2892 Federal Register / Vol. 63, No. 12 / Tuesday, January 20, 1998 / Rules and Regulations

frequent and routine amendments are

necessary to keep them operationally

current. It, therefore—(1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 11034; February 26, 1979); and (3)

does not warrant preparation of a

regulatory evaluation as the anticipated

impact is so minimal. For the same

reason, the FAA certifies that this

amendment will not have a significant

economic impact on a substantial

number of small entities under the

criteria of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 97

Air traffic control, Airports,

Navigation (air).

Issued in Washington, DC on December 26,

1997.

Richard O. Gordon,

Acting Director, Flight Standards Service.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me, part 97 of the

Federal Aviation Regulations (14 CFR

part 97) is amended by establishing,

amending, suspending, or revoking

Standard Instrument Approach

Procedures, effective at 0901 UTC on

the dates specified, as follows:

PART 97—STANDARD INSTRUMENT

APPROACH PROCEDURES

1. The authority citation for part 97 is

revised to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113,

40120, 44701; and 14 CFR 11.49(b)(2).

2. Part 97 is amended to read as

follows:

§§ 97.23, 97.25, 97.27, 97.29, 97.31, 97.33,

97.35 [Amended]

By amending; § 97.23 VOR, VOR/

DME, VOR or TACAN, and VOR/DME

or TACAN; § 97.25 LOC, LOC/DME,

LDA, LDA/DME, SDF, SDF/DME;

§ 97.27 NDB, NDB/DME; § 97.29 ILS,

ILS/DME, ISMLS, MLS, MLS/DME,

MLS/RNAV; § 97.31 RADAR SIAPs;

§ 97.33 RNAV SIAPs; and § 97.35

COPTER SIAPs; identified as follows:

* * * Effective January 29, 1998

Plymouth, MA, Plymouth Muni, NDB RWY

6, Amdt 4

Gettysburg, SD, Gettysburg Muni, GPS RWY

31, Orig

Galeton, PA, Cherry Springs, VOR–A, Amdt

6

Suffolk, VA, Suffolk Muni, LOC RWY 4,

Amdt 1

Suffolk, VA, Suffolk Muni, NDB RWY 4,

Amdt 1

* * * Effective February 26, 1998

Cortez, CO, Cortez, Muni, GPS RWY 3, Orig

Keokuk, IA, Keokuk Muni, LOC/DME RWY

26, Orig

Moose Lake, MN, Moose Lake Carlton

County, NDB or GPS RWY 4, Amdt 1

Moose Lake, MN, Mose Lake Carlton County,

GPS RWY 4, Orig

Ogallala, NE, Searle Field, GPS RWY 26, Orig

Butler, PA, Butler County/K W Scholter

Field, ILS RWY 8, Amdt 5

Millington, TN, Millington Muni, ILS RWY

22, Orig

Dallas, TX, Dallas Love Field, RADAR–1,

Amdt 26, Cancelled

Rutland, VT, Rutland State, LOC/DME 1

RWY 19, Amdt 1

South Boston, VA, William M. Tuck, VOR

OR GPS–A, Amdt 7

Chetek, WI, Chetek Muni-Southworth, GPS

RWY 35, Orig

[FR Doc. 98–869 Filed 1–16–98; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8758]

RIN 1545–AU28

Nuclear Decommissioning Funds;

Revised Schedules of Ruling Amounts

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to requests for

revised schedules of ruling amounts for

nuclear decommissioning reserve funds.

The regulations amend existing

regulations to ease the burden on

affected taxpayers by permitting electing

taxpayers with qualifying interests in

nuclear power plants to adjust their

ruling amounts under a formula or

method rather than by filing a request

for a revised schedule of ruling

amounts.

DATES: The final regulations are

effective January 20, 1998.

FOR FURTHER INFORMATION CONTACT:

Peter Friedman, (202) 622–3110 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in these final regulations has

been reviewed and approved by the

Office of Management and Budget in

accordance with the Paperwork

Reduction Act (44 U.S.C. 3507) under

the control number 1545–1511.

Responses to this collection of

information are voluntary.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The estimated average annual burden

per recordkeeper is 5 hours.

