Federal Register / Vol. 78, No. 128 / Wednesday, July 3, 2013 / Rules and Regulations 39971 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations as follows: 

PART 91—GENERAL OPERATING AND 

FLIGHT RULES 

■ 1. The authority citation for part 91 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 1155, 40103, 

40113, 40120, 44101, 44111, 44701, 44704, 

44709, 44711, 44712, 44715, 44716, 44717, 

44722, 46306, 46315, 46316, 46504, 46506– 

46507, 47122, 47508, 47528–47531, articles 

12 and 29 of the Convention on International 

Civil Aviation (61 Stat. 1180). 

■ 2. In Appendix E to part 91, revise the 

entry for Altitude under the column 

heading ‘‘Parameters’’ to read as 

follows: 

Parameters Range Installed system 1 minimum 

accuracy (to recovered data) 

Sampling 

interval (per 

second) 

Resolution 4 read out 

*******

Altitude .................................... ¥1,000 ft. to max cert. alt. of 

A/C.

±100 to ±700 ft. (see Table 1, 

TSO C51–a).

1 25 to 150 ft. 

* * * * * * * 

PART 121—OPERATING 

REQUIREMENTS: DOMESTIC, FLAG, 

AND SUPPLEMENTAL OPERATIONS 

■ 3. The authority citation for part 121 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 40119, 

41706, 44101, 44701–44702, 44705, 44709– 

44711, 44713, 44716–44717, 44722, 46105. 

■ 4. In Appendix M to part 121, revise 

footnote 5 to parameter 14a, Yaw 

control position(s) (fly-by-wire), to read 

as follows: 

Appendix M to Part 121 

* * * * * 5For A330/A340 series airplanes, 

resolution = 1.18% (0.703° > 0.120°). 

For A330/A340 series airplanes, seconds 

per sampling interval = 1. 

* * * * * 

PART 125—CERTIFICATION AND 

OPERATIONS: AIRPLANES HAVING A 

SEATING CAPACITY OF 20 OR MORE 

PASSENGERS OR A MAXIMUM 

PAYLOAD COPACITY OF 6,000 

POUNDS OR MORE; AND RULES 

GOVERNING PERSONS ON BOARD 

SUCH AIRCRAFT 

■ 5. The authority citation for part 125 

continues to read as follows: 

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

44702, 44705, 44710–44711, 44713, 44716– 

44717, 44722. 

■ 6. In Appendix E to part 125, revise 

footnote 5 to parameter 14a, Yaw 

control position(s) (fly-by-wire), to read 

as follows: 

Appendix E to Part 125 

* * * * * 5For A330/A340 series airplanes, 

resolution = 1.18% (0.703° > 0.120°). 

For A330/A340 series airplanes, seconds 

per sampling interval = 1. 

* * * * * 

Issued under authority of 49 U.S.C. 106(f) 

and 44701(a) in Washington, DC, on June 21, 

2013. 

Michael P. Huerta, 

Administrator. 

[FR Doc. 2013–16011 Filed 7–2–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 774 

[Docket No. 120806310–3555–02] 

RIN 0694–AF76 

Implementation of the Understandings 

Reached at the 2012 Australia Group 

(AG) Plenary Meeting and the 2012 AG 

Intersessional Decisions; Changes to 

Select Agent Controls—Correction 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule; correcting 

amendment. 

SUMMARY: The Bureau of Industry and 

Security (BIS) published a final rule in 

the Federal Register on Wednesday, 

June 5, 2013 (78 FR 33692), that 

amended the Export Administration 

Regulations (EAR) to implement the 

understandings reached at the June 2012 

plenary meeting of the Australia Group 

(AG) and the 2012 AG intersessional 

decisions. That final rule also amended 

the EAR to reflect recent changes to the 

controls maintained by the Animal and 

Plant Health Inspection Service 

(APHIS), U.S. Department of 

Agriculture, and the Centers for Disease 

Control and Prevention (CDC), U.S. 

Department of Health and Human 

Services, on the possession, use, and 

transfer of select biological agents 

within the United States. The preamble 

of that final rule contained an error in 

its description of the amendments to 

Export Control Classification Number 

(ECCN) 1C351 that were based on the 

understandings reached at the 2012 AG 

Plenary. The preamble also contained 

an error in its description of the 

amendments to ECCN 2B352 that were 

based on the 2012 AG intersessional 

decisions. In addition, that final rule 

contained errors affecting the control 

language in ECCN 2B352, which 

controls specified equipment capable of 

use in handling biological materials. 

