Vol. 79 Monday, No. 22 February 3, 2014

Pages 6077–6452

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 79, No. 22

Monday, February 3, 2014

Agriculture Department Federal Aviation Administration See Forest Service RULES NOTICES Establishment of Class E Airspace, Amendment of Class D Agency Information Collection Activities; Proposals, and Class E Airspace, and Revocation of Class E Submissions, and Approvals, 6144 Airspace: Salinas, CA, 6077–6078 Bureau of Consumer Financial Protection Minimum Altitudes for Use of Autopilots, 6082–6088 NOTICES Use of Additional Portable Oxygen Concentrators on Board Privacy Act; Systems of Records, 6190–6194 Aircraft, 6078–6082 PROPOSED RULES Airworthiness Directives: Centers for Medicare & Medicaid Services Airbus Airplanes, 6102–6106 NOTICES Embraer S.A. Airplanes, 6106–6109 Agency Information Collection Activities; Proposals, Fokker Services B.V. Airplanes, 6109–6111 Submissions, and Approvals, 6197–6198 NOTICES Quiet Aircraft Technology Incentive for Commercial Air Children and Families Administration Tour Operators in Grand Canyon National Park, 6267– NOTICES 6268 Agency Information Collection Activities; Proposals, Federal Bureau of Investigation Submissions, and Approvals, 6198–6199 NOTICES Agency Information Collection Activities; Proposals, Commerce Department Submissions, and Approvals: See Foreign-Trade Zones Board Uniform Crime Reporting Data Collection Instrument See International Trade Administration Pretesting and Burden Estimation General Clearance, See National Oceanic and Atmospheric Administration 6230–6231 Federal Energy Regulatory Commission Commodity Futures Trading Commission NOTICES NOTICES Applications: Meetings; Sunshine Act, 6190 River Falls Municipal Utilities, 6194–6195 Records Governing Off-the-Record Communications, 6195– Corporation for National and Community Service 6196 NOTICES Requests under Blanket Authorization: Agency Information Collection Activities; Proposals, Southwest Gas Storage Co., 6196 Submissions, and Approvals, 6194 Federal Railroad Administration NOTICES Defense Department Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals, 6268–6269 Federal Acquisition Regulation: Contracts under the Small Business Administration 8(a) Federal Reserve System Program, 6135–6143 RULES Uniform National Discharge Standards for Vessels of the Availability of Information, 6077 Armed Forces – Phase II, 6117–6135 NOTICES Proposals to Engage in or to Acquire Companies Engaged in Energy Department Permissible Nonbanking Activities, 6196 See Federal Energy Regulatory Commission Fish and Wildlife Service NOTICES Environmental Protection Agency Agency Information Collection Activities; Proposals, RULES Submissions, and Approvals: Pesticide Tolerances: National Fish Habitat Action Plan Project Funding alpha–Alkyl–omega–Hydroxypoly (Oxypropylene) and/or Process, 6212–6213 Poly (Oxyethylene) Polymers where the Alkyl Chain Contains a Minimum of Six Carbons, etc., 6092–6097 Food and Drug Administration PROPOSED RULES RULES Standards of Performance: Maximum Civil Money Penalty Amounts; Civil Money New Residential Wood Heaters, New Residential Penalty Complaints, 6088–6092 Hydronic Heaters and Forced-Air Furnaces, and New PROPOSED RULES Residential Masonry Heaters, 6330–6416 Current Good Manufacturing Practice and Hazard Analysis Uniform National Discharge Standards for Vessels of the and Risk-Based Preventive Controls for Food for Armed Forces – Phase II, 6117–6135 Animals, 6111–6112

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Draft Guidance for Industry and Staff: See National Park Service Qualitative Risk Assessment of Risk of Activity/Animal See Ocean Energy Management Bureau Food Combinations for Activities (Outside the Farm Definition) Conducted in a Facility Co-Located on a Farm, 6116–6117 Internal Revenue Service Maximum Civil Money Penalty Amounts; Civil Money NOTICES Penalty Complaints, 6112–6116 Meetings: NOTICES Taxpayer Advocacy Panel Notices and Correspondence Agency Information Collection Activities; Proposals, Project Committee, 6269 Submissions, and Approvals: Taxpayer Advocacy Panel Taxpayer Communications Animal Drug User Fee Act Cover Sheet, 6199–6200 Project Committee, 6269–6270 Voluntary National Retail Food Regulatory Program Taxpayer Advocacy Panel Toll-Free Phone Line Project Standards, 6200–6203 Committee, 6269 Meetings: American Glaucoma Society/FDA Workshop on International Trade Administration Supporting Innovation for Safe and Effective Minimally Invasive Glaucoma Surgery, 6203–6204 NOTICES Requests for Nominations: Antidumping and Countervailing Duty Administrative Science Board, 6204 Reviews; Results, Extensions, Amendments, etc., 6147– 6158 Foreign-Trade Zones Board Antidumping Duty Administrative Reviews; Results, NOTICES Extensions, Amendments, etc.: Approvals of Subzone Status: Certain Frozen Fish Fillets from the Socialist Republic of Toshiba International Corp., Houston, TX, 6146 Vietnam, 6158–6159 Proposed Production Activities: Certain New Pneumatic Off-the-Road Tires from the Foreign-Trade Zone 230; Oracle Flexible Packaging, Inc., People’s Republic of China; Correction, 6159 Winston–Salem, NC, 6146 Antidumping Duty Orders; Results, Extensions, Foreign-Trade Zone 269, Schneider Electric USA, Athens, Amendments, etc.: TX, 6146–6147 Electrolytic Manganese Dioxide from Australia and the People’s Republic of China, 6162–6163 Forest Service Antidumping or Countervailing Duty Orders, Findings, or NOTICES Suspended Investigations; Administrative Review Charter Renewals: Requests, 6159–6162 National Advisory Committee for Implementation of the Antidumping or Countervailing Duty Orders, Findings, or National Forest System Land Management Planning Suspended Investigations; Sunset Reviews, 6162 Rule, 6144–6145 Five-year Sunset Reviews, 6163–6165 Meetings: Scope Rulings, 6165–6166 Black Hills National Forest Advisory Board, 6145–6146

General Services Administration International Trade Commission PROPOSED RULES NOTICES Federal Acquisition Regulation: Complaints: Contracts under the Small Business Administration 8(a) Television Sets, Television Receivers, Television Tuners, Program, 6135–6143 and Components Thereof, 6219 Five-Year Reviews; Results, Extensions, Amendments, etc.: Health and Human Services Department Barium Carbonate from China, 6219–6222 See Centers for Medicare & Medicaid Services Lightweight Thermal Paper from China and Germany, See Children and Families Administration 6218–6219 See Food and Drug Administration Refined Brown Aluminum Oxide from China, 6225–6227 See National Institutes of Health Welded Stainless Steel Pressure Pipe from China, 6222– 6225 Homeland Security Department Investigations; Determinations, Modifications, Rulings, etc.: See U.S. Citizenship and Immigration Services Non-Volatile Memory Devices and Products Containing See U.S. Customs and Border Protection Same, 6227–6228 NOTICES Meetings; Sunshine Act, 6228 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Chemical Facility Anti-Terrorism Standards Personnel Justice Department Surety Program, 6418–6452 See Federal Bureau of Investigation See Justice Programs Office Indian Affairs Bureau NOTICES NOTICES Agency Information Collection Activities; Proposals, Indian Gaming: Submissions, and Approvals: Tribal–State Class III Gaming Compact, 6213 Drug Endangered Children Tracking System User Survey, 6229–6230 Interior Department Inspection of Records Relating to Visual Depictions of See Fish and Wildlife Service Simulated Sexually Explicit Performances, 6228– See Indian Affairs Bureau 6229

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Justice Programs Office St. George Reef Light Station Restoration and NOTICES Maintenance, Northwest Seal Rock, Del Norte Agency Information Collection Activities; Proposals, County, CA, 6179–6184 Submissions, and Approvals: Firearm Inquiry Statistics Program, 6231 National Park Service NOTICES Labor Department Environmental Impact Statements; Availability, etc.: See Mine Safety and Health Administration Restoration of Mariposa Grove of Giant Sequois, Yosemite National Park, CA, 6214 Mine Safety and Health Administration NOTICES National Science Foundation Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Antarctic Conservation Act Permits, 6236 Representative of Miners, Notification of Legal Identity, and Notification of Commencement of Operations Ocean Energy Management Bureau and Closing of Mines, 6232–6233 NOTICES National Aeronautics and Space Administration Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals: Federal Acquisition Regulation: Leasing of Sulphur or Oil and Gas in the Outer Contracts under the Small Business Administration 8(a) Continental Shelf and Pipeline Rights of Way, 6214– Program, 6135–6143 6218 NOTICES Meetings: Securities and Exchange Commission NASA Advisory Council; Human Exploration and NOTICES Operations Committee; Research Subcommittee, Agency Information Collection Activities; Proposals, 6233–6234 Submissions, and Approvals, 6236–6238 Performance Review Board, Senior Executive Service, 6234 Applications: Ohio National Life Insurance Co., et al., 6238–6243 National Archives and Records Administration Meetings; Sunshine Act, 6243–6244 NOTICES Public Company Accounting Oversight Board: Records Schedules, 6234–6236 Proposed Rules on Amendments to Conform Board Rules and Forms to the Dodd–Frank Act, etc., 6272–6327 National Endowment for the Humanities Self-Regulatory Organizations; Proposed Rule Changes: NOTICES Chicago Board Options Exchange, Inc., 6249–6253 Service Contract Inventory, FY 2013, 6236 NASDAQ OMX BX, Inc., 6256–6258, 6264–6266 NASDAQ OMX PHLX LLC, 6244–6246 6253–6256 National Foundation on the Arts and the Humanities NASDAQ Stock Market LLC, 6247–6249, 6262–6264 See National Endowment for the Humanities NYSE Arca, Inc., 6258–6262 National Institutes of Health Options Clearing Corp., 6246–6247 NOTICES Meetings: Small Business Administration Center for Scientific Review, 6206–6207 NOTICES National Cancer Institute, 6205–6206, 6208 Disaster Declarations: National Heart, Lung, and Blood Institute, 6205 IllinoisAmendment 1, 6266 National Institute of Environmental Health Sciences, Military Reservist Economic Injury Disaster Loans Interest 6206 Rate for Second Quarter FY 2014, 6266–6267 National Institute of Mental Health, 6207 National Institute on Aging, 6205 Transportation Department National Institute on Drug Abuse, 6204 See Federal Aviation Administration See Federal Railroad Administration National Oceanic and Atmospheric Administration RULES Treasury Department Fisheries of the Caribbean, Gulf of Mexico, and South See Internal Revenue Service Atlantic: Revisions to Headboat Reporting Requirements for U.S. Citizenship and Immigration Services Species Managed by the Gulf of Mexico Fishery NOTICES Management Council, 6097–6101 Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Meetings: Application for T Nonimmigrant Status, Application for Pacific Fishery Management Council, 6166–6167 Immediate Family Member of T–1 Recipient, etc., Takes and Imports of Marine Mammals, 6177–6179 6209–6210 Takes of Marine Mammals Incidental to Specified Activities: U.S. Customs and Border Protection Cape Winds High Resolution Survey; Nantucket Sound, NOTICES MA, 6167–6177 National Customs Automation Program: Seabird and Pinniped Research Activities in Central Test Concerning Automated Commercial Environment California, 6184–6189 Cargo Release for Ocean and Rail Carriers, 6210–6212

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Veterans Affairs Department Part IV NOTICES Homeland Security Department, 6418–6452 Exclusive Licenses, 6270 Funding Availabilities: Supportive Services for Veteran Families Program, 6270 Reader Aids Consult the Reader Aids section at the end of this page for Separate Parts In This Issue phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. Part II To subscribe to the Federal Register Table of Contents Securities and Exchange Commission, 6272–6327 LISTSERV electronic mailing list, go to http:// listserv.access.gpo.gov and select Online mailing list Part III archives, FEDREGTOC-L, Join or leave the list (or change Environmental Protection Agency, 6330–6416 settings); then follow the instructions.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

12 CFR 261...... 6077 14 CFR 71...... 6077 121 (2 documents) ...... 6078, 6082 125...... 6082 135...... 6082 Proposed Rules: 39 (4 documents) ...6102, 6104, 6106, 6109 21 CFR 17...... 6088 Proposed Rules: 16...... 6111 17...... 6112 225...... 6111 500...... 6111 507 (2 documents) ...... 6111, 6116 579...... 6111 40 CFR 180...... 6092 Proposed Rules: 60...... 6330 1700...... 6117 48 CFR Proposed Rules: 5...... 6135 6...... 6135 18...... 6135 19...... 6135 52...... 6135 50 CFR 622...... 6097

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Rules and Regulations Federal Register Vol. 79, No. 22

Monday, February 3, 2014

This section of the FEDERAL REGISTER List of Subjects in 12 CFR Part 261 DEPARTMENT OF TRANSPORTATION contains regulatory documents having general applicability and legal effect, most of which Confidential business information, Federal Aviation Administration are keyed to and codified in the Code of Freedom of information, Reporting and Federal Regulations, which is published under recordkeeping requirements. 14 CFR Part 71 50 titles pursuant to 44 U.S.C. 1510. Authority and Issuance [Docket No. FAA–2013–0708; Airspace The Code of Federal Regulations is sold by Docket No. 13–AWP–11] the Superintendent of Documents. Prices of For the reasons stated in the new books are listed in the first FEDERAL Supplementary Information, 12 CFR Establishment of Class E Airspace, REGISTER issue of each week. part 261 is amended as follows. Amendment of Class D and Class E Airspace, and Revocation of Class E PART 261—RULES REGARDING Airspace; Salinas, CA FEDERAL RESERVE SYSTEM AVAILABILITY OF INFORMATION AGENCY: Federal Aviation 12 CFR Part 261 Administration (FAA), Department of ■ 1. The authority citation for part 261 Transportation (DOT). continues to read as follows: [Docket No. R–1481] ACTION: Final rule. Authority: 5 U.S.C. 552; 12 U.S.C. 248(i) and (k), 321 et seq., 611 et seq., 1442, 1467a, SUMMARY: This action establishes Class RIN 7100 AD–80 1817(a)(2)(A), 1817(a)(8), 1818(u) and (v), E airspace and modifies Class D airspace Rules Regarding Availability of 1821(o), 1821(t), 1830, 1844, 1951 et seq., and Class E airspace at Salinas, CA, to Information 2601, 2801 et seq., 2901 et seq., 3101 et seq., accommodate aircraft departing and 3401 et seq.; 15 U.S.C. 77uuu(b), 78q(c)(3); 29 arriving under Instrument Flight Rules AGENCY: Board of Governors of the U.S.C. 1204; 31 U.S.C. 5301 et seq.; 42 U.S.C. (IFR) at Salinas Municipal Airport. This Federal Reserve System. 3601; 44 U.S.C. 3510. action also removes Class E airspace designated as surface area. Adjustments ACTION: Final rule. ■ 2. In § 261.20, paragraphs (d)(1) and to the geographic coordinates of the (2) are added to read as follows: airport also are made in the respective SUMMARY: The Board of Governors of the § 261.20 Confidential supervisory Class D airspace and Class E airspace Federal Reserve System (Board) information made available to supervised areas. This action, initiated by the published in the Federal Register of financial institutions and financial biennial review of the Salinas airspace September 13, 2011, technical changes institution supervisory agencies. area, enhances the safety and to the Board’s rules regarding management of aircraft operations at the * * * * * availability of information and other airport. regulations that been made to account (d) * * * DATES: Effective date, 0901 UTC, April for the transfer of authority over Savings (1) A state financial institution 3, 2014. The Director of the Federal and Loans Holding Companies (SLHCs) supervisory agency having direct Register approves this incorporation by to the Board. The publication supervisory authority over such reference action under 1 CFR Part 51, inadvertently resulted in the omission supervised financial institution; or subject to the annual revision of FAA of language in the Board’s rules (2) A state financial institution Order 7400.9 and publication of regarding availability of information. conforming amendments. This document reinstates that language. supervisory agency not having direct supervisory authority over such FOR FURTHER INFORMATION CONTACT: DATES: Effective February 3, 2014. supervised financial institution if the Richard Roberts, Federal Aviation Administration, Operations Support FOR FURTHER INFORMATION CONTACT: requesting agency has entered into an Group, Western Service Center, 1601 Katherine Wheatley, Associate General information sharing agreement with the appropriate Federal Reserve Bank and Lind Avenue SW., Renton, WA 98057; Counsel, (202) 452–3779. telephone (425) 203–4517. the information to be provided concerns SUPPLEMENTARY INFORMATION: The Board a supervised financial institution that SUPPLEMENTARY INFORMATION: of Governors of the Federal Reserve has acquired or has applied to acquire System published in the Federal History a financial institution subject to that Register of September 13, 2011, On October 22, 2013, the FAA technical changes to the Board’s rules agency’s direct supervisory authority. published in the Federal Register a regarding availability of information and * * * * * notice of proposed rulemaking (NPRM) other regulations that been made to By order of the Board of Governors of the to amend controlled airspace at Salinas, account for the transfer of authority over Federal Reserve System, acting through the CA (78 FR 62498). Interested parties SLHCs to the Board. The publication Secretary of the Board under delegated were invited to participate in this inadvertently resulted in the omission authority, January 28, 2014. rulemaking effort by submitting written of language in the Board’s rules Robert deV. Frierson, comments on the proposal to the FAA. regarding the disclosure of confidential No comments were received. Secretary of the Board. information to state financial institution Class D airspace and Class E airspace supervisory agencies. This document [FR Doc. 2014–02116 Filed 1–31–14; 8:45 am] designations are published in reinstates that language. BILLING CODE 6210–01–P paragraphs 5000, 6002, 6004 and 6005,

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respectively, of FAA Order 7400.9X controlled airspace at Salinas Municipal AWP CA E4 Salinas, CA [Modified] dated August 7, 2013, and effective Airport, Salinas, CA. Salinas Municipal Airport, CA September 15, 2013, which is (Lat. 36°39′46″ N., long. 121°36′23″ W.) Environmental Review incorporated by reference in 14 CFR That airspace extending upward from the 71.1. The Class D airspace and Class E The FAA has determined that this surface within 1.8 miles each side of the 150° airspace designations listed in this action qualifies for categorical exclusion bearing of the Salinas Municipal Airport document will be published under the National Environmental extending from the 4.3-mile radius to 8 miles subsequently in that Order. Policy Act in accordance with FAA southeast of the airport. This Class E airspace Order 1050.1E, ‘‘Environmental area is effective during the dates and times The Rule Impacts: Policies and Procedures,’’ established in advance by a Notice to Airmen. The effective date and time will This action amends Title 14 Code of paragraph 311a. This airspace action is thereafter be continuously published in the Federal Regulations (14 CFR) Part 71 by not expected to cause any potentially Airport/Facility Directory. establishing Class E airspace extending significant environmental impacts, and Paragraph 6005 Class E airspace areas upward from 700 feet above the surface no extraordinary circumstances exist, that warrant preparation of an extending upward from 700 feet or more within a 13.1-mile radius of Salinas above the surface of the earth. Municipal Airport, Salinas, CA. environmental assessment. * * * * * Additionally, the 10-mile southeast List of Subjects in 14 CFR Part 71 segment of Class E airspace designated AWP CA E5 Salinas, CA [New] as an extension to Class D surface area Airspace, Incorporation by reference, Salinas Municipal Airport, CA is modified from the 4.3-mile radius of Navigation (air). (Lat. 36°39′46″ N., long. 121°36′23″ W.) the airport to 8 miles southeast of the Adoption of the Amendment Airspace extending upward from 700 feet airport. This modification eliminates the above the surface within a 13.1-mile radius need for Class E airspace designated as In consideration of the foregoing, the of the Salinas Municipal Airport. surface airspace and is, therefore, Federal Aviation Administration amends 14 CFR part 71 as follows: Issued in Seattle, Washington, on January removed. The geographic coordinates of 17, 2014. the airport are updated in the respective PART 71—DESIGNATION OF CLASS A, Clark Desing, Class D airspace and Class E airspace B, C, D AND E AIRSPACE AREAS; AIR Manager, Operations Support Group, Western areas to coincide with the FAA’s TRAFFIC SERVICE ROUTES; AND Service Center. aeronautical database. This action is REPORTING POINTS [FR Doc. 2014–02044 Filed 1–31–14; 8:45 am] necessary for the safety and BILLING CODE 4910–13–P management of IFR operations. ■ 1. The authority citation for 14 CFR The FAA has determined this Part 71 continues to read as follows: regulation only involves an established Authority: 49 U.S.C. 106(g), 40103, 40113, DEPARTMENT OF TRANSPORTATION body of technical regulations for which 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– frequent and routine amendments are 1963 Comp., p. 389. Federal Aviation Administration necessary to keep them operationally current. Therefore, this regulation: (1) Is § 71.1 [Amended] 14 CFR Part 121 not a ‘‘significant regulatory action’’ ■ 2. The incorporation by reference in [Docket No.: FAA–2013–1013; Amdt. No. under Executive Order 12866; (2) is not 14 CFR Part 71.1 of the Federal Aviation 121–367] a ‘‘significant rule’’ under DOT Administration Order 7400.9X, Airspace RIN 2120–AK–35 Regulatory Policies and Procedures (44 Designations and Reporting Points, FR 11034; February 26, 1979); and (3) dated August 7, 2013, and effective Use of Additional Portable Oxygen does not warrant preparation of a September 15, 2013 is amended as Concentrators on Board Aircraft regulatory evaluation as the anticipated follows: impact is so minimal. Since this is a AGENCY: Federal Aviation routine matter that only affects air traffic Paragraph 5000 Class D airspace. Administration (FAA), DOT. procedures and air navigation, it is * * * * * ACTION: Immediately adopted final rule. certified this rule, when promulgated, AWP CA D Salinas, CA [Modified] does not have a significant economic SUMMARY: This action amends the FAA’s Salinas Municipal Airport, CA rules for permitting use of portable impact on a substantial number of small (Lat. 36°39′46″ N., long. 121°36′23″ W.) entities under the criteria of the oxygen concentrator (POC) devices on Airspace extending upward from the board aircraft, provided certain Regulatory Flexibility Act. The FAA’s surface to, but not including 2,500 feet mean authority to issue rules regarding conditions in the SFAR are met. This sea level within a 4.3-mile radius of the action is necessary to allow all POC aviation safety is found in Title 49 of the Salinas Municipal Airport. This Class D U.S. Code. Subtitle 1, Section 106 airspace area is effective during the specific devices deemed acceptable by the FAA discusses the authority of the FAA dates and times established in advance by a for use in air commerce to be available Administrator. Subtitle VII, Aviation Notice to Airmen. The effective date and time to the traveling public in need of oxygen Programs, describes in more detail the will thereafter be continuously published in therapy. Passengers will be able to carry scope of the agency’s authority. This the Airport/Facility Directory. these devices on board the aircraft and rulemaking is promulgated under the Paragraph 6002 Class E airspace designated use them with the approval of the authority described in Subtitle VII, Part as surface areas. aircraft operator. A, Subpart I, Section 40103. Under that * * * * * DATES: Effective February 18, 2014. section, the FAA is charged with FOR FURTHER INFORMATION CONTACT: For prescribing regulations to assign the use AWP CA E2 Salinas, CA [Removed] technical questions concerning this of airspace necessary to ensure the Paragraph 6004 Class E airspace areas action, contact DK Deaderick, Air safety of aircraft and the efficient use of designated as an extension to Class D surface Transportation Division, AFS–200, airspace. This regulation is within the area. Flight Standards Service, Federal scope of that authority as it amends * * * * * Aviation Administration, 800

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Independence Avenue SW., for making this rule effective 15 published SFAR 106 so passengers who Washington, DC 20591; telephone 202– calendar days after its publication in the otherwise could not fly could do so with 267–8166; email [email protected]. Federal Register. an affordable alternative to what existed For legal questions concerning this before SFAR 106 was published. Authority for This Rulemaking action, contact Robert H. Frenzel, The FAA continues to pursue the Manager, Operations Law Branch, Office The FAA’s authority to issue rules on performance-based standard for all POC of the Chief Counsel, Regulations aviation safety is found in Title 49 of the devices. This process is time- Division (AGC–220), Federal Aviation United States Code (U.S.C.). This consuming, and the FAA intends to Administration, 800 Independence rulemaking is promulgated under the publish a notice in the Federal Register Avenue SW., Washington, DC 20591; authority described in 49 U.S.C. 106(f), and offer the public a chance to telephone 202–267–3073; email which vests final authority in the comment on the proposal when it is [email protected]. Administrator for carrying out all complete. In the meantime, manufacturers continue to create new SUPPLEMENTARY INFORMATION: functions, powers, and duties of the administration relating to the and innovative POC devices, and Good Cause for Immediate Adoption promulgation of regulations and rules, manufacturers have requested that their Section 553 of the Administrative and section 44701(a)(5), which requires products also be included as acceptable Procedure Act, 5 U.S.C. 553(b)(3)(B), the Administrator to promulgate POC devices in SFAR 106. SeQual provides that, when an agency for good regulations and minimum standards for Technologies, Inc. and VBOX, Inc. have cause finds that notice and public other practices, methods, and submitted requests for approval and procedure are impracticable, procedures necessary for safety in air addition to SFAR 106, with all required unnecessary, or contrary to the public commerce and national security. documentation for their POC devices, to the FAA. interest, the agency may issue a rule I. Overview of the Immediately without providing notice and an Adopted Final Rule B. Related Actions opportunity for public comment. We On July 12, 2005, the FAA published have determined that there is good This action amends SFAR 106 and permits the use of additional POC SFAR 106 entitled, ‘‘Use of Certain cause for making the rule final without Portable Oxygen Concentrator Devices prior proposal and opportunity for devices on board aircraft. Specifically, the FAA is adding the use of SeQual Onboard Aircraft’’ (70 FR 40156). SFAR comment because the issues related to 106 is the result of a notice the FAA the use of POC devices on board aircraft Technologies’s eQuinox (model 4000) and Oxywell (Model 4000), and VBOX published on July 14, 2004 (69 FR have already been discussed as part of 42324) to address the needs of an earlier rulemaking. More specifically, Inc.’s Trooper on the list of POC devices authorized for use in air commerce. The passengers who must travel with on July 14, 2004, the FAA issued a medical oxygen. Before publication of notice of proposed rulemaking (NPRM) FAA has reviewed these devices and accepted the documentation provided SFAR 106, passengers in need of on the use of POC devices on board medical oxygen during air aircraft (69 FR 42324). Then, on July 12, by the manufacturer. After reviewing the applicable Food and Drug transportation faced many obstacles 2005, after reviewing public comments when requesting service. Many aircraft received, the FAA published Special Administration (FDA) safety standards and the Pipeline and Hazardous operators did not provide medical Federal Aviation Regulation 106 (SFAR oxygen service aboard flights, and those 106) entitled, ‘‘Use of Certain Portable Materials Safety Administration (PHMSA) findings, the devices were that did often provided service at a price Oxygen Concentrator Devices on Board that travelers could not afford. Aircraft’’ (70 FR 40156). Therefore, the determined by the FAA to be acceptable for use in air commerce. Coordinating service between operators FAA has determined that notice and and suppliers at airports was also public comment are unnecessary. II. Background difficult, and passengers frequently Moreover, pursuant to 5 U.S.C. A. Statement of the Problem chose not to fly because of these 553(d)(3), we find that good cause exists difficulties. for making this rule effective in less When SFAR 106 was published, the SFAR 106 permits passengers to than 30 days. This rule is being made FAA committed to establishing a single carry-on and use certain POC devices on effective 15 calendar days after its performance standard for all POCs so board aircraft, if the aircraft operator publication in the Federal Register to the regulations would not apply to ensures that the conditions specified in prevent unnecessary delay of additional specific manufacturers and models of the SFAR 106 for their use are met. The POC devices for use on board aircraft by device. Whenever possible, the FAA POC devices initially determined airlines while still providing airlines tries to regulate by creating acceptable for use in SFAR 106, adequate notice and time to ensure the performance-based standards. In the published July 14, 2005, were AirSep devices can be used safely on board case of SFAR 106, the most efficient Corporation’s LifeStyle and Inogen, aircraft. We believe, based on way to serve both the passenger and the Inc.’s Inogen One. SFAR 106 has been information the Department has aircraft operator was to allow the use of amended six times to allow passengers received from airlines, that fifteen the devices determined to be acceptable to use additional devices. calendar days is sufficient amount of by the FAA in SFAR 106 in a special time for an airline to ensure that an temporary regulation. III. Discussion of the Immediately FAA-approved POC device does not As the FAA stated in the preamble Adopted Rule cause interference with avionics discussion of the final rule that New medical oxygen technologies systems on that carrier’s aircraft and established SFAR 106, ‘‘while we are (POC devices) approved by the FDA convey this information to the committed to developing a performance- reduce the risks typically associated appropriate airline personnel in order to based standard for all future POCs, we with compressed oxygen and provide a accept these devices on board aircraft do not want to prematurely develop safe alternative for passengers who need for use by passengers who need medical standards that have the effect of stifling oxygen therapy. Numerous oxygen therapy for air travel. As such, new technology of which we are manufacturers have developed small the FAA believes that good cause exists unaware.’’ The FAA developed and POC devices that work by separating

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oxygen from nitrogen and other gases rules that include a Federal mandate flexibility analysis as described in the contained in ambient air and dispensing likely to result in the expenditure by RFA. it in concentrated form to the user with State, local, or tribal governments, in the However, if an agency determines that an oxygen concentration of about 90%. aggregate, or by the private sector, of a rule is not expected to have a The POC devices operate using either $100 million or more annually (adjusted significant economic impact on a rechargeable batteries or, if the aircraft for inflation with base year of 1995). substantial number of small entities, operator obtains approval from the FAA, This portion of the preamble section 605(b) of the RFA provides that aircraft electrical power. Additionally, summarizes the FAA’s analysis of the the head of the agency may so certify as stated in Section 2 of SFAR 106, no economic impacts of this final rule. and a regulatory flexibility analysis is covered device may contain hazardous Department of Transportation Order not required. The certification must materials as determined by PHMSA DOT 2100.5 prescribes policies and include a statement providing the (written documentation necessary), and procedures for simplification, analysis, factual basis for this determination, and each device must also be regulated by and review of regulations. If the the reasoning should be clear. the FDA. expected cost impact is so minimal that As this final rule enables additional This immediately adopted a proposed or final rule does not POC devices to be carried on board amendment to SFAR 106 is adding three warrant a full evaluation, this order aircraft, the rule provides benefits at additional POC devices, thus, increasing permits that a statement to that effect minimal costs for passengers and the number of options for aircraft and the basis for it be included in the minimal implementation costs for all passengers to carry on and use on board preamble if a full regulatory evaluation business entities. aircraft. The FAA is adding SeQual of the cost and benefits is not prepared. Therefore, as provided in section Technologies, Inc.’s eQuinox Oxygen Such a determination has been made for 605(b), the head of the FAA certifies System (model 4000) and Oxywell this final rule. The reasoning for this that this rulemaking will not result in a Oxygen System (model 4000), as well as determination follows: significant economic impact on a VBOX, Inc.’s Trooper device to the list This action amends SFAR 106 to substantial number of small entities. allow for the use of additional POC of POC devices that may be carried on C. International Trade Impact devices on board aircraft, provided and used by a passenger on board an Assessment aircraft. Each manufacturer has certain conditions in the SFAR are met. The Trade Agreements Act of 1979 included technical specifications for This action is necessary to allow (Pub. L. 96–39), as amended by the their devices in each request for additional POC devices deemed Uruguay Round Agreements Act (Pub. approval, as well as the required acceptable by the FAA to be available to L. 103–465), prohibits Federal agencies documentation from PHMSA and the the traveling public in need of oxygen from establishing standards or engaging FDA. therapy, for use in air commerce. As the in related activities that create SFAR 106 is an enabling rule, which rule increases the number of acceptable unnecessary obstacles to the foreign means that no aircraft operator is POC devices on board aircraft, the rule commerce of the United States. required to allow passengers to operate does not increase costs and provides Pursuant to these Acts, the POC devices on board. If an aircraft additional benefits. The FAA has, establishment of standards is not operator chooses to allow a passenger to therefore, determined that this final rule considered an unnecessary obstacle to operate these devices, SFAR 106 enables is not a ‘‘significant regulatory action’’ the foreign commerce of the United such action, provided that the SFAR 106 as defined in section 3(f) of Executive States, so long as the standard has a conditions are met. Order 12866, and is not ‘‘significant’’ as defined in DOT’s Regulatory Policies legitimate domestic objective, such the IV. Regulatory Notices and Analyses and Procedures. protection of safety, and does not operate in a manner that excludes A. Regulatory Evaluation B. Regulatory Flexibility Determination imports that meet this objective. The Changes to Federal regulations must The Regulatory Flexibility Act of 1980 statute also requires consideration of undergo several economic analyses. (Pub. L. 96–354) (RFA) establishes ‘‘as a international standards and, where First, Executive Order 12866 directs that principle of regulatory issuance that appropriate, that they be the basis for each Federal agency shall propose or agencies shall endeavor, consistent with U.S. standards. The FAA has assessed adopt a regulation only upon a reasoned the objectives of the rule and of the potential effect of this immediately determination that the benefits of the applicable statutes, to fit regulatory and adopted final rule and determined that intended regulation justify its costs. informational requirements to the scale it will have only a domestic impact and Second, the Regulatory Flexibility Act of the businesses, organizations, and therefore will not create unnecessary of 1980 (Pub. L. 96–354) requires governmental jurisdictions subject to obstacles to the foreign commerce of the agencies to analyze the economic regulation. To achieve this principle, United States. impact of regulatory changes on small agencies are required to ‘‘solicit and entities. Third, the Trade Agreements consider flexible regulatory proposals D. Unfunded Mandates Assessment Act of 1979 (Pub. L. 96–39) prohibits and to explain the rationale for their Title II of the Unfunded Mandates agencies from setting standards that actions to assure that such proposals are Reform Act of 1995 (Pub. L. 104–4) create unnecessary obstacles to the given serious consideration.’’ The RFA requires each Federal agency to prepare foreign commerce of the United States. covers a wide-range of small entities, a written statement assessing the effects In developing U.S. standards, this Trade including small businesses, not-for- of any Federal mandate in a proposed or Act requires agencies to consider profit organizations, and small final agency rule that may result in an international standards and, where governmental jurisdictions. expenditure of $100 million or more (in appropriate, that they be the basis of Agencies must perform a review to 1995 dollars) in any one year by State, U.S. standards. Fourth, the Unfunded determine whether a rule will have a local, and tribal governments, in the Mandates Reform Act of 1995 (Pub. L. significant economic impact on a aggregate, or by the private sector; such 104–4) requires agencies to prepare a substantial number of small entities. If a mandate is deemed to be a ‘‘significant written assessment of the costs, benefits, the agency determines that it will, the regulatory action.’’ The FAA currently and other effects of proposed or final agency must prepare a regulatory uses an inflation-adjusted value of

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$143.1 million in lieu of $100 million. Standards and Recommended Practices 1. Search the Federal eRulemaking This final rule does not contain such a that correspond to these regulations. Portal (http://www.regulations.gov); mandate; therefore, the requirements of Executive Order 13609, Promoting 2. Visit the FAA’s Regulations and Title II of the Act do not apply. International Regulatory Cooperation, Policies Web page at http:// www.faa.gov/regulations_policies/ or E. Paperwork Reduction promotes international regulatory cooperation to meet shared challenges 3. Access the Government Printing The Paperwork Reduction Act of 1995 involving health, safety, labor, security, Office’s Web page at http:// (44 U.S.C. 3507(d)) requires that the environmental, and other issues and to www.gpo.gov/fdsys/. FAA consider the impact of paperwork reduce, eliminate or prevent Copies may also be obtained by and other information collection unnecessary differences in regulatory sending a request (identified by notice, burdens imposed on the public. requirements. The FAA has analyzed amendment, or docket number of this According to the 1995 amendments to this action under the policies and rulemaking) to the Federal Aviation the Paperwork Reduction Act (5 CFR agency responsibilities of Executive Administration, Office of Rulemaking, 1320.8(b)(2)(vi)), an agency may not Order 13609, and has determined that ARM–1, 800 Independence Avenue collect or sponsor the collection of this action would have no effect on SW., Washington, DC 20591, or by information, nor may it impose an international regulatory cooperation. calling (202) 267–9680. information collection requirement unless it displays a currently valid G. Environmental Analysis B. Small Business Regulatory Office of Management and Budget Enforcement Fairness Act FAA Order 1050.1E identifies FAA (OMB) control number. actions that are categorically excluded The Small Business Regulatory Information collection requirements Enforcement Fairness Act (SBREFA) of associated with this final rule have been from preparation of an environmental assessment or environmental impact 1996 requires FAA to comply with approved previously by the Office of small entity requests for information or Management and Budget (OMB) under statement under the National Environmental Policy Act in the advice about compliance with statutes the provisions of the Paperwork and regulations within its jurisdiction. Reduction Act of 1995 (44 U.S.C. absence of extraordinary circumstances. The FAA has determined this A small entity with questions regarding 3507(d)) and have been assigned OMB this document, may contact its local Control Number 2120–0702. This final rulemaking action qualifies for the categorical exclusion identified in FAA official, or the person listed under rule requires that if a passenger carries the FOR FURTHER INFORMATION CONTACT a POC device on board the aircraft with paragraph 312f and involves no extraordinary circumstances. heading at the beginning of the the intent to use it during the flight, he preamble. To find out more about or she must inform the pilot in V. Executive Order Determinations SBREFA on the Internet, visit http:// command of that flight. Additionally, _ A. Executive Order 13132, Federalism www.faa.gov/regulations policies/ the passenger who plans to use the rulemaking/sbre_act/. device must provide a written statement The FAA has analyzed this signed by a licensed physician that immediately adopted final rule under List of Subjects in 14 CFR Part 121 verifies the passenger’s ability to operate the principles and criteria of Executive Air carriers, Aircraft, Airmen, the device, respond to any alarms, the Order 13132, Federalism. The agency Reporting and recordkeeping extent to which the passenger must use determined that this action will not requirements. the POC (all or a portion of the flight), have a substantial direct effect on the The Amendment and prescribes the maximum oxygen States, or the relationship between the flow rate. The Paperwork Reduction Act Federal Government and the States, or In consideration of the foregoing, the paragraph in the final rule that on the distribution of power and Federal Aviation Administration established SFAR 106 still applies to responsibilities among the various amends SFAR No. 106 to Chapter I of this amendment. The availability of a levels of government, and, therefore, title 14, Code of Federal Regulations as new POC device will likely increase the does not have Federalism implications. follows: availability and options for a passenger in need of oxygen therapy, but the B. Executive Order 13211, Regulations PART 121—OPERATING paperwork burden discussed in the That Significantly Affect Energy Supply, REQUIREMENTS: DOMESTIC, FLAG, original final rule is unchanged. Distribution, or Use AND SUPPLEMENTAL OPERATIONS Therefore, the OMB Control Number The FAA analyzed this immediately ■ 1. The authority citation for part 121 associated with this collection remains adopted final rule under Executive continues to read as follows: 2120–0702. Order 13211, Actions Concerning An agency may not conduct or Regulations that Significantly Affect Authority: 49 U.S.C. 106(f), 106(g), 40113, sponsor, and a person is not required to Energy Supply, Distribution, or Use 40119, 41706, 44101, 44701–44702, 44705, respond to, a collection of information (May 18, 2001). The agency has 44709–44711, 44713, 44716–44717, 44722, 46105. unless it displays a currently valid OMB determined that it is not a ‘‘significant ■ control number. energy action’’ under the executive 2. Amend SFAR 106 by revising order and it is not likely to have a sections 2 and 3(a) introductory text to F. International Compatibility and read as follows: Cooperation significant adverse effect on the supply, distribution, or use of energy. In keeping with U.S. obligations Special Federal Aviation Regulation under the Convention on International VI. How To Obtain Additional 106—Rules for Use of Portable Oxygen Civil Aviation, it is FAA policy to Information Concentrator Systems on Board conform to International Civil Aviation Aircraft A. Rulemaking Documents Organization (ICAO) Standards and * * * * * Recommended Practices to the An electronic copy of a rulemaking Section 2. Definitions—For the maximum extent practicable. The FAA document may be obtained by using the purposes of this SFAR the following has determined that there are no ICAO Internet— definitions apply: Portable Oxygen

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Concentrator: means the AirSep DEPARTMENT OF TRANSPORTATION United States Code. This rulemaking is FreeStyle, AirSep LifeStyle, AirSep promulgated under the authority Focus, AirSep Freestyle 5, Delphi RS– Federal Aviation Administration described in 49 U.S.C. 106(f), which 00400, DeVilbiss Healthcare iGo, Inogen establishes the authority of the One, Inogen One G2, Inogen One G3, 14 CFR Parts 121, 125, and 135 Administrator to promulgate regulations and rules and 49 U.S.C. 44701(a)(5), Inova Labs LifeChoice, Inova Labs [Docket No.: FAA–2012–1059; Amdts. No.: LifeChoice Activox, International 121–368, 125–63, 135–128] which requires the Administrator to Biophysics LifeChoice, Invacare XPO2, promulgate regulations and minimum Invacare Solo2, Oxlife Independence RIN 2120–AK11 standards for other practices, methods, and procedures necessary for safety in Oxygen Concentrator, Oxus RS–00400, Minimum Altitudes for Use of air commerce and national security. Precision Medical EasyPulse, Autopilots This amendment to the regulation is Respironics EverGo, Respironics within the scope of that authority AGENCY: Federal Aviation SimplyGo, SeQual Eclipse, SeQual because it prescribes an accepted Administration (FAA), DOT. eQuinox Oxygen System (model 4000), method for ensuring the safe operation SeQual Oxywell Oxygen System (model ACTION: Final rule. of aircraft while using autopilot 4000), SeQual SAROS and VBOX systems. Trooper Oxygen Concentrator medical SUMMARY: This rulemaking amends and device units as long as those medical harmonizes minimum altitudes for use I. Overview of Final Rule device units: (1) Do not contain of autopilots for transport category The FAA amends and harmonizes airplanes; it also enables the operational hazardous materials as determined by minimum altitudes for use of autopilots use of advanced autopilot and the Pipeline and Hazardous Materials for transport category airplanes in order navigation systems by incorporating the Safety Administration; (2) are also to streamline and simplify these capabilities of current and future operational rules. This final rule enables regulated by the Food and Drug autopilots, flight guidance systems, and Administration; and (3) assist a user of the operational use of advanced Global Navigation Satellite System autopilot and navigation systems by medical oxygen under a doctor’s care. (GNSS) guidance systems while These units perform by separating incorporating the capabilities of existing protecting the continued use of legacy and future autopilots, flight guidance oxygen from nitrogen and other gases systems at current autopilot minimum systems, and GNSS guidance systems contained in ambient air and dispensing use altitudes. Additionally, this final while protecting the continued use of it in concentrated form to the user. rule implements a performance-based legacy systems. This allows the FAA to Section 3. Operating Requirements— approach, using the certified enable the benefits of Next Generation capabilities of autopilot systems as (a) No person may use and no aircraft Air Transportation System (NextGen) established by the Airplane Flight operator may allow the use of any technologies and procedures (Optimized Manual (AFM) or as approved by the Profile Descents, Performance Based portable oxygen concentrator device, Administrator. except the AirSep FreeStyle, AirSep Navigation (PBN)) to enhance aviation safety in the National Airspace System LifeStyle, AirSep Focus, AirSep DATES: Effective April 4, 2014. (NAS). This final rule also gives the FreeStyle 5, Delphi RS–00400, DeVilbiss ADDRESSES: For information on where to obtain copies of rulemaking documents FAA Administrator the authorization to Healthcare iGo, Inogen One, Inogen One require an altitude higher than the AFM and other information related to this G2, Inogen One G3, Inova Labs if the Administrator believes it to be in final rule, see ‘‘How To Obtain LifeChoice, Inova Labs LifeChoice the interest of public safety. Activox, International Biophysics Additional Information’’ section of this Currently, operators have a choice LifeChoice, Invacare XPO2, Invacare document. whether or not to update their aircraft Solo2, Oxlife Independence Oxygen FOR FURTHER INFORMATION CONTACT: For with new autopilots as they are Concentrator, Oxus RS–00400, Precision technical questions concerning this developed and certified by equipment Medical EasyPulse, Respironics EverGo, action, contact Kel O. Christianson, manufacturers. This final rule does not Respironics SimplyGo, SeQual Eclipse, FAA, Aviation Safety Inspector, affect this decision-making process and SeQual eQuinox Oxygen System (model Performance Based Flight Systems protects operators to continue operating 4000), SeQual Oxywell Oxygen System Branch (AFS–470), Flight Standards as they do today. As a result, this action (model 4000), SeQual SAROS and Service, Federal Aviation does not impose any additional costs on VBOX Trooper Portable Oxygen Administration, 800 Independence certificate holders that operate under Concentrator units. These units may be Avenue SW., Washington, DC 20591; parts 121, 125, or 135. Also, by setting telephone 202–385–4702; email carried on and used by a passenger on new minimum altitudes for each phase [email protected]. board an aircraft provided the aircraft of flight that approved equipment may For legal questions concerning this operate to, this final rule gives operator ensures that the following action, contact Robert H. Frenzel, conditions are satisfied: manufacturers more certainty that new Manager, Operations Law Branch, Office products can be used as they are * * * * * of the Chief Counsel, Regulations developed. Issued under authority provided by 49 Division (AGC–220), Federal Aviation In response to Executive Order 13563 U.S.C. 106(f) and 44701(a)(5) in Washington, Administration, 800 Independence issued by President Obama on January DC, on December 23, 2013. Avenue SW., Washington, DC 20591; 18, 2011, this rule was identified for Michael P. Huerta, telephone 202–267–3073; email inclusion in the Department of [email protected]. Transportation Retrospective Regulatory Administrator. SUPPLEMENTARY INFORMATION: Review (May 2011), noting that the [FR Doc. 2014–02121 Filed 1–31–14; 8:45 am] current minimum altitudes for use of BILLING CODE 4910–13–P Authority for This Rulemaking autopilots were unduly restrictive and The FAA’s authority to issue rules on would limit the ability to use new aviation safety is found in Title 49 of the technologies. On May 10, 2012,

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President Obama signed Executive Specification (OpSpec), which was E. General Overview of Comments Order 13610, establishing the implemented as a stopgap measure. The The FAA received 3 public Retrospective Regulatory Review as an rule itself was not changed to provide comments. The National Business on-going obligation. The final rule is manufacturers and operators the Aviation Association (NBAA) provided consistent with the requirement in guidance for producing and operating one comment supporting the rule. The Executive Order 13610 to modify or new aircraft capable of attaining lower second commenter focused on the streamline regulations ‘‘in light of autopilot minimum use altitudes. The definitions and terms used in the changed circumstances, including the amendment also failed to address regulatory text and the third commenter rise of new technologies.’’ autopilot minimum use altitudes on requested a clarification of the II. Background instrument approaches or harmonize 14 regulatory text. CFR parts 121, 125 and 135. A. Statement of the Problem III. Discussion of Public Comments and C. ARAC Efforts To Amend Autopilots Final Rule The FAA and Civil Aeronautics Rules Administration (CAA) (the predecessor A. Revise Minimum Altitudes for Use of to the FAA) technical standards for Since 1997, multiple groups have Autopilot (§ 121.579, 125.329 and autopilot systems date back to 1947. been formed to review current 135.93) These standards have been revised eight regulations and autopilot technologies. A commenter suggested that times since 1959, but the operating rules The FAA Transport Airplane Directorate Threshhold Elevation (THRE) be added for autopilot minimum use altitudes in initiated an effort under the ARAC to the definition of TDZE to read, 14 Code of Federal Regulations (14 CFR) Flight Guidance Harmonization ‘‘touchdown zone/threshold elevation’’ §§ 121.579, 125.329, and 135.93 have Working Group to evaluate the status of (TDZE). The suggestion was made based not been amended in any significant current autopilot technologies, rules and on the fact that, at the time of the way since the recodification of the Civil guidance along with the harmonization NPRM, TDZEs were being replaced with Aviation Regulations (CAR) and Civil of U.S. policy and guidance with the THREs on instrument approach plates Aviation Manuals (CAM) on December Joint Aviation Authorities. Later, the (IAPs) in the NAS. This resulted in 31, 1964. Performance-based operations Aviation instrument approach plates published By contrast, autopilot certification Rulemaking Committee, which with either a TDZE or THRE. The standards contained in 14 CFR 25.1329 established the Autopilot Minimum Use comment was suggested so that the rule were updated as recently as April 11, Height (MUH) action team, evaluated would reference both terms, thus 2006. Consequently, operational autopilot minimum use altitudes and allowing both terms to be used by the regulations in parts 121, 125, and 135 made recommendations to the Associate pilots as a reference for adding the do not adequately reflect the capabilities Administrator for Aviation Safety. The applicable altitudes or heights of modern technologies in use today and team was specifically tasked with published in the AFM. thus make it difficult to keep pace with developing recommendations to address The policy to change TDZE to THRE the FAA’s implementation of NextGen. progress in the area of PBN and the has been rescinded. TDZE will now be the standard and will replace THRE on B. History subsets of area navigation (RNAV) and required navigation performance (RNP) IAPs that are currently published with The FAA published an NPRM in the operations. The team’s conclusions THRE. Based on this, the FAA has Federal Register on December 9, 1994 aligned with the previous groups’ decided that TDZE will remain the only (59 FR 63868) based on a acknowledgement that §§ 121.579, term used in this final rule. As a result, recommendation from the Autopilot 125.329 and 135.93 were outdated and this final rule will allow operators to Engagement Working Group of the recommended new rulemaking to take add the applicable altitudes or heights Aviation Rulemaking Advisory advantage of advancements in modern published in the AFM to the airport Committee (ARAC) to change the aircraft technologies and the certified elevation and TDZE published on the existing rules concerning engagement of capabilities of autopilot systems to instrument approach plate. This will autopilots during takeoff. The ARAC create a performance-based structure to provide a standard reference for all determined that the increased use of an aid in the implementation of NextGen operators and manufacturers using and autopilot during takeoff would enhance flight operations. producing Flight Management Systems aviation safety by giving pilots greater (FMS). situational awareness of what was going D. Summary of the NPRM The third commenter suggested on inside and outside of the aircraft. clarifying the regulatory text as it related This benefit would be realized by The FAA published an NPRM in the to the base minimum use altitude for an reducing the task loading required to Federal Register on December 4, 2012 approach and how §§ 91.175 and 91.155 manually fly the aircraft during the (77 FR 71735), proposing to enable the weather conditions are used when critical takeoff phase of flight. The FAA operational use of advanced autopilot applying autopilot minimums. The FAA received seven comments in response to and navigation systems by incorporating agrees with the comment and has the NPRM, and all commenters the capabilities of current and future clarified this particular section. supported an amendment to the rule. autopilots, flight guidance systems, and Specifically, the FAA has realigned the In 1997, the FAA amended GNSS guidance systems while regulatory text and placed into separate §§ 121.579, 125.329, and 135.93 to protecting the continued use of legacy paragraphs the specific conditions that permit certificate holders the use of an systems. The NPRM proposed to must be met in order to apply the approved autopilot system for takeoff, accomplish this through a performance- autopilot minimums. based on the 1994 NPRM and an based approach, using the certified This final rule is a complete rewrite expectation that autopilot technology capabilities of autopilot systems as of §§ 121.579, 125.329 and 135.93. The would continue to advance (62 FR established by the Airplane Flight language in each section of the 27922; May 21, 1997). This Manual (AFM) or as approved by the regulations is identical except for an authorization was given to certificate Administrator. The comment period additional paragraph in § 135.93 holders through an Operations closed on February 4, 2013. exempting rotorcraft. This final rule

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harmonizes these three parts of 14 CFR rule also gives the Administrator the operator has an approved autopilot that because this final rule is based on the authority to use OpSpecs to authorize a can fly a coupled approach, ILS or other performance capabilities of the lower minimum engagement altitude on than the ILS, it may use the AFM equipment being utilized, not the takeoff, which must be specified in the specified ‘‘altitude loss’’ or operating certificate held. Nothing in AFM. Administrator directed height as the this final rule will prevent or adversely This final rule retains the same basis for disconnecting the autopilot on affect the continued safe operation of minimum altitudes for all aircraft to the approach. In instrument flight rules aircraft using legacy navigation systems. protect legacy systems and introduces (IFR) conditions or operations in less Furthermore, this action defines the ability to use a lower engagement than visual flight rules (VFR), the altitude references for the different altitude on takeoff/initial climb based aircraft is below the MDA or DA and phases of flight, whereas the original upon the certified limits of the autopilot pilot has § 91.175 references, the rule defined all altitudes with reference as specified in the AFM. This final rule disengage height remains ‘‘altitude loss to terrain. Altitudes for takeoff/initial also gives the Administrator the plus 50 ft.’’ In VFR conditions, the climb and go-around/missed approach authority to specify an altitude above, operator may use the ‘‘altitude loss’’ as are defined as above the airport but not below, that specified in the the disengage height or 50 ft., whichever elevation. Altitudes for enroute AFM. is higher. This final rule allows the operations are defined as above terrain As a result, this final rule establishes aircraft to be used down to a lower elevation. Altitudes used for approach the AFM as a performance-based minimum use height based on the AFM are defined as being above Touchdown standard by which a certificate holder limitation and the ability of the pilot to Zone Elevation (TDZE). If the altitude is may be authorized for operations immediately recognize a possible in reference to a Decision Altitude/ through its OpSpecs. Once an autopilot deviation by using visual Height (DA(H)) or Minimum Descent autopilot’s capabilities and limitations references outside the aircraft. Altitude (MDA), the altitude will be are certified and reflected in the AFM, No other comments were received on defined in relation to the DA(H) or MDA a certificate holder may request a these three sections and they are itself (e.g. 50 ft. below DA(H)). Upon change to its OpSpecs to authorize use adopted as proposed. Sections further review of the proposed of the new autopilot minimum use 121.579(d), 125.329(d), and 135.93(d) regulatory text, the FAA is removing altitude specified in the AFM. No appear in the final rule with the changes subparagraph (a)(4) from each of these comments were received on these three as described for paragraphs (d)(1). sections. The language ‘‘Altitudes sections and they are adopted as E. Go Around/Missed Approach defined as being above airport elevation, proposed. (§§ 121.579(e), 125.329(e) and 135.93(e)) TDZE or terrain are above ground level (AGL)’’ as proposed in the NPRM is C. Enroute (§§ 121.579(c), 125.329(c) The final rule provides guidance for redundant. The provisions defining the and 135.93(c)) executing a missed approach/go-around altitude references in subparagraphs The enroute paragraph of the current that the current rule lacks. This (a)(1), (a)(2) and (a)(3) are sufficient to rule specifies a minimum use altitude of guidance is first presented in the define the elevations that will be used 500 ft. above terrain, or an altitude that approach paragraph, wherein an aircraft to calculate the autopilot minimum use is no lower than twice the autopilot does not need to comply with the height/altitude for each phase of flight. altitude loss specified in the AFM, autopilot minimum use altitude of that This final rule is formatted to model whichever is higher, for all operations. paragraph provided it is executing a the actual phases of flight: takeoff This final rule maintains the same base coupled missed approach/go-around. A through landing or go-around/missed minimum use altitude as the current new subparagraph provides guidance on approach. Each paragraph in this final rule, while granting the Administrator when the autopilot can be engaged on rule has a base minimum autopilot use the authority to specify a higher altitude the missed approach/go-around when altitude for the intended phase of flight if required by an operational or safety accomplished. that all aircraft may utilize. In order to related need. No comments were received on these protect the use of all legacy systems, the No comments were received on these three sections and they are adopted as base altitudes will remain identical to three sections and they are adopted as proposed. the altitudes in the current rule. Lower proposed. F. Landing (§§ 121.579(f), 125.329(f) and minimum use altitudes are based on D. Approach (§§ 121.579(d), 125.329(d), 135.93(f)) certification of the autopilot system and 135.93(d)) limitations found in the AFM. The The last paragraph in this final rule enroute minimum use altitude will not The base minimum use altitude for an provides guidance for landing. Current change from the current rule. approach in this final rule will remain language authorizes the Administrator, Additionally, the minimum use altitude the same as the current rule. Aircraft through OpSpecs, to allow an aircraft to in each paragraph can be raised by the with a specified height loss may use an touchdown with the autopilot engaged Administrator if warranted by an autopilot no lower than 50 ft. below the using an approved autoland flight operational or safety need. DA (H) or MDA or twice the altitude guidance system. This authorization No other comments were received on loss specified in the AFM, whichever is relies upon an ILS to meet this these three sections and they are greater. The current rule allows for requirement. This final rule states that adopted as proposed. exceptions to this altitude with the use minimum use altitudes do not apply to of a coupled autopilot, instrument autopilot operations when an approved B. Takeoff and Initial Climb (§§ 121.579 landing system (ILS), and specified and authorized landing system mode is (b), 125.329(b) and 135.93(b)) reported weather conditions. being used for landing. This final rule The current rule defines the base This final rule is written to allow will not limit approved landing systems minimum altitude at which all aircraft current operators the ability to operate to ground based systems. This action may engage the autopilot after takeoff as as they do now (thereby protecting will allow new performance based 500 ft. or double the autopilot altitude legacy systems), while also allowing landing systems to be approved and loss (as specified in the AFM) above the operators with updated systems to attain implemented for autoland operations as terrain, whichever is higher. The current lower minimum use heights. If an they become available.

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No comments were received on these will allow operators to more readily defined in DOT’s Regulatory Policies three sections and they are adopted as utilize the capabilities of future and Procedures. proposed. autopilots, flight guidance systems, and B. Regulatory Flexibility Determination GNSS guidance systems as they are G. Rotorcraft Operations (§ 135.93(g)) developed. These new capabilities The Regulatory Flexibility Act of 1980 The current rule expressly excludes accelerate the benefits of NextGen (Pub. L. 96–354) (RFA) establishes ‘‘as a rotorcraft operations from the minimum technologies and procedures that principle of regulatory issuance that altitudes for use of autopilots. This final depend upon auto flight guidance agencies shall endeavor, consistent with rule continues to exclude rotorcraft systems to enhance aviation safety in the objectives of the rule and of operations. the NAS. If operators pursue the lower applicable statutes, to fit regulatory and No comments were received on minimum altitudes based on their informational requirements to the scale § 135.93(g), and it appears as proposed. autopilots’ certification, they will of the businesses, organizations, and realize benefits from increased ability to governmental jurisdictions subject to IV. Regulatory Notices and Analyses operate. regulation. To achieve this principle, A. Regulatory Evaluation agencies are required to solicit and Costs consider flexible regulatory proposals Changes to Federal regulations must This final rule specifies autopilot and to explain the rationale for their undergo several economic analyses. minimum use altitudes for parts 121, actions to assure that such proposals are First, Executive Order 12866 directs that 125 and 135 operators. This final rule is given serious consideration’’. The RFA each Federal agency shall propose or based on the capabilities of the aircraft covers a wide-range of small entities, adopt a regulation only upon a reasoned and the minimum use altitudes or lack including small businesses, not-for- determination that the benefits of the of minimum use altitudes published in profit organizations, and small intended regulation justify its costs. the AFM. This final rule does not affect governmental jurisdictions. Second, the Regulatory Flexibility Act the minimum use altitudes presently Agencies must perform a review to of 1980 (Pub. L. 96–354) requires used by operators in the NAS. Operators determine whether a rule will have a agencies to analyze the economic have the option to operate as they significant economic impact on a impact of regulatory changes on small currently do or pursue the proposed substantial number of small entities. If entities. Third, the Trade Agreements lower minimum use altitudes based on the agency determines that it will, the Act (Pub. L. 96–39) prohibits agencies their aircraft’s autopilot certification. agency must prepare a regulatory from setting standards that create Operators with approved autopilots and flexibility analysis as described in the unnecessary obstacles to the foreign wishing to immediately achieve the RFA. However, if an agency determines commerce of the United States. In lower minimum use altitudes may incur that a rule is not expected to have a developing U.S. standards, this Trade the cost of accelerated training. This significant economic impact on a Act requires agencies to consider voluntary accelerated training cost is a substantial number of small entities, international standards and, where change in present value, but not in total section 605(b) of the RFA provides that appropriate, that they be the basis of cost, because this type of training would the head of the agency may so certify U.S. standards. Fourth, the Unfunded have occurred in the future. and a regulatory flexibility analysis is Mandates Reform Act of 1995 (Pub. L. Additionally, operators will not incur not required. The certification must 104–4) requires agencies to prepare a certification costs for aircraft, avionics include a statement providing the written assessment of the costs, benefits, equipment, autopilot and flight factual basis for this determination, and and other effects of proposed or final management systems that have already the reasoning should be clear. rules that include a Federal mandate been certificated. Also, by setting new In the initial regulatory flexibility likely to result in the expenditure by minimum altitudes for each phase of analysis, the FAA stated the rule would State, local, or tribal governments, in the flight that approved equipment might not impose additional cost, because aggregate, or by the private sector, of operate to, this final rule gives operators could choose to operate as $100 million or more annually (adjusted manufacturers more certainty that new they currently do. The FAA did not for inflation with base year of 1995). products can be used as they are receive any public comments in This portion of the preamble developed. response or contradiction to this summarizes the FAA’s analysis of the The FAA recognizes that autopilots in finding. Therefore, as provided in economic impacts of this final rule. some older airplanes are not approved section 605(b), the head of the FAA Department of Transportation Order to utilize the lower minimum use certifies that this rulemaking will not DOT 2100.5 prescribes policies and altitudes. These operators will not incur result in a significant economic impact procedures for simplification, analysis, any additional costs unless they seek on a substantial number of small and review of regulations. If the new autopilot certifications. However, entities. expected cost impact is so minimal that the FAA does not believe the majority a proposed or final rule does not of operators of older aircraft will seek to C. International Trade Impact warrant a full evaluation, this order modify their aircraft in order to be Assessment permits that a statement to that effect, approved for the lower minimum use The Trade Agreements Act of 1979 and the basis for it, be included in the altitudes. The FAA did not receive any (Pub. L. 96–39), as amended by the preamble if a full regulatory evaluation public comments in response or Uruguay Round Agreements Act (Pub. of the cost and benefits is not prepared. contradiction to these findings. Due to L. 103–465), prohibits Federal agencies A full regulatory evaluation was not the voluntary provisions of the rule, from establishing standards or engaging prepared for this final rule. The there are no quantifiable cost in related activities that create reasoning for this determination reductions. unnecessary obstacles to the foreign follows: The FAA has, therefore, determined commerce of the United States. that this final rule does not qualify as a Pursuant to these Acts, the Benefits ‘‘significant regulatory action’’ as establishment of standards is not This final rule incorporates the defined in section 3(f) of Executive considered an unnecessary obstacle to capabilities of current autopilots and Order 12866, and is not ‘‘significant’’ as the foreign commerce of the United

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States, so long as the standard has a this action would have no effect on B. Comments Submitted to the Docket legitimate domestic objective, such as international regulatory cooperation. Comments received may be viewed by the protection of safety, and does not G. Environmental Analysis going to http://www.regulations.gov and operate in a manner that excludes following the online instructions to FAA Order 1050.1E identifies FAA imports that meet this objective. The search the docket number for this actions that are categorically excluded statute also requires consideration of action. Anyone is able to search the from preparation of an environmental international standards and, where electronic form of all comments assessment or environmental impact appropriate, that they be the basis for received into any of the FAA’s dockets statement under the National U.S. standards. The FAA has assessed by the name of the individual Environmental Policy Act in the the potential effect of this final rule and submitting the comment (or signing the absence of extraordinary circumstances. determined that it is relieving, thus will comment, if submitted on behalf of an not create unnecessary obstacles to the The FAA has determined this association, business, labor union, etc.). foreign commerce of the United States. rulemaking action qualifies for the categorical exclusion identified in C. Small Business Regulatory D. Unfunded Mandates Assessment paragraph 312f and involves no Enforcement Fairness Act Title II of the Unfunded Mandates extraordinary circumstances. The Small Business Regulatory Reform Act of 1995 (Pub. L. 104–4) V. Executive Order Determinations Enforcement Fairness Act (SBREFA) of requires each Federal agency to prepare 1996 requires FAA to comply with a written statement assessing the effects A. Executive Order 13132, Federalism small entity requests for information or of any Federal mandate in a proposed or The FAA has analyzed this final rule advice about compliance with statutes final agency rule that may result in an under the principles and criteria of and regulations within its jurisdiction. expenditure of $100 million or more (in Executive Order 13132, Federalism. The A small entity with questions regarding 1995 dollars) in any one year by State, agency determined that this action will this document, may contact its local local, and tribal governments, in the not have a substantial direct effect on FAA official, or the person listed under aggregate, or by the private sector; such the States, or the relationship between the FOR FURTHER INFORMATION CONTACT a mandate is deemed to be a ‘‘significant the Federal Government and the States, heading at the beginning of the regulatory action.’’ The FAA currently or on the distribution of power and preamble. To find out more about uses an inflation-adjusted value of responsibilities among the various SBREFA on the Internet, visit http:// $143.1 million in lieu of $100 million. levels of government, and, therefore, www.faa.gov/regulations_policies/ This final rule does not contain such a does not have Federalism implications. rulemaking/sbre_act/. mandate; therefore, the requirements of Title II of the Act do not apply. B. Executive Order 13211, Regulations List of Subjects That Significantly Affect Energy Supply, E. Paperwork Reduction Act 14 CFR Part 121 Distribution, or Use The Paperwork Reduction Act of 1995 Air carriers, Aircraft, Airmen, The FAA analyzed this final rule Aviation safety, Safety, Transportation. (44 U.S.C. 3507(d)) requires that the under Executive Order 13211, Actions FAA consider the impact of paperwork Concerning Regulations that 14 CFR Part 125 and other information collection Significantly Affect Energy Supply, Aircraft, Airmen, Aviation safety. burdens imposed on the public. The Distribution, or Use (May 18, 2001). The FAA has determined that there is no agency has determined that it is not a 14 CFR Part 135 new requirement for information ‘‘significant energy action’’ under the collection associated with this final Air taxis, Aircraft, Airmen, Aviation executive order and it is not likely to safety. rule. have a significant adverse effect on the F. International Compatibility supply, distribution, or use of energy. The Amendment In consideration of the foregoing, the In keeping with U.S. obligations VI. How To Obtain Additional Federal Aviation Administration under the Convention on International Information amends chapter I of title 14, Code of Civil Aviation, it is FAA policy to A. Rulemaking Documents Federal Regulations as follows: conform to International Civil Aviation Organization (ICAO) Standards and An electronic copy of a rulemaking PART 121—OPERATING Recommended Practices to the document may be obtained by using the REQUIREMENTS: DOMESTIC, FLAG, maximum extent practicable. The FAA Internet— AND SUPPLEMENTAL OPERATIONS has determined that there are no ICAO 1. Search the Federal eRulemaking Standards and Recommended Practices Portal (http://www.regulations.gov); ■ 1. The authority citation for part 121 that correspond to these proposed 2. Visit the FAA’s Regulations and continues to read as follows: regulations. Policies Web page at http:// _ Authority: 49 U.S.C. 106(f), 106(g), 40113, Executive Order 13609, Promoting www.faa.gov/regulations policies/or 40119, 41706, 44101, 44701–44702, 44705, International Regulatory Cooperation, 3. Access the Government Printing 44709–44711, 44713, 44716–44717, 44722, promotes international regulatory Office’s Web page at http:// 46105. cooperation to meet shared challenges www.gpo.gov/fdsys/. ■ 2. Revise § 121.579 to read as follows: involving health, safety, labor, security, Copies may also be obtained by environmental, and other issues and to sending a request (identified by notice, § 121.579 Minimum altitudes for use of reduce, eliminate, or prevent amendment, or docket number of this autopilot. unnecessary differences in regulatory rulemaking) to the Federal Aviation (a) Definitions. For purpose of this requirements. The FAA has analyzed Administration, Office of Rulemaking, section— this action under the policies and ARM–1, 800 Independence Avenue (1) Altitudes for takeoff/initial climb agency responsibilities of Executive SW., Washington, DC 20591, or by and go-around/missed approach are Order 13609, and has determined that calling (202) 267–9680. defined as above the airport elevation.

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(2) Altitudes for enroute operations (2) For autopilots with AFM specified (3) Altitudes for approach are defined are defined as above terrain elevation. approach altitude limitations, the as above the touchdown zone elevation (3) Altitudes for approach are defined greater of— (TDZE), unless the altitude is as above the touchdown zone elevation (i) The minimum use altitude specifically in reference to DA (H) or (TDZE), unless the altitude is specified for the coupled approach MDA, in which case the altitude is specifically in reference to DA (H) or mode selected; defined by reference to the DA(H) or MDA, in which case the altitude is (ii) 50 feet; or MDA itself. defined by reference to the DA(H) or (iii) An altitude specified by (b) Takeoff and initial climb. No MDA itself. Administrator. person may use an autopilot for takeoff (b) Takeoff and initial climb. No (3) For autopilots with an AFM or initial climb below the higher of 500 person may use an autopilot for takeoff specified negligible or zero altitude loss feet or an altitude that is no lower than or initial climb below the higher of 500 for an autopilot approach mode twice the altitude loss specified in the feet or an altitude that is no lower than malfunction, the greater of— Airplane Flight Manual (AFM), except twice the altitude loss specified in the (i) 50 feet; or as follows— Airplane Flight Manual (AFM), except (ii) An altitude specified by (1) At a minimum engagement as follows— Administrator. altitude specified in the AFM; or (1) At a minimum engagement (4) If executing an autopilot coupled (2) At an altitude specified by the altitude specified in the AFM; or go-around or missed approach using a Administrator, whichever is greater. (2) At an altitude specified by the certificated and functioning autopilot in (c) Enroute. No person may use an Administrator, whichever is greater. accordance with paragraph (e) in this autopilot enroute, including climb and (c) Enroute. No person may use an section. descent, below the following— autopilot enroute, including climb and (e) Go-Around/Missed Approach. No (1) 500 feet; descent, below the following— person may engage an autopilot during (2) At an altitude that is no lower than (1) 500 feet; a go-around or missed approach below twice the altitude loss specified in the (2) At an altitude that is no lower than the minimum engagement altitude AFM for an autopilot malfunction in twice the altitude loss specified in the specified for takeoff and initial climb in cruise conditions; or (3) At an altitude specified by the AFM for an autopilot malfunction in paragraph (b) in this section. An cruise conditions; or Administrator, whichever is greater. autopilot minimum use altitude does (d) Approach. No person may use an (3) At an altitude specified by the not apply to a go-around/missed autopilot at an altitude lower than 50 Administrator, whichever is greater. approach initiated with an engaged feet below the DA(H) or MDA for the (d) Approach. No person may use an autopilot. Performing a go-around or instrument procedure being flown, autopilot at an altitude lower than 50 missed approach with an engaged except as follows— feet below the DA(H) or MDA for the autopilot must not adversely affect safe (1) For autopilots with an AFM instrument procedure being flown, obstacle clearance. specified altitude loss for approach except as follows— (f) Landing. Notwithstanding operations— (1) For autopilots with an AFM paragraph (d) of this section, autopilot (i) An altitude no lower than twice the specified altitude loss for approach minimum use altitudes do not apply to specified altitude loss if higher than 50 operations— autopilot operations when an approved feet below the MDA or DA(H); (i) An altitude no lower than twice the automatic landing system mode is being (ii) An altitude no lower than 50 feet specified altitude loss if higher than 50 used for landing. Automatic landing higher than the altitude loss specified in feet below the MDA or DA(H); systems must be authorized in an the AFM, when the following (ii) An altitude no lower than 50 feet operations specification issued to the conditions are met— higher than the altitude loss specified in operator. (A) Reported weather conditions are the AFM, when the following less than the basic VFR weather conditions are met— PART 125—CERTIFICATION AND conditions in § 91.155 of this chapter; (A) Reported weather conditions are OPERATIONS: AIRPLANES HAVING A (B) Suitable visual references less than the basic VFR weather SEATING CAPACITY OF 20 OR MORE specified in § 91.175 of this chapter conditions in § 91.155 of this chapter; PASSENGERS OR A MAXIMUM have been established on the instrument (B) Suitable visual references PAYLOAD CAPACITY OF 6,000 approach procedure; and specified in § 91.175 of this chapter POUNDS OR MORE; AND RULES (C) The autopilot is coupled and have been established on the instrument GOVERNING PERSONS ON BOARD receiving both lateral and vertical path approach procedure; and SUCH AIRCRAFT references; (C) The autopilot is coupled and (iii) An altitude no lower than the receiving both lateral and vertical path ■ 3. The authority citation for part 125 higher of the altitude loss specified in references; is revised to read as follows: the AFM or 50 feet above the TDZE, (iii) An altitude no lower than the Authority: 49 U.S.C. 106(f), 106(g), 40113, when the following conditions are higher of the altitude loss specified in 44701–44702, 44705, 44710–44711, 44713, met— the AFM or 50 feet above the TDZE, 44716–44717, 44722. (A) Reported weather conditions are when the following conditions are ■ 4. Revise § 125.329 to read as follows: equal to or better than the basic VFR met— weather conditions in § 91.155 of this (A) Reported weather conditions are § 125.329 Minimum altitudes for use of chapter; and equal to or better than the basic VFR autopilot. (B) The autopilot is coupled and weather conditions in § 91.155 of this (a) Definitions. For purpose of this receiving both lateral and vertical path chapter; and section— references; or (B) The autopilot is coupled and (1) Altitudes for takeoff/initial climb (iv) A greater altitude specified by the receiving both lateral and vertical path and go-around/missed approach are Administrator. references; or defined as above the airport elevation. (2) For autopilots with AFM specified (iv) A greater altitude specified by the (2) Altitudes for enroute operations approach altitude limitations, the Administrator. are defined as above terrain elevation. greater of—

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(i) The minimum use altitude (b) Takeoff and initial climb. No (3) For autopilots with an AFM specified for the coupled approach person may use an autopilot for takeoff specified negligible or zero altitude loss mode selected; or initial climb below the higher of 500 for an autopilot approach mode (ii) 50 feet; or feet or an altitude that is no lower than malfunction, the greater of— (iii) An altitude specified by twice the altitude loss specified in the (i) 50 feet; or Administrator. Airplane Flight Manual (AFM), except (ii) An altitude specified by (3) For autopilots with an AFM as follows— Administrator. specified negligible or zero altitude loss (1) At a minimum engagement (4) If executing an autopilot coupled for an autopilot approach mode altitude specified in the AFM; or go-around or missed approach using a malfunction, the greater of— (2) At an altitude specified by the certificated and functioning autopilot in (i) 50 feet; or Administrator, whichever is greater. accordance with paragraph (e) in this (ii) An altitude specified by (c) Enroute. No person may use an section. Administrator. autopilot enroute, including climb and (e) Go-Around/Missed Approach. No (4) If executing an autopilot coupled descent, below the following— go-around or missed approach using a person may engage an autopilot during (1) 500 feet; a go-around or missed approach below certificated and functioning autopilot in (2) At an altitude that is no lower than accordance with paragraph (e) in this the minimum engagement altitude twice the altitude loss specified in the specified for takeoff and initial climb in section. AFM for an autopilot malfunction in (e) Go-Around/Missed Approach. No paragraph (b) in this section. An cruise conditions; or person may engage an autopilot during autopilot minimum use altitude does (3) At an altitude specified by the not apply to a go-around/missed a go-around or missed approach below Administrator, whichever is greater. the minimum engagement altitude approach initiated with an engaged (d) Approach. No person may use an autopilot. Performing a go-around or specified for takeoff and initial climb in autopilot at an altitude lower than 50 paragraph (b) in this section. An missed approach with an engaged feet below the DA(H) or MDA for the autopilot must not adversely affect safe autopilot minimum use altitude does instrument procedure being flown, not apply to a go-around/missed obstacle clearance. except as follows— (f) Landing. Notwithstanding approach initiated with an engaged (1) For autopilots with an AFM autopilot. Performing a go-around or paragraph (d) of this section, autopilot specified altitude loss for approach minimum use altitudes do not apply to missed approach with an engaged operations— autopilot must not adversely affect safe autopilot operations when an approved (i) An altitude no lower than twice the automatic landing system mode is being obstacle clearance. specified altitude loss if higher than 50 (f) Landing. Notwithstanding used for landing. Automatic landing feet below the MDA or DA(H); systems must be authorized in an paragraph (d) of this section, autopilot (ii) An altitude no lower than 50 feet minimum use altitudes do not apply to operations specification issued to the higher than the altitude loss specified in operator. autopilot operations when an approved the AFM, when the following automatic landing system mode is being (g) This section does not apply to conditions are met— operations conducted in rotorcraft. used for landing. Automatic landing (A) Reported weather conditions are systems must be authorized in an less than the basic VFR weather Issued under authority provided by 49 operations specification issued to the conditions in § 91.155 of this chapter; U.S.C. 106(f) and 44701(a)(5) in Washington, operator. (B) Suitable visual references DC, on December 24, 2013. specified in § 91.175 of this chapter Michael P. Huerta, PART 135—OPERATING Administrator. REQUIREMENTS: COMMUTER AND have been established on the instrument [FR Doc. 2014–02123 Filed 1–31–14; 8:45 am] ON DEMAND OPERATIONS AND RULE approach procedure; and GOVERNING PERSONS ON BOARD (C) The autopilot is coupled and BILLING CODE 4910–13–P SUCH AIRCRAFT receiving both lateral and vertical path references; ■ 5. The authority citation for part 135 (iii) An altitude no lower than the DEPARTMENT OF HEALTH AND continues to read as follows: higher of the altitude loss specified in HUMAN SERVICES the AFM or 50 feet above the TDZE, Authority: 49 U.S.C. 106(f), 106(g), 41706, Food and Drug Administration 40113, 44701–44702, 44705, 44709, 44711– when the following conditions are 44713, 44715–44717, 44722, 45101–45105. met— 21 CFR Part 17 ■ 6. Revise § 135.93 to read as follows: (A) Reported weather conditions are equal to or better than the basic VFR [Docket No. FDA–2014–N–0113] § 135.93 Minimum altitudes for use of weather conditions in § 91.155 of this autopilot. chapter; and Maximum Civil Money Penalty (a) Definitions. For purpose of this (B) The autopilot is coupled and Amounts; Civil Money Penalty section— receiving both lateral and vertical path Complaints (1) Altitudes for takeoff/initial climb references; or and go-around/missed approach are (iv) A greater altitude specified by the AGENCY: Food and Drug Administration, defined as above the airport elevation. Administrator. HHS. (2) Altitudes for enroute operations (2) For autopilots with AFM specified ACTION: Direct final rule. are defined as above terrain elevation. approach altitude limitations, the (3) Altitudes for approach are defined greater of— SUMMARY: The Food and Drug as above the touchdown zone elevation (i) The minimum use altitude Administration (FDA) is issuing a new (TDZE), unless the altitude is specified for the coupled approach regulation to adjust for inflation the specifically in reference to DA (H) or mode selected; maximum civil money penalty (CMP) MDA, in which case the altitude is (ii) 50 feet; or amounts for the various CMP authorities defined by reference to the DA(H) or (iii) An altitude specified by within our jurisdiction and to amend MDA itself. Administrator. the process for initiating certain CMP

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administrative actions. We are taking docket number, found in brackets in the FDA is amending this regulation to these actions to comply with the Federal heading of this document, into the permit the Chief Counsel to designate Civil Penalties Inflation Adjustment Act ‘‘Search’’ box and follow the prompts other FDA staff, such as those in FDA’s of 1990 (FCPIAA), as amended, and to and/or go to the Division of Dockets Center for Tobacco Products, to sign a streamline our internal processes. The Management, 5630 Fishers Lane, Rm. tobacco retailer CMP complaint. last CMP adjustment was published in 1061, Rockville, MD 20852. Based on FDA’s experience, the large the Federal Register of November 12, FOR FURTHER INFORMATION CONTACT: majority of the tobacco retailer 2008, and the FCPIAA requires Federal Jarilyn Dupont, Office of Policy, Food complaints to date have involved Agencies to adjust their CMPs at least and Drug Administration, 10903 New alleged violations of the requirement to once every 4 years. We are using direct Hampshire Ave., Silver Spring, MD not sell cigarettes and smokeless final rulemaking for these actions 20903, 301–796–4830. tobacco to any person younger than 18 because the Agency expects that there SUPPLEMENTARY INFORMATION: The last years of age or to verify age in will be no significant adverse comment CMP adjustment was published in the accordance with 21 CFR 1140.14(b). on the rule. We are concurrently Federal Register of November 12, 2008 These complaints have almost always proposing and soliciting comments on (73 FR 66750). been straightforward, they involve this rule. If significant adverse simple fact patterns, and they do not comments are received, we will I. Background require a complex legal analysis. Over withdraw this final rule and address the A. CMP Amounts time, such CMP complaints have comments in a subsequent final rule. increased in volume, and we anticipate FDA is amending § 17.2 (21 CFR 17.2) FDA will not provide additional that the volume will continue to be to update the maximum CMP amounts. opportunity for comment. relatively high. In general, FCPIAA requires Federal We have determined that, with certain DATES: This rule is effective June 18, Agencies to issue regulations to adjust limitations and controls, non-attorney 2014, without further notice, unless for inflation each CMP penalty provided staff outside OCC can carry out the FDA receives significant adverse by law within their jurisdiction. (28 function of reviewing the evidence and comment by April 21, 2014. If we U.S.C. 2461 note, as amended by the signing the tobacco retailer CMP receive no timely significant adverse Debt Collection Improvement Act of complaints in appropriate comments, we will publish a document 1996 (31 U.S.C. 3701)). FCPIAA directs circumstances. The proposed in the Federal Register before May 19, Agencies to adjust the CMP provided by amendment to § 17.5(a) would give this 2014, confirming the effective date of law by October 23, 1996, and to make decisionmaking authority to the Chief the direct final rule. If we receive any additional adjustments at least once Counsel, who could ensure the timely significant adverse comments, every 4 years thereafter. The authority to sign complaints is only we will publish a document in the adjustments are based on changes in the given to appropriate staff and under Federal Register withdrawing this cost of living, and the FCPIAA defines appropriate circumstances. Under the direct final rule before June 18, 2014. the cost of living adjustment as the proposal, the Chief Counsel would have ADDRESSES: You may submit comments, percentage (if any) for each civil the authority to set and revise identified by Docket No. FDA–2014–N– monetary penalty by which the limitations and controls, and to 0113, by any of the following methods. Consumer Price Index for the month of broaden, limit, or rescind any Electronic Submissions June of the calendar year preceding the authorizations to sign tobacco retailer adjustment, exceeds the Consumer Price CMP complaints. Submit electronic comments in the Index for the month of June of the The limitations could include, for following way: calendar year in which the amount of example, limiting the delegation to • Federal eRulemaking Portal: http:// such civil monetary penalty was last set situations where the CMP amount is www.regulations.gov. Follow the or adjusted pursuant to law (28 U.S.C. below a certain dollar value; the CMP instructions for submitting comments. 2461 note, section 5(b)). involves specified tobacco retailer charges that OCC has determined are Written Submissions FCPIAA also prescribes a rounding method based on the size of the penalty routine and predictable and do not Submit written submissions in the after the calculated increase, but states require a complex legal analysis; and following ways: that the adjustment of a CMP may not involve charges for which FDA has • Mail/Hand delivery/Courier (for exceed 10 percent of the penalty. developed OCC-approved templates, paper submissions): Division of Dockets FCPIAA defines a CMP as any penalty, parameters, and procedures. The Management (HFA–305), Food and Drug fine, or other sanction that is for a controls could include, for example, an Administration, 5630 Fishers Lane, Rm. specific monetary amount as provided audit or other quality review. 1061, Rockville, MD 20852. by Federal law; or has a maximum FDA is publishing this rule as a direct Instructions: All submissions received amount provided for by Federal law; final rule without prior proposal and must include the Agency name and and is assessed or enforced by an agency comment because we view these as Docket No. FDA–2014–N–0113 for this pursuant to Federal law; and is assessed noncontroversial amendments and rulemaking. All comments received may or enforced pursuant to an anticipate no significant adverse be posted without change to http:// administrative proceeding or a civil comment. This rule incorporates www.regulations.gov, including any action in the Federal Courts (28 U.S.C. requirements specifically set forth in the personal information provided. For 2461 note, section 3(2)). FCPIAA requiring FDA to issue a additional information on submitting regulation implementing inflation comments, see the ‘‘Comments’’ heading B. CMP Complaints adjustments for all its CMP provisions. of the SUPPLEMENTARY INFORMATION Currently, under § 17.5(a) (21 CFR These technical changes, required by section of this document. 17.5(a)), CMP complaints against law, do not substantively alter the Docket: For access to the docket to retailers of tobacco products may only existing regulatory framework, nor do read background documents or be signed by attorneys in FDA’s Office they in any way affect the terms under comments received, go to http:// of the Chief Counsel (OCC). Given the which CMPs are assessed by FDA. The www.regulations.gov and insert the routine nature of many of these CMPs, formula for the amount of the penalty

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adjustment is prescribed by Congress in V. Analysis of Impacts expenditure that would meet or exceed the FCPIAA, and these changes are not FDA has examined the impacts of the this amount. subject to the exercise of discretion by final rule under Executive Order 12866, VI. Comments FDA. The amendment to § 17.5(a) Executive Order 13563, the Regulatory changes an internal process. Flexibility Act (5 U.S.C. 601–612), and Interested persons may submit either This direct final rule: the Unfunded Mandates Reform Act of electronic comments regarding this • Revises the table in § 17.2 to adjust 1995 (Pub. L. 104–4). Executive Orders document to http://www.regulations.gov the maximum CMP amounts for 12866 and 13563 direct Agencies to or written comments to the Division of inflation as prescribed by FCPIAA. Dockets Management (see ADDRESSES). It • Revises § 17.5(a) to provide assess all costs and benefits of available regulatory alternatives and, when is only necessary to send one set of authority for the Chief Counsel to comments. Identify comments with the delegate the responsibility for initiating regulation is necessary, to select regulatory approaches that maximize docket number found in brackets in the a CMP administrative action against a heading of this document. Received tobacco retailer. net benefits (including potential economic, environmental, public health comments may be seen in the Division II. Environmental Impact and safety, and other advantages; of Dockets Management between 9 a.m. The Agency has determined under 21 distributive impacts; and equity). The and 4 p.m., Monday through Friday, and CFR 25.33 that this action is of a type Agency believes that this final rule is will be posted to the docket at http:// that does not individually or not a significant regulatory action under www.regulations.gov. cumulatively have a significant effect on Executive Order 12866. List of Subjects in 21 CFR Part 17 the human environment. Therefore, The Regulatory Flexibility Act neither an environmental assessment requires Agencies to analyze regulatory Administrative practice and nor an environmental impact statement options that would minimize any procedure, Penalties. significant impact of a rule on small is required. Therefore, under the Federal Food, entities. Because the final rule simply Drug, and Cosmetic Act and the Public III. Paperwork Reduction Act adjusts the maximum amount of CMPs Health Service Act, and under authority administered by FDA as required by the This final rule contains no collection delegated to the Commissioner of Food FCPIAA, and because the proposed rule of information. Therefore, clearance by and Drugs, 21 CFR part 17 is amended makes a change to FDA’s internal the Office of Management and Budget as follows: under the Paperwork Reduction Act of processes, the Agency certifies that the 1995 is not required. final rule will not have a significant PART 17—CIVIL MONEY PENALTIES economic impact on a substantial HEARINGS IV. Federalism number of small entities. FDA has analyzed this final rule in Section 202(a) of the Unfunded ■ 1. The authority citation for 21 CFR accordance with the principles set forth Mandates Reform Act of 1995 requires part 17 continues to read as follows: in Executive Order 13132. FDA has that Agencies prepare a written determined that the rule does not statement, which includes an Authority: 21 U.S.C. 331, 333, 337, 351, contain policies that have substantial assessment of anticipated costs and 352, 355, 360, 360c, 360f, 360i, 360j, 371; 42 U.S.C. 262, 263b, 300aa–28; 5 U.S.C. 554, direct effects on the States, on the benefits, before proposing ‘‘any rule that 555, 556, 557. relationship between the National includes any Federal mandate that may Government and the States, or on the result in the expenditure by State, local, ■ 2. Section 17.2 is revised to read as distribution of power and and tribal governments, in the aggregate, follows: responsibilities among the various or by the private sector, of $100,000,000 levels of government. Accordingly, the or more (adjusted annually for inflation) § 17.2 Maximum penalty amounts. Agency has concluded that the rule does in any one year.’’ The current threshold The following table shows maximum not contain policies that have after adjustment for inflation is $141 civil monetary penalties associated with federalism implications as defined in million, using the most current (2012) the statutory provisions authorizing the Executive order and, consequently, Implicit Price Deflator for the Gross civil monetary penalties under the a federalism summary impact statement Domestic Product. FDA does not expect Federal Food, Drug, and Cosmetic Act is not required. this final rule to result in any 1-year or the Public Health Service Act.

CIVIL MONETARY PENALTIES AUTHORITIES ADMINISTERED BY FDA AND ADJUSTED MAXIMUM PENALTY AMOUNTS

Former maximum Date of last Adjusted maximum U.S.C. Section penalty Assessment method penalty figure penalty amount amount or adjustment (in dollars) (in dollars)

21 U.S.C.

333(b)(2)(A) ...... 60,000 For each of the first two violations in any 10-year 2013 65,000. period. 333(b)(2)(B) ...... 1,200,000 For each violation after the second conviction in any 2013 1,275,000. 10-year period. 333(b)(3) ...... 120,000 Per violation...... 2013 130,000. 333(f)(1)(A) ...... 16,500 Per violation...... 2008 16,500 (not adjusted). 333(f)(1)(A) ...... 1,200,000 For the aggregate of violations ...... 2013 1,275,000. 333(f)(2)(A) ...... 55,000 Per individual...... 2013 60,000. 333(f)(2)(A) ...... 300,000 Per ‘‘any other person’’ ...... 2013 325,000. 333(f)(2)(A) ...... 600,000 For all violations adjudicated in a single proceeding 2013 650,000.

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CIVIL MONETARY PENALTIES AUTHORITIES ADMINISTERED BY FDA AND ADJUSTED MAXIMUM PENALTY AMOUNTS— Continued

Former maximum Date of last Adjusted maximum U.S.C. Section penalty Assessment method penalty figure penalty amount amount or adjustment (in dollars) (in dollars)

333(f)(3)(A) ...... 10,000 For all violations adjudicated in a single proceeding 2013 11,000. 333(f)(3)(B) ...... 10,000 For each day the violation is not corrected after a 2013 11,000. 30-day period following notification until the viola- tion is corrected. 333(f)(4)(A)(i) ...... 250,000 Per violation...... 2013 275,000. 333(f)(4)(A)(i) ...... 1,000,000 For all violations adjudicated in a single proceeding 2013 1,075,000. 333(f)(4)(A)(ii) ...... 250,000 For the first 30-day period (or any portion thereof) of 2013 275,000. continued violation following notification. 333(f)(4)(A)(ii) ...... 1,000,000 For any 30-day period, where the amount doubles 2013 1,075,000. for every 30-day period of continued violation after the first 30-day violation. 333(f)(4)(A)(ii) ...... 10,000,000 For all violations adjudicated in a single proceeding 2013 10,850,000. 333(f)(9)(A) ...... 15,000 Per violation...... 2009 15,000 (not adjusted). 333(f)(9)(A) ...... 1,000,000 For all violations adjudicated in a single proceeding 2013 1,050,000. 333(f)(9)(B)(i)(I) ...... 250,000 Per violation...... 2013 275,000. 333(f)(9)(B)(i)(I) ...... 1,000,000 For all violations adjudicated in a single proceeding 2013 1,050,000. 333(f)(9)(B)(i)(II) ...... 250,000 For the first 30-day period (or any portion thereof) of 2013 275,000. continued violation following notification. 333(f)(9)(B)(i)(II) ...... 1,000,000 For any 30-day period, where the amount doubles 2013 1,050,000. for every 30-day period of continued violation after the first 30-day violation. 333(f)(9)(B)(i)(II) ...... 10,000,000 For all violations adjudicated in a single proceeding 2013 10,525,000. 333(f)(9)(B)(ii)(I) ...... 250,000 Per violation...... 2013 275,000. 333(f)(9)(B)(ii)(I) ...... 1,000,000 For all violations adjudicated in a single proceeding 2013 1,050,000. 333(f)(9)(B)(ii)(II) ...... 250,000 For the first 30-day period (or any portion thereof) of 2013 275,000. continued violation following notification. 333(f)(9)(B)(ii)(II) ...... 1,000,000 For any 30-day period, where the amount doubles 2013 1,050,000. for every 30-day period of continued violation after the first 30-day violation. 333(f)(9)(B)(ii)(II) ...... 10,000,000 For all violations adjudicated in a single proceeding 2013 10,525,000. 333(g)(1) ...... 250,000 For the first violation in any 3-year period ...... 2013 275,000. 333(g)(1) ...... 500,000 For each subsequent violation in any 3-year period 2013 550,000. 333 note ...... 250 For the second violation (following a first violation 2009 250 (not adjusted). with a warning) within a 12-month period by a re- tailer with an approved training program. 333 note ...... 500 For the third violation within a 24-month period by a 2009 500 (not adjusted). retailer with an approved training program. 333 note ...... 2,000 For the fourth violation within a 24-month period by 2009 2,000 (not adjusted). a retailer with an approved training program. 333 note ...... 5,000 For the fifth violation within a 36-month period by a 2009 5,000 (not adjusted). retailer with an approved training program. 333 note ...... 10,000 For the sixth or subsequent violation within a 48- 2013 11,000. month period by a retailer with an approved train- ing program. 333 note ...... 250 For the first violation by a retailer without an ap- 2009 250 (not adjusted). proved training program. 333 note ...... 500 For the second violation within a 12-month period 2009 500 (not adjusted). by a retailer without an approved training program. 333 note ...... 1,000 For the third violation within a 24-month period by a 2013 1,100. retailer without an approved training program. 333 note ...... 2,000 For the fourth violation within a 24-month period by 2009 2,000 (not adjusted). a retailer without an approved training program. 333 note ...... 5,000 For the fifth violation within a 36-month period by a 2009 5,000 (not adjusted). retailer without an approved training program. 333 note ...... 10,000 For the sixth or subsequent violation within a 48- 2013 11,000. month period by a retailer without an approved training program. 335b(a) ...... 300,000 Per violation for an individual ...... 2013 325,000. 335b(a) ...... 1,200,000 Per violation for ‘‘any other person’’ ...... 2013 1,275,000. 360pp(b)(1) ...... 1,100 Per violation per person ...... 2008 1,100 (not adjusted). 360pp(b)(1) ...... 355,000 For any related series of violations ...... 2013 375,000.

42 U.S.C.

263b(h)(3) ...... 11,000 Per violation...... 2008 11,000 (not adjusted). 300aa–28(b)(1) ...... 120,000 Per occurrence...... 2013 130,000.

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■ 3. In § 17.5, revise paragraph (a) to maximum permissible level for residues ecfr.gpoaccess.gov/cgi/t/text/text- read as follows: of AAAs. idx?&c=ecfr&tpl=/ecfrbrowse/Title40/ 40tab_02.tpl. § 17.5 Complaint. DATES: This regulation is effective February 3, 2014. Objections and (a) The Center with principal C. How can I file an objection or hearing requests for hearings must be received request? jurisdiction over the matter involved on or before April 4, 2014, and must be shall begin all administrative civil filed in accordance with the instructions Under FFDCA section 408(g), 21 money penalty actions by serving on the provided in 40 CFR part 178 (see also U.S.C. 346a, any person may file an respondent(s) a complaint signed by the Unit I.C. of the SUPPLEMENTARY objection to any aspect of this regulation Office of the Chief Counsel attorney for INFORMATION). and may also request a hearing on those the Center and by filing a copy of the objections. You must file your objection complaint with the Division of Dockets ADDRESSES: The docket for this action, or request a hearing on this regulation Management (HFA–305), Food and Drug identified by docket identification (ID) in accordance with the instructions Administration, 5630 Fishers Lane, Rm. number EPA–HQ–OPP–2013–0210, is provided in 40 CFR part 178. To ensure 1061, Rockville, MD 20852. For a civil available at http://www.regulations.gov proper receipt by EPA, you must money penalty action against retailers of or at the Office of Pesticide Programs identify docket ID number EPA–HQ– tobacco products, the complaint may be Regulatory Public Docket (OPP Docket) OPP–2013–0210 in the subject line on signed by any Agency employee in the Environmental Protection Agency the first page of your submission. All designated by the Chief Counsel. Docket Center (EPA/DC), EPA West objections and requests for a hearing * * * * * Bldg., Rm. 3334, 1301 Constitution Ave. must be in writing, and must be NW., Washington, DC 20460–0001. The received by the Hearing Clerk on or Dated: January 28, 2014. Public Reading Room is open from 8:30 before April 4, 2014. Addresses for mail Leslie Kux, a.m. to 4:30 p.m., Monday through and hand delivery of objections and Assistant Commissioner for Policy. Friday, excluding legal holidays. The hearing requests are provided in 40 CFR [FR Doc. 2014–02150 Filed 1–31–14; 8:45 am] telephone number for the Public 178.25(b). BILLING CODE 4160–01–P Reading Room is (202) 566–1744, and In addition to filing an objection or the telephone number for the OPP hearing request with the Hearing Clerk Docket is (703) 305–5805. Please review as described in 40 CFR part 178, please the visitor instructions and additional submit a copy of the filing that does not ENVIRONMENTAL PROTECTION information about the docket available contain any CBI for inclusion in the AGENCY at http://www.epa.gov/dockets. public docket. Information not marked 40 CFR Part 180 FOR FURTHER INFORMATION CONTACT: Lois confidential pursuant to 40 CFR part 2 Rossi, Registration Division (7505P), may be disclosed publicly by EPA [EPA–HQ–OPP–2013–0210; FRL–9394–2] Office of Pesticide Programs, without prior notice. Submit a copy of Environmental Protection Agency, 1200 your non-CBI objection or hearing αlpha-Alkyl-w-Hydroxypoly Pennsylvania Ave., NW., Washington, request, identified by docket ID number (Oxypropylene) and/or Poly DC 20460–0001; telephone number: EPA–HQ–OPP–2013–0210, by one of (Oxyethylene) Polymers Where the (703) 305–7090; email address: the following methods: Alkyl Chain Contains a Minimum of Six [email protected]. • Federal eRulemaking Portal: http:// Carbons etc.; Exemption From the SUPPLEMENTARY INFORMATION: www.regulations.gov. Follow the on-line Requirement of a Tolerance instructions for submitting comments. I. General Information • Mail: OPP Docket, Environmental AGENCY: Environmental Protection A. Does this action apply to me? Protection Agency Docket Center (EPA/ Agency (EPA). DC), (28221T), 1200 Pennsylvania Ave. ACTION: Final rule. You may be potentially affected by NW., Washington, DC 20460–0001. this action if you are an agricultural • Hand Delivery: To make special SUMMARY: This regulation establishes an producer, food manufacturer, or arrangements for hand delivery or exemption from the requirement of a pesticide manufacturer. The following delivery of boxed information, please tolerance for residues of a-alkyl-w- list of North American Industrial follow the instructions at http:// hydroxypoly (oxypropylene) and/or Classification System (NAICS) codes is www.epa.gov/dockets/contacts.html. poly (oxyethylene) polymers where the not intended to be exhaustive, but rather Additional instructions on alkyl chain contains a minimum of six provides a guide to help readers commenting or visiting the docket, carbons, and a-alkyl-w-hydroxypoly determine whether this document along with more information about (oxypropylene) and/or poly applies to them. Potentially affected dockets generally, is available at (oxyethylene) polymers where the alkyl entities may include: http://www.epa.gov/dockets. chain contains a minimum of six • Crop production (NAICS code 111). II. Petition for Exemption carbons and a minimum number • Animal production (NAICS code average molecular weight (in amu) 1,100 112). In the Federal Register of August 5, (hereinafter referred to as ‘‘AAAs’’ (alkyl • Food manufacturing (NAICS code 2009 (74 FR 38935) (FRL–8430–1), EPA alcohol alkoxylates) when used as an 311). issued a final rule, announcing the inert ingredient as a surfactant in • Pesticide manufacturing (NAICS establishment of a tolerance exemption pesticide formulations in growing crops code 32532). pursuant to a pesticide petition (PP without limitations. Akzo Nobel Surface 9E7534) by The Joint Inerts Task Force Chemistry submitted a petition to EPA B. How can I get electronic access to (JITF), Cluster Support Team Number 1 under the Federal Food, Drug, and other related information? (CST1), c/o CropLife America, 1156 Cosmetic Act (FFDCA), requesting an You may access a frequently updated 15th Street NW., Suite 400, Washington, amendment to an existing requirement electronic version of 40 CFR part 180 DC 20005. The petition requested that of a tolerance. This regulation through the Government Printing 40 CFR 180.910, 40 CFR 180.930, 40 eliminates the need to establish a Office’s e-CFR site at http:// CFR 180.940a, and 40 CFR 180.960 be

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amended by establishing exemptions residues of AAAs to include CAS Reg. 09–2; 126646–02–4; 126950–62–7; from the requirement of a tolerance for No.: 9004–87–9; 9035–85–2; 9038–29–3; 139381–39–8; 139626–71–4; 152231– residues of a group of substances known 9038–43–1; 9040–05–5; 9046–09–7; 44–2; 154518–36–2; 157627–88–8; as AAAs. The exemptions narratively 25190–05–0; 25231–21–4; 26401–47–8; 157707–41–0; 157707–43–2; 159653– describe the subject chemical as a-alkyl- 26403–74–7; 26636–39–5; 27252–75–1; 49–3; 160901–09–7; 160901–19–9; w-hydroxypoly (oxypropylene) and/or 37311–00–5; 37311–01–6; 37311–04–9; 160901–20–2; 161025–21–4; 161025– poly (oxyethylene) polymers where the 39278–93–8; 50861–66–0; 52232–09–4; 22–5; 176022–76–7; 287935–46–0; alkyl chain contains a minimum of six 57455–38–6; 57497–74–2; 59112–62–8; 288095–59–0; 288260–45–7; 303176– carbons and specify the individual 62648–50–4; 63303–00–4; 63303–01–5; 75–2; and 954108–36–2 are covered by chemicals covered by the exemptions by 63658–45–7; 63793–60–2; 64415–24–3; the published tolerance exemption for a listing of CAS Reg. Nos. The current 64415–25–4; 64425–86–1; 65104–72–5; AAAs and that no further data or review petition seeks to expand these 65150–81–4; 67254–71–1; 67763–08–0; is required to amend the existing exemptions by adding additional 67784–96–7; 68238–81–3; 68238–82–4; tolerance exemption to include the chemicals identified by the CAS Reg. 68409–58–5; 68409–59–6; 68439–30–5; additional CAS Reg. Nos. No. 68439–48–5; 68439–53–2; 68526–95–4; In the Federal Register of July 19, 68603–20–3; 68920–69–4; 68954–94–9; Based upon review of the data 2013 (78 FR 43118) (FRL–9392–9), EPA 68987–90–6; 68991–48–0; 69227–20–9; supporting the petition, EPA has issued a notice pursuant to section 408 70955–07–6; 70955–69–0; 71011–10–4; confirmed that most of the originally of FFDCA, 21 U.S.C. 346a, announcing 72066–65–0; 72108–90–8; 72484–69–6; requested CAS Reg. Nos. are acceptable the filing of a pesticide petition (IN– 73018–31–2; 74432–13–6; 74499–34–6; for consideration under the currently 10544) by Spring Trading Company, 79771–03–2; 102782–43–4; 103331–86– approved descriptor. However, several 10805 W. Timberwagon Cir., Spring, TX 8; 103657–84–7; 103657–85–8; 103819– of the originally requested compounds 77380–4030, on behalf of Akzo Nobel 03–0; 116810–32–3; 116810–33–4; have aromatic components or have an Surface Chemistry, LLC, 525 West Van 120944–68–5; 121617–09–2; 126646– alkyl chain too short or contain an ester Buren, Chicago, IL 60607–3823. The 02–4; 126950–62–7; 139381–39–8; which do not fit within the AAA petition requested that 40 CFR 180.920, 139626–71–4; 152231–44–2; 154518– descriptor, are not acceptable, and EPA 40 CFR 180.930, and 40 CFR 180.960 be 36–2; 157627–88–8; 157707–41–0; is denying that portion of the petition. amended by modifying the exemption 157707–43–2; 159653–49–3; 160901– CAS Reg. Nos 9004–87–9, 9046–09–7, from the requirement of a tolerance for 09–7; 160901–19–9; 160901–20–2; 26401–47–8, 26403–74–7, 9278–93–8, residues of AAAs by adding residues of 161025–21–4; 161025–22–5; 176022– 57455–38–6, 57497–74–2, 63303–00–4, additional chemicals of a-alkyl-w- 76–7; 287935–46–0; 288095–59–0; 68987–90–6, 70955–69–0, and 288095– hydroxypoly (oxypropylene) and/or 288260–45–7; 303176–75–2; and 59–0 are denied because these poly(oxyethylene) polymers where the 954108–36–2 when used as an inert alkyl chain contains a minimum of six compounds contain a phenyl group as ingredient in pesticide formulations part of their structure which is carbons, and a-alkyl-w-hydroxypoly applied to growing crops without (oxypropylene) and/or poly considered an aromatic component. limitations. That notice referenced a These substances do not fall within the (oxyethylene) polymers where the alkyl summary of the petition prepared by chain contains a minimum of six aliphatic descriptor and are not Akzo Nobel Surface Chemistry, the supported by the existing data. CAS carbons, minimum number average petitioner, which is available in the molecular weight (in AMU) 1,100 in or Reg. No. 139381–39–8 is denied because docket, http://www.regulations.gov. on growing crops at no limitation when its alkyl chain contains only four Comments were received on the notice used as an inert ingredient in pesticide carbons (butyl group) which is too short of filing. EPA’s response to these formulations. That notice referenced a to fit the AAA descriptor. CAS Reg No. comments is discussed in Unit V.C. summary of the petition prepared by 67784–96–7 is denied because it Akzo Nobel Surface Chemistry, the In this petition, Akzo Nobel Surface contains an ester which is not included petitioner, which is available in the Chemistry claims that the chemicals in the tolerance exemption descriptor. docket, http://www.regulations.gov. CAS Reg. No.; 9004–87–9; 9035–85–2; The cluster data is based on common Comments were received on the notice 9038–29–3; 9038–43–1; 9040–05–5; chemical structures and the denied 9046–09–7; 25190–05–0; 25231–21–4; of filing. A public comment noted that chemicals would not fit within the 26401–47–8; 26403–74–7; 26636–39–5; the requested 40 CFR sections, 180.920, established category. This limitation is 27252–75–1; 37311–00–5; 37311–01–6; 180.930, or 180.960 were not all the based on the Agency’s risk assessment 37311–04–9; 39278–93–8; 50861–66–0; correct sections for AAAs. The which can be found at http:// petitioner agreed and resubmitted their 52232–09–4; 57455–38–6; 57497–74–2; 59112–62–8; 62648–50–4; 63303–00–4; www.regulations.gov in document IN– request. 10544. Requesting to Amend the In the Federal Register of September 63303–01–5; 63658–45–7; 63793–60–2; Exemption from the Requirement of a 12, 2013 (78 FR 56187) (FRL–9399–7), 64415–24–3; 64415–25–4; 64425–86–1; a w EPA issued a notice pursuant to section 65104–72–5; 65150–81–4; 67254–71–1; Tolerance for -alkyl- -hydroxypoly 408 of FFDCA, 21 U.S.C. 346a, 67763–08–0; 67784–96–7; 68238–81–3; (oxypropylene) and/or poly announcing the filing of a pesticide 68238–82–4; 68409–58–5; 68409–59–6; (oxyethylene) polymers where the alkyl petition (IN–10544) by Spring Trading 68439–30–5; 68439–48–5; 68439–53–2; chain contains a minimum of six Company, 10805 W. Timberwagon Cir., 68526–95–4; 68603–20–3; 68920–69–4; carbons, and a-alkyl-w-hydroxypoly Spring, TX 77380–4030, on behalf of 68954–94–9; 68987–90–6; 68991–48–0; (oxypropylene) and/or poly Akzo Nobel Surface Chemistry, LLC, 69227–20–9; 70955–07–6; 70955–69–0; (oxyethylene) polymers where the alkyl 525 West Van Buren, Chicago, IL 71011–10–4; 72066–65–0; 72108–90–8; chain contains a minimum of six 60607–3823. The petition requested that 72484–69–6; 73018–31–2; 74432–13–6; carbons and a minimum number 40 CFR 180.910, 40 CFR 180.930, 40 74499–34–6; 79771–03–2; 102782–43–4; average molecular weight (in amu) CFR 180.940(a) and 40 CFR 180.960 be 103331–86–8; 103657–84–7; 103657– 1,100, under 40 CFR 180.910, 180.930, amended by modifying the exemption 85–8; 103819–03–0; 116810–32–3; 180.940(a) or 180.960 in docket ID from the requirement of a tolerance for 116810–33–4; 120944–68–5; 121617– number EPA–HQ–OPP–2013–0210.

