1356 Federal Register / Vol. 84, No. 23 / Monday, February 4, 2019 / Rules and Regulations 

1 78 FR 4726 (Jan. 22, 2013). 

2See 12 CFR 1026.35(b)(2)(iii)(C). 

3See 80 FR 59943, 59951 (Oct. 2, 2015). The 

Bureau also issued an interim final rule in March 

2016 to revise certain provisions in Regulation Z to 

effectuate the Helping Expand Lending Practices in 

Rural Communities Act’s amendments to TILA 

(Pub. L. 114–94, section 89003, 129 Stat. 1312, 

1800–01 (2015)). The rule broadened the cohort of 

creditors that may be eligible under TILA for the 

special provisions allowing origination of balloonpayment qualified mortgages and balloon-payment 

high-cost mortgages, as well as for the escrow 

exemption. See 81 FR 16074 (Mar. 25, 2016). 

4012a(f) is $2,187 for each violation that 

occurs on or after January 15, 2019, with 

no cap on the total amount of penalties 

that can be assessed against any single 

institution during any calendar year. 

Dated: January 29, 2019. 

Dale Aultman, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 2019–00789 Filed 2–1–19; 8:45 am] 

BILLING CODE 6705–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

RIN 3170–AA93 

Truth in Lending Act (Regulation Z) 

Adjustment to Asset-Size Exemption 

Threshold 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

amending the official commentary that 

interprets the requirements of the 

Bureau’s Regulation Z (Truth in 

Lending) to reflect a change in the assetsize threshold for certain creditors to 

qualify for an exemption to the 

requirement to establish an escrow 

account for a higher-priced mortgage 

loan based on the annual percentage 

change in the average of the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W). Based on the 

2.6 percent increase in the average of 

the CPI–W for the 12-month period 

ending in November 2018, the 

exemption threshold is adjusted to 

increase to $2.167 billion from $2.112 

billion. Therefore, creditors with assets 

of less than $2.167 billion (including 

assets of certain affiliates) as of 

December 31, 2018, are exempt, if other 

requirements of Regulation Z also are 

met, from establishing escrow accounts 

for higher-priced mortgage loans in 

2019. 

DATES: Effective date: This rule is 

effective February 4, 2019. Applicability 

date: This rule is applicable on January 

1, 2019, consistent with relevant 

statutory or regulatory provisions. 

FOR FURTHER INFORMATION CONTACT: 

Monique Chenault, Paralegal Specialist, 

Office of Regulations, at (202) 435–7700. 

If you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 129D of the Truth in Lending 

Act (TILA) contains a general 

requirement that an escrow account be 

established by a creditor to pay for 

property taxes and insurance premiums 

for certain first-lien higher-priced 

mortgage loan transactions. TILA 

section 129D also generally permits an 

exemption from the higher-priced 

mortgage loan escrow requirement for a 

creditor that meets certain requirements, 

including any asset-size threshold the 

Bureau may establish. 

In the 2013 Escrows Final Rule,1 the 

Bureau established such an asset-size 

threshold of $2 billion, which would 

adjust automatically each year, based on 

the year-to-year change in the average of 

the CPI–W for each 12-month period 

ending in November, with rounding to 

the nearest million dollars.2 In 2015, the 

Bureau revised the asset-size threshold 

for small creditors and how it applies. 

The Bureau included in the calculation 

of the asset-size threshold the assets of 

the creditor’s affiliates that regularly 

extended covered transactions secured 

by first liens during the applicable 

period and added a grace period to 

allow an otherwise eligible creditor that 

exceeded the asset limit in the 

preceding calendar year (but not in the 

calendar year before the preceding year) 

to continue to operate as a small 

creditor with respect to transactions 

with applications received before April 

1 of the current calendar year.3 For 

2018, the threshold was $2.112 billion. 

