Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations 14297 

that before a rule may take effect, the 

agency promulgating the rule must 

submit a rule report to each House of 

the Congress and to the Comptroller 

General of the United States. EPA will 

submit a report containing this rule and 

other required information to the U.S. 

Senate, the U.S. House of 

Representatives, and the Comptroller 

General of the United States prior to 

publication of this final rule in the 

Federal Register. This final rule is not 

a ‘‘major rule’’ as defined by 5 U.S.C. 

804(2). 

List of Subjects in 40 CFR Part 180 

Environmental protection, 

Administrative practice and procedure, 

Agricultural commodities, Pesticides 

and pests, Reporting and recordkeeping 

requirements. 

Dated: February 24, 2012. 

Steven Bradbury, 

Director, Office of Pesticide Programs. 

Therefore, 40 CFR chapter I is 

amended as follows: 

PART 180—[AMENDED] 

■ 1. The authority citation for part 180 

continues to read as follows: 

Authority: 21 U.S.C. 321(q), 346a and 371. 

■ 2. Add § 180.658 to subpart C to read 

as follows: 

§ 180.658 Penthiopyrad; tolerances for 

residues. 

(a) General. (1) Tolerances are 

established for residues of 

penthiopyrad, including its metabolites 

and degradates, in or on the 

commodities in the table below. 

Compliance with the tolerance levels 

specified below is to be determined by 

measuring only penthiopyrad (N-[2-(1,3- 

dimethylbutyl)-3-thienyl]-1-methyl-3- 

(trifluoromethyl)-1H-pyrazole-4- 

carboxamide). 

Commodity Parts per 

million 

Alfalfa, forage ............................. 7.0 

Alfalfa, hay .................................. 20 

Almond, hulls .............................. 6.0 

Apple, wet pomace ..................... 1.5 

Barley, grain ............................... 0.15 

Barley, hay .................................. 80 

Barley, milled byproducts ........... 0.90 

Barley, straw ............................... 1.0 

Beet, sugar, dried pulp ............... 1.5 

Beet, sugar, roots ....................... 0.5 

Berry, low growing, subgroup 

13–07G ................................... 3.0 

Brassica, head and stem, subgroup 5A ................................. 5.0 

Brassica, leafy greens, subgroup 

5B ............................................ 50 

Buckwheat, grain ........................ 0.15 

Canola ........................................ 1.5 

Commodity Parts per 

million 

Corn, field, forage ....................... 40 

Corn, field, grain ......................... 0.01 

Corn, field, refined oil ................. 0.05 

Corn, field, stover ....................... 15 

Corn, pop, grain .......................... 0.01 

Corn, sweet, kernel plus cob 

with husks removed ................ 0.01 

Cotton, seed ............................... 1.5 

Cotton, gin byproducts ............... 15 

Fruit, pome, group 11–10 ........... 0.50 

Fruit, stone, group 12 ................. 4.0 

Grain, aspirated fractions ........... 30 

Millet, spp. .................................. 0.80 

Nut, tree, group 14 ..................... 0.06 

Oat, forage .................................. 40 

Oat, grain .................................... 0.15 

Oat, hay ...................................... 80 

Oat, straw ................................... 1.0 

Pea and bean, dried shelled, except soybean, subgroup 6C .... 0.40 

Peanut ........................................ 0.04 

Peanut, hay ................................ 30 

Peanut, refined oil ...................... 0.06 

Pistachio ..................................... 0.06 

Potato, processed potato waste 0.20 

Rye, forage ................................. 40 

Rye, grain ................................... 0.15 

Rye, straw ................................... 1.0 

Sorghum, forage ......................... 40 

Sorghum, grain, grain ................. 0.80 

Sorghum, stover ......................... 15 

Soybean, seed ............................ 0.40 

Sunflower, seed .......................... 1.5 

Teosinte, grain ............................ 0.15 

Tomato, paste ............................. 3.5 

Triticale, forage ........................... 40 

Triticale, grain ............................. 0.15 

Triticale, hay ............................... 80 

Triticale, straw ............................ 1.0 

Vegetable, bulb, group 3–07 ...... 3.0 

Vegetable, cucurbit, group 9 ...... 0.60 

Vegetable, foliage of legume, 

group 7, hay ............................ 200 

Vegetable, foliage of legume, 

group 7, vines/forage .............. 50 

Vegetable, fruiting, group 8–10 .. 3.0 

Vegetable, leafy, except brassica, group 4 ........................... 30 

Vegetable, leaves of root and 

tuber, group 2 ......................... 50 

Vegetable, legume, edible podded, subgroup 6A ................... 4.0 

Vegetable, legume, succulent 

shelled, subgroup 6B .............. 0.40 

Vegetable, root, subgroup 1B, 

except sugar beet ................... 3.0 

Vegetable, tuber and corm, subgroup 1C ................................. 0.06 

Wheat, forage ............................. 40 

Wheat, grain ............................... 0.15 

Wheat, hay ................................. 80 

Wheat, milled byproducts ........... 0.30 

Wheat, straw ............................... 1.0 

(2) Tolerances are established for 

residues of penthiopyrad, including its 

metabolites and degradates, in or on the 

commodities in the table below. 

Compliance with the tolerance levels 

specified below is to be determined by 

measuring only the sum of 

penthiopyrad (N-[2-(1,3-dimethylbutyl)- 

3-thienyl]-1-methyl-3-(trifluoromethyl)- 

1H-pyrazole-4-carboxamide) and its 

metabolite (1-methyl-3-trifluoromethyl1H-pyrazole-4-carboxamide), calculated 

as the stoichiometric equivalent of 

penthiopyrad, in or on the commodity. 

Commodity Parts per 

million 

Cattle, fat .................................... 0.03 

Cattle, meat ................................ 0.03 

Cattle, meat byproducts ............. 0.09 

Goat, fat ...................................... 0.03 

Goat, meat .................................. 0.03 

Goat, meat byproducts ............... 0.09 

Horse, fat .................................... 0.03 

Horse, meat ................................ 0.03 

Horse, meat byproducts ............. 0.09 

Milk ............................................. 0.02 

Sheep, fat ................................... 0.03 

Sheep, meat ............................... 0.03 

Sheep, meat byproducts ............ 0.09 

(b) Section 18 emergency exemptions. 

