41592 Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 

■ d. In paragraph (a)(4), remove the 

word ‘‘nonmovable’’ and add, in its 

place, the words ‘‘non-movable or nonsalable’’, 

■ e. In paragraph (a)(5), introductory 

text, second sentence, remove the word 

‘‘shall’’ and add, in its place, the word 

‘‘will’’, 

■ f. In paragraph (b)(1) remove the word 

‘‘shall’’ both times it appears and add, 

in its place, the word ‘‘must’’, 

■ g. In paragraph (b)(2), remove the 

word ‘‘shall’’ and add, in its place, the 

word ‘‘will’’, 

■ h. In paragraph (c), second sentence, 

remove the word ‘‘shall’’ both times it 

appears and add, in its place, the word 

‘‘must’’ and remove the word 

‘‘borrowers’’ and add, in its place, the 

word ‘‘borrower’s’’ 

■ i. Redesignate paragraph (d) as 

paragraph (e), 

■ j. Add new paragraph (d) to read as set 

forth below, and 

■ k. In redesignated paragraph (e) 

remove the word ‘‘shall’’ and add, in its 

place, the word ‘‘will’’. 

§ 1436.16 Foreclosure, liquidation, 

assumptions, sales or conveyance, or 

bankruptcy. 

* * * * * 

(d) If any significant changes are made 

to the legal or operating status of the 

farming operation with an outstanding 

Farm Storage Facility Loan, the 

borrower must do one of the following: 

(1) Find an eligible borrower or entity 

to assume the loan as specified in 

paragraph (b) of this section, 

(2) Repay the loan, or 

(3) Undergo new financial analysis, as 

approved and determined by CCC, to 

ensure CCC’s interests are protected and 

that the current borrower is in a position 

to continue making the scheduled loan 

payments. 

* * * * * 

1436.19 [Amended] 

■ 18. Amend § 1436.19 as follows: 

■ a. In paragraph (a), first sentence, by 

removing the word ‘‘shall’’ and adding, 

in its place, the word ‘‘will’’ and by 

adding the sentence ‘‘FSFL borrowers 

are subject to the nondiscrimination 

provisions applicable to Federally 

assisted programs contained in 7 CFR 

parts 15 and 15b.’’ at the end and 

■ b. In paragraph (b), by removing the 

words ‘‘national origin, sex, marital 

status, or’’ and adding, in their place, 

the words ‘‘national origin, disability, 

sex, marital status, familial status, 

parental status, sexual orientation, 

genetic information, political beliefs, 

reprisal, or’’ and by adding at the end 

the sentence ‘‘FSFL is subject to the 

nondiscrimination provisions 

applicable to Federally conducted 

programs contained in 7 CFR parts 15d 

and 15e.’’ 

Signed in Washington, DC, on August 11, 

2009. 

Jonathan W. Coppess, 

Executive Vice President, Commodity Credit 

Corporation and Administrator, Farm Service 

Agency. 

[FR Doc. E9–19652 Filed 8–17–09; 8:45 am] 

BILLING CODE 3410–05–P 

DEPARTMENT OF COMMERCE 

Economic Development Administration 

13 CFR Parts 313 and 315 

[Docket No. 090429810–91212–02] 

RIN 0610–AA65 

Revisions to the Trade Adjustment 

Assistance for Firms Program 

Regulations and Implementation 

Regulations for the Community Trade 

Adjustment Assistance Program 

AGENCY: Economic Development 

Administration, Department of 

Commerce. 

ACTION: Final rule. 

SUMMARY: On May 5, 2009, the 

Economic Development Administration 

(‘EDA’) published a notice of proposed 

rulemaking to reflect the amendments 

made to the Trade Act of 1974, as 

amended, by the Trade and 

Globalization Adjustment Assistance 

Act of 2009 (‘TGAAA’), which was 

included as subtitle I within the 

American Recovery and Reinvestment 

Act of 2009. The notice of proposed 

rulemaking provided a public comment 

period from May 5, 2009 through June 

4, 2009. The TGAAA provides that the 

Secretary of Commerce must establish 

the Community Trade Adjustment 

Assistance Program by August 1, 2009, 

under which EDA would provide 

technical assistance under section 274 

of the Trade Act to communities 

impacted by trade to facilitate the 

economic adjustment of those 

communities. The TGAAA amendments 

to the Trade Act took effect on May 17, 

2009, 90 days after enactment. As a 

result of the enactment of the TGAAA, 

EDA promulgates this final rule to 

provide regulations to implement the 

Community Trade Adjustment 

Assistance Program and makes specific 

changes to the Trade Adjustment 

Assistance for Firms Program 

regulations. 

DATES: This rule is effective as of August 

18, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Jamie Lipsey, Attorney Advisor, Office 

of Chief Counsel, Economic 

Development Administration, 

Department of Commerce, Room 7005, 

1401 Constitution Avenue, NW., 

Washington DC 20230; telephone: (202) 

482–4687. 

SUPPLEMENTARY INFORMATION: 

Background 

EDA published a notice of proposed 

rulemaking (the ‘NPRM’) in the Federal 

Register (74 FR 20647) on May 5, 2009. 

The NPRM reflects the amendments 

made to the Trade Act of 1974, as 

amended (19 U.S.C. 2341 et seq.) (the 

‘Trade Act’), by the Trade and 

Globalization Adjustment Assistance 

Act of 2009 (the ‘TGAAA’), which was 

included as subtitle I to the American 

Recovery and Reinvestment Act of 2009 

(Pub. L. 111–5, 123 Stat. 115, at 367). 

The TGAAA authorized the Trade 

Adjustment Assistance for Communities 

(‘Community TAA’) Program and made 

amendments to certain provisions 

affecting the Trade Adjustment 

Assistance for Firms (‘TAAF’) Program, 

which EDA currently administers 

through a network of 11 Universityaffiliated and non-profit Trade 

Adjustment Assistance Centers (each, a 

‘TAAC’) located throughout the nation. 

This final rule promulgates the 

Community TAA Program regulations 

and makes specific changes to the TAAF 

Program regulations, both of which 

implement the amendments to the 

Trade Act made by the TGAAA. It also 

reflects EDA’s current practices and 

policies in administering the TAAF 

Program that have evolved since the 

promulgation of EDA’s current 

regulations. Chapter 3 of title II of the 

Trade Act authorizes the TAAF 

Program, under which technical 

assistance is provided to Firms that 

have lost domestic sales and 

employment due to increased imports of 

similar or competitive goods. Chapter 4 

of title II of the Trade Act establishes the 

Community TAA Program, which is 

designed to help local economies adjust 

to changing trade patterns through the 

coordination of Federal, State, and local 

resources and the creation and 

implementation of community-based 

development strategies to help address 

trade impacts. 

Capitalized terms used but not 

otherwise defined in this final rule have 

the meanings ascribed to them in EDA’s 

regulations set out in 13 CFR chapter III 

(see, e.g., 13 CFR 300.3, 303.2, 315.2, 

and 315.15). A complete discussion of 

the changes made to EDA’s regulations 

was provided in the NPRM and is not 

repeated here. 


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Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 41593 

Response to Comments 

A 31-day public comment period, 

from May 5, 2009 through June 4, 2009, 

followed the publication of the NPRM. 

EDA received a small number of public 

comments on different portions of the 

NPRM. All comments received, which 

were from the Directors of three TAACs, 

related to the TAAF Program. EDA did 

not receive any comments related to the 

Community TAA Program. A summary 

of the comments and EDA’s response 

are provided below. 

Section 315.2—Definitions 

EDA received one comment from the 

Director of the Rocky Mountain TAAC 

that stated the following: ‘‘The 

definition of ‘Absolutely’ has been 

determined by EDA to mean five 

percent. This is an arbitrary number that 

the TAACs at times have been told is no 

longer valid. The intended result is to 

only accept firms that are truly 

impacted. The actual result is usually 

several months’ delay in assistance for 

the firm until sales and employment 

declines enough to satisfy the five 

percent decline. This delay causes 

unnecessary hardship to the firm. 

‘Absolutely’ should not be defined in 

this document, but be determined on a 

case-by-case basis, which is customary 

with other similar definitions like 

‘significant,’ which is purposely not 

defined.’’ 

The proposed revision to the 

definition of ‘Decreased Absolutely’ 

does not in any way alter the meaning 

of the term ‘Decreased Absolutely’ or 

EDA’s current administration of the 

TAAF Program. EDA replaced the word 

‘irrespective’ in paragraph (1) with the 

word ‘independent’ for increased clarity 

and ease of understanding. Although the 

NPRM did not propose a revision to the 

provision of the definition that the 

commenter addresses, EDA has 

reviewed the comment and addresses it 

here. Requiring a Firm to show at least 

a five percent decline in sales and 

employment to be eligible for assistance 

under the TAAF Program is consistent 

with the need to marshal limited TAAF 

Program resources. In EDA’s experience, 

the five percent minimum threshold 

helps to ensure that import-impacted 

Firms receive limited program 

resources. 

However, EDA recognizes that Firms’ 

situations differ, and there are instances 

when an import impact will not 

manifest as such a quantifiable decline. 

