Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations 48195 

DEPARTMENT OF EDUCATION 

34 CFR Parts 668, 674, 682, and 685 

Federal Student Aid Programs 

(Student Assistance General 

Provisions, Federal Perkins Loan 

Program, Federal Family Education 

Loan Program, and the Federal Direct 

Loan Program) 

AGENCY: Office of Postsecondary 

Education, Department of Education. 

ACTION: Updated waivers and 

modifications of statutory and 

regulatory requirements; republication. 

SUMMARY: On September 29, 2017, the 

Secretary published a document in the 

Federal Register announcing the 

updated waivers and modifications of 

statutory and regulatory requirements 

governing the Federal student financial 

aid programs under the authority of the 

Higher Education Relief Opportunities 

for Students Act of 2003 (HEROES Act). 

We are republishing this document to 

include the definitions of certain terms 

used in this document. We have made 

no changes to the waivers and 

modifications. 

DATES: The waivers and modifications 

began on September 29, 2017. The 

waivers and modifications in this 

document expire on September 30, 

2022. 

FOR FURTHER INFORMATION CONTACT: For 

provisions related to the title IV loan 

programs (Federal Perkins Loan 

Program, Federal Family Education 

Loan (FFEL) Program, and Federal 

Direct Loan (Direct Loan) Program): 

Barbara Hoblitzell, U.S. Department of 

Education, 400 Maryland Ave. SW., 

Room 6W253, Washington, DC 20202. 

Telephone: (202) 453–7583 or by email: 

Barbara.Hoblitzell@ed.gov or Brian 

Smith, U.S. Department of Education, 

400 Maryland Ave. SW., Room 7E222, 

Washington, DC 20202. Telephone: 

(202) 453–7440 or by email: 

Brian.Smith@ed.gov. For other 

provisions: Wendy Macias, U.S. 

Department of Education, 400 Maryland 

Ave. SW., Room 6C111, Washington, DC 

20202. Telephone: (202) 203–9155 or by 

email: Wendy.Macias@ed.gov. 

If you use a telecommunications 

device for the deaf (TDD) or text 

telephone (TTY), call the Federal Relay 

Service (FRS), toll free, at 1–800–877– 

8339. 

Individuals with disabilities can 

obtain this document in an accessible 

format (e.g., Braille, large print, 

audiotape, or compact disc) by 

contacting Wendy Macias, U.S. 

Department of Education, 400 Maryland 

Ave. SW., Room 6C111, Washington, DC 

20202. Telephone: (202) 203–9155 or by 

email: Wendy.Macias@ed.gov. 

SUPPLEMENTARY INFORMATION: On 

September 29, 2017 (82 FR 45465), the 

Secretary published a document in the 

Federal Register announcing the 

updated waivers and modifications. We 

are republishing this document to 

include the definitions of certain terms 

used in this document. We have made 

no changes to the waivers and 

modifications. 

In a document published in the 

Federal Register on December 12, 2003 

(68 FR 69312), the Secretary exercised 

the authority under the HEROES Act 

(Pub. L. 108–76, 20 U.S.C. 1098bb(b)) 

and announced waivers and 

modifications of statutory and 

regulatory provisions designed to assist 

‘‘affected individuals.’’ Under 20 U.S.C. 

1098ee(2), the term ‘‘affected 

individual’’ means an individual who: 

• Is serving on active duty during a 

war or other military operation or 

national emergency; 

• Is performing qualifying National 

Guard duty during a war or other 

military operation or national 

emergency; 

• Resides or is employed in an area 

that is declared a disaster area by any 

Federal, State, or local official in 

connection with a national emergency; 

or 

• Suffered direct economic hardship 

as a direct result of a war or other 

military operation or national 

emergency, as determined by the 

Secretary. 

Please note that these waivers and 

modifications do not apply to an 

individual who resides or is employed 

in an area declared a disaster area by 

any Federal, State, or local official 

unless that declaration has been made 

in connection with a national 

emergency. 

Under the HEROES Act, the 

Secretary’s authority to provide the 

waivers and modifications would have 

expired on September 30, 2005. 

However, Public Law 109–78, enacted 

on September 30, 2005, extended the 

expiration date of the Secretary’s 

authority to September 30, 2007. 

Accordingly, in a document in the 

Federal Register published on October 

20, 2005 (70 FR 61037), the Secretary 

extended the expiration of the waivers 

and modifications published on 

December 12, 2003, to September 30, 

2007. 

Public Law 110–93, enacted on 

September 30, 2007, eliminated the 

September 30, 2007, expiration date of 

the HEROES Act, thereby making 

permanent the Secretary’s authority to 

issue waivers and modifications of 

statutory and regulatory provisions. 

On December 26, 2007, the Secretary 

published a document in the Federal 

Register (72 FR 72947) extending the 

waivers and modifications published on 

December 12, 2003, to September 30, 

2012. In that document, the Secretary 

also indicated an intent to review the 

waivers and modifications published on 

December 12, 2003, in light of statutory 

and regulatory changes and to consider 

whether to change some or all of the 

published waivers and modifications. 

In a document in the Federal Register 

published on September 27, 2012 (77 FR 

59311), the Secretary published updated 

waivers and modifications to reflect the 

results of the review. Under that 

document, the updated waivers and 

modifications expire on September 30, 

2017. 

The Secretary is updating the waivers 

and modifications to reflect statutory 

and regulatory changes that have 

occurred since the September 27, 2012, 

document was published. The waivers 

and modifications in this document will 

expire on September 30, 2022. With a 

few limited exceptions, the waivers and 

modifications in this document are the 

same waivers and modifications 

published in the September 27, 2012, 

Federal Register document. However, 

the 2012 waivers and modifications 

have been updated in the following 

areas: 

(1) The Secretary updated the need 

analysis modification to reflect the 

change in which tax year’s information 

is collected on the Free Application for 

Federal Student Aid (FAFSA) and used 

to calculate the applicant’s expected 

family contribution (EFC). Previously 

when completing a FAFSA, a student 

provided income information from the 

most recently completed tax year prior 

to the beginning of the financial aid 

application cycle (e.g., 2015 income 

information for the 2016–2017 FAFSA). 

Beginning with the 2017–2018 FAFSA, 

income information is collected from 

one tax year earlier—referred to as the 

‘‘prior-prior year.’’ This change was 

made under the authority of section 

480(a)(1)(B) of the Higher Education Act 

of 1965, as amended (HEA). This 

modification was also updated to make 

it consistent with the modification to 

professional judgment included in this 

document, which provides three options 

that a financial aid administrator (FAA) 

may use to make adjustments to the 

values of the items used to calculate the 

EFC to reflect a student’s special 

circumstances. 

