River,Sabine, and Webster Parishes, LA(points in AR). Aroostook, Penobscot,Piscataquis, Somerset, Hancock, Knox,Waldo, and Washington Counties, ME(*Berne, IN). Points in TX (*points inAR). Chittenden, Franklin, GrandIsle, Lamoille, Addison, Orange, Wash-ington. Calendona, Essex and OrleansCounties, VT, Coos, Carroll and Graf-ton Counties, NH (*Berne, IN). (2)From points in Barbour, Bullock,Coffee, Covington, Crenshaw, Dale,Geneva, Henry, Houston, Macon,Montgomery, Pike, and Russell ,Coun-ties, AL, to points in Bienvile, Bossier,Caddo, Claborne, DeSoto, Matchi-toches, Red River, Sabine and WebsterParishes, LA ('points in AR). Bolivar,Carrol, Coahoma, Grenada, Homes,Humphrey, Issaquena, Leflore, Mont-gomery, Quitman, Sharkey, Sunflow-er, Tallahatchie, Warren, Washington,and Yazoo Counties, MS ('points inAR). Andrews, Archer, Baylor, Blanco,Borden, Bosque, Brown, Burnet, Calla-han, Clay, Coke, Coleman, Comanche,Concho, Cooke, Coryell, Crane, Crock-ett, Crosby, Dawson, Denton, Dickens,Eastland, Ector, Edwards, Erath,Fisher, Gaines, Garza, Gillespie,Glascock, Hamilton, Haskell, Hi,Hood, Howard, Irlon, Jack, Johnson,Jones. Kendall, Kent, Kerr, Kimble,King, Knox, Lampasas, Llamo, Lub-bock, Lynn, McCullock, McLennan,Martin, Mason, Menard, Midland,Mills, Mitchell, Montague, Nolan, PaloPinto, Parker, Reagan, Runnels, SanSaba. Schlelcher, Scurry, Shackelford,Somervell, Stephens, Sterling,Stonewall, Sutton. Tarrant, Taylor,Terry, Throckmorton, Tom Green,Upton, Val Verde, Wise, Yoakum,Young, Armstrong, Bailey, Briscoe,Carson, Castro, Childress, Cochran,Coliingsworth, Cottle, Daliam, DeafSmith, Donley, Floyd, Foard, Gray,Hale, Hall, Hansford, Hardeman, Hart-ley, Hemphil, Hockley, Hutchinson,Lamb, Lipscomb, Moore, Motley,Ochiltree, Oldham, Parmer, Potter,Randall, Roberts, Sherman, Swicher,


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Wheeler, Wichita, Wilbarger, Aransas,Atascosa, Bandera, Bee, Bexar,Brooks, Cameron, Dimmit, Duval,Frio, Goliad, Hidalgo, Jim Hogg, JimWells, Kaines, Kenedy, Kinney, Kle-berg, LaSalle, Live Oak, McMullen,Marverick, Medina, Nueces; Real, Re-fugio, San Patricio; Starr, Uvalde,Webb, Willacy, Wilson, Zapata,'Zavala, Brewster, Culberson, El Paso,Hudspeth, Jeff Davis, Loving, Pecos,Presidio, Reeves, Terrell, Ward,Winkler, Anderson, Angelina, Bowie,Camp, Cass, Cherokee, Collins, Dallas,Delta, Ellis, Fannin, Franklin, Frees-tone, Grayson, Gregg, Harrison, Hen-derson, Hopkins, Hunt, Kaufman,Lamar, Marion, Morris, Nacogdoches,Navarro, Panola, Rains, Red River,Rockwall, Rusk, Sabine, San Augus-tine, Shelby, Smith, Titus, Upshur,Van Zandt, and Wood Counties, TX(points in AR). (3) ron points in Col-bert, Fayette, Franklin, Lamar, Lau-derdale, Lawrence, Marion, Pickens,Tuscaloosa, Walker, and WinstonCounties, AL, to points in Avoyelles,Catahoula, Concordia, Evangeline,Grant, LaSalle, Rapides, Saint Landry,Vernon, Acadia, Allen, Beauregard,Calcasieu, Cameron, Jefferson Davis,Lafayette, Vermilion, Bienville, Boss-sier, Caddo, Claiborne, DeSoto, Nat-chitoches, Red River, Sabine and Web-ster Parishes, LA- (points in AR).Points in ME (*Berne, IN) Bolivar,Carrol, Coahoma, Grenada, Holmes,Humphreys, Issaquena, Leflore, Mont-gomery, Quitman, Sharkey, Sunflow-er,,Tallahatchie, Warren, Washington,and Yazoo Counties, MS (*points inAR). Points in NH (*Berne, IN). Pointsin TX (*points in AR). Points in VT(*Berne, IN). (4) From points inDeKalb, Jackson, Limestone, Madison,Marshall, and Morgan Counties, AL,to points in Avoyelles, Catahoula, Con-cordia, Evangeline, Grant, LaSalle,Rapides, Saint Landry, Vernon,Acadia, Allen, Beauregard, Calcasieu,Cameron, Jefferson Davis, Lafayette,Vermilion, Caldwell, East Carroll,Franklin, Jackson, Lincoln, Madison,Morehouse, Ouachita, Rtchland,Tensas, Union, West Carroll, Winn,Bienville, Bossier, Caddo, Claiborne,DeSoto, Natchitoches, Red River,Sabine, and Webster Parishes, LA(*points in AR). Points in ME (*Berne,IN). Bolivar, Carrol, Coahoma, Gren-ada, Homes, Humphreys, Issaquena,Leflore, Montgomery, Quitman, Shar-key, Sunflower, Tallahatchie, Warren,Washington, and Yazoo Counties, MS(points in AR). Points in NH (*Berne,IN). Points in TX (points in AR).Points in VT (*Berne, IN). (5) Frompoints in Baldwin, Butler, Choctaw,Clarke, Conecuh, Dallas, Escambia,Greene, Hale, Lawndes, Marengo,Mobile, Monroe, Perry, Sumter, Wash-ington, and Wilcox Counties, AL, topoints in Blenville, Bossier, Caddo,Claiborne, DeSoto, Natchitoches, Red

River, Sabine, and Webster Parishes,La (points in AR). Points in ME(*Berne, IN). Coos, Cheshire, Hills-boro, Sullivan, Carroll, and GraftonCounties, NH (*Berne, IN). Broome,Cayuga, Chemung, Chenango, Court-land, Delaware, Madison, Onondaga,Ontario, Otsego, Schoharie, Schuyler,Seneca, Tioga, Tompkins, Wayne,Yates, Allegany, Chatauqua, Erie,Genesee, Livingston, Monroe, Niagara,Cattaraugus, Orleans, Steuben, Wyo-ming, Herkimer, Jefferson, Lewis,Oneida, Oswego, St. Lawrence, Clin-ton, Essex, Franklin, Fulton, Hamil-ton, Montgomery, Saratoga, Schenec-tady, Warren and Washington Coun-ties, NY (*points in AR). Cameron,Clarion, Crawford, Elk, Erie, Forest,Jefferson, McKean, Mercer, Potter,Venango, Warren, Allegheny, Arm-strong, Beaver, Butler, Fayette,Greene, Indiana, Lawrence, Somerset,Washington and Westmoreland Coun-ties, PA (points in AR). Benton, Car-roll, Decatur, Giles, Hardin, Hender-son, Henry, Hickman, Houston, Hum-phreys, Lawrence, Lewis, Maury,Perry, Stewart, Wayne, and WeakleyCounties, TN, (*points in AR). An-drews, Archer, Baylor, Blanco, Borden,Bosque, Brown, Burnet, Callahan,Clay, Coke, Coleman, Comanche,Concho, Cooke, Coryell, Crane, Crock-ett, Crosby, Dawson, Denton, Dickens,Eastland, Ector, Edwards, Erath,Fisher, Gaines, Garza, Gillespie,Glasscock, Hamilton, Haskell, Hill,Hood, Howard, Irion, Jack, Johnson,Jones, Kendall, Kent, Kerr, Kimble,King, Knox, Lampasas, Llamo, Lub-bock, Lynn, McCullochN McLennan,Martin, Mason, Menard, Midland,Mills, Mitchell, Montague, Nolan, PaloPinto, Parker, Reagan, Runnels, SanSaba, Schleicher, Scurry, Schackel-ford, Somervell, Stephens, Sterling,Stonewall, Sutton, Tarrant, Taylor,Terry, Throckmorton, Tom Green,Upton, Val Verde, Wise, Yoakum,Young, .Armstrong Bailey, Briscoe,Carson, Castro, Childress, Cochran,Collingsworth, Cottle, Dallam, DeafSmith, Donley, Floyd, Foard, Gray,Hale, Hall, Hansford, Hardeman, Hart-ley, Hemphill, Hockley, Hutchinson,Lamb, Lipscomb, Moore, Motley,Ochiltree, 0jdham, Parmer, Potter,Randall, Roberts, Sherman, Swisher,Wheeler, Wichita, Wilbarger, Brew-ster, Culberson, El Paso, Hudspeth,Jeff Davis, Loving, Pecos, "Presidio,Reeves, Terrell, Ward, Winkler, An-derson, Angelina, Bowie, Camp, Cass,Cherokee, Collin, Dallas, Delta, Ellis,Fannin, Franklin, Freestone, Grayson,Gregg, Harrison, Henderson, Hopkins,Hunt, Kaufman, Lamar, Marion,Morris, Nacogdoches, Navarro, Panola,Rains, Red River, Rockwall, Rusk,Sabine, San Augustine, Shelby, Smith,Titus, Upshur, Van Zandt, and WoodCounties, TX (points in AR). Pointsin VT (*Berne, IN). Brooke, Hancock,

Marshall and Ohio Counties, WV(*points in AR). The purpose of thisfiling is to eliminate the gateways indi-cated by the asterisks above.

No. MC 107012 (Sub-No. E308), filedMay 16, 1974. Applicant: NORTHAMERICAN VAN LINES, INC., P.O.Box 988, Fort Wayne, IN 46801. Appli-cant's representative: David D. Bishopand Gary M. Crist (same as above).New Furniture, uncrated, (1) Frompoints in Butte, Lassen, Modoo,Nevada, Plumas, Shasta, Sierra, Sis-kiyou, and Yuba counties, CA, topoints in Barnes, Cass, Dickey, Kidder,LaMoure,, Logan, McIntosh, Ransom,Richland, Sargent anid StutsmanCounties, ND. (2) From points in Inyo,Fresno, Kings, Tulare, Kern, Los An-geles, Orange, San Luis Obispo, SantaBarbara, Ventura, San Bernardino,Alameda, Alpine, Amador, Calaveras,Colusa, Contra Costa, Eldorado,Madera, Matin, Mariposa, Merced,Mono, Monterey, Napa, Placer, SanBenito, Sacramento, San Francisco,San Joaquin, San Mateo, Santa Clara,Santa Cruz, Solano, Sonoma, Stants.laus, Sutter, Tuolumne, Yolo, Imperi-al, Riverside, and San Diego Counties,CA, to points in ND. (3) From pointsin Glenn, Humboldt, Lake, Mendicino,Tehama, and Trinity Counties, CA, topoints in Adams, Billings, Bowman,Burleigh, Dunn, Emmons, GoldenValley, Grant, Herttinger, Mercer,Morton, Oliver, Sioux, Slope, Stark,Barnes, Cass, Dickey, Kidder, La-Moure, Logan, McIntosh, Ransom,Richland, Sargent, Stutsman, Eddy,Foster, Grand Forks, Griggs, Nelson,Steele, Traill, Benson, Cavalier, Pem-bina, Pierce, Ramsey, Rolette, Sheri-dan, Towner, Walsh, Wells, Bottineau,Burke, McHenry, McLean, Mountrall,Renville, and Ward Counties, ND. Thepurpose of this filing is to eliminatethe gateway of Laramie, WY.

No. MC 107012 (Sub-No. E309), filedMay 16, 1974. Applicant: NORTHAMERICAN VAN LINES, INC., P.O.Box 988, Fort Wayne, IN 46801. Appli.cant's representative: David D. Bishopand Gary M. Crist (same as above).New Furniture, uncrated, (1) Frompoints in Hartford, New London, Tol-land, Windham, and Litchfield coun-ties, CT, to points in AL; Bay, Cal-houn, Escambia, Gulf, Holmes, Jack-son, Okaloosa, Santa Rosa, Walton,and Washington Counties, PL; Bartow,Chattooga, Carroll, Catoosa, Dade,Douglas, Floyd, Gordon, Haralson,Heard, Murray, Paulding, Polk,Walker and Whitfield Counties, GA;Bedford, Bledsoe, Bradley, Coffee,Cumberland, Fentress, Franklin,Grundy, Hamilton, Lincoln, Loudon,McMinn, Marion, Marshall, Meigs,Monroe, Moore, Morgan, Polk, Rhea,Roane, Sequatchie, Van Buren,Warren, Chester, Crockett, Dyer,White, Fayette, Gibson, Hardeman,


8332

NOTICES

Haywood, Lake, Lauderdale, McNairy,Madison, Obion, Shelby, Tipton,Cannon, Cheatham, Clay, Davidson,DeKalb, Dickson, Jackson, Macon,Montgomery, Overton, Pickett,Putnam, Robertson, Rutherford,Smith, Sumner, Trousdale, William-son, Wilson, Benton, Carroll, Decatur,Giles, Hardin, Henderson, Henry,Hickman, Houston, Humphreys, Law-rence, Lewis, Maury, Perry, Stewart,Wayne, and Weakley Counties, TN. (2)From points in Fairfield, Middlesex,and New Haven Counties, CT, topoints in Autauga, Bibb, Blount, Cal-houn, Chambers, Cherokee, Chilton,Clay, Cleburne, Coosa, Cullman,Elmore, Etowah, Jefferson, Lee, Ran-dolph, St. Clair, Shelby, Talladega,Tallapoosa, Colbert, Fayette, Frank-lin, Lamar, Lauderdale, Lawrence,Marion, Pickens, Tuscaloosa, Walker,Winston, DeKaLb, Jackson, Limestone,Madison, Marshall, Morgan, Baldwin,Butler, Choctaw, Clarke, Conecuh,Dallas, Escambia, Greene, Hale,Lawndes, Marengo, Mobile, Monroe,Perry, Sumter, Washington, andWilcox counties, AL; Bay, Calhoun,Escambia, Gulf, Holmes, Jackson,Okaloosa, Santa Rosa, Walton andWashington Counties, FL; Chester,Crockett, Dyer, Fayette, Gibson, Har-deman, Haywood, Lake, Lauderdale,McNairy, Madison, Obion, Shelby,Tipton, Cannon, Cheatham, Clay, Da-vidson, DeKalb, Dickson, Jackson,Macon, Montgomery, Overton, Pick-ett, Putnam, Robertson, Rutherford,Smith, Sumner, Trousdale, William-son, Wilson, Benton, Carroll, Decatur,Giles, Hardin, Henderson, Henry,Hickman, Houston, Humphreys, Law-rence, Lewis, Maury, Perry, Stewart,Wayne, and Weakley Counties, TN.The purpose of this filing is to elimi-nate the gateway of points in KY.

No. MC 107012 (Sub-No. E310), filedMay 16, 1974. Applicant: NORTHAMERICAN VAN LINES, INC., P.O.Box 988, Fort Wayne, IN 46801. Appli-cant's representative: David D. Bishop'and Gary M.- Crist (same as above)'New Furniture, uncrated, (1) From_points in Kent County, DE, to points-in FL; Atkinson, Baker, Ben Hill, Ber-rien, Bibb, Bleckley, Brooks, Calhoun,

!Clay, Chattahoochee, Clinch, Coffee,jColquitt, Cook, Crawford, Crisp, Deca-tur, Dodge, Dooly, Dougherty, Early,

,Echols, Grady, Harris, Houston, Irwin,:Jones, Lamar, Lanier, Lee, Lowndes,Macon, Marion, Meriwether, Miller,Mitchell, Monroe, Muscogee, Peach,

!Pike, Pulaske, Quitman, Randolph,Schley, Seminole, Stewart, Sumter,Talbot, Taylor, Telf air, Terrell,Thomas, Tift, Troup, Turner, Twiggs,Upson, Webster, Wilcox, Worth,Banks, Barrow, Butts, Cherokee,Clarke, Clayton, Cobb, Coweta,Dawson, DeKalb, Elbert, Fannin,Fayette, Forsyth, Franklin, Fulton,Gilmer, Gwinnett, Habersham, Hall,

Hart, Henry, Jackson, Jasper, Lump-kin, Madison, Morgan, Newton,Oconee, Pickens, Rabun, Rockdale,Spalding, Stephens, Towns, Union,Walton, White, Baldwin, Burke, Co-lumbia, Emanuel, Glascock, Greene,Hancock, Jefferson, Jenkins, Johnson,Laurens, Lincoln, McDuffle, Ogleth-orpe, Putnam, Richmond, Tallaferro,Treutlen, Warren, Washington,Wilkes, Wilkinson, Bartow, Chattooga,Carroll, Catoosa, Dade, Douglas,Floyd, Gordon, Haralson, Heard,Murray, Paulding, Polk, Walker andWhitfield Counties, GA; Buncombe,Cherokee, Clay, Graham, Haywood,Henderson, Jackson, McDowell,Macon, Madison, Mitchell, Polk, Ruth-erford, Swain, Transylvania andYancey Counties, NC; Abbeville, An-derson, Greenville, Ocomee, Pickens,Cherokee, Chester, Edgefleld, Green-wood, Lamens, McCormick, NewberrySaluda, Spartanburg, Union and YorkCounties, SC; Boone, Cabell, Lincoln,Logan, Mingo, Putnam, and WayneCounties, WV. (2) From points inSussex County, DE, to points in Char-lotte, DeSota, Glades, Hardee, Hendry,Highlands, Lee, Manatee, Okeechobee,Sarasota, Broward, Collier. Dade,Martin, Monroe, Palm Beach, SaintLucie, Brevard, Citrus, Hernando,Hillsborough, Indian River, Lake,Orange, Osceola, Pasco, Pinellas, Polk,Seminole, Sumter, Volusla, Bay, Cal-houn, Escambla, Gulf, Holmes, Jack-son, Okaloosa, Santa Rosa, Walton,Washington, Columbia, Dixie, Frank-lin, Gadsen, Gilchrist, Hamilton, Jef-ferson, Lafayette, Leon, Liberty, Madi-son, Suwannee, Taylor and WakullaCounties, FL; Atkinson, Baker, BenHill, Berrien, Bibb, Bleckley, Brooks,Calhoun, Chattahoochee, Clay,Clinch, Coffee, Colquitt, Cook, Craw-ford, Crisp, Decatur, Dodge, Dooly,Doughbrty, Early, Echols, Grady,Harris, Houston, Irwin, Jones, Lamar,Lanier, Lee, Lowndes, Macon, Marion,Meriwether, Miller, Mitchell, Monroe,Muscogee, Peach, Pike, Pulaski, Quit-man, Randolph, Schley, Seminole,Stewart, Sumter, Talbot, Taylor, Tel-fair, Terrell, Thomas, Tilt, Troup,Turner, Twiggs, Upson, Webster,

.Wilcox, Worth, Banks, Barrow, Butts,Cherokee, Clarke, Clayton, Cobb,Coweta, Dawson, DeKab, Elbert,Fanniri, Fayette, Forsyth, Franklin,Fulton, Gilmer, Gwinnett, Haber-sham, Hall, Hart, Henry. Jackson,Jasper, Lumpkln, Madison, Morgan.Newton, Oconee, Pickens, Rabun,Rockdale, Spalding, Stephens. Towns,Union, Walton, White, Bartow. Chat-tooga, Carroll, Catoosa, Dade, Doug-las, Floyd, Gordon, Haralson, HeardMurray, Paulding, Polk. Walker andWhitfield Counties, GA; Buncombe,Cherokee. Clay, Graham. Haywood,Henderson, Jackson, McDowell,Macon, Madison, Mitchell, Polk, Ruth-erford, Swain, Transylvania and

Yancey Counties, NC; Abbeville, An-derson, Greenville, Ocomee, Pickens,Cherokee, Chester, Edgefield, Green-wood, Lamens, McCormick, Newberry,Saluda, Spartanburg, Union and YorkCounties, SC; Boone, CabelL Lincoln,Logan, Mingo, Putnam, and WayneCounties, WV. (3) From points In NewCastle County, DE, to points in FL; At-kinson, Baker, Ben Hill, Berrien, Bibb,Bleckley. Brooks, Calhoun, Chatta-hoochee, Clay, Clinch, Coffee, Col-quiltt, Cook, Crawford, Crisp, Decatur,Dodge, Dooly, Dougherty, Early.Echols, Grady, Harris, Houston, Irwin,Jones, Lamar, Lanier, Lee, Lowndes,Macon, Marion, Meriwether, Miller,Mitchell, Monroe, Muscogee, Peach,Pike, Pulaski, Quitman, Randolph,Schley, Siminole, Stewart, Sumter,Talbot, Taylor, Telfair, Terrell,Thomas, Tift, Troup, Turner, Twiggs,Upson, Webster, Wilcox, Worth,Banks, Barrow, Butts, Cherokee,Clarke, Clayton, Cobb, Coweta,Dawson, DeKab, Elbert, Fannin,Fayette, Forsyth, Franklin, Fulton,Gilmer, Gwinnett, Habersham, Hall,Hart,- Henry, Jackson, Jasper, Lump-kin, Madison, Morgan, Newton,Oconee, Pickens, Rabun, Rockdale,Spalding, Stephens, Towns, Union,Walton, White, Baldwin, Burke, Co-lumbia, Emanuel, Glascock, Greene,Hancock, Jefferson, Jenkins, Johnson,Laurens, Lincoln, McDuffle, Ogleth-orpe, Putnam, Richmond, Taliaferro,Treutlen, Warren. Washington,Wilkes, Wilkinson, Appling, Bacon,Brantley, Camden, Charlton, Glynn,Jeff Davis, Long, McIntosh, Montgom-ery, Pierce, Tattnall, Toombs Ware,Wayne, Wheeler, Bartow, Chattooga,Carroll, Catoosa, Dade,_ Douglas,Floyd, Gordon, Haralson, Heard,Murray, Paulding, Polk, Walker andWhitfield Counties, GA; Buncombe,Cherokee, Clay, Graham, Haywood,Henderson, Jackson, McDowellMacon, Madison, Mitchell, Polk, Ruth-erford. Swain, Transylvania andYancey Counties, NC; Abbeville, An-derson, Greenville, Ocomee, Pickens,Cherokee, Chester, Edgefield, Green-wood, Lamens, McCormick, Newberry,Saluda, Spartanburg, Union and YorkCounties, SC; Boone, Cabell, Lincoln,Logan, Mingo, Putnam, and WayneCounties, WV. The purpose of thisfiling is to eliminate the gateway ofponts in TN (except points in Hamb-len County, TN).

No. MC 107012 (Sub-No. E311), filedMay 16, 1974. Applicant. NORTHAMERICAN VAN LINES, INC., P.O.Box 988, Fort Wayne, IN 46801. Appli-cant's representative: David D. Bishopand Gary M. Crist (same as above).New Furniture, uncrated. FTom pointsin DC, to points In FL; Atkinson,Baker, Ben Hill, Berrien, Bibb, Bleck-ley, Brooks, Calhoun, Chattahoochee,Clay, Clinch, Coffee, Colquitt, Cook,Crawford, Crisp, Decatur, Dodge,


8333

NOTICES

Dooly, Dougherty, Early, Echols,Grady, Harris, Houston, Irwin, Jones,Lamar, Lanier, Lee, Lowndes, Macon,Marion, Meriwether, Miller, Mitchell,Monroe, Muscogee, Peach, Pike, Pu-laski, Quitman, Randolph, Schley,Seminole, Stewart, Sumter, Talbot,Taylor, Telfair, Terrell, Thomas, Tilft,Troup, Turner. Twiggs, Upson, Web-ster, Wilcox, Worth, Banks, Barrows,Butts, Cherokee, Clarke, Clayton,Cobb, Coweta, Dawson, De Kalb,Elbert, Fannin, Fayette, Forsyth,Franklin, Fulton, Gilmer, Gwinnett,Habersham, Hall, Hart, Henry, Jack-son, Jasper, Lumpkin, Madison,Morgan, Newton, Oconee, Pickens,Rabun, Rockdale, Spalding, Stephens,Towns, Union, Walton, White, Bal-dwin, Burke, Columbia, Emanuel,Glascock, Greene, Hancock, Jefferson,Jenkins, Johnson, Laurens, Lincoln,McDuffie, Oglethorpe,. Putnam, Rich-mond, Taliaferro, Treutlen, Warren,,Washington, Wilkes, Wilkinson, Ap-pling, Bacon, Brantley, Camden,Charlton, Glynn, Jeff Davis, Loig,McIntosh, Montgomery, Pierce, Tatt-nail, Toombs, Ware, Wayne, Wheeler,Bartow, Chattooga, Carroll, Catoosa,Dade, Douglas, Floyd, Gordon, Haral-son, Heard, Murray, Paulding, Polk,Walker and Whitfield Counties, GA;Buncombe, Cherokee, Clay, Graham,Haywood, Henderson, Jackson,McDowell, Macon, Madison, Mitchell,Polk, Rutherford, Swain, Transylvaniaand Yancey Counties, NC; Abbeville,Anderson, Greenville, Ocomee, Pick-ens, Cherokee, Chester, Edgefield,Greenwood, Lamens, McCormick,Newberry, Saluda, Spartanburg,Union, and York Counties, SC. Thepurpose of this filing is to eliminatethe gateway of points TN (exceptpoints in Hamblen County, TN).

No. MC 107515 (Sub-No. E249), filedMay 29, 1974. Applicant: REFRIGER-ATED TRANSPORT CO., INC., P.O.Box 308, Forest Park, GA 33050. Ap-plicant's representative: Bruce E.Mitchell, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Cannedmeats, canned meat products, andcanned meat pyproducts (excepthides) from the plantsite of Armour &Co., near Sterling, IL, to Houston andSan Antonio, TX, and their commer-cial zones and that protion of TX on,east, and south of a line extendingfrom the TX-Mexico border at Laredo,TX, on Interstate Hwy 35 to San Anto-nio, TX, then.on Interstate Hwy 10 tothe TX-LA State line. Restriction:The authority granted herein may notbe tacked with any other authorityheld by carrier so as to perform athrough service via the point of originnear Sterling, IL. The purpose of thisfiling is to eliminate the gateway ofLewisburg, TN.

No. MC 107515 (Sub-No. E253), filedMay 29, 1976. Applicant: REFRIGER-

ATED TRANSPORT CO., INC., P.O.Box 308, Forest Park, GA 33050. Ap-plicant's representative: Bruce E.Mitchell, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326; Meats,meat products, and meat byproductsas described in section A of Appendix1 to the report in Descriptions inMotor Carrier Certificates, 61 MCC209 and 766 (except commodities inbulk, in tank vehicles and hides); fromthe plantsite of Armour & Co., nearSterling, IL, to that portion of VA on,south, and east of a line extendingfrom the NC-VA State line on Inter-state Hwy 81 to its junction with U.S.Hwy 460, then on U.S. Hwy 460 to itsjunction with .U.S. Hwy 360 to Rich-mond, VA, and its commercial zone,thence on U.S. Hwy 60 to Norfolk, VA,and its commercial zone and the At-lantic Ocean. Restrictions: (1) The au-thority granted herein may not betacked with any other authority heldby carrier so as to perform a throughservice via the points of origin nearSterling, IL. (2) The operations autho-rized herein are restricted against thetransportation of traffic originating atNashville, TN. The purpose of thisfiling is to eliminate the gateway ofMadison, TN.

No. MC 107515 (Sub-No. E513), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 33050.Applicant's representative: R. M. Tett.lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Meats,meat products, meat byproducts, as de-scribed in section A of Appendix I tothe report in Descriptions in MotorCarrier Certificates, 61 MCC 272 and766 from Arkansas City, KS, to pointsin VA on and east of U.S. Hwy 1. Thepurpose of this filing is to elimiate thegateway of Atlanta, GA.

No. MC 107515 (Sub-No. E515), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 33050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. (1)Meats, meat products, meat byprod-ucts (except canned goods) as definedin'section A of Appendix 1 to thereport in Descriptions in Motor Carri-er Certificates, 61 MCC 766, andfrozen foods, from Houston, TX, toOH and that portion of MI on andeast of a line beginning at the IN/MIState line on MI Hwy 66 to junctionMI Hwy,15, then along MI Hwy 115to junction MI Hwy 37 then along MIHwy 37 to Lake MI at or near TraverseCity, MI; (2) meats, meat products,and meat byproducts as described inAppendix I to the report in Descrip-tions in Motor Carrier Certificates,61MCC 209 and 766, from Galveston,TX, and the plantsite of Armour &Co., located 7 miles north of Houston,

TX, to the territory in (1) above: and(3) frozen foods, meats, meat products,and meat byproducts, as described InAppendix I to the report in Descrip.tions in Motor Carrier Certificates, 61MCC 209 and 766, from San Antonio,TX, to that portion of OH on and eastof a line beginning at the WV-OHState line on Interstate Hwy 77 tojunction OH Hwy 21, then along OHHwy 21 to Lake Erie at or near Cleve-land, OH. The purpose of this filing isto eliminate the gateways of Atlanta,GA, and Louisville, KY.

No. MC 107515 (Sub-No. E527), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 33050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Unfro-zen fresh and cured meats, (1) fromLos Angeles, CA, to VA, NC, SC, WVA,MD, DC, PA, NY, NJ, DE, CT, RI, MA,VT NH, ME, points in KY, on or eastof U.S. Hwy 31W, and points in OH,on, south, or east of Interstate Hwy71; and (2) from San Jose and SanFrancisco, CA, to VA, NC, SC, WVA,MD, NJ, DE, CT, RI, MA, VT, NH,ME, points in PA on or east of Inter-state Hwy 81, and points in NY, on,east, or south of a line beginning atthe NY/PA State line and extendingover Interstate Hwy 81 to junction NYHwy 12, then over NY Hwy 12 to junc-tion NY Hwy 28, then over NY Hwy 28to NY Hwy 30, then over NY Hwy 30to junction NY Hwy 3, then over NYHwy 3 to junction Interstate Hwy 87,then over Interstate Hwy 87 to theUnited States/Canadian Border. Thepurpose of this filing is to eliminatethe gateways, of Atlanta, GA: Atlanta,GA, and Louisville, KY; Atlanta, GA,and Gatesville, NC.

No. MC 107515 (Sub-No. E546), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 30050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozenfoods (1) from points in that portionof TX on or east of a line beginning atthe OK-TX State line and extendingalong U.S. Hwy 271 to Junction U.S.Hwy 69, then over U.S. Hwy 69 tojunction U.S. Hwy 79, then over U.S.Hwy 79 to junction TX Hwy 19, thenover TX Hwy 19 to Interstate Hwy 45,then over Interstate Hwy 45 to junc-tion TX Hwy 288, then over U.S. Hwy288 to the Gulf of Mexico at Freeport,TX, to Blaine, WA, (2) from Houston,TX, to points in that part of WA, onor north of a line beginning at SimiikBeach and extending along WA Hwy536 to junction WA Hwy 20. then overWA Hwy 20 to Junction InterstateHwy 5 then over 155 to Junction U.S.Hwy 2 then over U.S. Hwy 2 to the ID-WA State line; points in ID on or


8334

8335NOTICES

north of Inter~tate Hwy 90; and pointsin MT on, north or west of a line be-ginning at the ID-MT State line andextending along U.S. Hwy 12 to junc-tion U.S. Hwy 93, then over U.S. Hwy93 to junction U.S. Hwy 2, then overU.S. Hwy 2 to junction US. Hwy 89,then over U.S. Hwy 89 to U.S. Hwy-Ca-nadian border (3) from Beaumont, TX,to (a) points in that portion of OR onor west of U.S. Hwy 395 (b) points inthat portionof OR on or north of U.S.Hwy 20 (c) all points in WA (d) pointsin ID on, north, or west of a line be-ginning at the OR-ID State line andextending along ID Hwy 52 to junc-tion ID Hwy 55, then over ID Hwy 55to junction U.S. Hwy 95, then overU.S. Hwy 95 to junction U.S. Hwy 12,then over U.S. Hwy 12 to the MT-IDState line; and (3) to all points in MT(4) from Galveston, TX, to (a) pointsin WA (except Franklin, Benton,Kl~ckitat, Skamania, Clark and Cow-litz, Counties); (b) points in ID on ornorth of US. Hwy 12; (c) points in MTon or north of a line beginning at theID-MT State line and extending alongUS. Hwy 12 to junction MT Hwy 200to junction U.S. Hwy 89, then overU.S. Hwy 89 to junction InterstateHwy-15, then over Interstate Hwy 15to U.S. Hwy Canadian boundary (5)from points in that part of TX on,south or east of a line beginning at theAR-TX State line and extending alongU.S. Hwy 59 to junction US. Hwy 80,then over U.S. Hwy 80 to junction U.S.Hwy 259, then over U.S. Hwy 259 tojunction U.S. Hwy 59, then over U.S.Hwy 59 to junction U.S. Hwy 69, thenover U.S. Hwy 69 to Port Arthur, TX,to Portland and Milwaukee, OR; thatpart of OR on, north or west of a linebeginning at Newport and extendingalong U.S. Hwy 20 to Interstate Hwy 5,then over Interstate Hwy 5 to WA-ORborder that portion of WA on, northor west of a line beginning at WA-ORState line and extending along Inter-state Hwy 5 to junction U.S. Hwy 12,then over U.S. Hwy 12 to junction U.S.Hwy 97, then over US. Hwy 97 tojunction Interstate Hwy 90, then overInterstate Hwy 90 to the ID-WA Stateline; points in ID on, or north of Inter-state Hwy 90; and points in MT as de-scribed in 4(c) above. (6) From Texar-kana, TX, to OR, WA; to that portionof ID on, north or west of a line begin-ning at the ID-OR State line and ex-tending along U.S. Hwy 95 to junctionID Hwy 55, then over ID Hwy 55 tojunction Interstate Hwy 80N, thenover Interstate. Hwy 80N to ID Hwy68, then over ID Hwy 68 to junctionUS. Hwy 93, then over US. Hwy 93 tothe ID-MT State line and to all pointsin MT. Restriction: Said operationsare restricted against the transporta-tion of (1) frozen fruits, berries, andvegetables, and (2) canned foodstuffsoriginating at Houston, TX, and pointsin its commercial zone as defined by

the Commission, destined to points InAL, NC, SC, Jacksonville and points InEscambla and Santa Rosa Counties,FL, and Atlanta, GA. and points in itscommercial zone as defined by theCommission. (3) meats, meat and meatbyproducts as defined by the Commis-sion and (4) commodities in bulk, invphicles equipped with mechanical re-frigeration. The purpose of this filingIs to eliminate the gateways of Wood-stock, TN and Gilestown, TN.

No. MC 107515 (E569). filed January27, 1975. Applicant: REFRIGERATEDTRANSPORT CO., INC., P.O. Box308, Forest Park, GA 30050. Appli-cant's representative: R. 3L Tettle-baum, Suite 375, 3379 Peachtree RoadNE., Atlanta, GA 30326. Fresh andcured meat (1) from Atlanta, GA. andpoints within 10 miles of Atlanta andGriffin, GA and points within 5 milesof Griffin, GA, to CA. WA and OR; (2)from Albany, GA. and points within 5miles of Albany, GA, to WA. OR andthat part of CA on and north of a linebeginning at the NV-CA State line onInterstate Hwy 15 to Junction CA Hwy138, then along CA Hwy 13 to junctionInterstate Hwy 5, then along Inter-state Hwy 5 to Junction CA Hwy 126,then along CA Hwy 126 to the PacificOcean at or near Ventura, CA; (3)from Columbus, GA. to OR, WA. andthat portion of CA on and north of aline beginning at the CA-NV State lineon CA Hwy 168 to Junction U.S. Hwy395, then along U.S. Hwy 395 to Junc-tion CA Hwy 178, then along CA Hwy178 to Junction CA Hwy 155, thenalong CA Hwy 155 to Junction CA Hwy99, then along CA Hwy 99 to junctionCA Hwy 198, then along CA Hwy 198to junction CA Hwy 41, then along CAHwy 41 to the Pacific Ocean; and (4)from Macon, GA, and points within 5mines of Macon, GA, Montezuma, GA.and points within 5 miles of Montezu-ma, GA. to OR. WA, and points in CAon and north of a line beginning at theNV-CA State line on Interstate Hwy40 to junction Interstate Hwy 15, thenalong Interstate Hwy 15, to JunctionUS. Hwy 395, then along U.S. Hwy395 to junction Interstate Hwy 10,then along Interstate Hwy 10 to thePacific Ocean at or near SantaMonica, CA. The purpose of this filingIs to eliminate the gateway of Bristol,TN.

No. MC 107515 (Sub-No. E572), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT -CO., INC.,P.O. Box 308, Forest Park, GA 30050.Applicant's representative: R. M. Tett-lebaum. Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozenfoods, in vehicles equipped with me-chanical refrigeration (a) from thatportion of IN, on, north, or east of aline beginning at the OH-IN State lineand extending along US. Hwy 35 to Itsjunction with IN Hwy 3. then over IN

Hwy 3 to its Junction with IN Hwy124, then over IN Hwy 124 to its junc-tion with IN Hwy 5. then over IN Hwy5 to its Junction with US. Hwy 33,then over US. Hwy 33 to its junctionwith IN Hwy 19, then over IN Hwy 19south to the IN-MI State line topoints in CA on. south or west of a linebeginning at San Francisco and ex-tending along Interstate Hwy 80 toJunction CA Hwy 17, then over CAHwy 17 to Its Junction with InterstateHwy 580, then over Interstate Hwy580 to its Junction with InterstateHwy 5 at Tracy, CA, then over Inter-state Hwy 5 to the United States-Mexican boundary line; and (b) frompoints in IN on, north, or east of US.Hwy 33 to points in that portion of AZon or west of a line beginning at theUnited States-Mexican border at No-gales and extending along U.S. Hwy 89to US. Hwy 93, then over US. Hwy 93to its Junction with Interstate Hwy 40,then over Interstate Hwy 40 to theAZ-CA border and to points in thatportion of CA on, south, or west of aline beginning at the CA-AZ State lineat Needles and extending along US.Hwy 66 to Its junction with CA Hwy58, then over CA Hwy 58 to its junc-tion with CA Hwy 99, then over CAHwy 99 to Its junction with CA Hwy132. then over CA Hwy 132 to its junc-tion with Interstate Hwy 580, thenover Interstate Hwy 580 to its junctionwith Interstate Hwy 80, then over In-terstate Hwy 80 to San Francisco. Thepurpose of this filing is to eliminatethe gateways of Detroit, MI, and Co-lumbus, OH.

No. MC 107515 (Sub-No. E584), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, Ga 30050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, Ga 30326. Frozenfood,% in vehicles equipped with me-chanical refrigeration (1) From pointsin CA to VA. MA, CO, NJ, DE, DC,points in that part of PA on or east ofa line beginning at the MD-PA Stateline and extending along U.S. Hwy 220to Its Junction with US. Hwy 15, thenalong US. Hwy 15 to the NY-PA Stateline and points in their commercialzones, and points in that part of NYon or east of a line beginning at theUnited States-Canadian boundary andextending along NY Hwy 30 to itsJunction with NY Hwy 28, then overNY Hwy 28 to Its junction with Inter-state Hwy 90, then over InterstateHwy 90 to its Junction with InterstateHwy 81, then over Interstate Hwy 81to its junction with NY Hwy 13, thenover NY Hwy 13 to Its junction withNY Hwy 14, then over NY Hwy 14 tothe NY-PA State line; (2) from pointsIn CA on, south, or west of a line be-ginning at the international boundaryline of the United States and Mexicoand extending along CA Hwy 86 to its


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junction with Interstate Hwy 10, thenover Interstate Hwy 10 to its junctionwith Interstate Hwy 5, then over In-terstate Hwy 5 to its junction withCalifornia Hwy 152, then over CA Hwy152 to its junction with CA Hwy 1then over CA Hwy 1 to the PacificOcean at Santa Cruz, CA, to NY; (3)from points in that part of CA on,south, or west of a line beginning atthe international boundary line dndthe United States and Mexico and ex-tending along CA Hwy 86 to its. junc-tion with Interstate Hwy 10, then overInterstate Hwy 10 to its junction withInterstate Hwy 5, then over InterstateHwy 5 to its junction with InterstateHwy 580, then over Interstate Hwy580 to its junction with CA Hwy 17,then over CA Hwy 17 to CA Hwy 92,then over CA Hwy 92 to its junctionwith CA Hwy 1, then over CA Hwy 1to the Pacific Ocean near El Granada,CA, and points in their commercialzones, to *points in PA; and (4) fromSan Francisco and San Bruno, CA, topoints in PA. In 1 through 4 abovewith no transportation for compensa-tion on return except as otherwise au-thorized. The purpose of this filing isto eliminate the gateway of RockyMount, NC.

No. MC 107515 (Sub-No. E585), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 30050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozenfoods, in vehicles equipped with me-chanical refrigeration: (1) From pointsin OH to points in San Diego, Orange,Los Angeles, Ventura, and Santa Bar-bara Counties, CA, (2) from points inOH and Richmond, IN, to Carson City,NV, and points in CA on or west ofU.S. Hwy 395, (3) from points in OH toall points in WA and to those points inOR on or west of U.S. Hwy 395 and topoints In ID on or west of U.S. Hwy 95,and (4) from points in that portion ofOH on or east of a line beginning atthe OH River and extending alongU.S. Hwy 23 to its junction with U.S.Hwy 50, then over U.S. Hwy 50 tojunction OH Hwy 28, then over OHHwy 28 to junction OH Hwy 72, thenover OH Hwy 72 to its junction withU.S. Hwy 68, then over U.S. Hwy 68 toits junction with Interstate Hwy 75,then over Interstate Hwy 75 to theOH-MI State line to points in OR andID. The purpose of this filing is toeliminate the gateways of Detroit, MI,and Columbus, OH.

No. MC 107515 (Sub-No. E586), filed,January 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 30050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozenfoods, in vehicles equipped with me-

chanical refrigeration: (1) From pointsin that part of OH on, north, or eastof a line beginning at the OH-IN Stateboundary line and extending alongU.S. Hwy 30 to its junction with U.S.Hwy 30S, then over U.S. Hwy 30S toits junction with U.S. Hwy 23, thenover U.S. Hwy-23 to its junction withU.S. Hwy 35, then over U.S. Hwy 35 tothe OH-WV State boundary line topoints in AZ; and (2) from points inthat part of OH on, north, or east of aline beginning at the OH River and ex-tending along OH Hwy 247 to its june-

'tion with U.S. Hwy 62, then over U.S.Hwy 62 to its junction with OH Hwy72, then over OH Hwy 72 to its junc-tion with U.S. Hwy 68, then over U.S.Hwy 68 to its junction with U.S. Hwy33, then over U.S. Hwy 33 to the IN-OH State line to points in AZ, on,west, and south of a line beginning atthe United States/Mexican border ator near Nogales and extending alongU.S. Hwy 89 to its junction with U.S.Hwy 60, then over U.S. Hwy 60 to theAZ/CA State line. The purpose of thisfiling is to eliminate the gateway ofDetroit, MI, and Columbus, OH.

No. MC 107515 (Sub-No. E587), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 30050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozenfoods, in vehicles equipped with me-chanical refrigeration: (1) From pointsin that part of OH on, north, or eastof a line beginning at the OH-KY"State line and extending along U.S.Hwy 68 to junction U.S. Hwy 35, thenover U.S. Hwy 35 to Dayton, then overOH Hwy 49 to Greenville, then overOH Hwy 571 to the OH-IN State linenear Union City to Las Vegas, NV, (2)from all points in OH to Storey, Doug-las, and Lyon Counties, N.V. The pur-pose of this filing is to eliminate thegateways of Detroit, MI, and Colum-bus, OH.

No. MC 107515 (Sub-No. E594), filedJanuary 27, 1975. Applicant: REFRIG-ERATED TRANSPORT CO., INC.,P.O. Box 308, Forest Park, GA 30050.Applicant's representative: R. M. Tett-lebaum, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozen'foods, in vehicles equipped with me-chanical refrigeration: (1) From NCand SC, to AZ, CA, CO, MT, NV, NM,OR, UT, WA and WY, (2) from GA, toCO, ID, MT, NV, OR, UT, WA, andWY. The purpose of this filing is toeliminate the gateway of the State ofTN (except Memphis and its commer-cial zone), (3) frozen foods (exceptfrozen citrus products to CO, ID, MT,and WY), (a) from FL, to ID, MT, OR,UT, WA, WY, that portion of CO onand north of a line beginning at theCO-KS State line on U.S. Hwy 24 tojunction U.S. Hwy 50, then along U.S.

Hwy 50 to the CO-UT State line andthat portion of NV on and south ofU.S. Hwy 50, (b) from that portion ofFL on and east of U.S. Hwy 319, to NVand CO. The purpose of this filing isto eliminate the gateways of Doraville,GA, and Dyersburg, TN.

No. MC 107515 (Sub-No. E623). filedFebruary 13, 1976. Applicant: RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Serby, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Meats,meat products, and meat byproducts(except in bulk) as described in sectionA of appendix 1, to the-report in De-scriptions in Motor Carrier Certifi-cates, 61 MCC 209, In vehiclesequipped with mechanical refrigera-tion: (1) From points in that part ofVA commencing at the VA-WV Stateline over U.S. Hwy 250 to junction In-terstate Hwy 64, then over InterstateHwy 64 to junction VA Hwy 33, thenover Hwy 33 to Chesapeake Bay at ornear Bushy, VA, and points in VA onthe DE-MD-VA Peninsula, to pointsin IL; (2) from points in VA to pointsin IL on or south of a line commencingat the IL-IN Hwy State line and ex-tending over U.S. Hwy 50 to junctionIL Hwy 127, then over IL Hwy 127 tojunction IL Hwy 16, then over IL Hwy16 to junction IL Hwy 267, then overIL Hwy 267 to junction IL Hwy 106,then over IL Hwy 106 to junction U.S.Hwy 36, then over U.S. Hwy 36 tojunction U.S. Hwy 54, then over U.S.Hwy 54 to IL-MO State line at or nearPike, IL. Restrictions: (1) All authoritysought herein is restricted to thetransportation of shipments whichoriginate at or are destined to pointsin NY, CO, MA, RI, NJ, PA, MD, DE,VA, DC, KY, NC, SC, TN, GA, AL, FL,MS, AR, LA, OK, TX, AZ, CA, andNM. (2) All of the authority hereinshall expire on December 18, 1978,unless on or prior to that date theCommission shall renew the certificateissued to carrier in MC 107515 (Sub-No. 799). The purpose of this filing isto eliminate the gateway of Bristol,VA.

No. MC 107515 (Sub-No. E624), filedFebruary 13, 1976, Applicant: RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Serby, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. (1)Frozen fruits and vegetables: Frompoints in VA, DE, NJ, CT, RI, and DC;that protion of MA on or east of Inter-state Hwy 91, New York City, NY,points in PA on, south, or east of U.S.Hwy 1, points in MD on or east of U.S,Hwy 15 to points in MO on, south, orwest of a line commencing at the IL-MO State line and extending over In-terstate Hwy 270 to junction Inter-state Hwy 70, then over Interstate


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Hwy 70 to junction U.S. Hwy 65, thenover U.S. Hwy 65 to junction U.S. Hwy36, then over U.S. Hwy 36 to the MO-KS State line; (2) salads and sandwichspreads from points in the origin terri-tory in (1) above to all points in KSand that portion of IL on and south ofU.S. Hwy 460; (3) salads and sandwichspreads from points in VA on or southof a line commencing at the VA-WVState line and extending over U.S.Hwy 460 to junction U.S. Hwy 360,then over U.S. Hwy 360 to junction VAHwy 33, then over VA Hwy 33 to theChesapeake Bay at or near LocustHill, VA, to points in ND, SD, IA andpoints in IN on or south or west of aline beginning at the KY-IN State lineand extending over U.S. Hwy 150 tojunction IN Hwy 37, then over IN Hwy37 to junction IN Hwy 46, then overIN Hwy 46 to junction U.S. Hwy 231,then over U.S. Hwy 231 to junctionU.S. Hwy 136, then over U.S. Hwy 136to junction U.S. Hwy 41 then over U.S.Hwy 41 to junction U.S. Hwy 24, thenover U.S. Hwy 24 to the IL-IN Stateline; points in IL on, south, or west ofa line commencing at the IL-IN Stateline and extending over U.S. Hwy 24 tojunction IL Hwy 47, then over IL Hwy47 to junction U.S. Hwy 34, then overU.S. Hwy 34 to junction U.S. Hwy 51,then over U.S. Hwy 51 to IL-WI Stateline; and points in WI on, north, orwest of a line commencing at the WI-IL State line and extending over U.S.Hwy 51 to junction WI Hwy 59, thenover WI Hwy 59 to junction U.S. Hwy18, then over U.S. Hwy 18 to Milwau-kee and Lake MI; (4) frozen fruits andvegetables from points in the territorydescribedin (3) above to points in MO,MN, NE, and that portion of WI speci-fied in (3) above. Restrictions: (1) Allauthority sought herein is to be re-stricted to transportation -in vehiclesequipped with mechanical refrigera-tion. (2) All authority sought herein Isto exclude commodities in bulk. (3) Allauthority sought herein is restrictedto the transportation of shipmentswhich originate at or are destined topoints in NY, CT, MA, RI, NJ, PA,MD, DE, VA, DC, KY, NC, SC, TN,GA, AI;, FL, MS, AR, LA, OK, TX, AZ,CA, and NM. (4) All of the authorityherein shall expire on December 18,1978, unless on or prior to that datethe Commission shall renew the Certi-ficate issued to carrier in MC 107515(Sub-No. 799). The purpose of thisfiling is to eliminate the gateway ofKnoxville, TN.

No. MC 107515 (Sub-No. E625), filedFebruary 13, 1976. Applicant: RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Serby, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Cheese(except in bulk) in vehicles equippedwith mechanical refrigeration, frompoints in VA, MD, DE, NJ, NY, PA.

MA, RI, and DC to points in CA, OR,and WA. Restrictions: (1) All author-ity sought herein is restricted to thetransportation of shipments whichoriginate at or are destined to pointsin NY, CT, MA, RI, NJ, PA. MD, DE,VA. DC, KY, NC, SC, TN, GA, AL, P14MS. AR, LA, OK, TX AZ, CA, andNM. (2) All of the authority hereinshall expire- on December 18, 1978,unless on or prior to that date theCommission shall renew the Certifi-cate Issued to carrier in MC 107515(Sub-No. 799). The purpose of thisfiling is to eliminate the gateways ofNashville, TN, or Lousiville, KY.

No. MC 107515 (Sub-No. E626), fliedFebruary 13, 1976. Applicant* RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Serby, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozenfoods (except in bulk) in vehiclesequipped with mechanical refrigera-tion, from Suffolk, VA. to points inM I. Restrictions: (1) All authoritysought herein Is restricted to thetransportation of shipments whichoriginate at or are destined to pointsin NY, CT, MA, RI, NJ, PA. MD, DE,VA. DC, KY, NC, SC, TN, GA. AL, FL,MS. AR, LA. OK, TX AZ, CA, andNM. (2) All of the authority hereinshall expire on December 18, 1978,unless on or prior to that date theCommission shall renew the Certifi-cate issued to carrier in MC 107515(Sub-No. 799). The purpose of thisfiling is to eliminate the gateway ofRocky Mount, NC.

No. MC 107515 (Sub-No. E627), filedFebruary 13, 1976. Applicant: RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Selby, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozenfoods, (except in bulk) in vehiclesequipped with mechanical refrigera-tion, from Suffolk, VA, to points inErie and Niagara Counties, NY. Re-strictions: (1) All authority soughtherein is restricted to the transporta-tion of shipments which originate ator are destined to points in NY, CT,MA, RI, NJ, PA, MD, DE, VA, DC,KY, NC, SC, TN, GA, AL, FI MS, AR,LA. OK, TX, AZ, CA, and NM. (2) Allof the authority herein shall expire onDecember 18, 1978, unless or prior tothat date the Commission shall renewthe Certificate Issued to carrier in MC107515 (Sub-No. 799). The purpose ofthis filing is to eliminate the gatewayof Rocky Mount, NC.

No. MC 107515 (Sub-No. E628), filedFebruary 13, 1976. Applicant: RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Selby, Suite 375, 3379 PeachtreeRoad NE., Atlanta, GA 30326. Frozen

foods, (except in bulk) in vehiclesequipped with mechanical refrigera-tion from Bristol, VA, to points in MA.and points in CT on, north, or east ofa line commencing at the NY-CTState line and extending over Inter-state Hwy 84 to Junction CT Hwy 34,then over CT Hwy 34 to New Haven.CT, and points in NY on, north, oreast of a line beginning at the NY/CTState line and extending over NY Hwy35 to junction U.S. Hwy 9, then overU.S. Hwy 9 to Junction NY Hwy 73,then over NY Hwy 73 to junction NYHwy 3, then over NY Hwy 3 to junc-tion NY Hwy 30, then over NY Hwy 30to the international boundary line ator near Trout River, NY. Restrictions:(1) All authority sought herein is re-stricted to the transportation of ship-ments which originate at or are des-tined to points In NY, CT, MA, RL NJ,PA. MD , DE, VA, DC, KY, NC, SC,TN, GA, AI FL, MS. AR, LA, OK,TX, AZ, CA. and NM. (2) All of the au-thority herein shall expire on Decem-ber 18, 1978, unless on or prior to thatdate the Commission shall renew theCertificate Issued to carrier in MC107515 (Sub-No. 799). The purpose ofthis filing Is to eliminate the gatewayof Rocky Mount, NC.

No. MC 107515 (Sub-No. E629), filedFebruary 13, 1976. Applicant: RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Serby, Suite 375, 3379 PeachtreeRoad. NE., Atlanta, GA 30326. Frozenfoods (except in bulk), in vehiclesequipped with mechanical refrigera-tion from Suffolk, VA, to points inthat part of OH on, north and west ofa line commencing at the OH-KYState line and extending over U.S.Hwy 23 to Its junction with OH Hwy124, then over OH Hwy 124 to its junc-tion with OH Hwy 93, then over OHHwy 93 to Its Junction with U.S. Hwy33, then over U.S. Highway 33 to itsJunction with OH Hwy 37, then overOH Hwy 37 to its Junction with Inter-state Hwy 70, then over InterstateHwy 70 to its Junction with OH Hwy13, then over Hwy 13 to its Junctionwith OH Hwy 3, then over OH Hwy 3to its Junction with US. Hwy 42 at ornear Parma, OH, then over U.S. Hwy42 to Cleveland, OH. Restrictions: (1)Restricted to the transportation ofshipments which originate at or aredestined to points in NY, CZ, NA, RLNJ, PA, MD, DE, VA, DC, KY, NC, SC,TN, GA, A1, FL, MS, AR, LA, OK,TX, AZ, CA, and NIL (2) All of the au-thority herein shall expire on Decem-ber 18, 1978, unless on, or prior to thatdate the Commission shall renew theCertificate Issued to carrier in MC107515 (Sub-No. 799). The purpose ofthis filing is to eliminate the gatewayof Rocky Mount, NC.

No. MC 107515 (Sub-No. E630) filedFebruary 13, 1976. Applicant: RE-


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FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Serby, Suite 375, 3379 PeachtreeRoad NE, Atlanta, GA 30326. Fresh

-fruits and vegetables, in packages, andunfrozen meats and meat products(except in bulk), In vehicles equippedwith mechanical refrigeration fromSuffolk, VA, to Washington, DC, Balti-more, MD, ,and points in PA, NJ, NY,CT, RI, MA, ME, NH, and VT. Restric-tions: (1) Restricted against joinder ortacking for the purpose of performingthrough service from Columbus, OH,Cudahy and Madison, WI, KansasCity, KS-MO, St. Joseph and St.Louis, MO, East St. Louis, Sterling,Momence, and Rochelle, IL, Coving-ton, KY, West Point, NE, and pointsin IA and MN to points in MD, VA,and the DC. (2) Restricted to thetransportation of shipments whichoriginate at or are destined to pointsin NY, CT, MA, RI, NJ, PA, MD, DE,VA, DC, KY, NC, SC, TN, GA, AL, FL,MS, AR, LA, OK, TX, AZ, CA, andNM. (3) All of the authority hereinshall expire on December 18, 1978,unless on or prior to that date theCommission shall renew the certificateissued to carrier in MC 107515 (Sub-No. 799). The purpose of this filing isto eliminate the gateway of Gatesville,NC.

No. MC 107515 (Sub-No. E631), filedFebruary 13, 1976. Applicant: RE-FRIGERATED TRANSPORT CO.,INC., P.O. Box 308, Forest Park, GA30050. Applicant's representative: AlanE. Serby, Suite 375, 3379 PeachtreeRoad, NE, Atlanta, GA 30326. Frozenfoods (except sugar and commoditiesin bulk), in vehicles equipped with me-chanical refrigeration (1) from NY,CT, RI, MA, PA, DE, MD, NJ, VA, andthe DC, to all points in CA, NV, AZ,UT, OR, ID, WA, NM, and points inthat portion of CO on, south, or westof a line beginning at the CO-KSState line and extending over U.S.Hwy 36 to its junction with CO Hwy71, then over CO Hwy 71 to its junc-tion with U.S. Hwy 34, then over U.S.Hwy 34 to its junction with U.S. Hwy40, then over U.S. Hwy 40 to the CO-UT State line; (2) from points in VA,DE, MD, NJ, CT, RI, MA, Washington,DC, and that portion of PA on or eastof a line commencing at the WV-PAState line and extending over U.S.Hwy 22 to its junction with U.S. Hwy119, then over U.S. Hwy 119 to itsjunction with PA Hwy 255, then overPA Hwy 255 to its junction with PAHwy 555, then over PA Hwy 555 to itsjunction with PA Hwy 120, then overPA Hwy 120 to its junction with PAHwy 872, then over PA Hwy 872 to itsjunction with U.S. Hwy 6, then overU.S. Hwy 6 to PA Hwy 449, then overPA Hwy 449 to the NY-PA State line;that portion of NY on or east of a linebeginning at the NY-PA State line

NOTICES

and extending over NY Hwy 19 to itsjunction with NY Hwy 17, then overNY Hwy 17 to its junction with NYHwy 21, then over NY Hwy 21 to Itsjunction with NY Hwy 15, then overU.S. Hwy 15 to Rochester, NY, thenover NY Hwy 18 to Lake Ontario at ornear Sea Breeze, NY, to points in CO,points in WY on, south or west of U.S.Hwy 287, points in MT, on or west of aline commencing at the WY-MT Stateline and extending over U.S. Hwy 191to its jufiction with U.S. Hwy 10, thenover U.S. Hwy 10 to its junction withU.S. Hwy 93, then over U.S. Hwy 93 tothe international border line at ornear Eureka, MT; and (3) from DE,NJ, CT; RI, MTA, VA, and the DC; thatportion of -PA on, south or east of aline commencing at the MD-PA Stateline and extending over interstateHwy 81 to its junction with InterstateHwy 78, then over Interstate Hwy 78to the PA-NJ State line; and points inMD On, south or east of InterstateHwy 81; and points in NY on or southof Interstate Hwy 84, to points in WYand points in MT on or west of U.S.Hwy 89. Restrictions: (1) All authoritysought herein is restricted to thetransportation of shipments whichoriginate at or are destined to pointsin NY, CT, MA, RI, NJ, PA, MD, DE,VA, DC, KY, NC, SC, TN, GA, AL, FL,MS, AR, LA, OK, TX, AZ, CA, andNM. (2) All-of the authority hereinshall expire on December 18, 1978,unless on or prior to that date theCommission shall renew the Certifi-cate issued to carrier in MC 107515(Sub-No. 799). The purpose of thisfiling is to eliminate the gateway ofthe State of TN (except Memphis andpoints in its commercial zone).

No. MC 115331 (Sub-No. E24) (cor-rection), filed May 16, 1974, publishedin the FEERAL REGISTER issue of May5, 1976, and partially republished, ascorrected, this issue. Applicant:TRUCK TRANSPORT INC., 230Saint Clair Avenue, East St. Louis, IL62201. Applicant's representative: E.Stephen Heisley, 666 Eleventh St.NW., Washington, D.C. 20001. (46) DryFertilizer, in bulk, from Cairo, IL, topoints in IA. The purpose of this filingis to eliminate the gateway of Selma,Mo.

NoTE.-The purpose of this partial repub-lication Is to correct the commodity descrip-tion. The remainder of this letter-notice re-mains as previously published.

No. MC 116014 (Sub-No. E21), filedJune- 15, 1975. Applicant: OLIVERTRUCKING COMPANY, INC., P.O.Box 53, Winchester, KY 40391. Appli-cant's representative: Louis J. Amato,P.O. Box E, Bowling Green, KY 42101.Lumber, from points in KY on andeast of a line beginning at the WV-KYState line, then along U.S. Hwy 23 tojunction KY Hwy 80, then along KYHwy 80 to junction U.S. Hwy 25W,

then along U.S. Hwy 25W to KY-TNState line, to points in WV on and eastof a line beginning at the OH-WVState line, then along Interstate Hwy77 to the WV-VA State line. The pur-pose of this filing is to eliminate thegateways of points in Powell County,KY, and points in KY on and east ofU.S. Hwy 31E.

No. MC 116014 (Sub-No. E23), filedJune 15, 1975. Applicant: OLIVERTRUCKING CO. INC., P.O. Box 53,Winchester, KY 40391. Applicant'srepresentative: Louis J, Amato, P.O.Box E, Bowling Green, KY 42101.Lumber, from those points in KY onand east of U.S. Hwy 31E to points inME, VT, NH, MA, CT, RI, NY, PA, NJ,DE, MD, OH, IN, MI, WI, IL, MN, IA,and those points In MO on and northof a line beginning at the IL-MO Stateline, and extending along U.S. Hwy 66to the MO-KS State line. The purposeof this filing Is to eliminate the gate-way of Pulaski County, KY, PowellCounty, KY between points In KY onand east of U.S. Hwy 31E, ClarkCounty, KY, and the plant site ofBluegrass Cooperage, Louisville, KY.

No. MC 116014 (Sub-No. E27), filedJune 15, 1975. Applicant: OLIVERTRUCKING CO., -INC., P.O. Box 53,Winchester, KY 40391. Applicant'srepresentative: Louis J. Amato, P.O.Box E, Bowling Green, KY 42101.Lumber, from points in KY on andeast of U.S. Hwy 31E, to points In TNon and west of a line beginning at theKY-TN State line, and extendingalong U.S. Hwy 27 to Junction TN Hwy52, then along TN Hwy 52 to junctionTN Hwy 42, then along TN Hwy 42 tojunction U.S. Hwy 70S, then alongU.S. Hwy 70S to junction TN Hwy 55,then along TN Hwy 55 to junctionU.S. Hwy 41A, then along U.S. Hwy41A to junction U.S. Hwy 64, thenalong U.S. Hwy 64 to junction TN Hwy97, then along TN Hwy 97 to the TN-AL State line. The purpose of this

'filing is to eliminate the gateways ofBarren County, KY, points in KY onand east of U.S. Hwy 31E, and PulaskiCounty, KY.

No. MC 117574 (Sub-No. E80), filedJune 29, 1975. Applicant: -DAILY EX-PRESS, INC., P.O. Box 39, Carlisle,PA 17013. Applicant's representative:E. S. Moore, *Jr. (same as above). Agri-cultural implements, agricultural ma-chinery, tractors (other than trucktractors), incidental machinery, at-tachments and parts when movingwith such implements, machinery ortractors, except commodities requiringspecial equipment, (1) between pointsin Haywood, Jackson, and Transylva-nia Counties, NC, on the one hand,and, on the other, all points in OR andWA, and points in: CA, on and northof a line commencing at a point in SanFrancisco on Interstate Hwy 80, thenalong Interstate Hwy 80 to the CA-NV


NOTICES

State line; ID, points on and west of aline commencing on U.S. Hwy 93 onthe ID-NV State line; then along U.S.Hwy 30 to its junction with ID Hwy55, then along ID Hwy 55 to its junc-tionwith U.S. Hwy 95, then along '.S.Hwy 95 to its junction with ID Hwy13, then along ID Hwy 13 to its junc-tion with U.S. Hwy 12, then along U.S.Hwy 12 to the ID-Mr State line; MT,points on and west of a line commenc-ing at the ID-MT State line on U.S.Hwy 12, then along U.S. Hwy 12 to Itsjunction with U.S. Hwy 91, then alongU.S. Hwy 91 to the Canadian-MTborder, NV, points on and west of aline commencing at the CA-NV Stateline on U.S. Hwy 40, then along U.S.Hwy 40 to its junction with U.S. Hwy93, then along U.S. Hwy 93 to the ID-NV State line.

(2) Between points in Guilford, Ran-dolph, and Rockingham Counties inNC, on the one hand, and, on theother, points in CA, ID, IN, MT, NV,ND, OR, SD, UT, WA, WY, and pointsin the following described States: AZ,points west of a line commencing atDouglas, AZ, on the AZ-Mexico borderalong U.S. Hwy 666 in a northerly di-Tection to its junction with U.S. Hwy70, then in a northwesterly directionalong U.S. Hwy 70 to its junction withU.S. Hwy 60, then along U.S. Hwy 60in a northeasterly direction to its junc-tion with State Hwy 61, then alongState Hwy 61 in a northerly directionto the AZ-NM State line; CO, pointswest of a line commencing at the CO-NM State line along Interstate Hwy 25in a northerly direction to its junctionwith U.S. Hwy 350, then along U.S.Hwy 350 in a northeasterly directionto its junction with U.S. Hwy 50 in aneasterly direction to its junction withU.S. Hwy 385, then along U.S. Hwy385 in a northerly direction to its junc-tion with State Hwy 96, then alongState Hwy 96 in an easterly directionto the CO-KS State line; Ia, pointsnorth of a line commencing at the NE-IA State line along State Hwy 2 -in aneasterly direction to its junction withU.S. Hwy 71, then along U.S. Hwy 71in a northerly direction to its junctionwith U.S. Hwy 34, then in an easterlydirection along U.S. Hwy 34 to itsjunction with U.S. Hwy 169, thenalong U.S. Hwy 169 in a northerly di-rection to its junction with InterstateHwy 80, then along Interstate Hwy 80in an easterly direction to its junctionwith State Hwy 330, then along StateHwy 330 in a northeasterly directionto its junction with U.S. Hwy 30, thenalong U.S. Hwy 30 in an easterly direc-tion to its junction with U.S. Hwy 63,then along U.S. Hwy 63 in a northerlydirection to its junction with U.S. Hwy20, then along U.S. Hwy 20 in an eas-terly direction to its junction withState Hwy 150, then along State Hwy150 in a northerly direction to its junc-tion with US. Hwy 18, then along U.S.

Hwy 18 in a northeasterly direction tothe IA-WI State line; KS, points northof a line commencing at the CO-KSState line along State Hwy 96, then Inan easterly direction along State Hwy96 to its Junction with State Hwy 27,then along State Hwy 27 to its Junc-tion with U.S. Hwy 40, then along U.S.Hwy 40 in an easterly direction to itsJunction with U.S. Hwy 83, then alongU.S. Hwy 83 in a northerly directionand northeasterly direction to its Junc-tion with State Hwy 9. then alongState Hwy 9 in an easterly direction toits Junction with U.S. Hwy 281, thenalong U.S. Hwy 281 in a northerly dl-

.xection to Its Junction with US. Hwy36, then along US. Hwy 36 in an eas-terly direction to its Junction with US.Hwy 73, then along U.S. Hwy 73 to theKS-NE State line; AlI, points north ofa line commencing at Lake MI atFrankfort, MI, along State Hwy 115,then in a southeasterly direction to ItsJunction with US. Hwy 10, then alongU.S. Hwy 10 in a southeasterly direc-tion to its junction with State Hwy 15,then along State Hwy 15 in a south-easterly direction to its Junction withState Hwy 46, then along State Hwy46 to. its termination at Lake Huron;NE, points west of a line commencingat the NE-KS State line along US.Hwy 73 to its Junction with the NE-IAState line; NM, points north of a linecommencing at State Hwy 53 In aneasterly direction to its Junction withState Hwy 32, then along State Hwy32 in a northerly direction to its junc-tion with U.S. Hwy 666, then alongU.S. Hwy 666 in a northerly directionto its Junction with US. Hwy 550, thenalong U.S. Hwy 550 in an easterly di-rection to Its junction with State Hwy17, then along State Hwy 17 In an eas--terly direction to Its Junction with U.S.Hwy 84, then along U.S. Hwy 84 In ansoutherly direction to Its Junction withU.S. Hwy 64, then along U.S. Hwy 64In a northeasterly direction to its Junc-tion with Interstate Hwy 25, thenalong Interstate Hwy 25 In a northerlydirection to the M-CO State line;OH, points east and north of, a linecommencing at Lake Erie near Cleve-land, OH along State Hwy 14, thenalong State Hwy 14 in a southeasterlydirection to its Junction with StateHwy 45, then along State Hwy 45 In asoutheasterly direction to Its Junctionwith U.S. Hwy 30, then along U.S.Hwy 30 in a southeasterly direction tothe OH-PA State line; WI, pointsnorth of a line commencing at the WI-IA State line along State Hwy 60 In aneasterly direction to Its Junction withU.S. Hwy 12. then in a northerly direc-tion along U.S. Hwy 12 to its junctionwith State Hwy 33, then along StateHwy 33 to its Junction with State Hwy22, then along State Hwy 22 In anortheasterly direction, then to itsJunction with U.S. Hwy 41, then alongU.S. Hwy 41 in a northeasterly direc-

tion to Its termination- at Lake MI.The purpose of this filing is to elimi-nate the gateway of Shadygrove, PA.

(3) Between points in the NC Coun-ties of Hoke, Roberson, and Scotland,on the one hand, and, on the other,points in CAT, COL, ID, MN, MT. NE,NV. ND, OR, SD, UT, WA, WI, andWY, and points in the following de-crIbed States; AZ, points on and north-west of a 14pe commencing at the A7-Mexico Border along AZ Hwy 85 in anortherly direction to its junctionwith US Hwy 80, then in an easterlydirection along U.S. Hwy 80 to itsJunction with U.S. Hwy 60, then in aneasterly direction along US. Hwy 60 toits Junction with AZ Hwy 61, then in anortheasterly direction along AZ Hwy61 to the AZ-NM State line; IL, pointson and north of a line commencing atthe IA-IL State line along ]L Hwy 17in an easterly direction to its junctionwith US. Hwy 51. then in a northerlydirection along US. Hwy 51 to itsJunction with U.S. Hwy 34, then in aneasterly directin along US. Hwy 34 tothe IL-Lake Michigan line; IA, pointson and northwest of a line commenc-ing at the MO-IA State line along IAHwy 15 in a northerly direction to itsJunction with IA Hwy 2, then in aneasterly direction along IA Hwy 2 toits Junction with IA Hwy 1, then in anortherly direction along IA Hwy 1 toits Junction with U .S. Hwy 34, then inan easterly direction along US. Hwy34 to the IA-IL State line; KS pointson and north of a line commencing atthe OK-KS State line along U.S. Hwy56 in a northeasterly direction to itsJunction with US. Hwy 83, then in anortherly direction along US. Hwy 83to Its junction with Interstate Hwy 70,then in an easterly direction along In-terstate Hwy 70 to its junction withU.S. Hwy 81, then In a northerly direc-tion along US. Hwy 81 to its junctionwith US. Hwy 36, then in an easterlydirection along U.S. Hwy 36 to itsJunction with U.S. Hwy 73, then in anortherly direction along U.S. Hwy 73to the KS-MO State line; MI, pointson and northeast of a line commenc-ing at St. Joseph, NI along U.S. Hwy31 in a southeasterly direction to itsJunction with U.S. Hwy 12, then in aneasterly direction along U.S. Hwy 12 toits Junction with U.S. Hwy 27, then ina southerly direction along U.S. Hwy27 to the OH-MI State line; MO,points on and north of a line com-mencing at the KS-MO State linealong US. Hwy 136 in an easterly di-rection to Its junction with MO Hwy15. then in a northerly direction alongMO Hwy 15 to the MO-IA State line;NM. points north and west of a linecommencing at the AZ-NM State linealong Interstate Hwy 40 in an easterlydirection to its Junction with US. Hwy85, then in a northerly direction alongU.S. Hwy 85 to its junction with U.S.Hwy 64. then in an easterly direction

FEDERAL REGISTER, VOL 43, NO. ,l--WEDESDAY, MARCH 1, 1978

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along U.S. Hwy 64 to the NM-OKState line; OH, points on and north ofa line commencing at the IN-OH Stateline along Interstate Hwy 80 in an eas-terly direction to its junction with OHHwy 66, then in a southerly diretionalong OH Hwy 66 to its junction withU.S. Hwy 6, then in an easterly direc-tion along U.S. Hwy 6 to its junctionwith OH Hwy 199, then in a southeast-erly direction along OH Hwy 199 to itsjunction with OH Hwy 18, then in aneasterly direction along OH Hwy 18 toits junction with U.S. Hwy 224, then inan easterly direction along U.S. Hwy224 to its junction with U.S. Hwy 250,then in a southeasterly dire6tion alongU.S. Hwy 250 to the OH-WV -ateline; WV, points on and north of a finecommencing at the OH-WV State linealong US. Hwy 250 in a southeasterlydirection to its junction with U.S. Hwy50, then in an easterly direction alongU.S. Hwy 50 to the WV-State line.

(4) Between points in the N.C. Coun-ties of Montgomery, Moore, and Rich-mond, on the one hand, and, on theother, points in CA, ID, MT, NE, NV,ND, OR, SD, UT, WA, WY, and pointsin the following described States; AZ,points on and north and west of a linecommencing at Yuma, AZ, along Inter-state Hwy 8, then in a northerly direc-tion to its junction with U.S. Hwy 80,then in a northerly direction alongU.S. Hwy 80 to to its junction withU.S. Hwy 89, then in a northerly direc-tion along U.S. Hwy 89 to its junctionwith U.S. Hwy 160, then in a north-easterly direction to the AZ-CO Stateline; CO, points north and west of aline commencing at the AZ-CO Stateline along U.S. Hwy 160, then in aneasterly direction to its junction withU.S..Hwy 85, then in a northerly direc-tion along U.S. Hwy 85 to its junctionwith U.S. Hwy 24, then in a northeast-erly direction along U.S. Hwy 24 to itsJunction with U.S. Hwy 385, then in anortherly direction along U.S. Hwy385 to its junction with U.S. Hwy 34 inan easterly direction to the CO-NEState line; NE, points north and westof a line commencing at the CO-NEState line along U.S. Hwy 34, then in anortheasterly direction to its junctionwith U.S. Hwy 83, then in a northdrlydirection along U.S. Hwy 83, to itsjunction with U.S. Hwy 30, then in aneasterly direction along U.S. Hwy 30 t.oits Junction with U.S. Hwy 77, then ina northerly direction to the NE-IAState line; IA, points north and westof a line commencing at the NE-IAState line along U.S. Hwy 75, then in anortheasterly direction to Its junctionwith State Hwy 60, then in a north-easterly direction along State Hwy 60to its junction with U.S. Hwy 18, thenin an easterly direction along U.S.Hwy 18 to its junction with State Hwy4, then in a northerly direction to theIA- MN State line; MN, points northand west of a line commencing at the

NOTICES

IA-MN State line along State Hwy 4,then in a northeasterly direction to itsjunction with State Hwy 60, then in anortheasterly direction along - StateHwy 60 to its junction with U.S. Hwy169, then in a northeasterly directionalong U.S. Hwy 169 to its junctionwith Interstate Hwy 35, then in anortheasterly direction to Duluth,MN; MI, only Sault Ste. Marie, MI;OH, points north of a line commenc-ing at Lake Erie near Ashtabula, OHalong State Hwy 11, then in a souther-ly direction, then to its junction withState Hwy 82, then to the OH-PAState line.

(5) Between points in the Counties,of Franklin, Vance and Warren in NC,on the one hand, and, on the other,points in AZ, CA, CO, DE, ID, IA, MI,MN, MT, NE, NV, ND, OR, SD, UT,WA, WI, and WY, and points in thefollowing described States: IL, pointsnorth of a line commencing at the IL-MO State line along U.S. Hwy 24, thenin a northeasterly direction to its junc-tion with Interstate Hwy 57, thenalong Interstate Hwy 57 in a northerlydirection to its junction with StateHwy 17, then along State Hwy 17 in anortheasterly direction to the IL-INState line; IN, points north of a linecommencing-at the IL-IN State linealong U.S. Hwy 6 in an easterly direc-tion to the IN-OH State line; KS,points west of a line commencing atthe OK-KS State line along InterstateHwy 35 in a northerly direction to Itsjunction with U.S. Hwy 50, then alongU.S. Hwy 50 in an easterly direction toits junction with Interstate Hwy 35,then along Interstate Hwy 35 in aneasterly direction to the KS-MO Stateline; MO, north of a line commencingat the MO-KS State line along U.S.Hwy 24, then in an easterly directionto the MO-IL State line; NM, pointswest and north of a line commencingat the NM-TX State line along U.S.Hwy 62 in a northerly direction to itsjunction with U.S. Hwy 285, thenalong U.S. Hwy 285 in a northerly di-rection to its junction with U.S. Hwy82, then along U.S. Hwy 82 in an eas-terly direction to Its junction withState Hwy 172, their along State Hwy172 in a northerly direction to its junc-tion with U.S. Hwy 380, then alongU.S. Hwy 380 in an easterly direction'to its junction with State Hwy 18,then along State Hwy 18 in a norther-ly direction to its junction with U.S.Hwy 70, then along U.S. Hwy 70 in anortheasterly direction to its junctionwith U.S. Hwy 60, then along U.S.Hwy 60 to the NM-TX State line; OH,points north of a line commencing atthe OH-IN State line along U.S. Hwy6 in an easterly direction to its junc-tion with U.S. Hwy 127, then alongU.S. Hwy 127 in a southerly directionto its junction with U.S. Hwy 24, thenalong U.S. Hwy 24 in an easterly direc-tion to its junction with State Hwy 15,

then along State Hwy 15 in a south-easterly direction to its Junction withU.S. Hwy 23, then along U.S. Hwy 23in a southeasterly direction to its Junc-tion with U.S. Hwy 30, then along U.S.Hwy 30 in an easterly direction to itsjunction with State Hwy 19, thenalong State Hwy 19 in a southeasterlydirection to its Junction with StateHwy 97, then along State Hwy 97 in asoutheasterly direction to its junctionwith State Hwy 39, then along StateHwy 39 In a southeasterly direction toits junction U.S. Hwy 250, then alongU.S. Hwy 250 in a southeasterly direc-tion to Its Junction with U.S. Hwy 22,then along U.S. Hwy 22 in an easterlydirection to the OH-WV State line:OK, points west of a line commencingat the OK-TX State line along U.S.Hwy 60 in an easterly direction to itsjunction with U.S. Hwy 64, then alongU.S. Hwy 64 in an easterly direction toits junction with Interstate Hwy 35,then along Interstate Hwy 35 in anortherly direction to the OK-KSState line; TX, points west of a linecommencing at Presidio, TX, on theTX-Mexico Border along U.S. Hwy 67in a northerly direction, then to, Itsjunction with U.S. Hwy 90, then alojigU.S. Hwy 90 in a northerly direction toIts junction with State Hwy 54, thenalong State Hwy 54 in a northerly di-rection to the TX-NM State line; WV,points north of a line commencing atthe WV-OH State line along U.S. Hwy22 then to the WV-PA State line. Thepurpose of this filing is to eliminatethe gateway of Waynesboro, PA. Re-strictions: (1) All authority grantedabove is restricted against the trans-portation of shipments betweenRacine, WI, Burlington and Betten-dorf, IA, Rockford and Rock Island,IL. (2) The authority granted hereinto the extent that it duplicates any au-thority heretofore granted to or nowheld by carrier shall not be construedas conferring more than one operatingright.

No: MC 118831 (Sub-No. E135), filedApril 19, 1976. Applicant: CENTRALTRANSPORT, INC., P.O. Box 5388,Uwharrie Road, High Point, NC 27263.Applicant's representative: E. StephenHeisley, Suite 805, 666 Eleventh StreetNW., Washington, DC 20001. LiquidZetrochemicals, in bulk, in tank vehi-cles from points in SC on, east, andsouth of a line beginning on U.S. Hwy21 at the NC-SC State line; thensouthward on U.S. Hwy 21 to SC Hwys72-121 to a junction with SC Hwy 901;then southward on SC Hwy 901 to ajunction with SC Hwy 9; then east-ward on SC Hwy 9 to a Junction withU.S. Hwy 21; then southward on U.S.Hwy 21 to a junction with SC Hwy 97;then southeastward on SC Hwy 97 to ajunction with U.S. Hwy 601; south-ward on U.S. Hwy 601 to Lugoff, SC;from Lugoff, SC, back to Camden, SC,on Hwy 601, then southward on U.S.


NOTICES

Hwy 251 to a junction with SC Hwy261; then southward on SC Hwy 261 toa junction with U.S. Hwy 15; thensouthward on U.S. Hwy 15 to a Junc-tion with U.S. Hwy 301; then north-ward on U.S. Hwy 301 to a junctionwith U.S. Hwy 521; then eastward onU.S. Hwy 521 to a junction with U.S.Hwy 52; then southward on U.S. Hwy52 to a junction with SC Hwy 45; theneastward on SC Hwy 45 to McClellan-ville, SC, and then due east to the At-lantic Ocean, to points in IL (exceptpoints in the East St. Louis commer-cial zone), IN, KY, MI, MO (exceptpoints in the St. Louis commercialzone), OH, TN, and WI. The purposeof this filing is to eliminate the gate-way of Charlotte, NC.

No. MC 118831 (Sub-No. E136), filedApril 19, 1976. Applicant: CENTRALTRANSPORT, INC., P.O. Box 5388,Uwharrie Road, High Point, NC 27263.Applicant's representative: E. StephenHeisley, Suite 805, 666 Eleventh StreetNW., Washington, DC 20001. Liquidpetrochemicals, in bulk, in tank vehi-cles from Greenville, SC, to points inMI and WI, and points in MO (exceptthe St. Louis, MO, commercial zone),IL (except the East St. Louis, IL, com-mercial zone), IN and OH, on,. north,and West of a line starting at MO Hwy5 on the AR-MO State line, thennorthward on MO Hwy 5 to the junc-tion with US. Hwy 60, then eastwardon U.S. Hwy 60 to the junction withU.S. Hwy 63, then northward on U.S.Hwy 63 to the junction with U.S. Hwy66, then northward on U.S. Hwy 66 toa junction with Interstate Hwy 44,then eastward-on Interstate Hwy 44 toa junction with Interstate Hwys 55-70,then eastward on Interstate Hwys 55-70 to a junction with Interstate Hwy57, then northward on Interstate Hwy57 to a junction with Interstate Hwy74, then eastward on Interstate Hwy74 to a junction with IL Hwy 1, thennorthward on IL Hwy 1 to a junctionwith U.S. Hwy 24, then eastward onU.S. Hwy 24 to a junction with U.S.Hwy 41, then northward on U.S. Hwy41 to a junction with IN Hwy 14. theneastward on IN Hwy 14 to a junctionwith IN Hwy 25, then northeastwardon IN Hwy 25 to a junction with U.S.Hwy 30, then eastward on U.S. Hwy 30to a junction with U.S. Hwy 127, thensouthward on U.S. Hwy 127 to a junc-tion with U.S. Hwy 33, then southeast-ward on U.S.-Hwy 33 to a junctionwith OH Hwy 29, then southeastwardon OH Hwy'29 to a junction with U.S.Hwy 68, ther southward on U.S. Hwy68 to a junction with OH Hwy 72, thensouth-ward on OH Hwy 72 to a junc-tion with U.S. Hwy 35, then southeast-ward on U.S. Hwy 35 to a junctionwith OH Hwy 93, then southeastwardon OH Hwy 93 to a junction with OHHwy 233, then southeastward on OHHwy 233 to a junction with OH Hwy141, then southward on OH 141 to a

junction with OH Hwy 378, thensouthward on OH Hwy 378 to Get-away, OH, then by unnumbered roadto Chesapeake, OH. The purpose ofthis filing is to eliminate the gatewayof Charlotte, NC.

No. MC 118831 (Sub-No. E137), filedApril 19, 1976. Applicant: CENTRALTRANSPORT, INC., P.O. Box 5388,Uwharrle Road, High Point, NC 27263.Applicant's representative: E. StephenHesley, Suite 805, 666 Eleventh StreetNW., Washington, DC 20001. Liquidpetrochemicals, in "bulk, In tank vehi-cles, from Beaufort, SC, to points In IL(except the East St. Louis commercialzone), IN, KY, MI, MO (except the St.Louis commercial zone), OH, WI, andpoints in TN on and north of a line be-ginning at U.S. Hwy 25 on the TN-NCborder, then westward on U.S. Hwy 25to a Junction with Interstate Hwy 40,then westward on Interstate Hwy 40to a junction with U.S. Hwy 70, thenwestward on U.S. Hwy 70 to a Junctionwith TN Hwy 104, then westward onTN Hwy 104 to a Junction with TNHwy 20, then westward on TN Hwy 20to the AR-TN border. The purpose ofthis filing s to eliminate the gatewayof Charlotte, NC.

No. MC 118831 (Sub-No. E141), filedApril 19, 1976. Applicant: CENTRALTRANSPORT, INC., P.O. Box 5388,Uwharrie Road, High Point, NC 27263.Applicant's representative: E. StephenHeisley, Suite 805, 666 Eleventh StreetNW., Washington, DC 20001. Liquidpetrochemicals, in bulk, in tank vehi-cles, from points in SC on and east ofa line beginning at SC Hwy 9 on theNC-SC border, then southward on SCHwy 9 to a Junction with SC Hwy 292,then southward on SC Hwy 292 to ajunction with SC Hwy 290, then south-ward on SC Hwy 290 to a junctionwith U.S. Hwy 221, then southward onU.S. Hwy 221 to a Junction with SCHwy 39, then southward on SC Hwy39 to a junction with SC Hwy 121,then southward on SC Hwy 121 to ajunction with SC Hwy 19, then south-eastward on SC Hwy 19 to a Junctionwith U.S. Hwy 78, then west on U.S.Hwy 78 to a Junction with SC Hwy125, then southeastward on SC Hwy125 to a junction with SC Hwy 301,then southwestward on SC Hwy 301 tothe SC-GA border, to points in MO(except the St. Louis commercialzone). The purpose of this filing Is toeliminate the gateway of Charlotte,NC.

No. MC 118831 (Sub-No. E142), filedApril 19, 1976. Applicant: CENTRALTRANSPORT, INC., P.O. Box 5388.Uwharrle Road. High Point, NC 27263.Applicant's representative: E. StephenHeisley, Suite 805, 666 Eleventh StreetNW., Washington, DC 20001. Liquidpetrochemicals (except anhydrous am-monia, fertilizer, and fertilizer materi-

als), in bulk, from points in NC on andeast of a line beginning at U.S. Hwy176 on the NC-SC border, then north-ward on U.S. Hwy 176 to a junctionwith NC Hwy 108. then eastward onNC Hwy 108 to a junction with U.S.Hwy 64, then northward on U.S. Hwy64 to a Junction with NC Hwy 18, thennorthward on NC Hwy 18 to a junc-tion with NC Hwy 268, then eastwardon NC Hwy 268 to a Junction with U.S.Hwy 601, then northward on U.S. Hwy601 to a junction with US. Hwy 52,then northward on U.S. Hwy 52 to theNC-SC border; to St. Louis, MO. andEast St, Louis, IM. The purpose of thisfiling is to eliminate the gateway ofCharlotte, NC, and Robertson County,TN.

No. MC 118831 (Sub-No. E143), filedApril 19, 1976. Applicant: CENTRALTRANSPORT, INC., P.O. Box 5388,Uwharrle Road, High Point, NC 27263.Applicant's representative: E. StephenHeisley, Suite 805, 666 Eleventh StreetNW.. Washington, DC 20001. Liquidpetrochemicals, in bulk (except anhy-'drous ammonia, fertilizer, and fertiliz-er materials) from points in NC on andeast of a line beginning on U.S. Hwy321 at the NC-SC border, then north-ward on U.S. Hwy 321 to a junctionwith NC Hwy 275, then southwestwardon NC Hwy 275 to a junction with NCHy 216, then northward on NC Hwy216 to a junction with NC Hwy 150,then northeastward on NC Hwy 150 toa junction with US. Hwy 21, thennorthward on U.S. Hwy 21 to a junc-tion with NC Hwy 268, then northeast-ward on NC Hwy 268 to a junctionwith U.S. Hwy 601, then northward onU.S. Hwy 601 to a junction with U.S.Hwy 52, then northward on US. Hwy52 to the NC-VA border; to AR. Thepurpose of this filing is to eliminatethe gateway of Charlotte, NC andRobertson County, TN.

No. MC 124174 (Sub-No. E9), filedJune 4, 1974. Applicant: MOMSENTRUCKING CO., P.O. Box 37490,Omaha, NE 68137. Applicant's repre-sentative: Karl E. Momsen (same asabove). Animal and poultrg feed andanimal and poultry feed ingredients,(1) between Anita, IA, and pointswithin 15. miles thereof, on the onehand, and,,on the other, those pointsin IA within 60 miles of Auburn. NE,on, south, and west of a line beginningat the IA-NE State line, at CouncilBluffs, IA, at junction of IA Hwy 92and U.S. Hwy 275, then along U.S.Hwy 275 to Junction U.S. Hwy 34, thenalong U.S. Hwy 34 to junction IA Hwy41, then along IA Hwy 41 to junctionIA Hwy 184, then along IA Hwy 184 toa point 4 miles east, then south on un-numbered highway to junction I.&Hwy 174, then along IA Hwy 174,south 12 miles on unnumbered high-way to junction U.S. Hwy 59, thenalong U.S. Hwy 59 to the IA-MO Stateline; (2) between points in IA within 15


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NOTICES

miles of Anita, IA, on the one hand,and, on the other, points in MO within60 miles of Auburn, NE, on and westof a line beginning at the IA-MOState line, and extending along U.S.Hwy 59 to junction U.S. Hwy 159 tothe MO River; (3) between Anita, IA,and 15 miles thereof, on the one hand,and, on the other, points in KS within60 miles of Auburn, NE, except thoseeast of a line beginning at the NE-KSState line and extending along KSHwy 7 to Iowa Point, KS, southweston unnumbered highway to Highland,KS, then south along S Hwy 120 tojunction KS Hwy 20, to junction U.S.Hwy 73 southeast to a point at or nearLancaster, KS, which is a point of thearc of the radius of 60 miles ofAuburn, NE; (4) from points in NE,KS, and MO within 60 miles ofAuburn, NE, to a point in IA within 50miles of Spencer,, I-A, except thosesouth of a point on IA Hwy 31 and theCherokee-Ida County line, then eastto U.S. Hwy 59 to junction U.S. Hwy20, to junction U.S. Hwy 71, north 4miles to unnumbered road, then eastthrough Nemaha and Knoke, IA, tothe junction of IA Hwy 4 and the 50mile radius of Spencer, IA. The pur-pose of this filing is to eliminate thegateway of Omaha, NE, and its com-mercial zone, including Council Bluffs,IA.

By the Commission.

H. G. HoMmE, Jr.,Acting Secretary.

FR Doc. 78-5393 Filed 2-28-78; 8:45 am]


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sunshine act meetingsThis section of the FEDERAL REGISTER contains noticel of meetings published under the "Government in the Sunsh'e Act" (Pub. L 94-409), 5 U.S.C.

2hie)(3). 'I552

CONTENTS

ItemsCivil Aeronautics Board .............. 1, 2Equal Employment

Opportunity Commission ......... 3Federal Communications

Commission ................ 4,5Federal Deposit Insurance

Corporation .............................. 6Federal Energy Regulatory

Commission ................ 7, 8, 9Federal Maritime Commission... 10Foreign Claims Settlement

Commission ............................... 11International Trade

Commission ................................ 12, 13National Council on

Educational Research ............ 14

[6320-01]I

M-101, Amdt. 4. Feb. 23, 19781

NOTICE OF DELETION OF ITEm FRom THEFEBRUARY, 23, 1978 AGENDA

CIVIL AERONAUTICS BOARD.

TIME AND DATE: 10 a.m., February23, 1978.PLACE: Room 1027, 1825 ConnecticutAvenue NW., Washington, D.C. 20428.SUBJECT:. 12. Dockets 30526, 31778,31849, 31934, 31939, 31940, 31961,31983 and 32106, Applications by TWAand Pan American to continue suspen-sions and exemptions involved in theirroute exchange agreement. (Memo No.7782, BPDA, BIA, OGC.)STATUS: Open.

PERSON TO CONTACT:Phyllis T. Kaylor, The Secretary,202-673-5068.

SUPPLEMENTARY INFORMATION:This item was deleted from the Febru-ary 23, 1978, agenda sothat the Boardcould give more consideration to theissues involved. Accordingly, the fol-lowing Members have voted thatagency business requires the deletionof item 12 from the February 23, 1978agenda and rescheduled for the March1 agenda and that no earlier an-nouncement of this deletion was possi-ble:Chairman. Alfred E. KahnVice Chairman. G. Joseph MinettiMember. Richard J. O'Mela

[S-446-78 Filed 2-27-78; 9:53 am]

[6320-01]

2

CIVIL AERONAUTICS BOARD.TIME AND DATE: 10 am., March 1,1978.PLACE: Room 1027. 1825 ConnecticutAvenue NW., Washington, D.C. 20428.SUBJECT.

1. Ratification of Items adopted bynotation.

2. Dockets 31317 et a]. Comprehen-sive liberalization of charter rules(OGC).

3. Docket 24094 and 31976, Miami-Los Angeles cases, Petitions for Recon-sideration (OGC).

4. Docket 31737, Amendment of Part300 on Separation of Functions (re-quest for instruction) (OGC).

5. Docket 29323, International AirService Co., Acquisition of Control ofAloha Airlines, Inc.-motion for inter-im approval of interlocking relation-ship (OGC).

6. Docket 30561, Complaint of MilesLaboratories, Inc. v. United Parcel Ser-vice Co.-motion for review of BOEdismissal of third-party complaint(Memo No. 7776, OGC).

7. Docket 28655, Seattle/Portland-Japan Service Investigation (requestfor instructions) (Memo No. 7758,7758-A, OGC).

8. Docket 29790, Dallas-Fort Worth-Western Mexico-Order of Discretion-ary Review (OGC).

9. Docket 29445, Las Vegas/Dallas/Fort Worth Nonstop Service Investiga-tion-Recommendations concerningpetitions for discretionary review(OGC).

10. Dockets 28213, 28955, 29373,29431, 29512, 29618, and 29984, Appli-cations of Yusen Air and Sea ServiceCo., Ltd. (Japan) d.b.a. Yusen Air andSea Service (U.S.A.), Inc. (Yusen),

Rinki Nippon Tourist Co. Ltd. (Japan)d.b.a. Kintetsu World Express, Inc.(U.S.A.) (Kintetsu); Warehousing Co.Ltd. (Japan) d.b.a. Nissin Internation-al Transport, U.S.A., Inc. (Nissin);Nippon Express Co., Ltd. (Japan)d.b.a. Nippon Express U.SA, Inc.(Nippon); Mitsui Air & Sea ServiceCo., Ltd. (Japan) d.b.a. (Mitsul); "K"Line Air. Service Ltd. (Japan) d.b.a."K" Line New York Inc. (USA.) (K-Line); and Nishi Nippon Railroad Co.,Ltd. (Japan) d.b.a. NNR Aircargo Ser-vice (U.S.A.) Inc. (Nishi) (Memo No.6758-A, OGC).

11. Docket 29880. Compensation ofparticipants in Board preceedings(Memo No. 6751-A, OGC).

12. Docket 29186, Memphis-TwinCities/Milwaukee Case (OGC, OEA).

13. Docket 21670, Frontier Airlines,Inc. Subsidy Mail Rates-Petitions fordiscretionary review (OGC).

14. Dockets 30526, 31778, 31849'31934, 31939. 31961, 31983, and 32106,Applications by TWA and Pan Ameri-can to continue suspensions and ex-emptions involved in their route ex-change agreement (Memo No. 7782,BPDA, BIA, OGC).

15. Dockets 31870, 31981, 31934,Order that scopes and establishedSubpart M procedures to govern theBaltimore/Washington Houston Low-Fare Route Case (Memo No. 7641-B,BPDA. BID).

16. Docket 30971, Western Air Lines,Inc. Motion for Hearing on Phoenix-Salt Lake City Competitive NonstopAuthority (Memo No. 7785, BPDA).

17. Docket 31967, Ozark's PetitionFor Show Cause, or, Alternatively,Motion For Hearing on St. Louis-Washington (Via Dulles Airport)(Memo No. 7784, BPDA).

18. Docket 30717, Closing the docketwhich solicited comments on the fare-effectiveness rule (Memo No. 6967-B,BPDA).

19. Fare increase and fare structurechanges proposed in 48 state-Alaskamarkets by various carriers, and intra-Alaska increase proposed by AlaskaAirline (BPDA).

20. Docket 30332, LATA Agreementproposing increase in North/CentralPacific cargo rates (BPDA).

21. Docket 31400, petition of RockyMountain Airways for reconsiderationof Board Order 77-12-130; Dockets31400 and 28342, Rocky Mountain Air-ways, motion to consolidate its amend-ment No. 2 to application in Docket28342 with Docket 31400, requestingauthority in some of the new marketswhich the Board put in issue in Order77-12-130; Dockets 31400 and 31270,Aspen Airways' motion for leave to filean unauthorized document, the peti-tion of Aspen for reconsideration ofBoard Order 77-12-130 (Memo No.4680-G, BIJ, OGC).STATUS: Open.

PERSON TO CONTACT.Phyllis T. Kaylor, The Secretary,202-673-5068.The Board will not be able to meet

on Thursday, March 2,1978 because ofthe Senate Appropriations hearingsscheduldd for that day. Because ofthese hearings, the Board must meet


i !

SUNSHINE ACT MEETINGS

on Wednesday, March 1, 1978. Inad-vertently, that information was notseen by the Secretary's office in timefor a meeting notice to issue with afull seven days' notice. So that the or-derly conduct of the Board's businesswill not be delayed, the followingMembers have voted that agency busi-ness requires that the Board meet onWednesday, March 1, 1978 with sixdays' notice and that no earlier an-nouncement of the meeting was possi-ble:

Chairman, Alfred E. KahnVice Chairman, G. Joseph MinettiMember, Lee R. WestMember, Richard J. O'MeliaMember, Elizabeth E. Bailey

[S-445-78 Filed 2-27-78; 9:53 am]

[6570-06]

3EQUAL EMPLOYMENT OPPORTU-NITY COMMISSION."FEDERAL REGISTER" CITATIONOF PREVIOUS ANNOUNCEMENT:43 FR 7518, S-412-78.PREVIOUSLY ANNOUNCED TIMEAND DATE OF MEETING: 9:30 a.m.(eastern time), Tuesday, February 28,1978.CHANGES IN THE MEETING:

Addition of the following items tothe portion open to the public:

5. Freedom of Information Act Appeal 77-12-FOIA-247 concerning a request for thenames and addresses of certain parties whofiled charges of discrimination.

6. Proposed two-month extension of fund-ing of contracts with three private bar orga-nizations and extension of time only of oneadditional contract to run through April 30,1978.

7. Proposal to hold public hearings to de-velop possible commission policy on work-scheduling as it relates to religious discrimi-nation.

A majority of the entire membershipof the Commission determined by re-corded vote that the buiness of theCommission required these changesand that no earlier announcement waspossible.

The vote was as follows:In favor of changes: Eleanor Holmes

Norton, Chair, Daniel E. Leach, Vice Chair,Ethel Bent Walsh, Commissioner.

Opposed: None.

CONTACT PERSON FOR MORE IN-FORMATION:

Marie D. Wilson, Executive Officer,Executive Secretariat, .at 202-634-6748.This notice issued February 24, 1978.

[S-450-78 Filed 2-27-78; 11:52 am]

4

FEDERALCOMMISSION.

COMMUNICATIONS

PREVIOUSLY ANNOUNCED TIMEAND DATE OF MEETING: 9:30 a.m.,Wednesday, February 22, 1978.PLACE: Room 856, 1919 M StreetNW., Washington, D.C.STATUS: Open Commission Meeting.CHANGES IN THE MEETING: Thefollowing agenda item should be de-leted:

Agenda, Item No., SubjectCommon Carrier-8-Western Union Tariff

FCC No. 254, revising rates and rate struc-ture for low-speed private line services.

The -following . Common Carrieritems will be considered on Thursday,February 23, 1978, starting at 9:30a.m., in Room 856, at 1919 M StreetNW., Washington, D.C. instead of inthe sequence indicated on the earliernotice.

Agenda, Item No., SubjectCommon Carrier-3-Declaratory ruling

concerning interconnection obligations ofAT&T.

Common Carrier-4-AT&T's petitions tosuspencj Southern Pacific Communica-tions Company's Transmittal No. 113, re-vising its Tariff FCC No. 6 to offer SprintOption V service.

Common Carrier-5- IS and WATSMarket Structure.

Items remaining to be consideredfrom the previous day will followthese Common Carrier items.

The prompt and orderly conduct ofCommission business requires thesechanges and no earlier announcementof the changes was possible.

CONTRACT PERSON FOR MOREINFORMATION:

Samuel M. Sharkey, FCC Public In-formation Office, telephone 202-632-7260.Issued: February 21, 1978; February

22, 1978.[8-447-78 Filed 2-27-78; 9:53 am]

[6712-01]

5

FEDERAL COMMUNICATIONSCOMMISSION.

PREVIOUSLY ANNOUNCED TIMEAND DATE: Follows 9:30 a.m., OpenCommission Meeting, Wednesday,February 22, 1978.PLACE: Room 856, 1919- M Street,NW., Washington, D.C.STATUS: Closed Commission meeting.

CHANGES IN THE MEETING: Thismeeting has been rescheduled forWednesday, March 1, 1978, starting at9:30 a.m., Room 856, at 1919 M Street,NW., Washington, D.C.MATTERS TO BE CONSIDERED:

Agenda, Item No., Subject

Complaints and Compliance-l-Results ofinvestigation into the operations ofWJPD-AM and FM, Ishpeming, Mich.

Complaints and Compliance-2-Fleld inves.tigations into the operations of KODE-TV, Joplin, Mo., FOAM-TV, Pittsburg,Kans. KTVJ, Joplin, Mo.

Hearing-l-Petition for special relief in theRhinelander, Wis. TV renewal proceeding,(Docket NO. 21266.

