83_FR_29814 83 FR 29691 - Previously-Incurred Costs in the WIFIA Program

83 FR 29691 - Previously-Incurred Costs in the WIFIA Program

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 83, Issue 123 (June 26, 2018)

Page Range29691-29694
FR Document2018-13714

With this interim final rule Environmental Protection Agency (EPA) is amending the Water Infrastructure Finance and Innovation Act (WIFIA) regulations to clarify the process for, and conditions under which, a recipient of WIFIA credit assistance can include costs incurred, and the value of integral in-kind contributions made, before receipt of assistance in the calculation of total eligible costs, and can be reimbursed for certain of those costs by WIFIA loan proceeds. This interim final rule pertains to a matter involving a federal loan and loan guarantee program and is therefore exempt from the rulemaking requirements of the Administrative Procedure Act. As such, EPA is issuing this rule as interim final.

Federal Register, Volume 83 Issue 123 (Tuesday, June 26, 2018)
[Federal Register Volume 83, Number 123 (Tuesday, June 26, 2018)]
[Rules and Regulations]
[Pages 29691-29694]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13714]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 35

[EPA-HQ-OW-2016-0569; FRL-9979-90-OW]


Previously-Incurred Costs in the WIFIA Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Interim final rule.

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

SUMMARY: With this interim final rule Environmental Protection Agency 
(EPA) is amending the Water Infrastructure Finance and Innovation Act 
(WIFIA) regulations to clarify the process for, and conditions under 
which, a recipient of WIFIA credit assistance can include costs 
incurred, and the value of integral in-kind contributions made, before 
receipt of assistance in the calculation of total eligible costs, and 
can be reimbursed for certain of those costs by WIFIA loan proceeds. 
This interim final rule pertains to a matter involving a federal loan 
and loan guarantee program and is therefore exempt from the rulemaking 
requirements of the Administrative Procedure Act. As such, EPA is 
issuing this rule as interim final.

DATES: This rule is effective on June 26, 2018. Comments must be 
received on or before August 27, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-OW-
2016-0569, at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential

[[Page 29692]]

Business Information (CBI) or other information whose disclosure is 
restricted by statute. Multimedia submissions (audio, video, etc.) must 
be accompanied by a written comment. The written comment is considered 
the official comment and should include discussion of all points you 
wish to make. The EPA will generally not consider comments or comment 
contents located outside of the primary submission (i.e., on the web, 
cloud, or other file sharing system). For additional submission 
methods, the full EPA public comment policy, information about CBI or 
multimedia submissions, and general guidance on making effective 
comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Jordan Dorfman, Water Infrastructure 
Division, Office of Wastewater Management, Mail Code 4201C, 
Environmental Protection Agency, 1200 Pennsylvania Avenue NW, 
Washington, DC, 20460; telephone number: (202) 564-0614; email address: 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. General Information

A. Does this action apply to me?

    This action only applies to entities seeking credit assistance 
under the WIFIA program for the development and construction of a water 
infrastructure project. EPA has promulgated regulations to implement 
this program. A list of eligible entities and eligible projects can be 
found at 33 U.S.C. 3904 and 3905 and the Interim Final Rule at 40 CFR 
35.10005.

B. What should I consider as I prepare my comments for EPA?

    Submitting Confidential Business Information (CBI). Do not submit 
this information to EPA through regulations.gov or email. Clearly mark 
the part or all of the information that you claim to be CBI. For CBI 
information on a disk, CD-ROM, or flash drive that you mail to EPA, 
mark the outside of the disk, CD-ROM, or flash drive as CBI and then 
identify electronically within the disk, CD-ROM, or flash drive the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    Tips for preparing your comments. When submitting comments, 
remember to:
     Identify the document by docket ID number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Explain why you agree or disagree; suggest alternatives 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns and 
suggest alternatives.
     Explain your views as clearly as possible.
     Make sure to submit your comments by the comment period 
deadline identified.