(2) For the professional judgment 

modification, the Secretary clarified that 

in addition to using income information 


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48196 Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations 

from the first or second calendar year of 

the award year, an institution may use 

another annual income that more 

accurately reflects the family’s current 

financial circumstances. 

(3) The Secretary updated the 

modifications related to verification of 

adjusted gross income (AGI) and U.S. 

income tax paid so that affected 

individuals under this category are no 

longer required to provide a signature 

on the statement certifying that he or 

she has not filed an income tax return 

or a request for a filing extension 

because he or she was called up for 

active duty or for qualifying National 

Guard duty during a war or other 

military operation or national 

emergency; or certifying the amount of 

AGI and U.S. income tax paid for the 

specified year. 

(4) The Secretary extended the waiver 

assisting affected individuals with 

regard to the annual reevaluation 

requirements for FFEL and Direct Loan 

borrowers who are repaying loans under 

the Income-Based Repayment (IBR) 

plan, and Direct Loan borrowers who 

are repaying loans under the IncomeContingent Repayment (ICR) plan to 

include borrowers who are repaying 

Direct Loans under the Pay As You Earn 

(PAYE) or Revised Pay As You Earn 

(REPAYE) repayment plans. 

(5) For the fourth category of affected 

individuals to which waivers and 

modifications apply, as described later 

in this document, the Secretary removed 

the reference to spouses of affected 

individuals who are serving on active 

duty or performing qualifying National 

Guard duty during a war or other 

military operation or national 

emergency, since the waivers under this 

category only pertain to the dependent 

student of such affected individuals. 

(6) The Secretary updated the waiver 

related to verification signature 

requirements to waive the requirement 

for a parental signature on any 

verification documentation required for 

title IV eligibility for a dependent 

student because of the parent’s status as 

an affected individual. 

(7) The Secretary made a technical 

change to the waiver related to the 

section on required signatures on the 

FAFSA, the Student Aid Report (SAR), 

and the Institutional Student 

Information Record (ISIR), replacing the 

reference to ‘‘ISIR’’ with ‘‘or submitting 

corrections electronically’’. The 

Secretary also changed the reference to 

‘‘responsible parent’’ to ‘‘relevant 

parent’’ to mean the parent whose 

information is reported on the FAFSA. 

The Secretary is issuing these waivers 

and modifications under the authority 

of the HEROES Act, 20 U.S.C. 

1098bb(a). In accordance with the 

HEROES Act, the Secretary is providing 

the waivers and modifications of 

statutory and regulatory requirements 

applicable to the student financial 

assistance programs under title IV of the 

HEA that the Secretary believes are 

appropriate to ensure that: 

• Affected individuals who are 

recipients of student financial assistance 

under title IV are not placed in a worse 

position financially in relation to that 

financial assistance because they are 

affected individuals; 

• Affected individuals who are 

recipients of student financial assistance 

are not unduly subject to administrative 

burden or inadvertent, technical 

violations or defaults; 

• Affected individuals are not 

penalized when a determination of need 

for student financial assistance is 

calculated; 

• Affected individuals are not 

required to return or repay an 

overpayment of grant funds based on 

the HEA’s Return of Title IV Funds 

provision; and 

• Entities that participate in the 

student financial assistance programs 

under title IV of the HEA and that are 

located in areas that are declared 

disaster areas by any Federal, State, or 

local official in connection with a 

national emergency, or whose 

operations are significantly affected by 

such a disaster, receive temporary relief 

from administrative requirements. 

In 20 U.S.C. 1098bb(b)(1), the 

HEROES Act further provides that 

section 437 of the General Education 

Provisions Act (20 U.S.C. 1232) and 

section 553 of the Administrative 

Procedure Act (5 U.S.C. 553) do not 

apply to the contents of this document. 

In 20 U.S.C. 1098ee, the HEROES Act 

provides definitions critical to 

determining whether a student is an 

‘‘affected individual’’ under the act and, 

if so, to which waivers and 

modifications the affected individual is 

entitled. Because these definitions are 

located outside of the statutes and 

regulations administered by the 

Department and with which financial 

aid administrators are most familiar, 

whether a student qualifies as an 

‘‘affected individual’’ is a frequent 

source of confusion. To help ensure that 

the terms are not misinterpreted and 

that affected individuals receive the 

waivers and modifications to which 

they are entitled under the HEROES 

Act, we provide these definitions below. 

Active duty has the meaning given 

that term in 10 U.S.C. 101(d)(1), but 

does not include active duty for training 

or attendance at a service school (e.g., 

the U.S. Military Academy or U.S. Naval 

Academy). 

Military operation means a 

contingency operation as that term is 

defined in 10 U.S.C. 101(a)(13). 

National emergency means a national 

emergency declared by the President of 

the United States. 

Qualifying National Guard duty 

during a war or other military operation 

or national emergency means service as 

a member of the National Guard on fulltime National Guard duty (as defined in 

10 U.S.C. 101(d)(5)) under a call to 

active service authorized by the 

President or the Secretary of Defense for 

a period of more than 30 consecutive 

days under 32 U.S.C. 502(f), in 

connection with a war, another military 

operation, or a national emergency 

declared by the President and supported 

by Federal funds. 

Serving on active duty during a war or 

other military operation or national 

emergency includes service by an 

individual who is— 

(A) A Reserve member of an Armed 

Force ordered to active duty under 10 

U.S.C. 12301(a), 12301(g), 12302, 12304, 

or 12306, or any retired member of an 

Armed Force ordered to active duty 

under 10 U.S.C. 688, for service in 

connection with a war or other military 

operation or national emergency, 

regardless of the location at which that 

active duty service is performed; and 

(B) Any other member of an Armed 

Force on active duty in connection with 

any war, operation, or emergency or 

subsequent actions or conditions who 

has been assigned to a duty station at a 

location other than the location at 

which the member is normally assigned. 

The following waivers and 

modifications are grouped into four 

categories, according to the affected 

individuals to whom they apply. 

Category 1: The Secretary is waiving 

or modifying the following requirements 

of title IV of the HEA and the 

Department of Education’s 

(Department’s) regulations for ALL 

affected individuals. 

Need Analysis 

Section 480 of the HEA provides that, 

in the calculation of an applicant’s EFC, 

the term ‘‘total income,’’ which is used 

in the determination of ‘‘annual 

adjusted family income’’ and ‘‘available 

income,’’ is equal to the applicant’s, the 

applicant’s spouse’s, or the applicant’s 

parent’s AGI plus untaxed income and 

benefits for the second preceding tax 

year minus excludable income. The 

HEROES Act allows an institution to 

substitute AGI plus untaxed income and 

benefits received in the first calendar 

year of the award year for which such 


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determination is made for any affected 

individual, and for his or her spouse 

and dependents, if applicable, in order 

to reflect more accurately the financial 

condition of an affected individual and 

his or her family. The Secretary has 

determined that an institution has the 

option of using the applicant’s original 

EFC (the EFC based on the income and 

tax information reported on the 

FAFSA), the EFC based on the data from 

the first calendar year of the award year, 

or the EFC based on another annual 

income that more accurately reflects the 

family’s current financial 

circumstances. 