During the 12-month period ending in 

November 2018, the average of the CPI– 

W increased by 2.6 percent. As a result, 

the exemption threshold is increased to 

$2.167 billion for 2019. Thus, if the 

creditor’s assets together with the assets 

of its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2018 are less than $2.167 

billion on December 31, 2018, and it 

meets the other requirements of 

§ 1026.35(b)(2)(iii), it will be exempt 

from the escrow-accounts requirement 

for higher-priced mortgage loans in 2019 

and will also be exempt from the 

escrow-accounts requirement for higherpriced mortgage loans for purposes of 

any loan consummated in 2020 with 

applications received before April 1, 

2020. The adjustment to the escrows 

asset-size exemption threshold will also 

increase the threshold for small-creditor 

portfolio and balloon-payment qualified 

mortgages under Regulation Z. The 

requirements for small-creditor portfolio 

qualified mortgages at 

§ 1026.43(e)(5)(i)(D) reference the asset 

threshold in § 1026.35(b)(2)(iii)(C). 

Likewise, the requirements for balloonpayment qualified mortgages at 

§ 1026.43(f)(1)(vi) reference the asset 

threshold in § 1026.35(b)(2)(iii)(C). 

Under § 1026.32(d)(1)(ii)(C), balloonpayment qualified mortgages that satisfy 

all applicable criteria in 

§ 1026.43(f)(1)(i) through (vi) and (f)(2), 

including being made by creditors that 

have (together with certain affiliates) 

total assets below the threshold in 

§ 1026.35(b)(2)(iii)(C), are also excepted 

from the prohibition on balloon 

payments for high-cost mortgages. 

II. Procedural Requirements 

A. Administrative Procedure Act 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if the 

Bureau finds that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest. 5 U.S.C. 553(b)(B). Pursuant to 

this final rule, comment 35(b)(2)(iii)–1 

in Regulation Z is amended to update 

the exemption threshold. The 

amendment in this final rule is 

technical and merely applies the 

formula previously established in 

Regulation Z for determining any 

adjustments to the exemption threshold. 

For these reasons, the Bureau has 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary. Therefore, the amendment 

is adopted in final form. 

Section 553(d) of the APA generally 

requires publication of a final rule not 

less than 30 days before its effective 

date, except (1) a substantive rule which 

grants or recognizes an exemption or 

relieves a restriction; (2) interpretive 

rules and statements of policy; or (3) as 

otherwise provided by the agency for 

good cause found and published with 

the rule. 5 U.S.C. 553(d). At a minimum, 

the Bureau believes the amendments fall 

under the third exception to section 

553(d). The Bureau finds that there is 

good cause to make the amendments 

effective on February 4, 2019. The 

amendment in this final rule is 

technical and non-discretionary, and it 

applies the method previously 

established in the agency’s regulations 


amozie on DSK3GDR082PROD with RULES
Federal Register / Vol. 84, No. 23 / Monday, February 4, 2019 / Rules and Regulations 1357 

4 5 U.S.C. 603(a), 604(a). 

5 44 U.S.C. 3506; 5 CFR part 1320. 

for automatic adjustments to the 

threshold. 

B. Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required, the Regulatory 

Flexibility Act does not require an 

initial or final regulatory flexibility 

analysis.4

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,5 the agency 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Bureau 

will submit a report containing this rule 

and other required information to the 

United States Senate, the United States 

House of Representatives, and the 

Comptroller General of the United 

States prior to the rule taking effect. The 

Office of Information and Regulatory 

Affairs (OIRA) has designated this rule 

as not a ‘‘major rule’’ as defined by 5 

U.S.C. 804(2). 

List of Subjects in 12 CFR Part 1026 

Advertising, Appraisal, Appraiser, 

Banking, Banks, Consumer protection, 

Credit, Credit unions, Mortgages, 

National banks, Reporting and 

recordkeeping requirements, Savings 

associations, Truth in lending. 

Authority and Issuance 

For the reasons set forth above, the 

Bureau amends Regulation Z, 12 CFR 

part 1026, as set forth below: 

PART 1026—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 1026 

continues to read as follows: 

Authority: 12 U.S.C. 2601, 2603–2605, 

2607, 2609, 2617, 3353, 5511, 5512, 5532, 

5581; 15 U.S.C. 1601 et seq. 