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III. Inert Ingredient Definition occur as a result of pesticide use in additional chemicals described above in Inert ingredients are all ingredients residential settings. If EPA is able to the risk assessment for the AAAs would that are not active ingredients as defined determine that a finite tolerance is not in no way alter that prior risk in 40 CFR 153.125 and include, but are necessary to ensure that there is a assessment given the generic findings not limited to, the following types of reasonable certainty that no harm will on toxicity and the worst case exposure ingredients (except when they have a result from aggregate exposure to the assumptions used in that risk pesticidal efficacy of their own): inert ingredient, an exemption from the assessment. Accordingly, based on the Solvents such as alcohols and requirement of a tolerance may be findings in that earlier rule, EPA has hydrocarbons; surfactants such as established. determined that there is a reasonable Consistent with section 408(c)(2)(A) polyoxyethylene polymers and fatty certainty that no harm to any population of FFDCA, and the factors specified in acids; carriers such as clay and subgroup, including infants and FFDCA section 408(c)(2)(B), EPA has children, will result from aggregate diatomaceous earth; thickeners such as reviewed the available scientific data carrageenan and modified cellulose; exposure to AAAs, by including the and other relevant information in additional chemicals described above, wetting, spreading, and dispersing support of this action. EPA has agents; propellants in aerosol under reasonably foreseeable sufficient data to assess the hazards of circumstances. Therefore, the dispensers; microencapsulating agents; and to make a determination on and emulsifiers. The term ‘‘inert’’ is not amendment of an exemption from aggregate exposure for AAAs including tolerance under 40 CFR 180.910, intended to imply nontoxicity; the exposure resulting from the exemption ingredient may or may not be 180.930, 180.940, and 180.960, for established by this action. EPA’s residues of AAAs to include the chemically active. Generally, EPA has assessment of exposures and risks exempted inert ingredients from the chemicals described above is safe under associated with AAAs follows. FFDCA section 408. requirement of a tolerance based on the The Agency agrees with the petitioner low toxicity of the individual inert that CAS Reg. No.: 9035–85–2; 9038– V. Other Considerations ingredients. 29–3; 9038–43–1; 9040–05–5; 25190– A. Analytical Enforcement Methodology IV. Aggregate Risk Assessment and 05–0; 25231–21–4; 26636–39–5; 27252– An analytical method is not required Determination of Safety 75–1; 37311–00–5; 37311–01–6; 37311– 04–9; 50861–66–0; 52232–09–4; 59112– for enforcement purposes since the Section 408(c)(2)(A)(i) of FFDCA 62–8; 62648–50–4; 63303–01–5; 63658– Agency is establishing an exemption allows EPA to establish an exemption 45–7; 63793–60–2; 64415–24–3; 64415– from the requirement of a tolerance from the requirement for a tolerance (the 25–4; 64425–86–1; 65104–72–5; 65150– without any numerical limitation. legal limit for a pesticide chemical 81–4; 67254–71–1; 67763–08–0; 68238– B. International Residue Limits residue in or on a food) only if EPA 81–3; 68238–82–4; 68409–58–5; 68409– determines that the tolerance is ‘‘safe.’’ 59–6; 68439–30–5; 68439–48–5; 68439– In making its tolerance decisions, EPA Section 408(b)(2)(A)(ii) of FFDCA 53–2; 68526–95–4; 68603–20–3; 68920– seeks to harmonize U.S. tolerances with defines ‘‘safe’’ to mean that ‘‘there is a 69–4; 68954–94–9; 68991–48–0; 69227– international standards whenever reasonable certainty that no harm will 20–9; 70955–07–6; 71011–10–4; 72066– possible, consistent with U.S. food result from aggregate exposure to the 65–0; 72108–90–8; 72484–69–6; 73018– safety standards and agricultural pesticide chemical residue, including 31–2; 74432–13–6; 74499–34–6; 79771– practices. EPA considers the all anticipated dietary exposures and all 03–2;102782–43–4; 103331–86–8; international maximum residue limits other exposures for which there is 103657–84–7; 103657–85–8; 103819– (MRLs) established by the Codex reliable information.’’ This includes 03–0; 116810–32–3; 116810–33–4; Alimentarius Commission (Codex), as exposure through drinking water and in 120944–68–5; 121617–09–2; 126646– required by FFDCA section 408(b)(4). residential settings, but does not include 02–4; 126950–62–7; 139626–71–4; The Codex Alimentarius is a joint U.N. occupational exposure. Section 152231–44–2; 154518–36–2; 157627– Food and Agriculture Organization/ 408(b)(2)(C) of FFDCA requires EPA to 88–8; 157707–41–0; 157707–43–2; World Health Organization food give special consideration to exposure 159653–49–3; 160901–09–7; 160901– standards program, and it is recognized of infants and children to the pesticide 19–9; 160901–20–2; 161025–21–4; as an international food safety chemical residue in establishing a 161025–22–5; 176022–76–7; 287935– standards-setting organization in trade tolerance and to ‘‘ensure that there is a 46–0; 288260–45–7; 303176–75–2; and agreements to which the United States reasonable certainty that no harm will 954108–36–2 are AAAs each having is a party. EPA may establish a tolerance result to infants and children from molecular structures conforming to the that is different from a Codex MRL; aggregate exposure to the pesticide chemical description given in the however, FFDCA section 408(b)(4) chemical residue. . . .’’ tolerance exemption expression, i.e., a- requires that EPA explain the reasons EPA establishes exemptions from the alkyl-w-hydroxypoly (oxypropylene) for departing from the Codex level. requirement of a tolerance only in those and/or poly (oxyethylene) polymers The Codex has not established a MRL cases where it can be clearly where the alkyl chain contains a for AAAs. demonstrated that the risks from minimum of six carbons and which do C. Response to Comments aggregate exposure to pesticide not contain additional structural chemical residues under reasonably elements that are not included within One comment was received for a foreseeable circumstances will pose no the tolerance exemption expression notice of filing from a private citizen appreciable risks to human health. In description. In 2009, in establishing the who opposed the authorization to sell order to determine the risks from exemption for the AAAs, EPA assessed any pesticide that leaves a residue on aggregate exposure to pesticide inert their safety generally using worst case food. The Agency understands the ingredients, the Agency considers the exposure assumptions. (74 FR 38935) commenter’s concerns and recognizes toxicity of the inert in conjunction with (FRL–8430–1). EPA concluded that that that some individuals believe that no possible exposure to residues of the assessment showed that exempting the residue of pesticides should be allowed. inert ingredient through food, drinking AAAs from the requirement from a However, under the existing legal water, and through other exposures that tolerance would be safe. Inclusion of framework provided by section 408 of

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the Federal Food, Drug and Cosmetic Order 12866, entitled Regulatory duty or contain any unfunded mandate Act (FFDCA), EPA is authorized to Planning and Review (58 FR 51735, as described under Title II of the establish pesticide tolerances or October 4, 1993). Because this final rule Unfunded Mandates Reform Act of 1995 exemptions where persons seeking such has been exempted from review under (UMRA) (Pub. L. 104–4). tolerances or exemptions have Executive Order 12866, this final rule is This action does not involve any demonstrated that the pesticide meets not subject to Executive Order 13211, technical standards that would require the safety standard imposed by the entitled Actions Concerning Regulations Agency consideration of voluntary statute. That Significantly Affect Energy Supply, consensus standards pursuant to section Distribution, or Use (66 FR 28355, May VI. Conclusions 12(d) of the National Technology 22, 2001) or Executive Order 13045, Transfer and Advancement Act of 1995 Therefore, the exemptions from the entitled Protection of Children from (NTTAA), Public Law 104–113, section requirement of a tolerance under 40 CFR Environmental Health Risks and Safety 12(d) (15 U.S.C. 272 note). 180.910, 180.930, 180.940a, and 180.960 Risks (62 FR 19885, April 23, 1997). for AAAs when used as an inert This final rule does not contain any VIII. Congressional Review Act ingredient as a surfactant in pesticide information collections subject to OMB The Congressional Review Act, 5 formulations applied to growing crops is approval under the Paperwork U.S.C. 801 et seq., generally provides amended to add the following CAS Reduction Act (PRA), 44 U.S.C. 3501 et that before a rule may take effect, the numbers: 9004–87–9; 9035–85–2; 9038– seq., nor does it require any special agency promulgating the rule must 29–3; 9038–43–1; 9040–05–5; 9046–09– considerations under Executive Order submit a rule report to each House of 7; 25190–05–0; 25231–21–4; 26401–47– 12898, entitled Federal Actions to the Congress and to the Comptroller 8; 26403–74–7; 26636–39–5; 27252–75– Address Environmental Justice in General of the United States. EPA will 1; 37311–00–5; 37311–01–6; 37311–04– Minority Populations and Low-Income submit a report containing this rule and 9; 39278–93–8; 50861–66–0; 52232–09– Populations (59 FR 7629, February 16, other required information to the U.S. 4; 57455–38–6; 57497–74–2; 59112–62– 1994). Senate, the U.S. House of 8; 62648–50–4; 63303–00–4; 63303–01– Since tolerances and exemptions that Representatives, and the Comptroller 5; 63658–45–7; 63793–60–2; 64415–24– are established on the basis of a petition General of the United States prior to 3; 64415–25–4; 64425–86–1; 65104–72– under section 408(d) of FFDCA, such as publication of this final rule in the 5; 65150–81–4; 67254–71–1; 67763–08– the tolerance in this final rule, do not Federal Register. This final rule is not 0; 67784–96–7; 68238–81–3; 68238–82– require the issuance of a proposed rule, a ‘‘major rule’’ as defined by 5 U.S.C. 4; 68409–58–5; 68409–59–6; 68439–30– the requirements of the Regulatory 804(2). 5; 68439–48–5; 68439–53–2; 68526–95– Flexibility Act (RFA) (5 U.S.C. 601 et 4; 68603–20–3; 68920–69–4; 68954–94– seq.) do not apply. List of Subjects in 40 CFR Part 180 This final rule directly regulates 9; 68987–90–6; 68991–48–0; 69227–20– Environmental protection, growers, food processors, food handlers, 9; 70955–07–6; 70955–69–0; 71011–10– Administrative practice and procedure, and food retailers, not States or tribes, 4; 72066–65–0; 72108–90–8; 72484–69– Agricultural commodities, Pesticides nor does this action alter the 6; 73018–31–2; 74432–13–6; 74499–34– and pests, Reporting and recordkeeping relationships or distribution of power 6; 79771–03–2; 102782–43–4; 103331– requirements. 86–8; 103657–84–7; 103657–85–8; and responsibilities established by 103819–03–0; 116810–32–3; 116810– Congress in the preemption provisions Dated: January 17, 2014. 33–4; 120944–68–5; 121617–09–2; of section 408(n)(4) of FFDCA. As such, Lois Rossi, 126646–02–4; 126950–62–7; 139381– the Agency has determined that this Director, Registration Division, Office of 39–8; 139626–71–4; 152231–44–2; action will not have a substantial direct Pesticide Programs. 154518–36–2; 157627–88–8; 157707– effect on States or tribal governments, Therefore, 40 CFR chapter I is 41–0; 157707–43–2; 159653–49–3; on the relationship between the national amended as follows: 160901–09–7; 160901–19–9; 160901– government and the States or tribal 20–2; 161025–21–4; 161025–22–5; governments, or on the distribution of PART 180—[AMENDED] 176022–76–7; 287935–46–0; 288095– power and responsibilities among the ■ 59–0; 288260–45–7; 303176–75–2; and various levels of government or between 1. The authority citation for part 180 954108–36–2. the Federal Government and Indian continues to read as follows: tribes. Thus, the Agency has determined Authority: 21 U.S.C. 321(q), 346a and 371. VII. Statutory and Executive Order that Executive Order 13132, entitled Reviews ■ 2. In § 180.910, the table is amended Federalism (64 FR 43255, August 10, by revising the following inert This final rule establishes a tolerance 1999) and Executive Order 13175, ingredient to read as follows: under section 408(d) of FFDCA in entitled Consultation and Coordination response to a petition submitted to the with Indian Tribal Governments (65 FR § 180.910 Inert ingredients used pre- and Agency. The Office of Management and 67249, November 9, 2000) do not apply post-harvest; exemptions from the Budget (OMB) has exempted these types to this final rule. In addition, this final requirement of a tolerance. of actions from review under Executive rule does not impose any enforceable * * * * *

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Inert ingredients Limits Uses

******* a-Alkyl-w-hydroxypoly (oxypropylene) and/or poly (oxyethylene) polymers where the alkyl Surfactants, related adjuvants of chain contains a minimum of six carbons (CAS Reg. No.: 9035–85–2; 9038–29–3; 9038– surfactants. 43–1; 9040–05–5; 25190–05–0; 25231–21–4; 26636–39–5; 27252–75–1; 37311–00–5; 37311–01–6; 37311–04–9; 50861–66–0; 52232–09–4; 59112–62–8; 62648–50–4; 63303– 01–5; 63658–45–7; 63793–60–2; 64415–24–3; 64415–25–4; 64425–86–1; 65104–72–5; 65150–81–4; 67254–71–1; 67763–08–0; 68238–81–3; 68238–82–4; 68409–58–5; 68409– 59–6; 68439–30–5; 68439–48–5; 68439–53–2; 68526–95–4; 68603–20–3; 68920–69–4; 68954–94–9; 68991–48–0; 69227–20–9; 70955–07–6; 71011–10–4; 72066–65–0; 72108– 90–8; 72484–69–6; 73018–31–2; 74432–13–6; 74499–34–6; 79771–03–2;102782–43–4; 103331–86–8; 103657–84–7; 103657–85–8; 103819–03–0; 116810–32–3; 116810–33–4; 120944–68–5; 121617–09–2; 126646–02–4; 126950–62–7; 139626–71–4; 152231–44–2; 154518–36–2; 157627–88–8; 157707–41–0; 157707–43–2; 159653–49–3; 160901–09–7; 160901–19–9; 160901–20–2; 161025–21–4; 161025–22–5; 176022–76–7; 287935–46–0; 288260–45–7; 303176–75–2; 954108–36–2

*******

■ 3. In § 180.930, the table is amended § 180.930 Inert ingredients applied to by revising the following inert animals; exemptions from the requirement ingredient to read as follows: of a tolerance. * * * * *

Inert ingredients Limits Uses

******* a-Alkyl-w-hydroxypoly (oxypropylene) and/or poly (oxyethylene) polymers where the alkyl Surfactants, related adjuvants of chain contains a minimum of six carbons (CAS Reg. No.: 9035–85–2; 9038–29–3; 9038– surfactants. 43–1; 9040–05–5; 25190–05–0; 25231–21–4; 26636–39–5; 27252–75–1; 37311–00–5; 37311–01–6; 37311–04–9; 50861–66–0; 52232–09–4; 59112–62–8; 62648–50–4; 63303– 01–5; 63658–45–7; 63793–60–2; 64415–24–3; 64415–25–4; 64425–86–1; 65104–72–5; 65150–81–4; 67254–71–1; 67763–08–0; 68238–81–3; 68238–82–4; 68409–58–5; 68409– 59–6; 68439–30–5; 68439–48–5; 68439–53–2; 68526–95–4; 68603–20–3; 68920–69–4; 68954–94–9; 68991–48–0; 69227–20–9; 70955–07–6; 71011–10–4; 72066–65–0; 72108– 90–8; 72484–69–6; 73018–31–2; 74432–13–6; 74499–34–6; 79771–03–2;102782–43–4; 103331–86–8; 103657–84–7; 103657–85–8; 103819–03–0; 116810–32–3; 116810–33–4; 120944–68–5; 121617–09–2; 126646–02–4; 126950–62–7; 139626–71–4; 152231–44–2; 154518–36–2; 157627–88–8; 157707–41–0; 157707–43–2; 159653–49–3; 160901–09–7; 160901–19–9; 160901–20–2; 161025–21–4; 161025–22–5; 176022–76–7; 287935–46–0; 288260–45–7; 303176–75–2; 954108–36–2

*******

■ 4. In § 180.940, the table in paragraph § 180.940 Tolerance exemptions for active (a) * * * (a) is amended by revising the following and inert ingredients for use in entry to read as follows: antimicrobial formulations (Food-contact surface sanitizing solutions). * * * * *

Pesticide chemical CAS Reg. No. Limits

******* a-Alkyl-w-hydroxypoly (oxypropylene) and/or poly 9035–85–2; 9038–29–3; 9038–43–1; 9040–05–5; 25190–05–0; 25231–21–4; (oxyethylene) polymers where the alkyl chain con- 26636–39–5; 27252–75–1; 37311–00–5; 37311–01–6; 37311–04–9; 50861– tains a minimum of six carbons. 66–0; 52232–09–4; 59112–62–8; 62648–50–4; 63303–01–5; 63658–45–7; 63793–60–2; 64415–24–3; 64415–25–4; 64425–86–1; 65104–72–5; 65150– 81–4; 67254–71–1; 67763–08–0; 68238–81–3; 68238–82–4; 68409–58–5; 68409–59–6; 68439–30–5; 68439–48–5; 68439–53–2; 68526–95–4; 68603– 20–3; 68920–69–4; 68954–94–9; 68991–48–0; 69227–20–9; 70955–07–6; 71011–10–4; 72066–65–0; 72108–90–8; 72484–69–6; 73018–31–2; 74432– 13–6; 74499–34–6; 79771–03–2;102782–43–4; 103331–86–8; 103657–84– 7; 103657–85–8; 103819–03–0; 116810–32–3; 116810–33–4; 120944–68–5; 121617–09–2; 126646–02–4; 126950–62–7; 139626–71–4; 152231–44–2; 154518–36–2; 157627–88–8; 157707–41–0; 157707–43–2; 159653–49–3; 160901–09–7; 160901–19–9; 160901–20–2; 161025–21–4; 161025–22–5; 176022–76–7; 287935–46–0; 288260–45–7; 303176–75–2; 954108–36–2.

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Pesticide chemical CAS Reg. No. Limits

*******

* * * * * ■ 5. In § 180.960, the table is amended § 180.960 Polymers; exemptions from the by revising the following entry to read requirement of a tolerance. as follows: * * * * *

Polymer CAS No.

******* a-Alkyl-w-hydroxypoly (oxypropylene) and/or poly (oxy- 9035–85–2; 9038–29–3; 9038–43–1; 9040–05–5; 25190–05–0; 25231–21–4; ethylene) polymers where the alkyl chain contains a min- 26636–39–5; 27252–75–1; 37311–00–5; 37311–01–6; 37311–04–9; 50861– imum of six carbons and a minimum number average mo- 66–0; 52232–09–4; 59112–62–8; 62648–50–4; 63303–01–5; 63658–45–7; lecular weight (in amu) 1,100. 63793–60–2; 64415–24–3; 64415–25–4; 64425–86–1; 65104–72–5; 65150– 81–4; 67254–71–1; 67763–08–0; 68238–81–3; 68238–82–4; 68409–58–5; 68409–59–6; 68439–30–5; 68439–48–5; 68439–53–2; 68526–95–4; 68603– 20–3; 68920–69–4; 68954–94–9; 68991–48–0; 69227–20–9; 70955–07–6; 71011–10–4; 72066–65–0; 72108–90–8; 72484–69–6; 73018–31–2; 74432– 13–6; 74499–34–6; 79771–03–2;102782–43–4; 103331–86–8; 103657–84–7; 103657–85–8; 103819–03–0; 116810–32–3; 116810–33–4; 120944–68–5; 121617–09–2; 126646–02–4; 126950–62–7; 139626–71–4; 152231–44–2; 154518–36–2; 157627–88–8; 157707–41–0; 157707–43–2; 159653–49–3; 160901–09–7; 160901–19–9; 160901–20–2; 161025–21–4; 161025–22–5; 176022–76–7; 287935–46–0; 288260–45–7; 303176–75–2; 954108–36–2.

*******

[FR Doc. 2014–02203 Filed 1–31–14; 8:45 am] Framework). This final rule modifies the submitted in writing to Anik Clemens, BILLING CODE 6560–50–P recordkeeping and reporting Southeast Regional Office, NMFS, 263 requirements for headboat owners and 13th Avenue South, St. Petersburg, FL operators who fish for species managed 33701; and OMB, by email at OIRA DEPARTMENT OF COMMERCE by the Gulf Council through the [email protected], or by fax to previously mentioned FMPs. These 202–395–7285. National Oceanic and Atmospheric revisions require fishing records to be FOR FURTHER INFORMATION CONTACT: Rich Administration submitted electronically (via computer Malinowski, Southeast Regional Office, or internet) on a weekly basis or at NMFS, telephone 727–824–5305; email: 50 CFR Part 622 intervals shorter than a week if notified [email protected]. [Docket No. 130802673–4053–02] by the NMFS’ Southeast Fisheries SUPPLEMENTARY INFORMATION: NMFS and Science Center (SEFSC) Science and the Councils manage the fisheries for RIN 0648–BD49 Research Director (SRD), and prohibit Gulf reef fish and Gulf and South headboats from continuing to fish if Fisheries of the Caribbean, Gulf of Atlantic CMP under their respective they are delinquent in submitting Mexico, and South Atlantic; Revisions FMPs. The FMPs were prepared by the reports. Additionally, this final rule to Headboat Reporting Requirements Gulf and South Atlantic Councils and includes two corrections to regulatory for Species Managed by the Gulf of are implemented through regulations at text. The purpose of this final rule is to Mexico Fishery Management Council 50 CFR part 622 under the authority of obtain timelier fishing information from the Magnuson-Stevens Fishery AGENCY: National Marine Fisheries headboats to better monitor recreational Conservation and Management Act Service (NMFS), National Oceanic and annual catch limits (ACLs), improve (Magnuson-Stevens Act). Atmospheric Administration (NOAA), stock assessments, and improve On October 25, 2013, NMFS Commerce. compliance with reporting in Gulf published a proposed rule for the ACTION: Final rule. fisheries. framework and requested public comment (78 FR 63946). The proposed DATES: This rule is effective March 5, SUMMARY: NMFS issues this final rule to rule and framework outline the rationale 2014. implement management measures for the actions contained in this final described in a framework action to the ADDRESSES: Electronic copies of the rule. A summary of the actions Fishery Management Plans for the Reef Headboat Reporting Framework, which implemented by this final rule is Fish Resources of the Gulf of Mexico includes an environmental assessment provided below. (Gulf), as prepared by the Gulf of and a regulatory impact review, may be This final rule requires electronic Mexico Fishery Management Council obtained from the Southeast Regional reporting for headboat vessels in the (Gulf Council); and Coastal Migratory Office Web site at http:// Gulf reef fish and Gulf coastal migratory Pelagic (CMP) Resources of the Gulf and sero.nmfs.noaa.gov. pelagic fisheries; increases the reporting South Atlantic Region, as prepared by Comments regarding the burden-hour frequency for headboat vessels in these the Gulf Council and the South Atlantic estimates or other aspects of the fisheries; and prohibits headboats from Fishery Management Council (South collection-of-information requirements continuing to fish if they are delinquent Atlantic Council) (Headboat Reporting contained in this final rule may be in submitting their reports. As

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explained in the preamble to the action entitled ‘‘Red Snapper 2013 estimated catch before docking are those proposed rule, this rule will require Quota Increase and Supplemental that participate in the Gulf red snapper headboat owners and operators, who are Recreational Season’’. These quotas and grouper/tilefish individual fishing selected by the SRD, to use an electronic were established in pounds and then quota (IFQ) programs. This allows logbook (eLog) form through the codified in pounds, round weight, along NMFS the opportunity to intercept an ‘‘Southeast Region Headboat Survey,’’ with their kilogram conversions. IFQ vessel at the dock to verify that this an electronic reporting system However, the kilogram conversions data is accurate and is necessary for developed by the SEFSC for trips were incorrect in that final rule. This enforcement reasons that are not present completed, and to submit no fishing final rule corrects those conversions. outside the IFQ programs. Comment 2: Bi-monthly reporting is reports when no trips are taken. This Comments and Responses form is available through a password sufficient because requiring more protected Web site that can be accessed NMFS received six comment frequent reporting will inhibit headboat by personal computer, computer tablet, submissions on the framework action productivity. or ‘‘smart’’ phone (an application can be and the proposed rule; one from an Response: NMFS disagrees that downloaded on both Android phones environmental organization and five requiring weekly, as opposed to bi- and iPhones). The Web site can be from individuals. Two individuals and monthly, reporting will increase the accessed at https://selogbook.com. An the environmental organization administrative burden on headboat access code is required to log in to the expressed general support for the action owners to such an extent that Web site. Bluefin Data also requires a in the framework. Two individuals productivity is inhibited. Headboat current email address for each vessel opposed requiring electronic reporting. operators will be required to record and owner to send access codes and other One of these commenters thought daily submit the same information as is information regarding the Web site to reporting should be required while the currently required but will be vessel owners. Once Bluefin Data other commenter thought bi-monthly submitting it on a more regular basis. registers a vessel owner and provides reporting was sufficient. One comment Further, although more frequent the vessel owner with an access code was on issues outside the scope of the reporting may increase the direct costs via email, the vessel owner is able to log action in the framework and this final to headboat businesses, it is also in to the Web site and create a password rule, and one comment was related to expected to increase the accuracy of the for his account. The vessel owner can the economic analysis in the proposed harvest monitoring process, which will rule. A summary of the comments and register more than one vessel under his increase economic benefits. The Council NMFS’ responses to those comments password and more than one captain. determined, and NMFS agrees, that appears below. The vessel owner determines who can requiring weekly reporting will allow Comment 1: Daily reporting should be managers to obtain the data necessary to access the Web site using his password. required so it can be verified before the more effectively manage harvest while Additionally, this final rule includes boat docks, which currently occurs in minimizing costs to headboat two corrections to regulatory text. An the commercial sector. businesses. interim final rule to reorganize the 50 Response: NMFS disagrees that daily Comment 3: Reporting by phone and/ CFR part 622 regulations published on reporting should be required for or mail along with electronic reporting April 17, 2013 (78 FR 22950), and headboats. The Council considered should be allowed, at least for a included a restructuring of the requiring daily reporting for headboats transition period during initial prohibition section to just include but did not select that alternative implementation of electronic reporting. general prohibitions instead of specific because it would impose a more Response: NMFS disagrees that prohibitions. Then a final rule that burdensome requirement on the allowing alternative reporting methods published on July 31, 2013 (78 FR industry when daily reporting may not is necessary during the initial 46292), added a prohibition that be necessary to effectively monitor the implementation of the electronic prohibited any person from failing to fisheries. The alternative selected by the reporting requirement. Since January 1, comply with the passenger capacity Council requires weekly reporting but 2013, the SRD has requested that requirements in §§ 622.20(b)(1)(iv) and also allows the SRD to require more headboat owners and operators report 622.373(e). A final rule for the frequent reporting if necessary. NMFS electronically. Currently, 95 percent of reorganization of 50 CFR part 622 agrees with the Council that requiring headboats are reporting electronically. published on September 19, 2013 (78 FR weekly reporting, with the flexibility to The remaining 5 percent have known 57534), that changed the prohibition require more frequent reporting if that electronic reporting would be section back to specific prohibitions necessary, ensures that the timely and required since the Council took final instead of general prohibitions, accurate data necessary to manage the action on the framework action in June however, NMFS inadvertently did not fishery is received while imposing less 2013. Additional time to comply with include the prohibition from the July 31, burden on administrators and industry. the new requirement is unnecessary and 2013, rule into the final reorganization With respect to the commercial sector, would delay the benefits of transitioning rule. The preamble to the final daily reporting and dockside to this more timely and accurate method reorganization rule clearly indicated verification are not generally required. of reporting. that the intent was to replace the general Commercial landings are reported on a Comment 4: Dockside sampling prohibitions with all relevant specific per trip basis by dealers. Currently, most frequency should be increased and a prohibitions and stakeholders should dealers are required to report bi- Gulf at-sea headboat observer program have understood that the omission of monthly, however, the Council should be established to validate this specific prohibition was not developed the Generic Dealer Reporting logbook data and better define bycatch intentional. Therefore, that prohibition Amendment to change the frequency of and discards. In addition, the collection is added back into the regulations dealer reporting to weekly. The of economic data should be included as through this final rule. A final rule that proposed rulemaking implementing that part of the electronic logbook program. published on September 18, 2013 (78 FR amendment published on January 2, Response: Such additional data 57313), included new quotas for Gulf 2014 (79 FR 81). The only commercial collection elements are beyond the red snapper, based on the framework vessel permit holders that must report scope of the current rulemaking.

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However, the Gulf Council or NMFS implementing the South Atlantic by paper. NMFS estimates that the could, in the future, consider increasing changes to the headboat reporting requirement for headboat owners and the amount of dockside and onboard requirements published before this final operators to report more frequently sampling to validate electronic logbook rule. Therefore, in this final rule, the (weekly instead of monthly) does not data and collect economic data as part paragraphs for Gulf and South Atlantic create more burden on headboat owners of the logbook program. headboat reporting requirements for and operators, because the headboat Comment 5: The rule would affect coastal migratory pelagic fish have been owners and operators will still be more businesses than forecasted; the combined (for both reporting methods reporting the same amount of projected reporting expense of $374 per and frequency) because when this final information, but just transmitting the business per year ‘‘can have negative rule becomes effective, both Gulf and data more frequently. These estimates of effects’’ on small businesses; and the South Atlantic headboat reporting the public reporting burden include the assessment understated the significance requirements for coastal migratory time for reviewing instructions, of the economic effects of the proposed pelagic fish will be the same. gathering and maintaining the data rule. Classification needed, and completing and reviewing Response: NMFS disagrees that the the collection-of-information. analysis in the proposed rule The Regional Administrator, Notwithstanding any other provision understated the significance of the Southeast Region, NMFS, has of law, no person is required to respond economic effects of the reporting change determined that this final rule is to, nor shall a person be subject to a on headboat businesses. The analysis necessary for the management of the penalty for failure to comply with, a stated that the rule would directly affect Gulf reef fish and coastal migratory collection-of-information subject to the all headboat businesses permitted to pelagic fisheries and is consistent with requirements of the PRA, unless that operate in the Gulf EEZ. Thus, all the framework, the FMP, the Magnuson- collection-of-information displays a appropriate businesses were included in Stevens Act and other applicable law. currently valid OMB control number. the assessment. With respect to the This final rule has been determined to estimated reporting expense, the be not significant for purposes of List of Subjects in 50 CFR Part 622 commenter misinterpreted this expense. Executive Order 12866. Fisheries, Fishing, Gulf, Headboat, As discussed in the proposed rule, this The Chief Counsel for Regulation of Reporting and recordkeeping estimate equals the labor burden for the Department of Commerce certified requirements. reporting via either paper or electronic to the Chief Counsel for Advocacy of the means. Because paper reports have been Small Business Administration during Dated: January 28, 2014. required, this estimate equals the the proposed rule stage that this rule Samuel D. Rauch III, current reporting labor cost as well as would not have a significant economic Deputy Assistant Administrator for the reporting cost for electronic impact on a substantial number of small Regulatory Programs, National Marine reporting and thus would not be a new entities. The factual basis for this Fisheries Service. business expense. Any new expense determination was published in the For the reasons set out in the that might be incurred as a result of this proposed rule and is not repeated here. preamble, 50 CFR part 622 is amended rule would be associated with a possible In addition to the actions considered in as follows: need to purchase a computer and the framework, this final rule makes PART 622—FISHERIES OF THE acquire internet access. However, as changes to regulatory text in §§ 622.13 CARIBBEAN, GULF OF MEXICO, AND also discussed in the proposed rule, and 622.39. These changes are described SOUTH ATLANTIC computers and internet access are in the preamble to this final rule. These changes correct mistakes that occurred believed to be routinely used by ■ 1. The authority citation for part 622 in prior regulatory action and do not businesses in general and in this continues to read as follows: industry. Additionally, electronic impose new restrictions. As a result, reporting has been requested by the SRD none of these changes in the regulatory Authority: 16 U.S.C. 1801 et seq. since January 1, 2013. As a result, few, text would be expected to result in any ■ 2. In § 622.13, paragraph (pp) is added if any, of the businesses directly affected reduction in profits to any small to read as follows: entities. Comments on the economic by this rule would be expected to have § 622.13 Prohibitions. to incur any new expenses to meet the analysis are addressed in the comments requirements of this rule. and responses section (Comment 5) of * * * * * this final rule. No changes to the final (pp) Fail to comply with the Changes From the Proposed Rule rule were made in response to these passenger capacity related requirements In the proposed rule, the requirements comments. As a result, a final regulatory in §§ 622.20(b)(1)(iv) and 622.373(e). for headboat reporting methods and flexibility analysis was not required and * * * * * frequency of reporting for coastal none was prepared. ■ 3. In § 622.26, paragraph (b) is revised migratory pelagic fish were separated This final rule contains collection-of- to read as follows: into Gulf requirements information requirements subject to the (§ 622.371(b)(1)(ii) and (b)(2)(ii)) and requirements of the Paperwork § 622.26 Recordkeeping and reporting. South Atlantic requirements Reduction Act (PRA), which have been * * * * * (§ 622.371(b)(1)(iii) and (b)(2)(iii)). The approved by OMB under control (b) Charter vessel/headboat owners South Atlantic Fishery Management number 0648–0016. NMFS estimates and operators—(1) General reporting Council proposed identical headboat that the requirement for Gulf headboat requirement—(i) Charter vessels. The reporting requirements and that owners and operators to report owner or operator of a charter vessel for proposed rule also separated the electronically results in a net zero effect which a charter vessel/headboat permit requirements for headboat reporting on the reporting burden under OMB for Gulf reef fish has been issued, as methods and frequency of reporting for control number 0648–0016, because required under § 622.20(b), or whose coastal migratory pelagic fish into Gulf headboat owners and operators will vessel fishes for or lands such reef fish requirements and South Atlantic continue to report all species harvested, in or from state waters adjoining the requirements. The final rule however, now electronically instead of Gulf EEZ, who is selected to report by

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the SRD must maintain a fishing record according to the reporting requirements South Atlantic coastal migratory pelagic for each trip, or a portion of such trips under this section. A report not received fish in or from state waters adjoining the as specified by the SRD, on forms within the time specified in paragraph Gulf or South Atlantic EEZ, who is provided by the SRD and must submit (b)(2)(ii) is delinquent. A delinquent selected to report by the SRD must such record as specified in paragraph report automatically results in the submit an electronic fishing record for (b)(2) of this section. owner and operator of a headboat for each trip of all fish harvested within the (ii) Headboats. The owner or operator which a charter vessel/headboat permit time period specified in paragraph of a headboat for which a charter vessel/ for Gulf reef fish has been issued being (b)(2)(ii) of this section, via the headboat permit for Gulf reef fish has prohibited from harvesting or Southeast Region Headboat Survey. been issued, as required under possessing such species, regardless of (2) Reporting deadlines—(i) Charter § 622.20(b), or whose vessel fishes for or any additional notification to the vessels. Completed fishing records lands such reef fish in or from state delinquent owner and operator by required by paragraph (b)(1)(i) of this waters adjoining the Gulf EEZ, who is NMFS. The owner and operator who are section for charter vessels must be selected to report by the SRD must prohibited from harvesting or submitted to the SRD weekly, submit an electronic fishing record for possessing such species due to postmarked no later than 7 days after each trip of all fish harvested within the delinquent reports are authorized to the end of each week (Sunday). time period specified in paragraph harvest or possess such species only Information to be reported is indicated (b)(2)(ii) of this section, via the after all required and delinquent reports on the form and its accompanying Southeast Region Headboat Survey. have been submitted and received by instructions. (2) Reporting deadlines—(i) Charter NMFS according to the reporting (ii) Headboats. Electronic fishing vessels. Completed fishing records requirements under this section. records required by paragraph (b)(1)(ii) required by paragraph (b)(1)(i) of this of this section for headboats must be section for charter vessels must be * * * * * submitted at weekly intervals (or submitted to the SRD weekly, ■ 4. In § 622.39, paragraphs (a)(1)(i) and intervals shorter than a week if notified postmarked no later than 7 days after (a)(2)(i) are revised to read as follows: by the SRD) by 11:59 p.m., local time, the end of each week (Sunday). § 622.39 Quotas. the Sunday following a reporting week. Information to be reported is indicated If no fishing activity occurred during a on the form and its accompanying * * * * * reporting week, an electronic report so (a) * * * instructions. stating must be submitted for that (ii) Headboats. Electronic fishing (1) * * * (i) Commercial quota for red reporting week by 11:59 p.m., local records required by paragraph (b)(1)(ii) snapper—5.610 million lb (2.545 time, the Sunday following a reporting of this section for headboats must be week. million kg), round weight. submitted at weekly intervals (or (3) Catastrophic conditions. During intervals shorter than a week if notified * * * * * catastrophic conditions only, NMFS by the SRD) by 11:59 p.m., local time, (2) * * * provides for use of paper forms for basic the Sunday following a reporting week. (i) Recreational quota for red required functions as a backup to the If no fishing activity occurred during a snapper—5.390 million lb (2.445 electronic reports required by paragraph reporting week, an electronic report so million kg), round weight. (b)(1)(ii) of this section. The RA will stating must be submitted for that * * * * * determine when catastrophic conditions reporting week by 11:59 p.m., local ■ 5. In § 622.374, paragraph (b) is exist, the duration of the catastrophic time, the Sunday following a reporting revised, to read as follows: conditions, and which participants or week. geographic areas are deemed affected by (3) Catastrophic conditions. During § 622.374 Recordkeeping and reporting. the catastrophic conditions. The RA will catastrophic conditions only, NMFS * * * * * provide timely notice to affected provides for use of paper forms for basic (b) Charter vessel/headboat owners participants via publication of required functions as a backup to the and operators—(1) General reporting notification in the Federal Register, electronic reports required by paragraph requirement—(i) Charter vessels. The NOAA weather radio, fishery bulletins, (b)(1)(ii) of this section. The RA will owner or operator of a charter vessel for and other appropriate means and will determine when catastrophic conditions which a charter vessel/headboat permit authorize the affected participants’ use exist, the duration of the catastrophic for Gulf coastal migratory pelagic fish of paper-based components for the conditions, and which participants or has been issued, as required under duration of the catastrophic conditions. geographic areas are deemed affected by § 622.370(b)(1), or whose vessel fishes The paper forms will be available from the catastrophic conditions. The RA will for or lands Gulf or South Atlantic NMFS. During catastrophic conditions, provide timely notice to affected coastal migratory fish in or from state the RA has the authority to waive or participants via publication of waters adjoining the Gulf or South modify reporting time requirements. notification in the Federal Register, Atlantic EEZ, who is selected to report (4) Compliance requirement. NOAA weather radio, fishery bulletins, by the SRD must maintain a fishing Electronic reports required by paragraph and other appropriate means and will record for each trip, or a portion of such (b)(1)(ii) of this section must be authorize the affected participants’ use trips as specified by the SRD, on forms submitted and received by NMFS of paper-based components for the provided by the SRD and must submit according to the reporting requirements duration of the catastrophic conditions. such record as specified in paragraph under this section. A report not received The paper forms will be available from (b)(2)(i) of this section. within the time specified in paragraph NMFS. During catastrophic conditions, (ii) Headboats. The owner or operator (b)(2)(ii) is delinquent. A delinquent the RA has the authority to waive or of a headboat for which a charter vessel/ report automatically results in the modify reporting time requirements. headboat permit for Gulf coastal owner and operator of a headboat for (4) Compliance requirement. migratory fish or South Atlantic coastal which a charter vessel/headboat permit Electronic reports required by paragraph migratory pelagic fish has been issued, for Gulf coastal migratory pelagic fish (b)(1)(ii) of this section must be as required under § 622.370(b)(1), or has been issued being prohibited from submitted and received by NMFS whose vessel fishes for or lands Gulf or harvesting or possessing such species,

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regardless of any additional notification delinquent reports are authorized to NMFS according to the reporting to the delinquent owner and operator by harvest or possess such species only requirements under this section. NMFS. The owner and operator who are after all required and delinquent reports * * * * * prohibited from harvesting or have been submitted and received by [FR Doc. 2014–02177 Filed 1–31–14; 8:45 am] possessing such species due to BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 79, No. 22

Monday, February 3, 2014

This section of the FEDERAL REGISTER For service information identified in substantive verbal contact we receive contains notices to the public of the proposed this proposed AD, contact Airbus SAS, about this proposed AD. issuance of rules and regulations. The Airworthiness Office—EAW, 1 Rond Discussion purpose of these notices is to give interested Point Maurice Bellonte, 31707 Blagnac persons an opportunity to participate in the Cedex, France; telephone +33 5 61 93 36 The European Aviation Safety Agency rule making prior to the adoption of the final rules. 96; fax +33 5 61 93 44 51; email (EASA), which is the Technical Agent [email protected]; for the Member States of the European Internet http://www.airbus.com. You Community, has issued EASA DEPARTMENT OF TRANSPORTATION may view this referenced service Airworthiness Directive 2013–0165, information at the FAA, Transport dated July 25, 2013 (referred to after this Federal Aviation Administration Airplane Directorate, 1601 Lind Avenue as the Mandatory Continuing SW., Renton, Washington. For Airworthiness Information, or ‘‘the 14 CFR Part 39 information on the availability of this MCAI’’), to correct an unsafe condition for the specified products. The MCAI [Docket No. FAA–2014–0005; Directorate material at the FAA, call 425–227–1221. states: Identifier 2013–NM–144–AD] Examining the AD Docket An A310 operator reported an electrical arc RIN 2120–AA64 You may examine the AD docket on and a large hydraulic haze in the Left Hand the Internet at http:// (LH) Main Landing Gear (MLG) wheel bay Airworthiness Directives; Airbus www.regulations.gov by searching for that occurred during ground operation. Airplanes and locating Docket No. FAA–2014– The analysis of the occurrence revealed AGENCY: Federal Aviation 0005; or in person at the Docket that this was likely caused by chafing Administration (FAA), DOT. Management Facility between 9 a.m. between a hydraulic high pressure hose and electrical wiring of the Green Electrical ACTION: Notice of proposed rulemaking and 5 p.m., Monday through Friday, Motor Pump (EMP). (NPRM). except Federal holidays. The AD docket This condition, * * * could result in an contains this proposed AD, the undetected and uncontrolled fire in the LH SUMMARY: We propose to adopt a new regulatory evaluation, any comments MLG wheel bay. airworthiness directive (AD) for certain received, and other information. The For the reason described above, this Airbus Model A310 series airplanes. street address for the Docket Operations [EASA] AD requires modification of the This proposed AD was prompted by a office (telephone (800) 647–5527) is in electrical routing and installation of report of an electrical arc and a the ADDRESSES section. Comments will reinforced hydraulic pipes [by replacing the hydraulic haze in the wheel bay of the be available in the AD docket shortly union elbows to re-route the delivery pipe at the upper EMP]. left-hand main landing gear (MLG), after receipt. possibly resulting from chafing between FOR FURTHER INFORMATION CONTACT: Dan You may examine the MCAI in the AD a hydraulic high pressure hose and Rodina, Aerospace Engineer, docket on the Internet at http:// electrical wiring of the green electrical International Branch, ANM–116, www.regulations.gov by searching for motor pump (EMP). This proposed AD Transport Airplane Directorate, FAA, and locating it in Docket No. would require modification of the 1601 Lind Avenue SW., Renton, WA FAA-2014-0005. electrical routing and replacement of the 98057–3356; telephone (425) 227–2125; union elbows. We are proposing this AD Relevant Service Information fax (425) 227–1149. to prevent chafing of hydraulic pressure Airbus has issued Mandatory Service hoses and electrical wiring of the green SUPPLEMENTARY INFORMATION: Bulletin A310–29–2103, dated EMPs, which, in combination with a Comments Invited December 21, 2012. The actions system failure, could cause an described in this service information are uncontrolled and undetected fire in the We invite you to send any written intended to correct the unsafe condition MLG bay. relevant data, views, or arguments about identified in the MCAI. DATES: We must receive comments on this proposed AD. Send your comments FAA’s Determination and Requirements this proposed AD by March 20, 2014. to an address listed under the of This Proposed AD ADDRESSES: You may send comments by ADDRESSES section. Include ‘‘Docket No. any of the following methods: FAA–2014–0005; Directorate Identifier This product has been approved by • Federal eRulemaking Portal: Go to 2013–NM–144–AD’’ at the beginning of the aviation authority of another http://www.regulations.gov. Follow the your comments. We specifically invite country, and is approved for operation instructions for submitting comments. comments on the overall regulatory, in the United States. Pursuant to our • Fax: (202) 493–2251. economic, environmental, and energy bilateral agreement with the State of • Mail: U.S. Department of aspects of this proposed AD. We will Design Authority, we have been notified Transportation, Docket Operations, M– consider all comments received by the of the unsafe condition described in the 30, West Building Ground Floor, Room closing date and may amend this MCAI and service information W12–140, 1200 New Jersey Avenue SE., proposed AD based on those comments. referenced above. We are proposing this Washington, DC 20590. We will post all comments we AD because we evaluated all pertinent • Hand Delivery: Deliver to Mail receive, without change, to http:// information and determined an unsafe address above between 9 a.m. and 5 www.regulations.gov, including any condition exists and is likely to exist or p.m., Monday through Friday, except personal information you provide. We develop on other products of the same Federal holidays. will also post a report summarizing each type design.

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Costs of Compliance The Proposed Amendment (1) Alternative Methods of Compliance We estimate that this proposed AD (AMOCs): The Manager, International Accordingly, under the authority Branch, ANM–116, FAA, has the authority to affects 36 airplanes of U.S. registry. delegated to me by the Administrator, We also estimate that it would take approve AMOCs for this AD, if requested the FAA proposes to amend 14 CFR part using the procedures found in 14 CFR 39.19. about 4 work-hours per product to 39 as follows: comply with the basic requirements of In accordance with 14 CFR 39.19, send your this proposed AD. The average labor PART 39—AIRWORTHINESS request to your principal inspector or local Flight Standards District Office, as rate is $85 per work-hour. Required DIRECTIVES appropriate. If sending information directly parts would cost about $1,170 per to the International Branch, send it to ATTN: product. Based on these figures, we ■ 1. The authority citation for part 39 Dan Rodina, Aerospace Engineer, estimate the cost of this proposed AD on continues to read as follows: International Branch, ANM–116, Transport U.S. operators to be 54,360, or $1,510 Authority: 49 U.S.C. 106(g), 40113, 44701. Airplane Directorate, FAA, 1601 Lind per product. Avenue SW., Renton, WA 98057–3356; § 39.13 [Amended] Authority for This Rulemaking telephone (425) 227–2125; fax (425) 227– ■ 2. The FAA amends § 39.13 by adding 1149. Information may be emailed to: 9- Title 49 of the United States Code the following new AD: specifies the FAA’s authority to issue [email protected]. Before using any approved AMOC, notify rules on aviation safety. Subtitle I, Airbus: Docket No. FAA–2014–0005; your appropriate principal inspector, or section 106, describes the authority of Directorate Identifier 2013–NM–144–AD. lacking a principal inspector, the manager of the FAA Administrator. ‘‘Subtitle VII: (a) Comments Due Date the local flight standards district office/ Aviation Programs,’’ describes in more We must receive comments by March 20, certificate holding district office. The AMOC detail the scope of the Agency’s 2014. approval letter must specifically reference authority. this AD. We are issuing this rulemaking under (b) Affected ADs (2) Airworthy Product: For any requirement the authority described in ‘‘Subtitle VII, None. in this AD to obtain corrective actions from Part A, Subpart III, Section 44701: (c) Applicability a manufacturer, use these actions if they are General requirements.’’ Under that This AD applies to Airbus Model A310– FAA-approved. Corrective actions are section, Congress charges the FAA with 203, –204, –221, –222, –304, –322, –324, and considered FAA-approved if they were promoting safe flight of civil aircraft in –325 airplanes, certificated in any category, approved by the State of Design Authority (or air commerce by prescribing regulations all serial numbers on which Airbus its delegated agent, or the DAH with a State for practices, methods, and procedures modification number 04797 has been of Design Authority’s design organization embodied in production and those on which the Administrator finds necessary for approval). For a repair method to be safety in air commerce. This proposed Airbus Service Bulletin A310–29–2091 has been embodied in service. approved, the repair approval must regulation is within the scope of that specifically refer to this AD. You are required authority because it addresses an unsafe (d) Subject to ensure the product is airworthy before it condition that is likely to exist or Air Transport Association (ATA) of is returned to service. develop on products identified in this America Code 29, Hydraulic Power. rulemaking action. (i) Related Information (e) Reason (1) Refer to Mandatory Continuing Regulatory Findings This AD was prompted by a report of an Airworthiness Information (MCAI) European We determined that this proposed AD electrical arc and a hydraulic haze in the Aviation Safety Agency Airworthiness would not have federalism implications wheel bay of the left-hand main landing gear Directive 2013–0165, dated July 25, 2013, for (MLG) possibly resulting from chafing under Executive Order 13132. This related information. This MCAI may be between a hydraulic high pressure hose and proposed AD would not have a electrical wiring of the green electrical motor found in the AD docket on the Internet at substantial direct effect on the States, on pump (EMP). We are issuing this AD to http://www.regulations.gov by searching for the relationship between the national prevent chafing of hydraulic pressure hoses and locating it in Docket No. FAA–2014– Government and the States, or on the and electrical wiring of the green EMPs, 0005. distribution of power and which, in combination with a system failure, (2) For service information identified in responsibilities among the various could cause an uncontrolled and undetected this AD, contact Airbus SAS, Airworthiness levels of government. fire in the MLG bay. Office—EAW, 1 Rond Point Maurice For the reasons discussed above, I (f) Compliance Bellonte, 31707 Blagnac Cedex, France; certify this proposed regulation: telephone +33 5 61 93 36 96; fax +33 5 61 Comply with this AD within the 1. Is not a ‘‘significant regulatory 93 44 51; email account.airworth-eas@ compliance times specified, unless already action’’ under Executive Order 12866; done. airbus.com; Internet http://www.airbus.com. 2. Is not a ‘‘significant rule’’ under the You may view this service information at the DOT Regulatory Policies and Procedures (g) Actions FAA, Transport Airplane Directorate, 1601 (44 FR 11034, February 26, 1979); Within 36 months after the effective date Lind Avenue SW., Renton, WA. For 3. Will not affect intrastate aviation in of this AD, modify the electrical routing of information on the availability of this Alaska; and the electrical motor pump (EMP) power material at the FAA, call 425–227–1221. 4. Will not have a significant supply in the hydraulic bay at frame 54 on economic impact, positive or negative, the left-hand side and replace the union Issued in Renton, Washington, on January on a substantial number of small entities elbows to re-route the delivery pipe at the 22, 2014. under the criteria of the Regulatory upper EMP, in accordance with the Jeffrey E. Duven, Flexibility Act. Accomplishment Instructions of Airbus Manager, Transport Airplane Directorate, Mandatory Service Bulletin A310–29–2103, Aircraft Certification Service. List of Subjects in 14 CFR Part 39 dated December 21, 2012. [FR Doc. 2014–02158 Filed 1–31–14; 8:45 am] (h) Other FAA AD Provisions Air transportation, Aircraft, Aviation BILLING CODE 4910–13–P safety, Incorporation by reference, The following provisions also apply to this Safety. AD:

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DEPARTMENT OF TRANSPORTATION Cedex, France; telephone +33 5 61 93 36 for the specified products. The MCAI 96; fax +33 5 61 93 45 80; email states: Federal Aviation Administration [email protected]; During endurance qualification tests on Internet http://www.airbus.com. You A380 Trimmable Horizontal Stabilizer 14 CFR Part 39 may view this referenced service Actuator (THSA), a partial loss of the no-back [Docket No. FAA–2014–0006; Directorate information at the FAA, Transport brake (NBB) efficiency was experienced. Due Identifier 2013–NM–147–AD] Airplane Directorate, 1601 Lind Avenue to THSA design similarity on the A330/A340 SW., Renton, WA. For information on fleet, a similar partial loss of the NBB RIN 2120–AA64 the availability of this material at the efficiency was identified on THSA Part FAA, call 425–227–1221. Number (P/N) 47147, installed on A330–300 Airworthiness Directives; Airbus and A340–200/–300 aeroplanes, and on Airplanes Examining the AD Docket THSA P/N 47172, installed on A330–200/– 300 and A340–200/–300 aeroplanes. AGENCY: Federal Aviation You may examine the AD docket on Administration (FAA), DOT. the Internet at http:// Investigation results concluded that this www.regulations.gov; or in person at the particular malfunction was due an ageing/ ACTION: Notice of proposed rulemaking endurance issue of the surfaces of the NBB Docket Management Facility between 9 (NPRM). carbon friction disks, leading to a partial loss a.m. and 5 p.m., Monday through of braking efficiency in some specific SUMMARY: We propose to adopt a new Friday, except Federal holidays. The AD aerodynamic load conditions. airworthiness directive (AD) for all docket contains this proposed AD, the This condition, if not detected and Airbus Model A330–200 Freighter, regulatory evaluation, any comments corrected and in conjunction with the power A330–200, A330–300, A340–200, and received, and other information. The gear train not able to keep the ball screw in A340–300 series airplanes. This street address for the Docket Operations its last commanded position, could lead to proposed AD was prompted by the office (telephone (800) 647–5527) is in uncommanded movements of the THSA, results of endurance qualification tests the ADDRESSES section. Comments will possibly resulting in the loss of control of the on the trimmable horizontal stabilizer be available in the AD docket shortly aeroplane. actuator (THSA), which revealed a after receipt. To address this potential unsafe condition, EASA issued * * * [an earlier AD] to require partial loss of the no-back brake (NBB) FOR FURTHER INFORMATION CONTACT : replacement of each THSA that has exceeded efficiency in specific load conditions. Vladimir Ulyanov, Aerospace Engineer, This proposed AD would require 16,000 flight cycles (FC) in-service, to be sent International Branch, ANM–116, in shop for NBB carbon disk replacement. inspecting certain THSAs to determine Transport Airplane Directorate, FAA, Since that AD was issued, a need for the number of total flight cycles the 1601 Lind Avenue SW., Renton, WA clarification has been demonstrated, THSA has accumulated, and replacing 98057–3356; telephone 425–227–1138; regarding the identification of the THSA the THSA if necessary. We are fax 425–227–1149. ‘‘affected’’ by this requirement. proposing this AD to detect and correct SUPPLEMENTARY INFORMATION: For this reason, EASA AD 2013–0144 is premature wear of the carbon friction revised, confirming that the AD only affects disks on the NBB of the THSA, which Comments Invited those THSA identified by Part Number (P/N) could lead to reduced braking efficiency in Airbus Alert Operator Transmission (AOT) We invite you to send any written A27L005–13. In addition, a note has been in certain load conditions and, in relevant data, views, or arguments about conjunction with the inability of the added to make clear that the life limits as this proposed AD. Send your comments specified in the current revision of ALS Part power gear train to keep the ball screw to an address listed under the in its last commanded position, could 4 are still relevant for the affected THSA, as ADDRESSES section. Include ‘‘Docket No. applicable to aeroplane model and THSA result in uncommanded movements of FAA–2014–0006; Directorate Identifier P/N. This AD addresses the life limit for the the THS and loss of control of the 2013–NM–147–AD’’ at the beginning of NBB installed on the THSA, not the life limit airplane. your comments. We specifically invite for the THSA itself. DATES: We must receive comments on comments on the overall regulatory, A further reduction of the life limit of the this proposed AD by March 20, 2014. economic, environmental, and energy NBB, probably down to 12,000 FC, is under evaluation by EASA and further actions are ADDRESSES: aspects of this proposed AD. We will You may send comments by likely to follow for the THSA that have any of the following methods: consider all comments received by the • exceeded that limit in service. In that context Federal eRulemaking Portal: Go to closing date and may amend this and to assess the operational status of the http://www.regulations.gov. Follow the proposed AD based on those comments. THSA of the A330–200/–300 and A340–200/ instructions for submitting comments. We will post all comments we –300 fleet, this AD also requires • Fax: (202) 493–2251. receive, without change, to http:// identification of the THSA, collection of • Mail: U.S. Department of www.regulations.gov, including any operational data, and reporting the results to Transportation, Docket Operations, M– personal information you provide. We Airbus. 30, West Building Ground Floor, Room will also post a report summarizing each W12–140, 1200 New Jersey Avenue SE., substantive verbal contact we receive You may examine the MCAI in the Washington, DC 20590. about this proposed AD. AD docket on the Internet at http:// • Hand Delivery: U.S. Department of www.regulations.gov by searching for Discussion Transportation, Docket Operations, M– and locating it in Docket No. FAA– 30, West Building Ground Floor, Room The European Aviation Safety Agency 2014–0006. W12–140, 1200 New Jersey Avenue SE., (EASA), which is the Technical Agent Relevant Service Information Washington, DC, between 9 a.m. and 5 for the Member States of the European p.m., Monday through Friday, except Community, has issued EASA Airbus has issued Alert Operators Federal holidays. Airworthiness Directive 2013–0144R1, Transmission (AOT) A27L005–13, dated For service information identified in dated August 27, 2013 (referred to after July 11, 2013. The actions described in this proposed AD, contact Airbus SAS, this as the Mandatory Continuing this service information are intended to Airworthiness Office—EAL, 1 Rond Airworthiness Information, or ‘‘the correct the unsafe condition identified Point Maurice Bellonte, 31707 Blagnac MCAI’’), to correct an unsafe condition in the MCAI.

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FAA’s Determination and Requirements rules on aviation safety. Subtitle I, Airbus: Docket No. FAA–2014–0006; of This Proposed AD section 106, describes the authority of Directorate Identifier 2013–NM–147–AD. This product has been approved by the FAA Administrator. ‘‘Subtitle VII: (a) Comments Due Date the aviation authority of another Aviation Programs,’’ describes in more We must receive comments by March 20, country, and is approved for operation detail the scope of the Agency’s 2014. authority. in the United States. Pursuant to our (b) Affected ADs bilateral agreement with the State of We are issuing this rulemaking under Design Authority, we have been notified the authority described in ‘‘Subtitle VII, None. of the unsafe condition described in the Part A, Subpart III, Section 44701: (c) Applicability MCAI and service information General requirements.’’ Under that section, Congress charges the FAA with This AD applies to the Airbus airplanes referenced above. We are proposing this identified in paragraphs (c)(1) through (c)(5) AD because we evaluated all pertinent promoting safe flight of civil aircraft in of this AD; certificated in any category; all information and determined an unsafe air commerce by prescribing regulations manufacturer serial numbers. condition exists and is likely to exist or for practices, methods, and procedures (1) Model A330–201, –202, –203, –223, and develop on other products of the same the Administrator finds necessary for –243 airplanes. type design. safety in air commerce. This proposed (2) Model A330–223F and –243F airplanes. regulation is within the scope of that (3) Model A330–301, –302, –303, –321, Costs of Compliance authority because it addresses an unsafe –322, –323, –341, –342, and –343 airplanes. (4) Model A340–211, –212, and –213 We estimate that this proposed AD condition that is likely to exist or develop on products identified in this airplanes. affects 76 airplanes of U.S. registry. (5) Model A340–311, –312, and –313 We also estimate that it would take rulemaking action. airplanes. about 6 work-hours per product to Regulatory Findings comply with the basic requirements of (d) Subject this proposed AD. The average labor We determined that this proposed AD Air Transport Association (ATA) of rate is $85 per work-hour. Required would not have federalism implications America Code 27, Flight Controls. under Executive Order 13132. This parts would cost about $0 per product. (e) Reason Based on these figures, we estimate the proposed AD would not have a substantial direct effect on the States, on This AD was prompted by the results of cost of this proposed AD on U.S. endurance qualification tests on the operators to be $38,760, or $510 per the relationship between the national trimmable horizontal stabilizer actuator product. Government and the States, or on the (THSA), which revealed a partial loss of the In addition, we estimate that any distribution of power and no-back brake (NBB) efficiency in specific necessary follow-on actions would take responsibilities among the various load conditions. We are issuing this AD to about 23 work-hours and require parts levels of government. detect and correct premature wear of the costing $722,556, for a cost of $724,511 For the reasons discussed above, I carbon friction disks on the NBB of the per product. We have no way of certify this proposed regulation: THSA, which could lead to reduced braking 1. Is not a ‘‘significant regulatory efficiency in certain load conditions and, in determining the number of aircraft that conjunction with the inability of the power might need this action. action’’ under Executive Order 12866; 2. Is not a ‘‘significant rule’’ under the gear train to keep the ball screw in its last Paperwork Reduction Act DOT Regulatory Policies and Procedures commanded position, could result in uncommanded movements of the THS and A federal agency may not conduct or (44 FR 11034, February 26, 1979); loss of control of the airplane. sponsor, and a person is not required to 3. Will not affect intrastate aviation in respond to, nor shall a person be subject Alaska; and (f) Compliance to penalty for failure to comply with a 4. Will not have a significant Comply with this AD within the collection of information subject to the economic impact, positive or negative, compliance times specified, unless already requirements of the Paperwork on a substantial number of small entities done. Reduction Act unless that collection of under the criteria of the Regulatory (g) Inspection Flexibility Act. information displays a current valid For airplanes having a THSA with a part OMB control number. The control List of Subjects in 14 CFR Part 39 number specified in Airbus Alert Operators number for the collection of information Air transportation, Aircraft, Aviation Transmission (AOT) A27L005–13, dated July required by this proposed AD is 2120– 11, 2013: Within 30 days after the effective safety, Incorporation by reference, 0056. The paperwork cost associated date of this AD, identify each THSA that has Safety. with this proposed AD has been accumulated 10,000 total flight cycles or detailed in the Costs of Compliance The Proposed Amendment more since the THSA’s first installation on an section of this document and includes airplane, and report the collected operational Accordingly, under the authority life data to Airbus, in accordance with the time for reviewing instructions, as well delegated to me by the Administrator, instruction of Airbus AOT A27L005–13, as completing and reviewing the the FAA proposes to amend 14 CFR part dated July 11, 2013. collection of information. Therefore, all 39 as follows: reporting associated with this proposed (h) THSA Replacement AD is mandatory. Comments concerning PART 39—AIRWORTHINESS For airplanes having a THSA with a part the accuracy of this burden and DIRECTIVES number specified in Airbus AOT A27L005– suggestions for reducing the burden 13, dated July 11, 2013: At the applicable should be directed to the FAA at 800 ■ 1. The authority citation for part 39 time specified in paragraph (h)(1), (h)(2), or continues to read as follows: (h)(3) of this AD, replace each affected THSA Independence Ave. SW., Washington, with a serviceable THSA, in accordance with DC 20591. ATTN: Information Authority: 49 U.S.C. 106(g), 40113, 44701. the instructions of Airbus AOT A27L005–13, Collection Clearance Officer, AES–200. dated July 11, 2013. § 39.13 [Amended] Authority for This Rulemaking (1) For a THSA that has accumulated ■ 2. The FAA amends § 39.13 by adding 20,000 total flight cycles or more since the Title 49 of the United States Code the following new airworthiness THSA’s first installation on an airplane, as of specifies the FAA’s authority to issue directive (AD): the effective date of this AD: Replace the

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THSA within 12 months or 1,500 flight (k) Other FAA AD Provisions Office—EAL, 1 Rond Point Maurice Bellonte, cycles after the effective date of this AD, The following provisions also apply to this 31707 Blagnac Cedex, France; telephone +33 whichever occurs first. AD: 5 61 93 36 96; fax +33 5 61 93 45 80; email (2) For a THSA that has accumulated (1) Alternative Methods of Compliance [email protected]; 16,000 total flight cycles or more, but less (AMOCs): The Manager, International Internet http://www.airbus.com. You may than 20,000 total flight cycles since the Branch, ANM–116, Transport Airplane view this service information at the FAA, THSA’s first installation on an airplane, as of Directorate, FAA, has the authority to Transport Airplane Directorate, 1601 Lind the effective date of this AD, and that is approve AMOCs for this AD, if requested Avenue SW., Renton, WA. For information installed on an Airbus Model A330–201, using the procedures found in 14 CFR 39.19. on the availability of this material at the –202, –203, –223, –223F, –243, –243F, –301, In accordance with 14 CFR 39.19, send your FAA, call 425–227–1221. –302, –303, –321, –322, –323, –341, –342, or request to your principal inspector or local Issued in Renton, Washington, on January –343 airplane: Replace the THSA within 30 Flight Standards District Office, as 22, 2014. appropriate. If sending information directly months or 4,000 flight cycles after the Jeffrey E. Duven, effective date of this AD, whichever occurs to the International Branch, send it to ATTN: Manager, Transport Airplane Directorate, first. Vladimir Ulyanov, Aerospace Engineer, Aircraft Certification Service. (3) For a THSA that has accumulated International Branch, ANM–116, Transport 16,000 total flight cycles or more, but less Airplane Directorate, FAA, 1601 Lind [FR Doc. 2014–02156 Filed 1–31–14; 8:45 am] that 20,000 total flight cycles since the Avenue SW., Renton, WA 98057–3356; BILLING CODE 4910–13–P THSA’s first installation on an airplane, as of telephone 425–227–1138; fax 425–227–1149. the effective date of this AD, and that is Information may be emailed to: 9-ANM-116- installed on an Airbus Model A340–211, [email protected]. Before using DEPARTMENT OF TRANSPORTATION –212, –213, –311, –312, or –313 airplane: any approved AMOC, notify your appropriate Replace the THSA within 30 months or 3,000 principal inspector, or lacking a principal Federal Aviation Administration flight cycles after the effective date of this inspector, the manager of the local flight AD, whichever occurs first. standards district office/certificate holding district office. The AMOC approval letter 14 CFR Part 39 must specifically reference this AD. (i) Definition of Serviceable THSA [Docket No. FAA–2014–0008; Directorate (2) Airworthy Product: For any requirement Except as required by paragraph (j)(2) of Identifier 2013–NM–076–AD] this AD, for the purposes of this AD a in this AD to obtain corrective actions from serviceable THSA is a THSA: a manufacturer, use these actions if they are RIN 2120–AA64 FAA-approved. Corrective actions are (1) Having a part number identified in considered FAA-approved if they were Airbus AOT A27L005–13, dated July 11, Airworthiness Directives; Embraer S.A. approved by the State of Design Authority (or 2013, that has accumulated fewer than Airplanes its delegated agent, or by the Design 20,000 total flight cycles since first Approval Holder with a State of Design installation on an airplane; or AGENCY: Federal Aviation Authority’s design organization approval). Administration (FAA), DOT. (2) Having a part number that is not For a repair method to be approved, the identified in Airbus AOT A27L005–13, dated repair approval must specifically refer to this ACTION: Notice of proposed rulemaking July 11, 2013. AD. You are required to ensure the product (NPRM). (j) Parts Installation Limitation and is airworthy before it is returned to service. Replacement (3) Reporting Requirements: A federal SUMMARY: We propose to supersede agency may not conduct or sponsor, and a Airworthiness Directive (AD) 2012–23– (1) As of 12 months after the effective date person is not required to respond to, nor 09, for all Embraer S.A. Model ERJ 190– of this AD, no person may install on any shall a person be subject to a penalty for airplane a THSA with a part number 100 STD, –100 LR, and –100 IGW failure to comply with a collection of airplanes; and Model ERJ 190–200 STD, specified in Airbus AOT A27L005–13, dated information subject to the requirements of July 11, 2013, that has accumulated 20,000 –200 LR, and –200 IGW airplanes. AD the Paperwork Reduction Act unless that 2012–23–09 currently requires revising total flight cycles or more since the THSA’s collection of information displays a current first installation on an airplane. For any valid OMB Control Number. The OMB the maintenance program to incorporate airplane having a THSA with a part number Control Number for this information modifications in airworthiness specified in Airbus AOT A27L005–13, dated collection is 2120–0056. Public reporting for limitations specified in Embraer S.A. July 11, 2013, that has accumulated 20,000 this collection of information is estimated to ERJ 190 195 Maintenance Review Board total flight cycles or more since the THSA’s be approximately 5 minutes per response, Report (MRBR). Since we issued AD first installation on an airplane: As of 12 including the time for reviewing instructions, 2012–23–09, we have determined that months after the effective date of this AD, completing and reviewing the collection of more restrictive maintenance before further flight, replace the affected information. All responses to this collection THSA with a serviceable THSA, in requirements and airworthiness of information are mandatory. Comments limitations are necessary. This proposed accordance with Airbus AOT A27L005–13, concerning the accuracy of this burden and dated July 11, 2013. suggestions for reducing the burden should AD would require revising the (2) As of 30 months after the effective date be directed to the FAA at: 800 Independence maintenance or inspection program to of this AD, no person may install on any Ave. SW., Washington, DC 20591, Attn: incorporate modifications in the airplane a THSA with a part number Information Collection Clearance Officer, airworthiness limitations specified in specified in Airbus AOT A27L005–13, dated AES–200. Embraer S.A. ERJ 190 195 MRBR to July 11, 2013, that has accumulated 16,000 (l) Related Information include new inspection tasks and their total flight cycles or more since the THSA’s respective thresholds and intervals. We first installation on an airplane. For any (1) Refer to Mandatory Continuing are proposing this AD to detect and airplane having a THSA with a part number Airworthiness Information (MCAI) European specified in Airbus AOT A27L005–13, dated Aviation Safety Agency Airworthiness correct fatigue cracking of structural July 11, 2013, that has accumulated 16,000 Directive 2013–0144R1, dated August 27, components, which could result in total flight cycles or more since the THSA’s 2013, for related information. This MCAI reduced structural integrity of the first installation on an airplane: As of 30 may be found in the AD docket on the airplane. months after the effective date of this AD, Internet at http://www.regulations.gov by DATES: We must receive comments on before further flight, replace the affected searching for and locating it in Docket No. THSA with a serviceable THSA, in FAA–2014–0006. this proposed AD by March 20, 2014. accordance with Airbus AOT A27L005–13, (2) For service information identified in ADDRESSES: You may send comments by dated July 11, 2013. this AD, contact Airbus SAS, Airworthiness any of the following methods:

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• Federal eRulemaking Portal: Go to consider all comments received by the unsafe condition identified in the http://www.regulations.gov. Follow the closing date and may amend this MCAI. instructions for submitting comments. proposed AD based on those comments. FAA’s Determination and Requirements • Fax: (202) 493–2251. We will post all comments we of This Proposed AD • Mail: U.S. Department of receive, without change, to http:// Transportation, Docket Operations, M– www.regulations.gov, including any This product has been approved by 30, West Building Ground Floor, Room personal information you provide. We the aviation authority of another W12–140, 1200 New Jersey Avenue SE., will also post a report summarizing each country, and is approved for operation Washington, DC 20590. substantive verbal contact we receive in the United States. Pursuant to our • Hand Delivery: Deliver to Mail about this proposed AD. bilateral agreement with the State of address above between 9 a.m. and 5 Design Authority, we have been notified Discussion p.m., Monday through Friday, except of the unsafe condition described in the Federal holidays. On November 13, 2012, we issued AD MCAI and service information For service information identified in 2012–23–09, Amendment 39–17265 (77 referenced above. We are proposing this this proposed AD, contact Embraer S.A., FR 73270, December 10, 2012). AD AD because we evaluated all pertinent Technical Publications Section (PC 2012–23–09 requires actions intended to information and determined an unsafe 060), Av. Brigadeiro Faria Lima, 2170— address an unsafe condition on the condition exists and is likely to exist or Putim—12227–901 Sa˜o Jose dos products listed above. develop on other products of the same Campos—SP—BRASIL; telephone +55 Since we issued AD 2012–23–09, type design. 12 3927–5852 or +55 12 3309–0732; fax Amendment 39–17265 (77 FR 73270, This AD requires revisions to certain +55 12 3927–7546; email distrib@ December 10, 2012), the Ageˆncia operator maintenance documents to embraer.com.br; Internet http:// Nacional de Aviac¸a˜o Civil (ANAC), include new actions (e.g., inspections) www.flyembraer.com. You may view which is the airworthiness authority for and/or Critical Design Configuration this referenced service information at Brazil, has issued Brazilian Control Limitations (CDCCLs). the FAA, Transport Airplane Airworthiness Directive 2012–10–02, Compliance with these actions and/or Directorate, 1601 Lind Avenue SW., dated October 29, 2012 (referred to after CDCCLs is required by 14 CFR Renton, WA. For information on the this as the Mandatory Continuing 91.403(c). For airplanes that have been availability of this material at the FAA, Airworthiness Information, or ‘‘the previously modified, altered, or repaired call 425–227–1221. MCAI’’). We have determined that more in the areas addressed by this AD, the restrictive maintenance requirements operator may not be able to accomplish Examining the AD Docket and airworthiness limitations are the actions described in the revisions. In You may examine the AD docket on necessary. The MCAI states: this situation, to comply with 14 CFR the Internet at http:// 91.403(c), the operator must request This [Brazilian] AD (http://www2.anac.gov. approval for an alternative method of www.regulations.gov by searching for br/certificacao/da/textos/1363amd.pdf) and locating Docket No. FAA–2014– results from a new revision to the compliance according to paragraph (k) 0008; or in person at the Docket Airworthiness Limitations Section (ALS) of of this AD. The request should include Management Facility between 9 a.m. Embraer ERJ 190 Maintenance Review Board a description of changes to the required and 5 p.m., Monday through Friday, Report (MRBR 1928), to include new or actions that will ensure the continued except Federal holidays. The AD docket modification of the current tasks and its damage tolerance of the affected contains this proposed AD, the respective thresholds and intervals. Failure structure. regulatory evaluation, any comments to inspect these structural components, according to the new or revised tasks, Costs of Compliance received, and other information. The thresholds and intervals, could prevent a We estimate that this proposed AD street address for the Docket Operations timely detection of fatigue cracking. These office (telephone (800) 647–5527) is in affects 98 airplanes of U.S. registry. cracks, if not properly addressed, could The actions that are required by AD the ADDRESSES section. Comments will adversely affect the structural integrity of the 2012–23–09, Amendment 39–17265 (77 be available in the AD docket shortly airplane. after receipt. FR 73270, December 10, 2012), and You may examine the MCAI in the AD retained in this proposed AD take about FOR FURTHER INFORMATION CONTACT: docket on the Internet at http:// 1 work-hour per product, at an average Kathrine Rask, Aerospace Engineer, www.regulations.gov by searching for labor rate of $85 per work-hour. International Branch, ANM–116, and locating it in Docket No. FAA– Required parts cost about $0 per Transport Airplane Directorate, FAA, 2014–0008. product. Based on these figures, the 1601 Lind Avenue SW., Renton, WA Relevant Service Information estimated cost of the actions that were 98057–3356; telephone: (425) 227–2180; required by AD 2012–23–09 is $85 per fax: (425) 227–1149. Embraer S.A. has issued Part 2— product. SUPPLEMENTARY INFORMATION: Airworthiness Limitation Inspections We also estimate that it would take (ALI)—Structures, of Appendix A, Comments Invited about 1 work-hour per product to Airworthiness Limitation—(AL), of the comply with the basic requirements of We invite you to send any written EMBRAER 190 195 MRBR, MRB–1928, this proposed AD. The average labor relevant data, views, or arguments about Revision 6, dated August 20, 2012; and rate is $85 per work-hour. Required this proposed AD. Send your comments Temporary Revision (TR) 6–3, dated parts would cost about $0 per product. to an address listed under the November 30, 2012, to Part 2— Based on these figures, we estimate the ADDRESSES section. Include ‘‘Docket No. Airworthiness Limitation Inspections cost of this proposed AD on U.S. FAA–2014–0008; Directorate Identifier (ALI)—Structures, of Appendix A, operators to be $8,330, or 85 per 2013–NM–076–AD’’ at the beginning of Airworthiness Limitations—(AL), of the product. your comments. We specifically invite EMBRAER 190 195 MRBR, MRB–1928, comments on the overall regulatory, Revision 6, dated August 20, 2012. The Authority for This Rulemaking economic, environmental, and energy actions described in this service Title 49 of the United States Code aspects of this proposed AD. We will information are intended to correct the specifies the FAA’s authority to issue

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rules on aviation safety. Subtitle I, 2012–23–09, Amendment 39–17265 (77 December 10, 2012). After accomplishing the section 106, describes the authority of FR 73270, December 10, 2012): revision required by paragraph (g) of this AD, the FAA Administrator. ‘‘Subtitle VII: no alternative actions (e.g., inspections) or Embraer S.A: Docket No. FAA–2014–0008; intervals, may be used, unless the actions or Aviation Programs,’’ describes in more Directorate Identifier 2013–NM–076–AD. intervals are approved as an alternative detail the scope of the Agency’s (a) Comments method of compliance (AMOC) in authority. accordance with the procedures specified in We are issuing this rulemaking under We must receive comments by March 20, paragraph (k)(1) of this AD, and except as the authority described in ‘‘Subtitle VII, 2014. required by paragraph (i) of this AD. Part A, Subpart III, Section 44701: (b) Affected ADs (i) New Requirements of This AD: Revision General requirements.’’ Under that This AD supersedes AD 2012–23–09, of the Maintenance or Inspection Program section, Congress charges the FAA with Amendment 39–17265 (77 FR 73270, Within 60 days after the effective date of promoting safe flight of civil aircraft in December 10, 2012). this AD, revise the maintenance or inspection air commerce by prescribing regulations (c) Applicability program, as applicable, to incorporate the for practices, methods, and procedures tasks specified in Part 2—Airworthiness the Administrator finds necessary for This AD applies to Embraer S.A. Model Limitation Inspections (ALI)—Structures, of safety in air commerce. This proposed ERJ 190–100 STD, –100 LR, and –100 IGW Appendix A, Airworthiness Limitations— airplanes; and Model ERJ 190–200 STD, –200 regulation is within the scope of that (AL), of the EMBRAER 190 195 Maintenance LR, and –200 IGW airplanes; certificated in Review Board Report MRB–1928, Revision 6, authority because it addresses an unsafe any category; all serial numbers. condition that is likely to exist or dated August 20, 2012; and EMBRAER TR 6– (d) Subject 3, dated November 30, 2012, to Part 2— develop on products identified in this Airworthiness Limitation Inspections (ALI)— rulemaking action. Air Transport Association (ATA) of Structures, of Appendix A, Airworthiness America Code 52, Doors; 53, Fuselage; 54, Regulatory Findings Limitations—(AL), of the EMBRAER 190 195 Nacelles/Pylons; 55, Stabilizers; 57, Wings; Maintenance Review Board Report, MRB– We determined that this proposed AD 71, Powerplant; and 78, Engine Exhaust. 1928, Revision 6, dated August 20, 2012; would not have federalism implications (e) Reason with the thresholds and intervals stated in under Executive Order 13132. This these documents. The initial compliance This AD was prompted by a determination times for the tasks are stated in the proposed AD would not have a that more restrictive maintenance substantial direct effect on the States, on ‘‘Implementation Plan’’ section of Appendix requirements and airworthiness limitations A, Airworthiness Limitations—(AL), of the the relationship between the national are necessary. We are proposing this AD to EMBRAER 190 195 Maintenance Review Government and the States, or on the detect and correct fatigue cracking of Board Report, MRB–1928, Revision 6, dated distribution of power and structural components, which could result in November 30, 2012, or within 90 days after responsibilities among the various reduced structural integrity of the airplane. the effective date of this AD, whichever levels of government. (f) Compliance occurs later. Doing the revision required by For the reasons discussed above, I this paragraph terminates the revision Comply with this AD within the required by paragraph (g) of this AD. certify this proposed regulation: compliance times specified, unless already 1. Is not a ‘‘significant regulatory done. (j) No Alternative Actions, Intervals, and/or action’’ under Executive Order 12866; Critical Design Configuration Control 2. Is not a ‘‘significant rule’’ under the (g) Retained Revision of the Maintenance Limitations (CDCCLs) Program DOT Regulatory Policies and Procedures After accomplishment of the revision (44 FR 11034, February 26, 1979); This paragraph restates the actions required by paragraph (i) of this AD, no 3. Will not affect intrastate aviation in required by paragraph (h) of AD 2012–23–09, alternative actions (e.g., inspections), Amendment 39–17265 (77 FR 73270, Alaska; and intervals, and/or CDCCLs may be used unless December 10, 2012). Within 90 days after the actions, intervals, and/or CDCCLs are 4. Will not have a significant January 14, 2013 (the effective date of AD economic impact, positive or negative, approved as an AMOC in accordance with 2012–23–09), revise the maintenance the procedures specified in paragraph (k)(1) on a substantial number of small entities program to incorporate the tasks specified in of this AD. under the criteria of the Regulatory Part 2—Airworthiness Limitation Inspections Flexibility Act. (ALI)—Structures, of Appendix A, (k) Other FAA AD Provisions Airworthiness Limitations (AL), of the The following provisions also apply to this List of Subjects in 14 CFR Part 39 EMBRAER 190 Maintenance Review Board AD: Air transportation, Aircraft, Aviation Report, MRB–1928, Revision 5, dated (1) Alternative Methods of Compliance safety, Incorporation by reference, November 11, 2010; and EMBRAER (AMOCs): The Manager, International Safety. Temporary Revision (TR) 5–1, dated Branch, ANM–116, Transport Airplane February 11, 2011, to Part 2—Airworthiness Directorate, FAA, has the authority to The Proposed Amendment Limitation Inspections (ALI)—Structures, of approve AMOCs for this AD, if requested Appendix A, Airworthiness Limitations (AL), using the procedures found in 14 CFR 39.19. Accordingly, under the authority of the EMBRAER 190 Maintenance Review In accordance with 14 CFR 39.19, send your delegated to me by the Administrator, Board Report, MRB–1928, Revision 5, dated request to your principal inspector or local the FAA proposes to amend 14 CFR part November 11, 2010; with the thresholds and Flight Standards District Office, as 39 as follows: intervals stated in these documents. The appropriate. If sending information directly initial compliance times for the tasks are to the International Branch, send it to ATTN: PART 39—AIRWORTHINESS stated in the ‘‘Implementation Plan’’ section Kathrine Rask, Aerospace Engineer, DIRECTIVES of Appendix A, Airworthiness Limitations International Branch, ANM–116, Transport (AL), of the EMBRAER 190 Maintenance Airplane Directorate, FAA, 1601 Lind ■ 1. The authority citation for part 39 Review Board Report, MRB–1928, Revision 5, Avenue SW., Renton, WA 98057–3356; continues to read as follows: dated November 11, 2010. telephone: (425) 227–2180; fax: (425) 227– 1149. Information may be emailed to: 9- Authority: 49 U.S.C. 106(g), 40113, 44701. (h) Retained No Alternative Actions or [email protected]. Intervals Before using any approved AMOC, notify § 39.13 [Amended] This paragraph restates the actions your appropriate principal inspector, or ■ 2. The FAA amends § 39.13 by required by paragraph (i) of AD 2012–23–09, lacking a principal inspector, the manager of removing airworthiness directive AD Amendment 39–17265 (77 FR 73270, the local flight standards district office/

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certificate holding district office. The AMOC reinforced plastic (CFRP) main landing office (telephone (800) 647–5527) is in approval letter must specifically reference gear (MLG) outboard door had detached. the ADDRESSES section. Comments will this AD. In addition, we received reports of be available in the AD docket shortly (2) Airworthy Product: For any requirement broken recessed heads on titanium after receipt. in this AD to obtain corrective actions from a manufacturer, use these actions if they are attachment bolts of the operating rod FOR FURTHER INFORMATION CONTACT: Tom FAA-approved. Corrective actions are brackets on the modified CFRP MLG Rodriguez, Aerospace Engineer, considered FAA-approved if they were outboard doors. This proposed AD International Branch, ANM–116, approved by the State of Design Authority (or would require a detailed inspection of Transport Airplane Directorate, FAA, its delegated agent, or the Design Approval the CFRP MLG outboard door for play 1601 Lind Avenue SW., Renton, WA Holder with a State of Design Authority’s or cracks in the recessed countersunk 98057–3356; telephone (425) 227–1137; design organization approval, as applicable). heads of the operating rod bracket fax (425) 227–1149. For a repair method to be approved, the attachment bolts; replacement of the SUPPLEMENTARY INFORMATION: repair approval must specifically refer to this bolt if necessary; and, for certain AD. You are required to ensure the product Comments Invited is airworthy before it is returned to service. airplanes, modification of the CFRP MLG outboard doors and attachment to We invite you to send any written (l) Related Information the MLG. We are proposing this AD to relevant data, views, or arguments about (1) Refer to Mandatory Continuing detect and correct the affected MLG this proposed AD. Send your comments Airworthiness Information (MCAI) Brazilian from moving to the down and locked to an address listed under the Airworthiness Directive 2012–10–02, dated position, which could result in MLG ADDRESSES section. Include ‘‘Docket No. October 29, 2012, for related information. collapse during landing or roll-out, and FAA–2014–0007; Directorate Identifier This MCAI may be found in the AD docket consequent damage to the airplane and on the Internet at http://www.regulations.gov 2012–NM–038–AD’’ at the beginning of by searching for and locating Docket No. injury to passengers. your comments. We specifically invite FAA–2014–0008. DATES: We must receive comments on comments on the overall regulatory, (2) For service information identified in this proposed AD by March 20, 2014. economic, environmental, and energy this AD, contact Embraer S.A., Technical ADDRESSES: You may send comments by aspects of this proposed AD. We will Publications Section (PC 060), Av. Brigadeiro any of the following methods: consider all comments received by the ˜ Faria Lima, 2170—Putim—12227–901 Sao • Federal eRulemaking Portal: Go to closing date and may amend this Jose dos Campos—SP—BRASIL; telephone proposed AD based on those comments. +55 12 3927–5852 or +55 12 3309–0732; fax http://www.regulations.gov. Follow the +55 12 3927–7546; email distrib@ instructions for submitting comments. We will post all comments we embraer.com.br; Internet http:// • Fax: (202) 493–2251. receive, without change, to http:// www.flyembraer.com. You may view this • Mail: U.S. Department of www.regulations.gov, including any service information at the FAA, Transport Transportation, Docket Operations, M– personal information you provide. We Airplane Directorate, 1601 Lind Avenue SW., 30, West Building Ground Floor, Room will also post a report summarizing each Renton, WA. For information on the W12–140, 1200 New Jersey Avenue SE., substantive verbal contact we receive availability of this material at the FAA, call Washington, DC 20590. about this proposed AD. 425–227–1221. • Hand Delivery: U.S. Department of Discussion Issued in Renton, Washington, on January Transportation, Docket Operations, M– 22, 2014. 30, West Building Ground Floor, Room The European Aviation Safety Agency Jeffrey E. Duven, W12–140, 1200 New Jersey Avenue SE., (EASA), which is the Technical Agent Manager, Transport Airplane Directorate, Washington, DC, between 9 a.m. and 5 for the Member States of the European Aircraft Certification Service. p.m., Monday through Friday, except Community, has issued Airworthiness [FR Doc. 2014–02159 Filed 1–31–14; 8:45 am] Federal holidays. Directive 2012–0023, dated February 6, BILLING CODE 4910–13–P For service information identified in 2012 (referred to after this as the this proposed AD, contact Fokker Mandatory Continuing Airworthiness Services B.V., Technical Services Dept., Information, or ‘‘the MCAI’’), to correct DEPARTMENT OF TRANSPORTATION P.O. Box 1357, 2130 EL Hoofddorp, the an unsafe condition for the specified Netherlands; telephone +31 (0)88–6280– products. The MCAI states: Federal Aviation Administration 350; fax +31 (0)88–6280–111; email In 2005, several occurrences were reported [email protected]; Internet where the bracket of the rod in the Carbon 14 CFR Part 39 http://www.myfokkerfleet.com. You may Fibre Reinforced Plastic (CFRP) MLG [Docket No. FAA–2014–0007; Directorate view this referenced service information outboard door had detached, preventing the Identifier 2012–NM–038–AD] at the FAA, Transport Airplane MLG to lock properly when selected down. Directorate, 1601 Lind Avenue SW., Prompted by these reports, CAA–NL [Civil RIN 2120–AA64 Aviation Authority-Netherlands] issued AD Renton, WA. For information on the NL–2006–001 (EASA approval 2006–0002) to Airworthiness Directives; Fokker availability of this material at the FAA, require the inspection and modification of Services B.V. Airplanes call 425–227–1221. the attachment of the operating rod bracket Examining the AD Docket as detailed in Fokker Service Bulletin (SB) AGENCY: Federal Aviation SBF100–52–080. Administration (FAA), DOT. You may examine the AD docket on After that [EASA] AD was issued, several ACTION: Notice of proposed rulemaking the Internet at http:// operators reported broken recessed heads of (NPRM). www.regulations.gov; or in person at the titanium attachment bolts of the operating Docket Management Facility between 9 rod bracket on modified (i.e. post-SBF100– 52–080) CFRP MLG outboard doors. In such SUMMARY: We propose to adopt a new a.m. and 5 p.m., Monday through a situation, the remaining bolt shafts can get airworthiness directive (AD) for all Friday, except Federal holidays. The AD pulled through the external repair patch and Fokker Services B.V. Model F.28 Mark docket contains this proposed AD, the the carbon fibre door outer skin, causing the 0070 and 0100 airplanes. This proposed regulatory evaluation, any comments operating rod, with the detached bracket, to AD was prompted by reports that the received, and other information. The get stuck between the MLG main fitting and bracket of the rod in the carbon fiber street address for the Docket Operations wing lower skin. The primary factor to the

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cause of breaking bolt heads has been • Fokker Component Service Bulletin develop on other products of the same determined to be incorrect adjustment of the D13312–52–09, December 12, 2005; type design. MLG outboard door. • Fokker Component Service Bulletin This condition, if not detected and D13312–52–015, dated November 17, Differences Between This Proposed AD corrected, would prevent the affected MLG and the MCAI or Service Information from moving to the down and locked 2011; and • position, possibly resulting in MLG collapse Fokker Service Bulletin SBF100– Paragraph (2) of the MCAI specifies to during landing or roll-out and consequent 52–090, dated November 17, 2011, ‘‘accomplish one of the actions specified damage to the aeroplane and/or injury to the including Fokker Manual Change occupants. in paragraph B of part 1 of the Notification F100–147, dated October accomplishment instructions of Fokker To address this potential unsafe condition, 28, 2011, and Fokker Service Bulletin Fokker Services has published SBF100–52– Services SBF100–52–090’’ before further Change Notification SBF100–52– 090, providing modification instructions to flight. However, this proposed AD 090101, dated January 24, 2012. install an improved attachment of the MLG requires (before further flight) replacing The actions described in this service outboard door operating rod. the operating rod bracket attachment For the reasons described above, this new information are intended to correct the with a new bolt, in accordance with the [EASA] AD requires a one-time detailed unsafe condition identified in the inspection for play or cracks in the recessed MCAI. Accomplishment Instructions of Fokker bolt heads and, depending on findings, Service Bulletin SBF100–52–090, dated applicable corrective actions, modification of FAA’s Determination and Requirements November 17, 2011, including Fokker the operating rod bracket attachment to the of This Proposed AD Manual Change Notification F100–147, CFRP MLG outboard door, and introduction of a weaker (aluminium) bolt in the This product has been approved by dated October 28, 2011, including attachment of the MLG outboard door the aviation authority of another Fokker Service Bulletin Change operating rod. country, and is approved for operation Notification SBF100–52–090101, dated You may examine the MCAI in the in the United States. Pursuant to our January 24, 2012. This difference has AD docket on the Internet at http:// bilateral agreement with the State of been coordinated with EASA. Design Authority, we have been notified www.regulations.gov by searching for Costs of Compliance and locating it in Docket No. FAA– of the unsafe condition described in the 2014–0007. MCAI and service information We estimate that this proposed AD referenced above. We are proposing this affects 4 airplanes of U.S. registry. Relevant Service Information AD because we evaluated all pertinent Fokker Services B.V. has issued the information and determined an unsafe We estimate the following costs to following service information: condition exists and is likely to exist or comply with this proposed AD:

ESTIMATED COSTS

Cost Cost on U.S. Action Labor cost Parts cost per product operators

Modification ...... 12 work-hours × $85 per hour = $1,020 ...... $10,000 $11,020 $44,080

Authority for This Rulemaking under Executive Order 13132. This The Proposed Amendment proposed AD would not have a Title 49 of the United States Code Accordingly, under the authority substantial direct effect on the States, on specifies the FAA’s authority to issue delegated to me by the Administrator, the relationship between the national rules on aviation safety. Subtitle I, the FAA proposes to amend 14 CFR part Government and the States, or on the section 106, describes the authority of 39 as follows: distribution of power and the FAA Administrator. ‘‘Subtitle VII: responsibilities among the various Aviation Programs,’’ describes in more PART 39—AIRWORTHINESS levels of government. detail the scope of the Agency’s DIRECTIVES authority. For the reasons discussed above, I ■ certify this proposed regulation: 1. The authority citation for part 39 We are issuing this rulemaking under continues to read as follows: the authority described in ‘‘Subtitle VII, 1. Is not a ‘‘significant regulatory Part A, Subpart III, Section 44701: action’’ under Executive Order 12866; Authority: 49 U.S.C. 106(g), 40113, 44701. General requirements.’’ Under that 2. Is not a ‘‘significant rule’’ under the § 39.13 [Amended] section, Congress charges the FAA with DOT Regulatory Policies and Procedures ■ 2. The FAA amends § 39.13 by adding promoting safe flight of civil aircraft in (44 FR 11034, February 26, 1979); the following new AD: air commerce by prescribing regulations 3. Will not affect intrastate aviation in for practices, methods, and procedures Fokker Services B.V.: Docket No. FAA– Alaska; and 2014–0007; Directorate Identifier 2012– the Administrator finds necessary for NM–038–AD. safety in air commerce. This proposed 4. Will not have a significant regulation is within the scope of that economic impact, positive or negative, (a) Comments Due Date authority because it addresses an unsafe on a substantial number of small entities We must receive comments by March 20, condition that is likely to exist or under the criteria of the Regulatory 2014. Flexibility Act. develop on products identified in this (b) Affected ADs rulemaking action. List of Subjects in 14 CFR Part 39 None. Regulatory Findings Air transportation, Aircraft, Aviation (c) Applicability We determined that this proposed AD safety, Incorporation by reference, This AD applies to Fokker Services B.V. would not have federalism implications Safety. Model F.28 Mark 0070 and 0100 airplanes,

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certificated in any category, all serial date of this AD: Do the modification within considered FAA-approved if they were numbers. 24 months after the effective date of this AD. approved by the State of Design Authority (or (2) For airplanes on which an aluminum its delegated agent, or the DAH with a State (d) Subject door is installed as of the effective date of of Design Authority’s design organization Air Transport Association (ATA) of this AD: Do the modification prior to the approval). For a repair method to be America Code 52, Doors. installation of the CFRP MLG outboard door. approved, the repair approval must specifically refer to this AD. You are required (e) Reason Note 1 to paragraph (i) of this AD: The aluminum MLG outboard doors and the to ensure the product is airworthy before it This AD was prompted by reports that the CFRP MLG outboard doors are two-way is returned to service. bracket of the rod in the carbon fiber interchangeable. reinforced plastic (CFRP) main landing gear (m) Related Information (MLG) outboard door had detached. In (j) Parts Installation Prohibition (1) Refer to Mandatory Continuing addition, we received reports of broken Airworthiness Information EASA As of the effective date of this AD, do not recessed heads on titanium attachment bolts Airworthiness Directive 2012–0023, dated install on any airplane a MLG outboard door of the operating rod brackets on the modified February 6, 2012, for related information. having part number (P/N) D13310–401 CFRP MLG outboard doors. We are issuing This MCAI may be found in the AD docket through –418 or any MLG outboard door this AD to detect and correct the affected on the Internet at http://www.regulations.gov assembly having P/N D13312–401 through MLG from moving to the down and locked by searching for and locating it in Docket No. –410. position, which could result in MLG collapse FAA–2014–0007. during landing or roll-out, and consequent Note 2 to paragraph (j) of this AD: Civil (2) For service information identified in damage to the airplane and injury to Aviation Authority-Netherlands (CAA–NL) this AD, contact Fokker Services B.V., passengers. AD NL–2006–001 (European Aviation Safety Technical Services Dept., P.O. Box 1357, Agency (EASA) approval 2006–002) contains 2130 EL Hoofddorp, the Netherlands; (f) Compliance the information on how to modify all spare telephone +31 (0)88–6280–350; fax +31 Comply with this AD within the MLG outboard door assemblies having P/N (0)88–6280–111; email compliance times specified, unless already D13312–401 through –410, to P/N D13312– [email protected]; Internet done. 7XX standard, as specified in the http://www.myfokkerfleet.com. You may Accomplishment Instructions of Fokker (g) Inspection view this service information at the FAA, Component Service Bulletin D13312–52–09, Transport Airplane Directorate, 1601 Lind Within 9 months after the effective date of December 12, 2005. Avenue SW., Renton, WA. For information this AD, do a detailed inspection of the CFRP on the availability of this material at the (k) Parts Installation Limitation MLG outboard door for play and cracks in the FAA, call 425–227–1221. recessed countersunk heads of the operating As of the effective date of this AD, do not rod bracket attachment bolts, in accordance install on any airplane a P/N D13310–701 Issued in Renton, Washington, on January with Part 1 of the Accomplishment through–708 MLG outboard door or a P/N 22, 2014. Instructions of Fokker Service Bulletin D13312–702 through–711 MLG outboard Jeffrey E. Duven, SBF100–52–090, dated November 17, 2011, door assembly, unless the part has been including Fokker Manual Change inspected for cracks in the recessed bolt Manager, Transport Airplane Directorate, Notification F100–147, dated October 28, heads, all applicable corrective actions have Aircraft Certification Service. 2011, and Fokker Service Bulletin Change been done, and the CFRP MLG outboard door [FR Doc. 2014–02161 Filed 1–31–14; 8:45 am] Notification SBF100–52–090101, dated has been modified, in accordance with the BILLING CODE 4910–13–P January 24, 2012. Accomplishment Instructions of Fokker Component Service Bulletin D13312–52–015, (h) Corrective Action dated November 17, 2011. If, during the inspection required by DEPARTMENT OF HEALTH AND paragraph (g) of this AD, any play or crack (l) Other FAA AD Provisions HUMAN SERVICES is found in any countersunk bolt head, and The following provisions also apply to this the configuration deviation list (CDL) item AD: Food and Drug Administration 52–07 cannot be applied: Before further (1) Alternative Methods of Compliance flight, replace the bolt with a new bolt, in (AMOCs): The Manager, International 21 CFR Parts 16, 225, 500, 507, and 579 accordance with the Accomplishment Branch, ANM–116, Transport Airplane Instructions of Fokker Service Bulletin Directorate, FAA, has the authority to [Docket No. FDA–2011–N–0922] SBF100–52–090, dated November 17, 2011, approve AMOCs for this AD, if requested RIN 0910–AG10 including Fokker Manual Change using the procedures found in 14 CFR 39.19. Notification F100–147, dated October 28, In accordance with 14 CFR 39.19, send your Current Good Manufacturing Practice 2011, and Fokker Service Bulletin Change request to your principal inspector or local and Hazard Analysis and Risk-Based Notification SBF100–52–090101, dated Flight Standards District Office, as January 24, 2012. appropriate. If sending information directly Preventive Controls for Food for to the International Branch, send it to ATTN: Animals; Extension of Comment (i) Modification Prior to CFRP Door Tom Rodriguez, Aerospace Engineer, Period Installation International Branch, ANM–116, Transport At the applicable time specified in Airplane Directorate, FAA, 1601 Lind AGENCY: Food and Drug Administration, paragraph (i)(1) or (i)(2) of this AD: Modify Avenue SW., Renton, WA 98057–3356; HHS. the CFRP MLG outboard doors and telephone (425) 227–1137; fax (425) 227– ACTION: Proposed rule; extension of attachment to the MLG, in accordance with 1149. Information may be emailed to: 9- comment period. Part 2 of the Accomplishment Instructions of [email protected]. Fokker Service Bulletin SBF100–52–090, Before using any approved AMOC, notify SUMMARY: The Food and Drug dated November 17, 2011, including Fokker your appropriate principal inspector, or Administration (FDA or we) is Manual Change Notification F100–147, dated lacking a principal inspector, the manager of extending the comment period for the October 28, 2011, and Fokker Service the local flight standards district office/ notice of proposed rulemaking that Bulletin Change Notification SBF100–52– certificate holding district office. The AMOC appeared in the Federal Register of 090101, dated January 24, 2012. approval letter must specifically reference Accomplishing the modification in this this AD. October 29, 2013 (78 FR 64736), entitled paragraph terminates the inspection required (2) Airworthy Product: For any requirement ‘‘Current Good Manufacturing Practice by paragraph (g) of this AD. in this AD to obtain corrective actions from and Hazard Analysis and Risk-Based (1) For airplanes on which a CFRP MLG a manufacturer, use these actions if they are Preventive Controls for Food for outboard door is installed as of the effective FAA-approved. Corrective actions are Animals ’’ and its information collection

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provisions. We are taking this action in ‘‘Search’’ box and follow the prompts proposed rule. To clarify, FDA is response to requests for an extension to and/or go to the Division of Dockets requesting comment on all issues raised allow interested persons more time to Management, 5630 Fishers Lane, Rm. by the proposed rule. comment given that in addition to the 1061, Rockville, MD 20852. II. Paperwork Reduction Act of 1995 proposed preventive control FOR FURTHER INFORMATION CONTACT: requirements, the proposed current With regard to the proposed rule: Kim Interested persons may either submit good manufacturing practice (CGMP) electronic comments regarding the Young, Center for Veterinary Medicine, _ requirements are also new to the animal Food and Drug Administration, 7519 information collection to oira food industry, unlike the human food Standish Pl., Rockville, MD 20855, 240– [email protected] or fax written industry. 276–2207. comments to the Office of Information We also are taking this action to keep With regard to the information and Regulatory Affairs, OMB, Attn: FDA the comment period for the information collection: Domini Bean, Office of Desk Officer, FAX: 202–395–7285. All collection provisions associated with Information Management, Food and comments should be identified with the the rule consistent with the comment Drug Administration, 1350 Piccard Dr., title ‘‘Current Good Manufacturing period for the proposed rule. PI50–400T, Rockville, MD 20850, Practice and Hazard Analysis and Risk- Based Preventive Controls for Food for DATES: FDA is extending the comment [email protected]. Animals.’’ period on the proposed rule and its SUPPLEMENTARY INFORMATION: information collection provisions. III. Request for Comments I. Background Submit either electronic or written Interested persons may submit either comments on the proposed rule and the In the Federal Register of October 29, electronic comments regarding the information collection by March 31, 2013, we published a proposed rule proposed rule to http:// 2014. entitled ‘‘Current Good Manufacturing www.regulations.gov or written ADDRESSES: You may submit comments, Practice and Hazard Analysis and Risk- comments to the Division of Dockets identified by Docket No. FDA–2011–N– Based Preventive Controls for Food for Management (see ADDRESSES). It is only 0922 and/or Regulatory Information Animals’’ with a 120-day comment necessary to send one set of comments. Number (RIN) 0910–AG10, by any of the period on the provisions of the Identify comments with the docket following methods, except that proposed rule and on the information number found in brackets in the comments on information collection collection provisions that are subject to heading of this document. Received issues under the PRA must be submitted review by OMB under the PRA (44 comments may be seen in the Division to the Office of Information and U.S.C. 3501–3520). of Dockets Management between 9 a.m. Regulatory Affairs, Office of FDA has received requests for an and 4 p.m., Monday through Friday, and Management and Budget (OMB) (see the extension of the comment period on the will be posted to the docket at http:// ‘‘Paperwork Reduction Act of 1995’’ proposed rule. The requests conveyed www.regulations.gov. section of this document). concern that the current 120-day comment period does not allow time to Dated: January 28, 2014. Electronic Submissions develop a meaningful response to the Leslie Kux, Submit electronic comments in the proposed rule because, unlike the Assistant Commissioner for Policy. following way: human food industry, in addition to the [FR Doc. 2014–02111 Filed 1–31–14; 8:45 am] Federal eRulemaking Portal: http:// proposed preventive controls, the BILLING CODE 4160–01–P www.regulations.gov. Follow the proposed CGMPs are new to the animal instructions for submitting comments. food industry. The requests also stated an extended comment period would DEPARTMENT OF HEALTH AND Written Submissions allow interested persons an opportunity HUMAN SERVICES to consider the interrelationship Submit written submissions in the Food and Drug Administration following ways: between this proposed rule and the proposed rules entitled ‘‘Foreign Mail/Hand delivery/Courier (for paper 21 CFR Part 17 submissions): Division of Dockets Supplier Verification Programs for Management (HFA–305), Food and Drug Importers of Food for Humans and [Docket No. FDA–2014–N–0113] Administration, 5630 Fishers Lane, Rm. Animals’’ (78 FR 45729, July 29, 2013) 1061, Rockville, MD 20852. and ‘‘Accreditation of Third-Party Maximum Civil Money Penalty Instructions: All submissions received Auditors/Certification Bodies to Amounts; Civil Money Penalty must include the Agency name, Docket Conduct Food Safety Audits and to Complaints No. FDA–2011–N–0922, and RIN 0910– Issue Certifications’’ (78 FR 45782, July AGENCY: Food and Drug Administration, AG10 for this rulemaking. All comments 29, 2013). FDA has considered the HHS. received may be posted without change requests and is granting an extension of ACTION: Proposed rule. to http://www.regulations.gov, including the comment period to March 31, 2014, any personal information provided. For for the ‘‘Current Good Manufacturing SUMMARY: The Food and Drug additional information on submitting Practice and Hazard Analysis and Risk- Administration (FDA) is publishing this comments, see the ‘‘Request for Based Preventive Controls for Food for companion proposed rule to the direct Comments’’ heading of the Animals’’ proposed rule to allow final rule, issuing a new regulation to SUPPLEMENTARY INFORMATION section of interested persons additional time to adjust for inflation the maximum civil this document. submit comments. We also are money penalty (CMP) amounts for the Docket: For access to the docket to extending the comment period for the various CMP authorities within our read background documents or information collection provisions to jurisdiction and to amend the process comments received, go to http:// March 31, 2014, to make the comment for initiating certain CMP administrative www.regulations.gov, and insert the period for the information collection actions. We are taking these actions to docket number, found in brackets in the provisions the same as the comment comply with the Federal Civil Penalties heading of this document, into the period for the provisions of the Inflation Adjustment Act of 1990

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(FCPIAA), as amended, and to SUPPLEMENTARY INFORMATION: The last years of age or to verify age in streamline our internal processes. The CMP adjustment was published in the accordance with 21 CFR 1140.14(b). last CMP adjustment was published in Federal Register of November 12, 2008 These complaints have almost always the Federal Register of November 12, (73 FR 66750). been straightforward, they involve 2008, and the FCPIAA requires Federal simple fact patterns, and they do not I. Background Agencies to adjust their CMPs at least require a complex legal analysis. Over once every 4 years. We are using direct A. CMP Amounts time, such CMP complaints have final rulemaking for these actions FDA is amending § 17.2 (21 CFR 17.2) increased in volume, and we anticipate that the volume will continue to be because the Agency expects that there to update the maximum CMP amounts. relatively high. will be no significant adverse comment In general, FCPIAA requires Federal on the rule. We have determined that, with certain Agencies to issue regulations to adjust limitations and controls, non-attorney DATES: Submit either electronic or for inflation each CMP provided by law staff outside OCC can carry out the written comments on the proposed rule within their jurisdiction. (28 U.S.C. function of reviewing the evidence and by April 21, 2014. If FDA receives any 2461 note, as amended by the Debt signing the tobacco retailer CMP significant adverse comments, the Collection Improvement Act of 1996 (31 complaints in appropriate Agency will publish a document in the U.S.C. 3701)). FCPIAA directs Agencies circumstances. The proposed Federal Register withdrawing the direct to adjust the CMP provided by law by amendment to § 17.5(a) would give this final rule within 30 days after the October 23, 1996, and to make decisionmaking authority to the Chief comment period ends. FDA will then additional adjustments at least once Counsel, who could ensure the proceed to respond to comments under every 4 years thereafter. The authority to sign complaints is only this proposed rule using the usual adjustments are based on changes in the given to appropriate staff and under notice and comment procedures. cost of living, and the FCPIAA defines appropriate circumstances. Under the ADDRESSES: You may submit comments, the cost of living adjustment as the proposal, the Chief Counsel would have identified by Docket No. FDA–2014–N– percentage (if any) for each civil the authority to set and revise 0113, by any of the following methods. monetary penalty by which the limitations and controls, and to Consumer Price Index for the month of Electronic Submissions broaden, limit, or rescind any June of the calendar year preceding the authorizations to sign tobacco retailer Submit electronic comments in the adjustment, exceeds the Consumer Price CMP complaints. following way: Index for the month of June of the The limitations could include, for • Federal eRulemaking Portal: http:// calendar year in which the amount of example, limiting the delegation to www.regulations.gov. Follow the such civil monetary penalty was last set situations where the CMP amount is instructions for submitting comments. or adjusted pursuant to law (28 U.S.C. below a certain dollar value; the CMP 2461 note, section 5(b)). involves specified tobacco retailer Written Submissions FCPIAA also prescribes a rounding charges that OCC has determined are Submit written submissions in the method based on the size of the penalty routine and predictable and do not following ways: after the calculated increase, but states require a complex legal analysis; and • Mail/Hand delivery/Courier (for that the adjustment of a CMP may not involve charges for which FDA has paper submissions): Division of Dockets exceed 10 percent of the penalty. developed OCC-approved templates, Management (HFA–305), Food and Drug FCPIAA defines a CMP as any penalty, parameters, and procedures. The Administration, 5630 Fishers Lane, rm. fine, or other sanction that is for a controls could include, for example, an 1061, Rockville, MD 20852. specific monetary amount as provided audit or other quality review. by Federal law, or has a maximum This proposed rule incorporates Instructions: All submissions received amount provided for by Federal law, requirements specifically set forth in the must include the Agency name and and is assessed or enforced by an agency FCPIAA requiring FDA to issue a Docket No. FDA–2014–N–0113 for this pursuant to Federal law, and is assessed regulation implementing inflation rulemaking. All comments received may or enforced pursuant to an adjustments for all its CMP provisions. be posted without change to http:// administrative proceeding or a civil These technical changes, required by www.regulations.gov, including any action in the Federal Courts (28 U.S.C. law, do not substantively alter the personal information provided. For 2461 note, section 3(2)). existing regulatory framework, nor do additional information on submitting they in any way affect the terms under comments, see the ‘‘Comments’’ heading B. CMP Complaints which CMPs are assessed by FDA. The SUPPLEMENTARY INFORMATION of the Currently, under § 17.5(a) (21 CFR formula for the amount of the penalty section of this document. 17.5(a)), CMP complaints against adjustment is prescribed by Congress in Docket: For access to the docket to retailers of tobacco products may only the FCPIAA, and these changes are not read background documents or be signed by attorneys in FDA’s Office subject to the exercise of discretion by comments received, go to http:// of the Chief Counsel (OCC). Given the FDA. The amendment to § 17.5(a) www.regulations.gov and insert the routine nature of many of these CMPs, changes an internal process. docket number, found in brackets in the FDA is amending this regulation to This proposed rule is a companion to heading of this document, into the permit the Chief Counsel to designate the direct final rule published elsewhere ‘‘Search’’ box and follow the prompts other FDA staff, such as those in FDA’s in this issue of the Federal Register. and/or go to the Division of Dockets Center for Tobacco Products, to sign a This companion proposed rule and the Management, 5630 Fishers Lane, rm. tobacco retailer CMP complaint. direct final rule are identical in 1061, Rockville, MD 20852. Based on FDA’s experience, the large substance. This companion proposed FOR FURTHER INFORMATION CONTACT: majority of the tobacco retailer rule will provide the procedural Jarilyn Dupont, Office of Policy, Food complaints to date have involved framework to proceed with standard and Drug Administration, 10903 New alleged violations of the requirement to notice-and-comment rulemaking in the Hampshire Ave., Silver Spring, MD not sell cigarettes and smokeless event the direct final rule receives 20903, 301–796–4830. tobacco to any person younger than 18 significant adverse comment and is

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withdrawn. The comment period for the the human environment. Therefore, Section 202(a) of the Unfunded companion proposed rule runs neither an environmental assessment Mandates Reform Act of 1995 requires concurrently with the comment period nor an environmental impact statement that Agencies prepare a written of the direct final rule. Any comments is required. statement, which includes an received under the companion proposed assessment of anticipated costs and III. Paperwork Reduction Act rule will be treated as comments benefits, before proposing ‘‘any rule that regarding the direct final rule and vice This proposed rule contains no includes any Federal mandate that may versa. collection of information. Therefore, result in the expenditure by State, local, A significant adverse comment is one clearance by the Office of Management and tribal governments, in the aggregate, that explains why the rule would be and Budget under the Paperwork or by the private sector, of $100,000,000 inappropriate, including challenges to Reduction Act of 1995 is not required. or more (adjusted annually for inflation) the rule’s underlying premise or in any one year.’’ The current threshold approach, or would be ineffective or IV. Federalism after adjustment for inflation is $141 unacceptable without change. A FDA has analyzed this proposed rule million, using the most current (2012) comment recommending a rule change in accordance with the principles set Implicit Price Deflator for the Gross in addition to this rule will not be forth in Executive Order 13132. FDA Domestic Product. FDA does not expect considered a significant adverse has determined that the rule does not this proposed rule, when finalized, to comment unless the comment states contain policies that have substantial result in any 1-year expenditure that why this rule would be ineffective direct effects on the States, on the would meet or exceed this amount. without the additional change. relationship between the National VI. Comments If no significant adverse comment is Government and the States, or on the received in response to the direct final distribution of power and Interested persons may submit either rule, no further action will be taken responsibilities among the various electronic comments regarding this related to the companion proposed rule. levels of government. Accordingly, the document to http://www.regulations.gov Instead, we will publish a confirmation Agency has concluded that the rule does or written comments to the Division of notice in the Federal Register within 30 not contain policies that have Dockets Management (see ADDRESSES). It days after the comment period ends. We federalism implications as defined in is only necessary to send one set of intend the direct final rule to become the Executive order and, consequently, comments. Identify comments with the effective 30 days after publication of the a federalism summary impact statement docket number found in brackets in the confirmation notice. is not required. heading of this document. Received If we receive significant adverse comments may be seen in the Division comments, we will withdraw the direct V. Analysis of Impacts of Dockets Management between 9 a.m. final rule. We will proceed to respond and 4 p.m., Monday through Friday, and FDA has examined the impacts of the to all the comments received regarding will be posted to the docket at http:// proposed rule under Executive Order the direct final rule, treating those www.regulations.gov. 12866, Executive Order 13563, the comments as comments to this proposed Regulatory Flexibility Act (5 U.S.C. List of Subjects in 21 CFR Part 17 rule. The Agency will address the 601–612), and the Unfunded Mandates comments in the subsequent final rule. Administrative practice and Reform Act of 1995 (Pub. L. 104–4). We will not provide additional procedure, Penalties. Executive Orders 12866 and 13563 opportunity for comment. If we receive Therefore, under the Federal Food, direct Agencies to assess all costs and a significant adverse comment that Drug, and Cosmetic Act and the Public benefits of available regulatory applies to part of the rule and that part Health Service Act, and under authority alternatives and, when regulation is may be severed from the remainder of delegated to the Commissioner of Food necessary, to select regulatory the rule, we may adopt as final those and Drugs, FDA proposes that 21 CFR approaches that maximize net benefits parts of the rule that are not the subject part 17 be amended as follows: (including potential economic, of significant adverse comment. environmental, public health and safety, For additional background PART 17—CIVIL MONEY PENALTIES and other advantages; distributive information, see the corresponding HEARINGS impacts; and equity). The Agency direct final rule published elsewhere in believes that this proposed rule is not a ■ this issue of the Federal Register. 1. The authority citation for 21 CFR This proposed rule: significant regulatory action under part 17 continues to read as follows: • Revises the table in § 17.2 to adjust Executive Order 12866. Authority: 21 U.S.C. 331, 333, 337, 351, the maximum CMP amounts for The Regulatory Flexibility Act 352, 355, 360, 360c, 360f, 360i, 360j, 371; 42 inflation as prescribed by FCPIAA. requires Agencies to analyze regulatory U.S.C. 262, 263b, 300aa–28; 5 U.S.C. 554, • Revises § 17.5(a) to provide options that would minimize any 555, 556, 557. authority for the Chief Counsel to significant impact of a rule on small ■ 2. Section 17.2 is revised to read as delegate the responsibility for initiating entities. Because the proposed rule follows: a CMP administrative action against a simply adjusts the maximum amount of tobacco retailer. CMPs administered by FDA, the § 17.2 Maximum penalty amounts. adjustment is required by the FCPIAA, The following table shows maximum II. Environmental Impact and the proposed rule makes a change civil monetary penalties associated with The Agency has determined under 21 to FDA’s internal processes, the Agency the statutory provisions authorizing CFR 25.33 that this action is of a type certifies that the proposed rule will not civil monetary penalties under the that does not individually or have a significant economic impact on Federal Food, Drug, and Cosmetic Act cumulatively have a significant effect on a substantial number of small entities. or the Public Health Service Act.