II. Background

A. What action is the Agency taking?

    Section 5008(c)(2) of the Water Infrastructure Improvements for the 
Nation Act, Public Law 114-322, added section 5029(b)(10) (33 U.S.C. 
3908(b)(10)) to the WIFIA authorizing legislation. This section 
requires that any eligible project costs incurred, and the value of any 
integral in-kind contributions made, before receipt of assistance be 
credited toward the 51 percent of project costs to be provided by 
sources of funding other than a WIFIA loan. 33 U.S.C. 3908(b)(10). This 
section provides WIFIA borrowers the opportunity to include costs 
incurred prior to receipt of assistance and the value of integral in-
kind contributions made before receipt of assistance, in the 
calculation of total eligible costs in order to calculate the size of 
the loan. However, it does not address what costs can be reimbursed. 
The size of the project is important in determining the amount of 
funding that may be awarded to the WIFIA borrower (``size of the 
loan'') because the statute, at 33 U.S.C. 3908(b)(2)(A), limits the 
size of the loan to 49 percent of the total reasonably anticipated 
eligible costs for the project. Instead of addressing the reimbursement 
of costs, 33 U.S.C. 3908(b)(10) uses the term ``credited'' and directs 
that certain costs be credited toward a category of costs, the 51 
percent to be provided by a non-WIFIA source. Importantly, the statute 
does not prohibit the use of a WIFIA loan to reimburse eligible costs 
incurred prior to receipt of assistance. The WIFIA loan can therefore 
be used to reimburse any eligible cost, whether or not incurred prior 
to the receipt of assistance, except for the value of in-kind 
contributions which do not represent out-of-pocket costs to a borrower 
and are not costs for which a borrower would typically seek 
reimbursement or payment.
    For these reasons, EPA is clarifying current regulations by adding 
to 40 CFR 35.10010(c) the clause ``value of any integral in-kind 
contributions made'' to allow these costs to be included in the 
calculation of eligible project costs and by changing ``prior to a 
project sponsor's submission of an application for credit assistance'' 
to ``before receipt of credit assistance'' to ensure that all such 
costs and integral in-kind contributions are included. EPA is also 
adding the clause, ``such costs, excluding the value of any integral 
in-kind contributions, are payable from the proceeds of the WIFIA 
credit instrument'' to ensure that such costs may be reimbursed from 
WIFIA loan proceeds.
    Crediting prior costs and the value of integral in-kind 
contributions to the project increases the size of the project and, by 
extension, may increase the size of the WIFIA loan. For example, if a 
borrower has incurred $110 million in costs prior to the receipt of 
assistance, and anticipates incurring $90 million in costs after 
receipt of assistance, the size of the project would be $200 million. 
Looking at 33 U.S.C. 3908(b)(2)(A) in isolation, EPA could potentially 
fund up to 49 percent of that $200 million, or $98 million. However, by 
further directing that the costs incurred and contributions made prior 
to receipt of assistance be credited toward the 51 percent of project 
costs to be provided by sources of funding other than WIFIA, 
3908(b)(10) serves to limit the size of the loan if the borrower has 
completed a substantial portion of the overall project. In this example 
project, the size of the loan would be limited to $90 million because 
the $110 million of costs incurred prior to receipt of assistance must 
be credited to the 51 percent category of costs to be provided by non-
WIFIA sources of funding, leaving only $90 million to be funded by 
WIFIA.
    Costs and in-kind contributions must be directly related to the 
development or execution of the project including, for example, 
preliminary design, right-of-way acquisition, National Environmental 
Policy Act (NEPA) compliance related costs, and construction related 
costs. The WIFIA program retains the right to ask for appropriate 
documentation as evidence of such costs and in-kind contributions for 
sizing of the WIFIA loan and, in the

[[Page 29693]]

case of incurred costs, for reimbursement.
    In addition, 40 CFR 35.10010(c) is amended by removing ``[i]n 
addition, applicants shall not include application charges or any other 
expenses associated with the application process (such as charges 
associated with obtaining the required preliminary rating opinion 
letter) among the eligible project costs.'' This sentence is redundant 
because 40 CFR 35.10005 provides a definition of eligible project costs 
from which the determination of eligibility of a cost can be 
determined. It causes confusion because it implies that fees charged by 
the WIFIA program cannot be included as an eligible project cost even 
though they are specifically allowed to be financed as part of a WIFIA 
loan by statute at 33 U.S.C. 3908(b)(7)(B). Furthermore, EPA has 
determined that the cost of obtaining rating opinion letters is 
eligible under 33 U.S.C. 3906(4) which states that ``capitalized 
interest necessary to meet market requirements, reasonably required 
reserve funds, capital issuance expenses, and other carrying costs 
during construction'' are eligible costs.

B. What is the Agency's authority for taking this action?

    This interim final rule is issued under the authority of 33 U.S.C. 
3908(b)(10) and 3911.

III. Statutory and Executive Orders Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action.

B. Executive Order 13771

    This rule is not an E.O. 13771 regulatory action because this rule 
is not significant under E.O. 12866.

C. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the PRA because this rule merely establishes the process for, and 
conditions under which, a recipient of WIFIA credit assistance can 
include costs incurred, and the value of integral in-kind contributions 
made, before receipt of assistance in the calculation of total eligible 
costs, and can be reimbursed for certain of those costs by WIFIA loan 
proceeds.

D. Regulatory Flexibility Act

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. With this interim final rule, the EPA is 
amending the WIFIA regulations to clarify the process for, and 
conditions under which, a recipient of WIFIA credit assistance can 
include costs incurred, and the value of integral in-kind contributions 
made, before receipt of assistance in the calculation of total eligible 
costs, and can be reimbursed for certain of those costs by WIFIA loan 
proceeds. This interim final rule does not impose costs on small 
entities applying for a WIFIA loan. I have therefore concluded that 
this action will have no net regulatory burden for all directly 
regulated small entities.

E. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action imposes 
no enforceable duty on any state, local, or tribal governments or the 
private sector.

F. Executive Order 13132: Federalism

    This action does not have federalism implications. It 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.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175. While a tribal government, or a consortium of 
tribal governments may apply for WIFIA credit assistance, this action 
does not have substantial direct effects on one or more Indian tribes, 
on the relationship between the Federal Government and Indian tribes, 
or on the distribution of power and responsibilities between the 
Federal Government and Indian tribes.

H. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    This action is not subject to Executive Order 13045 because it is 
not economically significant as defined in Executive Order 12866, and 
because environmental health or safety risks are not addressed by this 
action.

I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not a ``significant energy action'' because it is 
not likely to have a significant adverse effect on the supply, 
distribution or use of energy. This rulemaking simply establishes the 
process for, and conditions under which, a recipient of WIFIA credit 
assistance can include costs incurred, and the value of integral in-
kind contributions made, before receipt of assistance in the 
calculation of total eligible costs, and can be reimbursed for certain 
of those costs by WIFIA loan proceeds.

J. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

K. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    This action is not subject to Executive Order 12898 (59 FR 7629, 
February 16, 1994) because it does not establish an environmental 
health or safety standard.

L. National Environmental Policy Act

    Each project obtaining assistance under this program is required to 
adhere to the National Environmental Policy Act of 1969, as amended (42 
U.S.C. 4321-4370). This rulemaking simply establishes the process for, 
and conditions under which, a recipient of WIFIA credit assistance can 
include costs incurred, and the value of integral in-kind contributions 
made, before receipt of assistance in the calculation of total eligible 
costs, and can be reimbursed for certain of those costs by WIFIA loan 
proceeds; therefore, by itself, this rulemaking will not have any 
effect on the quality of the environment.

List of Subjects in 40 CFR Part 35

    Environmental protection, Reporting and recordkeeping requirements, 
and Water finance.


[[Page 29694]]


    Dated: June 18, 2018.
E. Scott Pruitt,
Administrator.

    For the reasons set forth in the preamble, 40 CFR part 35 is 
amended as follows:

PART 35--STATE AND LOCAL ASSISTANCE

0
1. The authority citation for part 35 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.; 33 U.S.C. 1251 et seq.; 42 
U.S.C. 300f et seq.; 42 U.S.C. 6901 et seq.; 7 U.S.C. 136 et seq.; 
15 U.S.C. 2601 et seq.; 42 U.S.C. 13101 et seq.; Pub. L. 104-134, 
110 Stat. 1321, 1321-299 (1996); Pub. L. 105-65, 111 Stat. 1344, 
1373 (1997), 2 CFR 200.


0
2. Amend Sec.  35.10010 by revising paragraph (c) to read as follows:


Sec.  35.10010   Limitations on assistance.

* * * * *
    (c) Costs incurred, and the value of any integral in-kind 
contributions made, before receipt of credit assistance may be 
considered in calculating eligible project costs only upon approval of 
the Administrator. Such costs and integral in-kind contributions must 
be directly related to the development or execution of the project and 
must be eligible project costs as defined in Sec.  35.10005. In 
addition, such costs, excluding the value of any integral in-kind 
contributions, are payable from the proceeds of the WIFIA credit 
instrument and shall be considered incurred costs for purposes of 
paragraph (f) of this section. Capitalized interest on the WIFIA credit 
instrument is not eligible for calculating eligible project costs.
* * * * *

[FR Doc. 2018-13714 Filed 6-25-18; 8:45 am]
 BILLING CODE 6560-50-P



                                                                 Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Rules and Regulations                                                29691

