Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Proposed Rules 23425 

of Design Authority (or their delegated 

agent). You are required to assure the product 

is airworthy before it is returned to service. 

(q) Related Information 

Refer to MCAI Canadian Airworthiness 

Directive CF–2010–24, dated August 3, 2010; 

and the service bulletins specified in 

paragraphs (q)(1), (q)(2), (q)(3), (q)(4), (q)(5), 

(q)(6), (q)(7), (q)(8), and (q)(9) of this AD; for 

related information. 

(1) Canadair Regional Jet Temporary 

Revision RJ/186–1, dated August 24, 2010, to 

the Canadair Regional Jet Airplane Flight 

Manual, CSP A–012. 

(2) Bombardier Alert Service Bulletin 

A601R–29–029, Revision B, dated May 11, 

2010, including Appendix A, dated October 

18, 2007. 

(3) Bombardier Alert Service Bulletin 

A601R–29–031, Revision A, dated March 26, 

2009. 

(4) Bombardier Alert Service Bulletin 

A601R–32–103, Revision D, dated May 11, 

2010, including Appendix A, Revision A, 

dated October 18, 2007. 

(5) Bombardier Service Bulletin 601R–29– 

032, Revision A, dated January 26, 2010. 

(6) Bombardier Service Bulletin 601R–29– 

033, Revision A, dated May 11, 2010, 

including Appendix A, dated May 5, 2009. 

(7) Bombardier Service Bulletin 601R–29– 

035, Revision A, dated December 8, 2010. 

(8) Bombardier Service Bulletin 601R–32– 

106, Revision A, including Appendix A, 

dated May 11, 2010. 

(9) Bombardier Service Bulletin 601R–32– 

107, Revision B, dated December 8, 2010. 

Issued in Renton, Washington, on April 11, 

2012. 

John P. Piccola, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2012–9477 Filed 4–18–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

15 CFR Part 922 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

50 CFR Part 1 

Revisions of Boundaries, Regulations 

and Zoning Scheme for Florida Keys 

National Marine Sanctuary; Revisions 

of Fish and Wildlife Service and State 

of Florida Management Agreement for 

Submerged Lands Within Boundaries 

of the Key West and Great White Heron 

National Wildlife Refuges and 

Regulations; Intent To Prepare a Draft 

Environmental Assessment or 

Environmental Impact Statement; 

Notice of Scoping Meetings 

AGENCY: Office of National Marine 

Sanctuaries (ONMS), National Ocean 

Service (NOS), National Oceanic and 

Atmospheric Administration (NOAA), 

Department of Commerce (DOC) and 

National Wildlife Refuge System, Fish 

and Wildlife Service (FWS), U.S. 

Department of the Interior (DOI). 

ACTION: Notice of Intent to Conduct 

Scoping Meetings for the Revision of 

Boundaries, Regulations and Zoning 

Scheme for Florida Keys National 

Marine Sanctuary and Key West and 

Great White Heron National Wildlife 

Refuges; and to Prepare an 

Environmental Assessment or Draft 

Environmental Impact Statement. 

SUMMARY: In accordance with the 

National Marine Sanctuaries Act, as 

amended, (NMSA) and the National 

Wildlife Refuge System Administration 

Act of 1966 as amended by the National 

Wildlife Refuge System Improvement 

Act of 1997, the Office of National 

Marine Sanctuaries (ONMS) of the 

National Oceanic and Atmospheric 

Administration (NOAA) and the 

National Wildlife Refuge System of the 

Fish and Wildlife Service (FWS) have 

initiated a review of Florida Keys 

National Marine Sanctuary (FKNMS or 

sanctuary) boundaries, regulations and 

zoning scheme. This review of existing 

regulations and marine zoning may 

result in changes to regulations, marine 

zoning, such as altering boundaries of 

current zones, creating new zones, or 

amending the regulations that apply to 

individual zones, and possibly 

sanctuary boundaries. The review will 

also include the FWS’s Backcountry 

Management Plan and associated 

regulations, as authorized by the FWS 

and State of Florida Management 

Agreement for Submerged Lands within 

Boundaries of the Key West and Great 

White Heron National Wildlife Refuges, 

to evaluate substantive progress toward 

implementing the backcountry 

management goals for the refuges. 

