This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

5501 

Vol. 76, No. 21 

Tuesday, February 1, 2011 

DEPARTMENT OF COMMERCE 

Economic Development Administration 

13 CFR Chapter III 

[Docket No.: 110119042–1041–01] 

RIN 0610–XA04 

Request for Comments: Review and 

Improvement of EDA’s Regulations 

AGENCY: Economic Development 

Administration, Department of 

Commerce. 

ACTION: Notice and request for 

comments. 

SUMMARY: The Economic Development 

Administration (EDA) is an agency 

within the U.S. Department of 

Commerce that leads the Federal 

economic development agenda by 

making strategic grants-based 

investments. EDA’s regulations provide 

the framework through which the 

agency administers its economic 

development assistance programs. EDA 

is beginning the process of updating the 

agency’s regulations and is committed 

to ensuring that public feedback helps 

shape the revised regulations. As part of 

the Administration’s commitment to 

open government and in response to 

Executive Order 13563 ‘‘Improving 

Regulation and Regulatory Review’’, 

EDA requests input from the public on 

any obstacles created by EDA’s current 

regulations and ways to improve them 

to help the agency better advance 

innovative economic development in 

the 21st century. EDA expects that this 

process will result in an updated 

rulemaking that reflects current 

economic development practice to 

advance an innovative economy. 

DATES: Comments must be received no 

later than 5 p.m. Eastern Time on March 

9, 2011. 

ADDRESSES: You may submit comments 

by any of the following methods. All 

comments must include ‘‘Comments on 

EDA’s regulations’’ and Docket No. 

110119042–1041–01. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Agency Web site: http:// 

www.eda.gov/. EDA has created an 

online feature for submitting comments. 

Follow the instructions at http:// 

www.eda.gov/. 

• E-mail: regulations@eda.doc.gov. 

Include ‘‘Comments on EDA’s 

regulations’’ and Docket No. 

110119042–1041–01 in the subject line 

of the message. 

• Fax: (202) 482–5671, Attention: 

Office of Chief Counsel. Please indicate 

‘‘Comments on EDA’s regulations’’ and 

Docket No. 110119042–1041–01 on the 

cover page. 

• Mail: Economic Development 

Administration, Office of Chief Counsel, 

Suite D–100, U.S. Department of 

Commerce, 1401 Constitution Avenue, 

NW., Washington, DC 20230. Please 

indicate ‘‘Comments on EDA’s 

regulations’’ and Docket No. 

110119042–1041–01 on the envelope. 

FOR FURTHER INFORMATION CONTACT: 

Jamie Lipsey, Attorney Advisor, U.S. 

Department of Commerce, Economic 

Development Administration, Office of 

Chief Counsel, 1401 Constitution 

Avenue, NW., Suite D–100, Washington, 

DC 20230; telephone: (202) 482–4687. 

SUPPLEMENTARY INFORMATION: 

Established under the Public Works and 

Economic Development Act of 1965, as 

amended (42 U.S.C. 3121 et seq.) 

(PWEDA), EDA’s mission is to lead the 

Federal economic development agenda 

by promoting competitiveness and 

preparing American regions for growth 

and success in the worldwide economy. 

EDA partners with stakeholders 

throughout the United States to foster 

job creation, collaboration, and 

innovation. EDA’s regulations, which 

are codified at 13 CFR chapter III, 

implement the agency’s six economic 

development assistance programs 

authorized under PWEDA, as well as the 

Trade Adjustment Assistance for Firms 

Program and Trade Adjustment 

Assistance for Communities Program, 

which are authorized under chapters 3, 

4, and 5 of title II of the Trade Act of 

1974, as amended (19 U.S.C. 2341 et 

seq.). 

In an opinion published in the Wall 

Street Journal on January 18, 2011, 

President Obama recognized that 

Federal regulations sometimes fail to 

strike the correct balance, placing 

unreasonable burdens on businesses 

that stifle innovation and have had a 

chilling effect on growth and jobs. Also 

on January 18, 2011, the President 

signed Executive Order 13563 

‘‘Improving Regulation and Regulatory 

Review,’’ which requires Federal 

agencies to review existing rules to 

remove outdated regulations that stifle 

job creation and make the U.S. economy 

less competitive. 