                                              C. Collection of Information                            1 of DHS Instruction Manual 023–01–                      (4) Vessel operators desiring to enter
                                                This rule will not call for a new                     001–01, Rev. 01. A Record of                           or operate within the safety zone shall
                                              collection of information under the                     Environmental Consideration                            contact the Captain of the Port Buffalo
                                              Paperwork Reduction Act of 1995 (44                     supporting this determination is                       or his on-scene representative to obtain
                                              U.S.C. 3501–3520).                                      available in the docket where indicated                permission to do so. The Captain of the
                                                                                                      under ADDRESSES.                                       Port Buffalo or his on-scene
                                              D. Federalism and Indian Tribal                                                                                representative may be contacted via
                                              Governments                                             G. Protest Activities
                                                                                                                                                             VHF Channel 16. Vessel operators given
                                                 A rule has implications for federalism                 The Coast Guard respects the First                   permission to enter or operate in the
                                              under Executive Order 13132,                            Amendment rights of protesters.                        safety zone must comply with all
                                              Federalism, if it has a substantial direct              Protesters are asked to contact the                    directions given to them by the Captain
                                              effect on the States, on the relationship               person listed in the FOR FURTHER                       of the Port Buffalo, or his on-scene
                                              between the national government and                     INFORMATION CONTACT section to                         representative.
                                              the States, or on the distribution of                   coordinate protest activities so that your
                                                                                                      message can be received without                          Dated: June 20, 2018.
                                              power and responsibilities among the                                                                           Joseph S. Dufresne,
                                              various levels of government. We have                   jeopardizing the safety or security of
                                                                                                      people, places or vessels.                             Captain, U.S. Coast Guard, Captain of the
                                              analyzed this rule under that Order and                                                                        Port Buffalo.
                                              have determined that it is consistent                   List of Subjects in 33 CFR Part 165                    [FR Doc. 2018–13600 Filed 6–25–18; 8:45 am]
                                              with the fundamental federalism
                                                                                                        Harbors, Marine safety, Navigation                   BILLING CODE 9110–04–P
                                              principles and preemption requirements
                                                                                                      (water), Reporting and recordkeeping
                                              described in Executive Order 13132.
                                                 Also, this rule does not have tribal                 requirements, Security measures,
                                              implications under Executive Order                      Waterways.                                             ENVIRONMENTAL PROTECTION
                                              13175, Consultation and Coordination                      For the reasons discussed in the                     AGENCY
                                              with Indian Tribal Governments,                         preamble, the Coast Guard amends 33
                                              because it does not have a substantial                  CFR part 165 as follows:                               40 CFR Part 35
                                              direct effect on one or more Indian                                                                            [EPA–HQ–OW–2016–0569; FRL–9979–90–
                                                                                                      PART 165—REGULATED NAVIGATION
                                              tribes, on the relationship between the                                                                        OW]
                                                                                                      AREAS AND LIMITED ACCESS AREAS
                                              Federal Government and Indian tribes,
                                              or on the distribution of power and                     ■ 1. The authority citation for part 165               Previously-Incurred Costs in the WIFIA
                                              responsibilities between the Federal                    continues to read as follows:                          Program
                                              Government and Indian tribes. If you                                                                           AGENCY:  Environmental Protection
                                                                                                        Authority: 33 U.S.C. 1231; 50 U.S.C. 191;
                                              believe this rule has implications for                  33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;              Agency (EPA).
                                              federalism or Indian tribes, please                     Department of Homeland Security Delegation             ACTION: Interim final rule.
                                              contact the person listed in the FOR                    No. 0170.1.
                                              FURTHER INFORMATION CONTACT section                     ■ 2. Add § 165.T09–0567 to read as                     SUMMARY:    With this interim final rule
                                              above.                                                  follows:                                               Environmental Protection Agency (EPA)
                                              E. Unfunded Mandates Reform Act                                                                                is amending the Water Infrastructure
                                                                                                      § 165.T09–0567 Safety Zone; Bay Village                Finance and Innovation Act (WIFIA)
                                                The Unfunded Mandates Reform Act                      Independence Day Fireworks; Lake Erie,
                                                                                                                                                             regulations to clarify the process for,
                                              of 1995 (2 U.S.C. 1531–1538) requires                   Bay Village, OH.
                                                                                                                                                             and conditions under which, a recipient
                                              Federal agencies to assess the effects of                  (a) Location. This zone will                        of WIFIA credit assistance can include
                                              their discretionary regulatory actions. In              encompass all U.S waterways within a                   costs incurred, and the value of integral
                                              particular, the Act addresses actions                   560 foot radius of the fireworks launch                in-kind contributions made, before
                                              that may result in the expenditure by a                 site located at position 41°29′23.9″ N,                receipt of assistance in the calculation
                                              State, local, or tribal government, in the              081°55′44.5″ W, Bay Village, OH (NAD                   of total eligible costs, and can be
                                              aggregate, or by the private sector of                  83).                                                   reimbursed for certain of those costs by
                                              $100,000,000 (adjusted for inflation) or                   (b) Enforcement period. This
                                                                                                                                                             WIFIA loan proceeds. This interim final
                                              more in any one year. Though this rule                  regulation is effective and will be
                                                                                                                                                             rule pertains to a matter involving a
                                              will not result in such an expenditure,                 enforced on July 4, 2018 from 9:45 p.m.
                                                                                                                                                             federal loan and loan guarantee program
                                              we do discuss the effects of this rule                  until 10:45 p.m.
                                                                                                         (c) Regulations. (1) In accordance with             and is therefore exempt from the
                                              elsewhere in this preamble.
                                                                                                      the general regulations in § 165.23 of                 rulemaking requirements of the
                                              F. Environment                                                                                                 Administrative Procedure Act. As such,
                                                                                                      this part, entry into, transiting, or
                                                We have analyzed this rule under                      anchoring within this safety zone is                   EPA is issuing this rule as interim final.
                                              Department of Homeland Security                         prohibited unless authorized by the                    DATES: This rule is effective on June 26,
                                              Directive 023–01 and Commandant                         Captain of the Port Buffalo or his                     2018. Comments must be received on or
                                              Instruction M16475.1D, which guide the                  designated on-scene representative.                    before August 27, 2018.
                                              Coast Guard in complying with the                          (2) This safety zone is closed to all               ADDRESSES: Submit your comments,
                                              National Environmental Policy Act of                    vessel traffic, except as may be                       identified by Docket ID No. EPA–HQ–
                                              1969 (42 U.S.C. 4321–4370f), and have                   permitted by the Captain of the Port                   OW–2016–0569, at http://
                                              determined that this action is one of a                 Buffalo or his designated on-scene                     www.regulations.gov. Follow the online
sradovich on DSK3GMQ082PROD with RULES




                                              category of actions that do not                         representative.                                        instructions for submitting comments.
                                              individually or cumulatively have a                        (3) The ‘‘on-scene representative’’ of              Once submitted, comments cannot be
                                              significant effect on the human                         the Captain of the Port Buffalo is any                 edited or removed from Regulations.gov.
                                              environment. This rule establishes a                    Coast Guard commissioned, warrant or                   The EPA may publish any comment
                                              temporary safety zone. It is categorically              petty officer who has been designated                  received to its public docket. Do not
                                              excluded from further review under                      by the Captain of the Port Buffalo to act              submit electronically any information
                                              paragraph L60(a) of Appendix A, Table                   on his behalf.                                         you consider to be Confidential


                                         VerDate Sep<11>2014   16:05 Jun 25, 2018   Jkt 244001   PO 00000   Frm 00027   Fmt 4700   Sfmt 4700   E:\FR\FM\26JNR1.SGM   26JNR1


                                              29692              Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Rules and Regulations

