Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2969

1The example must show the minimum periodic

payment and the time it would take to repay the

$10,000 balance if the consumer made only those

payments and obtained no additional credit

extensions.

outstanding balance and a recent annual

percentage rate (APR): 1

(2) The APR;

(3) Fees imposed by the creditor and

third parties;

(4) A statement that negative

amortization may occur and that as a

result a consumer’s equity in a home

may decrease; and

(5) Several statements, including a

statement that loss of the home could

occur in the event of default.

Subsequent Disclosures

Subject to certain limitations on

changes in terms, creditors are generally

required to send the consumer a fifteenday advance notice if a term on the plan

is changed. In addition, a notice must

also be sent if additional extensions of

credit are prohibited or if the credit

limit is reduced; this notice must be

sent no later than three business days

after the action is taken. 12 CFR 226.9(c)

Limitations on Home-equity Plans

Regulation Z prescribes substantive

limitations on the changes that a

creditor can make in the annual

percentage rate, termination of a plan,

and any other change in the credit terms

that were initially disclosed. For

example, a creditor cannot terminate a

plan and demand repayment of the

entire outstanding balance unless the

consumer has engaged in fraud or

misrepresentation, failed to meet the

repayment terms, or adversely affected

the creditor’s security by action or

inaction. A creditor generally cannot

change a term unless the change was

provided for in the initial agreement,

the consumer agrees to the change in

writing, or the change is insignificant or

‘‘unequivocally beneficial’’ to the

consumer throughout the remainder of

the plan; and cannot apply a new index

and margin unless the original index

becomes unavailable. 12 CFR 226.5b(f)

Advertising

Creditors generally trigger additional

disclosures, in advertisements, if they

advertise account-opening disclosures

relating to finance charges and other

significant charges or repayment terms

for a plan. If a home-equity plan

advertisement contains a trigger term,

creditors must also state the following:

(1) The periodic rate used to compute

the finance charge (expressed as an

APR);

(2) Loan fees that are a percentage of

the credit limit, along with an estimate

of other plan fees; and

(3) The maximum APR that could be

imposed in a variable-rate plan.

If a minimum payment for the homeequity plan is stated, the advertisement

must also state if a balloon payment will

result. For a variable-rate plan, if the

advertisement states a rate other than

one based on the contract’s index and

margin, the advertisement must also

state how long the introductory rate will

be in effect. The introductory rate and

the fully-indexed rate must be disclosed

with equal prominence. In addition,

creditors cannot advertise home-equity

plans as ‘‘free money’’ (or using a

similar term) and cannot discuss the tax

consequences of interest deductions in

a misleading way. 12 CFR 226.16(d)

III. Request for Comments

The Board requests comment on

whether the existing home-equity

lending rules provide adequate

protections for consumers and whether

any statutory or regulatory changes are

warranted to ensure adequate disclosure

and other consumer protections in

connection with open-end home-equity

lines of credit.

The Board will submit its report to the

Congress in early fall 1996, based on the

comments of interested parties and its

own analysis.

By order of the Board of Governors of the

Federal Reserve System, January 24, 1996.

William W. Wiles,

Secretary of the Board.

[FR Doc. 96–1651 Filed 1–29–96; 8:45 am]

BILLING CODE 6210–01–P

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric

Administration

15 CFR Part 981

[Docket No. 951213299–5299–01]

RIN 0648–AI42

Ocean Thermal Energy Conversion

Licensing Program

AGENCY: Office of Ocean and Coastal

Resource Management (OCRM),

National Ocean Service (NOS), National

Oceanic and Atmospheric

Administration (NOAA), Department of

Commerce (DOC).

ACTION: Proposed rule.

SUMMARY: The National Oceanic and

Atmospheric Administration (NOAA) is

proposing to remove Part 981 from Title

15 of the Code of Federal Regulations

(Part 981). Part 981 implements the

Ocean Thermal Energy Conversion

(OTEC) Licensing Program, which was

established under the Ocean Thermal

Energy Conversion Act of 1980, as

amended, (OTEC Act), 42 U.S.C. 9101 et

seq. No applications under Part 981 for

licenses of commercial OTEC facilities

or plantships have yet been received by

NOAA, and there has been a low level

of NOAA activity under the OTEC Act.

During this 15 year period of time, the

availability and relatively low price of

fossil fuels, coupled with the risks to

potential investors, has limited the

interest in the commercial development

of OTEC projects. Removal of Part 981

at this time will allow NOAA to

evaluate the appropriateness of these, or

any other, regulations at such time as

interest in the commercial development

of OTEC projects occurs.

DATES: Comments on the proposed rule

are invited and will be considered if

submitted in writing to the address

below on or before February 29, 1996.

