Final Regulation

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Federal Register / Vol. 63, No. 12 / Tuesday, January 20, 1998 / Rules and Regulations

frequent and routine amendments are
necessary to keep them operationally
current. It, therefore—(1) is not a
‘‘significant regulatory action’’ under
Executive Order 12866; (2) is not a
‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
regulatory evaluation as the anticipated
impact is so minimal. For the same
reason, the FAA certifies that this
amendment will not have a significant
economic impact on a substantial
number of small entities under the
criteria of the Regulatory Flexibility Act.
List of Subjects in 14 CFR Part 97
Air traffic control, Airports,
Navigation (air).
Issued in Washington, DC on December 26,
1997.
Richard O. Gordon,
Acting Director, Flight Standards Service.

Adoption of the Amendment
Accordingly, pursuant to the
authority delegated to me, part 97 of the
Federal Aviation Regulations (14 CFR
part 97) is amended by establishing,
amending, suspending, or revoking
Standard Instrument Approach
Procedures, effective at 0901 UTC on
the dates specified, as follows:
PART 97—STANDARD INSTRUMENT
APPROACH PROCEDURES
1. The authority citation for part 97 is
revised to read as follows:
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120, 44701; and 14 CFR 11.49(b)(2).

2. Part 97 is amended to read as
follows:
§§ 97.23, 97.25, 97.27, 97.29, 97.31, 97.33,
97.35 [Amended]

By amending; § 97.23 VOR, VOR/
DME, VOR or TACAN, and VOR/DME
or TACAN; § 97.25 LOC, LOC/DME,
LDA, LDA/DME, SDF, SDF/DME;
§ 97.27 NDB, NDB/DME; § 97.29 ILS,
ILS/DME, ISMLS, MLS, MLS/DME,
MLS/RNAV; § 97.31 RADAR SIAPs;
§ 97.33 RNAV SIAPs; and § 97.35
COPTER SIAPs; identified as follows:
* * * Effective January 29, 1998
Plymouth, MA, Plymouth Muni, NDB RWY
6, Amdt 4
Gettysburg, SD, Gettysburg Muni, GPS RWY
31, Orig
Galeton, PA, Cherry Springs, VOR–A, Amdt
6
Suffolk, VA, Suffolk Muni, LOC RWY 4,
Amdt 1
Suffolk, VA, Suffolk Muni, NDB RWY 4,
Amdt 1
* * * Effective February 26, 1998
Cortez, CO, Cortez, Muni, GPS RWY 3, Orig

Keokuk, IA, Keokuk Muni, LOC/DME RWY
26, Orig
Moose Lake, MN, Moose Lake Carlton
County, NDB or GPS RWY 4, Amdt 1
Moose Lake, MN, Mose Lake Carlton County,
GPS RWY 4, Orig
Ogallala, NE, Searle Field, GPS RWY 26, Orig
Butler, PA, Butler County/K W Scholter
Field, ILS RWY 8, Amdt 5
Millington, TN, Millington Muni, ILS RWY
22, Orig
Dallas, TX, Dallas Love Field, RADAR–1,
Amdt 26, Cancelled
Rutland, VT, Rutland State, LOC/DME 1
RWY 19, Amdt 1
South Boston, VA, William M. Tuck, VOR
OR GPS–A, Amdt 7
Chetek, WI, Chetek Muni-Southworth, GPS
RWY 35, Orig
[FR Doc. 98–869 Filed 1–16–98; 8:45 am]
BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 8758]
RIN 1545–AU28

Nuclear Decommissioning Funds;
Revised Schedules of Ruling Amounts
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:

This document contains final
regulations relating to requests for
revised schedules of ruling amounts for
nuclear decommissioning reserve funds.
The regulations amend existing
regulations to ease the burden on
affected taxpayers by permitting electing
taxpayers with qualifying interests in
nuclear power plants to adjust their
ruling amounts under a formula or
method rather than by filing a request
for a revised schedule of ruling
amounts.
DATES: The final regulations are
effective January 20, 1998.
FOR FURTHER INFORMATION CONTACT:
Peter Friedman, (202) 622–3110 (not a
toll-free number).
SUMMARY:

