Federal Register / Vol. 65, No. 202 / Wednesday, October 18, 2000 / Rules and Regulations 62295

(5) Vessels described in paragraph (d)

of this section may not enter the waters

between Commercial Anchorage G and

the Middle Breakwater as defined by an

area enclosed by the line beginning at

Los Angeles Main Channel Entrance

Light 2 (33°42.70′ N, 118°14.70′ W),

thence east along the Middle Breakwater

to Long Beach Light (33°43.40′ N,

118°11.20′ W), thence south to

(33°43.08′ N, 118°11.26′ W), thence

westerly to (33°43.08′ N, 118°12.26′ W),

thence southwesterly parallel to the

breakwater to (33°42.43′ N, 118°14.30′

W), thence to the point of origin, unless

such vessel is:

(i) In an emergency;

(ii) Proceeding to anchor in or

departing Commercial Anchorage G;

(iii) Standing by with confirmed pilot

boarding arrangements; or,

(iv) Engaged in towing vessels to or

from Commercial Anchorage G, or to or

from the waters between Commercial

Anchorage G and the Middle

Breakwater.

Dated: October 2, 2000.

C.D. Wurster,

Captain, U.S. Coast Guard, Commander,

Eleventh U.S. Coast Guard District, Acting.

[FR Doc. 00–26773 Filed 10–17–00; 8:45 am]

BILLING CODE 4910–15–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Parts 52 and 81

[MO 114–1114a; FRL–6885–6]

Approval and Promulgation of

Implementation Plans; State of

Missouri; Designation of Areas for Air

Quality Planning Purposes, Dent

Township

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule.

SUMMARY: EPA is announcing the

redesignation of the lead nonattainment

area in western Iron County, Missouri,

to attainment of the National Ambient

Air Quality Standards (NAAQS). We are

approving the maintenance plan for this

area including a consent order which

was submitted with the redesignation

request, and we are also approving the

revision to Missouri’s Restriction of

Emissions of Lead From Specific Lead

Smelter-Refinery Installations rule

which ensures the permanent and

enforceable emission reductions by

clarifying the emissions limits for the

Doe Run Resource Recycling Facility,

and removes the text which could have

allowed this facility to resume operation

as a primary smelter.

DATES: This rule is effective on

December 18, 2000 without further

notice, unless EPA receives adverse

written comment by November 17,

2000. If EPA receives such comments, it

will publish a timely withdrawal of the

direct final rule in the Federal Register

and inform the public that the rule will

not take effect.

ADDRESSES: Written comments must be

submitted to Kim Johnson, Air Planning

and Development Branch, 901 North 5th

Street, Kansas City, Kansas 66101.

Copies of documents relative to this

action are available for public

inspection during normal business

hours at the above listed Region 7

location. The interested persons

wanting to examine these documents

should make an appointment with the

office at least 24 hours in advance.

FOR FURTHER INFORMATION CONTACT: Kim

Johnson at (913) 551–7975.

SUPPLEMENTARY INFORMATION:

Throughout this document whenever

‘‘we, us, or our’’ is used, we mean EPA.

This section provides additional

information by addressing the following

questions:

What Is a State Implementation Plan (SIP)?

What is the Federal approval process for a

SIP?

What does Federal approval of a state

regulation mean to me?

What requirements must be followed for

redesignations to attainment?

What is being addressed in this document?

Have the requirements for approval of a

SIP revision and redesignation to attainment

been met?

What action is EPA taking?

What Is a State Implementation Plan

(SIP)?

Section 110 of the Clean Air Act

(CAA) requires states to develop air

pollution regulations and control

strategies to ensure that state air quality

meets the national ambient air quality

standards established by EPA. These

ambient standards are established under

section 109 of the CAA, and they

currently address six criteria pollutants.

These pollutants are: carbon monoxide,

nitrogen dioxide, ozone, lead,

particulate matter, and sulfur dioxide.

Each state must submit these

regulations and control strategies to EPA

for approval and incorporation into the

Federally enforceable SIP.

Each Federally approved SIP protects

air quality primarily by addressing air

pollution at its point of origin. These

SIPs can be extensive, containing state

regulations or other enforceable

documents and supporting information

such as emission inventories,

monitoring networks, and modeling

demonstrations.

What Is the Federal Approval Process

for a SIP?

In order for state regulations to be

incorporated into the Federally

enforceable SIP, states must formally

adopt the regulations and control

strategies consistent with state and

Federal requirements. This process

generally includes a public notice,

public hearing, public comment period,

and a formal adoption by a stateauthorized rulemaking body.

