Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations 79821 

accordance with this section. If DOE 

does not notify the applicant of the 

disposition of the petition for interim 

waiver, in writing, within 45 business 

days of receipt of the petition, the 

interim waiver is granted utilizing the 

alternate test procedure requested in the 

petition. Notice of DOE’s determination 

on the petition for interim waiver will 

be posted on the Department’s website 

not later than 5 business days after the 

end of the review period. Such 

determination will also be submitted for 

publication in the Federal Register. 

(iii) A petition submitted under this 

paragraph (whether for an interim 

waiver or waiver) is considered 

‘‘received’’ on the date it is received by 

the Department through the 

Department’s established email box for 

receipt of waiver petitions or, if 

delivered by mail, on the date the 

waiver petition is stamped as received 

by the Department. 

* * * * * 

(h) Duration. (1) Interim waivers 

remain in effect until the earlier of the 

following: 

(i) DOE publishes a decision and 

order on a petition for waiver pursuant 

to paragraph (f) of this section in the 

Federal Register; or 

(ii) DOE publishes in the Federal 

Register a new or amended test 

procedure that addresses the issues 

presented in the waiver. 

(2) Within one year of a determination 

to grant an interim waiver, DOE will 

complete either paragraph (h)(1)(i) or (ii) 

of this section as specified in this 

section. 

(3) When DOE amends the test 

procedure to address the issues 

presented in a waiver, the waiver will 

automatically terminate on the date on 

which use of that test procedure is 

required to demonstrate compliance. 

(i) Compliance certification. (1) If the 

alternate test procedure specified in the 

interim waiver differs from the alternate 

test procedure specified by DOE in a 

subsequent decision and order granting 

the petition for waiver, a manufacturer 

who has already certified basic models 

using the procedure permitted in DOE’s 

grant of an interim test procedure 

waiver is not required to re-test and rerate those basic models so long as: The 

manufacturer used that alternative 

procedure to certify the compliance of 

the basic model after DOE granted the 

company’s interim waiver request; 

changes have not been made to those 

basic models that would cause them to 

use more energy or otherwise be less 

energy efficient; and the manufacturer 

does not modify the certified rating. 

However, if DOE ultimately denies the 

petition for waiver, or if the alternate 

test procedure specified in the interim 

waiver differs from the alternate test 

procedure specified by DOE in a 

subsequent decision and order, DOE 

will provide a period of 180 days before 

the manufacturer is required to use the 

DOE test procedure or the alternate test 

procedure specified in the decision and 

order to make representations of energy 

efficiency. 

* * * * * 

[FR Doc. 2020–26321 Filed 12–10–20; 8:45 am] 

BILLING CODE 6450–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Regulation D; Docket No. R–1733] 

RIN 7100–AG 03 

Reserve Requirements of Depository 

Institutions 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: The Board is amending 

Regulation D, Reserve Requirements of 

Depository Institutions, to reflect the 

annual indexing of the reserve 

requirement exemption amount and the 

low reserve tranche for 2021. The 

annual indexation of these amounts is 

required notwithstanding the Board’s 

action in March 2020 setting all reserve 

requirement ratios to zero. The 

Regulation D amendments set the 

reserve requirement exemption amount 

for 2021 at $21.1 million of reservable 

liabilities (up from 16.9 million in 

2020). The Regulation D amendments 

also set the amount of net transaction 

accounts at each depository institution 

(over the reserve requirement exemption 

amount) that could be subject to a 

reserve requirement ratio of not more 

than 3 percent (and which may be zero) 

in 2021 at $182.9 million (up from 

$127.5 million in 2020). This amount is 

known as the low reserve tranche. The 

adjustments to both of these amounts 

are derived using statutory formulas 

specified in the Federal Reserve Act (the 

‘‘Act’’). The annual indexation of the 

reserve requirement exemption amount 

and low reserve tranche, though 

required by statute, will not affect 

depository institutions’ reserve 

requirements, which will remain zero. 

The Board is also announcing changes 

in two other amounts, the nonexempt 

deposit cutoff level and the reduced 

reporting limit, that are used to 

determine the frequency at which 

depository institutions must submit 

deposit reports. 

DATES: Effective date: January 11, 2021. 

