21662 Federal Register / Vol. 77, No. 70 / Wednesday, April 11, 2012 / Rules and Regulations 

7See section 1310.21(a) of the rule. 

8Under section 112(d) of the Dodd-Frank Act, if 

the Council is unable to determine whether a U.S. 

nonbank financial company poses a threat to U.S. 

financial stability based on such information, the 

Council may request that the Board of Governors 

conduct an examination of the nonbank financial 

company to determine whether it should be 

supervised by the Board of Governors. 

9See 12 CFR 1310.21(c). 

10See 12 CFR 1310.21(d)(3), 1310.21(e)(3) and 

1310.22(d)(3). 

to U.S. financial stability. The analytic 

framework consisting of the six categories set 

forth above, and the metrics used to measure 

each of the six categories, will assist the 

Council in assessing the extent to which the 

transmission of material financial distress is 

likely to occur. 

Each nonbank financial company in the 

Stage 3 Pool will receive a notice (a ‘‘Notice 

of Consideration’’) that the nonbank financial 

company is under consideration for a 

Proposed Determination. The Notice of 

Consideration likely will include a request 

that the nonbank financial company provide 

information that the Council deems relevant 

to the Council’s evaluation, and the nonbank 

financial company will be provided an 

opportunity to submit written materials to 

the Council.7 This information will generally 

be collected by the OFR.8 Before requiring 

the submission of reports from any nonbank 

financial company that is regulated by a 

member agency or any primary financial 

regulatory agency, the Council, acting 

through the OFR, will coordinate with such 

agencies and will, whenever possible, rely on 

information available from the OFR or such 

agencies. Council members and their 

agencies and staffs will maintain the 

confidentiality of such information in 

accordance with applicable law. 

Information requests likely will involve 

both qualitative and quantitative data. 

Information relevant to the Council’s analysis 

may include confidential business 

information such as internal assessments, 

internal risk management procedures, 

funding details, counterparty exposure or 

position data, strategic plans, resolvability, 

potential acquisitions or dispositions, and 

other anticipated changes to the nonbank 

financial company’s business or structure 

that could affect the threat to U.S. financial 

stability posed by the nonbank financial 

company. 

In evaluating qualitative factors during 

Stage 3, the Council expects to have access, 

to a greater degree than during earlier stages 

of review, to information relating to factors 

that are not easily quantifiable or that may 

not directly cause a company to pose a threat 

to financial stability, but could mitigate or 

aggravate the potential of a nonbank financial 

company to pose a threat to the United 

States. Such factors may include the opacity 

of the nonbank financial company’s 

operations, its complexity, and the extent to 

which it is subject to existing regulatory 

scrutiny and the nature of such scrutiny. 

The Stage 3 analysis will also include an 

evaluation of a nonbank financial company’s 

resolvability, which may mitigate or 

aggravate the potential of a nonbank financial 

company to pose a threat to U.S. financial 

stability. An evaluation of a nonbank 

financial company’s resolvability entails an 

assessment of the complexity of the nonbank 

financial company’s legal, funding, and 

operational structure, and any obstacles to 

the rapid and orderly resolution of the 

nonbank financial company in a manner that 

would mitigate the risk that the nonbank 

financial company’s failure would have a 

material adverse effect on financial stability. 

In addition to the factors described above, a 

nonbank financial company’s resolvability is 

also a function of legal entity and crossborder operations issues. These factors 

include the ability to separate functions and 

spin off services or business lines; the 

likelihood of preserving franchise value in a 

recovery or resolution scenario, and of 

maintaining continuity of critical services 

within the existing or in a new legal entity 

or structure; the degree of the nonbank 

financial company’s intra-group dependency 

for liquidity and funding, payment operation, 

and risk management needs; and the size and 

nature of the nonbank financial company’s 

intra-group transactions. 

The Council anticipates that the 

information necessary to conduct an in-depth 

analysis of a particular nonbank financial 

company may vary significantly based on the 

nonbank financial company’s business and 

activities and the information already 

available to the Council from existing public 

sources and domestic or foreign regulatory 

authorities. The Council will also consult 

with the primary financial regulatory agency, 

if any, for each nonbank financial company 

or subsidiary of a nonbank financial 

company under consideration in a timely 

manner before the Council makes any final 

determination with respect to such nonbank 

financial company, and with appropriate 

foreign regulatory authorities, to the extent 

appropriate. 

