Federal Register / Vol. 72, No. 53 / Tuesday, March 20, 2007 / Proposed Rules 13059 

Drafting Information 

The principal author of these 

regulations is Lisa S. Dobson of the 

Office of the Associate Chief Counsel 

(Corporate). However, other personnel 

from the IRS and Treasury Department 

participated in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 1 is 

proposed to be amended as follows: 

PART 1—INCOME TAXES 

Paragraph 1. The authority citation 

for part 1 continues to read, in part, as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Par. 2. Section 1.368–1 is amended 

by: 

1. Revising paragraph (e)(2). 

2. Revising and redesignating the text 

of paragraph (e)(8) as paragraph (e)(8)(i). 

3. Adding paragraph (e)(8)(ii). 

The revisions and addition read as 

follows: 

§ 1.368–1 Purpose and scope of exception 

of reorganization exchanges. 

[The text of the proposed amendment 

to § 1.368–1(e)(2) and (e)(8) is the same 

as the text of § 1.368–1T(e)(2) and (e)(8) 

published elsewhere in this issue of the 

Federal Register]. 

Kevin M. Brown, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E7–5045 Filed 3–19–07; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 70 

[Docket No. EPA–R02–OAR–2006–0963; 

FRL–8289–4] 

Clean Air Act Title V Operating Permit 

Program Revision; New Jersey 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is proposing to approve a 

revision to the New Jersey title V 

Operating Permit Program submitted by 

the New Jersey Department of 

Environmental Protection (NJDEP) on 

October 4, 2006. The New Jersey 

Operating Permit Program is 

implemented through its Operating 

Permits Rule, codified at Subchapter 22 

of Chapter 27 of Title 7 of the New 

Jersey Administrative Code. The 

October 4, 2006 revision changes the 

title V fee program that funds the New 

Jersey Operating Permit Program, and 

various sections of the Operating 

Permits Rule relating to definitions, 

general provisions, general application 

procedures, operating permit 

application contents and completeness 

review. These changes resulted in both 

substantial and nonsubstantial revisions 

to New Jersey’s Operating Permit 

Program. EPA is proposing to approve 

these revisions. The intended affect of 

this action is to improve the State’s 

Operating Permit Program. 

DATES: Comments must be received on 

or before April 19, 2007. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R02–

OAR–2006–0963, by one of the 

following methods: 

• www.regulations.gov: Follow the 

on-line instructions for submitting 

comments. 

• E-mail: Werner.Raymond@epa.gov 

• Fax: 212–637–3901. 

• Mail: Raymond Werner, Chief, Air 

Programs Branch, Environmental 

Protection Agency, Region 2 Office, 290 

Broadway, 25th Floor, New York, New 

York 10007–1866. 

• Hand Delivery: Raymond Werner, 

Chief, Air Programs Branch, 

Environmental Protection Agency, 

Region 2 Office, 290 Broadway, 25th 

Floor, New York, New York 10007–

1866. Such deliveries are only accepted 

during the Regional Office’s normal 

hours of operation. The Regional 

Office’s official hours of business are 

Monday through Friday, 8:30 to 4:30 

excluding Federal holidays. 

Instructions: Direct your comments to 

Docket ID No. EPA–R02–OAR–2006–

0963. EPA’s policy is that all comments 

received will be included in the public 

docket without change and may be 

made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit information that you 

consider to be CBI or otherwise 

protected through www.regulations.gov 

or e-mail. The www.regulations.gov Web 

site is an ‘‘anonymous access’’ system, 

which means EPA will not know your 

identity or contact information unless 

you provide it in the body of your 

comment. If you send an e-mail 

comment directly to EPA without going 

through www.regulations.gov your email address will be automatically 

captured and included as part of the 

comment that is placed in the public 

docket and made available on the 

Internet. If you submit an electronic 

comment, EPA recommends that you 

include your name and other contact 

information in the body of your 

comment and with any disk or CD–ROM 

you submit. If EPA cannot read your 

comment due to technical difficulties 

and cannot contact you for clarification, 

EPA may not be able to consider your 

comment. Electronic files should avoid 

the use of special characters, any form 

of encryption, and be free of any defects 

or viruses. For additional information 

about EPA’s public docket visit the EPA 

Docket Center homepage at http://www.

epa.gov/epahome/dockets.htm. 

