12076 Federal Register / Vol. 74, No. 54 / Monday, March 23, 2009 / Rules and Regulations 

Metal halide lamp fixture means a 

light fixture for general lighting 

application designed to be operated 

with a metal halide lamp and a ballast 

for a metal halide lamp. 

Probe-start metal halide ballast means 

a ballast that starts a probe-start metal 

halide lamp that contains a third 

starting electrode (probe) in the arc tube, 

and does not generally contain an 

igniter but instead starts lamps with 

high ballast open circuit voltage. 

Pulse-start metal halide ballast means 

an electronic or electromagnetic ballast 

that starts a pulse-start metal halide 

lamp with high voltage pulses, where 

lamps shall be started by the ballast first 

providing a high voltage pulse for 

ionization of the gas to produce a glow 

discharge and then power to sustain the 

discharge through the glow-to-arc 

transition. 

Test Procedures 

§ 431.323 Materials incorporated by 

reference. 

(a) General. We incorporate by 

reference the following standards into 

Subpart S of Part 431. The material 

listed has been approved for 

incorporation by reference by the 

Director of the Federal Register in 

accordance with 5 U.S.C. 552(a) and 1 

CFR part 51. Any subsequent 

amendment to a standard by the 

standard-setting organization will not 

affect the DOE regulations unless and 

until amended by DOE. Material is 

incorporated as it exists on the date of 

the approval and a notice of any change 

in the material will be published in the 

Federal Register. All approved material 

is 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_federal_regulations/ 

ibr_locations.html. Also, this material is 

available for inspection at U.S. 

Department of Energy, Office of Energy 

Efficiency and Renewable Energy, 

Building Technologies Program, 6th 

Floor, 950 L’Enfant Plaza, SW., 

Washington, DC 20024, 202–586–2945, 

between 9 a.m. and 4 p.m., Monday 

through Friday, except Federal holidays, 

or go to: http://www1.eere.energy.gov/ 

buildings/appliance_standards/. 

Standards can be obtained from the 

sources listed below. 

(b) ANSI. American National 

Standards Institute, 25 W. 43rd Street, 

4th Floor, New York, NY 10036, 212– 

642–4900, or go to http://www.ansi.org. 

(1) ANSI C78.43–2004, Revision and 

consolidation of ANSI C78.1372–1997, 

.1374–1997, .1375–1997, .1376–1997, 

.1377–1997, .1378–1997, .1379–1997, 

.1382–1997, .1384–1997, and .1650– 

2003 (‘‘ANSI C78.43’’), American 

National Standard for electric lamps: 

Single-Ended Metal Halide Lamps, 

approved May 5, 2004, IBR approved for 

§ 431.322; 

(2) ANSI C82.6–2005, Proposed 

Revision of ANSI C82.6–1985 (‘‘ANSI 

C82.6’’), American National Standard 

for Lamp Ballasts—Ballasts for HighIntensity Discharge Lamps—Methods of 

Measurement, approved February 14, 

2005, IBR approved for § 431.322; 

(c) NFPA. National Fire Protection 

Association, 11 Tracy Drive, Avon, MA 

02322, 1–800–344–3555, or go to http:// 

www.nfpa.org; 

(1) NFPA 70–2002 (‘‘NFPA 70’’), 

National Electrical Code 2002 Edition, 

IBR approved for § 431.326; 

(2) [Reserved]. 

(e) UL. Underwriters Laboratories, 

Inc., COMM 2000, 1414 Brook Drive, 

Downers Grove, IL 60515, 1–888–853– 

3503, or go to http://www.ul.com. 

(1) UL 1029 (ANSI/UL 1029–2007) 

(‘‘UL 1029’’), Standard for Safety HighIntensity-Discharge Lamp Ballasts, 5th 

edition, May 25, 1994, which consists of 

pages dated May 25, 1994, September 

28, 1995, August 3, 1998, February 7, 

2001 and December 11, 2007, IBR 

approved for § 431.326. 

(2) [Reserved]. 

§ 431.324 Uniform test method for the 

measurement of energy efficiency of metal 

halide ballasts. 

(a) Scope. This section provides test 

procedures for measuring, pursuant to 

EPCA, the energy efficiency of metal 

halide ballasts. 