Accordingly, EDA provided case-bycase flexibility in the interim final 

regulations published in the Federal 

Register on October 22, 2008 (73 FR 

62858). In the October 22, 2008 interim 

final rule, EDA revised the definitions of 

Decreased Absolutely and ‘Significant 

Number or Proportion of Workers,’ 

which requires eligible Firms to 

demonstrate a workforce decline of at 

least five percent, to include the phrase, 

‘‘unless EDA determines that these 

limitations in a given case would not be 

consistent with the purposes of the 

Trade Act.’’ This added language 

provides for the threshold five percent, 

but allows for case-by-case flexibility 

when the threshold may be unduly 

restrictive. In practice, the revised 

definitions have been effective to avoid 

unjust denials and efficiently use 

limited program financial and staff 

resources. 

EDA received the following comment 

from the Director of the Northwest 

TAAC regarding the proposed definition 

of ‘Increase in Imports,’ which was 

revised to include a discussion of the 

type of evidence EDA may consider in 

determining whether an Increase in 

Imports has occurred in a particular 

case. The proposed revision adds the 

new requirement from section 1863 of 

the TGAAA to permit EDA to determine 

that an Increase in Imports exists if 

customers accounting for a significant 

percentage of the decline in a Firm’s 

sales or production certify that their 

purchases of imported ‘Like Articles or 

Services’ have increased absolutely or 

relative to the acquisition of such Like 

Articles or Services from suppliers in 

the United States. The commenter 

stated: ‘‘EDA’s use of the word 

‘certification’ in this paragraph on the 

definition of Increase in Imports is 

confusing. If what is meant is some sort 

of ‘writing’ from the customer of the 

petitioning firm then EDA is 

misconstruing the intent of Congress. To 

require such a ‘writing’ from a customer 

will make it almost impossible to use 

this method to show an increase in 

imports. Customers are very reluctant to 

admit they are purchasing imports out 

of fear there will be some sort of 

retribution placed upon them. Congress 

did not intend to make certification of 

service firms more difficult than 

manufacturing firms. (See section 288 of 

the Act ‘sense of Congress.’) Since there 

are no HTS statistics for service imports, 

customer verification will be the 

primary method. However, to require a 

‘writing’ in order for a customer to 

‘certify’ their purchase of imports will 

not work. Besides, the petitioning firm, 

the petition preparer and the TAAC 

director already give their assurance as 

to the accuracy and completeness of the 

petition.’’ 

EDA believes that the amendment 

made by section 1863 of the TGAAA 

requires a written customer certification 

in certain circumstances. The revised 

definition of Increase in Imports 

implements section 251 of the Trade 

Act, as amended by section 1863 of the 

TGAAA, to provide that certification by 

a Firm’s customers of increased imports 

to the Secretary is a method by which 

EDA may determine the existence of an 

Increase in Imports. Previously, the 

method to determine whether an 

Increase in Imports had occurred was 

left to the Secretary’s discretion, and 

EDA used a combination of Harmonized 

Tariff Schedule (‘HTS’) data and the 

TAAC’s interviews of the Firm’s 

customers. This dual information 

gathering helps demonstrate import 

impacts on two levels: using HTS data 

helps show overall import trends in a 

manufacturing Firm’s market, while 

customer interviews provide 

confirmation of trade impacts at the 

local level. The HTS comprises a 

hierarchical structure that classifies 

goods into specific ‘buckets’ using 

criteria such as name, use, and material 

used in a good’s description. Using HTS 

data works well for manufacturing 

companies because the goods that are 

produced allow such Firms to fit within 

a specific HTS ‘bucket,’ and the trend 

data can be readily accessed. To 

understand the local forces affecting a 

Firm, the TAAC interviews the Firm’s 

customers. 

However, HTS data for a ‘Service 

Sector Firm’ is extremely broad and 

does not allow for such a snapshot, 

which makes it infeasible as a method 

to assess import trends for Service 

Sector Firms. Other reliable data for 

assessing how imports affect service 

sector industries do not yet exist to 

provide information on import trends 

within a given Service Sector Firm’s 

market. The TGAAA specifies the 

customer certification method to 

address this lack of industry data and 

provide a reliable method to assess the 

import impact(s). The plain meaning of 

‘certify’ is to make a formal 

acknowledgment, and such certification 

must be in writing. 

The commenter also expressed 

concern that customers will be ‘‘very 

reluctant to admit they are purchasing 

imports out of fear there will be some 

sort of retribution placed on them.’’ As 

far as EDA is aware, information 

obtained from a Firm’s customers and 

others has never been and will not be 

used for any other purpose than to make 

the required eligibility determinations 

in order to certify a Firm under the 

TAAF Program. 

The commenter noted that a written 

certification contravenes the ‘Sense of 

Congress’ expressed in the Trade Act, as 

amended by the TGAAA. EDA intends 


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41594 Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 

to apply the provisions of chapter 3 of 

the Trade Act with the utmost regard to 

Firms, but it also must comply with the 

directly expressed requirements of the 

TGAAA, which specify customer 

certifications to the Secretary. EDA is 

construing the provision narrowly and 

making its application minimally 

burdensome. For example, a customer 

certification will be required only to 

certify: (i) A manufacturing Firm when 

the applicable HTS data does not show 

an Increase in Imports; and (ii) Service 

Sector Firms until applicable HTS data 

become available. Also, EDA will accept 

customer certifications by email. 

Finally, the commenter indicated that 

requiring customer certification is 

redundant since the Firm and the TAAC 

already certify to the accuracy and 

completeness of a petition. EDA notes 

that this requirement comes directly 

from the statute, as section 1863 of the 

TGAAA specifies that ‘‘customers 

accounting for a significant percentage 

of the decrease in the sales or 

production of the firm’’ must ‘‘certify to 

the Secretary that such customers have 

increased their imports of such articles 

or services from a foreign country.’’ 

Section 315.6—Firm Eligibility for 

Adjustment Assistance 

EDA received one comment from the 

Director of the Midwest TAAC 

requesting clarification on existing Firm 

matching share requirements as set out 

in section 315.6(c)(2)(i). The comment 

states the following: ‘‘Does section 

315.6(b)(2)(i) remove the $150,000 cap 

on total AP requests?’’ 

The NPRM did not propose changes 

to this provision, however, EDA 

reviewed and addresses the question 

here. After a Firm is certified as eligible 

for assistance under the TAAF Program, 

the Firm must develop an EDAapproved Adjustment Proposal, which 

is a strategy document designed to map 

out a path for the Firm’s recovery. In an 

effort to marshal limited resources, 

EDA’s general policy is to limit the 

amount of Federal assistance provided 

under the Adjustment Proposal to 

$150,000, which consists of $75,000 in 

EDA funds and $75,000 in Firm 

matching funds. EDA does not 

contemplate raising the $150,000 cap at 

this time. 

Section 315.7—Certification 

Requirements 

EDA received one comment from the 

Director of the Rocky Mountain TAAC 

on the existing interim sales or 

production decline Firm certification 

option, which was relocated, but not 

substantively amended by the NPRM 

and is set out in section 315.7(4). The 

comment stated: ‘‘The six month 

interim decline is useful, but not 

responsive enough to deal with a firm 

facing a rapid decline. A three month 

interim decline would provide for more 

timely assistance, and minimize 

unnecessary hardship to the firm.’’ 

The NPRM did not propose a revision 

to this provision, however, EDA has 

reviewed and addresses the comment in 

this final rule. EDA assumes that the 

commenter is referring to the interim 

sales or production and employment 

decline certification options in EDA’s 

current regulations, which allow a Firm 

to pursue certification without at least a 

year of data showing sales or production 

and employment decline. The interim 

decline options are a regulatory rule; 

they are not statute-based. The addition 

of the interim decline options to the 

TAAF Program regulations was based 

on EDA’s interpretation of the Trade 

Act’s language and intent regarding the 

threat of employment separation and 

the need to provide proactive assistance. 

EDA extrapolated that since the Trade 

Act also focuses on the threat of harm, 

if a Firm can show a precipitous decline 

over six months, then it is a reasonable 

assumption that the pattern may 

continue. 

Although the interim decline options 

are not statute-derived, Congress has 

consistently appropriated the TAAF 

Program with those options in place. 

EDA does not believe that three months 

provide enough data to reasonably 

foresee a sales or production and 

employment decline, and does not 

believe cutting the interim decline 

options in half to three months will 

provide optimal program results. 

Section 315.8—Processing Petitions for 

Certifications 

EDA received two similar comments 

from the Directors of the Rocky 

Mountain and Northwest TAACs on the 

proposed revision to section 315.8, 

which provides that EDA has 40 days 

instead of 60 days from the date EDA 

accepts a petition to make a certification 

determination to implement section 

251(d) of the Trade Act, as amended by 

section 1867 of the TGAAA. The 

commenters stated: ‘‘This section 

should contain a maximum number of 

days from receipt of a petition by EDA 

to ‘accept’ the petition for processing. 

To allow EDA an unlimited time to 

‘accept’ a petition defeats the intent of 

Congress to only allow 40 days for EDA 

to make a determination to certify or 

reject the petition. (see section 288 of 

Act).’’ 

In practice, many petitions that are 

submitted to EDA are incomplete or 

otherwise deficient in some manner. 

EDA has allowed and continues to allow 

the TAACs to informally submit a 

petition and works with the TAAC to 

resolve any deficiencies. After all 

deficiencies have been resolved, EDA 

accepts the petition, which starts the 

certification determination clock. EDA 

believes that automatically accepting all 

petitions will result in a higher rate of 

petition denials. Once a petition has 

been denied, the petitioning Firm must 

wait for one year from the date of denial 

before re-applying. Although EDA may 

waive the one-year limitation for good 

cause, EDA believes that the flexibility 

of the current system best serves the 

interests of Firms. This flexibility allows 

EDA to more effectively achieve the 

Congressional intent, which is to assist 

trade-impacted Firms with a minimum 

of delay and administrative burden. 

