Federal Register / Vol. 75, No. 110 / Wednesday, June 9, 2010 / Rules and Regulations 32661 

may be considered by the Commissioner 

is the use of the remedial allocation 

method by related partners in which 

allocations of remedial items of income, 

gain, loss or deduction are made to one 

partner and the allocations of offsetting 

remedial items are made to a related 

partner. 

* * * * * 

(10) Anti-abuse rule—(i) In general. 

An allocation method (or combination 

of methods) is not reasonable if the 

contribution of property (or event that 

results in reverse section 704(c) 

allocations) and the corresponding 

allocation of tax items with respect to 

the property are made with a view to 

shifting the tax consequences of built-in 

gain or loss among the partners in a 

manner that substantially reduces the 

present value of the partners’ aggregate 

tax liability. For purposes of this 

paragraph (a)(10), all references to the 

partners shall include both direct and 

indirect partners. 

(ii) Definition of indirect partner. An 

indirect partner is any direct or indirect 

owner of a partnership, S corporation, 

or controlled foreign corporation (as 

defined in section 957(a) or 953(c)), or 

direct or indirect beneficiary of a trust 

or estate, that is a partner in the 

partnership, and any consolidated group 

of which the partner in the partnership 

is a member (within the meaning of 

§ 1.1502–1(h)). An owner (whether 

directly or through tiers of entities) of a 

controlled foreign corporation is treated 

as an indirect partner only with respect 

to allocations of items of income, gain, 

loss, or deduction that enter into the 

computation of a United States 

shareholder’s inclusion under section 

951(a) with respect to the controlled 

foreign corporation, enter into any 

person’s income attributable to a United 

States shareholder’s inclusion under 

section 951(a) with respect to the 

controlled foreign corporation, or would 

enter into the computations described in 

this sentence if such items were 

allocated to the controlled foreign 

corporation. 

* * * * * 

(f) Effective/Applicability Dates. With 

the exception of paragraphs (a)(1), 

(a)(8)(ii), (a)(8)(iii), (a)(10), and (a)(11) of 

this section, this section applies to 

properties contributed to a partnership 

and to restatements pursuant to § 1.704– 

1(b)(2)(iv)(f) on or after December 21, 

1993. * * * Paragraphs (a)(1) and 

(a)(10) of this section are applicable for 

taxable years beginning after June 9, 

2010. 

Approved: May 28, 2010. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–13790 Filed 6–8–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2010–0435] 

RIN 1625–AA08 

Special Local Regulation; Hydroplane 

Exhibition, Detroit River, Detroit, MI 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard will enforce 

a temporary special local regulation on 

the Detroit River, Detroit, Michigan from 

June 18, 2010 to June 20, 2010. This 

special local regulation is intended to 

restrict vessels from portions of the 

Detroit River during the Hydroplane 

Exhibition. This special local regulation 

is necessary to protect spectators and 

vessels from the hazards associated with 

powerboat races. 

DATES: This regulation is effective from 

3 p.m. on June 18, 2010, to 5 p.m. on 

June 20, 2010. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket are part of docket USCG–2010– 

0435 and are available online by going 

to http://www.regulations.gov, inserting 

USCG–2010–0435 in the ‘‘Keyword’’ 

box, and then clicking ‘‘Search.’’ They 

are also available for inspection or 

copying at the Docket Management 

Facility (M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this temporary 

rule, call or e-mail CDR Joseph 

Snowden, Prevention Department, 

Sector Detroit, Coast Guard; telephone 

(313) 568–9508, e-mail 

Joseph.H.Snowden@uscg.mil. If you 

have questions on viewing the docket, 

call Renee V. Wright, Program Manager, 

Docket Operations, telephone 

(202) 366–9826. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

The Coast Guard is issuing this 

temporary final 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 the 

permit application for the Hydroplane 

Exhibition event was not received by 

the Coast Guard in time to publish an 

NPRM followed by a final rule before 

the effective date. Delaying this rule 

would be contrary to the public interest 

of ensuring the safety of vessels during 

the race, and immediate action is 

necessary to prevent possible loss of life 

and property. The Coast Guard has not 

received any complaints or negative 

comments previously with regard to 

events of this type and duration. 

