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Citation: 45 Fed. Reg. 52741 1980 

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Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

the procedures of 40 CFR Part 124 do not

apply.

(r) Source Obligation.

(4) At such time that a particular

source or modification becomes a major

stationary source or major modification

solely by virtue of a relaxation in any

enforceable limitation which was

established after August 7.1980, on the

capacity of the source or modification

otherwise to emit a pollutant, such as a

restriction on hours of operation, then

the requirements or paragraphs {j)

through (s) of this section shall apply to

the source or modification as though

construction had not yet commenced on

the source or modification.

" (s) Environmentalimpact Statements.

(t] Disputed Permits or

Redesignations.

(u) Delegation ofAuthority.

(v) Innovative Control Technology. (1)

An owner or operator of a proposed

major stationary source or major

modification may request the

Administrator in writing no later than

the close of the comment period under

40 CFR 124.10 to approve a system of

innovative control technology.

(2) The Administrator shall, with the

consent of the governor(s) of the

affected state(s), determine that the

source or modification may employ a

system of innovative control technology,

if:

(i) The proposed control system would

not cause or contribute to an

unreasonable risk to public health,

welfare, or safety in its operation or

function;

(ii) The owner or operator agrees to

achieve a level of continuous emissions

reduction equivalent to that which

would have been required under

paragraph 0)(2) by a date specified by

the Administrator. Such date shall not

be later than 4 years from the time of

startup or 7 years from permit issuance;

(ill) The source or modification would

meet the requirements of paragraphs (0)

and (k) based on the emissions rate that

the stationary source employing the

system of innovative control technology

would be required to meet on the date

specified by the Administrator,

(iv) The source or modification would

not before the date specified by the

Administrator.

(a) Cause or contribute to a violation

of an applicable national ambient air

quality standard; or

(b) Impact any Class I area; or

Cc) Impact any area where an

applicable increment is known to be

violated; and

(v) All other applicable requirements

including those for public participation

have been met.

(3) The Administrator shall withdraw

any approval to employ a system of

innovative control technology made

under this section, if:

(i) The proposed system fails by the

specified date to achieve the required

continuous emissions reduction rate; or

(ii) The proposed system fails before

the specified date so as to contribute to

an unreasonable risk to public health,

welfare, or safety; or

(iii) The Administrator decides at any

time that the proposed system is

unlikely to achieve the required level of

control or to protect the public health,

welfare, or safety.

(4) If a source or modification fails to

meet the required level of continuous

emission reduction within the specified

time period or the approval is

withdrawn in accordance with

paragraph (v)(3), the Administrator may

allow the source or modification up to

an additional 3 years to meet the

requirement for the application of best

available control technology through use

of a demonstrated system of control.

(w) Permit rescission. (1) Any permit

issued under this section or a prior

version of this section shall remain in

effect, unless and until it expires under

paragraph (s) of this section or is

rescinded.

(2) Any owner or operator of a

stationary source or modification who

holds a permit for the source or

modification which was issued under 40

CFR 52.21 as in effect on June 19,1978,

may request that the Administrator

rescind the permit or a particular portion

of the permit

(3) The Administrator shall grant an

application for rescission if the

application shows that this section

would not apply to the source or

modification.

(4) If the Administrator rescinds a

permit under this paragraph, the public

shall be given adequate notice of the

rescission. Publication of an

announcement of rescission in a

newspaper of general circulation in the

affected region within 60 days of the

rescission shall be considered adequate

notice.

2. (b) In § 52.60 (AL, § 52.96 (AK), § 52.144 (AZ), § 52.131 (AR), § 52.270

(CA), § 52.343 (CO), § 52.383 (CT),

§ 52.432 (DE), § 52.499 (DC), § 52.530

(FL), § 52.632 (HI), § 52.683 (I), § 62.738

(IL], § 52.793 (IN), § 52.833 (IA), § 52.884

(KS), § 52.931 (KY), § 52.986 (LA),

§ 52.1118 MD), § 52.1180 (MI, § 52.1234

MN), § 52.1280 (MS), § 52.1339 (MO),

1 52.1382 MT, § 52.1436 (NB), § 52.1485

NV, § 52.1529 NH, § 52.1603 NJ),

52.1634 (NM, § 52.1689 (NY), § 52.1778

(NC). § 52.1884 (OH), § 52.1929 (OK],

§ 52.1987 (OR), § 52.2058 (PA), § 52.08

(RI), § 52.2131 (SC), § 52.2178 (SD),

1 52.23O3 (TX), § 52.2346 (UT), § 52.2451

(VA), § 52.2497 [WA), § 52.2528 fWV),

§ 52.2581 (WI), § 52.2676 (GU), § 52.2729

(PR), § 52.2779 (VI), and § 52.2827

(AreS), paragraphs (a) and (b) are

revised to read as follows:

(a) The requirements of sections 160

through 165 of the Clean Air Act are not

met, since the plan does not include

approvable procedures for preventing

the significant deterioration of air

quality.

(b) Regulations for preventing

significant deterioration of air qualty

The provisions of 52.21(b) through (w)

are hereby incorporated and made a

part of the applicable state plan for the

State of

Emission Offset Interpretative Ruling

3. Sections , U. 11 and IV of the

Emission Offset Interpretative Ruling, 40

CFR Part 51 Appendix S, as revised 44

FR 3274 (January 16,1979] and 45 FR

31307 (May 13,1980), are amended as

follows:

A. By adding a new third paragraph to

Section L to read as follows:

L Introduction

The requirement of this Ruling shall not

apply to any major stationary source or major modification that was not subject to the

Ruling as in effect on January 16,1979, if the

owner or operator. A. Obtained all final federal. state, anl

local preconstruction approvals or permits

necessary under the applicable State

Implementation Plan before August 7,190;,

B. Commenced construction within 18

months from August 7,1980, or any earlier

time required under the applicable State

Implementation plan. and

C. Did not discontinue construction for a period of 18 months or more and completed construction within a reasonable time.

B. By revising Section IH, subsection A,

to read as follows:

IL Initial Screening Analyses and

Determination of Applicable Requirements.

A. Defzitons-For the purposes of this

Ruling: . "Stationary source" means any building,

structure, facility, or Installation whch emits

or may emit any air pollutant subject to

regulation under the Act.

2. "Building. structure, or facility- means

all of the pollutant-emitting activities which

belong to the same industrial grouping, are

located on one or more contiguous or

adjacent properties, and are under the control

52741
52742 Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 1 Rules and Regulations

of the same person (or persons under common control). Pollutant-emitting activities

shall be considered as part of the same- industrial grouping if they belong to the same "Major Group" (i.e., which have the same two

digit code) as described in the Standard

Industrial Classification Manual, 1972, as amended by the 1977 Supplement (U.S.

Government Printing Office stocknmbers

4101-0066 and 003-005-00176-0, xespectively).

3. "Installation" means an identifiable

piece of process equipment.

4. "Potential to emit" means the maximum

capacity of a stationary source to emit a pollutant -under its physical and operational

design. Any physical or operational limitation on the capacity of the source to emit a

pollutant, including air pollution control

equipment and restrictions on hours Df

operation or on the type or amount of

material combusted, stored, or processej,

shall be treated as part of its design only if

the limitation or the effect it would have on- emissions is federally enforceable. Secondary

emissions do not count in determining the

potential to emit of a stationary source. 5.[i) "Major stationary source" means: (a) Any stationary source of air pollutants

which emits, or has the potential to emit, 100

tons per year or more of any pollutant subject

to regulation under the Act; or (b) Any physical change thafwould occur at a stationary source not qualifying under

paragraph 5.[i}[a) as a major stationary

source, if the change would constitute -a major stationary source by itself.

(ii) A major stationary source that is major

for volatile organic compounds shall be

considered major for ozone. 6.(i) "Major modification" means any

physical change in or change in the method of

operation of a major stationary source that

would result in a significant net emissions

increase of any pollutant subject to regulation

under the Act.

(ii) Any net emissions increase that is

considered significant for volatile organic

compounds shall be considered significant for ozone. (iii) A physical change or change in the

method of operation shall not include:

(a) Routine maintenance, repair, and

replacement;

(b) Use of an alternative fuel or raw material by reason of an order under sections

2 (a) and (b] of the Energy Supply and

Environmental Coordination Act of 1974 (or

any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the

Federal Power Act;

(c) Use of an alternative fuel by reasoiiof an order or rule under section 125 of the Act;

(d) Use of an alternative fuel at a steam

generating unit to the extent that the fuel is

generated from municipal solid waste;

(e) Use of an alternative fuel or raw material by a stationary source which.

(1) The source was capable of

accommodating before December21, 1976,

unless such change would be prohibited

under any federally enforceable permit

condition which was established after -

December 21, 1976, purusant to40 CFR 52.21 or under regulations approved pursuant to 40

CFR 51.18 or 40 CFR 51.24; or (2) The source is approved to use under

anypermit issued under this xuling;

M) An increase in the hours of operation or in the production rate, unless such change is

prohibited underany federally enforceable

permit condition which was established after

December 21,1976 pursuant to 40 CFR 52.21

or under regulations approved pursuant to 40

CFR 51.18 or 40 CFR 51.24;

(g) Any change in ownership at a stationary source. 7.(i) "Net emissions increase" means the

amount by which the sum of the following

exceeds zero: (a) Any increase in actual emissions from a

particular physical change or change in the

method of operation at a stationary source;

and

(b) Any other increases and decreases in

actual emissions at the source that are contemporaneous with the particular change

and are otherwise creditable.

(ii) An increase or decrease in actual

emissions is contemporaneous with the

increase from the particular change only if it occurs between:

(a) The date five years before construction on the particular change commences and

(b] The date that the increase from the

particular change occurs. (iI) An increase or decrease in actual

emissions is creditable only if the

Administrator has not xelied on it in'issuing a

permit for the source under this Ruling which

permit is in effect when the increase in actual

emissions from the particular change occurs. (iv) An increase in actual emissions is

creditable only to the extent that the new level of actual emissions exceeds the old

level.

(v) A decrease in actual emissions is

creditable only to the extent that:

(a) The old level of actual emissions or the

old level of allowable emissions, whichever

is lower, exceeds the new level of actual

emissions;

(b) It is federally enforceable at and after

the time that actual construction on the

particular change begins;

(c) The reviewing authority has not relied

on it in issuing any permit under regulations

approved pursuant to 40 CFR 51.18; and

(c It has approximately the same qualitative7 significance for public health and

welfare as that attributed to the increase

from the particular change.

(vi) An increase that results from a

physical change at a source occurs -when the

emissions unit on which construction

occurred becomes operational and begins to

emit a particular pollutant. Any replacement

unit that requires shakedown becomes

operational only after a reasonable

shakedown period, not to exceed 180 days.

8. "Emissions unit" means anypart of a stationary source which emits or would have

the potential to emit any pollutant subject to

regulationunder the Act.

9. "Reconstruction" will be presumed to

have taken place where the fixed capital cost

of the new components exceeds 50 per cent

of the fixed capital cost of a comparable

entirely new stationary source. Any final

' decision as to whether reconstruction has

occurred shalllbe made in accordance with

the provisions of 40 CFR 60.15(f) (1)-(3). A

reconstructed stationary source will be

treated as:anew stationary source for

purposes of this Ruling. in determining lowest

achievable emission rate for a reconstructed

stationary source, the provisions of 40 CFR

60.15(f)(4) shall be taken Into account in

assessing whether a new source performance

standard Is applicable to such stationary source.

10. "Fixed capital cost" means the capital

needed to provide all the depreciable

components.

11. "Secondary emissions" means emissions which would occur as a result of

the construction or operation of a major

stationary source or major modification, but

do not come from the major stationary source or major modification itself. For the purpose

of this Ruling, secondary emissions must be

specific, well defined, quantifiable, and

impact the same general area as the

stationary source or modification which causes the secondary emissions. Secondary

emissions may include, but are not limited to:

(i) Emissions from ships or trains cominlg to or from the new or modified stationary source and

(ii) Emissions from any offsite support

facility which would not otherwise be

constructed or increase Its emissions as a result of the construction or operation of the

major stationary source or major

modification.

12. "Fugitive emissions" means those

emissions which could not reasonably pass

through a stack, chimney, vent, or other

functionally equivalent opening.

13.(l) "Significant" means, in reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates:

Pollutant and Emissions Rate

Carbon monoxide: 100 tons per year (tpy]

Nitrogen oxides: 40 tpy

Sulfur dioxide: 40 tpy

Particulate matter. 25 tpy

Ozone: 40 tpy of volatile organic compounds

Lead: 0.6 tpy

14. "Allowable emissions" means the

emissions rate calculated using the maximum

rated capacity of the source (unless the

source is subject to federally enforceable

limits which restrict the operating rate, or hours of operation, or both) and the most

stringent of the following:

(I) Applicable standards as set forth in 40

CFR Parts 60 and 61;

(ii) Any applicable State Implementatlon

Plan emissions limitation, including those

with a future compliance date; or (iII) The emissions rate specified as a federally enforceable permit condition,

including those with a future compliance

date.

15. "Federally enforceable" means all

limitations and conditions which are enforceable by the Administrator, Including

those requirements developed pursuant to 40

CFR Parts 60 and 61, requirements within any

applicable State Implementation Plan, and

any permit requirements established

pursuant to this Ruling, 40 CFR 52.21, or under regulations approved pursuant to 40

CFR 51.18 or 51.24.

16.(ii "Actual emissions" means the actual

rate of emissions of a pollutant from an
Federal Register / VoL 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

emissions unit as determined in accordance

with subparagraphs (ii)-{iv) below.

(ii) In general, actual emissions as of a particular date shall equal the average rate,

in tons per year, at which the unit actually emitted the pollutant during a two-year

period which precedes theparticular date

and which is representative of normal source operation. The reviewing authority shall

allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions

shall be calculated using the unit's actual

operating hours, production rates, and types

of materials processed, stored or combusted

during the selected time period.

(il) The reviewing authority may presume

that source-specific allowable emissions for

the unit are equivalent to the actual

emissions of the unit.

(iv) For any emissions unit which has not

begun normal operations on the particular

date, actual emissions shall equal the

potential to emit of the unit on that date.

17. "Construction" means any physical

change or change in the method of operation

(including fabrication, erection installation,

demolition, or modification of an emissions

unit) which would result in a change in actual

emissions.

18. "Commence" as applied to construction

of a major'stationary source or major

modification means that the owner or operator has all necessary preconstruction

approvals or permits and either has:

(i) Begun, or caused to begin, a continuous

program of actual on-site construction of the

source, to be completed within a reasonable

time; or (ii) Entered into binding agreements or contractual obligations, which cannot be

cancelled or modified without substantial

loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.

19. "Necessary preconstruction, approvals or permits" means those permits or approvals

required under federal air quality control

laws and regulations and those air quality

control laws and regulations which are part

of the applicable State Implementation Plan.

20. "'Begin actual construction" means, in

general, initiation ofphysical aon-site

construction activities on an emissions unit

which are of a permanent nature, Such

activities include, but are not limited to.

installation of building supports and

foundations, laying of underground pipework,

and construction of permanent storage

structures. With respect to a change in

method of operating this term refers to those

on-site activities other than preparatory

activities which mark the initiation of the

change.

21. "Lowest achievable emission rate"

means, for any source, the more stringent rate

of emissions based on the following:

(i) The most stringent emissions limitation

which is contained in the implementation

plan of any state for such class or category of

stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not

achievable; or (ii)The most stringent emissions limitation

which is achieved in practice by such class or

category of stationary source. This limitation.

when applied to a modification, means the

lowest achievable emissions rate for the new or modified emissions units within the

stationary source. Inno event shall the

application of this term permit a proposed new or modified stationary source to emit

any pollutant in excess of the amount

allowable under applicable new source standards of performance.

22. "Resource recovery facility" means any

facility at which solid waste Is processed for

the purpose of extracting, converting to

energy, or otherwise separating and

preparing solid waste for reuse. Energy

conversion facilities must utilize solid waste

to provide more than 50 percent of the beat

input to be considered a resource recovery

facility under this Ruling.

C. By amending Section II, subsection

C by deleting footnote 2 and the second

paragraph. The first paragraph is revised

to read as follows:

C. Re&-iew of specfied sources for air

quality impact.

In addition, the reviewing authority must

determine whether the major stationary source or major modification would be

constructed in an area designated in 40 CFR

81.300 etseq. as nonattainment fors

pollutant for which the stationary source or modification is major.

D. By revising Section II, subsection F

to read as follows:

F. Fugitive emissions sources. Section IV.

A. of this Ruling shall not apply to a source or modification that would be a major

stationary source or major modification only

if fugitive emissions, to the extent

quantifiable, are considered in calculating the

potential to emit of the stationary source or

modification and the source does not belong

to any of the following categorles:

(1) Coal cleaning plants (with thermal

dryers);

(2) Kraft pulp mills;

(3) Portland cement plants; (4) Primary zinc smelters:

(5) Iron and steel mills;

(0) Primary aluminum ore reduction plants-

(7) Primary copper smelters-

(8) Municipal incinerators capable of

charging more than 250 Ions of refuse per

day,

(9) Hydrofluoric, sulfuric, or nitric acid

plants;

(10) Petroleum refineries;

(11] Lime plants;

(12) Phosphate rock processing plants; (13) Coke oven batteries;

(14) Sulfur recovery plants;

(15) Carbon black plants (furnace process);

(16) Primary lead smelters;

(17) Fuel conversionplantr,

(18) Sintering plants;

(19) Secondary metal production plants.

