29638 Federal Register / Vol. 61, No. 114 / Wednesday, June 12, 1996 / Rules and Regulations

1 In a rulemaking issued on April 1, 1996 (61 FR

14382), the effective date of Subpart B was delayed

until May 28, 1996.

16. In § 70.38(g)(4)(vii), the crossreference to ‘‘paragraph (h)’’ is revised

to read ‘‘paragraph (i).’’

17. In § 70.38(h)(1), the crossreference to ‘‘paragraph (h)’’ is revised

to read ‘‘paragraph (i).’’

18. In § 70.38(h)(2), the crossreference to ‘‘paragraph (h)’’ is revised

to read ‘‘paragraph (i).’’

PART 72—LICENSING

REQUIREMENTS FOR THE

INDEPENDENT STORAGE OF SPENT

FUEL AND HIGH-LEVEL RADIOACTIVE

WASTE

19. The authority citation for Part 72

continues to read as follows:

Authority: Secs. 51, 53, 57, 62, 63, 65, 69,

81, 161, 182, 183, 184, 186, 187, 189, 68 Stat.

929, 930, 932, 933, 934, 935, 948, 953, 954,

955, as amended, sec. 234, 83 Stat. 444, as

amended (42 U.S.C. 2071, 2073, 2077, 2092,

2093, 2095, 2099, 2111, 2201, 2232, 2233,

2234, 2236, 2237, 2238, 2282); sec. 274, Pub.

L. 86–373, 73 Stat. 688, as amended (42

U.S.C. 2021); sec. 201, as amended, 202, 206,

88 Stat. 1242, as amended, 1244, 1246 (42

U.S.C. 5841, 5842, 5846); Pub. L. 95–601, sec.

10, 92 Stat. 295 as amended by Pub. L. 102–

486, sec. 7902, 106 Stat. 3123 (42 U.S.C.

5851); sec. 102, Pub. L. 91–190, 83 Stat. (42

U.S.C. 4332); secs. 131, 132, 133, 135, 137,

141, Pub. L. 97–425, 96 Stat. 2229, 2230,

2232, 2241, sec. 148, Pub. L. 100–203, 101

Stat. 1330–235 (42 U.S.C. 10151, 10152,

10153, 10155, 10157, 10161, 10168).

Section 72.44(g) also issued under secs.

142(b) and 148(c), (d), Pub. L. 100–203, 101

Stat. 1330–232, 1330–236 (42 U.S.C.

10162(b), 10168(c), (d). Section 72.46 also

issued under sec. 189, 68 Stat. 935 (42 U.S.C.

2239); sec. 134, Pub. L. 97–425, 96 Stat. 2230

(42 U.S.C. 10154). Section 72.96(d) also

issued under sec. 145(g), Pub. L. 100–203;

101 Stat. 1330–235 (42 U.S.C. 10165(g)).

Subpart J also issued under secs. 2(2), 2(15),

2(19), 117(a), 141(h), Pub. L. 97–425, 96 Stat.

2202, 2203, 2204, 2222, 2244 (42 U.S.C.

10101, 10137(a), 10161(h). Subparts K and L

are also issued under sec. 133, 96 Stat. 2230

(42 U.S.C. 10153) and 218(a), 96 Stat. 2252

(42 U.S.C. 10198).

§ 72.54 [Amended]

20. In § 72.54(j)(1), the cross-reference

to ‘‘paragraph (j)’’ is revised to read

‘‘paragraph (k).’’

21. In § 72.54(j)(2), the cross-reference

to ‘‘paragraph (j)’’ is revised to read

‘‘paragraph (k).’’

Dated at Rockville, Maryland, this 29th day

of May, 1996.

For the Nuclear Regulatory Commission.

James M. Taylor,

Executive Director for Operations.

[FR Doc. 96–14897 Filed 6–11–96; 8:45 am]

BILLING CODE 7590–01–P

FEDERAL RESERVE SYSTEM

12 CFR Part 219

[Regulation S; Docket No. R–0906]

Reimbursement for Providing Financial

Records; Recordkeeping

Requirements for Certain Financial

Records

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Final rule.

