Federal Register / Vol. 87, No. 62 / Thursday, March 31, 2022 / Rules and Regulations 18697 

revision of the Code of Federal 

Regulations. 

■ In Title 26 of the Code of Federal 

Regulations, Part 1 (§§ 1.641 to 1.850), 

revised as of April 1, 2021, in section 

1.642(h)–2, revise paragraphs (a), (b), 

and (c) to read as follows: 

§ 1.642(h)–2 Excess deductions on 

termination of an estate or trust. 

(a) Excess deductions—(1) In general. 

If, on the termination of an estate or 

trust, the estate or trust has for its last 

taxable year deductions (other than the 

deductions allowed under section 

642(b) (relating to the personal 

exemption) or section 642(c) (relating to 

charitable contributions)) in excess of 

gross income, the excess deductions as 

determined under paragraph (b) of this 

section are allowed under section 

642(h)(2) as items of deduction to the 

beneficiaries succeeding to the property 

of the estate or trust. 

(2) Treatment by beneficiary. A 

beneficiary may claim all or part of the 

amount of the deductions provided for 

in paragraph (a) of this section, as 

determined after application of 

paragraph (b) of this section, before, 

after, or together with the same 

character of deductions separately 

allowable to the beneficiary under the 

Internal Revenue Code for the 

beneficiary’s taxable year during which 

the estate or trust terminated as 

provided in paragraph (c) of this 

section. 

(b) Character and amount of excess 

deductions—(1) Character. The 

character and amount of the excess 

deductions on termination of an estate 

or trust will be determined as provided 

in this paragraph (b). Each deduction 

comprising the excess deductions under 

section 642(h)(2) retains, in the hands of 

the beneficiary, its character 

(specifically, as allowable in arriving at 

adjusted gross income, as a nonmiscellaneous itemized deduction, or as 

a miscellaneous itemized deduction) 

while in the estate or trust. An item of 

deduction succeeded to by a beneficiary 

remains subject to any additional 

applicable limitation under the Internal 

Revenue Code and must be separately 

stated if it could be so limited, as 

provided in the instructions to Form 

1041, U.S. Income Tax Return for 

Estates and Trusts, and the Schedule K– 

1 (Form 1041), Beneficiary’s Share of 

Income, Deductions, Credit, etc., or 

successor forms. 

(2) Amount. The amount of the excess 

deductions in the final year is 

determined as follows: 

(i) Each deduction directly 

attributable to a class of income is 

allocated in accordance with the 

provisions in § 1.652(b)–(a); 

(ii) To the extent of any remaining 

income after application of paragraph 

(b)(2)(i) of this section, deductions are 

allocated in accordance with the 

provisions in § 1.652(b)–3(b) and (d); 

and 

(iii) Deductions remaining after the 

application of paragraph (b)(2)(i) and (ii) 

of this section comprise the excess 

deductions on termination of the estate 

or trust. These deductions are allocated 

to the beneficiaries succeeding to the 

property of the estate of or trust in 

accordance with § 1.642(h)–4. 

(c) Year of termination—(1) In 

general. The deductions provided for in 

paragraph (a) of this section are 

allowable only in the taxable year of the 

beneficiary in which or with which the 

estate or trust terminates, whether the 

year of termination of the estate or trust 

is of normal duration or is a short 

taxable year. 

(2) Example. Assume that a trust 

distributes all its assets to B and 

terminates on December 31, Year X. As 

of that date, it has excess deductions of 

$18,000, all characterized as allowable 

in arriving at adjusted gross income 

under section 67(e). B, who reports on 

the calendar year basis, could claim the 

$18,000 as a deduction allowable in 

arriving at B’s adjusted gross income for 

Year X. However, if the deduction 

(when added to other allowable 

deductions that B claims for the year) 

exceeds B’s gross income, the excess 

may not be carried over to any year 

subsequent to Year X. 