Firms likely to suffer the greatest tradeinduced stress may have difficulty 

responding expeditiously to requests for 

clarification or to provide 

documentation and are most likely to 

exceed a hard and fast 40-day limit. The 

new regulations should not impose new 

response demands on already stressed 

Firms. 

Section 315.10—Loss of Certification 

Benefits 

EDA received the following comment 

from the Director of the Northwest 

TAAC on proposed section 315.10(d), 

which was revised to reflect EDA’s 

current practice that a Certified Firm 

has five, not two, years from the date 

upon which EDA approves an 

Adjustment Proposal to complete work 

on the Adjustment Proposal: ‘‘There 

should be a subpart ‘(e)’. This subpart 

(e) should state a firm has five years 

from the date their AP is approved to 

complete all parts of the 

implementation as found within its AP, 

without approval from EDA for going 

beyond this five year period to 

implement all aspects of the approved 

AP. This would put these regulations in 

compliance with what is actually 

occurring at the present time.’’ 

EDA believes that the proposed 

revision reflects current practice and 

that another subpart is not necessary. 

Changes From the NPRM 

After publication of the NPRM, EDA 

discovered that the proposed revisions 

to the Firms’ 24- or 36-month sales 

decline certification requirements, set 

out in section 315.7(b)(2) and (3), do not 

reflect the ‘average annual’ language as 

provided in section 251 of the Trade 

Act, as amended by section 1862 of the 

TGAAA. Therefore, in this final rule, 

EDA revises section 315.7 to include the 

‘average annual’ language, thereby 


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Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 41595 

succeeding and nullifying the revision 

proposed in the NPRM. 

Classification 

Prior notice and opportunity for 

public comment are not required for 

rules concerning public property, loans, 

grants, benefits, and contracts (5 U.S.C. 

553(a)(2)). In the alternative, EDA finds 

good cause under 5 U.S.C. 553(d)(3) to 

waive the 30-day delay in effectiveness. 

EDA is required by the Trade and 

Globalization Adjustment Assistance 

Act of 2009, which was included as 

subtitle I within the American Recovery 

and Reinvestment Act of 2009 (Pub. L. 

111–5, 123 Stat. 115, at 401), to 

implement these regulations by August 

1, 2009. If this rulemaking was delayed 

to allow for a 30-day delay in 

effectiveness, EDA would not be able to 

meet its statutory requirement. 

Therefore, in order to make these 

regulations effective before August 1, 

2009, EDA waives the 30-day in 

effectiveness and makes this rule 

effective immediately. 

Because prior notice and an 

opportunity for public comment are not 

required pursuant to 5 U.S.C. 553, or 

any other law, the analytical 

requirements of the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) are 

inapplicable. Therefore, a regulatory 

flexibility analysis has not been 

prepared. 

Paperwork Reduction Act 

This final rule contains collection-ofinformation requirements subject to the 

Paperwork Reduction Act (‘PRA’). In 

regard to the Community TAA Program, 

the Office of Management and Budget 

(‘OMB’) has approved the use of Form 

ED–900 (‘Application for Investment 

Assistance’) under Control Number 

0610–0094. Form SF–424 (‘Application 

for Federal Assistance’) is approved 

under OMB Control Number 4040–0004. 

To estimate burden, EDA examined its 

experience with its public works and 

economic adjustment assistance 

programs, which are authorized under 

the Public Works and Economic 

Development Act of 1965, as amended 

(42 U.S.C. 3121 et seq.) (‘PWEDA’). The 

potential demand for programs under 

PWEDA is, of course, much greater 

because eligibility is based on general 

economic distress and is not restricted 

to trade impact. EDA estimates that 

demand from trade-impacted areas 

would constitute a small fraction of all 

areas experiencing economic distress. 

Nonetheless, to a certain extent, demand 

will be elastic depending on the amount 

of appropriations Congress and the 

President approve for the Community 

TAA Program. Because the respondent 

burden will be similar for applications 

under the Community TAA Program as 

it is for applications under EDA’s 

traditional programs, if the Community 

TAA Program is funded at its authorized 

level of $150,000,000, EDA estimates 

that it may receive about 350 responses 

for a petition for affirmative 

determination and 300 responses for an 

implementation grant. EDA estimates 

that the total annual paperwork burden 

for a petition for affirmative 

determination would be about 550 

hours and the total annual paperwork 

burden for an implementation grant 

application would be about 6,500 hours. 

In regard to the TAAF Program, the use 

of Form ED–840P (‘Petition by a Firm 

for Certification of Eligibility to Apply 

for Trade Adjustment Assistance’) has 

been approved by OMB under Control 

Number 0610–0091. In light of the 

expansion of the TAAF Program to 

Service Sector Firms and the expansion 

of the ‘look back’ periods, EDA 

estimates the number of respondents 

who complete petitions for a 

certification of eligibility will increase 

more than 100 percent to about 500 

respondents and that the total annual 

paperwork burden would be about 4,100 

hours. 

Notwithstanding any other provision 

of the law, no person is required to 

respond to, nor shall any person be 

subject to a penalty for failure to comply 

with, a collection of information subject 

to the requirements of the PRA, unless 

that collection of information displays a 

currently valid OMB Control Number. 

Executive Order No. 12866 

It has been determined that this final 

rule is significant for purposes of 

Executive Order 12866. 

Congressional Review Act 

This final rule is not ‘major’ under the 

Congressional Review Act (5 U.S.C. 801 

et seq.). 

Executive Order No. 13132 

Executive Order 13132 requires 

agencies to develop an accountable 

process to ensure ‘‘meaningful and 

timely input by State and local officials 

in the development of regulatory 

policies that have federalism 

implications.’’ ‘‘Policies that have 

federalism implications’’ is defined in 

Executive Order 13132 to include 

regulations that have ‘‘substantial direct 

effects on the States, on the relationship 

between the national government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government.’’ It has 

been determined that this final rule does 

not contain policies that have 

federalism implications. 

List of Subjects 

13 CFR Part 313 

Trade adjustment assistance for 

communities, Impacted community, 

Petition and affirmative determination 

requirements, Strategic plan, 

Implementation grant. 

13 CFR Part 315 

Administrative practice and 

procedure, Trade adjustment assistance, 

Eligible petitioner, Firm selection, 

Certification requirements, 

Recordkeeping and audit requirements, 

Adjustment proposals. 

Regulatory Text 

■ For reasons stated in the preamble, 

EDA amends chapter III of title 13 of the 

Code of Federal Regulations to add new 

part 313 and to amend part 315 as 

follows: 

■ 1. Add part 313 to read as follows: 

PART 313—COMMUNITY TRADE 

ADJUSTMENT ASSISTANCE 

Subpart A—General Provisions 

Sec. 

313.1 Purpose and scope. 

313.2 Definitions. 

Subpart B—Participation in the Community 

Trade Adjustment Assistance Program 

313.3 Overview of Community Trade 

Adjustment Assistance. 

313.4 Affirmative determinations. 

313.5 Technical assistance. 

313.6 Strategic Plans. 

313.7 Implementation grants for Impacted 

Communities. 

313.8 Competitive process. 

Subpart C—Administrative Provisions 

313.9 Records. 

313.10 Conflicts of interest. 

313.11 Other requirements. 

Authority: 19 U.S.C. 2341 et seq., as 

amended by Division B, Title I, Subtitle I, 

Part II of Pub. L. 111–5; 42 U.S.C. 3211; 

Department of Commerce Organizational 

Order 10–4. 

Subpart A—General Provisions 

§ 313.1 Purpose and scope. 

The regulations in this part set forth 

the responsibilities of the Secretary of 

Commerce under chapter 4 of title II of 

the Trade Act concerning Community 

Trade Adjustment Assistance 

(‘Community TAA’). The Community 

TAA Program is designed to assist 

Communities impacted by trade with 

economic adjustment through the 

coordination of Federal, State, and local 

resources, the creation of communitybased development strategies, and the 


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41596 Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 

development and provision of programs 

that meet the training needs of workers. 

The statutory authority and 

responsibilities of the Secretary of 

Commerce relating to Community TAA 

are delegated to EDA. EDA certifies 

Communities as eligible to apply for 

assistance under the Community TAA 

Program, provides technical assistance 

to Impacted Communities, and provides 

implementation assistance to Impacted 

Communities in preparing and carrying 

out Strategic Plans. 

§ 313.2 Definitions. 

In addition to the defined terms set 

forth in § 300.3 of this chapter, the terms 

used in this part shall have the 

following meanings: 

Agricultural Commodity Producer has 

the same meaning given to that term in 

title II, chapter 6, section 291 of the 

Trade Act. 

Community Adjustment Assistance 

means technical and implementation 

assistance provided to an Impacted 

Community under chapter 4 of title II of 

the Trade Act. 

Community means a city, county, or 

other political subdivision of a State or 

a consortium of political subdivisions of 

a State. 

Cognizable Certification means a 

certification: 

(1) By the Secretary of Labor that a 

group of workers in the Community is 

eligible to apply for assistance under 

chapter 2, section 223 of the Trade Act; 

(2) By the Secretary of Commerce that 

a Certified Firm (as defined at § 315.2 of 

this chapter) located in the Community 

is eligible to apply for Adjustment 

Assistance in accordance with chapter 

3, sections 251–253 of the Trade Act; or 

(3) By the Secretary of Agriculture 

that a group of Agricultural Commodity 

Producers in the Community is eligible 

to apply for assistance under chapter 6, 

section 293 of the Trade Act. 

