Federal Register / Vol. 74, No. 211 / Tuesday, November 3, 2009 / Rules and Regulations 56719 

acceptable for compliance with the 

corresponding action, paragraph (g) of this 

AD. 

Alternative Methods of Compliance 

(AMOCs) 

(i)(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. Send information to ATTN: 

Marcia Smith, Aerospace Engineer, Cabin 

Safety and Environmental Systems Branch, 

ANM–150S, FAA, Seattle Aircraft 

Certification Office, 1601 Lind Avenue, SW., 

Renton, Washington 98057–3356; telephone 

(425) 917–6484; fax (425) 917–6590. Or, email information to 9-ANM-Seattle-ACOAMOC-Requests@faa.gov. 

(2) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

Material Incorporated by Reference 

(j) You must use Boeing Alert Service 

Bulletin 747–25A3431, dated March 6, 2008; 

and Boeing Service Bulletin 747–25A3430, 

Revision 1, dated October 9, 2008; as 

applicable; to do the actions required by this 

AD, unless the AD specifies otherwise. 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

this service information under 5 U.S.C. 

552(a) and 1 CFR part 51. 

(2) For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Data & Services 

Management, P.O. Box 3707, MC 2H–65, 

Seattle, Washington 98124–2207; telephone 

206–544–5000, extension 1, fax 206–766– 

5680; e-mail me.boecom@boeing.com; 

Internet https://www.myboeingfleet.com. 

(3) You may review copies of the service 

information at the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue, SW., Renton, 

Washington. For information on the 

availability of this material at the FAA, call 

425–227–1221 or 425–227–1152. 

(4) You may also review copies of the 

service information that is incorporated by 

reference at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, or go 

to: http://www.archives.gov/federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Renton, Washington, on October 

19, 2009. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–25918 Filed 11–2–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 285 

RIN 1510–AB23 

Administrative Offset Under Reciprocal 

Agreements With States 

AGENCY: Financial Management Service, 

Fiscal Service, Treasury. 

ACTION: Final rule. 

SUMMARY: This final rule describes the 

rules applicable to the offset of Federal 

nontax payments to collect delinquent 

debts owed to States pursuant to 

reciprocal agreements between the 

Secretary of the Treasury and the States. 

In addition to providing for the offset of 

Federal nontax payments, the reciprocal 

agreements provide for the offset of 

State payments to collect delinquent, 

nontax Federal debts. The offsets 

described in this rule are processed by 

the Treasury Offset Program (TOP), 

which the Department of the Treasury’s 

Financial Management Service (FMS) 

established to centralize the process by 

which Federal payments are withheld or 

reduced (in other words, offset) to 

collect delinquent debts. 

DATES: This rule is effective November 

3, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Thomas Dungan, Senior Policy Analyst, 

at (202) 874–6660, or Tricia Long, 

Senior Counsel, at (202) 874–6680. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Debt Collection Improvement Act 

of 1996 DCIA), Public Law 104–134, 110 

Stat. 1321–358 et seq. (April 26, 1996), 

authorized Federal disbursing officials 

to withhold or reduce eligible Federal 

payments to pay the payee’s delinquent 

debt owed to the United States. See 31 

U.S.C. 3716(c). This process is known as 

‘‘administrative offset’’ or ‘‘offset.’’ The 

DCIA also provided that Federal 

payments may be offset to collect 

delinquent debts owed to States 

provided that the States enter into 

reciprocal agreements with the 

Secretary of the Treasury and meet 

certain other qualifications. See 31 

U.S.C. 3716(h). Section 3716(h) 

authorizes the Secretary of the Treasury 

to allow States to participate in 

administrative offset to collect 

delinquent State debts so long as the 

States meet the requirements of 31 

U.S.C. 3716(h), including entering into 

reciprocal agreements with the 

Secretary of the Treasury. Such 

reciprocal agreements shall contain any 

requirements that the Secretary 

considers appropriate, to facilitate offset 

and prevent duplicative efforts. 