Hearing-2-Motons to certify record in theOrlando, Fla. television proceeding,(Docket Nos. 11083, 17339, 17341, 17342,17344.)

Hearing-3-Comments of seven applicantsfor a construction permit for an AM sta-tion In Los Angeles, Calif. (Docket Nos.15752, 15754, 15755, 15756, 15764, 15765and 15766.)

Hearing-4-Petition filed by Midwest St.Louis, Inc., for a declaratory ruling in acomparative hearing for the UHF TV sta-tion in St. Louis, Mo. (Docket Nos. 20820,20821.)

Hearing-5-Applications for review of afinal review board decision in the KTVO,Inc., Kirksville, Mo. television proceedings. (Docket No. 20100.)

Hearing-6-Petition for reconsiderationfiled by Talton Broadcasting Co., of aCommission decision in the renewal pro.ceeding of WHBB-AM, Selma, Ala,(Docket No. 20723,)

Hearing-7-Dralt decision in the Oil ShaleBroadcastng Co. (KWSR), Rifle, Colo. re-newal proceedings. (Docket No. 20231.)


Samuel M. Sharkey, FCC Public In-formation Office, telephone 202-632-7260.


[S-448-78 Filed 2-27-78; 9:53 am]

[6714-01]

6

NOTICE OF CHANGE IN SUBJECT MATTEROF AGENCY MEETING

FEDERAL DEPOSIT INSURANCECORPORATION.

On Friday, February 24, 1978, Chair-man George A. LeMaistre and Direc-tor John G. Heimann (Comptroller ofthe Currency) determined that Corpo.ration business required their additionof the following matter to the agendafor the closed Board of Directors'meeting scheduled for 2:00 p.m. onThursday, March 2, 1978:

Request from a State banking authoritythat the Corporation, pursuant to section10(b) of the Federal Deposit Insurance Act,assist in an examination of a national bankin connection with the bank's applicationfor a State charter.

The Board further determined, bythe same vote, that no earlier notice ofa change in the subject matter of themeeting was practicable; that theBoard's deliberations with respect tothe matter were exempt from theopen meeting requirements of the


8344


"Government in the Sunshine Act" bysubsections (c)(6), (c)(8), (c)(9)(AXii),and (c)(10) thereof; and that thepublic interest did not require consid-eration of the matter in a meetingopen to public observation.

Dated: February 24, 1978.FEDERAL DEPosrr INSURANCE

CORYORATION,ALAN R. MluER,

Executive Secretary.[S-449-78 Filed 2-27-78; 10:44 am]

[6740-02]

7

NOTICE OF MEETING

FEBRUARY 27, 1978.FEDERAL ENERGY REGULATORYCOMMISSION.TIE AND DATE: February 28, 1978.(Following regular Commission meet-ing.)

STATUS: Closed.

MATTERS TO BE CONSIDERED:Pending civil litigation.


Kenneth F. Plumb, Secretary, tele-phone 202-275-4166.

KENNETH F. PLUMB,Secretary.

[S-451-78 Filed 2-27-78; 1:17 pr]

[6740-02]

8

FEDERAL ENERGY REGULATORYCOMMISSION.

FEDERAL REGISTER CITATIONOF PREVIOUS ANNOUNCEMENT:43 FR 8057 Pub. February 27, 1978.PREVIOUSLY ANNOUNCED TIMEAND DATE OF MEETING: March 1.1978, 10:00 a.m.

CHANGE IN THE MEETING: Thefollowing item has been added:

Item No., Docket No., and CompanyCP-11(A)--CP77-363, Columbia Gas Trans-

mission Corp. and National Fuel GasSupply Corp.

CP-II(B)--CP77-38, Tennessee Gas PipelineCo., a division of Tenneco Inc., and Na-tional Fuel Gas Supply Corp.

CP-11(C)-CI76-432, Cabot Corp., CP76-19,Columbia Gas Transmission Corp., andthe Sylvania Corp., CP76-361, ColumbiaGas Transmission Corp.

CP-11(D)-CP77-477, Panhandle EasternPipe Line Co.

KENNET F. PLUMB,Secretary.

[S-452-78 Filed 2-27-78; 1:17 pm]

[6740-02]

9

FEDERAL ENERGY REGULATORYCOMMISSION."FEDERAL REGISTER" CITATIONOF PREVIOUS ANNOUNCEMENT.To be published February 27, 1978.PREVIOUSLY ANNOUNCED TIMEAND DATE OF MEETING: March 1,1978 10 a.m.CHANGE IN THE MEETING: Theregular Commission meeting sched-uled for Wednesday, March 1, 1978, at10 am. has been changed to Tuesday,February 28, 1978, at 10 am.

KENNETH F. PLUMB,Secretary.

ES-444-78 Filed 2-27-78; 9:53 am]

[6730-01]

10

FEDERAL MARITIME COMMIS-SION.TIME AND DATE: March 9, 1978, 10a.m.PLACE: Room 12126, 1100 L StreetNW., Washington, D.C. 20573.STATUS: Parts of the meeting will beopen to the public. The rest of themeeting will be closed to the public.MATTERS TO BE CONSIDERED:

Portions open to the public:1. Agreement Nos. 5680-25 and 6060-22:

Modifications of the Pacific.Stralts Confer-ence Agreement and the Pacific IndonesianConference Agreement, respectively torevise the self-policing provisions of theiragreements

2. Notice of Proposed Rulemaking Cap-italization of interest incurred during aperiod of construction

3. Docket No. 77-54: Allied Chemical Inter.national Corp. v. Atlantic Lines-Review ofinitial decision

4. Special Docket No. 523: Mitsui and Co.U.S.A. Inc. vs. Pacific Westbound Confer-ence-Revew of Initial decision

5. Special Docket No. 534: Cutler-HammerDenver v. Lykes Bros. Steamship Co., Inc.--Consideration of record

6. Special Docket No. 531: Mitsubishi In-ternational Corporation v. Far East Confer-ence and American President Lines, Ltd.-Consideration of record

7. Docket No. 71-29: Baton Rouge MarineContractors, Inc. v. Cargill, Inc-Consider-ation of request for oral argument

8. Docket No. 76-58: Reports by CommonCarriers by water in the Domestic OffshoreTrades-Consideration of record

Portions closed to the public:1. Docket No. 73-79: Household Goods For-

warders Association of America, Inc, et aLv. American Export Lines, Inc., Sea-LandService, Inc., United States. Line% Inc.-Consideration of petition of HouseholdGoods Forwarders Association of Americafor reconsideration of Commisson declsion

2. Docket No. 74-10: Freight ForwarderBids on Government Shipments at United

States Ports-Possible violations of theShipping Act. 1916, and General Order 4--_Consideration of petition of General Ser-vices AdminLitration for Declaratory Order

3. Docket No. 77-52: Far East Conference.Pacific Westbound Conference, Japan/Korea-Atlantlc and Gulf Freight Confer-ence and the Trans-Pacific Freight Confer-ence of Japan/Korea Assessment of In-cheon Arbitrary United States Import/Export Trades-Consideration of request ofHearing Counsel for protective order

CONTRACT PERSON FOR MOREINFORMATION:

Francis C. Hurney, Secretary, 202-523-5727.

ES-455-78 Filed 2-27-78; 3:39 pm]

[6770-01]11

FCSC MEErnwG NOTICE No. 18-77-NoTICE OF MEETINGS

FOREIGN CLAIMS SETTLEMENTCOMMISSION.

Announcement in regard to commis-sion meetings and hearings.

The Foreign Claims SettlementCommission, pursuant to its regula-tions (45 CFR Part 504), and the Gov-ernment in the Sunshine Act (5 U.S.C.552b), hereby gives notice in regard tothe scheduling of open meetings andoral hearings for the transaction ofroutine Commission business andother matters specified. as follows:

Date, Time nd Subject Matter

Wednesday. March 1. 1978, at 10:30 am.--Canceled.

Wednesday, March 8, 1978. at 10:30 a.m-Canceled.

Wednesday, March 15, 1978, at 10:30 a.m-Canceled.

Wednesday, March 22, 1978, at 10:30 aim.-Canceled.

Wednesday, March 29, 1978, at 10:30 a.=-Canceled.

Subject matter listed above, not dis-posed of at the scheduled meeting,may be carried over to the agenda ofthe following meeting.

All meetings are held at the ForeignClaims Settlement Commison, 111120th Street NW.. Washington, D.C.Requests for information, or advancenotices of intention to observe a meet-ing, may be directed to: Executive Di-rector, Foreign Claims SettlementCommL;sion. 1111 20th Street NW.,Washington. D.C. 20579, telephone202-653-6156.

Dated at Washington, D.C. on Feb-ruary 21, 1978.

FR xcms T. MAsTEmsox,Executive Director.

[S-456-78 Filed 2-27-78; 3:39 pml


8345


[7020-02]

12

INTERNATIONAL TRADE COM-MISSION.

TIME AND DATE: 9 a.m., P.s.t., and12 noon, P.s.t., Tuesday, March 7,1978.PLACE: Seattle Center, 305 HarrisionStreet, Seattle, Wash.; and Room 117,701, E. Street NW., Washington, D.C.20436.

STATUS: Open to the public.MATTERS TO BE CONSIDERED:

1. Agenda.2. Minutes.3. Ratifications.4. Petitions and complaints (if necessary).5. Work gloves (Inv. TA-406-1)-briefing

and vote on the question of market disrup-tion.

6. Any items left over from previousagenda.

CONTACT PERSONS FOR MOREINFORMATION:

Kenneth R. Mason, Secretary, 202-523-0161.

[S-454-78 Filed 2-27-78; 3:39 pm]

[7020-02]

13

INTERNATIONAL TRADE COM-MISSION.

TIME AND DATE: 9:30 a.m., Friday,March 10, 1978.

PLACE: Room 117, 701 E Street, NW.,Washington, D.C. 20436.

STATUS: Open to the public.

MATTERS TO BE CONSIDERED:

1. Work gloves (Inv. TA-406-1)--vote onremedy, if necessary..

2. Any items left over from previousagenda.


Kenneth R. Mason, Secretary, 202-523-0161.

[S-453-78 Filed 2-27-78; 3:39 pm]

[4110-29]14

NATIONAL COUNCIL ON EDUCA-TIONAL RESEARCH.

TIME AND DATE: March 17, 1978,9:30 a.m.-3:30 p.m.

PLACE: Room 823, National Instituteof Education, 1200 19th Street NW.,Washington, D.C.STATUS: Open to the public.

MATTERS TO BE CONSIDERED:

1. Swearing.in ceremony and remark.(9:30 a.m.-10 a.m.).

2. Approval of minutes January 12-13,1978 (10 a.m.-10:05 a.m.)

3. Director's general report (10:05 a.m.-10:45 a.m.).

4. Director's report on status of labs andcenters (10:45 a.m.-11:15 a.m.)

5. Director's report on procurement policyand practices (11:15 a.m.-12 noon).

6. Report of review and reports commit.tee: annual report (1 p.m.-2 p.m.)

7. Executive committee report: Issues forfuture consideration (chairman's report) (2p.m.-Adjournment).


Mrs. Ella L. Jones, AdministrativeCoordinator/NCER, telephone, 202-254-7900.

PETER H. GERBER,Chief, Policy and Administra-

tive Coordination, NationalCouncil on Educational Re-search.

(S-443-78 Filed 2-27-78: 9:53 am]


8346-8376

WEDNESDAY, MARCH 1, 19784 PART Ii

-w

=

=

DEPARTMENT OFCOMMERCE

National Oceanicand Atmospheric

Administration

STATE COASTALMANAGEMENT

PROGRAMSDevelopment and Approval -

II I

8378

[3510-08]Title 15-Commerce and Foreign Trade

CHAPTER IX-NATIONAL OCEANIC ANDATMOSPHERIC ADMINISTRATION (NOAA)

PART 923-COASTAL ZONE MANAGEMENTPROGRAA APPROVAL REGULATIONS

Intorim-fiaonl Regulations

AGENCY: National Oceanic and At-mospheric Administration (NOAA)Department of Commerce.

ACTION: Interim final rule.

SUMMARY: These interim final regu-lations revise and incorporate severalsets of existing regulations dealingwith development and approval ofState coastal management programs.These regulations reflect more accu-rately the interpretation of programapproval requirements being providedby the Office of Coastal Zone Manage-ment (OCZM).

EFFECTIVE DATE: April 1, 1978.FOR FURTHER INFORMATIONCONTACT:

Carol Sondheimer, State Programs,Office of Coastal Zone Management,Page Building 1, 3300 WhitehavenStreet NW., Washington, D.C. 20235,202-634-1672.

SUPPLEMENTARY INFORMATION:The National Oceanic and Atmospher-ic Administration (NOAA) is issuingthese revised regulations, pursuant tosections 305, 306, and 307 of the Coast-al Zone Management Act of 1972, asamended (16 U.S.C. 1451 et seq.), here-after referred to as the "Act," in inter-im final form to make effective assoon as possible regulations which re-flect more accurately the interpreta-tion of program approval require-ments being provided by the Office ofCoastal Zone Management (OCZM).Since a substantial number of coastalStates will seek program approvalwithin the next several months, it isappropriate to have in effect revisedregulations that provide greater detailand clarity as to the approval require-ments. NOAA also desires to respondto requests from several Federal agen-cies and other interested parties to dis-cuss further some of the major issuesaddressed in the regulations prior totheir publication in final form. NOAAbelieves that such an open process fol-lows the spirit of the Act. However,certain constraints exist with respectto agency informal rulemaking whichhave been emphasized in a recent Fed-eral court decision (Home Box Officev. FCC, D.C. Cir., March 25, 1977).While engaged in informal rulemak-ing, Federal agency officials are limit-ed with respect to communicationsthey may have with persons outsidethe agency on the merits of the rule-making. In order to accommodate the


above competing needs, NOAA has de-termined that the most appropriateprocedure wduld be this issuance in in-terim final form. Following this publi-cation, OCZMI will meet, during thecomment period provided below, withthe interested parties who have ex-pressed a desire to do so, and a writtensummary of each discussion will beplaced in the record. The public is in-vited to review the record during thisperiod and to subit written commentson such summaries. Following consid-eration of these discussions and anyother comments received during thecomment period, and making revisionswhere appropriate and legal, NOAAwill promulgate these regulations infinal form.

These regulations revise and super-sede the following sets of existing reg-ulations related to management pro-gram development and approval:

(1) Final Coastal Zone ManagementProgram Development Regulations (15CPR Part 920) published in the FEDER-AL REGISTER on April 29, 1977, dealingwith section 305 program develop-ment, preliminary approval, and grantapplications;

(2) Final Coastal Zone ManagementProgram Approval Regulations(15CFR Part 923) published in theFEDERAL REGISTER on January 9, 1975,dealing with section 306 program ap-proval requirements;

(3) Interim Coastal Zone Manage-ment Federal-State Consultation Reg-ulations (15 CFR Part 925) publishedin the FEDERAL REGISTER on February2, 1975, dealing with subsections307(b) and 307(h) of the Act whichhave to do with Federal consultation,review and approval procedures, andmediation during program develop-ment and preliminary approval;

(4) Final Coastal Zone ManagementProgram Approval RegulationsAmendment (15 CFR Part 923) pub-lished in the FEDERAL R GISTER on No-vember 2, 1976, dealing with subsec-tion 306(h) of the Act with respect toisland segmentation; and

(5) Proposed Coastal Zone Manage-ment Program Approval RegulationsAmendments (15 CFR Part 923) pub-lished in the FEDERAL REGISTER on De-cember 30, 1976, dealing with subsec-tions 306(c)(2)(B), 306(g) and 312 ofthe Act which have to do with a con-tinuing State-local consultation mech-anism, changes to approved manage-ment programs, and termination andwithdrawal of funding of approvedmanagement programs.

On August 29, 1977, NOAA pub-lished proposed revisions to the above-referenced regulations. Written com-ments were requested by October 28,1977. Comments were received from 14State reviewers, 10 Federal agencies,11 industrial groups, 2 environmentalgroups, and 3 miscellaneous reviewers.These comments have been consideredin preparing these regulations.

DIscUSSION OF MAIOR ISSUES ANDNOAA REsPONSE

Below is a discussion of the moremajor comments and changes to theseregulations. This is followed by a sec-tion-by-section discussion of othercomments received.

RErATioNsn or 15 CFR PART 920 TO15 CPR PART 923

A number of reviewers felt it wasconfusing and, in some cases, contra-dictory to indicate that the programdevelopment regulations (15 CFR Part920) were incorporated into the pro-gram approval regulations (15 CFRPart 923) and, yet, that where therewere differences, the Part 923 regula-tions control. In order to avoid anyconfusion, Subparts A-D of the Pro-gram Development (15 CFR Part 920)Regulations dealing with the require-ments of subsection 305(b) of the Actare superseded by the requirementscontained herein, especially SubpartA-E. The preliminary approval sec-tions-(Subpart E) of the Program De-velopment Regulations have been in-corporated herein as §§ 923.74-923.77with only minor changes. The grantapplication procedures (Subpart F) forsection 305 grants of the Program De-velopment Regulations have been in-corporated herein as part of SubpartJ, especially §§ 923.96 and 923.97, againwith only minor changes. Accordingly,reference no longer need be made tothe Program Development Regula-tions (15 CFR Part 920).

GENERAL REQUIREMENTS

A few reviewers felt that the regula-tions did not reflect adequately a basicthrust of the Act-the preservation ofunique, Vulnerable or valuable coastalresources. While NOAA feels thisthrust was reflected adequately in pre-vious regulations § 923.3 has been re-written to reaffirm this basic purposeof the Act.

ENERGY FACILrITY PLANNI4G

Several reviewers felt that the pro-posed energy facility planning require-ments did not reflect adequately therelationship between this planning ele-ment and national interest consider-ations required pursuant to subsection306(c)(8) of the Act. Section 923.14, es-pecially § 923.14(a)(4), has been revisedto reflect this relationship. A numberof other deletions and additions (from15 CFR 920.18) have been made in re-sponse to other comments on this sec-tion. These changes are discussedbelow in the section-by-section analy-sis of changes.

INLAND BOUNDARY

Comments were received suggestingthe approach taken to determiningthe inland boundary (in § 923.31)would yield an inland boundary larger

.FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, "MARCH 1, 1978


than that intended by Congress. Con-versely, a number of comments werereceived that the inland boundaryshould be larger than that providedfor in § 923.31 to ensure fulfillment ofthe Act's purposes. NOAA has re-viewed the Act and legislative history.and has determined that the presentinterpretation contained in § 923.31 isa correct and reasonable one. Accord-ingly, the basic requirements of§ 923.31 remain unchanged. Minorchanges to this section, for the pur-pose of further clarification, are dis-cussed in the section-by-section analy-sis that follows.

TREATmENT OF LOCAL POGRA S

A couple of reviewers objected to thepossibility provided in these regula-tions (in § 923.42) that State manage-ment programs could be approved inadvance of completion of local imple-mentation programs (where a Statewill use the control technique pro-vided by subsection 306(e)(1)(A) of theAct) on the basis that the State pro-gram would not provide sufficientspecificity to guide those affected bythe program as to permissible uses orgeographic areas of particular con-cern. A number of other reviewersmaintained that all local programs de-veloped and approved after NOAA ap-proval of a State's program alwaysmust be treated as amendments to theState's program.

The present regulations are a reson-able interpretation of -the require-ments of the Act and provide adequatesafeguards- (in § 923.3(a)(2) and923.42(c)(4)(iii)) to assure sufficentspecificity in any State program ap-proved by the Assistant Administrator(prior to local program completion) sothat those affected by the programwill know how and where they are af-fected.

With respect to how local programsare incorporated into a State's pro-gram, NOAA does not agree that localprograms would constitute amend-ments -in all cases. Whether or notsuch programs would constituteamendments (as opposed to refine-ments) would depend on whetherthese programs would result in sub-stantially different, significant envi-ronmental impacts or substantiallydifferent intergovernmental relation-ships from the State's approved man-agement program. This determinationis best left to a case-by-case determina-tion as provided for In § 923.80(c).However, to assure that there is ade-quate opportunity for the public, af-fected parties, and governmental enti-ties tb provide input to and review oflocal programs before they are ap-proved by the State (which appears tobe the major concern of those com-mentators who perfer to treat incor-poration of local programs as amend-ments), a new §923.42(c)(4)(ii) has

been added to assure such opportuni-ties are provided.

INCORPORATION OF Am AND WATER

QuALrY Rmqunun~m

Several commentators expressedcpncern with the comment in§923.44(c)(4) which informed Statesthat if they adopted, pursuant to theFederal Water Pollution Control Actand the Clean Air Act, pollution con-trol standards which are more strin-gent than those provided for in theseFederal Acts, those more stringentstandards must be incorporated in the"management program, and that incor-poration of these standards would be alegitimate factor in adequately consid-ering the national interest in siting offacilities whidh are more than local innature. The reviewers were concernedthat some States would use thesestricter pollution control requirementsto preclude or restrict unreasonablythe siting of energy facilities whichotherwise may be in the national in-terest. This section. has been re-phrased to remind States that if theyhave such stricter standards, thesemust be incorporated pursuant to sub-section 307(f) of the Act, but to clarifythat the Act does not mandate stricterstandards. The position of requiringStates which have adopted more strin-gent standards .to incorporate theminto their management programs Isbased on a careful reading of the legis-lative history of subsection 307(f) ofthe Act, and is supported by the Envi-ronmental Protection Agency. Becausethis section produced a large numberof" comments, and because there arecogent arguments on either side.NOAA particularly invites furthercomment on this section.

NATIONAL INTEREsT

Several reviewers objected to the na-tional interest being characterized Interms of "resources" as well as "facili-ties" and further objected to a balanc-ing of these various "national inter-ests." A number of these reviewers fur-ther suggested that subsection306(c)(8) required that facilities be ac-commodated in the coastal zone andthat assurance be provided that localregulations do not unreasonably ex-clude or restrict uses of regional bene-fit, especially when these uses involveenergy facilities.

NOAA 7esponse. NOAA maintainsthat the requirement of subsection306(c)(8) of the Act for adequate con-sideration of the national interest inthe planning for and siting of facilitiesthat are necessary to meet more thanlocal requirements must be met withinthe overall context of the Act. As de-scribed in the legislative history, thepurpose of "adequate consideration" Isto achieve the act's "spirit of equitablebalance between State and national in-terests." As such, consideration of fa-

cdites in which there may be a na-tional interest must be undertakenwithin the context of the Act's broad-er finding of a " national interest inthe *"" beneficial use, protection.and development of the coastal zone"(Section 302(a)). Subsection 302(g) ofthe Act gives "high priority" to the -protection of natural systems. Accord-ingly, while the primary focus of sub-section 306(c)(8) Is on the planning forand siting of facilities, adequate con-sideration of the national interest inthese facilities must be based on a bal-ancing of these interests with othernational and State interests relative tothe wise use, protection and other de-velopment of the coastal zone. As theDepartment of Energy noted in itscomments on the proposed regula-tions:

The Act presumes a balancing of the nation-al interest of energy self-sufficiency withState and local concerns Involving adverseeconomic social, or environmental Impacts.

'However, in recognition of commen-tators' concerns that proposed § 923.52does not clearly Identify the need tofocus on facilities in which there maybe a national interest, §923.52 hasbeen revised to clarify that the pur-pose of the requirements contained inthis section are to assure that facilitiesin which there is a national interestare considered in (1) the developmentof the State's management program,(2) the review and approval of aState's program by the Assistant Ad-ministrator, and (3) the Implementa--tion of the program. Other changeshave been made to this section to fur-ther emphasize the focus on facilities,including separation of the tables, onedealing with facilities, the other deal-ing with resources.

With respect to the comment thatassurance must be provided that localregulations do not unreasonably ex-clude or restrict uses of regional bene-fit when these uses involve energy fa-cilities, NOAA notes that these com-mentators have confused the require--ments of subsection 306(c)(8) of theAct with subsection 306(e)(2) of theAct. Subsection 306(cX8) calls for"adequate consideration" which is notsynonomous with assuring that provi-sion be made to assure the siting ofenergy facilities in which there is a na-tional interest. The requirement toassure local regulations do not unrea-sonably restrict or exclude uses of re-gional benefit is a separate and dis-tinct requirement pursuant to subsec-tion 306(eX2) of the Act, As §923.13 ofthese regulations points out, Statesshould define uses of regional benefitbased on (1) their effect on more thanone unit of local government, and (2)direct and significant impacts oncoastal waters. Effect may be consid-ered to be of a multi-county or intra-state nature. Accordingly, facilities inwhich there is a national interest need

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MUXCH 1, 1978

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not necessarily be defined as uses 6fregional benefit. However, as§ 923.13(d) points out, where States dodefine uses of regional benefit to in-clude facilities in which there is a na-tional interest, then assurance must beprovided that local regulations do notunreasonably restrict or exclude suchUses.

REvinw OF PERPORMANCE

A number of commentators objectedto proposed § 923.91 as being too vagueand not providing enough specificityas to the criteria and procedures to beused to review performance of Statesonce their management programs areapproved. NOAA agrees that moredetail on performance review afterprogram approval can and should- beprovided. Moreover, NOAA feels thatthese requirements can be better han-dled as separate regulations sincethese are required pursuant to section312 of the Act and are not require-ments of program approval pursuntto section 306 of the Act. Accordingly,§ 923.91 of the proposed regulationshas been dropped from these regula-tions and will be treated in separateregulations which NOAA will firstissue in proposed form to allow ade-quate opportunity for review and com-ment.

CHANGES TO APPROvED PROGRAMS

In response to a number of questionsand suggestions, proposed § 923.90(now § 923.80) has been rewritten andexpanded to provide examples of itemsthat would constitute changes to anapproved management program and toclarify differences in review and ap-proval procedures depending onwhether the change is an amendmentor a refinement. Proposed §§923.92and 923.93 (now §§923.81 and 923.82,respectively) also have been revised tofurther specify and clarify the proce-dures for amending or refining, respec-tively, the management program.

SECTXO-BY-SEcTIoN ANALYsIs

SUBPART A

(a) Section 923.1-Purpose Fourcommentators suggested that differ-ences between the 15 CFR Part 920,and 15 CFR Part 923 regulations beidentified and resolved.

NOAA response. See discussion undermajor changes of the relationship of15 CFR Part 920 to 15 CFR Part 923.

(b) Section 923.2-Definitions. (1)One commentator suggested the terms"direct and significant impacts," "spe-cial management," and "special man-agement areas" be defined.

NOAA response. NOAA feels theseterms are already sufficiently ex-plained in §§ 923.31(d) and 923.21 re-spectively, and need not be further de-fined in this section.

(2) One reviewer suggested that"shorelines" be defined as the coast-

lines of the several States as definedin the Submerged Lands Act.

NOAA response NOAA does not feelthis suggested definition is appropri-ate. There is no indication that Con-gress intended to interpret "shore-lines" synonymously with the term"coastline" as defined in the Sub-merged Lands Act. In fact, the legisla-tive history suggests that "shoreline"was used synonymously with "coastalzone" and that Congress' attentionwas to a coastal area, In which a vari-ety of competing uses took place, noton the "line" itself.

(3) One commentator suggested de-fining "water dependency."

NOAA response. NOAA does not feelthis necessary or appropriate as suchdefinition is better left to each Stateas it feels appropriate given the specif-ics of its management program.

(4) Three commentators suggestedthe addition of the Department ofEnergy and the deletion of componentagencies.

NOAA response. All references to theEnergy Research and DevelopmentAdministration, the Federal EnergyAdministration, and the FederalPower Commission, have been deletedand the Department of Energy hasbeen iubstituted.

(5) One reviewer suggested that"pollution abatement and control" beincluded in § 923.2(d) as one of thoseactivities which impact or affect aState's coastal zone.

NOAA response. This suggestion hasbeen accepted.

(6) One reviewer suggested the addi-tion of the Department of State to thelist of relevant agencies.

NOAA response. NOAA has not ac-cepted this suggestion. For one, It didnot come from the Department ofState. For another, "relevant agen-cies" are those that need to be in-volved extensively in program develop-ment and program review. It is notnormally essential for the Departmentof State to be involved extensively insuch activities. Moreover, §923.2(e)makes provision for the inclusion ofthe Department of State when suchinvolvement is warranted.

(7) One commentator suggested aclarification in the definition of theterm "Secretary" to note that, for me-diation purposes, the authority re-mains in the Office of the Secretary.

NOAA response. Section 923.2(b) hasbeen so clarified.

(8) One commentator found theterms "fields" of interest, "types ofuses," "uses subject to the manage-ment program." "areas of particularconcern," "facilities in which theremay be a national interest," and "re-sources in which there may be a na-tional interest" which are cited in§§ 923.2, 923.10, 923.12, 923.14, 923.21,923.50, and 923.52 respectively to berepetitive and overlapping.

NOAA response. NOAA disagreesthat these terms are repetitive andoverlapping. They refer to differentaspects of program management andare explained sufficiently in each ofthe respective sections cited above.

(c) Section 923.3-General Require-ments. (1) Two reviewers suggestedthat NOAA should require that aState's program provide for manage-ment of all uses with direct and sig-nificant impacts on coastal waters, notjust those a State has determinedmake its coastal zone a unique, vulner-able or valuable area. One of these re-viewers also felt the regulationsshould specifically affirm in this sec-tion that management programs mustprovide a planning process for manag-ing the Impacts of energy facilities andfor the consideration of the nationalInterest. The other reviewer felt thatNOAA should provide that manage-ment programs assure the preserva-tion and protection of coastal re-sources consistent with the basic con-servation purposes of the Act.

NOAA response. With respect to thefirst comment, § 923.3 (especially (g))has been revised to assure that man-agement is provided for those useswith direct and significant Impacts oncoastal waters.

With respect to the second com-ment, NOAA does not feel It necessaryto mention specifically in this sectionthe requirements to provide an energyfacility planning process and to consid-er adequately the national interest asthese already are provided for in§9 923.14 and 923.52 respectively.

With respect to the third comment,NOAA has addressed this issue In thediscussion of general requiremehtsunder major changes, above.

(2) One commentator suggested theword "comprehensive" be deleted fromthe description of the managementprogram in paragraph (a)(1) as thiscommentator found no statutory basisfor the requirement.

NOAA response. The word "compre-hensive" appears as part of the defini-tion of the term "management pro-gram" in section 304(11) of the Act.Accordingly, no change has been madeto this paragraph.

(3) Five reviewers objected to para-graph (b) suggesting that the wordingis open to controversy and Is not inconformance with the Act.

NOAA response. NOAA agrees thatthe wording of this paragraph may beconfusing and is not essential for pro-gram approval purposes. Accordingly,paragraph (b) of the proposed regula-tions has been deleted.

(4) One reviewer suggested that therequirement for three broad classes ofpolicies' in proposed paragraph (e)(now paragraph (f)) be deleted, as thisreviewer felt inclusion of this require-ment would lead to a program ofbroad land use controls. Two commen-


8380


tators suggested this paragraph be re-vised to indicate that State manage-ment programs should address endan-gered species and marine mammalsand their needs. One of these com-mentators also suggested adding OCSdevelopment and mineral extractionto the examples of development poli-cies to be addressed in managementprograms. Another reviewer objectedto the implication of this paragraphthat the priority given different issueswould be left to the States. This re-viewer felt the regulations should indi--cate clearly- that the scope and prior-ity given these issues would be evalu-ated by the Assistant Administratorprior to granting approval.

NOAA response With respect to thefirst comment, NOAA believes thethree broad classes of policies (havingto do with resources, coastal develop-ment and governmental processes) arenecessary to address the findings andpolicies of sections 302 and 303 of theAct. However, NOAA has not stipulat-ed the specific policies that are appro-priate within these broad groupings asthis is the responsibility of the State,working in consultation with interest-ed and affected parties, including thegeneral public. In further response tothe reviewer's concern that inclusionof these three groupings would lead tobroad land use controls, it should benoted that the examples provided, ofappropriate subjects for policies, arecoastal specific. To further emphasizethe coastal aspect of these manage-ment policies, group (2) in paragraph(f) has been retitled "Coastal Develop-ment Policies."

With respect to the second com-ment, paragraph (f)(1) has been re-vised to include "* * * areas contain-ing fishery, spawning, and harvestinggrounds, other wildlife habitats in-cluding those of endangered species* * *" as examples of resources that

should be considered under the Re-source Policies grouping.

With respect to the third comment,paragraph (f)(2) has been revised toinclude "* * * mineral extraction, on-shore OCS-related development * * *"as examples of development thatshould be considered under the Coast-al Development Policies grouping.

With respect to the fourth comment,paragraph (g) provides that "the As-sistant Administrator will review man-agement programs to ensure thatmajor coastal resources * * * are ad-dressed by appropriate policies in theprogram."

(5) Three commentators urged thatproposed paragraph (f) (now para-graphs (i)-(k)) be expanded to providemore guidance to States on meetingthe mandates of Presidential Execu-tive Orders on wetlands protection andfloodplain management. -A fourth com-mentator concurred, advocating thatbarrier islands also be included. Two

reviewers suggested a revision to clari-fy that the Wetlands Order does notapply to the issuance by Federal agen-cies of permits, licenses or allocationsto private parties for activities Involv-ing wetlands on non-Federal property.Two other commentators requestedfurther discussion of means to incor-porate and coordinate the mandates ofthe Orders with the national flood in-surance program.

NOAA response. With respect to thefirst comment requesting further guid-ance on complying with the ExecutiveOrders, OCZM is working with the En-vironmental Protection Agency, theCorps of Engineers, and the FederalInsurance Administration to developthe guidance requested. OCZM hopesto have this guidance ready for inclu-sion in these regulations at the time oftheir issuance as Final Regulations.Alternatively, OCZM will issue guid-ance papers separate from these regu-lations if the necessary information isnot available at the time of issuance ofFinal Regulaltions.

With respect to the second com-ment. NOAA has not added a refer-ence to barrier islands in these para-graphs because barrier islands are notaddressed in the two Executive Orderscited In paragraphs (D-(k). However,NOAA has added reference to barrierislands in paragraph (f)(1) as an exam-ple of a resource to be consideredunder the Resource Policies grouping.

With respect to the third comment,NOAA does not feel It necessary toclarify in these paragraphs Federal re-sponsibilities under the Wetlands Ex-ecutive Order as this section is ad-dressed to State, not Federal. responsi-bilities pursuant to these Orders.

With respect to the fourth, comment,NOAA has not provided additional dis-cussion of means to coordinate withthe national flood Insurance programbecause of uncertainty at the time ofissuance of these regulations ofwhether or how the national flood in-surance program will be altered by theExecutive Order on floodplain man-agement. NOAA is working with theFederal Insurance Administration todevelop an interagency agreementwhich will address interrelationshipsbetween the coastal zone managementand the flood insurance programs.

SUBPART B

- (a) Three reviewers objected thatSubpart B did not treat uses subject tomanagement as comprehensively assubsections 306(c)(8) and 306(e)(2) ofthe Act require, and suggested thatthis Subpart should expressly requireState programs to provide for the re-quirements of those two subsections ofthe Act.

NOAA response. NOAA does not feelthe objection of the reviewers is validas the requirements of the two subsec-.tions of the Act 'cited above already

are addressed in individual sections ofthe regulations (§§ 923.52, 923.13, and923.43 respectively).

(b) Section 923.1O-GeneraL Onecommentator suggested this sectionshould be revised to address coastalwaters, consistent with the languageof the Act, and not the broader refer-ence to coastal resources, as proposedsection 923.10 provides.

NOAA response. Section 923.10 hasbeen revised as per the suggestionabove.

(c) Section 923.11-Uses Subject toManagement. (1) One commentatorsuggested the addition of the words"within the coastal zone which have adirect and significant impact on coast-al waters."

NOAA response. NOAA finds thesewords unnecessary and redundant andtherefore has made no change.

(2) One reviewer felt that the sug-gested analyses in paragraphs (b) and(c) would involve studies so complexthat it would be years before theywere completed. In contrast, three re-viewers felt that these analyses arecritical to program development andtherefore should be made a require-ment for program approval.

ZJOAA response. While NOAA agreesthat the inventories suggested In para-graph (b) and the analyses suggestedIn paragraph (c) are useful to programdevelopment, NOAA does not feelthese inventories and analyses are thesole means of arriving at a determina-tion of uses that should be subject tothe management program. Moreover,NOAA cannot find any statutory lan-guage that would require such inven-tories and analyses be made manda-tory. In response to the first reviewer'sconcern, the fact that these studiesare recommended, and not required,should alleviate some of the concernabout the amount of time required tocomplete these studies. Moreover, itshould be noted that many of theStates involved in the coastal programdevelopment process, in fact, havebeen able to complete the recommend-ed inventories and analyses in lessthan the nunerous years anticipatedby the first reviewer.

(3) Two commentators suggestedthat the analyses recommended inparagraph (c) should be limited to im-pacts on coastal waters and not oncoastal resources as the proposed para-graph provides. Another reviewer sug-gested that this paragraph be clarifiedto apply to uses with direct and sig-nifleant impacts on coastal watersbefore they can be subject to the man-agement program. A third commenta-tor suggested that the list of uses beconsidered a minimum.

NOAA response. With respect to thefirst comment, paragraph (c) has beenrevised as per the suggestion above.

With respect to the second com-ment, paragraph (c) already explicitly


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refers to direct and significant Impacts -judged in terms of their relationshipas a basis for determining whether, to the findings and national policies ofuses are to be subject to the manage- sections 302 and 303 of the Act.ment program. (d) Section 923.12-Use Permissibil-

With respect to the third comment, ity. (1) Two commentators suggestedNOAA has not adopted the suggestion that this section did not meet the re-that- the list of uses be considered a quirements of the Act in only requir-minimum requirement as this para- ing development of "policies and pro-graph Is a recommendation and not a cedures" for definition of permissiblerequirement. As another commentator uses while subsection 305(b)(2) of thenoted, in connection with another sec- Act mandates a more detailed defini-tion, "at a minimum" implies a re- tion. In contrast, another reviewerquirement and therefore is inappropri- suggested that the requirement forate in a commentary. policies and procedures by which uses

(4) A number of commentators sug- subject to the management programgested the following changes to the will be allowed, conditioned, modifiedlist of uses contained in paragraph (c): or prohibited be deleted.

(I) Deletion of the words "such as NOAA response. The first two com-subdivisions, high-rise apartments or mentators have misunderstood howhotels, trailer parks, second-home de- the regulations address the require-velopments, shopping centers, and as- ments of subsection 305(b)(2). Sectionsociated transportation corridors" 923.11(a)(1) requires an identificationfrom paragraph (c)(1); of permissible uses (i.e, uses that will

(ii) Deletion of the words "manufac- be subject to the management pro-turing complexes, industrial parks" gram) which is a partial fulfillment ofand addition of the word "marine" to the requirement of subsection"mineral and sand extraction oper" 305(b)(2). Language has been added toations" in paragraph (c)(2); § 923.11(a)(1) to indicate clearly this Is

(iii) Deletion of the words "schools, in fulfillment of the requirement ofhospitals, government buildings" from that subsection of the Act. Once usesparagraph (c)(4); and have been determined to be subject to

(iv) Addition of transportation facili- the management program, pursuant toties as a separate paragraph. § 923.11, then States must determine

NOAA response. With respect to the how they will be managed (i.e., al-first two comments, NOAA has not lowed, conditioned, modified, or pro-made the suggested changes because hibited) which is the requirement ofthe items listed are illustrative and § 923.12. NOAA feels, in response toclarify the sorts of analyses that may the suggestion that this requirementbe appropriate for program develop- be deleted, that it is reasonable in viewment. of the language of the Act and logical

With respect to the third suggestion, in terms of what a management pro-NOAA has deleted the recommended gram should contain.words because it feels, on reconsider- (2) One reviewer felt that the dis-ation, that those examples do not pro- tinction between "uses subject to thevide further understanding of the rec- management plan" and "permissibleommended analyses. uses with direct and significant im-

With respect to the fourth comment, pacts" had been blurred and that thisNOAA has added a new paragraph (5) distinction needed to be maintainedcovering transportation facilities. Be- since only uses with direct and signifi-cause of this addition, "associated cant impacts need to be managed bytransportation facilities" has been de- regulatory techniques.leted from paragraph (c)(1). NOAA response. While NOAA agrees

(5) Two commentators suggested, in that not all uses subject to the man-connection with paragraph (d), the As- agement program need be managed bysistant Administrator should consider regulation, NOAA does not agree withwhether major coastal Issues, raised the commentator's analysis. NOAA be-by the public or governmental entities, lieves that uses that must be subjectare addressed through existing pro- to the management program are thosegrams as well as through the State's with direct and significant impacts oncoastal management program. An- coastal waters. The issue of the appro-other reviewer suggested the term priate management technique (e.g.,"major coastal-related issues" in para- regulation versus technical or finan-graph (d) should be clarified. cial assistance) is a separate issue, and

NOAA response. With respect to the is dealt with in § 923.3(h).first comment, no change has been (3) With respect to paragraph (c),made because the regulations already the following recommendations wereallow for and anticipate the incorpora- made:tion of existing programs as elements (i) One reviewer felt the suggestedof a State's management program. analyses were overly complicated. An-

With respect to the second com- other reviewer objected to consider-ment, NOAA has added language to ation of capability/suitability analysesparagraph (d) to indicate that the sig- for all uses, maintaining that the earli-nificance of issues raised by the public , er program approval regulations re-or governmental entities will be quired these analyses only for geo-

graphic areas of particular concern. Incontrast, two reviewers felt these anal-yses should be required;

(i) The considerations suggested inparagraphs "(2)-(5) all should Includereference to future, as well as present,considerations;

(Ill) The words "resource types" and"coastal resources" in paragraphs (1)and (2) respectively should be replacedwith the words "resources of thecoastal waters"; o-

(iv) The word "coastal" should be re-placed with the word "water" in theterm "coastal dependency" In para-graph (5);

(v) Paragraphs (2) and (4) should bedeleted; and

(vi) A paragraph (6) should be addedrequiring the policies and procedures(called for in paragraph (a)) to bebased on other existing regulatoryprograms.

NOAA response. With respect to thefirst set of comments, NOAA does notagree that these analyses are overlycomplicated. Moreover, It should benoted that these analyses are recom-mended but not required. In responseto the comments that these analysesshould be required, NOAA does not be-lieve that these are the sole means fordetermining use permissibility. More-over, NOAA does not find any statu-tory language that would require suchanalyses be made mandatory.

In response to the second comment,it is not necessary to add reference tofuture considerations as such a refer-ence already can be found in para-graph (1). Moreover paragraphs (1)-(5)should not be considered mutually ex-clusive but complementary.

In response to the third comment,NOAA does not feel it necessary or ap-propriate to substitute "resources ofthe coastal waters" for "resourcetypes" or "coastal resources."

With respect to the fourth comment,NOAA has made the recommendedchange.

With respect to the fifth comment,NOAA does not feel it necessary or ap-propriate to delete paragraphs (2) and(4) as these are suggestions, not re-quirements, that are worth calling tothe attention of the States.

In response to the sixth comment,NOAA does not feel it necessary toadd the additional paragraph as theregulations already allow for relianceon other existing regulatory programsas elements of a State's managementprogram.

(4) With respect to paragraph (d),the following comments were received:

(i) The factors listed in paragraphs(1)-(5) are inadequate, and full rangeof environmental Impacts must be con-sidered, including cumulative andlong-range impacts;

(ii) Economic development andenergy self-sufficiency should be in.cluded as factors for consideration;and


8382


(iii) The listed considerations haveno statutory basis, are not necessaryto control impacts, and many of theseconsiderations are properly addressedby non-regulatory aspects of the pro-gram.

NOAA response In response to thefirst comment, NOAA feels that thefactors listed do cover a full range ofenvironmental impacts. Moreover, itshould be noted that the consider-ations listed in paragraphs Wi)-(5) areillustrative and non-inclusive. Accord-ingly, States are in no way precludedfrom considering cumulative and long-range impacts.

In response to the second comment,reference to energy has been added toparagraph (5).

In response to the third comment,NOAA again notes that these analysesare recommended and not mandated.They' are offered as suggestions toStates as to how to meet the require-ments of paragraph (a).

(5) One reviewer suggested thatsince the Act mandates definition ofpermissible uses, if performance stan-dards are to be relied upon (as pro-vided for in paragraph (d)), the regula-tions should specify that uses can beprohibited through the application ofthese standards. Another reviewer feltthe performance standard approachheld good potential and that the dis-cussion should be expanded.

NOAA response. The requirement todefine uses subject to the managementprogram is contained in § 923.11, not inthis section. As noted in an earlier re-sponse, § 923.11 has been so clarified.Performance standards represent onemeans of specifying how uses are to bemanaged once they are determined tobe subject to the program. The term"management" is not and need not,for purposes of the Act, be synony-mous with "prohibition." Accordingly,

--xOAA does not agree with the com-inent above that performance stan-dards must be capable of prohibitinguses in all cases.

With respect to the second com-ment, NOAA has nothing further toadd at this time regarding the use ofperformance standards to meet the re-quirements of this section and thushas not expanded the discussion.

(6) One reviewer suggested thatparagraph,(d)(2) would be more effec-tive if reworded to read: "Historic, cul-tural, and aesthetic resources wherecoastal development is likely to affectthese resources." This same revieweralso suggested rephrasing paragraph(d)(4) to include consideration of allspecies that depend upon the coastalzone during at least a portion of theirlife cycle.

NOAA response NOAA has adoptedthe suggested rewording of paragraph(d)(2) but has not made the recom- -mended change to paragraph (d)(4) asthe existing language appears broadenough.

(7) One commentator suggested thatthe comment in paragraph (e) regard-ing performance standards was unnec-essarily limiting. If a State canmanage activities with direct and sig-nificant impacts via performance stan-dards, the requirement to specify di-rectly such uses seems inappropriate.

NOAA response. Again this commen-tator appears to have confused the re-quirements of § 923.11 with § 923.12. Asnoted earlier, they are separate re-quirements. Accordingly, paragraph(e) remains unchanged.

(e) Section 923.13-Uses of RegionalBenefit (1) A number of reviewers incommenting on other sections of theseregulations made comments that aremost appropriately addressed in a dis-cussion of this section. These commen-tators suggested that uses of regionalbenefit must be defined, at a mini-mum, to include, energy facilities inwhich there is a national interest.

NOAA response First, It should benoted that the present regulations-provide that States may define uses ofregional benefit in terms of facilities(including energy facilities) in whichthere may be a national interest, Italso should be noted that this is notmandatory but one of several optionsavailable to States in meeting the re-quirements of subsection 306(e)(2) ofthe Act. Moreover, NOAA finds noth-ing in the language of the Act or thelegislative history to imply that sub-section 306(c)(8) (which deals withconsideration of facilities in whichthere is a national interest) and sub-section 306(e)(2) (which deals withuses of regional benefit) were intendedto be linked together and made to rep-resent a single requirement. Nor doesNOAA find any language to precludesuch linkage if States desire to do so.Accordingly, NOAA has left It up toStates whether or not to define uses ofregional benefit in terms of facilitiesin which there is a national interest.

(2) One reviewer suggested that therequirements of paragraph (a) beeliminated.

NOAA response. NOAA believes therequirements of paragraph (a) repre-sent a reasonable interpretation of thestatutory, requirement of subsection306(e)(2) of the Act. As a statutory re-quirement, it cannot be eliminatedexcept by Congress.

(3) One commentator suggested thatthis section falls to Implement thestatutory requirement of subsection306(e)(2) of the Act by not providingadequate guidance as to what usesmight be of regional benefit and howStates might assure that local regula-tions do not unreasonably restrictthese uses. Relatedly another reviewerfelt there was not a clear definition ofuses of regional benefit while twoother reviewers suggested the list ofoptions be expanded or, at least, bemade non-inclusive. Another reviewer

suggested that the three sources sug-gested in paragraph c) for identifyinguses of regional benefit must all beused to determine such uses. Still an-other reviewer suggested that thesecond and third alternative, whereuses of regional benefit may be de-fined as facilities In which there arenational Interests, should be justifiedas the latter is a separate and distinctrequirement of the Act. The same re-viewer suggested that the first optioncould be broadened by referencingplanning programs of other Federalagencies.

NOAA response. In response to thefirst three comments, what was para-graph c) and is now paragraph (d) hasbeen expanded to provide furtherguidance as to how States mightdefine uses of regional benefit. Section923.43 already contains guidance as tohow States might assure local regula-tions do not unreasonably restrictthese uses. A clarification to thiseffect has been added to new para-graph c) of this section.

With respect to the fourth comment,NOAA does not agree that all sourceslisted in paragraph (d) must be used todetermine uses-of regional benefit.NOAA feels that suggesting alterna-tive approaches to States is a reason-able and logical response to meetingthe requirement of the Act.

With respect to the fifth comment,as noted in an earlier response, noth-ing In the statute appears to prohibitdefining uses of regional benefit interms of facilities in which there is anational interest. NOAA does agreewith this commentator that consider-ation of facilities, in which there is anational interest, is a separate require-ment. Accordingly, the approach is op-tional and not mandatory.

Finally, NOAA has followed the rec-ommendation of this reviewer and has.made reference to other Federal pro-grams In paragraph (d).

(4) One reviewer felt there was a cer-tain amount of confusion between thissection and related § 923.43 and object-ed to the physical separation of theserequirements in the regulations.

NOAA response Paragraph Cc) hasbeen added to clarify the relationshipbetween this section and § 923.43.

(f) Section 923.14-Energy FacilityPlanning Proces. (1) Several review-ers made comments on this sectionwhich are more appropriate to the dis-cusslon of national interest in § 923.52.Accordingly, those comments are ana-lyzed in the discussions under § 923.52.

(2) Two reviewers suggested that theregulations specifically commit Statesto the siting of energy facilitiesthrough this process. Conversely, onecommentator suggested it be notedthat subsection 305(b)(8) of the Actwas not enacted to encourage thesiting of energy facilities In the coastalzone. Relatedly, five reviewers object-


8383


ed to the reference in paragraph (c)that encourages States to employ sitespecific control techniques, and notedthat Congress specifically forbade in-tercession in specific siting decisions.

NOAA response. NOAA agrees with.the commentators who note that Con-gress did not intend to encourage theunnecessary siting of energy facilitiesin the coastal zone. To wit, the Com-

,mittee Report on the 1976 Amend-ments to the Act noted: "The Commit-tee in no way wishes to accelerate thelocation of energy facilities in thecoasts: on the contrary, it feels a dis-proportionate share are there now."However, that same report states that"'State coastal zone programs should,therefore, specifically address howmajor energy facilities are to be locat-ed in the coastal zone if such siting isnecessary. Second, the program shallInclude methods of handling the an-ticipated impacts of such facilities."(Emphasis added.) Accordingly, in re-sponse to the first comments, NOAAdoes not read the legislative history tomandate energy facility siting butrather to encourage articulation of lo-cational and environmental consider-ations that will influence energy sitingdecisions. Similarly, in response to thesecond comment, NOAA does not be-lieve that the present requirementsencourage location of energy facilitiesin the coastal zone but rather requirea clear articulation of how energy fa-cility impacts are to be managed. Fi-nally, in response to the last set ofcomments, NOAA agrees that Con-gress did not intend for intercessioninto specific siting decisions; to wit,the Committee statement that it"wishes to emphasize * * * that thisnew paragraph (8) requires a State todevelop, and maintain a planning pro-cess, but does not imply intercessionin specific siting decisions." (Empha-sis added.) Again, NOAA does not feelthe initial comments in paragraph (c)to which reviewers object are directedtowards intercession in specific sitingdecisions but rather articulation ofsite considerations that need to betaken into account in order to manageimpacts from energy facilities.

(3) A number of reviewers suggestedchanges or additions to the require-ments of paragraph (a) as follows:

(i) Include all energy*related activi-ties in this planning process;

(ii) Add a requirement for trade-offs-of energy-related natural resourcesagainst other non-energy resources;

(Ili) Identify potential demands andimpacts on coastal resources from.energy facilities;, (iv) Expand paragraph (a)(2) to take;into account alternative sites and toinclude consideration of ecological,cultural, historic, and aesthetic values

-as well as needs for enocomic develop-.ment;* (v) Include members of the energyfacility community in the consultationrequirement of paragraph (a)(4); and

(vi) Include specific mention of Fed-eral and State fish and wildlife agen-cies for consultation purposes in para-graph (a)(4).

NOAA response. In response to thefirst comment, NOAA believes Statesneed include in the planning processonly those energy facilities defined insection 304(5) of the Act. However,NOAA also believes it reasonable toallow States, at their option, to in-clude additional energy-related activi-ties, as suggested by the first commen-tator, in this planning process. Para-graph (d), which Is incorporated from15 CFR 920.18(b)(2), reflects this dis-cussion above.

In response to the second comment,NOAA is not sure how the recom-mended addition would contribute to aState's ability to manage impacts fromenergy facilities. In any case, NOAAdoes not believe that such trade-offsas suggested by the commentator areprecluded by the present regulations.

With regard to the third comment,NOAA is not sure that identificationof potential demands on coastal re-sources is a necessary requirement todevelop a process for managing im-pacts from energy facilities. Again,NOAA does -not believe the presentregulations preclude the analyses sug-gested by the commentator.

With respect to the fourth comment,NOAA believes paragraph (f) (which isincorporated from 15 CFR 920.18) ad-dresses the concerns of the commenta-tor.

Finally, with respect to the fifth andsixth comments, paragraph (a)(4) hasbeen revised to reference "interestedand affected public and private par-ties" which includes the energy facili-ty community and the fish and wild-life agencies referred to by the com-mentators.

(4) Two commentators objected tosuggestions in the commentary inparagraph (c) which they believe dis-plays a bias against nuclear and otherenergy facilities. Relatedly, two otherreviewers suggested the commentaryaccomplished little In advising Stateson planning for energy facilities andsuggested paragraph (c) be deleted.Another reviewer felt reference to 15CFR 920.18(b)(1) would eliminate theneed for most of paragraph (c).

NOAA response NOAA wishes to goon record as not being biased againstnuclear or other energy facilities.NOAA is committed to the mandate ofthe Act to provide for the develop-ment as well as the preservation of thecoastal zone and its resources. NOAAbelieves this mandate is achievedthrough a balancing of developmentaland preservation considerations. it isthis concept of balancing that was in-tended to be conveyed in the commen-tary of paragraph (c) and certainly notany bias against energy facilities. How-ever, NOAA has deleted most of para-

graph (c) in response to the second setof commentators and to remove anyhint of bias because it feels the addi-tion of the 15 CFR 920.18 commentary(as paragraphs (d)-(l)), is more specificthan that provided in proposed para-graph (c) and therefore more helpfulto States in developing the requiredplanning process.

(5) One reviewer suggested the regu-lations clarify that prior to identifica-tion of sites, States should consultwith appropriate Federal and localgovernment officials and the public.

NOAA response. As Indicated in anearlier response, site identification,per se, is not a required part of theplanning process. In any case, though,revised paragraph (a)(4) provides for"an identification of how interestedand affected public and private partiesmay be involved in the planning pro-cess."

(6) One reviewer suggested thatparagraph (c) clarify that areas of par-ticular concern designated for ecologi-cal reasons be reserved exclusively forthe purposes for which designated.This commentator also suggested thatthe list of other facilities or resourcesof national interest be expanded to in-clude historic and cultural resourcesand that the "should" in the second tolast sentence of paragraph (c) bechanged to "must."

NOAA response. While the sectionsof paragraph (c) to which thesechanges are addressed have been de-leted, NOAA, In any case, believes thatthe first suggestion Is implied in para-graph (a)(2) and the remaining por-tions of paragraph (c),

(7) One commentator suggested in-cluding a variance provision thatwould allow the waiver of process re-quirements in cases where nationalenergy needs outweigh resource andconservation concerns.

NOAA response. NOAA does not be-lieve this is a necessary requirementfor fulfilling the Congressional intentin adding this planning process, Nei-ther does NOAA feel that adoption ofsuch a provision by States is precludedby the present regulations.

(8) One commentator suggested theaddition of a discussion indicating howthis planning element and that pro-vided In the Coastal Energy ImpactProgram (CEIP) (15 CFR Part 931)might be coordinated.

NOAA iesponse. Paragraph (g),adapted from 15 CFR 920.18(b)(6), ad-dresses some of these interrelation-ships.

(9) Finally, one reviewer objected tothe statement in proposed paragraph(e), now paragraph (j), that State pro.grams could be approved without com-pletion of this element and suggestedthat the first sentence of this para-graph be deleted.

NOAA response. In reviewing the leg-islative history and the language of


8384


subsection 305(b)(9) of the Act, NOAAis convinced that Congress intendedthat State programs approved prior toOctober 1, 1978, have until that dateto meet the three new planning ele-ments. Accordingly, the recommendedchange has not been made to para-graph Wi).

SUBPART C

(a) Section 923.20-General Onecommentator suggested that this sec-tion should indicate that the philos-ophy that should govern the designa-tion of special management areas isthe protection and preservation ofvaluable coastal ecosystems. Converse-ly, one reviewer felt that the regula-tions evidenced a preservation bias inuses permitted in designated areas ofparticular concern. A third commenta-tor suggested that States be requiredto address the problem of dredge spoildisposal areas for maintenance dredg-ing.

NOAA response. With respect to thefirst two comments, while NOAAagrees that the majority of specialmanagement areas probably will bedesignated for conservation reasons,neither the Act nor these regulationspreclude the designation of areas forspecial management because of theirdevelopment potentials or values.

With respect to the third comment,NOAA can find no authority in theAct or legislative history to mandatethe designation of dredge spoil areas.However, NOAA has added these forconsideration for designation to para-graph (d) of § 923.21.

(b) Section 923.21-Areas of Particu-13r Concern. (1) Three revidwers ob-jected to generic designations of areasof particular concern, suggesting thatall designations must be site-specific.Relatedly three reviewers suggestedthe reference to mapping in paragraph(d)(4) should be a requirement for spe-cific (rather than generalized) map-ping. By contrast one reviewer object-ed to what it interpreted to be a re-quirement for site-specific designa-tions.

NOAA- response. NOAA believes thepresent regulation allowing for genericas wel as site-specific designations tobe reasonable and not precluded bythe Act or legislative history. An ex-ample is provided to demonstrate thepotential utility and reasonableness ofallowing generic designations: AssumeState "X" determines that all its saltmarshes are of particular concern fortheir natural values. State "X" deter-mines that the most appropriatemeans .of providing special manage-ment for its salt marshes is to institutea separate permit requirement for anydevelopment activity proposed incoastal marshlands. In this case, theareas affected, the nature of the con-cern, and the nature of the specialmanagement can be reasonably under-

stood by all affected parties throughgeneric designation in the manage-ment program.

(2) One reviewer suggested that theregulations clarify that designation ofareas of particular concern may in-volve no additional enforceable au-thorities but rather increased coordi-nation, techical assistance, or publicexpenditures. Another reviewer sug-gested that the requirement of para-graph (a)(3) for enforceable policiesand authorities be deleted. In contrast.one commentator suggested thatStates be required to demonstrate howenforceable policies and authoritieswill solve concerns in a manner consis-tent with the conservation purposes ofthe Act.

NOAA response. In response to allthree comments. NOAA has revisedparagraph (a)(3) to require a demon-stration of "how the management pro-gram addresses and resolves the con-cerns for which areas are designated."This has the effect of recognizing thefirst commentator's suggestion that ef-fective management may involve otherthan regulation, of deleting the refer-ence to enforceable policies as suggest-ed by the second commentator, and ofincluding the third commentator's rec-ommendation that the managementtechniques should be appropriate tothe reason for designation. It shouldbe noted, however, that this revisiondoes not require a demonstration ofconsistency with the conservation pur-poses of the Act, as the third commen-tator suggested, since NOAA believesdesignations may be for other pur-poses which would be equally consis-tent with the Act. Finally. NOAA be-lieves the first commentator's recom-mendation is equally applicable toother areas of particular concern dis-cussed in § 923.23. and accordingly hasadded language along the lines sug-gested to § 923.20 which includes gen-eral information applicable to all thesections of this Subpart.

(3) Three reviewers objected to thelanguage of paragraph (c) as potential-ly permitting differential degrees ofcomprehensive controls for areas ofparticular concern. Two of these com-mentators suggested that the com-ment subverted the purposes of theAct and should be deleted. The thirdsuggested the conditions under whichthese differences might be appropriateshould be specified.

NOAA response. NOAA believes thatthe concept contained in paragraph c)is a valid one and is not a subversionof the Act. It seems logical to concludethat in a State with a comprehensiveregulatory system throughout Itscoastal zone (e.g., a permit require-ment for any development in thecoastal zone) that relatively less im-portance need be attached to designa-tion of areas of particular concern ifthe permit system already addresses

any concerns there may be about par-ticular areas. Even in such situations,however, those States still would haveto meet the requirements of para-graph (a). In these situations It maybe anticipated that designations maybe for non-regulatory purposes as forexample, increased maintenance, in-teragency coordination, or technicalassistance.

(4) One reviewer suggested an addi-tion to paragraph (c) that requires_States to develop management proce-dures for areas of particular concernno later than the completion of thefirst program management grant(awarded pursuant to section 306 ofthe Act).

NOAA responsm NOAA finds no stat-utory requirement that would man-date, where further management pro-cedures are to be developed after pro-gram approval that these must be de-veloped within a year. While NOAAmay, in fact, on occasion Impose sucha requirement as a grant award condi-.tion. a time limit of one year may notbe appropriate and sufficient in allcases, and therefore, has not beenmade a condition of these regulations.

(5) One reviewer suggested it wouldbe helpful to reference § 923.23 whichdiscusses other areas of particular con-cern.

NOAA response. Reference to§ 923.23 has been added to paragraphCc) as well as clarification that para-graph (a) of § 923.21 is required of allState programs while § 923.23 is op-tional.

(6) One reviewer objected to theterm "review" resources in paragraphCd). noting that an "inventory" Is thelanguage contained in subsection305(b)(3) of the Act.NOAA response. The word "inven-

tory" has been substituted for"review" in paragrah dxl).(7) A number of changes were sug-

gested to the categories listed for con-sideration in paragraph (dXl):(i) Addition of areas of saltwater in-

truslon and potable ground water re-sources;

(iI) Clarification of the term "phys-Ical feature" in sentence (i);(ill) Addition of "areas in or deter-

mined to be eligible for- the NationalRegister of Historic Places" to sen-tence (I);

(1v) Addition of "endangered spe-cies" to sentence (ii);(v) Addition of "hydrologic" to sen-

tence (v); and(vi) Addition of "estuaries" to sen-

tence (viii), and changing "aquifer re-charge areas" to "aquifers and theirrecharge areas."

NOAA response. NOAA has incorpo-rated all the changes recommendedabove.

(8) One reviewer objected to sen-tences (1v), v), and (vi) of paragraph

d) as providing too much latitude to


8385


designate areas which may not havedirect and significant impacts oncoastal waters.

NOAA response. NOAA has reviewedthe examples provided in the citedsentences, and is satisfied they repre-sent examples of areas which couldhave direct and significant impacts oncoastal waters, and therefore are ap-propriate for consideration for desig-nation as areas of particular concern.

(9) Several reviewers commented onparagraph (d)(5). Two suggested Fed-eral consultation should be required indesignating areas of particular con-cern, not just encouraged. One review-er recommended that the State Histor-ic Preservation Officer be specificallymentioned, and expressed concernover how NOAA intends to complywith the National Historic Preserva-tion Act (NHPA). Another reviewerobjected to the lack of local input andsuggested rewording of this section.

NOAA response. In response to thefirst and last comments, NOAA be-lieves the present regulations are ap-propriate. There is nothing in the Actto specifically mandate Federal orlocal government input into designa-tion of areas of particular concern.

With respect to the second com-ment, NOAA does not feel it necessaryor appropriate in this section to singleout the Historic Preservation Officer.Additional, NOAA does not feel it ap-propriate to address how it complieswith the NHPA in a section addressingState responsibilities. In any case,NOAA fulfills the mandates of theNHPA during Its review of State pro-grams, after they are submitted to theAssistant Administrator for approval,by sending copies of a State's programto the Advisory Council on HistoricPreservation for their review and com-ment, and by reviewing a State's pro-gram for any site-specific aspects ofthe program that could affect proper-ties on the National Register of His-toric Places.

(c) Section 923.22-Priority of Uses.(1) Five reviewers objected that thedevelopment of priority of use guide-lines is required only for areas of par-ticular concern. These commentatorssuggested the Act mandates priority ofuse guidelines for the entire coastalzone. Conversely, one commentatorsuggested the section be rewritten toclarify that it is not a requirement ofthe Act that priority guidelines be es-tablished for all areas of particularconcern.

NOAA response. The language ofsubsection 305(b)(5) of the Act-"broad guidelines on priorities of usesin particular areas" (emphasisadded)-is ambiguous and has causedconfusion as to its meaning. A reviewof the legislative history does not pro-vide any further guidance. According-ly, NOAA has determined that auseful, as well as reasonable, interpre-

tation of the words "in particularareas" is to deem them to be synony-mous with "areas of particular con-cern." Moreover, NOAA believes thatthe general concern of the reviewers-that there be a clear articulation ofState policy preferences for certain re-sources, uses, or areas in the coastalzone-is covered adequately by the re-quirements of § 923.3 for clearly statedand specific coastal zone policies.

In response to the second comment,NOAA does believe it is a requirementof the Act that priority use guidelinesbe established for all areas of particu-lar concern designated pursuant to§ 923.21.

(2) One reviewer noted that designa-tion of lowest priority uses should bepart of the requirements of paragraph*(a), and not just discussed as part ofthe paragraph (d) commentary.

NOAA response. NOAA regrets that,through oversight, this requirementwas omitted from paragraph (a). Thisomission has been corrected in theseregulations.

(3) One commentator objected thatthe regulations encourage guidelinesthat may be so restrictive as to be con-fiscatory. -

NOAA response NOAA disagrees inthat the guidelines are advisory.

(4) One reviewer objected that para-graph f) weakens thi§ section bymaking the guidelines advisory andrecommended the comment be de-leted.

NOAA response. The word "guide:lines" implies that they may be adviso-ry and, in fact, need not have the forceof law. Accordingly, NOAA has re-tained paragraph (f).

(d) Section 923.23-Other Areas ofParticular Concern. (1) One reviewerobjected to the approval of manage-ment programs without establishmentof necessary management techniquesand suggested that the regulations re-quire area of particular concern desig-nations (including identification of au-thorities to manage these areas) to bein place prior to program approval.

NOAA response. NOAA believes thisreviewer has misinterpreted the re-quirement. Section 923.21 requires thedesignation of a number of areas ofparticular concern, including idetitifi-cation of how the appropriate manage-ment is to be accomplished prior toprogram approval. What § 923.23 doesis provide States with an optionaltechnique for further indicating areasthat are known to require additionalmanagement although the exactnature of appropriate management re-quires some additional time to deter-mine or to effectuate. This optionseems reasonable in light of the dy-namic nature of coastal managementrequirements, and the realities of thetime and effort required in some casesto develop appropriate managementtechniques.

(2) One reviewer suggested more ex-planation as to what are "areas thatare known to require additional or spe-cial management" referred to In para-graph (a)(1).

NOAA response. NOAA believes it isup to the States to make this determi-nation. Accordingly, no change hasbeen made to this paragraph.

(3) One commentator suggested thatproposed paragraphs (a)(2), and§ 923.24(c) be combined for greaterclarity.

NOAA response. NOAA has acceptedthis recommendation. Section923.24(c) is now included as part of§ 923.23(a)(2).

(4) One reviewer suggested thatNOAA require the establishment of aprocess whereby States can continueto designate areas of particular con-cern after program approval to ad-dress changing management needs.

NOAA response. While NOAA be-lieves establishment of such a processis both beneficial and desirable tomeet changing management needs,NOAA does not find any statutorybasis to mandate the establishment ofsuch a process. It is for this reasonthat § 923.23 is recommended but notrequired.

(e) Section 923.24-Areas for Preser-vation and Restoration, (1) Three re-viewers suggested that the relation-ship between areas of particular con-cern and areas for preservation or res-toration be clarified and that accept-able criteria for designation of areasfor preservation or restoration belisted. Conversely, one reviewer sug-gested that the requirement for Statesto describe criteria by which areas forpreservation or restoration can be des-ignated be eliminated.

NOAA response NOAA believes therelationship between areas of particu-lar concern and areas for preservationor restoration is already clear. Areasof particular concern are areas desig-nated at the time of management ap-proval. The areas for preservation/res-toration requirement is for establish-ment of a process (i.e., criteria andprocedures by which designations canbe made) prior to program approval,NOAA believes it is up to the States todetermine appropriate criteria andprocedures, and, therefore, has notprovided criteria In these regulations.NOAA does feel that requiring Statesto describe these criteria and proce-dures is not an unreasonable require-ment and, in fact, fulfills the requirements of subsection 306(c)(9) of theAct which states that "the manage-ment program makes provisions forprocedures whereby specific areas maybe designated * ' (Emphasisadded).

(2) One commentator suggested thatthe regulations require that areas forpreservation or restoration designatedfor environmental, aesthetic, historic


8386


or cultural purposes cannot be subjectto uses or modifications which detractfrom the purposes for which' they aredesignated.

NOAA response. Such additional lan-guage is not necessary. It is assumedthat protection of the resources men-tioned above would be included as partof the designation.(f) Section 923.25--Shorefront Access

and Protection Planning. (1) One re-viewer suggested that "preservation"in the title of this section be changedto "protection" to comport with thelanguage of the Act.

NOAA response. This was an over-sight on NOAA's part. The suggestedword change has been made.

(2) One-reviewer requested clarifica-tion of whether the planning require-ments of this section, and § 923.26,apply only to ocean frontage or toother shorelines such as along wet-lands and coastal rivers.

ROAA response. While States havethe option of including other shorelineareas in the planning requirements,the minimum requirement is to ad-dress areas along ocean frontage and,in the case of the Great Lakes States,along the Great Lakes.

(3) One reviewer suggested that,while the 1976 Amendments to the Actcalled for a planning process, theintent was that States implement theplans. Therefore, the regulationsshould be restructured to requireStates to initiate action programs.

NOAA response. Paragraphs (a) (3)and (5) already accomplish this veryintent.

(4) With respect to the requirementsin paragraph (a), the following sugges-tions were received:(i) Require States to indicate present

laws concerning access;(ii) Require States to demonstrate

the enforceability of policies in lightof the conservation purposes of theAct; and

(iii) Delete the term. "and/or" anduse one or the other word.

NOAA response With respect to thefirst comment, sentence (a)(5) hasbeen revised to include an identifica-tion of legal authorities.

With respect to the second com-ment, sentence (a)(3) has been revisedto include the word "enforceable."

With respect to the third comment,the words "and/or" have been deletedand the words "and" or "or" havebeen substituted as appropriate.

(5) One commentator requested aclarification of what kinds of "otherpublic coastal areas" 'cited in para-graph (b)(1) should be included.

NOAA, response. Comment (c)(5),which was incorporated from 15 CF920.17, provides the requested clarifi-cation.

(g) Section 923.26--Shoreline Ero-sion/Mitigation Planning. (1) One re-viewer suggested that this section also

should address the fact that erosion Isa natural ecological phenomenon andthat States should consider the im-pacts of mitigation or restoration onadjacent shorelines, littoral drift andother ecological processes such as ac-cretion.

NOAA response. NOAA has includedthis concept as paragraph (2) of Com-ment (c).

(2) Another commentator suggestedthat the word "can" in the first line ofparagraph (a) should be replaced withthe word "must."

NOAA respotse. The recommendedchange has been made.

SUBPART D

(a) Section 923.30-GencraL Onecommentator suggested the regula-tions cite the definition of "coastal.waters" from section 304(2) of the Act.

NOAA response. NOAA has addedthe citation as paragraph (d).

(b) Section 923.31-Inland Bound-aries. (1) One reviewer suggestedadding the words "which have directand significant impacts on coastalwaters" to paragraph (a)(1).

NOAA response. This suggestion hasbeen adopted.

(2) Another reviewer requested fur-ther clarification of what Is meant by"transitional and intertidal areas" Inparagraph (a)(3). This reviewer sug-gested "coastal areas that affect coast-al waters, as well as those that are dis.tinctly affected by coastal waters" asclarifying language.

NOAA response. NOAA has addedclarifying examples to paragraph(a)(3). These are more specific thanthe language suggested above.

(3) One reviewer suggested that "pe-riodic" in paragraph (a)(4), as it re-lates to tidal inundation. be defined.

.NOAA response. The word "regular"has been substituted for "periodic."

(4) One reviewer objected to the pos-sibility that interior portions of mainislands might be excluded from thecoastal zone and recommended thatthe last sentence of paragraph (a)(5)be deleted. Conversely, one reviewersuggested that this paragraph puts agreater burden of proof on affectedisland Jurisdictions than on mainlandcoastal States. Two reviewers suggested that this paragraph seemed toimply that only Island Jurisdictions,and not all coastal States, are requiredto include offshore Islands in theircoastal zones.

NOAA response. NOAA agrees withthe second commentator that islandsshould hate no greater burden ofproof as to the area included in thecoastal zone than mainland States.However, NOAA believes the languageof paragraph (a)(5) Imposes no greaterburden on islands than on mainlandStates. NOAA also agrees with thethird set of reviewers that proposedparagraph (a)(5) could be misread to

imply that coastal States do not haveto include offshore islands in theircoastal zone. NOAA has revised para-graph (a)(5) to remove any possibilityof such a misinterpretation.

(5) One reviewer requested addition-al guidance or examples in paragraph(b) specific to the Great Lakes States.

NOAA response. NOAA has reviewedthis commentary and believes addi-tional guidance is unnecessary. Whileparagraph (b)(2) is not relevant toGreat Lakes States, paragraphs (1)and (3) are.

(6) One commentator suggested thatit Is a clear intent of the Act that wa-tersheds (discussed in paragraph(b)(1)) which affect coastal watersmust be included in the coastal zone.Conversely, a couple of reviewers ob-jected to the latitude provided Statesto include entire watersheds and sug-gested that there is no statutory basisfor this provision. Another reviewersuggested the term "entire watershed"Is controversial. This reviewer suggest-ed that an upstream boundary basedon the normal or average position ofsaltwater intrusion would be moreworkable than the approach of theproposed regulations. Finally, one re-viewer recommended that the regula-tions indicate that nothing in thisparagraph is Intended to lessen theconsistency requirements for Federalprojects upstream that could alter thequality of coastal waters.

A1OAA response. With respect to thefirst two sets of comments, NOAA be-lieves the approach it has taken to in-clusion of entire watersheds in aState's coastal zone is a reasonableand correct one for the reasons con-tained in paragraph (b)(1) of §923.31.However, NOAA has clarified thatsuch watershed areas be included onlywhere there are uses that have directand significant impacts on coastalwaters.

With respect to the third comment,NOAA has removed the word "entire"from the heading of this paragraphand has included the concept of aver-age saltwater intrusion.

With respect to the last comment, itIs inappropriate to include, in the pro-gram development and approval regu-lations, commentary that is directed tothe Federal consistency requirementsof section 307 of the Act for whichthere are separate regulations (15CFR Part 930).

(7) Several reviewers objected to thedefinition of tidal influence, as fiveparts per thousand in paragraph(b)(2), as being too restrictive. Two ofthese reviewers suggested that theboundary extend to the area inundat-ed by tides from a one hundred-yearstorm. Another reviewer suggested theregulations require the inclusion ofrivers upstream to the limit of tidal in-fluence. One commentator suggestedthe salinity determination would re-


8387


.quire exceedingly expensive physicalanalyses and that reference to itshould be deleted. Finally one review-er suggested wording to limit thescope of this paragraph to areas "adja-cent to the State's shoreline" as de-fined in the Submerged Lands Act.

NOAA response. NOAA agrees that"five parts per thousand" is inappro-priate and therefore has dropped ref-erence to this term. NOAA has riotmade any of the other changes recom-mended above as it believes the pre-sent interpretation is correct. To adoptthe first two suggestions would exceedstatutory authority and to adopt thelast suggestion would be too limiting.

(8) One reviewer objected to permit-ting Indian non-trust lands to be com-mingled with trust lands or to be in-cluded in any manner in a coastal zonemanagement program.

NOAA response. This paragraph aswell as § 923.33(e), makes clear thattrust lands are excluded from a State'scoastal zone. However, non-trust lands,which are not owned, leased, held intrust or whose use is otherwise by lawsubject solely to the discretion of theFederal Government need not be ex-cluded from a State's managementprogram. Accordingly, NOAA sees nobasis for this reviewer's objection.Moreover, the possible tribal participa-tion discussed in § 923.33(e) was re-viewed with affected tribes.

(9) One reviewer suggested thatparagraph (c), by not requiring Statesto define the boundary in urban areason the basis of direct and significantimpacts on coastal waters, would un-dercut the purposes of the Act. An-other reviewer suggested that the areaof sewage collection or urban runoffdischarged into coastal waters couldbe a basis for determining urban coast-al boundaries.

NOAA response. NOAA does notIntend the commentary of paragraph(c) to undermine the purposes of theAct but rather to recognize the veryreal difficulties States face in trying todetermine direct and significant im-pacts in urban areas and to suggestsome options for determining a rea-sonable urban boundary. NOAA be-lieves the examples provided by thesecond commentator are particularlyuseful in this regard and has includedthem in this paragraph.

(10) One commentator objected tothe words "coastal resources" in para-graph (d) as providing too much lati-tude and suggested instead use of thewords "coastal waters" consistent withthe language of the Act.


(11) Three reviewers expressed con-cern over the time States have to de-termine if a location is in the coastalzone as provided in paragraph (e). Twoof these reviewers suggested 30 dayswas too much time and one suggested

a 10-day limit. Another commentatorrequested a clarification of "a reason-able period of time."

NOAA response. NOAA has addedthe suggestion that States attempt torespond to inquiries in as short a timeas possible and has noted that 30 daysis a maximum, not a minimum. Addi-tionally, NOAA has clarified what ismeant by "a reasonable period oftime."

(12) One reviewer suggested thatmaps, charts, and other graphics ap-propriate to understanding the provi-sions and geographic7 scope of themanagement program be a require-ment. Another review suggested that,based on experience with other pro-grams, eithe specific maps or no mapsat all be required.

NOAA response. As noted in an earli-er response to a similar-comment thatmaps of areas of particular concern berequired, NOAA does not find a statu-tory basis for making maps a requiredpart of program submission. In re-sponse to commentators' concerns,however, NOAA has deleted the word"generalized" in order to encouragemore specific maps.

(13) One commentator suggested thefollowing paragraph be added to thissection:

Comment. The landward extent of thecoastal zone Is to be determined by theState, subject to the statutory limitations.However, it is clear that the intent of Con-gress was that States delineate boundarieswith a relatively conservative approach, in-cluding only those "shorelands, the uses ofwhlch'have a direct and significant impacton the coastal waters." In the final analysisStates possess a great deal of discretion Indefining the inland boundaries of theircoastal zones, subject to the minimum re-quirements of the Act.

NOAA response. NOAA finds theabove to be confusing and contradic-tory and does not feel that any greaterunderstanding of the requirementswould be provided by adding this com-ment.

(c) Section 923.32-Seaward Bound-aries. One reviewer suggested the reg-ulations address the issue of disputedState boundaries. Two other reviewerssuggested that States delineate theirlateral seaward boundaries.

NOAA response. In response to boththese comments, paragraph (d) hasbeen added.

(d) Section 923.33-Excluded FederalLands. (1) Two reviewers objected tothe broad exclusion from the coastalzone of leased Federal lands or landsthe use of which is subject solely toFederal jurisdiction. One other com-mentator suggested that lease of Fed-eral holdings to private individuals orentities should not be excluded. Stillanother commentator was concernedhow the regulations would affect fre-quent surplusing of land.

NOAA response. The issue of what ismeant by the term "excluded Federal

lands" referenced in section 304(1) ofthe Act has been a longstanding andcontroversial one. The Issue was Ini-tially referred to the Department ofJustice. An Assistant Attorney Gener-al's opinion dated August 10, 1976 par-tially addressed the issue with respectto owned lands. The Issue of leasedlands was not resolved in that opinion.However, during a Office of Manage-ment and Budget-sponsored Quality ofLife Review of the Federal consistencyregulations (15 CIR Part 930), theissue was discussed again and the posl-tion contained in this section wasagreed to. With respect to the com-mentator's concern about Federallands leased to private parties,NOAA'b position Io that the landsthemselves, if owned by a Federalagency regardles of whether leased toa private party, are excluded. Howev-er, the activitlez of the private partyon those leased lands are subject tothe provisions of the State's manage-ment program if such activities haveeffects on the State's coastal zone,With respect to the comment on sur-plused lands, until the General Ser-vices Administration declares Federallands surplus and available for disposi-tion to other than a Federal agency,these lands are excluded. However, asparagraph (c) notes, States may indi.cate in their management program ap-propriate use of Federal lands if andwhen they are declared surplus,

(2) NOAA has changed all referencesto "areas" and "holdings" in this para-graph to "lands" to comport with thelanguage of section 304(1) of the Act.

(3) Two reviewers suggested thatguidance be provided regarding theeffect of management programs onFederal land acquisition proposals.These reviewers were concerned thatunless the ability of the Federal Gov-ernment to acquire or assist in the ac-quisition of lands is made clear, aState could attempt to block a land ac-quisition proposal. One of these re-viewers suggested that Federal agen-cies should be provided with theoption, at their sole discretion, of al-lowing lands they propose to acquireto remain within a State's coastalzone.

NOAA response. While NOAA appre-ciates the concerns of these reviewers,land not owned, leased, held In trustor whose use is otherwise by law sub-ject solely to the discretion of the Fed-eral Government is not excluded fromthe coastal zone. Accordingly, landthat may be acquired in the future bythe Federal Government cannot be ex-cluded in the present from a State'scoastal zone. NOAA also does not finda statutory basis for adding the lan-guage suggested by the one reviewer,It should be noted, however, that theFederal Government's powers of emi-nent domain are protected by the pro-visions of subsection 307(e) of the Act,


8388


(4) One reviewer'objected to the ap-parent requirement that States mapexcluded Federal lands as this wouldplace an unreasonable hardship onsome States.

NOAA response. This reviewer hasmisread the requirement as paragraph(a) says that States must "describe ormap" (emphasis added), leaving theoption to States as to whether oi notthey map excluded Federal lands.

(5) One commentator objected tothe language in paragraph (e), regard-ing tribal participation in coastal man-agement, asserting that it is highly of-fensive in its tone.

NOAA response. As noted in responseto an earlier comment, this statementwas reviewed by affected Indian tribesand no objections were received byNOAA.

(e) Section 923.34-Interstate Bound-aries. One reviewer suggested that therequirements of this section are weak,requiring no more than consultation.This commentator further suggestedthat a record of telephone conversa-tions and meetings, as suggested in thecommentary in paragraph (b), is suffi-cient to ensure coordination.

NOAA response. NOAA believes thepresent requirement is sufficient tomeet the purposes of the Act. NOAAhas deleted paragraph (b).

SUBPART E

(a) Section 923.40-General. Onecommentator suggested that it shouldbe a requirement that the authoritiesrelied upon must be capable of prohib-iting uses inconsistent with the man-agement program. This reviewer fur-ther suggested that the regulationsshould state that the adequacy of au-thorities will be scrutinized in light ofsubsection S02(g) of the Act whichspeaks to the present inadequacy ofpresent institutional arrangements forplanning and regulating 'land andwater uses.

NOAA response. NOAA believes thatthe requirements of this subpart al-ready require that authorities be capa-ble of prohibiting uses inconsistentwith the management program. How-ever, NOAA does not interpret this tomean that "management" necessarilyimplies prohibition of uses in all situa-tions. In response to the second com-ment, NOAA has added a new para-graph (c) discussing the Assistant Ad-ministrator's review responsibilitieswith respect to subsection 302(g) ofthe Act. -

(b) Section 923.41-Identification ofAuthorities. (1) One reviewer suggest-ed that States should be required to'show how "all" existing State laws,legislative history and court rulingssupport authorities relied upon.

NOAA response. The requirement toidentify "relevant" authorities is suffi-cient.

(2) One commentator suggested thatthe last sentence in paragraph (b)(1)

be expanded to allow a legal opinionto be obtained from the Governor'sdesignated legal advisor for coastalmanagement as an alternative to theState's Attorney General. Conversely,one reviewer suggested that "in theopinion of the Assistant Administra-tor" be deleted and the word "may"changed to "must."

-NOAA response With respect to thefirst comment, the purpose of thisparagraph Is to make it clear thatthere may be occasions when the As.sistant Administrator will Insist on alegal opinion being from the State'sAttorney General. The present word-ing does not preclude seeking such anopinion from the Governor's designat-ed legal advisor but does make clearthat sometimes this will not be suffi-cient to satisfy the Assistant Adminis-trator.

With respect to the second com-ment, there is no language in the Actor legislativq history that would makesuch an opinion mandatory.

(3) One reviewer suggested furtherguidance could be provided regardingresolution of conflict among compet-ing uses.

NOAA response. The guidance re-quested already is provided in Corm-nernt (W.

(4) One commentator suggested aclarification that the mechanisms toresolve conflicts discussed in para-graph (W must result in a legally bind-ing decision.

NOAA response. This suggestion hasbeen accepted in modified form sothat paragraph f) now reads, " * *provided that any procedure results ina decision which is binding upon theentities involved."

(5) In connection with paragraph(g), one reviewer suggested that Statesinclude evidence of a commitment touse identified funds to Implement theacquisition plans called for in thisparagraph.

NOAA response. NOAA has acceptedthis suggestion.

(c) Secti.on 923.42-Control Tech-niues. (1) One commentator suggest-ed the regulations were unclear as towhich policies a State must be able toenforce.

NOAA response. Clarification hasbeen added to § 923.3(h) where It Ismore appropriate.

(2) One reviewer noted that differ-ent" degrees of specificity may occurdepending upon the type of controlsystem a State Is using, and suggesteda statement to clarify that regardlessof the control technique selected, themanagement program. "as an integrat-ed whole, must set forth policies, crite-ria, and standards with the samedegree of specificity (and resulting ad-ministrative predictability) as wouldbe required for any other control tech-nique."

NOAA response. This suggestion hasbeen rejected as unnecessary and inap-

propriate. The criteria for approvabil-ity with respect to policy specificity iscontained in § 923.3(a)(2). As long asthe test contained therein is met,there is sufficient uniformity of speci-ficity.

(3) One commentator suggested thatthe word "policies" in paragraph (cXl)be deleted to follow more closely thelanguage of subsection 306(e)(1)(A) ofthe Act.

NOAA response. NOAA has acceptedthis suggestion.

(4) Three commentators objected tothe discussion is paragraph c) of pro-gram approval in the case where localprograms are not completed.

NOAA response If the conditions inparagraph (c)(4) are met, then approv-al of a State's program in advance oflocal program completion is warrant-ed. Paragraph (c)(4)(iv) specifies,among other things, that there mustbe "sufficient direct State authoritiesto ensure that land and water use deci-sions subject to the managemwit pro-gram will be consistent with the poli-cies, goals and objectives of the man-agement program between the time ofsection 306 approval and the timewhen all local programs are adopted."Also, see discussion of local programsunder major changs above.

(5) One commentator suggested theexample in paragraph (c)(2)(i) includereference to the potential of new de-velopment to damage historic and cul-tural resources. -

NOAA response The paragraph towhich the reviewer refers is a quotefrom an approved State program. Thishas been clarified in these regulations.

(6) One reviewer suggested each pro-gram should specify a means of over-riding conflicting local ordinances oractions.

NOAA response- The Act does not re-quire an override, per se, as suggestedby the commentator. It does requireStates to have a method of assuringthat local land and-water use regula-tions within the coastal zone do notunreasonably restrict or exclude landand water uses of regional benefit.These requirements are addressed Inff 923.13 and 923.43.

(7) One commentator suggested thatparagraph (c)(5) require a State toprovide notice to Federal agencieswhen It has determined that local pro-grams are in compliance with Statecriteria.

NOAA response. In response to thiscomment, a new paragraph (c)(4)(il)has been added to this section that re-quires procedures for State approvalof local programs to include provisionsfor.

(1) The public and governmental en-tities to provide input into the devel-opment of local programs;

(11) The public and governmental en-tities to make their views known priorto State approval of local -programs;and


8389


(iii) Review by the State of the ade-quacy of local consideration of facili-ties identified in the State's programas having national interests attachedto them.

(8) Four reviewers objected -to theterm "pattern of noncompliance" inparagraph (c)(6). Two of these review-ers suggested that in certain instanceseven a single noncompliance can havedevastating effects.

NOAA response. In view of thesecomments, NOAA has revised thisparagraph to provide that the moni-toring system niust be capable of de-tecting single instances of noncompli-ance where uses of regional benefit orfacilities in which there is a nationalinterest are involved.

(9) One reviewer felt the discussionof networkingin paragraph (d) was in-adequate and that the regulationsshould require States to demonstratethat:

(i) Existing, special purpose lawsadequately reflect and will be operatedin conformity with the State's man-agement program; and

(ii) Any executive order or intera-gency agreement is legislatively autho-rized and legally binding and enforce-able in State court.

NOAA response. These concepts al-ready are addressed in the regulations.Paragraph (d)(3) provides that " * *the effect of networking is to tie theimplementation of these individual au-thorities into a comprehensive frame-work that addresses more than the in-dividual responsibilities of eachagency and that makes these authori-ties part of an overall, unified strategyfor managing coastal land and waterresources. In applying existing au-thorities, the State must determinethat they can be used to implementthe full range of policies identified asnecessary for coastal managementpurposes." Paragraph (d)(4) states inrelevant part: "Each State agencywhich exercises statutory authoritythat is to be incorporated into themanagement program must be legallybound to exercise its authority in con-formance with the State's enforceablepolicies. This can be achieved throughan executive order or an interagencyagreement * * * provided that suchorder or agreement binds the affectedparties to conformance with relevantmanagement program policies."

(10) One commentator objected tothe provision in paragraph (d)(5) thatallows citizens as a vehicle for bringingsuit to ensure enforcement of intera-gency agreements. This commentatoralso objected to enforcement by aState agency or the Attorney Generalunless these have been given responsi-bility for enforcement.

NOAA response. NOAA does not un-derstand the basis for the reviewer'sobjections and thinks the present reg-ulations are reasonable. It is assumed

that a State agency or the AttorneyGeneral will not be responsible for en-forcement unless charged with and le-gally capable of assuming that respon-sibility.

(11) A couple of reviewers suggestedthat paragraph (e) should require ad-ministrative review for land and wateruse regulations (including exceptionsand variances thereto) in addition tothe items already included to comportmore closely with the language of sub-section 306(e)(1)(c) of the Act.

NOAA response. Paragraph (e)(1)has been revised accordingly.

(12) Two reviewers suggested thatparagraphs (e)(2) and (3) appear to bein conflict and that, at a minimum,paragraph (e)(3) should state which-type of actions may be exempted fromcase-by-case review.

NOAA response To avoid confusion,NOAA has deleted a portion of para-graph (e)(3).

(d) Section 923.43-Authorities Re-lated to Uses of Regional Benefit. (1)One reviewer suggested that a mecha-nism "for reviewing the impact oflocal policies on greater than local in-terests" does not meet the require-ments of subsection 306(e)(2) of theAct and that an "affirmative statutoryor regulatory mandate" is required.

NOAA response The present regula-tions require more than simply amechanism for reviewing the impactof local policies. Section 923.43(c) pro-vides in relevant part that States maymeet the requirements of this sectionthrough:

(i) Statewide siting laws that super-sede local regulations when necessary;or

(ii) Assurance that an adequateamount of sites are or can be set asidethrough:

(A) State acquisition programs;(B) Provision of sites in local maps

or ordinances; or(C)-State guidelines defining uses of

regional benefit and requiring theirconsideration as local implementationprograms are developed; or

(iii) Definition of what constitutesunreasonable restrictions or exclusionsand an administrative or judicialmeans for dealing with such restric-tions or exclusions when they occur.

(2) One reviewer suggested eliminat-ing the words "in addition to the re-quirement of §923.13 to determinewhat constitute uses of regional bene-fit."

NOAA response. These words havebeen left in, in the belief they clarifythat this section comprises the secondhalf of the requirements necessary tomeet subsection 306(e)(2) of the Act.

(e) Section 923.44-Air and WaterPollution Control Requirements. (1)One reviewer suggested language beincluded which recognizes the term"requirement" has been defined byEPA General Counsel to include any

enforceable standard or duty estab-lished pursuant to the Act.

NOAA response. This suggestion hasbeen incorporated into paragraph (a).

(2) This same reviewer made anumber of suggested revisions to thetable in this section to reflect changesresulting from recent amendments tothe Clean Air Act.

NOAA response. These suggestionshave been adopted.

(3) One commentator suggested thatold 15 CFR 923.44(b)(2) which encour-aged the development of working rela-tionships between air and water qual-ity agencies and coastal zone programsstill is appropriate and should be In-cluded. Relatedly, another commenta-tor suggested further discussion wouldbe helpful of ways to incorporatethese standards.

NOAA response. In response to thesecomments, paragraph (c)(1) has beenexpanded.

(4) One reviewer was concerned thatrequiring States to include in the man-agement program the more stringentstandards discussed in paragraph(c)(4) would require detail beyond thescope of practicality.

NOAA response. NOAA appreciatesthe concern of this reviewer but be-lieves the language of paragraph(c)(4)(ii) is sufficiently flexible, espe-cially in Its referral to "a separate ref-erence," to accommodate the review-er's concern.

f) Section 923.45-OrganizationalStructure No comments.

(g) Section 923.46-Designated StateAgency. One reviewer suggested thatthe designated State agency musthave the capability to enforce Imple-mentation in addition to the capabilityto monitor and evaluate implementa-tion.

NOAA response. Enforcement capa-bility need not rest with the designat-ed State agency. In many cases, otherState agencies, the courts, the Gover-nor, or an administrative mechanism,may be used to enforce implementa-tion.

(h) Section 923.47-Documentation,(1) One reviewer suggested that the"networking" of many independentgovernmental entities creates specialdocumentation problems. As examplesthis reviewer cited the fact that thepowers of Governors in many Statesare limited and that in some States of-ficials may be elected directly andhave authorities Independent of theGovernor.

NOAA response. NOAA regards theseexamples as legal Issues and not docu-mentation problems in the sense inwhich this section Is meant. Theseissues already are addressed In§ 923.42(d)(4).

(2) One commentator suggested thatthis section should be amended toensure that all portions of a manage-ment program be adopted only after


8390


duly noticed public hearings at whichthese portions are clearly identified aspart of the management program.

NOAA response. This comment ismore appropriately addressed as partof the discussion of Section 923.58-Public Hearings.

SUBPART F

(a) Section- 923.50-General. onecommentator suggested that the word"reconciliation" be substituted for"balancing" in the sentence thatreads, "The policies of section 303 ofthe Act require a balancing of varying,sometimes conflicting, interests beachieved * * *"

NOAA response. The semantic differ-ence seems to minor to warrant achange.

(b) Section 923.51-Federal-StateConsultation. (1) One reviewer recom-mended that this section be redraftedto reflect the obligation of States toseek and consider Federal interests, es-pecially those associated with facilitiesin which there may be a national in-terest pursuant to subsection 306(c)(8)of the Act.

NOAA response. The section as pres-ently written, especially paragraphs(b) and (c), more than adequately re-flect the concerns of the reviewer.Moreover, the obligation of States toconsider adequately facilities in whichthere is a national interest is ad-dressed at length in § 923.52.

(2) One reviewer suggested publicnotice be given of forthcoming con-tacts between the State and Federalagencies.

NOAA response. To impose this re-quirement, which NOAA regards asneither legally necessary nor appropri-ate, would create an administrativeburden that could render the wholeconcept of Federal consultation un-workable. Much of the consultationenvisioned by this section is anticipat-ed to be in the form of telephone calls,letters, and informal meetings. Requir-ing public notice of suchactivities isnot reasonable.

(3) One reviewer suggested that evi-dence of Federal-State consultation inthe form of a Federal agency state-ment be required.

NOAA response. The requirements ofparagraphs (b) (3) and (5) accomplishthe general purpose suggested by thereviewer without necessitating a state-ment from Federal agencies.

(4) Two reviewers commented thatthere is no language in the Act requir-ing,' States to accommodate, evenwhere "appropriate," Federal views onsubstantive elements of a State's pro-gram, and that the regulations shouldmake clear that States determine-whether accommodation is "appropri-ate,"

NOAA response. NOAA has acceptedthe above recommendation and hasclarified paragraph (b)(4) accordingly.

(5) One reviewer suggested that thewords "should" and "encouraged to"In paragraph (f) should be changed to"shall" and "must." Relatedly this re-viewer felt that the discussion of Fed-eral agency contributions to nationalinterest statements should be cast interms of Federal agencies being thedeterminers of national interest.

NOAA response. The present phra-seology is correct as It is meant to pro-vide suggestions as to viable ap-proaches to consultation. It is notmeant to be all inclusive nor the onlymeans of approaching the consulta-tion requirements. The question ofhow national interests are determinedis discussed in response to similar com-ments directed at § 923.52.

(W) Section 923.52-Conslderation ofNational Interests. (1) Several com-mentators suggested that this sectionfails to implement subsection 306(c)(8)of the Act properly by not providingsufficient guidance as to what consti-tutes "adequate consideration" by aState.

NOAA response. Paragraph (I) dis-cusses the items the Assistant Admin-istrator will assess in determining if aState has given "adequate consider-ation" to facilities in which there is anational interest.

(2) Five commentators objected tolanguage in (what are now) para-graphs (b), (f), and (g) that left It toStates to determine the nature of na-tional interests to be consideredduring programdevelopment and afterprogram implementation, maintainingthat it is a function of Federal agen-cies to determine what constitutes thenational interest. In this connection,one commentator recommended thatwords such as "determining" or "forderiving" be replaced with "consider-ing" and "which specify" in order toalleviate these commentators' con-cerns.

NOAA response.-NOAA has made therecommended word changes but para-graph (g) indicates that Federal laws,and policy statements from the Presi-dent, in addition to Federal agencystatements, are sources which specifynational interests to be considered bya State.

(3) One commentator suggested therequirements in (now) paragraph(b)(2) be expanded to require regionaland local interests be weighed and re-flected in the management program.

NOAA response. Subsection 306(c)(8)is oriented towards consideration ofnational interests. However, as notedin the major changes above, para-graph (a) has been revised to note thatthe national interest In particular fa-cilities shall be done in the context ofother Federal, State and local con-cerns involving adverse economic,social or environmental impacts.

(4) One reviewer suggested that itwould be helpful to provide an expla-

nation of what interstate energy plans(referenced in now paragraph (}(1))should be considered.

NOAA response. Paragraph (c(1)has been clarified to indicate that theinterstate energy plans referred to arethose developed pursuant to section309 of the Act.

(5) One reviewer objected to (now)paragraph (c) as this reviewer does-notbelieve State programs can be ap-proved until they meet the energy fa-cility planning requirements of subsec-tion 305(b)(8) of the Act.

NOAA response. As noted in responseto a similar comment on §923.14.NOAA has reviewed the legislative his-tory and the language of the Act andis convinced that Congress intendedthat State programs, approved prior toOctober 1, 1978, have until that dateto meet the requirements of subsec-tion 305(b)(8).

(6) One reviewer objected to refer-ence in (now) paragraph (W to "region-al demands" as this is not a necessarycriterion for determining if a facilitymeets "requirements which are otherthan local in nature."

NOAA response. The commentary inparagraph (W is meant to assist Statesin meeting the requirements of thissection. To the extent reference to"regional demands" is not helpful, ithas been deleted. .(7) One commentator suggested that

proposed paragraph (e) (now para-graph (f)) should require that all com-ments received from relevant Federalagencies be made available for publiccomment before the Assistant Admin-istrator makes a final determinationon the approvability of a State's pro-gram.

NOAA response. Section 923.51(b)(6)already requires States to indicate thenature of major comments by Federalagencies during program development.The purpose of this requirement is toenable the Assistant Administrator toassess a State's consideration of thesecomments. These comments are in-cluded as part of the Draft Environ-mental Impact Statement (DEIS) dis-tributed for public review and com-ment.

(8) Numerous additions to Tables 1and 2 were suggested.

NOAA response. With very few ex-ceptions, the recommended changes toTables 1 and 2 were made. Readers areinvited to compare the tables as theyappeared In the proposed regulationsand as they now appear herein for spe-cific additions. Those additions thatwere not adopted were rejected be-cause they were not compatible withthe Intent of the tables.

(9) One reviewer suggested thatsources in (now) paragraph (g) for de-riving national interests should belimited to Federal laws, policy state-ments from the President, and state-ments from Federal agencies. This re-


8391


viewer maintained that plans fromother Federal, State or interstateagencies (such as interstate energyplans) and testimony from publichearings aie too "ephemeral" to beused as sources for deriving nationalinterests.

NOAA response. Plans from othergovernmental entities, especially Fed-eral agencies, may be useful sourcesfor specifying the national interest infacilities. Accordingly, sentence (g)(4)has been left in these regulations.NOAA agrees that testimony frompublic hearings or other public inputmay be too "ephemeral" to be a usefulsource and accordingly has deletedthis reference.

(10) One commentator indicatedthat (now) paragraph (i)(3) was un-clear whether State responses to Fed-eral agencies' comments should be di-rectly to the commenting agency orwhether the program document wouldsuffice as a response.

NOAA response. To the extent aState's program docfiment meets therequirements of §923.51(b)(5), withspecific reference to major siting con-cerns raised by Federal agencies, theprogram document will suffice. Theremay be situations, however, wheredirect response to a Federal agency,separate from any response in the pro-gram document, may be both appro-priate and desirable. Accordingly,States may find it useful to maintain aseparate file of direct responses toFederal agencies.

(d) Section 923.53-Federal Consis-tency Procedures. (1) One commenta-tor suggested that the words "in theopinion of the State" should-be insert-ed ahead of "will be subject to theseprovisions." This insertion is the sameas in 15 CFR 930.35 of the FederalConsistency regulations.


(2) One reviewer suggested States beable to include the consistency proce-dures as an appendix rather than aspart of the main body of the docu-ment.


(3) In addition, this section has beenexpanded to provide States with fur-ther guidance as to the Federal consis-tency procedures and listings thatneed to be included as partof themanagement program.

(e) Section 923.54-Mediation. (1)One commentator suggested the regu-lations ignore the statutory directivethat the Secretary shall seek to medi-ate, by allowing any party to refuse toparticipate. Relatedly, another review-er objected that mediation effortsshould last only so long as both par-ties agree to participate.

NOAA response. Unlike arbitration,the results of mediation are not bind-Ing but rather advisory. The essence of

mediation is that disagreeing partiesvoluntarily agree to discuss the issuewith a neutral party acting as bothreferee and conciliator. Under the con-cept of mediation and under the stat-ute, the Secretary has no authority toforce parties to agree to Initiate medi-ation, or even to continue mediation,once it has begun.

