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Citation: 70 Fed. Reg. 52926 2005

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### 52926 Federal Register/Vol. 70, No. 171/Tuesday, September 6, 2005/Rules and Regulations

[FR Doc. 05-17538 Filed 9-2-05; 8:45 am]

BILLING CODE 6560-50-P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Parts 52 and 81 

### [R09-OAR-2005-AZ-0003; FRL-7960-8]
Approval and Promulgation of Implementation Plans and Designation of Areas forAir Quality Planning Purposes; Arizona; Correctionof Redesignation of Phoenix to

- Attainment forthe Carbon Monoxide Standard
AGENCY: Environmental Protection Agency (EPA). ACTION: Direct final rule.

SUMMARY: In today's action, EPA is taking direct final action to amend the regulations that identify revisions to the Arizona state implementation plan and theregulations that identify area designations within Arizona. In so doing,EPA is acting pursuant to the Agency's authority under the Clean Air Act to correct errorsmade in approving planrevisions and arearedesignations. The purpose ofthis action is to correct

an error in the'adoption and submittal date shown for a revision to the implementation plan that EPA recently approved and to correct a transcription

error in, and to make amore general correction to, the boundary description ofthe metropolitan Phoenix carbon monoxide area that E.PA recently redesignated to attainment. EFFECTIVE DATE: This rule is effective on November 7, 2005, without further notice, unless we receive adverse
comments by October 6, 2005. Ifwe receive adverse comments, we will publish a timely withdrawal inthe Federal Register to notify the public that thisrule willnot take effect.
ADDRESSES: Submit comments, identified by docketnumber R09-OAR2005-AZ--, by one ofthe following methods:

1. Agency Web site:http:// docket.epa.gov/rmepub/.EPA prefers receiving comments through this electronic public docket and comment system. Followthe on-line instructions
to submit comments.

2. FederaleRulemakingPortal: http://www.regulations.gov. Followthe on-line instructions.

3. E-mail: tax.wienke@epa.gov. 4. Mailordeliver:Wienke Tax, Office ofAir Planning (AIR-2), U.S. Environmental Protection Agency, Region 9, 75 Hawthorne Street, San Francisco, CA 94105-3901.

Instructions: All comments will be included inthe public docket without change and may be made available online at http://docket.epa.gov/rmepub/

, including any personal information provided, unless the comment includes Confidential Business Information (CBI)

orother information whose disclosure is restricted by statute. Information that you consider CBI or otherwise protected should be clearly identified as such and should notbe submitted through the agency Web site,eRulemaking portal, or e-mail. The agency Web site and eRulemaking portal are "anonymous access" systems, and EPA will notknow
your identify orcontact information unless you provide itin-the body of your comment. Ifyou send e-mail directly to EPA, your e-mail address willbe automatically captured and included as part ofthe public comment. -IfEPA cannot read your comment due
to technical difficultiesand cannot contact you forclarification, EPA may *notbe able to consider your comment. Docket:The index to the docket for this action is available electronically at http://docket.epa.gov/rmepub and in hard copy at EPA Region 9, 75 Hawthorne Street, San Francisco, California. While all documents in the docket are listed in the index, some information may be publicly available only at the hard copy location (e.g., copyrighted material), and some may notbe publicly available ineither' location (e.g., CBI). To inspectthe hard copy materials, please schedule an appointment during normal business hours with the contact listed inthe FOR FURTHER INFORMATION CONTACT section. FOR FURTHER INFORMATION CONTACT: Wienke Tax, AirPlanning Office (AIR2), U.S. Environmental Protection Agency, Region 9, (520) 622-1622 oremail to tax.wienke@ega.gov. SUPPLEMENTARY INFORMATION: Throughout this document, the terms "we," "us," and "our" refer toEPA.
Table ofContents I.Background II.Final Action II. Statutory andExecutive Order Reviews
I. Background

On March 9, 2005, pursuant to the Clean Air Act (CAA), we publishedi a finalrulemaking action (1) approving various planelements contained in two submittals of revisions to the Arizona
state implementation plan (SIP) bythe Arizona Department ofEnvironmental Quality (ADEQ), (2) approving Arizona's request forthe redesignation ofthe metropolitan Phoenix carbon monoxide (CO) areato attainment forthe carbon monoxide (CO) national ambient air quality standard (NAAQS), and (3) redesignating the boundary ofthe metropolitan Phoenix CO area to exclude the Gila River Indian Reservation. See 70 FR 11553 (March 9, 2005). Our March 9thfinal rulemaking contained amendments to 40 CFR part 52 relating to the two SIP submittals and amendments to 40 CFRpart 81 relating
to the redesignation actions. Three of these amendments were incorrect.