FOR FURTHER INFORMATION CONTACT: 

Suilin Chan, Air Programs Branch, 

Environmental Protection Agency, 290 

Broadway, 25th Floor, New York, New 

York 10007–1866, (212) 637–4019. 

SUPPLEMENTARY INFORMATION: This 

section provides additional information 

by addressing the following questions: 

I. Background 

The Clean Air Act (the Act) 

Amendments of 1990 required all states 

to develop Operating Permit Programs 

pursuant to title V of the Act, 42 U.S.C. 

7661–7661f, and the regulations 

promulgated under title V, which are 

found at 40 CFR part 70. EPA granted 

interim approval (effective June 17, 

1996) of the Operating Permit Program 

submitted by New Jersey in response to 

this directive. 61 FR 24715 (May 16, 

1996); 40 CFR part 70, Appendix A. 

Effective November 30, 2001, EPA 

granted full approval to New Jersey’s 

title V Operating Permit Program. 66 FR 

63168 (December 5, 2001). 

The current revision to the Operating 

Permits Rule adjusts the title V fee 

schedules to conform with the Omnibus 

Legislation adopted by the New Jersey 

state legislature in 2002, and ensures 

that requisite funding needs of the New 

Jersey Operating Permit Program are 

met. The revised Operating Permits Rule 

also includes changes that improve New 

Jersey’s Operating Permit Program. New 

Jersey submitted its program revision 

request to the EPA on October 4, 2006. 

The revision request describes the 

specific changes made to New Jersey’s 

Operating Permits Rule. 

II. What Is Being Addressed in This 

Action? 

In today’s action, EPA is proposing to 

approve revisions to N.J.A.C. 7:27–22, as 

identified below, which NJDEP adopted 


erjones on PRODPC74 with PROPOSALS
13060 Federal Register / Vol. 72, No. 53 / Tuesday, March 20, 2007 / Proposed Rules 

on June 9, 2006, and submitted to EPA 

for approval on October 4, 2006. 

A. Definitions 

NJDEP revised N.J.A.C. 7:27–22.1 to 

delete definitions that have become 

unnecessary because of the changes 

made to the Operating Permits Rule. 

The terms ‘‘Category I’’ and ‘‘Category 

II’’ are deleted because they are no 

longer used by NJDEP in determining 

title V fees for significant permit 

modifications under the new fee 

schedules. Significant modifications 

used to be classified as ‘‘Category I’’ (for 

which lesser fees were charged), or 

‘‘Category II’’ (for which higher fees 

were charged). The differences in fees 

were based on the assumption that 

Category I source types are either not 

required to meet, or have already met, 

‘‘state of the art’’ emission control 

requirements thereby obviating the need 

for review in this regard. However, the 

revised rule eliminates this 

presumption. All applications for 

significant permit modifications will be 

screened first to determine what level of 

review is needed, which in turn 

determines the amount of fees required 

pursuant to the revised fee schedules 

found at N.J.A.C. 7:27–22.31(r) and (s). 

A definition for ‘‘probe’’ has been 

added to the definitions section to aid 

in assessing the appropriate fees for 

stack test protocol reviews. The amount 

of fees charged is based on the number 

of probes used in the stack test. 

Definitions for ‘‘registration,’’

‘‘registration form,’’ and ‘‘registrant,’’

are also added to the definitions section 

because these terms are used in the new 

application procedures established 

under N.J.A.C. 7:27–22.14. Facilities 

may apply for a general operating 

permit by submitting the appropriate 

registration form. 