(2) One reviewer suggested that theregulations be revised to require allmediation conferences be public.

NOAA response. This is not requiredunder the Administrative ProcedureAct or any other Federal law. Howev-er,'in response to this reviewer's con-cern, NOAA has added a provision toparagraph (f) for notice in the FRnR-AL REGISTER of such conferences.

(3) In connection with paragraph (i),one reviewer suggested the regulationsinclude criteria for the Assistant Ad-ministrator's determination of wheth-er inclusion of a serious disagreementin a State's management programwould preclude approval. Another re-viewer suggested a time limit be pro-vided for the Assistant Administrator'saction. Yet another reviewer suggestedthat the regulations should state thatthe Assistant Administrator's decisionwould be an appealable action.

NOAA response. With respect to thefirst comment, NOAA cannot foretellthe nature of disagreements and whattheir effect would be on program ap-provability. Therefore, NOAA cannotprovide the criteria requested.

Similarly, NOAA, cannot foretell theappropriate amount of time that willbe required to determine if inclusionof a disagreement will have a negativeeffect on program approvability.

Finally, with respect to the last com-ment, to the extent the Assistant Ad-ministrator's decision is an appealableitem, it is so on the basis of laws otherthan this Act and therefore the regu-lations need not state this to make It afact.

(f) Section 923.55-Full Participa--tion. (1) One commentator felt it wasunclear if this section applied to Fed-eral agencies, and accordingly, wheth-er a mechanism was required to guar-antee continued Federal consultationafter program approval.

NOAA response. While the require-ments of this section do not apply toFederal agencies, the requirement of§ 923.52(b)(3) for a process for consid-eration of the national interest in fa-cilities that are more than local innature during program implementa-tion guarantees a mechanism for con-tinued Federal consultation. Even ifsuch a requirement were not part ofthe regulations, common sense woulddictate the necessity of a continuingState-Federal consultation element.

(2) One reviewer suggested thatparagraph (a)(1) be expanded to re-quire: a "sunshine" provision for opensessions; an obligation on States to so-

licit and consider public commentz:and to define Interested public andprivate bodies.

NOAA response. The thrust of thesesuggestions is addressed in the re-quirements of this section, especiallyparagraph (a) (2) and (3), and para-graph (2)(6) which has been added torequire that public meetings be heldat accessible times and locations, withreasonable notice and availability ofmaterials.

(3) One reviewer suggested proposedparagraph (e) should be expanded torequire States to summarize whichpublic information techniques wereused, when, and how effective theywere.

NOAA response. The present require-ments of paragraph (a) already coverthe basic purpose of this suggestion-to ensure public knowledge of and par-ticipation in program development. Inany case, NOAA does not intend theitems in proposed paragraph (e) (nowparagraph (d)), to be requirements butrather suggestions.

(g) Section 923.56-Plan Coordina-tion. (1) Three commentators suggest-ed that no program should be ap-proved when unresolved conflicts existwith other public agency plans.

NOAA response. This recommenda-tion is not a requirement of the Act.Subsection 306(c)(2)(A) calls for co-ordination which does not necessarilyimply resolution of conflicts. More-over, this coordination is only requiredfor local, areawide, and interstateplans in effect on January' 1 of theyear in which the State's program issubmitted, not for all public agencyplans. In any case, paragraph (a)(3) al-ready addresses the issue of resolvingconflicts among plans.

(2) One reviewer suggested theurban transportation planning pro-gram be added to the list of areawideplanning programs in paragraph (c).Another suggested adding State imple-mentation plans (SIP's) pursuant tothe Clean Air Act. A third reviewerrecommended the word "applicable"precede "interstate" programs.

NOAA response. NOAA has adoptedthe first and third su ggestions. NOAAhas not included reference to SIP's Inthis list because they are not local,areawide, or interstate plans in themeaning of subsection 306(c)(2)(A) ofthe Act. In any case, the requirementfor incorporating the Clean Air Actstandards are addressed by separatesections of the Act and these regula-tions.

(3) One commentator questionedwhether the A-95 process discussed Inparagraph (d) can serve as a conflictresolution mechanism.

NOAA response. The A-95 processcan serve as a conflict resolutionmechanism because the proceduresprovide that conferences may be heldto resolve conflicts if they are notedduring the course of A-95 review.

FEDERAL REGISTER, VOL 43r NO. 41-WEDNESDAY, MARCH 1, 1978

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(4) One reviewer suggested that acommittee of local officials appointedfrom each municipality in the coastalzone could be a viable alternative tothe use of the A-95 clearing houses asa conflict resolution mechanism.

NOAA response. NOAA has adoptedthis concept as paragraph (e) and ex-panded it to include regional, State, orinterstate officials as well.I (h) Section 923.57-Continuing Con-sultation. (1) One reviewer suggestedthat the distinction in paragraph.(e)(2) between a legislatively-mandat-ed State agency "management pro-gram decision" and a discretionary one' on the part of a State would be diffi-cult to maintain. Accordingly, this re-viewer suggested the regulations in-clude a provision for local consultationon major, legislatively-mandated StateIagency decisions.

NOAA response. The discussion andexamples in paragraph (e)(2) of whatwould constitute legislatively-mandat-ed versus-.discretionary decisions aresufficiently clear to make distinctionsas to which State actions need to besubject to the local consultation re-quired by this section and which donot. Accordingly, the reviewer's recom-mendation has iot been adopted.

(2) One reviewer suggested the word"landmarks" in sentence (e)(2)(v) bechanged to "resources."


(3) One commentator recommendedclarification of paragraph (e)(3) to in-dicate whether a conflict exists if localregulations are stricter than those ofthe State. Another reviewer suggesteddeleting the words "incompatiblewith."

NOAA response. NOAA has followedboth recommendations. With respectto the first comment, paragraph (e)(3)now indicates .that a conflict mayoccur when local requirements arestricter than the States.

(4) One reviewer suggested that thephrase "local zoning ordinance, deci-.sion or other action" in paragraph(e)(4) be defined very broadly to in-clude approvals, denials, amendments,variances, and special exceptions. Con-versely, another commentator suggest-ed that the proposed definition, in in-cluding variances and special excep-tions, already was too broad.

IJOAA response On reconsideration,NOAA believes the term. "local zoningordinance, decision or other action"should be defined narrowly, ratherthan broadly, in order to keep the con-sultation requirements from becomingtoo burdensome and thereby unworka-ble. Accordingly,,the term is limited tozoning ordinances, master plans andofficial maps.

(5) One reviewer requested that thespecific circumstances under which alocal government forfeits its right tocomment be defined."

.NOAA response. This Information al-ready can be found in paragraph(e)(6).

(I) Section 923.58-Public Hearings.(1) One commentator suggested thatall portions of a State's managementprogram should be subject to a publichearing. This same revJewer objectedto the provision in paragraph (d)(3)that the hearing(s) could be on thefull scope of the management programbut not necessarily on the documentper se.. NOAA response The requirement tohold public hearing(s) on the scope ofthe management program is reason-able. The program document is oftenextremely long and sometimes filledwith detailed information necessary tomeet some of the requirements of theAct but not particularly essential tothe general public to understandingthe impact of the program. SomeStates prepare executive summaries orsome other shortened version of theprogram which describes Its scope inan easily understandable form to thegeneral public. However, to addressthe reviewers concern, an additionalprovision has been added to paragraph(d)(3) to the effect that States mustprovide copies of the document on re-quest if the hearings are not on thedocument per se.

(2) One reviewer suggested that allpertinent materials, not just agencymaterials, be made available to thepublic at the time of a public hearing.

NOAA response. This Is not neces-sary as the term "agency materials"includes -all pertinent materials thatthe agency used in development of themanagement program.

(3) One commentator suggested thatparagraph (d)(6) be amended to allowStates to submit summaries of publichearings within 30 days followingformal program submittal to theOffice of Coastal Zone Management(OCZM) for threshold review.

NOAA response. This recommenda-tion has been adopted.

SUBPART G

(a) Section .923.62-EnvironmentalImpact.Assessments (1) Two reviewerssuggested the guidance on preparingenvironmental impact assessments bedeleted and, in Its place, reference bemade to Council on EnvironmentalQuality (CEQ) guidelines.

NOAA response. NOAA has retainedthis guidance because there are nu-merous and repeated requests fromStates for this information. If andwhen CEQ revises its guidelines oradopts regulations on the subject,OCZM will review and revise, If neces-sary, the information contained in thissection.

(2) One commentator suggested, Inconnection with paragraph (c), that Itwould be helpful to list the criteria tobe used to determine when an Envi-

ronmental Impact Statement (EIS)will be necessary for segment pro-grams.

A±OAA response- The criteria OCZMuses to determine if an EIS is neces-sary for a segment program, a full pro-gram, or an amendment, are thosecontained in the National Environ-mental Policy Act (NEPA) and CEQguidelines. Paragraph (c) has been re-vised to reflect this.

SUBPART H

(a) Section 923.71-RecommendedFormat for Program Submission. (1)One reviewer commented that the sec-tion is unclear in differentiating re-quirements from recommendations.

NOAA response. Paragraph (a) clear-ly states this sectioff is intended asguidance.

(2) One commentator suggested thatas part of its submission, a Stateshould be required to include evidencethat It has the capability in terms ofstaffing and funding to implement theprogram. This reviewer also recom-mended that States be required to de-scribe how they intend to allocatestaff and money to implement the pro-gram.

NOAA response. While there is nostatutory basis to require this informa-tion as part of the program submis-sion, this information is contained inthe separately submitted grant appli-cation for program implementationfunds. See § 923.95(c).

(b) Section 923.72-Review/ApproralProcedures. (1) One reviewer suggestedthat paragraph (a) should include achecklist of findings required pursuantto sections 305 and 306 of the Act.This reviewer also suggested that aState be provided an Itemization of de-ficiencies if Its program is disapproved. -

NOAA respo=e. The checklist offindings already can be found in thechart that is part f § 923.71. The rec-

. ommendation that States be advisedof deficiencies precluding approval hasbeen added to paragraph (D.

(2) Two reviewers suggested thatparagraph (b) indicate that the reviewand comment periods noted thereinare based on the requirements ofNEPA and CEQ guidelines.

NOAA reo=e- This suggestion hasbeen adopted.

(3) One commentator suggested thatOCZM assume the responsibility forprinting the Final EnvironmentalImpact Statement (FEIS).

NOAA response. Paragraphs (a) and(c) have been revised to Indicate thateither the State or OCZM will printthe DEIS and FEIS, depending onState capabilities.

(c) Section 923.73-Miscellaneous(1) One reviewer suggested this sectionindicate the conditions that couldextend the review procedures.

NOAA response This is unnecessaryas these conditions already are dis-cussed in § 923.72.


8393


(d) Sections 923.74-923.77-Prelimi-nary Approval. (1) As noted in the dis-cussion under major changes thesesections now contain the informationon preliminary approval previouslycontained in 15 CFR Part 920.

SUBPART I

(a) In the draft regulations issuedAugust 29, 1977, this subpart appearedas Subpart J. Accordingly, commentsaddressed to Subpart J of the draftregulations are responded to hereun-der.

(b) For reasons cited in majorchanges above, § 923.91 of the draftregulations dealing with review of per-formance of approved programs hasbeen dropped. ?'

(c) Section 923.80-General. Onecommentator suggested that beforeany refinement or amendment is ap-proved by the Assistant Administrator,Federal agencies should be notifiedand consulted.

NOAA response. In the case ofamendments, Federal agencies are no-tified and consulted before the Assis-tant Administrator takes action. Inthe case of refinements, notification ofFederal agencies occurs after the As-sistant Administrator takes action dueto the minor nature of the change in-volved.

(d) Section 923.81-Amendments ofModifications to Approved Manage-ment Programs. (1) One reviewer sug-gested "and/or" In paragraph. (b)(3) bechanged to "and."

NOAA response, This change hasbeen made.,

(2) One commentator suggested thatthe requirement for notifying thoseaffected by changes to a State's man-agement program be made stronger.

NOAA response. The requirement inparagraph (c)(4) for public notice anda discussion of the degree and natureof public interest is sufficiently strong.

(e) Section 923,82-Refinements toApproved Management Programs, (1)One reviewer objected to this entiresection and suggested OCZM clarifywhat type of action constitutes a re-finement.

NOAA response. Section 923.80 hasbeen rewritten to provide a rather ex-tensive list of examples of actions thatwould constitute changes to the man-agement program. Whether thesechanges represent amendments or re-finements is to he based on the criteriacontained in §§ 923.81(b) and 923.82(b).As § 923.80(e) indicates, the designatedState agency has the responsibility formaking the initial determination withthe Assistant Administrator retainingthe responsibility of reviewing the cor-rectness of this determination.

(2) Two commentators suggestedpublic notice'be given of a State's re-quest for refinements. Another review-er requested notification be providedFederal agencies.

NOAA response Paragraph (c)(2)(iii)has been revised to require an indica-tion that the public and affected par-ties have been informed of the pro-posed change.

(3) One commentator suggested anadditional requirement be added toparagraph (c)2) that States include,as part of their request for a refine-ment, a determination that there areno significant changes in previouslyapproved intergovernmental relation-ships or if there are changes, thesehave been concurred with by the af-fected parties.

NOAA response. This recommenda-tion has been adopted as a new para-graph (v).

(f) Section 923.83-Termination andWithdrawal of Administrative Fund-ing. (1) One reviewer requested clarifi-cation of the effect of termination offunding on the Federal . consistencyprovisions. Two other commentatorssuggested a provision be added to'notify Federal agencies when fundingis terminated.

NOAA response. Paragraph (b)(2)has been revised to indicate that Fed-eral consistency, requirements nolonger apply once funding is terminat-ed. Notice of terminations will beplaced in the FPERAL REGISTER inorder to apprise all interested parties,including Federal agencies.

(2) One reviewer suggested that in-terested parties be invited to commenton a State's failure to comply with itsapproved management program.

NOAA response. Opportunity for thepublic and other interested parties tocomment already is provided in con-nection with public sessions sponsoredannually by OCZM and the State toreview the State's performance pursu-ant to its approved management pro-gram.

(3) One reviewer suggested that theAssistant Administrator should havemore than just the ability to recom-mend termination to the NOAAGrants Office, as provided in para-graph (b)(2). This reviewer maintainedthe Assistant Administrator should beable to make and implement a decisionto terminate funding.

NOAA response. Under NOAA grantsmanagement procedures, official noti-fication of grant terminations comefrom the NOAA Grants Office.

SUBPART J

(a) In the draft regulations issuedAugust 29, 1977, this subpart appearedas Subpart I. Accordingly, all com-ments addressed to Subpart I of thedraft regulations are responded tohereunder.

(b) As noted in major changes above,the information in 15 CFR 920.50-920.61 pertaining to applications forprogram development and preliminaryapproval grants pursuant to subsec-tions 305 (c) and (d) of the Act respec-

tively is now contained in this subpart,especially §§ 923.92(b), 923.96, 923.97,and 923.99.(c) Section 923.90-General. One re-

viewer suggested language to requireadequate notice be given States in theevent the Federal share of a grant willbe less than the eighty (80) percentshare allowed under the Act.

NOAA response. The reviewer hasnot suggested what would constituteadequate notice. Present OCZM prac.tice Is to advise States of the Federalrate in advance of submission of appli-cations by a State. Finally, It shouldbe noted that the language of subsec-tions 305(c) and 306(a) with respect tothe Federal share is permissive. Inother words, it sets 80 percent as ama-kimum.

(d) Section 923.91-Administrationof the Program. No comments.

(e) Section 923.92-State Responsi-bility. (1) One reviewer suggested thatthe initial grant, signed by the Gover-nor, identify administrative personnelauthorized to request amendments.

NOAA response. This comment Ismore appropriate to section 923.81where, it should be noted, paragraph(c)(1) has been revised to allow amend-ments to be submitted by the head ofthe administering agency designatedby the Governor.

(2) Two reviewers requested clarifi-cation as to how funding requests forprograms authorized under other sec-tions of the Act could be coordinatedwith requests for program develop-ment or implementation funds. One ofthese reviewers suggested that para-graph (c) refer to the State matchingshare as well as the Federal portion ofa grant.

NOAA response. The requested clari-fication regarding coordinating fund-ing requests has been added to§ 923.95(h) where It is more appropri-ate. The suggested clarification toparagraph (c) has been adopted.

(f) Section 923.95-Eligible Costs, (1)Five commentators questionedOCZM's interpretation of eligible pro-gram implementation costs as beingtoo restrictive and not helpful in car-rying out d State's management pro-gram. These commentators suggestedthat limited construction costs shouldbe allowed to achieve program 6bjec-tives, particularly in areas designatedfor preservation or restoration.

NOAA response. Section 923.95 hasbeen substantially revised in light ofthese comments, especially paragraphs(c)-(f).

(2) One reviewer suggested thatequipment purchases of $1,000 ormore should be the amount at whichNOAA approval would be required,rather than the $500 in proposed para-graph (c) (now paragraph (g)).

NOAA response. This suggestion hasbeen adopted.

(3) One commentator suggested theterm "administrative funding" was a


8394


poor term as it implied to the reviewerthat only personnel costs could befunded with an administrative (section306) grant.

NOAA response. NOAA has clarifiedthe purposes to which section 306funding can be put in paragraphs (c)-(e). In addition, § 923.90(e) notes thatthe terms "administrative grant" and"implementation grant" are used in-terchangeably.

(g) Section 923.102-Grant Amend-ments. One reviewer objected to thefact that grantees would be advised ofdisposition on their grant amendmentrequests (as distinct from programamendment requests) within a thirty(30) day period and requested ashorter notification period.

NOAA response. Given the fact thatall grant amendment requests must gothrough the NOAA Grants Office andthat Office handles grants activitiesfor all NOAA funding programs, 30days is a reasonable amount of time toallow for processing of grant amend-ment requests.

PuBLic REvIEW AND Com

NOAA invites public review andcomment on these interim final regu-lations so they again may be modified,if necessary and where legally permis-sible, to fully satisfy the requirementsof the Act in a manner which address-es the concerns of all parties affectedby the regulations. Written commentsshould be submitted to: State Pro-grams, Attention: Carol Sondheimer,Office of Coastal Zone Management,Page Building 1, 3300 WhitehavenStreet NW., Washington, D.C. 20235,on or before April 30, 1978. Requestsfor meetings to discuss these regula-tions during this comment period maybe made in writing or by phone toCarol Sondheimer, 202-634-1672. Fol-lowing the close of the commentperiod, and after review of comments,these regulations may be amended andwill be published as final regulationsin the FEEAnL REGISTER.

Dated: February 22, 1978.T. P. Grman,

Assistant AdministratorforAdministration.

PART 923-COASTAL ZONE MANAGEMENTPROGRAM APPROVAL REGULATIONS

Subpart A-General

Sec.923.1 Purpose.923.2 Definitions.923.3 General requirements.

Subpart B-Uses Subject to Management

923.10 General.923.11 Uses subject to management.923.12 Use permissibility.923.13 Uses of regional benefit.923.14 Energy facility planning process.

Subpart C-Special Management Areas

923.20 General

923.21 Areas of particular concern.923.22 Priorities of uses.923.23 Other areas of particular concern.923.24 Areas for preservation or restora-

tion.923.25 Shorefront access and protection

planning.923.26 Shoreline erosion/mitigation plan-

ning.

Subpart D-4oundares.

923.30923.31923.32923.33923.34

General.Inland boundaries.Seaward boundaries.Excluded lands.Interstate boundaries.

Subpart E-Authortle$ and Organization

923.40 General.923A1 Identification of authorities.923.42 Control techniques.923.43 Authorities related to uses of re-". gional benefit.

923.44 Air and water pollution control re-quirements.

923.45 Organizational structure.923.46 Designated State agency.923.47 Documentation.

Subpart F-Coordination, Public Involvement andNational Intoteis

923.50923.51923.52923.53923.54923.55923.56923.57923.58

General.Federal-State consultation.Consideration of national Interests.Federal consistency procedures.Mediation.Full participation.Plan coordination.Continuing consultation.Public hearings.

Subpart G--Miscellaneous923.60 General.923.61 Segmentation.923.62 Environmental Impact assessments.

Subpart H I-evew/Approval Procedures923.70 General.923.71 Recommended format for program

submissions.923.72 Review/approval procedures.923.73 Miscellaneous.923.74 Preliminary approval.923.75 Eligibility for considemton.923.76 Criteria for preliminary approval.923.77 Preliminary approval review/ap-

proval procedures.

Subpart I-Changes to Approved Managementprograms

923.80 General923.81 Amendments or modifications to ap-

proved management programs.923.82 Refinements to approved manage-

ment programs.923.83 Termination and withdrawal of ad-

rantistrative funding.Subpart J,-Applications for Program Development or

Implementation Grants923.90 General.923.91 Administration of the program.923.92 State responsibility.923.93 Allocation.923.94 Geographic segments.923.95 Eligible program mplementation

costs.923.96 Applications for Initial program de-

velopment or implementation grants.923.97 Applications for subsequent pro-

gram development grants.

923.98 Applications for subsequent pro-gram Implementation grants.

923.99 Applications for preliminary ap-proval grants.

923.100 Applications for three new plan-ning elements.

923.101 Approval of applications.923.102 Grant amendments.

AmmoT rrr Secs. 305, 306, 307, and 312,Coastal Zone Management Act of 1972. Pub.1,. 92-583, 86 Stat. 1280, as amended by Pub.L. 94-370, 90 Stat. 1013.

Subpart A-General

§ 923.1 Purpose.(a) The primary purpose of these

regulations is to set forth the criteriaby which State programs submitted tothe Assistant Administrator for man-agement program approval pursuantto section 306 of the Act will be evalu-ated. These regulations also establishthe procedures by which States meet-Ing the approval criteria may applyfor administrative grants pursuant tosubsections 306 (a) and (h) of the Act.Also included In these regulations arethe procedures by which programssubmitted for preliminary or full ap-proval pursuant to sections 305(d) or306 of the Act, respectively, will be re-viewed; the conditions under which ap-proved programs may be altered; andthe conditions under which grantsmay be terminated.

These regulations also establish theprocedures for States to apply for pro-gram development, preliminary ap-proval or program implementationgrants pursuant to subsections 305(a),305(d) and 306 of the Act, respectively.

(b) Sections 305, 306 and 307 of theAct set forth requirements which mustbe fulfilled as a condition of programapproval. The specifics of these re-quirements are set forth below inthese groupings. General Require-ments; Uses Subject to Management;Special Management Areas; Bound-aries; Authorities and Organization;Coordination, Public Involvement andNational Interests; and Miscellaneous.All relevant sections of the Act aredealt with under one or more of thesegroupings but not necessarily in theorder in which these sections appearin the Act.

(6) In summary, the requirementsfor program approval are that a Statedevelop a management program that:

(1) Identifies and evaluates thosecoastal resources recognized in the Actthat require management or protec-tion by the State;

(2) Reexamines existing policies ordevelops new policies to manage theseresources. These policies must be spe-cific, comprehensive and enforceable,and must provide an adequate degreeof predictability as to how coastal re-sources will be mnanaged;

(3) Determines specific uses and spe-cial geographic areas that are to besubject to the management program,-


8395

RULES 'AND REGULATIONS

based on the nature of identifiedcoastal concerns. The basis for manag-ing uses (or their impacts) and areasshould be based on resource capabilityand suitability analyses, socfo-econom-ic considerations and public prefer-ences;

(4) Identifies the inland and seawardareas subject to the management pro-gram;

(5) Provides for the consideration ofthe national interest in the planningfor and siting of facilities that meetmore than local requirements; and

(6) Includes sufficient legal authori-ties and organizational arrangementsto implement the program and toinsure conformance to it.

In arriving at these substantive as-pects of the management program,States are obliged to follow an openprocess which involves providing infor-mation to and considering the inter-ests of the general public, special In-terest groups, local governments, andregional, State, interstate and Federalagencies. .-

(d) SulJiQits A-D (Q§ 920.1-920.32) ofthe 15 CFMPart 920 Regulations per-taining to program development aresuperceded by the requirements con-tained herein. Subpart E (§§ 920.40-920.43) of the 15 CFR Part 920 Regu-lations dealing with preliminary ap-proval pursuant to subsection 305(d)of the Act- have been Incorporatedherein as part of Subpart H (§§ 923.74-923.77). Subpart F (§ 920.50-920.61)dealing with applications for programdevelopment grants have been includ-ed herein in Subpart J (§ 923.96-923.102).

(e) Care has been taken in the use ofthe following words: "must," "shall,""provided that," "may," and "should."Wherever possible the words "must,""shall," and "provided that" appear insections entitled Requirement. Howev-er, even when such words appear in

.Comment sections, they shall be inter-preted as requirements of these regu-lations. The words "should" or "may"are to be interpreted as recommenda-tions, and not as requirements for pro-gram approval.

(f) States should note that, whilethey must meet the requirements ofthese regulations, the presentation ofhow these requirements are met-either to the Assistant Administratoror to the public-need not be in theorder or terminology used herein. (Seesection 923.71 for further discussion ofthe program submission format.)

§ 923.2 Definitions.(a) The term "Act" means the Coast-

al Zone Management Act of 1972, asamended.

(b) The term "Secretary" means theSecretary Of Commerce or his/her des-ignee. With the exception of the medi-ation functions discussed in section923.54, all functions of the Act have

been vested in the Assistant Adminis-trator for Coastal Zone Managementbased on duly executed delegations ofauthority from the Secretary to theAdministrator of the National Oceanicand Atmospheric Administration(NOAA) by Amendment 5 of the De-partment of Commerce OrganizationalOrder 25-5A, dated June 3, 1977; andfrom the Administrator to the Assis-tant Administrator for Coastal ZoneManagement by NOAA Circular 78-10.

(c) The term "Assistant Administra-tor" means the Assistant Administra-tor for Coastal Zone Management, Na-tional Oceanic and Atmospheric Ad-ministration, U.S. Department ofCommerce.

(d) The term "relevant Federal agen-cies" means those Federal agencieswith programs, activities, projects. orregulatory, financing or other assis-tance responsibilities, in, the followingfields which could impact or affect aState's coastal zone:

(1) Energy production or transmis-sion,

(2) Recreation of an interstatenature,

(3) Interstate transportation,(4) Production of food and fiber,(5) Preservation of life and property,(6) National defense,(7) Historic, cultural, esthetic and

conservation values,(8) Mineral resources and extraction,

and(9) Pollution abatement and control.The following are defined as rel-

evant Federal agencies:

Department of Agriculture;Department of Commerce;Department of Defense.Department of Energy;Department of Health, Education. and Wel-

fare;Department of Housing-and Urban Develop-

ment;Department of the Interior;Department of Transportation;Environmental Protection Agency;Nuclear Regulatory Commission:General Services Administration.

Should governmental reorganizationoccur, relevant Federal agencies shallbe those with programs, activities, pro-jects or responsibilities in the fieldscited above. States should includeother Federal agencies as appropriateto their program development or im-plementation efforts.

(e) The term "Federal agencies prin-cipally affected" shall mean the sameas "relevant Federal agencies." TheAssistant Administrator may expandupon the term for purposes of review-ing the management program and en-vironmental impact statement.

(f) The term "Coastal State" meansa State of the United States in, or bor-dering on, the Atlantic, Pacific, orArctic Ocean, the Gulf of Mexico,Long Island Sound or one or more ofthe Great Lakes. Pursuant to section304(3) of the Act, the term also in-

eludes Puerto Rico, the Virgin Islands,Guam and American Samoa. Pursuantto section 703 of the Covenant to Es-tablish a Commonwealth of theNorthern Mariana Islands In PoliticalUnion with the United States of Amer-ica, the term also includes the North.ern Marianas.

(g) The following terms, as used Inthese regulations, have the same defi-nition as provided in section 304 of theAct.

(1) Coastal zone,(2) Coastal waters.(3) Estuary,(4) Land use,(5) Water use,(6) Management program.

§ 923.3 General requirements.(a) Requirement. In addition to the

specific requirements related to Indi-vidual elements of a State's coastalmanagement program (such as thoserelated to boundaries, areas of particu-lar concern, legal authorities, etc.), theapprovability of any State program,pursuant to section 306 of the Act, willbe determined by the Assistant Ad-ministrator in accordance with the fol-lowing general requirements:

(1) That the management programis comprehensive. It must address andprovide for the management of thosesignificant resources, uses and areasthat the State has determined,through Its development process andin consultation with all relevant inter-ests as required by the Act and theseregulations, make Its coastal zone aunique, vulnerable or valuable area re-quiring various forms of management

(2) That the policies, standards, ob-jectives and criteria upon which deci-sions purusant to the program will bebased are articulated clearly and aresufficiently specific to provide (I) aclear understanding of the content ofthe program, especially in Identifyingwho will be affected by the programand how, and (11) a clear sense of direc-tion and predictability for decisionmakers who must take actions pursu-ant to or consistent with the manage-ment program; and

(3) That there are sufficient policiesof an enforceable nature to insure theimplementation of and adherence tothe management program.

In addition to sufficient enforceablepolicies to constitute an approvableprogram, States may include policiesof an enhancement or horatorynature. (See discussion in paragraph(h) below.)

(b) Comment. Statutory Citation,Subsection 306(c)(1):

Prior to granting approval of a manage.ment program submitted by a coastal state,the Secretary shall find that: (1) the statehas developed and adopted a managementprogram for its coastal zone 0 0 * which Isadequate to carry out the purposes of thistitle and Is consistent with the policy de-clared in section 303 of this title.


S-8396


(c) Requirement In determining re-sources, uses and areas to besubject tothe management program and appro-priate management thereof, as articu-lated in the program's policies and im-plemented in the program's authori-ties, States shall take into consider-ation the findings of Sectioni 302 ofthe Act that led Congress to find a na-tional interest in providing for the ef-fective management of the Nation'scoastal resources. The Act emphasizesthat important ecological, cultural,historic and aesthetic values such asliving marine resources, wildlife habi-

-tats, public and open space, and nutri-ent rich areas are being lost or ad-versely affected by population growthand economic development in thecoastal zone. The Act clearly envisionsthat -such activities as populationgrowth and economic development willoccur in a manner that recognizes andreflects the findings of Sections 302 ofthe Act.

(d) Comment Statutory Citation,Section 303:

The Congress finds that-" (a) There is a national interest in the ef-fective management, beneficial use. protec-tion, and development of the coastal zone,

(b) The coastal zone is rich in a variety ofnatural, commercial, recreational. Industri-al, and esthetic resources of immediate andpotential value to the present and futurewell-being of the Nation;

(c) The increasing and competing de-mands upon the lands and waters of ourcoastal zone occasioned by populationgrowth and economic development, includ-ing requirements for industry, commerce,residential development, recreation, extrac-tion of mineral resources and fossil fuels,transportation and navigation, waste dispos-al, and harvesting of fish. shellfish, andother living marine resources, have resultedin the loss of living marine resources, wild-life, nutrient-rich areas, permanent and ad-verse changes to ecological systems, decreas-ing open space for public use, and shorelineerosion;

(d) The coastal zone, and the fish, shell-fish, other living marine resources, and wild-life therein, are ecologically fragile and con-sequently extremely vulnerable to destruc-tion by man's alterations;

(e) Important ecological, cultural, historic,and esthetic values in the coastal zonewhich are essential to the well-being of allcitizens are being Irretrievably damaged orlost;

(D Special natural and scenic characteris-tics are being damaged by ill-planned devel-opment that threatens these values;

(g) In light of competing demands and theurgent need to protect and to give high pri-ority to natural systems in the coastal zone,present state and local ifstitutional ar-rangements for planning and regulatingland and water uses in such areas are inad-equate: and

(h) The key to more effective protectionand use of the land and water resources ofthe coastal zone is to encourage the statesto exercise their full authority over thelands and waters in the coastal zone by as-sisting the states, in cooperation with Feder-al and local governments and other vitallyaffected interests, in developing land and

water use programs for the coastal zone, In-cluding unified policies. criteria, standards,methods, and processes for dealing withland and water use decisions of more thanlocal significance.

(i) The national objective of attaining agreater degree of energy self-sufficiencywould be advanced by providing Federal fi-nancial assistance to meet state and localneeds resulting from new or expandedenergy activity in or affecting the coastalzone.

(e) Comment Statutory Citation,Section 303:

The Congress finds and declares that it Isthe national policy (a) to preserve, protect,develop, and where possible, to restore orenhance the resources of the Nation's coast-al zone for this and succeeding generations,(b) to encourage and assist the states to ex-ercise effectively their responsibilities In thecoastal zone through the development andimplementation of management programsto achieve wise use of the land and water re-sources of the coastal zone giving full con-sideration to ecological, cultural, historic,and esthetic values as well as to needs foreconomic development, (c) for all Federalagencies engaged in programs affecting thecoastal zone to cooperate and participatewith state and local governments and re-gional agencies in effectuating the purposesof this title, and (d) to encourage the par-ticipation of the public, of Federal. stateand local governments and of regional agen-cies in the development of coastal zone man-agement programs. With respect to Imple-mentation of such management programs, Itis the national policy to encourage coopera-tion among the various state and regionalagencies including establishment of inter-state and regional agreements, cooperativeprocedures, and joint action particularly re-garding environmental problems.

(f) Requirement. Particular atten-tion shall be devoted to subsection303(b) of the Act which calls for (i)the ability to nianage coastal land andwater resources based on (ii) ecologi-cal, historical, cpitural, esthetic andeconomic considerations. It Is Impossi-ble to specify by regulation the rel-evant scope, priority and type of suchconsiderations for each coastal State,given significant differences in the bio-physical characteristics of the coastalzone, the quantity, quality and distri-bution of coastal resources locatedtherein and the uses of or conflictsover use of these diverse resources. Ata minimum, however, States shall in-clude three broad classes of policies intheir management program In order toprovide a framework for the exerciseof various management techniquesgoverning coastal resources, uses andareas:

(1) Resource policies are those di-rected toward the management andconservation of valuable or vulnerablecoastal resources such as wetlands,floodplains, estuaries, intertidal areas,beaches and dunes, barrier islands,cliffs and bluffs, other areas subject toerosion or accretion, areas containingfishery, spawning and harvestinggrounds, other wildlife habitats in-

cluding those of endangered species.and esthetic, cultural and historic re-sources.

(2) Coastal development policies arethose that address such matters asshorefront access, ports and harbors,energy facilities, coastal dependencyof large-scale industrial, commercial,residential and institutional develop-ments, mineral extraction, on-shoreOCS-related development; and

(3) Government process policies arethose which address such matters asthe roles and responsibilities of differ-ent levels of government, or clarifica-tion and simplification of regulatoryand permitting procedures.

(g) Comment State programs arenot required to contain policies ad-dressIng all resources, uses, or process-es potentially encompassed by thethree general categories above. Howev-er. the Assistant Administrator willreview management programs toensure that major coastal resources ofmore than local significance in a Stateand uses with direct ,and significantimpacts on coastal waters in that Stateare addressed by appropriate policiesin the program.

(h) Comment Some policies must beof an enforceable nature (as, for exam-ple, policies derived from regulatorystatutes) and others may be of an en-hancement nature (as, for example,policies that encourage or state prior-ities for certain activities in a certainmanner or area, or policies that in-volve- planning, financial, or technicalasistance), assuming there are suffi-cient enforceable policies to find theprogram approvable, Two hypotheti-cal examples follow of an enforceableand enhancement policy respectively:.

(1) It Is the policy of the State topreserve wetlands for their biologicalproductivity, habitat values, and stormbuffer functions. To this end, no activ-ity shall occur in a coastal wetlandwithout first receiving a permit fromagency X.

(2) It Is the policy of the State to en-courage location of new, coastal-de-pendent industries in areas alreadyserved by necessary and adequate in-frastructure such as roads and sewagetreatment facilities.

Whether policies must be enforce-able rather than encouragement de-pends on the nature of the concern.Generally, it should be anticipatedthat policies relating to resources willneed to be of an enforceable nature(as, for example, the ability to exercisepermit requirements). The AssistantAdministrator will determine that thescope and enforceability of a State'sprogram are adequate based on the en-forceable policies of the program.

(i) Comment With specific referenceto wetlands and floodplains located ina State's coastal zone, the AssistantAdministrator will review a State'smanagement program to see that it


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contains policies either directly ad-dressing appropriate uses of or incoastal floodplains and wetlands or ad-dressing acceptable and unacceptableimpacts in those areas. These policiesare deemed necessary in order thatthe Assistant Administrator may ful-fill his/her responsibilities pursuant toPresidential Executive Orders on wet-land and floodplains issued May 24,1977 which provide, with respect towetlands in relevant part, that:

(1) Each [Federal] agency shall provideleadership and take action to minimize thedestruction, loss or degradation of wetlands,and to preserve and enhance the naturaland beneficial values of wetlands, in carry-ing out the agency's responsibilities for * 0 *conducting Federal activities and programsaffecting land use, including but not limitedto water and related land resources plan-ning, regulating and licensing activities * * *

(5) In carrying out the activities describedin Section I of this Order, each agency shallconsider factors relevant to a proposal'seffect on the survival and quality of thewetlands. Among these factors are:

(a) public health, safety, and welfare, in-cluding water supply. quality, recharge anddischarge, pollution, flood and storm haz-ards, and sediment and erosion;

(b) maintenance of natural systems, in-cluding conservation and long term produc-tivity of existing flora and fauna, speciesand habitat diversity and stability, hydrolo-gic utility, fish, wildlife, timber, and floodand fiber resources, and

(c) other uses of wetlands in the public in-terest including recreational, scientific andcultural uses..

(j) Comment. With respect to flood-plains, the Presidential ExecutiveOrder provides in relevant part that:

(1) Each [Federal] agency shall provideleadership and shali take action to reducethe risk of flood loss. to minimize theimpact of floods on human safety, healthand welfare, and to restore and preserv6 thenatural and beneficial values served byfloodplains in carrying its responsibilitiesfor * 0 * conducting Federal activities andprograms affecting land use, including butnot limited to water and related land re-sources planning, regulating and licensingactivities.

(2) In carrying out the activities describedin Section (1) of this Order, each agency hasa responsibility * 0 to ensure that its-plan-ning programs and budget requests reflectconsideration of flood hazards and floodplain management * * *

(4) Each agency shall take floodplainmanagement into account when rormulat-ing or evaluating any water and land useplans and shall require land and water re-sources use appropriate to the degree ofhazard involved* ' *

(6) The term "floodplain"' shall mean thelowland and relatively flat areas adjoininginland and coastal waters including flood--prone areas of offshore islands, including ata minimum, that area subject to a one per-cent or greater chance of flooding in anygiven year.

(k) Comment. With respect to thedefinition of "floodplain" in (6) above,it is recognized that in some States,their coastal zone boundaries may notbe as extensive as the 100-year flood-

plain, nor do these boundaries neces-sarily have to include floodplains ad-joining inland waters. However, to theextent a State's coastal zone does in-clude floodplain areas as definedabove, policiqs affecting those areasmust be compatible with the intent ofthe Executive order.

Subpart B-Uses Sublect to Management

§ 923.10 General.This subpart deals with land and

water uses which, because of theirdirect and significant impacts oncoastal waters, are subject to theterms of the management program.Determination of these uses will assistin determining the appropriate coastalmanagement boundary. This subpartdeals in full with the requirements ofsubsection 305(b)(2), Uses Subject toManagement and 305(b)(8), EnergyFacility Planning, and deals in partwith the requirements of subsection306(e)(2), Uses of Regional Benefit.

§ 92311 Uses subject to management.(a) Requirement. The essential re-

quirements of this subpart are: (1) Todetermine and identify which usesshall be subject to the terms of themanagement program pursuant tosubsection 305(b)(2) of the Act.

(2) To establish the bases for poli-cies, management authorities, andtechniques that will govern whetherand how uses will be allowed, condi-tioned or denied; and

(3) To assure that these policies andauthorities incorporate a sufficientrange of considerations to address thenational findings and policies of sec-tions 302 and 303 of the Act.

(b) Comment. In order to meet therequirements of (a)(1) above, Statesshould inventory natural and man-made coastal resources and shouldanalyze the quality, location, distribu-tion and demand (including claimednational interests) for these resourcesas well as the need for and nature ofcoastal management. Assessments de-rived from these inventories and anal-yses should form one basis for deter-mining appropriate uses subject to themanagement program.

(c) Comment. In addition, Statesshould consider the potential fordirect and significant coastal impactson coastal waters from uses of lands,including, but not limited to, the fol-lowing:

(1) Residential and commercial de-velopments such as subdivisions, high-rise apartments or hotels, trailer parksand second-home developments, andshopping centers,

(2) Industrial developments, such astank farms and refineries, powerplants, manufacturing complexes, in-dustrial parks, onshore and offshoreport facilities, mineral and sand ex-traction operations; liquified natural

gas (ING) facilities, petrochemicalplants, and Outer Continental Shelf(OCS) development;

(3) Recreational facilities such asbeaches, amusement parks, marinasand other boating facilities;

(4) Public facilities and public workssuch as schools, hospitals, governmentbuildings, dams and water treatmentfacilities; and

(5) Transportation facilities such ashighways, railroads, airports, portsand harbors.

(d) Comment In determining if usesand their management are sufficientlycomprehensive, the Assistant Adminis-trator will consider whether signifi-cant coastal-related issues raised bythe public and/or governmental enti-ties during the course of program de-velopment or related to.the findingsand national policies of Sections 302and 303 of the Act.

§ 923.12 Use permissibility.(a) Requirement. In order to meet

the requirements of subsection305(b)(2) of the Act, and the associat-ed requirements of § 923.11(a)(2),States must develop policies and pro-cedures by which uses, determined tobe subject to the managment program,will be allowed, conditioned, modified,encouraged or prohibited. Policies andprocedures regarding management ofuses or their impacts must be capableof effective application at the time ofprogram approval.

(b) Comment. Statutory Citation,Subsection 305(b)(2):

The management program for each coast.al state shall include * * * (2) A definition ofwhat shall constitute permissible land usesand water uses Within the coastal zonewhich have a direct and significant Impacton the coastal water.

(c) Comment. The policies and pro-cedures called for in paragraph (a)above should be based on the follow-ing types of analyses: (1) Capabilityand suitability of resources types toaccommodate existing or projecteduses;

(2) Environmental impacts on coast-al resources;

(3) Compatability of various useswith adjacent uses or resources:

(4) Evaluation of inland and otherlocation alternatives;

(5) Water dependency of varioususes and other social and economicconsiderations.

(d) Comment. Management of usesbased on the policies and proceduresnoted in (a) above, including perfor-mance standards, shall take into ac-count the full range of considerationscalled for in Sections 302, 303 and307(f) of the Act. Examination of thefollowing representative factors is sug-gested:

(1) Air and water quality;(2) Historic, cultural and aesthetic

resources where coastal developmentis likely to affect these resources;


8398


(3) Open space or recreational usageof the shoreline where increasedaccess to the shorefront is a particu-larly important concern;

(4) Floral and faunal communitieswhere loss of living marine resourcesor threats to endangered or threat-ened coastal species are particularlyimportant concerns; and

(5). Water dependency of various ac-tivities and uses, including those relat-ed to- energy.(e) Comment. To the extent a State's

-management Drogram policies are gen-eralized, performance standards thatwill be used to enforce these policieswill need to be sufficiently explicit andspecific that persons affected by themanagement program will have a rea-sonable understanding of what useswould be permitted in which locationsof the coastal zone and under whatconditions. Further, while perfor-mance standards represent an accept-able procedure for managing uses,they do not substitute for the require-ment of § 923.11(a)(1) to identify usessubject to the management program.

923.13 Uses of regional benefit.(a) Requirement. In order to meet

the requirements of subsection306(e)(2) of the Act, State's must:(1) Identify what constitute uses of

regional benefit; and(2) Identify methods that will assure

that local land and water use regula-tions do not unreasonably restrict orexclude land and water uses of region-al benefit.

(b) Comment. Statutory Citation,Subsection 306(e)(2):

Prior to granting approval, the Secretary.shall also find that the program provides* 0 * (2) for a method of assuring that localland and water use regulations within thecoastal zone do not unreasonably restrict orexclude land and water uses of regionalbenefit.(c) Comment This section of the

regulations provides guidance on howStates may meet the requirements of(a)(1) above. Section 923.43 containscommentary addressing the require-ments of (a)(2) above.(d) Comment. States have a number

of options with respect to identifyinguses of regional benefit as required in(a)(1) above. These options include,but are not limited.to, thosb discussedin this paragraph. Whatever approacha State chooses, the basic-criteria foridentifying uses of regional benefitshould be two-fold: (1) Effect on morethan one -local unit of government(effect may be considered to be of amulti-county or intrastate nature),and (2) direct and significant impacton coastal waters. Using these criteria,States could identify those uses theyperceive will affect or produce someregional benefit in terms of providingservices or other benefits to citizens ofmore than one unit of local, general-

purpose government (excluding situa-tions such as cities and counties thatexercise jurisdiction over the samegeographic areas). Such activities asregional waste treatment plants,multi-county garbage disposal sites orlandfills, State highways, or multi.county parks and beaches might beidentified under this approach.

These same uses or other uses mightbe identified on the basis of plansadopted by areawide agencies desig-nated pursuant to section 204 of theDemonstration Cities and Metropoli-tan Developpaent Act of 1966, or as de-fined in other regional plans such asStatewide Comprehensive OutdoorRecreation Plans (SCORPs),Statewide transportation plans, or re-gional wastewater treatment plans(funded pursuant to section 208 of theFederal Water Pollution Control Act).Where States follow this approach,they should coordinate the require-ments of this section with those. of§ 923.56 having to do with plan coordi-nation.

As another approach, States maychoose to define uses of regional bene-fit to include facilities In which theremay be a national interest in theirplanning and siting. Under this ap-proach, such facilities as ports, high-ways, energy production and transmls-sion facilities, national seashores,parks and forests, and military basescould be identified as uses of regionalbenefit. (See § 923.52 which discussesconsideration of facilities in whichthere may he a national interest.)

(e) Comment Once uses of regionalbenefit have been Identified, Statesmust provide a method for assuringlocal regulations do not unreasonablyrestrict or exclude such uses. Accept-able alternatives for meeting this re-quirement are discussed In § 923.43 ofsubpart E-Authorities and Organiza-tion.

§ 923.14 Energy facility planning process.(a) Requirement. In order to meet

the requirements of subsection305(b)(8) of the.Act, States must de-velop a planning process which is ca-pable, at a minimum, of anticipatingand managing the impacts fromenergy facilities In or .affecting aState's c5astal zone. This process mustinclude the following elements:

(1) Identification of energy facilitieswhich are likely to locate in, or whichmay significantly affect, a State'scoastal zone;

(2) Procedures for assessing the suit-ability of sites for such facilities;

(3) Articulation of State policies formanaging energy facilities and theirimpacts, including a clear articulationof policies regarding conditions thatmay be imposed on site location andfacility development;

(4) Identification of how intereftedand affected public and private parties

may be involved in the planning pro-cess, and a discussion of the means forcontinued consideration of the nation-al interest, in the planning for andsiting of energy facilities that are nec-essary to meet more than local re-quirements, after program approval;

*and(5) Identification of legal authorities

and management tbchniques that willbe used to Implement State policiesand procedures.

(b) Comment. Statutory Citation,Subsection 305(b)(8) and (9):

The management program for each coast-al state shall Include 0 0 0 (8) A pLingprocess for energy facilities likely to be lo-cated in. or which may significantly affect.the coastal zone, including, but not limitedto. a process for anticipating and managingthe impacts from such facilities ' * '(9) Nomanagement program is required to meetthe requirements in paragraphs °

. (8)1 ° before October 1. 1978.

(1) The purpose of Identifyingenergy facilities which may signifi-cantly affect the coastal zone is toassure the consideration of energy fa-cilities as land or water uses likely tohave direct and significant impacts oncoastal resources and therefore sub-ject. to the management program.Since the specific planning processcalled for in this section is an integralpart of the requirements of this sub-part, many of the requirements con-tained in (a) (1) and (2) above can bemet by completing the work called forIn §J 923.11 and 923.12. The coordina-tion requirements In (a)(4) above canbe fulfilled in large measure throughadequate consultation . pursuant to§§ 923.51 and 923.55. Further, becauseof the obvious linkage between subsec-tions 305(b)8) of the Act having to dowith an energy facility planning pro-cess and 306(c)(8) having to do withconsideration of national interests in-volved in planning for and siting of fa-ciltles, including energy facilitieswhich may be more than local innature, States should coordinate ful-fillment of the requirements of thissection with those of § 923.52-Consid-eration of National Interests.

(c) Commen. Since one of the objec-tives of implementing State coastalmanagement programs is to bringabout a greater degree of predictabi-lity with respect to what may occur inwhich areas of the coastal zone, andsince many energy facilities are coast-al dependent and may cause substan-tial impacts on coastal resources andadjacent land and water uses, Statesare encouraged, through establish-ment of this planning process, to besite-specific, especially in indicatingareas that are appropriate or inappro-priate for particular types of energyfacilities. As a result of developing thisrequired planning process, Statesshould be able to specify the condi-tions that would either constrain or


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lead to the siting of particular energyfacilities in a State's coastal zone.

(d) Comment To determine whichenergy facilities may significantlyaffect the 'coastal zone, as required in(a)(1) above, States must consider, at aminimum, those facilities listed in sub-section 304(5) of the Act. These facili-ties include any equipment or facilitywhich will be used or expanded pri-marily (1) in the exploration for, orthe development, production, conver-sion, storage, transfer, processing, ortransportation of -any energy resource,or (2) for the manufacture, produc-tion, or assembly of equipment, ma-chinery, products or devices which areinvolved in any activity described in(1). This includes (i) electric generat-ing power plants, (ii) petroleum refin-eries and associated facilities, (Ill) gasi-fication plants, (iv) facilities used forthe transportation, conversion, treat-ment, transfer or storage of liquefiednatural gas, (v) uranium enrichmentor nuclear fuel processing facilities,(vi) oil and gas facilities, includingplatforms, assembly plants, storagedepots, tank farms, crew and supplybases and refining, complexes, (vii) fa-cilities, including deepwater ports, forthe transfer of petroleum, vii) pipe-lines and transmission facilities, andCix) terminals which are associatedwith the foregoing. States have theoption of expanding this list for plan-ning and management purposes to in-clude any related or secondary energyactivities, which a State feels may sig-nificantly affect its coastal zone.

(e) Comment At a minimum, "sig-nificantly affect" shall be defined interms of substantial or potentiallysubstantial changes in coastal zone re-sources which could be affected by aproposed energy facility. These in-clude changes in land, air, water, min-erals, flora, fauna, noise, and objectsof historic, cultural, archeological oraesthetic significance. States have theoption of using a more expansive defi-nition of "significantly affect" whichcould include any or all of the con-cepts in the National EnvironmentalPolicy Act of 1969 (Pub. L. 91-190, asamended). These concepts include thefollowing: (1) Effects which are note-worthy in an overall, cumulative way,considering .the impacts of a givenenergy facility and related facilities,either existing or contemplated; (2) ef-fects which may be positive, negativeor both; (3) effects which may comeabout or Increase in magnitude be-cause of the particular location of anenergy facility; and (4) effects whichcover a broad range of environmental,social and economic impacts.

(f) Comment In developing a proce-dure for assessing the suitability ofsites for energy facilities, as requiredin (a)(2) above, it will be important tocreate a planning process that takesadequate account of all the potential

changes noted in paragraph (e) of this'section, as well as any other economic,social or environmental factors theState chooses to consider significant.This procedure must also include a ca-pability to evaluate alternative sitesand to determine if a potential site isappropriate given these assessments.This assessment procedure should bedesigned to evaluate, to the extentpracticable, the costs and benefits ofproposed and alternative sites in termsof State and national interests as wellas local concerns.

(g) Comment In articulating Statepolicies and management 'techniques,as required in (a) (3) and (5) above,States should indicate whether it isState policy to permit, discourage orprohibit major classes of energy facili-ties (identified pursuant to (a)(1)above) in the coastal zone. If so, Statesshould articulate clearly any and allconditions that may be attached tositing, including, for example, condi-tions on site development or internal-ization of costs, where such conditionsexist as part of a State's energy facili-ty planning process or policies.

(h) Comment. In articulating Statepolicies and management techniquesas required in (a) (3) and (5) above,State coastal planning or managementagencies are encouraged to developthese in consultation and cooperationwith other State, local and Federalagencies. General consultation re-.quirements for program development,of which this consultation should beconsidered a part, are discussed morefully in § 923.51. Depending on the ap-proach taken to energy facilities man-agement, this consultation and coordi-nation should include, but need not belimited, to procedures for: (1) Assess-ing need/demand projections; (2) allo-cating these needs among coastal andinland locations; (3) identifying poten-tial coastal impacts; and (4) determin-ing site suitability of alternative loca-tions for particular facilities. Theactual.analysis of particular sites maybe accomplished using planning fundsauthorized under subsection 308(c) ofthe Act.

(I) Comment The nature of Statepolicies and management techniquesthat will be articulated as part of theoverall management program willvary, depending on the approachtaken to planning and management ofenergy facilities or their impacts, andthe extent and type of energy facilitysiting procedures and impact manage-ment techniques already existing in aparticular State. Accordingly, in meet-ing the requirements of § 923.41 to listrelevant constitutional provisions,laws, regulations, judicial decisionsand other appropriate official docu-ments or actions, States must includethose items specifically related toplanning for, anticipating and manag-ing energy facilities or impacts, includ-ing licensing or permitting procedures.

(j) Comment. In addressing the re-quirements of (a)(4) above, Statesshould identify clearly the organiza.tional structure and procedural meansby which energy facility planning (in-cluding decisions made pursuant tothat planning process) is carried out inthe State. This should include a dis-cussion of the respective roles of Stateagencies and their relationship to thelead agency and to the managementprogram's requirements (as well as therespective roles and opportunity forparticipation by Federal agencies,local governments, other interestedand affected public and private par-ties). Included in this discussionshould be an explanation of the pro-cess by which the national interest inthe planning for and siting of energyfacilities, identified pursuant to§ 923.52, can continue to be consideredafter program approval.

(k) Comment. State coastal zonemanagement programs that are sub-mitted and approved prior to October1, 1978, may submit this planning ele-ment as a program amendment by, butno later than, September 30, 1978, orthis element may be Included as partof the basic program submission sub-mitted and approved prior to October1, 1978. State coastal zone manage-ment programs submitted prior to Oc-tober 1, 1978, but approved on or afterthat date, must include this planningelement as part of the basic programsubmission. State coastal zone man.agement programs submitted for ap-proval after October 1, 1978, must in.clude this element as part of the basicprogram submission.

Subpart C-Special Management Areas

§ 923.20 General.(a) This subpart deals with areas

that are of particular concern becauseof their coastal-related values or char-acteristics, or because they may facepressures which require detailed atten-tion beyond a State's general planningand regulatory system as proposed Inthe management program. As a result,these areas require special manage-ment attention within the terms ofthe State's overall coastal program.This special management may includeregulatory or permit requirements ap-plicable only to the area of particularconcern. It also may include increasedintergovernmental coordination, tech-nical assistance, enhanced publio ex-penditures, or additional public ser-vices and maintenance to a designatedarea. This subpart deals with the fol-lowing interrelated subsections of theAct: 305(b)(3)-Geographic Areas 6fParticular Concern; 305(b)(5)-Guide-lines on Priorities of USes; 305(b) (7)-Shorefront Access and ProtectionPlanning; 305(b) (9)-Shoreline Ero-sion Planning; and 306(c) (0)-Areasfor Preservation and Restoration.



§ 923.21 Area; of particular concern.(a) Requirement. In order to meet

the requirements of subsections 305(b)(3) and (5) of the Act, States must:

(1) Designate geographic areas thatare of particular concern, on a genericor site-specific basis or both;

(2) Describe the nature of the con-cern and the basis on which designa-tions are made;

(3) Describe how the managementprogram addresses and resolves theconcerns for which areas are designat-ed; and

(4) Provide guidelines regarding pri-orities of uses in these areas, includingguidelines on uses of lowest priority.


The management program for each coast-al state shall Include * 0 0 (3) An Inventoryand designation of areas of particular con-cern within the coastal-zone.

(c) Comment The importance ofdesignating areas of particular con-cern for management purposes andthe number and type of areas thatshould be designated is directly relat-ed to the degree of comprehensivecontrols applied throughout a State'scoastal zone. Accordingly, where aState's general coastal managementpolicies and authorities are insuffi-cient to address the nature of a State'sconcern in a particular area or type ofarea, then designation of areas of par-ticular concern is especially importantsince that designation will includemore specific policies and authoritiesthat also will govern managementwithin those areas. Where a State'sgeneral coastal management policiesand authorities are broad and addressState and national concerns compre-hensively, relatively less emphasisneed be placed on designation of areasof particular concern. Attention is in-vited to § 923.23 which discukses dddi-tional designations States may makebeyond those required by this section.

(d) Comment Designation.(1) In developing the criteria for des-

ignating areas of particular concernand in making the designations, Statesshall inventory their natural and man-made coastal zone resources and shallconsider whether the following repre-sent areas of concern requiring specialmanagement:

(i) Areas of unique, scarce, fragile orvulnerable natural habitat, unique offragile, physical, figuration (as, for ex-ample, Niagara Falls), historical sig-nificance, cultural value or scenic im-portance (including resources on or de-termined to be eligible for the Nation-al Register of Historic Places.)

(ii) Areas of high natural productiv-ity or essential habitat for living re-sources, including fish, wildlife and en-db.ngered species and the various tro-phic levels in the food web critical totheir well-being.

(ll) Areas of substantial recreationalvalue and/or opportunity;

(iv) Areas where developments andfacilities are dependent upon the utili-zation of, or access to, coastal waters;

(v) Areas of unique hydrologic, geo-logic or topographic significance forindustrial or commercial developmentor for dredge spoil disposal;* (vi) Areas of urban concentration

where shoreline utilization and wateruses are highly competitive;

(vii) Areas of significant hazard ifdeveloped, due to storms, slides,floods, erosion, settlement, and saltwater intrusion;

(viii) Areas needed to protect, main-tain or replenish cpastal lands or re-sources including coastal flood plains,aquifers and their recharge areas, es-tuaries, sand dunes, coral and otherreefs, beaches, offshore sand deposits,and mangrove stands.

(2) Designation does not necessarilyrequire specific gubernatorial or legis-lative action. Such action is necessaryonly to the extent the appropriatemanagement of designated areascannot be assured without such action.

(3) Designations may be generic (Le.,by type of area such as all wetlands, orall port areas) or they may be site-spe-cific (as for example historic area x incounty y) or they may be both. Irre-spective of whether these designationsare generic or site-specific, States mustindicate the nature of the concern.This will accomplish two purposes: (I)indicate why areas or types of areashave been selected for special manage-ment attention and (i) provide a basisfor articulating appropriate manage-ment policies and use guidelines.

(4) Once designated, areas of par-ticular concern must be Identified bylocation (if site specific) or category ofcoastal resources (if generic) in suffi-cient detail that affected landowners,governmental entities and the publiccan determine with reasonable certain-ty if a given area is or is not designat-ed. Maps that indicate the location ofdesignated areas or types of areas areencouraged as part or a State's pro-gram submission.

(5) Some States may wish to involvelocal governments, other State agen-cies, Federal agencies and/or thepublic in the process of designatingareas of particular concern. Such ef-forts are encouraged. In these cases,the State shall establish guidelines re-garding the purposes, criteria and pro-cedures for nomination and selectionof such areas.

§ 923.22 Priorities of uses.(a) Requirement. At a minimum, pri-

ority of use guidelines, including usesof lowest priority, must be establishedfor areas of particular concern desig-nated pursuant to § 923.21. States mayestablish priority use guidelines thatapply throughout the coastal zone and

are incouraged to do so, especially asan aid to resolving use conflicts.


The management program for each coast-al state shall include *.* " (5) Broad guide-lines on priorities of uses In particular areas,including specifically those uses of lowestpriority.

(c) Comment Within areas of par-ticular concern there are three mainpurposes of the guidelines on priorityof uses will serve:

(i) To provide a basis for specialmanagement in areas of particularconcern;

(H1) To provide a common referencepoint for resolving conflicts, and

(ill) To articulate further the natureof the interests to be promoted, pro-hibited or managed as a result of des-Ignation.

(d) Comment One of the purposes inproviding guidelines regarding uses oflowest priority in a specific, area or fora specific type of area Is to guide reso-lution of conflicts when two or moreuses are competing for the same area.Where States are concerned aboutprohibiting or strictly controlling par-ticular uses or types of uses in areas ofparticular concern, such uses shouldnot be listed as uses of lowest prioritybut should be separately prohibited orrestricted.

(e) Comment. Another purpose ofpriority use guidelines is to expressthe State's management concerns andpolicies on how resources should beprotected and/or developed. When anIdentified use is determined to be oflowest priority in a geographic area,based on the results of resource inven-tories and analyses, program policiesand other controls should be used toguide such uses to areas where the usewill be more compatible with resourcecapability and suitability, and conse-quently will receive a higher priority.

(f Comment. As with other guide-lines of this general type, guidelinesfor priority of uses need not be deter-minative in all cases. However, theyshould be regarded as strongly adviso-ry to decision makers carrying out themanagement program and the en-forceable policies therein and mayprovide the basis for legal challenge toactions taken inconsistent with theguidelines.

§923.23 Other areas of particular con-cern.

(a) In addition to the designation ofareas of particular concern requiredby § 923.21, States also may designatetwo other types of special manage-ment areas.

(1) One type comprises specific areasthat are known to require additionalor special management (e.g., urban wa-terfronts) but for which additionalmanagement techniques have not beendeveloped or necessary authorities

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY,, MARCH 1, 1978

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IRULES'AUDI REGULATIONS

have not been established at the timeof program approval. For this categoryof areas of particular concern it is as-sumed that the appropriate manage-ment techniques, that meet all the re-quirements of § 923.21(a) above, will bedeveloped during program implemen-tation. If States designate areas ofparticular concern of this type, the As-sistant Administrator will review thedesignations to determine that thereason for designation has been clear-ly stated, that a reasonable time frameand procedure have been establishedfor developing and implementing ap-propriate management techniques,and that an agency (or agencies) capa-ble of formulating the necessary man-agement policies and techniques hasbeen identified.

(2) The second type consists of aprocess for future designation of areasof particular concern after programapproval. Establishment of such a pro-cess recognizes the evolving nature ofmanagement programs and the desir-ability of establishing a mechanism toaddress areas which may become afocus of State concern in the future.States that wish to establish a processfor designating future areas of par-ticular concern, that may be otherthan areas for preservation or restora-tion which are discussed on § 923.24below, shall describe the criteria andprocedures by which such designationscan be made.

§923.24 Areas for preservation or restora-tion.

(a) Requirement. To meet the re-quirements of subsection 306(c)(9) ofthe Act, States must:

(1) Describe the criteria by whichareas can be designated for the pur-pose of preserving or restoring themfor their conservation, recreational,ecological or esthetic values; and

(2) Describe the procedures bywhich such designations can be made.

(b) Comment. Statutory Citation,subsection 306(c)(9):

Prior to granting approval of a manage-ment program submitted by a coastal state,the Secretary shall find that * 0 (9) Themanagement program makes provisions forprocedures whereby specific areas may bedesignated for the purpose of preserving orrestoring them for their conservation, recre-ational, ecological or esthetic values.

(c) Comment States that wish to es-tablish a process for designatingfuture areas of particular concern,that may be other than areas for pres-ervation or restoration, shall describethe criteria and procedures by whichsuch designations for other purposescan be made.

§ 923.25 Shorefront access and protectionplanning.

(a) Requirement. In order to meetthe requirements of subsection305(b)(7) of the Act and to coordinate

these requirements with those of sub-sections 305(b)(3) and 306(c)(9), Statesmust develop a planning process thatcan Identify public shorefront areasappropriate for access or protection.This process must include:

(1) A procedure for assessing publicareas requiring access or protection;

(2) A definition of the term "beach"and an Identification of public areasmeeting that definition;

(3) Articulation of enforceable Statepolicies pertaining to shorefrontaccess and protection;

(4) A method for designating shore-front areas (either as a class or sitespecifically) as areas of particular con-cern or areas for preservation or resto-ration, if appropriate; and

(5) An identification of legal au-thorities, funding programs and othertechniques that can be used to meetmanagement needs.

(b) Comment. Statutory Citation-Subsection 305(b)(7):

The management program for each coast-al state shall include * * * (7) A definition ofthe term "beach" and a planning process forthe protection of, and access to, publicbeaches and other public coastal areas ofenvironmental, recreational, historical, es-thetic, ecological or cultural value.

(1) The basic purpose in focusingspecial planning attention on shore-front access and protection is to ex-press more than local concern with re-spect to additional access or protectionneeds for public beaches and otherpublic coastal areas of environmental,recreational, historic, esthetic, ecologi-cal or cultural value and to includethese areas for special management at-tention within the purview of theState's management program. If ap-propriate, this special management at-tention may be achieved by designa-tion of public shorefront areas requir-ing additional access or protection asareas of particular concern or areasfor preservation or restoration. Sincethe specific planning requirementscalled for in this section are closely re-lated to the broader requirements forareas of particular concern and areasfor preservation and restoration, manyof the requirements called for in para-graph (a) above can be met by com-pleting the work called for in §§ 923.21and 923.24.(c) Comment. In meeting the re-

quirements of (a)(1) above, Statesshould take the following into ac-count:

(1) States should make use of theanalyses and considerations ofStatewide concern developed to meetthe requirements of §923.21 dealingwith areas of particular concern. Italso is recommended that informationcontained in State Outdoor Compre-hensive Recreation Plans be consid-ered.

(2) If islands are not consideredareas of particular concern, in the con-

text provided by § 923.21, then theirprotection needs should be addressedthrough this planning process. Analy-sis of the need and priority for protec-tion will be useful in establishing eligl-bity for such funds as may be avail-able for islands acquisition pursuantto subsection 315(2) of the Act.

(3) In developing a procedure forIdentifying access and protectionneeds, States should analyze (a) thesupply of existing public facilities andareas, (b) the anticipated demand forfuture use of these facilities, and ()the capability and suitability of exist-ing areas to support increased access.Based on these and other consider-ations, as appropriate, the State'splanning process shall include a de-scription of appropriate types ofaccess and protection, taking into ac-count governmental and public prefer-ences, resource capabilities and prior-ities.

(4) In determining access require-ments, States should consider bothphysical and visual access. The empha-sis, however, should be on the provi-sion of Increased physical access. Spe-cial attention should be given to recre-ational needs of urban residents for in-creased shorefront access. Physicalaccess may include, but need not belimited to, footpaths, bikepaths,boardwalks, jitneys, rickshaws, park-ing facilities, ferry services and otherpublic transport. Visual access may In-volve, but need not be limited to, view-points, setback lines, building heightrestrictions, and light requirements.

(5) In determining the needs for pro-tection of public coastal areas, Statesshould consider such factors as (a) en-vironmental, esthetic or ecologicalpreservation (including protectionfrom overuse and mitigation of erosionor natural hazards), (b) protection forpublic use benefits (including recre-ationalb historic or cultural uses), (c)preservation of Islands, and (d) suchother protection as may be necessaryto Insure the maintenance of environ-mental, recreational, historic, esthetic,ecological or cultural values of exist-Ing public shorefront attractions. Ex-isting public shorefront attractionsmay be broadly construed to include,but need not be limited to: public re-creation areas, scenic natural areas,threatened or endangered floral orfaunal habitat, wetlands, bluffs, his-toric, cultural or archaeological arti-facts, and urban waterfronts.

(d) Comment. With respect to the re-quirements of (a)(2) above, the pur-pose of defining the term "beach" is toaid in the Identification of those exist-ing public beach areas requiring fur-ther access and/or protection as a partof the State's management program.States should define "beach" in termsof characteristic physical elements(e.g., submerged lands, tidelands, fore-shore, dry sand area, line of vegeta-


tion, dunes) or in terms of public char-acteristics (e.g., local, State or Federalownership, or other demonstratedpublic interest such as easements,leases, licenses, or traditional and ha-bitual usage). At a minimum, the defi-nition of what constitutes a publicbeach shall be as broad as that- al-

'lowed under existing State law or con-stitutional provisions. States shouldtake into account special features suchas composition (e.g., nonsand beaches),location (e.g., urban or riverine beach--es), origin (e.g., manmade beaches)and fragility (e.g., areas of shiftingdunes). Where access may be compli-cated by questions of ownership anduse of the foreshore or dry sandbeach, States are encouraged to definebeach in terms of its component parts,especially at the mean high tide line,or the ordinary high water mark inthe Great Lakes. Finally, in definingthe term "beach," States should pro-vide a rationale explaining the rela-tionship between the definition devel-oped and access and protection needs.

(e) Comment With respect to the re-quirements of (a)(5) above, Statesshould develop a procedure which willallow for the eventual identification ofspecific areas for which provision ofaccess through acquisition will be ap-propriate during program implementa-tion. In developing this procedure,States shall identify local, State orFederal sources for accomplishing par-ticular access proposals. Particular at-tention should be given to coordina-tion of management objectives Fithfunding programs pursuant to subsec-tion 315(2) of the Act, and pursuant tothe Land and Water ConservationFund (16 U.S.C. 460 et seq.) and otherstatutes as may be appropriate. Theaccess referred to in this subsection isbroader than the types of access thatmay be acquired using subsection315(2) funds which is limited to the ac-quisition of lands or interests in landsfor purposes of providing access topublic shorefront or for the preserva-tion of islands.

(f) Comment State coastal zonemanagement programs that are sub-mitted and approved prior to October1, 1978, may submit this planning ele-ment as a program amendment by, butno later than, September 30, 1978, orthis element may be included as partof the basic program submission sub-mitted and approved prior to October1, 1978. State coastal zone manage-ment programs submitted prior to Oc-tober 1, 1978, but approved on or afterthat date, must include this planningelement as part of the basic programsubmission. State coastal zone man-agement programs submitted for ap-proval after October 1, 1978, must in-lude this element as part of the basic

program submission.


§ 923.26 Shoreline erosion/mitigationplanning.

(a) Requirement. In order to meetthe requirements of subsection305(b)(9) of the Act and to coordinatethese requirements with those of sub-sections 305(b)(3) and 306(c)(9), Statesmust include a planning process thatcan assess the effects of shoreline ero-sion. Evaluation must include assess-ment of ways to mitigate, control orrestore areas adversely affected by,erosion. This process must include:

(1) A method for assessing the ef-fects of shoreline erosion;

(2) Articulation ot State policies per-taining to erosion, including policiesregarding preferences for non-struc-tural, structural and/or no controls;

(3) A method for designating areasfor erosion control, mitigation and/orrestoration as areas of particular con-cern or areas for preservation and res-toration, if appropriate;

(4) Procedures for managing the ef-fects of erosion, including non-struc-tural procedures; and

(5) An Identification of legal au-thorities, funding programs and othertechniques that can be used to meetmanagement needs.


The management program for each coast-al state shall include ° 0 ° (9) A planningprocess for (A) assessing the effects of shor-eline erosion (however caused), and (B)studying and evaluating ways to control, orlessen the impact of, such erosion, and to re-store areas adversely affected by such ero-sion.

(1) The basic purpose in developinga process to evaluate and, if appropri-ate, to control and mitigate shorelineerosion is to assure consideration oferosion impacts within the purview ofa State's management program. Sincethe specific planning requirementscalled for in this section are closely re-lated to the broader requirements ofareas of particular concern and areasfor preservation and restoration, manyof the requirements called for In para-graph (a) above can be met by com-pleting the work called for in §§ 923.21and 923.24.

(c) Comment. With respect to the re-quirements of (a)(1) above. Statesshould consider the following: (1) Lossof land along the shoreline or alongestuarine banks, whether this loss iscaused by actions of man or by naturalforces, and whether these actions areregularly occurring, cyclical, or one-time events; and (2) the cause of theseeffects (e.g., manmade vs. naturalforces), the effects of erosion on adja-cent land and water uses as well as theimpacts of mitigation or restoration oferoded areas on adjacent shorelines,littoral drift, and other natural eco-logical processes such as accretion.

The purpose of such assessmentswill be to determine how, If at all,

8403

States wfl want to handle erosion con-trol, mitigation and/or restoration.

(d) Comment. In addressing the re-quirements of (a)(2) above, Statesshould consider non-structural andstructural options as well as the possi-bility of allowing erosion and accretionto continue to occur without .manage-ment Intervention. It is not the intentof these planning requirements toImply that an appropriate State re-sponse to erosion necessarily requirescontrol (either of a structural or non-structural nature). In some locationsalong a State's coast, it may be appro-priate to articulate a policy of non-control, given the cause of erosion, theconfiguration of the coastline or theadverse impacts that may result fromcontrol techniques. -An example ofwhere a policy of non-control may beappropriate is along barrier islandswhere there is substantial natural ero-sion and accretion due to littoral drift.In cases where State policy is not tocontrol erosion, either in selected loca-tions or along the entire coastline, therationale for such policy should bestated explicitly. In evaluating ways tocontrol or lessen erosion impacts,either through non-structural or struc-tural techniques, States should takeinto account such considerations asshoreline configuration, extent of theproblem, costs of alternative solutions,and incorporation of existing manage-ment techniques. States also shouldtake particular account of the Nation-al Flood Insurance Program (24 CFR1909 et seq.), and regulations of theFederal Insurance Administration onflood-related erosion-prone areas (24CFR 910.5).

(e) Comment. In addressing the re-quirements of (a)(3) above with re-spect to areas for preservation or res-toration. States may consider com-plete re-establishment of the pre-ero-slon shoreline or other more limitedrebuilding of an eroded area- Bothnatural and developed areas may beconsidered for restoration purposes.Due to restrictions on the use of sec-tion 306 funds (see § 923.95), not allmeans of restoration proposed byStates may be eligible for section 306funding, or funding under other sec-tions of the Act. Despite this restric-tion on the use of section 306 funds,States should not feel restricted as tothe means of restoration proposed aspart of the management program andshould give particular attention to co-ordination of shoreline erosion man-agement objectives with funding pro-grams pursuant to the US. ArmyCorps of Engineers Beach ErosionControl Program (33 U.S.C. 426 etseq.) and the Hurricane ProtectionProgram (33 U.S.C. 701 et seq.) andother statutes as may be appropriate.

(f) Comment. State coastal zonemanagement programs that are sub-mitted and approved prior to October



1, 1978, may submit this planning ele-ment as a program amendment by, butno later than, September 30, 1978, orthis element may be included as partof the basic program submission sub-mitted and approved prior to October1, 1978. State coastal zone manage-ment programs submitted prior to Oc-tober 1, 1978, but approved on or afterthat date, must include this planningelement as part of the basic programsubmission. State coastal zone man-agement programs submitted for ap-proval after October 1, 1978, must in-elude this element as part of the basicprogram submission.

Subpart D-Boundaries

§ 923.30 General.(a) There are four elements to a

State's boundary The inland bound-ary, the seaward boundary, areas ex-cluded from the boundary, and, inmost cases, interstate boundaries. Spe-cific requirements with respect to pro-cedures for determining these bound-aries, and means for identifying theseboundaries are discussed in the sec-tions of this subpart that follow.


The management program for each coast-al state shall include 0 0 * (1) An identifica-tion of the boundaries of the coastal zonesubject to the management program.

(c) Comment. Statutory Citation,Subsection 304(1):

The term "coastal zone" means the coast-al waters (including the lands therein andthereunder), and the adjacent shorelands(including the waters therein and thereun.der), strongly influenced by each other inproximity to the shorelines of the severalcoastal states, and includes islands, transi-fional and intertidal areas, salt marshes,wetlands, and beaches. The zone extends, inGreat Lakes waters, to the internationalboundary between the United States andCanada and, in other areas, seaward to theouter limit of the United States territorialsea. The zone extends Inland from the shor-elines only to the extent necessary to con-trol shorelands, the uses of which have adirect and significant impact on the coastalwaters. Excluded from the coastal zone arelands the use of which Is by law subjectsolely to the discretion of or which, is heldin trust by the Federal Government, its offi-cers or agents.

(d) Comment. Statutory Citation,Subsection 304(2):

The term "coastal waters" means (A) inthe Great Lakes area, the waters within theterritorial jurisdiction of the United Statesconsisting of the Great Lakes, their con.necting waters, harbors, roadsteads, and es-tuary-type areas such as bays, shallows andmarshes, and (B) In other areas, thosewaters adjacent to shorelines which containa measurable quantity or percentage ofseawater, including but not limited to,sounds, bays, lagoons, bayous, ponds and es-tuaries.

§ 923.31 Inland boundaries.(a) Requirement. The inland bound-

ary of a State's coastal managementarea must include:

(1) Those areas the management ofwhich is necessary novz or is likely tobe necessary in the near future to con-trol uses which have direct and signifi-cant impacts on coastal waters, pursu-ant to § 923.11 of these regulations;

(2) Those special management areasidentified pursuant to § 923.21;

(3) Transitional and intertidalareas-Areas subject to periodic or oc-casional inundation by tides, as, forexample, coastal floodllains, stormsurge areas, tsunami and hurricanezones, or washover channels.

(4) Salt marshes and wetlands-Areas subject to regular inundation oftidal salt (or Great Lakes) waterswhich contain marsh flora typical ofthe region.

(5) Islands-Bodies of land surround-ed by water on all sides. In the case ofPuerto Rico, the U.S. Virgin Islands,Hawaii, Guam, American Samoa andthe Northern Marianas interior por-tions of the major island(s) may be ex-cluded if uses of these lands do notcause direct and significant impacts oncoastal waters.

(6) Beaches-The area affected bywave action directly from the sea. Ex-amples are sandy beaches and rockyareas usually to a vegetation line.

(b) Comment. While the above ele-ments represent the minimum areathat mustbe included in a State'slandward coastal management bound-ary, a State also may include the fol-lowing within the management area:

(1) Watersheds-A State may deter-mine some uses within entire water-sheds have direct and significant'impact on coastal waters. In such casesit would be appropriate to define thecoastal zone as including these water-sheds. However, while it is clear thatlarge rivers can have a substantialeffect on coastal waters, taken to itslogical conclusion, this also couldmean vast areas of the interior mighthave to be included in the coastalzone. Therefore, along major rivers,such as the Mississippi, the Suseque-hanna, the Hudson, the Columbia andthe Sacramento, the coastal zone needextend upstream only to the point ofidentified average salt water intrusion,although States may delineate bound-aries above this point if they can dem-onstrate that uses can or do occur thathave direct and significant impacts oncoastal waters and, therefore, requiremanagement as part of a State's pro-gram.

(2) Waters under saline influence-Waters containing a significant quan-tity of seawater as defined by and uni-formly applied by the State, must beinclided in the coastal boundaries.Areas of tidal influence that extendfurther inland, particularly in estu-

aries, deltas and rivers, may be Includ-ed if uses further inland could havedirect and significant impacts oncoastal waters.

(3) Indian lands not held in trust bythe Federal Government. Becausesuch lands often are interspersed withtrust lands (which must be excludedfrom the management area), it may bedifficult to develop a discrete manage-ment program for non-trust landsalone. Moreover, in some cases, be-cause of longstanding jurisdictionaldisputes, it often may be difficult todetermine which lands are trust landsand which are non-trust lands, Accord-ingly, States have the option of Includ-ing or excluding non-trust lands fromthe management program. . (See§ 923.33(e) regarding tribal participa-tion in coastal management,)

(c) Comment. Urban areas. In manyurban areas or where the shorelinehas been modified extensively, naturalsystem relationships between land andwater may be extremely difficult, Ifnot impossible, to define in terms of"direct and significant Impacts." 'Iwoimpacts that States should consider ascausing direct and significant Impactsin urban areas are those resultingfrom sewage discharges and urbanrunoff into coastal waters. In addition,States should consider dependency ofuses on water access, or visual rela-tionships as factors appropriate forthe determination of the Inland urbanboundary. While inland boundaries Inurban areas may be more limited thanin more natural, less developed por-tions of a State's coastal zone, howmuch more limited this boundary maybe will depend on the extent of devel-opment or alteration, the nature ofcoastal-related Issues of significance inurban areas, and the number, natureand location of water dependent orwater-impacting uses in close proxim-ity to the water.

(d) Comment. Direct and significantimpacts.

(1) The purpose of determining"direct and significant Impacts" oncoastal waters is to assist in a determi-nation of uses subject to the manage-ment program and thereby includedwithin the management boundaries.

(2) Certain uses may cause directand significant Impacts only in termsof water or air quality Impacts. Howev-er, once such uses have been Identi-fied, their management should bebased on the comprehensive policies ofthe program which will address morethan just air and water quality consid-erations.

(3) While the substantive definitionof direct and significant impact is amatter for each State to establish, theAssociate Administrator will reviewthis definition in terms of the methodused to analyze various land and wateruses and their Impacts on coastalwaters.


8404


(e) Requirement The inland bound-ary must be described in a mannerwhich is sufficiently clear and exact toenable persons to determine whetherproperty they use or an activity theypropose to undertake is or Is not locat-ed in the area subject to management.Whether this description should be innarrative form or graphically depictedin the management program docu-ment depends on (i) the nature of theboundary and (ii) whether it is possi-ble to determine if a use or an area iswithin the coastal zone within a rea-sonable period of time. "Reasonableperiod of time" means that Statesmust be able to advise interested par-ties whether they are subject to theterms of the management programwithin, at a maximum, 30 days of re-ceipt of an inquiry. States should en-deavor to respond to inquiries within ashorter 'time period in order not tocause unnecessary uncertainty for af-fected parties.

(f Comment The primary purposein defining the coastal zone boundaryis to assist coastal residents and prop-erty owners, resource users and gov-ernmental entities to understand thegeographic scope of the managementprogram and to assist them in deter-mining whether, where and how theyare affected by the program. Accord-ingly, it is anticipated that the pro-gram submission should contain maps,charts or other graphics appropriateto understanding the provisions andgeographic scope of the managementprogram.

(g), Comment. An inland coastal zoneboundary defined in terms of politicaljurisdiction (e.g., county, township ormunicipal lines) cultural features (e.g.,highways, railroads), planning areas(e.g., regional agency jurisdictions,census enumeration districts), or a uni-form setback line is acceptable pro-vided that such boundary includes thebeaches, wetlands, islands, transitionaland intertidal areas cited in para-graphs (a)(3)-(6) above plus those usesidentified pursuant to section 923.11and those areas identified pursuant tosection 923.21.

§ 923.32 Seaward boundaries.(a) Requirement- The seaward

boundary is clearly defined in the Act.For States adjoining the Great Lakes,the seaward boundary is the interna-tional boundary with Canada or theboundaries with adjacent States. Forall other States participating-in theprogram, the seaward boundary is thethree mile outer limit of the UnitedStates territorial sea. The requirementcan be met by a simple restatement ofthe limits defined in this section.

(b) Comment. The seaward limits asdefined in this section are for purposesof this program only and representthe area within which the State'smanagement program may be autho-

rized and financed. These limits are ir-respective of any other claims Statesmay have by virtue of the SubmergedLands Act or any changes that mayoccur as a result of the Fisheries Con-servation and lanagement Act of1976.

(c) Comment The seaward limitsneed not be defined in any more pre-cise manner than that stated aboveprovided that there are no water areaswhich immediately require a moreexact delineation because of site spe-cific policies associated with theseareas. Examples of what would consti-tute critical areas that would requiremore precise delineation include, butare not limited to, those areas where aState specifically encourages or condi-tions construction of a monobuoyldes-ignates marine sanctuaries, protectedresource habitats or preserves; re-serves corridors for pipelines;, or re-serves areas for siting of off-shore is-lands or other structures.

(d) Comment. Lateral seawardboundaries. States shall use the samelateral seaward boundaries to the limitof the United States territorial seaused in the extension of such bound-aries for purposes of the CoastalEnergy Impact Program (CEIP) pursu-ant to Subpart H of 15 CFR 931.80 etseq. The lateral boundaries need notbe mapped unless there are waterareas along these boundaries which re-quire delineation because of site spe-clfic policies associated with theseareas. In the. event no agreementexists regarding the State's lateral sea-ward boundary at the time of programsubmission, States should indicate thestatus of lateral seaward boundary ne-gotiations pursuant to 15 CFR 931.82.

§ 923.33 Excluded lands.(a) Irquirement States must ex-

clude from their coastal managementzone those lands owned, leased, held intrust or whose use is otherwise by lawsubject solely to the discretion of theFederal Government, Its officers oragents. To meet this requirement,States must describe or map lands ortypes of lands owned, leased, held intrust or otherwise used solely by Fed-eral agencies. The intent of this re-quirement is not to list or map everymilitary base which Is physically locat-ed in, but legally excluded from, aState's coastal zone but rather to indi-cate the large-scale holdings and typesof lands excluded. Accordingly a Statemay simply declare that, for example,all Department of Defense lands incounties x, y and z are excluded.

(b) Comment Where Federal agen-cies have provided information regard-ing the location of excluded lands,these should be listed, usually as anappendix or attachment to the man-agement program. It will not alwaysbe necessary or appropriate to listthese lands in the format or detail pro-

vided by the Federal agencies. If Fed-eral agencies have not provided suffi-cient information or detail regardinglands that should be excluded. Statesmay rely on such other Information asthey may be able to obtain.

(c) Comment. The exclusion of Fed-eral lands does not remove Federalagencies from the obligation of com-plying with the consistency provisionsof section 307 of the Act when Federalactions on these excluded lands havespillover impacts that significantlyaffect coastal zone areas, uses or re-sources within the purview of a State'smanagement program. Therefore,States should consider mapping thefollowing types of excluded Federallands. (I) Large-scale holdings (of 100or more acres), especially those thatmay have spillover effects;, (i) landsnear special management areas;, and(iI) lands that may be declared sur-plus or excess in the near future, espe-cially those for which the State hasreuse priorities or policies.

(d) Comment. In excluding Federallands from a State's coastal zone forthe purposes of this Act, a State doesnot impair in any way any rights orauthorities that It may have over Fed-eral lands that exist separate fromthis program.

(e) Comment Indian lands. WhileIndian lands held in trust by the Fed-eral government must be excludedfrom a State's coastal zone, by defini-tion in the Act, and while alienated (ornontrust) lands may be excluded froma State's program, it is not intendedthat such exclusions should detertribes along coastal shorelines fromdeveloping and administering soundcoastal management practices. Wiseuse and management of tribal landand water resources would comple-ment State management efforts andwould further the national objectivesof the Act. Accordingly, tribal partici-pation In coastal management effortsshall be supported and encouragedprovided that such efforts are com-patible with a State's coastal manage-ment policies and are in furtheranceof the national policies of section 303of the Act. CFor further guidance ontribal participation in coastal manage-ment activities, see § 923.93(e).)

§ 923.34 Interstate boundaries.While it is not required that inland

coastal management boundaries ofcontiguous States be coterminous,States must Indicate that there hasbeen consultation with adjoiningcoastal States during the program de-velopment process to manage acommon resource compatibly or tominimize the possibility of hicompati-ble uses occurring at the juncture ofeach StAte's boundary.


8405


Subpart E-Authorities and Organization

§ 923.40 General.(a) The authorities and organiza-

tional structure on which a State willrely to administer its managementprogram are the crucial underpinningsfor enforcing the policies which guidethe management of the uses and areasIdentified according to the previoussubparts. There is a direct relationshipbetween the adequacy of authoritiesand the adequacy of the overall pro-gram. The authorities need to bebroad enough in both geographicscope and subject matter to ensure im-plementation of the State's enforce-able policies. These enforceable poli-cies must be sufficiently comprehen-sive and specific to regulate land andwater uses, control development, andresolve conflicts among competinguses in order to assure wise use of thecoastal zone. (Issues relating to theadequate scope of the program aredealt with in § 923.3.)

(b) The entity or entities which willexercise the program's authorities re-quired above is a matter of State de-termination. They may be the Stateagency designated pursuant to section306(c)(5) of the Act, other State agen-cies, regional or interstate bodies, andlocal governments. The major approv-al criterion is a determination thatsuch entity or entities are required toexercise their authorities in confor-mance with the policies of the man-agement program. Accordingly, the es-sential requirement is that the Statedemonstrate that there is a means ofensuring such compliance. This dem-onstration will be in the context ofone or a combination of the three con-trol techniques specified in section306(e)(1) of the Act and as further de-scribed in section 923.42 below.

(c) In determining the adequacy ofthe authorities and organization of aState's program, the Assistant Admin-istrator will review and evaluate au-thorities and organizational arrange-ments in light of the requirements ofthis subpart and the finding of section302(g) of the Act, which provides:

In light of competing demands and theurgent need to protect and to give high pri-ority to natural systems in the coastal zone,present State and local institutional ar-rangements for planning and regulatingland and water uses in such areas are inad-equate.

(c) The authorities requirements ofthe Act dealt with in this subpart arethose contained in subsections305(b)(4)-Means of Control;306(c)(7)-Authorites; 306(d)()-Con-trol Development and Resolve Con-flicts; 306(d)(2)-Powers of Acquisi-tion; 306(e)(1)-Techniques of Control;306(e)(2)-Uses of Regional Benefit;and 307(f)-Air and Water QualityControl Requirements. The organiza-tional requirements of the Act dealt

with in this subpart are those con-tained in subsections 305(b)(6)-Orga-nizational Structure; 306(c)(5)-Desig-nated State Agency; and 306(c)(6)-Or-ganization.

§ 923.41 Identification of authorities.(a) Requirement. In order to meet

the requirements of subsection305(b)(4) of the Act, States must iden-tify relevant constitutional provisions,statutes, regulations, case law andsuch other legal instruments (includ-ing executive orders and interagencyagreements) that will be used to carryout the State's management program.This identification will include the au-thorities required pursuant to sections306(d) and 306(e) of the Act.


The management program for each coast-al state shall include * * * (4) An Identifica-tion of the means by which the state pro-poses to exert control over the land usesand water uses referred to in paragraph (2),including a listing of relevant constitutionalprovisions, laws, regulations, and judicial de-cisions.

(1) A clear identification of the au-thorities relied upon to implement themanagement program is necessary forthe Assistant Administrator to deter:mine the legal adequacy of the pro-gram. When, in the opinion of the As-sistant Administrator, there is seriousquestion as to the enforceability ofany of the authorities asserted to bepart of the management program, theAssociate Administrator may requestthe designated State agency (for pro-gram development purposes) to seekan opinion from the State's AttorneyGeneral.

(2) Another purpose of this listing isto assure that there is a clear identifi-cation of laws and other authoritieswhich expressly are a part of the man-agement program and to which theFederal consistency provisions of theAct will be applied.

(c) Requirement. Irrespective of thecontrol technique chosen pursuant tosubsection 306(e)(1) of the Act, Statesmust have adopted at the time of pro-gram approval the legal authoritiescalled for in section 306(d) in order toassure that management of coastalland and water uses will be in accor-dance with the policies of the manage-ment program. These authorities mustinclude the ability to:

(1) Administer land and water useregulations in conformance with thepolicies of the management program;

(2) Control such development as isnecessary to ensure compliance withthe management program;

(3) Resolve conflicts among compet-ing uses;

(4) Acquire appropriate interests in-lands, waters or other property as nec-essary to achieve management objec-tives. Where acquisition will be a nec-

essary technique for accomplishingparticular management program poli-cies and objectives, the managementprogram must indicate for what pur-pose acquisition will be used (i.e., whatpolicies or objectives will be accom-plished); the type of acquisition (e.g.,fee simple, purchase of easements,condemnation); and what agency (oragencies) of government have the au-thority for the specified type of acqui.sition.

(d) Comment. Statutory Citation,Subsection 306(c)(7):

Prior to granting approval of a manage.ment program submitted by a coastal state,the Secretary shall find that I * * (7) Thestate has the authorities necessary to Imple-ment the program, including the authorityrequired under subsection (d) of this sec-tion.

(e) Comment. Statutory Citation,Subsection 306(d):

Prior to granting approval of the manage.ment program, the Secretary shall find thatthe state, acting through its chosen agencyor agencies, including local governments,areawIde agencies designated under section204 of the Demonstration Cities and Metro-politan Development Act of 1966, regionalagencies, or interstate agencies, has author.ity for the management of the coastal zone,In accordance with the management pro-gram. Such authority shall include power:

(1) To administer land and water use regu.lations, control development in order toensure compliance with the managementprogram, and to resolve conflicts amongcompeting uses; and

(2) To acquire fee simple and less than feesimple interests In lands, waters, and otherproperty through condemnation or othermeans when necessary to achieve confor-mance with the management program.

(f) Comment Examples of accept-able conflict resolution mechanisms,as referred to in (c)(3) above, include,but are not limited to, mediation pro-cedures, administrative review, guber-natorial action, or judicial appeal pro-visions provided that any such mecha-nism results in a decision which Isbinding upon the entities Involved.Since the policies, standards and crite-ria of the management program willform the basis for conflict resolution,it will be important that these beclearly and specifically stated. Thiswill be particularly true when the pri-mary means of resolving conflicts Is tobe judicial review or appeal.

(g) Comment. Where the acquisitiontechnique, referred to in (c)(4) above,will be a sJgnIflcant element of aState's management program, theState may be required to submit a spe-cific acquisition plan with evidence ofthe availability of adequate fundingfor those acquisitions a commitmentto carry out the acquisition plan,

(h) Comment, Given the provisionsof section 315(2) of the Act authoriz-ing acquisition funds for shorefrontaccess and for preservation of Islands.States should indicate in their man-


8406

RULES AND REGULATONS

agement program the acquisition au-thorities available for these two pur-poses. Such a list also will help tomeet the requirements of§ 923.25(a)(5) for identifying legal au-thorities and management techniquesthat can be used to meet shorefrontaccess or island preservation needs.

§ 923.42 Control techniques.(a) Requirement. A State must

choose to implement and enforce itsprogramf through any one or a combi-nation of the techniques provided forunder section 306(e)(1) of the Act. Thedifferences among the techniquesraise different issues that States mustresolve. These issues are discussed inthe Comments below.


CFART.' TOSUO~1O~Q~56t(lA

Prior to granting approval, the Secretaryshall also find that the program provides:

(1) For any one or a combination of thefollowing general techniques for control ofland and water uses within the coastal zone:

(A) State establishment of criteria andstandards for local Implementation. subjectto administrative review and enforcement ofcompliance;

(B) Direct state land and water use plan-ning and regulation, or

(C) State administrative review for consis-tency with the management program of alldevelopment plans, projects, or land andwater use regulations, including exceptionsand variances thereto, proposed by anystate or local authority or private developer.with power to approve or disapprove afterpublic notice and an opportunity for hear-Ings.

(c) Comment. Local implementa-tion-Technique A

(1) Control technique 306(e)(1)(A) ofthe Act allows for State establishmentof criteria and standards for local im-plementation, subject to administra-tive review and enforcement of compli-ance. The critical issues related to thistechnique are:(W The degree of specificity required

in the State criteria and standards,(i) The extent to which local pro-

grams, ordinances or regulations mustbe n place prior to approval of +theState's management program, and

(Ill) The means for State administra-tive review and enforcement of compli-ance.

The chart and discussions below aremeant to guide State responses tothese issues and to indicate the typeand degree of latitude OCZI will findacceptable.

u Gov c't I

F, 10:state p~st l~xe 12 4lht'- of :Ability To:

DiaTha~i retly Enfore

:Fr=~a I R!-shttcas

3

Z Ox'b) Preptre Local Fropra1& Pa,p. for Local Coy' ..tto atorce

.1) Prepare and Enforce.!Local FMroJrA & 7.e21

I

1d) Seek Jmdlefal 1P-letfA. anst L.ol Gov't Fo'

Wallure' to Mopt Picgna=anS R~s.

3.) kteyIc Local Gov't Atfms:M a Case-By-case easls ard:rPvent Those IrccosistentidtL the Stadards ". d criterla

t 02

- Olt

:b) Directly Enforce Tat:Portco of tz Local Pro-:9ra Tut 1s Being En-:forced IZproperly

C) Seek Judicial Relief-Atznst Local Co't For:Failure to Properly:Enfgrce.

'-3 Review Loca1 Go't:Actos en a Case-bY-Case:&sls arAJ Prevent D'.ose:ktlons Inconsistent with:the Stseudards: arA Cr1 tarit

) nmsre Enformet byThteimedlatz Level Gov't.


8407


(2) Specificity of standards. UnderTechnique A the State establishespolicies, standards and criteria regard-ing management of particular coastalresources, uses and areas for local gov-ernments to implement. (Item 1 onchart.) The policies of the programmay serve as the criteria and stan-dards for local implementation, pro-viding these policies meet the require-ments of section 923.3 for specificity.Local implementation. can consist ofdevelopment or revision of local pro-grams, laws, ordinances or regulationsprovided that these are based on theState policies, standards and criteriaand are enforceable. The State poli-cies, criteria and standards must beadopted as part of the coastal manage-ment program, either pursuant to leg-islation or binding executive action.These critdria must be adopted by theState at the time of submission of aprogram to the Assistant Administra-tor for approval and must be suffi-ciently specific to provide those whowill be affected by the managementprogram with an understanding ofhow land and water activities and useswill be managed once local programsand/or ordinances are adopted. At aminimum, the State guidelines mustprovide for, or incorporate, at least thedegree of specificity and predictabilityprovided by the general State coastalpolicies developed pursuant to § 923.3of these regulations. Following are twoexamples of guidance to localitiestaken from approved State programsthat is sufficiently specific:

(i) New development shall assurestability and structural integrity, andneither create not contribute signifi-cantly to erosion, geographic instabil-ity or destruction of the site or sur-rounding area or in any way requirethe construction of protective devicesthat would substantially alter naturallandforms along bluffs and cliffs.

(ii) The scenic and visual qualities ofcoastal areas shall be considered andprotected as a resource of public im-portance. Permitted development shallbe sited and designed to protect viewsto and along the ocean and sceniccoastal areas, to minimize the alter-ation of natural land forms, to be visu-ally compatible with the character ofsurrounding areas, and, where feasi-ble, to restore and enhance visualquality in visually degraded areas.

(3) States using Technique A mayseek section 306 approval after all req-uisite local ordinances or programshave been reviewed and approved. Insuch cases, only items 5-9 of the chartapply.

(4) Direct interim controls. Alterna-tively, States may seek program ap-proval prior to final approval of alllocal ordinances and programs pro-vided that:

(i) A reasonable time and procedurefor local compliance has been estab-lished (what constitutes a reasonabletime period shall be agreed to by theState and the Assistant Administra-tor);

(Wi) Procedures for approval of localprograms by the State agency includeprovisions for:

(A) Opportunity for the public andgovernmental entities (including Fed-eral agencies) to participate in the de-velopment of local programs; and

(B) Opportunity for the public andgovernmental entities (including Fed-eral agencies) to make their viewsknown (through public hearings orother means) to the State agency priorto approval of local programs; and

(C) Review by the State of the ade-qucy of local program consideration offacilities identified in a State's man-agement program in which there Is anational interest.

(il) The State policies, standardsand criteria are sufficiently specific (asdiscussed in (2) above); and

(iv) There is sufficient direct interimauthority to Insure that land andwater use decisions subject to themanagement program will be consis-tent with the policies, goals and objec-tives of the management program be-tween the time of section 306 approvaland the time when all local programsare adopted. The adequacy of thesedirect interim authorities will bejudged on the same basis as specifiedfor direct State controls (TechniqueB), discussed in (d) below, or as speci-fied for case-by-case reviews (Tech-nique C), as discussed in (e) below, asappropriate.During the period while local pro-grams, ordinances, etc. are beingadopted or revised and approved, agen-cies and applicants must be consistentonly with those State policies, stan-dards, criteria and authorities that arein effect in the interim. Once localprograms, ordinances, etc. are ap-proved by the State and incorporatedas either an amendment or a refine-ment (pursuant to the provisions of§§ 923.81 and 923.82 respectively), con-sistency with those local programs, or-dinances, etc. will be required.

(5) Review/Approval Process. OnceState policies, standards and criteriahave been adopted, local governmentspropose plans, programs and/or regu-lations to implement the policies andstandards. (Item 2 on chart.) This mayinclude the preparation of new com-prehensive plans, zoning ordinances,by-laws, subdivision regulations, spe-cial purpose regulations (as for exam-ple, sand dune protection ordinances),or the revision of existing plans, ordin-ances, or regulations. The State entityempowered by legislative or executivemandate to review local programs(which may include plans, laws, ordin-ances and/or regulations) must deter-

mine If the programs meet the re-quirements of the State policies, stan-dards and criteria. (Item 3 on chart.)If the localities do not develop pro.grams consistent with the policies,standards and criteria, the State musthave the authority to take action toassure that the management programis implemented, either by the State orby the local government. (Item 4 onchart.) To Insure implementation, theState must have the ability to do atleast one of the following:

(I) Directly enforce the 'State stan-dards and criteria. To use this alterna-tive, a State would need enough Stateauthorities to be able to control direct-ly land and water uses which have adirect and significant impact upon thecoastal waters;

(ii) Prepare a local program for thelocal government to enforce. To usethis alternative the State must have(a) statutory authority to prepare andadopt a program for a local govern-ment, and (b) a mechanism by whichthe State can cause the local govern-ment to enforce the State-created pro-gram. (See (iv) below for a potentialenforcement mechanism);

(il) Prepare and enforce a programand regulations on behalf of a localgovernment. Here the State must havethe authority to.(a) prepare and adopta plan, regulations, and ordinances forthe local government and (b) enforcesuch plans, regulations and ordin-ances. The distinction between this ap-proach and the preceding one Is thatin this.case the State both adopts andimplements while in the precedingcase, the State adopts but the localgovernment implements;

(iv) Seek Judicial relief against thelocal government for failure to complywith a management program includinga description of the standards and au-thorities under which judicial reliefcan be sought.

(v) Review local government actionson a case-by-case basis or on appeal,and prevent actions inconsistent withthe standards and criteria. Under thisoption, when a local government failsto adopt an approvable program, theState must have the ability to reviewactivities in the coastal zone subject tothe management program and thepower to prohibit, modify or conditionthose activities based on the policies,standards and criteria of the manage-ment program; or

(vi) If a locality fails to adopt a man-agement program, the State coulddevise a procedure whereby the re-sponsibility for preparing a programshifts to an intermediate level govern-ment, such as a county. If this inter-mediate level of government fails toproduce a program, then the Statemust have the ability to take one ofthe actions described above. This al-ternative cannot be used where the in-termediate level of government lacks


8408


the legal authority to adopt and im-plement regulations necessary to im-plement State policies, standards andcriteria.

