Federal Government Participation in the Automated Clearing House

CourtFiscal Service
Citation87 FR 42
Record Number2021-28048
Publication Date03 January 2022
42
Federal Register / Vol. 87, No. 1 / Monday, January 3, 2022 / Rules and Regulations
(D) Interim Revisions, 2012,
(E) Interim Revisions, 2014,
(F) Interim Revisions, 2015, and
(G) Interim Revisions, 2018.
(vii) [Reserved]
(viii) AASHTO LTS–6, Standard
Specifications for Structural Supports
for Highway Signs, Luminaires, and
Traffic Signals, 6th Edition, copyright
2013, with:
(A) AASHTO LTS–6–I1, 2015 Interim
Revisions to Standard Specifications for
Structural Supports for Highway Signs,
Luminaires, and Traffic Signals,
copyright 2014,
(B) AASHTO LTS–6–I2–OL, 2019
Interim Revisions to Standard
Specifications for Structural Supports
for Highway Signs, Luminaires, and
Traffic Signals, copyright 2018, and
(C) AASHTO LTS–6–I3, 2020 Interim
Revisions to Standard Specifications for
Structural Supports for Highway Signs,
Luminaires, and Traffic Signals,
copyright 2019.
(ix) AASHTO LRFDLTS–1, LRFD
Specifications for Structural Supports
for Highway Signs, Luminaires, and
Traffic Signals, 1st Edition, copyright
2015, with:
(A) AASHTO LRFDLTS–1–I1–OL,
2017 Interim Revisions to LRFD
Specifications for Structural Supports
for Highway Signs, Luminaires, and
Traffic Signals, copyright 2016,
(B) AASHTO LRFDLTS–1–I2–OL,
2018 Interim Revisions to LRFD
Specifications for Structural Supports
for Highway Signs, Luminaires, and
Traffic Signals, copyright 2017,
(C) AASHTO LRFDLTS–1–I3–OL,
2019 Interim Revisions to LRFD
Specifications for Structural Supports
for Highway Signs, Luminaires, and
Traffic Signals, copyright 2018, and
(D) AASHTO LRFDLTS–1–I4, 2020
Interim Revisions to LRFD
Specifications for Structural Supports
for Highway Signs, Luminaires, and
Traffic Signals, copyright 2019.
(2) American Welding Society (AWS),
8669 NW 36 Street, #130 Miami, FL
33166–6672; www.aws.org; or (800)
443–9353 or (305) 443–9353.
(i) AWS D1.1/D1.1M:2015 Structural
Welding Code—Steel, 23rd Edition,
copyright 2015, including Errata March
2016 (second printing).
(ii) AWS D1.4/D1.4M:2011 Structural
Welding Code –Reinforcing Steel, 2011.
(iii) AASHTO/AWS D1.5M/D1.5:
2015–AMD1, Bridge Welding Code, 7th
Edition, Amendment: December 12,
2016.
(e) Additional design resources. ***
[FR Doc. 2021–28236 Filed 12–30–21; 8:45 am]
BILLING CODE 4910–22–P
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 210
Docket No. FISCAL–2021–0002
RIN 1530–AA26
Federal Government Participation in
the Automated Clearing House
AGENCY
: Fiscal Service, Bureau of the
Fiscal Service, Treasury.
ACTION
: Final rule.
SUMMARY
: The Department of the
Treasury, Bureau of the Fiscal Service
(Fiscal Service) is adopting the changes
we proposed in an August 2021 notice
of proposed rulemaking for our
regulation governing the use of the
Automated Clearing House (ACH)
Network. Consistent with past practice,
our regulation adopts, with some
exceptions, the Nacha Operating Rules
& Operating Guidelines (Operating
Rules & Guidelines) developed and
published by Nacha as the rules
governing the use of the ACH Network
by Federal agencies. We are issuing this
final rule to address changes that Nacha
has made since its publication of the
2019 Operating Rules & Guidelines.
These changes include amendments set
forth in the 2020 and 2021 Operating
Rules & Guidelines, including
supplement #1–2021.
DATES
: Effective February 2, 2022. The
incorporation by reference of certain
publications listed in the rule is
approved by the Director of the Federal
Register as of February 2, 2022.
ADDRESSES
: You can download this final
rule at the following website:
fiscal.treasury.gov/ach/.
FOR FURTHER INFORMATION CONTACT
: Ian
Macoy, Director of Settlement Services,
at (202) 874–6835 or ian.macoy@
fiscal.treasury.gov; or Frank J. Supik,
Senior Counsel, at frank.supik@
fiscal.treasury.gov.