Once a state rule, regulation, or

control strategy is adopted, the state

submits it to us for inclusion into the

SIP. We must provide public notice and

seek additional public comment

regarding the proposed Federal action

on the state submission. If adverse

comments are received, they must be

addressed prior to any final Federal

action by us.

All state regulations and supporting

information approved by EPA under

section 110 of the CAA are incorporated

into the Federally approved SIP.

Records of such SIP actions are

maintained in the Code of Federal

Regulations (CFR) at Title 40, part 52,

entitled ‘‘Approval and Promulgation of

Implementation Plans.’’ The actual state

regulations which are approved are not

reproduced in their entirety in the CFR

outright but are ‘‘incorporated by

reference,’’ which means that we have

approved a given state regulation with

a specific effective date.

What does Federal approval of a state

regulation mean to me?

Enforcement of the state regulation

before and after it is incorporated into

the Federally approved SIP is primarily

a state responsibility. However, after the

regulation is Federally approved, we are

authorized to take enforcement action

against violators. Citizens are also

offered legal recourse to address

violations as described in section 304 of

the CAA.

What requirements must be followed

for redesignation to attainment?

Under section 307(d) of the CAA, we

are required to promulgate designations

of areas identifying their status with

respect to attainment of the ambient

standards described previously. We are

required to determine whether each area

is attaining the standard, not attaining

the standard, or cannot be designated

based on available information. Once an

area is designated as nonattainment for

a standard, it cannot be redesignated to

attainment until the requirements of

section 107(d)(3)(E) of the CAA are met.

These requirements are discussed

below, and include a revision to the SIP

62296 Federal Register / Vol. 65, No. 202 / Wednesday, October 18, 2000 / Rules and Regulations

to show how the state, in which the area

is located, plans to maintain the

standards in the future in the area to be

redesignated to attainment.

What is being addressed in this

document?

We are redesignating the

nonattainment area in western Iron

County, Missouri, to attainment for lead

and taking final action to approve the

submission for the Doe Run Resource

Recycling Facility near Bixby, Missouri,

as an amendment to the SIP.

We are also taking final action to

approve the revision to rule 10 CSR 10–

6.120, Restriction of Emissions of Lead

From Specific Lead Smelter-Refinery

Installations, as an amendment to the

SIP.

The basis for our approval of the rule

is described in this notice, and in more

detail in the technical support

document (TSD) prepared for this

action. The TSD is available at the

address identified above.

The purpose of the submittal is to

meet the criteria under section 107(d)(3)

of the Clean Air Act Amendments

(CAAA) for redesignation of the

nonattainment area in western Iron

County to attainment for the lead

standard.

The area was designated as

nonattainment for lead in November

1991, effective January 6, 1992. The

boundaries of the nonattainment area

follow the Dent Township in western

Iron County, Missouri. The major source

of lead emissions in this nonattainment

area is the Doe Run Resource Recycling

Facility, near Bixby, Missouri.

Primary smelting of lead began at this

location in 1968, but the current facility

ceased operation as a primary smelter in

1988 and has been operating as a

secondary smelter and resource

recovery operation since 1991.

Section 107(d)(3) of the CAAA

establishes the five requirements to be

met before we can designate an area

from nonattainment area to attainment.

These are:

A. The area has attained the NAAQS;

B. The area has a fully approved SIP

under section 110(k) of the act;

C. We have determined that the

improvement in air quality is due to

permanent and enforceable emissions

reductions;

D. We have determined that the

maintenance plan for the area has met

the requirements of section 175A of the

Act and;

E. The state has met all requirements

applicable to the area under section 110

and part D.

Attainment of the NAAQS

The state submittal provided ambient

air monitor data showing that this area

has consistently shown compliance

with the NAAQS for lead since the

second quarter of 1988. The NAAQS for

lead is 1.5 micrograms per cubic meter

(1.5 μg/m3, maximum quarterly average.

A quarterly average is considered a

violation of the standard if it is at least

1.6 μg/m3 when rounded to the tenths

from the hundredths place when

monitored.

Air dispersion modeling using the

ISCST Version 3 dated June 24, 1999,

was used to evaluate the concentration

of lead resulting from operations at the

Doe Run Resource Recycling Facility.

The maximum concentration predicted

by the model was a value of 0.73 μg/m3

which is in compliance with the lead

standard.

