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Federal Register / Vol. 72, No.

244 / Thursday, December 20, 2007 / Rules and Regulations 72253

Protection of Children which guides the Coast Guard in vessel associated with the on-scene
We have analyzed this rule under complying with the National dredge operations or a representative of
Executive Order 13045, Protection of Environmental Policy Act of 1969 the Captain of the Port.
Children from Environmental Health (NEPA) (42 U.S.C. 4321–4370f), and (3) To request an escort to transit the
Risks and Safety Risks. This rule is not have concluded that there are no factors Safety Zone contact the on-scene dredge
an economically significant rule and in this case that would limit the use of Master on VHF–FM channel 16 or 13 or
does not create an environmental risk to a categorical exclusion under section via search light or sound making device
health or risk to safety that may 2.B.2 of the Instruction. Therefore, this 30 minutes in advance of desired
disproportionately affect children. rule is categorically excluded, under transit.
figure 2–1, paragraph (34)(g), of the Dated: November 9, 2007.
Indian Tribal Governments Instruction, from further environmental Russell C. Proctor,
This rule does not have tribal documentation because it establishes a CDR, U.S. Coast Guard, Acting Captain of
implications under Executive Order safety zone. A final ‘‘Environmental the Port, Portland, OR.
13175, Consultation and Coordination Analysis Check List’’ and a final [FR Doc. E7–24768 Filed 12–19–07; 8:45 am]
with Indian Tribal Governments, ‘‘Categorical Exclusion Determination’’
BILLING CODE 4910–15–P
because it does not have a substantial will be available in the docket where
direct effect on one or more Indian indicated under ADDRESSES.
tribes, on the relationship between the
List of Subjects in 33 CFR Part 165 LIBRARY OF CONGRESS
Federal Government and Indian tribes,
or on the distribution of power and Harbors, Marine Safety, Navigation
Copyright Royalty Board
responsibilities between the Federal (water), Reporting and recordkeeping
Government and Indian tribes. requirements, Security measures,
37 CFR Part 383
Waterways.
Energy Effects [Docket No. 2005–5 CRB DTNSRA]
■ For the reasons discussed in the
We have analyzed this rule under preamble, the Coast Guard amends 33
Executive Order 13211, Actions CFR part 165 as follows: Digital Performance Right in Sound
Concerning Regulations That Recordings and Ephemeral
Significantly Affect Energy Supply, PART 165—REGULATED NAVIGATION Recordings for a New Subscription
Distribution, or Use. We have AREAS AND LIMITED ACCESS AREAS Service
determined that it is not a ‘‘significant AGENCY: Copyright Royalty Board,
energy action’’ under that order because ■ 1. The authority citation for part 165
continues to read as follows: Library of Congress.
it is not a ‘‘significant regulatory action’’
ACTION: Final rule.
under Executive Order 12866 and is not Authority: 33 U.S.C. 1226, 1231; 46 U.S.C.
likely to have a significant adverse effect Chapter 701; 50 U.S.C. 191, 195; 33 CFR SUMMARY: The Copyright Royalty Judges
on the supply, distribution, or use of 1.05–1, 6.04–1, 6.04–6, and 160.5; Pub. L. are publishing final regulations that set
energy. The Administrator of the Office 107–295, 116 Stat. 2064; Department of
Homeland Security Delegation No. 0170.1.
the rates and terms for the use of sound
of Information and Regulatory Affairs recordings in transmissions made by
has not designated it as a significant ■ 2. A temporary section 165.T13–043 is new subscription services and for the
energy action. Therefore, it does not added to read as follows: making of ephemeral recordings
require a Statement of Energy Effects necessary for the facilitation of such
under Executive Order 13211. § 165.T13–043 Safety Zone: Lower Cowlitz
transmissions for the period
River Dredging Operation in the Captain of
Technical Standards the Port Portland Zone. commencing from the inception of the
new subscription service through
The National Technology Transfer (a) Safety Zone. The following area is
December 31, 2010.
and Advancement Act (NTTAA) (15 designated a safety zone—
(1) Location. The waters encompassed DATES: These regulations become
U.S.C. 272 note) directs agencies to use
by the following points: 46° 05′50″N effective on January 22, 2008.
