Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules 51389

Differences Between the Proposal and

the Related Service Bulletins

The proposed rule would differ from

Aerospatiale Service Bulletins ATR42–

57–0044, dated May 30, 1995, and

Revision 1, dated June 28, 1995, in that

it would not permit further flight

following removal of corrosion. The

FAA has determined that, due to the

safety implications and consequences

associated with the removal of small

amounts of metal from the load-carrying

structural elements of the rear spars of

the wings (a normal and unavoidable

result of the process of removing

corrosion), the subject rear spars that are

found to be corroded must be repaired

prior to further flight. The repair would

be required to be accomplished in

accordance with a method approved by

the FAA.

Cost Impact

The FAA estimates that 16 airplanes

of U.S. registry would be affected by this

proposed AD, that it would take

approximately 24 work hours per

airplane to accomplish the proposed

actions, and that the average labor rate

is $60 per work hour. Based on these

figures, the total cost impact of the

proposed AD on U.S. operators is

estimated to be $23,040, or $1,440 per

airplane.

The total cost impact figure discussed

above is based on assumptions that no

operator has yet accomplished any of

the proposed requirements of this AD

action, and that no operator would

accomplish those actions in the future if

this AD were not adopted.

Regulatory Impact

The regulations proposed herein

would 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. Therefore,

in accordance with Executive Order

12612, it is determined that this

proposal would not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

For the reasons discussed above, I

certify that this proposed regulation: (1)

Is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, 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. A copy of the draft

regulatory evaluation prepared for this

action is contained in the rules docket.

A copy of it may be obtained by

contacting the rules docket at the

location provided under the caption

ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend part

39 of the Federal Aviation Regulations

(14 CFR part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

Aerospatiale: Docket 95–NM–140–AD.

Applicability: Model ATR42–200, –300,

and –320 series airplanes, as listed in

Aerospatiale Service Bulletin ATR42–57–

0044, dated May 30, 1995, or Revision 1,

dated June 28, 1995; certificated in any

category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

otherwise modified, altered, or repaired in

the area subject to the requirements of this

AD. For airplanes that have been modified,

altered, or repaired so that the performance

of the requirements of this AD is affected, the

owner/operator must use the authority

provided in paragraph (b) of this AD to

request approval from the FAA. This

approval may address either no action, if the

current configuration eliminates the unsafe

condition; or different actions necessary to

address the unsafe condition described in

this AD. Such a request should include an

assessment of the effect of the changed

configuration on the unsafe condition

addressed by this AD. In no case does the

presence of any modification, alteration, or

repair remove any airplane from the

applicability of this AD.

Compliance: Required as indicated, unless

accomplished previously.

To detect and correct corrosion on the rear

spars of the wings, which could result in

reduced structural integrity of the wing,

accomplish the following:

(a) Within 60 days after the effective date

of this AD, perform a one-time detailed

visual inspection to detect corrosion of the

rear spars of the wings, in accordance with

Aerospatiale Service Bulletin ATR42–57–

0044, dated May 30, 1995, or Revision 1,

dated June 28, 1995.

(1) If no corrosion is detected, prior to

further flight, apply a protective compound

to the areas specified in the service bulletin,

in accordance with the service bulletin.

(2) If any corrosion is detected, prior to

further flight, repair it in a method approved

by the Manager, Standardization Branch,

ANM–113, FAA, Transport Airplane

Directorate.

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,

Standardization Branch, ANM–113, FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Standardization

Branch, ANM–113.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Standardization Branch,

ANM–113.

Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Note 3: The subject of this AD is addressed

in French airworthiness directive (CN) 95–

127–063(B), dated August 2, 1995.

Issued in Renton, Washington, on

September 25, 1997.

Darrell M. Pederson,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 97–25977 Filed 9–30–97; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 700

[Docket No. 970827205–7205–01]

RIN 0694–AA02

Defense Priorities and Allocations

System

AGENCY: Bureau of Export

Administration, Commerce.

ACTION: Notice of proposed rulemaking

and request for comments.

SUMMARY: The Department of Commerce

proposes to revise the Defense Priorities

and Allocations System (DPAS)

regulation by updating, modifying or

clarifying a number of its provisions.

The DPAS implements the priorities

and allocations authority of Title I of the

Defense Production Act of 1950, as

amended, and the priorities authority of

Section 18 of the Selective Service Act

of 1948 and related authorities, as these

authorities pertain to industrial

resources.
51390 Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules

Provisions to be modified include the

time period within which a supplier

must accept or reject a rated order, the

order of precedence to be given to

conflicting rated orders which have

equal priority status, and the combining

of defense rated requirements with

commercial (unrated) requirements.

The Department also proposes to

remove all controlled materials

provisions and references from the

DPAS because the controlled materials

program (essentially an emergency

preparedness measure) is obsolete and

has been deactivated.

These revisions, including a number

of other changes to update and clarify

the text, are intended to improve the

administration of the DPAS and make it

more effective and efficient in the postCold War era.

The Department will consider public

comment on these proposed revisions

and on any other provision that may be

hindering effective and efficient DPAS

administration or implementation.

DATES: Comments must be received no

later than October 31, 1997.

ADDRESSES: Address written comments

(six copies) to Richard V. Meyers, DPAS

Program Manager, Office of Strategic

Industries and Economic Security,

Room 3876, U.S. Department of

Commerce, Washington, D.C. 20230.

The public record of this proposed rule

will be available at the Bureau of Export

Administration Freedom of Information

Records Inspection Facility, Room 4525,

U.S. Department of Commerce, 14th

Street and Pennsylvania Avenue, N.W.,

Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT:

Richard V. Meyers, DPAS Program

Manager, Office of Strategic Industries

and Economic Security, Room 3876,

U.S. Department of Commerce, 14th

Street and Pennsylvania Avenue, N.W.,

Washington, D.C. 20230; telephone

(202) 482–3634, FAX (202) 482–5650,

and E-Mail rmeyers@bxa.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

The current Defense Priorities and

Allocations System (DPAS) regulation

(15 CFR part 700; formerly 15 CFR part

350) was published by the Department

of Commerce as a final rule on July 30,

1984 (49 FR 30412), superseding the

regulations of the Defense Materials

System and Defense Priorities System.

The DPAS regulation implements the

priorities and allocations authority of

Title I of the Defense Production Act of

1950, as amended (50 U.S.C. app. 2061,

et seq.), and the priorities authority of

Section 18 of the Selective Service Act

of 1948 (50 U.S.C. app. 468), 10 U.S.C.

2538 and 2539, and 50 U.S.C. 82, as

these authorities pertain to industrial

resources.