(6) Enforcement. Once a local pro-gram is approved, implementation andenforcement begin. (Item 5 on chart.)To ensure that local actions continueto comply with the State managementpolicies, the State must establish amonitoring system. (Item 6 on chart.)The State agency designated pursuantto subsection 306(c)(5) of the Act willbe responsible for establishing a moni-toring system capable of detecting pa-terns of noncompliance except that inthe case of facilities in which there isa national interest or uses of regionalbenefit recognized in a State's man-agement program, the monitoringsystem must be capable of detectingsingle instances of local actions affect-ing such facilities or uses in a mannercontrary to the management program.Given the substantive differences thatcan be expected in State programswith respect to what constitutes com-pliance with State policies, it will beup to each State to develop and appro-priate monitoring system. The moni-toring system and the determinationof what constitutes a pattern'of non-.compliance should take into account-such considerations as the number ofactivities improperly managed; the sizeand type of such activities, their prox-imity to coastal waters and to specialmanagement areas, whether they con-stitute uses of regional benefit andwhether they affect facilities in whichthere is a national interest. A descrip-tion of the monitoring system and adiscussion of -what will constitute pat-terns of noncompliance shall be in-cluded in the program submission. Fol-lowing are some monitoring tech-niques States may want to use, eithersingly or in combination. The list isnot exhaustive and does not limitStates to only these techniques:

(I) Periodic reports-monthly reportssubmitted by each local governmentlisting all building permits issued, var-iances and exceptions granted, subdivi-sion plats approved, etc. during thepreceding month,

(ii) Spot checks by State Agency,(iii) Procedures for submission of

citizen complaints followed by Statereview of complaint,

(iv) Establishment of citizen "over-view" committees, or

(v) Selective review of local deci-sions. -

(7) If no pattern of noncompliance isfound, local governments continue im-plementation of local authorities andthe State's role is confined to contin-ued monitoring. (Item 7 on chart.) If,however, monitoring reveals a patternof noncompliance, the State must beable to insure that its standards andcriteria are adhered to. (Item 8 onchart.) The State must be capable of

assuring compliance when a pattern ofdeviation is detected or when a facilityinvolving identified national interestsor uses of regional benefit is affectedin a manner contrary to the program'spolicies. (Item 9 on chart.) When Stateaction is required because of failure bya local government to enforce Its pro-gram, the State has the following op-tions available to enforce compliance:

(I) Directly enforce the entire localprogram;

(H) Directly enforce that portion 'ofthe local program that is being en-forced improperly. State interventionhere would be necessary only in thoselocal government activities that areviolating the policies, standards or cr-teria. For example, if a subdivisionregulation were the only part of a pro-gram that was being enforced improp-erly, State enforcement could be limit-ed to that regulation. In such a case,the State would need to have the stat-utory authorlty to ensure complianceof subdivision applications;

(Ill) Seek Judicial relief against localgovernment for failure to properly en-force;

(lv) Review local government actionson a case-by-case basis or on appealand the power to prevent those actionsInconsistent with the policies andstandards. The same authorities asthose noted in connection with§ 923.42(cX5)(v) above would be neces-sary- or

(v) Provide a procedure whereby theresponsibility for enforcing a programshifts to an intermediate level of gov-ernment, assuming statutory author-ity exists to enable the immediatelevel of government to assume this re-sponsibility.

(d) Comment Direct state control-Techfilque B.

(1) Under Technique B, a State maycontrol land and water uses subject tothe management program on the basisof direct State Authority. This author-ity may be derived from a single, com-prehensive piece of legislation specificto coastal management and the re-quirements of this Act or on the basisof several different, often pre-existing,State authorities which are compati-ble with and applied on the basis ofthe coastal management policies devel-oped pursuant to § 923.3. This latterapproach has been referred to infor-mally as networking.• (2) Comprehensive legislation. Whileit is possible that a State will be ableto put together into a single piece oflegislation all the authorities neededto meet the requirements of this sub-part, it is more likely that evEn asingle, major piece of coastal legisla-tion will be supplemented with otherState authorities to meet all the legalrequirements. Where this will be thecase, States are advised to review thecommentary on networking that fol-lows. Also, in cases where a State will

8409

be relying primarily-but not exclu-sively-on a single piece of legislation.it is important to be explicit aboutthose other authorities Included in themanagement program as part of thelisting called for In § 923.41.

(3) Netwrking. The critical issuesrelated to networking are:

(I) The extent to which existing, spe-cial purpose laws adequately reflectand will be operated in conformitywith the State's comprehensive man-agement policies;

(11) The extent to which and when-rules and regulations of networked au-thorities need to be altered; and

(i1) The extent to which executiveorders intradepartmental or intera-gency agreements, memoranda of un-derstanding or agreement are bindingand enforceable. Even though eachagency is statutorily mandated tocarry out Its own, often more narrowlyfocused policies, the effect of network-ing Is to tie the implementation ofthese individual authorities into acomprehensive framework that ad-dresses more than the individual re-sponsibilities of each agency and thatmakes these authorities'part of anoverall, unified strategy for managingcoastal land and water resources. Inapplying existing authorities, theState must determine that they can beused to implement the full range ofpolicies Identified as necessary forcoastal management purposes.

(4) Enforceability. Each Stateagency which exercises statutory au-thority that is to be incorporated intothe management program must be le-gally bound to exercise Its authority inconformance with the State's enforce-able policies. This can be achievedthrough an executive order or an in-teragency agreement (includingmemoranda of understanding or agree-ment) provided that such order oragreement binds the affected partiesto conformance with relevant manage-ment program policies. In Stateswhere affected agency heads report di-rectly to the Governor and where theGovernor has a legal policy making re-sponsibility, an executive order will bean acceptable instrument to assure thecoordination of networked activities.

(5) Interagency agreements (such asmemoranda of understanding or agree-ment) must be binding and enforce-able in order to constitute acceptablelegal authorities. Interagency agree-ments will be considered enforceable ifthe management program and Stateauthorities in support of the programprovide grounds for bringing an actionto ensure compliance of networkedagencies with the program. It will besufficient If any of the following canbring suit: The State agency designat-ed pursuant to subsection 306(c)(5) ofthe Act, the State's Attorney General,another State agency, a local govern-ment, or a citizen.



(6) It is anticipated that executiveorders and interagency agreementswill focus on either or both of the fol-lowing:

(i) Tie in of an enforcement mecha-nism; as for example, tying in an exist-ing enforcement mechanism of anagency to serve as the basic compli-ance mechanism for coastal manage-ment purposes, or, more likely;

(ii) Establishment of conformancerequirements of other State agency ac-tivities or authorities to managementprogram policies. In order for intera-gency agreements to be consideredbinding, States should include the fol-lowing:

(A) A description of how thenetworked agency, in implementing orenforcing its particular authorities,will operate those authorities in con-formance with the management pro-gram's policies;

(B) A discussion of procedures to befollowed to resolve conflicts betweenagency activities and management pro-gram policies or conflicts betweenagencies regarding what-constitutesconformance with the policies:

(7) If networked State agencies canenforce the management programpolicies at the time of section 306 ap-proval without first having to revisetheir operating rules and regulations,then any proposed revisions to suchrules and regulations which would en-hance or facilitate implementationneed not be accomplished: prior to pro-gram approval. However, where Stateagencies cannot enforce coastal poli-cies without first revising their rulesand regulations, then these revisionsmust be made prior to program ap-proval. An example clarifying the dis-tinction between these two statementsfollows*' Assume State X has estab-lished as a management programpolicy that only specified types of de-velopment henceforth will be permit-ted on barrier islands. Assume furtherthat such a policy statement is con-tained in State legislation that pro-claims such policy to -be effective im-mediately and directs all State agen-cles to revise their existing operatingprocedures (including rules and regu-lations) within a certain time period toconform with the policy. In this case,the policy is enforceable at time ofmanagement program approval andthe revision of associated rules andregulations could occur after programapproval. Now, however, assume thesame policy is part of the managementprogram but the corresponding Statelegislation states the policy becomes-effective when State regulations havebeen revised to reflect this policy man-date. In this example, rule revisionwould be necessary prior to programapproval.

(e) Comment. Case-by-case reviews-Technique C.

(1) Under Technique C States reviewindividual development plans, pro-

Jects, br land and water use regula-tions (including variances and excep-ttons thereto) proposed by any Stateor local authority or private developerwhich have been defined in the man-agement program as subject to review

-for consistency with the managementprogram. The State must have thepower to approve or disapprove suchactions or the power to seek courtreview. The State must provide publicnotice of the action and must provideopportunity for a public hearing priorto rendering a decision. Under thistechnique the critical issues that mustbe addressed are:

(i) The basis on *W h the designat-ed State agency will decide to reviewparticular plans or projects;

(ii) The criteria by which plans andprojects will be approved or disap-proved; and

(ill) The procedures under which thecase-by-case reviews will be conducted.

(2) This technique requires thegreatest degree of policy specificity be-cause compliance with the programwill not require any prior actions onthe part of anyone affected by theprogram. Specificity also is needed toavoid challengds that decisions (madepursuant to the management pro-gram) are unfounded, arbitrary or ca-pricious.

(3) The State must identify theplans, projects or regulations it willreview, based on the significance ofthese plans in terms of Impacts oncoastal resources, p6tential for incom-patibility with the State's coastal man-agement policies, and greater thanlocal significance.

(4) Procedures, Certain minimal pro-cedural requirements are dictated bythe language of section 306(e)(1)(C) ofthe Act. These are that:

(I) Prior to approving or disapprov-ing the consistency of a development,plan or project with the managementprogram, public notice be provided.Such public notice should be providedin those communities most likely to beaffected by the proposal. Further,such public notice should provide in-formation on the nature of the pro-posal (such as size, location, type, etc.),where further information is available,and notice of hearing dates, if any;

(ii) There be the opportunity forhearings. Hearings may be defined aspublic hdarings or such other hearingsformat as may be permitted under aState's administrative procedure act orpursuant to an agency's administrativeor operating regulations, or provisionsfor providing written comments.

§ 923.43 Authorities related to uses of re-gional benefit. -

(a) Requirement. In addition to therequirement of § 923.13 to determinewhat constitute uses of regional bene-fit, States must provide for a methodof assuring that local land and water

use regulations within the coastal zonedo not unreasonably restrict or ex-clude land and water uses of regionalbenefit, In order to meet the requirements of this section, States mustidentify those techniques, includinglegal authorities, that will be used toassure that unreasonable restrictionsor exclusions by local land and wateruse regulations shall not be sustained.


Prior to granting approval, the Secretaryshall also find that the program provides: ** (2) for a.method of assuring that localland and water use regulations within thecoastal zone do not unreasonably restrict orexclude land and water uses of regionalbenefit.

(c) Comment. Following are some ex-amples of acceptable techniques thatmay be used to assure that local regu-lations do not unreasonably restrict orexclude uses of regional benefit. Theseexamples are not exclusive, but ratherare Illustrative of approaches that willmeet the requirements of this section:

(1) Statewide siting laws that super-cede local regulations when necessary;

(2) Assurance that an adequateamount of specific sites are or can beset aside to meet a projection of rea-sonable and foreseeable demand fordifferent uses of regional benefitthrough:

(I) State acquisition programs forsites as the need arises for particular

- uses of regional benefit;(ii) Provision of sites in local maps or

ordinances; or(Iii) State guidelines defining uses of

regional benefit and requiring theirconsideration as local Implementationprograms are developed.

If a state follows examples (11) or (ii),that State must have the ability toassure- that if local maps, ordinancesor programs are changed, suchchanges will not result in an insuffi-cient number of sites throughout thecoastal zone to meet projected de-mands;

(3) Definition of what constitutesunreasonable restrictions or exclusionsand establishment of an administra-tive or judicial mechanism to deal Withsuch restrictions or exclusions as theyoccur. Under this approach, the twoessential elements are:

(I) A specific definition of what con-stitutes an unreasonable restriction orexclusion in order to provide the basisfor an appeal or other action to theadministrative or judicial mechanism,States may wish to define "an unrea.sonable restriction or exclusion" alongsimilar lines to what woald constitute"arbitrary or capricious" zoning actionin order to provide-the same groundsfor action;

(1i) Provision of standing to someparty-either a State agency, a localgovernment, a landowner, or an ag-


8410


grieved party-to challenge an alleged-ly unreasonable restriction or exclu--sions.

§923.44 Air and water pollution controlrequirements.

(a) Requirement In order to fulfillthe requirements of section 307(f) ofthe Act, States must incorporate intotheir programs requirements estab-lished pursuant to the Federal WaterPollution Control Act (FTWPCA) asamended, and .the Clean Air Act-(CAA) as amended. Requirements areany enforceable standards establishedpursuant to either Act as defined bythe General Counsel of the Environ-mental Protection Agency (EPA).

(b) Comment Statutory Citation,Subsection 307(f):

Notwithstanding any ether provision ofthis title, nothing in this title shall in anyway affect any requirement (1) establishedby the Federal Water Pollution Act asamended, or the Clean Air Act as amended,or (2) established by the Federal Govern-ment or anystate orlocal government pur-suant to such Acts. Such requirements shallbe incorporated in any program developedpursuant to this title and-shall be the waterpollution control and air pollution controlrequirements applicable to such program.

(c) Comment Incorporation. (1)With respect to the document submit-ted for approval, it is sufficient thatthe program state that the require-ments of the FWPCA and CAA are theminimum water and air pollution con-trol- requirements applicable to themanagement program and are incorpo-rated by reference. Incorporation ofthe air and water quality requirementsshould involve their considerationduring program development, especial-ly with respect to use determinationsand designation of areas for specialmanagement. In addition, this incor-poration will prove to be more mean-ingful if close coordination, and work-ing relationships between the Statecoastal planning or managementagency and the air and water qualityagencies are developed and maintainedthroughout the program developmentprocess and after program approval.

(2) Following is a. table of the mostimportant Clean Air Act requirements.These requirements are categorized as

.either uniform, nationwide require-ments or non-uniform requirementsapplicable to a specific State or localarea. The first category of require-ments is established in the Clean AirAct or by the EPA. pursuant to provi-sions of the CAA, and applies uniform-ly in all areas of the country. Thesecond category of requirements isbased on the nature of air qualityproblems that exist or are forecast incoastal areas, in locations where emis-sion sources may affect .air quality incoastal areas, and in other areas of aState. The majority of the second cat-egory of requirements will be included

in- the State Implementation Plans(SIPs) required by the Clean Air Act.

TAamn-Clean Afr Act rquirementsUniform, natonwide

requirementsNational ambient air

quality standRrds.Motor vehile emlIon

standards (exceptwhere States harebeen granted a waiverby EPA).

New source performancestandards.

National eml= onsstandards forhazardous airpolutant.

Non~uniformrequire'menLs (SIP')

New aource review.

Emissions or air qualltystandards morestringent than Federalstandards.

Prerventon of sIgnificantdeterdoratan.

Att anment andmaintenance ofnational ambient airquality standards

Otherattainment ormaIntenan meumsuch as tranportatIoncontrol measures.

(3) Water quality standards are es-tablished by promulgation or EPA ap-proval of State standards, taking Intoconsideration public water supplies,protection and propagation of fish,shellfish and wildlife, recreation, agri-culture, industry and navigation. EPAitsef develops standards on effluentlimitations, new source performancestandards, pre-treatment standardsand toxic pollutant discharge stan-dards.

(4) If more stringent standards aredeveloped by a State pursuant to theCAA or FWPCA, and where such stan-dards can be enforced under State au-thorities, they must be incorporatedinto the State's management program.

(I) In such cases, if incorporation ofthese more stringent standards leadsto the restriction or exclusion of somefacilities in which there is a nationalinterest in their siting, such exclusionor restriction is established pursuantto the requirements of the Clean AirAct and Federal Water Pollution Con-trol Act in which there Is also a na-tional interest.

(ii) Where more stringent require-ments are incorporated, these shouldbe explicitly referenced as such In themanagement program. Whether or notthe additional requirements per semust be Included n the body of themanagement program document, as anappendix, or as a separate referencewill depend on the nature and detailof these requirements. States shouldconsult with OCZM on this matter.

§ 923.45 Organizational structure.(a) Requirement In order to fulfill

the requirements of subsections305(b)(6) and 306(c)(6) of the Act,States must describe the organization-al structure that will be used to Imple-ment and administer the managementprogram. This description must In-clude a discussion of those State andother agencies, including local govern-ments, that will have responsibility foradministering, enforcing and/or moni-toring those authorlties or techniquesrequired pursuant to the following

subsections of the Act: 306(cX2)(B);306(c)(7); 306(d) (1) and (2); 306(e) (1)and (2) and 307(W). Further, the Statemust describe the relationship ofthese administering agencies to theState agency designated pursuant topubsection 306(cX5) of the Act.

(b) Comment Statutory Citation,Subsection 305(bX6):

The management program for each coast-al state shall Include 0 0 (6) A descriptionof the organizational structure proposed toImplement such management program In-cluding the responsibilities and Interrela-tionships of local areawIde, state, regionaland Interstate agencies in the managementproces -

(c) Comment Statutory Citation.Subsection 306(c)(6):

Prior to granting approval of a manage-ment program submitted by a coastal state.the Secretary shall find that 0 " " (6) thestate Is organized to implement the manage-ment program required under paragraph (1)of this subsection.

(1) The main purpose of this re-quirement is to provide a clear under-standing of the entities that have re-sponsibility for administeri~g variousaspects of the management programand the interrelationship of these en-tities.

§ 923.46 Designated State agency.(a) Requirement In order to fulfill

the requirement of subsection306(c)(5) of the Act, the Governormust designate a single State agencyto receive and administer section 306grants. This State agency shall be fis-cally and programmatically responsi-ble for the grants and further musthave the following capabilities.

(1) The fiscal and legal capability toaccept and administer grant funds, tomake contracts or similar arrange-ments (such as passthrough grants)with participating agencies for thepurpose of carrying out specific man-agement tasks and to account for theexpenditure of implementation fundsby any recipient of such monies.

(2) The administrative capability tomonitor and evaluate the managementof the State's coastal resources by thevarious agencies and/or local govern-ments with specified responsibilitiesunder the management program (irre-spective of whether such entities re-celve section 306 funds); to make peri-odic reports to OCZM, the Governor,or the State legislature, as appropri-ate, regarding the performance of allagencies involved in the program. Theagency must be capable of presentingevidence of adherence to the manage-ment program or justification for devi-ation from the program as part of thereview of State performance requiredby section 312 of the Act; and

(3) The ability to request approvalfrom the Assistant Administrator foramendments or refinements to themanagement program, If and when ap-propriate.

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY MARCH 1, 1978

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"(b) Comment. Statutory Citation,Subsection 306(c)(5):

Prior to granting approval of a manage-ment program submitted by a coastal state.the Secretary shall fihid that * * * (5) TheGovernor of the state has designated asingle agency to receive and administ6r thegrants for implementing the managementprogram required under paragraph (1) ofthis section.

"(C) Comment. The last two require-ments in (a) above should be read inclose conjunction with those of Sub-part J-Review of Approved Manage-ment Programs, which reals withreview of performance after approval,amendments, or refinements to man-agement programs, and terminationand withdrawal of funding.

(d) Comment. The 306 agency desig-nation is designed to establish a singlepoint of accountability for prudent useof administrative funds in the further-ance of the management program andfor monitoring of management activi-ties. Designation does not imply thatthis single agency need be a "superagency" or the principal implementa-tion vehicle. It is, however, the focalpoint for proper administration andevaluation of the State's program andthe entity to which OCZM will lookwhen monitoring and reevaluating aState's program during program im-plementation.

(e) Comment The requirements forthe single designated agency containedherein need not be viewed as confiningor otherwise limiting the role and re-sponsibilities which may be assignedto this agency. It is up to the State todecide in what manner and to whatextent the designated State agencywill be involved in actual program im-plementation or enforcement. In de-termining the extent to which thisagency should be involved in programimplementation or enforcement, spe-cific factors should be considered, suchas the manner in which local, munici-pal and regional authorities are in-volved in program implementation,the administrative structure of theState, the authorities to be reliedupon and the agencies administeringsuch authorities. Because the desig-nated State agency may be viewed asthe best vehicle for increasing theunity and efficiency of a managementprogram, the State may want to con-sider the following in arriving at a des-ignation.

(1) Whether the designated Stateentity has a legislative mandate to co-ordinate other State or local pro-grams, plans and/or policies withinthe coastal zone;

(2) To what extent linkages alreadyexist between the entity, other agen-cies, and local governments;

(3) To what extent management orregulatory authorities affecting thecoastal zone presently are adminis-tered by the agency; and

(4) Whether the agency is equippedto handle monitoring, evaluation andenforcement responsibilities.

§ 923.47 Documentation.(a) Requirement. In order to fulfill

the requirements of subsections 306(c)(4), (5), (6) and (7), documentation isrequired to the effect that the Gover-nor:

(1) Has reviewed and approved asState policy the management pro-gram, and any changes thereto, sub-mitted for the approval of the Assis-tant Administrator;

(2) Has designated a single State,agency to receive and administer im-plementation grants;

(3) Attests to the fact that the Statehas the authorities necessary to imple-ment the management program; and

(4) Attests to the fact that the Stateis organized to implement the manage-ment program.This documentation may be containedin the transmittal signed by the Gov-ernor which accompanies the manage-ment program submission.

(b) Comment. This requirement fora statement of endorsement by theGovernor is intended to make clearthat the management program is anenforceable instrument of State policyand to assure gubernatorial commit-ment In carrying out the program.

Subpart F-Coordination, Public Involvementand National Interests

§ 923.50 General.(a) Coordination with, governmental

agencies having interests and responsi-bilities affecting the coastal zone, andinvolvement of interest groups as wellas the general public are essential ele-ments in the development and admin-istration of a coastal management pro-gram. The coordination requirementsof this subpart are intended to lead tosubstantive inputs into the manage-ment program. Evaluation and incor-poration of these inputs is necessaryto achieve a proper balancing of di-verse interests. The policies of section303 of the Act require that a balancingof varying, sometimes conflicting, in-terests be achieved, including.

(1) The preservation, protection, de-velopment and, where possible, therestoration or enhancement of coastalresources;

(2) The achievement of wise use ofcoastal land and water resources withfull consideration having been givenecological, cultural, historic,' and es-thetic values and needs for economicdevelopment; and

(3) The involvement of the public, ofFederal, State and local governmentsand of regional agencies in the devel-opment and implementation of coastalmanagement programs.

(b) Comment. Statutory Citation,Section 303:

The Congress finds and declares that it Isthe national policy (a) to preserve, protect,develop, and, where possible, to restore orenhance the resources of the Nation's cost-al zone for this and succeeding generations,(b) to encourage and assist the states to ex-ercise effectively their responsibilities In thecoastal zone through the development andimplementation of management programsto achieve wise use of the land and water re-sources of the coastal zone giving full con.sideration to ecological, cultural, historic,and esthetic values as well as to needs foreconomic development, (e) for all Federalagencies engaged in programs affecting thecoastal zone to cooperate and participatewith state and local governments and re-gional agencies in effectuating the purposesof this title, and (d) to encourage the par-ticipation of the public, of Federal, stateand local governments and of regional agen-cies in the development of coastal zone man.agement programs. With respect to imple-mentation of such management programs, itis the national policy to encourage coopera-tion among the various state and regionalagencies including establishment of inter-state and regional agreements, cooperativeprocedures, and Joint action particularly re-garding environmental problems.

(c) Coordination with and participa-tion by various units and levels of gov-ernment, interest groups and the gen-eral public shall begin early in the pro-gram development process and shalloccur continuously throughout theprocess on a timely basis to assurethat such efforts will result In sub-stantive inputs into a State's manage-ment program. State efforts should bedevoted not only to obtaining informa-tion necessary for developing the man-agement program but also to obtainingviews on what is proposed for Imple-mentation and to responding to con-cerns by interested parties. The re-quirements for intergovernmental co-operation and public participationcontinue after program approval. Thissubpart, therefore, deals with requirements for coordination with governmental and private bodies to assurethat their interests are fully articulat-ed and considered during the programdevelopment process and that proce-dures are created to insure continuedconsideration of their viewpointsduring program implementation. Inaddition, this Subpart deals with medi-ation procedures for serious disagree-ments that occur during program de-velopment and preliminary approval.Accordingly, this Subpart deals withthe following subsections of the Act:306(c)(1)-Opportunity for Full Par-ticipation; 306(c)(2)(A)-Plan Coordi-nation; 306(c)(2(B)-Continued State-Local Consultation; 306(c)(3)-PublioHearings; 306(c)(8)-Consideration ofNational Interests; 307(b)-FederalConsultation; and 307(h)-Mediation.

§ 923.51 Federal-State consultation,(a) Comment. The requirements of

subsections 306(c)(1) and 307(b) of theAct and those of subsections 307 (c)and (d) establish reciprocal State-Fed-


8412


eral relationships. It is in the contextof these relationships that the require-ments of this section should be read.In exchange for providing relevantFederal agencies with the opportunityfor full participation during programdevelopment and for adequately con-sidering the views of such agencies,States can effectuate the Federal con-sistency provisions of subsections 307(c) and (d) of the Act. (See 15 CFRPart 930).

(b) Requirement In order to meetthe requirements of section 306(c)(1)of the Act for the opportunity of fullparticipation by relevant Federalagencies in the development of aState's management program, Statesmust:

(1) Contact the office of each rel-evant Federal Agency listed in§923.2(d) and such other Federalagencies as may be relevant, owing toa State's particular circumstances,early in the development of its man-agement program. The purpose ofsuch contact is to develop mutual ar-rangements or understandings regard-ing that agency's participation duringprogram development;

(2) Provide for Federal agency inputon a timely basis as the program is de-veloped. Such input shall be relatedboth to information required to devel-op the management program and toevaluation of and recommendationsconcerning various elements of themanagement prdgram;"

(3) Summarize the. nature, frequen-cy, and timing of contacts with rel-evant Federal agencies, including at-tempts to resolve differences, if any;

(4) Evaluate Federal comments re-ceived during 'the program develop-ment process and, where appropriatein the opinion of the State, accommo-date the substance of relevant com-ments in the management program;and

(5) Indicate the nature of majorcomments by Federal agencies pro-vided during program development(either by including copies of com-ments or by summarizing comments)and discuss any major differences orconflicts between the managementprogram proposals and Federal viewsthat have not been accommodated orresolved at the time or program sub-mission.

(c) Requirement With respect to tlerequirements of (b)C4) above, Statesmust consider and evaluate relevantFederal agency views or commentsabout the following.

(1) The management of coastal re-sources for preservation, conservation,development, enhancement or restora-tion purposes, including statements ofnational interest policies or claims re-lated thereto;

(2) Statements of national interestsin the planning for or siting of facili-ties which are more than local innature;

(3) Uses which are subject to themanagement program:

(4) Areas which are of particularconcern to the management program:and

(5) Federally developed or assistedplans that must be coordinated withthe management program pursuant tosubsection 306(c)(2XA) of the Act.(See § 923.56 for more detail on thislast requirement.)

d) Requirement In order to fulfillhis/her responsibilities under subsec-tion 306(c)(1), the Assistant Adminis-trator shall find that adequate oppor-tunity for full participation by rel-evant Federal agencies has been pro-vided if a State has:

(1) Contacted relevant Federal agen-cies;

(2) Provided timely opportunities forrelevant Federal agency participationand input; and

(3) Advised these agencies of publichearings on the management program.

(e) Requirement In order lo fulfillhis/her responsibilities pursuant tosubsection 307(b), the Assistant Ad-ministrator shall determine whetherState consideration of relevant Feder-al agency views, during program devel-opment, has been adequate, based onthe nature and reasonableness of aState's evaluation of and response torelevant Federal agency views thatrelate to substantive requirements ofthe Act, in particular those relating toboundaries, uses subject to manage-ment, areas of particular concern,legal authorities, guidelines on prior-ities of uses, organization, shorefrontplanning process, energy facility plan-ning process, the erosion planning pro-cess, and national interest consider-

.ations.Mf) Comment. Statutory Citation,

Subsection 306(c)(1):Prior to granting approval of a manage-

ment program submitted by a coastal state,the Secretary shall find that:

(1) the state has developed and adopted amanagement program for Its coastal zone0 0 0 with the opportunity for full participa-tion by relevant Federal agencies.

(1) Following are some proceduresStates should use to insure the effec-tivenes' of their consultation efforts.Officially designated regional or fieldcontacts of relevant Federal agenciesshould be informed early of the man-agement program's overall design andspecific applicable Issues and shouldbe briefed periodically at importantstages in the program developmentprocess. Policies, criteria for determin-ing use permissibility, designations orareas of particular concern and othermajor elements of the managementprogram should be made available foragency review and comment as theseelements are developed and consideredby the States. Individual consultation,as well as group presentations, shouldbecome more substantive and specific

as the program moves toward submis-sion. Individual consultations with rel-evant Federal agencies should be par-ticularly useful as the State estab-lishes Its Federal consistency proce-dures, determines which Federal ac-tivities, projects, licenses, permits, andassistance it will want subject to theconsistency requirements of subsec-tion 307 c) and Cd) of the Act, and de-cides which national interest consider-ations are most important for theState to address with respect to itscoastal zone.

(2) At the earliest practicable time inthe process of developing the manage-ment program relevant Federal agen-cies should advise the State agency ofthe extent of their interests in the de-velopment of the management pro-gram. In particular, Federal agenciesshould discuss with the State agencythe extent to which Federal activities,projects, regulatory actions and/or as-sistance programs may affect coastalresources. Federal agencies are encour-aged to provide the State agency withtheir interpretations of various nation-al interests related to the planning for-and siting of facilities that are morethan local in nature or the conserva-tion of various coastal resources. (Seesection 923.52 for more detail on na-tional interest.) Federal agency state-ments on national interests should bedirected to those policies and issues aState's management program proposesto address or those which a Federalagency believes the management pro-gram should address. Federal agenciesshould provide technical Informationand other forms of assistance to aidStates in their program developmentefforts.

(g) Comment. Statutory Citation,Subsection 307(b):

The Secretary shall not approve the man-agement program submitted by a, State pur-suant to section 306 unless the views of Fed-eral agencies principally affected by suchprogram have been adequately considered.

(1) In addition to the considerationof relevant Federal agency views re-quired during program development,Federal agencies have the opportunityto provide further comment duringthe program review and approval pro-cess. (See Subpart H for details on thisprocess.) Moreover, in the event of aserious disagreement between a rel-evdnt Federal agency and designatedState agency that relates to those ele-ments required in a State's manage-ment program pursuant to sections305 and 306 of the Act, the mediationprovisions of subsection 307(¢hl) ofthe Act are available. (See § 923.54 fordetails on mediation.)

§923.52 Consideration of national inter-ests

(a) GeneraL The primary purpose Inrequiring, pursuant to subsection306(c)(8) of the Act, adequate consid-

FEDERAL REGISTER, VOL 43, NO. 41-WEDNEDAY, MARCH 1, 1978

8413


eration of national interests involvedin the planning for and siting of facili-ties (which are necessary to meetother than local requirements) is toassure that such facilities are consid-ered in (1) the development of theState's management program, (2) thereview and approval of the program bythe Assistant Administrator, and (3)the implementation of the program assuch facilities are proposed. One neednot conclude from this that any andall such facilities proposed for thecoastal zone need be sited therein. TheAct presumes a balancing of nationalinterests in such facilities as defenseinstallations, energy production anddistribution facilities and highwayswith Federal, State and local concernsinvolving adverse economic, social orenvironmental impacts.

(b) Requirement. In order to meetthe requirements of subsection306(c)(8) of the Act, States must:

(1) Describe which national interestsin the planning for and siting of facili-ties (which are necessary to meet re-quirements that are more than local innature) were considered during pro-gram development and the sourcesrelied upon for such consideration;

(2) Indicate how and where the con-sideration of these national interests isreflected in the substance of the man-agement program including, where ap-propriate, indication of when andwhere national interests in identifiedfacilities may compete or conflict withother national interests in coastal re-source conservation. In cases of such.conflict, the program shall indicatehow the conflict has been or can beweighed and resolved;

(3) Describe a process for continued.consideration of identified national in-terests (in facilities which are neces-sary to meet requirements that aremore than local in nature) during pro-gram implementation, including aclear and detailed description of theadministrative procedures and decisionpoints where such interests can beconsidered.

(c) Requirement. With specific refer-'ence to meeting the requirement foradequate consideration of the nationalinterest in the planning for and sitingof energy facilities in, or which signifi-cantly affect, a State's coastal zone,States shall, in addition to the require-ments of (b) above:

(1) Consider any applicable interstateenergy plan or program developed pur-suant to section 309 of the Act; and

(2) Meet the requirements for anenergy facility planning process pursu-ant to the requirements of § 923.14,except that:

(i) States with a management pro-gram approved prior to October 1,1978, that do not meet the require-ments of subsection 305(b)(8) of theAct shall:

(A) Describe existing or developingmanagement program standards or

policies "as these apply to energy facili-ty planning and siting; and

(B) Describe briefly the status of theplanning process required pursuant tosubsection 305(b)(8) of the Act.

(d) Comment. The 1976 amendmentsto subsection 306(c)(8) of the Actstress adequate consideration of thenational interest in the planning forand siting of energy facilities in or sig-nificantly affecting a State's coastalzone. The 1976 amendments also pro-vide in subsection 305(b)(8) of the Actfor a specific process related to energyfacilities including a process for antici-pating and managing the impacts forsuch facilities. The requirements forthat planning process are set forth in§ 923.14. The Congress intended thisplanning process to complement theevaluation of varying national inter-est§ pursuant to subsection 306(c)(8)of the Act. It is for this reason thatthe more specific requirements of (c)above are imposed.

(e) Comment. Statutory Citation,Subsectiozi 306(c)(8):

Prior to granting approval of a manage-ment program submitted by a coastal state,the Secretary shall find that: * * * (8) Themanagement program provides for adequateconsideration of the national interest In-volved in planning for, and in the siting of,facilities (including energy facilities in, orwhich significantly affect, such state'scoastal zone) which are necessary to meetrequirements which are other than local innature. In the case of such energy facilities,the Secretary shall find that the state hasgiven such considerations to any applicableinterstate energy plan or program.

(f) Comment. In considering thenature of national interests associatedwith the planning for and siting of fa-

cilities that are more than local Innature, States should consult withFederal and other State agencieshaving responsibilities related to theseinterests as well as with Industries andother relevant entities to determinethe potential demand for facilities ineach State that are more than local innature. Moreover, In considering thenature of national interests Involvedin the planning for and siting of facili-ties, States also should consult withFederal and other State agencies in-volved in resource conservation andprotection as well as with other rel-evant entities to determine the natureof resource conservation and protec-tion interests affecting sitirig consider-ations. Other factors that should enterinto a State's consideration of nationalinterests involved in planning for andsiting of facilities are the configura-tion and size of a State's coastal Zone;the quantity, quality and distributionof.various coastal resources; and thecoastal-dependent nature of those fa-cilities. Below Is a table that lists usesthat may have facilities associatedwith them in which there may be a na-tional interest in their planning orsiting. This table Is illustrative, It is in-tended as a guide to States as to facili.ties that normally are appropriate forconsideration as to the national inter-est associated with them. As a Statedevelops Its program, It is anticipatedthat the national interest consider-ations in that State will begin to be de-limited so that the program can focuson the relatively few of the Itemslisted in the table below and the latertable that are most significant in thatState's coastal zone.

TABLE l.-Facilities in which there may be a national interest in planning or siting

Uses Associated facilities Aszociated Federal agencies

National defense and Military bases and installations; de- Department of Defense, Nationalaerospace. fense manufacturing- facilities; Aeronautics and Space Adnilnistra

aerospace facilities. tlon.Energy production and Oil and gas rigs, storage, distribution Department of Energy, Department

transmission, and transmission facilities; power of Interior. Department of Coin.plants; deep-water ports: LNG fa. merce. Department of Transporta.cilities; geothermal facilities; coal tion, Corps of Engineers,mining facilities.

Recreation ................................ National seashores, parks, forests; Department of Interior, Departmentlarge and outstanding beaches and of Agriculture.recreational waterfronts.

Transportation ........................ Interstate highways, railroads; air. Department of Transportation, Do.ports; ports; aids to navigation, in- partment of Commerce. Corps ofeluding Coast Guard stations. Engineers.

Regional water treatment Sewage treatment plants; desalizina- Environmental Protection Agency,plants. tion plants. Department of the Interior.

(g) Comment. The sources whichspecify the national interests to beconsidered during program develop-ment and implementation, as requiredin (b)(1) and (3Y above, are numerous.Among these are:

(1) Federal laws and legislation, asfor example the Outer ContinentalShelf Lands Act, the Department of

Energy Reorganization Act, the Na-tional Highways Act, the FederalWater Pollution Control Act, and theClear Air Act;

(2) Policy statements from the Presi-dent, as for example the NationalEnergy Plan; the National Environ-mental Message and associated execu-


8414


tive orders on wetlands and flood-plains; the national Outdoor Recrea-tion Plan;

(3) Statements from Federal agen-cies regarding national interests spe-cific ally related to a State's coastalzone, including such statements asmay be provided by the Assistant Ad-ministrator as part of NOAA's ongoingassistance to States on this matter;and '

(4) Plans, reports and studies fromFederal, State, interstate agencies orfrom interstate groups, as for exampleinterstate energy plans.

(h) Comment. In meeting the re-quirements of (a)(2) above to indicate

TABLE 2.-Resources in which there may be a national interest

Resources Major related Federal legislation Associated Federal agencies

Water.... .... Federal Water Pollution Control Act. Environmental Protection Agency.Corps of Engineers.

Air .. Clean Air Act------.-- Environmental Protection Agency.Wetlands . ................. Federal Water Pollution Control Act: Corps of Engineers. Environmental

Fish and Wildlife Coordination Act. Protection Agency. Department ofInterior, Department of Commerce.

Endangered flora and fauna. Endangered Species Act...... Department of Interior. Departmentof Commerce.

Flood plains and erosion Flood Insurance Act................ Housing and Urban Development.hazard areas. Corps of Engineers. Department of

Agriculture.Barrier islands and beaches.. Coastal Zone Management Act.... Department of Interior. Department

of Commerce. Corps of Engineers.Historic and cultural " National Historic Preservation Act . Advisory Council an Historic Preser.

resources. vation.Wildlife refuges and reserves Pitman-Robinson Act: Dingall-John. Department of Interior. Department

son Act; Land and Water Conserva- of Commerce.tion Fund Act.

Areas of unique cultural National Historic Preservation Act.. Advisory Council on Historic Prener-significance. vation. Department of Interior.

Minerals.......................... 'Mineral Leasing Act._............._ Department of Interior.Prime agricultural lands ....... Homestead Act _.............. Department of Agriculture.Forests ..... .................. National ForestManagement ct..... Department of Agriculture. Deprt.

ment of Interior.Living marine resources .... Fisheries Conservation and Manage- Department of Commerce. Depart-

"ment -Act; Marine Mammal Protec- ment of Interior.tion Act.

(i) Comment In evaluating the ade-quacy of a State's considerationduring program development of na-tional interests involved in the plan-ning for or siting of facilities whichmay be more than local in nature, theAssistant Administrator shall assessthe reasonableness of:

(1) The claims made and sourcesused to specify national interests;- (2) Consideration given in the man-agement program to varying national-interests, including the relative weigh-ing of competing interests;

(3) Responses to major siting con-cerns raised by Federal agencies orother interested parties, including con-siderating of any applicable interstateenergy plan or program developed pur-suant to section 309 of the Act; and

(4) Adequacy of the procedures de-scribed by the State for continued con-sideration of national interests afterprogram approval.

§ 923.53 Federal consistency procedures.(a) Requirement States shall include

in their management program submis-

sion, as part of the body of the submis-sion or as an appendix or an attach-ment, the provisions they will use toimplement the Federal consistency re-quirements of subsections 307 (c) and(d) of the Act. These provisions shallinclude, at a minimum, the following:.

(1) An indication of whether theState agency designated pursuant tosubsection 306(c)(5) of the Act or asingle other State agency will handleconsistency review (see 15 CFR930.18);

(2) a. list of Federal license andpermit activities that will be subject toreview (see 15 CFR 930.53);

(3) for States anticipating coastalzone effects from Outer ContinentalShelf (OCS) activities, the license andpermit list also must include OCSplans which describe in detail Federallicense and permit activities (see 15CFR 930.74; and

(4) the public notice procedures tobe used for certifications submitted

if conflicts occur in the managementprogram between facilities in whichthere are national interest consider-ations and resource protection, andhow these conflicts may be resolved.States may want to refer to the natureof national interests associated withparticular resources. Below is a tablesuggesting resources in which theremay be national interests. As with thetable above, this listing is illustrativeand not all-inclusive. States should ex-amine sources similar to those notedin paragraph (g) above for specifica-tion of the national interests in theseresources.


for Federal license and permit activities and. where appropriate, for OCSplans (see 15 CFR 930.61-930.62 and930.78).

(b) Comment. The management pro-gram may include the following provi-sions:

(1) a list of Federal activities, includ-ing development projects, which in theopinion of the State agency are likelyto significantly affect the coastal zoneand thereby will require a Federalagency consistency determination (see15 CFR 930.35);

(2) a description of the types of in-formation and data necessary to assessthe consistency of Federal license andpermit activities and, where appropri-ate, those described in detail iq OCSplans (see 15 CFR 930.56 and 930.75);and

(3) For Federal assistance applica-tions outside the coastal zone theState agency chooses to review, a de-scription of the geographic areawithin which Federal assistance activi-ties will be subject to review (see 115CFR 930.94).

(c) CommenL The management pro-gram should include a brief explana-tion of the Federal consistency re-quirements contained in suliections307(c) (1), (2), (3) and (d) of the Act inorder to provide affected parties withthis basic information.

(d) Comment. For further guidanceon structuring the implementing pro-visions of the Federal consistency re-quirements, see 15 CFR 930.

§ 923.54 Mediation.(a) The Act provides for the media-

tion of "serious disagreements" be-tween any Federal agency and a coast-al State during the development or ini-tial implementation of a managementprogram. This provision in the Actfurther reinforces Congress' acknowl-edgement that State-Federal differ-ences may arise and should be resolvedduring program development or imple-mentation. In certain cases, mediationby the Secretary or his/her designee,with the assistance of the ExecutiveOffice of the President. may be an ap-propriate forum for conflict resolu-tion. This section describes the condi-tions of and processes for mediation ofserious disagreements that may ariseduring program development. Media-tion provisions for handling seriousdisagreements during full program im-plementation are quite similar and arediscussed in 15 CFR Part 930.

(b) CommenL Statutory Citation,Subsection 307(h):

In the case of serious disagreement be-tween any Federal agency and a coastalstate:

(1) In the development or the initial im-plementation of a management programunder section 305. * .

The Secretary, with the cooperation ofthe Executive Office of the President. shall

8415


seek to mediate the differences involved Insuch disagreement * * *

(c) State-Federal differences thatarise during program developmentshould be addressed initially by theparties involved. Whenever a seriousdisagreement cannot be resolved be-tween the parties concerned, eitherparty may request the informal assist-ance of the Assistant Administrator inresolving the disagreement. This re-quest shall be in writing stating thepoints of disagreement and the reasonstherefor. A copy of the request shall besent to the adversary party.

(d) If a serious disagreement per-sists, Secretarial mediation shall beprovided to the parties to the seriousdisagreement when requested of theSecretary in writing by either partyand when all parties agree to partici-pate in the mediation effort. A copy ofthe written request must be sent tothe parties to the serious disagree-ment and to the Assistant Administra-tor.

(e) Within 15 days following receiptof a request for mediation, the disa-greeing agency shall transmit a writ-ten response to the Secretary, and tothe agency requesting mediation indi-cating whether it wishes to partidipatein the mediation process. The Secre-tary will not provide mediation assis-tance unless all parties to the seriousdisagreement agree to participate.

(f) If all parties agree to mediation,the Secretary shall schedule a media-tion conference to be attended by rep-resentatives from the Office of theSecretary, and the disagreeing Federaland State agencies. The Secretaryshall provide the parties at least 10days notice of the time and place setfor the mediation, conference. Noticealso shall be placed in the FERAREGISTER to allow other parties an op-portunity to make known to the Secre-tary in writing their interest in thedisagreement.

(g) Secretarial mediation effortsshall last only so long as the partiesagree to participate. The Secretaryshall confer with the Executive Officeof the President, as necessary, duringthe mediation process.

(h) Mediation shall terminate: (1) Atany time the parties agree to a resolu-tion of the serious disagreement, (2) ifone of the parties withdraws from me--diation, (3) in the event the pa4iesfail to reach a resolution of the seriousdisagreement within 15 days following

- Secretarial mediation efforts, and theparties do not agree to extend media-tion beyond that period, or (4) forother good cause.

(I) If the conflict resolution effortsdescribed above do not resolve the dis-agreement, the Assistant Administra-tor shall determine whether inclusionin the management program of theState agency's position in the disagree-

ment affects the Assistant Administra-tor's ability to approve the State'smanagement program. The AssistantAdministrator shall communicate his/her determination in writing, with thereason(s) therefor, to the parties tothe disagreement.

§ 923.55 Full participation.(a) Requirement. In addition to con-

sultation with Federal agencies, sub-section 306(c)(1) of the Act requiresthat the opportunity for full participa-tion in program development be pro-vided State agencies, local govern-ments, regional organizations, port au-thorities and other interested publicor private parties. To meet this re-quirement with respect to governmen-tal entities (other than Federal) andother public, or private parties, Statesshall:

(1) Develop and make available gen-eral information regarding the pro-gram design, its content and its statusthroughout program development;

(2) Provide a listing, as comprehen-sive as possible, of all governmentalagencies, regional organizations, portauthorities and public and private or-ganizations likely to be affected by orhave a direct interest in the develop-ment and implementation of the man-agement program;

(3) Indicate the nature of majorcomments received from interested oraffected parties, as identified in (2)above, and the nature of the State'sresponse;

(4) Coordinate the contents of themanagement program with local,areawide or interstate plans applicableto areas within the coastal zone exist-ing on January 1 of the year in whichthe State's management program- issubmitted to the Assistant Administra-tor;

(5) Establish a mechanism to providefor continuing coordination with af-fected parties after program approval,including specifically establishment ofa mechanism for State-local consulta-tion with respect to State activitiesthat may conflict with local zoning,

(6) Hold public meetings, workshops,etc., during the course of program de-velopment at accessible locations andtimes, with reasonable notice andavailability of materials; and

(7) Hold public hearings during thedevelopment of the management pro-gram, at least one of which shall be onthe scope of the entire program.

These requirements are discussed ingreater detail in the commentary thatfollows and in the three sections thatfollow.

(b) Comment Statutory Citation,Subsection 306(c)(1):

Prior to granting approval of a manage-ment program submitted by a coastal state,the Secretary shall find that: (1) the statehas developed and adopted a managementprogram for its coastal zone * 0 * with the

opportunity of full participation by 0 0 0- state agencies, local governments, regional

organizations, port authorltie, and otherinterested parties, public and private 0 *

(c) Comment. As noted in the gener-al introduction to this subpart, themost effective means for assuring thatthe opportunity for full participationhas been provided is to initiate appro-priate activities early during programdevelopment and to continue such ef-forts on a timely basis throughout theprogram development process, More-over, the requirement to provide op-portunities for input from and partici-pation by interested or affected par-ties does not end with program ap-proval, as witness subsection 306(c)(2)(B) of the Act which requires theestablishment of a mechanism for con-tinuing State-local consultation onparticular matters after program ap-proval. (See §923.57 for details on therequirements of subsection306(c)(2)(B).)

(d) Comment. Public informationmay take many forms, among whichthe following should be given consider-ation:

(1) Brochures and reports madeavailable in places of public congrega-tion such as libraries, governmentbuildings, stores or transit facilities;

(2) Radio, television and personalpresentations;

(3) Press announcements;(4) Public meetings or hearings;(5) Exhibits;(6) Telephone "hot lines;" and(7) Films and slide shows.(e) Comment. States should also con-

sider establishing advisory committeesand/or technical advisory boards com-prised of public citizens representingspecific interests, local governmentrepresentatives, and or State and Fed-eral agency representatives. Thesecommittees and boards may serve anumber of useful purposes: providinginformation needed to develop themanagement program; serving as aconduit and evaluator of public inter-ests and concerns; and determiningmajor program directions.

§ 923.56 Plan coordination.(a) Requirement In order to meet

the requirements of subsection306(c)(;)(A) of the Act and the associ-ated requirements of § 923,55(a)(4),States shall coordinate the contents ofthe management program with local,areawide or interstate plans applicableto areas within the coastal zone exist-ing on January 1 of the year in whichthe State's management program issubmitted to the Assistant Administra-tor for approval. Evidence of coordina-tion shall be documented in the man-agement program by:

(1) Identifying local governments,areawide agencies designated pursuantto regulations established under sec-tion 204 of the Demonstration Cities


8416


and Metropolitan Development Act of1966, regional agencies or interstateagencies which have plans affectingthe coastal zone in effect on January 1of the year in which the managementprogram is submitted.

(2) Listing or providing a generalsummary of substantive contacts withthese entities to coordinate the man-agement program with their plans;and

(3) Identifying conflicts with thoseplans of a "regulatory nature that areunresolved at the time of programsubmission and the means that will bleused to resolve these conflicts.

(b) Comment. Statutory Citation,Subsection 306(c)(2)(A):

Prior to granting approval to a manage-ment program submitted by a coastal state,the Secretarj' shall find that * * *

(2) The State has: (A) coordinated its pro-gram with local areawide, and interstateplans applicable to areas within the coastalzone existing on January 1 of the year inwhich the state's management program issubmitted to the Secretary, which planshave been developed by a local government,and areawide agency designated pursuant toregulations established under section 204 ofthe Demonstration Cities and MetropolitanDevelopment Act of 1966, a regional agency.or an interstateagency * * *

(c) Comment. The process envisionedby this subsection of the Act shouldenable a State not only to avoid dupli-cation of and conflict between its pro-gram.and other plans applying withinits coastal zone but also to draw-uponthe planning capabilities of and workalready completed by a wide variety oflocal governments and other agencies.Particular attention shall be given toland use plans prepared pursuant tosection 701 of the Housing and UrbanDevelopment Act of 1968, as amended;State and areawide waste treatmentfacility or management plans preparedpursuant to sections 201 and 208 ofthe Federal Water Pollutio ControlAct, as amended; plans and designa-tions made pursuant to the Flood In-surance Act of 1974; and any applica-ble interstate energy plans or pro-grams developed pursuant to section309 of the Act; and regional and inter-state highway plan adopted by a gov-ernmental entity as of January 1 ofthe year in which the managementprogram is submitted. States shalltake into consideration the contents ofsuch Federal interagency agreementsas OCZM has entered into with re-spect to this Act, as for example theOCZM-HUD; and OCZM-EPA intera-gency agreements.

(d) Comment In order to meettherequirements of (a) (2) and (3) aboveuse of State and areawide clearing-houses, established pursuant to OMBCircular A-95 (revised) will suffice: (1)as a means of contacting all relevantentities provided that such entities areamong the recipients of clearinghousenotices and (2) as a mechanism foridentifying and resolving conflicts.

(e) Comment. Another means ofmeeting the requirements of (a) (2)and (3) above could be use of a com-mittee or task force of local, regional,State and/or interstate officials, as ap-propriate, to Identify and coordinaterelevant plans.

§ 923.57 Continuing consultation.(a) Requirement. In order to meet

the requirements of subsection306(c)(2)(B) of the Act and the associ-ated requirements of § 923.55(a)(5),States shall:(1) Establish a mechanism which

will provide for continuing consulta-tion and coordination after programapproval between local governments,regional, areawide, interstate andother State agencies with activities inthe coastal zone and the State agencydesignated pursuant to subsection306(c)(5) of the Act; and

(2) Establish a mechanism specifical-ly designed to insure continued State-local government consultation onState management program decisionsthat would conflict with any localzoning ordinance, decision or otheraction.

(b) Comment. Statutory Citation.subsection 306(c)(B):

Prior to granting approval to a management program submitted by a coastal state,the Secretary shall find that *

(2) The state has 0 • °(B) established an effective mechanism

for continuing consultation and coordina-tion between the management agency desig-nated pursuant to paragraph (5) of this sec-tion and with local governments, Interstateagencies, regional agencies, and area.wideagencies within the coastal zone to assurethe full participation of such local govern-ments and agencies in carrying out the pur-poses of this title; except that the Secretaryshall not find any mechanism to be "effec--tive" for purposes of this subparagraphunless it includes each of the following r-quirements:(i) Such management agency is required.

before Implementing any management pro-gram decision which would conflict withany local zoning ordinance, decision, orother action, to send a notice of such man-agement program decision to any local gov-ernment whose zoning authority is affectedthereby.

(11) Any such notice shall provide thatsuch local government may, within the 30-day period commencing on the date of re-ceipt of such notice, submit to the manage-ment agency written comments on suchmanagement program decision and any rec-ommendation for alternatives thereto, if noaction is taken during such period whichwould conflict or interfere with such man-agement program decision unless such localgovernment waives its right to comment.

(iII) Such management agency, if any suclrcomments are submitted to It, within such30-day period, by any local government,

(I) is required to consider any such com-ments,

(I) is authorized, in Its discretion, to holda public hearing on such comments, and(HI) may not take any action within such

30-day period to Implement the manage-ment program decision, whether or notmodified or the basis of such comments.

8417

(c) Comment. In meeting the re-quirement of (a)(1) above for estab-lishing a general mechanism for con-tinuing consultation and coordination,States should consider use of theOMB Circular No. A-95 (revised) Pro-ject Notification and Review Systemas the required mechanism providedthat affected local governments,areawide, regional, interstate andother State agencies are part of thenotification system.

States also should consider the pos-sibility of establishing or utilizingcouncils, committees, task forces, etc,with representation from affectedlocal governments, areawide, regional,interstate and other State agencies, asappropriate, as a vehicle for providingcontinuing consultation and coordina-tion after program approval. Such acouncil, etc., when It includes localgovernment representation, may be ahelpful vehicle in meeting the require-ments of (a)(2) above and as furtherdiscussed in comment (d) below.

(d) Comment The purposes of theState-local consultation mechanismcontained in subparagraphs (i), (ii)and (Ill) of subsection 306(c)(2)CB) ofthe Act are:

(1) To provide explicitly in a State'smanagement program for a mecha-nism to Inform local governments withzoning authority of management pro-gram plans or policies which couldconflict with such zoning authority;,

(2) To allow local governments anopportunity to comment on Statemanagement program plans and poli-cies which conflict with local govern-ment zoning,

(3) To require the State manage-ment agency to consider such com-ments, during which time it may holda public hearing (at its discretion) onthe matter, and to refrain from takingaction to Implement the proposedmanagement program plan or policyduring the comment period; and

(4) To permit the State managementagency to implement the managementprogram decision in the event thelocal government waives its right tocomment, concurs with the proposedaction, or takes action during the com-ment period which conflicts or inter-feres with the proposed State manage-ment program decision (in which case,a local government forfeits its right tocomment).

(e) Comment Coastal Zone manage-ment development and implementa-tion is a dynamic process. Congressrecognized that an effective means forpursuing this process required notonly increased efforts by coastal Stategovernments, but also participation bylocal governments. In Its amendmentof section 306(c)(2)(B) of the Act, Con-gress specifically developed a provisionthat major State policies and plan de-cisions to be implemented pursuant toan approved Statermanagement pro-

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MAKCH 1, 1978


gram require notice to legal govern-ments when such decisions could con-flict with local government zoning. Forthe purposes of this section, the, fol-lowing terms shall have the followingmeanings:

(1) "Management agency" refers tothe State agency designated by theGovernor pursuant to subsection306(c)(5) of the Act and to any otherState agency responsible for 'imple-menting a management program deci-sion;

(2) "Management program decision"refers to any major, discretionarypolicy decisions on the part of a man-agement agency, such as the determi-nation -of permissible land and wateruses, the designation of areas of par-ticular concern or areas for preserva-tion or restoration, or the decision toacquire property for public uses. Regu-latory actions dictated by State legis-lation, such as individual permit ac-tions, which are taken pursuant tothese major decisions are not subjectto the State-local consultation mecha-nism. Examples of what might consti-tute a major management program de-ci.'ion include, but are not limited to:'7i) A State management agency deci-

sion that a certain class of wetlandsmay not be filled and/or developed;

(ii) A decision prohibiting the devel-opment of non-water depenident facili-ties on certain shoreline areas; -

(ii) A decision, requiring that newdevelopment on the shoreline may notinterfere with existing public rights ofaccess to the sea, and that new devel-opments of a certain magnitude are re-quired to provide public access as partof the development;

(iv) A decision to acquire urban shor-eland for recreational purposes; or

(v) Designation of coastal historic re-sources or natural areas as areas forpreservation or restoration, when anyof these are discretionary, and not leg-islatively mandated, decisions of amanagement agency.

(3) "Conflict" (with a local zoningordinance, decision or other action). AState management program decisionmay be considered to be in conflictwith a local zoning ordinance if the de-cision is contradictory to that ordi-nance, including local ordinances thatImpose additional requirementsbeyond those of the State's program.However, a State management pro-gram decision that consists of addi-tional but different requirements shallnot be considered to be in conflict witha local zoning ordinance, decision orother action;

(4) "Local zoning ordinance, decisionor other action" refers to any localgovernment land or water use actionwhich regulates or restricts the con-struction, alteration or use of land,water or structures thereon or there-under. These actions include zoningordinances, master plans and official

maps. Accordingly, a local governmenthas the right to comment on a Statemanagement program decision whensuch decision conflicts with the abovespecified actions;

(5) "Written comment" from localgovernments shall be submitted inwriting to the State managementagency and may include recommenda-tions for alternative actions and/or arequest for a public hearing on themanagement program decision;

(6) "Waiver" of the right of a localgovernment to comment (thereby per-mitting a State agency to proceed im-mediately with implementation of themanagement program decision) shallresult:

(i) Following State agency receipt ofa written statement on the part oflocal government:

(A) Waiving its right to comment; or(B) Concurring with the manage-

ment program decision; or(C) Indicating the local government

intends to take action which conflictsor interferes with the managementprogram decision; or

(ii) Following a public statement bya local government to the effect of(A), (B) or (C) above; or

(iD Following an action by a localgovernment that conflicts or inter-feres with the management programdecision.A waiver of the right to comment or awaiver indicating concurrence mayalso be presumed if the local govern-ment fails to submit written commentsto the State agency within the 30-daycomment period. OCZM strongly en-courages local governments not toeffect a waiver by silence as this pro-cess causes needless delay in imple-menting a management program deci-sion.

(f) Comment. The purpose of thisnotice and comment procedure is toenable State agencies and local gov-ernments to achieve a consensus, whenappropriate and possible, with respectto proposed State land and water usedecisions. Local governments are en-couraged to submit comments to Stateagencies in order to try to assure thatpolicies and plans developed at theState level have sufficient flexibilityto accommodate the various and di-verse needs of coastal communities.For example, in response to a Stateagency management decision propos-ing to prohibit development of non-water dependent commercial uses onthe shoreline within the jurisdictionof a local government, that local gov-ernment might comment that the re-striction conflicts with an urban wa-terfront zoning ordinance that selec-tively permits such developments as ameans of promoting the economic via-bility of a redeveloping area. Based onsuch comments, the State manage-ment agency might be persuaded tomodify its original proposal. It should

be noted, however, that the require-ments of subsection 306(c)(2)(B) arenot intended to deflect from one ofthe basic purposes of the Act-that ofencouraging States to exercise effec-tively their responsibilities to achievewise use of land and water resources ofthe coastal zone. Accordingly, whilethe purpose of this specific consulta-tion requirement is to establish a pro-cess for discussion of differences, theultimate administrative authority toresolve conflicts shall be the Statenianagement agency.

(1) State programs must detail a pro-cedure whereby local governmentswith zoning authority are notified ofmanagement program decisions whichwill affect their jurisdiction. For pur-poses of this consultation mechanism,local governments are those defined insection 304(10) of the Act which havesome form of zoning authority. Suchnotice must be in writing and mustinform the local government of itsright to submit comments to the Statemanagement agency in the event theproposed State management programdecision conflicts with a local zoningordinance decision or other action.States are encouraged to use, wherepossible, existing procedures such'asthose established in administrativeprocedures acts. The effect of provid-ing such notice is to stay State actionto implement its management decisionfor at least a thirty-day period unlessthe local government waives its rightto comment.

(2) State management programs alsomust provide that the managementagency adequately consider all com-ments received by local government(s).This consideration should include awritten response by the managementagency to the local government(s),within a reasonable period of time fol-lowing receipt of local comments, as tothe outcome of that agency's consider-ation of local comments. Such consid-eration may include a decision, at thediscretion of the management agency,to hold a public hearing. The Statemanagement program also must etforth public notice and other hearingprocedure requirements. In the eventthat a local government requests apublic hearing and such a request isgranted, the State management pro-gram may provide or require that thelocal government requesting suchhearing shall provide the requiredpublic notice and/or meeting facility.In the event a public hearing is held,the management agency shall providewritten response to the affected localgovernment, within a reasonableperiod of time and prior to implemen.tation of the management program de-cision, on the results of the agency'sconsideration of public hearing com-ments.

(3) State management programsshall include a provision indicating the

FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY,.MARCH 1, 1978

8418


procedures to be followed by a man-agement agency regarding implemen-tation of a management program deci-sion following receipt of a local gov-ernment's comments.

(4) State mangement programs areencouraged to include a provision re-quiridg notification in writing fromlocal governments to the appropriateState agency of any action takenduring the 30-day comment periodwhich conflicts or interferes with theproposed management program deci-sion. State management programs alsoshould include a provision 'for localgovernments to waive their right tocomment. In those instances wherethe local government chooses to waiveis opportunity to comment, or concurswith the State management decision,there is no need for further delay inimplementing the proposed Statemanagement decision. In order to ap-prise the State agency of these views,local governments are strongly encour-aged to transmit such views in writingto the State agency (using the proce-dure described in the State's manage-ment program). Otherwise, the Stateagency will be compelled to await un-necessarily the expiration of the 30-day comment period before proceedingwith the proposed decision. A localgovernment forfeits its right to com-ment on a proposed managementagency decision, and to request apublic hearing when the local govern-ment takes action during the commentperiod which conflicts or interfereswith the proposed management deci-sion. Where a local government In-tends to take such conflicting or inter-fering action. OCZM strongly encour-ages local governments to so advisethe State agency in writing.

(5) State management programsshould indicate what action the Stateagency will take in the event a localgovernment pursues a conflicting orinterfering action. States are encour-aged to develop their responses to con-flicting local actions within the frame-work of sections 306(d)(1) and306(d)(2) of the Act. Section 306(d)(1)of the Act provides, inter alla, that theState has the management authorityto resolve conflicts among competinguses. Sections 306(e)(2) 9f the Act re-quires that the management programprovide for a method of assuring localland and water use regulations withinthe coastal zone do not unreasonablyrestrict or exclude land or water usesor regional benefit.

§ 923.58- Public hearings.(a) Requirement. In order to meet

the requirements of subsections306(c)(1) and (c)(3) and section 311 ofthe Act and the associated require-ments of § 923.55(a)(7), States shall:

(1) Hold a minimum of two publichearings during the course of programdevelopment, at least one of which will

be on the total scope of the coastalmanagement program;

(2) Provide a minimum of 30 dayspublic notice of hearing dates and lo-cations; and

(3) Make available, at the time ofpublic notice, all agency materials per-tinent to the hearings.

(b) Comment. Statutory Citation,Subsection 306(c)(1):

Prior to granting approval of a manage-ment program submitted by a coastal statethe Secretary shall find that:

(1) The state has developed and adopted amanagement program for its coastal zone" " after notice 0 "(c) Comment. Statutory Citation,

Subsection 306(c)(3):

Prior to granting approval of a manage-ment program submitted by a coastal state,the Secretary shall find that 6 * 0

(3) The state has held public hearings Inthe development of the management pro-gram.

(d) Comment. Statutory Citation,Section 311:

All public hearings required under thistitle must be announced at least thirty daysprior to the hearing date. At the time of theannouncement, all agency materials perti-nent to the hearings, including documents.studies, and other data, must be made avail-able to the public for review and study. Assimilar materials are subsequently devel-oped. they shall be made available to thepublic as they become available to theagency.

(1) Notification of public hearingsshould provide the public the longestperiod of notice practical, but in noevent should notice be less than the 30day statutory minimum. Announce-ment of the hearings should bethrough media designed to inform thepublic-not merely to provide "techni-cal notice." Therefore, in addition toany publication of legal notice as re-quired by State law, reasonably infor-mative news releases should be madeavailable to the news media in the af-fected communities.

(2) At the time of the announce-ment, all agency materials pertinentto the hearings, including documents,studies, and other data, must be madeavailable to the public for review andstudy in the locale where the hearingsare to be conducted.

(3) Hearings on the total manage-ment program do not have to be heldon the actual document submitted tothe Assistant Administrator for sec-tion 306 approval. However, suchhearing(s) must cover the substanceand content of the proposed manage-ment program In such a manner thatthe general public, and particularly af-fected parties, have a reasonable op-portunity to understand the impactsof the management progra& If thehearing(s) are not on the managementdocument per se, all requests for suchdocument must be honored and com-ments on the document received priorto submission must be considered.

(4) Hearings should be held in thosegeographic areas which would be mostaffected .by the issues under consider-ation at the hearing. Hearings on thetotal management program should beheld in places within the State whereall citizens of the State may have anopportunity to comment.

(5) In many cases, the population ofthe coastal zone fluctuates significant-ly with the seasons of the year. Ef-forts should be made to insure thathearings were held when those popu-lations most likely to be affected arepresent.

(6) A verbatim transcript of thehearings need not be prepared but acomprehensive summary should bemade available to the publid withinforty-five (45) days after the conclu-sion of the hearings. A copy of thesesummaries shall "be sumnmitted withthe program document or withinthirty (30) days following formal pro-gram submittal.

Subpart G--Mscllansous

§ 923.60 General.The purposes of this subpart are to --

provide guidance on (a) meeting therequirements of subsection 306(h) ofthe Act dealing with segmented man-agement programs and (b) fulfillingthe requirements for an environmen-tal impact assessment which all man-agement program submissions, wheth-er for a State's total coastal zone or asegment, must contain.

§ 923.61 Segmentation. -

(a) If a State intends to adopt itsmanagement program in two or moresegments, It shall so advise the Assist-ant Administrator as early as practica-ble, stating the reasons for segmentingthe program and requesting the Assis-tant Administrator's approval- In addi-tion to meeting the approval require-ments of these regulations, each seg-ment of a management program mustdemonstrate that

(1) The segment Includes a geo-graphic area on both sides of thecoastal landwater interface;

(2) A timetable and budget havebeen established for the timely com-pletion of the remaining segment(s);and

(3) The State will exercise policycontrol over each segment of its man-agement program prior to and follow-ing Its integration into a completeState management program. Demon-stration of this control will include (i)completion of the management bound-ary determination for the entire coast-al zone throughout the State and (i)consideration of the national interestthroughout the State's entire coastalzone in the planning for and siting offacilities cited in § 923.52.

(b) Comment. Statutory CitationSection 306(h):


8419


At the discretion of the state and with theapproval of the Secretary, a managementprogram may be developed andadopted insegments so that immediate attention maybe devoted to those areas within the coastalzone which most urgently need manage-ment programs: Provided, that the stateadequately provides for the ultimate coordi-nation of the various segments of the man-agement program into a single, unified pro-gram, and that the unified program will.becompleted as soon as reasonably practicable.

(1) This section of the Act reflects arecognition that it may be desirablefor a State to develop and adopt itsmanagement program in segmentsrather than all at once because of arelatively long coastline, developmen-tal pressures or public support in spe-cific areas, or earlier regional manage-ment programs already developed andadopted. It is important to note, how-ever, that the ultimate objective ofsegmentation is completion of a man-agement program for the coastal zoneof the entire State in a timely fashion.Segmentation Is at the State's option,but requires the approval of theAssistant Administrator. States shouldnotify the Assistant Administrator asearly as possible regarding intention toprepare a management program in seg-ments.

(a) Comment. Continuing involve-ment at the State as well as local levelin the development and implementa-tion of segmented programs is essen-tial. This emphasis on State participa-tion and coordination with the pro-gram as a whole should be reflected inthe individual segments of a manage-ment program. Regional agencies andlocal governments may play a largerole in developing and carrying outsuch segmented programs, but theremust be a continuing State voicethroughout this process. This State in-volvement shall be expressed in thefirst segment of the management pro-gram in the form of evidence that (i)the boundaries of the coastal zone forthe entire State have been defined(pursuant to Subpart D) and (ii) therehas been adequate consideration ofthe national interest involved in theplanning for and siting of facilitiesnecessary to meet requirements whichare other than local in nature (pursu-ant to § 923.52) for the State's entirecoastal zone. These requirements aredesigned to assure that the develop-ment of a Statewide coastal zone man-agement program proceeds in an or-derly fashion and that segmented pro-grams reflect accurately the needs andcapabilities of the State's entire coast-al zone which are represented In thatparticular segment.

(1) It is recognized that small Islandsmay form separate and valuable eco-logical units for which a segment ofthe management program may be es-tablished with relatively few problems.The Assistant Administrator maywaive certain requirements under this

section Related to segmented approvalfor islands. The requirements that theState must (1) provide an adequateconsideration of the national interestin the planning for and siting of facili-ties necessary to meet requirementswhich are other than local in naturefor the State's entire coastal zone and(2) define the boundaries of the coast-al zone for the entire State may bewaived if the Assistant Administratordetermines that their completionwould serve no useful purpose in eval-uating the merits of the applicationfor approval of a small slaifd segment.

(d) Comment. One of the distin-guishing features of a coastal zonemanagement program is its recogni-tion of the relationship between landuses and their effect upon coastalwaters, and vice versa. Segmentsshould likewise recognize this relation-ship between land and water by in-cluding at least the dividing line be-tween them, plus the lands and waterson either side which are mutually af-fected. In the case of a segment whichis predominatly land, the boundariesshall include those waters which aredirectly and significantly impacted byland uses in the segment. Wlhere thepredominant part of the segment Iswater, the boundaries shall includethe adjacent shorelands strongly influ-enced by the waters, including at leastislands, transitional and intertidalareas, salt marshes, wetlands andbeaches (or similar such areas inGreat Lakes States). *A segmentedmanagement program shall not be de-veloped solely for the purpose of pro-tecting or controlling a single coastalresource or use, however desirablethat inay be.

(e) Comment. Segmented manage-ment programs submitted for approvalwill be reviewed and approved in thesame manner as programs for com-plete coastal zones, utilizing the sameapproval criteria, plus those of thissection. States submitting segmentedprograms have the option of includingthe three planning elements requiredby subsections 305(b) (7), (8) and (9) ofthe Act as part of the segment submis-sion or as part of the final submissionwhich integrates the segments into asingle, unified program. ,

§ 923.62 Environmental impact assess-ments.

(a) Requirement. All State manage-ment program submissions must con-tain an environmental impact assess-ment that meets the requirements ofthe national Environmental Policy Act(NEPA). At present Council of Envi-ronmental Quality (CEQ) Guidelinesrequire the following Items be ad-dressed (although not necessarily inthe same order presented below):

41) A description of the proposedaction;

(2) A description of the environmentaffected;

(3) The relationship of the proposedaction to land and water use plans,policies, and controls for the area;

(4) The probable impact of the pro-posed action on the environment;

(5) Alternatives;(6) Probable adverse environmental

effects which cannot be avoided:(7) The relationship between local,

short-term usis of the environmentand the maintenance and enhance-ment of long-term productivity:

(8) Irrevocable or Irretrievable com-mitments of resources that would beinvolved in the proposed action shouldit be implemented: and

(9) Consultation and coordinationwith others.

(b) Comment A number of theseitems should already be addressed Inthe State's program submission. Inthese cases a simple cross-referencingwill be sufficient:

(1) The State's "description of theproposed action" should focus on theissues that the management programis designed to address and the meansby which these issues will be addressedthrough Implementation of the man.agement program. This should alreadybe part of the basic program submis-sion. Accordingly in the environmentalimpact assessment appendix, this itemcan be cross-referenced to the appro-priate page(s) or section(s) of the sub.mission. If a State is following theformat for submission suggested in§ 923.71, references to relevant por-tions of the "Summary," "Frameworkof Program Development," and "Poli-cies" would be appropriate.

(2) The "description of the environ-ment affected"-the State's coastalzone and the natural and manmade re-sources therein-also should alreadybe part of the program document sub-mitted for approval. Cross-referenceshould be made to relevant sections. Iffollowing the format suggested in§923.71, reference to "Framework ofProgram Development" would be ap-propriate.

(3) Again, cross-reference to relevantsections of the program submissionshould suffice to explain "the relation-ship of the proposed action to landand water use plans, policies and con-trols to the areas." Particular refer-ence should be made to those sectionsaddressing the requirements of§§ 923.3-General Requirements;923.11-Uses Subject to Management;923.13-Uses of Regional Benefit;923.41-Identification of Authorities;923.42-Control Techniques; 923.43-Authorities Related to Uses of Region-al Benefit; and 923.5-Plan Coordina-tion.

(4) The discussion of "the probableimpact of the proposed action on theenvironment" Is the major aspect aState will need to address as part ofthe environmental Impact assessmentappendix attached to its submission.


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The purpose of this discussion is to in-dicate, to the extent possible givendata and time constraints, the environ-mental, social and economic changesthat can be expected to result fromimplementation of the State's manage-ment program. In turn, this will pro-vide information, either explicitly orimplicitly, on both the level and distri-bution of costs and benefits to affect-ed parties. In effect, this discussionshould make explicit many of the as-sumptions that have gone into devel-oping and framing a State's manage-ment program. The environmentaland corresponding socio-economic im-pacts that can be expected to resultfrom program implementation willdepend, in large measure, on thenature of proposed -implementationtechniques. Moreover, not all aspectsof the State's management programwill necessarily involve changes and/or environmental impacts. This maybe so particularly where States will berelying on pre-existing managementand regulatory techniques. However,to the extent these existing tech-niques are applied in new ways andthereby create new impacts (such asgreater efficiencies in permit process-ing or, conversely, increased time re-quired -for permit reviews), thesechanges should be noted. The level ofspecificity regarding probable impactswill vary depending on (i) the level ofspecificity contained in the manage-ment program itself, (ii) the size of thearea to be manaied, and (iII) theamount of time, money and personnelallocated to this task.

(5) The discussion of "alternatives"should focus on those alternativesthat have been considered seriouslyand reviewed at some length byOCZM. In addition, alternatives whichraised substantial public debate as aresult of consultation and public par-ticipation during program develop-ment should be discussed. Usuallythese alternatives will relate to, man-agement techniques, boundaries anduses subject to management. To theextent these alternatives are discussedin the body of the management pro-gram document, cross-reference willsuffice.

(6) Since the program documentprobably will not contain an explicitdiscussion of "probable adverse envi-ronmental impacts which cannot beavoided," this aspect should be ad-dressed in the environmental impactassessment appendix. Where the pro-grain encourages certain uses or devel-opment activities which may have aprobable adverse environmental Im-pact, these should be identified. In ad-dition, since "environmental impacts"may cause socioeconomic impacts ofan adverse nature, these also shouldbe discussed. This discussion may bedone in conjunction with a discussionof the "relationship between local,

short-term uses of the environmentand the maintenance and enhance-ment of long-term productivity." It isalso possible to combine both of thesediscussions with that of "probableimpact of the proposed action on theenvironment" provided that it is clear-ly stated that all three aspects havebeen combined into one discussion inthe environmental impact assessment.

(7) In discussing the "relationshipbetween local, short-term uses of theenvironment and the maintenance andenhancement of long-term productiv-ity," it may be reasonable to assumethat, while there may be short-termnegative impacts on particular aspectsof the environment, over the long-term, effectuation of the State's man-agement program should contribute tomaintenance, and possibly enhance-ment, of productivity. However. whereshort-term environmental disruptionscan be Identified, such Identificationshould be made and discussed.

(8) Again, since the program docu-ment probably will not contain an ex-plicit discussion of "Irretrievable com-mitments of resources," this aspectshould be addressed in the environ-mental impact assessment appendix.The option exists to Include this dis-cussion In with some of the other as-pects Indicated above.

(9) Discussion of "consultation andcoordination with others" should al-ready be addressed In the programdocument and/or as an appendix docu-menting opportunities for full particl-pation. Accordingly, appropriate cross-referencing should be made, especiallyto those, sections that address the re-

'quirements of Subpart F. %(c) Comment OCZM will use the in-

formation provided in a State's envi-ronmental impact assessment (EIA) todetermine if an environmental impactstatement (EIS) is required. When anEIS is required pursuant to NEPA,OCZM will develop a draft EIS cover-ing the Assistant Administrator's pro-posed action of approving the manage-ment program. The timing and reviewprocedures for the EIS are discussedin § 923.72.

Subpart H-Review/Approval Procedures

§ 923.70 General.The purpose of this subpart is to de-

scribe the process of State program

CuAT.-Findfngs necesaSet ion of the ae

Sec. 306(a) which Includes the requirements of rec. 305:

review and approval following submis-sion of a State's management pro-gram. Because the review process usu-ally involves preparation and dissemi-nation of draft and final environmen-tal impact statements and lengthyFederal agency review, States shouldanticipate that it normally will take 7months between the time a State firstsubmits a draft management programto OCZM for threshold review and thepoint at which the Assistant Adminis-trator makes a final decision onwhether to approve the managementprogram. Certain factors will contrib-ute to lengthening or shortening thistimetable; these factors are discussedin the sections that follow. This sub-part also provides guidance on a rec-ommended format for the programdocument submitted to the AssistantAdministrator for review and approv-al. In addition, this subpart providescriteria for receiving, reviewing andproviding preliminary approval ofState coastal management programspursuant to subsection 305(d) of theAct.

§923.71 Recommended format for pro-gram submissions.

(a) This guidance is provided in re-sponse to requests from a number ofStates for a suggested format. Statesshould note, however, that this formatis not mandatory. As long as States ad-dress all the sections of the Act andassociated requirements of these regu-lations, the presentation of their man-agement program may be in suchformat as best suits their situationprovided that such format has beendiscussed with and agreed to byOCZM.

(b) States should include an indexwith their program submission that in-dicates where In tlhe management pro-gram document the information canbe found which is necessary to makethe findings required by the Act andassociated requirements of these regu-,lations. A chart is provided below ofthe findings required by the Act andassociated requirements of these regu-lations. This chart should assist Statesin developing the index If States usethe chart below as an index, it is rec-ommended that a third column, enti-'tied Page Number be added to expe-dite review of management programs.

ryfor sec. 306 apro1al

Assocated section(s) ofthese regulations

305(bXl): Boundadl- 923.31.923.32 923.33,923.34

305(b)(2): Uses subject to management 923.11,923.12305(bX3): Areas of particular concern 923.21. 923.23305(bX4): Means of control 923.41305(bX5): Guldelines on priorites of ue= _ _ _ _ _ 923.22305(b)(6): OreanltrUonal structure 923A5305(bX7Y Shorefront planning proce ..' 923.25305(bX8): Energy faclity planning proce-1 923.14305(b)(9): Erosion planning proce=s- 923.26


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RULES AND REGUIATIONS

CHAR.-Findings necessary for sec. 306 approval-Continued

Section of the act Associated section(s) ofthese regulations

Sec. 306(c) which includes:306(c)(1): Notice; full participation; consistent with sec. 303 ........................... 923.58, 923.51. 923.55, 923.3306(c)(2)(A): Plan coordination ............................................................................... 923.56306(c)(2)(B): Continuing consultation mechanisms ...................... 923.57

3(c(3): Public hearings ...... ... .... ... . ..... .......... ...... .................. ......... ... 923.58

306(c)(4): Gubernatorial review and approval ............................................ 923.47306(c)(5): Designation of recipient agency ........ . . . 923.46, 923.47306(c)(6): Organizatin ........................................................................................... 923.45, 923.47306(c)(7): Authorities......... ...... ... .. . ............ 923.41. 923.47306(c)(8): Adequate consideration of national nterests .............................. 923.52306(c)(9): Areas for preservation/restoratlon ............................................... 923.24

Sec. 306(d) which includes:308(d)(1): Administer regulations, control development; resolve conflicts..... 923.413086(d)(2): Powers of acquisition. if necessary . . . ........ 923.41

Sec. 306(e) which includes:306(e)(1): Technique of control .................. . . . . ... .. 923.41,923.42306(e)(2): Uses of regional benefit ........................................................................... 923.13, 923.41. 923.43

Sec. 306(h): Segments....... ...... 923.61Sec. 307 which includes:

307(b): Adequate consideration of Federal agency views ............................... 923.51307(f); Incorporation of air and water quality requirements ............................. 923.44

'Not required before Oct. 1.1978.'Applicable only to segmented management programs,

(c) OCZM recommends the followingformat for coastal management pro-gram submissions: Summary; Frame-work of Program Development; Poli-cies; and 306 Requirements. OCZMalso recommends the following itemsas appendices: Documentation of Gov-ernmental Consultation and PublicParticipation Efforts;" Summaries ofRequired Public Hearings; Text ofRelevant Legal Authorities; Environ-mental Impact Assessment (EIA); andsuch other Technical Reports, Maps,Organizational Charts or other mate-rials as a State feels would be useful inreviewing the management program.The elements of the main body of themanagement program are discussed ingreater detail below:

(1) Summary-This section shouldserve as an executive summary of theprogram and should describe brieflythe major elements of the State'smanagement program. This sectionalso should include a discussion of ob-jectives the State will seek to attainthrough implementation of its man-agement program. Specific milestonesand timeframes for accomplishment ofthese objectives should be establishedwhere possible. This information willbe useful in conducting the annualreview of approved programs requiredpursuant to section 312 of the Act.

(2) Framework of Program Develop-ment-This section should address themajor coastal issues and 'problemsidentified during the program develop-ment process, thq nature of thoseissues and problems, and how themanagement program can help to re-solve them. This section should in-clude a discussion of the major coastalnatural resources and human activitieswhich are important, unique and/orsubject to intense pressures or con-flicts. A brief discussion of the institu-tional setting within which the pro-gram was developed and some of themajor considerations or alternativesthat led to particular management ap-proaches is appropriate as part of this

section. In addition, there should be abrief discussion of those issues andproblems which the program may notaddress initially but which will betaken into consideration during pro-gram implementation and/or futureprogram refinements.

(3) Policies-This section should con-tain those policies that provide thebasis for a comprehensive, enforceableand predictable management program.These policies should be tied to issuesand problems (discussed in (2) above)and to legal authorities (discussed in(4) below).

(4) 306 Requirements-In this sec-tion States should demonstrate thatthe sections of the Act and these regu-lations necessary for approval havebeen -met. The following contents aresuggested:

(i) Boundaries-The requirements ofsubsection 305(b)(1) of the Act andSubpart D of these regulations shouldbe addressed. States may want to indi-cate here, or as part of the EIA, majorboundary alternatives considered.Generalized maps of the managementboundaries and of excluded Federallands, if provided, are recommendedfor inclusion in this section (or if moreeasily handled as a separate appendix,their location in the appendix shouldbe indicated in this section).

(ii) Uses Subject to Management-The requirements of subsections305(b)(2), 305(b)(8) and 306(e)(2) ofthe Act and related sections 923.11-923.14, and 923.43 of these regulationsshould be addressed in terms of theprocess used to determine uses subjectto the management program and howthese uses will be managed.

(iII) Special Management Areas-The requirements of subsections305(b)(3), 305(b)(5), 305(b)(7),305(b)(9), and 306(c)(9) and the associ-ated requirements of Subpart C ofthese regulations should be addressed.States are encouraged to include gen-eralized maps locating designatedAreas of Particular Concern.

(iv) Authorities and Organization-The requirements of subsections305(b)(4), 305(b)(6), 306(c)(5)-306(c)(7), 306(d), 306(e) and 307(f) ofthe Act and the associated require-ments of Subpart E of these regula-tions should be addressed through anarrative synopsis of the administra-tive and legal bases that will be usedto implement and insure enforcementof and compliance with the policiesand the use and area determinationsof the management program. This sec-tion should include, as applicable, dis-cussion of six types of legal authori-ties: State legislation, State agencyregulations, gubernatorial executiveorders, Interagency agreements, sig-nificant judicial decisions and signifi-cant constitutional provisions. Withrespect to the organizational structurethat will be used to implement themanagement program, this sectionshould include a discussion of theroles and responsibilities during theprogram implementation of the Stateagency designated pursuant to subsec-tion 306(c)(5) of the Act and of otherState, local or regional agencies thatwill be involved in carrying out themanagement- program. The relation-ship of the designated State agency tothese other agencies also should be de-scribed.

(v) Consultation, Participation andNational Interests-The requirementsof subsections 306(c)(1)-306(c)(3),306(c)(8) and 307(b) of the Act and therelated requirements of Subpart F ofthese regulations should be addressed.Included herein should be a summaryof consultation efforts with relevantFederal and State agencies, local gov-ernments, regional, areawide and/orinterstate entities. A summary ofpublic information and participationduring program development shouldbe included, including an indication ofwhere and when required public hear-ings were held and a brief summary ofthose hearings. Also included hereinshould be discussions of national inter-est considerations; what proceduresthe State will use to implement theFederal consistency provisions of theAct; and what mechanisms will beused to insure continued governmentalconsultation and public participationafter program approval. Detailed doc-umentation regarding a number of therequirements addressed in this sectioncan be reserved for appendices.

(vi) Miscellaneous-Normally, Stateswill address the requirements of sub-section 306(c)(4) and related § 923.41in the gubernatorial transmittal thatwill accompany the program submis-sion. For a segment submission, thesame format should be used. All therequirements of the Act and these reg-ulations apply unless otherwise notedin § 923.61. Segment submissions mustalso address the requirements of sub-section 306(h) of the Act and the asso-ciated requirements of § 923.61.


8422


§ 923.72 Review/approval procedures.(a) Upon submission by a State of Its

draft management program, OCZMand NOAA will review the documentto determine if it adequately meetsthe.requirements of the Act and theseregulations. These reviews normallywill take three weeks or longer. As-suming positive findings are made andmajor revisions to the State's draftmanagement program are not re-quired, OCZM will prepare a Draft En-vironmental Impact Statement(DEIS). (If major revisions are neces-sary, this initial review period willextend beyond three weeks.) TheDEIS will incorporate the State's pro-gram document. This combined docu-ment, hereinafter referred to as theDEIS, will be distributed-to principallyaffected Federal agencies, State, localand regional agencies, national inter-est groups and to interested individ-uals. Preparation of the DEIS, print-ing of the document, delivery to EPA,and publication in the FEDERAL REGIS-TR, of notice of availability of theDEIS and notice of date and locationof public hearing on the DEIS normal-ly will take 45 days. Since.States nor-mally will be responsible, for printingthe DEIS, the time involved will varydepending on State printing capabili-ties.

(b) From the time of notice of avail-ability in the FEDERAL REGISTER of theDEIS, each Federal agency, otherperson or entity normally has 45 dayspursuant to CEQ guidelines to providecomments, if any, on the managementprogram and/or on the DEIS to theAssistant Administrator. During thistime period, a public hearing will beheld in one or more locations in thecoastal State whose program is underreview.. At least fifteen (15) daysnotice, pursuant to CEQ guidelinesand the Administrative Procedure Act,will be provided, including announce-ment of availability of the DEIS, Fol-lowing the public hearing(s), the com-ment period normally will remainopen for fifteen days.

(c) Following the close of the DEIScomment period,the Assistant Admin-istrator willreview and evaluate com-ments rereived, in keeping with the reCquirement of subsection 3Q7(b) of the

-Act, that a State's management pro-gram not be approved unless the viewsof principally affected Federal agen-cies have been adequately considered,and in keeping with the requirementsof the National Environmental PolicyAct (NEPA). Preparation of responseto comments, revisions to the State'smanagement program (if appropriate),submission-of a final-program, andpreparation and printing of a FinalEnvironmental Impact Statement(WEIS) normally will take a minimumof three months. Factors that willvary this time frame are: the nature ofcomments received on the DEIS, the

nature and extent of revisions neces-sary to the management program, andState capabilities with respect toprinting the FEIS (since States nor-mally also will be responsible forprinting the FEIS).

(d) Notice of the availability of theFEIS will be published in the FEDERAL

-REGISTER. The Assistant Administratorshall send a copy of such statement toeach Federal agency or other personor entity which received a copy of theDEIS and to any additional personswho request a copy of the FEIS.

(e) The Assistant Administrator willreview and evaluate any comments re-ceived during the thirty day review inkeeping with the requirements of sub-section 307(b) of the Act. The Assis-tant Administrator shall then approveor disapprove a State's managementprogram. In the event of approval, theAssistant Administrator shall preparea set of findings with respect to the re-'quirements of the Act. These findingsshall be available uponrequest. Noticeof availability of these findings shallbe published in the FEDERAL RsazsrmzaPrincipally affected Federal agencieswill be sent a copy of the findings as amatter of course.

(f) In the event review of commentson the FEIS leads to a decision by theAssistant Administrator not to ap-prove the management program, the-Assistant Administrator shall so advisethe State In writing, including the rea-sons therefor. Notice of this decisionalso will be published in the FXERLREGISTRs.

§ 923.73 MiscellaneouL(a) The timelines laid out in § 923.72

may be shortened if any of the follow-ing occur.

(1) Reduction of the time allotted toreview environmental mpact state-ments is proposed consistent with ap-plicable procedures and guidelines andconcurrence Is requested from theCouncil on Environmental Quality.Reductions in review time normallyare limited to emergency circum-stances or conditions which wouldresult In impaired program effective-ness; or

(2) A draft environmental impactstatement has been issued in connec-tioa with preliminary approval pursu-ant to subsection 305(d) of the Act(see § 923.7.4 et seq.) and a supplemen-tary or final impact statement is allthat is necessary for full approval pur-suant to subsectiod 306(a) of the Act;or

(3) In the case of segmented pro-grams only, a determination Is madethat the proposed segment manage-ment program will not significantlyaffect the environment In such casesa negative declaration will be pre-pared. The program submission stillshall shall be sent to principally af-fected Federal agencies for theirreview and comment.

(b) The* Assistant Administratorshall follow the procedures of § 923.72in reviewing for approval any amend-ments or modifications to an approvedmanagement program submitted by aState. (See Subpart I for details onamendment procedures.)§ 923.74 Preliminary approval.

(a) The basic purpose of preliminaryapproval Is to allow a State additionaltime to Implement fully a coastal man-agement program which, in its designand description, meets the require-ments of section 306 of the Act. Ingranting preliminary approval, recog-nition is given to the need to include,.in a subsection 305(d) work program.those deficiencies, precluding section306 approval, the specifics for remedy-ng those deficiencies, and a timetable

within which this is to occur.(b) Another objective is to provide

funding to support initial implementa-tion of selected elements of a State'scoastal management program, pro-vided that the overall design and de-scription of the program meets thesection 306 requirements. For selectedelements to be initially implemented,necessary section 306 legal authoritiesand administrative capabilities mustbe in place.

(c) A third objective Is to provide aState with additional time to resolveproblems, uncovered during DEISreview of a program submitted for sec-tion 306 approval, when such problemswould preclude full approval

(d) The following are examples ofsituations under which States mayapply for preliminary approval:

(1) A State may be able to describethe legislative authority it needs inorder to mieet the requirements undersection 306 to have an approvable pro-gram, and to draft a bill carrying thisout, but not be able to enact samewithin the time period-provided pursu-ant to subsection 305(c). This could bebecause the legislature meets onlyevery two years, or because the pro-cess is too complicated to accomplishIn a matter of months.

(2) A State program may call onlocal units of government to preparetheir own coastal plans in accordancewith State guidelines. However, one oreven two years may be required forthese units to carry out their work.Under this example, it should be notedthat, depending on the nature of theState-local relationships and existinglegal authorities, this activity also canbe accomplished as part of a State'ssubsection 305(c) program develop-ment grant or as part of a section 306program administrative grant. (See§ 923.42(c)(4) for a discussion of whenthis activity can be performed as partof a section 306 administrative grant.)

(3) A State may need to reorganizewithin the Executive branch before aprogram can gain approval and fund-ing under section 306.

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1,1978

8423


(4) A State may be encounteringproblems resolving differences withone or a number of Federal agencieswith respect to specific aspects of itscoastal management program.

(e) Preliminary approval is not seenas a necessary continuum from section305 to section 306 status. States maymove directly from subsection 305(c)(program development) grants to sec-tion 306 (program implementation)grants. Progression from subsection305(c) status to subsection 305(d) (pre-liminary approval).status is not auto-matic, nor is progression from prelimi-nary approval status to section 306status automatic. Application for pre-liminary approval requires consulta-tion with the Assistant Administratorto insure that the State meets the eli-gibility conditions and approval crite-ria.

(f) Preliminary approval is meant toapply to a fully described coastal man-agement program foe a State's entirecoastal zone. Accordingly, segmentsare not eligible for approval pursuantto this subsection but shall continue tobe considered under provisions of sec-tion 306 of the Act and related re-quirements of these regulations deal-ing specifically with segmentation.

§ 923.75 Eligibility for consideration.(a) Requirement In order to be eligi-

ble for consideration for preliminaryapproval, pursuant to subsection305(d), a State must be in one of thefollowing situations:

(1) All subsection 305(c) program de-velopment grants have been expendedand the State can, describe a programthat meets the basic approval criteriabut there are still aspects of the pro-gram which must be instituted beforesuction 306 approval can be given; or• (2) At any time during section 305program development when a Statehas elements of its coastal manage-ment program to implement andmeets the basic approval requirement(that the overall program as describedwould be approvable when fully imple-mented); or

(3) During the course of section 306review, problems are uncovered thatpreclude section 306 approval but donot preclude preliminary approval.

§ 923.76 Criteria for preliminary approval.(a) Requirement For a State's coast-

al management program to receivepreliminary approval pursuant to sub-.section 305(d)(2) of the Act, the Statemust demonstrate that:

(1) The management program ful-fills the requirements of section 305(b)of the Act and §§ 923.11, 923.12, 923.21-923.23, 923.41, and 923.45 of these reg-ulations;

(2) Deficiencies that prohibitachievement of section 306 programapproval are Identified, after consulta-tion with the Assistant Administrator,

and the means and timetable for reme-dying these deficiencies are specified;

(3) The purposes for which the sub-section 305(d) grant are to be used arespecified;

(4) Adequate steps have been or arebeing taken to meet the requirementsunder section 306 or 307 of the Act,which involve Federal officials oragencies;

(5) The program as described andproposed for implementation would befully approvable when submitted forsection 306 approval; and

(6) For those elements to be imple-mented under subsection 305(d), thenecessary legal authorities and organi-zational structures are adequate andin place.

(b) Comment. (1) Pursuant to sub-section 305(d)(2)(A) of the Act, "(a)coastal state is eligible to receivegrants under this subsection if It has* * * (d)eveloped a management pro-gram which * * * (I) is in compliancewith rules and regulations promulgat-ed to carry out subsection (b), but (ii)has not yet been approved by the See-retary under section 306." The rulesand regulations referred to above arecontained in Subparts A-F of theseregulations."(2) 'Pursuant to paragraph305(d)(2)(B) of the Act, "(a) coastalState is eligible to receive grants underthis -subsection if it has * * *(s)pecifically identified, after consulta-tion with the Secretary, any deficiencyin such program which makes it ineli-gible for approval * * * (p)ursuant tosection 306, and has established a-rea-sonable time schedule during which itcan remedy any such deficiency." Theonly deficiencies that a State mayremedy after preliminary approval arethose that relate-to implementing ca-pability. In other words, an acceptablesubsection 305(d) program can be defi-cient only in its lack of having trans-lated fully described but pending im-plementing actions into accomplishedfact. Deficiencies bearing on the ade-quacy of program design, description,or implementation strategy cannot beaddressed as part of a subsection305(d) program but rather should con-tinue to be addressed as part of thebasic subsection 305(c) program devel-opment process. To meet the require-ments of subsection 305(d)(2)(B) ofthe Act, States should describe thenature of the deficiency, the reasonfor it, and the specific means and ti-metable by which the deficiency shallbe overcome. The schedule for ieme-dyingdeficiencies should be sufficient-ly long to be realistic, given the natureand number of deficiencies and theparticulars of a State's situation. Atthe same time It should be sufficientlytight to insure an enhanced and expe-ditious State effort. In no case shallthe timetable for remedying section306 deficiencies extend beyond fiscalyear 1980.

(3) Pursuant to subsection305(d)(2)(C) of the Act, "(a) coastalState Is eligible to receive grants underthis subsection If It has * * *(s)pecified the purposes for whichgrants shall be used."

(I) In specifying the purposes forwhich grants shall be used, States areadvised that the following representallowable subsection 305(d) costs:

(A) Resolving section 306 deficien-cies;

(B) Meeting the new planning re-quirements of subsections 305(b) (7).(8), and (9);

(C) Implementing those portions ofa State's coastal management programfor which sufficient authorities andorganizational structures are in place;and ,

(D) Updating coastal managementprograms if this updating would be anallowable cost after section 306 ap-proval.

(ii) Examples of fundable items toremedy section 306 deficiencies in-clude, but are not limited to:

(A) Pass-throughs to local or region-al units of government to developmaster programs and/or local ordin-ances conforming to State guidelines;

(B) Efforts necessary to enact orrefine needed legislation;

(C) Federal coordination efforts, in-cluding establishment of proceduresfor determihing Federal consistencyonce a coastal management program Isfully approved under section 306, and

(D) Negotiation of memoranda ofunderstanding and instituting otherarrangements for interactions amongState agencies.

(ii) Examples of fundable Items tomeet the new planning requirementsinclude:

(A) Development of a shorefrontaccess and protection planning pro-cess;

(B) Development of an energy facili-ty planning process; and

(C) Development of a shoreline ero-sion/mitigation planning process.

(iv) Examples of fundable items toinitiate implementation of selected as-pects of a State's coastal managementprogram include, but are not limitedto:

(A) Personnel or equipment neces-sary to administer approved permitand other authorities;

(B) Signs, publications, etc., relativeto approved management practices;and

(C) General maintenance/resourcemanagement activities.

(v) Example of fundable Items forupdating the management program in-clude, but are not limited to:

(A) Site-specific studies on appropri.ate management techniques for areasfor preservation or restoration;

(B) Opinion surveys to determinepublic understanding or acceptance ofvarious elements of the managementprogram;


8424


(C) Studies of ways to improve inter-governmental coordination techniquesapproved as part of the managementprogram.

(4) Pursuant to subsection305(d)(2)(D) of the Act, "(a) coastalState is eligible to receive grants underthis subsection if it has * *(t)akenor is taking adequate steps to meetany requirement under section 306 or307 which involves any Federal officialor agency." For purposes of this para-graph, the particular sections of 306and 307 are:

(i) Subsection 306(a)(l)-identifica-tion of excluded Federal lands;

(ii) Subsection 306(c)(l)-opportunl-ty for full participation by relevantFederal agencies. This shall includeadvising Federal agencies (especiallyat the regional level) of the State'sintent to apply for preliminary ap-proval;

(iii) Subsection 306(c)(8)-adequateconsideration of the national interestinvolved in planning for, and in thesiting of, facilities necessary to meetrequirements which are other thanlocal in nature;

(iv) Subsection 307(c)-developmentof procedures for certifying Federalconsistency with respect to Federal ac-tivities or development projects, andwith respect to activities subject toFederal licenses or permits;

(v) Subsection 307(d)-developmentof procedures for certifying Federalconsistency with respect to Federal as-sistance to State and local govern-ments; and-

(vi) Subsection 307(h)(l)-participa-tion in mediation procedures, if appro-priate.

(5) Pursuant to subsection305(d)(2)(E) of the Act, "(a) coastalState is eligible to receive grants underthis subsection if it has * 0 *(c)omplied with any other require-ment which the Secretary, by rulesand regulations, prescribes as beingnecessary and appropriate to carry out

.the purposes of this subsection." Byvirtue of these rules and regulations,the following are prescribed as neces-sary and appropriate for States tocomplete in order to merit prelininaryapproval under this paragraph:

(i) A description of the overall man-agement program of sufficient detailand addressing all section 306 findingsto allow a determination that, whenimplemented, these elements will con-stitute an approvable section 306 man-agement program.

(ii) For those aspects to be imple-mented under subsection 305(d), ademonstration that the legal authori-ties and organizational capability nec-essary for implementation exist attime of preliminary approval.

(Ill) An Environmental Impact As-sessment (EIA), with particular em-phasis on those elements, if any,which will be funded for implementa-tion purposes pursuant to subsection305(d).

§ 923.77 Preliminary approval review/ap-proval procedures.

(a) States interested In preliminaryapproval should consult with the As-sistant Administrator well In advanceof the point at which they would liketo receive such approval. As a generalrule, such consultation should beginsix months before approval is desired.The purpose of this consultation is todetermine:

(1) If the program will be sufficient-ly developed, designed and describedto warrant consideration for prelimi-nary approval at the time desired;

(2) If there are any elements of theState's management program eligiblefor implementation funding as part ofpreliminary approval;

(3) The content and detail of. theEIA which must accompany theState's preliminary approval submis-sion; and

(4) If an EIS will be necessary priorto granting preliminary approval.If the Assistant Administrator Indi-cates that the program appears tomeet the subsection 305(d) approvalcriteria, and If a determination ismade that an EIS will not be neces-sary prior to preliminary approval,States should plan on submitting thesubsection 305(d) program document,including an ETA, two to three monthsprior to the desired date of approval.If the Assistant Administrator deter-mines an EIS will be necessary prior togranting preliminary approval, Statesshould plan on submitting the pro-gram document, including the EIA,shortly after this determination ismade. The EIS procedures discussed in§ 923.72 then will be followed. The sub-section 305(d) program documentshould follow the general format rec-dnmended by OCZM in § 923.71. Inaddition, the information required by§ 923.76 (b)(2) and (b)(3) with respectto describing deficiencies, timetablefor remedying, and purposes for whichthe grant will be used must be includ-ed. The application for grant funds

and the accompanying work programis a separate document that may besubmitted in conjunction with or sub-sequent to submLsslon of the subsec- -tion 305(d) program document. The re-quirements for the grant applicationare contained in Subpart J, § 923.99.

(b) Upon submission by a State .of asubsection 305(d) program document,the Assistant Administrator shallreview the document for compliancewith the approval criteria contained in§ 923.76. If a State meets the approvalcriteria, the Assistant Administratormay award a subsection 305(d) grantand will issue a set of findings with re-spect to deficiencies and the timetablefor their resolution.

c) Copies of the subsetion 305(d)program document and the AssistantAdministrator's findings of deficien-cies will be distributed to relevant Fed-eral agencies.

(d) If a State applies for preliminaryapproval after formal section 306 pro-gram review has begun, preliminaryapproval will be Issued at that point inthe section 306 review process whenthe DEIS review reveals problems thatpreclude full program approval andimplementation but do not precludepreliminary approval. States will be re-quired to take into consideration thoseItems raised by the DEIS reviews aspart of the subsection 305(d) work pro-gram.