(b) Testing and Calculations. 

[Reserved] 

Energy Conservation Standards 

§ 431.326 Energy conservation standards 

and their effective dates. 

(a) Except as provided in paragraph 

(b) of this section, each metal halide 

lamp fixture manufactured on or after 

January 1, 2009, and designed to be 

operated with lamps rated greater than 

or equal to 150 watts but less than or 

equal to 500 watts shall contain— 

(1) A pulse-start metal halide ballast 

with a minimum ballast efficiency of 88 

percent; 

(2) A magnetic probe-start ballast with 

a minimum ballast efficiency of 94 

percent; or 

(3) A nonpulse-start electronic ballast 

with either a minimum ballast 

efficiency of 92 percent for wattages 

greater than 250 watts; or a minimum 

ballast efficiency of 90 percent for 

wattages less than or equal to 250 watts. 

(b) The standards described in 

paragraph (a) of this section do not 

apply to— 

(1) Metal halide lamp fixtures with 

regulated lag ballasts; 

(2) Metal halide lamp fixtures that use 

electronic ballasts that operate at 480 

volts; or 

(3) Metal halide lamp fixtures that; 

(i) Are rated only for 150 watt lamps; 

(ii) Are rated for use in wet locations; 

as specified by the National Fire 

Protection Association in NFPA 70 

(incorporated by reference; see 

§ 431.323); and 

(iii) Contain a ballast that is rated to 

operate at ambient air temperatures 

above 50°C, as specified in UL 1029, 

(incorporated by reference; see 

§ 431.323). 

[FR Doc. E9–5935 Filed 3–20–09; 8:45 am] 

BILLING CODE 6450–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 225 

[Regulation Y; Docket No. R–1193] 

Capital Adequacy Guidelines: Trust 

Preferred Securities and the Definition 

of Capital; Delay of Implementation 

Date 

AGENCY: Board of Governors of the 

Federal Reserve System (Board). 

ACTION: Final rule. 

SUMMARY: This final rule delays the 

March 31, 2009, implementation date 

for certain amendments to the Board’s 

capital adequacy guidelines for bank 

holding companies on trust preferred 

securities and the definition of capital 

published by the Board in the Federal 

Register on March 10, 2005. Due to the 

continuing stressed conditions in the 

financial markets and in order to 

promote stability in the financial 

markets and the banking industry as a 

whole, the Board has decided to delay 

until March 31, 2011, the 

implementation date of new 

requirements that: limit the aggregate 

amount of cumulative perpetual 

preferred stock, trust preferred 

securities, and minority interests in the 

equity accounts of most consolidated 

subsidiaries (collectively, restricted core 

capital elements) included in the tier 1 

capital of all bank holding companies; 

require bank holding companies to 

deduct goodwill, less any associated 

deferred tax liability, from the sum of 

core capital elements in calculating the 

amount of restricted core capital 

elements that may be included in tier 1 

capital; and impose further limits on the 


dwashington3 on PROD1PC60 with RULES
Federal Register / Vol. 74, No. 54 / Monday, March 23, 2009 / Rules and Regulations 12077 

1 70 FR 11827 (March 10, 2005). 

2See 12 CFR part 225, Appendix A, sections 

II.A.1.b.i and II.A.2.d.iv. 

3 70 FR 11827 (March 10, 2005). 

4 In addition, on October 22, 2008, the Board 

issued an interim final rule that allows BHCs to 

include new senior perpetual preferred securities 

issued to the U.S. Department of the Treasury 

(Treasury) under the capital purchase program 

announced by the Secretary of the Treasury on 

October 14, 2008, in tier 1 capital without limit. 73 

FR 62851 (October 22, 2008). 

5An internationally active BHC is defined as a 

BHC that (1) as of its most recent year-end FR Y– 

9C reports total consolidated assets equal to $250 

billion or more or (2) on a consolidated basis, 

reports total on-balance-sheet foreign exposure of 

$10 billion or more on its filings of the most recent 

year-end FFIEC 009 Country Exposure Report. See 

12 CFR part 225, appendix A, section II.A.1.b.i.(2) 

at n. 6. 

6See 70 FR 11830. 

7See 69 FR 28851 (May 19, 2004). 

8 70 FR 11832. 

