19522 Federal Register / Vol. 77, No. 63 / Monday, April 2, 2012 / Rules and Regulations 

Mills 

Robertson 

* * * * * 

[FR Doc. 2012–7728 Filed 3–30–12; 8:45 am] 

BILLING CODE 6325–39–P 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR Part 890 

48 CFR Parts 1602, 1615, 1632, and 

1652 

RIN 3206–AM39 

Federal Employees Health Benefits 

Program: New Premium Rating Method 

for Most Community Rated Plans 

AGENCY: U.S. Office of Personnel 

Management. 

ACTION: Final rule. 

SUMMARY: The U.S. Office of Personnel 

Management (OPM) is issuing a final 

regulation amending the Federal 

Employees Health Benefits (FEHB) 

regulations and also the Federal 

Employees Health Benefits Acquisition 

Regulation (FEHBAR). This final 

regulation makes minor changes to an 

interim final regulation on the same 

subject published June 29, 2011. The 

rule replaces the procedure by which 

premiums for community rated FEHB 

carriers are compared with the rates 

charged to a carrier’s similarly sized 

subscriber groups (SSSGs). The new 

procedure utilizes a medical loss ratio 

(MLR) threshold, analogous to that 

defined in both the Affordable Care Act 

(ACA), and in Department of Health and 

Human Services (HHS) regulations and 

replaces the outdated SSSG 

methodology with a more modern and 

transparent calculation while still 

ensuring that the FEHB Program is 

receiving a fair rate. This will result in 

a more streamlined process for plans 

and increased competition and plan 

choice for enrollees. The new process 

will apply to all community rated plans, 

except those required by their state to 

use traditional community rating (TCR). 

This new process will be phased in over 

two years, with optional participation 

for non-TCR plans in the first year. 

DATES: This final rule is effective May 2, 

2012. 

FOR FURTHER INFORMATION CONTACT: 

Louise Dyer, Senior Policy Analyst, 

(202) 606–0770. 

SUPPLEMENTARY INFORMATION: The Office 

of Personnel Management is issuing a 

final regulation to establish a new ratesetting procedure for most FEHB plans 

that are subject to community rating. 

This final rule makes minor changes to 

an interim final rule published June 29, 

2011 that replaced the current rate 

negotiation process with a requirement 

that most community rated plans meet 

an FEHB-specific medical loss ratio 

(MLR) target. Plans that are required to 

use traditional community rating (TCR) 

per their state regulator will be exempt 

from this new rate-setting procedure. 

This final rule makes several changes to 

the interim final rule published June 29, 

2011. First, OPM has removed a clause 

that said that the previous year’s MLR 

would have no effect on the current 

plan year. The change was added in 

response to public comments and is 

intended to give OPM appropriate 

flexibility to determine a fair and 

accurate MLR for each plan in each 

year. Second, OPM has laid out a 

deadline for publishing the FEHBspecific MLR threshold. Third, OPM 

made technical changes to a certificate 

attesting to accurate pricing in order to 

accommodate a change in timing. 

Fourth, clarifying language explains that 

OPM will substitute its own credibility 

adjustment for that defined by HHS. 

Analysis of and Responses to Public 

Comments 

We received two comment letters on 

the interim final rule from FEHB 

carriers and carrier groups. The 

comments and OPM’s responses are 

detailed below. 

Comment: A commenter noted that 

FEHB carriers will need as much 

advance notice of the MLR threshold for 

the following year as possible. This 

commenter recommended early notice 

by OPM, even in advance of the annual 

Call Letter, to allow carriers to plan for 

rating actions and complete filings. 

Response: For the first years of MLRbased rate negotiation, OPM will be 

gathering information about FEHB 

carrier MLRs which will aid in setting 

future MLR thresholds. OPM will make 

every effort to provide such advance 

notice as the rate negotiation 

methodology matures. This final 

regulation text states that OPM will 

make the MLR threshold public no later 

than twelve calendar months before 

plan years beginning with 2014. 

Comment: A commenter raised the 

need for clarity and consistency 

regarding the identification and 

allocation of costs and revenues for the 

MLR calculation. Specifically, the 

commenter asked for additional 

clarification on what can be included as 

expenses, such as fees and charges 

related to Affordable Care Act 

implementation. 

Response: As stated in the interim 

final regulation, OPM will adopt the 

HHS definition of MLR for purposes of 

MLR-based rate negotiation in FEHB. 