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CIVIL MONETARY PENALTIES AUTHORITIES ADMINISTERED BY FDA AND ADJUSTED MAXIMUM PENALTY AMOUNTS

Former Adjusted maximum Date of maximum U.S.C. section penalty Assessment method last penalty penalty amount figure or amount (in dollars) adjustment (in dollars)

21 U.S.C.

333(b)(2)(A) ...... 60,000 For each of the first two violations in any 10-year period ... 2013 65,000 333(b)(2)(B) ...... 1,200,000 For each violation after the second conviction in any 10- 2013 1,275,000 year period. 333(b)(3) ...... 120,000 Per violation...... 2013 130,000 333(f)(1)(A) ...... 16,500 Per violation...... 2008 16,500 333(f)(1)(A) ...... 1,200,000 For the aggregate of violations ...... 2013 1,275,000 333(f)(2)(A) ...... 55,000 Per individual...... 2013 60,000 333(f)(2)(A) ...... 300,000 Per ‘‘any other person’’ ...... 2013 325,000 333(f)(2)(A) ...... 600,000 For all violations adjudicated in a single proceeding ...... 2013 650,000 333(f)(3)(A) ...... 10,000 For all violations adjudicated in a single proceeding ...... 2013 11,000 333(f)(3)(B) ...... 10,000 For each day the violation is not corrected after a 30-day 2013 11,000 period following notification until the violation is corrected. 333(f)(4)(A)(i) ...... 250,000 Per violation...... 2013 275,000 333(f)(4)(A)(i) ...... 1,000,000 For all violations adjudicated in a single proceeding ...... 2013 1,075,000 333(f)(4)(A)(ii) ...... 250,000 For the first 30-day period (or any portion thereof) of con- 2013 275,000 tinued violation following notification. 333(f)(4)(A)(ii) ...... 1,000,000 For any 30-day period, where the amount doubles for 2013 1,075,000 every 30-day period of continued violation after the first 30-day violation. 333(f)(4)(A)(ii) ...... 10,000,000 For all violations adjudicated in a single proceeding ...... 2013 10,850,000 333(f)(9)(A) ...... 15,000 Per violation...... 2009 15,000 333(f)(9)(A) ...... 1,000,000 For all violations adjudicated in a single proceeding ...... 2013 1,050,000 333(f)(9)(B)(i)(I) ...... 250,000 Per violation...... 2013 275,000 333(f)(9)(B)(i)(I) ...... 1,000,000 For all violations adjudicated in a single proceeding ...... 2013 1,050,000 333(f)(9)(B)(i)(II) ...... 250,000 For the first 30-day period (or any portion thereof) of con- 2013 275,000 tinued violation following notification. 333(f)(9)(B)(i)(II) ...... 1,000,000 For any 30-day period, where the amount doubles for 2013 1,050,000 every 30-day period of continued violation after the first 30-day violation. 333(f)(9)(B)(i)(II) ...... 10,000,000 For all violations adjudicated in a single proceeding ...... 2013 10,525,000 333(f)(9)(B)(ii)(I) ...... 250,000 Per violation...... 2013 275,000 333(f)(9)(B)(ii)(I) ...... 1,000,000 For all violations adjudicated in a single proceeding ...... 2013 1,050,000 333(f)(9)(B)(ii)(II) ...... 250,000 For the first 30-day period (or any portion thereof) of con- 2013 275,000 tinued violation following notification. 333(f)(9)(B)(ii)(II) ...... 1,000,000 For any 30-day period, where the amount doubles for 2013 1,050,000 every 30-day period of continued violation after the first 30-day violation. 333(f)(9)(B)(ii)(II) ...... 10,000,000 For all violations adjudicated in a single proceeding ...... 2013 10,525,000 333(g)(1) ...... 250,000 For the first violation in any 3-year period ...... 2013 275,000 333(g)(1) ...... 500,000 For each subsequent violation in any 3-year period ...... 2013 550,000 333 note ...... 250 For the second violation (following a first violation with a 2009 250 warning) within a 12-month period by a retailer with an approved training program. 333 note ...... 500 For the third violation within a 24-month period by a re- 2009 500 tailer with an approved training program. 333 note ...... 2,000 For the fourth violation within a 24-month period by a re- 2009 2,000 tailer with an approved training program. 333 note ...... 5,000 For the fifth violation within a 36-month period by a retailer 2009 5,000 with an approved training program. 333 note ...... 10,000 For the sixth or subsequent violation within a 48-month pe- 2013 11,000 riod by a retailer with an approved training program. 333 note ...... 250 For the first violation by a retailer without an approved 2009 250 training program. 333 note ...... 500 For the second violation within a 12-month period by a re- 2009 500 tailer without an approved training program. 333 note ...... 1,000 For the third violation within a 24-month period by a re- 2013 1,100 tailer without an approved training program. 333 note ...... 2,000 For the fourth violation within a 24-month period by a re- 2009 2,000 tailer without an approved training program. 333 note ...... 5,000 For the fifth violation within a 36-month period by a retailer 2009 5,000 without an approved training program. 333 note ...... 10,000 For the sixth or subsequent violation within a 48-month pe- 2013 11,000 riod by a retailer without an approved training program. 335b(a) ...... 300,000 Per violation for an individual ...... 2013 325,000 335b(a) ...... 1,200,000 Per violation for ‘‘any other person’’ ...... 2013 1,275,000 360pp(b)(1) ...... 1,100 Per violation per person ...... 2008 1,100

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CIVIL MONETARY PENALTIES AUTHORITIES ADMINISTERED BY FDA AND ADJUSTED MAXIMUM PENALTY AMOUNTS— Continued

Former Adjusted maximum Date of maximum U.S.C. section penalty Assessment method last penalty penalty amount figure or amount (in dollars) adjustment (in dollars)

360pp(b)(1) ...... 355,000 For any related series of violations ...... 2013 375,000

42 U.S.C.

263b(h)(3) ...... 11,000 Per violation...... 2008 11,000 300aa–28(b)(1) ...... 120,000 Per occurrence...... 2013 130,000 1 Not adjusted.

■ 3. In § 17.5, revise paragraph (a) to comment in the Federal Register of and/or go to the Division of Dockets read as follows: October 29, 2013 (78 FR 64428) (the Management, 5630 Fishers Lane, Rm. draft RA). We are taking this action to 1061, Rockville, MD 20852. § 17.5 Complaint. make the comment period for the draft FOR FURTHER INFORMATION CONTACT: Kim (a) The Center with principal RA conform to the comment period for Young, Center for Veterinary Medicine, jurisdiction over the matter involved proposed rule entitled ‘‘Current Good Food and Drug Administration, 7519 shall begin all administrative civil Manufacturing Practice and Hazard Standish Pl., Rockville, MD 20855, 240– money penalty actions by serving on the Analysis and Risk-Based Preventive 276–2207. respondent(s) a complaint signed by the Controls for Food for Animals’’ (the SUPPLEMENTARY INFORMATION: Office of the Chief Counsel attorney for proposed preventive controls rule for the Center and by filing a copy of the food for animals). I. Background complaint with the Division of Dockets DATES: FDA is extending the comment In the Federal Register of October 29, Management (HFA–305), Food and Drug period on the draft RA. Submit either 2013, we published a notification with Administration, 5630 Fishers Lane, rm. electronic or written comments by a 120-day comment period announcing 1061, Rockville, MD 20852. For a civil March 31, 2014. the availability of, and requesting money penalty action against retailers of ADDRESSES: You may submit comments, comment on, a document entitled ‘‘Draft tobacco products, the complaint may be Qualitative Risk Assessment of Risk of signed by any Agency employee identified by Docket No. FDA–2013–N– 1043 by any of the following methods: Activity/Animal Food Combinations for designated by the Chief Counsel. Activities (Outside the Farm Definition) * * * * * Electronic Submissions Conducted in a Facility Co-Located on Dated: January 28, 2014. Submit electronic comments in the a Farm’’ (the draft RA). The purpose of Leslie Kux, following way: the draft RA is to provide a science- based risk analysis of those activity/ Assistant Commissioner for Policy. Federal eRulemaking Portal: http:// www.regulations.gov. Follow the animal food combinations that would be [FR Doc. 2014–02149 Filed 1–31–14; 8:45 am] instructions for submitting comments. considered low risk. BILLING CODE 4160–01–P We conducted this draft RA to satisfy Written Submissions requirements of the FDA Food Safety Submit written submissions in the Modernization Act (FSMA) to conduct a DEPARTMENT OF HEALTH AND following ways: science-based risk analysis and to HUMAN SERVICES Mail/Hand delivery/Courier (for paper consider the results of that analysis in Food and Drug Administration submissions): Division of Dockets rulemaking that is required by FSMA. Management (HFA–305), Food and Drug In the Federal Register of October 29, 21 CFR Part 507 Administration, 5630 Fishers Lane, Rm. 2013, we announced that we had used 1061, Rockville, MD 20852. the results of the draft RA to propose to [Docket No. FDA–2013–N–1043] Instructions: All submissions received exempt certain animal food facilities must include the Agency name and (i.e., those that are small or very small Draft Qualitative Risk Assessment of Docket No. FDA–2013–N–1043. All businesses that are engaged only in Risk of Activity/Animal Food comments received may be posted specific types of on-farm manufacturing, Combinations for Activities (Outside without change to http:// processing, packing, or holding the Farm Definition) Conducted in a www.regulations.gov, including any activities identified in the draft RA as Facility Co-Located on a Farm; personal information provided. For low-risk activity/animal food Availability; Extension of Comment additional information on submitting combinations) from the proposed Period comments, see the ‘‘Request for requirements of the Federal Food, Drug, AGENCY: Food and Drug Administration, Comments’’ heading of the and Cosmetic Act for hazard analysis HHS. SUPPLEMENTARY INFORMATION. and risk-based preventive controls (the ACTION: Notification; extension of Docket: For access to the docket to proposed preventive controls rule). comment period. read background documents or Interested persons were originally given comments received, go to http:// until February 26, 2014, to comment on SUMMARY: The Food and Drug www.regulations.gov, and insert the the proposed preventive controls rule. Administration (FDA or we) is docket number, found in brackets in the FDA has received requests for an extending the comment period for a heading of this document, into the extension of the comment period on the document we made available for public ‘‘Search’’ box and follow the prompts proposed preventive controls rule for

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food for animals to allow interested proposing performance standards for 0469. EPA’s policy is that all comments persons an opportunity to consider the certain discharges incidental to the received will be included in the docket interrelationship between this proposed normal operation of a vessel of the without change and may be made rule and the proposed rules entitled Armed Forces into the navigable waters available on-line at http:// ‘‘Foreign Supplier Verification Programs of the United States, the territorial seas, www.regulations.gov, including any for Importers of Food for Humans and and the contiguous zone. The proposed personal information provided, unless Animals’’ (78 FR 45729, July 29, 2013) standards would reduce the adverse the comment includes information and ‘‘Accreditation of Third-Party environmental impacts associated with claimed to be Confidential Business Auditors/Certification Bodies to the discharges, stimulate the Information (CBI) or other information Conduct Food Safety Audits and to development of improved pollution whose disclosure is restricted by statute. Issue Certifications’’ (78 FR 45782, July control devices, and advance the Do not submit information that you 29, 2013). We have considered the development of environmentally sound consider to be CBI or otherwise requests, and elsewhere in this issue of ships by the Armed Forces. The protected through http:// the Federal Register, we are granting an proposed standards are designed to be www.regulations.gov. The Federal extension of the comment period to consistent with the effluent limitations http://www.regulations.gov Web site is March 31, 2014, for the proposed included in the recently issued National an ‘‘anonymous access’’ system, which preventive controls rule. We are Pollutant Discharge Elimination System means EPA will not know your identity extending the comment period for the (NPDES) general permit for discharges or contact information unless you draft RA to March 31, 2014, to continue incidental to the normal operation of a provide it in the body of your comment. to make the comment period for the non-military vessel. If you send an email comment directly draft RA conform to the comment DATES: Comments must be received on to EPA without going through http:// period for the proposed preventive or before April 4, 2014. www.regulations.gov, your email controls rule. ADDRESSES: Submit your comments, address will be automatically captured and included as part of the comment II. Request for Comments identified by Docket No. EPA–HQ–OW– 2013–0469, by one of the following that is placed in the public docket and Interested persons may submit either methods: made available on the Internet. If you electronic comments regarding the Federal eRulemaking Portal: http:// submit an electronic comment, EPA proposed rule to http:// www.regulations.gov. Follow on-line recommends that you include your www.regulations.gov or written instructions for submitting comments. name and other contact information in comments to the Division of Dockets Mail: Send an original and one copy the body of your comment and with any Management (see ADDRESSES). It is only of your comments and enclosures disk or CD–ROM you submit. If EPA necessary to send one set of comments. (including references) to EPA Water cannot read your comment due to Identify comments with the docket Docket, U.S. Environmental Protection technical difficulties and cannot contact number found in brackets in the Agency, Mail Code: 2822–IT, 1200 you for clarification, EPA may not be heading of this document. Received Pennsylvania Avenue NW., Washington, able to consider your comment. comments may be seen in the Division DC 20460, Attention Docket No. EPA– Electronic files should avoid any form of Dockets Management between 9 a.m. HQ–OW–2013–0469. of encryption and should be free of any and 4 p.m., Monday through Friday, and Hand Delivery: EPA Water Docket, defects or viruses. For additional will be posted to the docket at http:// EPA Docket Center, EPA West Building, instructions on submitting comments, www.regulations.gov. Room 3334, 1301 Constitution Avenue go to the SUPPLEMENTARY INFORMATION Dated: January 28, 2014. NW., Washington, DC 20004, Docket section of this document. Leslie Kux, No. EPA–HQ–OW–2013–0469. Docket: The electronic version of the Assistant Commissioner for Policy. Deliveries to the docket are accepted public docket is available through the [FR Doc. 2014–02112 Filed 1–31–14; 8:45 am] only during their normal hours of Federal Docket Management System BILLING CODE 4160–01–P operation: 8:30 a.m. to 4:30 p.m., (FDMS) found at http:// Monday through Friday, excluding legal www.regulations.gov. You may use the holidays. For access to docket materials, FDMS to view public comments, access ENVIRONMENTAL PROTECTION call (202) 566–2426, to schedule an the index listing of the contents of the AGENCY appointment. official public docket, and access those Email: [email protected]; Attention documents in the public docket that are DEPARTMENT OF DEFENSE Docket No. EPA–HQ–OW–2013–0469. available electronically. Once at the To ensure that EPA can properly Web site, enter the appropriate Docket 40 CFR Part 1700 respond to comments, commenters ID No. in the ‘‘Search’’ box to view the should cite the paragraph(s) or docket. Certain types of information will [EPA–HQ–OW–2013–0469; FRL–9903–49– not be placed in the EPA dockets. OW] section(s) in the proposed rule to which each comment refers. Commenters Information claimed as CBI and other RIN 2040–AD39 should use a separate paragraph for each information whose disclosure is issue discussed, and must submit any restricted by statute, which is not Uniform National Discharge Standards references cited in their comments. If included in the official public docket, for Vessels of the Armed Forces— you submit an electronic comment, EPA will not be available for public viewing Phase II recommends that you include your in EPA’s electronic public docket. EPA AGENCY: Environmental Protection name and other contact information in policy is that copyrighted material will Agency and Department of Defense. the body of your comment. Electronic not be placed in EPA’s electronic public ACTION: Proposed rule. files should avoid any form of docket but will be available only in hard encryption and should be free of any copy in the official public docket. SUMMARY: The U.S. Environmental defects or viruses. Although not all docket materials may Protection Agency (EPA) and the U.S. Instructions: Direct your comments to be available electronically, you may still Department of Defense (DoD) are docket ID number EPA–HQ–OW–2013– access any of the publicly available

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docket materials through the EPA Water C. Regulatory Flexibility Act as Amended part 1700 to establish performance Docket Center, EPA West Building, by the Small Business Regulatory standards for 11 of the discharges Room 3334, 1301 Constitution Avenue Enforcement Fairness Act of 1996 incidental to the normal operation of a D. Unfunded Mandates Reform Act vessel of the Armed Forces from among (EPA West Building), NW., Washington, E. Executive Order 13132: Federalism DC 20004. The Docket Center Public F. Executive Order 13175: Consultation the 25 discharges for which EPA and Reading Room is open from 8:30 a.m. to and Coordination with Indian Tribal DoD previously determined (64 FR 4:30 p.m., Monday through Friday, Governments 25126) that it is reasonable and excluding legal holidays. The telephone G. Executive Order 13045: Protection of practicable to require a marine pollution number for the Public Reading Room is Children from Environmental Health and control device (MPCD). The 11 (202) 566–1744, and the telephone Safety Risks discharges addressed by the proposal number for the EPA Water Docket is H. Executive Order 13211: Actions are the following: Aqueous film-forming Concerning Regulations That foam; chain locker effluent; distillation (202) 566–2426. Significantly Affect Energy Supply, Distribution, or Use and reverse osmosis brine; elevator pit FOR FURTHER INFORMATION CONTACT: effluent; gas turbine water wash; non- Katherine B. Weiler, Marine Pollution I. National Technology Transfer and Advancement Act oily machinery wastewater; Control Branch (4504T), U.S. EPA, 1200 J. Executive Order 13112: Invasive Species photographic laboratory drains; Pennsylvania Avenue NW., Washington, K. Executive Order 13089: Coral Reef seawater cooling overboard discharge; DC 20460; (202) 566–1280; Protection seawater piping biofouling prevention; [email protected], or Mike L. Executive Order 12898: Federal Actions small boat engine wet exhaust; and Pletke, Chief of Naval Operations (N45), to Address Environmental Justice in welldeck discharges. 2000 Navy Pentagon (Rm 2D253), Minority Populations and Low-Income The proposed performance standards Washington, DC 20350–2000; (703) 695– Populations VI. Appendix A. would not become enforceable until 5184; [email protected]. after promulgation of a final rule, as SUPPLEMENTARY INFORMATION: This I. General Information well as promulgation of regulations by DoD under CWA § 312(n)(5)(C) to supplementary information is organized A. Legal Authority for the Proposed Rule as follows: govern the design, construction, EPA and DoD propose this rule under installation, and use of a MPCD. Table of Contents the authority of Clean Water Act (CWA) UNDS do not apply to the following § 312, 33 U.S.C. 1322. Section 325 of the discharges from vessels of the Armed I. General Information National Defense Authorization Act of Forces: Overboard discharges of A. Legal Authority for the Proposed Rule 1996 (‘‘NDAA’’), entitled ‘‘Discharges rubbish, trash, garbage, or other such B. Purpose of the Proposed Rule from Vessels of the Armed Forces’’ (Pub. materials; sewage; air emissions C. What Vessels are Potentially Affected by resulting from the operation of a vessel the Proposed Rule? L. 104–106, 110 Stat. 254), amended D. What is the Geographic Scope of the CWA § 312 to require the Administrator propulsion system, motor driven Proposed Rule? of the U.S. Environmental Protection equipment, or incinerator; or discharges E. Rulemaking Process Agency (Administrator) and the that require permitting under the F. Summary of Public Outreach and Secretary of Defense of the U.S. NPDES program, including operational Consultation with Federal Agencies, Department of Defense (Secretary) to discharges and other discharges that are States, Territories, and Tribes develop uniform national standards to not incidental to the normal operation G. Supporting Documentation control certain discharges incidental to of a vessel of the Armed Forces. H. What Should I Consider as I Prepare My the normal operation of a vessel of the Comments? C. What vessels are potentially affected Armed Forces. The term Uniform by the proposed rule? II. UNDS Performance Standards National Discharge Standards or Development The proposed rule would apply to A. Nature of the Discharge ‘‘UNDS’’ is used in this preamble to refer to the provisions in CWA vessels of the Armed Forces. For the B. Environmental Effects purposes of the rulemaking, the term C. Cost, Practicability, and Operational §§ 312(a)(12)–(14) & (n) (33 U.S.C. Impacts 1322(a)(12)–(14) & (n)). ‘‘vessel of the Armed Forces’’ is defined D. Applicable U.S. and International Law at CWA § 312(a)(14). Vessel of the E. Definitions B. Purpose of the Proposed Rule Armed Forces means any vessel owned III. UNDS Discharge Analysis and UNDS are intended to enhance the or operated by the U.S. Department of Performance Standards operational flexibility of vessels of the Defense (i.e., U.S. Navy, Military Sealift A. Aqueous Film-Forming Foam Armed Forces domestically and Command, U.S. Marine Corps, U.S. B. Chain Locker Effluent internationally, stimulate the Army, and U.S. Air Force), other than a C. Distillation and Reverse Osmosis Brine development of innovative vessel time or voyage chartered vessel, as well D. Elevator Pit Effluent as any U.S. Coast Guard vessel E. Gas Turbine Water Wash pollution control technology, and F. Non-Oily Machinery Wastewater advance the development by the U.S. designated by the Secretary of the G. Photographic Laboratory Drains Navy of environmentally sound ships. Department in which the U.S. Coast H. Seawater Cooling Overboard Discharge Section 312(n)(3)(A) of the CWA Guard is operating. The preceding list is I. Seawater Piping Biofouling Prevention requires EPA and DoD to promulgate not intended to be exhaustive, but rather J. Small Boat Engine Wet Exhaust uniform national discharge standards provides a guide for the reader regarding K. Welldeck Discharges for certain discharges incidental to the the vessels of the Armed Forces to be IV. Additional Information of the Proposed normal operation of a vessel of the regulated by the proposed rule. The Rule Armed Forces (CWA § 312(a)(12)), proposed rule would not apply to V. Related Acts of Congress and Executive commercial vessels; private vessels; Orders unless the Secretary finds that A. Executive Order 12866: Regulatory compliance with UNDS would not be in vessels owned or operated by state, Planning and Review and Executive the national security interests of the local, or tribal governments; vessels Order 13563: Improving Regulation and United States (CWA § 312(n)(1)). under the jurisdiction of the U.S. Army Regulatory Review The proposed rule would amend Title Corps of Engineers; certain vessels B. Paperwork Reduction Act 40 Code of Federal Regulations (CFR) under the jurisdiction of the U.S.

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Department of Transportation; vessels Phase I, EPA and DoD identified the adopt or enforce any state or local preserved as memorials and museums; discharges incidental to the normal statutes or regulations with respect to vessels under construction; vessels in operation of a vessel of the Armed the 14 discharges that were identified as drydock; amphibious vehicles; and, as Forces for which it is reasonable and not requiring control, except to establish noted above, time or voyage chartered practicable to require control with a no-discharge zones (CWA vessels. For answers to questions MPCD to mitigate potential adverse §§ 312(n)(6)(A) & 312(n)(7)). However, regarding the applicability of this action impacts on the marine environment section 312(n)(5)(D) of the CWA to a particular vessel, consult one of the (CWA § 312(n)(2)), as well as those authorizes a Governor of any State to contacts listed in the FOR FURTHER discharges for which it is not. Section submit a petition to DoD and EPA INFORMATION CONTACT section. 312(a)(13) of the CWA defines a MPCD requesting the re-evaluation of a prior as any equipment or management determination that a MPCD is required D. What is the geographic scope of the practice, for installation or use on a for a particular discharge (40 CFR proposed rule? vessel of the Armed Forces, that is 1700.4) or a MPCD is not required for The proposed rule would be designed to receive, retain, treat, a particular discharge (40 CFR 1700.5) if applicable to discharges from a vessel of control, or discharge a discharge there is significant new information, not the Armed Forces operating in the incidental to the normal operation of a considered previously, that could navigable waters of the United States, vessel, and determined to be the most reasonably result in a change to the territorial seas, and the contiguous zone effective equipment or management determination (CWA § 312(n)(5)(D) & 40 (CWA § 1322(n)(8)(A)). Together, the practice to reduce the environmental CFR 1700.11). preamble refers to these waters as impacts of the discharge consistent with Phase II ‘‘waters subject to UNDS.’’ Sections the considerations set forth for UNDS. 502(7), 502(8), and 502(9) of the CWA During Phase I, EPA and DoD, Section 312(n)(3) of the CWA define the term ‘‘navigable waters,’’ identified the following 25 discharges as provides for Phase II and requires EPA ‘‘territorial seas,’’ and ‘‘contiguous requiring control with a MPCD: and DoD to develop Federal zone’’ respectively. The term ‘‘navigable Aqueous Film-Forming Foam; Catapult performance standards for each of the waters’’ means waters of the United Water Brake Tank and Post-Launch 25 discharges identified in Phase I as States, including the territorial seas. The Retraction Exhaust; Chain Locker requiring control. In doing so, EPA and United States includes the States, the Effluent; Clean Ballast; Compensated DoD are required to consult with the District of Columbia, the Fuel Ballast; Controllable Pitch Department in which the U.S. Coast Commonwealth of Puerto Rico, the U.S. Propeller Hydraulic Fluid; Deck Runoff; Guard is operating, the Secretary of Virgin Islands, Guam, American Samoa, Dirty Ballast; Distillation and Reverse Commerce, interested states, the the Commonwealth of the Northern Osmosis Brine; Elevator Pit Effluent; Secretary of State, and other interested Mariana Islands, and the Trust Firemain Systems; Gas Turbine Water Federal agencies. In promulgating Phase Territories of the Pacific Islands. The Wash; Graywater; Hull Coating II performance standards, CWA term ‘‘territorial seas’’ means the belt of Leachate; Motor Gasoline Compensating § 312(n)(2)(B) directs EPA and DoD to seas that generally extends three miles Discharge; Non-Oily Machinery consider seven factors: the nature of the seaward from the line of ordinary low Wastewater; Photographic Laboratory discharge; the environmental effects of water along the portion of the coast in Drains; Seawater Cooling Overboard the discharge; the practicability of using direct contact with the open sea and the Discharge; Seawater Piping Biofouling the MPCD; the effect that installation or line marking the seaward limit of inland Prevention; Small Boat Engine Wet use of the MPCD would have on the waters. The term ‘‘contiguous zone’’ Exhaust; Sonar Dome Discharge; operation or the operational capability means the entire zone established or to Submarine Bilgewater; Surface Vessel of the vessel; applicable U.S. law; be established by the United States Bilgewater/Oil-Water Separator applicable international standards; and under article 24 of the Convention of the Discharge; Underwater Ship Husbandry; the economic costs of installation and Territorial Sea and the Contiguous and Welldeck Discharges (40 CFR use of the MPCD. Section 312(n)(3)(C) of Zone. Generally, the contiguous zone 1700.4). the CWA further provides that EPA and extends seaward for the next nine miles During Phase I, EPA and DoD, DoD may establish discharge standards (i.e., from three to 12 miles from the identified the following 14 discharges as that (1) distinguish among classes, U.S. coastline). The proposed rule not requiring control with a MPCD: types, and sizes of vessels; (2) would not be applicable seaward of the Boiler Blowdown; Catapult Wet distinguish between new and existing contiguous zone. The term ‘‘waters Accumulator Discharge; Cathodic vessels; and (3) provide for a waiver of subject to UNDS’’ is also proposed for Protection; Freshwater Layup; Mine applicability of standards as necessary addition to 40 CFR 1700.3 (definitions). Countermeasures Equipment or appropriate to a particular class, type, Lubrication; Portable Damage Control age, or size of vessel. E. Rulemaking Process Drain Pump Discharge; Portable Damage EPA and DoD have developed The UNDS rulemaking is a joint Control Drain Pump Wet Exhaust; processes to establish Phase II standards rulemaking between EPA and DoD and Refrigeration/Air Conditioning in two separate batches. The first batch is under development in three phases. Condensate; Rudder Bearing of performance standards is proposed in The first two phases reflect joint Lubrication; Steam Condensate; Stern the rule and addresses 11 of the 25 rulemaking between EPA and DoD; the Tube Seals and Underwater Bearing discharges identified as requiring third phase is a DoD-only rule. The first Lubrication; Submarine Acoustic control (64 FR 25126). The second batch phase is complete (64 FR 25126). The Countermeasures Launcher Discharge; of performance standards—the proposed rule is part of Phase II. Submarine Emergency Diesel Engine remaining 14 discharges—will be Wet Exhaust; and Submarine Outboard proposed in a separate, subsequent Phase I Equipment Grease and External notice. EPA and DoD promulgated the Phase Hydraulics. In developing the Phase II I regulations on May 10, 1999 (64 FR As of the effective date of the Phase performance standards, EPA and DoD 25126), and these existing regulations I rule (June 9, 1999), neither states nor referenced the NPDES general permit are codified at 40 CFR part 1700. During political subdivisions of states may that EPA proposed in 2011 for

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discharges incidental to the normal directives. Similar to Phase II, Phase III apply; and (3) the prohibition will not operation of a vessel as the ‘‘baseline’’ will be promulgated in two batches. have the effect of discriminating against for each comparable discharge Phase III-Batch One will address the 11 a vessel of the Armed Forces by reason incidental to the normal operation of a discharges proposed in the proposed of the ownership or operation by the vessel of the Armed Forces (76 FR rule and Phase III-Batch Two will Federal government, or the military 76716). The NPDES proposed Small address the remaining 14 discharges. function, of the vessel (40 CFR Vessel General Permit and the final Following the effective date of 1700.9(b)(2)). Vessel General Permit provide for CWA regulations under Phase III, it will be authorization of discharges incidental to unlawful for a vessel of the Armed Alternatively, a state may request that the normal operation of non-military Forces to operate within waters subject EPA prohibit, by regulation, the and non-recreational vessels extending to UNDS if the vessel is not equipped discharge of one or more discharges to the outer reach of the 3-mile with the required MPCD meeting the incidental to the normal operation of a territorial sea as defined in CWA final Phase II standards (CWA § 312 vessel of the Armed Forces, whether § 502(8). The proposed and final NPDES (n)(7)). It also will be unlawful for a treated or not, into specified waters vessel general permits include effluent vessel of the Armed Forces to discharge within a state (40 CFR 1700.10). In this limits that are based on both the a regulated UNDS discharge into waters case, EPA would make a determination technology available to treat the where a prohibition on the discharge that the protection and enhancement of pollutants (i.e., technology-based has been established (i.e., to discharge the quality of the specified waters effluent limitations), and limits that into an UNDS no-discharge zone) (CWA requires a prohibition of the discharge. would be protective of the designated § 312(n)(8)). Any person in violation of As with the application of a state uses of the receiving water (water this requirement shall be liable to a civil prohibition described above, the quality-based effluent limits), including penalty of not more than $5,000 for each Administrator would need to determine both non-numeric (e.g., management violation (CWA § 312(j)). The Secretary that (1) the protection and enhancement of the Department in which the U.S. practices) and numeric limitations. of the quality of the specified waters Coast Guard is operating is empowered Additional information on NPDES within the state require a prohibition of permitting can be found on-line at to enforce these provisions and may the discharge into the waters; (2) http://cfpub.epa.gov/npdes/. In the utilize law enforcement officers, EPA proposed rule preamble, EPA and DoD personnel and facilities, other Federal adequate facilities for the safe and refer to these NPDES permits agencies, or the states to carry out these sanitary removal of the discharge collectively as the ‘‘VGP.’’ provisions. States may also enforce incidental to the normal operation of a Using the VGP as a baseline for these provisions (CWA §§ 312(k) & vessel are reasonably available for the developing the MPCD performance (n)(9)). waters to which the prohibition would standard(s) for discharges incidental to In addition, as of the effective date of apply; and (3) the prohibition will not the normal operation of a vessel of the Phase III regulations, neither states nor have the effect of discriminating against Armed Forces allowed EPA and DoD to political subdivisions of states may a vessel of the Armed Forces by reason maximize the use of EPA’s scientific adopt or enforce any state or local of the ownership or operation by the and technical work developed to statute or regulation with respect to Federal government, or the military support the VGP and to adapt, as discharges identified as requiring function, of the vessel (40 CFR appropriate, the VGP technology-based control, except to establish no-discharge 1700.9(b)(2)). EPA may not, however, effluent limitations and water quality- zones (CWA § 312(n)(7)). CWA disapprove a state application for this based effluent limitations for § 312(n)(7) provides for the latter type of prohibition for the sole application to discharges incidental to establishment of no-discharge zones reason that there are not adequate either (A) by state prohibition after the normal operation of a vessel of the facilities for the safe and sanitary application and a determination by Armed Forces. EPA and DoD also removal of such discharges (CWA considered relevant water quality EPA, or (B) directly by EPA prohibition. §§ 312(n)(7)(B)(ii) and 40 CFR standards, including numeric and The Phase I UNDS regulations 1700.10(b)). narrative criteria, designated uses, and established the criteria and procedures anti-degradation policies in order to for establishing no-discharge zones (40 The statute also requires EPA and evaluate the potential environmental CFR 1700.9–1700.10). DoD to review the determinations and effects of the discharges consistent with If a state determines that the standards every five years, and if CWA § 312(n)(2)(B)(ii). protection and enhancement of the necessary, to revise them based on quality of some or all of its waters Phase III significant new information. require greater environmental Specifically, CWA §§ 312(n)(5)(A) and Phase III of UNDS requires DoD, in protection, the state may prohibit one or (B) contain provisions for reviewing and consultation with EPA and the Secretary more discharges incidental to the modifying both of the following of the Department in which the U.S. normal operation of a vessel of the determinations: (1) Whether control Coast Guard is operating, within one Armed Forces, whether treated or not, should be required for a particular year of finalization of the Phase II into those waters (40 CFR 1700.9). A discharge, and (2) the substantive standards, to promulgate regulations state prohibition does not apply until governing the design, construction, after the Administrator determines that standard of performance for a discharge installation, and use of MPCDs (1) the protection and enhancement of for which control is required. A necessary to meet the discharge the quality of the specified waters Governor also may petition the performance standards. DoD will within the state require a prohibition of Administrator and the Secretary to implement the Phase III regulations the discharge into the waters; (2) review UNDS determinations and under the authority of the Secretary as adequate facilities for the safe and standards if there is significant new a DoD publication. The Phase III sanitary removal of the discharge information, not considered previously, regulations would be publicly released incidental to the normal operation of a that could reasonably result in a change and made available on the following vessel are reasonably available for the to the determination or standard (CWA Web site http://www.dtic.mil/whs/ waters to which the prohibition would § 312(n)(5)(D) & 40 CFR 1700.11).

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F. Summary of Public Outreach and docket number EPA–HQ–OW–2013– A. Nature of the Discharge Consultation With Federal Agencies, 0469. These electronic submissions will During Phase I, EPA and DoD States, Territories, and Tribes be accepted in Microsoft Word or Adobe gathered information on the discharges During the development of the PDF. If your comment cannot be read incidental to the normal operation of a proposed Phase II rule, EPA and DoD due to technical difficulties and you vessel of the Armed Forces and consulted with other Federal agencies, cannot be contacted for clarification, developed ‘‘nature of discharge’’ states, and tribes regarding the EPA and DoD may not be able to reports. The ‘‘nature of discharge’’ enhancement of the operational consider your comment. Avoid the use reports discuss how the discharge is flexibility of vessels of the Armed of special characters and any form of generated, volumes and frequencies of Forces domestically and internationally; encryption. the generated discharge, where the development of innovative vessel Tips for Preparing Comments. Please discharge occurs, and the constituents pollution control technology; and follow these guidelines as you prepare present in the discharge. In addition, advancement of the development by the your comments so that EPA and DoD EPA and DoD reviewed relevant U.S. Navy of environmentally sound can better address them in a timely discharge information in the supporting ships. In addition, EPA and DoD manner. documentation of the VGP. The nature reviewed comments on the VGP from 1. Identify the proposed rule by of the discharge reports can be found in Federal agencies, states, territories, and docket number and other identifying Appendix A of the Technical environmental organizations. information (subject heading, Federal Development Document—EPA 821–R– Register date, and page number). 99–001, G. Supporting Documentation 2. Explain why you agree or disagree The proposed rule is supported by with any proposed performance B. Environmental Effects ‘‘Technical Development Document standards; suggest alternatives and Discharges incidental to the normal (TDD) Phase I Uniform National substitute language for your requested operation of a vessel of the Armed Discharge Standards (UNDS) for Vessels changes. Forces have the potential to negatively of the Armed Forces,’’ the draft and 3. Describe any assumptions and impact the aquatic environment. The final UNDS Phase I rules, various VGP provide any technical information and/ discharges contain a wide variety of documents, including, but not limited to or data that you used. constituents that have the potential to the ‘‘Proposed 2013 Vessel General 4. Provide specific examples to negatively impact aquatic species and Permit for Discharges Incidental to the illustrate your concerns and suggest habitats. These discharges can contain Normal Operation of Vessels (VGP),’’ alternatives. aquatic nuisance species (ANS), the ‘‘Final 2013 Vessel General Permit 5. Explain your views as clearly as nutrients, thermal pollution, bacteria for Discharges Incidental to the Normal possible. and/or pathogens (e.g., E. coli and fecal Operation of Vessels (VGP),’’ the Make sure to submit your comments coliform), oil and grease, metals, most ‘‘Vessel General Permit (VGP) Fact by the comment period deadline. EPA conventional pollutants (e.g., organic Sheet,’’ the ‘‘Proposed Small Vessel and DoD are not obligated to accept or matter, bicarbonate, and total suspended General Permit for Discharges Incidental consider late comments. solids), and other toxic and non- to the Normal Operation of Vessels Less II. UNDS Performance Standards conventional pollutants with toxic Than 79 Feet (sVGP),’’ the ‘‘Small Development effects. While it is unlikely that these Vessel General Permit (sVGP) Fact discharges would cause an acute or Sheet,’’ the ‘‘Economics and Benefits During the development of the chronic exceedance of water quality Analysis of the Proposed and Final 2013 proposed discharge performance criteria across a large water body, these Vessel General Permit (VGP),’’ standards, EPA and DoD analyzed the discharges have the potential to cause ‘‘Economics and Benefits Analysis of information from Phase I of UNDS and adverse environmental impacts on a the Proposed 2013 Small Vessel General considered the VGP effluent limitations more localized scale due to the ‘‘end-of- Permit (sVGP),’’ ‘‘Report to Congress: as well as the seven statutory factors pipe’’ nature of the discharges. For each Study of Discharges Incidental to listed in CWA § 312(n)(2)(B). EPA and of the 11 discharges below, EPA and Normal Operation of Commercial DoD determined that the VGP effluent DoD discuss the constituents of concern Fishing Vessels and Other Non- limitations, which include technology- released into the environment and Recreational Vessels Less than 79 Feet,’’ based and water quality-based effluent potential water quality impacts. The and ‘‘Environmentally Acceptable limitations, provide a sound basis for proposed performance standards would Lubricants.’’ These documents are developing performance standards for reduce the discharge of constituents of available from the EPA Water Docket, the 11 discharges covered in the concern and mitigate the environmental Docket No. EPA–HQ–OW–2013–0469 proposed rule. EPA and DoD used the risks to the receiving waters. (Email: [email protected]; Phone VGP effluent limitations language and C. Cost, Practicability, and Operational Number: (202) 566–2426; Mail: Water adapted the language as necessary to Impacts Docket, Mail Code: 2822–IT, 1200 incorporate the considerations of the Pennsylvania Avenue, NW., UNDS Phase I information and the The population of vessels of the Washington, DC 20460; or Online: seven statutory factors. The subsections Armed Forces affected by the proposed http://www.regulations.gov). The VGP below outline EPA and DoD’s approach rule encompasses more than 6,000 background documents also are to considering the seven statutory vessels distributed among the U.S. available online: http://www.epa.gov/ factors in the development of the Navy, Military Sealift Command (MSC), npdes/vessels. proposed discharge standards. U.S. Coast Guard, U.S. Army, U.S. EPA and DoD invite comment on the Marine Corps, and U.S. Air Force. These H. What should I consider as I prepare two agencies’ approach to use the VGP vessels range in design and size from my comments? as a baseline from which to develop the small boats with lengths of less than 20 The public may submit comments in performance standards for the feet for coastal operations to aircraft written or electronic form. Electronic discharges identified in Phase I that carriers with lengths of over 1,000 feet comments must be identified by the require control. for global operations. Approximately

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82% of the vessels of the Armed Forces Transportation Act; Title X of the Coast A. Aqueous Film-Forming Foam are less than 79 feet in length. Larger Guard Authorization Act of 2010; 1. Nature of Discharge vessels (i.e., with length equal to or National Marine Sanctuaries Act; greater than 79 feet) comprise 18% of Antiquities Act of 1906; Resource Aqueous film-forming foam (AFFF) is the vessels of the Armed Forces. EPA Conservation and Recovery Act; Toxic the primary firefighting agent used to and DoD considered vessel class, type, Substances Control Act; and the VGP. extinguish flammable liquid fires on and size when developing the proposed EPA and DoD invite comment on the surface ships of the Armed Forces. For the purposes of UNDS, AFFF is the discharge standards as not all vessels application of the laws and firefighting foam and seawater mixture have the same discharges. For more international standards considered in information on the various vessel discharged during training, testing, or the development of the proposed classes, characteristics, and mission, see maintenance operations (i.e., non- performance standards. Appendix A. emergency, but routine situations) (40 EPA and DoD assessed the relative E. Definitions CFR 1700.4(a)). UNDS do not apply to costs, practicability, and operational the operational AFFF discharged to impacts of the proposed rule by EPA and DoD propose adding UNDS prevent loss of life, personal injury, comparing current operating conditions definitions to 40 CFR part 1700. vessel endangerment, or severe damage and practices of vessels of the Armed Specifically, the proposal would define to the vessel (e.g., firefighting) (40 CFR Forces with the anticipated operating the terms: Bioaccumulative; 1700.39(a)). conditions and practices that would be biodegradable; environmentally AFFF or fluoroprotein foam required to meet the proposed discharge acceptable lubricants; federally- concentrate is a foam concentrate mixed performance standards. protected waters; hazardous material; with seawater to form a diluted seawater EPA and DoD determined that the non-toxic; person in charge; toxic foam solution (3–6% AFFF). Fluoroprotein foam is a protein-based vessels of the Armed Forces are materials; and waters subject to UNDS. material to which fluorinated generally implementing the proposed EPA and DoD are defining these terms operating conditions and practices for surfactants have been added to improve to support the proposal of the all 11 discharges; therefore, it is fluidity and surface tension properties, performance standards described in the anticipated that any incremental while reducing the tendency of the increase in performance costs, following section. These definitions protein base to absorb liquids. The practicability, and operational impacts intend to clarify, simplify, and/or diluted seawater solution is sprayed as will be marginal for these discharges. improve understanding of the proposed foam on the fire and is applied with performance standards. EPA and DoD both fire hoses and fixed sprinkler D. Applicable U.S. and International invite comment on these definitions as devices. However, only the diluted Law applied to the specific proposed seawater foam solution is discharged; EPA and DoD reviewed U.S. laws and performance standards. the actual concentrate is never international standards that would be discharged. As such, AFFF contains relevant to discharges incidental to the III. UNDS Discharge Analysis and constituents found both in the foam normal operation of a vessel of the Performance Standards concentrate (e.g., perfluorooctane Armed Forces. A number of U.S. This section provides additional sulfonate (PFOS) or perfluorooctanoic environmental laws include specific detail regarding the nature of the 11 acid (PFOA)) and in the firemain (e.g., provisions for Federal facilities and copper and microorganisms). Some discharges and the potential for adverse properties that may result in different alternatives to AFFF exist that have environmental effects associated with environmental requirements for Federal lower concentrations of perfluorinated and non-federal entities. Similarly, the discharges. The section also surfactants, or contain non-fluorinated many international treaties do not apply describes the proposed MPCD surfactants, that are less persistent than to vessels of the Armed Forces because determined to be reasonable and AFFF or fluoroprotein foam. they are entitled to sovereign immunity practicable to mitigate the adverse AFFF discharges occur during under international law or apply impacts to the marine environment. training, planned maintenance, system different approaches to adoption of The proposed performance standards testing and inspections, or flight deck appropriate environmental control described in each section below would certifications. During or after these measures consistent with the objects apply to discharges incidental to the activities occur, the seawater foam and purposes of such treaties. EPA and normal operation of a vessel of the solution is discharged either directly DoD incorporated any relevant Armed Forces, operating within waters overboard from hoses, washed information in the development of the subject to UNDS, except as otherwise overboard from accumulations on the proposed discharge standards after expressly excluded in the ‘‘exceptions’’ flight deck, or drained to the bilge. reviewing the requirements of the section of the proposed rule (40 CFR These training, maintenance, and testing following laws and treaties: 1700.39). In addition, if two or more cases generally occur annually, at 18 International Convention for the month intervals, and/or at 3 year regulated discharge streams are Prevention of Pollution from Ships (also intervals depending on the vessel combined into one, the resulting referred to as MARPOL); International requirements. Convention on the Control of Harmful discharge stream must meet the Approximately 10% of the vessels of Anti-Fouling Systems on Ships; requirements applicable to all discharge the Armed Forces (i.e., aircraft carriers, International Convention for the Control streams that are combined prior to surface combatants, amphibious support and Management of Ships’ Ballast Water discharge (40 CFR 1700.40). ships, and most classes of patrol ships and Sediments, 2004; Act to Prevent Furthermore, recordkeeping (40 CFR and auxiliary ships) discharge AFFF. Pollution from Ships; CWA section 311, 1700.41) and non-compliance reporting Vessels less than 79 feet in length are as amended by the Oil Pollution Control (40 CFR 1700.42) apply generally to not expected to have seawater foam Act of 1990; Federal Insecticide, each proposed performance standard firefighting systems. For more Fungicide, and Rodenticide Act unless expressly provided in a information regarding AFFF, please see (FIFRA); Hazardous Materials particular performance standard. the AFFF NOD in Appendix A of the

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Technical Development Document— environmental and human health statutory factors listed in CWA EPA 821–R–99–001. impacts. § 312(n)(2)(B). EPA and DoD propose to require that all anchor chains from 2. Environmental Effects B. Chain Locker Effluent surface vessels (submarines are not AFFF could negatively impact 1. Nature of the Discharge subject to this requirement) must be receiving waters due to the constituents Chain locker effluent is the carefully and thoroughly washed down in the foam concentrate and the copper accumulated precipitation and seawater (i.e., more than a cursory rinse) as they and microorganisms found in the that is emptied from the compartment are being hauled out of the water to firemain system. used to store the vessel’s anchor chain remove sediment and organisms. EPA The constituents of AFFF concentrate (40 CFR 1700.4(c)). Anchor chains used and DoD also propose to require that all include water, 2-(2-butoxyethoxy)- by surface vessels are stored in the chain lockers must be cleaned ethanol, urea, alkyl sulfate salts, chain locker when not in use. The small periodically to eliminate accumulated amphoteric fluoroalkylamide derivative, amount of water that is washed into the sediments and any potential perfluoroalkyl sulfonate salts, chain locker eventually drains through accompanying pollutants. The dates of triethanolamine, and methyl-1H- the bottom grating and into the sump all chain locker inspections must be benzotriazole. In addition, because the where it can come into contact with recorded in the ship’s log or other vessel seawater mixed with the AFFF paint chips, rust, grease, and sacrificial recordkeeping documentation. In addition, EPA and DoD propose to concentrate comes from the vessel’s zinc anodes. This collected water also require that for vessels that sail seaward firemain system, the discharge may also has the potential to contain ANS. of waters subject to UNDS at least once include bis(2-ethylhexyl) phthalate, Chain locker effluent is discharged per month, chain lockers shall not be nitrogen (measured as total Kjeldahl when the chain locker sump is emptied rinsed or pumped out within waters nitrogen), copper, nickel, iron, and directly overboard. The generation rate subject to UNDS to eliminate any microorganisms which can be found in of this discharge depends on many potential impact to nearshore waters. If the actual piping of the firemain system. factors, including the amount of technically feasible, the chain locker The concentration of many of the precipitation and seawater that enters shall be periodically cleaned, rinsed, constituents in the AFFF, particularly the chain locker, the size of the vessel, and/or the accumulated water and bis(2-ethylhexyl) phthalate, copper, the number of chain lockers per vessel, sediment (i.e., chain locker effluent) nickel, and iron could negatively impact and the frequency of anchor use. shall be pumped out prior to entering the receiving waters and could Approximately 500 vessels of the waters subject to UNDS (preferably in potentially contribute to an exceedance Armed Forces have at least one chain mid-ocean). For vessels that do not sail of relevant recommended water quality locker, and thus generate chain locker seaward of waters subject to UNDS at criteria. The PFOS found in the AFFF is effluent. However, inspections of the least once per month, if a discharge of a persistent, bioaccumulative, toxic, and chain lockers during Phase I revealed chain locker effluent occurs within carcinogenic chemical compound that is that the chain lockers are often dry and waters subject to UNDS it shall occur at suspected of causing adverse human only a small amount of water actually the greatest distance practicable from health effects. The discharge of the accumulates in the chain locker. shore and, if technically feasible, shall microorganisms from the firemain Submarine chain lockers are always not be discharged in federally-protected system also could result in the submerged, open to the sea, and do not waters. introduction of ANS and negatively collect effluent. Vessels less than 79 feet impact biodiversity, water quality, and in length are not expected to have chain C. Distillation and Reverse Osmosis the designated uses of water bodies. In lockers. Brine addition, AFFF could potentially cause For more information regarding chain 1. Nature of the Discharge foam to float on the surface of the water, locker effluent, please see the chain altering visibility and violating aesthetic locker effluent NOD in Appendix A of Distillation and reverse osmosis brine water quality criteria. the Technical Development Document— is the concentrated seawater (brine) Restricting the discharge of AFFF and EPA 821–R–99–001. produced as a by-product of the the associated constituents of concern processes used to generate freshwater would protect and enhance the quality 2. Environmental Effects from seawater (40 CFR 1700.4(i)). of waters subject to UNDS. Chain locker effluent could negatively Distillation and reverse osmosis brine derives from distilling and reverse 3. Selection of Marine Pollution Control impact receiving waters due to the osmosis equipment and machinery that Device Performance Standard possible presence of paint chips, rust, grease, sacrificial zinc anodes, and generate freshwater from seawater for a In selecting the proposed standard, microorganisms. The discharge of the variety of shipboard applications, EPA and DoD considered the microorganisms could result in the including potable water for drinking, information from Phase I of UNDS, the introduction of ANS and negatively aircraft and vehicle washdowns, boiler VGP effluent limitations, and the seven impact biodiversity, water quality, and feedwater on steam-powered vessels, statutory factors listed in CWA the designated uses of water bodies. and auxiliary boiler feedwater on most § 312(n)(2)(B). EPA and DoD propose to Restricting the discharge of chain locker vessels. require that AFFF (i.e., AFFF used effluent and the associated constituents The brine from distillation and during training, testing, or maintenance of concern would protect and enhance reverse osmosis differs based on operations) shall not be discharged (i.e., the quality of waters subject to UNDS. whether the brine originates from AFFF should be collected and stored for distilling equipment or reverse osmosis on shore disposal or discharged when 3. Selection of Marine Pollution Control equipment. Distillation equipment boils the vessel is located seaward of waters Device Performance Standard seawater and the resulting steam is subject to UNDS) because the In selecting the proposed standard, condensed into high-purity distilled constituents have the potential to EPA and DoD considered the water; the remaining seawater contribute to an exceedance of water information from Phase I of UNDS, the concentrate (i.e., brine) that is not quality criteria and to cause adverse VGP effluent limitations, and the seven evaporated is discharged overboard.

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Reverse osmosis equipment separates machinery), toxic or hazardous vessels do not produce elevator pit freshwater from seawater by using semi- materials, or wastes. effluent because their vessels do not permeable membranes as a physical have elevators. D. Elevator Pit Effluent barrier to allow a portion of the seawater For more information regarding to pass through the membrane as 1. Nature of the Discharge elevator pit effluent, please see the freshwater; the retained substances Elevator pit effluent is the liquid that elevator pit effluent NOD in Appendix become concentrated into brine that accumulates in, and is discharged from, A of the Technical Development includes a large percentage of the sumps of elevator wells on vessels Document—EPA 821–R–99–001. suspended and dissolved constituents (40 CFR 1700.4(j)). Most large surface 2. Environmental Effects and is subsequently discharged vessels have at least one type of Elevator pit effluent could negatively overboard. This seawater concentrate, or elevator. Shipboard elevators operate brine, primarily consists of seawater, impact receiving waters due to the using cables, rails, or hydraulic pistons. but can also contain materials from possible presence of lubricants, cleaning Elevator shafts typically have a sump or these processes, such as nutrients and solvents, soot, paint chips, and reservoir in the pit that collects liquids anti-scaling treatment chemicals as well constituents of concern (total nitrogen, that may enter the elevator and shaft as some metals, including copper and bis(2-ethylhexyl) phthalate, silver, area. If the elevator pit is located above zinc. chromium, copper, iron, nickel, lead, the waterline, the sump is typically Approximately 10% of U.S. Navy, zinc, and phenols). These constituents fitted with a drain that directs the waste MSC, U.S. Coast Guard, and U.S. Army may be present in concentrations that overboard. This drain is normally higher surface vessels and submarines are could potentially contribute to an than the sump floor to prevent clogging equipped with water purification exceedance of relevant recommended from solids that otherwise settle out and equipment and therefore generate this water quality criteria. Restricting the remain in the sump. If the elevator pit discharge. The majority of the 10% are discharge of elevator pit effluent and the is located below the waterline, the pit is operating distillation equipment. associated constituents of concern educted dry using the pressure of the Vessels less than 79 feet in length are would protect and enhance the quality firemain water supply to remove fluids not expected to have water purification of waters subject to UNDS. equipment. from the sump. For more information regarding Elevator pit effluent may contain 3. Selection of Marine Pollution Control distillation and reverse osmosis brine, grease, lubricants, solvents, soot, dirt, Device Performance Standard paint chips, or nutrients. Furthermore, please see the distillation and reverse In selecting the proposed standard, when water enters the elevator pit, it osmosis brine NOD in Appendix A of EPA and DoD considered the sometimes contains materials that were the Technical Development Document— information from Phase I of UNDS, the on the deck, including aviation fuel, EPA 821–R–99–001. VGP effluent limitations, and the seven hydraulic fluid, lubricating oil, residual statutory factors listed in CWA 2. Environmental Effects water, and AFFF. Residue in the § 312(n)(2)(B). EPA and DoD propose to elevator car from the transport of Distillation and reverse osmosis brine prohibit the direct discharge of elevator materials may also be washed into the could negatively impact receiving pit effluent overboard within waters elevator pit. The cleaning solvent used waters due to the presence of dissolved subject to UNDS to minimize the during maintenance cleaning operations and suspended solids, anti-scaling potential impact to nearshore waters. as well as liquid wastes generated by the chemicals, and metals. The constituents Elevator pit effluent could be discharged cleaning process then drain into the found in the brine are generally present within waters subject to UNDS but only elevator pit sump. This mixture of in the influent seawater used in the if it is commingled with another materials and liquid collects in the distillation or reverse osmosis processes discharge for the purposes of treatment sump at the bottom of the elevator pit. and become concentrated in the brine prior to discharge; under no If the firemain system is used to educt before being discharged. Specifically, circumstances may oils, including oily fluids from the pit, the effluent may also the concentration of copper and zinc mixtures, be discharged from that contain nitrogen, bis(2-ethylhexyl) found in the brine discharges could combined discharge in quantities that phthalate, copper, iron, and nickel. potentially contribute to an exceedance cause a film or sheen upon or The generation rate of this discharge of relevant recommended water quality discoloration of the surface of the water depends on the periodicity of cleaning criteria. Restricting the discharge of or adjoining shorelines, or cause a and lubrication of the mechanical distillation and reverse osmosis and the sludge or emulsion to be deposited components (e.g., guide rollers and associated constituents of concern beneath the surface of the water or upon bearings) on the elevator car and in the would protect and enhance the quality adjoining shorelines, or contain an oil elevator shaft and pit, the frequency and of waters subject to UNDS. content above 15 ppm as measured by volume of water from the deck that EPA Method 1664 or other appropriate 3. Selection of Marine Pollution Control enters the elevator pit, and the method for determination of oil content Device Performance Standard frequency of elevator use (frequent use as accepted by the International In selecting the proposed standard, allows for more deck runoff entry). Maritime Organization (IMO) (e.g., EPA and DoD considered the These factors vary greatly among vessel International Organization for information from Phase I of UNDS, the classes and between elevators aboard Standardization (ISO) Method 9377) or VGP effluent limitations, and the seven any given vessel. Vessel inspections U.S. Coast Guard, or are otherwise statutory factors listed in CWA conducted during UNDS Phase I, harmful to the public health or welfare § 312(n)(2)(B). EPA and DoD propose to however, revealed that elevator pits of the United States. prohibit the discharge of the distillation were often dry. and reverse osmosis brine overboard Approximately 5% of surface vessels, E. Gas Turbine Water Wash within waters subject to UNDS if it all of them belonging to the U.S. Navy comes in contact with machinery or and MSC, generate elevator pit effluent. 1. Nature of the Discharge industrial equipment (other than The U.S. Coast Guard, U.S. Army, U.S Gas turbine water wash is the water distillation or reverse osmosis Air Force, and U.S. Marine Corps released from washing gas turbine

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components (40 CFR 1700.4(l)). Gas statutory factors listed in CWA Approximately 4% of the vessels of turbines are used for propulsion and § 312(n)(2)(B). EPA and DoD propose to the Armed Forces have dedicated non- electricity generation and are cleaned prohibit the direct discharge of gas oily machinery wastewater collection occasionally to remove byproducts that turbine water wash overboard within systems. Most of the vessels that accumulate and affect their operation. waters subject to UNDS. Gas turbine generate this discharge are U.S. Navy Expected constituents of gas turbine water wash should be collected vessels greater than or equal to 79 feet water wash include synthetic separately and disposed of at an onshore in length. Vessels less than 79 feet in lubricating oil, grease, solvent-based facility. If gas turbine water wash is length are not expected to generate this cleaning products that contain commingled with any other discharge discharge. naphthalene, hydrocarbon combustion for the purposes of treatment prior to For more information regarding non- by-products, salts from the marine discharge, then under no circumstances oily machinery wastewater, please see environment, and metals leached from may oils, including oily mixtures, be the non-oily machinery wastewater metallic turbine surfaces. Gas turbine discharged from that combined NOD in Appendix A of the Technical water wash effluent and any drainage of discharge in quantities that cause a film residual material from leaks and spills Development Document—EPA 821–R– or sheen upon or discoloration of the 99–001. usually are either collected and held in surface of the water or adjoining a dedicated tank system for shore shorelines, or cause a sludge or 2. Environmental Effects disposal or discharged to the emulsion to be deposited beneath the environment as a commingled surface of the water or upon adjoining Non-oily machinery wastewater component of another UNDS discharge. shorelines, or contain an oil content discharges could negatively impact The discharge rates and above 15 ppm as measured by EPA receiving waters due to the possible concentrations of gas turbine water Method 1664 or other appropriate presence of metals and other toxic wash vary according to the frequency of method for determination of oil content pollutants. The constituents of concern washdowns. Some U.S. Navy vessels as accepted by the International (bis(2-ethylhexyl) phthalate, copper, conduct gas turbine washdowns as Maritime Organization (IMO) (e.g., ISO nickel, and silver) are sometimes frequently as every 48 hours with over Method 9377) or U.S. Coast Guard, or present in concentrations that could 100 gallons of water wash generated per are otherwise harmful to the public potentially contribute to an exceedance washdown. health or welfare of the United States. of relevant recommended water quality Fewer than 5% of the surface vessels criteria. Restricting the discharge of (i.e., surface combatants and auxiliary F. Non-Oily Machinery Wastewater non-oily machinery wastewater and the support ships) of the Armed Forces have 1. Nature of the Discharge associated constituents of concern shipboard gas turbine systems and would protect and enhance the quality therefore generate gas turbine water Non-oily machinery wastewater of waters subject to UNDS. wash. Vessels less than 79 feet in length discharge is the combined wastewater are not expected to have gas turbines. from the operation of distilling plants, 3. Selection of Marine Pollution Control For more information regarding gas water chillers, valve packings, water Device Performance Standard turbine water wash, please see the gas piping, low- and high-pressure air In selecting the proposed standard, turbine water wash NOD in Appendix A compressors, and propulsion engine EPA and DoD considered the of the Technical Development jacket coolers (40 CFR 1700.4(p)). Non- information from Phase I of UNDS, the Document—EPA 821–R–99–001. oily machinery wastewater systems are VGP effluent limitations, and the seven designed to separate the wastewater 2. Environmental Effects statutory factors listed in CWA generated from machinery that does not § 312(n)(2)(B). EPA and DoD propose to Gas turbine water wash could contain oil from the wastewater require that direct discharges of non- negatively impact receiving waters due generated from machinery that has oil oily machinery wastewater or to the possible presence of oil, grease, content. Vessels have numerous sources discharges of non-oily machinery and solvent-based cleaning products of non-oily machinery wastewater, wastewater that are commingled with that contain naphthalene. The estimated including distilling plants start-up any other discharge for the purposes of concentration of naphthalene could discharge, chilled water condensate treatment prior to discharge be free from potentially contribute to an exceedance drains, fresh and saltwater pump drains, any additives that are toxic or of relevant recommended water quality potable water tank overflows, and leaks bioaccumulative in nature. In addition, criteria, and the concentration of oil also from propulsion shaft seals. could potentially contribute to an under no circumstances may oils, Non-oily machinery wastewater exceedance of relevant recommended including oily mixtures contained in discharge can contain a suite of water quality criteria because the source non-oily machinery wastewater be conventional pollutants, metals, and of this discharge (gas turbine cleaning) discharged in quantities that cause a organics (e.g., copper, nickel, silver, is designed to dissolve fuel, lubricant, film or sheen upon or discoloration of zinc, mercury, and a variety of and other hydrocarbon deposits. the surface of the water or adjoining nutrients). Normally, the discharge is Restricting the discharge of gas turbine shorelines, or cause a sludge or drained directly overboard continuously water wash and the associated emulsion to be deposited beneath the as it is produced or is pumped constituents of concern would protect surface of the water or upon adjoining overboard intermittently from non-oily and enhance the quality of waters shorelines, or contain an oil content machinery wastewater tanks. In some subject to UNDS. above 15 ppm as measured by EPA instances, non-oily machinery Method 1664 or other appropriate 3. Selection of Marine Pollution Control wastewater may be drained to the bilge. method for determination of oil content Device Performance Standard Non-oily machinery wastewater as accepted by the International In selecting the proposed standard, discharge rates vary by vessel size and Maritime Organization (IMO) (e.g., ISO EPA and DoD considered the operation type, ranging from less than Method 9377) or U.S. Coast Guard, or information from Phase I of UNDS, the 100 gallons per hour (gph) to over 4,000 otherwise are harmful to the public VGP effluent limitations, and the seven gph. health or welfare of the United States.

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G. Photographic Laboratory Drains 3. Selection of Marine Pollution Control All vessels of the Armed Forces (with Device Performance Standard the exception of some non-self 1. Nature of the Discharge propelled service craft such as barges) In selecting the proposed standard, The photographic laboratory (‘‘photo use seawater for cooling. The majority of EPA and DoD considered the lab’’) drains contain laboratory the volume of seawater cooling wastewater resulting from the information from Phase I of UNDS and overboard discharge, however, is processing of photographic film (40 CFR the seven statutory factors listed in generated by approximately 10% of the 1700.4(q)). The wastewater resulting CWA § 312(n)(2)(B). EPA and DoD vessel population (i.e., vessels greater from a photographic laboratory aboard a propose to prohibit the discharge of than or equal to 79 feet in length). vessel is the same as the wastewater that photographic laboratory drain For more information regarding would result from a shore-based discharges within waters subject to seawater cooling, please see the photographic developing facility. The UNDS. seawater cooling overboard discharge wastewater results from the processing H. Seawater Cooling Overboard NOD in Appendix A of the Technical of color, black-and white, and X-ray Discharge Development Document—EPA 821–R– film. The photographic wastewater 99–001. processing system consists of three 1. Nature of the Discharge 2. Environmental Effects elements: a film processor, a washwater Seawater cooling overboard discharge recycle system, and a fixer recycle and is the discharge of seawater from a Seawater cooling overboard silver recovery subsystem. These three dedicated piping system that provides discharges could negatively impact elements contribute to wastewater that non-contact cooling water for other receiving waters due to the possible includes developer solutions, fixers, vessel systems (40 CFR 1700.4(r)). The presence of metals, biota, and increased temperature. The constituents of hardener solutions, detergents, rinse- seawater cooling system continuously concern include nitrogen, copper, iron, waters, and wastewater from silver provides cooling water to heat aluminum, zinc, nickel, tin, silver, recovery units. exchangers, removing heat from main titanium, arsenic, manganese, Major constituents in the discharge propulsion machinery, electrical chromium, lead, and possibly oil and can include acetic acid, aluminum generating plants, and other auxiliary grease from valves and pumps. The sulfate, ammonia, boric acid, ethylene equipment. The cooling water is nitrogen, copper, nickel, and silver glycol, sulfuric acid, sodium acetate, typically circulated through an enclosed could potentially contribute to an sodium chloride, ammonium bromide, system that does not come in direct exceedance of relevant recommended formaldehyde, and silver. These contact with machinery, but still may water quality criteria. The potential also constituents also vary based on whether contain sediment from water intake, exists for the transport of ANS because the photos use color, black-and-white or traces of hydraulic or lubricating oils, the blowdown procedure for the strainer X-ray film. and trace metals leached or eroded from Only U.S. Navy aircraft carriers, plates may dislodge biota that has the pipes within the system. In addition, which represent fewer than 1% of grown on the plate over time. However, because the discharge is used for vessels of the Armed Forces, are likely this may be mitigated by seawater cooling, the effluent will have an to produce photographic laboratory piping biofouling prevention systems increased temperature. wastewater, if at all. The widespread that reduce the discharge of potential use of digital photography has nearly The discharge sometimes contains ANS. Lastly, the temperature of the eliminated the use of wet film entrained or dissolved materials, discharge could potentially contribute processing and DoD expects that sediment, and biota because seawater to an exceedance of relevant photographic laboratory wastewater cooling water may come in contact with recommended water quality criteria for generation onboard vessels will be sea chests and hull connections. Sea thermal mixing zones while in port. almost entirely eliminated over time. chests and hull connections are Restricting the discharge of seawater For more information regarding equipped with sea strainer plates to cooling and the associated constituents photographic laboratory wastewater, prevent debris from entering the of concern would protect and enhance please see the photographic laboratory seawater cooling system (especially the quality of waters subject to UNDS. lab drains NOD in Appendix A of the when in port or in coastal waters) and 3. Selection of Marine Pollution Control Technical Development Document— may accumulate sediment and biota Device Performance Standard EPA 821–R–99–001. from the seawater during this process. The generation rate of this discharge In selecting the proposed standard, 2. Environmental Effects varies depending on many factors, EPA and DoD considered the Photo lab drain discharges could including the type of vessel, equipment information from Phase I of UNDS, the negatively impact receiving waters due aboard, and vessel operating schedules VGP effluent limitations, and the seven to the possible presence of metals and (number of transits and days in port per statutory factors listed in CWA other toxic pollutants. Specifically, year). Rates can vary from several § 312(n)(2)(B). concentrations of silver could gallons per minute (gpm) for smaller, EPA and DoD propose to require a potentially contribute to an exceedance diesel-powered ships to flows of greater performance standard that restricts the of relevant recommended water quality than 170,000 gpm for aircraft carriers occurrence of the discharge. criteria. The use of digital photography, during full-power steaming. While Specifically, the discharge should occur however, has almost completely transiting near port areas, vessels tend only when the vessel is underway. eliminated the use of wet film to operate their propulsion plants at low Discharges that occur when the vessel is processing and ultimately the waste levels that are sufficient to maintain underway ensure dispersion of any water produced by photo labs. steering control and that do not require adverse thermal impacts. In addition, Restricting the discharge of photo lab the maximum amount of seawater the standard would provide for the drain discharges and the associated cooling. While anchored or pier-side, reduction in production and discharge constituents of concern would protect seawater cooling flow rates are at their of seawater cooling overboard by urging and enhance the quality of waters lowest because only certain auxiliary the use of shore power in port if: (1) subject to UNDS. equipment is required. Shore power is readily available; (2)

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shore-based power supply systems are in which they are pulled into the registration requirements for seawater capable of providing the needed system. piping biofouling chemicals and would electricity; and (3) the vessel is The generation rate of this discharge prohibit discharges within waters equipped to connect to shore-based varies depending on many factors, subject to UNDS of pesticides or power. Certain discharges of cooling including the propulsion plant chemicals banned for use in the United water associated with critical ship operating conditions and the system States. function (e.g., air conditioning system) cooling requirements. There is a greater J. Small Boat Engine Wet Exhaust cannot be eliminated by connecting to demand for cooling water when a vessel shore power and are expected to occur is underway because the propulsion 1. Nature of the Discharge plant is operating. when the vessel is in port. Specifically, Small boat engine wet exhaust EPA and DoD propose to require that, Seawater biofouling prevention equipment is installed on U.S. Navy (SBEWE) is the seawater that is mixed for vessels that are greater than or equal and discharged with small boat to 79 feet in length, fouling organisms aircraft carriers, submarines, some MSC vessels, most surface combatants, newer propulsion engine exhaust to cool the be removed from seawater piping on a exhaust and quiet the engine (40 CFR regular basis and the discharge of such amphibious support ships, many larger auxiliary ships, and some patrol ships, 1700.4(t)). SBEWE occurs on vessels removed organisms would be prohibited that are less than 79 feet in length. within waters subject to UNDS. For all of which represent fewer than 5% of the vessels of the Armed Forces. Small boat engines commonly use vessels that are less than 79 feet in seawater to both cool and quiet their length, maintenance of all piping and For more information regarding seawater piping biofouling, please see exhaust. Seawater passes through the seawater cooling systems would need to heat exchanger, gear oil cooler, and meet the requirements of 40 CFR the seawater piping biofouling prevention NOD in Appendix A of the aftercooler (if equipped), and is then 1700.32 (Seawater Piping Biofouling injected into the exhaust. When Prevention) and fouling organisms Technical Development Document— EPA 821–R–99–001. injected, some of the gaseous and solid removed from seawater piping could not components of the exhaust transfer into be discharged within waters subject to 2. Environmental Effects the cooling water; the cooling water UNDS. Submarines have suction Seawater piping biofouling then discharges into the receiving water. clearing procedures, which must be prevention discharges could negatively Thus, the cooling process can result in performed for vessel safety purposes; impact receiving waters due to the the accumulation of the following therefore, these operational procedures possible presence of chlorinated constituents: Oxides of nitrogen, sulfur to remove fouling organisms are not substances. For chlorinator biofouling dioxide, organic compounds (including subject to these requirements. prevention systems, chlorine is hydrocarbons), carbon monoxide, and I. Seawater Piping Biofouling Prevention discharged in concentrations that could particulates. potentially contribute to an exceedance SBEWE discharge includes 1. Nature of the Discharge of relevant recommended water quality constituents from the engine exhaust criteria. Restricting the discharge of that are transferred to the injected Seawater piping biofouling seawater piping biofouling prevention seawater and discharged overboard. The prevention is defined as the discharge of and the associated constituents of constituents discharged by outboard seawater containing additives used to concern would protect and enhance the engines differ from those discharged by prevent the growth and attachment of quality of waters subject to UNDS. inboard engines due to the different fuel biofouling organisms in dedicated and engine types. Inboard engines seawater cooling systems on selected 3. Selection of Marine Pollution Control usually discharge wet exhaust above the vessels (40 CFR 1700.4(s)). Biofouling Device Performance Standard waterline. Outboard engines generally prevention is accomplished on certain In selecting the proposed standard, discharge wet exhaust underwater vessels with on-board chlorinators that EPA and DoD considered the through the propeller hub. For naval inject low concentrations of sodium information from Phase I of UNDS, the vessels, EPA and DoD estimate that hypochlorite, a chlorine solution, at or VGP effluent limitations, and the seven outboard engines discharge wet exhaust near seawater cooling system intakes. statutory factors listed in CWA at a rate of 20 gpm while inboard diesel Seawater piping biofouling prevention § 312(n)(2)(B). EPA and DoD propose a engines discharge at a rate of 150 gpm. can occur through several technologies. performance standard for seawater Approximately all of the vessels of the Some vessels prevent biofouling with piping biofouling prevention that Armed Forces less than 79 feet in length electrolytic chlorinators that use minimizes the amount of biofouling (5,144) operate with engines that naturally occurring dissolved chloride chemicals (e.g., chlorine) used to keep generate this discharge. to generate chlorine. The resultant free fouling under control. In addition, For more information regarding chlorine and reaction products from fouling organisms would need to be SBEWE, please see the SBEWE NOD in saltwater are collectively called removed via a cleaning event from Appendix A of the Technical ‘‘chlorine produced oxidants’’ or CPO. seawater piping on a regular basis to Development Document—EPA 821–R– Discharges from seawater biofouling minimize the impact to the receiving 99–001. treatment systems are continuous for as waters. Fouling organisms removed long as seawater cooling systems are in during a cleaning event would be 2. Environmental Effects operation. The seawater is pumped prohibited from being discharged within SBEWE could negatively impact through heat exchangers where the waters subject to UNDS to prevent the receiving waters due to the possible seawater absorbs heat and is then spread of ANS. This prohibition would presence of nitrogen oxides, sulfur discharged overboard. The anti- not apply to the discharge of organisms dioxide, carbon monoxide, biofouling systems are designed to resulting from the routine chemical hydrocarbons, and other organic prevent organisms from attaching to any biofouling control system nor would it compounds and particulates. part of seawater systems, resulting in apply to submarines. Lastly, this Specifically, benzene, toluene, the discharge of such organisms directly performance standard would require ethylbenzene, and naphthalene overboard in the same geographical area practices consistent with FIFRA concentrations in two-stroke outboard

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engines could potentially contribute to Agriculture washes for the welldeck, EPA and DoD propose to prohibit an exceedance of relevant recommended vehicle storage areas, and all vehicles, welldeck discharges containing water quality criteria. Benzene and equipment, and landing craft during graywater within waters subject to ethylbenzene concentrations in four- overseas operations. The constituents UNDS and would prohibit the stroke outboard engine wet exhaust, and expected in welldeck discharges include washdown of gas turbine engines within total polycyclic aromatic hydrocarbons freshwater, distilled water, firemain three nautical miles of the United States in inboard engine wet exhaust also water, graywater, air-conditioning to minimize the impact of oil and grease could potentially contribute to an condensate, sea-salt residues, paint on nearshore waters. Welldeck exceedance of relevant recommended chips, wood splinters, dirt, sand, discharges from equipment and vehicle water quality criteria. Restricting the organic debris, oil, grease, fuel, washdowns would need to be free from discharge of SBEWE and the associated detergents, combustion by-products, garbage, and could not contain oil in constituents of concern would protect and lumber treatment chemicals. quantities that cause a film or sheen Depending on the specific activities and enhance the quality of waters upon or discoloration of the surface of subject to UNDS. conducted, welldeck discharges may contain a variety of residual the water or adjoining shorelines, or 3. Selection of Marine Pollution Control constituents, including oil and grease, cause a sludge or emulsion to be Device Performance Standard ethylene glycol (antifreeze), chlorine, deposited beneath the surface of the In selecting the proposed standard, detergents/cleaners, metals, solvents, water or upon adjoining shorelines, or EPA and DoD considered the ANS, and sea-salt residues. Effluent is contain an oil content above 15 ppm as information from Phase I of UNDS, the discharged to the environment by measured by EPA Method 1664 or other VGP effluent limitations, and the seven washout or surge when landing craft are appropriate method for determination of statutory factors listed in CWA operating in the welldeck or when oil content as accepted by the § 312(n)(2)(B). EPA and DoD propose washdowns occur. Effluent from the International Maritime Organization that alternative fuels be used to reduce various washes performed on the (IMO) (e.g., ISO Method 9377) or U.S. the concentration of pollutants in the welldeck is either discharged as it Coast Guard, or otherwise are harmful to discharges from SBEWE. In addition, drains overboard from the welldeck or the public health or welfare of the the performance standard would is pumped overboard by an eductor, a United States. indicate that, for vessels generating wet vacuum-like device. The volume of the IV. Additional Information of the exhaust, four-stroke engines should be welldeck effluent varies depending on Proposed Rule considered instead of two-stroke the type of landing craft to be loaded or engines. Vessels using two-stroke unloaded. This section provides an overview of engines would be required to use Only U.S. Navy amphibious support the additional amendments proposed environmentally acceptable lubricants ships with welldecks, which represent for 40 CFR part 1700. These proposed fewer than 1% of the vessels of the (found in the proposed definition for changes include an amendment to Armed Forces, produce this discharge. this term at 40 CFR 1700.3) unless such subsections referenced Effect (§ 1700.2), use would be technologically infeasible. For more information regarding welldeck discharges, please see the a provision that would authorize certain Additionally, the standard would urge discharges notwithstanding the that low sulfur alternative fuels should welldeck discharges NOD in Appendix A of the Technical Development proposed performance standards in be used to reduce the concentration of situations where vessel safety or lives pollutants in discharges from small boat Document—EPA 821–R–99–001. are endangered (§ 1700.39), a provision engine wet exhaust. 2. Environmental Effects that would require combined discharge K. Welldeck Discharges Welldeck discharges could negatively streams to meet the requirements impact receiving waters due to the 1. Nature of the Discharge applicable to all discharge streams that presence of oil and grease. These are combined (§ 1700.40), a proposed Welldeck discharges are defined as discharges have the potential to cause requirement for recordkeeping the water that accumulates from adverse environmental effects because (§ 1700.41), and a proposed requirement seawater flooding of the docking well oil drippings spilled during vehicle and to report instances of non-compliance (welldeck) of an amphibious support equipment maintenance could leave an with MPCD performance standards ship used to transport, load, and unload oil film on the deck surface. The oil has (§ 1700.42). amphibious vehicles, and from the potential to be discharged overboard maintenance and freshwater washings when the welldeck becomes flooded 1. Amendment to Subsections of the welldeck and equipment and and could possibly create an oil sheen Referenced in § 1700.2 Effect vessels stored in the welldeck (40 CFR that could potentially contribute to an EPA and DoD are proposing to amend 1700.4(y)). The welldeck is a floodable exceedance of relevant recommended the reference sections noted in the Effect platform used for launching or loading water quality criteria. Restricting the Section 1700.2 (a) by amending small satellite amphibious vehicles, discharge of welldeck discharges and landing crafts, and cargo. Welldeck the associated constituents of concern ‘‘Federal standards of performance for discharges may include the following: would protect and enhance the quality each required Marine Pollution Control (1) Washout when the ship ballasts to of waters subject to UNDS. Device are listed in § 1700.14’’ to embark or disembark landing craft; (2) ‘‘Federal standards of performance for water or detergent and water mixture 3. Selection of Marine Pollution Control each required Marine Pollution Control used for air-cushion landing craft gas Device Performance Standard Device are listed in §§ 1700.14 through turbine engine washes; (3) graywater In selecting the proposed standard, 1700.38. Federal standards of and condensate that can be discharged EPA and DoD considered the performance apply to all vessels, from the utility landing craft; (4) information from Phase I of UNDS, the whether existing or new, and regardless freshwater wash to remove salt and dirt VGP effluent limitations, and the seven of vessel class, type, or size, unless from vehicles, equipment, and landing statutory factors listed in CWA otherwise expressly provided in craft; and (5) U.S. Department of § 312(n)(2)(B). §§ 1700.14 through 1700.38.’’

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2. Reservation of Sections 6. Section 1700.42 Non-Compliance school district or special district with a Reports population of less than 50,000; and (3) As noted previously, EPA and DoD a small organization that is any not-for- are proposing the Phase II standards in EPA and DoD propose to add a ‘‘Non- Compliance Reports’’ subsection at profit enterprise which is independently two batches. For the purpose of owned and operated and is not proposing the second batch, the § 1700.42. By adding this subsection, EPA and DoD propose reporting dominant in its field. proposal reserves the following sections The proposed rule has no direct requirements for any non-compliance for those future rulemaking actions: effects on small entities as it only with performance standards prescribed Section 1700.15 Catapult Water Brake applies to discharges from a vessel of for this Part. Tank & Post-Launch Retraction the Armed Forces. Small entities do not Exhaust; V. Related Acts of Congress and own or operate vessels of the Armed Section 1700.17 Clean Ballast; Executive Orders Forces. Hence, after considering the economic impacts of the proposed rule Section 1700.18 Compensated Fuel A. Executive Order 12866: Regulatory on small entities, EPA and DoD certify Ballast; Planning and Review and Executive that this action will not have a Section 1700.19 Controllable Pitch Order 13563: Improving Regulation and Propeller Hydraulic Fluid; significant economic impact on a Regulatory Review substantial number of small entities. Section 1700.20 Deck Runoff; This action is not a ‘‘significant Section 1700.21 Dirty Ballast; regulatory action’’ under Executive D. Unfunded Mandates Reform Act Section 1700.24 Firemain Systems; Order 12866 (58 FR 51735, October 4, This action contains no Federal Section 1700.26 Graywater; 1993) and is therefore not subject to mandates under the provisions of Title Section 1700.27 Hull Coating review under Executive Orders 12866 II of the Unfunded Mandates Reform Leachate; and 13563 (76 FR 3821, January 21, Act of 1995 (UMRA), 2 U.S.C. 1531– Section 1700.28 Motor Gasoline and 2011). 1538 for state, local, or tribal governments or the private sector. The Compensating Discharge; B. Paperwork Reduction Act Section 1700.34 Sonar Dome action implements mandates Discharge; This action does not impose any new specifically and explicitly set forth by information collection burden, as EPA the Congress in UNDS. The proposed Section 1700.35 Submarine and DoD have determined that Phase II rule contains no Federal mandates Bilgewater; of UNDS does not create any additional (under the regulatory provisions of Title Section 1700.36 Surface Vessel collections of information beyond those II of the UMRA) for state, local, or tribal Bilgewater/Oil-Water Separator already mandated under the existing governments or the private sector Effluent (OWSE); and Phase I of UNDS. The Office of because the rule imposes no enforceable Section 1700.37 Underwater Ship Management and Budget (OMB) has duty on any of these entities. Therefore, Husbandry. previously approved the information the proposed rule is not subject to the 3. Section 1700.39 Exceptions collection requirements contained in the requirements of sections 202 and 205 of existing regulations (40 CFR part 1700) the UMRA. EPA and DoD have EPA and DoD propose to add an under the provisions of the Paperwork determined that the proposed rule ‘‘Exceptions’’ subsection at § 1700.39, Reduction Act, 44 U.S.C. 3501 et seq. contains no regulatory requirements that which would provide a place to identify and has assigned OMB control number might significantly or uniquely affect certain excluded discharges from the 2040–0187. The OMB control numbers small governments. scope of UNDS notwithstanding the for EPA’s regulations in 40 CFR are In developing the proposed rule, EPA proposed performance standards in listed in 40 CFR part 9. consulted with small governments situations where vessel safety or lives under a plan developed pursuant to are endangered. The section also would C. Regulatory Flexibility Act as section 203 of UMRA concerning the identify requirements for maintaining Amended by the Small Business regulatory requirements in the proposed records of all discharge exceptions. Regulatory Enforcement Fairness Act of rule that might significantly or uniquely 1996 4. Section 1700.40 Commingling of affect small governments. EPA and DoD Discharges The Regulatory Flexibility Act (RFA) notified potentially affected small generally requires an agency to prepare governments of those requirements; EPA and DoD propose to add a a regulatory flexibility analysis of any enabled officials of affected small ‘‘Commingling of Discharges’’ rule subject to notice and comment governments to have meaningful and subsection at § 1700.40. By adding this rulemaking requirements under the timely input into the development of subsection, EPA and DoD propose that Administrative Procedure Act or any regulatory proposals with any if two or more regulated discharge other statute unless the agency certifies significant Federal intergovernmental streams are combined into one, the that the rule will not have a significant mandates; and informed, educated, and resulting discharge stream must meet economic impact on a substantial advised small governments on the requirements applicable to all number of small entities. Small entities compliance with the regulatory discharge streams that are combined include small businesses, small requirements. For more information on prior to discharge. organizations, and small governmental the consultations conducted with state 5. Section 1700.41 Records jurisdictions. and local or tribal governments, consult For purposes of assessing the impacts the sections below regarding Executive EPA and DoD propose to add a of the proposed rule on small entities, Order 13132 and Executive Order ‘‘Records’’ subsection at § 1700.41. By small entity is defined as: (1) A small 13175, respectively. adding this subsection, EPA and DoD business as defined by the Small propose recordkeeping requirements Business Administration’s (SBA) E. Executive Order 13132: Federalism that shall document all inspections, regulations at 13 CFR 121.201; (2) a Executive Order 13132, entitled instances of non-compliance, and small governmental jurisdiction that is a ‘‘Federalism’’ (64 FR 43255, August 10, instances of an exception. government of a city, county, town, 1999), requires Federal agencies to

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develop an accountable process to for developing the proposed standards are designed to control ensure ‘‘meaningful and timely input by performance standards for the 25 UNDS discharges incidental to the normal state and local officials in the discharges identified in Phase I as operation of a vessel of the Armed development of regulatory policies that requiring control. Forces that could adversely affect have federalism implications.’’ ‘‘Policies human health and the environment. The F. Executive Order 13175: Consultation that have federalism implications’’ is standards will reduce the impacts to the and Coordination With Indian Tribal defined in the Executive Order to receiving waters and any person using Governments include regulations that have the receiving waters, regardless of age. ‘‘substantial direct effects on the states, Executive Order 13175, entitled For these reasons, EPA and DoD do not on the relationship between the national ‘‘Consultation and Coordination with have reason to believe that the proposed government and the states, or on the Indian Tribal Governments’’ (65 FR rule will present a disproportionate risk distribution of power and 67249, November 6, 2000), requires to children. responsibilities among the various Federal agencies to develop an H. Executive Order 13211: Actions That levels of government.’’ Under Executive accountable process to ensure Concern Regulations That Significantly Order 13132, Federal agencies may not ‘‘meaningful and timely input by tribal Affect Energy Supply, Distribution, and issue a regulation that has federalism officials in the development of Use implications and that preempts state regulatory policies that have tribal law, unless the Agency consults with implications.’’ The UNDS rulemaking The proposed rule is not subject to state and local officials early in the will not impact vessels operated by Executive Order 13211 (66 FR 28355, process of developing the proposed tribes because the rule only regulates May 22, 2001) because the proposed regulation. discharges from vessels of the Armed rule is not likely to have any adverse EPA and DoD concluded that the Forces. However, tribes may be energy effects because it only applies to proposed rule, once finalized in Phase interested in this action because vessels discharges incidental to the normal III, will have federalism implications. of the Armed Forces, including U.S. operation of a vessel of the Armed Once the proposed national discharge Coast Guard vessels, may operate in or Forces. The 11 discharges from a vessel performance standards are promulgated near tribal waters. EPA hosted a of the Armed Forces do not affect energy in Phase III by DoD, adoption and National Teleconference on March, 26, supply, distribution, or use. enforcement of new or existing state or 2013, in order to obtain meaningful and I. National Technology Transfer and local regulations for the discharges will timely input during the development of Advancement Act be preempted. Accordingly, EPA and the proposed discharge standards. EPA DoD provide the following federalism and DoD informed the representatives Section 12(d) of the National summary impact statement as required that the two agencies planned to use the Technology Transfer and Advancement by section 6(c) of Executive Order VGP effluent limitations as a baseline Act of 1995 (NTTAA), Public Law 104– 13132. for developing the performance 113, 12(d) (15 U.S.C. 272 note) directs During Phase I of UNDS, EPA and standards for the 25 UNDS discharges Federal agencies to use voluntary DoD conducted two rounds of identified in Phase I as requiring consensus standards in their regulatory consultation meetings (i.e., outreach control. activities unless doing so would be briefings) to allow states to have inconsistent with applicable law or G. Executive Order 13045: Protection of meaningful and timely input into the otherwise impractical. Voluntary Children From Environmental Health development of the rulemaking. consensus standards are technical and Safety Risks Twenty-two states accepted the offer to standards (e.g., materials specifications, be briefed on UNDS and discuss state Executive Order 13045, entitled test methods, sampling procedures, and concerns. EPA and DoD provided ‘‘Protection of Children from business practices) that are developed or clarification on the technical aspects of Environmental Health Risks and Safety adopted by voluntary consensus the UNDS process, including Risks’’ (62 FR 19885, April 23, 1997), standards bodies. When available and preliminary discharge determinations applies to any rule that is determined to potentially applicable voluntary and analytical information supporting be ‘‘economically significant’’ as consensus standards are not used by decisions to control or not control defined under Executive Order 12866, EPA or DoD, NTTAA requires EPA and discharges. State representatives were and concerns an environmental health DoD to provide Congress, through OMB, provided with discharge summaries or safety risk that EPA and DoD have an explanation of the reasons for not containing the description, analysis, and reason to believe may have a using such standards. preliminary determination of each of the disproportionate effect on children. If The proposed rule involves 39 discharges from vessels of the Armed the regulatory action meets both criteria, performance standards for certain Forces—25 of which were determined to EPA and DoD must evaluate the discharges from a vessel of the Armed require control. environmental health or safety effects of Forces. EPA and DoD performed a During Phase II, EPA and DoD the planned rule on children, and search to identify potentially applicable consulted again with state explain why the planned regulation is voluntary consensus standards. EPA representatives early in the process of preferable to other potentially effective and DoD determined that the ISO developing the proposed regulation. On and reasonably feasible alternatives Method 9377—determination of March 14, 2013, EPA held a Federalism considered by EPA and DoD. hydrocarbon oil index—is a voluntary consultation in Washington, DC, and The proposed rule is not subject to the consensus standard and is being used as invited representatives from states and Executive Order because it is not part of the proposed UNDS performance political subdivisions of states in order economically significant as defined in standards. to obtain meaningful and timely input Executive Order 12866, and because in the development of the proposed EPA and DoD do not have reason to J. Executive Order 13112: Invasive discharge standards. EPA and DoD believe the environmental health or Species informed the state representatives that safety risks addressed by this action Executive Order 13112, entitled the two agencies planned to use the present a disproportionate risk to ‘‘Invasive Species’’ (64 FR 6183, VGP effluent limitations as a baseline children. The 11 proposed discharge February 8, 1999), requires each Federal

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agency, whose actions may affect the K. Executive Order 13089: Coral Reef executive policy on environmental status of invasive species, identify such Protection justice. Its main provision directs actions, and, subject to the availability Executive Order 13089, entitled Federal agencies, to the greatest extent of appropriations, use relevant programs ‘‘Coral Reef Protection’’ (63 FR 32701, practicable and permitted by law, to and authorities to, among other things, June 16, 1998), requires all Federal make environmental justice part of their prevent, detect, control, and monitor the agencies to identify actions that may mission by identifying and addressing, introduction of invasive species. As affect U.S. coral reef ecosystems; utilize as appropriate, disproportionately high defined by this Executive Order, their programs and authorities to protect and adverse human health or ‘‘invasive species’’ means an alien and enhance the conditions of such environmental effects of their programs, species whose introduction does or is ecosystems; and to the extent permitted policies, and activities on minority likely to cause economic or by law, ensure that any actions they populations and low-income environmental harm or harm to human authorize, fund, or carry out will not populations in the United States. health. degrade the conditions of such ecosystems. The proposed discharge The proposed discharge performance As part of the environmental effects standards are designed to control or standards would only apply to a vessel analyses, EPA and DoD considered the eliminate the discharges incidental to of the Armed Forces and would control of invasive species when the normal operation of a vessel of the ultimately increase environmental developing the proposed discharge Armed Forces, ultimately minimizing protection; therefore, EPA and DoD performance standards for all 11 the potential for causing adverse determined that the proposed discharge discharges (See Section II). Therefore, impacts to the marine environment performance standards would not the proposed discharge standards will including coral reefs. disproportionately and adversely affect help prevent or control the introduction minority or low-income populations. L. Executive Order 12898: Federal of invasive species into federally- Actions To Address Environmental VI. APPENDIX A—DESCRIPTION OF protected waters and waters subject to Justice in Minority Populations and VESSELS OF THE ARMED FORCES UNDS. Low-Income Populations Executive Order 12898 (59 FR 7629, February, 16, 1994) establishes Federal

TABLE A–1

Total vessels of the armed forces Large vessels Small vessels Vessel type (greater than or equal to 79 feet) (less than 79 feet) Count % of vessels Count % of vessels

Aircraft Carriers ...... 11 1 ...... Amphibious Support Ships ...... 37 3 ...... Auxiliary Ships ...... 368 32 ...... Boats ...... 5,132 100 Patrol Ships ...... 203 17 ...... Service Craft ...... 355 31 12 < 1 Submarines ...... 72 6 ...... Surface Combatants ...... 115 10 ......

Total ...... 1,161 100 5,144 100 Table A–1 provides information regarding the composition of vessels of the Armed Forces by vessel type and vessel size.