Fully Approved SIP

Missouri submitted part D

nonattainment SIPs for the Doe Run

Resource Recycling Facility and its

predecessor in 1980 and in 1993 and

1994. The SIPs established emission,

operational and work practice

standards. These requirements included

enforceable throughput and emission

point limits, identified emission control

projects that the facility would have to

complete prior to processing lead

concentration and producing primary

lead, and established contingency

measures to reduce fugitive emissions

for the secondary process. The 1980 part

D nonattainment SIP was approved on

April 27, 1981, (46 FR 23412) and the

1993/1994 submission was fully

approved under section 110(k) of the

CAA, as a revision to the Missouri SIP

on August 4, 1995 (60 FR 39851). A

detailed discussion of the latter SIP

revision can be found in the August 4,

1995, Federal Register notice.

Permanent and Enforceable Emissions

Reductions

The permanent and enforceable

emission reductions at the Doe Run

Resource Recycling Facility include

implementation of the part D

nonattainment SIP, permanent closure

of the primary lead smelting operation,

controls on the secondary lead smelting

operation, and the installation of

reasonably available control technology

and reasonably available control

measures.

The revision to rule 10 CSR 10–6.120,

Restriction of Emissions of Lead From

Specific Lead Smelter-Refinery

Installations, ensures the permanent and

enforceable emission reductions by

clarifying the emissions limits for the

facility and removing the text which

could have allowed this facility to

resume operation as a primary smelter.

Because no violations of the lead

standard have occurred since the facility

ceased operation as a primary smelter in

1988, we believe that this clarification

will make enforceable the operating

scenario which has led to air quality

improvements and attainment of the

standard.

Fully Approved Maintenance Plan

The maintenance plan submitted as

part of the SIP revision provides for

maintenance of the relevant NAAQS in

the area for at least ten years after the

approval of redesignation to attainment.

The maintenance plan for the Doe

Run Resources Recycling Facility

addresses the monitoring network, the

emission inventory, the maintenance

demonstration, and verification of

continued attainment, as described in

more detail in the TSD. The plan also

includes contingency measures, which

require additional paving and roadway

sweeping, and improvements to

baghouse controls, to be implemented if

monitored violations occur in the

future. The contingency measures are

specified in the consent order which

was approved by MDNR and Doe Run.

Eight years after the redesignation, the

state has committed to submit a revised

maintenance plan demonstrating

attainment for ten years following the

initial ten-year period.

Part D and Section 110

The state has met these requirements

by submitting and implementing the

nonattainment plan to bring the area

back into attainment and subsequently

by submitting an appropriate

maintenance plan to keep the area in

attainment, as described previously in

this notice and in the TSD.

Rule Revision

The revision to rule 10 CSR 10–6.120,

Restriction of Emissions of Lead From

Specific Lead Smelter-Refinery

Installations, is an important part of the

redesignation process for this

nonattainment area. The changes to the

rule include revising the emissions

limits for the Doe Run Resource

Recycling Facility and removing all text

which could have allowed this facility

to resume operation as a primary

smelter. Another significant change

modifies the title of the rule, consistent

with the changes in the body of the rule,

so that the rule applies to ‘‘specific’’

lead smelters (including secondary

smelters) rather than addressing only

‘‘primary’’ lead smelters.

Federal Register / Vol. 65, No. 202 / Wednesday, October 18, 2000 / Rules and Regulations 62297

Have the requirements for approval of

a SIP revision and redesignation to

attainment been met?

The state submittal has met the public

notice requirements for SIP submissions

in accordance with 40 CFR 51.102. The

submittal also satisfied the

completeness criteria of 40 CFR part 51,

appendix V. In addition, as explained

above and in more detail in the TSD

which is part of this document, the

revision meets the substantive SIP

requirements of the CAA, including

section 110 and implementing

regulations. The state submittal also

meets the criteria for redesignation to

attainment in section 107(d)(3) of the

CAA, as explained above and in the

TSD.

What action is EPA taking?

We are taking final action to approve

the submission for the Doe Run

Resource Recycling Facility near Bixby,

Missouri, as an amendment to the SIP

and redesignate the nonattainment area

in western Iron County, Missouri, to

attainment for lead.

We are also taking final action to

approve the revision to rule 10 CSR 10–

6.120, Restriction of Emissions of Lead

From Specific Lead Smelter-Refinery

Installations, as an amendment to the

SIP.