If an institution chooses to use 

anything other than the original EFC, it 

should use the administrative 

professional judgment options 

discussed in the following section. 

Professional Judgment 

Section 479A of the HEA specifically 

gives the FAA at an institution the 

authority to use professional judgment 

to make, on a case-by-case basis, 

adjustments to the cost of attendance or 

to the values of the items used in 

calculating the EFC to reflect a student’s 

special circumstances. The Secretary is 

modifying this provision by removing 

the requirement that adjustments be 

made on a case-by-case basis for affected 

individuals. The use of professional 

judgment in Federal need analysis is 

discussed in the Federal Student Aid 

Handbook available at www.ifap.ed.gov. 

The Secretary encourages FAAs to use 

professional judgment to reflect more 

accurately the financial need of affected 

individuals. To that end, the Secretary 

encourages institutions to determine an 

affected individual’s need using one of 

the options listed below: 

• Using the AGI plus untaxed income 

and benefits received in the first 

calendar year of the award year; 

• Using another annual income that 

more accurately reflects the family’s 

current financial circumstances; or 

• Making no modifications. 

The FAA must clearly document the 

reasons for any adjustment and the facts 

supporting the decision. In almost all 

cases, the FAA should have 

documentation from a third party with 

knowledge of the student’s special 

circumstances. As usual, any 

professional judgment decisions made 

by an FAA that affect a student’s 

eligibility for a subsidized student 

financial assistance program must be 

reported to the Central Processing 

System. 

Return of Title IV Funds—Grant 

Overpayments Owed by the Student 

Section 484B(b)(2) of the HEA and 34 

CFR 668.22(h)(3)(ii) require a student to 

return or repay, as appropriate, 

unearned grant funds for which the 

student is responsible under the Return 

of Title IV Funds calculation. For a 

student who withdraws from an 

institution because of his or her status 

as an affected individual, the Secretary 

is waiving these statutory and regulatory 

requirements so that a student is not 

required to return or repay any 

overpayment of grant funds based on 

the Return of Title IV Funds provisions. 

For these students, the Secretary also 

waives 34 CFR 668.22(h)(4), which: 

• Requires an institution to notify a 

student of a grant overpayment and the 

actions the student must take to resolve 

the overpayment; 

• Denies eligibility to a student who 

owes a grant overpayment and does not 

take an action to resolve the 

overpayment; and 

• Requires an institution to refer a 

grant overpayment to the Secretary 

under certain conditions. 

Therefore, an institution is not 

required to contact the student, notify 

the National Student Loan Data System, 

or refer the overpayment to the 

Secretary. However, the institution must 

document in the student’s file the 

amount of any overpayment as part of 

the documentation of the application of 

this waiver. 

The student is not required to return 

or repay an overpayment of grant funds 

based on the Return of Title IV Funds 

provision. Therefore, an institution 

must not apply any title IV credit 

balance to the grant overpayment prior 

to: Using a credit balance to pay 

authorized charges; paying any amount 

of the title IV credit balance to the 

student or parent, in the case of a parent 

PLUS loan; or using the credit balance 

to reduce the student’s title IV loan debt 

(with the student’s authorization) as 

provided in Dear Colleague Letter GEN– 

04–03 (February 2004; revised 

November 2004). 

Verification of AGI and U.S. Income 

Tax Paid 

Pursuant to 34 CFR 668.57(a)(3)(ii), 

for an individual who is required to file 

a U.S. income tax return and has been 

granted a filing extension by the Internal 

Revenue Service (IRS), an institution 

must accept, in lieu of an income tax 

return for verification of AGI or U.S. 

income tax paid: 

• A copy of IRS Form 4868, 

‘‘Application for Automatic Extension 

of Time to File U.S. Individual Income 

Tax Return,’’ that the individual filed 

with the IRS for the specified year, or a 

copy of the IRS’s approval of an 

extension beyond the automatic sixmonth extension if the individual 

requested an additional extension of the 

filing time; and 

• A copy of each IRS Form W–2 that 

the individual received for the specified 

year or, for a self-employed individual, 

a statement signed by the individual 

certifying the amount of AGI and U.S. 

income tax paid for the specified year. 

The Secretary is modifying the 

requirement of this provision so that the 

submission of a copy of IRS Form 4868 

or a copy of the IRS’s approval of an 

extension beyond the six-month 

extension is not required if an affected 

individual has not filed an income tax 

return by the filing deadline. 

For these individuals, an institution 

must accept, in lieu of an income tax 

return for verification of AGI and U.S. 

income tax paid: 

• A statement from the individual 

certifying that he or she has not filed an 

income tax return or a request for a 

filing extension because he or she was 

called up for active duty or for 

qualifying National Guard duty during a 

war or other military operation or 

national emergency; and 

• A copy of each W–2 received for the 

specified year or, for a self-employed 

individual, a statement by the 

individual certifying the amount of AGI 

and U.S. income tax paid for the 

specified year. 

An institution may request that an 

individual granted a filing extension 

submit tax information using the IRS 

Data Retrieval Tool, or by obtaining a 

tax return transcript from the IRS that 

lists tax account information for the 

specified year after the income tax 

return is filed. If an institution receives 

the tax information, it must verify the 

income information of the tax filer(s). 

Category 2: The Secretary is waiving 

or modifying requirements in the 

following provisions of title IV of the 

HEA and the Department’s regulations 

for affected individuals who are serving 

on active duty or performing qualifying 

National Guard duty during a war or 

other military operation or national 

emergency, or who reside or are 

employed in a disaster area. 

Return of Title IV Funds—PostWithdrawal Disbursements of Loan 

Funds 

Under 34 CFR 668.22(a)(6)(iii)(A)(5) 

and (D), a student (or parent for a parent 

PLUS loan) must be provided a postwithdrawal disbursement of a title IV 

loan if the student (or parent) responds 

to an institution’s notification of the 


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48198 Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations 

post-withdrawal disbursement within 

14 days of the date that the institution 

sent the notice, or a later deadline set by 

the institution. If a student or parent 

submits a late response, an institution 

may, but is not required to, make the 

post-withdrawal disbursement. 