DATES: All comments on issues related 

to the boundaries, regulations and 

zoning scheme of Florida Keys National 

Marine Sanctuary and the agreement for 

submerged lands within boundaries of 

the Key West and Great White Heron 

National Wildlife Refuges and 

associated regulations will be 

considered if received on or before June 

29, 2012. See SUPPLEMENTARY

INFORMATION section below for the dates, 

times, and locations of the public 

scoping meetings. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Submit electronic 

comments via the Federal eRulemaking 

Portal, FDMS Docket Number NOAA– 

NOS–2012–0061. 

• Mail: Sean Morton, Sanctuary 

Superintendent, Florida Keys National 

Marine Sanctuary, 33 East Quay Road 

Key West, Florida 33040 and Anne 

Morkill, Refuge Manager, U.S. Fish and 

Wildlife Service, 28950 Watson Blvd., 

Big Pine Key, FL 33043. 

• Instructions: All comments received 

are a part of the public record and will 

be generally posted to http:// 

www.regulations.gov without change. 

All Personal Identifying Information (for 

example, name, address, etc.) 

voluntarily submitted by the commenter 

may be publicly accessible. Do not 

submit confidential business 

information or otherwise sensitive or 

protected information. NOAA will 

accept anonymous comments (enter 

N/A in the required fields to remain 

anonymous). Attachments to electronic 

comments will be accepted in Microsoft 

Word, Excel, WordPerfect, or Adobe 

PDF file formats only. 

FOR FURTHER INFORMATION CONTACT: 

Sean Morton, Sanctuary 

Superintendent, FKNMS, Telephone: 

(305) 809–4700 x233 or Anne Morkill, 

Refuge Manager, USFWS, Telephone: 

(305) 872–2239 x209. 

SUPPLEMENTARY INFORMATION: In 

accordance with the National Marine 

Sanctuaries Act, as amended, (NMSA) 

(16 U.S.C. 1431 et seq.) and the National 

Wildlife Refuge System Administration 

Act of 1966 (16 U.S.C. 668dd–668ee) as 

amended by the National Wildlife 

Refuge System Improvement Act of 

1997, the Office of National Marine 


tkelley on DSK3SPTVN1PROD with PROPOSALS
23426 Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Proposed Rules 

Sanctuaries (ONMS) of the National 

Oceanic and Atmospheric 

Administration (NOAA) and the 

National Wildlife Refuge System of the 

Fish and Wildlife Service (FWS) have 

initiated a review of Florida Keys 

National Marine Sanctuary (FKNMS or 

sanctuary) boundaries, regulations and 

zoning scheme. Collectively, NOAA and 

FWS will make revisions to the 

sanctuary boundaries, regulations and 

zoning scheme and backcountry 

management agreement as necessary to 

fulfill the purposes and policies of the 

NMSA, the Florida Keys National 

Marine Sanctuary and Protection Act 

(FKNMSPA; Pub. L. 101–605), and the 

National Wildlife Refuge System 

Improvement Act of 1997 (NWRSIA; 

Pub. L. 105–57). The review is being 

undertaken in response to several 

factors, including community interest in 

examining management and 

conservation strategies, the need to 

adapt sanctuary and refuge management 

to changing conditions such as emerging 

threats to resources, recent scientific 

findings showing degraded habitat and 

how resources may be improved with 

various long-term management efforts, 

and legal requirements. More 

information about this process can be 

found at http://floridakeys.noaa.gov/ 

review/welcome.html. 

Florida Keys National Marine 

Sanctuary 

The NMSA (16 U.S.C. 1431 et seq.) 

authorizes the Secretary of Commerce to 

designate and protect areas of the 

marine environment with special 

national significance due to their 

conservation, recreational, ecological, 

historical, scientific, cultural, 

archeological, educational, or esthetic 

qualities as national marine sanctuaries. 

