51250 Federal Register / Vol. 70, No. 167 / Tuesday, August 30, 2005 / Rules and Regulations 

SBA’s List of Qualified Base Closure 

Areas (located at http://www.sba.gov/ 

hubzone) to verify that the location is 

within a qualified base closure area. If 

a concern disagrees with the failure of 

SBA’s List of Qualified Base Closure 

Areas to include a particular area as a 

qualified base closure area, then the 

concern must submit relevant 

documentation from the Department of 

Defense, Office of Economic 

Adjustment, or the military department 

responsible for closing that installation. 

* * * * * 

■ 12. Revise § 126.306 as follows: 

§ 126.306 How will SBA process this 

certification? 

(a) The AA/HUB or designee is 

authorized to approve or decline 

certifications. * * * The decision of the 

AA/HUB or designee is the final agency 

decision. 

■ 13. Revise § 126.503(c) as follows: 

§ 126.503 What happens if SBA is unable 

to verify a qualified HUBZone SBC’s 

eligibility or determines that the concern is 

no longer eligible for the program? 

* * * * * 

(c) Decertifying Pursuant to a Protest. 

SBA will decertify a qualified HUBZone 

SBC and remove its name from the List 

without first proposing it for 

decertification if the AA/HUB upholds 

a protest pursuant to § 126.803 and the 

AA/HUB’s decision is not overturned 

pursuant to § 126.805. 

■ 14. Revise § 126.607(b) and (c) to read 

as follows: 

§ 126.607 When must a contracting officer 

set aside a requirement for qualified 

HUBZone SBCs? 

* * * * * 

(b) If the contracting officer 

determines that § 126.605 does not 

apply, the contracting officer shall set 

aside the requirement for HUBZone, 8(a) 

or SDVO SBC contracting before setting 

aside the requirement as a small 

business set-aside. 

(c) If the contracting officer decides to 

set aside the requirement for 

competition restricted to qualified 

HUBZone SBCs, the contracting officer 

must: 

(1) Have a reasonable expectation 

after reviewing SBA’s list of qualified 

HUBZone SBCs that at least two 

responsible qualified HUBZone SBCs 

will submit offers; and 

(2) Determine that award can be made 

at fair market price. 

■ 15. Amend § 126.613 to redesignate 

the current paragraph (c) as paragraph 

(d), and to add a new paragraph (c) to 

read as follows: 

§ 126.613 How does a price evaluation 

preference affect the bid of a qualified 

HUBZone SBC in full and open 

competition? 

* * * * * 

(c) For purchases by the Secretary of 

Agriculture of agricultural commodities 

for export operations through 

international food aid programs 

administered by the Farm Service 

Agency, the price evaluation preference 

shall be 5% on the first portion of a 

contract to be awarded that is not 

greater than 20% of the total volume 

being procured for each commodity in 

a single IFB. 

* * * * * 

■ 16. Revise § 126.700 to read as 

follows: 

§ 126.700 What are the performance of 

work requirements for HUBZone contracts? 

(a) A prime contractor receiving an 

award as a qualified HUBZone SBC 

must meet the performance of work 

requirements set forth in § 125.6(c) of 

this chapter. 

(b) In addition to the requirements set 

forth in § 125.6(c), one or more qualified 

HUBZone SBCs must spend at least 

50% of the cost of the contract incurred 

for personnel on its own employees or 

employees of other qualified HUBZone 

SBCs. 

(1) A qualified HUBZone SBC prime 

contractor receiving a HUBZone 

contract for general construction may 

meet this requirement itself by 

expending at least 50% of the cost of the 

contract incurred for personnel on its 

employees or it may subcontract at least 

35% of the cost of the contract 

performance incurred for personnel to 

one or more qualified HUBZone SBCs. 

A qualified HUBZone SBC prime 

contractor may not, however, 

subcontract more than 50% of the cost 

of the contract incurred for personnel to 

non-qualified HUBZone SBCs. 

(2) A qualified HUBZone SBC prime 

contractor receiving a HUBZone 

contract for specialty construction may 

meet this requirement itself by 

expending at least 50% of the cost of the 

contract incurred for personnel on its 

employees or it may subcontract at least 

25% of the cost of the contract 

performance incurred for personnel to 

one or more qualified HUBZone SBCs. 

