This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

7546 

Vol. 77, No. 29 

Monday, February 13, 2012 

DEPARTMENT OF AGRICULTURE 

Rural Business-Cooperative Service 

Rural Utilities Service 

7 CFR Part 4279 

RIN 0570–AA87 

Definitions and Abbreviations 

AGENCY: Rural Business-Cooperative 

Service, Rural Utilities Service, USDA. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Rural BusinessCooperative Service is amending its 

regulations for the Business and 

Industry Guaranteed Loan Program to 

clarify that the Agency guarantee does 

not cover default and penalty interest or 

late charges. The Agency’s regulations 

are currently silent on this issue. 

However, it has always been the 

Agency’s policy not to pay out 

additional cost for default interest, 

penalty interest, and late charges 

calculated and submitted on a final 

report of loss claim under the Loan Note 

Guarantee. The Agency does permit the 

lender to charge default interest with 

prior Agency approval. By defining 

‘‘interest’’ in the definition section of 

the regulation and clarifying the 

Agency’s policy as it relates to default 

interest, penalty interest, and late 

charge, this will avert any 

misunderstandings. 

DATES: Comments on this proposed rule 

must be received on or before March 14, 

2012. 

ADDRESSES: You may submit comments 

to this proposed rule by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Submit written comments via 

the U.S. Postal Service to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, STOP 0742, 1400 

Independence Avenue SW., 

Washington, DC 20250–0742. 

• Hand Delivery/Courier: Submit 

written comments via Federal Express 

Mail or other courier service requiring a 

street address to the Branch Chief, 

Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, 300 7th Street SW., 7th 

Floor, Washington, DC 20024. 

All written comments will be 

available for public inspection during 

regular work hours at the 300 7th Street, 

SW., 7th Floor address listed above. 

FOR FURTHER INFORMATION CONTACT: Mr. 

David Lewis, Rural Development, 

Business Programs, U.S. Department of 

Agriculture, 1400 Independence Avenue 

SW., Stop 3221, Washington, DC 20250– 

3221; email: david.lewis@wdc.usda.gov; 

telephone (202) 690–0797. 

SUPPLEMENTARY INFORMATION: 

Classification 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and has not been reviewed 

by the Office of Management and 

Budget (OMB). 

Programs Affected 

The Catalog of Federal Domestic 

Assistance Program number assigned to 

the Business and Industry Guaranteed 

Loan Program is 10.768. The Catalog of 

Federal Domestic Assistance Program 

number assigned to the Biorefinery 

Assistance is 10.865. The Catalog of 

Federal Domestic Assistance Program 

number assigned to the Rural Energy for 

America Program is 10.868. 

Environmental Impact Statement 

This document has been reviewed in 

accordance with 7 CFR part 1940, 

subpart G, ‘‘Environmental Program.’’ 

Rural Development has determined that 

this action does not constitute a major 

Federal action significantly affecting the 

quality of the human environment and, 

in accordance with the National 

Environmental Policy Act (NEPA) of 

1969, 42 U.S.C. 4321 et seq., an 

Environmental Impact Statement is not 

required. 

Executive Order 12372, 

Intergovernmental Consultation 

The program is subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with State and local 

officials. Consultation will be completed 

at the time of the action performed. 

Executive Order 12988, Civil Justice 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The Agency has determined 

that this rule meets the applicable 

standards provided in section 3 of the 

Executive Order. Additionally, (1) all 

state and local laws and regulations that 

are in conflict with this rule will be 

preempted; (2) no retroactive effect will 

be given to the rule; and (3) 

administrative appeal procedures, if 

any, must be exhausted before litigation 

against the Department or its agencies 

may be initiated, in accordance with the 

regulations of the National Appeals 

Division of USDA at 7 CFR part 11. 

Executive Order 13132, Federalism 

The policies contained in this rule do 

not have any substantial direct effect on 

states, on the relationship between the 

national government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Nor does this rule 

impose substantial direct compliance 

costs on state and local governments. 

Therefore, consultation with states is 

not required. 

Regulatory Flexibility Act Certification 

Under section 605(b) of the 

Regulatory Flexibility Act, 5 U.S.C. 

605(b), the Agency certifies that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. The Agency 

made this determination based on the 

fact that this regulation only impacts 

those who choose to participate in the 

program. Small entity applicants will 

not be impacted to a greater extent than 

large entity applicants. 

Unfunded Mandates 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995) for State, 

local, and tribal governments or the 

private sector. Thus, this rule is not 

subject to the requirements of sections 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This executive order imposes 

requirements on Rural Development in 

the development of regulatory policies 


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Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Proposed Rules 7547 

that have tribal implications or preempt 

tribal laws. Rural Development has 

determined that the rule does not have 

a substantial direct effect on one or 

more Indian tribe(s) or on either the 

relationship or the distribution of 

powers and responsibilities between the 

Federal Government and Indian tribes. 

Thus, this rule is not subject to the 

requirements of Executive Order 13175. 

If a tribe determines that this rule has 

implications of which Rural 

Development is not aware and would 

like to engage with Rural Development 

on this rule, please contact Rural 

Development’s Native American 

Coordinator at AIAN@wdc.usda.gov. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995, the information 

collection activities associated with this 

rule are covered under the Business and 

Industry Guaranteed Loan Program, 

OMB Number: 0570–0017. 

