Surety Bond Guarantee Program; Timber Sales, 63419-63420 [2010-25999]

Download as PDF Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Proposed Rules the proposed design is equal to or less than the applicable maximum allowable fossil fuel-generated energy consumption value in § 435.4(e), the proposed design complies with the fossil fuel-generated energy Reduction Fiscal year consumption reduction requirement in multiplier § 435.4. If the fossil fuel-generated 2012–2014 ................................ 0.45 energy consumption of the proposed 2015–2019 ................................ 0.35 design is greater than the applicable 2020–2024 ................................ 0.20 maximum allowable fossil fuel2025–2029 ................................ 0.10 2030 and beyond ...................... 0.00 generated energy consumption value in § 435.4(e), the building does not comply with the fossil fuel-generated energy (5) All building energy usage, including estimated receptacle and plug consumption reduction requirement in § 435.4, and the agency must either loads, must be included in the modify the design until the design calculation in Table 2 of this section. complies with the requirement, or (f)(1) Upon petition by an agency request and receive approval from the subject to this section, the Secretary Secretary for a downward adjustment of may adjust the applicable numeric the requirement. requirement in paragraph (e) of this section with respect to a specific [FR Doc. 2010–25852 Filed 10–14–10; 8:45 am] building, if: BILLING CODE 6450–01–P (i) The head of the agency designing the building certifies in writing that meeting such requirement would be SMALL BUSINESS ADMINISTRATION technically impracticable in light of the agency’s specified functional needs for 13 CFR Part 115 that building; RIN 3245–AG14 (ii) The head of the agency designing the building demonstrates that the Surety Bond Guarantee Program; requested adjustment is the largest Timber Sales feasible reduction in fossil fuelgenerated consumption that can AGENCY: Small Business Administration. reasonably be achieved; and ACTION: Proposed rule. (iii) The Secretary concurs with the agency’s conclusion. SUMMARY: The Small Business (2) This adjustment shall not apply to Administration (SBA) proposes to the General Services Administration. amend its Surety Bond Guarantee 12. Section 435.5 is revised to read as Program rules to guarantee performance follows: bonds for timber sale contracts awarded by the Federal Government or other § 435.5 Performance level determination. public or private landowners. (a) For new Federal low-rise DATES: Comments must be received on residential buildings whose design for or before November 15, 2010. construction started on or after January 3, 2007, each Federal agency shall ADDRESSES: You may submit comments, determine energy consumption levels identified by RIN 3245–AG14, by any of for both the baseline building and the following methods: proposed building by using the Federal eRulemaking Portal: https:// Simulated Performance Alternative www.regulations.gov. Follow the found in section 404 of the ICC instructions for submitting comments. International Energy Conservation Code, Mail: Office of Surety Guarantees, 2004 Supplement Edition, January 2005 Suite 8600, 409 Third Street, SW., (incorporated by reference; see § 435.3). Washington, DC 20416. (b) Subject to § 435.4(d), each Federal Hand Delivery/Courier: Office of agency shall calculate the fossil fuelSurety Guarantees, 409 Third Street, generated energy consumption of a SW., Washington, DC 20416. proposed design by the following SBA will post all comments on https:// formula: www.regulations.gov. If you wish to Proposed Design Fossil Fuel-Generated submit confidential business Energy Consumption = (Proposed information (CBI) as defined in the User Design Electricity Consumption × Notice at https://www.regulations.gov, Electricity Source Energy Factor × please submit information to Ms. Electricity Fossil Fuel-Generation Barbara Brannan, Special Assistant, Ratio) + Direct Fossil Fuel Office of Surety Guarantees, 409 Third, Consumption of Proposed Design Street, SW., Washington, DC 20416 or (c) Subject to § 435.4(d), if the fossil send an e-mail to fuel-generated energy consumption of Barbara.brannan@sba.gov. Highlight the mstockstill on DSKH9S0YB1PROD with PROPOSALS TABLE 2—FOSSIL FUEL REDUCTION MULTIPLIER BY FISCAL YEAR FOR WHICH DESIGN FOR CONSTRUCTION BEGAN VerDate Mar<15>2010 16:00 Oct 14, 2010 Jkt 223001 PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 63419 information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination whether it will publish the information. FOR FURTHER INFORMATION CONTACT: Ms. Barbara Brannan, Office of Surety Guarantees, 202–205–6545, e-mail: Barbara.brannan@sba.gov. SUPPLEMENTARY INFORMATION: I. Background Information The Forest Service of the U.S. Department of Agriculture (USDA) manages the National Forest System, and may permit the harvesting of timber on National Forest System lands in exchange for the payment of an agreed upon sum of money. More information on that program is available at the Web site of the USDA Forest Service at https://www.fs.fed.us. Under regulations issued by the Forest Service, these timber sale contracts may require the purchaser to furnish a performance bond for satisfactory compliance with the contract terms. 36 CFR 223.35. Generally, the Performance Bond, as defined in 13 CFR 115.10, ensures that the Principal, as defined in 13 CFR 115.10, complies with all contract terms and conditions associated with forest management, such as the protection of natural resources, soil, water, erosion control, and road maintenance, as well as to ensure the Principal does not cut any trees that are expressly excluded from harvesting in the contract. In the process of cutting and transporting the logs, for example, forest roads may be damaged and the Principal is responsible for repairing the roads. The performance period for most timber sale contracts ranges from one to three years, and some can exceed five years. With respect to a Performance Bond involving the sale of timber on land managed by USDA, the Federal Government is the Obligee, as defined in 13 CFR 115.10, and the purchaser of the timber is the Principal. Unlike the typical contract for supplies or services where the Obligee pays the Principal for providing supplies or rendering