Before making a Proposed Determination, 

the Council intends to notify each nonbank 

financial company in the Stage 3 Pool when 

the Council believes that the evidentiary 

record regarding such nonbank financial 

company is complete. 

Based on the analysis performed in Stages 

2 and 3, a nonbank financial company will 

be considered for a Proposed Determination. 

Before a vote of the Council with respect to 

a particular nonbank financial company, the 

Council members will review information 

relevant to the consideration of the nonbank 

financial company for a Proposed 

Determination. After this review, the Council 

may, by a vote of two-thirds of its members 

(including an affirmative vote of the Council 

Chairperson), make a Proposed 

Determination with respect to the nonbank 

financial company. Following a Proposed 

Determination, the Council intends to issue 

a written notice of the Proposed 

Determination to the nonbank financial 

company, which will include an explanation 

of the basis of the Proposed Determination. 

The Council expects to notify any nonbank 

financial company in the Stage 3 Pool if the 

nonbank financial company, either before or 

after a Proposed Determination of such 

nonbank financial company, ceases to be 

considered for determination. Any nonbank 

financial company that ceases to be 

considered at any time in the Council’s 

determination process may be considered for 

a Proposed Determination in the future at the 

Council’s discretion. 

A nonbank financial company that is 

subject to a Proposed Determination may 

request a nonpublic hearing to contest the 

Proposed Determination in accordance with 

section 113(e) of the Dodd-Frank Act. If the 

nonbank financial company requests a 

hearing in accordance with the procedures 

set forth in § 1310.21(c) of the Council’s 

rule,9 the Council will set a time and place 

for such hearing. The Council will (after a 

hearing, if a hearing is requested), determine 

by a vote of two-thirds of the voting members 

of the Council (including the affirmative vote 

of the Chairperson) whether to subject such 

company to supervision by the Board of 

Governors and prudential standards. The 

Council will provide the nonbank financial 

company with written notice of the Council’s 

final determination, including an explanation 

of the basis for the Council’s decision. When 

practicable and consistent with the purposes 

of the determination process, the Council 

intends to provide a nonbank financial 

company with a notice of a final 

determination at least one business day 

before publicly announcing the 

determination pursuant to § 1310.21(d)(3), 

§ 1310.21(e)(3) or § 1310.22(d)(3) of the 

Council’s rule.10 The Council does not intend 

to publicly announce the name of any 

nonbank financial company that is under 

evaluation for a determination prior to a final 

determination with respect to such company. 

In accordance with section 113(h) of the 

Dodd-Frank Act, a nonbank financial 

company that is subject to a final 

determination may bring an action in U.S. 

district court for an order requiring that the 

determination be rescinded. 

Dated: April 3, 2012. 

Rebecca Ewing, 

Acting Executive Secretary, Department of 

the Treasury. 

[FR Doc. 2012–8627 Filed 4–10–12; 8:45 am] 

BILLING CODE 4810–25–P–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2012–0099; Airspace 

Docket No. 12–ASO–11] 

Amendment of Class D Airspace; 

Cocoa Beach, FL 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule, technical 

amendment. 

SUMMARY: This action amends Class D 

airspace at Cape Canaveral Skid Strip, 

Cocoa Beach, FL, by correcting the 

geographic coordinates of the airport to 

aid in the navigation of our National 

Airspace System and by removing the 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 70 / Wednesday, April 11, 2012 / Rules and Regulations 21663 

reference of St. Petersburg Automated 

Flight Service Station from the 

descriptor. This action enhances the 

safety and management of Instrument 

Flight Rules (IFR) operations for 

standard instrument approach 

procedures at the airport. 

DATES: Effective 0901 UTC, May 31, 

2012. The Director of the Federal 

Register approves this incorporation by 

reference action under title 1, Code of 

Federal Regulations, part 51, subject to 

the annual revision of FAA Order 

7400.9 and publication of conforming 

amendments. 

FOR FURTHER INFORMATION CONTACT: John 

Fornito, Operations Support Group, 

Eastern Service Center, Federal Aviation 

Administration, P.O. Box 20636, 

Atlanta, Georgia 30320; telephone (404) 

305–6364. 

SUPPLEMENTARY INFORMATION: 

History 

The FAA received notice from the 

National Aeronautical Navigation 

Services (NANS) that St. Petersburg 

Automated Flight Service Station has 

closed and its reference should be 

updated in the descriptor of Cape 

Canaveral Skid Strip, Cocoa Beach, FL. 