Impacted Community means a 

Community that is affected by trade to 

such a degree that the Secretary has 

made an affirmative determination that 

it is eligible to apply for assistance 

under this part. 

Strategic Plan means an Impacted 

Community’s plan for improving its 

economic situation developed in 

accordance with § 313.6. 

Subpart B—Participation in the 

Community Trade Adjustment 

Assistance Program 

§ 313.3 Overview of Community Trade 

Adjustment Assistance. 

The Community TAA Program is 

designed to assist Communities 

impacted by trade to adjust to that 

impact. The Community TAA Program 

will be administered in accordance with 

the following process: 

(a) Determination of eligibility. First, 

EDA must make an affirmative 

determination that the Community is 

impacted by trade in accordance with 

§ 313.4. 

(b) Provision of technical assistance. 

After an affirmative determination is 

made, EDA will provide the Impacted 

Community with technical assistance in 

accordance with § 313.5. 

(c) Strategic Plan development. An 

Impacted Community that intends to 

apply for an implementation grant in 

accordance with § 313.7 must develop, 

in accordance with § 313.6, an EDAapproved Strategic Plan. 

(d) Implementation grant. In 

accordance with § 313.7, EDA may 

award an implementation grant to assist 

an Impacted Community in carrying out 

a project or program included in a 

Strategic Plan. 

§ 313.4 Affirmative determinations. 

(a) General. Subject to the availability 

of funds, a Community may apply for an 

affirmative determination if: 

(1) On or after August 1, 2009, one or 

more Cognizable Certifications are made 

with respect to the Community; and 

(2) The Community submits the 

petition at least 180 days after the date 

of the most recent Cognizable 

Certification. 

(b) Grandfathered Communities. If 

one or more Cognizable Certifications 

were made with respect to a Community 

on or after January 1, 2007, and before 

August 1, 2009, the Community may 

submit a petition to EDA for an 

affirmative determination under this 

section not later than February 1, 2010. 

(c) Affirmative determination petition 

requirements. (1) The Community must 

submit a complete petition to the 

applicable regional office (or regional 

offices in the event the Community 

crosses multiple geographic boundaries) 

serving the geographic area in which the 

Community is located. A complete 

petition for an affirmative determination 

shall contain the following: 

(i) The ‘Application for Federal 

Assistance’ (Form SF–424) that contains 

such information to allow EDA to 

determine that the petitioning 

Community is significantly affected by 

the threat to, or the loss of, jobs 

associated with one or more Cognizable 

Certifications; 

(ii) The applicable Cognizable 

Certification(s) upon which the 

Community bases its petition; and 

(iii) Such other information as EDA 

considers material. 

(2) The petition for affirmative 

determination must contain information 

about the impact(s) on the Community 

from the actual or threatened loss of jobs 

attributable to trade that led to the 

applicable Cognizable Certification(s) 

made by the Secretaries of Labor, 

Commerce or Agriculture, in order for 

EDA to determine that the Community 

is significantly affected. EDA shall 

measure such impact(s) using the 

petitioning Community’s most recent 

Civilian Labor Force statistics as 

reported by the Bureau of Labor 

Statistics, U.S. Department of Labor, 

effective at the time of petition for 

affirmative determination. EDA will 

obtain the applicable Cognizable 

Certification from publicly available 

resources. However, a petitioning 

Community may also provide copies of 

the applicable Cognizable Certification 

to EDA. 

(d) Notification to Community. Upon 

making an affirmative determination, 

EDA shall notify promptly the 

Community and the Governor of the 

State in which the Community is 

located of the means for obtaining 

assistance under this part and other 

appropriate economic assistance that 

may be available to the Community. 

Such notification will identify the 

appropriate EDA regional office that 

will provide technical assistance under 

§ 313.5. 

§ 313.5 Technical assistance. 

(a) General. Once EDA has made an 

affirmative determination that a 

Community is an Impacted Community 

and subject to the availability of funds, 

EDA shall provide comprehensive 

technical assistance to: 

(1) Diversify and strengthen the 

economy in the Impacted Community; 

(2) Identify significant impediments 

to economic development that result 

from the impact of trade on the 

Impacted Community; and 

(3) Develop or update a Strategic Plan 

in accordance with § 313.6 to address 

economic adjustment and workforce 

dislocation in the Impacted Community, 

including unemployment among 

agricultural commodity producers. 

(b) Coordination of Federal response. 

EDA will coordinate the Federal 

response to an Impacted Community by: 

(1) Identifying Federal, State, and 

local resources that are available to 

assist the Impacted Community in 

responding to economic distress; and 

(2) Assisting the Impacted 

Community in accessing available 

Federal assistance and ensuring that 

such assistance is provided in a 

targeted, integrated manner. 


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§ 313.6 Strategic Plans. 

(a) General. An Impacted Community 

that intends to apply for a grant for 

implementation assistance under 

§ 313.7 shall develop and submit a 

Strategic Plan to EDA for evaluation and 

approval. EDA shall evaluate the 

Strategic Plan based on the technical 

requirements set forth in paragraph (c) 

of this section. 

(b) Involvement of private and public 

entities. To the extent practicable, an 

Impacted Community shall consult with 

the following entities in developing a 

Strategic Plan: 

(1) Federal, local, county, or State 

government agencies serving the 

Impacted Community; 

(2) Firms, as defined in § 315.2 of this 

chapter, including small- and mediumsized Firms, within the Impacted 

Community; 

(3) Local workforce investment boards 

established under section 117 of the 

Workforce Investment Act of 1998 (29 

U.S.C. 2832); 

(4) Labor organizations, including 

State labor federations and labormanagement initiatives, representing 

workers in the Impacted Community; 

and 

(5) Educational institutions, local 

educational agencies, or other training 

providers serving the Impacted 

Community. 

(c) Technical requirements. EDA shall 

evaluate the Strategic Plan based on the 

following minimum requirements: 

(1) An analysis of the capacity of the 

Impacted Community to achieve 

economic adjustment to the impact(s) of 

trade; 

(2) An analysis of the economic 

development challenges and 

opportunities facing the Impacted 

Community as well as the strengths, 

weaknesses, opportunities, and threats 

facing the Impacted Community; 

(3) An assessment of the commitment 

of the Impacted Community to the 

Strategic Plan over the long term and 

the participation and input of members 

of the Community affected by economic 

dislocation, including how the Strategic 

Plan will be integrated effectively with 

one or more applicable Comprehensive 

Economic Development Strategies 

(‘CEDS’) that have been developed in 

connection with EDA’s economic 

development assistance programs as set 

out at § 303.7 of this chapter; 

(4) A description of the role and the 

participation of the entities described in 

paragraph (b) of this section in 

developing the Strategic Plan; 

(5) A description of the projects to be 

undertaken by the Impacted Community 

under its Strategic Plan and how such 

projects will facilitate the Impacted 

Community’s economic adjustment; 

(6) A description of the educational 

and training programs available to 

workers in the Impacted Community 

and the future employment needs of the 

Community; 

(7) An assessment of the cost of 

implementing the Strategic Plan, 

including the timing of funding required 

by the Impacted Community to 

implement the Strategic Plan and the 

method of financing to be used to 

implement the Strategic Plan; and 

(8) A strategy for continuing the 

economic adjustment of the Impacted 

Community after the completion of the 

projects described in paragraph (c)(5) of 

this section. 

(d) Cost sharing limitation. Assistance 

awarded to an Impacted Community to 

develop a Strategic Plan under this 

section shall not exceed 75 percent of 

the cost of developing the Strategic 

Plan. In order to provide funding to as 

many merit-worthy Impacted 

Communities as feasible, EDA may base 

the amount of the Community’s 

required share on the relative distress 

caused by the actual or threatened 

decline in the most recent Civilian 

Labor Force statistics effective on the 

date EDA receives an application to 

develop a Strategic Plan. 

§ 313.7 Implementation grants for 

Impacted Communities. 

(a) General. EDA may provide 

assistance in the form of a grant under 

this section to an Impacted Community 

to help the Community carry out a 

project or program that is included in a 

Strategic Plan developed in accordance 

with § 313.6. Such assistance may 

include: 

(1) Infrastructure improvements, such 

as site acquisition, site preparation, 

construction, rehabilitation and 

equipping of facilities; 

(2) Market or industry research and 

analysis; 

(3) Technical assistance, including 

organizational development such as 

business networking, restructuring or 

improving the delivery of business 

services, or feasibility studies; 

(4) Public services; 

(5) Training; and 

(6) Other activities justified by the 

Strategic Plan that satisfy applicable 

statutory and regulatory requirements. 

(b) Application evaluation criteria. (1) 

An Impacted Community that seeks to 

receive an implementation grant under 

this section shall submit a completed 

‘Application for Federal Assistance’ 

(Form ED–900 or any successor form) to 

the applicable regional office (or 

regional offices in the event the 

Community crosses multiple geographic 

boundaries) serving the geographic area 

in which the Community is located. A 

complete application also shall include: 

(i) The EDA-approved Strategic Plan 

that meets the requirements of § 313.6; 

and 

(ii) A description of the project or 

program included in the Strategic Plan 

with respect to which the Impacted 

Community seeks assistance. 

(2) EDA will evaluate all applications 

for the feasibility of the budget 

presented and conformance with 

statutory and regulatory requirements. 

