[Federal Register Volume 67, Number 68 (Tuesday, April 9, 2002)]
[Rules and Regulations]
[Pages 17258-17261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8431]


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

AIR TRANSPORTATION STABILIZATION BOARD

14 CFR Part 1310


Administrative Regulations for Air Transportation Stabilization 
Board Under Section 101(a)(1) of the Air Transportation Safety and 
System Stabilization Act

AGENCY: Air Transportation Stabilization Board.

ACTION: Final rule.

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

SUMMARY: These regulations are issued by the Air Transportation 
Stabilization Board under section 102(c)(2)(B) of the Air 
Transportation Safety and System Stabilization Act, which authorizes 
the Air Transportation Stabilization Board to issue supplemental 
regulations for the issuance of federal credit instruments. The purpose 
of these regulations is to provide the Board with administrative rules 
and procedures necessary to conduct Board business related to 
administering the air carrier guarantee loan program. These regulations 
are effective upon publication.

EFFECTIVE DATE: April 9, 2002.

FOR FURTHER INFORMATION CONTACT: Joseph P. Adams, Jr., Executive 
Director, Air Transportation Stabilization Board, 1120 Vermont Avenue, 
NW., Suite 970, Washington, DC 20005, at (202) 775-8030 or by e-mail to 
[email protected].

SUPPLEMENTARY INFORMATION: In response to terrorist attacks on 
September 11, 2001, the Federal Aviation Administration issued a 
Federal ground stop order that prohibited all flights to, from, and 
within the United States. Airports did not reopen until September 13 
(except for Reagan National Airport, which partially reopened on 
October 4, 2001). At the same time, consumer demand for passenger air 
services declined significantly after the terrorist attacks. As a 
result, the U.S. commercial aviation industry suffered severe losses 
that have placed the financial survival of many air carriers at risk, 
in part because these carriers do not have adequate access to credit 
markets.
    To address the viability of the U.S. commercial aviation system, 
Congress passed, and President Bush signed into law, the Air 
Transportation Safety and System Stabilization Act (Pub. L. 107-42) 
(the Act). In Section 102(b), the Act establishes the Air 
Transportation Stabilization Board (the ``Board'') to enter into 
agreements to issue loan guarantees and other Federal credit 
instruments as authorized. The Board is composed of the Chairman of the 
Board

[[Page 17259]]

of Governors of the Federal Reserve System or the designee of the 
Chairman (who is Chairman of the Board), the Secretary of 
Transportation or the designee of the Secretary, the Secretary of the 
Treasury or the designee of the Secretary, and the Comptroller General 
or the designee of the Comptroller General (who is a nonvoting member). 
The Board met on September 24, 2001 to discuss the administration of 
the loan guarantee program.
    On October 12, 2001, the Office of Management and Budget (``OMB'') 
published regulations in the Federal Register (14 CFR Part 1300) 
regarding application procedures and minimum requirements (66 FR 
52270). The Board has determined that it is appropriate to issue 
supplemental administrative rules and procedures to facilitate the 
conduct of Board business. These rules and procedures reflect the fact 
that the Department of the Treasury will provide extensive 
administrative services to the Board. The President, acting pursuant to 
the 2001 Emergency Supplemental Appropriations Act for Recovery from 
and Response to Terrorist Attacks on the United States (Pub. L. 107-
38), transferred funds to the Departmental Offices, Department of the 
Treasury, so that the Departmental Offices is able to provide the 
necessary resources for staff, facilities, equipment, and other support 
for the Board to administer the guaranteed loan program for the airline 
industry. Accordingly, the Board has determined that the administrative 
operations of the Board will be conducted in accordance with the 
applicable administrative authorities of the Department of the 
Treasury; and that the relevant administrative regulations of the 
Department of the Treasury will be followed by, and applied by, the 
Board.
    The Board concludes that it may publish these rules without first 
obtaining public comment and without a delayed effective date. Section 
553(a) of the Administrative Procedure Act exempts from its rulemaking 
requirements those agency actions that concern ``loans, grants, 
benefits, or contracts.'' 5 U.S.C. 553(a). Since the Board's 
administrative rules and procedures concern the loan guarantee program, 
this issuance falls within this exception to the requirements otherwise 
imposed by section 553.
    Moreover, to the extent that section 553's notice-and-comment 
requirements may apply to this action, we conclude that there is ``good 
cause'' under sections 553(b)(B) and 553(d) to issue the rule without 
prior public comment, effective immediately. These regulations respond 
to an emergency economic condition that makes compliance with prior 
notice requirements impracticable and contrary to the public interest. 
In requiring OMB to issue application regulations within 14 days of 
passage of the Act, Congress plainly intended to ensure that the loan 
guarantee program be implemented as swiftly as possible. Moreover, 
OMB's regulations permit the filing of an application immediately. The 
public interest is therefore served by having these regulations become 
effective upon publication, so that the Board can begin operations, and 
air carriers can submit applications to the Board at their earliest 
convenience.
    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. It has also been determined that this rule is not a 
significant regulatory action for purposes of Executive Order 12866.