[Reserved] 

(c) Tolerances with regional 

registrations. [Reserved] 

(d) Indirect or inadvertent residues. 

[Reserved] 

[FR Doc. 2012–5650 Filed 3–8–12; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 51 and 54 

[WC Docket Nos. 10–90, 07–135, 05–337, 

03–109; GN Docket No. 09–51; CC Docket 

Nos. 01–92, 96–45; WT Docket No. 10–208; 

DA 12–147] 

Connect America Fund; a National 

Broadband Plan for Our Future; 

Establishing Just and Reasonable 

Rates for Local Exchange Carriers; 

High-Cost Universal Service Support 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: In this document, the Federal 

Communications Commission clarifies 

certain rules. This document also 

modifies certain initial filing deadlines 

required to comply with the Paperwork 

Reduction Act requirements, and finds 

good cause to delete certain rules that 

are now obsolete. 

DATES: Effective April 9, 2012, except 

for §§ 54.313(a)(9), 54.313(f)(2), and 

54.1003(b), which contain information 

collection requirements that are not 

effective until approved by the Office of 

Management and Budget. The Federal 

Communications Commission will 

publish a document in the Federal 

Register announcing the effective date 

for those sections. 


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14298 Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations 

FOR FURTHER INFORMATION CONTACT: 

Amy Bender, Wireline Competition 

Bureau, (202) 418–1469, Victoria 

Goldberg, Wireline Competition Bureau, 

(202) 418–7353, and Margaret Wiener, 

Wireless Telecommunications Bureau, 

(202) 418–2176 or TTY: (202) 418–0484. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Wireline Competition 

Bureau and the Wireless 

Telecommunications Bureau’s Order in 

WC Docket Nos. 10–90, 07–135, 05–337, 

03–109; GN Docket No. 09–51; CC 

Docket Nos. 01–92, 96–45; WT Docket 

No. 10–208; DA 12–147, released on 

February 3, 2012. The full text of this 

document is available for public 

inspection during regular business 

hours in the FCC Reference Center, 

Room CY–A257, 445 12th Street SW., 

Washington, DC 20554. Or at the 

following Internet address: http:// 

transition.fcc.gov/Daily_Releases/ 

Daily_Business/2012/db0203/DA-12- 

147A1.pdf. 

I. Introduction 

1. In the USF/ICC Transformation 

Order, 76 FR 76623, December 8, 2011, 

the Commission delegated to the 

Wireline Competition Bureau and the 

Wireless Telecommunications Bureau 

(Bureaus) the authority to revise and 

clarify rules as necessary to ensure that 

the reforms adopted in the Order are 

properly reflected in the rules. In this 

Order, the Bureaus act pursuant to this 

delegated authority to revise and clarify 

certain rules, and act pursuant to 

authority delegated to the Bureaus in 

§§ 0.91, 0.131, 0.201(d), 0.291, and 

0.331 of the Commission’s rules to 

clarify certain rules. This Order also 

modifies certain initial filing deadlines 

required by § 54.313 of the 

Commission’s rules as necessary to 

comply with the Paperwork Reduction 

Act (PRA) requirements, and finds good 

cause to delete certain rules that are 

now obsolete. 

2. The Bureaus note that petitions for 

reconsideration of certain aspects of the 

USF/ICC Transformation Order are 

pending before the Commission and 

will be addressed by the Commission in 

due course. Nothing in this Order is 

intended to prejudge Commission action 

with respect to those petitions. 

II. Discussion 

A. Universal Service 

3. Rate Floor. In the USF/ICC 

Transformation Order, the Commission 

adopted a rule reducing high-cost 

support for incumbent carriers receiving 

high-cost support that charged local 

rates below a nationwide rate 

benchmark. The Order ‘‘reduce[s], on a 

dollar-for-dollar basis, HCLS and CAF 

phase I support,’’ but excludes Interstate 

Common Line Support (ICLS) on the 

basis that it supports ‘‘interstate rates, 

not intrastate end-user rates.’’ The Order 

does not specify how the offsets would 

apply to frozen high-cost support 

provided pursuant to CAF Phase I, 

which commingles intrastate and 

interstate support. For the purposes of 

calculating certain interstate rates, 

frozen CAF Phase I support remains 

attributable to the interstate jurisdiction 

to the extent that the frozen CAF Phase 

I support replaced Interstate Access 

Support. Moreover, the codified rule, 

§ 54.318(d), makes clear that this rate 

reduction only applies to HCLS and 

HCMS. In this Order, the Wireline 

Competition Bureau (Bureau) amends 

§ 54.318(d) to clarify that support 

reductions associated with the rate floor 

will offset frozen CAF Phase I support 

only to the extent that the recipient’s 

frozen CAF Phase I support replaced 

HCLS and HCMS. The offset does not 

apply to frozen CAF Phase I support to 

the extent that it replaced IAS and ICLS. 

4. Reporting Requirements for HighCost Recipients. In the USF/ICC 

Transformation Order, the Commission 

adopted or modified several reporting 

requirements for eligible 

telecommunications carriers (ETCs) that 

receive high-cost support. In particular, 

the Commission adopted a rule, codified 

in § 54.313, requiring all ETCs receiving 

high-cost support to file annual reports 

regarding compliance with the 

Commission’s rules and progress toward 

its universal service goals. Several of 

these requirements had previously 

applied only to federally designated 

ETCs, under former § 54.209. The Order 

states that § 54.313 annual reports will 

be due annually by April 1, beginning 

on April 1, 2012. As specified in the 

Order, however, any new reporting 

requirements are not effective until 

Federal Register publication of approval 

by the Office of Management and 

Budget of the associated information 

collections under the Paperwork 

Reduction Act (PRA). The Commission 

delegated authority to the Bureau to 

modify initial filing deadlines required 

by § 54.313 as necessary to comply with 

the PRA requirements. In this Order, the 

Bureau clarifies several aspects of those 

reporting requirements and provides 

guidance regarding the associated 

timing of such requirements. 

