56482 Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Rules and Regulations 

1Public Law 111–203 section 1100E, 124 Stat. 

1376 (2010). 

2 76 FR 18349 (Apr. 4, 2011). 

3 76 FR 78500 (Dec. 19, 2011). 

4See also 12 U.S.C. 5519(b). 

5See comments 2(e)–9 in Supplements I of 12 

CFR part 213 and 12 CFR part 1013. 

dependability, dispatchability, risk, 

diversity, and the ability to verify 

demand-side alternatives. Evaluation 

criteria will be reviewed as the need for 

resources changes or when long-term 

commitments to purchase power expire. 

(d) Evaluation criteria will be 

consistent with Western’s power 

marketing policy, which states that 

Federal power is to be marketed in such 

a manner as to encourage the most 

widespread use thereof at the lowest 

possible rates to consumers consistent 

with sound business principles. The 

policy, found in Delegation Order No. 

00–037.00A, is derived from statutes 

authorizing the sale of power from both 

Department of the Army and 

Department of the Interior hydroelectric 

projects. These statutes include section 

5 of the Flood Control Act of 1944, 16 

U.S.C. 825(s) and section 9(c) of the 

Reclamation Project Act of 1939. 

(e) Resource acquisition planning will 

be consistent with power marketing 

plans and associated contractual 

obligations. 

(f) Resource acquisition decisions will 

be documented and made available to 

Western’s power customers and the 

public. 

§ 905.51 Transmission planning principles. 

Western’s transmission planning is 

conducted to assess the capability of the 

Federal transmission system to provide 

adequate and reliable electric service to 

its customers and the interconnected 

power grid. These planning efforts occur 

as part of its participation in regional 

and sub-regional planning entities as 

well as Western’s Open Access 

Transmission Tariff. 

[FR Doc. 2014–22367 Filed 9–19–14; 8:45 am] 

BILLING CODE 6450–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 213 

[Docket No. R–1495] 

RIN 7100–ZA–09 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1013 

Consumer Leasing (Regulation M) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); and 

Bureau of Consumer Financial 

Protection (Bureau). 

ACTION: Final rule; official 

interpretations and commentary. 

SUMMARY: The Board and the Bureau are 

publishing final rules amending the 

official interpretations and commentary 

for the agencies’ regulations that 

implement the Consumer Leasing Act 

(CLA). The Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) amended the CLA by 

requiring that the dollar threshold for 

exempt consumer leases be adjusted 

annually by any annual percentage 

increase in the Consumer Price Index 

for Urban Wage Earners and Clerical 

Workers (CPI–W). Based on the annual 

percentage increase in the CPI–W as of 

June 1, 2014, the Board and the Bureau 

are adjusting the exemption threshold to 

$54,600, effective January 1, 2015. 

Because the Dodd-Frank Act also 

requires similar adjustments in the 

Truth in Lending Act’s threshold for 

exempt consumer credit transactions, 

the Board and the Bureau are making 

similar amendments to each of their 

respective regulations implementing the 

Truth in Lending Act in a rule 

published elsewhere in the Federal 

Register. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Board: Vivian W. Wong, Counsel, 

Division of Consumer and Community 

Affairs, Board of Governors of the 

Federal Reserve System, at (202) 452– 

3667; for users of Telecommunications 

Device for the Deaf (TDD) only, contact 

(202) 263–4869. 

Bureau: David Friend, Counsel, Office 

of Regulations, Bureau of Consumer 

Financial Protection, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act of 2010 

(Dodd-Frank Act) increased the 

threshold in the Consumer Leasing Act 

(CLA) for exempt consumer leases from 

$25,000 to $50,000, effective July 21, 

2011.1 In addition, the Dodd-Frank Act 

requires that this threshold be adjusted 

annually for inflation by the annual 

percentage increase in the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W), as published 

by the Bureau of Labor Statistics. In 

April 2011, the Board issued a final rule 

amending Regulation M (which 

implements the CLA) consistent with 

these provisions of the Dodd-Frank 

Act.2

Title X of the Dodd-Frank Act 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from the Board to the 

Bureau, effective July 21, 2011. In 

connection with this transfer of 

rulemaking authority, the Bureau issued 

its own Regulation M implementing the 

CLA in an interim final rule, 12 CFR 

part 1013 (Bureau Interim Final Rule).3

The Bureau Interim Final Rule 

substantially duplicated the Board’s 

Regulation M, including the revisions to 

the threshold for exempt transactions 

made by the Board in April 2011. 

Although the Bureau has the authority 

to issue rules to implement the CLA for 

most entities, the Board retains 

authority to issue rules under the CLA 

for certain motor vehicle dealers 

covered by section 1029(a) of the DoddFrank Act, and the Board’s Regulation 

M continues to apply to those entities.4

Section 213.2(e)(1) of the Board’s 

Regulation M and § 1013.2(e)(1) of the 

Bureau’s Regulation M, and their 

accompanying commentaries, provide 

that the exemption threshold will be 

adjusted annually effective January 1 of 

each year based on any annual 

percentage increase in the CPI–W that 

was in effect on the preceding June 1. 

Any increase in the threshold amount 

will be rounded to the nearest $100 

increment. For example, if the annual 

percentage increase in the CPI–W would 

result in a $950 increase in the 

threshold amount, the threshold amount 

will be increased by $1,000. However, if 

the annual percentage increase in the 

CPI–W would result in a $949 increase 

in the threshold amount, the threshold 

amount will be increased by $900.5

II. Adjustment and Commentary 

Revision 

Effective January 1, 2015, the adjusted 

exemption threshold amount is $54,600. 

