25618 Federal Register / Vol. 74, No. 102 / Friday, May 29, 2009 / Rules and Regulations 

1The ‘‘enhanced driver’s license or identification 

document’’ may be in one of two forms, as decided 

by the issuing authority, provided that the 

document (card) denotes identity and citizenship 

and meets technical requirements: (1) An enhanced 

driver’s license or (2) an enhanced identity card. 

The designation ‘‘EDL’’ covers both documents. 

2For a province of Canada, the agreement will be 

between DHS/CBP and the Canada Border Services 

Agency working with and representing the 

province. 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

8 CFR Part 235 

[CBP Dec. 09–18] 

Western Hemisphere Travel Initiative: 

Designation of Enhanced Driver’s 

Licenses and Identity Documents 

Issued by the States of Vermont and 

Michigan and the Provinces of Quebec, 

Manitoba, British Columbia, and 

Ontario as Acceptable Documents To 

Denote Identity and Citizenship 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 

ACTION: Notice. 

SUMMARY: This document announces 

that the Commissioner of U.S. Customs 

and Border Protection is designating 

enhanced driver’s licenses and 

identification documents issued by the 

States of Vermont and Michigan and the 

Canadian Provinces of Quebec, 

Manitoba, British Columbia, and 

Ontario as acceptable documents for 

purposes of the Western Hemisphere 

Travel Initiative. These documents may 

be used to denote identity and 

citizenship of, as appropriate, U.S. or 

Canadian citizens entering the United 

States from within the Western 

Hemisphere at land and sea ports of 

entry. 

DATES: This designation is effective on 

June 1, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Colleen Manaher, Western Hemisphere 

Travel Initiative, U.S. Customs and 

Border Protection, 1300 Pennsylvania 

Avenue, NW., Washington, DC 20229, 

202–344–1220. 

SUPPLEMENTARY INFORMATION: 

Background 

The Western Hemisphere Travel 

Initiative 

The Intelligence Reform and 

Terrorism Prevention Act of 2004 

(IRTPA), Public Law 108–458, 118 Stat. 

3638 (Dec. 17, 2004), as amended, 

provides that upon full implementation, 

U.S. citizens and Bermudian, Canadian, 

and Mexican nationals will be required 

to present a passport or such alternative 

documents as the Secretary of 

Homeland Security (Secretary) 

designates as satisfactorily establishing 

identity and citizenship when entering 

the United States. See 8 U.S.C. 1185 

note. On April 3, 2008, the Department 

of Homeland Security (DHS) and the 

Department of State (DOS) promulgated 

a joint final rule, effective on June 1, 

2009, that implements the Western 

Hemisphere Travel Initiative (WHTI) at 

U.S. land and sea ports of entry. See 73 

FR 18384 (the land and sea final rule). 

The land and sea final rule specifies the 

documents that U.S. citizens and 

nonimmigrant aliens from Canada, 

Bermuda, and Mexico will be required 

to present when entering the United 

States at land and sea ports of entry 

from within the Western Hemisphere 

(which includes contiguous territories 

and adjacent islands of the United 

States). 

Under the land and sea final rule, one 

type of citizenship and identity 

document that U.S. or Canadian citizens 

may present upon entry to the United 

States is an enhanced driver’s license or 

identification document 1 (EDL) 

designated as an acceptable document 

to denote identity and citizenship by the 

Secretary, pursuant to section 7209 of 

IRTPA, as amended. Section 235.1(d) of 

title 8 of the Code of Federal 

Regulations (CFR), as amended by the 

WHTI land and sea final rule, states: 

Upon the designation by the Secretary of 

Homeland Security of an enhanced driver’s 

license as an acceptable document to denote 

identity and citizenship for purposes of 

entering the United States, U.S. citizens and 

Canadians may be permitted to present these 

documents in lieu of a passport upon 

entering or seeking admission to the United 

States according to the terms of the 

agreements entered between the Secretary of 

Homeland Security and the entity. The 

Secretary of Homeland Security will 

announce, by publication of a notice in the 

Federal Register, documents designated 

under this paragraph. A list of designated 

documents will also be made available to the 

public. 