The Secretary is modifying this 

requirement so that, for a student who 

withdraws because of his or her status 

as an affected individual in this category 

and who is eligible for a postwithdrawal disbursement, the 14-day 

time period in which the student (or 

parent) must normally respond to the 

offer of the post-withdrawal 

disbursement is extended to 45 days, or 

to a later deadline set by the institution. 

If the student or parent submits a 

response after the designated period, the 

institution may, but is not required to, 

make the post-withdrawal 

disbursement. As required under the 

current regulations, if the student or 

parent submits the timely response 

instructing the institution to make all or 

a portion of the post-withdrawal 

disbursement, or the institution chooses 

to make a post-withdrawal 

disbursement based on receipt of a late 

response, the institution must disburse 

the funds within 180 days of the date of 

the institution’s determination that the 

student withdrew. 

Leaves of Absence 

Under 34 CFR 668.22(d)(3)(iii)(B), a 

student is required to provide a written, 

signed, and dated request, which 

includes the reason for that request, for 

an approved leave of absence prior to 

the leave of absence. However, if 

unforeseen circumstances prevent a 

student from providing a prior written 

request, the institution may grant the 

student’s request for a leave of absence 

if the institution documents its decision 

and collects the written request at a later 

date. It may be appropriate in certain 

limited cases for an institution to 

provide an approved leave of absence to 

a student who must interrupt his or her 

enrollment because he or she is an 

affected individual in this category. 

Therefore, the Secretary is waiving the 

requirement that the student provide a 

written request for affected individuals 

who have difficulty providing a written 

request as a result of being an affected 

individual in this category. The 

institution’s documentation of its 

decision to grant the leave of absence 

must include, in addition to the reason 

for the leave of absence, the reason for 

waiving the requirement that the leave 

of absence be requested in writing. 

Treatment of Title IV Credit Balances 

When a Student Withdraws 

Under 34 CFR 668.164(h)(2), an 

institution must pay any title IV credit 

balance to the student, or parent in the 

case of a parent PLUS loan, as soon as 

possible, but no later than: 14 days after 

the balance occurred if the balance 

occurred after the first day of class of a 

payment period; or 14 days after the 

first day of class of a payment period if 

the balance occurred on or before the 

first day of class of that payment period. 

If the student (or parent) has provided 

authorization, an institution may use a 

title IV credit balance to reduce the 

borrower’s total title IV loan debt, not 

just the title IV loan debt for the period 

for which the Return of Title IV Funds 

calculation is performed. 

For students who withdraw because 

they are affected individuals in this 

category, the Secretary finds that the 

institution has met the 14-day 

requirement under 34 CFR 668.164(h)(2) 

if, within that timeframe, the institution 

attempts to contact the student (or 

parent) to suggest that the institution be 

authorized to return the credit balance 

to the loan program(s). 

Based upon the instructions of the 

student (or parent), the institution must 

promptly return the funds to the title IV 

loan programs or pay the credit balance 

to the student (or parent). 

In addition, if an institution chooses 

to attempt to contact the student (or 

parent) for authorization to apply the 

credit balance to reduce the student’s 

title IV loan debt, it must allow the 

student (or parent) 45 days to respond. 

If there is no response within 45 days, 

the institution must promptly pay the 

credit balance to the student (or parent) 

or return the funds to the title IV 

programs if the student (or parent) 

cannot be located. 

Consistent with the guidance 

provided in Dear Colleague Letter GEN– 

04–03 (February 2004; revised 

November 2004), the institution may 

also choose to pay the credit balance to 

the student (or parent) without first 

requesting permission to apply the 

credit balance to reduce the student’s 

title IV loan debt. 

Cash Management—Student or Parent 

Request for Loan or TEACH Grant 

Cancellation 

Under 34 CFR 668.165(a)(4)(ii), an 

institution must return loan or TEACH 

Grant proceeds, cancel the loan or 

TEACH Grant, or do both, if the 

institution receives a loan or TEACH 

Grant cancellation request from a 

student or parent: 

• By the later of the first day of a 

payment period or 14 days after the date 

the institution notifies the student or 

parent of his or her right to cancel all 

or a portion of a loan or TEACH Grant, 

if the institution obtains affirmative 

confirmation from the student under 34 

CFR 668.165(a)(6)(i); or 

• Within 30 days of the date the 

institution notifies the student or parent 

of his or her right to cancel all or a 

portion of a loan, if the institution does 

not obtain affirmative confirmation from 

the student under 34 CFR 

668.165(a)(6)(i). 

Under 34 CFR 668.165(a)(4)(iii), if an 

institution receives a loan cancellation 

request from a borrower after the period 

specified in 34 CFR 668.165(a)(4)(ii), the 

institution may, but is not required to, 

comply with the request. For a student 

or parent who is an affected individual 

in this category, the Secretary is 

modifying this requirement so that an 

institution must allow at least 60 days 

for the student or parent to request the 

cancellation of all or a portion of a loan 

or TEACH Grant for which proceeds 

have been credited to the account at the 

institution. If an institution receives a 

loan or TEACH Grant cancellation 

request after the 60-day period, the 

institution may, but is not required to, 

comply with the request. 

Cash Management—Student and Parent 

Authorizations 

Under 34 CFR 668.165(b)(1), an 

institution must obtain a written 

authorization from a student or parent, 

as applicable, to: 

• Use title IV funds to pay for 

educationally related charges incurred 

by the student at the institution other 

than charges for tuition and fees and, as 

applicable, room and board; and 

• Hold on behalf of the student or 

parent any title IV funds that would 

otherwise be paid directly to the student 

or parent. 

The Secretary is modifying these 

requirements to permit an institution to 

accept an authorization provided by a 

student (or parent for a parent PLUS 

loan) orally, rather than in writing, if the 

student or parent is prevented from 

providing a written authorization 

because of his or her status as an 

affected individual in this category. The 

institution must document the oral 

consent or authorization. 

Satisfactory Academic Progress 

Institutions may, in cases where a 

student failed to meet the institution’s 

satisfactory academic progress standards 

as a direct result of being an affected 

individual in this category, apply the 

exception provision of ‘‘other special 

circumstances’’ contained in 34 CFR 

668.34(a)(9)(ii). 


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Borrowers in a Grace Period 

Sections 428(b)(7)(D) and 464(c)(7) of 

the HEA and 34 CFR 674.31(b)(2)(i)(C), 

682.209(a)(5), and 685.207(b)(2)(ii) and 

(c)(2)(ii) exclude from a Federal Perkins 

Loan, FFEL, or Direct Loan borrower’s 

(title IV borrower’s) initial grace period 

any period during which a borrower 

who is a member of an Armed Forces 

reserve component is called or ordered 

to active duty for a period of more than 

30 days. The statutory and regulatory 

provisions further require that any 

single excluded period may not exceed 

three years and must include the time 

necessary for the borrower to resume 

enrollment at the next available regular 

enrollment period. Lastly, any borrower 

who is in a grace period when called or 

ordered to active duty is entitled to 

another six- or nine-month grace period, 

as applicable, upon completion of the 

excluded period of service. 