9 Id. 

10With respect to the Board’s first quarter 2009 

regulatory reports, the Board will provide 

supplemental instructions to BHCs on how to report 

overages in their restricted core capital elements. 

amount of restricted core capital 

elements that internationally active 

bank holding companies may include in 

tier 1 capital. 

DATES: This amendment is effective 

March 23, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Norah M. Barger, Deputy Director, (202) 

452–2402, or John Connolly, Senior 

Project Manager, (202) 452–3621, 

Division of Banking Supervision and 

Regulation; or April C. Snyder, Counsel, 

(202) 452–3099, Benjamin W. 

McDonough, Senior Attorney, (202) 

452–2036, or Kathleen M. O’Day, 

Deputy General Counsel, (202) 452– 

3786, Legal Division; Board of 

Governors of the Federal Reserve 

System, 20th Street and Constitution 

Ave., NW., Washington, DC 20551. For 

the hearing impaired only, 

Telecommunication Device for the Deaf 

(TDD), (202) 263–4869. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On March 10, 2005, the Board 

published in the Federal Register (70 

FR 11827) a final rule (final rule) 

amending its risk-based capital 

standards for bank holding companies 

(BHCs) (1) to allow the continued 

inclusion of outstanding and 

prospective issuances of trust preferred 

securities in the tier 1 capital of BHCs, 

subject to stricter requirements,1 and (2) 

to revise the requirements generally 

applied to the aggregate amount of 

restricted core capital elements 

(including trust preferred securities) 

included in the tier 1 capital of BHCs.2

These new limits on trust preferred 

securities and other restricted core 

capital elements (new limits) were 

scheduled to become effective on March 

31, 2009. As noted in the preamble to 

the final rule, the Board adopted the 

final rule to address supervisory 

concerns, competitive equity 

considerations, and changes in generally 

accepted accounting principles and to 

strengthen the definition of regulatory 

capital for BHCs.3

Under limits on restricted core capital 

elements that are currently in effect, a 

BHC generally may include in tier 1 

capital cumulative perpetual preferred 

stock and trust preferred securities up to 

25 percent of the sum of core capital 

elements (including cumulative 

perpetual preferred stock and trust 

preferred securities).4 The new limits 

would limit restricted core capital 

elements includable in the tier 1 capital 

of a BHC to 25 percent of the sum of 

core capital elements (including 

restricted core capital elements), net of 

goodwill less any associated deferred 

tax liability. In addition, internationally 

active BHCs would be subject to a 

further limitation.5 In particular, the 

amount of restricted core capital 

elements (other than qualifying 

mandatory convertible preferred 

securities) that an internationally active 

BHC could include in tier 1 capital 

could not exceed 15 percent of the sum 

of core capital elements (including 

restricted core capital elements), net of 

goodwill less any associated deferred 

tax liability.6

II. Postponement of the Implementation 

Date 

On May 19, 2004, the Board issued a 

notice of proposed rulemaking 

(proposed rule) under which the new 

limits would have come into force on 

March 31, 2007.7 Several commenters to 

the proposed rule asked the Board to 

extend the transition period for 

compliance with the new limits.8 These 

commenters noted that an extended 

transition period would allow affected 

BHCs substantially more flexibility in 

managing their compliance with the 

new limits through a combination of 

redeeming outstanding trust preferred 

securities with expired no-call periods 

and generating capital internally 

through the retention of earnings.9 For 

these reasons, and consistent with 

comments received, in the final rule the 

Board established an implementation 

date for the new limits of March 31, 

2009, to allow BHCs to transition to the 

new limits. 