This document corrects these errors. 

DATES: This rule is effective July 3, 

2013. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Sangine, Director, Chemical 

and Biological Controls Division, Office 

of Nonproliferation and Treaty 

Compliance, Bureau of Industry and 

Security, Telephone: (202) 482–3343. 

SUPPLEMENTARY INFORMATION: 

Background 

On June 5, 2013, the final rule 

‘‘Implementation of the Understandings 

Reached at the 2012 Australia Group 

(AG) Plenary Meeting and the 2012 AG 

Intersessional Decisions; Changes to 

Select Agent Controls’’ was published in 

the Federal Register (78 FR 33692). In 

the preamble of that final rule, the 

discussion of the amendments to ECCN 

1C351 erroneously indicated that the 

bacterium ‘‘Coxiella burnetii’’ was 

previously controlled under ECCN 

1C351.c.11 when, in fact, this bacterium 

was previously controlled under ECCN 

1C351.c.10 and is now controlled under 

1C351.c.13, based on the amendments 

contained that final rule. Instead, prior 

to the publication of that final rule, 

ECCN 1C351.c.11 controlled 

‘‘Enterohaemorrhagic Escherichia coli, 

serotype O157 and other verotoxin 

producing serotypes.’’ As a result of the 

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39972 Federal Register / Vol. 78, No. 128 / Wednesday, July 3, 2013 / Rules and Regulations 

amendments made by that final rule, 

these bacteria are now controlled under 

ECCN 1C351.c.17, with the control 

language having been clarified to read 

‘‘Shiga toxin producing Escherichia coli 

(STEC) of serogroups O26, O45, O103, 

O104, O111, O121, O145, O157, and 

other shiga toxin producing 

serogroups.’’ 

The preamble of that final rule also 

contained an error in its description of 

the amendments to ECCN 2B352. 

Specifically, in the description of the 

technical characteristics of the spraydrying equipment now controlled under 

ECCN 2B352.f, the preamble mistakenly 

referred to ‘‘a typical mean product 

particles size’’ when it should have said 

‘‘a typical mean product particle size,’’ 

consistent with the control language in 

ECCN 2B352.f.2. 

In addition, that final rule amended 

ECCN 2B352, under the ‘‘Items’’ 

paragraph in the List of Items 

Controlled, by redesignating paragraphs 

f. through h. as paragraphs g. through i., 

respectively, and adding a new 

paragraph f. to control specified spray 

drying equipment capable of drying 

toxins or pathogenic microorganisms. 

However, that final rule did not make 

the necessary conforming changes, in 

ECCN 2B352.i.3 and Technical Note 2 to 

ECCN 2B352, to reflect the 

redesignation of 2B352.h (specified 

spraying or fogging systems and 

components therefor) as 2B352.i. 

This rule makes these conforming 

changes, as follows. First, in ECCN 

2B352.i.3, the phrase ‘‘as specified in 

paragraphs h.1 and h.2 of this ECCN’’ is 

revised to read, ‘‘as specified in 

paragraphs i.1 and i.2 of this ECCN.’’ 

Second, in Technical Note 2 to ECCN 

2B352, the phrase ‘‘as specified in 

2B352.h’’ is revised to read, ‘‘as 

specified in 2B352.i.’’ These conforming 

changes do not affect either the scope of 

the EAR controls that apply to 

equipment controlled under ECCN 

2B352 or the specific equipment that is 

subject to these EAR controls. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as amended by 

Executive Order 13637 of March 8, 

2013, 78 FR 16129 (March 13, 2013), 

and as extended by the Notice of August 

15, 2012, 77 FR 49699 (August 16, 

2012), has continued the EAR in effect 

under the International Emergency 

Economic Powers Act. BIS continues to 

carry out the provisions of the Export 

Administration Act, as appropriate and 

to the extent permitted by law, pursuant 

to Executive Order 13222. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has been determined to be not 

significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor shall any person be 

subject to a penalty for failure to comply 

with, a collection of information subject 

to the requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This rule 

contains a collection of information 

subject to the requirements of the PRA. 