voluntary consensus standards in their
122° 55′52″W southeastward to 46° FOR FURTHER INFORMATION CONTACT:
regulatory activities unless the agency
provides Congress, through the Office of 05′30″N 122° 55′11″W turning Richard Strasser, Senior Attorney, or
Management and Budget, with an northwest to 46° 05′44″N 122° 54′19″W Gina Giuffreda, Attorney Advisor, by
explanation of why using these continuing along the southeasterly bank telephone at (202) 707–7658 or e-mail
standards would be inconsistent with of the Cowlitz River to 46° 06′34″N 122° crb@loc.gov.
applicable law or otherwise impractical. 53′27″W crossing the river bank to bank SUPPLEMENTARY INFORMATION:
Voluntary consensus standards are to 46° 06′33″N 122° 53′35″W following
the northerly bank of the Cowlitz River Background
technical standards (e.g., specifications
of materials, performance, design, or back to the point of origin. This safety In 1995, Congress enacted the Digital
operation; test methods; sampling zone will include the entrance to Performance Right in Sound Recordings
procedures; and related management Carrols Channel and the Old Mouth Act of 1995 (‘‘DPRA’’), Public Law No.
systems practices) that are developed or Cowlitz. 104–39, which created an exclusive
adopted by voluntary consensus (2) Effective time and date. 8 a.m. on right for copyright owners of sound
standards bodies. Monday, November 12, 2007 to 5 p.m. recordings subject to certain limitations,
This rule does not use technical on Friday, February 29, 2008. to perform publicly the sound
standards. Therefore, we did not (b) Regulations. (1) Entry into this recordings by means of certain digital
consider the use of voluntary consensus Safety Zone is prohibited unless audio transmissions. Among the
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standards. authorized by the Captain of the Port, limitations on the performance right
his designated representative, or the was the creation of a new compulsory
Environment Master of the on-scene dredge vessel. license for nonexempt noninteractive
We have analyzed this rule under (2) Transit through the Safety Zone is digital subscription transmissions. 17
Commandant Instruction M16475.lD, prohibited without an escort from a U.S.C. 114(f).

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72254 Federal Register / Vol. 72, No. 244 / Thursday, December 20, 2007 / Rules and Regulations

Section 114 was later amended with issues in this litigation’’ and that ‘‘there List of Subjects in 37 CFR Part 383
the passage of the Digital Millennium are no more issues to try.’’ Transcript of Copyright, Digital audio
Copyright Act of 1998 (‘‘DMCA’’ or ‘‘the September 10, 2007, at p. 5. They also transmissions, Performance right, Sound
Act’’), Public Law No. 105–304, to cover stated that the settlement agreement recordings.
additional digital audio transmissions. would be submitted to the Judges for
These include transmissions made by approval and adoption pursuant to 17 Final Regulations
‘‘new subscription services.’’ For U.S.C. 801(b)(7)(A). Id. at 6. The ■ For the reasons set forth in the
purposes of the section 114 license, a proposed rates and terms codifying the preamble, the Copyright Royalty Judges
‘‘new subscription service’’ is ‘‘a service settlement agreement were filed on are adding part 383 to Chapter III of title
that performs sound recordings by October 30, 2007. 37 of the Code of Federal Regulations to
means of noninteractive subscription Section 801(b)(7)(A) allows for the
read as follows:
digital audio transmissions and that is adoption of rates and terms negotiated
not a preexisting subscription service or by ‘‘some or all of the participants in a PART 383—RATES AND TERMS FOR
a preexisting satellite digital audio radio proceeding at any time during the SUBSCRIPTION TRANSMISSIONS AND
service.’’ 17 U.S.C. 114(j)(8). proceeding’’ provided they are THE REPRODUCTION OF EPHEMERAL
In addition to expanding the section submitted to the Copyright Royalty RECORDINGS BY NEW
114 license, the DMCA also created a Judges for approval. This section SUBSCRIPTION SERVICES
statutory license to allow for the making provides that in such event:
of ephemeral reproductions for the (i) The Copyright Royalty Judges shall Sec.
purpose of facilitating certain digital provide to those that would be bound by the 383.1 General.
audio transmissions, including those terms, rates, or other determination set by 383.2 Definitions.
made by new subscription services. 17 any agreement in a proceeding to determine 383.3 Royalty fees for public performance
royalty rates an opportunity to comment on of sound recordings and the making of
U.S.C. 112(e). ephemeral recordings.