SUPPLEMENTARY INFORMATION
:
I. Background
On August 18, 2021, the Fiscal
Service published a Notice of Proposed
Rulemaking at 86 FR 46631 that
proposed amendments to title 31 CFR
part 210 (part 210). Part 210 governs the
use of the ACH Network by Federal
agencies.
The ACH Network is a nationwide
electronic fund transfer system that
provides for the inter-bank clearing of
electronic credit and debit transactions
and for the exchange of payment-related
information among participating
financial institutions.
The ACH Network facilitates payment
transactions between several
participants. These participants include
the:
Originator: A company or
individual that agrees to initiate an ACH
entry according to an arrangement with
a Receiver.
Originating Depository Financial
Institution (ODFI): An institution that
receives the payment instruction from
the Originator and forwards the ACH
entry to the ACH Operator.
ACH Operator: A central clearing
facility that receives entries from ODFIs,
distributes the entries to appropriate
Receiving Depository Financial
Institutions, and performs settlement
functions for the financial institutions.
Receiving Depository Financial
Institution (RDFI): An institution that
receives entries from the ACH Operator
and posts them to the account of its
depositors (Receivers).
Receiver: An organization or
consumer that has authorized an
Originator to initiate an ACH entry to
the Receiver’s account with the RDFI.
Third-Party Service Provider: An
entity other than the Originator, ODFI,
or RDFI that performs any functions on
behalf of the Originator, ODFI, or RDFI
in connection with processing ACH
entries. These functions may include,
for example, creating ACH files on
behalf of an Originator or ODFI, or
acting as a sending point or receiving
point on behalf of an ODFI or RDFI.
Rights and obligations among
participants in the ACH Network are
generally governed by Nacha’s
Operating Rules & Guidelines. The
Operating Rules & Guidelines establish
standards for sending and receiving
ACH entries, provide specifications and
formatting requirements for the
electronic transmission of transaction
information, set forth the rights and
obligations of the entities listed above
when transmitting, receiving, or
returning ACH entries, and cover other
related matters. The Operating Rules &
Guidelines also provide guidance
regarding best practices to ACH
Network participants. There is an
industry consensus that the Operating
Rules & Guidelines provide a uniform
set of standards for ACH transactions
and that these standards enable efficient
transaction processing.
Part 210 incorporates the Operating
Rules & Guidelines by reference, with
certain exceptions. The Operating Rules
& Guidelines govern the use of the ACH
Network by financial institutions and
other parties but must be incorporated
by reference in part 210 to apply to the
Federal Government’s use of the ACH
Network. From time to time, the Fiscal
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1
This rule change was published in Supplement
#1–2021 to the Nacha Operating Rules.
2
The 2021 Operating Rules & Guidelines
implements a second phase of this rule. This
second phase is discussed below.
3
Some transaction errors, such as errors due to
the failure to provide certain notices or the failure
to use an acceptable ‘‘source document,’’ cannot be
corrected. In those cases, the Originator will be
required to submit a new ACH entry.
4
See 85 FR 15715 (Mar. 19, 2020).
5
Id.
Service amends part 210 to address
changes that Nacha periodically makes
to the Operating Rules & Guidelines or
to revise the regulation as otherwise
appropriate. The Federal Government
generally adopts changes to the
Operating Rules & Guidelines unless the
changes address enforcement and
compliance of the Operating Rules &
Guidelines, would adversely impact
government operations, or are irrelevant
to Federal agency participation in the
ACH Network.
Currently, part 210 incorporates the
2019 Operating Rules & Guidelines,
subject to certain exceptions. Nacha has
adopted several changes since the
publication of the 2019 Operating Rules
& Guidelines, as reflected in the 2021
Operating Rules & Guidelines and
supplements thereto. The Fiscal Service
is adopting most of these changes,
consistent with the amendments
proposed in the NPRM.
II. Public Comment and Fiscal Service
Response
The Fiscal Service sought public
comment on the proposed rule to assist
the agency in giving full consideration
to the matters discussed in the NPRM.
We received one substantive comment,
which was submitted by Nacha and co-
signed by nine Payments Association
members (Nacha Comment Letter).
The Nacha Comment Letter expressed
support for the Fiscal Service’s proposal
to adopt the majority of the Operating
Rules & Guidelines. The Nacha
Comment Letter expressed particular
support for the Fiscal Service’s adoption
of the revised Same Day ACH
transaction dollar limit. In light of the
NPRM’s proposal to not adopt the
Nacha Operating Rules & Guidelines’
contact registry provisions, the Nacha
Comment Letter suggested that the
Fiscal Service consider alternative
means of providing contact information
to industry participants. The transaction
dollar limit and contact registry are
discussed below.