                                              Business Information (CBI) or other                        Tips for preparing your comments.                   or not incurred prior to the receipt of
                                              information whose disclosure is                         When submitting comments, remember                     assistance, except for the value of in-
                                              restricted by statute. Multimedia                       to:                                                    kind contributions which do not
                                              submissions (audio, video, etc.) must be                   • Identify the document by docket ID                represent out-of-pocket costs to a
                                              accompanied by a written comment.                       number and other identifying                           borrower and are not costs for which a
                                              The written comment is considered the                   information (subject heading, Federal                  borrower would typically seek
                                              official comment and should include                     Register date and page number).                        reimbursement or payment.
                                              discussion of all points you wish to                       • Explain why you agree or disagree;                   For these reasons, EPA is clarifying
                                              make. The EPA will generally not                        suggest alternatives and substitute                    current regulations by adding to 40 CFR
                                              consider comments or comment                            language for your requested changes.                   35.10010(c) the clause ‘‘value of any
                                              contents located outside of the primary                    • Describe any assumptions and                      integral in-kind contributions made’’ to
                                              submission (i.e., on the web, cloud, or                 provide any technical information and/                 allow these costs to be included in the
                                              other file sharing system). For                         or data that you used.                                 calculation of eligible project costs and
                                              additional submission methods, the full                    • If you estimate potential costs or                by changing ‘‘prior to a project sponsor’s
                                              EPA public comment policy,                              burdens, explain how you arrived at                    submission of an application for credit
                                              information about CBI or multimedia                     your estimate in sufficient detail to                  assistance’’ to ‘‘before receipt of credit
                                              submissions, and general guidance on                    allow for it to be reproduced.                         assistance’’ to ensure that all such costs
                                              making effective comments, please visit                    • Provide specific examples to                      and integral in-kind contributions are
                                              https://www.epa.gov/dockets/                            illustrate your concerns and suggest                   included. EPA is also adding the clause,
                                              commenting-epa-dockets.                                 alternatives.                                          ‘‘such costs, excluding the value of any
                                              FOR FURTHER INFORMATION CONTACT:                           • Explain your views as clearly as                  integral in-kind contributions, are
                                              Jordan Dorfman, Water Infrastructure                    possible.                                              payable from the proceeds of the WIFIA
                                              Division, Office of Wastewater                             • Make sure to submit your                          credit instrument’’ to ensure that such
                                              Management, Mail Code 4201C,                            comments by the comment period                         costs may be reimbursed from WIFIA
                                              Environmental Protection Agency, 1200                   deadline identified.                                   loan proceeds.
                                              Pennsylvania Avenue NW, Washington,                     II. Background                                            Crediting prior costs and the value of
                                              DC, 20460; telephone number: (202)                                                                             integral in-kind contributions to the
                                              564–0614; email address:                                A. What action is the Agency taking?                   project increases the size of the project
                                              dorfman.jordan@epa.gov.                                   Section 5008(c)(2) of the Water                      and, by extension, may increase the size
                                              SUPPLEMENTARY INFORMATION:                              Infrastructure Improvements for the                    of the WIFIA loan. For example, if a
                                                                                                      Nation Act, Public Law 114–322, added                  borrower has incurred $110 million in
                                              I. General Information
                                                                                                      section 5029(b)(10) (33 U.S.C.                         costs prior to the receipt of assistance,
                                              A. Does this action apply to me?                        3908(b)(10)) to the WIFIA authorizing                  and anticipates incurring $90 million in
                                                This action only applies to entities                  legislation. This section requires that                costs after receipt of assistance, the size
                                              seeking credit assistance under the                     any eligible project costs incurred, and               of the project would be $200 million.
                                              WIFIA program for the development                       the value of any integral in-kind                      Looking at 33 U.S.C. 3908(b)(2)(A) in
                                              and construction of a water                             contributions made, before receipt of                  isolation, EPA could potentially fund up
                                              infrastructure project. EPA has                         assistance be credited toward the 51                   to 49 percent of that $200 million, or
                                              promulgated regulations to implement                    percent of project costs to be provided                $98 million. However, by further
                                              this program. A list of eligible entities               by sources of funding other than a                     directing that the costs incurred and
                                              and eligible projects can be found at 33                WIFIA loan. 33 U.S.C. 3908(b)(10). This                contributions made prior to receipt of
                                              U.S.C. 3904 and 3905 and the Interim                    section provides WIFIA borrowers the                   assistance be credited toward the 51
                                              Final Rule at 40 CFR 35.10005.                          opportunity to include costs incurred                  percent of project costs to be provided
                                                                                                      prior to receipt of assistance and the                 by sources of funding other than WIFIA,
                                              B. What should I consider as I prepare                  value of integral in-kind contributions                3908(b)(10) serves to limit the size of the
                                              my comments for EPA?                                    made before receipt of assistance, in the              loan if the borrower has completed a
                                                 Submitting Confidential Business                     calculation of total eligible costs in                 substantial portion of the overall
                                              Information (CBI). Do not submit this                   order to calculate the size of the loan.               project. In this example project, the size
                                              information to EPA through                              However, it does not address what costs                of the loan would be limited to $90
                                              regulations.gov or email. Clearly mark                  can be reimbursed. The size of the                     million because the $110 million of
                                              the part or all of the information that                 project is important in determining the                costs incurred prior to receipt of
                                              you claim to be CBI. For CBI                            amount of funding that may be awarded                  assistance must be credited to the 51
                                              information on a disk, CD–ROM, or                       to the WIFIA borrower (‘‘size of the                   percent category of costs to be provided
                                              flash drive that you mail to EPA, mark                  loan’’) because the statute, at 33 U.S.C.              by non-WIFIA sources of funding,
                                              the outside of the disk, CD–ROM, or                     3908(b)(2)(A), limits the size of the loan             leaving only $90 million to be funded
                                              flash drive as CBI and then identify                    to 49 percent of the total reasonably                  by WIFIA.
                                              electronically within the disk, CD–                     anticipated eligible costs for the project.               Costs and in-kind contributions must
                                              ROM, or flash drive the specific                        Instead of addressing the reimbursement                be directly related to the development
                                              information that is claimed as CBI. In                  of costs, 33 U.S.C. 3908(b)(10) uses the               or execution of the project including, for
                                              addition to one complete version of the                 term ‘‘credited’’ and directs that certain             example, preliminary design, right-of-
                                              comment that includes information                       costs be credited toward a category of                 way acquisition, National
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                                              claimed as CBI, a copy of the comment                   costs, the 51 percent to be provided by                Environmental Policy Act (NEPA)
                                              that does not contain the information                   a non-WIFIA source. Importantly, the                   compliance related costs, and
                                              claimed as CBI must be submitted for                    statute does not prohibit the use of a                 construction related costs. The WIFIA
                                              inclusion in the public docket.                         WIFIA loan to reimburse eligible costs                 program retains the right to ask for
                                              Information so marked will not be                       incurred prior to receipt of assistance.               appropriate documentation as evidence
                                              disclosed except in accordance with                     The WIFIA loan can therefore be used                   of such costs and in-kind contributions
                                              procedures set forth in 40 CFR part 2.                  to reimburse any eligible cost, whether                for sizing of the WIFIA loan and, in the


