Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Rules and Regulations 67063 

(ii) Analysis. Pursuant to § 1.368–2(l), 

Corporation Y will be deemed to issue a 

nominal share of Corporation Y stock to 

Corporation T in addition to the $100 of cash 

actually exchanged for the Corporation T 

assets. Corporation T will be deemed to 

distribute the nominal share of Corporation 

Y stock to Corporation X in addition to the 

$100 of cash actually distributed. 

Corporation X will have a basis of $50 in the 

nominal share of Corporation Y stock under 

section 358(a). However, Corporation X is not 

an actual shareholder of Corporation Y, the 

issuing corporation. Therefore, Corporation X 

cannot designate any share of Corporation Y 

stock under paragraph (a)(2)(iii)(B) of this 

section to which the basis of the nominal 

share of Corporation Y stock will attach and 

Corporation X will be deemed to distribute 

the nominal share of Corporation Y stock to 

Corporation P as required by § 1.368–2(l). 

Corporation X does not recognize the loss on 

the deemed distribution of the nominal share 

to Corporation P under section 311(a). 

Corporation P’s basis in the nominal share it 

receives is zero, its fair market value, under 

section 301(d). Under paragraph (a)(2)(iii)(B) 

of this section, Corporation P must designate 

a share of Corporation Y stock to which the 

nominal share’s zero basis will attach. 

(d) Effective/applicability date. This 

section generally applies to exchanges 

and distributions of stock and securities 

occurring on or after January 23, 2006. 

However, paragraph (a)(2)(iii) and 

Examples 15 and 16 of paragraph (c) of 

this section apply to exchanges and 

distributions of stock and securities 

occurring on or after November 12, 

2014. See § 1.358–2T(a)(2)(iii) and 

§ 1.358–2T(c), Examples 15 and 16, as 

contained in 26 CFR part 1, revised 

April 1, 2014, for exchanges and 

distributions of stock and securities 

occurring on or after November 21, 2011 

and before November 12, 2014; see 

§ 1.358–2(a)(2)(iii), as contained in 26 

CFR part 1, revised as of April 1, 2011, 

for exchanges and distributions of stock 

and securities occurring on or after 

January 23, 2006 and before November 

21, 2011. 

§ 1.358–2T [Removed] 

■ Par. 3. Section 1.358–2T is removed. 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: October 17, 2014. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2014–26780 Filed 11–10–14; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2014–0693] 

RIN 1625–AA00 

Safety Zone, Elizabeth River; 

Portsmouth, VA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a safety zone on the 

navigable waters of the Elizabeth River 

in Portsmouth, VA for 12 periods of 48 

hours beginning at midnight on January 

5, January 12, January 19, January 22, 

January 27, February 9, March 2, March 

5, March 10, March 23, March 30 and 

April 6, 2015. This action will restrict 

vessel traffic movement in the 

designated area during construction of 

the new Midtown Tunnel. This action is 

necessary to protect the life and 

property of the maritime public due to 

the number of work vessels in the 

designated area and their lack of 

maneuverability while engaged in 

construction operations. 

DATES: This rule will be effective from 

January 5, 2015, through April 6, 2015. 

This rule will be enforced for 12 periods 

of 48 hours in length, beginning at 

midnight on January 5, January 12, 

January 19, January 22, January 27, 

February 9, March 2, March 5, March 

10, March 23, March 30, and April 6, 

2015. 

ADDRESSES: Documents mentioned in 

this preamble are part of docket [USCG– 

2014–0693]. To view documents 

mentioned in this preamble as being 

available in the docket, go to http://

www.regulations.gov, type the docket 

number in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rulemaking. You may also visit the 

Docket Management Facility in Room 

W12–140 on the ground floor of the 

Department of Transportation West 

Building, 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 or 

email LCDR Gregory Knoll, Waterways 

Management Division Chief, Sector 

Hampton Roads, Coast Guard; telephone 

(757)-668–5580, email 

HamptonRoadsWaterway@uscg.mil. If 

you have questions on viewing or 

submitting material to the docket, call 

Cheryl Collins, Program Manager, 

Docket Operations, telephone (202)– 

366–9826. 