Management of national marine 

sanctuaries has been delegated by the 

Secretary of Commerce to NOAA’s 

Office of National Marine Sanctuaries 

(ONMS). Florida Keys National Marine 

Sanctuary (FKNMS) was designated by 

Congress in 1990 through the Florida 

Keys National Marine Sanctuary 

Protection Act (FKNMSPA, Pub. L. 101– 

605). FKNMS extends approximately 

250 statute miles southwest from the 

southern tip of the Florida peninsula, 

and is composed of both state and 

Federal waters. The sanctuary’s marine 

ecosystem supports over 6,000 species 

of plants, fishes, and invertebrates, 

including the Nation’s only living coral 

reef that lies adjacent to the continent. 

The area includes one of the largest 

seagrass communities in this 

hemisphere. The primary goal of the 

sanctuary is to protect the marine 

resources of the Florida Keys. Other 

goals of the sanctuary include 

facilitating human uses that are 

consistent with the primary objective of 

resource protection as well as educating 

the public about the Florida Keys 

marine environment. 

The National Oceanic and 

Atmospheric Administration (NOAA), a 

federal agency within the Department of 

Commerce, administers FKNMS. With 

60 percent of its protected area located 

in Florida state waters, the sanctuary is 

jointly managed by NOAA and the State 

of Florida under a co-trustee agreement. 

Under this agreement, NOAA’s primary 

management partner is the Florida 

Department of Environmental Protection 

(DEP). Any amendments to the 

management plan will be submitted and 

reviewed pursuant to the State of 

Florida’s clearinghouse process. Any 

amendments to sanctuary regulations 

require the approval of the Governor on 

behalf of and with the approval of the 

Florida Trustees (the Governor and 

Cabinet of the State of Florida act as the 

Board of Trustees of the Internal 

Improvement Trust Fund) in order to be 

effective in State waters and submerged 

lands, except for merely editorial 

amendments, technical corrections, and 

emergency regulations. 

In FKNMS, NOAA regulates the 

following: Injuring coral; fishing; 

discharges and deposits; impacts to the 

seafloor, including from dredging and 

dumping; discharges of sewage from 

vessels; vessel operations, including 

personal watercraft and airboats, that 

cause injuries to resources, humans or 

property; anchoring on coral; wakes 

near residential shorelines; vessel 

operations near diving/use of dive flags; 

releasing exotic species; damage to 

markers, buoys and scientific 

equipment; injuring historical resources; 

use of explosives and electric charges; 

harvest of marine life species except as 

allowed by the Florida Fish and 

Wildlife Conservation Commission; and 

activities in specified zones. 

Information on sanctuary regulations 

can be found online at http:// 

floridakeys.noaa.gov/regs/ 

welcome.html?s=management. 

The types of zones currently in place 

in the sanctuary are: ecological reserves, 

sanctuary preservation areas, wildlife 

management areas, existing 

management areas, and special-use 

areas. A more detailed description of 

sanctuary zones can be found online at 

http://floridakeys.noaa.gov/zones/ 

types.html. In addition, the FKNMS 

revised management plan is available 

for download at http:// 

floridakeys.noaa.gov/mgmtplans/ 

2007.html. 

Key West and Great White Heron 

National Wildlife Refuges 

In the Key West and Great White 

Heron National Wildlife Refuges, the 

Fish and Wildlife Service (FWS) may 

implement restrictions to minimize 

wildlife disturbance and habitat 

destruction in state waters from nonwildlife-dependent activities under a 

joint management agreement with the 

State of Florida for submerged lands. 

The FWS protects backcountry 

resources in state waters with limits on 

access/operation of vessels, jet skis, and 

air boats; buffer zones; water skiing; and 

aircraft water landings. The FWS 

backcountry management plan is 

available for download at http:// 

www.fws.gov/nationalkeydeer/ 

backcountry.html. Additional 

information about the management 

goals and objectives for the Key West 

and Great White Heron National 

Wildlife Refuges is described in the 

Lower Florida Keys National Wildlife 

Refuges Comprehensive Conservation 

Plan, available for download at http:// 

www.fws.gov/southeast/planning/CCP/ 

LowerFLkeysFinalPg.html. 