We anticipate that any clarifications 

around this calculation that are offered 

by HHS will be adopted by OPM. OPM 

will only allow costs for items that are 

allowed by the FEHB contract to be 

included in the MLR calculation. 

Comment: Both commenters raised 

concerns about the subsidization 

penalty reserve account. One 

commenter stated that using penalty 

funds to subsidize other plans is 

inconsistent with both the current 

similarly sized subscriber group (SSSG) 

methodology and the ACA MLR rebates. 

Another commenter stated that OPM 

needs to be sure that this reserve does 

not act as a disincentive for carriers to 

operate in the most efficient way 

possible. 

Response: OPM has intentionally 

structured the subsidization penalty 

differently from either the SSSG 

adjustments or the ACA MLR rebates. 

The subsidization penalties are to be 

shared among community rated plans in 

order to avoid a plan paying a penalty 

into an account from which it can solely 

benefit. 

In response to the concern about the 

subsidization penalty reserve acting as a 

disincentive to efficiency, OPM feels the 

penalty will encourage plans to offer a 

fair rate at the time of proposal and 

therefore will not act as a disincentive 

to efficiency. 

Comment: Both commenters 

expressed concern about OPM’s plan to 

calculate MLR using one year of data, as 

compared to a three year average for the 

HHS calculation. The commenters were 

concerned about large FEHB plans 

having to manage between the two 

methodologies. One commenter 

mentioned that an annual MLR 

calculation would not allow FEHB plans 

to mitigate variation when carriers 

engage in activities that entail large onetime start up costs. 

Response: Regarding the commenters 

concern about managing two 

methodologies, OPM feels applying an 

MLR calculation similar to the ACA 

required calculation, instead of the 

SSSG methodology, provides more 

consistency than there would have been 

without this regulatory change. 

OPM must balance its goal of 

negotiating the best rate for FEHB 

payers every year with the concerns of 

FEHB carriers about managing variation. 

For example, OPM may consider the 

MLR for one or more previous years 

when calculating the current year’s 

MLR. This allows OPM the flexibility to 

prevent carriers who have historically 

offered favorable rates from being overly 

penalized for an unusually low MLR in 


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Federal Register / Vol. 77, No. 63 / Monday, April 2, 2012 / Rules and Regulations 19523 

a given year. OPM issues its annual rate 

instructions to plans well in advance of 

contract negotiations which would 

contain any variations required to 

address such concerns. 

Comment: A commenter stated the 

need for advance knowledge and 

understanding of the criteria that will be 

applied during the annual reconciliation 

audit. Specifically, the commenter 

asked to better understand the factors 

that will be considered and the potential 

outcomes of the reconciliation process 

itself once applied. Additionally, the 

commenter would like to understand 

the roles of OPM and the OPM Inspector 

General in audit oversight. 

Response: OPM does not have plans 

to change any element of the audit 

process as a result of this regulation. As 

such, OPM will not add any information 

about the audit process to this 

regulation. 

Comment: A commenter raised a 

concern about how the ACA MLR 

rebates will be treated in calculating the 

FEHB MLR. Specifically, the commenter 

wanted to be sure that disregarding the 

ACA MLR payments from the FEHB 

MLR calculation will not result in 

inappropriate duplicative payments and 

suggested that the methodology be 

revised to include any ACA rebate in 

the numerator along with medical costs. 

Response: The ACA rebate for a 

carrier reflects a three year average MLR 

for their entire book of business and is 

not specific to the FEHB. OPM wants 

the FEHB MLR to be representative of 

only FEHB experience. Its purpose is to 

ensure the FEHB is receiving a fair rate 

each year. Including data that is not 

specific to FEHB claims experience and 

premiums would diminish OPM’s 

ability to do this. Duplicative payments 

should not result because any amounts 

paid to the subsidization penalty reserve 

should be captured in the following 

year’s ACA MLR calculation. 

Comment: A commenter 

recommended that OPM permit plans to 

aggregate premiums by parent company 

when calculating the MLR to mitigate 

wide variation in MLRs among a parent 

company’s plan offerings. 

Response: The regulation allows for 

this recommendation through the rate 

instructions if OPM deems it to be 

appropriate. We do not expect to allow 

for aggregation within the first few years 

of implementing MLR, but will consider 

this option as the MLR experience 

matures. 

Comment: One commenter expressed 

concern about OPM’s plan to use a 

different form than HHS for submitting 

MLR information. The commenter is 

concerned about the administrative 

burden of the two forms and 

recommends that OPM follow the model 

of the HHS form and make it public 

before the end of 2011. 