First, inthe regulatory language we added as 40 CFR 52.120(c)(118), we incorrectly listedADEQ's adoption and submittal date for the RevisedMAG 1999 SeriousArea CarbonMonoxide Plan fortheMaricopaCounty Nonattainment Area (March 2001) as March 30, 2001. The correct date for both ADEQ's adoption and submittal of this plan (to EPA) as arevision to the Arizona SIP is April 18, 2001 and today's action revises 40 CFR 52.120(c)(118) accordingly.

Second, in 40 CFR 81.303, which contains atable describing in detail the metropolitan Phoenix CO area, we did
not intend any change to paragraph 13

as codified prior to our March 9th final rule exceptfor the added phrase at the end ofthe paragraph ("except that portion in the Gila River Indian Reservation"), but,through transcription error, we made other changes to that paragraph that were unintended. In today's notice, we are correcting paragraph 13 byreinstating the prior language.

Third, also inthe CO table in 40 CFR 81.303, we codified our action to redesignate the boundary ofthe metropolitan Phoenix CO area to exclude the Gila River Indian Reservation by adding the phrase, "except that portion inthe Gila River Indian Reservation," to the end ofeach ofthe 28paragraphs that describe the metropolitan Phoenix CO area. In 40 CFR 81.303, the metropolitan Phoenix CO area is described byreference to a point oforigin (paragraph 1)that lies at the southeast corner ofthe area followed by a series of27 contiguous lines (paragraphs 2 through 28) that starts at the point of origin andproceeds in a counter-clockwise direction back to the point of origin.We now find that excluding "the portion in the Gila River Indian Reservation" from the point of origin and from each.ofthe lines that collectively define the CO area was

erroneous because the description, as revised inour March 9thfinal rule, is ambiguous as to its southernboundary.

We continue to believe that the redesignation ofthe boundary ofthe metropolitan Phoenix CO area to

HeinOnline -- 70 Fed. Reg. 52926 2005

### Federal Register/Vol. 70, No. 171 /Tuesday, September 6, 2005 /Rules and Regulations

exclude the Gila RiverIndian Reservation is appropriate and are taking action today to re-codify this redesignation in a manner that avoids theunintended ambiguity introduced by the regulatory textwe used in our March 9th finalrule. Specifically, in this action, we are revising each ofthe 28 paragraphs that-define the metropolitan Phoenix CO area in 40 CFR 81.303 toremoee the phrase that

we added in our March 9th final rule (i.e.,"except-that portion ih the Gila River Indian Reservation") and are instead adding a newparagraph 29 that states: "except that portion ofthe area, defined by paragraphs 1through 28 above thatlies within the Gila River Indian Reservation." '

We aretaking this action under our authority in CAA section 110(k)(6). Section 110(k)(6) provides, "Whenever the Administrator determines that the Administrator's action approving, disapproving, or promulgating any plan

or plan revision (or partthereof), area designation, redesignation, classification, orreclassification was in error, the Administrator mayin the

same manner asthe approval disapproval, or promulgation revise such action as appropriate without requiring any further submission from the State." For thereasons stated above,

we are correcting errorsin the regulatory language we promulgated in approving a revision to the Arizona SIP, inredesignating the metropolitan Phoenix CO areato attainment, and in • redesignating the boundary ofthe metropolitan Phoenix CO area to exclude the Gila River Indian Reservation.
II. Final Action

in this action, EPA is correcting amendments to 40 CFRpart.52,subpart D, and 40CFR part 8'1, subpart C,that

were contained inthe final Federal Register notice published onMarch 9, 2005 approving submittals ofrevisions to the Arizona state implementation plan, redesignating the metropolitan Phoenix carbon monoxide area to attainment for the carbon moffoxide National Ambient Air Quality Standards, andredesignating the boundary of the metropolitan Phoenix CO area to exclude the Gila River Indian Reservation. Specifically, this adtion amends 40 CFR 52.120 relating to the, Arizona SIP and 40 CFR 81.303 describing the boundaries ofthe metropolitan Phoenix CO area.