The Department has received a

number of oral and written comments

suggesting the need to modify or clarify

several provisions of the DPAS which

relate to: (1) The time period within

which a supplier must accept or reject

a rated order [section 700.13(d)(1)]; (2)

the order of precedence to be given by

contractors and suppliers to conflicting

rated orders of equal priority status

(section 700.14); and (3) the combining

by a contractor of defense rated

requirements with commercial (unrated)

requirements on one purchase order to

a supplier [section 700.17(d)].

Accordingly, for the reasons discussed

in the PROPOSED REVISIONS section

below, the Department proposes to

revise these DPAS rules.

The Department also proposes to

remove the controlled materials

provisions from the DPAS (sections

700.30–700.31) and delete all other

references to the program from

throughout the regulation for the

following reasons.

During World War II and the Korean

War, the production and distribution of

certain critical materials called

‘‘controlled materials’’—steel, copper,

and aluminum—were managed under

Controlled Materials Plans. From 1953

to 1988, these materials, with nickel

alloys added in 1958, continued to be

subject to government allocations

regulations.

A 1987 Department of Commerce

study of the controlled materials

program found that the program had

little relevance to current defense

requirements for the controlled

materials or to the current ability of

industry to supply the controlled

materials to meet these requirements.

The study recommended that the

controlled materials procedures be

deactivated. An interagency committee,

comprised of Commerce and three of the

DPAS Delegate Agencies (Federal

Emergency Management Agency and the

Departments of Defense and Energy),

concurred with this recommendation.

Action was subsequently taken by these

agencies to deactivate the program,

including action by Commerce to

discontinue the information collection

burden imposed upon controlled

materials producers, distributors, and

users to supply information about

controlled materials requirements and

shipments. This information was used

to support administration of the

controlled materials program.

Finally, the Department proposes to

make various jurisdictional, technical,

administrative, and miscellaneous

revisions to a number of DPAS

provisions to address changes to

delegated authority, to incorporate the

delegation of additional authority, to

update and clarify the text, and to

improve generally the administration,

effectiveness, and efficiency of the

DPAS in support of our nation’s postCold War defense requirements and its

ability to respond fully to a national

security or major disaster emergency

situation.

Proposed Revisions

Proposed revisions to the DPAS

regulation are described in the following

section-by-section analysis.

1. Customer Notification of Acceptance

or Rejection of Rated Orders

Section 700.13(d) (Customer

notification requirements) of the current

DPAS requires a supplier to accept or

reject a rated order in writing within ten

(10) working days after receipt of a DO

rated order and within five (5) working

days after receipt of a DX rated order.

Subcontractors and suppliers have

complained that it is very difficult to

comply with this requirement due to

production scheduling complexities and

other administrative factors.

The proposed rule would revise

subparagraph (1) of section 700.13(d) by

extending the time within which a

person must accept or reject a rated

order by five (5) working days.

Accordingly, a person must accept or

reject a rated order within fifteen (15)

working days after receipt of a DO rated

order, and within ten (10) working days

after receipt of a DX rated order. The

Department believes that this change

will not significantly impact upon the

timely delivery of items against these

orders.

The revised subparagraph would also

specifically reference electronic data

interchange of the acceptance or

rejection of rated orders. Electronic

placement of rated orders is acceptable

provided that the transmission complies

in substance with section 700.12

(Elements of a rated order). This section

would also be revised to reference the

electronic placement of rated orders.

2. Precedence of Rated Orders of Equal

Priority Status

A number of companies have

requested clarification of the preference

to be given to rated orders which have

equal priority status (DX or DO) when

production scheduling conflicts or other

problems arise following acceptance of

the rated orders.

The proposed rule would revise

paragraph (c) of section 700.14

(Preferential scheduling) of the current
Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules 51391

DPAS to provide that if a person finds

that production, delivery, or

performance against any accepted rated

orders conflicts with production,

delivery, or performance against any

other accepted rated orders of equal

priority status, preference shall be given

to the conflicting rated orders in the

sequence in which they were received

(not to the required delivery dates).

However, if the conflicting rated orders

were received on the same day, the

person shall give preference to those

orders which have the earliest delivery

dates. If under these rules, the

production, delivery, or performance

conflicts cannot be resolved, or if the

customer objects to the rescheduling of

the customer’s rated order, the proposed

rule provides that special priorities

assistance should be requested promptly

under sections 700.50–700.54 of the

DPAS.

Some of the confusion over

preferential scheduling appears to have

been caused by including paragraph (c)

in section 700.14 (Preferential

scheduling) of the current DPAS. This

paragraph covers acceptance or rejection

of rated orders of equal priority status

received on the same day. The proposed

rule would incorporate this paragraph

into section 700.13 (Acceptance and

rejection of rated orders).

3. Combining Defense Rated

Requirements With Commercial

(Unrated) Requirements

Paragraph (d) of section 700.17 (Use

of rated orders) of the current DPAS

permits a contractor to combine rated

and unrated order quantities on a

purchase order to a supplier provided

that the rated quantities are clearly and

separately identified. These quantities

must also be contained in a separate

rated order which conforms to the

requirements of section 700.12

(Elements of a rated order). A special

statement and the physical attachment

of the separate rated order to the

combined order are also required. A

number of companies have complained

that the requirement for a separate rated

order is expensive to implement, an

administrative burden, and

incompatible with their automated

procurement systems.

The proposed rule would eliminate

the requirement for a separate rated

order but would retain the requirement

for clear and separate identification of

rated order quantities. It also would

require a special statement on the

combined purchase order to notify the

supplier that the order contains rated

quantities certified for national defense

use and that the provisions of the DPAS

apply only to the rated quantities. This

change should contribute to contractor

efficiency and cost savings while

minimizing the possibility of supplier

confusion. The growing

commercialization of defense

procurement and the development of

dual-use products and technology

further underscores the need for this

change.

4. National Security Emergency

Preparedness and Removal of the

Controlled Materials Provisions

The proposed rule would remove

from the DPAS all provisions and

references pertaining to the controlled

materials, including the controlled

materials information in section 700.4 of

Subpart B (Overview), the definitions

relating to controlled materials in

section 700.8, the special rules for

controlled materials in Subpart F

(sections 700.30–700.31), and the

authorized programs for controlled

materials (C8 and H2–H4) listed in

Schedule 1 to Part 700. Also removed

would be Schedule II to Part 700, which

lists the controlled materials, Schedule

III to Part 700, which defines the

controlled materials, and Schedules IV

and V to Part 700, which establish the

set-aside base and percentages for

copper and nickel alloys producers.

The heading of Subpart F would be

renamed ‘‘National Security Emergency

Preparedness and Critical Items.’’, and

the heading of section 700.30 would be

retitled ‘‘Priorities and Allocations in a

National Security Emergency.’’ The text

of section 700.30 would be revised to

provide a statement as to how the DPAS

may be expanded in a national security

emergency to ensure rapid industrial

response and the timely availability of

critical industrial items and facilities to

meet the urgent defense or major

disaster emergency requirements of

approved programs.