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act
The collection of information
contained in these final regulations has
been reviewed and approved by the
Office of Management and Budget in
accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
the control number 1545–1511.
Responses to this collection of
information are voluntary.
An agency may not conduct or
sponsor, and a person is not required to

respond to, a collection of information
unless the collection of information
displays a valid control number.
The estimated average annual burden
per recordkeeper is 5 hours.
Comments concerning the accuracy of
this burden estimate and suggestions for
reducing this burden should be sent to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer, T:FP,
Washington, DC 20024, and to the
Office of Management and Budget, Attn:
Desk Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC
20503.
Books or records relating to a
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and return information are
confidential, as required by 26 U.S.C.
6103.
Background
This document contains final
regulations under section 468A of the
Internal Revenue Code. Section 468A
was added to the Internal Revenue Code
by section 91(c) of the Tax Reform Act
of 1984 (Pub. L. 98–369). Significant
amendments were made to section 468A
by section 1917 of the Energy Policy Act
of 1992 (Pub. L. 102–486).
Section 468A(a) allows an electing
taxpayer to deduct the amount of
payments made by the taxpayer to a
nuclear decommissioning reserve fund.
Section 468A(b) limits the amount of
these payments for any taxable year to
the lesser of the ruling amount or the
amount of decommissioning costs
included in the taxpayer’s cost of
service for ratemaking purposes for that
taxable year.
Section 468A(d) provides that no
deduction shall be allowed unless the
taxpayer requests, and receives, a
schedule of ruling amounts from the
Secretary. A ruling amount is, with
respect to any taxable year, the amount
determined by the Secretary as
necessary to (1) fund that portion of the
nuclear decommissioning costs of the
taxpayer with respect to the nuclear
power plant which bears the same ratio
to the total nuclear decommissioning
costs with respect to the nuclear power
plant as the period for which the
nuclear decommissioning fund is in
effect bears to the estimated useful life
of such nuclear power plant; and (2)
prevent any excessive funding of such
costs or the funding of such costs at a
rate more rapid than level funding,
taking into account such discount rates
as the Secretary deems appropriate.
Section 468A(d)(3) provides that the

Federal Register / Vol. 63, No. 12 / Tuesday, January 20, 1998 / Rules and Regulations
Secretary shall, at least once during the
useful life of the nuclear power plant (or
more frequently, upon the request of the
taxpayer), review and, if necessary,
revise the schedule of ruling amounts.
Section 1.468A–3 sets forth the rules
relating to the determination of ruling
amounts. The regulations permit the use
of a formula or method for determining
a schedule of ruling amounts (in lieu of
a schedule of ruling amounts specifying
a dollar amount for each taxable year),
but only if the public utility commission
establishing or approving the amount of
decommissioning costs to be included
in cost of service for ratemaking does
not estimate the cost of
decommissioning in future dollars.
The regulations contain provisions for
the review and revision of schedules of
ruling amounts and set forth
circumstances under which a taxpayer
must request a revision to its schedule
of ruling amounts. In general, a
schedule of ruling amounts must be
reviewed at 10 year intervals. If the
schedule is determined under a formula
or method, however, the period between
reviews may not exceed 5 years.
The regulations provide that a
taxpayer may request an elective review
of its schedule of ruling amounts. A
taxpayer seeking to maximize its
deductions under section 468A
generally needs to request an elective
review of its schedule of ruling amounts
each time a public utility commission
changes previously established amounts
of decommissioning costs. A notice of
proposed rulemaking (REG–209828–96)
relating to these rules was published in
the Federal Register on December 23,
1996 (61 FR 67510). The notice
proposes to amend § 1.468A–3(a)(4) by
eliminating the restriction on the use of
a formula or method for determining a
schedule of ruling amounts and to
revise the mandatory review
requirements.
Written comments were received in
response to the notice of proposed
rulemaking, and a public hearing was
held on May 13, 1997. After considering
the written comments and the
statements made at the public hearing,
the proposed rules are adopted as
modified by this Treasury Decision.
Explanation of Provisions
The final regulations provide that a
taxpayer may request approval of a
formula or method for determining a
schedule of ruling amounts (rather than
a schedule specifying a dollar amount
for each taxable year) that is consistent
with the principles and provisions of
the rules relating to the determination of
ruling amounts.

