Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Rules and Regulations 12137

112(l)(5) requirements for approval of a

program for delegation of section 112

standards as promulgated by EPA as

they apply to part 70 sources. Section

112(l)(5) requires that the State’s

program contain adequate authorities,

adequate resources for implementation,

and an expeditious compliance

schedule, which are also requirements

under part 70. Therefore, EPA is also

promulgating approval under section

112(l)(5) and 40 CFR 63.91 of the State’s

program for receiving delegation of

section 112 standards that are

unchanged from Federal standards as

promulgated. This program for

delegations only applies to sources

covered by the part 70 program.

The EPA is also promulgating

approval of Wisconsin’s preconstruction

permitting program found in Chapters

406 and 408, Wis. Adm. Code, under the

authority of title V and part 70 solely for

the purpose of implementing section

112(g) to the extent necessary during the

transition period between promulgation

of the Federal section 112(g) rule and

adoption of any necessary State rules to

implement EPA’s section 112(g)

regulations. However, since the

approval is for the single purpose of

providing a mechanism to implement

section 112(g) during the transition

period, the approval itself will be

without effect if EPA decides in the

final section 112(g) rule that sources are

not subject to the requirements of the

rule until State regulations are adopted.

Although section 112(l) generally

provides authority for approval of State

air programs to implement section

112(g), title V and section 112(g)

provide authority for this limited

approval because of the direct linkage

between the implementation of section

112(g) and title V. The scope of this

approval is narrowly limited to section

112(g) and does not confer or imply

approval for purposes of any other

provision under the Act, for example,

section 110. The duration of this

approval is limited to 18 months

following promulgation by EPA of

section 112(g) regulations, to provide

Wisconsin adequate time for the State to

adopt regulations consistent with the

Federal requirements.

III. Administrative Requirements

A. Official File

Copies of the State’s submittal and

other information relied upon for the

final interim approval, including public

comments on the proposal received and

reviewed by EPA, are maintained in the

official file at the EPA Regional Office.

The file is an organized and complete

record of all the information submitted

to, or otherwise considered by, EPA in

the development of this final interim

approval. The official file is available for

public inspection at the location listed

under the ADDRESSES section of this

document.

B. Executive Order 12866

The Office of Management and Budget

has exempted this action from Executive

Order 12866 review.

C. Regulatory Flexibility Act

The EPA’s actions under section 502

of the Act do not create any new

requirements, but simply address

operating permits programs submitted

to satisfy the requirements of 40 CFR

part 70. Because this action does not

impose any new requirements, it does

not have a significant impact on a

substantial number of small entities.

List of Subjects in 40 CFR Part 70

Environmental protection,

Administrative practice and procedure,

Air pollution control, Intergovernmental

relations, Operating permits, Reporting

and recordkeeping requirements.

Authority: 42 U.S.C. 7401–7671q.

Dated: February 23, 1995.

Robert Springer,

Acting Regional Administrator.

Part 70, title 40 of the Code of Federal

Regulations is amended as follows:

PART 70—[AMENDED]

1. The authority citation for part 70

continues to read as follows:

Authority: 42 U.S.C. 7401 et seq.

2. Appendix A to part 70 is amended

by adding the entry for Wisconsin in

alphabetical order to read as follows:

Appendix A to Part 70—Approval

Status of State and Local Operating

Permits Programs

* * * * *

Wisconsin

(a) Department of Natural Resources:

submitted on January 27, 1994; interim

approval effective on April 5, 1995; interim

approval expires April 7, 1997.

(b) Reserved

* * * * *

[FR Doc. 95–5403 Filed 3–3–95; 8:45 am]

BILLING CODE 6560–50–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 32, 36 and 65

[CC Docket No. 93–50; FCC 95–56]

Accounting and Rate Treatment of

Allowance for Funds Used During

Construction (‘‘AFUDC’’) and

Telephone Plant Under Construction

(‘‘TPUC’’)

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission has adopted

a report and order to amend its rules

regarding the accounting and

ratemaking treatment for TPUC and

interest costs incurred to finance

construction projects. This action is to

make FCC rules consistent with

generally accepted accounting

principles and as fair and reasonable as

possible for ratemaking purposes.

EFFECTIVE DATE: September 6, 1995.

FOR FURTHER INFORMATION CONTACT:

Kim Yee, Common Carrier Bureau,

Accounting and Audits Division, (202)

418–0810.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Commission’s Report

and Order in CC Docket No. 93–50,

adopted February 13, 1995 and released

February 28, 1995. The complete text of

this Report and Order is available for

inspection and copying during normal

business hours in the FCC Dockets

Branch (Room 230), 1919 M Street NW.,

Washington, DC, and may also be

purchased from the Commission’s copy

contractor, International Transcription

Service, Inc., at 2100 M Street, NW.,

Suite 140, Washington, DC 20037, or

call (202) 857–3800.

