24452 Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Proposed Rules 

FOR FURTHER INFORMATION CONTACT: 

Margaret Sieffert, Environmental 

Engineer, Environmental Protection 

Agency, Region 5, 77 West Jackson 

Boulevard (AT–18J), Chicago, Illinois 

60604, (312) 353–1151, 

sieffert.margaret@epa.gov. 

SUPPLEMENTARY INFORMATION: In the 

Rules section of this Federal Register, 

EPA is approving the State’s submittal 

as a direct final rule without prior 

proposal because the Agency views this 

as a noncontroversial submittal and 

anticipates no adverse comments. A 

detailed rationale for the approval is set 

forth in the direct final rule. If no 

adverse comments are received in 

response to this rule, no further activity 

is contemplated. If EPA receives adverse 

comments, the direct final rule will be 

withdrawn and all public comments 

received will be addressed in a 

subsequent final rule based on this 

proposed rule. EPA will not institute a 

second comment period. Any parties 

interested in commenting on this action 

should do so at this time. Please note 

that if EPA receives adverse comment 

on an amendment, paragraph, or section 

of this rule and if that provision may be 

severed from the remainder of the rule, 

EPA may adopt as final those provisions 

of the rule that are not the subject of an 

adverse comment. For additional 

information, see the direct final rule 

which is located in the Rules section of 

this Federal Register. 

Dated: April 9, 2012. 

Susan Hedman, 

Regional Administrator, Region 5. 

[FR Doc. 2012–9722 Filed 4–23–12; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 1 and 25 

[IB Docket No. 11–133; DA 12–573] 

Foreign Ownership Policies 

AGENCY: Federal Communications 

Commission. 

ACTION: Proposed rule. 

SUMMARY: In this document, the 

International Bureau, on behalf of the 

Commission, seeks further comment on 

an approach to policies and procedures 

that apply to foreign ownership of 

common carrier radio station licensees 

pursuant to the Communications Act of 

1934, as amended (‘‘the Act’’). It seeks 

comment because this approach was not 

discussed in the Notice of Proposed 

Rulemaking initiating this docket or in 

the comments filed to date in response 

to the Notice of Proposed Rulemaking. 

DATES: Comments shall be filed May 15, 

2012. Reply comments shall be filed 

May 25, 2012. 

ADDRESSES: All pleadings are to 

reference IB Docket No. 11–133. 

Comments may be filed using the 

Commission’s Electronic Comment 

Filing System (ECFS) or by filing paper 

copies. 

D Electronic Filers: Comments may be 

filed electronically using the Internet by 

accessing the ECFS: http:// 

fjallfoss.fcc.gov/ecfs2/. 

D Paper Filers: Parties who choose to 

file by paper must file an original and 

one copy of each filing. If more than one 

docket or rulemaking number appears in 

the caption of this proceeding, filers 

must submit two additional copies for 

each additional docket or rulemaking 

number. 

Filings can be sent by hand or 

messenger delivery, by commercial 

overnight courier, or by first-class or 

overnight U.S. Postal Service mail. All 

filings must be addressed to the 

Commission’s Secretary, Office of the 

Secretary, Federal Communications 

Commission. 

All hand-delivered or messengerdelivered paper filings for the 

Commission’s Secretary must be 

delivered to FCC Headquarters at 445 

12th St. SW., Room TW–A325, 

Washington, DC 20554. All hand 

deliveries must be held together with 

rubber bands or fasteners. Any 

envelopes must be disposed of before 

entering the building. The filing hours 

are 8 a.m. to 7 p.m. Commercial 

overnight mail (other than U.S. Postal 

Service Express Mail and Priority Mail) 

must be sent to 9300 East Hampton 

Drive, Capitol Heights, MD 20743. U.S. 

Postal Service first-class, Express, and 

Priority mail must be addressed to 445 

12th Street SW., Washington, DC 20554. 

People with Disabilities: To request 

materials in accessible formats for 

people with disabilities (Braille, large 

print, electronic files, audio format), 

send an email to fcc504@fcc.gov or call 

the Consumer & Governmental Affairs 

Bureau at (202) 418–0530 (voice), (202) 

418–0432 (tty). 