On January 11, 2007, FMS issued an 

interim rule with request for comments 

that established the reciprocal offset 

program with States through TOP. See 

72 FR 1283. In that interim rule, FMS 

also described the pilot program that 

was initiated in June 2007. The purpose 

of the pilot program was to determine if 

it is in the best interests of the United 

States and the States to fully implement 

reciprocal offsets under this section. 

FMS invited the States to participate in 

the pilot program, and two States 

participated. The purposes of the pilot 

were to test offset systems and 

procedures and to evaluate whether the 

benefits of the program outweigh the 

costs. In the interim rule, FMS indicated 

it would consider information gained 

from the operation of the pilot, in 

addition to comments received on the 

interim rule, before issuing a final rule. 

Based upon the results of the pilot 

program, FMS has determined that it is 

in the best interests of the United States 

to continue with the reciprocal offset 

program with the States with some 

changes set forth in this final rule. 

II. Discussion of Comments and Results 

of the Pilot Public Comments 

FMS received comments from one 

association of auditors, comptrollers, 

and treasurers. Following is a 

discussion of the substantive issues 

raised in the comments. 

1. Limitations on Payments Available 

for Offset To Collect State Debts 

The commenter noted that TOP 

processes offsets of many payments that 

are not available for offset to collect 

State debts. Among those payments are 

federal tax refunds, social security 

payments, and federal salary payments. 

The statute authorizing reciprocal 

offsets under this section expressly 

excludes offset of federal tax refunds 

and social security benefit payments. 

See 31 U.S.C. 5 3701(d)(1) and 

3716(h)(3), respectively. Therefore, 

offset of those payments is beyond the 

scope of this rule. In addition, as noted 

in the interim rule, there are many 

statutes and regulations that affect 

federal salary offset, including statutes 

administered by other federal agencies 

such as the Office of Personnel 

Management. See 72 FR 1284. Such 

laws contain additional requirements 

for offset of federal salary payments, 

including the requirement that federal 

employees have an opportunity for a 

hearing by an authority not under the 

control of the creditor agency. See 5 

CFR 550.1104(d)(7). The additional legal 


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56720 Federal Register / Vol. 74, No. 211 / Tuesday, November 3, 2009 / Rules and Regulations 

requirements also have an impact on 

operations of both the States and the 

Federal Government. For these reasons, 

FMS decided not to include 

administrative offset of federal salary 

payments in this rule. 

2. Fees 

The commenter noted that the rule 

provides for FMS to charge a fee to the 

States to recoup FMS’s administrative 

costs, while not providing for the States 

to charge 5515 for their administrative 

costs. The commenter encouraged FMS 

to include a provision for the States to 

charge a fee in the reciprocal 

agreements. The DCIA authorizes FMS 

to charge creditor agencies a fee 

sufficient to cover the full cost of 

implementing administrative offsets. 

See 31 U.S.C. 3716(c)(4). There is no 

authority for States to charge FMS a fee 

or for FMS to pay a fee to the States. 

Therefore, it would be beyond FMS’s 

authority to include a provision for a fee 

in this rule or in the reciprocal 

agreements. 

3. State Legislation 

The commenter noted that States may 

have to pass legislation to allow officials 

other than the governor to sign a 

reciprocal agreement and to authorize 

offset of State payments to collect 

delinquent federal debts. FMS 

anticipates that all States wishing to 

participate in the program authorized by 

this rule will have to enact legislation. 

Both of the States participating in the 

pilot program passed legislation in order 

to implement the program. FMS worked 

closely with those States to ensure that 

the legislative language would be 

sufficient. FMS will continue to assist 

participating States in that effort. 

4. Requirement for a Reciprocal 

Agreement 

The commenter expressed concern 

that use of the program may be hindered 

by the need for a reciprocal agreement 

in States where debt collection is not 

centralized. A reciprocal agreement 

with the State is a statutory 

requirement. See 31 U.S.C. 