A qualified HUBZone SBC prime 

contractor may not, however, 

subcontract more than 50% of the cost 

of the contract incurred for personnel to 

non-qualified HUBZone SBCs. 

(c) A contracting officer may waive 

the 50% requirement set forth in 

paragraph (b) of this section for a 

particular procurement after 

determining that at least two qualified 

HUBZone SBCs cannot meet the 

requirement. Where a waiver is granted, 

the qualified HUBZone SBC prime 

contractor must still meet the 

performance of work requirements set 

forth in § 125.6(c) of this chapter. 

Dated: June 17, 2005. 

Hector V. Barreto, 

Administrator. 

[FR Doc. 05–17206 Filed 8–29–05; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2005–21704; Airspace 

Docket No. 05–ACE–20] 

Modification of Class E Airspace; 

Newton, KS 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Direct final rule; confirmation of 

effective date. 

SUMMARY: This document confirms the 

effective date of the direct final rule 

which revises Class E airspace at 

Newton, KS. 

EFFECTIVE DATE: 0901 UTC, October 27, 

2005. 

FOR FURTHER INFORMATION CONTACT: 

Brenda Mumper, Air Traffic Division, 

Airspace Branch, ACE–520A, DOT 

Regional Headquarters Building, Federal 

Aviation Administration, 901 Locust, 

Kansas City, MO 64106; telephone: 

(816) 329–2524. 

SUPPLEMENTARY INFORMATION: The FAA 

published this direct final rule with a 

request for comments in the Federal 

Register on July 21, 2005 (70 FR 41949). 

The FAA uses the direct final 

rulemaking procedure for a noncontroversial rule where the FAA 

believes that there will be no adverse 

public comment. This direct final rule 

advised the public that no adverse 

comments were anticipated, and that 

unless a written adverse comment, or a 

written notice of intent to submit such 

an adverse comment, were received 

within the comment period, the 

regulation would become effective on 

October 27, 2005. No adverse comments 

were received, and thus this notice 

confirms that this direct final rule will 

become effective on that date. 

Federal Register / Vol. 70, No. 167 / Tuesday, August 30, 2005 / Rules and Regulations 51251 

Issued in Kansas City, MO on August 15, 

2005. 

Elizabeth S. Wallis, 

Acting Area Director, Western Flight Services 

Operations. 

[FR Doc. 05–17210 Filed 8–29–05; 8:45 am] 

BILLING CODE 4910–13–M 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 738, 742 and 744 

[Docket No. 050822227–5227–01] 

RIN A694–AD44 

Removal of License Requirements for 

Exports and Reexports to India of 

Items Controlled Unilaterally for 

Nuclear Nonproliferation Reasons and 

Removal of Certain Indian Entities 

From the Entity List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: On July 18, 2005, President 

George W. Bush and Indian Prime 

Minister Manmohan Singh announced 

the completion of the Next Steps in 

Strategic Partnership (NSSP) with India. 

The proposed cooperation outlined in 

the NSSP has progressed through a 

series of reciprocal steps that built on 

one another, including steps related to 

creating the appropriate environment 

for successful high-technology 

commerce. This rule implements two 

steps the United States has agreed to 

take as part of the final phase of NSSP, 

namely, the removal of license 

requirements for exports and reexports 

of items controlled unilaterally by the 

United States for nuclear 

nonproliferation reasons to India and 

the removal of six Indian entities from 

the Entity List. 

DATES: This rule is effective August 30, 

2005. 

FOR FURTHER INFORMATION CONTACT: 

Eileen M. Albanese, Office of Exporter 

Services, Bureau of Industry and 

Security, Telephone: (202) 482–0436. 

SUPPLEMENTARY INFORMATION: 

Background 

In November 2001, the Indian Prime 

Minister and the President of the United 

States committed India and the United 

States to a strategic partnership. Since 

then, the two countries have 

significantly strengthened bilateral 

cooperation and commerce in space, 

civil nuclear energy, and dual-use 

technology. On January 12, 2004, the 

two leaders announced the NSSP with 

the aim of implementing a shared vision 

to expand cooperation, deepening the 

ties of commerce and friendship 

between the two nations, and increasing 

stability in Asia and beyond. 