In addition, one copy of each pleading 

must be sent to each of the following: 

(1) The Commission’s duplicating 

contractor, Best Copy and Printing, Inc., 

Portals II, 445 12th Street SW., Room 

CY–B402, Washington, DC 20554, 

www.bcpiweb.com; telephone: (800) 

378–3160, fax: (202) 488–5563; 

(2) James Ball, Chief, Policy Division, 

International Bureau, 445 12th Street 

SW., Room 7–A760, Washington, DC 

20554; email: james.ball@fcc.gov; 

(3) Howard Griboff, Deputy Chief, 

Policy Division, International Bureau, 

445 12th Street SW., Room 7–A662, 

Washington, DC 20554; email: 

howard.griboff@fcc.gov; 

(4) Kathleen Collins, AttorneyAdvisor, Policy Division, International 

Bureau, 445 12th Street SW., Room 7– 

A515, Washington, DC 20554; email: 

kathleen.collins@fcc.gov. 

Filings and comments are also 

available for public inspection and 

copying during regular business hours 

at the FCC Reference Information 

Center, Portals II, 445 12th Street SW., 

Room CY–A257, Washington, DC 20554. 

They may also be purchased from the 

Commission’s duplicating contractor, 

Best Copy and Printing, Inc., Portals II, 

445 12th Street SW., Room CY–B402, 

Washington, DC 20554, telephone: (800) 

378–3160, fax: (202) 488–5563, or via its 

Web site, http://www.bcpiweb.com. 

This matter shall be treated as a 

‘‘permit-but-disclose’’ proceeding in 

accordance with the Commission’s ex 

parte rules, 47 CFR 1.1200 et seq. 

Persons making ex parte presentations 

must file a copy of any written 

presentation or a memorandum 

summarizing any oral presentation 

within two business days after the 

presentation (unless a different deadline 

applicable to the Sunshine period 

applies). Persons making oral ex parte 

presentations are reminded that 

memoranda summarizing the 

presentation must (1) list all persons 

attending or otherwise participating in 

the meeting at which the ex parte 

presentation was made, and (2) 

summarize all data presented and 

arguments made during the 

presentation. If the presentation 

consisted in whole or in part of the 

presentation of data or arguments 

already reflected in the presenter’s 

written comments, memoranda or other 

filings in the proceeding, the presenter 

may provide citations to such data or 

arguments in his or her prior comments, 

memoranda, or other filings (specifying 

the relevant page and/or paragraph 

numbers where such data or arguments 

can be found) in lieu of summarizing 

them in the memorandum. Documents 

shown or given to Commission staff 

during ex parte meetings are deemed to 

be written ex parte presentations and 

must be filed consistent with rule 

§ 1.1206(b). In proceedings governed by 

rule § 1.49(f) or for which the 

Commission has made available a 

method of electronic filing, written ex 

parte presentations and memoranda 

summarizing oral ex parte 

presentations, and all attachments 

thereto, must be filed through the 

electronic comment filing system 

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Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Proposed Rules 24453 

1There is Commission precedent that has applied 

section 310(b)(4) where a foreign government, entity 

or individual holds interests in a U.S.-organized 

entity that itself controls a broadcast, common 

carrier, or aeronautical radio station licensee, and 

section 310(b)(3) where a foreign government, entity 

or individual holds interests in a licensee through 

a U.S.-organized entity that has non-controlling 

interests in the licensee. See, e.g., Wilner & 

Scheiner I, 103 F.C.C. 2d 511, 521–24, paragraphs 

17–22 & nn. 44–56 (1985), recon., Wilner & 

Scheiner II, 1 FCC Rcd 12 (1986); Applications of 

Cellco Partnership d/b/a Verizon Wireless and 

Atlantis Holdings LLC, WT Docket No. 08–95, 

Memorandum Opinion and Order and Declaratory 

Ruling, 23 FCC Rcd 17444, 17545–46, paragraph 

231 & nn. 799–803, 17547, paragraph 237 (2008). 

Commenters assert there is contrary precedent. 

2The section 310(b)(4) policy framework employs 

an open entry standard for foreign investment from 

WTO Member countries in U.S. basic 

telecommunications markets. In the Foreign 

Participation Order, which adopted this standard, 

the Commission concluded, pursuant to the 

discretionary authority granted to the Commission 

in section 310(b)(4), that the public interest would 

be served by permitting greater investment by 

foreign individuals and entities from WTO Member 

countries in the U.S.-organized entities that control 

common carrier and aeronautical radio licensees. 

See Foreign Participation Order, 12 FCC Rcd at 

23891–97, paragraphs 1–12, 23935–42, paragraphs 

97–118. The Commission adopted a rebuttable 

presumption by which it presumes that foreign 

investment from WTO Member countries does not 

pose competitive concerns in the U.S. market See 

also Section 310(b)(4) NPRM, 26 FCC Rcd at 11705, 

paragraph 2, nn.4–5. The language of section 

310(b)(3) does not include the public interest test 

set forth in section 310(b)(4). 47 U.S.C. 310(b)(3). 

available for that proceeding, and must 

be filed in their native format (e.g., .doc, 

.xml, .ppt, searchable .pdf). Participants 

in this proceeding should familiarize 

themselves with the Commission’s ex 

parte rules. 

