[Federal Register Volume 71, Number 155 (Friday, August 11, 2006)]
[Proposed Rules]
[Pages 46174-46177]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13201]


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DEPARTMENT OF JUSTICE

Bureau of Alcohol, Tobacco, Firearms, and Explosives

27 CFR Part 555

[Docket No. ATF 9P; AG Order No. 2830-2006]
RIN 1140-AA24


Commerce in Explosives--Amended Definition of ``Propellant 
Actuated Device'' (2004R-3P)

AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), 
Department of Justice.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Justice is proposing to amend the 
regulations of the Bureau of Alcohol, Tobacco, Firearms, and Explosives 
(ATF) to clarify that the term ``propellant actuated device'' does not 
include hobby rocket motors or rocket-motor reload kits consisting of 
or containing ammonium perchlorate composite propellant (APCP), black 
powder, or other similar low explosives.

DATES: Comments must be submitted on or before November 9, 2006.

ADDRESSES: Send written comments to: James P. Ficaretta, Program 
Manager; Room 5250; Bureau of Alcohol, Tobacco, Firearms, and 
Explosives; P.O. Box 50221; Washington, DC 20091-0221; ATTN: ATF 9P. 
Written comments must include your mailing address and be signed, and 
may be of any length.
    Comments may also be submitted electronically to ATF at 
[email protected] or to http://www.regulations.gov by using the electronic 
comment form provided on that site. You may also view an electronic 
version of this proposed rule at the http://www.regulations.gov site. 
Comments submitted electronically must contain your name, mailing 
address and, if submitted by e-mail, your e-mail address. They must 
also reference this document docket number, as noted above, and be 
legible when printed on 8\1/2\'' x 11'' paper. ATF will treat comments 
submitted electronically as originals and ATF will not acknowledge 
receipt of comments submitted electronically. See the Public 
Participation section at the end of the SUPPLEMENTARY INFORMATION 
section for requirements for submitting written comments by facsimile.

FOR FURTHER INFORMATION CONTACT: James P. Ficaretta; Enforcement 
Programs and Services; Bureau of Alcohol, Tobacco, Firearms, and 
Explosives; U.S. Department of Justice; 650 Massachusetts Avenue, NW., 
Washington, DC 20226, telephone (202) 927-8203.

SUPPLEMENTARY INFORMATION: 

Background

    ATF is responsible for implementing Title XI, Regulation of 
Explosives (18 United States Code chapter 40), of the Organized Crime 
Control Act of 1970 (``Title XI''). One of the stated purposes of that 
Act is to reduce the hazards to persons and property arising from 
misuse and unsafe or insecure storage of explosive materials. Under 
section 847 of title 18, United States Code, the Attorney General ``may 
prescribe such rules and regulations as he deems reasonably necessary 
to carry out the provisions of this chapter.'' Regulations that 
implement the provisions of chapter 40 are contained in title 27, Code 
of Federal Regulations (CFR), part 555 (``Commerce in Explosives'').
    Section 841(d) of title 18 sets forth the definition of 
``explosives.'' ``Propellant actuated devices'' along with gasoline, 
fertilizers, and propellant actuated industrial tools manufactured, 
imported, or distributed for their intended purposes are exempted from 
this statutory definition by 27 CFR 555.141(a)(8).
    In 1970, when Title XI was enacted by Congress, the Judiciary 
Committee of the United States House of Representatives specifically 
considered and supported an exception for propellant actuated devices. 
H.R. Rep. No. 91-1549, 91st Cong., 2nd Sess. 64 (1970), reprinted in 
1970 U.S.C.C.A.N. 4007, 4041. Neither the statute nor the legislative 
history defines ``propellant actuated device.'' In 1981, however, ATF 
added the following definition of ``propellant actuated device'' to its 
regulations: ``[a]ny tool or special mechanized device or gas generator 
system which is actuated by a propellant or which releases and directs 
work through a propellant charge.'' 27 CFR 555.11.
    In applying the regulatory definition, ATF has classified certain 
products as propellant actuated devices: aircraft slide inflation 
cartridges, inflatable automobile occupant restraint systems, nail 
guns, and diesel and jet engine starter cartridges. ATF also examined 
hobby rocket motors to determine whether they could be classified as 
propellant actuated devices. To be classified as a ``propellant 
actuated device,'' it is, in view of the definition set forth at 27 CFR 
555.11, at a minimum necessary that a particular item be susceptible of 
being deemed a ``tool,'' a ``special mechanized device,'' or a ``gas 
generator system.'' Additionally, logic dictates that it is necessary 
that a propellant actuated device contain and be actuated by 
propellant.
    To ascertain the common, contemporary meanings of ``tool,'' 
``special mechanized device,'' and ``gas generator system,'' it is 
useful to look to Merriam-Webster's Collegiate Dictionary (10th Ed., 
1997) (``Webster's''). Webster's defines ``tool'' in pertinent part as 
follows: ``a handheld device that aids in accomplishing a task * * *[;] 
the cutting or shaping part in a machine or machine tool * * *[;] a 
machine for shaping metal * * * '' Id. at 1243. ``Device'' is defined 
as ``something * * * contrived'' and, more specifically, as ``a piece 
of equipment or a mechanism designed to perform a special function.'' 
Id. at 317. For a particular device to be a ``special mechanized 
device,'' Webster's suggests it would be necessary that it be both 
unique and of a mechanical nature. (See definition of ``special,'' id. 
at 1128; definition of ``mechanize,'' id. at 721.) As to the term ``gas 
generator system,'' Webster's defines ``generator'' as ``an apparatus 
in which vapor or gas is formed'' and as ``a machine by which 
mechanical energy is changed into electrical energy.'' Id. at 485. 
Further, Webster's defines ``system'' as ``a regularly interacting or 
interdependent