SUPPLEMENTARY INFORMATION: 

Table of Acronyms 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of Proposed Rulemaking 

A. Regulatory History and Information 

SKW Constructors are building a 

second span for the Midtown Tunnel 

between Portsmouth and Norfolk, VA 

and will be conducting operations that 

require closures of the federal channel 

beginning in January 2015. A Notice of 

Proposed Rulemaking (NPRM) was 

published on August 25, 2014 in the 

Federal Register (79 FR 50571). 

The Coast Guard received one 

comment on the NPRM, which is 

addressed below in Section C. No 

request for a public meeting was 

received, and no meeting was held. 

B. Basis and Purpose 

The legal basis for the rule is the 

Coast Guard’s authority to establish 

regulated navigation areas and other 

limited access areas: 33 U.S.C. 1231; 46 

U.S.C. Chapter 701, 3306, 3703; 50 

U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, 

6.04–6, 160.5; Public Law 107–295, 116 

Stat. 2064; Department of Homeland 

Security Delegation No. 0170.1. 

Due to increased vehicle traffic in the 

Hampton Roads area, SKW 

Constructors, in concert with Elizabeth 

River Crossings and the Virginia 

Department of Transportation, is 

constructing a second tunnel parallel to 

the existing Midtown Tunnel between 

Portsmouth and Norfolk, VA. The 

construction will involve submerging 

elements of the new Midtown Tunnel. 

The presence of working vessels and the 

inability to maneuver submerged 

equipment necessitate closures of the 

federal channel. The closures will be in 

effect for 12 48-hour periods to allow 

SKW Constructors to install the 

segments of the tunnel that overlap the 

federal channel. 

The Coast Guard is establishing a 

safety zone in the portion of the 

Elizabeth River between Elizabeth River 

Channel Buoy 31 (LLNR 9835) and 

Elizabeth River Channel Buoy 34 (LLNR 

9855). The first of the 12 scheduled 

closures will begin at midnight on 

January 5, 2015; the final scheduled 

closure will begin at midnight on April 

6, 2015. The dates and hours are subject 

to change due to weather, scheduling 

conflicts, equipment failure and other 

unforeseen factors. Any changes to these 

dates will be listed in the Federal 


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67064 Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Rules and Regulations 

Register if time permits, and in all cases 

will be communicated via marine 

information broadcasts. 

C. Discussion of Comments, Changes, 

and the Final Rule 

The Coast Guard received one 

comment expressing concern about the 

lengths of the closures and the 

economic impact on business 

operations. The comment also requested 

a working group of industry members 

and the Coast Guard to determine the 

potential impact of the closures. No 

formal working group was assigned, but 

the Coast Guard and SKW participated 

in extensive dialogues over several years 

with a wide range of port partners and 

interested parties including, but not 

limited to, the Virginia Maritime 

Association, Virginia Pilots Association, 

Association of Virginia Docking Pilots, 

Independent Docking Pilots, and U.S. 

Navy. In addition to being discussed at 

meetings exclusively pertaining to the 

Midtown Tunnel, the topic has been on 

the agenda at multiple Area Maritime 

Security Committee and Maritime 

Transportation System Planning 

Subcommittee meetings, at which port 

partners, including industry 

representatives, were afforded the 

opportunity to discuss the potential 

impact of the closures. 

The decision to close the channel for 

12 periods of 48 hours in length comes 

as a result of these extensive and 

widespread discussions, which have 

been occurring since the earliest 

proposals for the project in 2007. Every 

effort has been made to reduce the 

length of time the channel is closed and 

any adverse impacts resulting 

therefrom. Based on these efforts, it was 

determined that 12 closures of 48 hours 

in length constitutes the best available 

means to complete the project. Further, 

12 separate closures, rather than one 

extended closure, will enable SKW to 

complete the work while enabling traffic 

to flow between the closure periods, 

making it the least burdensome and best 

available plan. 