On October 31, 2005, pursuant to the agreement and shall provide to
participants in the proceeding under section 383.4 Terms for making payment of royalty
section 114(f)(2)(C), XM Satellite Radio, fees.
803(b)(2) that would be bound by the terms,
Inc. (‘‘XM’’) filed with the Copyright
rates, or other determination set by the Authority: 17 U.S.C. 112(e), 114, and
Royalty Judges (‘‘Judges’’) a Petition to agreement an opportunity to comment on the 801(b)(1).
Initiate and Schedule Proceeding for a agreement and object to its adoption as a
New Type of Subscription Service for a basis for statutory terms and rates; and § 383.1 General.
‘‘new type of subscription service (ii) The Copyright Royalty Judges may (a) Scope. This part 383 establishes
[which] performs sound recordings on decline to adopt the agreement as a basis for rates and terms of royalty payments for
digital audio channels programmed by statutory terms and rates for participants that
the public performance of sound
the licensee for transmission by a are not parties to the agreement, if any
participant described in clause (i) objects to recordings in certain digital
satellite television distribution service transmissions by Licensees in
the agreement and the Copyright Royalty
to its residential customers, where the Judges conclude, based on the record before accordance with the provisions of 17
audio channels are bundled with them if one exists, that the agreement does U.S.C. 114, and the making of certain
television channels as part of a ‘basic’ not provide a reasonable basis for setting ephemeral recordings by Licensees in
package of service and not for a separate statutory terms or rates. accordance with the provisions of 17
fee.’’ XM Petition at 1. The petition 17 U.S.C. 801(b)(7)(A). Accordingly, on U.S.C. 112(e), during the period
noted that this new subscription service November 9, 2007, the Judges published commencing from the inception of the
was to commence on or about November a Notice of Proposed Rulemaking Licensees’ Services and continuing
15, 2005. Id. (‘‘NPRM’’) requesting comment on the through December 31, 2010.
On December 5, 2005, pursuant to 17 proposed rates and terms submitted to (b) Legal compliance. Licensees
U.S.C. 804(b)(3)(C)(ii), the Judges the Judges. 72 FR 63532. Comments relying upon the statutory licenses set
published a notice in the Federal were due by December 10, 2007. In forth in 17 U.S.C. 112 and 114 shall
Register announcing commencement of response to the NPRM, the Judges comply with the requirements of those
the proceeding to set rates and terms for received only one comment, which was sections and the rates and terms of this
royalty payments under sections 114 submitted by SoundExchange, part.
and 112 for the activities of the new supporting the adoption of the proposed (c) Relationship to voluntary
subscription service described in the regulations. agreements. Notwithstanding the
XM Petition and requesting interested Having received no objections from a royalty rates and terms established in
parties to submit their Petitions to party that would be bound by the this part, the rates and terms of any
Participate. 70 FR 72471. Petitions to proposed rates and terms and that license agreements entered into by
participate were received from Sirius would be willing to participate in Copyright Owners and Licensees shall
Satellite Radio, Inc. (‘‘Sirius’’), XM, further proceedings, the Copyright apply in lieu of the rates and terms of
MTV Networks (‘‘MTV’’), and Royalty Judges, by this notice, are this part to transmissions with the scope
SoundExchange, Inc. adopting final regulations which set the of such agreements.
The Judges set the schedule for the rates and terms for the use of sound
proceeding for both the direct and recordings in transmissions made by § 383.2 Definitions.
rebuttal phases of the proceeding, new subscription services and for the For purposes of this part, the
including the dates for the filing of the making of ephemeral recordings following definitions shall apply:
written statements and the dates for oral necessary for the facilitation of such (a) Applicable Period is the period for
testimony for each phase. Subsequent to transmissions for the period which a particular payment to the
the presentation of the direct phase of commencing from the inception of the
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their case and the filing of their written new subscription service through sections 114 and 112 are the same as those, unless
rebuttal statements, but prior to the oral otherwise specified, adopted to govern the activities
December 31, 2010.1 of the preexisting satellite digital audio radio
presentation of their rebuttal witnesses, services in Docket No. 2006–1 CRB DSTRA. Those
the parties informed the Judges that they 1 Section 383.4(a) states that the terms governing terms will appear in Subpart B of 37 CFR part 382,
had ‘‘reached full agreement on all the activities of a new subscription service under which will be published in a separate document.