Included is a discussion of emergency

official actions, the allocation of critical

and scarce items and facilities to meet

emergency requirements, and the

delegation of authority under the DPAS

to the Regional Emergency Coordinators

in the ten Standard Federal Region

Council cities in the event that

communications with Commerce

headquarters in Washington, D.C. is

severed as a result of the emergency.

Section 700.4 in Subpart B (Overview)

would also be revised to summarize the

revised Subpart F, with the section

heading retitled ‘‘Priorities and

Allocations in a National Security

Emergency.’’

In Subpart G, section 700.40 (General

provisions) would be removed and

section 700.41 (Metalworking machines)

would be moved into Subpart F and

redesignated as section 700.31. Subpart

G would be ‘‘Reserved’’ for future use.

The removal of the controlled

materials provisions would necessitate

amendment of DPAS Delegation 1 to the

Secretary of Defense (Appendix I to Part

700) and the Memorandum of

Understanding on Priorities and

Allocations Support Between the U.S.

Department of Commerce and the

Canadian Public Works and

Government Services Canada (formerly

Department of Supply and Services)

(Appendix IV to Part 700) to delete

references to the controlled materials

program within these documents.

5. New Approved Programs

The proposed rule would revise

Schedule 1 to the current DPAS to

retitle it ‘‘Approved Programs and

Delegate Agencies’’, to include two new

programs, ‘‘Special Projects’’ and ‘‘Food

Resources (combat rations)’’, and to

change the ‘‘N1’’ Federal Emergency

Management Agency program name to

‘‘Emergency Preparedness Activities’’.

The ‘‘Special Projects’’ program

would be assigned to the Department of

Commerce as Delegate Agency and

identified by the Program Identification

Symbol ‘‘H8’’. It would provide the

Department with greater administrative

flexibility in authorizing the use of

priority ratings, as needed on a case-bycase basis by non-Delegate Agencies to

support defense related procurement,

where use of a current approved

program identification would not be

appropriate. Such priority rating

authority would be granted only after

establishing the appropriate national

defense or civil emergency preparedness

nexus for the project in consultation

with the Department of Defense (DOD),

Department of Energy, or Federal

Emergency Management Agency, as

provided under section 202 of E.O.

12919.

The ‘‘Food Resources (combat

rations)’’ program would be assigned to

DOD as Delegate Agency and identified

by the Program Identification Symbol

‘‘C1’’. This would enable DOD to place

rated orders under the DPAS for food

resources to meet troop support

requirements for combat rations under

the authority delegated to DOD by

Commerce in DPAS Delegation 1 (see

Appendix I to Part 700). This program

was established by agreement between

the Departments of Commerce and

Agriculture, dated January 28, 1991, and

approved by FEMA on February 1, 1991

(see Attachment A to DPAS Delegation

1). It is consistent with the

Memorandum of Understanding

between the Departments of Agriculture

and Commerce Concerning Priorities
51392 Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules

and Allocations Jurisdiction and

Responsibilities for Foods Which Have

Industrial Uses and the Domestic

Distribution of Farm Equipment (see

Appendix II to Part 700).

The ‘‘N1’’ program name change

would reflect the expansion of Defense

Production Act (Title I) priorities and

allocations authority to cover emergency

preparedness activities as provided

under Title VI of the Robert T. Stafford

Disaster Relief and Emergency

Assistance Act, as amended (Stafford

Act) (42 U.S.C. 5195, et seq.).

6. Other Revisions

Because of recent amendments to the

Defense Production Act, the Stafford

Act, and the issuance and subsequent

amendment of Executive Order 12919

(revision of Executive Order 10480),

technical revisions to several sections of

the DPAS, including section

700.18(b)(1) (Jurisdictional limitations),

are required. The proposed rule sets

forth these changes.

Also, on January 8, 1991, priorities

authority with respect to industrial

resources was delegated to the

Department of Commerce under the

Selective Service Act of 1948 (50 U.S.C.

app. 468), 10 U.S.C. 2538 and 2539, and

50 U.S.C. 82 by Executive Order 12742

(56 FR 1079). The proposed rule would

incorporate a reference to these

authorities where appropriate,

throughout the regulation.

Finally, the proposed rule would

make various other technical,

administrative, and miscellaneous

changes to the current DPAS rules.

Among these revisions are

improvements to the clarity of the text

in section 700.2(b) (Introduction) and

subparagraph (2) of section 700.13(d)

(Customer notification requirements),

and increasing the minimum rated order

amount from $5000 to $100,000 in

paragraph (f) of section 700.17 (Use of

rated orders) to conform with the

current simplified Federal Acquisition

Regulation small order acquisition

threshold. Revision of section 700.21

(Application for priority rating

authority) in Subpart E (Industrial

Priorities for Energy Programs), section

700.72 (Compulsory process), section

700.80 (Adjustments or exceptions),

section 700.81 (Appeals), and section

700.93 (Communications), is necessary

to reflect office name, address,

telephone number, and Departmental

organization changes.

7. Appendices to Part 700

All DPAS Appendices (Appendix I—

DPAS Delegations of Authority to the

Departments of Defense and Energy, the

General Services Administration, and

the Federal Emergency Management

Agency; Appendix II—Interagency

Memoranda of Understanding with the

Departments of Agriculture, Energy, and

the Interior; Appendix III—Form ITA–

999—Request for Special Priorities

Assistance; and Appendix IV—

Memorandum of Understanding on

Priorities and Allocations Support

Between the U.S. Department of

Commerce and the Canadian

Department of Supply and Services)

require updating and revision to address

various substantive and technical

changes, including changes in statutory

and delegated authority and removal of

obsolete provisions. Of special note is

an expanded restriction in each of the

DPAS Delegations of Authority on the

use of rated orders by the Delegate

Agencies to support procurement of any

items which are commonly available in

commercial markets for general

consumption, do not require major

modification when purchased for

approved program use, and are readily

available in sufficient quantity so as to

cause no delay in meeting approved

program requirements.

A new Appendix V (DPAS Emergency

Documents) will be added, containing,

for information purposes only, DPAS

Emergency Delegation 1. This document

will delegate authority to the Regional

Emergency Coodinators in the ten

Federal Regional Council cities to

administer the DPAS if a catastrophic

national security emergency situation

severs communications with

Department of Commerce headquarters

in Washington, D.C.

Because the documents in these

Appendices are of limited public

interest, they will not be published in

draft for public comment. They will,

however, be reviewed by all involved

departments and agencies and copies of

the executed originals will be published

with the Notice of Final Rulemaking.