This adjustment is based on the CPI–W 

index in effect on June 1, 2014, which 

was reported on May 15, 2014. The 

Bureau of Labor Statistics publishes 

consumer-based indices monthly, but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of the month. The CPI–W is a subset of 

the CPI–U index (based on all urban 

consumers) and represents 

approximately 28 percent of the U.S. 

population. The adjustment reflects a 2 

percent increase in the CPI–W from 

April 2013 to April 2014 and is rounded 

to the nearest $100 increment. 

Accordingly, the Board and the Bureau 

are revising the commentaries to their 

respective regulations to add new 

comment 2(e)–9.vi stating that, from 

January 1, 2015 through December 31, 


asabaliauskas on DSK5VPTVN1PROD with RULES
Federal Register / Vol. 79, No. 183 / Monday, September 22, 2014 / Rules and Regulations 56483 

6See 5 U.S.C. 553(b)(B). 

7See 5 U.S.C. 603 and 604. 

8 44 U.S.C. 3506; 5 CFR 1320. 

2015, the threshold amount is $54,600. 

These revisions are effective January 1, 

2015. 

III. Administrative Law Matters 

Administrative Procedure Act 

Under the Administrative Procedure 

Act, notice and opportunity for public 

comment are not required if the Board 

and the Bureau find that notice and 

public comment are impracticable, 

unnecessary, or contrary to the public 

interest.6 This annual adjustment is 

required by statute. The amendment in 

this notice is technical and nondiscretionary, and it applies the method 

previously established in the agencies’ 

regulations for determining adjustments 

to the exemption threshold. For these 

reasons, the Board and the Bureau have 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary. Therefore, the 

amendments are adopted in final form. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.7 As noted previously, 

the agencies have determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this joint 

final rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,8 the agencies 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

List of Subjects 

12 CFR Part 213 

Advertising, Consumer leasing, 

Consumer protection, Federal Reserve 

System, Reporting and recordkeeping 

requirements. 

12 CFR Part 1013 

Advertising, Consumer leasing, 

Reporting and recordkeeping 

requirements. 

Board of Governors of the Federal 

Reserve System 

Text of Final Revisions 

For the reasons set forth in the 

preamble, the Board amends Regulation 

M, 12 CFR part 213, as set forth below: 

PART 213—CONSUMER LEASING 

(REGULATION M) 

■ 1. The authority citation for part 213 

is revised to read as follows: 

Authority: 15 U.S.C. 1604 and 1667f; Pub. 

L. No. 111–203 section 1100E, 124 Stat. 1376. 

■ 2. In Supplement I to Part 213, under 

Section 213.2—Definitions, under 2(e) 

Consumer Lease, paragraph 9.vi is 

added to read as follows: 

Supplement I to Part 213—Official Staff 

Interpretations 

* * * * * 

Section 213.2—Definitions 

* * * * * 

2(e) Consumer lease. 

9. Threshold amount. * * * 

vi. From January 1, 2015 through December 

31, 2015, the threshold amount is $54,600. 

* * * * * 

Bureau of Consumer Financial 

Protection 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau amends 

Regulation M, 12 CFR part 1013, as set 

forth below: 

PART 1013—CONSUMER LEASING 

(REGULATION M) 

■ 1. The authority citation for part 1013 

is revised to read as follows: 

Authority: 15 U.S.C. 1604 and 1667f; Pub. 

L. 111–203 section 1100E, 124 Stat. 1376. 

■ 2. In Supplement I to part 1013, under 

Section 1013.2—Definitions, under 2(e) 

Consumer Lease, paragraph 9.vi is 

added to read as follows: 

Supplement I to Part 1013—Official 

Interpretations 

* * * * * 

Section 1013.2—Definitions 

* * * * * 

2(e) Consumer Lease. * * * 

9. Threshold amount. * * * 

vi. From January 1, 2015 through December 

31, 2015, the threshold amount is $54,600. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, September 8, 2014. 

Robert deV. Frierson, 

Secretary of the Board. 

Dated: September 3, 2014. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2014–21847 Filed 9–19–14; 8:45 am] 

BILLING CODE 6210–01–P; 4810–AM–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Docket No. R–1494] 

RIN 7100 ZA–08 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Truth in Lending (Regulation Z) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); and 

Bureau of Consumer Financial 

Protection (Bureau). 

ACTION: Final rule; official 

interpretations and commentary. 

SUMMARY: The Board and the Bureau are 

publishing final rules amending the 

official interpretations and commentary 

for the agencies’ regulations that 

implement the Truth in Lending Act 

(TILA). The Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) amended TILA by 

requiring that the dollar threshold for 

exempt consumer credit transactions be 

adjusted annually by any annual 

percentage increase in the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W). Based on the 

annual percentage increase in the CPI– 

W as of June 1, 2014, the Board and the 

Bureau are adjusting the exemption 

threshold to $54,600, effective January 

1, 2015. 

Because the Dodd-Frank Act also 

requires similar adjustments in the 

Consumer Leasing Act’s threshold for 

exempt consumer leases, the Board and 

the Bureau are making similar 

amendments to each of their respective 

regulations implementing the Consumer 

Leasing Act in a joint rulemaking 

published elsewhere in this issue of the 

Federal Register. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Board: Vivian W. Wong, Counsel, 

Division of Consumer and Community 

Affairs, Board of Governors of the 

Federal Reserve System, at (202) 452– 


asabaliauskas on DSK5VPTVN1PROD with RULES