3716(h)(1)(B). This rule, therefore, is 

only repeating the requirement 

contained in the statute. To the extent 

this comment is intended to address any 

requirements in the reciprocal 

agreements that the States centralize 

offset operations, such issues are not 

within the scope of this rule. Section 

3716(h)(1)(B) authorizes FMS to include 

in the reciprocal agreements any 

requirements which it considers 

appropriate to facilitate the offset and 

prevent duplicative efforts. FMS has 

chosen not to include the detailed 

operational requirements of the 

reciprocal agreements in this rule, thus 

preserving the flexibility to prescribe 

such terms as may be deemed 

appropriate in the future. This rule, 

therefore, only sets forth the basic 

parameters for the reciprocal agreements 

between FMS and the States. 

Results of the Pilot Program 

The pilot commenced in June 2007. 

Two States—Maryland and New 

Jersey—participated. Collection results 

indicate that the program benefited the 

States as well as the federal agencies. 

The implementation costs for each of 

the two participating States were 

approximately $1 million. As of July 31, 

2008, Maryland had collected over $19 

million, and New Jersey had collected 

over $14 million. 

The estimated implementation costs 

for TOP were $230,000 and for the 

federal agencies were $100,000. As of 

July 31, 2008, TOP had collected a total 

of $5,495,163.28 of federal nontax debts 

from the payments made by Maryland 

and New Jersey. 

While the benefit to the States greatly 

exceeds the benefits to the Federal 

government, the program is nonetheless 

a beneficial collection tool for federal 

agencies. FMS has, therefore, 

determined that the program should 

continue. 

In addition to evaluating the financial 

benefits of the reciprocal offset program, 

FMS analyzed the legal requirements for 

participation in the program. In the 

interim rule, FMS imposed an extra due 

process requirement on the States for 

debts they had submitted for offset 

under section 285.8 of this part. See 

paragraph (f) of this section, ‘‘Debts 

previously submitted by States for tax 

refund offset.’’ Prior to the pilot, if a 

State had already submitted a debt to 

TOP for purposes of federal tax refund 

offset, the State was not required to send 

out another advance due process notice 

informing the debtor that additional 

federal payments would be subject to 

offset to collect that debt. However, 

under the interim rule, a State was 

required to send out a post-offset due 

process notice if a federal payment was 

offset under this section. A comparable 

requirement for post-offset notice was 

imposed on federal agencies, under the 

reciprocal agreements, if a State 

payment was offset to collect a federal 

debt that had been submitted for offset 

prior to promulgation of the interim 

rule. 

The extra notice required by 

paragraph (f) of the interim rule is not 

required by statute. FNS imposed this 

additional notice requirement solely 

because the program was new, and it 

was unknown if there might be 

significant numbers of debtors who 

would claim that they would have 

availed themselves of their due process 

rights earlier if they had known that 

State payments would be subject to 

offset. Such claims did not emerge 

during the pilot, and the post-offset 

notice requirement places an 

unnecessary administrative obligation 

on States without any resulting benefit 

to debtors. FMS has therefore 

determined that this additional notice is 

no longer necessary. Accordingly, 

paragraph (f) has been modified to 

delete the requirement for any postoffset due process notice. 

III. Procedural Analysis 

Administrative Procedures Act 

FMS has determined that good cause 

exists to make this final rule effective 

upon publication without providing the 

30-day period between publication and 

the effective date contemplated by 5 

U.S.C. 553(d). The purpose of a delayed 

effective date is to afford persons 

affected by a rule a reasonable time to 

prepare for compliance. This final rule 

makes only minor changes to the 

currently effective interim final rule and 

provides guidance that is expected to 

facilitate States’ participation in the 

reciprocal offset program. Therefore, 

FMS believes that good cause exists, 

and that it is in the public interest, to 

make this final rule effective upon 

publication. 