The Secretary is modifying these 

statutory and regulatory requirements to 

exclude from a title IV borrower’s initial 

grace period, any period, not to exceed 

three years, during which a borrower is 

an affected individual in this category. 

Any excluded period must include the 

time necessary for an affected 

individual in this category to resume 

enrollment at the next available 

enrollment period. 

Borrowers in an ‘‘In-School’’ Period 

A title IV borrower is considered to be 

in an ‘‘in-school’’ status and is not 

required to make payments on a title IV 

loan that has not entered repayment as 

long as the borrower is enrolled at an 

eligible institution on at least a half-time 

basis. Under sections 428(b)(7) and 

464(c)(1)(A) of the HEA and 34 CFR 

674.31(b)(2), 682.209(a), and 685.207(b), 

(c), and (e)(2) and (3), when a title IV 

borrower ceases to be enrolled at an 

eligible institution on at least a half-time 

basis, the borrower is obligated to begin 

repayment of the loan after a six- or 

nine-month grace period, depending on 

the title IV loan program and the terms 

of the borrower’s promissory note. The 

Secretary is modifying the statutory and 

regulatory requirements that obligate an 

‘‘in-school’’ borrower who has dropped 

below half-time status to begin 

repayment if the borrower is an affected 

individual in this category, by requiring 

the holder of the loan to maintain the 

loan in an ‘‘in-school’’ status for a 

period not to exceed three years, 

including the time necessary for the 

borrower to resume enrollment in the 

next regular enrollment period, if the 

borrower is planning to go back to 

school. The Secretary will pay interest 

that accrues on a subsidized Stafford 

Loan as a result of the extension of a 

borrower’s in-school status under this 

modification. 

Borrowers in an In-School, Graduate 

Fellowship, or Rehabilitation Training 

Program Deferment 

Under sections 427(a)(2)(C)(i), 

428(b)(1)(M)(i), 428B(a)(2) and (d)(1), 

428C(b)(4)(C), 455(f)(2)(A), and 

464(c)(2)(A)(i) of the HEA and 34 CFR 

674.34(b)(1), 682.210(b)(1)(i), (ii), and 

(iii), 682.210(s)(2), (3), and (4), 

685.204(b), 685.204(d), and 685.204(e), a 

title IV borrower is eligible for a 

deferment on the loan during periods 

after the commencement or resumption 

of the repayment period on the loan 

when the borrower is enrolled and in 

attendance as a regular student on at 

least a half-time basis (or full-time, if 

required by the terms of the borrower’s 

promissory note) at an eligible 

institution; enrolled and in attendance 

as a regular student in a course of study 

that is part of a graduate fellowship 

program; engaged in an eligible 

rehabilitation training program; or, for 

Federal Perkins Loan borrowers, 

engaged in graduate or post-graduate 

fellowship-supported study outside the 

United States. The borrower’s deferment 

period ends when the borrower no 

longer meets one of the above 

conditions. 

The Secretary is waiving the statutory 

and regulatory eligibility requirements 

for this deferment for title IV borrowers 

who were required to interrupt a 

graduate fellowship or rehabilitation 

training program deferment, or who 

were in an in-school deferment but who 

left school, because of their status as an 

affected individual in this category. The 

holder of the loan is required to 

maintain the loan in the graduate 

fellowship, rehabilitation training 

program, or in-school deferment status 

for a period not to exceed three years 

during which the borrower is an 

affected individual in this category. This 

period includes the time necessary for 

the borrower to resume his or her 

graduate fellowship program, resume a 

rehabilitation training program, or 

resume enrollment in the next regular 

enrollment period if the borrower 

returns to school. The Secretary will pay 

interest that accrues on a FFEL 

subsidized Stafford Loan or not charge 

interest on a Direct subsidized Stafford 

Loan as a result of extending a 

borrower’s eligibility for deferment 

under this waiver. 

Forbearance 

Under section 464(e) of the HEA and 

34 CFR 674.33(d)(2), there is a threeyear cumulative limit on the length of 

forbearances that a Federal Perkins Loan 

borrower can receive. To assist Federal 

Perkins Loan borrowers who are 

affected individuals in this category, the 

Secretary is waiving these statutory and 

regulatory requirements so that any 

forbearance based on a borrower’s status 

as an affected individual in this category 

is excluded from the three-year 

cumulative limit. 

Under section 464(e) of the HEA and 

34 CFR 674.33(d)(2) and (3), a school 

must receive a request and supporting 

documentation from a Federal Perkins 

Loan borrower before granting the 

borrower a forbearance, the terms of 

which must be in the form of a written 

agreement. The Secretary is waiving 

these statutory and regulatory 

requirements to require an institution to 

grant forbearance based on the 

borrower’s status as an affected 

individual in this category for a oneyear period, including a three-month 

‘‘transition period’’ immediately 

following, without supporting 

documentation or a written agreement, 

based on the written or oral request of 

the borrower, a member of the 

borrower’s family, or another reliable 

source. The purpose of the three-month 

transition period is to assist borrowers 

so that they will not be required to 

reenter repayment immediately after 

they are no longer affected individuals 

in this category. In order to grant the 

borrower forbearance beyond the initial 

twelve- to fifteen-month period, 

supporting documentation from the 

borrower, a member of the borrower’s 

family, or another reliable source is 

required. 

Under 34 CFR 682.211(i)(1), a FFEL 

borrower who requests forbearance 

because of a military mobilization must 

provide the loan holder with 

documentation showing that he or she 

is subject to a military mobilization. The 

Secretary is waiving this requirement to 

allow a borrower who is not otherwise 

eligible for the military service 

deferment under 34 CFR 682.210(t), 

685.204(h), and 674.34(h) to receive 

forbearance at the request of the 

borrower, a member of the borrower’s 

family, or another reliable source for a 

one-year period, including a threemonth transition period that 

immediately follows, without providing 

the loan holder with documentation. To 

grant the borrower forbearance beyond 

this period, documentation supporting 

the borrower’s military mobilization 

must be submitted to the loan holder. 

