70220 Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / Rules and Regulations 

Seattle, WA; Corpus Christi, TX; and 

Gulfport, MS; Seattle-Tacoma 

International Airport, Seattle, WA; and 

Hartsfield-Atlanta International Airport, 

Atlanta, GA. 

* * * * * 

Done in Washington, DC, this 5th day of 

December 2007. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. E7–23944 Filed 12–10–07; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Rural Business—Cooperative Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Parts 1924 and 1944 

Rural Housing Service 

7 CFR Part 3550 

RIN 0575–AC65 

Thermal Standards 

AGENCY: Rural Housing Service, USDA. 

ACTION: Final rule. 

SUMMARY: The Rural Housing Service 

(Agency) is amending its regulations to 

be consistent with other Federal 

agencies. The current thermal standards 

for existing single family housing can 

impose an unnecessary financial burden 

on the borrower and are not always costeffective. Removing the thermal 

standards for existing single family 

housing will provide consistency with 

HUD. This change will not affect the 

thermal standards for new construction; 

such requirements are generally 

prescribed by adopted building and 

model energy codes. Construction 

materials and building techniques have 

improved tremendously during the last 

thirty years, creating many alternatives 

to achieve thermally efficient homes. 

Removing the Agency’s imposed 

thermal standards for existing single 

family housing will give a borrower the 

opportunity to allocate money towards 

other improvements which may result 

in higher cost savings. The rule will not 

result in any increase in costs or prices 

to consumers; non-profit organizations; 

businesses; Federal, State, or local 

government agencies; or geographic 

regions. 

DATES: Effective Date: January 10, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Michel Mitias, Technical Support 

Branch, Program Support Staff, Rural 

Housing Service, U.S. Department of 

Agriculture, STOP 0761, 1400 

Independence Avenue, SW., 

Washington, DC 20250–0761; 

Telephone: 202–720–9653; FAX: 202–

690–4335; E-mail: 

michel.mitias@wdc.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Classification 

This rule has been determined to be 

not significant for purposes of Executive 

Order 12866 and, therefore, has not 

been reviewed by the Office of 

Management and Budget (OMB). 

Civil Justice Reform 

In accordance with this rule: (1) All 

State and local laws and regulations that 

are in conflict with this rule will be 

preempted, (2) no retroactive effect will 

be given to this rule, and (3) 

administrative proceedings in 

accordance with 7 CFR part 11 must be 

exhausted before bringing suit in court 

challenging action taken under this rule, 

unless those regulations specifically 

allow bringing suit at an earlier time. 

Regulatory Flexibility Act 

The Administrator of the Agency has 

determined that this rule will not have 

a significant economic impact on a 

substantial number of small entities as 

defined in the Regulatory Flexibility Act 

(5 U.S.C. 601 et seq.). New provisions 

included in this rule will not impact a 

substantial number of small entities to 

a greater extent than large entities. 

Therefore, a regulatory flexibility 

analysis was not performed. 

Unfunded Mandates Reform Act 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995) for State, 

local, and tribal governments or the 

private sector. Thus, this rule is not 

subject to the requirements of sections 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

Environmental Impact Statement 

This document has been reviewed in 

accordance with 7 CFR part 1940, 

subpart G, ‘‘Environmental Program.’’

The Agency has determined that this 

action does not constitute a major 

Federal action significantly affecting the 

quality of the human environment, and, 

in accordance with the National 

Environmental Policy Act of 1969, 

Public Law 91–190, an Environmental 

Impact Statement is not required. 

Programs Affected 

The programs affected are listed in the 

Catalog of Federal Domestic Assistance 

under Number 10.410, Very Low to 

Moderate Income Housing Loans (Direct 

and Guaranteed/Insured). 

Federalism 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

National government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Nor does this rule 

impose substantial direct compliance 

costs on State and local governments. 

Therefore, consultation with the States 

is not required. 

Intergovernmental Review 

The Agency conducts 

intergovernmental consultation in the 

manner delineated in RD Instruction 

1940–J, ‘‘Intergovernmental Review of 

Rural Development Programs and 

Activities,’’ and in 7 CFR part 3015, 

subpart V. The Very Low to Moderate 

Income Housing Loans Program, 

Number 10.410, is not subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with State and local 

officials. An intergovernmental review 

for this revision is not required or 

applicable. 

Paperwork Reduction Act 

There are no new reporting and 

recordkeeping requirements associated 

with this rule. 