EDA also will consider the degree to 

which an implementation grant in the 

Impacted Community will satisfy the 

evaluation criteria set forth in the 

applicable FFO announcement. 

(c) Coordination among grant 

programs. If an entity in an Impacted 

Community seeks or plans to seek a 

Community College and Career Training 

Grant under section 278 of the Trade 

Act or a Sector Partnership Grant under 

section 279A of the Trade Act while the 

Impacted Community seeks assistance 

under this section, the Impacted 

Community shall include in the 

application for assistance a description 

of how the Impacted Community will 

integrate any projects or programs 

carried out using assistance provided 

under this section with any projects or 

programs that may be implemented with 

other Federal assistance. 

(d) Cost sharing requirement. (1) If an 

Impacted Community is awarded an 

implementation grant under this 

section, the following requirements 

shall apply: 

(i) Federal share. The Federal share of 

a project or program for which a grant 

is awarded may not exceed 95 percent 

of the cost of implementing the project 

or program; and 

(ii) Community’s share. The Impacted 

Community must contribute at least five 

percent of the amount of the 

implementation grant towards the cost 

of implementing the project or program 

for which the grant is awarded. 

(2) In order to provide funding to as 

many merit-worthy Impacted 

Communities as feasible, EDA may base 

the amount of the Community’s 

required share on the relative distress 

caused by the actual or threatened 

decline in the most recent Civilian 

Labor Force statistics effective on the 

date EDA receives an application for an 

implementation grant. 

(e) Limitation. An Impacted 

Community may not be awarded more 

than $5,000,000 in implementation 

grant assistance under this section. 


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41598 Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 

§ 313.8 Competitive process. 

(a) Applications for assistance to 

develop a Strategic Plan or for an 

implementation grant shall be reviewed 

by EDA in accord with a competitive 

process as set forth in the applicable 

FFO, to ensure that EDA awards funds 

to the most merit-worthy projects. 

(b) Priority for grants to small- and 

medium-sized Communities. EDA shall 

give priority to an application submitted 

under this part by an Impacted 

Community that is a small- or mediumsized Community. 

(c) Supplement, not supplant. The 

Community TAA Program and any 

funds appropriated to implement its 

provisions shall be used to supplement 

and not supplant other Federal, State, 

and local public funds expended to 

provide economic development 

assistance for Communities. 

Subpart C—Administrative Provisions 

§ 313.9 Records. 

Communities that receive assistance 

under this part are subject to the records 

requirements set out in § 302.14 of this 

chapter. 

§ 313.10 Conflicts of interest. 

Communities that receive assistance 

under this part are subject to the 

conflicts of interest provisions as set out 

in § 302.17 of this chapter. 

§ 313.11 Other requirements. 

Communities that receive assistance 

under this part are subject to the general 

terms and conditions for Investment 

Assistance set out in part 302 of this 

chapter relating to requirements 

involving the environment (§ 302.1); 

post-disaster assistance (§ 302.2); public 

information (§ 302.4); relocation 

assistance and land acquisition 

(§ 302.5); Federal policies and 

procedures (§ 302.6); amendments and 

changes to awards (§ 302.7); preapproval costs (§ 302.8); 

intergovernmental project reviews 

(§ 302.9); attorneys’ and consultants’ 

fees or the employment of expediters 

(§ 302.10); EDA’s economic 

development information clearinghouse 

(§ 302.11); project administration, 

operation, and maintenance (§ 302.12); 

post-approval requirements (§ 302.18); 

indemnification (§ 302.19); and civil 

rights (§ 302.20). In addition, any 

Property (defined at § 314.1) acquired in 

connection with Investment Assistance 

is subject to the property management 

regulations set out in part 314 of this 

chapter. 

■ 2. Revise part 315 to read as follows: 

PART 315—TRADE ADJUSTMENT 

ASSISTANCE FOR FIRMS 

Subpart A—General Provisions 

Sec. 

315.1 Purpose and scope. 

315.2 Definitions. 

315.3 Confidential Business Information. 

315.4 Eligible applicants. 

315.5 TAAC scope, selection, evaluation 

and awards. 

315.6 Firm eligibility for Adjustment 

Assistance. 

Subpart B—Certification of Firms 

315.7 Certification requirements. 

315.8 Processing petitions for certification. 

315.9 Hearings. 

315.10 Loss of certification benefits. 

315.11 Appeals, final determinations and 

termination of certification. 

Subpart C—Protective Provisions 

315.12 Recordkeeping. 

315.13 Audit and examination. 

315.14 Certifications. 

315.15 Conflicts of interest. 

Subpart D—Adjustment Proposals 

315.16 Adjustment proposal requirements. 

Subpart E—Assistance to Industries 

315.17 Assistance to Firms in importimpacted industries. 

Authority: 19 U.S.C. 2341 et seq., as 

amended by Division B, Title I, Subtitle I, 

Part II of Pub. L. 111–5; 42 U.S.C. 3211; 

Department of Commerce Organization Order 

10–4. 

Subpart A—General Provisions 

§ 315.1 Purpose and scope. 

The regulations in this part set forth 

the responsibilities of the Secretary of 

Commerce under chapter 3 of title II of 

the Trade Act concerning Trade 

Adjustment Assistance for Firms. The 

statutory authority and responsibilities 

of the Secretary of Commerce relating to 

Adjustment Assistance are delegated to 

EDA. EDA certifies Firms as eligible to 

apply for Adjustment Assistance, 

provides technical Adjustment 

Assistance to Firms and other 

recipients, and provides assistance to 

organizations representing trade injured 

industries. 

§ 315.2 Definitions. 

In addition to the defined terms set 

forth in § 300.3 of this chapter, the 

following terms used in this part shall 

have the following meanings: 

Adjustment Assistance means 

technical assistance provided to Firms 

or industries under chapter 3 of title II 

of the Trade Act. 

Adjustment Proposal means a 

Certified Firm’s plan for improving its 

economic situation. 

Certified Firm means a Firm which 

has been determined by EDA to be 

eligible to apply for Adjustment 

Assistance. 

Confidential Business Information 

means any information submitted to 

EDA or a TAAC by a Firm that concerns 

or relates to trade secrets for commercial 

or financial purposes, which is exempt 

from public disclosure under 5 U.S.C. 

552(b)(4), 5 U.S.C. 552b(c)(4) and 15 

CFR part 4. 

Contributed Importantly, with respect 

to an Increase in Imports, refers to a 

cause which is important but not 

necessarily more important than any 

other cause. Imports will not be 

considered to have Contributed 

Importantly if other factors were so 

dominant, acting singly or in 

combination, that the worker separation 

or threat thereof or decline in sales or 

production would have been essentially 

the same, irrespective of the influence of 

imports. 

Decreased Absolutely means a Firm’s 

sales or production has declined by a 

minimum of five percent relative to its 

sales or production during the 

applicable prior time period, 

(1) Independent of industry or market 

fluctuations; and 

(2) Relative only to the previous 

performance of the Firm, unless EDA 

determines that these limitations in a 

given case would not be consistent with 

the purposes of the Trade Act. 

Directly Competitive means imported 

articles or services that compete with 

and are substantially equivalent for 

commercial purposes (i.e., are adapted 

for the same function or use and are 

essentially interchangeable) as the 

Firm’s articles or services. Any Firm 

that engages in exploring or drilling for 

oil or natural gas, or otherwise produces 

oil or natural gas, shall be considered to 

be producing articles directly 

competitive with imports of oil and 

with imports of natural gas. 

Firm means an individual 

proprietorship, partnership, joint 

venture, association, corporation 

(includes a development corporation), 

business trust, cooperative, trustee in 

bankruptcy or receiver under court 

decree, and includes fishing, 

agricultural or service sector entities 

and those which explore, drill or 

otherwise produce oil or natural gas. 

See also the definition of Service Sector 

Firm. Pursuant to section 261 of chapter 

3 of title II of the Trade Act (19 U.S.C. 

2351), a Firm, together with any 

predecessor or successor firm, or any 

affiliated firm controlled or 

substantially beneficially owned by 

substantially the same person, may be 

considered a single Firm where 

necessary to prevent unjustifiable 

benefits. For purposes of receiving 


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benefits under this part, when a Firm 

owns or controls other Firms, the Firm 

and such other Firms may be considered 

a single Firm when they produce or 

supply like or Directly Competitive 

articles or services or are exerting 

essential economic control over one or 

more production facilities. Accordingly, 

such other Firms may include a(n): 

(1) Predecessor—see the following 

definition for Successor; 

(2) Successor—a newly established 

Firm (that has been in business less than 

two years) which has purchased 

substantially all of the assets of a 

previously operating company (or in 

some cases a whole distinct division) 

(such prior company, unit or division, a 

‘Predecessor’) and is able to demonstrate 

that it continued the operations of the 

Predecessor which has operated as an 

autonomous unit, provided that there 

were no significant transactions 

between the Predecessor unit and any 

related parent, subsidiary, or affiliate 

that would have affected its past 

performance, and that separate records 

are available for the Predecessor’s 

operations for at least two years before 

the petition is submitted. The Successor 

Firm must have continued virtually all 

of the Predecessor Firm’s operations by 

producing the same type of products or 

services, in the same plant, utilizing 

most of the same machinery and 

equipment and most of its former 

workers, and the Predecessor Firm must 

no longer be in existence; 

(3) Affiliate—a company (either 

foreign or domestic) controlled or 

substantially beneficially owned by 

substantially the same person or persons 

that own or control the Firm filing the 

petition; or 

(4) Subsidiary—a company (either 

foreign or domestic) that is wholly 

owned or effectively controlled by 

another company. 