[[Page 46175]]

group of items forming a unified whole.'' Id. at 1197. Thus, Webster's 
suggests that ``gas generator system'' is properly defined as ``a group 
of interacting or interdependent mechanical and/or electrical 
components that generates gas.''
    Although some may argue that certain hobby rocket motors are the 
products of complex design and construction, the hobby rocket motor 
consists essentially of ammonium perchlorate composite propellant 
(APCP) encased by a cardboard, plastic, or metallic cylinder. Though it 
also sometimes includes a nozzle, retaining cap, delay grain and 
ejection charge, the hobby rocket motor is little more than propellant 
in a casing, incapable of performing its intended function until fully 
installed (along with an ignition system) within a hobby rocket.
    The hobby rocket motor cannot be brought within the regulatory 
definition of propellant actuated device as a ``tool'' because it is 
neither ``handheld'' nor a complete ``device'' and because it is not a 
metal-shaping machine or a part thereof. Further, it cannot be 
considered to be a ``special mechanized device'' because, although 
clearly designed to serve a special purpose, it lacks the necessary 
indicia of a mechanized device. Indeed, the hobby rocket motor is in no 
way reminiscent of a ``mechanism.'' See id. at 721. Finally, because it 
has no interacting mechanical or electrical components, the hobby 
rocket motor cannot be deemed to be a gas generator system.
    In addition, in order to classify the hobby rocket motor as a 
propellant actuated device consistent with the regulatory definition, 
it would be necessary to conclude that the motor's cylindrical casing 
is a ``device'' that is actuated by propellant. This simply is not a 
reasonable interpretation in light of the context in which the hobby 
rocket motor is used. Because the hobby rocket motor is, in essence, 
simply the propellant that actuates the hobby rocket, and for the 
additional reasons stated in the preceding paragraphs, the motor itself 
cannot be construed to constitute a propellant actuated device.