Comments concerning the accuracy of

this burden estimate and suggestions for

reducing this burden should be sent to

the Internal Revenue Service, Attn: IRS

Reports Clearance Officer, T:FP,

Washington, DC 20024, and to the

Office of Management and Budget, Attn:

Desk Officer for the Department of the

Treasury, Office of Information and

Regulatory Affairs, Washington, DC

20503.

Books or records relating to a

collection of information must be

retained as long as their contents may

become material in the administration

of any internal revenue law. Generally,

tax returns and return information are

confidential, as required by 26 U.S.C.

6103.

Background

This document contains final

regulations under section 468A of the

Internal Revenue Code. Section 468A

was added to the Internal Revenue Code

by section 91(c) of the Tax Reform Act

of 1984 (Pub. L. 98–369). Significant

amendments were made to section 468A

by section 1917 of the Energy Policy Act

of 1992 (Pub. L. 102–486).

Section 468A(a) allows an electing

taxpayer to deduct the amount of

payments made by the taxpayer to a

nuclear decommissioning reserve fund.

Section 468A(b) limits the amount of

these payments for any taxable year to

the lesser of the ruling amount or the

amount of decommissioning costs

included in the taxpayer’s cost of

service for ratemaking purposes for that

taxable year.

Section 468A(d) provides that no

deduction shall be allowed unless the

taxpayer requests, and receives, a

schedule of ruling amounts from the

Secretary. A ruling amount is, with

respect to any taxable year, the amount

determined by the Secretary as

necessary to (1) fund that portion of the

nuclear decommissioning costs of the

taxpayer with respect to the nuclear

power plant which bears the same ratio

to the total nuclear decommissioning

costs with respect to the nuclear power

plant as the period for which the

nuclear decommissioning fund is in

effect bears to the estimated useful life

of such nuclear power plant; and (2)

prevent any excessive funding of such

costs or the funding of such costs at a

rate more rapid than level funding,

taking into account such discount rates

as the Secretary deems appropriate.

Section 468A(d)(3) provides that the
Federal Register / Vol. 63, No. 12 / Tuesday, January 20, 1998 / Rules and Regulations 2893

Secretary shall, at least once during the

useful life of the nuclear power plant (or

more frequently, upon the request of the

taxpayer), review and, if necessary,

revise the schedule of ruling amounts.

Section 1.468A–3 sets forth the rules

relating to the determination of ruling

amounts. The regulations permit the use

of a formula or method for determining

a schedule of ruling amounts (in lieu of

a schedule of ruling amounts specifying

a dollar amount for each taxable year),

but only if the public utility commission

establishing or approving the amount of

decommissioning costs to be included

in cost of service for ratemaking does

not estimate the cost of

decommissioning in future dollars.

The regulations contain provisions for

the review and revision of schedules of

ruling amounts and set forth

circumstances under which a taxpayer

must request a revision to its schedule

of ruling amounts. In general, a

schedule of ruling amounts must be

reviewed at 10 year intervals. If the

schedule is determined under a formula

or method, however, the period between

reviews may not exceed 5 years.

The regulations provide that a

taxpayer may request an elective review

of its schedule of ruling amounts. A

taxpayer seeking to maximize its

deductions under section 468A

generally needs to request an elective

review of its schedule of ruling amounts

each time a public utility commission

changes previously established amounts

of decommissioning costs. A notice of

proposed rulemaking (REG–209828–96)

relating to these rules was published in

the Federal Register on December 23,

1996 (61 FR 67510). The notice

proposes to amend § 1.468A–3(a)(4) by

eliminating the restriction on the use of

a formula or method for determining a

schedule of ruling amounts and to

revise the mandatory review

requirements.

Written comments were received in

response to the notice of proposed

rulemaking, and a public hearing was

held on May 13, 1997. After considering

the written comments and the

statements made at the public hearing,

the proposed rules are adopted as

modified by this Treasury Decision.

Explanation of Provisions

The final regulations provide that a

taxpayer may request approval of a

formula or method for determining a

schedule of ruling amounts (rather than

a schedule specifying a dollar amount

for each taxable year) that is consistent

with the principles and provisions of

the rules relating to the determination of

ruling amounts.