List of Subjects in Part 1310

    Air carriers, Disaster assistance, Loan programs--transportation, 
Reporting and recordkeeping requirements.

    Dated: April 1, 2002.
Joseph P. Adams, Jr.,
Executive Director, Air Transportation Stabilization Board.

    For the reasons set forth in the preamble and under the authority 
of 49 U.S.C. 40101 note, the Air Transportation Stabilization Board 
amends 14 CFR chapter VI as follows:

    1. A new subchapter B, consisting of part 1310, is added to chapter 
VI to read as follows:

Subchapter B--Air Transportation Stabilization Board

PART 1310--AIR CARRIER GUARANTEE LOAN PROGRAM ADMINISTRATIVE 
REGULATIONS

Sec.
1310.1   Purpose and scope.
1310.2   Composition of the Board.
1310.3   Authority of the Board.
1310.4   Offices.
1310.5   Meetings and actions of the Board.
1310.6   Staff.
1310.7   Communications with the Board.
1310.8   Freedom of Information Act.
1310.9   Restrictions on lobbying.
1310.10   Government-wide debarment and suspension.
1310.11   Regulations of the Office of Management and Budget.
1310.20   Amendments.

    Authority: Title I of Pub. L. 107-42, 115 Stat. 230 (49 U.S.C. 
40101 note).


Sec. 1310.1  Purpose and scope.

    This part is issued by the Air Transportation Stabilization Board 
pursuant to Section 102(c)(2)(B) of the Air Transportation Safety and 
System Stabilization Act, Public Law 107-42, 115 Stat. 230 (Act). This 
part describes the Board's authorities, organizational structure, the 
rules by which the Board takes actions, and procedures for public 
access to Board records.


Sec. 1310.2  Composition of the Board.

    The Board consists of the Chairman of the Board of Governors of the 
Federal Reserve System or the designee of the Chairman, who acts as 
Chairman of the Board, the Secretary of the Treasury or the designee of 
the Secretary, the Secretary of Transportation or the designee of the 
Secretary, and the Comptroller General of the United States or the 
designee of the Comptroller General, who serves as a nonvoting member. 
The Comptroller General of the United States or the designee of the 
Comptroller General, who serves as a nonvoting member, shall not be 
involved in any of the Board's discussions or deliberations in 
connection with individual loan guarantee applications.


Sec. 1310.3  Authority of the Board.

    Pursuant to the provisions of the Act, the Board is authorized to 
guarantee loans provided to airlines by eligible lenders in accordance 
with the procedures, rules, and regulations established by the Board, 
to make the determinations authorized by the Act, and to take such 
other actions as necessary to carry out its functions specified in the 
Act.


Sec. 1310.4  Offices.

    The principal offices of the Board are at 1120 Vermont Avenue, 
N.W., Suite 970, Washington, D.C. 20005.


Sec. 1310.5  Meetings and actions of the Board.