(20) Chemical process plants;

(21) Fossil-fuel boilers (or combination

thereof) totaling more than 250 million British

thermal units perhour heat input:

(22) Petroleum storage and transfer units

with a totalstorage capacity exceeding

300,000 barrels;

(23) Taconite ore processing plants;

(24) Glass fiber processing plants;

(25] Charcoal production plants;

(26) Fossil fuel-fired steam electric plants

of more than 250 million British thermal units

per hour heat input;

(27) Any other stationary source category

which, as of August 7,1980, is being regulated

under sectop 111 or112 of the Act.

E. By deleting Footnote 3 of

subsection C of Section III and revising

the third paragraph as follows:

C. Review of s;ecif7led s2=-ces of air

quality iapact.

For ozone, sources of volatile organic

compounds, locating outside a designated ozone nonattainment area, will be presumed

to have no significant impact on the

designated nonattainment area. If ambient

monitoring indicates that the area of source location Is in fact nonattainment. then the source may be permitted under the provisions

of any state plan adopted pursuant to section

110(a](2)(D) of the Act until the area is

designated nonattainment and a State

Implementation Plan revision is approved. If no state plan pursuant to section 110(a]2 (D)

has been adopted and approved, then this

Ruling shall apply.

F. By adding a new subsection F. to

IV., to read as follows:

IV. Sources ThatWould Locate in a Designated Nonattainment Area

F. Source ObLigation.

At such time that a particular source or modification becomes a majorstationary source or major modification solely by vrtue

of a relaxation in any enforceable limitation

which was established after August 7,1980, on the capacity of the source or modification

otherwise to emit a pollutant, such as a restriction on hours of operation. then the

requirements of this Ruling shall apply to the source or modification as though construction

had not yet commenced on the source or modification.

State Plans For New Source Revriew For

Nonattainment Purposes.

4. Section 40 CFR 51.18(] is amended

to read as follows

§51.18 Review of new stationary sources modifications.

(j) State Implementation Plan

provisions satisfying sections 172(b)(6)

and 173 of the Act shall meet the

following conditions:

(1) All such plans shall use the

specific d nitions Deviations from the

following wording will be approved only

if the state specifically demonstrates

that the submitted definition is more

stringent, orat least asstringent, in all

respects as the corresponding definition

below:

(i) "Stationary source" means any

building, structure, facility, or

installation which emits or may emit

52743
52744 Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

any air pollutant subject to regulation

under the Act.

(ii) "Building, structure, or facility"

means all of the pollutant-emitting

activities which belong to the same

industrial grouping, are located on one

or more contiguous or adjacent

properties, and are under the control of

the same person (or persons under

common control). Pollutant-emitting

activities *shall be considered as part of

the same industrial grouping if they

belong to the same "Major Group" (i.e.,

which have the same two-digit code) as

described-m the Standard Industrial

Classification Manual, 1972, as amended by the 1977 Supplement (U.S.

Government Printing Office stock . numbers 4101-0066 and 003-005-00176-

0, respectively).

(iii) "Installation" means an

identifiable piece of process equipment.

(iv) "Potential to emit" means the

maximum capacity of a stationary

source to emit a pollutant under its

physical and operational design. Any

physical or operational limitation on the

capacity of the source to emit a

pollutant, including air pollution control

equipment and restrictions on hours of

operation or on the type or amount of

material combusted, stored, or

processed, shall be treated as part of its

design only if the limitation or the effect

it would have on emissions is federally

enforceable. Secondary emissions do

not count in determining the potential to

emit of a stationary source.

(v)(a) "Major stationary source"

means:

(1) Any stationary source of air

pollutants which emits, or has the'

potential to emit, 100 tons per year or

more of any pollutant subject to

regulation under the Act; or

(2) Any physical change that would

occur at a stationary source not

qualifying under paragraph (v)(a](1) as a

major stationary source, if the change

would constitute a major stationary

source by itself.

(b) A major stationary source that is

major for volatile organic compounds

shall be considered major for ozone.

(vi)(a) "Major modification" means

any physical change in or change in the

method of operation of a major

stationary,source that would result in a

significant net emissions increase of any

pollutant subject to regulation under the

Act.

(b) Any net emissions increase that is

considered significant for volatile

organic compounds shall be considered

significant for ozone.

(c) A physiral change or change in the

method of operation shall not include:

(1) Routine maintenance, repair and

replacement;

(2) Use of an alternative fuel or raw

material byreason of an order under

sections 2(a) and (b) of the Energy

Supply and Environmental Coordination

Act of 1974 (or any superseding

legislation) or by reason of a natural gas

curtailment plan pursuant to the Federal

Power Act;

(3)-Use of an alternative fuel by

- reason of an order or rule under section

125 of the Act;

(4) Use of an alternative fuel at a

steam generating unit to the extent that

the fuel is generated from municipal

solid waste;

(5) Use of an alternative fuel or raw

material by a stationary source which:

(i) The source was capable of

accommodating before December 21,

1976, unless such change would be

prohibited under any fedeially

enforceable permit condition which was

established after December 21, 1976

pursuant to 40 CFR 52.21 or under

regulations approved pursuant to 40 CFR

51.18 or 40 CFR 51.24; or

(ii) The source is approved to use

under any permit issued under

regulations approved pursuant to this

section;

(6) An increase in the hours of

operation or in the production rate,

unless such change is prohibited under

any federally enforceable permit

condition which was established after

December 21,1976 pursuant to 40 CFR

52.21 or regulations approved pursuant

to 40 CFR 51.18 or 40 CFR 51.24.

(7) Any change in ownership at a

stationary source.

(vii)(a) "Net emissions increase"

means the amount by which the sum of

the following exceeds zero:

(1] Any increase in actual emissions

from a particular physical change or

change in the method of operation at a

stationary source; and

(2) Any other increases and decreases

in actual emissions at the source that

are contemporaneous with the particular

change and are otherwise creditable.

b) An increase or decrease in actual

emissions is contemporaneous with the

increase from the particular change only

if it occurs before the date that the

increase from the particular change

occurs.

(c) An increase or decrease in actual

emissions is creditable only if:

(1) It occurs within a reasonable

period to be 4pecified by the reviewing

authority; and

(2) The-reviewing authority has not

relied on it in issuing a permit for the

source under regulations approved

pursuant to this section which permit is

in effect when the increase in actual

emissions from the particular change

occurs.

(d) An increase In actual emissions Is

creditable only to the extent that the

new level of actual emissions exceeds

the old level.

(e) A decrease in actual emissions Is

creditable only to the extent that:

(1) The old level of actual emissions

or the old level of allowable emissions,

whichever, is lower, exceeds the new

level of actual emissions;

(2) It is federally enforceable at and

after the time that actual construction

on the particular change begins; and

(3) The reviewing authority has not

relied on it in issuing any permit under

regulations approved pursuant to 40 CFR

51.18 or the state has not relied on It In

demonstrating attainment or reasonable

further progress.

(4) It has approximately the same

qualitative significance for public health

and welfare as that attributed to the

increase from the particular change.

Wf) An increase that results from a

physical change at a source occurs when

the emissions unit on which

construction occurred becomes

operational and begins to emit a

particular pollutant, Any replacement

unit that requires shakedown becomes

operational only after a reasonable

shakedown pefiod, not to exceed 180

days.

(viii) "Emissions unit" means any part

of a stationary source which emits or

would have the potential to emit any

pollutant subject to regulation under the

Act.

(ix) "Reconstruction" will be

presumed to have taken place where the

fixed capital cost of the new

components exceeds 50 percent of the

fixed capital cost of a comparable

entirely new stationary source. Any

final decision as to whether

reconstruction has occurred shall be

made in accordance with the provisions

of 40 CFR 60.15(fo (1)-(3). A

reconstructed stationary source will be

treated as a new stationary source for

purposes of this subsection. In

determining lowest achievable emission

rate for a reconstructed stationary

source, the provisions of 40 CFR

60.15(f0(4) shall be taken into account in

assessing whether a new source

performance standard is applicable to

such stationary source.

(x) "Fixed capital cost" means the

capital needed to provide all the

depreciable components.

(xi) "Secondary emissions" means

emissions which would occur as a result

of the construction or operation of a

major stationary source or major

modification, but do not come from the

major stationary source or major

modification itself. For the purpose of

this section, secondary emissions must
Federal Register / Vol. 45, No. 154 / Thursday. August 7, 1980 / Rules and Regulations

be specific, well defined, quantifiable,

and impact the same general area as the

stationary source or modification which

causes the secondary emissions.

Secondary emissions may include, but

are not limitedto:

(a) Emissions fromships or trains

coming to-or from the new or modified

stationary source; and

(b] Emissions from any offsite support

facility which would not otherwise be

constructed or increase its emissions as

a result of the construction or operation

of the major stationary source or major

modification.

(xii) "Fugitive emissions" means those

emissions which could not reasonably

pass through a stack, chimney, vent, or

other functionally equivalent opening.

(xiii) "Significant" means, in reference

to a net emissions increase or the

potential of a source to emit any of the

followingpollutants, a rate of emissions

that would equal or exceed any of the

following rates:

Pollutant andEnzissions Rate

Carbon monoxide: 100 tons peryear (tpy)

Nitrogen oxides. 40 tpy Sulfur dioxide: 40 tpy Particulate matter: 25 tpy Ozone 40 tpy of volatile organic compounds Lead. 0.6 tpy

(xiv) "Allowable emissions' means

the emissions rate of a stationary source

calculated using the maximum rated

capacity Df the source [unless the source

is subject to federally enforceable limits

which restrict the operating rate, or

hours of operation, or bn1k) and the

most stringent of the following: (a) The applicable standards set forth

in 40 CFR Parts 60 or 61;

(b) Any applicable State

Implementation Plan emissions

limitation including those with a future

compliance date; or

(c) The emissions rate specified as a

federally enforceable permit condition,

including those with a future compliance

date.

(xv)(a) "Actual emissions" means the

actual rate of emissions of a pollutant

from an emissions anit as determined in

accordance with subparagraphs (b)-(d)

below.

(b) In general, actual emissions as of a

particular date shaft equal the average

rate, in tons per year, at which the unit

actually emitted the pollutant during a

two-year period which precedes the

particular date and which is

representative of normal source

operation. The reviewing authority shall

allow the use of a different time period

upon a determination that it is more

representative of normal source

operation. Actual emissions shall be

calculated using the unit's actual

operating hours, -production rates, and

types of materials processed, stored, or

combusted during the selectedlime

period.

(c) The reviewing authority may

presume that the source-specific

allowable emissions for the unit are

equivalent to the actual emissions-of the

unit.

(d) For any emissions unit which has

not begun normal operations on the

particular date, actual emissions shall

equal the potential to emit of the unit on

that date.

(xvi) "Lowest achievable emission

rate" means, for any source. the more

stringent rate of emissions based on the

following:

(a) The most stringent emissions'

limitation which is contained in the

implementation plan of any state for

such class or category of stationary

source, unless the owner oroperator of

the proposed stationary source

demonstrates that such limitations are

not achievable; or

(b) The most stringent emissions

limitation which is achieved in practice

by such class or categoryof stationary

source. This limitation, when applied to

a modification, means the lowest

achievable emissions rate for the new or

modified emissions units within the

stationary source. In no event shall the

application of this term permit a

proposed new or modified stationary

source to emit any pollutant in excess of

the amount allowable under an

applicable new source standard of

performance.

(xvii) "Federally enforceable" means

all limitations and conditions which are

enforceable by the Administrator,

including those requirements developed

pursuant to 40 CFR Parts 60 and 81,

requirements within any applicable

State Implementation Plan, and any

permit requirements established

pursuant to 40 CFR 52.1 or under

regulations approved pursuant to tiis

section, 40 CFR 51.11, or 51.24.

(xviii) 'Begi actual -construction"

means in general, initiation of physical

on-site onstruction activities on an

emissions unit which are of a permanent

nature. Such activities include, but are

not limited to,-installation of building

supports and foundations, laying of

underground pipework, and construction

of permanent storage structures. With

respect to a change in method of

operating this term refers to those onsite activities other than preparatory

activities which mark the initiation of

the change.

(xix) "Commence" as applied to

construction of a major stationary

source or major modification means that

the owner or operator has all necessary

preconstruction approvals or permits

and either has:

(a) Begun, or caused to begin, a

continuous program of actual on-site

construction of the source, to be

completed within a reasonable time; or

(b) Entered into binding agreements or

contractual obligations, which cannot be

cancelled or modified without

substantialloss to the owner or

operator, to undertake a program of

actual construction of the source to be

completed within a reasonable time.

(xx) "Necessry preconstruction

approvals or permits" means those

permits or approvals required under

federal air quality control laws and

regulations and those air quality control

laws and regulations which are part of

the applicable State Implementation

Plan.

(xxi) "Construction" means any

physical change or change in the method

of operation (including fabrication,

erection, installation, demolition, or

modification of an emissions unit) which

would result ina change in actual

emissions.

(2) Each plan shall adopt a

preconstruction review program to

satisfy therequirements of sections

172(b)(6) and 173 of the Act for any area

designated nonattainment for any

national ambient air quality standard

under 40 CFR 61.300 et seq. Such a

program shall apply to any new major

stationary source -or major modification

that is major for the pollutant for which

the area is designated nonattainment, if

the stationary source or modification

would locate anywhere in the

designated nonattainment area.

(3)(i) Each plan shall provide-that for

sources and modifications subject to

any preconstruction review program

adopted pursuant to this subsection the

baseline for determining =edit for

emissions reductions is the emissions

limit under the applicable State

Implementation Plan in effect at the time

the application to construct is filed.

except that the offset baseline shall be

the actual emissions-of thesource from

which offset credit is obtained where:

(a) The demonstration ofreasonable

further progress and attainment of

ambient air quality standards is based

upon the actual emissions of sources

located within a designated

nonattainment area -for which the

preconstruction review program was

adopted; or

(b) The applicable State

Implementation Plan does not contain

an emissions limitation for that source

or source category.

(ii) The plan shall further provide that-

(a) WThere the emissions limit under

the applicable State Implementation

52745
52746 Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

Plan allows greater emissions than the

potential to emit of the source,

emissions offset credit will be allowed

only for control below this potential; (b) For an existing fuel combustion

source, credit shall be based on theallowable emissions under the

applicable State Implementation Plan

for the type of fuel being burned at the

time the application to construct is filed.

If the existing source commits to switch

to a cleaner fuel at some future date,

emissions offset credit based on the

allowable (or actual] emissions for the

fuels involved is not acceptable, unless

the permit is conditioned to require the

use of a specified alternative control

measure which would achieve the same

degree of emissions reduction should the

source switch back to a dirtier fuel at

some later date. The reviewing authority

should ensure that adequate long-term supplies of the new fuel are available

before grariting emissions offset credit

for fuel switches;

(c) Emissions reductions achieved by shutting down an existing source or

permanently curtailing production or

operating hours below baseline levels

may be credited, provided that the work

force to be affected has been notified of

the proposed shutdown or curtailment.

Source shutdowns and curtailments in

production or operating hours occurring prior to the date the new source

application is filed generally may not be

used for emissions offset credit.

However, where an applicant can

establish that it shut down or curtailed

production after August 7, 1977, or less

than one year prior to the date of permit

application, whichever is earlier, and'

the proposed new source is a

replacement for the shutdown or

curtailment credit for such shutdown or

curtailment may be applied to offset

emissions from the. new source;

(d) No emissions credit may be

allowed for replacing one hydrocarbon

compound with another of lesser

reactivity, except for those compounds

listed in Table I of EPA's

"Recommended Policy on Control of

Volatile Organic Compounds." (42 FR

35314, July 8, 1977);

(e) All emission reductions claimed as

offset credit shall be federally

enforceable;

W Procedures relating to the

permissible location of offsetting emissions- shall be followed which are at

least as stringent as those set out in 40

CFR Part 51 Appendix S; section IV.D.

(g) Credit for an emissions reduction

can be claimed to the extent that the

reviewing authority has not relied on it

in issuing any permit under regulations

approved pursuaxit to 40 CFR 51.18 or

the state has not relied on it in

demonstrating attainment or reasonable

further progress.

(4) Each plan may provide that the

provisions of this subsection do not

apply to a source or modification that

would be a major stationary source or

major modification only if fugitive

emissions, to the.extent quantifiable, are

considered in calculating the potential to

emit of the stationary source or

modification and the source does not

belong to any of the following

categories:

(a) Coal cleaning plants (with thermal

dryers]; (b) Kraft pulp mills;

(c] Portland cement plants;

(d) Primary zinc smelters;

(e) Iron and steel mills;

(f) Primary aluminum ore reduction

plants;

(g) Primary copper smelters;

(h) Municipal incinerators capable of

charging more than 250 tons of refuse

per day,

(i) Hydrofluoric, sulfuric, or nitric acid

plants;

U] Petroleum refineries;

(k] Lime plants; (1) Phosphate rock processing plants;

(m) Coke oven batteries;

(n) Sulfur recovery plants;

(a) Carbon black plants (furnace

process);

(p) Primary lead smelters;

(q) Fuel conversion plants;

(r) Sintering plants;

(s) Secondary metal production

plants;

(t) Chemical piocess plants;

(u) Fossil-fuel boilers (or combination

thereof) totaling more than 250 million

British thermal units per hour heat input;

(v) Petroleum storage and transfer

units with a total storage capacity

exceeding 300,000 barrels;

(w) Taconite ore processing plants; (x) Glass fiber processing plants; (y) Charcoal production plants; (z) Fossil fuel-fired steam electric

plants of more than 250 million British

thermal units per hour heat input;. (aa) Any other stationary source

category which, as of August 7,1980, is

being regulated under section 111 or 112,

of the Act.

(5) Each plan shall include

enforceable procedures to provide that.

(i) Approval to construct shall not

relieve any owner or operator of the

responsibility to comply fully with

applicable provision of the plan and any

other requirements under local, state or

federal law.