* * * * * 

[FR Doc. 2022–06880 Filed 3–30–22; 8:45 am] 

BILLING CODE 0099–10–D 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

Income Taxes 

CFR Correction 

This rule is being published by the 

Office of the Federal Register to correct 

an editorial or technical error that 

appeared in the most recent annual 

revision of the Code of Federal 

Regulations. 

In Title 26 of the Code of Federal 

Regulations, Part 1 (§§ 1.641 to 1.850), 

revised as of April 1, 2021, make the 

following corrections: 

■ 1. In section 1.817A–1, add paragraph 

(c) to read as follows: 

§ 1.817A–1 Certain modified guaranteed 

contracts. 

* * * * * 

(c) Applicability dates. Paragraph (b) 

of this section applies to taxable years 

beginning after October 13, 2020. 

However, a taxpayer may choose to 

apply the rules of paragraph (b) of this 

section for a taxable year beginning after 

December 31, 2017, the effective date of 

the revision of section 807 by Public 

Law 115–97, and on or before October 

13, 2020, provided the taxpayer 

consistently applies the rules of 

paragraph (b) of this section to that 

taxable year and all subsequent taxable 

years. See section 7805(b)(7). For 

taxable years beginning on or before 

October 13, 2020, see paragraph (b) of 

this section as contained in 26 CFR part 

1 revised as of April 1, 2020. 

* * * * * 

1.818–2 [Amended] 

■ 2. In section 1.818–2, remove 

paragraph (c). 

[FR Doc. 2022–06881 Filed 3–30–22; 8:45 am] 

BILLING CODE 0099–10–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2022–0234] 

RIN 1625–AA87 

Security Zone; San Diego Bay, San 

Diego, CA 

AGENCY: Coast Guard, Department of 

Homeland Security (DHS). 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary security zone 

for all navigable waters within a 200- 

yard radius of the U.S. Coast Guard 

Cutter (USCGC) KIMBALL while 

berthed at 10th Avenue Marine 

Terminal in San Diego, CA. The security 

zone is needed to protect the military 

vessel, personnel in and around the 

military vessel, navigable waterways, 

and waterfront facilities. Entry of 

vessels or persons into this zone is 

prohibited unless specifically 

authorized by the Captain of the Port 

San Diego. 

DATES: This rule is effective from 7 a.m. 

until 8 p.m. on March 31, 2022. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2022– 


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18698 Federal Register / Vol. 87, No. 62 / Thursday, March 31, 2022 / Rules and Regulations 

0234 in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rule. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Lieutenant Commander John 

Santorum, Waterways Management, 

U.S. Coast Guard Sector San Diego, CA; 

telephone 619–278–7656, email 

MarineEventsSD@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

The Coast Guard is issuing this 

temporary rule without prior notice and 

opportunity to comment pursuant to 

authority under section 4(a) of the 

Administrative Procedure Act (APA) (5 

U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because it 

would be impracticable based on the 

unpredictable nature of vessel 

operations and the fact that details of 

the port call were not finalized until 

March 24, 2022. This security zone is 

required to protect the military vessel, 

personnel in and around the military 

vessel, navigable waterways, and 

waterfront facilities while the vessel is 

docked at the 10th Avenue Marine 

Terminal. It is impracticable to publish 

an NPRM because we must establish 

this security zone by March 31, 2022. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 

making this rule effective less than 30 

days after publication in the Federal 

Register. Delaying the effective date of 

this rule would be impracticable 

because the security zone is needed on 

March 31, 2022, to provide for the 

security of the military vessel, personnel 

in and around the military vessel, 

navigable waterways, and waterfront 

facilities while the vessel is docked at 

the 10th Avenue Marine Terminal. 

III. Legal Authority and Need for Rule 

The Coast Guard is issuing this rule 

under authority in 46 U.S.C. 70034. The 

Captain of the Port Sector San Diego 

(COTP) has determined that the 

presence of the military vessel at this 

location presents a potential target for 

terrorist attack, sabotage, or other 

subversive acts, accidents, or other 

causes of similar nature. This rule is 

needed to protect the military vessel, 

personnel in and around the military 

vessel, navigable waterways, and 

waterfront facilities while the vessel is 

docked at the 10th Avenue Marine 

Terminal. 

