Federal Register / Vol. 72, No. 40 / Thursday, March 1, 2007 / Rules and Regulations 9235 

excluded by the HHS Office of the 

Inspector General from participation in 

Medicare, Medicaid, and/or other 

Federal health care programs, in 

accordance with 42 U.S.C. 1320a–7, 

then that individual or entity is 

prohibited from participating in all 

Federal government procurement and 

nonprocurement programs (42 CFR part 

1001). 

Subpart B—Covered Transactions 

§ 376.220 What contracts and 

subcontracts, in addition to those listed in 

2 CFR 180.220, are covered transactions? 

In addition to the contracts covered 

under 2 CFR 180.220(b), this part also 

applies to all lower tiers of subcontracts 

under covered nonprocurement 

transactions, as permitted under the 

OMB guidance at 2 CFR 180.220(c). (See 

optional lower tier coverage in the 

diagram in the Appendix to 2 CFR part 

180.) 

Subpart C—Responsibilities of 

Participants Regarding Transactions 

§ 376.332 What methods must I use to 

pass requirements down to participants at 

lower tiers with whom I intend to do 

business? 

To communicate the requirements to 

lower-tier participants, you must 

include a term or condition in the 

lower-tier transaction requiring the 

lower-tier participant’s compliance with 

2 CFR part 180, as supplemented by this 

subpart. 

§ 376.370 What are the obligations of 

Medicare carriers and intermediaries? 

Because Medicare carriers, 

intermediaries and other Medicare 

contractors undertake responsibilities 

on behalf of the Medicare program (Title 

XVIII of the Social Security Act), these 

entities assume the same obligations 

and responsibilities as the HHS 

Medicare officials responsible for the 

Medicare Program with respect to 

actions under 2 CFR part 376. This 

would include the requirement for these 

entities to check the Excluded Parties 

List System (EPLS) and take necessary 

steps to effect this part. 

Subpart D—Responsibilities of Federal 

Agency Officials Regarding 

Transactions 

§ 376.437 What method do I use to 

communicate to a participant the 

requirements described in the OMB 

guidance at 2 CFR 180.435? 

To communicate to a participant the 

requirements described in 2 CFR 

180.435, you must include a term or 

condition in the transaction that 

requires the participant’s compliance 

with subpart C of 2 CFR part 180, as 

supplemented by Subpart C of this part, 

and require the participant to include a 

similar term or condition in lower-tier 

covered transactions. 

Subpart E—Excluded Parties List 

System [Reserved] 

Subpart F—General Principles Relating 

to Suspension and Debarment Actions 

[Reserved] 

Subpart G—Suspension [Reserved] 

Subpart H—Debarment [Reserved] 

Subpart I—Definitions 

§ 376.935 Disqualified. (HHS supplement 

to government-wide definition at 2 CFR 

180.935). 

Disqualified means persons 

prohibited from participating in 

specified federal procurement and 

nonprocurement transactions pursuant 

to the statutes listed in 2 CFR 180.935, 

and pursuant to Title XI of the Social 

Security Act (42 U.S.C. 1320a–7, 1320a–

7a, 1320c–5, and 1395ccc) as enforced 

by the HHS Office of the Inspector 

General. 

§ 376.995 Principal (HHS supplement to 

government-wide definition at 2 CFR 

180.995). 

Principal means individuals, in 

addition to those listed at 2 CFR 

180.995, who participate in HHS 

covered transactions including: 

(a) Providers of federally required 

audit services; and 

(b) Researchers. 

Subpart J—[Reserved] 

Title 45—Public Welfare 

CHAPTER I—DEPARTMENT OF HEALTH 

AND HUMAN SERVICES 

PART 74—[AMENDED] 

■ 1. The authority citation for part 74 

continues to read as follows: 

Authority: 5 U.S.C. 301. 

§ 74.13 [Amended] 

■ 2. Section 74.13 is amended by 

revising the citation ‘‘45 CFR part 76’’

to read ‘‘2 CFR part 376.’’

PART 76—[REMOVED] 

■ 3. Remove part 76 from Title 45 CFR. 

[FR Doc. 07–946 Filed 2–27–07; 12:05 pm] 

BILLING CODE 4150–24–P 

NATIONAL FOUNDATION ON THE 

ARTS AND THE HUMANITIES 

2 CFR Part 3369 

45 CFR Part 1169 

RIN 3136–AA29 

Office of the General Counsel; National 

Endowment for the Humanities 

Implementation of OMB Guidance on 

Nonprocurement Debarment and 

Suspension 

AGENCY: National Endowment for the 

Humanities. 