SUMMARY: The Board of Governors of the

Federal Reserve System (Board) has

approved amendments to Subpart A of

Regulation S, which implements the

requirement under the Right to

Financial Privacy Act (RFPA) that the

Board establish the rates and conditions

under which payment shall be made by

a government authority to a financial

institution for assembling or providing

financial records pursuant to RFPA.

These amendments update the fees to be

charged and streamline the subpart

generally.

EFFECTIVE DATE: July 12, 1996.

FOR FURTHER INFORMATION CONTACT:

Elaine M. Boutilier, Senior Counsel

(202/452–2418), Legal Division, Board

of Governors of the Federal Reserve

System, Washington, DC 20551. For

users of the Telecommunication Device

for the Deaf (TDD), please contact

Dorothea Thompson (202/452–3544).

SUPPLEMENTARY INFORMATION:

Background

Section 1115 of the RFPA (12 U.S.C.

3415) requires the Board to establish, by

regulation, the rates and conditions

under which payment is made by a

Government authority to a financial

institution for searching for,

reproducing, or transporting data

required or requested under the RFPA.

Shortly after the RFPA was adopted, the

Board issued Regulation S (12 CFR 219)

to implement this provision (44 FR

55812, September 28, 1979). In January

1995, the Board adopted a new Subpart

B of Regulation S 1 and designated this

part of Regulation S as Subpart A (60 FR

231, January 3, 1995). No substantive

changes were made in that rulemaking

to the newly designated Subpart A.

Pursuant to section 303 of the Riegle

Community Development and

Regulatory Improvement Act of 1994,

Pub. L. 103–325 (12 U.S.C. 4803), the

Board reviewed Subpart A of Regulation

S and issued for comment proposed

amendments to update it (60 FR 65599,

December 20, 1995). The proposed

amendments eliminated unnecessary

provisions and updated the rates to be

paid and the exceptions to the

provisions of this Subpart.

Summary of comments: The Board

received 21 comments on the proposed

revisions—19 from banks or bank

holding companies, one from a trade

association, and one from a Federal

Reserve Bank. All comments supported

updating and streamlining the

provisions of the regulation. Several

comments, however, requested further

changes in the proposed regulation.

These requests for additional changes

covered two categories—the proposed

fee structure, and the exemptions from

the fees.

Fees. Ten of the 21 comments

requested further changes in the fee

schedule. The current fees are $10.00

per hour for search and processing time,

and $.15 per page for reproduction. The

proposed fees provided for two levels of

reimbursement for search and

processing time: clerical time at $11.00

per hour, and managerial time at $17.00

per hour. Proposed fees for reproduction

were left at $.15 per page. Of the nine

comments that specifically discussed

the reimbursement rate for search and

processing, six supported the proposed

fees and three requested increased fees.

Of the ten comments that focused on the

proposed reproduction fees, two

supported the proposed fees and eight

requested that they be raised. The

suggested reproduction fees ranged from

$.25 to $3.00 per page for paper copies,

and $.25 to $3.00 for microfiche copies.

Other miscellaneous comments on the

fee schedule included two comments

requesting that fees be periodically

adjusted to account for inflation, a

request for a definition of the terms

‘‘clerical/technical’’ and ‘‘manager/

supervisory’’, a request that a new

category be added for reimbursement for

legal advice, and a request that the

regulation specify that search/

processing time should be billed in 15-

minute increments.

Exceptions. The proposed regulation

updated the list of statutory exceptions

wherein a financial institution is not

entitled to reimbursement under the

RFPA. Eight of the 21 commenters

objected to these exceptions, stating that

they cover the vast majority of the

searches required. These objections

focused primarily on the exception for

requests from the IRS, and requests for

a corporation’s banking records. The

American Bankers Association, while

acknowledging that the exceptions are

set by statute, not the Board, stated that

these exceptions ‘‘effectively exclude
Federal Register / Vol. 61, No. 114 / Wednesday, June 12, 1996 / Rules and Regulations 29639

2BAI describes this position as follows: ‘‘Direct

supervision of assigned nonexempt staff in the

bookkeeping area with particular emphasis on work

flow to meet time deadlines. Includes training staff,

planning work schedules, recommending and

implementing staff needs, pay raises, etc.

Coordinates the section’s activities with other areas

of the bank. Handles the more involved problems

and calls from dissatisfied customers.’’