services, the Principal in the timber sale contract is paying the Obligee for the right to cut the designated trees. However, under the definition of ‘‘Contract’’ in 13 CFR 115.10, a contract for which SBA may issue a Surety Bond Guarantee cannot include a contract requiring any payment by the Principal to the Obligee. Thus, SBA cannot presently guarantee a bond for a timber sales contract. E:\FR\FM\15OCP1.SGM 15OCP1 63420 Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Proposed Rules SBA is proposing to amend this definition to permit SBA to issue a bond guarantee for a contract that requires the Principal to pay the Obligee for the harvesting of timber. This action is being taken in response to concerns expressed by small businesses that have experienced difficulty obtaining the required bonds for public and private timber sale contracts. Discussions with representatives of the United States Forest Service confirm the need for increased bonding support for small businesses in this area, and it is estimated that approximately 150 small businesses would be eligible for bond guarantee assistance as a result of implementing this Proposed Rule. This change would apply to contracts involving forests managed by the Federal Government or other public or private landowners. SBA invites comments from public and private entities and individuals on how this proposed rule would affect them. II. Section-by-Section Analysis Section 115.10. SBA is proposing to revise the definition of the term ‘‘Contract’’ to allow SBA to issue a performance bond guarantee for a contract that requires the Principal to pay the Obligee for the harvesting of timber on the land of the Obligee. The current definition excludes any contract that requires payment by the Obligee to the Principal. Because this kind of payment is inherent in timber sale contracts, the proposed change makes it clear that timber sale contracts are eligible for performance bond guarantees. Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork Reduction Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 U.S.C. 601–612) mstockstill on DSKH9S0YB1PROD with PROPOSALS Executive Order 12866 The Office of Management and Budget (OMB) has determined that this rule does not constitute a significant regulatory action under Executive Order 12866. This rule is also not a major rule under the Congressional Review Act. Executive Order 12988 This action meets applicable standards set forth in Sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. The action does not have retroactive or preemptive effect. Executive Order 13132 For purposes of Executive Order 13132, SBA has determined that the rule will not have substantial, direct effects VerDate Mar<15>2010 16:00 Oct 14, 2010 Jkt 223001 on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, for the purpose of Executive Order 13132, Federalism, SBA has determined that this Proposed Rule has no federalism implications warranting preparation of a federalism assessment; however, SBA invites comments from the public on this issue. Paperwork Reduction Act, 44 U.S.C., Ch. 35 SBA has determined that this Proposed Rule does not impose additional reporting or recordkeeping requirements under the Paperwork Reduction Act, 44 U.S.C., Chapter 35. Regulatory Flexibility Act, 5 U.S.C. 601– 612 2. Amend § 115.10 by revising the third sentence of the definition ‘‘Contract’’ to read as follows: § 115.10 Definitions. * * * * * Contract * * * A Contract does not include a permit, subdivision contract, lease, land contract, evidence of debt, financial guarantee (e.g., a contract requiring any payment by the Principal to the Obligee, except for contracts for the sale of timber that require the Principal to pay the Obligee), warranty of performance or efficiency, warranty of fidelity, or release of lien (other than for claims under a guaranteed bond). * * * * * * * * Dated: October 8, 2010. Karen G. Mills, Administrator. [FR Doc. 2010–25999 Filed 10–14–10; 8:45 am] The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, requires administrative agencies to consider the effect of their actions on small entities, small nonprofit enterprises, and small local governments. Pursuant to RFA, when an agency issues a rulemaking, the agency must prepare a regulatory flexibility analysis which describes the impact of this rule on small entities. However, section 605 of the RFA allows an agency to certify a rule, in lieu of preparing an analysis, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities. Within the meaning of RFA, SBA certifies that this rule will not have a significant economic impact on a substantial number of small entities. It is estimated that approximately 150 small businesses would now be eligible for bond guarantee assistance from SBA as a result of implementing this Proposed Rule. Additionally, there are 17 Sureties that participate in the SBG Program, and no part of this Proposed Rule would impose any significant additional cost or burden on them. List of Subjects in 13 CFR Part 115 Claims, Small businesses, Surety bonds. For the reasons stated in the preamble, SBA proposes to amend 13 CFR part 115 as follows: PART 115—SURETY BOND GUARANTEE 1. The authority citation for part 115 continues to read as follows: Authority: 5 U.S.C. app. 3, 15 U.S.C. 687b, 687c, 694b, 694b note, Pub. L. 106–554; and Pub. L. 108–447, Div. K, Sec. 203. PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 BILLING CODE 8025–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2010–0959; Directorate Identifier 2010–NM–119–AD] RIN 2120–AA64 Airworthiness Directives; Bombardier, Inc. Model BD–700–1A10 and BD–700– 1A11 Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). AGENCY: We propose to adopt a new airworthiness directive (AD) for the products listed above. This proposed AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: SUMMARY: There have been two in-service reports of main landing gear (MLG) tire failure on landing, during which a flailing tire tread caused damage to No. 2 and No. 3 hydraulic system lines in the wing auxiliary spar area on the left side of the aircraft. This damage resulted in the loss of supply pressure to the inboard and outboard brakes, as the only remaining braking source available was the No. 3 hydraulic system accumulator. The degradation of the brake system performance could adversely affect the aircraft during landing. * E:\FR\FM\15OCP1.SGM * * 15OCP1 * *