ACTION: Direct final rule. 

SUMMARY: The National Endowment for 

the Humanities (NEH) implements 

Office of Management and Budget 

(OMB) guidance on nonprocurement 

suspension and debarment, issued on 

August 31, 2005 [70 FR 51863], by 

adopting the guidelines in a new part in 

title 2 of the CFR, the Government-wide 

title recently established for OMB 

guidance on grants and agreements, and 

removing 45 CFR part 1169, the part 

containing the NEH implementation of 

the government-wide common rule on 

nonprocurement debarment and 

suspension. This regulatory action 

would make no substantive change in 

NEH policy or procedures for 

nonprocurement debarment and 

suspension. 

DATES: The effective date for this final 

rule is April 2, 2007. 

FOR FURTHER INFORMATION CONTACT: 

National Endowment for the 

Humanities, ATTN: Office of the 

General Counsel, 1100 Pennsylvania 

Avenue, NW., Room 529, Washington, 

DC 20506; or Heather Gottry, (202) 606–

8322. Hearing-impaired individuals are 

advised that information on this matter 

may be obtained by contacting the 

Endowment’s TDD terminal on (202) 

606–8282. 

SUPPLEMENTARY INFORMATION: This final 

rule implements the OMB guidance and 

does not make any changes in current 

policies and procedures. NEH is not 

soliciting public comment on this rule 

and is instead issuing this rule as a 

direct final rule. Under 5 U.S.C. 

553(b)(3)(A) agencies are not required to 

undergo notice and comment procedure 

for ‘‘interpretative rules, general 

statements of policy, or rules of agency 

organization, procedure, or practice.’’

Because this rule adopts OMB’s 

published guidelines, which followed 

notice and comment procedures, and 

collocates NEH’s specific 

nonprocurement suspension and 

debarment rules to title 2 of the CFR, we 


rwilkins on PROD1PC63 with RULES
9236 Federal Register / Vol. 72, No. 40 / Thursday, March 1, 2007 / Rules and Regulations 

believe that it falls under the exception 

cited above. 

Executive Order 12866 

This rule is not significant because 

the replacement of the common rule 

with OMB guidance and a brief NEH 

adopting regulation does not make any 

changes in current policies and 

procedures. 

Regulatory Flexibility Act of 1980 (5 

U.S.C. 605(b)) 

This regulatory action will not have a 

significant adverse impact on a 

substantial number of small entities. 

Unfunded Mandates Act of 1995 (Sec. 

202, Pub. L. 104–4) 

This regulatory action does not 

contain a Federal mandate that will 

result in the expenditure by State, local, 

and tribal governments, in aggregate, or 

by the private sector of $100 million or 

more in any one year. 

Paperwork Reduction Act of 1995 (44 

U.S.C., Chapter 35) 

This regulatory action will not impose 

any additional reporting or 

recordkeeping requirements under the 

Paperwork Reduction Act. 

Federalism (Executive Order 13132) 

This regulatory action does not have 

Federalism implications, as set forth in 

Executive Order 13132. It will not 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. 

List of Subjects in 2 CFR Part 3369 

Administrative practice and 

procedure, Debarment and suspension, 

Grant programs, Reporting and 

recordkeeping requirements. 

■ Accordingly, under the authority of 20 

U.S.C. 959(a)(1), NEH amends title 2, 

subtitle B, and title 45, chapter 1169, of 

the Code of Federal Regulations as 

follows: 

Title 2—Grants and Agreements 

■ 1. Add Chapter 33 to Subtitle B to 

read as follows: 

CHAPTER 33—NATIONAL ENDOWMENT 

FOR THE HUMANITIES 

PART 3369—NONPROCUREMENT 

DEBARMENT AND SUSPENSION 

Sec. 

3369.10 What does this part do? 

3369.20 Does this part apply to me? 

3369.30 What policies and procedures must 

I follow? 

Subpart A—General 

3369.137 Who in the NEH may grant an 

exception to let an excluded person 

participate in a covered transaction? 

Subpart B—Covered Transactions 

3369.220 What contracts and subcontracts, 

in addition to those listed in 2 CFR 

180.220, are covered transactions? 