■ 2. In supplement I to part 1026, under 

Section 1026.35—Requirements for 

Higher-Priced Mortgage Loans, 35(b)(2) 

Exemptions, Paragraph 35(b)(2)(iii) is 

revised to read as follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain Home 

Mortgage Transactions 

* * * * * 

Section 1026.35—Requirements for HigherPriced Mortgage Loans 

* * * * * 

35(b)(2) Exemptions. 

* * * * * 

Paragraph 35(b)(2)(iii). 

1. Requirements for exemption. Under 

§ 1026.35(b)(2)(iii), except as provided in 

§ 1026.35(b)(2)(v), a creditor need not 

establish an escrow account for taxes and 

insurance for a higher-priced mortgage loan, 

provided the following four conditions are 

satisfied when the higher-priced mortgage 

loan is consummated: 

i. During the preceding calendar year, or 

during either of the two preceding calendar 

years if the application for the loan was 

received before April 1 of the current 

calendar year, a creditor extended a first-lien 

covered transaction, as defined in 

§ 1026.43(b)(1), secured by a property located 

in an area that is either ‘‘rural’’ or 

‘‘underserved,’’ as set forth in 

§ 1026.35(b)(2)(iv). 

A. In general, whether the rural-orunderserved test is satisfied depends on the 

creditor’s activity during the preceding 

calendar year. However, if the application for 

the loan in question was received before 

April 1 of the current calendar year, the 

creditor may instead meet the rural-orunderserved test based on its activity during 

the next-to-last calendar year. This provides 

creditors with a grace period if their activity 

meets the rural-or-underserved test (in 

§ 1026.35(b)(2)(iii)(A)) in one calendar year 

but fails to meet it in the next calendar year. 

B. A creditor meets the rural-orunderserved test for any higher-priced 

mortgage loan consummated during a 

calendar year if it extended a first-lien 

covered transaction in the preceding calendar 

year secured by a property located in a ruralor-underserved area. If the creditor does not 

meet the rural-or-underserved test in the 

preceding calendar year, the creditor meets 

this condition for a higher-priced mortgage 

loan consummated during the current 

calendar year only if the application for the 

loan was received before April 1 of the 

current calendar year and the creditor 

extended a first-lien covered transaction 

during the next-to-last calendar year that is 

secured by a property located in a rural or 

underserved area. The following examples 

are illustrative: 

1. Assume that a creditor extended during 

2016 a first-lien covered transaction that is 

secured by a property located in a rural or 

underserved area. Because the creditor 

extended a first-lien covered transaction 

during 2016 that is secured by a property 

located in a rural or underserved area, the 

creditor can meet this condition for 

exemption for any higher-priced mortgage 

loan consummated during 2017. 

2. Assume that a creditor did not extend 

during 2016 a first-lien covered transaction 

secured by a property that is located in a 

rural or underserved area. Assume further 

that the same creditor extended during 2015 

a first-lien covered transaction that is located 

in a rural or underserved area. Assume 

further that the creditor consummates a 

higher-priced mortgage loan in 2017 for 

which the application was received in 

November 2017. Because the creditor did not 

extend during 2016 a first-lien covered 

transaction secured by a property that is 

located in a rural or underserved area, and 

the application was received on or after April 

1, 2017, the creditor does not meet this 

condition for exemption. However, assume 

instead that the creditor consummates a 

higher-priced mortgage loan in 2017 based on 

an application received in February 2017. 