(ii) At such time that a particular

source or modification becomes a major stationary source or major modification

solely by virtue of a relaxation in any

enforcement limitation which was

-established after August 7, 1980, on the

capacity of the source or modification

otherwise to emit a pollutant, such as a

restriction on hours of operation, then

the requirments of regulations approved

pursuant to this section shall apply to

the source or modification as though

construction had not yet commenced on

the source or modification.

Restrictions on Construction For

Nonattainment Areas

5. 40 CFR 52.24 is amended by adding

new paragraphs (f), (g), (hi) and (i) to

read as follows:

§52.24 Statutory restriction on new

stationary sources. *t i * * *

(f) The following definitions shall

apply under this section.

(1) "Stationary source" means any

building, structure, facility, or

installation which emits or may emit

any air pollutant subject to regulation

under the Act.

(2) "Building, structure, or fability"

means all of the pollutant-emitting

activities which belong to the same

industrial grouping, are located on one

or more contiguous or adjacent

properties, and are under the control of

the same person (or persons under

common control). Pollutant-emitting

activities shall be considered as part of

the same industrial grouping if they

belong to the same "Major Group" (ie,,

which have the same two-digit code) as

described in the following document,

Standard Industrial Classification

Manual, 1972, as amended by the 1977

Supplement (U.S. Government Printing

Office stock numbers 4101-0006 and

003-005-o0176-0, respectively). (3) "Installation" means an

identifiable piece of process equipment.

(4) "Potential to emit" means the

maximum capacity of a stationary

source to emit a pollutant under its

physical and operational design. Any

physical or operational limitation on the

capacity of the source to emit a

pollutant, including air pollution control

equipment and restrictions on hours of

operation or on amount of material

combusted, stored, or processed, shall

be treated as part of Its design only If

the limitation or the effect it would have

on emissions is federally enforceable.

Secondary emissions do not count in

determining the potential to emit of a

stationary source.

(5)(i) "Major stationary source"

means:

(a) Any stationary source of air

pollutants which emits, or has the

potential to emit, 100 tons per year or

more of any pollutant subject to

regulation under the Act; or
Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

'(b) Any physical change that would

occur at a stationary source not

qualifying under paragraph (5)(i](a) as a

major stationary source, if the change

would constitute a Major stationary

source by itself.

(i) A major stationary source that is

major for volatile for organic compounds

shall be considered major for ozone.

(6)(i) "Major modification" means any

physical change in or change in the

method of operation of a major

stationary source that would result in a

significant net emissions increase of any

pollutant subject to regulation under the

Act.

(ii] Any net emissions increase that is

considered significant for volatile

organic compounds shall be considered

significant for ozone.

(ii) A physical change or change in

the method of operation shall not

include:

(a] Routine maintenance, repair, and

replacement; (b) Use of an alternative fuel or raw

material by reason of an order under

sections 2 (a) and (b) of the Energy

Supply and Environmental Coordination

Act of 1974 (or any superseding

legislation] or by reason of a natural gas

curtailment plan pursuant to the Federal

Power Act;

(c) Use of an alternative fuel by

reason of an order or rule under section

125 of the Act;

(d) Use of an alternative fuel at a

steam generating unit to the extent that

the fuel is generated from municipal

solid waste; I (e] Use of an alternative fuel or raw

material by a stationary source which:

(1) The source was capable of

accommodating before July 1,1979,

unless such change would be prohibited

under any federally enforceable permit

condition which was established after

July, 1,1979 pursuant to 40 CFR 52.21 or

under regulations approved pursuant to

40 CFR 51.18 or 40 CFR 51.24; or

(2] The source is approved to use

under any permit issued under

regulations approved pursuant to 40 CFR

51.18;

() An increase in the hours of

operation or in the production rate,

unless such change is prohibited under

any federally enforceable permit

,condition which was established after

July 1,1979 pursuant to 40 CFR 52.21 or

under regulations approved pursuant to

40 CFR 51.18 or 40 CFR 51.24.

(g] Any change in ownership at a

stationary source.

(7](i] "Net emissions increase" means

the amount by which the sum of the

following exceeds zero:

(a) Any increase in actual emissions

from a particular physical change or

change in the method of operation at a

stationary source; and

(b) Any other increases and decreases

in actual emissions at the source that

are contemporaneous with the particular

change and are otherwise creditable.

(ii) An increase or decrease in actual

emissions is contemporaneous with the

increase from the particular change only

if it occurs between:

(a) The date five years before

construction on the particular change

commences and

(b] The date that the increase from the

particular change occurs.

(iII) An increase or decrease in actual

emissions is creditable only if the

Administrator has not relied on it in

issuing a permit for the source under

regulations approved pursuant to 40 CFR

51.18 which permit is in effect when the

increase in actual emissions from the

particular change occurs.

(iv) An increase in actual emissions is

creditable only to the extent that the

new level of actual emissions exceeds

the old level.

(v) A decrease in actual emissions is

creditable only to the extent that*

(a) The old level of actual emissions

or the old level of allowable emissions,

whichever is lower, exceeds the new

level of actual emissions

(b) It is federally enforceable at and

after the time that construction on the

particular change begins; and

(c) The Administrator or reviewing

authority has not relied on It in issuing

any permit under regulations approved

pursuant to 40 CFR 51.18 or the State

has not relied on it in demonstrating

attainment or reasonable further

progress. (d) It has approximately the same

qualitative significance for public health

and welfare as that attributed to the

increase from the particular change.

(vi) An increase that results from a

physical change at a source occurs when

the emissions unit on which

construction occurred becomes

operational and begins to emit a

particular pollutant Any replacement

unit that requires shakedown becomes

operational only after a reasonable

shakedown period, not to exceed 180

days. (8) "Emissions unit" means any part of

a stationary source which emits or

would have the potential to emit any

pollutant subject to regulation under the

Act

(9) "Reconstruction" will be presumed

to have taken place where the fixed

capital cost of the new components

exceeds 50 percent of the fixed capital

cost of a comparable entirely new

stationary source. Any final decision as

to whether reconstruction has occurred

shall be made in accordance with the

provisions of 40 CFR 60.15(f (1)-(3]. A

reconstructed stationary source will be

treated as a new stationary source for

purposes of this subsection.

(10) "Fixed capital cost" means the

capital needed to provide all the

depreciable components.

(11) "Secondary emissions" means

emissions which would occur as a result

of the construction or operation of a

major stationary source or major

modification, but do not come from the

major stationary source or major

modification itself. For the purpose of

this section, secondary emissions must

be specific, well defined, quantifiable,

and impact the same general area as the

stationary source or modification which

causes the secondary emissions.

Secondary emissions may include, but

are not limited to:

(i) Emissions from ships or trains

coming to or from the new or modified

stationary source and

(ii) Emissions from any offsite support

facility which would not otherwise be

constructed or increase its emissions as

a result of the construction or operation

of the major stationary source or major

modification.

(12) "Fugitive emissions" means those

emissions which could not reasonably

pass through a stack, chimney, vent, or

other functionally equivalent opening.

(13) "Significant" means, in reference

to a net emissions increase or the

potential of a source to emit any of the

following pollutants, a rate of emissions

that would eijual or exceed any of the

following rates:

Pollutant and Fssions Rate

Carbon monoxide: 100 tons per year (tpy)

Nitrogen oxides: 40 tpy Sulfur dioxide: 40 tpy Particulate matter. 25 tpy Ozone: 40 tpy of volatile organic compounds Lead. 0.6 tpy

(14) "Allowable emissions" means the

emissions rate of a stationary source

calculated using the maximum rated

capacity of the source (unless the source

is subject to federally enforceable limits

which restrict the operating rate, or

hours of operation, or both] and the

most stringent of the following:. (i) The applicable standards set forth

in 40 CFR Parts 60 and 61;

(ii) Any applicable State

Implementation Plan emissions

limitation, including those with a future

compliance date; or

(iiI) The emissions rate specified as a

federally enforceable permit condition,

including those with a future compliance

date.

(15] 'Tederally enforceable" means all

limitations and conditions which are

52747
52748 Federal Register I Vol. 45, No. 154 / Thursday, August 7., 1980 / Rules and Regulations

enforceable by the Administrator, , including 'those '-reqfurements developed

pursuant 'to 40fCFRParts;60and-61,

requirements within any applicable

State Implementation Plan; and any

permit requiremenlts established

pursuant to 40 CFR 52.21 or-under

regulations approved-pursuant to,40 CFR

51.18 and 51.24.

(16)[i) "'Actual emissions" means 'the

actual rate of erissions of-a pollutant

from an emissions unit, as determined in

accordance with subparagraphs-[ii)-(iv)

below.

fii) In general, actual emissions asoof:a

particular date shall equalthe average

rate, In tons per year, at -which the unit

-actually emitted the pollutant during a

two-year period which"precedes the

particular-date and'which is

representative of-normal source

operation. The Administrator shall

allow the -use of a d:ifferent time period

upon adetermination thatitismore

representative of normal'source

.operation. Actual emissions shalbe

calculated using the zunit's actual

operating-hours, production rates, mand

types ofimdterials processed, stored,-or

combusted during-theelected time

period.

(iii) The Administratornay presume

that source-specific allowable emissions

for themnitre'equivalent tothe actual

emissions df:themnit.

,(iv) For any emissionsmanit which has

not begun normal-operations on the

particular date, :actual emissions shall

equal the potential to emitofthe unit on

that date.

(17) "Construction" means any

physical change or change in the method

of operation (including fabrication,

erection, installation, demolition, or

modification) of an emissions'uiit which

would result in a change in -actual

emissions.

(18) "Commence" as applied to

construction of a major stationary

source or major-modification means that

the Downer or operator has all necessary

preconstruction approvals orpermits

and eitherhas:

(i) Begun, or causedlo begin, a

continuous program-of actual on.site

constructionof the source, to be

completed within a -reasonable lime; or

'(ii) Entered into binding agreements or

contractual obligations, which-cannot be

cancelled or modified without

substantialloss to the owner-or

operator,'to undertake a program-of

actual construction of the source to be

-completed-within a-reasonable time.

(-19) "Necessary preconstruction

,approvals or permits" means those

permits or approvals required under

Tederal air-quality control laws and

regulations and those air-qualitycontrol

laws and regulations which are part of

the applicable State Implementation

Plan.

.120) "Begin actual-construction"

means, in general, initiation'of physical

on-sgile -construction activities on an

emissions unit which are of a-permanent

nature. Such activities nclude, but -are

not limited :to, installa'ion ofbuilding - supporls-and foundations, laying of

underground pip ework, andconstruction

of permanentstqrage slructures. ith

respect to a change in method-of

operations, thislerm rnfers to those onsite activities other than preparatory

activities which mark the initiation of

'the change..

(g) This section shall not applyto a

major stationary source ortnajor

modificationif 1he source or

modification was not subject to 40 CFR

Partl3 AppendixS. asin effect on

January 16,1979, and Ihe owner or

operator. (1) 'Obtaimed all final federal, state,

and local preconstruction approvals or

permits necessary under the applicable

State'Implementalion Plan before

August 7,1980;

,(2) Commehced construction-within 18

monthsfrom August -, 1980, or any

earlier time required under the

applicable State Implementation lan;

and

(3) Did not discontinue construction

for aperiod of 18 months or more and

completea sonstruction withina

reasonable.time.

(h This section shall not 'applyto a -source ormodification That wouid be a

majorsltationary source orimajor

modifica'ion.only iffugtive emissions,

to the extent quanifiable, are

consideredincalculating the potential to

emit of the stationary source or

modification and the source does not

belong to anyof the following

categories: (1) Coal-cleanig plants [with thermal

dryers);

42) IYraft pulp mills;

13) Porfland cement plants; (4) Primary zincomelters;

(5) Iron and steelmills;

(6) Primary aluminum ore reduction

plants;

'(7) Primary copper-smelters; (8) Municipal incinerators -capable of

charging'more than 250 tons -of refuse

per day;

(9) Hydrofluoric,-sufuic, ornitric acid

plants;

[10) Petroleum refineries;

(11) lUme plants;

(12) Phosphate rock processing plants;

-113) Coke oven batteries;

(14) Sulfur recovery-plants;

(15) Carbon black-plantsi(furnace

process);

(16) -Primary leadsmelters;

(17) Fuel conversion-plants;"

'(18) Sintering plants; .

(19) Secondary metal production 'plants;

(20) :Chenical process plants;

(21) Fossil-fuel boilers ,(or combination

thereof) totaling more than 250 million

British thermal units perhourheat input:

(22) Petroleum storage and transfer

units with a total storage capacity

exceeding 300,000 barrels;

'(23Taconlte ore processing plants;

(24) Glass 'fiber processing plants;

(25) Charcoal production plants;

(26) Fossil fuel-fired steam electric

plants of more than 250 million British

thermal units per hour heat input;

,(27) Any other stationary source

category which, as of August 7,1980, is

being regulated under section 111 or 112

of the Act.

fi) At such time that a particular

source or-modification becomes a major

stationary source or majormodification

solely by-virtue of a relaxation in any

enforceable limitation which was

established after August 7, 1980, on the

capacity of the source or modification

otherwise to emit a pollutant, such as a

restriction onihours'of operation, then:

(1) If the constructionmoratorium

umposed pursuant to this section is still

in effect for the nonattainment area in

whichthe source or modification is

located, then the permit may not be so

revised; or

(2) If the construction moratorium is

no-longer-ineffect in that area, then tho

requirements of 40 CFR 51.180) shall

apply to the source or modification as

though-construction had not yet

commenced-on -the source or

modification.

Consolidated Permit Regulations

6.40 CFR Part 124 is amended as

follows:

a. 40 CFR 124.3(b) Is deleted and

reserved as follows:

§ 124.3 Application for apernilt.

(b) [Reserved]

§ 124.5 [Amended]

b. 40 CFR 124.5(g)(2) is Tevisedus

follows:

[2) PSDpermits may be terminated

only'byxescission under § 52.21[w) or

by automatic expiration under § 52.21(r).

Applications for rescission shall be

processed under § 52.21(w) and are not

subject ,to this Part.

§ 124.42 [Amended]

,c.2The first sentence of 40 CER

124.42(b) is amended by substituting

"submitted" for "requested."

[FR Doc 80-23780 Filed 94-M. M5 aml

BILLING CODE 6560-01-M
Thursday

August 7, 1980

= a

- =

- = Part IV

Federal Trade

Commission

Sale of Used Motor Vehicles;

and Other Regulation

Disclosure
Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Proposed Rules

FEDERAL TRADE COMMISSION

16 CFR Part 455

Sale of Used Motor Vehicles;

Disclosure and Other Regulation

AGENCY: Federal Trade Commission.

ACTION: Proposed rule.

SUMMARY: On May 16,1980, the Federal

Trade Commission tentatively adopted

the proposed Trade Regulation Rule

concerning the Sale of Used Motor

Vehicles. The proposed Rule would

requ*e dealers to post a window sticker

("Buyers Guide") on used cars offered

for sale to consumers. The window

sticker would explain to consumers that

spoken promises may not be

enforceable, and that consumers should

ask that all promises be put in writing.

The sticker would also list 14 systems of

the car (for example, "frame and body". "engine", "transmission and drive

shaft".) Dealers would be rejuired to

clieck off the condition of each of these

systems as "OK", "Not OK" or "We

Don't Know". Additionally, the sticker

would inform consumers whether or not .a warranty-or service contract was

offered with the car, and how the

warranty, service contract, or the lack of

such protection affected the consumer's

right to have the dealer make repairs on

the car after sale.

An earlier version of the proposal

would have required dealers to inspect

all used cars that they offered for sale

and to report the inspection results on

the sticker. The Commission has

determined not to adopt a Rule

mandating dealers o -inspect all

vehicles. The proposed Rule as

tentatively adopted would not Tequire

dealers to inspect all used cars prior to

sale, but would require dealers who do

not inspect to notify consumers that

they have not done so by checking "We

Don't Know" on the window sticker.

Additionally, dealers would have to

disclose all known defects, whether or

not they inspect the vehicles.

The proposed Rule has been revised

in Section 455.1(a) to include a listing of

the acts or practices in the sale of used

motor vehicles which are unfair or

deceptive in order that the Rule may

"define with specificity" the illegal

practices in a manner that complies with

the decision in Katharine Gibbs, Inc. -v.

F.T.C., 612 F.2d 658 (2nd Cir. 1979).

Before the Commission promulgates the

final Rule, it will determine whether

compliance with § § 455.2-455.7 of the

Rule constitutes full compliance with the

Rule.

The Commission has determined not

to require'wiitten disclosures

concerning repair cost estimates on the

window sticker umless the dealerhas

chosen to make such estimates to the

consumer, and has also determined not

to require disclosure of whether a

vehicle has ever been declared a total

insurance loss. These provisions had

been included in an earlier version of

the proposed Rule.

'-DATES: Comments will be accepted

through October 7, 1980.

ADDRESS: Send comments to Secretary,

'Federal Trade Commission, 6th Street.

and Pennsylvania Avenue, NW., " Washington, D.C. 20580. Submissions

should be labeled "Sale of Used Motor

Vehicles."

FOR FURTHER INFORMATION CONTACT.

Michael A. Katz or Wallace W.Lovejoy,

Federal Trade Commission, 6th and

Pennsylvania Ave. NW., Washington. D.C. 20580, (202) 523-1670.

Section A. Invitation to Comment

The Commission believes that this

ruleniaking has provided interested

persons full opportunity to make

submissions andpresentations on all

issues relevant to the tentatively adopted proposed rule.'(41 FR 1089;

10233; 20896; 26032; 39337, January 6;

March 10; May 21; June 24; September 15,1976.)

