This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

27470 

Vol. 72, No. 94 

Wednesday, May 16, 2007 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Rural Business-Cooperative Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Part 1924 

RIN 0575–AC65 

Thermal Standards 

AGENCY: Rural Housing Service, Rural 

Business-Cooperative Service, Rural 

Utilities Service, Farm Service Agency, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: The Rural Housing Service 

(Agency) is proposing to amend its 

regulations to be consistent with other 

federal agencies. The current thermal 

standards for existing single family 

housing can impose an unnecessary 

financial burden on the borrower. 

Removing the thermal standards for 

existing single family housing will 

provide consistency with HUD existing 

single family housing thermal 

standards. This change will not affect 

the thermal standards for new 

construction; such requirements are 

generally prescribed by adopted 

building and model energy codes. 

Construction materials and building 

techniques have improved 

tremendously during the last thirty 

years, creating many alternatives to 

achieve thermally efficient homes. 

Removing the Agency’s imposed 

thermal standards for existing single 

family housing will give a borrower the 

opportunity to allocate money towards 

other improvements which may result 

in higher cost savings. The rule will not 

result in any increase in costs or prices 

to consumers; non-profit organizations; 

businesses; Federal, State, or local 

government agencies; or geographic 

regions. 

DATES: Written or e-mail comments 

must be received on or before July 16, 

2007. 

ADDRESSES: You may submit comments 

on this rule by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Submit written comments via 

the U.S. Postal Service to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, STOP 0742, 1400 

Independence Avenue, SW., 

Washington, DC 20250–0742. 

• Hand Delivery/Courier: Submit 

written comments via Federal Express 

Mail or another mail courier service 

requiring a street address to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, 300 7th Street, SW., 7th 

Floor, Suite 701, Washington, DC 20024. 

All written comments will be 

available for public inspection during 

regular work hours at the 300 7th Street, 

SW., address listed above. 

FOR FURTHER INFORMATION CONTACT: 

Michel Mitias, Technical Support 

Branch, Program Support Staff, Rural 

Housing Service, U.S. Department of 

Agriculture, STOP 0761, 1400 

Independence Avenue SW., 

Washington, DC 20250–0761; 

Telephone: 202–720–9653; FAX: 202– 

690–4335; E-mail: 

michel.mitias@wdc.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Classification 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and, therefore, has not 

been reviewed by the Office of 

Management and Budget (OMB). 

Civil Justice Reform 

In accordance with this rule: (1) All 

State and local laws and regulations that 

are in conflict with this rule will be 

preempted, (2) no retroactive effect will 

be given to this rule, and (3) 

administrative proceedings in 

accordance with 7 CFR part 11 must be 

exhausted before bringing suit in court 

challenging action taken under this rule, 

unless those regulations specifically 

allow bringing suit at an earlier time. 

Regulatory Flexibility Act 

The Administrator of the Agency has 

determined that this rule will not have 

a significant economic impact on a 

substantial number of small entities as 

defined in the Regulatory Flexibility Act 

(5 U.S.C. 601 et seq.). New provisions 

included in this rule will not impact a 

substantial number of small entities to 

a greater extent than large entities. 

Therefore, a regulatory flexibility 

analysis was not performed. 

Unfunded Mandates Reform Act 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995) for State, 

local, and tribal governments or the 

private sector. Thus, this rule is not 

subject to the requirements of sections 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

Environmental Impact Statement 

This document has been reviewed in 

accordance with 7 CFR part 1940, 

subpart G, ‘‘Environmental Program.’’ 

The Agency has determined that this 

action does not constitute a major 

Federal action significantly affecting the 

quality of the human environment, and, 

in accordance with the National 

Environmental Policy Act of 1969, Pub. 

L. 91–190, an Environmental Impact 

Statement is not required. 

Programs Affected 

The programs affected are listed in the 

Catalog of Federal Domestic Assistance 

under Number 10.410, Very Low to 

Moderate Income Housing Loans (Direct 

and Guaranteed/Insured). 

Federalism 

The policies contained in this rule do 

not have any substantial direct effect on 

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. Nor does this rule 

impose substantial direct compliance 

costs on State and local governments. 

Therefore, consultation with the States 

is not required. 

Intergovernmental Review 

The Agency conducts 

intergovernmental consultation in the 

manner delineated in RD Instruction 

1940–J, ‘‘Intergovernmental Review of 

Rural Development Programs and 


ycherry on PROD1PC64 with PROPOSALS
Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Proposed Rules 27471 

Activities,’’ and in 7 CFR part 3015, 

subpart V. The Very Low to Moderate 

Income Housing Loans Program, 

Number 10.410, is not subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with State and local 

officials. An intergovernmental review 

for this revision is not required or 

applicable. 

Paperwork Reduction Act 

There are no new reporting and 

recordkeeping requirements associated 

with this rule. 

E-Government Act Compliance 

The Agency is committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes. (If appropriate—For 

information pertinent to E–GOV 

compliance related to this proposed 

rule, please contact Michel Mitias, 202–

720–9653. 

Background 

The quality of construction, age, and 

condition of an existing dwelling 

financed through the Agency’s single 

family housing programs may have a 

significant impact on the unit’s thermal 

efficiency. The Agency should consider 

the thermal performance of a home as 

part of its overall condition, rather than 

a separate factor. 

