81 FR 66529 - Gulf Coast Restoration Trust Fund
DEPARTMENT OF THE TREASURY Federal Register Volume 81, Issue 188 (September 28, 2016)
Federal Register Volume 81, Issue 188 (September 28, 2016)
| Page Range | 66529-66530 | |
| FR Document | 2016-23348 |
[Federal Register Volume 81, Number 188 (Wednesday, September 28, 2016)] [Rules and Regulations] [Pages 66529-66530] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-23348] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY 31 CFR Part 34 RIN 1505-AC52 Gulf Coast Restoration Trust Fund AGENCY: Office of the Fiscal Assistant Secretary, Treasury. ACTION: Interim Final Rule. ----------------------------------------------------------------------- SUMMARY: The Department of the Treasury is issuing this Interim Final Rule to change when the statutory three percent cap on administrative expenses is applied to the Gulf Coast Ecosystem Restoration Council (Council) under the Resources and Ecosystem Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE Act or Act). DATES: Effective date for the Interim Final Rule: September 28, 2016. Written comments on the Interim Final Rule must be received on or before: November 14, 2016. ADDRESSES: Treasury invites comments on the topic addressed in this Interim Final Rule. Comments may be submitted by any of the following methods: Electronic Submission of Comments: Interested persons may submit comments electronically through the Federal eRulemaking Portal at http://www.regulations.gov. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt, and enables the Department to make them available to the public. Comments submitted electronically through the http://www.regulations.gov Web site can be viewed by other commenters and interested members of the public. Mail: Send to Department of the Treasury, Attention Janet Vail, Office of Gulf Coast Restoration, Office of the Fiscal Assistant Secretary, Room 2112; 1500 Pennsylvania Avenue NW., Washington, DC 20220. In general, Treasury will post all comments to http://www.regulations.gov without change, including any business or personal information provided, such as names, addresses, email addresses, or telephone numbers. Treasury also will make such comments available for public inspection and copying in Treasury's Library, Department of the Treasury, 1500 Pennsylvania Avenue NW., Washington, DC 20220, on official business days between the hours of 10:00 a.m. and 5:00 p.m. Eastern Time. All comments received, including attachments and other supporting materials, will be part of the public record and subject to public disclosure. You should submit only information that you wish to make publicly available. FOR FURTHER INFORMATION CONTACT: Janet Vail, Office of Gulf Coast Restoration, [email protected] or 202-622-6873. SUPPLEMENTARY INFORMATION: I. Background The Act makes funds available for the restoration and protection of the Gulf Coast region, and certain programs with respect to the Gulf of Mexico, through a trust fund in the Treasury of the United States known as the Gulf Coast Restoration Trust Fund (trust fund). The trust fund holds 80 percent of the administrative and civil penalties paid after July 6, 2012, under the Federal Water Pollution Control Act in connection with the Deepwater Horizon Oil Spill. The Act gives Treasury several roles in administering the trust fund. One role is to establish procedures, in consultation with the Departments of the Interior and Commerce, concerning the expenditure of amounts from the trust fund and compliance measures for the programs and activities carried out under the Act. On December 14, 2015, Treasury promulgated final regulations on the RESTORE Act, 80 FR 77239, which became effective on February 12, 2016. The Act established an independent Federal entity, the Gulf Coast Ecosystem Restoration Council (Council), to administer certain components of the Act, including the Comprehensive Plan Component. The Council is comprised of members from six Federal agencies or departments and the five Gulf Coast States. One of the Federal members, currently the Secretary of Agriculture, serves as Chairperson of the Council. The authority for the Council terminates on the date all funds in the trust fund have been expended. The Council is responsible for developing and implementing a Comprehensive Plan to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands of the Gulf Coast region. To carry out the Comprehensive Plan, the Act makes available to the Council, 30 percent of penalties deposited into the trust fund plus one half of interest earned on trust fund investments. The Act provides that ``[o]f the amounts received by the Council . . . , not more than 3 percent may be used for administrative expenses, including staff,'' to carry out the Comprehensive Plan. 33 U.S.C. 1321(t)(2)(B)(iii). The Act does not specify when the statutory three percent cap on administrative expenses is applied to the Council.