Agencies

[Federal Register Volume 75, Number 199 (Friday, October 15, 2010)]
[Proposed Rules]
[Pages 63419-63420]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-25999]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 115

RIN 3245-AG14


Surety Bond Guarantee Program; Timber Sales

AGENCY: Small Business Administration.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Small Business Administration (SBA) proposes to amend its 
Surety Bond Guarantee Program rules to guarantee performance bonds for 
timber sale contracts awarded by the Federal Government or other public 
or private landowners.

DATES: Comments must be received on or before November 15, 2010.

ADDRESSES: You may submit comments, identified by RIN 3245-AG14, by any 
of the following methods:
    Federal eRulemaking Portal: https://www.regulations.gov. Follow the 
instructions for submitting comments.
    Mail: Office of Surety Guarantees, Suite 8600, 409 Third Street, 
SW., Washington, DC 20416.
    Hand Delivery/Courier: Office of Surety Guarantees, 409 Third 
Street, SW., Washington, DC 20416.
    SBA will post all comments on https://www.regulations.gov. If you 
wish to submit confidential business information (CBI) as defined in 
the User Notice at https://www.regulations.gov, please submit 
information to Ms. Barbara Brannan, Special Assistant, Office of Surety 
Guarantees, 409 Third, Street, SW., Washington, DC 20416 or send an e-
mail to Barbara.brannan@sba.gov. Highlight the information that you 
consider to be CBI and explain why you believe SBA should hold this 
information as confidential. SBA will review the information and make 
the final determination whether it will publish the information.

FOR FURTHER INFORMATION CONTACT: Ms. Barbara Brannan, Office of Surety 
Guarantees, 202-205-6545, e-mail: Barbara.brannan@sba.gov.

SUPPLEMENTARY INFORMATION:

I. Background Information

    The Forest Service of the U.S. Department of Agriculture (USDA) 
manages the National Forest System, and may permit the harvesting of 
timber on National Forest System lands in exchange for the payment of 
an agreed upon sum of money. More information on that program is 
available at the Web site of the USDA Forest Service at https://www.fs.fed.us. Under regulations issued by the Forest Service, these 
timber sale contracts may require the purchaser to furnish a 
performance bond for satisfactory compliance with the contract terms. 
36 CFR 223.35. Generally, the Performance Bond, as defined in 13 CFR 
115.10, ensures that the Principal, as defined in 13 CFR 115.10, 
complies with all contract terms and conditions associated with forest 
management, such as the protection of natural resources, soil, water, 
erosion control, and road maintenance, as well as to ensure the 
Principal does not cut any trees that are expressly excluded from 
harvesting in the contract. In the process of cutting and transporting 
the logs, for example, forest roads may be damaged and the Principal is 
responsible for repairing the roads. The performance period for most 
timber sale contracts ranges from one to three years, and some can 
exceed five years.
    With respect to a Performance Bond involving the sale of timber on 
land managed by USDA, the Federal Government is the Obligee, as defined 
in 13 CFR 115.10, and the purchaser of the timber is the Principal. 
Unlike the typical contract for supplies or services where the Obligee 
pays the Principal for providing supplies or rendering services, the 
Principal in the timber sale contract is paying the Obligee for the 
right to cut the designated trees. However, under the definition of 
``Contract'' in 13 CFR 115.10, a contract for which SBA may issue a 
Surety Bond Guarantee cannot include a contract requiring any payment 
by the Principal to the Obligee. Thus, SBA cannot presently guarantee a 
bond for a timber sales contract.