IV. Discussion of the Rule 

This rule establishes a security zone 

from 7 a.m. until 8 p.m. on March 31, 

2022. The security zone will cover all 

navigable waters within a 200-yard 

radius around the USCGC KIMBALL 

while berthed at 10th Avenue Marine 

Terminal in San Diego, CA. The 

duration of the zone is intended to 

protect the military vessel, personnel in 

and around the military vessel, 

navigable waterways, and waterfront 

facilities while the vessel is docked at 

the 10th Avenue Marine Terminal. No 

vessel or person will be permitted to 

enter the security zone without 

obtaining permission from the COTP or 

a designated representative. 

V. Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

Executive orders related to rulemaking. 

Below we summarize our analyses 

based on a number of these statutes and 

Executive orders, and we discuss First 

Amendment rights of protestors. 

A. Regulatory Planning and Review 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits. 

This rule has not been designated a 

‘‘significant regulatory action,’’ under 

Executive Order 12866. Accordingly, 

this rule has not been reviewed by the 

Office of Management and Budget 

(OMB). 

This regulatory action determination 

is based on the size, location, and 

limited duration of the security zone. 

This zone impacts a small designated 

area of the San Diego Bay for a very 

limited period. Furthermore, vessel 

traffic can safely transit around the 

security zone. 

B. Impact on Small Entities 

The Regulatory Flexibility Act of 

1980, 5 U.S.C. 601–612, as amended, 

requires Federal agencies to consider 

the potential impact of regulations on 

small entities during rulemaking. The 

term ‘‘small entities’’ comprises small 

businesses, not-for-profit organizations 

that are independently owned and 

operated and are not dominant in their 

fields, and governmental jurisdictions 

with populations of less than 50,000. 

The Coast Guard certifies under 5 U.S.C. 

605(b) that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

While some owners or operators of 

vessels intending to transit the security 

zone may be small entities, for the 

reasons stated in section V.A. above, 

this rule will not have a significant 

economic impact on any vessel owner 

or operator. 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121), 

we want to assist small entities in 

understanding this rule. If the rule 

would affect your small business, 

organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance, please call or email the 

person listed in the FOR FURTHER

INFORMATION CONTACT section. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 

1–888–REG–FAIR (1–888–734–3247). 

The Coast Guard will not retaliate 

against small entities that question or 

complain about this rule or any policy 

or action of the Coast Guard. 

C. Collection of Information 

This rule will not call for a new 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520). 

D. Federalism and Indian Tribal 

Governments 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect 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. We have 

analyzed this rule under that order and 

have determined that it is consistent 

with the fundamental federalism 


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Federal Register / Vol. 87, No. 62 / Thursday, March 31, 2022 / Rules and Regulations 18699 

principles and preemption requirements 

described in Executive Order 13132. 

Also, this rule does not have tribal 

implications under Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, 

because it does not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

E. Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 (adjusted for inflation) or 

more in any one year. Though this rule 

will not result in such an expenditure, 

we do discuss the effects of this rule 

elsewhere in this preamble. 

F. Environment 

We have analyzed this rule under 

Department of Homeland Security 

Directive 023–01, Rev. 1, associated 

implementing instructions, and 

Environmental Planning COMDTINST 

5090.1 (series), which guide the Coast 

Guard in complying with the National 

Environmental Policy Act of 1969 (42 

U.S.C. 4321–4370f), and have 

determined that this action is one of a 

category of actions that do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule involves 

establishment of a security zone lasting 

only 13 hours on the navigable waters 

of San Diego Bay. It is categorically 

excluded from further review under 

paragraph L60(a) of Appendix A, Table 

1 of DHS Instruction Manual 023–01– 

001–01, Rev. 1. A Record of 

Environmental Consideration 

supporting this determination is 

available in the docket. For instructions 

on locating the docket, see the 

ADDRESSES section of this preamble. 