5. First, the Commission stated in the 

USF/ICC Transformation Order that all 

ETCs are required to file a new five-year 

build-out plan by April 1, 2013, to 

account for the new broadband 

obligations established in the Order. 

The Bureau hereby amends 

§ 54.313(a)(1) to clarify this 

requirement. 

6. ETCs previously designated by the 

Commission are still required to file a 

progress report on their existing fiveyear build-out plans currently on file 

with the Commission but, this year, the 

progress reports will be due April 1 

rather than October 1. On April 1, 2013, 

those ETCs are required to file with the 

Commission a new five-year build-out 

plan that accounts for the new 

broadband obligations (which will 

replace the five-year build-out plan 

currently on file with the Commission) 

and to send copies to the relevant state 

commission, relevant authority in a U.S. 

Territory, or Tribal government, as 

appropriate. And beginning April 1, 

2014, those ETCs are required to file 

annual progress reports on their new 

five-year build-out plans. 

7. ETCs that have been designated by 

a state commission should continue to 

comply with state requirements, if any, 

regarding service improvement plans. If 

a state commission previously required 

an ETC to file a service quality 

improvement plan or annual updates 

with the state commission then the ETC 

should do so, but that ETC is not 

required to send a copy to the 

Commission. Similarly, ETCs that are 

not required by a state commission to 

file a quality improvement plan with the 

state commission are not required to file 

a plan with the Commission this year. 

However, on April 1, 2013, all statedesignated ETCs are required to file 

with the Commission five-year build-out 

plans that account for the new 

broadband obligations adopted in the 

USF/ICC Transformation Order and to 

send copies to the relevant state 

commission, relevant authority in a U.S. 

Territory, or Tribal government, as 

appropriate. And beginning April 1, 

2014 all state-designated ETCs are 

required to file annual progress reports 

on their five-year build-out plans. 

8. In the Order, the Commission 

explained that the five-year build-out 

plan filed on April 1, 2013 should be 

consistent with § 54.202(a)(1)(ii). That 

is, it should describe with specificity 

proposed improvements or upgrades to 

the ETC’s network throughout its 

service area, including estimating the 

area and population that will be served 

as a result of improvements. This 

requirement to file a new five-year 

build-out plan only applies to ETCs that 

receive high-cost support. 

9. Second, § 54.313(a)(2)–(6) requires 

ETCs annually to file information 

concerning outages, unfulfilled service 

requests, and complaints, among other 

things. We clarify that ETCs that have 

been designated by the Commission are 


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Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations 14299 

still required to file that information 

with respect to their provision of voice 

service during 2011. But this year, it 

will be due April 1 rather than October 

1. Beginning April 1, 2013, and 

annually thereafter, those ETCs must 

file such information separately broken 

out for both voice and broadband 

service. 

10. We recognize that ETCs that have 

been designated by a state commission 

may not have been required to collect 

and report this information with respect 

to their provision of voice service 

during 2011. If state-designated ETCs 

did not collect this information during 

2011, then it would be impossible for 

them to report it to the Commission in 

2012, and they are not required to do so. 

If state-designated ETCs are subject to a 

state requirement to report some or all 

of this information annually to the state, 

however, then they should file a copy of 

any relevant information with the 

Commission in 2012. The Bureau will 

provide impacted ETCs sufficient time 

after PRA approval is obtained to file 

the relevant information. Beginning 

April 1, 2013, and annually thereafter, 

state-designated ETCs must file all of 

the information required by 

§ 54.313(a)(2)–(6), and such information 

must be separately broken out for both 

voice and broadband service. 

11. Third, the USF/ICC 

Transformation Order requires that 

high-cost support recipients provide 

information demonstrating that they 

have engaged with Tribal governments 

in their supported areas, but does not 

specify a date for doing so. The Order 

also delegated to the Office of Native 

Affairs and Policy (ONAP), in 

coordination with WCB and WTB, the 

authority to develop processes to guide 

support recipients in such engagements. 

Because it will take some time to 

finalize these processes and for affected 

ETCs to comply with those 

requirements, the Bureau clarifies that 

the initial deadline for reporting 

information pursuant to this 

requirement is April 1, 2013 and 

annually thereafter. That is, ETCs are 

required to undertake their Tribal 

engagement obligations in 2012 after 

ONAP provides engagement process 

guidance, which will be the substance 

of the reporting beginning April 1, 2013 

and annually thereafter. 

12. Fourth, the USF/ICC 

Transformation Order requires high-cost 

recipients to annually report ownership 

information, but does not specify a date 

for doing so. The Bureau will provide 

affected ETCs sufficient time after PRA 

approval is obtained to file the required 

information. Beginning in 2013, and 

annually thereafter, the information 

must be filed by April 1. 

13. Fifth, the USF/ICC Transformation 

Order adopts financial reporting 

requirements for privately held rate-ofreturn carriers and specifies that this 

information must be reported beginning 

April 1, 2012, subject to PRA approval. 

The Bureau clarifies that the April 1 

reporting date will not be applicable if 

PRA approval is not received prior to 

April 1 with sufficient time for 

respondents to comply. The Bureau will 

provide sufficient time once PRA 

approval is obtained for affected ETCs to 

comply with this requirement. 

14. Sixth, the USF/ICC 

Transformation Order specified that 

privately held rate-of-return carriers that 

receive loans from the Rural Utilities 

Service (RUS) could satisfy their 

financial reporting obligation by 

providing electronic copies of their 

annual RUS reports to the Commission. 

The Bureau modifies § 54.313(f)(2) to 

reflect the Commission’s intent that 

such companies may file their RUS 

reports in lieu of an audited financial 

statement. 