The Secretary will apply the 

forbearance waivers and modifications 

in this section to loans held by the 

Department. 


nlaroche on DSK9F9SC42PROD with RULES
48200 Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations 

Collection of Defaulted Loans 

In accordance with 34 CFR part 674, 

subpart C—Due Diligence, and 

682.410(b)(6), schools and guaranty 

agencies must attempt to recover 

amounts owed from defaulted Federal 

Perkins Loan and FFEL borrowers, 

respectively. The Secretary is waiving 

the regulatory provisions that require 

schools and guaranty agencies to 

attempt collection on defaulted loans for 

the time period during which the 

borrower is an affected individual in 

this category and for a three-month 

transition period. The school or 

guaranty agency may stop collection 

activities upon notification by the 

borrower, a member of the borrower’s 

family, or another reliable source that 

the borrower is an affected individual in 

this category. Collection activities must 

resume after the borrower has notified 

the school or guaranty agency that he or 

she is no longer an affected individual 

and the three-month transition period 

has expired. The loan holder must 

document in the loan file why it has 

suspended collection activities on the 

loan, and the loan holder is not required 

to obtain evidence of the borrower’s 

status while collection activities have 

been suspended. The Secretary will 

apply the waivers described in this 

paragraph to loans held by the 

Department. 

Loan Cancellation 

Depending on the loan program, 

borrowers may qualify for loan 

cancellation if they are employed 

fulltime in specified occupations, such 

as teaching or in law enforcement, 

pursuant to sections 428J, 460(b)(1), and 

465(a)(2)(A)–(M) and (3) of the HEA, 

and 34 CFR 674.53, 674.55, 674.55(b), 

674.56, 674.57, 674.58, 674.60, 682.216, 

and 685.217. Generally, to qualify for 

loan cancellation, borrowers must 

perform uninterrupted, otherwise 

qualifying service for a specified length 

of time (for example, one year) or for 

consecutive periods of time, such as five 

consecutive years. 

For borrowers who are affected 

individuals in this category, the 

Secretary is waiving the requirements 

that apply to the various loan 

cancellations that such periods of 

service be uninterrupted or consecutive, 

if the reason for the interruption is 

related to the borrower’s status as an 

affected individual in this category. 

Therefore, the service period required 

for the borrower to receive or retain a 

loan cancellation for which he or she is 

otherwise eligible will not be 

considered interrupted by any period 

during which the borrower is an 

affected individual in this category, 

including the three-month transition 

period. The Secretary will apply the 

waivers described in this paragraph to 

loans held by the Department. 

Rehabilitation of Defaulted Loans 

A borrower of a Direct Loan or FFEL 

Loan must make nine voluntary ontime, monthly payments over ten 

consecutive months to rehabilitate a 

defaulted loan in accordance with 

section 428F(a) of the HEA and 34 CFR 

682.405 and 685.211(f). Federal Perkins 

Loan borrowers must make nine 

consecutive, on-time monthly payments 

to rehabilitate a defaulted Federal 

Perkins Loan in accordance with section 

464(h)(1)(A) of the HEA and 34 CFR 

674.39. To assist title IV borrowers who 

are affected individuals in this category, 

the Secretary is waiving the statutory 

and regulatory requirements that 

payments made to rehabilitate a loan 

must be consecutive or made over no 

more than ten consecutive months. Loan 

holders should not treat any payment 

missed during the time that a borrower 

is an affected individual in this 

category, or during the three-month 

transition period, as an interruption in 

the number of monthly, on-time 

payments required to be made 

consecutively, or the number of 

consecutive months in which payment 

is required to be made, for loan 

rehabilitation. If there is an arrangement 

or agreement in place between the 

borrower and loan holder and the 

borrower makes a payment during this 

period, the loan holder must treat the 

payment as an eligible payment in the 

required series of payments. When the 

borrower is no longer an affected 

individual in this category, and the 

three-month transition period has 

expired, the required sequence of 

qualifying payments may resume at the 

point they were discontinued as a result 

of the borrower’s status. The Secretary 

will apply the waivers described in this 

paragraph to loans held by the 

Department. 

Reinstatement of Title IV Eligibility 

Under sections 428F(b) and 464(h)(2) 

of the HEA and under the definition of 

‘‘satisfactory repayment arrangement’’ 

in 34 CFR 668.35(a)(2), 674.2(b), 

682.200(b), and 685.102(b), a defaulted 

title IV borrower may make six 

consecutive, on-time, voluntary, full, 

monthly payments to reestablish 

eligibility for title IV student financial 

assistance. To assist title IV borrowers 

who are affected individuals in this 

category, the Secretary is waiving 

statutory and regulatory provisions that 

require the borrower to make 

consecutive payments to reestablish 

eligibility for title IV student financial 

assistance. Loan holders should not 

treat any payment missed during the 

time that a borrower is an affected 

individual in this category as an 

interruption in the six consecutive, ontime, voluntary, full, monthly payments 

required for reestablishing title IV 

eligibility. If there is an arrangement or 

agreement in place between the 

borrower and loan holder and the 

borrower makes a payment during this 

period, the loan holder must treat the 

payment as an eligible payment in the 

required series of payments. When the 

borrower is no longer an affected 

individual or in the three-month 

transition period for purposes of this 

document, the required sequence of 

qualifying payments may resume at the 

point they were discontinued as a result 

of the borrower’s status. The Secretary 

will apply the waivers described in this 

paragraph to loans held by the 

Department. 

Consolidation of Defaulted Loans 

Under the definition of ‘‘satisfactory 

repayment arrangement’’ in 34 CFR 

685.102(b), a defaulted FFEL or Direct 

Loan borrower may establish eligibility 

to consolidate a defaulted loan in the 

Direct Consolidation Loan Program by 

making three consecutive, voluntary, 

on-time, monthly, full payments on the 

loan. The Secretary is waiving the 

regulatory requirement that such 

payments be consecutive. FFEL loan 

holders should not treat any payment 

missed during the time that a borrower 

is an affected individual in this category 

as an interruption in the three 

consecutive, voluntary, monthly, full, 

on-time payments required for 

establishing eligibility to consolidate a 

defaulted loan in the Direct 

Consolidation Loan Program. If there is 

an arrangement or agreement in place 

between the borrower and loan holder 

and the borrower makes a payment 

during this period, the loan holder must 

treat the payment as an eligible payment 

in the required series of payments. 

When the borrower is no longer an 

affected individual in this category or in 

the three-month transition period, the 

required sequence of qualifying 

payments may resume at the point they 

were discontinued as a result of the 

borrower’s status as an affected 

individual. The Secretary will apply the 

waivers described in this paragraph to 

loans held by the Department. 


nlaroche on DSK9F9SC42PROD with RULES
Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations 48201 

Annual Income Documentation 

Requirements for Direct Loan and FFEL 

Borrowers Under the IBR, PAYE, 

REPAYE, and ICR Plans 

Section 493C(c) of the HEA requires 

the Secretary to establish procedures for 

annually determining a borrower’s 

eligibility for the IBR plan, including 

verification of a borrower’s annual 

income and the annual amount due on 

the total amount of the borrower’s loans. 