Synopsis of Report and Order

1. This Report and Order amends Part

32, Uniform Systems of Accounts, and

65, Interstate Rate of Return Prescription

Procedures and Methodologies, with

respect to the proper accounting and

ratemaking treatment for telephone

plant under construction and allowance

for funds used during construction.

2. Specifically, this Report and Order

amended Part 32 to require carriers to

capitalize AFUDC for both short-term

and long-term TPUC using a

capitalization rate based on the carrier’s

average cost of debt. It amended Part 65

to include the interstate portion of the

TPUC balances in the interstate rate

base and to require carriers to reduce

their interstate revenue requirement by

the amount of AFUDC capitalized in the

current year.
12138 Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Rules and Regulations

3. This Report and Order eliminates

Account 2004, Telecommunication

Plant Under Construction-long term. All

plant under construction will be record

in Account 2003. The distinction

between long-term and short-term

construction is eliminated.

4. The Report and Order will be

effective six months after it is published

in the Federal Register.

Rule Changes

5. Accordingly, it is ordered that,

pursuant to Section 1, 4(i), 201–205,

219, and 220 of the Communications

Act of 1934, as amended, 47 U.S.C. 151,

154(i), 201–205, 219, and 220, parts 32,

36, and 65 of our Rules, 47 CFR parts

32, 36, and 65 are amended, as set forth

below.

6. It is further ordered that, pursuant

to Section 220(g) of the Communication

Act of 1934, as amended, 47 U.S.C.

220(g) and Section 1.427(c) of the

Commission’s Rules, 47 CFR 1.427(c),

the amendments to parts 32, 36, and 65

of the Commission’s Rules, 47 C.F.R.

parts 32, 36, and 65 as set forth below,

shall be effective September 6, 1995.

List of Subjects

47 CFR Part 32

Uniform system of accounts.

47 CFR Part 36

Reporting and recordkeeping

requirements, Telephone, Uniform

System of Accounts.

47 CFR Part 65

Communications common carriers,

Reporting and recordkeeping

requirements, Telephone.

Federal Communication Commission.

William F. Caton,

Acting Secretary.

Parts 32, 36 and 65 of Title 47 of the

CFR are amended as follows:

PART 32—UNIFORM SYSTEM OF

ACCOUNTS FOR

TELECOMMUNICATIONS COMPANIES

1. The authority citation for part 32

continues to read as follows:

Authority: Secs. 4(i), 4(j) and 220 as

amended; 47 U.S.C. secs. 154(i), 154(j) and

220 unless otherwise noted.

2. Paragraph 32.2000(c)(2)(x) is

revised to read as follows:

§ 32.2000 Instructions for

telecommunications plant accounts.

* * * * *

(c) * * *

(2) * * *

(x) Allowance for funds used during

construction (‘‘AFUDC’’) provides for

the cost of financing the construction of

telecommunications plant. AFUDC shall

be charged to Account 2003,

Telecommunications Plant Under

Construction, and credited to Account

7340. The rate for calculating AFUDC

shall be determined as follows: If

financing plans associate a specific new

borrowing with an asset, the rate on that

borrowing may be used for the asset; if

no specific new borrowing is associated

with an asset or if the average

accumulated expenditures for the asset

exceed the amounts of specific new

borrowing associated with it, the

capitalization rate to be applied to such

excess shall be weighted average of the

rates applicable to other borrowing of

the enterprise. The amount of interest

cost capitalized in an accounting period

shall not exceed the total amount of

interest cost incurred by the company in

that period.

* * * * *

3. Section 32.2003 is amended by

revising the section heading and

paragraphs (a) and (c) to read as follows:

§ 32.2003 Telecommunications plant under

construction.

(a) This account shall include the

original cost of construction projects.

(Note also § 32.2000(c).)

* * * * *

(c) If a construction project has been

suspended for six months or more, the

cost of the project included in this

account shall be transferred to Account

2006, Nonoperating Plant, without

further direction or approval of this

Commission. If a project is abandoned,

the cost included in this account shall

be charged to Account 7370, Special

Charges.

* * * * *

§ 32.2004 [Removed]

4. Section 32.2004 is removed.

5. Section 32.7340 is revised in its

entirety to read as follows:

§ 32.7340 Allowance for funds used during

construction.