The Commission also believes that the

question of whether the remedy selected

is reasonably related to the violations

found to exist is a matter largely within

the Commission's expertise, subject to

judicial review. However, the

Commission has decided in its

1discretion, and pursuant to § 1.14(a) of

its Rules of Practice, that it would'

benefit from additional written

comments on certain remedial and

drafting issues.

Comments are sought on whether the

proposed Rule is likely to prevent, - diminish the incidence of, or reduce the

injury to consumers from the unfair or

deceptive acts or practices in the sale of

used motorvehicles listed in § 455.1(a) of the Rule. Comments on the format of

the window sticker and comments

identifying drafting errors are also

sought. Comments on issues other than

these remedial and drafting issues will

not be considered. Written comments

will be accepted through October 7,

1980. The Commission does notintend

to conduct informal hearings or to

permit rebuttal submissions on these

issues.

Following the close of the comment

period, the Commission will determine

whether revisions should be made in the

proposed Rule, including the window

sticker. An effective date, that provides

for a period of congressional review as

required by Section 21 of the Federal

Trade Commission Improvements Act of

1980, will be announced when the

Commission promulgates a final Rule.

Section B. Questions

Interested persons are urged to submit

comments on the following questions.

Although the proposed Rule (including the window sticker) is drafted in

specific language, the Commission

retains its authority to promulgate a

final Rule in ways suggested by the

responses to these questions and based

on the rulemaking record. Comments

should indicate by number whicl

question(s) are being addressed.

Questions: 1. Is the "Buyers Guide"

likely to reduce the incidence of oral

misrepresentations by dealers about the

mechanical condition of or warranty

coverage offered in connection with the

sale of used cars? For example, will

dealers be less likely than at present to

-make oral misrepresentations about the

mechanical condition of the systems of a

used car if the "We Don't Know" box Is

checked? Will the disclosure of

warranty terms on the "Buyers Guide"

make it less likely than at present that

dealers will orally misrepresent the

nature and extent of warranty coverage offered? For what reasons?

2. Whatare the incentives for dealers

to mark "OK", "Not OK", or "We Don't

Know"? If some dealers mark the

disclosure form "OK," will that put competitive pressure on other dealers to

inspect and offer "OK" vehicles as well?

3. When a vehicle's systems are

marked "We Don't Know" or "Not OK"

on the "Buyers Guide", will buyers be

more cautious than at present about

relying on oral promises by a dealer that

a vehicle is in good mechanical

condition? Will it be difficult or easy for

dealers to explain away thd fact that a

vehicle's system is marked "We Don't

Know", for example, by stating that they

are saving buyers the cost of the

inspection? Will buyers believe that a

used car marked "OK" is in better

condition than a used car marked "We

Don't Know"? Will buyers be more or

less likely than at present to demand

that a dealer perform an Inspection or to

independently arrange for an inspection if there is a "Buyers Guide" posted on

which "We Don't Know" has been

marked? Will buyers be less likely than

at present to rely on oral promises by a

dealer to repair defects after sale If the

"No Warranty-'As Is'" disclosure is

marked on the "Buyers Guide"? For

whatreasons?

I

52750
Federal Register / Vol. 45, No. 154 / Thursday. August 7, 1980 / Proposed Rules

4. Does the "Buyers Guide" make

clear and will buyers understand that

the "OK" disclosure is not a promise by

the dealer concerning future

performance but a description of the

condition of 14 vehicle systems at the

time of sale? How often will dealers

mistakenly mark a system "OK" that is,

in fact, "Not OK"? When this occurs,

will buyers be misled to their detriment?

If a dealer marks a system "OK" and the

system breaks down shortly after sale,

is the dealer more likely than at present

to pay the costs of repair? Will dealers

be able to avoid liability by claiming

that the system was "OK when it left

the lot? Will buyers be able to show that

a defect existed at the time of sale

because of the severity of the defect and

the short time span between sale and

discovery of the defect? Will it be more

difficult for buyers to show that the

defect existed at the time of sale when

the defect first manifests itself after

several months? If a dealer marks a

system "OK" and then refuses to pay

the cost of repair, is it more likely than

at present that the dealer will be sued

for breach of warranty by an injured

consumer or groups of consumers

(perhaps represented by legal aid or

public interest law groups)? Will it be

worthwhile for buyers to bring lawsuits,

perhaps in small claims courts, if only

$100 or $200 is at stake? Even if it is not

likely that a dealer will be sued, will an

"OK disclosure put a buyer in a

sufficiently better negotiating position

than at present so that a dealer will pay

for repairs that become necessary

shortly after sale without resort to the

courts? Will the "Buyers Guide" make it

more difficult than at present for a

consumer or groups of consumers to

succeed in litigation against a dealer

who sold a seriously defective car

marked "We Don't Know" or "No

Warranty---'As Is' "?

5. Would a "Buyers Guide" that

clearly discloses the meaning of "as is"

and also clearly discloses the terms of

any warranty that is offered, but does

not contain a mechanical condition

checklist, reduce the incidence of oral

misrepresentations by dealers about the

condition of used vehicles? Would such

a "Buyers Guide" reduce the incidence

of buyer reliance on oral promises by a

dealer that a vehicle is in good

condition? Would such a "Buyers

Guide" be more or less effective than

the proposed "Buyers Guide" in

reducing the incidence of oral

misrepresentations by dealers and in

reducing the incidence of buyer reliance

on oral promises concerning mechanical

condition by the dealer?

6. Does the "Buyers Guide" provide

information to buyers in a useful and

understandable manner? What revisions

in format or wording would improve its

ability to do so?

7. Are there any technical errors in the

wording of the Rule or "Buyers Guide"?

Section C

It is proposed to amend 16 CFR by

adding a new Part 455--Used Motor

Vehicle Trade Regulation Rule to read

as follows:

PART 455-USED MOTOR VEHICLE

TRADE REGULATION

Se.

455.1 General duties of a used vehicle

dealer; definitions.

455.2 Consumer sales-window form.

455.3 Window form.

455.4 Contrary statements.

455.5 Foreign languages.

455.6 Records.

455.7 Inspection standards.

455.8 Declaration of Commission Intent.

Authority- 38 Stat. 717, as amended (15

U.S.C. 41 et seq.)

§ 456.1 General duties of a used vehicle

dealer, definitions

(a) It is an unfair or deceptive act or

practice for any used vehicle dealer,

when that dealer sells or offers for sale

a used vehicle in or affecting commerce

as "commerce" is defined in the Federal

Trade Commission Act:

(1) To misrepresent the mechanical

condition of a used vehicle;

(2) To fail to disclose, prior to sale,

any material defect in mechanical

condition of the used vehicle known to

the dealer,

(3) To represent that a used vehicle, or

any system thereof, is free from material

defects in mechanical condition at the

time of sale unless the dealer had a

reasonable basis for such representation

at the time it is made;

(4] To fail to make available, prior to

sale, the terms of any express or implied

warranty offered in cdnnection with the

sale of a used vehicle;

(5) To misrepresent the terms of any

express or implied warranty offered in

connection with the sale of a used

vehicle;

(6) To fail to disclose, prior to sale,

that a used vehicle is sold without an

express or implied warranty.

(b) In order to prevent the unfair or

deceptive acts or practices listed in

paragraph (a) of this section, but

regardless of whether any such acts or

practices have been committed by an

individual used vehicle dealer, it is an

unfair or deceptive act or practice for

any used vehicle dealer to fail to comply

with § § 455.2 through 455.7 of this rule

when that dealer sells or offers for sale

a used vehicle in or affecting commerce

as "commerce" is defined in the Federal

Trade Commission Act.

(c) The following definitions shall

apply for purposes of this part:

(1) "Vehicle" means any motorized

vehicle, other than a motorcycle, with a

gross vehicle weight rating fGVWR) of

less than 8500 lbs., a curb weight of less

than 6000 lbs., and a frontal area of less

than 46 sq. ft.

(2) "Used Vehicle" means any vehicle

driven more than the limited use

necessary in moving or road testing a

new vehicle prior to delivery to a

consumer, but does not include any

vehicle sold only for scrap or parts (title

documents surrendered to the state and

a salvage certificate issued).

(3) "Dealer" means any person or

business which sells or offers for sale a

used vehicle after selling or offering for

sale five (5) or more used vehicles in the

previous twelve (12) month period, but

does not include a bank or financial

institution, a business selling a used

vehicle to an employee of that business,

or a lessor selling a leased vehicle to

that vehicle's lessee or an employee of

the lessee.

(4) "Consumer" means any person

who is not a used vehicle dealer.

(5) "Warranty" means any

undertaking in writing in connection

with the sale by a dealer of a used

vehicle to refund, iepair, replace,

maintain or take other action with

respect to such used vehicle and

provided at no extra charge beyond the

price of the used vehicle.

(6) "Service contract" means a

contract in writing for any period of time

or any specific mileage to refund, repair,

replace, maintain or take other action

with respect to a used vehicle and

provided at an extra charge beyond the

price of the used vehicle.

(7) "Repair insurance" means a

contract in writing for any period of time

or any specific mileage to refund, repair,

replace, maintain or take other action

with respect to a-used vehicle and which

is regulated in your state as the business

of insurance.

(8) "You" means any dealer, or any

agent or employee of a dealer, except

where the term appears on the window

form required by § 455.2(a).

§ 455.2 Consumer sales-window form.

(a) General duty. Before you offer a

used vehicle for sale to a consumer, you

must prepare, fill in as applicable and

display on that vehicle a used vehicle

"Buyers Guide" as required by this rule.

(1) Use a side window to display the

form so both sides of the form can be

read. with the title "Buyers Guide" to the

52751
52752 Federal Register / Vol. 45, No. 154 I Thursday, August 7, 1980 / Proposed Rules

outside. You may remove a form

temporarily from the window during any

test drive, but you must return it as soon

as the test drive is over.

(2) The capitalization, punctuation and

wording of all items, headings, and text

on the form must be exactly as required

by this Rule. The entire form must be

printed in 100% black ink on a white

stock no smaller than 10.5 inches high by

8.5 inches wide in the type styles, sizes

and format indicated.

BILNG CODE 6750-01-M
Federal Register / Vol. 45, No. 154 / Thursday, Auqust 7, 1980 / Proposed Rules

,2PI H.v w i,- 

BUYERSGUIDE

Spoken promises may be no good.Ask us to put all promises in writing.

DEALER NAME

SX HeNehe i- ADDRESS

14P1 Helvetcib -* Condition

12 tHOWtu* o OK NOT OK WE DON'T KNOW

El [ Frame & Bod El

El El Engine D

El El Transmission & Drive Shaft El

0l 0l Differential 0l

El El Cooling System El

El El Electrical System 0l

,2=t Ho ----. El El Fuel System El

El El Accessories []

El [] Brake System El

El El Steering System El

El 0] Suspension System El

El E Tires El

E] E] Wheels ]

El El Exhaust System 0

i ec8 el B -.-- Look at the back of this form forthe details of

our inspection.

12p1 Hent"alck90 -ehveic

VEHICLE MAKE

MODEL YEAR

Warranties

SEE FOR COMPLAINTS

4(-.-- H r es

MOOEL

VEHICLE ID NUMBER

No Warranty-OAs Is" ' 1 1

This means you will pay all costs to fix thkigs that

break after you buy. But we have to pay to fix --- 9;t w,,He'

things marked "OK" that are not OK on delivery.

FullILimited Warranty , t'z ams 

We will pay - % of the total repair bill for covered systems that break during the warranty. This

warranty adds to our responsibilites for htems <--9t p.l-.eea

marked "OK." State law "implied warranties"

may give you even nore rights. I

TI*SE S(,"EV:12AiE Cr.VuZr

Items Marked "OKI

If anything we've marked "OK" is not OK on

delivery, we have to fix it or give you back some money. If the problem's bad enough, you can make us take the car back. This is true whether

you buy with a warranty or "as is." You must tell

uswithin

4 -I Ore

Hade, er r -es

after delivery if something marked "OK" was not

OK

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Hate!is-4

Items Marked "Not OK" or

"We Don't Know"

You pay all the costs to fix things marked "We

Don't Know" or "Not OK," Here is what's wrong

with things marked "Not OK."

Additional Information

Important: The informatorion thts form ispartofanycontracttoy~islst'e Rcyc ,be!:o purchase (except for purposes of test-dving) is a violat on of federal law (t6 C FR 455)

4I-- 14 Ct a mam

52753
F754 Federal Resister / Vol. 45, No. 154 / Thursday, August 7, 1980 / Proposed Rules

1410 ca itacK -

9 1 He4eto+ ca

P1 Heta 

14

41 Heie~lcaJack

-Frame & Body Frame-apparent cracks, corrective welds, S or rusted through

Dogtracks-bent dr twisted frame

Inoperative doors

- Engine

Known or visible oil leakage, excluding

normal seepage

Cracked block or head

Belts missing or inoperable

Knocks or misses

Abnormal visible exhaust discharge

- Transmission & Drive Shaft

* Improper fluid level or visible leakage,

excluding normal seepage SCracked or damaged case, which is visible

Abnormal noise or vibration

Improper shifting or functioning in any gear - Manual clutch slips or chatters

Differential

Improper fluid level or visible leakage,

excluding normal seepage Cracked or damaged housing, which is

visible

Abnormal noise or vibration

-- Cooling System Improper fluid level or visible leakage

Leaky radiator - Improperly functioning water pump

Inadequate antifreeze strength for season of

j. year

_ Electrical System

S Improper battery fluid level or visible leakage of

- Battery fails to start engine

Improperly functioning alternator, generator.

or starter

-Fuel System Visible leakage

Broken Accessories

I Gauges or warning devices

Radio

Air conditioner

'Heater & defroster

Windows

Dash lights

BILMNC CONz 85-0-C

Brake System Failure warning light broken

Pedal not firm under pressure (DOT specs.)

Not enough pedal reserve (DOT sipecs.) Does not stop vehicle in straight line

(DOTspecs.)

Hoses damaged Drum or rotor too thin (mfgr. specs.)

Lining or pad thickness less than 1/32 inch

Power unit not operating or leaking

Structural or mechanical parts damaged

Steering System

Too much-free play at steering wheel

(DOTspecs.)

Free play in linkage more than 1/4 inch

Steering gear binds or jams

Front wheels aligned improperly (DOTspecs.)

Power unit belts cracked or slipping

Power unit fluid level improper

Suspension System

$all joint seals damaged Structural parts bent or damaged Stabilizer bar disconnected

Spring broken

Shock absorber mounting loose

Rubber bushings damaged or missing

Radius rod damaged or missing Shock absbrber leaking

Shock absorber functioning improperly

Tires

Tread depth less than 2/32 inch

Sizes mismatched

Visible damage

Wheels

Visible cracks, damage or repairs

Mounting bolts loose or missing

Exhaust System

Apparent leakage

Inspection procedures and "DOT

specs." are printed in Vol. 16 C.AR.

(Code of Federal Regulations)Part 455.

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R27.R4

If a system is marked "OK," we have

inspected it, and it doesn't have the problems

listed below:
Federal Register / Vol. 45, No. 154 / Thursday, August 7. 1980 1 Proposed Rules

When filling out the form, follow the

directions in paragraphs (b) through (g)

of this section and § 455.4.

(b) Warranties.-(1) No Warranty-

'As Is'"hmplied Warranties Only. If you

offer the vehicle "as is," mark the box

provided. If you offer the vehicle with

implied warranties only, substitute the

disclosure specified below, and mark

the box provided. If you first offer the

vehicle "as is" or with implied

warranties only but then sell it with a

warranty, cross out the "No Warranty-

'As Is"' or "Implied Warranties Only"

disclosure, and fill in the warranty terms

(2) Full/Limited Warranty. If you offer

the vehicle with a warranty, mark the

box provided and briefly describe the

warranty terms in the space provided.

This description must include the

following warranty information:

(i) Whether the warranty offered is

"Full" or "Limited." 1 Cross out the

inappropriate designation. (ii) Which of the systems are covered

(for example, "engine, transmission,

differential"-you cannot use shorthand,

such as "drive train," for covered

systems);

(iII) The duration (for example, "30

days or 1,000 miles, whichever occurs

first");

(iv) The percentage of the repair cost

paid by you (for example, "We will pay

100% of the total repair bill" or "We will

pay 60% of the total repair bill"); and

(v) If the warranty does not cover

parts and labor equally, you must

disclose this. Delete the line from the

form which reads "We pay -% of the

1

2X He.velcaB a k --- Service Contra

in accordance with paragraph (b)(2) of

this gection.

If your state limits or prohibits "as is"

sales of vehicles, that state law

overrides this part and this rule does not

give you the right to sell "as is." In such

states, the heading "No Warranty-'As

Is'" and the paragraph immediately

below it must be deleted from the form,

and the following heading and

paragraph must be substituted. If you

sell vehicles in states that permit "as is"

sales, but you choose to offer implied

warranties only, you must also use the

following disclosure instead of "No

Warranty-'As Is' ".

total repair bill" and substitute "We

will pay -% of the labor and -% of the

parts." Fill in the percentage of the cost

of parts and labor you will pay under

the warranty.

If you first offer the vehicle with a

warranty, but then sell It without one,

cross out the offered warranty and mark

either the "No Warranty-'As Is' "box

or the "Implied Warranties Only" box,

as appropriate.

(3) Service Contracts. If you make a

service contract available on the

vehicle, you must add thb following

heading and paragraph below the "Full/

Limited Warranty" disclosure and fill it

in as applicable.

I A "Full" warranty Is defined by the Federal

Minimum Standards for Warranty set forth in 1 104

of the Magnuson.Moss Warranty Act. 15 U.S.C.