Also, the geographic coordinates for the 

airport need correcting to coincide with 

the FAAs aeronautical database. 

Class D airspace designations are 

published in Paragraphs 5000, of FAA 

Order 7400.9V dated August 9, 2011, 

and effective September 15, 2011, which 

is incorporated by reference in 14 CFR 

part 71.1. The Class D airspace 

designations listed in this document 

will be published subsequently in the 

Order. 

The Rule 

This amendment to Title 14, Code of 

Federal Regulations (14 CFR) part 71 

amends Class D airspace at Cocoa 

Beach, FL. The geographic coordinates 

of the Cape Canaveral Skid Strip are 

corrected to coincide with the FAAs 

aeronautical database and St. Petersburg 

Automated Flight Service Station will 

be removed from the descriptor. 

Accordingly, since this is an 

administrative change, and does not 

involve a change in the dimensions or 

operating requirements of that airspace, 

notice and public procedures under 5 

U.S.C. 553 (b) are unnecessary. 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current, is non-controversial and 

unlikely to result in adverse or negative 

comments. It, therefore, (1) is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures 

(44 FR 11034; February 26, 1979); and 

(3) does not warrant preparation of a 

Regulatory Evaluation as the anticipated 

impact is so minimal. Since this is a 

routine matter that will only affect air 

traffic procedures and air navigation, it 

is certified that this rule, when 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart I, Section 

40103. Under that section, the FAA is 

charged with prescribing regulations to 

assign the use of airspace necessary to 

ensure the safety of aircraft and the 

efficient use of airspace. This regulation 

is within the scope of that authority as 

it establishes and amends controlled 

airspace at Cape Canaveral Skid Strip, 

Cocoa Beach FL. 

Lists of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g); 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of Federal Aviation 

Administration Order 7400.9V, Airspace 

Designations and Reporting Points, 

dated August 9, 2011, and effective 

September 15, 2011, is amended as 

follows: 

Paragraph 5000 Class D airspace. 

* * * * * 

ASO FL D Cocoa Beach, FL [Amended] 

Cape Canaveral Skid Strip, FL 

(Lat. 28°28′04′′ N., long. 80°34′01′′ W.) 

That airspace extending upward from the 

surface to and including 2,500 feet MSL 

within a 4.4-mile radius of the Cape 

Canaveral Skid Strip. This airspace lies 

within the confines of R–2932 and is 

effective on a random basis. The effective 

days and times are continuously available 

from Miami Automated Flight Service 

Station. 

Issued in College Park, Georgia, on March 

30, 2012. 

Barry A . Knight, 

Manager, Operations Support Group, Eastern 

Service Center, Air Traffic Organization. 

[FR Doc. 2012–8558 Filed 4–10–12; 8:45 am] 

BILLING CODE 4910–13–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R04–OAR–2010–0255; FRL–9657–4] 

Air Quality Implementation Plans; 

Kentucky; Attainment Plan for the 

Kentucky Portion of the HuntingtonAshland 1997 Annual PM2.5

Nonattainment Area 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: EPA is taking final action to 

approve a revision to the Kentucky state 

implementation plan (SIP) submitted by 

the Commonwealth of Kentucky, 

through the Kentucky Energy and 

Environment Cabinet, Division for Air 

Quality (DAQ), to EPA on December 3, 

2008, for the purpose of providing for 

attainment of the 1997 fine particulate 

matter (PM2.5) national ambient air 

quality standards (NAAQS) in the 

Kentucky portion of the HuntingtonAshland, West Virginia-Kentucky-Ohio 

PM2.5 nonattainment area (hereafter 

referred to as the ‘‘Huntington-Ashland 

Area’’ or ‘‘Area’’). The HuntingtonAshland Area is comprised of Boyd 

County and a portion of Lawrence 

County in Kentucky; Cabell and Wayne 

Counties and a portion of Mason County 

in West Virginia; and Lawrence and 

Scioto Counties and portions of Adams 

and Gallia Counties in Ohio. The 

Kentucky plan at issue in this action 

(hereafter referred to as the ‘‘PM2.5

attainment plan’’) pertains only to the 

Kentucky portion of the HuntingtonAshland Area. As proposed on January 

30, 2012, EPA is approving Kentucky’s 

PM2.5 attainment plan, which includes 

an attainment demonstration; 

reasonably available control technology 

(RACT) and reasonably available control 

measures (RACM); reasonable further 


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