\1\ In its final regulations, Treasury specified that ``the three percent limit is applied to the total amount of funds received by the Council, beginning with the first fiscal year the Council receives funds through the end of the fourth, or most recent fiscal year, whichever is later.'' 31 CFR 34.204(b). The final regulations recognized that as a new independent Federal entity, the Council's startup administrative expenses would be greater in its initial years, and as a result the final regulations apply the three percent cap for administrative expenses at the end of the fourth fiscal year, and at the end of each fiscal year thereafter. --------------------------------------------------------------------------- \1\ Treasury considered whether the three percent limitation applies at any time, but determined that Congress did not provide for such a requirement. Specifically, the Act was enacted as part of Moving Ahead for Progress in the 21st Century Act (MAP-21). MAP-21 contains non-RESTORE Act sections that include limitations that apply ``at any time.'' See MAP-21 Sec. 100121. Treasury believes that if Congress had intended the three percent limitation on administrative expenses to apply ``at any time,'' Congress would have included those words in the RESTORE Act just as it did elsewhere in MAP-21. Moreover, such a requirement would undermine the RESTORE Act's purpose of ensuring effective and long-term planning in the restoration of the Gulf Coast. --------------------------------------------------------------------------- However, in the Supplementary Information section of the final regulations, Treasury stated that it ``will propose to cap the Council's administrative expenses at three percent of amounts the Council receives under the Comprehensive Plan Component before the termination of the Trust Fund,'' and open this proposal for a 45 day comment period.\2\ Under this formulation, the application of the three percent limit to the Council's administrative expenses would be extended from the end of the fourth fiscal year to the date that the trust fund terminates. Treasury expects that the trust fund will terminate after 2032. Treasury included this language because the Council expressed a need for more flexibility on when the statutory three [[Page 66530]] percent cap on administrative expenses will be applied. Specifically, Treasury understands that the Council anticipated its annual administrative expenses would remain relatively constant, while the amount of funds received and transferred by the Council for projects undertaken by its members may vary considerably from one year to the next, depending on the Council's funded priorities list. The Council also anticipated that its members would seek to fund large-scale projects under the Comprehensive Plan Component, but anticipated that such large-scale projects would occur in later years after sufficient civil penalties had been deposited into the trust fund. Treasury supports the Council's goal of restoring and protecting the Gulf Coast region under the Comprehensive Plan Component, and is amending section 34.204(b), with a 45 day comment period. --------------------------------------------------------------------------- \2\ 80 FR 77239, 77241. --------------------------------------------------------------------------- II. This Interim Rule For the reasons described above, Treasury is amending when the statutory three percent cap on administrative expenses is applied to the Council under 31 CFR 34.204(b). This Interim Final Rule provides that the Council's three percent limit applies to the total amount the Council will receive under the Comprehensive Plan Component and ensures that the Council will not exceed the statutory three percent cap before the termination of the trust fund. Specifically, the Interim Final Rule provides that amounts used by the Council for administrative expenses may not at any time exceed three percent of the total of the amounts received by the Council from the trust fund and the amounts in the trust fund that are allocated to, but not yet received by, the Council. Treasury believes that this Interim Final Rule balances the Council's need for greater flexibility with compliance with the statutory limitation. The Interim Final Rule amends only section 34.204(b) pertaining to when the three percent cap on administrative expenses is measured. It does not amend the definition of ``administrative expenses'' found at section 34.2. Nor does it amend section 34.204(a) regarding limitations on administrative costs associated with grants from the Council under the Comprehensive Plan Component.