Aircraft Carriers: These are the largest welldecks to support the recovery of recovering targets and drones. This vessels of the Armed Forces. They are landing crafts and amphibious vehicles. vessel class has crew sizes ranging from designed primarily for conducting These large ocean-going vessels may 10 to 200 people. Depending on mission combat operations by fixed wing aircraft operate within waters subject to UNDS and operation requirements, these that are launched with catapults. during training and testing of vessels operate both within and seaward Nuclear energy powers all vessels in equipment. of waters subject to UNDS. this group. Aircraft carriers exceed Auxiliary Ships: This is a large and Boats: This type of vessel 1,000 feet in length, and have crews of diverse group of self-propelled vessels encompasses 81% of the vessels of the 4,000 to 6,000. Except during transit in with lengths equal to or greater than 79 Armed Forces and includes all self- and out of port, these vessels operate feet and designed to provide general propelled vessels less than 79 feet in predominantly seaward of waters support to either combatant forces or length. These vessels are used for such subject to UNDS. shore-based establishments. These ships roles as security, combat operations, Amphibious Support Ships: These are fulfill multiple duties including but not rescue, and training. Because of their large vessels, ranging in length from 569 limited to transporting supplies (e.g., relative small size, these vessels have feet to 847 feet, designed to support fuel, ammunitions) and troops to and small crews that range from 1 to 19, and amphibious assault operations. Many of from the theater of operations, executing produce limited sources of liquid these vessels have large clean ballast mine countermeasures operations, discharges. These vessels operate tanks used to lower and raise the hull conducting research, maintaining predominantly within waters subject to during amphibious operations, and navigations systems (e.g., buoys), and UNDS, but may operate seaward of

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waters subject to UNDS when deployed Dated: December 20, 2013. either to the removal of at least 70 from larger ships. Gina McCarthy, percent of dissolved organic carbon, Patrol Ships: These are self-propelled Administrator, Environmental Protection production of at least 60 percent of the vessels with lengths equal to or greater Agency. theoretical carbon dioxide, or than 79 feet, and are designed to Dated: January 15, 2014. consumption of at least 60 percent of conduct patrol duties (i.e., maritime Dennis McGinn, the theoretical oxygen demand within homeland security, law enforcement, Assistant Secretary of the Navy,Energy, 28 days. Acceptable test methods and national defense missions). Vessels Installations & Environment. include: Organization for Economic Co- operation and Development Test in this group have crew sizes ranging For the reasons stated in the Guidelines 301 A–F, 306, and 310, and from 10 to 200. Some vessels in this preamble, title 40, chapter VII, of the International Organization for group may operate seaward of waters Code of Federal Regulations is proposed Standardization 14593:1999. subject to UNDS, but the majority to be amended as follows: (2) Regarding biocidal substances, predominantly operates within waters PART 1700—UNIFORM NATIONAL ‘‘biodegradable’’ means the compound subject to UNDS conducting security or mixture in question yields 60 percent patrol missions. DISCHARGE STANDARDS FOR VESSELS OF THE ARMED FORCES of its theoretical maximum carbon Service Craft: This is a diverse group dioxide and demonstrate a removal of at of non-self-propelled vessel classes ■ 1. The authority citation for 40 CFR least 70 percent of dissolved organic designed to provide general support to part 1700 continues to read as follows: carbon within 28 days as described in other vessels in the Armed Forces fleet Authority: 33 U.S.C. 1322, 1361. EPA 712–C–98–075 (OPPTS 835.3100 or shore-based establishments. Vessel Aerobic Aquatic Biodegradation). classes in this group have an average Subpart A—Scope * * * * * length of 155 feet with more than 95% Environmentally acceptable ■ of them being between 40 feet and 310 2. Amend § 1700.2 by revising lubricants means lubricants that are feet. While most of these vessels have a paragraph (a) to read as follows: ‘‘biodegradable’’ and ‘‘non-toxic,’’ and very limited crew or no crew, barracks § 1700.2 Effect. are not ‘‘bioaccumulative’’ as defined in craft can provide sleeping (a) This part identifies those this Subpart. Products meeting the accommodations for 100 to 1,200 crew discharges, other than sewage, definition of ‘‘environmentally members. These vessels include incidental to the normal operation of acceptable lubricant’’ include those multiple barges and lighter designs, Armed Forces vessels that require labeled by the following labeling dredges, floating dry docks, floating control within the navigable waters of programs: Blue Angel, European cranes, floating causeway ferries, the United States and the waters of the Ecolabel, Nordic Swan, the Swedish floating roll-on-off discharge facilities, contiguous zone, and those discharges Standards SS 1554434 and 155470, dry deck shelters, floating workshops, that do not require control. Discharges Convention for the Protection of the and floating barracks. These vessels requiring control are identified in Marine Environment of the North-East operate predominantly within waters § 1700.4. Discharges not requiring Atlantic (OSPAR) requirements, and subject to UNDS. control are identified in § 1700.5. EPA’s Design for the Environment (DfE). Submarines: These submersible Federal standards of performance for * * * * * combat vessels powered with nuclear each required Marine Pollution Control Federally-protected waters means energy can fulfill combatant, auxiliary, Device are listed in §§ 1700.14 through waters within 12 nautical miles of the or research and development roles. 1700.38. Federal standards of United States that are also part of any Except during transit in and out of port, performance apply to all vessels, of the following: (1) Marine sanctuaries designated these vessels operate predominantly whether existing or new, and regardless under the National Marine Sanctuaries seaward of waters subject to UNDS. of vessel class, type, or size, unless otherwise expressly provided in Act (16 U.S.C. 1431 et seq.) or Marine Surface Combatants: These are §§ 1700.14 through 1700.38. National Monuments designated under surface ships designed primarily to * * * * * the Antiquities Act of 1906; engage in attacks against airborne, ■ 3. Section 1700.3 is amended by (2) A unit of the National Wildlife surface, sub-surface, and shore targets. adding in alphabetical order definitions Refuge System, including Wetland Vessel classes in this group range in for ‘‘Bioaccumulative,’’ Management Districts, Waterfowl length from 378 feet to 567 feet, and ‘‘Biodegradable,’’ ‘‘Environmentally Production Areas, National Game have crew sizes that range from 40 for acceptable lubricants,’’ ‘‘Federally- Preserves, Wildlife Management Areas, the Littoral Combat Ship to under 400 protected waters,’’ ‘‘Hazardous and National Fish and Wildlife Refuges; (3) National Wilderness Areas; and for a Guided Missile Destroyer or material,’’ ‘‘Non-toxic,’’ ‘‘Person in (4) Any component designated under Cruiser. Except during transit in and out charge,’’ ‘‘Toxic materials,’’ and ‘‘Waters the National Wild and Scenic Rivers of port, these vessels operate subject to UNDS’’ to read as follows: predominantly seaward of waters System. subject to UNDS. § 1700.3 Definitions. Hazardous material means any * * * * * hazardous material as defined in 49 CFR Uniform National Discharge Standards Bioaccumulative means the partition 171.8. for Vessels of the Armed Forces—Phase coefficients in the marine environment * * * * * II are log Kow >3 using test Methods Non-toxic means a substance must List of Subjects in 40 CFR Part 1700 OECD 117 and 107. pass both OECD 201, 202, and 203 for Biodegradable means: acute toxicity testing, and OECD 210 Environmental protection, Armed (1) Regarding cleaning products and and 211 for chronic toxicity testing. If a Forces, Vessels, Coastal zone, Reporting environmentally acceptable lubricants, substance is evaluated for the and recordkeeping requirements, Water ‘‘biodegradable’’ means the compound formulation and main constituents, the pollution control. or mixture in question that is subject LC50 of hydraulic fluids must be at least

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100 mg/L and the LC50 of greases, two- 1700.18 [Reserved]. any potential accompanying pollutants. stroke oils, and all other total loss 1700.19 [Reserved]. The dates of all chain locker inspections lubricants must be at least 1000 mg/L. 1700.20 [Reserved]. must be recorded in the ship’s log or If a substance is evaluated for each 1700.21 [Reserved]. other vessel recordkeeping 1700.22 Distillation and reverse osmosis constituent substance, rather than the brine. documentation. complete formulation and main 1700.23 Elevator pit effluent. (c) For vessels that sail seaward of compounds, then constituents 1700.24 [Reserved]. waters subject to UNDS at least once per comprising less than 20 percent of 1700.25 Gas turbine water wash. month, chain lockers shall not be rinsed hydraulic fluids can have an LC50 1700.26 [Reserved]. or pumped out within waters subject to between 10–100 mg/L or a no observed 1700.27 [Reserved]. UNDS. If technically feasible, the chain effect concentration (NOEC) between 1– 1700.28 [Reserved]. locker shall be periodically cleaned, 10 mg/L, constituents comprising less 1700.29 Non-oily machinery wastewater. rinsed, and/or the accumulated water than 5 percent of hydraulic fluids can 1700.30 Photographic laboratory drains. and sediment (i.e., chain locker effluent) 1700.31 Seawater cooling overboard shall be pumped out prior to entering have an LC50 between 1–10 mg/L or a discharge. NOEC between 0.1–1 mg/L, and 1700.32 Seawater piping biofouling waters subject to UNDS (preferably in constituents comprising less than 1 prevention. mid-ocean). percent of hydraulic fluids can have an 1700.33 Small boat engine wet exhaust. (d) For vessels that do not sail LC50 less than 1 mg/L or a NOEC 1700.34 [Reserved]. seaward of waters subject to UNDS at between 0–0.1 mg/L. 1700.35 [Reserved]. least once per month, if a discharge of Person in charge (PIC) means the 1700.36 [Reserved]. chain locker effluent occurs within single individual named master of the 1700.37 [Reserved]. waters subject to UNDS it shall occur at vessel or placed in charge of the vessel, 1700.38 Welldeck discharges. the greatest distance practicable from by the U.S. Department of Defense or by 1700.39 Exceptions. shore and, if technically feasible, shall 1700.40 Commingling of discharges. the Department in which the U.S. Coast 1700.41 Records. not be discharged in federally-protected Guard is operating, as appropriate, and 1700.42 Non-compliance reports. waters. who is responsible for the operation, § 1700.17 [Reserved]. manning, victualing, and supplying of Subpart D—Marine Pollution Control the vessel of the Armed Forces. Device (MPCD) Performance Standards § 1700.18 [Reserved]. (1) Examples of a PIC include but are not limited to: § 1700.14 Aqueous film-forming foam. § 1700.19 [Reserved]. (a) For the purposes of this section, (i) A Commanding Officer, Officer in § 1700.20 [Reserved]. Charge, or senior commissioned officer regulated aqueous film-forming foam on board the vessel; (AFFF) refers only to firefighting foam § 1700.21 [Reserved]. (ii) A civilian, military, or U.S. Coast and seawater mixture discharged during Guard person assigned to a shore training, testing, or maintenance § 1700.22 Distillation and reverse osmosis brine. command or activity that has been operations. designated as the PIC for one or more (b) For vessels that sail seaward of Brine from the distillation system and vessels, such as a group of boats or craft; waters subject to UNDS at least once per reverse osmosis reject water shall not be (iii) A Tugmaster, Craftmaster, month, discharges of AFFF are discharged if it comes in contact with Coxswain, or other senior enlisted prohibited (i.e., collect and store for on machinery or industrial equipment person onboard the vessel; shore disposal or discharge when the (other than distillation or reverse (iv) A licensed civilian mariner vessel is located seaward of waters osmosis machinery), toxic or hazardous onboard a Military Sealift Command subject to UNDS). materials, or wastes. vessel; or (c) For vessels that do not sail § 1700.23 Elevator pit effluent. (v) A contracted commercial person at seaward of waters subject to UNDS at Direct discharges of elevator pit a shore installation that is not part of the least once per month: effluent overboard are prohibited. Armed Forces but as identified by the (1) Discharges of fluorinated AFFF are Notwithstanding the prohibition of U.S. Department of Defense or the prohibited (i.e., collect and store for direct discharges of elevator pit effluent Department in which the U.S. Coast onshore disposal or discharge when the overboard, if the elevator pit effluent is Guard is operating. vessel is located seaward of waters commingled with any other discharge subject to UNDS); and * * * * * for the purposes of treatment prior to (2) Discharges of a non-fluorinated or Toxic materials means any toxic discharge, then under no circumstances alternative foaming agent are prohibited pollutant identified in 40 CFR 401.15. may oils, including oily mixtures, be in port or in or near federally-protected * * * * * discharged from that combined waters, and should occur as far from Waters subject to UNDS means the discharge in quantities that: shore as possible. navigable waters of the United States, (a) Cause a film or sheen upon or including the territorial seas and the § 1700.15 [Reserved]. discoloration of the surface of the water waters of the contiguous zone, as these or adjoining shorelines; or terms are defined in the Clean Water § 1700.16 Chain locker effluent. (b) Cause a sludge or emulsion to be Act (33 U.S.C. 1362). (a) For all vessels, except submarines, deposited beneath the surface of the ■ 4. Revise Subpart D to read as follows: the anchor chain must be carefully and water or upon adjoining shorelines; or Subpart D—Marine Pollution Control Device thoroughly washed down (i.e., more (c) Contain an oil content above 15 (MPCD) Performance Standards than a cursory rinse) as it is being ppm as measured by EPA Method 1664 Sec. hauled out of the water to remove or other appropriate method for 1700.14 Aqueous film-forming foam. sediment and organisms. determination of oil content as accepted 1700.15 [Reserved]. (b) For all vessels, the chain lockers by the International Maritime 1700.16 Chain locker effluent. must be cleaned periodically to Organization (IMO) (e.g., ISO Method 1700.17 [Reserved]. eliminate accumulated sediments and 9377) or U.S. Coast Guard; or

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(d) Otherwise are harmful to the § 1700.30 Photographic laboratory drains. § 1700.32 Seawater piping biofouling public health or welfare of the United Direct discharges of photographic prevention. States. laboratory drains overboard are (a) Seawater piping biofouling prohibited. chemicals subject to registration under § 1700.24 [Reserved]. the Federal Insecticide, Fungicide, and § 1700.31 Seawater cooling overboard § 1700.25 Gas turbine water wash. Rodenticide Act (FIFRA) (40 CFR discharge. 152.15) must be used in accordance Direct discharges of gas turbine water For discharges from vessels that are with the FIFRA label. Pesticides or wash overboard are prohibited. Gas less than 79 feet in length: chemicals banned for use in the United turbine water wash should be collected (a) When possible, non-contact engine States shall not be discharged. separately and disposed of at an onshore cooling water, hydraulic system cooling (b) Only the minimum amount of facility. Notwithstanding the water, refrigeration cooling water and biofouling chemicals should be used to prohibition of direct discharges of gas other seawater cooling overboard keep fouling under control. turbine water wash overboard, if the gas discharges should occur when the (c) Fouling organisms must be turbine water wash is commingled with vessel is underway in order to minimize removed from seawater piping on a any other discharge for the purposes of any thermal impacts to the receiving regular basis. For all vessels, except treatment prior to discharge then under water. submarines, fouling organisms removed no circumstances may oils, including (b) To reduce the production and during cleanings shall not be oily mixtures be discharged from that discharge of seawater cooling overboard discharged. combined discharge in quantities that: discharge, the vessel should use shore (a) Cause a film or sheen upon or based power when in port if: § 1700.33 Small boat engine wet exhaust. discoloration of the surface of the water (1) Shore power is readily available For discharges from vessels that are or adjoining Shorelines; or for the vessel from utilities or port less than 79 feet in length: (b) Cause a sludge or emulsion to be authorities; and (a) Vessels generating small boat deposited beneath the surface of the (2) Shore based power supply systems engine wet exhaust must be maintained water or upon adjoining shorelines; or are capable of providing all needed in good operating order, well tuned, and (c) Contain an oil content above 15 electricity required for vessel functioning according to manufacturer ppm as measured by EPA Method 1664 operations; and specifications in order to decrease or other appropriate method for (3) The vessel is equipped to connect pollutant concentrations and volumes in determination of oil content as accepted to shore-based power and such systems small boat engine wet exhaust. by the International Maritime are compatible with the available shore (b) Low sulfur or alternative fuels Organization (IMO) (e.g., ISO Method power. should be used to reduce the 9377) or U.S. Coast Guard; or (c) Fouling organisms must be concentration of pollutants in (d) Otherwise are harmful to the removed from seawater piping on a discharges from small boat engine wet public health or welfare of the United regular basis. Fouling organisms exhaust. States. removed during cleanings shall not be (c) If possible, use four-stroke engines discharged. instead of two-stroke engines for vessels § 1700.26 [Reserved]. For discharges from vessels that are generating small boat engine wet exhaust. Use of a four-stroke engine may § 1700.27 [Reserved]. greater than or equal to 79 feet in length: (d) When possible, non-contact engine minimize the discharge of pollutants. § 1700.28 [Reserved]. cooling water, hydraulic system cooling (d) Vessels using two-stroke engines water, refrigeration cooling water and must use environmentally acceptable § 1700.29 Non-oily machinery wastewater. other seawater cooling overboard lubricants unless use of such lubricants If non-oily machinery wastewater is discharges should occur when the is technologically infeasible. If discharged directly overboard or if it is vessel is underway in order to minimize technologically infeasible, the use and commingled with any other discharge any thermal impacts to the receiving justification for the use of a non- for the purposes of treatment prior to waters. environmentally acceptable lubricant discharge, then the discharge must be (e) To reduce the production and must be recorded in the vessel free from any additives that are toxic or discharge of seawater cooling overboard recordkeeping documentation. bioaccumulative in nature and under no discharge, the vessel should use shore § 1700.34 [Reserved]. circumstances may oils, including oily based power when in port if: mixtures be discharged from that (1) Shore power is readily available § 1700.35 [Reserved]. combined discharge in quantities that: for the vessel from utilities or port (a) Cause a film or sheen upon or authorities; and § 1700.36 [Reserved]. discoloration of the surface of the water (2) Shore based power supply systems § 1700.37 [Reserved]. or adjoining shorelines; or are capable of providing all needed (b) Cause a sludge or emulsion to be electricity required for vessel § 1700.38 Welldeck discharges. deposited beneath the surface of the operations; and Welldeck discharges that contain water or upon adjoining shorelines; or (3) The vessel is equipped to connect graywater from smaller vessels are (c) Contain an oil content above 15 to shore-based power and such systems prohibited. Welldeck discharges ppm as measured by EPA Method 1664 are compatible with the available shore containing washdown from gas turbine or other appropriate method for power. engines are prohibited within three determination of oil content as accepted (f) Maintenance of all piping and nautical miles of the United States and by the International Maritime seawater cooling systems must meet the shall be discharged seaward of waters Organization (IMO) (e.g., ISO Method requirements of § 1700.32 (Seawater subject to UNDS when possible. 9377) or U.S. Coast Guard; or Piping Biofouling Prevention). For all Welldeck discharges from equipment (d) Otherwise are harmful to the vessels, except submarines, fouling and vehicle washdowns must be free public health or welfare of the United organisms removed during maintenance from garbage and must not contain oil States. shall not be discharged. in quantities that:

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(a) Cause a film or sheen upon or (2) Any instance of an exception and and National Aeronautics and Space discoloration of the surface of the water the associated recordkeeping Administration (NASA). or adjoining shorelines; or requirements as specified in § 1700.39; ACTION: Proposed rule. (b) Cause a sludge or emulsion to be and deposited beneath the surface of the (3) Any instance of non-compliance SUMMARY: DoD, GSA, and NASA are water or upon adjoining shorelines; or with any of the performance standards proposing to amend the Federal (c) Contain an oil content above 15 as specified in §§ 1700.14–1700.38. The Acquisition Regulation (FAR) to ppm as measured by EPA Method 1664 information recorded shall include the implement revisions made by the Small or other appropriate method for following: Business Administration (SBA) to its determination of oil content as accepted (i) Description of any non-compliance regulations implementing section 8(a) of by the International Maritime and its cause; the Small Business Act, and to provide Organization (IMO) (e.g., ISO Method (ii) Date of non-compliance; additional FAR coverage regarding 9377) or U.S. Coast Guard; or (iii) Period of non-compliance (time protesting an 8(a) participant’s (d) Otherwise are harmful to the and duration); eligibility or size status, procedures for public health or welfare of the United (iv) Location of the vessel during non- releasing a requirement for non-8(a) States. compliance; procurements, and the ways a (v) Corrective action taken; participant could exit the 8(a) Business § 1700.39 Exceptions. (vi) Steps taken or planned to reduce, Development program. (a) Notwithstanding each of the MPCD eliminate, and prevent non-compliance DATES: Interested parties should submit performance standards established in in the future; and written comments to the Regulatory this Part, a vessel of the Armed Forces (vii) If the non-compliance has not Secretariat at one of the addressees is authorized to discharge, into waters been corrected, an estimate of the time shown below on or before April 4, 2014 subject to UNDS, when the person in the non-compliance is expected to to be considered in the formation of the charge (PIC) or their designated continue. final rule. representative determines that such (c) All records prepared under this discharge is necessary to prevent loss of section must be maintained for a period ADDRESSES: Submit comments in life, personal injury, vessel of five years from the date they are response to FAR Case 2012–022 by any created. The information in this of the following methods: endangerment, or severe damage to the • vessel. paragraph will be available to EPA, Regulations.gov: http:// (b) A vessel of the Armed Forces must states, or the U.S. Coast Guard upon www.regulations.gov. Submit comments maintain the following records for all request. Any information made via the Federal eRulemaking portal by discharges under paragraph (a) of this available upon request shall be searching for ‘‘FAR Case 2012–022.’’ section: appropriately classified, as applicable, Select the link ‘‘Comment Now’’ that (1) Name and title of the PIC who and handled in accordance with corresponds with ‘‘FAR Case 2012–022’’ determined the necessity of the applicable legal requirements regarding and follow the instructions provided at discharge; national security. the screen. Please include your name, (2) Date, location, and estimated company name (if any), and ‘‘FAR Case volume of the discharge; § 1700.42 Non-compliance reports. 2012–022’’ on your attached document. (3) Explanation of the reason the The person in charge (PIC) must • Fax: 202–501–4067. discharge occurred; and report any non-compliance, including • Mail: General Services (4) Actions taken to avoid, minimize, the information as required under Administration, Regulatory Secretariat or otherwise mitigate the discharge. § 1700.41, to the Armed Service’s (MVCB), ATTN: Hada Flowers, 1800 F (c) All records prepared under designated office in writing and/or Street NW., 2nd Floor, Washington, DC paragraph (b) of this section must be electronically within five days of the 20405. maintained in accordance with time the PIC becomes aware of the Instructions: Please submit comments § 1700.41. circumstances. only and cite FAR Case 2012–022, in all [FR Doc. 2014–01370 Filed 1–31–14; 8:45 am] correspondence related to this case. All § 1700.40 Commingling of discharges. BILLING CODE 6560–50–P comments received will be posted If two or more regulated discharge without change to http:// streams are combined into one, the www.regulations.gov, including any resulting discharge stream must meet DEPARTMENT OF DEFENSE personal and/or business confidential the requirements applicable to all information provided. discharge streams that are combined GENERAL SERVICES FOR FURTHER INFORMATION CONTACT: Mr. prior to discharge. ADMINISTRATION Karlos Morgan, Procurement Analyst, at § 1700.41 Records. 202–501–2364, for clarification of NATIONAL AERONAUTICS AND (a) All records shall be generated and content. For information pertaining to SPACE ADMINISTRATION maintained in the ship’s logs (main, status or publication schedules, contact engineering, and/or damage control) or the Regulatory Secretariat at 202–501– 48 CFR Parts 5, 6, 18, 19, and 52 an UNDS Record Book and shall include 4755. Please cite FAR Case 2012–022. the following information: [FAR Case 2012–022; Docket 2012–0022; SUPPLEMENTARY INFORMATION: (1) Vessel owner information (e.g., Sequence 1] I. Background U.S. Navy, U.S. Coast Guard); RIN 9000–AM68 (2) Vessel name and class; and DoD, GSA, and NASA are proposing (3) Name of the PIC. Federal Acquisition Regulation; to amend the FAR to implement (b) The PIC shall maintain complete Contracts Under the Small Business changes made in the SBA’s final rule records of the following information: Administration 8(a) Program that was published in the Federal (1) Any inspection or recordkeeping Register at 76 FR 8222 on February 11, requirement as specified in §§ 1700.14– AGENCY: Department of Defense (DoD), 2011, and SBA’s subsequent technical 1700.38; General Services Administration (GSA), amendment that was published in the

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Federal Register at 77 FR 28237 on May that, for acquisitions exceeding the contract and discusses SBA’s eligibility 14, 2012, which made changes to the simplified acquisition threshold, if SBA determination process. regulations governing the section 8(a) does not respond to an offering letter 3. FAR 19.805–2(b)(1) proposed Business Development program within 10 working days, the contracting revisions include deleting the text in (commonly referred to as the ‘‘8(a) office may seek acceptance through paragraph (b)(1) and adds a new Program’’). SBA’s Associate Administrator for paragraph (b)(1)(i) and (b)(1)(ii). FAR Business Development. The contracting 19.805–2(b)(1)(i) proposes to clarify that II. Discussion and Analysis office may assume that SBA has if SBA determines that the apparent This rule proposes to make a number accepted the requirement identified in successful offeror is ineligible, the of changes to regulations governing the its offering letter into the 8(a) Program, contracting office must send to SBA the 8(a) Program. While many of the if a reply from the SBA Associate identity of the next highest evaluated changes are editorial and provide minor Administrator for Business firm for an eligibility determination. clarifications, other substantive changes Development is not received within five The process is repeated until SBA are made, including situations in which business days of receipt of the determines that an identified offeror is an agency may or may not take credit contracting agency’s request. eligible for award. FAR 19.805– towards its small business goals. (ii) FAR 19.804–3(a)(2) proposed 2(b)(1)(ii) includes language to advise This rule also proposes to include revision advises contracting officers that if the contracting office believes new FAR sections 19.813 to address that, for acquisitions not exceeding the that the apparent successful offeror (or protesting an 8(a) participant’s simplified acquisition threshold, if SBA the offeror SBA has determined eligible eligibility or size status, FAR 19.814 to does not respond to an offering letter for award) is not responsible to perform address procedures for requesting a within 2 working days, the contracting the contract, the contracting office must formal size determination, FAR 19.815 officer may assume the offer is accepted refer the matter to SBA for Certificate of to address procedures for releasing a and proceed with award of an 8(a) Competency consideration. requirement for non-8(a) procurement, contract. 4. FAR 19.805–2(c) proposed and FAR 19.816 on ways a participant (iii) FAR 19.804–3(c) proposes to add revisions are minor clarifications. could exit the program. new language for 8(a) sole source H. FAR 19.808–1 proposed revisions The following is a summary of the awards. The proposed language advises are minor clarifications and adds a new proposed FAR revisions associated with contracting officers that SBA will either paragraph (d) and (e). this rule: work with the contracting officer to 1. FAR 19.808–1(d) proposes to clarify A. FAR 5.205, FAR 6.204, and FAR select an 8(a) participant for a possible that an 8(a) participant must represent 18.114 proposed revisions include the award, or determine whether an that it is a small business in accordance removal of the term 8(a) concerns, 8(a) appropriate match exists by matching with the size standard corresponding to contractors, and 8(a) firms, as requirements consistent with the 8(a) the NAICS code assigned to the applicable, and replacing it with 8(a) participants’ capability, where the contract. participants to reflect the accurate contracting officer nominates the 8(a) 2. FAR 19.808–1(e) proposes to terminology used in SBA regulations. participant. implement changes made to SBA’s B. FAR 19.000 proposes to remove the 3. FAR 19.804–4 and 19.804–5 regulations at 13 CFR 124.109(a), 13 term ‘‘business development.’’ proposed revisions are minor technical CFR 124.109(c)(3)(ii), 13 CFR C. FAR 19.800 proposed revisions clarifications. 124.110(e), and 13 CFR 124.111(d). The include new language to clarify that the 4. FAR 19.804–6 proposes to make the new language advises contracting 8(a) Business Development Program, is following revisions— officers that an 8(a) participant owned commonly referred to as the ‘‘8(a) (i) Revise FAR paragraph 19.804–6(a) by an Alaska Native Corporation, Indian program’’, and that a small business that to advise contracting officers that Tribe, Native Hawaiian Organization, or is accepted into the 8(a) program is separate offering and acceptance are not Community Development Corporation, known as a ‘‘participant’’. The section required for indefinite delivery may not receive a sole source, follow-on further proposes to clarify that an 8(a) contracts that have been set-aside for 8(a) contract, if the predecessor contract contractor is an 8(a) participant that is exclusive 8(a) competition, and also was performed by another participant currently performing on a Federal includes minor technical clarifications. owned by the same Alaska Native contract or order that was reserved for (ii) Includes language concerning an Corporation, Indian Tribe, Native 8(a) participants. 8(a) contractor’s acceptance of new Hawaiian Organization, or Community D. FAR 19.802 proposes to revise the orders after the 8(a) contractor has left Development Corporation. title of the section from ‘‘Selecting the program. I. FAR 19.808–2 and 19.809 proposed concerns for the 8(a) Program,’’ to (iii) Clarify that agencies may still revisions are minor technical ‘‘Determining eligibility for the 8(a) continue to take small disadvantaged clarifications. program’’, and adds the location in SBA business (SDB) credit even after the J. FAR 19.810 proposes to revise the regulations where the eligibility contractor has left the 8(a) Program, title from ‘‘SBA appeals’’, to ‘‘SBA requirements for participation in the unless the contractor has re-represented appeals of a contracting officer’s 8(a) program can be found. that it is other than small. decision to the agency head’’, and E. FAR 19.803 proposed revisions are G. FAR 19.805 proposed revisions makes minor technical clarifications. minor technical clarifications. include the following: K. FAR 19.811 and 19.812 proposed F. FAR 19.804 propose the following 1. FAR 19.805–1 proposed revisions revisions are minor technical revisions: are minor technical clarifications. clarifications. 1. Minor revisions to FAR 19.804–1 2. FAR 19.805–2(b) proposed L. Proposed new FAR section, FAR and 19.804–2 revisions include the requirement that 19.813, Protesting an 8(a) Participant’s 2. Restructuring FAR 19.804–3 to add an 8(a) participant must represent that eligibility or size status, adds language proposed new paragraph(s) 19.804– it is a small business in accordance with to clarify that the eligibility of an 8(a) 3(a)(1), (a)(2), and 19.804–3(c). the size standard corresponding to the participant for a sole source or (i) FAR 19.804–3(a)(1) proposed North American Industry Classification competitive 8(a) requirement may not be revision advises contracting officers System (NAICS) code assigned to the challenged. However, a successful

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offeror’s size status for a competitive regulatory action and, therefore, was not concerning the existing regulations in 8(a) award may be protested by any subject to review under section 6(b) of subparts affected by this rule in offeror whom the contracting officer has E.O. 12866, Regulatory Planning and accordance with 5 U.S.C. 610. Interested not eliminated for reasons unrelated to Review, dated September 30, 1993. This parties must submit such comments size, the contracting officer or SBA. rule is not a major rule under 5 U.S.C. separately and should cite 5 U.S.C. 610 M. Proposed new FAR section, FAR 804. (FAR Case 2012–022) in 19.814, Requesting a formal size correspondence. determination (8(a) sole source IV. Regulatory Flexibility Act requirements), is added to clarify that if The Department of Defense (DoD), the V. Paperwork Reduction Act the size of an 8(a) participant nominated General Services Administration (GSA), The proposed rule does not contain for award of an 8(a) sole source contract and the National Aeronautics and Space any information collection requirements is called into question, a formal size Administration (NASA) do not expect that require the approval of the Office of determination may be requested. this proposed rule to have a significant Management and Budget under the N. Proposed new FAR section, FAR economic impact on a substantial Paperwork Reduction Act (44 U.S.C. 19.815, Release for non-8(a) number of small entities within the chapter 35). procurement is added to provide the meaning of the Regulatory Flexibility List of Subjects in 48 CFR Parts 5, 6, 18, procedures for obtaining SBA’s consent Act,5 U.S.C. 601, et seq., because these 19, and 52 to release an 8(a) requirement for non- changes do not place any new 8(a) procurement, and a brief discussion requirements on small business. The Government procurement. of the matters that will be taken into purpose of this rule is to implement Dated: January 23, 2014. consideration in order to reach a changes made in SBA’s final rule, William Clark, decision as to whether or not releasing published in the Federal Register at 76 Acting Director, Office of Government-wide a requirement for non-8(a) procurement FR 8222 on February 11, 2011 Acquisition Policy, Office of Acquisition is in the best interest of the agency, and pertaining to the 8(a) Business Policy, Office of Government-wide Policy. the business development program. Development Program and to clarify O. Proposed new FAR section, FAR Therefore, DoD, GSA, and NASA existing guidance in the FAR. propose amending 48 CFR parts 5, 6, 18, 19.816, Exiting the 8(a) Program, adds The Initial Regulatory Flexibility 19 and 52 as set forth below: language to advise contracting officers Analysis (IRFA) is summarized as ■ that— follows: 1. The authority citation for 48 CFR 1. When a contractor exits the 8(a) part 5 continues to read as follows: The issues addressed in this proposed rule program, it is no longer eligible to include: (1) clarification of the evaluation, Authority: 40 U.S.C. 121(c); 10 U.S.C. receive new 8(a) contracts. However, the offering, and acceptance process; (2) chapter 137; and 51 U.S.C. 20113. contractor remains under contractual procedures for acquiring SBA’s consent to obligation to complete existing release an 8(a) requirement outside the 8(a) PART 5—PUBLICIZING CONTRACT contracts, and any priced options that program; and (3) clarification that it is the ACTIONS may be exercised. contracting officer’s responsibility to ■ 2. Amend section 5.205 by revising determine that the potential 8(a) contractor 2. If an 8(a) contractor is suspended paragraph (f) to read as follows: from the program it may not receive any meets the applicable performance of work new 8(a) contracts unless the head of requirements at time of award, and the 5.205 Special situations. impact of exiting the 8(a) program in terms the contracting agency (or designee) of the firm’s ability to receive future 8(a) * * * * * makes a determination that it is in the requirements and its current contractual (f) Section 8(a) competitive best interest of the Government to issue commitments. These revisions do not place acquisition. When a national buy the award and SBA adopts that any new requirements, financial or requirement is being considered for determination. otherwise, on small entities, and serve competitive acquisition limited to 3. A contractor that has completed its mainly to provide more explicit guidance to eligible 8(a) participants under subpart term of participation in the 8(a) program Federal contracting officials. Currently, the 19.8, the contracting officer must may be awarded a competitive 8(a) 8(a) Program has approximately 8,567 transmit a synopsis of the proposed contract if it was an 8(a) participant participants. These participants may or may not be economically impacted by the changes contract action to the GPE. The synopsis eligible for award of the contract on the discussed in this proposed rule. may be transmitted to the GPE initial date specified for receipt of offers This proposed rule will not impose any concurrent with submission of the contained in the contract solicitation, new information collections requirements on agency offering (see 19.804–2) to the and if the contractor continues to meet small businesses. Small Business Administration (SBA). all other applicable eligibility criteria. The rule does not duplicate, overlap, or The synopsis should also include conflict with any other Federal rules. III. Executive Orders 12866 and 13563 information— There are no alternative approaches that (1) Advising that the acquisition is Executive Orders (E.O.s) 12866 and will accomplish the stated objectives of the being offered for competition limited to rule. 13563 direct agencies to assess all costs eligible 8(a) participants; and benefits of available regulatory The Regulatory Secretariat has (2) Specifying the North American alternatives and, if regulation is submitted a copy of the IRFA to the Industry Classification System (NAICS) necessary, to select regulatory Chief Counsel for Advocacy of the Small code; approaches that maximize net benefits Business Administration. A copy of the (3) Advising that eligibility to (including potential economic, IRFA may be obtained from the participate may be restricted to 8(a) environmental, public health and safety Regulatory Secretariat. DoD, GSA, and participants in either the developmental effects, distributive impacts, and NASA invite comments from small stage or the developmental and equity). E.O. 13563 emphasizes the business concerns and other interested transitional stages; and importance of quantifying both costs parties on the expected impact of this (4) Encouraging interested 8(a) and benefits, of reducing costs, of rule on small entities. participants to request a copy of the harmonizing rules, and of promoting DoD, GSA, and NASA will also solicitation as expeditiously as possible flexibility. This is not a significant consider comments from small entities since the solicitation will be issued

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without further notice upon SBA performing those contracts to firms identify acquisitions to support the acceptance of the requirement for the eligible for program participation. This participant’s business plans. In these section 8(a) program. program is the ‘‘8(a) Business instances, the SBA will provide at Development Program’’, commonly minimum the following information in PART 6—COMPETITION referred to as the ‘‘8(a) program’’. A order to enable the contracting activity REQUIREMENTS small business that is accepted into the to match an acquisition to the ■ 3. The authority citation for 48 CFR 8(a) program is known as a participant’s capabilities: part 6 is revised to read as follows: ‘‘participant’’. SBA’s subcontractors are (1) Identification of the concern and referred to as ‘‘8(a) contractors’’. As its owners. Authority: 40 U.S.C. 121(c); 10 U.S.C. used in this subpart, an 8(a) contractor (2) Background information on the chapter 137; and 51 U.S.C. 20113. is an 8(a) participant that is currently concern, including any and all ■ 4. Revise section 6.204 to read as performing on a Federal contract or information pertaining to the concern’s follows: order that was reserved for 8(a) technical ability and capacity to 6.204 Section 8(a) competition. participants. perform. (b) Contracts may be awarded to the (a) To fulfill statutory requirements (3) The participant’s present SBA for performance by eligible 8(a) relating to section 8(a) of the Small production capacity and related participants on either a sole source or Business Act, as amended by Public facilities. competitive basis. Law 100–656, contracting officers may (4) The extent to which contracting (c) Acting under the authority of the limit competition to eligible 8(a) assistance is needed in the present and program, the SBA certifies to an agency participants (see Subpart 19.8). the future, described in terms that will that the SBA is competent and (b) No separate justification or enable the agency to relate the concern’s responsible to perform a specific determination and findings is required plans to present and future agency contract. The contracting officer has the under this part to limit competition to requirements. discretion, to award the contract to the eligible 8(a) participants. (But see (5) If construction is involved, the SBA based upon mutually agreeable 6.302–5 and 6.303–1 for sole-source 8(a) request shall also include the following: terms and conditions. awards over $20 million.) (i) A participant’s capabilities in and (d) The contracting officer shall qualifications for accomplishing various PART 18—EMERGENCY comply with 19.203 before deciding to categories of construction work ACQUISITIONS offer an acquisition to a small business typically found in North American concern under the 8(a) program. For Industrial Category System subsector ■ 5. The authority citation for 48 CFR acquisitions above the simplified 236 (construction of buildings), part 18 continues to read as follows: acquisition threshold, the contracting subsector 237 (heavy and civil Authority: 40 U.S.C. 121(c); 10 U.S.C. officer shall consider 8(a) set-asides or engineering construction), or subsector chapter 137; and 51 U.S.C. 20113. sole source awards before considering 238 (specialty trade contractors. small business set-asides. (ii) The participant’s capacity in each 18.114 [Amended] (e) When SBA has delegated its 8(a) construction category in terms of ■ 6. Amend section 18.114 by removing program contract execution authority to estimated dollar value (e.g., electrical, ‘‘firms’’ and adding ‘‘participants’’ in its an agency, the contracting officer must up to $100,000). place. refer to its agency supplement or other (b) The SBA identifies a specific policy directives for appropriate requirement for one or more 8(a) PART 19—SMALL BUSINESS guidance. PROGRAMS participant(s) and sends a requirements ■ 11. Revise section 19.802 to read as letter to the agency’s small business ■ 7. The authority citation for 48 CFR follows: office, requesting the contracting office part 19 continues to read as follows: 19.802 Determining eligibility for the 8(a) offer the acquisition to the 8(a) program. Authority: 40 U.S.C. 121(c); 10 U.S.C. program. In these instances, in addition to the chapter 137; and 51 U.S.C. 20113. Determining the eligibility of a small information in paragraph (a) of this section, the SBA will provide— 19.000 [Amended] a business to be a participant in the 8(a) program is the responsibility of the (1) A clear identification of the ■ 8. Amend section 19.000 by removing SBA. SBA’s regulations on eligibility acquisition sought; e.g., project name or from paragraph (a)(3) ‘‘business requirements for participation in the number; development’’. 8(a) program are found at 13 CFR (2) A statement as to how the required ■ 9. Revise the subpart heading of 19.8 124.101 through 124.112. equipment and real property will be to read as follows: ■ 12. Revise section 19.803 to read as provided in order to ensure that the follows: participant will be fully capable of Subpart 19.8—Contracting With the satisfying the agency’s requirements; Small Business Administration (The 19.803 Selecting acquisitions for the 8(a) (3) If construction, information as to 8(a) Program) program. the bonding capability of the * * * * * Through their cooperative efforts, the participant(s); and ■ 10. Revise section 19.800 to read as SBA and an agency match the agency’s (4) Either— follows: requirements with the capabilities of (i) If a sole source request— 8(a) participants to establish a basis for (A) The reasons why the participant is 19.800 General. the agency to contract with the SBA considered suitable for this particular (a) Section 8(a) of the Small Business under the program. Selection is initiated acquisition; e.g., previous contracts for Act (15 U.S.C. 637(a)) established a in one of three ways— the same or similar supply or service; program that authorizes the Small (a) The SBA advises the contracting and Business Administration (SBA) to enter activity of an 8(a) participant’s (B) A statement that the participant is into all types of contracts with other capabilities through a search letter and eligible in terms of its small business agencies and let subcontracts for requests the contracting activity to size status relative to the assigned

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NAICS code, business support levels, considered for commitment to the 8(a) within 2 working days of receipt if the and business activity targets; or program. contract is at or below the simplified (ii) If competitive, a statement that at ■ 14. Amend section 19.804–2 by— acquisition threshold. The contracting least two 8(a) participants are ■ a. Revising the introductory text of office may grant an extension of these considered capable of satisfying the paragraph (a) and paragraph (a)(10); time periods, if requested by SBA. agency’s requirements and a statement ■ b. Redesignating paragraphs (a)(12) (1) For acquisitions exceeding the that the participants are also eligible in through (a)(15) as paragraphs (a)(13) simplified acquisition threshold, if SBA terms of their small business size status through (a)(16), respectively; does not respond to an offering letter relative to the assigned NAICS code, ■ c. Adding a new paragraph (a)(12); within 10 working days, the contracting business support levels, and business ■ d. Removing from the newly office may seek SBA’s acceptance activity targets. If requested by the designated paragraph (a)(13) ‘‘Program’’ through the Associate Administrator for contracting office, SBA will identify at and adding ‘‘program’’ in its place; Business Development. The contracting least two such participants and provide ■ e. Removing from the newly office may assume that SBA has information concerning the participants’ designated paragraph (a)(15) ‘‘sole accepted the requirement into the 8(a) capabilities. source’’ and adding ‘‘sole-source’’ in its program if it does not receive a reply (c) Agencies may also review other place; and from the Associate Administrator for proposed acquisitions for the purpose of ■ f. Removing from paragraph (b)(3) Business Development within five identifying requirements which may be ‘‘firm’’ and adding ‘‘8(a) participant’’ in calendar days of receipt of the offered to the SBA. Where agencies its place (twice). contracting office’s request. independently, or through the self The revised and added text reads as (2) For acquisitions not exceeding the marketing efforts of an 8(a) participant, follows: simplified acquisition threshold, when identify a requirement for the 8(a) the contracting office makes an offer to program, they may offer on behalf of a 19.804–2 Agency offering. the 8(a) program on behalf of a specific specific 8(a) participant, for the 8(a) (a) After completing its evaluation, 8(a) participant and does not receive a program in general, or for 8(a) the contracting office shall notify the reply to its offering letter within 2 competition. SBA of the extent of its plans to place working days, the contracting office may ■ 13. Revise section 19.804–1 to read as 8(a) contracts with the SBA for specific assume the offer is accepted and follows: quantities of items or work. The proceed with award of an 8(a) contract. notification, referred to as an offering (b) As part of the acceptance process, 19.804–1 Agency evaluation. letter, shall identify the time frames SBA will review the appropriateness of In determining the extent to which a within which prime contract and the NAICS code designation assigned to requirement should be offered in subcontract actions must be completed the requirement by the contracting support of the 8(a) program, the agency in order for the agency to meet its officer. should evaluate— responsibilities. The offering letter shall (1) SBA will not challenge the NAICS (a) Current and future plans to acquire also contain the following information code assigned to the requirement by the the specific items or work that 8(a) applicable to each prospective contract: contracting officer if it is reasonable, even though other NAICS codes may participants are seeking to provide, * * * * * also be reasonable. identified in terms of— (10) Identification of any particular (1) Estimated quantities of the (2) If SBA and the contracting officer 8(a) participant designated for supplies or services required or the are unable to agree on a NAICS code consideration, including a brief estimated number of construction designation for the requirement, SBA justification, such as— projects planned; and may refuse to accept the requirement for (i) The 8(a) participant, through its (2) Performance or delivery the 8(a) program, appeal the contracting own efforts, marketed the requirement requirements, including— officer’s determination to the head of (i) Required monthly production and caused it to be reserved for the 8(a) the agency pursuant to 19.810, or appeal rates, when applicable; and program; or the NAICS code designation to the SBA (ii) For construction, geographical (ii) The acquisition is a follow-on or Office of Hearings and Appeals under location; renewal contract and the nominated 8(a) Subpart C of 13 CFR Part 134. (b) The impact of any delay in participant concern is the incumbent. (c) Sole-source 8(a) awards. If an delivery; * * * * * appropriate match exists, SBA will (c) Whether the items or work have (12) Identification of all 8(a) advise the contracting officer whether it previously been acquired using small participants which have expressed an will participate in contract negotiations business set-asides, and the date the interest in being considered for the or whether SBA will authorize the items or work were acquired; acquisition. contracting officer to negotiate directly (d) Problems encountered in previous * * * * * with the identified 8(a) participant. acquisitions of the items or work from ■ 15. Revise section 19.804–3 to read as Where SBA has delegated its contract the 8(a) participants or other follows: execution functions to a contracting contractors; and agency, SBA will also identify that (e) Any other pertinent information 19.804–3 SBA acceptance. delegation in its acceptance letter. about known 8(a) participants, the (a) Upon receipt of the contracting (1) Sole-source award where the items, or the work. This includes any office’s offering letter, SBA will contracting officer nominates a specific information concerning the participants’ determine whether to accept the 8(a) participant. SBA will determine products or capabilities. When requirement for the 8(a) program. SBA’s whether an appropriate match exists necessary, the contracting agency shall decision whether to accept the where the contracting officer identifies make an independent review of the requirement will be transmitted to the a particular participant for a sole-source factors in 19.803(a) and other aspects of contracting office in writing within 10 award. the participants’ capabilities which working days of receipt of the offer if (i) Once SBA determines that a would ensure the satisfactory the contract is likely to exceed the procurement is suitable to be accepted performance of the requirement being simplified acquisition threshold and as an 8(a) sole-source contract, SBA will

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normally accept it on behalf of the 8(a) multiple award contracts (including the a contracting office’s request for a participant recommended by the Federal Supply Schedules managed by competitive 8(a) award below the contracting officer, provided that 8(a) GSA, multi-agency contracts or competitive thresholds. Such requests participant complies with the Government-wide acquisition contracts, will be approved only on a limited basis requirements of 13 CFR 124.503(c)(1). or indefinite-delivery, indefinite- and will be primarily granted where (ii) If an appropriate match does not quantity (IDIQ) contracts) that have been technical competitions are appropriate exist, SBA will notify the 8(a) set aside for exclusive competition or where a large number of responsible participant and the contracting officer, among 8(a) contractors. SBA’s 8(a) participants are available for and may then nominate an alternate 8(a) acceptance of the original contract is competition. In determining whether a participant. valid for the term of the contract. request to compete below the threshold (2) Sole-source award where the (b) An 8(a) contractor may continue to will be approved, the SBA Associate contracting officer does not nominate a accept new orders under the contract, Administrator for Business specific 8(a) participant. When a even if it exits the 8(a) program, or Development will, in part, consider the contracting officer does not nominate as becomes other than small for the NAICS extent to which the contracting activity 8(a) participant for performance of a code assigned to the contract. is supporting the 8(a) program on a sole-source 8(a) contract, SBA will (c) Agencies may continue to take noncompetitive basis. The agency may select an 8(a) participant for possible credit toward their prime contracting include recommendations for award from among two or more eligible small disadvantaged business or small competition below the threshold in the and qualified 8(a) participants. The business goals for orders awarded to 8(a) offering letter or by separate selection will be based upon relevant participants, even after the contractor’s correspondence to the SBA Associate factors, including business development 8(a) program term expires, the Administrator for Business needs, compliance with competitive contractor otherwise exits the 8(a) Development. business mix requirements (if program, or the contractor becomes ■ 20. Revise section 19.805–2 to read as applicable), financial condition, other than small for the NAICS code follows: management ability, technical assigned under the 8(a) contract. 19.805–2 Procedures. capability, and whether award will However, if an 8(a) contractor promote the equitable distribution of rerepresents that it is other than small (a) Offers shall be solicited from those 8(a) contracts. (For construction for the NAICS code assigned under the sources identified in accordance with requirements see 13 CFR 124.503(d)(1)). contract in accordance with 19.301–2 19.804–3. (b) The SBA will determine the ■ 16. Amend section 19.804–4 by— or, where ownership or control of the eligibility of the participants for award ■ a. Removing from the introductory 8(a) contractor has changed and SBA of the contract. Eligibility will be text ‘‘Program’’ and adding ‘‘program’’ has granted a waiver to allow the determined by the SBA as of the time of in its place; contractor to continue performance (see submission of initial offers which ■ b. Revising paragraph (b); and 13 CFR 124.515), the agency may not ■ include price. Eligibility is based on c. Removing from paragraph (d) credit any subsequent orders awarded to Section 8(a) program criteria. An 8(a) ‘‘Program’’ and adding ‘‘program’’ in its the contractor towards its small participant must represent that it is a place. disadvantaged business or small small business in accordance with the The revised text reads as follows: business goals. size standard corresponding to the 19.804–4 Repetitive acquisitions. ■ 19. Amend section 19.805–1 by— ■ NAICS code assigned to the contract. * * * * * a. Revising the introductory text of (1) In either negotiated or sealed bid (b) A nominated 8(a) participant’s paragraph (a); ■ competitive 8(a) acquisitions SBA will eligibility, and whether or not it is the b. Removing from paragraph (a)(1) determine the eligibility of the apparent same 8(a) participant that performed the ‘‘firms’’ and adding ‘‘participants’’ in its successful offeror and advise the previous contract; place; and contracting office within 5 working days ■ c. Revising the introductory text of * * * * * after receipt of the contracting office’s ■ paragraph (b); 17. Amend section 19.804–5 by ■ request for an eligibility determination. d. Removing from paragraph (b)(1) (i) If SBA determines that the revising paragraphs (a) and (c) to read as ‘‘firms’’ and adding ‘‘participants’’ in its follows: apparent successful offeror is ineligible, place the contracting office will then send to ■ 19.804–5 Basic ordering agreements. e. Revising paragraph (d). SBA the identity of the next highest (a) The contracting office shall submit The revisions read as follows: evaluated firm for an eligibility an offering letter for, and SBA must 19.805–1 General. determination. The process is repeated accept, each order under a basic (a) Except as provided in paragraph until SBA determines that an identified ordering agreement (BOA) in addition to (b) of this subsection, an acquisition offeror is eligible for award. SBA offering and accepting the BOA itself. offered to the SBA under the 8(a) determines whether a participant is * * * * * program shall be awarded on the basis eligible for a specific 8(a) competitive (c) Once an 8(a) contractor’s program of competition limited to eligible 8(a) requirement as of the date that the 8(a) term expires, the contractor otherwise participants when— participant submitted its initial offer exits the 8(a) program, or becomes other which includes price. * * * * * than small for the NAICS code assigned (ii) If the contracting office believes (b) Where an acquisition exceeds the under the BOA, SBA will not accept that the apparent successful offeror (or competitive threshold as defined in new orders for the contractor. the offeror SBA has determined eligible ■ 18. Revise section 19.804–6 to read as paragraph (a)(2) of this section, the SBA for award) is not responsible to perform follows: may accept the requirement for a sole- the contract, the contracting office must source 8(a) award if— refer the matter to SBA for Certificate of 19.804–6 Indefinite delivery contracts. * * * * * Competency consideration under 19.6. (a) Separate offers and acceptances are (d) The SBA Associate Administrator (2) In any case in which a 8(a) not required for individual orders under for Business Development may approve participant is determined to be

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ineligible, SBA will notify the 8(a) ■ c. Removing from paragraph (a)(3) (d) An 8(a) contract, whether in the participant of that determination. ‘‘activity’s’’ and adding ‘‘officer’s’’ in its base or an option year, must be (c) Any party with information place; terminated for convenience if the 8(a) concerning questioning the eligibility of ■ d. Revising paragraph (b); and contractor to which it was awarded an 8(a) participant to continue ■ e. Removing from paragraph (c) transfers ownership or control of the participation in the 8(a) program or for ‘‘firm’’ and adding ‘‘participant’’ in its firm or if the contract is transferred or the purposes of a specific 8(a) award place. novated for any reason to another firm, may submit such information to the The revisions read as follows: unless the Administrator of the SBA SBA in accordance with 13 CFR 19.810 SBA appeals of a contracting waives the requirement for contract 124.112(c). officer’s decision to the agency head. termination (13 CFR 124.515). The ■ 21. Amend section 19.808–1 by Administrator may waive the removing from paragraph (c) ‘‘activity’’ * * * * * (b) Notification of an intent to appeal termination requirement only if certain and adding ‘‘officer’’ in its place; and to the agency head by SBA must be conditions exist. Moreover, a waiver of adding paragraphs (d) and (e) to read as received by the contracting officer the requirement for termination is follows. within 5 working days after SBA is permitted only if the 8(a) contractor’s 19.808–1 Sole source. formally notified of the contracting request for waiver is made to the SBA prior to the actual relinquishment of * * * * * officer’s decision. SBA’s Administrator will provide a copy of this notification ownership or control, except in the case (d) An 8(a) participant must represent of death or incapacity where the waiver that it is a small business in accordance of the intent to appeal to the contracting agency Director for Small and must be submitted within 60 calendar with the size standard corresponding to days after such an occurrence. The the NAICS code assigned to the Disadvantaged Business Utilization or, for the Department of Defense, the clauses in the contract entitled ‘‘Special contract. 8(a) Contract Conditions’’ and ‘‘Special (e) An 8(a) participant owned by an Director of Small Business Programs, 8(a) Subcontract Conditions’’ require the ANC, Indian Tribe, Native Hawaiian SBA must send the written appeal to the SBA and the 8(a) subcontractor to notify Organization, or Community agency head within 15 working days of the contracting officer when ownership Development Corporation may not SBA’s notification of intent to appeal or of the firm is being transferred. When receive an 8(a) sole-source award that is the appeal may be considered the contracting officer receives a follow-on contract to an 8(a) contract, withdrawn. Pending issuance of a information that an 8(a) contractor is if the predecessor contract was decision by the agency head, the planning to transfer ownership or performed by another 8(a) participant contracting officer shall suspend action control to another firm, the contracting (or former 8(a) participant) owned by on the acquisition. The contracting officer shall take action immediately to the same ANC, Indian Tribe, Native officer need not suspend action on the preserve the option of waiving the Hawaiian Organization, or Community acquisition if the contracting officer termination requirement. The Development Corporation (See 13 CFR makes a written determination that contracting officer shall determine the 124.109–124.111). urgent and compelling circumstances ■ 22. Revise section 19.808–2 to read as that significantly affect the interests of timing of the proposed transfer and its follows. the United States will not permit effect on contract performance and waiting for a decision. mission support. If the contracting 19.808–2 Competitive. officer determines that the SBA does not * * * * * intend to waive the termination In competitive 8(a) acquisitions ■ 25. Amend section 19.811–1 by subject to Part 15, the contracting officer revising the introductory text of requirement, and termination of the conducts negotiations directly with the paragraph (b) to read as follows: contract would severely impair competing 8(a) participants. Conducting attainment of the agency’s program competitive negotiations among 8(a) 19.811–1 Sole source. objectives or mission, the contracting participants prior to SBA’s formal * * * * * officer shall immediately notify the SBA acceptance of the acquisition for the 8(a) (b) The contracting officer shall in writing that the agency is requesting program may be grounds for SBA’s not prepare the contract that the SBA will a waiver. Within 15 business days accepting the acquisition for the 8(a) award to the 8(a) contractor in thereafter, or such longer period as program. accordance with agency procedures, as agreed to by the agency and the SBA, ■ 23. Revise section 19.809 to read as if awarding the contract directly to the the agency head must either confirm or follows. 8(a) contractor, except for the following: withdraw the request for waiver. Unless * * * * * a waiver is approved by the SBA, the 19.809 Preaward considerations. contracting officer must terminate the The contracting officer should request 19.811–3 [Amended] contract for convenience upon receipt of a preaward survey of the 8(a) participant ■ 26. Amend section 19.811–3 by— a written request by the SBA. This whenever considered useful. If the ■ a. Removing from the introductory requirement for a convenience results of the preaward survey or other text of paragraph (d) ‘‘Concerns’’ and termination does not affect the information available to the contracting adding ‘‘Participants’’ in its place; and Government’s right to terminate for officer raise substantial doubt as to the ■ b. Removing from paragraphs (d)(1) default if the cause for termination of an participant’s ability to perform, the and (e) ‘‘concerns’’ and adding 8(a) contract is other than the transfer of contracting officer must refer the matter ‘‘participants’’ in its place, respectively. ownership or control. to SBA for Certificate of Competency ■ 27. Amend section 19.812 by ■ 28. Add sections 19.813 through consideration under Subpart 19.6. removing from paragraph (b) ‘‘firm’’ and 19.816 to read as follows: ■ 24. Amend section 19.810 by— adding ‘‘8(a) contractor’’ in its place; ■ a. Revising the section heading; and revising paragraph (d) to read as 19.813 Protesting an 8(a) Participant’s ■ b. Removing from paragraph (a)(2) follows: eligibility or size status. ‘‘firm’’ and ‘‘Program’’ and adding (a) The eligibility of an 8(a) ‘‘participant’’ and ‘‘program’’ in its 19.812 Contract administration. participant for a sole-source or place, respectively; * * * * * competitive 8(a) requirement may not be

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challenged by another 8(a) participant agrees to release the requirement from 124.301 through 124.305, and 13 CFR or any other party, either to SBA or any the 8(a) program in accordance with 13 124.507(d). administrative forum as part of a bid or CFR 124.504(d). ■ 29. Amend section 19.1504 by other contract protest (see 13 CFR (b) To obtain release of a requirement revising paragraph (a) to read as follows: 124.517). for a non-8(a) procurement, the 19.1504 Exclusions. (b) The size status of an 8(a) contracting officer shall make a written participant nominated for an 8(a) sole- request to, and receive concurrence * * * * * source contract may not be protested by from, the SBA Associate Administrator (a) Requirements that an 8(a) another 8(a) participant or any other for Business Development. contractor is currently performing under party. (c)(1) The SBA Associate the 8(a) program or that SBA has (c) The size status of the apparent Administrator for Business accepted for performance under the successful offeror for competitive 8(a) Development will consider the authority of the 8(a) program, unless awards may be protested. The filing of following information when SBA has consented to release the a size status protest is limited to— determining whether to release a requirements from the 8(a) program; (1) Any offeror whom the contracting requirement from the 8(a) program— * * * * * officer has not eliminated for reasons (i) Whether the agency has achieved unrelated to size; its SDB goal; PART 52—SOLICITATION PROVISIONS (2) The contracting officer; or (ii) Whether the agency has not AND CONTRACT CLAUSES (3) The SBA District Director, or achieved its HUBZone, SDVOSB, ■ 30. Amend section 52.212–5 by designee, in either the district office WOSB, or small business goal(s); revising the date of the clause and serving the geographical area in which (iii) Whether the requirement is paragraph (b)(17) to read as follows: the contracting activity is located or the critical to the business development of district office that services the apparent the 8(a) contractor that is currently 52.212–5 Contract Terms and Conditions successful offeror, or the Associate performing the requirement. Required To Implement Statutes or Administrator for Business (2) Generally, a requirement that was Executive Orders—Commercial Items. Development. previously accepted into the 8(a) * * * * * program will only be released for (d) Protests of competitive 8(a) awards Contract Terms and Conditions procurements outside the 8(a) program shall follow the procedures at 19.302. Required To Implement Statutes or when the contracting activity agency For additional information, refer to 13 Executive Orders—Commercial Items agrees to set-aside the requirement CFR 121.1001. (Date) under the small business, HUBZone, 19.814 Requesting a formal size SDVOSB, or WOSB programs. * * * * * determination (8(a) sole source (3) The requirement that a follow-on (b) * * * requirements). procurement must be released from the (17) 52.219–14, Limitations on (a) If the size status of an 8(a) 8(a) program in order for it to be Subcontracting (Date) (15 U.S.C. 637(a)(14)). participant nominated for award of an fulfilled outside the 8(a) program does * * * * * 8(a) sole-source contract is called into not apply to task or delivery orders ■ 31. Amend section 52.219–11 by question, a request for a formal size offered to and accepted into the 8(a) revising the date of the clause and determination may be submitted to SBA program, where the basic contract was paragraph (c) to read as follows: pursuant to 13 CFR 121.1001(b)(2)(ii) not accepted into the 8(a) program. 52.219–11 Special 8(a) Contract by— Conditions. (1) The 8(a) participant nominated for 19.816 Exiting the 8(a) program. award of the particular sole-source (a) When a contractor exits the 8(a) * * * * * contract; program, it is no longer eligible to Special 8(a) Contract Conditions (Date) (2) The contracting officer who has receive new 8(a) contracts. However, the contractor remains under contractual * * * * * been delegated SBA’s 8(a) contract (c) Except for novation agreements, execution functions, where applicable, obligation to complete existing delegate to the ______[insert name of or the SBA program official with contracts, and any priced options that contracting agency] the responsibility for authority to execute the 8(a) contract; or may be exercised. administering the subcontract to be awarded (3) The SBA District Director in the (b) If an 8(a) contractor is suspended hereunder with complete authority to take district office that services the 8(a) from the program (see 13 CFR 124.305), any action on behalf of the Government participant or the Associate it may not receive any new 8(a) under the terms and conditions of the Administrator for Business contracts unless the head of the subcontract; provided, however, that the ______Development. contracting agency (or designee) makes [insert name of contracting agency] shall (b) SBA’s Government Contracting a determination that it is in the best give advance notice to the SBA before it interest of the Government to issue the issues a final notice terminating the right of Area Director or designee will issue a a subcontractor to proceed with further formal size determination within 15 award and SBA adopts that performance, either in whole or in part, business days, if possible, after SBA determination. under the subcontract for default or for the receives the request for a formal size (c) A contractor that has completed its convenience of the Government. determination. term of participation in the 8(a) program * * * * * (c) An appeal from an SBA size may be awarded a competitive 8(a) ■ 32. Amend section 52.219–12 by determination shall follow the contract if it was an 8(a) participant revising the date of the clause and procedures at 19.302. eligible for award of the contract on the removing from paragraph (b)(2) ‘‘and initial date specified for receipt of offers 19.815 Release for non-8(a) procurement. advance payments’’. contained in the contract solicitation, The revision reads as follows: (a) Once a requirement has been and if the contractor continues to meet accepted by SBA into the 8(a) program, all other applicable eligibility criteria. 52.219–12 Special 8(a) Subcontract any follow-on requirements shall (d) SBA’s regulations on exiting the Conditions. remain in the 8(a) program unless SBA 8(a) program are found at 13 CFR * * * * *

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Special 8(a) Subcontract Conditions ■ 34. Amend section 52.219–17 by ■ c. Removing from Alternate I (Date) revising the date of the clause; and ‘‘concerns’’ and adding ‘‘participants’’ * * * * * removing from paragraph (a)(2) ‘‘and in its place. ■ 33. Amend section 52.219–14 by advance payments’’. The revisions read as follows. revising the date of the clause and The revision reads as follows: 52.219–18 Notification of Competition removing from paragraphs (b)(1), (b)(2), 52.219–17 Section 8(a) Award. and (b)(3) ‘‘8(a) concerns’’ and adding Limited to Eligible 8(a) Participants. * * * * * ‘‘8(a) participants’’ in its place. Notification of Competition Limited to The revision reads as follows: Section 8(a) Award (Date) Eligible 8(a) Participants (Date) 52.219–14 Limitations on Subcontracting. * * * * * * * * * * ■ * * * * * 35. Amend section 52.219–18 by: [FR Doc. 2014–01706 Filed 1–31–14; 8:45 am] ■ a. Revising the section and clause BILLING CODE 6820–EP–P Limitations on Subcontracting (Date) heading; * * * * * ■ b. Revising the date of the clause; and

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Notices Federal Register Vol. 79, No. 22

Monday, February 3, 2014

This section of the FEDERAL REGISTER potential persons who are to respond to available. The agency is mandated to contains documents other than rules or the collection of information that such provide supervised credit; therefore, proposed rules that are applicable to the persons are not required to respond to failure to collect the information, or public. Notices of hearings and investigations, the collection of information unless it collecting it less frequently, could result committee meetings, agency decisions and displays a currently valid OMB control in the failure of the farm operation or rulings, delegations of authority, filing of petitions and applications and agency number. loss of agency security property. Description of Respondents: Business statements of organization and functions are Farm Service Agency examples of documents appearing in this or other for-profit; Farms. section. Title: 7 CFR 761, General Program Number of Respondents: 91,830. Administration. Frequency of Responses: Reporting: OMB Control Number: 0560–0238. On occasion; Annually. DEPARTMENT OF AGRICULTURE Summary of Collection: Authority to Total Burden Hours: 248,881. establish the regulatory requirements Ruth Brown, Submission for OMB Review; contained in 7 CFR 761 and 7 CFR 763, is derived from 5 U.S.C. 301 which Departmental Information Collection Comment Request Clearance Officer. provides that ‘‘The Head of an Executive January 28, 2014. department or military department may [FR Doc. 2014–02093 Filed 1–31–14; 8:45 am] The Department of Agriculture has prescribe regulations for the government BILLING CODE 3410–05–P submitted the following information of his department, the distribution and collection requirement(s) to OMB for performance of its business . . .’’ The DEPARTMENT OF AGRICULTURE review and clearance under the Secretary delegated authority to Paperwork Reduction Act of 1995, administer the provisions of the Act Forest Service Public Law 104–13. Comments applicable to the Farm Loan Program regarding (a) whether the collection of (FLP) to the Under Secretary for Farm National Advisory Committee for information is necessary for the proper and Foreign Agricultural Service in Implementation of the National Forest performance of the functions of the section 2.16 of 7 CFR part 2. FLP System Land Management Planning agency, including whether the provides loans to family farmers to Rule information will have practical utility; purchase real estate equipment and (b) the accuracy of the agency’s estimate finance agricultural production. The AGENCY: Forest Service, USDA. of burden including the validity of the regulations covered by this information ACTION: Notice of intent to renew an methodology and assumptions used; (c) collection package describes, the advisory committee. ways to enhance the quality, utility and policies and procedures the agency uses SUMMARY: The Secretary of Agriculture clarity of the information to be to provide supervised credit to direct intends to renew the National Advisory collected; (d) ways to minimize the FLP applicants and borrowers in Committee for Implementation of the burden of the collection of information accordance with the provisions of the National Forest System Land on those who are to respond, including Consolidated Farm and Rural Management Planning Rule through the use of appropriate Development Act (Pub. L. 87–128), as (Committee). In accordance with automated, electronic, mechanical, or amended. provisions of the Federal Advisory other technological collection Need and Use of the Information: Committee Act (FACA), the Committee techniques or other forms of information Information collections are submitted by is being renewed to continue providing technology. FLP direct applicants and borrowers to Comments regarding this information the local FSA office serving the county advice and recommendations on the collection received by March 5, 2014 in which their business is implementation of the National Forest will be considered. Written comments headquartered. The information is System Land Management Planning should be addressed to: Desk Officer for necessary to provide supervised credit Rule (Planning Rule). The Committee is Agriculture, Office of Information and as legislatively mandated and is used by currently deliberating and formulating Regulatory Affairs, Office of Agency Officials to: (1) Ensure that advice for the Secretary on the Proposed Management and Budget (OMB), New when loan funds or insurance proceeds Planning Rule Directives. The Executive Office Building, 725 17th are used for construction and Committee is necessary and in the Street NW., Washington, DC 20502. development, projects, work is public interest. Commenters are encouraged to submit completed according to applicable state FOR FURTHER INFORMATION CONTACT: their comments to OMB via email to: and local requirements, and in a manner Tony Tooke, U.S. Department of [email protected] or that protects the Agency’s financial Agriculture, Forest Service, National fax (202) 395–5806 and to Departmental interest. (2) Ensure that the loan Forest System, Ecosystem Management Clearance Office, USDA, OCIO, Mail repayment plan is developed using Coordination; telephone: 202–205–0830 Stop 7602, Washington, DC 20250– realistic data, based on the actual or email: [email protected]. Individuals 7602. Copies of the submission(s) may history of the operation and any who use telecommunication devices for be obtained by calling (202) 720–8958. planned improvements. (3) Identify the deaf (TDD) may call the Federal An agency may not conduct or potential concerns limiting the success Information Relay Service (FIRS) at 1– sponsor a collection of information of the operation and develop a loan 800–877–8339 between 8:00 a.m. and unless the collection of information assessment outlining the course of 8:00 p.m., Eastern Standard Time, displays a currently valid OMB control action to be followed, to improve the Monday through Friday. number and the agency informs operation so that commercial credit is SUPPLEMENTARY INFORMATION:

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Background a. National, regional, or local SUMMARY: The Black Hills National In accordance with the provisions of environmental organizations Forest Advisory Board (Board) will meet the Federal Advisory Committee Act b. Conservation organizations or in Rapid City, South Dakota. The Board (FACA), as amended (5 U.S.C. App. 2), watershed associations is established consistent with the the Secretary of Agriculture intends to c. Dispersed recreation interests Federal Advisory Committee Act of renew the National Advisory Committee d. Archaeological or historical interests 1972 (5 U.S.C. App. II), the Forest and for Implementation of the National e. Scientific Community Rangeland Renewable Resources Forest System Land Management 3. Up to 7 members who represent Planning Act of 1974 (16 U.S.C. 1600 Planning Rule. The Committee is a one or more of the following: et.seq.), the National Forest Management Act of 1976 (16 U.S.C. discretionary advisory committee. The a. Timber Industry 1612), and the Federal Public Lands Committee operates under the b. Grazing or other land use permit Recreation Enhancement Act (Pub. L. provisions of FACA and will report to holders or other private forest 108–447). Additional information the Secretary of Agriculture through the landowners concerning the Board can be found by Chief of the Forest Service. c. Energy and mineral development visiting the Board’s Web site at: http:// The purpose of the Committee is to d. Commercial or recreational hunting www.fs.usda.gov/main/blackhills/ provide advice and recommendations and fishing interests workingtogether/advisorycommittees. on implementation of the planning rule. e. Developed outdoor recreation, off- The Committee will be asked to perform highway vehicle users, or DATES: The meeting will be held the following duties or other requests commercial recreation interests Wednesday, February 19, 2014, at 1:00 made by the Secretary of Agriculture or p.m. No individual who is currently the Chief of the Forest Service: ADDRESSES: The meeting will be held at 1. Review the content of and provide registered as a Federal lobbyist is eligible to serve as a member of the the Mystic Ranger District, 8221 South recommendations on directives related Highway 16, Rapid City, South Dakota. to implementation of the planning rule; Committee. Members of the Committee serve without compensation, but may be Written comments may be submitted as 2. Offer recommendations on described under SUPPLEMENTARY implementation of the planning rule, reimbursed for travel expenses while performing duties on behalf of the INFORMATION. All comments, including based on lessons learned and best names and addresses, when provided, practices from on-going or completed Committee, subject to approval by the DFO. are placed in the record and available assessments, revisions, and monitoring for public inspection and copying. The strategies; The Committee meets three to six times annually or as often as necessary public may inspect comments received 3. Offer recommendations on new at the Black Hills National Forest best practices that could be and at such times as designated by the Designated Federal Official (DFO). Supervisor’s Office. Please call ahead to implemented based on lessons learned; facilitate entry into the building. 4. Offer recommendations for The appointment of members to the consistent interpretation of the rule Committee was made by the Secretary of FOR FURTHER INFORMATION CONTACT: where ambiguities cause difficulty in Agriculture. Further information about Scott Jacobson, Committee Coordinator, implementation of the rule; the Committee is posted on the Planning by phone at 605–673–9216, or by email 5. Offer recommendations for effective Rule Advisory Committee Web site: at [email protected]. ongoing monitoring and evaluation, http://www.fs.usda.gov/main/ Individuals who use including broadscale monitoring, for planningrule/committee. telecommunication devices for the deaf implementation of the planning rule; Equal opportunity practices in (TDD) may call the Federal Information 6. Offer recommendations on how to accordance with U.S. Department of Relay Service (FIRS) at 1–800–877–8339 foster an effective ongoing collaborative Agriculture (USDA) policies will be between 8:00 a.m. and 8:00 p.m., framework to ensure engagement of followed in all appointments to the Eastern Standard Time, Monday Federal, State, local and Tribal committee. To ensure that the through Friday. governments; private organizations and recommendations of the Committee SUPPLEMENTARY INFORMATION: The affected interests; the scientific have taken into account the needs of the purpose of the meeting is to provide: community; and other stakeholders; and diverse groups served by USDA, (1) Orientation on Forest Funding, 7. Offer recommendations for membership includes to the extent Appropriations and Trends. integrating the land management possible, individuals with demonstrated (2) Update from the Motorized Travel planning process with landscape scale ability to represent minorities, women, working group. restoration activities through and persons with disabilities. (3) Appointment of Recreational implementation of the planning rule. Facilities working group. Dated: January 17, 2014. (4) Briefing on the Forest Plan. Advisory Committee Organization Gregory L. Parham, (5) Briefing on the 2013 Forest This Committee is currently Assistant Secretary for Administration. Monitoring Report. comprised of 21 members who provide [FR Doc. 2014–02113 Filed 1–31–14; 8:45 am] (6) Update on board membership and balanced and broad representation BILLING CODE 3411–15–P status of charter renewal for NFAB. within each of the following three The meeting is open to the public. categories of interests: The agenda will include time for people 1. Up to 7 members who represent DEPARTMENT OF AGRICULTURE to make oral statements of three minutes one or more of the following: or less. Individuals wishing to make an Forest Service a. Represent the affected public at-large oral statement should submit a request b. Hold State-elected office (or designee) in writing by February 10, 2014 to be Black Hills National Forest Advisory scheduled on the agenda. Anyone who c. Hold county or local elected office Board d. Represent American Indian Tribes would like to bring related matters to e. Represent Youth AGENCY: Forest Service, USDA. the attention of the committee may file 2. Up to 7 members who represent written statements with the committee ACTION: Notice of meeting. one or more of the following: staff before or after the meeting. Written

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comments and time requests for oral Whereas, notice inviting public backed paperboard (free) for the foreign comments must be sent to Scott comment has been given in the Federal status input noted below and the inputs Jacobson, Black Hills National Forest Register (78 FR 49254, 8/13/2013) and in the existing scope of authority. Supervisor’s Office, 1019 North Fifth the application has been processed Customs duties also could possibly be Street, Custer, South Dakota 57730; by pursuant to the FTZ Act and the Board’s deferred or reduced on foreign status email to [email protected], or via regulations; and, production equipment. facsimile to 605–673–9208. A summary Whereas, the Board adopts the The material sourced from abroad is of the meeting will be posted on the findings and recommendations of the aluminum converter foil (duty rate: Web site listed above within 45 days examiner’s memorandum, and finds that 5.8%). after the meeting. the requirements of the FTZ Act and the Public comment is invited from Meeting Accommodations: If you are Board’s regulations are satisfied; interested parties. Submissions shall be a person requiring reasonable Now, therefore, the Board hereby addressed to the FTZ Board’s Executive accommodation, please make requests approves subzone status at the facilities Secretary at the address below. The in advance for sign language of Toshiba International Corporation closing period for their receipt is March interpreting, assistive listening devices located in Houston, Texas (Subzone 17, 2014. or other reasonable accommodation for 84T), as described in the application A copy of the notification will be access to the facility or proceedings by and Federal Register notice, subject to available for public inspection at the contacting the person listed in the the FTZ Act and the Board’s regulations, Office of the Executive Secretary, section titled FOR FURTHER INFORMATION including Section 400.13. Foreign-Trade Zones Board, Room CONTACT. All reasonable Signed at Washington, DC, this 27th day of 21013, U.S. Department of Commerce, accommodation requests are managed January, 2014. 1401 Constitution Avenue NW., on a case by case basis. Paul Piquado, Washington, DC 20230–0002, and in the Dated: January 24, 2014. Assistant Secretary of Commerce for ‘‘Reading Room’’ section of the FTZ Enforcement and Compliance, Alternate Craig Bobzien, Board’s Web site, which is accessible Chairman, Foreign-Trade Zones Board. via www.trade.gov/ftz. Forest Supervisor and Designated Federal [FR Doc. 2014–02233 Filed 1–31–14; 8:45 am] Official. For further information, contact Pierre BILLING CODE 3510–DS–P Duy at [email protected] or (202) [FR Doc. 2014–02152 Filed 1–31–14; 8:45 am] 482–1378. BILLING CODE 3410–15–P Dated: January 22, 2014. DEPARTMENT OF COMMERCE Andrew McGilvray, Foreign-Trade Zones Board Executive Secretary. DEPARTMENT OF COMMERCE [B–5–2014] [FR Doc. 2014–02230 Filed 1–31–14; 8:45 am] Foreign-Trade Zones Board BILLING CODE 3510–DS–P Foreign-Trade Zone (FTZ) 230— [Order No. 1929] Piedmont Triad Area, North Carolina; Notification of Proposed Production DEPARTMENT OF COMMERCE Approval of Subzone Status, Toshiba Activity; Oracle Flexible Packaging, Foreign-Trade Zones Board International Corporation; Houston, Inc. (Foil Backed Paperboard); Texas Winston-Salem, North Carolina [B–07–2014] Pursuant to its authority under the Foreign- Oracle Flexible Packaging, Inc. (OFP), Foreign-Trade Zone (FTZ) 269— Trade Zones Act of June 18, 1934, as an operator of FTZ 230, submitted a Athens, Texas; Notification of amended (19 U.S.C. 81a–81u), the Foreign- notification of proposed production Proposed Production Activity; Trade Zones Board (the Board) adopts the activity to the FTZ Board for its facility following Order: Schneider Electric USA (Electrical located in Winston-Salem, North Component Assembly); Athens, Texas Whereas, the Foreign-Trade Zones Act Carolina. The notification conforming to provides for ‘‘. . . the establishment the requirements of the regulations of Schneider Electric USA submitted a . . . of foreign-trade zones in ports of the FTZ Board (15 CFR 400.22) was notification of proposed production entry of the United States, to expedite received on January 6, 2014. activity to the FTZ Board for its facility and encourage foreign commerce, and OFP already has authority to produce in Athens, Texas within FTZ 269. The for other purposes,’’ and authorizes the laminated foil and foil backed paper notification conforming to the Foreign-Trade Zones Board to grant to products. The current request would requirements of the regulations of the qualified corporations the privilege of add a new finished product (foil backed FTZ Board (15 CFR 400.22) was establishing foreign-trade zones in or paperboard) and certain foreign material received on January 15, 2014. adjacent to U.S. Customs and Border to the scope of authority. Pursuant to 15 The Schneider Electric USA Protection ports of entry; CFR 400.14(b), FTZ activity would be (Schneider Electric) facility is located Whereas, the Board’s regulations (15 limited to the specific foreign-status within Site 1 of FTZ 269. The facility is CFR Part 400) provide for the materials and specific finished products used for the assembly and kitting of establishment of subzones for specific described in the submitted notification electrical components and finished uses; (as described below) and subsequently products used to control lighting and Whereas, the Port of Houston authorized by the FTZ Board. HVAC equipment. Pursuant to 15 CFR Authority, grantee of Foreign-Trade Production under FTZ procedures 400.14(b), FTZ activity would be limited Zone 84, has made application to the could exempt OFP from customs duty to the specific foreign-status materials Board for the establishment of a subzone payments on the foreign status materials and components and specific finished at the facilities of Toshiba International used in export production. On its products described in the submitted Corporation located in Houston, Texas domestic sales, OFP would be able to notification (as described below) and (FTZ Docket B–77–2013, docketed 8/8/ choose the duty rate during customs subsequently authorized by the FTZ 2013); entry procedures that applies to foil Board.

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Production under FTZ procedures programming cables; network analyzers; various antidumping and countervailing could exempt Schneider Electric from and, C–BUS remote temperature sensors duty orders and findings with December customs duty payments on the foreign (duty rate ranges from free to 5.3%). anniversary dates. status components used in export Public comment is invited from All deadlines for the submission of production. On its domestic sales, interested parties. Submissions shall be various types of information, Schneider Electric would be able to addressed to the Board’s Executive certifications, or comments or actions by choose the duty rates during customs Secretary at the address below. The the Department discussed below refer to entry procedures that apply to: Power closing period for their receipt is March the number of calendar days from the supplies; bus couplers; dimmers; bus 17, 2014. applicable starting time. coupler boxes and box enclosures; A copy of the notification will be Notice of No Sales button key inputs; occupancy sensors; available for public inspection at the dual and single 120-volt bus couplers; Office of the Executive Secretary, If a producer or exporter named in dual and single 277-volt bus couplers; Foreign-Trade Zones Board, Room this notice of initiation had no exports, 120-volt and 277-volt device routers; 21013, U.S. Department of Commerce, sales, or entries during the period of power supplies; power supply 1401 Constitution Avenue NW., review (‘‘POR’’), it must notify the controllers; button labels; and, switch Washington, DC 20230–0002, and in the Department within 60 days of covers (duty rate ranges from free to ‘‘Reading Room’’ section of the Board’s publication of this notice in the Federal 5.3%) for the foreign status inputs noted Web site, which is accessible via Register. All submissions must be filed below. Customs duties also could www.trade.gov/ftz. electronically at http:// iaaccess.trade.gov in accordance with possibly be deferred or reduced on FOR FURTHER INFORMATION CONTACT: 19 CFR 351.303.1 Such submissions are foreign status production equipment. Christopher Kemp at subject to verification in accordance [email protected] or (202) The components and materials with section 782(i) of the Tariff Act of 482–0862. sourced from abroad include: touch 1930, as amended (‘‘Act’’). Further, in screen wall plates; filler plates; nail Dated: January 28, 2014. accordance with 19 CFR 351.303(f)(1)(i), brackets; plasterboard brackets; wall Andrew McGilvray, a copy must be served on every party on plates; touch screen wall boxes; bar Executive Secretary. the Department’s service list. code readers; ethernet interfaces; [FR Doc. 2014–02232 Filed 1–31–14; 8:45 am] network bridges; PC interfaces; USB PC Respondent Selection BILLING CODE 3510–DS–P interfaces; power supplies; remote In the event the Department limits the control power supplies; C–BUS number of respondents for individual controllers; telephone interfaces; RF DEPARTMENT OF COMMERCE examination for administrative reviews, remotes; RF USB PB interfaces; wireless except for the review of the gateways; in-ceiling Kevlar speakers; in- International Trade Administration antidumping duty order on crystalline wall Kevlar speakers; AMP external silicon photovoltaic cells, whether or power supplies; audio amplifiers; audio Initiation of Antidumping and not assembled into modules (‘‘solar cells matrix switchers; audio distribution Countervailing Duty Administrative and modules’’) from the People’s units; in-ceiling polypropylene Reviews and Request for Revocation Republic of China (‘‘PRC’’), the speakers; in-wall polypropylene in Part Department intends to select speakers; outdoor speakers; license keys respondents based on U.S. Customs and AGENCY: Enforcement and Compliance, for networks; hand-held infrared Border Protection (‘‘CBP’’) data for U.S. Formerly Import Administration, remotes; four-channel relays with and imports during the POR. We intend to International Trade Administration, without remotes; C–BUS-wired demo release the CBP data under Department of Commerce. cases; desktop targets; dual and single Administrative Protective Order IR leads; IR flat targets; keypads; SUMMARY: The Department of Commerce (‘‘APO’’) to all parties having an APO occupancy sensor sample cases; pascal (‘‘the Department’’) has received within seven days of publication of this automation controllers; faceplates; requests to conduct administrative initiation notice and to make our dimmers and wireless dimmers; channel reviews of various antidumping and decision regarding respondent selection relays without power supplies; two- countervailing duty orders and findings within 21 days of publication of this channel bus couplers; two-channel with December anniversary dates. In Federal Register notice. The gateways; two-channel C–BUS infrared accordance with the Department’s Department invites comments regarding transmitters; four-channel 0–10 volt regulations, we are initiating those the CBP data and respondent selection outputs; four-channel auxiliary input administrative reviews. within five days of placement of the modules; four-channel changeover DATES: Effective Date: February 3, 2014. CBP data on the record of the applicable relays with and without power supplies; FOR FURTHER INFORMATION CONTACT: review. four-zone thermostats with relays; Brenda E. Waters, Office of AD/CVD In the event the Department decides single-zone thermostats; low-voltage Operations, Customs Liaison Unit, it is necessary to limit individual relays; bus coupler demo cases; dimmer Enforcement and Compliance, examination of respondents and training boards; hand-held universal International Trade Administration, conduct respondent selection under remote controls; infrared code learning U.S. Department of Commerce, 14th section 777A(c)(2) of the Act: units; touch screens; network training Street and Constitution Avenue NW., In general, the Department has found boards; relay training boards; controller Washington, DC 20230, telephone: (202) that determinations concerning whether power supplies; programmable and 482–4735. particular companies should be ‘‘collapsed’’ (i.e., treated as a single single-zone thermostats; wireless SUPPLEMENTARY INFORMATION: training boards; bus coupler enclosures, entity for purposes of calculating boxes and covers; rocker switch Background 1 See Antidumping and Countervailing Duty assemblies; demo cases; termination The Department has received timely Proceedings: Electronic Filing Procedures; boxes for dimmers; indoor light-level requests, in accordance with 19 CFR Administrative Protective Order Procedures, 76 FR sensors; occupancy sensors; USB 351.213(b), for administrative reviews of 39263 (July 6, 2011).

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antidumping duty rates) require a number of imported solar modules in Department begins with a rebuttable substantial amount of detailed attempting to determine the largest PRC presumption that all companies within information and analysis, which often exporters of subject merchandise by the country are subject to government require follow-up questions and volume. Therefore, the Department will control and, thus, should be assigned a analysis. Accordingly, the Department limit the number of Q&V questionnaires single antidumping duty deposit rate. It will not conduct collapsing analyses at issued based on the import values in is the Department’s policy to assign all the respondent selection phase of this CBP data which will serve as a proxy for exporters of merchandise subject to an review and will not collapse companies imported quantities. Parties subject to administrative review in an NME at the respondent selection phase unless the review to which the Department country this single rate unless an there has been a determination to does not send a Q&V questionnaire may exporter can demonstrate that it is collapse certain companies in a file a response to the Q&V questionnaire sufficiently independent so as to be previous segment of this antidumping by the applicable deadline if they desire entitled to a separate rate. proceeding (i.e., investigation, to be included in the pool of companies To establish whether a firm is administrative review, new shipper from which the Department will select sufficiently independent from review or changed circumstances mandatory respondents. The Q&V government control of its export review). For any company subject to this questionnaire will be available on the activities to be entitled to a separate review, if the Department determined, Department’s Web site at http:// rate, the Department analyzes each or continued to treat, that company as trade.gov/enforcement/news.asp on the entity exporting the subject collapsed with others, the Department date of publication of this notice in the merchandise under a test arising from will assume that such companies Federal Register. The responses to the the Final Determination of Sales at Less continue to operate in the same manner Q&V questionnaire must be received by Than Fair Value: Sparklers From the and will collapse them for respondent the Department by February 19, 2014. People’s Republic of China, 56 FR 20588 selection purposes. Otherwise, the Please be advised that due to the time (May 6, 1991), as amplified by Final Department will not collapse companies constraints imposed by the statutory Determination of Sales at Less Than for purposes of respondent selection. and regulatory deadlines for Fair Value: Silicon Carbide From the Parties are requested to (a) identify antidumping duty administrative People’s Republic of China, 59 FR 22585 which companies subject to review reviews, the Department does not intend (May 2, 1994). In accordance with the previously were collapsed, and (b) to grant any extensions for the separate rates criteria, the Department provide a citation to the proceeding in submission of responses to the Q&V assigns separate rates to companies in which they were collapsed. Further, if questionnaire. Parties will be given the NME cases only if respondents can companies are requested to complete opportunity to comment on the CBP demonstrate the absence of both de jure the Quantity and Value (‘‘Q&V’’) data used by the Department to limit the and de facto government control over Questionnaire for purposes of number of Q&V questionnaires issued. export activities. respondent selection, in general each We intend to release the CBP data under All firms listed below that wish to company must report volume and value APO to all parties having an APO qualify for separate rate status in the data separately for itself. Parties should within seven days of publication of this administrative reviews involving NME not include data for any other party, notice in the Federal Register. The countries must complete, as even if they believe they should be Department invites comments regarding appropriate, either a separate rate treated as a single entity with that other CBP data and respondent selection application or certification, as described party. If a company was collapsed with within five days of placement of the below. For these administrative reviews, another company or companies in the CBP data on the record. in order to demonstrate separate rate most recently completed segment of this eligibility, the Department requires Deadline for Withdrawal of Request for proceeding where the Department entities for whom a review was Administrative Review considered collapsing that entity, requested, that were assigned a separate complete Q&V data for that collapsed Pursuant to 19 CFR 351.213(d)(1), a rate in the most recent segment of this entity must be submitted. party that has requested a review may proceeding in which they participated, withdraw that request within 90 days of to certify that they continue to meet the Respondent Selection—Crystalline the date of publication of the notice of criteria for obtaining a separate rate. The Silicon Photovoltaic Cells, Whether Or initiation of the requested review. The Separate Rate Certification form will be Not Assembled Into Modules, From the regulation provides that the Department available on the Department’s Web site PRC may extend this time if it is reasonable at http://enforcement.trade.gov/nme/ In the event the Department limits the to do so. In order to provide parties nme-sep-rate.html on the date of number of respondents for individual additional certainty with respect to publication of this Federal Register examination in the administrative when the Department will exercise its notice. In responding to the review of the antidumping duty order discretion to extend this 90-day certification, please follow the on solar cells and modules from the deadline, interested parties are advised ‘‘Instructions for Filing the PRC, the Department intends to select that the Department does not intend to Certification’’ in the Separate Rate respondents based on volume data extend the 90-day deadline unless the Certification. Separate Rate contained in responses to Q&V requestor demonstrates that an Certifications are due to the Department questionnaires. Further, the Department extraordinary circumstance has no later than 60 calendar days after intends to limit the number of Q&V prevented it from submitting a timely publication of this Federal Register questionnaires issued in the review withdrawal request. Determinations by notice. The deadline and requirement based on CBP data for U.S. imports of the Department to extend the 90-day for submitting a Certification applies solar cells and solar modules from the deadline will be made on a case-by-case equally to NME-owned firms, wholly PRC. The units used to measure the basis. foreign-owned firms, and foreign sellers imported quantities of solar cells and who purchase and export subject solar modules are ‘‘number’’; however, Separate Rates merchandise to the United States. it would not be meaningful to sum the In proceedings involving non-market Entities that currently do not have a number of imported solar cells and the economy (‘‘NME’’) countries, the separate rate from a completed segment

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of the proceeding 2 should timely file a owned firms, wholly foreign-owned questionnaire. Exporters subject to the Separate Rate Application to firms, and foreign sellers that purchase antidumping duty administrative review demonstrate eligibility for a separate and export subject merchandise to the of solar cells and modules from the PRC rate in this proceeding. In addition, United States. to which the Department does not send companies that received a separate rate For exporters and producers who a Q&V questionnaire may receive in a completed segment of the submit a separate-rate status application consideration for separate-rate status if proceeding that have subsequently or certification and subsequently are they file a timely Separate Rate made changes, including, but not selected as mandatory respondents, Application or a timely Separate Rate limited to, changes to corporate these exporters and producers will no Certification without filing a response to structure, acquisitions of new longer be eligible for separate rate status the Q&V questionnaire. All information companies or facilities, or changes to unless they respond to all parts of the submitted by respondents in the their official company name,3 should questionnaire as mandatory antidumping duty administrative review timely file a Separate Rate Application respondents. of solar cells and modules from the PRC to demonstrate eligibility for a separate Furthermore, firms to which the is subject to verification. As noted rate in this proceeding. The Separate Department issues a Q&V questionnaire above, the Separate Rate Certification, Rate Status Application will be in the antidumping duty administrative the Separate Rate Application, and the available on the Department’s Web site review of solar cells and modules from Q&V questionnaire will be available on at http://enforcement.trade.gov/nme/ the PRC must submit a timely and the Department’s Web site on the date nme-sep-rate.html on the date of complete response to the Q&V of publication of this notice in the publication of this Federal Register questionnaire, in addition to a timely Federal Register. notice. In responding to the Separate and complete Separate Rate Application Initiation of Review Rate Status Application, refer to the or Certification in order to receive instructions contained in the consideration for separate-rate status. In Initiation of Reviews application. Separate Rate Status other words, the Department will not In accordance with 19 CFR Applications are due to the Department give consideration to any timely 351.221(c)(1)(i), we are initiating no later than 60 calendar days of Separate Rate Certification or administrative reviews of the following publication of this Federal Register Application made by parties to whom antidumping and countervailing duty notice. The deadline and requirement the Department issued a Q&V orders and findings. We intend to issue for submitting a Separate Rate Status questionnaire but who failed to respond the final results of these reviews not Application applies equally to NME- in a timely manner to the Q&V later than December 31, 2014.

Period to be reviewed

Antidumping Duty Proceedings TAIWAN: Steel Wire Garment Hangers, A–583–849 ...... 8/2/12–11/30/13 C & T International Group Ltd. Chaang Rong Industry Co., Ltd. Damco Taiwan Co., Ltd. Faithful Engineering Products Co., Ltd. For You Beautiful Industrial Co., Ltd. Gee Ten Enterprise Co. Ltd. Global Sources Enterprise Co., Ltd. Golden Canyon Limited. Good Wonder Ltd. Hung-Li Die Co., Ltd. Inmall Enterprises Co., Ltd. Intini Co., Ltd. Mico Mit Co., Ltd. Multi-Sander Tech Co., Ltd. Nan Shan International Co., Ltd. (A/K/A Nanshan International Co., Ltd.). Ocean Concept Corporation. Oriental Dragon Co., Ltd. Richlife Texcare Co., Ltd. Saint Master Corp. South Crown Ltd. Taiwan Hanger Manufacturing Co., Ltd. Tay Ruey Enterprise Co. Thinkwide Trading Ltd. Tone World International Corp., B.V. Top Harvest Metal Co., Ltd. Yeh (Cayman) Intl Business. Young Max Enterprises Co. Ltd. The People’s Republic of China: Carbazole Violet Pigment 23,4 A–570–892 ...... 12/1/12–11/30/13 Haimen Ruifeng Pigment Co. Ltd. Jiangsu Haimen Industrial Chemicals Factory. Nantong Haidi Chemicals Co., Ltd.

2 Such entities include entities that have not shipper review, etc.) and entities that lost their 3 Only changes to the official company name, participated in the proceeding, entities that were separate rate in the most recently completed rather than trade names, need to be addressed via preliminarily granted a separate rate in any segment of the proceeding in which they a Separate Rate Application. Information regarding currently incomplete segment of the proceeding participated. new trade names may be submitted via a Separate (e.g., an ongoing administrative review, new Rate Certification.

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Period to be reviewed

The People’s Republic of China: Certain Cased Pencils,5 A–570–827 ...... 12/1/12–11/30/13 Orient International Holding Shanghai Foreign Trade Co., Ltd. Shandong Rongxin Import & Export Co., Ltd. The People’s Republic of China: Crystalline Silicon Photovoltaic Cells, Whether Or Not Assembled into Modules,6 A– 570–979 ...... 5/25/12–11/30/13 Aiko Solar. Amplesun Solar. Baoding Jiasheng Photovoltaic Technology Co. Ltd. Baoding Tianwei Yingli New Energy Resources Co., Ltd. Beijing Hope Industry. Beijing Tianneng Yingli New Energy Resources Co. Ltd. Best Solar Hi-tech. Canadian Solar International Limited. Canadian Solar Manufacturing (Changshu) Inc. Canadian Solar Manufacturing (Luoyang) Inc. CEEG (Shanghai) Solar Science Technology Co., Ltd. CEEG Nanjing Renewable Energy Co., Ltd. Changzhou NESL Solartech Co., Ltd. Changzhou Trina Solar Energy Co., Ltd. China Sunergy. China Sunergy (Nanjing) Co., Ltd. Chinalight Solar. Chint Solar (Zhejiang) Co. Ltd. CNPV Dongying Solar Power Co., Ltd. CSG PVTech Co., Ltd. Dai Hwa Industrial. DelSolar Co., Ltd. De-Tech Trading Limited HK. Dongfang Electric (Yixing) MAGI Solar Power Technology Co., Ltd. EGing. ENN Solar Energy. Eoplly New Energy Technology Co., Ltd. Era Solar Co., Ltd. ET Solar Energy Limited. General Solar Power. Golden Partner development. Goldpoly (Quanzhou). Hainan Yingli New Energy Resources Co., Ltd. Hairun Photovoltaics Technology Co., Ltd. Hangzhou Zhejiang University Sunny Energy Science and Technology Co., Ltd. Hanwha SolarOne (Qidong) Co., Ltd. Hareon Solar Technology. HC Solar Power Co., Ltd. Hengdian Group Dmegc Magnetics. Hengshui Yingli New Energy Resources Co., Ltd. Himin Clean Energy Holdings Co., Ltd. Innovosolar. JA Solar Technology Yangzhou Co., Ltd. Jetion Solar (China) Co., Ltd. Jia Yi Energy Technology. Jiangsu Green Power PV Co., Ltd. Jiangsu Jiasheng Photovoltaic Technology Co., Ltd. Jiangsu Sunlink PV Technology Co., Ltd. Jiangxi Green Power Co. Ltd. Jiasheng Photovoltaic Tech. Jiawei Solar Holding. Jiawei Solarchina Co. (Shenzhen), Ltd. Jiawei Solarchina Co., Ltd. JingAo Solar Co., Ltd. Jinko Solar Co., Ltd. Jinko Solar Import and Export Co, Ltd. JinkoSolar International Limited. Jiutai Energy. Konca Solar Cell Co., Ltd. Kuttler Automation Systems (Suzhou) Co., Ltd. LDK Hi-Tech (Nanchang Co. Ltd. LDK Solar Hi-tech (Nanchang) Co., Ltd. LDK Solar Hi-tech (Suzhou) Co., Ltd. Leye Photovoltaic Science Tech. Lightway Green New Energy Co., Ltd. Linuo Photovoltaic. Lixian Yingli New Energy Resources Co., Ltd. Luoyang Suntech Power Co., Ltd. Magi Solar Technology.

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Period to be reviewed

Motech (Suzhou) Renewable Energy Co., Ltd. Ningbo ETDZ Holdings, Ltd. Ningbo Komaes Solar Technology Co., Ltd. Ningbo Qixin Solar Electrical Appliance Co., Ltd. Ningbo Ulica Solar Science & Technology Co., Ltd. Perfectenergy. Perlight Solar Co., Ltd. Polar Photovoltaics. Qiangsheng (QS Solar). QXPV (Ningbo Qixin Solar Electrical Appliance Co., Ltd). Refine Solar. ReneSola. Renesola Jiangsu Ltd. Risen Energy Co, Ltd. Risun Solar (JiangXi Ruijing Solar Power Co., Ltd). Sanjing Silicon. Shanghai BYD Company Limited. Shanghai Chaori Solar Energy. Shanghai JA Solar Technology Co., Ltd. Shanghai Machinery Complete Equipment (Group) Corp., Ltd. Shanghai Solar Energy Science & Technology Co., Ltd. Shangpin Solar. Shanshan Ulica. Shenglong PV-Tech. Shenzhen Global Solar Energy Tech. Shenzhen Suntech Power Co., Ltd. Shenzhen Topray Solar Co. Ltd. ShunFeng PV. Shuqimeng Energy Tech. Skybasesolar. Solarbest Energy-Tech (Zhejiang) Co., Ltd. Solargiga Energy Holdings Ltd. Sopray Energy Co., Ltd. Star Power International Limited. Sumec Hardware & Tools Co., Ltd. Sun Earth Solar Power Co., Ltd. Sunflower. Sunlink PV. Suntech Power Co., Ltd. Sunvim Solar Technology. Suzhou Shenglong PV-Tech Co., Ltd. Tainergy Tech. tenKsolar (Shanghai) Co., Ltd. Tianjin Jinneng Solar Cell. Tianjin Yingli New Energy Resources Co., Ltd. Tianwei New Energy (Chengdu) PV Module Co., Ltd. Topray. Topsolar. Trina Solar (Changzhou) Science & Technology Co., Ltd. Trony. Upsolar Group Co., Ltd.,. Wanxiang Import & Export Co., Ltd. Weihai China Glass Solar. Wuxi Sunshine Power Co., Ltd. Wuxi Suntech Power Co., Ltd. Wuxi University Science Park International Incubator Co., Ltd. Yangzhou Rietech Renewal Energy Co., Ltd. Yangzhou Suntech Power Co., Ltd. Yingli Energy (China) Co., Ltd. Yingli Green Energy Holding Company Limited. Yingli Green Energy International Trading Company Limited. Yuhan Sinosola Science & Technology Co., Ltd. Yuhuan Solar Energy Source Co., Ltd. Yunnan Tianda. Yunnan Zhuoye Energy. Zhejiang Jiutai New Energy Co., Ltd. Zhejiang Leye Photovoltaic Science & Technology Co., Ltd. Zhejiang Shuqimeng Photovoltaic Technology Co., Ltd. Zhejiang Sunflower Light Energy Science & Technology Limited Liability Company. Zhejiang Top Point Photovoltaic Co., Ltd. Zhejiang Wanxiang Solar Co, Ltd. Zhejiang Xinshun Guangfu Science and Technology Co., Ltd. Zhejiang ZG-Cells Co., Ltd. Zhenjiang Huantai Silicon Science & Technology Co., Ltd.

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Period to be reviewed

Zhenjiang Rietech New Energy Science & Technology Co., Ltd. Zhiheng Solar Inc. The People’s Republic of China: Hand Trucks and Parts Thereof,7 A–570–891 ...... 12/1/12–11/30/13 Full Merit Enterprise Limited. New-Tec Integration (Xiamen) Co., Ltd. Yangjiang Shunhe Industrial Co.. The People’s Republic of China: Honey,8 A–570–863 ...... 12/1/12–11/30/13 Dongtai Peak Honey Industry Co., Ltd. Fuzhou Shenglinmark Trade Co., Ltd. Kunshan Xinlong Food Co., Ltd. The People’s Republic of China: Multilayered Wood Flooring,9 A–570–970 ...... 12/1/12–11/30/13 A&W (Shanghai) Woods Co., Ltd. Anhui Longhua Bamboo Product Co., Ltd. Armstrong Wood Products (Kunshan) Co., Ltd. Baishan Huafeng Wood Product Co., Ltd. Baiying Furniture Manufacturer Co., Ltd. Benxi Wood Company. Changbai Mountain Development and Protection Zone Hongtu Wood Industrial Co., Ltd. Changzhou Hawd Flooring Co., Ltd. Chinafloors Timber (China) Co., Ltd. Dalian Dajen Wood Co., Ltd. Dalian Huade Wood Product Co., Ltd. Dalian Huilong Wooden Products Co., Ltd. Dalian Jiuyuan Wood Industry Co., Ltd. Dalian Kemian Wood Industry Co., Ltd. Dalian Penghong Floor Products Co., Ltd. Dalian T-Boom Wood Products Co., Ltd. Dasso Industrial Group Co., Ltd. Dazhuang Floor Co. (dba Dasso Industrial Group Co., Ltd.). Dongtai Fuan Universal Dynamics LLC. Dua Hua City Jisen Wood Industry Co., Ltd. Dua Hua Sen Tai Wood Co., Ltd. Duahua City Dexin Wood Industry Co., Ltd. Dunhua City Hongyuan Wood Industry Co., Ltd. Dunhua City Wanrong Wood Industry Co., Ltd. Dunhua Jisheng Wood Industry Co., Ltd. Dunhua Shengda Wood Industry Co., Ltd. Fine Furniture (Shanghai) Limited. Fu Lik Timber (HK) Co., Ltd. Fusong Jinlong Wooden Group Co., Ltd. Fusong Qianqiu Wooden Product Co., Ltd. GTP International Ltd. Guangdong Fu Lin Timber Technology Limited. Guangdong Yihua Timber Industry Co., Ltd. Guangzhou Homebon Timber Manufacturing Co., Ltd. Guangzhou Panyu Kangda Board Co., Ltd. Guangzhou Panyu Shatou Trading Co., Ltd. Guangzhou Panyu Southern Star Co., Ltd. HaiLin LinJing Wooden Products, Ltd. Hangzhou Hanje Tec Co., Ltd. Hangzhou Zhengtian Industrial Co., Ltd. Hunchun Forest Wolf Wooden Industry Co., Ltd. Hunchun Xingjia Wooden Flooring Inc. Huzhou Chenghang Wood Co., Ltd. Huzhou Fulinmen Imp. & Exp. Co., Ltd. Huzhou Fuma Wood Bus. Co., Ltd. Huzhou Jesonwood Co., Ltd. Huzhou Ruifeng Imp. & Exp. Co., Ltd. Huzhou Sunergy World Trade Co., Ltd. Jianfeng Wood (Suzhou) Co., Ltd. Jiangsu Kentier Wood Co., Ltd. Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. Jiangsu Simba Flooring Co., Ltd. Jiashan Hui Jia Le Decoration Material Co., Ltd. Jiaxing Brilliant Import & Export Co., Ltd. Jiazing Brilliant Import & Export Co., Ltd. Jilin Forest Industry Jinqiao Flooring Group Co., Ltd. Jilin Xinyuan Wooden Industry Co., Ltd. Karly Wood Product Limited. Kemian Wood Industry (Kushan) Co., Ltd. Linyi Anying Wood Co., Ltd. Linyi Bonn Flooring Manufacturing Co., Ltd. Metropolitan Hardwood Floors, Inc. MuDanJiang Bosen Wood Industry Co., Ltd.

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Period to be reviewed

Nakahiro Jyou Sei Furniture (Dalian) Co., Ltd. Nanjing Minglin Wooden Industry Co., Ltd. Pinge Timber Manufacturing (Zhejiang) Co., Ltd. Power Dekor Group Co., Ltd. Puli Trading Limited. Samling Group. Sennorwell International Group (Hong Kong) Limited. Shanghai Eswell Timber Co., Ltd. Shanghai Lairunde Wood Co., Ltd Shanghai Lizhong Wood Products Co., Ltd./The Lizhong Wood Industry Lim- ited Company of Shanghai. Shanghai New Sihe Wood Co., Ltd. Shanghai Shenlin Corporation. Shenyang Haobainian Wooden Co., Ltd. Shenyang Sende Wood Co., Ltd. Shenyang Senwang Wooden Industry Co., Ltd. Shenzhenshi Huanwei Woods Co., Ltd. Suzhou Anxin Weiguang Timber Co., Ltd. Suzhou Dongda Wood Co., Ltd. Vicwood Industry (Suzhou) Co. Ltd. Xiamen Yung De Ornament Co., Ltd. Xuzhou Shenghe Wood Co., Ltd. Yekalon Industry, Inc. Yingyi-Nature (Kunshan) Wood Industry Co., Ltd. Yixing Lion-King Timber Industry Co., Ltd. Zhejiang AnJi XinFeng Bamboo & Wood Co., Ltd. Zhejiang Biyork Wood Co., Ltd. Zhejiang Dadongwu GreenHome Wood Co., Ltd. Zhejiang Desheng Wood Industry Co., Ltd. Zhejiang Fudeli Timber Industry Co., Ltd. Zhejiang Fuerjia Wooden Co., Ltd. Zhejiang Fuma Warm Technology Co., Ltd. Zhejiang Haoyun Wood Co., Ltd. Zhejiang Jeson Wood Co., Ltd. Zhejiang Layo Wood Industry Co., Ltd. Zhejiang Longsen Lumbering Co., Ltd. Zhejiang Shiyou Timber Co., Ltd. Zhejiang Tianzhen Bamboo & Wood Development Co., Ltd. The People’s Republic Of China: Polyethylene Terephthalate (PET) Film,10 11 A–570–924 ...... 11/1/12–10/31/13 Shaoxing Xiangyu Green Packing Co., Ltd. Countervailing Duty Proceedings The People’s Republic of China: Crystalline Silicon Photovoltaic Cells, Whether Or Not Assembled into Modules, C– 570–980 ...... 3/26/12–12/31/12 Aiko Solar. Amplesum Solar. Baoding Jiansheng Photovoltaic Technology Co., Ltd. Baoding Tianwei Yingli New Energy Resources Co., Ltd. Beijing Hope Industry. Beijing Tianneng Yingli New Energy Resources Co. Ltd. Best Solar Hi-tech. Canadian Solar International Limited. Canadian Solar Manufacturing (Changshu) Inc. Canadian Solar Manufacturing (Luoyang) Inc. CEEG (Shanghai) Solar Science Technology Co., Ltd. CEEG Nanjing Renewable Energy Co., Ltd. China Sunergy. Chinalight Solar. Chint Solar (Zhejiang) Co., Ltd. CNPV Dongying Solar Power Co., Ltd. CSG PVTech Co., Ltd. Changzhou NESL Solartech Co., Ltd. China Sunergy (Nanjing) Co., Ltd. Dai Hwa Industrial. De-Tech Trading Limited HK. DelSolar Co., Ltd. EGing. ENN Solar Energy. Eoplly New Energy Technology Co., Ltd. Era Solar Co., Ltd. ET Solar Energy Limited. General Solar Power. Golden Partner Development. Goldpoly (Quanzhou). Hainan Yingli New Energy Resources Co., Ltd.

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Period to be reviewed

Hangzhou Zhejiang University Sunny Energy Science and Technology Co. Ltd. Hairun Photovoltaics Technology Co., Ltd. Hareon Solar Technology Co., Ltd. Hendigan Group Dmegc Magnetics. Hengshui Yingli New Energy Resources Co., Ltd. Himin Clean Energy Holdings Co., Ltd. Jiangsu Green Power PV Co., Ltd. Jiangsu Jiasheng Photovoltaic Technology Co., Ltd. Jiawei Solarchina Co., Ltd. Jiawei Solarchina Co. (Shenzhen), Ltd. Jiawei Solar Holding. Innovosolar. JA Solar Technology Yangzhou Co., Ltd. Jetion Solar (China) Co., Ltd. Jiangsheng Photovoltaic Tech. Jiangsu Green Power PV Co., Ltd. Jiangsu Sunlink PV Technology Co., Ltd. Jiangxi Green Power Co. Ltd. Jiangxi Sunlink PV Technology Co., Ltd. Jia Yi Energy Technology. JingAo Solar Co., Ltd. Jinko Solar Import and Export Co., Ltd. Jinko Solar International Limited. Jinko Solar Co., Ltd. Jiuatai Energy. Konca Solar Cell Co., Ltd. Ningbo Komaes Solar Technology Co., Ltd. LDK Solar Hi-tech (Nanchang). LDK Solar Hi-tech (Suzhou) Co., Ltd. Leye Photovoltaic Science Tech. Lightway Green New Energy Co., Ltd. Linuo Photovoltaic. Lixian Yingli New Energy Resources Co., Ltd. Magi Solar Technology. Motech (Suzhou) Renewable Energy Co., Ltd. MS Solar Investments LLC. Ningbo ETDZ Holdings, Ltd. Ningbo Qixin Solar Electrical Appliance Co., Ltd. Ningbo Ulica Solar Science & Technology Co., Ltd. Perlight Solar Co., Ltd. Perfectenergy. Polor Photovoltaics. Qiangsheng (QS Solar). QXPV (Ningbo Qixin Solar Electrial Appliance Co., Ltd). Refine Solar. ReneSola. Renesola Jinagsu Ltd. Risen Energy Co, Ltd. Risun Solar (JiangXi Ruijing Solar Power Co., Ltd). Sanjing Silicon. Shanghai Chaori Solar Energy. Shanghai Solar Energy Science & Technology Co., Ltd. Shanghai BYD Company Limited. Shanghai JA Solar Technology Co., Ltd. Shanghai Machinery Complete Equipment (Group) Corp., Ltd. Shenzhen Global Solar Energy Tech. Shenzen Topray Solar Co., Ltd. Solarbest Energy-Techn (Zhejiang) Co., Ltd. Sopray Energy Co., Ltd. Shangpin Solar. Sumec Hardware & Tools Co., Ltd. Soloarbest Energy-Tech (Zhejiang) Co., Ltd. Shanshan Ulica. Shenglong PV-Tech. ShunFeng PV. Shupimeng Energy Tech. Skybasesolar. Solargiga Energy Holdings Ltd. Sun Earth Solar Power Co., Ltd. Sunflower. Sunlink PV. Wuxi Suntech Power Co., Ltd. Luoyang Suntech Power Co., Ltd. Suntech Power Co., Ltd.