The EPA is publishing this rule without prior proposal because the Agency views this as anoncontroversial amendment and anticipates no adverse comments. However, inthe proposed rules section ofthis Federal Register publication, EPA is publishing a separate document that will serve as the proposal to correct the errors described herein should adverse comments be filed. This action will be effective November 7,2005, without further notice unless the EPAreceives relevant adverse comments by October 6, 2005.

Ifthe EPA receives such comments, then EPA willpublislh a document withdrawing the finalrule and informing the public that the rule will not take effect. All public comments received will then be addressed ina subsequent final rule based on the proposed rule. The EPA will not institute asecond comment period. Parties interested incommenting should do so at this time.Ifno such comments

arereceived, the public is advised that this rule willbe effective onNovember 7, 2005 and no further action willbe taken on the proposed rule.Please note that ifEPA receives adverse comment

on an amendment, paragraph, orsection ofthis rule, and ifthat provision may-be severed from the remainder ofthe rule,. EPA may adopt as final those provisions ofthe rulethat are notthe subject of an adverse comment.
Ill. Statutory and Executive Order Reviews

Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not A"significant regulatory action" and therefore is not subject toreview by the Office ofManagement and Budget. For this reason, this action is also not subject to Executive Order 13211, "Actions Concerning Regulations That Significantly AffectEnergy Supply, Distribution, or Use" (66FR 28355, May 22, 2001). This action merely corrects a previous EPA action and imposes no additional requirements. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities underthe Regulatory Flexibility Act (5U.S.C. 601 etseq.). Because this rule corrects a previous EPA action and does notimpose any additional enforceable duty, it does not contain any unfunded mandate orsignificantly

oruniquely affect small governments, as described in the Unfunded Mandates Reform Act of1995 (Pub.L. 104-4).

Executive Order 13175, entitled "Consultation and Coordination with Indian Tribal Governmehts" (65 FR 67249, November 6, 2000), requires EPA to develop an accountable process to

ensure "meaningful and timely input by tribal officials in the development of regulatory policies that have tribal implications." "Policies that have tribal implications" are defined in the Executive Order to include regulations that have "substantial direct effects on
one or more Indiantribes, onthe relationship between the Federal government and the Indian tribes, or on the distribution of'power and responsibilities between the FederaJ government and Indian tribes."

Under section 5(b) ofExecutive Order 13175, EPA may notissue a regulation that has tribal implications, that imposes substantial direct compliance

- costs, and that is notrequired by statute, unless the Federal government provides the funds necessary topay the direct compliance costs incurred by tribal governments, orEPA consultswith tribal officials early inthe process of developing the proposed regulation. Under section 5(c) ofExecutive Order 13175, EPA may not issue aregulation thathas tribal implications and that preempts tribal law, unless the Agency consults with tribal officials early in the process ofdeveloping the proposed regulation.

As discussed above, in a previous action, EPA excluded the Gila River Indian Reservation from the metropolitan Phoenix CO-area, and this action merely corrects the corresponding regulatory text. Consistent with EPA policy, EPA has discussed the need forcorrection ofthe previous action with representatives of the Gila River Indian Community. EPA finds that this action, which simply corrects an action that the Agency has previously taken, will neither impose substantial direct compliance costs on tribal governments, nor preempt tribal law. Thus, the requirements ofsections 5(b) and 5(c) ofthe Executive Order do not apply to this rule.

This action also does not have Federalism implications because it does not have substantial direct effects onthe States, onthe relationship between the national government and the States, or
on the distribution of power and responsibilities among the various levels ofgovernment, as specified in Executive Order 13132 (64 FR43255, August 10, 1999). This action merely corrects aprevious EPArule, and does not alterthe relationship or the distribution ofpower and responsibilities established in the Clean Air Act. Thisrule also is not subject to Executive Order 13045 "Protection of Children from Environmental Health Risks and Safety Risks" (62FR 19885, April 23,. 1997), because itisnot economically significant as defined in Executive Order 12866, andbecause the Agency does nothave reason tobelieve the environmental health orsafety risks addressed by this rule present a disproportionate riskto children. 

### 52927

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### 52928 Federal Register/Vol. 70, No. 171/ Tuesday, September 6, 2005 /Rules -and Regulations

This rule does notinvolve establishm'ent oftechnical standards, and thus, the requirements ofsection 12(d) ofthe National Technology Transfer and Advancement Act of1995 (15 U.S.C. 272 note) donot apply. This rule doesnot impose an information collection burden under the provisions ofthe Paperwork Reduction Act of1995 (44 U.S.C. 3501 etseq.).