In addition, the Nacha Comment
Letter suggested that the Fiscal Service
explore methods of adopting changes to
the Nacha Operating Rules &
Guidelines. The Fiscal Service will
consider alternatives, but the
procedures for incorporating the Nacha
Operating Rules & Guidelines into the
Code of Federal Regulations by
reference are established by the Office of
the Federal Register. These rules
require, among other steps, that the
Fiscal Service conduct a rulemaking
procedure.
III. Summary of Final Rule
During the last amendment to part
210, the Fiscal Service adopted, with
some exceptions, Nacha’s 2019
Operating Rules & Guidelines.
Subsequently, Nacha published two
versions of the Operating Rules &
Guidelines, the 2020 Operating Rules &
Guidelines and the 2021 Operating
Rules & Guidelines. The relevant 2020
changes are included in the 2021
version that we are incorporating by
reference. Below, we outline the major
changes that were published in these
updates.
A. 2020 Operating Rules & Guidelines
Changes
The 2020 Operating Rules &
Guidelines made several changes to the
Operating Rules and Guidelines. These
changes included raising the Same Day
ACH dollar limit, differentiating the
codes associated with certain return
transactions, modifying data security
requirements, clarifying fraud detection
standards for WEB Debit transactions,
and adding a new Same Day ACH
processing window.
Same Day ACH per Transaction Dollar
Limit Increase
Nacha approved a rule change to
update the Same Day ACH per
transaction dollar limit from $100,000 to
$1,000,000.
1
At implementation, both
Same Day ACH credits and Same Day
ACH debits will be eligible for Same
Day ACH processing up to $1,000,000
per transaction.
We are adopting this rule, effective
March 18, 2022. Acceptance of this rule
will enable individuals and entities to
make Same-Day ACH payments of up to
$1,000,000 to the Federal Government
and will enable Federal disbursements
up to the same amount.
Differentiating Unauthorized Return
Codes
The 2020 Operating Rules &
Guidelines changed the usage of certain
Nacha ‘‘Return Reason Codes,’’ which
afforded financial institutions more
insight into the reason why a
transaction was returned.
Under the prior rules, Nacha used one
Return Reason Code (the R10 code) as
a catch-all to identify transactions that
were returned for several underlying
return reasons, including some for
which a valid authorization existed.
Under the revised Rule, Nacha re-
purposed another Return Reason Code
(the R11 code) to allow ACH network
participants to more readily identify
ACH transactions that are being
returned due to an error, even though an
authorization exists for the transaction
(e.g., if the authorization is for a
different amount and/or date). The
newly re-purposed code is used only to
identify the return of a debit transaction
in which there is an error, but for which
there is an authorization.
2
The Operating Rules & Guidelines
will treat returned transactions using
either code (R10 and R11) as
unauthorized. However, an Originator
will be permitted to correct the
underlying error in an R11 return (if
possible). Subject to certain other
requirements, the Originator may be
able to resubmit the underlying ACH
transaction without obtaining a new
authorization.
3
We are adopting this change. Doing so
will allow the Fiscal Service to remain
consistent with industry practice,
allowing for consistent operation across
the ACH network. Moreover, using the
R11 return code will provide greater
insight into the reasons for the return of
certain transactions.
Supplemental Fraud Detection
Standards for WEB Debits
The Fiscal Service previously adopted
Nacha’s updated fraud detection
standards for WEB debit transactions.
4
The Fiscal Service adopted this change
with a delayed effective date of March
22, 2022.
5
The updated rule clarifies
that Nacha requirements for a
‘‘commercially reasonable fraudulent
transaction detection system’’ include
the use of account validation services
for WEB debit transactions. We are
adopting the updated rule, which may
help reduce ACH return transactions
and the incidence of fraudulent
transactions affecting the Federal
Government.
B. 2021 Operating Rules & Guidelines
Changes
The 2021 Operating Rules &
Guidelines implemented several
additional changes beyond those in the
2020 Operating Rules & Guidelines.
These changes included, but are not
limited to, clarifying certain portions of
the enforcement provisions of the
Operating Rules & Guidelines,
implementing a new Same Day ACH
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6
See 85 FR 15715 (Mar. 19, 2020).
processing window, implementing a
second phase of Nacha’s return code
rule, establishing a time limit on certain
warranty claims, and implementing
Nacha’s contact registry. As explained
in more detail below, we are not
adopting the amendments to the
enforcement and contact registry
provisions but are adopting the
remaining changes.
Enforcement
The 2021 Operating Rules &
Guidelines defines an ‘‘egregious
violation’’ within the context of rules
enforcement.
