""



### Federal Register/Vol. 63. No. 65/Monday, April 6, 1998/Proposed Rules 

## C16707

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy



### 10 CFR Part

### 430

[Docket Number EE-TP-98-101]
Workshop Regarding Test Procedures, Labeling, Standards Compliance, and Related Matters for Commercial Water Heaters, Boilers, Furnaces, Air Conditioners, and Heat Pumps

AGENCY: 

### Office ofEnergy Efficiency and 'Renewable Energy. Department of Energy.
ACTION: 

### Notice ofpublic workshop.

SUMMARY: 

### The Department ofEnergy (DOE) will hold an informal public workshop to discuss issues and gather information related to DOE's development ofproposed rules for energy efficiency test procedures. labeling. and standards compliance as they relate to commercial water heaters. boilers. furnaces. air conditioners. and heat pumps. All persons are hereby given'notiCe ofthe opportunity to 

### auend and participate in this public workshop and to submit written comments.

DATES: 

### The public workshop will be held On Tuesday. April 14. 1998. from 9 a.m. until 4:45 p.m

.. and on

. Wednesday. April 15. 1998. from 9 a.m. to 3:30 p.m.
ADDRESSES: 

### The workshop will be held at the U.S. Department ofEnergy. Forrestal Building. Room lE-245. 1000 Independence Avenue. SW. Washington. DC 20585.

,

Written comments are welcome. especially following the workshop. Please submit 10 copies (no faxes) and

a computer diskette (WordPerfect 6.1) to: Ms. Brenda Edwards-Jones. U.S. Department ofEnergy. Office ofEnergy Efficiency and Renewable Energy. "Energy Conservation Program for CommerCial Products: Water Heaters. Boilers. Furnaces. Air Conditioners. and Heat Pumps. Docket No. EE-TP-98- 101." EE-43. 1000 Independence Avenue. SW. Washington. DC 20585- 0121. Telephone: (202) 586-2945; Telefax: (202) 586-4617.

Copies ofthe transcript ofthe public workshop. public comments received. and this notice may be read (or copied) auhe Freedom ofInformation Reading Room. U.S. Departmem ofEnergy. Forrestal Building. Room lE-190. 1000 Independence Avenue. SW. Washington. DC20585. (202) 586-3142. between the hours of9 a.m. and 4 p.m

.. Monday through Friday. except Federal holidays. FOR FURTHER INFORMAnON CONTACT: 

### TheDepartment is preparinga paper Cyrus Nasseri. U.S. Department of entitled. "Issues Paper for the Energy. Office ofEnergy Efficiency and Commercial Water Heaters. Boilers. Renewable Energy. EE-43. 1000 Furnaces. AirConditioners. and Heat Independence Avenue. SW. ' PumpsWorkshop onApril 14 and 15. Washington. DC 20585-0121. (202) 586- 1998." that explains and discusses these 9138. e-mail: cyrus.nasseri@ee.doe.gov: issues ingreater detail. Copieswill be



### or Edward Levy. Esq

.. U.S. Department

. available on request. For many ofthe ofEnergy. Office ofGeneral Counsel. issues. the papersets forth alternative GC-72. 1000 Independence Avenue. approaches that the Department is 

### SW. Washington. DC 20585. (202) 586- considering to include in the 

### Notice of 9507. e-mail: edward.levy@hq.doe.gov. Proposed Rulemaking.
SUPPLEMENTARY INFORMAnDN:

### The TheDepartment is particularly Department ofEnergy is drafting a interested inreceiving attheworkshop proposed rule to implement the Energy comments and views ofinterested Policy and Conservation Act (EPCA) parties concerning: (1) 

### Theabove-listed provisions for energy effiCiency test issues: (2) alternative approaches the procedul'es. labeling. and standards Department is consideringfor compliance concerning commercial addressing these iSSues: (3) information water heaters. boilers. furnaces. air that the National Institute ofStandards conditioners. and heatpumps. 42 U.s.C. and Technology should take into 6314-6316. While EPCA calls for account in interpretingASHRAE adoption oftest procedures referenced Standard 90.1 test procedures for in the American Society ofHeating. commercial waterheaters. boilers. Refrigerating and Air-Conditioning furnaces. air conditioners. and heat Engineers. Inc. (ASHRAE). Standard pumps for DOE's consideration: and (4) 