The Congressional Review Act, 5 U.S.C. section 801 etseq., 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 acopy of the rule, to each House ofthe Congress and to the Comptroller General ofthe. United States.EPA will submit areport containing this rule and other required information to theU.S. Senate, the U.S. House ofRepreseritatives, and the Comptroller General ofthe United States prior topublication ofthe rule in the Federal Register.A majorrule
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. section 804(2).

Under section 307(b)(1) ofthe Clean Air Act, petitions forjudicial review of this actionmust be filed in the United States Court ofAppeals forthe appropriate circuitby November 7, 2005. Filing a petition for reconsideration by theAdministrator of this finalrule does not affect the finality ofthis rule forthe purposes ofjudicial review nor does itextend the time within which apetition for judicial reviewmay be filed, and shall not postpone the effectiveness ofsuch rule

oraction. This action may notbe challenged later in proceedings to enforce its requirements. (See CAA section 307(b)(2).)

List ofSubjects

40 CFRPart 52

Environmental protection, "Air pollutioncontrol; Carbon monoxide,

.Incorporation byreference,.. Intergovernmental relations, Reporting and recordkeeping requirements. 40 CFRPart81

Environmental protection, Air pollutioncontrol, National parks, Wilderness areas.

Dated: July 15, 2005. LauraYoshii, DeputyRegionalAdministrator, RegionIX.

wChapterI,title40 oftheCode of Federal Regulations is amended as follows:

PART 52-[AMENDED]

m1.The authority citationforpart52 continues to read as follows:

Authority:42 U.S.C. 7401 etseq. 

### Subpart D-Arizona

m.

2.Section 52.120 isamended by revising paragraph (c)(118) toread as follows:
§52.120 Identificationofplan.

•(c) * * * (118) The following plan was submitted on April 18, 2001, by the Governor's designee. (i)

Incorporation byreference. (A) Arizona Department of Environmental Quality.

-(1) RevisedMAG 1999SeriousArea Carbon MonoxidePlan fortheMaricopa CountyNonattainment Area, dated March 2001, adopted bythe Maricopa Association ofGovernments onMarch 28, 2001, and adopted bythe Arizona Department ofEnvironmental Quality

on April 18, 2001.


### PART 81 .-- [AMENDED]

m 1. The authority citation forpart 81 continues to read asfollows:

Authority: 42 U.S.C. 7401 etseq. 

### Subpart C-Section 107 Attainment Status Designations

m2. In§81.303, thetable entitled "Arizona-Carbon Monoxide" is amended by.revising the entry forthe Phoenix Area toread as follows: §81.303 Arizona.

ARIZONA-CARBON MONOXIDE

Designation" Classification Designated area Date Type Date Type

Phoenix Area: M

aricopa County (part)

.................................................................................................. Phoenix nonattainment area boundary: 1. Commencing at a.point which is the intersection of the eastern line of Range 7

East, Gila and Salt River Baseline and Meridian, and the southern line of point Township 2 South, said point is the southeastern corner of Maricopa Association of Governments Urban Planning Area, which is the point of beginning; 2. thence, proceed northerly along the eastern line of Range 7 East, which is the

common boundary between Maricopa and Pinal Counties, as described in Arizona Revised Statutes Section 11-109, to a point where the eastern line of Range 7 East intersects the northern line of Township 1 North, said point is also the intersection of the Maricopa County Line and the Tonto National Forest -Boundary,as established by Executive Order 869 dated July 1, 1908, as amended and and the shown on the U.S. Forest Service 1969 Planirnetric Maps; 3. thence, westerly along the northern line of Township 1 North to pproximately the

southwest corner of the southeast quarter of Section 35, Township 2 North, Range 7 East, said point being the boundary of the Tonto National Forest and Usery.Mountain Semi-Regional Park; 4. thence, northerly along the Tonto National Forest Boundary, which is generally

the western line of the east half of Sections 26 and 35 of Township 2 North, Range 7 East, to a point which is where the quarter section line intersects with the northern line of Section 26, Township 2 North, Range 7 East, said point also being the northeast comer of the Usery Mountain Semi-Regional Park; 4/8/2005 1Attainment

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### Federal: Register/Vol.,' 70, No. 171/ Tuesday, September 6, 2005/Rules and Regulations