The final regulations ease the filing
burden on taxpayers by permitting them
to adjust their ruling amounts under a
formula or method (rather than by filing
a request for a revised schedule of ruling
amounts). Thus, a taxpayer may
maximize its deductions under section
468A without requesting a revised
schedule of ruling amounts each time a
public utility commission changes the
amount of decommissioning costs
included in the taxpayer’s cost of
service if, under the taxpayer’s formula
or method, the commission’s action
results in a corresponding change in
ruling amounts. The commentators all
agreed with the expanded availability of
ruling amounts based on formulas or
methods.
In addition, the final regulations
modify the mandatory review
provisions applicable to schedules of
ruling amounts determined under a
formula or method. The proposed
regulations eliminate the rule requiring
review of those schedules after 5 years
but make those schedules subject to the
general rule requiring review at 10 year
intervals. In addition, the proposed
regulations require taxpayers to request
a revised schedule of ruling amounts if,
beginning with the second taxable year
during which the most recently issued
formula or method is in effect, the
ruling amount for a taxable year (1)
differs by more than 25 percent from the
ruling amount for any preceding taxable
year during which such formula or
method was in effect; or (2) differs by
more than 10 percent from the ruling
amount for the immediately preceding
taxable year. The commentators
generally favored either a retention of
the 5 year review period without limits
on differences in ruling amounts or an
increase in the percentage by which
ruling amounts are permitted to differ.
In response to these suggestions, the
final regulations retain the 5 year review
requirement, increase the overall
percentage by which ruling amounts
may differ, and eliminate the 10 percent
limitation on changes from one year to
the next.
Some commentators suggested that all
elements of a formula should be
permitted to be variable. Nothing in the
proposed regulations was meant to
suggest otherwise. In order to afford
different taxpayers maximum flexibility
in using a formula, the regulations do
not specify which elements must be
fixed and which must be variable.
Instead, the formula, itself, will
determine whether an element is fixed
or variable. A fixed element is one that
is assumed to retain the same value
regardless of action by the applicable
public utility commission.

2893

Some commentators suggested that a
taxpayer that recently received a
schedule of ruling amounts should be
permitted to vary this schedule using a
formula or method that has not been
approved by the Service. This
suggestion is inconsistent with the
Service’s obligation to issue and review
schedules of ruling amounts and is not
adopted.
Several commentators requested that
the existing user fee for obtaining a
schedule of ruling amounts under
section 468A is excessive and should be
waived or reduced. Because this subject
is not within the scope of this
regulations project, it is not addressed
in the final regulations.
Finally, some commentators
suggested that the regulations should
address the situation where a taxpayer,
based on a good faith but erroneous
calculation of the percentage
limitations, fails to comply with the
mandatory review provisions. Partly in
response to this suggestion, the
percentage limitation has been
simplified.
Effective Date
These regulations are applicable for
requests for schedules of ruling amounts
made on or after January 20, 1998.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in EO
12866. Therefore, a regulatory
assessment is not required. It has also
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations. It is hereby certified that the
collection of information in the
regulation will not have a significant
impact on a substantial number of small
entities. This certification is based on
the fact that taxpayers with qualifying
interests in a nuclear power plant are
generally large entities. Thus, because
the regulation applies only to these
taxpayers and does not impose a
collection of information on small
entities, the Regulatory Flexibility Act
(5 U.S.C. chapter 6) does not apply.
Pursuant to section 7805(f) of the
Internal Revenue Code, the notice of
proposed rulemaking preceding these
regulations was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Drafting Information
The principal author of these
regulations is Peter Friedman, Office of
Assistant Chief Counsel (Passthroughs
and Special Industries). However, other

2894

Federal Register / Vol. 63, No. 12 / Tuesday, January 20, 1998 / Rules and Regulations

personnel from the IRS and Treasury
Department participated in their
development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 602
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.468A–2 is amended
as follows:
1. The text of paragraph (f)(3)
following the heading is designated as
paragraph (f)(3)(i).
2. Paragraph (f)(3)(ii) is added.
The addition reads as follows:
§ 1.468A–2

Treatment of electing taxpayer.