The final regulations ease the filing

burden on taxpayers by permitting them

to adjust their ruling amounts under a

formula or method (rather than by filing

a request for a revised schedule of ruling

amounts). Thus, a taxpayer may

maximize its deductions under section

468A without requesting a revised

schedule of ruling amounts each time a

public utility commission changes the

amount of decommissioning costs

included in the taxpayer’s cost of

service if, under the taxpayer’s formula

or method, the commission’s action

results in a corresponding change in

ruling amounts. The commentators all

agreed with the expanded availability of

ruling amounts based on formulas or

methods.

In addition, the final regulations

modify the mandatory review

provisions applicable to schedules of

ruling amounts determined under a

formula or method. The proposed

regulations eliminate the rule requiring

review of those schedules after 5 years

but make those schedules subject to the

general rule requiring review at 10 year

intervals. In addition, the proposed

regulations require taxpayers to request

a revised schedule of ruling amounts if,

beginning with the second taxable year

during which the most recently issued

formula or method is in effect, the

ruling amount for a taxable year (1)

differs by more than 25 percent from the

ruling amount for any preceding taxable

year during which such formula or

method was in effect; or (2) differs by

more than 10 percent from the ruling

amount for the immediately preceding

taxable year. The commentators

generally favored either a retention of

the 5 year review period without limits

on differences in ruling amounts or an

increase in the percentage by which

ruling amounts are permitted to differ.

In response to these suggestions, the

final regulations retain the 5 year review

requirement, increase the overall

percentage by which ruling amounts

may differ, and eliminate the 10 percent

limitation on changes from one year to

the next.

Some commentators suggested that all

elements of a formula should be

permitted to be variable. Nothing in the

proposed regulations was meant to

suggest otherwise. In order to afford

different taxpayers maximum flexibility

in using a formula, the regulations do

not specify which elements must be

fixed and which must be variable.

Instead, the formula, itself, will

determine whether an element is fixed

or variable. A fixed element is one that

is assumed to retain the same value

regardless of action by the applicable

public utility commission.

Some commentators suggested that a

taxpayer that recently received a

schedule of ruling amounts should be

permitted to vary this schedule using a

formula or method that has not been

approved by the Service. This

suggestion is inconsistent with the

Service’s obligation to issue and review

schedules of ruling amounts and is not

adopted.

Several commentators requested that

the existing user fee for obtaining a

schedule of ruling amounts under

section 468A is excessive and should be

waived or reduced. Because this subject

is not within the scope of this

regulations project, it is not addressed

in the final regulations.

Finally, some commentators

suggested that the regulations should

address the situation where a taxpayer,

based on a good faith but erroneous

calculation of the percentage

limitations, fails to comply with the

mandatory review provisions. Partly in

response to this suggestion, the

percentage limitation has been

simplified.

Effective Date

These regulations are applicable for

requests for schedules of ruling amounts

made on or after January 20, 1998.

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in EO

12866. Therefore, a regulatory

assessment is not required. It has also

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) does not apply to these

regulations. It is hereby certified that the

collection of information in the

regulation will not have a significant

impact on a substantial number of small

entities. This certification is based on

the fact that taxpayers with qualifying

interests in a nuclear power plant are

generally large entities. Thus, because

the regulation applies only to these

taxpayers and does not impose a

collection of information on small

entities, the Regulatory Flexibility Act

(5 U.S.C. chapter 6) does not apply.

Pursuant to section 7805(f) of the

Internal Revenue Code, the notice of

proposed rulemaking preceding these

regulations was submitted to the Chief

Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Drafting Information

The principal author of these

regulations is Peter Friedman, Office of

Assistant Chief Counsel (Passthroughs

and Special Industries). However, other
2894 Federal Register / Vol. 63, No. 12 / Tuesday, January 20, 1998 / Rules and Regulations

personnel from the IRS and Treasury

Department participated in their

development.

List of Subjects

26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

26 CFR Part 602

Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 1 and 602

are amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 continues to read in part as

follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.468A–2 is amended

as follows:

1. The text of paragraph (f)(3)

following the heading is designated as

paragraph (f)(3)(i).

2. Paragraph (f)(3)(ii) is added.

The addition reads as follows:

§ 1.468A–2 Treatment of electing taxpayer.