Subpart C—Responsibilities of Participants 

Regarding Transactions 

3369.332 What methods must I use to pass 

requirements down to participants at 

lower tiers with whom I intend to do 

business? 

Subpart D—Responsibilities of Federal 

Agency Officials Regarding Transactions 

3369.437 What method do I use to 

communicate to a participant the 

requirements described in the OMB 

guidance at 2 CFR 180.435? 

Subpart E–I—[Reserved] 

Authority: 20 U.S.C. 959(a)(1); Sec. 2455, 

Pub. L. 103–355, 108 Stat. 3327; E.O. 12549, 

3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 

CFR, 1989 Comp., p. 235. 

§ 3369.10 What does this part do? 

This part adopts the Office of 

Management and Budget (OMB) 

guidance in Subparts A through I of 2 

CFR part 180, as supplemented by this 

part, as the National Endowment for the 

Humanities (NEH) policies and 

procedures for nonprocurement 

debarment and suspension. It thereby 

gives regulatory effect for the NEH to the 

OMB guidance as supplemented by this 

part. This part satisfies the requirements 

in section 3 of Executive Order 12549, 

‘‘Debarment and Suspension’’ (3 CFR 

1986 Comp., p. 189), Executive Order 

12689, ‘‘Debarment and Suspension’’ (3 

CFR 1989 Comp., p. 235) and 31 U.S.C. 

6101 note (Section 2455, Public Law 

103–355, 108 Stat. 3327). 

§ 3369.20 Does this part apply to me? 

This part and, through this part, 

pertinent portions of the OMB guidance 

in Subparts A through I of 2 CFR part 

180 (see table at 2 CFR 180.100(b)) 

apply to you if you are a—

(a) Participant or principal in a 

‘‘covered transaction’’ (see Subpart B of 

2 CFR part 180 and the definition of 

‘‘nonprocurement transaction’’ at 2 CFR 

180.970). 

(b) Respondent in a NEH suspension 

or debarment action. 

(c) NEH debarment or suspension 

official; 

(d) NEH grants officer, agreements 

officer, or other official authorized to 

enter into any type of nonprocurement 

transaction that is a covered transaction; 

§ 3369.30 What policies and procedures 

must I follow? 

The NEH policies and procedures that 

you must follow are the policies and 

procedures specified in each applicable 

section of the OMB guidance in 

Subparts A through I of 2 CFR part 180, 

as that section is supplemented by the 

section in this part with the same 

section number. The contracts that are 

covered transactions, for example, are 

specified by section 220 of the OMB 

guidance (i.e., 2 CFR 180.220) as 

supplemented by section 220 in this 

part (i.e., § 3369.220). For any section of 

OMB guidance in Subparts A through I 

of 2 CFR 180 that has no corresponding 

section in this part, NEH policies and 

procedures are those in the OMB 

guidance. 

Subpart A—General 

§ 3369.137 Who in the NEH may grant an 

exception to let an excluded person 

participate in a covered transaction? 

The NEH Chairman has the authority 

to grant an exception to let an excluded 

person participate in a covered 

transaction, as provided in the OMB 

guidance at 2 CFR 180.135. 

Subpart B—Covered Transactions 

§ 3369.220 What contracts and 

subcontracts, in addition to those listed in 

2 CFR 180.220, are covered transactions? 

Although the OMB guidance at 2 CFR 

180.220(c) allows a Federal agency to do 

so (also see optional lower tier coverage 

in the figure in the Appendix to 2 CFR 

part 180), NEH does not extend coverage 

of nonprocurement suspension and 

debarment requirements beyond firsttier procurement contracts under a 

covered nonprocurement transaction. 

Subpart C—Responsibilities of 

Participants Regarding Transactions 

§ 3369.332 What methods must I use to 

pass requirements down to participants at 

lower tiers with whom I intend to do 

business? 

You as a participant must include a 

term or condition in lower-tier 

transactions requiring lower-tier 

participants to comply with Subpart C 

of the OMB guidance in 2 CFR part 180, 

as supplemented by this subpart. 

Subpart D—Responsibilities of Federal 

Agency Officials Regarding 

Transactions 

§ 3369.437 What method do I use to 

communicate to a participant the 

requirements described in the OMB 

guidance at 2 CFR 180.435? 