EDL Programs 

DHS is committed to working with 

the various States of the United States 

and the Government of Canada to 

facilitate the development of State and 

province-issued EDLs as travel 

documents that denote identity and 

citizenship. To establish an EDL 

program, each State or province 2 must 

enter into an agreement with DHS or 

U.S. Customs and Border Protection 

(CBP) to develop an acceptable EDL 

document. Each EDL program is specific 

to each State or province based on 

specific factors, such as the State’s or 

province’s funding, technology, and 

other developments and 

implementation factors. Acceptable EDL 

documents must have compatible 

technology and security criteria, and 

must respond to CBP’s operational 

concerns. The EDL must include 

technologies that facilitate inspection at 

ports of entry. EDL documents also must 

be issued via a secure process and 

include technology that facilitates travel 

to satisfy WHTI requirements. 

On an ongoing basis, DHS will 

announce, by publication of a notice in 

the Federal Register, that a State’s and/ 

or province’s EDL has been designated 

as a WHTI-compliant document for 

purposes of entering the United States 

by land or sea from within the Western 

Hemisphere. (See the designations at 73 

FR 18421 (April 3, 2008) for EDLs 

issued by the State of Washington and 

at 73 FR 73343 (December 2, 2008) for 

EDLs issued by the State of New York.) 

DHS will make available to the public 

a list of the documents designated as 

WHTI compliant. A list of States and 

provinces that issue EDLs is available at 

http://www.getyouhome.gov. The 

Secretary delegated to the 

Commissioner of CBP the authority to 

designate certain documents as 

acceptable border crossing documents 

for persons arriving in the United States 

by land or sea from within the Western 

Hemisphere, including State-specific 

enhanced driver’s licenses and identity 

documents and Canadian provincespecific enhanced driver’s licenses and 

identity documents. 

Vermont EDL Program 

Vermont has established a voluntary 

program to develop enhanced driver’s 

licenses and identification cards (EDLs) 

that would denote identity and U.S. 

citizenship. On September 26, 2007, 

DHS and the State of Vermont signed a 

Memorandum of Agreement (MOA) to 

develop, issue, test, and evaluate EDLs 

with facilitative technology to be used 

for border crossing purposes. On 

February 15, 2008, CBP approved the 

plan outlining the business process for 

the implementation of the Vermont EDL 

program. Under the terms of this MOA 

and business plan, Vermont EDLs will 

be issued only to Vermont residents that 

can establish both identity and U.S. 

citizenship. 

Following successful field and 

technical testing, the Commissioner of 

CBP has determined that the EDLs 

issued by the State of Vermont 

according to the terms of the above 

agreement and business plan meet the 

requirements of section 7209 of the 

IRTPA and are acceptable documents to 


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Federal Register / Vol. 74, No. 102 / Friday, May 29, 2009 / Rules and Regulations 25619 

denote identity and U.S. citizenship for 

purposes of entering the United States at 

land and sea ports of entry from within 

the Western Hemisphere under the final 

rule. 

Michigan EDL Program 

Michigan has established a voluntary 

program to develop enhanced driver’s 

licenses and identification cards (EDLs) 

that would denote identity and U.S. 

citizenship. On October 13, 2008, DHS 

and the State of Michigan signed a 

Memorandum of Agreement (MOA) to 

develop, issue, test, and evaluate EDLs 

with facilitative technology to be used 

for border crossing purposes. On the 

same date, CBP and the State of 

Michigan reached agreement on the 

plan outlining the business process for 

the implementation of the Michigan 

EDL program. Under the terms of this 

MOA and business plan, Michigan EDLs 

will be issued only to Michigan 

residents that can establish both identity 

and U.S. citizenship. 

Following successful field and 

technical testing, the Commissioner of 

CBP has determined that the EDLs 

issued by the State of Michigan 

according to the terms of the above 

agreement and business plan meet the 

requirements of section 7209 of the 

IRTPA and are acceptable documents to 

denote identity and U.S. citizenship for 

purposes of entering the United States at 

land and sea ports of entry from within 

the Western Hemisphere under the final 

rule. 