The NPRM published on August 25, 

2014 stated that the first channel closure 

would begin on January 1, 2015. The 

first closure will actually begin on 

January 5, 2015 at midnight. This 

change is reflected in the instant Final 

Rule. 

The Captain of the Port of Hampton 

Roads is establishing a safety zone in 

the portion of the Elizabeth River 

between Elizabeth River Channel Buoy 

31 (LLNR 9835) and Elizabeth River 

Channel Buoy 34 (LLNR 9855). The 

zone will be effective for 12 periods of 

48 hours in length, with each respective 

period beginning at midnight on January 

5, January 12, January 19, January 22, 

January 27, February 9, March 2, March 

5, March 10, March 23, March 30 and 

April 6, 2015. The dates and hours are 

subject to change due to weather, 

scheduling conflicts, equipment failure 

and other unforeseen factors. Any 

changes to these dates will be listed in 

the Federal Register if time permits, and 

in all cases will be communicated via 

marine information broadcasts. No 

person or vessel may enter or remain in 

the regulated area unless authorized by 

the Captain of the Port, Hampton Roads 

or his designated Representative. 

D. Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

executive orders related to rulemaking. 

Below we summarize our analyses 

based on these statutes or executive 

orders. 

1. Regulatory Planning and Review 

This rule is not a significant 

regulatory action under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review, as supplemented 

by Executive Order 13563, Improving 

Regulation and Regulatory Review, and 

does not require an assessment of 

potential costs and benefits under 

section 6(a)(3) of Executive Order 12866 

or under section 1 of Executive Order 

13563. The Office of Management and 

Budget has not reviewed it under those 

orders. Although this regulation restricts 

access to the safety zone, the effect of 

this rule will not be significant because: 

(i) the safety zone will be in effect for 

a limited duration; (ii) the zone is of 

limited size; and (iii) the Coast Guard 

will make notifications via maritime 

advisories so mariners can adjust their 

plans accordingly. 

2. Impact on Small Entities 

The Regulatory Flexibility Act of 1980 

(RFA), 5 U.S.C. 601–612, as amended, 

requires federal agencies to consider the 

potential impact of regulations on small 

entities during rulemaking. 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. 

The rule may affect the following 

entities, some of which might be small 

entities: the owners or operators of 

vessels intending to transit or anchor in 

the specified portion of the Elizabeth 

River during the specified dates and 

times. 

This safety zone will not have a 

significant economic impact on a 

substantial number of small entities for 

the following reasons: (i) The safety 

zone will only be in place for a limited 

duration; and (ii) before the enforcement 

period, maritime advisories will be 

issued allowing mariners to adjust their 

plans accordingly. 

3. Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

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

we want to assist small entities in 

understanding this rule. If the rule 

would affect your small business, 

organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance, please contact the person 

listed in the FOR FURTHER INFORMATION

CONTACT, above. 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. 

4. Collection of Information 

This rule will not call for a new 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520). 

5. 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. 

6. Protest Activities 

The Coast Guard respects the First 

Amendment rights of protesters. 

Protesters are asked to contact the 

person listed in the FOR FURTHER

INFORMATION CONTACT section to 

coordinate protest activities so that your 

message can be received without 


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Federal Register / Vol. 79, No. 218 / Wednesday, November 12, 2014 / Rules and Regulations 67065 

jeopardizing the safety or security of 

people, places or vessels. 

7. 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 an expenditure, 

we do discuss the effects of this rule 

elsewhere in this preamble. 

8. Taking of Private Property 

This rule will not affect a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630, Governmental Actions and 

Interference with Constitutionally 

Protected Property Rights. 

9. 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. 

10. 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. 

11. 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. 

12. Energy Effects 

This action is not a ‘‘significant 

energy action’’ under Executive Order 

13211, Actions Concerning Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use. 