15. Application of the Per-Line Cap to 

Competitive Eligible 

Telecommunications Carrier (ETC) 

Phase Down. In the USF/ICC 

Transformation Order, the Commission 

adopted an annual baseline for the 

phase down of competitive ETC support 

equal to the lesser of the amount of 

support the competitive ETC received in 

2011 or $3000 per loop (which is $250 

per line per month). In this Order, the 

Bureau clarifies that the $3000 per-loop 

limit is applicable to competitive ETCs 

at the incumbent study area level. For 

example, if a competitive ETC receives 

an average of $2000 per loop per year 

serving multiple incumbent study areas, 

but it receives $3500 per loop per year 

in one of the study areas, the cap will 

constrain the competitive ETC’s support 

in that study area. This clarification 

ensures that, consistent with the 

Commission’s stated rationale, the 

competitive ETCs’ baselines are 

commensurate with adjustments to the 

support provided to incumbents serving 

the same areas. 

16. Elimination of Section 54.315 

(Disaggregation). Section 54.315 of the 

Commission’s rules permits incumbent 

local exchange carriers to target the 

high-cost universal service support they 

receive to specific areas within their 

study areas based on the relative costs 

of serving those areas. This 

disaggregation of support was intended 

to ensure that competitive ETCs receive 

an appropriate per-line support amount 

for the various areas within the 

incumbent study area, rather than a 

single, undifferentiated per-line support 

amount for the entire study area. 

Because the Commission eliminated the 

identical support rule in the USF/ICC 

Transformation Order and competitive 

ETCs therefore no longer receive 

support based on incumbent support 

amounts, the Commission’s 

disaggregation rule is now obsolete. 

Because this rule is obsolete, we find 

good cause to delete it without notice 

and comment. 

17. Elimination of Quarterly Line 

Counts in Areas Served by a 

Competitive ETC. In the USF/ICC 

Transformation Order, the Commission 

eliminated the identical support rule 

and adopted a process to phase down 

competitive ETC support. The 

Commission also eliminated the 

requirement that competitive ETCs, 

except those serving remote areas of 

Alaska, file quarterly line counts. In this 

Order, the Bureau amends § 54.903(a)(2) 

to eliminate requirements for certain 

quarterly line count filings by 

incumbent carriers that were necessary 

only for the purpose of calculating 

support for competitive ETCs pursuant 

to the identical support rule. Carriers 

filing quarterly line counts pursuant to 

§ 54.903(a)(2) solely because of the 

presence of a competitive ETC will no 

longer be required to file line counts on 

a quarterly basis. Carriers may continue 

to file voluntary updates of line counts. 

Because the quarterly line filing 

requirement is obsolete, the Bureau 

finds good cause to change the 

Commission’s rules without notice and 

comment. 

18. Elimination of Average Schedule 

Formula for Local Switching Support. In 

the USF/ICC Transformation Order, the 

Commission eliminated local switching 

support (LSS) but did not delete 

§ 54.301, governing LSS, from its rules 

because several elements continue to be 

applicable for the purposes of truing up 

support for prior years. Pursuant to 

§ 54.301(f), the Administrator is 

required each year to file a proposed 

formula for calculating LSS for average 

schedule companies in the next year. 

Because LSS calculations will not be 

required on a going forward basis, this 

requirement is obsolete and the Bureau 

deletes § 54.301(f). Because this rule is 

obsolete, we find good cause to delete 

it without notice and comment. 

19. Mobility Fund Phase I Eligibility— 

Access to Spectrum Requirement. In the 

USF/ICC Transformation Order, the 

Commission required that any applicant 

for a Mobility Fund Phase I auction 

have access to the spectrum necessary to 

fulfill any obligations related to support. 

The Commission further required that 

such access through a license or leasing 


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14300 Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations 

arrangement be in effect prior to 

auction. In order to facilitate auction 

participation, the Commission 

concluded that a party could fulfill the 

spectrum access requirement by 

acquiring spectrum access that is 

contingent on obtaining support in the 

auction. The Commission further found 

that ‘‘failing to ensure spectrum access, 

on at least a conditional basis, prior to 

entering a Mobility Fund auction would 

be inconsistent with the serious 

undertakings implicit in bidding for 

support.’’ This eligibility requirement is 

codified in § 54.1003(b). This Order 

amends the rule to clarify that an 

applicant must have obtained any 

Commission approvals necessary for the 

spectrum access prior to submitting an 

application to participate in competitive 

bidding. 

B. Intercarrier Compensation 

20. Recovery for Rate-of-Return 

Carriers. In the USF/ICC Transformation 

Order, the Commission adopted a 

transitional recovery mechanism 

allowing carriers limited recovery of 

revenues reduced as a result of that 

Order. The Commission specified a 

baseline from which a rate-of-return 

incumbent local exchange carrier’s 

Eligible Recovery would be calculated, 

and specified that this baseline will 

decrease by five percent per year. 

Specifically, the Order correctly stated 

that a rate-of-return carrier’s Eligible 

Recovery would be determined by 

reducing its 2011 Rate-of-Return 

Baseline by a five percent adjustment 

factor before subtracting its ‘‘ICC 

recovery opportunity’’ for that year. 

Under the rules, however, a rate-ofreturn carrier’s Eligible Recovery would 

be overstated because the five percent 

adjustment factor would not be applied 

until after subtracting its ICC recovery 

opportunity for that year. Applying the 

adjustment factor after reducing a 

carrier’s baseline by its ICC recovery 

opportunity would increase the carrier’s 

Eligible Recovery, entitling it to increase 

charges on end-users and/or to increase 

its claim to CAF funding, and as a result 

would reduce the effective adjustment 

below the amount the Commission 

specified in the Order. As adopted, 

§§ 51.917(d)(1)(i)(3) and (4) address the 

respective components of eligible 

recovery (Transitional Intrastate Access 

Service, interstate switched access, and 

net reciprocal compensation (including 

both CMRS and non-CMRS reciprocal 

compensation)) in terms of reductions 

rather than recovery opportunity. 

Accordingly, the rule is corrected and 

revised as set forth in Appendix B to 

reflect the carrier’s intercarrier 

compensation recovery opportunity for 

the relevant year and to apply the Rateof-Return Carrier Baseline Adjustment 

Factor correctly. 

21. Monitoring Compliance with the 

Recovery Mechanism Rules. In the USF/ 

ICC Transformation Order, the 

Commission adopted measures to 

enable it to monitor compliance with 

the recovery mechanism adopted for 

incumbent LECs, requiring such carriers 

to file certain data on an annual basis. 