To communicate to a participant the 

requirements described in 2 CFR 


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Federal Register / Vol. 72, No. 40 / Thursday, March 1, 2007 / Rules and Regulations 9237 

180.435 of the OMB guidance, you must 

include a term or condition in the 

transaction that requires the 

participant’s compliance with subpart C 

of 2 CFR part 180, as supplemented by 

Subpart C of this part, and requires the 

participant to include a similar term or 

condition in lower-tier covered 

transactions. 

Subpart E–I—[Reserved] 

Title 45—Public Welfare 

CHAPTER XI—NATIONAL ENDOWMENT 

FOR THE HUMANITIES 

PART 1169—[REMOVED] 

■ 2. Under authority Sec. 2455, Pub. L. 

103–355, 108 Stat. 3327 (31 U.S.C. 6101 

note); E.O. 12549 (3 CFR, 1986 Comp., 

p. 189); E.O. 12689 (3 CFR, 1989 Comp., 

p. 235) part 1169 is removed. 

Heather Gottry, 

Acting General Counsel. 

[FR Doc. E7–3548 Filed 2–28–07; 8:45 am] 

BILLING CODE 7536–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–26356; Directorate 

Identifier 2006–NM–166–AD; Amendment 

39–14963; AD 2007–05–02] 

RIN 2120–AA64 

Airworthiness Directives; Empresa 

Brasileira de Aeronautica S.A. 

(EMBRAER) Model ERJ 170 and ERJ 

190 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all 

EMBRAER Model ERJ 170 and ERJ 190 

airplanes. This AD requires repetitive 

detailed inspections for blockage of the 

pitot drain holes of certain air data 

smart probes (ADSPs), removing 

accumulated moisture from the 

pneumatic passages of the ADSPs, 

related investigative actions, and 

corrective actions if necessary. This AD 

results from reports of erroneous air 

speed indications caused by blockage of 

the pitot sensors due to freezing of 

accumulated moisture in the ADSP 

pneumatic passages. We are issuing this 

AD to prevent an erroneous air speed 

indication, which could reduce the 

flightcrew’s ability to control the 

airplane. 

DATES: This AD becomes effective April 

5, 2007. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in the AD 

as of April 5, 2007. 

ADDRESSES: You may examine the AD 

docket on the Internet at http:// 

dms.dot.gov or in person at the Docket 

Management Facility, U.S. Department 

of Transportation, 400 Seventh Street 

SW., Nassif Building, Room PL–401, 

Washington, DC. 

Contact Empresa Brasileira de 

Aeronautica S.A. (EMBRAER), P.O. Box 

343—CEP 12.225, Sao Jose dos 

Campos—SP, Brazil, for service 

information identified in this AD. 

FOR FURTHER INFORMATION CONTACT: 

Todd Thompson, Aerospace Engineer, 

International Branch, ANM–116, FAA, 

Transport Airplane Directorate, 1601 

Lind Avenue, SW., Renton, Washington 

98057–3356; telephone (425) 227–1175; 

fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Examining the Docket 

You may examine the airworthiness 

directive (AD) docket on the Internet at 

http://dms.dot.gov or in person at the 

Docket Management Facility office 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The Docket Management Facility office 

(telephone (800) 647–5227) is located on 

the plaza level of the Nassif Building at 

the street address stated in the 

ADDRESSES section. 

Discussion 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to all EMBRAER Model ERJ 170 

and ERJ 190 airplanes. That NPRM was 

published in the Federal Register on 

November 20, 2006 (71 FR 67075). That 

NPRM proposed to require repetitive 

detailed inspections for blockage of the 

pitot drain holes of certain air data 

smart probes (ADSPs), removing 

accumulated moisture from the 

pneumatic passages of the ADSPs, 

related investigative actions, and 

corrective actions if necessary. 

Comments 

We provided the public the 

opportunity to participate in the 

development of this AD. We received no 

comments on the NPRM or on the 

determination of the cost to the public. 

Conclusion 

We have carefully reviewed the 

available data and determined that air 

safety and the public interest require 

adopting the AD as proposed. 

Costs of Compliance 

This AD affects about 93 airplanes of 

U.S. registry. The required actions take 

about 2 work hours per airplane, at an 

average labor rate of $80 per work hour. 

Based on these figures, the estimated 

cost of the AD for U.S. operators is 

$14,880, or $160 per airplane, per 

inspection cycle. 

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 have 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. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

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

(3) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

See the ADDRESSES section for a location 

to examine the regulatory evaluation. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 


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