We are not adopting this amendment.
Under 31 CFR 210.2(d), the enforcement
provisions of the Operating Rules &
Guidelines are inapplicable to Federal
agencies.
Differentiating Unauthorized Return
Reasons
As discussed above, Nacha
repurposed the R11 Return Reason code
to further differentiate between certain
returned debit ACH transactions. The
2021 Operating Rules & Guidelines
implemented a second phase of this rule
change, which will apply Nacha’s
existing Unauthorized Entry Fee to ACH
debit entries that are returned with the
newly repurposed code. These
transactions are associated with an
authorization of a debit transaction
when there is an error or defect in the
payment such that the entry does not
conform to the terms of the
authorization.
The Fiscal Service is adopting this
rule change. Adopting this change
maintains consistency with other ACH
Network participants and creates
additional incentives to minimize the
amount of unauthorized (or incorrectly
authorized) ACH transactions.
Limitation on Warranty Claims
Nacha’s 2021 Operating Rules &
Guidelines impose time limits on an
RDFI’s ability to make a claim against an
ODFI’s authorization warranty.
The Operating Rules & Guidelines
require an ODFI to warrant that an ACH
entry has been properly authorized by
the Receiver. Under the prior rules,
there was no time limit on the ODFI’s
warranties. Instead, these limits were
determined by state statutes of
limitations, which may vary.
The change sets forth different time
periods, depending upon whether the
transaction affects consumer and non-
consumer accounts. This rule allows an
RDFI to make a claim for one year from
the settlement date of an entry to a non-
consumer account. In the case of an
entry to a consumer account, the RDFI
may make a claim for two years from the
entry’s Settlement Date. In addition, the
RDFI can make a claim for entries
settling within 95 calendar days from
the Settlement Date of the first
unauthorized debit to a consumer
account.
The Fiscal Service is adopting this
rule change.
Supplementing Data Security
Requirements
Nacha previously expanded its Data
Security Requirements rule, which the
Fiscal Service adopted,
6
but in the 2021
Operating Rules & Guidelines Nacha
updated the effective date and expanded
the existing ACH Security Framework to
explicitly require large, non-financial
institution Originators, Third-Party
Service Providers, and Third-Party
Senders to protect account numbers
used in the initiation of ACH entries by
rendering them unreadable when stored
electronically.
The Fiscal Service is adopting the
updated rule, which will expand
existing security requirements and
protect information associated with
ACH transactions.
ACH Contact Registry
In 2019, Nacha approved a rule
creating an ACH contact registry. Under
this rule, all ACH financial institutions
are required to register contact
information for their ACH operations
and fraud and/or risk management
areas. Financial institutions may
voluntarily register contacts for
additional personnel or departments at
their discretion. The contact
information is available to other
registered ACH participating financial
institutions, payments associations,
ACH Operators, and Nacha to use in the
event of ACH-related system outages,
erroneous payments, duplicates,
reversals, fraudulent payments and any
other use within scope, such as
identifying the proper contact for letters
of indemnity. The contact information
includes Routing and Transit Numbers
(RTNs).
Nacha is implementing the ACH
Contact Registry rule in two phases.
Phase 1 became effective on July 1,
2020, the date on which the registration
portal was opened for ‘‘Participating
Depository Financial Institutions’’ to
begin to submit and query contact
information. Under Phase 2, Nacha’s
enforcement authority for the Rule
becomes effective.
We are not adopting this amendment.
Although participation in the registry
can be expected to provide some
benefits to the industry, all Federal
Government RTNs are controlled by
Treasury through the Fiscal Service. The
Fiscal Service prohibits debit
origination to all Treasury-controlled
ACH RTNs. To mitigate the risk of
inappropriate use of any Treasury RTNs,
the Fiscal Service prohibits their
publication. Moreover, under 31 CFR
210.2(d), the enforcement provisions of
the Operating Rules & Guidelines are
inapplicable to Federal agencies. The
Fiscal Service appreciates Nacha’s
suggestion that the Federal Government
consider alternative methods of making
appropriate contact information
available to financial institutions and
may do so in the future.
Reversals
The 2021 Operating Rules &
Guidelines also clarify the proper
circumstances under which an ACH
entry may be reversed. The amendments
to the Operating Rules & Guidelines
specifically state that the initiation of
reversing entries or files for any reason
other than those explicitly permissible
under the Operating Rules & Guidelines
is prohibited and define non-exclusive
examples of circumstances in which the
origination of reversals is improper.
The reversals rule also establishes
additional formatting requirements for
reversals; limits the ability to modify the
contents of other fields in a reversing
entry to allow changes only to the extent
necessary to facilitate proper processing
of the reversal; explicitly permits an
RDFI to return an improper reversal;
and expands the permissible reasons for
a Reversing Entry to include an error in
the effective entry date.