EDA is beginning the process of 

updating its regulations, which provide 

the framework through which the 

agency selects, awards, and administers 

its grant investments. Through this 

notice of inquiry (NOI), EDA requests 

input from the public on any obstacles 

created by EDA’s current regulations 

and ways to improve them to help the 

agency better advance innovative 

economic development in the 21st 

century. The agency is particularly 

interested in learning of any perceived 

impediments to contemporary economic 

development practices that are 

produced as a cause or consequence of 

a particular regulation. Although EDA 

welcomes comments on all of its 

regulations, the agency requests 

particular input on those regulations 

that impact the creation and growth of 

Regional Innovation Clusters (RICs). In 

addition, EDA has identified potential 

issues in the area of property 

management on which the agency 

requests comments, as discussed below. 

As part of the Administration’s 

commitment to open government, EDA 

is interested in broad public and 

stakeholder participation in this effort 

and strives to create a simplified 

regulatory system that balances the 

agency’s fiduciary and transparency 

responsibilities with good, common 

sense customer service to our 

stakeholders and the American people. 

1. Regional Innovation Clusters (RICs) 

EDA supports the development and 

growth of RICs as proven economic 

development tools through which 

American regions can create jobs and 

grow their economies. A RIC is an active 

network of similar, synergistic, or 

complementary organizations engaged 

in or with a particular industry sector, 

with active channels for business 

transactions, communications, and 

dialogue that share specialized 

infrastructure, labor markets, and 

services and that are located within a 

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5502 Federal Register / Vol. 76, No. 21 / Tuesday, February 1, 2011 / Proposed Rules 

defined geographic region. These active 

channels support the genesis of business 

ideas, innovations, and initiatives that 

create new companies and jobs. A RIC’s 

region may cross municipal, county, 

and other jurisdictional boundaries. A 

RIC often includes catalysts of 

innovation and drivers of regional 

economic growth, such as local 

universities, government research 

centers, and/or other research and 

development resources. In addition, 

participants in the RIC may have 

strategic partnerships with entities 

outside of the RIC’s geographic region. 

A successful RIC will leverage the 

region’s unique competitive strengths 

and find ways to nurture networks for 

business financing, business-to-business 

sales, education, and workforce 

development. These networks work in 

concert with local governments, venture 

capitalists, private banks, workforce 

investment boards, non-profit 

organizations, institutions of higher 

education (including community 

colleges), and other public and private 

agencies and institutions. 

EDA seeks information on whether its 

regulations appropriately facilitate the 

creation and promotion of RICs and 

comments on ways the regulations can 

better support RICs. EDA also seeks 

comments on any impediments the 

regulations present to its stakeholders as 

they work toward the creation and 

implementation of RICs. For example, 

should EDA define what it means by a 

RIC in its ‘‘Definitions’’ section at 13 

CFR 300.3 to provide stakeholders a 

clearer idea of what the agency seeks to 

encourage? If so, is the description 

above adequate as a definition? As 

another example, should EDA include a 

RIC analysis or strategy as part of the 

technical requirements of 

Comprehensive Economic Development 

Strategies as set out at 13 CFR 303.7(b)? 

2. Property Management 

EDA has become aware of a potential 

issue with its property management 

regulations, which are set out at 13 CFR 

part 314. As trustee of appropriated 

taxpayer dollars, EDA safeguards the 

public’s interest in grant assets, and the 

agency’s property management 

regulations provide the framework 

through which this is accomplished. 

EDA takes and retains a security interest 

(the Federal Interest) in property, 

including real and personal property, 

purchased or improved with grant 

funds. See 13 CFR 314.1 and 314.2. The 

Federal Interest helps ensure that 

project property is used for the 

economic development purposes for 

which the grant was awarded. In 

general, EDA’s regulations require that 

property purchased or improved with 

EDA assistance remain unencumbered 

and that the recipient hold title to the 

property for its estimated useful life. In 

some instances, these regulations have 

proved particularly challenging for 

public/private partnerships designed to 

advance a community’s economic 

development priorities. EDA seeks input 

on innovative ways that would allow 

recipients to structure a project (and 

property ownership, as appropriate) to 

accomplish relevant economic 

development goals, while continuing to 

safeguard the Federal Interest. For 

example, are there practical ways to 

secure the Federal Interest without 

requiring the recordation of a Federal 

lien or other encumbrance, or the 

recipient to hold title to project 

property? 