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Period to be reviewed

Wuxi Sun-shine Power Co., Ltd. Sunvim Solar Technology. Suzhou Shenglong PV-Tech Co., Ltd. Tainergy Tech. tenKsolar (Shanghai) Co., Ltd. Tianjin Jinneng Solar Cell. Tianjin Yingli New Energy Resources Co., Ltd. Tianwei New Energy (Chengdu) PV Module Co., Ltd. Boading Tianwei Yingli New Energy Resources Co., Ltd. Topray. Topsolar. Changzhou Trina Solar Energy Co., Ltd. Trina Solar (Changzhou) Science & Technology Co., Ltd. Trony. Wanxiang Import & Export Co., Ltd. Weihai China Glass Solar. Yingli Energy (China) Company Limited. Yingli Green Energy International Trading Company Limited. Yuhan Sinosola Science & Technology Co., Ltd. Yuhuan Solar Energy Source Co., Ltd. Yunnan Tianda. Yunnan Zhuoye Energy. Upsolar Group, Co. Ltd. HC Solar Power Co., Ltd. Zhiheng Solar Inc. Zhejiang Leye Photovoltaic Science & Technology Co., Ltd. Tianwei New Energy (Chengdu) PV Module Co., Ltd. Zhejiang ZG-Cells Co., Ltd. Zhejiang Xinshun Guangfu Science and Technology Co., Ltd. Zhejiang Jiutai New Energy Co. Ltd. Zhejiang Shuqimeng Photovoltaic Technology Co., Ltd. Zhejiang Sunflower Light Energy Science & Technology Limited Liability Company. Zhejiang Wanxiang Solar Co, Ltd. Dongfang Electric (Yixing) MAGI Solar Power Technology Co. Ltd. Yangzhou Rietech Renewal Energy Co., Ltd. Zhenjiang Huantai Silicon Science & Technology Co., Ltd. Kuttler Automation Systems (Suzhou) Co. Ltd. Shenzhen Suntech Power Co., Ltd. Wuxi Sunshine Power. Wuxi Universary Science Park International Incubator Co., Ltd. Yangzhou Suntech Power Co., Ltd. Zhenjiang Rietech New Energy Science & Technology Co., Ltd. The People’s Republic of China: Lightweight Thermal Paper,12 C–570–921 ...... 1/1/12–12/31/12 The People’s Republic of China: Multilayered Wood Flooring, C–570–971 ...... 1/1/12–12/31/12 A&W (Shanghai) Woods Co., Ltd. Anhui Suzhou Dongda Wood Co., Ltd. Armstrong Wood Products (Kunshan) Co., Ltd. Baishan Huafeng Wood Product Co., Ltd. Baiying Furniture Manufacturer Co., Ltd. Baroque Timber Industries (Zhongshan) Co., Ltd. Changbai Mountain Development and Protection Zone Hongtu Wood Industrial Co., Ltd. Changzhou Hawd Flooring Co., Ltd. Chinafloors Timber (China) Co. Ltd. Dalian Dajen Wood Co., Ltd. Dalian Huade Wood Product Co., Ltd. Dalian Huilong Wooden Products Co., Ltd. Dalian Jiuyuan Wood Industry Co., Ltd. Dalian Kemian Wood Industry Co., Ltd. Dalian Penghong Floor Products Co., Ltd. Dalian T-Boom Wood Products Co., Ltd. Dongtai Fuan Universal Dynamics, LLC. Dun Hua City Jisen Wood Industry Co., Ltd. Dunhua City Dexin Wood Industry Co., Ltd. Dunhua City Hongyuan Wood Industry Co., Ltd. Dunhua City Wanrong Wood Industry Co., Ltd. Dunhua Sentai Wood Co., Ltd. Dunhua Shengda Wood Industry Co., Ltd. Fine Furniture (Shanghai) Limited. Fu Lik Timber (HK) Co., Ltd. Fusong Jinlong Wooden Group Co., Ltd. Fusong Qianqiu Wooden Product Co., Ltd. GTP International Ltd. Guangdong Yihua Timber Industry Co., Ltd. Guangzhou Homebon Timber Manufacturing Co., Ltd.

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Period to be reviewed

Guangzhou Panyu Kangda Board Co., Ltd. Guangzhou Panyu Southern Star Co., Ltd. HaiLin XinCheng Wooden Products, Ltd. Hangzhou Dazhuang Floor Co., Ltd. (dba Dasso Industrial Group Co., Ltd.). Hangzhou Hanje Tec Co., Ltd. Hangzhou Zhengtian Industrial Co., Ltd. Hunchun Forest Wolf Wooden Industry Co., Ltd. Hunchun Xingjia Wooden Flooring Inc. Huzhou Chenghang Wood Co., Ltd. Huzhou Fulinmen Imp. & Exp. Co., Ltd. Huzhou Fuma Wood Co., Ltd. Huzhou Jesonwood Co., Ltd. Huzhou Ruifeng Imp. & Exp. Co., Ltd. Huzhou Sunergy World Trade Co., Ltd. Jiafeng Wood (Suzhou) Co., Ltd. Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. Jiangsu Simba Flooring Co., Ltd. Jiashan Hui Jia Le Decoration Material Co., Ltd. Jilin Forest Industry Jinqiao Flooring Group Co., Ltd. Jilin Xinyuan Wooden Industry Co., Ltd. Karly Wood Product Limited. Kemian Wood Industry (Kunshan) Co., Ltd. Linyi Anying Wood Co., Ltd. Linyi Bonn Flooring Manufacturing Co., Ltd. Linyi Youyou Wood Co., Ltd. Mudanjiang Bosen Wood Industry Co., Ltd. Nakahiro Jyou Sei Furniture (Dalian) Co., Ltd. Nanjing Minglin Wooden Industry Co., Ltd. Power Dekor Group Co., Ltd. Riverside Plywood Corporation. Samling Elegant Living Trading (Labuan) Limited. Samling Riverside Co., Ltd. Shanghai Anxin (Weiguang) Timber Co., Ltd. Shanghai Eswell Timber Co., Ltd. Shanghai Lairunde Wood Co., Ltd. Shanghai Lizhong Wood Products Co., Ltd. (also known as the The Lizhong Wood Industry Limited Company of Shanghai). Shanghai New Sihe Wood Co., Ltd. Shanghai Shenlin Corporation. Shenyang Haobainian Wooden Co., Ltd. Shenzhenshi Huanwei Woods Co., Ltd. Vicwood Industry (Suzhou) Co. Ltd. Xiamen Yung De Ornament Co., Ltd. Xuzhou Shenghe Wood Co., Ltd. Yekalon Industry, Inc. Yingyi-Nature (Kunshan) Wood Industry Co., Ltd. Yixing Lion-King Timber Industry. Zhejiang Anji Xinfeng Bamboo and Wood Industry Co., Ltd. Zhejiang Biyork Wood Co., Ltd. Zhejiang Dadongwu Green Home Wood Co., Ltd. Zhejiang Desheng Wood Industry Co., Ltd. Zhejiang Fudeli Timber Industry Co., Ltd. Zhejiang Fuerjia Wooden Co., Ltd. Zhejiang Fuma Warm Technology Co., Ltd. Zhejiang Haoyun Wooden Co., Ltd. Zhejiang Longsen Lumbering Co., Ltd. Zhejiang Shiyou Timber Co., Ltd. Zhejiang Tianzhen Bamboo & Wood Development Co., Ltd. Suspension Agreements None.

qualified for a separate rate are deemed to be 7 If one of the above-named companies does not 4 If one of the above-named companies does not covered by this review as part of the single PRC qualify for a separate rate, all other exporters of qualify for a separate rate, all other exporters of entity of which the named exporters are a part. Hand Trucks and Parts Thereof PRC who have not Carbazole Violet Pigment 23 from the PRC who 6 If one of the above-named companies does not qualified for a separate rate are deemed to be have not qualified for a separate rate are deemed to qualify for a separate rate, all other exporters of covered by this review as part of the single PRC be covered by this review as part of the single PRC Crystalline Silicon Photovoltaic Cells, Whether Or entity of which the named exporters are a part. entity of which the named exporters are a part. Not Assembled into Modules from the PRC who 8 If one of the above-named companies does not 5 If one of the above-named companies does not qualify for a separate rate, all other exporters of have not qualified for a separate rate are deemed to qualify for a separate rate, all other exporters of Certain Cased Pencils from the PRC who have not be covered by this review as part of the single PRC Honey from the PRC who have not qualified for a entity of which the named exporters are a part. separate rate are deemed to be covered by this

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During any administrative review notice of initiation. Parties wishing to any antidumping duty or countervailing covering all or part of a period falling participate in any of these duty proceedings initiated on or after between the first and second or third administrative reviews should ensure March 14, 2011 should use the formats and fourth anniversary of the that the meet the requirements of these for the revised certifications provided at publication of an antidumping duty procedures (e.g., the filing of separate the end of the Interim Final Rule.14 All order under 19 CFR 351.211 or a letters of appearance as discussed at 19 segments of any antidumping duty or determination under 19 CFR CFR 351.103(d)). countervailing duty proceedings 351.218(f)(4) to continue an order or initiated on or after August 16, 2013, Revised Factual Information suspended investigation (after sunset should use the formats for the revised Requirements review), the Secretary, if requested by a certifications provided at the end of the domestic interested party within 30 On April 10, 2013, the Department Final Rule.15 The Department intends to days of the date of publication of the published Definition of Factual reject factual submissions in any notice of initiation of the review, will Information and Time Limits for proceeding segments if the submitting determine, consistent with FAG Italia v. Submission of Factual Information: party does not comply with applicable United States, 291 F.3d 806 (Fed Cir. Final Rule, 78 FR 21246 (April 10, revised certification requirements. 2002), as appropriate, whether 2013), which modified two regulations Revised Extension of Time Limits antidumping duties have been absorbed related to antidumping and Regulation by an exporter or producer subject to the countervailing duty proceedings: The review if the subject merchandise is definition of factual information (19 On September 20, 2013, the sold in the United States through an CFR 351.102(b)(21)), and the time limits Department modified its regulation importer that is affiliated with such for the submission of factual concerning the extension of time limits exporter or producer. The request must information (19 CFR 351.301). The final for submissions in antidumping and include the name(s) of the exporter or rule identifies five categories of factual countervailing duty proceedings: Final producer for which the inquiry is information in 19 CFR 351.102(b)(21), Rule, 78 FR 57790 (September 20, 2013). requested. which are summarized as follows: (i) The modification clarifies that parties For the first administrative review of Evidence submitted in response to may request an extension of time limits any order, there will be no assessment questionnaires; (ii) evidence submitted before a time limit established under of antidumping or countervailing duties in support of allegations; (iii) publicly Part 351 expires, or as otherwise on entries of subject merchandise available information to value factors specified by the Secretary. In general, an entered, or withdrawn from warehouse, under 19 CFR 351.408(c) or to measure extension request will be considered for consumption during the relevant the adequacy of remuneration under 19 untimely if it is filed after the time limit provisional-measures ‘‘gap’’ period, of CFR 351.511(a)(2); (iv) evidence placed established under Part 351 expires. For the order, if such a gap period is on the record by the Department; and (v) submissions which are due from applicable to the POR. evidence other than factual information multiple parties simultaneously, an Interested parties must submit described in (i)–(iv). The final rule extension request will be considered applications for disclosure under requires any party, when submitting untimely if it is filed after 10:00 a.m. on administrative protective orders in factual information, to specify under the due date. Examples include, but are accordance with 19 CFR 351.305. On which subsection of 19 CFR not limited to: (1) Case and rebuttal January 22, 2008, the Department 351.102(b)(21) the information is being briefs, filed pursuant to 19 CFR 351.309; published Antidumping and submitted and, if the information is (2) factual information to value factors Countervailing Duty Proceedings: submitted to rebut, clarify, or correct under 19 CFR 351.408(c), or to measure Documents Submission Procedures; factual information already on the the adequacy of remuneration under 19 APO Procedures, 73 FR 3634 (January record, to provide an explanation CFR 351.511(a)(2), filed pursuant to 19 22, 2008). Those procedures apply to identifying the information already on CFR 351.301(c)(3) and rebuttal, administrative reviews included in this the record that the factual information clarification and correction filed seeks to rebut, clarify, or correct. The pursuant to 19 CFR 351.301(c)(3)(iv); (3) review as part of the single PRC entity of which the final rule also modified 19 CFR 351.301 comments concerning the selection of a named exporters are a part. so that, rather than providing general surrogate country and surrogate values 9 If one of the above-named companies does not time limits, there are specific time limits and rebuttal; (4) comments concerning qualify for a separate rate, all other exporters of Multilayered Wood Flooring from the PRC who based on the type of factual information U.S. Customs and Border Protection have not qualified for a separate rate are deemed to being submitted. These modifications data; and (5) quantity and value be covered by this review as part of the single PRC are effective for all segments initiated on questionnaires. Under certain entity of which the named exporters are a part. or after May 10, 2013. Please review the circumstances, the Department may 10 If one of the above-named companies does not qualify for a separate rate, all other exporters of final rule, available at http:// elect to specify a different time limit by Polyethylene Terephthalate (PET) Film from the enforcement.trade.gov/frn/2013/ PRC who have not qualified for a separate rate are 1304frn/2013-08227.txt, prior to 14 See Certification of Factual Information to deemed to be covered by this review as part of the submitting factual information in this Import Administration During Antidumping and single PRC entity of which the named exporters are Countervailing Duty Proceedings: Interim Final a part. segment. Rule, 76 FR 7491 (February 10, 2011) (‘‘Interim 11 The company listed above was misspelled in Any party submitting factual Final Rule’’), amending 19 CFR 351.303(g)(1) and the initiation notice that published on December 30, information in an antidumping duty or (2); Certification of Factual Information to Import 2013 (78 FR 79392). The correct spelling of the countervailing duty proceeding must Administration during Antidumping and company is listed in this notice. certify to the accuracy and completeness Countervailing Duty Proceedings: Supplemental 12 Interim Final Rule, 76 FR 54697 (September 2, In the initiation notice that published on 13 December 30, 2013 (78 FR 79392), the Department of that information. Parties are hereby 2011). inadvertently included Shanghai Hanhong Paper reminded that revised certification 15 See Certification of Factual Information To Co., Ltd. and Hanhong International Limited in the requirements are in effect for company/ Import Administration During Antidumping and initiation of the review of the countervailing duty government officials as well as their Countervailing Duty Proceedings, 78 FR 42678 (July order on Lightweight Thermal Paper from the PRC. 17, 2013) (‘‘Final Rule’’); see also the frequently We are not initiating a countervailing duty review representatives. Ongoing segments of asked questions regarding the Final Rule, available with respect to Shanghai Hanhong Paper Co., Ltd. at http://enforcement.trade.gov/tlei/notices/factual_ and Hanhong International Limited. 13 See section 782(b) of the Act. info_final_rule_FAQ_07172013.pdf.

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which extension requests will be Background On January 16, 2014, Bien Dong Seafood considered untimely for submissions On August 1, 2013, the Department Co., Ltd (‘‘Bien Dong Seafood’’) which are due from multiple parties published a notice of opportunity to withdrew its review request,9 and simultaneously. In such a case, the request an administrative review of the Petitioner withdrew its review request Department will inform parties in the antidumping duty order on certain with respect to Bien Dong Seafood on letter or memorandum setting forth the frozen fish fillets from the Socialist the same date.10 No other party deadline (including a specified time) by Republic of Vietnam.1 Pursuant to requested an administrative review of which extension requests must be filed requests from interested parties, the An Phu Seafood, Bien Dong Seafood, or to be considered timely. This Department initiated an administrative Vinh Hoan. modification also requires that an review with respect to 33 exporters for extension request must be made in a the period August 1, 2012 through July Partial Rescission of Administrative separate, stand-alone submission, and 31, 2013.2 On November 8, 2013, the Review clarifies the circumstances under which Department published a correction the Department will grant untimely- Pursuant to 19 CFR 351.213(d)(1), the notice to include two companies that Department will rescind an filed requests for the extension of time were inadvertently omitted from the administrative review, in whole or in limits. These modifications are effective Initiation Notice.3 The deadline for a part, if the parties that requested a for all segments initiated on or after party to withdraw a request for review review withdraw the request within 90 October 21, 2013. Please review the was December 31, 2013.4 final rule, available at http://www.gpo. As explained in the memorandum days of the date of publication of the gov/fdsys/pkg/FR-2013-09-20/html/ from the Assistant Secretary for notice of initiation. Vinh Hoan’s, Bien 2013-22853.htm, prior to submitting Enforcement and Compliance, the Dong Seafood’s, and Petitioner’s factual information in these segments. Department exercised its discretion to withdrawals of their review requests of These initiations and this notice are toll deadlines for the duration of the Vinh Hoan, Bien Dong Seafood, and An in accordance with section 751(a) of the closure of the Federal Government from Phu Seafood were submitted within the Act (19 U.S.C. 1675(a)) and 19 CFR October 1, through October 16, 2013.5 deadline set forth under 19 CFR 351.221(c)(1)(i). Thus, all of the deadlines in this 351.213(d)(1). Moreover, An Phu Dated: January 28, 2014. segment of the proceeding were Seafood,11 Bien Dong Seafood,12 and Christian Marsh, extended by 16 days. Therefore, the Vinh Hoan 13 obtained separate rates in Deputy Assistant Secretary, for Antidumping revised deadline for a party to withdraw the most recently-completed segments and Countervailing Duty Operations. a request for review was January 16, of this proceeding in which they were [FR Doc. 2014–02242 Filed 1–31–14; 8:45 am] 2013. under review. Therefore, in accordance BILLING CODE 3510–DS–P Withdrawal of Review Requests with 19 CFR 351.213(d)(1), the Department is rescinding this review of On December 27, 2013, Vinh Hoan the antidumping duty order on certain DEPARTMENT OF COMMERCE Corporation (‘‘Vinh Hoan’’) withdrew its 6 frozen fish fillets from the Socialist review request. On January 3, 2014, Republic of Vietnam with respect to An International Trade Administration Petitioner 7 withdrew its review requests Phu Seafood, Bien Dong Seafood, and with respect to nine companies, [A–552–801] Vinh Hoan. The review will continue including An Phu Seafood Corporation with respect to the 32 other firms for (‘‘An Phu Seafood’’) and Vinh Hoan.8 Certain Frozen Fish Fillets From the which a review was requested and Socialist Republic of Vietnam: Partial initiated. Rescission of Antidumping Duty 1 See Antidumping or Countervailing Duty Order, Administrative Review; 2012–2013 Finding, or Suspended Investigation; Opportunity To Request Administrative Review, 78 FR 46573 Food Import-Export Joint Stock Company, An Phu (August 1, 2013). AGENCY: Enforcement and Compliance, Seafood, Dai Thanh Seafoods Co., Ltd., Fatifish 2 See Initiation of Antidumping and Company Limited, GODACO Seafood Joint Stock Formerly Import Administration, Countervailing Duty Administrative Reviews and Company, Hoang Long Seafood Processing Co., Ltd., International Trade Administration, Request for Revocation in Part, 78 FR 60834 Hung Vuong Seafood Joint Stock Company, Nam Department of Commerce. (October 2, 2013) (‘‘Initiation Notice’’). Viet Corporation, and Vinh Hoan. 3 SUMMARY: The Department of Commerce See Initiation of Antidumping and 9 See Letter from Bien Dong Seafood regarding Countervailing Duty Administrative Reviews and Frozen Fish Fillets from the Socialist Republic of (‘‘the Department’’) is partially Request for Revocation in Part, 78 FR 67104 Vietnam: Withdrawal of Request for Administrative rescinding the administrative review of (November 8, 2013). Review—Bien Dong Seafood Co., Ltd., dated the antidumping duty order on certain 4 See Initiation Notice, 78 FR at 60835. January 16, 2014. frozen fish fillets from the Socialist 5 See Memorandum for the Record from Paul 10 See Letter from Petitioner regarding Certain Republic of Vietnam for the period Piquado, Assistant Secretary for Enforcement and Frozen Fish Fillets from the Socialist Republic of Compliance, ‘‘Deadlines Affected by the Shutdown Vietnam: Partial Withdrawal of Request for August 1, 2012, through July 31, 2013, of the Federal Government’’ (October 18, 2013). Antidumping Duty Administrative Review, dated based on the timely withdrawals of 6 See Letter from Vinh Hoan regarding Frozen January 16, 2014. certain requests for review. Fish Fillets from the Socialist Republic of Vietnam: 11 See Certain Frozen Fish Fillets From the DATES: Effective Date: February 3, 2014. Withdraw of Request for Administrative Review— Socialist Republic of Vietnam: Final Results of Vinh Hoan Corporation, dated December 27, 2013. Antidumping Duty Administrative Review and New FOR FURTHER INFORMATION CONTACT: Paul 7 Catfish Farmers of America and individual U.S. Shipper Review; 2010–2011, 78 FR 17350 (March Walker or Steven Hampton, AD/CVD catfish processors America’s Catch, Alabama 21, 2013). Operations, Office V, Enforcement and Catfish Inc. dba Harvest Select Catfish, Inc., 12 See Certain Frozen Fish Fillets From the Compliance, International Trade Heartland Catfish Company, Magnolia Processing, Socialist Republic of Vietnam: Final Results of Inc. dba Pride of the Pond, and Simmons Farm Antidumping Duty Administrative Review and Administration, Department of Raised Catfish, Inc. (hereinafter, ‘‘Petitioner’’). Partial Rescission of Seventh Antidumping Duty Commerce, 14th Street and Constitution 8 See Letter from Petitioner regarding Certain Administrative Review, 77 FR 15039 (March 14, Avenue NW., Washington, DC 20230; Frozen Fish Fillets from the Socialist Republic of 2012). telephone: (202) 482–0413 or (202) 482– Vietnam: Partial Withdrawal of Request for 13 See Certain Frozen Fish Fillets From the Antidumping Duty Administrative Review, dated Socialist Republic of Vietnam: Amended Final 0116, respectively. January 3, 2014. Petitioner withdrew their review Results of the Antidumping Duty Administrative SUPPLEMENTARY INFORMATION:; requests with respect to An Giang Agriculture and Review, 2010–2011, 78 FR 29323 (May 20, 2013).

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Assessment DEPARTMENT OF COMMERCE Enforcement and Compliance, International Trade Administration, The Department will instruct U.S. International Trade Administration U.S. Department of Commerce, 14th Customs and Border Protection (‘‘CBP’’) [C–570–913] Street and Constitution Avenue NW., to assess antidumping duties on all Washington, DC 20230, telephone: (202) appropriate entries, consistent with 19 Certain New Pneumatic Off-The-Road 482–4735. CFR 351.212(b)(1). For An Phu Seafood, Tires From the People’s Republic of Background Bien Dong Seafood, and Vinh Hoan, China: Notice of Correction to the each of which obtained separate rates in Rescission of the 2012 Countervailing Each year during the anniversary the most recently-completed segment of Duty Administrative Review month of the publication of an this proceeding in which they were antidumping or countervailing duty AGENCY: under review, antidumping duties shall Enforcement and Compliance, order, finding, or suspended Formerly Import Administration, be assessed at rates equal to the cash investigation, an interested party, as International Trade Administration, defined in section 771(9) of the Tariff deposit of estimated antidumping duties Department of Commerce. Act of 1930, as amended (‘‘the Act’’), required at the time of entry, or DATES: Effective Date: February 3, 2014. may request, in accordance with 19 CFR withdrawal from warehouse, for 351.213, that the Department of FOR FURTHER INFORMATION CONTACT: consumption, during the period August Commerce (‘‘the Department’’) conduct 1, 2012, through July 31, 2013, in David Lindgren, Enforcement and Compliance, AD/CVD Operations, an administrative review of that accordance with 19 CFR antidumping or countervailing duty Office VII, International Trade 351.212(c)(1)(i). The Department order, finding, or suspended Administration, U.S. Department of intends to issue appropriate assessment investigation. Commerce, 14th Street and Constitution instruction to CBP 15 days after All deadlines for the submission of Avenue NW., Washington, DC 20230; publication of this notice. comments or actions by the Department telephone: (202) 482–3870. discussed below refer to the number of Notifications SUPPLEMENTARY INFORMATION: On calendar days from the applicable January 17, 2014, the Department of starting date. This notice serves as a final reminder Commerce published the rescission of to importers of their responsibility the 2012 administrative review of the Respondent Selection under 19 CFR 351.402(f)(2) to file a countervailing duty order on certain In the event the Department limits the certificate regarding the reimbursement new pneumatic off-the-road tires from number of respondents for individual of antidumping duties prior to the People’s Republic of China.1 examination for administrative reviews liquidation of the relevant entries Subsequent to publication, we initiated pursuant to requests made for during this review period. Failure to identified an inadvertent error with the the orders identified below, the comply with this requirement could Rescission. Specifically, the Rescission Department intends to select result in the presumption that incorrectly listed the period of review respondents based on U.S. Customs and reimbursement of antidumping duties (POR) as January 1, 2012, through Border Protection (‘‘CBP’’) data for U.S. occurred and the subsequent assessment December 31, 2013. The correct POR is imports during the period of review. We of double antidumping duties. January 1, 2012, through December 31, intend to release the CBP data under This notice also serves as a final 2012. Administrative Protective Order This notice serves as a correction. reminder to parties subject to the (‘‘APO’’) to all parties having an APO administrative protective order (‘‘APO’’) Dated: January 27, 2014. within five days of publication of the of their responsibility concerning the Christian Marsh, initiation notice and to make our disposition of proprietary information Deputy Assistant Secretary for Antidumping decision regarding respondent selection disclosed under an APO in accordance and Countervailing Duty Operations. within 21 days of publication of the initiation Federal Register notice. with 19 CFR 351.305(a)(3). Timely [FR Doc. 2014–02221 Filed 1–31–14; 8:45 am] Therefore, we encourage all parties written notification of the return or BILLING CODE 3510–DS–P interested in commenting on respondent destruction of APO materials, or selection to submit their APO conversion to judicial protective order, DEPARTMENT OF COMMERCE applications on the date of publication is hereby requested. Failure to comply of the initiation notice, or as soon with the regulations and terms of an International Trade Administration thereafter as possible. The Department APO is a violation which is subject to invites comments regarding the CBP sanction. Antidumping or Countervailing Duty data and respondent selection within This notice is issued and published in Order, Finding, or Suspended five days of placement of the CBP data accordance with section 777(i)(1) of the Investigation; Opportunity To Request on the record of the review. Tariff Act of 1930, as amended, and 19 Administrative Review In the event the Department decides it is necessary to limit individual CFR 351.213(d)(4). AGENCY: Enforcement and Compliance, formerly Import Administration, examination of respondents and Dated: January 27, 2014. conduct respondent selection under Gary Taverman, International Trade Administration, Department of Commerce. section 777A(c)(2) of the Act: Senior Advisor, for Antidumping and In general, the Department has found Countervailing Duty Operations. FOR FURTHER INFORMATION CONTACT: that determinations concerning whether Brenda E. Waters, Office of AD/CVD [FR Doc. 2014–02194 Filed 1–31–14; 8:45 am] particular companies should be Operations, Customs Liaison Unit, BILLING CODE 3510–DS–P ‘‘collapsed’’ (i.e., treated as a single entity for purposes of calculating 1 See Certain New Pneumatic Off-The-Road Tires from the People’s Republic of China: Rescission of antidumping duty rates) require a Countervailing Duty Administrative Review; 2012, substantial amount of detailed 79 FR 3177 (January 17, 2014) (Rescission). information and analysis, which often

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require follow-up questions and the Quantity and Value Questionnaire discretion to extend this 90-day analysis. Accordingly, the Department for purposes of respondent selection, in deadline, interested parties are advised will not conduct collapsing analyses at general each company must report that, with regard to reviews requested the respondent selection phase of this volume and value data separately for on the basis of anniversary months on review and will not collapse companies itself. Parties should not include data or after February 2014, the Department at the respondent selection phase unless for any other party, even if they believe does not intend to extend the 90-day there has been a determination to they should be treated as a single entity deadline unless the requestor collapse certain companies in a with that other party. If a company was demonstrates that an extraordinary previous segment of this antidumping collapsed with another company or circumstance has prevented it from proceeding (i.e., investigation, companies in the most recently submitting a timely withdrawal request. administrative review, new shipper completed segment of this proceeding Determinations by the Department to review or changed circumstances where the Department considered extend the 90-day deadline will be review). For any company subject to this collapsing that entity, complete quantity made on a case-by-case basis. review, if the Department determined, and value data for that collapsed entity The Department is providing this or continued to treat, that company as must be submitted. notice on its Web site, as well as in its collapsed with others, the Department ‘‘Opportunity To Request Deadline for Withdrawal of Request for will assume that such companies Administrative Review’’ notices, so that Administrative Review continue to operate in the same manner interested parties will be aware of the and will collapse them for respondent Pursuant to 19 CFR 351.213(d)(1), a manner in which the Department selection purposes. Otherwise, the party that has requested a review may intends to exercise its discretion in the Department will not collapse companies withdraw that request within 90 days of future. for purposes of respondent selection. the date of publication of the notice of Opportunity To Request A Review: Parties are requested to (a) identify initiation of the requested review. The Not later than the last day of February which companies subject to review regulation provides that the Department 2014,1 interested parties may request previously were collapsed, and (b) may extend this time if it is reasonable administrative review of the following provide a citation to the proceeding in to do so. In order to provide parties orders, findings, or suspended which they were collapsed. Further, if additional certainty with respect to investigations, with anniversary dates in companies are requested to complete when the Department will exercise its February for the following periods:

Period of review

Antidumping Duty Proceedings Brazil: Frozen Warmwater Shrimp, A–351–838 ...... 2/1/13–1/31/14 Stainless Steel Bar, A–351–825 ...... 2/1/13–1/31/14 France: Uranium, A–427–818 ...... 2/1/13–1/31/14 India: Certain Cut-to-Length Carbon-Quality Steel Plate, A–533–817 ...... 2/1/13–1/31/14 Certain Preserved Mushrooms, A–533–813 ...... 2/1/13–1/31/14 Frozen Warmwater Shrimp, A–533–840 ...... 2/1/13–1/31/14 Stainless Steel Bar, A–533–810 ...... 2/1/13–1/31/14 Indonesia: Certain Cut-to-Length Carbon-Quality Steel Plate, A–560–805 ...... 2/1/13–1/31/14 Certain Preserved Mushrooms, A–560–802 ...... 2/1/13–1/31/14 Italy: Stainless Steel Butt-Weld Pipe Fittings, A–475–828 ...... 2/1/13–1/31/14 Japan: Carbon Steel Butt-Weld Pipe Fittings, A–588–602 ...... 2/1/13–1/31/14 Stainless Steel Bar, A–588–833 ...... 2/1/13–1/31/14 Malaysia: Stainless Steel Butt-Weld Pipe Fittings, A–557–809 ...... 2/1/13–1/31/14 Mexico: Large Residential Washers, A–201–842 ...... 8/3/12–1/31/14 Phlippines: Stainless Steel But-Weld Pipe Fittings, A–565–801 ...... 2/1/13–1/31/14 Republic of Korea: Certain-Cut-to-Length Carbon-Quality Steel Plate, A–580–836 ...... 2/1/13–1/31/14 Large Residential Washers, A–580–868 ...... 8/3/12–1/31/14 Socialist Republic of Vietnam: Frozen Warmwater Shrimp, A–552–802 ...... 2/1/13–1/31/14 Steel Wire Garment Hangers, A–552–812 ...... 8/2/12–1/31/14 Utility Scale Wind Towers, A–552–814 ...... 2/13/13–1/31/14 Thailand: Frozen Warmwater Shrimp, A–549–822 ...... 2/1/13–1/31/14 The People’s Republic of China: Certain Preserved Mushrooms, A–570–851 ...... 2/1/13–1/31/14 Folding Metal Tables and Chairs 2, A–570–868 ...... 6/1/12–11/5/12 Frozen Warmwater Shrimp, A–570–893 ...... 2/1/13–1/31/14 Heavy Forged Hand Tools, With or Without Handles, A–570–803 ...... 2/1/13–1/31/14 Small Diameter Graphite Electrodes, A–570–929 ...... 2/1/13–1/31/14 Uncovered Innerspring Units, A–570–928 ...... 2/1/13–1/31/14 Utility Scale Wind Towers, A–570–981 ...... 2/13/13–1/31/13

1 Or the next business day, if the deadline falls 2 On June 3, 2013 (78 FR 33061), this order was for June cases. This order has been revoked effective on a weekend, federal holiday or any other day inadvertently omitted from the opportunity notice 11/6/2012. when the Department is closed.

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Period of review

Countervailing Duty Proceedings India: Certain Cut-to-Length Carbon-Quality Steel Plate, C–533–818 ...... 1/1/13–12/31/13 Prestressed Concrete Steel Wire Strand, C–533–829 ...... 1/1/13–12/31/13 Indonesia: Certain Cut-to-Length Carbon-Quality Steel Plate, C–560–806 ...... 1/1/13–12/31/13 Republic of Korea: Certain Cut-to-Length Carbon-Quality Steel Plate, C–580–837 ...... 1/1/13–12/31/13 Large Residential Washers, C–580–869 ...... 6/5/12–12/31/13 Socialist Republic of Vietnam: Steel Wire Garment Hangers, C–552–813 ...... 6/4/12–12/31/13 The People’s Republic of China: Utility Scale Wind Towers, C–570–982 ...... 2/13/13–12/31/13 Suspension Agreements None.

In accordance with 19 CFR Proceedings: Assessment of were not subject to the review and the 351.213(b), an interested party as Antidumping Duties, 76 FR 65694 rate for the NME entity is not subject to defined by section 771(9) of the Act may (October 24, 2011) the Department has change as a result of that review request in writing that the Secretary clarified its practice with respect to the (although the rate for the individual conduct an administrative review. For collection of final antidumping duties exporter may change as a function of the both antidumping and countervailing on imports of merchandise where finding that the exporter is part of the duty reviews, the interested party must intermediate firms are involved. The NME entity). specify the individual producers or public should be aware of this Following initiation of an exporters covered by an antidumping clarification in determining whether to antidumping administrative review finding or an antidumping or request an administrative review of when there is no review requested of the countervailing duty order or suspension merchandise subject to antidumping NME entity, the Department will agreement for which it is requesting a findings and orders.3 instruct CBP to liquidate entries for all review. In addition, a domestic Further, as explained in Antidumping exporters not named in the initiation interested party or an interested party Proceedings: Announcement of Change notice, including those that were described in section 771(9)(B) of the Act in Department Practice for Respondent suspended at the NME entity rate. must state why it desires the Secretary Selection in Antidumping Duty All requests must be filed to review those particular producers or Proceedings and Conditional Review of electronically in Enforcement and exporters. If the interested party intends the Nonmarket Economy Entity in NME Compliance’s Antidumping and for the Secretary to review sales of Antidumping Duty Proceedings, 78 FR Countervailing Duty Centralized merchandise by an exporter (or a 65963 (November 4, 2013), the Electronic Service System (‘‘IA producer if that producer also exports Department has clarified its practice ACCESS’’) on the IA ACCESS Web site merchandise from other suppliers) with regard to the conditional review of at http://iaaccess.trade.gov.5 Further, in which were produced in more than one the non-market economy (NME) entity accordance with 19 CFR 351.303(f)(l)(i), country of origin and each country of in administrative reviews of a copy of each request must be served origin is subject to a separate order, then antidumping duty orders. The on the petitioner and each exporter or the interested party must state Department will no longer consider the producer specified in the request. specifically, on an order-by-order basis, NME entity as an exporter conditionally The Department will publish in the which exporter(s) the request is subject to administrative reviews. Federal Register a notice of ‘‘Initiation intended to cover. Accordingly, the NME entity will not be of Administrative Review of Please note that, for any party the under review unless the Department Antidumping or Countervailing Duty Department was unable to locate in specifically receives a request for, or Order, Finding, or Suspended prior segments, the Department will not self-initiates, a review of the NME Investigation’’ for requests received by accept a request for an administrative entity.4 In administrative reviews of the last day of February 2014. If the review of that party absent new antidumping duty orders on Department does not receive, by the last information as to the party’s location. merchandise from NME countries where day of February 2014, a request for Moreover, if the interested party who a review of the NME entity has not been review of entries covered by an order, files a request for review is unable to initiated, but where an individual finding, or suspended investigation locate the producer or exporter for exporter for which a review was listed in this notice and for the period which it requested the review, the initiated does not qualify for a separate identified above, the Department will interested party must provide an rate, the Department will issue a final instruct CBP to assess antidumping or explanation of the attempts it made to decision indicating that the company in countervailing duties on those entries at locate the producer or exporter at the question is part of the NME entity. a rate equal to the cash deposit of (or same time it files its request for review, However, in that situation, because no bond for) estimated antidumping or in order for the Secretary to determine review of the NME entity was countervailing duties required on those if the interested party’s attempts were conducted, the NME entity’s entries entries at the time of entry, or reasonable, pursuant to 19 CFR withdrawal from warehouse, for 351.303(f)(3)(ii). 3 See also the Enforcement and Compliance Web consumption and to continue to collect As explained in Antidumping and site at http://trade.gov/enforcement/. the cash deposit previously ordered. Countervailing Duty Proceedings: 4 In accordance with 19 CFR 351.213(b)(1), parties Assessment of Antidumping Duties, 68 should specify that they are requesting a review of 5 See Antidumping and Countervailing Duty entries from exporters comprising the entity, and to Proceedings: Electronic Filing Procedures; FR 23954 (May 6, 2003), and Non- the extent possible, include the names of such Administrative Protective Order Procedures, 76 FR Market Economy Antidumping exporters in their request. 39263 (July 6, 2011).

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For the first administrative review of DEPARTMENT OF COMMERCE International Trade Commission any order, there will be no assessment automatically initiate and conduct a of antidumping or countervailing duties International Trade Administration review to determine whether revocation on entries of subject merchandise of a countervailing or antidumping duty entered, or withdrawn from warehouse, Antidumping or Countervailing Duty order or termination of an investigation Order, Finding, or Suspended for consumption during the relevant suspended under section 704 or 734 of Investigation; Advance Notification of provisional-measures ‘‘gap’’ period of the Act would be likely to lead to Sunset Reviews the order, if such a gap period is continuation or recurrence of dumping applicable to the period of review. AGENCY: Enforcement and Compliance, or a countervailable subsidy (as the case This notice is not required by statute Formerly Import Administration, may be) and of material injury. but is published as a service to the International Trade Administration, international trading community. Upcoming Sunset Reviews for March Department of Commerce. 2014 Dated: January 28, 2014. Background Christian Marsh, The following Sunset Reviews are Deputy Assistant Secretary, for Antidumping Every five years, pursuant to section scheduled for initiation in March 2014 and Countervailing Duty Operations. 751(c) of the Tariff Act of 1930, as and will appear in that month’s Notice [FR Doc. 2014–02228 Filed 1–31–14; 8:45 am] amended (‘‘the Act’’), the Department of of Initiation of Five-Year Sunset Review BILLING CODE 3510–DS–P Commerce (‘‘the Department’’) and the (‘‘Sunset Review’’).

Department contact

Antidumping Duty Proceedings 1-Hydroxyethylidene-1,1-Diphosphonic Acid (HEDP) from India (A–533–847) (1st Review) ...... Charles Riggle (202) 482–0650. 1-Hydroxyethylidene-1,1-Diphosphonic Acid (HEDP) from China (A–570–934) (1st Review) ...... Charles Riggle (202) 482–0650. Frontseating Service Valves from China (A–570–933) (1st Review) ...... David Goldberger (202) 482–4136. Malleable Cast Iron Pipe Fittings from China (A–570–881) (2nd Review) ...... David Goldberger (202) 482–4136. Polyvinyl Alcohol from China (A–570–879) (2nd Review) ...... David Goldberger (202) 482–4136. Steel Threaded Rod from China (A–570–932) (1st Review) ...... Charles Riggle (202) 482–0650. Polyvinyl Alcohol from Japan (A–588–861) (2nd Review) ...... David Goldberger (202) 482–4136. Polyvinyl Alcohol from Republic of Korea (A–580–850) (2nd Review) ...... David Goldberger (202) 482–4136.

Countervailing Duty Proceedings later than 30 days after the date of Act of 1930, as amended (‘‘the Act’’). initiation. Based on the notice of intent to No Sunset Review of countervailing This notice is not required by statute participate and adequate substantive duty orders is scheduled for initiation in but is published as a service to the response filed by the domestic March 2014. international trading community. interested party, and the lack of Suspended Investigations Dated: January 24, 2014. response from any respondent No Sunset Review of suspended Christian Marsh, interested party, the Department investigations is scheduled for initiation Deputy Assistant Secretary, for Antidumping conducted expedited (120-day) sunset in March 2014. and Countervailing Duty Operations. reviews of these AD orders, pursuant to section 751(c)(3)(B) of the Act and 19 The Department’s procedures for the [FR Doc. 2014–02227 Filed 1–31–14; 8:45 am] CFR 351.218(e)(1)(ii)(C)(2). As a result conduct of Sunset Reviews are set forth BILLING CODE 3510–DS–P in 19 CFR 351.218. The Notice of of these sunset reviews, the Department Initiation of Five-Year (‘‘Sunset’’) finds that revocation of the AD orders DEPARTMENT OF COMMERCE Reviews provides further information would likely lead to continuation or recurrence of dumping at the levels regarding what is required of all parties International Trade Administration to participate in Sunset Reviews. indicated in the ‘‘Final Results of Sunset Pursuant to 19 CFR 351.103(c), the [A–570–919; A–602–806] Reviews’’ section of this notice. Department will maintain and make DATES: Effective Date: February 3, 2014. available a service list for these Electrolytic Manganese Dioxide From proceedings. To facilitate the timely Australia and the People’s Republic of FOR FURTHER INFORMATION CONTACT: Lori preparation of the service list(s), it is China: Final Results of the Expedited Apodaca or Howard Smith, AD/CVD requested that those seeking recognition First Sunset Reviews of the Operations, Office IV, Enforcement and as interested parties to a proceeding Antidumping Duty Orders Compliance, International Trade contact the Department in writing AGENCY: Enforcement and Compliance, Administration, U.S. Department of within 10 days of the publication of the Formerly Import Administration, Commerce, 14th Street and Constitution Notice of Initiation. International Trade Administration, Avenue NW., Washington, DC 20230; Please note that if the Department Department of Commerce. telephone: (202) 482–4551 or (202) 482– receives a Notice of Intent to Participate SUMMARY: On September 3, 2013, the 5193, respectively. from a member of the domestic industry Department of Commerce (‘‘the SUPPLEMENTARY INFORMATION: within 15 days of the date of initiation, Department’’) initiated the first sunset the review will continue. Thereafter, reviews of the antidumping duty (‘‘AD’’) Background any interested party wishing to orders on electrolytic manganese participate in the Sunset Review must dioxide (‘‘EMD’’) from Australia and the On August 14 and 18, 2008, the provide substantive comments in People’s Republic of China (‘‘PRC’’) Department published the AD orders on response to the notice of initiation no pursuant to section 751(c) of the Tariff EMD from Australia and the PRC,

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respectively.1 On September 3, 2013, Analysis of Comments Received Notification Regarding Administrative the Department published the notice of Protective Orders initiation of the first sunset reviews of A complete discussion of all issues the AD orders on EMD from Australia raised in these sunset reviews is This notice also serves as the only and the PRC, pursuant to section 751(c) provided in the accompanying Issues reminder to parties subject to of the Act.2 On September 12, 2013, and Decision Memorandum, which is administrative protective orders pursuant to 19 CFR 351.218(d)(1), the hereby adopted by this notice.4 The (‘‘APO’’) of their responsibility Department received timely and issues discussed in the I&D concerning the return or destruction of complete notices of intent to participate Memorandum include the likelihood of proprietary information disclosed under in the sunset reviews for both orders continuation or recurrence of dumping APO in accordance with 19 CFR from Erachem Comilog, Inc. and Tronox and the magnitude of the dumping 351.305. Timely notification of the LLC (collectively ‘‘Domestic margins likely to prevail if the orders return or destruction of APO materials or conversion to judicial protective Producers’’). On October 2, 2013, are revoked. The I&D Memorandum is a orders is hereby requested. Failure to pursuant to 19 CFR 351.218(d)(3), public document and is on file comply with the regulations and terms Domestic Producers filed a timely and electronically via Enforcement and adequate substantive response for both of an APO is a violation which is subject Compliance’s Antidumping and to sanction. orders. The Department did not receive Countervailing Duty Centralized substantive responses from any We are issuing and publishing the Electronic Service System (‘‘IA respondent interested party. As a result, results and notice in accordance with ACCESS’’). Access to IA ACCESS is pursuant to section 751(c)(3)(B) of the sections 751(c), 752(c), and 777(i)(1) of available in the Central Records Unit, Act and 19 CFR 351.218(e)(1)(ii)(C)(2), the Act and 19 CFR 351.218. room 7046 of the main Department of the Department conducted expedited Dated: January 16, 2014. (120-day) sunset reviews of the AD Commerce building. In addition, a Christian Marsh, orders on EMD from Australia and the complete version of the I&D PRC. Memorandum can be accessed at http:// Deputy Assistant Secretary, for Antidumping As explained in the memorandum enforcement.trade.gov/frn/. The signed and Countervailing Duty Operations. from the Assistant Secretary for I&D Memorandum and the electronic [FR Doc. 2014–02240 Filed 1–31–14; 8:45 am] Enforcement and Compliance, the versions of the I&D Memorandum are BILLING CODE 3510–DS–P Department has exercised its discretion identical in content. to toll deadlines for the duration of the closure of the Federal Government from Final Results of Sunset Reviews DEPARTMENT OF COMMERCE 3 October 1, through October 16, 2013. The Department determines that International Trade Administration Therefore, all deadlines in this segment revocation of the AD orders on EMD of the proceeding have been extended from Australia and the PRC would be Initiation of Five-Year (‘‘Sunset’’) by 16 days. The revised deadline for the Review final results of this sunset review is now likely to lead to continuation or recurrence of dumping, with the January 21, 2014. AGENCY: Enforcement and Compliance, following dumping margins likely to Formerly Import Administration, Scope of the Orders prevail: International Trade Administration, The merchandise covered by these Department of Commerce. orders includes all manganese dioxide Weighted- average SUMMARY: In accordance with section (MnO[2]) that has been manufactured in Exporter/producer percentage 751(c) of the Tariff Act of 1930, as an electrolysis process, whether in margin powder, chip, or plate form. Excluded amended (‘‘the Act’’), the Department of Commerce (‘‘the Department’’) is from the scope are natural manganese PRC dioxide (NMD) and chemical manganese automatically initiating five-year dioxide (CMD). The merchandise Guizhou Redstar Developing Im- reviews (‘‘Sunset Reviews’’) of the subject to these orders is classified in port & Export Company, Ltd./ antidumping and countervailing duty the Harmonized Tariff Schedule of the Guizhou Redstar Developing (‘‘AD/CVD’’) orders listed below. The United States (‘‘HTSUS’’) at subheading Dalong Manganese lndustrial International Trade Commission (‘‘the 2820.10.00.00. While the HTSUS Co., Ltd...... 149.92 Commission’’) is publishing subheading is provided for convenience PRC–Wide Entity (including concurrently with this notice its notice Xiangtan Electrochemical Sci- of Institution of Five-Year Review which and customs purposes, the written entific Ltd.) ...... 149.92 description of the scope of these orders covers the same orders. is dispositive. Australia DATES: Effective Date: February 1, 2014. FOR FURTHER INFORMATION CONTACT: The 1 See Electrolytic Manganese Dioxide From the Delta Australia Pty Ltd...... 83.66 Department official identified in the People’s Republic of China: Final Determination of All Others ...... 83.66 Sales at Less Than Fair Value, 73 FR 48195 (August Initiation of Review section below at 18, 2008) (‘‘PRC Final Determination’’); see also AD/CVD Operations, Enforcement and Notice of Final Determination of Sales at Less Than Compliance, International Trade Fair Value and Termination of Critical- 4 See ‘‘Issues and Decision Memorandum for the Circumstances Investigation: Electrolytic Expedited First Sunset Reviews of the Antidumping Administration, U.S. Department of Manganese Dioxide from Australia, 73 FR 47586 Duty Orders on Electrolytic Manganese Dioxide Commerce, 14th Street and Constitution (August 14, 2008) (‘‘Australia Final Avenue NW., Washington, DC 20230. Determination’’). from Australia and the People’s Republic of China,’’ from Abdelali Elouaradia, Director, Office IV, 2 See Initiation of Five-Year (‘‘Sunset’’) Review, 78 For information from the Commission FR 54237 (September 3, 2013). Antidumping and Countervailing Duty Operations, contact Mary Messer, Office of 3 See Memorandum for the Record from Paul to Christian Marsh, Deputy Assistant Secretary for Investigations, U.S. International Trade Piquado, Assistant Secretary for Enforcement and Antidumping and Countervailing Duty Operations, Commission at (202) 205–3193. Compliance, ‘‘Deadlines Affected by the Shutdown dated concurrently with this notice (‘‘I&D of the Federal Government’’ (October 18, 2013). Memorandum’’). SUPPLEMENTARY INFORMATION:

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Background Guidance on methodological or Modification, 77 FR 8101 (February 14, The Department’s procedures for the analytical issues relevant to the 2012). Department’s conduct of Sunset conduct of Sunset Reviews are set forth Initiation of Review in its Procedures for Conducting Five- Reviews is set forth in Antidumping Year (‘‘Sunset’’) Reviews of Proceedings: Calculation of the In accordance with 19 CFR Antidumping and Countervailing Duty Weighted-Average Dumping Margin and 351.218(c), we are initiating Sunset Orders, 63 FR 13516 (March 20, 1998) Assessment Rate in Certain Reviews of the following antidumping and 70 FR 62061 (October 28, 2005). Antidumping Duty Proceedings; Final and countervailing duty orders:

DOC Case No. ITC Case No. Country Product Department contact

A–570–880 ...... 731–TA–1020 ...... China ...... Barium Carbonate (2nd Review) ...... Charles Riggle, (202) 482–0650. A–570–930 ...... 731–TA–1144 ...... China ...... Circular Welded Austenitic Stainless Charles Riggle, (202) 482–0650. Pressure Pipe (1st Review). C–570–931 ...... 701–TA–454 ...... China ...... Circular Welded Austenitic Stainless David Goldberger, (202) 482–4136. Pressure Pipe (1st Review). A–570–882 ...... 731–TA–1022 ...... China ...... Refined Brown Aluminum Oxide (2nd David Goldberger, (202) 482–4136. Review).

Filing Information not comply with the revised segment. To the extent that other certification requirements. regulations govern the submission of As a courtesy, we are making On April 10, 2013, the Department factual information in a segment (such information related to sunset published Definition of Factual as 19 CFR 351.218), these time limits proceedings, including copies of the Information and Time Limits for will continue to be applied. pertinent statute and Department’s Submission of Factual Information: On September 20, 2013, the regulations, the Department’s schedule Final Rule, 78 FR 21246 (April 10, Department modified its regulation for Sunset Reviews, a listing of past 2013), which modified two regulations concerning the extension of time limits revocations and continuations, and related to antidumping and for submissions in antidumping and current service lists, available to the countervailing duty proceedings: the public on the Department’s Web site at definition of factual information (19 countervailing duty proceedings: the following address: ‘‘http:// CFR 351.102(b)(21), and the time limits Extension of Time Limits, 78 FR 57790 enforcement.trade.gov/sunset/.’’ All for the submission of factual (September 20, 2013). The modification submissions in these Sunset Reviews information (19 CFR 351.301). The final clarifies that parties may request an must be filed in accordance with the rule identifies five categories of factual extension of time limits before a time Department’s regulations regarding information in 19 CFR 351.102(b)(21), limit established under part 351 of the format, translation, and service of which are summarized as follows: (i) Department’s regulations expires, or as documents. These rules, including Evidence submitted in response to otherwise specified by the Secretary. In electronic filing requirements via questionnaires; (ii) evidence submitted general, an extension request will be Enforcement and Compliance’s in support of allegations; (iii) publicly considered untimely if it is filed after Antidumping and Countervailing Duty available information to value factors the time limit established under part Centralized Electronic Service System under 19 CFR 351.408(c) or to measure 351 expires. For submissions which are (‘‘IA ACCESS’’), can be found at 19 CFR the adequacy of remuneration under 19 due from multiple parties 351.303.1 CFR 351.511(a)(2); (iv) evidence placed simultaneously, an extension request on the record by the Department; and (v) will be considered untimely if it is filed This notice serves as a reminder that after 10:00 a.m. on the due date. Under any party submitting factual information evidence other than factual information described in (i)–(iv). The final rule certain circumstances, the Department in an AD/CVD proceeding must certify requires any party, when submitting may elect to specify a different time to the accuracy and completeness of that factual information, to specify under limit by which extension requests will information.2 Parties are hereby which subsection of 19 CFR be considered untimely for submissions reminded that revised certification 351.102(b)(21) the information is being which are due from multiple parties requirements are in effect for company/ submitted and, if the information is simultaneously. In such a case, the government officials as well as their submitted to rebut, clarify, or correct Department will inform parties in the representatives in all AD/CVD factual information already on the letter or memorandum setting forth the investigations or proceedings initiated record, to provide an explanation deadline (including a specified time) by on or after August 16, 2013.3 The identifying the information already on which extension requests must be filed formats for the revised certifications are the record that the factual information to be considered timely. This provided at the end of the Final Rule. seeks to rebut, clarify, or correct. The modification also requires that an The Department intends to reject factual final rule also modified 19 CFR 351.301 extension request must be made in a submissions if the submitting party does so that, rather than providing general separate, stand-alone submission, and time limits, there are specific time limits clarifies the circumstances under which 1 See also Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; based on the type of factual information the Department will grant untimely- Administrative Protective Order Procedures, 76 FR being submitted. These modifications filed requests for the extension of time 39263 (July 6, 2011). are effective for all segments initiated on limits. These modifications are effective 2 See section 782(b) of the Act. or after May 10, 2013. Please review the for all segments initiated on or after 3 See Certification of Factual Information To final rule, available at http:// October 21, 2013. Please review the Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July enforcement.trade.gov/frn/2013/ final rule, available at http:// 17, 2013) (‘‘Final Rule’’) (amending 19 CFR 1304frn/2013-08227.txt, prior to www.gpo.gov/fdsys/pkg/FR-2013–09-20/ 351.303(g)). submitting factual information in this html/2013-22853.htm, prior to

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submitting factual information in these conduct of Sunset Reviews. Please Scope Rulings Made Between July 1, segments. consult the Department’s regulations at 2013, and September 30, 2013 Pursuant to 19 CFR 351.103(d), the 19 CFR part 351 for definitions of terms Italy Department will maintain and make and for other general information available a service list for these concerning antidumping and A–475–818 and C–475–819: Certain proceedings. To facilitate the timely countervailing duty proceedings at the Pasta From Italy preparation of the service list(s), it is Department. Requestor: Valdigrano di Flavio requested that those seeking recognition This notice of initiation is being Pagani S.r.L (Valdigrano); Valdigrano’s as interested parties to a proceeding product made from dough that contains contact the Department in writing published in accordance with section 751(c) of the Act and 19 CFR 351.218(c). 2.5 percent egg white, by weight, is within 10 days of the publication of the within the scope of the antidumping Notice of Initiation. Dated: January 24, 2014. and countervailing duty orders because Because deadlines in Sunset Reviews Christian Marsh, Valigrano’s product contains less than can be very short, we urge interested parties to apply for access to proprietary Deputy Assistant Secretary, for Antidumping two percent egg white content; July 18, information under administrative and Countervailing Duty Operations. 2013. protective order (‘‘APO’’) immediately [FR Doc. 2014–02226 Filed 1–31–14; 8:45 am] A–475–703: Granular following publication in the Federal BILLING CODE 3510–DS–P Polytetrafluoroethylene Resin From Italy Register of this notice of initiation by Requestor: Industrial Plastics and filing a notice of intent to participate. Machine, Inc.; certain granular The Department’s regulations on DEPARTMENT OF COMMERCE polytetrafluoroethylene resin products submission of proprietary information that are processed in Italy using raw International Trade Administration and eligibility to receive access to unfilled granular business proprietary information under Notice of Scope Rulings polytetrafluoroethylene resin from APO can be found at 19 CFR 351.304– Russia or the People’s Republic of 306. AGENCY: Enforcement and Compliance, China, and in some cases also processed Information Required From Interested Formerly Import Administration, using glass fiber from Japan, are outside Parties International Trade Administration, the scope of the antidumping duty order because record evidence indicates that Domestic interested parties, as Department of Commerce. these products do not undergo defined in section 771(9)(C), (D), (E), (F), DATES: Effective Date: February 3, 2014. substantial transformation in Italy; July and (G) of the Act and 19 CFR 17, 2013. 351.102(b), wishing to participate in a SUMMARY: The Department of Commerce Sunset Review must respond not later (‘‘Department’’) hereby publishes a list People’s Republic of China than 15 days after the date of of scope rulings and anticircumvention publication in the Federal Register of determinations made between July 1, A–570–967 and C–570–968: Aluminum this notice of initiation by filing a notice 2013, and September 30, 2013. We Extrusions From the People’s Republic of intent to participate. The required intend to publish future lists after the of China contents of the notice of intent to close of the next calendar quarter. Requestor: Port-A-Cool LLC.; Port-A- participate are set forth at 19 CFR Cool’s Cyclone-model-specific louver FOR FURTHER INFORMATION CONTACT: 351.218(d)(1)(ii). In accordance with the assemblies are outside the scope of the Department’s regulations, if we do not Brenda E. Waters, AD/CVD Operations, order because the louvers in question, as receive a notice of intent to participate Customs Liaison Unit, Enforcement and imported, each contain all of the from at least one domestic interested Compliance, International Trade components of a louver (including non- party by the 15-day deadline, the Administration, U.S. Department of aluminum extrusion parts) permanently Department will automatically revoke Commerce, 14th Street and Constitution assembled, completed, and ready for the order without further review.4 Avenue NW., Washington, DC 20230; use. Moreover, the louvers are a If we receive an order-specific notice telephone: 202–482–4735. complementary finished product that of intent to participate from a domestic SUPPLEMENTARY INFORMATION:; work in conjunction with the Cyclone interested party, the Department’s air cooling system to direct airflow, but regulations provide that all parties Background are not essential to the air cooling wishing to participate in a Sunset system itself; September 9, 2013. Review must file complete substantive The Department’s regulations provide that the Secretary will publish in the A–570–967 and C–570–968: Aluminum responses not later than 30 days after Extrusions From the People’s Republic Federal Register a list of scope rulings the date of publication in the Federal of China Register of this notice of initiation. The on a quarterly basis.1 Our most recent required contents of a substantive notification of scope rulings was Requestor: Law St. Enterprises, LLC.; response, on an order-specific basis, are published on September 27, 2013.2 This its disappearing screens are within the set forth at 19 CFR 351.218(d)(3). Note current notice covers all scope rulings scope of the antidumping and that certain information requirements and anticircumvention determinations countervailing duty orders because they differ for respondent and domestic made by Enforcement and Compliance are composed of covered aluminum parties. Also, note that the Department’s between July 1, 2013, and September 30, extrusions and further do not meet the information requirements are distinct 2013, inclusive. As described below, exclusion for finished goods kits because they do not enter the United from the Commission’s information subsequent lists will follow after the States as a packaged combination of requirements. Please consult the close of each calendar quarter. Department’s regulations for parts to fully assemble a disappearing screen; September 12, 2013. information regarding the Department’s 1 See 19 CFR 351.225(o). 2 See Notice of Scope Rulings, 78 FR 59653 A–570–909: Certain Steel Nails From the 4 See 19 CFR 351.218(d)(1)(iii). (September 27, 2013). People’s Republic of China

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Requestor: Cobra Anchors Co. Ltd.; A–570–964: Seamless Refined Copper the physical characteristics of the zinc anchors are within the scope of the Pipe and Tube From the People’s merchandise subject to the order; antidumping duty order under k(1) Republic of China August 6, 2013 (final). because the record reflects that the Requestor: Luvata Tube (Zhongshan) Anticircumvention Determinations International Trade Commission Ltd.; Certain Luvata’s Unilloy tubes (by Made Between July 1, 2013, and included zinc anchors as an example of model number) are outside the scope of September 30, 2013: the product covered by the original the PRC seamless pipe order because the People’s Republic of China investigation; September 19, 2013. nickel content of Unilloy tubes exceeds A–570–979 and C–570–980: Crystalline the limitations established by the A–570–929: Small Diameter Graphite Silicon Photovoltaic Cells, Whether or definition of refined copper; September Electrodes From the People’s Republic Not Assembled Into Modules, From the 16, 2013. of China People’s Republic of China A–570–918: Steel Wire Garment Hangers Requestor: SGL Carbon LLC and Requestor: OYAMA Life Impact From the People’s Republic of China Superior Graphite Co.; Imports from the Energy Co. Ltd.; solar cells in the Requester: Whitmor Inc.; space-saving People’s Republic of China (PRC) of OY340–XA Hybrid Solar Tablet Charger lingerie and accessory hangers are graphite electrodes, produced and/or are within the scope of the antidumping outside the scope of the antidumping exported by Sinosteel Jilin Carbon Co., duty and countervailing duty orders duty order because they are Ltd. and Jilin Carbon Import & Export because the device does not meet the manufactured and used in manners Company, with an actual or nominal requirements of the exclusionary distinct from subject merchandise. diameter of 17 inches, and otherwise language in the scope; July 24, 2013. Specifically, these hangers are intended meeting the description of in-scope for use in the home and are not sold to merchandise, constitute merchandise A–570–866: Folding Gift Boxes From the altered in form or appearance in such People’s Republic of China dry cleaners, laundries, uniform rental services, or similar industrial minor respects that it should be Requestor: Procter & Gamble Inc.; operations. Moreover, the Department included within the scope of the order; Gucci brand gift boxes are not within previously has found that hangers with September 16, 2013. the scope of the antidumping duty order unique designs similar to Whitmor Interested parties are invited to as they meet the thickness exclusion Hangers renders them distinguishable in comment on the completeness of this language; August 19, 2013. use from ‘‘in-scope merchandise’’ which list of completed scope and A–570–891: Hand Trucks and Certain is used for industrial laundries, uniform anticircumvention inquiries. Any Parts Thereof From the People’s rental companies, dry cleaners, or to be comments should be submitted to the Republic of China taken away with garments from stores as Deputy Assistant Secretary for AD/CVD 3 Operations, Enforcement and Requestor: Welcom Products; the MC2 described in the Petition; August 20, 2013. Compliance, International Trade Elite Magna Cart is not within the scope Administration, 14th Street and of the antidumping duty order because A–570–890: Wooden Bedroom Furniture Constitution Avenue NW., APO/Dockets it is indistinguishable from the MC2 From the People’s Republic of China Unit, Room 1870, Washington, DC Magna Cart that had been previously Requestor: Dorel Home Products 20230. found outside the order; September 4, Group; Imagination Junior Loft Beds This notice is published in 2013. (fire truck and princess castle) are accordance with 19 CFR 351.225(o). A–570–822: Helical Spring Lock within the scope of the antidumping duty order because they are beds made Dated: January 28, 2014. Washers From the People’s Republic of Christian Marsh, China substantially of wood; July 22, 2013. A–570–890: Wooden Bedroom Furniture Deputy Assistant Secretary, for Antidumping Requestor: United Steel and and Countervailing Duty Operations. From the People’s Republic of China Fasteners, Inc.; AREMA washers [FR Doc. 2014–02229 Filed 1–31–14; 8:45 am] Requestor: Whalen Furniture imported by United Steel and Fasteners, BILLING CODE 3510–DS–P Inc. are within the scope of Manufacturing, Inc.; modular room antidumping duty order because the dividers are not within the scope of the design of the AREMA washers facilitates antidumping duty order because they DEPARTMENT OF COMMERCE the same functionality characteristics of are similar to bookcases or wall unit helical spring lock washers as described systems which are excluded from the National Oceanic and Atmospheric by the scope of the order; July 10, 2013. scope; August 29, 2013. Administration A–570–504: Petroleum Wax Candles The Russian Federation RIN 0648–XD071 From the People’s Republic of China A–821–811: Solid Fertilizer Grade Pacific Fishery Management Council; Requestor: Jay Import Company, Inc.; Ammonium Nitrate From the Russian Public Meetings and Hearings The goat candle is not within the scope Federation of the antidumping duty order (‘‘Order’’) AGENCY: National Marine Fisheries because it is shaped like an animal and Requestor: KCKK Mineral Fertilizer Service (NMFS), National Oceanic and thus, meets the exclusion for figurine Plant, OJSC, part of the Uralchem, OJSC Atmospheric Administration (NOAA), candles, while the four cherub candles group of companies; a fertilizer product Commerce. identified as NS 30:7 is covered by the are within the scope of the Order, ACTION: antidumping duty order on solid Notice of opportunities to because the only candle exclusions are submit public comments. for birthday or birthday numeral, fertilizer grade ammonium nitrate from figurine and utility candles, and these the Russian Federation because it meets SUMMARY: The Pacific Fishery are not birthday numeral, figurine, or Management Council (Pacific Council) 3 See Petition for the Imposition of Antidumping utility candles as determined by the Duties on Steel Wire Garment Hangers From the has announced its annual preseason Department of Commerce; August 27, People’s Republic of China, dated July 31, 2007 management process for the 2014 ocean 2013. (‘‘Petition’’), at 14. salmon fisheries. This notice informs

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the public of opportunities to provide SUPPLEMENTARY INFORMATION: The DEPARTMENT OF COMMERCE comments on the 2014 ocean salmon Pacific Council has published its annual management measures. notice of availability of reports; public National Oceanic and Atmospheric Administration DATES: Written comments on the salmon meetings, and hearings for the 2014 management alternatives adopted by the ocean salmon fisheries (78 FR 73850, RIN 0648–XD105 Pacific Council at its March 2014 December 9, 2013). The Pacific Council meeting, and described in Preseason will adopt alternatives for 2014 ocean Small Takes of Marine Mammals Report II, submitted electronically or in salmon fisheries at its meeting, March Incidental to Specified Activities; Cape hard copy by 11:59 p.m. Pacific Time, 7–13, 2014 at the DoubleTree by Hilton Wind’s High Resolution Survey in March 30, 2014 will be considered in Hotel in Sacramento, California. Details Nantucket Sound, MA the Pacific Council’s final of this meeting are available on the AGENCY: National Marine Fisheries recommendation for the 2014 Pacific Council’s Web site management measures. Service (NMFS), National Oceanic and (www.pcouncil.org) and will be Atmospheric Administration (NOAA), ADDRESSES: Documents will be available published in the Federal Register in Commerce. from Ms. Dorothy Lowman, Chair, February 2014. On March 21, 2014, ACTION: Notice; proposed incidental Pacific Fishery Management Council, ‘‘Preseason Report II—Proposed harassment authorization; request for 7700 NE Ambassador Place, Suite 101, Alternatives and Environmental comments. Portland, OR 97220–1384, telephone: Assessment Part 2 for 2014 Ocean 503–820–2280 (voice) or 503–820–2299 Salmon Fishery Regulations’’ and public SUMMARY: NMFS has received an (fax), and posted on the Pacific Council hearing schedule will be mailed to the application from Cape Wind Associates Web site at http://www.pcouncil.org. public that have requested to receive (CWA) for an Incidental Harassment You may submit comments, identified these documents (see ADDRESSES) and Authorization (IHA) to take marine by NOAA–NMFS–2014–0005, by any posted on the Pacific Council Web site mammals, by harassment, incidental to one of the following methods: at http://www.pcouncil.org. The report pre-construction high resolution survey • Electronic Submissions: Submit all will include a description of the salmon activities. CWA began pre-construction electronic public comments via the management alternatives and a activities in 2012, but was unable to Federal e-Rulemaking Portal. Go to summary of their biological and complete the entire survey. Pursuant to http://www.regulations.gov/#!docket economic impacts. the Marine Mammal Protection Act Detail;D=NOAA-NMFS-2014-0005, click (MMPA), NMFS is requesting comments the ‘‘Comment Now!’’ icon, complete Comments on the alternatives the on its proposal to issue an IHA to CWA the required fields, and enter or attach Pacific Council adopts at its March 2014 to incidentally take, by Level B your comments. meeting, and described in Preseason harassment only, marine mammals • Mail: Ms. Dorothy Lowman, Chair, Report II, may be submitted in writing during the specified activity. or electronically as described under Pacific Fishery Management Council, DATES: Comments and information must 7700 NE Ambassador Place, Suite 101, Addresses, or verbally or in writing at be received no later than March 5, 2014. Portland, OR 97220–1384. any of the public hearings held on ADDRESSES: Comments on the • March 24–25, 2014, or at the Pacific Fax: 503–820–2299, Attn: Mr. Mike application and this proposal should be Burner. Council’s meeting, April 4–10, 2014, at • addressed to Jolie Harrison, Incidental Comments can also be submitted the Hilton Hotel in Vancouver, Take Program Supervisor, Permits and via email at [email protected]. Washington. Details of these meetings Conservation Division, Office of Instructions: Comments sent by any are available on the Pacific Council’s Protected Resources, National Marine other method, to any other address or Web site (www.pcouncil.org) and will be Fisheries Service, 1315 East-West individual may not be considered by published in the Federal Register. Highway, Silver Spring, MD 20910. The NMFS or the Pacific Council. All Written and electronically submitted mailbox address for providing email comments received are a part of the comments must be received no later comments is [email protected]. public record and will generally be than 11:59 p.m. Pacific Time, March 30, Comments sent via email, including all posted for public viewing on 2014 in order to be included in the attachments, must not exceed a 25- www.regulations.gov without change. briefing book for the April Council megabyte file size. NMFS is not All personal identifying information meeting where they will be considered responsible for comments sent to (e.g., name, address, etc.), confidential in the adoption of the Pacific Council’s addresses other than those provided business information, or otherwise final recommendation for the 2014 here. sensitive information submitted salmon fishery management measures. Instructions: All comments received voluntarily by the sender will be All comments received accordingly will are a part of the public record and will publicly accessible. NMFS and the be reviewed and considered by the generally be posted to http:// Pacific Council will accept anonymous Pacific Council and NMFS. www.nmfs.noaa.gov/pr/permits/ comments (enter ‘‘N/A’’ in the required incidental.htm without change. All fields if you wish to remain Authority: 16 U.S.C. 1801 et seq. Personal Identifying Information (for anonymous). Attachments to electronic Dated: January 29, 2014. example, name, address, etc.) comments will be accepted in Microsoft Sean F. Corson, voluntarily submitted by the commenter Word, Excel, or Adobe PDF file formats may be publicly accessible. Do not only. Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service. submit Confidential Business FOR FURTHER INFORMATION CONTACT: Mr. [FR Doc. 2014–02169 Filed 1–31–14; 8:45 am] Information or otherwise sensitive or Mike Burner, telephone: 503–820–2280. protected information. For information on submitting BILLING CODE 3510–22–P An electronic copy of the application comments via the Federal e-Rulemaking may be obtained by visiting the internet portal, contact Peggy Mundy, telephone: at: http://www.nmfs.noaa.gov/pr/ 206–526–4323. permits/incidental.htm. The following

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associated documents are also available CWA proposes to conduct a high Dates and Duration at the same internet address: 2011 resolution geophysical survey in Survey activities are necessary prior Environmental Assessment, 2012 Nantucket Sound, Massachusetts. The to construction of the wind turbine monitoring report. Documents cited in proposed activity would occur during array and are scheduled to begin in the this notice may also be viewed, by daylight hours over an estimated 109- spring of 2014, continuing on a daily appointment, during regular business day period beginning in April 2014. The basis for up to five months. Survey hours, at the aforementioned address. following equipment used during the vessels would operate during daytime FOR FURTHER INFORMATION CONTACT: survey is likely to result in the take of hours only and CWA estimates that one Michelle Magliocca, Office of Protected marine mammals: Shallow-penetration survey vessel would cover about 17 Resources, NMFS, (301) 427–8401. subbottom profiler and medium- nautical miles (31 kilometers) of track SUPPLEMENTARY INFORMATION: penetration subbottom profiler. Take, by line per day. Therefore, CWA Level B harassment only, of individuals conservatively estimates that survey Background of five species is anticipated to result activities would take 109 days (28 days Sections 101(a)(5)(A) and (D) of the from the specified activity. less than what was expected under the MMPA (16 U.S.C. 1361 et seq.) direct NMFS issued CWA an IHA in 2011 2012 IHA). However, if more than one the Secretary of Commerce to allow, (76 FR 80891, December 27, 2011) for survey vessel is used, the survey upon request, the incidental, but not survey work that was to be completed duration would be considerably shorter. intentional, taking of small numbers of in 2012. However, subsequent to the NMFS is proposing to issue an marine mammals by U.S. citizens who issuance of that IHA, CWA found it authorization that extends from April 1, engage in a specified activity (other than necessary to divide their survey into 2014, to March 31, 2015. commercial fishing) within a specific two seasons. They completed Specified Geographic Region geographical region if certain findings approximately 20 percent of the survey are made and either regulations are in 2012 and obtained a second IHA to Survey vessels are expected to depart issued or, if the taking is limited to conduct the remaining 80 percent in from Falmouth Harbor, Massachusetts, harassment, a notice of a proposed 2013 (78 FR 19217, March 29, 2013). or another nearby harbor on Cape Cod. authorization is provided to the public Due to scheduling adjustments, the In total, the survey would cover for review. work was not conducted in 2013 and approximately 110 square kilometers Authorization for incidental takings this request is an extension of the (km2). This area includes the future shall be granted if NMFS finds that the original request. CWA is not proposing location of the wind turbine taking will have a negligible impact on to change their survey activities in any generators—an area about 8.4 km from the species or stock(s), will not have an way. However, the geotechnical portion Point Gammon, 17.7 km from Nantucket unmitigable adverse impact on the of the survey was completed in 2012 Island, and 8.9 km from Martha’s availability of the species or stock(s) for and would not be continued during the Vineyard—and cables connecting the subsistence uses (where relevant), and if 2014 season. wind park to the mainland. The survey the permissible methods of taking and Description of the Specified Activity area within the wind park would be requirements pertaining to the transited by survey vessels towing mitigation, monitoring, and reporting of CWA proposes to conduct a high specialized equipment along primary such takings are set forth. NMFS has resolution geophysical survey in order track lines and perpendicular tie lines. defined ‘‘negligible impact’’ in 50 CFR to acquire remote-sensing data around Preliminary survey designs include 216.103 as ‘‘an impact resulting from Horseshoe Shoal which would be used primary track lines with northwest- the specified activity that cannot be to characterize resources at or below the southeast orientations and assume 30- reasonably expected to, and is not seafloor. The purpose of the survey meter (m) line spacing. Preliminary reasonably likely to, adversely affect the would be to identify any submerged survey designs also call for tie lines to species or stock through effects on cultural resources that may be present likely run in a west-east orientation annual rates of recruitment or survival.’’ and to generate additional data covering targeted areas of the Except with respect to certain describing the geological environment construction footprint where wind activities not pertinent here, the MMPA within the survey area. The survey turbine generators would be located. defines ‘‘harassment’’ as: Any act of would satisfy the mitigation and The survey area along the pursuit, torment, or annoyance which (i) monitoring requirements for ‘‘cultural interconnecting submarine cable route has the potential to injure a marine resources and geology’’ in the includes a construction and anchoring mammal or marine mammal stock in the environmental stipulations of the corridor, as part of the wind farm’s area wild [Level A harassment]; or (ii) has Bureau of Ocean Energy Management’s of potential effect. The total track line the potential to disturb a marine lease. The survey is part of the first distance covered during the survey is mammal or marine mammal stock in the phase of a larger Cape Wind energy estimated to be about 3,432 km (as wild by causing disruption of behavioral project, which involves the installation opposed to the 4,292 km included in the patterns, including, but not limited to, of 130 wind turbine generators on 2012 IHA). migration, breathing, nursing, breeding, Horseshoe Shoal over a 2-year period. Multiple survey vessels may operate feeding, or sheltering [Level B The survey would collect data along within the survey area and would travel harassment]. predetermined track lines using a towed at about 3 knots during data acquisition array of instrumentation, which would and approximately 15 knots during Summary of Request include a side scan sonar, transit between the survey area and On December 20, 2013, NMFS magnetometer, shallow-penetration port. If multiple vessels are used at the received an application from CWA for subbottom profiler, multibeam depth same time, they would be far enough the taking of marine mammals sounder, and medium-penetration apart that sounds from the chirp and incidental to high resolution survey subbottom profiler. The proposed high boomer would not overlap. The survey activities. NMFS determined that the resolution geophysical survey activities vessels would acquire data continuously application was adequate and complete would not result in any disturbance to throughout the survey area during the on December 20, 2013. the sea floor. day and terminate survey activities

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before dark, prior to returning to port. survey emit sounds within the hearing maximum pressure followed by a period NMFS believes that the likelihood of a range of marine mammals in Nantucket of diminishing and oscillating pressures survey vessel striking a marine mammal Sound: Shallow-penetration and (Southall et al., 2007). The boomer has is low considering the low marine medium-penetration subbottom a broad frequency range of 0.3 to 14 mammal densities within Nantucket profilers (known as a ‘‘chirp’’ and kHz—a range audible by all marine Sound, the relatively short distance ‘‘boomer,’’ respectively). CWA would mammal species in Nantucket Sound. from port to the survey site, the limited use a chirp to provide high resolution CWA performed sound source number of vessels, and the small vessel data of the upper 15 m of sea bottom. verification monitoring in 2012 on the size. Vessel sounds during survey An EdgeTech 216S or similar model type of chirp and boomer that would be activities would result from propeller would be used. The chirp would be used during the 2014 survey season. cavitations, propeller singing, towed near the center of the survey Underwater sound was recorded with propulsion, flow noise from water vessel directly adjacent to the gunwale two Autonomous Multichannel dragging across the hull, and bubbles of the boat, about 1 to 1.5 m beneath the Acoustic Recorders, deployed 100 m breaking in the wake. The dominant water’s surface. Sources such as the apart, in the vicinity of the project area. sound source from vessels would be chirp are considered non-impulsive, The received 90-percent rms sound from propeller cavitations; however, intermittent (as opposed to continuous) pressure levels (SPLs) from the sounds resulting from survey vessel sounds. The frequency range for this subbottom profilers did not exceed 175 activity are considered to be no louder instrument is generally 2 to 16 kilohertz dB re 1uPa. The loudest source, the than the existing ambient sound levels (kHz)—a range audible by all marine dual-plate boomer, produced a received and sound generated from regular mammal species in Nantucket Sound. 90-percent rms SPL of less than 140 dB shipping and boating activity in The estimated sound pressure level at re 1 uPa at a 500-m range. The distance Nantucket Sound (MMS, 2009). the source would be 201 dB re 1 mPa at to the 160-dB isopleth was 12 m for the 1 m with a typical pulse length of 32 Detailed Description of Activities dual-plate boomer and 10 m for the milliseconds and a pulse repetition rate chirp. NMFS expects that acoustic stimuli of 4 per second. NMFS does not resulting from the operation of the consider the chirp to be a continuous Description of Marine Mammals in the survey equipment have the potential to sound source (best represented by Area of the Specified Activity harass marine mammals. Background vibratory pile driving or drilling). CWA information on the characteristics and would use a boomer to obtain deeper All marine mammals with possible or measurement of sound were provided in resolution of geologic layering that confirmed occurrence in the proposed the 2013 proposed IHA notice (78 FR cannot be imaged by the chirp. An activity area are listed in Table 1, along 7402, February 1, 2013) and have not AP3000 (dual plate) boomer, or similar with their status under the Endangered changed. The dominant sources of model would be used. The boomer Species Act (ESA) and MMPA. In sound during the proposed survey would be towed about 3 to 5 m behind general, large whales do not frequent activities would be from the towed the survey vessel’s stern at the water’s Nantucket Sound, but they are equipment used to gather seafloor data. surface. Unlike the chirp, the boomer discussed below because some species Two of the seismic survey devices used emits an impulse sound, characterized have been reported near the project during the high resolution geophysical by a relatively rapid rise-time to vicinity.

TABLE 1—MARINE MAMMALS WITH POSSIBLE OR CONFIRMED OCCURRENCE IN THE PROPOSED ACTIVITY AREA

Common name Scientific name ESA Status MMPA Status

Humpback whale ...... Megaptera novaeangilae ...... endangered ..... depleted. Fin whale ...... Balaenoptera physalus ...... endangered .... depleted. North Atlantic right whale ...... Eubaelena glacialis ...... endangered ..... depleted. Minke whale ...... Balaenoptera acutorostrata Atlantic white-sided dolphin ...... Lagenorhynchus acutus Harbor porpoise ...... Phocoena phocoena Gray seal ...... Halichoerus grypus Harbor seal ...... Phoca vitulina

Sightings data indicate that whales indicates that humpback whales, fin although these stocks exist in the New rarely visit Nantucket Sound and there whales, and right whales—although England region. Therefore, CWA is are no sightings of large whales on present in the New England region—are neither requesting nor is NMFS Horseshoe Shoal. Since 2002, no rare in Nantucket Sound and transient proposing to authorize take of the humpback whales have been observed individuals may be occasionally found aforementioned species. anywhere in Nantucket Sound and there 20 km from the proposed project area; Marine mammals with known are no documented occurrences of fin this is likely due to the shallow depths occurrences in Nantucket Sound that whales within Nantucket Sound. Right of Nantucket Sound and its location could be harassed by high resolution whales are considered rare in Nantucket outside of the coastal migratory geophysical survey activity in Sound and have not been sighted on corridor. Nantucket Sound are listed in Table 2. Horseshoe Shoal. All of the right whales Likewise, sightings data shows no These are the species for which take is observed in Nantucket Sound during record of long-finned pilot whales, being requested. Information on each 2010 quickly transited the area and striped dolphins, Atlantic spotted species is summarized below. Further there is no evidence of any persistent dolphins, common dolphins, Risso’s information on the biology and local aggregations around the proposed dolphins, Kogia species, harp seals, or distribution of these species and others project area. The best available science hooded seals in Nantucket Sound, in the region can be found in CWA’s

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application, which is available online and the NMFS Marine Mammal Stock online at: http://www.nmfs.noaa.gov/pr/ at: http://www.nmfs.noaa.gov/pr/ Assessment Reports, which are available species. permits/incidental.htm#applications,

TABLE 2—MARINE MAMMALS THAT COULD BE IMPACTED BY SURVEY ACTIVITIES IN NANTUCKET SOUND

Population Common name Scientific name Abundance status Time of year in New England

Minke whale ...... Balaenoptera actuorostrata ...... 20,741 n/a ...... April through October. Atlantic white-sided dolphin ...... Lagenorhynchus acutus ...... 48,819 n/a ...... October through December. Harbor porpoise ...... Phocoena phocoena ...... 79,883 n/a ...... Year-round (peak Sept–Apr). Gray seal ...... Halichoerus grypis ...... 348,900 increasing ..... Year-round. Harbor seal ...... Phoca vitulina ...... 99,340 n/a ...... October through April.

Minke Whales North Atlantic and North Pacific. In the the waters off Maine and Canada, but In the North Atlantic, minke whales western North Atlantic, harbor others have been observed in high are found from Canada to the Gulf of porpoises are found from Greenland to abundance in Chatham Harbor, MA and Mexico and concentrated in New Cape Hatteras, North Carolina. Harbor other areas of lower Cape Cod during England waters, particularly in the porpoises in U.S. waters are divided this time. spring and summer months. Minke into 10 stocks, based on genetics, Incidental observations of seals were whales found in Nantucket Sound are movement patterns, and management. recorded during avian aerial surveys part of the Canadian East Coast stock, Any harbor porpoises encountered conducted independently by CWA and which runs from the Davis Strait down during the proposed survey activities the Massachusetts Audubon Society. to the Gulf of Mexico. The best available would be part of the Gulf of Maine/Bay Between May 2002 and February 2004, abundance estimate for this stock is of Fundy stock which has an estimated CWA conducted about 46 aerial avian 20,741 individuals. Sightings data abundance of 79,883 animals. They surveys in Nantucket Sound, with indicate that minke whales prefer congregate around the Gulf of Maine particular focus on Horseshoe Shoal. shallower waters when in the Cape Cod during summer months, but are During this time, about 26,873 seals vicinity, but depths significantly greater otherwise dispersed along the east coast. were observed throughout Nantucket than Nantucket Sound. Sightings per No trend analyses exist for this species. Sound; about 56 of these were observed unit effort estimates for Nantucket Harbor porpoises are not listed under within the proposed project area over Sound are 0.1 to 5.9 minke whales per the ESA, although they are considered the three-year period. The current 1,000 km of survey track for spring and strategic under the MMPA. abundance estimate for the western summer. However, estimates may be Gray Seals North Atlantic stock is 348,900 animals. biased due to heavier whale watching Gray seal numbers are increasing in activities during those months. Minke Gray seals inhabit temperate and sub- coastal waters between southern whales are one of the most abundant arctic waters. They are found from Massachusetts and eastern Long Island. whale species in the world and their Maine to Long Island Sound, live on Their abundance is likely increasing population is considered stable remote, exposed islands, shoals, and throughout the western Atlantic, but the throughout. The minke whale is not unstable sandbars, and are the second rate of increase is unknown. Gray seals listed under the ESA or considered most common pinniped along the U.S. are not listed under the ESA or strategic under the MMPA. Atlantic coast. Three major populations considered strategic under the MMPA. exist in eastern Canada, northwestern Harbor Seals Atlantic White-Sided Dolphin Europe, and the Baltic Sea. The western Atlantic white-sided dolphins are North Atlantic stock is equivalent to the Harbor seals, also known as common found in temperate and sub-polar waters eastern Canada population and ranges seals, are found throughout coastal of the North Atlantic, typically along the from New York to Labrador. Pupping waters of the Atlantic Ocean and continental shelf and slope. In the occurs on land or ice from late considered the most abundant pinniped western North Atlantic, they are found December through mid-February with on the U.S. east coast. The best available from North Carolina to Greenland. peaks in mid-January. Muskeget Island estimate for the harbor seal population During summer months, Atlantic white- (located between Martha’s Vineyard and along the New England coast is 99,340 sided dolphins move north and closer to Nantucket Island) and Monomoy Island (NMFS, 2011). They are most common shore. Atlantic white-sided dolphins are (at the eastern limit of Nantucket around coastal islands, ledges, and rare in Nantucket Sound, but are found Sound) are the only gray seal breeding sandbars above 30° N latitude and range in deeper waters around Massachusetts colonies in the U.S. and the from the Arctic down to Nantucket and Rhode Island. In 2012, the southernmost gray seal breeding Sound. Harbor seals are seasonal estimated population size of the colonies in the world. These breeding visitors to Massachusetts; breeding and Western North Atlantic stock was about colonies are about 24 km and 14 km pupping occur through the spring and 48,819 animals. There is insufficient from the proposed project site, summer in Maine and Canada. Harbor data to determine population trends, but respectively. Gray seals presently use seals typically over-winter in Atlantic white-sided dolphins are not the islands as areas to give birth and Massachusetts, but some remain in listed under the ESA, although they are raise their pups. There is no defined southern New England year-round. No considered strategic under the MMPA. migratory behavior for gray seals, so a pupping areas have been identified in large portion of the population may be southern New England. Extensive sand Harbor Porpoises present in Nantucket Sound year-round. spits off Muskeget Island and Harbor porpoises have a wide and Some adults move north during spring neighboring Tuckernuck and Skiff discontinuous range that includes the and summer, out of Nantucket Sound to Islands have been identified as preferred

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haul-out spots for large numbers of widespread throughout the world’s practicable adverse impact on marine harbor seals. oceans. Marine mammals produce mammals: Harbor seal abundance estimates for sounds in various contexts and use Establishment of an Exclusion Zone Nantucket Sound are scarce. Barlas sound for various biological functions (1999) observed harbor seals on Cape including, but not limited to: (1) Social During all survey activities involving Cod from October through April and interactions; (2) foraging; (3) orientation; the shallow-penetration and medium- saw abundance peak in March, with and (4) predator detection. Interference penetration subbottom profilers, CWA very few individuals using haul-out with producing or receiving these would establish a 500-m radius sites in Nantucket Sound. Waring sounds may result in adverse impacts. exclusion zone around each survey (unpublished data, 2002) observed an Audible distance, or received levels of vessel. This area would be monitored increased abundance of harbor seals on sound depend on the nature of the for marine mammals 60 minutes (as Muskeget Island, Monomoy Island, and sound source, ambient noise conditions, stipulated by the BOEMRE lease) prior Tuckernuck Island in 1999 and 2000; and the sensitivity of the receptor to the to starting or restarting surveys, and however, harbor seals are not likely to sound (Richardson et al., 1995). Type during surveys, and 60 minutes after be in the same area when gray seals are and significance of marine mammal survey equipment has been turned off. breeding. reactions to sound are likely dependent Typically, the exclusion zone is based on the area in which marine mammals Potential Effects of the Specified on a variety of factors including, but not could be exposed to injurious (Level A) Activity on Marine Mammals limited to, (1) the behavioral state of the animal (for example, feeding, traveling, levels of sound. CWA’s lease specifies a This section includes a summary and etc.); (2) frequency of the sound; (3) 500-m exclusion zone, which exceeds discussion of the ways that the types of distance between the animal and the both the estimated Level A and Level B stressors associated with the specified source; and (4) the level of the sound isopleths for marine mammal activity have been observed to impact relative to ambient conditions (Southall harassment. Thus, CWA’s proposed marine mammals. This discussion may et al., 2007). exclusion zone would minimize impacts also include reactions that we equate Background information on sound, to marine mammals from increased with a take and those that we do not sound exposures. Finally, the exclusion equate with a take (for example, with marine mammal hearing, and potential effects of the specified activity on zone must not be obscured by fog or acoustics, we may include a discussion poor lighting conditions. of studies that showed animals not marine mammals (i.e., hearing reacting at all to sound or exhibiting impairment, threshold shift, and Shut Down and Delay Procedures behavioral disturbance) was provided in barely measureable avoidance). This If a protected species observer sees a the 2013 proposed IHA notice 78 FR section also provides background marine mammal within or approaching 7402 (February 1, 2013) and that information concerning potential effects the exclusion zone prior to the start of information has not changed. of the specified activity, but does not surveying, the observer would notify the consider either the specific manner in Anticipated Effects on Marine Mammal appropriate individual who would then which the activity will be carried out or Habitat be required to delay surveying (i.e., not the mitigation that will be implemented, initiate any sound sources that could The high resolution geophysical and how either of these will influence result in the harassment of marine survey equipment would not come in the anticipated impacts from this mammals) until the marine mammal contact with the seafloor and would not specific activity. The ‘‘Estimated Take moves outside of the exclusion zone or be a source of air or water pollution. by Incidental Harassment’’ section later if the animal has not been resighted for Marine mammals may avoid the survey in this document will include a 60 minutes. If a protected species area temporarily due to ensonification, quantitative analysis of the number of observer sees a marine mammal within but survey activities are not expected to individuals that we expect to be taken or approaching the exclusion zone result in long-term abandonment of by this activity. The ‘‘Negligible Impact during survey activities, the observer marine mammal habitat. A negligible Analysis’’ section will include the would notify the appropriate individual area of seafloor would be temporarily analysis of how this specific activity who would then be required to shut disturbed during the collection of will impact marine mammals and will down the relevant sound sources until geotechnical data. The proposed activity consider the content of this section, the the marine mammal moves outside of is not expected to have any effects on ‘‘Estimated Take by Incidental the exclusion zone or if the animal has important marine mammal habitat. Harassment’’ section, the ‘‘Proposed not been resighted for 60 minutes. Mitigation’’ section, and the Proposed Mitigation ‘‘Anticipated Effects on Marine Mammal Soft-Start Procedures Habitat’’ section to draw conclusions In order to issue an incidental take A ‘‘soft-start’’ technique would be regarding the likely impacts of this authorization under section 101(a)(5)(D) used at the beginning of survey activity on the reproductive success or of the MMPA, NMFS must prescribe, activities each day (or following a shut survivorship of individuals and from where applicable, the permissible down of the relevant sound sources) to that on the affected marine mammal methods of taking pursuant to such allow any marine mammal that may be populations or stocks. activity, and other means of effecting in the immediate area to leave before the Use of subbottom profilers on the least practicable impact on such sound sources reach full energy. Sound Horseshoe Shoal may temporarily species or stock and its habitat, paying sources shall not commence at impact marine mammal behavior within particular attention to rookeries, mating nighttime or when the exclusion zone the survey area due to elevated in-water grounds, and areas of similar cannot be effectively monitored. sound levels. Marine mammals are significance, and on the availability of continually exposed to many sources of such species or stock for taking for Mitigation Conclusions sound. Naturally occurring sounds such subsistence uses (where relevant). NMFS has carefully evaluated the as lightning, rain, sub-sea earthquakes, CWA proposed, with NMFS’ applicant’s proposed mitigation and biological sounds (for example, guidance, the following mitigation measures and considered a range of snapping shrimp, whale songs) are measures to help ensure the least other measures to ensure that NMFS

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prescribes the means of effecting the effective implementation of the (need to be able to accurately predict least practicable impact on the affected mitigation received level, distance from source, marine mammal species and stocks and Based on our evaluation of the and other pertinent information) their habitat. Our evaluation of potential applicant’s proposed measures, as well Æ Physiological measurements in the measures included consideration of the as other measures considered by NMFS, presence of stimuli compared to following factors in relation to one we have preliminarily determined that observations in the absence of stimuli another: the proposed mitigation measures (need to be able to accurately predict • The manner in which, and the provide the means of effecting the least received level, distance from source, degree to which, the successful practicable adverse impacts on marine and other pertinent information) Æ implementation of the measure is mammals species or stocks and their Distribution and/or abundance expected to minimize adverse impacts habitat, paying particular attention to comparisons in times or areas with to marine mammals rookeries, mating grounds, and areas of concentrated stimuli versus times or • The proven or likely efficacy of the similar significance. areas without stimuli • An increased knowledge of the specific measure to minimize adverse Proposed Monitoring and Reporting impacts as planned affected species • An increase in our understanding of • The practicability of the measure In order to issue an incidental take the effectiveness of certain mitigation for applicant implementation statement for an activity, section and monitoring measures Any mitigation measures(s) 101(a)(5)(D) of the MMPA states that prescribed by NMFS should be able to NMFS must set forth, where applicable, Visual Monitoring ‘‘requirements pertaining to the accomplish, have a reasonable CWA would designate at least one likelihood of accomplishing (based on monitoring and reporting of such taking.’’ The MMPA implementing biologically-trained, on-site individual, current science), or contribute to the approved in advance by NMFS, to accomplishment of one or more of the regulations at 50 CFR 216.104(a)(13) indicate that requests for incidental take monitor the area for marine mammals general goals listed below: 60 minutes before, during, and 60 1. Avoidance or minimization of authorizations must include the suggested means of accomplishing the minutes after all survey activities and injury or death of marine mammals call for shut down of the sound source wherever possible (goals 2, 3, and 4 may necessary monitoring and reporting that will result in increased knowledge of if any marine mammal is observed contribute to this goal) within or approaching the designated 2. A reduction in the numbers of the species and of the level of taking or impacts on populations of marine 500-m exclusion zone. Should a marine marine mammals (total number or mammals that are expected to be mammal not included in an incidental number at biologically important time present in the proposed action area. take authorization be observed at any or location) exposed to received levels CWA submitted a marine mammal time within the 500-m exclusion zone, of underwater impulse sounds, or other monitoring plan as part of the IHA shut down and delay procedures would activities expected to result in the take application, which can be found in be followed. of marine mammals (this goal may section 12 of CWA’s application. The CWA would also provide additional contribute to 1, above, or to reducing plan may be modified or supplemented monitoring efforts that would result in harassment takes only) based on comments or new information increased knowledge of marine mammal 3. A reduction in the number of times received from the public during the species in Nantucket Sound. At least (total number or number at biologically public comment period. one NMFS-approved protected species important time or location) individuals Monitoring measures prescribed by observer would conduct behavioral would be exposed to received levels of NMFS should accomplish one or more monitoring from the survey vessel for impulse sound, or other activities of the following general goals: two days, every 14 days of survey expected to result in the take of marine • An increase in the probability of activity, to estimate take and evaluate mammals (this goal may contribute to 1, detecting marine mammals, both within the behavioral impacts that survey above, or to reducing harassment takes the mitigation zone (thus allowing for activities have on marine mammals only) more effective implementation of the outside of the 500-m exclusion zone. In 4. A reduction in the intensity of mitigation) and in general to generate addition, CWA would also deploy an exposures (either total number or more data to contribute to the analyses additional vessel with a NMFS- number at biologically important time mentioned below approved protected species observer to or location) to received levels of • An increase in our understanding of collect data on species presence and impulse sound, or other activities how many marine mammals are likely behavior before surveys begin and once expected to result in the take of marine to be exposed to levels of impulse sound a month during survey activities. mammals (this goal may contribute to 1, that we associate with specific adverse Protected species observers would be above, or to reducing the severity of effects, such as behavioral harassment, provided with the equipment necessary harassment takes only) TTS, or PTS to effectively monitor for marine 5. Avoidance or minimization of • An increase in our understanding of mammals (for example, high-quality adverse effects to marine mammal how marine mammals respond to binoculars, compass, and range-finder) habitat, paying special attention to the stimuli expected to result in take and in order to determine if animals have food base, activities that block or limit how anticipated adverse effects on entered the harassment isopleths and to passage to or from biologically individuals (in different ways and to record marine mammal sighting important areas, permanent destruction varying degrees) may impact the information. Protected species observers of habitat, or temporary destruction/ population, species, or stock must be able to effectively monitor the disturbance of habitat during a (specifically through effects on annual 500-m exclusion zone whenever the biologically important time rates of recruitment or survival) through subbottom profilers are in use. Survey 6. For monitoring directly related to any of the following methods: efforts would only take place during mitigation—an increase in the Æ Behavioral observations in the daylight hours and visibility must not probability of detecting marine presence of stimuli compared to be obscured by fog, lighting conditions, mammals, thus allowing for more observations in the absence of stimuli etc.

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Reporting Measures • Description of all marine mammal Monitoring Results From Previously observations in the 24 hours preceding Authorized Activities CWA would submit a report to NMFS the incident; within 90 days of expiration of the IHA CWA complied with the requirements or completion of surveying, whichever • Species identification or under their 2012 IHA and did not comes first. The report would provide description of the animal(s) involved; conduct any activities under their 2013 full documentation of methods, results, • Fate of the animal(s); and IHA. CWA completed 28 days and 459 and interpretation pertaining to all nautical transect miles of survey activity • Photographs or video footage of the monitoring. More specifically, the report during 2012 and no living marine animal(s) (if equipment is available). would include the following mammals were sighted. On July 10, information when a marine mammal is Activities may not resume until 2012, a deceased harbor seal was seen sighted: NMFS is able to review the by two protected species observers and • Dates, times, locations, heading, circumstances of the unauthorized take. survey equipment was immediately shut speed, weather, sea conditions NMFS would work with CWA to down. The observers determined that (including Beaufort sea state and wind determine what is necessary to the seal had been deceased for 24–48 force), and associated activities during minimize the likelihood of further hours, based on signs of scavenger all survey operations and marine unauthorized take and ensure MMPA damage and bloating, which suggest mammal sightings; compliance. CWA may not resume their moderate decomposition (Pugliares et • Species, number, location, distance activities until notified by NMFS via al., 2007). Both observers concurred that from the vessel, and behavior of any letter, email, or telephone. the animal was not injured due to marine mammals, as well as associated In the event that CWA discovers an survey activities; however, a 60-minute survey activity (number of shut-downs injured or dead marine mammal, and post watch was performed to ensure that or delays), observed throughout all the lead PSO determines that the cause no other protected species were in the monitoring activities; of the injury or death is unknown and vicinity. A full report was submitted to • An estimate of the number (by the death is relatively recent (i.e., in less NMFS on July 11, 2012, within 24 hours species) of marine mammals that are than a moderate state of decomposition of the initial sighting. No marine known to have been exposed to the as described in the next paragraph), mammal takes were reported during the survey activity (based on visual CWA would immediately report the 2012 season. CWA’s monitoring report observation) at received levels greater incident to the Chief of the Permits and is available online at: http:// www.nmfs.noaa.gov/pr/permits/ than or equal to 160 dB re 1 uPa (rms) Conservation Division, Office of incidental.htm#applications. and/or 180 dB re 1 uPa (rms) for Protected Resources, NMFS, at 301– cetaceans and 190 dB re 1 uPa (rms) for 427–8401 and/or by email to Estimated Take by Incidental pinnipeds with a discussion of any [email protected] and Harassment specific behaviors those individuals [email protected] and the exhibited; and Except with respect to certain Northeast Regional Stranding activities not pertinent here, the MMPA • A description of the Coordinator at 978–281–9300 defines ‘‘harassment’’ as: Any act of implementation and effectiveness of the ([email protected]). The report pursuit, torment, or annoyance which (i) mitigation measures of the IHA. must include the same information has the potential to injure a marine In the unanticipated event that the identified in the paragraph above. mammal or marine mammal stock in the specified activity clearly causes the take Activities may continue while NMFS wild [Level A harassment]; or (ii) has of a marine mammal in a manner reviews the circumstances of the the potential to disturb a marine prohibited by the IHA, such as an injury incident. NMFS would work with CWA mammal or marine mammal stock in the (Level A harassment), serious injury, or to determine whether modifications in wild by causing disruption of behavioral mortality (e.g., ship-strike, gear the activities are appropriate. patterns, including, but not limited to, interaction, and/or entanglement), CWA In the event that CWA discovers an migration, breathing, nursing, breeding, would immediately cease the specified injured or dead marine mammal, and feeding, or sheltering [Level B activities and report the incident to the the lead PSO determines that the injury harassment]. Chief of the Permits and Conservation or death is not associated with or related Based on CWA’s application and Division, Office of Protected Resources, to the activities authorized in the IHA NMFS’ subsequent analysis, the impact NMFS, at 301–427–8401 and/or by (e.g., previously wounded animal, of the described survey activities may email to [email protected] and carcass with moderate to advanced result in, at most, short-term [email protected] and the decomposition, or scavenger damage), modification of behavior by small Northeast Regional Stranding CWA would report the incident to the numbers of marine mammals within the Coordinator at 978–281–9300 Chief of the Permits and Conservation action area. Marine mammals may avoid ([email protected]). The report Division, Office of Protected Resources, the area or change their behavior at time must include the following information: • NMFS, at 301–427–8401 and/or by of exposure to elevated sound levels. Time, date, and location (latitude/ email to [email protected] and Current NMFS practice regarding longitude) of the incident; [email protected] and the exposure of marine mammals to • Name and type of vessel involved; Northeast Regional Stranding anthropogenic sound is that in order to • Vessel’s speed during and leading Coordinator at 978–281–9300 avoid the potential for injury of marine up to the incident; ([email protected]), within 24 mammals (for example, PTS), cetaceans • Description of the incident; hours of the discovery. CWA would and pinnipeds should not be exposed to • Status of all sound source use in the provide photographs or video footage (if impulsive sounds of 180 and 190 dB re: 24 hours preceding the incident; available) or other documentation of the 1 mPa or above, respectively (Level A • Water depth; stranded animal sighting to NMFS. harassment). This level is considered • Environmental conditions (e.g., Activities may continue while NMFS precautionary as it is likely that more wind speed and direction, Beaufort sea reviews the circumstances of the intense sounds would be required state, cloud cover, and visibility); incident. before injury would actually occur

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(Southall et al., 2007). Potential for at or above 160 dB re: 1 mPa for impulse are also considered precautionary. behavioral harassment (Level B) is sounds and 120 dB re: 1 mPa for non- NMFS’ current acoustic exposure considered to have occurred when pulse noise, but below the criteria are summarized below in marine mammals are exposed to sounds aforementioned thresholds. These levels Table 3.

TABLE 3—NMFS’ CURRENT ACOUSTIC CRITERIA, AS THEY PERTAIN TO THE SPECIFIED ACTIVITY [Non-explosive sound]

Criterion Criterion definition Threshold

Level A Harassment (Injury) Permanent Threshold Shift (PTS) (Any level above that 180 dB re 1 microPa-m (cetaceans)/190 dB re 1 which is known to cause TTS). microPa-m (pinnipeds) root mean square (rms). Level B Harassment ...... Behavioral Disruption (for impulse noises) ...... 160 dB re 1 microPa-m (rms). Level B Harassment ...... Behavioral Disruption (for continuous noise) ...... 120 dB re 1 microPa-m (rms).

CWA estimated the number of isopleth) were calculated for minke CWA is requesting incidental take potential takes resulting from survey whales, Atlantic white-sided dolphins, based on the highest estimated possible activities by considering species harbor porpoises, gray seals, and harbor species exposures to potentially density, the zone of influence, and seals. These estimates were calculated disturbing levels of sound from the duration of survey activities. More by multiplying the low and high end of boomer. No marine mammals are specifically, take estimates were the ranges of species density by the expected to be exposed to injurious calculated by multiplying the estimated boomer’s zone of influence and the levels of sound in excess of 180 dB species density values (n) measured in number of days of survey operation. during survey activities. CWA is individuals per square kilometers, by CWA calculated seal density estimates 2 requesting, and NMFS is proposing, the area of the zone of influence in km , based on aerial survey counts for seals Level B harassment of nine minke times the total number of survey days (d observed swimming and/or foraging in whales, 185 Atlantic white-sided = 109). The zone of influence was open water within the activity area. calculated as a function of the distance dolphins, 110 harbor porpoises, 314 CWA included an adjustment factor in gray seals, and 79 harbor seals (Table 4). a survey vessel with deployed boomer these density calculations for seals not would travel in one survey day and the These numbers overestimate the number seen, but considered present during area around the boomer where sound of animals likely to be taken because aerial surveys. Density estimates for levels reach or exceed 160 dB. For they are based on the highest density seals based on haul out counts were not consistency with the previous IHAs, the estimates and do not account for take estimate is based on a zone of used due to the distance of haul outs proposed mitigation measures (such as influence equal to 444 m (the initial from the activity area (about 20 km to the 500-m exclusion zone, marine estimate for the 160 dB isopleth for the Monomoy Island and 12 km to mammal monitoring, and ramp up boomer), although based on acoustic Muskeget Island). Gray seals and harbor procedures). These numbers indicate measurements taken at the beginning of seals congregating in these locations are the maximum number of animals the 2012 survey, the 160 dB isopleth is not expected to hear sounds from the expected to occur within 444 m of the thought to be much smaller. This survey equipment at 160 dB or higher. boomer. Estimated and proposed level distance was applied consistently to all The seals most likely to be exposed to of take of each species is less than one potentially disturbing sounds are the marine mammal species. percent of each affected stock and individuals swimming and/or foraging Estimated numbers of species therefore is considered small in relation within the zone of influence for the potentially exposed to disturbing levels to the stock estimates previously set of sound from the boomer (the survey activated medium-penetration forth. equipment with the largest 160 dB subbottom profiler.