We are processing this action as a

final action because the revisions make

routine changes to the existing rules

which are noncontroversial, and

because the area has been attaining the

lead standard since 1988 based on

monitored data. Therefore, we do not

anticipate any adverse comments.

Administrative Requirements

Under Executive Order 12866 (58 FR

51735, October 4, 1993), this action is

not a ‘‘significant regulatory action’’ and

therefore is not subject to review by the

Office of Management and Budget. This

action merely approves state law as

meeting Federal requirements and

imposes no additional requirements

beyond those imposed by state law.

Accordingly, the Administrator certifies

that this rule will not have a significant

economic impact on a substantial

number of small entities under the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.). This rule approves preexisting

requirements under state law. In

addition, the redesignation is an action

which affects the status of a geographic

area but does not impose any new

requirements on governmental entities

or sources. Therefore, it does not impose

any additional enforceable duty beyond

that required by state law, it does not

contain any unfunded mandate or

significantly or uniquely affect small

governments, as described in the

Unfunded Mandates Reform Act of 1995

(Public Law 104–4). For the same

reason, this rule also does not

significantly or uniquely affect the

communities of tribal governments, as

specified by Executive Order 13084 (63

FR 27655, May 10, 1998). This rule will

not have substantial direct effects on the

states, on the relationship between the

national government and the states, or

on the distribution of power and

responsibilities among the various

levels of government, as specified in

Executive Order 13132 (64 FR 43255,

August 10, 1999), because it merely

approves a state rule implementing a

Federal standard, and does not alter the

relationship or the distribution of power

and responsibilities established in the

CAA. This rule also is not subject to

Executive Order 13045 (62 FR 19885,

April 23, 1997), because it is not

economically significant.

In reviewing SIP submissions, our

role is to approve state choices,

provided that they meet the criteria of

the CAA. In this context, in the absence

of a prior existing requirement for the

state to use voluntary consensus

standards (VCS), we have no authority

to disapprove a SIP submission for

failure to use VCS. It would thus be

inconsistent with applicable law for

EPA, when it reviews a SIP submission,

to use VCS in place of a SIP submission

that otherwise satisfies the provisions of

the CAA. Thus, the requirements of

section 12(d) of the National

Technology Transfer and Advancement

Act of 1995 (15 U.S.C. 272 note) do not

apply. As required by section 3 of

Executive Order 12988 (61 FR 4729,

February 7, 1996), in issuing this rule,

we have taken the necessary steps to

eliminate drafting errors and ambiguity,

minimize potential litigation, and

provide a clear legal standard for

affected conduct. EPA has complied

with Executive Order 12630 (53 FR

8859, March 15, 1988) by examining the

takings implications of the rule in

accordance with the ‘‘Attorney

General’s Supplemental Guidelines for

the Evaluation of Risk and Avoidance of

Unanticipated Takings’’ issued under

the Executive Order. This rule does not

impose an information collection

burden under the provisions of the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501 et seq.).

The Congressional Review Act, 5

U.S.C. 801 et seq., as added by the Small

Business Regulatory Enforcement

Fairness Act of 1996, generally provides

that before a rule may take effect, the

agency promulgating the rule must

submit a rule report, which includes a

copy of the rule, to each House of the

Congress and to the Comptroller General

of the United States. We will submit a

report containing this rule and other

required information to the United

States Senate, the United States House

of Representatives, and the Comptroller

General of the United States prior to

publication of the rule in the Federal

Register. A major rule cannot take effect

until 60 days after it is published in the

Federal Register. This action is not a

‘‘major rule’’ as defined by 5 U.S.C.

804(2).

Under section 307(b)(1) of the CAA,

petitions for judicial review of this

action must be filed in the United States

Court of Appeals for the appropriate

circuit by December 18, 2000. Filing a

petition for reconsideration by the

Administrator of this final rule does not

affect the finality of this rule for the

purposes of judicial review nor does it

extend the time within which a petition

for judicial review may be filed, and

shall not postpone the effectiveness of

such rule or action. This action may not

be challenged later in proceedings to

enforce its requirements. (See section

307(b)(2).)

List of Subjects

40 CFR Part 52

Environmental protection, Air

pollution control, Carbon monoxide,

Hydrocarbons, Incorporation by

reference, Intergovernmental relations,

Lead, Nitrogen dioxide, Ozone,

Particulate matter, Reporting and

recordkeeping requirements, Sulfur

oxides.

40 CFR Part 81

Environmental protection, Air

pollution control, Lead.