Public Comment Requested

Public comment on the sufficiency

and reasonableness of these proposed

revisions is solicited. In addition,

comments are solicited concerning any

other DPAS provision. The

Department’s objective is to ensure that

the DPAS is effective, efficient, easy to

understand and use, and properly

designed not only to ensure the timely

delivery of industrial resources in

support of current national defense

programs with minimal disruption to

normal commercial activities, but also

to support future emergency

requirements.

Section 709 of the Defense Production

Act exempts the promulgation of rules

and regulations from the rulemaking

procedures of the Administrative

Procedure Act (5 U.S.C. 551–559).

However, the Defense Production Act

does require Federal Register

publication of these proposed revisions

and opportunity for public comment,

consistent with the requirements 5

U.S.C. 553(b). Therefore, all persons

who desire to comment are encouraged

to do so at the earliest possible time to

receive the fullest consideration of their

views. Only those comments received

on or before October 31, 1997 will be

considered.

In the interest of accuracy and

completeness, the Department requires

written comments (six copies) which

should be sent to the address indicated

in the address section above. Oral

comments should be directed to Richard

V. Meyers, DPAS Program Manager [tel.:

(202) 482–3634], and must be followed

by written memorandum to Mr. Meyers.

All such written comments and

memoranda will be placed in the public

rulemaking docket and will be available

for public review and copying.

However, communications from

agencies of the U.S. Government or

foreign governments will not be made

available for public inspection. Written

comments accompanied by a request

that part or all of the material contained

be treated confidentially will not be

considered in developing the final rule.

Such comments and materials will be

returned to the submitter.

The public rulemaking docket

concerning this regulation will be

maintained in the Bureau of Export

Administration Freedom of Information

Records Inspection Facility, at the

address indicated in the address section

above. Records in this facility may be

inspected and copied in accordance

with regulations published in 15 CFR

part 4. Information pertaining to the

inspection and copying of records may

be obtained from Ms. Margaret Cornejo,

Freedom of Information Officer, at the

Records Inspection Facility, or by

calling (202) 482–5653.

Rulemaking Requirements

The Department has made certain

determinations with respect to the

following rulemaking requirements:

1. Classification Under E.O. 12866

This proposed revision of the current

DPAS regulation (15 CFR part 700) has

been determined to be ‘‘not significant’’

for the purpose of Executive Order

12866.

2. Regulatory Flexibility Act

The Assistant General Counsel for

Legislation and Regulation certified to

the Chief Counsel for Advocacy, Small
Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules 51393

Business Administration, that this

proposed rule to revise the DPAS, if

adopted, will not have a significant

economic impact on a substantial

number of small entities. These

revisions would merely update, modify,

or clarify a number of provisions to

make the current DPAS more effective

and efficient in the post Cold War era.

Many of the proposed changes are being

made in response to comments and

recommendations received from the

business community, thus ensuring that

the updated DPAS will conform to

current business practices and enable all

business entities subject to its

requirements to increase the efficiency

of their operations and realize certain

cost savings. In addition, some DPAS

provisions must be revised to conform

the regulation to recent statutory and

organizational changes while other

provisions must be deleted because they

are obsolete.

Because of the self-administered

nature of the DPAS, there is no way to

accurately estimate the number of

business entities throughout the U.S.

industrial base to whom the DPAS is

applicable. However, it has been

roughly estimated that there are at least

18,000 business entities during any one

year that on at least one or more

occasions must respond to its

requirements. It is also estimated that

given the nature of defense production,

relatively few of these entities are small

entities.

The DPAS regulation has been in

effect since 1984 and is the successor to

priorities and allocations regulations

that were first promulgated in the mid1950s. Thus, most business entities

engaged in defense production under

the DPAS, including small entities, can

and do respond to applicable DPAS

requirements in the ordinary course of

their business with very little, if any,

economic impact. The DPAS revisions,

in and of themselves, would impose no

economic impact on any business

entity, including small entities, and if

adopted, will further reduce whatever

minimal economic impact is associated

with DPAS compliance.

3. Paperwork Reduction Act

The information collection

requirements imposed by the DPAS

regulation have been submitted to the

Office of Management and Budget

(OMB) for review under the provisions

of Section 3507 of the Paperwork

Reduction Act of 1980 (44 U.S.C. 3501,

et seq.) (OMB Control Number 0694–

0053). Notwithstanding any other

provision of law, no person is required

to respond to nor shall a person be

subject to a penalty for failure to comply

with these information collection

requirements unless the information

collection displays a currently valid

OMB Control Number.

The collection of information

requirements in the DPAS apply to all

persons who receive priority rated

orders under the DPAS. These

requirements are necessary to support

proper administration of the DPAS and

ensure its effectiveness and efficiency.

The total annual public burden per

respondent for this collection of

information is estimated at 14,476.5

hours. This estimate includes (a) 11,667

total extra record keeping hours to

create a record of the receipt of a

priority rated order (700,000 priority

rated orders annually × 1 minute per

order); (b) 972 total hours to provide

notice of acceptance of a priority rated

order (699,650 priority rated orders

accepted annually × 5 seconds per

order); (c) 87.5 total hours to provide

notice of rejection of a priority rated

order (350 total priority rated orders

rejected annually × 15 minutes per

order); and (d) 1,750 total hours to

provide notice of delayed delivery

against a priority rated order (7000 total

priority rated orders annually against

which delivery will be delayed × 15

minutes per order).

Comments are requested concerning:

(a) Whether the proposed collection of

information is necessary for the proper

performance of agency functions, which

includes proper administration of the

DPAS and ensuring its effectiveness and

efficiency; (b) the accuracy of the public

burden estimate; (c) ways to enhance

the quality, utility, and clarity of the

information collected; and (d) ways to

further minimize the public information

collection burden, including the use of

automated collection techniques or

other forms of information technology.

Written comments should be sent

within 30 days of publication of this

Notice in the Federal Register to Ms.

Victoria Baecher-Wassmer, OMB Desk

Officer, Room 10202, New Executive

Office Building, Office of Management

and Budget, Washington, D.C. 20230;

and to Mr. Stephen Baker, BXA

Information Collection Officer, Room

6877, U.S. Department of Commerce,

Washington, D.C. 20230.

4. Executive Order 12612

This proposed rule does not contain

policies with Federalism implications

sufficient to warrant preparation of a

Federalism assessment under E.O.

12612.

List of Subjects in 15 CFR Part 700

Administrative practice and

procedure, Business and industry,

Government contracts, National defense,

Reporting and recordkeeping

requirements, Strategic and critical

materials.