Regulatory Planning and Review 

The rule does not meet the criteria for 

a ‘‘significant regulatory action’’ as 

defined in Executive Order 12866. 

Therefore, the regulatory review 

procedures contained therein do not 

apply. 

Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking was required for this rule, 

the provisions of the Regulatory 

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

not apply. 

List of Subjects in 31 CFR Part 285 

Administrative practice and 

procedure, Black lung benefits, Child 

support, Claims, Credit, Debts, 

Disability benefits, Federal employees, 

Garnishment of wages, Hearing and 

appeal procedures, Loan programs, 

Privacy, Railroad retirement, Railroad 

unemployment insurance, Salaries, 

Social Security benefits, Supplemental 

Security Income (SSI), Taxes, Veteran’s 

benefits, Wages. 


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Federal Register / Vol. 74, No. 211 / Tuesday, November 3, 2009 / Rules and Regulations 56721 

■ For the reasons set forth in the 

preamble, 31 CFR part 285 is amended 

as follows: 

PART 285—DEBT COLLECTION 

AUTHORITIES UNDER THE DEBT 

COLLECTION IMPROVEMENT ACT OF 

1996 

■ 1. The authority citation for part 285 

continues to read as follows: 

Authority: 5 U.S.C. 5514; 26 U.S.C. 6402; 

31 U.S.C. 321, 3701, 3711, 3716, 3719, 

3720A, 3720B, 3720D; 42 U.S.C. 664; E.O. 

13019, 61 FR 51763, 3 CFR, 1996 Comp., 

p. 216. 

■ 2. Revise § 285.6, paragraph (f), to 

read as follows: 

285.6 Administrative offset under 

reciprocal agreements with states. 

* * * * * 

(f) State debts submitted to FMS for 

tax refund offset. A State shall be 

deemed to have complied with the 

requirements of paragraph (e)(2) of this 

section with respect to any State debt 

that the State certified to Treasury for 

collection pursuant to § 285.8 of this 

part. 

* * * * * 

Dated: October 23, 2009. 

Richard L. Gregg, 

Acting Fiscal Assistant Secretary. 

[FR Doc. E9–26303 Filed 11–2–09; 8:45 am] 

BILLING CODE 4810–35–M 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 51 and 52 

[EPA–HQ–OAR–2009–0021; FRL–8972–7] 

RIN 2060–AP46 

Administrative Stay of Clean Air 

Interstate Rule for Minnesota; 

Administrative Stay of Federal 

Implementation Plan To Reduce 

Interstate Transport of Fine Particulate 

Matter and Ozone for Minnesota 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This final rule 

administratively stays the effectiveness, 

for Minnesota and Minnesota sources 

only, of two rules issued under section 

110 of the Clean Air Act (CAA) related 

to the interstate transport of pollutants. 

On May 12, 2005, EPA issued the Clean 

Air Interstate Rule (CAIR) requiring 

Minnesota and other states in the 

eastern U.S. to submit State 

Implementation Plan (SIP) revisions to 

limit sulfur dioxide (SO2) and nitrogen 

oxides (NOX) emissions in order to 

eliminate the significant contribution of 

these states to nonattainment for fine 

particulate matter (PM2.5) and/or ozone, 

and eliminates interference with 

maintenance of attainment, in 

downwind states. On April 28, 2006, 

EPA issued Federal Implementation 

Plans (CAIR FIPs) to serve as a backstop 

until replaced by approved SIPs. 

Subsequently, the U.S. Court of Appeals 

for the District of Columbia Circuit 

reversed and remanded CAIR. Among 

other things, the Court held that EPA 

had not properly addressed possible 

errors in analysis supporting the 

inclusion of Minnesota in CAIR for fine 

particulate matter. In this final rule, 

EPA is administratively staying the 

effectiveness of CAIR and the CAIR FIP 

with respect to Minnesota and sources 

in Minnesota only, pending further 

rulemaking in response to the remand. 

DATES: The effective date of this final 

rule is December 3, 2009. 