Proposed Rule

    This proposed rule amends the definition of ``propellant actuated 
device'' in 27 CFR 555.11 to clarify ATF's determination that hobby 
rocket motors do not fall within the exemption to the explosives 
regulatory scheme for such devices.
    ATF is engaging in rulemaking with regard to this issue because on 
March 19, 2004, the United States District Court for the District of 
Columbia found that ATF has in the past advanced inconsistent positions 
regarding the application of the propellant actuated device exemption 
to hobby rocket motors. ATF issued two related letters in 1994 that 
could be interpreted to state that a fully assembled rocket motor would 
be considered a propellant actuated device if the rocket motor 
contained no more than 62.5 grams (2.2 ounces) of propellant material 
and produced less than 80 newton-seconds (17.92 pound seconds) of total 
impulse with thrust duration not less than 0.050 second. Prior to 
assembly, the letters observed, the propellant would not be exempt as a 
propellant actuated device in any amount.
    The 1994 letters are admittedly confusing in that they can be 
interpreted to intertwine the separate and distinct issues of the 
``propellant actuated device'' exemption found in 27 CFR 55.141(a)(8) 
(now, Sec.  555.141(a)(8)) and the long-standing ATF policy exempting 
rocket motors containing 62.5 grams or less of propellant that has its 
roots in the exemption then found at 27 CFR 55.141(a)(7). Had these 
1994 letters been drafted to reflect accurately ATF's interpretation of 
the regulations in existence at the time, they would have indicated 
that sport rocket motors were not propellant actuated devices for 
purposes of the regulatory exemption found in Sec.  55.141(a)(8) but 
instead that motors containing 62.5 grams or less of propellant were 
exempt from regulation pursuant to the exemption for ``toy propellant 
devices'' then found at Sec.  55.141(a)(7). Although the ``toy 
propellant device'' exemption was removed from the regulations and, due 
to administrative error, was not replaced as intended with a specific 
reference to the 62.5-gram threshold, ATF continued to treat hobby 
rocket motors containing 62.5 grams or less of propellant as exempt 
from regulation as clearly set forth in a 2000 letter to counsel for 
the National Association of Rocketry and the Tripoli Rocketry 
Association. The Department notes that the 62.5-gram exemption 
threshold is the subject of another rulemaking proceeding (see Notice 
No. 968, 68 FR 4406, January 29, 2003).
    To remedy any perceived inconsistency and to clarify ATF's policy, 
this proposed rule sets forth an amended regulatory definition 
specifically stating that hobby rocket motors and rocket-motor reload 
kits consisting of or containing APCP, black powder, or other similar 
low explosives, regardless of amount, do not fall within the 
``propellant actuated device'' exception and are subject to all 
applicable Federal explosives controls pursuant to 18 U.S.C. 841 et 
seq., the regulations in 27 CFR part 555, and applicable ATF policy.
    Implementation of this proposed amendment is important to public 
safety, and consistent regulatory enforcement efforts. The proposed 
rule will confirm the position that hobby rocket motors are not exempt 
from Federal explosives regulation, pursuant to the propellant actuated 
device exception. The rule also clarifies that hobby rocket motors 
cannot legally be classified as propellant actuated devices due to the 
nature of their design and function.

How This Document Complies With the Federal Administrative Requirements 
for Rulemaking

A. Executive Order 12866

    This proposed rule has been drafted and reviewed in accordance with 
Executive Order 12866, ``Regulatory Planning and Review'' section 1(b), 
Principles of Regulation. The Department of Justice has determined that 
this proposed rule is a ``significant regulatory action'' under 
Executive Order 12866, section 3(f), Regulatory Planning and Review, 
and accordingly this proposed rule has been reviewed by the Office of 
Management and Budget. However, this proposed rule will not have an 
annual effect on the economy of $100 million, nor will it adversely 
affect in a material way the economy, a sector of the economy, 
productivity, competition, jobs, the environment, public health, or 
safety, or State, local or tribal governments or communities. 
Accordingly, this proposed rule is not an ``economically significant'' 
rulemaking as defined by Executive Order 12866.
    This proposed rule merely clarifies ATF's position that hobby 
rocket motors and rocket-motor reload kits consisting of or containing 
APCP, black powder, or other similar low explosives, regardless of 
amount, do not fall within the ``propellant actuated device'' 
exception. The proposed rule will not in any way expand the universe of 
rocket motors and rocket-motor reload kits that will remain subject to 
ATF regulation. Accordingly, unless they fall within ATF's exemption 
for rocket motors containing 62.5 grams or less of propellant, rocket 
motors will remain subject to all applicable Federal explosives 
controls pursuant to 18 U.S.C. 841 et seq., the regulations in part 
555, and applicable ATF policy.
    Rocketry hobbyists who acquire and use motors containing 62.5 grams 
of propellant or less, however, can continue to enjoy their hobby on an