Increase in Imports means an increase 

of imports of Directly Competitive or 

Like Articles or Services with articles 

produced or services supplied by such 

Firm. EDA may consider as evidence of 

an Increase in Imports a certification 

from the Firm’s customers that account 

for a significant percentage of the Firm’s 

decrease in sales or production that they 

have increased their purchase of 

imports of Directly Competitive or Like 

Articles or Services from a foreign 

country, either absolutely or relative to 

their acquisition of such Like Articles or 

Services from suppliers located in the 

United States. 

Like Articles or Services means any 

articles or services, as applicable, which 

are substantially identical in their 

intrinsic characteristics. 

Partial Separation means, with 

respect to any employment in a Firm, 

either: 

(1) A reduction in an employee’s work 

hours to 80 percent or less of the 

employee’s average weekly hours during 

the year of such reductions as compared 

to the preceding year; or 

(2) A reduction in the employee’s 

weekly wage to 80 percent or less of his/ 

her average weekly wage during the year 

of such reduction as compared to the 

preceding year. 

Person means an individual, 

organization or group. 

Record means any of the following: 

(1) A petition for certification of 

eligibility to qualify for Adjustment 

Assistance; 

(2) Any supporting information 

submitted by a petitioner; 

(3) The report of an EDA investigation 

with respect to petition; and 

(4) Any information developed during 

an investigation or in connection with 

any public hearing held on a petition. 

Service Sector Firm means a Firm 

engaged in the business of supplying 

services. For purposes of receiving 

benefits under this part, when a Service 

Sector Firm owns or controls other 

Service Sector Firms, the Service Sector 

Firm and such other Service Sector 

Firms may be considered a single 

Service Sector Firm when they furnish 

like or Directly Competitive services or 

are exerting essential economic control 

over one or more servicing facilities. 

Such other Service Sector Firm may be 

a Predecessor, Successor, Affiliate or 

Subsidiary, each as defined in the 

definition of Firm. 

Significant Number or Proportion of 

Workers means five percent of a Firm’s 

work force or 50 workers, whichever is 

less, unless EDA determines that these 

limitations in a given case would not be 

consistent with the purposes of the 

Trade Act. An individual farmer or 

fisherman is considered a Significant 

Number or Proportion of Workers. 

Substantial Interest means a direct 

material economic interest in the 

certification or non-certification of the 

petitioner. 

TAAC means a Trade Adjustment 

Assistance Center, as more fully 

described in § 315.5. 

Threat of Total or Partial Separation 

means, with respect to any group of 

workers, one or more events or 

circumstances clearly demonstrating 

that a Total or Partial Separation is 

imminent. 

Total Separation means, with respect 

to any employment in a Firm, the laying 

off or termination of employment of an 

employee for lack of work. 

§ 315.3 Confidential Business Information. 

EDA will follow the procedures set 

forth in 15 CFR 4.9 for the submission 

of Confidential Business Information. 

Submitters should clearly mark and 

designate as confidential any 

Confidential Business Information. 

§ 315.4 Eligible applicants. 

(a) The following entities may apply 

for assistance to operate a TAAC: 

(1) Universities or affiliated 

organizations; 

(2) States or local governments; or 

(3) Non-profit organizations. 

(b) For purposes of § 315.17 and to the 

extent funds are appropriated to 

implement section 265 of the Trade Act, 

organizations assisting or representing 

industries in which a substantial 

number of Firms or workers have been 

certified as eligible to apply for 

Adjustment Assistance under sections 

223 and 251 of the Trade Act, include: 

(1) Existing agencies; 

(2) Private individuals; 

(3) Firms; 

(4) Universities; 

(5) Institutions; 

(6) Associations; 

(7) Unions; or 

(8) Other non-profit industry 

organizations. 

§ 315.5 TAAC scope, selection, evaluation 

and awards. 

(a) TAAC purpose and scope. (1) 

TAACs are available to assist Firms in 

obtaining Adjustment Assistance in all 

50 U.S. States, the District of Columbia 

and the Commonwealth of Puerto Rico. 

TAACs provide Adjustment Assistance 

in accordance with this part either 

through their own staffs or by 

arrangements with outside consultants. 

Information concerning TAACs serving 

particular areas may be obtained from 

the TAAC Web site at http:// 

www.taacenters.org or from EDA at 

http://www.eda.gov. 

(2) Prior to submitting a petition for 

Adjustment Assistance to EDA, a Firm 

should determine the extent to which a 

TAAC can provide the required 

Adjustment Assistance. EDA will 

provide Adjustment Assistance through 

TAACs whenever EDA determines that 

such assistance can be provided most 

effectively in this manner. Requests for 

Adjustment Assistance will normally be 

made through TAACs. 

(3) A TAAC generally provides 

Adjustment Assistance by providing 

assistance to a: 

(i) Firm in preparing its petition for 

eligibility certification; and 

(ii) Certified Firm in diagnosing its 

strengths and weaknesses, and 

developing and implementing an 

Adjustment Proposal. 


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41600 Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 

(b) TAAC selection. (1) EDA invites 

currently funded TAACs to submit 

either new or amended applications, 

provided they have performed in a 

satisfactory manner and complied with 

previous or current conditions in their 

Cooperative Agreements with EDA and 

contingent upon availability of funds. 

Such TAACs shall submit an 

application on a form approved by 

OMB, as well as a proposed budget, 

narrative scope of work, and such other 

information as requested by EDA. 

Acceptance of an application or 

amended application for a Cooperative 

Agreement does not ensure funding by 

EDA. 

(2) EDA may invite new applications 

through a Federal Funding Opportunity 

(‘FFO’) announcement. An application 

will require a narrative scope of work, 

proposed budget and such other 

information as requested by EDA. 

Acceptance of an application does not 

ensure funding by EDA. 

(c) TAAC evaluation. (1) EDA 

generally evaluates currently funded 

TAACs based on: 

(i) Performance under Cooperative 

Agreements with EDA and compliance 

with the terms and conditions of such 

Cooperative Agreements; 

(ii) Proposed scope of work, budget 

and application or amended 

application; and 

(iii) Availability of funds. 

(2) EDA generally evaluates new 

TAACs based on: 

(i) Competence in administering 

business assistance programs; 

(ii) Background and experience of 

staff; 

(iii) Proposed scope of work, budget 

and application; and 

(iv) Availability of funds. 

(d) TAAC award requirements. (1) 

EDA generally funds a TAAC for a 

three-year project period consisting of 

three separate funding periods of 12 

months each. 

(2) There are no matching share 

requirements for Adjustment Assistance 

provided by the TAACs to Firms for 

certification or for administrative 

expenses of the TAACs. 

§ 315.6 Firm eligibility for Adjustment 

Assistance. 

(a) Firms participate in the Trade 

Adjustment Assistance for Firms 

program in accordance with the 

following: 

(1) Firms apply for certification 

through a TAAC by completing a 

petition for certification. The TAAC will 

assist Firms in completing such 

petitions (at no cost to the Firms); 

(2) Firms certified in accordance with 

the procedures described in §§ 315.7 

and 315.8 must prepare an Adjustment 

Proposal for Adjustment Assistance 

from the TAAC (‘Adjustment Proposal’) 

and submit it to EDA for approval; and 

(3) EDA determines whether the 

Adjustment Assistance requested in the 

Adjustment Proposal is eligible based 

upon the evaluation criteria set forth in 

subpart D of this part. A Certified Firm 

may submit a request to the TAAC for 

Adjustment Assistance to implement an 

approved Adjustment Proposal. 

(b) For certification, EDA evaluates 

Firms’ petitions strictly on the basis of 

fulfillment of the requirements set forth 

in § 315.7. 

(c) (1) Certified Firms generally 

receive Adjustment Assistance over a 

two-year period. 

(2) The matching share requirements 

are as follows: 

(i) Each Certified Firm must pay at 

least 25 percent of the cost of preparing 

its Adjustment Proposal. Each Certified 

Firm requesting $30,000 or less in total 

Adjustment Assistance in its approved 

Adjustment Proposal must pay at least 

25 percent of the cost of that 

Adjustment Assistance. Each Certified 

Firm requesting more than $30,000 in 

total Adjustment Assistance in its 

approved Adjustment Proposal must 

pay at least 50 percent of the cost of that 

Adjustment Assistance. 

(ii) Organizations representing tradeinjured industries must pay at least 50 

percent of the total cash cost of the 

Adjustment Assistance, in addition to 

appropriate in-kind contributions. 

Subpart B—Certification of Firms 

§ 315.7 Certification requirements. 

(a) General. EDA may certify a Firm 

as eligible to apply for Adjustment 

Assistance under section 251(c) of the 

Trade Act if it determines that the 

petition for certification meets one of 

the minimum certification thresholds 

set forth in paragraph (b) of this section. 

In order to be certified, a Firm must 

meet the criteria listed under any one of 

the 5 circumstances described in 

paragraph (b) of this section. 

(b) Minimum certification thresholds. 