DEP also added to the definitions 

section the terms ‘‘on-specification used 

oil,’’ ‘‘space heater,’’ and ‘‘used oil’’ as 

they were defined in N.J.A.C. 7:27–20.1 

(Used Oil Combustion Rule). These 

terms were not previously defined in 

N.J.A.C. 7:27–22 and are now added to 

maintain consistency between N.J.A.C. 

7:27–20 and N.J.A.C. 7:27–22. 

B. General Provisions 

DEP amended N.J.A.C. 7:27–22.3(rr) 

to clarify the application procedures 

pertaining to environmental 

improvement pilot tests. Previously, the 

rule stated that environmental 

improvement pilot test approvals may 

be renewed by application but did not 

provide more details on the renewal 

process. The revised rule clarifies that a 

new application for preconstruction 

approval must be submitted if an 

environmental improvement pilot test 

needs to be extended for up to an 

additional 90 days after the expiration 

of the initially approved 90-day period. 

C. General Application Procedures 

NJDEP revised N.J.A.C. 7:27–22.4 to 

establish milestones for phasing out 

paper application submissions, and 

phasing in electronic submission of all 

applications, except for renewals. 

Electronic submission includes a nonInternet-based electronic system known 

as RADIUS, or an internet-based system 

known as e-NJEMS. The revisions in 

this section of the rule provide 

incentives, such as lower fees, to 

encourage electronic filing. 

D. Operating Permit Application 

Contents 

NJDEP amended N.J.A.C. 7:27–22.6(a) 

to eliminate the requirement that 

application fees be submitted with an 

application in order for it to be deemed 

administratively complete. Fees are no 

longer required to accompany an 

application. Instead, NJDEP will 

determine the appropriate fees upon 

receipt of an application in accordance 

with the new fee schedules found at 

N.J.A.C. 7:27–22.31(r) and (s). The fee 

information is forwarded to the 

Department of Treasury for billing and 

collection. 

E. Completeness Review 

NJDEP amended N.J.A.C. 7:27–

22.10(f) by replacing the word ‘‘the’’

before ‘‘fee requirement’’ with the word 

‘‘any.’’ Under the revised rule, certain 

applications require no fees. The word 

‘‘any’’ is intended to indicate that there 

may or may not be a fee required for an 

application. 

F. Title V Fees 

NJDEP revised N.J.A.C. 7:27–22.31(a), 

(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), 

(m), (p), (r), (s), (t) and (u) to establish 

or revise the Base and Supplementary 

Fee Schedules for various title V 

permitting activities in order to conform 

with the Omnibus Fee Legislation of 

2002, and to assure adequate funding for 

New Jersey’s title V Operating Permit 

Program. NJDEP deleted all provisions 

that applied to past fiscal years and 

added new provisions in accordance 

with the new fee schedules. A summary 

of the changes made to N.J.A.C. 7:27–

22.31 follows. 

Previously, NJDEP charged fees for 

processing minor and significant permit 

modifications based on the number of 

significant source operations being 

modified for fiscal years prior to 1998. 

The revised rule requires no fee for 

minor modifications but increases fees 

for significant modifications and 

applications for environmental 

improvement pilot tests. Also, new fees 

are added for operating permit renewal 

applications and registration under a 

general operating permit for used-oil 

space heaters. 

NJDEP also revised the rule to clarify 

that the emissions-based fees must be 

submitted by subject facilities every 

year. The annual emissions-based fee 

rate was increased from $25 to $60 per 

ton of regulated pollutant in 1989 

dollars, adjusted by the Consumer Price 

Index (CPI) as required by the 2002 

Omnibus Legislation. Provisions have 

been included in the revised rule to 

keep the existing annual emission fee 

rate unchanged should the CPI drop to 

a negative value in any given year. The 

minimum annual emissions-based fees 

have been increased from $1,000 to 

$3,000 per facility. The annual 

emissions fee exemption for carbon 

monoxide (CO) was deleted in the 

revised rule because it was valid from 

1998 through 2002 only. CO emissions 

are no longer exempted from fee 

calculations from FY 2003 forward. 