Subpart I-Changes to Approved ManagementPrograms

§ 923.80 General.(a) This Subpart establishes the cri-

teria and procedures by which changesto approved management programsmay be made. This Subpart also estab-lishes the conditions and proceduresby which administrative funding maybe terminated for programmatic rea-sons.

(b) Changes to an approved manage-ment program may take the form ofamendments (also referred to as modi-fications in subsection 306(g) of theAct) or refinements. The criteria fordetermining if a change is an amend-ment and the procedure for processingsuch amendment is contained in§ 923.81. The criteria for determiningif a change is a refinement and the re-lated review and approval proceduresare found in §923.82. Below is a chartdepicting the differences betweenamendments and refinements with re-spect to review and approval proce-dures.


8426 RULES AND REGULATIONS

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(c) An illustrative list is providedbelow of potential program-changes. Itdoes not distinguish between amend-ments and refinements. This distinc-tion is to be made on the basis of thecriteria contained in §§ 923.81 and923.82 respectively.

L=sOF PTENzM PROGRAM CHANGES

New or Revised LegislationExamples:

New powerplant siting authorityRevised wetlands lawAmended flood control authorityNew law authorizing acquisition of coastal

landsNew or Revised State Agency RegulationsExamples:

Regulations to implement sand mininglegislation

Revisions to shoreland regulations chang-ing permissible use districts, conditionaluses and/or maiagement techniques

Revision of dredge and fill permit regula-tions

New or Revised Local Implementation Pro-grams, Ordinances or Other RegulationsPursuant to State Policies, Criteria orStandards

Examples:Local management certified programs to

be in conformance with State standardsand criteria

New or revised shoreland ordinancesNew or revised soil erosion ordinancesNew or revised flood control zones

Additions, Deletions or Revisions to Desig-nated Areas of Particular Concern(APCs) or Areas for Preservation or Res-toration (APRs)

Examples:New designations of APCs pursuant to a

State's Critical Areas ActRevisions to designated hazard areas or

shoreline environmental areas pursuantto a State's Shoreline Management Act •

New designation of a port area for redevel-opment pursuant to APC procedures Ina State's management program

Changes to Enforceable Policies (by otherthan legislation or regulatio s as dis-cussed in (1) and (2),above)

Example:New executive order on floodplains man-

agementChanges in Organizational ArrangementsExamples:

Modification of the list of uses of regionalbenefit or the methods to assure localregulations do not unreasonably restrictor exclude such uses

Changes in State-local consultation proce-dures required pursuant to subsection306(c)(2)(B) of the Act

Changes in procedures for considering na-tional interests

(d) The lead State agency, designat-ed pursuant to subsection 306(c)(5) ofthe Act, has the responsibility for no-tifying the Assistant Administrator ofproposed changes. and requesting ap-proval of such changes. Suchrequest(s) may be made annually atthe time of reapplication for adminis-trative funding or on an as-occurringbasis. Action to implement a change

prior to its acceptance by the Assis-tant Ad ntrator as part of theState's management program mayresult in a finding that the State hasnot adhered to Its management pro-gram and is not Justified in deviatingfrom It. (See § 923.83(b)(1)(1l).) Federalconsistency does not apply until thechange is approved by the AssistantAdministrator. Use of administrativefunds to implement work tasks associ-ated with a proposed change, beforeapproval by the Assistant Administra-tor, may be disallowed upon audit ofthe program. States are encouraged touse their performance reports toinform the Assistant Administrator ina timely manner of potential changesto the management program.

(e) The lead State agency has theinitial responsibility of determiningwhether proposed changes representamendments or refinements. The as-sistant Administrator will review thisdetermination to see if It conforms tothe criteria of §§ 923.81 and 923.82 re-spectively. States are encouraged toconsult with OCZ in advance of aformal request for change(s) to ascer-tain if their determination is correct.

§ 923.81 Amendments or modifications toapproved management jprograms.

(a) Amendments (or modifications)to approved management programsmay be justified if they are In re-sponse to changes in coastal zoneneeds,- problems, Issues, priorities,social or political expectations, orother factors bearing on the relevancyand viability of a State's coastal man-agement program, provided that suchamendments/modfications are consis-tent with the findings and policies ofsection 302 and *303 of the Act andwith the requirements of section 306of the Act.

(b) Amendments or modificationswill represent one of these types ofchanges to the management program:

(1) Changes in basic program goals,objectives or policies;

(2) Changes In. techniques (forachieving goals, objectives or policies)that result in an environmentalimpact significantly different frompreviously approved techniques; or

(3) Changes in techniques (forachieving goals, objectives or policies)that result in significantly altered In-tergovernmental relationships not re-viewed by and concurred with by af-fected agencies or units of governmentat the time of proposed modification.

(c) Amendment procedure& Prior toformal submission of an amendment,the State shall inform the public aswell as affected parties of the pro-posed change in order to determinethe degree and nature of public inter-est. Following evaluation of public andprivate reactions, if a State decides toproceed with a request for a programamendment, It shall submit the follow-ing to the Assistant Administrator.

(1) A written request from the Gov-ernor for the amendment or the headof the lead State agency designatedpursuant to subsection 306(c)(5) of theAct;

(2) A description of the proposedchange;

(3) Justification for the change interms of the factors noted in (a)above;

(4) Evidence of public notice and adiscussion of the degree and nature ofpublic interest; and

(5) An environmental impact assess-ment or a determination that the pro-posed amendment will not have sig-nificantly different environmental im-pacts from the already approved man-agement program.

The Assistant Administrator thenshall review the requested change pur-suant to the requirements of subsec-tion 306(g) of the Act. Pursuant tothis section, amendments to approvedmanagement programs are to be re-viewed and approved according to thesame procedures utilized for initialmanagement program approvals. Thespecifics of these procedures are con-tained in Subpart E The AssistantAdministrator will make a case-by-casedetermination as to the necessity of is-suing an Environmental Impact State-ment (EIS) prior to approving anyamendments or modifications.

In the event an EIS is appropriate,which will be the case when changesdescribed in (b)(2) above are proposed,the review/approval procedures Ae-scribed in § 923.72 will be followed. Inthe event a determination is madethat an EIS Is not required, as may bethe case when changes described in(b)(3) above are proposed, the Assis-tant Administrator will send a copy ofthe proposed amendment(s) to rel-evant Federal agencies for their reviewand comment. Federal agencies nor-mally will have at least forty-five (45)days for review and comment. The As-sistant Administrator will considerthese comments before making a finaldecision on whether or not to approvethe requested amendment. Nhicheverreview/approval procedure is followed.notice of a decision by the AssistantAdministrator will be published in theFtDzmL R isT'mL. In the event anamendment request is not approved,the Assistant Administrator will soadvise the State in writing, includingthe reasons therefore.

(d) Comment Statutory Citation,Subsection 306(g):

Any coastal state may amend or modifythe management program which it has sub-mitted and which has been approved by theSecretary, under this section, pursuant tothe required procedures described in subsec-tion (c).

(e) Federal consistency, as providedfor in section 307 of the Act, shall notapply to proposed amendments unless


8427


and until such amendments are ap-proved, pursuant to the procedures inSubpart H, and are thereby incorpo-rated as part of the approved manage-ment program.

(f) In cases where an amendment re-lates to an already approved programgoal, objective, policy, authority orother technique and the State acts. toimplement that amendment prior toapproval by the Assistant Administra-tor, such action may represent causefor notification by the Grants Officerof intent to terminate and withdrawfinancial assistance pursuant to§ 923.83. In cases where An amendmentrelates to a new goal, objective, policyor authority not previously containedin a State's approved coastal manage-ment program, the State may initiateimplementation of such amendmentprovided it does not conflict with orcontradict any existing approved man-agement program goal, objective,policy or authority and with the un-derstanding that section 306 fundingfor and Federal consistency relative tothat amendment are not availableunless and until approval is conferred.

(g) State management programsthat have been or will be approved,pursuant to section 306 of the Act,prior to October 1, 1978, without meet-Ing the requirements of subsection305(b) (7), (8) and (9) and related§§ 923.14, 923.25 and 923.26 of theseregulations will need to be amended toincorporate these three planning re-quirements into their approved man-agement programs.

§923.82 Refinements to approved manage-ment programs.

(a) It is recognized that a coastalmanagement program is a dynamicprocess that will change over time inresponse to changing needs and condi-tions. Not all these :changes will be ofsuch a major nature to require anamendment. Accordingly, States maymake minor refinements to their man-agement programs without followingthe formal amendment proceduresspecified in § 923.81 and Subpart H.Such refinements may be made follow-ing consultation with and approval bythe Assistant Administrator.

(b) Refinements are changes relat-ing to programs or techniques for at-taining particular goals and objectivesor for implementing particulgr policies(but not changes in these goals, objec-tives or policies themselves). In addi-tion, these refinements will not havean environmental impact significantlydifferent from previously approvedprograms or techniques and will notsignificantly alter previously approvedintergovernmental arrangements withother State agencies, local govern-ments and/or Federal agencies, unlessthe affected agencies/units of govern-ment and the Assistant Administratorconcur in these alterations.

(c) States shall use the followingprocedure in making refinements totheir management programs:

(1) States shall consult with the As-sistant Administrator prior to proceed-ing with a formal request for a refine-ment to determine that the changerepresents a refinement rather. thanan amendment and that the change isboth reasonable and justifiable.

(2) Upon such a determination, theState shall submit a written requestfrom the head of the designated Stateagency which shall contain:

(1) A description of the proposedchange;

(ii) Justification for the change;(iii) Indication that the public and

affected parties have been informed ofthe proposed change and a discussionof their reactions; and

(iv) A determination that the pro-posed change will not have environ-mental impacts significantly differentfrom the already approved manage-ment program.

(v) a determination that the pro-posed refinement will not significantlyalter previously approved intergovern-mental relationships or, if there arechanges In these relationships, thatthese have been concurred with by theaffected governmental entities or leg-islatively mandated.

Upon receipt of the formal requestfor a refinement, the Assistant Admin-istrator will evaluate the supportingmaterials submitted along with the re-quest. If appropriate in the opinion ofthe Assistant Administrator, he/shewill consult with relevant Federalagencies or other interested parties.Notice of the Assistant Administra-tor's decision.will be published in theFEDERAL REGISTER. Copies of the re-finement will be sent to relevant Fed-eral agencies as a matter of course andto other parties upon request. If theAssistant Administrator disapprovesthe request, the State shall be notifiedin writing including the reasons there-for.

§ 923.83 Termination and withdrawal ofadministrative funding.

(a) In addition to the provisions con-tained in OMB Circular A-102 relatingto termination and withdrawal offunding awarded pursuant to a grantaward, the Assistant Administratormay recommend to the NOAA GrantsOffice that section 306 grant fundingbe terminated and withdrawn if theAssistant Administrator determinesthat:

(1) A State has failed or is failing toadhere to and was or is not justified indeviating from its approved manage-ment program; and

(2) That State has been providednotice of intent to terminate and with-draw funding; and

(3) That State has been provided anopportunity to demonstrate adher-

ence, or justification for program al-teration or modification.

(b) Comment. Statutory Citation,Subsection 312(b):

The Secretary shall have the authority toterminate any financial assistance extendedunder section 306 and to withdraw any un.expended portion of such assistance ,i (1)he determines that the state Is failing toadhere to and s'not Justified In deviatingfrom the program approved by the Secre.tary; and (2) the state has been given noticeof the proposed termination and withdrawaland given an opportunity to present evi-dence of adherence or Justification for alter-ing its program.

(1) Situations which may lead tonotice of intent to terminate and with.draw funding include:

(i) In evaluating a State's perfor-mance as part of the continuing reviewfunction pursuant to section 312 ofthe Act, the Assistant Administratordetermines that the State has not ad-hered to Its management program ap-proved pursuant to section 306 of theAct, and such lack of adherence Is notjustified; or

(ii) In going through the amend-ment process where the amendmentrelates to a previously approved pro-gram goal, objective, policy, authorityor other technique, a State acts to im-plement that amendment prior to ap-proval by the Assistant Administrator.

(2) In the event there is cause forterminating and withdrawing section306 funding, notice in the form ofwritten documents from the AssistantAdministrator and the NOAA GrantsOfficer to the Governor of the Statein ,question or the head of the desig-nated State agency shall be providedadvising of the intent to terminate anapproved grant and to withdraw anyunexpected portions of funding assis-tance. Included in this notice will bethe reasons for the proposed termina-tion afd withdrawal of funds as wellas notice of opportunity for the Stateto present evidence of adherence orjustification for alteration or refine-ment of its program. Such opportunityto present evidence as referred to insubsection 312(b) of the Act shall con-sist of a thirty day period, commenc-ing on a receipt of notice, withinwhich the State may respond by pro-viding written materials demonstrat-ing adherence to or justification forrefining or modifying Its program.Within this thirty day period, a Statemay request additional time beyondthe thirty day period to present evi.dence of adherence or justification foralteration or refinement. Such addi-tional time shall not extend beyond asubsequent thirty days from the ter-mination of the first thirty day period.In total then, a State may have amaximum of sixty days, from receiptof notice, in which to espond. Follow-ing receipt and evaluation of a State'sevidence with respect to adherence or

FEDERAL REGISTER, VOL 43, NO. 41--WEDNESDAY, MARCH 1, 1978

8428


justification for alteration, a final de-termination Shall be made by NOAAwith respect to termination and with-drawal of funding assistance. If termi-nation and withdrawal of funding isdeemed appropriate, the NOAAGrants Office shall take appropriateaction to terminate or withdraw funds.If funding is terminated and with-drawn pursuant to this section, noticeshall be placed in the FEDERAL REGIS-m. Once funding is terminated andwithdrawn pursuant to this section,Federal consistency pursuant to sec-tion 307 of the Act shall cease to applyto that State's program.

Subpart 1-Appllcaflons for ProgramDevelopment or Implementation Grants

§923.90 General.(a) The primary purpose of develop-

ment grants made pursuant to section305 of the Act is to assist coastalStates in the development of compre-hensive coastal management programsthat can be approved by the AssistantAdministrator. The primary purposeof implementation grants made pursu-ant to section 306 of the Act is toassist coastal States in implementingcoastal management programs follow-ing their approval by the Assistant Ad-ministrator. The purpose of the guide-lines in this subpart J is to define theprocedures by. which grantees applyfor and administer grants under theAct. These guidelines shall be usedand interpreted in conjunction withthe Grants Management Manualunder the Coastal 'Zone ManagementAct, hereinafter referred to as the"Manual."

(b) The Manual incorporates a widerange of Federal requirements, includ-ing those of the Office of Managementand Budget, the General .Services Ad-ministration, the Department of theTreasury, the General AccountingOffice and the Department of Com-merce. In addition to specific policy re-quirements of these agencies, theManual includes recommended poli-cies and procedures for grantees to usein submitting a grant application.

(c) Grants awarded to a State mustbe expended for the development oradministration, as appropriate, of amanagement program that meets therequirements of the Act.

(d) -Grants shall not exceed eightyper cent of the annual total cost of theprogram.

(e) For purposes of this -ubpart, theterm "'development grant" means agrant awarded pursuant to subsection305(a) of the Act. "Administrativegrant" and "implementation grant"are used interchangeably and meangrants -awarded pursuant to subsec-tions 306 (a) or (h) of the Act.

§ 923.91 Administration of the program.The Congress assigned the responsi-

bility for the administration of the Act

to the Secretary of Commerce whohas designated NOAA to manage theprogram. NOAA has established theOffice of Coastal Zone Managementfor this purpose. All application andpreapplication forms are to be request-ed from and submitted to:Natlonal Oceanic and Atmospheric Adminis-

tration. Office of Coastal Zone Manage-ment, Grants and Loans, Operatlo.Staff. 3300 Whitehaven Street NW..Washington. D.C. 20235.

§ 923.92 State responsibility.(a) Applications for program admin-

istrative grants shall be submitted bythe Governor of a participating Stateor by the head of the State agency orentity designated by the Governorpursuant to subsection 306(c)(5) of theAct.

(b) In the case of a section 305 grant.the application shall designate a singleState official, agency or entity to re-ceive development grants and to be re-sponsible for development of theState's coastal management program.The designee need not be that agency.designated by the Governor pursuantto subsection 306(c)(5) of the Act asthe single agency to receive and ad-minister implementation grants.

(c) One State application will coverall program activities for which fundsunder this Act and matching Statefunds are provided, Irrespective ofwhether these activities will be carriedout by State agencies, areawide or re-gional agencies, local governments, orinterstate entities.

(d) The designated State entity isfiscally responsible for all expendi-tures made under the grant, includingexpenditures by subgrantees and con-tractors.

§ 923.93 Allocation.(a) A State may allocate a portion or

portions of its grant to other Stateagencies, local governments. areawideor regional agencies, interstate enti-ties, or Indian tribes if the work toresult from such allocation(s) contrib-utes to the effective development orimplementation of the State's manage-ment program.

(b) Local governments. Should aState desire to allocate a portion of itsdevelopment grant to a local govern-ment, pursuant to the provisions ofsubsection 305(g) of the Act, units ofgeneral-purpose local government arepreferred over special-purpose units oflocal government, pursuant to section402 of the Intergovernmental Cooper-ation Act of 1968.

(c) Local gorernments. Where aState will be relying on direct Statecontrols as provided for In subsection306(e)(1)(B) of the Act. pass-throughsto local governments for local plan-ning, regulatory or administrative ef-forts under a section 306 grant cannotbe made, unless they are subject to

adequate State overview and are partof the approved management pro-gram. Where the approved manage-ment program provides for specifiedlocal activities or one-time projects,again subject to adequate State over-view, then a proportional amount ofadministrative grant funds can be allo-cated to local governments.

(d) Areaw-ide agencies If a Statewishes, it may allocate a portion of itsadministrative grant to an areawideagency, and absent State law to thecontrary, preference shall be given tothose agencies recognized or designat-ed as areawide comprehensive plan-ning or development agencies underthe provisions of the Office of Man-agement and Budget Circular No. A-95, under section 204 of the Demon-stration Cities and Metropolitan De-velopment Act of 1966.

(e) Indian Tribem. In furtherance ofthe policy enunciated in § 923.33(e). in-dividual tribes or groups of tribes maybe considered regional agencies andmay be allocated a portion of a State'sgrant in the form of a contract or sub-grant for the development of indepen-dent tribal coastal management pro-grams or the implementation of specif-Ic management projects provided that:

(1) The State certifies that suchtribal programs Dr projects are com-patible with Its approved coastal man-agement policies; and

(2) On excluded tribal lands, theState demonstrates that the tribalprogram or project would or could di-rectly affect the State's coastal zone.

(f) Comment Statutory Citation,Subsection 305(g):

With the approval of the Secretary, anycoastal state may allocate to any local gov-eminent. to any areawide agency designatedunder section 204 of the DemonstrationCities and Metropolitan Development Act of1966. to any regional agency, or to any in-terstate agency, a portion of any grant re-ceived by It under this section for the pur-pose of carrying out the provisions of thissection.

(g) Comment. Statutory Citation,Subsection 306(f):

With the approval of the Secretary, astate may allocate to a local government, anareawide agency designated under section204 Demonstration Cities and MetropolitanDevelopment Act of 1966. a regional agency,or an Interstate agency, a portion of thegrant under this section for the purpose ofcarrying out the provisions of this section:Provided, that such allocation shall not re-lieve the state of the responsibility of ensur-Ing that any funds so allocated are appliedin furtherance of such state's approvedmanagement program.

§ 923.94 Geographic segments.(a) Application procedures for a

grant to be awarded pursuant to sub-section 306(h) of the Act for a geo-graphic segment of a State's coastalzone are the same as thoseset forth inthis subpart for a grant to administer

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MAR04 1, 1978

8429


the approved management program ofthe entire coastal zone of a State.

(b) When a State has a program fora geographic segment of its coastalzone approved pursuant to subsection306(h) of the Act, that portion of aState's coastal zone not awarded seg-ment approval will continue to be eli-gible for section 305 grants until au-thorization for such funds terminates.

§ 923.95 Eligible implementation costs.

(a) Costs claimed must be beneficialand necessary to the objectives of thegrant project. As used herein theterms cost and grant project pertain toboth the Federal and the matchingshare. Allowability of costs will be de-termined in accordance with the provi-sions of Federal Management Circular(FMC) 74-4: Cost Principles Applica-ble to Grants and Contracts withState and Local Governments.

(b) Federal funds awarded pursuantto section 306 of the Act may not beused for land acquisition purposes andmay not be used for construction pur-poses except as described in paragraph(e) below.

(c) The primary purpose for whichimplementation funds, pursuant tosection 306 of the Act, are to be used isto assure effective implementation andadministration of the managementprogram, including especially adminis-trative actions to carry out and en-force program policies, authorities andother management techniques.

(d) Additional purposes to whichStates are encouraged to apply imple-mentation funding are those that re-solve coastal problems and issues inwhich there are national interests in-cluding fisheries management, reduc-tion of losses due to coastal hazards,protection of natural resources, sitingof energy facilities, provision of accessto and use of the shorefront andurban waterfronts.

(e) Still other purposes to which im-plementation funding may be appliedinclude the management of designatedareas of particular concern, especiallyareas designated for preservation orrestoration purposes, consistent withthe national policies of the Act andthe policies in a State's managementprogram. Preservation and restorationprojects involving expendable materi-als (as for example, seeds to be used asa non-structural erosion control tech-nique or, for another example, materi-als to restore lighthouses designatedas areas for restoration) may befunded for areas designated for preser-vation or restoration pursuant to§§ 923.21 or 923.24. All costs associatedwith such projects may not exceed atotal of $50,000 per grant, except inthe case of a demonstration grantwhich may be negotiated with and ap-proved by the Assistant Administrator.In addition the following conditionsmust be met:

(1) The project must be consistentwith and fulfill the objectives of a re-lated policy (or policies) in the State'smanagement program;

(2) Basic program administration re-quirements discussed in paragraph (c)are provided for,

(3) No other sources of funding arereadily available; and

(4) An explanation is provided ofhow the area will be maintained andoperated once preserved or restored.

(f) Section 306 funding in support ofany of these purposes, except as limit-ed in paragraph (e) above, may beused to fund:

(1) Personnel costs,(2) Supplies and overhead,(3) Equipment (subject to the limita-

tions in paragraph (g) below), and(4) Feasibility studies and prelimi-

nary engineering reports. A feasibilitystudy is defined as a document, inde-pendent of a particular design solutionfor a project, which presents an analy-sis of the economic praticality of theproject. A preliminary engineeringreport is defined as a document whichpresents both engineering criteria, isufficient detail to form the basis forthe preparation of final design docu-ments and detailed engineering costestimates. Detailed architectural draw-ings and engineering specifications arenot eligible costs unless directly relat-ed to preservation and restoration pro-jects discussed in (e) above.. (g) Equipment purchases of more

than one thousand (1,000) dollars peritem require NOAA approval prior topurchase. Such purchases may bedeemed eligible costs if the State:

(1) Has examined lease, rental orother non-purchase alternatives andpurchase represents an equal or lessercost alternative, and

(2) The equipment is essential tomanagement activities that are antici-pated to continue for more than 1year.

(h) States are encouraged to coordi-nate administrative funding requestswith funding possibilities pursuant tosections 308, 309, 310 and 315 of theAct. When in doubt as to the appropri-ate section of the Act under which torequest finding, States should consultwith OCZM. States should consultwith OCZM on technical aspects ofconsolidating requests into a single ap-plication.

§923.96 Application for initial programdevelopment or implementation grants.

(a) The form SF-424, Preapplicationfor Federal Assistance, may be used atthe applicant's option. If used, thePreapplication form should be submit-ted 120 days prior to the beginningdate of the requested grant. Thepreapplication shall include documen-tation, signed by the Governor, desig-nating. the State office, agency orentity to apply for and administer the

grant. Copies of the approved manage-ment program are not required.

(b) All applications are subject tothe provisions of OMB Circular A-95(revised). The Form SF-424, Preappll-cation for Federal Assistance, will betransmitted to the appropriateclearinghouses at the time it is submit-ted to OCZM.The Preapplication form shall includean attachment indicating the datecopies of the preapplication form Veresubmitted to the State and areawideclearinghouses. The Preapplicationform may be used to meet the projectnotification and review requirement ofOMB Circular A-95 with the concur-rence of the appropriate clearing.houses. In the absence of such concur-rence, the project notification andreview procedures established by Stateand areawide clearinghouses should beimplemented simultaneously with thedistribution of the Preapplicationform.

(c) The Form SF-424, Applicationfor Federal Assistance (Non-Construc-tion Programs) constitutes the formalapplication and must be submitted 60days prior to the desired grant begin.ning date. The application must be ac-companied by evidence of compliancewith A-95 requirements including theresolution of any problems raised bythe proposed project. OCZM will notaccept applications substantially defi-cient in adherence to A-95 require-ments.

(d) Costs claimed as charges to thegrant project must be beneficial andnecessary to the objectives of thegrant project. As used herein, theterms "cost" and "grant project" per-tain to both the Federal grant and thematching share. Allowability of costswill be determined in accordance withthe provisions of FMC 74-4: Cost Prin.ciples Applicable to Grants and Con-tracts with State and Local Govern-ments.

(e) In Part IV-Program Narrativeof the Form SF-424, the applicantshall describe clearly and briefly theactivities that will be undertaken withgrant funds in support of implementa-tion and administration of the man-agement program. This descriptionshall include:

(1) An identification of those ele-ments of the approved managementprogram that are to be supported inwhole or in part by the Federal andthe matching share,

(2) A clear statement of the majortasks required to implement each ele-ment,

(3) For each task:(i) Specify how It will be accom-

plished and by whom;(ii) Identify any subgrantees or con-

tractors that will be allocated respon-sibility for carrying out all or portionsof the task, and indicate the estimatedcost of the subgrant or contract for


8430


each allocation. Identify, if any, thatportion of the task that will be carriedout under contract with private firmsor individuals and indicate the esti-mated cost of such contract(s);- (iii) Indicate the estimated totalcost. Also indicate the estimated totalperson-months if any, allocated to thetask from the applicant's staff;

(iv) Indicate the percent estimatedto be completed during the grantperiod.

(4) The sum of all task costs in sub-:paragraph (3) above should equal thetotal estimated grant project cost.

(5) Using two categories, Profession-al and Clerical, indicate the totalnumber of personnel in each categoryon the applicant's staff that ill be as-signed to the grant project. Also indi-cato the nuniber assigned full timeand the number assigned less than fulltime in the two categories. Additional-ly, indicate the number of new posi-tions created in the two categories as a

.result of the grant project.(f) In addition to the requirements

of paragraphs (a)-(e) above, Part TV-Program Narrative for an initial sec-tion 305 program development grantmust contain the following*

-1) A summary of the State's pastand current activities in its coastalzone and a description of the'currentstatus of coastal management and re-lated activities;

(2) A discussion and -ranking by gen-eral order of importance of the majorcoastal zone related problems andissues facing the State;

(3) An identification of the goals theState expects to achieve by develop-ment of its coastal management pro-gram, and the objectives it has set tomeet these goals; and

(4) A description of the overall pro-gram design for developing the man-agement program. This should be anoutline of the State's plan of action,identifying the work necessary to de-velop an approvable management pro-gram. The applicant should describe inbrief and concise terms how the over-all program design is intended to meetthe requirements set forth in SubpartsA-F of these regulations. Specifically,the program design shall include:

i) An identification of existing in-formation and sources of information;

(ii) A projection as to additional 'in-formation needed;

(iii) A description of methods forpublic participation;

tiv) A description of the processes bywhich the State intends to involve var-ious levels of government in the devel-opment of the management program;and

(v) An identification of any otherFederal or State plan, program or ac-tivity which may have a significantimpact on the State's coastal zone. Asit is developed, the coastal manage-ment program should include methods

to coordinate federally assisted pro-grams, pursuant to the requirementsof § 923.56.

§923.97 Applications for subsequent pro-gram development grants.

(a) Subsequent development grantswill follow the procedures set forth in§923.96 (a), (b), (c), and (e) exceptthat the preappllcation form may beused at the option of the applicant. Ifused, the procedures set forth in§923.96(a) will be followed. In anyevent, the A-95 project notificationand review procedures established byState and areawide clearinghousesshall be followed. Additionally, theprogram design (§ 923.96 (fX4)) shallbe updated to:

<1) Describe the anticipated designand content of the management pro-gram, including the major Issues theprogram will address, and the policiesand management techniques that willbe proposed to address these issues,

(2) Describe how the past year'swork contributed to the accomplish-ment of the overall program designand specifically to meeting the re-quirements for program approval;

(3) Examine and assess the need, ifany, to modify the overall programdesign or the program's goals and ob-Jectives or both in view of the above orany emerging opportunities or prob-lems; and

(4) Indicate when the State willsubmit a management program to theAssistant Administrator for review andfinal approval pursuant to section 306of the Act or for preliminary approvalpursuant to subsection 305(d) of theAct.

(b) In evaluating whether a State ismaking satisfactory progress towardscompletion of an approvable manage-ment program which Is necessary toestablish eligibility for subsequentgrants, the Assistant Administratorwill consider:.

(1) The progress made towards meet-ing management program goals andobjectives;

(2) The progress demonstrated incompleting the past year's work pro-gram;

(3) The cumulative progress towardsmeeting the requirements for prelimi-nary or final approval of a coastalmanagement program;

(4) The applicability of the proposedwork program to fulfillment of the re-quirements for final approval; and

(5) The effectiveness of mechanismsfor insuring public participation andconsultation with affected Federal.State, regional and local agencies Inprogram development.

§ 923.98 Applications for subsequent pro-gram Implementation grants.

Second and subsequent year applica-tions will follow the procedures setforth in § 923.96 (a), b), (c) and (e)except that:

(1) The Preapplication form may beused at the option of the applicant. Ifused, the procedures set forth in§ 923.96 (a) shall be followed;

(2) The Governor's document desig-nating the State agency to receive andadminister the grant is not requiredunless there has been an approvedchange of designation; and

(3) Copies of the approved manage-ment program and approved changesare not required.

§ 923.99' Applications for preliminary ap-proval grants.

(a) The primary purposes of prelimi-nary approval grants are to assist aState in insuring ultimate implemen-tation of a fully developed programdesign and to provide for initial imple-mentation of approved managementelements. Additionally, subsection305(d) funding may be used to meetthe requirements of subsection 305(b)(7), (8), and (9). The purpose of theseguidelines is to define the proceduresby which grantees apply for and ad-minister grants under the Act.

(b) No subsection 305(d) grant willbe made after September 30, 1979.

(c) The Form SF-424, Applicationfor Federal Assistance (Non-Construc-tion Programs), constitutes the formalapplication and must be submitted 60days prior to the desired grant begin-ning date. The application must be ac-companied by evidence of compliancewith A-95 requirements including theresolution of any problems raised bythe proposed project. The AssistantAdministrator will not accept applica-tions substantially deficient in adher-ence to A-95 requirements.(d) In Part IV, Program Narrative of

the Form SF 424, the applicant shouldrespond to the following requirements:

(1) Set forth a work program de-scribing the activities to be undertak-en during the grant period. This workprogram shall include:

(I) A precise description of eachmajor task to be undertaken to resolvesection 306 deficiencies, and a specifictimetable for remedying these deft-clences;

(i) A precise description of imple-mentation activities for approved man-agement components, including a dem-onstration that these implementation7funds will not be applied outside theapproved coastal management bound-aries,

(Il1) A precise description of anyother tasks necessary for and allowa-ble under subsection 305(d);

(Gv) For each task, Identify any"Other Entities," as defined in the"Manual," that will be allocated re-sponsibility for carrying out all or por-tions of the tasks, and indicate the es-timated cost of the subcontract foreach allocation. Identify, if any, thatportion of the task that will be carriedout under contract with consultants


8431


and indicate the estimated cost ofsuch contract(s); and

(v) For each task, indicate the esti-mated total cost. Also, indicate the es-timated total months of effort, if any,allocated to the task from the appli-cant's staff.

(2) The sum of all task cost in theabove paragraph should equal thetotal estimated grant project cost.

(3) Using two categories, Profession-al and Clerical, indicate the totalnumber of personnel in each categoryon the applicant's staff that will be as-signed to the grant project. Also indi-cate the number assigned full timeand the number assigned less than fulltime in the two categories. Additional-ly, indicate the number of new posi-tions created in the two categories as aresult of the grant project.

§ 923.100 Application for three new plan-ning elements.

(a) For those States receiving pro-gram development grants up to Octo-ber 1, 1979, pursuant to subsections305(c) or 305(d), the -work programand funding request for the subsection305(b) (7), (8), and (9) planning ele-ments should be developed as part ofthe overall work program and grantapplication pursuant to the proce-dures contained in § 923.96 for subsec-tion 305(c) gr4nts or pursuant to§ 923.99 for subsection 305(d) grants.

(b) For States that have an approvedmanagement program or will have anapproved management program by Oc-tober 1, 1978, those States may receiveprogram development grants for the

express purpose only of fulfilling thesubsection 305(b) (7), (8), and (9) re-quirements prior to October 1, 1978.States with program approved prior toor by October 1, 1978, must fulfillthese three requirements by that date..States with program implementationgrants which also wish to receive theprogram development grants for thisspecified purpose and within the speci-fied time limit may make applicationfor section 305 planning funds and sec-tion 306 implementation funds using asingle application form. The worktasks and costs associated with thenew planning elements must be clearlyand separately identified. Statesshould consult with the Assistant Ad-ministrator for detailed guidance onthe preparation and content of a com-bined application. Alternatively Statesmay makd two separate applications-one following the requirements setforth in § 923.96 for section 305 grantsand one following the application re-quirements in § 923.96 for section 306administrative grants.

(c) Comment. Statutory Citation,Subsection 305(h):Whenever the Secretary approves the man-agement program of any coastal Stateunder section 306, such State thereafter (1)shall not be eligible for grants under thissection except that such State may receivegrants under subsection (c) in order tocomply with the requirements of Para-graphs (7), (8), and (9) of subsection (b)

§ 923.101 Approval of applications.(a) The application for a grant by

any coastal State which complies with

the policies and requirements of theAct and these guidelines shall be ap-proved by the Assistant Administrator,assuming available funding.

(b) Should an application be founddeficient, the Assistant Administratorwill notify the applicant in writing,setting forth in detail the manner inwhich the application fails to conformto the requirements of the Act orthese regulations. Conferences may beheld on these matters. Corrections oradjustments to the application willprovide the basis for resubmittal ofthe application for further consider-ation and review.

(c) The Assistant Administratormay, upon finding of extenuating cir-cumstances relating to applications forassistance, waive appropriate adminis-trative requirements contained In thissubpart.

§ 923.102 Grant amendments.

Amendments to a grant award mustbe submitted to, and approved by, theAssistant Administrator prior to initi-ation of the contemplated change. Re-quests for substantial changes shouldbe discussed with the Assistant Admin-istrator well in advance. The granteeshall be notified within 30 days fromdate of receipt of the request whetherthe grant amendment has been ap-proved or if It still is under consider-ation and when the grantee mayexpect a decision. All amendments tothe grant must be approved In writingby the NOAA Grants Officer.

[FR Doc. 78-5161 Filed 2-28-78; 8:45 am]


8432

WEDNESDAY, MARCHPART III

= =

-

DEPARTMENTHOUSING

AND URBANDEVELOPMENT

Office% Assistant

of theSecretary

Community PlanningDevelopment

COMMUNITYDEVELOPMENT

BLOCK GRANTS

Eligible Activities

- ,= 7|

1978

OF

forand

8434

[4210-01]

Title 24-Housing and Urban Development

CHAPTER V-OFFICE OF THE ASSISTANT SEC-RETARY FOR COMMUNITY PLANNING ANDDEVELOPMENT, DEPARTMENT OF HOUSINGAND URBAN DEVELOPMENT

- EDocket No. R-78-4713

PART 570-COMMUNITY DEVELOPMENTBLOCK GRANTS

Subpart C-ElIgible Activities

AGENCY: Department of Housingand Urban Development.ACTION: Final rulemaking.SUMMARY: HUD is,issuing final ruleson Subpart C of the regulations gov-erning eligible activities for the com-munity development block grant pro-gram under Title I of the Housing andCommunity Development Act of 1974,as amended. Rules governing the eligi-bility of activities have been revisedfor clarity and to incorporate new ac-tivities authorized by Title I of theHousing and Community DevelopmentAct of 1977.EFFECTIVE DATE: March 1, 1978.FOR FURTHER INFORMATIONCONTACT:

William Hammer, Prograin -Stan-dards Division, Office of CommunityPlanning and Development, Depart-ment of Housing and Urban Devel-opment, Washington, -D.C. 20410,202-755-6304.

SUPPLEMENTARY INFORMATION:On October 25, 1977 (42 FR 56540)proposed revisions to Subpart C werepublished in the FEDERAL REGISTER for'public comment. Interested partieswere given until November 25, 1977, tosubmit written comments. All com-ments received with respect to theproposed rules governing eligible ac-tivities in Subpart C were given dueconsideration. As a result of the com-ments received, the following changeswere made:

GENERAL POLICIES

Based upon several suggestions con-tained in comments on the proposedregulations, a number of changes weremade to the general policies governingeligible activities.

Paragraph (a) of § 570.200 was re-vised to indicate that activities must

•comply with the general purposes ofthe block grant program and program

-requirements as they apply specifical-ly for entitlement applicants in Sub-part D, applicants under the Secre-tary's Fund in Subpart E, Small City

tapplicants in Subpart F, or Urban De-velopment Action Grant applicants-inSubpart G. The principal purpose ofthis paragraph is to serve as a remind-er that activities may be funded onlywhere the eligibility requirements of


this subpart and other specific re-quirements for each type of applicantcontained in Subparts D, E, F, or Gare met. The paragraph is not intend-ed to replace or modify those require-ments, but to direct attention to thefact that there are other requirementsthat must also be met.

URB1AN DEVELOPMENT ACTION GRANT

-The eligibility of activities under theUrban Development Action Grant(UDAG) program has been changed inparagraph (b) of § 570.200 in accor-dance with several comments. First, ithas been made clear that UDAG fundsmay be used for new housing construc-tion. Secondly, the rules governing in-eligible activities set forth in § 570.207do apply to the UDAG program. WhenHUD exercises the special authorityset forth in § 570.453 which permits afinding that activities are consistentwith the statutory objectives, forUDAG, this special authority is notlimited by § 570.207 and activitieswhich might normally be deemed in-eligible for block grant funding maynonetheless be authorized by HUD.

MODEL CITIES ACTIVITIES

In response to several questionsraised by the comments, paragraph (c)of § 570.200 has been revised to indi-cate that once the special authorityfor previous model cities activities hasexpired, old model cities activitiesmust then meet the regular eligibilityrequirements of Subpart C in order tobe eligible to continue to receive blockgrant funds.

ACTIVITIES OUTSIDE OF AN APPLICANT'SBOUNDARIES

Several comments requested clarifi-cation of th6 provisions governing theuse of block grant funds outside of anapplicant's boundaries. The generalrule is that the undertaking of an ac-tivity by an applicant outside of itsboundaries is permissible so long as itis not plainly inappropriate to meetingthe applicant's identified, needs or in- -consistent with State or local law.

SPECIAL ASSESSMENTS

There were a number of commentsdirected at the issue of special assess-ments under the block grant program.Section 570.206(h) of the proposedregulations has been deleted and anew paragraph (f) of § 570.200 hasbeen added regarding special assess-ments.

A new paragraph (f)(1) contains adefinition of "special assessments"which makes clear that the term is di-rected toward fees charged for thecapital cost of installation of publicimprovements and is not related toproperty taxation or determination ofproperty values for the purposes oftaxation.

Paragraph (f)(2) establishes a gener-al rule that no special assessmentsmay be levied which would recoverany costs of a public improvement pro-vided with block grant funds. Charg-ing low- and moderate-income personsfor improvements provided with blockgrant funds Is contrary to the basicpurposes of the program.

The paragraph does provide thatHUD may grant applicants exceptionsto the general rule to permit sriecialassessments to be levied against prop-erties as a means of leveraging privateinvestment to implement strategies foreconomic development or neighbor-hood revitalization so long as no spe.cial assessments are levied againstproperties owned and occupied by low-and moderate-income persons and anyblock grant funds which are recoveredare treated as program Income.

Paragraph (f)(3) indicates thatwhere eligible public improvementsare provided from local revenuesources Which will be reimbursedthrough special assessments, blockgrant funds may be used to pay thespecial assessments in behalf of low-and moderate-income propertyowners. In order for special assess-ments to be paid with block grantfunds, the public Improvements mustbe identified in the Community Devel-opmient Program, and have bden initi-ated on or after the effective date ofthese regulations. Applicants whichpropose to pay special assessmentswith block grant funds must carry outthe appropriate environmental reviewsand clearances for the public Improve-ment under 24 CFR Part 58.

CONSULTANT ACTIVITIES

Paragraph (g) of § 570,200 regardingconsultant fees received a great deal ofcomment. The limitation on consul-tant fees was prescribed by statute insection 409 of Department of Housingand Urban Development IndependentAgencies Appropriation Act, 1978(Pub. L. 95-119). Therefore, there is noalternative to the GS-18 limitation oncompensation of consultants which isrequired by statute. The current rateof compensation under Federal law fora GS-18 is $47,500 per year, with adaily rate calculated to be $182.68.. Any contract with a consultant shall

provide that each person acting as aconsultant or employed by a consult-ing firm shall not be compensated atmore than a reasonable rate whichmay not exceed the statutory maxi-mum. Further, contracts for such ser-vices shall specify that the amounts ofcompensation and payments to a con-sultant shall be subject to adjustmentwhere monitpring reviews or audits in-dicate that personal services were com-pensated at greater than a reasonablerate.


TRANSITION POLICY FOR FISCAL YEAR1978

A number of activifies contained inSubpart C contain, as a part of theirrequirements for eligibility, a relation-ship to the strategy statements. Otheractivities are to be located in or serve aNeighborhood Strategy Area (NSA),which is the term now used instead ofComprehensive Neighborhood Revital-ization Area described in Subpart D ofthe prop6sed regulations.

Since many applications will be re-ceived prior to the effective date ofthat subpart, paragraph (h)(1) of§ 570.200 sets forth an interim policyto enable applicants to undertakethese activities prior to the submissionof the three year strategy statements.

Applicants desiring to carry outthese activities during fiscal year 1978shall submit a brief narrative interimpolicy description. This will includefor each proposed activity requiring arelationship to a strategy statement, abrief description of the activity, theneeds and conditions that the activityis designed to address, and how the ac-tivity will impact on those needs andconditions.

Paragraph (h)(2) sets forth provi-sions for designation of interim NSA's.H=D agreed with the comments thatthe definition of ComprehensiveNeighboorhood Revitalization Areacontained in the proposed rules wastoo stringently defined and will usethe term. "Neighborhood StrategyArea (NSA)" in lieu of ComprehensiveNeighborhood , Revitalization Area.NSA is more broadly defined than theprevious term. For example, the threeto five year limit on substantiallymeeting the needs of the area is nolonger used. As it is now defined, theterm also provides greater flexibilityand is applicable to varied local condi-tions. If the applicant concentratesphysical development activities in agiven area in a manner consistent withthe statutory requirements for publicservices described in § 570.201(e), thearea should meet the revised defini-tion for an NSA. Upon the issuance offinal regulations governing Subpart D,the preamble will further describethese changes.

The paragraph further describes theinterim NSA designation that may be

* used ddhng fiscal year 1978 prior tothe adoption of final rules governingSubpart D. The interim NSA's are des-ignated by the applicant. A brief nar-rative descriftion of the applicant'splans for activities in the NSA shouldbe included.

ACQUISITION OF REAL PROPERTY

In response to one comment, para-graph (a) of § 570.201 has beenchanged to make clear that rights-of-way and easements may be purchasedwith block grant funds.

Paragraph (a)(5) includes a secondexample of acquisition for other public


purposes which is acquisition of landfor development of low- and moderate-income housing.

There were a number of commentsregarding the example contained inparagraph (a)(5). This example was In-tended as only one among many legiti-mate public purposes for which blockgrant funds may be used and MID hasdecided to retain the example. Centralcities might decide to acquire existinghousing within their jurisdictions oroutside at their own discretion, pursu-ant to State and local law, as means toimplement strategies for spatial decon-centration. This example was cited forillustrative purposes in response toquestions about such undertakingswhich have arisen several times In thepast. HUD wished to clarify that fundsmay be used in this manner. Appli-cants have full discretion to decidewhether to employ such a mechanismand to formulate appropriate meansfor such an undertaking with adjoin-ing jurisdictions.

NEIGHBORHOOD FAcrIITIES

Paragraph (c)(4) has been revised asa result of comments to delete the ref-erence to a specific 51 percent require-ment. The 51 percent rule was per-ceived to imply that some form ofquantitative measurement would benecessary. This was not intended andthe requirement has been deleted.Neighborhbod facilities shall be pri-marily designed to meet the needs ofneighborhood residents. This does notpreclude incidental use of neighbor-hood facilities by non-residents.

Paragraph (c)(4)(i) has been,changed to indicate that a neighbor-hood facility may serve an area locallydesignated as a neighborhood.

Paragraph (c)(4)(l1) has been revisedto include small cities of 25.000 popu-lation or under as the equivalent of aneighborhood. The increase from10,000 to 25,000 population has corre-spondingly been revised in§ 570.207(a)(2)(i).

SOLID WASTE DISPOSAL FACILITIES

There were a number of commentsregarding solid, waste disposa facili-ties. The facilities eligible for assis-tance quite simply do not include theuse of block grant funds for the initialcollection of solid waste. Items such asgarbage collection trucks and trashcollection receptacles are not eligible.Similarly, using block grant funds toprovide solid waste collection servicesunder this paragraph is not eligible.Paragraph (c)(5)(Hl) accordingly re-flects that Initial collection of solidwaste is not eligible.

Sites, fixtures, and equipment usedafter the final collection process areeligible. This may Include incineratorsor sanitary land fills and their appur-tenances. Similarly, intermediatetransfer sites, fixtures, and equipment

8435

are also eligible for block grant fund-ng.

Solid waste disposal facilities mustserve areas where activities included inthe Community Development Pro-gram are being carried out, such asneighborhood strategy areas. Para-graph (c)(5)(1) Implements this re-quirement. The reference to being lo-cated in such an area should not betaken as encouragement for the loca-tion of solid waste facilities in residen-tial neighborhoods.

FIRE Pno~rcrrox AND PAX GFACrrrS

Paragraphs (c) (6) and (7) of§ 570.201 have been changed pursuantto comments to provide that such fa-cities must be located in or serveareas where activities listed in theCommunity Development Program arebeing carried out, such as Neighbor-hood Strategy Areas.

STREET IMPROvEMrs

Several comments suggested thatcurbs, gutters, and sidewalks be men-tioned specifically. Paragraph (c)(9) of§ 570.201 has been changed according-ly.

REcREATION FAcInLIS

Several comments questionedwhether any spectator facilities couldbe provided as an incidental part of re-creation facilities authorized by para-graph (c)(2) of § 570.201. which is sub-stantially Identical to the rule in effectfor the past three years. It would cer-tainly be permissible to provide limit-ed seating space for spectators at rec-reational facilities. For example, somelimited seating facilities at a softballfield which are incidental to the pri-mary use for persons to participatewould be permissible, whereas a facili-ty with seating accommodations forseveral hundred or more persons towatch competitive sports such as highschool football is more properly con-sidered an ineligible spectator facility.

OrE PUBLIC FACILITIES ANDIMPROVEMMM

Paragraph (c)(14) of § 570.201 pro-vides that public facilities and im-provements other than those listed in§ 570.201(c) may be assisted wherethey are necessary and appropriate toimplement an applicant's strategy forneighborhood revitalization or hous-ing. General municipal buildingswhich are described as ineligible in§ 570.207(aX)1 will not be authorized.Applicants must submit to HUD a de-scription of the proposed facility orimprovement and Its relationship tothe applicant's strategy. In authoriz-Ing activities under this provisionHUD will consider the amount ofbenefit to low- and moderate-incomepersons which results, the degree of



impact on the identified needs of, theapplicant, and the availability of otherFederal funds for the activity.

PUBLIC SERVICES

Quite a number of comments werereceived regarding public services. Thestatutory requirements governing ser-vices are very specific and HUD islimited by those requirements. Para-graph (e) of § 570.201 has been revisedpursuant to comments as follows:

First, the introductory paragraph in-dicates that a service must meet fivecriteria to be eligible for funding.

Paragraph (e)(1) has been changedto delete the word "must" which con-veyed the impression that services arerequired to be provided. Rather, theprovision of eligible services is at theoption of the applicant, but can beprovided in a Neighborhood StrategyArea where there is the required con-centration of block grant funded com-munity development activities. I

The proposed rule stated that publicservices must be provided for residentsof Comprehensive Neighborhood Revi-talizatiojn ior similar areas. Analysis ofthe comments showed two major areasof concern. Many comments indicatedthat public services should be permit-ted anywhere in the locality so long asthe services benefitted low- and mod-erate-income persons. Others felt thedefinition of Comprehensive Neigh-borhood Revitalization Areas was toorestrictive and expressed concern thatthe definition would limit activities toareas which were very small or in rela-tively good condition, thus preventingapplicants from undertaking compre-hensive programs in areas of greatestneed or designating areas largeenough for public services to be pro-vided in an economical and effectivemanner.

The final rule permits public ser-vices to be provided only in Neighbor-hood Strategy Areas which is the termused in place of Comprehensive Neigh-borhood Revitalization Area. The stat-ute permits public services only inthose areas where block grant fundedphysical development activities arebeing carried out in a concentratedmanner. The limitation of public ser-vices to NSA's most closely conformsto this statutory requirement and isintended to eliminate the confusionregarding the eligibility of public ser-vices. Notwithstanding the worthinessof many services or the desire ex-pressed In some comments for greaterflexibility to fund services, the statutedoes not provide for block grant assis-tance for citywide public services.

Finally, the paragraph has beenchanged to indicate that during eachyear the required concentration of ac-tivities is present, public services maybe provided, and services may aslo becontinued for up to three years after-ward. Hence, a service might be pro-

vided in an area for four years whenthe required concentration of blockgrant assisted physical developmentactivities was present and be contin-ued for three more years after thephysical development activities werecomplete.

Paragraph (e)(2) has been revised todelete the requirement that two-thirdsof the persons receiving a public ser-vice be neighborhood residents. Thisrequirement was confused with theproposals in Subpart D as proposed re-lating to program benefit and could re-quire quantitative measurement notcontemplated by the statute. Servicesmust be designed to serve area resi-dents, but may also serve other resi-dents on an incidental basis.

Some of the comments demonstrat-ed confusion regarding the relation-ships to State, local and Federal fund-ing sources. Paragraph (e)(3) has beenrevised to refer to local revenuesources. A service must be a quantifi-able increase over the level of serviceprovided in the previous twelvemonths from the revenue sources ofthe applicant or from State fundingsources. The statute did not includeFederal sources and neither does thisregulation. Rather, Federal sourcesmust be determined not to be availableat the time of funding pursuant toparagraph (e)(4). An otherwise eligibleservice provided from block grantfunds may also be continued at thesame level in subsequent years sinceFederal funds are not measured.

In paragraph (e)(5), an example hasbeen cited of an-activity necessary andappropriate to support physical devel-opment activities. Several commentssuggested that applicants be requiredto submit all determinations forreview by HUD. Such a process wastried in prior years and was ineffec-tive. The process of a local determina-tion of appropriateness to be made byapplicants will be retained with provi-sion for HUD oversight in those moreextreme cases where the required link-ages are obscure.I Finally, the only physical develop-ment activities which are able to satis-fy the requirements of paragraph (e)are those funded from the block grantprogram. This requirement is statu-tory and cann6t be modified as severalcomments have suggested.

INTERIm ASSISTANCE

As a result of a number of com-ments, paragraph (f) of § 570.201 hasbeen revised. Interim assistance maytake place in two situations. First, inareas designated for physical develop-ment activities to take place duringthe three year period of the Communi-ty Development Program, certain in-terim activities may be undertaken asa prelude to the carrying out of morecomprehensive treatment and to holdthe area from further deterioration.

Paragraph (f)(1) degcribes these ac-tivities. These include the collection ofgarbage, trash, and debris as part ofneighborhood clean up compaigns,However, the regular collection of gar-bage or trash in an area at curb sidewould be considered a normal munici-pal service and is not eligible for assis-tance.

Paragraph (f)(2) discusses thesecond type of interim assistance ac-tivity which is directed toward the al-leviation of imminent threats to publichealth and safety, The chief executiveofficer of an applicant may determinethat an imminent threat to publichealth and safety exists in an area andshall inform the appropriate HUDArea Office within seven days of thedetermination. Imminent threats tothe public health and safety are de-scribed in greater detail in Subpart F,Three types of activities may be un-dertaken as Interim assistance in areaswhere an imminent threat Is present.These include the repair of privateproperty, the repair of public facilitiesand improvements, and the removal oftrash, debris, and unsafe structures,

RFmovAL OF AnCHITECTURAL BARRIERSSeveral comments requested further

clarification of the term "privatelyowned" as it relates in paragraph (k)of § 570.201 to the removal of architec-tural barriers. The term is quite literalin its use and means any privatelyowned building, facility, or improve-ment. This includes residential struc-tures and non-residental structures,For example, architectural barriers toprivately owned apartment buildingsor supermarkets could be removedwith block grant funds pursuant toparagraph (k).

Applicants undertaking barrier re-moval activities to be carried out withblock grant funds are encouraged tofollow the standards prescribed by theAmerican National Standards Insti-tute, Incorporated in publicationANSI A117.1-1961 (R1971).

ASSISTANCE TO PRIVATE UTILITIES

Paragraph (1) of § 570,201 authorizesthe use of block grant assistance toprivately owned, publicly regulatedutilities for activities incliling theplacing of distribution facilities under-ground. Such activities must be neces-sary and appropriate to implement anapplicant's strategy for neighborhoodrevitalization, or housing in order forassistance to be provided for this typeof commercial real property improve-ment.

REHABILITATION OF RESIDENTIALSTRUCTURES BY PUBLIC BODIES

As a result of several comments,paragraph (a) of § 570.202 has beenchanged to clarify the term "public-residential structures." Block grant


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funds may be used to rehabilitateproperties owned or acquired by apublic body which are either to remainin public ownership or to be sold. Thisincludes single and multifamily perma-nent dwelling units and residential fa-cilities, including group homes, half-way houses and emergency shelters.

REHABiLrrATION BY PRIVATE ENTITIES

A number of comments were re-ceived regarding paragraph (c)(1) of§570.202 which have resulted in anumber of revisions.

Private entities, including both thosewhich are nonprofit and profitmaking, may use block grant funds toacquire structures for rehabilitation tobe used as housing. This includes bothpermanent single and multifamilydwelling units which may be retainedby the private entity or resold, andalso residential facilities such as grouphomes, halfway houses, and emergen-cy shelters. Upon completion of the re-habilitation activities the housinguinits must meet the basic health andsafety standards of the Section 8 Ex-isting Housing Program.

OTHR REHABILITATION ASsIsTANcE

Block grant funds may be used in anumber of ways to assist in the reha-bilitation of privately owned proper-ties. Paragraph (d) of § 570.202 indi-cates that block grant funds may be,used for temporary relocation ex-penses for those displaced temporarilyby rehabilitation activities being car-ried out with block grant assistance.

In response to several commentsparagraph (c)(2) states that rehabilita-'tion financing may be provided eitherin areas where activities listed in thecommunity development program arebeing carried out or on a citywide spotbasis for low- and moderate-incomepersons.

Paragraph (c)(2)(iii) makes clearthat both heating and cooling equip-ment -may be converted, modified, orreplaced and states explicity that solarenergy equipment may be used. Al-though applicants may carry out aprogram of rehabilitation assistancedesigned solely to weatherize unitsand increase their energy efficiency,such program should not ignore seri-ous deficiencies in units being weath-erized which render the units unsafe.

Paragraph (e)(2)(v) has been addedin response to several comments. Theparagraph permits the use of blockgrant funds to pay initial homeownerwarranty premiums at the time ofloan or grant settlement to protect thequality of workmanship of the reha-bilitated unit.

Several comments requested thatHUD permit activities to be carried ona longer-term basis as a means of sup-porting neighborhood stabilization ef-forts once physical rehabilitation ofthe structures is completed, including

activities to assist low- and moderate-income persons to maintain rehabili-tated units in order to continue thestabilization of an area once morecomprehensive treatment Is complet-ed. Such activities must meet thepublic services provisions of§ 570.201(e).

Paragraph (c)(3) provides that blockgrant funds may be used to purchasematerials for the rehabilitation ofproperties. Applicants should makeadequate provision to ensure that ar-rangements are made to provide thelabor necessary to utilize the materialsin rehabilitation efforts. In some In-stances the property owner or tenantmay* be able to donate the labor, orother arrangements, such as the use ofCETA grant funds, might be devel-oped by the applicant.

CODE ENFORCEMENT

Several comments Indicated thatcode enforcement activities should bepermitted on a citywide or spot basis.The statutory authority for this activ-ity does not provide for the use ofblock grant funds in such a manner.Rather code enforcement must be un-dertaken as part of a more comprehen-sive treatment of a deteriorated or de-teriorating area. This activity shouldbe designed to supplement, but not re-place an applicant's routine enforce-ment activities.

Paragraph (e) of § 570.202 has beenmodified to indicate that block grantassisted code enforcement activitiesmay only take place inwaeas where ac-tivities listed in the Community Devel-opment Program are being carried out,such as Neighborhood Strategy Area.

HISTORIC PRESERVATION

Paragraph (f) of § 570.202 had beenchanged to include properties listed onlocal registers of historic places amongthose properties defined as historic bythis paragraph.

A number of comments addressedthe program benefit criteria set forthin § 570.302 as they relate to historicpreservatiqn activities. These require-ments are set forth In other subpartsof these regulations depending uponthe nature of the applicant. For exam.ple, entitlement applicants shouldrefer to the appropriate requirementsof Subpart D to determine whetherhistoric preservation activities, or anyother activities, comply with the crite-ria regarding program benefit.

ECONOMIC DEVELOPMENT ACTIVITIES

A large number of comments werereceived regarding the economic devel-opment activities described In§ 570.203. Several comments suggestedthat activities listed in other sectionsof the subpart also be listed here. Ac-tivities listed in ff 570.201 and 570.202may also be undertaken for the pur-

pose of supporting economic develop-ment. For example, §570.201(d) pro-vides sufficient authority for the useof block grant for clearance and demo-lition activities for economic develop-ment purposes. It would be redundantto provide for clearance and demoli-tion activities In § 570.203 when suffi-cient authority for these activities isavailable elsewhere.

There was some concern expresstdIn the comments regarding -the appar-ent open ended nature of activities au-thorzed by this section particularlythe authority in paragraph (b) for oth-erwise ineligible public facilities andImprovements. The paragraph hasbeen revised to exclude general gov-ernment facilities listed in§ 570.207(a)(1) from gaining eligibilityunder this paragraph. Activities un-dertaken pursuant to §570.203 mustbe necessary and appropriate to imple-ment an applicant's economic develop-ment strategy.

In order for an otherwise ineligiblefacility or improvement to be fundedunder paragraph (b). specific prior au-thorization must be obtained fromHUD. In authorizing activities, EtJDwill determine the necessity or appro-priateness of an activity by taking intoaccount several factors, such as theamount of long-term employment thefacility or improvement will generatefor low- and moderate-income persons,the necessity of the activity for stimu-lating private investment, the degreeof Impact on the economic conditionsof the applicant, and the availabilityof other Federal funds for the activity.

Applicants must also request deter-minations for paragraphs (a) and (c).By implementing the statutory provi-sions in this manner for activitieswhich are not normally a part of theblock grant program, HtJD will ensurethe flexibility for applicants and that,where such special activities are totake place under § 570.203, they occurwithin the framework of the basic ob-Jectives of the block grant program.

Several comments suggest that anauthority similar to that provided in§ 570.204(c) also be provided directlyfor applicants in § 570.203. Special au-thority was provided in the statute forneighborhood based nonprofit organi-zations. Small Business InvestmentCompanies, and local development cor-porations. The statute does not pro-vide a similar authority for applicants,so such a provision cannot be includedIn § 570.203.

AcTIVrIrS BY PRIVATE NoNPROFr EX-TITrES, NEIMMORHOOD-BAsED NON-PROFIT ORGANIZATIONS, SMALL BusI-NESS INVESTMENT COMPANIES, ANDLOCAL DEVELOPMENT CORPORATIONS

A number of comments were re-ceived requesting clarification of§ 570.204. paragraphs (a)(2) (D and (ii)of Section 570.204 have been revised to


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distinguish between private nonprofitentities and neighborhood based non-profit organizations. Certain activitiesmay be undertaken by only neighbor-hood-based nonprofit organizations,and not other private nonprofit enti-ties under paragraph (c) of this sec-tion. A nonprofit organization which isneighborhood-based is defined in para-graph (a)(2)(l) as one having a major-ity of Its membership, clientele, or gov-erning body residing in the neighbor-hood where the activities are to be car-ried out.

Paragraph (a)(2)(i) describes theother private nonprofit entities whichdo not qualify as neighborhood based.Although these entities may use blockgrant funds are eligible activitiesunder paragraph (b), they are ex-cluded from the authority to under-take certain other special activitieslisted in paragraph (c).

Paragraph (a)(2)(ii) has been re-vised to refer to Small Business Invest-ment Companies (SBICs) organizedpursuant to § 301(d) of the Small Busi-ness Investment Act of 1958, asamended, which include profitmakingentities. SBICs which are organized ona profitmaking basis are fully eligibleto use block grant assistance.

Paragraph (a)(2)(iv) now includesState development corporations eligi-ble under § 501 of the Small BusinessInvestment Act of 1958, as amended,among the entities defined as local de-velopment corporations for the pur-poses of the block grant program.Paragraph (c)(4) has been changed toexclude assistance for general munici-pal buildings ineligible under§ 570.207(a)(1) and political 'activitiesineligible under § 570.207(e) fromthose activities which may be carriedout under the special authority of thisparagraph.

Paragraph (b) has been revised toclarify that entities eligible to carryout activities with block grant assis-tance under § 570.204 may use blockgrant funds to acquire title to facili-ties. These facilities must be open tothe general public during those hoursof normal operation, and excessivefees for the use of the facility whichwould exclude low- and moderate-Income persons shall not be charged.

PLANNING ACTIVITIESAs a result of several comments,

paragraph (a)(4) of § 570.205 has beenchanged to indicate that planning ac-tivities may include surveys of historicproperties, and surveys and plans forremoval of architectural barriers tothe handicapped and elderly.

Paragraph (c) has been modified topermit § 701 type comprehensive plan-ning activities to be carried out by allapplicants and not be restricted tometropolitan cities and urban countiesas originally proposed. Further, activi-ties under this paragraph must be de-


termined by HUD to be necessary orappropriate to meeting the needs andobjectives of its community develop-ment plan. It is recognized that com-prehensive planning activities carriedout with block grant funds may relateto elements beyond the scope of activi-ties eligible for assistance under§§ 570.201 and 570.202.

ADMINISTRATIVE COSTS

A number of comments were re-ceived regarding general administra-tive costs which are now set forth sep-arately in § 570.206. Several commentssuggested that HUD place a percent-age limitation upon the amount ofblock grant funds that an applicantmay spend on administration. Becauseof the variety of grant sizes, types ofapplicants, and activities being under-taken which vary in complexity, HUDhas determined that there is no singlelimitation that could be imposedwhich would be equitable in all situa-tions. Rather, the term "reasonable" isthe key term in the statute and in theparagraph. HJD will continue to mon-itor administrative costs, particularlywherd applicants incur administrativecosts significantly higher than thoseof other applicants with similar grantsizes and activities.

OTHER BLOCK GRANT ADMINISTRATIVECOSTS

As a result of comments, several re-visions have been made to the generalprogram activities, which, for theblock grant program, are considered tobe administrative costs.

Paragraph (f) of § 570.206 permitsthe use of block grant funds to pre-pare applications for other Federalprograms when the activities to be car-ried out are necessary and appropriateto implement the applicant's commu-nity development strategy. There arespecial rules governing the reimburse-ment of cost for small cities set forthin Subpart F. Applicants may useblock grant funds, other than UDAGfunds, for the preparation of applica-tions for the UDAG program.

Paragraph (c) has been revised torefer to housing counseling and otheractivities undertaken by applicants toaffirmatively further fair housing andprovide a greater choice of housing op-portunities laws. Other forms of hous-ing couseling are eligible for blockgrant funding where the requirementsof § 570.201(e) are met.

Paragraph (d) has been revised to in-clude both performance and paymentbonding for contractors carrying outblock grant activities. The paragraphmakes clear that this may be accom-plished by using block grant funds topay-bonding premiums as well as otherarrangements appropriate to this ac-tivity.

Paragraph (h) makes clear that his-toric preservation clearances that are

a part of the broader environmentalassessment and clearance of block ac-tivities are eligible for assistance.

INELIGIBLE ACTIVITIES

Paragraph (a) of § 570.207 has beenchanged to clarify several points re-sulting from requests contained in thecomments. The basic rule is that itemsset forth as ineligible in this sectiongenerally may not receive block grantassistance. There are several specificexceptions. If a facility or Improve,ment is authorized under the specialauthority to permit other public facili-ties. and improvements necessary forstrategy implementation pursuant to§§ 570.201(c)(14) or 570.203(b), respec-tively, this authorization is deemed tosupersede the limitations of this para-graph. Further, the removal of archi-tectural barriers and historic preserva-tion actlilties authorized by§§ 570.201(k) and 570.202(g), respec-tively, may be carried out on facilitiesand improvements listed as a part of§ 570.207(a) which would otherwise beineligible for block grant assistance.

Paragraph (a)(2)(v) has been revisedto clarify the nature of devices whichare included as Ineligible sewage treat-ment facilities. These include theactual treatment works, interceptingsewers, outfall sewers, pumping sta-tions and other equipment. Blockgrant funds may be used to constructsewage collection lines, but not facili-ties for sewage treatment. Interceptorsewers are considered a part of thesewage treatment system and are ex-cluded from eligibility.

PURCHASE OF EQUIPMENT

Paragraph (b) of § 570.207 sets forththe policies relating to the ineligibilityof purchasing equipment with blockgrant funds. The general rule is thatblock grant funds cannot be used topurchase equipment and items of per.sonalty. There are several exceptions,Block grant funds may be used to pur-chase construction equipment which isas part of a solid waste disposal systemdescribed in § 570.201(c)(5). Funds mayalso be used by applicants and sub-grantees to purchase furnishings andpersonal property used to administer ablock grant program or a part of apublic service pursuant to § 570.201(e),Paragraph (b)(2) also authorizes theuse of block grant funds to purchasecertain motor vehicles used in pro-gram administration or as a part of apublic service.

MAINTENANCE AND REPAIR

Maintenance and repair activities re-lated to the general upkeep of publiofacilities and improvements are the re-sponsiblility of unlts of general localgovernment. Block grant funds maynot be used for general maintenanceand repairs, except for the special pro-



visions for interim assistance under§ 570.201(f).

Paragraph (c) of § 570.207 has beenrevised to provide several examples ofthe types of maintenance and repairitems that are excluded. In some cases,a fine line must be drawn betweenmaintenance and repair, and rehabili-tation of facilities and improvementswhich are eligible for assistance. Ac-cordingly, several examples are cited;filling potholes in a street, which isrepair, is ineligible, whereas resurfac-ing a street is considered for the pur-poses of the block grant program to beeligible as reconstruction or rehabilita-tion. Similarly, mowing grass in re-creation areas is maintenance and isineligible, but using'block grant fundsto add new equipment in a recreationarea would be a permitted activity.

INDUSTRIAL PARKS

Paragraph (i) of § 570.207 of the pro-posed regulations has been deleted asa result of comments. Although HUDis deleting this paragraph because thetest of firm commitments seems overlyburdensome, applicants nonethelessshould exercise judgement in usingblock grant funds for activities to de-velop an industrial park where firmcommitments are not available. WhileHUD does not wish to deter those un-dertakings with the potential for suc-cess, HUD will use the monitoring pro-cess to watch for situations where ac-tivities are undertaken without com-mitments from potential users and arenot attracted within a- reasonableperiod of time.

COMMENTS NOT AcTED UPON

The description of the changes toSubpart C discussed a number of com-ments which HUD was unable to actupon. -In many cases, comments pro-posed the inclusion or modification ofactivities not authorized by the statuteor the exclusion of activities whichwere specifically authorized. Othercomments proposed alternative .direc-tions on matters of Departmentalpolicy which after due consideration,were not accepted.

The following are some of the com-ments already discussed which HUDdid not agree to act upon for the rea-sons set forth above:

1. Permiting the use of block grantfunds to construct new housing for thehandicapped;

2. Requiring the concurrence of atleast 60 percent of the residents of anarea before initiating the acquisitionof land;

3. Deleting or imposing additionalrequirements on the use of blockgrants for purchase of existing hous-ing outside of an applicant's bound-"aries;

4. Requiring mandatory set asides ofa certain percentage of block grantfunds for a variety of individual activi-ties, such as public services;

5. Excluding the construction ofswimming pools as recreational facili-ties;

6. Excluding the construction of bikepaths, pedestrian malls, and otherpublic works authorized by the stat-ute; and

7. Permitting the use of block grantto administer activities other than sec-tion 312 rehabilitation loans and sec-tion 810 Urban Homesteading, whichare not funded by the block grant pro-gram;

A number of comments addresseddepartmental relocation policies.These comments were generally rel-evant to other subparts of the regula-tions and do not relate to the provi-sions of this subpart on the basic eligi-bility of payments and assistance.

Several comments suggested thatschool districts, local housing authorl-ties, and other public bodies be addedto the list of entities under § 570.204.This could not be accommodated be-cause the statutory authority is limit-ed to private entities.

Several comments were concernedabout the coordination of block grantfunded economic development activi-ties with the programs of other Feder-al agencies. HUD certainly encouragesapplicants to coordinate their activi-ties in such a manner as to best utilizeall available resources, but does notfeel that the Imposition of certain spe-cific requirements of other programswould be of benefit to either the blockgrant program, or other programs.OTHER INFORMATION: A Findingof Inapplicability with regard to Envi-rpnmental Impact has been preparedin accordance with HUD Handbook1390.1, and a Finding of Inapplicabil-ity-with regard to economic and Infla-tionary impact has been prepared inaccordance with Executive Order11821 for Subpart C. Copies of theFindings are available for Inspectionand copying during business hours inthe Office of the Rules Docket Clerk,Room 5216, Department of Housingand Urban Development, 451 SeventhStreet SW., Washington. D.C. 20410.

Accordingly, 24 CFR Part 570 Isamended by revising the Table of Con-tents for Subpart C and by revisingSubpart C as set forth below.

I. The Table of Contents to 24 CFRPart 570, Subpart C, is revised to readas follows:

Subpart C-Elgible Adtivitie

See.570.200 General policies.570.201 Basic eligible activities.570.202 Eligible rehabilitation and preser-

vation activities.570.203 Eligible economic development ac-

tivities.570.204 Eligible activities by private non-

profit entities, nelghborhood.based non-profit organizations local developmentcorporations, and Small Business Invest-ment Companies.

570.205 Eligible planning and urban designcosts.

570.206 Eligible administrative costs.570.207 Ineligible activities.

AuTHoRy: Title I. Housing and Commu-nity Development Act of 1974 (42 U.S.C.5301. et seq.); Title I. Housing and Commu-nity Development Act of 1977 (Pub. L. 95-128): and sec. 7(d). Department of Housingand Urban Development Act (42 U.S.C.3535(d)).

II. Subpart C. Eligible Activities isrevised to read as follows:

Subpart C-Ellgiblt Aciviifls

§ 570.200 General policies.(a) Determinations of eligibility.

This subpart sets forth the variety ofeligible activities that may be under-taken with assistance, under this Part(block grant funds) to meet communi-ty development and housing needs andpriorities principally for low- and mod-erate-income persons or for the pre-vention or elimination of slums andblight. The listing of certain eligibletypes of activities in this subpart doesnot by Itself, however, render specificactivities, proposed to be conducted byIndividual applicants, eligible for blockgrant assistance. There are other re-quirements that must also be met toqualify a specific activity for assis-tance. An activity may be assisted onlyin those instances where It complieswith the eligibility criteria of this sub-part, with all other applicable require-ments of this Part as they mak applyto applicants under Subparts D, E, F,or G, such as those relating to equalopportunity, and the basic statutoryobjectives of the block grant program.In particular, activities conducted byentitlement recipients under SubpartD must comply with the requirementsset forth in § 570.302 regarding benefitto low- and moderate-income personsor elimination of slums and blight, andsmall city discretionary recipientsmust comply with similar require-ments set forth in Subpart F. Further,there must be compliance with all ap-plicable environmental review andclearance procedures set forth in 24CFR Part 58.

(b) Urban Development actiongrants. Grant assistance may be pro-vided with Urban Development ActionGrants pursuant to Subpart G for.

(1) Activities eligible for assistancepursuant to this Subpart; and

(2) Such other activities, includingnew housing construction, as the Sec-retary may determine to be consistentwith the statutory objectives of theUrban Development Action Grant(UDAG) program as provided for in§570.453. The provisions of §570.207regarding ineligible activities apply tothe UDAG program, except where anactivity is determined to be consistentwith the statutoryobjectives of theUDAG program pursuant to § 570.453,the limitations set forth in § 570.207do not apply. -


8439


In making determinations of eligibilitywith regard to Urban DevelopmentAction Grants, for the purposes of§§ 570.201-207, the term "CommunityDevelopment Program" as used in thissubpart shall also mean the "UrbanDevelopment Action Program."

(c) Model cities activities. Notwith-standing anything to the contrary inthis subpart, any ongoing model citiesactivity being carried out in a modelcities program shall be eligible forfunding under this Part from that por-tion of the hold-harmless amount at-tributable to such model cities pro-gram until the applicant has receivedfive years of funding for such activi-ties as calculated pursuant to§ 570.103(c)(2)(iii). For the purpose ofthis paragraph, the term "ongoing ac-tivity" means any model cities activityunderway as of January 1, 1975, thatwas approved and funded by HUD onor before June 30, 1974. Upon expira-tion of the eligibility of activitiesunder this paragraph, applicantsshould refer to the other requirementsof this subpart which must be satisfiedIn order for block grant assistance tocontinue to be provided for modelcities activities.

(d) Special policies governing facili-ties. The following special policiesapply to: (1) Facilities containing botheligible and ineligible uses. Where afacility, otherwise eligible for assis-tance under the block grant programis to bre provided as a part of a multi-ple-use building and/or facility thatalso contains otherwise ineligible uses,the portion of the costs attributed tothe eligible facility may be assistedwith block grant funds where;

(i) The facility, which is otherwiseeligible and proposed for assistance,will occupy a designated and discretearea within the larger facility; and

(ii) The applicant can determine thecosts attributable to the facility pro-posed for assistance as separate anddistinct from the overall costs of themultiple-use building and/or facility.

For example,' a senior center, which isto occupy space within a building thatis otherwise used for the conduct ofgeneral governmental business, maybe assisted when it exclusively occu-pies a separate and designated areawithin the building (i.e, the seniorcenter does not "float" to different lo-cations within the building thathappen to be available on a less thanpermanent basis) and the applicantcan determine the cost associated withproviding the senior center as distinctfrom those' costs associated with all re-maining ineligible portions of thebuilding.

(2) Facilities located on school prop-erty. Any facility eligible for assistancepursuant to § 570.201(c), which is de-signed primarily for a public purposeother than education is not consideredto be a school or educational facility

where, although it is to be located on asite controlled by a school district,school board or similar body responsi-ble for public education, the facilitywill only be used *by any adjacentschool or educational facility on an in-cidental basis. In order to determinewhether the facility is to be used onan incidental basis, the applicant shallat a minimum demonstrate that:

(I) After school hours and on week-ends, the facility shall be available foruse by the general public to the sameextent 'as similar facilities operatingwithin the applicant's jurisdiction; and

(ii) During school hours, the facilityis not used for school purposes formore than four hours each day.

(e) Activities outside an applicant'sboundaries. Applicants may conductactivities which are otherwise eligiblefor block grant assistance outside oftheir boundaries which are not incon-sistent with State or local law andwhich are not plainly inappropriate tomeet identified needs of the applicant.This may include an urban county car-rying out otherwise eligible activitieswithin a metropolitan city with blockgrant assistance where the activitiesare not plainly inappropriate to meet-ing identified needs of the urbancounty.

(f) Special assessments under theblock grant program. The followingpolicies relate to the use of special as-sessment under the block grant pro-gram:

(1) Definition of special assessment.The term "special assessment" meansa fee or charge levied or filed as a lienagainst a parcel of real estate as adirect result of benefit deriyed fromthe installation of a public improve-ment, such as streets, curbs, and gut-ters. The amount of the fee representsthe pro rata share of the capital costsof the public improvement leviedagainst the benefitting properties.This term does not relate to taxes, orthe establishment of the value of realestate for the purpose of levying realestate, property, or ad valorem taxes.

(2) Special assessments to recoverblock grant funds. The general rule isthat special assessments shall not beused to recover any of the capital costsof a public improvement provided withblock grant funds. Where both blockgrant and local funds are used to pro-vide public improvements, any specialassessment shall be prorated in pro-portion to the investment of each. Ap-plicants may req'iest an exception tothis rule where the use of special as-sessments as a means to leverage pri-vate investment is necessary and ap-propriate to implement the applicant'sstrategy for economic development orneighborhood revitalization. Excep-tions will not be granted by HUD forany special assessment which will re-cover costs of public improvementsprovided vith block grant funds from

properties owned and occupied by low-and moderate-income persons. Blockgrant funds recovered through specialassessments authorized by HUD willbe considered program income pursu-ant to § 570.506.

(3) Special assessments paid withblock grant funds. Block grant fundsmay be used to pay special assess-ments levied against properties ownedand occupied by low- and moderate-Income persons for the capital costs ofeligible public facilities and Improve-ments financed from local revenuesources, other than block grant funds,which (i) are described in the Commu-nity Development Program; (i) areinitiated after the effective date ofthis provision; and (i1) represent thepro rata share of the capital cost ofthe eligible facility or improvement tothe benefitting property.

(g) Consultant Activities, Applicantsmay employ consultants to provideprofessional assistance in programplanning, application preparation, andother general professional guidancerelating to program execution. Theuse of consultants is governed by thefollowing:

(1) Program requirements, includingthe requirements of this Part, FederalManagement Circular 74-4, OMB Cir-cular A-102, and applicable Federal,State, and local laws;

(2) Written agreements shall be ex-ecuted between the parties whichdetail the responsibilities, standards:and fees;

(3) Compensation for consultants,No person employed as a consultant,or by a firm providing consultant ser-vices, shall receive more than a reason-able rate of compensation for personalservices paid with block grant fundswhich, on a daily basis, shall notexceed the maximum daily rate ofcompensation for a OS-18 as estab-lished by Federal law; and

(4) Adjustments of rates of compen-sation and payments under consultantcontracts may be made where auditand monitoring reviews indicate thatthe rates of compensation were notreasonable, or exceeded the maximumdaily rate for a GS-18.

(h) Transition policy for fiscal year1978. A number of activities set forthin Subpart C contain, as a part of thecriteria for eligibility for block grantassistance, requirements that activitiesbe necessary and appropriate to theimplementation of certain strategiesfor community development and hous-ing described in Subpart D, or that ac-tivities take place within Neighbor-hood Strategy Areas (NSA).

(1) Interim strategy statement. Forthose applications submitted duringfiscal year 1978 prior to the effectivedate for the submission of strategies,applicants may submit a brief narra-tive interim strategy statement for ac-tivities subject to this requirement,


8440


The interim strategy statement shallinclude:

(i) a brief description of the activity;,-(i) a brief description of the needs

and conditions the activity is designedto address; and

(iiI) a brief description of how theactivity will impact upon the needsand conditions which it is designed toaddress.

(2) Interim NSA designation. Forthose applications submitted duringfiscal year 1978, applicants may desig-nate interim NSA's for activities sub-ject to this requirement. An interimNSA is selected by the applicant anddesignated in the Community Devel-opment Program. In determining thesize of the NSA, the applicant shalltake into account the severity of Itsproblems and the amount of 7resourcesto be provided to address those prob-lems. For each area designated as .anNSA, the applicant shall include abrief narrative description of its planfor stabilizing and upgrading the areawhich:

(i) provides for a combination ofphysical improvements, necessarypublic facilities and services, privateinvestment and citizen self-help activi-ties appropriate to the needs of thearea; and

(ii) coordinates public and private in-vestment efforts.

§ 570.201 Basic eligible activities.Grant assistance may be used for

the following activities:(a) Acquisition. Acquistion in whole

or in part by a public agency, by pur-chase, lease, donation or otherwise, ofreal property (including air rights,water rights, rights-of-way, easements,and other interests therein) which Is:

(1) Blighted, deteriorated, deterio-rating, undeveloped or inappropriatelydeveloped from the standpoint ofsound community development andgrowth, as determined by the recipientpursuant to State and local laws;

(2) Appropriate for rehabilitation orconservation activities;

(3) Appropriate for the preservationor restoration of historic sites, thebeautification of urban land, the con-servation of open spaces, natural re-sources and scenic areas, the provisionof recreational opportunities or theguidance of urban development;

(4) To be used for the provision ofpublic works, facilities and improve-ments eligible for assistance underthis subpart; or

(5) To be used for other public pur-poses, including the conversion of landto other uses where necessary or ap-propriate to the community develop-ment program. Examples include an

• applicant purchasing land to be usedfor the development of housing forlow- and moderate-income persons.and an applicant which is a centralcity of a metropolitan area using block

grant funds to purchase houses in anon-impacted suburban Jurisdiction inorder to provide a wider choice ofhousing opportunities for central citylower-income residents.

(b) Disposition. Disposition. throughsale, lease, donation, or otherwise, ofany real property acquired with blockgrant funds or Its retention for publicpurposes, provided that the proceedsfrom any such disposition shall be pro-gram income subject to the require-ments set forth in §570.506. Furtherinformation regarding disposition Isset forth in § 570.613.

(c) Public facilities and Improve-ments. Acquisition. construction. re-construction, rehabilitation, or instal-lation of certain publicly owned facili-ties and improvements. This may in-clude the execution of architecturaldesign features, and similar treat-ments intended to enhance the esthet-Ic quality of facilities and improve-ments receiving block grant assistance,such as decorative pavements, railings,sculpture, pools of water and foun-tains, and other works of art. Publicfacilities and improvements eligiblefor assistance under this paragraph in.clude:

(1) Senior centers, but excluding anyfacility whose primary function is toprovide residential accommodations orcare on a 24-hour day basis (such as agroup home).

(2) Parks, playgrounds and other rec-reational facilities which are designedfor participation, but not spectator fa-cilities such as stadiums. '

(3) Centers for the handicapped. Theterm "center for the handicapped"means any single or multipurpose fa-cility which seeks to assist personswith physical, mental, developmentaland/or emotional impairments tobecome more functional members ofthe community by providing programsor services which may include, but arenot limited to. recreation, education,health care. social development, inde-pendent living, physical rehabilitationand vocational rehabilitation; but ex-cluding any facility whose primaryfunction is to provide residential careon a 24-hour a day basis (such as a.group home or halfway house). Forexample, a sheltered workshop wouldbe a single purpose center for thehandicapped, and a facility providingseveral services for the handicappedwould be a multipurpose center forthe handicapped, both of which areeligible for assistance.

(4) Nelghborhood facilities. Such fa-cilities may be of either a single pur-pose or multipurpose nature and bedesigned to provide health, social, rec-reational or smiliar community ser-vices primarily for residents of theneighborhood service area which iseither.

(I) A geographic location within thejurisdiction of a unit of general local

government (but not the entire juris-diction) designated in comprehensiveplans, ordinances or other local docu-ments as a neighborhood or, in a newcommunity as defined in § 570.403(a),a neighborhood, village or similar geo-graphical designation; or

(II) An entire unit of general localgovernment or a new community asdefined in § 570.403(a) which is under25,000 population, with the exceptionof a facility which is designed solely asa communitywide facility in a newcommunity with a currently projectedpopulation in excess of 25,000.

(5) Solid waste disposal facilities.,which are defined as those physicalparts of solid waste management sys-

'tems commencing at and including thesite or sites at which publicly or pri-vately owned collection vehicles dis-charge municipal solid wastes,through the point of ultimate disposalincluding necessary site improvementsand conveying systems, including ap-propriate fixed and movable equip-ment including vehicular containersused after the first stage of disposal attransfer stations, but not includingthe final collections. (I) Such facilitiesor equipment must be located in orserve areas where other activities in-cluded in the Community Develop-ment Program are being carried out,such as a NSA. (11) Equipment and ap-purtenances used in the initial collec-tion of solid waste are not includedamong those solid waste disposal fa-cilties eligible for assistance underthis Part.

(6) Fire protection facilities andequipmenL Such facilities and equip-ment must be located in or serve areaswhere other activities included in theCommunity Development Program arebeing carried out, such as a NSA.

(1) Fire protection facilities are de-fined as the land and necessary Im-provements thereto which are neces-sary for properly housing and storingfire protection equipment and person-nel by a fire protection organization,but not including fire fighting schoolsand their appurtenances.

(i) Fire protection equipment is de-fined as the appropriate equipmentand apparatus which a fire protectionorganization requires for carrying outa program for protecting property andmaintaining the safety and welfare ofthe public, including emergency medi-cal aid, from the dangers of fire.

(7) Parking facilitie&. Such facilitiesmust be located in or serve areaswhere other activities included in theCommunity Development Program arebeing carried out, such as a NSA.

(8) Public utilitie, other than waterand sewer, which include:

(1) Facilities necessary for distribu-Uon of the utility (but not productionor generation, such as electrical gen-eration plants);

(1i) Buildings and improvements thatare an integral part of the utility and


8441


are of such a nature that the utilitywill not function without them; and

(iii) The placing underground of ex-isting or new distribution facilities.Further information regarding the eli-gibility of assistance to privatelyowned utilities is set forth in§ 570.201(1).

(9) Street improvements. Streets,street lights, traffic signals, signs,street furniture, trees, bridges, cul-verts causeways, curbs, gutters,sidewalks, and other normal appurte-nances to streets and structures facili-tating the passage on, or usage of,streets, but excluding expressways andother limited access ways and their ap-purtenances.

(10) Water and sewer facilities, in-cluding storm sewers, except forsewage treatment works and intercep-tor sewers which are described as in§ 570.206(a)(6). The term "stormsewers" means sewers or other con-duits, open or closed, or their appurte-nances which collect, transport anddispose of storm waters, surface water,street wash, other wash and groundwater or drainage into an existingwater course, but excluding domesticwaste water and commercial and in-dustrial wastes.

(11) Foundations and platforms forair rights sites.

(12) Pedestrian malls and walkways.(13) Flood and drainage facilities, in

cases where assistance for such facili-ties has been determined to be un-available under other Federal laws orprograms pursuant to the provisionsof § 570.607. The term "flood anddrainage facilities" means those un-dertakings designed to influence oraffect the flow in a natural watercourse (such as a river, stream, lake,estuary, bay, ocean or intermittentstream) and excludes storm sewers.

(14) Other public facilities and im-provements, not listed in this para-graph, except those described in§§ 570.207 (a)(1) and (f), which are nec-essary and appropriate to the imple-mentation of the applicant's strategyfor neighborhood revitalization orhousing.

(i) The applicant shall provide HUDwith a description of the proposed fa-cility or improvement and the rela-tionship to applicant's strategy forneighborhood revitalization or hous-Ing.

(ii) Among the factors HUD will takeinto account in authorizing assistanceunder this paragraph are the amountof benefit to low- and moderate-income persons, the degree of impacton the identified needs of the appli-cant, and the avbilability of other Fed-eral funds for the activity.

(d) Clearance activities. Clearance,demolition and removal of buildingsand improvements, including move-ment of structures to other sites. De-molition of HUD assisted housing

units may be undertaken only withthe prior approval of HUD.

(e) Public services. Provision ofpublic services (including labor, sup-plies and materials) which are directedtoward improving the community'spublic services and facilities, includingthose concerned with employment,crime prevention, child care, health,drug abuse, education, welfare or rec-reational needs, and which are direct-ed toward coordinating public and pri-vate development programs. Such ser-vices may be provided by State or localgovernments, quasi-public, private ornonprofit agencies, including, but notlimited to, HUD-approved counselingagencies, selected by the applicant forfunds provided under this Part. Inorder to be eligible for block grant as-sistance, public services must meeteach of the following criteria:

(1) Public services are to be providedfor residents of neighborhood strategyareas in which block grant assistedphysical development activities arebeing carried out in a concentratedmanner. Such public services may besupported with block grant fundsduring the period which block grantassisted physical development activi-ties are being carried out in a concen-trated manner, and may be continuedfor no more than three years after thecompletion of such physical develop-ment activities. For the. purpose ofthis paragraph:

(I) Physical development activitiesinclude only those described in§ 570.201 (a) through (d), (f) through(h), and (k), and § 570.202 through§ 570.203.

(ii) The phrase "concentratedmanner" shall mean that the blockgrant assisted physical developmentactivities are being carried out withinan area in a coordinated manner toserve a common objective or purposepursuant to a locally developed plan orstrategy.

(2) Such services must be directedtoward meeting the needs of residentsof such areas. Block grant assistancemay incidentally be provided for suchservices only for those who are notresidents of areas of concentrated-physical development.

(3) A public service must be either (i)a new service, or (ii) a quantifiable in-crease in the level of a service abovethat which has been provided by or inbehalf of the applicant from local rev-enue sources or State funds receivedby the applicant in the twelve calen-dar months prior to submission of theblock grant application. (An exceptionto this requirement with regard toState-funded services may be made ifHUD determines that the decrease inthe level of a service Was the result ofevents not within the control of theapplicant.)

(4) Federal assistance in providing orsecuring such public services must

have been applied for and denied ornot made available pursuant to theprovisions of § 570.607.

(5) Public services must be deter-mined by the applicant to be necessaryor appropriate to support the physicaldevelopment activities to be carriedout within Neighborhood StrategyAreas. For example, the provision ofjob training for area residents workingon neighborhood revitalization pro-jects would be appropriate to supporta concentration of block grant assistedphysical development activities beingcarried out In the area. (i) The specificdetermination of support for each pro-posed public service is not required tobe included in the application, but theapplicant must briefly describe the re-lationship of the public service to thephysical development activities. (ii)HUD will accept the applicant's deter-mination that a public service is neces-sary and appropriate to support thephysical development activities unlessthere is substantial evidence to thecontrary, in which case additional in-formation or assurances may be re-quested from the applicant prior to adetermination of eligibility.

() Interim assistance. Interim assis-tance to alleviate harmful conditionswhere immediate public action Is de-termined by the applicant to be neces-sary.

(1) The following activities may beundertaken as a prelude to more com-prehensive treatment In areas whereactivities included in the CommunityDevelopment Program are to be car-ried out, such as an NSA, in order tohold the area from further deteriora-tion during the interim period:

(i) - The repairing of streets,sidewalks, parks, playgrounds, publiclyowned utilities and public buildings;

(ii) The improvement of privateproperties to the extent necessary toeliminate immediate dangers to publichealth, safety or welfare;

(iiI) The establishment of temporarypublic playgrounds on vacant land;and

(iv) The execution of special gar-bage, trash, and debris removal, In-cluding neighborhood clean up Cam-paigns, but not the regular curbsidecollection of garbage or trash in anarea,

(2) The following activities may beundertaken to the extent necessary toalleviate emergency conditions threat-ening the public health and safety inareas where the chief executive officerof the applicant determines that animminent threat to the public healthand safety exists requiringjmmediateresolution of emergency conditions:

(I) the improvement of private prop-erties;

(ii) the repair of streets, sidewalks,utilities, and other public facilities andImprovements; and

(lii) the removal of trash and debris,unsafe structures, clearance of streets


8442


including snow removal, and othersimilar activities.

The chief executive officer, or hisdesignee, shall notify the appropriateHUD Area Office within seven days ofdetermining that a situation existswhich poses an imminent threat to thepublic health and safety and thatblock grant funds will be used to alle-viate the emergency conditions.

(g) Payment of the non-Federal sharerequired in connection with a Federalgrant-in-aid program undertaken asparit of the block grant activities, Pro-vided, That such payment shall belimited to activities otherwise eligibleunder this subpart.

(h) Urban renewal completion. Pay-ment- of the cost of completing anurban renewal project funded underTitle I of the Housing Act of 1949 asamended. Further information regard-ing the eligibility of such costs is setforth in § 570.801.

(i) Relocation. Relocation paymentsand assistance for individuals, families,businesses, nonprofit organizations,and farm operations displaced by ac-tivities assisted under this Part. Fur-ther information regarding the eligi-bility of relocation costs is set forth in§ 570.602.

(j) Loss of rental income. Paymentsto housing owners for losses of rentalincome incurred in holding for tempo-rary periods housing units to be uti-lized for the relocation of individualsand families displaced by program ac-tivities ssisted under this Part.

(k) Removal of architectural bar-riers. Special projects directed to theremoval of material and architecturalbarriers which restrict the mobilityand accessibility of elderly or handi-capped persons to publicly owned andprivately owned buildings, facilities,and improvements. Further informa-

-tion regarding the removal of architec-tural barriers is available in publica-tion ANSI A117.1-1961 (R. 1971) of theAmerican National Standards Insti-tute, Inc.

(1) Privately owned utilities. Acquisi-tion, construction, reconstruction, re-habilitiation or installation of distri-bution facilities and lines of privatelyowned utilities where necessary andappropriate to implement the appli-cant's strategy for neighborhood revi-talization or housing. Activities mayinclude the placing underground ofnew or existing distribution facilities.

(1) The applicant shall provide HUDwith a description of the proposed ac-tivity and the relationship to the ap-plicant's strategy for neighborhood re-vitalization or housing.

(2) Among the factors HUD will takeinto account in authorizing such ac-tivities are:

(i) The degree of benefit to low- andmoderate-income persons;

(ii) The degree of impact on the in-dentified needs of the applicant; and

(ill) The availability of other Federalfunds for the activity.

§ 570.202 Eligible rehabilitation and pres-ervation activities.

Grant assistance may be used forthe following activities for the reha-bilitation of buildings and Improve-ments:

(a) Rehabilitation of public residen-tial structures. Rehabilitation of pub-licly owned or acquired properties foruse or resale in the provision of hous-ing. including:

(1) Permanent housing units, bothsingle family and multifamily, forrental or sale; and

(2) Residential facilities, includinggroup homes, halfway houses, andemergency shelters. For example, agroup home for the handicapped or atemporary shelter for battered womenmay be provided through acquisitionand rehabilitation of properties forthose purposes.

(b) Public housing modernization.Modernization and modernizationplanning of publicly-owned low-incomehousing (excluding. the new construc-tion of office facilities for such publichousing).

(N.B. block grant funds may also be pro-vided by an applicant to a public housingagency to be used for otherwise eligible ac-tivities, e.g, public services such as securityand day care meeting the requirements of§570.201(e) and planning and policy-plan.ning-management activities under §570.205related to public housing Improvements)

(c) Rehabilitation of private proper-ties. Block grant assistance may beused for the rehabilitation of privatelyowned properties. Assistance may con-sist of:

(1) Acquisition for the purpose of re-habilitation. Block grant funds maybe used to assist private entities, In-cluding those organized for profit andon a not-for-profit basis to acquireforthe purpose of rehabilitation, and re-habilitate properties for use or resalein the provision of housing which,upon completion of rehabilitation, at aminimum will meet the Section 8 Ex-isting" Housing Quality Standards setforth in 24 CFR § 882.109, Including:.

(I) Permanent housing units, bothsingle family and multifamily, forrental or sale; and

(ii) Residential facilities, includinggroup homes, halfway houses, andemergency shelters;

(2) Rehabilitation financing. Blockgrant funds may be used to financethe rehabilitation of privately ownedresidential, non-residential (excludingindustrial properties), and mixed useproperties either within areas whereactivities included in the CommunityDevelopment Program are being car-ried out. such as a NSA. or on a spotbasis throughout the jurisdiction ofthe applicant for low- and moderate-income persons. Block grant funds

may be used directly to finance reha-bilitation. including settlement costs,through the direct use of block grantfunds In the provision of assistance,such as grants, loans, loan guaranteesand interest supplements, for.

(I) Costs of rehabilitation of proper-ties, including, repair directed towardcure of an accumulation of items ofdeferred maintenance, replacement ofprincipal fixtures and components ofexisting structures, and renovationthrough alteration, additions to, or en-hancement of existing structures,which may be undertaken singly, or incombination;

(i) Refinancing existing indebted-ness secured by a property being reha-bilitated if guch refinancing is neces-sary or appropriate to the execution ofa Community Development Program;

(Ill) Measures to increase the effi-cient use of energy in structuresthrough such means as Installation ofstorm windows and doors, siding, walland attic insulation, and conversion,modification or replacement of heat-ing and cooling equipment, includingthe use of solar energy equipment;

(iv) Financing of costs associatedwith the connection of residentialstructures to water distribution linesor local sewer collection lines; or

(v) Costs of initial homeowner war-ranty premiums for rehabilitation car-ried out with block grant assistance.

(3) Materials. Block grant funds maybe used to provide materials, includingtools, for use in the rehabilitation ofproperties either by the propertyowner or tenant, or where arrange-ments have been made for the provi-slon of labor, such as through a CETAgrant.

(d) Temporary relocation assistanceBlock grant funds may be used fortemporary relocation payments andassistance to individuals, families,businesses, non-proflt organizations,and farm operations displaced tempo-rarily by rehabilitation activities as-sisted under this part. Further infor-mation regarding the eligibility of re-location costs is set forth in § 570.602.

(e) Code enforcement. Code enforce-ment in areas where activities includedIn the Community Development Pro-gram are being carried out, such as anNSA. which is deteriorating or deterio-rated in which such enforcement to-gether with public improvements, re-habilitation assistance, and services tobe provided, may be expected to arrest-the decline of the area.

(f) Historic preservation. Rehabilita-tion, preservation, restoration and ac-quisition of historic properties, either_publicly or privately owned, which arethose sites or structures that areeither listed in or eligible to be listedIn the National Register of HistoricPlaces. listed in a State or local Inven-tory of Historic Places, or designatedas a State or local land mark or histor-


8443


ic district by appropriate law or ordi-nance.Publicly owned historic propertiesmay be assisted, including those prop-erties which are otherwise ineligiblefor assistance under this subpart.However, eligibility is limited only tothose costs necessary for rehabilita-tion, preservation or restoration of theproperty and not for conversion or ex-pansion of the property for any ineli-gible use. For example, a city museumserving low- and moderate-income per-sons, and listed in the National Regis-ter may be restored, but the additionof a new wing on the museum couldnot normally be assisted, unless itwere otherwise eligible for assistancepursuant to § 570.203(b).

§ 570.203 Eligible economic developmentactivities.

Grant assistance may be providedfor the following development activi-ties which are not 'otherwise eligiblefor block grant assistance, which aredirected toward the alleviation ofphysical and economic distress, or theeconomic development of a new com-munity as described in § 570.403(a)through stimulation of private invest-ment community revitalization, andexpansion of economic opportunitiesfor low- and moderate-income persons,and handicapped persons, and whichare necessary and appropriate to Im-plement the applicant's strategy foreconomic development.

The applicant shall provide HUDwith a description of the activity, andof the relationship to the applicant'sstrategy for economic development. Inauthorizing activities, HUD will takeinto account the amount of long-termemployment to be generated by theactivity accessible to low- and moder-ate-income persons, the necessity ofthe activity to stimulate private in-vestment, the degree of impact on theeconomic conditions of the applicant,and the availability of other Federalfunds.

(a) Acquisition. Acquisition of realproperty for economic developmentpurposes;

(b) Public facilities and improve-ments. Acquisition, construction, re-construction, rehabilitation, or instal-lation of public facilities and, improve-ments not otherwise eligible for assis-tance, except buildings and facilitiesfor the general conduct of governmentwhich are excluded by § 570.207(a)(1).

For example, in an area with an un-employment rate in excess of the na-tional rate, a manpower trainingcenter which is designed to prepare forthe work force low- and moderate-income persons who are unemployedor underemployed, may be assistedwhere it is determined by the appli-cant that such a facility is necessaryand appropriate to support its eco-nomic development strategy.

(c) Commercial and industrial facili-ties. Acquisition, construction, recon-struction, rehabilitation or installationof:

(1) Commercial or inaustrial build-ings and structures, including.

(I) Purchase of equipment and fix-tures which are part of the real estate,but not personal property; and

(ii) Energy conservation improve-ments designed to encourage the effi-cient use of energy resources (includ-ing renewable energy resources or al-ternative energy resources);

(2) Commercial or* industrial realproperty improvements (including rail-road spurs or similar extensions)-

§ 570.204 -Eligible activities by privatenonprofit entities, neighborhood-basednonprofit organizations, local develop-ment corporations, or small businessinvestment companies.

(a) General Grant assistance may beused by applicants to provide blockgrant funds for activities designed toimplement the applicant's strategiesfor economic development and neigh-borhood revitalization set forth in thissection to be carried out by a privatenonproft entity, a neighborhood-basednonprofit organization, local develop-ment corporation, or Small BusinessInvestment Company (SBIC). (1) Ap-plicant Responsibilities. Applicantsare nonetheless responsible for ensur-ing that block grant funds are utilizedby such entities in a manner consis-tent with the requirements of thisPart and other applicable Federal,State, or local law. Specific require-ments governing the administration ofthe use of block grant funds by suchentities are set forth in § 570.612. Ap-plicants will also be responsible for thecarrying out of applicable environmen-tal review and clearance responsibil-ities.

(2) Eligible Entities. Entities eligibleto receive block grant funds under thissection are: (i) A private non-profitentity which is any organization, cor-poration, or association, duly orga-nized to promote and undertake com-munity development\ activities on anot-for-profit basis, including newcommunity associations as defined in§ 570.403(b);

(ii) A neighborhood-based nonprofitorganization which is an association orcorporation, duly organized to pro-mote and undertake community devel-opment activities on a not-for-profitbasis within a neighborhood as de-fined pursuant to § 570.201(c)(4). Anorganization is considered to be neigh-borhood-based if the majority ofeither its membership, clientele, orgoverning body are residents of theneighborhood where activities assistedwith block grant funds are to be car-ried out;

(Iii) A Small Business InvestmentCompany (SBIC) which is an entity

organized pursuant to section 301(d)of the Small Business Investment Actof 1958 (15 U.S.C. 681(d)), Includingthose which are profit making; and

(iv) A local development corporationwhich is an entity organized pursuantto Title VII of the Headstart, Econom-ic Opportunity, and Community Part-nership Act of 1974 (42 U.S.C. 2981)an entity eligible for assistance undersection 502 of the Small Business In-vestment Act of 1958 (15 U.S.C. 696), aState development entity eligible forassistance under section 501 of theSmall Business Investment Act of 1958(15 U.S.C. 695), or other similar entityincorporated pursuant to Federal,State, or local law.