§ 2304 (1975). The Magnuson.Moss Warranty Act

does not apply to vehicles manufactured before July

4,1975. Therefore, if you choose not to designate

"Full" or "Limited" for such cars, cross out both

designations, leaving only "Warranty".

A services contract is available from

for S extra. This service contract adds

to our responsibilities for Items marked

9pt Helvetica Black "'OKI' and to our responsibilities under any

warranty. If you buy a service contract,

state law "implied warranties" may give you

even more rights.

(c) Condtor-Inspections. You may.

inspect, at your option, any or all of the

vehicle systems listed on the front side

of the "Buyers Guide" form. You may

choose your own inspection procedure,

but that procedure must produce the

same results as the procedure set out in

j 455.7.

For each system listed on the "Buyers

Guide," you must mark either "OK,"

"Not OK," or "We Don't Know" as

explained in this section.

(1) "OK": If all parts of a system pass

your inspection you may mark that

system "OK" on the form. If you do not

inspect, you must not mark the system ''OK."

(2) "Not OK": If any part of the system

does not pass your inspection, and you

don't repair the problem, you must mark

the system "Not OK" on the form; you

must not mark the system"We Don't

Know." Also, you must mark a system

"Not OKI if you know it would fail an

inspection, even if you do not perform

an inspection. Use the space provided to

explain briefly the problem with each

system marked "Not OK." If you give an

estimate of the cost to repair the

problem, you must provide it in writing

on the form. If you repair all problems in

a system, you may mark the system

Examples of "Not OK" explanations:

(i) Sufficient: "Brake master cylinder

leaking." Insufficient: "Brakes need

work."

(ii) Sufficient- "Engine burns oil:'

Insufficient: "Engine bad."

(3) "We Don't Know": If you have not

inspected all parts of a system and do

not know that any part of the system

would fail an inspection you must mark

it "We Don't Know." If all parts of a

system pass your inspection, but you do

not wish to certify the condition of the

system to the buyer, you may mark the

system "We Don't Know."

You may limit how long the buyer has

to notify you about a problem with an

item marked "OK" by writing the

limitation in the spaces provided on the

window form. The limitation may be

defined by time and/or mileage. If you do not limit the period to notify, you

must insert the term "a reasonable time"

in the spaces provided. (d) Name andAddress. Put the name

and address of your dealership in the

12Pt Hfeve.Ca Black Implied Warranties Only

This means that we do not make any prom. ises to fix things that break after you buy. 9Pt Hele'aBack- *--.But, state law "implied warranties" may

give you some rights to have us fix things marked "OK" if they are not OK on delivery.

525

R27RR
Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Proposed Rules

space provided. If you do not have a

dealership, use the name and address of

your place of business (for example,

your service station) or your own name

and home address.

(e) Complaints. 'Put the name and

telephone number of the person who

will settle any complaints after sale in

the space provided. This person must

have full authority to negotiate and

settle complaints 'for you.

(f) Make, Model, Model Year, VIN.

Put the vehicle's name (for example,

"Chevrolet"), model (for example, "Vega"), model year, and Vehicle

Identification Number (VIN) in the

spaces provided.

(g) Additional Information. You may

include in the space provided -t the

bottom of'the form repair insurance

information or any other informatibn not

prohibited by this rule. Lines or text may

be preprinted on the form for this

information.

§ 455.3 Window form.

(a) Partof ContracL You must

incorporate the information on the

window form into the contract of sale

(sales agreement) for each used vehicle

you sell to a consumer by using the

following language in each consumer

contract of sale:

"The information yousee on the

window formfor this vehicle is part of

this contract. if any.thing in this contract

is different, the window form has the

correct information."

The capitalization, pimctuation and

wording -of thisnotice must appear

exactly asushown above. The motice

must be printed in 12 point-extraboldface type using Roman letters with

100% black ink.

(b) Copy to Buyer. Give the.buyer of a

used vehicle sold byyou the original of

the -window form displayed under

§ 455.2. If the original cannot be

removed from the window without

damage, give the buyer a second copy,

completed just like the-original.

§ 455.4 Contrary statements.

You may not make any statements,

oral or written, or do anything'which

takes away from or contradicts the

disclosures in § § 455.2 and 455.3. You

may still negotiate over warranty

coverage, as provided in § 455.2b) of this

part, as long as the final warranty terms

are identified in the contract of sale and

summarized on the copy of the window

form you give to the buyer.

§ 455.5 Foreign languages.

(a) General duty. If you conduct a sale

in a language other than English, the

window form required by § 455.2 and

the contract disclosures required by

§ 455.3 must be in that language. You

may display on a vehicle both an -

English language window form and

.foreign language translation(s) of that

form. Where possible, follow the layout

requirements of § § 455.2 and 455.3 (type,

type size, color and format) for foreign

language forms.

(b) Spanish language sales. Use the

following translation for Spanish

language sales:

BILLING-CODE 6750-01-M

I I

52756
Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Proposed Rules

GUld DEL COIMPRADORI 12r .c8-- Promesas verbales podrian resultar sin valor. Solicite hagamos todas

nuestras promesas por escrito.

1 DISTRIBUIDOR NOMBRE

8:4 He'Cr IN DIRECCION

PARAOUEJAS VERA

16EH:CULO MPARCA MOOELO 4 ax

0 ~NUMERO DE ID EUTFICAMIN I

Condici6n

No 12CA Helw c OK Esta OK No Sabemos

0 0 Chasis y Carroceria 0

E 0 Motor 0

E 0l Transmisi6n y Eje del motor 0

0 0 Diferencial 0

0l 0 Sistema de Enfriamiento 0

El El Sistema Eldctrico 0 12 ,, Vew"-- .t. El El Sistema de Combustible 0

El 0 Accessorios 0

El El Sistema de Frenos 0

El El Sistema de Conducci6n 0

El El Sistema ' a Suspensi6n E

El El Liantas El

l 0 Ruedas El

El El Sistema de Escape

9V w.ea8oI.-.o Vea e el reverso de ista forma los detalles de

nuestra Inspecci6n.

12 tX Hel " B Articulos Marcados "O.K."

Si algun articulo marcado -O.K.- resulta defectuoso a la entrega nosotros tenemos que repararlo o devolverle parte de su dinero. Si el defecto es grave, usted

9n ,-t .-.---- ene derecho a devolvernos of vehiculo Esto apica

independientemente de st usted compr6 el vehiculo

con garantia o no. Debe notificamos dentro do un tdrmino de despu-s

de la entrega si algo marcado O.K. no K esta.

,2,t He,, , -- Articulos Marcados "No Esta

I O.K." o "No Sabemos"

Usted paga el costo de reparaci6n do articukos mar- 9pt k,,a - cados-No esta O.K. -oNo sabemos Acontinuac.6n

se encuentra el defecto.

Garantias 4.- 14C 0 He4.4ea ILk

I

Sin Garantla ("Tal como estat ) - ,#ca.j,1

Usled pagark Ia reparacfn do psezas o sistemas que

so datun despuos de usted haber compcado of vehiculo Nosotros tendromos que pagar el costo de Ia ' 90-- ,'

reparacon do aquollos amtcutos quo no so encuentreni

0 K- a ta entrega j

Garantia Completa/Parcial 4*- 12 at bl.NowxC22'.

Nosotros pagarenos . de La cuenta total de

reparacion por esos sisternas inc!udos en la garanta 4-- ,

so so qu*Wen Esta garantw aumenla nuestra I

responsabllldad por articulos marados'O.K.". AScr

Las gawantas tmplctas- de fa ley estatal podtan --- ,,C-' 

reconocerle hasta mas derechos que esla garama.

4 6C c

TER4-.J'. LAOAA

Inf6rmacion Adicional

4-1 S

4 -6C I$etca

I _

1PC ec----pI mportante: La anformaciOn en Osla lna es partedo cua

Out HOW4 - ii esta etiquota antes do Ia comrpra dos Osto vehculo (excepto

reglamnentao6n federal (16 C.FR. 45S)

gqu*rccnta.od ce pra.erades.e eh-Uo Rem:onde

para ccn:;ccn de prnea) corxs.?ue una vi n a [a

52757

I
Federal Register / Vol. 45, No. 154 / Thursday, August 7. 1980 / Proposed Rules

I

tO Pl Helvelpca Mlack 1

Todo systema marcado "O.K." que hemos

inspectado y no tiene los defectos enumerados

a continuaci6n

14 Hetvetca 0 laek

10 P4 H&efi ta14PI HeVel a Black10 H01 H2C222& -

14pt Helvetica Black

UPI HelcaBack

$pt HH'4MetC

14 Ot Hclvetza Black

101O2 He2veica

140 Helvelca BJack

2002 Hel2e ja

242 H0110a1 Black

100 H0 2.a e 

14 Pt Helvelc8 Black

1022 HeIMe22Ca

12pt Heve2 ,C BoM

- Chasis y Carroceria

I Chasis-grietas, soldaduras correctivas, oxidado,

----- chasis doblado o torcido.

1 Puertasdaladas.

- Motor

Escape de aceite/visible, excluyendo gasto por

uso normal. K Bloque o cabezal quebrado o trizado.

Correas dafladas o inoperantes.

Fallo o pistoneo.

Descarga excesiva de humo por sistema de

escape.

-- Transmisi6n y Eje del Motor

Nivel de liquido insuficiente o escape visible,

excluyendo filtracimn normal.

o 'Cubierta aboyada o agrietada.

Vibraci6n o ruidoanormal.

Funcionamiento inadecuado o dificultad al

cambiar develocidad.

Embriague mecanico patina o vibVa.

Diferencial

I Nivel de liquido insuficiente o escape visible.

- excluyendo filtraci6n normal.

Aboyadura o grieta visible en la cubierta.

Vibraci~n o ruido anormal.

Sistema de Enfiamiento Sellos de conexi6n de bola defectuosos.

Nivel de liquido insuficiente a escape visible. Piezas estructtrales dobladas o daradas

Escape en el radiador. Barra de estabilizaci6n desconectada.

Bomba del agua defectuosa. Resorte roto.

Liquido anti-congelante con concentraci~n Amortiguador desconectado.

inadecuada para [a estaci~n del afo. Gomas del amortiguador darladas.

Bujes de goma datlado o no Io tiene. Sistema Electrico Escape de liquido en el amortiguador.

Nivel de lic'uido o escape visible en el Malfuncionamiento del amortiguador.

acumulador. Mantas

Acumulador incapaz de arrancar el motor.

Alternador. generador o motor arrancador Profundidad del caucho menor de 2/32 de

defectuoso. pulgada.

Tamafio de Ilantas diferentes. Sistema de Combustible "Daeio visible

Escape visible de combustible. Ruedas

Accesorios Daniados Trizaduras visibles, darlos o reparaciones.

Relojes o instrumentos de advertencia Pernos de montaje sueltos o que faltan.

Radio Sistema de Escape

Aire acondicionado

Calentador y descarchador Escapes visibles.

Ventanas

Luces de ta consola

Los procedimientos de inspecci6n y las especificaciones del departambento de

transportaci6n estan publicadas en el volumen 16 C.ER. (C6digo de Reglamentos Federales) Parte 455. ,

t1VWI~Q'OOOf's75o~o1c,'

5275

Sistema de Frenos

Luz de advertencia dafadas.

Pedal no firme bajo presin. (Especificacidnes

Depto. Transportaci6n)

Juego insuficiente en el pedal. (Especificaciones

Depto. Transportaci6n)

No detiene vehiculo en linea recta.

Mangas dafadas.

Tamboro rotor muy delgados. (Especificaciones

del fabricante)

Espesor de bandas de frenos menor de 1/32 de

'pulgada. .

Unidad motriz dafada o tiene escape.

-Piezas dartadas. -

Sistema de Direcci6n

Juego excesivo en la guia. (Especificaciones

Depto. Transportaci6n)

Juego en [a conecci6n en exceso de V4 de

pulgada.

Guia se tranca.

Ruedas delanteras desalineadas.

(Especificaciones Depto. Transportacin)

Correasagrietadas o zafadas.

Nivel de liquido del recipiente al vacio

.inadequado.

Sistema de Suspensi6n 4

4 14tA He$/onca0ac*

.Q-4PI HV04&f2ICk

I I [

i

I

I

I

t

$

!

I

I

it. 24 Heo2(,0GI

4 1--4pt "22ol4SM0!~k

q*-,Opt Ht~cf~a

pt40 WH01-tCJa W22
Federal Register / Vol. 45. No. 154 / Thursday, August 7, 1980 / Proposed Rules

§ 455.6 Records. -

When you sell. a used vehicle, keep a

fully filled-in, legible copy of each

document that you used or received

under § § 455.2,455.3, and 455.5. Keep

these copies for three years from the

date of sale.

§ 455.7 Inspection standards.

To inspect any or all of the vehicle

systems for § 455.2(c), use the following

inspection procedure or any other

procedure-that would produce the same

results. For non-safety systems

(paragraphs (a}-{i) of this section), the

inspection procedure includes a test

drive, an examination under the chassis,

an examination under the hood. and a

walk-around inspection. For safety

systems (paragraphs (j)-{n) of this

section), additional inspection

procedures accompany each system.

When deciding whether an item is "OK"

or"Not OK," treat all vehicles the szrme;

do not use lower standards for older or

cheaper vehicles.

(a) Frame and body. (1) Frameapparent cracks, corrective welds or

rusted through;

(2) Dogtracks-bent or twisted frame;

(3) Inoperative doors.

(b) Engine. (1) Known or visible oil

leakage, excluding normal seepage;

(2) Cracked block or head;

(3) Belts missing or inoperable;

(4) Knocks or misses;

(5) Abnormal visible exhaust

discharge.

(c) Transmission and drive shaft. (1)

Improper fluid leyel or visible leakage,

excluding normal seepage;

(2) Cracked or damaged case, which is

visible;

(3) Abnormal noise or vibration;

(4) Improper shifting or functioning in

any gear;,

(5] Manual clutch slips or chatters.

(d) Differential. (1) Improper fluid

level or visible leakage, excluding

normal seepage;

(2) Cracked or damaged housing,

which is visible;

(3) Abnormal noise or vibration.

(e) Cooling system. (1) Improper fluid

level or visible leakage;

(2) Leaky radiator;,

(3) Improperly functioning water

pump;

(4) Inadequate antifreeze strength for

season of year.

(f) Electrical system. (1) Improper

fluid level or visible leakage of battery;

(2] Battery fails to start engine;

(3) Improperly functioning alternator,

generator, or starter.

(g) Fuel system. (1) Visible leakage.

(h) Broken accessories. (1) Guages or

warning devices;

(2) Radio;

(3) Air conditioner

(4) Heater and defroster

(5) Windbws;

(6) Dash lights.

(i) Exhaust system. (1) Apparent

leakage.

(j) Brake system.-Ceneral procedure.

Use 25 lbs. of force to test powerassisted or full-power brakes (50 lbs. for

non-power brakes) unless a different

force is given below.

(1) Failure warning light (if original

equipment). Procedure: Apply the

parking brake and turn the ignition to "start" or test by other means set by the

manufacturer to make sure the light

works.

(2) Brake system integrity. Procedure:

With the engine running on vehicles

equipped with power brake systems,

and the ignition turned to "on" In other

vehicles, apply a force of 125 pounds to

the brake pedal and hold for 10 seconds.

Make sure that there is no decrease in

pedal height and that the failure lamp

does not light. (3) Brake pedal reserve. Procedure:

Depress the brake pedal fully (with the

engine running in vehicles equipped

with power assisted brakes). The pedal

travel must not be more than 80 percent

of the distance from the pedal's free

position to the floorboard or pedal stop.

This test is not needed for full power

(central hydraulic) brake systems or for

vehicles with brake systems designed to

work with more than 80 percent of pedal

travel.

(4) Service brake performance.

Procedure: With the tire pressure at the

manufacturer's specification, test by

either procedure (a) or (b):

(i) Roller-type or drive-on platform

procedure: Using either a drive-on

platform or a roller-type brake analyzer

which can measure equalization, make

sure that the forces applied by the front

brakes are within 20 percent of each

other and that the forces applied by the

rear brakes are within 20 percent of

each other. Follow the directions of the

maker of the test equipment.

(ii) Road test procedure: Drive on a

road that is level (not more than one

percent grade), dry, smooth, hardsurfaced and free from loose material,

oil or grease. Make sure that the vehicle

stops from 20 miles per hour within 25

feet staying in a 12 foot-wide lane.

(5) Brake hoses and assemblies.

Procedure: Look at all the brake hoses to

make sure that the hoses do not touch

the vehicle's body or chassis and that

the hoses are not cracked, chafed or

flattened. Do not count a protective

device like a "rub ring" as part of the

hose or tubing. Examine the front brake

hoses through all wheel positions from

full left to right.

(6) Disc and drum condition.

Procedure: Remove at least one front

and one rear wheel and look (measure

as needed) to see if the drum diameter

and rotor thickness are within the

manufacturer's specifications. (Vehicles

built after January 1,1971 and some

earlier models have drums embossed

with the maximum safe drum diameter

dimension and the rotors embossed with

the minimum safe rotor thickness

dimension.]

(7) Fiction materials. Procedure: With

at least one front and one rear wheel

removed, look to see if the brake linings

or pads have cracks or breaks that

extend to rivet holes, except minor

cracks that do not impair attachment.

See if the drum brake linings are

securely attached to the brake shoes

and the -disc brake pads are securely

attached to the shoe plate. Measure to

see if there is at least one thirty-secohd

of an inch of lining left. (Withriveted

linings, measure the thickness of the

lining over the rivet heads. With bonded

linings or pads, measure the lining

thickness over the shoe surface at the

thinnest point on the lining or pad.)