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                                                                 Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Rules and Regulations                                           29693

                                              case of incurred costs, for                             under the RFA. In making this                          H. Executive Order 13045: Protection of
                                              reimbursement.                                          determination, the impact of concern is                Children From Environmental Health
                                                 In addition, 40 CFR 35.10010(c) is                   any significant adverse economic                       Risks and Safety Risks
                                              amended by removing ‘‘[i]n addition,                    impact on small entities. An agency may
                                              applicants shall not include application                certify that a rule will not have a                      This action is not subject to Executive
                                              charges or any other expenses                           significant economic impact on a                       Order 13045 because it is not
                                              associated with the application process                 substantial number of small entities if                economically significant as defined in
                                              (such as charges associated with                        the rule relieves regulatory burden, has               Executive Order 12866, and because
                                              obtaining the required preliminary                                                                             environmental health or safety risks are
                                                                                                      no net burden or otherwise has a
                                              rating opinion letter) among the eligible                                                                      not addressed by this action.
                                                                                                      positive economic effect on the small
                                              project costs.’’ This sentence is
                                              redundant because 40 CFR 35.10005                       entities subject to the rule. With this                I. Executive Order 13211: Actions
                                              provides a definition of eligible project               interim final rule, the EPA is amending                Concerning Regulations That
                                              costs from which the determination of                   the WIFIA regulations to clarify the                   Significantly Affect Energy Supply,
                                              eligibility of a cost can be determined.                process for, and conditions under                      Distribution, or Use
                                              It causes confusion because it implies                  which, a recipient of WIFIA credit
                                                                                                      assistance can include costs incurred,                    This action is not a ‘‘significant
                                              that fees charged by the WIFIA program
                                                                                                      and the value of integral in-kind                      energy action’’ because it is not likely to
                                              cannot be included as an eligible project
                                                                                                      contributions made, before receipt of                  have a significant adverse effect on the
                                              cost even though they are specifically
                                              allowed to be financed as part of a                     assistance in the calculation of total                 supply, distribution or use of energy.
                                              WIFIA loan by statute at 33 U.S.C.                      eligible costs, and can be reimbursed for              This rulemaking simply establishes the
                                              3908(b)(7)(B). Furthermore, EPA has                     certain of those costs by WIFIA loan                   process for, and conditions under
                                              determined that the cost of obtaining                                                                          which, a recipient of WIFIA credit
                                                                                                      proceeds. This interim final rule does
                                              rating opinion letters is eligible under                                                                       assistance can include costs incurred,
                                                                                                      not impose costs on small entities
                                              33 U.S.C. 3906(4) which states that                                                                            and the value of integral in-kind
                                                                                                      applying for a WIFIA loan. I have
                                              ‘‘capitalized interest necessary to meet                                                                       contributions made, before receipt of
                                                                                                      therefore concluded that this action will
                                              market requirements, reasonably                                                                                assistance in the calculation of total
                                                                                                      have no net regulatory burden for all
                                              required reserve funds, capital issuance                                                                       eligible costs, and can be reimbursed for
                                                                                                      directly regulated small entities.                     certain of those costs by WIFIA loan
                                              expenses, and other carrying costs
                                              during construction’’ are eligible costs.               E. Unfunded Mandates Reform Act                        proceeds.
                                                                                                      (UMRA)                                                 J. National Technology Transfer and
                                              B. What is the Agency’s authority for
                                              taking this action?                                       This action does not contain an                      Advancement Act (NTTAA)
                                                This interim final rule is issued under               unfunded mandate of $100 million or                      This rulemaking does not involve
                                              the authority of 33 U.S.C. 3908(b)(10)                  more as described in UMRA, 2 U.S.C.                    technical standards.
                                              and 3911.                                               1531–1538, and does not significantly or
                                                                                                      uniquely affect small governments. The                 K. Executive Order 12898: Federal
                                              III. Statutory and Executive Orders
                                                                                                      action imposes no enforceable duty on                  Actions To Address Environmental
                                              Reviews
                                                                                                      any state, local, or tribal governments or             Justice in Minority Populations and
                                              A. Executive Order 12866: Regulatory                    the private sector.                                    Low-Income Populations
                                              Planning and Review and Executive
                                              Order 13563: Improving Regulation and                   F. Executive Order 13132: Federalism                     This action is not subject to Executive
                                              Regulatory Review                                                                                              Order 12898 (59 FR 7629, February 16,
                                                                                                        This action does not have federalism                 1994) because it does not establish an
                                                This action is not a significant                      implications. It will not have substantial             environmental health or safety standard.
                                              regulatory action.                                      direct effects on the states, on the
                                              B. Executive Order 13771                                relationship between the national                      L. National Environmental Policy Act
                                                                                                      government and the states, or on the                      Each project obtaining assistance
                                                This rule is not an E.O. 13771
                                              regulatory action because this rule is not              distribution of power and                              under this program is required to adhere
                                              significant under E.O. 12866.                           responsibilities among the various                     to the National Environmental Policy
                                                                                                      levels of government.                                  Act of 1969, as amended (42 U.S.C.
                                              C. Paperwork Reduction Act
                                                                                                      G. Executive Order 13175: Consultation                 4321–4370). This rulemaking simply
                                                This action does not impose an                                                                               establishes the process for, and
                                                                                                      and Coordination With Indian Tribal
                                              information collection burden under the                                                                        conditions under which, a recipient of
                                                                                                      Governments
                                              PRA because this rule merely                                                                                   WIFIA credit assistance can include
                                              establishes the process for, and                           This action does not have tribal                    costs incurred, and the value of integral
                                              conditions under which, a recipient of                  implications as specified in Executive                 in-kind contributions made, before
                                              WIFIA credit assistance can include                     Order 13175. While a tribal government,                receipt of assistance in the calculation
                                              costs incurred, and the value of integral               or a consortium of tribal governments                  of total eligible costs, and can be
                                              in-kind contributions made, before                      may apply for WIFIA credit assistance,                 reimbursed for certain of those costs by
                                              receipt of assistance in the calculation                this action does not have substantial                  WIFIA loan proceeds; therefore, by
                                              of total eligible costs, and can be
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                                                                                                      direct effects on one or more Indian                   itself, this rulemaking will not have any
                                              reimbursed for certain of those costs by
                                                                                                      tribes, on the relationship between the                effect on the quality of the environment.
                                              WIFIA loan proceeds.
                                                                                                      Federal Government and Indian tribes,
                                              D. Regulatory Flexibility Act                                                                                  List of Subjects in 40 CFR Part 35
                                                                                                      or on the distribution of power and
                                                 I certify that this action will not have             responsibilities between the Federal                     Environmental protection, Reporting
                                              a significant economic impact on a                      Government and Indian tribes.                          and recordkeeping requirements, and
                                              substantial number of small entities                                                                           Water finance.