\3\ --------------------------------------------------------------------------- \3\ The final regulations define the term ``administrative expenses.'' 31 CFR 34.2. Note that the final regulations distinguish ``administrative expenses'' from ``administrative costs,'' also defined in 31 CFR 34.2. --------------------------------------------------------------------------- Treasury requests public comment on the amendment to section 34.204(b). III. Procedural Requirements A. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply. B. Regulatory Planning and Review (Executive Orders 12866 and 13563) The amendment to the regulation is a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Accordingly, it has been reviewed by the Office of Management and Budget. C. Administrative Procedure Act The Administrative Procedure Act (5 U.S.C. 551 et seq.) (APA) provides that agencies issue regulations with prior notice and an opportunity for public comment and that rules should become effective 30 days after publication in the Federal Register. See 5 U.S.C. 553. The APA, however, allows agencies to dispense with these procedures when the agency finds that good cause exists. In this case, Treasury finds that good cause exists to dispense with prior notice and comment procedures and make this rule immediately effective. As discussed earlier in the preamble, the revision in this Interim Final Rule amends when the Council calculates the statutorily required three percent administrative expense limitation, and does not impose any new obligations on the Act's eligible recipients. While Treasury had previously indicated it would issue a proposed rule, Treasury has determined that the revision will have minimal, and more than likely no, effect on the Act's eligible recipients. Nor does the Interim Final Rule impact the receipt and deposit into the trust fund of the civil penalties which are generally fixed by consent decree. Finally, the revision will help ensure that the Council can continue to function effectively by supporting predictable, long term financial planning and operations. As a result, Treasury has determined that prior notice and comment and a delayed effective date are unnecessary and that good cause exists to make this Interim Final Rule effective immediately. List of Subjects in 31 CFR Part 34 Coastal zone, Fisheries, Grant programs, Grants administration, Intergovernmental relations, Marine resources, Natural resources, Oil pollution, Research, Science and technology, Trusts, Wildlife. For the reasons set forth herein, the Department of the Treasury amends 31 CFR part 34 to read as follows: PART 34--RESOURCES AND ECOSYSTEMS SUSTAINABILITY, TOURIST OPPORTUNITIES, AND REVIVED ECONOMIES OF THE GULF COAST STATES 0 1. The authority citation for part 34 continues to read as follows: Authority: 31 U.S.C. 301; 31 U.S.C. 321; 33 U.S.C. 1251 et seq. 0 2. Revise paragraph (b) of Sec. 34.204 to read as follows: Sec. 34.204 Limitations on administrative costs and administrative expenses. * * * * * (b) Of the amounts received by the Council under the Comprehensive Plan Component, not more than three percent may be used for administrative expenses. The three percent limit is applied to the amounts it receives under the Comprehensive Plan Component before termination of the Trust Fund. Amounts used for administrative expenses may not at any time exceed three percent of the total of the amounts received by the Council and the amounts in the Trust Fund that are allocated to, but not yet received by, the Council under Sec. 34.103. David A. Lebryk, Fiscal Assistant Secretary. [FR Doc. 2016-23348 Filed 9-27-16; 8:45 am] BILLING CODE 4810-25-P
![Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations 66529
II. Electronic Access without change, including any business ecosystems, fisheries, marine and
Persons with access to the Internet or personal information provided, such wildlife habitats, beaches, and coastal
may obtain the guidance at either http:// as names, addresses, email addresses, or wetlands of the Gulf Coast region. To
www.fda.gov/FoodGuidances or http:// telephone numbers. Treasury also will carry out the Comprehensive Plan, the
www.regulations.gov. Use the FDA Web make such comments available for Act makes available to the Council, 30
sites listed in the previous sentence to public inspection and copying in percent of penalties deposited into the
find the most current version of the Treasury’s Library, Department of the trust fund plus one half of interest
guidance. Treasury, 1500 Pennsylvania Avenue earned on trust fund investments.