Compliance dates: The new low 

reserve tranche and reserve requirement 

exemption amount will apply to the 

fourteen-day reserve maintenance 

period that begins January 14, 2021. For 

depository institutions that report 

deposit data weekly, this maintenance 

period corresponds to the fourteen-day 

computation period that begins 

December 15, 2020. For depository 

institutions that report deposit data 

quarterly, this maintenance period 

corresponds to the seven-day 

computation period that begins 

December 15, 2020. The new values of 

the nonexempt deposit cutoff level, the 

reserve requirement exemption amount, 

and the reduced reporting limit will be 

used to determine the frequency at 

which a depository institution submits 

deposit reports effective in either June 

or September 2021. 

FOR FURTHER INFORMATION CONTACT: 

Sophia H. Allison, Senior Special 

Counsel (202–452–3565), or Justyna 

Bolter, Senior Attorney (202/452–2686), 

Legal Division, or Kristen Payne, Senior 

Financial Institution and Policy Analyst 

(202–452–2872), or Francis A. Martinez, 

Lead Financial Institution and Policy 

Analyst (202–245–4217), Division of 

Monetary Affairs; for users of 

Telecommunications Device for the Deaf 

(TDD) only, contact (202–263–4869); 

Board of Governors of the Federal 

Reserve System, 20th and C Streets NW, 

Washington, DC 20551. 

SUPPLEMENTARY INFORMATION: Section 

19(b)(2) of the Act (12 U.S.C. 461(b)(2)) 

requires each depository institution to 

maintain reserves against its transaction 

accounts and nonpersonal time 

deposits, as prescribed by Board 

regulations, for the purpose of 

implementing monetary policy. Section 

11(a)(2) of the Act (12 U.S.C. 248(a)(2)) 

authorizes the Board to require reports 

of liabilities and assets from depository 

institutions to enable the Board to 

conduct monetary policy. The Board’s 

actions with respect to each of these 

provisions are discussed in turn below. 

I. Reserve Requirements 

Section 19(b) of the Act authorizes 

different ranges of reserve requirement 

ratios depending on the amount of 

transaction account balances at a 

depository institution. Section 

19(b)(11)(A) of the Act (12 U.S.C. 

461(b)(11)(A)) provides that a zero 

percent reserve requirement ratio shall 

apply at each depository institution to 

total reservable liabilities that do not 

exceed a certain amount, known as the 


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79822 Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations 

1Consistent with Board practice, the low reserve 

tranche and reserve requirement exemption 

amounts have been rounded to the nearest $0.1 

million. 

2Consistent with Board practice, the nonexempt 

deposit cutoff level and the reduced reporting limit 

have been rounded to the nearest $1 million. 

reserve requirement exemption amount. 

Section 19(b)(11)(B) provides that, 

before December 31 of each year, the 

Board shall issue a regulation adjusting 

the reserve requirement exemption 

amount for the next calendar year if 

total reservable liabilities held at all 

depository institutions increase from 

one year to the next. No adjustment is 

made to the reserve requirement 

exemption amount if total reservable 

liabilities held at all depository 

institutions should decrease during the 

applicable time period. The Act requires 

the percentage increase in the reserve 

requirement exemption amount to be 80 

percent of the increase in total 

reservable liabilities of all depository 

institutions over the one-year period 

that ends on the June 30 prior to the 

adjustment. 

Total reservable liabilities of all 

depository institutions increased by 

31.0 percent, from $8,321 billion to 

$10,902 billion, between June 30, 2019, 

and June 30, 2020. Accordingly, the 

Board is amending Regulation D (12 

CFR part 204) to set the reserve 

requirement exemption amount for 2021 

at $21.1 million, an increase of $4.2 

million from its level in 2020.1

Pursuant to Section 19(b)(2) of the Act 

(12 U.S.C. 461(b)(2)), transaction 

account balances maintained at each 

depository institution over the reserve 

requirement exemption amount and up 

to a certain amount, known as the low 

reserve tranche, may be subject to a 

reserve requirement ratio of not more 

than 3 percent (and which may be zero). 

Transaction account balances over the 

low reserve tranche may be subject to a 

reserve requirement ratio of not more 

than 14 percent (and which may be 

zero). Section 19(b)(2) also provides 

that, before December 31 of each year, 

the Board shall issue a regulation 

adjusting the low reserve tranche for the 

next calendar year. The Act requires the 

adjustment in the low reserve tranche to 

be 80 percent of the percentage increase 

or decrease in total transaction accounts 

of all depository institutions over the 

one-year period that ends on the June 30 

prior to the adjustment. 

Net transaction accounts of all 

depository institutions increased 54.3 

percent, from $2,505 billion to $3,866 

billion, between June 30, 2019, and June 

30, 2020. Accordingly, the Board is 

amending Regulation D to set the low 

reserve tranche for net transaction 

accounts for 2021 at $182.9 million, an 

increase of $55.4 million from 2020. 