For the reasons stated in the

preamble, part 700 of Subchapter A,

National Security Industrial Base

Regulations (15 CFR part 700), is

proposed to be amended as follows:

1. The authority citation for 15 CFR

part 700 is revised to read as follows:

Authority: Titles I and VII of the Defense

Production Act of 1950, as amended (50

U.S.C. app. 2061, et seq.), Title VI of the

Robert T. Stafford Disaster Relief and

Emergency Assistance Act (42 U.S.C. 5195, et

seq.), and Executive Order 12919 of June 3,

1994 (59 FR 29525), as amended; Section 18

of the Selective Service Act of 1948 (50

U.S.C. app. 468), 10 U.S.C. 2538 and 2539,

50 U.S.C. 82, and Executive Order 12742 of

January 8, 1991 (56 FR 1079), as amended;

and Executive Order 12656 of November 18,

1988 (53 FR 226), as amended.

PART 700—[AMENDED]

2. Section 700.1 is amended:

a. By revising the phrase ‘‘materials

and facilities’’ to read ‘‘materials,

services, and facilities’’, and revising the

phrase ‘‘materials and equipment’’ to

read ‘‘materials, equipment, and

services’’, in paragraph (a);

b. By revising paragraph (b);

c. By redesignating paragraph (c) as

paragraph (e); and

d. By adding new paragraphs (c) and

(d); as follows:

§ 700.1 Purpose of this regulation.1

* * * * *

(b) Section 18 of the Selective Service

Act of 1948 (50 U.S.C. app. 468)

(Selective Service Act) authorizes the

President to place an order with a

supplier for any articles or materials

required for the exclusive use of the

U.S. armed forces whenever the

President determines that in the interest

of national security, prompt delivery of

the articles and materials is required.

The supplier must give precedence to

the order so as to deliver the articles or

materials in a required time period. 10

U.S.C. 2538 and 2539, and 50 U.S.C. 82,

provide similar authority specifically for

Department of Defense procurement, but

only in time of war or when war is

imminent.

(c) Section 602(b) of the Robert T.

Stafford Disaster Relief and Emergency

Assistance Act (42 U.S.C. 5195a(b))

provides that the terms ‘‘national

defense’’ and ‘‘defense’’ as used in the

Defense Production Act includes

‘‘emergency preparedness activities’’

conducted pursuant to Title VI of the

Stafford Act. The definition of ‘‘national

defense’’ in Section 702(13) of the
51394 Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules

Defense Production Act provides that

this term includes ‘‘emergency

preparedness activities’’ conducted

pursuant to Title VI of the Stafford Act.

(d) The Defense Priorities and

Allocations System (DPAS) regulation

implements the priorities and

allocations authority of the Defense

Production Act and as this authority

pertains to Title VI of the Stafford Act,

and the priorities authority of the

Selective Service Act and related

statutes, all with respect to industrial

resources. The DPAS ensures the timely

availability of industrial resources for

approved programs and provides a

regulatory framework to support rapid

industrial response to a national

security or major disaster emergency.

* * * * *

3. Section 700.2 is amended by

revising paragraphs (a) and (b) to read

as follows:

§ 700.2 Introduction.

(a) Certain national defense and

energy programs (including emergency

preparedness activities) are approved

for priorities and allocations support.

For example, military aircraft

production, ammunition, and certain

programs which maximize domestic

energy supplies are ‘‘approved

programs.’’ A complete list of currently

approved programs is provided at

Schedule 1 to this regulation.

(b) The Department of Commerce

administers the DPAS to ensure the

timely delivery of industrial items to

meet approved program requirements.

* * * * *

§ 700.3 [Amended]

4. Section 700.3(a) is amended by

revising the term ‘‘authorized program’’

to read ‘‘approved program’’.

5. Section 700.4 is amended:

a. By revising the section heading;

b. By revising paragraphs (a) and (b);

and

c. By removing paragraphs (c), (d),

and (e); as follows:

§ 700.4 Priorities and allocations in a

national security emergency.

(a) In the event of a national security

emergency, special rules may be

established as needed to supplement

this regulation, thus ensuring rapid

industrial response and the timely

availability of critical industrial items

and facilities to meet the urgent defense

or major disaster emergency

requirements of approved programs.

(b) The special rules established in

response to the emergency may include

provisions for the taking of certain

emergency official actions and the

allocation of critical and scarce

materials and facilities.

6. Section 700.7(a) is amended by

adding the phrase ‘‘and the Selective

Service Act and related statutes’’

following the phrase ‘‘the Defense

Production Act’’.

7. Section 700.8 is amended:

a. By removing the following

definitions: ‘‘Authorized program’’,

‘‘Controlled materials’’, ‘‘Controlled

materials suppliers’’, ‘‘Distributors of

controlled materials’’, ‘‘Further

conversion’’, ‘‘Lead time’’, ‘‘Minimum

mill quantity’’, and ‘‘Person’’;

b. By amending the definition of

‘‘Delegate Agency’’, revising the term

‘‘authorized programs’’ to read

‘‘approved programs’’;

c. By amending the definition of

‘‘Official action’’, adding a comma

followed by the phrase ‘‘the Selective

Service Act and related statutes,’’

following the phrase ‘‘the Defense

Production Act,’’;

d. By amending the definition of

‘‘Rated order’’, revising the term

‘‘authorized program’’ to read

‘‘approved program’’; and

e. By revising the introductory

sentence after the section heading, and

adding new definitions in alphabetical

order; as follows:

§ 700.8 Definitions.

In addition to the definitions

provided in Section 702 of the Defense

Production Act, the following

definitions pertain to all sections of the

regulation:

Approved program. A program

determined as necessary or appropriate

for priorities and allocations support to

promote the national defense by the

Secretary of Defense, the Secretary of

Energy, or the Director, Federal

Emergency Management Agency, under

the authority of the Defense Production

Act, the Stafford Act, and Executive

Order 12919, or the Selective Service

Act and related statutes and Executive

Order 12742.

* * * * *

Person. Any individual, corporation,

partnership, association, or any other

organized group of persons, or legal

successor or representative thereof; or

any State or local government or agency

thereof; and for purposes of

administration of this regulation,

includes the United States Government

and any foreign government or agency

thereof, delegated authority under this

regulation.

* * * * *

Selective Service Act and related

statutes. Section 18 of the Selective

Service Act of 1948 (50 U.S.C. app. 468),

10 U.S.C. 2538 and 2539, and 50 U.S.C.

82.

* * * * *

Stafford Act. Title VI (Emergency

Preparedness) of the Robert T. Stafford

Disaster Relief and Emergency

Assistance Act, as amended (42 U.S.C.

5195, et seq.).

8. Section 700.10 is amended:

a. By revising paragraph (a); and

b. By revising the phrase ‘‘Office of

Industrial Resource Administration’’ to

read ‘‘Office of Strategic Industries and

Economic Security’’, and revising the

phrase ‘‘authorized programs’’ to read

‘‘approved programs’’, in paragraph (b);

as follows:

§ 700.10 Delegation of authority.