3BAI describes this position as follows:

‘‘Performs a variety of clerical duties in the

bookkeeping department. Duties may include filing

checks, overdrafts and stop payments, reconciling,

computerized operations, preparing statements and

reports, etc. May do exclusively DDA, adjustments,

reconciling, etc. or a combination of activities.

Handles more complex and difficult customer

problems; requires minimal supervision.’’

4BAI describes this position as follows:

‘‘Performs the same duties of a Bookkeeping and

Operations Clerk II only may have less experience.

Requires direct supervision.’’

98% of all situations in which banks

gather such records.’’

Based upon the comments received,

the Board has made some adjustments

to the reimbursement schedule.

I. Definitions

The definitions in Subpart A reiterate

the statutory definitions from the RFPA

for the applicable terms of this Subpart.

The definition for ‘‘directly incurred

costs’’ has been removed and

incorporated into the section concerning

cost reimbursement.

II. Cost Reimbursement

This section has been streamlined and

reorganized to place the rates in a

separate Appendix A for clarity and

ease of amendment when updating the

rates. The amendments also recognize

that courts issuing orders or subpoenas

in connection with grand jury

proceedings must pay the rates set by

Subpart A.

III. Rates

The Board has established uniform

rates for all depository institutions,

regardless of size or location, in the

belief that administration of a complex

fee schedule would be difficult.

A. Reproduction

The rates for reproduction set forth in

Appendix A to § 219.3 have been

increased based upon the comments

received. Eight out of ten comments on

the duplication rates stated that they

were too low. There was not a

consensus, however, among the

commenters on the appropriate amount

of the increase: two suggested $.25 per

page, two suggested $.50 per page, two

suggested $1.00 or more per page, and

two just requested a minimal increase in

the rate. The comments recommending

significantly higher fees did not provide

supporting information on the direct

costs of duplication, and the statute

provides for reimbursement of ‘‘costs

* * * directly incurred in * * *

reproducing * * *.’’ A plurality of the

comments, however, recommended a

minimal increase in the fees, and some

provided supporting information on

costs. Therefore, the Board has raised

the reimbursement rate for

photocopying to $.25 per page. Other

commenters suggested that the

reimbursement rate for duplication of

microfiche also was inadequate, based

upon the costs to the bank. Accordingly,

the Board modified the reimbursement

schedule to increase the rate for

reproduction of paper copies of

microfiche from $.15 to $.25 to match

the photocopying rate, and increase the

rate for duplication of microfiche from

$.30 to $.50 per microfiche.

B. Search and Processing

The fees for search and processing

have not been changed from those

issued for comment. These rates are

separated into two categories—clerical/

technical and manager/supervisory. Any

search for sensitive customer records is

likely to involve both clerical staff and

managerial staff, who are paid at

different levels. The rates set for this

reimbursement were calculated using

the 1994 Bank Cash Compensation

Survey done by the Bank

Administration Institute (BAI). Based

upon the job descriptions in the Cash

Compensation Survey, the position of

Supervisor, Bookkeeping 2 was used to

calculate the managerial rate. The

calculation was made based upon the

total compensation (with bonus) for all

banks on a national average ($27,600)

divided by 2080 hours, adjusted up by

25% to cover benefits, and further

adjusted by 3% for inflation since 1994.

The clerical rate was calculated in the

same way, but using an average of the

two job positions of Clerk II 3

(Bookkeeping and Operations @

$18,100) and Clerk I 4 (Bookkeeping and

Operations @ $15,100).

IV. Exceptions

This section has been updated to

reflect changes in the exceptions listed

by the RFPA. Although many comments

were critical of the listed exceptions, the

Board cannot change or eliminate them,

because they are set by statute. They are

merely set forth in the regulation to

assist depository institutions in

correctly applying the reimbursement

schedule.

V. Conditions for Payment and Payment

Procedures

One commenter suggested that the

rule require time to be billed in 15-

minute increments, as the existing

regulation does. Accordingly, the Board

has amended the section on itemized

billing to state that the time should be

billed in 15-minute increments. No

other changes have been made to these

two sections.

Regulatory Flexibility Act

Pursuant to 5 U.S.C. 605, the Board

certifies that this rule will not have a

significant economic impact on a

substantial number of small entities.

The final rule confers a benefit on

financial institutions, including small

financial institutions, by providing for

reimbursement of certain costs incurred

in complying with a requirement to

assemble and produce financial records.