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Federal Register / Vol. 72, No. 244 / Thursday, December 20, 2007 / Rules and Regulations 72255

designated collection and distribution (vi) Monies or other consideration per-day basis, ‘‘Subscribers’’ shall be
organization is due. recognizable as revenue by Licensee calculated based on the average of the
(b) Bundled Contracts means from Licensee’s Providers, but not number of subscribers on the last day of
contracts between the Licensee and a including revenues recognizable by the preceding month and the last day of
Provider in which the Service is not the Licensee’s Providers from others and the applicable month, unless the Service
only content licensed by the Licensee to not accounted for by Licensee’s is paid by the Provider based on end-of-
the Provider. Providers to Licensee, for the provision month numbers, in which event
(c) Copyright Owner is a sound of hardware for the Service by anyone ‘‘Subscribers’’ shall be counted based on
recording copyright owner who is and used in connection with the end-of-month data.
entitled to receive royalty payments Service; (j) Stand-Alone Contracts means
under 17 U.S.C. 112(e) or 114(g). (vii) Monies or other consideration contracts between the Licensee and a
(d) License Period means the period recognizable as revenue for any Provider in which the only content
commencing from the inception of the references to or inclusion of any product licensed to the Provider is the Service.
Licensees’ Services and continuing or service on the Service; and
through December 31, 2010. (viii) Bad debts recovered regarding § 383.3 Royalty fees for public
(e) Licensee is a person that has paragraphs (g)(1)(i) through (vii) of this performances of sound recordings and the
obtained statutory licenses under 17 section. making of ephemeral recordings.
U.S.C. 112 and 114, and the (2) ‘‘Revenue’’ shall include such (a) Royalty rates. Royalty rates for the
implementing regulations, to make payments as set forth in paragraphs public performance of sound recordings
digital audio transmissions as part of a (g)(1)(i) through (viii) of this section to by eligible digital transmissions made
Service (as defined in paragraph (h) of which Licensee is entitled but which are over a Service pursuant to 17 U.S.C.
this section), and ephemeral recordings paid or payable to a parent, subsidiary, 114, and for ephemeral recordings of
for use in facilitating such division, or affiliate of Licensee, in lieu sound recordings made pursuant to 17
transmissions. of payment to Licensee but not U.S.C. 112 to facilitate such
(f) Provider means a ‘‘multichannel including payments to Licensee’s transmissions, are as follows. Each
video programming distributor’’ as that Providers for the Service. Licensee shall Licensee will pay, with respect to
term is defined in 47 CFR 76.1000(e); be allowed a deduction from ‘‘Revenue’’ content covered by the License that is
notwithstanding such definition, for as defined in paragraph (g)(1) of this provided via the Service of each such
purposes of this part, a Provider shall section for bad debts actually written off Licensee:
include only a distributor of during the reporting period. (1) For Stand-Alone Contracts, the
programming to televisions, such as a (h) A Service is a non-interactive greater of:
cable or satellite television provider. (consistent with the definition of (i) 15% of Revenue, or
(g) Revenue. (1) ‘‘Revenue’’ means all ‘‘interactive service’’ in 17 U.S.C. (ii) The following monthly minimum
monies and other considerations, paid 114(j)(7)) audio-only subscription payment per Subscriber to the Service of
or payable, recognizable during the service (including accompanying such Licensee—
Applicable Period as revenue by the information and graphics related to the
audio) that is transmitted to residential (A) From inception through 2006:
Licensee consistent with Generally
subscribers of a television service $0.0075
Accepted Accounting Principles
(‘‘GAAP’’) and the Licensee’s past through a Provider which is marketed as (B) 2007: $0.0075
practices, which is derived by the and is in fact primarily a video service (C) 2008: $0.0075
Licensee from the operation of the where (D) 2009: $0.0125
Service and shall be comprised of the (1) Subscribers do not pay a separate (E) 2010: $0.0150 and
following: fee for audio channels. (2) For Bundled Contracts, the greater
(i) Revenues recognizable by Licensee (2) The audio channels are delivered of:
from Licensee’s Providers and directly by digital audio transmissions through a (i) 15% of Revenue allocated to reflect