(a) The priorities and allocations

authorities given to the President in

Title I of the Defense Production Act

with respect to industrial resources,

have been delegated to the Secretary of

Commerce under Executive Order 12919

of June 3, 1994 (59 FR 29525), as

amended. The priorities authorities

given to the President in the Selective

Service Act and related statutes with

respect to industrial resources, have also

been given delegated to the Secretary of

Commerce under Executive Order 12742

of January 8, 1991 (56 FR 1079), as

amended.

* * * * *

§ 700.11 [Amended]

9. Section 700.11(b) is amended by

revising the term ‘‘authorized programs’’

to read ‘‘approved programs’’.

10. Section 700.12 is amended by

revising paragraph (c) to read as follows:

§ 700.12 Elements of a rated order.

* * * * *

(c) The written signature on a

manually placed order, or the digital

signature or name on an electronically

placed order, of an individual

authorized to sign rated orders for the

person placing the order. The signature

or use of the name certifies that the

rated order is authorized under this

regulation and that the requirements of

this regulation are being followed; and

* * * * *

11. Section 700.13 is amended:

a. By adding a new paragraph (b)(4);

b. By removing paragraphs (c)(5),

(c)(6), and (c)(7);

c. By redesignating paragraph (c)(8) as

paragraph (c)(5) and amending

redesignated paragraph (c)(5) by adding

the phrase ‘‘or the Selective Service Act

and related statutes’’ following the

phrase ‘‘the Defense Production Act’’;

d. By revising paragraph (d); and

e. By adding an OMB control number;

as follows:
Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules 51395

§ 700.13 Acceptance and rejection of rated

orders.

* * * * *

(b) Mandatory rejection. * * *

(4) If a person is unable to fill all the

rated orders of equal priority status

received on the same day, the person

must accept, based upon the earliest

delivery dates, only those orders which

can be filled, and reject the other orders.

For example, a person must accept order

A requiring delivery on December 15

before accepting order B requiring

delivery on December 31. However, the

person must offer to accept the rejected

orders based on the earliest delivery

dates otherwise possible.

* * * * *

(d) Customer notification

requirements. (1) A person must accept

or reject a rated order in writing or

electronically within fifteen (15)

working days after receipt of a DO rated

order and within ten (10) working days

after receipt of a DX rated order. If the

order is rejected, the person must give

reasons in writing (not electronically)

for the rejection.

(2) If a person has accepted a rated

order and subsequently finds that

shipment or performance will be

delayed, the person must notify the

customer immediately, give the reasons

for the delay, and advise of a new

shipment or performance date. If

notification is given verbally, written or

electronic confirmation must be

provided within five (5) working days.

[The information collection

requirements in paragraphs (d)(1) and

(d)(2) are approved by the Office of

Management and Budget under control

number 0694–0053.]

12. Section 700.14 is amended by

revising paragraph (c) to read as follows:

§ 700.14 Preferential scheduling.

* * * * *

(c) Conflicting rated orders. (1) If a

person finds that production, delivery,

or performance against any accepted

rated orders conflicts with production,

delivery, or performance against other

accepted rated orders of equal priority

status, the person shall give preference

to the conflicting orders in the sequence

in which they were received (not to the

required delivery dates). If the

conflicting rated orders were received

on the same day, the person shall give

preference to those orders which have

the earliest delivery dates.

(2) If a person is unable to resolve

rated order production, delivery, or

performance conflicts under these rules,

the person should promptly seek special

priorities assistance as provided in

§§ 700.50 through 700.54. If the person’s

customer objects to the rescheduling of

a rated order, the customer should

promptly seek special priorities

assistance as provided in §§ 700.50

through 700.54. For any rated order

against which delivery or performance

will be delayed, the person must notify

the customer as provided in

§ 700.13(d)(2).

* * * * *

13. Section 700.17 is amended:

a. By removing the parenthetical

phrase ‘‘(except as provided in

§ 700.31(d)—Controlled materials

program identification symbols)’’ in

paragraph (b)(2);

b. By removing the parenthetical

phrase ‘‘(not applicable to controlled

materials producers)’’ in paragraph

(b)(3);

c. By removing the phrase found at

the end of the paragraph, ‘‘except as

provided in § 700.31(d) (Controlled

materials program identification

symbols)’’, in paragraph (c).

d. By revising paragraph (d)(1);

e. By redesignating paragraph (d)(2) as

(d)(3);

f. By adding a new paragraph (d)(2);

and

g. By revising paragraph (f); as

follows:

§ 700.17 Use of rated orders.

* * * * *

(d) Combining rated and unrated

orders. (1) A person may combine rated

and unrated order quantities on one

purchase order provided that:

(i) The rated quantities are separately

and clearly identified; and

(ii) The four elements of a rated order,

as required by § 700.12, are included on

the order with the statement required in

§ 700.12(d) modified to read in

substance:

This purchase order contains rated order

quantities certified for national defense use,

and you are required to follow all the

provisions of the Defense Priorities and

Allocations System regulation (15 CFR part

700) only as it pertains to the rated

quantities.

(2) A supplier must accept or reject

the rated portion of the purchase order

as provided in § 700.13 and give

preferential treatment only to the rated

quantities as required by this regulation.

This regulation may not be used to give

preferential treatment to the unrated

portion of the order.

* * * * *

(f) A person is not required to place

a priority rating on an order for less than

$100,000 provided that delivery can be

obtained in a timely fashion without the

use of the priority rating.

14. Section 700.18 is amended:

a. By adding a new paragraph

(a)(2)(v);

b. By revising paragraph (b)(1); and

c. By removing the first item listed,

‘‘communication services’’, and the

parenthetical phrase, ‘‘(as defined in

Schedule III)’’ which follows the item,

‘‘Copper raw materials’’, in paragraph

(b)(3); as follows:

§ 700.18 Limitations on placing rated

orders.

(a) * * *

(2) * * *

(v) Any items related to the

development of chemical or biological

warfare capabilities or the production of

chemical or biological weapons.