ADDRESSES: Comments should be

submitted to Karl Jugel, Chief, Ocean

Minerals and Energy Division, Office of

Ocean and Coastal Resource

Management, National Ocean Service,

National Oceanic and Atmospheric

Administration, 1305 East-West

Highway, 11th Floor, Silver Spring, MD

20910.

FOR FURTHER INFORMATION CONTACT:

James Lawless, Deputy Director, Office

of Ocean and Coastal Resource

Management, at (301) 713–3155.

SUPPLEMENTARY INFORMATION:

I. Regulatory Review

The National Oceanic and

Atmospheric Administration (NOAA) is

proposing to remove Part 981 of 15 CFR,

pursuant to the Regulatory Reform

Initiative of President Clinton and the

Ocean Thermal Energy Conversion Act

of 1980, as amended.

In March 1995, President Clinton

issued a directive to federal agencies

regarding their responsibilities under

his Regulatory Reform Initiative. This

initiative is part of the National

Performance Review and calls for

immediate, comprehensive regulatory

reform. The President directed all

agencies to undertake, as part of this

initiative, an exhaustive review of all

their regulations—with an emphasis on

eliminating or modifying those that are

obsolete or otherwise in need of reform.

The Ocean Thermal Energy

Conversion Act of 1980, as amended,

(OTEC Act), 42 U.S.C. §§ 9101 et seq.,

also requires that NOAA periodically

review the regulations that apply to the

licensing of OTEC facilities and
2970 Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules

plantships. The fundamental purpose of

the review is to determine if the

regulations themselves impose an

adverse impact on the development and

commercialization of OTEC technology.

Comments are solicited from all

interested persons on the proposed

removal of Part 981. Comments are in

particular invited on whether the OTEC

regulations, or their removal at this

time, impose an adverse impact on the

development and commercialization of

OTEC technology.

II. Ocean Thermal Energy Conversion

Licensing Program

The principle behind Ocean Thermal

Energy Conversion (OTEC) has been

validated through experimental projects

in the United States and elsewhere.

However, many design and economic

uncertainties remain with regard to a

commercial scale plant.

The OTEC Act established a licensing

and permitting system for the

development of OTEC as a commercial

energy technology. Without a legal

framework, including the site security

and predictability it provides, financing

and insuring commercial OTEC

operations may have been impossible.

The OTEC Act applies to facilities

located in U.S. territorial waters or

connected to the United States by

pipeline or cable. The law also applies

to all OTEC plantships owned or

operated by U.S. citizens and all OTEC

facilities or plantships documented

under U.S. law. The OTEC Act requires

that a person obtain a license from

NOAA in order to own, construct, or

operate such a facility or plantship. The

OTEC Act and the implementing

regulations provide the framework for

the development of a commercial OTEC

industry.

Section 102(a) of the OTEC Act

required NOAA to complete issuance of

final implementing regulations by

August 3, 1981. Section 102(a) also

established certain criteria that the

regulations must satisfy. NOAA is

authorized, consistent with the

purposes and provisions of the OTEC

Act, to amend or rescind the OTEC

regulations. In particular, section 117 of

the OTEC Act requires NOAA to review

the regulations on a periodic basis

NOAA is authorized and directed to

revise the regulations as necessary and

appropriate to ensure that the

regulations do not impede the

development, evolution, and

commercialization of OTEC technology.

After receiving comments from an

advance notice of proposed rulemaking

(45 FR 77038, November 21, 1980),

NOAA proposed to issue minimal OTEC

regulations upon considering three

other approaches: (1) detailed regulation

of OTEC activities, (2) moderate

regulation of OTEC activities, and (3) no

regulations. Under the ‘‘minimum

regulation’’ approach proposed by

NOAA on March 30, 1981 (46 FR

19418–19447), the OTEC licensing

regulations would include only the

general guidelines and performance

standards specified in the OTEC Act.

Detailed guidelines and specifications

would not be provided in advance in

the regulations. They would be

introduced if deemed necessary on a

site-specific, case-by-case basis to

prevent significant adverse effects on

the environment or to prevent other

results contrary to law. The information

submitted to NOAA with an application

would include details of the proposed

site, descriptions of the operating

features of the plan, and assessments of

the potential impacts of construction

and operation. Thus, application for a

license could be made before detailed

design of the OTEC project was

completed. NOAA would examine the

applicant’s assessments of the nature

and potential magnitude of the impacts

from construction and operation of the

proposed project, and analyze in detail

only those impacts that appeared to

pose significant problems.

Under this approach, the incremental

administrative costs to NOAA to process

each application would be relatively

modest. Maximum flexibility would be

afforded OTEC project sponsors.