This collection has been approved by 

OMB under Control Number 0694–0088 

(Multi-Purpose Application), which 

carries a burden hour estimate of 58 

minutes to prepare and submit form 

BIS–748. Send comments regarding this 

burden estimate or any other aspect of 

this collection of information, including 

suggestions for reducing the burden, to 

Jasmeet Seehra, Office of Management 

and Budget (OMB), and to the Office of 

Administration, Bureau of Industry and 

Security, Department of Commerce, 

14th Street and Pennsylvania Avenue 

NW., Room 6622, Washington, DC 

20230. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

participation, and a delay in effective 

date, are inapplicable because this 

regulation involves a military and 

foreign affairs function of the United 

States (5 U.S.C. 553(a)(1)). The changes 

contained in this rule are nonsubstantive technical corrections of a 

previously published rule that has 

already been exempted from notice and 

comment and delay in effective date 

provisions, because the content of the 

June 5, 2013, final rule involves a 

military and foreign affairs function of 

the United States (5 U.S.C. 553(a)(1)). 

The corrections contained in this final 

rule are essential to ensuring the 

accurate and complete implementation 

of the June 5, 2013, final rule. 

Further, no other law requires that a 

notice of proposed rulemaking and an 

opportunity for public comment be 

given for this final rule. Because a 

notice of proposed rulemaking and an 

opportunity for public comment are not 

required for this rule under the 

Administrative Procedure Act or by any 

other law, the analytical requirements of 

the Regulatory Flexibility Act (5 U.S.C. 

601 et seq.) are not applicable. 

Therefore, this regulation is issued in 

final form. 

List of Subjects in 15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, part 774 of the Export 

Administration Regulations (15 CFR 

parts 730–774) is amended as follows: 

PART 774—[AMENDED] 

■ 1. The authority citation for 15 CFR 

Part 774 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 

seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 15, 2012, 77 

FR 49699 (August 16, 2012). 

Supplement No. 1 to Part 774— 

[Amended] 

■ 2. In Supplement No. 1 to Part 774 

(the Commerce Control List), Category 

2—Materials Processing, ECCN 2B352 is 

amended under the ‘‘Items’’ paragraph 

in the List of Items Controlled section 

by revising paragraph i.3 and Technical 

Note 2 that follows paragraph i. to read 

as follows: 

2B352 Equipment capable of use in 

handling biological materials, as follows (see 

List of Items Controlled). 

* * * * * 

List of Items Controlled 

Unit: * * * 

Related Controls: * * * 

Related Definitions: * * * 

Items: 

* * * * * 

i. * * * 

i.3. Aerosol generating units specially 

designed for fitting to the systems as 

specified in paragraphs i.1 and i.2 of this 

ECCN. 

Technical Notes: 

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Federal Register / Vol. 78, No. 128 / Wednesday, July 3, 2013 / Rules and Regulations 39973 

1. * * * 

2. This ECCN does not control spraying or 

fogging systems and components, as 

specified in 2B352.i., that are demonstrated 

not to be capable of delivering biological 

agents in the form of infectious aerosols. 

* * * * * 

Dated: June 27, 2013. 

Bernard Kritzer, 

Director, Office of Exporter Services. 

[FR Doc. 2013–15970 Filed 7–2–13; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 602 

[TD 9623] 

RIN 1545–BI99 

Application of Section 108(i) to 

Partnerships and S Corporations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations relating to the application of 

section 108(i) of the Internal Revenue 

Code (Code) to partnerships and S 

corporations and provides rules 

regarding the deferral of discharge of 

indebtedness income and original issue 

discount deductions by a partnership or 

an S corporation with respect to 

reacquisitions of applicable debt 

instruments after December 31, 2008, 

and before January 1, 2011. The 

regulations affect partnerships and S 

corporations with respect to 

reacquisitions of applicable debt 

instruments and their partners and 

shareholders. 

DATES: Effective Date: These regulations 

are effective on July 2, 2013. 

Applicability Date: For dates of 

applicability, see § 1.108(i)–0(b). 