The creditor meets this condition for 

exemption for this loan because the 

application was received before April 1, 

2017, and the creditor extended during 2015 

a first-lien covered transaction that is located 

in a rural or underserved area. 

ii. The creditor and its affiliates together 

extended no more than 2,000 covered 

transactions, as defined in § 1026.43(b)(1), 

secured by first liens, that were sold, 

assigned, or otherwise transferred by the 

creditor or its affiliates to another person, or 

that were subject at the time of 

consummation to a commitment to be 

acquired by another person, during the 

preceding calendar year or during either of 

the two preceding calendar years if the 

application for the loan was received before 

April 1 of the current calendar year. For 

purposes of § 1026.35(b)(2)(iii)(B), a transfer 

of a first-lien covered transaction to ‘‘another 

person’’ includes a transfer by a creditor to 

its affiliate. 

A. In general, whether this condition is 

satisfied depends on the creditor’s activity 

during the preceding calendar year. However, 

if the application for the loan in question is 

received before April 1 of the current 

calendar year, the creditor may instead meet 

this condition based on activity during the 

next-to-last calendar year. This provides 

creditors with a grace period if their activity 

falls at or below the threshold in one 

calendar year but exceeds it in the next 

calendar year. 

B. For example, assume that in 2015 a 

creditor and its affiliates together extended 

1,500 loans that were sold, assigned, or 

otherwise transferred by the creditor or its 

affiliates to another person, or that were 

subject at the time of consummation to a 

commitment to be acquired by another 

person, and 2,500 such loans in 2016. 

Because the 2016 transaction activity exceeds 

the threshold but the 2015 transaction 

activity does not, the creditor satisfies this 

condition for exemption for a higher-priced 

mortgage loan consummated during 2017 if 

the creditor received the application for the 

loan before April 1, 2017, but does not satisfy 

this condition for a higher-priced mortgage 

loan consummated during 2017 if the 

application for the loan was received on or 

after April 1, 2017. 

C. For purposes of § 1026.35(b)(2)(iii)(B), 

extensions of first-lien covered transactions, 

during the applicable time period, by all of 

a creditor’s affiliates, as ‘‘affiliate’’ is defined 

in § 1026.32(b)(5), are counted toward the 

threshold in this section. ‘‘Affiliate’’ is 

defined in § 1026.32(b)(5) as any company 

that controls, is controlled by, or is under 

common control with another company, as 

set forth in the Bank Holding Company Act 

of 1956 (12 U.S.C. 1841 et seq.). Under the 

Bank Holding Company Act, a company has 


amozie on DSK3GDR082PROD with RULES
1358 Federal Register / Vol. 84, No. 23 / Monday, February 4, 2019 / Rules and Regulations 

control over a bank or another company if it 

directly or indirectly or acting through one or 

more persons owns, controls, or has power to 

vote 25 per centum or more of any class of 

voting securities of the bank or company; it 

controls in any manner the election of a 

majority of the directors or trustees of the 

bank or company; or the Federal Reserve 

Board determines, after notice and 

opportunity for hearing, that the company 

directly or indirectly exercises a controlling 

influence over the management or policies of 

the bank or company. 12 U.S.C. 1841(a)(2). 

iii. As of the end of the preceding calendar 

year, or as of the end of either of the two 

preceding calendar years if the application 

for the loan was received before April 1 of 

the current calendar year, the creditor and its 

affiliates that regularly extended covered 

transactions secured by first liens, together, 

had total assets that are less than the 

applicable annual asset threshold. 

A. For purposes of § 1026.35(b)(2)(iii)(C), 

in addition to the creditor’s assets, only the 

assets of a creditor’s ‘‘affiliate’’ (as defined by 

§ 1026.32(b)(5)) that regularly extended 

covered transactions (as defined by 

§ 1026.43(b)(1)) secured by first liens, are 

counted toward the applicable annual asset 

threshold. See comment 35(b)(2)(iii)–1.ii.C 

for discussion of definition of ‘‘affiliate.’’ 

B. Only the assets of a creditor’s affiliate 

that regularly extended first-lien covered 

transactions during the applicable period are 

included in calculating the creditor’s assets. 

The meaning of ‘‘regularly extended’’ is 

based on the number of times a person 

extends consumer credit for purposes of the 

definition of ‘‘creditor’’ in § 1026.2(a)(17). 