Paperwork Reduction Act

In accordance with section 3506 of

the Paperwork Reduction Act of 1995

(44 U.S.C. Ch. 35; 5 CFR 1320 Appendix

A.1), the Board reviewed the rule under

the authority delegated to the Board by

the Office of Management and Budget.

The Right to Financial Privacy Act

mandates that each financial institution

maintain a record of instances in which

it releases a consumer’s financial

information to a government agency.

Generally, the institution may not

release records until the government

agency has notified the consumer of its

intent to request the record, together

with the reason for the request.

Normally, the agency may not obtain

records unless it has a subpoena, a

search warrant, or an authorization from

the consumer.

The Federal Reserve may not conduct

or sponsor, and an organization is not

required to respond to, this information

collection unless it displays a currently

valid OMB control number. The OMB

control number for the Recordkeeping

and Disclosure Requirements in

Connection with the Right to Financial

Privacy Act is 7100–0203.

Because the records would be

maintained at banks, no issue of

confidentiality under the Freedom of

Information Act arises.

This final regulation, 12 CFR part 219,

has no effect upon the paperwork

burden associated with the

Recordkeeping and Disclosure

Requirements in Connection with the

Right to Financial Privacy Act. That

hour burden is estimated to be 22

minutes per response. It is estimated

that the frequency of response at state

member banks is 30 responses per year.

Thus the annual hour burden across the

1,042 state member banks is estimated

to be 11,462 hours. Based on an hourly

cost of $20, the annual cost to the public

is estimated to be $229,240.
29640 Federal Register / Vol. 61, No. 114 / Wednesday, June 12, 1996 / Rules and Regulations

Send comments regarding the burden

estimate, or any other aspect of this

collection, including suggestions for

reducing the burden, to Mary M.

McLaughlin, Federal Reserve Board

Clearance Officer, Division of Research

and Statistics, Mail Stop 97, Board of

Governors of the Federal Reserve

System, Washington, DC 20551 and to

the Office of Management and Budget,

Paperwork Project (7100–0203),

Washington, DC 20503.

List of Subjects in 12 CFR Part 219

Banks, banking, Currency, Federal

Reserve System, Reporting and

recordkeeping requirements.

For the reasons set out in the

preamble, 12 CFR Part 219, as amended

at 60 FR 231 and 44144, and 61 FR

14382, effective May 28, 1996, is

amended as set forth below.

PART 219—REIMBURSEMENT FOR

PROVIDING FINANCIAL RECORDS;

RECORDKEEPING REQUIREMENTS

FOR CERTAIN FINANCIAL RECORDS

(REGULATION S)

Subpart A—Reimbursement to

Financial Institutions for Providing

Financial Records

1. The authority citation for Subpart

A continues to read as follows:

Authority: 12 U.S.C. 3415.

2. Subpart A is amended by revising

§§ 219.2 through 219.6 to read as

follows:

§ 219.2 Definitions.

For the purposes of this subpart, the

following definitions shall apply:

Customer means any person or

authorized representative of that person

who uses any service of a financial

institution, or for whom a financial

institution acts or has acted as a

fiduciary in relation to an account

maintained in the person’s name.

Customer does not include corporations

or partnerships comprised of more than

five persons.

Financial institution means any office

of a bank, savings bank, card issuer as

defined in section 103 of the Consumers

Credit Protection Act (15 U.S.C.

1602(n)), industrial loan company, trust

company, savings association, building

and loan, or homestead association

(including cooperative banks), credit

union, or consumer finance institution,

located in any State or territory of the

United States, the District of Columbia,

Puerto Rico, Guam, American Samoa, or

the Virgin Islands.

Financial record means an original or

copy of, or information known to have

been derived from, any record held by

a financial institution pertaining to a

customer’s relationship with the

financial institution.

Government authority means any

agency or department of the United

States, or any officer, employee or agent

thereof.

Person means an individual or a

partnership of five or fewer individuals.

§ 219.3 Cost reimbursement.

(a) Fees payable. Except as provided

in § 219.4, a government authority, or a

court issuing an order or subpoena in

connection with grand jury proceedings,

seeking access to financial records

pertaining to a customer shall reimburse

the financial institution for reasonably

necessary costs directly incurred in

searching for, reproducing or

transporting books, papers, records, or

other data as set forth in this section.