The Fiscal Service is adopting this
rule, which will clarify the
circumstances under which entries can
be reversed and assist in the efficient
processing of ACH transactions
involving the Federal Government.
Meaningful Modernization
The 2021 Operating Rules &
Guidelines also contain five
amendments that Nacha characterizes as
‘‘Meaningful Modernization.’’ These
five amendments are designed to
improve and simplify the ACH user
experience by facilitating the adoption
of new technologies and channels for
the authorization and initiation of ACH
payments; reducing barriers to the use
of the ACH Network; providing clarity
and increasing consistency around
certain ACH authorization processes;
and reducing certain administrative
burdens related to ACH authorizations.
Specifically, the five rules:
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Federal Register / Vol. 87, No. 1 / Monday, January 3, 2022 / Rules and Regulations
Explicitly define the use of standing
authorizations for consumer ACH
debits;
Define and allow for oral
authorization of consumer ACH debits
beyond telephone calls;
Clarify and provide greater
consistency of ACH authorization
standards across payment initiation
channels;
Reduce the administrative burden
of providing proof of authorization; and
Better facilitate the use of electronic
and oral Written Statements of
Unauthorized Debit.
Standing Authorizations
The current authorization framework
for consumer ACH debits encompasses
recurring and single payments. A single
entry is a one-time payment and can be
between parties that have no previous
relationship. ACH Originators that have,
or want to use, a different model for
ongoing commerce do not have specific
rules for payments that are a hybrid,
falling somewhere in between recurring
and single entries.
This rule change defines a ‘‘Standing
Authorization’’ as an advance
authorization by a consumer of future
debits at various intervals. The
consumer would initiate the future
debits by additional actions, which
differs from the requirements for
recurring ACH transactions. The rule
allows the use of different Standard
Entry Class codes. By allowing standing
authorizations, Nacha will fill the gap
between single and recurring payments
and enable businesses and consumers to
make more flexible payment
arrangements for relationships that are
ongoing in nature.
The Fiscal Service is adopting this
rule. The Fiscal Service believes that the
Standing Authorization rule may
increase options for initiating ACH
transactions with the Federal
Government. As a result, agencies may
be able to adopt new payment processes
that better fit their needs and the needs
of their customers.
Oral Authorizations
The Oral Authorizations rule defines
and allows ‘‘Oral Authorizations’’ as a
valid authorization method for
consumer debits distinct from a
telephone call.
Under the rule, any Oral
Authorization obtained via any channel
needs to meet defined requirements An
Oral Authorization obtained over the
internet that is not a telephone call also
needs to meet the risk and security
requirements that currently apply to
Internet-Initiated/Mobile (WEB) ACH
entries. The rule will allow for Standing
Authorizations to be obtained orally. In
addition, the rule will allow for
subsequent entries initiated under a
Standing Authorization to be initiated
through voice commands, instructions,
or affirmations.
The Fiscal Service is adopting this
amendment. The Fiscal Service believes
that the Oral Authorization rule may
increase options for initiating efficient
ACH transactions with the Federal
Government.
Other Authorization Issues
The 2021 Operating Rules &
Guidelines also include rule changes
grouped as ‘‘Other Authorization
Issues,’’ which cover other
modifications and re-organizations of
the general authorization rules for
clarity, flexibility, and consistency.
The rule re-organizes the general
authorization rules to better incorporate
Standing Authorizations, Oral
Authorizations, and other changes. In
addition, the amended rule explicitly
states that authorization of any credit
entry to a consumer account and any
entry to a non-consumer account can be
by any method allowed by law or
regulation. Only consumer debit
authorizations require a writing that is
signed or similarly authenticated. The
amended rule also requires all
authorizations to meet the standards of
‘‘readily identifiable’’ and ‘‘clear and
readily understandable terms,’’ which
aim to reduce the incidence of
erroneous transactions. Finally, the rule
applies the ‘‘minimum data element’’
standards that currently are only stated
in the rules for Telephone-Initiated
Entries to all consumer debit
authorizations.
The Fiscal Service is adopting these
amendments, which will benefit the
Federal Government and those who
participate in ACH transactions with it.
Alternative to Proof of Authorization
The 2021 Operating Rules &
Guidelines provide an ODFI and
Originator the option of accepting a
return of a transaction in lieu of
providing a copy of an authorization.
Previously, an Originator was required
to provide proof of authorization to its
ODFI in such time that the ODFI can
respond to an RDFI’s request for proof
of an authorization within ten banking
days.