G. Protest Activities 

The Coast Guard respects the First 

Amendment rights of protesters. 

Protesters are asked to call or email the 

person listed in the FOR FURTHER

INFORMATION CONTACT section to 

coordinate protest activities so that your 

message can be received without 

jeopardizing the safety or security of 

people, places, or vessels. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, 

Waterways. 

For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 46 U.S.C. 70034, 70051; 33 CFR 

1.05–1, 6.04–1, 6.04–6, and 160.5; 

Department of Homeland Security Delegation 

No. 00170.1, Revision No. 01.2. 

■ 2. Add § 165.T11–091 to read as 

follows: 

§ 165.T11–091 Security Zone; San Diego 

Bay; San Diego, CA. 

(a) Location. The following area is a 

security zone: All waters of San Diego 

Bay, from surface to bottom, within a 

200-yard radius of the U.S. Coast Guard 

Cutter KIMBALL while berthed at 10th 

Avenue Marine Terminal in San Diego, 

CA. 

(b) Definitions. As used in this 

section, designated representative 

means a Coast Guard Patrol 

Commander, including a Coast Guard 

coxswain, petty officer, or other officer 

operating a Coast Guard vessel and a 

Federal, State, and local officer 

designated by or assisting the Captain of 

the Port Sector San Diego (COTP) in the 

enforcement of the security zone. 

(c) Regulations. (1) Under the general 

security zone regulations in subpart D of 

this part, you may not enter the security 

zone described in paragraph (a) of this 

section unless authorized by the COTP 

or the COTP’s designated representative. 

(2) To seek permission to enter, 

contact the COTP or the COTP’s 

representative by VHF Channel 16. 

Those in the security zone must comply 

with all lawful orders or directions 

given to them by the COTP or the 

COTP’s designated representative. 

(d) Enforcement period. This section 

will be enforced from 7 a.m. until 8 p.m. 

on March 31, 2022. 

Dated: March 25, 2022. 

T.J. Barelli, 

Captain, U.S. Coast Guard, Captain of the 

Port Sector San Diego. 

[FR Doc. 2022–06813 Filed 3–30–22; 8:45 am] 

BILLING CODE 9110–04–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R03–OAR–2020–0522; FRL–9666–02– 

R3] 

Air Plan Approval; Delaware; 

Amendments To Control of Volatile 

Organic Compounds Mobile 

Equipment Repair and Refinishing 

Rule Regulation 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is approving a state 

implementation plan (SIP) revision 

submitted by the Delaware Department 

of Natural Resources and Environmental 

Control (DNREC). This SIP revision 

consists of the 2010 amendments to the 

State of Delaware’s Mobile Equipment 

Repair and Refinishing (MERR) 

regulations to incorporate the Ozone 

Transport Commission’s (OTC) 2009 

Motor Vehicle and Mobile Equipment 

Non-Assembly Line Coating Operations 

regulations (MVMERR) model rule. The 

MVMERR rule establishes updated 

volatile organic compounds (VOC) 

content limits for coating and cleaning 

solvents used in vehicle refinishing and 

standards for coating application, work 

practices, monitoring, and 

recordkeeping. EPA is approving these 

revisions to the Delaware SIP in 

accordance with the requirements of the 

Clean Air Act (CAA). 

DATES: This final rule is effective on 

May 2, 2022. 

ADDRESSES: EPA has established a 

docket for this action under Docket ID 

Number EPA–R03–OAR–2020–0522. All 

documents in the docket are listed on 

the https://www.regulations.gov 

website. Although listed in the index, 

some information is not publicly 

available, e.g., confidential business 

information (CBI) or other information 

whose disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available through https://

www.regulations.gov, or please contact 

the person identified in the FOR FURTHER

INFORMATION CONTACT section for 

additional availability information. 

FOR FURTHER INFORMATION CONTACT: 

Sean Silverman, Planning & 

Implementation Branch (3AD30), Air & 

Radiation Division, U.S. Environmental 

Protection Agency, Region III, 1650 


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