(8) Brake structural andmechanical

parts. Procedure: With at least one front

and one rear wheel removed, look to see

if backing plates and caliper assemblies

are deformed or cracked; whether

system parts are broken, misaligned.

missing, binding or severely worn; and if

automatic adjusters and other parts are

assembled and installed correctly.

(9) Power brake unit.

Procedure: With the engine running,

look and listen to made sure vacuum

hoses are not collapsed, scraped,

broken, improperly mounted or leaking

audibly. Stop the engine and apply the

service brakes several times to destroy

vacuum in the system. Depress the

brake pedal with 25 pounds of force and

start the engine while maintaining that

force. The power assist is defective if

the brake pedal does not fall slightly

when the engine starts. (This testis not

needed for vehicles with full power

brake systems. The service brake

performance test is enough for those

vehicles.)

(k) Steering system.-{) System play.

Procedure: With the engine on and the

wheels in the straight ahead position,

turn the steering wheel in one direction

until there is a slight movement of a

front wheeL Turn the steering wheel the

other way until the same wheel again

moves slightly. If you had to turn the

steering wheel more than the distance

shown in Table L there is excessive lash

or free play in the steering system.

52759
Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Proposed Rules

Table I.-Steeling System Free Play Values

[In Inches]

Steering wheel diamneter Lash

16 or es... ""2 18 ............................... 2%

20 . ....... ............... 2 22 . ....... 2%

(2) Linkage play.

Procedure: Elevate the front end of the

vehicle to load the ball joints. Insure

that the wheel bearings are correctly

adjusted. Grasp the front and rear of a

tire and attempt to turn the tire and

wheel assembly left and right. If the free

movement at the front or rear tread of

the tire exceeds one-quarter inch there

is excessive steering linkage play.

(3) Free turning.

(5) Power steering system. Procedure:

Examine the fluid reservoir to see that it

has enough fluid. Check to see that the

pump belts are not cracked or slipping.

(1) Suspension system.-(1)

Suspension. Procedure: Examine the

front and rear suspension parts to make.

sure that the ball joint seals are not cut

or cracked; the structural parts are not

bent or damaged; the stabilizer bars are

connected; the springs are not broken or

extended by spacers; the shock absorber

mountings, shackles and U-bolts are

securely attached; rubber bushings are

not cracked, extruded out from or

missing from suspension joints; and the

radius rods are not missing or damaged. (2) Shock absorber. Procedure:'Look

at the shock absorbers to make sure

their seals are not leaking (oil on the

housing leaking from within). Make sure

the vehicle does not rock freely more

than two cycles by pushing down on one

end of the vehicle, releasing and

counting the cycles. Repeat at the other

end of the vehicle. Test on a level

surface.

(m) Tires.--(1) Tread depth.

Procedure: make sure that the tread on

each tire is at least two thirty-seconds of

an inch deep. On passenger cars look for

exposed tread depth indicators (check

two adjacent major grooves at three

points about equally spaced around the

tire). On other vehicles, you may have to

measure tread depth with a tread gauge.

Procedure: Turning the steering wheel

through the limit of travel in both

directions. Feel for binding or jamming

in the steering gear mechanisms. (The

wheel should turn freely.) (4) Alignment.

Procedure: Toe-in or toe-out must not*

be greater than 1.5 times the values

listed in the vehicle manufacturer's

service specification for alignment

settings as measured by a bar-type scuff

gauge or other toe-in measuring device.

Values to convert toe-in readings in

inches to scuff gauge readings in feet/

mile side-slip for different wheel sizes

are provided in Table II: Tire diameters

used in computing scuff gauge readings

are based on the average maximum tire

dimensions of grown tires in service for

typical wheel and tire assemblies.

(2) Type. Procedure: Look to make

sure that the tires on each axle are

matched in tire size designation,

construction and profile, and are not a

major deviation in size from the

manufacturer's recommendation. (Given

on a glove box sign in 1968 or later

passenger cars.)

(3) General condition. Procedure: Look

to make sure that the tires are free from

clunking, bumps, knots, or bulges

evidencing cord, ply, or tread separation

".from the casing or other adjacent

materials.

(4) Damage. Procedure: Look at the

tires and use a blunt instrument (to " probe cuts or abrasions) to make sure

that the tire cords or belting materials

are not exposed.

(n) Wheels.-i) Integrity. Procedure:

Look at the wheels (tire rim, wheel disc,

and spider) to make sure that there are

no visible cracks, elongated bolt holes,'

or signs of repair welding.

(2) Deformation. Procedure: Use a

runout gauge and stand to make sure

that the lateral and radial runout of each

rim bead area is not more than oneeighth of an inch .of total indicated

runrout. (Measure each wheel through a

full rotation.)

"(3) Mounting. Procedure: Make sure

all wheel nuts and bolts are in place and

tight.

§ 455.8 Declaration of Commission Intent

(a) This rule is intended to prevent the

unfair or deceptive acts or practices set

forth in 455.1(a). By requiring the

disclosures of this part, it is not the

Commission's intent to preempt state or

local laws, rules or regulations which

relate to vehicle condition or warranties

and which provide greater protection to

the consumer than this part provides. It

is also not the Commission's Intent to

preempt by this part other state or local

laws, rules or regulations which govern

aspects of used vehicle sales other than

those regulated by this part.

(b) If, upon application of an

appropriate state or local governmental

agency, the Commission determines that

any requirement of such state or local

government (1) affords protection to

consumers greater than the

requirements of this rule and (2) does

not unduly burden int6rstate commerce,

then that requirement shall be

applicable to the extent specified In the

Commission!s determination so long as

the state or local goveuiment

administers and enforces effectively any

such greater requirement.

(c) Applications for exemption should

be directed to the Secretary of the

Commission.'When appropriate,

proceedings will be commenced in order

to make a determination and will be

conducted in accordance with Subpart C

of Part I of the Commission's Rules of

Practice.

(d) These Rules, requirements and

declaration of intent and their

application are each separate and

severable.

By direction of the Commission.

Carol M. Thomas,

Secretary.

[FR Doc. 80-23903 Filed 8-6-80. 8:45 am]

BILLING CODE 6750-01-M

Table II.--Toe-in settings from vehicle.MFR's Servce SpecfIcabons

Nominal Readings In feet per mile srdeslp

,Wheel size tire

(included) diameter

(inches) Y,@" 1" W Wsi" " %" 7A" . " 9,is"

13 25.2 13.1 26.2 39.3 62.4 65.5 78.6 91.7 104.8 117.9 14 . 26.4 12.5 25.0 37.5 50.0 625 75.0 87.5 100.0 112.5 15 .......... 28.5 11.5 23.0 34.5 46.0 57.6 69.0 80.5 92.0 103.5 16......... 35.6 9.3 18.6 27.9 37.2 46.5 55.8 65.1 74.4 83.7

52760 '
Thursday

August 7, 1980

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Part V

Department of

Housing and Urban

Development

Office of the Assistant Secretary for

Community Planning and Development

Urban Homesteading Program;

Implementation of Section 106 of the

Housing and Community Development

Amendments of 1979
Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

Office of the Assistant Secretary for

Community Planning and

Development

24 CFR Part 590

[Docket No. R-80-854]

Urban Homesteading Program;

Implementation of Section 106 of the

Housing and Community Development

Amendments of 1979

AGENCY: Department of Housing-and

Urban Development/Office of the

Assistant Secretary for Community

Planning and Development.

ACTION: Interim rule.

SUMMARY: This interim rule would

implement Section 106 of the Housing

and Community Development

Amendments of 1979 (Pub. L. 96-153)

and the related Section 102(a) of the

Housing and Community Development

Amendments of 1978, (Pub. L. 95-557).

Section 106 authorized HUD to use

funds authorized by Section 810 of the

Housing and Community Development

Act of 1974 to reimburse the

Administrator of Veterans' Affairs and

the Secretary of Agriculture for

properties conveyed to a unit of general

local government, State or agency for

use in a HUD-approved.local urban

homesteading program.

Section 102(a) amends Section 810(f)

of the Housing and Commudity

Development Act of 1974 to allow for

the provision of lists of properties by the

Administrator of Veterans' Affairs.

DATES: Effective date: September

15, 1980.

Comment due date: October 6, 1980.

ADDRESS: Comments should be

addressed to: Rules Docket Clerk, Room

5218, Department of Housing and Urban

Development, Office of General

Consel, 451 7th Street SW.,

Washington, D.C. 20410. Please refer to

the docket number shown in the heading

of this interim rule.

"FOR FURTHER INFORMATIONCONTACT:

Lenore R. Siegelman, Urban

Homesteading Division, Office of Urban

Rehabilitation and Community

Reinvestment, Room 7176, Department

of Housing and Urban Development, 451

7th Street SW., Washington, D.C. 20410,

Telephone: (202) 755-6935.

SUPPLEMENTARY INFORMATION: This

interim rule is needed because earlier

Urban Homesteading Program

legislation limited the reimbursement for

federally-owned properties conveyed for

use in such local homesteading

programs to those held by HUD. Current

legislation authorizes that

reimbursement. HUD anticipates that

appropriations currently available for

reimbursement to the Federal Housing

Administration Funds will have been

authorized to reimburse the Department

of Agriculture and the Veterans

Administration as progosed in the

pending 1981 Appropriation Bill

presently under Congressional

consideration.'

A Finding of No Significant Impact

respecting the National Environmental

Policy Act of 1969 (24 CFR Part 590) has

been made in accordance with HUD

procedures. A copy of this Finding is

available for public inspectiorf during

regular business hours in the Office bf

the Rules Docket Clerk at the above

address. This interim rule was not listed

in the Department'§ semi-annual agenda

of significant regulations published in

the Federal Register on February .5, 1980.

Accordingly, Part 590 is amended to

read as follows:

PART 590-URBAN HOMESTEADING

Sec.

590.1 Scope of regulation.

590.3 Purpose of program. 590.5 Definitions.

590.7 Program requirements.

590.9 Listing of HUD-owned and VA-owned

properties.

590.11 Applications.

590.13 HUD Review ard Approval of

Application.

590.15 Urban Homesteading Agreement. 590.17 Transfer of HUD-Owned Properties.

590.18 Reimbursement to the Department of

Agriculture and to the Veterans

Administration.

590.19' Implementing Funds.

590.21 Reduction of Funds.

590.23 Program Close Out. [Reserved]

590.25 Retention of Records.

590.27 Audit.

590.29 Applicable Federal Laws and

Regulations. 590.31 HUD Review of Local Urban

Homesteading Agency's Performance.

590.33 Corrective and Remedial Action.

590.35 Evaluation by HUD.

Authority: Sec. 810 of the Housing and

Community Development Act of 1974, Pub. L.

93-383, as amended, 88 Stat. 633 (1Z U.S.C.

1706e)

§ 590.1 Scope of regulation.

(a) The policies and procedures in this

regulation are applicable to the approval

of urban homesteading programs

authorized by Section 810 of the

Housing and Community Development'

Act of 1974, as amended.

(b) This part includes the functions

and responsibilities of HUD and units of

general local government and States or

a designated public agency of a State or

unit of general local government with

regard to program requirements:

application requirements; submission of

applications; review and approval of

applications; transfer of HUD-owned

properties; property disposition

assistance; HUD program evaluation;

performance review; reimbursement by

HUD to the Department of Agriculture

and to the Veterans Administfation for

properties used in the urban

homesteading program and other

applicable Federal laws and regulations.

§ 590.3 Purpose of program.

The purpose of the urban homesteading program is to utilize existing

housing stock to provide

homeownership, thereby encouraging

public and private investment in

selected neighborhoods and assisting In

their preservation and revitalization,

The program will provide for the

transfer without payment to States. or

units of general local government or

their designated public agencies

Federally-owned, unoccupied one- to

four-family residences requested by

such unit, State or agency for use in an

approved urban homesteading program.

Reservations under the Section 312

Rehabilitation Loan Program are

available to finance rehabilitation of

single family or multifamily homestead

properties, as well as other properties,

within the urban homesteading

neighborhoods.

§ 590.5 Definitions.

(a) "Act" means Title VIII, Section 810

of the Housing and Community

Development Act of 1974, as amended.

(b] "Agriculture'! means the U.S.

Department of Agriculture.

(c) "Agriculture- or VA-owned

property" means property to which the

Secretary of Agriculture or the

Administrator of Veterans Affairs holds

title.

(d) "Applicant" means any State or

unit of general local government that

applies to carry out an urban

homesteading program under these

regulations.

(e) "Homesteader" means an

individual or family who participates in

a local urban homesteading program by

accepting a property pursuant to the

requirements of § 590.7. For locally

owned property, it may also mean

cooperatives and condominium

associations.

(f) "HUD-owned property" means

property to which the Secretary of HUD

holds title.

(g) "Locally-owned property" means

any real biroperty which is improved

with a one- to four-family residence or a

multifamily residence not obtained from

52762
Federal Register / Vol. 45, No. 154 / Thursday. August 7. 1980 / Rules and Regulations

the Department of Housing and Urban

Development or from the Department of

Agriculture or the Veterans

Administration and to which the local

urban homesteading agency holds title.

(h) "Local Urban Homesteading

Agency" means a State, a unit of general

local government, or a public agency

designated by a unit of general local

government or a State, which must have

the authority to accept the transfer,

without payment, of Federally-owned

property. (i] "Local Urban Homesteading

Program" means the operating

procedures, and requirements developed

by a local urban homesteading agency

in accordance with the provisions of

§ 590.7.

(j) "Neighborhood Strategy Area

(NSA)" means an area selected by a

recipient of Community Development

Block Grant (CDBG) entitlement funds

and designated in its Community

Development and Housing Plan for a

program of concentrated community

development activities which is defined

by the Community Development Block

Grant Regulations, Title 24, Chapter V,

Part 570, Subpart D, Section 570.301(c).

(k) Private non-profit entity,

neighborhood-based nonprofit

organization, Small Business Investment

Company and local development

corporation mean:

(1] A private nonprofit entity which is

any organization, corporation, or

association, duly organized to promote

and undertake community development

activities on a not-for-profit basis;

(2) A neighborhood-based nonprofit

organization which is an association or

corporation, duly organized to promote

and undertake community development

activities on a not-for-profit basis within

a neighborhood as defined pursuant to

this Part. An organization is considered

to be neighborhood-based if the majority

of either its membership, clientele, or

governing body are residents of the

neighborhood where activities assisted

under this Part are to be carried out;

(3) A Small Business Investment

Company (SBIC) which is an entity

organized pursuant to section 301(d) of

the Small Business Investment Act of

1958 (15 U.S.C. 681(d)), including those

which are profit making; and

(4) A local development corporation

which is an entity organized pursuant to

Title VII of the Headstart, Economic

Opportunity, and Community

Partnership Act of 1974 (42 U.S.C. 2981);

an entity eligible for assistance under

section 50Z of the Small Business

Investment Act of 1958 (15 U.S.C. 696), a

State development entity eligible for

assistance under section 501 of the

Small Business Investment Act of 1958

(15 U.S.C. 695). or other similar entity

incorporated pursuant to Federal, State.

or local law.

(1) "Secretary" means the Secretary of

Housing and Urban Development or any

person to whom the Secretary has

delegated authority for the urban

homesteading program.

(in) "Federally-owned properly"

means any real property:

(1) Which is improved with a one- to

four-family residence;

(2) To which the Secretary, the

Secretary of Agriculture or the

Administrator of Veterans Affairs holds

Title;

(3) Which is not occupied.

(n) "Section 312 Rehabilitation Loan

Funds" means loan funds authorized by

Section 312 of the Housing Act of 1964,

as amended to finance the rehabilitation

of urban homesteaded property, as well

as other property within the designated

,urban homesteading neighborhood.

(o) "Section 810 Funds" means the

funds authorized under Title VIII,

Section 810 of the Housing and

Community Development Act of 1974, as

amended to reimburse the Department

of Housing and Urban Development's

housing loan and mortgage insurance

funds for the fair market value of HUDowned properties transferred to local

urban homesteading agencies, and to

reimburse the Department of Agriculture

and the Veterans Administration for

their properties transferred to the urban

homesteading agency in accordance

with 590.18.

(p) "State" means any State of the

United States, or any instrumentality

thereof approved by the Governor. and

the Commonwealth of Puerto Rico.

(q) "Unit of general local government"

means any city. county, town, township.

parish, village, or other general purpose

political subdivision of a State; Guam,

the Virgin Islands, and American

Samoa, or in a general purpose political

subdivision thereof: The District of

Columbia the Trust Territories of the

Pacific Islands; and Indian tribes, bands,

groups, and nations of the United States,

including Alaska Indians, Aleuts, and

Eskimos.

(r) "Unoccupied residential property"

means either a Federally-owned

property or a locally-owned property

that is vacant.

(s) "Urban homesteading

neighborhood" means a geographic

area(s) approved by HUD for conducting

a local urban homesteading program

that meets the requirements of § 590.7.

(t) "VA" means the Veterans

Administration.

§ 590.7 Program requirements.

An applicant shall meet the following

requirements to qualify for assistance

under this Part:

(a) Designation of Urban

Homesteading Neighborhood. It shall

designate neighborhood(s) for carrying

out urban homesteading. An urban

homesteading neighborhood shall have

available HUD-owned properties;

HUD-owned plus locally-owned

properties; or pursuant to Section

312(a)(1][D) of the Housing Act of 1964,

as amended, and Title I of the Housing

Community Development Act of 1974, as

amended, locally-owned properties

within designated areas where eligible

community development block grant

activities are being carried out. An

urban homesteading neighborhood shall

be in the following areas:

(1) The same as or contained within

Neighborhood Strategy Areas

designated pursuant to the Community

Development Block Grant regulations

published March 1,1978, in the Code of

Federal Regulations, Title 24. Chapter V.