NW., Washington, DC 20220, on official The Act provides that ‘‘[o]f the
Dated: September 23, 2016. amounts received by the Council . . . ,
business days between the hours of
Leslie Kux, 10:00 a.m. and 5:00 p.m. Eastern Time. not more than 3 percent may be used for
Associate Commissioner for Policy. All comments received, including administrative expenses, including
[FR Doc. 2016–23367 Filed 9–27–16; 8:45 am] attachments and other supporting staff,’’ to carry out the Comprehensive
BILLING CODE 4164–01–P materials, will be part of the public Plan. 33 U.S.C. 1321(t)(2)(B)(iii).
record and subject to public disclosure. The Act does not specify when the
You should submit only information statutory three percent cap on
DEPARTMENT OF THE TREASURY that you wish to make publicly administrative expenses is applied to
available. the Council.1 In its final regulations,
31 CFR Part 34 Treasury specified that ‘‘the three
FOR FURTHER INFORMATION CONTACT: percent limit is applied to the total
RIN 1505–AC52 Janet Vail, Office of Gulf Coast amount of funds received by the
Restoration, restoreact@treasury.gov or Council, beginning with the first fiscal
Gulf Coast Restoration Trust Fund 202–622–6873. year the Council receives funds through
AGENCY: Office of the Fiscal Assistant SUPPLEMENTARY INFORMATION: the end of the fourth, or most recent
Secretary, Treasury. fiscal year, whichever is later.’’ 31 CFR
I. Background
ACTION: Interim Final Rule. 34.204(b). The final regulations
The Act makes funds available for the recognized that as a new independent
SUMMARY: The Department of the restoration and protection of the Gulf Federal entity, the Council’s startup
Treasury is issuing this Interim Final Coast region, and certain programs with administrative expenses would be
Rule to change when the statutory three respect to the Gulf of Mexico, through greater in its initial years, and as a result
percent cap on administrative expenses a trust fund in the Treasury of the the final regulations apply the three
is applied to the Gulf Coast Ecosystem United States known as the Gulf Coast percent cap for administrative expenses
Restoration Council (Council) under the Restoration Trust Fund (trust fund). The at the end of the fourth fiscal year, and
Resources and Ecosystem Sustainability, trust fund holds 80 percent of the at the end of each fiscal year thereafter.
Tourist Opportunities, and Revived administrative and civil penalties paid However, in the Supplementary
Economies of the Gulf Coast States Act after July 6, 2012, under the Federal Information section of the final
of 2012 (RESTORE Act or Act). Water Pollution Control Act in regulations, Treasury stated that it ‘‘will
DATES: Effective date for the Interim connection with the Deepwater Horizon propose to cap the Council’s
Final Rule: September 28, 2016. Written Oil Spill. The Act gives Treasury several administrative expenses at three percent
comments on the Interim Final Rule roles in administering the trust fund. of amounts the Council receives under
must be received on or before: One role is to establish procedures, in the Comprehensive Plan Component
November 14, 2016. consultation with the Departments of before the termination of the Trust
ADDRESSES: Treasury invites comments the Interior and Commerce, concerning Fund,’’ and open this proposal for a 45
on the topic addressed in this Interim the expenditure of amounts from the day comment period.2 Under this
Final Rule. Comments may be submitted trust fund and compliance measures for formulation, the application of the three
by any of the following methods: the programs and activities carried out percent limit to the Council’s
Electronic Submission of Comments: under the Act. On December 14, 2015, administrative expenses would be
Interested persons may submit Treasury promulgated final regulations extended from the end of the fourth
comments electronically through the on the RESTORE Act, 80 FR 77239, fiscal year to the date that the trust fund
Federal eRulemaking Portal at http:// which became effective on February 12, terminates. Treasury expects that the
www.regulations.gov. Electronic 2016. trust fund will terminate after 2032.
submission of comments allows the The Act established an independent Treasury included this language because
commenter maximum time to prepare Federal entity, the Gulf Coast Ecosystem the Council expressed a need for more
and submit a comment, ensures timely Restoration Council (Council), to flexibility on when the statutory three
receipt, and enables the Department to administer certain components of the
make them available to the public. Act, including the Comprehensive Plan 1 Treasury considered whether the three percent
Comments submitted electronically Component. The Council is comprised limitation applies at any time, but determined that
Congress did not provide for such a requirement.
through the http://www.regulations.gov of members from six Federal agencies or Specifically, the Act was enacted as part of Moving
Web site can be viewed by other departments and the five Gulf Coast Ahead for Progress in the 21st Century Act (MAP–
commenters and interested members of States. One of the Federal members, 21). MAP–21 contains non-RESTORE Act sections
the public. currently the Secretary of Agriculture, that include limitations that apply ‘‘at any time.’’