Authority: 42 U.S.C. 7401 et seq.

Dated: September 27, 2000.

Dennis Grams,

Regional Administrator, Region 7.

Chapter I, title 40 of the Code of

Federal Regulations is amended as

follows:

PART 52—[AMENDED]

1. The authority citation for part 52

continues to read as follows:

Authority: 42 U.S.C. 7401 et seq.

Subpart AA—Missouri

2. Section 52.1320 is amended by:

a. In the table to paragraph (c),

Chapter 6, revise the entry for 10–6.120.

The revision reads as follows:

§ 52.1320 Identification of plan.

* * * * *

62298 Federal Register / Vol. 65, No. 202 / Wednesday, October 18, 2000 / Rules and Regulations

(c) * * *

EPA-APPROVED MISSOURI REGULATIONS

Missouri citation Title State effective date EPA approval date Explanation

Missouri Department of Natural Resources

*******

Chapter 6—Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control Regulations for the State of

Missouri

*******

10–6.120 .................... Restriction of Emissions of Lead from Specific Lead Smelter-Refinery Installations.October 30, 1998 ....... [insert FR cite] October 18, 2000.

*******

b. In the table to paragraph (d), by adding entry ‘‘Doe Run Resource Recycling Facility near Buick, Missouri’’,

immediately before the center heading ‘‘St. Louis City Incinerator Permits’’.

The addition reads as follows:

§ 52.1320 Identification of plan.

* * * * *

(d) * * *

EPA-APPROVED SOURCE SPECIFIC PERMITS AND ORDERS

Name of source Order/permit number State effective date EPA approval date Explanation

*******

Doe Run Resource Recycling Facility near

Buick, MO.

Consent Order ........... May 11, 2000 ............. October 18, 2000.

*******

c. In the table to paragraph (e), by adding entry for Doe Run Resource Recycling Facility at the end of the table.

The addition reads as follows:

§ 52.1320 Identification of plan.

* * * * *

(e) * * *

EPA-APPROVED MISSOURI NONREGULATORY SIP PROVISIONS

Name of nonregulatory SIP provision Applicable geographic

or nonattainment area State submitted date EPA approval date Explanation

*******

Doe Run Resource Recycling Facility near

Buick, MO.

Dent Township in Iron

County.

May 17, 2000 ............. October 18, 2000.

PART 81—[AMENDED]

1. The authority citation for part 81

continues to read as follows:

Authority: 42 U.S.C. 7401 et seq.

Subpart C—Section 107 Attainment

Status Designations

2. The table in § 81.326 entitled

‘‘Missouri Lead’’ is amended to revise

the first entry for Iron County to read as

follows:

§ 81.326 Missouri.

* * * * *

Missouri—Lead

Designated area

Designation Classification

Date Type Date Type

Iron County (part) Within boundaries of Dent Township October 18, 2000 ............... Attainment.

Federal Register / Vol. 65, No. 202 / Wednesday, October 18, 2000 / Rules and Regulations 62299

[FR Doc. 00–26501 Filed 10–17–00; 8:45 am]

BILLING CODE 6560–50–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[DA 00–2238; MM Docket No. 99–278; RM–

9424]

Radio Broadcasting Services;

Susquehanna, PA and Conklin, NY

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission, at the joint

request of Majac of Michigan, Inc., and

Equinox Broadcasting Corporation,

reallots Channel 223A from

Susquehanna, Pennsylvania, to Conklin,

New York, and modifies Station WKGB–

FM’s license accordingly. We also

reallot Channel 263A from Conklin,

New York, to Susquehanna,

Pennsylvania, and modify Station

WCDW(FM)’s license accordingly. See

64 FR 51284, September 22, 1999.

Channel 223A can be reallotted to

Conklin in compliance with the

Commission’s minimum distance

separation requirements at Station

WKGB–FM’s requested site. The

coordinates for Channel 223A at

Conklin are 42–06–53 North Latitude

and 75–51–16 West Longitude.

Additionally, Channel 263A can be

reallotted to Susquehanna in

compliance with the Commission’s

minimum distance separation

requirements at Station WCDW(FM)’s

requested site. The coordinates for

Channel 263A at Susquehanna are 42–

02–30 North Latitude and 75–41–30

West Longitude.

DATES: Effective November 13, 2000.