The reimbursement schedule for a

financial institution is set forth in

Appendix A to this section. If a

financial institution has financial

records that are stored at an

independent storage facility that charges

a fee to search for, reproduce, or

transport particular records requested,

these costs are considered to be directly

incurred by the financial institution and

may be included in the reimbursement.

(b) Search and processing costs. (1)

Reimbursement of search and

processing costs shall cover the total

amount of personnel time spent in

locating, retrieving, reproducing, and

preparing financial records for

shipment. Search and processing costs

shall not cover analysis of material or

legal advice.

(2) If itemized separately, search and

processing costs may include the actual

cost of extracting information stored by

computer in the format in which it is

normally produced, based on computer

time and necessary supplies; however,

personnel time for computer search may

be paid for only at the rates specified in

Appendix A to this section.

(c) Reproduction costs. The

reimbursement rates for reproduction

costs for requested documents are set

forth in Appendix A to this section.

Copies of photographs, films, computer

tapes, and other materials not listed in

Appendix A to this section are

reimbursed at actual cost.

(d) Transportation costs.

Reimbursement for transportation costs

shall be for the reasonably necessary

costs directly incurred to transport

personnel to locate and retrieve the

requested information, and to convey

such material to the place of

examination.

Appendix A to § 219.3—Reimbursement

Schedule

Reproduction:

Photocopy, per page—$.25

Paper copies of microfiche, per frame—

$.25

Duplicate microfiche, per microfiche—$.50

Computer diskette—$5.00

Search and Processing:

Clerical/Technical, hourly rate—$11.00

Manager/Supervisory, hourly rate—$17.00

§ 219.4 Exceptions.

A financial institution is not entitled

to reimbursement under this subpart for

costs incurred in assembling or

providing financial records or

information related to:

(a) Security interests, bankruptcy

claims, debt collection. Any financial

records provided as an incident to

perfecting a security interest, proving a

claim in bankruptcy, or otherwise

collecting on a debt owing either to the

financial institution itself or in its role

as a fiduciary.

(b) Government loan programs.

Financial records that are necessary to

permit the appropriate government

authority to carry out its responsibilities

under a government loan, loan guaranty

or loan insurance program.

(c) Nonidentifiable information.

Financial records that are not identified

with or identifiable as being derived

from the financial records of a particular

customer.

(d) Financial supervisory agencies.

Financial records disclosed to a

financial supervisory agency in the

exercise of its supervisory, regulatory, or

monetary functions with respect to a

financial institution.

(e) Internal Revenue summons.

Financial records disclosed in

accordance with procedures authorized

by the Internal Revenue Code.

(f) Federally required reports.

Financial records required to be

reported in accordance with any federal

statute or rule promulgated thereunder.

(g) Government civil or criminal

litigation. Financial records sought by a

government authority under the Federal

Rules of Civil or Criminal Procedure or

comparable rules of other courts in

connection with litigation to which the

government authority and the customer

are parties.

(h) Administrative agency subpoenas.

Financial records sought by a

government authority pursuant to an

administrative subpoena issued by an

administrative law judge in an

adjudicatory proceeding subject to 5

U.S.C. 554, and to which the

government authority and the customer

are parties.

(i) Investigation of financial

institution or its noncustomer. Financial
Federal Register / Vol. 61, No. 114 / Wednesday, June 12, 1996 / Rules and Regulations 29641

records sought by a government

authority in connection with a lawful

proceeding, investigation, examination,

or inspection directed at the financial

institution in possession of such

records, or at an entity that is not a

customer as defined in § 219.2 of this

part.

(j) General Accounting Office

requests. Financial records sought by

the General Accounting Office pursuant

to an authorized proceeding,

investigation, examination, or audit

directed at a government authority.

(k) Federal Housing Finance Board

requests. Financial records or

information sought by the Federal

Housing Finance Board (FHFB) or any

of the Federal home loan banks in the

exercise of the FHFB’s authority to

extend credit to financial institutions or

others.

(l) Department of Veterans Affairs.

The disclosure of the name and address

of any customer to the Department of

Veterans Affairs where such disclosure

is necessary to, and used solely for, the

proper administration of benefits

programs under laws administered by

that Department.

