II. CONCLUSION

After careful consideration, we have concluded that the rehearing applications' main claims do not take account of the two important facts we have made clear through the modifications we adopt today: (1) the 2006-2008 RAR framework is transitional, and the use of a phase-out period to eliminate LD contracts is an appropriate exercise of discretion and consistent with section 380; and (2) the RA-MOO is a state-

imposed requirement that applies to LSEs and does not interfere with federal jurisdiction. We will modify the Decision and deny rehearing on these points. Upon additional consideration, we have determined that the rehearing application's remaining claims are also without merit, and will be denied. Therefore, rehearing of D.05-10-042, as modified, is denied.