ADDRESSES: Docket: EPA has established 

a docket for this final rule under Docket 

ID No. EPA–HQ–OAR–2009–0021. All 

documents in the docket are listed on 

the www.regulations.gov Web site. 

Although listed in the index, some 

information is not publicly available, 

e.g., confidential business information 

or other information whose disclosure is 

restricted by statute. Certain other 

material, such as copyrighted material, 

will be publicly available only in hard 

copy. Publicly available docket 

materials are available either 

electronically at www.regulations.gov or 

in hard copy at the EPA Docket Center 

EPA/DC, EPA West, Room 3334, 1301 

Constitution Ave., NW., Washington, 

DC. The Public Reading Room is open 

from 8:30 a.m. to 4:30 p.m., Monday 

through Friday, excluding legal 

holidays. The telephone number for the 

Public Reading Room is (202) 566–1744, 

and the telephone number for the EPA 

Docket Center is (202) 566–1742. 

FOR FURTHER INFORMATION CONTACT: Jeb 

Stenhouse, Program Development 

Branch, Clean Air Markets Division, 

Office of Atmospheric Programs, Mail 

Code 6204J, Environmental Protection 

Agency, Washington, DC 20460, 

telephone number 202–343–9781, fax 

number 202–343–2359, and e-mail 

address stenhouse.jeb@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Outline 

I. Background 

II. What Is the Scope of this Final Rule? 

III. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review 

B. Paperwork Reduction Act 

C. Regulatory Flexibility Act (RFA) 

D. Unfunded Mandates Reform Act 

E. Executive Order 13132: Federalism 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

and Safety Risks 

H. Executive Order 13211: Actions That 

Significantly Affect Energy Supply, 

Distribution, or Use 

I. National Technology Transfer 

Advancement Act 

J. Executive Order 12898: Federal Actions 

To Address Environmental Justice in 

Minority Populations and Low-Income 

Populations 

K. Congressional Review Act 

L. Judicial Review 

I. Background 

Section 110(a)(2)(D)(i)(I) of the CAA 

requires that a state’s SIP prohibit 

emissions by any source or other type of 

emissions activity in the state that will 

‘‘contribute significantly to 

nonattainment in, or interfere with 

maintenance by, any other State’’ with 

respect to any national ambient air 

quality standard (NAAQS). 42 U.S.C. 

7410(a)(2)(D)(i)(I). On May 12, 2005, 

EPA issued CAIR (70 FR 25162, May 12, 

2005). In that rule, EPA found that 28 

states and Washington, DC contribute 

significantly to nonattainment, and 

interfere with maintenance, of the 

NAAQS for fine particulate matter and/ 

or ozone in downwind states. CAIR 

required these upwind states to revise 

their SIPs to include control measures to 

reduce emissions of SO2 and/or NOX

and thereby meet the requirements of 

section 110(a)(2)(D)(i)(I). One of the 

states included in CAIR for fine 

particulate matter, but not for ozone, 

was the State of Minnesota. Minnesota 

was thus required to reduce annual SO2

and annual NOX emissions in 

accordance with the requirements of the 

rule. Further, in CAIR, EPA offered to 

administer, as a remedy through which 

states could comply with CAIR, SO2

annual, NOX annual, and NOX ozone 

season trading programs that states 

could choose to incorporate in their 

SIPs. CAIR included model rules for 

these trading programs and provided 

that states could adopt the model rules 

in their SIPs and thereby incorporate the 

trading programs in the SIPs. 

On April 28, 2006, EPA issued the 

CAIR FIPs (71 FR 25330, April 28 2006). 

In the April 28, 2006, notice, EPA 

promulgated FIPs to implement the 

emission reduction requirements of 

CAIR in each state covered by CAIR 

until the FIP is replaced by an approved 

SIP. EPA issued the CAIR FIPs to 

provide a federal backstop for CAIR. 

EPA decided to adopt as the FIP for 


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