[[Page 63420]]

    SBA is proposing to amend this definition to permit SBA to issue a 
bond guarantee for a contract that requires the Principal to pay the 
Obligee for the harvesting of timber. This action is being taken in 
response to concerns expressed by small businesses that have 
experienced difficulty obtaining the required bonds for public and 
private timber sale contracts. Discussions with representatives of the 
United States Forest Service confirm the need for increased bonding 
support for small businesses in this area, and it is estimated that 
approximately 150 small businesses would be eligible for bond guarantee 
assistance as a result of implementing this Proposed Rule. This change 
would apply to contracts involving forests managed by the Federal 
Government or other public or private landowners. SBA invites comments 
from public and private entities and individuals on how this proposed 
rule would affect them.

II. Section-by-Section Analysis

    Section 115.10. SBA is proposing to revise the definition of the 
term ``Contract'' to allow SBA to issue a performance bond guarantee 
for a contract that requires the Principal to pay the Obligee for the 
harvesting of timber on the land of the Obligee. The current definition 
excludes any contract that requires payment by the Obligee to the 
Principal. Because this kind of payment is inherent in timber sale 
contracts, the proposed change makes it clear that timber sale 
contracts are eligible for performance bond guarantees.

Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork 
Reduction Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 
U.S.C. 601-612)

Executive Order 12866
    The Office of Management and Budget (OMB) has determined that this 
rule does not constitute a significant regulatory action under 
Executive Order 12866. This rule is also not a major rule under the 
Congressional Review Act.
Executive Order 12988
    This action meets applicable standards set forth in Sections 3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. The action does not 
have retroactive or preemptive effect.
Executive Order 13132
    For purposes of Executive Order 13132, SBA has determined that the 
rule will not have substantial, direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, for the purpose of Executive Order 13132, 
Federalism, SBA has determined that this Proposed Rule has no 
federalism implications warranting preparation of a federalism 
assessment; however, SBA invites comments from the public on this 
issue.
Paperwork Reduction Act, 44 U.S.C., Ch. 35
    SBA has determined that this Proposed Rule does not impose 
additional reporting or recordkeeping requirements under the Paperwork 
Reduction Act, 44 U.S.C., Chapter 35.
Regulatory Flexibility Act, 5 U.S.C. 601-612
    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, requires 
administrative agencies to consider the effect of their actions on 
small entities, small non-profit enterprises, and small local 
governments. Pursuant to RFA, when an agency issues a rulemaking, the 
agency must prepare a regulatory flexibility analysis which describes 
the impact of this rule on small entities. However, section 605 of the 
RFA allows an agency to certify a rule, in lieu of preparing an 
analysis, if the rulemaking is not expected to have a significant 
economic impact on a substantial number of small entities. Within the 
meaning of RFA, SBA certifies that this rule will not have a 
significant economic impact on a substantial number of small entities. 
It is estimated that approximately 150 small businesses would now be 
eligible for bond guarantee assistance from SBA as a result of 
implementing this Proposed Rule. Additionally, there are 17 Sureties 
that participate in the SBG Program, and no part of this Proposed Rule 
would impose any significant additional cost or burden on them.

List of Subjects in 13 CFR Part 115

    Claims, Small businesses, Surety bonds.
    For the reasons stated in the preamble, SBA proposes to amend 13 
CFR part 115 as follows:

PART 115--SURETY BOND GUARANTEE

    1. The authority citation for part 115 continues to read as 
follows:

    Authority: 5 U.S.C. app. 3, 15 U.S.C. 687b, 687c, 694b, 694b 
note, Pub. L. 106-554; and Pub. L. 108-447, Div. K, Sec. 203.

    2. Amend Sec.  115.10 by revising the third sentence of the 
definition ``Contract'' to read as follows:


Sec.  115.10  Definitions.

* * * * *
    Contract * * * A Contract does not include a permit, subdivision 
contract, lease, land contract, evidence of debt, financial guarantee 
(e.g., a contract requiring any payment by the Principal to the 
Obligee, except for contracts for the sale of timber that require the 
Principal to pay the Obligee), warranty of performance or efficiency, 
warranty of fidelity, or release of lien (other than for claims under a 
guaranteed bond). * * *
* * * * *

    Dated: October 8, 2010.
Karen G. Mills,
Administrator.
[FR Doc. 2010-25999 Filed 10-14-10; 8:45 am]
BILLING CODE 8025-01-P
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