This rule contains no new reporting 

or recordkeeping requirements that 

would require approval under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. Chapter 35). 

E-Government Act Compliance 

Rural Development is committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies, to 

provide increased opportunities for 

citizen access to Government 

information and services, and other 

purposes. 

I. Background 

The Agency reviewed 7 CFR 4279.2 

which is composed of two paragraphs, 

the first of which is pertinent. Section 

4279.2(a) discusses the definitions, 

which has thirty seven terms use in the 

Guaranteed Loanmaking. The 

definitions and abbreviations contained 

in § 4279.2 also apply to the Business 

and Industry Guaranteed Loan Servicing 

regulations and, unless otherwise noted, 

the Biorefinery Assistance Loan 

Program and the Rural Energy for 

America Program. Currently, the Agency 

regulations do not define ‘‘interest’’, 

‘‘default interest’’, ‘‘penalty interest’’ or 

‘‘late charges’’. However, it is the 

Agency’s policy not to pay out 

additional cost for default interest, 

penalty interest and late charges 

calculated and submitted on a final 

report of loss claim under the Loan Note 

Guarantee. However, the lender’s 

Promissory Note may contain provisions 

for default, penalty interest, or late 

charges with prior Agency approval. 

These charges must be customary and 

reasonable. Accordingly, the Agency is 

making the proposed changes in this 

rule. 

II. Discussion of Change 

The Agency is revising § 4279.2(a), to 

address the situation discussed in the 

‘‘Background’’ section. Specifically, the 

Agency is adding a paragraph in 

§ 4287.2(a), after the term ‘‘Holder’’ and 

before the term Interim Financing, 

which will define ‘‘Interest.’’ The 

change being made by this rule is to 

clarify that ‘‘interest’’ does not include 

default or penalty interest, or late fees. 

The lender may charge the borrower 

these fees with prior Agency approval. 

List of Subjects in 7 CFR Part 4279 

Business and industry, Loan 

programs, Rural development 

assistance. 

For the reasons set forth in the 

preamble, chapter XLII, title 7, of the 

Code of Federal Regulations is proposed 

to be amended as follows: 

CHAPTER XLII—RURAL BUSINESSCOOPERATIVE SERVICE AND RURAL 

UTILITIES SERVICE, DEPARTMENT OF 

AGRICULTURE 

PART 4279—GUARANTEED 

LOANMAKING 

1. The authority citation for part 4279 

continues to read as follows: 

Authority: 5 U.S.C. 301; 7 U.S.C. 1932(a); 

and 7 U.S.C. 1989. 

Subpart A—General 

2. Paragraph (a) of § 4279.2 is 

amended by adding a new definition of 

Interest, to read as follows: 

§ 4279.2 Definitions and abbreviations. 

* * * * * 

Interest. A fee paid by a borrower to 

the lender as a form of compensation for 

the use of money. When money is 

borrowed, interest is paid as a fee over 

a certain period of time (typically 

months or years) to the lender as a 

percentage of the principal amount 

owed. ‘‘Interest’’ does not include 

default or penalty interest or late fees or 

charges. The lender may charge these 

fees and interest with prior Agency 

approval, but they are not covered by 

the Loan Note Guarantee. 

* * * * * 

Dated: February 2, 2012. 

Dallas Tonsager, 

Under Secretary, Rural Development. 

[FR Doc. 2012–3242 Filed 2–10–12; 8:45 am] 

BILLING CODE 3410–XY–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket No. EERE–2011–BT–STD–0043] 

RIN 1904–AC51 

Energy Conservation Standards for 

Wine Chillers and Miscellaneous 

Refrigeration Products: Public Meeting 

and Availability of the Framework 

Document 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Notice of public meeting and 

availability of the framework document. 

SUMMARY: The U.S. Department of 

Energy (DOE) is considering 

establishing energy conservation 

standards for residential wine chillers 

and other residential refrigeration 

products. DOE will hold an informal 

public meeting to discuss and receive 

comments on its planned analytical 

approach and issues that it will address 

in this proceeding. DOE welcomes 

written comments and relevant data 

from the public on any subject within 

the scope of this notice. To inform 

stakeholders and facilitate this process, 

DOE has prepared a framework 

document that details the analytical 

approach and identifies several issues 

on which DOE is particularly interested 

in receiving comments. The framework 

document is available at http:// 

www1.eere.energy.gov/buildings/ 

appliance_standards/residential/ 

refrigerators_freezers.html. 

DATES: DOE will hold a public meeting 

on February 22, 2012, from 9 a.m. to 

5 p.m. in Washington, DC. Additionally, 

DOE plans to conduct the public 

meeting via webinar. To participate via 

webinar, participants must notify DOE 

no later than Wednesday, February 15, 

2012. Registration information, 

participant instructions, and 

information about the capabilities 

available to webinar participants will be 

published on the following Web site 

https://www1.gotomeeting.com/register/ 

270198257. Participants are responsible 

for ensuring that their systems are 

compatible with the webinar software. 

Any person requesting to speak at the 

public meeting should submit such 

request along with a signed original and 

an electronic copy of the statements to 

be given at the public meeting before 4 

p.m., Wednesday, February 15, 2012. 

Written comments are welcome, 

especially following the public meeting, 

and should be submitted by March 14, 

2012. 


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