In addition, EDA seeks comments on 

the possibility of providing for 

additional flexibility with respect to the 

agency’s encumbrance and 

subordination requirements as set out at 

13 CFR 314.6 and 314.7. When EDA 

assistance is used to acquire or improve 

real property, the recipient must 

provide to EDA a locally recorded 

security interest in the property 

improved with grant funds. Such 

security interest can include a lien, 

mortgage, or another enumerated form 

of encumbrance. In the event that a 

project fails for any reason, EDA can 

recover the fair market value of its 

interest in the property and use those 

funds to make additional grants that 

will provide further opportunities for 

job creation. When EDA approves 

encumbrances on real property acquired 

or approved with program grant funds, 

EDA generally does not allow the 

Federal Interest to be subordinated to 

any other interest. However, given the 

realities of project development and real 

estate financing, EDA sometimes will 

allow (on a case-by-case basis) the 

Federal Interest to be subordinated 

provided that: EDA determines to its 

satisfaction that the recipient’s financial 

standing is strong; the recipient will not 

default on its obligations; and the 

project cannot happen without the 

subordination. See 13 CFR 314.6(b). 

The agency’s subordination 

requirements provide needed flexibility 

when long-term financing is available 

and when the level of risk to the Federal 

Interest can be assessed at the outset. 

However, it has come to EDA’s attention 

that the requirements may not provide 

the necessary flexibility when shortterm financing is involved. Some 

financing tools available to recipients 

may be restricted to a relatively short 

period of time. For example, the credit 

allowance period under the New 

Markets Tax Credit (NMTC) Program is 

seven years (see IRC 45D(a)(3)). Projects 

involving NMTC investments often 

refinance at the conclusion of the credit 

allowance period (see the NMTC 

Program FAQs for more information on 

the program, which are available on the 

U.S. Department of the Treasury’s Web 

site at http://www.cdfifund.gov/docs/

nmtc/2009/NMTC%20Compliance%20

Monitoring%20FAQ.pdf). Also, in some 

cases, short-term financing is the only 

type of financing that a recipient can 

realistically obtain. In such 

circumstances, other project lenders 

often want EDA to agree at the time 

project financing is negotiated to 

subordinate its interest in the future 

after the short-term loan matures so that 

follow-on financing can be put into 

place. Because future market conditions 

are uncertain, EDA cannot make the 

findings under 13 CFR 314.6(b) needed 

to subordinate the Federal Interest. A 

current agreement to subordinate in the 

future puts the Federal Interest at 

increased risk; are there mechanisms 

available to make that risk acceptable if 

it allows promising economic 

development projects to go forward? 

Would it be useful for EDA’s 

regulations to specifically provide for 

situations where short-term project 

financing is the only tool available? 

Specifically, should EDA agree to 

subordinate the Federal Interest in the 

future when future market conditions, 

the strength of the recipient, and the 

success of the project are largely 

unknown? In what situations should 

this tool be exercised? What award 

conditions should EDA require in 

connection with such arrangements? In 

some circumstances, EDA is able to 

hedge against risk by, for example, 

requiring a non-profit applicant to add 

a city or other local government body as 

a co-applicant. This avenue is not 

available in all cases. Given this, are 

there alternative mechanisms that can 

protect the Government’s interest in 

case the project fails so that EDA can 

recover the Federal Interest to make new 

grants? 

Although the examples above center 

on how EDA’s regulations affect RIC 

development and adjustments to EDA’s 

property management requirements, as 

noted above, EDA seeks public 

comments on any aspect of the 

regulations. Comments that identify 

potential regulatory impediments to 

economic development and make 

corresponding recommendations, as 

well as the commenter’s experiences 

complying with the regulation at issue, 

will be instructive. 