(1) Twelve-month decline. Based upon a 

comparison of the most recent 12-month 

period for which data are available and 

the immediately preceding twelvemonth period: 

(i) A Significant Number or 

Proportion of Workers in the Firm has 

undergone Total or Partial Separation or 

a Threat of Total or Partial Separation; 

(ii) Either sales or production, or both, 

of the Firm has Decreased Absolutely; or 

sales or production, or both, of any 

article or service that accounted for not 

less than 25 percent of the total 

production or sales of the Firm during 

the 12-month period preceding the most 

recent 12-month period for which data 

are available have Decreased 

Absolutely; and 

(iii) An Increase in Imports has 

Contributed Importantly to the 

applicable Total or Partial Separation or 

Threat of Total or Partial Separation, 

and to the applicable decline in sales or 

production or supply of services. 

(2) Twelve-month versus twenty-four 

month decline. Based upon a 

comparison of the most recent 12-month 

period for which data are available and 

the immediately preceding 24-month 

period: 

(i) A Significant Number or 

Proportion of Workers in the Firm has 

undergone Total or Partial Separation or 

a Threat of Total or Partial Separation; 

(ii) Either average annual sales or 

production, or both, of the Firm has 

Decreased Absolutely; or average annual 

sales or production, or both, of any 

article or service that accounted for not 

less than 25 percent of the total 

production or sales of the Firm during 

the 24-month period preceding the most 

recent 12-month period for which data 

are available have Decreased 

Absolutely; and 

(iii) An Increase in Imports has 

Contributed Importantly to the 

applicable Total or Partial Separation or 

Threat of Total or Partial Separation, 

and to the applicable decline in sales or 

production or supply of services. 

(3) Twelve-month versus thirty-six 

month decline. Based upon a 

comparison of the most recent 12-month 

period for which data are available and 

the immediately preceding 36-month 

period: 

(i) A Significant Number or 

Proportion of Workers in the Firm has 

undergone Total or Partial Separation or 

a Threat of Total or Partial Separation; 

(ii) Either average annual sales or 

production, or both, of the Firm has 

Decreased Absolutely; or average annual 

sales or production, or both, of any 

article or service that accounted for not 

less than 25 percent of the total 

production or sales of the Firm during 

the 36-month period preceding the most 

recent 12-month period for which data 

are available have Decreased 

Absolutely; and 

(iii) An Increase in Imports has 

Contributed Importantly to the 

applicable Total or Partial Separation or 

Threat of Total or Partial Separation, 

and to the applicable decline in sales or 

production or supply of services. 

(4) Interim sales or production 

decline. Based upon an interim sales or 

production decline: 


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(i) Sales or production has Decreased 

Absolutely for, at minimum, the most 

recent six-month period during the most 

recent 12-month period for which data 

are available as compared to the same 

six-month period during the 

immediately preceding 12-month 

period; 

(ii) During the same base and 

comparative period of time as sales or 

production has Decreased Absolutely, a 

Significant Number or Proportion of 

Workers in such Firm has undergone 

Total or Partial Separation or a Threat 

of Total or Partial Separation; and 

(iii) During the same base and 

comparative period of time as sales or 

production has Decreased Absolutely, 

an Increase in Imports has Contributed 

Importantly to the applicable Total or 

Partial Separation or Threat of Total or 

Partial Separation, and to the applicable 

decline in sales or production or supply 

of services. 

(5) Interim employment decline. 

Based upon an interim employment 

decline: 

(i) A Significant Number or 

Proportion of Workers in such Firm has 

undergone Total or Partial Separation or 

a Threat of Total or Partial Separation 

during, at a minimum, the most recent 

six-month period during the most recent 

12-month period for which data are 

available as compared to the same sixmonth period during the immediately 

preceding 12-month period; and 

(ii) Either sales or production of the 

Firm has Decreased Absolutely during 

the 12-month period preceding the most 

recent 12-month period for which data 

are available; and 

(iii) An Increase in Imports has 

Contributed Importantly to the 

applicable Total or Partial Separation or 

Threat of Total or Partial Separation, 

and to the applicable decline in sales or 

production or supply of services. 

§ 315.8 Processing petitions for 

certification. 

(a) Firms shall consult with a TAAC 

for guidance and assistance in the 

preparation of their petitions for 

certification. 

(b) A Firm seeking certification shall 

complete a Petition by a Firm for 

Certification of Eligibility to Apply for 

Trade Adjustment Assistance (Form 

ED–840P or any successor form) with 

the following information about such 

Firm: 

(1) Identification and description of 

the Firm, including legal form of 

organization, economic history, major 

ownership interests, officers, directors, 

management, parent company, 

Subsidiaries or Affiliates, and 

production and sales facilities; 

(2) Description of goods or services 

supplied or sold; 

(3) Description of imported Directly 

Competitive or Like Articles or Services 

with those produced or supplied; 

(4) Data on its sales, production and 

employment for the applicable 24- 

month, 36-month, or 48-month period, 

as required under § 315.7(b); 

(5) One copy of a complete auditor’s 

certified financial report for the entire 

period covering the petition, or if not 

available, one copy of the complete 

profit and loss statements, balance 

sheets and supporting statements 

prepared by the Firm’s accountants for 

the entire period covered by the 

petition; publicly-owned corporations 

should submit copies of the most recent 

Form 10–K annual reports (or Form 10– 

Q quarterly reports, as appropriate) filed 

with the U.S. Securities and Exchange 

Commission for the entire period 

covered by the petition; 

(6) Information concerning its major 

customers and their purchases (or its 

bids, if there are no major customers); 

and 

(7) Such other information as EDA 

considers material. 

(c) EDA shall determine whether the 

petition has been properly prepared and 

can be accepted. Promptly thereafter, 

EDA shall notify the petitioner that the 

petition has been accepted or advise the 

TAAC that the petition has not been 

accepted, but may be resubmitted at any 

time without prejudice when the 

specified deficiencies have been 

corrected. Any resubmission will be 

treated as a new petition. 

(d) EDA will publish a notice of 

acceptance of a petition in the Federal 

Register. 

(e) EDA will initiate an investigation 

to determine whether the petitioner 

meets the requirements set forth in 

section 251(c) of the Trade Act and 

§ 315.7. 

(f) A petitioner may withdraw a 

petition for certification if EDA receives 

a request for withdrawal before it makes 

a certification determination or denial. 

A Firm may submit a new petition at 

any time thereafter in accordance with 

the requirements of this section and 

§ 315.7. 

(g) Following acceptance of a petition, 

EDA will: 

(1) Make a determination based on the 

Record as soon as possible after the 

petitioning Firm or TAAC has submitted 

all material. In no event may the 

determination period exceed 40 days 

from the date on which EDA accepted 

the petition; and 

(2) Either certify the petitioner as 

eligible to apply for Adjustment 

Assistance or deny the petition. In 

either event, EDA shall promptly give 

written notice of action to the petitioner. 

Any written notice to the petitioner of 

a denial of a petition shall specify the 

reason(s) for the denial. A petitioner 

shall not be entitled to resubmit a 

petition within one year from the date 

of denial, provided, EDA may waive the 

one-year limitation for good cause. 

§ 315.9 Hearings. 

EDA will hold a public hearing on an 

accepted petition if the petitioner or any 

interested Person found by EDA to have 

a Substantial Interest in the proceedings 

submits a request for a hearing no later 

than 10 days after the date of 

publication of the notice of acceptance 

in the Federal Register, under the 

following procedures: 

(a) The petitioner or any interested 

Person(s) shall have an opportunity to 

be present, to produce evidence and to 

be heard; 

(b) A request for public hearing must 

be delivered by hand or by registered 

mail to EDA. A request by a Person 

other than the petitioner shall contain: 

(1) The name, address and telephone 

number of the Person requesting the 

hearing; and 

(2) A complete statement of the 

relationship of the Person requesting the 

hearing to the petitioner and the subject 

matter of the petition, and a statement 

of the nature of its interest in the 

proceedings. 

(c) If EDA determines that the 

requesting party does not have a 

Substantial Interest in the proceedings, 

a written notice of denial shall be sent 

to the requesting party. The notice shall 

specify the reasons for the denial; 

(d) EDA shall publish a notice of a 

public hearing in the Federal Register, 

containing the subject matter, name of 

petitioner, and date, time and place of 

the hearing; and 

(e) EDA shall appoint a presiding 

officer for the hearing who shall 

respond to all procedural questions. 

§ 315.10 Loss of certification benefits. 

EDA may terminate a Firm’s 

certification or refuse to extend 

Adjustment Assistance to a Firm for any 

of the following reasons: 

(a) Failure to submit an acceptable 

Adjustment Proposal within two years 

after date of certification. While 

approval of an Adjustment Proposal 

may occur after the expiration of such 

two-year period, a Firm must submit an 

acceptable Adjustment Proposal before 

such expiration; 

(b) Failure to submit documentation 

necessary to start implementation or 

modify its request for Adjustment 

Assistance consistent with its 


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41602 Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 

Adjustment Proposal within six months 

after approval of the Adjustment 

Proposal, where two years have elapsed 

since the date of certification. If the 

Firm anticipates needing a longer period 

to submit documentation, it should 

indicate the longer period in its 

Adjustment Proposal. If the Firm is 

unable to submit its documentation 

within the allowed time, it should 

notify EDA in writing of the reasons for 

the delay and submit a new schedule. 

EDA has the discretion to accept or 

refuse a new schedule; 

(c) EDA has denied the Firm’s request 

for Adjustment Assistance, the time 

period allowed for the submission of 

any documentation in support of such 

request has expired, and two years have 

elapsed since the date of certification; or 

(d) Failure to diligently pursue an 

approved Adjustment Proposal where 

five years have elapsed since the date of 

certification. 