(b) Activities eligible under§§ 570.201-570.203, and § 570,205 and§ 570.206. Grant assistance may be pro-vided by an applicant to be utilized byprivate nonprofit entities, neighbor-hood-based nonprofit organizations,SBIC's, or local development corpora-tions for activities otherwise eligiblefor block grant assistance pursuant to§§ 570.201-570.203, § 570.205, and§ 570.206. Where such entities useblock grant funds to acquire title to fa-cilities, Including those described in§ 570.201(c) or § 570.203(b), they shallbe operated so as to be open for use bythe general public during all normalhours of operation. Reasonable feesmay be charged for the use of facili-ties acquired by such entities, butcharges, such as excessive membershipfees, which will have the effect of pre-cluding low- and moderate-income per-sons from using the facilities are notpermitted.

(c) Community economic develop-ment or neighborhood revitalizationactivities. Grant assistance may beprovided by an applicant to be used byneighborhood-based nonprofit organi-zations, SBIC's or local developmentcorporations, but not private nonprofitentities as defined in § 570.204(a)(2)(1),for community economic developmentor neighborhood revitalization activi-ties which are not otherwise eligiblefor assistance under this subpart andwhich are determined by the applicantto be necessary or appropriate to theaccomplishment of its Community De-velopment Program. Such activitiesmay include the provision of blockgrant assistance for use by neighbor.hood-based nonprofit organizations,SBIC, or local development corpora-tions for:

(1) Assistance through grants, loans,guarantees, interest supplements, ortechnical assistance to new or existingsmall businesses, minority businessesand neighborhood nonprofit business-es for

(i) Working capital or operationalfunds; and

(1i) Capital for land, structures,property improvements, and fixtures;

(2) Capitalization of a SBIC or localdevelopment corporation required to


8444


qualify for-assistance under other Fed-eral programs;

(3) Assistance to minority contrac-tors to obtain performance bonding;, or

(4) Other activities, excluding thosedescribed as ineligible for block grantassistance in §§ 570.207(a)(1) and (e),appropriate for community economicdevelopment or neighborhood revital-ization. Where an applicant proposesto fund such entities to undertake ac-tivities pursuant to this "paragraph,the applicant shall:

(i) Provide HUD with a complete de-scription of the proposed activity;

(ii) Provide HUD with a descriptionof the relationship of the proposed ac-tivity to the applicant's strategy forneighborhood revitalization or econ-

-mic development; and(ill) Receive specific authorization

from HUD to undertake the activity.

§ 570.205 Eligible planning, and urban en-vironmental design costs.

Grant assistance may be used forthe following planning, design, and en-vironmental costs:

(a) Development of a Comprehensive-Community Development Plan. Forthe purpose, of this section, the term"Comprehensive Community Develop-ment Plan" means a statement orstatements (in words, maps, illustra-tions or other methods of .communica-tion) which identify the present condi-tions, needs and major problems of theapplicant's jurisdiction relating to thespecific objectives of the CommunityDevelopment Program as set forth in§ 570.2(a) and set forth objectives, poli-cies and standards to guide the devel-opment and implementation of suchCommunity Development Program.Activities necessary to develop a Com-prehensive Community DevelopmentPlan may include: a

(1) Data gathering and studie nec-essary for the development of thePlan or its components, including theproduction of base mapping and aerialphotography in coordination with theU.S. Geological Survey, and gatheringinformation from citizens, but exclud-ing the gathering of detailed data andpreparing of analyses necessary forthe engineering and design of facilitiesor activities ineligible for block grantassistance pursuant to § 570.207;

(2) Development of statements of ob-jectives, policies and standards regard-ing proposed or forseeable changes in-the present conditions or problems af-fecting the applicant's jurisdictionthat are to be.addressed by the Com-munity Development Program, includ-ing policies which will affirmativelyfurther fair housing;,

(3) Development of a three-year Corn.=unity Development Plan which iden-tifies the community development,housing, and economic conditions andneeds, demonstrates a comprehensivestrategy for meeting those needs and

specifies both short- and long-term ob-jectives to guide the applicant's Com-munity Development Program;

(4) Related planning and urban en-vironmental design acitivities includ-ing the preparation of communitywideplans for land use, housing, openspace, recreation, utilities, historicpreservation, including surveys of his-toric properties, economic develop-ment, neighborhood preservation, re-moval of architectural barriers to theelderly and handicapped, and environ-mental assessment;

(5) Collection of detailed data, prep-aration of analyses, engineering anddesign of facilities eligible for assis-tance which can be constructed withblock grant funds; and

(6) Development of codes, ordinancesand regulations, necessary for the Im-plementation of the plan, includinglocal fair housing ordinances.

(b) Development of a policy-plan-ning-management capacity so that theapplicant may:.

(1) Set long-term and short-term ob-Jectives related to the community de-velopment and housing needs of its ju-risdiction;

(2) Devise programs and activities tomeet these goals and objectives;

(3) Establish an urban environmen-tal design administrative capacity touse a systematic, interdisciplinary ap-proach to the integrated use of natu-ral and social sciences and environ-mental design arts in plannin and de-cision making,

(4) Evaluate the progress of suchprograms and activiltes and the extentto which the goals and objectives havebeen accomplished: and

(5) Carry out the management, co-ordination and monitoring of the ac-tivities and programs that are a partof the applicant's Community Devel-opment Program.

(c) Comprehensire planning aetivi-ties In addition to the planning activi-ties otherwise eligible for assistanceunder this section, assistance may bealso provided for comprehensive plan-ning activities eligible for assistanceunder the section 701 planning assis-tance program pursuant to 24 CFRPart 600 provided that such additionalplanning activities are necessary or ap-propriate to meeting the needs and ob-jectives of the applicants' CommunityDevelopment Program. The applicantshall submit a description of the activ-ity to HuD. Among the factors HUDwill take into account in authorizingactivities will be the Impact of the ac-tivity on the needs and objectives Iden-tified by the applicant, and the avail-ability of other Federal funds.

§ 570.206 EligibleCosts.

Administrative

Payment of reasonable administra-tive costs and carrying charges relatedto the planning and execution of com-

munity development activities fi-nanced, in whole or in part, with fundsprovided under this Part and housingactivities covered in the applicant'sHousing Assistance Plan (HAP). CostsIncurred in carrying out the program,.whether charged to the program on adirect or an indirect basis, must be inconformance with the requirements ofFederal Management Circular (FMC)74-4, "Cost Principles Applicable toGrants and Contracts with State andLocal Governments." All items of costlisted in Attachment B, Section C ofthat Circular (except Item 6, preagree-ment cost, which are eligible only tothe extent authorized in -§ 570.301(c)are allowable without prior approvalto the extent they constitute reason-able costs and are otherwise eligibleunder this subpart.

(a) Eligible program administrationcosts. Reasonable administrative costsand staff expenses include necessaryexpenditures for the following.

(1) Salaries, wages and related costsof the applicant's staff and the staff oflocal public agencies engaged in carry-ing out the program;

(2) Travel costs incurred for officialbusiness in carrying out the program;

(3) Administrative services per-formed under third-party contracts oragreements, including such services asgeneral legal services, accounting ser-vices and audit services;

(4) Other costs for goods and ser-vices required for administration ofthe program, including such goods andservices as rental and maintenance ofoffice space, insurance, utilities, officesupplies and rental or purchase ofoffice equipment;

(5) Costs associated with the admin-istration of individual program activi-ties; and

(6) ReasonablW administrative costsrelating to the provision of rehabilita-tion loans under Section 312 of theHousing Act of 1964, as'amended, and,where appropriate, administration ofan urban homesteading program pur-suant to section 810 of the Housingand Community Development Act of1974, as amended, in accordance withthe Community Development Pro-gram or housing assistance plan.

(b) The Provision of informationand other resources to residents andcitizen organizations participating inthe planning, mplementation, or as-sessment of activities being carried outwith block grant funds. This may in-clude assistance to neighborhood orga-nizations in areas of concentrated ac-tivities or to city-wide organizationsconducting training or other activitiesdesigned to increase the capability oflow- and moderate-income persons tobe involved effectively in the develop-ment and planning and design of acommunity development program con-sistent with the applicable citizen par-ticipation requirements set forth inthis Part.


8445


(c) Provision of fair housing counsel-ing services and other activities de-signed to further the fair housing pro-visions of § 570.307(k) and the housingobjective of promoting greater choiceof housing opportunities and avoidingundue concentrations of assisted per-sons in areas containing a high propor-tion of lower-income persons. For ex-ample, activities may include inform-ing members of minority groups, andthe handicapped, of housing opportu-nities In non-traditional neighbor-hoods and providing informationabout such areas, and assisting mem-bers of minority groups, and thehandicapped, through provision ofescort services to brokers offices innon-traditional neighborhoods.

(d) Provision of assistance to facili-tate performance and payment bond-ing necessary for contractors carryingout activities assisted with block grantfunds ncluding, payment of bond pre-miums in behalf of contractors.

(e) Property management Reason-able costs of managing properties ac-quired with block grant funds.

(f) Applications for Federal pro-grams, including the block grant pro-gram and UDAG program, may be pre-pared with block grant funds wherenecessary and appropriate to Imple-ment the applicant's 'comprehensivestrategy for community development.Special provisions regarding letter toproceed for small city applicants arecontained in Subpart F.

(g) Activities to facilitate the imple-mentation of a housing assistanceplan for necessary expenses, prior toconstruction, in planning and obtain-ing financing for the'new constructionor substantial rehabilitation of hous-ing for lower-income persons. Activi-ties may include:

(1) The costs of conducting prelimi-nary surveys and analyses of marketneeds;

(2) Site and utility plans, narrativedescriptions of the proposed construc-tion, preliminary cost estimates, urbandesign documentation, and "sketchdrawings," but excluding architectur-al, engineering, and other details ordi-narily required for construction pur-poses, such as structural, electrical,plumbing, and mechanical details;

(3) Reasonable costs associated withdevelopment of applications for mort-gage and insured loan commitments,including commitment fees, and of ap-plications and proposals under theSection 8 housing assistance paymentsprogram pursuant to 24 CFR Parts880-883; and

(4) Fees associated with processingof applications for mortgage and in-sured loan commitments under pro-grams including those administered-byHUD. Farmers Home Administration(FmHA), Federal National MortgageAssociation (FNMA), and the Govern-ment National Mortgage Association(GNMA).

, The new construction or direct fi-nancing of new construction of hous-ing is not eligible for assistance underthis Part, except as described in§ 570.207(f).

(h) Environmental Studies. The rea-sonable costs of environmental studies,including historic preservation clear-ances, necessary to comply with 24CFR Part 58, including project specificenvironmental assessments and clear-ances for activities eligible for assis-tance under this Part.

§ 570.207 Ineligible activities.The following is a list of activities

which are ineligible for block grant as-sistance under most circumstances andserves as a general guide regarding in-eligible activities. There are severalauthorities set forth in Subpart Cwhich would permit activities cited inthis section to be undertaken withblock grant funds. When an activityused as an example in this sectionmeets the requirements for eligibilitypursuant to Subpart C. such an activ-ity may be assisted with block grantfunds even though it is used as an ex-ample of an ineligible activity. The listof examples of ineligible activities ismerely illustrative and does not consti-tute a list of all ineligible activities:

(a) Public works, facilities and siteor other improvements. The generalrule is that public works, facilities andsite or other improvements are ineligi-ble to be acquired, constructed, recon-structed, rehabilitated or installedunless they are eligible pursuant to§ 570.201(c) or § 570.203(b). or werepreviously eligible under any of theprograms consolidated by the Act(except the public facilities loan pro-gram, the model cities program, and asan urban renewal local grant-in-aid eli-gible under section ll0(d)(3) of Hous-ing Act of 1949) and cited in § 570.1(b).Activities undertaken to make facili-ties and improvements otherwise ineli-gible for development with block grantassistance accessible to the elderly andhandicapped through removal of ar-chitectural barriers, or for the pur-poses of historic preservation pursuantto §§ 570.201(k) and 570.202(f), respec-tively, are eligible for assistance withblock grant funds and are not pre-cluded by this section. Where acquisi-tion of real property includes an exist-ing improvement which is to be uti-lized in the provision of an ineligiblepublic facility, the portion of the ac-quisition cost attributable to such im-provement, as well as the cost of anyrehabilitation or conversion undertak-en to-adapt or make the property suit-able for such use, shall be ineligible.Examples include the following.

(1) Buildings and facilities for thegeneral conduct of government, cannotbe provided with block grant assis-tance, such as city halls and otherheadquarters of government where

the governing body of the recipientmeets regularly and which are pre-dominantly used for municipal pur-poses, courthouses, police stations andother municipal office buildings:

(2) Other facilities and improve-ments, which may not be providedwith block grant funds unless they aredetermined by HUD to be necessaryand appropriate to the implementa-tion of an applicant's strategy for com-munity development and housing inaccordance with §§ 570.201(c)(14) or570.203(b), include:

(1) Facilities used for exhibitions,spectator events and cultural pur.poses, Including stadiums, sportsarenas, auditoriums, concert halls, cul-tural and art centers, convention cen-ters and exhibition halls, museums,central libraries, and similar facilities,For the purpose of this paragraph, li-braries (including central libraries inunits ,of general local governmentunder 25,000 population where the cri-teria set forth in § 570.201(c)(4)(1l) aresatisfied), cultural, art and museum fa-cilities which meet the requirementsfor neighborhood facilities set forth in§ 570.201(c)(4) are considered neigh-borhood facilities and are thereforeeligible for assistance.

(Ii) Schools and educational facili-ties, (including elementary, secondary,college, and university facilities). Forthe purpose of this paragraph.

A neighborhood facility, seniorcenter or center for the handicappedin which classes in practical and voca-tional activities (such as first aid, ho-memaking, crafts, independent living,etc.) are among the services providedis not considered as a school or educa.tional facility;

(iii) Airports, subways, trolley lines,bus or other transit terminals, or sta-tions, and other transportation facili-ties, (excluding railroad spurt assistedpursuant to § 570.203(c)).

(iv) Hospitals, nursing homes andother medical facilities. For the pur-pose of this paragraph, a neighbor-hood facility, senior center, center forthe handicapped, which provide gener-al health services Is not considered tobe a medical facility.

<v) Treatment works for sewage orindustrial wastes of a liquid nature,consisting of the various devices usedin the .treatment of sewage and com-mercial and industrial wastes of aliquid nature, including the necessaryinterceptor sewers, outfall sewers,actual treatment facilities, pumpingstations, power and other equipment,and their appurtenances. The term"interceptor sewer" means a linewhich has as Its primary purpose thediversion or transmission of sewagefrom a collection system to a treat-ment facility, and applies to the fol-lowing:

(A) In those situations where raw orinadequately treated sewage Is being


8446


discharged from an existing publicsewer, those sewer lines, whether grav-ity or force, and any pumping stationsor other appurtenances thereto whichare necessary to prevent or eliminatethe discharge into any waterway ofraw or inadequately treated sewagefrom an existing point or points of dis-charge in a public system are not eligi--ble. This includes any necessary pump-ing stations, force mains or other ap-purtenances thereto; and

(B) In all other situations, the lineor lines which divert the flow to thetreatment facility from the point ofnatural discharge of a collectionsystem, where no treatment to be pro-vided, including any necessary pump-ing stations, force mains or other ap-purtenances are not eligible.

(b) Purchase of equipment. The pur-chase of equipment with block grantfunds is generally ineligible.

(D Construction equipment. Thepurchase of construction equipment isineligible, but compensation for theuse of such equipment through leas-ink, depreciation or use allowances

- pursuant to Attachment B of OMBCircular A-102 for an otherwise eligi-ble activity is an eligible use of blockgrant funds. An exceptioniis the pur-chase of construction equipmentwhich is used as a part of a solid wastedisposal facility which is eligible forblock grant assistance pursuant to§ 570.201(c)(5), such as a bulldozerused at a sanitary landfill

(2) Furnishings and personal proper-ty. The purchase of equipment, fix-tures, motor vehicles, or furnishings orother personalty not an integral struc-tural fixture is ineligible, except whennecessary for use by a recipient or itssubgrantees in the administration ofits Community Development ProgramPursuant to § 570.205(d), or as a partof a public service -pursuant to§ 570.201(e).

(c) Operating and maintenance ex--penses. The general rule is that anuiexpense associated with operating,maintaining or repairing public facili-ties and works or any expense associat-ed with providing public services notassisted with block grant funds is ineli-gible for assistance. However, operat-ing and maintenance expenses associ-ated with providing public services orinterim assistance otherwise eligiblefor assistance under this Part may beassisted. For example, the cost of apublic service being operated withblock grant funds in a neighborhoodfacility may include reasonable ex-penses associated with operating the.

public service within the facility, In-cluding costs of rent, utilities andmaintenance.

Examples of activities which are noteligible for block grant assistance are:

(1) Maintenance and repair ofstreets, parks, playgrounds, water andsewer facilities, neighborhood facUl-ties, senior centers, centers for thehandicapped, parking and similarpublic facilities. Examples of mainte-nance and repair activities for whichblock grant funds may not be used in-clude the filling of pot holes in streets,repairing of cracks in sidewalks, themowing of recreational areas, and thereplacement of expended street lightbulbs.

(2) Payment of salaries for staff,utility costs and similar expenses nec-essary for the operation of publicworks and facilities; and

(3) Expenses associated with provi-sion of any public service which is noteligible for assistance pursuant to§ 570.201(e).

(d) General government expenses.Expenses required to carry out theregular responsibilities of the unit ofgeneral local government are not eligi-ble for assistance under this part. Ex-amples include all ordinary generalgovernment expenditures not relatedto the Community Development Pro-gram and not related to activities eligi-ble under this subpart.

(e) Political activitie No expendi-ture may be made for the use of equip-ment or premises for political pur-poses, sponsoring or conducting candi-dates' meetings, engaging in vo.ter reg-istration activity or voter transporta-tion or other partisan political activi-ties.

(f) New housing construction. Assis-tance may not be used for the con-struction of new permanent residen-tial structures or for any program tosubsidize or finance such new con-struction, except as provided underthe last resort housing provisions setforth in 24 CFR Part 43, or pursuantto § 570.204(c)(4). For the purpose ofthis paragraph, activities in support ofthe development of low- or moderate-income housing in accordance with anapproved Housing Assistance Plan in-cluding clearance, site assemblage,provision of site and provision ofpublic improvements and certain hous-ing preconstruction costs set forth in§ 570.205(d)(7), are not considered asprograms to subsidize or finance newresidential construction.

(g) Income payments. The generalrule is that assistance shall not beused for income payments for housing

8447

or any other purpose. Examples of in-eligible income payments include thefollowing: payments for income main-tenance, housing allowances, downpayments and mortgage subsidies.

I. Conforming changes are made topart 570 as follows:

§570.403 [Amened]1. In §5"70.403(h). the reference to

"§ 570.200(a)" Is changed to"§ 570.201(c)(4)."

§ 570.405 [Amended]2. In § 570.405(b), the reference to

"§ 570.200" Is changed to "Subpart C."§ 570.407 (Amended]

3. In § 570.407(d), the reference to"§570.200" is changed to "Subpart C."

§ 570.512 [Amended]4. In § 570.512(e), the reference to

"§ 570.200" is changed to "Subpart C."

§ 570.601 [Amended]5. In § 570.601(bX4XIII), the refer-

ence to "§ 570.200" is changed to "Sub-part C."

§ 570.607 [Amended]6. In § 570.607. the references to

"§ 507.200(aX8)," "§ 570.200(b)," and"§ 570.200(a)(2)" are changed to"§ 570.201(e)," "§ 570.200(c)," and"§ 570.201(c)(13)," respectively.

§ 570.801 [Amended]7. In § 570.801(b)(1)(li), the refer-

ences to "§ 570.200" are changed to"Subpart C."

§ 570.907 [Amended]8. In § 570.907(h), the references to

"§ 570.200(a)(8)" and "§ 570.200(a)(2)"are changed to "§ 570.201(e)" and"§ 570.201(c)(13)," respectively.

§ 570.909 [Amended]9. In § 570.909(fXl)(), the reference

to "§ 570.200" is changed to "SubpartC.".

(Title I. Housing and Community Develop-ment Act of 1974 (42 U.S.C. 5301 et seq.);Title 1, Housing and Community Develop-ment Act of 1977 (Pub. 1. 95-128); and sec.7(d), Department of Housing and Urban De-velopment Act (42 U-.C. 3535(d)).)


RoB=RT C. EiMRy, Jr.,Assistant Secretary for Commu-

nity Planning and Develop-ment.

[F Doc. 78-5179 Filed 2-23-78; 2:24 pml

FEDERAL REGISTER, VOL 43, NO. 41-WENESDAY, MARCH 1, 1978

J

- -

WEDNESDAY, MARCH 1, 1978

PART IV

DEPARTMENT OFHOUSING


Office of theAssistant Secretary for

Community Planning andDevelopment

U-

COMMUNITYDEVELOPMENTBLOCK GRANT

PROGRAMEntitlement Grants

[4210-01]


CHAPTER V-OFFICE OF THE ASSISTANT SEC-RETARY FOR COMMUNITY PLANNING ANDDEVELOPMENT, DEPARTMENT OF HOUSINGAND URBAN DEVELOPMENT

[Docket No. R-78-4711


Subpart D--Entlement Grants


ACTION: Final rulemaking.

SUMMARY: HUD is issuing final ruleson Subpart D of the regulations forthe Community Development BlockGrant Program governing applicationsfor entitlement grants. These ruleshave been revised to:

(1) Ensure that community develop-ment programs carried out with blockgrant funds meet statutory objectives,particularly the objective of providingdecent housing, a suitable living envi-ronment, and expanded economic op-portunities principally for persons oflow- and moderate-income;

(2) Enhance the opportunity for citi-zens to participate in planning, imple-menting, and assessing the program;

(3) Provide for improved planningwhich coordinates housing assistanceand community development pro-grams and encourages a comprehen-sive approach to dealing with urbanproblems; and

(4) Rationalize the application pro-cess by reducing the frequency of sub-mission of the Community Develop-ment and Housing Assistance Plans toonce in three years, making themmore substantive documents, and sim-plifying the annual application.

EFFECTIVE DATE: Unless otherwiseindicated in the regulations, these re-quirements are effective for all appli-cations received in HUD on or afterMay 1, 1978.


Harriet L. Frank, Beverly M.Harvey, or David J. Pollack, Pro-grams Standards Division Communi-ty Planning and Development, De-partment of Housing and Urban De-velopment, 451 Seventh Street SW.,Washington, D.C. 20410, 202-755-6304-755-6306.

SUPPLEMENTARY INFORMATION:On October 25, 1977, proposed revi-sions to Subpart D were published inthe FEDERAL RECISTER (42 FR 56450)for public comment. Interested partieswere given until November 25, 1977, tosubmit written comments. A total of1,327 letters of comment were re-ceived. All comments were consideredcarefully in revising these rules for


final effect. The following summarizesthe significant recurrent commentsand the changes that were made.

PLANNING CONSIDERATIONS

Public comments tended to supportthe general approach of encouragingcomprehensive planning and use ofblock grant funds in a concentratedmanner, but criticized the specific pro-visions for being too restrictive. Com-ments by local officials and public in-terest groups tended to be in agree-ment in both areas. Cities which likedthe approach felt that it would facili-tate longer range planning and makefor more effective programming. Com-ments from public interest groupsstated their expectation that theseprovisions would result in more fundsbeing targeted to lower-income neigh-borhoods.

The specific criticisms that Weremade were as follows. Many com-menters felt that the rules were tooprescriptive in that they appeared tomake comprehensive neighborhood re-vitalization programs mandatory.They concluded that all block grantrecipients had to use funds in a con-centrated manner, and that scatteredprograms. were not permitted evenwhere they were appropriate for theparticular community and benefitedlow- and moderate-income persons.

The definition of comprehensiveneighborhood revitalization areas wascriticized by both local government of-ficials and public interest groups. Thecommenters objected particularly tothe requirement that such areas be ofmanageable size and condition and tothe three to five year time limit forsubstantially meeting the housing andcommunity development needs of thearea. They stated that this would pre-vent localities from undertaking com-prehensive programs in the worstareas and that it would require desig-nating areas that were to small toopermit effective citizen participationor delivery of services.

Other recurrent comments were:(1) That comprehensive programs

should not be limited to residentialareas-this comment was made by nu-merous localities that did not meet theUDAG distress criteria; and

(2) That this appeared to require anadditional plan and the relationship ofthat to the three-year community de-velopment plan was not clear.

This section has been substantiallyrevised in response to the comments.Section 570.301(a) is now headed"Comprehensive Strategies." It statesthe basic planning efforts required ofall applicants for block grants and ex-plicitly recognizes that each applicanthas discretion to develop strategies ap-propriate to local needs and condi-tions. Paragraph (b) is headed "Co-ordination of Programs" and describesthe block grant funded activities and

related HUD programs which may beundertaken where community devel-opment activities are being carried outin a concentrated manner and encour-ages localities to designate appropriateareas for concentrated action.

Paragraph (c) is headed "Neighbor-hood Strategy Area" which is the termbeing adopted to refer to areas whereconcentrated programs are being car-ried out. This is more flexibly definedthan the "Comprehensive Neighbor-hood Revitalization Area" term whichIt replaces. It eliminates the three tofive year time limit. Rather, it pro-vides that the size of the area shouldtake into account the conditions andthe extent of resources to be providedso that substantial long-term improve-ments can be accomplished within areasonable time. The size and condi-tion of the areas to be selected are atthe discretion of the applicant so longas the resources provided are suffi-cient to truly constitute a concentrat-ed approach to meeting the needs ofdesignated areas.

There was considerable favorablecomment on the multiyear program-ming provisions which have been re-tained. There were no other signifi-cant comments.

PROGRAm BENEFIr TO LOW- ANDMODER-IN cOME PERSONS

These provisions received extensivecomment from a wide range of localgovernments, public interest groups,and individuals. In general, local gov-ernment officials objected to the rule.While most agreed that the principalbenefit of the block grant programshould be for low- and moderate-income persons, they felt that the ruleas proposed was too restrictive, that itwould limit local initiative and flexibil-ity, and would create paperwork andadministrative burdens. These commu-nities objected both to the overall per-centage requirement for the use offunds for the benefit of low- and mod-erate-income persons, and to many ofthe detailed provisions such as thedefinition of low- and moderate-income service areas and the limita-tions on the kinds of projects whichcould be carried out as exceptions tothe low- and moderate-income benefitprovisions.

On the other hand, many groups en-dorsed the rule. These commentersfelt that a higher proportion of fundsshould be used for the benefit of low-and moderate-income persons, andthat some of the detailed provisionsshould be tightened to prevent abuse.

The final rule continues the empha-sis on principally benefitting low- andmoderate-income persons. The ruleprovides that an application shall bepresumed to benefit low- and moder-ate-income persons where the appli-cant proposes that not less than 75percent of the program funds be used



for projects and activities which bene-fit low- and moderate-income personsas defined ii the rule. Such a pre-sumption, while not determinative,shall relieve the applicant, in the ab-sence of substantial evidence to the-contrary, from any examination byHUD prior to funding to determinewhether or not the program as awhole principally benefits low- andmoderate-income persons. All otherapplications shall be subject to exami-nation by HUD prior to funding to de-termine whether they principallybenefit low- and moderate-income per-sons. In making this determination,HUD will consider the information inthe applicant's community develop-ment plan, the specific needs of lower-income persons in the applicant's ju-risdiction, and past expenditure pat-terns in areas having concentrations oflower-income persons. All programs,whether entitled to the presumptionor not, shall be subject to monitoringby HUD to ensure that low- and mod-erate-income persons are principallybenefitted by the program as a whole.

The reasons for adopting this ruleare as follows. It was decided that itwas necessary to require in the reguIa-tions for the first time that the blockgrant program should principallybenefit low- and moderate-income per-sons, and to provide clearer and morespecific rules and review standards toassure that this occurred. None of thealternative 'approaches suggested ap-peared workable; -they did not providea standard which could be adminis.tered in a fair and consistent fashion.Yet it was recognized that a rigid per-centage requirement would undulylimit applicants. It was therefore de-cided to adopt a modified rule whichprovides a reasonable measure of flexi-bility and responsiveness to variedlocal circumstances.

The comments made on the specificprovisions, and the changes made inresponse to those comments are as fol-lows:

GmEmALSection 570.302(a) is now called Stat-

utory Provisions and cites the statu-tory sections on which this rule isbased. Section 570.302(b) is now calledGeneral Requirements and containsthe rules formerly in paragraph (a),revised as follows:.

Paragraph 570.302(b)(1) states thatall projects and activities must eitherprincipally benefit low- and moderate-income persons, or prevent or elimi-nate slums and blight, or meet othercommunity development needs havinga particular urgency. This is the rulewhich was originally published as570.303(b)(51 in the FEDERAL RclS'aof February 2, 1977. It is based on themaximum feasible priority language ofSection 104(b)(2) of the Act which setout the three categories of projects forwhich block grant funds could be used.

Paragraph 570.302(b)(2) states thatthe program as a whole shall princi-pally benefit low- and moderate-income persons. Paragraph570.302(b)(3) contains the provisionthat programs In which at least 75 per-cent of the funds are budgeted for pro-jects defined as principally benefittinglower-income persons shall be pre-sumed to meet this requirement,absent substantial evidence to the con-trary.

Numerous commenters who objectedto the percentage requirement alsoquestioned the legal basis for this rule.These commenters noted that thestatute does not have any quantitativestandard for benefits to low- and mod-erate-income persons and simply re-quires that applicants give maximumfeasible priority to activities whichbenefit low- and moderate-income per-sons or prevent or eliminate slums andblight. They therefore questionedHUD's authority to give greaterweight to one category of project.While this view has been fully consid-ered, It was concluded that the re-quirement is statutorily permissible interms of the specific programmatic re-quirements and the stated primary ob-jective of the Act.

Subparagraph 570.302(b)(3) also pro-vides that the determination of theamount of funds benefitting low- andmoderate-ncome persons will be basedon the amount of program funds to beavailable during the three year periodcovered by the applIcant's CommunityDevelopment and Housing Plan. Thissubstitutes for the provisions In Sec-tion 570.302(d)(5) of the proposedrules regarding adjusting the amountof funds which must be used for pro-jects which principally benefit low-and moderate-income persons by theamount by which such expenditureshave exceeded 75 percent in previousyears. The reason for this is to facili-tate long range planning by providingan assured source of funding for pro-jects which otherwise meet these re-quirements. It is noted that Section570.304(c) requires a three year actlv-ity summary which describes the pro-jects to be carried out over a threeyear period, their locations and theamounts of block grant and otherfunds to be provided. The new applica-tion forms to be used effective August1, 1978, will clearly display the Infor-mation required to make these deter-minations on a three year basis and tohold cities accountable for using pro-gram funds in accordance with theThree-Year Plan.

Subparagraph (4) is new and re-sponds to the numerous comments re-garding the paperwork and other diffi-culties anticipated in order to complywith this rule. lany commentersnoted that census data is now out ofdate and in many cases no longer accu-rately represents existing conditions;

that neighborhoods or other geo-graphic areas to be served by particu-lar projects are generally not cotermi-nous with census tract boundaries; andthat the effort to qualify areas for as-sistance could lead to gerrymanderingand deflect attention from the qualityof programming. In response, this newprovision states that the applicant'sdeterminations that projects principal-ly benefit low- and moderate-incomepersons may be based on a variety ofdata including 701 planning studies,local surveys, etc; and that the appli-cant shall maintain such documenta-tion In Its files. Where at least 75 per-cent of program funds are budgetedfor projects which principally benefitlow- and moderate-income persons,HUD will accept the applicant's deter-mfinations; otherwise. HUD will exam-ine the proposed activities to ensurethat the programs as-a whole princi-pally benefits lower-income persons.HUD will monitor the applicant's per-formance to assure that the projectsbeing carried out with block grantfunds principally benefit low- andmoderate-income persons. Our inten-tion Is tor carry out the statutory ob-Jective of benefitting low- and moder-ate-income persons in a strong andcommitted fashion. At the same time,we intend to be practical and flexibleregarding documentation. Applicantsneed to know the income characteris-tics of areas within their jurisdictionsin order to design programs to meetstatutory requirements, and documen-tation reflecting that knowledge mustbe maintained in the applicant's files.However, we do not intend that appli-cants be restricted, in their program-ing by obsolete data or irrelevant geo-graphic boundares. Rather, we expectthat applicants will be able to make areasonable case that projects carriedout with block grant funds principallyserve low- and moderate-income per-sons based on pertinent generallyavailable information.

SuBparagraph (5) contains the provi-sion for benefitting low income per-sons which was previously in§ 570.302(aX2). Numerous commentsregarding this were made by public in-terest groups concerned with theneeds of lower income persons. Manyfelt that a more specific rule is neededwhich would require that expendituresfor low-income, as compared withmoderate-income persons, be in pro-portion to such persons' share of thelow- and moderate-income population.These commenters expressed concernthat cities would neglect the neediestparts of their population in favor ofthose relatively more- effluent. Thesecomments were considered at lengthand it was decided that a quantified_requirement for benefits to low-income persons should not be adopted.The reasons are that there is no evi-dence that there is a significant pat-


8451


tern of neglect of low-income personsin favor of moderate-income persons,who are defined as members of house-holds whose Income does not exceed80 percent of the SMSA or state non-metropolitan median, and that an ad-ditional quantitative standard wouldgreatly complicate local planning andprograming. However, the words"which can be carried out with avail-able resources" were deleted sincemany read this as diluting the commit-ment to assuring that the needs of lowincome persons were addressed. Thissection provides a clear basis for deal-ing with abuses and HUD intends toenforce it.

REviEw GumEmEL s

The provisions in paragraph (c) arenew and Indicate how the modifiedstandard will be administered. Subpar-agraph (1) provides that, absent sub-stantial evidence to the contrary, HUDwill presume that an application prin-cipally benefits low- and moderate-income persons where at least 75 per.-cent of the program funds are for pro-jects which meet the definitions ofprincipally benefitting lower-incomepersons. Subparagraph (2) providesthat HUD will subject all other appli-cations to an examination prior tofunding to determine whether the ac-tivities proposed constitute a programwhich principally benefits low- andmoderate-income persons, and indi-cates some of the factors that shall betaken into account in making that de-termination.

PRoJEcTS WHicH BENEFIT Low- ANDMODERATE-INCOME PERSONS

These provisions, which were previ-ously in the proposed paragraph570.302(b), received the greatestnumber of comments made on the spe-cific provisions of the general rule.

It is apparent from these commentsthat most of the local governmentsthat objected to the overall percentagerequirement were particularly trou-bled by the combination of that re-quirement with the tight definitionsof projects which would be creditedtoward meeting it. These commentersstated that the proposed rules wouldimpede and even prevent effective pro.graming. The specific comments were:Numerous local governments, particu-larly cities in the south and west, andurban counties, stated that they hadno areas, or very few areas, in whichlow- and moderate-income personsconstituted a majority. Others feltthat the definitions of projects princi-pally benefitting low- and moderate-income persons were too restrictiveand would limit comprehensive pro-gramming in certain transitional areasin which funds could be used to greateffect.

Comments were made that targetingfunds into areas with a majority of

low- and moderate-income residentswould work against the legitimate,statutory objective of spatial decon-centration, of minorities and low- andmoderate-income persons; that excep-tions should be made for areas thatare economically diverse when blockgrant funds were being used to pro-mote such diversity; and that provi-sion should be made for activitieswhich encourage the provision of sub-sidized housing for low-income personsoutside areas of lower-income concen-tration. Some commenters questionedthe definitions of low- and moderate-income, and proposed alternativessuch as defining them as 100 percentand 120 percent of the Standard Met-ropolitan Statistical. Area (SMSA) orstate nonmetropolitan median in-comes, or having a national standard,or defining them in comparison to theapplicant's median income. Some pro-posed that low- and moderate-incomeareas be defined as areas with concen-trations of lower income persons ex-ceeding the average of such persons Inthe SMSA or the community. Somesuggested that the absolute number oflow- and moderate-income persons tobe served be considered, not only theproportion of such persons in a givenarea, since they felt that the proposedrules would prevent benefits to largenumbers of lower income persons whoreside in areas where they do not con-stitute a majority.

On the other hand, numerous publicinterst groups concerned with lowerincome persons felt that the rule wastoo permissive since it counted as alow- and moderate-income benefit pro-ject one which benefitted as much as49 percent higher income persons.Many felt that the cost of each projectshould be prorated to the extent thatit benefits low- and moderate-incomepersons. Some felt that low- and mod-erate-income projects should be limit-ed to those which provide direct bene-fits to low- and moderate-income per-sons. They objected to including pro-jects which benefitted geographicareas where higher income personswould also receive benefits. Finally, anumber of commenters felt that theprovision that projects defined as prin-cipally benefiting low- and moderate-income persons.must meet Identifiedneeds of low- and moderate-incomepersons should be strengthened andspecific standards for meeting it beprovided.

After careful consideration of thefull range of comments, it was decidedthat this section should be modified inorder to provide needed flexibility andresponsiveness to varied local circum-stances and permit effective program-ming. We could not agree that pro-jects that benefit low- and moderate-income persons should be limited toprojects which provide direct benefitsto such persons. Direct benefits con-

sists of rehabilitation financing andpublic services. It is noted that manylower-income persons cduld not affordto repay loans or pay increased rents,although lower-income homeownersmay benefit from direct grants, and,therefore, could not directly benefitfrom most rehabilitation programs.Public services are limited by the Actto areas in which physical develop.ment activities are being carried out Ina concentrated manner and where thepublic services are necessary to Sup-port such physical development activi-ties. As a practical matter, it Is, there-fore, generally not possible to use theblock grant program exclusively forprovision of benefits directly to lower-income Individuals. Furthermore, re-stricting local programming in suchfashion would effectively preventcities from providIng needed facilitiessuch as neighborhood facilities, pools,playgrounds, to the majority of lower-income persons, since some higher-income persons might also benefit.

The definitions of projects whichbenefit low- and moderate-income per-sons have been revised as follows:First, the requirement that such pro-jects must be designed to meet Identi-fied needs of low- and moderate-income persons as described in the ap-plicant's Community DevelopmentPlan has been moved to the beginningfor greater emphasis. The distinctionbetween projects benefitting low- andmoderate-income areas and projectsbenefitting low- and moderate-incomepersons has been eliminated because Itproved to be confusing. Rather, thecategories of projects now Include pro-jects with income eligibility require-ments that limit the benefits to low-and moderate-income persons, andprojects which do not have incomelimits but which principally benefitlow- and moderate-income persons inan area delineated by the applicant.The rule makes clear that such areasneed not be coterminous with censustracts, but rather may consist ofneighborhoods or other locally definedareas to be served by a given project,

The category of projects benefittinglow- and moderate-ncome persons Indelineated areas has been expanded toinclude areas with less than a majorityof low- and moderate-income personsfor localities whose low- and moderate-income residents are dispersed andwhere It is not possible or appropriateto target funds to areas where low-and moderate-income residents consti-tute a majority.

Economic development projects arenow described as projects designed tocreate permanent employment forlow- and moderate-income persons.Projects to attract or retain commer-cial facilities in lower Income neigh-borhoods are now listed as an exampleor projects benefitting delineatedareas.


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Removal of architectural barriers isadded to the list of projects generallyassumed to benefit-low- and moderate-income persons in response to anumber of comments and questions.

PROJECTS WHICH PREVENT ORELIMINATE SLUMS AND BLIGHT

Paragraphs (e) and (f) now containthe rules formerly listed under theheading of "Exceptions" in paragraph(c). The new headings conform to thethree categories of activity in themaximum feasible priority language ofthe Act.

Local government officials who com-mented on these provisions generallyregarded them as too restrictive. Manystated that the overall percentage re-quirement for the use of funds wassufficient to assure principal benefit tolow- and moderate-income persons,and that the activities permitted withthe remainder of the grant shouldtherefore be more flexibly defined.Specific comments included the fol-lowing. Economic development activi-ties should not be limited to localitiesmeeting the distress criteriafor UrbanDevelopment Action Grants sincemany other cities are distressed rela-tive to their regions, or have distressedareas within their jurisdiction; theslum and blight category should in-elude commercial revitalization; thelimit on such activities should be 33percent rather than 25 percent; therule effectively prevents most historicpreservation activities; the category of"elimination of detrimental condi-tions" should be expanded to includeactivities such as relocation and siteimprovements.

Certain groups which commentedopposed the provision permitting ac-tivities to attract higher income resi-dents. They were concerned that suchactivities would displace lower incomepersons and felt that it was inappro-priate to use block grant.funds to aidhigher income persons. Many recom-mended that where block grant fundswere used to encourage constructionor rehabilitation of higher incomehousing, the rules require that a speci-fied proportion of the housing units,such as 20 percent, be reserved forSection 8 assistance.

There were numerous commentsabout- urban renewal completion. Anumber of local governments recom-mended that there be no limit on theuse of funds for this purpose and thatcities should be encouraged and aidedin completing such projects. It wasalso recommended that completion ofurban renewal projects which princi-pally benefit low- and' moderate-income persons should be creditedtoward meeting the 75 percent re-quirement.

The following changes have beenmade in response to these comments.The first category has been redefined

as projects in areas which meet thedefinition of an urban renewal or simi-lar area under state law and in which

"the applicant undertakes a compre-hensive program to remedy the condi-tions which qualify the area. Thereason for redefining the concept ofcomprehensive slum and blight pre-vention and elimination projects wasto provide a definition that was moreflexible and easier to understand andapply. It was observed that the previ-ous definition led to the conclusionthat comprehensive neighborhoodprograms were permitted only in areaswhich were not predominantly low-and moderate-income and that readerswere uncertain as to how extensive thedeterioration had to be In order toqualify an area. This category now in-crudes commercial as well as residen-tial areas, as numerous cities recom-mended.

The second category, elimination ofdetrimental conditions, has been ex-panded to include relocation, since ac-quisition and demolition generally ne-cessitate relocation payments and as-sistance. It has also been expanded toinclude historic preservation sincethat Is a statutory objective and weagree that the previous provision wastoo limited. However, we did not addsite improvements since It was our spe-cific intention to prevent use of blockgrant funds for public Improvementsand facilities In areas which were nei-ther predominantly low- and moder-ate-income nor blighted. Provision ofoften costly improvements and facili-ties on a scattered basis not part of astrategy to aid low- and moderate-income persons or prevent or elimi-nate slums and blight is generally notconsonant with the objectives of theAct and is therefore deliberately pre-cluded by this rule.

The provision on completion of Fed-erally assisted urban renewal projectshas been clarified to indicate that pro-Jects which principally benefit low-and moderate-income persons arecounted as sudh. Activities necessaryto complete renewal projects which donot principally benefit lower-incomepersons shall not be included in thoseactivities benefitting lower-incomepersons, but shall be recognized as ac-tivities which prevent or eliminateslums and blight.

The category of activities which maybe undertaken only by distressed citieshas been eliminated. Regarding eco-nomic development, it was decidedthat limiting such activities to dis-tressed cities would be inappropriatefor certain cities that did not meet theAction Grant distress criteria butnonetheless had a real need to en-hance their economic viability. The re-striction had been proposed in order toavoid the use of block grant funds forcommercial or industrial developmentsin cities which were relatively affluent

and had strong economies, where theeconomic development activities wouldnot principally benefit low- and mod-erate-income persons. We have con-cluded that we can accomplish thesame result in a fashion more respon-sive to individual city conditions by ap-plying the "plainly inappropriate" cri-teria for disapproval of applications in§ 570.311 of these regulations. The spe-cial category of attracting higherincome residents has been eliminatedaltogether. Attracting higher incomeresidents is a statutory objective andapplicants can develop strategiestoward that end. Such strategies maybe accomplished through projectswhich principally benefit low- andmoderate-income persons, or throughslum prevention and elimination ac-tivities permitted by these regulations;,they do not constitute a separate cate-gory of activity and are no longer sep-arately described.

P o~crs DImu To M NErsHAvnqQ A PARTICULAR URGENCY

Some commenters stated thaturgent needs should not be subject tothe limitation on expenditures for pro-jects and activities not benefitting low-and moderate-income persons. Othersfelt that the requirement that theneeds mtut be of recent origin shouldbe eliminated. A number of com-menters wanted specific criteria fordetermining that other sources offunding were not available, and for de-termining that the applicant could notfinance the activities on Its ownL

We considered the comments and de-cided not to change this section. Wefeel that urgent needs should be sub-ject to the same limitation as activitiesto prevent and eliminate slums andblight since that is consonant with theprimary objective of the Act. The re-quirement that the need be of recentorigin is consistent with currentpolicy, which has proved workable. Ifa need Is not of recent origin, and acommunity has not acted to address it,the urgency of the need becomes ques-tionable. We considered developingspecific criteria for determining localcapacity to finance and availability ofother resources and found this effortimpractical due to the great range ofcircumstances which would have to beprovided for.

ComuN=G BENzT TO Low- AsnMonaRATZ-IUc0=g PERSONS

There were numerous commentsfrom public interest group objectingto the credit for previous expendituresexceeding 75 percent of the grant forthe benefit of low- and moderate-income persons. That provision hasbeen eliminated. The other recurrentcomment was that urban renewal loanrepayment should not be excludedfrom the computation of funds usedfor the principal benefit of such per-

FEDERAL REGiSTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978

8453

sons. We did not accept that becauseof the large amount of outstandingloans with Federal guarantees and theimportance we attach to assuring thatadequate resources are available forrepayment.

The substantive changes in this sec-tion are as follows: A provision hasbeen added, stating that where a pro-ject consisting of several activitiesdoes not principally benefit low- andmoderate-income persons, but a par-ticular activity -does, the applicantmay consider credit that activity as alow- and moderate-income benefit..This Is intended to encourage pro-gramming for such persons. Finally, aprovision has been added that thenature and result of a project will de-termine whether a project benefitslow- and moderate-income.pers6ns, notsimply geographic location. This is toassure attention to the purpose andsubstantive effect on such persons.

MITIGATING ADVERSE EFFECTS

Numerous comments were made ex-pressing concern about anticipated dis-placement as a result of block grantfunded activities and recommendingstronger provisions. A number of com-menters recommended that HUD re-quire a specific relocation plan to besubmitted by each applicant. Othersrecommended that HUD prescribe thetypes of actions applicants would haveto take to mitigate adverse effects, forexample, instituting rent controls inareas where block grant funds wereused for rehabilitation-of rental prop-erties. Some felt that the rules shouldprohibit displacement, not simply re-quire that the effects of such displace-ment be mitigated. On the other hand,some commenters felt that this provi-sion worked against spatial deconcen-tration objectives, since It appeared torequire that persons stay in the sameneighborhood in all cases.

The Department is most concernedabout the problems of displacement oflower income persons as a result ofneighborhood change, and is consider-ing what additional programs and poli-cies are required to deal with this.Nevertheless, we concluded that itwould not be appropriate or effectiveto make these rules more restrictiveOur experience in predecessor categor-ical grant-in-aid programs was thatspecific relocation plans did not prevent displacement nor assure that relocation was carried out in a human(fashion due to:

(1) The time that elapsed betweerdevelopment of the plans and actua:displacement;

(2) The difficulty of controlling relo,cation workload and provision of nevhousing resources; and

(3) Other factors.

Moreover, the context of a block graniprogram, Including a statutory 75-da3


review period, does not lend Itself toreview of detailed relocation plans.

Regarding steps to be taken to miti-gate adverse effects, we feel that thisis best left to the applicant at the pre-sent time since local conditions varyand steps which may be workable andeffective for some could be damagingto others. Nor did we feel that wecould prohibit displacement entirely,since in many cases that would pre-vent neighborhood revitalization ac-tivities. Rather than adopting theserecommendations, the Departmentwill rely on monitoring of programsand working directly with local gov-ernments to assure that programs arecarried out in a manner which mini-mizes hardships to lower income per-sons, and assists them to remain in ex-isting neighborhoods, if that is whatthey prefer.

CITIZEN PARTICIPATIONAs with to the provisions on pro-

gram benefit to low- and moderate-income persons, the proposed citizenparticipation provisions received ex-tensive comment from local govern-ments, public interest groups and in-dividuals. Again, there was a clear de-marcation between the comments oflocal government officials and theirassociations on one hand, and thecomments of legal aid societies, neigh-borhood organizations, civil rights or-ganizations, and other public interestgroups on the other. In general, theformer groups objected to the pro-posed rule, primarily due to the in-creased level of detail of the require-ments and the additional administra-tive expense which would be involvedin implementing them. In contrast,the public interest groups generallysupported the rule as a marked im-provement over previous regulations,but many wanted It strengthened.

Comments made on the specific pro-visions, and the changes made in re-sponse to those comments are as fol-lows:

§ 570.303(a)-GEnERALSeveral commenters expressed con-

cern that the regulations create expec-tations among citizens that they canrestrict the local government's author-ity over the program, while the statuteexpressly reserves that authority. Inorder to emphasize that citizens mustbe afforded an opportunity to provide

advice to the local government regard-ing the progiam, but they do not havethe power under these regulations toveto the elected government's deci-sions, the first sentence of paragraph570.303(a) has been revised to statethat the applicant shall provide citi-zens with an adequate opportunity toparticipate "in an advisory role" inplanning, implementing, and assessingthe program.

§ 57o,303(b)-wIrrTE CITIZENPARTICIPATION PLAN

The proposed regulations statedthat the applicant's written citizenparticipation plan had to be followedbeginning with the preparation of thefirst application to be submitted toHUD on or after the effective date ofthe regulations. Many comments weremade that a longer lead time wasneeded in which to prepare the plan,particularly since another provisionrequires citizen involvement in theplan's development. To help ensurethe adoption of well-devised plans, thefinal rule states that the plan shall gointo effect no later than August 1,1978.

Many commenters recommended re-quiring submission of the plan to HUDfor review. After careful consideration,It was decided that submission of citi-zen participation plans by all commu.nities should not be required, princ.pally because HUD does not have suf-ficient staff to review adequately all ofthe thousands of plans. It Is felt thatHUD's limited staff resources can beused more effectively In resolving com-plaints and findings regarding citizenparticipation.

§ 570.303(C)-STANDARDS OFPARTICIPATION

A large number of public interestgroups recommended that citizen par-ticipation structures be required atboth the neighborhood and communi-ty-wide levels. The proposed regula-tions called for a citizen participationprocess at both levels, The term "pro-cess" has been retained in the finalrule in recognition of the diverse sizeand political traditions of program ap-plicants. The inflexibility of requiringall communities to established formalcitizen participation structures, re-gardless of the effectiveness of exist-ing arrangements, was also considered,We believe that the exact form of thecitizen participation process Is notcritical; what is important is that theprocess meet prescribed standards.

Many smaller communities com-plained that a two tier process of par-ticipation (i.e., communitywIde andneighborhood) would be burdensomeand of no value in smaller communi.ties. They pointed out that the smallsize of the community ensures thecommunitywide process will be effec-tive in informing residents about theprogram and providing them the op-portunity to become involved. In re-sponse to these comments, the finalrule requires only a communitywideprocess for applicants with popula-tions under 50,000.

A large number of comments werereceived regarding the specific stan.dards of participation enumerated Inparagraph (c). As a result of thosecomments, four changes have beenmade. First, the standards In



§ 570.303(c)(1)(ii) - and§ 570.303(c)(1)(vi) of the proposedrules have been combined and placedin § 570.303(c)(2). This has been doneto make it clearer that applicants arenot required to establish citizen advi-sory committees, though they maychoose to do so. Second, the segmentsof the population which must be in-volved in the citizen participation pro-cess have been expanded to includethe business community and civicgroups who are concerned about theprogram. These were added in recogni-tion of the important roles businessand civic groups play in, communitydevelopment. Third, "substantial" rep-resentation of low- and moderate-income citizens and members of mi-nority groups on citizen advisory com-mittees the applicant chooses to estab-lish or recognize has been substitutedfor "adequate" representation of suchpersons to emphasize the importanceof close coordination between the ap-plicant and the intended primarybeneficiaries of the program. Finally,§ 570.303(c)(1)(iii) of the proposedrules has been revised in the final rule(§ 570.303(c)(3)) to state that the appli-cant shall make reasonable efforts toensure continuity of involvement bycitizens or citizen organizationsthroughout all stages of the program.The proposed rule said there shall becontinuity of participation by specificcitizen representatives. This changewas made because it is not our intentto encourage applicants to treat cer-tain citizens preferentially, which isthe interpretation several commentersplaced on the previous language.Rather, it is out intent to foster thehigh quality of citizen involvementwhich can only occur when the samecitizens or citizen organizationsremain involved in the processthroughout all stages of the program,from initial planning through assess-ment of performance.

§ 570.303(d)-SCOPE OF PARTICIPATION

A number of local government offi-cials objected to the requirement inthe second sentence of this paragraphthat citizens must be involved in thedevelopment of the citizen participa-tion plans. Some objected becausethey felt it was a contradiction interms to say that citizens should be in-volved in planning a process to involvecitizens. Others objected on thegrounds that the requirement impliesthat communities have to start allover again in developing a citizen par-ticipation process,- thereby ignoringprocesses developed locally over thelast three years. We disagree withthese conclusions. While some entitle-ment communities do not presentlyhave written citizen participationplans, allhave existing citizen partici-pation mechanisms of one type or an-other. These can be used to involve

citizens in developing a written plan.With regard to the other objection, nocommunity should have to start allover again In developing a citizen par-ticipation process; while most commu-nities will have to modify their exist-ing processes by some degree, theseregulations provide wide latitude withregard to the form of the citizen par-ticipation process and, therefore,should accommodate existing forms ofcitizen involvement.

Several commenters requested clari-fication as to what Is meant by citizeninvolvement in program Implementa-tion. In response, subparagraph (2)has been revised to state that, at aminimum, this includes involvement ofcitizens in an advisory role in policydecisions regarding program imple-mentation. An example is citizenadvice on the degree of subsidy to beprovided in connection with rehabilita-tion loans to families in differentincome ranges. Day-to-day operationaldecisions are not included in the cate-gory of policy decisions. This subpara-graph also suggests other roles citizensmay play in program Implementation.

Subparagraph (3), which has beenrenamed "Assessment of perfor-mance," has been revised to moreclosely reflect new statutory intent. Anew provision has been added regard-ing the handling of citizen commentson the applicant's community develop-ment performance. The provisionstates that the applicant shall includein its annual performance reportcopies of comments submitted by citi-zens regarding the applicant's commu-nity development performance, the ap-plicant's assessment of such com-ments, and a summary of any actionstaken in response to the comments re-ceived. Submission of the citizen com-ments are required by the statute.Submission of the other two Items areneeded to assist HUD In evaluatingthe citizen comments as 15art of theoverall assessment of the applicant'sperformance. Where appropriate, thisadditional inforrhation in the annualperformance report will trigger moredetailed monitoring of the applicant'sperformance.

§ s50.0o(f)-cONsmERATIoN OFOBJECTIONS TO APPLICATIONS

The material in this paragraph wascontained in paragraph 570.309(b) ofthe proposed regulations. It has beenmoved because it deals with an impor-tant element of citizen participation.One minor change has been made. Inorder to better ensure that citizen ob-jections will be considered during theapplication review period, HUD willnot approve an application until atleast 45 days after its receipt. Previ-ously, the minimum review period was30 days.

§ 57o.3o3(g)--coKPLAINTs

Many comments from local govern-ments expressed concern that the pro-

vision in the proposed regulationsflatly requiring written responses tocitizen complaints within 15 workingdays provided insulflcient time inwhich to prepare responsive answersto complex complaints. We agree moreflexibility Is needed and, therefore,the final rule provides that the appli-cant shall make "every reasonableeffort" to provide written responseswithin 15 working days.

§ slo.3oa(h)-cmcAL AssISTANCE

Numerous local governments object-ed to the proposed technical assistanceprovisions. They objected to losingcontrol over determining the amountof money to be spent on technical as-sistance, the persons to provide the as-sistance, and the groups to receive it.On the other hand, public interestgroups strongly supported the techni-cal assistance provisions. After carefulconsideration- of all comments, therule was revised to provide that thelevel and type of assistance shall bedetermined by the applicant. It wasalso revised to provide that technicalasistance "should" be provided byspecialists jointly selected by the ap-plicant and the organizations andgroups assisted. Such joint selection isnot mandatory.

§670.303(i)-ADEQUA2T INFORMATION

A number of public interest groupsrecommended that applicants be re-quired to publish line item reports ofplanned activities 60 days prior tofinal public hearings on the applica-tion. While this proposal was notadopted, new subparagraph (4) hasbeen added which requires applicantsto make copies of the proposed appli-cation, as well as copies of the citizenparticipation plan, the approved appli-cation, and the annual performancereport, available at locations conve-niently located for persons affected bythe program and accessible to thehandicapped.

Many commenters objected to theprovision in the proposed rule thatcopies of a wide range of program re-

,cords and information be put on dis-play in one or more locations reason-ably accessible to persons affected bythe program. They were concernedwith the cost involved in putting allthe material on display and keeping itupdated, and they questioned the ad-vantage to be gained. In response, therule has been changed to requirecopies of the documents of most inter-est to citizens (i.e.. the citizen partici-pation plan, the proposed and ap-proved applications, and the annualperformance report) be placed at loca-tions convenient to persons affectedby the program, but that all other doc-uments relevant to the program bemade available for citizen review uponrequest at the applicant's office (e.g.,City Hall) during normal workinghours.


8455


The material in subparagraph (3) onpublic availability of the applicationwas contained in paragraph 570.309(a)of the proposed regulations. It hasbeen moved because of Its relevance tothe citizen participation process. Theprevious requirement for publicationof a notice stating the application hasbeen submitted to the A-95 clearing-house and is available to interestedparties upon request, has been deleted.That notice is no longer needed inlight of the new requirement for apublic hearing prior to action by thelocal governing body authorizing thesubmission of the application to A-95clearinghouses.

Numerous local governments object-ed to the provisions in the proposedregulations on meetings. Manythought it was unreasonable to holdapplicants responsible for assuringcitizen organizations hold public meet-ings. Some questioned the need for'minutes or summaries of meetingsheld to provide information and re-spond to questions about the program.Others were concerned with the ex-pense involved in obtaining the min-utes or summaries. On the other hand,citizen groups favor forums at whichiriformation about the program is pro-vided and where questions can beasked..After considering the full rangeof comments, it was decided to deletethe requirement on meetings and torevise the paragraph on public hear-ings, to provide for responses to citizenproposals and questions at the hear-ings. The provisions in the final ruleon providing adequate information tocitizens, together with the answeringof citizen questions at public hearings,will provide citizens the opportunity tobecome informed about the program.

§ 570.03(j)-PUBLIC HEAPINGS

A number of commenters noted thatthe Act does not require public hear-ings on program progress and perfor-

mance, but only to obtain the views ofcitizens on community developmentand housing needs. While that is true,we believe it Is consistent with the Actand reasonable to require the holding'of public hearings on performance.The Act requires citizens be encour-aged to submit views and proposals,and that they be provided the oppor-tunity to participate in developing theapplication, that they be provided theopportunity to submit comments onthe applicant's performance In orderfor citizens to participate intelligentlyin developing the application, includ-Ing submitting proposals for activities,and to intelligently comment on theapplicant's performance, they must beafforded the opportunity to find outhow well previously approved activi-ties are doing.

Subparagraph (3) on notice ofpublic hearings has been revised in re-sponse to numerous comments from

local governments on the high costthat would be Involved in complyingwith the proposed rule. The final rulerequires publication of the notice inthe nonlegal section of newspapers ofgeneral circulation, including minorityand non-English language newspapersof general circulation where theyexist. While the rule no longer re-quires publication of the notice inneighborhood newspapers serving low-and moderate-income persons, appli-cants are required to make reasonableefforts to provide the notices, in theform of press releases, to those news-papers. The information required tobe placed in the notice has been short-ened to include the date, time, place,and procedures of the hearings, andthe topics to be considered.

§ 570.303(k)-BIL=IGUAL

Many local government officialsquestioned whether the benefit to bederived from translating major pro-gram documents justified the expense.To keep costs down, the final rule pro-vides that "summaries of basic infor-mation" rather than "major docu-ments" be produced for non-Englishspeaking persons. This will still pro-vide non-English speaking citizenswith information about the programand how it affects them, but does notrequire that all regulations, forms, andother major documents be translatedto other languages.

§ 570.303(l)-CONTINGENCY AND LOCALOPTION ACTIVITIES

This paragraph has been expandedto cover citizen participation in the se-lection of local option activities. Whileparagraph (d) on scope of participa-tion already states that citizens shallbe involved in subsequent amendmentsand other changes to the application,it apparently was not clear that "otherchanges" was intended to include theselection of local option activities. Theexpansion of this paragraph now clari-fies that citizens must be involved inselecting local option activities.

§ 570.303(m)-PROGRAM AIX.NDMENTS

This new paragraph has been addedto emphasize that citizen participationis required with respect to programamendments. It provides that whereprior HUD approval of the amend-ment is required, as specified in§ 570.312, public hearings must be heldon the amendment. All other amend-ments, except those involving disasteractivities, also require citizen partici-pation, but the specific nature of theparticipation is left to the discretion ofthe community.

COMM=NY DEVELOPMENT A" HOUSINGPLAN

Comments on the new applicationrequirements were generally favorable

and many commenters, including localofficials as well as public interestgroups, expressed the view that theseprovisions would encourage more ef-fective programing. However, numer-ous local officials expressed concernthat this would greatly increase thepaperwork requirements and res;ult ina boon to consultants. These com-ments were considered carefully andall proposed requirementa reviewed toassure that those retained served apositive purpose. These provisions donot require lengthy statements pre-sented in technical terms. They do re-quire a concise but clear and explicitstatement of the applicant's housingand development strategy that is com-prehensible both to citizens and HUDand that is relevant to the needs ofthe applicant.

The other major -concern about thissection as a whole was about thetiming of implementation, and coordi-nation with the Housing AssistancePlan. The effective date of these re-quirements has accordingly beenchanged to August 1, 1978, whIch isthe date the new three year housingprogram aspect of the Housing Assis-tance Plan requirements will becomeeffective as well. The effect of thischange is the entitlement grant recipi-ents will apply for fiscal year 1978funds on current forms and under cur-rent planning requirements, except asspecifically modified. These localitiesthus, will have sufficient lead time toimplement the new requirements in anorderly fashion, in coordination withthe Housing Assistance Plan, and todevelop meaningful three-year plansin full consultation with citizens. Con-sistent with this, the title of this sec-tion has been changed to "CommunityDevelopment and Housing Plan." andthe linkage between housing and com-munity development is emphasizedthroughout.

The other major issues that wereraised and the actions taken are as fol-lows:

Regarding the summary of commu-nity development and housing needs,many local officials stated that the re-quirement to describe ,the needs of allneighborhoods having significant con-centrations of low- and moderate-income persons was onerous, particu-larly for cities having many suchareas. This requirement has according-ly been deleted.

Various public interest groups con-cerned with the needs of lower-incomepersons recommended that the needsof low-income and moderate-incomepersons be described separately. Thiswas not adopted because there Is nonational pattern of neglect of theneeds of low-income persons in favorof moderate-income persons, and itwas therefore concluded that an addi-tional application requirement was un-warranted. A provision was added that

FEDERAL REGISTER, VOL 43, tO. 41-WENESDAY, MARCH 1, 1978


applicants shall describe any specialneeds of lower-income minority groupmembers in response to a number ofcomments on that point.

With regard to the comprehensivestrategy, there were few specific com-,ments. The changes that have beenmade, and the reasons, are:

The section has been reorganized tostate. specific requirements in a morelogical fashion. It now calls for a com-munitywide component in which theapplicant describes its general develop-ment strategy and priorities for theuse of funds. The neighborhood revi-talization strategy accordingly is limit-ed to projects which have a neighbor-hood focus, namely, plans for Neigh-borhood Strategy Areas, and plans forother neighborhood Improvement ef-forts. The community facilities andpublic improvements strategy hasbeen eliminated since it overlappedthe other requirements; plans for suchfacilities are to be contained in theneighborhood revitalization strategy,where appropriate, or the commun-itywide strategy. -

The housing 'component has beenchanged so that it is a comprehensive.statement of the community's overallhousing strategy, both assisted andnon-assisted. The strategy includes theHousing Assistance Plan. In addition,it includes all citywide efforts to fosterhousing maintenance and improve-ments and increase housing opportuni-ties, including regulatory actions andfair housing actions previously includ-ed under neighborhood revitalization.The plan to mitigate adverse effects ofcommunity development activities onlow- and moderate-income persons has,also been moved here in response tocomments that such effects may resultnot only from neighborhood revitaliza-tion and that this requirement shouldtherefore apply to all programs.

The economic development strategy-is no longer limited to distressed citiessince others may also carry out eco-nomic development activities withblock grbnt funds. A provision hasbeen added to include discussion ofthe nees of identifiable populationgroups experiencing significant unem-ployment or underemployment and todescribe any job training to be offeredsuch persons. Projects which benefitsuch persons are most appropriate inalleviating economic distress andshould be emphasized.

Regarding the three-year activitysummary, a number of local govern-menta objected to the requirement tospecify planned activities and fundinglevels in advance as they felt it wouldbe difficult and limit local flexibilityand ability to respond proniptly to citi-zen requests. These comments wereconsidered carefully and it was con-cluded that these requirements shouldbe retained for the following reasons:

(1) This would provide strong incen-tive for longer range planning*.

(2) It constitutes a more reasonableperiod to evaluate whether programsbenefit low- and moderate-income per-sons;

(3) It will substantially reduce thepaperwork required on an annualbasis.

With regard to responsiveness tocitizens, the three-year plans are re-quired to be developed in consultationwith citizens, and Improved longerrange planning would make citizen in-volvement more meaningful In addi-tion, applicants may amend programswhere necessary.

The map requirements have been re-vised to conform to other changes. Inresponse to numerous comments, theyhave also been changed to indicatethat information need not be dis-played according to census tractboundaries if another method of pre-sentation is available and better de-scribes the community.

ANNUAL CoMnuNmrx DsvzroPxmzPROGRAM

The changes in thissection are toconform to other changes in this sub-part and to the application formsbeing developed. Added requirementsare a general project description andanticipated accomplishments.

HousING ASSISTANCE PLAN

The proposed regulations receivedcomments from local governments,State and areawide planning agencies,public interest groups, and individuals.Three sections of the proposal re-ceived particular comment: completionof the 1976 three year-goal, minimumpercentage goals, and the establish-ment to critleria for determining theadequacy of rehabilitation. Commentsand changes are detailed below.

GENERAL PROVISIONS

Several cities expressed concern thatspatial deconcentration efforts werebeyond their control and Impossible toachieve on a local leveL They furthercommented that providing opportuni-ties for persons displaced as a result ofactivities precipitated by a HAP to re-locate in their immediate neighbor-hoods was contrary to the concept ofspatial deconcentration.

The Department emphasizes thatthe HAP should serve to promote spa-tial deconcentration by providing theopportunity for lower-income house-holds to choose housing outside areasof concentrations of lower-income per-sons but, in no way, to infringe upon ahousehold's choice to remain In theirneighborhood even though it may be alower-income area.

While public interest groups basical-ly were pleased with the provisions re-quiring applicants to continue to ad-dress needs identified in prior HAPsand to take all actions within their

control in order to facilitate the provi-sion of assisted housing, commentsfrom cities indicated their concernthat HUD would not provide sufficientfunds for them to meet all of the goalsestablished in those HAPs and theycite past experience under the section8 program as the basis for their con-cern. Because of the misconceptionssurrounding these sections, we havemade several changes. Responsibilityof the applicant has been clarified byremoving the citation on the use ofpublic mechanisms when the privatesector does not provide assisted hous-ing. This was not intended to requireapplicants to devote all, or a specifiedamount of, their grant to housing as-sistance. Nor was It intended that acommunity would be exempt from theprovisions if insufficient Federal fundswere available. It was intended that acommunity would Initially take thoseactions which would assist the privatesector in providing the housing, in-cluding but not limited to provision ofhousing sites. At the point at whichthe private sector did not respond toavailable resources, it would be expect-ed that the community would thenassume that responsiblity. In order toclarify this intent, we. have followedthe recommendations of several corn-menters that a. list of sample actionsbe included. These actions are refer-enced in this section. and they are setforth In § 570.306(bX3)C11).

Additionally, the section on the sub-mission of HAPs prior to August 1,1978 has been rewritten to furtherdefine the time periods covered by theannual housing action program, toprovide consistency with 24. CFR 891,Review of Applications* for HousingAssistance. Allocation of Housing As-sistance Funds and to clarify thatcommunities are required to addressproportionality by household typeonly. In addition this section clarifiesthat applicants are required also toIdentify general locations for new con-struction and substantial rehabilita-tion.

HousINa AssisrAz PLAN Co.zrxr

HOUSING CONDITIONS

Two comments requested that va-cancy rates be required by unit sizes,and by rent levels. While.applIcantsare asked to evaluate the vacant unitsin their communities in order to assessapplicability of available housing pro-grams to their needs, such evaluationis conducted from the point of View ofgeneral knowledge about the commu-nity. It does not requir-speciflc statis-tical data, cross tabulated by tenure.size, rent level, and condition as wouldbe required if such information wererequested in the presentation on con-ditions. Therefore, these requests havebeen rejected.

FEDERAL REGISTER, VOL 43, NO. 41-WEDRESDAY, MARCH 1, 1978

8457


HOUSING ASSISTANCE NEEDS

Several public interest groups re-quested that both housing assistanceneeds and housing assistance goals bepresented separately for low- (or verylow-) income households. This requesthas not been reflected in the attachedrevisions. First, there has been no evi-dence provided that very low-incomehouseholds have not received housingassistance where It has been providedfor lower-income households. Second,a primary vehicle for the provision ofassisted housing is the section 8 pro-gram which requires that at least 30percent of all families assisted be verylow- (i.e.; low) income. Similarly, thepublic housing program requires thatat least 20 percent of the units in aproject (placed under' ACC after the1974 HCD Act) be occupied by verylow-income families.

A phrase has been added to this sec-tion to indicate that information onprivately induced displacement is to bereported only when the information isavailable. It should be noted, In re-sponse to two comments, that dis-placement figures are estimates andthat the Department is aware that thefigures reported will not necessarilymatch exactly the number of house-holds eventually displaced. We expectonly that the estimates reflect gener-ally available data and that they beconsidered in the planning process.

Several comments suggested thatthe requirement that all communitieswithin the jurisdiction of an'AreawidePlanning Organization (APO) use thesame data be eliminated.

The Department encouragesareawide planning and is supportive ofany process to strengthen It. TheAreawide Housing Opportunities Plan(AHOP) is a vehicle which allows com-munities, through the APO, to planfor their jurisdictions in a coordinatedmanner and to assist HUD in the allo-cation of the Department's housing re-sources.

In endorsement of this approach wehave not eliminated that requirementbut we have revised it to reflect thatonly applicants which are within thejurisdiction of an APO having an ap-proved AHOP will be required to usethe same data. Applicants within thejurisdiction of an APO not having anapproved AHOP are not required, butare encouraged to do so..

All of section 570.306(b)(2)(ii)(A) hasbeen moved forward to section-570.306(b)(i)(A). This section was in-tended to refer to the needs assess-ment of not only households expectedto reside but to the assessment ofhouseholds currently residing as well.The assessment of the number ofhouseholds Expected to Reside (ETR)is to be prepared for metropolitanareas using the methodology set forthin these regulations. Alternative meth-odologies, if approved by HUD, would

be required to be used by all communi-ties within the jurisdiction of the APQreceiving approval of an AHOP.

The general tenor of response to therevised ETR formula was favorablewith only three commenters suggest-ing that an employment factor be in-cluded as an addition to the formula,and one commenter suggesting reten-tion of the current methodology. TheDepartment has decided to adopt theproposed simplified formula on thebasis that estimates derived addressthe broader concept of spatial decon-centration. Several commenters ques-tioned whether the revised formulawould permit a negative estimate ofEIR. It is not possible to separate theeffects of potential outmigration whendealing with applicants on an individ-ual basis; therefore, calculations whichresult in a negative figure are to be re-corded as a zero.

Use of the revised ETR formula willbecome effective August 1, 1978.

Finally, nonmetropolitan applicantsare required to present their best esti-mate of the number of lower-incomehouseholds who reasonably could beexpected to reside in their community.If, based on available data, this esti-mate should reasonably be zero, thenthe applicant is permitted to record itas such.

The commenters asked that the deri-vation of step 5 in the formula be ex-plained. Simply, it is the result of fac-toring the equation used for the ETRformula to solve for x = ETR.

Several commenters suggested thatno adjustment be made-in the ETRformula in order to derive the esti-mate of the number of householdswho could reasonably be expected toreside. It must be understood that theformula, without the adjustment, re-sults not in the number of householdswho reasonably could be expected toreside, but in the number of house-holds which, statistically, shouldreside. Without the adjustment, thereis an assumption that each householdwhich statistically should move, willmove. This is an invalid assumption;therefore, based on information onmovement patterns, the Departmenthas determined that the adjustmentof one-third of the gross estimate isreasonable.

Suggestions to incorporate adjust-ments on a sliding scale were evaluat-ed and rejected on the basis of com-plexity and resultant inequality.

THREE YEAR HOUSING PROGRAM

As indicated in the discussion of gen-eral provisions, we have included inthis section examples of the types ofactions HUD expects an applicant totake to demonstrate that it is exercis-ing all means within its power toachieve the goals in its Housing Assis-tance Plan (HAP) and to address anyspecial housing needs and/or condi-

tions in Its community. Actions are re-quired to be cited whenever past per-formance or anticipated difficultieswarrant, and whenever special needsand/or conditions are cited.

The requirement to Identify generallocations separately by household typehas been removed from the regula-tions in response to numerous com-ments, but most particularly becausegeneral locations typically should notbe so small as to be appropriate exclu-sively for one household type only

ANNUAL HOUSING ACTION PROGRAM

Many commenters questioned theInclusion of a requirement for appli-cants to specify the housing assistanceprograms which It did not wish to uti-lize. This requirement was intended tobe a conforming change to revisions to24 CFR 891. Inasmuch as these regula-tions have yet to be published for com-ment, the paragraph has been elimi-nated.

STANDARDS AND CRITERIA FOR APPROVALOF HArS'

The issue that generated the largestvolume of comment was the establish-ment of a minimal goal. Cities con-tended that the percentage was too ex-cessive because HUD would never beable to provide sufficient funds for ap-plicants to meet five percent of needper year. Public interest groups con-tended that the percentage was toolow and should be increased. Othersproposed elimination of a percentageto be replaced with narrative descrip-tions of the relationship of goals toneeds and an emphasis on monitoring.Concern was also expressed that relat-ing the percentage to a 20 year timeframe was too restrictive and did notallow for changes in an applicant'sneeds.

The Department has decided toretain a percentage relationship be-tween needs and goals but we havemodified It to reflect goals whichwould meet at least 15 percent of needduring each three year period and notnecessarily 5 percent each year. Also,it should be noted that the goals arerelated to the total need, and not tothe need for rental units, or new con-struction units, alone.

Because the percentage relationshiphas been retained unless an applicantcan demonstrate that a goal of 15 per-cent over three years is infeasible, theparagraph on realistic goals has beenremoved to eliminate redundancy,

The final Issue to elicit substantialcomment was the section on adequacyof rehabilitation. Response to thisissue was received from all categoriesof commenters and was unanimous Inrequesting the elimination of localcodes as a criteria of satisfactory com-pletion of rehabilitation. Given thecomments received, particularly thoseciting probable prohibitive rehabilita-

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1,' 1978

8458


tion costs because of stringent codes,the Department has accepted the rec-ommendations and has chosen to useonly Secti6n 8 Existing Housing Qual-ity Standards as a criteria.

Finally, § 570.306(c)(2)(i) was consid-ered to be repetitive and was eliminat-ed.

CERTIFICATIONS

Section 570.307(k) adds a certifica-tion which provides that buildings and

-facilities, other than privately ownedresidential structures, be accessible totie handicapped.

PUBLIC AVAILABILITY OF AND OBJECONSTO APPLICATIONS

In response to comments, the rulespreviously contained in § 570.309 havebeen transferred to the section on citi-zen participation, and this section hasnow been reserved.

HUD REVIEW AND APPROVAL OF -

APPLICATIONS

The following changes have beenmade: § 570.311(a)(1)(ii) has been re-vised to read that all required compo-nent parts of the application are sub-mitted and properly completed. Sec-tion 570.31(c)2)Civ) has been changedto include members of minoritygroups.

AMENDMENTS

There was a considerable amount ofcomment that the currently effectiveten percent threshold for requiringsubmission of Community Develop-ment Program amendments to HUDshould be retained, and this require-ment has accordingly been restored.The rule, however, has been rewrittento improve its clarity;

The Housing Assistance Plan amend-ment requirement has been changedfor conformity to revised regulationsto 24 CFR Part 891 to be issued.

PERFORMANCE REPORT

Comments from local governmentofficials generally favored submissionof the grantee performance reportafter the completion of the applicant'sprogram year. In contrast, commentsfrom civil rights organizations, citizengroups, and legal aid societies general-ly favored submission of the reportprior to submission of the application,so that it c6uld be used in reviewingan applicant's past performance inconjunction with review of the appli-cation. The Department agrees Withthe timing favored by the lattergroups and, therefore, the proposedrule requiring submission of the reportby the end oLthe eighth month in arecipients program year has beenadopted.

OTHER INFORMATION: A Finding'of Inapplicability with respect to Envi-ronmental Impact has been prepared

in accordance with HUD Handbook1390.1. In addition, a Finding of Inap-plicability with respect to InflationImpact has been prepared in accor-dance with Executive Order 11821.Copies of the Findings are availablefor Insptectlon and copying duringbusiness hours In the Office of theRules Docket Clerk, Room 5216. De-partment of Housing and Urban De-velopment. 451 Seventh Street SW.,Washington. D.C. 20410.

Accordingly, 24 CFR Part 570 isamended by revising Subpart D. andby making other technical and con-forming changes to reflect the revi-sions.

I. The table of contents to SubpartD is revised to read as follows:

SubpWt D-EnWkmen GrmtsSee,570.300 Outline of application require-

ments.570.301 Planning considerations.570.302 Program benefit to low- and mod-

erate-income persons.570.303 Citizen participation requirements.570.304 Community development and

housing plan.570.305 Annual community development

program.570.306 Housing assistance program.570.307 Certificates.570.308 Timing of application submission.570309 Public availability of and objec-

tions to application [Reserved].570.310 A-95 clearinghouse review andcomment.570.311 HUD review and approval of appli.

cation.570.312 Amendments.

AuvoRrr: Title L Housing and Commu-nity Development Act of 1974 (42 U.S.C.5301, et seq.); Title I. Housing and Commu-nity Development Act of 1977 (Pub. IL. 95-128); and Sec. 7(d). Department of Housingand Urban Development Act (42 U.S.C.3535(d)).

IL Subpart D is revised to read asfollows:

Subpatt D-Tatif.mnl Grants

§ 570.300 Outline of application require-ments.

This section briefly outlines the re-quirements which must be met by theapplicant when applying for an enti-tlement grant and references othersections containing more detailed In-formation on these requirements.

(a) Planning requirements. Require-ments that the applicant must meet inplanning its community developmentprogram are covered in the followingsections.

(1) Section 570.301 describes generalplanning considerations;

(2) Section 570.302 describes the re-quirement that the applicant's com-munity development program must beplanned and carried out so as to prin-cipally benefit persons having low- andmoderate-income; and

(3) Section 570.303 describes the re-quirement that the applicant must

prepare and implement a written citi-zen participation plan, part of whichprovides for citizen Involvement in theplanning process.

(b) Triennial submission require-mernt Every third year, beginningwith the first application submitted onor after August 1, 1978, the applicantmust submit an application consistingof the following:.

(1) Standard Form 424. Federal As-sistance, prescribed by OMB CircularNo. A-102;

(2) Community Development andHousing Plan as described in § 570.304;

(3) Annual Community DevelopmentProgram as described in § 570.305;

(4) Housing Assistance Plan as de-scribed In § 570.306; and

(5) Certifications as described in§ 570.307.

(c) Annual submision requirementsFor each of the other years in a threeyear period the applicant must submitan application consisting of the follow-Ing:

(1) Standard Form 424:(2) Annual Community Development

Program as described in § 570.305;(3) Annual Housing Action Program

as descrlbid In § 570.306(b)(5); and(4) Certifications as described in

§ 570.307.(d) Other application requirement.

The applicant must also comply withthe following requirements when ap-plying for an entitlement grant:

(1) Requirements on the timing ofapplications as set forth in § 570.308;

(2) Requirements on notifying Stateand areawide clearinghouses of the ap-plicant's intent to apply for Federalassistance, on submitting the applica-tion to clearinghouse for comment,and on taking actions followingclearinghouse reviews, as described in§ 570.310.

§ 570.01 Planning considerations.(a) Comprehensive strategies. The

act requires that applicants have athree-year plan for the use of blockgrant funds which demonstrates acomprehensive strategy for meetingIdentified community developmentand housing needs. The Act providesdescretlon to local governments to de-velop strategies appropriate to localconditions and permits a wide choiceof projects and activities to carry outthose strategies. However, a compre-hensive strategy shall include: (1) asystematic assessment of the locality'scommunity development and housingneeds and the resources available tomeet those needs; (2) determination ofthe applicant's long- and short-ternaobjectives and priorities for the use offunds; (3) development of a three-yearplan of activities designed to meet theneeds and objectives Identified. Thisplan shall provide for undertakinghousing and community developmentactivities in a coordinated and mutual-

FEDERAL REGISTER, VOi 43, NO. 41-WDNESDAY, MARCH 1, 1973

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ly supportive manner consistent withlocal and areawide development plan-ning and national urban growth poll-cies. The requirements for the sum-mary of the three-year plan are statedin § 570.304.

(b) Coordination of programs. It isrecognized that different strategiesmay be appropriate and effective indealing with different local needs andconditions. However, the Act limitscertain activities to areas in whichblock grant assisted physical develop-ment programs are being carried outin a concentrated manner, for exam-ple, public services pursuant to§ 570.201(e). Moreover, certain otherHUD programs are designed to focuson areas of concentrated communitydevelopment activity, for example,Urban Homesteading, and Section 8Substantial Rehabilitation SpecialProcedures pursuant to 24 CFR Part881. Applicants are therefore encour-aged to designate appropriate areas inwhich various programs can be carriedout in a concentrated and coordinatedmanner. For purposes of these regula-tions such areas shall be designated asNeighborhood Strategy Areas as de-fined in paragraph (c).

(c) Neighborhood strategy area. Thisis an area which is selected by the ap-plicant and designated in its three-year Community Development andHousing Plan for a program of concen-trated community development activi-ties. For each Neighborhood StrategyArea the applicant shall include in itsPlan a comprehensive strategy for sta-bilizing and upgrading the area which:

(1) Provides for a combination ofphysical improvements, necessarypublic facilities and services, housingprograms, private investment and citi-zen self-help activities appropriate tothe needs of the area;

(2) Coordinates public and privatedevelopment efforts;

(3) Provides sufficient resources toproduce substantial long-term im-provements in the area within a rea-sonable period of time; in determiningthe size of the area the applicant shalltake into account the severity of itsproblems and the amount of resourcesto be provided so that this require-ment can be met.

(4) Examples of Neighborhood Strat-egy Area programs include: a residen-tial rehabilitation program which pro-vides loans and grants to propertyovmers in a designated' area in whichstreet improvements, playgrounds, andpublic services ar5 also being provided;and a redevelopment program whichincludes systematic demolition of sub-standard structures and assemblage ofsites for new construction in a particu-lar area in conjunction with site im-provements and facilities necessary toattract new development.

(5) In order for a program to qualifyas a Neighborhobd Strategy Area pro-

gram, the activities which an applicantincludes in such program (includingactivities to be funded and implement-ed in more than one action year) shallbe grouped and deemed by the appli-Cant to be a project, as defined in 24CFR § 58.3. The environmental reviewof such project should take into ac-count the relationship between compo-nent activities, and the cumulative en-vironmental effects of activities.

(d) Planning and implementing mul-tiyear projects. (1) An applicant mayallocate funds in an application forthe payment of part of the cost of amultiyear project to be financed in in-crements with funds becoming avail-able in succeeding program years, pro-vided the full scope and estimated costof the total project is described in thefirst application in which grant fundsare allocated for the project. This doesnot preclude use of subsequent yearentitlement funds to complete a pro-ject which was designed as a singleyear project and whose cost exceedsinitial estimates.

(2) The environmental assessment ofa multiyea project, performed under24 CFR Part 58, should encompass theentire multiyear scope of activities.Upon certification that the applicanthas completed the environmental re-quirements for a multiyear project,HUD may Issue its release of funds forthe entire multiyear project. Such re-lease of funds shall be subject to theprovisions of paragraphs (3) and (4) ofthis subsection.

(3) Approval of each increment of amultiyear project Is subject to the gen-eral availability of grant funds, ade-quate performance, and the submis-sion of an acceptable application ineach year in which grant funds are tobe applied toward payment of projectcost. In those instances where the ap-plicant exhausts previously approvedgrant funds before the next incrementis approved, the applicant may obli-gate and spend local funds to continuethe work and be reimbursed withfunds approved for the next incre-ment, provided the locally fundedwork was undertaken in compliancewith the requirements of this Part.

(4) The cdntinued authority of anapplicant to commit Title I funds to amultiyear project or * * * to be reim-bursed for the expenditure of localfunds for costs of such project, aftercompletion of environmental require-ments and HU) release of funds, shallbe subject to the continued relevanceand completeness of the environmen-tal assessment performed. In the eventof any significant or substantialchange in the nature, magnitude orextent of the project, or any signifi-cant or substantial change in the envi-ronment affecting the project, the ap-plicant shall, prior to any further com-mitment of Title I funds to the pro-ject, complete the requirements of 24

CFR Part 58 relating to the updatingof environmental clearances.

(5) The applicant may also obligateand spend local funds prior to approv-al of its application for the purpose ofcompleting activities previously ap.proved and assisted under the urbanrenewal program, the water and sewerfacilities program, the neighborhoodfacilities program, or the open spaceland program, described in §570.1(b)(1), (3), (4), and (6), respectively, Afterapproval of its application, the appli.cant will be reimbursed with fundsprogrammed in the application tocover those costs, provided such local-ly funded work was undertaken incompliance with the requirements ofthis Part. The environmental reviewrequirements of 24 CFR Part 58,except the provisions of Subpart C ofPart 58, must be complied with priorto the incurring of any such costs tobe reimbursed by HUD; however, theprovisions of Subpart C of Part 58must be complied with prior to the re-lease of funds by HUD.

(e) Reimbursement for costs of plan-ning and environmental studies. Priorto approval of Its application, an appli-cant may obligate and spend localfunds for the purpose of environmen-tal assessments required by 24 CFRPart 58, for the planning and capacitybuilding purposes authorized by§ 570.205 (a) and (b), and for the provi-sion of information and resources tocitizens pursuant to § 570,206(b). Afterapproval of Its application, the appli-cant will be reimbursed with fundsprogrammed in the application tocover those costs, provided such local-ly funded activities were undertakenin compliance with the requirementsof this Part.

§ 570.302 Program benefit to low. andmoderate-income persons.

(a) Statutory Provisions. The hous-ing and Community Development Actstates as Its primary objective the de-velopment of viable urban communi-ties, by providing decent housing anda suitable living environment and ex-panding economic opportunities, prin-cipally for persons of low- and moder-ate-income. The Act also requires theapplicant to certify that Its communi.ty development program has been de-veloped so as to give maximum feasi-ble priority to activities which willbenefit low- and moderate-incomefamilies, or aid in the prevention orelimination of slums or blight. It alsopermits approval of activities whichthe applicant certifies and the Secre-tary determines are designed to meetother community development iieedshaving a particular urgency. Consis.tent with the statutory objectives, thefollowing rules govern the expenditureof program funds to insure that theprogram principally benefits low- andmoderate-income persons.


8460

(b) General Requirements.(1) All projects and activities must

either principally benefit low- andmoderate-income persons, or aid intheprevention or elimination of slums andblight, or meet other community de-velopment needs having a particularurgency.

(2) Each annual application forfunds under this subpart must providethat the applicant's program as awhole shall principally benefit low-and moderate-income persons.

(3) An application shall be presumedto principally benefit low- and moder-ate-income persons, absent substantialevidence to the contrary, where notless than 75 percent of the programfunds'to be available during the threeyear period covered by the applicant'scommunity development and housingplan shall be used for projects and ac-tivities which principally benefit low-and moderate-income persons underthe standards in paragraph (d) of thissection. Applications submitted be-tween May 1, 1978 and July 15, 1978,shall be presumed to.principally bene-fit low- and moderate-income personsif at least 75 percent of the programfunds applied for shall be used for pro-jects and activities which meet thestandards in paragraph (d).

(4) The applicant shall maintain inits files the documentation on whichbasis it determines that projects prin-

-cipally benefit low- and moderate-income persons. Such documentationmay include 701 planning studies, wel-fare and unemployement records, localsurveys, and similar generally avail-able information. BUD will monitorthe applicant's performance to ensurethat the applicant's community devel-opment program principally benefitslow- and moderate-income persons.

(5) In designing projects and select-ing areas in which to carry out activi-ties, the applicant shall address theneeds of low- as well as moderate-income persons, given the nature andrelative severity of their needs, andshall include projects suitable to meet-ing those needs.

(c) Review Guidelines.(1) An application which meets the

standard in paragraph (b)(3) will notbe subject to further examination byBEUD prior to funding with respect tobenefit to low- and moderate-incomepersons.

(2) An application which does notmeet the standard in paragraph (b)(3)shall be subject to an examination byHUD prior to -funding to determinewhether the activities proposed areplainly inappropriate to meeting the.needs of the applicant because of thenature and severity of the needs oflow- and' moderate-income persons inrelation to the general needs and con-ditions of the applicant, and whethertaken as a whole, the proposed pro-gram principally benefits low- and


moderate-income persons. In makingthis review, HUD shall consider the in-formation in the applicant's threeyear community development andhousing plan, its annual CommunityDevelopment Program, past expendi-ture patterns in areas having concen-trations of lower income persons, andother generally available data.

(d) Projects which principally bene-fit low- and moerate-income person&A project or activity will be consideredto principally benefit low- and moder-ate-income persons If it is designed tomeet Identified needs of low- and mod-erate-income persons as described inthe applicant's community develop-ment plan and It meets one of the fol-lowing standards:

(1) The project has income eligibilityrequirements that limit the benefits ofthe project to low- and moderate-income persons.

(2) The project does not haveincome eligibility requirements butthe majority of the beneficiaries arelow- and moderate-income persons.The following are examples of projectswhich meet this standard:

(I) A neighborhood strategy areaprogram or a public Improvement ac-tivity which serves an area, delineatedby the applicant, where the majorityof the residents are low- and moder-ate-income persons. Such an area mayconsist of a locally defined neighbor-

.hood or planning district, one or morecensus tracts, enumeration districts, orparts thereof; it need not be cotetmi-nous with census boundaries.

(ii) A project designed to attract orretain neighborhood commercial facili-ties which provide essential services toresidential areas which have a major-ity of low- and moderate-income resi-dents.

(il) Economic development projectswhich are designed to provide directemployment opportunities for perma-nent jobs, the majority of which willbe for low- and moderate-income per-sons f the persons expected to be em-ployed are defined as low- and moder-ate-income prior to employment; It Isnot necessary that the incomes of per-sons employed by economic develop-ment projects be low or moderateafter the project is completed.

(iv) A senior center which is usedprincipally by persons of low- andmoderate-income.

(3) Removal of architectural barrierspursuant to § 570.201(k); such projectsmay be assumed to principally benefitlow- and moderate-income persons inthe absence of substantial evidence tothe contrary.

(4) A project which must be carriedout prior to or is an integral part of aproject which will principally benefitlow- and moderate-income persons. Anexample is the extension of water andsewer lines to permit construction oflow-rent housing. The cost of such

projects must not be unreasonable inrelation to the low- and moderate-income benefits to be provided. Thehousing or other facilities on whichbasis the project is justified must beincluded in the applicant's communitydevelopment plan and there must beevidence acceptable to BUD that con-struction of the housing or other fa-cilities will in fact be commencedwithin the three year period coveredby the Plan.

(5) A project which serves an areawith less than a majority of low- andmoderate-income persons; where: (I)The applicant has no areas within itsJurisdiction where low- and moderate-income persons constitute a majority,or (ii) the applicant has so few suchareas that it is inappropriate to limitthe grant to projects in those areas;provided that: (A) the project servesareas having the largest proportion oflow- and moderate-income residents inthe locality;, (B) the project is clearlydesigned to meet Identified needs oflower income persons in those areas;and (C) the project benefits such per-sons at least In proportion to theirshare of the population of the areasserved.

(e) Projects which prevent or elimi-nate slums or blight The followingprojects and activities will be consid-ered to prevent or eliminate slums orblight:

(1) A project in an area which is a,slum, or a blighted, deteriorated, ordeteriorating area, as defined by Stateor local law, and in which the appli-cant undertakes a comprehensive pro-gram. as defined in §570.301(c), toremedy the conditions which qualifythe area as an urban renewal or simi-lar area. In such cases the applicantmay undertake any otherwise eligibleactivity necessary to accomplish itsstrategy for upgrading the area. Be-cause State laws vary, HUD will recog-nize those State or local laws whichauthorize public actions for the pur-pose of slum and blight preventionand elimination. It is not necessarythat an area be formally designated anurban renewal or similar area, but evi-dence supporting a local determina-tion that an area meets criteria forslums and blight must be maintainedIn the locality's records.

(2) A project designed to eliminatQdetrimental conditions which are scat-tered or located outside slum or blight-ed areas. Authorized activities are onlythose necessary to eliminate the spe-cific conditions of blight or physicaldecay, by acquisition of blighted struc-tures, demolition, historic preserva-tion, and relocation.

(3) Activities necessary to completeFederally assisted urban renewal pro-Jects which do not principally benefitlow- and moderate-income persons.

W) Projects designed to meet needshaving a particular urgency. These


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are projects which the applicant certi-fies and the Secretary determines aredesigned to, alleviate a serious and Im-mediate threat to; the health or wel-fare of the community which is ofrecent origin where the applicant isunable to finance the projects on itsown, and other sources of funding arenot available. A condition will general-ly be considered to be of recent origirIf it developed or became criticalwithin 18 months preceding the appli-cation for funds.

(g) Determining benefits to low- andmoderate-income person.

(1) In determining the amount ofprogram funds which principally bene-fit low- and moderate-income persons,the costs of administration and plan-ning cited in, q 570.205 may be excludedas they will generally be' assumed to,benefit low- and moderate-Income per-sons in the same proportion as the re-mainder of the grant.

(2) The amount of any programfunds to be applied to the repaymentof urban renewal temporary loans mayalso be excluded.

(3) FUnds budgeted for contingenciesand/or local option activities may also,be excluded; such funds shall be ex-pended n such a manner that the pro-gram will continue to meet the rel-quirements of this section.

(4 If a project or activity meets thedefinition in paragraph (d) of princi-pally benefitting low'- and moderate-income persons, the cost of the project

'or activity may be determined to bene-fit low- and moderate-income persons.This includes projects to, prevent oreliminate slums and blight and pro-Jects designed to meet a need having aparticular urgency where such pro-Jects principally benefit low- and mod-erate-income persons under paragraph(d).

(5) If a prolect is designed to preventor eliminate slums or blight or to meetneeds having a particular urgency anddoes not als'o principally benefit low-and moderate-income persons underthe provisions in paragraph (d), a par-ticular activity (such as a rehabilita-tion loan program with Income limitsYwithin that project may neverthelessbe counted in determining the amountof program funds which benefit low-and moderate-income persons.

(6) In determining whether a pro-posed project will actually benefit low-and moderate-income persons, thenature of the needs identified, the re-lationship of the project to meetingthose needs, and the net effect of thecompleted project shall be considered.Thus, mere location of an activity in alow- or moderate-income area does notconclusively demonstrate that a pro-ject or activity benefits lower incomepersons. A neighborhood revitalizationeffort which creates improved housingand better living environment, princi-pally for low- and moderate-income


persons, would be counted, as such.Where such a program results In achange in the income characteristicsof the area sothat a majority of theultimate beneficiaries are higherincome persons, the program wouldnot be counted as principally benefit-ting low,- and moderate-income per-sons.

(fiI Mitigating adverse effects.Where the program will result indirect or indirect displacement or.other hardships to low- and moderate-income persons, the applicant shalltake appropriate steps to' minimizesuch displacement or hardships. Sec-tion 570.304(br)2Y requires the appli-cant to' include in its community devel-opment plan the actions it will take to'assist low- and moderate-income per-sons to remain in existing, locationswhen they prefer to do so, and to- miti-gate adverse effects on such persons as

.a: result of neighborhood revitalizationactivities.

§ 570303: Citizen. participation require-ments.

(a) GeneraL The applicant shall pro-vide citizens with an adequate oppor-tunity to participate in an advisoryrole in planing, implementing, andassessing the program. In so doing, theapplicant shall als- provide adequateinformation to citizens, hold publichearings to obtain views of citizens,and provide citizens an opportunity tocomment on the applicant's communi-ty development performance. Nothingin these requirements, however, shallbe construed to restrict the responsi-bility and authority of the applicantfor the development of the applicationand the execution of its CommunityDevelopment Program.

(b) Written citizen participationplan. The applicant shall prepare awritten citizen participation plan thatprovides procedures by which each ofthe requirements set forth in the fol-lowing paragraphs will be implement-ed. The prla shall go into effect nolater than August 1, 1978. The provi-sions concerning citizen involvementin implementing and assessing the pro-gram apply to- activities that are on-going as of that date, as well as to allfuture activities. The plan shallremain in effect until all activities as-sisted under this Part are completed,or until it is superseded by a new plan.Upon request by HtD, the plan shallbe submitted to HUD to aid in thehandling of complaints and to facili-tate monitoring and evaluation.

(c) Standar& of participation. Theapplicant shall provide a process ofcitizen participation at the commun-itywide level with regard to the overallapplication and program. Applicantswith populations of 50,000 or more'shall also provide a process of citizenparticipation at the neighborhoodlevel in areas where a significant

amount of activity is proposed or on-going. These processes shall meet thefollowing standards:

(17 All aspects of citizen participa-tion shall be conducted In an openmanner, with freedom of access for allinterested persons;

(2) There shall be involvement oflow-and moderate-Income persons,members of minority groups, residentsof areas where a significant amount ofactivity is proposed or ongoing, the el-derly, the handicapped, the businesucommunity, and civic groups who areconcerned about the program. Wherethe applicant chooses to establish, orhas established, a general commun-Itywide citizen advisory committee,there shall be substantial representa-tion of low- and moderate-income citi-zens and members of minority groups.Similarly, where the applicant choosesto establish or recognize neighborhoodadvisory committees in areas wherelow- and moderate-income persons ormembers of minority groups reside,there shall be substantial representa-tfon of such persons;

(3Y The applicant shall make reagon-able efforts to ensure continuity of In-volvement of citizens or citizen organi-zations throughout all stages of theprogram;

(4Y Citizens shall be provided ade-quate and timely information, so as toenable them to, be meaningfully in-volved in important decisions at var-ious stages of the program,

(5) Citizens, particularly low- andmoderate-income persons and resf-dents of blighted neighborhoods, shallbe encouraged to submit their viewsand proposals regarding the Commu-nity Development Program;

(d7 Scope of participation. The ap-plicant shall provided for the continu-ity of citizen participation throughoutall stages of the program. This In-cludes citizen involvement in the de-velopment' of the citizen participationplan, as well as involvement in the fol-lowing areas:

(17 Apptication deveropment, Citi-zens shall be involved In developmentof the annual application, including:

(1) The three-year community devel-opment plan, including the Identifica-tion of commmunlty development andhousing needs, and the setting of pri-orities;

(ii) The Housing Assistance Plan, in-cluding the annual housing action pro-gram;

(iii) The annual Community Devel-opment Program; and e

(iv) Subsequent amendments andother changes to the above, In accor-dance with § 570.312.

(2) Program implementation. Theroles citizens will play in program im-plementation shall be indicated in thecitizen participation plan. At a mini-mum, this shall include Involvement ofcitizens in an advisory role in policy

FEDERAL REGISTER VOL 43, NO. 41-WEDNESDAY, MARCH ", 197',


decisions regarding prograin imple-mentation. It may also include self-help activities carried out by citizengroups and direct program operationsconducted by neighborhood-based or-ganizations and other eligible nonprof-it entities.

(3) Assessment of performance. Citi-zens and citizen organizations shall begiven the opportunity to assess andsubmit comments on all aspects of theapplicant's community developmentperformance, including the perfor-mance of the applicant's grantees andcontractors. They shall also be giventhe opportunity to assess projects andactivities to determine whether objec-tives are achieved. The methods bywhich such opportunities shall bemade available shall be indicated inthe citizen participation plan.-The ap-plicant shall include in its annual per-formance report: (I) Copies of com-ments submitted by citizens regardingthe applicant's community develop-ment performance; (ii) the applicant'sassessment of such comments; and (IIi)a summary of any actions taKen in re-sponse to the comments received.

(e) Submission of views. and propos-als. The applicant shall provide forand encourage the submission of viewsand proposals regarding the Commu-nity Development Program by citizens,particularly low- and moderate-incomepersons and residents of blightedneighborhoods. This includes submis-sion of such views:

(1) Directly to the applicant duringthe planning period prior to publichearings on the application;

(2) To recognized neighborhood, pro-ject area, and communitywide citizenorganizations;(3) At neighborhood and other meet-ings, if scheduled by the applicantprior to formal public hearings; and

(4) At formal public hearings.The applicant shall provide timely

responses to all proposals submitted toit, including written responses to writ-ten proposals stating the reasons forthe action taken by the applicant onthe proposal. The citizen participationplan shall state the number of dayswithin which responses will be pro-vided. Whenever practicable, re-sponses should be provided prior tothe final hearing on the application.

(f) Consideration of objections to ap-plications. Persons wishing to objectto approval of an application by HUDmay make such objection known tothe appropriate HUiD Area Office.HUD will consider objections madeonly on the following grounds: The ap-plicant's description of needs and ob-jectives is plainly inconsistent withavailable fa~ts and data; or the activi-ties to be undertaken are plainly inap-propriate to meeting the needs and ob-jectives identified by the applicant; Orthe application does not comply withthe requirements of this Part or other

applicable law; or the application pro-poses activities which are otherwise in-eligible under this Part.