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 this rule would be 

contrary to the public interest of 

ensuring the safety of vessels during the 

construction, and immediate action is 

necessary to prevent possible loss of life 

and property. The Coast Guard has not 

received any complaints or negative 

comments previously with regard to 

events of this type and duration. 

Background and Purpose 

This temporary special local 

regulation is necessary to ensure the 

safety of vessels and spectators from 

hazards associated with a powerboat 

race. The Captain of the Port Detroit has 

determined that powerboat races in 

close proximity to watercraft and 

waterfront structures pose a significant 

risk to public safety and property. The 

likely combination of large numbers of 

recreational vessels, powerboats 

traveling at high speeds, and large 

numbers of spectators in close 

proximity to powerboats on the water 

pose a significant risk of serious injuries 

or fatalities. Establishing a special local 

regulation around the location of the 

race course will help ensure the safety 

of persons and property at these events 

and help minimize the associated risks. 


erowe on DSK5CLS3C1PROD with RULES
32662 Federal Register / Vol. 75, No. 110 / Wednesday, June 9, 2010 / Rules and Regulations 

Discussion of Rule 

This temporary special local 

regulation is necessary to ensure the 

safety of spectators and vessels during 

the Hydroplane Exhibition scheduled to 

take place during the Detroit River Days 

Festival. The Hydroplane Exhibition 

will occur between 3 p.m. and 5 p.m. on 

a daily basis on from June 18, 2010 to 

June 20, 2010. This regulation is 

effective from 3 p.m. on June 18, 2010, 

to 5 p.m. on June 20, 2010 and will be 

enforced daily between 3 p.m. to 5 p.m. 

during the effective period. 

The area of the special local 

regulation will encompass all waters of 

the Detroit River, between Detroit, MI 

and Belle Isle, within an area bound on 

the east by a by a point on land at 

position 42°20.1′ N; 083°1.1′ W 

extending to the international border 

located at position 42°19.9′ N; 

083°1.0′ W and a line running along the 

international border to position 

42°19.5′ N; 083°2.2′ W and to a point on 

land at position 42°19.7′ N; 083°2.4′ W. 

All geographic coordinates are North 

American Datum of 1983 [NAD 83]. 

All persons and vessels shall comply 

with the instructions of the Captain of 

the Port Sector Detroit or designated on 

scene patrol personnel. Entry into, 

transiting, or anchoring within the 

special local regulation area is 

prohibited unless authorized by the 

Captain of the Port Detroit or his 

designated on scene representative. The 

Captain of the Port or his designated on 

scene representative may be contacted 

via VHF Channel 16. 

Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

executive orders related to rulemaking. 

Below we summarize our analyses 

based on 13 of these statutes or 

executive orders. 

Regulatory Planning and Review 

This rule is not a significant 

regulatory action under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review, and does not 

require an assessment of potential costs 

and benefits under section 6(a)(3) of that 

Order. The Office of Management and 

Budget has not reviewed it under that 

Order. It is not ‘‘significant’’ under the 

regulatory policies and procedures of 

the Department of Homeland Security 

(DHS). 

We expect the economic impact of 

this rule to be so minimal that a full 

Regulatory Evaluation under the 

regulatory policies and procedures of 

DHS is unnecessary. 

This determination is based on the 

minimal time that vessels will be 

restricted from the area of the special 

local regulation. 

Small Entities 

Under the Regulatory Flexibility Act 

(5 U.S.C. 601–612), we have considered 

whether this rule would have a 

significant economic impact on a 

substantial number of small entities. 

The term ‘‘small entities’’ comprises 

small businesses, not-for-profit 

organizations that are independently 

owned and operated and are not 

dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. 

The Coast Guard certifies under 5 

U.S.C. 605(b) that this rule will not have 

a significant economic impact on a 

substantial number of small entities. 