Most persons who commented on the

proposed OTEC licensing regulations

favored the ‘‘minimum regulation’’

approach as the approach which would

best permit the innovation and

flexibility necessary in the early years of

implementation of a new technology.

See Final Regulatory Impact Analysis

and Final Regulatory Flexibility

Analysis for Regulations to Implement

Public Law 96–320, The Ocean Thermal

Energy Conversion Act of 1980, July

1981, U.S. Dept. of Commerce, NOAA,

Office of Ocean Minerals and Energy.

NOAA’s detailed analysis of potential

regulatory impacts of various licensing

regimes, prepared as part of the

regulation development process,

confirmed that the minimum regulation

approach was the most cost-effective

one that would satisfy the goals of the

OTEC Act. Accordingly, it was adopted

as the basis for the final licensing

regulations issued by NOAA. NOAA

published final regulations

implementing the OTEC Act in the

Federal Register on July 31, 1981 (46 FR

39388–39420). The licensing process

developed by NOAA and specified in

the final regulations was intended to

provide the orderly, timely, and

efficient review of OTEC proposals

envisioned by the drafters of the OTEC

Act.

In 1983 and 1984, NOAA undertook

two reviews of the OTEC license

procedures. Beginning with a notice in

the Federal Register on May 11, 1983

(48 FR 21154–21156), NOAA reviewed

the OTEC regulations to determine if the

regulations themselves imposed an

adverse impact on the development and

commercialization of OTEC technology.

A second review of the regulations was

conducted by NOAA at the request of

the Office of Management and Budget in

accordance with the Paperwork

Reduction Act. Also in 1984, Congress

passed amendments to the OTEC Act.

On November 21, 1985, NOAA

published a proposed rule (50 FR

48097–48099) incorporating the 1984

amendments to the OTEC Act. This

proposed rule reflected NOAA’s

conclusion, as a result of its regulatory

review, that no additional regulatory

modifications were necessary. A final

rule was published in the Federal

Register on June 10, 1986 (51 FR 20958–

20960).

Also in 1985, NOAA published a

Guide to Permits and Regulations

Applicable to Ocean Thermal Energy

Conversion Projects—Hawaii Edition.

This permit guide was prepared in order

to provide OTEC project sponsors with

an overview of potential licenses,

permits and authorizations required by

federal, state and local agencies. It was

intended as a reference guide for

federal, state and local agencies

processing OTEC permit applications.

No applications for licenses of

commercial OTEC facilities or

plantships have yet been received by

NOAA, and there has been a low level

of NOAA activity under the OTEC Act.

Since FY 86, no appropriations have

been requested by the present or past

Administrations, or provided by the

Congress, for NOAA OTEC activities.

NOAA’s last significant OTEC related

activities were limited to the completion

of two research studies in FY 87, both

of which had been funded and initiated

with previous appropriations. One was

the impact of OTEC generated

underwater sound on selected marine

animals, and the second study was on

the socioeconomic effects of an OTEC

plant at Kahe Point, Oahu, Hawaii.

Since that time, NOAA activities have

been limited to responding to occasional

requests for OTEC related technical and

regulatory information. The overall

availability and relatively low price of

fossil fuels, coupled with the risks to

potential investors, has limited the

interest in the commercial development

of OTEC projects.
Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Proposed Rules 2971

Given that a commercial OTEC

industry has yet to develop, Part 981

remains unused for the most part.

Removal of Part 981 at this time is

consistent with the purposes and

provisions of the OTEC Act in that it

will allow NOAA to evaluate the

suitability of these regulations at such

time as interest in the commercial

development of OTEC projects occurs.

At such time, NOAA will issue a

proposed rule appropriate to the then

current regulatory needs. Potential

licensees will therefore be assured that

any future OTEC regulations will be up

to date, and will continue to provide

innovation and flexibility necessary for

an emerging OTEC industry.

NOAA is mindful of its responsibility

for licensing of commercial OTEC

facilities and plantships under the

OTEC Act, however, and will take

appropriate steps to review and process

an application should one be made. For

particular inquiries into the licensing of

OTEC projects in the interim period,

NOAA will provide copies of the

provisions of these OTEC regulations in

response to such inquiries. Thus, NOAA

will provide actual and timely notice of

applicable procedures and requirements

to particular individuals. See 5 U.S.C.

§ 552(a). Accordingly, NOAA is

proposing to remove Part 981, the OTEC

regulations, from Title 15 of the CFR.

III. Miscellaneous Rulemaking

Requirements

Executive Order 12612: Federalism

Assessment

NOAA has concluded that this

regulatory action does not have

federalism implications sufficient to

warrant the preparation of a Federalism

Assessment under Executive Order

12612.