ARIZONA-CARBON MONOXIDE-Continued

Designation Classification Designated area Date Type Date Type 

### 52929

5. thence, westerly along the Tonto National Forest Boundary, which is generally

the south line of Sections 19, 20, 21 and 22 and the southern line of the west half of 'Section 23, Township 2 North, Range 7 East, to a point whcih is the southwest corner of.Section 19, Township 2 North, Range 7 East; 6. thence, northeasterly along the Tonto National Forest Boundary to a point where.

the Tonto National Forest Boundary intersects with the eastern boundary of the Salt River Indian Reservation, generally described as the center line of the Salt RiverChannel; 7. thence, northeasterly and northerly along the common boundary of the Tonto Natiorfal Forest and the Salt River Indian Reservation to a point which is the northeast corner of the Salt River Indian Reservation and the southeast corner of the Fort McDowell Indian Reservation, as shown on the plat dated July22, 1902, and recorded with the U.S. Government on June 15, 1902; 8. thence, northeasterly along the common boundary between the Tonto National

Forest and the Fort McDowell Indian Reservation to a point which is the northeast corner ofthe Fort McDowell Indian Reservation; 9. thence, southwesterly along the northern boundary of the Fort McDowell Indian

Reservation, which line is a common boundary with the Tonto National Forest, to
a point where the boundary intersects with the eastern line of Section 12, Township 4 North, Range 6 East; 10. thence, northerly along the eastern line of Range 6 East to a point where the

eastern line of Range 6 East intersects with the southern line of Township 5 North, said line is the boundary between the Tonto National Forest and the east boundary of McDowell Mountain Regional Park; 11; thence, westerly along the southern line of Township 5 North to a point where

the southern line intersects with the eastern line of Range 5 East which line is the boundary of Tonto National Forest and the north boundary. of McDowell Mountain Regional Park; 12. thence, northerly along the eastern line of Range 5 Easito a point where the

eastern line of Range 5 East intersects with., the northern line of To~vnship 5 North, which line is the boundary of theTonto National Forest; 13. thence, westerly along the northern line of Township 5 North to a point where

-the northern line of Township'5 North intersects with the easterly line of Range 4 East, said line is the boundary of Tonto National Forest; 14. thence, northerly along the eastern line of Range 4 East to a point where the

eastern line of Range 4 East intersects with the northem line of Township 6 North, which line is the boundary of the Tonto National Forest; 15. thence, westerly along the northern line of Township 6 North to a point of intersection with the Maricopa-Yavapai County line; which is generally described in Arzona Revised Statutes Section 11-109 as the center line of the Aqua Fria River (Also the north end of Lake Pleasant); 16. thence, southwesterly and southerly along the Maricopa-Yavapai County line to

-a point which is described by Arizona Revised Statutes Section 11-109 asbeing
on the center line of the Aqua Fria River, two miles southerly and below the mouth of Humbug Creek; 17. thence, southerly along the center line of Aqua Fra River to the intersection of

the center line of the Aqua Fria River and the center line of Beardsley Canal, said point is generally in the northeast quarter of Section 17, Township 5 North, Range 1 East, as shown on the U.S. Geological, Survey's Baldy Mountain, Arizona Quadrangle Map, 7.5 Minute series (Topographic), dated 1964; 18. thence, southwesterly and southerly along the center line of Beardsley Canal to

a point which is the center line of,Beardsley Canal where it intersects with the center lineof Indian School Road; 19. thence, westerly along the center line of West Indian School Road to a point

where the center line of West Indian School Road intersects with the center line of N6rth Jackrabbit Trail; 20. thence, southerly along the center line of Jackrabbit Trail approximately nine

and three-quarter miles to a point where the center line of Jackrabbit Trail intersects with the Gila River, said point is generally on the north-south quarter section line of Section 8, Township 1South, Range 2 West; 21. thence northeasterly and easterly up the Gila River to a point where the Gila

River intersects with the northern extension of the western boundary of Estrella Mountain Regional Park, which point is generally the quarter corner of the northern line of Section 31, Township 1 North, Range 1West; 22. thence, southerly along the extension of the western boundary and along the

western boundary of Estrella Mountain Regional Park to a point where the southern extension of the western boundary of Estrella Mountain Regional Park intersects with the southern line of Township 1 South;

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### 52930 Federal Registqr/Vol. 70, No. 171,/Tuesday, September_6, 2005i/RRjtes and Reguiations:

ARIZONA-CARBON MONOXIDE-Continued
Designation. Classification Designated area Date Type Date Type