    (a) Place and frequency. The Board meets, on the call of the 
Chairman, in order to consider matters requiring action by the Board. 
The time and place for any such meeting shall be determined by the 
members of the Board.
    (b) Quorum and voting. Two voting members of the Board constitute a 
quorum for the transaction of business. All decisions and 
determinations of the Board shall be made by a majority vote of the 
voting members. All votes on determinations of the Board required by 
the Act shall be recorded in the minutes. A Board member may request 
that any vote be recorded according to individual Board members.
    (c) Agenda of meetings. As a general rule, an agenda for each 
meeting shall be distributed to members of the Board at least 48 hours 
in advance of the date

[[Page 17260]]

of the meeting, together with copies of materials relevant to the 
agenda items.
    (d) Minutes. The Chief Administrative Officer shall keep minutes of 
each Board meeting and of action taken without a meeting, a draft of 
which is to be distributed to each member of the Board as soon as 
practicable after each meeting or action. To the extent practicable, 
the minutes of a Board meeting shall be corrected and approved at the 
next meeting of the Board.
    (e) Use of conference call communications equipment. Any member may 
participate in a meeting of the Board through the use of conference 
call, telephone or similar communications equipment, by means of which 
all persons participating in the meeting can simultaneously speak to 
and hear each other. Any member so participating in a meeting shall be 
deemed present for all purposes, except that the Comptroller General of 
the United States or the designee of the Comptroller General, who 
serves as a nonvoting member, shall not participate in any of the 
Board's discussions or deliberations in connection with individual loan 
guarantee applications. Actions taken by the Board at meetings 
conducted through the use of such equipment, including the votes of 
each member, shall be recorded in the usual manner in the minutes of 
the meetings of the Board.
    (f) Actions between meetings. When, in the judgment of the 
Chairman, it is desirable for the Board to consider action without 
holding a meeting, the relevant information and recommendations for 
action may be transmitted to the members by the Chief Administrative 
Officer and the voting members may communicate their votes to the 
Chairman in writing (including an action signed in counterpart by each 
Board member), electronically, or orally (including telephone 
communication). Any action taken under this paragraph has the same 
effect as an action taken at a meeting. Any such action shall be 
recorded in the minutes. If a voting member believes the matter should 
be considered at a meeting, the member may so notify the Chief 
Administrative Officer and the matter will be scheduled for 
consideration at a meeting.
    (g) Delegations of authority. The Board may delegate authority, 
subject to such terms and conditions as the Board deems appropriate, to 
the Executive Director, the Legal Counsel, or the Chief Administrative 
Officer, to take certain actions not required by the Act to be taken by 
the Board. All delegations shall be made pursuant to resolutions of the 
Board and recorded in writing, whether in the minutes of a meeting or 
otherwise. Any action taken pursuant to delegated authority has the 
effect of an action taken by the Board.


Sec. 1310.6  Staff.

    (a) Executive Director. The Executive Director advises and assists 
the Board in carrying out its responsibilities under the Act, provides 
general direction with respect to the administration of the Board's 
actions, directs the activities of the staff, and performs such other 
duties as the Board may require.
    (b) Legal Counsel. The Legal Counsel provides legal advice relating 
to the responsibilities of the Board and performs such other duties as 
the Executive Director may require.
    (c) Chief Administrative Officer. The Chief Administrative Officer 
sends notice of all meetings, prepares minutes of all meetings, 
maintains a complete record of all votes and actions taken by the 
Board, has custody of all records of the Board and performs such other 
duties as the Executive Director may require.


Sec. 1310.7  Communications with the Board.

    Communications with the Board shall be conducted through the staff 
of the Board.


Sec. 1310.8  Freedom of Information Act.