NOAA and the FWS anticipate that 

completion of the revised boundaries, 

regulations, zoning scheme, 

backcountry management plan and 

concomitant documents will require 

approximately forty-eight months from 

the date of publication of this notice of 

intent. This joint review process will 

occur concurrently with a public 

process under the National 

Environmental Policy Act (NEPA; 42 

U.S.C. 4321 et seq.). This notice 

confirms that NOAA and FWS will 

coordinate their responsibilities under 

section 106 of the National Historic 

Preservation Act (NHPA, 16 U.S.C. 470) 

with the ongoing NEPA process, 

pursuant to 36 CFR 800.8(a). Therefore, 

the NEPA documents and public and 

stakeholder meetings associated with 

this process are also intended to meet 

the section 106 requirements. 

Sanctuary Advisory Council 

Sanctuary advisory councils are 

community-based advisory groups 

established to provide advice and 

recommendations to the 

superintendents of the national marine 

sanctuaries. Councils also serve as 

liaisons between their constituents in 

the community and sanctuaries. 

Sanctuary advisory councils provide 

advice about sanctuary operations and 

projects, including education and 

outreach, research and science, 

regulations and enforcement, and 

management planning. They are 

particularly critical in helping a 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Proposed Rules 23427 

sanctuary during reviews of regulatory 

actions such as this zoning review. 

Council members provide expertise on 

both the local community and sanctuary 

resources, strengthen connections with 

the community, and help build 

increased stewardship for sanctuary 

resources. 

The advisory council for Florida Keys 

National Marine Sanctuary has 

recommended the following goals and 

objectives to the sanctuary 

superintendent for this review: 

A. To improve the diversity of natural 

biological communities in the Florida 

Keys to protect, and, where appropriate 

restore and enhance natural habitats, 

populations and ecological processes 

overall and in each of these subregions 

Tortugas, Marquesas, Lower, Middle, 

and Upper Keys. 

1. Reduce stresses from human 

activities by establishing areas that 

restrict access to sensitive wildlife 

populations and habitats. 

2. Protect large, contiguous, diverse 

and interconnected habitats that provide 

natural spawning, nursery, and 

permanent residence areas for the 

replenishment and genetic protection of 

marine life and protect and preserve all 

habitats and species. 

3. Improve/maintain the condition of 

the biologically structured habitats 

including: 

a. Coral Reef 

i. Inshore Patch Reef 

ii. Mid-Channel Patch Reef 

iii. Offshore Patch Reef 

iv. Reef Margin/Fore Reef 

v. Deep Reef 

b. Seagrass Bed 

c. Hardbottom 

d. Coastal Mangrove 

4. Increase abundance and condition 

of selected key species including corals, 

queen conch, long spined sea urchin, 

apex predatory fish, birds and sea 

turtles. 

B. To facilitate to the extent 

compatible with the primary objective 

of resource protection, all public and 

private uses of the resources of these 

marine areas not prohibited pursuant to 

other authorities. 

1. Minimize conflicts among uses 

compatible with the National Marine 

Sanctuary. 

2. Prevent heavy concentrations of 

uses that degrade Sanctuary resources. 

3. Provide undisturbed monitoring 

sites for research and control sites to 

help determine the effects of human 

activities. 

4. Achieve a vibrant ecologically 

sustainable ecosystem and economy. 

a. Apply the best available science 

and balanced, conservation based 

management. 

The sanctuary advisory council has 

also recommended the following 

guiding principles to the sanctuary 

superintendent for this review: 

1. The regulation/zoning review of 

Florida Keys National Marine Sanctuary 

should be conducted with the 

recognition that there are bordering and 

overlapping marine management 

regimes in place, and that these regimes 

must be considered when contemplating 

changes to the regulation/marine zoning 

structure for Florida Keys National 

Marine Sanctuary. 

2. All areas of Florida Keys National 

Marine Sanctuary should be classified 

as part of a specific zone, therefore the 

current ‘‘unzoned’’ area should be 

classified as a recognized zone type 

such as ‘‘general use area’’ or ‘‘multiple 

use area’’. 