The Commission delegated to the 

Bureau the responsibility to develop 

and implement the data filing process. 

To minimize burdens, the USF/ICC 

Transformation Order noted that the 

Commission would ‘‘ensure that the 

data filed with USAC [(the Universal 

Service Administrative Company), for 

the purpose of justifying a carrier’s 

ability to impose an ARC] is consistent 

with our request [for Recovery 

Mechanism compliance monitoring 

data], so that carriers can use the same 

format for both filings.’’ However, 

because the Commission found that data 

for monitoring compliance may be filed 

at the holding company level, whereas 

the data needed for USAC will be at the 

study area level, the filings cannot be 

the same. Thus, we clarify that the data 

filing requirements for Recovery 

Mechanism compliance monitoring and 

for ARC justification will be as 

consistent as possible, and will be in the 

same or similar format in order to 

reduce or eliminate burdens associated 

with filing wherever possible. 

22. Prospective Treatment of VoIP 

Traffic. In the USF/ICC Transformation 

Order, the Commission addressed the 

prospective treatment of VoIP–PSTN 

traffic by adopting a transitional 

compensation framework for such 

traffic. In so doing, the Commission 

adopted the transitional rules specifying 

the default compensation for VoIP 

PSTN-traffic. With regard to ‘‘toll’’ 

traffic (interstate and intrastate calls), 

the Commission adopted rules 

specifying that the default charges for 

‘‘toll’’ VoIP–PSTN traffic will be equal 

to interstate access rates applicable to 

non-VoIP traffic, both in terms of the 

rate level and rate structure. We clarify 

that the prospective VoIP–PSTN 

framework applies to the interstate rate 

as well as the interstate structure, 

including both per-minute (usage 

sensitive) and flat-rated (dedicated) 

charges. 

23. To implement the VoIP–PSTN 

framework, the Commission encouraged 

carriers to negotiate contracts to 

implement all intercarrier compensation 

obligations. At the same time, the 

Commission permitted carriers to 

include, in their intrastate tariffs, a 

default means of determining which 

calls are subject to the VoIP–PSTN 

framework. In particular, to address 

concerns that carriers could not identify 

which calls originate and/or terminate 

in IP format, the Commission permitted 

LECs ‘‘to specify in its intrastate tariff 

that the default percentage of traffic 

subject to the VoIP–PSTN framework is 

equal to the percentage of VoIP 

subscribers in the state based on the 

Local Competition Report, as released 

periodically.’’ We clarify that this 

default percentage is just one means by 

which a carrier could identify the 

amount of traffic subject to the VoIP– 

PSTN framework, and carriers are free 

to utilize traffic studies, or other 

reasonable and auditable metrics to 

determine the percentage of traffic 

subject to the VoIP–PSTN framework. 

24. Operation of VoIP Rules When 

Interstate Access Rates Exceed 

Intrastate Access Rates. The 

Commission adopted a bill-and-keep 

methodology for all traffic and began the 

implementation process by providing a 

measured transition to reduce the 

terminating rates for most rate elements 

to bill-and-keep. In so doing, the 

Commission made clear that, ‘‘in cases 

where a provider’s interstate 

terminating access rates are higher than 

its intrastate terminating access rates, 

intrastate rate reductions shall begin to 

occur at the stage of the transition in 

which interstate rates come to parity 

with intrastate rate levels.’’ Thus, the 

Commission made clear that it did not 

intend, under any circumstances, for 

rates to increase by virtue of its reforms. 

Indeed, the Commission also capped 

most rates as of the effective date of the 

rules, or December 29, 2011, to ensure 

that no rates increased after the date of 

the Order. However, in instances where 

intrastate rates are lower than interstate 

rates, the Commission did not explain 

how the prospective VoIP rules would 

operate—whether the interstate rate 

would apply in the intrastate tariff or 

whether the intrastate rate, which is 

lower, would apply. Parties have 

notified us that, absent a clarification, 

intrastate tariffs could have a higher rate 

for VoIP traffic than other intrastate 

rates. Such an intrastate rate disparity 

was not the Commission’s intent and 

could lead to the very arbitrage 

activities that the USF/ICC 

Transformation Order intended to 

eliminate. The Commission held, for 

example, VoIP–PSTN traffic ‘‘will pay 

most of the same rates as all other traffic 

in the second year of reform.’’ Given the 

mechanics of the transition, this would 

not be true if VoIP–PSTN traffic were 

subject to higher intrastate access 

charges than other traffic, however. 


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Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations 14301 

Thus, we clarify that, in the limited 

circumstance of implementing the new 

intercarrier compensation for VoIP 

regime adopted in the USF/ICC 

Transformation Order, when a carrier’s 

intrastate access rate is lower than its 

corresponding interstate access rate, that 

carrier may not, in its intrastate tariff, 

include a rate for toll VoIP–PSTN traffic 

that is higher than its intrastate access 

rate. 

25. Access Stimulation and Previous 

Rulings on End Users. In the USF/ICC 

Transformation Order, the Commission 

adopted revisions to its interstate 

switched access charge rules to address 

access stimulation. Prior to the USF/ICC 

Transformation Order, the Commission 

adopted several orders resolving 

complaints concerning access 

stimulation under preexisting rules and 

compliance with the Communications 

Act. We clarify that the USF/ICC 

Transformation Order complements 

these previous decisions, and nothing in 

the USF/ICC Transformation Order 

should be construed as overturning or 

superseding these previous Commission 

decisions. 

26. Access Stimulation and Fee 

Arrangements. In the USF/ICC 

Transformation Order, the Commission 

adopted rules requiring refiling of 

interstate access tariffs in certain 

circumstances when a local exchange 

carrier (LEC) is engaged in access 

stimulation. In particular, the 

Commission adopted a rule defining 

when such tariffs must be refiled. In 

relevant part, the Commission explained 

that a LEC must have entered into an 

access revenue sharing agreement 

‘‘whether express, implied, written or 

oral, that, over the course of the 

agreement, would directly or indirectly 

result in a net payment to the other 

party (including affiliates) to the 

agreement, in which payment by the 

rate-of-return LEC or competitive LEC is 

based on the billing or collection of 

access charges from interexchange 

carriers or wireless carriers.’’ 

