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F yO-ԍ Id. at  10.? In sum, the 9645 Joint Board   .recommended extending the interim cap until the rules implementing the new universal service  X -regime mandated by the 1996 Act become effective.? F yO-ԍ Id. at  12.?  Xy- ?7. Discussion. We agree that the interim cap should remain in place until our final rules   kimplementing the universal service provisions of the 1996 Act take effect. By extending the   duration of the cap, we seek to promote an orderly transition to the new system of universal   service that will encompass all of the pertinent requirements of the 1996 Act. We note, as the  X-  9645 Joint Board did in its Extension Recommendation,>( F yO-ԍ Id. at  4.> that the 1996 Act imposes new  X-  requirements for universal service support.h F yOo!-ԍ Id. at  4. See 47 U.S.C.  254(b), (h)(1).h We emphasize the 9645 Joint Board's conclusion   that the provisions of the 1996 Act altering the universal service support mechanisms do not"H 0*U$U$'"   [impose any new obligations on carriers until the 9645 Joint Board recommends, and we adopt,  X-rules implementing those statutory provisions.`F yOb-ԍ Extension Recommendation at  10.`  "8. We conclude that NECA's current projections, which suggest that the USF could   remain below the cap level, do not demonstrate that the cap should be eliminated. The 9645   Joint Board and this Commission are currently considering modifications to the way universal   service support is collected from telecommunications providers and distributed to those carriers   who serve high cost areas. We concur with the 9645 Joint Board's determination in its   recommended decision that retaining the interim cap is essential to facilitate an orderly transition to the new universal service regime mandated by the 1996 Act.  X - 9. Finally, we are extending the interim cap on the USF only until our final universal   <service rules become effective. The duration of the extension is a reflection of the strict statutory   schedule imposed by the 1996 Act and the need for an orderly transistion to the new rules. For  X -  these reasons and those provided in the 9645 Joint Board's Extension Recommendation, we   extend the duration of the interim cap until our final universal service rules, to be adopted by   May 8, 1997, become effective. In addition, for the same reasons, we find good cause for  Xy-  making the rule amendments effective on less than 30 days noticeLyXF yO-ԍ See 5 U.S.C.  553(d)(3).L and shall require that the interim rules become effective on July 1, 1996.  X4-2 Procedural Issues ă  X- N10. Regulatory Flexibility Analysis. We certify that the Regulatory Flexibility Act is not   [applicable to the rule changes we are adopting in this proceeding. These rule changes will not   result in a significant economic impact on a substantial number of small business entities, as   defined by Section 601(3) of the Regulatory Flexibility Act. Entities subject to the rule changes   are engaged in the provision of local exchange and exchange access telecommunications services.   LThese entities are generally large corporations, affiliates of large corporations, or are dominant  X|-  in their fields of operation, and, thus, are not "small entities" as defined by the Act.T|F yO-Ѝ15 U.S.C.  632(a)(1).T We are   =nevertheless committed to reducing the regulatory burdens on small communications services   companies whenever possible, consistent with our other public interest responsibilities. The   [Secretary shall send a copy of this Report and Order to the Chief Counsel for Advocacy of the"7x0*U$U$"   Small Business Administration in accordance with Section 605(b) of the Regulatory Flexibility  X-Act, 5 U.S.C. 601, et seq. (1981).  X-2 Ordering Clauses ă  #11. Accordingly, pursuant to Sections 1, 4(i), 221(c), 214(e), 254 and 410(c) of the   Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 221(c), 214(e), 254 and   410(c), IT IS ORDERED that Part 36 of the Commission's Rules and Regulations, 47 C.F.R. Part   36, Subpart F Universal Service Fund, IS AMENDED as shown in the Appendix to this Report and Order, effective July 1, 1996.  X - 12. IT IS FURTHER ORDERED that, the Secretary shall send a copy of this Report and   Order, including the regulatory flexibility certification, to the Chief Counsel for Advocacy of the  X -  Small Business Administration, in accordance with paragraph 605(b ) of the Regulatory Flexibility  X -Act, 5 U.S.C. 601 et seq. (1981).  ` `  hh,VFEDERAL COMMUNICATIONS COMMISSION ` `  hh,VWilliam F. Caton ` `  hh,VActing Secretary"!0*U$U$u"  X_-F APPENDIX ă Part 36 of Title 47 of the Code of Federal Regulations is amended as follows: PART 36--JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD PROCEDURES FOR SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, REVENUES, EXPENSES, TAXES AND RESERVES FOR TELECOMMUNICATIONS COMPANIES. 1. The authority citation for Part 36 continues to read as follows:  Xb- Authority: 47 U.S.C. Secs. 151, 154(i) and (j), 205, 221(c), 403 and 410. 2. Section 36.601 is amended by amending paragraph (c) to read as follows:  X-  36.601 General. SK * * * * *lU (c) During an interim period commencing on January 1, 1994, and terminating on the effective date of the Commission's universal service rules, to be adopted in CC Docket 9645 on or before May 8, 1997, the annual amount of the total Universal Service Fund shall not exceed the amount of the total Universal Service Fund for the immediately preceding calendar year, increased by a rate equal to the rate of increase in the total number of working loops nationwide during the calendar year preceding the June filing. The total Universal Service Fund shall consist of the Universal Service expense adjustments, including amounts calculated pursuant to 36.612(a) and 36.631. The rate of increase in total working loops shall be based upon the difference between the number of total working loops on December 31 of the year preceding the June filing and the number of total working loops on December 31 of the second year preceding that filing, both calculated pursuant to  36.611(a)(8). "!0*l#l# "Ԍ3. Section 36.622 is amended by amending paragraph (c) to read as follows:  X-  36.622 National and study area average unseparated loop costs.  X- SK * * * * * lU (c) During an interim period commencing on January 1, 1994, and terminating on the effective date of the Commission's universal service rules, to be adopted in CC Docket No. 9645 on or before May 8, 1997, the National Average Unseparated Loop Cost per Working Loop shall be the greater of: (1) The amount calculated pursuant to the method described in paragraph (a) of this section; or (2) An amount calculated to produce the maximum total Universal Service Fund allowable pursuant to  36.601(c).