Because covered transactions are 

‘‘transactions secured by a dwelling,’’ 

consistent with § 1026.2(a)(17)(v), an affiliate 

regularly extended covered transactions if it 

extended more than five covered transactions 

in a calendar year. Also consistent with 

§ 1026.2(a)(17)(v), because a covered 

transaction may be a high-cost mortgage 

subject to § 1026.32, an affiliate regularly 

extends covered transactions if, in any 12- 

month period, it extends more than one 

covered transaction that is subject to the 

requirements of § 1026.32 or one or more 

such transactions through a mortgage broker. 

Thus, if a creditor’s affiliate regularly 

extended first-lien covered transactions 

during the preceding calendar year, the 

creditor’s assets as of the end of the 

preceding calendar year, for purposes of the 

asset limit, take into account the assets of 

that affiliate. If the creditor, together with its 

affiliates that regularly extended first-lien 

covered transactions, exceeded the asset limit 

in the preceding calendar year—to be eligible 

to operate as a small creditor for transactions 

with applications received before April 1 of 

the current calendar year—the assets of the 

creditor’s affiliates that regularly extended 

covered transactions in the year before the 

preceding calendar year are included in 

calculating the creditor’s assets. 

C. If multiple creditors share ownership of 

a company that regularly extended first-lien 

covered transactions, the assets of the 

company count toward the asset limit for a 

co-owner creditor if the company is an 

‘‘affiliate,’’ as defined in § 1026.32(b)(5), of 

the co-owner creditor. Assuming the 

company is not an affiliate of the co-owner 

creditor by virtue of any other aspect of the 

definition (such as by the company and coowner creditor being under common control), 

the company’s assets are included toward the 

asset limit of the co-owner creditor only if 

the company is controlled by the co-owner 

creditor, ‘‘as set forth in the Bank Holding 

Company Act.’’ If the co-owner creditor and 

the company are affiliates (by virtue of any 

aspect of the definition), the co-owner 

creditor counts all of the company’s assets 

toward the asset limit, regardless of the coowner creditor’s ownership share. Further, 

because the co-owner and the company are 

mutual affiliates the company also would 

count all of the co-owner’s assets towards its 

own asset limit. See comment 35(b)(2)(iii)– 

1.ii.C for discussion of the definition of 

‘‘affiliate.’’ 

D. A creditor satisfies the criterion in 

§ 1026.35(b)(2)(iii)(C) for purposes of any 

higher-priced mortgage loan consummated 

during 2016, for example, if the creditor 

(together with its affiliates that regularly 

extended first-lien covered transactions) had 

total assets of less than the applicable asset 

threshold on December 31, 2015. A creditor 

that (together with its affiliates that regularly 

extended first-lien covered transactions) did 

not meet the applicable asset threshold on 

December 31, 2015 satisfies this criterion for 

a higher-priced mortgage loan consummated 

during 2016 if the application for the loan 

was received before April 1, 2016 and the 

creditor (together with its affiliates that 

regularly extended first-lien covered 

transactions) had total assets of less than the 

applicable asset threshold on December 31, 

2014. 

E. Under § 1026.35(b)(2)(iii)(C), the 

$2,000,000,000 asset threshold adjusts 

automatically each year based on the year-toyear change in the average of the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers, not seasonally adjusted, for 

each 12-month period ending in November, 

with rounding to the nearest million dollars. 

The Bureau will publish notice of the asset 

threshold each year by amending this 

comment. For calendar year 2019, the asset 

threshold is $2,167,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2018 has 

total assets of less than $2,167,000,000 on 

December 31, 2018, satisfies this criterion for 

purposes of any loan consummated in 2019 

and for purposes of any loan consummated 

in 2020 for which the application was 

received before April 1, 2020. For historical 

purposes: 

1. For calendar year 2013, the asset 

threshold was $2,000,000,000. Creditors that 

had total assets of less than $2,000,000,000 

on December 31, 2012, satisfied this criterion 

for purposes of the exemption during 2013. 