This account shall be credited with

amounts charged to the

telecommunications plant under

construction account. (See

§ 32.2000(c)(2)(x).)

PART 36—JURISDICTIONAL

SEPARATIONS PROCEDURES;

STANDARD PROCEDURES FOR

SEPARATING

TELECOMMUNICATIONS PROPERTY

COSTS, REVENUES, EXPENSES,

TAXES AND RESERVES FOR

TELECOMMUNICATIONS COMPANIES

1. The authority citation for part 36

continues to read as follows:

Authority: 47 U.S.C. Secs. 151, 154 (i) and

(j), 205, 221(c), 403 and 410.

2. Section 36.101 is revised to read as

follows:

§ 36.101 Section arrangement.

(a) This subpart is arranged in

sections as follows:

General

Telecommunications Plant in Service—

Account 2001—36.101 and 36.102.

General Support Facilities—Account 2110—

36.111 and 36.112.

Central Office Equipment—Accounts 2210,

2220, 2230—36.121 thru 36.126.

Information Origination/Termination

Equipment—Account 2310—36.141 and

36.142.

Cable and Wire Facilities—Account 2410—

36.151 thru 36.157.

Amortization Assets—Accounts 2680 and

2690—36.161 and 36.162.

Telecommunications Plant—Other Accounts

2002 thru 2005—36.171.

Rural Telephone Bank Stock—36.172.

Material and Supplies—Accounts 1220, and

Cash Working Capital—36.181 and 36.182.

Equal Access Equipment—36.191.

3. Section 36.171 is revised to read as

follows:

§ 36.171 Property held for future

telecommunications use—Account 2002;

Telecommunications plant under

construction—Account 2003; and

Telecommunications plant adjustment—

Account 2005.

The amounts carried in Accounts

2002, 2003, and 2005 are apportioned

among the operations on the basis of the

apportionment of Account 2001,

Telecommunications Plant in Service.

4. Section 36.222(c) is revised to read

as follows:

§ 36.222 Nonoperating income and

expenses—Account 7300.

* * * * *

(c) The portion reflecting allowance

for funds used during construction is

apportioned on the basis of the cost of

Telecommunications Plant Under

Construction—Account 2003. The

portion reflecting costs for social and

community welfare contributions and

fees is apportioned on the basis of the

apportionment of corporate operations

expenses.

PART 65—INTERSTATE RATE OF

RETURN PRESCRIPTION

PROCEDURES AND METHODOLOGIES

1. The authority citation for part 65

continues to read as follows:

Authority: Secs. 4, 201, 202, 203, 205, 218,

403, 48 Stat., 1066, 1072, 1077, 1094, as

amended, 47 U.S.C. 154, 201, 202, 203, 205,

218, 403.

2. Section 65.450(d) is revised to read

as follows:
Federal Register / Vol. 60, No. 43 / Monday, March 6, 1995 / Rules and Regulations 12139

§ 65.450 Net income.

* * * * *

(d) Except for the allowance for funds

used during construction, reasonable

charitable deductions and interest

related to customer deposits, the

amounts recorded as nonoperating

income and expenses and taxes

(Accounts 7300–7450) and interest and

related items (Accounts 7500–7540) and

extraordinary items (Accounts 7600–

7640) shall not be included unless this

Commission specifically determines

that particular items recorded in those

accounts shall be included.

3. Section 65.820(a) is revised to read

as follows:

§ 65.820 Included items.

(a) Telecommunications Plant. The

interstate portion of all assets

summarized in Account 2001

(Telecommunications Plant in Service)

and Account 2002 (Property Held for

Future Use), net of accumulated

depreciation and amortization, and

Account 2003 (Telecommunications

Plant Under Construction), and, to the

extent such inclusions are allowed by

this Commission, Account 2005

(Telecommunications Plant

Adjustment), net of accumulated

amortization. Any interest cost for funds

used during construction capitalized on

assets recorded in these accounts shall

be computed in accordance with the

procedures in § 32.2000(c)(2)(x) of this

chapter.

[FR Doc. 95–5187 Filed 3–3–95; 8:45 am]

BILLING CODE 6712–01–M

DEPARTMENT OF TRANSPORTATION

Research and Special Programs

Administration

49 CFR Part 107

[Docket No. HM–207D; Amdt. No. 107–33]

RIN 2137–AC60

Hazardous Materials Regulations;

Penalty Guidelines

AGENCY: Research and Special Programs

Administration (RSPA), DOT.

ACTION: Final rule.