[[Page 46176]]

exempt basis, i.e., without regard to the requirements of part 555. 
Without the 62.5 gram exemption, a typical rocket motor would be 
required to be stored in a type-4 magazine (costing approximately $400) 
because of the explosives contained in the motor. ATF has published a 
proposed rule that will incorporate its existing 62.5-gram exemption 
threshold into its explosives regulations (see Notice No. 968, 68 FR 
4406, January 29, 2003).
    As noted above, rocket motors containing more than 62.5 grams of 
propellant will continue to be regulated by ATF. In 2002, Congress 
enacted the Safe Explosives Act (SEA) which, in part, imposed new 
licensing and permitting requirements on the intrastate possession of 
explosives. Under the SEA, all persons who wish to receive explosive 
materials must hold a Federal explosives license or permit. Prior to 
its enactment, only persons who transported, shipped, or received 
explosive materials in interstate commerce were required to obtain a 
license or permit. Now, intrastate receipt, shipment, and 
transportation also are covered. ATF recognizes the possibility that 
some rocketry hobbyists may be operating under the false assumption 
that all rocket motors, regardless of size, were exempted from 
regulation under the ``propellant actuated device'' exception being 
clarified by this proposed rule. It remains the case, however, that 
rocketry hobbyists wishing to utilize rocket motors containing more 
than 62.5 grams of propellant must comply with the existing applicable 
requirements in order to obtain such rocket motors. The Department 
welcomes comments on the number of individuals who may be expected to 
terminate their participation in the use of rocket motors containing 
more than 62.5 grams of propellant once they become aware that they 
must comply with the applicable licensing and permitting requirements. 
The Department also welcomes comments on what impact any such decline 
in participation will have on the businesses that provide support to 
rocketry hobbyists in the form of parts, materials, rocket motors, and 
other launch accessories.

B. Executive Order 13132

    This proposed rule will not have substantial direct effects on the 
States, on the relationship between the National Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, the Attorney General has determined that this 
proposed regulation does not have sufficient federalism implications to 
warrant the preparation of a federalism summary impact statement.

C. Executive Order 12988: Civil Justice Reform

    This proposed rule meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 605(b)) requires an agency 
to conduct a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. Small entities include small 
businesses, small not-for-profit enterprises, and small governmental 
jurisdictions. The Attorney General has reviewed this proposed 
regulation and, by approving it, certifies that this proposed rule will 
not have a significant economic impact on a substantial number of small 
entities. As indicated, the proposed rule merely clarifies ATF's 
position that hobby rocket motors and rocket-motor reload kits 
consisting of or containing APCP, black powder, or other similar low 
explosives, regardless of amount, do not fall within the ``propellant 
actuated device'' exception and are subject to all applicable Federal 
explosives controls pursuant to 18 U.S.C. 841 et seq., the regulations 
in part 555, and applicable ATF policy. The Department believes that 
the proposed rule will not have a significant impact on small 
businesses. Under the law and its implementing regulations, persons 
engaging in the business of manufacturing, importing, or dealing in 
explosive materials are required to be licensed (e.g., an initial fee 
of $200 for obtaining a dealer's license for a 3-year period; $100 
renewal fee for a 3-year period). Other persons who acquire or receive 
explosive materials are required to obtain a permit. Licensees and 
permittees must comply with the provisions of part 555, including those 
relating to storage and other safety requirements, as well as 
recordkeeping and theft reporting requirements. This will not change if 
the regulations are adopted as proposed.
    Rocket motors containing 62.5 grams or less of explosive 
propellants (e.g., APCP) and reload kits that can be used only in the 
assembly of a rocket motor containing a total of no more than 62.5 
grams of propellant are exempt from regulation, including permitting 
and storage requirements. Typically, rocket motors containing more than 
62.5 grams of explosive propellant would be required to be stored in a 
type-4 magazine that costs approximately $400; however, this proposed 
rule would not impact ATF's storage requirements nor would it affect 
the applicability of ATF's 62.5-gram exemption.