Newer residences, or older residences 

currently in average or good condition, 

generally can be accepted as being 

representative of their community, and 

are likely to have average thermal 

efficiency for the market in which they 

are located. These homes represent a 

typical residence in terms of overall 

design, construction, and appeal in the 

marketplace, and can be presumed to 

have reasonable, overall thermal 

performance. 

Aging residences, particularly those 

with significant deficiencies, or those 

designated as being in only fair 

condition or less, could represent a 

higher risk to the borrower and the 

Agency. Homes with older effective ages 

or in fair condition may be financed in 

some circumstances with certain 

upgrades, but should be thoroughly and 

carefully inspected to insure the overall 

soundness of the collateral, including 

thermal components. These homes may 

require thermal and insulation upgrades 

in order to ensure reasonable (average) 

heating and cooling costs for borrowers. 

The Agency’s existing thermal 

standards, or similar standard, may 

serve as a guide for an energy efficient 

home, however we recognize that 

incremental improvements to existing 

homes to reach this standard may not 

always be cost effective. The Agency 

should look at homes to be financed 

based on their overall condition. When 

a home needs improvement in order to 

be acceptable for our financing, the 

focus should be on reducing the 

effective age by improving the existing 

overall condition as well as increasing 

energy efficiency. 

A combination of Uniform Residential 

Appraisal Report (URAR) designations 

for ‘‘quality of construction’’ and 

‘‘condition’’, as well as ‘‘age’’ and 

‘‘effective age’’ may be used to judge the 

overall condition of a home, and 

whether additional analysis needs to be 

undertaken to ensure the dwelling will 

be reasonably thermally efficient for the 

market in which it is located. In 

addition, an on-site inspection by an 

Agency representative or designee may 

provide further information on the 

thermal performance of a home. Hence, 

the Agency has determined that it is no 

longer necessary to impose thermal 

standards for existing single family 

housing. 

This change will not be subject to 

Section 509(a) of the Housing Act of 

1949 because it pertains only to existing 

single family housing. All new single 

family housing construction must 

comply with the Minimum Property 

Standards (MPS) adopted by the 

Department of Housing and Urban 

Development (HUD), as well as national 

model codes adopted by the applicable 

jurisdiction, locality, or state. 

List of Subjects in 7 CFR Part 1924 

Agriculture, Construction 

management, Construction and repair, 

Energy conservation, Housing, Loan 

programs—Agriculture, Low and 

moderate income housing. 

For the reasons set forth in the 

preamble, Chapter XVIII, Title 7, of the 

Code of Federal Regulations is amended 

as follows: 

PART 1924—CONSTRUCTION AND 

REPAIR 

1. The authority citation for part 1924 

continues to read as follows: 

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 

U.S.C. 1480. 

Subpart A—Planning and Performing 

Construction and Other Development 

2. Exhibit D of subpart A is amended 

by: 

A. Removing the last sentence in 

paragraph II; 

B. Removing and reserving paragraph 

IV B; 

C. Revising the words ‘‘paragraphs IV 

A and IV B’’ in paragraph IV C 1 to read 

‘‘paragraph IV A’’; 

D. Revising the words ‘‘paragraphs IV 

A and B’’ in paragraph IV C 2 to read 

‘‘paragraph IV A’’; 

E. Revising the words ‘‘paragraphs IV 

A or IV B’’ in the first and last sentences 

of paragraph IV C 2b, and in paragraphs 

IV C 3 introductory text, IV C 3a and IV 

C 3b to read ‘‘paragraph IV A’’; and 

F. Removing the words ‘‘or B’’ in 

paragraphs IV C introductory text and 

IV C 3c. 

Dated: April 6, 2007. 

Russell T. Davis, 

Administrator, Rural Housing Service. 

[FR Doc. 07–2366 Filed 5–15–07; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF ENERGY 

10 CFR Part 609 

RIN 1901–AB21 

Loan Guarantees for Projects that 

Employ Innovative Technologies 

AGENCY: Office of the Chief Financial 

Officer, Department of Energy. 

ACTION: Notice of proposed rulemaking 

and opportunity for comment. 

SUMMARY: The Department of Energy 

(DOE or Department) today proposes 

policies and procedures applicable to 

DOE’s loan guarantee program 

authorized by Title XVII of the Energy 

Policy Act of 2005. Today’s proposed 

rule, when final, also will further the 

President’s Advanced Energy Initiative. 

Title XVII authorizes the Secretary of 

Energy to make loan guarantees for 

projects that ‘‘avoid, reduce, or 

sequester air pollutants or 

anthropogenic emissions of greenhouse 

gases; and employ new or significantly 

improved technologies as compared to 

commercial technologies in service in 

the United States at the time the 

guarantee is issued.’’ Title XVII also 

identifies ten categories of technologies 

that, if employed in commercial 

projects, are potentially eligible for a 

loan guarantee. A principal goal of Title 

XVII is to encourage commercial use in 

the United States of new or significantly 

improved energy-related technologies. 

DOE believes that accelerated 

commercial use of new and improved 

technologies will help sustain economic 

growth, yield environmental benefits, 

and produce a more stable and secure 

energy supply and economy for the 

United States. 


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