See MAP–21 § 100121. Treasury believes that if
Mail: Send to Department of the serves as Chairperson of the Council.
sradovich on DSK3GMQ082PROD with RULES
Congress had intended the three percent limitation
Treasury, Attention Janet Vail, Office of The authority for the Council terminates on administrative expenses to apply ‘‘at any time,’’
Gulf Coast Restoration, Office of the on the date all funds in the trust fund Congress would have included those words in the
Fiscal Assistant Secretary, Room 2112; have been expended. RESTORE Act just as it did elsewhere in MAP–21.
The Council is responsible for Moreover, such a requirement would undermine
1500 Pennsylvania Avenue NW., the RESTORE Act’s purpose of ensuring effective
Washington, DC 20220. developing and implementing a and long-term planning in the restoration of the
In general, Treasury will post all Comprehensive Plan to restore and Gulf Coast.
comments to http://www.regulations.gov protect the natural resources, 2 80 FR 77239, 77241.
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![66530 Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Rules and Regulations
percent cap on administrative expenses III. Procedural Requirements For the reasons set forth herein, the
will be applied. Specifically, Treasury Department of the Treasury amends 31
understands that the Council A. Regulatory Flexibility Act CFR part 34 to read as follows:
anticipated its annual administrative Because no notice of proposed
expenses would remain relatively PART 34—RESOURCES AND
rulemaking is required, the provisions
constant, while the amount of funds ECOSYSTEMS SUSTAINABILITY,
of the Regulatory Flexibility Act (5
received and transferred by the Council TOURIST OPPORTUNITIES, AND
U.S.C. 601 et seq.) do not apply.
for projects undertaken by its members REVIVED ECONOMIES OF THE GULF
may vary considerably from one year to B. Regulatory Planning and Review COAST STATES
the next, depending on the Council’s (Executive Orders 12866 and 13563)
■ 1. The authority citation for part 34
funded priorities list. The Council also
The amendment to the regulation is a continues to read as follows:
anticipated that its members would seek
to fund large-scale projects under the significant regulatory action as defined Authority: 31 U.S.C. 301; 31 U.S.C. 321; 33
Comprehensive Plan Component, but in Executive Order 12866, as U.S.C. 1251 et seq.
anticipated that such large-scale projects supplemented by Executive Order ■ 2. Revise paragraph (b) of § 34.204 to
would occur in later years after 13563. Accordingly, it has been read as follows:
sufficient civil penalties had been reviewed by the Office of Management
deposited into the trust fund. Treasury and Budget. § 34.204 Limitations on administrative
costs and administrative expenses.
supports the Council’s goal of restoring C. Administrative Procedure Act
and protecting the Gulf Coast region * * * * *
under the Comprehensive Plan The Administrative Procedure Act (5 (b) Of the amounts received by the
Component, and is amending section U.S.C. 551 et seq.) (APA) provides that Council under the Comprehensive Plan
34.204(b), with a 45 day comment agencies issue regulations with prior Component, not more than three percent
period. notice and an opportunity for public may be used for administrative
comment and that rules should become expenses. The three percent limit is
II. This Interim Rule effective 30 days after publication in the applied to the amounts it receives under
For the reasons described above, Federal Register. See 5 U.S.C. 553. The the Comprehensive Plan Component
Treasury is amending when the APA, however, allows agencies to before termination of the Trust Fund.
statutory three percent cap on dispense with these procedures when Amounts used for administrative
administrative expenses is applied to the agency finds that good cause exists. expenses may not at any time exceed
the Council under 31 CFR 34.204(b). In this case, Treasury finds that good three percent of the total of the amounts
This Interim Final Rule provides that cause exists to dispense with prior received by the Council and the
the Council’s three percent limit applies notice and comment procedures and amounts in the Trust Fund that are
to the total amount the Council will make this rule immediately effective. As allocated to, but not yet received by, the
receive under the Comprehensive Plan discussed earlier in the preamble, the Council under § 34.103.