The new low reserve tranche and 

reserve requirement exemption amount 

will be effective for all depository 

institutions for the fourteen-day reserve 

maintenance period beginning January 

14, 2021. For depository institutions 

that report deposit data weekly, this 

maintenance period corresponds to the 

fourteen-day computation period that 

begins December 15, 2020. For 

depository institutions that report 

deposit data quarterly, this maintenance 

period corresponds to the seven-day 

computation period that begins 

December 15, 2020. 

Effective March 26, 2020, the Board 

reduced reserve requirement ratios on 

all net transaction accounts to zero 

percent, eliminating reserve 

requirements for all depository 

institutions. The annual indexation of 

the reserve requirement exemption 

amount and the low reserve tranche for 

2021 is required by statute but will not 

affect depository institutions’ reserve 

requirements, which will remain zero. 

II. Deposit Reports 

Section 11(b)(2) of the Act authorizes 

the Board to require depository 

institutions to file reports of their 

liabilities and assets as the Board may 

determine to be necessary or desirable 

to enable it to discharge its 

responsibility to monitor and control 

the monetary and credit aggregates. The 

Board screens depository institutions 

each year and assigns them to one of 

four deposit reporting panels (weekly 

reporters, quarterly reporters, annual 

reporters, or nonreporters). The panel 

assignment for annual reporters is 

effective in June of the screening year; 

the panel assignment for weekly and 

quarterly reporters is effective in 

September of the screening year. 

In order to ease reporting burden, the 

Board permits smaller depository 

institutions to submit deposit reports 

less frequently than larger depository 

institutions. The Board permits 

depository institutions with net 

transaction accounts above the reserve 

requirement exemption amount but total 

transaction accounts, savings deposits, 

and small time deposits below a 

specified level (the ‘‘nonexempt deposit 

cutoff’’) to report deposit data quarterly. 

Depository institutions with net 

transaction accounts above the reserve 

requirement exemption amount and 

with total transaction accounts, savings 

deposits, and small time deposits 

greater than or equal to the nonexempt 

deposit cutoff are required to report 

deposit data weekly. The Board requires 

certain large depository institutions to 

report weekly regardless of the level of 

their net transaction accounts if the 

depository institution’s total transaction 

accounts, savings deposits, and small 

time deposits exceeds or is equal to a 

specified level (the ‘‘reduced reporting 

limit’’). The nonexempt deposit cutoff 

level and the reduced reporting limit are 

adjusted annually, by an amount equal 

to 80 percent of the increase, if any, in 

total transaction accounts, savings 

deposits, and small time deposits of all 

depository institutions over the one-year 

period that ends on the June 30 prior to 

the adjustment. 

From June 30, 2019, to June 30, 2020, 

total transaction accounts, savings 

deposits, and small time deposits at all 

depository institutions increased 24.0 

percent, from $13,053 billion to $16,191 

billion. Accordingly, the Board is 

increasing the nonexempt deposit cutoff 

level by $203.5 million to $1.262 billion 

for 2021 (up from $1.058 billion in 

2020). The Board is also increasing the 

reduced reporting limit by $424.6 

million to $2.633 billion for 2021 (up 

from $2.208 billion in 2020).2

Beginning in 2021, the boundaries of 

the four deposit reporting panels will be 

defined as follows. Those depository 

institutions with net transaction 

accounts over $21.1 million (the reserve 

requirement exemption amount) or with 

total transaction accounts, savings 

deposits, and small time deposits 

greater than or equal to $2.633 billion 

(the reduced reporting limit) are subject 

to detailed reporting, and must file a 

Report of Transaction Accounts, Other 

Deposits and Vault Cash (FR 2900 

report) either weekly or quarterly. Of 

this group, those with total transaction 

accounts, savings deposits, and small 

time deposits greater than or equal to 

$1.262 billion (the nonexempt deposit 

cutoff level) are required to file the FR 

2900 report each week, while those with 

total transaction accounts, savings 

deposits, and small time deposits less 

than $1.262 billion are required to file 

the FR 2900 report each quarter. Those 

depository institutions with net 

transaction accounts less than or equal 

to $21.1 million (the reserve 

requirement exemption amount) and 

with total transaction accounts, savings 

deposits, and small time deposits less 

than $2.633 billion (the reduced 

reporting limit) are eligible for reduced 

reporting, and must either file a deposit 

report annually or not at all. Of this 

group, those with total deposits greater 

than $21.1 million (but with total 

transaction accounts, savings deposits, 

and small time deposits less than $2.633 

billion) are required to file the Annual 


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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Rules and Regulations 79823 

3 5 U.S.C. 603 and 604. 4 44 U.S.C. 3506; 5 CFR part 1320. 