27. We clarify that any arrangement 

between a LEC and another party, 

including affiliates, that results in the 

generation of switched access traffic to 

the LEC and provides for the net 

payment of consideration of any kind, 

whether fixed fee or otherwise, to the 

other party, including an affiliate, is 

considered to be ‘‘based upon the billing 

or collection of access charges.’’ 

28. Rural Transport Rule. In the USF/ 

ICC Transformation Order, the 

Commission adopted an ‘‘interim 

default rule allocating responsibility for 

transport costs applicable to non-access 

traffic exchanged between CMRS 

providers and rural, rate-of-return 

regulated LECs,’’ including when a 

CMRS provider selects an 

interconnection point outside the LEC’s 

service area. We clarify that, in adopting 

the interim default rule, the 

Commission did not intend to affect the 

existing rules governing points of 

interconnection (POIs) between CMRS 

providers and price cap carriers. Indeed, 

the Commission sought additional 

comment on issues concerning POI 

obligations in the Further Notice of 

Proposed Rulemaking, 76 FR 78384, 

December 16, 2011. 

III. Procedural Matters 

A. Paperwork Reduction Act 

29. Although this document clarifies 

several existing information collection 

requirements, it does not contain new or 

modified information collection 

requirements subject to the Paperwork 

Reduction Act of 1995 (PRA), Public 

Law 104–13. In addition, therefore, it 

does not contain any new or modified 

information collection burden for small 

business concerns with fewer than 25 

employees, pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107–198, see 44 U.S.C. 

3506(c)(4). 

B. Final Regulatory Flexibility Act 

Certification 

30. Final Regulatory Flexibility 

Certification. The Regulatory Flexibility 

Act of 1980, as amended (RFA) requires 

that a regulatory flexibility analysis be 

prepared for rulemaking proceedings, 

unless the agency certifies that ‘‘the rule 

will not have a significant economic 

impact on a substantial number of small 

entities.’’ The RFA generally defines 

‘‘small entity’’ as having the same 

meaning as the terms ‘‘small business,’’ 

‘‘small organization,’’ and ‘‘small 

governmental jurisdiction.’’ In addition, 

the term ‘‘small business’’ has the same 

meaning as the term ‘‘small business 

concern’’ under the Small Business Act. 

A small business concern is one which: 

(1) Is independently owned and 

operated; (2) is not dominant in its field 

of operation; and (3) satisfies any 

additional criteria established by the 

Small Business Administration (SBA). 

31. This Order clarifies, but does not 

otherwise modify, the USF/ICC 

Transformation Order. These 

clarifications do not create any burdens, 

benefits, or requirements that were not 

addressed by the Final Regulatory 

Flexibility Analysis attached to USF/ 

ICC Transformation Order. Therefore, 

we certify that the requirements of this 

Order will not have a significant 

economic impact on a substantial 

number of small entities. The 

Commission will send a copy of the 

Order including a copy of this final 

certification, in a report to Congress 

pursuant to the Small Business 

Regulatory Enforcement Fairness Act of 

1996, see 5 U.S.C. 801(a)(1)(A). In 

addition, the Order and this certification 

will be sent to the Chief Counsel for 

Advocacy of the Small Business 

Administration, and will be published 

in the Federal Register. See 5 U.S.C. 

605(b). 

C. Congressional Review Act 

32. The Commission will send a copy 

of this Order to Congress and the 

Government Accountability Office 

pursuant to the Congressional Review 

Act. 

IV. Ordering Clauses 

33. Accordingly, it is ordered, that 

pursuant to the authority contained in 

sections 1, 2, 4(i), 201–206, 214, 218– 

220, 251, 252, 254, 256, 303(r), 332, and 

403 of the Communications Act of 1934, 

as amended, and section 706 of the 

Telecommunications Act of 1996, 47 

U.S.C. 151, 152, 154(i), 201–206, 214, 

218–220, 251, 252, 254, 256, 303(r), 332, 

403, 1302, and pursuant to §§ 0.91, 

0.131, 0.201(d), 0.291, 0.331, 1.3, and 

1.427 of the Commission’s rules, 47 CFR 

0.91, 0.131, 0.201(d), 0.291, 0.331, 1.3, 

1.427 and pursuant to the delegations of 

authority in paragraphs 581 and 1404 of 

FCC 11–161 (rel. Nov. 18, 2011), that 

this Order is adopted, effective April 9, 

2012, except for those rules and 

requirements involving Paperwork 

Reduction Act burdens, which shall 

become effective immediately upon 

announcement in the Federal Register 

of OMB approval. 

34. It is further ordered, that Parts 51 

and 54 of the Commission’s rules, 47 

CFR Parts 51, 54, are amended as set 

forth below, and such rule amendments 

shall be effective April 9, 2012, except 

to the extent they contain information 

collections subject to PRA review. The 

rules that contain information 

collections subject to PRA review will 

become effective upon announcement in 

the Federal Register of OMB approval 

and an effective date of the rule(s). 

35. It is further ordered, that the 

Commission shall send a copy of this 

Order to Congress and the Government 

Accountability Office pursuant to the 

Congressional Review Act, see 5 U.S.C. 

801(a)(1)(A). 

36. It is further ordered, that the 

Commission’s Consumer and 

Governmental Affairs Bureau, Reference 

Information Center, shall send a copy of 

this Order, including the Final 

Regulatory Flexibility Certification, to 


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14302 Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations 

the Chief Counsel for Advocacy of the 

Small Business Administration. 

List of Subjects 

47 CFR Part 51 

Communications common carriers, 

Telecommunications. 

47 CFR Part 54 

Communications common carriers, 

Reporting and recordkeeping 

requirements, Telecommunications, 

Telephone. 

Federal Communications Commission. 

Sharon E. Gillett, 

Chief, Wireline Competition Bureau. 