Comments should be submitted to 

EDA as described in the ADDRESSES

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Federal Register / Vol. 76, No. 21 / Tuesday, February 1, 2011 / Proposed Rules 5503 

section of this notice. EDA strongly 

encourages the use of the online feature 

on the agency’s Web site to share 

comments and suggestions on 

improving the agency’s regulations. The 

feature is easily accessible on EDA’s 

Web site and offers participants an 

opportunity to view the comments of 

others. As noted above, the online 

commenting feature can be accessed at 

http://www.eda.gov/. EDA will consider 

all comments submitted in response to 

this NOI that are received by 5 p.m. 

Eastern Time on March 14, 2011, as 

referenced under DATES. EDA will not 

accept public comments accompanied 

by a request that a part or all of the 

material be treated confidentially for 

any reason; EDA will not consider such 

comments and will return such 

comments and materials to the 

commenter. All public comments in 

response to this NOI must be in writing 

(including fax or e-mail) and will be a 

matter of public record. All comments 

submitted will be available for public 

inspection and copying at http:// 

www.regulations.gov. 

Dated: January 25, 2011. 

Brian P. McGowan, 

Deputy Assistant Secretary for Economic 

Development and Chief Operating Officer. 

[FR Doc. 2011–1937 Filed 1–31–11; 8:45 am] 

BILLING CODE 3510–24–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2011–0033; Directorate 

Identifier 2010–NM–019–AD] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Model 777–200 Series 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for certain 

Model 777–200 series airplanes. This 

proposed AD would require installing a 

new circuit breaker, relays, and wiring 

to allow the flightcrew to turn off 

electrical power to the in-flight 

entertainment (IFE) systems and other 

non-essential electrical systems through 

a switch in the flight compartment, and 

doing other specified actions. The 

actions include replacing the cabin area 

control panels; changing the wiring; 

modifying the purser station or the 

A–4 galley, as applicable; installing new 

cabin system management unit, cabin 

area control panel, overhead electronics 

unit, and zone management units 

operational software, as applicable; and 

making a change to the cabin services 

system (CSS) configuration database and 

installing the new database in the CSS 

components. This proposed AD would 

also require changing the wiring at the 

cabin management system in the purser 

station. This proposed AD results from 

an IFE systems review. We are 

proposing this AD to ensure that the 

flightcrew is able to turn off electrical 

power to the IFE system and other nonessential electrical systems through a 

switch in the flight compartment in the 

event of smoke or flames. The 

flightcrew’s inability to turn off 

electrical power to the IFE system and 

other non-essential electrical systems in 

the event of smoke or flames could 

result in the inability to control smoke 

or flames in the airplane flight deck or 

passenger cabin during a non-normal or 

emergency situation. 

DATES: We must receive comments on 

this proposed AD by March 18, 2011. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

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

through Friday, except Federal holidays. 

For service information identified in 

this proposed 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. You 

may review copies of the referenced 

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. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 

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

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone 800–647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: Joe 

Salameh, Aerospace Engineer, Systems 

and Equipment Branch, ANM–130S, 

FAA, Seattle Aircraft Certification 

Office, 1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

425–917–6454; fax 425–917–6590. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2011–0033; Directorate Identifier 

2010–NM–019–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

In response to numerous reports of 

smoke or flames in the passenger cabin 

of various models of transport category 

airplanes, we conducted a 

comprehensive in-flight entertainment 

(IFE) systems review. Earlier 

investigation of the reports had revealed 

that the source of the smoke and flames 

was from cabin IFE system components, 

including electronic seat boxes mounted 

under passenger seats, IFE wiring, IFE 

monitors, cabin lighting, wall outlets, 

and other non-essential cabin electrical 

systems. 

The systems review disclosed that in 

order to minimize the risk of smoke or 

flames in the passenger cabin, a switch 

is needed in the flight compartment to 

enable the flightcrew to turn off 

electrical power to the IFE system and 

other non-essential electrical systems in 

the event of smoke or flames. The 

flightcrew’s inability to turn off power 

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