This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

13199 

Vol. 80, No. 49 

Friday, March 13, 2015 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Rural Business-Cooperative Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Parts 1951 and 1956 

RIN 0570–AA88 

Rural Development Loan Servicing 

AGENCY: Rural Housing Service, Rural 

Business-Cooperative Service, Rural 

Utilities Service, and Farm Service 

Agency, USDA. 

ACTION: Direct final rule. 

SUMMARY: The Rural BusinessCooperative Service is amending its 

regulations for Debt Settlement. This 

amendment would allow the Rural 

Business Service’s (referred to as 

Agency throughout the remainder of the 

text) Administrator to use the statutory 

authority that has been delegated to 

him/her in accordance with title 

331(b)(4) of the Consolidated Farm and 

Rural Development Act (CONACT), but 

is currently not being used for all of 

RBS’s revolving loan programs, which 

include: The Intermediary Relending 

Program (IRP) loans, Rural Development 

Loan Fund (RDLF) loans, and the Rural 

Microentrepreneur Assistance Program 

(RMAP)loans. This regulation will allow 

the RBS to be consistent across all of its 

loan programs; all of RBS’s other loan 

programs have regulations in place to 

settle debt. 

This Direct Final Rule is intended to 

authorize the Agency to use its 

independent debt settlement authority 

under CONACT. Nothing in this Direct 

Final Rule is intended to affect the 

requirements of the Agency to follow 

other applicable Federal debt collection 

law such as the Debt Collection 

Improvement Act of 1996, as amended. 

Further nothing in this Direct Final Rule 

is intended to alter any requirements the 

Agency must follow when making 

collection referrals to the Department of 

Justice or the Treasury Department. 

DATES: This rule is effective May 18, 

2015. Comments on this direct final rule 

must be received on or before April 13, 

2015 to be assured of consideration. 

If RBS receives adverse comment(s) 

on all or a distinct portion of this rule, 

we will publish a timely withdrawal in 

the Federal Register informing the 

public that some of this rule or the 

entire direct final rule will not take 

effect. The rule provisions that are not 

withdrawn will become effective on the 

date set out above, notwithstanding 

adverse comments on any other 

provision, unless we determine that it 

would not be appropriate to promulgate 

those provisions. 

ADDRESSES: You may submit comments 

to this direct final rule by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Submit written comments via 

the U.S. Postal Service to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, STOP 0742, 300 7th 

Street SW., 7th Floor, Washington, DC 

20024. 

• Hand Delivery/Courier: Submit 

written comments via Federal Express 

Mail, or other courier service requiring 

a street address, to the Branch Chief, 

Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture. All written comments 

will be available for public inspection 

during regular work hours at the 300 7th 

Street SW., 7th Floor address listed 

above. 

FOR FURTHER INFORMATION CONTACT: 

Melvin Padgett, Rural Development, 

Business Programs, U.S. Department of 

Agriculture, 1400 Independence Avenue 

SW., Stop 3226, Washington, DC 20250– 

3225; email: melvin.padgett@

wdc.usda.gov; telephone: (202) 720– 

1495. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866, Classification 

This rule has been determined to be 

significant for purposes of Executive 

Order 12866 and has been reviewed by 

the Office of Management and Budget 

(OMB). The Executive Order defines a 

‘‘significant regulatory action’’ as one 

that is likely to result in a rule that may: 

(1) Have an annual effect on the 

economy of $100 million or more or 

adversely affect, in a material way, the 

economy, a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State, local, or Tribal Governments or 

communities; (2) Create a serious 

inconsistency or otherwise interfere 

with an action taken or planned by 

another agency; (3) Materially alter the 

budgetary impact of entitlements, 

grants, user fees, or loan programs or the 

rights and obligations of recipients 

thereof; or (4) Raise novel legal or policy 

issues arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in this Executive Order. 

The Agency conducted a benefit-cost 

analysis to fulfill the requirements of EO 

12866. This rule will not impose any 

new costs for the public (customers, 

applicants, borrowers, grantees, 

recipients and/or beneficiaries) of Rural 

Development’s loan programs. This 

direct final rule permits the debt 

settlement policy to be uniform and 

consistent for all programs and will 

allow the Rural Development to process 

eligible debt settlement cases in a 

prompt and efficient manner. 