Response: Because formula for 

calculating the MLR required in this 

context is the same as that outlined in 

45 CFR part 158, OPM intends to model 

its form closely on the HHS form. 

Comment: One commenter 

recommended that OPM implement a 

credibility adjustment for small or new 

plans for the MLR calculation in the 

2012 pilot year. 

Response: OPM agrees that such an 

adjustment is appropriate once the new 

methodology is fully implemented in 

2013 and beyond. OPM does not plan to 

use such an adjustment in the 2012 pilot 

year since plans requiring an adjustment 

can choose not to use the new 

methodology. OPM intends to adjust the 

calculation for small or new plans for 

years 2013 and beyond. 

Comment: A commenter 

recommended that OPM issue guidance 

for those plans that choose to participate 

in the 2012 MLR pilot. Specifically, the 

commenter would like guidance 

confirming that the FEHB MLR 

calculation will follow the HHS 

methodology in treatment of Federal 

income taxes, not-for-profit community 

benefits, and assessments on health 

insurers to support medical centers. 

Response: OPM has been speaking 

with FEHB carriers participating in the 

2012 MLR pilot about their specific 

concerns and has offered some guidance 

in that context. OPM will continue 

conversations with FEHB carriers as 

needed. OPM intends to be consistent 

with the HHS methodology unless doing 

so conflicts with the FEHB contract. 

Changes Made Since the Interim Final 

Rule Was Published 

The interim final regulation on this 

subject published June 29, 2011 (76 FR 

38282). In § 1602.170–14(b), the first 

sentence of the interim final rule read 

‘‘The FEHB-specific MLR will be 

calculated on an annual basis with the 

prior year’s ratio having no effect on the 

current plan year.’’ In this final rule, 

OPM removed the clause ‘‘with the 

prior year’s ratio having no effect on the 

current plan year’’ since OPM may use 

an adjustment taking previous year’s 

experience into account. 

Also in § 1602.170–14(b), this final 

rule states that OPM will put forth the 

FEHB-specific MLR threshold no later 

than 12 calendar months before the 

beginning of plan years beginning with 

2014. The final rule states that OPM will 

publish the 2013 threshold no later than 

8 months before the beginning of that 

plan year. In § 1602.170–14(c), this final 

rule explains that OPM will set a 

credibility adjustment in place of the 

one defined by HHS at 45 CFR 158.230– 

158.232. 

In the interim final rule, the 

supplementary information included a 

sentence stating that ‘‘To complete the 

FEHB-specific MLR threshold 

calculation after the carrier calculated 

the ACA-required MLR, FEHB carriers 

will report claims incurred in the plan 

year and paid through March 31 of the 

following year.’’ OPM has determined 

that a longer period of claims data 

would create a more stable calculation 

for carriers and therefore OPM will 

request through rate instructions that 

carriers submit claims through June 30 

of the following year. To accommodate 

the change in timing, carriers using the 

MLR methodology will have to submit 

a ‘‘Certificate of Accurate Cost or Pricing 

Data for Community-Rated Carriers’’ 

followed by a ‘‘Certificate of Accurate 

MLR Calculation’’ at a later date. In the 

interim final rule there was only one 

certificate for all carriers. The new 

certificate language is in § 1615.406–2. 

Regulatory Impact Analysis 

OPM has examined the impact of this 

rule as required by Executive Order 

12866 (September 1993, Regulatory 

Planning and Review) and Executive 

Order 13563, which directs agencies to 

assess all costs and benefits of available 

regulatory alternatives and, if regulation 

is necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public, health, and 

safety effects, distributive impacts, and 

equity). A regulatory impact analysis 

must be prepared for major rules with 

economically significant effects of $100 

million or more in any one year. This 

rule is not considered a major rule 

because OPM estimates that premiums 

paid by Federal employees and agencies 

will be very similar under the old and 

new payment methodologies. This rule 

will be cost-neutral. OPM’s intention is 

to keep FEHB premiums stable and 

sustainable using this more transparent 

methodology. 

List of Subjects 

5 CFR Part 890 

Government employees, Health 

facilities, Health insurance, Health 

professions, Hostages, Iraq, Kuwait, 

Lebanon, Military personnel, Reporting 

and recordkeeping requirements, 

Retirement. 