Final Rules 

For the reasons discussed in the 

preamble, the Federal Communications 

Commission amends 47 CFR parts 51 

and 54 to read as follows: 

PART 51—INTERCONNECTION 

■ 1. The authority citation for part 51 

continues to read as follows: 

Authority: Sections 1–5, 7, 201–05, 207– 

09, 218, 220, 225–27, 251–54, 256, 271, 

303(r), 332, 706 of the Telecommunication 

Act of 1996, 48 Stat. 1070, as amended, 1077; 

47 U.S.C. 151–55, 157, 201–05, 207–09, 218, 

220, 225–27, 251–54, 256, 271, 303(r), 332, 

1302, 47 U.S.C. 157 note, unless otherwise 

noted. 

■ 2. Amend § 51.917 by revising 

paragraphs (d)(1)(i) through (d)(1)(iii) to 

read as follows: 

§ 51.917 Revenue recovery for rate-ofreturn carriers. 

* * * * * 

(d) * * * 

(1) * * * 

(i) Beginning July 1, 2012, a Rate-ofReturn Carrier’s eligible recovery will be 

equal to the 2011 Rate-of-Return Carrier 

Base Period Revenue multiplied by the 

Rate-of-Return Carrier Baseline 

Adjustment Factor less: 

(A) The Expected Revenues from 

Transitional Intrastate Access Service 

for the year beginning July 1, 2012, 

reflecting forecasted demand multiplied 

by the rates in the rate transition 

contained in § 51.909; 

(B) The Expected Revenues from 

interstate switched access for the year 

beginning July 1, 2012, reflecting 

forecasted demand multiplied by the 

rates in the rate transition contained in 

§ 51.909; and 

(C) Expected Net Reciprocal 

Compensation Revenues for the year 

beginning July 1, 2012 using the target 

methodology required by § 51.705. 

(ii) Beginning July 1, 2013, a Rate-ofReturn Carrier’s eligible recovery will be 

equal to the 2011 Rate-of-Return Carrier 

Base Period Revenue multiplied by the 

Rate-of-Return Carrier Baseline 

Adjustment Factor less: 

(A) The Expected Revenues from 

Transitional Intrastate Access Service 

for the year beginning July 1, 2013, 

reflecting forecasted demand multiplied 

by the rates in the rate transition 

contained in § 51.909; 

(B) The Expected Revenues from 

interstate switched access for the year 

beginning July 1, 2013, reflecting 

forecasted demand multiplied by the 

rates in the rate transition contained in 

§ 51.909; and 

(C) Expected Net Reciprocal 

Compensation Revenues for the year 

beginning July 1, 2013 using the target 

methodology required by § 51.705. 

(iii) Beginning July 1, 2014, a Rate-ofReturn Carrier’s eligible recovery will be 

equal to the 2011 Rate-of-Return Carrier 

Base Period Revenue multiplied by the 

Rate-of-Return Carrier Baseline 

Adjustment Factor less: 

(A) The Expected Revenues from 

Transitional Intrastate Access Service 

for the year beginning July 1, 2014, 

reflecting forecasted demand multiplied 

by the rates in the rate transition 

contained in § 51.909 (including the 

reduction in intrastate End Office 

Switched Access Service rates), adjusted 

to reflect the True-Up Adjustment for 

Transitional Intrastate Access Service 

for the year beginning July 1, 2012; 

(B) The Expected Revenues from 

interstate switched access for the year 

beginning July 1, 2014, reflecting 

forecasted demand multiplied by the 

rates in the rate transition contained in 

§ 51.909, adjusted to reflect the True-Up 

Adjustment for Interstate Switched 

Access for the year beginning July 1, 

2012; and 

(C) Expected Net Reciprocal 

Compensation Revenues for the year 

beginning July 1, 2014 using the target 

methodology required by § 51.705, 

adjusted to reflect the True-Up 

Adjustment for Reciprocal 

Compensation for the year beginning 

July 1, 2012. 

(D) An amount equal to True-up 

Revenues for Access Recovery Charges 

less Expected Revenues for Access 

Recovery Charges for the year beginning 

July 1, 2012. 

* * * * * 

PART 54—UNIVERSAL SERVICE 

■ 3. The authority citation for part 54 

continues to read as follows: 

Authority: 47 U.S.C. 151, 154(i), 201, 205, 

214, 219, 220, 254, 303(r), 403, and 1302 

unless otherwise noted. 

§ 54.301 [Amended] 

■ 4. In § 54.301, remove paragraph (f). 

■ 5. Amend § 54.307 by revising 

paragraph (e)(1)(ii) to read as follows: 

§ 54.307 Support to a competitive eligible 

telecommunications carrier. 

* * * * * 

(e) * * * 

(1) * * * 

(ii) For the purpose of calculating the 

$3,000 per line limit, the average of 

lines reported by a competitive eligible 

telecommunication carrier pursuant to 

line count filings required for December 

31, 2010, and December 31, 2011 shall 

be used. The $3,000 per line limit shall 

be applied to support amounts 

determined for each incumbent study 

area served by the competitive eligible 

telecommunications carrier. 

* * * * * 

■ 6. Amend § 54.313 by revising 

paragraphs (a)(9) and (f)(2) to read as 

follows: 

§ 54.313 Annual reporting requirements 

for high-cost recipients. 

(a) * * * 

(9) Beginning April 1, 2013. To the 

extent the recipient serves Tribal lands, 

documents or information 

demonstrating that the ETC had 

discussions with Tribal governments 

that, at a minimum, included: 

* * * * * 

(f) * * * 

(2) Privately held rate-of-return 

carriers only. A full and complete 

annual report of the company’s financial 

condition and operations as of the end 

of the preceding fiscal year, which is 

audited and certified by an independent 

certified public accountant in a form 

satisfactory to the Commission, and 

accompanied by a report of such audit. 

The annual report shall include balance 

sheets, income statements, and cash 

flow statements along with necessary 

notes to clarify the financial statements. 

The income statements shall itemize 

revenue, including non-regulated 

revenue, by its sources. In lieu of filing 

this annual report, any ETC that files 

annual financial reports with the Rural 

Utilities Service may instead file a copy 

of its report to the Rural Utilities 

Service. 

* * * * * 

§ 54.315 [Removed] 

■ 7. Section 54.315 is removed. 

