Federal Government Participation in the Automated Clearing House

As Enacted ( Federal Register)

Cited authorities 6

Cited in

Published date	03 January 2022
Record Number	2021-28048
Section	Rules and Regulations
Court	Fiscal Service

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,

(B) AASHTO LTS–6–I2–OL, 2019

Interim Revisions to Standard

Specifications for Structural Supports

for Highway Signs, Luminaires, and

Revisions to Standard Specifications for

Structural Supports for Highway Signs,

Luminaires, and Traffic Signals,

(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

(B) AASHTO LRFDLTS–1–I2–OL,

2018 Interim Revisions to LRFD

Specifications for Structural Supports

for Highway Signs, Luminaires, and

2019 Interim Revisions to LRFD

Specifications for Structural Supports

for Highway Signs, Luminaires, and

(D) AASHTO LRFDLTS–1–I4, 2020

Interim Revisions to LRFD

Specifications for Structural Supports

for Highway Signs, Luminaires, and

(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,

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

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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This rule change was published in Supplement

#1–2021 to the Nacha Operating Rules.

The 2021 Operating Rules & Guidelines

implements a second phase of this rule. This

second phase is discussed below.

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.

See 85 FR 15715 (Mar. 19, 2020).

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.

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.

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.

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.

The Fiscal Service adopted this change

with a delayed effective date of March

22, 2022.

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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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,

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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•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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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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