FOR FURTHER INFORMATION CONTACT: 

Joseph R. Worst, Office of Associate 

Chief Counsel (Passthroughs and 

Special Industries), (202) 622–3070 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collection of information 

contained in these regulations has been 

reviewed and approved by the Office of 

Management and Budget in accordance 

with the Paperwork Reduction Act of 

1995 (44 U.S.C. 3507) under control 

number 1545–2147. The collection of 

information in these final regulations is 

in § 1.108(i)–2(b)(3)(iv). Under 

§ 1.108(i)–2(b)(3)(iv), when a 

partnership makes an election under 

section 108(i), one or more of the 

partners in the partnership may be 

required to provide certain information 

to the partnership so that the 

partnership can correctly determine 

each such partner’s deferred section 752 

amount with respect to an applicable 

debt instrument. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by the Office of 

Management and Budget. 

Books or records relating to a 

collection of information must be 

retained as long as their contents may 

become material in the administration 

of any internal revenue law. Generally, 

tax returns and return information are 

confidential, as required by 26 U.S.C. 

6103. 

Background 

Section 108(i) was added to the Code 

by section 1231 of the American 

Recovery and Reinvestment Tax Act of 

2009, Public Law 111–5 (123 Stat. 338 

(2009)), and generally provides for an 

elective deferral of cancellation of debt 

income (COD income) realized by a 

taxpayer from a reacquisition of an 

applicable debt instrument that occurs 

after December 31, 2008, and before 

January 1, 2011. COD income deferred 

under section 108(i) is included in gross 

income ratably over a five taxable-year 

period (inclusion period) beginning 

with the taxpayer’s fourth or fifth 

taxable year following the taxable year 

of the reacquisition. 

When a debt instrument is issued (or 

treated as issued) as part of the 

reacquisition, some or all of any original 

issue discount (OID) expense accruing 

from the debt instrument in a taxable 

year prior to the first taxable year of the 

inclusion period may also be required to 

be deferred (deferred OID deduction). 

The aggregate amount of deferred OID 

deductions is limited to the amount of 

COD income deferred with respect to 

the applicable debt instrument for 

which the section 108(i) election is 

made, and the aggregate amount of 

deferred OID deductions is taken into 

account ratably over the inclusion 

period. 

In general, COD income deferred 

under section 108(i) and related 

deferred OID deductions with respect to 

an applicable debt instrument that have 

not been previously taken into account 

(deferred items) are accelerated and 

taken into account in the taxable year in 

which an acceleration event occurs. 

A section 108(i) election is irrevocable 

and, if a section 108(i) election is made, 

sections 108(a)(1)(A), (B), (C), and (D) do 

not apply to the COD income that is 

deferred under section 108(i). Section 

108(i)(7) authorizes the Secretary to 

prescribe regulations, rules, or other 

guidance as may be necessary or 

appropriate for purposes of applying 

section 108(i). 

In August 2009, the IRS and the 

Treasury Department issued Rev. Proc. 

2009–37 (2009–36 IRB 309), which 

provides election procedures for 

taxpayers (including partnerships and S 

corporations) and other guidance under 

section 108(i). Partnerships and S 

corporations that make an election 

under section 108(i) (electing 

partnership or electing S corporation) 

must follow the election procedures and 

reporting requirements of Rev. Proc. 

2009–37. 

Temporary regulations (TD 9498, 75 

FR 49380) and a notice of proposed 

rulemaking (REG–144762–09, 75 FR 

49427) (proposed regulations) crossreferencing the temporary regulations 

were published in the Federal Register 

on August 13, 2010. No public hearing 

was requested or held. However, written 

comments responding to the notice of 

proposed rulemaking were received 

from the public. These comments were 

considered and are available for public 

inspection at http:// 

www.regulations.gov or upon request. 

After consideration of the comments, 

the proposed regulations are adopted as 

amended by this Treasury decision, and 

the corresponding temporary 

regulations are removed. The revisions 

are discussed in this preamble. 

Summary of Comments and 

Explanation of Provisions 

A. Partnership-Level Election 

Section 108(i)(5)(B)(iii) provides that 

in the case of a partnership, S 

corporation, or other passthrough entity 

that reacquires an applicable debt 

instrument, the election under section 

108(i) shall be made by the partnership, 

S corporation, or other entity involved. 

One commenter suggested that the final 

regulations permit a partner in a 

partnership to make a section 108(i) 

election if the partnership does not 

make the election. The commenter 

reasoned that a partner-level election 

rule would align section 108(i) with 

section 108(d)(6), which generally 

applies the rules under section 108 at 

the partner level. Additionally, the 

commenter noted that a partner-level 

election would be beneficial when the 

partners who control the partnership 

have no interest in making a section 

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