This change reduces an
administrative burden on ODFIs and
their Originators by allowing them to
choose their method of response. The
rule is intended to help reduce the costs
and time needed to resolve some
exceptions in which proof of
authorization is requested. However, if
the RDFI still needs proof of
authorization, the ODFI and its
Originator must provide it within ten
days of the RDFI’s subsequent request.
The Fiscal Service is adopting these
amendments. The Fiscal Service agrees
that these rule amendments may make
certain ACH transaction processes more
efficient. If the Federal Government
determines that it is inefficient to
provide the requested proof of
authorization, the new rule will allow it
to return the ACH instead of expending
resources to locate and transmit the
information to the RDFI and Receiver.
Written Statement of Unauthorized
Debit via Electronic or Oral Methods
The 2021 Operating Rules &
Guidelines change the ‘‘Written
Statement of Unauthorized Debit’’ rule,
which makes an RDFI responsible for
obtaining a consumer’s Written
Statement of Unauthorized Debit
(WSUD) prior to returning a debit as
unauthorized. This change allows for
electronic or oral acceptance of WSUDs.
The rule reduces an administrative
burden on RDFIs and their customers.
The changes emphasize that WSUDs
may be obtained and signed
electronically, which could include the
same methods permissible for obtaining
a consumer debit authorization.
The Fiscal Service is adopting these
amendments, which may increase the
efficiency of ACH transactions involving
the Federal Government by allowing
electronic records and signatures to be
used for WSUDs, expediting the
processing of allegedly fraudulent
electronic transactions involving the
Federal Government and other parties.
Minor Rules Topics
Nacha has passed other amendments
that change several areas of the
Operating Rules & Guidelines to address
minor issues or correct errata. These
changes have little-to-no impact on ACH
participants and no material impact on
the Federal Government’s participation
in the ACH network. Nacha’s minor rule
amendments became effective on
various dates, according to the date of
the Nacha errata correction or other
message.
The Fiscal Service is adopting these
minor rule amendments.
III. Section-by-Section Analysis
In order to incorporate in part 210 the
Operating Rules & Guidelines changes
that we are accepting, we are replacing
references to the 2019 Rules &
Guidelines with references to the 2021
Operating Rules & Guidelines.
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210.2(a)
We are amending the reference to
NACHA—The Electronic Payments
Association (NACHA) to simply refer to
Nacha.
§ 210.2(d)
We are amending the definition of
‘‘applicable ACH Rules’’ at § 210.2(d) by
replacing the reference to the ‘‘2019
NACHA Operating Rules and
Guidelines’’ with a reference to the
‘‘2021 Nacha Operating Rules &
Guidelines’’ and Supplement #1–2021.
In particular, Supplement #1–2021 will
increase the Same Day ACH limit to $1
million, effective March 18, 2022. In
addition, we are expanding the list of
Operating Rules & Guidelines that are
not incorporated by reference to include
the Operating Rules & Guidelines
governing the Participating DFI registry.
§ 210.3(b)
We are amending § 210.3(b) by
replacing the references to the ‘‘2019
NACHA Operating Rules & Guidelines’’
with references to ‘‘Nacha’s 2021
Operating Rules & Guidelines,’’
including Supplement #1–2021.
§ 210.6
We are amending § 210.6(g) by
replacing the reference to the ‘‘2019
NACHA Operating Rules and
Guidelines’’ with a reference to the
‘‘2021 Nacha Operating Rules &
Guidelines,’’ as amended through March
31, 2021.
IV. Incorporation by Reference
The 2021 Operating Rules &
Guidelines, including Supplement
#1–2021, are incorporated by reference
into part 210 with the approval of the
Director of the Federal Register under 5
U.S.C. 552(a) and 1 CFR part 51. Office
of Federal Register regulations require
that agencies discuss in the preamble of
a final rule ways that the materials the
agency proposes to incorporate by
reference are reasonably available to
interested parties or how it worked to
make those materials reasonably
available to interested parties. In
addition, the preamble of the final rule
must summarize the material. 1 CFR
51.5(a). In accordance with the Office of
the Federal Register’s requirements,
Supplementary Information section I
summarizes the Operating Rules &
Guidelines and section III summarizes
the invidual provisions being adopted.
Financial institutions utilizing the ACH
Network are bound by the Operating
Rules & Guidelines and have access to
them in the course of their everyday
business. The Operating Rules &
Guidelines are available as a bound
book or in online form from Nacha,
2550 Wasser Terrace, Suite 400,
Herndon, Virginia 20171, tel. 703–561–
1100, info@nacha.org.