from residential U.S. subscribers for technology that is incapable of tracking the objective value of the Licensee’s
Licensee’s Service; the individual sound recordings Service, or
(ii) Licensee’s advertising revenues received by any particular consumer. (ii) The following monthly minimum
recognizable from the Service (as (3) However, paragraph (h)(2) of this payment per Subscriber to the Service of
billed), or other monies received from section shall not apply to the Licensee’s such Licensee:
sponsors of the Service if any, less current contracts with Providers that are
(A) From inception through 2006:
advertising agency commissions not to in effect as of the effective date of this
$0.0220
exceed 15% of those fees incurred to a part if such Providers become capable in
the future of tracking the individual (B) 2007: $0.0220
recognized advertising agency not
sound recordings received by any (C) 2008: $0.0220
owned or controlled by Licensee;
(iii) Revenues recognizable for the particular consumer, provided that the (D) 2009: $0.0220
provision of time on the Service to any audio channels continued to be (E) 2010: $0.0250
third party; delivered to Subscribers by digital audio (b) Minimum fee. Each Licensee will
(iv) Revenues recognizable from the transmissions and the Licensee remains pay an annual, non-refundable
sale of time to Providers of paid incapable of tracking the individual minimum fee of one hundred thousand
programming, such as infomercials, on sound recordings received by any dollars ($100,000), payable on January
the Service; particular consumer. 31 of each calendar year in which the
(v) Where merchandise, service, or (i) Subscriber means every residential Service is provided pursuant to the
anything of value is receivable by subscriber to the underlying service of section 112 and 114 statutory licenses,
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Licensee in lieu of cash consideration the Provider who receives Licensee’s but payable pursuant to the applicable
for the use of Licensee’s Service, the fair Service in the United States for all or regulations for all years 2007 and
market value thereof or Licensee’s any part of a month; provided, however, earlier. Such fee shall be recoupable and
prevailing published rate, whichever is that for any Licensee that is not able to credited against royalties due in the
less; track the number of subscribers on a calendar year in which it is paid.

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72256 Federal Register / Vol. 72, No. 244 / Thursday, December 20, 2007 / Rules and Regulations

§ 383.4 Terms for making payment of ENVIRONMENTAL PROTECTION West Jackson Boulevard, Chicago,
royalty fees. AGENCY Illinois 60604. This Facility is open
(a) Subject to the provisions of this from 8:30 a.m. to 4:30 p.m., Monday
40 CFR Parts 52 and 97 through Friday, excluding legal
section, terms governing timing and due
dates of royalty payments, late fees, holidays. We recommend that you
[EPA–R05–OAR–2007–0519; FRL–8508–1]
telephone Douglas Aburano,
statements of account, audit and
Approval of Implementation Plans of Environmental Engineer, at (312) 353–
verification of royalty payments and
Michigan: Clean Air Interstate Rule 6960, before visiting the Region 5 office.
distributions, cost of audit and
FOR FURTHER INFORMATION CONTACT:
verification, record retention AGENCY: Environmental Protection Douglas Aburano, Environmental
requirements, treatment of Licensees’ Agency (EPA). Engineer, Criteria Pollutant Section, Air
confidential information, distribution of ACTION: Final rule. Programs Branch (AR–18J),
royalties, unclaimed funds, designation Environmental Protection Agency,
and definition of the collection and SUMMARY: EPA is conditionally Region 5, 77 West Jackson Boulevard,
distribution organization, and any approving a revision to the Michigan Chicago, Illinois 60604, (312) 353–6960,
definitions for applicable terms not State Implementation Plan (SIP) aburano.douglas@epa.gov.
defined herein and not otherwise submitted on July 16, 2007. This
SUPPLEMENTARY INFORMATION:
inapplicable shall be those adopted by revision incorporates provisions related
the Copyright Royalty Judges for to the implementation of EPA’s Clean Table of Contents
subscription transmissions and the Air Interstate Rule (CAIR), promulgated I. What Action Is EPA Taking?
reproduction of ephemeral recordings on May 12, 2005, and subsequently II. Did Anyone Comment on the Proposed
revised on April 28, 2006, and Conditional Approval?
by preexisting satellite digital audio
December 13, 2006, and the CAIR III. What Are the General Requirements of
radio services in Docket No. 2006–1 CAIR and the CAIR FIP?