    While the Board is not part of the Department of the Treasury, the 
Board follows the regulations promulgated by the Department of the 
Treasury at subpart A (``Freedom of Information Act'') of part 1 
(``Disclosure of Records'') of title 31 (``Money and Finance: 
Treasury'') of the Code of Federal Regulations (CFR). The procedures of 
31 CFR 1.1 through 1.7 shall be followed for requesting access to 
records maintained by the Board, and processing such requests. Any 
reference in 31 CFR 1.1 through 1.7 to the ``Department of the 
Treasury,'' the ``Department'' or to a ``bureau,'' shall be construed 
to refer to the Board. In the event that the regulations at subpart A 
of part 1 of title 31 of the CFR subsequently are amended by the 
Department of the Treasury, the Board will follow those amended 
regulations. The following additional information is provided to 
implement 31 CFR 1.1 through 1.7 with respect to the Board.
    (a) Public reading room. The public reading room for the Board is 
the Treasury Department Library. The Library is located in the Main 
Treasury Building, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. 
For building security purposes, visitors are required to make an 
appointment by calling 202-622-0990.
    (b) Requests for records. Initial determinations under 31 CFR 
1.5(h) as to whether to grant requests for records of the Board will be 
made by the Chief Administrative Officer or the designate of such 
official. Requests for records should be addressed to: Freedom of 
Information Request, Air Transportation Stabilization Board, Assistant 
Director, Disclosure Services, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220.
    (c) Administrative appeal of initial determination to deny records. 
(1) Appellate determinations under 31 CFR 1.5(i) with respect to 
records of the Board will be made by the Executive Director, or the 
delegate of such official.
    (2) Appellate determinations with respect to requests for expedited 
processing shall be made by the Executive Director or the delegate of 
such official.
    (3) Appeals should be addressed to: Freedom of Information Appeal, 
Air Transportation Stabilization Board, Assistant Director, Disclosure 
Services, Department of the Treasury, 1500 Pennsylvania Avenue, NW., 
Washington, DC 20220.
    (d) Delivery of process. Service of process will be received by the 
Legal Counsel of the Board or the delegate of such official and shall 
be delivered to the following location: Legal Counsel, Air 
Transportation Stabilization Board, 1120 Vermont Avenue, NW., Suite 
970, Washington, DC 20005.


Sec. 1310.9  Restrictions on lobbying.

    (a) While the Board is not part of the Department of the Treasury, 
the regulations promulgated by the Department of the Treasury at part 
21 (``New Restrictions on Lobbying'') of title 31 (``Money and Finance: 
Treasury'') of the Code of Federal Regulations (CFR), including the 
appendices thereto, are applicable in connection with any of the 
following covered Federal actions: the awarding of any Federal 
contract, the making of any Federal grant, the making of any Federal 
loan, the entering into of any cooperative agreement, and the 
extension, continuation, renewal, amendment, or modification of any 
Federal contract, grant, loan, or cooperative agreement. The 
regulations promulgated by the Department of the Treasury at 31 CFR 
part 21 also are applicable to a request for, or receipt of, any 
Federal contract, grant, loan or cooperative agreement; and to a 
request for, or receipt of, a commitment providing for the United 
States to insure or guarantee a loan. These terms are defined in 31 CFR 
21.105.

[[Page 17261]]

    (b) In the event that the regulations at part 21 of title 31 of the 
CFR subsequently are amended by the Department of the Treasury, the 
Board will follow those amended regulations.


Sec. 1310.10  Governmentwide debarment and suspension.

    While the Board is not part of the Department of the Treasury, the 
regulations promulgated by the Department of the Treasury at subpart A 
(``General''), subpart B (``Effect of Action''), subpart C 
(``Debarment''), subpart D (``Suspension''), and subpart E 
(``Responsibilities of GSA, Agency and Participants'') of part 19 
(``Governmentwide Debarment and Suspension (Nonprocurement) and 
Governmentwide Requirements For Drug-Free Workplace (Grants)'') of 
title 31 (``Money and Finance: Treasury'') of the Code of Federal 
Regulations (CFR) are applicable to the Board. Any reference in 31 CFR 
part 19 to the ``Department of the Treasury'' or the ``Department'' 
shall be construed to refer to the Board. In the event that the 
regulations at subpart A, B, C, D or E of part 19 of title 31 of the 
CFR subsequently are amended by the Department of the Treasury, the 
Board will follow those amended regulations.


Sec. 1310.11  Regulations of the Office of Management and Budget.

    (a) The regulations in this part supplement the regulations of the 
Office of Management and Budget in part 1300 of this chapter in 
accordance with section 102(c)(2)(B) of the Act.
    (b) This part and part 1300 of this chapter jointly govern the 
application procedures and the requirements for issuance of Federal 
credit instruments under section 101(a)(1) of the Act.


Sec. 1310.20  Amendments.

    The procedures in this part may be adopted or amended, or new 
procedures may be adopted, only by majority vote of the Board. 
Authority to adopt or amend these procedures may not be delegated.
[FR Doc. 02-8431 Filed 4-8-02; 8:45 am]
BILLING CODE 4810-25-P