Programs Affected 

The Catalog of Federal Domestic 

Assistance Program number assigned to 

the IRP is 10.767. 

Environmental Impact Statement 

This document has been reviewed in 

accordance with 7 CFR, part 1940, 

subpart G, ‘‘Environmental Program.’’ 

Rural Development has determined that 

this action does not constitute a major 

Federal action significantly affecting the 

quality of the human environment and, 

in accordance with the National 

Environmental Policy Act (NEPA) of 

1969, 42 U.S.C. 4321 et seq., an 

Environmental Impact Statement is not 

required. 

Executive Order 12372, 

Intergovernmental Consultation 

The program is subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with State and local 

officials. Consultation will be completed 

at the time of the action performed. 


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13200 Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Rules and Regulations 

Executive Order 12988, Civil Justice 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The Agency has determined 

that this rule meets the applicable 

standards provided in § 3 of the 

Executive Order. Additionally, (1) all 

State and local laws and regulations that 

are in conflict with this rule will be 

preempted; (2) no retroactive effect will 

be given to the rule; and (3) 

administrative appeal procedures, if 

any, must be exhausted before litigation 

against the Department or its agencies 

may be initiated, in accordance with the 

regulations of the National Appeals 

Division of USDA at 7 CFR part 11. 

Executive Order 13132, Federalism 

The policies contained in this rule do 

not have any substantial direct effect on 

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. Nor does this rule 

impose substantial direct compliance 

costs on State and local governments. 

Therefore, consultation with States is 

not required. 

Regulatory Flexibility Act Certification 

Under section 605(b) of the 

Regulatory Flexibility Act, 5 U.S.C. 

605(b), the Agency certifies that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. The Agency 

made this determination based on the 

fact that this regulation only impacts 

those who choose to participate in the 

program. Small entity applicants will 

not be impacted to a greater extent than 

large entity applicants. 

Unfunded Mandate Reform Act 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995) for State, 

local, and Tribal Governments or the 

private sector. Thus, this rule is not 

subject to the requirements of § s 202 

and 205 of the Unfunded Mandates 

Reform Act of 1995. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This executive order imposes 

requirements on Rural Development 

(RD) in the development of regulatory 

policies that have tribal implications or 

preempt tribal laws. RD has determined 

that this rule does not have a substantial 

direct effect on one or more Indian 

tribe(s) or on either the relationship or 

the distribution of powers and 

responsibilities between the Federal 

Government and Indian tribes. Thus, 

this rule is not subject to the 

requirements of Executive Order 13175. 

If a tribe determines that this rule has 

implications of which RD is not aware 

and would like to engage with RD on 

this rule, please contact RD’s Native 

American Coordinator at (720) 544– 

2911 or AIAN@wdc.usda.gov. 

Paperwork Reduction Act 

This rule contains no new reporting 

or recordkeeping requirements that 

would require approval under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. Chapter 35). 

E-Government Act Compliance 

Rural Development is committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies, to 

provide increased opportunities for 

citizens to access Government 

information and services electronically. 

I. Background 

The process of debt settlement is a 

time consuming process. Before a 

borrower in default can settle their 

indebtedness to the Agency, current 

regulations require four levels of review: 

The local/area office, the State Office, 

the National Office, and finally a United 

States Department of Justice (DOJ) 

review. This review process results in 

loans that are eligible for debt 

settlement, to continue to sit on the 

books much longer than necessary, 

incurring interest, and decreasing the 

likelihood that a borrower will exist to 

collect recoveries once the loan is 

finally sent to the Department of the 

Treasury. 

The Agency has shown, through its 

use of the settlement authority in 7 

U.S.C. 1981(b)(4) in its other loan 

programs, that it can judiciously and 

reasonably administer that authority on 

its own without the need for additional 

levels of review. 

By revising its regulations governing 

the review process for debt settlement, 

the Agency will be able to process debt 

settlement claims in a more uniform, 

prompt, and efficient manner. 