V. Procedural Analysis
Regulatory Planning and Review
The final rule does not meet the
criteria for a ‘‘significant regulatory
action’’ as defined in Executive Order
12866. Therefore, the regulatory review
procedures contained therein do not
apply.
Regulatory Flexibility Act Analysis
It is hereby certified that the final rule
will not have a significant economic
impact on a substantial number of small
entities. The final rule imposes on the
Federal Government a number of
changes that Nacha has already adopted
and imposed on private sector entities
that utilize the ACH Network. The rule
does not impose any additional
burdens, costs or impacts on any private
sector entities, including any small
entities. Accordingly, a regulatory
flexibility analysis under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) is
not required.
Unfunded Mandates Act of 1995
Section 202 of the Unfunded
Mandates Reform Act of 1995, 2 U.S.C.
1532 (Unfunded Mandates Act),
requires that the agency prepare a
budgetary impact statement before
promulgating any rule likely to result in
a Federal mandate that may 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. If a budgetary impact
statement is required, section 205 of the
Unfunded Mandates Act also requires
the agency to identify and consider a
reasonable number of regulatory
alternatives before promulgating the
rule. We have determined that the final
rule will not result in expenditures by
State, local, and tribal governments, in
the aggregate, or by the private sector, of
$100 million or more in any one year.
Accordingly, we have not prepared a
budgetary impact statement or
specifically addressed any regulatory
alternatives.
List of Subjects in 31 CFR Part 210
Automated Clearing House, Electronic
funds transfer, Financial institutions,
Fraud, Incorporation by reference.
Words of Issuance
For the reasons set out in the
preamble, 31 CFR part 210 is amended
as follows:
PART 210—FEDERAL GOVERNMENT
PARTICIPATION IN THE AUTOMATED
CLEARING HOUSE
1. The authority citation for part 210
continues to read as follows:
Authority: 5 U.S.C. 5525; 12 U.S.C. 391;
31 U.S.C. 321, 3301, 3302, 3321, 3332, 3335,
and 3720.
2. In § 210.2:
a. Revise paragraph (a) and paragraph
(d) introductory text;
b. Redesignate paragraphs (d)(2)
through (7) as paragraphs (d)(3) through
(8); and
c. Add new paragraph (d)(2).
The revisions and addition read as
follows:
§ 210.2 Definitions.
* * * * *
(a) ACH Rules means the 2021
Operating Rules & Guidelines, including
Supplement #1–2021, (both
incorporated by reference, see
§ 210.3(b)) published by Nacha, a
national association of regional member
clearing house associations, ACH
Operators, and participating financial
institutions located in the United States.
* * * * *
(d) Applicable ACH Rules means the
ACH Rules, except:
* * * * *
(2) Section 1.14 (governing the
Participating DFI Contact registry);
* * * * *
3. In § 210.3, revise paragraph (b) to
read as follows:
§ 210.3 Governing law.
* * * * *
(b) Incorporation by reference. Certain
material is incorporated by reference
into this part with the approval of the
Director of the Federal Register under 5
U.S.C. 552(a) and 1 CFR part 51. To
enforce any edition other than that
specified in this section, the Bureau of
the Fiscal Service must publish a
document in the Federal Register and
the material must be available to the
public. All approved material is
available for inspection at the Bureau of
the Fiscal Service, 401 14th Street SW,
Room 400A, Washington, DC 20227, ph.
(202) 874–6680 and from the sources
listed below. It is also available for
inspection at the National Archives and
Records Administration (NARA). For
information on the availability of this
material at NARA, email fr.inspection@
nara.gov or go to www.archives.gov/
federal-register/cfr/ibr-locations.html.
(1) Nacha, 2550 Wasser Terrace, Suite
400, Herndon, Virginia 20171, tel. 703–
561–1100, info@nacha.org.
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47
Federal Register / Vol. 87, No. 1 / Monday, January 3, 2022 / Rules and Regulations
(i) 2021 Nacha Operating Rules &
Guidelines: The Guide to the Rules
Governing the ACH Network, copyright
2021; into § 210.2.
(ii) Supplement #1–2021, Notice of
Amendment to the 2021 Nacha
Operating Rules, dated April 8, 2021;
into § 210.2.
(2) [Reserved]
* * * * *
§ 210.6 [Amended]
4. In § 210.6, in paragraph (g), remove
the text ‘‘2019 NACHA Operating Rules
and Guidelines’’ and add in its place the
text ‘‘applicable ACH Rules’’.
David A. Lebryk,
Fiscal Assistant Secretary.