2. For calendar year 2014, the asset 

threshold was $2,028,000,000. Creditors that 

had total assets of less than $2,028,000,000 

on December 31, 2013, satisfied this criterion 

for purposes of the exemption during 2014. 

3. For calendar year 2015, the asset 

threshold was $2,060,000,000. Creditors that 

had total assets of less than $2,060,000,000 

on December 31, 2014, satisfied this criterion 

for purposes of any loan consummated in 

2015 and, if the creditor’s assets together 

with the assets of its affiliates that regularly 

extended first-lien covered transactions 

during calendar year 2014 were less than that 

amount, for purposes of any loan 

consummated in 2016 for which the 

application was received before April 1, 

2016. 

4. For calendar year 2016, the asset 

threshold was $2,052,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2015 had 

total assets of less than $2,052,000,000 on 

December 31, 2015, satisfied this criterion for 

purposes of any loan consummated in 2016 

and for purposes of any loan consummated 

in 2017 for which the application was 

received before April 1, 2017. 

5. For calendar year 2017, the asset 

threshold was $2,069,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2016 had 

total assets of less than $2,069,000,000 on 

December 31, 2016, satisfied this criterion for 

purposes of any loan consummated in 2017 

and for purposes of any loan consummated 

in 2018 for which the application was 

received before April 1, 2018. 

6. For calendar year 2018, the asset 

threshold was $2,112,000,000. A creditor that 

together with the assets of its affiliates that 

regularly extended first-lien covered 

transactions during calendar year 2017 had 

total assets of less than $2,112,000,000 on 

December 31, 2017, satisfied this criterion for 

purposes of any loan consummated in 2018 

and for purposes of any loan consummated 

in 2019 for which the application was 

received before April 1, 2019. 

iv. The creditor and its affiliates do not 

maintain an escrow account for any mortgage 

transaction being serviced by the creditor or 

its affiliate at the time the transaction is 

consummated, except as provided in 

§ 1026.35(b)(2)(iii)(D)(1) and (2). Thus, the 

exemption applies, provided the other 

conditions of § 1026.35(b)(2)(iii) are satisfied, 

even if the creditor previously maintained 

escrow accounts for mortgage loans, provided 

it no longer maintains any such accounts 

except as provided in 

§ 1026.35(b)(2)(iii)(D)(1) and (2). Once a 

creditor or its affiliate begins escrowing for 

loans currently serviced other than those 

addressed in § 1026.35(b)(2)(iii)(D)(1) and (2), 

however, the creditor and its affiliate become 

ineligible for the exemption in 

§ 1026.35(b)(2)(iii) on higher-priced mortgage 

loans they make while such escrowing 

continues. Thus, as long as a creditor (or its 

affiliate) services and maintains escrow 

accounts for any mortgage loans, other than 

as provided in § 1026.35(b)(2)(iii)(D)(1) and 

(2), the creditor will not be eligible for the 

exemption for any higher-priced mortgage 

loan it may make. For purposes of 

§ 1026.35(b)(2)(iii), a creditor or its affiliate 

‘‘maintains’’ an escrow account only if it 

services a mortgage loan for which an escrow 

account has been established at least through 

the due date of the second periodic payment 

under the terms of the legal obligation. 

* * * * * 


amozie on DSK3GDR082PROD with RULES
Federal Register / Vol. 84, No. 23 / Monday, February 4, 2019 / Rules and Regulations 1359 

1Annual Charges for the Use of Government 

Lands, Order No. 774, 78 FR 5256 (January 25, 

2013), FERC Stats. & Regs. ¶ 31,341 (2013). 

2 18 CFR part 11 (2018). 

Dated: December 20, 2018. 

Kathleen Kraninger, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2018–28374 Filed 1–31–19; 4:15 pm] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 11 

[Docket No. RM11–6–000] 

Annual Update to Fee Schedule for the 

Use of Government Lands by 

Hydropower Licensees 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: In accordance with the 

Commission’s regulations, the 

Commission, by its designee, the 

Executive Director, issues this 

document of the annual update to the 

fee schedule, which lists per-acre rental 

fees by county (or other geographic area) 

for use of government lands by 

hydropower licensees. 