*

*
*
*
*
(f) * * *
(3) * * *
(i) * * *
(ii) The requirement of this paragraph
(f)(3) does not apply if the taxpayer
determines its schedule of ruling
amounts under a formula or method
obtained under § 1.468A–3(a)(4) and the
cost of service amount is a variable
element of that formula or method.
*
*
*
*
*
Par. 3. Section 1.468A–3 is amended
as follows:
1. Paragraph (a)(4) is revised.
2. Paragraph (e)(5) is added.
3. Paragraphs (i)(1)(ii)(A),
(i)(1)(iii)(A)(3), and (i)(1)(iii)(B) are
revised.
4. Paragraph (i)(1)(iii)(C) is added.
The revisions and additions read as
follows:
§ 1.468A–3

Ruling amount.

(a) * * *
(4) The Internal Revenue Service will
approve, at the request of the taxpayer,
a formula or method for determining a
schedule of ruling amounts (rather than
a schedule specifying a dollar amount
for each taxable year) that is consistent
with the principles and provisions of
this section. See paragraph (i)(1)(ii) of
this section for a special rule relating to
the mandatory review of ruling amounts

that are determined pursuant to a
formula or method.
*
*
*
*
*
(e) * * *
(5) A formula or method obtained
under paragraph (a)(4) of this section
may provide for changes in an estimated
date described in paragraph (e)(1) or (2)
of this section to reflect changes in the
ratemaking assumptions used to
determine rates (whether interim or
final) that are established or approved
by the applicable public utility
commission after the filing of the
request for approval of a formula or
method.
*
*
*
*
*
(i) * * *
(1) * * *
(ii)(A) Any taxpayer that has obtained
a formula or method for determining a
schedule of ruling amounts for any
taxable year under paragraph (a)(4) of
this section must file a request for a
revised schedule on or before the earlier
of the deemed payment deadline for the
fifth taxable year that begins after its
taxable year in which the most recent
formula or method was approved or the
deemed payment deadline for the first
taxable year that begins after a taxable
year in which there is a substantial
variation in the ruling amount
determined under the most recent
formula or method. There is a
substantial variation in the ruling
amount determined under the formula
or method in effect for a taxable year if
the ruling amount for the year and the
ruling amount for any earlier year since
the most recent formula or method was
approved differ by more than 50 percent
of the smaller amount.
*
*
*
*
*
(iii) * * *
(A) * * *
(3) Reduces the amount of
decommissioning costs to be included
in cost of service for any taxable year;
(B) The taxpayer’s most recent request
for a schedule of ruling amounts did not
provide notice to the Internal Revenue
Service of such action by the public
utility commission; and
(C) In the case of a taxpayer that
determines its schedule of ruling
amounts under a formula or method
obtained under paragraph (a)(4) of this
section, the item increased, adjusted, or
reduced is a fixed (rather than a
variable) element of that formula or
method.
*
*
*
*
*
Par. 4. Section 1.468A–8 is amended
by adding paragraph (b)(12) to read as
follows:

§ 1.468A–8
rules.

Effective date and transitional

*

*
*
*
*
(b) * * *
(12) Use of formula or method.
Section 1.468A–2(f)(3)(ii) and § 1.468A–
3(a)(4) (to the extent it permits a formula
or method when the applicable public
utility commission estimates the cost of
decommissioning in future dollars),
(e)(5), (i)(1)(ii)(A) (to the extent it
requires the taxpayer to file a request for
a revised schedule because of a
substantial variation in ruling amounts),
and (i)(1)(iii)(C) apply only to requests
for a formula or method submitted on or
after January 20, 1998 and to formulas
and methods obtained in response to
those requests.
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 5. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.

Par. 6. In § 602.101(c), the entry for
1.468A–3 in the table is revised to read
as follows:
§ 602.101

*

OMB Control numbers.

*
*
(c) * * *

*

*
Current
OMB control No.

CFR part or section where
identified or described

*
*
*
*
*
1.468A–3 ...................................
1545–1269
1545–1378
1545–1511
*

*

*

*

*

Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
Approved: January 9, 1998.
Donald C. Lubick,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. 98–1177 Filed 1–16–98; 8:45 am]
BILLING CODE 4830–01–U

DEPARTMENT OF TRANSPORTATION
Coast Guard
33 CFR Part 117
[CGD01–96–002]
RIN 2115–AE47

Drawbridge Operation Regulations:
Mystic River, MA
AGENCY:

Coast Guard, DOT.