[FR Doc. 2021–28048 Filed 12–30–21; 8:45 am]
BILLING CODE P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 147
[EPA–HQ–OW–2020–0154; FRL–7998–02–
OW]
State of New Mexico Underground
Injection Control Program; Primacy
Revisions
AGENCY
: Environmental Protection
Agency (EPA).
ACTION
: Final rule.
SUMMARY
: The U.S. Environmental
Protection Agency (EPA) is approving
an application from the State of New
Mexico under the Safe Drinking Water
Act (SDWA) to revise the State’s
existing Underground Injection Control
(UIC) program for Class I injection wells
located within the State, except those in
Indian country. New Mexico has revised
the State’s UIC Class I program
regulations to establish new permit
conditions, oversight, and enforcement
to manage hazardous waste injection
activities by petroleum refineries in
such a manner that is protective of
underground sources of drinking water.
The State’s Class I hazardous waste
injection wells are only authorized for
use by petroleum refineries for the
waste generated by the refinery
(‘‘generator’’). With this action, EPA is
also codifying previously approved,
non-substantial changes to the New
Mexico UIC program. New Mexico will
continue to implement and enforce a
State UIC regulatory program that is as
stringent as the existing federal
program.
DATES
: This final rule is effective on
January 3, 2022. The Director of the
Federal Register approved this
incorporation by reference in
accordance with 5 U.S.C. 552(a) and 1
CFR part 51 on January 3, 2022. For
judicial purposes, this final rule is
promulgated as of January 3, 2022.
ADDRESSES
: EPA has established a
docket for this action under Docket ID
No. EPA–HQ–OW–2020–0154. All
documents in the docket are listed on
the http://www.regulations.gov website.
Although listed in the index, some
information is not publicly available,
e.g., Confidential Business Information
(CBI) or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available electronically through http://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT
: Kyle
Carey, Drinking Water Protection
Division, Office of Ground Water and
Drinking Water (4606M), U.S.
Environmental Protection Agency, 1200
Pennsylvania Ave. NW, Washington, DC
20460; telephone number: (202) 564–
2322; fax number: (202) 564–3754;
email address: carey.kyle@epa.gov, or
Evelyn Rosborough, Region VI Library
(6WD), U.S. Environmental Protection
Agency, 1201 Elm Street, Suite 500,
Dallas, Texas 75270; telephone number:
(214) 665–7515; fax: (214) 665–6490;
email address: rosborough.evelyn@
epa.gov.
SUPPLEMENTARY INFORMATION
: This
supplementary information is organized
as follows:
I. Introduction
A. UIC State Primacy
B. New Mexico’s UIC Primacy Program
Revision
C. UIC Class I Wells
D. This Final Rule
II. Legal Authorities
III. State UIC Program Requirements
IV. State of New Mexico’s Application
A. Background
B. Public Participation Activities
Conducted by the State of New Mexico
C. Public Participation Activities
Conducted by EPA
V. Public Comments Received on the
Proposed Rule and EPA’s Response to
Comments
A. Public Comments
B. EPA’s Response
VI. Incorporation by Reference
VII. Effective Date
VIII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act
(UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
G. Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
H. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
I. National Technology Transfer and
Advancement Act
J. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations
K. Congressional Review Act (CRA)
I. Introduction
EPA approved the State of New
Mexico’s UIC program as meeting the
requirements for primary enforcement
responsibility (primacy) for Class I, III,
IV, and V injection wells, under SDWA
Section 1422, on July 11, 1983.
A. UIC State Primacy
To obtain primacy for the UIC
program, EPA conducts a technical and
legal review of a state’s primacy
application. EPA’s review encompasses
a comprehensive evaluation of every
aspect of each of the following elements:
The state’s UIC statutes and regulations,
which must include provisions that are
as stringent as the federal requirements;
documents describing the public
participation process; a request from the
state’s governor for primacy under
SDWA; the program description; an
attorney’s general statement of
enforcement authority; and a
memorandum of agreement between
EPA and the state, describing the
administration, implementation, and
enforcement of the state’s UIC program.
B. New Mexico’s UIC Primacy Program
Revision
The State of New Mexico has revised
its UIC Class I program regulations to
establish new permit conditions,
oversight, and enforcement to manage
Class I hazardous waste disposal wells
by petroleum refineries, except those in
Indian country. EPA considers New
Mexico’s application to be a
‘‘substantial’’ program revision and
therefore subject to the agency’s
approval procedures specified in the
Code of Federal Regulations (CFR) at 40
CFR 145.32(b)(2) and (4).
C. UIC Class I Wells
Class I wells are typically drilled
thousands of feet below the lowermost
underground source of drinking water
as authorized under SDWA. Non-
hazardous waste disposal wells include
municipal wastewater treatment, food
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