E-Government Act Compliance 

The Agency is committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes. For information pertinent to 

E–GOV compliance related to this final 

rule, please contact Michel Mitias, 202–

720–9653. 

Background 

The quality of construction, age, and 

condition of an existing dwelling 

financed through the Agency’s single 

family housing programs may have a 

significant impact on the unit’s thermal 

efficiency. The Agency should consider 

the thermal performance of a home as 

part of its overall condition, rather than 

a separate factor. 

Newer residences, or older residences 

currently in average or good condition, 

generally can be accepted as being 

representative of their community, and 


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Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / Rules and Regulations 70221 

are likely to have average thermal 

efficiency for the market in which they 

are located. These homes represent a 

typical residence in terms of overall 

design, construction, and appeal in the 

marketplace, and can be presumed to 

have reasonable, overall thermal 

performance. 

Aging residences, particularly those 

with significant deficiencies, or those 

designated as being in only fair 

condition or less could represent a 

higher risk to the borrower and the 

Agency. Homes with older effective ages 

or in fair condition may be financed in 

some circumstances with certain 

upgrades, but should be thoroughly and 

carefully inspected to insure the overall 

soundness of the collateral, including 

thermal components. These homes may 

require thermal and insulation upgrades 

in order to ensure reasonable (average) 

heating and cooling costs for borrowers. 

The Agency’s thermal standards for 

existing construction, or similar 

standard, may serve as a guide for an 

energy efficient home; however we 

recognize that incremental 

improvements to existing homes to 

reach this standard may not always be 

cost effective. The Agency should look 

at homes to be financed based on their 

overall condition. When a home needs 

improvement in order to be acceptable 

for our financing, the focus should be on 

reducing the effective age by improving 

the existing overall condition as well as 

increasing energy efficiency. 

A combination of Uniform Residential 

Appraisal Report (URAR) designations 

for ‘‘quality of construction’’ and 

‘‘condition’’, as well as ‘‘age’’ and 

‘‘effective age’’ may be used to judge the 

overall condition of a home, and 

whether additional analysis needs to be 

undertaken to ensure the dwelling will 

be reasonably thermally efficient for the 

market in which it is located. In 

addition, an on-site inspection by an 

Agency representative or designee may 

provide further information on the 

thermal performance of a home. Hence, 

the Agency has determined that it is no 

longer necessary to impose thermal 

standards for existing single family 

housing. 

This change will not be subject to 

Section 509(a) of the Housing Act of 

1949 because it pertains only to existing 

single family housing. All new single 

family housing construction must 

comply with the Minimum Property 

Standards (MPS) adopted by the 

Department of Housing and Urban 

Development (HUD), as well as national 

model codes adopted by the applicable 

jurisdiction, locality, or state. 

Comments on the Proposed Rule and 

Responses 

The Proposed Rule was published on 

May 16, 2007 [72 FR 27470–27471]. The 

Agency received a total of 51 comments. 

Only one comment was negative. A 

majority of the comments addressed the 

additional burden of thermal 

requirements for existing construction 

as a hindrance in the loan making 

process. Commenters also noted that 

these requirements did not increase the 

efficiency of the home significantly with 

the standards that have been in place 

over the last 20 years. A majority of the 

comments addressed the fact that more 

loans will be able to be provided to rural 

America by not imposing thermal 

standards on homes with materials and 

systems that have improved since this 

requirement was imposed. The general 

consensus is that the importance of 

energy efficient housing should be of 

utmost importance, but should not be a 

contingency upon which a home loan 

approval is determined. This goal can be 

met without imposing the existing 

thermal standards and can be 

accomplished by homebuyer education, 

as well as other government sponsored 

programs supporting energy efficient 

methods and systems. The end result 

will allow the Agency to provide more 

loans to eligible borrowers, while 

streamlining this process to conform to 

other government agencies. In general, 

the comments were very supportive of 

the proposed rule. 

The negative comment (Comment 

Reference RHS–07–SFH–0012–0004) 

mainly focused on the need for energy 

conservation and that this rule would 

not support this goal. There are other 

methods of energy conservation for 

existing construction that can be more 

beneficial to the borrowers than what 

the Agency has required. The Agency 

has added guidance to its Handbook 

that provides alternative methods and 

practices to achieve an energy efficient 

home. This was put into effect as an 

alternative to imposed thermal 

requirements on potential borrowers 

seeking Agency financing for existing 

housing. 

List of Subjects 

7 CFR Part 1924 

Agriculture, Construction 

management, Construction and repair, 

Energy conservation, Housing, Loan 

programs—Agriculture, Low and 

moderate income housing. 