3. Each habitat type should be 

represented in a non-extractive marine 

zone in each of the biogeographically 

distinct sub regions of Florida Keys 

National Marine Sanctuary to achieve 

replication. The subregions identified 

were the Tortugas, Marquesas, and 

Lower, Middle, and Upper Keys. 

4. Information on resilient reef areas 

that can serve as refugia should be taken 

into account in zoning changes. 

5. Temporal zoning should be 

considered as a tool for protecting 

spawning aggregations and nesting 

seasons. 

6. The size of individual nonextractive zoned areas, the cumulative 

total area included in non-extractive 

zones, and their spatial relationship 

with one another matter greatly in 

achieving the resource protection 

purposes of Florida Keys National 

Marine Sanctuary. 

Members of the public are encouraged 

to contact the current council members 

who represent their areas of interest, as 

one of the roles of the members is to 

serve as a liaison between the sanctuary 

and members of the community. Contact 

information for advisory council 

members can be found at: http:// 

floridakeys.noaa.gov/sac/members.html. 

Review Process 

In accordance with Section 304(e) of 

the NMSA, 16 U.S.C. 1431 et seq., the 

NOAA ONMS is initiating a review of 

the sanctuary boundaries, regulations 

and zoning scheme to evaluate the 

substantive progress made toward 

implementing the management plan and 

goals for the sanctuary. In accordance 

with Section 4 of National Wildlife 

Refuge System Administration Act of 

1966 (NWRSAA; 16 U.S.C. 668dd et 

seq.), the ONMS and the FWS are also 

jointly initiating a review of the FWS 

backcountry management plan for the 

Key West and Great White Heron 

National Wildlife Refuges to evaluate 

the substantive progress made toward 

implementing the goals and objectives. 

ONMS and the FWS anticipate drafting 

revised boundaries, regulations, zoning 

scheme, backcountry management 

agreement and concomitant documents 

as a result of this review. The current 

management plan for FKNMS was 

completed by NOAA in 2007. Contained 

within it is the FKNMS marine zoning 

action plan. It describes the five types 

of zones in the sanctuary, goals and 

objectives for marine zoning, and 

implementation strategies and actions. 

This review implements the marine 

zoning and regulatory action plans and 

strategies of the current management 

plan. The current FWS backcountry 

management plan and associated 

agreement for the Key West and Great 

White Heron National Wildlife Refuges 

was signed in 1992; it may be reviewed 

and revised every 5 years, although no 

prior reviews have occurred since the 

original plan was completed and the 

associated management agreement with 

the State of Florida is due to expire in 

2017. The FWS, FKNMS and the State 

of Florida are reviewing the backcountry 

management agreement for potential 

revision and renewal. 

There are several reasons for 

undertaking this review: 

• Community and sanctuary advisory 

council interest in reexamining 

sanctuary management and 

conservation strategies, expressed 

during and subsequent to management 

plan reviews; 

• Periodic evaluation of regulations 

and sanctuary zones ensures they 

continue to function best for dynamic 

natural resources and evolving human 

uses; 

• The Florida Keys National Marine 

Sanctuary Condition Report 2011 shows 

human actions continue to degrade the 

habitat and living resources of the 

sanctuary, but habitat and resources 

may be improved with long-term 

management efforts, regulatory 

compliance, and community 

involvement; 

• Emerging threats to the resources 

were largely unanticipated when the 

regulations were first issued and need to 

be addressed; and 

• Reviews of the sanctuary and refuge 

backcountry management plans are 

required by law. 