13. Technical Standards 

This rule does not use technical 

standards. Therefore, we did not 

consider the use of voluntary consensus 

standards. 

14. 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 determined this action is one of a 

category of actions which do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule involves 

establishing a safety zone. This rule is 

categorically excluded from further 

review under paragraph (34)(g) of Figure 

2–1 of the Commandant Instruction. An 

environmental analysis checklist 

supporting this determination and a 

Categorical Exclusion Determination are 

available in the docket where indicated 

under ADDRESSES. We seek any 

comments or information that may lead 

to the discovery of a significant 

environmental impact from this rule. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, and 

Waterways. 

For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 33 U.S.C. 1231; 46 U.S.C. 

Chapter 701; 3306, 3703; 50 U.S.C. 191, 195; 

33 CFR 1.05–1, 6.04–1, 6.04–6 and 160.5; 

Pub. L. 107–295, 116 Stat. 2064; Department 

of Homeland Security Delegation No. 0170.1 

■ 2. Add § 165.T05–0693 to read as 

follows: 

§ 165.T05–0693 Safety Zone, Elizabeth 

River; Portsmouth, VA. 

(a) Definitions. For the purposes of 

this section, Captain of the Port means 

the Commander, Sector Hampton Roads. 

Representative means any Coast Guard 

commissioned, warrant or petty officer 

who has been authorized to act on the 

behalf of the Captain of the Port. 

(b) Location. The following area is a 

safety zone: specified waters of the 

Captain of the Port Sector Hampton 

Roads zone, as defined in 33 CFR 3.25– 

10: the marked channel of the Elizabeth 

River between Elizabeth River Channel 

Buoy 31 (LLNR 9835) and Elizabeth 

River Channel Buoy 34 (LLNR 9855). 

(c) Regulations. (1) In accordance with 

the general regulations in § 165.23 of 

this part, entry into this zone is 

prohibited unless authorized by the 

Captain of the Port, Hampton Roads or 

his designated Representative. 

(2) The operator of any vessel in the 

immediate vicinity of this safety zone 

shall: 

(i) Contact on scene contracting 

vessels via VHF channel 13 and 16 for 

passage instructions. 

(ii) If on scene proceed as directed by 

any commissioned, warrant or petty 

officer on shore or on board a vessel that 

is displaying a U.S. Coast Guard Ensign. 

(3) The Captain of the Port, Hampton 

Roads can be reached through the Sector 

Duty Officer at Sector Hampton Roads 

in Portsmouth, Virginia at telephone 

number (757) 668–5555. 

(4) The Coast Guard Representatives 

enforcing the safety zone can be 

contacted on VHF–FM marine band 

radio channel 13 (165.65Mhz) and 

channel 16 (156.8 Mhz). 

(d) Enforcement Period. This section 

will be enforced for 12 periods of 48 

hours in length beginning at midnight 

on January 5, January 12, January 19, 

January 22, January 27, February 9, 

March 2, March 5, March 10, March 23, 

March 30 and April 6, 2015. Any 

deviations from these times willbe 

communicated via marine information 

broadcasts. 

Dated: October 17, 2014. 

Christopher S. Keane, 

Captain, U.S. Coast Guard, Captain of the 

Port Hampton Roads. 

[FR Doc. 2014–26670 Filed 11–10–14; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2014–0784] 

RIN 1625–AA00 

Safety Zone; Natchez Specialties New 

Year’s Eve Firework Display, Lower 

Mississippi River, Mile Marker, (MM) 

363.5 to 364.5 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary Safety Zone for 

all waters of the Lower Mississippi 

River, from MM 363.5 to MM 364.5. 

This safety zone is needed to protect 

persons and vessels from the potential 

safety hazards associated with a 

fireworks display. Entry into this zone 

is prohibited to all vessels, mariners, 

and persons unless specifically 


wreier-aviles on DSK5TPTVN1PROD with RULES