§ 219.5 Conditions for payment.

(a) Direct costs. Payment shall be

made only for costs that are both

directly incurred and reasonably

necessary to provide requested material.

Search and processing, reproduction,

and transportation costs shall be

considered separately when

determining whether the costs are

reasonably necessary.

(b) Compliance with legal process,

request, or authorization. No payment

may be made to a financial institution

until it satisfactorily complies with the

legal process, the formal written request,

or the customer authorization. When the

legal process or formal written request

is withdrawn, or the customer

authorization is revoked, or where the

customer successfully challenges

disclosure to a grand jury or government

authority, the financial institution shall

be reimbursed for the reasonably

necessary costs incurred in assembling

the requested financial records prior to

the time the financial institution is

notified of such event.

(c) Itemized bill or invoice. No

reimbursement is required unless a

financial institution submits an

itemized bill or invoice specifically

detailing its search and processing,

reproduction, and transportation costs.

Search and processing time should be

billed in 15-minute increments.

§ 219.6 Payment procedures.

(a) Notice to submit invoice. Promptly

following a service of legal process or

request, the court or government

authority shall notify the financial

institution that it must submit an

itemized bill or invoice in order to

obtain payment and shall furnish an

address for this purpose.

(b) Special notice. If a grand jury or

government authority withdraws the

legal process or formal written request,

or if the customer revokes the

authorization, or if the legal process or

request has been successfully

challenged by the customer, the grand

jury or government authority shall

promptly notify the financial institution

of these facts, and shall also notify the

financial institution that it must submit

an itemized bill or invoice in order to

obtain payment of costs incurred prior

to the time of the notice to the financial

institution receives this notice.

§ 219.7 [Removed]

3. Section 219.7 is removed.

By order of the Board of Governors of the

Federal Reserve System, June 5, 1996.

William W. Wiles,

Secretary of the Board.

[FR Doc. 96–14688 Filed 6–11–96; 8:45 am]

BILLING CODE 6210–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 94–ANE–30; Amendment 39–

9646; AD 96–12–04]

RIN 2120–AA64

Airworthiness Directives; Superior Air

Parts, Inc. Pistons Installed on

Teledyne Continental Motors O–470

Series Reciprocating Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to certain Superior Air Parts,

Inc. Parts Manufacturer Approval (PMA)

pistons installed on Teledyne

Continental Motors O–470 series

reciprocating engines, that requires

removal from service of certain pistons.

This amendment is prompted by piston

failures. The actions specified by this

AD are intended to prevent piston

failure, which can result in engine

power loss, engine failure and loss of

the aircraft.

DATES: Effective August 12, 1996.

FOR FURTHER INFORMATION CONTACT:

Richard Karanian, Aerospace Engineer,

Special Certification Office, FAA,

Rotorcraft Directorate, 2601 Meacham

Blvd., Fort Worth, TX 76137–4298;

telephone (817) 222–5195, fax (817)

222–5959.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to Superior Air Parts,

Inc. Parts Manufacturer Approval (PMA)

pistons installed on Teledyne

Continental Motors O–470 series

reciprocating engines was published in

the Federal Register on February 22,

1995 (60 FR 9800). That action proposed

to require removal from service of

Superior Air Parts, Inc. pistons, Part

Number (P/N) SA626992, at the next

access to the piston, top overhaul, or

major overhaul. The affected pistons can

be identified by either a stamped-in P/

N on the piston dome (SA626992 or

SA626992P15) or, by a raised casting

number (SA632932) along one of the

piston pin bosses on the underside of

the piston.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposal or the FAA’s determination of

the cost to the public. The FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed.

The manufacturer has informed the

FAA that 5,585 pistons were shipped

between December 1976 and June 1981

and will be affected by this AD. The

FAA estimates that it will take

approximately 2 work hours per piston

to accomplish the required actions, and

that the average labor rate is $60 per

work hour. Required parts will cost

approximately $156 per piston. Based

on these figures, the total cost impact of

the AD on U.S. operators is estimated to

be $1,541,460.

The regulations adopted herein will

not have substantial direct effects on the

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. Therefore, in

accordance with Executive Order 12612,

it is determined that this final rule does

not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

For the reasons discussed above, I

certify that this action (1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under DOT