23. thence" easterly along the southern line of Township 1South to a point where

- the south line of Township 1 South intersects with the western line of Range 1

East, which line isgenerally the southern boundary of Estrella Mountain Regional Park; 24. thence, southerly along the western line of Range 1East to the southwest corner of Section 18, Township 2 South, Range 1 East, said line is'the western boundary of the Gila River Indian Reservation; 25. thence, easterly along the southern boundaryof the Gila River Indian ReservationWhich isthesouthern lineof Sections 13, 14, 15, 16, 17, and 18,Township 2 South, Range 1East, to the boundary between Maricopa and Pinal Counties as described inArizona Revised Statutes Sections 11-109 and 11-113, which isthe eastern lineof Range 1East; 26. thence, northerly along the eastern boundary of Range 1 East, which isthe

common boundary between Manc6pa and Pinal Counties, to a.point where the eastern line of Range 1East intersects the Gila River; 27. thence, southerly up the Gila River to a point where the Gila River intersects

withthe southern lineofTownship 2South; and 28. thence, easterly along the southern lineof Township 2South to the.point of beginning which isa point where the southern line of Township.2South intersects withthe easter line Range.7 East; 29. except that portion of the area defined by paragraphs 1through 28 above that

lieswithin the Gila River Indian Reservation.

[FR Doc. 05-17539 Filed 9-2-05; 8:45 am]

BILLING CODE 6560-50-P

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Part 414

CMS-1325-IFC2
RIN 0938-AN58

Medicare Program; Competitive AcquisitionofOutpatient Drugs and BiologicalsUnder Part B: " Interpretation and Correction
AGENCY: Centers forMedicare & Medicaid Services (CMS), HHS. ACTION: Interim final rule; interpretation and correction.

SUMMARY: This interim final rule clarifies ourtimeline for implementation ofthe competitive acquisition program under section 1847B ofthe Social Security Act and corrects technical errorsthat appeared in the addenda to the interim final rule with comment periodpublished in the Federal Register onJuly 6., 2005 entitled "Competitive Acquisition ofOutpatient Drugs and Biologicals Under Part B." EFFECTIVE DATE: This rule is effective September 6, 2005. FOR FURTHER INFORMATION CONTACT: Lia Prela, (410) 786-0548. SUPPLEMENTARY INFORMATION:

I. Background

A. ClarificationofTimeline for ImplementationofCAP

OnJuly 6, 2005, we published an interim final rule with comment period (70FR 39022) in.the Federal Register with respect toprovisions ofthe Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) that require the implementation ofa competitive acquisition program (CAP) forcertain Medicare PartB drugs notpaid on a cost

or prospective payment systembasis. Physicians will generally begiven a choice between obtaining these drugs from vendors selected through a competitive bidding process or directly purchasing these drugs and being paid under the average sales price (ASP) system.

In the July 6, 2005 interim final rule,

we stated that implementation ofthe CAP would take place OnJanuary 1, 2006 to coordinate the CAPphysician election process with the Medicare participating physician election process described in section 1842(h) ofSocial Security Act (the Act). Subsequent to thepublication ofthe July 6, 2005 interim finalrule, we received comments requesting a delay in implementation ofthe CAP from a variety ofsources including written public comments as well ascomments voiced during the conference call.for potential vendors that we held on July 8, 2005. , Effective August 3,2005, we suspended the-vendor bidding process that began withpublication ofthe interim final rule onJuly 6, 2005, to allowus more time to fully review public comments on the interim final rule and also to further refine the bidding process. We provided notification ofthe suspension onthe CMSWeb site http://www.cms.hhs.govproviders/drugs/compbid/ and through the pharmacy and physician Listservs. We will publish a final rule for implementing the CAP after we analyze the additional comments on the interim final rule and determine the best

manner for improving the efficiency of the CAP and increasing potential participation ofboth vendors and physicians in the progra.

We will announce the dates forthe

new vendorbidding period concurrent with the publication ofthe finalrule. We also will be announcing a special physician election period. Currently, we expect that drugs will firstbe delivered through the CAPby July 2006. During the special election period, physicians will have the opportunity to elect to participate in the CAP from its start date in 2006 through the end ofcalendar year 2006.

As we specified in the July 2005 Federal Register document, we will continue to accept comments on the interim final ruleuntil September 6, 2005.

In section II ofthis document, we provide clarification ofthe timeline for implementation ofthe CAP as well as further interpretation ofwhat will

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