### 90.1. several issues have been raised anyviable alternativesthatmay have concerning how the Standard should be been overlooked in the preparation of interpreted. The purpose ofthe public the issue paper. The Department workshop is to discuss the following encourages those who wish to issues for developing the notice of participate in the workshop to obtain proposed rulemaking: the issue paperand to make

a. Clarification ofcoverage and presentations that address its contents. category definitions in reference Workshop participants need not limit standards for commercial waterheaters: theirstatementsto those topiCS.

b. Determination ofprocedures for however. The Department is interested measuring insulation value and heat in receiving viewsconcerning other loss in unfired commercial hotwater issues thatparticipants believe would storage tanks:

. affect the content oftest procedures.

c. Definition of"packaged" boiler for labeling. and standards compliance for purposes ofthe proposed rulemaking: commercialwaterheaters. boilers.

d. Treatment of"jacket losses" in furnaces. airconditioners. and heat combustion and thermal efficiency pumps. calculations: The meetingwill be 

### conducted in an

e. Uniformity oftest conditions. informal. conference style. A court procedures. and setuprequirements reporterwill be presentto record the

across different types ofcommercial minutes ofthemeeting. There shallbe boilersand furnaces;

, nodiscussion ofproprietary

,



## r. Appropriate treatment of information, costs orprices. market commercial boilers and furnaces with shares. or other commercial mCltters unusual features for speCialized regulated underantitrust law. After the applications: meeQng and period for written

g. Correct external static pressure test, comments. the Departmentwill conditions for commercial air considerthe views presented in conditioners and heat pumps in light of formulating a Notice ofProposed typical outlet duct pressures observed in Rulemaking regarding energyefficiency buildings: testprocedures. labeling. and standards

h. Determination ofcost-effective and compliance as they relate to commercial reliable statistical samplingregimes for water heaters. boilers. furnaces. air standard certification and enforcement: conditioners. and heat pumps. ,

1. 

### Identification ofpractical If

### you would like to participate in the certification and enforcement testing workshop. to receive workshop regimes for products with low materials. orto be added to the DOE productionvolumes; mailing list to receive future notices and

j. Determination ofthe information information regarding commercial water that should be displayed on certification heaters. boilers. furnaces. air labels: and conditioners. and heatpumps. please

k. Effective schemes for labeling contact Ms. BrendaEdwards-Jones. mixed component systems. (202)586-2945.

### 16708: Federal Register/Vol. 63. No. 65/Monday. April 6. 1998/Proposed Rules

Issued in Washington. DC. on April 1. 1998. DanW. Reicher.
AssistantSecretary. EnergyEfficiencyand RenewableEnergy.
IFR Doc. 98-8952 Filed 4-3-98: 8:45 ami

BILLING CODE 645G-Ol-1'



### .DEPARTMENTOFTHETREASURV
Comptroller of the Currency


### 12 CFR Part28 [Docket No. 98-06]

RIN 1557-AB58

International Banking Activities

AGENCY: Office ofthe Comptroller ofthe Currency. Treasury.
ACTION: Notice ofproposed rulemaking.

SUMMARY: The Office ofthe Comptroller ofthe Currency (OCC) is proposing to amend its regulation governing international lending. by simplifying the discussion concerning the accounting for fees on international loans to make the regulation consistent with generallv accepted accounting principles (GAAP). This proposal also makes other changes
to subpart C that are intended to clarify and simplify the rule.
DATES: Comments must be received on

or beforejune 5. 1998.
ADDRESSES: Written comments should be submitted to Docket No. 98-06. Communications Division. Third Floor. Office ofthe Comptroller ofthe Currency. 250 EStreet. S.W

.. Washington. D.C. 20219. In addition.
comments may be sent by facsimile transmission to FAX number (202)-874- 5274. or by electronic mail to regs.comments@occ.treas.gov. Comments will be available for inspection and photocopying at that address.
FOR FURTHER INFORMATlON CONTACT: Tom Rees. Professional Accounting FelIow. Bank Supervision Policy. (202) 874- 5180:john Abbott. Deputy Comptroller. International Banking & Finance. (202) 874-4730: Raija Bettauer. Counselor for International Activities. (202) 874-0680:

or Saumya 

### R. Bhavsar. Attorney. Legislative and Regulatory Activities. (202) 874-5090.

SUPPLEMENTARY INFORMATlON: Background

The International Lending Supervision Act of 1983 (ILSA)