Quebec EDL Program 

The Province of Quebec has 

established a voluntary program to 

develop an enhanced driver’s license 

that would denote identity and 

Canadian citizenship. On April 1, 2008, 

CBP and the Canada Border Services 

Agency (CBSA) entered into a 

Memorandum of Understanding 

Regarding the Use, Disclosure and 

Storage of Canadian Enhanced Driver’s 

License Information relating to CBP’s 

access to EDL information for 

documents, including the Quebec EDL 

for border crossing purposes. On 

January 16, 2009, following negotiations 

between CBP and the Canadian and 

Quebec governments in November 2008, 

the CBSA and Citizenship and 

Immigration Canada transmitted to CBP 

the Province of Quebec’s official 

business plan outlining the approach 

and process by which the Socie ́te ́ de 

l’assurance automobile du Que ́bec 

(SAAQ) will make available enhanced 

driver’s licenses and identification cards 

to qualified Canadian citizens residing 

in the Province of Quebec. On February 

2, 2009, CBP determined that, 

contingent upon successful technical 

testing, SAAQ Driver’s Licenses Plus 

produced in accordance with the 

Province of Quebec’s business plan 

were anticipated to be designated as 

documents denoting identity and 

Canadian citizenship for purposes of 

entering the United States by land or 

sea. 

Following successful field and 

technical testing, the Commissioner of 

CBP has determined that Driver’s 

Licenses Plus issued by the Province of 

Quebec according to the terms of the 

business plan approved by CBP meet 

the requirements of section 7209 of the 

IRTPA and are acceptable documents to 

denote identity and Canadian 

citizenship for purposes of entering the 

United States at land and sea ports of 

entry from within the Western 

Hemisphere under the final rule. 

Manitoba EDL Program 

The Province of Manitoba has 

established a voluntary program to 

develop enhanced driver’s licenses and 

identification cards (EDLs) that would 

denote identity and Canadian 

citizenship. On April 1, 2008, CBP and 

the CBSA entered into a Memorandum 

of Understanding Regarding the Use, 

Disclosure and Storage of Canadian 

Enhanced Driver’s License Information 

relating to CBP’s access to EDL 

information for documents, including 

the Manitoba EDL for border crossing 

purposes. On June 12, 2008, following 

negotiations between CBP and the 

Canadian and Manitoba governments, 

the CBSA and Citizenship and 

Immigration Canada transmitted to CBP 

the Province of Manitoba’s official 

business plan outlining the approach 

and process by which Manitoba will 

make available EDLs to qualified 

Canadian citizens residing in the 

Province of Manitoba. On July 3, 2008, 

CBP determined that, contingent upon 

successful technical testing, Manitoba 

EDLs produced in accordance with the 

Province of Manitoba’s business plan 

were anticipated to be designated as 

documents denoting identity and 

Canadian citizenship for purposes of 

entering the United States by land or 

sea. 

Following successful field and 

technical testing, the Commissioner of 

CBP has determined that the EDLs 

issued by the Province of Manitoba 

according to the terms of the business 

plan approved by CBP meet the 

requirements of section 7209 of the 

IRTPA and are acceptable documents to 

denote identity and Canadian 

citizenship for purposes of entering the 

United States at land and sea ports of 

entry from within the Western 

Hemisphere under the final rule. 

British Columbia EDL Program 

The Province of British Columbia has 

established a voluntary program to 

develop enhanced driver’s licenses and 

identification cards (EDLs) that would 

denote identity and Canadian 

citizenship. On April 1, 2008, CBP and 

the CBSA entered into a Memorandum 

of Understanding Regarding the Use, 

Disclosure and Storage of Canadian 

Enhanced Driver’s License Information 

relating to CBP’s access to EDL 

information for documents, including 

the British Columbia EDL for border 

crossing purposes. On April 9, 2009, 

following negotiations between CBP and 

the Canadian and British Columbia 

governments, the CBSA and Citizenship 

and Immigration Canada transmitted to 

CBP the Province of British Columbia’s 

official business plan outlining the 

approach and process by which British 

Columbia will make available EDLs to 

qualified Canadian citizens residing in 

the Province of British Columbia. On 

April 16, 2009, CBP determined that, 

contingent upon successful technical 

testing, British Columbia’s EDLs 

produced in accordance with the 

province’s business plan were 

anticipated to be designated as 

documents denoting identity and 

Canadian citizenship for purposes of 

entering the United States by land or 

sea. 