E. Small Business Regulatory Enforcement Fairness Act of 1996

    This proposed rule is not a major rule as defined by section 251 of 
the Small Business Regulatory Enforcement Fairness Act of 1996. 5 
U.S.C. 804. This proposed rule will not result in an annual effect on 
the economy of $100 million or more; a major increase in costs or 
prices; or significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based companies to compete with foreign-based companies in 
domestic and export markets.

F. Unfunded Mandates Reform Act of 1995

    This proposed rule will not result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the private 
sector of $100 million or more in any one year, and it will not 
significantly or uniquely affect small governments. Therefore, no 
actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

G. Paperwork Reduction Act of 1995

    This proposed rule does not impose any new reporting or 
recordkeeping requirements under the Paperwork Reduction Act.

Public Participation

    ATF is requesting comments on the proposed regulations from all 
interested persons. ATF is also specifically requesting comments on the 
clarity of this proposed rule and how it could be made easier to 
understand.
    Comments received on or before the closing date will be carefully 
considered. Comments received after that date will be given the same 
consideration if it is practical to do so, but assurance of 
consideration cannot be given except as to comments received on or 
before the closing date.
    ATF will not recognize any material in comments as confidential. 
Comments may be disclosed to the public. Any material that the 
commenter considers to be confidential or inappropriate for disclosure 
to the public should not be included in the comment. The name of

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the person submitting a comment is not exempt from disclosure.

A. Submitting Comments by Fax

    You may submit written comments by facsimile transmission to (202) 
927-0506. Facsimile comments must:
     Be legible;
     Include your mailing address;
     Reference this document number;
     Be 8\1/2\'' x 11'' in size;
     Contain a legible written signature; and
     Be not more than five pages long.
    ATF will not acknowledge receipt of facsimile transmissions. ATF 
will treat facsimile transmissions as originals.

B. Request for Hearing

    Any interested person who desires an opportunity to comment orally 
at a public hearing should submit his or her request, in writing, to 
the Director within the 90-day comment period. The Director, however, 
reserves the right to determine, in light of all circumstances, whether 
a public hearing is necessary.

C. Disclosure

    Copies of this proposed rule and the comments received will be 
available for public inspection by appointment during normal business 
hours at: ATF Reference Library, Room 6480, 650 Massachusetts Avenue, 
NW., Washington, DC 20226, telephone (202) 927-7890.

Regulation Identification Number

    A regulation identification number (RIN) is assigned to each 
regulatory action listed in the Unified Agenda of Federal Regulations. 
The Regulatory Information Service Center publishes the Unified Agenda 
in the Federal Register in April and October of each year. The RIN 
contained in the heading of this document can be used to cross-
reference this action with the Unified Agenda.

Drafting Information

    The author of this document is James P. Ficaretta; Enforcement 
Programs and Services; Bureau of Alcohol, Tobacco, Firearms, and 
Explosives.

List of Subjects in 27 CFR Part 555

    Administrative practice and procedure, Authority delegations, 
Customs duties and inspection, Explosives, Hazardous materials, 
Imports, Penalties, Reporting and recordkeeping requirements, Safety, 
Security measures, Seizures and forfeitures, Transportation, and 
Warehouses.

Authority and Issuance

    Accordingly, for the reasons discussed in the preamble, 27 CFR part 
555 is proposed to be amended as follows:

PART 555--COMMERCE IN EXPLOSIVES

    1. The authority citation for 27 CFR part 555 continues to read as 
follows:

    Authority: 18 U.S.C. 847.

    2. Section 555.11 is amended by revising the definition for 
``Propellant actuated device'' to read as follows:


Sec.  555.11  Meaning of terms.

* * * * *
    Propellant actuated device. (a) Any tool or special mechanized 
device or gas generator system that is actuated by a propellant or 
which releases and directs work through a propellant charge.
    (b) The term does not include--
    (1) Hobby rocket motors consisting of ammonium perchlorate 
composite propellant, black powder, or other similar low explosives, 
regardless of amount; and
    (2) Rocket-motor reload kits that can be used to assemble hobby 
rocket motors containing ammonium perchlorate composite propellant, 
black powder, or other similar low explosives, regardless of amount.
* * * * *

    Dated: August 7, 2006.
Paul J. McNulty,
Acting Attorney General.
 [FR Doc. E6-13201 Filed 8-10-06; 8:45 am]
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