SUMMARY: In this final rule, RSPA is

publishing its hazardous material

transportation enforcement civil penalty

guidelines. This action provides the

regulated community and the general

public with guidance as to the factors

RSPA considers in its hazmat penalty

assessment process.

EFFECTIVE DATE: This rule is effective

April 7, 1995.

FOR FURTHER INFORMATION CONTACT: John

J. O’Connell, Jr., Office of Hazardous

Materials Enforcement, (202) 366–4700;

or Edward H. Bonekemper, III, Office of

Chief Counsel, (202) 366–4400,

Research and Special Programs

Administration, U.S. Department of

Transportation, 400 Seventh Street,

SW., Washington, DC 20590–0001.

SUPPLEMENTARY INFORMATION:

I. Background

In response to a request contained in

Senate Report 103–150 that

accompanied the Department of

Transportation and Related Agencies

Appropriations Act, 1994, RSPA is

publishing its hazardous material

transportation (hazmat) enforcement

civil penalty guidelines as an appendix

to its regulations. This action will

provide the regulated community and

the general public with information

concerning how RSPA generally begins

its hazmat penalty assessment process

and types of information that

respondents in enforcement cases

should provide to justify reduction of

proposed penalties.

RSPA enforcement personnel and

attorneys use these guidelines as a

partial means of determining a baseline

civil penalty for selected violations of

the Hazardous Materials Regulations

(HMR; 49 CFR Parts 171–180), or the

Federal hazardous material

transportation law (Federal hazmat law),

49 U.S.C. 5101 et seq. (formerly the

Hazardous Materials Transportation Act

(HMTA), 49 App. U.S.C. 1801 et seq.).

Because these guidelines are nonbinding and are periodically updated,

they are being published as an

informational appendix to the

enforcement regulations, Subpart D of

Part 107 in Title 49 of the Code of

Federal Regulations (CFR). They are

being published without public notice

or comment because they are merely

informational, are not finally

determinative of any issues or rights,

and do not have the force of law.

Because these guidelines are merely a

general statement of agency policy and

practice and because they impose no

requirements, no notice of proposed

rulemaking is necessary.

This rule publishes the guidelines as

they existed on January 18, 1995. In any

particular case, the Office of Hazardous

Materials Enforcement will use the

version of the guidelines in effect at the

time of its referral of a matter to the

Office of the Chief Counsel for possible

issuance of a notice of probable

violation (NOPV). However, since the

guidelines are not legally binding, later

changes in the guidelines may be

considered in a particular case before a

final order is issued.

On November 16, 1990, Congress

amended the HMTA by passing the

Hazardous Materials Transportation

Uniform Safety Act of 1990 (HMTUSA;

Public Law 101–615); in HMTUSA,

Congress increased the maximum

penalties for HMTA and HMR violations

from $10,000 to $25,000 per violation

per day. The guidelines reflect the

culmination of a five-year program

under which RSPA increased the

baseline penalty for most violations by

20 percent per year (on November 16 of

each year between 1990 and 1994) to

effect Congress’ 1990 increase of the

maximum penalty for hazmat violations.

These guidelines are a preliminary

assessment tool used by RSPA

personnel, and they create no rights in

any party. They contain baseline

amounts or ranges for violations that

frequently have been cited in RSPA

hazmat NOPVs. When a violation not

described in the guidelines is

encountered, it sometimes is possible to

determine a baseline penalty by analogy

to a similar violation in the guidelines.

Even when the guidelines are

applicable to a violation, the use of the

guidelines is only a starting point. They

promote consistency and generally are

used to provide some standard for

imposing similar penalties in similar

cases. However, no two cases are

identical, and ritualistic use of the

guidelines would produce arbitrary

results and, most significantly, would

ignore the statutory mandate to consider

several specific assessment criteria.

Therefore, regardless of whether the

guidelines are used to determine a

baseline amount for a violation, RSPA

enforcement and legal personnel must

apply the statutory assessment criteria

to all relevant information in the record

concerning any alleged violation and

the apparent violator. These criteria are

in 49 U.S.C. 5123 and 49 CFR 107.331.

The criteria that RSPA applies are the

nature, extent, circumstances, and

gravity of each violation; the degree of

the violator’s culpability; the violator’s

history of prior violations (if any); the

violator’s ability to pay; any effect of the

penalty on the violator’s ability to

continue to do business, and other

matters that justice requires. The

baseline amount or range is an initial

reflection of the nature, extent,

circumstances, and gravity of the

violation as compared with other types

of violations. This amount then may be

modified on the basis of case-specific

information on nature, extent,

circumstances, and gravity, as well as

information with respect to the other

enumerated factors.