48 CFR Parts 1602, 1615, 1632, and 

1652 

Government employees, Government 

procurement, Health insurance, 


sroberts on DSK5SPTVN1PROD with RULES
19524 Federal Register / Vol. 77, No. 63 / Monday, April 2, 2012 / Rules and Regulations 

Reporting and recordkeeping 

requirements. 

U.S. Office of Personnel Management. 

John Berry, 

Director. 

For the reasons set forth in the 

preamble, OPM is adopting the interim 

rule published June 29, 2011, at 76 FR 

38282 as final with the following 

changes: 

TITLE 48—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

Chapter 16—Office of Personnel 

Management Federal Employees Health 

Benefits Acquisition Regulation 

Subchapter A—General 

PART 1602—DEFINITIONS OF WORDS 

AND TERMS 

■ 1. The authority citation for part 1602 

continues to read as follows: 

Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 

48 CFR 1.301. 

■ 2. Revise § 1602.170–14 to read as 

follows: 

§ 1602.170–14 FEHB-specific medical loss 

ratio threshold calculation. 

(a) Medical Loss Ratio (MLR) means 

the ratio of plan incurred claims, 

including the issuer’s expenditures for 

activities that improve health care 

quality, to total premium revenue 

determined by OPM, as defined by the 

Department of Health and Human 

Services in 45 CFR part 158. 

(b) The FEHB-specific MLR will be 

calculated on an annual basis. This 

FEHB-specific MLR will be measured 

against an FEHB-specific MLR threshold 

to be put forth by OPM no later than 12 

calendar months before the beginning of 

plan years 2014 and beyond. OPM will 

publish the FEHB-specific MLR 

threshold no later than 8 months before 

the beginning of plan year 2013. 

(c) In place of the credibility 

adjustment at 45 CFR 158.230–158.232, 

OPM will set a separate credibility 

adjustment to account for the special 

circumstances of small FEHB plans in 

annual rate instructions to carriers. 

Subchapter C—Contracting Methods and 

Contract Types 

PART 1615—CONTRACTING BY 

NEGOTIATION 

■ 3. The authority citations for part 

1615 continue to read as follows: 

Authority: Audit and records—5 U.S.C. 

8913; 40 U.S.C. 486(c); 48 CFR 1.301. 

Negotiation—5 U.S.C. 8902. 

■ 4. In § 1615.402, revise paragraph 

(c)(3)(ii)(A) to read as follows: 

§ 1615.402 Pricing policy. 

* * * * * 

(c) * * * 

(3) * * * 

(ii) * * * 

(A) For contracts with 1,500 or more 

enrollee contracts for which the FEHB 

Program premiums for the contract term 

will be at or above the threshold at FAR 

15.403–4(a)(1), OPM will require the 

carrier to provide the data and 

methodology used to determine the 

FEHB Program rates. OPM will also 

require the data and methodology used 

to determine the medical loss ratio 

(MLR) as defined in the ACA (Pub. L. 

111–148) and as defined by HHS in 45 

CFR part 158 for all FEHB community 

rated plans other than those required by 

state law to use Traditional Community 

Rating. The carrier will provide cost or 

pricing data, as well as the FEHBspecific MLR threshold data required by 

OPM in its rate instructions for the 

applicable contract period. OPM will 

evaluate the data to ensure that the rate 

is reasonable and consistent with the 

requirements in this chapter. If 

necessary, OPM may require the carrier 

to provide additional documentation. 

* * * * * 

■ 5. Revise § 1615.406–2 to read as 

follows: 

§ 1615.406–2 Certificates of accurate cost 

or pricing data for community rated 

carriers. 

(a) The contracting officer will require 

a carrier with a contract meeting the 

requirements in 1615.402(c)(2) or (3) to 

execute one or more of the Certificates 

contained in this section. A carrier with 

a contract meeting the requirements in 

1615.402(c)(2) will complete the 

appropriate Certificate(s) and keep such 

on file at the carrier’s place of business 

in accordance with 1652.204–70. A 

carrier with a contract meeting the 

requirements in 1615.402(c)(3) will 

complete and submit the appropriate 

certificate(s) to OPM. 

(b) A carrier using the SSSG 

methodology described in 

1615.402(c)(3)(i) will submit the 

‘‘Certificate of Accurate Cost or Pricing 

Data for Community-Rated Carriers 

(SSSG methodology)’’ along with its rate 

reconciliation during the first quarter of 

the applicable contract year. A carrier 

using the MLR methodology described 

in 1615.402(c)(3)(ii) will submit two 

forms. The ‘‘Certificate of Accurate Cost 

or Pricing Data for Community-Rated 

Carriers (MLR methodology)’’ will be 

submitted along with the rate 

reconciliation during the first quarter of 

the applicable contract year. The 

‘‘Certificate of Accurate MLR 

Calculation’’ will be submitted when 

the carrier submits its FEHB-specific 

MLR calculation to OPM. 

