22812 Federal Register / Vol. 87, No. 74 / Monday, April 18, 2022 / Rules and Regulations 

6 44 U.S.C. 3506; see 5 CFR part 1320, appendix 

A.1. 3The primary, secondary, and seasonal credit 

rates described in this section apply to both 

advances and discounts made under the primary, 

secondary, and seasonal credit programs, 

respectively. 

1 12 U.S.C. 461(b). In March 2020, the Board set 

all reserve requirement ratios to zero percent. See 

Interim Final Rule, 85 FR16525 (Mar. 24, 2020); 

Final Rule, 86 FR 8853 (Feb. 10, 2021). 

2 12 CFR 204.5(a)(1). 

3 12 U.S.C. 461(b)(1)(A) & (b)(12)(A). 

4See 12 U.S.C. 461(b)(1)(A) & (b)(12)(C); see also 

12 CFR 204.2(y). 

5See 12 U.S.C. 461(b)(12)(B). 

6See 12 CFR 204.10(b)(1). 

7 5 U.S.C. 551 et seq. 

8 5 U.S.C. 553(b)(3)(A). 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (‘‘PRA’’) of 1995,6 the 

Board reviewed the final rule under the 

authority delegated to the Board by the 

Office of Management and Budget. The 

final rule contains no requirements 

subject to the PRA. 

List of Subjects in 12 CFR Part 201 

Banks, Banking, Federal Reserve 

System, Reporting and recordkeeping. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Board is amending 12 

CFR chapter II to read as follows: 

PART 201—EXTENSIONS OF CREDIT 

BY FEDERAL RESERVE BANKS 

(REGULATION A) 

■ 1. The authority citation for part 201 

continues to read as follows: 

Authority: 12 U.S.C. 248(i)–(j), 343 et seq., 

347a, 347b, 347c, 348 et seq., 357, 374, 374a, 

and 461. 

■ 2. In § 201.51, paragraphs (a) and (b) 

are revised to read as follows: 

§ 201.51 Interest rates applicable to credit 

extended by a Federal Reserve Bank.3

(a) Primary credit. The interest rate at 

each Federal Reserve Bank for primary 

credit provided to depository 

institutions under § 201.4(a) is 0.50 

percent. 

(b) Secondary credit. The interest rate 

at each Federal Reserve Bank for 

secondary credit provided to depository 

institutions under § 201.4(b) is 1.00 

percent. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2022–08254 Filed 4–15–22; 8:45 am] 

BILLING CODE P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Docket No. R–1768] 

RIN 7100–AG28 

Regulation D: Reserve Requirements 

of Depository Institutions 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (‘‘Board’’) has 

adopted final amendments to its 

regulations to revise the rate of interest 

paid on balances (‘‘IORB’’) maintained 

at Federal Reserve Banks by or on behalf 

of eligible institutions. The final 

amendments specify that IORB is 0.40 

percent, a 0.25 percentage point 

increase from its prior level. The 

amendment is intended to enhance the 

role of IORB in maintaining the federal 

funds rate in the target range established 

by the Federal Open Market Committee 

(‘‘FOMC’’ or ‘‘Committee’’). 

DATES: 

Effective date: The amendments to 

part 204 (Regulation D) are effective 

April 18, 2022. 

Applicability date: The IORB rate 

change was applicable on March 17, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

Sophia H. Allison, Senior Special 

Counsel (202–452–3565), Legal 

Division, or Francis Martinez, Lead 

Financial Institution & Policy Analyst 

(202–245–4217), or Laura Lipscomb, 

Deputy Associate Director (202–834– 

2979), Division of Monetary Affairs; for 

users of telephone systems via text 

telephone (TTY) or any TTY-based 

Telecommunications Relay Services 

(TRS), please call 711 from any 

telephone, anywhere in the United 

States; Board of Governors of the 

Federal Reserve System, 20th and C 

Streets NW, Washington, DC 20551. 

SUPPLEMENTARY INFORMATION: 

I. Statutory and Regulatory Background 

For monetary policy purposes, section 

19 of the Federal Reserve Act (‘‘Act’’) 

imposes reserve requirements on certain 

types of deposits and other liabilities of 

depository institutions.1 Regulation D, 

which implements section 19 of the Act, 

requires that a depository institution 

meet reserve requirements by holding 

cash in its vault, or if vault cash is 

insufficient, by maintaining a balance in 

an account at a Federal Reserve Bank 

(‘‘Reserve Bank’’).2 Section 19 also 

provides that balances maintained by or 

on behalf of certain institutions in an 

account at a Reserve Bank may receive 

earnings to be paid by the Reserve Bank 

at least once each quarter, at a rate or 

rates not to exceed the general level of 

short-term interest rates.3 Institutions 

that are eligible to receive earnings on 

their balances held at Reserve Banks 

(‘‘eligible institutions’’) include 

depository institutions and certain other 

institutions.4 Section 19 also provides 

that the Board may prescribe regulations 

concerning the payment of earnings on 

balances at a Reserve Bank.5 Prior to 

these amendments, Regulation D 

established IORB at 0.15 percent.6

II. Amendment to IORB 

The Board is amending § 204.10(b)(1) 

of Regulation D to establish IORB at 0.40 

percent. The amendment represents a 

0.25 percentage point increase in IORB. 

This decision was announced on March 

16, 2022, with an effective date of 

March 17, 2022, in the Federal Reserve 

Implementation Note that accompanied 

the FOMC’s statement on March 16, 

2022. The FOMC statement stated that 

the Committee decided to raise the 

target range for the federal funds rate to 

1⁄4 to 1⁄2 percent. 

A Federal Reserve Implementation 

note stated: 

The Board of Governors of the Federal 

Reserve System voted unanimously to raise 

the interest rate paid on reserve balances to 

0.4 percent, effective March 17, 2022. 