Part 570, Subpart D-Entitlement

Grants. § 570.301(c); or

(2) Another area designated by the

applicant, if:

(i) The applicant is not a recipient of

community development block grant

entitlement funds authorized by Title I

of the Housing and Community

Development Act of 1974;

(ii) The required public improvements

and services will be provided from

sources other than community

development block grants; or

(iii) The neighborhood selected for

urban homesteading requires some

improvements but not the concentrated

treatment required for a Neighborhood

Strategy Area.

(b) Development ofLocal Urban

Homestea&ngProgram. It shall develop

a program to convey unoccupied

residential properties to qualified

individuals or families. The program

shall provide for the following:

(1) Homesteader Selection. It shall

provide equitable procedures for

homesteader selection giving special

consideration to the homesteader's:

(i) Need for housing; and

(ii) Capacity to make or cause to be

made necessary repairs and

improvements.

(2) Conditional conveyance. It shall

provide for the conditional conveyance

of unoccupied. unrepaired residential

property to homesteaders. Property

received from the Federally-owned

inventory shall be conditionally

conveyed without substantial

consideration.

(3) Homesteader Agreement. It shall

provide for execution of a Homesteader

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52764 Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

Agreement between the local urban

homesteading agency and the

homesteader which shall require the

homesteader:

(i) To make or cause to be made any

repairs required to meet minimum local

health and safety housing standards

prior to occupying the property;,

(ii) To make or cause to be made

additional repairs and improvements

necessary to meet the applicable local

standards for decent, safe, and sanitary

housing within 18 months after

occupying the property and to comply

with any energy conservation measures

designated by the local urban

homesteading agency as part of the

repairs;

(iii) To occupy the property as

principal residence for not less than

three consecutive years from the initial

date of occupancy;

(iv) To permit reasonable inspections

at reasonable times by employees or

designated agents of the local urban

homesteading agency; and

(4) Revocation Upon Breach of

Agreement. It shall provide for the

revocation of the conditional

conveyance upon any material breach of

the agreement by the homesteader.

(5) Fee Simple Title. It shall provide

for the conveyance of the property from

the local urban homesteading agency to

the homesteader in fee simple title upon

full compliance with the terms of the

agreement between the local urban

homesteading agency and the

homesteader.

(6) Coordinated Approach Toward

Neighborhood ImprovemeYlts. It shall

provide a plan for needed public

improvements and services, and

community facilities in the Urban

Homesteading Neighborhoods. (i) If the Urban Homesteading

Neighborhood is a Neighborhood

Strategy Area, then the coordinated

approach toward neighborhood

improvement for the area described in

the applicant's Community Development

Block Grant entitlement application,

pursuant to 24 CFR 570.304(b)(1)(i)

(Community Development and Housing

Plan) will satisfy this requirement. Such

an applicant will cite the appropriate

cross reference iM its applications. (ii) For designated urban

homesteading neighborhoods that are

outside or mostly outside of Community

Development Block Grant Neighborhood

'Strategy Areas bf entitlement recipients,

the coordihated approach toward

neighborhood improvement plan shall

include:

(A) A brief description of the area's

need for revitalization, community

facilities, public services and

improvements and housing problems;

(B) A description of the plan that will

be implemented to meet the identified

needs for upgrading and improving the

area; and

(C) A description of the actions to

mitigate any adverse effects on low-and

moderate-income persons that may

result from implementing an urban

homesteading program in the designated

neighborhood.

§ 590.9 Usting of HUD-owned and VAowned properties.

In order to facilitate planning for the

urban homesteading program, the

Secretary of HUD and the Administrator

of Veterans Affairs shall, upon request

of a local urban homesteading agency,

provide a listing of all unoccupied oneto four-family units to which HUD or VA

holds title, and which are located within

the jurisdiction of the urban

homesteading agency, except that

properties with executed repair or sale

contracts may be excluded from such

lists. \

§ 590.11 Applications.

(a) Submission Requirements.

Applications shall be submitted to the

HUD Area Office which has jurisdiction

over the applicant and shall consist of

the following.

(1) Standard Form 424, prescribed by

0MB Circular No. A-102;

(2) A description of the coordinated

approach toward neighborhood

improvement as required by

§ 590.7(b)(6). An applicant that is

applying for Commimity Development

Block Grant (CDBG) entitlement funds

may cite the appropriate cross reference

in its community development plan

pursuant to 24 CFR 570.304(b](1)(i)

(Community Development and Housing

Plan) to meet this requirement.

(3) A map of each proposed urban

homesteading neighborhood with

geographic boundaries indicated and

census tracts shown. The map shall

include:

(i) An estimate of the number and the

location of any locally-owned properties

to be coveyed to homesteaders during

the program's first year;,

(ii) An estimate of the number and the

location of any HUD-owned properties

requested for usein the proposed urban

homesteading program during the

program's first-year, and may include

data on Agriculture- and VA-owned

properties;_

(4) A description of the rehabilitation

financing plan to be used in the urban

homesteading neighborhood(s) which

shall include:

(i) An estimate and brief description

of terms.and conditions of the Federal,

State and/or local public funds and any

private funding sources that are to be

made available for interim and

permanent financing of rehabilitation;

(ii) The total number of residential

properties for rehabilitation (both

homestead properties and other

properties);

(iii) An outline of the applicant's

proposed schedule(s) and time periods

for committing rehabilitation loan funds

in its urban homesteading program.

(5) An implementation plan which

includes:

(i) The description of the public entity

that will carry out the program,

including any agreements with private

non-profit organizations, neighborhoodbased nonprofit organizations, small

business investment companies and/or

local development corporations, as

defined in Section 590.5(h) to provide

program related services (e.g. "counseling" services to homesteaders,

marketing activities, neighborhood

improvements, financial assistance,

rehabilitation).

(ii) A timetable and methods to

accomplish the program which includes:

(A) Transferring properties from HUD,

and may include the transfer of

Agriculture- and VA-owned properties

to the local urban homesteading agency;

(B) Advertising residential properties

for homesteading purposes;

(C) Conveying unoccupied, unrepalred

residential property to homesteaders;

and

(D) A summary of the plan for

implementing neighborhood

improvements in accordance with

590.7(b)(6)(i}-(ii).

(b) Certifications. The applicant shall

submit certifications in such form as

HUDmay prescribe, providing

assurances that:

(1) Its governing body has duly

adopted or passed as an official act,

resolution, motion, or similar action

authorizing the filing of the application

including all understandings and

assurances contained in the application,

(2) It possesses the legal authority to:

(i) Acdept the transfer without

payment of Federally-owned property;

(ii) Convey residential property

received from HUD, Agriculture or VA

to homesteaders without any substantial

consideration, and

(iii) Assist in or undertake the

financing of the rehabilitation for

residential property conveyed to

homesteaders.

(3) It has:

(i) A form for conditional conveyance

as required by § 590.7(b)(2);

(ii) Equitable procedures for selecting

homesteaders as required by

§ 590.7(b)(1); and
Federal Register / Vol. 45, No. 154 / Thursday. August 7, 1980 / Rules and Regulations

(ii) An urban homesteader agreement

required by § 590.7(b)(3).

(4) It will convey the residential

property received from HUD,

Agriculture or VA in fee simple title

without consideration to the

homesteader upon full compliance with

the terms of the agreement required in

§ 590.7(b)(3).

(5) It has, prior to submission of its

application:

(i) Provided citizens an adequate

opportunity to express preferences

about the proposed location of urban

homesteading neighborhoods; and

(ii) Provided citizens with adequate

information regarding the amount of

rehabilitation loan funds, and the

number of any Federally-owned

properties and/or locally-owned

properties to be homesteaded and the

coordinated approach toward

neighborhood improvement required by

§ 590.7(b)(6).

(6) It will submit any dnvironmental

information that may be requested by

HUD in meeting the Department's

environmental responsibilities under the

National Environmental Policy Adt of

1969.

(7) It will: (i) Not discriminate upon

the basis of race, creed, color, handicap,

sex, or national origin in the sale, lease,

or rental or in the use or occupancy of

the property conveyed in accordance

with this Part;

(ii) Comply with the requirements of

Title VI of the Civil Rights Act of 1964,

Title VIII of the Civil Rights Act of 1968;

and

(iii) Comply with Section 504 of the

Rehabilitation Act of 1973 -which

prohibits discrimination against the

handicapped in any program or activity

receiving Federal financial assistance.

(8) It will comply with the lead based

paint procedures set forth in 24 CFR Part

35 agreeing to:

(i) Assure the elimination of the lead

based paint hazards for which HUD will

not expend funds in residential

structures transferred under this Part;

and

(ii) Make notification to potential

homesteaders of the hazards of leadbased paint poisoning in residential

units constructed prior to 1950.

(9) It will submit any information that

may be requested by HUD meeting the

Department's Responsibilities under the

National Historic Preservation Act of

1966 (Pub. L 89-665] and the

Preservation of Historic and

Archaeological Data Act of 1974 (Pub. L

93-291), including the procedures

prescribed by the Advisory Council on

Historic Preservation in 36 CFR Part 800.

and Executive Order 11593 on Protection

and Enhancement of the Cultural

Environment

(10 It will, upon conveyance of title

from HUD, Agriculture or VA assume

liability for injury and damage to

persons or property by reason of a

defect in the dwelling, its equipment, its

appurtenances, or any other reason.

(11) It will give HUD, Agriculture, VA

and the Comptroller General through

any authorized representatives access to

and the right to examine all records,

books, papers, or documents related to

the urban homesteading program.

(12) It will maintain in writing and on

file a description of its approved local

urban homesteading program for the

purposes of public information and

review.

(c) OMB Circular A-95, Part IL

(1) The applicant shall submit the

completed application to all appropriate

State and areawide clearinghouses prior

to, or concurrently with, the submission

of the application to HUD.

(2] The clearinghouses shall have

thirty (30) days to review the completed

application and transmit to the applicant

and to the appropriate HUD Area Office

any comments or recommendations.

(3) Clearinghouses will be of

assistance to the applicant and to HUD

if their reviews address the impact of

the proposal in revitalizing the

designated urban homesteading

neighborhood, the relationships of the

proposal to community and areawide

planning ania any other considerations

not reflected in the application which

would bear on the viability of the

proposal as well as the "subject matter

of comments and recommendations" in

Part L Attachment A of OMB Circular

No. A-95, Item 5, with emphasis on

consistency among State, areawide, and

local plans and compliance with

environmental and civil rights laws.

(4) If the A-95 review comments

contain any findings of inconsistency

with State, areawide, or local plans or

noncompliance with environmental or

civil rights laws, the applicant must

state how It proposes to resolve the

finding or state its justification for

proposing to proceed with the project

despite the findings developed through

the A-95 review process.

(5) HUD will not approve an

application until all comments have

been received and considered from the

clearinghouses or until the end of the

thirty-day review period, whichever

occurs first.

(6) HUD shall notify the

clearinghouses of actions taken on all

applications reviewed within seven

working days by use of Standard Form

424. When HUD makes approval

following clearinghouse

recommendations against approval or

approval only with specific and major

substantive changes, the clearinghouse

will be provided an explanation for such

approval with the HUD submittal of SF

424.

(d) Application Submission.

Applications shall be submitted, at

anytime, to the HUD Area Office which

has jurisdiction over the applicant.

§ 590.13 HUD review and approval of

application.

The appropriate HUD Area Office will

review the application and will approve

the proposed local urban homesteading

program, unless the HUD Area Office

determines that it does not comply with

the requirements of this Part and other

applicable laws and regulations.

Approval of the application does not

however, obligate HUD or Agriculture or

VA to transfer a specific number of

properties or particular properties

identified in the application. If the

application is disapproved, the applicant

shall be informed in writing of the

specific reasons for the disapproval.

§590.15 Urban homesteading agreement.

(a) Upon approval of the proposed

local urban homesteading program. the

appropriate HUD Area Office will sign

an Urban Homesteading Agreement

with the local urban homesteading

agency. The regulations of this part

become a part of the agreement.

(b) The agreement is renewable on an

annual basis: Provided, That-

(1) The local urban homesteading

agency has carried out its program

substantially as proposed and approved,

and

(2) The local urban homesteading

agency has a continuing capacity to

carry out the approved program in a

timely manner including the selection of

homesteaders, the conveyance of

residential property to homesteaders,

the implementation of its interim and

permanent financing plan(s), the

completion and quality of the housing

rehabilitation and the implementation of

its coordinated approach toward

neighborhood improvements.

§590.17 Transfer of HUD-owne4 property.

(a) Property Disposition Assistance.

HUD's property disposition activity

shall support the Urban Homesteading

Program as follows:

(1) Upon the signing of the Urban

Homesteading Agreement as required in

§ 590.15 but prior to the initial selection

of any HUD-owned property, a local

urban homesteading agency may

request HUD to suspend its routine

property disposition activity for up to 45

days in the designated urban

52765
52766 Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

homesteading neighborhood(s). Based

upon this request, HUD shall state in

writing the starting and closing dates of

the suspension of property disposition

activity for all HUD-owned properties

except those for which there are repair

or sales contracts.

(2) The HUD Area Offices shall

develop and implement a property

disposition plan for HUD-owned

properties in the designated urban

homesteading neighborhood which is

consistent with the local urban

homesteading program. This plan shall

include the following procedure:

(i) As soon as feasible, but in any

event not later than ten days, after

receipt of notice of property transfer and

application for insurance benefits to

HUD for an HUD-owned unoccupied,

one- to four-family residence in an

approved urban homesteading

neighborhood, the HUD Area Office

shall notify the local urban

homesteading agency of the potential

availability of the property for

homesteading. The notification shall be

in writing and shall include the street

address and zip code and shall inform

the local urban homesteading agency

that it has thirty days from the date of

the notice to inform the Area Office if it

wishes to use the property for

homesteading.

(ii) The Area Office shallnot approve

a property disposition program for that

property until the local urban

homesteading agency has informed that

Area Office, in writing, whether or not it

intends to use the property in the urban

homesteading program or until 30 days

have expired from the date of HUD's

notice to such agency, whichever comes

first. The Area Office manager may

extend the thirty (30) day deadline, if the

Area Office Manager makes a

determination that notification by the

local urban homesteading agency within

thirty (30) days is impractical. The title

for any property requested in

accordance with this procedure shall be

transferred to a local urban bombsteading agency if such property meets

the conditions for transferring HUDowned properties listed in § 590.17(b). (b) Conditions for Transferring HUDOwned Properties. Except as provided

in § 590.17(c) below, HUD shall transfer

the title of HUD-owned properties to a

local urban homesteading agency,

without receiving payment from such

agency, if the following conditions are

met:

(1) The local urban homesteading

program has been approved by HUD;.

(2] The properties requested by the

local urban homesteading agency are in

a designated urban homesteading

neighborhood(s);

(3) The HUD Area Office has reserved

the necessary Section 810 funds to

reimburse HUD's housing loan and

mortgage insurance accounts for the

residential property to be transferred;

(4) The requested property is HUDowned unoccupied, unrepaired and a

repair or sale contract has not been

signed; (5) The requested property is

determined to be suitable for the

approved local urban homesteading

program by the Area Office. In making

this determination the Area Office will

.take into account the following factors:

(i] The value of the property. The

value of the property shall not exceed

$15,000 for a one unit single family " residence or an additional $5,000 for

each unit of two- to four-family

residences. To compute this value, HUD

shall estimate and deduct from the

appraised as is fair market value of the

property the cost of continued care and

handling for the average length of time

for that area that such property might

remain in HUD's inventory if it were not

transferred to a local urban

homesteading agency;

(ii) The estimated cost of housing

repairs required. The cost of required

repairs shall not exceed the applicable

statutory limit of the Section 312

rehabilitation loan program;

(iii) The Area Office Manager may

authorize on a property by property or

program by program basis the transfer

of HUD-owned property: (A) Whose value exceeds the

limitations, cited in paragraph (b)(5)(i) of

this section, if the benefit to the

community, expected from the expedited

occupancy of the property and the

reduction of difficulties and delays (such

as vandalism to property),that HUD

typically encounters in the disposition

and sale of property, warrant the

additional cost to the Federal

Government;

(B) For which the value of housing

repairs exceeds the limitation, cited in

paragraph (b)(5)(ii) of this section, when

the value of such repairs in excess of the

applicable loan limit of the Section 312

loan program will be provided by the

homesteader or through other local

resources other than Section 312

rehabilitation loan funds.

(c) Exceptions. (1) If a local urban

homesteading agency fails to accept title

within thirty (30) days of the agency's

selection of a HUD-owned property

made available in accordance with

§ 590.17(b)(1)-(5), the Area Office may,

approve an alternative disposition plan

for the property. The Area Office

Manager may extend, for a reasonable

period of time, this thirty (30) day

deadline if the Area Office Manager

makes a determination that acceptance

of title by the local urban homesteading

agency within thirty (30) days of

property selection is impractical.

• (2) A property otherwise eligible for

transfer to a local urban homesteading

agency may be used to meet higher

priority needs if the Area Office

Manager makes a determination in

writing that such property is essential to

meet an existing legal obligation such as

the following:

(i) Settlement of Sales Warranty

claims;

(ii) Settlement of section 518 claims

for critical structural defects in one- to

four-family dwellings with certain

mortgages Insured by HUD;

(iiI) Emergency housing needs:

(disaster housing and urgent public

housing needs);

(iv) Reconveyance for noncompliance

with regulation 24 CFR Sec. 203.383;

(v) Reconveyance pursuant to Civil

Frauds Act settletent; and

(vi) Reconveyance where the

mortgage was never insured.