TABLE 4—ESTIMATED TAKE OF MARINE MAMMALS BY THE SPECIFIED ACTIVITY

Percentage of Estimated take Abundance of stock Population Common name Estimated density by level B stock potentially trend harassment affected

Minke whale ...... 0.13–7.4 ...... 9 20,741 0.04 n/a. (species/1,000 km2) Atlantic white-sided dolphin ...... 0.13–164.3 ...... 185 48,819 0.38 n/a. (species/1,000 km2) Harbor porpoise ...... 0.13–98.1 ...... 110 79,883 0.01 n/a. (species/1,000 km2) Gray seal ...... 0.13–0.28 ...... 314 348,900 0.09 increasing. (species/km2) Harbor seal ...... 0.03–0.07 ...... 79 99,340 0.08 n/a. (species/km2)

Any impacts to marine mammal avoid the area around the survey likely to be in the form of temporary behavior from the specified activity are vessels, thereby reducing exposure. Any avoidance or alteration of opportunistic expected to be temporary. Animals may disturbance to marine mammals is

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foraging behavior near the survey occur; no marine mammal takes were U.S.C. 4321 et seq.), as implemented by location. observed during 28 days of survey the regulations published by the activity in 2012. No affected marine Council on Environmental Quality (40 Analysis and Preliminary mammals are listed under the ESA and CFR parts 1500–1508), and NOAA Determinations only the Atlantic white-sided dolphin Administrative Order 216–6, NMFS Negligible Impact and harbor porpoise are considered prepared an Environmental Assessment Negligible impact is ‘‘an impact strategic under the MMPA. Marine (EA). The EA includes an analysis of the resulting from the specified activity that mammals are expected to avoid the direct, indirect, and cumulative effects cannot be reasonably expected to, and is survey area, thereby reducing exposure to marine mammals and other not reasonably likely to, adversely affect and impacts. No disruption to applicable environmental resources the species or stock through effects on reproductive behavior is anticipated and resulting from the issuance of a 1-year annual rates of recruitment or survival’’ there is no anticipated effect on annual IHA and the potential issuance of (50 CFR 216.103). A negligible impact rates of recruitment or survival of additional authorization for incidental finding is based on the lack of likely affected marine mammals. harassment for the ongoing project in adverse effects on annual rates of Based on the analysis contained 2012. This analysis is still considered recruitment or survival (i.e., population- herein of the likely effects of the relevant for the proposed IHA because level effects). An estimate of the number specified activity on marine mammals the applicant’s proposed activity has not of Level B harassment takes, alone, is and their habitat, and taking into changed. This EA is available on the not enough information on which to consideration the implementation of the NMFS Web site listed in the beginning base an impact determination. In proposed mitigation and monitoring of this document. measures, NMFS preliminarily finds addition to considering estimates of the Proposed Authorization number of marine mammals that might that the total marine mammal take from As a result of these preliminary be ‘‘taken’’ through behavioral CWA’s survey activities have a determinations, NMFS proposes to issue harassment, NMFS must consider other negligible impact on the affected species an IHA to CWA for conducting a high factors, such as the likely nature of any or stocks. resolution geophysical survey in responses (their intensity, duration, Small Numbers Nantucket Sound beginning in the etc.), the context of any responses The amount of take CWA requested, spring of 2014, provided the previously (critical reproductive time or location, and NMFS proposes to authorize, is mentioned mitigation, monitoring, and migration, etc.), as well as the number considered small (less than one percent) reporting requirements are incorporated. and nature of estimated Level A relative to the estimated populations of The proposed IHA language is provided harassment takes, the number of 20,741 minke whales, 48,819 Atlantic next. estimated mortalities, and effects on white-sided dolphins, 79,883 harbor This section contains a draft of the habitat. porpoises, 348,900 gray seals, and IHA itself. The wording contained in In making a negligible impact 99,340 harbor seals. Based on the this section is proposed for inclusion in determination, NMFS considers a analysis contained herein of the likely the IHA (if issued). number of factors which include, but effects of the specified activity on Cape Wind Associates, LLC (CWA), are not limited to, number of anticipated marine mammals and their habitat, and 20 Park Plaza, Suite 320, Boston, injuries or mortalities (none of which taking into consideration the Massachusetts 02116, is hereby would be authorized here), number, implementation of the mitigation and authorized under section 101(a)(5)(D) of nature, intensity, and duration of Level monitoring measures, NMFS the Marine Mammal Protection Act B harassment, and the context in which preliminarily finds that small numbers (MMPA; 16 U.S.C. 1371(a)(5)(D)) to takes occur (for instance, will the takes of marine mammals would be taken harass small numbers of marine occur in an area or time of significance relative to the population of the affected mammals incidental to a high resolution for marine mammals, or are takes species or stocks. geophysical survey conducted in occurring to a small, localized Nantucket Sound, contingent upon the population?). As described above, Impact on Availability of Affected following conditions: marine mammals would not be exposed Species for Taking for Subsistence Uses 1. This Authorization is valid from to activities or sound levels which There are no relevant subsistence uses April 1, 2014, through March 31, 2015. would result in injury (for instance, of marine mammals implicated by this 2. This Authorization is valid only for PTS), serious injury, or mortality. action. Therefore, NMFS has CWA’s activities associated with the Anticipated impacts of survey activities determined that the total taking of high resolution geophysical survey on marine mammals are temporary affected species or stocks would not operations that shall occur in the behavioral changes due to avoidance of have an unmitigable adverse impact on following specified area: Around the area. All marine mammals in the the availability of such species or stocks Horseshoe Shoal in Nantucket Sound, as vicinity of survey operations would be for taking for subsistence purposes. specified in CWA’s 2013 IHA transient as no breeding, calving, application. pupping, or nursing areas, or haul-outs, Endangered Species Act (ESA) 3. Species Impacted and Level of overlap with the survey area. The The proposed activity will have no Takes closest pinniped haul-outs are about 20 effect on any ESA-listed species as none (a). The incidental taking of marine km and 12 km away on Monomoy are expected to be in the action area. mammals, by Level B harassment only, Island and Muskeget Island, Therefore, NMFS has determined that a is limited to the following species in the respectively. Marine mammals section 7 consultation under the ESA is waters of Nantucket Sound: approaching the survey area would not required. (i). Minke whale (Balaenoptera likely be traveling or opportunistically actuorostrata)—9 foraging. Furthermore, the amount of National Environmental Policy Act (ii). Atlantic white-sided dolphin take CWA requested and NMFS (NEPA) (Lagenorhynchus acutus)—185 proposes to authorize likely In compliance with the National (iii). Harbor porpoise (Phocoena overestimates the actual take that would Environmental Policy Act of 1969 (42 phocoena)—110

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(iv). Gray seal (Halichoerus grypis)— resighted for 60 minutes. If a protected compass, and range-finder) in order to 314 species observer sees a marine mammal determine if animals have entered into (v). Harbor seal (Phoca vitulina)—79 within or approaching the exclusion the harassment isopleths and to record (vi). If any marine mammal species zone during survey activities, the marine mammal sighting information. are encountered during survey activities observer will notify the appropriate Protected species observers must be able that are not listed here for authorized individual who will then be required to to effectively monitor the 500-m taking and are likely to be exposed to shut down sound sources until the exclusion zone whenever the subbottom sound pressure levels (SPLs) greater marine mammal moves outside of the profilers are in use. Survey efforts shall than or equal to 160 dB re 1 mPa (rms), exclusion zone or if the animal has not only take place during daylight hours then the Holder of this Authorization been resighted for 60 minutes. and visibility must not be obscured by must alter speed or course, power-down (c). Soft-start procedures—A ‘‘soft- fog, lighting conditions, etc. or shut-down survey activities to avoid start’’ technique for sound sources shall 8. Reporting Requirements: The take. be used at the beginning of survey Holder of this Authorization is required (b). The taking by injury (Level A activities each day (or following a shut to: harassment), serious injury, or mortality down of the sound sources) to allow any (a). Submit a report on all activities of any of the species listed in Condition marine mammal that may be in the and monitoring results to the Office of 3(a) above or the taking of any other immediate area to leave before the Protected Resources, NMFS, within 90 species of marine mammal is prohibited sound sources reach full energy. Sound days of expiration of the IHA or and may result in the modification, sources shall not commence at completion of surveying, whichever suspension, or revocation of this nighttime or when the exclusion zone comes first. This report must contain Authorization. cannot be effectively monitored. and summarize the following 4. The methods authorized for taking, 7. Monitoring Requirements: The information: by Level B harassment only, are limited Holder of this Authorization is required (i). Dates, times, locations, heading, to the following acoustic sources, to implement the following monitoring speed, weather, sea conditions without an amendment to this requirements when conducting the (including Beaufort sea state and wind Authorization: specified activities to result in increased force), and associated activities during (a). Shallow-penetration subbottom knowledge of the species and of the all survey operations and marine profiler; and level of taking or impacts on mammal sightings; (b). Medium-penetration subbottom populations of marine mammals that are (ii). Species, number, location, profiler. expected to be present in the action distance from the vessel, and behavior 5. The taking of any marine mammal area. of any marine mammals, as well as in a manner prohibited under this Visual monitoring—At least one associated survey activity (number of Authorization must be reported biologically trained, on-site individual, shut-downs or delays), observed immediately to the Chief, Permits and approved in advance by NMFS, shall throughout all monitoring activities. Conservation Division, Office of implement the mitigation measures that (iii). An estimate of the number (by Protected Resources, National Marine require real-time monitoring. Protected species) of marine mammals that are Fisheries Service (NMFS) or his species observers (PSOs) shall monitor known to have been exposed to the designee, at 301–427–8401. for marine mammals 60 minutes before, survey activity (based on visual 6. Mitigation Requirements: The during, and 60 minutes after all survey observation) at received levels greater Holder of this Authorization is required activities and call for delay or shutdown than or equal to 160 dB re 1 mPa (rms) to implement the following mitigation if any marine mammal is observed and/or 180 dB re 1 mPa (rms) for requirements when conducting the approaching or within the 500-m cetaceans and 190 dB re 1 mPa (rms) for specified activities to achieve the least exclusion zone. Should a marine pinnipeds with a discussion of any practicable impact on affected marine mammal not included in an incidental specific behaviors those individuals mammal species or stocks: take authorization be observed at any exhibited. (a). Establishment of an exclusion time within the 500-m exclusion zone, (iv). A description of the zone—During all survey activities shut down and delay procedures shall implementation and effectiveness of the involving the shallow-penetration and be followed. mitigation measures of the Incidental medium-penetration subbottom The Holder shall provide additional Harassment Authorization. profilers, a 500-m radius exclusion zone monitoring efforts to increase (b). Submit a final report to the Chief, shall be established around each survey knowledge of marine mammal species Permits and Conservation Division, vessel. This area will be monitored for in Nantucket Sound. At least one Office of Protected Resources, NMFS, marine mammals 60 minutes prior to NMFS-approved protected species 1315 East-West Highway, Silver Spring, starting or restarting surveys, during observer shall conduct behavioral Maryland 20910, within 30 days after surveys, and 60 minutes after survey monitoring from the survey vessel for 2 receiving comments from NMFS on the equipment has been turned off. The days, every 14 days of survey activity, draft report. If NMFS decides that the exclusion zone must not be obscured by to estimate take and evaluate the draft report needs no comments, the fog or poor lighting conditions. behavioral impacts that survey activities draft report shall be considered the final (b). Shut down and delay have on marine mammals outside of the report. procedures—If a protected species 500-m exclusion zone. In addition, a (c). In the unanticipated event that the observer sees a marine mammal within separate vessel with a NMFS-approved survey operations clearly cause the take or approaching the exclusion zone prior protected species observer shall collect of a marine mammal in a manner to the start of sound sources, the data on species presence and behavior prohibited by this Authorization, such observer will notify the appropriate before surveys begin and once a month as an injury (Level A harassment), individual who will then be required to during survey activities. serious injury, or mortality (e.g., ship- delay the start of sound sources or shut Protected species observers shall be strike, gear interaction, and/or down sound sources until the marine provided with the equipment necessary entanglement), CWA shall immediately mammal moves outside of the exclusion to effectively monitor for marine cease survey operations and report the zone or if the animal has not been mammals (e.g., high-quality binoculars, incident to the Chief of the Permits and

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Conservation Division, Office of not associated with or related to the ACTION: Notice; affirmative finding Protected Resources, NMFS, at 301– activities authorized in Condition 2 of annual renewal. 427–8401 and/or by email to this Authorization (e.g., previously [email protected] and wounded animal, carcass with moderate SUMMARY: The Assistant Administrator [email protected] and the to advanced decomposition, or for Fisheries, NMFS, (Assistant Northeast Regional Stranding scavenger damage), CWA shall report Administrator) has granted an Coordinator ([email protected]). the incident to the Chief of the Permits affirmative finding annual renewal to The report must include the following and Conservation Division, Office of the Government of Guatemala under the information: Protected Resources, NMFS, at 301– Marine Mammal Protection Act (i) Time, date, and location (latitude/ 427–8401, and/or by email to (MMPA). This affirmative finding longitude) of the incident; [email protected] and renewal will allow yellowfin tuna and (ii) The name and type of vessel [email protected] and the yellowfin tuna products harvested in involved; NMFS Northeast Stranding Hotline the eastern tropical Pacific Ocean (ETP) (iii) The vessel’s speed during and (866–755–6622) and/or by email to the in compliance with the International leading up to the incident; Northeast Regional Stranding Dolphin Conservation Program (IDCP) (iv) Description of the incident; Coordinator ([email protected]), by Guatemalan-flag purse seine vessels (v) Status of all sound source use in within 24 hours of the discovery. CWA or purse seine vessels operating under the 24 hours preceding the incident; shall provide photographs or video Guatemalan jurisdiction to be imported (vi) Water depth; footage (if available) or other into the United States. The affirmative (vii) Environmental conditions (e.g., documentation of the stranded animal finding annual renewal was based on wind speed and direction, Beaufort sea sighting to NMFS and the Marine review of documentary evidence state, cloud cover, and visibility); Mammal Stranding Network. Activities submitted by the Government of (viii) Description of marine mammal may continue while NMFS reviews the Guatemala and obtained from the Inter- observations in the 24 hours preceding circumstances of the incident. American Tropical Tuna Commission the incident; 10. A copy of this Authorization must (IATTC). (ix) Species identification or be in the possession of all contractors DATES: The affirmative finding annual description of the animal(s) involved; and protected species observers renewal is effective from April 1, 2013, (x) The fate of the animal(s); and operating under the authority of this through March 31, 2014. (xi) Photographs or video footage of Incidental Harassment Authorization. the animal (if equipment is available). FOR FURTHER INFORMATION CONTACT: 11. Penalties and Permit Sanctions Justin Greenman, West Coast Region, Activities shall not resume until Any person who violates any NMFS is able to review the National Marine Fisheries Service, 501 provision of this Incidental Harassment W. Ocean Blvd., Long Beach, CA 90802. circumstances of the prohibited take. Authorization is subject to civil and NMFS shall work with CWA to Phone: 562–980–3264, Email: criminal penalties, permit sanctions, [email protected]. determine what is necessary to and forfeiture as authorized under the minimize the likelihood of further MMPA. SUPPLEMENTARY INFORMATION: The prohibited take and ensure MMPA MMPA, 16 U.S.C. 1361 et seq., allows compliance. CWA may not resume their Request for Public Comments the entry into the United States of activities until notified by NMFS via NMFS requests comment on our yellowfin tuna harvested by purse seine letter, email, or telephone. analysis, the draft authorization, and vessels in the ETP under certain (d). In the event that CWA discovers any other aspect of the Notice of conditions. If requested by the an injured or dead marine mammal, and Proposed IHA for CWA’s high harvesting nation, the Assistant the lead protected species observer resolution geophysical survey. Please Administrator will determine whether determines that the cause of the injury include with your comments any to make an affirmative finding based or death is unknown and the death is supporting data or literature citations to upon documentary evidence provided relatively recent (i.e., in less than a help inform our final decision on by the government of the harvesting moderate state of decomposition as CWA’s request for an MMPA nation, the IATTC, or the Department of described in the next paragraph), CWA authorization. State. The affirmative finding process will immediately report the incident to Dated: January 29, 2014. the Chief of the Permits and requires that the harvesting nation is Donna S. Wieting, Conservation Division, Office of meeting its obligations under the IDCP Protected Resources, NMFS, at 301– Director, Office of Protected Resources, and obligations of membership in the National Marine Fisheries Service. 427–8401, and/or by email to IATTC. Every 5 years, the government of [email protected] and [FR Doc. 2014–02162 Filed 1–31–14; 8:45 am] the harvesting nation must request an [email protected] and the BILLING CODE 3510–22–P affirmative finding and submit the Northeast Regional Stranding required documentary evidence directly Coordinator at 978–281–9300 DEPARTMENT OF COMMERCE to the Assistant Administrator. NMFS ([email protected]). The report reviews the affirmative finding and must include the same information National Oceanic and Atmospheric determine whether the harvesting identified in the paragraph above. Administration nation continues to meet the Activities may continue while NMFS requirements. A nation may provide reviews the circumstances of the RIN 0648–XD089 information related to compliance with incident. NMFS will work with CWA to Taking and Importing of Marine IDCP and IATTC measures directly to determine whether modifications to the Mammals NMFS on an annual basis or may activities are appropriate. authorize the IATTC to release the (e). In the event that CWA discovers AGENCY: National Marine Fisheries information to NMFS to annually renew an injured or dead marine mammal, and Service (NMFS), National Oceanic and an affirmative finding determination the lead protected species observer Atmospheric Administration (NOAA), without an application from the determines that the injury or death is Commerce. harvesting nation.

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An affirmative finding will be by Spanish-flag purse seine vessels or Spain has met the MMPA’s terminated, in consultation with the purse seine vessels operating under requirements to receive an affirmative Secretary of State, if the Assistant Spanish jurisdiction to be imported into finding annual renewal. Administrator determines that the the United States. The affirmative After consultation with the requirements of 50 CFR 216.24(f) are no finding annual renewal was based on Department of State, the Assistant longer being met or that a nation is review of documentary evidence Administrator issued an affirmative consistently failing to take enforcement submitted by the Government of Spain finding annual renewal to Spain, actions on violations, thereby and obtained from the Inter-American allowing the continued importation into diminishing the effectiveness of the Tropical Tuna Commission (IATTC). the United States of yellowfin tuna and IDCP. DATES: The affirmative finding annual products derived from yellowfin tuna As a part of the affirmative finding renewal is effective from April 1, 2013, harvested in the ETP by Spanish-flag process set forth in 50 CFR 216.24(f), the through March 31, 2014. purse seine vessels or purse seine vessels operating under Spanish Assistant Administrator considered FOR FURTHER INFORMATION CONTACT: jurisdiction through March 31, 2014. documentary evidence submitted by the Justin Greenman, West Coast Region, Spain’s five-year affirmative finding will Government of Guatemala or obtained National Marine Fisheries Service, 501 remain valid through March 31, 2015, from the IATTC and has determined W. Ocean Blvd., Long Beach, CA 90802. subject to subsequent annual reviews by that Guatemala has met the Phone: 562–980–3264 Email: NMFS. requirements under the MMPA to [email protected] receive an annual renewal of their SUPPLEMENTARY INFORMATION: The Dated: January 24, 2014. affirmative finding. Samuel D. Rauch III, After consultation with the MMPA, 16 U.S.C. 1361 et seq., allows the entry into the United States of Deputy Assistant Administrator for Department of State, the Assistant Regulatory Programs, performing the Administrator issued Guatemala’s yellowfin tuna harvested by purse seine vessels in the ETP under certain functions and duties of the Assistant affirmative finding annual renewal, Administrator for Fisheries. allowing the continued importation into conditions. If requested by the harvesting nation, the Assistant [FR Doc. 2014–02181 Filed 1–31–14; 8:45 am] the United States of yellowfin tuna and BILLING CODE 3510–22–P products derived from yellowfin tuna Administrator will determine whether harvested in the ETP by Guatemalan- to make an affirmative finding based flag purse seine vessels or purse seine upon documentary evidence provided DEPARTMENT OF COMMERCE vessels operating under Guatemalan by the government of the harvesting jurisdiction through March 31, 2014. nation, the IATTC, or the Department of National Oceanic and Atmospheric State. Administration Dated: January 24, 2014. The affirmative finding process Samuel D. Rauch III, requires that the harvesting nation is RIN 0648–XD088 Deputy Assistant Administrator for meeting its obligations under the IDCP Taking and Importing of Marine Regulatory Programs, performing the and obligations of membership in the Mammals functions and duties of the Assistant IATTC. Every 5 years, the government of Administrator for Fisheries. the harvesting nation must request a AGENCY: National Marine Fisheries [FR Doc. 2014–02173 Filed 1–31–14; 8:45 am] new affirmative finding and submit the Service (NMFS), National Oceanic and BILLING CODE 3510–22–P required documentary evidence directly Atmospheric Administration (NOAA), to the Assistant Administrator. On an Commerce. annual basis, NMFS reviews the ACTION: DEPARTMENT OF COMMERCE Notice; new 5-year affirmative affirmative finding and determines finding. National Oceanic and Atmospheric whether the harvesting nation continues SUMMARY: The Assistant Administrator Administration to meet the requirements. A nation may provide information related to for Fisheries, NMFS, (Assistant RIN 0648–XD090 compliance with IDCP and IATTC Administrator) has issued a new 5-year measures directly to NMFS on an affirmative finding for the Government Taking and Importing of Marine annual basis or may authorize the of El Salvador under the Marine Mammals IATTC to release the information to Mammal Protection Act (MMPA). This AGENCY: National Marine Fisheries NMFS to annually renew an affirmative affirmative finding will allow yellowfin Service (NMFS), National Oceanic and finding determination without an tuna and yellowfin tuna products Atmospheric Administration (NOAA), application from the harvesting nation. harvested in the eastern tropical Pacific Commerce. An affirmative finding will be Ocean (ETP) in compliance with the International Dolphin Conservation ACTION: Notice; affirmative finding terminated, in consultation with the Program (IDCP) by Salvadoran-flag annual renewal. Secretary of State, if the Assistant Administrator determines that the purse seine vessels or purse seine SUMMARY: The Assistant Administrator requirements of 50 CFR 216.24(f) are no vessels operating under Salvadoran for Fisheries, NMFS, (Assistant longer being met or that a nation is jurisdiction to be imported into the Administrator) has issued an affirmative consistently failing to take enforcement United States. The affirmative finding finding annual renewal for the actions on violations, thereby was based on review of documentary Government of Spain under the Marine diminishing the effectiveness of the evidence submitted by the Government Mammal Protection Act (MMPA). This IDCP. of El Salvador and obtained from the affirmative finding annual renewal will As a part of the affirmative finding Inter-American Tropical Tuna allow yellowfin tuna and yellowfin tuna process set forth in 50 CFR 216.24(f), the Commission (IATTC) and the U.S. products harvested in the eastern Assistant Administrator considered Department of State. tropical Pacific Ocean (ETP) in documentary evidence submitted by the DATES: The new 5-year affirmative compliance with the International Government of Spain and obtained from finding is effective from April 1, 2013, Dolphin Conservation Program (IDCP) the IATTC and has determined that through March 31, 2018.

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FOR FURTHER INFORMATION CONTACT: seine vessels or purse seine vessels visiting the internet at: http:// Justin Greenman, West Coast Region, operating under Salvadoran jurisdiction. www.nmfs.noaa.gov/pr/permits/ National Marine Fisheries Service, 501 El Salvador’s affirmative finding will incidental.htm#applications. W. Ocean Blvd., Long Beach, CA 90802. remain valid through March 31, 2018. Documents cited in this notice may be Phone: 562–980–3264 Email: Dated: January 24, 2014. viewed, by appointment, during regular [email protected] Samuel D. Rauch III, business hours, at the aforementioned address. SUPPLEMENTARY INFORMATION: The Deputy Assistant Administrator for MMPA, 16 U.S.C. 1361 et seq., allows Regulatory Programs, performing the FOR FURTHER INFORMATION CONTACT: the entry into the United States of functions and duties of the Assistant Jeannine Cody, NMFS, Office of yellowfin tuna harvested by purse seine Administrator for Fisheries. Protected Resources, NMFS, (301) 427– vessels in the ETP under certain [FR Doc. 2014–02172 Filed 1–31–14; 8:45 am] 8401. conditions. If requested by the BILLING CODE 3510–22–P SUPPLEMENTARY INFORMATION: harvesting nation, the Assistant Administrator will determine whether Background to make an affirmative finding based DEPARTMENT OF COMMERCE Section 101(a)(5)(D) of the Marine upon documentary evidence provided Mammal Protection Act (MMPA; 16 by the government of the harvesting National Oceanic and Atmospheric U.S.C. 1361 et seq.) directs the Secretary nation, the IATTC, or the Department of Administration of Commerce to authorize, upon request, State. RIN 0648–XC350 the incidental, but not intentional, The affirmative finding process taking of small numbers of marine requires that the harvesting nation is Takes of Marine Mammals Incidental to mammals of a species or population meeting its obligations under the IDCP Specified Activities; St. George Reef stock, by United States citizens who and obligations of membership in the Light Station Restoration and engage in a specified activity (other than IATTC. Every 5 years, the government of Maintenance at Northwest Seal Rock, commercial fishing) within a specified the harvesting nation must request an Del Norte County, California geographical region if: (1) We make affirmative finding and submit the certain findings; (2) the taking is limited AGENCY: National Marine Fisheries required documentary evidence directly to harassment; and (3) we provide a Service (NMFS), National Oceanic and to the Assistant Administrator. On an notice of a proposed authorization to the Atmospheric Administration (NOAA), annual basis, NMFS reviews the public for review. affirmative finding and determine Commerce. We shall allow authorization for the whether the harvesting nation continues ACTION: Notice; issuance of an incidental incidental taking of small numbers of to meet the requirements. A nation may take authorization. marine mammals if we find that the provide information related to taking will have a negligible impact on SUMMARY: In accordance with the compliance with IDCP and IATTC regulations implementing the Marine the species or stock(s), and will not have measures directly to NMFS on an Mammal Protection Act (MMPA) as an unmitigable adverse impact on the annual basis or may authorize the amended, notification is hereby given availability of the species or stock(s) for IATTC to release the information to that we, NMFS, have issued an subsistence uses (where relevant). The NMFS to annually renew an affirmative Incidental Harassment Authorization authorization must set forth the finding determination without an (Authorization) to the St. George Reef permissible methods of taking; other application from the harvesting nation. Lighthouse Preservation Society means of effecting the least practicable An affirmative finding will be (Society) to take four species of marine adverse impact on the species or stock terminated, in consultation with the mammals, by Level B harassment only, and its habitat (i.e., mitigation); and Secretary of State, if the Assistant incidental to conducting helicopter requirements pertaining to the Administrator determines that the operations, and lighthouse renovation monitoring and reporting of such requirements of 50 CFR 216.24(f) are no and light maintenance activities on the takings. We have defined ‘‘negligible longer being met or that a nation is St. George Reef Light Station on impact’’ in 50 CFR 216.103 as ‘‘an consistently failing to take enforcement Northwest Seal Rock (NWSR) offshore impact resulting from the specified actions on violations, thereby of Crescent City, California in the activity that cannot be reasonably diminishing the effectiveness of the northeast Pacific Ocean, from the period expected to, and is not reasonably likely IDCP. of November 2013 through December to, adversely affect the species or stock As a part of the affirmative finding 2013. through effects on annual rates of process set forth in 50 CFR 216.24(f), the recruitment or survival.’’ Assistant Administrator considered DATES: This authorization is effective Section 101(a)(5)(D) of the MMPA documentary evidence submitted by the from November 25, 2013, through established an expedited process by Government of El Salvador or obtained December 31, 2013. which citizens of the United States can from the IATTC and the Department of ADDRESSES: A copy of the Authorization apply for an authorization to State and has determined that El and application are available by writing incidentally take marine mammals by Salvador has met the MMPA’s to P. Michael Payne, Chief, Permits and harassment. Section 101(a)(5)(D) of the requirements to receive a new 5-year Conservation Division, Office of MMPA establishes a 45-day time limit affirmative finding. Protected Resources, National Marine for our review of an application After consultation with the Fisheries Service, 1315 East-West followed by a 30-day public notice and Department of State, the Assistant Highway, Silver Spring, MD 20910. An comment period on any proposed Administrator issued El Salvador’s new electronic copy of the application authorization for the incidental 5-year affirmative finding, allowing the containing a list of the references used harassment of small numbers of marine continued importation into the United in this document may be obtained by mammals. Within 45 days of the close States of yellowfin tuna and products writing to the above address, of the public comment period, we must derived from yellowfin tuna harvested telephoning the contact listed here (see either issue or deny the authorization in the ETP by Salvadoran-flag purse FOR FURTHER INFORMATION CONTACT) or and must publish a notice in the

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Federal Register within 30 days of our To date, we have issued three 1-year operations, lighthouse restoration, and determination to issue or deny the Authorizations to the Society for the lighthouse maintenance on NWSR are authorization. conduct of the same activities from 2009 the California sea lion, the Pacific Except with respect to certain to 2012. This will be the Society’s fourth harbor seal, and the eastern Pacific stock activities not pertinent here, the Marine Authorization for the same activities for of northern fur seal, and the eastern Mammal Protection Act defines the remainder of the 2013 season. Distinct Population Segment (DPS) of ‘‘harassment’’ as: any act of pursuit, Description of the Specified Activity Steller sea lion which NMFS has torment, or annoyance which (i) has the and Specified Geographic Region removed from the list of threatened potential to injure a marine mammal or The Society would conduct aircraft species under the U.S. Endangered marine mammal stock in the wild [Level Species Act of 1973 (ESA; 16 U.S.C. A harassment]; or (ii) has the potential operations, lighthouse restoration, and light maintenance activities between 1531 et seq.), effective in November, to disturb a marine mammal or marine 2013. Steller sea lions and northern fur mammal stock in the wild by causing November 25, 2013, through December 31, 2013, at a maximum frequency of seals are not listed as threatened or disruption of behavioral patterns, endangered under the ESA but are including, but not limited to, migration, one session per month. The duration for categorized as depleted under the breathing, nursing, breeding, feeding, or each session would last no more than MMPA. California sea lions and Pacific sheltering [Level B harassment]. three days (e.g., Friday, Saturday, and Sunday). harbor seals are not listed as threatened Summary of Request The Station is located on a small, or endangered under the ESA nor are ° ′ ″ ° ′ ″ We received an application on May 8, rocky islet (41 50 24 N, 124 22 06 W) they categorized as depleted under the 2012, from the Society for the taking by approximately nine kilometers (km) (6.0 MMPA. miles (mi)) in the northeast Pacific harassment, of marine mammals, Potential Effects of the Activity on incidental to conducting aircraft Ocean, offshore of Crescent City, California (Latitude: 41°46′48″ N; Marine Mammals operations and restoration and ° ′ ″ maintenance activities on the St. George Longitude: 124 14 11 W). Acoustic and visual stimuli generated We outlined the purpose of the Reef Light Station (Station) for the 2013 by: (1) Helicopter landings/takeoffs; (2) Society’s activities in a previous notice season. We determined that application for the proposed authorization (78 FR noise generated during restoration complete and adequate on November 1838, January 9, 2013). The proposed activities (e.g., painting, plastering, 27, 2012 and made the complete activities have not changed between the welding, and glazing); and (3) application available for public proposed authorization notice and this maintenance activities (e.g., bulb comment (see ADDRESSES) in January final notice announcing the issuance of replacement and automation of the light 2013. the Authorization. For a more detailed system) may have the potential to cause The Society’s restoration activities description of the authorized action, Level B harassment of any pinnipeds would: (1) Restore and preserve the including aircraft and acoustic source hauled out on NWSR. The effects of Station on a monthly basis (November specifications, the reader should refer to sounds from helicopter operations and/ through December); and (2) perform the notice for the proposed or restoration and maintenance periodic, annual maintenance on the authorization (78 FR 1838, January 9, activities might include one of the Station’s optical light system. The 2013). following: temporary or permanent Station, which is listed in the National hearing impairment or behavioral Park Service’s National Register of Comments and Responses disturbance (Southall, et al., 2007). Historic Places, is located on NWSR We published a notice of receipt of offshore of Crescent City, California in the Society’s application and proposed The notice for the proposed the northeast Pacific Ocean. Authorization in the Federal Register Authorization (78 FR 1838, January 9, The specified activities would occur on January 9, 2013 (78 FR 1838). During 2013) included a discussion of the in the vicinity of a possible pinniped the 30-day comment period, we effects of sounds from: (1) The sound haul out site located on NWSR. received one comment from the Marine levels produced by the helicopter; (2) Acoustic and visual stimuli generated Mammal Commission (Commission) behavioral reactions (or lack thereof) of by: (1) Helicopter landings/takeoffs; (2) which recommended that we issue the pinnipeds to helicopter operations and noise generated during restoration requested Authorization, provided that light construction noise; (3) hearing activities (e.g., painting, plastering, the required monitoring and mitigation impairment and other non-auditory welding, and glazing); (3) maintenance measures are carried out (e.g., physical effects; (4) behavioral reactions activities (e.g., bulb replacement and restrictions on the timing and frequency to visual stimuli; (5) and specific automation of the light system); and (4) of activities, restrictions on helicopter observations gathered during previous human presence, may have the potential approaches, timing measures for monitoring of the marine mammals to cause any pinnipeds hauled out on helicopter landings, and measures to present on NWSR. We have reviewed NWSR to flush into the surrounding minimize acoustic and visual these data and determined them to be water or to cause a short-term disturbances) as described in the notice the best available information for the behavioral disturbance. These types of of the proposed authorization (78 FR purposes of this Authorization. disturbances are the principal means of 1838, January 9, 2013) and the marine mammal taking associated with application. We have included all To summarize, the effects of the these activities and the Society has measures proposed in the notice of the Society’s helicopter operations and requested an authorization to take 204 proposed authorization (78 FR 1838, restoration activities on the marine California sea lions (Zalophus January 9, 2013) in the Authorization. mammals present on NWSR would californianus); 36 Pacific Harbor seals range from no response to a short-term (Phoca vitulina); 172 Steller sea lions Description of Marine Mammals in the startle response. These behavioral (Eumetopias jubatus); and six northern Area of the Specified Activity changes have the potential to cause the fur seals (Callorhinus ursinus) by Level The marine mammal species likely to animals to haul-out leading to B harassment. be harassed incidental to helicopter

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temporary displacement from the island (3) Avoidance of visual and acoustic (3) The practicability of the measure and we expect no permanent contact with marine mammals by the for applicant implementation. abandonment of NWSR by the animals. Society and/or its designees. Based on our evaluation of the Finally, we anticipate that there will be Time and Frequency: The Society will applicant’s mitigation measures, we no instances of injury or mortality conduct lighthouse restoration activities have determined that the mitigation during the project. No activities would at maximum frequency of once per measures provide the means of effecting occur on pinniped rookeries and we do month between November 25, 2013 the least practicable adverse impacts on not expect mother and pup separation through December 31, 2013. Each marine mammals species or stocks and or crushing of pups to occur. restoration session will last no more their habitat, paying particular attention than three days. Maintenance of the to rookeries, mating grounds, and areas Anticipated Effects on Marine Mammal light beacon will occur only in of similar significance. Habitat conjunction with restoration activities. Monitoring The notice for the proposed Helicopter Approach and Timing In order to issue an incidental take Authorization (78 FR 1838, January 9, Techniques: The Society shall ensure authorization for an activity, section 2013) included a discussion of the that helicopter approach patterns to the 101(a)(5)(D) of the Marine Mammal potential effects of this action on marine lighthouse will be such that the timing Protection Act states that we must set techniques are least disturbing to mammal habitat, including forth ‘‘requirements pertaining to the marine mammals. To the extent physiological and behavioral effects on monitoring and reporting of such possible, the helicopter should marine fish and invertebrates. While we taking.’’ The Act’s implementing approach NWSR when the tide is too anticipate that the specified activity regulations at 50 CFR 216.104(a)(13) may result in marine mammals avoiding high for the marine mammals to haulout indicate that requests for an NWSR during the helicopter operations on NWSR. authorization must include the and restoration activities, this impact to Since the most severe impacts suggested means of accomplishing the habitat is temporary and reversible. We (stampede) are precipitated by rapid and necessary monitoring and reporting that consider the impacts of avoidance in the direct helicopter approaches, initial will result in increased knowledge of notice for the proposed Authorization approach to the Station must be offshore the species and our expectations of the (78 FR 1838, January 9, 2013) as from the island at a relatively high level of taking or impacts on behavioral modification. altitude (e.g., 244–305 meters; 800– populations of marine mammals present 1,000 feet,). Before the final approach, Mitigation in the action area. the helicopter shall circle lower, and The Society continues to sponsor In order to issue an incidental take approach from area where the density of marine mammal monitoring to authorization under section 101(a)(5)(D) pinnipeds is the lowest. If for any safety implement the mitigation measures that of the Marine Mammal Protection Act, reasons (e.g., wind condition) such require real-time monitoring and to we must set forth the permissible helicopter approach and timing satisfy the monitoring requirements of methods of taking pursuant to such techniques cannot be achieved, the the incidental harassment authorization. activity, and other means of effecting Society must abort the restoration and At least once during the period between the least practicable adverse impact on maintenance activities for that day. November 15, 2013 through December such species or stock and its habitat, Avoidance of Visual and Acoustic 31, 2013, the Society will have a paying particular attention to rookeries, Contact with Marine Mammals: The qualified biologist present during all mating grounds, and areas of similar Society’s members and restoration three workdays at the Station. The significance, and the availability of such crews shall be instructed to avoid biologist shall document use of the species or stock for taking for certain making unnecessary noise and not island by the pinnipeds, frequency, (i.e., subsistence uses. expose themselves visually to pinnipeds dates, time, tidal height, species, The Society has based the mitigation around the base of the lighthouse. The numbers present, and any disturbances), measures which they will implement door to the lower platform (which is and note any responses to potential during the proposed helicopter used at times by pinnipeds) shall disturbances. In the event of any operations and restoration activities, on remain closed and barricaded. observed Steller sea lion injury, the following: (1) Protocols used during Mitigation Conclusions mortality, or the presence of newborn previous Authorizations for helicopter pup, the Society will notify the NMFS operations and restoration activities as We have carefully evaluated the SWRO Administrator and the NMFS approved by us; (2) recommended best Society’s proposed mitigation measures Director of Office of Protected Resources practices in Richardson et al. (1995); and have considered a range of other immediately. and (3) reasonable and prudent measures in the context of ensuring that Aerial photographic surveys may measures implemented by the terms and we have prescribed the means of provide the most accurate means of conditions of previous section 7 ESA effecting the least practicable adverse documenting species composition, age Biological Opinion (BiOp) Incidental impact on the affected marine mammal and sex class of pinnipeds using the Take Statement (ITS). species and stocks and their habitat. Our project site during human activity evaluation of potential measures periods. The Society will photograph To reduce the potential for included consideration of the following the island from the same helicopter disturbance from acoustic and visual factors in relation to one another: used to transport the Society’s stimuli associated with the activities, (1) The manner in which, and the personnel to the island during the Society and/or its designees will degree to which, we expect that the restoration trips. A skilled photographer implement the following mitigation successful implementation of the shall take photographs of all marine measures for marine mammals: measure would minimize adverse mammals hauled out on the island at an (1) Limit the time and frequency of impacts to marine mammals; altitude greater than 300 meters (984 the restoration activities; (2) The proven or likely efficacy of the feet), prior to the first landing on each (2) Employ helicopter approach and specific measure to minimize adverse visit included in the monitoring timing techniques; and impacts as planned; and program. The Society will provide to us

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photographic documentation of marine Regional Administrator and the Director necessary to minimize the likelihood of mammals present at the end of each of Office of Protected Resources at further prohibited take and ensure three-day work session for a before and NMFS Headquarters. Within 30 days MMPA compliance. The Society may after comparison. The Society will after receiving comments from NMFS on not resume their activities until notified forward these photographs to a biologist the draft Final Monitoring Report, the by us via letter, email, or telephone. capable of discerning marine mammal Society must submit a Final Monitoring In the event that the Society discovers species. Report to the Regional Administrator an injured or dead marine mammal, and The Society shall provide the data to and the NMFS Director of Office of the biologist (if present) determines that NMFS in the form of a report with a Protected Resources. If the Society the cause of the injury or death is data table, any other significant receives no comments from us on the unknown and the death is relatively observations related to marine draft Final Monitoring Report, we will recent (i.e., in less than a moderate state mammals, and a report of restoration consider the draft Final Monitoring of decomposition as described in the activities (see Reporting). The Society Report to be the final version. next paragraph), the Society will will also provide the original The final report will provide: immediately report the incident to the photographs to us or other marine (i) A summary and table of the dates, Chief of the Permits and Conservation mammal experts for inspection and times, and weather during all helicopter Division, Office of Protected Resources, further analysis. operations, and restoration and NMFS, at (301) 427–8401 and/or by maintenance activities. email to [email protected] and Reporting (ii) Species, number, location, and [email protected] and to the The Society’s personnel will record behavior of any marine mammals, Southwest Regional Stranding data to document the number of marine observed throughout all monitoring Coordinator at (562) 980–3230 mammals exposed to helicopter noise activities. ([email protected]). The report and to document apparent disturbance (iii) An estimate of the number (by must include the same information reactions or lack thereof. The Society species) of marine mammals that are identified in the paragraph above. and NMFS will use the data to estimate known to have been exposed to acoustic Activities may continue while we numbers of animals potentially taken by stimuli associated with the helicopter review the circumstances of the Level B harassment. operations, restoration and maintenance incident. We will work with the Society activities. to determine whether modifications in Interim Monitoring Report (iv) A description of the the activities are appropriate. The Society will submit interim implementation and effectiveness of the In the event that the Society discovers monitoring reports to the NMFS SWRO monitoring and mitigation measures of an injured or dead marine mammal, and Administrator and the NMFS Director of the Authorization and full the lead biologist (if present) determines Office of Protected Resources no later documentation of methods, results, and that the injury or death is not associated than 30 days after the conclusion of interpretation pertaining to all with or related to the activities each monthly session. The interim monitoring. authorized in the Authorization (e.g., report will describe the operations that In the unanticipated event that the previously wounded animal, carcass were conducted and sightings of marine specified activity clearly causes the take with moderate to advanced mammals near the project. The report of a marine mammal in a manner decomposition, or scavenger damage), will provide full documentation of prohibited by the Authorization (if the Society will report the incident to methods, results, and interpretation issued), such as an injury (Level A the Chief of the Permits and pertaining to all monitoring. harassment), serious injury or mortality Conservation Division, Office of Each interim report will provide: (e.g., stampede), the Society shall Protected Resources, NMFS, at (301) (i) A summary and table of the dates, immediately cease the specified 427–8401 and/or by email to times, and weather during all helicopter activities and immediately report the [email protected] and operations, and restoration and incident to the Chief of the Permits and [email protected] and to the maintenance activities. Conservation Division, Office of Southwest Regional Stranding (ii) Species, number, location, and Protected Resources, NMFS, at (301) Coordinator at (562) 980–3230 behavior of any marine mammals, 427–8401 and/or by email to ([email protected]), within 24 observed throughout all monitoring [email protected] and hours of the discovery. The Society will activities. [email protected] and to the provide photographs or video footage (if (iii) An estimate of the number (by Southwest Regional Stranding available) or other documentation of the species) of marine mammals that are Coordinator at (562) 980–3230 stranded animal sighting to us. known to have been exposed to acoustic ([email protected]). Estimated Take by Incidental stimuli associated with the helicopter The report must include the following Harassment operations, restoration and maintenance information: activities. • Time, date, and location (latitude/ Except with respect to certain (iv) A description of the longitude) of the incident; activities not pertinent here, the Marine implementation and effectiveness of the • Environmental conditions (e.g., Mammal Protection Act defines monitoring and mitigation measures of wind speed and direction, Beaufort sea ‘‘harassment’’ as: Any act of pursuit, the Authorization and full state, cloud cover, and visibility); torment, or annoyance which (i) has the documentation of methods, results, and • Species identification or potential to injure a marine mammal or interpretation pertaining to all description of the animal(s) involved; marine mammal stock in the wild [Level monitoring. • Fate of the animal(s); and A harassment]; or (ii) has the potential • Photographs or video footage of the to disturb a marine mammal or marine Final Monitoring Report animal(s) (if equipment is available). mammal stock in the wild by causing In addition to the interim reports, the Activities will not resume until we disruption of behavioral patterns, Society will submit a draft Final are able to review the circumstances of including, but not limited to, migration, Monitoring Report to us no later than 90 the prohibited take. We will work with breathing, nursing, breeding, feeding, or days after the project is completed to the the Society to determine what is sheltering [Level B harassment].

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We anticipate and authorize take by Negligible Impact and Small Numbers activities are not likely to cause Level B harassment only for the Analysis and Determination permanent threshold shift, or other non- proposed helicopter operations and We typically include our negligible auditory injury, serious injury, or death restoration and maintenance activities impact and small numbers analyses and because: (1) The likelihood that, given on NWSR. Acoustic (i.e., increased determinations under the same section sufficient notice through relatively slow sound) and visual stimuli generated heading of our Federal Register notices. helicopter approaches, we expect during these proposed activities may Despite co-locating these terms, we marine mammals to gradually move have the potential to cause marine acknowledge that negligible impact and away from a noise source that is mammals in the harbor area to small numbers are distinct standards annoying prior to its becoming experience temporary, short-term under the MMPA and treat them as changes in behavior. potentially injurious; and such. The analyses presented below do (2) The potential for temporary or Based on pinniped survey counts not conflate the two standards; instead, permanent hearing impairment is conducted by CCR on NWSR in the each standard has been considered relatively low and would likely be spring of 1997, 1998, 1999, and 2000 independently and we have applied the avoided through the incorporation of (CCR, 2001), we estimate that relevant factors to inform our negligible the required monitoring and mitigation approximately 204 California sea lions impact and small numbers measures. (calculated by multiplying the average determinations. We do not anticipate takes by Level A monthly abundance of California sea We have defined ‘‘negligible impact’’ harassment, serious injury, or mortality lions (zero in April, 1997 and 34 in in 50 CFR 216.103 as ‘‘. . . an impact to occur as a result of the Society’s April, 1998) present on NWSR by 6 resulting from the specified activity that specified activities. We are not months of the restoration and cannot be reasonably expected to, and is authorizing Level A harassment for this maintenance activities), 172 Steller sea not reasonably likely to, adversely affect specified activity. We only anticipate lions (NMFS’ estimate of the maximum the species or stock through effects on short-term behavioral disturbance to number of Steller sea lions that could be annual rates of recruitment or survival.’’ occur due to the brief and sporadic present on NWSR with a 95-percent In making a negligible impact duration of the activities; the confidence interval), 36 Pacific harbor determination, we consider: availability of alternate areas near seals (calculated by multiplying the (1) The number of anticipated NWSR for marine mammals to avoid the maximum number of harbor seals injuries, serious injuries, or mortalities; resultant acoustic disturbance; and present on NWSR (6) by 6 months), and (2) The number, nature, and intensity, limited access to NWSR during the 6 northern fur seals (calculated by and duration of Level B harassment; and pupping season. multiplying the maximum number of (3) The context in which the takes These species may exhibit behavioral northern fur seals present on NWSR (1) occur (e.g., impacts to areas of modifications, including temporarily by 6 months) could be potentially significance, impacts to local vacating the area during the proposed affected by Level B behavioral populations, and cumulative impacts activities to avoid the resultant acoustic harassment over the course of the when taking into account successive/ and visual disturbances. Further, these Authorization. Estimates of the numbers contemporaneous actions when added proposed activities would not take place of marine mammals that might be to baseline data); in areas of significance for marine affected are based on consideration of (4) The status of stock or species of mammal feeding, resting, breeding, or the number of marine mammals that marine mammals (i.e., depleted, not calving and would not adversely impact could be disturbed appreciably by depleted, decreasing, increasing, stable, marine mammal habitat. Due to the approximately 51 hours of aircraft impact relative to the size of the nature, degree, and context of the operations during the course of the population); behavioral harassment anticipated, the activity. For this Authorization, we (5) Impacts on habitat affecting rates activities are not expected to impact authorize the take of 204 California sea of recruitment/survival; and rates of recruitment or survival. Based lions, 172 Stellar sea lions, 36 Pacific (6) The effectiveness of monitoring on the analysis contained herein of the harbor seals, and 6 northern fur seals. and mitigation measures. likely effects of the specified activity on As mentioned previously, we estimate marine mammals and their habitat, and There is no evidence that the that four species of marine mammals taking into consideration the Society’s planned activities could result could be potentially affected by Level B implementation of the mitigation and in injury, serious injury or mortality harassment over the course of this monitoring measures, we have within the action area. The required Authorization. For each species, these determined that the total taking from the mitigation and monitoring measures numbers are small numbers (each, less proposed activities will have a will minimize any potential risk for than or equal to two percent) relative to negligible impact on the affected species injury, serious injury, or mortality. the population size. These incidental or stocks; and that impacts to affected Thus, we do not propose to authorize harassment take numbers represent species or stocks of marine mammals any injury, serious injury or mortality. approximately 0.14 percent of the U.S. would be mitigated to the lowest level We expect all potential takes to fall stock of California sea lion, 0.42 percent practicable. under the category of Level B of the eastern U.S. stock of Steller sea harassment only. lion, 0.11 percent of the California stock Impact on Availability of Affected of Pacific harbor seals, and 0.06 percent Species or Stock for Taking for Encouraging and Coordinating Subsistence Uses Research of the San Miguel Island stock of northern fur seal. Section 101(a)(5)(D) of the MMPA The Society will continue to For reasons stated previously in this also requires us to determine that the coordinate monitoring of pinnipeds document and in the notice for the taking will not have an unmitigable during the helicopter operations and proposed Authorization (78 FR 1838, adverse effect on the availability of restoration activities which contribute January 9, 2013), the specified activities marine mammal species or stocks for to the basic knowledge of marine associated with the Society’s helicopter subsistence use. There are no relevant mammal biology on NWSR. operations and restoration/maintenance subsistence uses of marine mammals in

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the study area (northeastern Pacific activity is expected to result in a references cited in this document by Ocean) that implicate section negligible impact on the affected species visiting: http://www.nmfs.noaa.gov/pr/ 101(a)(5)(D) of the MMPA. or stocks of marine mammals. The permits/incidental.htm#applications. In provision requiring that the activity not the case of problems accessing these Endangered Species Act (ESA) have an unmitigable impact on the documents, please call the contact listed On October 23, 2013, NMFS availability of the affected species or here (see FOR FURTHER INFORMATION announced the removal of the eastern stock of marine mammals for CONTACT). distinct population segment of Steller subsistence uses is not implicated for The Environmental Assessment and sea lions from the list of threatened this action. associated Finding of No Significant species under the ESA. With the Impact, prepared pursuant to the delisting, federal agencies proposing Authorization National Environmental Policy Act of actions that may affect the eastern As a result of these determinations, 1969, are also available at the same site. Steller sea lions are no longer required we, NMFS, have issued an Incidental FOR FURTHER INFORMATION CONTACT: to consult with NMFS under section 7 Harassment Authorization to the Society Jeannine Cody, Office of Protected of the ESA. to conduct helicopter operations and Resources, NMFS (301) 427–8401. National Environmental Policy Act restoration and maintenance work on SUPPLEMENTARY INFORMATION: Section (NEPA) the St. George Reef Light Station on 101(a)(5)(D) of the Marine Mammal Northwest Seal Rock in the northeast Protection Act (MMPA; 16 U.S.C. 1361 To meet our NEPA requirements for Pacific Ocean from the period of et seq.) directs the Secretary of the issuance of an Authorization to the November 25, 2013, through December Commerce to authorize, upon request, Society, we prepared an Environmental 31, 2013, provided the previously the incidental, but not intentional, Assessment (EA) in 2010 that was mentioned mitigation, monitoring, and taking of small numbers of marine specific to conducting aircraft reporting requirements are incorporated. mammals of a species or population operations and restoration and stock, by United States citizens who maintenance work on the St. George Dated: January 29, 2014. engage in a specified activity (other than Reef Light Station. The EA, titled Donna S. Wieting, commercial fishing) within a specified ‘‘Issuance of an Incidental Harassment Director, Office of Protected Resources, geographical region if: (1) We make Authorization to Take Marine Mammals National Marine Fisheries Service. certain findings; (2) the taking is limited by Harassment Incidental to Conducting [FR Doc. 2014–02164 Filed 1–31–14; 8:45 am] to harassment; and (3) we provide a Aircraft Operations, Lighthouse BILLING CODE 3510–22–P notice of a proposed authorization to the Restoration and Maintenance Activities public for review. on St. George Reef Lighthouse Station in We shall grant an authorization for DEPARTMENT OF COMMERCE Del Norte County, California,’’ evaluated the incidental taking of small numbers the impacts on the human environment of marine mammals if we find that the of our authorization of incidental Level National Oceanic and Atmospheric Administration taking will have a negligible impact on B harassment resulting from the the species or stock(s), and will not have specified activity in the specified RIN 0648–XC837 an unmitigable adverse impact on the geographic region. At that time, we availability of the species or stock(s) for concluded that issuance of an Takes of Marine Mammals Incidental to subsistence uses (where relevant). Also, Authorization November 1 through Specified Activities; Seabird and the authorization must set forth the April 30, annually would not Pinniped Research Activities in Central permissible methods of taking and significantly affect the quality of the California, 2014–2015 requirements pertaining to the human environment and issued a AGENCY: National Marine Fisheries monitoring and reporting of such Finding of No Significant Impact Service (NMFS), National Oceanic and takings. We have defined ‘‘negligible (FONSI) for the 2010 EA regarding the Atmospheric Administration (NOAA), impact’’ in 50 CFR 216.103 as ‘‘an Society’s activities. In conjunction with Commerce. impact resulting from the specified the Society’s 2013 application, we have activity that cannot be reasonably ACTION: Notice; issuance of an incidental again reviewed the 2010 EA and expected to, and is not reasonably likely harassment authorization. determined that there are no new direct, to, adversely affect the species or stock indirect or cumulative impacts to the SUMMARY: In accordance with the through effects on annual rates of human and natural environment Marine Mammal Protection Act recruitment or survival.’’ associated with the Authorization (MMPA) regulations, we hereby give Except with respect to certain requiring evaluation in a supplemental notification that the National Marine activities not pertinent here, the MMPA EA and NMFS, therefore, reaffirms the Fisheries Service has issued an defines ‘‘harassment’’ as: Any act of 2010 FONSI. An electronic copy of the Incidental Harassment Authorization pursuit, torment, or annoyance which (i) EA and the FONSI for this activity is (IHA) to Point Blue Conservation has the potential to injure a marine available upon request (see ADDRESSES). Science (Point Blue), to take marine mammal or marine mammal stock in the Determinations mammals, by Level B harassment, wild [Level A harassment]; or (ii) has the potential to disturb a marine We have determined that the impact incidental to conducting seabird and pinniped research activities in central mammal or marine mammal stock in the of conducting the specific helicopter wild by causing disruption of behavioral operations and restoration activities California, January 2014 through January 2015. patterns, including, but not limited to, described in this notice and in the migration, breathing, nursing, breeding, DATES: Authorization request in the specific Effective January 31, 2014, feeding, or sheltering [Level B geographic region in the northeastern through January 30, 2015. harassment]. Pacific Ocean may result, at worst, in a ADDRESSES: The public may obtain an temporary modification in behavior electronic copy of the Point Blue’s Summary of Request (Level B harassment) of small numbers application, supporting documentation, We received an application on July of marine mammals. Further, this the authorization, and a list of the 17, 2013, from Point Blue requesting the

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taking by harassment of small numbers program of the region’s seabird Specified Geographic Region of marine mammals incidental to populations. Point Blue’s long-term Point Blue will conduct their research conducting seabird and pinniped pinniped research program monitors activities within the vicinity of research activities on Southeast Farallon pinniped colonies to understand pinniped haul out sites in the following Island, An˜ o Nuevo Island, Point Reyes elephant and harbor seal population locations: National Seashore, San Francisco Bay, dynamics and to contribute to the South Farallones Islands: The South conservation of both species. and the Russian River in central Farallon Islands consist of Southeast California. We determined the Dates and Duration Farallon Island located at 37°41′54.32″ application complete and adequate on ° ′ ″ The Authorization would be effective N; 123 0 8.33 W and West End Island. August 27, 2013. The South Farallon Islands have a land Point Blue, along with partners from January 31, 2014 through January 30, 2015. Following is a brief summary area of approximately 120 acres (0.49 Oikonos Ecosystem Knowledge, Point square kilometers (km)) and are part of Reyes National Seashore with the of the dates and duration of the activities. the Farallon National Wildlife Refuge. National Park Service, and the Gulf of The islands are located near the edge of the Farallones National Marine Seabird Research on Southeast Farallon Island: Daily observations of the continental shelf 28 miles (mi) (45.1 Sanctuary would conduct this research km) west of San Francisco, CA, and lie under cooperative agreements with the seabird colonies would occur at a maximum frequency of three 15-minute within the waters of the Gulf of the U.S. Fish and Wildlife Service in Farallones National Marine Sanctuary. consultation with the Gulf of the visits. Daily observations of breeding common murre (Uria aalge) colonies An˜ o Nuevo Island: An˜ o Nuevo Island Farallones National Marine Sanctuary. located at 37°6′29.25″ N; 122°20′12.20″ The proposed research activities would occur at a maximum frequency of W is one-quarter mile (402 meters (m)) would occur for one year, January 31, a single five-hour visit. These activities offshore of An˜ o Nuevo Point in San 2014, through January 30, 2015, and usually involve one or two observers Mateo County, CA. The island lies would involve annual monitoring and conducting daily censuses of seabirds or within the Monterey Bay National censusing of seabird colonies; seabird conducting mark/recapture studies of Marine Sanctuary and the An˜ o Nuevo nesting habitat observations; nesting breeding seabirds on the island. Field Station Resupply on Southeast State Marine Conservation Area. burrows restoration; breeding elephant Farallon Island: Resupply of the field Point Reyes National Seashore: Point seals observations; and the periodic station would occur once every two Reyes National Seashore is resupply of a field station. weeks at a maximum frequency of 26 approximately 40 miles (64.3 km) north These proposed activities would visits annually. Resupply activities of San Francisco Bay and also lies occur in the vicinity of pinniped haul involve personnel approaching either within the Gulf of the Farallones out sites and could likely result in the the North Landing or East Landing by National Marine Sanctuary. incidental take of marine mammals. We motorboat to offload supplies. San Francisco Bay: The main part of anticipate take, by Level B Harassment Pinniped Research in Central San Francisco Bay measures only, of individuals of either California California: Surveys of breeding northern approximately 3 to 12 miles (5 to 20 km) sea lions (Zalophus californianus), elephant seals on Southeast Farallon wide east-to-west and between 48 miles Pacific harbor seals (Phoca vitulina), and An˜ o Nuevo Islands, the coastline of (77 km) and 60 miles (97 km) north-to- northern elephant seals (Mirounga Point Reyes Peninsula, San Francisco south. angustirostris), or Steller sea lions Bay, and the Russian River, would occur Russian River: The Russian River (Eumetopias jubatus) to result from the in early December and late February, coastline stretches for approximately 55 specified activity. annually. At least three researchers miles just south of San Francisco. This is the organization’s fifth request would visit the sites at a maximum Starting at Lake Mendocino, the Russian for an Authorization. To date, we have frequency of five times per year. River flows south through valleys in issued an Incidental Harassment Seabird Research and Field Supply on Mendocino and Sonoma County, and Authorization (Authorization) to Point An˜ o Nuevo Island: Researchers would empties into the Pacific Ocean at Jenner, Blue (formerly known as PRBO monitor seabird burrow nesting habitat California. Conservation Science) for the conduct of quality, conduct habitat restoration, and similar activities from 2007 to 2013 (72 resupply the field station from April Detailed Description of Activities FR 71121, December 14, 2007; 73 FR through August at a maximum We outlined the purpose of Point 77011, December 18, 2008; 75 FR 8677, frequency of 20 visits annually. Blue’s activities in a previous notice for February 19, 2010; 77 FR 73989, Occasionally, researchers would also the proposed authorization (78 FR December 7, 2012). conduct intermittent visits to the island 66686, November 6, 2013). The Description of the Specified Activity throughout the year. These activities proposed activities have not changed involve two to three researchers between the proposed authorization Overview accessing the island by motorboat. notice and this final notice announcing Point Blue proposes to monitor and Seabird Research on Point Reyes the issuance of the Authorization. For a census seabird colonies; observe seabird National Seashore: The National Park more detailed description of the nesting habitat; restore nesting burrows; Service in collaboration with Point Blue authorized action, we refer the reader to observe breeding elephant and harbor monitors seabird breeding and roosting the notice for the proposed seals; and resupply a field station colonies; conducts habitat restoration; authorization (78 FR 66686, November annually in central California (i.e., removes non-native plants; monitors 6, 2013). Southeast Farallon Island, West End intertidal areas; and maintains coastal Island, An˜ o Nuevo Island, Point Reyes dune habitat. Seabird monitoring Comments and Responses National Seashore, San Francisco Bay, usually involves one or two observers We published a notice of receipt of and the Russian River in Sonoma conducting the survey by small boats Point Blue’s application and proposed County). along the shoreline. Researchers would Authorization in the Federal Register The purpose of the seabird research is visit the site at a maximum frequency of on November 5, 2013 (78 FR 66686). to continue a 30-year monitoring 20 times per year. During the 30-day comment period, we

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received one comment from the Marine do not consider it further in this notice and mitigation measures described later Mammal Commission (Commission) of issuance of an Authorization. in this document (see the ‘‘Proposed which recommended that we issue the Mitigation’’ and ‘‘Proposed Monitoring Potential Effects on Marine Mammals requested Authorization, provided that and Reporting’’ sections). Point Blue carries out the required Acoustic and visual stimuli generated Anticipated Effects on Habitat monitoring and mitigation measures as by: (1) Noise generated by motorboat described in the notice of the proposed approaches and departures; (2) noise We considered these impacts in detail authorization (78 FR 66686, November generated during restoration activities in the notice for the proposed 6, 2013) and the application. We have and loading operations while authorization (78 FR 66686, November included all measures proposed in the resupplying the field station; and (3) 6, 2013). Briefly, we do not anticipate notice of the proposed authorization (78 human presence during seabird and that the proposed research activities FR 66686, November 6, 2013) in the pinniped research activities, have the would result in any significant or long- Authorization. potential to cause California sea lions, term effects on the habitats used by the Pacific harbor seals, northern elephant marine mammals in the proposed area, Description of the Marine Mammals in seals, and Steller sea lions hauled out in including the food sources they use (i.e., the Area of the Proposed Specified areas within Southeast Farallon Island, fish and invertebrates). While we Activity West End Island, An˜ o Nuevo Island, anticipate that the specified activity The marine mammals most likely to Point Reyes National Seashore, San could potentially result in marine be harassed incidental to conducting Francisco Bay, and the Russian River to mammals avoiding certain areas due to seabird and pinniped research at the flush into the surrounding water or to temporary ensonification and human proposed research areas are primarily cause a short-term behavioral presence, this impact to habitat is California sea lions, northern elephant disturbance for marine mammals. temporary and reversible. We do not We expect that acoustic and visual seals, Pacific harbor seals, and to a consider behavioral modification to stimuli resulting from the proposed lesser extent the eastern distinct cause significant or long-term motorboat operations and human population segment (DPS) of the Steller consequences for individual marine presence has the potential to harass sea lion, which NMFS has removed mammals or their populations. marine mammals. We also expect that from the list of threatened species under these disturbances would be temporary Mitigation the U.S. Endangered Species Act of and result, at worst, in a temporary 1973 (ESA; 16 U.S.C. 1531 et seq.), In order to issue an incidental take modification in behavior and/or low- effective November 2013. The ESA does authorization under section 101(a)(5)(D) level physiological effects (Level B not categorize California sea lions, of the Marine Mammal Protection Act, harassment) of certain species of marine northern elephant seals, Pacific harbor we must prescribe, where applicable, mammals. the permissible methods of taking seals as threatened or endangered and We included a summary and pursuant to such activity, and other the MMPA categorizes these species as discussion of the ways that the types of means of effecting the least practicable not depleted. On the other hand, despite stressors associated with Point Blue’s impact on such species or stock and its the delisting of Steller sea lions as specified activities (i.e., visual and habitat, paying particular attention to endangered under the ESA, NMFS still acoustic disturbance) have the potential rookeries, mating grounds, and areas of categorizes the species as a strategic to impact marine mammals in a similar significance, and on the stock and depleted species under the previous notice for the proposed availability of such species or stock for MMPA. The agency will consider authorization (78 FR 66686, November taking for certain subsistence uses. designating the eastern stock of Steller 6, 2013). sea lions as non-strategic and not Vessel Strike: The potential for Point Blue has based the mitigation depleted under the MMPA following striking marine mammals is a concern measures which they will implement review by the Alaska Scientific Review with vessel traffic. However, it is highly during the proposed research, on the Group in 2014. unlikely that the use of small, slow- following: (1) Protocols used during We refer the public to Carretta et al., moving boats to access the research previous Point Blue seabird and (2013) for general information on these areas would result in injury, serious pinniped research activities as required species which we presented in the injury, or mortality to any marine by our previous authorizations and notice of the proposed authorization (78 mammal. Typically, the reasons for Incidental Take Statement for the FR 66686, November 6, 2013). The vessel strikes are fast transit speeds, lack Biological Opinion for these activities; publication is available at: http:// of maneuverability, or not seeing the (2) recommended best practices in www.nmfs.noaa.gov/pr/sars/pdf/ animal because the boat is so large. Richardson et al. (1995); and (3) the po2012.pdf. Point Blue’s researchers will access conditions of their current five-year areas at slow transit speeds in easily Scientific Research Permit (No. 17152– Other Marine Mammals in the Proposed 00). Action Area maneuverable boats negating any chance of an accidental strike. To reduce the potential for California (southern) sea otters Rookeries: No research activities disturbance from acoustic and visual (Enhydra lutris nereis), listed as would occur on pinniped rookeries and stimuli associated with the activities threatened under the ESA and breeding animals are concentrated in Point Blue and/or its designees has categorized as depleted under the areas where researchers would not visit. proposed to implement the following MMPA, usually range in coastal waters Therefore, we do not expect mother and mitigation measures for marine within 1.24 miles (2 km) of the pup separation or crushing of pups mammals: shoreline. Point Blue has not during flushing. (1) Abide by the conditions of NMFS encountered California sea otters during The potential effects to marine Scientific Research Permit Number the course of their seabird or pinniped mammals described in the notice for the 17152–00. research activities over the past five proposed authorization (78 FR 66686, (2) Postpone beach landings until years. This species is managed by the November 6, 2013) did not take into pinnipeds that may be present on the U.S. Fish and Wildlife Service and we consideration the proposed monitoring beach have slowly entered the water.

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(3) Select a pathway of approach to 2. A reduction in the numbers of mammal monitoring during the present research sites that minimizes the marine mammals (total number or project, in order to implement the number of marine mammals harassed. number at biologically important time mitigation measures that require real- (4) Avoid visits to sites used by or location) exposed to received levels time monitoring, and to satisfy the pinnipeds for pupping. of sound, or other activities expected to monitoring requirements of the (5) Monitor for offshore predators and result in the take of marine mammals Authorization. do not approach hauled out pinnipeds (this goal may contribute to 1, above, or The Point Blue researchers will if great white sharks (Carcharodon to reducing harassment takes only). monitor the area for pinnipeds during carcharias) or killer whales (Orcinas 3. A reduction in the number of times all research activities. Monitoring orca) are in the area. If Point Blue and/ (total number or number at biologically activities will consist of conducting and or its designees see predators in the important time or location) individuals recording observations on pinnipeds area, they must not disturb the animals would be exposed to received levels of within the vicinity of the proposed until the area is free of predators. sound, or other activities expected to research areas. The monitoring notes (6) Keep voices hushed and bodies result in the take of marine mammals would provide dates, location, species, low to the ground in the visual presence (this goal may contribute to 1, above, or the researcher’s activity, behavioral of pinnipeds. to reducing harassment takes only). state, numbers of animals that were alert (7) Conduct seabird observations at 4. A reduction in the intensity of or moved greater than one meter, and North Landing on Southeast Farallon exposures (either total number or numbers of pinnipeds that flushed into Island in an observation blind, shielded number at biologically important time the water. from the view of hauled out pinnipeds. or location) to received levels of sound Point Blue has complied with the (8) Crawl slowly to access seabird nest from motorboat approaches, or other monitoring requirements under the boxes on An˜ o Nuevo Island if pinnipeds activities expected to result in the take previous authorizations for the 2007 are within view. of marine mammals (this goal may through 2012 seasons. The results from (9) Coordinate research visits to contribute to a, above, or to reducing the previous Point Blue’s monitoring intertidal areas of Southeast Farallon severity of harassment takes only). reports support our findings that the 5. Avoidance or minimization of Island (to reduce potential take) and proposed mitigation measures, which adverse effects to marine mammal coordinate research goals for An˜ o Nuevo we also required under the 2007–2012 habitat, paying special attention to the Island to minimize the number of trips Authorizations provide the means of food base, activities that block or limit to the island. effecting the least practicable adverse passage to or from biologically (10) Coordinate monitoring schedules impact on the species or stock. Point important areas, permanent destruction on An˜ o Nuevo Island, so that areas near Blue will submit a monitoring report on of habitat, or temporary destruction/ any pinnipeds would be accessed only the December 6, 2012 through December disturbance of habitat during a once per visit. 5, 2013 research period by February, biologically important time. 2014. Upon receipt and review, we will (11) Have the lead biologist serve as 6. For monitoring directly related to post this annual report on our Web site an observer to evaluate incidental take. mitigation—an increase in the at http://www.nmfs.noaa.gov/pr/ We have carefully evaluated the probability of detecting marine permits/incidental.htm#applications. applicant’s proposed mitigation mammals, thus allowing for more measures and have considered a range effective implementation of the Reporting of other measures in the context of mitigation. ensuring that we have prescribed the Based on our evaluation of Point Point Blue will submit a final means of effecting the least practicable Blue’s proposed measures, we have monitoring report to us no later than 90 adverse impact on the affected marine determined that the mitigation measures days after the expiration of the mammal species and stocks and their provide the means of effecting the least Incidental Harassment Authorization, if habitat. Our evaluation of potential practicable impacts on marine mammals we issue it. The final report will measures included consideration of the species or stocks and their habitat, describe the operations conducted and following factors in relation to one paying particular attention to rookeries, sightings of marine mammals near the another: mating grounds, and areas of similar proposed project. The report will (1) The manner in which, and the significance. provide full documentation of methods, degree to which, we expect that the results, and interpretation pertaining to successful implementation of the Monitoring all monitoring. The final report will measure would minimize adverse In order to issue an incidental take provide: impacts to marine mammals; authorization for an activity, section (i) A summary and table of the dates, (2) The proven or likely efficacy of the 101(a)(5)(D) of the MMPA states that we times, and weather during all seabird specific measure to minimize adverse must set forth ‘‘requirements pertaining and pinniped research activities. impacts as planned; and to the monitoring and reporting of such (ii) Species, number, location, and (3) The practicability of the measure taking.’’ The Act’s implementing behavior of any marine mammals for applicant implementation. regulations at 50 CFR 216.104(a)(13) observed throughout all monitoring Any mitigation measure(s) prescribed indicate that requests for an activities. by us should be able to accomplish, authorization must include the (iii) An estimate of the number (by have a reasonable likelihood of suggested means of accomplishing the species) of marine mammals that are accomplishing (based on current necessary monitoring and reporting that known to have been exposed to acoustic science), or contribute to the will result in increased knowledge of or visual stimuli associated with the accomplishment of one or more of the the species and our expectations of the seabird and pinniped research activities. general goals listed here: level of taking or impacts on (iv) A description of the 1. Avoidance or minimization of populations of marine mammals present implementation and effectiveness of the injury or death of marine mammals in the action area. monitoring and mitigation measures of wherever possible (goals 2, 3, and 4 may As part of its 2013 application, Point the Authorization and full contribute to this goal). Blue proposes to sponsor marine documentation of methods, results, and

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interpretation pertaining to all circumstances of the incident. We will The authorized take differs from Point monitoring. work with Point Blue to determine Blue’s original request for California sea In the unanticipated event that the whether modifications in the activities lions (5,104), northern elephant seals specified activity clearly causes the take are appropriate. (190), and Steller sea lions (20) because of a marine mammal in a manner In the event that Point Blue discovers we have determined that they prohibited by the authorization, such as an injured or dead marine mammal, and underestimated some of their take an injury (Level A harassment), serious the lead visual observer determines that estimates. We base these new estimates injury, or mortality (e.g., vessel-strike, the injury or death is not associated for California sea lions, northern stampede, etc.), Point Blue shall with or related to the authorized elephant seals, and Steller sea lions on immediately cease the specified activities (e.g., previously wounded historical data from previous monitoring activities and immediately report the animal, carcass with moderate to reports and anecdotal data for the same incident to the Incidental Take Program advanced decomposition, or scavenger activities conducted in the proposed Supervisor, Permits and Conservation damage), Point Blue will report the research area. In brief, for each species, Division, Office of Protected Resources, incident to the Incidental Take Program we created a statistical model to derive NMFS, at 301–427–8401 and/or by Supervisor, Permits and Conservation an estimate of the average annual email to [email protected] and Division, Office of Protected Resources, increase of reported take based on a best [email protected] and the Assistant at 301–427–8401 and/or by email to fit regression analysis (i.e., linear or West Coast Regional Stranding [email protected] and ITP.Cody@ polynomial regression) of reported take Coordinator at (562) 980–3264 noaa.gov and the Assistant West Coast from 2007 to 2012. Next, we added the ([email protected]). The report Regional Stranding Coordinator at (562) predicted annual increase in take to a must include the following information: 980–3264 ([email protected]), baseline of take reported for 2012 season • Time, date, and location (latitude/ within 24 hours of the discovery. Point to project the estimated take for each longitude) of the incident; Blue staff will provide photographs or species for the 2013 Authorization. We • Description and location of the video footage (if available) or other carried through the same predicted incident (including water depth, if documentation of the stranded animal annual increase in take for future applicable); sighting to us. Point Blue can continue Authorizations (2014–2017) to obtain a • Environmental conditions (e.g., their research activities. mean projected take for each species. wind speed and direction, Beaufort sea Estimated Take by Incidental Last, we analyzed the reported take for state, cloud cover, and visibility); Harassment each activity by calculating the upper • Description of all marine mammal bound of the 99 percent confidence observations in the 24 hours preceding Except with respect to certain interval of the mean reported take the incident; activities not pertinent here, the MMPA (2007–2012) and mean projected take • Species identification or defines ‘‘harassment’’ as: any act of (2014–2017) for each species. Our use of description of the animal(s) involved; pursuit, torment, or annoyance which (i) the upper confidence interval represents • Fate of the animal(s); and has the potential to injure a marine the best available information that • Photographs or video footage of the mammal or marine mammal stock in the supports our precautionary deliberation animal(s) (if equipment is available). wild [Level A harassment]; or (ii) has of how much take could occur annually. Point Blue shall not resume its the potential to disturb a marine There is no evidence that Point Blue’s activities until we are able to review the mammal or marine mammal stock in the planned activities could result in injury, circumstances of the prohibited take. wild by causing disruption of behavioral serious injury or mortality within the We will work with Point Blue to patterns, including, but not limited to, action area. Moreover, the required determine what is necessary to migration, breathing, nursing, breeding, mitigation and monitoring measures minimize the likelihood of further feeding, or sheltering [Level B will minimize further any potential risk prohibited take and ensure Marine harassment]. for injury, serious injury, or mortality. Mammal Protection Act compliance. We propose to authorize take by Level Thus, we do not propose to authorize Point Blue may not resume their B harassment only for the proposed any injury, serious injury or mortality. activities until notified by us via letter, pinniped and seabird research activities We expect all potential takes to fall email, or telephone. on Southeast Farallon Island, An˜ o under the category of Level B In the event that Point Blue discovers Nuevo Island, Point Reyes National harassment only. an injured or dead marine mammal, and Seashore, San Francisco Bay, and the the lead visual observer determines that Russian River in central California. Encouraging and Coordinating the cause of the injury or death is Acoustic (i.e., increased sound) and Research unknown and the death is relatively visual stimuli generated during these Point Blue will continue to coordinate recent (i.e., in less than a moderate state proposed activities have the potential to monitoring of pinnipeds during the of decomposition as we describe in the cause marine mammals in the harbor research activities occurring on next paragraph), Point Blue will area to experience temporary, short-term Southeast Farallon Island, An˜ o Nuevo immediately report the incident to the changes in behavior. Island, Point Reyes National Seashore, Incidental Take Program Supervisor, Based on Point Blue’s previous San Francisco Bay, and the Russian Permits and Conservation Division, research experiences, with the same River in central California. Point Blue Office of Protected Resources, at 301– activities conducted in the proposed conducts bone fide research on marine 427–8401 and/or by email to research area, and on marine mammal mammals, the results of which may [email protected] and ITP.Cody@ research activities in these areas, we contribute to the basic knowledge of noaa.gov and the Assistant West Coast estimate that approximately 10,092 marine mammal biology or ecology, or Regional Stranding Coordinator at (562) California sea lions, 526 harbor seals, are likely to identify, evaluate, or 980–3264 ([email protected]). 261 northern elephant seals, and 185 resolve conservation problems. The report must include the same Steller sea lions could be affected by information identified in the paragraph Level B behavioral harassment over the Negligible Impact above this section. Activities may course of the effective period of the Negligible impact’ is ‘‘. . . an impact continue while we review the proposed Authorization. resulting from the specified activity that

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cannot be reasonably expected to, and is various sites and did not permanently or stocks; and that impacts to affected not reasonably likely to, adversely affect abandon haul-out sites after Point Blue species or stocks of marine mammals the species or stock through effects on conducted their pinniped and research would be mitigated to the lowest level annual rates of recruitment or survival.’’ activities. practicable. The lack of likely adverse effects on (3) There is no potential for large- annual rates of recruitment or survival scale movements leading to injury, Impact on Availability of Affected (i.e., population level effects) forms the serious injury, or mortality because the Species or Stock for Taking for basis of a negligible impact finding. researchers must delay ingress into the Subsistence Uses An estimate of the number of Level B landing areas until after the pinnipeds harassment takes, alone, is not enough present have slowly entered the water. Section 101(a)(5)(D) of the MMPA information on which to base an impact (4) The limited access of Point Blue’s also requires us to determine that the determination. In addition to researchers to Southeast Farallon Island, taking will not have an unmitigable considering estimates of the number of An˜ o Nuevo Island, and Point Reyes adverse effect on the availability of marine mammals that might be ‘‘taken’’ National Seashore during the pupping marine mammal species or stocks for through behavioral harassment, we must season. subsistence use. There are no relevant consider other factors, such as the likely We do not anticipate that any injuries, subsistence uses of marine mammals in nature of any responses (their intensity, serious injuries, or mortalities would the study area (northeastern Pacific duration, etc.), the context of any occur as a result of Point Blue’s Ocean) that implicate section responses (critical reproductive time or proposed activities, and we do not 101(a)(5)(D) of the MMPA. location, migration, etc.), as well as the propose to authorize injury, serious National Environmental Policy Act number and nature of any estimated injury or mortality. These species may (NEPA) Level A harassment takes, and the exhibit behavioral modifications, including temporarily vacating the area number of estimated mortalities. To meet our NEPA requirements for In making a negligible impact during the proposed seabird and pinniped research activities to avoid the the issuance of an Authorization to determination, we consider: Point Blue, we prepared an (1) The number of anticipated resultant acoustic and visual Environmental Assessment (EA) titled injuries, serious injuries, or mortalities; disturbances. Further, these proposed (2) The number, nature, and intensity, activities would not take place in areas ‘‘Issuance of an Incidental Harassment and duration of Level B harassment; of significance for marine mammal Authorization to Point Blue (3) The context in which the takes feeding, resting, breeding, or calving Conservation Science and Partners to occur (e.g., impacts to areas of and would not adversely impact marine Take Marine Mammals by Harassment significance, impacts to local mammal habitat. Due to the nature, Incidental to Seabird and Pinniped populations, and cumulative impacts degree, and context of the behavioral Research Conducted in Central when taking into account successive/ harassment anticipated, the activities California.’’ We provided relevant contemporaneous actions when added are not expected to impact annual rates environmental information to the public to baseline data); of recruitment or survival. through a previous notice for the (4) The status of stock or species of Small Numbers proposed authorization (78 FR 66686, marine mammals (i.e., depleted, not November 6, 2013) and considered As mentioned previously, we estimate depleted, decreasing, increasing, stable, public comments received in response that the research activities could impact relative to the size of the prior to finalizing our EA and deciding population); potentially affect, by Level B harassment only, four species of marine mammals whether or not to issue a Finding of No (5) Impacts on habitat affecting rates Significant Impact (FONSI). We of recruitment/survival; and under our jurisdiction. For each species, conclude that issuance of an Incidental (6) The effectiveness of monitoring these estimates are small (each, less and mitigation measures. than or equal to three percent) relative Harassment Authorization would not For reasons stated previously in this to the population size. These estimates significantly affect the quality of the document and based on the following represent approximately 3.4 percent of human environment and have issued a factors, Point Blue’s specified activities the U.S. stock of California sea lions, FONSI. Our EA and FONSI for this are not likely to cause long-term 0.21 percent of the California breeding activity are available upon request (see behavioral disturbance, abandonment of stock of northern elephant seals, 1.74 ADDRESSES). percent of the California stock of Pacific the haulout area, injury, serious injury, Authorization or mortality because: harbor seals, and 0.32 percent of the (1) The effects of the pinniped and eastern distinct population segment of As a result of these determinations, seabird research activities would be Steller sea lions. Table 2 outlines the we have issued an Authorization to limited to short-term startle responses number of Level B harassment takes that Point Blue for the take of marine and localized behavioral changes due to we propose to authorize annually, the mammals incidental to proposed the short and sporadic duration of the regional population estimates for marine seabird and pinniped research activities, research activities. Minor and brief mammals in the action area that could provided they incorporate the responses, such as short-duration startle occur as a result of Point Blue’s research previously mentioned mitigation, or alert reactions, are not likely to activities annually. monitoring, and reporting requirements. constitute disruption of behavioral Based on the analysis contained patterns, such as migration, nursing, herein of the likely effects of the Dated: January 29, 2014. breeding, feeding, or sheltering. specified activity on marine mammals Donna S. Wieting, (2) The availability of alternate areas and their habitat, and taking into Director, Office of Protected Resources, for pinnipeds to avoid the resultant consideration the implementation of the National Marine Fisheries Service. acoustic and visual disturbances from mitigation and monitoring measures, we [FR Doc. 2014–02163 Filed 1–31–14; 8:45 am] the research operations. Results from have determined that the total taking previous monitoring reports also show from the proposed activities will have a BILLING CODE 3510–22–P that the pinnipeds returned to the negligible impact on the affected species

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COMMODITY FUTURES TRADING MATTERS TO BE CONSIDERED: business days between the hours of 10 COMMISSION Surveillance, Enforcement Matters, and a.m. and 5 p.m. Eastern Time.. You can Examinations. In the event that the make an appointment to inspect Sunshine Act Meetings times, dates, or locations of this or any comments by telephoning (202) 435– future meetings change, an 7220. All comments, including TIME AND DATE: 10:00 a.m., Friday, announcement of the change, along with attachments and other supporting February 21, 2014. the new time and place of the meeting materials, will become part of the public PLACE: 1155 21st St. NW., Washington, will be posted on the Commission’s record and subject to public disclosure. DC, 9th Floor Commission Conference Web site at http://www.cftc.gov. You should submit only information Room. CONTACT PERSON FOR MORE INFORMATION: that you wish to make available STATUS: Closed. Melissa D. Jurgens, 202–418–5516. publicly. MATTERS TO BE CONSIDERED: Surveillance, Enforcement Matters, and Natise Allen, FOR FURTHER INFORMATION CONTACT: Examinations. In the event that the Executive Assistant. Claire Stapleton, Chief Privacy Officer, times, dates, or locations of this or any [FR Doc. 2014–02259 Filed 1–30–14; 11:15 am] Consumer Financial Protection Bureau, future meetings change, an BILLING CODE 6351–01–P 1700 G Street NW., Washington, DC announcement of the change, along with 20552, (202) 435–7220. the new time and place of the meeting SUPPLEMENTARY INFORMATION: The Dodd- will be posted on the Commission’s BUREAU OF CONSUMER FINANCIAL Frank Wall Street Reform and Consumer Web site at http://www.cftc.gov. PROTECTION Protection Act (the ‘‘Act’’), Public Law CONTACT PERSON FOR MORE INFORMATION: Privacy Act of 1974, as Amended 111–203, Title X, established the CFPB Melissa D. Jurgens, 202–418–5516. to administer and enforce federal Natise Allen, AGENCY: Bureau of Consumer Financial consumer financial law. The system of Protection. records described in this notice, Executive Assistant. ACTION: Notice of Proposed Privacy Act CFPB.004—CFPB Enforcement [FR Doc. 2014–02260 Filed 1–30–14; 11:15 am] System of Records. Database, enables the CFPB to carry out BILLING CODE 6351–01–P its responsibilities with respect to the SUMMARY: In accordance with the enforcement of federal consumer Privacy Act of 1974, as amended, the financial law. COMMODITY FUTURES TRADING Bureau of Consumer Financial COMMISSION Protection, hereinto referred to as the The report of the system of records Consumer Financial Protection Bureau has been submitted to the Committee on Sunshine Act Meetings (‘‘CFPB’’ or the ‘‘Bureau’’), gives notice Oversight and Government Reform of the House of Representatives, the TIME AND DATE: 10:00 a.m., Friday, of a revised Privacy Act System of Records (‘‘SORN’’). In revising this Committee on Homeland Security and February 28, 2014. Governmental Affairs of the Senate, and PLACE: 1155 21st St. NW., Washington, SORN, the CFPB modifies the system location, system manager(s) and the Office of Management and Budget, DC, 9th Floor Commission Conference pursuant to Appendix I to OMB Circular Room. address; modifies the authorities section to clarify that the authority for operating A–130, ‘‘Federal Agency STATUS: Closed. the system stems in part from Responsibilities for Maintaining MATTERS TO BE CONSIDERED: Records About Individuals,’’ dated enforcement powers of the CFPB; 1 Surveillance, Enforcement Matters, and modifies the Records Sources Categories November 30, 2000, and the Privacy Examinations. In the event that the to clarify the record sources; and Act, 5 U.S.C. 552a(r). times, dates, or locations of this or any consolidates two routine uses The system of records entitled future meetings change, an (previously routine uses 6 and 7) which ‘‘CFPB.004—CFPB Enforcement announcement of the change, along with include the disclosure of personally Database’’ is published in its entirety the new time and place of the meeting identifiable information (‘‘PII’’) from the below. will be posted on the Commission’s system to the U.S. Department of Justice Dated: January 27, 2014. Web site at http://www.cftc.gov. (‘‘DOJ’’) for its use in providing legal Claire Stapleton, CONTACT PERSON FOR MORE INFORMATION: advice to the CFPB or in representing Melissa D. Jurgens, 202–418–5516. the CFPB in a legal proceeding. Chief Privacy Officer, Bureau of Consumer Financial Protection. Natise Allen, DATES: Comments must be received no Executive Assistant. later than March 5, 2014. The new CFPB.004 [FR Doc. 2014–02261 Filed 1–30–14; 11:15 am] system of records will be effective March 17, 2014, unless the comments SYSTEM NAME: BILLING CODE 6351–01–P received result in a contrary CFPB Enforcement Database determination.

COMMODITY FUTURES TRADING ADDRESSES: You may submit comments SYSTEM LOCATION: COMMISSION by any of the following methods: • Electronic: [email protected]. Consumer Financial Protection Sunshine Act Meetings • Mail/Hand Delivery/Courier: Claire Bureau, 1700 G Street NW., Washington, Stapleton, Chief Privacy Officer, DC 20552. TIME AND DATE: 10:00 a.m., Friday, Consumer Financial Protection Bureau, February 14, 2014. 1700 G Street NW., Washington, DC 1 Although the CFPB, under 12 U.S.C. PLACE: 1155 21st St. NW., Washington, 20552. 5497(a)(4)(E), is not legally required to follow OMB- DC, 9th Floor Commission Conference issued guidance, it voluntarily follows OMB Comments will be available for public privacy-related guidance as a best practice and to Room. inspection and copying at 1700 G Street facilitate cooperation and collaboration with other STATUS: Closed. NW., Washington, DC 20552 on official agencies.

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CATEGORIES OF INDIVIDUALS COVERED BY THE Identifiable information about has confirmed that the security or SYSTEM: individuals such as name, address, confidentiality of information in the Individuals covered by this system email address, phone number, Social system of records has been include: Security number, employment status, compromised; (b) the CFPB has (1) Individuals who are current or age, date of birth, financial information, determined that as a result of the former directors, officers, employees, credit information, and personal history. suspected or confirmed compromise shareholders, agents, and independent Records in this system are collected and there is a risk of harm to economic or contractors of covered persons or generated during the investigation of property interests, identity theft or service providers, who are or have been potential violations and enforcement of fraud, or harm to the security or the subjects of or otherwise associated laws and regulations under the integrity of this system or other systems with an investigation or enforcement jurisdiction of the CFPB and may or programs (whether maintained by the action by the CFPB, or have been named include: (1) Records provided to the CFPB or another agency or entity) that in connection with suspicious activity CFPB about potential or pending rely upon the compromised reports or administrative enforcement investigations, administrative information; and (c) the disclosure made orders or agreement. Covered persons proceedings, and civil litigation; (2) to such agencies, entities, and persons is and service providers include banks, evidentiary materials gathered or reasonably necessary to assist in savings associations, credit unions, prepared by the CFPB or obtained for connection with the CFPB’s efforts to thrifts, non-depository institutions, or use in investigations, proceedings, or respond to the suspected or confirmed other persons, offering, providing, or litigation, and work product derived compromise and prevent, minimize, or assisting with the provision of consumer from or related thereto; (3) staff working remedy such harm; financial products or services. papers, memoranda, analyses, (2) Another federal or state agency to: (2) Current, former, and prospective databases, and other records and work (a) Permit a decision as to access, consumers who are or have been product relating to possible or actual amendment or correction of records to customers or prospective customers of, investigations, proceedings, or be made in consultation with or by that solicited by, or serviced by covered litigation; (4) databases, agency; or (b) verify the identity of an persons or service providers if such correspondence, and reports tracking individual or the accuracy of individuals have provided information, the initiation, status, and closing of information submitted by an individual including complaints about covered investigations, proceedings, and who has requested access to, or persons or service providers, or are or litigation; (5) correspondence and amendment or correction of records; have been witnesses in or otherwise materials used by the CFPB to refer (3) To the Office of the President in associated with an enforcement action criminal and other matters to the response to an inquiry from that office appropriate agency or authority, and by the CFPB. made at the request of the subject of a records reflecting the status of any (3) Applicants, current and former record or a third party on that person’s outstanding referrals; (6) directors, officers, employees, behalf; correspondence and materials shared shareholders, agents, and independent (4) Congressional offices in response between the CFPB and other federal and to an inquiry made at the request of the contractors of persons and entities that state agencies; (7) consumer complaints have business relationships with individual to whom the record pertains; made or referred to the CFPB. (5) Contractors, agents, or other covered persons or service providers authorized individuals performing work who are or have been the subject of an AUTHORITY FOR MAINTENANCE OF THE SYSTEM: on a contract, service, cooperative enforcement action by the CFPB. Pub. L. 111–203, Title X, Sections agreement, job or other activity on (4) Current, former, and prospective 1011 and 1012, and Subtitle E, Section behalf of the CFPB or Federal customers of persons and entities that 1051 et seq., codified at 12 U.S.C. 5491, Government and who have a need to have business relationships with 5492, and 5561 et seq. access information in the performance covered persons or service providers PURPOSE(S): of their duties or activities; that are or have been the subject of an The information in the system is (6) The DOJ for its use in providing enforcement action by the CFPB, and legal advice to the CFPB or in the customers are complainants against being collected to enable the CFPB to carry out its responsibilities with representing the CFPB in a proceeding covered persons or service providers, or before a court, adjudicative body, or witnesses in or otherwise associated respect to enforcement of Title X of the Dodd-Frank Wall Street Reform and other administrative body, where the with an enforcement action. use of such information by the DOJ is (5) Other individuals who have Consumer Protection Act and other federal consumer financial law, deemed by the CFPB to be relevant and inquired about or may have information necessary to the advice or proceeding, relevant to an investigation or including: (1) The investigation of potential violations of federal consumer and such proceeding names as a party proceeding concerning a possible in interest: violation of federal consumer financial financial law; (2) the pursuit of administrative or civil enforcement (a) The CFPB; law. Information collected regarding (b) Any employee of the CFPB in his consumer financial products and actions; and (3) the referral of matters, as appropriate, to the Department of or her official capacity; services is subject to the Privacy Act (c) Any employee of the CFPB in his Justice or other federal or state agencies. only to the extent that it concerns or her individual capacity where DOJ individuals; information pertaining to ROUTINE USES OF RECORDS MAINTAINED IN THE has agreed to represent the employee; or corporations and other business entities SYSTEM, INCLUDING CATEGORIES OF USERS AND (d) The United States, where the and aggregate, non-identifiable THE PURPOSES OF SUCH USES: CFPB determines that litigation is likely information is not subject to the Privacy These records may be disclosed, to affect the CFPB or any of its Act. consistent with the CFPB Disclosure of components; Records and Information Rules, (7) A grand jury pursuant either to a CATEGORIES OF RECORDS IN THE SYSTEM: promulgated at 12 CFR 1070 et seq., to: federal or state grand jury subpoena, or Information contained in this system (1) Appropriate agencies, entities, and to a prosecution request that such includes: persons when: (a) The CFPB suspects or record be released for the purpose of its

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introduction to a grand jury, where the RETENTION AND DISPOSAL: purposes and are exempt from subpoena or request has been The CFPB will manage all computer disclosure under CFPB’s Privacy Act specifically approved by a court. In and paper files in the system as regulations and 5 U.S.C. 552a(k)(2). those cases where the Federal permanent records until the disposition Federal criminal law enforcement Government is not a party to the schedule for these records is approved investigatory reports maintained as part proceeding, records may be disclosed if by the National Archives and Records of this system may be the subject of a subpoena has been signed by a judge; Administration, at which time, the exemptions imposed by the originating (8) A court, magistrate, or CFPB will dispose of such files in agency pursuant to 5 U.S.C. 552a(j)(2). administrative tribunal in the course of accordance with the schedule. [FR Doc. 2014–02117 Filed 1–31–14; 8:45 am] an administrative proceeding or judicial SYSTEM MANAGER(S) AND ADDRESS: BILLING CODE 4810–AM–P proceeding, including disclosures to opposing counsel or witnesses Consumer Financial Protection (including expert witnesses) in the Bureau, Assistant Director of BUREAU OF CONSUMER FINANCIAL course of discovery or other pre-hearing Enforcement, 1700 G Street NW., PROTECTION exchanges of information, litigation, or Washington, DC 20552. settlement negotiations, where relevant NOTIFICATION PROCEDURE: Privacy Act of 1974, as Amended or potentially relevant to a proceeding, Individuals seeking notification and AGENCY: Bureau of Consumer Financial or in connection with criminal law access to any record contained in this Protection. proceedings; system of records, or seeking to contest ACTION: Notice of a Revised Privacy Act (9) Appropriate agencies, entities, and its content, may inquire in writing in System of Records. persons, including but not limited to accordance with instructions appearing potential expert witnesses or witnesses in the CFPB’s Disclosure of Records and SUMMARY: In accordance with the in the course of investigations, to the Information Rules, promulgated at 12 Privacy Act of 1974, as amended, the extent necessary to secure information CFR 1070 et seq. Address such requests Bureau of Consumer Financial relevant to the investigation; to: Chief Privacy Officer, Bureau of Protection, hereinto referred to as the (10) Appropriate federal, state, local, Consumer Financial Protection, 1700 G Consumer Financial Protection Bureau foreign, tribal, or self-regulatory Street NW., Washington, DC 20552. (CFPB), gives notice of the organizations or agencies responsible for establishment of a Privacy Act System RECORD ACCESS PROCEDURES: investigating, prosecuting, enforcing, of Records. implementing, issuing, or carrying out a See ‘‘Notification Procedures’’ above. DATES: Comments must be received no statute, rule, regulation, order, policy, or CONTESTING RECORD PROCEDURES: later than March 5, 2014. The new license if the information may be See ‘‘Notification Procedures’’ above. system of records will be effective relevant to a potential violation of civil March 17, 2014, unless the comments or criminal law, rule, regulation, order, RECORD SOURCE CATEGORIES: received result in a contrary policy or license; and Information in this system is obtained determination. (11) An entity or person that is the from covered persons or service ADDRESSES: You may submit comments subject of supervision or enforcement providers, including banks, savings by any of the following methods: activities including examinations, associations, credit unions, thrifts, or • Electronic: [email protected] investigations, administrative non-depository institutions or other • Mail/Hand Delivery/Courier: Claire proceedings, and litigation, and the persons offering, providing, or assisting Stapleton, Chief Privacy Officer, attorney or non-attorney representative with the provision of consumer Consumer Financial Protection Bureau, for that entity or person. financial products or services; 1700 G Street NW., Washington, DC individuals who are current or former 20552. POLICIES AND PRACTICES FOR STORING, directors, officers, employees, Comments will be available for public RETRIEVING, ACCESSING, RETAINING, AND shareholders, agents, and independent inspection and copying at 1700 G Street DISPOSING OF RECORDS IN THE SYSTEM: contractors of covered persons or NW., Washington, DC 20552 on official STORAGE: service providers; current, former, and business days between the hours of 10 prospective consumers who are or have Paper and electronic records. a.m. and 5 p.m. Eastern Time. You can been customers or prospective make an appointment to inspect RETRIEVABILITY: customers of, solicited by, or serviced comments by telephoning (202) 435– by covered persons or service providers; 7220. All comments, including Records are retrievable by a variety of applicants, current and former directors, fields including, without limitation, the attachments and other supporting officers, employees, shareholders, materials, will become part of the public individual’s name, address, account agents, and independent contractors of number, Social Security number, record and subject to public disclosure. persons and entities that have business You should submit only information transaction number, phone number, relationships with covered persons or date of birth, or by some combination that you wish to make available service providers; current, former, and publicly. thereof. prospective customers of persons and FOR FURTHER INFORMATION CONTACT: SAFEGUARDS: entities that have business relationships with covered persons or service Claire Stapleton, Chief Privacy Officer, Access to electronic records is providers; state and Federal agencies Consumer Financial Protection Bureau, restricted to authorized personnel who and others with information relevant to 1700 G Street NW., Washington, DC have been issued non-transferrable the enforcement of federal consumer 20552, (202) 435–7220. access codes and passwords. Other financial laws. SUPPLEMENTARY INFORMATION: As part of records are maintained in locked file a biennial review of this System of cabinets or rooms with access limited to EXEMPTIONS CLAIMED FOR THE SYSTEM: Records, the CFPB revises its Privacy those personnel whose official duties Portions of the records in this system Act System of Records Notice (SORN) require access. are compiled for law enforcement ‘‘CFPB.010—Ombudsman System.’’ In

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revising this SORN, the CFPB modifies SYSTEM LOCATION: fraud, or harm to the security or the retention and disposal of records in CFPB Ombudsman’s Office, integrity of this system or other systems the system to reflect the Ombudsman’s Consumer Financial Protection Bureau, or programs (whether maintained by the official Records Schedule on file with 1700 G Street NW., Washington DC CFPB or another agency or entity) that the National Archives and Records 20552. rely upon the compromised Administration; the categories of information; and (c) the disclosure made records in the system; and the record CATEGORIES OF INDIVIDUALS COVERED BY THE to such agencies, entities, and persons is SYSTEM: source categories for the system. reasonably necessary to assist in Additionally, the CFPB makes several Individuals, which may include, connection with the CFPB’s efforts to non-substantive changes to the system without limitation: (1) Current or former respond to the suspected or confirmed location and address; the system officers, employees, shareholders, compromise and prevent, minimize, or manager and address; the authority agents, and independent contractors of remedy such harm; section; the routine use section; and the covered persons and service providers (2) Another federal or state agency to: notification procedure section. as defined by the Act; (2) those who (a) Permit a decision as to access, Section 1013(a)(5) of the Dodd-Frank submit inquiries to the CFPB amendment or correction of records to Wall Street Reform and Consumer Ombudsman’s Office and their be made in consultation with or by that Protection Act Public Law 111–203, representatives; and (3) employees of agency; or (b) verify the identity of an Title X, established an Ombudsman’s the CFPB assigned to review and/or individual or the accuracy of Office to liaise between the CFPB and respond to any inquiries, as requested information submitted by an individual ‘‘any affected person with respect to any by the Ombudsman’s Office. who has requested access to or problem that such party may have in CATEGORIES OF RECORDS IN THE SYSTEM: amendment or correction of records; (3) To the Office of the President in dealing with the Bureau, resulting from Records maintained in the system response to an inquiry from that office the regulatory activities of the Bureau.’’ may contain, without limitation: (1) made at the request of the subject of a The Ombudsman’s Office is an Correspondence (including letters, record or a third party on that person’s independent, impartial, and memoranda, faxes, telegrams, and behalf; confidential resource that will advocate emails) received and sent; (2) for a fair process to resolve issues (4) Congressional offices in response identifying information regarding the to an inquiry made at the request of the between the CFPB and an individual or individual who submitted the inquiry, a financial product or service provider. individual to whom the record pertains; such as the individual’s name, phone (5) Contractors, agents, or other Records in this system allow the number, address, email address, and Ombudsman’s Office to track inquiries authorized individuals performing work any other disclosed identifiable on a contract, service, cooperative submitted to the Ombudsman while information; (3) information about the they are being addressed. The CFPB agreement, job or other activity on CFPB employee who is responsible for behalf of the CFPB Ombudsman’s Office Ombudsman’s Office will maintain the addressing the inquiry; (4) information records covered by this notice. or Federal Government and who have a regarding the status of the inquiry or need to access information in the The report of the revised system of otherwise related to the inquiry; and (5) performance of their duties or activities; records has been submitted to the relevant dates. (6) The U.S. Department of Justice Committee on Oversight and AUTHORITY FOR MAINTENANCE OF THE SYSTEM: (‘‘DOJ’’) for its use in providing legal Government Reform of the House of advice to the CFPB or in representing Public Law 111–203, Title X, Section Representatives, the Committee on the CFPB in a proceeding before a court, 1013, codified at 12 U.S.C. 5493. Homeland Security and Governmental adjudicative body, or other Affairs of the Senate, and the Office of PURPOSE: administrative body, where the use of Management and Budget, pursuant to The purpose of the information such information by the DOJ is deemed Appendix I to OMB Circular A–130, by the CFPB to be relevant and ‘‘Federal Agency Responsibilities for system is to enable the CFPB Ombudsman to efficiently and securely necessary to the advice or proceeding, Maintaining Records About and in the case of a proceeding, such Individuals,’’ dated November 30, process information while providing assistance to individuals, financial proceeding names as a party in interest: 2000,1 and the Privacy Act, 5 U.S.C. product or service providers, or their (a) The CFPB; 552a(r). representatives in resolving problems (b) Any employee of the CFPB in his The revised system of records entitled with the CFPB. or her official capacity; ‘‘CFPB.010—Ombudsman System’’ is (c) Any employee of the CFPB in his published in its entirety below. ROUTINE USES OF RECORDS MAINTAINED IN THE or her individual capacity where DOJ or SYSTEM, INCLUDING CATEGORIES OF USERS AND Dated: January 27, 2014. the CFPB has agreed to represent the THE PURPOSES OF SUCH USES: Claire Stapleton, employee; or These records may be disclosed, (d) The United States, where the Chief Privacy Officer, Bureau of Consumer consistent with the CFPB Disclosure of CFPB determines that litigation is likely Financial Protection. Records and Information Rules, to affect the CFPB or any of its CFPB.010 promulgated at 12 CFR 1070 et seq., to: components; and (1) Appropriate agencies, entities, and (7) Appropriate federal, state, local, SYSTEM NAME: persons when (a) the CFPB suspects or foreign, tribal, or self-regulatory Ombudsman System. has confirmed that the security or organizations or agencies responsible for confidentiality of information in the investigating, prosecuting, enforcing, 1 Although pursuant to section 1017(a)(4)(E) of system of records has been implementing, issuing, or carrying out a the Consumer Financial Protection Act, Public Law compromised; (b) the CFPB has statute, rule, regulation, order, policy, or 111–203, the CFPB is not required to comply with determined that as a result of the license if the information may be OMB-issued guidance, it voluntarily follows OMB privacy-related guidance as a best practice and to suspected or confirmed compromise relevant to a potential violation of civil facilitate cooperation and collaboration with other there is a risk of harm to economic or or criminal law, rule, regulation, order, agencies. property interests, identity theft or policy or license.

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POLICIES AND PRACTICES FOR STORING, EXEMPTIONS CLAIMED FOR THE SYSTEM: on those who are to respond, including RETRIEVING, ACCESSING, RETAINING, AND None. through the use of appropriate DISPOSING OF RECORDS IN THE SYSTEM: [FR Doc. 2014–02118 Filed 1–31–14; 8:45 am] automated, electronic, mechanical, or STORAGE: BILLING CODE 4810–AM–P other technological collection Paper and electronic records. techniques or other forms of information technology. RETRIEVABILITY: CORPORATION FOR NATIONAL AND Comments Records are retrievable by a variety of COMMUNITY SERVICE fields, including the name of the A 60-day Notice requesting public individual or type of financial product Information Collection; Submission for comment was published in the Federal or service provider, the date of the OMB Review, Comment Request Register on October 31, 2013. This inquiry, the inquiry control number, or comment period ended December 30, AGENCY: Corporation for National and some combination thereof. 2013. No public comments were Community Service. received from this Notice. SAFEGUARDS: ACTION: Notice. Description: CNCS is seeking Access to electronic records is approval of School Turnaround SUMMARY: The Corporation for National AmeriCorps Grantee Progress Report, restricted to authorized CFPB and Community Service (CNCS) has Ombudsman personnel who have been which is used by School Turnaround submitted a public information AmeriCorps grantees to provide issued non-transferrable access codes collection request (ICR) entitled School and passwords. Other records are information for CNCS staff to monitor Turnaround AmeriCorps Grantee grantee progress and to respond to maintained in locked file cabinets or Progress Report for review and approval rooms with access limited to those requests from Congress and other in accordance with the Paperwork stakeholders. CFPB Ombudsman personnel whose Reduction Act of 1995, Public Law 104– official duties require access. Type of Review: New. 13, (44 U.S.C. Chapter 35). Copies of Agency: Corporation for National and RETENTION AND DISPOSAL: this ICR, with applicable supporting Community Service. documentation, may be obtained by Per N1–587–12–03, item 4, records in Title: School Turnaround AmeriCorps calling the Corporation for National and this system are deleted or destroyed Grantee Progress Report. Community Service, Carla Ganiel, at OMB Number: TBD. ninety (90) days after the day on which 202–606–6773 or email to cganiel@ Agency Number: None. the inquiry was closed by the cns.gov. Individuals who use a Affected Public: School Turnaround Ombudsman. telecommunications device for the deaf AmeriCorps Grantees. SYSTEM MANAGER(S) AND ADDRESS: (TTY–TDD) may call 800–833–3722 Total Respondents: 50. Frequency: Biannual with one Consumer Financial Protection between 8:00 a.m. and 8:00 p.m. Eastern Time, Monday through Friday. additional final report required at Bureau, Ombudsman, 1700 G Street closeout of the grant. NW., Washington, DC 20552. ADDRESSES: Comments may be submitted, identified by the title of the Average Time per Response: 9 hours NOTIFICATION PROCEDURE: information collection activity, to the per submission. Office of Information and Regulatory Estimated Total Burden Hours: 900. Individuals seeking notification and Total Burden Cost (capital/startup): Affairs, Attn: Ms. Sharon Mar, OMB access to any record contained in this None. system of records, or seeking to contest Desk Officer for the Corporation for Total Burden Cost (operating/ its content, may inquire in writing in National and Community Service, by maintenance): None. accordance with instructions appearing any of the following two methods in Title 12, Chapter 10 of the CFR, within 30 days from the date of Dated: January 27, 2014. ‘‘Disclosure of Records and publication in the Federal Register: William Basl, Information.’’ Address such requests to: (1) By fax to: 202–395–6974, Director, AmeriCorps State and National. Chief Privacy Officer, Consumer Attention: Ms. Sharon Mar, OMB Desk [FR Doc. 2014–02099 Filed 1–31–14; 8:45 am] Financial Protection Bureau, 1700 G Officer for the Corporation for National BILLING CODE 6050–28–P Street NW., Washington, DC 20552. and Community Service; or (2) By email to: [email protected]. RECORD ACCESS PROCEDURES: SUPPLEMENTARY INFORMATION: The OMB DEPARTMENT OF ENERGY See ‘‘Notification Procedures’’ above. is particularly interested in comments which: Federal Energy Regulatory CONTESTING RECORD PROCEDURES: • Evaluate whether the proposed Commission See ‘‘Notification Procedures’’ above. collection of information is necessary for the proper performance of the [Project No. 10489–013] RECORD SOURCE CATEGORIES: functions of CNCS, including whether River Falls Municipal Utilities; Notice Information in this system is collected the information will have practical from (1) current or former officers, of Intent To File License Application, utility; Filing of Pre-Application Document, employees, shareholders, agents, and • Evaluate the accuracy of the independent contractors of covered and Approving Use of the Traditional agency’s estimate of the burden of the Licensing Process persons and service providers as proposed collection of information, defined by the Act; (2) those who including the validity of the a. Type of Filing: Notice of Intent to submit inquiries to the CFPB methodology and assumptions used; File License Application and Request to Ombudsman’s Office and their • Propose ways to enhance the Use the Traditional Licensing Process. representatives; and (3) employees of quality, utility, and clarity of the b. Project No.: 10489–013. the CFPB assigned to review and/or information to be collected; and c. Date Filed: November 27, 2013. respond to any inquiries, as requested • Propose ways to minimize the d. Submitted By: River Falls by the Ombudsman’s Office. burden of the collection of information Municipal Utilities.