Following successful field and 

technical testing, the Commissioner of 

CBP has determined that the EDLs 

issued by the Province of British 

Columbia according to the terms of the 

business plan approved by CBP meet 

the requirements of section 7209 of the 

IRTPA and are acceptable documents to 

denote identity and Canadian 

citizenship for purposes of entering the 

United States at land and sea ports of 

entry from within the Western 

Hemisphere under the final rule. 

Ontario EDL Program 

The Province of Ontario has 

established a voluntary program to 

develop enhanced driver’s licenses and 

identification cards (EDLs). On April 1, 

2008, CBP and CBSA entered into a 

Memorandum of Understanding 

Regarding the Use, Disclosure and 

Storage of Canadian Enhanced Driver’s 

License Information relating to CBP’s 

access to EDL information for 

documents, including the Ontario EDL 

for border crossing purposes. On May 6, 

2009, following negotiations between 

the parties, CBSA transmitted to CBP 

the Province of Ontario’s official 

business plan outlining the approach 


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25620 Federal Register / Vol. 74, No. 102 / Friday, May 29, 2009 / Rules and Regulations 

1Section 19(b)(1)(A) defines ‘‘depository 

institution’’ as ‘‘(i) any insured bank as defined in 

section 3 of the Federal Deposit Insurance Act or 

any bank which is eligible to make application to 

become an insured bank under section 5 of such 

Act; (ii) any mutual savings bank as defined in 

section 3 of the Federal Deposit Insurance Act or 

any bank which is eligible to make application to 

become an insured bank under section 5 of such 

Act; (iii) any savings bank as defined in section 3 

of the Federal Deposit Insurance Act or any bank 

which is eligible to make application to become an 

insured bank under section 5 of such Act; (iv) any 

insured credit union as defined in section 101 of 

the Federal Credit Union Act or any credit union 

which is eligible to make application to become an 

insured credit union pursuant to section 201 of 

such Act; (v) any member as defined in section 2 

of the Federal Home Loan Bank Act; [and] (vi) any 

savings association (as defined in section 3 of the 

Federal Deposit Insurance Act) which is an insured 

depository institution (as defined in such Act) or is 

eligible to apply to become an insured depository 

institution under the Federal Deposit Insurance 

Act.’’ 12 U.S.C. 461(b)(1)(A). 

2Federal Reserve Act section 19(b)(12)(C), 12 

U.S.C. 461(b)(12)(C). 

3Federal Reserve Act section 19(b)(12), 12 U.S.C. 

461(b)(12). 

4 12 CFR 204.5(a)(1) (formerly 12 CFR 

204.3(b)(1)). 

5The 2006 Act amended section 19 of the Act to 

authorize member banks to enter into pass-through 

account arrangements. Prior to the 2006 Act, only 

nonmember banks were authorized to enter into 

such arrangements. As published in today’s Federal 

and process by which Ontario will make 

available EDLs to qualified Canadian 

citizens residing in the Province of 

Ontario. On May 11, 2009, CBP 

determined that, contingent upon 

successful technical testing, Ontario 

EDL’s produced in accordance with the 

Province of Ontario’s business plan 

were anticipated to be designated as 

documents denoting identity and 

Canadian citizenship for purposes of 

entering the United States by land or 

sea. 

Following successful field and 

technical testing, the Commissioner of 

CBP has determined that the EDLs 

issued by the Province of Ontario 

according to the terms of the business 

plan approved by CBP meet the 

requirements of section 7209 of the 

IRTPA and are acceptable documents to 

denote identity and Canadian 

citizenship for purposes of entering the 

United States at land and sea ports of 

entry from within the Western 

Hemisphere under the final rule. 

Designation 

This notice announces that the 

Commissioner of CBP has designated 

the EDLs issued by the States of 

Vermont and Michigan and the 

Provinces of Quebec, Manitoba, British 

Columbia, and Ontario as acceptable 

documents to denote identity and 

citizenship for purposes of entering the 

United States at land and sea ports of 

entry from within the Western 

Hemisphere, pursuant to section 7209 of 

IRTPA and the final rule, 8 CFR 235.1(d) 

Dated: May 20, 2009. 

Jayson P. Ahern, 

Acting Commissioner, Customs and Border 

Protection. 