FOR FURTHER INFORMATION CONTACT: 

Kathleen Collins, Attorney-Advisor, 

Policy Division, International Bureau at 

(202) 418–1474 or kathleen.collins 

@fcc.gov. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Public 

Notice, DA 12–573, released on April 

11, 2012. The full text of this document 

is available for inspection and copying 

during normal business hours in the 

FCC Reference Information Center, 

Portals II, 445 12th Street SW., Room 

CY–A257, Washington, DC 20554. The 

complete text may also be purchased 

from the Commission’s duplicating 

contractor, Best Copy and Printing, Inc., 

Portals II, 445 12th Street SW., Room 

CY–B402, Washington, DC 20554, 

telephone: (800) 378–3160, fax: (202) 

488–5563, or via its Web site, http:// 

www.bcpiweb.com. The complete text is 

also available on the Commission’s Web 

site at http://transition.fcc.gov/ 

Daily_Releases/Daily_Business/2012/ 

db0411/DA-12-573A1.pdf. To request 

the document in accessible formats for 

people with disabilities (Braille, large 

print, electronic files, audio format), 

send an email to fcc504@fcc.gov or call 

the Consumer & Governmental Affairs 

Bureau at 202–418–0530 (voice), 202– 

418–0432 (tty). 

In Review of Foreign Ownership 

Policies for Common Carrier and 

Aeronautical Radio Licensees under 

Section 310(b)(4) of the 

Communications Act of 1934, as 

Amended, IB Docket No. 11–133, Notice 

of Proposed Rulemaking, FCC 11–121, 

26 FCC Rcd 11703 (2011) (Section 

310(b)(4) NPRM), the Commission 

sought comment on proposals to revise 

and simplify the policies and 

procedures that apply to foreign 

ownership of common carrier and 

aeronautical radio station licensees 

pursuant to section 310(b)(4) of the Act. 

Although the Commission did not 

specifically seek comment on its 

policies and procedures relating to 

section 310(b)(3), several commenters 

asked the Commission to find that all 

‘‘indirect’’ foreign interests in a common 

carrier licensee should be governed 

under section 310(b)(4), rather than 

section 310(b)(3). They are concerned 

that applying section 310(b)(3) to 

‘‘indirect’’ foreign interests in common 

carrier licensees may limit the flexibility 

of foreign investors in structuring their 

investments. Commenters also state that 

applying section 310(b)(3) to foreign 

interests in a licensee held through an 

intervening U.S.-organized entity that 

does not control the licensee (which 

commenters term ‘‘indirect noncontrolling’’ foreign interests) is 

inconsistent with the U.S. commitments 

made in the World Trade Organization 

(WTO) Basic Telecom Agreement. 

Commenters state that a determination 

that section 310(b)(3) does not apply in 

this situation would be one of the ‘‘most 

helpful actions’’ the Commission could 

take to further this proceeding’s goals of 

reducing unnecessary regulatory 

barriers to foreign investment that can 

benefit innovation, economic growth, 

and employment in the United States. 

By this Public Notice, the 

International Bureau seeks public 

comment on an approach not 

specifically raised by the comments to 

date. In particular, we invite comment 

on the legal and policy implications of 

forbearing under section 10 of the Act, 

47 U.S.C. 160, from applying section 

310(b)(3) to certain foreign interests in 

common carrier licensees if—contrary to 

the comments discussed above—section 

310(b)(3) is interpreted as applying to 

foreign interests in a broadcast, common 

carrier or aeronautical licensee held 

through an intervening U.S.-organized 

entity that itself holds non-controlling 

equity and voting interests in the 

licensee.1 Section 10 provides that the 

Commission shall forbear from applying 

any regulation or any provision of the 

Act to a telecommunications carrier if 

the Commission determines that: (1) 

Enforcement of such regulation or 

provision is not necessary to ensure that 

the charges, practices, classifications, or 

regulations by, for, or in connection 

with that telecommunications carrier or 

telecommunications service are just and 

reasonable and are not unjustly or 

unreasonably discriminatory; (2) 

enforcement of such regulation or 

provision is not necessary for the 

protection of consumers; and (3) 

forbearance from applying such 

provision or regulation is consistent 

with the public interest. 47 U.S.C. 160. 