CRB DSTRA (‘‘the SDARS Proceeding’’). Federal Implementation Plan (CAIR FIP)
IV. Analysis of Michigan’s CAIR SIP
concerning sulfur dioxide (SO2),
(b) Without prejudice to any Submittal
nitrogen oxides (NOX) annual, and NOX A. Nature of Michigan’s Submittal
applicable notice and recordkeeping ozone season emissions for the state of B. Summary of Michigan’s Rule
provisions, statements of account shall Michigan, promulgated on April 28, C. State Budgets for Allowance Allocations
not require reports of performances. 2006, and subsequently revised D. CAIR Cap-and-Trade Programs
(c) If the Copyright Royalty Judges December 13, 2006. EPA is not making E. Applicability Provisions for Non–EGU
adopt reports of use regulations in the any changes to the CAIR FIP, but is, to NOX SIP Call Sources
the extent EPA approves Michigan’s SIP F. NOX Allowance Allocations
SDARS Proceeding, those regulations, if
revision, amending the appropriate G. Allocation of NOX Allowances from the
any, shall govern Licensees’ obligations Compliance Supplement Pool
to report sound recordings used appendices in the CAIR FIP trading
H. Individual Opt-in Units
pursuant to this part, except that rules simply to note that approval. I. Conditions for Approval
Licensees also shall report to The SIP revision that EPA is V. Final Action
SoundExchange which channels are conditionally approving is an VI. When Is This Action Effective?
transmitted by their respective abbreviated SIP revision that addresses: VII. Statutory and Executive Order Reviews
The applicability provisions for the NOX
Providers for all past, current and future I. What Action Is EPA Taking?
ozone season trading program under the
periods. In the event that the Copyright
CAIR FIP and supporting definitions of CAIR SIP Approval
Royalty Judges do not adopt reports of terms; the methodology to be used to
use regulations in the SDARS EPA is conditionally approving a
allocate NOX annual and ozone season revision to Michigan’s SIP, submitted on
Proceeding, then reports of use provided NOX allowances under the CAIR FIP
by XM Satellite Radio, Inc. (‘‘XM’’) and July 16, 2007, that would modify the
and supporting definitions of terms; and application of certain provisions of the
Sirius Satellite Radio, Inc. (‘‘Sirius’’) for provisions for opt-in units under the
their use of sound recordings on their CAIR FIP concerning NOX annual and
CAIR FIP. Michigan will be submitting NOX ozone season emissions. (As
preexisting satellite digital audio radio additional SO2 rules in the future.
services (as defined in 17 U.S.C. discussed below, this less
DATES: This rule is effective December comprehensive CAIR SIP is termed an
114(j)(10)) shall be deemed to satisfy 20, 2007. abbreviated SIP.) EPA proposed to
XM’s and Sirius’ obligations to report
ADDRESSES: EPA has established a conditionally approve Michigan’s
sound recordings used pursuant to this docket for this action under Docket ID submittal on September 12, 2007 (72 FR
part, and MTV Networks shall provide No. EPA–R05–OAR–2007–0519. All 52038). The CAIR SO2 FIP will remain
census reporting, retroactive to the documents in the electronic docket are in place unaffected. Michigan is subject
inception of its Service. listed in the www.regulations.gov index. to the CAIR FIP that implements the
Dated: December 14, 2007. Although listed in the index, some CAIR requirements by requiring certain
James Scott Sledge, information is not publicly available, electric generating units (EGUs) to
Chief Copyright Royalty Judge.
i.e., CBI or other information whose participate in the EPA-administered
disclosure is restricted by statute. federal CAIR SO2, NOX annual, and
[FR Doc. E7–24734 Filed 12–19–07; 8:45 am]
Certain other material, such as NOX ozone season cap-and-trade
BILLING CODE 1410–72–P copyrighted material, is not placed on programs. The SIP revision provides a
the Internet and will be publicly methodology for allocating NOX
available only in hard copy form. allowances for the NOX annual and NOX
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Publicly available docket materials are ozone season trading programs. The
available either electronically in CAIR FIP provides that this
www.regulations.gov or in hard copy at methodology will be used to allocate
the Environmental Protection Agency, NOX allowances to sources in Michigan,
Region 5, Air and Radiation Division, 77 instead of the federal allocation

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