7 CFR Part 1944 

Grant programs—Housing and 

community development, Home 

improvement, Rural housing, Nonprofit 

organizations, Loan programs—Housing 

and community development. 

7 CFR Part 3550 

Accounting, Grant programs—

Housing and community development, 

Housing, Loan programs—Housing and 

community development, Low and 

moderate income housing, 

Manufactured homes, Reporting and 

recordkeeping requirements, Rural 

areas, Subsidies. 

■ Accordingly, chapters XVIII and 

XXXV, title 7, of the Code of Federal 

Regulations are amended to read as 

follows: 

PART 1924—CONSTRUCTION AND 

REPAIR 

■ 1. The authority citation for part 1924 

continues to read as follows: 

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 

U.S.C. 1480. 

Subpart A—Planning and Performing 

Construction and Other Development 

■ 2. Exhibit D of subpart A is amended 

by: 

■ A. Removing the last sentence in 

paragraph II; 

■ B. Removing and reserving paragraph 

IV B; 

■ C. Revising the words ‘‘paragraphs IV 

A and IV B’’ in paragraph IV C 1 to read 

‘‘paragraph IV A’’; 

■ D. Revising the words ‘‘paragraphs IV 

A and B’’ in paragraph IV C 2 to read 

‘‘paragraph IV A’’; 

■ E. Revising the words ‘‘paragraphs IV 

A or B’’ in the first and last sentences 

of paragraph IV C 2b, and in paragraphs 

IV C 3 introductory text, IV C 3a and IV 

C 3b to read ‘‘paragraph IV A’’; and 

■ F. Removing the words ‘‘or B’’ in 

paragraphs IV C introductory text and 

IV C 3c. 

PART 1944—HOUSING 

■ 3. The authority citation for part 1944 

continues to read as follows: 

Authority: 5 U.S.C. 301; 42 U.S.C. 1480. 

Subpart N—Housing Preservation 

Grants 

§ 1944.656 [Amended] 

■ 4. Section 1944.656 is amended by: 

■ A. Revising the second sentence in the 

definition for ‘‘Housing preservation’’ to 

read ‘‘As a result of these activities, the 

overall condition of the unit or dwelling 

must be raised to meet Thermal 

Standards for existing structures 

adopted by the locality/jurisdiction and 

applicable development standards for 

existing housing recognized by RHS in 

subpart A of part 1924 or standards 


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70222 Federal Register / Vol. 72, No. 237 / Tuesday, December 11, 2007 / Rules and Regulations 

1Effective December 18, 2006, EPA revoked the 

annual PM–10 standard. 71 FR 61144 (October 17, 

2006). References to the annual standard in this 

proposed rule are for historical purposes only. EPA 

is not taking any regulatory action with regard to 

this former standard. 

contained in any of the voluntary 

national model codes acceptable upon 

review by RHS.’’

■ B. Revising the third sentence in the 

definition for ‘‘Replacement housing’’ to 

read ‘‘The overall condition of the unit 

or dwelling must meet Thermal 

Standards adopted by the locality/ 

jurisdiction for new or existing 

structures and applicable development 

standards for new or existing housing 

recognized by RHS in subpart A of part 

1924 or standards contained in any of 

the voluntary national model codes 

acceptable upon review by RHS.’’

PART 3550—DIRECT SINGLE FAMLY 

HOUSING LOANS AND GRANTS 

■ 5. The authority citation for part 3550 

continues to read as follows: 

Authority: 5 U.S.C. 301; 42 U.S.C. 1480. 

Subpart B—Section 502 Origination 

§ 3550.57 [Amended] 

■ 6. Section 3550.57(c) is amended by 

adding the word ‘‘and’’ after the word 

‘‘systems;’’ and by removing ‘‘and meet 

the thermal performance requirements 

for existing dwellings of 7 CFR part 

1924, subpart A’’. 

Subpart C—Section 504 Origination 

and Section 306C Water and Waste 

Disposal Grants 

§ 3550.106 [Amended] 

■ 7. Section 3550.106(b) is amended by 

removing the words ‘‘or thermal 

performance standards’’. 

Dated: November 28, 2007. 

Russell T. Davis, 

Administrator, Rural Housing Service. 

[FR Doc. 07–6009 Filed 12–10–07; 8:45 am] 

BILLING CODE 3410–XV–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 68 

Provision of Free Public Education for 

Eligible Children Pursuant to Section 

6, Public Law 81–874 

AGENCY: Department of Defense. 