(3) A property otherwise eligible for

transfer to a local urban homesteading

agency for use in its HUD approved

homesteading program, may instead be

made available to private non-profit

organization, a local development

corporation or a neighborhood nonprofit

organization as defined In Section

590.5(h) if the Area Office Management

determines in writing that such transfer

will serve the community's best interest

and is consistent with the goals of the

local urban homesteading program. Such

transfer does require concurrence of the

local urban homesteading agency or the

local government.

§ 590.18 Reimbursement to the

Department of Agriculture and to the

Veterans Administration.

(a) The Secretary of HUD Is

authorized to reimburse the Secretary of

Agriculture and the Administrator of

Veterans Affairs in an agreed amount,

out of Section 810 funds, for property

which

(1) Is improved with a one- to fourfamily residence;

(2) Is not occupied;

(3) Is located in an urban

homesteading area, in a locality which

has an approved urban homesteading

program;

(4) Has been approved for urban

homesteading use by the locality and by

the HUD Area Office;

(5) Has a value not in excess of

$15,000 for a one-unit single-family

residence or an additional $5,000 for

each unit of two- to four-family

residences;
Federal Register / Vol. 45, No. 154 / Thursday. August 7. 1980 / Rules and Regulations 52767

(6) Is conveyed to a local urban

homesteading agency for use in an

approved local urban homesteading

program.

(b) The reimbursement shall not

exceed an amount certified by

Agriculture or VA to be a fair value

based on the lesser of The market value

and the amount of the claim plus the

expenses connected with Federal

ownership.

§ 590.19 Implementing funds.

HUD will reserve or otherwise

provide available Section 810 funds and

Section 312 rehabilitatioh loan funds

necessary to assist in implementing an

alproved local urban homesteading

program. The Section 810 funds may not

be used to reimburse local homesteading

agencies for administrative costs nor,

may they be used to acquire property

other than through reimbursement for

property owned by the Secretary of

HUD, the Secretary of Agriculture, and

the Administrator of Veterans Affairs.

§ 590.21 Reduction of funds.

The Secretary reserves the right to

reduce any Section 810 allocation or

Section 312 rehabilitation loan funds

earmarked, reserved or targeted for a

local urban homesteading agency should

such agency not meet the schedules for

use of such funds required in

§ § 590.11(a}(4)(iii) and 590.11(a)(5)(ii)

(A) and (C], and does not comply with

the statutory and regulatory

requirements of this part or fails to carry

out its program as approved.

§ 590.23 Program close out [Reserved]

§ 590.25 Retension of records.

Financial records, property

disposition documents, supporting

documents, statistical records, and all

other records pertinent to the urban

homesteading program shall be retained

b6y the local urban homesteading agency

for a period of three years from the date

of the program closeout.

§ 590.27 AudiL

The Secretary, the Comptroller

General of the United States, or any of

their duly authorized representatives,

shall have access to all books, accounts,

records, reports, files, and other papers

or property of local urban homesteading

agencies pertaining to funding

assistance related to this part and HUDowned property transferred under this

part for the purpose of making surveys,

audits, examinations, excerpts, and

transcripts.

§ 590.29 Applicable Federal laws and

regulations.

(a) Nondiscrimination. Every phase of

an approved local urban homesteading

program is to be implemented in

accordance with the requirements of

Title VI of the Civil Rights Act of 1964

and Title VIII of the Civil Rights Act of

1968. Approved local urban

homesteading programs shall also

comply with Section 504 of the

Rehabilitation Act of 1973 which prohibits

discrimination against the handicapped.

(b) National Environmental Policy

Act. In implementing and administrating

the Urban Homesteading Program. HUD

shall comply with the National

Environmental Policy Act of 1969 and all

rules, regulations, and requirements

issued pursuant thereto.

(c) National Historic Preservation

Act. In implementing and administering

the Urban Homesteading Program, HUD

shall comply with the National Historic

Preservation Act (Pub. L 89-665), the

Preservation of Historic and

Archeological Data Act of 1974 (Pub. L

93-291). including the procedures

prescribed by the Advisory Council on

Historic Preservation in 36 CFR Part 800,

and Executive Order 11593 on Protection

and Enhancement of the Cultural

Environment.

(d) Lead-Based Paint Poisoninq

Prevention Act. Local urban

homesteading agencies shall comply

with the Department's Lead-Based Paint

Regulations (24 CFR Part 35) issued

pursuant to the Lead-Based Paint

Poisoning Prevention Act (42 U.S.C. 4831

et seq.) requiring prohibition of the use

of lead-based paint; elimination of

immediate lead-based paint hazards in

any residential structure transferred

under this part; and notification of the

hazards of lead-based paint poisoning to

potential homesteaders in residential

units constructed prior to 190 and

assisted under this parL

(e) Acquisition and Relocation. If a

local urban homesteading agency

acquires real property for an urban

homesteading program approved under

the regulations in this part, It shall

comply with HUD relocation and

acquisition regulations at 24 CFR Part

42.

§ 590.31 HUD review of local urban

homesteading agency's performance.

(a) HUD will review each local urban

homestehding agency'sperformance at

least annually to determifie whether:.

(1) The program complied with the

requirements of Title VIII, Section 810,

of the 1974 Act, as amended, the

implementing regulations, and other

applicable laws and regulations;

(2) The local urban homesteading

agency has carried out its program

substantially as proposed and approved;

and

(3) The local urban homesteading

agency has a continuing capacity to

carry out the approved program in a

timely manner.

(b] In reviewing a local urban

homesteading agency's performance.

HUD will consider all available

evidence which may include, but need

not be limited to the following:

(1) Records maintained by the local

urban homesteading agency;

(2) Results of HUD's monitoring of

local urban homesteading agency's

performance;

(3) Audit reports whether conducted

by the local urban homesteading agency

or by HUD auditors; and

(4) Records of comments and

complaints by citizens and

organizations, or litigation.

§ 590.33 Corrective and remedial action.

When HUD determines on the basis of

its review that there is a deficiency in

the local urban homesteading agency's

performance, the HUD Area office shall

take one or more of the following

corrective or remedial actions that are

appropriate for the circumstances:

(a) Issue a letter of warning that

advises the local urban homesteading

agency of the deficiency and puts it on

notice that more serious corrective and

remedial actions will be taken if the

deficiency is not corrected or is

repeated;

(b) Advise the local urban

homesteading agency to suspend.

discontinue or not incur costs for the

defective aspect(s) of the local pr6gram;

(c) Condition the renewal of the

Urban Homesteading Agreement if there

is substantial evidence of a lack of

progress, noncompliance, or a lack of a

continuing capacity. In such cases, the

reasons for the conditional renewal and

the actions necessary to remove the

condition shall be specified; or

(d) Cancel the Urban Homesteading

Agreement and explain the reasons for

such action.

§ 590.35 Evaluation by HUD.

Local urban homesteading agencies

shall supply data or make available

such records as are necessary for the

completion of HUD's annual evaluation

of the Urban Homesteading Program.

In accordance with Section 7(o](4) of

the Department of HUD Act. Section 324

of the Housing and Community

Amendments of 1978, P.L 95-557, 92

Stat. 2060, this rule has been granted
52768 Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Rules and Regulations

waiver of Congressional review

requirements in order to permit it to take

effect on the date indicated.

Issued at Washington, D.C. on July 31, 1980.

Robert C. Embry, Jr.,

Assistant Secretary for CommunityPlanning

and Development.

111R Doc. 80-23953 Filed 8-6-M. 8:45 am]

BILLING CODE 4210-01-M
Reader Aids Federl Register

Vol. 45, No. 154

Thursday. August 7. 1980

INFORMATION AND ASSISTANCE CFR PARTS AFFECTED DURING AUGUST

Questions and requests for specific information may be directed

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523-4534 Special Projects

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FEDERAL REGISTER PAGES AND DATES, AUGUST

51167-51538 ....................... 1

51539-51754 ....................... 4

51755-52138 ....................... 5

52139-52354 ....................... 6

52355-52768 ....................... 7

At the end of each month, the Office of the Federal Register

publishes separately a list of CFR Sections Affected (LSA). which

lists parts and sections affected by documents published since

the revision date of each title.

3 CFR

Executive Ordors

11790 (See 12231)...... 52139 12230 ...............- 51167

12231.........---52139

Proclamations

4776-....-.....51539

Administrative Orders:

Memorandumr:

July 31. 1980.....51169-51174

5 CFR

C41 XIV.-- - 51541

Proposed Rules:

359 51214

6 CFR

705-- -. 51175

706 51541

7 CFR

Z 52355

210 ......... 515

301-...................... 51176

331 ............... -- 51755 722 .......... . . .51755

910 ................

91 . ...... .. -51170

924--.---. . 51180

946 .............

948 ...........51182

968 ....52141 967---.52143

1137...-.51542

1446 ..... 51756 2853 ..--.-........ 51757

Proposed Rules:

29 ............... 51572 272. ...... 526

800 ............ 52339

985 ................. . 51818

1464 ...................... 51579

8 CFR

264 ...............

Proposed Rules: Ch. I ... . .............. .. ... 51832 214...... .51580

9 CFR

Proposed Rules:

318 ...... ........ 51832

ID CFR

110 51184

212---- -. 52112

445- - - 51763

Proposed Rules:

205---........ 51833

378-...51581

11 CFR

100- 52356

110 .... 52356

12 CFR

201 52144

Proposed Rule=

Ch.I 52168

Ch. Il 51581

525 52173

541. -...... 52173, 52177

545 52173,52177

561 52177

563 52173,52177

13 CFR

101 51763

14 CFR

39---51543-51546, 52357

71.. 51546

91 51547

97 .52358

121 51547

127- -51547 135 .... 51547

375 . .51 838

Proposed Rules:

71-.. 51587-51590. 52396

73 ... 51591

75- 52396

15 CFR

Proposed Rules:

19- .51592

16 CFR

436.-....51763,51765

455-. 52750

Proposed Rules:

13-.....-51593,51596

239-..- 51838

705-..... - .51218

17 CFR

Proposed Rules:

1 .. 51598

- - 51600

18 CFR

282. .... . -5059
ii Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Reader Aids

Proposed Rules: 270 ..................................... 52407 51 ....................................... 52676 83 ....................................... 52154

271 ............................... 51219 275 ................ 52407 52 ............ 51198, 51199, 52148, 87 ....................... 52154

273 ............................... 51219 52676 90 .................... 5............ 51811

274...... ............................. 51219 28 CFR 122 .................................... 52149 97 ...................... 4 ................ 51564

301 ..................................... 51614 0 ......................................... 52145 124 ..................................... 52676 Proposed Rules:

19 CFR Proposed Rules: 180 ........... 51200, 51781, 51782 Ch. I ................ 51251

Ch. I ...................... 51506; 51832 Proposed Rules: 2 ............................ 51251, 51252

571..... .............................. 52365 16 ....................................... 52183 .52 ............. 51619,51620,52184 15 ...................................

51251

Proposed Rules: 50 ................. 52183 162 ................ 52628 21 ................. 51252

Ch.I ................ 51490 164 ................ 52628 73 ................. 51624

29 CFR 167 ..................................... 52184 74 ...................................

51252

20 CFR 11 ...................................... 51187 169 ................ 52184 94 ....................... 51252

404 ..................................... 52078 40 ....................................... 51192 180 ..................................... 51854

416 ..................................... 52078 102 ..................................... 51192 408 ..................................... 52411 48 CFR

Proposbd Rules: 1952 ................................... 51775 410 ..................................... 52185 Proposed Rules:

Ch. II ...... ............. 51615 1625 ................................... 51547 717............................ 51855 9 ....................................

51253

21 CFR 1999 ................................... 51187 41 CFR

2520 ................................... 51446 49 CFR

172 .................................... 51766 2550 ................................... 51194 Ch. 101 .......................... 51201, 571 ..................................51569

175 ..................................... 51184 Proposed Rules: 941 ..................................

52389

176 .................................. 51767 Ch. XIV ......... : .................. 51229, 42 CFR 1002 ...................... 51213, 52158

193 ..................................... 51768 2520.................................. 51231 57 ........................ 51201,51205 1003 ................. 51213,52158

884 ........... 51185,51186 2530 ............... 51231 58 ............ 51209,51556 1033 ........ 51812-51815, 52158,

Proposed Rules: 2550 ..................... 51231, 51840 405 ..................................... 51783 52160,52161

Ch. II ..................... 51832,52397 455 ..................................... 51559 1045A ................... 51213, 52158

610.; ................................. 51226 30 CFR Proposed Rules: 1056 ...................... 51213, 52158

660 ..................................... 51226 Ch. VII ................................ 51547 72 ............................... 51241 1062 ...................... 51213, 52158

762 ................................... 52375 1100 .......... 51213, 52158

23CFR 800 ..................................... 52306 43CFR 1130 ..................... 1213, 52158

657 ..................................... 52365 801 ..................................... 52306 8351 .............................. 51740 1150 ...................... 51213, 52158

658 ..................................... 52365 805 ..................................... 52306 Proposed Rules: 1309 ................................... 52161

Proposed Rules: - 806 ..................................... 52306 2560 ................................... 52303 1310 ................................... 52161

625 ..................................... 51720 807 ..................................... 52306 Public Land Orders: Proposed Rules:

652 ..................................... 51720 808 ..................................... 52306 5742 ............................. 51787 398 ............. I ............. 51625

663 ..................................... 51720 Proposed Rules: 5743 ................................... 51787 571 .................. 51626, 51628

Ch. VII ................... 52407, 52408 5744 ................................... 51788 1102 .................................

51858

24 CFR 250 ................ 52408 5745 ............... 52382 1116 ............... 52186

203 ........................ 51769,51770 700 .................................... 52410 5746 ................................... 52382

207 ........................ 51769,51771 701 .................................... 52410 50 CFR

213 ................................... 51771 784 ..................................... 51240 44 CFR 26 ...................................52391

220 ........................ 51769,51770 817 ..................................... 51240 64 ..................................... 52383 32 .......................... 52392,52393

221 .............. 51770,51771 65 ............. 51212, 51788,52384 Proposed Rules:

222 ..................................... 51770 32 CFR 67 ............ 51213,51559,51789, 32 ...................................

52163

226 .................................... 51770 763 ............. r ..................... 51776 51796 216 ..................................51254

235 ..................................... 51770 888d ............... 52145 Proposed Rules: 265 ................ 51858

279 ..................................... 51510 6 ......................................... 51426 611 ..................................

51254

571 ..................................... 51516 33 CFR 67 ............. 51855-51858, 52416, 655 ..................................51254

590 ..................................... 52762. 117 ..................................... 51550 52417,52422,52427 661 ..................................51861

869 ..................................... 52371 207 ........................ 51551,51555

885 ..................................... 51186 401 ..................................... 52376 45 CFR

1710 ................................... 52144 Proposed Rules: 121i .................................... 52130

Proposed Rules: 117 .......... 51617,51618 1210 ............... 52130

570 .................................... 51227 121p ................................... 52130,

865 ................ 51228 34 CFR 121q .... ........... 52130

866 .................................... 51615 Proposed Rules: . 121r ................................... 52130-

886 ................ 51228 100 ................ 52052 1060 ............... 51561

888 ..................................... 51228 Proposed Rules:

889 ..................................... 51229 36 CFR 121q ................................... 52136

26 CFR Proposed Rules: 190 ..................................... 51243

7 ......................................... 51618

1 ......................................... 52373 1202 ............... 51843 46 CFR

26a ..................................... 51771 30 ....................................... 52386

Proposed Rules: CFR 61 ....................................... 52386

1 ................... 52399 304 ................ 51197 - 151 .................................... 52386

26 ....................................... 51840

27CR38 CFR . 47 CFR

27CFR 21.....................................51777 Ch.I ................................... 52389

Proposed Rules: 13 ....................................... 52154

Ch.I ................................... 51496 39 CFR 22 ....................................... 52149

19 ....................................... 52407 Proposed Rules: 69 ................. 52151

70 ....................................... 52407 111 ..................................... 51846 73 .............. 51561-51563,52152

240 ..................................... 52407 74 ...................................... 51563

245 ..................................... 52407 40 CFR 76 ...................................... 52153

250 ................ 52407 35 .................................... 51484 81.....: .................................. 52154
Federal Register / Vol. 45, No. 154 / Thursday, August 7, 1980 / Reader Aids iii

AGENCY PUBLICATION ON ASSIGNED DAYS OF THE WEEK

The following agencies have agreed to publish all This Is a voluntary program. (See OFR NOTICE

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Rules Going Into Effect Today

AGRICULTURE DEPARTMENT

Office of the Secretary45887 7-8-80 / Amendment of certification of essential

agricultural uses and requirements; Natural Gas Policy Act

FEDERAL COMMUNICATIONS COMMISSION

46406 7-10-80 / FM broadcast stations in Bonita Springs, Goulds,

and Homestead, Fla.; change to table of assignments

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INTERIOR DEPARTMENT

Indian Affairs Bureau45909 7-8-80 / Rights-of-way over Indian lands

Ust of Public Laws

Last Listing August 6,1980

This is a continuing listing of public bills from the current session of

Congress which have become Federal laws. The text of laws is not

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pamphlet form (referred to as "slip laws") from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C.

20402 (telephone 202-275-3030).

S. 2995 / Pub. L 96-321 To allow the transfer of certain funds to

fund the heat crisis program. (Aug. 4,1980; 94 Stat 1001)

Price $1.

LR. 6666 / Pub. L 96-322 To revise the laws relating to the Coast

Guard Reserve. (Aug. 4. 1980; 94 Stat 1002) Price 51.25.

H.R. 5580/ Pub. L 96-323 North Atlantic Treaty Organization Mutual Support Act of 1979. (Aug. 4, 1980; 94 Stat 1016)

Price $1.