However, the revised rule does exempt 

carbon dioxide emissions from fees as 

an incentive to encourage dry cleaners 

to replace dry cleaning equipment that 

uses perchloroethylene, a known 

carcinogen, with equipment that uses 

the non-harmful liquid carbon dioxide 

as its sole dry cleaning agent. 

The fee collection process has been 

changed to implement New Jersey’s 

‘‘uniform process.’’ Previously, facilities 

were required to submit all required fees 

with or before the applications for 

initial permits, and with applications 

for modifications. The revised rule no 

longer requires the requisite fees to be 

determined by the applicants and 

submitted with the applications. Under 

the revised rule, fees are determined by 

NJDEP’s Bureau of Operating Permits 

upon receipt of applications for initial 

permits, significant modifications, or 

renewals. The New Jersey Treasury 

Department bills and collects the fees. 

The bases used in calculating the fees 

for each application are stipulated in 

N.J.A.C. 7:27–22.31. To better track who 

has paid the required fees, the option to 

pay by money order is eliminated. 

G. Appendix 

DEP corrected a typographical error 

found in Table B of the Appendix of the 

New Jersey Operating Permits Rule 

which incorrectly listed ‘‘2- 

Methoxyethanol’’ with CAS number 

108864. The correct CAS number for ‘‘2- 

Methoxyethanol’’ is 109864. 


erjones on PRODPC74 with PROPOSALS
Federal Register / Vol. 72, No. 53 / Tuesday, March 20, 2007 / Proposed Rules 13061 

III. What Is Our Proposed Action? 

EPA is proposing to approve revisions 

to New Jersey’s regulations as described 

above. The State of New Jersey has 

adopted the above rule revisions in 

accordance with state rulemaking 

procedures. EPA is therefore proposing 

to approve the revisions to New Jersey’s 

Operating Permits Rule, codified at 

N.J.A.C. 7:27–22, as a revision to New 

Jersey’s Operating Permit Program. 

IV. Statutory and Executive Order 

Reviews 

Under Executive Order 12866 (58 FR 

51735, October 4, 1993), this proposed 

action is not a ‘‘significant regulatory 

action’’ and therefore is not subject to 

review by the Office of Management and 

Budget. For this reason, this action is 

also not subject to Executive Order 

13211, ‘‘Actions Concerning Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use’’ (66 FR 28355, May 

22, 2001). This proposed action merely 

proposes to approve state law as 

meeting Federal requirements and 

imposes no additional requirements 

beyond those imposed by state law. 

Accordingly, the Administrator certifies 

that this proposed rule will not have a 

significant economic impact on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.). Because this rule 

proposes to approve pre-existing 

requirements under state law and does 

not impose any additional enforceable 

duty beyond that required by state law, 

it does not contain any unfunded 

mandate or significantly or uniquely 

affect small governments, as described 

in the Unfunded Mandates Reform Act 

of 1995 (Pub. L. 104–4). 

This proposed rule also does not have 

tribal implications because it will not 

have a substantial direct effect on one or 

more Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes, 

as specified by Executive Order 13175 

(65 FR 67249, November 9, 2000). This 

action also does not have Federalism 

implications because it does 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, as specified in 

Executive Order 13132 (64 FR 43255, 

August 10, 1999). This action merely 

proposes to approve a state rule 

implementing a Federal standard, and 

does not alter the relationship or the 

distribution of power and 

responsibilities established in the Clean 

Air Act. This proposed rule also is not 

subject to Executive Order 13045 

‘‘Protection of Children from 

Environmental Health Risks and Safety 

Risks’’ (62 FR 19885, April 23, 1997), 

because it is not economically 

significant. 