In light of conditions in the capital 

markets, the Board has considered 

whether an additional extension of the 

implementation date of the new limits 

is appropriate. The economic conditions 

for the past 18 months, and currently, 

have created a situation in which 

requiring adherence to the new limits by 

the March 31, 2009, implementation 

date creates a substantial burden for 

many BHCs in a way that was not 

anticipated when the final rule was 

adopted in 2005. In the prevailing 

market conditions, it is especially 

important for BHCs to expend efforts to 

increase their overall capital levels, 

although it is challenging to do so now 

through retention of earnings, the most 

typical means. Therefore, to promote 

stability in the financial markets and the 

banking industry as a whole, the Board 

has decided to further delay the 

implementation date of the new limits 

until March 31, 2011. The Board 

believes that this extended transition 

period would allow affected BHCs 

sufficient flexibility to satisfy the 

Board’s risk-based and leverage capital 

guidelines during the current stressed 

market conditions.10

The Board notes that the new limits 

apply only to regulatory capital 

calculations and do not affect the ability 

of restricted core capital instruments to 

absorb losses. However, as a general 

matter and in light of the Board’s 

continuing interest in assuring the 

appropriate regulatory capital treatment 

of trust preferred securities (and other 

restricted core capital elements), 

institutions that intend to issue new 

restricted core capital instruments 

should consult with appropriate Reserve 

Bank and Board staff prior to issuance. 

Administrative Procedure Act 

Pursuant to sections 553(b) and (d) of 

the Administrative Procedure Act (APA) 

(5 U.S.C. 553(b) and (d)), the Board 

finds that there is good cause for 

delaying the implementation date of the 

final rule, and that it is impracticable, 

unnecessary, or contrary to the public 

interest to issue a notice of proposed 

rulemaking and provide an opportunity 

to comment before the implementation 

date. The Board has adopted the rule in 

light of, and to help address, the 

potential adverse effects of imposing 

new regulatory capital restrictions, the 

continuing stressed market conditions, 

and BHCs’ efforts to increase their 

overall capital levels. Because the 

implementation date of the final rule 

(March 31, 2009) is imminent, it is 

impracticable to seek further public 

comment before issuing this amendment 

to the final rule delaying the 

implementation date of the new limits. 

In addition, the delay will further the 

Board’s efforts, as well as the efforts of 


dwashington3 on PROD1PC60 with RULES
12078 Federal Register / Vol. 74, No. 54 / Monday, March 23, 2009 / Rules and Regulations 

11 69 FR 28856 (May 19, 2004). 

12 70 FR 11834 (March 10, 2005). 

the other Federal banking agencies and 

Treasury, to respond to the current 

financial situation. 

Regulatory Flexibility Act 

Under section 604 of the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 604), a 

final regulatory flexibility analysis is 

required only for notice-and-comment 

rulemakings conducted under section 

553 of the APA. Since the Board finds 

that there is ‘‘good cause’’ under the 

APA for not proceeding with noticeand-comment rulemaking for this 

amendment to the implementation date 

for the final rule, the RFA does not 

require that a final regulatory flexibility 

analysis be provided for this 

amendment. 

The Board provided regulatory 

flexibility analysis in the preamble to 

the final rule published on March 10, 

2005 (70 FR 11827–11838). In that 

regulatory flexibility analysis, the Board 

considered the likely impact of the final 

rule on small entities and determined 

that the final rule will not have a 

significant impact on a substantial 

number of small entities. 

Paperwork Reduction Act 

In accordance with the requirements 

of the Paperwork Reduction Act of 1995 

(44 U.S.C. 3506), the Board has 

reviewed this rule to assess any 

information collections. There are no 

collections of information as defined by 

the Paperwork Reduction Act in this 

rule. 

Solicitation of Comments on Use of 

Plain Language 

Section 722 of the Gramm-LeachBliley Act, Public Law 106–102, 

requires the Federal banking agencies to 

use plain language in all proposed and 

final rules published after January 1, 

2000. The Board invited comment on 

how to make the final rule easier to 

understand.11 No commenter indicated 

that the proposed rule should be revised 

to make it easier to understand. In the 

preamble to the final rule the Board 

indicated that it believes the final rule 

is written plainly and clearly.12

List of Subjects in 12 CFR Part 225 

Administrative Practice and 

Procedure, Banks, Banking, Federal 

Reserve System, Holding companies, 

Reporting and recordkeeping 

requirements, Securities. 

Board of Governors of the Federal 

Reserve System 

12 CFR Chapter II 

Authority and Issuance 

■ For the reasons stated in the preamble, 

the Board of Governors of the Federal 

Reserve System amends part 225 of 

chapter II of title 12 of the Code of 

Federal Regulations as follows: 

PART 225—BANK HOLDING 

COMPANIES AND CHANGE IN BANK 

CONTROL (REGULATION Y) 

■ 1. The authority citation for part 225 

continues to read as follows: 

Authority: 12 U.S.C. 1817(j)(13), 1818, 

1828(o), 1831i, 1831p–1, 1843(c)(8), 1844(b), 

1972(1), 3106, 3108, 3310, 3331–3351, 3907, 

and 3909; 15 U.S.C. 6801 and 6805. 