ACTION: Final rule. 

SUMMARY: The Department of Defense is 

removing 32 CFR Part 68, ‘‘Provision of 

Free Public Education for Eligible 

Children Pursuant to Section 6, Public 

Law 81–874.’’ The part has served the 

purpose for which it was intended and 

is no longer valid. 

DATES: Effective Date: December 11, 

2007. 

FOR FURTHER INFORMATION CONTACT: L.M. 

Bynum, 703–696–4970. 

SUPPLEMENTARY INFORMATION: DoD 

Directive 1342.16 was originally 

codified as 32 CFR Part 68. This 

Directive was canceled by DoD Directive 

1342.20. Copies of DoD Directive 

1342.20 may be obtained at http:// 

www.dtic.mil/whs/directives/. 

List of Subject in 32 CFR Part 68 

Elementary and secondary education, 

Government employees, Military 

personnel. 

■ Accordingly, by the authority of 10 

U.S.C. 301, title 32 of the Code of 

Federal Regulations is amended by 

removing part 68: 

PART 68—[REMOVED] 

Dated: December 5, 2007. 

L.M. Bynum, 

Alternate OSD Federal Register Liaison 

Officer, DoD. 

[FR Doc. 07–6006 Filed 12–10–07; 8:45 am] 

BILLING CODE 5001–06–M 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 81 

[EPA–R09–OAR–2005–CA–0017; FRL–

8504–2] 

Finding of Failure To Attain; 

California—Imperial Valley 

Nonattainment Area; PM–10 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: EPA is finding that the 

Imperial Valley serious PM–10 

nonattainment area did not attain the 

24-hour particulate matter (PM–10) 

National Ambient Air Quality Standard 

(NAAQS) by the deadline mandated in 

the Clean Air Act (CAA), December 31, 

2001. In response to this finding, the 

State of California must submit a 

revision to the California State 

Implementation Plan (SIP) that provides 

for attainment of the PM–10 standard in 

the Imperial Valley area and at least five 

percent annual reductions in PM–10 or 

PM–10 precursor emissions until 

attainment as required by CAA section 

189(d). The State must submit the SIP 

revision by December 11, 2008. 

DATES: Effective Date: This finding is 

effective on January 10, 2008. 

ADDRESSES: EPA has established docket 

number EPA–R09–OAR–2006–0583 for 

this action. The index to the docket is 

available electronically at http:// 

www.regulations.gov and in hard copy 

at U.S. Environmental Protection 

Agency Region IX, 75 Hawthorne Street, 

San Francisco, CA 94105–3901. While 

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 not be publicly available in 

either location (e.g., Confidential 

Business Information). To inspect the 

hard copy materials, please schedule an 

appointment during normal business 

hours with the contact listed in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: 

Adrienne Priselac, EPA Region IX, (415) 

972–3285, priselac.adrienne@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document ‘‘we,’’ ‘‘us,’’

and ‘‘our’’ refer to EPA. 

I. Background 

On August 11, 2004, EPA reclassified 

under the Clean Air Act (CAA or the 

Act) the Imperial Valley PM–10 

nonattainment area (Imperial area) from 

moderate to serious in response to the 

opinion of the U.S. Court of Appeals for 

the Ninth Circuit in Sierra Club v. 

United States Environmental Protection 

Agency, et al., 346 F.3d 955 (9th Cir. 

2003), amended 352 F.3d 1186, cert. 

denied, 542 U.S. 919 (2004). See 69 FR 

48792 (August 11, 2004). 

Also on August 11, 2004 (69 FR 

48835), EPA proposed to find under the 

CAA that the Imperial area failed to 

attain the annual 1 and 24-hour PM–10 

standards by the serious area deadline 

of December 31, 2001. Our proposed 

finding of failure to attain was based on 

monitored air quality data for the PM–

10 NAAQS from January 1999 through 

December 2001. A summary of these 

data was provided in the proposed rule 

and is not reproduced here. 

EPA has the responsibility, pursuant 

to sections 179(c) and 188(b)(2) of the 

Act, of determining within 6 months of 

the applicable attainment date (i.e., June 

30, 2002), whether the Imperial area 

attained the PM–10 NAAQS. Because 

the June 30, 2002 date has passed, EPA 

is required to make that determination 

as soon as practicable. Delaney v. EPA, 

898 F.2d 687 (9th Cir. 1990). 

Section 179(c)(1) of the Act provides 

that attainment determinations are to be 

based upon an area’s ‘‘air quality as of 


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