In reviewing State Operating Permit 

Programs submitted pursuant to title V 

of the Clean Air Act, EPA will approve 

such regulations provided that they 

meet the requirements of the Clean Air 

Act and EPA’s regulations codified at 40 

CFR part 70. In this context, in the 

absence of a prior existing requirement 

for the State to use voluntary consensus 

standards (VCS), EPA has no authority 

to disapprove such regulations for 

failure to use VCS. It would, thus, be 

inconsistent with applicable law for 

EPA, when it reviews such regulations, 

to use VCS in place of a State regulation 

that otherwise satisfies the provisions of 

the Clean Air Act. Thus, the 

requirements of section 12(d) of the 

National Technology Transfer and 

Advancement Act of 1995 (15 U.S.C. 

272 note) do not apply. This proposed 

rule does not impose an information 

collection burden under the provisions 

of the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.). 

List of Subjects in 40 CFR Part 70 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Reporting and 

recordkeeping requirements. 

Authority: 42 U.S.C. 7401 et seq. 

Dated: March 6, 2007. 

Alan J. Steinberg, 

Regional Administrator, Region 2. 

[FR Doc. E7–5026 Filed 3–19–07; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

50 CFR Part 17 

RIN 1018–AU74 

Endangered and Threatened Wildlife 

and Plants; Designation of Critical 

Habitat for the Hine’s Emerald 

Dragonfly 

AGENCY: Fish and Wildlife Service, 

Interior. 

ACTION: Revised proposed rule; 

reopening of comment period and 

notice of availability of draft economic 

analysis, and amended Required 

Determinations. 

SUMMARY: We, the U.S. Fish and 

Wildlife Service (Service), announce the 

reopening of the public comment period 

and the availability of the draft 

economic analysis for the proposed 

designation of critical habitat for the 

endangered Hine’s emerald dragonfly 

(Somatochlora hineana) under the 

Endangered Species Act of 1973, as 

amended (Act). We are also revising our 

proposed rule, published on July 26, 

2006 (71 FR 42442), to include an 

additional proposed critical habitat unit 

in Door County, Wisconsin, and 

amending the Required Determinations 

for the proposal. The draft economic 

analysis forecasts that costs associated 

with conservation activities for the 

Hine’s emerald dragonfly would range 

from $16.8 million to $46.7 million in 

undiscounted dollars over the next 20 

years. In discounted terms, potential 

economic costs are estimated to be $13.3 

to $34.5 million (using a 3 percent 

discount rate) and $10.5 to $25.2 

million (using a 7 percent discount 

rate). In annualized terms, potential 

costs are expected to range from $0.8 to 

$2.3 million annually (annualized at 3 

percent) and $0.9 to $2.4 million 

annually (annualized at 7 percent). We 

are reopening the public comment 

period to allow all interested parties an 

opportunity to comment simultaneously 

on the proposed rule, our revision to the 

proposed rule, the associated draft 

economic analysis, and the amended 

Required Determinations. Comments 

previously submitted need not be 

resubmitted as they will be incorporated 

into the public record and fully 

considered in preparation of the final 

rule. 

DATES: We will accept public comments 

until April 3, 2007. 

ADDRESSES: If you wish to comment, 

you may submit your comments and 

information concerning this proposal, 

identified by ‘‘Attn: Hine’s Emerald 

Dragonfly Critical Habitat,’’ by any one 

of several methods: 

(1) Mail or hand-deliver to: John 

Rogner, Field Supervisor, U.S. Fish and 

Wildlife Service, Chicago Illinois 

Ecological Services Field Office, 1250 S. 

Grove, Suite 103, Barrington, IL 60010. 

(2) Send by electronic mail (e-mail) to 

hedch@fws.gov. Please see the Public 

Comments Solicited section below for 

file format and other information about 

electronic filing. 

(3) Fax your comments to: (847) 381–

2285. 

(4) Submit comments via the Federal 

eRulemaking portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 


erjones on PRODPC74 with PROPOSALS