Executive Order 12866: Regulatory

Impact

This proposed rule has been

determined to be not significant for

purposes of Executive Order 12866.

Regulatory Flexibility Act

No licenses have been issued for

OTEC projects under 15 CFR Part 981.

When commercial interest in OTEC

projects occurs, NOAA will issue a

proposed rule appropriate to the

regulatory needs at that time. For

particular inquiries into the licensing of

OTEC projects in the interim period,

NOAA will provide actual and timely

notice of applicable procedures and

requirements to particular individuals.

See 5 U.S.C. § 552(a). For these reasons,

the proposed removal of Part 981 is not

expected to have a significant economic

impact on a substantial number of small

entities, and the Assistant General

Counsel for legislation and Regulation

of the Department of Commerce has so

certified to the Chief Counsel for

Advocacy of the Small Business

Administration. As such, an initial

Regulatory Flexibility Analysis was not

prepared.

Paperwork Reduction Act

This rule does not contain an

information collection requirement

subject to review and approval by OMB

under the Paperwork Reduction Act of

1980, 44 U.S.C. 3500 et seq.

National Environmental Policy Act

NOAA has concluded that this

regulatory action does not constitute a

major federal action significantly

affecting the quality of the human

environment. No applications for

licenses of commercial OTEC facilities

or plantships have yet been received by

NOAA, and Part 981 remains unused for

the most part. When commercial

interest in OTEC projects occurs, NOAA

will issue a proposed rule appropriate to

the regulatory needs at that time. For

particular inquiries into the licensing of

OTEC projects in the interim period,

NOAA will provide actual and timely

notice of applicable procedures to

particular individuals. See 5 U.S.C.

552(a). Therefore, an environmental

impact statement is not required.

Authority: Ocean Thermal Energy

Conversion Act of 1980, as amended, 42

U.S.C. 9101 et seq.

List of Subjects in 15 CFR Part 981

Administrative practice and

procedure, Ocean thermal energy

conversion licensing, Environmental

protection, Marine resources, Penalties,

Reporting and recordkeeping

requirements.

Dated: January 24, 1996.

W. Stanley Wilson,

Assistant Administrator for Ocean Services

and Coastal Zone Management.

Accordingly, for the reasons set forth

above, Chapter IX of Title 15 of the Code

of Federal Regulations is proposed to be

amended as follows:

PART 981—OCEAN THERMAL

ENERGY CONVERSION LICENSING

PROGRAM—[REMOVED]

1. Under the authority of the Ocean

Thermal Energy Conversion Act of 1980,

Part 981 is removed.

[FR Doc. 96–1723 Filed 1–29–96; 8:45 am]

BILLING CODE 3510–22–M

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Parts 201, 208, 314, and 601

[Docket No. 93N–371W]

Prescription Drug Product Labeling;

Public Patient Education Workshop

AGENCY: Food and Drug Administration,

HHS.

ACTION: Notice of a public workshop.

SUMMARY: The Food and Drug

Administration (FDA) is reannouncing a

public patient education workshop to

discuss methods and criteria for

developing and evaluating prescription

drug information for patients.

Previously, in the Federal Register of

December 8, 1995 (60 FR 63049), the

agency announced this workshop which

was scheduled for January 9 and 10,

1996. Due to inclement weather, the

agency was forced to postpone the

workshop. The agency has rescheduled

the workshop for February 14 and 15,

1996. The purpose of this workshop is

to obtain views and opinions

concerning the criteria for useful patient

information, and it is part of FDA’s

ongoing initiative to improve the

distribution of adequate and useful

prescription drug information to

patients. FDA encourages health

professionals, consumer groups, and

other interested parties to participate in

the workshop. FDA also invites the

designers of primary information

systems, which produce either written

information or computer programs that

generate prescription drug patient

information, to display their systems for

educational purposes.

DATES: The public patient education

workshop will be held on February 14

and 15, 1996, from 8:30 a.m. to 5 p.m.

Submit registration notices for

participants by February 9, 1996.

Submit registration notices for designers

of information systems by February 7,

1996. Submit written comments by

March 6, 1996.

ADDRESSES: The public patient

education workshop will be held at the

DoubleTree Hotel, 1750 Rockville Pike,

Rockville, MD. Preregistration for

workshop participants is encouraged,

although not required, in order to

facilitate logistical planning of the

breakout discussion groups. There is no

registration fee for this workshop.

Registration forms can be obtained by

calling 301–443–5470 or writing to the

Office of Health Affairs, ATTN: Patient

Education Workshop, Food and Drug

Administration (HFY–40), 5600 Fishers