This rule will affect the following 

entities, some of which might be small 

entities: The owners and operators of 

vessels intending to transit or anchor in 

a portion of the Detroit River near 

Detroit, MI between 3 p.m. and 5 p.m. 

from June 18, 2010 to June 20, 2010. 

This special local regulation will not 

have a significant economic impact on 

a substantial number of small entities 

for the following reasons: This rule will 

only be in effect for 2 hours a day 

during the effective dates that this rule 

will be enforced. The Coast Guard will 

give notice to the public via a Broadcast 

Notice to Mariners that the regulation is 

in effect. 

Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121), 

we offer to assist small entities in 

understanding the rule so that they can 

better evaluate its effects on them and 

participate in the rulemaking process. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 1– 

888–REG–FAIR (1–888–734–3247). The 

Coast Guard will not retaliate against 

small entities that question or complain 

about this rule or any policy or action 

of the Coast Guard. 

Collection of Information 

This rule calls for no new collection 

of information under the Paperwork 

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

3520). 

Federalism 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect on State or local governments and 

would either preempt State law or 

impose a substantial direct cost of 

compliance on them. We have analyzed 

this rule under that Order and have 

determined that it does not have 

implications for federalism. 

Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 (adjusted for inflation) or 

more in any one year. Though this rule 

will not result in such expenditure, we 

do discuss the effects of this rule 

elsewhere in this preamble. 

Taking of Private Property 

This rule will not cause a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630, Governmental Actions and 

Interference with Constitutionally 

Protected Property Rights. 

Civil Justice Reform 

This rule meets applicable standards 

in sections 3(a) and 3(b)(2) of Executive 

Order 12988, Civil Justice Reform, to 

minimize litigation, eliminate 

ambiguity, and reduce burden. 

Protection of Children 

We have analyzed this rule under 

Executive Order 13045, Protection of 

Children from Environmental Health 

Risks and Safety Risks. This rule is not 

an economically significant rule and 

does not create an environmental risk to 

health or risk to safety that may 

disproportionately affect children. 

Indian Tribal Governments 

This rule does not have tribal 

implications under Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, 

because it does not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 


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Federal Register / Vol. 75, No. 110 / Wednesday, June 9, 2010 / Rules and Regulations 32663 

Energy Effects 

We have analyzed this rule under 

Executive Order 13211, Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use. We have 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it is not a ‘‘significant regulatory action’’ 

under Executive Order 12866 and is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. The Administrator of the Office 

of Information and Regulatory Affairs 

has not designated it as a significant 

energy action. Therefore, it does not 

require a Statement of Energy Effects 

under Executive Order 13211. 

Technical Standards 

The National Technology Transfer 

and Advancement Act (NTTAA) (15 

U.S.C. 272 note) directs agencies to use 

voluntary consensus standards in their 

regulatory activities unless the agency 

provides Congress, through the Office of 

Management and Budget, with an 

explanation of why using these 

standards would be inconsistent with 

applicable law or otherwise impractical. 

Voluntary consensus standards are 

technical standards (e.g., specifications 

of materials, performance, design, or 

operation; test methods; sampling 

procedures; and related management 

systems practices) that are developed or 

adopted by voluntary consensus 

standards bodies. 

This rule does not use technical 

standards. Therefore, we did not 

consider the use of voluntary consensus 

standards. 

Environment 

We have analyzed this rule under 

Department of Homeland Security 

Management Directive 023–01 and 

Commandant Instruction M16475.lD, 

which guide the Coast Guard in 

complying with the National 

Environmental Policy Act of 1969 

(NEPA) (42 U.S.C. 4321–4370f), and 

have concluded that this action is one 

of a category of actions that do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule is categorically 

excluded, under figure 2–1, paragraph 

(34)(h) of the Instruction, because it 

involves the establishment of a special 

local regulation for a marine event in 

which an environmental analysis was 

conducted as part of the permit process 

for the marine event. An environmental 

analysis checklist and a categorical 

exclusion determination are available in 

the docket where indicated under 

ADDRESSES. 

List of Subjects in 33 CFR Part 100 

Marine Safety, Navigation (water), 

Reporting and Recordkeeping 

requirements, Waterways. 