FOR FURTHER INFORMATION CONTACT:

Sharon P. McDonald, Mass Media

Bureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Commission’s Report

and Order, MM Docket No. 99–278,

adopted September 20, 2000, and

released September 29, 2000. The full

text of this Commission decision is

available for inspection and copying

during normal business hours in the

FCC Reference Information Center

(Room CY–A257), 445 12th Street, SW.,

Washington, DC. The complete text of

this decision may also be purchased

from the Commission’s copy

contractors, International Transcription

Service, Inc., (202) 857–3800, 1231 20th

Street, NW., Washington, DC 20036.

List of Subjects in 47 CFR Part 73

Radio broadcasting.

Part 73 of title 47 of the Code of

Federal Regulations is amended as

follows:

Part 73 [AMENDED]

1. The authority citation for part 73

continues to read as follows:

Authority: 47 U.S.C. 54, 303, 334, 336.

§ 73.202 [Amended]

2. Section 73.202(b), the Table of FM

Allotments under New York, is

amended by adding Channel 223A and

removing Channel 263A at Conklin.

3. Section 73.202(b), the Table of FM

Allotments under Pennsylvania, is

amended by adding Channel 263A and

removing Channel 223A at

Susquehanna.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and Rules

Division, Mass Media Bureau.

[FR Doc. 00–26714 Filed 10–17–00; 8:45 am]

BILLING CODE 6712–01–P

DEPARTMENT OF ENERGY

48 CFR Parts 931 and 970

RIN 1991–AB36

Acquisition Regulations; Costs

Associated With Whistleblower

Actions

AGENCY: Department of Energy.

ACTION: Final rule.

SUMMARY: The Department of Energy

(Department) is amending its

acquisition regulations to address

contractor defense, settlement and

award costs associated with contractor

employee whistleblower actions. This

action implements a cost principle

approach in the Department of Energy

Acquisition Regulation (DEAR) which

will apply to the Department’s cost

reimbursement contractors and

subcontractors with a contract amount

exceeding $5,000,000.

EFFECTIVE DATE: This final rule is

effective November 17, 2000.

FOR FURTHER INFORMATION CONTACT:

Terrence D. Sheppard, (202) 586–8193;

e-mail terry.sheppard@hq.doe.gov.

SUPPLEMENTARY INFORMATION:

I. Background.

II. Disposition of Comments

III. Procedural Requirements.

A. Review Under Executive Order 12866.

B. Review Under Executive Order 12988.

C. Review Under the Regulatory Flexibility

Act.

D. Review Under the Paperwork Reduction

Act.

E. Review Under the National

Environmental Policy Act.

F. Review Under Executive Order 13132.

G. Review Under the Unfunded Mandates

Reform Act of 1995.

H. Congressional Notification.

I. Background

The purpose of this final rule is to

establish the Department’s policy on the

reimbursement of contractor settlement,

award and defense costs associated with

contractor employee whistleblower

actions. This policy will cover the

Department’s cost reimbursement

contractors and subcontractors with a

contract amount in excess of $5,000,000.

Costs associated with whistleblower

actions filed by an employee in Federal

and state courts, and with Federal

agencies under 29 CFR Part 24, 48 CFR

Subpart 3.9, 10 CFR Part 708 or 42

U.S.C. 7239 will be subject to the

reimbursement provisions of the new

regulation.

This action grows out of rulemaking

notices published on January 5, 1998

(63 FR 386) and March 24, 1999 (64 FR

14206). The first notice published for

comment a proposed rule to create a

whistleblower costs clause. The second

notice reopened the comment period for

an alternate proposal using a cost

principle approach.

The alternate proposal was the result

of a number of factors, including: (1)

The Department’s experience in a few

high profile whistleblower actions; (2)

further review of the practices of the rest

of the Federal Government with this

cost category; (3) a Department effort to

reduce the number of cost clauses in

DEAR Part 970 in favor of a cost

principle approach (notice of proposed

rule published June 14, 2000 (65 FR

37335)); and (4) the comments received

in response to the initial proposed rule.

For the reasons stated below, the

Department has now concluded that the

cost principle approach, which provides

contracting officers with greater

flexibility in making determinations on

a case-by-case basis, is the best

approach for the circumstances facing

the Department and its facility

management contractors. However, the

Department has modified its initial cost

principle proposal in response to some

of the comments received concerning

that proposal.

II. Disposition of Comments

Two sets of comments were received

in response to the January 5, 1998,

notice of proposed rulemaking and five

sets of comments were received in

response to the March 24, 1999, notice

to reopen the comment period. Except