* * * * *

(f) * * *

(3) * * *

(i) * * *

(ii) The requirement of this paragraph

(f)(3) does not apply if the taxpayer

determines its schedule of ruling

amounts under a formula or method

obtained under § 1.468A–3(a)(4) and the

cost of service amount is a variable

element of that formula or method.

* * * * *

Par. 3. Section 1.468A–3 is amended

as follows:

1. Paragraph (a)(4) is revised.

2. Paragraph (e)(5) is added.

3. Paragraphs (i)(1)(ii)(A),

(i)(1)(iii)(A)(3), and (i)(1)(iii)(B) are

revised.

4. Paragraph (i)(1)(iii)(C) is added.

The revisions and additions read as

follows:

§ 1.468A–3 Ruling amount.

(a) * * *

(4) The Internal Revenue Service will

approve, at the request of the taxpayer,

a formula or method for determining a

schedule of ruling amounts (rather than

a schedule specifying a dollar amount

for each taxable year) that is consistent

with the principles and provisions of

this section. See paragraph (i)(1)(ii) of

this section for a special rule relating to

the mandatory review of ruling amounts

that are determined pursuant to a

formula or method.

* * * * *

(e) * * *

(5) A formula or method obtained

under paragraph (a)(4) of this section

may provide for changes in an estimated

date described in paragraph (e)(1) or (2)

of this section to reflect changes in the

ratemaking assumptions used to

determine rates (whether interim or

final) that are established or approved

by the applicable public utility

commission after the filing of the

request for approval of a formula or

method.

* * * * *

(i) * * *

(1) * * *

(ii)(A) Any taxpayer that has obtained

a formula or method for determining a

schedule of ruling amounts for any

taxable year under paragraph (a)(4) of

this section must file a request for a

revised schedule on or before the earlier

of the deemed payment deadline for the

fifth taxable year that begins after its

taxable year in which the most recent

formula or method was approved or the

deemed payment deadline for the first

taxable year that begins after a taxable

year in which there is a substantial

variation in the ruling amount

determined under the most recent

formula or method. There is a

substantial variation in the ruling

amount determined under the formula

or method in effect for a taxable year if

the ruling amount for the year and the

ruling amount for any earlier year since

the most recent formula or method was

approved differ by more than 50 percent

of the smaller amount.

* * * * *

(iii) * * *

(A) * * *

(3) Reduces the amount of

decommissioning costs to be included

in cost of service for any taxable year;

(B) The taxpayer’s most recent request

for a schedule of ruling amounts did not

provide notice to the Internal Revenue

Service of such action by the public

utility commission; and

(C) In the case of a taxpayer that

determines its schedule of ruling

amounts under a formula or method

obtained under paragraph (a)(4) of this

section, the item increased, adjusted, or

reduced is a fixed (rather than a

variable) element of that formula or

method.

* * * * *

Par. 4. Section 1.468A–8 is amended

by adding paragraph (b)(12) to read as

follows:

§ 1.468A–8 Effective date and transitional

rules.

* * * * *

(b) * * *

(12) Use of formula or method.

Section 1.468A–2(f)(3)(ii) and § 1.468A–

3(a)(4) (to the extent it permits a formula

or method when the applicable public

utility commission estimates the cost of

decommissioning in future dollars),

(e)(5), (i)(1)(ii)(A) (to the extent it

requires the taxpayer to file a request for

a revised schedule because of a

substantial variation in ruling amounts),

and (i)(1)(iii)(C) apply only to requests

for a formula or method submitted on or

after January 20, 1998 and to formulas

and methods obtained in response to

those requests.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 5. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 6. In § 602.101(c), the entry for

1.468A–3 in the table is revised to read

as follows:

§ 602.101 OMB Control numbers.

* * * * *

(c) * * *

CFR part or section where

identified or described

Current

OMB control No.

* * * * *

1.468A–3 ................................... 1545–1269

1545–1378

1545–1511

* * * * *

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

Approved: January 9, 1998.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury

(Tax Policy).

[FR Doc. 98–1177 Filed 1–16–98; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 117

[CGD01–96–002]

RIN 2115–AE47

Drawbridge Operation Regulations:

Mystic River, MA

AGENCY: Coast Guard, DOT.