[FR Doc. E9–12513 Filed 5–28–09; 8:45 am] 

BILLING CODE 9111–14–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 204 

[Regulation D; Docket Nos. R–1334 and 

R–1350] 

Reserve Requirements for Depository 

Institutions 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: The Board is adopting, with 

certain revisions, its interim final rule 

that amended Regulation D (Reserve 

Requirements of Depository Institutions) 

to direct Federal Reserve Banks to pay 

interest on certain balances held at 

Federal Reserve Banks by or on behalf 

of certain depository institutions. The 

Board is also amending Regulation D to 

authorize the establishment of limitedpurpose accounts, called ‘‘excess 

balance accounts,’’ at Federal Reserve 

Banks for the maintenance of excess 

balances of eligible institutions. These 

excess balance accounts are intended to 

permit eligible institutions to earn 

interest on their excess balances without 

significantly disrupting established 

business relationships with their 

correspondents. 

DATES: This final rule is effective July 2, 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Sophia H. Allison, Senior Counsel (202/ 

452–3565), or Dena L. Milligan, 

Attorney (202/452–3900), Legal 

Division, or Seth Carpenter, Deputy 

Associate Director (202/452–2385), or 

Margaret Gillis DeBoer, Section Chief 

(202/452–3139), Division of Monetary 

Affairs; for information with respect to 

the clearing balance policy and float 

calculations, contact Jonathan Mueller, 

Senior Financial Analyst (202/530– 

6291), Division of Reserve Bank 

Operations and Payment Systems; for 

users of Telecommunications Device for 

the Deaf (TDD) only, contact 202/263– 

4869; Board of Governors of the Federal 

Reserve System, 20th and C Streets, 

NW., Washington, DC 20551. 

SUPPLEMENTARY INFORMATION: 

I. Interest on Balances at Federal 

Reserve Banks 

A. Background 

For monetary policy purposes, section 

19 of the Federal Reserve Act (‘‘the 

Act’’) imposes reserve requirements on 

certain types of deposits and other 

liabilities of depository institutions. 

Title II of the Financial Services 

Regulatory Relief Act of 2006 (the ‘‘2006 

Act’’) (Pub. L. 109–351, 120 Stat. 1966 

(Oct. 13, 2006)) amended section 19 of 

the Act by authorizing the Federal 

Reserve Banks (‘‘Reserve Banks’’) to pay 

earnings on balances maintained at the 

Reserve Banks by or on behalf of certain 

depository institutions. The original 

effective date of this authority was 

October 1, 2011. Section 128 of the 

Emergency Economic Stabilization Act 

of 2008 (the ‘‘2008 Act’’) (Pub. L. 110– 

343, 122 Stat. 3765 (Oct. 3, 2008)) 

accelerated the effective date of this 

authority to October 1, 2008. 

Section 19 of the Act now provides 

that Reserve Banks may pay earnings on 

balances held at the Reserve Banks by 

or on behalf of certain depository 

institutions at least once each quarter at 

a rate not to exceed the general level of 

short-term interest rates. Depository 

institutions that are eligible to receive 

earnings on their balances held at 

Reserve Banks include the institutions 

described in section 19(b)(1)(A) of the 

Act 1 and ‘‘any trust company, 

corporation organized under section 

25A or having an agreement with the 

Board under section 25, or any branch 

or agency of a foreign bank (as defined 

in section 1(b) of the International 

Banking Act of 1978).’’ 2 The Act also 

provides that the Board may prescribe 

regulations concerning the payment of 

earnings, the distribution of earnings to 

the depository institutions that maintain 

balances or on whose behalf balances 

are maintained, and ‘‘the 

responsibilities of depository 

institutions, Federal Home Loan Banks, 

and the National Credit Union 

Administration Central Liquidity 

Facility with respect to the crediting 

and distribution of earnings attributable 

to balances maintained * * * in a 

Federal Reserve bank by any such entity 

on behalf of depository institutions.’’ 3

Regulation D, which implements the 

provisions of section 19 of the Act, also 

provides that a depository institution 

must maintain its required reserves in 

the form of cash in its vault, or if vault 

cash is insufficient, in the form of a 

balance in an account at a Reserve 

Bank.4 A depository institution may 

maintain balances at a Reserve Bank in 

an account in its own name, or it may 

choose another institution as its ‘‘passthrough correspondent.’’ 5 Under a 


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