(b) Jurisdictional limitations. (1) The

priorities and allocations authority for

certain items has been delegated under

Executive Orders 12919 and 12742,

other executive order, or Interagency

Memoranda of Understanding to other

agencies. Unless otherwise agreed to by

the concerned agencies, the provisions

of this regulation are not applicable to

these items which include:

(i) Food resources, food resource

facilities, and the domestic distribution

of farm equipment and commercial

fertilizer (Department of Agriculture—

see Attachment A to DPAS Delegation 1

in Appendix I to Part 700 concerning

combat rations);

(ii) All forms of energy, including

radioisotopes, stable isotopes, source

material, and special nuclear material

produced in Government-owned plants

or facilities operated by or for the

Department of Energy (Department of

Energy);

(iii) Health resources (Department of

Health and Human Services);

(iv) All forms of civil transportation

(Department of Transportation);

(v) Water resources (Department of

Defense/U.S. Army Corps of Engineers);

(vi) Communications services

(National Communications System

under Executive Order 12472 of April 3,

1984); and

(vii) Mineral resources and mineral

processing facilities (Department of the

Interior/U.S. Geological Survey—see

Memorandum of Understanding

Between Interior and Commerce in

DPAS Appendix II to Part 700).

* * * * *

15. Section 700.21 is amended:

a. By revising paragraph (a);

b. By revising the phrase ‘‘materials or

equipment’’ to read ‘‘materials,

equipment, or services’’ in paragraphs

(b)(2), (c) introductory text, (c)(1)

introductory text, and (d); and

c. By revising the term ‘‘authorized

programs’’ to read ‘‘approved programs’’

in paragraph (f); as follows:
51396 Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules

§ 700.21 Application for priority rating

authority.

(a) For projects believed to maximize

domestic energy supplies, a person may

request priority rating authority for

scarce, critical, and essential supplies of

materials, equipment, and services

(related to the production of materials or

equipment, or the installation, repair, or

maintenance of equipment) by

submitting DOE Form PR 437 to the

Department of Energy. Blank

applications and further information

may be obtained from the U.S.

Department of Energy, Office of

Clearance and Support, Field/

Headquarters Support Division,

Forrestal Building, 1000 Independence

Avenue, S.W., Washington, D.C. 20585;

Attn.: PR–132.

* * * * *

16. Subpart F is amended:

a. By revising the Subpart heading;

b. By revising § 700.30; and

c. By removing § 700.31; as follows:

Subpart F—National Security

Emergency Preparedness and Critical

Items

§ 700.30 Priorities and allocations in a

national security emergency.

(a) In the event of a national security

emergency, special rules may be

established as needed to supplement

this regulation, thus ensuring rapid

industrial response and the timely

availability of critical industrial items

and facilities to meet the urgent defense

or major disaster emergency

requirements of approved programs.

(1) National security emergency. A

‘‘national security emergency’’ is

defined in section 101(a) of E.O. 12656

(November 18, 1988), as amended, as

any occurrence, including a natural

disaster or an accidental or man-caused

major disaster event such as military

attack, technological emergency, or

other emergency, that seriously

degrades or seriously threatens the

national or economic security of the

United States.

(2) Emergency official actions. (i) As

needed, this regulation may be

supplemented to include additional

definitions to cover civilian emergency

preparedness industrial items, support

for essential civilian programs, and

provisions for the taking of certain

emergency official actions under

sections 700.60 through 700.63.

(ii) Emergency official actions may

include:

(A) Controlling inventories of critical

and scarce defense and/or emergency

preparedness items;

(B) Restricting the purchase, use, or

distribution of critical and scarce

defense and/or emergency preparedness

items, or the use of production or

distribution facilities, for non-essential

purposes; and

(C) Converting the production or

distribution of non-essential items to the

production or distribution of critical

and scarce defense and/or emergency

preparedness items.

(3) Allocation of critical and scarce

items and facilities. (i) As needed, this

regulation may be supplemented to

establish special rules for the allocation

of scarce and critical items and facilities

to ensure the timely availability of these

items and facilities for approved

programs, and to provide for an

equitable and orderly distribution of

requirements for such items among all

suppliers of the items. These rules may

provide for the allocation of individual

items or they may be broad enough to

direct general industrial activity as

required in support of emergency

requirements.

(ii) Allocation rules (i.e., controlled

materials programs) were established in

response to previous periods of national

security emergency such as World War

II and the Korean Conflict. The basic

elements of the controlled materials

programs were the set-aside (the amount

of an item for which a producer or

supplier must reserve order book space

in anticipation of the receipt of rated

orders), the production directive

(requires a producer to supply a specific

quantity, size, shape, and type of an

item within a specific time period), and

the allotment (the maximum quantity of

an item authorized for use in a specific

program or application). These elements

can be used to assure the availability of

any scarce and critical item for

approved programs. Currently, a setaside applies only to metalworking

machines (see § 700.31).

(4) In the event that certain critical

items become scarce, and approved

program requirements for these items

cannot be met without creating a

significant dislocation in the civilian

market place so as to create appreciable

hardship, Commerce may establish

special rules under section 101(b) of the

Defense Production Act to control the

general distribution of such items in the

civilian market.

(b) Regional Emergency Coordinators.

(1) If due to a catastrophic national

security emergency event,

communications with Commerce

headquarters in Washington, D.C. are

severed, DPAS Emergency Delegation 1

will provide authority to the Regional

Emergency Coordinators (REC) located

in the Standard Federal Region Council

cities (Boston, New York, Philadelphia,

Atlanta, Dallas, Kansas City, Chicago,

Denver, San Francisco, and Seattle) to

represent the Secretary of Commerce,

and as necessary, act for the Secretary

to carry out the emergency industrial

production and distribution control

functions of Commerce as set forth in

this regulation, in any supplement

thereto, or other applicable authority.

See DPAS Emergency Delegation 1

(Appendix V to Part 700) for further

information about the authority and

duties of the RECs, and the effective

date of the Delegation.

(2) If DPAS Delegation 1 is

implemented due to a catastrophic

national security emergency event,

requests for special priorities assistance

under sections 700.50–55 of this

regulation should be filed with the

nearest Regional Emergency Coordinator

located in one of the Standard Federal

Region Council cities as provided in

DPAS Delegation 1 (Appendix V to Part

700).

17. Subpart G is amended:

a. By removing § 700.40;

b. By redesignating § 700.41 as

§ 700.31 in Subpart F; and

c. By removing the subpart heading

and reserving Subpart G for future use;

as follows:

Subpart G—[Reserved]

18. Section 700.50(c) is amended by

revising the term ‘‘ITA–999’’ to read

‘‘BXA–999’’ each of the three times it

appears in the paragraph; by revising

the term ‘‘(OMB #0625–0015)’’ to read

‘‘(OMB #0694–0057)’’; and by removing

the comma followed by the phrase ‘‘any

Commerce District Office’’.

19. Section 700.54 is amended by

revising the section heading and the

second sentence of the introductory

text, as follows:

§ 700.54 Instances where assistance may

not be provided.