Report of Deposits and Reservable 

Liabilities (FR 2910a) report annually, 

while those with total deposits less than 

or equal to $21.1 million are not 

required to file a deposit report. A 

depository institution that adjusts 

reported values on its FR 2910a report 

in order to qualify for reduced reporting 

will be shifted to an FR 2900 reporting 

panel. 

III. Regulatory Analysis 

Administrative Procedure Act 

The provisions of 5 U.S.C. 553(b) 

relating to notice of proposed 

rulemaking have not been followed in 

connection with the adoption of these 

amendments. The amendments involve 

expected, ministerial adjustments 

prescribed by statute and by the Board’s 

policy concerning reporting practices. 

The adjustments in the reserve 

requirement exemption amount, the low 

reserve tranche, the nonexempt deposit 

cutoff level, and the reduced reporting 

limit serve to reduce regulatory burdens 

on depository institutions. Accordingly, 

the Board finds good cause for 

determining, and so determines, that 

notice in accordance with 5 U.S.C. 

553(b) is unnecessary. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.3 As noted previously, 

the Board has determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this final 

rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,4 the Board 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

List of Subjects in 12 CFR Part 204 

Banks, banking, Reporting and 

recordkeeping requirements. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Board is amending 12 

CFR part 204 as follows: 

PART 204—RESERVE 

REQUIREMENTS OF DEPOSITORY 

INSTITUTIONS (REGULATION D) 

■ 1. The authority citation for part 204 

continues to read as follows: 

Authority: 12 U.S.C. 248(a), 248(c), 461, 

601, 611, and 3105. 

■ 2. Section 204.4 is amended by 

revising paragraph (f) to read as follows: 

§ 204.4 Computation of required reserves. 

* * * * * 

(f) For all depository institutions, 

Edge and Agreement corporations, and 

United States branches and agencies of 

foreign banks, required reserves are 

computed by applying the reserve 

requirement ratios in table 1 to this 

paragraph (f) to net transaction 

accounts, nonpersonal time deposits, 

and Eurocurrency liabilities of the 

institution during the computation 

period. 

TABLE 1 TO PARAGRAPH (f) 

Reservable 

liability Reserve requirement 

Net Transaction Accounts:.

$0 to reserve requirement exemption amount ($21.1 million) ........................................................................... 0 percent of amount. 

Over reserve requirement exemption amount ($21.1 million) and up to low reserve tranche ($182.9 million) 0 percent of amount. 

Over low reserve tranche ($182.9 million) ......................................................................................................... $0 plus 0 percent of amount over 

$182.9 million. 

Nonpersonal time deposits ................................................................................................................................ 0 percent. 

Eurocurrency liabilities ....................................................................................................................................... 0 percent. 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Director of the Division of Monetary Affairs 

under delegated authority. 

Ann Misback, 

Secretary of the Board. 

[FR Doc. 2020–27083 Filed 12–10–20; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 1, 61, 101, 107 

[Docket No. FAA–2020–1067; Amdt. Nos. 1– 

73, 61–148, 101–10, 107–6] 

RIN 2120–AL43 

Removal of the Special Rule for Model 

Aircraft 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: This action removes 

regulations codifying the Special Rule 

for Model Aircraft because of a change 

in applicable law. This action also 

makes conforming updates to FAA 

regulations. 

DATES: This rule is effective on 

December 11, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Jonathan W. Cross, Regulations 

Division, Office of the Chief Counsel, 

Federal Aviation Administration, 800 

Independence Avenue SW, Washington, 

DC 20591; telephone 202–267–7173; 

email: jonathan.cross@faa.gov. 

SUPPLEMENTARY INFORMATION: The FAA 

Modernization and Reform Act of 2012, 

Public Law 112–95 (February 14, 2012) 

(FMRA) included a number of 

provisions related to unmanned aircraft 

systems (UAS) operating in the National 

Airspace System (NAS). Section 336 of 

the Act, titled ‘‘Special Rule for Model 

Aircraft,’’ defined ‘‘model aircraft’’ and 

specifically prohibited FAA from 

promulgating a rule or regulation 

regarding model aircraft that were 

operated under certain circumstances. 

That prohibition notwithstanding, 


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