The review process is composed of 

five primary stages: 

(1) Information collection and 

characterization, including public 

scoping meetings; 

(2) Recommendation of the advisory 

council of Florida Keys National Marine 


tkelley on DSK3SPTVN1PROD with PROPOSALS
23428 Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Proposed Rules 

Sanctuary on revised boundaries, a 

revised zoning scheme and associated 

regulations, with possible working 

groups and public workshops; 

(3) Preparation and release of draft 

revised boundaries, zoning scheme, 

backcountry management agreement, 

environmental evaluation, and, if 

appropriate, regulations or amendments 

to current regulations; 

(4) Public review and comment on the 

draft boundaries and zoning scheme, 

proposed regulatory amendments, and 

other documents mentioned above; and 

(5) Preparation and release of final 

revised boundaries, zoning scheme, 

backcountry management agreement, 

environmental evaluation, and, if 

appropriate, regulations. 

NOAA and the FWS anticipate that 

the completion of the boundaries, 

zoning scheme, backcountry 

management agreement and 

concomitant documents will require 

approximately forty-eight months. 

At this time, NOAA and FWS are 

opening a public scoping period to: 

1. Solicit public comments on the 

boundaries, regulations and zoning 

scheme of Florida Keys National Marine 

Sanctuary; and the submerged lands 

within the boundaries of the Key West 

and Great White Heron National 

Wildlife Refuges and associated 

regulations; and 

2. Help determine the scope of issues 

to be addressed in the preparation of 

boundaries, a zoning scheme, a 

backcountry management agreement, 

and an environmental assessment or 

environmental impact statement (EIS), 

pursuant to the National Environmental 

Policy Act (NEPA). 

To that end, NOAA and FWS will 

conduct a series of scoping meetings in 

the Florida Keys and south Florida to 

collect public comment. These scoping 

meetings will also help determine the 

scope of issues to be addressed in the 

preparation of an environmental 

assessment or EIS pursuant to the 

NEPA, 43 U.S.C. 4321 et seq. The public 

scoping meeting schedule is presented 

below. 

Public Scoping Meetings 

The public scoping meetings will be 

held on the following dates and at the 

following locations beginning at 4 p.m. 

unless otherwise noted: 

1. Marathon, Florida 

Tuesday, June 19, 2012 

Monroe County Government Center, 

Emergency Operations Center/Board of 

County Commissioners Meeting Room, 

2798 Overseas Highway, Marathon, FL 

33050. 

2. Key Largo, Florida 

Wednesday, June 20, 2012 

Key Largo Library, 101485 Overseas 

Hwy., Tradewinds Shopping Center, 

Key Largo, FL 33037. 

3. Key West, Florida 

Thursday, June 21, 2012 

Doubletree by Hilton Hotel Grand Key 

Resort—Key West Tortuga Ballroom, 

3990 S. Roosevelt Blvd., Key West, FL 

33040. 

4. Miami, Florida 

Tuesday, June 26, 2012 

Florida International University, 

Modesto A. Monique Campus Graham 

University Center, Room GC 243, 11200 

SW. 8th St., Miami, FL 33199. 

5. Fort Myers, Florida 

Wednesday, June 27, 2012 

Joseph P. Alessandro Office Complex, 

Rooms 165 C and D, 2295 Victoria Ave., 

Fort Myers, FL 33901. 

Consultation Under National Historic 

Preservation Act 

This notice confirms that NOAA and 

the FWS will coordinate their 

responsibilities under section 106 of the 

National Historic Preservation Act 

(NHPA, 16 U.S.C. 470) with the ongoing 

NEPA process, pursuant to 36 CFR 

800.8(a) including the use of NEPA 

documents and public and stakeholder 

meetings to also meet the section 106 

requirements. The NHPA specifically 

applies to any agency undertaking that 

may affect historic properties. Pursuant 

to 36 CFR 800.16(1)(1), historic 

properties includes: ‘‘any prehistoric or 

historic district, site, building, structure 

or object included in, or eligible for 

inclusion in, the National Register of 

Historic Places maintained by the 

Secretary of the Interior. The term 

includes artifacts, records, and remains 

that are related to and located within 

such properties. The term includes 

properties of traditional religious and 

cultural importance to an Indian tribe or 

Native Hawaiian organization and that 

meet the National Register criteria.’’ 