II. Discussion of Changes 

The Agency is proposing to modify 

several paragraphs in 7 CFR part 1951, 

subpart R and in 7 CFR part 1956, 

subpart C in order to allow the 

aforementioned loans to be settled 

under Agency policies and procedures 

for debt settlement as found in 7 CFR 

part 1956, subpart C, and to remove the 

requirement to send settlements to DOJ, 

allowing us to use the Federal Claims 

Collection Standards (31 CFR parts 900– 

904). This will permit the Agency to 

quickly and efficiently dispose of debt 

settlements. The specific changes are 

summarized below: 

1. The Agency is proposing to modify 

§ 1951.851(a) by adding a sentence to 

indicate that all debt settlement cases 

submitted under 7 CFR part 1951, 

subpart R, will be handled in 

accordance with 7 CFR part 1956, 

subpart C. The Agency is adding 

reference to the RMAP in the first 

sentence to indicate its inclusion. 

2. The Agency is proposing to revise 

§ 1951.894 to state that the debt 

settlement of all claims, which would 

now include RMAP, would be handled 

in accordance with 7 CFR 1956, subpart 

C. Specifically, the Agency is replacing 

the reference to Federal Claims 

Collection Standards, 4 CFR parts 101– 

105, with reference to ‘‘Subpart C of Part 

1956 of this Chapter.’’ 

3. The Agency is proposing to revise 

§§ 1956.101 so that debt settlement of 

RDLF loans, IRP loans and RMAP loans, 

will be under 7 CFR part 1956, subpart 

C (and will be handled by the Agency’s 

Administrator) rather than under the 

Federal Claims Collection Standards as 

currently provided in the regulation. 

4. The Agency is proposing to revise 

the introductory text to § 1956.147 to 

remove reference to RDLF loans and IRP 

loans. This is a conforming change that 

removes these loans from complying 

with the debt settlement provisions 

under the Federal Claims Collection 

Act. 

List of Subjects 

7 CFR Part 1951 

Loan programs—agriculture, Loan 

programs—housing and community 

development. 

7 CFR Part 1956 

Loan programs—agriculture, Loan 

programs—housing and community 

development. 

For the reasons set forth in the 

preamble, chapter XVIII, title 7, of the 

Code of Federal Regulations is amended 

as follows: 

CHAPTER XVIII—RURAL HOUSING 

SERVICE, RURAL BUSINESSCOOPERATIVE SERVICE, RURAL 

UTILITIES SERVICE, AND FARM 

SERVICE AGENCY, DEPARTMENT OF 

AGRICULTURE 

PART 1951—SERVICING AND 

COLLECTIONS 

■ 1. The authority citation for part 1951 

is revised to read as follows: 

Authority: 5 U.S.C. 301; and 7 U.S.C. 

1989. 


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Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Rules and Regulations 13201 

Subpart R—Rural Development Loan 

Servicing 

■ 2. Paragraph (a) of § 1951.851 is 

revised to read as follows: 

§ 1951.851 Introduction. 

(a) This subpart contains regulations 

for servicing or liquidating loans or 

other assistance made by the Rural 

Business-Cooperative Service or its 

successor agency under the IRP and the 

RMAP. All debt settlement cases under 

this subpart will be settled in 

accordance with the debt settlement 

provisions set forth in 7 CFR part 1956, 

subpart C. The provisions of this 

subpart supersede conflicting provisions 

of any other subpart. 

* * * * * 

■ 3. Section 1951.894 is revised to read 

as follows: 

§ 1951.894 Debt settlement. 

Debt settlement of all claims will be 

handled in accordance with subpart C of 

part 1956 of this chapter. 

PART 1956—DEBT SETTLEMENT 

■ 4. The authority citation for part 1956 

is revised to read as follows: 

Authority: 5 U.S.C. 301; and 7 U.S.C. 1989. 

Subpart C—Debt Settlement— 

Community and Business Programs 

■ 5. Section 1956.101 is revised to read 

as follows: 

§ 1956.101 Purpose. 

This subpart delegates authority and 

prescribes policies and procedures for 

debt settlement of Community Facility 

loans; Association Recreation loans; 

Rural Renewal loans; direct Business 

and Industry loans; Rural Development 

Loan Fund loans; Intermediary 

Relending Program loans; and the Rural 

Microentrepreneur Assistance Program 

(RMAP) loans and repayable portions of 

RMAP grants; and Shift-in-land-use 

loans. Settlement of Economic 

Opportunity Cooperative loans, Claims 

Against Third Party Converters, Nonprogram loans, Rural Business 

Enterprise/Television Demonstration 

Grants, Nonprofit National Corporations 

Loans and Grants, and 601 Energy 

Impact Assistance Grants, is not 

authorized under independent statutory 

authority, and settlement under these 

programs is handled pursuant to the 

Federal Claims Collection Joint 

Standards, 31 CFR parts 900 through 

904, inclusive. In addition, this subpart 

does not apply to Water and Waste 

Programs of the Rural Utilities Service, 

Watershed loans, and Resource 

Conservation and Development loans, 

which are serviced under part 1782 of 

this title. 