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                                              29694                Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Rules and Regulations

                                                Dated: June 18, 2018.                                   Montana’s October 14, 2016 submittal                   III. Final Action
                                              E. Scott Pruitt,                                          revises their prevention of significant                   We are taking final action to approve
                                              Administrator.                                            deterioration (PSD) regulations. This                  changes to Montana’s SIP—in particular
                                                For the reasons set forth in the                        action is being taken under section 110                the revisions to ARM 17.8.818(7)(a)(iii),
                                              preamble, 40 CFR part 35 is amended as                    of the Clean Air Act (CAA) (Act).                      which removes the phrase ‘‘averaged
                                              follows:                                                  DATES: This final rule is effective on July            over a 24-hour period’’—as submitted
                                                                                                        26, 2018.                                              on October 14, 2016. We are taking final
                                              PART 35—STATE AND LOCAL                                   ADDRESSES: The EPA has established a                   action to approve this change, as it is
                                              ASSISTANCE                                                docket for this action under Docket ID                 consistent with the CAA and the EPA
                                                                                                        No. EPA–R08–OAR–2018–0136. All                         regulations as follows:
                                              ■ 1. The authority citation for part 35                                                                             1. CAA section 110(a)(2)(C), which
                                              continues to read as follows:                             documents in the docket are listed on
                                                                                                        the http://www.regulations.gov website.                requires each state plan to include ‘‘a
                                                Authority: 42 U.S.C. 7401 et seq.; 33 U.S.C.            Although listed in the index, some                     program to provide for . . . the
                                              1251 et seq.; 42 U.S.C. 300f et seq.; 42 U.S.C.                                                                  regulation of the modification and
                                              6901 et seq.; 7 U.S.C. 136 et seq.; 15 U.S.C.
                                                                                                        information is not publicly available,
                                                                                                        e.g., confidential business information                construction of any stationary source
                                              2601 et seq.; 42 U.S.C. 13101 et seq.; Pub. L.
                                              104–134, 110 Stat. 1321, 1321–299 (1996);                 (CBI) or other information whose                       within the areas covered by the plan as
                                              Pub. L. 105–65, 111 Stat. 1344, 1373 (1997),              disclosure is restricted by statute.                   necessary to assure that [the NAAQS]
                                              2 CFR 200.                                                Certain other material, such as                        are achieved, including a permit
                                                                                                        copyrighted material, is not placed on                 program as required in parts C and D of
                                              ■ 2. Amend § 35.10010 by revising                                                                                this subchapter’’;
                                              paragraph (c) to read as follows:                         the internet and will be publicly
                                                                                                        available only in hard copy form.                         2. CAA section 110(a)(2)(A), requires
                                              § 35.10010       Limitations on assistance.               Publicly available docket materials are                that SIPs contain enforceable emissions
                                              *     *     *     *     *                                 available electronically through http://               limitations and other control measures.
                                                (c) Costs incurred, and the value of                    www.regulations.gov, or please contact                 Under section CAA section 110(a)(2),
                                              any integral in-kind contributions made,                  the person identified in the FOR FURTHER               the enforceability requirement in
                                              before receipt of credit assistance may                   INFORMATION CONTACT section for                        section 110(a)(2)(A) applies to all plans
                                              be considered in calculating eligible                     additional information.                                submitted by a state. Montana’s
                                              project costs only upon approval of the                                                                          regulations in ARM 17.8 create
                                                                                                        FOR FURTHER INFORMATION CONTACT:
                                              Administrator. Such costs and integral                                                                           enforceable obligations for sources;
                                                                                                        Kevin Leone, Air Program, U.S.
                                              in-kind contributions must be directly                                                                              3. CAA section 110(i) (with certain
                                                                                                        Environmental Protection Agency
                                              related to the development or execution                                                                          limited exceptions) prohibits states from
                                                                                                        (EPA), Region 8, Mailcode 8P–AR, 1595
                                              of the project and must be eligible                                                                              modifying SIP requirements for
                                                                                                        Wynkoop Street, Denver, Colorado
                                              project costs as defined in § 35.10005. In                                                                       stationary sources except through the
                                                                                                        80202–1129, (303) 312–6227,