(Beginning of first certificate) 

Certificate of Accurate Cost or Pricing 

Data for Community-Rated Carriers 

(SSSG methodology) 

This is to certify that, to the best of 

my knowledge and belief: (1) The cost 

or pricing data submitted (or, if not 

submitted, maintained and identified by 

the carrier as supporting 

documentation) to the Contracting 

officer or the Contracting officer’s 

representative or designee, in support of 

the lll*FEHB Program rates were 

developed in accordance with the 

requirements of 48 CFR Chapter 16 and 

the FEHB Program contract and are 

accurate, complete, and current as of the 

date this certificate is executed; and (2) 

the methodology used to determine the 

FEHB Program rates is consistent with 

the methodology used to determine the 

rates for the carrier’s Similarly Sized 

Subscriber Groups. 

*Insert the year for which the rates 

apply. 

Firm: lllllllllllllll

Name: lllllllllllllll

Signature: lllllllllllll

Date of Execution: llllllllll

(End of first certificate) 

(Beginning of second certificate) 

Certificate of Accurate Cost or Pricing 

Data for Community-Rated Carriers 

(MLR methodology) 

This is to certify that, to the best of 

my knowledge and belief: (1) The cost 

or pricing data submitted (or, if not 

submitted, maintained and identified by 

the carrier as supporting 

documentation) to the Contracting 

officer or the Contracting officer’s 

representative or designee, in support of 

the lll*FEHB Program rates were 

developed in accordance with the 

requirements of 48 CFR Chapter 16 and 

the FEHB Program contract and are 

accurate, complete, and current as of the 

date this certificate is executed; 

*Insert the year for which the rates 

apply. 

Firm: lllllllllllllll

Name: lllllllllllllll

Signature: lllllllllllll

Date of Execution: llllllllll

(End of second certificate) 

(Beginning of third certificate) 

Certificate of Accurate MLR Calculation 

This is to certify that, to the best of 

my knowledge and belief: the 

determination of the carrier’s FEHBVerDate Mar<15>2010 15:38 Mar 30, 2012 Jkt 226001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\02APR1.SGM 02APR1

sroberts on DSK5SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 63 / Monday, April 2, 2012 / Rules and Regulations 19525 

specific medical loss ratio for * is 

accurate, complete, and consistent with 

the methodology as stated in 

§ 1615.402(c)(3)(ii). 

*Insert the year for which the MLR 

calculation applies. 

Firm: lllllllllllllll

Name: lllllllllllllll

Signature: lllllllllllll

Date of Execution: llllllllll

(End of certificate) 

Subchapter H—Clauses and Forms 

PART 1652—CONTRACT CLAUSES 

■ 6. The authority citation for Part 1652 

continues to read as follows: 

Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 

48 CFR 1.301. 

■ 7. In § 1652.216–70, revise paragraph 

(b)(4) to read as follows: 

§ 1652.216–70 Accounting and price 

adjustment. 

* * * * * 

(b) * * * 

(4) If rates are determined by 

comparison with the FEHB-specific 

MLR threshold, then if the MLR for the 

carrier’s FEHB plan is found to be lower 

than the published FEHB-specific MLR 

threshold, the carrier must pay a 

subsidization penalty equal to the 

difference into a subsidization penalty 

account. 

* * * * * 

[FR Doc. 2012–7835 Filed 3–30–12; 8:45 am] 

BILLING CODE 6325–64–P 

DEPARTMENT OF AGRICULTURE 

Food and Nutrition Service 

7 CFR Part 210 

[FNS–2011–0021] 

RIN 0584–AE11 

National School Lunch Program: 

School Food Service Account Revenue 

Amendments Related to the Healthy, 

Hunger-Free Kids Act of 2010; 

Approval of Information Collection 

Request 

AGENCY: Food and Nutrition Service, 

USDA. 

ACTION: Interim final rule; approval of 

information collection request. 

SUMMARY: The Food and Nutrition 

Service published an interim final rule 

entitled ‘‘National School Lunch 

Program: School Food Service Account 

Revenue Amendments Related to the 

Healthy, Hunger-Free Kids Act of 2010’’ 

on June 17, 2011. The Office of 

Management and Budget (OMB) cleared 

the associated information collection 

requirements (ICR) on February 6, 2012. 