■ 6. The section heading and 

introductory text to § 1956.147 are 

revised to read as follows: 

§ 1956.147 Debt settlement under the 

Federal Claims Collection Standard. 

Unless otherwise provided in this 

title, loans and claims will be settled in 

accordance with the Federal Claims 

Collection Standards at 31 CFR parts 

900 through 904, inclusive. 

* * * * * 

Dated: February 27, 2015. 

Lisa Mensah, 

Under Secretary. 

Dated: February 26, 2015. 

Michael Scuse, 

Under Secretary, Farm and Foreign 

Agricultural Services. 

[FR Doc. 2015–05435 Filed 3–12–15; 8:45 am] 

BILLING CODE 3410–XY–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2014–0467; Airspace 

Docket No. 14–ANM–7] 

Establishment of Class E Airspace; 

Spokane, WA 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This action establishes Class 

E airspace at Spokane, WA, to facilitate 

vectoring of Instrument Flight Rules 

(IFR) aircraft under control of Seattle 

Air Route Traffic Control Center 

(ARTCC). This action enhances the 

safety and management of IFR 

operations within the National Airspace 

System (NAS). 

DATES: Effective 0901 UTC, April 30, 

2015. The Director of the Federal 

Register approves this incorporation by 

reference action under title 1, Code of 

Federal Regulations, part 51, subject to 

the annual revision of FAA Order 

7400.9 and publication of conforming 

amendments. 

ADDRESSES: FAA Order 7400.9Y, 

Airspace Designations and Reporting 

Points, and subsequent amendments can 

be viewed on line at http://

www.faa.gov/airtraffic/publications/. 

The Order is also available for 

inspection at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, 

or go to http://www.archives.gov/

federal_register/code_of_federalregulations/ibr_locations.html. 

FAA Order 7400.9, Airspace 

Designations and Reporting Points, is 

published yearly and effective on 

September 15. For further information, 

you can contact the Airspace Policy and 

ATC Regulations Group, Federal 

Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 29591; telephone: 202– 

267–8783. 

FOR FURTHER INFORMATION CONTACT: 

Steve Haga, Federal Aviation 

Administration, Operations Support 

Group, Western Service Center, 1601 

Lind Avenue SW., Renton, WA 98057; 

telephone (425) 203–4563. 

SUPPLEMENTARY INFORMATION: 

History 

On November 19, 2014 the FAA 

published in the Federal Register a 

notice of proposed rulemaking (NPRM) 

to establish Class E en route domestic 

airspace at Spokane, WA (79 FR 68809). 

Interested parties were invited to 

participate in this rulemaking effort by 

submitting written comments on the 

proposal to the FAA. One comment was 

received from the National Business 

Aviation Association in support of the 

proposal. 

Class E airspace designations are 

published in paragraph 6006, of FAA 

Order 7400.9Y, dated August 6, 2014, 

and effective September 15, 2014, which 

is incorporated by reference in 14 CFR 

71.1. The Class E airspace designation 

listed in this document will be 

published subsequently in the Order. 

Availability and Summary of 

Documents for Incorporation by 

Reference 

This document amends FAA Order 

7400.9Y, Airspace Designations and 

Reporting Points, dated August 6, 2014, 

and effective September 15, 2014. FAA 

Order 7400.9Y is publicly available as 

listed in the ADDRESSES section of this 

final rule. FAA Order 7400.9Y lists 

Class A, B, C, D, and E airspace areas, 

air traffic service routes, and reporting 

points. 

The Rule 

This amendment to Title 14, Code of 

Federal Regulations (14 CFR) part 71 

establishes Class E en route domestic 

airspace extending upward from 1,200 

feet above the surface at Spokane, WA. 

By this action, aircraft are contained 

while in IFR conditions under control of 

Seattle ARTCC by vectoring aircraft 

from en route airspace to terminal areas. 

This action enhances the safety and 


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