                                              addition, such costs, excluding the                                                                              SIP revision process. As described in
                                                                                                        leone.kevin@epa.gov.
                                              value of any integral in-kind                                                                                    our proposed rulemaking, Montana
                                                                                                        SUPPLEMENTARY INFORMATION:                             fulfilled this requirement;
                                              contributions, are payable from the
                                              proceeds of the WIFIA credit instrument                   I. What is the EPA taking final action                    4. CAA section 110(l), provides that
                                              and shall be considered incurred costs                    to approve?                                            the EPA cannot approve a SIP revision
                                              for purposes of paragraph (f) of this                                                                            that interferes with any applicable
                                                                                                           The EPA is taking final action to                   requirement of the Act. The revisions to
                                              section. Capitalized interest on the
                                                                                                        approve a revision to Montana’s PSD                    ARM 17.8.818 would not interfere with
                                              WIFIA credit instrument is not eligible
                                                                                                        regulations as submitted by the State of               sections 110(a)(2) and 110(i) of the Act,
                                              for calculating eligible project costs.
                                                                                                        Montana on October 14, 2016. We are                    as they are in compliance with current
                                              *     *     *     *     *                                 taking final action to approve the                     federal regulations;
                                              [FR Doc. 2018–13714 Filed 6–25–18; 8:45 am]               following revision to Administrative                      5. CAA section 161, which requires a
                                              BILLING CODE 6560–50–P                                    Rules of Montana (ARM)                                 SIP to contain emission limitations to
                                                                                                        17.8.818(7)(a)(iii): Removing the phrase               prevent significant deterioration of air
                                                                                                        ‘‘averaged over a 24-hour period.’’                    quality in regions designated as
                                              ENVIRONMENTAL PROTECTION                                     We provided a detailed background in                attainment or unclassifiable; and
                                              AGENCY                                                    our proposed rulemaking, published on                     6. Montana’s SIP revision complies
                                                                                                        April 27, 2018. See 83 FR 18494. We                    with the requirements of 40 CFR 51.166
                                              40 CFR Part 52                                            invited comment on all aspects of our                  as the plan imposes the regulatory
                                              [EPA–R08–OAR–2018–0136; FRL–9979–                         proposal and provided a 30-day                         requirements on individual sources, as
                                              76—Region 8]                                              comment period. The comment period                     required by the regulatory provisions.
                                                                                                        ended on May 29, 2018.
                                              Approval and Promulgation of Air                             In this action, we are responding to                IV. Incorporation by Reference
                                              Quality Implementation Plans; State of                    the comments we received and taking                       In this action, the EPA is taking final
                                              Montana; Revisions to PSD Permitting                      final rulemaking action on the State’s                 action to include in a final EPA rule
                                              Rules                                                     October 14, 2016 submittal.                            regulatory text that includes
                                              AGENCY:  Environmental Protection                                                                                incorporation by reference. In
                                                                                                        II. Response to Comments
                                              Agency (EPA).                                                                                                    accordance with requirements of 1 CFR
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                                              ACTION: Final rule.                                         We received two comments during                      51.5, the EPA is taking final action to
                                                                                                        the public comment period. After                       incorporate by reference a change to the
                                              SUMMARY:   The Environmental Protection                   reviewing the comments, the EPA has                    State of Montana’s SIP removing
                                              Agency (EPA) is taking final action to                    determined that the comments are                       ‘‘averaged over a 24-hour period’’ from
                                              fully approve the State Implementation                    outside the scope of our proposed action               ARM 17.8.818(7)(a)(iii). The EPA has
                                              Plan (SIP) revision submitted by the                      or fail to identify any material issue                 made, and will continue to make, these
                                              State of Montana on October 14, 2016.                     necessitating a response.                              materials generally available through


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Document Created: 2018-06-26 00:51:20
Document Modified: 2018-06-26 00:51:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule.
DatesThis rule is effective on June 26, 2018. Comments must be received on or before August 27, 2018.
ContactJordan Dorfman, Water Infrastructure Division, Office of Wastewater Management, Mail Code 4201C, Environmental Protection Agency, 1200 Pennsylvania Avenue NW,
FR Citation83 FR 29691 
CFR AssociatedEnvironmental Protection; Reporting and Recordkeeping Requirements and Water Finance

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