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e. Name of Project: River Falls the Commission’s Web site (http:// associated with, but not a part of, the Hydroelectric Project. www.ferc.gov), using the ‘‘eLibrary’’ decisional record of the proceeding. f. Location: On the Kinnickinnic link. Enter the docket number, Unless the Commission determines that River, in Pierce county, Wisconsin. excluding the last three digits in the the prohibited communication and any g. Filed Pursuant to: 18 CFR 5.3 of the docket number field to access the responses thereto should become a part Commission’s regulations. document. For assistance, contact FERC of the decisional record, the prohibited h. Potential Applicant Contact: Brian Online Support at off-the-record communication will not Hatch, City of River Falls, 222 Lewis [email protected], (866) be considered by the Commission in Street, River Falls, WI 54022; (715) 425– 208–3676 (toll free), or (202) 502–8659 reaching its decision. Parties to a 0906; email—[email protected]. (TTY). A copy is also available for proceeding may seek the opportunity to i. FERC Contact: Bryan Roden- inspection and reproduction at the respond to any facts or contentions Reynolds at (202) 502–6618; or email at address in paragraph h. made in a prohibited off-the-record [email protected]. o. Register online at http:// communication, and may request that j. River Falls Municipal Utilities filed www.ferc.gov/docs-filing/ the Commission place the prohibited its request to use the Traditional esubscription.asp to be notified via communication and responses thereto Licensing Process on November 27, email of new filing and issuances in the decisional record. The 2013, and provided public notice of its related to this or other pending projects. request on December 5, 2013. In a letter For assistance, contact FERC Online Commission will grant such a request dated January 27, 2014, the Director of Support. only when it determines that fairness so requires. Any person identified below as the Division of Hydropower Licensing Dated: January 27, 2014. approved River Falls Municipal having made a prohibited off-the-record Kimberly D. Bose, Utilities’ request to use the Traditional communication shall serve the Secretary. Licensing Process. document on all parties listed on the k. With this notice, we are initiating [FR Doc. 2014–02130 Filed 1–31–14; 8:45 am] official service list for the applicable informal consultation with: (a) The U.S. BILLING CODE 6717–01–P proceeding in accordance with Rule Fish and Wildlife Service under section 2010, 18 CFR 385.2010. 7 of the Endangered Species Act and the DEPARTMENT OF ENERGY Exempt off-the-record joint agency regulations thereunder at communications are included in the 50 CFR, Part 402; and (b) the Wisconsin Federal Energy Regulatory decisional record of the proceeding, State Historic Preservation Officer, as Commission unless the communication was with a required by section 106, National cooperating agency as described by 40 [Docket No. RM98–1–000] Historical Preservation Act, and the CFR 1501.6, made under 18 CFR implementing regulations of the Records Governing Off-the-Record 385.2201(e)(1)(v). Advisory Council on Historic Communications; Public Notice Preservation at 36 CFR 800.2. The following is a list of off-the- l. With this notice, we are designating This constitutes notice, in accordance record communications recently River Falls Municipal Utilities as the with 18 CFR 385.2201(b), of the receipt received by the Secretary of the Commission’s non-federal of prohibited and exempt off-the-record Commission. The communications representative for carrying out informal communications. listed are grouped chronologically, in consultation, pursuant to section 7 of Order No. 607 (64 FR 51222, ascending order. These filings are the Endangered Species Act, and section September 22, 1999) requires available for review at the Commission 106 of the National Historic Commission decisional employees, who in the Public Reference Room or may be Preservation Act. make or receive a prohibited or exempt viewed on the Commission’s Web site at m. River Falls Municipal Utilities off-the-record communication relevant http://www.ferc.gov using the eLibrary filed a Pre-Application Document (PAD; to the merits of a contested proceeding, link. Enter the docket number, including a proposed process plan and to deliver to the Secretary of the excluding the last three digits, in the schedule) with the Commission, Commission, a copy of the docket number field to access the pursuant to 18 CFR 5.6 of the communication, if written, or a document. For assistance, please contact Commission’s regulations. summary of the substance of any oral FERC, Online Support at n. A copy of the PAD is available for communication. [email protected] or toll review at the Commission in the Public Prohibited communications are free at (866) 208–3676, or for TTY, Reference Room or may be viewed on included in a public, non-decisional file contact (202) 502–8659.

Docket No. Filed date Presenter or requester

Prohibited: 1. CP13–113–000 ...... 1–16–14 Phyllis S. Johnson. Exempt: 1. CP12–29–000 ...... 11–20–13 FERC Staff. 1 2. P–12790–000 ...... 1–08–14 FERC Staff. 2 3. CP13–483–000 CP13–492–000 ...... 1–08–14 FERC Staff. 3 4. CP13–84–000 ...... 1–13–14 Hon. Bill Shuster. 5. CP13–499–000 ...... 1–15–14 Hon. James L. Seward. 6. P–12796–004 ...... 1–27–14 Wilma Reip. 1 Telephone record. 2 Email record. 3 Telephone record.

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Dated: January 27, 2014. Any questions concerning this FEDERAL RESERVE SYSTEM Kimberly D. Bose, application should be directed to Secretary. Stephen Veatch, Sr., Director of Notice of Proposals To Engage in or [FR Doc. 2014–02131 Filed 1–31–14; 8:45 am] Certificates, Southwest Gas Storage To Acquire Companies Engaged in BILLING CODE 6717–01–P Company, 1300 Main Street, Houston, Permissible Nonbanking Activities Texas, 77002, or call (713) 989–2024, fax (713) 989–1205, or email The companies listed in this notice DEPARTMENT OF ENERGY [email protected]. have given notice under section 4 of the Any person or the Commission’s staff Bank Holding Company Act (12 U.S.C. Federal Energy Regulatory may, within 60 days after issuance of 1843) (BHC Act) and Regulation Y, (12 Commission the instant notice by the Commission, CFR part 225) to engage de novo, or to [Docket No. CP14–46–000] file pursuant to Rule 214 of the acquire or control voting securities or Commission’s Procedural Rules (18 CFR assets of a company, including the Southwest Gas Storage Company; 385.214) a motion to intervene or notice companies listed below, that engages Notice of Request Under Blanket of intervention and pursuant to Section either directly or through a subsidiary or Authorization 157.205 of the regulations under the other company, in a nonbanking activity NGA (18 CFR 157.205), a protest to the that is listed in § 225.28 of Regulation Y Take notice that on January 16, 2014, request. If no protest is filed within the Southwest Gas Storage Company (12 CFR 225.28) or that the Board has time allowed therefore, the proposed determined by Order to be closely (Southwest), 1300 Main Street, Houston, activity shall be deemed to be Texas 77002, filed in Docket No. CP14– related to banking and permissible for authorized effective the day after the bank holding companies. Unless 46–000, an application pursuant to time allowed for filing a protest. If a otherwise noted, these activities will be sections 157.205 and 157.216(b) of the protest is filed and not withdrawn conducted throughout the United States. Commission’s Regulations under the within 30 days after the allowed time Natural Gas Act (NGA) as amended, for filing a protest, the instant request Each notice is available for inspection requesting authorization to abandon in shall be treated as an application for at the Federal Reserve Bank indicated. place an 1,100 horsepower (HP) authorization pursuant to Section 7 of The notice also will be available for compressor unit and related equipment, the NGA. inspection at the offices of the Board of located at Southwest’s Waverly Storage Persons who wish to comment only Governors. Interested persons may Compressor Station in Morgan County, on the environmental review of this express their views in writing on the Illinois. The authorizations are project should submit an original and question whether the proposal complies requested under Southwest’s blanket two copies of their comments to the with the standards of section 4 of the certificate issued in Docket No. CP99– Secretary of the Commission. BHC Act. 230–000,1 all as more fully set forth in Environmental commenter’s will be the application which is on file with the Unless otherwise noted, comments placed on the Commission’s Commission and open to public regarding the applications must be environmental mailing list, will receive inspection. received at the Reserve Bank indicated copies of the environmental documents, Southwest proposes to abandon in or the offices of the Board of Governors and will be notified of meetings place the unit identified as W–10, with not later than February 28, 2014. associated with the Commission’s appurtenances. This unit was installed environmental review process. A. Federal Reserve Bank of Richmond under the authority granted in FPC Environmental commenter’s will not be (Adam M. Drimer, Assistant Vice Docket No. CP71–73.2 ANR intends to required to serve copies of filed President) 701 East Byrd Street, abandon its unit W–10 because it does documents on all other parties. Richmond, Virginia 23261–4528: not anticipate needing it at its present However, the non-party commentary, location for the foreseeable future, it has 1. Southern National Bancorp of will not receive copies of all documents become increasingly expensive to Virginia., Inc., McLean, Virginia, to filed by other parties or issued by the maintain. The proposed abandonment acquire 100 percent of the voting shares Commission (except for the mailing of activity will not involve ground of Prince George’s Federal Savings environmental documents issued by the disturbance or increases to operational Bank, Upper Marlboro, Maryland, and Commission) and will not have the right air or noise emissions. The unit has not thereby engage in operating a savings to seek court review of the been used for over twelve months. The association pursuant to section Commission’s final order. estimated cost to replicate the 1,100 HP 225.25(b)(4)(ii) of Regulation Y. compressor unit proposed to be The Commission strongly encourages electronic filings of comments, protests Board of Governors of the Federal Reserve abandoned is $8.5 million. System, January 29, 2014. The filing may also be viewed on the and interventions in lieu of paper using web at http://www.ferc.gov using the the ‘‘eFiling’’ link at http:// Michael J. Lewandowski, ‘‘eLibrary’’ link. Enter the docket www.ferc.gov. Persons unable to file Assistant Secretary of the Board. number excluding the last three digits in electronically should submit an original [FR Doc. 2014–02165 Filed 1–31–14; 8:45 am] and 7 copies of the protest or the docket number field to access the BILLING CODE 6210–01–P document. For assistance, please contact intervention to the Federal Energy FERC Online Support at Regulatory Commission, 888 First Street [email protected] or toll NE., Washington, DC 20426. free at (866) 208–3676, or TTY, contact Comment date: March 28, 2014. (202) 502–8659. Dated: January 27, 2014. Kimberly D. Bose, 1 See Southwest Gas Storage Co., 86 FERC Secretary. ¶ 62,232 (1999). 2 See Panhandle Eastern Pipeline Company, 45 [FR Doc. 2014–02129 Filed 1–31–14; 8:45 am] FPC 994 (1971). BILLING CODE 6717–01–P

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DEPARTMENT OF HEALTH AND To obtain copies of a supporting for public comment. Interested persons HUMAN SERVICES statement and any related forms for the are invited to send comments regarding proposed collection(s) summarized in this burden estimate or any other aspect Centers for Medicare & Medicaid this notice, you may make your request of this collection of information, Services using one of following: including any of the following subjects: 1. Access CMS’ Web site address at (1) The necessity and utility of the [Document Identifiers: CMS–10320] http://www.cms.hhs.gov/ proposed information collection for the Agency Information Collection PaperworkReductionActof1995. proper performance of the agency’s Activities: Proposed Collection; 2. Email your request, including your functions; (2) the accuracy of the Comment Request address, phone number, OMB number, estimated burden; (3) ways to enhance and CMS document identifier, to the quality, utility, and clarity of the AGENCY: Centers for Medicare & [email protected]. information to be collected; and (4) the Medicaid Services, HHS. 3. Call the Reports Clearance Office at use of automated collection techniques ACTION: Notice. (410) 786–1326. or other forms of information FOR FURTHER INFORMATION CONTACT: technology to minimize the information SUMMARY: The Centers for Medicare & Reports Clearance Office at (410) 786– collection burden. Medicaid Services (CMS) is announcing 1326. This information collection is an opportunity for the public to mandated by Sections 1103 and 10102 comment on CMS’ intention to collect SUPPLEMENTARY INFORMATION: of The Patient Protection and information from the public. Under the Contents Affordability Care Act, Public Law 111– Paperwork Reduction Act of 1995 (the 148 (ACA). Once all of the information This notice sets out a summary of the PRA), federal agencies are required to is collected from insurance issuers of use and burden associated with the publish notice in the Federal Register major medical health insurance (hereon following information collections. More concerning each proposed collection of referred to as issuers) and other affected detailed information can be found in information (including each proposed parties, it will be displayed at http:// each collection’s supporting statement extension or reinstatement of an existing www.healthcare.gov. Issuers are and associated materials (see collection of information) and to allow required to provide information ADDRESSES). CMS–10320 Health Care 60 days for public comment on the quarterly, and healthcare.gov will be Reform Insurance Web Portal proposed action. Interested persons are updated on a periodic schedule during Requirements 45 CFR Part 159. invited to send comments regarding our each quarter. The information provided Under the Paperwork Reduction Act burden estimates or any other aspect of will help the general public make (PRA) (44 U.S.C. 3501–3520), federal this collection of information, including educated decisions about organizations agencies must obtain approval from the any of the following subjects: the providing private health care insurance. Office of Management and Budget necessity and utility of the proposed In accordance with the provisions of (OMB) for each collection of information collection for the proper the ACA referenced above, the U.S. information they conduct or sponsor. performance of the agency’s functions; Department of Health and Human The term ‘‘collection of information’’ is the accuracy of the estimated burden; Services created a Web site called defined in 44 U.S.C. 3502(3) and 5 CFR ways to enhance the quality, utility, and healthcare.gov to meet these and other 1320.3(c) and includes agency requests clarity of the information to be provisions of the law, and data or requirements that members of the collected; and the use of automated collection was conducted for six months public submit reports, keep records, or collection techniques or other forms of based upon an emergency information provide information to a third party. information technology to minimize the collection request. The interim final rule Section 3506(c)(2)(A) of the PRA information collection burden. published on May 5, 2010 served as the requires federal agencies to publish a emergency Federal Register notice for DATES: Comments must be received by 60-day notice in the Federal Register the prior information collection request. April 1, 2014. concerning each proposed collection of The Office of Management and Budget ADDRESSES: When commenting, please information, including each proposed (OMB) reviewed the request under reference the document identifier or extension or reinstatement of an existing emergency processing and approved it OMB control number (OCN). To be collection of information, before on April 30, 2010. CMS will be assured consideration, comments and submitting the collection to OMB for submitting a new request to OMB for recommendations must be submitted in approval. To comply with this review and approval in accordance with any one of the following ways: requirement, CMS is publishing this the Paperwork Reduction Act of 1995. 1. Electronically. You may send your notice. The proposed information collection is comments electronically to http:// published to obtain comments from the Information Collections www.regulations.gov. Follow the public and affected agencies. instructions for ‘‘Comment or 1. Type of Information Collection We are currently updating a system Submission’’ or ‘‘More Search Options’’ Request: Revision of a currently (hereon referred to as web portal) where to find the information collection approved collection; Title: Health Care state Departments of Insurance and document(s) that are accepting Reform Insurance Web Portal issuers may log in using a custom user comments. Requirements 45 CFR Part 159; Use: In ID and password validation. The states 2. By regular mail. You may mail compliance with the requirement of may be asked to provide information on written comments to the following section 3506(c)(2)(A) of the Paperwork issuers in their state and various Web address: CMS, Office of Strategic Reduction Act of 1995, the Center for sites maintained for consumers. The Operations and Regulatory Affairs, Consumer Information and Insurance issuers will be tasked with providing Division of Regulations Development, Oversight, Centers for Medicare and information on their major medical Attention: Document Identifier/OMB Medicaid Services, Department of insurance products and plans. They will Control Number lll, Room C4–26– Health and Human Services, is ultimately be given the choice to 05, 7500 Security Boulevard, Baltimore, publishing the following summary of a download a basic information template Maryland 21244–1850. proposed information collection request to enter data then upload into the web

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portal; to manually enter data within the DEPARTMENT OF HEALTH AND equipment and services. State agencies web portal itself; or to submit .xml files HUMAN SERVICES that submit APD requests provide the containing their information. Once the Department of Health and Human states and issuers submit their data, they Administration for Children and Services (HHS) with the following will receive an email notifying them of Families information necessary to determine the any errors, and that their submission States’ needs to acquire the requested Proposed Information Collection was received. ADP equipment and/or services: Activity; Comment Request CMS is mandating the issuers verify (1) A statement of need; and update their information on a Proposed Projects (2) A requirements analysis and quarterly basis and is requesting that Title: ADP & Services Conditions for feasibility study; States verify State-submitted FFP for ACF. (3) A procurement plan; information on an annual basis. In the OMB No.: 0970–0417. (4) A proposed activity schedule; and, event that an issuer enhances its Description: State child support (5) A proposed budget. existing plans, proposes new plans, or agencies are required to establish and The proposed information collection, deactivates plans, the organization operate a federally approved statewide is authorized by (1) 42 U.S.C. 654A, would be required to update the automated data processing and which provides a state agency to have information retrieval system to assist in information in the web portal. Changes a single statewide automated data child support enforcement. States are occurring during the three month processing and information retrieval required to submit an initial advance quarterly periods will be allowed system and sets forth the requirements automated data processing planning utilizing effective dates for both the of that system; (2) 42 U.S.C. 654(16), document (APD) containing information plans and rates associated with the which provides the state must submit an to assist the Secretary of the Department plans. initial, and annually updated, advance of Health and Human Services in automated data processing planning Form Number: CMS–10320 (OMB#: determining if the state computerized document for project approval; (3) 45 0938–1086); Frequency: Reporting— support enforcement system meets CFR 307.15, which provides the Annually/Quarterly; Affected Public: federal requirements and providing requirements for approval of advance health insurance issuers in the federal approval. States are also individual and small group markets; required to submit annually an updated planning documents; (4) 42 U.S.C. Number of Respondents: 801; Total APD for oversight purposes. Based on 652(d), which provides the Secretary Annual Responses: 3,051; Total Annual assessment of the information provided with the authority to approve an APD Hours: 27,833. (For policy questions in the initial or updated APDs, states and to assess the computerized support regarding this collection contact Kim that do not meet federal requirement enforcement system status; 45 CFR Heckstall at 410 786 1647.) approval will need to complete an 95.626, which determines when an Independent Verification and Validation Dated: January 28, 2014. independent verification and validation. The Advance Planning Document must be completed. Martique Jones, (APD) process, established in the rules HHS’ determination of a State Deputy Director, Regulations Development at 45 CFR Part 95, Subpart F, is the Agency’s need to acquire requested ADP Group, Office of Strategic Operations and procedure by which States request and equipment or services is authorized at Regulatory Affairs. obtain approval for Federal financial sections 602(a(5)), 652(a)(1), 1396(a)(4) [FR Doc. 2014–02124 Filed 1–31–14; 8:45 am] participation in their cost of acquiring and 1302 of United States Code. BILLING CODE 4120–01–P Automatic Data Processing (ADP) Respondents: States.

ANNUAL BURDEN ESTIMATES

Number of Average Instrument Number of responses per burden hours Total burden respondents respondent per response hours

RFP and Contract ...... 4 1.5 4 324 Emergency Funding Request ...... 5 .1 2 1 Biennial Reports ...... 54 1 1.50 81 Advance Planning Document ...... 34 1.2 120 4,896 Operational Advance Planning Document ...... 20 1 30 600 Independent Verification and Validation (ongoing) ...... 3 4 10 120 Independent Verification and Validation (semiannually) ...... 1 2 16 32 Independent Verification and Validation (quarterly) ...... 1 4 30 120 System Certification ...... 1 1 240 240

Estimated Total Annual Burden information can be obtained and identified by the title of the information Hours: 6,414. comments may be forwarded by writing collection. In compliance with the requirements to the Administration for Children and The Department specifically requests of Section 506(c)(2)(A) of the Paperwork Families, Office of Planning, Research comments on: (a) Whether the proposed Reduction Act of 1995, the and Evaluation, 370 L’Enfant collection of information is necessary Administration for Children and Promenade SW., Washington, DC 20447, for the proper performance of the Families is soliciting public comment Attn: ACF Reports Clearance Officer. functions of the agency, including on the specific aspects of the Email address: infocollection@ whether the information shall have information collection described above. acf.hhs.gov. All requests should be practical utility; (b) the accuracy of the Copies of the proposed collection of agency’s estimate of the burden of the

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proposed collection of information; (c) DATES: Submit either electronic or utility; (2) the accuracy of FDA’s the quality, utility, and clarity of the written comments on the collection of estimate of the burden of the proposed information to be collected; and (d) information by April 4, 2014. collection of information, including the ways to minimize the burden of the ADDRESSES: Submit electronic validity of the methodology and collection of information on comments on the collection of assumptions used; (3) ways to enhance respondents, including through the use information to http:// the quality, utility, and clarity of the of automated collection techniques or www.regulations.gov. Submit written information to be collected; and (4) other forms of information technology. comments on the collection of ways to minimize the burden of the Consideration will be given to information to the Division of Dockets collection of information on comments and suggestions submitted Management (HFA–305), Food and Drug respondents, including through the use within 60 days of this publication. Administration, 5630 Fishers Lane, Rm. of automated collection techniques, 1061, Rockville, MD 20852. All when appropriate, and other forms of Robert Sargis, comments should be identified with the information technology. Reports Clearance Officer. docket number found in brackets in the Animal Drug User Fee Cover Sheet— [FR Doc. 2014–02175 Filed 1–31–14; 8:45 am] heading of this document. BILLING CODE 4184–01–P (OMB Control Number 0910–0539)— FOR FURTHER INFORMATION CONTACT: FDA Extension PRA Staff, Office of Operations, Food and Drug Administration, 1350 Piccard Under section 740 of the FD&C Act DEPARTMENT OF HEALTH AND Dr., PI50–400B, Rockville, MD 20850, (21 U.S.C. 379j-12), as amended by HUMAN SERVICES [email protected]. ADUFA (Pub. L. 108–130), FDA has the authority to assess and collect for Food and Drug Administration SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501–3520), Federal certain animal drug user fees. Because Agencies must obtain approval from the the submission of user fees concurrently [Docket No. FDA–2014–N–0078] Office of Management and Budget with applications and supplements is required, review of an application Agency Information Collection (OMB) for each collection of cannot begin until the fee is submitted. Activities; Proposed Collection; information they conduct or sponsor. The types of fees that require a cover Comment Request; Animal Drug User ‘‘Collection of information’’ is defined sheet are certain animal drug Fee Act Cover Sheet in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes Agency requests application fees and certain supplemental animal drug application AGENCY: Food and Drug Administration, or requirements that members of the fees. The ADUFA cover sheet (Form HHS. public submit reports, keep records, or provide information to a third party. FDA 3546) is designed to provide the ACTION: Notice. Section 3506(c)(2)(A) of the PRA (44 minimum necessary information to U.S.C. 3506(c)(2)(A)) requires Federal determine whether a fee is required for SUMMARY: The Food and Drug Agencies to provide a 60-day notice in the review of an application or Administration (FDA) is announcing an the Federal Register concerning each supplement, to determine the amount of opportunity for public comment on the proposed collection of information, the fee required, and to assure that each proposed collection of certain including each proposed extension of an animal drug user fee payment and each information by the Agency. Under the existing collection of information, animal drug application for which Paperwork Reduction Act of 1995 (the before submitting the collection to OMB payment is made is appropriately linked PRA), Federal Agencies are required to for approval. To comply with this to the payment that is made. The form, publish notice in the Federal Register requirement, FDA is publishing notice when completed electronically, will concerning each proposed collection of of the proposed collection of result in the generation of a unique information, including each proposed information set forth in this document. payment identification number used in extension of an existing collection of With respect to the following tracking the payment. FDA will use the information, and to allow 60 days for collection of information, FDA invites information collected to initiate public comment in response to the comments on these topics: (1) Whether administrative screening of new animal notice. This notice solicits comments on the proposed collection of information drug applications and supplements to the paperwork burden of animal drug is necessary for the proper performance determine if payment has been received. sponsors to fill out the Animal Drug of FDA’s functions, including whether FDA estimates the burden of this User Fee Act (ADUFA) cover sheet. the information will have practical collection of information as follows:

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

Average FD&C Act section FDA Form No. Number of Number of responses Total annual burden per Total hours amended by ADUFA respondents per respondent responses response

740(a)(1) ...... 3546 (Cover Sheet) .... 17 1 time for each appli- 17 1 17 cation. 1There are no capital costs or operating and maintenance costs associated with this collection of information.

Respondents to this collection of drugs potentially subject to ADUFA. average number of submissions received information are new animal drug However, not all manufacturers or by FDA in fiscal years 2011–13. The applicants or manufacturers. Based on sponsors will have any submissions in estimated hours per response are based FDA’s database system, there are an a given year and some may have on past FDA experience with the estimated 173 manufacturers of multiple submissions. The total number various submissions. The hours per products or sponsors of new animal of annual responses is based on the

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response are based on the average of information they conduct or sponsor. to in the Program Standards document these estimates. ‘‘Collection of information’’ is defined as ‘‘quality records’’) and has one or Dated: January 29, 2014. in 44 U.S.C. 3502(3) and 5 CFR more corresponding forms and 1320.3(c) and includes Agency requests worksheets to facilitate the collection of Leslie Kux, or requirements that members of the information needed to assess the retail Assistant Commissioner for Policy. public submit reports, keep records, or food regulatory program against that [FR Doc. 2014–02190 Filed 1–31–14; 8:45 am] provide information to a third party. standard. The respondents are State, BILLING CODE 4160–01–P Section 3506(c)(2)(A) of the PRA (44 local, territorial, tribal, and potentially U.S.C. 3506(c)(2)(A)) requires Federal other Federal regulatory agencies. Agencies to provide a 60-day notice in Regulatory agencies may use existing DEPARTMENT OF HEALTH AND the Federal Register concerning each available records or may choose to HUMAN SERVICES proposed collection of information, develop and use alternate forms and Food and Drug Administration including each proposed extension of an worksheets that capture the same existing collection of information, information. [Docket No. FDA–2011–N–0017] before submitting the collection to OMB In the course of their normal for approval. To comply with this activities, State, local, territorial, tribal, Agency Information Collection requirement, FDA is publishing notice and Federal regulatory agencies already Activities; Proposed Collection; of the proposed collection of collect and keep on file many of the Comment Request; Voluntary National information set forth in this document. records needed as quality records to Retail Food Regulatory Program With respect to the following document compliance with each of the Standards collection of information, FDA invites Program Standards. Although the detail comments on these topics: (1) Whether and format in which this information is AGENCY: Food and Drug Administration, the proposed collection of information collected and recorded may vary by HHS. is necessary for the proper performance jurisdiction, records that are kept as a ACTION: Notice. of FDA’s functions, including whether usual and customary part of normal the information will have practical agency activities include inspection SUMMARY: The Food and Drug utility; (2) the accuracy of FDA’s records, written quality assurance Administration (FDA) is announcing an estimate of the burden of the proposed procedures, records of quality assurance opportunity for public comment on the collection of information, including the checks, staff training certificates and proposed collection of certain validity of the methodology and other training records, a log or database information by the Agency. Under the assumptions used; (3) ways to enhance of food-related illness or injury Paperwork Reduction Act of 1995 (the the quality, utility, and clarity of the complaints, records of investigations PRA), Federal Agencies are required to information to be collected; and (4) resulting from such complaints, an publish notice in the Federal Register ways to minimize the burden of the inventory of inspection equipment, concerning each proposed collection of collection of information on records of outside audits, and records of information, including each proposed respondents, including through the use outreach efforts (e.g., meeting agendas extension of an existing collection of of automated collection techniques, and minutes, documentation of food information, and to allow 60 days for when appropriate, and other forms of safety education activities). No new public comment in response to the information technology. recordkeeping burden is associated with notice. This notice solicits comments on these existing records, which are Voluntary National Retail Food the information collection provisions of already a part of usual and customary Regulatory Program Standards (OMB the Voluntary National Retail Food program recordkeeping activities by Control Number 0910–0621—Extension) Regulatory Program Standards. State, local, territorial, tribal and DATES: Submit either electronic or The Voluntary National Retail Food Federal regulatory agencies, and which written comments on the collection of Regulatory Program Standards (the can serve as quality records under the information by April 4, 2014. Program Standards) define nine Program Standards. ADDRESSES: Submit electronic essential elements of an effective State, local, territorial, tribal and comments on the collection of regulatory program for retail food Federal regulatory agencies that enroll information to http:// establishments, establish basic quality in the Program Standards and seek www.regulations.gov. Submit written control criteria for each element, and listing in the FDA National Registry are comments on the collection of provide a means of recognition for those required to report to FDA on the information to the Division of Dockets State, local, territorial, tribal and completion of the following three Management (HFA–305), Food and Drug Federal regulatory programs that meet management tasks outlined in the Administration, 5630 Fishers Lane, rm. the Program Standards. The program Program Standards: (1) Conducting a 1061, Rockville, MD 20852. All elements addressed by the Program program self-assessment; (2) conducting comments should be identified with the Standards are as follows: (1) Regulatory a risk factor study of the regulated docket number found in brackets in the foundation; (2) trained regulatory staff; industry; and (3) obtaining an heading of this document. (3) inspection program based on Hazard independent outside audit (verification Analysis and Critical Control Point audit). The results are reported to FDA FOR FURTHER INFORMATION CONTACT: FDA (HACCP) principles; (4) uniform on Form FDA 3519, ‘‘FDA National PRA Staff, Office of Operations, Food inspection program, (5) foodborne Registry Report’’ and Form FDA 3520, and Drug Administration, 1350 Piccard illness and food defense preparedness ‘‘Permission to Publish in National Dr., PI50–400B, Rockville, MD 20850, and response; (6) compliance and Registry.’’ These forms are provided in [email protected]. enforcement; (7) industry and the Program Standards document, and SUPPLEMENTARY INFORMATION: Under the community relations; (8) program are also provided on FDA’s Web site at: PRA (44 U.S.C. 3501–3520), Federal support and resources; and (9) program http://www.fda.gov/Food/ Agencies must obtain approval from the assessment. Each standard includes a GuidanceRegulation/ Office of Management and Budget list of records needed to document RetailFoodProtection/ (OMB) for each collection of conformance with the standard (referred ProgramStandards/default.htm. If a

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regulatory agency follows all the FDA analyzed whether incorporation to the Administrative Procedures recordkeeping recommendations in the of these two changes alters its estimate document in the 2013 version of the individual standards and their sample of the recordkeeping and reporting Program Standards. Because there were worksheets, it will have all the burdens. FDA concluded that there will no changes to content, there will be no information needed to complete the be no change to the annual changes to the annual recordkeeping forms. recordkeeping burden estimate. In the burden. The two noted changes had no In April 2012, the Conference for course of their normal activities, State, effect on the reporting burden hour Food Protection recommended that FDA local, territorial, tribal, and Federal estimates shown in Table 2 of this make two changes to the Program regulatory agencies already implement document. Standards. The changes have been and document intervention strategies to incorporated into the 2013 version, the address identified risk factors at Recordkeeping draft of which is available on FDA’s regulated food establishments. The FDA’s recordkeeping burden estimate Web site. The first change was the intention of the new criterion in addition of a new criterion in Standard includes time required for a state, local, Standard 9 is twofold: (1) To ensure that 9. In order to show conformance with territorial, tribal, or Federal agency to development and implementation of the Standard 9, jurisdictions must review the instructions in the Program intervention strategy is guided by data implement an intervention strategy to Standards, compile information from collected through the risk factor study, address risk factors identified in the risk existing sources, and create any records or other similar tools and (2) to ensure factor study, and then assess the recommended in the Program Standards that the regulatory agency considers the effectiveness of the intervention strategy that are not already kept in the normal effectiveness of the implemented through subsequent risk factor studies course of the agency’s usual and or other similar tools. The second intervention strategy in light of subsequent data. FDA notes that customary activities. Sample worksheets change was the creation of an are provided to assist in this Administrative Procedures document. jurisdictions have the option to analyze their inspection data as indicated by the compilation. In estimating the time The procedures for enrolling and needed for the program self-assessment participating in the Program Standards Standard 9 criteria, in lieu of (Program Standards 1 through 8, shown were previously included in Standard 9, conducting a risk factor study. This is a in Table 1 of this document), FDA along with other criteria specific to less resource-intensive method for conducting a risk factor study. tracking risk factor trends over time. considered responses from four State Stakeholders requested that information However, the Agency has not changed and three local jurisdictions that pertaining to enrollment and its estimate of 333 hours for Standard 9 participated in an FDA Program participation in the Program Standards shown in Table 2 of this document. The Standards Pilot study. Table 2 of this be included in a separate, stand-alone Agency will reevaluate its estimate document shows the estimated document. Therefore, the information based on data it receives in the future recordkeeping burden for the about the administration of the Program from participating jurisdictions. As completion of the baseline data Standards, previously in Standard 9, is stated in the preceding paragraph, the collection, and Table 3 of this document now provided in the Administrative second change resulted in the relocation shows the estimated recordkeeping Procedures document. of existing information from Standard 9 burden for the verification audit.

TABLE 1—SELF-ASSESSMENT

Hours per Standard Recordkeeping activity record

No. 1: Regulatory Foundation ...... Self-Assessment: Completion of worksheet recording results of evaluations and 16 comparison on worksheets.1 No. 2: Trained Regulatory Staff ...... Self-Assessment: Completion of CFP Field Training Manual and Documentation of 19.3 Successful Completion—Field Training Process; completion of summary work- sheet of each employee training records.12 No. 3: HACCP Principles ...... Self-Assessment: Completion of worksheet documentation 1 ...... 4 No. 4: Uniform Inspection Program ...... Self-Assessment: Completion of worksheet documentation of jurisdiction’s quality 19 assurance procedures.12 No. 5: Foodborne Illness Investigation ..... Self-Assessment: Completion of worksheet documentation 1 ...... 5 No. 6: Compliance Enforcement ...... Self-Assessment: Selection and review of 20 to 70 establishment files at 25 min- 19 utes per file. Estimate is based on a mean number of 45. Completion of work- sheet.1 No. 7: Industry & Community Relations ... Self-Assessment: Completion of worksheet 1 ...... 2 No. 8: Program Support and Resources .. Self-Assessment: Selection and review of establishment files 1 ...... 8

Total ...... 92.3 1 Or comparable documentation. 2 Estimates will vary depending on number of regulated food establishments and the number of inspectors employed by the jurisdiction.

TABLE 2—BASELINE DATA COLLECTION

Hours per Standard Recordkeeping activity record

No. 9: Program Assessment ...... Risk Factor Study and Intervention Strategy 1 ...... 333 1 Calculation based on mean sample size of 39 and average FDA inspection time for each establishment type. Estimates will vary depending on number of regulated food establishments within a jurisdiction and the number of inspectors employed by the jurisdiction.

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TABLE 3—VERIFICATION AUDIT

Hours per Activity Recordkeeping activity record

Administrative Procedures ...... Verification Audit 1 ...... 46.15 1 We estimate that no more than 50% of time spent to complete self-assessment of all 9 Standards is spent completing verification audit work- sheets. Time will be considerably less if less than 9 standards require verification audits.

FDA estimates the burden of this collection of information as follows:

TABLE 4—ESTIMATED ANNUAL RECORDKEEPING BURDEN 1

Number of Average Activity Number of records per Total annual burden per Total hours recordkeepers recordkeeper records recordkeeping

Recordkeeping for FDA Worksheets 2 ...... 500 1 500 94.29 47,145 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 Or comparable documentation.

FDA bases its estimates of the number jurisdictions must perform a total of verification audit, risk factor study of recordkeepers and the hours per 471.45 hours (92.3 + 333 + 46.15 = (baseline report), risk factor study record on its experience with the 471.45). Enrolled jurisdictions must (update), and action plan; signature of Program Standards. As of September 30, conduct the work described in Tables 1, the program manager; and date the form 2013, 563 jurisdictions were enrolled in 2, and 3 over a 5-year period. Therefore was completed. Form FDA 3520 the Program Standards. However, based FDA estimates that, annually, 500 requires the name and address of the upon the level of ongoing support recordkeepers will spend 94.29 hours jurisdiction, contact information for the provided by FDA to enrolled (471.45 ÷ 5 = 94.29) performing the enrollee’s designated contact person, jurisdictions and the number of forms required recordkeeping for a total of completion date of the self-assessment, submitted annually, FDA estimates that 47,145 hours as shown in Table 4 of this date of the verification audit report, no more than 500 jurisdictions actively document. name of the auditor, signature of the participate in the Program Standards Reporting official completing the form, and date during any given year. There are the form was completed. FDA requires regulatory jurisdictions approximately 3,000 jurisdictions in the that participate in the Program The reporting burden in Table 5 of United States and its territories that Standards to submit two forms this document includes only the time have retail food regulatory programs. annually: Form FDA 3519, ‘‘FDA necessary to fill out and send the forms, Enrollment in the Program Standards is National Registry Report,’’ and Form as compiling the underlying information voluntary and, therefore, FDA does not FDA 3520, ‘‘Permission to Publish in (including self-assessment reports, expect all jurisdictions to participate. National Registry.’’ Form FDA 3519 baseline surveys, outside audits, and FDA bases its estimate of the hours requires the name and address of the supporting documentation) is accounted per record on the recordkeeping jurisdiction; completion dates for the for under the recordkeeping estimates in estimates for the management tasks of self-assessment, risk factor study Table 4 of this document. self-assessment, risk factor study, and (original and update), and verification FDA estimates the reporting burden verification audit (Tables 1, 2, and 3 of audit; names of the person(s) who for this collection of information as this document) that enrolled completed the self-assessment, follows:

TABLE 5—ESTIMATED ANNUAL REPORTING BURDEN 1

Number of Average Activity FDA form Number of responses per Total annual burden per Total hours respondents respondent responses response

Submission of ‘‘FDA National Registry Report’’ ...... 3519 500 1 500 0.1 50 Submission of ‘‘Permission to Publish in National Registry’’ ...... 3520 500 1 500 0.1 50 Request for documentation of successful completion of staff training ...... Conference for 500 3 1,500 0.1 150 Food Protection Training Plan and Log

Total ...... 250 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

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FDA bases its estimates of the number invasive glaucoma surgical (MIGS) receive confirmation after they have of respondents and the hours per devices with a focus on clinical trial been accepted. You will be notified if response on its experience with the design and conduct. Glaucoma experts you are on a waiting list. Program Standards. As explained will present evidence to better define Food and beverages will be available previously in this document, FDA the appropriate patient population, as for purchase by participants during the estimates that no more than 500 well as the appropriate evaluation of workshop breaks. regulatory jurisdictions will participate effectiveness and safety for MIGS For more information on the in the Program Standards in any given devices. The primary goal of the workshop, please see the FDA’s Medical year. FDA estimates a total of 12 workshop is to discuss the appropriate Devices News & Events—Workshops & minutes annually for each enrolled clinical trial design and conduct for Conferences calendar at http:// jurisdiction to complete both forms. MIGS devices in order to facilitate www.fda.gov/MedicalDevices/ FDA bases its estimate on the small bringing these innovative technologies NewsEvents/WorkshopsConferences/ number of data elements on the two to the U.S. marketplace. default.htm. (Select this public forms and the ease of availability of the Date and Time: The public workshop workshop from the posted events list.) information. FDA estimates that, will be held on February 26, 2014, from Streaming Webcast of the Public annually, 500 regulatory jurisdictions 1 p.m. to 6 p.m. Materials may be Workshop: This public workshop will will submit one Form FDA 3519 for a picked up starting at 12 noon. not be Webcast. Transcripts: Please be advised that as total of 500 annual responses. Each Location: The public workshop will soon as a transcript is available, it will submission is estimated to take 0.1 hour be held at the Washington Marriott at be accessible at http:// per response for a total of 50 hours. FDA Metro Center, 775 12th St. NW., www.regulations.gov. It may be viewed estimates that, annually, 500 regulatory Washington, DC 20005. at the Division of Dockets Management jurisdictions will submit one Form FDA Contact: Michelle Tarver, Center for (HFA–305), Food and Drug 3520 for a total of 500 annual responses. Devices and Radiological Health, Food Administration, 5630 Fishers Lane, Rm. Each of these submissions is estimated and Drug Administration, 10903 New 1061, Rockville, MD 20852. A transcript to take 0.1 hour per response for a total Hampshire Ave., Bldg. 66, Rm. 2504, Silver Spring, MD 20993, 301–796– will also be available in either hardcopy of 50 hours. FDA estimates that, 5620, FAX: 301–847–8126, email: or on CD–ROM, after submission of a annually, 500 regulatory jurisdictions [email protected]. Freedom of Information request. Written will submit three requests for Registration: AGS will charge a requests are to be sent to the Division documentation of successful completion registration fee to cover its share of the of Freedom of Information (ELEM– of staff training using the CFP Training expenses associated with the workshop. 1029), Food and Drug Administration, Plan and Log for a total of 1,500 annual The registration fee is $150 for AGS 12420 Parklawn Dr., Element Bldg., responses. Each submission is estimated members and $300 for non-members in Rockville, MD 20857. A link to the to take 0.1 hour per response for a total advance. Registration is available on a transcript will also be available of 150 hours. Thus, the total reporting first-come, first-served basis. Persons approximately 45 days after the public burden for this information collection is interested in attending this public workshop on the Internet at http:// 250 hours. workshop may register online or by www.fda.gov/MedicalDevices/ Dated: January 29, 2014. telephone. The deadline for online NewsEvents/WorkshopsConferences/ Leslie Kux, registration is February 10, 2014, at 5 default.htm. (Select this public Assistant Commissioner for Policy. p.m. EDT. There will be onsite workshop from the posted events list). [FR Doc. 2014–02191 Filed 1–31–14; 8:45 am] registration on the day of the public SUPPLEMENTARY INFORMATION: BILLING CODE 4160–01–P workshop with the cost of onsite registration being $150 for AGS I. Background members and $500 for non-members. Glaucoma is estimated to be the DEPARTMENT OF HEALTH AND Early registration is recommended second leading cause of blindness HUMAN SERVICES because facilities are limited. worldwide. Management of this often If you need special accommodations chronic disease is a challenge for both Food and Drug Administration due to a disability, please contact Ms. patients and health care providers, Susan Monahan at requiring the use of multiple modalities [Docket No. FDA–2013–N–0001] [email protected] or 301– including drops, lasers, and surgery. In American Glaucoma Society/Food and 796–5661 no later than February 3, recent years, innovative devices have Drug Administration Workshop on 2014. been developed to decrease the risk of Supporting Innovation for Safe and To register for the public workshop, glaucoma surgery. These MIGS devices Effective Minimally Invasive Glaucoma please visit the AGS Web site (http:// have moved the option for surgical Surgery; Public Workshop www.americanglaucomasociety.net/ intervention towards less severe forms professionals/events/). Those interested of the disease. Hence, the appropriate AGENCY: Food and Drug Administration, in attending but unable to access the clinical trial design and conduct for the HHS. electronic registration site should evaluation of the safety and ACTION: Notice of public workshop. contact AGS Customer Service to effectiveness of MIGS devices has register at 415–561–8587 or 866–561– become a topic of debate. At this The Food and Drug Administration 8558 (toll free). Please provide complete workshop, we will discuss the (FDA) is announcing the following contact information for each attendee, important clinical trial components public workshop entitled ‘‘American including name, title, affiliation, including subject enrollment criteria, Glaucoma Society (AGS)/FDA address, email, and telephone number. safety parameters, and effectiveness Workshop on Supporting Innovation for If there are any questions with endpoints. The workshop seeks to Safe and Effective Minimally Invasive registration, please contact the AGS involve industry and academia in Glaucoma Surgery.’’ This workshop will administrative offices at 415–561–8587 addressing the challenges in the address the current challenges in the or email to the attention of Amber development of appropriate clinical assessment of implantable minimally Mendez at [email protected]. Registrants will trials to adequately evaluate safety and

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effectiveness for implantable MIGS consideration for membership on the other scientific areas relevant to FDA devices. By bringing together relevant Science Board. Nominations received regulated products such as systems stakeholders, we hope to facilitate the after March 5, 2014 will be considered biology, informatics, nanotechnology, improvement of regulatory science in for nomination to the Board should combination products and relevant this rapidly evolving product area. nominees still be needed. areas of behavioral and social science. FDA and AGS recognize the unique ADDRESSES: You may submit your Members shall be chosen from academia opportunity this workshop provides for information by logging into the FDA and industry. The Science Board may all stakeholders of the ophthalmic advisory Committee Membership also include technically qualified device community to work together to Nomination Portal: https:// federal members. improve trial design for the assessment www.accessdata.fda.gov/scripts/ III. Nomination Procedures of new MIGS devices, and, thereby, FACTRSPortal/FACTRS/index.cfm or by strengthen contributions to improved mail to Advisory Committee Oversight Any interested person may nominate one or more qualified individuals for patient care and the protection of the and Management Staff, 10903 New membership on the Science Board. Self- public health. Hampshire Ave., Bldg. 32, Rm. 5103, nominations are also accepted. Silver Spring, MD 20993–0002. II. Topics for Discussion at the Public Nominations must include a current, Information about becoming a member Workshop complete resume or curriculum vitae for on an FDA advisory committee can also each nominee, including a current Topics to be discussed at the public be obtained by visiting FDA’s Web site business address and/or home address, workshop include, but are not limited at http://www.fda.gov/ telephone number, and email address if to: AdvisoryCommittees/default.htm. • available. Nominations must also Definition of MIGS and overview of FOR FURTHER INFORMATION CONTACT: these procedures; acknowledge that the nominee is aware • Martha Monser, Office of the Chief of the nomination unless self- defining the patient population for Scientist, Food and Drug implantable MIGS devices; nominated. FDA will ask potential • Administration, 10903 New Hampshire candidates to provide detailed determining effectiveness endpoints Ave., Bldg. 32, Rm. 4286, Silver Spring, for implantable MIGS devices; and information concerning such matters • MD 20993–0002, 301–796–4627, email: related to financial holdings, determining the appropriate safety [email protected]. parameters for implantable MIGS employment, and research grants and/or SUPPLEMENTARY INFORMATION: devices. FDA is contracts to permit evaluation of These topics will be presented by requesting nominations to the Science possible sources of conflicts of interest. experts in the associated area, and will Board. The Science Board will meet This notice is issued under the Federal Advisory Act (5 U.S.C. app. 2) be discussed by panelists with extensive approximately three times a year. All and 21 CFR part 14, relating to advisory experience conducting glaucoma meetings will be announced in the committees. clinical research. Federal Register at least 15 days prior to each public meeting. Dated: January 29, 2014. Dated: January 28, 2014. Jill Hartzler Warner, Leslie Kux, I. General Function of the Committee Acting Associate Commissioner for Special Assistant Commissioner for Policy. The Science Board shall provide Medical Programs. [FR Doc. 2014–02146 Filed 1–31–14; 8:45 am] advice primarily to the Commissioner [FR Doc. 2014–02155 Filed 1–31–14; 8:45 am] BILLING CODE 4160–01–P and other appropriate officials on specific complex scientific and BILLING CODE 4160–01–P technical issues important to FDA and DEPARTMENT OF HEALTH AND its mission, including emerging issues DEPARTMENT OF HEALTH AND HUMAN SERVICES within the scientific community. HUMAN SERVICES Additionally, the Science Board will Food and Drug Administration provide advice that supports the Agency National Institutes of Health [Docket No. FDA–2014–N–0124] in keeping pace with technical and scientific developments, including in National Institute on Drug Abuse; Science Board to the Food and Drug regulatory science; and input into the Amended Notice of Meeting Agency’s research agenda; and on Administration: Request for Notice is hereby given of changes in upgrading its scientific and research Nominations the meeting of the National Institute on facilities and training opportunities. It Drug Abuse Special Emphasis Panel, AGENCY: Food and Drug Administration, will also provide, where requested, HHS. February 6, 2014, 10:00 a.m. to February expert review of Agency sponsored 6, 2014, 12:00 p.m., National Institutes ACTION: Notice. intramural and extramural scientific of Health, Neuroscience Center, 6001 research programs. SUMMARY: The Food and Drug Executive Boulevard, Rockville, MD Administration (FDA) is requesting II. Desired Expertise 20852, which was published in the nominations to serve on the Science FDA is specifically seeing persons Federal Register on January 10, 2014, Board to FDA (Science Board). knowledgeable in the fields of food 79, 8 FRN2014–00301. The date of the meeting is changed to FDA seeks to include the views of science, safety, and nutrition; chemistry; February 11, 2014. The meeting is women and men, members of all racial pharmacology; translational and clinical closed to the public. and ethnic groups, and individuals with medicine and research; toxicology; and without disabilities on its advisory biostatistics; medical devices; imaging; Dated: January 28, 2014. committees and, therefore, encourages robotics; cell and tissue based products; Michelle Trout, nominations of appropriately qualified regenerative medicine; public health Program Analyst, Office of Federal Advisory candidates from these groups. and epidemiology; international health Committee Policy. DATES: Nominations received on or and regulation; product safety; product [FR Doc. 2014–02103 Filed 1–31–14; 8:45 am] before March 5, 2014, will be given first manufacturing sciences and quality; and BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND Contact Person: Keary A Cope, Ph.D. for the review, discussion, and HUMAN SERVICES Scientific Review Officer, Office of Scientific evaluation of individual intramural Review/DERA, National Heart, Lung, and programs and projects conducted by the National Institutes of Health Blood Institute, 6701 Rockledge Drive, Room NATIONAL HEART, LUNG, AND 7190, Bethesda, MD 20892–7924, 301–435– 2222, [email protected]. BLOOD INSTITUTE, including National Institute On Aging; Amended consideration of personnel Notice of Meeting Name of Committee: National Heart, Lung, and Blood Institute Special Emphasis Panel; qualifications and performance, and the Notice is hereby given of a change in Molecular Imaging Techniques to Detect competence of individual investigators, the meeting of the National Institute on High Risk Atherosclerotic Plaque. the disclosure of which would Aging Special Emphasis Panel, February Date: February 25, 2014. constitute a clearly unwarranted 27, 2014, 12:00 p.m. to February 27, Time: 10:00 a.m. to 3:00 p.m. invasion of personal privacy. Agenda: To review and evaluate contract 2014, 04:00 p.m., National Institute on Name of Committee: Board of Scientific proposals. Counselors, NHLBI. Aging, Gateway Building, 7201 Place: National Institutes of Health, 6701 Wisconsin Avenue, 2C212, Bethesda, Rockledge Drive, Room 7188, Bethesda, MD Date: February 25, 2014. MD 20814, which was published in the 20892–7924 (Telephone Conference Call). Time: 9:00 a.m. to 1:00 p.m. Federal Register on January 17, 2014, 79 Contact Person: Chang Sook Kim, Ph.D., Agenda: To review and evaluate personal FR 3212. Scientific Review Officer, Office of Scientific qualifications and performance, and The date of the meeting has been Review/DERA, National Heart, Lung, and competence of individual investigators. Blood Institute, 6701 Rockledge Drive, Room Place: National Institutes of Health, changed to February 28, 2014. The time Building 31, 5A05, 31 Center Drive, and location remains the same. The title 7188, Bethesda, MD 20892–7924, 301–435– 0287, [email protected]. Bethesda, MD 20892. of the meeting has been changed to the Contact Person: Robert S Balaban, Ph.D., National Institute on Aging Special Name of Committee: National Heart, Lung, Director, Division of Intramural Research, Emphasis Panel; Lung and Aging. The and Blood Institute Special Emphasis Panel; Laboratory Research Program, NHLBI, NIH, Review of Patient-Oriented Career Bldg 10, CRC, 4th Floor, Rm. 1581, 10 Center meeting is closed to the public. Development Awards. Drive, Bethesda, MD 20892, 301/496–3658. Dated: January 28, 2014. Date: February 27–28, 2014. Any interested person may file written Time: 8:30 a.m. to 2:00 p.m. Melanie J. Gray, comments with the committee by forwarding Agenda: To review and evaluate grant Program Analyst, Office of Federal Advisory the statement to the Contact Person listed on applications. Committee Policy. this notice. The statement should include the Place: Bethesda North Marriott Hotel and name, address, telephone number and when [FR Doc. 2014–02100 Filed 1–31–14; 8:45 am] Conference Center, Montgomery County applicable, the business or professional BILLING CODE 4140–01–P Conference Center Facility, 5701 Marinelli affiliation of the interested person. Road, North Bethesda, MD 20852. Information is also available on the Contact Person: Stephanie J Webb, Ph.D., Institute’s/Center’s home page: Scientific Review Officer, Office of Scientific DEPARTMENT OF HEALTH AND www.nhlbi.nih.gov/meetings/index.htm, Review/DERA, National Heart, Lung, and HUMAN SERVICES where an agenda and any additional Blood Institute, 6701 Rockledge Drive, Room information for the meeting will be posted 7196, Bethesda, MD 20892–7924, 301–435– National Institutes of Health when available. 0291, [email protected]. (Catalogue of Federal Domestic Assistance National Heart, Lung, and Blood (Catalogue of Federal Domestic Assistance Program Nos. 93.233, National Center for Program Nos. 93.233, National Center for Institute; Notice of Closed Meetings Sleep Disorders Research; 93.837, Heart and Sleep Disorders Research; 93.837, Heart and Vascular Diseases Research; 93.838, Lung Pursuant to section 10(d) of the Vascular Diseases Research; 93.838, Lung Diseases Research; 93.839, Blood Diseases Federal Advisory Committee Act, as Diseases Research; 93.839, Blood Diseases and Resources Research, National Institutes and Resources Research, National Institutes amended (5 U.S.C. App.), notice is of Health, HHS) hereby given of the following meetings. of Health, HHS) Dated: January 28, 2014. The meetings will be closed to the Dated: January 28, 2014. Michelle Trout, public in accordance with the Michelle Trout, provisions set forth in sections Program Analyst, Office of Federal Advisory Program Analyst, Office of Federal Advisory Committee Policy. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Committee Policy. as amended. The grant applications and [FR Doc. 2014–02105 Filed 1–31–14; 8:45 am] [FR Doc. 2014–02104 Filed 1–31–14; 8:45 am] contract proposals and the discussions BILLING CODE 4140–01–P could disclose confidential trade secrets BILLING CODE 4140–01–P or commercial property such as DEPARTMENT OF HEALTH AND patentable material, and personal DEPARTMENT OF HEALTH AND HUMAN SERVICES information concerning individuals HUMAN SERVICES associated with the grant applications or National Institutes of Health contract proposals, the disclosure of National Institutes of Health which would constitute a clearly National Cancer Institute; Amended National Heart, Lung, and Blood unwarranted invasion of personal Notice of Meeting privacy. Institute; Notice of Closed Meeting Name of Committee: Heart, Lung, and Pursuant to section 10(d) of the Notice is hereby given of a change in Blood Initial Review Group; Clinical Trials Federal Advisory Committee Act, as the meeting of the National Cancer Review Committee. amended (5 U.S.C. App.), notice is Advisory Board, February 26, 2014, Date: February 24–25, 2014. 06:00 p.m. to February 28, 2014, 12:00 Time: 8:00 a.m. to 5:00 p.m. hereby given of a meeting of the Board Agenda: To review and evaluate grant of Scientific Counselors, NHLBI. p.m., National Institutes of Health, applications. The meeting will be closed to the Building 31, 31 Center Drive, Bethesda, Place: Doubletree Hotel Bethesda public as indicated below in accordance MD 20892 which was published in the (Formerly Holiday Inn Select), 8120 with the provisions set forth in section Federal Register on January 22, 2014, 79 Wisconsin Avenue, Bethesda, MD 20814. 552b(c)(6), Title 5 U.S.C., as amended FR 3600.

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The meeting notice is amended to Dated: January 28, 2014. Place: Renaissance M Street Hotel, 1143 cancel the third day (February 28, 2014) Carolyn Baum, New Hampshire Avenue NW., Washington, of the meeting. The meeting is partially Program Analyst, Office of Federal Advisory DC 20037. closed to the public. Committee Policy. Contact Person: Michael M Sveda, Ph.D., Scientific Review Officer, Center for [FR Doc. 2014–02107 Filed 1–31–14; 8:45 am] Dated: January 28, 2014. Scientific Review, National Institutes of Melanie J. Gray, BILLING CODE 4140–01–P Health, 6701 Rockledge Drive, Room 1114, Program Analyst, Office of Federal Advisory MSC 7890, Bethesda, MD 20892, 301–435– Committee Policy. 3565, [email protected]. DEPARTMENT OF HEALTH AND [FR Doc. 2014–02101 Filed 1–31–14; 8:45 am] HUMAN SERVICES Name of Committee: Infectious Diseases BILLING CODE 4140–01–P and Microbiology Integrated Review Group; National Institutes of Health Clinical Research and Field Studies of Infectious Diseases Study Section. DEPARTMENT OF HEALTH AND Center For Scientific Review; Notice of Date: February 27, 2014. HUMAN SERVICES Closed Meetings Time: 8:00 a.m. to 6:00 p.m. Agenda: To review and evaluate grant National Institutes of Health Pursuant to section 10(d) of the applications. Federal Advisory Committee Act, as Place: Hyatt Regency Bethesda, One National Institute of Environmental amended (5 U.S.C. App.), notice is Bethesda Metro Center, 7400 Wisconsin Health Sciences; Notice of Closed hereby given of the following meetings. Avenue, Bethesda, MD 20814. Meeting The meetings will be closed to the Contact Person: Soheyla Saadi, Ph.D., public in accordance with the Scientific Review Officer, Center for Pursuant to section 10(d) of the provisions set forth in sections Scientific Review, National Institutes of Federal Advisory Committee Act, as 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Health, 6701 Rockledge Drive, Room 3211, amended (5 U.S.C. App.), notice is as amended. The grant applications and MSC 7808, Bethesda, MD 20892, 301–435– hereby given of the following meeting. the discussions could disclose 0903, [email protected]. The meeting will be closed to the confidential trade secrets or commercial Name of Committee: Center for Scientific public in accordance with the property such as patentable material, Review Special Emphasis Panel; Small provisions set forth in sections and personal information concerning Business: Psycho/Neuropathology, Lifespan 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., individuals associated with the grant Development, and Science Education. Date: February 27–28, 2014. as amended. The grant applications and applications, the disclosure of which Time: 10:00 a.m. to 5:00 p.m. the discussions could disclose would constitute a clearly unwarranted Agenda: To review and evaluate grant confidential trade secrets or commercial invasion of personal privacy. applications. property such as patentable material, Name of Committee: Center for Scientific Place: National Institutes of Health, 6701 and personal information concerning Review Special Emphasis Panel; Member Rockledge Drive, Bethesda, MD 20892. individuals associated with the grant Conflict: Integrative Neuroscience. Contact Person: John H Newman, Ph.D., applications, the disclosure of which Date: February 18, 2014. Scientific Review Officer, Center for would constitute a clearly unwarranted Time: 9:00 a.m. to 5:00 p.m. Scientific Review, National Institutes of invasion of personal privacy. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 3222, applications. MSC 7808, Bethesda, MD 20892, (301)267– Name of Committee: National Institute of Place: National Institutes of Health, 6701 9270, [email protected]. Environmental Health Sciences Special Rockledge Drive, Bethesda, MD 20892, Emphasis Panel; Review of Archived Sample (Virtual Meeting). Name of Committee: Center for Scientific Applications. Contact Person: Kirk Thompson, Ph.D., Review Special Emphasis Panel; PAR13–025 Date: February 27–28, 2014. Scientific Review Officer, Center for and PAR13–026: Selected Topics in Time: 8:00 a.m. to 3:00 p.m. Scientific Review, National Institutes of Transfusion Medicine. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 5184, Date: February 27–28, 2014. applications. MSC 7844, Bethesda, MD 20892, 301–435– Time: 11:00 a.m. to 5:00 p.m. Place: National Institute of Environmental 1242, [email protected]. Agenda: To review and evaluate grant Health Sciences; Keystone Building, 530 Name of Committee: Genes, Genomes, and applications. Davis Drive, Research Triangle Park, NC Genetics Integrated Review Group; Place: National Institutes of Health, 6701 27709, (Virtual Meeting). Prokaryotic Cell and Molecular Biology Rockledge Drive, Bethesda, MD 20892, Contact Person: Sally Eckert-Tilotta, Ph.D., Study Section. (Virtual Meeting). Scientific Review Administrator, National Date: February 20, 2014. Contact Person: Bukhtiar H Shah, DVM, Institute of Environmental Health Sciences, Time: 8:30 a.m. to 5:30 p.m. Ph.D., Scientific Review Officer, Center for Office of Program Operations, Scientific Agenda: To review and evaluate grant Scientific Review, National Institutes of Review Branch, Keystone Building, Room applications. Health, 6701 Rockledge Drive, Room 4120, 3076, 530 Davis Drive, MSC K3–03, P.O. Box Place: Renaissance Washington DC, MSC 7802, Bethesda, MD 20892, 301–806– 12233, Research Triangle Park, NC 27709, Dupont Circle, 1143 New Hampshire Avenue 7314, [email protected]. (919) 541–1446, [email protected]. NW., Washington, DC 20037. (Catalogue of Federal Domestic Assistance Contact Person: Dominique Lorang-Leins, (Catalogue of Federal Domestic Assistance Program Nos. 93.306, Comparative Medicine; Ph.D., Scientific Review Officer, National Program Nos. 93.115, Biometry and Risk 93.333, Clinical Research, 93.306, 93.333, Estimation—Health Risks from Institutes of Health, Center for Scientific 93.337, 93.393–93.396, 93.837–93.844, Environmental Exposures; 93.142, NIEHS Review, 6701 Rockledge Drive, Room 5108, 93.846–93.878, 93.892, 93.893, National Hazardous Waste Worker Health and Safety MSC 7766, Bethesda, MD 20892, Institutes of Health, HHS) Training; 93.143, NIEHS Superfund 301.326.9721, [email protected]. Hazardous Substances—Basic Research and Name of Committee: Genes, Genomes, and Dated: January 28, 2014. Education; 93.894, Resources and Manpower Genetics Integrated Review Group; Molecular Michelle Trout, Development in the Environmental Health Genetics A Study Section. Program Analyst, Office of Federal Advisory Sciences; 93.113, Biological Response to Date: February 27–28, 2014. Committee Policy. Environmental Health Hazards; 93.114, Time: 8:00 a.m. to 5:00 p.m. Applied Toxicological Research and Testing, Agenda: To review and evaluate grant [FR Doc. 2014–02106 Filed 1–31–14; 8:45 am] National Institutes of Health, HHS) applications. BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND Name of Committee: Biological Chemistry Name of Committee: National Institute of HUMAN SERVICES and Macromolecular Biophysics Integrated Mental Health Special Emphasis Panel; Review Group; Macromolecular Structure Service Conflicts. National Institutes of Health and Function B Study Section. Date: February 25, 2014. Date: February 27–28, 2014. Time: 1:00 p.m. to 3:30 p.m. Time: 8:00 a.m. to 5:00 p.m. Center for Scientific Review; Notice of Agenda: To review and evaluate grant Agenda: To review and evaluate grant Closed Meetings applications. applications. Pursuant to section 10(d) of the Place: Bethesda Marriott Suites, 6711 Place: National Institutes of Health, Federal Advisory Committee Act, as Democracy Boulevard, Bethesda, MD 20817. Neuroscience Center, 6001 Executive amended (5 U.S.C. App.), notice is Contact Person: C. L. Albert Wang, Ph.D., Boulevard, Rockville, MD 20852, (Telephone Conference Call). hereby given of the following meetings. Scientific Review Officer, Center for The meetings will be closed to the Scientific Review, National Institutes of Contact Person: Karen Gavin-Evans, Ph.D., Health, 6701 Rockledge Drive, Room 4146, Scientific Review Officer, Division of public in accordance with the MSC 7806, Bethesda, MD 20892, 301–435– provisions set forth in sections Extramural Activities, National Institute of 1016, [email protected]. Mental Health, NIH, Neuroscience Center, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Name of Committee: Center for Scientific 6001 Executive Boulevard, Room 6153, MSC as amended. The grant applications and Review Special Emphasis Panel; PAR–13– 9606, Bethesda, MD 20892, 301–451–2356, the discussions could disclose 231 Phenotyping Embryonic Lethal Knockout [email protected]. confidential trade secrets or commercial Mice (R01). property such as patentable material, Date: February 27–28, 2014. Name of Committee: National Institute of and personal information concerning Time: 8:00 a.m. to 5:00 p.m. Mental Health Special Emphasis Panel; individuals associated with the grant Agenda: To review and evaluate grant Pathway to Independence Awards–K99. applications, the disclosure of which applications. Date: February 26, 2014. would constitute a clearly unwarranted Place: National Institutes of Health, 6701 Time: 10:00 a.m. to 2:00 p.m. Rockledge Drive, Bethesda, MD 20892, invasion of personal privacy. Agenda: To review and evaluate grant (Virtual Meeting). applications. Name of Committee: Center for Scientific Contact Person: Maqsood A Wani, Ph.D., Place: National Institutes of Health, Review Special Emphasis Panel; Member Scientific Review Officer, Center for Neuroscience Center, 6001 Executive Conflict: Age-Related Functioning Across the Scientific Review, National Institutes of Boulevard, Rockville, MD 20852, (Telephone Life Cycle. Health, 6701 Rockledge Drive, Room 2114, Conference Call). Date: February 24, 2014. MSC 7814, Bethesda, MD 20892, 301–435– Time: 1:00 p.m. to 3:00 p.m. 2270, [email protected]. Contact Person: Megan Kinnane, Ph.D.; Scientific Review Officer, Division of Agenda: To review and evaluate grant (Catalogue of Federal Domestic Assistance Extramural Activities, National Institute of applications. Program Nos. 93.306, Comparative Medicine; Place: National Institutes of Health, 6701 93.333, Clinical Research, 93.306, 93.333, Mental Health, NIH, Neuroscience Center, Rockledge Drive, Bethesda, MD 20892, 93.337, 93.393–93.396, 93.837–93.844, 6001 Executive Blvd., Room 6148, MSC 9609, (Telephone Conference Call). 93.846–93.878, 93.892, 93.893, National Rockville, MD 20852–9609, 301–402–6807, Contact Person: Mary Ann Guadagno, Institutes of Health, HHS) [email protected]. Ph.D., Scientific Review Officer, Center for Scientific Review, National Institutes of Dated: January 27, 2014. Name of Committee: National Institute of Health, 6701 Rockledge Drive, Room 3170, Melanie J. Gray, Mental Health, Special Emphasis Panel; MSC 7770, Bethesda, MD 20892, (301) 451– Innovative Translational Treatment Research Program Analyst, Office of Federal Advisory 8011, [email protected]. Committee Policy. (PAR 11–177). Name of Committee: Genes, Genomes, and Date: February 26, 2014. [FR Doc. 2014–02109 Filed 1–31–14; 8:45 am] Genetics Integrated Review Group; Genetics Time: 1:30 p.m. to 5:00 p.m. of Health and Disease Study Section. BILLING CODE 4140–01–P Agenda: To review and evaluate grant Date: February 25–26, 2014. applications. Time: 8:30 a.m. to 1:30 p.m. Place: National Institutes of Health; Agenda: To review and evaluate grant DEPARTMENT OF HEALTH AND Neuroscience Center, 6001 Executive applications. HUMAN SERVICES Place: Hyatt Regency Bethesda, One Boulevard, Rockville, MD 20852, (Telephone Bethesda Metro Center, 7400 Wisconsin National Institutes of Health Conference Call). Avenue, Bethesda, MD 20814. Contact Person: David I. Sommers, Ph.D., Contact Person: Cheryl M Corsaro, Ph.D., National Institute of Mental Health; Scientific Review Officer, Division of Scientific Review Officer, Center for Notice of Closed Meetings Extramural Activities, National Institute of Scientific Review, National Institutes of Mental Health, National Institutes of Health, Health, 6701 Rockledge Drive, Room 2204, Pursuant to section 10(d) of the 6001 Executive Blvd., Room 6154, MSC 9606, MSC 7890, Bethesda, MD 20892, (301) 435– Federal Advisory Committee Act, as Bethesda, MD 20892–9606, 301–443–7861, 1045, [email protected]. amended (5 U.S.C. App.), notice is [email protected]. Name of Committee: Center for Scientific hereby given of the following meetings. (Catalogue of Federal Domestic Assistance Review Special Emphasis Panel; Member The meetings will be closed to the Conflict: Cell Biology. Program No. 93.242, Mental Health Research Date: February 26, 2014. public in accordance with the Grants, National Institutes of Health, HHS) provisions set forth in sections Time: 1:00 p.m. to 3:00 p.m. Dated: January 28, 2014. Agenda: To review and evaluate grant 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., applications. as amended. The grant applications and Carolyn A. Baum, Place: National Institutes of Health, 6701 the discussions could disclose Program Analyst, Office of Federal Advisory Rockledge Drive, Bethesda, MD 20892, confidential trade secrets or commercial Committee Policy. (Virtual Meeting). property such as patentable material, [FR Doc. 2014–02108 Filed 1–31–14; 8:45 am] Contact Person: Wallace Ip, Ph.D., and personal information concerning Scientific Review Officer, Center for BILLING CODE 4140–01–P Scientific Review, National Institutes of individuals associated with the grant Health, 6701 Rockledge Drive, Room 5128, applications, the disclosure of which MSC 7840, Bethesda, MD 20892, 301–435– would constitute a clearly unwarranted 1191, [email protected]. invasion of personal privacy.

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DEPARTMENT OF HEALTH AND This notice is being published less than 15 Coordination and Referral Branch, Division HUMAN SERVICES days prior to the meeting due to the timing of Extramural Activities, National Cancer limitations imposed by the review and Institute, NIH, 9609 Medical Center Drive, National Institutes of Health funding cycle. Room 7W556, Rockville, MD 20850, 240– Name of Committee: National Cancer 276–6411, [email protected]. Institute Special Emphasis Panel; NCI SPORE National Cancer Institute; Amended Name of Committee: National Cancer Notice of Meeting Review. Date: February 11–12, 2014. Institute Special Emphasis Panel; Advance Development of Informatics Technology. Notice is hereby given of a change in Time: 8:00 a.m. to 5:00 p.m. Date: April 21, 2014. the meeting of the National Cancer Agenda: To review and evaluate grant applications. Time: 9:00 a.m. to 3:00 p.m. Institute Special Emphasis Panel, April Place: Bethesda North Marriott Hotel & Agenda: To review and evaluate grant 01, 2014, 08:30 a.m. to April 01, 2014, Conference Center, 5701 Marinelli Road, applications. 06:00 p.m., Embassy Suites Alexandria, Bethesda, MD 20852. Place: National Cancer Institute Shady Contact Person: Wlodek Lopaczynski, MD, 1900 Diagonal Road, Alexandria, VA Grove, 9609 Medical Center Drive, Room 22314, which was published in the Ph.D., Scientific Review Officer, Research Programs Review Branch, Division of 7W030, Rockville, MD 20850 (Telephone Federal Register on January 14, 2014, 79 Conference Call). FR 2459. Extramural Activities, National Cancer Institute, NIH, 9609 Medical Center Drive, Contact Person: Marvin L. Salin, Ph.D., This notice is being amended to Room 7W608, Rockville, MD 20892, 240– Scientific Review Officer, Special Review change the start time to 8:00 a.m. The 276–6458, [email protected]. and Logistics Branch, Division of Extramural meeting is closed to the public. This notice is being published less than 15 Activities, National Cancer Institute, NIH, days prior to the meeting due to the timing Dated: January 28, 2014. 9609 Medical Center Drive, Room 7W236, limitations imposed by the review and Bethesda, MD 20892–8329, 240–276–6369, Melanie J. Gray, funding cycle. [email protected]. Program Analyst, Office of Federal Advisory Name of Committee: National Cancer Committee Policy. Institute Special Emphasis Panel; NCI Name of Committee: National Cancer [FR Doc. 2014–02102 Filed 1–31–14; 8:45 am] Program Project Meeting III (P01). Institute Special Emphasis Panel; Early Stage Development of Informatics Technology. BILLING CODE 4140–01–P Date: February 12–13, 2014. Time: 8:00 a.m. to 5:00 p.m. Date: April 22, 2014. Agenda: To review and evaluate grant Time: 9:00 a.m. to 3:00 p.m. DEPARTMENT OF HEALTH AND applications. Agenda: To review and evaluate grant HUMAN SERVICES Place: Bethesda North Marriott Hotel & applications. Conference Center, 5701 Marinelli Road, Place: National Cancer Institute Shady Bethesda, MD 20852. Grove, 9609 Medical Center Drive, Room National Institutes of Health Contact Person: Majed M. Hamawy, Ph.D., 7W030, Rockville, MD 20850 (Telephone Scientific Review Officer, Research Programs National Cancer Institute; Notice of Review Branch, Division of Extramural Conference Call). Closed Meetings Activities, National Cancer Institute, NIH, Contact Person: Marvin L. Salin, Ph.D., 9609 Medical Center Drive, Room 7W120, Scientific Review Officer, Special Review Pursuant to section 10(d) of the Bethesda, MD 20892, 240–276–6457, and Logistics Branch, Division of Extramural Federal Advisory Committee Act, as [email protected]. Activities, National Cancer Institute, NIH, amended (5 U.S.C. App.), notice is This notice is being published less than 15 9609 Medical Center Drive, Room 7W236, hereby given of the following meetings. days prior to the meeting due to the timing Bethesda, MD 20892–8329, 240–276–6369, The meetings will be closed to the limitations imposed by the review and [email protected]. funding cycle. public in accordance with the Information is also available on the Name of Committee: National Cancer provisions set forth in sections Institute’s/Center’s home page: http:// 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Institute Special Emphasis Panel; NCI Omnibus: Drug Development. deainfo.nci.nih.gov/advisory/sep/sep.htm, as amended. The grant applications and Date: March 19–20, 2014. where an agenda and any additional the discussions could disclose Time: 4:00 p.m. to 5:00 p.m. information for the meeting will be posted confidential trade secrets or commercial Agenda: To review and evaluate grant when available. property such as patentable material, applications. (Catalogue of Federal Domestic Assistance and personal information concerning Place: Bethesda North Marriott Hotel & Program Nos. 93.392, Cancer Construction; Conference Center, 5701 Marinelli Road, individuals associated with the grant 93.393, Cancer Cause and Prevention Bethesda, MD 20852. applications, the disclosure of which Research; 93.394, Cancer Detection and would constitute a clearly unwarranted Contact Person: Sonya Roberson, Ph.D., Scientific Review Officer, Resources and Diagnosis Research; 93.395, Cancer invasion of personal privacy. Training Review Branch, Division of Treatment Research; 93.396, Cancer Biology Name of Committee: National Cancer Extramural Activities, National Cancer Research; 93.397, Cancer Centers Support; Institute Special Emphasis Panel; NCI Institute, NIH, 9609 Medical Center, Room 93.398, Cancer Research Manpower; 93.399, Program Project Meeting I (P01). 7W116, Bethesda, MD 20892, 240–276–6347, Cancer Control, National Institutes of Health, Date: February 4–5, 2014. [email protected]. HHS) Time: 8:00 a.m. to 5:00 p.m. Name of Committee: National Cancer Dated: January 27, 2014. Agenda: To review and evaluate grant Institute Special Emphasis Panel; R13 applications. Review Applications. Melanie J. Gray, Place: Bethesda North Marriott Hotel & Date: March 27, 2014. Program Analyst, Office of Federal Advisory Conference Center, 5701 Marinelli Road, Time: 1:00 p.m. to 5:00 p.m. Committee Policy. Bethesda, MD 20852. Agenda: To review and evaluate grant [FR Doc. 2014–02110 Filed 1–31–14; 8:45 am] Contact Person: Shakeel Ahmad, Ph.D., applications. Scientific Review Officer, Research Programs Place: National Cancer Institute Shady BILLING CODE 4140–01–P Review Branch, Division of Extramural Grove, 9609 Medical Center Drive, Room Activities, National Cancer Institute, NIH, 7W556, Rockville, MD 20850 (Telephone 9609 Medical Center Drive, Room 7W122, Conference Call). Bethesda, MD 20892–8328, 240–276–6349, Contact Person: Bratin K. Saha, Ph.D., [email protected]. Scientific Review Officer, Program

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DEPARTMENT OF HOMELAND information you provide. Therefore, abstract: Primary: Individuals or SECURITY submitting this information makes it households. Form I–914 permits victims public. You may wish to consider of severe forms of trafficking and their U.S. Citizenship and Immigration limiting the amount of personal family members to demonstrate that Services information that you provide in any they qualify for temporary [OMB Control Number 1615–0099] voluntary submission you make to DHS. nonimmigrant status pursuant to the DHS may withhold information Victims of Trafficking and Violence Agency Information Collection provided in comments from public Protection Act of 2000 (VTVPA), and to Activities: Application for T viewing that it determines may impact receive temporary immigration benefits. Nonimmigrant Status, Form I–914, the privacy of an individual or is USCIS is revising Form I–914 to make Application for Immediate Family offensive. For additional information, statutory changes required by the Member of T–1 Recipient, Supplement please read the Privacy Act notice that William Wilberforce Trafficking Victims A, Declaration of Law Enforcement is available via the link in the footer of Protection Act of 2008 (TVPRA 2008) Officer for Victim of Trafficking in http://www.regulations.gov. and the Trafficking Victims Protection Persons, Supplement B; Revision of a Note: The address listed in this notice Act of 2013 (TVPRA 2013). Changes to Currently Approved Collection should only be used to submit comments the Form I–914 include: concerning this information collection. • Clarifying physical presence ACTION: 60-Day notice. Please do not submit requests for individual includes being allowed entry into the case status inquiries to this address. If you U.S. to participate in investigative or SUMMARY: The Department of Homeland are seeking information about the status of judicial processes associated with an act Security (DHS), U.S. Citizenship and your individual case, please check ‘‘My Case or perpetrator of trafficking (TVPRA Immigration Services (USCIS), invites Status’’ online at: https://egov.uscis.gov/cris/ 2013). the general public and other Federal Dashboard.do, or call the USCIS National • Customer Service Center at 1–800–375–5283. Implementing an exception from agencies to comment upon this compliance with law enforcement proposed revision of a currently Written comments and suggestions requests for assistance due to physical approved collection of information. In from the public and affected agencies or psychological trauma (TVPRA 2008). accordance with the Paperwork should address one or more of the • Implementing a new derivative Reduction Act (PRA) of 1995, the following four points: category for the adult or minor children information collection notice is (1) Evaluate whether the proposed of a derivative of a principal who face published in the Federal Register to collection of information is necessary a present danger of retaliation as a result obtain comments regarding the nature of for the proper performance of the of the principal’s escape from trafficking the information collection, the functions of the agency, including or cooperation with law enforcement categories of respondents, the estimated whether the information will have (TVPRA 2013). burden (i.e. the time, effort, and practical utility; • The requirement of a personal (2) Evaluate the accuracy of the resources used by the respondents to statement, including A numbers, agency’s estimate of the burden of the respond), the estimated cost to the passports and travel documents only if proposed collection of information, respondent, and the actual information the applicant has them, ensuring including the validity of the collection instruments. address changes are sent directly to the DATES: Comments are encouraged and methodology and assumptions used; (3) Enhance the quality, utility, and Vermont Service Center in compliance will be accepted for 60 days until April with the Safe Address procedure to 4, 2014. clarity of the information to be collected; and protect victims, explain the principal ADDRESSES: All submissions received (4) Minimize the burden of the does not need to file a USCIS Form I– must include OMB Control Number collection of information on those who 765, Application for Employment 1615–0099 in the subject box, the are to respond, including through the Authorization Document, and using the agency name and Docket ID USCIS– use of appropriate automated, name as it appears on the birth 2006–0059. To avoid duplicate electronic, mechanical, or other certificate (these are not new submissions, please use only one of the technological collection techniques or collections, merely describing what is following methods to submit comments: needed in plain language), and other forms of information technology, • (1) Online. Submit comments via the e.g., permitting electronic submission of Adding language to clarify the role Federal eRulemaking Portal Web site at responses. of law enforcement in the process, in www.regulations.gov under e-Docket ID order to speak to their main concerns number USCIS–2006–0059; Overview of this Information Collection and questions in plain language. (2) Email. Submit comments to (1) Type of Information Collection: (5) An estimate of the total number of [email protected]; or Revision of a Currently Approved respondents and the amount of time (3) Mail. Submit written comments to Collection. estimated for an average respondent to DHS, USCIS, Office of Policy and (2) Title of the Form/Collection: respond: Form I–914—926 responses at Strategy, Chief, Regulatory Coordination Application for T Nonimmigrant Status, 2 hours and 15 minutes (2.25) per Division, 20 Massachusetts Avenue Application for Immediate Family response; Supplement A—795 NW., Washington, DC 20529–2140. Member of T–1 Recipient, Declaration of responses at 1 hour per response; SUPPLEMENTARY INFORMATION: Law Enforcement Officer for Victim of Supplement B—200 responses at 3 Trafficking in Persons. hours and 30 minutes (3.50) per Comments (3) Agency form number, if any, and response. Regardless of the method used for the applicable component of the DHS (6) An estimate of the total public submitting comments or material, all sponsoring the collection: Form I–914; burden (in hours) associated with the submissions will be posted, without Form I–914, Supplement A, and; Form collection: 4,711 annual burden hours. change, to the Federal eRulemaking I–914, Supplement B; USCIS. If you need a copy of the information Portal at http://www.regulations.gov, (4) Affected public who will be asked collection instrument with instructions, and will include any personal or required to respond, as well as a brief or additional information, please visit

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the Federal eRulemaking Portal site at: the identity of the ports where filings indefinite period regardless of the http://www.regulations.gov. are likely to occur. Customs-Trade Partnership Against We may also be contacted at: USCIS, FOR FURTHER INFORMATION CONTACT: For Terrorism (C–TPAT) status of an Office of Policy and Strategy, Regulatory policy related questions, contact importer self-filer or a customs broker. Coordination Division, 20 Stephen Hilsen, Director, Business For the convenience of the public, a Massachusetts Avenue NW., Transformation, ACE Business Office, chronological listing of Federal Register Washington, DC 20529–2140, Office of International Trade, at publications detailing ACE test Telephone number 202–272–8377. [email protected]. For developments is set forth below in Section VII, entitled, ‘‘Development of Dated: January 28, 2014. technical questions, contact Susan ACE Prototypes’’. The procedures and Laura Dawkins, Maskell, Client Representative Branch, ACE Business Office, Office of criteria applicable to participation in the Chief, Regulatory Coordination Division, International Trade, at susan.c.maskell@ prior ACE tests remain in effect unless Office of Policy and Strategy, U.S. Citizenship otherwise explicitly changed by this or and Immigration Services, Department of cbp.dhs.gov. Homeland Security. SUPPLEMENTARY INFORMATION: subsequent notices published in the Federal Register. [FR Doc. 2014–02126 Filed 1–31–14; 8:45 am] Background BILLING CODE 9111–97–P II. Authorization for the Test I. The National Customs Automation Program The Customs Modernization Act provides the Commissioner of CBP with DEPARTMENT OF HOMELAND The National Customs Automation authority to conduct limited test SECURITY Program (NCAP) was established in programs or procedures designed to Subtitle B of Title VI—Customs U.S. Customs and Border Protection evaluate planned components of the Modernization, in the North American NCAP. The test described in this notice Free Trade Agreement Implementation Modification of National Customs is authorized pursuant to § 101.9(b) of Act (Pub. L. 103–182, 107 Stat. 2057, Automation Program (NCAP) Test title 19 of the Code of Federal 2170, December 8, 1993) (Customs Concerning Automated Commercial Regulations (19 CFR 101.9(b)), which Modernization Act). See 19 U.S.C. 1411. Environment (ACE) Cargo Release for provides for the testing of NCAP Through NCAP, the initial thrust of Ocean and Rail Carriers programs or procedures. See Treasury customs modernization was on trade Decision (T.D.) 95–21. AGENCY: U.S. Customs and Border compliance and the development of the Protection, Department of Homeland Automated Commercial Environment III. Expansion of ACE Cargo Release Security. (ACE), the planned successor to the Test to Ocean and Rail Modes of Automated Commercial System (ACS). Transportation ACTION: General notice. ACE is an automated and electronic This document is announcing CBP’s SUMMARY: This document announces system for commercial trade processing plan to expand the ACE Cargo Release U.S. Customs and Border Protection’s which is intended to streamline test which allows for the filing (CBP’s) plan to modify the National business processes, facilitate growth in capabilities by importers and customs Customs Automation Program (NCAP) trade, ensure cargo security, and foster brokers for cargo transported by air to test concerning Cargo Release participation in global commerce, while include filing capabilities by importers functionality in the Automated ensuring compliance with U.S. laws and and customs brokers for cargo Commercial Environment (ACE). regulations and reducing costs for U.S. transported by ocean and rail. Customs and Border Protection (CBP) Originally, the test was known as the Eligibility Requirements Simplified Entry Test because the test and all of its communities of interest. simplified the entry process by reducing The ability to meet these objectives To be eligible to apply for this test, the number of data elements required to depends on successfully modernizing the applicant must: (1) Be a self-filing obtain release for cargo transported by CBP’s business functions and the importer who has the ability to file ACE air. The test continues to be modified to information technology that supports Entry Summaries certified for cargo provide more capabilities to test those functions. release or a broker who has the ability participants allowing CBP to deliver CBP’s modernization efforts are to file ACE Entry Summaries certified enhanced functionality. This notice accomplished through phased releases for cargo release; or (2) have evinced the modifies the ACE Cargo Release test to of ACE component functionality intent to file entry summaries in ACE. include expansion to the ocean and rail designed to replace a specific legacy Parties seeking to participate in this modes of transportation. This notice ACS function. Each release will begin test must use a software package that invites more participants to join the test. with a test and, if the test is successful, has completed Automated Broker will end with implementation of the Interface (ABI) certification testing for DATES: The ACE Cargo Release test functionality through the promulgation ACE and offers the simplified entry modifications set forth in this document of regulations governing the new ACE message set prior to transmitting data are effective no earlier than January 5, feature and the retirement of the legacy under the test. See the General Notice of 2014. The test will run until ACS function. August 26, 2008 (73 FR 50337) for a approximately November 1, 2015. The ACE Cargo Release test was complete discussion on procedures for ADDRESSES: Comments or questions previously known as the Simplified obtaining an ACE Portal Account. concerning this notice and indication of Entry Test because the test simplified Importers not self-filing must be sure interest in participation in ACE Cargo the entry process by reducing the their broker has the capability to file Release should be submitted, via email, number of data elements required to entry summaries in ACE. to Susan Maskell at susan.c.maskell@ obtain release for cargo transported by cbp.dhs.gov. In the subject line of your air. Through phased releases of ACE Document Image System (DIS) email, please use, ‘‘Comment on ACE component functionality this test has Parties who file entry summaries in Cargo Release’’. The body of the email been expanded to allow all eligible ACE are allowed to submit specified should include information regarding participants to join the test for an CBP and Partner Government Agency

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(PGA) documents via a CBP-approved shipments, entry on cargo which has manner as when they are used for entry Electronic Data Interchange (EDI). A been moved by in-bond from the first filing on the CBP Form 3461. Data current listing of those documents may U.S. port of unlading, entry for a full elements (2) through (5) and (13) be found on the following Web site: manifested bill quantity, and entries through (15) are defined in accordance http://www.cbp.gov/xp/cgov/trade/ requiring Partner Government Agency with the provisions of 19 CFR 149.3. automated/modernization/ace_edi_ (PGA) information, if the specified The ACE Cargo Release Data set may messages/catair_main/abi_catair/ entries are covered in the be filed at any time prior to arrival of catair_chapters/document_imaging_igs/ Implementation Guidelines. See http:// the cargo in the United States port of . www.cbp.gov/xp/cgov/trade/automated/ arrival with the intent to unlade. This DIS provides for the storage of all modernization/ace_edi_messages/ data fulfills merchandise entry submitted documents in a secure catair_main/abi_catair/deployment_b/. requirements and allows for earlier centralized location for the maintenance These new capabilities include release decisions and more certainty for of associations with ACE entry summary functionality specific to the filing and the importer in determining the logistics transactions. processing of type ‘‘01’’ (consumption) of cargo delivery. See 78 FR 44142 (July 23, 2013). and type ‘‘11’’ (informal) commercial Functionality Test Participation Selection Criteria entries for ocean and rail modes of transportation. The ACE Cargo Release Upon receipt of the ACE Cargo The ACE Cargo Release test is open to filing capabilities serve to assist the Release data, CBP will process the all importers and customs brokers filing importer in completion of entry as submission and will subsequently ACE Entry Summaries for cargo required by the provisions of 19 U.S.C. transmit its cargo release decision to the transported in the ocean and rail modes. 1484(a)(1)(B). filer. If a subsequent submission is Please note that participants must meet submitted to CBP, CBP’s decision the eligibility requirements mentioned Data Elements To Be Filed regarding the original submission is no above and set forth in 76 FR 69755 In lieu of filing CBP Form 3461 data, longer controlling. (November 9, 2011). the importer or broker acting on behalf The merchandise will then be CBP will endeavor to accept all new of the importer must file the following considered to be entered upon its arrival eligible applicants on a first come, first 12 data elements (known as the ACE in the port with the intent to unlade, as served basis; however, if the volume of Cargo Release Data set) with CBP: provided by current 19 CFR 141.68(e). eligible applicants exceeds CBP’s (1) Importer of Record Number. administrative capabilities, CBP will (2) Buyer name and address. Test Duration reserve the right to select eligible (3) Buyer Employer Identification This ACE Cargo Release test participants in order to achieve a Number (consignee number). modifications set forth in this document diverse pool in accordance with the (4) Seller name and address. are effective no earlier than January 5, selection standards set forth in 76 FR (5) Manufacturer/supplier name and 2014. The test will run until 69755. address. approximately November 1, 2015, and is Any party seeking to participate in (6) HTS 10-digit number. open to type ‘‘01’’ (consumption) and this test must provide CBP, in their (7) Country of origin. type ‘‘11’’ (informal) commercial entries request to participate, their filer code (8) Bill of lading/house air waybill filed in the ocean and rail modes of and the port(s) at which they are number. transportation at specified ports. interested in filing ACE Cargo Release (9) Bill of lading issuer code. (10) Entry number. Expansion to other modes will be transaction data. At this time, ACE (11) Entry type. announced via a separate Federal Cargo Release data may be submitted (12) Estimated shipment value. Register notice. only for entries filed at certain ports. A In the ocean and rail environment, the IV. Misconduct under the Test current listing of those ports may be entry filer, at his option, may also found on the following Web site: http:// provide the additional three (3) data The terms for misconduct under the www.cbp.gov/linkhandler/cgov/trade/ elements: ACE Cargo Release Test set forth in 78 automated/modernization/whats_new/ (13) Ship to party name and address FR 66039 (November 4, 2013) continue info_notice_trade.ctt/info_notice_ (optional). to apply and are now expanded to trade.pdf. CBP may expand to (14) Consolidator name and address include importers and customs brokers additional ports in the future. (optional). filing ACE Entry Summaries for cargo Any changes and/or additions to the (15) Container stuffing location transported in the ocean and rail modes. ports that are part of the ACE Cargo (optional). V. Previous Notices Release test will be posted to this page. To enable enhanced functionality in See http://www.cbp.gov/xp/cgov/trade/ ACE Cargo Release, the entry filer may All requirements and aspects of the trade_transformation/simplified_entry/. provide an additional three (3) data ACE test discussed in previous notices are hereby incorporated by reference Filing Capabilities elements in certain situations: (16) Port of Entry (if an in-bond into this notice and continue to be The filing capabilities for the ACE number is provided in the entry applicable, unless changed by this Cargo Release test set forth in 78 FR submission, the planned port of entry notice. 66039 (November 4, 2013) continue to must also be provided). VI. Paperwork Reduction Act apply and are now expanded to include (17) In-Bond (if applicable). importers and customs brokers filing (18) Bill Quantity (if bill of lading The collection of information ACE Entry Summaries for cargo quantity is specified in the entry, it contained in this ACE Cargo Release test transported in the ocean and rail modes. becomes the entered and released have been approved by the Office of The expansion of ACE Cargo Release quantity for that bill. If the bill quantity Management and Budget (OMB) in filing capabilities for ocean and rail is not specified, full bill quantity will be accordance with the requirements of the modes of transportation will allow for entered and released for that bill). Paperwork Reduction Act (44 U.S.C. automated corrections and Data element (1) and data elements (6) 3507) and assigned OMB number 1651– cancellations, split shipments, partial through (12) are defined in the same 0024.

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An agency may not conduct or Commercial Environment (ACE) DATES: To ensure that we are able to sponsor, and a person is not required to Document Image System (DIS) and consider your comments on this IC, we respond to, a collection of information Simplified Entry (SE): 78 FR 44142 (July must receive them by April 4, 2014. unless it displays a valid control 23, 2013). ADDRESSES: Send your comments on the • number assigned by OMB. Modification of Two National IC to the Service Information Collection Customs Automation Program (NCAP) VII. Development of ACE Prototypes Clearance Officer, U.S. Fish and Tests Concerning Automated Wildlife Service, MS 2042–PDM, 4401 A chronological listing of Federal Commercial Environment (ACE) North Fairfax Drive, Arlington, VA Register publications detailing ACE test Document Image System (DIS) and 22203 (mail); or [email protected] developments is set forth below. Simplified Entry (SE); Correction: 78 FR • (email). Please include ‘‘1018–NFHAP’’ ACE Portal Accounts and 53466 (August 29, 2013). in the subject line of your comments. Subsequent Revision Notices: 67 FR • Modification of NCAP Test FOR FURTHER INFORMATION CONTACT: To 21800 (May 1, 2002); 70 FR 5199 Concerning Automated Commercial request additional information about (February 1, 2005); 69 FR 5360 and 69 Environment (ACE) Cargo Release this IC, contact Hope Grey at FR 5362 (February 4, 2004); 69 FR (formerly known as Simplified Entry): [email protected] (email) or 703–358– 54302 (September 8, 2004). 78 FR 66039 (November 4, 2013). • ACE System of Records Notice: 71 • Post-Summary Corrections to Entry 2482 (telephone). FR 3109 (January 19, 2006). Summaries Filed in ACE Pursuant to the SUPPLEMENTARY INFORMATION: • Terms/Conditions for Access to the ESAR IV Test: Modifications and I. Abstract ACE Portal and Subsequent Revisions: Clarifications: 78 FR 69434 (November 72 FR 27632 (May 16, 2007); 73 FR 19, 2013). We receive annual appropriations to 38464 (July 7, 2008). • National Customs Automation implement the National Fish Habitat • ACE Non-Portal Accounts and Program (NCAP) Test Concerning the Action Plan. We use these funds to: • Related Notice: 70 FR 61466 (October Submission of Certain Data Required by Support our participation in the 24, 2005); 71 FR 15756 (March 29, the Environmental Protection Agency National Fish Habitat Board and and the Food Safety and Inspection activities of the Board. 2006). • • ACE Entry Summary, Accounts and Service Using the Partner Government Support Action Plan coordination Revenue (ESAR I) Capabilities: 72 FR Agency Message Set Through the and leadership at the Regional level. • 59105 (October 18, 2007). Automated Commercial Environment Implement habitat-based cost- • ACE Entry Summary, Accounts and (ACE): 78 FR 75931 (December 13, shared projects. Revenue (ESAR II) Capabilities: 73 FR 2013). Funds used to implement habitat- based cost-shared projects (project 50337 (August 26, 2008); 74 FR 9826 Date: January 28, 2014. (March 6, 2009). funds) are subject to reallocation each • Richard F. DiNucci, year. The Director allocates the available ACE Entry Summary, Accounts and Acting Assistant Commissioner, Office of Revenue (ESAR III) Capabilities: 74 FR project funding among Fish Habitat International Trade. Partnerships (FHPs) consistent with the 69129 (December 30, 2009). [FR Doc. 2014–02218 Filed 1–31–14; 8:45 am] • ACE Entry Summary, Accounts and goals and strategies of the National Fish BILLING CODE 9111–14–P Revenue (ESAR IV) Capabilities: 76 FR Habitat Board. In FY 2014, we will 37136 (June 24, 2011). implement a competitive, performance- • Post-Entry Amendment (PEA) based process to allocate project funds. Processing Test: 76 FR 37136 (June 24, DEPARTMENT OF THE INTERIOR We will distribute project funds among FHPs in two categories: (1) Stable 2011). Fish and Wildlife Service • ACE Announcement of a New Start operational support and (2) competitive, Date for the National Customs [FW–HQ–FHC–2014–N019; performance-based funds to encourage Automation Program Test of Automated FXFR133409NFHP0–134–FF09F1000] strategic conservation delivery. To Manifest Capabilities for Ocean and Rail determine which projects receive Proposed Information Collection; Carriers: 76 FR 42721 (July 19, 2011). funding, we will collect the following National Fish Habitat Action Plan • ACE Simplified Entry: 76 FR 69755 information: Project Funding Process (November 9, 2011). Justification for Stable Operational • National Customs Automation AGENCY: Fish and Wildlife Service, Support ($75,000 per year). To be Program (NCAP) Tests Concerning Interior. eligible to receive stable operational Automated Commercial Environment ACTION: Notice; request for comments. support, FHPs must submit a (ACE) Document Image System (DIS): 77 justification that provides an overview FR 20835 (April 6, 2012). SUMMARY: We (U.S. Fish and Wildlife of all projects and activities over the • National Customs Automation Service, Service) will ask the Office of previous 3 years and anticipated Program (NCAP) Tests Concerning Management and Budget (OMB) to projects and activities over the next 3 Automated Commercial Environment approve the information collection (IC) years. The justification should concisely (ACE) Simplified Entry: Modification of described below. As required by the describe these projects and activities as Participant Selection Criteria and Paperwork Reduction Act of 1995 and well as how these projects and activities Application Process: 77 FR 48527 as part of our continuing efforts to (both individually and collectively) (August 14, 2012). reduce paperwork and respondent have contributed, or are expected to • Modification of NCAP Test burden, we invite the general public and contribute, to achieving FHP goals and Regarding Reconciliation for Filing other Federal agencies to take this leverage partner resources and Certain Post-Importation Preferential opportunity to comment on this IC. We capabilities. Tariff Treatment Claims under Certain may not conduct or sponsor and a Accomplishments Report and Work FTAs: 78 FR 27984 (May 13, 2013). person is not required to respond to a Plan. To compete for performance-based • Modification of Two National collection of information unless it funds, FHPs must submit: Customs Automation Program (NCAP) displays a currently valid OMB control • Accomplishments Report that Tests Concerning Automated number. provides a detailed description of all

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projects and activities of the FHP over performance and financial reports that II. Data the previous 3 years. contain information necessary for us to • Work Plan consisting of a track costs and accomplishments. OMB Control Number: 1018–XXXX. prioritized list of new or ongoing habitat Performance reports will include: This is a new collection. projects over the next year. The work • A comparison of actual Title: National Fish Habitat Action plan will include, but not be limited to, accomplishments to the goals and Plan Project Funding. project title, funds requested, objectives established for the reporting Service Form Number: None. anticipated partner contributions, period, the results/findings, or both; Type of Request: Request for a new measurable goals and objectives, and • proposed conservation actions that will If the goals and objectives were not OMB Control Number. produce desired conservation outcomes met, the reasons why, including analysis and explanation of cost Description of Respondents: Fish and achieve project goals and objectives. Habitat Partnerships recognized by the Application. FHPs will solicit overruns or high unit costs compared to the benefit received to reach an National Fish Habitat Board; proposals for Service funding. individuals; businesses and Applicants must submit an application objective; and • organizations; and State, local, and that describes in substantial detail Performance metrics, such as the tribal governments. project locations, benefits, funding, and number of stream miles or acres of other characteristics. riparian habitat restored or protected by Respondent’s Obligation: Required to Performance and Financial Reports. the project, the number of fish passage obtain or retain a benefit. Persons or entities receiving project barriers removed, and the aquatic Frequency of Collection: Annually or funding must submit annual species benefitted by the project. on occasion.

Completion Number of Number of time per Total annual Activity respondents responses response burden hours (hours)

Justification for Stable Operational Support ...... 18 18 5 90 Accomplishments Report and Work Plan ...... 18 18 20 360 Application ...... 100 100 20 2,000 Financial and Performance Reports ...... 100 100 20 2,000

TOTALS ...... 236 236 ...... 4,450

Estimated Annual Nonhour Burden cannot guarantee that we will be able to SUPPLEMENTARY INFORMATION: Under Cost: None. do so. section 11 of the Indian Gaming III. Comments Dated: January 28, 2014. Regulatory Act (IGRA), Public Law 100– Tina A. Campbell, 497, 25 U.S.C. 2701 et seq., the We invite comments concerning this Chief, Division of Policy and Directives Secretary of the Interior shall publish in information collection on: Management, U.S. Fish and Wildlife Service. the Federal Register notice of approved • Whether or not the collection of [FR Doc. 2014–02127 Filed 1–31–14; 8:45 am] Tribal-State compacts for the purpose of information is necessary, including BILLING CODE 4310–55–P engaging in Class III gaming activities whether or not the information will on Indian lands. The Compact between have practical utility; the Commonwealth of Massachusetts • The accuracy of our estimate of the DEPARTMENT OF THE INTERIOR (State) and the Mashpee Wampanoag burden for this collection of provides for limited annual payments to information; Bureau of Indian Affairs the State for statewide and regional • Ways to enhance the quality, utility, exclusivity. The term of the compact is [DR.5B711.IA000814] and clarity of the information to be 20 years from the date of the facility’s collected; and Indian Gaming opening with an automatic renewal of • Ways to minimize the burden of the 20 years without modifications. The collection of information on AGENCY: Bureau of Indian Affairs, Secretary took no action on the Compact respondents. Interior. within 45 days of its submission by the Comments that you submit in ACTION: Notice of Tribal-State Class III Tribe and the State. Therefore, the response to this notice are a matter of Gaming Compact taking effect. compact is considered to have been public record. We will include or approved, but only to the extent that the SUMMARY: This notice publishes the summarize each comment in our request Compact is consistent with IGRA. See Class III Gaming Compact between the to OMB to approve this IC. Before 25 U.S.C. 2710(d)(8)(C). including your address, phone number, Mashpee Wampanoag Tribe and the Dated: January 24, 2014. email address, or other personal Commonwealth of Massachusetts taking identifying information in your effect. Kevin K. Washburn, comment, you should be aware that DATES: Effective Date: February 3, 2014. Assistant Secretary—Indian Affairs. your entire comment, including your FOR FURTHER INFORMATION CONTACT: [FR Doc. 2014–02183 Filed 1–31–14; 8:45 am] personal identifying information, may Paula L. Hart, Director, Office of Indian BILLING CODE 4310–4N–P be made publicly available at any time. Gaming, Office of the Deputy Assistant While you can ask us in your comment Secretary—Policy and Economic to withhold your personal identifying Development, Washington, DC 20240, information from public review, we (202) 219–4066.

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DEPARTMENT OF THE INTERIOR copy by contacting the Superintendent, Department of the Interior collections Attn: Division of Project Management, under review by OMB. National Park Service Yosemite National Park, P.O. Box 700– SUPPLEMENTARY INFORMATION: [NPS–PWR–PWRO–14640; W, 5083 Foresta Road, El Portal, CA Title: 30 CFR Part 556, Leasing of PX.DYOSE1318.00.1] 95318 or via telephone request at (209) Sulphur or Oil and Gas in the OCS; 30 379–1202. CFR Part 550, Subpart J, Pipelines and Notice of Availability of Record of Signed: December 16, 2013. Pipeline Rights-of-Way; and 30 CFR Part Decision for Restoration of Mariposa Christine S. Lehnertz, 560 OCS Oil and Gas Leasing. Grove of Giant Sequois, Yosemite Regional Director, Pacific West Region. Forms: BOEM–0150, 0151, 0152, National Park, California 2028, 2028A, 2030. [FR Doc. 2014–02157 Filed 1–31–14; 8:45 am] Abstract: The Outer Continental Shelf AGENCY: National Park Service, Interior. BILLING CODE 4312–FF–P (OCS) Lands Act, as amended (43 U.S.C. ACTION: Notice of Availability of Record 1331 et seq., and 43 U.S.C. 1801 et seq.), of Decision. DEPARTMENT OF THE INTERIOR authorizes the Secretary of the Interior SUMMARY: Pursuant to § 102(2)(C) of the to prescribe rules and regulations to National Environmental Policy Act of Bureau of Ocean Energy Management administer leasing of the OCS. Such 1969 (Pub. L. 91–190, as amended) and rules and regulations will apply to all the regulations promulgated by the [OMB Number 1010–0006; MMAA104000] operations conducted under a lease. Council on Environmental Quality (40 Operations on the OCS must preserve, CFR part 1505.2), the Department of the Information Collection: Leasing of protect, and develop oil and natural gas Interior, National Park Service (NPS), Sulphur or Oil and Gas in the Outer resources in a manner that is consistent has prepared and approved a Record of Continental Shelf and Pipeline Rights with the need to make such resources Decision for the Final Environmental of Way; Submitted for OMB Review; available to meet the Nation’s energy Impact Statement (Final EIS) for the Comment Request needs as rapidly as possible; balance Restoration Plan for Mariposa Grove of orderly energy resource development ACTION: 30-day notice. Giant Sequoias. The requisite no-action with protection of human, marine, and ‘‘wait period’’ was initiated on SUMMARY: To comply with the coastal environments; ensure the public November 1, 2013, with the Paperwork Reduction Act of 1995 a fair and equitable return on the Environmental Protection Agency’s (PRA), the Bureau of Ocean Energy resources of the OCS; and preserve and Federal Register notice of the filing of Management (BOEM) is notifying the maintain free enterprise competition. the Final EIS. public that we have submitted an Also, the Energy Policy and Decision: The NPS has selected information collection request (ICR) to Conservation Act of 1975 (EPCA) Alternative 2 (identified as ‘‘preferred’’ the Office of Management and Budget prohibits certain lease bidding in the Final EIS) for implementation as (OMB) for review and approval. The arrangements (42 U.S.C. 6213(c)). the approved Restoration Plan for information collection request (ICR) The Independent Offices Mariposa Grove. Key components of the concerns the paperwork requirements in Appropriations Act (31 U.S.C. 9701), the approved plan are as follows: (1) The the regulations under 30 CFR Part 556, Omnibus Appropriations Bill (Pub. L. existing parking lot in the lower Leasing of Sulphur or Oil and Gas in the 104–133, 110 Stat. 1321, April 26, Mariposa Grove area will be relocated to OCS; 30 CFR Part 550, Subpart J, 1996), and Office of Management and a visitor contact area at the South Pipelines and Pipeline Rights-of-Way; Budget (OMB) Circular A–25 authorize Entrance to the park, about two miles and 30 CFR Part 560, OCS Oil and Gas Federal agencies to recover the full cost from the Grove; (2) parking will be Leasing. This notice provides the public of services that provide special benefits. consolidated into a 295-space parking a second opportunity to comment on the Under the Department of the Interior’s and transit hub, with a park shuttle paperwork burden of this collection. (DOI) implementing policy, the Bureau available to transport visitors from the of Ocean Energy Management (BOEM) is DATES: Submit written comments by South Entrance to the lower Grove area; required to charge the full cost for March 5, 2014. (3) a hiking trail to the Grove and new services that provide special benefits or accessible trails within the lower Grove ADDRESSES: Submit comments on this privileges to an identifiable non-Federal area and near the Grizzly Giant tree will ICR to the Desk Officer for the recipient above and beyond those that be constructed; (4) adverse effects to Department of the Interior at OMB– accrue to the public at large. _ cultural resources will be ameliorated OIRA at (202) 395–5806 (fax) or OIRA Instruments of transfer of a lease or according to a Memorandum of [email protected] (email). Please interest are subject to cost recovery, and Agreement executed with the State provide a copy of your comments to the BOEM regulations specify the filing fee Historic Preservation Officer; and (5) BOEM Information Collection Clearance for these transfer applications. ecological restoration actions will be Officer, Arlene Bajusz, Bureau of Ocean This notice concerns the reporting undertaken to improve hydrologic Energy Management, 381 Elden Street, and recordkeeping requirements of flows, water infiltration, and reduce HM–3127, Herndon, Virginia 20170 BOEM regulations at 30 CFR 556, erosion. (mail) or [email protected] Leasing of Sulphur or Oil and Gas in the Three other alternatives were (email). Please reference ICR 1010–0006 OCS; 30 CFR 550, Subpart J, Pipelines evaluated, the full range of foreseeable in your comment and include your and Pipeline Rights-of-Way; 30 CFR environmental consequences was name and return address. 560, OCS Oil and Gas Leasing; as well assessed, and appropriate mitigation FOR FURTHER INFORMATION CONTACT: as the related Notices to Lessees and measures were identified. Alternative 2 Arlene Bajusz, Office of Policy, Operators (NTLs) that clarify and (selected for implementation) was Regulations, and Analysis at provide additional guidance on some deemed to be the ‘‘environmentally [email protected] (email) or (703) aspects of these regulations. This ICR preferred’’ course of action. 787–1025 (phone). You may review the also concerns the use of the following Interested parties desiring to review ICR online at http://www.reginfo.gov. forms to process bonds, transfer interest the Record of Decision may obtain a Follow the instructions to review in leases, and file relinquishments:

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• BOEM–0150, Assignment of Record to hold leases in the OCS, assign a regulations (43 CFR part 2 and 30 CFR Title Interest in Federal OCS Oil and qualification number to avoid 556.10(d)). No items of a sensitive Gas Lease, respondent submission of information nature are collected. Responses are • BOEM–0151, Assignment of already on file, develop the semiannual mandatory or are required to obtain a Operating Rights Interest in Federal List of Restricted Joint Bidders, ensure benefit. OCS Oil and Gas Lease, the qualification of transferees and track Frequency: On occasion or annual. • BOEM–0152, Relinquishment of operators on leaseholds, document that Federal OCS Oil and Gas Lease, a leasehold or geographical subdivision Description of Respondents: • BOEM–2028, OCS Mineral Lessee’s has been surrendered by the record title Respondents comprise Federal oil, gas, and Operator’s Bond, holder, and ensure that adequate funds or sulphur lessees and/or operators. • BOEM–2028A, OCS Mineral are secured to complete existing and Estimated Reporting and Lessee’s and Operator’s Supplemental future bond obligations. Recordkeeping Hour Burden: We expect Bond, We will protect information from the annual reporting burden estimate for • BOEM–2030, OCS Pipeline Right- respondents considered proprietary this collection to be 17,882 hours. The of-Way Grant Bond. according to section 26 of the OCS following table details the individual BOEM uses the information collected Lands Act, the Freedom of Information components and respective hour burden to determine if applicants are qualified Act (5 U.S.C. 552) and its implementing estimates of this ICR.