Section 455(e)(1) of the HEA provides 

that the Secretary may obtain such 

information as is reasonably necessary 

regarding the income of a borrower for 

the purpose of determining the annual 

repayment obligation of the borrower 

under an income-contingent repayment 

plan. Under 34 CFR 682.215(e), 

685.209(a)(5), (b)(3), and (c)(4), and 

685.221(e), borrowers repaying under 

the IBR, PAYE, REPAYE, or ICR plans 

must annually provide their loan holder 

with documentation of their income and 

family size so that the loan holder may, 

if necessary, adjust the borrower’s 

monthly payment amount based on 

changes in the borrower’s income or 

family size. Borrowers are required to 

provide information about their annual 

income and family size to the loan 

holder each year by a deadline specified 

by the holder. If a borrower who is 

repaying his or her loans under the IBR, 

PAYE, or ICR plans fails to provide the 

required information by the specified 

deadline, the borrower’s monthly 

payment amount is adjusted and is no 

longer based on the borrower’s income. 

This adjusted monthly payment amount 

is generally higher than the payment 

amount that was based on the 

borrower’s income. 

The Secretary is waiving these 

statutory and regulatory provisions to 

require loan holders to maintain an 

affected borrower’s payment at the most 

recently calculated IBR, PAYE, 

REPAYE, or ICR monthly payment 

amount for up to a three-year period, 

including a three-month transition 

period immediately following the threeyear period, if the borrower’s status as 

an affected individual in this category 

has prevented the borrower from 

providing documentation of updated 

income and family size by the specified 

deadline. 

Category 3: The Secretary is waiving 

or modifying the following provisions of 

title IV of the HEA and the Department’s 

regulations for affected individuals who 

are serving on active duty or performing 

qualifying National Guard duty during a 

war or other military operation or 

national emergency. 

Institutional Charges and Refunds 

The HEROES Act encourages 

institutions to provide a full refund of 

tuition, fees, and other institutional 

charges for the portion of a period of 

instruction that a student was unable to 

complete, or for which the student did 

not receive academic credit, because he 

or she was called up for active duty or 

for qualifying National Guard duty 

during a war or other military operation 

or national emergency. Alternatively, 

the Secretary encourages institutions to 

provide a credit in a comparable amount 

against future charges. 

The HEROES Act also recommends 

that institutions consider providing easy 

and flexible reenrollment options to 

students who are affected individuals in 

this category. At a minimum, an 

institution must comply with the 

requirements of 34 CFR 668.18, which 

addresses the readmission requirements 

for service members serving for a period 

of more than 30 consecutive days under 

certain conditions. Some institutions 

must also abide by the protections 

provided by the Principles of Excellence 

(Executive Order 13607, issued April 

27, 2012) to service members who are 

absent for shorter periods of service. 

Institutions agree to comply with the 

Principles of Excellence through 

arrangements with the Department of 

Defense and the Department of Veterans 

Affairs. Executive Order 13607 is 

available at www.whitehouse.gov/thepress-office/2012/04/27/executiveorder-establishing-principlesexcellence-educational-instituti. 

Of course, an institution may provide 

such treatment to affected individuals 

other than those who are called up to 

active duty or for qualifying National 

Guard duty during a war or other 

military operation or national 

emergency. 

Before an institution makes a refund 

of institutional charges, it must perform 

the required Return of Title IV Funds 

calculations based upon the originally 

assessed institutional charges. After 

determining the amount that the 

institution must return to the title IV 

Federal student aid programs, any 

reduction of institutional charges may 

take into account the funds that the 

institution is required to return. In other 

words, we do not expect that an 

institution would both return funds to 

the Federal programs and also provide 

a refund of those same funds to the 

student. 

Category 4: The Secretary is waiving 

or modifying the following provisions of 

the HEA and the Department’s 

regulations for dependents of affected 

individuals who are serving on active 

duty or performing qualifying National 

Guard duty during a war or other 

military operation or national 

emergency. 

Verification Signature Requirements 

The Department’s regulations in 34 

CFR 668.57(b), (c), and (d) require 

signatures to verify the number of 

family members in the household, the 

number of family members enrolled in 

postsecondary institutions, or other 

information specified in the annual 

Federal Register document that 

announces the FAFSA information that 

an institution and an applicant may be 

required to verify, as well as the 

acceptable documentation for verifying 

that FAFSA information. The Secretary 

is waiving the requirement for a parent’s 

signature on any verification 

documentation required for title IV 

eligibility for a dependent student when 

no relevant parent can provide the 

required signature because of the 

parent’s status as an affected individual 

in this category. 

Required Signatures on the FAFSA, 

SAR, or in Connection With Submitting 

Corrections Electronically 

Generally, when a dependent 

applicant for title IV aid submits the 

FAFSA or submits corrections to a 

previously submitted FAFSA, at least 

one parent’s signature is required on the 

FAFSA, SAR, or in connection with 

submitting corrections electronically. 

The Secretary is waiving this 

requirement so that an applicant need 

not provide a parent’s signature when 

there is no relevant parent who can 

provide the required signature because 

of the parent’s status as an affected 

individual in this category. In these 

situations, a student’s high school 

counselor or the FAA may sign on 

behalf of the parent as long as the 

applicant provides adequate 

documentation concerning the parent’s 

inability to provide a signature due to 

the parent’s status as an affected 

individual in this category. 

Electronic Access to This Document: 

The official version of this document is 

the document published in the Federal 

Register. Free internet access to the 

official edition of the Federal Register 

and the Code of Federal Regulations is 

available via the Federal Digital System 

at: www.gpo.gov/fdsys. At this site you 

can view this document, as well as all 

other documents of this Department 

published in the Federal Register, in 

text or Portable Document Format 

(PDF). To use PDF you must have 

Adobe Acrobat Reader, which is 

available free at the site. You may also 

access documents of the Department 


nlaroche on DSK9F9SC42PROD with RULES
48202 Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Rules and Regulations 

published in the Federal Register by 

using the article search feature at: 

www.federalregister.gov. Specifically, 

through the advanced search feature at 

this site, you can limit your search to 

documents published by the 

Department. 

(Catalog of Federal Domestic Assistance 

Numbers: 84.007 Federal Supplemental 

Educational Opportunity Grant Program; 

84.032 Federal Family Education Loan 

Program; 84.032 Federal PLUS Program; 

84.033 Federal Work Study Program; 84.038 

Federal Perkins Loan Program; 84.063 

Federal Pell Grant Program; and 84.268 

William D. Ford Federal Direct Loan 

Program.) 