This document announces approval of 

the ICR. 

DATES: The ICR associated with the 

interim rule published in the Federal 

Register on June 17, 2011, at 76 FR 

35301, was approved by OMB on 

February 6, 2012, under OMB Control 

Number 0584–0565. 

FOR FURTHER INFORMATION CONTACT: 

Lynn Rodgers-Kuperman, Chief, 

Program Analysis and Monitoring 

Branch, Child Nutrition Division, Food 

and Nutrition Service, USDA, 3101 Park 

Center Drive, Room 640, Alexandria, 

Virginia 22302, (703) 305–2600, or 

Lynn.Rogers@fns.usda.gov. 

SUPPLEMENTARY INFORMATION: The June 

2011 rule amended National School 

Lunch Program (NSLP) regulations to 

conform to requirements contained in 

the Healthy, Hunger-Free Kids Act of 

2010 (Pub. L. 111–296) regarding equity 

in school lunch pricing and revenue 

from nonprogram foods sold in schools. 

It requires school food authorities 

(SFAs) participating in the NSLP to 

provide the same level of financial 

support for lunches served to students 

who are not eligible for free or reduced 

price lunches as is provided for lunches 

served to students eligible for free 

lunches, and also that all food sold in 

a school and purchased with funds from 

the nonprofit school food service 

account, other than meals and 

supplements reimbursed by the 

Department of Agriculture, must 

generate revenue at least equal to the 

cost of such foods. The rule too 

comments on its ICR until August 16, 

2011. This document announces OMB’s 

approval of the ICR under OMB Control 

Number 0584–0565. 

Dated: March 26, 2012. 

Audrey Rowe, 

Administrator, Food and Nutrition Service. 

[FR Doc. 2012–7762 Filed 3–30–12; 8:45 am] 

BILLING CODE 3410–30–P 

DEPARTMENT OF AGRICULTURE 

Rural Utilities Service 

7 CFR Part 1728 

Specification for 15 kV and 25 kV 

Primary Underground Power Cable 

AGENCY: Rural Utilities Service, USDA. 

ACTION: Final rule. 

SUMMARY: The Rural Utilities Service 

(RUS) is amending its regulations 

regarding electric distribution 

specifications for 15kV and 25 kV 

primary underground power cable. This 

rule will rescind Bulletin 50–70 (U–1), 

‘‘REA Specification for 15 kV and 25 kV 

Primary Underground Power Cable,’’ 

and codify the material which was 

formerly incorporated by reference. The 

specifications and standards that 

appeared in the old RUS Bulletin 50–70 

(U–1) will be incorporated by reference 

and will update the specifications for 

15kV and 25kV underground power 

cable, and provide RUS borrowers with 

specifications for 35 kV underground 

power cable for use in 25 kV primary 

systems. These specifications cover 

single-phase and multi-phase primary 

underground power cable which RUS 

electric borrowers use to construct their 

rural underground electric distribution 

systems. 

DATES: This rule is effective May 2, 

2012. 

Incorporation by Reference: The 

incorporation by reference of certain 

publications listed in this rule is 

approved by the Director of the Federal 

Register as of May 2, 2012 

FOR FURTHER INFORMATION CONTACT: Mr. 

Trung V. Hiu, Electrical Engineer, 

Electric Staff Division, Distribution 

Branch, Rural Utilities Service, United 

States Department of Agriculture, Room 

1262–S, 1400 Independence Avenue 

SW., Washington, DC 20250–1569. 

Telephone: (202) 720–1877. FAX: (202) 

720–7491. Email: 

Trung.Hiu@wdc.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This final rule is exempted from the 

Office of Management and Budget 

(OMB) review for purposes of Executive 

Order 12866 and, therefore, has not 

been reviewed by OMB. 

Executive Order 12372 

This final rule is excluded from the 

scope of Executive Order 12372, 

Intergovernmental Consultation, which 

may require consultation with State and 

local officials. A notice of the final rule 

entitled ‘‘Department Programs and 

Activities Excluded from Executive 

Order 12372,’’ (50 FR 47034) exempted 

the Rural Utilities Service loans and 

loan guarantees to form coverage under 

this order. 

Executive Order 12988 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. The Rural Utilities 

Service has determined that this rule 

meets the applicable standards provided 

in section 3 of the Executive Order. In 


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