Such objections should include bothan identification of the requirementsnot met and, in the case of objectionsmade on the grounds that the descrip-tion of needs and objectives is plainlyinconsistent with significant, generallyavailable facts and data, the data uponwhich the persons rely. AlthoughHUD will consider objections submit-ted at any time, such objectionsshould be submitted within 30 days ofthe publication of the notice that theapplication has been submitted toH0, as described in paragraph (i)(3)below. In order to ensure that objec-tions submitted will be consideredduring the review process, HUD willnot approve an application until atleast 45 days after receipt of an appli-cation.

(g) Complaints. The plan,shall pro-vide for answering complaints in atimely and responsive manner. The ap-plicant shall make every reasonableeffort to provide written responseswithin 15 working days.

(h) Technical assistance. To facili-tate citizen participation, the planshall provide for technical assistance.The level and type of assistance deter-mined appropriate by the applicantshall be provided to: (1) Citizen organi-zations, so that they may adequatelyparticipate in planning, implementing,and assessing the program; and (2)groups of low- and moderate-incomepersons and groups of residents ofblighted neighborhoods which requestassistance in developing proposals andstatements of views.

It may also be directed toward assist-ing citizens in organizing and operat-ing neighborhood and project area or-ganizations and in carrying out Com-munity Development Program activi-ties. Technical assistance should beprovided by specialists Jointly selectedby the applicant and the organizationsand groups to be assisted. It may beprovided either by the applicant dl-rectly or through arrangements withpublic or private entities.

(I) Adequate information. The appli-cant shall provide for full publicaccess to program information and af-firmative efforts to make adequate in-formation available to citizens, espe-cially to those of lovl- and moderate-income and to those residing in lower-income or blighted neighborhoods.

(1) At the time the applicant beginsplanning for the next program year,the following program informationshall be provided to citizens:

(I) The total amount of communitydevelopment block grant funds avail-able to the applicant for communitydevelopment and housing activities, in-cluding planning and administrativeactivities,

(ii) The range of activities that maybe undertaken with these funds and

the kind of activities previouslyfunded in the community,

(Ill) The processes to be followed indrawing up and approving the localapplication and the schedule of meet-ings and hearings,

(iv) The role of citizens in the pro-gram, as provided under this section.

(v) A summary of other Importantprogram requirements.

(2) The applicant shall provide forfull and timely disclosure of its pro-gram records and information consis-tent with applicable State and locallaws regarding personal privacy andobligations of confidentiality. Docu-ments relevant to the program shallbe made available tt the applicant'soffice during normal working hoursfor citizen review upon request (eitherwritten or oral). Such documents in-clude the following.

(I) All mailings and promotional ma-terial.

(iI) Records of hearings,(III) All key documents, including all

prior applications, letters of approval,grant agreements, the citizen partici-pation plan, performance reports, eval-uation reports, other reports requiredby HUD. and the proposed and ap-proved application for the currentyear,

(lv) Copies of the regulations and is-suances governing the program, and

(v) Documents regarding other im-portant program requirements, suchas contracting procedures, environ-mental policies, fair housing and otherequal opportunity requirements, relo-cation provisions, and the A-95 reviewprocess.

(3) When the application is submit-ted to HUD upon completion ofclearinghouse reviews, the applicantshall publish a notice in a newspaperof general circulation stating that theapplication has been submitted and isavailable to interested parties upon re-quest and describing the requirementson citizen objections to applicationscontained in paragraph (f), above.

(4) The applicant shall make copiesof the citizen participation plan, theproposed and approved application.and the annual performance reportavailable at locations conveniently lo-cated for persons affected by the pro-gram and accessible to the handi-capped.

(j) Public hearing. The plan shallprovide for a sufficient number ofhearings to obtain citizen views and torespond to citizen proposals and ques-tions at different stages of the pro-gram. Such hearings shall be held atconvenient times and locations whichpermit broad participation, particular-ly by low- and moderate-income per-sons and by residents of blightedneighborhoods. Hearing arrangementsshould make possible the full partici-pation of handicapped citizens.

(1) Presubmission hearings. The ap-plicant shall hold at least two kinds of


8463


public. hearings prior to the submis-sion of the applicatiom

(I), Tor obtain, views and proposals ofcitizens at the initial stage of applica-tion. development on, community devel-opment and housing needs and prior-ities, and to obtain commentr on theapplicant's community, developmentperformance;

(ii) To obtain views of citizens on theproposed, application prior to submis-sion of the application to' A-95clearinghouses,

(2) Performance hearings. In orderto review program progress and per-formance, the applicant shall hold anadditional public hearing or hearingsthirty to: sixty days prior to the startof planning for the next progranx yean

(3) Notices. In order to give adequatenotice of public hearings:

(I) The applicant shall, 10 days priorto each public hearing, publish anotice in easily readable type in thenonlegal section of newspapers of gen-eral 61rculatior,. including minorityand non-English language newspapersof general, circulation where theyexist. Such notices shall indicate thedate, time, place and procedures of thehearing and topics to be consfdered.The applicant also shall make reason-able efforts to provide the notices, inthe form, of press releases, the neigh-borhood newspapers or periodicalsserving low- and moderate-incomeneighborhoods.

(Ii) The applicant is encouraged totake other actions to widely publicizethe hearings, such as arranging, forpublic service, radio and television an-nouncements.o (kY BilinguaL- Wherever a. significantnumber of low- and moderate-incomepersons and residents of blightedneighborhoods speak and read a pri-mary language other than English,the plan shall provide that all noticesof public hearings and summaries ofbasic Information be produced in suchlanguage or languages and that bilin-gual opportunities shag. be offered atrequired public hearings.

(1) Contingency and locaE option ac-tivities. The plan shall provide that Ifthe applicant sets aside funds in its ap-plication for contingencies and/orlocal option activities, or if it choosesto identify in its application activitiesthat could replace any activities disap-proved by HM during its applicationreview, the citizen participation pro-cess shall he involved in the selectionof such. contingency or local option ac-tivities,

(m) Program amendments. The planshall provide for citizen participationIn any amendments to an approved ap-plication, except those for disaster ac-tivities. If the nature of the amend-ment is such that prior HUD approvalis required, as specified in § 57G.3-.l2,the applicant, shall. hold public hear-ngs on the amendment. If the amend-

ment, does not reqluire prior HUI> ap-proval, the plan shall describe how thecitizen participation process shall beinvolved irt the amendment.

§ 5.304 Community Development andHousing Plan.

An entitlement. application, shall in-clude a. summary of a. Community De-veropment, and Housing Plan. Thisdocument shall be submitted everythird year as part of the annual applif-cation for funds beginning with thefirst: application submitted on or afterAugust 1, 197. It shall summarize thecommunity development and housingneeds of the applicant. Ifs compreherr-sive strategy for meeting those needs-,including its long'- and' short-term ob-jective', and the projects and activitiesplanned for the next three years.

(0 Summary of community develop-ment and housing needs. This shall in-clude the following:

(D A communityprofTte on a form tobe prescribed by HUM, which providesdata regarding populatforr and incomecharacteristics of the community, thecondition of the housing stock, andthe economic condition of the commu-nity as a whole.

(21 A narratfue summary of the, ar-pIicant's community" development andhousing needs, particularly those oflow- and moderate-income householdsand any special needs of identifiablesegments of the total group of lowerincome persons. The narrative shallinclude a brief description of themajor needs for neighborhood revital-Ization, for community facilities andpublic improvements, and for housing.

(b) Comprehensive strategy. The ap-plicant shall describe how it proposesto meet its identified community de-velopment and housing needs, particu-larly those of low- and moderate-income households residing in or ex-pected to reside In the community andany special needs of identifiable seg-ments of the lower income population.The strategy shal include a c6mmun-itywide component which describesthe development strategy of the appli-cant, the major objectives the appli-cant seeks to accomplis, the prioritiesit has established for the use of blockgrant funds, and. the factors It hastaken into account in selecting areasfor treatment and designing programsto meet identified needs. In addition,it shall include the following compo-nent strategies:

(Ii Neighborhoot revitalization Theapplicant shall describe Its strategyfor maintaining and preserving viableneighborhoods and for upgradingneighborhoods affected by blight anddeterioration.

This shall emphasize the actions tobe, taken that will improve conditionsfor low- and moderate-income personsresiding- in or expected, to, reside in thecommunity.

MI) Areas targeted for concentratedaction as Neighborhood StrategyAreas pursuant to '570.301(c) shall beidentified. For each such area the ap-plicant shall describe:(AY The objectives, both long-term

and short-term, to be achieved- quanti.fied whereever possible

(B) The physical, Improvement pra-grams to be carried out with blockgrant, funds, such as code enforce-ment, rehabilitation, acquisition, de-molition, or public improvements.

(C) Related, programs proposed suchas Urban Homesteading and section 8Substantial Rehabilitation SpecialProcedures;

(D) Public Services to be carried outin support of the physical improve-ment programs;(B) An implementation schedule

showing the anticipated timing of ac-tivities and the coordination of blockgrant, funded activities and, other localactions;(P) The anticipated resources, in-

cluding block grant funds, other Fed-eraL. State, or local funds, and privateinvestment;

(0-> The role of any neighborhoodorganizations

(H) How the housing assistancegoals and general locations in theHousing Assistance Plarr. particularlythe rehabilitation goals, support theapplicant's neighborhood revitaliza-tion strategy.

(ii) Other neighborhood improve-ment efforts shall be described. Thisshall include specific actions designedto prevent and eliminate slums andblight where such actions are not car-ried out in; a concentrated manner; Itshall also include actions to provideimproved community facilities andpublic improvements' where they willprincipally benefit persons of low- andmoderate-income. The strategy shalldescribe- the activities to be carriedout, the objectives to be accomplished,the anticipated timing, and the blockgrant and other funds to be provided.(2) Housing. The applicant shall de-

scribe a communitywide strategy toimprove housing conditions and tomeet the housing assistance needsthat have been Identified. The strate-gy shall consist of a Housing Anzis-tance Plan. as described In § 570.306 aswell as the following .

(1) A strategy for any programs to becarried out on a. communitywide basls,such as provision of rehabilitation f1-nancing for low- and moderate-incomepersons or elimination of detrimentalconditions; the strategy shall includethe goals ta be accomplished, a timeta-ble of actions to be taken, and theamount of block grant and otherfunds tobe provided;

(I1) Any regulatory and other actionsproposed to foster housing mainte-nance and improvements. This may In-clude: actions to eliminate rcdlining


8464


with respect to property insurance andthe availability of credit for the pur-

-zhase and rehabilitation of housing;,and actions such as provision of tax in-centives to promote investment In res-toration of deteriorated or abandonedhousing;,

(iii) The applicant's strategy for in-creasing the choice of housing oppor-tunities for low- and moderate-incomepersons, including members of minor-ity groups and female-headed house-holds, including efforts to achieve spa-tial deconcentration of such housingopportunities and actions to affirma-tively further fair housing;

(iv) Any community facilities andimprovements to be provided in fur-therance of the applicant's housingstrategy and to assure accomplishmentof goals for assisted housing; and(v) Where the community develop-

ment program will result in direct orindirect displacement or other hard-ships to low- and moderate-ncomepersons, the strategy shall describethe actions the applicant will take toassist such persons to remain in theirpresent neighborhoods when theyprefer and to mitigate any adverse ef-fects resulting from block grantfunded activities.-(3) Economic development. A de-

scription of the applicant's strategyfor economic develoment is requiredfrom applicants that propose blockgrant funded economic developmentactivities: The strategy shall include:(i) A description of the major needs

for economic development in the local-ity; this shall include discussion of the'needs of identifiable populationgroups experiencing significant unem-plo§ment or underemployment, aswell as general economic needs of theapplicant experiencing a stagnating ordeclining tax base or loss of popula-tion;

(ii) A description of the activitiesproposed to further economic develop-ment and to attract private invest-ment, including the coordination ofblock grant funded activities withother local actions and a timetable forprovision of other Federal and State

- resources;(iii) The number and types of perma-

nent jobs expected to result from eco-nomic development projects, particu-larly jobs for unemployed or underem-ployed population groups and low- andmoderate-income persons and thetypes and extent of any job trainingwhich will be provided to such resi-dents; and

(iv) Evidence of commitments or in-terest by developers of new or expand-ed employment facilities.(c) Three-year project summary. This

shall consist of a tabular summary ofthe projects proposed to be carried outwith block grant funds during thenext three years to implement the ap-plicant's comprehensive strategy,

grouped by location, the anticipatedtiming, the goals to be accomplished.the population benefitting, and the es-timated block grant and other fundsto be provided, and indicating whetherthe project or activity principallybenefits low- and moderate-Incomepersons, aids in the prevention orelimination of slums and blight, ormeets other community developmentneeds having a particular urgency.The requirements of this paragraphshall not apply to:

(1) Hold harmless applicants whoseentitlement ends and who do notapply for small cities comprehensivegrants involving multiyear fundingcommitments pursuant to § 570.423(b)during the same year; and (2) any ap-plicant for a small cities grant whodoes not request a multlyear fundingcommitment.

(d) Maps The plan shall includemaps showing the following informa-tion. The maps shall be on a censustract or enumeration district base, butthe information need not be displayedaccording to the tract or enumerationdistrict boundaries.

(1) The extent and location of low-and moderate-income persons;

(2) The extent and location of mi-nority group residents;

(3) The extent and location of sub-standard and deteriorated housing,

(4) The locations of block grantfunded projects Included In the three-year project summary.

(5) Neighborhood strategy areas, ifany. Maps shall be clearly legible, andall required maps submitted shall beof the same scale and cover the sameareas. The applicant may submit sup-plementary maps of a different scale,at its discretion where this will In-crease clarity. More than one type ofinformation may be combined on onemap if the information is clearly leg-ible when combined.

(e) Interim provisions. Applicationssubmitted prior to August 1, 1978,shall conform to the Community De-velopment Plan Summary requre-ments published in the FxuA L REGzs-TER (41 FR 4134) on January 28, 1976.However, applicants proposing to un-dertake activities whose eligiblityunder the rules In Subpart C dependson the activities being consistent witha strategy for community developmentshall supplement the plan summarywith a brief narrative statement con-taining the information required by§ 570.200(h).

§ 570.305 Annual Community Develop-ment Program.

Each annual application shall con-tain a Community Development Pro-gram describing the projects and ac-tivities to be carried out with programyear funds. Such projects and activi-ties shall be consistent with the previ-ously submitted three-year Communi-

ty Development and Housing Plan, oran amended plan shall be submittedwith the application as required by§ 570.312(a). The Community Develop-ment Program shall consist of the fol-lowing:

(a) Project summary. The followinginformation shall be provided for eachproject and activity to be commencedduring the program year:

(1) The name of the project or activ-ity

(2) A description of the projectwhich states its purpose, the sequenceof activities, duratlori of the project,and the entity responsible for carryingit out;

(3) The location and service area, in-eluding the census tract(s) or enu-meration district(s) of the project, andthe entity responsible for carrying itout;

(4) Whether the project or activityprincipally benefits low- and moder-ate-income persons, aids in the preven-tion of elimination of slums andblight, or meets other communityneeds having a particular urgency,

(5) A description of the activitieswhich comprise each project, and theestimated costs and timing;

(6) The amounts and sources ofother public funds and private invest-ments anticipated to be provided;

(7) The environmental review status;(8) Anticipated accomplishment&(b) Cost summary. This will consist

of a tabular summary, on a form to beprescribed, of proposed block grant ex-penditures in specific categories andlthe anticipated resources available.(c) A map or maps of the applicanV's

Jurisdiction showing the locations ofpropord activities, on a base mapcensus tracts or Enumeration districts,and any designated neighborhoodstrategy areas. The maps shall be con-sistent with the requirements of scaleand legibility In § 570.304(d).

§ 570.306 Housing Assistance Plan.'(a) General Provisions. This section

contains policies, procedures, require-ments and standards governing theHousing Assistance Plan (HAP).

(1) Purpose- The HAP is required aspart of the application for assistanceunder this Part. The HAP serves as ameasure of the conditions of the appli-cant's housing stock and the needs oflower (low and moderate) income per-sons for housing assistance. Further,the HAP serves to establish goals forassistance best suited to meet theneeds of lower Income persons and tofurther the revitalization of the com-munity. including the restoration andrehabilitation of stable neighborhoodsto the maximum extent possible, andthe reclamation of the housing stockwhere feasible through the use of abroad range of techniques for housingrestoration by local government, theprivate sector, or community organiza-


8465


tions, including provisions of a reason-able opportunity for tenants displacedas a result of such activities to relocatein their immediate neighborhood. TheHAP must propose general locationsfor assisted housing which promotegreater choice of housing opportuni-ties and avoid undue concentrations ofassisted persons in areas containing ahigh proportion of lower-income per-sons, and which further fair housingand assure the availability of publicfacilities and services adequate to sup-port housing facilities. In addition, allcommunities are expected to share inproviding expanded housing opportu-nities for lower-income persons and toparticipate in areawide solutions ofhousing problems through promotion.of spatial deconcentration of housingopportunities for lower-income per-sons.

(2) Use. The HAP is not only a re-quirement for assistance under thisPart, but It serves as the means forHUD to distribute assisted housing re-sources to applicants. The HAP offersapplicants a means to implementstrategies to conserve and expand Itshousing stock in order to provide adecent home in a suitable living envi-ronment for all persons, but principal-ly those of lower income. The HAPshould facilitate the reduction of theisolation of income groups within com-munities and geographic areas, affir-matively further fair housing and pro-mote the diversity and vitality ofneighborhoods.

(3) Responsibility of applicant Ap-plicants are responsible for implemen-tation of the housing assistance planIn an expeditious manner. This in-cludes the timely achievement of allgoals for assisted housing and particu-larly those which address the needs offamilies and large families requiringrental assistance. Applicants are ex-pected to take all actions within theircontrol to facilitate the implementa-tion of an approved housing assistanceplan including those actions specifiedin §§ 570.306(b)(3)(ili) and (b)(4)(il), aswell as the development of Section 8housing when notifications of fundingavailability are not responded to byprivate developers.

(4) Period covered by HAP. The HAPshall be submitted and be effective fortime periods as follows:

(i) Housing Assistance Plans submit-ted to HUD after the publication dateof these regulations but prior toAugust 1, 1978 shall be designed tocomplete the requirement that hous-ing assistance provided pursuant tothe three-year goals set forth in theHAP approved during 1976 shall havebeen provided in the same proportionas those goals by household type (el-derly and handicapped, families andnon-elderly individuals, and large fam-ilies). Accordingly, applicants shallsubmit an annual housing action pro-

gram pursuant to § 570.306(b)(4) whichwill propose goals for housing assis-tance to be provided in Federal FiscalYear 1979 which, when combined withall housing assistance provided in FFY1977 and 1978 will result in the provi-sion of housing assistance in the sameproportion as the three year goals, byhousehold type, set forth in the HAPsubmitted in 1976. For the purposes of24 CFR 891, the three-year goal forHAP's submitted prior to August 1,1978 is the three-year goal submittedin the 1976 HAP including any amend-ments thereto. For example, an appli-cant which has provided housing assis-tance prinarily for elderly householdsduring FFY 1977 and 1978 is expectedto establish goals this -year in theannual housing action program forfamilies and large families so that as-sistance provided during FFY 1977,1978 and 1979 will be n the same pro-portion, by household type, as the1976 three-year goal. In addition, theapplicant shall identify gefieral loca-tions for new construction and sub-stantial rehabilitation units or pro-jects. For HAP's submitted prior toAugust 1, 1978,'general locations shallbe applicable to the housing assistancegoals as described above in this para-graph; however, the requirements foridentifying such locations are set forthin § 570.306(b)(3)(ii). Unless there havebeen substantial changes in the hous-ing conditions and housing assistanceneeds, an applicant is required tosubmit only an annual goal and thegeneral locations for proposed newconstruction and substantial rehabili-tation.

(ii) Housing Assistance Plans submit-ted after August 1, 1978 shall be sub-mitted once every three years as de-scribed in § 570.306(b) and shall covera three year period. However, eachannual application shall include anannual housing action program. Al-though some revision and updatingmay be necessary during this periodbecause of the availability of new datasources or significant changes in localconditions or needs, the HAP shall bein effect for three program years. Anew HAP shall be submitted everythird program year thereafter.

(iii) A Hold Harmless Entitlementapplicant submitting a HAP afterAugust 1, 1978, but not proposing toapply for a grant under Subpart F ofthese regulations during its phase outyear, is subject to this section exceptthat the establishment of a three-yearnumerical goal as described in§ 570.306(b)(3Xi) is not applicable.

(5) Relationship to previously ap-proved HAP's. (Effective August 1,1978.) Applicants are not relieved oftheir responsibilities to continue to ad-dress goals established to meet theneeds for assisted housing identified inprior program years. Accordingly, ap-plicants who had approved component

goals designed to address the needs ofa particular tenure type (ovmer orrenter), household type, (elderly andhandicapped, family and non-elderlyindividuals, or large family), or hous-Ing type (existing, substantial rehabili-tation, or new construction), or anycombination of the above, which havenot been substantially met, shall In-clude goals to meet such needs prior toproviding further assistance fortenure, household, or housing typesfor which established goals have'beensubstantially met. For example, an ap-plicant which has Identified a substan-tial need, and established goals forfamilies and large families, but none-theless has met only the goals or asubstantial portion of the goals, estab-lished for elderly households shallmeet the goals established for familiesand large families before providing ad-ditional assistance to elderly house-holds.

(b) Housing Assistance Plan Con-tent. The application shall contain ahousing assistance plan which In-cludes:

(1) Housing Conditions. The appli-cant shall describe the condition ofthe existing housing stock in the com-munity by providing a statistical pro-file by tenure type (owner and renter),which describes housing conditions bynumber of units in standard and insubstandard condition. If a housing re-habilitation program is proposed aspart of the applicant's strategy state-ment as set forth In § 570.304(b), thenumber of units which are suitable forrehabilitation shall be stated. Esti-mates shall be made of vacancy ratesfor non-seasonal available units instandard condition,'using the best esti-mate at the time the application Isprepared, but in no case includingunits to be vacant at a future date.

(2) Housing Assistance Needs. Theapplicant shall describe the housingassistance needs of lower Income per-sons.

The data for such description gener-ally shall be derived from Federalcensus data; except that the applicantmay also utilize other more recentdata generally available from public orprivate sources, including areawide, re-gional, or State planning agencies; pro-vided that the deviations from esti-mates derived from the Federal censusdata or from areawide, regional, orState planning agency assessments areexplained. All applicants which arewithin the jurisdiction of an areawideplanning organization having an ap-proved Areawide Housing OpportunityPlan (AHOP) must use the data pre-sented in the Plan. Applicants whichare within the jurisdiction of anareawide planning organization whichdoes not have an approved AHOPshould use the same census, areawide,or State data unless more recent, gen-erally available data exist for an Indi-vidual applicant.


8466


(i) The applicant shall provide esti-mates of housing assistance needs oflower-income persons currently resid-ing in the community, by tenure typeand byhousehold type (lower-incomehouseholds which are elderly andhandicapped, families and non-elderlyindividuals, and large families), for allhouseholds, including those house-holds to be displaced by public actionand, where information is available, byprivate action during the three yearprogram. Such estimates shall also beprovided for any identifiable segmentof the total group of lower-incomehouseholds in the community.

(ii) The applicant shall assess thehousing assistance needs of lower-income households (by household typefor all households and all minorityhouseholds), who could reasonably beexpected to reside in the community.

(A) (Effective August 1, 1978.) Anapplicant community in a metropoli-tan area shall utilize the followingmethodology to derive the minimumestimate of the number of -lower-income households who could be ex-pected to reside in the applicant com-munity during the three year periodof applicability of the HAP. First, themetropolitan area percentage of lower-income households shall be deter-mined using Section 8 Income Limits.Second, the total number of house-holds in the applicant's jurisdictionshall be determined. Third, the totalnumber of households from step twoshall be multiplied by the percentage,from step one, the product of which isthe total required number of lower-income households. Fourth, thenumber of lower-income householdscurrently residing in the applicant'sjurisdiction shall be determined. Fifth,the number of lower-income house-holds currently residing-from stepfour shall be subtracted from the totalrequired number of lower-incomehouseholds produced in step three, theremainder of which is to be divided byone minus the metropolitan area per-centage of lower-income households,the result being the gross estimate ofthe number of lower-income house-holds expected to reside in the appli-cant community. Sixth, applicantsshall then determine the estimate ofthe number of lower-income house-

" holds who reasonably may be expectedto reside by multiplying the gross esti-mate of the number of lower-incomehouseholds expected to reside by one-

- third. This estimate of the number oflower-income households who reason-ably may be expected to reside shallbe cited in the applicant's assessmentof the overall housing assistance needsof lower-income households. An appli-cant with a gross estimate of thenumber of households expected toreside of Zero as a result of the fifthstep in the above methodology is notrequired to set forth a housing need

for an additional number of lower-income households expected to reside.An applicant obtaining a negativegross estimate as a result of the fifthstep shall record -the gross estimate ofthe number of households expected toreside as a zero.

Step L SASA Y Lower Income HousholdPercentage: 40 percent.

Step.2. City W Total Number of House-holds currently residing 5.000.

Step 3. City W Total Number of House-holds Currently ResidlngXSMSA Lower-Income Household Percentage=Total re-quired number of lower-income households5,OOOx4Oi=2.000.

Step 4. City W Total Lower-IncomeHouseholds Currently Residlng 1,000.

Step 5. (City W Total required number oflower-income households-City W Lower-Income Households Currently Residing)/(I-SMSA Lower-Income HouseholdsPercentage)=Gross Estimate of Lower-Income Households. Expected to Reside:(2,000-l000)/(1-40%)=I.000/60%=1.667.

Step 6. City W gross estimate of thenumber of lower-income households expect-ed to reside/3=the estimate of the numberof lower-income households who reasonablymay be expected to reside 1.667/3=556.

(B) An applicant in a nonmetropol-tan area, for which relevant Federalcensus, data are not available., shallsubmit its best estimate of the numberof lower-income households who rea-sonably could be expected to reside inthe community, based on data general-ly available from Federal, State.areawide, or local sources.

(i) Use of alternative methodologiesfor determining estimates of lower-income households expected to residedeveloped by State or areawide plan-ning organizations; (Effective August1, 1978.) FUD may, at Its option, de-termine that a State or an areawideplanning organization has developedan alternative methodology for one orboth of these elements which evi-dences compliance with the objectivesof this Part and Is a more precisemeans to measure such needs withinthe specific geographic area of Its ju-risdiction. The basis for such determi-nations are set forth in 24 CFR Part891, Subpart E. Having so determined,HUD may, at its option, authorize theuse of such methodology, in lieu of themethodology set forth In§ 570.306(b)(2)(il), by all applicantswithin the Jurisdiction of suchareawide planning organizations.

(A) HUD shall Inform all affectedapplicants, by publicatfon of a Noticein the FraRnr REasra, of thoseState or areawide planning organiza-tions where an alternative methodolo-gy has been approved by HM andwhether such methodology will beused in lieu of the methodology setforth in § 570.306(b)(2)(H).

(B) In determining whether an alter-native methodology developed by aState or an areawide planning organi-

zation is to be used In lieu of a meth-odology set forth in this Part, BUDwill consider whether such alternatemethodology provides the estimates.required to meet the standards of ac-ceptability seb forth In paragraphs (b)and c) of this section and is statisti-cally and mathematiclally sound.

(C) HUD shall monitor the estimatesdeveloped through an approved Stateor areawide planning organization al-ternative methodology. Althoughareawide organizations are encouragedto develop methodologies which areinnovative in scope and suited to thecircumstances of the jurisdiction ofthe areawide planning organizations,HUD may withdraw approval of or re-quire modification of an alternativemethodology which is determined toproduce estimates which are plainlyinconsistent with the objectives of thisPart

(Uv) In addition the applicant shallprovide a narrative statement whichsummarizes any special housing condi-tions In the community and specialhousing needs found to exist In thetotal group of lower-income house-holds in the community. Such sum-mary shall include but need not belimited to, discussion of:

(A) Female heads of households,(B) Individual minority groups;(C) Handicapped persons;(D) Special housing conditions such

as concentrations of mobile homes;and

(E) Special housing needs related toa community's economic base such asmilitary housing, migrant workers.and retirement centers.

(3) Three Year Housing Program.(Effective August 1, 1978 except asprovided for paragraph (i!) in§ 570.306(a)(4Xi).) The applicant shalldescribe a three year housing programfor implementation of its communitydevelopment and housing strategy:

(I) Goals. The program shall specify,by tenure type, household type, andhousing type, a realistic three yeargoal for the number of dwelling unitsor persons to be assisted. The state-ment of the three year goal for assist-ed dwelling units also shall take intoconsideration housing conditions withrespect to the availability of existingunits of standard quality and unitssuitable for rehabilitation and shallmeet the standards set forth in§ 570.306(c)(1).

(i) General Locations. The programshall Identify the general locations of-proposed new construction housingunits or projects, and substantial reha-bilitation units or projects, for theprograms subject to 24 CFR 891 and,to the extent feasible, other assistedhousing programs Identified In thegoals for lower-income persons -onmaps as called for in §570.304(d). Thelocations shall be Identified by censustract (or enumeration districts or geo-

FEDERAL REGISTER, VOL 43, NO. 41-WED?,SDAY, MARCH 1, 1978

8467/

8RULES ANLD REGULATIONS

graphic quadrants in those jurisdic-tions where a census tract includes asubstantial area, such as an entirecommunity). General locations forhousing projects shall contain at leastone site which conforms to the siteand neighborhood standards estab-lished for the appropriate HUD assist-ed housing program. Where an appli-cant proposes assisted housing re-sources in areas of concentration ofminorities or federally assisted hous-ing. general locations outside of suchareas also shall be proposed in orderto ensure the provision of assistedhousing in a balanced manner.

(iii) Actions to be taken. The pro-gram shall describe those actions"which will be necessary for the appli-cant to take to address any specialhousing needs and conditions cited in§ 570.306(b)(2)(iv), as well as any ac-tions determined necessary, on thebasis of findings of past performancereviews pursuant to Subpart 0 ofthese regulations, to achieve the hous-ing assistance goals, and shall setforth a timetable for such actions. Inaddition, applicants anticipating diffi-culty in achieving goals in newly pre-pared HAPs shall set forth actions re-quired to achieve those goals. The ac-tions may include, but are not limitedto: (A) acquisition of sites and provi-sion of site improvements for the de-velopment of assisted housing;, (B)adoption or modification of local or-dinances and land use measures to fa-cilitate the development of assistedhousing including institution of localreferendum actions, where necessary;(C) issuance of appropriate zoningchanges, building permits, utility con-nections and similar administrative re-quirements; (D) formation of a localhousing 'authority or execution of anagreement with a housing authorityhaving powers to provide- assistedhousing within the jurisdiction of theapplicant; (E) removal of local resi-dency preferences for assisted hous-ing; (F) promotional and assistance ac-tivities to encourage developers to ini-tiate assisted housing or to allocate aportion of their planned unsubsidizeddevelopments for assisted housing,and to encourage owners to makeunits available for Section 8 existinghousing programs; and (G) measuresto reduce the cost of housing develop-ment, such as tax abatement, waiverof fees and other -administrative costs.

(4) Annual Housing Action Program.For each program year as part of theannual submission, the applicant shalldescribe a program of actions to carryout each program year increment inorder to achieve the three year hous-ng program. The annual action pro-

gram shall:(I) Specify, by tenure type, house-

hold type, and housing type, a realisticannual goal for the number of dwell-ing units or persons to be assisted, in-

eluding the relative proportion of new,rehabilitated, and existing units bestsuited to the needs of lower-incomepersons indentifled by the applicant;and

(ii) Set forth specific actions, if any,to be undertaken during the programyear to assure the implementation- ofthe three-year housing program in-cluding those actions described inparagraph (b)(3)(l1) of this section.

(c) Standards and criteria for ap-proval of HAPa The following stan-dards and criteria shall apply to thereviews and determinations of accept-ability of housing assistance plans andshall be effective as of the date of pub-lication of these regulations except asotherwise noted:

(1) Goals for assisted housing-()Proportionality. The three year hous-ing assistance goals shall address theneeds of the three household types(elderly and handicapped, families andnon-elderly individuals, and large fam-iies) within each tenure type (ownerand renter) in the same proportion asthe total lower-income housing needsIdentified in the HAP, of those house-hold types, by tenure type. Certain ad-justments to this requirement are per-mitted as follows:

(A) HD may grant an exceptionfrom this requirement when an appli-cant documents special needs arisingfrom displacement of significant num-bers of households of a particular size;natural disasters; meeting the housingrequirements of section 105 (f) and (h)of the U.S. Housing Act of 1949, asamended; accommodating proposalsfor projects of feasible size whichcould not otherwise be developed; orimplementing the goals of a HUD-ap-proved AHROP; or

(B) (Effective August 1, 1978.) Appli-cants required to emphasize a particu-lar household type or types pursuantto § 570.306(a)(5) shall make no down-ward adjustment in the percentagerepresented by such household type,but the percentage represented byother household types may be adjust-ed downward as necessary. For exam-ple, an applicant which has dispropor-tionately met the needs, of. elderlyhouseholds in prior years would not bepermitted to make any downward ad-justment to the percentages represent-ed by family and large family house-holds, but may be required to reducethe percentage represented by elderlyhouseholds to zero.

(I) Tenure types. The types andquantities of housing assistance pro-posed by tenure type (owner andrenter), shall be appropriate to meet-ing indentified needs of both rentersand owners. In this regard, unless acommunity can demonstrate that itcan meet the needs of households ex-pected to reside through assistanceprograms for homeowners, such needsshall be assumed to represent needsfor rental units.

(iii) (Effective August 1, 1978.) Mini-mal goals. The goals must directly ad-dress known needs for housing assis-tance and contain a sufficient numberof units to permit practical and eco-nomically feasible housing develop-ment. For applicants with are withinthe jurisidiction of a HUD-approvedAHOP, HUD will accept the goals In-cluded therein. All other applicantsshall propose a three-year housing as.sistance goal which represents assis-tance for at least 15 percent of thetotal need unles the applicant candemonstrate to the saf1sfaction ofHUD that such a goal would be Infea-sible. The standard that housing assis-tance plans with only minimal housingassistance goals are plainly inappropri-ate recognizes that communities withvery substantial housing assistance

-needs have a responsibility to proposesubstantial housing assistance goalsand that goals should reflect the desir-ability of meeting a significant per.centage of Identified needs at an earlydate.

(iv) Vacancy rates. In establishinggoals for assisted housing, the appli-cant shall consider the vacancy rateestablished pursuant to § 570.300(b)(1)and shall estimate the number of suchvacant units which would be adequateto meet the needs of lower-incomehouseholds.

(A) In those cases where there existsa less than adequate vacancy rate (asdetermined by HUD) in housing unitsresulting in an insufficient number ofvacant, standard, available units of ap-propriate size, cost, and type to meetthe identified housing assistance needsfor rental units for lower-incomehouseholds goals for housing assis-tance shall emphasize a program ofnew construction of rental units forhouseholds of lower-income. For ex-ample, an applicant with a significantnumber of lower-income householdsexpected to reside in the communityand a less than adequate rental vacan-cy rate, would be expected to empha-size a program of new construction ofrental units to address this need. How-ever, this does not preclude the use ofa vehicle such as the Section 8 lxist-ing Housing program to address theneeds of houmeholds currenty residingin the community, provided that theexisting program is used in concert,during the three year program, withnew construction and/or substantialrehabilitation so that the housingmarket will not be further mbalanced.

(B) In thoze caezs where there existsan adequate vacancy rate as deter-mined by HUD in standard housingunits creating a sufficient number ofvacant, available units of appropriatesize, cost, and type to meet the identi.fied housing =itance needs of lower-income persons for rental units, goalsfor housing assistance shall emphasizea program of eisting housing for per-sons of lower-income.


8468


(v) Urban renewal completion. Ap-plicants engaged in the completion ofUrban Renewal projects and having tomeet requirements of Sections 105 ()and (h) of the U.S. Housing Act of1949 as amended, or applicants obli-gated to meet such requirementsunder close-out agreements pursuantto § 570.804 for projects which havebeen settled financially, shall establishgoals large enough to meet such obli-gations.

(vi) Adequacy of rehabilitation. Inorder to 'be included as goals in aHousing Assistance Plan any unitsproposed to be rehabilitated for eitherowners or renters must be units whichare determined by the applicant to besubstandard, and upon completion ofrehabilitation, will meet, at a mini-mum, Section 8 Existing HousingQuality Standards pursuant to 24 CFR§ 882.109, and be occupied by lower-income households. Any units pro-posed for rehabilitation using Federalassistance, shall upon completion meetthe standards of the applicable Feder-al -program where they exceed Section8 Existing Housing Quality Standards.

(vii) (Effective August 1, 1978.) Rela-tionship to previously approved goals.Where an applicant does not providegoals to meet unfulfilled needs In ac-cordance with § 570.306(a)(5), suchhousing assistance goals will be deter-mined to be plainly inappropriate.

(viii) Local actions to implementgoals. An applicant shall make all ef-forts to meet the goals in its threeyear housing program. When actionssuch as acquisition of land, formationof a housing authority or rezoning arenecessary for the development ofhousing, such actions should be ac-complished by the second year of thethree year housing program. HUDshall consider an applicant's past per-formance in providing assisted housingpursuant to the performance stan-dards for implementing housing assis-tance plans set forth in § 570.909 in de-termining whether the housing assis-tance goals are appropriate. In thoseinstances where an applicant's perfor-mance in the past indicates that localactions are required to facilitate deliv-ery of housing resources, but the ap-plicant does not provide that such ac-tions will be undertaken on a timelybasis, the goals will be determined tobe plainly inappropriate.'

(ix) Consistency with areawide hous-ing opportunity plans. A housing as-sistance plan of a community which iswithin the jurisdiction of an areawideplanning organization, shall be consis-tent with the approved AreawideHousing Opportunity Plan preparedby the areawide planning organizationpursuant to 24 CFR Part 891.

(2) General locations. The applicantshall demonstrate by its selection ofgeneral locations that its HAP willpromote greater spatial deconcentra-

tion of housing opportunities forlower-income persons, particularly mi-norities.

§ 570.307 Certifications.The applicant shall submit certifica-

tions each year providing assurancesthat:

(a) it possesses legal authority toapply for the grant, and to execute theproposed program.

(b) Its governing body has dulyadopted or passed as an official act aresolution, motion or similar actionauthorizing the filing of the applica-tion, including all understandings andassurances contained therein, and di-recting and authorizing the personidentified as the official representativeof the applicant to act in connectionwith the application and to providesuch additional information as may berequired.

(c) It has complied with all the re-quirements of OMB Circular No. A-95as modified by this Part and thateither.

(1) Any comments and recommenda-tions made by or through clearing-houses are attached and have beenconsidered prior to submission of theapplication; or

(2) The required procedures havebeen followed and no comments or rec-ommendations have been received.

(d) Prior to submission of Its applica-tion, the applicant has:

(1) Prepared a written citizen par-ticipation plan, which:

(I) Provides an opportunity for citi-zens to participate In the developmentof the application, encourages the sub-mission of views and proposals, par-ticularly by residents of blightedneighborhoods and citizens of low- andmoderate-ncome, provides for timelyresponses to the proposals submitted,and schedules hearing at times and lo-cations which permit broad participa-tion;

(i0 Provides citizens with adequateinformation concerning the amount offunds available for proposed communi-ty development and housing activities,the range of activities that may be un-dertaken, and other Important pro-gram requirements;

(iII) Provides for public hearings toobtain the views of citizens on commu-nity development and housing needs;and

(iv) Provides citizens with an oppor-tunity to submit comments concerningthe community development perfor-mance of the applicant:

(2) Followed this plan in a mannerto achieve full participation of citizensin development of the application. Theapplicant shall also follow this plan toachieve full citizen participation In allother stages of the program.

NoTE.-The above certification on citizenparticipation is effective August 1. 1978. Forapplications submitted to HUD prior to

August 1. 1978. the certification require-ment of § 570.303(eX4) published in the FE-z'AL RsmTn (41 FR 4135) on January 28,1976, shall apply.(e) Its chief executive officer or

other officer of applicant approved byHUD:-(1) Consents to assume the status of

a responsible Federal official underthe National Environmental PolicyAct of 1969 insofar as the provisions ofsuch Act apply to this Part;

(2) Is authorized and consents onbehalf of the applicant and himself toaccept the Jurisdiction of the Federalcourts for the purpose of enforcementof his responsibilities as such. an offi-ciaL

Wf The Community DevelopmentProgram has been developed so as togive maximum feasible priority to ac-tivitles which will benefit low- andmoderate-Income families or aid in theprevention or elimination of slums orblight.

nThe requirement for this certification willnot preclude the Secretary from approvingan application where the applicant certifiefand the Secretary determines, that all orpart of the Community Development Pro-gram activities are designed to meet othercommunity development needs having aparticular urgency as specifically explainedin the application in accordance with§ 570.302(f).]

(g) It will comply with the regula-tions, policies, guidelines and require-nents of OMB Circular No. A-102, Re-vised, and Federal Management Circu-lar 74-4 as they relate to the applica-tion. acceptance, and use of Federalfunds under this ParL

(h) It will administer and enforcethe labor standards requirements setforth in § 570.605 and HUI) regula-tions Issued to implement such re-quirements.(i) It will comply with all require-

ments imposed by HUD concerningspecial requirements of law, programrequirements, and other administra-tive requirements, approved in accor-dance with OMB Circular No. A-102Revised.

(j) It will comply with the provisionsof Executive Order 11296, relating toevaluation of flood hazards and Execu-tive Order 11288 relating to the pre-vention, control and abatement ofwater pollution.

(M) It will require every building orfacility (other than a privately ownedresidential structure) designed, con-structed, or altered with funds pro-vided under this Part to comply withthe "American Standard Specifica-tions for Making Buildings and Facili-ties Accessible to, and Usable by, thePhysically Handicapped," Number A-117.1-R 1971, subject to the exceptionscontained in 41 CFR 101-19.604. Theapplicant will be responsible for con-ducting inspections to insure compli-ance with these specifications by thecontractor.


8469


(1) It will comply with:(1) Title VI of the Civil Rights Act

of 1964 (Pub. L. 88-352), and the regu-lations issued pursuant thereto (24CFR Part 1), which provides-that noperson in the United States shall onthe grounds of race, color, or nationalorigin, be excluded from participationIn, be denied the benefits of, or be oth-erwise subjected to discriminationunder any program or activity forwhich the applicant receives Federalfinancial assistance and will immedi-ately take any measures necessary toeffectuate this assurance. If any realproperty or structure thereon is pro-vided or improved with the aid of Fed-eral financial assistance extended tothe applicant, this assurance shall ob-ligate the applicant, or in the case ofany transfer of such property, anytransferee, for the period duringwhich the real property or structure isused for a purpose for which the Fed-eral financial assistance is extended,or for another purpose involving theprovision of similar services or bene-fits.

(2) Title VIII of the Civil Rights Actof 1968 (Pub. L. 90-284), as amended,administering all programs and activi-ties relating to housing and communi-ty development in a manner to affir-matively further fair housing, and willtake action to affirmatively furtherfair housing in the sale or rental ofhousing, the financing of housing, andthe provision of brokerage services.

(3) Section 109 of the Housing andCommunity Development Act of 1974,and the regulations issued pursuantthereto (24 CFR Part 570.601), whichprovides that no person in the UnitedStates shall, on the grounds of race,color, national origin, or sex, be ex-cluded from participation in, be deniedthe benefits of, or be subjected to dis-crimination under, any program or ac-tivity funded in whole or in part withfunds provided under this Part.

(4) Executive Order 11063 on equalopportunity in housing and nondiscri-mination in the sale or rental of hous-ng built with Federal assistance.

(5) Executive Order 11246, and theregulations issued pursuant thereto(24 CPR Part 130 and 41 CFR Chapter60), and Section 4(b) of the GrantAgreement, which provides that noperson shall be discriminated againston the basis of race, color, religion, sexor national origin in all phases of em-ployment during the performance ofFederal or federally assisted construc-tion contracts. Contractors and sub-contractors on Federal and federallyassisted construction contracts shalltake affirmative action to insure fairtreatment in employment, upgrading,demotion, or transfer; recruitment orrecruitment advertising, layoff or ter-mination, rates of pay or other formsof compensation and selection fortraining and apprenticeship.

(m) It will comply with Section 3 ofthe Housing and Urban DevelopmentAct of 1968, as amended, requiringthat to the greatest extent feasible op-portunities for training and employ-ment be given to lower-income resi-dents of the project area and contractsfor work in connection with the pro-ject be awarded to eligible businessconcerns which are located in, orowned in substantial part by, personsresiding in the area of the project.

(n) It will:(1) To the greatest extent practica-

ble under State law, comply with Sec-tions 301 and 302 of Title III (UniformReal Property Acquisition Policy) ofthe Uniform Relocation 'Assistanceand Real Property Acquisition PoliciesAct of 1970 and will comply with Sec-tions 303 and 304 of Title III, and

DI implementing instructions at 24CFR Part 42; and

(2) Inform affected persons of theirrights and of the acquisition policiesand procedures set forth in the regula-tions at 24 CFR Part 42 and§ 570.602(b).

(0) It will:(1) Comply with Title II (Uniform

Relocation Assistance) of the UniformRelocation Assistance and Real Prop-erty Acquistion Policies Act of 1970and HUD implementing regulations at24 CFR Part 42 and § 570.602(a);

(2) Provide relocation payments andoffer relocation assistance as describedin Section 205 of the Uniform Reloca-tion Assistance Act to all persons dis-place as a result of acquisition of realproperty for an activity assisted underthe Community Development BlockGrant Program. Such payments andassistance shall be provided in a fairand consistent and equitable mannerthat Insures that the relocation pro-cess does not result in different or sep-arate treament of such persons on ac-count of race, color, religion, nationalorigin, sex, or source of income;

(3) Assure that, within a reasonableperiod of time prior to displacement,comparable decent, safe and sanitaryreplacement dwellings will be availableto all displaced families and individ-uals and that the range of choicesavailable to such persons will not varyon account of their race, color, reli-gion, national origin, sex, or source ofincome; and

(4) Inform affected persons of therelocation assistance, policies and pro-cedures set forth in the regulations at24 CPR Part 42 and § 570.602(a).

(p) It will establish safeguards toprohibit employees from using posi-tions for a purpose that is or gives theappearance of being motivated by adesire for private gain for themselvesor others, particularly those withwhom they have family, business, or6ther ties.

(q) It will comply with the provisionsof the Hatch Act which limits the po-litical activity of employees.

(r) It will give HUD and the Comp-troller General through any autho-rized representatives access to and theright to examine all records, books,papers, or documents related to thegrant.

(s) It will insure that the facilitiesunder its ownership, lease or supervi-sion which shall be utilized In the ac-complishment of the program are notlisted on the Environmental Protec-tion Agency's (EPA) list of ViolatingFacilities and that it will notify HUDof the receipt of any communicationfrom the Director of the EPA Officeof Federal Activities indicating that afacility to be used In the project isunder consideration for listing by theEPA.

(t) It will comply with the flood in-surance purchase requirements of Sec-tion 102(a) of the Flood Disaster Pro-tection Act of 1973. Pub. L. 93-234, 87Stat. 975, approved December 31, 1973.Section 103(a) required, on and afterMarch 2, 1974, the purchase of floodinsurance in communities where suchinsurance is available as a conditionfor the receipt of any Federal finan,cial assistance for construction or ac-quisition purposes for use In any area,that has been identified by the Secre-tary of the Department of Housingand Urban Development as an areahaving special flood hazards. Thephrase "Federal financial assistance"includes any form of loan, grant, guar-anty, insurance payment, rebate, sub-sidy, disaster assistance loan or grant,or any other form of direct or IndirectFederal assistance.

(u) It will, in connection with Its per-formance of environmental assess-ments under the National Environ-ment Policy Act of 1969, comply withSection 106 of the National HistoricPreservation Act of 1966 (16 U.S.C.470), Executive Order 11593, and thePreservation of Archeological and His-torical Data Act of 1966 (16 U.S.C.469a-1, et. seq.) by (a) consulting withthe State Historic Preservation Officerto identify properties listed in or eligi-ble for inclusion in the National Regis-ter of Historic Places that are subjectto adverse effects (See 36 CPR Part800.8) by the proposed activity, and (b)complying with all requirements es-tablished by BUD to avoid or mitigateadverse effects upon such propertlej.

§ 570.308 Timing of application submis.sions.

(a) Submission of applications. (1)In order to receive an entitlementgrant under this Part, each applicantis required to submit an application atleast 75 days, but no more than 120days, prior to the end of Its programyear.

(2) An applicant which did not re-ceive an entitlement grant in the pre-vious fiscal year must apply no laterthan April 30.


8470

'RULES AND REGULATIONS

(3) Notwithstanding other provisionsof this section, no application will beaccepted between July 15 and October1, -in any year.

(b) Program year. A program yearshall run for a twelve month period.An applicant may, however, eithershorten or lengthen Its program yearby as much as three calendar months,provided:

(1) It is for the purpose of conform-ing the program year to State or localor fiscal budgeting requirements; and

(2) HUD receives written notice of ashortened program year at least sixmonths prior to the date the programyear would have ended if it had notbeen shortened, or in the case of alengthened program year, at leastthree months prior to the date theprogram year would have ended if ithad not been lengthened. An applicantmay not however, receive-more thanone entitlement grant from a singleFederal fiscal year appropriation.

§ 570.309 Public availability of and objec.tions to application [Reserved]

§ 570.310 A-95 clearinghouse review andcomment..

Applicants must comply with theprocedures set forth in Part I of OMBCircular No. A-95 except as modifiedbelow. In addition to rules governingapplications, these procedures also re-quire that program amendments sub-mitted to HUD in accordance with§ 570.312 shall be submitted to appro-priate clearinghouses for a 30-dayreview and comment period.

(a) Clearinghouse notification. TheA-95 requirement that clearinghousesbe notified of an applicant's intent toapply for Federal assistance will besatisfied by HtJD. Each fiscal yearHUD will advise the appropriate Stateand areawide clearinghouses, with acopy to the applicant, of those com-munities entitled to receive grantsunder this Part. This notification willbe provided at least 60 days prior tothe date by which the applicant mustsubmit the completed application toHUD. Upon receipt-of its copy of theHUD notification to the clearing-houses, the applicant shall make ar-rangements with the clearinghousesregarding early transmittal of infor-mation describing the contents of theapplication. An applicant wishing tosubmit its application to HUD beforeFebruary- 1 of each year shall provideits own notice of intent to file with theappropriate clearinghouses in accor-dance with the usual A-95 procedures.

(b) Clearinghouse re?2iew of applica-tion. Unless the requirement is waivedby a clearinghouse, the applicant shallprovide the clearinghouses a period of45 calendar days to review the com-pleted application and transmit to theapplicant any comments or recommen-dations. Clearinghouses will be of as-

sistance to both the applicant andHUD if their reviews address the ap-plication approval criteria containedin § 570.311(c), as well as the "subjectmatter of comments and recommenda-tions" in Part I, Attachment A ofOMB Circular No. A-95, Item 5. Em-phasis should be placed on consistencyamong State, areawide and local plansand strategies. Compliance with envi-ronmental and civil rights laws shouldalso be emphasized.

(c) Applicant actions after clearing-house review. The applicant shall in-clude with its application to HUD allclearinghouse comments, or when nocomments are received, a statementthat no comments or recommenda-tions have been received from theclearinghouses. Where activities aredetermined by the area wide planningagency to be inconsistent withareawide plans, the applicant shallprovide in the application to HUD anexplanation of the reasons for the In-consistencies.

(d) Application modification duringclearinghouse or HUD review. An ap-plicant which revises its applicationwhile it is under review by a clearing-house or by HUD shall inform theclearinghouses of the revisions and, Ifthe application has been submitted toHUD, the number of days remainingwithin the 75-day review period de-scribed in § 570.311(d), for HUD tocomplete its review of the application.

§ 570.311 HUD review and approval of ap-plication.

(a) Acceptance of application. (1)Upon receipt of an application, theHUD Area Office will accept It forreview, provided that:

(i) It has been received before thedeadline for receipt of applications es-tablished in § 570.308(a);

(i) All of the required componentparts of the application are submittedand are properly completed;

(Ill) The funds requested do notexceed the entitlement amount;

(iv) Any comments and recommen-dations received from clearinghouses,or a statement that no comments werereceived, ari attached to the applica-tion; and

(v) Any additional assurances previ-ously required as a result of monitor-ing, inadequate local performance, oraudit findings, are included.

(2) If the application Is accepted Inaccordance with the preceding para-graph, the date of acceptance of theapplication will be the date of receiptof the application in the HOD fieldoffice, and the applicant will be so no-tified in writing, If the application isnot accepted for review, the applicantwill be so notified In writing, and willbe advised of the specific reasons fornonacceptance.

(b) Scope of review. (1) HUD willnormally base its review upon the ap-

plicant's certifications, statements offacts and data, and other information.The Secretary reserves the right, how-"ever, to consider relevant evidencewhich challenges the certifications,and information submitted by the ap-plicant, and to require additional in-formation or assurances from the ap-plicant as warranted by such evidence.

(2) The review will include, but neednot be limited to, the following mat-ters contained In the application andthe grantee performance report, or de-rived from monitoring:.-

(1) Eligibility of proposed activities;(1) Program benefit to low- and

moderate-income persons in accor-dance with the provisions of § 570.302;

(iii) Housing Assistance Plan confor-mity to the requirements of §570.306;

(iv) Coordination of housing assis-tance and community development ac-tivites;

(v) Consistency of the needs statedin the plan with generally availabledata;

(vi) Appropriateness of proposedplans and programs to meeting the ap-plicant's needs and objectives;

(vii) compliance with previous con-tract conditions or other correctiveand remedial actions required byHUD;

(viii) Experience regarding the effec-tiveness of the proposed activities inmeeting the community developmentneeds In the locality;,

(ix) Applicant's capacity to carry outthe program proposed as evidenced byIts previous performance record; and

(x) Compliance with the require-ments of this Part and other applica-ble laws and regulations.

(c) Criteria for disapp7ovaL TheSecretary will approve the applicationunless:

(1) On the basis of significant factsand data, generally available, and per-taining to community and housingneeds and objectives, the Secretary de-termines that the applicant's descrip-tion of such needs and objectives isplainly inconsistent with such factsand data. The data to be consideredmay be published data accessible toboth the applicant and the Secretary,such as census data, or other dataavailable to both the applicant andthe Secretary, such as recent local.areawide or State comprehensive plan-ning data.

(2) On the basis of the application,the Secretary determines that the ac-tivities to be undertaken are plainlyinappropriate to meeting the needsand objectives Identified by the appli-cant. The following are examples ofsituations in which activities may be

'determined to be "plainly inappropri-ate" to meeting the identified needs ofthe applicant:

(1) Experience over a period of timehas demonstrated that the types of ac-'tivities proposed have not been or are


8471


unlikely to be effective in alleviatingthe conditions they were designed toaffect;

(1i) The applicant has Identifiedareas containing significant concentra-tions of deteriorated housing andblight and does not propose to under-take a concentrated program of activi-ties in any such areas;

(Iii) The proposed program does notprincipally benefit low- and moderate-income persons under the require-ments of § 570.302;

(iv) Proposed activities will have adetrimental effect on low- and moder-ate-income persons or members of mi-nority groups and adequate measuresto mitigate such effects are not pro-posed;

(v) Housing goals, locations, andstrategy do not meet the criteria of§ 570.306(c);

(vi) Actions essential to accomplishhousing assistance goals, includingsupportive community developmentactivities, are not proposed;

(vii) The proposed program does notreflect previous requirements of theSecretary for corrective or remedialactions, or activities proposed havepreviously been the basis of such re-quirements.

(3) The Secretary determines thatthe application does not comply withthe requirements of this Part withspecific regard to the primary pur-poses of principally benefitting per-sons of low- and moderate-income oraiding in the prevention or eliminationof slums or blight, or other applicablelaw, or proposes activities which areineligible under this Part.

(d) Timing. The Secretary willnotify the applicant in writing within75 days, but not less than 45 days, ofthe date of receipt of the application,that the application has been eitherapproved or disapproved. In the eventthe Secretary has not mailed a notifi-cation to the applicant within 75 daysfrom the date of acceptance of a com-pleted application the applicationshall be deemed to be approved. If theapplication is disapproved the appli-cant shall be informed of the specificreasons for disapproval.

(e) Reduction of grant The Secre-tary may approve an application foran amount less than the full entitle-ment for the following reasons:

(1) Activities are not eligible underSubpart C and funds are not repro-grammed to eligible activities withinthe 75-day review period;

(2) Activities do not meet other pro-gram requirements, such as benefits tolow- and moderate-income persons de-scribed in § 570.302; or

(3) The recipient's performance doesnot meet the standards prescribed in§ 570.909 and a reduction is appropri-ate pursuant to § 570.911.

f) Conditional approval. The Secre-tary may make a conditional approval,

In which case the full entitlementamount will be approved but the obli-gation and utilization of funds for af-fected activities will be restricted. Con-ditional approvals may be madewhere:

(1) Local environmental reviewsunder § 570.603 have not yet been com-pleted;

(2) The requirements of § 570.607 re-garding the provision of public ser-vices and flood or drainage facilitieshave not yet been satisfied; or

(3) There is substantial evidencethat there has been, or there will be, alack of substantial progress, noncon-formance, noncompliance, or a lack ofcontinuing capacity, as described in§ 570.909. In such case, the reason forthe conditional approval and the ac-tions necessary to remove the condi-tion shall be specified. Failure to satis-fy the condition may result in a reduc-tion in the annual grant amounts pur-suant to §§ 570.910(bX10) or 570.911.

§ 570.312 Amendments.(a) Community Development Pro-

gram amendments. A recipient shallsubmit an amended application to theHUD Area Office when:

(1) The recipient proposes to usemore than 10 percent of the entitle-ment amount approved for the affect-ed program year to undertake one ormore new activities, other than localopfion activities pursuant to § 570.600and disaster activities pursuant to 24CFR § 58.6.

(2) The recipient proposes to alterthe stated -purpose, location, or classof beneficiaries of previously approvedactivities whose cost exceeds 10 per-cent of the entitlement amount ap-proved for the affected program year.. (3) The combination of proposednew activities (other than local optionactivities and disaster activities) andchanges in the purpose, location, orclass of beneficiaries of previously ap-proved activities involves more than 10percent of the entitlement amount ap-proved for the affected program year.

(4) The cumulative effect of anumber of smaller changes involvingnew activities (other than local optionactivities and disaster activities) orchanges in the purpose, location, orclass of beneficiaries of approved ac-tivities exceeds 10 percent of the enti-tlement amount approved for the af-fected program year. In such in-stances, the recipient shall include inits request for amendment documenta-tion describing the smaller changespreviously made, as well as those beingproposed. After the amendment is ap-proved by HUD, the accrual of smallerchanges begins again.

(5) The recipient proposes to reducethe amount of funds previously ap-proved for completion of urban renew-al projects.

When the recipient proposes to under-take activities which are not consis-

tent with the three-year project sum-mary included In Its community devel-opment plan, It shall submit anamended community developmentplan zummary to HUD at the sametime the proposed program amend-ment Is submitted.

(b) Housing Assistance Plan Amend-ments, The recipient shall requestprior HUD approval of Housing A.is-tance Plan amendments when any ofthe following conditions exist:

(1) The recipient proposes a reduc-tion of any goal for housing assistancepursuant to § 570.306(b)(3)(i) or§ 570.306(b)(4)(1);

(2) The recipient proposes the inclu-sion of a goal by household type orhousing type, not previously specifiedpursuant to §570.306 (b)(3)(l) or(b)(4)(i);

(3) The recipient proposes to exceedany three year goal by housing type orhousehold type by the percentagecited in 24 CFR Part 891;

(4) The recipient proposes a revisionof the general locations for assistedhousing established pursuant to§ 570.306(bX3)(ii); or

(5) There is a significant change In,or new data available regarding, theconditions of the housing stock or thehousing needs of lower-income per-sons.

(c) Scope of submission. Only thefollowing documentation must be sub-mitted in support of a request for anamendment to an approved applica-tion:

(1) The elements of the approved ap-plication to be changed, such as theaffected portions of the annual Com-munity Development Program;

(2) The certifications described in§ 570.307; and

(3) Documentation regarding A-95clearinghouse reviews as described In§ 570.310(c).

(d) Response to requested amend-ments. Within 30 days of the date ofreceipt of the proposed amendment,HUD will notify the recipient In writ-ing that the amendment has been ap-proved, disapproved, or conditionallyapproved pursuant to §570.311(f), or,if a final decision on the amendmenthas not as yet been made, the date bywhich the recipient will be notified ofthe final decision. In the event HUDhas not mailed a notification to the re-cipient within that 30-day period, theamendment shall be deemed approved,If the proposed amendment is disap-proved, the recipient shall be Informedof the specific reasons for disapproval.

(3) Other changes. Changes not cov-ered in paragraphs (a) or (b) of thissection including local option and di-saster activities, do not require priorHUD approval, but shall be reportedto HUD as part of the annual perfor-mance report described in § 570.900.

(f) Citizen participation. All amend-ments and other changes to the Com-

FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978 ,

8472


munity Development Program, com-munity development plan and HousingAssistance Plan require citizen partici-pation. Formal public hearings, how-ever, are required only when priorHUD approval of application amend-ments is required. Citizen participa-tion requirements do not apply, how-ever, to-disaster activities.

(g) A-95 review. The recipient shallprovide the State and areawideclearinghouses with 30 days for reviewand comment prior to submission ofan application amendment for priorHUD approval.

(h) Environment. The recipientshall comply with applicable provi-sions of 24 CFR Part 58 respecting allamendments.

IH. Section 570.906 is revised to readas follows:

§ 570.906 Performance report.(a) Submission requirements. (1)

Each entitlement recipient shallsubmit a performance report to H)no later than the end of the eighthmonth of each program year. Thereport shall cover a twelve monthperiod ending with the sixth month' ofthe program year.

(2) A copy of the performance reportshall be submitted to the appropriateA-95 State and areawide clearing-houses for informational purposes atthe time it is submitted to HUD.

(3) The recipient shall make thereport available to citizens at nocharge and shall make public notice ofthe availability of the report at the'time it is submitted.

(4) The requirements for submissionof performance reports by discretion-ary grant recipients are set forth In§ 570.400(h).

(b) Content of report. The reportshall include the following compo-nents in a format to be prescribed:

(1) Progress on planned activities.The report shall describe progress oneach project and activity that was tobe carried out under approved applica-tions since the inception of the appli-cant's block grant program, excludingprojects or activities reported as com-pleted in a previous report. The reportshall list each project and- activity bythe program year in which it was ap-proved and provide cumulative infor-mation on the following,

(I) Amount of funds obligated andexpended;

(ii) Environmental status includingthe date of HUD release of funds;

(iii) The administrative unit havinglead responsibility;

(iv) The steps taken to carry out theproject, such as advertisement forbids, completion of a specified percent-age of construction, etc.

(2) Recipient assessment. The reportshall include the recipient's assess-ment of the effectiveness of the pro-gram of community development ac-

tivities conducted under this Part inmeeting local needs and objectives andnational objectives of the block grantprogram.

(3) Persons benefitting. The reportshall include an analysis of the per-sons actually benefitting from activi-ties carried out under the program.

(4) Housing assistance The appli-cant shall describe progress in carry-ing out the Housing Assistance Plan,including actions taken to further fairhousing.

(5) Citizen participation. The appli-cant shall describe the actions It hastaken to comply with the require-ments of §570.303, and include (i)copies of comments submitted by citi-zens regarding the applicant's commu-nity development performance; (WI) theapplicant's assessment of such com-ments; and (ill) a summary of any ac-tions taken in response to the com-ments received.

(6) Equal opportunity. The applicantshall present evidence of compliancewith the certifications required by9 570.307(l).

IV. Conforming and technicalchanges are made to Part 570 as fol-lows:

§570.400 [Amendedl1. In § 570A00(a), the reference to

"Subparts A, B, C, F, G , H, I, and J" Ischanged to "Subparts A, B, C, J, K,and 0."

2. In. § 570.400(f), the reference to11§ 570.306(eY" Is changed to"§ 570.311(f)."

§ 570.401 [Amendedj3. In § 570.401(c), the reference to

"§ 570.3 03(e) except for (4) and (6)" ischanged to "§ 570.307 except for para-graphs (d) and (f)."

§ 570.403 [Amended]4. In § 570.403(c)(3), the reference to

"§ 570.303(e) (1), (3), (5) If applicable,(7), (8), (11), (12) if applicable, and (13)if applicable" Is changed to "§ 570.307(a), (c), (e) if applicable, (g), (h), (1),(m), (n) if applicable and (o) if applica-ble."

5. In § 570.403(e)(2), the reference to"Subpart G" is changed to "Subpart

§ 570.404 [Amended]6. In § 570.404(b)(3)(A), the reference

to "§ 570.303(b)" Is changed to"§ 570.305."

7. In § 570.404(b)(3)(B), the referenceto "§ 570.303(c)" Is changed to"§ 570.306(b)."

8. In § 570.404, paragraph (b)(3)(c) Isdeleted and reserved.

9. In § 570.404(b)(3)(D), the refer-ence to "§ 570.303(e), except for (e)(4)"is changed to § 570.307, except forparagraph d)."

10. In § 570.404(c)(4)(il)(B), the refer-ence to "§ 570.303(b)" Is changed to"§ 570.305."

11. In § 570A04, paragraph(c)(4)(iI)(D) is deleted and reserved.

12. In § 570.404(c)(4)(ii)(E), the refer-ence to "§ 570.303(e), except for (e)(4)"Is changed to "§ 570.307, except forparagraph (d)."

§ 570.405 [Amended]13. In §570.405, the reference to

"§ 570.303" Is changed to "Subpart D."

§ 570A06 [Amended]14. In § 570A06(c)(5), the reference

to 1§ 570.303(e), except for (4) and (6)"Is changed to "§ 570.307, except forparagraphs (d) and (f)."

§ 570.407 [Amended]15. In § 570.407(e), the reference to

"§ 570.303" is changed to "Subpart D."16. In § 570.407(e)(1), the references

to "§ 570.303(a)" and "§ 570.303(b)" arechanged to "§ 570.304" and "§ 570.305,"respectively.

17. In §570.407(e)(3), the referenceto "§ 570.303(c)" is changed to"1§ 570.306(b)."

18. In § 570A07(e)(4), the referenceto "§ 570.303(e), except for (4) and (6)"Is changed to "§ 570.307, except forparagraphs (d) and Wi)."

§ 570.503 [Amended]19. In §570.503(a), the reference to

"§ 570.306(e)" is changed to"§ 570.311(f)."

§ 570.504 [Amended]20. In §570.504, the reference to

"§ 570.306(e)," Is changed to"§ 570.311(M."

§ 570.600 [Amended]21. In § 570.600, the references to

"§570.303(b)" and "§570.306(e)" arechanged to "§ 570.305" and"§ 570.311(f)," respectively.

§ 570.804 [Amended]22. In § 570.804(b), the references to

"§ 570.305," "9 570.303," "i 570.306,"and "§570.303" are changed to°§ 570.312," "§ 570.300(b) or (c),""§ 570.311," and "§ 570.300(c)," respec-tively.

23. In 9570.804(b)(7)(fl), the refer-ence to "§570.303(c)" is changed to"§ 570.306."

24. In § 570.804(b)(7)(vi), the refer-ence to "Subpart J" is changed to"Subpart 0."

§ 570.900 [Amended]25. In § 570.900, paragraph (d) is de-

leted.

§ 570.907 [Amended]26. In § 570.907(b),

"§ 570.900(d)" is"1 570.303."

27. In § 570.907(c),"§ 570.303(b)" is"§ 570.305."

the reference tochanged to

the reference tochanged to


8473


§ 570.909 [Amended]28. In § 570.909(f)(1), the reference

to "§ 570.305" Is changed to"§ 570.312."

29. In § 570.909(f)(1)(1), the refer-ences to "§ 570.303(e)(6)" and"§ 570.305" are changed to"§ 570.307(f)" and "§ 570.312," respec-tively.

§ 570.910 [Amended]30. In § 570.910(b)(4), the reference

to "§ 570.306(b)(1)" is changed to"§ 570.311(b)(1).".31. In § 570.910(b)(9), the reference

to "§ 570.306(e)(3)" is changed to'§ 570.311(f)(3)."

32. In § 570.910(b)(10), the referenceto "§ 570.306(e)(3)" is changed to"§ 570.311(f)(3)."

33. In §§ 570.403(e)(1), 570.502(a)(2),570.505, 570.506 (a) and (b), 570.507.570.508, 570.512(d), 570.905(b), and570.907(a), the reference to "FederalManagement Circular 74-7" Ischanged to "OMB Circular No. A-102."[Title I, Housing and Community Develop-ment Act of 1974 (42 U.S.C. 5301 et seq.);Title I, Housing and Community Develop-ment Act of 1977 (Pub. L. 95-128); and sec.7(d). Department of Housing and Urban De-velopment Act (42 U.S.C. 3535(d).)]


ROBEAT C. EMaRY, Jr.,Assistant Secretary for Community

Planning and Development.[FR Doc. 78-5180 Filed 2-23-78; 2:24 pm]


8474

WEDNESDAY, MARCH 1, 1978PART V

=

=

- -

DEPARTMENT OFHOUSING


Office of theAssistant Secretary for

Community Planning andDevelopment

COMMUNITYDEVELOPMENT

BLOCK GRANTS

Small Cities Program

II


[4210-011Title 24-Housing and Urban Development

CHAPTER V-OFFICE OF ASSISTANT SECRE-TARY FOR COMMUNITY PLANNING ANDDEVELOPMENT, DEPARTMENT OF HOUSINGAND URBAN DEVELOPMENT

[Docket No. R-78-485]


Subpart F-Small Cities Program

AGENCY: Department of Housingand Urban Development.ACTION: Final rule.

SUMMARY: This rule prescribes themechanisms for distribution by HUDof discretionary community develop-ment block grants as authorized bysection 106 of the Housing and Com-munity Development (HCD) Act of1974. The discretionary program, nowdesignated the Small Cities Program,has been substantially revised to incor-porate both the statutory changes in-cluded in the 1977 Housing and Com-munity Development Act and new ad-ministrative initiatives.

EFFECTIVE DATE: March 1, 1978.FOR FURTHER INFORMATIONCONTACT:

Subpart F: James N. Forsberg, Pro-gram Standards Division, Office ofCommunity Planning and Develop-ment, Department of Housing andUrban Development, Washington,D.C. 20410, 202-755-6306.

SUPPLEMENTARY INFORMATION:On November 18, 1977, the Depart-ment of Housing and Urban Develop-ment published in the FEDERAL REGIS-TER (42 FR 59654) proposed rules forthe Small Cities Program, Subpart Fof 24 CFR Part 570. Regulations gov-erning the discretionary balancesgrants were previously contained in-Subpart E, §§570.400 thru 570.402,which the Department published inthe FEDERAL REGISTER on October 18,1976. Interested persons were givenuntil December 19, 1977, to commenton proposed Subpart F.

Approximately 350 commdnts werereceived concerning the proposed reg-ulations. After full and careful consid-eration of these public comments, wehave made the following changes indeveloping the final rule:

§ 570.420 GENERAL

Section 570.420 contained general in-formation and set out the basic frame-work for the Small Cities Program.

Subsection (b) outlined the overallobjectives for the Small Cities Pro-gram. Several additions to these objec-tives were suggested by the commentsand clarification of the existing objec-tives requested. Although we have de-cided not to expand the list, we have

altered the language to make the ob-jectives clearer and more applicable tosmall communities.

Subsection (c) defined eligible appli-cants. We have changed the wordingto specify that units of governmentparticipating in either an urbancounty or a metropolitan city are noteligible. Some respondents requestedthat hold-harmless communities par-ticipating with an urban cunty onlyfor the purpose of meeting the 200,000population level should still be eligibleto apply for discretionary funds. Wedo not believe, however, that such aresult is legally permissible or adminis-tratively desirable.

Subsection (d) defined the two typesof programs-Comprehensive andSingle Purpose-available to smallcities. For purposes of clarification,this subsection has been abbreviatedto contain only a general statement asto the existence and focus of these twoelements, with the revised definitionsnow contained in § 570.423 and§ 570.427 respectively.

Subsection (e) established a systemfor division of funds between the Com-prehensive and Single Purpose ele-ments based generally on the relativedollar demand within each competingjurisdiction, with an anticipated mini.mum reservation of 30 percent foreach in most cases. The commentswere divided between favoring morefunds for Comprehensive and seekinga higher guarantee for Single Purpose.This section has been completely re-vised to state that '25 to 35 percent ofthe funds will be reserved for theSingle Purpose Program, with the re-mainder reserved for the Comprehen-sive Program, except where thedemand for Comprehensive Grantswould not justify a 65 percent reserva-tion or would justify a reservation ofmore than 75 percent. There is nodemand experience on which to makeallocations to the two programs at thistime. We will examine the demand inprograms this fiscal year for use in al-

'locating funds between programs insubsequent years.

Subsection (f) covered grantamounts for each competition pooland for individual applicants. In re-sponse to comments received, the ref-erence to minimum grants has beenremoved and the language concerningmaximum grants has been changed torefer to general ceilings per apPlicant.Separate ceilings are allowed for mul-tiyear commitments and joint applica-tions. Although the reference to Re-gional and Area Offices has beeneliminated, we intend that the estab-lishment of ceilings be done primarilyby our field offices. Specific sugges-tions, such as basing ceilings on popu-lation levels, will be utilized where wefind them appropriate.

Subsection (g), which covered accessto programs, now permits States, and

counties applying in behalf of otherunits of government, to submit preap.plications for both Comprehensive andSingle Purpose Grants, as suggestedby several commenters.

Subsection (h) concerned themethod for selecting grantees. Severalcommenters felt that the Area Officeswere given too much discretion in re-jecting data submitted. The entire ref-erence to rejection of data has beeneliminated. In addition, the final docu-mentations of HUD decisions on datawill be available to the general public,not just interested applicants.

Subsection (j) placed restrictions oncommunities with previous audit find.ings. A number of comments opposedthis subsection, with some chargingthat we were discriminating againstsmall communities since no similarprovision is applied to entitlement re-cipients. We believe, however, thatthis restriction, with Its waiver provi-sion, is an appropriate and usefulcheck on past participants in HUDprograms. The analogy to the entitle.ment program Is not persuasive sincewe have other measures not applicableto the discretionary program that canbe taken against entitlement granteesto correct such situations. The degreeof seriousness and the timing of suchaudit findings, which were factorsmentioned in the comments, will beconsidered in granting waivers.

Subsection (k)-Program benefit tolow- and moderate-income persons-has been redesignated "ProgramDesign" and has been rewritten tobetter express our position with re-spect to program'benefits.

§ 570.421-APPLIcAT0ios BY STATES ANDCOUNTIES; JOINT APPLICATIONS

This section set out the guidelinesand ground rules for applications byStates and counties in behalf of them-selves or other units of local govern-ment within their jurisdiction and forjoint applications by units of local gov-ernment.

A large number of general commentson this section suggested that thesetypes of applications, particularlyjoint applications, should be givenextra points in the rating system.While we do wish to encourage suchapplications where the local needs andadministrative capacities make themappropriate, we do not want them tobe used simply as a means for scoringmore points. Where these applicationsare indeed appropriate, the potentialincrease in points that are directly re-lated to the design and impact of theproposed program should be a suffi-cient and effective incentive for coop-erative efforts.

Subsection (b) required writtenagreements between the units of gov-ernment paritcipating in an "in behalfof" application. Consistent with onecomment, the paragraph has been


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changed to make clear that both thepreapplicatlon and the applicationmust be pursuant to a written agree-ment. Another comment recommend-ed that such a written agreement berequired between a State and the localgovernment(s) where the proposed ac-$ivities are to be carried out even whenthe State application Is in behalf ofitself. This suggestion was not adopt-ed. State law may permit unilateralState action, and while HUD certainlyencourages cooperation betweenStates and their local governments, wedo not wish to limit existing State au-thority to carry out community devel-opment activities.

As suggested in the comments, Sub-section (c) has been revised to indicatethat the written agreement requiredfor joint applications must cover boththe preapplication and application andmust be submitted with the preappli-cation.

Subsection (d) has been revised inresponse to comments to state explicit-ly that only units of general local gov-ernment included in a State or countyapplication "in their behalf" are pro-hibited from submitting their ownpreapplication.

Subsection (e) proposed that onlydata from those incorporated and un-incorporated areas where communitydevelopment activities were proposedwould be used in the selection criteriafor county, State and joint applica-tions. Several comments raised ques-tions as to what this restriction meantand how it would be administered. Thefinal rule is more explicit as to whatdata will be considered and distin-guishes between county and State ap-plications in behalf of themselves andapplications from these entities inbehalf of units of general local govern-ment or joint applications.

Subsection (e) also provided thatcounty, State, and joint preapplica-tions would be rated separately for theneeds selection factors where their ac-cumulated population covered by thepreapplication was substantially' largerthan the average population of theother applicants against whom theywere competing. A large number ofcomments expressed uncertainty as toexactly what this meant or how itwould be implemented, and some com-ments claimed that a separate rankingwould discourage such applications. Itwas suggested that such a separateranking was unnecessary' since onlydata from the area in which activitieswere proposed would be used for theseselection criteria. This separate rank-ing process is now described in Sec-tions 570.424 and 570.428, and hasbeen limited to preapplications fromcounties and States in behalf of them-selves, State preapplications in behalfof counties, and joint preapplicationsin which a county is participating.

Subsection f) pfovided informationrelated to the submission of a Housing

Assistance Plan (HAP) with county.State or joint applications. In responseto Several comments, the language-ofthis subsection has been revised tobetter express the intended meaning.

Subsection (g) has been clarified toindicate that the restriction on the useof funds applies to units of generallocal government "participating" (for-merly "included") In an urban countyor metropolitan city.

§ 570.422 STATE PARTICIPATION

We are still considering the com-ments received on State Participationas a result of the solicitation containedin the preamble to the proposdd rulewhich was published November 18,1977.

§ 570.423 cOMPREsUvME PROGRAMGENERAL REQUIREMENTS

This section, which included thebasic standards for ComprehensiveGrants, has been substantially reorga-nized and revised.

The definition of a ComprehensiveProgram In subsection (a) has been re-fined. In response to comments, therequirement that the program providefor lower income housing has beeneliminated since It is adequately cov-ered by the Housing Assistance Planmandate.

Subsections (b), (c) and (d) of pro-posed § 570.423, have been eliminated.The portions of these subsections thatare still relevant have been incorporat-ed where appropriate in those subsec-tions dealing with funding decisions.Section 570.423 now also containsthose portions of proposed Sections570.424 and 570.425 that have been re-tained, and § 570.424 et seq. have beenrenumbered accordingly.

Subsection (b) now covers fundingcommitments. In response to numer-ous comments, It states that HUD maymake commitments of up to threeyears for the Comprehensive Program.Thus all applicants seeking a Compre-hensive Grant may request multiyearfunding. The factors we will considerin determining the numberof yearsfor which a commitment will be madeare listed. As required by the 1977 leg-islation, we will give special consider-ation for multiyear funding to thosehold-harmless communities currentlycarrying out a comprehensive programwhich are subject to the phase-out.provision.

The references to subsequent fund-ing that were previously in § 570.424(c)are now in subsection (b). Many com-ments expressed concern about theconditioning of future commitmentsupon the availability of appropri-ations. This condition, however, is leg-islatively mandated. It is intended tolimit HUD's obligations in case suchfunds are not provided by Congress Infuture years. The reference to theannual Community Development Pro-

gram has been retained. Submission ofthis document is necessary to ensurethat the actions of the applicant havebeen and will be consistent with Its ap-proved application.

Proposed § 570.425 set forth specificthreshold requirements to be satisfiedprior to applying for a ComprehensiveGrant or a multiyear commitment.Subsection (a) established the follow-ing four requirements for Comprehen-sive Grant applications: 2,500 popula-tion (walvable), have previously car-ried out a community developmentblock grant program, have demon-strated adequate past performance,and have the capacity to undertakethe proposed program. The first twoof these, particularly the 2,500 figure,generated considerable opposition.After thorough and careful consider-ation, we have eliminated both ofthese thresholds. The latter two re-quirements have been retained in sub-section (c).

The additional threshold require-ment in Section 570.425(b) for mul-tiyear commitments--that applicantsmust have previously carried out acomprehensive community develop-ment block grant program-has alsobeen removed.

Subsection (c) of § 570.425, now apart of § 570.423(c), set out the factorsHUD would consider in evaluatingpast performance. Based on sugges-tions submitted, we will consider ac-tions to facilitate the provision of low-and moderate-income housing, insteadof just actions to facilitate the accom-plishment of HAP goals ((c)(2)(ni)),and we have added development and/or implementation of a section 701housing and land use element to thelist of possible positive actions.

§ 570.424 s I-ON SYSTEM FoRCOMPREEN2SIVE GRANTS

The criteria for scoring and selectingpreapplicatlons for ComprehensiveGrants were contained in proposedSection 570.426.

Several commenters expressed con-fusion over the way need was to be de-fined in terms of substandard housingin Section 570.426 (c) and (d). Otherssuggested that communities be permit-ted to establish their own definition ofsubstandard housing and supply uswith that information. Because of thisconfusion, housing need will now bemeasured In only two ways-by over-crowding, and by lack of plumbing.This information is supplied by theBureau of the Census and is availablefor every potential applicant. It pro-vides a uniform standard for compar-ing housing needs. To permit individ-ual localities to define housing needwould not supply us with standard-ized, consistent information whichwould permit us to make valid com-parisons. Although we recognize thatthe Bureau of Census informwe- to


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be used is perhaps outdated to someextent, it is the only national dataavailable for this purpose.

Numerous comments were receivedconcerning the weighing of the needsfactors in §570.426 (a-d). Most com-munities felt that the double weighingof absolute numbers was unfair tosmaller communities. We have decidedto keep the weighted system becausewe believe it provides an accurate re-flection of relative need among appli;cants. "Proportion of need" Is still in-cluded to recognize those situationswhere a community's needs representa significant portion of its housing orpopulation. The discretionary selec-tion system has used equal weighingof absolute numbers and proportion inthe past, with the results showing anadvantage for the smaller communi-ties. Funds to such communities havefar exceeded their percentage of thepersons residing in cities under 50,000.Greater emphasis on absolute num-bers should correct this.

Many comments were received con-cerning the number of program designcriteria (§ 570.426(e)) that had to beaddressed by a community. Most com-munities felt that they could notdesign a program that addressed sixcriteria. Therefore, we have reducedthe number of criteria that must beaddressed to four, with the points ad-justed to achieve a better indication ofthe quality of programs. Several of thecriteria have been changed for clarifi-cation. Because of comments received,we have also removed the Housing Op-portunity Plan and impact beyond thelocal jurisdiction as separate criteria.Factors which we may consider in as-sessing a program have been includedin § 570.424(e). Although several com-munities felt the design criteria weredeveloped to express a preference byus for certain activities, this is not thecase. The criteria should permit acommunity to define its own needsand develop a program to addressthose needs.

Various comments were made con-cerning the criterion dealing with theImpact of the program on other Feder-al programs or policies. This is one ofthe factors contained in the statuteand must be Included in the system.Suggestions were also made to includeState programs in this factor. This wasrejected because State programs andplans are provided recognition in(e)(l)(vifi).

Subsection (f)-benefit to low- andmoderate-income persons-has beenrevised. There wab concern that thisproposed rule encouraged citywideprojects and provided an additionalfactor that favored the larger commu-nities. Also, in many cases the criteriarequired considerable data that werenot readily available to either the De-partment or applicants. The newmethod of assessing benefit will re-


quire the applicant to provide an esti-mate of the amount, of the requestedfunds that will be used to benefit low-and moderate-Income persons. Appli-cants will then be ranked based on thepercent of funds requested that will beso used. This will require defining thetotal beneficiaries of each element ofthe program and then determininghow many of the beneficiaries are oflow- and moderate-income. This factorwill ensure that those programs pro-viding the greatest benefit to low- andmoderate-income persons receive pref-erence.

Several comments expressed concernover the two performance criteria ofsubsection (g), (previously paragraphh), housing and equal opportunity. Weview the housing criteria as an effec-tive way to reward those communitiesthat are taking positive actions to ad-dress their low- and moderate-incomehousing needs. While a community'sperformance in housing will be evalu-ated before it will be considered for agrant, these criteria should serve as anadditional incentive for communitiesto actively seek out means and re-sources for meeting their housinggoals. Two of the factors§ 570.424(g)(1) (I) and (v)) can be met

by communities that have not receivedhousing assistance recently, but aretaking steps to provide fair housingwithin their communities.

Many communities expressed con-cern over the equal opportunity crite-rion because they did not have minor-ities in their community and becauseof the nebulous nature of the standardthat would be used to award points.The wording has been changed in(g)(2) to establish a measurable stan-dard that can be used to make the de-termination. Points may be awardedbased on past contracting of the appli-cant with minority owned, controlled,or managed businesses, =nd based onthe employment of minorities by theapplicant. We believe, in view of ourequal opportunity objectives, it is veryimportant to reward those communi-ties who have provided opportunitiesfor minorities.

A large number of comments sug-gested that points be awarded to hold-harmless phase out communities.Others recommended that such com-munities be guaranteed fundihg with-out going through the rating process ifthey could demonstrate continuingneed, with a Letter of Intent submit-ted in lieu of a preapplication. Whilewe strongly believe that all applicants,including hold-harmless communities,should be awarded grants based oncompetition, we recognize the legiti-mate concerns of those communitieswhich are experiencing a phase-out oftheir assured source of funding. Topromote continuity in local programs,subsection (i) now provides 25 pointsfor those communities currently carry-

Ing out a comprehensive communitydevelopment program and which aresubject to the phase-out provisions.

Subsection (J) has been amended toinclude authority for the field officesto Invite backup applications,

Concern was expressed that thegrouping process used to determineactual points in § 570.426 was too com-'plex and confusing. We also feel thatthe system might contain some inequi-tie in providing a point spread far inexcess of the actual difference be-tween applicants. Therefore, the con-cept of grouping and assigning pointsby groupings has been eliminated. Inits place, we will use a system wherebypoints are awarded based on each ap-plicant's comparison with the highestrated applicant for each factor.

§'670.425 PREAPPLICATIONS FORCOMPREENSIVE 0 nrrrST

This section, designated § 570.427 inthe proposed regulations, describeswhat must be included in preapplcations for Comprehensive Grants. Sev-eral commenters suggested eliminationof the preapplication for hold-harm-less communities and use of the Letterof Intent In lieu of the preapplication.The law specifies certain factors thatmust be considered in selecting amonggrantees, and only by rating all gran-tees against the criteria can the De-partment determine which applicantsmost effectively address the criteria

-and should be invited to proceed witha full application. Both Houses of Con-gress in their Committee Reports,cited studies indicating that the hold.harmless grants have a very low corre-lation with communities' developmentneeds. For these reasons, we are re-quiring the hold-harmless communi-ties to submit preapplications.

Subsection (a) has been changed torefer to OMB Circular A-102 ratherthan Federal Manaiement Circular74-7 to reflect the current designationfor the document.

Paragraph (a)(2)(iv) has been addedto ieflect the revised method df assess-ing benefit under § 570.424(f). Appli-cants will have to specify the totalnumber of persons benefitting fromeach component of the program andthe number of low- and moderate-income persons benefitting.

Several comments suggested that§ 570.426(b) (ii) and (v) were overlap-ping requirements. Both, however,have been retained in subsection (a).Paragraph (iI) requires only the infor-mation pertaining to the ProgramFactor (§ 570.424(e)), whereas para-graph (v) requests information fromthose applicants addressing the selec-tion criteria contained in § 570.424 (q)and (h).

Most of the comments on proposedSection 570.426 dealt with subsection(d), Program Benefit to low- and mod-erate-income persons. Many felt that



this requirement did not give full rec-ognition to the many objectives of theAct, it did not take into account thecharacter of smaller cities where muchof the low- and moderate-income pop-ulation is not concentrated, and wouldnot permit applicants to design a pro-gram to address their most criticalneeds. Others suggested that the "ex-ception" category be expanded to per-haps 30 percent.

In view of the changes that havebeen made in §570.424(e), ProgramDesign Criteria, which relate the crite-ria to the impact of the program onilow- and moderate-income persons,and the revised method used to mea-sure benefit under § 570.424(f), whichwill look at the percent of dollars acommunity requests which will benefitlow- and moderate-income persons, therequirements contained in § 570.426(d)have been removed from the SmallCities regulations. Thus, even thoughwe have removed the strict rule thatno more than 25 percent of the fundsbe used for activities which do notbenefit low- and moderate-income per-sons, the selection system is designedto select those applicants that meetthe needs of low- and moderate-income persons most adequately andpropose to expend the greatest propor-tion of the funds requested on low-and moderate-income persons. In addi-tion, § 570.420(k) now contains thegeneral mandate that each proposedprogram must principally benefit low-and moderate-income persons.

§ 570.426 APPLCATIONS FORCOMPREHENSIVE GRANTS

Most comments on this Section, for-merly § 570.428, related to the CitizenParticipation requirements of the enti-tlement program which were incorpo-rated by reference for the Small CitiesComprehensive Program.. These Citi-zen Participation requirements arebeing revised in the final entitlementregulations to permit more flexibilityfor communities. We believe it is ap-propriate to apply the same CitizenParticipation requirements to Compre-hensive applicants as to entitlementapplicants, given the intended similar-ity in the nature and scope of the twoprograms. The regulations do permit

- the cost of citizen participation to beincluded as an eligible administrativecost for reimbursement if the full ap-plication is approved.

Other commenters felt that it wasalso not appropriate to apply theentire set of application requirementsof the entitlement program to theSmall Cities Comprehensive Program,

-and that the time permitted betweeninvitation of a full application and itssubmission would be inadequate inview of the application requirements.As stated previously, the two programsare similar in nature and, accordingly,the same application requirements

should apply. Additionally, since manyof the Comprehensive Grant recipi-ents will be hold-harmless communi-ties, the use of the same applicationrequirements will permit these appli-cants to use the same forms for bothfunding mechanisms. With regard tothe time constraints, applicants forComprehensive Grants will have theperiod prior to the preapplication. inaddition to the period between thesubmission of the preapplication andthe full application, to fully developthe Information required with the fullapplication. We will, if possible, pro-vide additional time for Comprehen-sive Grant applicant in future fiscalyears.

§ 570.427 SIXME PURPOSE GRANTPROGRAM GENERAL REQUME3LNT

This section was previously designat-ed § 570.429. The proposed regulationsprovided in § 570.429(b) that a commu-nity had to "substantially complete"any project for which It had receivedfunding, which was further defined as"75 percent of the funds obligated and50 percent of the funds expended,"before It could apply for a Single Pur-pose Grant. Communities pointed outthat no such standard was being ap-plied to Comprehensive grantees andthat in many cases the failure toachieve such results was beyond thecontrol of the applicants. The revisedregulations removes this, performancestandard. In lieu of this requirement,the same performance standards as de-scribed In Section 570.423(c) will be ap-plied to all previous recipients of dis-cretionary grants in determiningwhether or not performance has beenadequate to consider them for anothergrant.

Considerable confusion resulted overthe apparent contradictions In defin-ing a Single Purpose Program. Thepreamble indicated that a Single Pur-pose Program could consist of a singleactivity or a number of activities. Sec-tion 570.429(a) defined it as a singleactivity or project, and Section570.420(d)(2) described It as "essential-ly one activity." The definition In thefinal rule is now contained in§ 570.427(a) and has been clarified toexplain that a Single Purpose preap-plication may consist of one or moreprojects, each involving one or moreactivities designed to address a specificcommunity development need.. This clarified definition of Single

Purpose Grants should permit commu-nities to undertake a wide-range of ac-tivities, such as street repairs, andsidewalk construction, which supportor are incidental to a primary activity.

Applications for Single PurposeGrants which propose substantial ac-tivities to address more than onemajor need, for example housing reha-bilitation and a major public Improve-ments program, are describing two

projects, each of which will be ratedseparately.

§ 570.425 s5LMCZON SYSTf( FORSINGSL PURPOSE GRANTS

The rating mechanism for the SinglePurpose Program was contained in§ 570.430 of the proposed rules. Sever-al suggestions were made that 1970Census data should not be relied on torate communities under the needs fac-tors In § 570.430 (a) through (d) be-cause the data Is no longer relevantand does not represent changes thathave taken place since the data was as-sembled. Unfortunately, the Censusdata, as updated, are the only uniformdata available in all communities thatmay be competing for discretionarygrant& While certain communities orplanning areas may have more recentinformation, the use of this informa-tion would not be fair to those commu-nities that do not have such data.

Paragraphs (a) through (d), Needsfactors; f) Benefit to low- and moder-ate-income persons; (g) PerformanceIn housing and equal opportunity ef-forts: and (i) Final ranking; and theactual method for assigning scores foreach factor have been stated in thefinal rule as proposed in Section570.428 for the reasons expressed pre-viously.

Various concerns were raised con-cerntng the program factor,§ 570.430(e). Some commenters felt thedistinction between relationship andimpact was too hard to define. Othersfelt the program areas that would beaddressed were too limiting and didnot let a community design a programin such a manner that they could takeadvantage of all the eligible activitiespermitted under the legislation. Afterconsidering the comments, we agreethat the difference between relation-ship and impact may be too fine andwe have eliminated the considerationof relationship. In view of the reviseddefinition of Single Purpose, whichwill permit more than one activity, wehave expanded the types of activitiesthat can be undertaken. Concern wasalso expressed that the decisions thatwere to be made were too subjective.To assist applicants In describing aprogram in such a manner that it canbe considered equitably with others,subsection (e) now defines what will beconsidered in making the assessmentdeterminations.

Several commenters asked for defini-tions of terms contained in § 570.430(i),Other Factors, now subsection (h) of§ 570.428. HtUD field offices will pro-vide the definition of those terms asthey will be applied within their juris-dictions. Several comments were alsoreceived suggesting that State pro-grams be included in § 570.430(1)(4).State program recognition is providedfor within (h)(1XB).


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§ 570.429 PREAPPLICATIONS FOR SINGLEPURPOSE GRANTS

Paragraph (a)(2)(iv) reflects changesin the proposed submission require-ments of § 570.431 to conform to thenew calculation of benefit to low- andmoderate-income persons in§ 570.428(f).

Several commenters pointed out,that the proposed regulations did notrequire a Citizen Participation certifi-cation with the preapplication. Thiswas an oversight and the requirementhas been added at (a)(2)(vi). The re-quirement for a Grantee PerformanceReport or status report has also beenincluded at (a)(4).

Commenters suggested that toomuch information was required to besubmitted with the preapplication,and that the data requirements weretoo extensive. Changes made in the se-lection criteria listed in § 570.428 willredude the amount of information re-quired, although we do recognize thepreapplication still requires substan-tial information. However, since wewant to select the best designed pro-jects that benefit low- and moderate-income persons to the greatest extent,sufficient information is required topermit us to make reasonable judg-ments and decisions that promotethese objectives.

§ 570.430 APPLICATIONS FOR SINGLEPURPOSE GRANTS

Proposed § 570.432 has been substan-tially revised in subsection (a) to moredirectly reflect the statutory require-ments. As the legislation requires, ap-plicants which have a population of25,000 or more or which are located inan urbanized area of a Standard Met-ropolitan Statistical Area, must submita summary of a three-year communitydevelopment plan which identifies itscommunity development and housingneeds, describes 'a comprehensivestrategy for meeting those needs, andspecifies both short- and long-term ob-jectives to be met by the strategy. Asthe law permits, we are exempting allother applicants from this require-ment.

Subsection (b) now also better re-flects the statutory language. Severalcomments expressed the-opinion thatthe HAP requirements were too com-plex for small communities to dealwith effectively. In response to thesecomments and other recommendationsfor specific changes, we have attempt-ed in subsection (c) to simplify theHAP requirements without compro-mising statutory intent.

A few comments recommended thatwe make clear that applicants locatedwithin a county which has an ap-proved HAP, or incorporated areasthat wish to apply for funding whichare in a county preparing a HAP, arenot required to submit a separateHAP. We have clarified this situation

by permitting such applicants tosubmit the county's plan "in lieu ofpreparing a separate Housing Assis-tance Plan." This arrangement re-quires an agreement between thecounty and ,the applicant. We havechanged the language pertaining tothis agreement to state that the agree-ment must Identify the applicant's fairshare of the housing assistance goalsand obligate the applicant to assumeresponsibility for its fair share.

There were several comments sug-gesting that the term "households" besubstituted for "persons" and "fam-ilies" in the discussion of Housing As-sistance Plan requirements. We havemade this change where appropriate.

In response to other comments,paragraph (c)(1)(1) makes it clear thatthe applicant is required only to de-scribe the condition of the housingstock in'the community. We have alsoadded that the required estimate ofvacancy rates shall take into accountonly "non-seasonal, available" units.

As requested by comments, defini-tions of the terms "tenure" and"household type" have been added insubsection (c) where appropriate. Thedefinition of household type has beenrevised to include elderly, handi-capped, family and non-elderly indi-viduals, and large family.

The specific reference to assessmentof the housing assistance needs ofhandicapped, female heads of house-holds and each minority group cur-rently residing in or expected to residein the community, has been replacedby the general requirement to includeinformation on any identifiable seg-ment of the total group of low-incomehouseholds in the community, as somecommenters requested.

Several comments suggested thatthe "expected to reside" requirementbe eliminated entirely, or at leastwaived for communities with a popula-tion under 2,500. This information,however, is legislatively required fromall applicants. Other comments sug-gested that applicants be permitted touse non-statistical means to estimatethe number of those expected toreside in Instances where reliable sta-tistical data are not available. Section570.306 of the llock grant regulationsrequires that applicants in metropoli-tan areas use the established "expect-ed to reside" formula, but non-metro-politan applicants may use othermeans to estimate the number ofthose expected to reside..

We received a few comments whichsuggested that units proposed for re-habilitation in the HAP goals shouldbe required to meet standards otherthan local housing codes. This provi-sion has been changed in paragraph(c)(2) to require that units proposedfor rehabilitation must meet, at aminimum, the Section 8 ExistingHousing Quality Standards upon con-

pletion. We have retained the provi-sion that weatherizatlon and othersimilar activities will not satisfy reha-bilitation housing assistance goals.

Several comments requested that ap-plicants be permitted to submit re-quired information by enumerationdistrict as well as census tract. Subsec-tion (d) now allows applicants tosubmit maps which Identify requiredinformation by census tract, enumera.tion districts, or geographic quadrantof the community where data fromcensus tracts or enumeration districtseither are unayailable or include asubstantial area.

§ 570.431 CITIZEN PARTICIPATION

Of the numerous comments receivedon the citizen participation (Q 570.433),the majority were concerned with thecomplexity and detailed structure ofthe requirements. Many commentsstated that the citizen participationrequirements were plainly "big cityoriented" and did not acknowledge thecharacter of small cities which lackthe resources necessary to complywith such extensive requirements. Inresponse to these comments, the citi-zen participation requirements for theSingle Purpose Program have been ex-tensively revised and simplified. Sim-pliflcation of this Section Is not to beconstrued as minimizing the impor-tance of citizen participation, but isonly intended to provide small commu-nities with the flexibility necessary toachieve meaningful citizen participa-tion. We have also restructured whatis the new Section 570.431 to makeclear not only the applicant's responsi.bilities, but also the sequence of ac-tions which must be taken at eachstage in the preapplication/applica-tion process.

§ 570.432 SINGLE PURPOSE GRANTS FOIlIMMINENT THREAT TO PUBLIC HEALTHOR SAFETY

A few comments requested clarifica-tion of the term "unique and unusualcircumstance" used in § 570.434(a)(1).This phrase is not further defined,however, because we believe that thephrase which follows It " * * not forthe type of threat that occurs withfrequency in a number of communitieswithin the states * " adequately con-veys the idea that needs which are eli-gible for Imminent Threat fundingmust constitute a circumstance un-common for the State, as well as animminent threat to public health andsafety.

Several comments requested thatthe level of available funding for Im-minent Threat grants be increasedfrom 15 percent; a number of othercomments suggested that the Immi.nent Threat set aside be decreased.We consider the reservation of up to15 percent of funds allocated pursuantto Subpart B and assigned to the Area



Office for Small Cities Grants in met-ropolitan and nonmetropolitan areasas an adequate maximum level offunding for the imminent threat needsof most areas. Area Offices may decideto reserve less than that percentage ifconditions within their jurisdiction sowarrant.

Several comments recommendedthat we establish a clear set of prior-ities within -the category of ImminentThreats to Public Health or Safety.However, we have decided to remainwith our original position that the ur-gency .and immediacy of the threatshall be verified, on a case by casebasis, by an appropriate authorityother than the applicant, prior to sub-mission of a full application to theArea Office for concurrence. This pro-vision is intended to give the AreaOffice a measure of discretion In thedetermination of imminent threats. Ifthe Area Office concurs with the find-ing that an imminent threat to publichealth and safety exists, a Single Pur-pose Grant may be awarded to allevi-ate this condition, despite the possibil-ity that other requests for imminentthreat funding may be received afteravailable funding has been depleted.

One comment suggested that the re-quirement that all funds to be commit-ted no later than the end of the fiscalyear in which they were assigned,Q 570.434(b)(1)), was too restrictive.This provision has been removed fromthe regulations In view of the fact thatSmall Cities funding decisions will notbe made until the last quarter ofFiscal Year 1978, and because we donot wish to restrict the availability offunds for Single Purpose Grants forimminent threats to public health orsafety.

Several comments suggested thatthe language pertaining to themethodof allocating funds set aside for urgentneeds should be clarified to State thatsuch funds shall be reserved out offunds available for Single PurposeGrants. This language has been in-cluded in paragraph (b)(1).

§ 570.433 MUD REVIEW AND ACTIONS ONPULL APPLICATIONS FOR SINGLE PUR-POSE -AND coMPREHENSIVE GRANTS

Numerous comments suggested thatSection 570.435, which authorized anapplicant to incur costs for the plan-ning and preparation of an applicationfor funds available under this subpartincluding citizen participation, be ex-panded to include the costs of preap-plication. We have considered this pos-sibility for several years but again de-cline to adopt it. Potential reimburse-ment would encourage the employ-ment of outside experts and could leadto a substantial increase in the costs ofpreparing competitive preapplications.Such a result would be unfair to thosecommunities not selected. The word-ing of this section, which permits au-

thorization to incur costs, has beenclarified to convey the intended mean-ing that the authorization will be ex-tended to all applicants invited tosubmit a full application.