. 12 U.s.C. 3901 

### et seq

.. reqUires each Federal banking agency to evaluate the foreign country exposure and transfer risk ofbanks within itsjurisdiction for use in the examination and supervision ofthese banks. To implement this provision. the Federal banking agenCies. through the Interagency Country Exposure Review Committee (lCERC).

assess and categorize countries based on economic. socia!. and political conditions thatmay lead to increased transfer risk. "Transferrisk" arises from

an obligor's inability to perform on its debt obligations usingthe agreed-upon currencydue to the actions ofthe governmentthat controls that currency. These actions include instances where a country is unable or unwilling to provide the necessary foreign exchange. because of. for example. a balance of trade defiCit or currency restrictions.

In addition. ILSA directs each Federal banking agency to require banks to establish and maintain a special reserve whenever the agency determines either that the quality ofa bank's international
assets (i.e

.. those assets included on a bank's Country Exposure Report. fonn FFIEC 009) has been impaired by the protracted inability ofpublic or private borrowers in a foreign country to make payments on theirexternal indebtedness; orthat there are no definite prospects for the orderly restoration ofdebt service. 12 U.s.C. 3904(a)(1)

.. ILSA also reqUires that these

reserves be charged against current income and not considered as part of capital and surplus or allowances for possible loan losses. 12 U.S.C. 3904(a)(2) .

Subpart C of 12 CFR part 28 implements ILSA and requires national banks and District ofColumbia banks to establish reserves. referred to as allocated transfer risk reserves (ATRR). against potential losses on banks' foreign loans due to certain countries' transfer risk. SubpartC also sets forth the accounting treatment for various fees received by banks when making international loans and contains explicit requirements for the reporting and disclosure ofinternational assets.

Onjuly5. 1995 (60 FR 34907). the OCC published proposed changes to 12 CFR parts 20 and 28. which set out the OCC's rules governing the international operations ofdomestiC branches and Federal branches and agenCies offoreign banks. The proposed changes included substantive modifications to part 28 and

a consolidation ofall the provisions relating to international banking that

were previously contained in parts 20 and 28 into one CFR part. part 28. These proposed changeswere part ofthe OCC's Regulation Review Program to update and streamlineregulations and
to eliminate requirements that impose inefficient and costly regulatory burdens

on national banks. At thattime the OCC did not propose changes to subpart C of part 28 but invited public comment on subpart C in order to bring to the OCC's attention issues that could warrant consideration in a subsequent rulemaking.

On May 2.1996 (61 FR 19524). the OCC published a final rule on part 28. In the preamble to the final rule. the OCC noted that ithad received one commenton subpart C ofpart 28 and that the commenterrecommended that the accounting provisions be amended
to be uniform among the Federal banking agenCies and consistent with GAAP. In response. the OCC stated in the preamble that it would address the issue raised by the commenterafter further review ofthe rules in question.

For the reasons discussed below. the OCC is proposingto amend subpart C consistent with the commenter's suggestion. This proposal does not. however. amend the othertwo substantive provisions in subpart C dealing with the ATRR and reporting

. and disclosure ofinternational assets. The OCC invites comment on any aspect ofthis proposal.
Discussion ofProposal 

### Accounting TreatmentforFees on International Loans (§

### 2B.53)

Current § 28.53 provides a lengthy discussion on the separateaccounting
treatment for each type offee charged by banks in connectionwith their international lending. This proposal revises that section by replacing the discussion ofthe accounting treatment with a statement that banks are to account for fees on international loans in accordance with GAAP.

ILSA reqUires the Federal banking agencies to issue regulations for accounting for fees charged by banks in connection with international loans. (12 U.S.C. 3905(a)(2)(A». In order to avoid excessive debt service burden on debtor countries. section906(a) ofILSA (12 U.S.C. 3905(a» prohibits a bank. in connection with restructuring an international loan, from chargingfees·in

an amount thatexceedsthe administrative costs ofrestructuring the loan. unless thefee is amortized over the life ofthe loan. Section 906(b) of ILSA (12 U.s.C. 3905(b» requires the Federal banking agenCies to issue regulations prescribingthe accounting
treatment for agency. commitment. management, and otherfees in connection with international loans to

assure that the appropriate portion of such fees is accrued in income over the effective life ofeach such loan.

When ILSA was enacted in 1983 and the Federal bankingagencies' final rule