§ 315.11 Appeals, final determinations and 

termination of certification. 

(a) Any petitioner may appeal in 

writing to EDA from a denial of 

certification, provided that EDA 

receives the appeal by personal delivery 

or by registered mail within 60 days 

from the date of notice of denial under 

§ 315.8(g). The appeal must state the 

grounds on which the appeal is based, 

including a concise statement of the 

supporting facts and applicable law. 

The decision of EDA on the appeal shall 

be the final determination within the 

Department. In the absence of an appeal 

by the petitioner under this paragraph, 

the determination under § 315.8(g) shall 

be final. 

(b) A Firm, its representative or any 

other interested domestic party 

aggrieved by a final determination 

under paragraph (a) of this section may, 

within 60 days after notice of such 

determination, begin a civil action in 

the United States Court of International 

Trade for review of such determination, 

in accordance with section 284 of the 

Trade Act. 

(c) Whenever EDA determines that a 

Certified Firm no longer requires 

Adjustment Assistance or for other good 

cause, EDA will terminate the 

certification and promptly publish 

notice of such termination in the 

Federal Register. The termination will 

take effect on the date specified in the 

published notice. 

(d) EDA shall immediately notify the 

petitioner and shall state the reasons for 

any termination. 

Subpart C—Protective Provisions 

§ 315.12 Recordkeeping. 

Each TAAC shall keep records that 

fully disclose the amount and 

disposition of Trade Adjustment 

Assistance for Firms program funds so 

as to facilitate an effective audit. 

§ 315.13 Audit and examination. 

EDA and the Comptroller General of 

the United States shall have access for 

the purpose of audit and examination to 

any books, documents, papers, and 

records of a Firm, TAAC or other 

recipient of Adjustment Assistance 

pertaining to the award of Adjustment 

Assistance. 

§ 315.14 Certifications. 

EDA will provide no Adjustment 

Assistance to any Firm unless the 

owners, partners, members, directors or 

officers thereof certify to EDA: 

(a) The names of any attorneys, 

agents, and other Persons engaged by or 

on behalf of the Firm for the purpose of 

expediting applications for such 

Adjustment Assistance; and 

(b) The fees paid or to be paid to any 

such Person. 

§ 315.15 Conflicts of interest. 

EDA will provide no Adjustment 

Assistance to any Firm under this part 

unless the owners, partners, or officers 

execute an agreement binding them and 

the Firm for a period of two years after 

such Adjustment Assistance is 

provided, to refrain from employing, 

tendering any office or employment to, 

or retaining for professional services any 

Person who, on the date such assistance 

or any part thereof was provided, or 

within one year prior thereto, shall have 

served as an officer, attorney, agent, or 

employee occupying a position or 

engaging in activities which involved 

discretion with respect to the provision 

of such Adjustment Assistance. 

Subpart D—Adjustment Proposals 

§ 315.16 Adjustment proposal 

requirements. 

EDA evaluates Adjustment Proposals 

based on the following: 

(a) EDA must receive the Adjustment 

Proposal within two years after the date 

of the certification of the Firm; 

(b) The Adjustment Proposal must 

include a description of any Adjustment 

Assistance requested to implement such 

proposal, including financial and other 

supporting documentation as EDA 

determines is necessary, based upon 

either: 

(1) An analysis of the Firm’s 

problems, strengths and weaknesses and 

an assessment of its prospects for 

recovery; or 

(2) If EDA so determines, other 

available information; 

(c) The Adjustment Proposal must: 

(1) Be reasonably calculated to 

contribute materially to the economic 

adjustment of the Firm (i.e., that such 

proposal will constructively assist the 

Firm to establish a competitive position 

in the same or a different industry); 

(2) Give adequate consideration to the 

interests of a sufficient number of 

separated workers of the Firm, by 

providing, for example, that the Firm 

will: 

(i) Give a rehiring preference to such 

workers; 

(ii) Make efforts to find new work for 

a number of such workers; and 

(iii) Assist such workers in obtaining 

benefits under available programs; and 

(3) Demonstrate that the Firm will 

make all reasonable efforts to use its 

own resources for its recovery, though 

under certain circumstances, resources 

of related Firms or major stockholders 

will also be considered; and 

(d) The Adjustment Assistance 

identified in the Adjustment Proposal 

must consist of specialized consulting 

services designed to assist the Firm in 

becoming more competitive in the 

global marketplace. For this purpose, 

Adjustment Assistance generally 

consists of knowledge-based services 

such as market penetration studies, 

customized business improvements, and 

designs for new products. Adjustment 

Assistance does not include 

expenditures for capital improvements 

or for the purchase of business 

machinery or supplies. 

Subpart E—Assistance to Industries 

§ 315.17 Assistance to firms in importimpacted industries. 

(a) Whenever the International Trade 

Commission makes an affirmative 

finding under section 202(B) of the 

Trade Act that increased imports are a 

substantial cause of serious injury or 

threat thereof with respect to an 

industry, EDA shall provide to the 

Firms in such industry assistance in the 

preparation and processing of petitions 

and applications for benefits under 

programs which may facilitate the 

orderly adjustment to import 

competition of such Firms. 

(b) EDA may provide Adjustment 

Assistance, on such terms and 

conditions as EDA deems appropriate, 

for the establishment of industry-wide 

programs for new product development, 

new process development, export 

development or other uses consistent 

with the purposes of the Trade Act and 

this part. 


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Federal Register / Vol. 74, No. 158 / Tuesday, August 18, 2009 / Rules and Regulations 41603 

(c) Expenditures for Adjustment 

Assistance under this section may be up 

to $10,000,000 annually per industry, 

subject to availability of funds, and shall 

be made under such terms and 

conditions as EDA deems appropriate. 

Dated: August 13, 2009. 

Dennis Alvord, 

Acting Deputy Assistant Secretary of 

Commerce for Economic Development. 

[FR Doc. E9–19774 Filed 8–17–09; 8:45 am] 

BILLING CODE 3510–24–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0447; Directorate 

Identifier 2008–NM–172–AD; Amendment 

39–15993; AD 2009–17–02] 

RIN 2120–AA64 

Airworthiness Directives; Saab AB, 

Saab Aerosystems Model SAAB 340A 

(SAAB/SF340A) and SAAB 340B 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

During refueling, the ground crew detected 

smoke from the refuel/defuel panel 

illuminated placard 160VU. * * * 

* * * * * 

We are issuing this AD to require 

actions to correct the unsafe condition 

on these products. 

DATES: This AD becomes effective 

September 22, 2009. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of September 22, 2009. 

ADDRESSES: You may examine the AD 

docket on the Internet at http:// 

www.regulations.gov or in person at the 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., 

Washington, DC. 

FOR FURTHER INFORMATION CONTACT: 

Shahram Daneshmandi, Aerospace 

Engineer, International Branch, ANM– 

116, Transport Airplane Directorate, 

FAA, 1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 227–1112; fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. That 

NPRM was published in the Federal 

Register on May 14, 2009 (74 FR 22712). 

That NPRM proposed to correct an 

unsafe condition for the specified 

products. The MCAI states: 

During refueling, the ground crew detected 

smoke from the refuel/defuel panel 

illuminated placard 160VU. The design of 

the refuel/defuel panel illuminated placard 

was changed during 1997 from its original 

specification, to fill the cavity inside the 

placard with silicone to avoid moisture/fluid 

ingress. SAAB has reviewed the working 

procedure and has developed a placard filled 

with a bi-component silicone-based material 

to minimize the cavity inside the panels. 

For the reasons described above, this EASA 

AD requires the identification of the 

manufacturing date of the affected placard, a 

visual inspection of the placard for heat and/ 

or burn marks and the installation of a new 

placard in accordance with the instructions 

of SAAB Service Bulletin (SB) 340–28–027. 

This AD has been revised to identify the 

affected VIBRACHOC (the part manufacturer) 

placard with Part Number (P/N) 

C4FL5031C001, instead of the corresponding 

SAAB P/N 9303719–001, which was (also) 

quoted inaccurately. In addition, it has been 

recognised that the original AD did not allow 

installation of the placards with a 

manufacturing date before 31/97; that has 

now been corrected. 

The unsafe condition is an electrical 

malfunction in the illuminated placard 

of the refuel and defuel panel, which 

could result in fire. You may obtain 

further information by examining the 

MCAI in the AD docket. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

received no comments on the NPRM or 

on the determination of the cost to the 

public. 

Conclusion 

We reviewed the available data and 

determined that air safety and the 

public interest require adopting the AD 

as proposed. 

Differences Between this AD and the 

MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information 

provided in the MCAI and related 

service information. 

We might also have required different 

actions in this AD from those in the 

MCAI in order to follow our FAA 

policies. Any such differences are 

highlighted in a note within the AD. 

Costs of Compliance 

We estimate that this AD will affect 

141 products of U.S. registry. We also 

estimate that it will take about 2 workhours per product to comply with the 

basic requirements of this AD. The 

average labor rate is $80 per work-hour. 

Required parts will cost about $1,500 

per product. Where the service 

information lists required parts costs 

that are covered under warranty, we 

have assumed that there will be no 

charge for these parts. As we do not 

control warranty coverage for affected 

parties, some parties may incur costs 

higher than estimated here. Based on 

these figures, we estimate the cost of 

this AD to the U.S. operators to be 

$234,060, or $1,660 per product. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. 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. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this AD will not 

have federalism implications under 

Executive Order 13132. This AD will 

not have a substantial direct effect on 

the States, on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 


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