In coordinating its responsibilities 

under the NHPA and NEPA, NOAA and 

the FWS intend to identify consulting 

parties; identify historic properties and 

assess the effects of the undertaking on 

such properties; initiate formal 

consultation with the State Historic 

Preservation Officer, the Advisory 

Council of Historic Preservation, and 

other consulting parties; involve the 

public in accordance with NOAA’s 

NEPA procedures, and develop in 

consultation with identified consulting 

parties alternatives and proposed 

measures that might avoid, minimize or 

mitigate any adverse effects on historic 

properties and describe them in any 

environmental assessment or draft 

environmental impact statement. 

Condition Report 

In preparation for this review, NOAA 

has produced a Florida Keys National 

Marine Sanctuary Condition Report 

2011. The Condition Report provides a 

summary of resources and their 

conditions; pressures on those 

resources; the current condition and 

trends of water, habitat, living 

resources; maritime archeological 

resources; human activities that affect 

those resources; and management 

responses to pressures that threaten the 

integrity of the marine environment. 

The report serves as a supporting 

document for the review process, to 

inform constituents of the current status 

of sanctuary resources. 

An electronic copy of the Florida 

Keys National Marine Sanctuary 

Condition Report 2011 is available to 

the public on the Internet at: http:// 

sanctuaries.noaa.gov/science/condition/ 

fknms/welcome.html. 

Scoping Comments 

Scoping meetings provide an 

opportunity to make direct comments 

to, and share information with, NOAA 

and the FWS on the boundaries, zones, 

and regulations of the entire sanctuary, 

and the management of and regulations 

for resources associated with the 

submerged lands of the Key West and 

Great White Heron National Wildlife 

Refuges. We encourage the public to 

participate and welcome any comments 

on the scope, types, and significance of 

issues related to the sanctuary’s 

boundaries and zoning scheme, the 

FWS’s backcountry management plan, 

and associated regulations. In particular, 

we are interested in hearing about the 

public’s view on the potential 

management within specified zones in 

the sanctuary/submerged lands with the 

two refuges for the next ten to fifteen 

years. 

Authority: This notice is published under 

the authority of the National Marine 

Sanctuaries Act, as amended (16 U.S.C. 1431 

et seq; 16 U.S.C. 470), the National Wildlife 

Refuge System Improvement Act of 1997 (16 

U.S.C. 668dd et seq.); and National Historic 

Preservation Act (16 U.S.C. 470). 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Proposed Rules 23429 

Dated: April 6, 2012. 

Daniel J. Basta, 

Director for the Office of National Marine 

Sanctuaries. 

Dated: April 3, 2012. 

Cynthia K. Dohner, 

Regional Director, Fish and Wildlife Service. 

[FR Doc. 2012–9345 Filed 4–18–12; 8:45 am] 

BILLING CODE 3510–NK–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 53 

[REG–144267–11] 

RIN 1545–BK76 

Examples of Program-Related 

Investments 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations that provide 

guidance to private foundations on 

program-related investments. These 

proposed regulations provide a series of 

new examples illustrating investments 

that qualify as program-related 

investments. In addition to private 

foundations, these proposed regulations 

affect foundation managers who 

participate in the making of programrelated investments. 

DATES: Comments and requests for a 

public hearing must be received by July 

18, 2012. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–144267–11), room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–144267– 

11), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent electronically 

via the Federal eRulemaking Portal at 

http://www.regulations.gov/ (IRS REG– 

144267–11). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Courtney D. Jones at (202) 622–6070; 

concerning submissions of comments 

and requests for a public hearing, 

Oluwafunmilayo Taylor, (202) 622–7180 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 4944(a) of the Internal 

Revenue Code (Code) imposes an excise 

tax on a private foundation that makes 

an investment that jeopardizes the 

carrying out of any of the private 

foundation’s exempt purposes (a 

‘‘jeopardizing investment’’). Section 

4944(a) also imposes an excise tax on 

foundation managers who knowingly 

participate in the making of a 

jeopardizing investment. Section 

4944(b) imposes additional excise taxes 

on private foundations and foundation 

managers when investments are not 

timely removed from jeopardy. 