DATES: This rule is effective February 4, 

2019 and updates Appendix A to Part 

11 with the fee schedule of per-acre 

rental fees by county (or other 

geographic area) from October 1, 2018, 

through September 30, 2019 (Fiscal Year 

2019). 

FOR FURTHER INFORMATION CONTACT: 

Norman Richardson, Financial 

Management Division, Office of the 

Executive Director, Federal Energy 

Regulatory Commission, 888 First Street 

NE, Washington, DC 20426, (202) 502– 

6219, Norman.Richardson@ferc.gov. 

SUPPLEMENTARY INFORMATION: 

Annual Update to Fee Schedule 

(Issued January 18, 2019) 

Section 11.2 of the Commission’s 

regulations provides a method for 

computing reasonable annual charges 

for recompensing the United States for 

the use, occupancy, and enjoyment of 

its lands by hydropower licensees.1

Annual charges for the use of 

government lands are payable in 

advance, and are based on an annual 

schedule of per-acre rental fees 

published in Appendix A to Part 11 of 

the Commission’s regulations.2 This 

document updates the fee schedule in 

Appendix A to Part 11 for fiscal year 

2019 (October 1, 2018, through 

September 30, 2019). 

Effective Date 

This Final Rule is effective February 

4, 2019. The provisions of 5 U.S.C. 804, 

regarding Congressional review of final 

rules, do not apply to this Final Rule 

because the rule concerns agency 

procedure and practice and will not 

substantially affect the rights or 

obligations of non-agency parties. This 

Final Rule merely updates the fee 

schedule published in the Code of 

Federal Regulations to reflect scheduled 

adjustments, as provided for in section 

11.2 of the Commission’s regulations. 

List of Subjects in 18 CFR Part 11 

Public lands. 

By the Executive Director. 

Issued: January 18, 2019. 

Anton C. Porter, 

Executive Director, Office of the Executive 

Director. 

In consideration of the foregoing, the 

Commission amends part 11, chapter I, 

title 18, Code of Federal Regulations, as 

follows. 

PART 11—[AMENDED] 

■ 1. The authority citation for part 11 

continues to read as follows: 

Authority: 16 U.S.C. 792–828c; 42 U.S.C. 

7101–7352. 

■ 2. Appendix A to part 11 is revised to 

read as follows: 

Appendix A to Part 11—Fee Schedule 

for FY 2019 

State County Fee/acre/yr. 

Alabama ...................................................................................... Autauga ...................................................................................... $64.31 

Baldwin ....................................................................................... 112.02 

Barbour ...................................................................................... 63.64 

Bibb ............................................................................................ 59.03 

Blount ......................................................................................... 102.24 

Bullock ........................................................................................ 61.29 

Butler .......................................................................................... 68.36 

Calhoun ...................................................................................... 85.74 

Chambers ................................................................................... 73.25 

Cherokee .................................................................................... 96.22 

Chilton ........................................................................................ 82.54 

Choctaw ..................................................................................... 52.70 

Clarke ......................................................................................... 57.56 

Clay ............................................................................................ 69.62 

Cleburne ..................................................................................... 77.26 

Coffee ......................................................................................... 74.20 

Colbert ........................................................................................ 79.37 

Conecuh ..................................................................................... 56.04 

Coosa ......................................................................................... 58.33 

Covington ................................................................................... 63.47 

Crenshaw ................................................................................... 57.10 

Cullman ...................................................................................... 117.54 

Dale ............................................................................................ 70.64 

Dallas ......................................................................................... 51.65 

DeKalb ....................................................................................... 106.67 

Elmore ........................................................................................ 89.36 

Escambia ................................................................................... 63.92 

Etowah ....................................................................................... 100.16 

Fayette ....................................................................................... 59.77 


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