As a result, the Board is amending 

§ 204.10(b)(1) of Regulation D to 

establish IORB at 0.40 percent. 

III. Administrative Procedure Act 

In general, the Administrative 

Procedure Act (‘‘APA’’) 7 imposes three 

principal requirements when an agency 

promulgates legislative rules (rules 

made pursuant to Congressionallydelegated authority): (1) Publication 

with adequate notice of a proposed rule; 

(2) followed by a meaningful 

opportunity for the public to comment 

on the rule’s content; and (3) 

publication of the final rule not less 

than 30 days before its effective date. 

The APA provides that notice and 

comment procedures do not apply if the 

agency for good cause finds them to be 

‘‘unnecessary, impracticable, or contrary 

to the public interest.’’ 8 Section 553(d) 

of the APA also provides that 

publication at least 30 days prior to a 

rule’s effective date is not required for 

(1) a substantive rule which grants or 

recognizes an exemption or relieves a 

restriction; (2) interpretive rules and 

statements of policy; or (3) a rule for 

which the agency finds good cause for 


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Federal Register / Vol. 87, No. 74 / Monday, April 18, 2022 / Rules and Regulations 22813 

9 5 U.S.C. 553(d). 

10 5 U.S.C. 603, 604. 

11 44 U.S.C. 3506; see 5 CFR part 1320, appendix 

A.1. 

shortened notice and publishes its 

reasoning with the rule.9

The Board has determined that good 

cause exists for finding that the notice, 

public comment, and delayed effective 

date provisions of the APA are 

unnecessary, impracticable, or contrary 

to the public interest with respect to 

these final amendments to Regulation D. 

The rate change for IORB that is 

reflected in the final amendment to 

Regulation D was made with a view 

towards accommodating commerce and 

business and with regard to their 

bearing upon the general credit situation 

of the country. Notice and public 

comment would prevent the Board’s 

action from being effective as promptly 

as necessary in the public interest and 

would not otherwise serve any useful 

purpose. Notice, public comment, and a 

delayed effective date would create 

uncertainty about the finality and 

effectiveness of the Board’s action and 

undermine the effectiveness of that 

action. Accordingly, the Board has 

determined that good cause exists to 

dispense with the notice, public 

comment, and delayed effective date 

procedures of the APA with respect to 

this final amendment to Regulation D. 

IV. Regulatory Flexibility Analysis 

The Regulatory Flexibility Act 

(‘‘RFA’’) does not apply to a rulemaking 

where a general notice of proposed 

rulemaking is not required.10 As noted 

previously, the Board has determined 

that it is unnecessary and contrary to 

the public interest to publish a general 

notice of proposed rulemaking for this 

final rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

V. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (‘‘PRA’’) of 1995,11 the 

Board reviewed the final rule under the 

authority delegated to the Board by the 

Office of Management and Budget. The 

final rule contains no requirements 

subject to the PRA. 

List of Subjects in 12 CFR Part 204 

Banks, Banking, Reporting and 

recordkeeping requirements. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Board amends 12 CFR 

part 204 as follows: 

PART 204—RESERVE 

REQUIREMENTS OF DEPOSITORY 

INSTITUTIONS (REGULATION D) 

■ 1. The authority citation for part 204 

continues to read as follows: 

Authority: 12 U.S.C. 248(a), 248(c), 461, 

601, 611, and 3105. 

■ 2. Section 204.10 is amended by 

revising paragraph (b)(1) to read as 

follows: 

§ 204.10 Payment of interest on balances. 

* * * * * 

(b) * * * 

(1) For balances maintained in an 

eligible institution’s master account, 

interest is the amount equal to the 

interest on reserve balances rate (‘‘IORB 

rate’’) on a day multiplied by the total 

balances maintained on that day. The 

IORB rate is 0.40 percent. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann E. Misback, 

Secretary of the Board. 

[FR Doc. 2022–08255 Filed 4–15–22; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2022–0283] 

RIN 1625–AA00 

Safety Zone; Waters Surrounding F/V 

American Challenger, Bodega Bay, CA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

navigable waters within a 100-foot 

radius of F/V American Challenger and 

a 100-yard radius of salvage vessels, 

machinery, and personnel when 

present. The safety zone is needed to 

protect personnel, vessels, and the 

marine environment from potential 

hazards created by salvage work on the 

F/V American Challenger. Entry of 

vessels or persons into this zone is 

prohibited unless specifically 

authorized by the Captain of the Port 

San Francisco. 

DATES: This rule is effective without 

actual notice from April 18, 2022 

through 11:59 p.m. on July 31, 2022. For 

purposes of enforcement, actual notice 

will be used from April 13, 2022 until 

April 18, 2022. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2022– 

0283 in the search box and click 

‘‘Search.’’ Next, in the Document Type 

column, select ‘‘Supporting & Related 

Material.’’ 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email LTJG William K. Harris, Sector 

San Francisco Waterways Management 

Division, U.S. Coast Guard; telephone 

415–399–7443, email SFWaterways@

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 

publishing an NPRM would be 

impracticable. The complex and large 

scale salvage operations to the F/V 

American Challenger require immediate 

action to respond to the potential safety 

hazards associated with large scale 

salvage operations. It is impracticable to 

publish an NPRM because we must 

establish this safety zone by April 18, 

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 contrary to the public 

interest because immediate action is 

needed to respond to the potential 

safety hazards associated with salvage 

operations to the F/V American 

Challenger. 

III. Legal Authority and Need for Rule 

The Coast Guard is issuing this rule 

under authority in 46 U.S.C. 70034 

(previously 33 U.S.C. 1231). The 


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