Generally, under § 53.4944–1(a)(2), a 

jeopardizing investment occurs when, 

based on the facts and circumstances at 

the time the investment is made, 

foundation managers fail to exercise 

ordinary business care and prudence in 

providing for the long- and short-term 

financial needs of the foundation. The 

determination of whether an investment 

is a jeopardizing investment is made on 

an investment-by-investment basis, 

taking into account the private 

foundation’s entire portfolio. In 

exercising the requisite standard of care 

and prudence, foundation managers 

may take into account the expected 

investment return, price volatility, and 

the need for portfolio diversification. 

Section 4944(c) excepts programrelated investments (‘‘PRIs’’) from 

treatment as jeopardizing investments. 

The regulations under section 4944(c) 

define a PRI as an investment: (1) The 

primary purpose of which is to 

accomplish one or more of the purposes 

described in section 170(c)(2)(B); (2) no 

significant purpose of which is the 

production of income or the 

appreciation of property; and (3) no 

purpose of which is to accomplish one 

or more of the purposes described in 

section 170(c)(2)(D) (attempting to 

influence legislation or participating in 

or intervening in any political 

campaign). 

An investment is made primarily to 

accomplish one or more of the purposes 

described in section 170(c)(2)(B) 

(referred to as ‘‘charitable purposes’’) if 

it significantly furthers the 

accomplishment of the private 

foundation’s exempt activities and 

would not have been made but for the 

relationship between the investment 

and the accomplishment of those 

exempt activities. In determining 

whether a significant purpose of an 

investment is the production of income 

or the appreciation of property, 

§ 53.4944–3(a)(2)(iii) provides that it 

shall be relevant whether investors who 

are engaged in the investment solely for 

the production of income would be 

likely to make the investment on the 

same terms as the private foundation. 

The regulations under other Code 

sections in Chapter 42 accord special 

tax treatment to PRIs. For example, 

§ 53.4942(a)–2(c)(3)(ii)(d) excludes PRIs 

from the assets a private foundation 

takes into account when determining 

how much it must distribute under 

section 4942 as a ‘‘distributable 

amount’’ for the taxable year. In 

addition, § 53.4942(a)–3(a)(2)(i) 

generally includes distributions that 

qualify as PRIs as ‘‘qualifying 

distributions’’ for purposes of meeting 

the distribution requirements under 

section 4942. Section 53.4943–10(b) 

excludes PRIs from being treated as 

business holdings for the purpose of 

calculating excess business holdings 

subject to excise tax under section 4943. 

Sections 53.4945–5(b)(4) and 53.4945– 

6(c)(1)(i) also make clear that PRIs will 

not constitute taxable expenditures 

under section 4945, provided the 

private foundation exercises 

‘‘expenditure responsibility’’ in 

circumstances in which it is required to 

do so. Among other expenditure 

responsibility requirements, a private 

foundation must require a written 

commitment from the recipient of the 

PRI that the funds received will be used 

only for the purposes of the programrelated investment. As noted, the 

primary purpose of a program-related 

investment must be the accomplishment 

of a charitable purpose. 

Section 53.4944–3(b) contains nine 

examples illustrating investments that 

qualify as PRIs and one example of an 

investment that does not qualify as a 

PRI. The existing examples focus on 

domestic situations principally 

involving economically disadvantaged 

individuals and deteriorated urban 

areas. 

The Treasury Department and the IRS 

are aware that the private foundation 

community would find it helpful if the 

regulations could include additional PRI 

examples that reflect current investment 

practices and illustrate certain 

principles, including that: (1) An 

activity conducted in a foreign country 

furthers a charitable purpose if the same 

activity would further a charitable 

purpose if conducted in the United 

States; (2) the charitable purposes 

served by a PRI are not limited to 

situations involving economically 

disadvantaged individuals and 

deteriorated urban areas; (3) the 

recipients of PRIs need not be within a 

charitable class if they are the 

instruments for furthering a charitable 

purpose; (4) a potentially high rate of 

return does not automatically prevent 

an investment from qualifying as 

program-related; (5) PRIs can be 

achieved through a variety of 


tkelley on DSK3SPTVN1PROD with PROPOSALS