■ For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR Part 100 as follows: 

PART 100—SAFETY OF LIFE ON 

NAVIGABLE WATERS 

■ 1. The authority citation for part 100 

continues to read as follows: 

Authority: 33 U.S.C. 1233. 

■ 2. A new temporary § 100.T09–0435 is 

added to read as follows: 

§ 100.T09–0435 Special Local Regulation; 

Hydroplane Exhibition; Detroit River; 

Detroit, MI. 

(a) Location. The following is a 

temporary special local regulation area: 

All waters of the Detroit River, between 

Detroit, MI. and Belle Isle, within an 

area bound on the east by a point on 

land at position 42°20.1′ N.; 083°01.1′ 

W. extending to the international border 

located at position 42°19.9′ N.; 083°01.0′ 

W. and a line running along the 

international border to position 42°19.5′ 

N.; 083°02.2′ W. and to a point on land 

at position 42°19.7′ N.; 083°02.4′ W. 

(DATUM: NAD 83.) 

(b) Effective Period. This regulation is 

effective from 3 p.m. on June 18, 2010 

to 5 p.m. on June 20, 2010. This 

regulation will be enforced daily from 3 

p.m. until 5 p.m. from June 18, 2010, to 

June 20, 2010. 

(c) Regulations. 

(1) In accordance with the general 

regulations in § 100.35 of this part, entry 

into, and transiting or anchoring within 

this special local regulation area is 

prohibited unless authorized by the 

Captain of the Port Sector Detroit, or his 

designated on-scene representative. 

(2) This special local regulation area 

is closed to all vessel traffic, except as 

may be permitted by the Captain of the 

Port Detroit or his designated on-scene 

representative. 

(3) The ‘‘on-scene representative’’ of 

the Captain of the Port Sector Detroit is 

any Coast Guard commissioned, 

warrant, or petty officer who has been 

designated by the Captain of the Port 

Sector Detroit to act on his behalf. The 

on-scene representative of the Captain 

of the Port Sector Detroit will be aboard 

either a Coast Guard or Coast Guard 

Auxiliary vessel. The Captain of the Port 

or his designated on scene 

representative may be contacted via 

VHF Channel 16. 

(4) Vessel operators desiring to enter 

or operate within the special local 

regulation area shall contact the Captain 

of the Port Sector Detroit or his on-scene 

representative to obtain permission to 

do so. Vessel operators given permission 

to enter or operate in the special local 

regulation area must comply with all 

directions given to them by the Captain 

of the Port or his on-scene 

representative. 

Dated: May 24, 2010. 

E.J. Marohn, 

Commander, U.S. Coast Guard, Acting 

Captain of the Port Sector Detroit. 

[FR Doc. 2010–13806 Filed 6–8–10; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2010–0406] 

Drawbridge Operation Regulations; 

Newark Bay, NJ, Maintenance 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations. 

SUMMARY: The Commander, First Coast 

Guard District, has issued a temporary 

deviation from the regulation governing 

the operation of the Lehigh Valley 

Bridge across Newark Bay, mile 4.3, at 

Newark, New Jersey. This deviation 

allows the bridge to remain in the 

closed position on seven 

nonconsecutive days to facilitate 

scheduled maintenance. 

DATES: This deviation is effective from 

9 a.m. on June 14, 2010 through 2 p.m. 

on July 26, 2010. 

ADDRESSES: Documents mentioned in 

this preamble as being available in the 

docket are part of docket USCG–2010– 

0406 and are available online at 

http://www.regulations.gov, inserting 

USCG–2010–0406 in the ‘‘Keyword’’ and 

then clicking ‘‘Search’’. They are also 

available for inspection or copying at 

the Docket Management Facility (M–30), 

U.S. Department of Transportation, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call Mr. 

Joe Arca, Project Officer, First Coast 

Guard District, telephone (212) 668– 

7165. If you have questions on viewing 

the docket, call Renee V. Wright, 

Program Manager, Docket Operations, 

telephone 202–366–9826. 


erowe on DSK5CLS3C1PROD with RULES