Component and ensures that the revision in this Interim Final Rule David A. Lebryk,
Council will not exceed the statutory amends when the Council calculates the Fiscal Assistant Secretary.
three percent cap before the termination statutorily required three percent [FR Doc. 2016–23348 Filed 9–27–16; 8:45 am]
of the trust fund. Specifically, the administrative expense limitation, and
BILLING CODE 4810–25–P
Interim Final Rule provides that does not impose any new obligations on
amounts used by the Council for the Act’s eligible recipients. While
administrative expenses may not at any Treasury had previously indicated it
time exceed three percent of the total of would issue a proposed rule, Treasury DEPARTMENT OF HOMELAND
the amounts received by the Council has determined that the revision will SECURITY
from the trust fund and the amounts in have minimal, and more than likely no, Coast Guard
the trust fund that are allocated to, but effect on the Act’s eligible recipients.
not yet received by, the Council. Nor does the Interim Final Rule impact 33 CFR Part 165
Treasury believes that this Interim Final the receipt and deposit into the trust
Rule balances the Council’s need for fund of the civil penalties which are [Docket Number USCG–2016–0883]
greater flexibility with compliance with generally fixed by consent decree. RIN 1625–AA00
the statutory limitation. The Interim Finally, the revision will help ensure
Final Rule amends only section that the Council can continue to Safety Zone; Main Branch of the
34.204(b) pertaining to when the three function effectively by supporting Chicago River, Chicago, IL
percent cap on administrative expenses predictable, long term financial
AGENCY: Coast Guard, DHS.
is measured. It does not amend the planning and operations. As a result,
definition of ‘‘administrative expenses’’ Treasury has determined that prior ACTION: Temporary final rule.
found at section 34.2. Nor does it amend notice and comment and a delayed SUMMARY: The Coast Guard is
section 34.204(a) regarding limitations effective date are unnecessary and that establishing a temporary safety zone on
on administrative costs associated with good cause exists to make this Interim the Main Branch of the Chicago River,
grants from the Council under the Final Rule effective immediately. Chicago, IL. This action is necessary and
Comprehensive Plan Component.3 intended to ensure safety of life on the
List of Subjects in 31 CFR Part 34
sradovich on DSK3GMQ082PROD with RULES
Treasury requests public comment on navigable waters of the United States
the amendment to section 34.204(b). Coastal zone, Fisheries, Grant immediately prior to, during, and after
programs, Grants administration, the filming of a motion picture from a
3 The final regulations define the term
Intergovernmental relations, Marine low flying helicopter. Entry of vessels or
‘‘administrative expenses.’’ 31 CFR 34.2. Note that
the final regulations distinguish ‘‘administrative
resources, Natural resources, Oil persons into this zone is prohibited
expenses’’ from ‘‘administrative costs,’’ also defined pollution, Research, Science and unless specifically authorized by the
in 31 CFR 34.2. technology, Trusts, Wildlife. Captain of the Port Lake Michigan.
VerDate Sep<11>2014 17:53 Sep 27, 2016 Jkt 238001 PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 E:\FR\FM\28SER1.SGM 28SER1](https://thefederalregister.org/doc/81_FR_66717/page/2.svg)
Document Created: 2016-09-28 01:08:42
Document Modified: 2016-09-28 01:08:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Interim Final Rule. | |
| Dates | Effective date for the Interim Final Rule: September 28, 2016. Written comments on the Interim Final Rule must be received on or before: November 14, 2016. | |
| Contact | Janet Vail, Office of Gulf Coast Restoration, [email protected] or 202-622-6873. | |
| FR Citation | 81 FR 66529 | |
| RIN Number | 1505-AC52 | |
| CFR Associated | Coastal Zone; Fisheries; Grant Programs; Grants Administration; Intergovernmental Relations; Marine Resources; Natural Resources; Oil Pollution; Research; Science and Technology; Trusts and Wildlife |
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