Appendix A to Part 225 [Amended] 

■ 2. In Appendix A to part 225, 

paragraphs II.A.1.b.ii. and II.A.2.d.iv. 

are amended by removing ‘‘2009’’ and 

adding ‘‘2011’’ in its place wherever it 

appears. 

By order of the Board of Governors of the 

Federal Reserve System, March 16, 2009. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. E9–6096 Filed 3–20–09; 8:45 am] 

BILLING CODE 6210–02–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 370 

RIN 3064–AD37 

Amendment of the Temporary Liquidity 

Guarantee Program To Extend the 

Debt Guarantee Program and To 

Impose Surcharges on Assessments 

for Certain Debt Issued on or After 

April 1, 2009 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Interim Rule with request for 

comments. 

SUMMARY: The FDIC is issuing this 

Interim Rule to amend the Temporary 

Liquidity Guarantee Program (TLGP) by 

providing a limited extension of the 

Debt Guarantee Program (DGP) for 

insured depository institutions (IDIs) 

participating in the DGP. The extended 

DGP also would apply to other 

participating entities; however, other 

participating entities that have not 

issued FDIC-guaranteed debt before 

April 1, 2009 are required to submit an 

application to and obtain approval from 

the FDIC to participate in the extended 

DGP. The Interim Rule imposes 

surcharges on certain debt issued on or 

after April 1, 2009. Any surcharge 

collected will be deposited into the 

Deposit Insurance Fund (DIF or Fund). 

The Interim Rule also establishes an 

application process whereby entities 

participating in the extended DGP may 

apply to issue non-FDIC-guaranteed 

debt during the extension period. 

DATES: The Interim Rule becomes 

effective on March 23, 2009. Comments 

on the Interim Rule must be received by 

April 7, 2009. 

ADDRESSES: You may submit comments 

on the Interim Rule by any of the 

following methods: 

• Agency Web Site: http:// 

www.FDIC.gov/regulations/laws/ 

federal/notices.html. Follow 

instructions for submitting comments 

on the Agency Web Site. 

• E-mail: Comments@FDIC.gov. 

Include RIN # 3064–AD37 on the 

subject line of the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments, Federal 

Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429. 

• Hand Delivery: Comments may be 

hand delivered to the guard station at 

the rear of the 550 17th Street Building 

(located on F Street) on business days 

between 7 a.m. and 5 p.m. 

Instructions: All comments received 

will be posted generally without change 

to http://www.fdic.gov/regulations/laws/ 

federal/propose.html, including any 

personal information provided. 

FOR FURTHER INFORMATION CONTACT: 

Mark L. Handzlik, Senior Attorney, 

Legal Division, (202) 898–3990 or 

mhandzlik@fdic.gov; Robert C. Fick, 

Counsel, Legal Division, (202) 898–8962 

or rfick@fdic.gov; A. Ann Johnson, 

Counsel, Legal Division, (202) 898–3573 

or aajohnson@fdic.gov; (for questions or 

comments related to applications) Lisa 

D Arquette, Associate Director, Division 

of Supervision and Consumer 

Protection, (202) 898–8633 or 

larquette@fdic.gov; Serena L. Owens, 

Associate Director, Supervision and 

Applications Branch, Division of 

Supervision and Consumer Protection, 

(202) 898–8996 or sowens@fdic.gov; Gail 

Patelunas, Deputy Director, Division of 

Resolutions and Receiverships, (202) 

898–6779 or gpatelunas@fdic.gov; 

Donna Saulnier, Manager, Assessment 

Policy Section, Division of Finance, 

(703) 562–6167 or dsaulnier@fdic.gov; 

or Munsell St. Clair, Chief, Bank and 

Regulatory Policy Section, Division of 

Insurance and Research, (202) 898–8967 

or mstclair@fdic.gov. 

SUPPLEMENTARY INFORMATION: 


dwashington3 on PROD1PC60 with RULES