§r70.434 PROGRAM AMENDMENTS FORsNoE PURPosE AND coMPREHEzsVEGRANTS

This Section was previously desig-nated § 570.436. A suggestion was madethat the language of proposed para-graph (a) be expanded to give consid-eration to any program amendmentswhich would improve the effectivenessof local programs. For this reason, theprovision which states that 'HUD willconsider amendments only if they arenecessitated by actions beyond thecontrol of the applicant" has been re-moved.

A new paragraph, designated (b), de-scribes when prior HUD approval foramendments to a Housing AssistancePlan is required.

§ 570.435 MODIFIED OMB CIRCULAR NO.A-95 PROCEDURES FOR THE SMALLCITIES PROGRAM

This Section was previously desig-nated § 570.437. Several comments rec-ommended that both preapplicationand application be submitted for A-95clearinghouse review 45 days, insteadof 30 days, prior to submission toHUD. This recommendation was notadopted for the preapplication be-cause It would lengthen the timeframe for the entire application pro-cess. As a further means to ensurethat funding decisions will be madewithin the fiscal year, we have revisedthe A-95 review procedure of full ap-plicatlons, now contained in paragraph(c), to provide that applications maybe submitted to the appropriate Stateand areawide A-95 clearinghousesprior to or concurrent with submissionto HUD. The clearinghouses will thenhave 45 days from receipt of the appli-cation to review It and furnish any

-comments to HUD. We will not takeany final action on the applicationuntil either the comments have beenreceived or the time limit has expired.We have removed § 570.437(d), Consis-tency Requirement, which stated thatthe Department does not intend tofund any activities which were clearlyinconsistent with areawide or Stateplans, because HUD has no means ofdetermining the adequacy of theareawide or State plans in question.However, Area Offices are required byCPD Notice 76-23, dated November,1976, to obtain approval of the Region-al Administrator prior to approving aproject which a clearinghouse recom-mends for disapproval, or approvalwith substantial changes, If a success-ful resolution of the issues cannot bereached.

Numerous provisions of the SmallCities Program have been substantial-

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ly changed in the final rule primarilyas a result of comments received. Themajor revisions that have been madeinclude elimination of the thresholdrequirements for access to the pro-grams, revision of the method for allo-cating funds between the Single Pur-pose Program and the ComprehensiveProgram, and removal of the require-ment that no more than 25 percent ofthe funds may be expended on activi-ties which do not principally benefitlow- and moderate-income persons.These changes will make the programmore responsive to the needs of smallcities and will permit maximum flexi-bility to communities in designing pro-grams to meet their needs, and ensuretimely use of the funds. The proce-dures contained in Subpart F are ur-gently needed so the Department canmake funding decisions governingfiscal year 1978 appropriations withinthe same fiscal year and provide the.funds on an annual basis consistentwith the intent of the legislation.After weighing the desirability of pro-viding further rulemaking in this pro-ceeding against the urgent need forimmediate adoption of this rule, theAssistant Secretary for CommunityPlanning and Development has deter-mined that publication of the rule forcomment is impracticable, unneces-sary, and contrary to the public inter-est and that good cause exists formaking this rule effective March 1,1978.

A finding of Inapplicability with re-spect to environmental impact hasbeen prepared in accordance withHUD Handbook 1390.1. In addition,the inflationary impact of this rulehas been evaluated in accordance withExecutive Order 11821. Copies areavailable for inspection and copying inthe Office of the Rules Docket Clerk,Room 5216, Department of Housingand Urban Development, 451 7thStreet SW., Washington, D.C. 20410.

Accordingly, 24 CFR is amended byadding a new Subpart F as follows:.

The Table of Contents for Subpart FIs revised as follows:

Subpart F-Small Cities Frogr..

Sec.570.420 General570.421 Applications by States and CoUn-

tle Joint Applications570.422 State Participation [Reserved]570.423 Comprehensive Program General

Requirements570.424 Selection System for Comprehen-

sirve Grants570.425 Preapplicaton for Comprehensive

Grants570.426 Applications for Comprehensive

Grants570.427 Single Purpose Program General

Requirements570428 Selection System for Single Pur-

pose Grants570.429 Preapplcaons for Single Purpose

Grants570.430 Application for Single Purpose

Grants



570.431 Citizen Participation Require-ments for Single Purpose Grants

570.432 Single Purpose Grants for Immi-nent Threat to Public Health or Safety

570.433 HUD Review and Actions on PullApplications for Single Purpose andComprehensive Grants

.570.434 Program Amendments for SinglePurpose Comprehensive Grants

570.435 Modified 0MB Circular No. A-95Procedures for the Small Cities Program

Aum-oarrY: Title I, Housing and Commu-nity Development Act of 1974 (42 U.S.C.5301, et seq.); Title I, Housing and Commu-nity Development Act of 1977 (Pub. I 95-128); and sec. 7(d), Department of Housingand Urban Development Act (42 U.S.C.3535(d).)

Subpart F is revised to read as setforth below:

Subpart F-Small Cities Program

§ 570.420 General.(a) Scope and Applicability. This

Subpart describes the policies and pro-cedures that will be used to implementthe Small Cities Program. Funds forthis program are those providedthrough the metropolitan and non-metropolitan balances describes in§ 570.104(c) in Subpart B of this part.Except as modified in this Subpart,the policies and procedures set forthIn Subparts A, B, C, J, K, and 0 ofthis part, as well as 'those Sections ofSubpart D of this part which are spe-cifically cited, in this Subpart shallapply to the Small Cities Program.The HUD Environmental Review Pro-cedures contained in 24 CFR Part 58also apply to this Subpart.

(b) Program Objectives. The SmallCities Program will provide grants toStates and units of general local gov-ernment in both metropolitan andnonmetropolitan areas to undertakethe same community development ac-tivities as may be funded in the enti-tlement grant program. The SmallCities Program, however, is competi-tive in nature and the demand forfunds far exceeds the amount avail-able. Therefore, eligible applicants se-lected for funding will be those com-munities having the greatest need asevidenced by poverty and substandardhousing and whose applications mustadeiluately address locally-determinedneeds of low- and moderate-incomepersons, qonsistent with one or moreof the following purposes.

(1) Support realistic and attainablestrategies for expanding low and mod-erate income housing opportunities;

(2) Promote deconcentration oflower-income housing;

(3) Promote more rational land use;(4) Provide increased economic op-

portunities for low- and moderate-income persons;

(5) Correct deficiencies in public fa-cilities which affect the public healthor safety, especially of low- and moder-ate-income persons.

(c) Eligible applicants. Eligible ap-plicants are States and units of gener-al local government, excluding metro-politan cities, urban counties, units ofgovernment which are participating inurban counties or metropolitan cities,and Indian tribes eligible for assis-tance under Section 107(a)(7) of theAct. For the purpose of this Subpart, aunit of general local government in-cludes those entities described in§ 570.403(b)(i) (2) and (3). Applicationsmay be submitted individually, jointly,or by counties and States on bbhalf ofother units of government.

(d) Types of grants. Recognizing thatneeds of communities vary widely, theSmall Cities Program will consist ofgrants for two general type pro-grams-Comprehensive and SinglePurpose.

(e) Distribution of funds betweencomprehensive grants and the singlepurpose grants. Within both the met-ropolitan and nonmetropolitan bal-ances for each Area Office's jurisdic-tion, 25 to 35 percent of the funds willbe reserved for the Single PurposeProgram, with the remainder reservedfor the Comprehensive Program. Ex-ceptions to these percentages may bemade where there is insufficientdemand for Comprehensive Grants tojustify a 65 percent reservation orwhere the demand for ComprehensiveGrants would justify a reservation ofmore than 75 percent.

(f) Size of Grants.-(1) Ceilings.Within the metropolitan and nonme-tropolitan areas of each Area Office'sjurisdiction, HUD may establish gen-eral ceilings per applicant for bothSingle Purpose and ComprehensiveGrants. Separate ceilings may be es-tablished for Comprehensive 'Grantswith multiyear commitments, or jointapplications, or for applications inbehalf of other units of government.

(2) Individual Grant Amounts. BothSingle Purpose and ComprehensiveGrants for specific grantees will beprovided in amounts commensuratewith the size of the applicant and theapplicant's program. In determiningappropriate grant amounts for eachapplicant, HUD may consider an appli-cant's population, need, proposed ac-tivities, ability to carry out the pro-posed program, previous fundinglevels, and availability of hold-harm-less funds.

(g) Restrictions on applying forgrants. Applicants may apply foreither a Comprehensive Grant or aSingle Purpose Grant, except forStates or counties applying on behalfof other units of government as de-scribed in § 570.421(b), in which casethe State or county may apply forboth a Single Purpose and a Compre-hensive Grant. A preapplication for aComprehensive Grant which does notmeet the definition of such a programwill be considered for a Single PurposeGrant.

(h) Method of selecting grantees. (1)HUD will establish national selectionand rating systems for both the Con-prehensive and Single Purpose Pro-grams which identify the criteria thatwill be used In selecting among appli-cants. Preapplications are required forboth programs. These will be dividedinto metropolitan and nonmetropoll-tan pools for both programs and ratedand ranked pursuant to §§ 570,424 and570.428, respectively. Applicants mustinclude sufficient information In thepreapplication to permit HUD to ratethe preapplication against the variousselection criteria, and must adviseHUD of the source of information andthe method used to compile the Infor-mation for the preapplication. Exist-ing sources of Information, such asareawide analyses, State plans orneeds assessments, should be usedwhenever possible. Decisions made byHUD in selecting grantees will be do.cumented and made available to thegeneral public upon request.

(2) HUD will establish deadlines forsubmission of preapplications by pub-lication of a Notice In the FEDEMALREGISTM.

(1) Data. Data used in this Subpartwith respect to the needs factors(§ 570.424(a)-(d) and § 570.428(a)-(d)),in the selection criteria shall be basedon information acquired by HUD fromthe United States Bureau of theCensus for use in allocating funds pur-suant to Subpart B of this Part for thesame fiscal year appropriation. Howev-er, a HUD Regional Office may autho.rize the use of updated data developedby a State agency for the entire non-metropolitan area or all metropolitanareas of the State in lieu of Federalcensus data if the following criteriaare met:

(1) The data have been updated insuch a manner that they can be ap-plied to all potential applicants in thenonmetropolitan or metropolitanareas of a State,

(2) The data are generally availableand can be verified by HUD;

(3) The data can be submitted In ausable form no later than 30 daysprior to the deadline for submission ofpreapplications.

(J) Previous audit findings. A preap-plication will not be accepted from anycommunity that has an outstandingaudit finding for any HUD programundertaken by the community or hasan outstanding monetary obligation toHUD as a result of such a finding,Waivers to this prohibition may beprovided by the Regional Administra-tor, but in no instance shall a waiverbe provided when funds are due HUD,unless a satisfactory arrangement forrepayment of the debt has been made,

(k) Program Design. The program asa whole must principally benefit low-and moderate-income persons. In addi-tion, the selection process of the Small

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Cities Program is heavily weighted.toward those programs -which havethe greatest benefit to low- and moder-ate-income persons.All aHctivities con-tained within sucA programs musteither benefit low- -and moderate-income families, or aid in the preven-tion or elimination of slums or blight,or meet other community develop-ment needs having a particular urgen--cy.

§ 570.421 Applications by States and coun-•ies; Joint Applications.

(a) General In addition to applica-tions by cities in behalf of therrelves,States and counties may apply forSingle Purpose or ComprehensiveGrants for use in specific locationswithin metropolitan or nonmetropoll-tan areas in behalf of themselves andin behalf of other units of generallocal government. For purposes of thissection, the term "county" does not in-clude urban counties.

,(b) PreappZcations and applicationsin behalf of others. Applications byStates and counties submitted inbehalf of other units of general localgovernment shall be pursuant to awritten agreement between the countyor State and the-participating units ofgeneral local governmenL Such agree-ments must be submitted with the

- preapplication.(c) Joint preapplicatons-and appli-

cations. Units of general local govern-ment, including counties, may submita joint preapplication or -applicationwhich would address common prob-lems faced by the jurisdictions. Thesepreapplications and applications mustbe pursuant to written cooperationagreements, submitted with the preap-plications, -WVl be submitted by onlythe unit of government disignated asthe lead unit for adminktrative pur-poses. The lead unit of governmentshall be considered the applicant.

(d) Limits on applying for assis-tance' Units of general local govern-ment included in an application sub-mitted by a State or County in theirbehalf, or included in a joint. applica-tion, -may not otherwise apply for as-sistance under this Subpart.

(e) Data considerations. With re-spect to county and State applicationsin behalf of themselves, only data re-lating to those unincorporated and in-

- corporated areas where community de-velopment activities are to take placeshall be included for use in rating theneeds factor of the selection criteria( 570.424(a)-(d) and § 570.428(a)-(d)).With respect to State and county ap-plications in behalf of units of generallocal government, and for joint appli-cations, only data relating to the unin-corporated or incorporated places inwhich activities are'to take place shallbe considered in rating the needsfactor of the selection criteria.

(f) Housing Assistance Plans., (1) Ifthere is -a HUD-approved Housing As-

sistance Plan for a unit of generallocal government In which the Stateor county Intends to carry out activi-ties, the State or county may satisfyits Housing Assistance Plan require-ments by indicating Its support of theexistingplan.

(2) For Joint applications and appli-cations In behalf of units of generallocal government, the Housing AssLs-tance Plan (EHAP) shall relate to eachunit of government In which activitiesare to be carried out. The plan shall beadopted by each unit of general localgovernment Included in the applica-tion and shall be consistent with anyother HAP applicable to these Juris-dictions.

(g) Urban counties and metropolitancities. A state or a county may notapply for funds provided under thissubpart for use In a metropolitan cityor an urban county, Including any unitof general local government that isparticipating In the metropolitan cityor urban county.

§ 570.422 State participation. [Reserved]

§ 570.423 Comprehensive program generalrequirements.

(a) Definition. A comprehensive pro-gram must meet all of the followingcriteria:

(1) Address a substantial portion ofthe Identifiable community develop-ment needs within a defined concen-trated area;

(2) Involve two or more activitiesthat bear a relationship to each other,excluding administration, planning.

" and management, and which either In,terms of support or necessity are car-ried out in a coordinated manner,

(3) Have beneficial Impact within areasonable period of time;

(4) Be developed through assessmentof the applicant's community develop-ment, housing, and economic needs;

Exceptions to the requirement thatthe activities be concentrated within adesignated area may be made if theapplicant can demonstrate to HUD'ssatisfaction that the proposal repre-sents a reasonable means of addressingthe needs identified.

(b) Funding Commitments. (1) HUDwill make commitments of up to threeyears for the Comprehensive Program,subject to the availability of appropri-ations. In determining the number ofyears for which a commitment will bemade, HUD will consider the nature ofthe program proposed, the previousperformance of the applicant, includ-ing both community development andhousing;, the capacity of the applicantto carry out the program proposed;the scheduling of the program; andthe year-by-year fund requirements.Special consideration for funding com-mitments beyond one year will begiven to those applicants currentlycarrying out a Comprehensive Pro-

gram, and subject to the phase-out pro-islons of Section 106(h) of the Hous-ng 2nd Community Development Actof 1974, as amended. Grant requestsmust either by themselves, or in com-bination with other stated fundingsources, be sufficient to complete theprogram described.

(2) Once a community has been se-lected for a multyear commitmentand funds are available, it will nothave to compete in the selection pro-cess for funding during subsequentyears. Fumds will be provided in subse-quent fiscal years after the granteehas submitted the Annual CommunityDevelopment Program, and HUlD hasdetermind that the annual programeither is consistent with that describedin the original application or has beenproperly amended pursuant to§ 570.434, and the community's perfor-mance Is adequate. Performance deter-minations will be made based on thecriteria described in § 570.423(c).

(c) Capacity and performance con-siderations. No grant will be made toan applicant that does not have thecapacity to undertake the proposedprogram. In addition, applicants whichhave participated in the Block GrantProgram previously must have per-formed adequately. In determiningwhether an applicant has performedadequately, HUD will examine the ap-plicant's performance in the followingareas:.

(1) Community development activi-ties. (1) The rate of progress achievedIn moving activities into execution;

(i) The rate of expenditure or obli-gation of community developmentfunds.

(2) Housing assistance. (i) Theactual progrezs achieved in meetinggoals established under an approvedHousing Assistance Plan;

(i) Absent achievement of such-goals, the actions taken by the com-munity to facilitate the provision ofhousing assistance for low- and moder-ate-income persons, such as:

(A) Removal of impediments such asrestrictive zoning or buildisg codes;

(B) Changes in land use to facilitateconstruction;

(C) Provision of sites and/or neces-sary infra-structure;

(D) Organization of a housing au-thority or other similar entity;

(E) Development of a Section 701land use or housing element.

(3) Compliance with applicable lawsand regulations. (I) The compliance ofthe community with the laws, regula-tions, and Executive Orders applicableto the Community Development BlockGrant program;

(it) Resolution of findings made as aresult of HUD monitoring;

(ill) Resolution of audit findings.

§ 570A24 Selection system for Comprehen-sive Grants.

Preapplicatlons will be rated andscored against each of the following

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nine factors. All points for each factorwill be rounded to the nearest wholenumber. The maximum score possibleIs 1025 points.

Points(a) Need-Absolute number of poverty per-

sons ................................................................. 100(b) Need-Percent of poverty persons.......... 50(c) Need-Absolute number of substandard

housing units ........................ 30(d) Need-Percent of substandard housing

units ......................................................... ..... 20(e) Program factor-Impact of the proposed

program ......................... 400(f) Benefit to low- and moderate-income

persons ............................................................ 200(g) Performance:

Housing. .......................... ........................ 100Local equal opportunity efforts ............. 50

(h) Housing opportunity plan (HOP):Applicant participating .............. 50

(1) Hold-harmless phaseout communities . 25

Preapplications from counties inbehalf of themselves, States in behalfof themselvds or in behalf of counties,or joint preapplications in which acounty is participating, will be scoredseparately with respect to the needsfactors of § 570.424 (a)-(d).

(a) Need-absolute number of pover-ty persons (100 points). All applicantswill be ranked in terms of the numberof persons whose incomes are belowthe poyerty level according to thelatest data from the Bureau of theCensus. Individual scores will be ob-tained by dividing each applicant's ab-solute number of persons in povertyby the greatest number of persons inpoverty of any applicant and multiply-ing by 100.

(b) Need-percent of poverty persons(50 points). All applicants will beranked in terms of the percentage oftheir population below the povertylevel according to the latest data fromthe Bureau of the Census. Individualscores will be obtained by dividingeach applicant's percentage of personsin poverty by the highest percentageof persons in poverty of any applicantand multiplying by 50.

(c) Need-absolute housing need- (30points). All applicants will be rankedin terms of their absolute housingneeds, as identified in the latest dataavailable from the Bureau of theCensus. Need will be measured by thenumber of units which lack plumbingor are overcrowded. Individual scoreswill be obtained by dividing each ap-plicant's absolute housing need by the.highest number of such units of anyapplicant and multiplying the resultsof 30.

(d) Need-percent of housing need(20 points). All applicants will beranked in terms of their percent ofhousing need, as Identified in thelatest data available from the Bureauof the Census. Need will be measuredby the percent of units which lackplumbing or are overcrowded. Individ-ual scores will be obtained by dividingeach applicant's percentage of housingneed by the highest percentage ofsuch housing needs of any applicantand multiplying the results by 20.

(e) Program factor-impact of theproposed program (400 points). Eachapplicant shall select four programdesign criteria from among the follow-ing eleven. HUD will measure theimpact of the program on each of theprogram design criteria selected, basedon the results to be achieved whenconsidering the amounts of fundssought, the persons to be benefitted,the degree and nature of the benefit,additional actions that may be neces-sary to fully resolve the need, previousactions the applicant may have takento address that need, environmentalconsiderations, and where appropriate,site selection standards.

(1) Program design criteria. (1) Sup-ports comprehensive neighborhoodstabilization and/or revitalization inlow and moderate income areas, orconserves the housing supply for low-and moderate-income persons;

(ii) Provides housing opportunitiesfor low- and moderate-income familiesand minorities on a regional basis; orimplements a HUD-approved HousingOpportunity Plan;

(iii) Provides opportunities for spa-tial deconcentration within the local-ity of low- and moderate-income fam-_flies and minorities;

(iv) Supports the expansion of hous-ing for low- and moderate-income per-sons;

(v) Addresses a serious deficiency ina community's public facilities for theprincipal benefit of low- and moderate-income persons;

(vi) Provides for expanded economicopportunities for persons of low- andmoderate-income in the form of per-manent employment;

(vii) Benefits low- and moderate-income persons by removing slums orblighted conditions;

(viii) Implements a State growth orresource coordination plan;

(lx) Enhances a community's posi-tion as a regional center, economic de-velopment center, or growth center,. (x) Resolves a serious threat to thehealth or safety of low- and moderate-income persons;

(xi) Deals with the impact caused byother Federal actions or policies par-ticularly on low- and moderate-incomepersons, and/or supports other Feder-al programs being undertaken in thecommunity. -

(2) Rating and ranking methods.This factor requires a two-step ratingprocess. First, the potential of the pro-posed program of activities to achievethe results intended by each selectedcriterion when considered in relationto other communities addressing thesame criterion will be assessed and anumerical value assigned, based on thefollowing.The results would have no Impact .......... 0The results would have minimal Impact ..... 2The results would have a moderate impact. 4The results would have a significant Impact 8

After each of the four criteria selectedby an applicant has been rated andvalues assigned, the total Is added(Program Impact Score Maximum is32). Then, the actual points are deter-mined by dividing each applicant'sProgram Impact Score by the highestProgram Impact Score achieved byany applicant and multiplying theresult by four hundred.

(f) Benefit to low- and moderate.income persons (200 points). All appli-cants will be ranked in terms of thepercent of funds which will benefitlow- and moderate-income persons. In-dividual scores will be obtained by di-viding each applicant's percentage bythe highest percentage achieved byany applicant and multiplying the re-sults by 200. Costs of planning, man-agement and administration will notbe included in this computation. Theappropriate median income amountsfor low and moderate income will besupplied by HUD.

(g) Performance in housing andequal opportunity (150 points total).(1) Housing efforts. Twenty points foreach of the following criterion will beawarded to each applicant that candemonstrate outstanding performancein: (i) providing housing for low- andmoderate-income families located in amanner Which provides housingchoices for areas outside of minorityand low-income concentrations; (ii)dispersal, by race, in occupancy of itsexisting assisted housing;

(ill) Meeting its large family housingassistance needs in relation to thatproportion of need;

(iv) Carrying out housing assistancegoals from previous HAP(s).

(v) Enforcement of a Fair HousingOrdinance.

(2) Local equal employment and en-trepreneurial efforts (50 points). (1)Twenty-five points will be awarded toany applicant that demonstrates thatthe percentage of its contracts basedon dollar value, awarded within thepast two years to minority owned, con-trolled, or managed businesses, isgreater than the percentage of minor-ities residing within the county fornonmetropolltan applicants, or withinthe SMSA for metropolitan appli-cants.

(ii) Twenty-five points will be award-ed to any applicant that demonstratesthat its percentage of mainority em-ployees is greater than the percentageof minorities within the county fornonmetropolitan applicants, or withinthe SMSA for metropolitan appli-cants.

(h) Housing Opportunity Plan (50points). Fifty points will be awarded toany jurisdiction participating in aHUD-approved areawide Housing Op-portunity Plan.

(i) Hold-Harmless Provisions (25points). Twenty-five points will beawarded to a community which Is cur-


8484


rently carrying out a comprehensive (v) General locations for proposedcommunity development program and new or rehabilitated housing assis-which is subject to the phase-out pro- tance.visions of Section 106(h) of the Hous- (5) If the applicant has receiveding and Community Development Act prior assistance under this part, aof 1974, as amended. status report regarding performance

(j) rnW ranking. -The points re- with prior grants pursuant toceived by each applicant on the nine § 570.423(c), or the Grantee Perfor-rating factors will be totaled and the mance Report in lieu of the statuspreapplications ranked according to report.the final point totals. Invitations for (b) Submission of additional data.full applications will be made based on Only data submitted by the deadlinethis final ranking to the extent funds for submission of preapplications willare available. HUD may invite addi- be considered in the selection process,tional applications on a stand-by basis unless specifically requested by HUDin the event one of the applications in writing. All other data receivedfrom the higher ranked applicants is after the deadline will be returned tonot approved, or additional funds the applicant.become available. § 570.426 Applications for Comprehensive

§ 570.425 Preapplications for Comprehen- Grants.sive Grants. (a) Application requirements. The

(a) Submission requirements. Preap- application requirements contained inplications shall be submitted on HUD Sections 570.303, 570.304, 570.305.forms to the appropriate Area Office 570.306 (excluding paragraphand shall consist of the following. (a)(4)(1)), and 570.307 of Subpart D of

(1) Standard Form 424, as prescribed this Part, shall apply to applicants forby OMB Circular A-102; , Comprehensive Grants.

(2) A program narrative statement (b) Coordination with applicationswhich consists of the following. for CDBG Entitlement Grant&. Where

(i) A brief description of the appli- possible, HUD will use Informationcant's community development prob- submitted with a hold-harmless enti-lems/needs to be served by the pro- tlement application, such as a Housingposed program; and identification of Assistance Plan which was preparedthe criteria for selection to be ad- for a grant in the same fiscal year indressed by the program; which the Small Cities grant Is being.

(ii) A description of the program to sought. Communities that anticipatebe carried out with assistance under applying for a Small Cities Compre-this Subpart and an estimate of the hensive grant in addition to theircost of the proposed activities; hold-harmless entitlement, are encour-

(iii) Information that demonstrates aged to develop an overall strategythe impact the proposed program will and comprehensive program that an-have on the design criteria being ad- ticipates some additional funding, butdressed; which would lend itself to be segment-

(iv) An analysis of the amount of ed if the Small Cities request is notfunds that will be used to benefit low- funded. Additional steps which couldand moderate-income persons. The be taken to save time and effort wouldanalysis shall indicate the total be to:number of persons to be served, the (1) Include the possibility of addi-number of persons that meet the defi- tional funding in the planning phasenition -of low and moderate income, in such a manner that citizen particl-how such low- and moderate-income . pation requirements would have beenpersons are served, and the nature of met if and when a preapplication for athe benefit; Small Cities Comprehensive grant Is

(v) A brief statement describing th - submitted;overall -housing strategy that will be (2) Submit such proposals throughemployed to meet the community's the A-95 clearinghouse process withhousing needs; and the annual hold-harmless entitlement

(vi) Other information appropriate application to eliminate the necessityto respond to the other criteria for se- *Of resubmitting such information iflection set forth in § 570.424. and when an application for a Small

(3) A certificate assuring compliance Cities Comprehensive Grant is submit-with all the -citizen participation re- ted.quirements of § 570.431(c) and (d)(1). (c) Title VI compliance. All appli-

(4) A map of the applicant's jurisdic- cants, except those currently receivingtion which clearly identifies: a hold-harmless grant, will be required

(i) Census tracts and/or enumera- to submit, on a form prescribed bytion districts; HUD. evidence of compliance with

(ii) Location of the proposed activi- title VI of the Civil Rights Act of 1964.ties; The purpose of the evidence is to

(iii) Concentrations of minority enable HU) to determine whether thegroups; - benefits to be provided will be on a

(iv) Concentrations of low- and mod- non-discriminatory basis and willerate-income persons, and achieve the purposes of the program

for all persons, regardless of race,color, or national origin.

§ 570.427 Single purpose program generalrequirements.

(a) GeneraL The Single Purpose Pro-gram will provide funds for one ormore projects consisting of an activityor a set of activities designed to meet aspecific community development need. -Funds will be made available to ad-dress serious problems with housingneeds or economic conditions whichprincipally affect persons of low- and

.moderate-income or public facilitieswhich affect the public health andsafety.

(b) Projects. Applicants may seekfunds within a single preapplicationfor more than one project, as long asthe total grant request is within anygrant ceilings and individual grantamounts that have been established.Each project will be rated separately.Grants requested, either -by them-selves or in combination with otherstated funding sources, must be suffi-cient to complete the program.

(c) Performance Requirements. Com-munities which are currently carryingout or have carried out a metropolitanor nonmetropolitan discretionarygrant program must satisfy the perfor-mance criteria described in Section570.423(c) before they may apply foranother grant. Performance determi-nations will be made as of the date thepreapplication is submitted to theArea Office.

§ 570.428 Selection system for Single Pur-pose Grants.

Preapplications will be rated andscored against each of the followingeight factors. All points for eachfactor will be rounded to the nearestwhole number. The maximum scorepossible is 875 points.

points0 Need-asolute number of poverty

3 - 100(b) Need-percent of poverty Peionz... 50(c) Need-absolute numberof sub-

standard housing units -,_,30(d) Need-percent of sub:;andard

housing units_ 20(e) rogram factor:.

Impact of the propoed program- 200(f) 3enefit to lo*w- and moderateLncome

pern 200(g) Perfoa

Housng 100Ical equal opportunity efforts.. 50

(h) Other:.Houzing opportunity plan 50Enhances poition as a regional

ceter 25Implements State growth plan-.. 25Other Federal programs 25

Preapplications from counties inbehalf of themselves, States in behalfof themselves or in behalf of counties,or Joint preapplications in which acounty is participating, will be scoredseparately with respect to the needsfactors of § 570.428(a)-(d).

(a) Need-absolute number of pover-ty persons (100 points). All applicants


8485 "


will be ranked in terms of the absolute-number of poverty persons below thepoverty level according to the latestdata from the Bureau of the Census.Individual scores will be obtained bydividing each applicant's absolutenumber of poverty persons by thegreatest number of poverty persons ofany applicant and multiplying theresult by 100.

(b) Need-percent of poverty persons(50 points). All applicants will beranked in terms of the percentage oftheir population below the povertylevel according to the latest data fromthe Bureau of the Census. Individualscores will be obtained by dividingeach applicant's percentage of povertypersons by the highest percentage ofpoverty persons of any applicant andmultiplying the results by 50.

(c) Need-absolute housing need (30points). All applicants will be rankedin terms of their absolute housingneed, as identified in the latest dataavailable from the Bureau of the'Census. Need will be measured by thenumber of units which lack plumbingor are overcrowded. Individual scoreswill be obtained by dividing each ap-plicant's absolute number of housingunits which lack plumbing or are over-crowded by the highest amount ofsuch housing units of any applicantand multiplying the results by 30.

(d) Need-percent of housing need(20 points). All applicants will beranked in terms of their percent ofhousing need, as identified in thelatest data available from the Bureauof the Census. Within nonmetropoll-tan areas, need will be measured bythe percent of units which lack plumb-ing or are overcrowded. Individualscores will be obtained by dividingeach applicant's percentage of housingneed by the highest percentage ofhousing need of any applicant andmultiplying the results by 20.

(e) Program factor-impact of theproposed program (200 points). All ap-plicants will be rated based on theimpact of the proposed project willhave on the need Identified. TheIntent of this factor is to select amongthe projects which are proposed to ad-dress a similar problem, area, thoseprojects which will have the most sig-nificant impact. In assessing impact,consideration will be given to theamount of funds requested by the ap-plicant, the results to be achieved, theextent and nature of benefit to low-and moderate-income persons, any ad-ditional actions that may be required,previous actions taken by the appli-cant, environmental concerns, site se-lection standards where appropriate,and the nature of the activity.

(1) Problem areas. The problemareas cited in the preapplication forwhich funds are being requested mustbe in one of the following three cate-gories:

(I) Housing.(ii) Deficiencies in public facilities

which affect the public health andsafety.

(iII) Economic conditions.The applicant must explairr-how theproject being proposed impacts on theproblem area selected, and the needsof low- and moderate-income persons.Specific measurable terms should beused in this explanation.

(2) Rating method. All projects ad-dressing the same problem area will becompared in terms of Impact on theidentified problem area, as follows:

The project would have no impact... 0The project would have minimal

Impact ........................ 50The project would have moderate

Impact ...... .......... .... 100The project would have substantial

Impact ......................... 200

(f) Benefit to low- and moderate-income persons (200 points). Thisfactor will measure the benefit to low-and moderate-income persons. All ap-plicants will be ranked in terms of thepercent of funds benefitting low- andmoderate-income persons. Individualscores will be obtained by dividingeach applicant's percentage by thehighest percentage achieved by anyapplicant and multiplying the resultsby 200.

(g) Performance .in housing andequal opportunity (150 points).-()Housing efforts (100 points). Twentypoints for each of the following crite-rion will be awarded to each applicantthat demonstrates outstanding perfor-mance in:

(i) Providing housing for low- andmoderate-income families located in amanner which provides housingchoices outside of areas of minorityand low-income concentrations;

(ii) Dispersal, by race, in occupancyof its existing assisted housing;

(lii) Meeting Its large family housingassistance needs in relation to thatproportion of need;

(iv) Carrying out housing assistancegoals from previous HAP(s);

(v) Enforcement of a Fair HousingOrdinance.

(2) Local equal employment and en-trepreneurial efforts (50 points). (I)Twenty-five points will be awarded toany applicant that can demonstratethat the percentage of Its contracts,based on dollar value, awarded withinthe past two years to minority owned,controlled, or managed businesses, isgreater than the percentage of minor-ities residing within the county fornonmetropolitan applicants, or withinthe SMSA for metropolitan appli-cants..

(ii) Twenty-five points will be award-ed to any applicant that can demon-strate that its percentage of minorityemployees is greater than the percent-age of minorities within the county fornonmetropolitan applicants, or within

the SMSA for metropolitan appli-cants.

(h) Other (125 points). (1) Twenty.five points will be awarded for each ofthe following criteria effectively ad-dressed by a proposed program which:

(A) Enhances the community's posi-tion as a regional center, economic de-velopment center, or growth center;

(B) Is consistent with and imple-ments a State growth or resource co-ordination plan;

(C) Deals with the impact of otherFederal programs or policies on thecommunity and/or supports anotherFederal program being undertaken inthe community.

(2) Fifty points will be awarded Ifthe applicant is a participating Juris-diction in a HUD-approved HousingOpportunity Plan (50 points). (1) Finalranking. The points received by eachapplicant on the eight rating factorswill be totalled, and the preapplica-tions ranked according to the finalpoint totals. Invitations for full appli-cations will be made based on thisfinal ranking to the extent funds areavailable. HUD may invite additionalapplications on a standby basis in theevent one of the applications from thehigher-ranked applicant Is not ap-proved or additional funds becomeavailable.

§ 570.429 Preapplicatlons for Single Pur-pose Grants.

(a) Submission requirements° Preap-plications shall be submitted on HUDforms to the appropriate HUD AreaOffice and shall consist of the follow-ing:

(1) Standard Form 424, as prescribedby OMB Circular A-102.

(2) A program narrative statementwhich consists of the following:

(I) A brief description of the appli-cant's community development prob-lems/needs to be served by the pro-posed activity(ies) and an identifica-tion of which of the three possibleproblem areas (housing, public facili-ties which affect the health or safety,or economic conditions) that the activ-ity will address;

(i) A description of the activity(ies)to be carried out with assistance underthis Subpart and an estimate of thecost;

(iiI) A statement describing theimpact the activity will have on theidentified problem:

(iv) A statement on the percent offunds requested that Will benefit low-and moderate-income persons. Thestatement should indicate the totalnumber of persons to be served andthe number of such persons that meetthe definition of low and moderateincome.

(v) Other information appropriate torespond to the criteria for selection setforth in § 570.428, particularly Infor-mation on the Performance and OtherFactors.


8486


. (vi) A 6ertificate assuring compliancewith the appropriate citizen participa-tion requirements of § 570.431.

(3) Maps. A map of the applicant'sjurisdiction which identifies by censustract or enumeration district:

(i) the location of the proposed ac-tivities;

(ii) the concentrations of minorities;and

(iii) the concentrations of low- andmoderate-income persons.

(4) If an applicant has received priorassistance under this part, either astatus report addressing the perfor-mance criteria or submission of addi-tional data.

(b) The Grantee PerformanceReport in lieu of the status reportmust be submitted. Only that data re-ceived by the deadline established forpreapplications will be considered inthe selection process unless additionaldata, are specifically requested, in writ-ing, by HUD. Unrequested material re-ceived after the deadline will be re-turned to the applicant.

§ 570.430 Applications for Single PurposeGrants.

(a) Needs assessment and strategy.An applicant with a population of25,000 or more, or which is located inan urbanized area of a Standard Met-ropolitan Statistical Area, must submita summary of a three year communitydevelopment plan which identifies itscommunity development and housingneeds, describes a comprehensivestrategy for meeting .those needs, andspecifies both short- and long-term ob-jectives to be met by the strategy.Such strategies should be developed inaccordance with areawide develop-ment planning and national growthpolicies, and should (1) describe a pro-gram that will eliminate or preventslums, blight or deterioration wheresuch'conditions exist; (2) provide im-proved community facilities and publicimprovements, including the provisionof supporting health, social, and simi-lar services where necessary and ap-propriate and in a, manner to ensurefull participation by and benefit or im-prove conditions for low- and moder-ate-income persons residing in or ex-pected to reside in the community,and (3) foster neighborhood develop-ment in order to induce higher incomepersons-to remain in or return to thecommunity..

(b) Community Development Pro-gram. All applicants, regardless ofpopulation, must, after considerationof appropriate environmental factors,describe the project that will be un-dertaken which includes;

(1) The activity or activities to beundertaken to meet the communitydevelopment needs and objectives;

(2) The estimated cost of each actv-ity; and

(3) Identification of other resourcesthat will be used to address the needsand objectives. _

(c). Housing assistance plan. All ap-plicants, regardless of population, arerequired to submit a Housing Assis-tance Plan. Applicants located withina county which is receiving a commu-nity development block grant maysubmib that county's Housing Assis-tance Plan in lieu of preparing a sepa-rate Plan, if it elects to assume Its fairshare of the housing assistance estab-lished as a goal by the county and Itcan demonstrate in the applicationthat the county's survey of housingconditions and assessment of housingassistance needs have incorporated In-formation for the applicant. An agree-ment between the county and the ap-plicant must be executed which Identi-fies the applicant's fair share of thehousing assistance goals and obligatesthe applicant to assume responsibilityfor its fair share.

(1) Housing needs and goals. (I) Theapplicant shall describe the conditionof the housing stock in the communityby tenure (renter or owner). Estimatesshall be made of the vacancy rates fornon-seasonal, available units in stan-dard condition, using the best estimateat the time the application Is pre-pared, but in no case including units tobe vacant at a future date.

(ii) The applicant shall assess thehousing assistance needs of lower-income households currently residingin the community by tenure and byhousehold type, (elderly and handi-capped, family and non-elderly indi-viduals, and large family), includingany identifiable segment of the totalgroup of lower income households inthe community. Housing assistanceneeds of lower-income households ex-pected to reside shall be assessed in ac-cordance with § 570.306(b)(2)(ll).

(ill) The applicant shall propose a re-alistic goal to address the Identifiedneeds of lower-income households.The goal should specify the number ofdwelling units or persons to be assistedby housing type (new, rehabilitatedand existing units), by tenure, and byhousehold type. The goal should ad-dress relative proportions of need Inso-far as practicable while providing forthe development of feasible projects.The applicant shall describe the ac-tions It plans to take to further fairhousing for minorities and womenpursuant to its assurance under§ 570.307(k)(2).

(2) HUD review of HAP. Where sub-stantial housing needs are Identifiedpursuant to paragraph (c)(1) of thissection, HUD may determine that aHousing Assistance Plan with onlyminimal goals Is plainly inappropriateto meeting the applicant's needs.Housing types (new, rehabilitated orexisting dwelling units) proposed tomeet housing assistance needs shouldbe established In relation to a commu-nity's housing market and should berealistic in terms of estimating the

number and types of units which canbe absorbed by the market within areasonable period of time and providefor a balanced housing market. Anyunits proposed to be included in theHAP as goals for rehabilitation mustmeet, at a minimum, the Section 8 Ex-sting Housing Quality Standards pur-suant to-24 CFR 882.109, upon comple-tion. Weatherization and other similar.activities will not satisfy rehabilitationhousing assistance goals.

(d) Map requirement. Maps must besubmitted which include the followinginformation identified by census tract(or enumeration district, or geographicquadrant of the community wheretracts or enumeration districts areeither not available or include a sub-stantial area, such as an entire com-munity:

(1) Concentrations of low- and mod-erate-income persons;

(2) Concentrations of minority resi-dents;

(3) Locations of community develop-ment activities to be undertaken;

(4) Service areas of the proposed ac-tivities, if applicable;

(5) The median income of the censustracts in which the proposed activitiesare to be undertaken;

(6) Concentrations of substandardhousing; and

(7) General locations for proposednew or rehabilitated housing assis-tance.

(e) Cost analysis. The total cost ofeach activity must be Identified as wellas the amount of Single Purpose grantthat will be used for each activity. Ifthe proposed activity is dependent onother funds for completion, the sourceof funds and the status of the commit-ment must also be indicated.

(f) Title VI compliance All appli-cants, except those currently receivinga hold-harmless grant, are required tosubmit, in a form to be provided byHUD. evidence of compliance withTitle VI of the Civil Rights Act of1964. The purpose of the evidence is toenable HUD to determine whether thebenefits to be provided will be on anon-discriminatory basis and willachieve the purposes of the programfor all persons, regardless of race,color, or national origin.

(g) Certificates of assurance. Thecertificates required by § 570.307 ofSubpart D shall be submitted by allsingle purpose applicants.

§ 570.431 Citizen participation require-ments for single purpose grants.

(a) General Each applicant for' aSingle Purpose Grant shall providecitizens with an adequate opportunity -

to participate In the planning, imple-mentation and assessment of the pro-gram. To achieve these goals, each ap-plicant must prepare and follow awritten citizen participation plan thatmeets the requirements set forth in


8487


this sectioli. Nothing *n these require-ments, however, shall be construed torestrict the responsibility and author-ity of the applicant for the develop-ment of the application and the execu-tion of the Community DevelopmentProgram.

(b) Scope of citizen participation.Citizen participation shall include in-volvement in:

(1) The determination of priorities,the development of the community de-velopment and housing strategy andthe Housing Assistance Plan;

(2) Subsequent amendments to theCommunity Development Programand the Housing Assistance Plan; and

(3) The process of planning, imple.menting and assessing the CommunityDevelopment Program and perfor-mance.

(c) Citizen participation plan. Eachapplicant for a Single Purpose Grantmust prepare and follow a written citi-zen participation plan that describesthe method by which the followingcriteria will be met:

(1) The views and proposals of citi-zens, particularly low- and moderate-income persons, members of minoritygroups, and residents of blighted areasand neighborhoods where activitiesare proposed or ongoing, shall be solic-ited and responded to in a timelymanner.

(2) Adequate notices of public hear-ings shall be provided in a timelymanner so as to make them accessibleand understandable to all citizens, in-cluding non-English speaking persons.The plan shall specify the number ofdays prior to hearings that notices willbe made available.

(3) Hearings to obtain citizen viewsand to respond to citizen proposals willbe scheduled at times and locationswhich permit broad participation, pat-ticularly by low- and moderate-ncomepersons and residents of blightedneighborhoods and project areas.

(4) Citizens shall be involved in thedevelopment of both the preapplica-tion and application.

(5) Full public access to program in-formation and affirmative efforts toget adequate information to citizensshall be provided, particularly for per-sons of low- and moderate-income andresidents of blighted neighborhoodsand project areas.

(6) Citizens shall be involved inamendments, budget revisions andchanges to the Community Develop-ment Program andithe Housing Assis-tance Plan.

(7) Citizens shall be involved in plan-ning, implementing and assessing theCommunity Development Programand performance.

(8) Low- and moderate-income per-sons and minorities will be ensuredsubstantial representation in an advi-sory committee, if one has been cre-ated.

(9) Bilingual opportunities will beprovided at public hearings, when nec-essary.The plan must be written and avail-able prior to undertaking any of theabove.

(d) Requirements for citizen partici-pation in each stage of the applicationprocess:

(1) Preapplication stage. (i) Prior tothe preparation of the preapplication,the applicant shall, in accordance withthe written plan, make available thefollowing information:

(A) The total amount of Single Pur-pose funds to be applied for by the ap-plicant for community development;

(B) The range of activities that maybe undertaken with these funds, thekind of activities previously funded inthe community (if applicable) and theprogress made with respect to theseactivities;

(C) The fact that more preapplica-tions will be submitted to HUD thancan be funded;

(D) The processes to be followed insoliciting and responding to the viewsand proposals of citizens in a timelymanner;, and

(E) A summary of other importantprogram requirements.

(i) Prior to the required public hear-ings, the applicant shall provide foradequate public notices of the hear-ings in accordance with paragraph(cX2) of this section.

(iii) Prior to the actual preparationof the preapplication, hearings shallbe held to obtain the views and pro-posals of citizens with regard to thedetermination of priorities and com-munity development and housingneeds.

(iv) A certificate of assurance shallbe submitted with the preapplicationassuring that all appropriate require-ments have been met.

(2) Application stage. Prior to thesubmission of the full application, theapplicant shall, in accordance with thewritten plan:

(i) Assure that citizen participationhas taken place with regard to the de-termination of prioritls and commu-nity development and housing needs;

(iD Provide adequate notices ofpublic hearings In accordance withparagraph (c)(2) of this section; and

(ill) Hold hearings on the proposedapplication before adoption of a reso-lution or similar action by the localgoverning body authorizing the filingof the application.

(3) Post approval stage. Followingthe approval of its application, thegrantee shall, in accordance with thewritten plan:

(i) Assure citizen participation whenconsidering subsequent amendmentsto the Community Development Pro-gram and the Housing AssistancePlan; and

(ii) Provide for citizen participationin the planning, implementation and

assessment of the Community Devel-opment Program including the devel-opment of the Grantee PerformanceReport and the submission of views tothe Area Office.

§ 570.432 Single Purpose Grants for fiml-nent threat to public health or safety.

(a) Criteria. The following criteriafor an imminent threat to publichealth or safety shall apply:

(1) Notwithstanding the provisionsof § 570.428, the Area Manager may, atany time, invite a full application forfunds available under this Subpart Inresponse to a request foe assistance toalleviate an imminent threat to publichealth or safety that requires Immedi-ate resolution by waiving the require-ments for preapplications. The urgen-cy and the Immediacy of the threatshall be verified by HUD with an ap-propriate authority other than the ap-plicant prior to submission of the fullapplication, and the Area Managerwill review the claim to determine f,in fact, an imminent .threat to publichealth or safety does exist. For exam-ple, an applicant with documentedcases of disease resulting from a con-taminated drinking water supplywould have an Imminent threat topublic health, while an applicant or-dered to Improve the quality of itsdrinking water supply over the nexttwo years would not have an Imminentthreat within the definition of thisparagraph. These funds are to be usedto deal with those threats which rep-resent a unique and unusual circum-stance, not for the type of threat thatoccurs with frequency in a number ofcommunities within a state. ,

(2) The applicant does not have suf-ficient local resources and other Fed-eral or state resources are unavailableto alleviate the imminent threat.

(b) HUD action. (1) Each AreaOffice Manager is authorized to re-serve up to 15 percent of the funds al-located pursuant to Subpart B and as-.signed to the Area Offices for SmallCities Grants in metropolitan andnonmetropolitan areas for use in fund-ing full applications to alleviate immi-nent threats to the public health orsafety. Funds reserved shall be consid-ered a part of the percentage of fundsavailable for Single Purpose Grants,The 15 percent limit may be appliedseparately to the metropolitan andnonmetropolitan balances. Full appli-cations shall be submitted In accor-dance with § 570.430.

(2) The only funds to be reserved forImminent threats to the public healthand safety are those set aside by theArea Manager. After these funds havebeen depleted, no further applicationsrelating to imminent threat shall beconsidered during that fiscal year.

(c) Waiver of A-95 requirements. Therequirements for A-95 review and com-ment pursuant to § 570.435(c) may be


8488


waived in the case of an imminentthreat. HEUD shall notify the appropri-ate state and areawide A-95 clearing-houses that it-is inviting a full applica-tion for an imminent threat from anapplicant.(d) Letter to proceed The Secretary

may issue the applicant a letter to pro-ceed to incur costs to alleviate the Im-minent threat provided all environ-mental reviews are completed pursu-ant to 24 CFR Part 58.

§ 570.433 HUD review and actions on fullapplications for Single Purpose andComprehensive Grant.

(a) Full application& Only applica-tions from communities that havebeen invited to submit a full applica-tion will be accepted for review, andthen only if: (1) It has been receivedbefore the deadline that has. been es-tablished; (2) the application require-ments are complete; (3) the funds re-quested do not exceed the amount ofthe invitation by HUD, unless a higheramount is acceptable to EU]); (4) theactivities are essentially the same as.those for which a full application wasinvited; (5) and any comments receivedfrom the clearinghouses are dttachedto the application or a statement in-

-cluded that no comments were re-ceived, with: a copy of the letter trans-mitting the application to theclearinghouse.

(b) HUD action on full applica-tions.-() Review and notification"While HEUD is not required to reviewdiscretionary applications within 75days, it will try to do so. Applicationswill be reviewed to ensure that anyother resources that may be requiredare, in fact, available; and that anyconditions that were established at thetime of invitation have been satisfied.Following the review, HU] willpromptly notify the applicant of theactions taken with regard to its appli-cation.

(2) Conditienal approval. The Secre-tary may make a condtibnal approvalin which case the grant will be ap-proved, but the use of funds yill be re-stricted. Conditional approvals may bemade pursuant to §570.311(f) or toinsure that (I) actual provision ofother resources required to- completethe proposed activities will be avail-able within a reasonable period oftim;" (ii) the project can be completedwithin estimated .costs; (iii) or untilsite and neighborhood standards ap-proval has been obtained for proposedhousing projects, if applicable.

(3) Disapproval of afull application.The Secretary may disapprove a fullapplication for the reasons set forth in-§ 570.311(c). In addition, full applica-tions may be disapproved for any ofthe following reasons:

(i) The conditions established at thetime of invitation have not been fullymet;

(l) Othe resources necessary forthe completion of the proposed activ-ity are no longer available or will notbe available within a reasonable periodof time;

(Ill) The activities cannot be com-pleted within the estimated costs orresources available to the applicant;

(lv) There is new evidence of a lackof capacity of a recipient to carry outthe proposed activities;

(v) The applicant has received otherfunds for the activities and assistanceunder this Subpart is no longer re-quired.

(4) Letter to proceed. HUD will Issuea letter authorizing an applicant toincur costs for the planning and prep-aration of an application for fundsavailable under this Subpart, Includ-ing citizen participation and environ-mental studies. Reimbursement forsuch costs will be dependent uponHUD approval of the application.Only those costs associated with theactual cost of preparation of the appli-cation may be assisted. In no instancesmay a planning or preparation fee bereimbursed. when It Is based upon apercentage of the assistance receivedunder this subpart and such fees shallcomply with the requirements setforth in § 570.200. Costs incurred by anapplicant prior to notification of afunding approval or issuance of aletter to proceed by HU are not eligi-ble for assistance under this part.

§ 570.434 Program amendments for SinglePurpose and Comprehensive Grants;

(a) HiU] will consider amendmentsif they .are necessitated by actionsbeyond the control of the applicant.Recipients shall request prior HU)approval for all program amendmentsinvolving new activities or significantalteration of existing activities thatwill change the scope, location, objec-tives or scale of the approved activitiesor beneficiaries. Approval will be sub-ject to the following:.

(1) New or significantly altered ac-tivities will be rated In accordancewith the criteria for selection applic4-ble at the time the original preapplica-tion was rated. The rating of the newprogram or activity proposed by theamendment must be equal to or great-er than the lowest rating received by afunded activity or program duringthat cycle of preapplication ratings.

(2) Consideration shall he given towhether any new activity proposedcan be completed promptly.

(b) Housing Assistance Plan Amend-ments.

(1) Comprehensive Grant. Recipientsshall request prior HU approval inaccordance with § 570.312(b).

(2) Single Purpose Grant. Recipientsshall request prior HU] approvalwhen any of the following conditionsexist:

(i) The recipient proposes an in-crease or decrease of any goal by hous-ing type or household type;

(1i) The recipient proposes a revision,of general locations for assisted hous-ing.

(c) A-95 and citizen participation re-quirement. Whenever an amendmentrequires HU]) approval, the require-ments of this Subpart for A-95 reviewand citizen participation must be met,and the recipient shall provide all ap-propriate State and areawide A-95clearinghouses with thirty days inwhich to review and comment on theproposed amendment prior to its sub-mission to HUD.

§ 570.435 Modified 0MB Circular No. A-95 procedures for the Small Cities Pro-gram.

(a) GeneraL (1) Applicants forgrants (both Single Purpose and Com-prehensive) under the Small CitiesProgram must comply with all of theprocedures set forth in Part I of OMBCircular No. A-95 except as modifiedbelow. These procedures also requirethat program. amendments whichmust receive HUD approval shall besubmitted for a thirty day review andcomment period prior to submission toHUD pursuant to 24 CFR 52.101(g).

(2) All applicants are urged to con-tact their A-95 clearinghouses forforms and- instructions which theclearinghouses have developed to fa-citate their reviews.

(3) Clearinghouses will be of assis-tance to the applicant and to EIUD iftheir reviews address the appropriateperformance factors (§ 570.423(c)), thecriteria for selection for the Compre-hensive Program (§ 570.424), and thecriteria for selection for the SinglePurpose Program (§ 570.428). as well asthe "subject matter of comments andrecommendations" in item 5, Part I.Attachment A of OMB Circular No. A-95, with emphasis on consistency withState, areawide and local plans andcompliance with environmental andcivil rights laws.

(b) A-95 procedures for preapplica-tions Preapplications for either Com-prehensive Grants or for Single Pur-pose Grants shall be submitted to theappropriate State and areawide A-95clearinghouses prior to or concurrentwith the submission of the preapplica-tion to HUD to serve as the notifica-tion of intent to apply for a'Federalgrant. The clearinghouses shall havethirty days from receipt of the preap-plicatlon in which to conduct theirreview and provide a response to theapplicant with a copy to RUD. Theclearinghouse must clearly identifythe applicant and the activity or pro-gram to which the comments are ad-dressed. HUD shall not make a finalrating on a preapplication until allclearinghouse comments are consid-ered. or if no clearinghouse commentsare received by HUD, thirty days afterthe deadline for submission of preap-plications. Applicants are urged to pro-

FEDERAL REGISTER, VOL 43, NO. 41-WEDUESDAY, MARCH 1, 1978

8489


vide preapplications to the clearing-houses prior to submission to HUDwhenever possible.

(c) A-95 procedures for full applica-tions. (1) Applications shall be submit-ted to the appropriate State andareawide A-95 clearinghouses prior toor concurrently with submission toHUD. The clearinghouses shall haveforty-five days from receipt of the ap-plication to review the application andgive the comments to 1UD and theapplicant.

(2) HUD will not take any finalaction on the application until com-ments have been received or untilforty-five days after the applicationwas sent to the clearinghouse. The ap-plicant will be provided an opportuni-ty to respond to clearinghouse com-ments before HUD takes final actionon an application.

(3) If the A-95 comments containany findings of inconsistency withState, areawide or local plans, or non-compliance with civil rights laws, theapplicant must explain why it shouldproceed with the project.

(2) In § 570.400, paragraphs (b),(f)(1)(i), and (g) are revised to read asfollows:

§ 570.400 General.

* * * * *

(b) Data. Wherever data are used inthis Subpart for selecting applicantsfor assistance, the source of such datashall be the materials that HUD ac-quires from the United States Bureauof Census for use in allocating fundspursuant to Subpart B of this part forthe same fiscal year appropriation.

* * * * *

(f) * * *(1) * *(i) The application is postmarked or

received on or before the final date es-

tablished by HUD for submission ofapplications for each fiscal year.

(g) Program amendments. Recipientsshall request prior HUD approval forprogram amendments whenever theamendment results from changes inthe scope or the objective of the ap-proved program.

(9) In § 570.409(e)(2) the reference to"§§ 570.300(b)(1) and 570.402" Ischanged to "Subpart F".

§ 570.503 [Amended]. (10) In § 570.503(a), the reference to"570.402(d)(5)(ii)" Is changed to§ 570.433(b)(2)."

* * * * * § 570.504 [Amended]

(3) Section § 570.402 is cancelled andreserved for future use.

§ 570.402 [Reserved]

(4) In § 570.409, paragraph (d)(1)-(i)(c) is revised to read as follows:

§ 570.409 Reallocated funds.

* * * * *

(d) * * *(1) * * *(i) * * *

(c) If reallocated funds are availableafter meeting the urgent needs in allmetropolitan areas in that State, tothe same metropolitan area or othermetropolitan areas in the same Statefor use in accordance with the provi-sions of Subpart F; and

* * * * *

(5) In § 570.409(d)(1)(ii)(B), the ref-erence to "§ 570.402" is changed to"subpart F".

(6) In 570.409(d)(2), the reference to"§ 570.400(b)(1) and § 570.402" ischanged to "Subpart F"'.

(7) In 570.409(e) the phrase "the cri-teria for selection described in§ 570.402(b)" is changed to "Subpart

(8) In § 570.109(e)(1)(i) (A) and (B)the references to "§ 570.402(a)" arechanged to "§ 570.420(c)".

(11) In § 570.504, the reference to"§570.402(d)(5)(iii)" is changed to"§ 570.433(b)(2)."

(12) In § 570.910, a new paragraph(b)(11) is added to read as follows:

§ 570.910 CorrectIve and remedial action.

* * * 5 *

(b) * * *

(11) In the case of discretionarygrants made under Subpart F, adjust,reduce or withdraw the grant, exceptfor funds already expended on other-wise eligible activities which may notbe recaptured or deducted from futuregrants.

S *

(Title I, Housing and Community Develop.ment Act of 1974 (42 U.S.C. 5301 et ceq.);Title I, Housing and Community Develop.ment Act of 1977 (Pub. L. 95-128); and Sec.7(d), Department of Housing and Urban de-velopment Act (42 U.S.C. 3535(d)).)

Issued at Washington, D.C. Febru-ary 22, 1978.

ROBERT C. EMBRY, Jr.Assistant Secretary for Commu.

nity Planning and Develop-ment.

[FR Doc. 78-5181 Filed 2-23-78: 2:24 am]


8490

WEDNESDAY, MARCH 1, 1978PART VI

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LOANS FORHOUSING THE

ELDERLY ORHANDICAPPED

DEPARTMENTOF HOUSINGAND URBAN

DEVELOPMENT


[4210-01]


CHAPTER VIt-LOW INCOME HOUSING, DE-PARTMENT OF HOUSING AND UR5AN DE-VELOPMENT

Docket No. R-78-3221

PART 88S-LOANS FOR HOUSING THE,ELDERLY OR HANDICAPPED


ACTION: Final rule.

SUMMARY: This regulation estab-lishes substantive provisions and pro-cedural requirements governing oper-ation of the section 202 direct loanprogram for housing for the elderly orthe handicapped. This final rule de-centralizes the responsibility for re-serving section 202 loan fund author-ity to HUD Field Offices, consolidatessection 202 and section 8 processing,and revises the criteria to be used inselecting Borrowers to receive FundReservations.

EFFECTIVE DATE: March 31, 1978.


George 0. Hlpps, Jr., Director,Office of Loan Origination, Depart-ment of Housing and Urban Devel-opment, Washington, D.C. 20410.

SUPPLEMENTARY INFORMATION:The Department of Housing andUrban Development (HUD) publishedon February 25, 1976, at 41 FR 8314, afinal rule amending Title 24, Part 885,to provide a program of direct loan fi-nancirg for projects for the elderly orhandicapped pursuant to section 202of the Housing Act of 1959, as amend-ed (12 USC 1701q). Subsequent to pub-lication of that final rule, the HousingAuthorization Act of 1976, Pub. L. 94-375, was enacted on August 3, 1976,making certain changes in the provi-sious of section 202, pursuant to whichthe Department published a final ruleamending Part 885 on January .28,1977 (42 FR 5568).

On January 31, 1977, the Depart-ment gave notice, at 42 FR 5924, thatit proposed to amend 24 CFR Part 885to decentralize the authority for re-serving section 202 loan fund author-ity to HUD field offices, partially con-solidate section 202 and section 8 ap-plication and review procedures andrevise the criteria to be used in select-ing Borrowers to receive fund reserva-tions. These changes were originallyintended to be applicable to section202 loan commitments made duringFiscal Year 197-7. However, in order toassure that Fiscal Year 1977 section202 loan funds made available by theCongress would be obligated beforethe end of that Fiscal Year and thusnot lapse, HUD elected to follow the

procedures prescribed in the final rulepublished on February 25, 1976 at 41FR 8314, as amended on January 28,1977 at 42 FR 5568, for section 202loan commitments made during FiscalYear 1977.

The period for receipt of commentson the proposed rule closed on Febru-ary 24, 1977. The Department received47 responses from 45 sources, includ-ing four memoranda from HUD fieldoffices. All comments were carefullyconsidered. The most recurrent andsignificant comments, and the changesfrom the proposed rule, are discussedbelow:

1. Twenty respondents addressed thebasic decentralization question, ofwhich 17 favored decentralization (in-cluding three who would have pre-fered decentralization only to the Re-gional Offices) while only three notedopposition. The Department has -de-cided to decentralize program author-ity and responsibility to field offices.

2. On the issue of priority for pro-jects using section 8 assistance in lessthan 80 percent of the units, publiccomments were overwhelmingly nega-tive, and that proposed preference hasbeen dropped from the final rule.

3. During the comment period,twelve respondents objected to contin-ued use of the section 231 mortgagelimits. In addition, section 202(a) ofthe Housing and Community Develop-ment Act of 1977, Pub. L. 95-128,signed October 12, 1977, amended sec-tion 202 of the Housing Act of 1959 toprohibit use of section 231 mortgagelimits to section 202 projects. There-fore, the Department published at 42FR 57439, November 2, 1977, new costlimits specifically tailored for the sec-tion 202 program. With minor clarify-ing changes, the amended section:885.410 is incorporated in this finalrule.

4. Among the 47 responses to theproposed rule, only sixteen comment-ed specifically on the proposed re-quirement for site control contained in§ 885.230(c) of the Proposed Rule, andthese responses were divided: sponsorsand potential sponsors preferred notto take the financial risks associatedwith obtaining control of a buildingsite, while certain other respondentsfavored the resultant faster processingand earlier availability of new housingunits. It is the Department's judgmentthat the advantages of the site controlrequirement-greater predictability inthe distribution of housing resources,increased ability to meet local HAP re-quirements, increased administrativeefficiency, and speedier delivery ofhousing to those in need-significantlyoutweigh Sponsors' interest in mini-mizing the financial risk inherent inthe application process. The Depart-ment has decided to implement theproposed rule's requirement that evi-dence of site control be included as a

condition of application for a reserva-tion of funds under section 202, andthe list of exhibits required In the ap.plication (formerly containcd in§§ 885.225 and 885.230 of the proposedrule and, subzzquently dcscribed in§ 885.210 of this final rule) shall in-clude documentary evidence of ditecontrol, except in the case of Borrow-ers contemplating projects for thenonelderly handicapped. In the cme ofBorrowers submitting applications forfund reservations for projects whollyor primarily for the non-elderly handi-capped, documentary evidence of sitecontrol shall not be required as a partof the application for fund reserva-tion, except that, for simplicity andexpediency in processing applicationsand developing new housing resources,applications for such projects whichIdentify a specific site which is suit-able for construction of such a projectand under the control of the Borrowercorporation shall be deemed prefer-able to proposals which are not site-specific. In all cases, such applicants,as a minimum, must Identify the local-ity in which they propose to developthe housing project, Also In the inter-est of expeditious processing andprompt availability of additional hous-ing resources, the Department doesnot contemplate extensions of thefund reservations, beyond those al-ready provided in § 885.230 of thisfinal rule, for borrowers whose appli-cations are approved prior to identifi-cation of a proposed site.

5. Six respondents objected to theproposed shortening of the period be-tween fund reservations and start ofconstruction from 18 to 12 months.The final rule requires that construc-tion or substantial rehabilitation beginwithin 18 months after the date of thereservation of funds, unless an exten.sion of time not to exceed six (6)months is approved by the FieldOffice Director.

6. Various other issues were raised inthe public comments. These were gen-erally either in favor of the proposedrule and/or the continuation of thesection 202 program, or were limitedto specific cases and have not requiredadditional changes from the January31 Proposed Rule.

Consistent with President Carter'sdirectives requiring that regulationsbe simplified wherever possible, anddirectives contained In the Housingand Community Development Act of1977 concerning simplified procedures,this final rule has been shortened andsimplified, compared to the January31 proposed rule, by, eliminating thecross-references to sections 880 and881 of this chapter, and by incorporat-ing the section 8 application require-ments formerly contained in§§ 885.230, 885.300, and 885.400 of theproposed rule. By so incorporating thesection 8 application requirements,


8492


these regulations assure that projectapplications which meet the require-ments of the section 202 program shallhave met the requirements for hous-ing assistance payments under the sec-tion 8 Housing Assistance Paymentsprogram as provided in the U.S. Hous-ing Act of 1937, as amended.

The Department has determinedthat this Final rule will not have a sig-nificant impact upon the quality ofthe environment. A Finding of Inap-plicability with respect to the NationalEnvironmental Policy Act of 1969 hasbeen made in accordance with HDprocedures. A Finding of Inapplicabil-ity wilLlbe available for public inspec-tion during regular business hours inthe-Office of the Rules Docket Clerk,Office of the Secretary, Room 5218,Department of Housing and UrbanDevelopment, Washington, D.C. 20410.

It is hereby certified that the eco-nomic and inflationary impacts of thisfinal rule have been carefully evaluat-ed in. accordance with-Executive Order11821.

Accordingly, 24 CFR Part 885 isamended to read as follows:

PART 885--LOANS FOR HOUSING FOR THEELDERLY OR HANDICAPPED

Subpart A-General Policy

Sec.885.1 Purpose and policy.885.5 Definitions.

Subpart B-Allocations of Loan Funds and Pro-cessing Applications for Section 202 FundReservations

885.200 Allocation of loan fund authority.885.205 Announcement of fund availability

and invitations for applications for sec-tion 202 fund reservations.

885.210 Contents of applications.885.215 Timitation on number of units.885.220 Application for fund reservation.885.225 Approval of applications.885.230 Duration of section 202 fund reser-

vations.

Subpart C.-[Reserved]

Subpart D-Direct Loan Financing Procedures

885.400 Requests for direct loan financin.885.405 Approval of requests for financing.885.410 Amount and terms of financing.885.415 Requirements prior to initial loan

closing.885.420 Loan disbursement procedures.885.425 Completion of construction or sub-

stantial rehabilitation, cost certificationand approvals by HUD.

Au ornrr. Sec. 7(d), Department ofHousing and Urban Development Act (42U.S.C. 3535(d)).

Subpart A-General Policy

§ 885.1 Purpose and policy.(a) Purpose. The purpose of the pro-

gram described in this Part is to pro-vide direct Federal loans under section202 of the Housing Act of 1959. asamended, 12 U.S.C., 1701q, for housingprojects to serve elderly or handi-

-capped families and individuals. Thehousing projects shall provide the nec-essary services for the occupants,which may include, among others,health, continuing education, welfare,informational, recreational, homemak-er, counseling, and referral services, aswell as.transportation where necessaryto facilitate access to these services.The management plans shall addressmanagement and maintenance respon-sibilities of the Borrower as well as thedelivery of necessary services for theoccupants.

(b) General Policy. A loan made pur-suant to this Part shall be used to fi-nance the construction or substantialrehabilitation of residential projectsfor the elderly or the handicapped.Consistent with Congressional direc-tives stated in the Housing and Com-munity Development Act of 1977,these regulations have been developedto consolidate the application require-ments of both Section 202 and Section8. Therefore, projects which meet therequirements of the Section 202 pro-gram shall be deemed to have met therequirements for housing assistancepayments under the Section 8 HousingAssistance Payments Program as pro-vided in the U.S. Housing Act of 1937,as amended.

§ 885.5 Definitions.As used in this part,,Act means section 202 of the Hous-

ing Act of 1959, as amended, 12 UBS.C.1701q.

Affiliated Entities means entitiesthat the field office determines to berelated to each other in such a mannerthat it is appropriate to treat them asa single entity. Such relationship shallinclude any identity of interest amongsuch entities or their principals andthe use by any otherwise unaffiliatedentities of a single Borrower or of Bor-rowers that have any Identity of inter-est between themselves or their princi-pals.

Application means the applicationfor a Section 202 Fund Reservation.including all required forms and ex-hibits submitted in response to an In-vitation for such applications.

Assistant Secretary means the Assis-tant Secretary for Housing-FederalHousing Commissioner.

Borrower means a private nonprofitcorporation or a nonprofit consumercooperative which may be establishedby the Sponsor, which will obtain asection 202 loan and execute a mort-gage in connection therewith as thelegal owner of the project. "Borrower"does not mean a public body or the In-strumentality of a public body. Thepurposes of the Borrower must includethe promotion of the welfare of elder-ly and/or handicapped families. Nopart of the net-earnings of the Bor-rower may inure to the benefit of anyprivate shareholder, contributor or in-

dividual and the Borrower may not becontrolled by or be under the directionof persons or firms seeking to deriveprofit or gain therefrom.

Construction means the erection orsubstantial rehabilitation of structuresfor Housing and Related Facilities.

Development Cost means the cost ofconstruction or substantial rehabilita-tion of Housing and Related Facilities,and of the land on which they are lo-cated, including necessary site im-provements and such other expensesas may be determined by the AssistantSecretary to be properly attributableto the capital cost of the constructionor substantial rehabilitation or devel-opment of the Housing and RelatedFacilities.

Elderly or Handicapped Familymeans

(a) Families of two or more personsthe head of which (or his or her-spouse) is 62 years of age or over or ishandicapped, or

(b) The surviving member or mem-bers of any family described in para-graph (a) living in a unit assisted-under the section 202 program withthe deceased member of the family at,the time of his or her death.(c) A single person who is 62 years of

age or over, or a non-elderly handi-capped person between the ages of 18and 62 or

(d) Two or more elderly or handi-capped persons living together, or oneor more such persons living with an-other person who is determined byHUD, based upon a licensed physi-cian's certification provided by thetenant family or prospective tenantfamily, to be essential to their care orwell-being.

Field Office means any HD Area,Insuring, or Regional Office which isdelegated authority to process applica-tions under the section 202 and section8 programs.

Handicapped Person means anyadult having an impairment which isexpected to be of long-continued andindefinite duration, Is a substantial im-pediment to his or her ability to liveindependently, and is of a nature thatsuch ability could be improved bymore suitable housing conditions. Aperson also shall be considered handi-capped if he or she is developmentallydisabled, I.e., if he or she has a disabil-ity attributable to mental retardation,cerebral palsy, epilepsy, or anotherneurological condition found by theSecretary of Health, Education, andWelfare to be closely related to mentalretardation or to require treatmentsimilar to that required for mentallyretarded individuals, which disabilityoriginates before such individual at-tains age eighteen, which constitutes asubstantial handicap to such individ-ual.

Housing and Related Facilitiesmeans rental or cooperative housing


8493


structures constructed or substantiallyrehabilitated as permanent residencesfor use by elderly or handicapped fam-ilies and includes structures suitablefor use by families residing in the pro-Ject or in the area such as cafeterias ordining halls, community rooms orbuildings, and workshops or other es-sential service facilities. "Housing andRelated Facilities" does not includenursing homes, hospitals or intermedi-ate and transitional care facilities.

Invitation means the Invitation forApplications for section 202 Fund Res-

-ervations issued by a field office anddescribed in § 885.205(c), below.

Region means any one of the tenHUD Regions.

Request means the Request forDirect Loan Financing and all re-quired forms and exhibits submittedby a Borrower for whom a section 202Fund Reservation has been approved.

Section 8 Program means the Hous-ing Assistance Payments Program-NewConstruction or Substantial Rehabili-tation as defined in Parts 880 and 881of this Chapter, which implementssection 8 of the U.S. Housing Act of1937, as amended.

Seed Money Expenses mean those ex-penses which are necessary to coverthe costs of planning and obtaining fi-nancing for a section 202 project andwhich will be incurred prior to the ini-tial closing of the construction loanfor the project.

Sponsor means any private nonprof-It entity, no part of the net earnings ofwhich inures to the benefit of any pri-vate shareholder, contributor or indi-vidual, which entity is not controlledoy, or under the direction of personsor firms seeking to derive profit orgain therefrom, and which is approvedby the Field Office Director as to ad-ministrative and financial capacityand responsibilitY. "Sponsor" does notmean a public body or the instrumen-tality of a public body.

Substantial Rehabilitation meansthe improvement of the condition of aproperty from deteriorated and sub-standard to good condition. Substan-dard or deteriorated properties arethose which do not provide safe andadequate shelter, and in their presentcondition endanger the health, safetyor well-being of the occupants. Sub-stantial Rehabilitation also includesrenovation, alteration or remodelingfor the conversion or adaptation ofproperty to the design and conditionrequired for use under this part.

Subpart B-Allocation of Loan Funds and Pro-cossing Applications for Section 202 FundRosorvations

§ 885.200 Allocation of Loan Fund Au-thority.

(a) Section 202 loan fund authoritywill be allocated by the Assistant Sec-retary to HUD field offices in accor-

dance with the requirements of sec-tion 213(d) of the Housing and Com-munity Development Act of 1974 asset forth In '24 CPR 891.402 and891.403.

(b) Field Office Directors will deter-mine the amount of section 202 loanfund authority to be allocated to eachallocation area in accordance with 24CFR 891.404. In determining thenumber of units for housing for the el-derly and/or handicapped to be allo-cated to a specific allocation area, theField Office Director must considerthe three-year goals set forth in Hous-ing Assistance Plans and the propor-tionality requirements with respect tohousing type and household type withthe objective of achieving the propor-tionality by household type estab-lished In the first three-year goal bythe end of Fiscal Year 1979. Whereloan fund authority allocated to an al-location area would not be adequatefor a feasible project the Field OfficeDirector may either: (1) combine allo-cation areas, or (2) distribute suffi-cient loan fund authority for a feasi-ble project and withhold future alloca-tions until such advance is compensat-ed.

(c) Field Office Directors will setaside sufficient contract authority forthe Section 8 Housing Assistance Pay-ments Program for use in connectionwith projects to be financed underSection 202.

§ 885.205 Announcement of Fund Avail-ability and Invitations for Applicationsfor Section 202 Fund Reservations.

(a) Promptly upon determining theamount of loan fund authority to beallocated to each field office, the As-sistant Secretary shall publish an An-nouncement of Fund Availability inthe F EDRAL REGtSTER indicating:

(1) The amount of lending authority(and approximate number of units)being made available to each fieldoffice;

(2) The date by which the field of-fices will publish Invitations for Appli-cations for section 202 Fund Reserva-tions;

(3) The earliest date applicationswill be accepted for-processing and theclosing date; and

(4) Other appropriate guidance toprospective borrowers.

(b) Each field office shall publish asingle Invitation in newspapers of gen-eral circulation serving the allocationareas in which the housing is desiredat least once a week for two consecu-tive weeks. The field office shall alsonotify minority media, minority orga-nizations involved in housing and com-munity development, and groups withspecial interest in housing for the el-derly and/or handicapped. Copies ofthe Invitation shall be available in thefield office.

(c) The Invitation shall state:

(1) The designated allocation areaswhere loan fund authority is beingmade available, the amount of suchauthority and the approximatenumber of units this amount is expect-ed to =vsist.

(2) That applications from the desig-nated allocation areas will be evaluat-ed first, and that only in the eventthat an Insufficient number of approv-able applications are received from thedesignated allocation areas will appli-cations from other areas be consideredfor approval.

(3) That, notwithstanding subpara-graph (c)(2) above, applications forhousing designed wholly for the nonel-derly disabled or handicapped fromany allocation area will be acceptedand evaluated.

(4) That copies of the applicable reg-ulations, instructions, forms and otherprogram information may be obtainedat the field office.

(5) The date, time, and place applica.tions will be accepted.

(6) The deadline date for receipt ofapplications.

§ 885.210 Contents of application.Each application shall include all of

the information, materials, forms, andexhibits enumerated below, on thebasis of which the field office will de-termine the Borrower's eligibility for areservation of section 202 loan fundsand for participation In the section 8housing assistance payments program.The same information requested ofthe Borrower in items 10-22, below,must be provided for each SponsorIdentified in the application.

(1) The name, address, and tele-phone number of the Borrower andalso of the Sponsor (if any).

(2) The name, title, address, andtelephone number of the officer ormember of the Board of Directors ofthe Borrower to whom communica-tions should be addressed.

(3) The following specific informa-tion regarding the application:

(a) Number of section 202 units re-quested.

(b) Number of units for which sec-tion 8 Assistance is requested. Section8 Housing Assistance Payments are re-quired for a minimum of 20 percent ofthe section 202 units in any project.Applications contemplating use of sec-tion 8 contract authority in less than100 percent of the rental dwellingunits must demonstrate that sufficientmarket demand is anticipated for theunsubsidized units to assure the feasi-bility of the project.

(c) Dollar amount of section 202direct loan requested.

(4) A narrative description of theproposed housing, including: (a)number and types of structures; (b)number of stories; (c) number of unitsby size (number of bedrooms); (d) spe-cial amenities or features.

FEDrRAL REGISTER, VOL 43, NO.- 41-WDNESDAY, MARCH 1, 1978

8494


(5) A narrative description of the an-ticipated occupancy (elderly and/orhandicapped Ephysicially handicappedor developmentally disabled, Le., men-tally retarded, cerebral palsy, or epi-lepsy]).

(6) A statement as to whether theBorrower (and/or Sponsor) has sub-mitted or is planning to submit an ap-plication to any other field office inresponse to the current Invitation. Ifso, indicate the city and state wherethe proposed project is to be located,the number of units requested, andthe field office to which the proposalwas or will be submitted.

(7) A signed certification of the Bor-rower's intention to comply with TitleVI of the Civil Rights Act of 1964,Title VIII of the Civil Rights Act of1968, Executive Order 11063. Execu-tive Order 11246, and section 3 of theHousing and Urban Development Actof 1968.

(8) A Housing Consultant's Certifi-cate and Contract (if consultant ser-vices have been employed by the Bor-rower).

(9) Evidence of the Borrower's legalstatus as a nonprofit corporation.

(10) A Request for Preliminary De-termination of Eligibility as a Non-profit Sponsor and/or Mortgagor on aform prescribed by HUD.

(11) A statement evidencing the Bor-rower's ties to the community and sup-port from local community groups.

(12) The names and addresses of theofficers and directors of the Borrower,and such other information as shall berequired on the prescribed form, to-gether with a certification by each of-ficer or director that he or she will notreceive any compensation from theBorrower for his or her services, anddoes not have any financial interest inany contract with the Borrower, or inany firm or corporation which has acontract with the Borrower.

(13) Satisfactory evidence that theBorrower has the necessary legal au-thority to finance, construct or sub-stantially rehabilitate and maintainthe project and to apply for and re-ceive the proposed loan, that it meetsany requirements as to corporate orga-nization, and that it has authority toenter into such contract obligationand execute such security instrumentsas may be required by HUD.

(14) Evidence of previous participa-tion in HUD programs, if any, by theBorrower, its officers or directors, onsuch forms as may be prescribed byHUD.

(15YA description of all rental hous-ing projects and/or medical facilitiesowned and operated by the Borrower.

(16) A description of any financialdefault, modification of terms andconditions of financing, or legal actiontaken or pending against the Borroweror its officers, directors, or trustees intheir corporate capacity.

(17) A description of the Borrower'spast or current involvement in anyprograms or of its provision of ser-vices, other than housing, if any.which would give evidence of the orga-nization's management capabilities.

(18) A statement as to whether theBorrower has received a section 202fund reservation since May 1. 1976.

(19) A description of the Borrower'scapability to sponsor, develop, own,manage, and provide appropriate ser-vices in connection with housing forthe elderly or handicapped.

(20) An estimate of start-up ex-penses and the source of funds to meetthese expenses. If the Borrower plansto use section 106(b) seed money loans,an application for such loan must besubmitted with required attachments.

(21) Copies of balance sheet(s) andstatement(s) of income and expensesfor each of the past three years theBorrower has operated.

(22) In the case of project proposalsto be developed exclusively or primar-ily for the nonelderly handicapped,identification of the locality in whichthe Borrower proposes to develop theproject.

(23) In the case of project proposalsto be developed for the elderly, thefollowing specific information with re-spect to the proposed project:

(a) Documentary evidence that theBorrower has control of the site, e.g. acopy of a contract(s) of sale for thesite or a copy of the site optionagreement(s), a deed, or other legalcommitment for the site.

(b) A map showing the location ofthe site and the racial composition ofthe neighborhood, with the area ofracial concentration delineated.

(c) A sketch of the site plan showingthe general development of the site in-eluding the location of the proposedbuilding(s), streets, parking areas anddrives, service areas, and unusual sitefeatures.

.(d) Evidence that the proposed con-struction or rehabilitation is permissi-ble under applicable zoning ordinancesor regulations, or a statement of theproposed action to make the construc-tion or rehabilitation permissible andthe basis for belief that such actionwill be completed successfully prior tothe receipt of the conditional commit-ment for direct loan financing (e.g., asummary of the results of any recentrequests for rezoning on land In simi-lar zoning classifications and the timerequired for such rezoning. prellml-nary indications of acceptability fromzoning bodies, etc.).

(e) A statement as to whether pro-posed project will displace site occu-pants. If so, the proposal shall statethe number of families, individuals,and business concerns to be displaced(identified by race or minority groupstatus and whether they are owners orrenters), and shall demonstrate that

relocation is feasible and how neces-sary relocation payments, if any, willbe funded.

(f) A showing that the proposalmeets tny special requirements or re-strictions necessary for compliancewith the local HAP.

(g) A statement that gross rents (thesum of contract rents and allowances,if any) will not exceed published FairMarket Rents by more than that al-lowed by the Fair Market Rent Limitspursuant to § 880.108(a) or § 881.108(a)of the Regulations.

(24) A demonstration that the appli-cation meets any other requirementsas may be Imposed by or upon the De-partment and which requirements aremade known to the applicant prior tosubmission of the application.

§ 885.215 Limitation on numbers of units.No organization shall participate as

Sponsor, Co-sponsor, or Borrower Inthe filing of an application or applica-tions for a reservation of section 202loan funds in a single Region in a-single fiscal year in excess of that nec-essary to finance the construction orsubstantial rehabilitation of 300 unitsof housing and related facilities.

(a) This limitation shall apply to or-ganizations that participate as Co-sponsors regardless of whether the Co-sponsors are affiliated or non-affili-ated entities.

(b) Affiliated entities which submitseparate applications shall be deemedto be a single entity for purposes ofthis 300 unit limitation.

§ 885.220 Review of application for fundreservation.

(a) Initial Screening. To be eligiblefor selection, an Application must bereceived by the field office within thetime period specified in the Invitationand must be complete. In order to de-termine whether an Application iscomplete and acceptable for technicalprocessing, the field office shall per-form an initial screening upon receiptof the Application.

(b) Action on Applications Found ToBe Incomplete. If an Application is de-termined to be incomplete, the Bor-rower shall be advised in writing ofthe deficiencies and that additions orchanges will be accepted if they are re-ceived on or before a specified date(generally 10 calendar days from thedate of the request for additional in-formation).

c) Preliminary EvaZuation. Applica-tions found to be complete shall be eli-gible for a preliminary evaluation todetermine whether the entity filingthe Application is, In fact, an eligiblenonprofit corporation, and whetherthe Application is responsive to the In-vitation.

(d) Technical Processing. When anApplication is determined to be com-plete and responsive to the Invitation,


8495


technical processing, consisting of thefollowing, shall be accomplished:

(1) For each Application which Is de-termined to be subject to A-95 clear-ance, the field office shall send a copyto the appropriate A-95 Clearinghousefor review, inviting a response within30 calendar days from the date oftransmittal, unless the Borrower hasprovided appropriate site and prelimi-nary project information to theclearinghouse prior to submitting itsapplication to HUD, in which case theapplication shall include the com-ments, If any, of the clearinghouse;

(2) For purposes of compliance withsection 213 of the HCD Act of 1974,the field office shall forward (if notpreviously submitted by the Borrower)a notification, in the form prescribedby HUD, to the Chief Executive Offi-cer (or such designee as that Officermay designate) of the unit of generallocal government in which the pro-posed housing is to be located andshall invite a response within 30 calen-dar days from the date of the notifica-tion letter;

(3) The Application will be evaluatedby the field office on the basis ofthose factors which may be necessaryto determine the eligibility and accept-ability of the Sponsor and Borrower,acceptability of the location (site), ac-ceptability of the design concept, com-pliance with the Fair Market RentLimits, and the comments, if any, re-ceived during the response periodsfrom the appropriate A-95 Clearing-house and from the unit of generallocal government.

(4) If, in its evaluation of all perti-nent factors, the field office finds defi-ciencies which, in its judgment, arecorrectable -within a reasonable time,It may grant such additional time as itdeems appropriate to enable the Bor-rower to correct such deficiencies.Otherwise the Borrower shall be senta notification specifying the deficien-cies and stating that the Applicationhas been rejected.

(5) Prior to selection, the field officeshall complete an environmentalreview in compliance with the require-ments of HUD procedures pursuant tothe National Environmental PolicyAct of 1969. Prior to selection, thefield office shall determine whetherthe proposed site is in compliance withExecutive Order 11988, FloodplainManagement, and Executive Order11990, Wetlands Protection.

(6) Based on the factors set forth inthis paragraph (d), the field officeshall determine for each allocationarea the Applications which, in itsjudgment, are approvable. Selectionsthen shall be made in accordance withparagraph (e) of this -section.

(e) For each allocation area, thefield office shall rank order each Ap-plication on the basis of its assessmentof the Borrower's qualifications, the

proposed site, the design concept, andthe comments, if any, received fromthe appropriate A-95 clearinghouseand from the unit of general local gov-ernment. The field office shall identi-fy for selection the highest rankingApplications in 'descending orderwhich most reasonably approximatethe estimated maximum number ofunits which can be funded in any allo-cation area under the allocation offund authority; provided, however,that in accordance with 24 CFR891.404(d) priority will be given to ac-ceptable Applications from localitieswhich did not previously receive assist-ance.

(f) The ranking list developed pursu-ant to paragraph (e) above may bemodified by the Field Office Directorunder the following circumstances:

(1) If selection solely on the basis ofthe ranking would result in a violationof site and neighborhood standards; or

(2) Where necessary to provide anappropriate distribution by dollars andunits for projects for the non-elderlyhandicapped.

§ 885.225 Approval of applications.(a) A Borrower whose Application is

approved shall be issued a notice ofsection 202 Fund Reservation in aformat prescribed by the AssistantSecretary, specifying:.

(1) The amount of the section 202fund reservation, the number and mixof units, and the location (or locality,in the case of projects to serve thenon-elderly handicapped) of the pro-posed project.

(2) The amount of section 8 contractauthority reserved to the project.

(3) A date by which the Borrower isrequired to return a copy of the notifi-cation with an indication of Its accept-ance. -

(b) If the Borrower does not acceptthe notification by the date specified,the field office may notify the Borrow-er that its previous approval of theBorrower's Application is withdrawn;

(c) No part of the loan funds re-served may be transferred by the Bor-rower,

(d) A section 202 fund reservationmay be used only in connection withthe project which has been approvedin connection with the Applicationand may not be transferred to a sec-tion 8 project which is proposed in re-sponse to an invitation pursuant to§ 880.203 or 881.203 of this Chapter;,

(e) Subject to the availability offunds, and in accordance 'with direc-tives of the Assistant Secretary, theField Office Director may amend theamount of a fund reservation ap-proved pursuant to paragraph (b) ofthis section at any time before thefinal closing of a loan.

§ 885.230 Duration of section 202 fundsreservation.

The Field Office Director, subject tothe approval of the Assistant Secre-

tary, may cancel a fund reservation atany time if it can be established thatthe Borrower is not making satisfac-tory progress toward the start of con-struction, and shall cancel any reserva-tions of section 202 loan funds forproj- ects for which the constructionor -substantial rehabilitation is notcommenced within the eighteen-month period following Issuance ofthe Notice of section 202 Fund Reser-vation, unless an extension of time,not to exceed six months, Is requestedof and granted by the Field Office Di-rector.

Subpart C--Resei'ed]Subpart D-Drect Loan Financing Procedures

§ 885.400 Request for direct loan finane.ing.

Simultaneously with the notice ofsection 202 Fund Reservation, the,field office will invite the Borrower tosubmit a request for a conditional orfirm commitment for direct loan fi-nancing. The Request for Direct LoanFinancing shall be on forms prescribedby HUD, shall Include all such exhib.Its as HuD may require, and must besubmitted, within the time limit speci-fied in the notice of section 202 FundReservation, to the field office servingthe area in which the proposed projectwill be located.

(a) Processing of a request for a con-ditional commitment for direct loan fi-nancing shall include an evaluation ofthe Contract -Rents, the Borrower'sAffirmative Marketing Plan and thefinancial feasibility of the project.Contract Rents shall be established bythe field office within the applicableFair Market Rent Limits, and shall beno higher than the rents determinedby1HUD to be necessary to cover oper-ating costs, debt service on the section202 loan, and reasonable reserves. Inthe case of projects requesting section8 Contract Authority for les than allof the rental dwelling units, the Con-tract Rents must be within such levelsthat sufficient market demand can beanticipated for the unsubsidized rentaldwelling units to assure the feasibilityof the project.

(b) Processing of a request for a firmcommitment shall include review ofthe final plans and specifications,review of the Contractor/Borrower'scost estimate, and a review of the con-clusions reached during conditionalcommitment processing. In the case ofBorrowers permitted by the FieldOffice Director to submit requests forfirm commitment without goingthrough conditional commitment pro-cessing the field office shall performthe steps set forth in paragraph (a)above when carrying out firm commit-ment processing.

(c) Any Contract Rents which are orhave been proposed by a Borrowermay be modified by the field office at


8496

any time prior to the execution of theAgreement to Enter into a Housing As-sistance Payments Contract.

§ 885.405 Approval of requests for directloan financin.

The field office shall review the Re-quest for Direct Loan :Financing andthe required exhibits and shall notifythe Borrower of its approval by issu-ance of a conditional or firm commit-ment, as appropriate, or of its disap-proval of the Request,

(a) A conditional commitment shallbe issued in a format prescribed by theAssistant Secretary and shall includethe following:

(1). The estimated cost of the pro-ject, .

(2) The "as-is" value of the site andthe land value fully improved (withoffsite improvements installed),

(3) The detailed estimates of operat-ing expenses and taxes,

(4) The supportable cost.(5) The financial requirements.(6) The loan amount,(7) The approved contract rents. If

the approved rents are lower thanthose proposed by the Borrower, thecommitment shall state the reason(s)for the reduction(s). The conditionalcommitment also shall specify thetime period within which the Borrow-er must submit a request for a firmcommitment for direct loan financing.

b) A firm commitment shall beissued in a format prescribed by theAssistant Secretary and shall includethe following.

(1) Approval of the final plans andspecifications;

(2) A statement that the Contrac-tor/Borrower's cost estimates havebeen reviewed;

(3) Reaffirmation of the conclusionsreached during conditional commit-ment processi or a statement as towhat changes to earlier conclusions-have been approved.

If the Borrower was permitted toapply for a firm commitment withoutpassing through conditional commit-ment processing, the items listed inparagraph (a) above shall be includedin the issuance of the firm commit-ment for direct loan financing. Issu-ance ,of a firm commitment evidencesthe Assistant Secretary's approval ofthe request for direct loan financing,and sets forth the terms and condi-tions upon which the loan shall bemade and the loan proceeds disbursed.

(c) If a request for conditional orfirm commitment for direct loan fi-nancing is not forthcoming within thetime periods specified in the Notice ofsection 202 Fund? Reservation or theConditional Commitment, as appropri-ate, the Field Office Director maycancel the fund reservation. consistentwith the limitations specified in§ 885.230.,,


§ 885.410 Amount and tens of financing.(a) The amount of financing ap-

proved shall be the amount stated inthe Notice of section 202 Fund Reser-vation, including any increase ap-proved by the field office prior to thefinal closing of a loan; provided, how-ever, that the amount of financingprovided shall not exceed the lesser of:

(1) The dollar amounts stated in sub-paragraphs (b) through (f) of this sec-tion, or

(2) The total development cost ofthe project as determined by the fieldoffice.

(b) For such part of the property orproject attributable to dwelling use(excluding exterior land improvementas defined by the Assistant Secretary)the maximum loan amount, dependingon the number of bedrooms, shall be:(1) $19,000 per family unit without abedroom, (2) $21,500 per family unitwith one bedroom, (3) $25,000 perfamily unit with two bedrooms.

(c) In order to compensate for thehigher costs incident to constructionof elevator type structures of soundstandards of construction and design,the field office may increase the dollarlimitations per family unit as providedin paragraph (c) of this section. not toexceed: (1) $21,700 per family unitwithout a bedroom. (2) $24,900 perfamily unit with one bedroom. (3)$30,800 per family unit with two bed-rooms.

(d) Reduced loan amount-lease-holds. In the event the loan is securedby a leasehold estate rather than a feesimple estate, the allowable cost of theproperty upon which the loan amountis based shall be reduced by the valueof the leased fee.

(e) Adjusted loan amount-rehabili-tation projects. A loan amount whichinvolves a project to be rehabilitatedshall be subject to the following addi-tional limitations:

(1) Property held in fee. If the Bor-rower is the fee simple owner of theproject not encumbered by a mort-gage, the maximum loan amount shallnot exceed 100 percent of the cost ofthe proposed rehabilitation.

(2) Property subject to existingmortgage. If the Borrower owns theproject subject to an outstanding in-debtedness, which is to be refinancedwith part of the section 202 loan. themaximum loan amount shall notexceed the cost of rehabilitation plussuch portion of the outstanding In-debtedness as does not exceed the fairmarket value of such land and im-provements prior to the rehabilitation.as determined by the field office.

(3) Property to be acquired. If theproject is to be acquired by the Bor-rower and the purchase price is to befinanced with a part of the section 202loan, the maximum loan amount shallnot exceed the cost of the rehabilita-ion plus such portion of the purchase

8497

price as does not exceed the fairmarket value of such land and in-provements prior to the rehabilitation,as determined by the field office.

(f) Increased Mortgage Tl--ts-HIghCost Areas.

(1) In any geographical area wherethe Assistant Secretary finds costlevels so require, the Assistant Secre-tary may increase, but not to exceed50 percent, the dollar amount limita-tions set forth in § 885.410 (b) and (c).

(2) If the Assistant Secretary findsthat because of high costs in Alaska,Guam, or Hawaii it Is not feasible toconstruct dwellings without the sacri-fice of sound standards of construc-tion. design, and livability within thelimitations of maximum loan amountsprovided in this section the principalamount of mortgages may be in-creased by such amounts as may benecessary to compensate for suchcosts, but not to exceed in any eventthe maximum, including high costarea increases, if any, otherwise appli-cable by more than one-half thereof.

(g) The loan shall bear interest at arate established by the Secretary byadding.

(1) A rate determined by the Secre-tary of the Treasury to be the averageInterest rate on all interest bearing ob-ligations to the United States thenforming a part of the public debt com-puted at the end of the fiscal year im-mediately prior to the date on whichthe loan Is made: plus (2) andallowance to cover administrative costsand probable losses under the pro-gram, which allowance has been deter-mined by the Secretary of BHUD to beone percent (1%) per annum duringthe construction period, and one halfof one percent (0.5%) thereafter.

(h) Loans shall bear interest at therate In effect at the time the loan ismade. A loan shall be deemed to bemade as of the date of the initial loanclosing pursuant to § 885.415. If a loanis made in a fiscal year other thanthat fiscal year in-which the Requestis processed, and the interest rate forthe year in which the loan is made isdifferent from the rate used for pro-cessing, the field office shall reprocessthe Request based on the new rate.

(I) The loan shall be secured by afirst mortgage on real estate in feesimple or long term leasehold; themortgage shall be repayable during aterm not to exceed 40 years and shallbe subject to such terms -and condi-tions as shall be determined by the As-sistant Secretary.

(J) In order to assure HUD of theBorrower's continued commitment tothe development; management, andoperation of the project, a minimumcapital investment is required of sec-tion 202 Borrowers of one-half of onepercent (0.5%) of the mortgageamount committed to be disbursed.not to exceed the amount of $10,000.

FEDERAL REGISTER, VOL 44 NO. 41-WEDNESDAY, MARCH 1, 1978


Section 106(b) loans made pursuant tosection 106 of the Housing Act of 1968may not be utilized to meet the mini-mum capital investment requirement.Such minimum capital investmentshall be placed in escrow at the initialclosing of the section 202 loan andshall be held by HUD or other escrowagent acceptable to the field office fornot less than a three-year period fromthe date of initial occupancy and maybe used for operating expenses or defi-cits as may be directed by the fieldoffice. Any unexpended balance re-maining in the minimum capital in-vestment account at the end of theescrow period shall be returned to theBorrower.

§ 885.415 Requirements prior to initialloan closing.

Prior to the initial loan closing, theBorrower shall furnish such executeddocuments on HUD-approved forms asthe field office may require includingthe following:

(a) Agreement to Enter into HousingAssistance Payments Contract;

(b) Certificate of Incorporation ofthe Borrower as required by applicablestate or local law;

(c) Internal Revenue Service Section501(c) (3) or (4) tax exemption ruling;

(d) Certificate of Relationships andNonprofit Motives of the Borrower;

(e) Mortgagee's Attorney's Opinionas to the legal status of the Borrower,building permit, and compliance withzoning laws and requirements;

(f) Regulatory Agreement for Non-profit Section 202/Section 8 Mortga-gors;

(g) Mortgagor's Oath that the Pro-ject will not be used for hotel or tran-sient purposes;

(h) Agreement and Certification tocertify actual costs and as to any fi-nancial and family relationships be-tween the Borrower, the architect,general contractor and subcontractors;

(I) Assurance of Compliance withHUD Regulations under Title VI ofthe Civil Rights Act of 1964;

(j) Note and First Mortgage or Deedof Trust executed in accordance with§ 885.405 (h);

(k) A title policy insuring that themortgage constitutes a first lien onthe project;

(1) Building Loan Agreement settingforth the conditions for loan disburse-ment;

(m) Construction or Substantial Re-habilitation Contract between theBorrower and the General Contractorwhich shall be a cost plus contractwith an upset price and may providefor an incentive payment to the Con-tract or for early completion;(n) Assurance of Completion of Con-struction or Substantial Rehabilita-tion Contract in the form of 50 per-cent Performance and Payment Bondor a cash escrow in the amount of 25percent of total construction cost;

(o) Escrow Agreement in the amountof the cost of any off-site facilities,funded by a cash deposit or letter ofcredit to assure completion of the fa-cilities;

(p) A Contractor's and Sub-Contrac-tor's Certification Concerning LaborStandards and Prevailing Wage Re-quirements.

§ 885.420 Loan Disbursement Procedures.(a) Disbursements of loan proceeds

shall be made directly by HUD to orfor the account of the Borrower Andmay be made through an approvedlender, mortgage servicer, title insur-ance company, or other agent satisfac-tory to the Borrower and HUD.

(b) All disbursements to the Borrow-er shall be made on a periodic basis inan amount not to exceed the HUD-ap-proved cost of portions of constructionor substantial rehabilitation workcompleted and in place, minus the ap-propriate holdback, as determined by'the field office.

(c) Requisitions for loan disburse-ments shall be submitted by the Bor-rower on forms to be prescribed by theAssistant Secretary and shall be ac-companied by such additional infor-mation as the field office may requirein order to approve loan disburse-ments under this Part, including butnot limited to evidence of compliance

* with the Davis-Bacon -Act, Departmentof Labor regulations, all applicablezoning, buildings and other govern-mental requirements, and such evi-dence of continued priority' of themortgage of the Borrower as the Assis-tant Secretary may prescribe.

§ 885.425 Completion of construction orsubstantial rehabilitation, execution ofHAP contract, and cost certificationand approvals by HUD.

(a) The requirements for completionof construction or substantial rehabili-

tation and approvals by HUD shall besatisfied by the Borrower prior to sub.mission of a final requisition for dis.bursement of loan proceeds,

(b) Upon issuance of a Certificate ofOccupancy the HAP Contract shall beexecuted first by the Borrower andthen by HUD, however, paymentsunder the HAP Contract shall only bemade with respect to occupied units,and further, the Borrower shall not beentitled to receive vacancy paymentsfor unoccupied units until and unlessthe project is finally accepted byHUD. If the Project Is to be completedin stages, the procedures of this sec-tion shall apply to each stage.

(c) The Borrower shall submit to thefield office all documentation requiredfor final disbursement of the loan in-cluding:

(1) A Borrower's/Mortgagor's Certi-ficate of Actual Cost, showing theactual cost to the mortgagor of thecost plus construction contract, archi-tectural, legal, organizational, offsitecosts, and all other items of eligibleexpense. The certificate shall not in-clude as actual cost any kickbacks, re-bates, trade discounts, or other similarpayments to the mortgagor or to anyof its officers, directors, or members.

(2) A verification of the Certificateof Actual Cost by an independent Cer-tified Public Accountant or indepen-dent public accountant acceptable tothe field office.

(3) A certification of the generalcontractor (and such subcontractor,material suppliers, and equipment les-sors, as the Assistant Secretary orfield office may require), on a formprescribed by the Assistant Secretary,as to all actual costs paid for labor,materials, and subcontract work underthe general contract exclusive of thebuilder's fee and kickbacks, rebated,trade discounts, or other similar pay-ments to the general contractor, themortgagor, or any of its officers, direc-tors, stockholders, partners, or mem-bers.

Issued at Washington, D.C., on Feb-ruary 22, 1978.

LAwfENCE B. SIMONS,Assistant Secretary for Housing,

Federal Housing Commissioner.

[FR Doe. 78-5314 Filed 2-28-78; 8:45 aml


8498

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WEDNESDAY, MARCH 1, 1978PART VII

OFFICE OFMANAGEMENTAND BUDGET

BUDGET DEFERRALSReports

NOTICES

[3110-01]OFFICE OF MANAGEMENT AND

BUDGET

DEPARTMENTS OF COMMERCE,INTERIOR AND TREASURY

Budget Deferrals

TO THE CONGRESS OF THE UNITED STATES:

In accordance with the Impound-ment Control Act of 1974, I herewithreport a new Department of Com-merce deferral of Maritime Adminis-tration funds totalling $122 million inbudget authority and a new deferral of$Q.4 million in outlays for the Antire-cession financial assistance fund in theDepartment of the Treasury.

In addition, I am reporting routinerevisions to two previously transmitteddeferrals. A Department of the Interi-or deferral is increased by $2 millionin budget authority, and a Depart-ment of the Treasury deferral is in-creased by $4.1 million in outlays. -

The details of each deferral are con-tained in the.attached reports.

JnMY CARTER.

THE WHITE HOUSE,February 23, 1978.


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