Under a forbearance approach, the 

Commission might forbear from 

applying section 310(b)(3) to foreign 

interests held in a common carrier 

licensee, through a U.S.-organized entity 

that does not control the licensee, that 

would exceed 20 percent of the 

licensee’s equity interests and/or 20 

percent of its voting interests, where the 

Commission finds the particular foreign 

interests to be consistent with the 

foreign ownership policies the 

Commission applies under section 

310(b)(4) of the Act. The Commission 

would not grant forbearance when 

applying section 310(b)(3) to broadcast, 

aeronautical fixed, and aeronautical en 

route licenses, as these services are not 

telecommunications services to which 

section 10 forbearance applies. Foreign 

ownership of broadcasting licenses, 

moreover, raises distinct policy issues, 

see Section 310(b)(4) NPRM, 26 FCC 

Rcd at 11704, n.3, and is not subject to 

the WTO Basic Telecom Agreement. 

We seek comment on this general 

approach. We specifically seek 

comment on whether a forbearance 

approach would satisfy the three 

requirements of section 10 of the Act. 

We further request comment on whether 

this forbearance approach would permit 

the Commission to authorize greater 

than 20 percent foreign interests held in 

a common carrier licensee, through a 

U.S.-organized entity that does not 

control the licensee, when those 

interests would be consistent with the 

public interest under the policy 

framework established by section 

310(b)(4) and the Foreign Participation 

Order, 12 FCC Rcd 23891 (1997).2 We 

ask whether such a forbearance 

approach would treat all ‘‘indirect’’ 

foreign interests similarly (whether 

through a controlling or non-controlling 

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24454 Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Proposed Rules 

3 In assessing the public interest, the Commission 

takes into account the record developed in each 

particular case and accords deference to the 

expertise of Executive Branch agencies in 

identifying and interpreting issues of concern 

related to national security, law enforcement, 

foreign policy and trade policy. Foreign 

Participation Order, 12 FCC Rcd at 23919–21, 

paragraphs 61–66. 

4The Commission, or the International Bureau on 

delegated authority, in granting a section 310(b)(4) 

declaratory ruling: (1) Authorizes the named foreign 

investors from WTO Member countries to hold 

specified equity and voting interests in the U.S. 

parent that controls the licensee; (2) includes 

provisions and limitations to accommodate future 

changes in foreign ownership of the U.S. parent and 

to prohibit non-WTO investment from exceeding 25 

percent of the U.S. parent’s equity and/or voting 

interests; and (3), on a case-by-case basis, imposes 

specific conditions that respond to concerns raised 

by the Executive Branch in particular proceedings 

with respect to potential effects of the proposed 

foreign investment on U.S. national security, law 

enforcement, and public safety. Section 310(b)(4) 

NPRM, 26 FCC Rcd at 11712, paragraph 15. 

U.S. organized entity), as requested by 

commenters. 

We further seek public comment on 

whether forbearance from application of 

section 310(b)(3) in this context, if 

adopted by the Commission, should 

apply procedures like those used when 

licensees seek Commission approval to 

exceed the 25 percent foreign ownership 

benchmark in section 310(b)(4). If that 

approach were applied, it would require 

licensees to file a petition for 

declaratory ruling when seeking 

Commission approval of foreign 

interests held in a common carrier 

licensee, through an intervening U.S. 

entity that does not control the licensee, 

that would exceed 20 percent of the 

equity interests and/or 20 percent of the 

voting interests in the licensee. The 

Commission would place the petition 

on notice for public comment and 

forward the petition to the Executive 

Branch for review.3 Following 

conclusion of the public notice and 

comment process, the Commission 

would issue a declaratory ruling, 

consistent with its section 310(b)(4) 

policy framework, as to whether the 

foreign investment would be consistent 

with the public interest.4 If the ruling is 

affirmative (i.e., the Commission 

determines that such investment 

comports with the public interest), the 

Commission would forbear from 

applying the section 310(b)(3) 

restrictions that would otherwise 

prohibit the foreign investment. 

We ask in particular that interested 

parties who contend that the 

forbearance proposals discussed above 

would or would not adequately address 

national security, law enforcement, or 

public safety concerns, or that they 

would advance or conflict with U.S. 

trade policy, explain their positions in 

detail and provide support for their 

conclusions. In addition, if the 

Commission alters in this docket the 

policies and procedures that apply to 

section 310(b)(4), should it apply those 

same revisions to its public interest 

review under any section 310(b)(3) 

forbearance approach that also is 

adopted? 

We further seek comment on 

modifications to these proposals, or 

alternative forbearance approaches, that 

parties may want the Commission to 

consider. 

Federal Communications Commission. 

Mindel De La Torre, 

Chief, International Bureau. 

[FR Doc. 2012–9623 Filed 4–23–12; 8:45 am] 

BILLING CODE 6712–01–P 

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