* * * * *

Examples where assistance may not

be provided include situations when a

person is attempting to:

* * * * *

§ 700.55 [Amended]

20. Section 700.55 is amended:

a. By revising the term ‘‘authorized

programs’’ to read ‘‘approved programs’’

in paragraph (a);

b. By revising the term ‘‘Canadian

Department of Supply and Services’’ to

read ‘‘Canadian Public Works and

Government Services Canada’’ in

paragraphs (b)(2), (b)(3), (b)(4), (b)(5),

and (b)(6); and

c. By revising the term ‘‘ITA–999’’ to

read ‘‘BXA–999’’ in paragraph (b)(6).
Federal Register / Vol. 62, No. 190 / Wednesday, October 1, 1997 / Proposed Rules 51397

§§ 700.70, 700.71, 700.72, 700.23, 700.75,

700.80, 700.91 [Amended]

21. The phrase ‘‘the Selective Service

Act and related statutes,’’ is added

following the phrase ‘‘the Defense

Production Act,’’ wherever it appears in

the following places:

Sec.

700.70(a)

700.71(a)

700.71(c)(1)

700.71(c)(2)

700.71(c)(3)

700.72(a)

700.73(a)

700.73(b)

700.75

700.80(a)(2)

700.91(d)

22. Section 700.72(b) is amended by

revising the term ‘‘Assistant General

Counsel for International Trade’’ to read

‘‘Chief Counsel for Export

Administration’’.

23. Section 700.74 is amended:

a. By revising paragraph (a);

b. By removing paragraph (b);

c. By redesignating paragraph (c) as

paragraph (b), and paragraph (d) as

paragraph (c); as follows:

§ 700.74 Violations, penalties, and

remedies.

(a) Willful violation of the provisions

of Title I or Sections 705 or 707 of the

Defense Production Act, the priorities

provisions of the Selective Service Act

and related statutes, this regulation, or

an official action, is a crime and upon

conviction, a person may be punished

by fine or imprisonment, or both. The

maximum penalty provided by the

Defense Production Act is a $10,000

fine, or one year in prison, or both. The

maximum penalty provided by the

Selective Service Act and related

statutes is a $50,000 fine, or three years

in prison, or both.

* * * * *

24. The term ‘‘Office of Industrial

Resource Administration’’ is revised to

read ‘‘Office of Strategic Industries and

Economic Security’’ in the following

places:

§§ 700.80, 700.81, 700.93 [Amended]

Sec.

700.80(a)

700.80(c)

700.80(d)

700.81(a)

700.81(b)

700.93

25. The phrase ‘‘Assistant Secretary

for Trade Administration’’ is revised to

read ‘‘Assistant Secretary for Export

Administration’’ in the following places:

Sec.

700.80(d)

700.81(a)

700.81(b)

700.81(d)

700.81(e)

700.81(f)

700.81(g)

700.81(h)

26. Section 700.81(b) is amended by

revising the term ‘‘International Trade

Administration’’ to read ‘‘Bureau of

Export Administration’’.

27. Section 700.91(a) is amended by

revising the term ‘‘(OMB #0625–0107)’’

to read ‘‘(OMB #0694–0053)’’.

28. Section 700.93 is amended by

revising the phrase ‘‘telephone: (202)

377–4506’’ to read ‘‘telephone: (202)

482–3634, or FAX: (202) 482–5650’’.

Schedule 1 to Part 700—[Amended]

29. Schedule 1 to Part 700 is

amended:

a. By revising the column heading

‘‘Authorized Program’’ to read:

‘‘Approved Program’’; and by revising

the title of the Schedule and the first

paragraph of the two paragraph

explanation of the Schedule;

b. By removing the following program

identification symbols and associated

authorized program names from the

Schedule: ‘‘C8—Controlled materials for

Defense Industrial Supply Center

(DISC)’’, ‘‘H2—Controlled materials

producers’’, ‘‘H3—Further converters

(controlled materials)’’, and ‘‘H4—

Distributors of controlled materials’’;

c. By removing the term ‘‘Federal

Aviation Administration’’ from the list

of Associated Agencies of the

Department of Defense contained in

footnote 1;

d. By adding the following program

identification symbols and associated

approved program names to the

Schedule: ‘‘C1—Food resources (combat

rations)’’ under the ‘‘Defense Programs’’

heading; and ‘‘H8—Special projects’’,

under the ‘‘Other Defense, Energy and

Related Programs’’ heading;

e. By revising the ‘‘Other Energy

Programs’’ heading to read: ‘‘Domestic

Energy Programs’’; and revising the

‘‘F3’’ program name ‘‘Construction and

Maintenance’’ to read: ‘‘Construction,

repair, and maintenance’’; and

f. By revising the ‘‘N1’’ program name

‘‘Approved civil defense programs’’ to

read ‘‘Emergency Preparedness

Activities’’; as follows:

Defense Priorities and Allocations

System

Schedule 1 to Part 700—Approved

Programs and Delegate Agencies

The programs listed in this schedule

have been approved for priorities and

allocations support under this

regulation. They have equal preferential

status.

* * * * *

Schedule II to Part 700—[Amended]

30. Schedule II to part 700 (Controlled

Materials), Schedule III to part 700

(Technical Definitions of Controlled

Materials Products), Schedule IV to part

700 (Copper Controlled Materials

Producers’ Set-aside Base and

Percentages), and Schedule V to part

700 (Nickel Alloys Controlled Materials

Producers’ Set-aside Base and

Percentages) are removed.

Issued: September 29, 1997.

William V. Skidmore,

Assistant Secretary (Acting) for Export

Administration.

[FR Doc. 97–26109 Filed 9–30–97; 8:45 am]

BILLING CODE 3510–DT–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 180

[OPP–300558; FRL–5746–3]

RIN 2070–AC18

Various Inert Ingredients; Tolerance

Exemptions

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed Rule.

SUMMARY: EPA proposes to establish

exemptions from the requirement of a

tolerance for residues of 2-propene-1-

sulfonic acid, sodium salt, polymer with

ethenol and ethenyl acetate; polyvinyl

pyrrolidone butylated polymer; vinyl

pyrrolidone-acrylic acid copolymer;

maleic anhydride-diisobutylene

copolymer, sodium salt; vinyl alcoholvinyl acetate copolymer, benzaldehydeo-sodium sulfonate condensate when

used as inert ingredients in pesticide

formulations applied to growing crops,

crops after harvest, and/or animals. EPA

is proposing this regulation on its own

initiative.

DATES: Comments, identified by the

docket control number [OPP–300558],

must be received on or before December

1, 1997.

ADDRESSES: By mail, submit written

comments to: Public Information and

Records Integrity Branch, Information

Resources and Services Division

(7506C), Office of Pesticide Programs,

Environmental Protection Agency, 401

M St., SW., Washington, DC 20460. In

person, deliver comments to: Rm. 1132,

CM #2, 1921 Jefferson Davis Highway,

Arlington, VA.