The proposed cooperation has 

progressed through a series of reciprocal 

steps that built on one another. It 

included expanded engagement on 

nuclear regulatory and safety issues and 

missile defense, ways to enhance 

cooperation regarding peaceful uses of 

space technology, and steps to create the 

appropriate environment for successful 

high-technology commerce. In bringing 

the NSSP to completion, the United 

States and India resolve to transform 

their relationship by establishing a 

global partnership, with the mutual 

commitment to promoting stability, 

democracy, prosperity, and peace 

throughout the world. This rule 

implements revisions to the Export 

Administration Regulations (EAR) as 

part of the completion of the NSSP. 

Effects of This Rule 

This rule removes export and reexport 

license requirements for items 

controlled unilaterally by the United 

States for nuclear nonproliferation 

reasons (i.e., items that are not subject 

to the Nuclear Suppliers Group regime). 

The rule accomplishes this change by 

revising § 742.3(a)(2) to except India 

from this license requirement and by 

removing the ‘‘X’’ from the box at the 

intersection of the row for India and the 

column labeled NP 2 of the Commerce 

Country Chart (Supplement No. 1 to 

Part 738 of the EAR). Removal of export 

license requirements for these items is 

expected to reduce the number of 

license applications for exports and 

reexports to India. 

This rule also removes six Indian 

entities from the Entity List 

(Supplement No. 4 to Part 744 of the 

EAR). Three of these entities are 

Department of Atomic Energy entities, 

‘‘Tarapur (TAPS 1 & 2),’’ ‘‘Rajasthan 

(RAPS 1& 2),’’ and ‘‘Kudankulam (1 & 

2).’’ TAPS 1 & 2 and RAPS 1 & 2 are 

under International Atomic Energy 

Agency (IAEA) safeguards. Kudankulam 

1 & 2 is under construction. The 

Government of India and the IAEA have 

agreed that this facility will be subject 

to IAEA safeguards upon completion. 

The other three entities are Indian Space 

Research Organization (ISRO) 

subordinate entities, specifically, ‘‘ISRO 

Telemetry, Tracking and Command 

Network (ISTRAC),’’ ‘‘ISRO Inertial 

Systems Unit (IISU), 

Thiruvananthapuram,’’ and ‘‘Space 

Applications Center (SAC), 

Ahmadabad.’’

Neither the removal of the unilateral 

nuclear nonproliferation license 

requirement nor the removal of the 

entities from the Entity List by this rule 

removes any other license requirements 

imposed by the EAR. Among others, the 

end use license requirements of part 

744, including the license requirements 

for the nuclear end uses specified in 

§§ 744.2, 744.5 and 744.6, and missile 

end use license requirements specified 

in §§ 744.3 and 744.6, continue to 

apply. This rule also does not affect 

license requirements related to entities 

that remain on the Entity List. For 

certain of those entities, a license is 

required for all items subject to the EAR; 

for others, a license is required for items 

with a classification other than (1) 

EAR99 or (2) where the third through 

fifth digits of the ECCN are ‘‘999.’’ BIS 

strongly urges parties to consult 

Supplement No. 3 to part 732 of the 

EAR, ‘‘BIS’s ‘‘Know Your Customer’’

Guidance and Red Flags,’’ when 

exporting or reexporting items to India. 

Although the Export Administration 

Act of 1979 (EAA), as amended, expired 

on August 20, 2001, Executive Order 

13222 of August 17, 2001 (3 CFR, 2001 

Comp., p. 783 (2002)) as extended by 

the Notice of August 2, 2005, 70 FR 

45273 (August 5, 2005), continues the 

EAR in effect under the International 

Emergency Economic Powers Act 

(IEEPA). 

Rulemaking Requirements 

1. This rule has been determined to be 

not significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to nor be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves collections previously 

approved by the OMB under control 

numbers 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 58 minutes to prepare 

and submit form BIS–748. 

Miscellaneous and recordkeeping 

activities account for 12 minutes per 

submission. Total burden hours 

associated with the Paperwork 

Reduction Act and Office and 

Management and Budget control 

number 0694–0088 are expected to 

decrease because of this regulation. BIS 

anticipates that this rule will reduce the 

number of license applications for