Program Authority: 20 U.S.C. 1071, 1082, 

1087a, 1087aa, Part F–1. 

Dated: October 12, 2017. 

Kathleen A. Smith, 

Acting Assistant Secretary for Postsecondary 

Education. 

[FR Doc. 2017–22489 Filed 10–16–17; 8:45 am] 

BILLING CODE 4000–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 60 

[EPA–R01–OAR–2017–0514; FRL–9969–57– 

Region 1] 

Notification of Partial Delegation of 

Authority; Vermont; New Source 

Performance Standards for New 

Residential Wood Heaters, New 

Residential Hydronic Heaters, and 

Forced-Air Furnaces 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Notification of partial delegation 

of authority. 

SUMMARY: On September 19, 2017, the 

Environmental Protection Agency (EPA) 

sent the State of Vermont a letter 

approving Vermont’s request for partial 

delegation of the New Source 

Performance Standards for New 

Residential Wood Heaters, New 

Residential Hydronic Heaters, and 

Forced-Air Furnaces (NSPS). To inform 

regulated facilities and the public of 

EPA’s approval of Vermont’s request for 

partial delegation of authority to 

implement and enforce the NSPS, the 

EPA is making available a copy of EPA’s 

letter to Vermont through this 

document. 

DATES: On September 19, 2017, EPA 

sent the State of Vermont a letter 

approving Vermont’s request for partial 

delegation of the NSPS. 

ADDRESSES: The EPA has established a 

docket for this action under Docket 

Identification No. EPA–R01–OAR– 

2017–0514. Copies of documents 

pertaining to this action are available for 

public inspection at our Region 1 office 

during normal business hours. All 

documents in the electronic docket are 

listed in the www.regulations.gov index. 

Although listed in the index, some 

information is not publicly available, 

i.e., CBI or other information whose 

disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the Internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available either electronically in 

www.regulations.gov or in hard copy at 

the Office of Ecosystem Protection, U.S. 

Environmental Protection Agency, EPA 

New England Regional Office, 5 Post 

Office Square, Boston, MA. EPA 

requests that if at all possible, you 

contact the contact listed in the FOR

FURTHER INFORMATION CONTACT section to 

schedule your inspection. The Regional 

Office’s official hours of business are 

Monday through Friday, 8:30 a.m. to 

4:30 a.m., excluding legal holidays. 

FOR FURTHER INFORMATION CONTACT: Eric 

Wortman, Air Permits, Toxics and 

Indoor Programs Unit, Office of 

Ecosystem Protection, U.S. 

Environmental Protection Agency, EPA 

New England Regional Office, 5 Post 

Office Square (OEP05–2), Boston, MA 

02109–3912, telephone number (617) 

918–1624, fax number (617) 918–0624, 

email wortman.eric@epa.gov. 

SUPPLEMENTARY INFORMATION: In a letter 

dated May 19, 2017, the Vermont 

Agency of Natural Resources (VT ANR) 

notified the EPA that VT ANR had 

adopted an amended § 5–204 of the 

Vermont Air Pollution Control 

Regulation for Wood Stoves and Central 

Heaters and requested partial delegation 

to implement and enforce certain 

provisions of the NSPS. On September 

19, 2017, the EPA sent VT ANR a letter 

approving the request for partial 

delegation to implement and enforce the 

NSPS as specified by VT ANR in its 

notification to the EPA. A copy of the 

EPA’s September 19, 2017 letter to VT 

ANR follows: 

Heidi Hales, Division Director 

Department of Environmental Conservation 

One National Life Drive 

Montpelier, VT 05620–3802 

Dear Ms. Hales: 

On March 16, 2015, the EPA promulgated 

Standards of Performance for New 

Residential Wood Heaters, New Residential 

Hydronic Heaters, and Forced-Air Furnaces 

(NSPS) at 40 CFR part 60, subparts AAA and 

QQQQ. In your letter dated May 19, 2017, the 

Vermont Agency of Natural Resources (VT 

ANR) requested partial delegation to 

implement and enforce certain provisions of 

the NSPS. 

Delegation Request 

VT ANR requested partial delegation to 

implement and enforce the following 

provisions of the NSPS at 40 CFR 60.539a 

and 60.5482: 

1. Enforcement of prohibitions on the 

installation and operation of affected wood 

heaters and central heaters in a manner 

inconsistent with the installation and 

owner’s manual; 

2. Enforcement of prohibitions on 

operation of catalytic wood heaters or central 

heaters where the catalyst has been 

deactivated or removed; 

3. Enforcement of prohibitions on 

advertisement and/or sale of uncertified 

model lines; 

4. Enforcement of prohibitions on 

advertisement and/or sale of affected wood 

heaters and central heaters that do not have 

the required permanent label; 

5. Enforcement of proper labeling of 

affected wood heaters and central heaters; 

and 

6. Enforcement of compliance with other 

labeling requirements for wood heaters and 

central heaters. 

Delegation of Authority 

On December 15, 2016, VT ANR adopted 

and amended the Vermont Air Pollution 

Control Regulations at § 5–204 for Wood 

Stoves and Central Heaters. In the May 19, 

2017 letter, VT ANR provided copies of its 

revised regulations and its authority to accept 

delegation. 

The EPA has reviewed the pertinent 

regulations of the State of Vermont, and has 

determined they provide an adequate and 

effective procedure for implementation of the 

requested NSPS provisions. Accordingly, the 

EPA hereby approves your request for partial 

delegation of authority to implement and 

enforce the identified provisions of the NSPS 

at 40 CFR 60.539a and 60.5482. 

Please note that this partial delegation of 

authority is subject to the terms and 

conditions in the March 6, 1996 

Memorandum of Understanding between the 

VT ANR and the EPA for delegation of 

Section 111 standards. In addition, the EPA 

is not delegating any authorities under 40 

CFR 60.539a and 60.5482 that specifically 

indicate they cannot be delegated. 

Since this delegation is effectively 

immediately, there is no need for VT ANR to 

notify the EPA of its acceptance. Unless we 

receive written notice of objections from VT 

ANR within ten (10) days from the date of 

this letter, VT ANR will be deemed to have 

accepted all of the terms as stated herein. We 

will publish a notice of delegation of 

authority in the Federal Register informing 

the public of this action. 

The EPA appreciates Vermont’s efforts to 

accept partial delegation and implement and 

enforce the Wood Heater and Central Heater 

NSPS delegated provisions. If you have any 

questions regarding this matter, please don’t 

hesitate to contact Eric Wortman at (617) 

918–1624. 

Sincerely, 

Deborah A. Szaro 


nlaroche on DSK9F9SC42PROD with RULES