■ 8. Amend § 54.318 by revising 

paragraph (d) to read as follows: 

§ 54.318 High-cost support; limitations on 

high-cost support. 

* * * * * 


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Federal Register / Vol. 77, No. 47 / Friday, March 9, 2012 / Rules and Regulations 14303 

(d) For purposes of this section, highcost support is defined as the support 

available pursuant to § 36.631 of this 

chapter and frozen high-cost support 

provided to price cap carriers to the 

extent it is based on support previously 

provided pursuant to §§ 36.631 or 

54.309 of this chapter. 

* * * * * 

■ 9. Amend § 54.903 by revising 

paragraph (a)(2) to read as follows: 

§ 54.903 Obligations of rate-of-return 

carriers and the Administrator. 

(a) * * * 

(2) A rate-of-return carrier may submit 

the information in paragraph (a) of this 

section in accordance with the schedule 

in § 36.612 of this chapter, even if it is 

not required to do so. If a rate-of-return 

carrier makes a filing under this 

paragraph, it shall separately indicate 

any lines that it has acquired from 

another carrier that it has not previously 

reported pursuant to paragraph (a) of 

this section, identified by customer 

class and the carrier from which the 

lines were acquired. 

* * * * * 

■ 10. Amend § 54.1003 by revising 

paragraph (b) to read as follows: 

§ 54.1003 Provider eligibility. 

* * * * * 

An applicant shall have access to 

spectrum in an area that enables it to 

satisfy the applicable performance 

requirements in order to receive 

Mobility Fund Phase I support for that 

area. The applicant shall certify, in a 

form acceptable to the Commission, that 

it has received any Commission 

approvals necessary for such access at 

the time it applies to participate in 

competitive bidding and at the time that 

it applies for support and that it will 

retain such access for five (5) years after 

the date on which it is authorized to 

receive support. Pending requests for 

such approvals are not sufficient to 

satisfy this requirement. 

* * * * * 

[FR Doc. 2012–5590 Filed 3–8–12; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 2, 4, 6, 13, 14, 15, 18, 

19, 26, 33, 36, 42, 52, and 53 

[FAC 2005–56; FAR Case 2010–015; Item 

I; Docket 2010–0015, Sequence 1] 

RIN 9000–AL97 

Federal Acquisition Regulation; 

Women-Owned Small Business 

(WOSB) Program 

Correction 

In rule document 2012–4475 

appearing on pages 12913 through 

12924 in the issue of Friday, March 2, 

2012, make the following corrections: 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

1. On page 12918 in § 52.212–3, in the 

first column, the fifteenth line from the 

top of the page is amended to read: 

‘‘Offeror Representations and 

Certifications—Commercial Items (APR 

2012)’’ 

2. On page 12918 in § 52.212–5, in the 

first column, the fifth line from the 

bottom of the page is amended to read: 

‘‘Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders—Commercial Items 

(APR 2012)’’ 

3. On page 12918 in § 52.219–29, in 

the second column, the first line from 

the top of the page is amended to read: 

‘‘(24) 52.219–29, Notice of Set-Aside for 

Economically Disadvantaged WomenOwned Small Business (EDWOSB) 

Concerns (APR 2012) (15 U.S.C. 

637(m)).’’ 

4. On page 12918 in § 52.219–30, in 

the second column, the third through 

sixth lines are amended to read: ‘‘(25) 

52.219–30, Notice of Set-Aside for 

Women-Owned Small Business (WOSB) 

Concerns Eligible Under the WOSB 

Program (APR 2012) (15 U.S.C. 

637(m)).’’ 

5. On page 12918 in § 52.219–1, in the 

second column, the sixteenth line from 

the top of the page is amended to read: 

‘‘Small Business Program 

Representations (APR 2012)’’ 

6. On page 12918 in § 52.219–29, in 

the second column, the third line from 

the bottom of the page is amended to 

read: ‘‘Notice of Set-Aside for 

Economically Disadvantaged WomenOwned Small Business Concerns (APR 

2012)’’ 

7. On page 12918 in § 52.219–30, in 

the third column, the twenty-fifth line 

from the top of the page is amended to 

read: ‘‘Notice of Set-Aside for WomenOwned Small Business Concerns 

Eligible Under the Women-Owned 

Small Business Program (APR 2012)’’ 

[FR Doc. C1–2012–4475 Filed 3–8–12; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 22, 25, and 52 

[FAC 2005–56; FAR Case 2011–030; Item 

VI; Docket 2011–0030, Sequence 1] 

RIN 9000–AM16 

Federal Acquisition Regulation; New 

Designated Country (Armenia) and 

Other Trade Agreements Updates 

Correction 

In rule document 2012–4495 

appearing on pages 12935 through 

12937 in the issue of Friday, March 2, 

2012, make the following corrections: 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

1. On page 12936 in § 52.212–5, in the 

second column, the eighteenth line from 

the bottom of the page is amended to 

read: ‘‘CONTRACT TERMS AND 

CONDITIONS REQUIRED TO 

IMPLEMENT STATUTES OR 

EXECUTIVE ORDERS—COMMERCIAL 

ITEMS (MAR 2012)’’. 

2. On page 12936 in § 52.222–19, in 

the second column, the thirteenth line 

from the bottom of the page is amended 

to read: ‘‘(27) 52.222–19, Child Labor— 

Cooperation with Authorities and 

Remedies (MAR 2012) (E.O. 13126).’’ 

3. On page 12936 in § 52.225–5, in the 

second column, the eleventh line from 

the bottom of the page is amended to 

read: ‘‘(41) 52.225–5, Trade Agreements 

(MAR 2012) (19 U.S.C. 2501, et seq., 

19 U.S.C. 3301 note).’’ 

4. On Page 12936 in § 52.213–4, in the 

third column,the fourth line from the 

top of the page is amended to read: 

‘‘TERMS AND CONDITIONS— 

SIMPLIFIED ACQUISITIONS (OTHER 

THAN COMMERCIAL ITEMS) (MAR 

2012)’’ 

5. On page 12936 in § 52.222–19, in 

the third column, the ninth line from 

the top of the page is amended to read: 

‘‘(i) 52.222–19, Child Labor— 


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