Non-Hour Cost Burdens ** Average Citation 30 CFR part 556 and NTLs Reporting requirement * number of Annual Hour burden annual burden hours responses

All Subparts

Subparts A, C, E, H, L, M ...... None ...... Not applicable. 0

Subparts G, H, I, J: 37; 53; 68; 70; 71; Request approval for various operations Burden included with other approved 0 72; 73. or submit plans or applications. collections in 30 CFR Part 550 (Sub- part A 1010–0114, Subpart B 1010– 0151) and in BSEE 30 CFR 250 (Subpart A 1014–0022, Subpart D 1014–0018).

Subparts B through F

Subpart B: All sections ...... Submit general suggestions and relevant Not considered IC as defined in 5 CFR 0 information in response to request for 1320.3(h)(4). comments on proposed 5-year leasing program, including information from States/local governments..

Submit suggestions and specific informa- 4 ...... 69 ...... 276 tion in response to request for com- ments on proposed 5-year leasing pro- gram, including information from States/local governments.***

Subpart D: All sections ...... Submit general response to Call for Infor- Not considered IC as defined in 5 CFR 0 mation and Nominations on areas for 1320.3(h)(4). leasing of minerals in specified areas in accordance with an approved leasing program, including information from States/local governments.

Submit specific response to Call for Infor- 4 ...... 80 (20 re- 320 mation and Nominations on areas for sponses/sale leasing of minerals in specified areas in × 2 sales/call accordance with an approved leasing × 2 calls/year). program, including information from States/local governments.***

Subpart F: 31 ...... States or local governments submit com- 4 ...... 25 responses .... 100 ments/recommendations on size, timing or location of proposed lease sale.

Subtotal ...... 174 responses .. 696 hours

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Non-Hour Cost Burdens ** Average Citation 30 CFR part 556 and NTLs Reporting requirement * number of Annual Hour burden annual burden hours responses

Subpart G

Subpart G: 35; 46(d), (e) ...... Establish a Company File for pre-quali- 2 ...... 107 responses .. 214 fication; submit updated information, submit qualifications for lessee/bidder, request exception.

41; 43; 46(g)...... Submit qualification of bidders for joint 2 ...... 100 responses .. 200 bids and statement or report of produc- tion, along with supporting information/ appeal.

44; 46; 47 ...... Submit bids and required information, in- 5 ...... 2,000 bids ...... 10,000 cluding GDIS & maps in manner speci- fied. Make available to BOEM.

47(c) ...... File agreement to accept joint lease on 31/2 ...... 2 agreements ... 7 tie bids.

47(e)(1), (e)(3) ...... Request for reconsideration of bid rejec- Not considered IC ...... 0 tion. as defined in 5 CFR 1320.3(h)(9).

47(f), (i); 50 ...... Execute lease (includes submission of 1 ...... 852 leases ...... 852 evidence of authorized agent and re- quest for dating of leases; lease stipu- lations).

Subtotal ...... 3,061 responses 11,273 hours

Subpart I

Subpart I: 52(f)(2), (g)(2) ...... Submit authority for Regional Director to 2 ...... 12 submissions 24 sell Treasury or alternate type of secu- rities.

53(a), 53(b); 54 ...... OCS Mineral Lessee’s and Operator’s 1⁄3 ...... 135 responses .. 45 (rounded) Bond (Form BOEM–2028).

53(c), (d), (f); 54(e) ...... Demonstrate financial worth/ability to 31⁄2 ...... 166 submissions 581 carry out present and future financial obligations, request approval of another form of security, or request reduction in amount of supplemental bond required.

54 ...... OCS Mineral Lessee’s and Operator’s 1/4 ...... 141 responses .. 35 Supplemental Plugging & Abandon- ment Bond (Form BOEM–2028A).

55 ...... Notify BOEM of any lapse in previous 1 ...... 4 notices ...... 4 bond/action filed alleging lessee, sur- ety, or guarantor is insolvent or bank- rupt.

56 ...... Provide plan/instructions to fund lease- 12 ...... 2 submission .... 24 specific abandonment account and re- lated information; request approval to withdraw funds.

57 ...... Provide third-party guarantee, indemnity 19 ...... 46 submissions 874 agreement, financial information, re- lated notices, reports, and annual up- date; notify BOEM if guarantor be- comes unqualified.

57(d)(3); 58 ...... Notice of and request approval to termi- 1/2 ...... 378 requests ..... 189 nate period of liability, cancel bond, or other security.

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Non-Hour Cost Burdens ** Average Citation 30 CFR part 556 and NTLs Reporting requirement * number of Annual Hour burden annual burden hours responses

59(c)(2) ...... Provide information to demonstrate lease 16 ...... 5 responses ...... 80 will be brought into compliance.

Subtotal ...... 889 responses .. 1,856 hours

Subpart J

Subpart J: 62; 63; 64; 65; 67 ...... File application and required information 2 forms @ 30 min 1,414 applica- 1,414 for assignment or transfer for approval/ ea = 1 hr. tions/forms. comment on filing fee (Forms BOEM– 0150 and BOEM–0151).

1,414 Title/Rights (Transfer) Assignments @$ $198 = $279,972

63; 64(a)(8)...... Submit non-required documents, for 0 ...... 11,518 docu- 0 record purposes, which respondents ments. want BOEM to file with the lease docu- ment. [Accepted on behalf of lessees as a service, BOEM does not require nor need the filings.].

11,518 @$ $29 = $334,022

64(a)(7) ...... File required instruments creating or 1 ...... 2,369 filings ...... 2,369 transferring working interests, etc., for record purposes.

Subtotal ...... 15,301 re- 3,783 hours sponses.

$613,994 non-hour cost burdens

Subpart K

Subpart K: 76; 92(a) ...... File written request for relinquishment 1 ...... 247 247 (Form BOEM–152). relinquishmen- ts.

77(c) ...... Comment on lease cancellation (BOEM 1 ...... 1 comment ...... 1 expects 1 in 10 years).

Subtotal ...... 248 responses .. 248 hours

Subpart N

Subpart N: 92(a) ...... Request a bonus or royalty credit; submit 1 ...... 1 request ...... 1 supporting documentation.

95 ...... Request approval to transfer bonus or 1 ...... 1 request ...... 1 credit to another party; submit sup- porting information..

Subtotal ...... 2 responses ...... 2 hours.

Average number of Annual 30 CFR 550 Subpart J Reporting requirement * Hour burden annual burden hours responses

550.1011(a) ...... Provide surety bond (Form BOEM–2030) GOM 1/4 ...... 52 forms ...... 13 and required information..

Pacific 31⁄2 ...... 3 forms ...... 11

TOTAL ...... 55 responses .... 24 hours.

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Average number of Annual Citation 30 CFR Part 560 Reporting requirement * Hour burden annual burden hours responses

124(a) ...... Request BOEM to reconsider field as- Exempt under 5 ...... 0 signment of a lease. CFR 1320.4(a)(2), (c).

TOTAL REPORTING ...... 19,730 Responses 17,882 Hours

$613,994 Non-Hour Cost Burdens * In the future, BOEM may require electronic filing of certain submissions. ** Fees are subject to modifications annually per inflation. *** Existing requirement, previously overlooked.

Estimated Reporting and Dated: January 24, 2014. 205–1810. Persons with mobility Recordkeeping Non-Hour Cost Burden: Deanna Meyer-Pietruszka, impairments who will need special $613,994. Chief, Office of Policy, Regulations, and assistance in gaining access to the Public Disclosure Statement: The PRA Analysis. Commission should contact the Office (44 U.S.C. 3501, et seq.) provides that an [FR Doc. 2014–02195 Filed 1–31–14; 8:45 am] of the Secretary at 202–205–2000. agency may not conduct or sponsor a BILLING CODE 4310–MR–P General information concerning the collection of information unless it Commission may also be obtained by displays a currently valid OMB control accessing its internet server (http:// number. Until OMB approves a INTERNATIONAL TRADE www.usitc.gov). The public record for collection of information, you are not COMMISSION this review may be viewed on the obligated to respond. Commission’s electronic docket (EDIS) [Investigation Nos. 701–TA–451 and 731– at http://edis.usitc.gov. Comments: Section 3506(c)(2)(A) of TA–1126–1127 (Review)] SUPPLEMENTARY INFORMATION: On the PRA (44 U.S.C. 3501, et seq.,) January 23, 2014, the Commission Lightweight Thermal Paper From China requires each agency ‘‘. . . to provide determined that it should proceed to and Germany; Notice of Commission notice . . . and otherwise consult with full reviews in the subject five-year Determination To Conduct Full Five- members of the public and affected reviews pursuant to section 751(c)(5) of year Reviews agencies concerning each proposed the Act. The Commission found that the collection of information . . .’’ Agencies AGENCY: United States International domestic interested party group must specifically solicit comments to: Trade Commission. response to its notice of institution (78 (a) Evaluate whether the collection is ACTION: Notice. FR 60313, October 1, 2013) was necessary or useful; (b) evaluate the adequate and that the respondent accuracy of the burden of the proposed SUMMARY: The Commission hereby gives interested party group response with collection of information; (c) enhance notice that it will proceed with full respect to Germany was adequate, and the quality, usefulness, and clarity of reviews pursuant to section 751(c)(5) of decided to conduct a full review of the the information to be collected; and (d) the Tariff Act of 1930 (19 U.S.C. antidumping duty order on lightweight minimize the burden on the 1675(c)(5)) to determine whether thermal paper from Germany. The respondents, including the use of revocation of the countervailing duty Commission found that the respondent technology. order and antidumping duty orders on interested party group response with To comply with the public lightweight thermal paper from China respect to subject imports from China consultation process, on November 4, and Germany would be likely to lead to was inadequate. However, the 2013, BOEM published a Federal continuation or recurrence of material Commission determined to conduct full Register notice (78 FR 66066) injury within a reasonably foreseeable reviews concerning the orders on announcing that we would submit this time. A schedule for the reviews will be lightweight thermal paper from China to ICR to OMB for approval. This notice established and announced at a later promote administrative efficiency in provided the required 60-day comment date. For further information concerning light of its decision to conduct a full period. We received one comment, but the conduct of these reviews and rules review with respect to Germany.1 A it was not relevant to the information of general application, consult the record of the Commissioners’ votes, the collection. Commission’s Rules of Practice and Commission’s statement on adequacy, Procedure, part 201, subparts A through and any individual Commissioner’s Public Availability of Comments: E (19 CFR part 201), and part 207, statements will be available from the Before including your address, phone subparts A, D, E, and F (19 CFR part Office of the Secretary and at the number, email address, or other 207). Commission’s Web site. personal identifying information in your comment, you should be aware that DATES: Effective Date: January 23, 2014. Authority: These reviews are being your entire comment—including your conducted under authority of title VII of the FOR FURTHER INFORMATION CONTACT: Tariff Act of 1930; this notice is published personal identifying information—may Amy Sherman (202–205–3289), Office pursuant to section 207.62 of the be made publicly available at any time. of Investigations, U.S. International Commission’s rules. While you can ask us in your comment Trade Commission, 500 E Street SW., By order of the Commission. to withhold your personal identifying Washington, DC 20436. Hearing- information from public review, we impaired persons can obtain 1 Commissioners Shara L. Aranoff and F. Scott cannot guarantee that we will be able to information on this matter by contacting Kieff did not participate in these adequacy do so. the Commission’s TDD terminal on 202– determinations.

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Issued: January 28, 2014. of Cresta Technology Corporation on calendar days after the date of Lisa R. Barton, January 28, 2014. The complaint alleges publication of this notice in the Federal Acting Secretary to the Commission. violations of section 337 of the Tariff Register. There will be further [FR Doc. 2014–02151 Filed 1–31–14; 8:45 am] Act of 1930 (19 U.S.C. 1337) in the opportunities for comment on the BILLING CODE 7020–02–P importation into the United States, the public interest after the issuance of any sale for importation, and the sale within final initial determination in this the United States after importation of investigation. INTERNATIONAL TRADE certain television sets, television Persons filing written submissions COMMISSION receivers, television tuners, and must file the original document components thereof. The complaint electronically on or before the deadlines Notice of Receipt of Complaint; names as respondents Silicon stated above and submit 8 true paper Solicitation of Comments Relating to Laboratories, Inc. of Austin, TX; copies to the Office of the Secretary by the Public Interest Samsung Electronics Co., Ltd. of Korea; noon the next day pursuant to section Samsung Electronics America, Inc. of 210.4(f) of the Commission’s Rules of AGENCY: U.S. International Trade Ridgefield Park, NJ; LG Electronics Inc. Practice and Procedure (19 CFR Commission. of Korea; LG Electronics U.S.A. of 210.4(f)). Submissions should refer to ACTION: Notice. Englewood Cliffs, NJ; MaxLinear, Inc. of the docket number (‘‘Docket No. 2999’’) SUMMARY: Notice is hereby given that Carlsbad, CA; Sharp Corporation of in a prominent place on the cover page the U.S. International Trade Japan; Sharp Electronics Corporation of and/or the first page. (See Handbook for Commission has received a complaint Mahwah, NJ; and VIZIO Inc. of Irvine, Electronic Filing Procedures, Electronic 4 entitled Certain Television Sets, CA. The complainant requests that the Filing Procedures ). Persons with Television Receivers, Television Tuners, Commission issue a permanent limited questions regarding filing should and Components Thereof, DN 2999; the exclusion order, and cease and desist contact the Secretary (202–205–2000). Commission is soliciting comments on orders. Any person desiring to submit a any public interest issues raised by the Proposed respondents, other document to the Commission in complaint or complainant’s filing under interested parties, and members of the confidence must request confidential section 210.8(b) of the Commission’s public are invited to file comments, not treatment. All such requests should be Rules of Practice and Procedure (19 CFR to exceed five (5) pages in length, directed to the Secretary to the 210.8(b)). inclusive of attachments, on any public Commission and must include a full statement of the reasons why the FOR FURTHER INFORMATION CONTACT: Lisa interest issues raised by the complaint Commission should grant such R. Barton, Acting Secretary to the or section 210.8(b) filing. Comments treatment. See 19 CFR 201.6. Documents Commission, U.S. International Trade should address whether issuance of the for which confidential treatment by the Commission, 500 E Street SW., relief specifically requested by the Commission is properly sought will be Washington, DC 20436, telephone (202) complainant in this investigation would treated accordingly. All nonconfidential 205–2000. The public version of the affect the public health and welfare in written submissions will be available for complaint can be accessed on the the United States, competitive public inspection at the Office of the Commission’s Electronic Document conditions in the United States Secretary and on EDIS.5 Information System (EDIS) at EDIS,1 and economy, the production of like or directly competitive articles in the This action is taken under the will be available for inspection during authority of section 337 of the Tariff Act official business hours (8:45 a.m. to 5:15 United States, or United States consumers. of 1930, as amended (19 U.S.C. 1337), p.m.) in the Office of the Secretary, U.S. and of sections 201.10 and 210.8(c) of International Trade Commission, 500 E In particular, the Commission is interested in comments that: the Commission’s Rules of Practice and Street SW., Washington, DC 20436, Procedure (19 CFR 201.10, 210.8(c)). telephone (202) 205–2000. (i) explain how the articles potentially General information concerning the subject to the requested remedial orders Issued: January 29, 2014. Commission may also be obtained by are used in the United States; By order of the Commission. accessing its Internet server at United (ii) identify any public health, safety, Lisa R. Barton, States International Trade Commission or welfare concerns in the United States Acting Secretary to the Commission. (USITC) at USITC.2 The public record relating to the requested remedial [FR Doc. 2014–02160 Filed 1–31–14; 8:45 am] orders; for this investigation may be viewed on BILLING CODE 7020–02–P (iii) identify like or directly the Commission’s Electronic Document competitive articles that complainant, Information System (EDIS) at EDIS.3 its licensees, or third parties make in the Hearing-impaired persons are advised INTERNATIONAL TRADE United States which could replace the that information on this matter can be COMMISSION subject articles if they were to be obtained by contacting the excluded; [Investigation No. 731–TA–1020 (Second Commission’s TDD terminal on (202) (iv) indicate whether complainant, Review)] 205–1810. complainant’s licensees, and/or third SUPPLEMENTARY INFORMATION: The Barium Carbonate From China; party suppliers have the capacity to Institution of a Five-Year Review Commission has received a complaint replace the volume of articles and a submission pursuant to section potentially subject to the requested AGENCY: United States International 210.8(b) of the Commission’s Rules of exclusion order and/or a cease and Trade Commission. Practice and Procedure filed on behalf desist order within a commercially ACTION: Notice. reasonable time; and 1 Electronic Document Information System (v) explain how the requested 4 (EDIS): http://edis.usitc.gov. remedial orders would impact United Handbook for Electronic Filing Procedures: 2 United States International Trade Commission http://www.usitc.gov/secretary/fed_reg_notices/ (USITC): http://edis.usitc.gov. States consumers. rules/handbook_on_electronic_filing.pdf. 3 Electronic Document Information System Written submissions must be filed no 5 Electronic Document Information System (EDIS): http://edis.usitc.gov. later than by close of business, eight (EDIS): http://edis.usitc.gov.

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SUMMARY: The Commission hereby gives Commission is now conducting a or their representatives, who are parties notice that it has instituted a review second review to determine whether to the review. pursuant to section 751(c) of the Tariff revocation of the order would be likely Former Commission employees who Act of 1930 (19 U.S.C. 1675(c)) (the Act) to lead to continuation or recurrence of are seeking to appear in Commission to determine whether revocation of the material injury to the domestic industry five-year reviews are advised that they antidumping duty order on barium within a reasonably foreseeable time. It may appear in a review even if they carbonate from China would be likely to will assess the adequacy of interested participated personally and lead to continuation or recurrence of party responses to this notice of substantially in the corresponding material injury. Pursuant to section institution to determine whether to underlying original investigation. The 751(c)(2) of the Act, interested parties conduct a full review or an expedited Commission’s designated agency ethics are requested to respond to this notice review. The Commission’s official has advised that a five-year by submitting the information specified determination in any expedited review review is not considered the ‘‘same below to the Commission; 1 to be will be based on the facts available, particular matter’’ as the corresponding assured of consideration, the deadline which may include information underlying original investigation for for responses is March 5, 2014. provided in response to this notice. purposes of 18 U.S.C. § 207, the post Comments on the adequacy of responses Definitions.—The following employment statute for Federal may be filed with the Commission by definitions apply to this review: employees, and Commission rule April 18, 2014. For further information (1) Subject Merchandise is the class or 201.15(b) (19 CFR 201.15(b)), 73 FR concerning the conduct of this review kind of merchandise that is within the 24609 (May 5, 2008). This advice was and rules of general application, consult scope of the five-year review, as defined developed in consultation with the the Commission’s Rules of Practice and by the Department of Commerce. Office of Government Ethics. Procedure, part 201, subparts A through (2) The Subject Country in this review Consequently, former employees are not E (19 CFR part 201), and part 207, is China. required to seek Commission approval subparts A, D, E, and F (19 CFR part (3) The Domestic Like Product is the to appear in a review under Commission 207). domestically produced product or rule 19 CFR 201.15, even if the DATES: Effective Date: February 3, 2014. products which are like, or in the corresponding underlying original FOR FURTHER INFORMATION CONTACT: absence of like, most similar in investigation was pending when they Mary Messer (202–205–3193), Office of characteristics and uses with, the were Commission employees. For Investigations, U.S. International Trade Subject Merchandise. In its original further ethics advice on this matter, Commission, 500 E Street SW., determination and its expedited first contact Carol McCue Verratti, Deputy Washington, DC 20436. Hearing- five-year review determination, the Agency Ethics Official, at 202–205– impaired persons can obtain Commission defined one Domestic Like 3088. information on this matter by contacting Product consisting of barium carbonate, Limited disclosure of business the Commission’s TDD terminal on 202– regardless of form or grade, coextensive proprietary information (BPI) under an 205–1810. Persons with mobility with Commerce’s scope. administrative protective order (APO) impairments who will need special (4) The Domestic Industry is the U.S. and APO service list.—Pursuant to assistance in gaining access to the producers as a whole of the Domestic section 207.7(a) of the Commission’s Commission should contact the Office Like Product, or those producers whose rules, the Secretary will make BPI of the Secretary at 202–205–2000. collective output of the Domestic Like submitted in this review available to General information concerning the Product constitutes a major proportion authorized applicants under the APO Commission may also be obtained by of the total domestic production of the issued in the review, provided that the accessing its internet server (http:// product. In its original determination application is made no later than 21 www.usitc.gov). The public record for and its expedited first five-year days after publication of this notice in this review may be viewed on the determination, the Commission defined the Federal Register. Authorized Commission’s electronic docket (EDIS) the Domestic Industry as all producers applicants must represent interested at http://edis.usitc.gov. of barium carbonate. parties, as defined in 19 U.S.C. 1677(9), SUPPLEMENTARY INFORMATION: (5) An Importer is any person or firm who are parties to the review. A Background.— On October 1, 2003, the engaged, either directly or through a separate service list will be maintained Department of Commerce issued an parent company or subsidiary, in by the Secretary for those parties antidumping duty order on imports of importing the Subject Merchandise into authorized to receive BPI under the barium carbonate from China (68 FR the United States from a foreign APO. 56619). Following the five-year reviews manufacturer or through its selling Certification.—Pursuant to section by Commerce and the Commission, agent. 207.3 of the Commission’s rules, any effective March 17, 2009, Commerce Participation in the review and public person submitting information to the issued a continuation of the service list.—Persons, including Commission in connection with this antidumping duty order on imports of industrial users of the Subject review must certify that the information barium carbonate from China 74 FR Merchandise and, if the merchandise is is accurate and complete to the best of 11348 (March 17, 2009). The sold at the retail level, representative the submitter’s knowledge. In making consumer organizations, wishing to the certification, the submitter will be 1 No response to this request for information is participate in the review as parties must deemed to consent, unless otherwise required if a currently valid Office of Management file an entry of appearance with the specified, for the Commission, its and Budget (OMB) number is not displayed; the employees, and contract personnel to OMB number is 3117–0016/USITC No. 14–5–305, Secretary to the Commission, as expiration date June 30, 2014. Public reporting provided in section 201.11(b)(4) of the use the information provided in any burden for the request is estimated to average 15 Commission’s rules, no later than 21 other reviews or investigations of the hours per response. Please send comments days after publication of this notice in same or comparable products which the regarding the accuracy of this burden estimate to Commission conducts under Title VII of the Office of Investigations, U.S. International Trade the Federal Register. The Secretary will Commission, 500 E Street SW., Washington, DC maintain a public service list containing the Act, or in internal audits and 20436. the names and addresses of all persons, investigations relating to the programs

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and operations of the Commission (1) The name and address of your firm trade/business association, provide the pursuant to 5 U.S.C. Appendix 3. or entity (including World Wide Web information, on an aggregate basis, for Written submissions.—Pursuant to address) and name, telephone number, the firms in which your workers are section 207.61 of the Commission’s fax number, and Email address of the employed/which are members of your rules, each interested party response to certifying official. association. this notice must provide the information (2) A statement indicating whether (a) Production (quantity) and, if specified below. The deadline for filing your firm/entity is a U.S. producer of known, an estimate of the percentage of such responses is March 5, 2014. the Domestic Like Product, a U.S. union total U.S. production of the Domestic Pursuant to section 207.62(b) of the or worker group, a U.S. importer of the Like Product accounted for by your Commission’s rules, eligible parties (as Subject Merchandise, a foreign producer firm’s(s’) production; specified in Commission rule or exporter of the Subject Merchandise, (b) Capacity (quantity) of your firm to 207.62(b)(1)) may also file comments a U.S. or foreign trade or business produce the Domestic Like Product (i.e., concerning the adequacy of responses to association, or another interested party the level of production that your the notice of institution and whether the (including an explanation). If you are a establishment(s) could reasonably have Commission should conduct an union/worker group or trade/business expected to attain during the year, expedited or full review. The deadline association, identify the firms in which assuming normal operating conditions for filing such comments is April 18, your workers are employed or which are (using equipment and machinery in 2014. All written submissions must members of your association. place and ready to operate), normal conform with the provisions of sections (3) A statement indicating whether operating levels (hours per week/weeks 201.8 and 207.3 of the Commission’s your firm/entity is willing to participate per year), time for downtime, rules and any submissions that contain in this review by providing information maintenance, repair, and cleanup, and a BPI must also conform with the requested by the Commission. typical or representative product mix); (4) A statement of the likely effects of requirements of sections 201.6 and (c) the quantity and value of U.S. the revocation of the antidumping duty 207.7 of the Commission’s rules. Please commercial shipments of the Domestic order on the Domestic Industry in be aware that the Commission’s rules Like Product produced in your U.S. general and/or your firm/entity with respect to electronic filing have plant(s); specifically. In your response, please (d) the quantity and value of U.S. been amended. The amendments took discuss the various factors specified in internal consumption/company effect on November 7, 2011. See 76 FR section 752(a) of the Act (19 U.S.C. transfers of the Domestic Like Product 61937 (Oct. 6, 2011) and the newly 1675a(a)) including the likely volume of produced in your U.S. plant(s); and revised Commission’s Handbook on E- subject imports, likely price effects of (e) the value of (i) net sales, (ii) cost Filing, available on the Commission’s subject imports, and likely impact of of goods sold (COGS), (iii) gross profit, Web site at http://edis.usitc.gov. Also, in imports of Subject Merchandise on the (iv) selling, general and administrative accordance with sections 201.16(c) and Domestic Industry. (SG&A) expenses, and (v) operating 207.3 of the Commission’s rules, each (5) A list of all known and currently income of the Domestic Like Product document filed by a party to the review operating U.S. producers of the produced in your U.S. plant(s) (include must be served on all other parties to Domestic Like Product. Identify any both U.S. and export commercial sales, the review (as identified by either the known related parties and the nature of internal consumption, and company public or APO service list as the relationship as defined in section transfers) for your most recently appropriate), and a certificate of service 771(4)(B) of the Act (19 U.S.C. completed fiscal year (identify the date must accompany the document (if you 1677(4)(B)). on which your fiscal year ends). are not a party to the review you do not (6) A list of all known and currently (10) If you are a U.S. importer or a need to serve your response). operating U.S. importers of the Subject trade/business association of U.S. Inability to provide requested Merchandise and producers of the importers of the Subject Merchandise information.—Pursuant to section Subject Merchandise in the Subject from the Subject Country, provide the 207.61(c) of the Commission’s rules, any Country that currently export or have following information on your firm’s(s’) interested party that cannot furnish the exported Subject Merchandise to the operations on that product during information requested by this notice in United States or other countries after calendar year 2013 (report quantity data the requested form and manner shall 2007. in short tons and value data in U.S. notify the Commission at the earliest (7) A list of 3–5 leading purchasers in dollars). If you are a trade/business possible time, provide a full explanation the U.S. market for the Domestic Like association, provide the information, on of why it cannot provide the requested Product and the Subject Merchandise an aggregate basis, for the firms which information, and indicate alternative (including street address, World Wide are members of your association. forms in which it can provide Web address, and the name, telephone (a) The quantity and value (landed, equivalent information. If an interested number, fax number, and Email address duty-paid but not including party does not provide this notification of a responsible official at each firm). antidumping duties) of U.S. imports (or the Commission finds the (8) A list of known sources of and, if known, an estimate of the explanation provided in the notification information on national or regional percentage of total U.S. imports of inadequate) and fails to provide a prices for the Domestic Like Product or Subject Merchandise from the Subject complete response to this notice, the the Subject Merchandise in the U.S. or Country accounted for by your firm’s(s’) Commission may take an adverse other markets. imports; inference against the party pursuant to (9) If you are a U.S. producer of the (b) the quantity and value (f.o.b. U.S. section 776(b) of the Act (19 U.S.C. Domestic Like Product, provide the port, including antidumping duties) of 1677e(b)) in making its determination in following information on your firm’s U.S. commercial shipments of Subject the review. operations on that product during Merchandise imported from the Subject Information To Be Provided In calendar year 2013, except as noted Country; and Response To This Notice Of Institution: (report quantity data in short tons and (c) the quantity and value (f.o.b. U.S. As used below, the term ‘‘firm’’ includes value data in U.S. dollars, f.o.b. plant). port, including antidumping duties) of any related firms. If you are a union/worker group or U.S. internal consumption/company

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transfers of Subject Merchandise Merchandise produced in the Subject E (19 CFR part 201), and part 207, imported from the Subject Country. Country, and such merchandise from subparts A, D, E, and F (19 CFR part (11) If you are a producer, an exporter, other countries. 207). or a trade/business association of (13) (OPTIONAL) A statement of DATES: Effective February 3, 2014. producers or exporters of the Subject whether you agree with the above FOR FURTHER INFORMATION CONTACT: Merchandise in the Subject Country, definitions of the Domestic Like Product Mary Messer (202–205–3193), Office of provide the following information on and Domestic Industry; if you disagree Investigations, U.S. International Trade your firm’s(s’) operations on that with either or both of these definitions, Commission, 500 E Street SW., product during calendar year 2013 please explain why and provide Washington, DC 20436. Hearing- (report quantity data in short tons and alternative definitions. impaired persons can obtain value data in U.S. dollars, landed and Authority: This review is being conducted information on this matter by contacting duty-paid at the U.S. port but not under authority of Title VII of the Tariff Act the Commission’s TDD terminal on 202– including antidumping duties). If you of 1930; this notice is published pursuant to 205–1810. Persons with mobility are a trade/business association, provide section 207.61 of the Commission’s rules. impairments who will need special the information, on an aggregate basis, By order of the Commission. assistance in gaining access to the for the firms which are members of your Commission should contact the Office association. Dated: January 27, 2014. (a) Production (quantity) and, if Lisa R. Barton, of the Secretary at 202–205–2000. known, an estimate of the percentage of Acting Secretary to the Commission. General information concerning the Commission may also be obtained by total production of Subject Merchandise [FR Doc. 2014–01897 Filed 1–31–14; 8:45 am] accessing its internet server (http:// in the Subject Country accounted for by BILLING CODE 7020–02–P your firm’s(s’) production; www.usitc.gov). The public record for (b) Capacity (quantity) of your firm(s) these reviews may be viewed on the to produce the Subject Merchandise in INTERNATIONAL TRADE Commission’s electronic docket (EDIS) the Subject Country (i.e., the level of COMMISSION at http://edis.usitc.gov. production that your establishment(s) SUPPLEMENTARY INFORMATION: [Investigation Nos. 701–TA–454 and 731– Background.—On March 17, 2009, the could reasonably have expected to TA–1144 (Review)] attain during the year, assuming normal Department of Commerce issued an operating conditions (using equipment Welded Stainless Steel Pressure Pipe antidumping duty order on imports of and machinery in place and ready to From China; Institution of Five-Year welded stainless steel pressure pipe operate), normal operating levels (hours Reviews from China (74 FR 11351). On March 19, per week/weeks per year), time for 2009, the Department of Commerce downtime, maintenance, repair, and AGENCY: United States International issued a countervailing duty order on cleanup, and a typical or representative Trade Commission. imports of welded stainless steel product mix); and ACTION: Notice. pressure pipe from China (74 FR 11712). (c) the quantity and value of your The Commission is conducting reviews firm’s(s’) exports to the United States of SUMMARY: The Commission hereby gives to determine whether revocation of the Subject Merchandise and, if known, an notice that it has instituted reviews orders would be likely to lead to estimate of the percentage of total pursuant to section 751(c) of the Tariff continuation or recurrence of material exports to the United States of Subject Act of 1930 (19 U.S.C. 1675(c)) (the Act) injury to the domestic industry within Merchandise from the Subject Country to determine whether revocation of the a reasonably foreseeable time. It will accounted for by your firm’s(s’) exports. antidumping and countervailing duty assess the adequacy of interested party (12) Identify significant changes, if orders on welded stainless steel responses to this notice of institution to any, in the supply and demand pressure pipe from China would be determine whether to conduct full or conditions or business cycle for the likely to lead to continuation or expedited reviews. The Commission’s Domestic Like Product that have recurrence of material injury. Pursuant determinations in any expedited occurred in the United States or in the to section 751(c)(2) of the Act, interested reviews will be based on the facts market for the Subject Merchandise in parties are requested to respond to this available, which may include the Subject Country after 2007, and notice by submitting the information information provided in response to this significant changes, if any, that are specified below to the Commission; 1 to notice. likely to occur within a reasonably be assured of consideration, the Definitions.—The following foreseeable time. Supply conditions to deadline for responses is March 5, 2014. definitions apply to these reviews: consider include technology; Comments on the adequacy of responses (1) Subject Merchandise is the class or production methods; development may be filed with the Commission by kind of merchandise that is within the efforts; ability to increase production April 18, 2014. For further information scope of the five-year reviews, as (including the shift of production concerning the conduct of these reviews defined by the Department of facilities used for other products and the and rules of general application, consult Commerce. use, cost, or availability of major inputs the Commission’s Rules of Practice and (2) The Subject Country in these into production); and factors related to Procedure, part 201, subparts A through reviews is China. the ability to shift supply among (3) The Domestic Like Product is the different national markets (including 1 No response to this request for information is domestically produced product or barriers to importation in foreign required if a currently valid Office of Management products which are like, or in the and Budget (OMB) number is not displayed; the markets or changes in market demand OMB number is 3117–0016/USITC No. 14–5–307, absence of like, most similar in abroad). Demand conditions to consider expiration date June 30, 2014. Public reporting characteristics and uses with, the include end uses and applications; the burden for the request is estimated to average 15 Subject Merchandise. In its original existence and availability of substitute hours per response. Please send comments determinations, the Commission regarding the accuracy of this burden estimate to products; and the level of competition the Office of Investigations, U.S. International Trade defined one Domestic Like Product among the Domestic Like Product Commission, 500 E Street SW., Washington, DC consisting of small-diameter welded produced in the United States, Subject 20436. pressure pipe with an outside diameter

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not greater than 14 inches, as corresponding underlying original respect to electronic filing have been coextensive with Commerce’s scope. investigation was pending when they amended. The amendments took effect (4) The Domestic Industry is the U.S. were Commission employees. For on November 7, 2011. See 76 FR 61937 producers as a whole of the Domestic further ethics advice on this matter, (Oct. 6, 2011) and the newly revised Like Product, or those producers whose contact Carol McCue Verratti, Deputy Commission’s Handbook on E-Filing, collective output of the Domestic Like Agency Ethics Official, at 202–205– available on the Commission’s Web site Product constitutes a major proportion 3088. at http://edis.usitc.gov. Also, in of the total domestic production of the Limited disclosure of business accordance with sections 201.16(c) and product. In its original determinations, proprietary information (BPI) under an 207.3 of the Commission’s rules, each the Commission defined the Domestic administrative protective order (APO) document filed by a party to the reviews Industry as all producers of small- and APO service list.—Pursuant to must be served on all other parties to diameter welded pressure pipe with an section 207.7(a) of the Commission’s the reviews (as identified by either the outside diameter not greater than 14 rules, the Secretary will make BPI public or APO service list as inches. submitted in these reviews available to appropriate), and a certificate of service (5) The Order Date is the date that the authorized applicants under the APO must accompany the document (if you antidumping and countervailing duty issued in the reviews, provided that the are not a party to the reviews you do not orders under review became effective. application is made no later than 21 need to serve your response). The Order Date concerning the days after publication of this notice in Inability to provide requested antidumping duty order is March 17, the Federal Register. Authorized information.—Pursuant to section 2009, and the Order Date concerning the applicants must represent interested 207.61(c) of the Commission’s rules, any countervailing duty order is March 19, parties, as defined in 19 U.S.C. 1677(9), interested party that cannot furnish the 2009. who are parties to the reviews. A information requested by this notice in (6) An Importer is any person or firm separate service list will be maintained the requested form and manner shall engaged, either directly or through a by the Secretary for those parties notify the Commission at the earliest parent company or subsidiary, in authorized to receive BPI under the possible time, provide a full explanation importing the Subject Merchandise into APO. of why it cannot provide the requested the United States from a foreign Certification.—Pursuant to section information, and indicate alternative manufacturer or through its selling 207.3 of the Commission’s rules, any forms in which it can provide agent. person submitting information to the equivalent information. If an interested Participation in the reviews and Commission in connection with these party does not provide this notification public service list.—Persons, including reviews must certify that the (or the Commission finds the industrial users of the Subject information is accurate and complete to explanation provided in the notification Merchandise and, if the merchandise is the best of the submitter’s knowledge. In inadequate) and fails to provide a sold at the retail level, representative making the certification, the submitter complete response to this notice, the consumer organizations, wishing to will be deemed to consent, unless Commission may take an adverse participate in the reviews as parties otherwise specified, for the inference against the party pursuant to must file an entry of appearance with Commission, its employees, and section 776(b) of the Act (19 U.S.C. the Secretary to the Commission, as contract personnel to use the 1677e(b)) in making its determinations provided in section 201.11(b)(4) of the information provided in any other in the reviews. Commission’s rules, no later than 21 reviews or investigations of the same or Information To Be Provided in days after publication of this notice in comparable products which the Response To This Notice of Institution: the Federal Register. The Secretary will Commission conducts under Title VII of As used below, the term ‘‘firm’’ includes maintain a public service list containing the Act, or in internal audits and any related firms. the names and addresses of all persons, investigations relating to the programs (1) The name and address of your firm or their representatives, who are parties and operations of the Commission or entity (including World Wide Web to the reviews. pursuant to 5 U.S.C. Appendix 3. address) and name, telephone number, Former Commission employees who Written submissions.—Pursuant to fax number, and Email address of the are seeking to appear in Commission section 207.61 of the Commission’s certifying official. five-year reviews are advised that they rules, each interested party response to (2) A statement indicating whether may appear in a review even if they this notice must provide the information your firm/entity is a U.S. producer of participated personally and specified below. The deadline for filing the Domestic Like Product, a U.S. union substantially in the corresponding such responses is March 5, 2014. or worker group, a U.S. importer of the underlying original investigation. The Pursuant to section 207.62(b) of the Subject Merchandise, a foreign producer Commission’s designated agency ethics Commission’s rules, eligible parties (as or exporter of the Subject Merchandise, official has advised that a five-year specified in Commission rule a U.S. or foreign trade or business review is not considered the ‘‘same 207.62(b)(1)) may also file comments association, or another interested party particular matter’’ as the corresponding concerning the adequacy of responses to (including an explanation). If you are a underlying original investigation for the notice of institution and whether the union/worker group or trade/business purposes of 18 U.S.C. 207, the post Commission should conduct expedited association, identify the firms in which employment statute for Federal or full reviews. The deadline for filing your workers are employed or which are employees, and Commission rule such comments is April 18, 2014. All members of your association. 201.15(b) (19 CFR 201.15(b)), 73 FR written submissions must conform with (3) A statement indicating whether 24609 (May 5, 2008). This advice was the provisions of sections 201.8 and your firm/entity is willing to participate developed in consultation with the 207.3 of the Commission’s rules and any in these reviews by providing Office of Government Ethics. submissions that contain BPI must also information requested by the Consequently, former employees are not conform with the requirements of Commission. required to seek Commission approval sections 201.6 and 207.7 of the (4) A statement of the likely effects of to appear in a review under Commission Commission’s rules. Please be aware the revocation of the antidumping and rule 19 CFR 201.15, even if the that the Commission’s rules with countervailing duty orders on the

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Domestic Industry in general and/or Like Product produced in your U.S. in the Subject Country accounted for by your firm/entity specifically. In your plant(s); your firm’s(s’) production; response, please discuss the various (d) the quantity and value of U.S. (b) Capacity (quantity) of your firm(s) factors specified in section 752(a) of the internal consumption/company to produce the Subject Merchandise in Act (19 U.S.C. 1675a(a)) including the transfers of the Domestic Like Product the Subject Country (i.e., the level of likely volume of subject imports, likely produced in your U.S. plant(s); and production that your establishment(s) price effects of subject imports, and (e) the value of (i) net sales, (ii) cost could reasonably have expected to likely impact of imports of Subject of goods sold (COGS), (iii) gross profit, attain during the year, assuming normal Merchandise on the Domestic Industry. (iv) selling, general and administrative operating conditions (using equipment (5) A list of all known and currently (SG&A) expenses, and (v) operating and machinery in place and ready to operating U.S. producers of the income of the Domestic Like Product operate), normal operating levels (hours Domestic Like Product. Identify any produced in your U.S. plant(s) (include known related parties and the nature of both U.S. and export commercial sales, per week/weeks per year), time for the relationship as defined in section internal consumption, and company downtime, maintenance, repair, and 771(4)(B) of the Act (19 U.S.C. transfers) for your most recently cleanup, and a typical or representative 1677(4)(B)). completed fiscal year (identify the date product mix); and (6) A list of all known and currently on which your fiscal year ends). (c) the quantity and value of your operating U.S. importers of the Subject (10) If you are a U.S. importer or a firm’s(s’) exports to the United States of Merchandise and producers of the trade/business association of U.S. Subject Merchandise and, if known, an Subject Merchandise in the Subject importers of the Subject Merchandise estimate of the percentage of total Country that currently export or have from the Subject Country, provide the exports to the United States of Subject exported Subject Merchandise to the following information on your firm’s(s’) Merchandise from the Subject Country United States or other countries since operations on that product during accounted for by your firm’s(s’) exports. the Order Date. calendar year 2013 (report quantity data (12) Identify significant changes, if (7) A list of 3–5 leading purchasers in in short tons and value data in U.S. any, in the supply and demand the U.S. market for the Domestic Like dollars). If you are a trade/business conditions or business cycle for the Product and the Subject Merchandise association, provide the information, on Domestic Like Product that have (including street address, World Wide an aggregate basis, for the firms which occurred in the United States or in the Web address, and the name, telephone are members of your association. market for the Subject Merchandise in number, fax number, and Email address (a) The quantity and value (landed, the Subject Country since the Order of a responsible official at each firm). duty-paid but not including Date, and significant changes, if any, (8) A list of known sources of antidumping or countervailing duties) that are likely to occur within a information on national or regional of U.S. imports and, if known, an reasonably foreseeable time. Supply prices for the Domestic Like Product or estimate of the percentage of total U.S. the Subject Merchandise in the U.S. or imports of Subject Merchandise from conditions to consider include other markets. the Subject Country accounted for by technology; production methods; (9) If you are a U.S. producer of the your firm’s(s’) imports; development efforts; ability to increase Domestic Like Product, provide the (b) the quantity and value (f.o.b. U.S. production (including the shift of following information on your firm’s port, including antidumping and/or production facilities used for other operations on that product during countervailing duties) of U.S. products and the use, cost, or calendar year 2013, except as noted commercial shipments of Subject availability of major inputs into (report quantity data in short tons and Merchandise imported from the Subject production); and factors related to the value data in U.S. dollars, f.o.b. plant). Country; and ability to shift supply among different If you are a union/worker group or (c) the quantity and value (f.o.b. U.S. national markets (including barriers to trade/business association, provide the port, including antidumping and/or importation in foreign markets or information, on an aggregate basis, for countervailing duties) of U.S. internal changes in market demand abroad). the firms in which your workers are consumption/company transfers of Demand conditions to consider include employed/which are members of your Subject Merchandise imported from the end uses and applications; the existence association. Subject Country. and availability of substitute products; (a) Production (quantity) and, if (11) If you are a producer, an exporter, and the level of competition among the known, an estimate of the percentage of or a trade/business association of Domestic Like Product produced in the total U.S. production of the Domestic producers or exporters of the Subject United States, Subject Merchandise Like Product accounted for by your Merchandise in the Subject Country, produced in the Subject Country, and firm’s(s’) production; provide the following information on such merchandise from other countries. (b) Capacity (quantity) of your firm to your firm’s(s’) operations on that (13) (OPTIONAL) A statement of produce the Domestic Like Product (i.e., product during calendar year 2013 whether you agree with the above the level of production that your (report quantity data in short tons and definitions of the Domestic Like Product establishment(s) could reasonably have value data in U.S. dollars, landed and and Domestic Industry; if you disagree expected to attain during the year, duty-paid at the U.S. port but not with either or both of these definitions, assuming normal operating conditions including antidumping or please explain why and provide (using equipment and machinery in countervailing duties). If you are a alternative definitions. place and ready to operate), normal trade/business association, provide the operating levels (hours per week/weeks information, on an aggregate basis, for AUTHORITY: These reviews are being per year), time for downtime, the firms which are members of your conducted under authority of Title VII of the maintenance, repair, and cleanup, and a association. Tariff Act of 1930; this notice is published typical or representative product mix); (a) Production (quantity) and, if pursuant to section 207.61 of the (c) the quantity and value of U.S. known, an estimate of the percentage of Commission’s rules. commercial shipments of the Domestic total production of Subject Merchandise By order of the Commission.

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Issued: January 27, 2014. Commission should contact the Office product. In its original determination, Lisa R. Barton, of the Secretary at 202–205–2000. the Commission defined the Domestic Acting Secretary to the Commission. General information concerning the Like Product as all U.S. producers of [FR Doc. 2014–01891 Filed 1–31–14; 8:45 am] Commission may also be obtained by refined brown aluminum oxide, with BILLING CODE 7020–02–P accessing its Internet server (http:// the exception of Great Lakes Minerals, www.usitc.gov). The public record for which was excluded from the domestic this review may be viewed on the industry as a related party. In its INTERNATIONAL TRADE Commission’s electronic docket (EDIS) expedited first five-year review COMMISSION at http://edis.usitc.gov. determination, the Commission defined SUPPLEMENTARY INFORMATION: one Domestic Industry as consisting of [Investigation No. 731–TA–1022 (Second all domestic producers of refined brown Review)] Background.—On November 19, 2003, the Department of Commerce issued an aluminum oxide. (5) An Importer is any person or firm Refined Brown Aluminum Oxide From antidumping duty order on imports of engaged, either directly or through a China; Institution of A Five-Year refined brown aluminum oxide from parent company or subsidiary, in Review China (68 FR 65249). Following the five- year reviews by Commerce and the importing the Subject Merchandise into AGENCY: United States International Commission, effective March 13, 2009, the United States from a foreign Trade Commission. Commerce issued a continuation of the manufacturer or through its selling agent. ACTION: Notice. antidumping duty order on imports of Participation in the review and public refined brown aluminum oxide from service list.—Persons, including SUMMARY: The Commission hereby gives China (74 FR 10884). The Commission notice that it has instituted a review industrial users of the Subject is now conducting a second review to Merchandise and, if the merchandise is pursuant to section 751(c) of the Tariff determine whether revocation of the Act of 1930 (19 U.S.C. 1675(c)) (the Act) sold at the retail level, representative order would be likely to lead to consumer organizations, wishing to to determine whether revocation of the continuation or recurrence of material antidumping duty order on refined participate in the review as parties must injury to the domestic industry within file an entry of appearance with the brown aluminum oxide from China a reasonably foreseeable time. It will would be likely to lead to continuation Secretary to the Commission, as assess the adequacy of interested party provided in section 201.11(b)(4) of the or recurrence of material injury. responses to this notice of institution to Pursuant to section 751(c)(2) of the Act, Commission’s rules, no later than 21 determine whether to conduct a full days after publication of this notice in interested parties are requested to review or an expedited review. The respond to this notice by submitting the the Federal Register. The Secretary will Commission’s determination in any maintain a public service list containing information specified below to the expedited review will be based on the 1 the names and addresses of all persons, Commission; to be assured of facts available, which may include consideration, the deadline for or their representatives, who are parties information provided in response to this to the review. responses is March 5, 2014. Comments notice. on the adequacy of responses may be Former Commission employees who Definitions.—The following are seeking to appear in Commission filed with the Commission by April 18, definitions apply to this review: 2014. For further information five-year reviews are advised that they (1) Subject Merchandise is the class or may appear in a review even if they concerning the conduct of this review kind of merchandise that is within the participated personally and and rules of general application, consult scope of the five-year review, as defined substantially in the corresponding the Commission’s Rules of Practice and by the Department of Commerce. underlying original investigation. The Procedure, part 201, subparts A through (2) The Subject Country in this review Commission’s designated agency ethics E (19 CFR part 201), and part 207, is China. official has advised that a five-year subparts A, D, E, and F (19 CFR part (3) The Domestic Like Product is the review is not considered the ‘‘same 207). domestically produced product or particular matter’’ as the corresponding DATES: Effective February 3, 2014. products which are like, or in the underlying original investigation for FOR FURTHER INFORMATION CONTACT: absence of like, most similar in purposes of 18 U.S.C. 207, the post Mary Messer (202–205–3193), Office of characteristics and uses with, the employment statute for Federal Investigations, U.S. International Trade Subject Merchandise. In its original employees, and Commission rule Commission, 500 E Street SW., determination and its expedited first 201.15(b) (19 CFR 201.15(b)), 73 FR Washington, DC 20436. five-year review determination, the 24609 (May 5, 2008). This advice was Hearing-impaired persons can obtain Commission defined the Domestic Like developed in consultation with the information on this matter by contacting Product as all merchandise Office of Government Ethics. the Commission’s TDD terminal on 202– corresponding to Commerce’s scope, as Consequently, former employees are not 205–1810. Persons with mobility well as any refined brown aluminum required to seek Commission approval impairments who will need special oxide where particles with a diameter to appear in a review under Commission assistance in gaining access to the greater than 3/8 inch constitute at least rule 19 CFR 201.15, even if the 50 percent of the total weight of the corresponding underlying original 1 No response to this request for information is entire batch, as long as this product has investigation was pending when they required if a currently valid Office of Management been crushed, screened, and sorted into were Commission employees. For and Budget (OMB) number is not displayed; the OMB number is 3117–0016/USITC No. 14–5–306, consistent sizes. further ethics advice on this matter, expiration date June 30, 2014. Public reporting (4) The Domestic Industry is the U.S. contact Carol McCue Verratti, Deputy burden for the request is estimated to average 15 producers as a whole of the Domestic Agency Ethics Official, at 202–205– hours per response. Please send comments Like Product, or those producers whose 3088. regarding the accuracy of this burden estimate to the Office of Investigations, U.S. International Trade collective output of the Domestic Like Limited disclosure of business Commission, 500 E Street SW., Washington, DC Product constitutes a major proportion proprietary information (BPI) under an 20436. of the total domestic production of the administrative protective order (APO)

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and APO service list.—Pursuant to the review (as identified by either the known related parties and the nature of section 207.7(a) of the Commission’s public or APO service list as the relationship as defined in section rules, the Secretary will make BPI appropriate), and a certificate of service 771(4)(B) of the Act (19 U.S.C. submitted in this review available to must accompany the document (if you 1677(4)(B)). authorized applicants under the APO are not a party to the review you do not (6) A list of all known and currently issued in the review, provided that the need to serve your response). operating U.S. importers of the Subject application is made no later than 21 Inability to provide requested Merchandise and producers of the days after publication of this notice in information.—Pursuant to section Subject Merchandise in the Subject the Federal Register. Authorized 207.61(c) of the Commission’s rules, any Country that currently export or have applicants must represent interested interested party that cannot furnish the exported Subject Merchandise to the parties, as defined in 19 U.S.C. 1677(9), information requested by this notice in United States or other countries after who are parties to the review. A the requested form and manner shall 2007. separate service list will be maintained notify the Commission at the earliest (7) A list of 3–5 leading purchasers in by the Secretary for those parties possible time, provide a full explanation the U.S. market for the Domestic Like authorized to receive BPI under the of why it cannot provide the requested Product and the Subject Merchandise APO. information, and indicate alternative (including street address, World Wide Certification.—Pursuant to section forms in which it can provide Web address, and the name, telephone 207.3 of the Commission’s rules, any equivalent information. If an interested number, fax number, and Email address person submitting information to the party does not provide this notification of a responsible official at each firm). Commission in connection with this (or the Commission finds the (8) A list of known sources of review must certify that the information explanation provided in the notification information on national or regional is accurate and complete to the best of inadequate) and fails to provide a prices for the Domestic Like Product or the submitter’s knowledge. In making complete response to this notice, the the Subject Merchandise in the U.S. or the certification, the submitter will be Commission may take an adverse other markets. deemed to consent, unless otherwise inference against the party pursuant to (9) If you are a U.S. producer of the specified, for the Commission, its section 776(b) of the Act (19 U.S.C. Domestic Like Product, provide the employees, and contract personnel to 1677e(b)) in making its determination in following information on your firm’s use the information provided in any the review. operations on that product during other reviews or investigations of the Information To Be Provided In calendar year 2013, except as noted same or comparable products which the Response To This Notice of Institution: (report quantity data in short tons and Commission conducts under Title VII of As used below, the term ‘‘firm’’ includes value data in U.S. dollars, f.o.b. plant). the Act, or in internal audits and any related firms. If you are a union/worker group or investigations relating to the programs (1) The name and address of your firm trade/business association, provide the and operations of the Commission or entity (including World Wide Web information, on an aggregate basis, for pursuant to 5 U.S.C. Appendix 3. address) and name, telephone number, the firms in which your workers are Written submissions.—Pursuant to fax number, and Email address of the employed/which are members of your section 207.61 of the Commission’s certifying official. association. rules, each interested party response to (2) A statement indicating whether (a) Production (quantity) and, if this notice must provide the information your firm/entity is a U.S. producer of known, an estimate of the percentage of specified below. The deadline for filing the Domestic Like Product, a U.S. union total U.S. production of the Domestic such responses is March 5, 2014. or worker group, a U.S. importer of the Like Product accounted for by your Pursuant to section 207.62(b) of the Subject Merchandise, a foreign producer firm’s(s’) production; Commission’s rules, eligible parties (as or exporter of the Subject Merchandise, (b) Capacity (quantity) of your firm to specified in Commission rule a U.S. or foreign trade or business produce the Domestic Like Product (i.e., 207.62(b)(1)) may also file comments association, or another interested party the level of production that your concerning the adequacy of responses to (including an explanation). If you are a establishment(s) could reasonably have the notice of institution and whether the union/worker group or trade/business expected to attain during the year, Commission should conduct an association, identify the firms in which assuming normal operating conditions expedited or full review. The deadline your workers are employed or which are (using equipment and machinery in for filing such comments is April 18, members of your association. place and ready to operate), normal 2014. All written submissions must (3) A statement indicating whether operating levels (hours per week/weeks conform with the provisions of sections your firm/entity is willing to participate per year), time for downtime, 201.8 and 207.3 of the Commission’s in this review by providing information maintenance, repair, and cleanup, and a rules and any submissions that contain requested by the Commission. typical or representative product mix); BPI must also conform with the (4) A statement of the likely effects of (c) the quantity and value of U.S. requirements of sections 201.6 and the revocation of the antidumping duty commercial shipments of the Domestic 207.7 of the Commission’s rules. Please order on the Domestic Industry in Like Product produced in your U.S. be aware that the Commission’s rules general and/or your firm/entity plant(s); with respect to electronic filing have specifically. In your response, please (d) the quantity and value of U.S. been amended. The amendments took discuss the various factors specified in internal consumption/company effect on November 7, 2011. See 76 FR section 752(a) of the Act (19 U.S.C. transfers of the Domestic Like Product 61937 (Oct. 6, 2011) and the newly 1675a(a)) including the likely volume of produced in your U.S. plant(s); and revised Commission’s Handbook on E- subject imports, likely price effects of (e) the value of (i) net sales, (ii) cost Filing, available on the Commission’s subject imports, and likely impact of of goods sold (COGS), (iii) gross profit, Web site at http://edis.usitc.gov. Also, in imports of Subject Merchandise on the (iv) selling, general and administrative accordance with sections 201.16(c) and Domestic Industry. (SG&A) expenses, and (v) operating 207.3 of the Commission’s rules, each (5) A list of all known and currently income of the Domestic Like Product document filed by a party to the review operating U.S. producers of the produced in your U.S. plant(s) (include must be served on all other parties to Domestic Like Product. Identify any both U.S. and export commercial sales,

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internal consumption, and company Subject Merchandise and, if known, an International Trade Commission on transfers) for your most recently estimate of the percentage of total December 27, 2013, under section 337 of completed fiscal year (identify the date exports to the United States of Subject the Tariff Act of 1930, as amended, 19 on which your fiscal year ends). Merchandise from the Subject Country U.S.C. 1337, on behalf of Macronix (10) If you are a U.S. importer or a accounted for by your firm’s(s’) exports. International Co., Ltd. of Taiwan and trade/business association of U.S. (12) Identify significant changes, if Macronix America, Inc. of Milpitas, importers of the Subject Merchandise any, in the supply and demand California. A revised complaint was from the Subject Country, provide the conditions or business cycle for the filed on December 31, 2013, and a letter following information on your firm’s(s’) Domestic Like Product that have supplementing the revised complaint operations on that product during occurred in the United States or in the was filed on January 14, 2014. The calendar year 2013 (report quantity data market for the Subject Merchandise in revised complaint alleges violations of in short tons and value data in U.S. the Subject Country after 2007, and section 337 based upon the importation dollars). If you are a trade/business significant changes, if any, that are into the United States, the sale for association, provide the information, on likely to occur within a reasonably importation, and the sale within the an aggregate basis, for the firms which foreseeable time. Supply conditions to United States after importation of are members of your association. consider include technology; certain non-volatile memory devices (a) The quantity and value (landed, production methods; development and products containing the same by duty-paid but not including efforts; ability to increase production reason of infringement of U.S. Patent antidumping duties) of U.S. imports (including the shift of production No. 6,552,360 (‘‘the ’360 patent’’); U.S. and, if known, an estimate of the facilities used for other products and the Patent No. 6,100,557 (‘‘the ’557 patent’’); percentage of total U.S. imports of use, cost, or availability of major inputs and 6,002,630 (‘‘the ’630 patent’’). The Subject Merchandise from the Subject into production); and factors related to revised complaint further alleges that an Country accounted for by your firm’s(s’) the ability to shift supply among industry in the United States exists or imports; different national markets (including is in the process of being established as (b) the quantity and value (f.o.b. U.S. barriers to importation in foreign required by subsection (a)(2) of section port, including antidumping duties) of markets or changes in market demand 337. U.S. commercial shipments of Subject abroad). Demand conditions to consider The complainants request that the Merchandise imported from the Subject include end uses and applications; the Commission institute an investigation Country; and existence and availability of substitute and, after the investigation, issue a (c) the quantity and value (f.o.b. U.S. products; and the level of competition general exclusion order and cease and port, including antidumping duties) of among the Domestic Like Product desist orders. U.S. internal consumption/company produced in the United States, Subject transfers of Subject Merchandise Merchandise produced in the Subject ADDRESSES: The revised complaint, imported from the Subject Country. Country, and such merchandise from except for any confidential information (11) If you are a producer, an exporter, other countries. contained therein, is available for or a trade/business association of (13) (OPTIONAL) A statement of inspection during official business producers or exporters of the Subject whether you agree with the above hours (8:45 a.m. to 5:15 p.m.) in the Merchandise in the Subject Country, definitions of the Domestic Like Product Office of the Secretary, U.S. provide the following information on and Domestic Industry; if you disagree International Trade Commission, 500 E your firm’s(s’) operations on that with either or both of these definitions, Street SW., Room 112, Washington, DC product during calendar year 2013 please explain why and provide 20436, telephone (202) 205–2000. (report quantity data in short tons and alternative definitions. Hearing impaired individuals are value data in U.S. dollars, landed and advised that information on this matter Authority: This review is being conducted can be obtained by contacting the duty-paid at the U.S. port but not under authority of Title VII of the Tariff Act including antidumping duties). If you of 1930; this notice is published pursuant to Commission’s TDD terminal on (202) are a trade/business association, provide section 207.61 of the Commission’s rules. 205–1810. Persons with mobility impairments who will need special the information, on an aggregate basis, By order of the Commission. for the firms which are members of your Issued: January 27, 2014. assistance in gaining access to the Commission should contact the Office association. Lisa R. Barton, of the Secretary at (202) 205–2000. (a) Production (quantity) and, if Acting Secretary to the Commission. known, an estimate of the percentage of General information concerning the [FR Doc. 2014–01894 Filed 1–31–14; 8:45 am] total production of Subject Merchandise Commission may also be obtained by in the Subject Country accounted for by BILLING CODE 7020–02–P accessing its internet server at http:// your firm’s(s’) production; www.usitc.gov. The public record for this investigation may be viewed on the (b) Capacity (quantity) of your firm(s) INTERNATIONAL TRADE Commission’s electronic docket (EDIS) to produce the Subject Merchandise in COMMISSION the Subject Country (i.e., the level of at http://edis.usitc.gov. production that your establishment(s) [Investigation No. 337–TA–909] FOR FURTHER INFORMATION CONTACT: The could reasonably have expected to Office of Unfair Import Investigations, Certain Non-Volatile Memory Devices attain during the year, assuming normal U.S. International Trade Commission, and Products Containing Same operating conditions (using equipment telephone (202) 205–2560. and machinery in place and ready to Institution of Investigation Pursuant to 19 U.S.C. 1337 Authority: The authority for institution of operate), normal operating levels (hours this investigation is contained in section 337 per week/weeks per year), time for AGENCY: U.S. International Trade of the Tariff Act of 1930, as amended, and downtime, maintenance, repair, and Commission. in section 210.10 of the Commission’s Rules cleanup, and a typical or representative ACTION: Notice. of Practice and Procedure, 19 CFR 210.10 product mix); and (2013). (c) the quantity and value of your SUMMARY: Notice is hereby given that a Scope of Investigation: Having firm’s(s’) exports to the United States of complaint was filed with the U.S. considered the revised complaint, the

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U.S. International Trade Commission, Harman Becker Automotive Systems, INTERNATIONAL TRADE on January 28, 2014, ordered that— Inc., 39001 West 12 Mile Road, COMMISSION (1) Pursuant to subsection (b) of Farmington Hills, MI 48331. section 337 of the Tariff Act of 1930, as [USITC SE–14–003] Harman Becker Automotive Systems amended, an investigation be instituted GmbH, Becker-Goering-Strasse 16, Government in the Sunshine Act to determine whether there is a 76307 Karlsbad, Germany. Meeting Notice violation of subsection (a)(1)(B) of section 337 in the importation into the Ruckus Wireless, Inc., 350 West Java AGENCY HOLDING THE MEETING: United United States, the sale for importation, Drive, Sunnyvale, CA 94089. States International Trade Commission. or the sale within the United States after Tellabs, Inc., 1415 West Diehl Road, TIME AND DATE: February 7, 2014 at 11:00 importation of certain non-volatile Naperville, IL 60563. a.m. memory devices and products PLACE: Room 101, 500 E Street SW., containing the same by reason of (c) The Office of Unfair Import Washington, DC 20436, Telephone: infringement of one or more of claims Investigations, U.S. International Trade (202) 205–2000. 1–8 of the ’360 patent; claims 1–3, 7, Commission, 500 E Street SW., Suite and 9–13 of the ’557 patent; and claims 401, Washington, DC 20436; and STATUS: Open to the public. 1–6 and 10–16 of the ’630 patent, and (4) For the investigation so instituted, MATTERS TO BE CONSIDERED: whether an industry in the United the Chief Administrative Law Judge, 1. Agendas for future meetings: none States exists or is in the process of being U.S. International Trade Commission, 2. Minutes established as required by subsection shall designate the presiding 3. Ratification List (a)(2) of section 337; Administrative Law Judge. 4. Vote in Inv. No. 731–TA–1123 (2) Pursuant to Commission Rule (Review) (Steel Wire Garment 210.50(b)(1), 19 CFR 210.50(b)(1), the Responses to the revised complaint Hangers from China). The presiding administrative law judge shall and the notice of investigation must be Commission is currently scheduled take evidence or other information and submitted by the named respondents in to complete and file its hear arguments from the parties and accordance with section 210.13 of the determination and views of the other interested persons with respect to Commission’s Rules of Practice and Commission on February 18, 2014. the public interest in this investigation, Procedure, 19 CFR 210.13. Pursuant to 5. Outstanding action jackets: none as appropriate, and provide the 19 CFR 201.16(e) and 210.13(a), such In accordance with Commission Commission with findings of fact and a responses will be considered by the policy, subject matter listed above, not recommended determination on this Commission if received not later than 20 disposed of at the scheduled meeting, issue, which shall be limited to the days after the date of service by the may be carried over to the agenda of the statutory public interest factors set forth Commission of the revised complaint following meeting. in 19 U.S.C. 1337(d)(1), (f)(1), (g)(1); and the notice of investigation. By order of the Commission. (3) For the purpose of the Extensions of time for submitting Issued: January 28, 2014. investigation so instituted, the following responses to the revised complaint and William R. Bishop, are hereby named as parties upon which the notice of investigation will not be Supervisory Hearings and Information this notice of investigation shall be granted unless good cause therefor is Officer. served: shown. (a) The complainants are: [FR Doc. 2014–02189 Filed 1–30–14; 11:15 am] Macronix International Co., Ltd., No. 16, Failure of a respondent to file a timely BILLING CODE 7020–02–P Li-Hsin Road, Science Park, Hsin-chu, response to each allegation in the Taiwan. revised complaint and in this notice Macronix America, Inc., 680 North may be deemed to constitute a waiver of DEPARTMENT OF JUSTICE McCarthy Boulevard, Suite 200, the right to appear and contest the [OMB Number 1123–0009] Milpitas, CA 95035. allegations of the revised complaint and (b) The respondents are the following this notice, and to authorize the Agency Information Collection entities alleged to be in violation of administrative law judge and the Activities: Information Collection section 337, and are the parties upon Commission, without further notice to Renewal; Comments Requested: which the revised complaint is to be the respondent, to find the facts to be as Inspection of Records Relating to served: alleged in the revised complaint and Visual Depictions of Simulated Spansion, Inc., 915 DeGuigne Drive, this notice and to enter an initial Sexually Explicit Performances Sunnyvale, CA 94085. determination and a final determination Spansion LLC, 915 DeGuigne Drive, ACTION: containing such findings, and may 60-Day Notice of Information Sunnyvale, CA 94085. Collection. Spansion (Thailand) Ltd., 229 Moo 4 result in the issuance of an exclusion Changwattana Road, Pakkred, order or a cease and desist order or both The Department of Justice (DOJ), Nonthaburi 11120, Thailand. directed against the respondent. Criminal Division, Child Exploitation Beats Electronics LLC, 1601 Cloverfield Issued: January 29, 2014. and Obscenity Section (CEOS) will Boulevard, Suite 5000N, Santa By order of the Commission. submit the following information Monica, CA 90404. collection renewal to the Office of Lisa R. Barton, Delphi Automotive PLC, Courteney Management and Budget (OMB) for Road, Hoath Way, Gillingham, Kent Acting Secretary to the Commission. review and clearance in accordance ME8 0RU, United Kingdom. [FR Doc. 2014–02154 Filed 1–31–14; 8:45 am] with the Paperwork Reduction Act of Delphi Automotive Systems, LLC, 5725 BILLING CODE 7020–02–P 1995. The information collection Delphi Drive, Troy, MI 48098. renewal is published to obtain Harman International Industries, Inc., comments from the public and affected 400 Atlantic Street, Suite 1500, agencies. Comments are encouraged and Stamford, CT 06901. will be accepted for ‘‘sixty days’’ until

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April 4, 2014. This process is conducted explicit conduct and visual depictions these requirements, the requirements in accordance with 5 CFR 1320.10. of actual sexually explicit conduct would only impose a burden of 30,000 If you have comments especially on constituting the lascivious exhibition of hours (These estimates were included in the estimated number of respondents, the genitals or pubic area of a person. the Department’s 2008 regulatory estimated public burden or associated These statutory requirements of 28 CFR review, including the information response time, suggestions, or need part 75, codified at 18 U.S.C. 2257 and collection request and PRA Supporting additional information, please contact 2257A, are designed to ensure that Statement (RIN 1105–AB19). The Andrew G. Oosterbaan, Chief, Child visual depictions of sexually explicit Department does not certify the Exploitation and Obscenity Section, conduct are produced in accordance accuracy of these numbers.) Criminal Division, United States with laws and regulations, and without If additional information is required Department of Justice, Washington, DC the involvement of minors under 18 contact: Jerri Murray, Department 20530, email: [email protected], years of age. Clearance Officer, Policy and Planning phone: (202) 514–5780. This is not a (5) An estimate of the total number of Staff, Justice Management Division, toll-free number. respondents and the amount of time Department of Justice, Two Constitution Written comments and suggestions estimated for an average respondent to Square, Room 2E–508, 145 Street NE., from the public and affected agencies respond: The Department is unable to Washington, DC 20530. estimate with any precision the number concerning the collection of information January 28, 2014. are encouraged. Your comments should of entities producing visual depictions Jerri Murray, address one or more of the following of actual or simulated sexually explicit four points: conduct. As a partial indication, the Department Clearance Officer, PRA, U.S. (1) Whether the collection of Department’s 2008 regulatory review, Department of Justice. information is necessary for the proper including the information collection [FR Doc. 2014–02092 Filed 1–31–14; 8:45 am] performance of the functions of the request and PRA Supporting Statement BILLING CODE 4410–14–P agency, including whether the (RIN 1105–AB19), cited data collected information will have practical utility; by the U.S. Census Bureau in 2002. (2) The accuracy of the agency’s Employing the same method of analysis, DEPARTMENT OF JUSTICE estimate of the burden of the collection according to data collected by the U.S. [OMB Number 1103—NEW] of information, including the validity of Census Bureau in 2007, there were the methodology and assumptions used; 11,974 establishments engaged in Office of Community Oriented Policing (3) How to enhance the quality, motion picture and video production in Services; Agency Information utility, and clarity of the information to the United States. Based on a rough Collection Activities; Proposed New be collected; and assumption that 10% of the Collection; Comments Requested; (4) How to minimize the burden of the establishments are engaged in the Drug Endangered Children Tracking collection of information on those who production of visual depictions of System User Survey are to respond, including through the simulated sexually explicit conduct, the use of appropriate automated, Department estimates that ACTION: 30-Day Notice. electronic, mechanical, or other approximately 1,974 motion picture and technological collection techniques or video producing establishments are The Department of Justice (DOJ) other forms of information technology, required to comply with these statutory Office of Community Oriented Policing e.g., permitting electronic submission of requirements. (The Department does not Services (COPS) will be submitting the responses. certify this estimate.) following information collection request Summary of Information Collection: Additionally, the statute provides an to the Office of Management and Budget (1) Type of Information Collection: exemption from these requirements (OMB) for review and approval in Renewal of a currently approved applicable in certain circumstances, and accordance with the Paperwork collection. it requires producers to submit Reduction Act of 1995. This notice was (2) Title: Inspection of Records certifications to qualify for this previously published in the Federal Relating to Visual Depictions of Actual exemption. From March 18, 2009, the Register Volume 78, Number 226, on and Simulated Sexually Explicit effective date of the certification regime, November 22, 2013, allowing a 60 day Performances to the present, the Department has comment period. (3) Agency form number, if any: None received approximately 1400 The purpose of this notice is to allow (4) Affected public who will be asked certification letters. For the entities that for an additional 30 days for public or required to respond, as well as a brief qualify for the exemption, the comment until March 5, 2014. This abstract: Primary: Business or other for- Department estimates that it would take process is conducted in accordance with profit. Other: None. less than 20 hours per year to prepare 5 CFR 1320.10. Abstract: This is a renewal of an the biennial certification required for If you have comments, especially on existing information collection the exemption. the estimated public burden or implementing the record-keeping, (6) An estimate of the total public associated response time, suggestions, labeling, and inspection requirements of burden (in hours) associated with the or need a copy of the proposed 28 CFR part 75. collection: If OMB were to assume that information collection instrument with Need for Collection: 3,000,000 visual depictions of actual or instructions or additional information, The information collection documents simulated sexually explicit conduct are please contact Danielle Ouellette, the record-keeping, labeling, and created each year and that it requires 6 Department of Justice Office of inspection requirements for producers minutes to complete the record-keeping Community Oriented Policing Services, of visual depictions of actual and requirement for each depiction, the 145 N Street NE., Washington, DC simulated sexually explicit conduct, record-keeping requirements would 20530. and the certification regime for the impose a burden of 300,000 hours. If, Written comments and suggestions exemption from these requirements, in however, OMB were to assume that from the public and affected agencies certain circumstances, for producers of producers of 90% of these depictions concerning the proposed collection of visual depictions of simulated sexually qualify for the statutory exemption from information are encouraged. Your

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comments should address one or more Clearance Officer, United States for the proper performance of the of the following four points: Department of Justice, Justice functions of the agency, including —Evaluate whether the proposed Management Division, Policy and whether the information will have collection of information is necessary Planning Staff, Two Constitution practical utility; for the proper performance of the Square, 145 N Street NE., Room 1407B, (2) Evaluate the accuracy of the functions of the agency, including Washington, DC 20530. agency’s estimate of the burden of the whether the information will have Dated: January 28, 2014. proposed collection of information, practical utility; Jerri Murray, including the validity of the —Evaluate the accuracy of the agency’s Department Clearance Officer for PRA, U.S. methodology and assumptions used; estimate of the burden of the Department of Justice. (3) Enhance the quality, utility, and proposed collection of information, [FR Doc. 2014–02090 Filed 1–31–14; 8:45 am] clarity of the information to be including the validity of the BILLING CODE 4410–AT–P collected; and methodology and assumptions used; (4) Minimize the burden of the —Enhance the quality, utility, and collection of information on those who clarity of the information to be DEPARTMENT OF JUSTICE are to respond, including through the collected; and use of appropriate automated, —Minimize the burden of the collection Federal Bureau of Investigation electronic, mechanical, or other of information on those who are to [OMB Number 1110—NEW] technological collection techniques of respond, including through the use of other forms of information technology, appropriate automated, electronic, Agency Information Collection e.g., permitting electronic submission of mechanical, or other technological Activities: Proposed Collection, responses. collection techniques or other forms Comments Requested; New Collection; of information technology, e.g., Overview of This Information Uniform Crime Reporting Data Collection permitting electronic submission of Collection Instrument Pretesting and responses. Burden Estimation General Clearance (1) Type of information collection: Overview of This Information New collection. ACTION: Collection 30-day notice. (2) The title of the form/collection: Uniform Crime Reporting Data The Department of Justice, Federal (1) Type of Information Collection: Collection Instrument Pretesting and Bureau of Investigation, Criminal Justice Proposed new collection; comments Burden Estimation General Clearance. Information Services Division will be requested. (3) The agency form number, if any, (2) Title of the Form/Collection: Drug submitting the following information and the applicable component of the Endangered Children Tracking System collection request to the Office of department sponsoring the collection: User Survey. Management and Budget (OMB) for (3) Agency form number, if any, and review and clearance in accordance New collection; Criminal Justice the applicable component of the with established review procedures of Information Services Division, Federal Department sponsoring the collection: the Paperwork Reduction Act of 1995. Bureau of Investigation, Department of None. U.S. Department of Justice Office The proposed information collection is Justice. of Community Oriented Policing published to obtain comments from the (4) Affected public who will be asked Services. public and affected agencies. This or required to respond, as well as a brief (4) Affected public who will be asked proposed information collection was abstract: Primary: City, county, state, or required to respond, as well as a brief previously published in the Federal tribal, and federal law enforcement abstract: System users, both law Register Volume 78, Number 228, page agencies. Abstract: This clearance enforcement and child welfare workers, 70577, on November 26, 2013, allowing provides the UCR Program the ability to will be asked to provide customer for a 60 day comment period. conduct pretests which evaluate the service feedback regarding the Colorado The purpose of this notice is to allow validity and reliability of information Alliance for Drug Endangered Children for an additional 30 days for public collection instruments and determine Tracking System (DECSYS). Through a comment until March 5, 2014 This the level of burden state and local cooperative agreement with the COPS process is conducted in accordance with agencies have in reporting crime data to Office, the Colorado Alliance for Drug 5 CFR 1320.10. the FBI. The Paperwork Reduction Act Endangered Children will gather this Written comments and/or suggestions only allows for nine respondents in feedback in order to assess how agencies regarding the items contained in this pretesting activities. This clearance are using DECSYS, what training is notice, especially the estimated public request expands the pretesting sample being provided, challenges, and many burden and associated response time to 30 persons for each of the ten other factors. should be directed to Mrs. Amy C. information collections administered by (5) An estimate of the total number of Blasher, Unit Chief, Federal Bureau of the UCR Program. Further, the clearance respondents and the amount of time Investigation, Criminal Justice will allow for a brief 5-minute cost and estimated for an average respondent to Information Services (CJIS) Division, burden assessment for the 18,000 law respond/reply: Module E–3, 1000 Custer Hollow Road, enforcement agencies participating in (6) It is estimated that 50 respondents Clarksburg, West Virginia 26306; the UCR Program. annually will complete the form in facsimile (304) 625–3566. (5) An estimate of the total number of approximately 10 minutes (.17 hours). Written comments and suggestions respondents and the amount of time (7) An estimate of the total public from the public and affected agencies estimated for an average respondent to burden (in hours) associated with the concerning the proposed collection of respond: There are a potential of 18,000 collection: There are an estimated 8.5 information are encouraged. Comments law enforcement agency respondents; total annual burden hours associated should address one or more of the calculated estimates indicate 5 minutes with this collection. following four points: for the agency participation cost and If additional information is required (1) Evaluate whether the proposed burden assessments. There are 300 contact: Jerri Murray, Department collection of information is necessary respondents; calculated estimates

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indicate 60 minutes for the UCR forms Additionally, comments may be Statistics collects information on pretesting assessments. submitted to OMB via facsimile to (202) firearm background checks conducted (6) An estimate of the total public 395–7285. by state and local agencies and burden (in hours) associated with this Request written comments and combines this information with the collection: There are approximately suggestions from the public and affected Federal Bureau of Investigation’s 1,800 hours, annual burden, associated agencies concerning the proposed National Instant Criminal Background with this information collection. collection of information are Check System transaction data to If additional information is required encouraged. Your comments should produce a national estimate of the contact Jerri Murray, Department address one or more of the following number of applications received and Clearance Officer, Policy and Planning four points: denied and of the reasons for denial. Staff, Justice Management Division, (1) Evaluate whether the proposed United States Department of Justice, collection of information is necessary The information is also combined with Two Constitution Square, 145 N Street for the proper performance of the data obtained from the Bureau of NE., Room 3W–1407B, Washington, DC functions of the agency, including Alcohol, Tobacco, Firearms, and 20530. whether the information will have Explosives on appeals of denied applications and arrests for falsified Dated: January 28, 2014. practical utility; documents. The Bureau of Justice Jerri Murray, (2) Evaluate the accuracy of the Statistics uses this information in Department Clearance Officer for PRA, U.S. agency’s estimate of the burden of the Department of Justice. proposed collection of information, published reports and in responding to queries from the U.S. Congress, [FR Doc. 2014–02089 Filed 1–31–14; 8:45 am] including the validity of the methodology and assumptions used; Executive Office of the President, state BILLING CODE 4410–02–P (3) Enhance the quality, utility and officials, researchers, students, the clarity of the information to be media, the general public, and others DEPARTMENT OF JUSTICE collected; and interested in criminal justices statistics. (4) Minimize the burden of the (5) An estimate of the total number of Office of Justice Programs collection of information on those who are to respond, including through the respondents and the amount of time [OMB Number 1121–0314] use of appropriate automated, estimated for an average respondent to respond: 761 responses at 25 minutes Agency Information Collection electronic, mechanical, or other technological collection techniques or each. Respondents have the option to Activities: Proposed collection; provide responses using either paper or Comments Requested; Renewal with other forms of information technology, web-based questionnaires. The burden change of a previously approved e.g. permitting electronic submission of estimate is based on the results of the collection: Firearm Inquiry Statistics responses. field test of the 2012 Firearm Inquiry Program Overview of this information collection Statistics Program survey instrument ACTION: 30-day notice. (1) Type of information collection: and feedback received from the 2012 Reinstatement with change of a data collection, as well as the Bureau of The Department of Justice (DOJ), previously approved collection. Justice Statistic’s extensive history Office of Justice Programs, Bureau of (2) The title of the Form/Collection: conducting the FIST data collection. Justice Statistics will be submitting the Firearm Inquiry Statistics Program following information collection request (3) Agency form number, if any, and (6) An estimate of the total public to the Office of Management and Budget the applicable component of the burden (in hours) associated with the (OMB) for review and approval in Department of Justice sponsoring the collection: There are an estimated 317 accordance with the Paperwork collection: Not applicable. annual total burden hours associated Reduction Act of 1995. The proposed (4) Affected public who will be asked with the collection. information collection is published to to respond, as well as a brief abstract: If additional information is required obtain comments from the public and Primary: State and local agencies. State contact: Jerri Murray, Department affected agencies. This proposed and local agencies responsible for Clearance Officer, United States maintaining records on the number of information collection was previously Department of Justice, Justice background checks for firearm transfers published in the Federal Register Management Division, Policy and or permits that were issued, processed, Volume 78, Number 225, page 69875 on Planning Staff, Two Constitution Thursday, November 21, 2013, allowing tracked, or conducted during the calendar year are asked to provide Avenue, 145 N Street NE., Room 3W– for a 60 day comment period. One 1407B, Washington, DC 20530. inquiry related to the uses of FIST data information about: The number of was received to which BJS responded. applications and denials for firearm Dated: January 28, 2014. The purpose of this notice is to allow transfers received or tracked by the Jerri Murray, for an additional 30 days for public agency; reasons why an application was Department Clearance Officer for PRA, U.S. comment until March 5, 2014. This denied; information on arrests that Department of Justice. process is conducted in accordance with occurred when a denied person who [FR Doc. 2014–02091 Filed 1–31–14; 8:45 am] 5 CFR 1320.10. submitted a false application or had an Written comments and/or suggestions outstanding warrant was arrested by the BILLING CODE 4410–18–P regarding the items contained in this checking agency or another agency that notice, especially the estimated public was notified (state agency responders burden or associated response time, only); appeals to an agency and court for should be directed to The Officer of reconsideration of a denial (state agency Management and Budget, Officer of responders only); and reversals of a Information and Regulatory Affairs, denial decision (state agency responders Attention Department of Justice Desk only). Through its Firearm Inquiry Officer, Washington DC 20503. Statistics Program, the Bureau of Justice

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DEPARTMENT OF LABOR I. Background information has been filed, a Section 103(h) of the Federal Mine representative retains his or her status Mine Safety and Health Administration Safety and Health Act of 1977 (Mine unless and until his or her designation [OMB Control No. 1219–0042] Act), as amended, 30 U.S.C. 813, is terminated. Under 30 CFR 40.5, a representative authorizes the Mine Safety and Health who becomes unable to comply with the Proposed Information Collection; Administration (MSHA) to collect requirements of Part 40 must file a Representative of Miners, Notification information necessary to carry out its written statement with the appropriate of Legal Identity, and Notification of duty in protecting the safety and health MSHA district manager terminating his Commencement of Operations and of miners. Closing of Mines or her designation. The Mine Act establishes miners’ Section 109(d) of the Mine Act AGENCY: Mine Safety and Health rights that may be exercised through a requires each operator of a coal or other Administration, Labor. representative. Title 30, Code of Federal mine to file with the Secretary of Labor Regulations (30 CFR) Part 40 contains ACTION: Request for public comments. (Secretary), the name and address of procedures that a person or organization such mine, the name and address of the SUMMARY: The Department of Labor, as must follow to be identified by the person who controls or operates the part of its continuing effort to reduce Secretary as a representative of miners. mine, and any revisions in such names paperwork and respondent burden, The regulations define what is meant by and addresses. conducts a pre-clearance consultation ‘‘representative of miners,’’ a term that MSHA’s regulations in 30 CFR Part 41 program to provide the general public is not defined in the Mine Act. provides for the mandatory use of and Federal agencies with an Title 30 CFR 40.2 requires a MSHA Form 2000–7, Legal Identity opportunity to comment on proposed representative of miners to file the Report, for notifying MSHA of the legal collections of information in accordance information specified in 30 CFR 40.3 identity of the mine operator. The legal with the Paperwork Reduction Act of with the MSHA district manager and the identity of a mine operator is 1995, 44 U.S.C. 3506(c)(2)(A). This mine operator. Title 30 CFR 40.3 fundamental to enable the Secretary to program helps to assure that requested requires the following information to be properly ascertain the identity of data can be provided in the desired filed with MSHA: persons and entities charged with format, reporting burden (time and (1) The name, address, and telephone violations of mandatory standards. It is financial resources) is minimized, number of the representative of miners. also used in the assessment of civil collection instruments are clearly If the representative is an organization, penalties. Because of turnover in mining understood, and the impact of collection the name, address, and telephone company ownership, and because of the requirements on respondents can be number of the organization and the title statutory considerations regarding properly assessed. Currently, the Mine of the official or position, who is to penalty assessments, the operator is Safety and Health Administration serve as the representative and his or required to file information regarding (MSHA) is soliciting comments on the her telephone number. ownership interest in other mines held information collection for (2) The name and address of the by the operator and relevant persons in Representative of Miners, Notification of operator of the mine where the a partnership, corporation, or other Legal Identity, and Notification of represented miners work and the name, organization. This information is also Commencement of Operations and address, and Mine Safety and Health necessary to the Office of the Solicitor Closing of Mines. Administration identification number, if in determining proper parties to actions known, of the mine. DATES: All comments must be received arising under the Mine Act. (3) A copy of the document on or before April 4, 2014. Additionally, MSHA Form 7000–51, evidencing the designation of the Mine Operator Identification Request, is ADDRESSES: Comments concerning the representative of miners. used to allow mine operators to request information collection requirements of (4) A statement that the person or an MSHA mine identification number this notice may be sent by any of the position named as the representative of for each mine. Mine operators request methods listed below. miners is the representative for all mine identification numbers prior to • Federal E-Rulemaking Portal: purposes of the Act; or if the completing and submitting the required http://www.regulations.gov. Follow the representative’s authority is limited, a MSHA Form 2000–7. Therefore, on-line instructions for submitting statement of the limitation. allowing mine operators to submit comments for docket number [MSHA– (5) The names, addresses, and MSHA Form 7000–51 electronically 2013–0039]. • telephone numbers, of any facilitates this process. Regular Mail: Send comments to representative to serve in his absence. Notification of Commencement of MSHA, Office of Standards, (6) A statement that copies of all Operations and Closing of Mines: Under Regulations, and Variances, 1100 information filed pursuant to this 30 CFR 56.1000 and 57.1000, operators Wilson Boulevard, Room 2350, section have been delivered to the of metal and nonmetal mines must Arlington, VA 22209–3939. • operator of the affected mine, prior to or notify MSHA when the operation of a Hand Delivery: MSHA, 1100 Wilson concurrently with the filing of this mine will commence or when a mine is Boulevard, Room 2350, Arlington, VA. statement. closed. Openings and closings of mines Sign in at the receptionist’s desk on the (7) A statement certifying that all are dictated by the economic strength of 21st floor. information filed is true and correct the mined commodity, and by weather FOR FURTHER INFORMATION CONTACT: followed by the signature of the conditions prevailing at the mine site Sheila McConnell, Acting Director, representative of miners. during various seasons. Office of Standards, Regulations, and Title 30 CFR 40.4 requires that a copy MSHA must be aware of mine Variances, MSHA, at of the information provided the operator openings and closings so that its [email protected] pursuant to section 40.3 be posted upon resources can be used efficiently in (email); 202–693–9440 (voice); or 202– receipt by the operator on the mine achieving the requirements of the Mine 693–9441 (facsimile). bulletin board and maintained in a Act. Section 103(a) of the Mine Act SUPPLEMENTARY INFORMATION: current status. Once the required requires that each underground mine be

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inspected in its entirety at least four III. Current Actions the HEOC. The meeting will be held for times a year, and each surface mine at This request for collection of the purpose of organizing the activities least two times per year. Mines that information contains provisions for of the Subcommittee and fact-finding operate only during warmer weather Representative of Miners, Notification of with respect to the research activities must be scheduled for inspection during Legal Identity, and Notification of within the NASA Human Exploration and Operations Mission Directorate. the spring, summer, and autumn Commencement of Operations and seasons. Mines are sometimes located a Closing of Mines. MSHA has updated DATES: Monday, February 24, 2014, 9:00 great distance from MSHA field offices the data in respect to the number of a.m. to 4:00 p.m., Local Time. and the notification required by this respondents, responses, burden hours, ADDRESSES: NASA Headquarters, Room standard can prevent wasted time and and burden costs supporting this 7H41A, 300 E Street SW., Washington, trips. information collection request. DC 20546. II. Desired Focus of Comments Type of Review: Extension, without FOR FURTHER INFORMATION CONTACT: Dr. change, of a currently approved Bradley Carpenter, Human Exploration MSHA is soliciting comments collection. and Operations Mission Directorate, concerning the proposed information Agency: Mine Safety and Health NASA Headquarters, Washington, DC collection related to Representative of Administration. 20546 (202) 358–0826, or Miners, Notification of Legal Identity, OMB Number: 1219–0042. [email protected]. and Notification of Commencement of Affected Public: Business or other for- SUPPLEMENTARY INFORMATION: The Operations and Closing of Mines. profit. meeting will be open to the public up MSHA is particularly interested in Number of Respondents: 10,196. to the capacity of the room. This comments that: Frequency: On occasion. meeting is also available telephonically • Evaluate whether the collection of Number of Responses: 10,196. and by WebEx. Any interested person information is necessary for the proper Annual Burden Hours: 2,029 hours. may call the USA toll free conference performance of the functions of the Annual Respondent or Recordkeeper call number 888–469–2054 or toll agency, including whether the Cost: $2,419. number 210–234–0017, pass code information has practical utility; MSHA Forms: MSHA Form 2000–7, 7872138, to participate in this meeting • Evaluate the accuracy of the Legal Identity Report; MSHA Form by telephone. The WebEx link is MSHA’s estimate of the burden of the 7000–51, Mine Operator Identification https://nasa.webex.com/, the meeting collection of information, including the Request; number is 998 592 996, and the validity of the methodology and MSHA Form 2000–238, password is February2420!4 assumptions used; Representative of Miners Designation The agenda for the meeting includes • Suggest methods to enhance the Form. the following topics: quality, utility, and clarity of the Comments submitted in response to —Role of Research in NASA’s Human information to be collected; and this notice will be summarized and Exploration and Operations • Minimize the burden of the included in the request for Office of Directorate collection of information on those who Management and Budget approval of the —International Space Station Resource are to respond, including through the information collection request; they will Planning use of appropriate automated, also become a matter of public record. —Space Life and Physical Sciences Research Planning electronic, mechanical, or other Dated: January 28, 2014. technological collection techniques or Patricia W. Silvey, Attendees will be requested to sign a other forms of information technology, register and to comply with NASA Certifying Officer. security requirements, including the e.g., permitting electronic submission of [FR Doc. 2014–02073 Filed 1–31–14; 8:45 am] responses. presentation of a valid picture ID to BILLING CODE 4510–43–P Security before access to NASA This information collection request is Headquarters. Foreign nationals available on http://www.msha.gov/regs/ attending this meeting will be required fedreg/informationcollection/ NATIONAL AERONAUTICS AND to provide a copy of their passport and informationcollection.asp. The SPACE ADMINISTRATION visa in addition to providing the information collection request will be following information no less than 10 available on MSHA’s Web site and on [Notice: (14–011)] working days prior to the meeting: Full http://www.regulations.gov. MSHA name; gender; date/place of birth; cautions the commenter against NASA Advisory Council; Human Exploration and Operations citizenship; visa information (number, providing any information in the type, expiration date); passport submission that should not be publicly Committee; Research Subcommittee; Meeting information (number, country, disclosed. Full comments, including expiration date); employer/affiliation personal information provided, will be AGENCY: National Aeronautics and information (name of institution, made available on www.regulations.gov Space Administration. address, country, telephone); title/ and www.reginfo.gov. ACTION: Notice of meeting. position of attendee; and home address The public may also examine publicly to Dr. Bradley Carpenter via email at available documents at MSHA, 1100 SUMMARY: In accordance with the [email protected] or by fax at (202) Wilson Boulevard, Room 2350, Federal Advisory Committee Act, Public 358–2886. U.S. citizens and Permanent Arlington, VA. Sign in at the Law 92–462, as amended, the National Residents (green card holders) are receptionist’s desk on the 21st floor. Aeronautics and Space Administration requested to submit their name and Questions about the information (NASA) announces a meeting of the affiliation 3 working days prior to the collection requirements may be directed Research Subcommittee of the Human meeting to Dr. Carpenter at (202) 358– to the person listed in the FOR FURTHER Exploration and Operations Committee 0826. INFORMATION CONTACT section of this (HEOC) of the NASA Advisory Council It is imperative that the meeting be notice. (NAC). This Subcommittee reports to held on these dates to accommodate the

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scheduling priorities of the key Associate Administrator for Diversity publishes notice at least once monthly participants and Equal Opportunity, NASA of certain Federal agency requests for Headquarters records disposition authority (records Patricia D. Rausch, Associate Administrator for Education, schedules). Once approved by NARA, Advisory Committee Management Officer, NASA Headquarters records schedules provide mandatory National Aeronautics and Space Associate Administrator for Administration. instructions on what happens to records International and Interagency when no longer needed for current [FR Doc. 2014–02145 Filed 1–31–14; 8:45 am] Relations, NASA Headquarters Government business. They authorize BILLING CODE P Associate Administrator for Legislative the preservation of records of and Intergovernmental Affairs, NASA continuing value in the National Headquarters Archives of the United States and the NATIONAL AERONAUTICS AND Assistant Administrator for Human SPACE ADMINISTRATION destruction, after a specified period, of Capital Management, NASA records lacking administrative, legal, Headquarters research, or other value. Notice is [Notice (14–010)] Chief Financial Officer, NASA published for records schedules in Headquarters which agencies propose to destroy Performance Review Board, Senior Chief Information Officer, NASA Executive Service (SES) records not previously authorized for Headquarters disposal or reduce the retention period Chief Engineer, NASA Headquarters AGENCY: National Aeronautics and of records already authorized for Chief, Safety and Mission Assurance, Space Administration (NASA). disposal. NARA invites public NASA Headquarters comments on such records schedules, as ACTION: Notice of Membership of SES Chief Technologist, NASA Headquarters required by 44 U.S.C. 3303a(a). Performance Review Board. Chief Scientist, NASA Headquarters General Counsel, NASA Headquarters DATES: Requests for copies must be SUMMARY: The Civil Service Reform Act Director, Ames Research Center received in writing on or before March of 1978, Public Law 95–454 (Section Director, Dryden Flight Research Center 5, 2014. Once the appraisal of the 405) requires that appointments of Director, Glenn Research Center records is completed, NARA will send individual members to the Performance Director, Goddard Space Flight Center a copy of the schedule. NARA staff Review Board (PRB) be published in the Director, Johnson Space Center usually prepare appraisal Federal Register. Director, Kennedy Space Center memorandums that contain additional The performance review function for Director, Langley Research Center information concerning the records the SES in NASA is being performed by Director, Marshall Space Flight Center covered by a proposed schedule. These, the NASA PRB and the NASA Senior Director, Stennis Space Center too, may be requested and will be Executive Committee. The latter Senior Executive Committee provided once the appraisal is performs this function for senior completed. Requesters will be given 30 executives who report directly to the Chairperson, Deputy Administrator, days to submit comments. Administrator or the Deputy NASA Headquarters ADDRESSES: You may request a copy of Administrator and members of the PRB. Chair, Executive Resources Board, any records schedule identified in this The following individuals are serving NASA Headquarters notice by contacting Records Chair, NASA Performance Review on the Board and the Committee: Management Services (ACNR) using one Board, NASA Headquarters Performance Review Board of the following means: Associate Administrator, NASA Mail: NARA (ACNR), 8601 Adelphi Chairperson, Chief of Staff, NASA Headquarters Road, College Park, MD 20740–6001. Headquarters Associate Deputy Administrator, NASA Email: [email protected]. Executive Secretary, Director, Workforce Headquarters FAX: 301–837–3698. Management and Development Associate Administrator for Diversity Requesters must cite the control Division, NASA Headquarters and Equal Opportunity, NASA number, which appears in parentheses Associate Administrator, NASA Headquarters after the name of the agency which Headquarters Charles F. Bolden, Jr., submitted the schedule, and must Associate Deputy Administrator, NASA Administrator. provide a mailing address. Those who desire appraisal reports should so Headquarters [FR Doc. 2014–02095 Filed 1–31–14; 8:45 am] indicate in their request. Associate Administrator for Human BILLING CODE 7510–13–P Exploration and Operations FOR FURTHER INFORMATION CONTACT: Directorate, NASA Headquarters Margaret Hawkins, Director, Records Associate Administrator for Science NATIONAL ARCHIVES AND RECORDS Management Services (ACNR), National Mission Directorate, NASA ADMINISTRATION Archives and Records Administration, Headquarters 8601 Adelphi Road, College Park, MD Associate Administrator for Aeronautics [NARA–2014–014] 20740–6001. Telephone: 301–837–1799. Research Mission Directorate, NASA Email: [email protected]. Records Schedules; Availability and Headquarters SUPPLEMENTARY INFORMATION: Each year Request for Comments Associate Administrator for Space Federal agencies create billions of Technology Mission Directorate, AGENCY: National Archives and Records records on paper, film, magnetic tape, NASA Headquarters Administration (NARA). and other media. To control this Associate Administrator for Mission ACTION: Notice of availability of accumulation, agency records managers Support Directorate, NASA proposed records schedules; request for prepare schedules proposing retention Headquarters comments. periods for records and submit these Associate Administrator for schedules for NARA’s approval. These Communications, NASA SUMMARY: The National Archives and schedules provide for the timely transfer Headquarters Records Administration (NARA) into the National Archives of

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historically valuable records and preliminary records gathered to produce 12. Department of Health and Human authorize the disposal of all other economic tables and adjustments. Services, Office of the Secretary (DAA– records after the agency no longer needs 2. Department of Commerce, Bureau 0468–2013–0014, 1 item, 1 temporary them to conduct its business. Some of Economic Analysis (DAA–0375– item). Master files of electronic schedules are comprehensive and cover 2013–0003, 8 items, 8 temporary items). information systems containing patient all the records of an agency or one of its Records of the Direct Investment medical care and tracking records. major subdivisions. Most schedules, Division including methodology files, 13. Department of Homeland Security, however, cover records of only one publications, correspondence, special Agency-wide (DAA–0563–2012–0002, office or program or a few series of projects, and international transaction 30 items, 18 temporary items). Public records. Many of these update surveys. affairs records of the Department and its previously approved schedules, and 3. Department of Commerce, National component agencies including some include records proposed as Oceanic and Atmospheric biographies and speeches not at the permanent. Administration (DAA–0370–2013–0001, executive level, background files for The schedules listed in this notice are 9 items, 9 temporary items). Records press conference records, copies of media neutral unless specified related to export administration audiovisual recordings, and routine otherwise. An item in a schedule is regulations, including endorsements, communications. Proposed for media neutral when the disposition inventories, and summary reports. permanent retention are biographies and instructions may be applied to records 4. Department of Defense, Office of speeches at the executive level, press regardless of the medium in which the the Secretary of Defense (DAA–0330– conference records, master files of records are created and maintained. 2013–0011, 1 item, 1 temporary item). audiovisual recordings, and significant Items included in schedules submitted Guest books containing the signatures publications. to NARA on or after December 17, 2007, and personal comments of high-level 14. Department of Justice, Agency- are media neutral unless the item is visitors to the Secretary of Defense and Wide (DAA–0060–2013–0006, 5 items, 5 limited to a specific medium. (See 36 Deputy Secretary of Defense. temporary items). Master files of an CFR 1225.12(e).) 5. Department of Defense, Office of electronic information system No Federal records are authorized for the Secretary of Defense (DAA–0330– containing copies of shared documents, destruction without the approval of the 2013–0017, 1 item, 1 temporary item). account certifications, and system logs. Archivist of the United States. This Master files of an electronic information 15. Department of Justice, Federal approval is granted only after a system used to file complaints against Bureau of Investigation (DAA–0065– thorough consideration of their postsecondary educational institutions. 2013–0003, 3 items, 3 temporary items). administrative use by the agency of 6. Department of Defense, Office of Master files and outputs of an electronic origin, the rights of the Government and system used to track and manage of private persons directly affected by the Secretary of Defense (DAA–0330– 2013–0019, 1 item, 1 temporary item). surveillance requests. the Government’s activities, and 16. Department of Labor, Bureau of Master files of electronic information whether or not they have historical or Labor Statistics (DAA–0257–2013–0001, systems used to review and adjudicate other value. 2 items, 1 temporary item). Electronic personnel security actions. Besides identifying the Federal copies of economic research papers. 7. Department of Defense, Defense agencies and any subdivisions Proposed for permanent retention are Commissary Agency (DAA–0506–2013– requesting disposition authority, this the paper copies of these records. public notice lists the organizational 0002, 4 items, 4 temporary items). 17. Department of the Treasury, unit(s) accumulating the records or Master files of an electronic information Internal Revenue Service (DAA–0058– indicates agency-wide applicability in system used by the agency’s Office of 2014–0001, 1 item, 1 temporary item). the case of schedules that cover records Inspector General to manage Taxpayer offers used to settle tax that may be accumulated throughout an investigations of fraud, waste, and abuse liability cases. agency. This notice provides the control in commissary operations. Also 18. Department of the Treasury, number assigned to each schedule, the included are policy and procedure Internal Revenue Service (DAA–0058– total number of schedule items, and the records for use of the system. 2014–0002, 1 item, 1 temporary item). number of temporary items (the records 8. Department of Defense, Defense Master files of an electronic information proposed for destruction). It also Health Agency (DAA–0330–2013–0007, system used to reduce the payment of includes a brief description of the 1 item, 1 temporary item). Master files fraudulent tax refunds. temporary records. The records of an electronic information system 19. Department of the Treasury, schedule itself contains a full used to support the treatment of Internal Revenue Service (DAA–0058– description of the records at the file unit traumatic brain injuries. 2014–0003, 1 item, 1 temporary item). level as well as their disposition. If 9. Department of Defense, Defense Forms used to extract data from NARA staff has prepared an appraisal Logistics Agency (DAA–0361–2013– compliance systems. memorandum for the schedule, it too 0007, 2 items, 2 temporary items). 20. Department of the Treasury, includes information about the records. Records used to create Internal Revenue Service (N1–590–12– Further information about the recommendations to improve efficiency. 1, 21 items, 19 temporary items). disposition process is available on 10. Department of Defense, Defense Records of the Joint Board for the request. Logistics Agency (DAA–0361–2013– Enrollment of Actuaries including 0008, 5 items, 5 temporary items). enrollment applications, disciplinary Schedules Pending Records related to the inventory and files, reports, correspondence, and 1. Department of Commerce, Bureau control of small arms. related master files of electronic of Economic Analysis (DAA–0375– 11. Department of Education, Federal information systems used to track and 2013–0002, 15 items, 15 temporary Student Aid (DAA–0441–2013–0002, 10 store case data. Proposed for permanent items). Records of the Balance of items, 10 temporary items). Student aid retention are meeting minutes and Payments Division including applications, data files, and financial organization files. correspondence, methodology files, records related to the Federal student 21. Administrative Office of the special studies, surveys, and loan program. United States Courts, Agency-wide

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(DAA–0116–2014–0001 3 items, 2 Library. Proposed for permanent Dated: January 28, 2014. temporary items). Administrative retention are Commission meeting files Michael P. McDonald, records relating to routine audits, of the staff director, transcripts of General Counsel and Federal Register Liaison subject files, and general Commission meetings, executive session Officer. correspondence. Proposed for files, hearing and briefing records, [FR Doc. 2014–02186 Filed 1–31–14; 8:45 am] permanent retention is the commissioners’ correspondence, special BILLING CODE 7536–01–P correspondence of the Director or the project files, congressional committee Deputy Director. files, legislative history files, speech 22. Administrative Office of the files, biographical files, reports to United States Courts, United States NATIONAL SCIENCE FOUNDATION Congress, project case files, and Courts of Appeals (DAA–0276–2013– Notice of Permits Issued Under the 0003, 1 item, 1 temporary item). Circuit organizational planning and structure Antarctic Conservation Act of 1978 mediation records relating to cases. files. 23. Christopher Columbus Fellowship Dated: January 27, 2014. AGENCY: National Science Foundation. Foundation, Agency-wide (N1–508–14– Paul M. Wester, Jr., ACTION: Notice of permits issued under 1, 15 items, 6 temporary items). Chief Records Officer for the U.S. the Antarctic Conservation of 1978, Compliance reports, general program Government. Public Law 95–541. correspondence, application records, [FR Doc. 2014–02178 Filed 1–31–14; 8:45 am] award records, and routine photographs. SUMMARY: The National Science BILLING CODE 7515–01–P Proposed for permanent retention are Foundation (NSF) is required to publish board of trustees records, notice of permits issued under the correspondence of the executive Antarctic Conservation Act of 1978. director, publications, posters, video This is the required notice. recordings, and captioned photographs. NATIONAL FOUNDATION ON THE FOR FURTHER INFORMATION CONTACT: 24. Court Services and Offenders ARTS AND HUMANITIES Supervision Agency for the District of Adrian Dahood, ACA Permit Officer, Columbia, Community Supervision National Endowment for the Division of Polar Programs, Rm. 755, Services (DAA–0562–2013–0013, 1 Humanities National Science Foundation, 4201 item, 1 temporary item). Master files of Wilson Boulevard, Arlington, VA 22230. an electronic information system used Public Availability of the National Or by email: [email protected]. to manage and track closed offender Endowment for the Humanities FY SUPPLEMENTARY INFORMATION: On records. 2013 Service Contract Inventory December 19, 2013 the National Science 25. National Aeronautics and Space Foundation published a notice in the Administration, Agency-wide (DAA– AGENCY: National Endowment for the Federal Register of a permit application 0255–2014–0001, 2 items, 2 temporary Humanities. received. After considering all items). Employment records of the ACTION: Notice of Public Availability of comments received, the permit was agency’s exchanges, recreational FY 2013 Service Contract Inventory. issued on at the close of business on associations, and child care and January 21 2014 to: Ari Friedlaender, educational development centers. Permit No. 2014–028. SUMMARY: In accordance with Section 26. National Archives and Records 743 of Division C of the Consolidated Nadene G. Kennedy, Administration, Agency-wide (DAA– 0064–2014–0001, 2 items, 1 temporary Appropriations Act of 2010 (Pub. L. Polar Coordination Specialist, Division of Polar Programs. item). Email records from staff accounts. 111–117), the National Endowment for Proposed for permanent retention are the Humanities (NEH) is publishing this [FR Doc. 2014–02086 Filed 1–31–14; 8:45 am] senior agency officials’ emails. notice to advise the public of the BILLING CODE 7555–01–P 27. Securities and Exchange availability of the FY 2013 Service Commission, Division of Economic and Contract Inventory. This inventory Risk Analysis (N1–266–12–01, 15 items, provides information on service contract SECURITIES AND EXCHANGE 14 temporary items). Taxonomy actions over $25,000 that were made in COMMISSION development records, organizational FY 2013. The information is organized information records, academic literature by function to show how contracted Submission for OMB Review; reviews, risk assessment models, and resources are distributed throughout the Comment Request reports supporting rulemaking. agency. The inventory has been Upon Written Request, Copies Available Proposed for permanent retention are developed in accordance with guidance From: Securities and Exchange taxonomies used in the data reporting issued on November 5, 2010 and Commission, Office of Investor system. December 19, 2011 by the Office of 28. U.S. Commission on Civil Rights, Education and Advocacy, Management and Budget’s Office of Washington, DC 20549–0213. Agency-wide (N1–453–12–1, 103 items, Federal Procurement Policy (OFPP). 76 temporary items). Records related to OFPP’s guidance is available at http:// Extension: the 10 business units of the agency www.whitehouse.gov/omb/procurement- Rule 301 and Forms ATS and ATS–R, SEC including congressional affairs, public File No. 270–451, OMB Control No. service-contract-inventories. NEH has 3235–0509. affairs, equal employment opportunity posted its FY 2013 inventory documents programs, human resources, on its Web site at the following link: Notice is hereby given that pursuant administrative services, information http://www.neh.gov/about/legal/reports. to the Paperwork Reduction Act of 1995 technology, and regional programs. Also (44 U.S.C. 3501 et seq.), the Securities included are records of the Office of the FOR FURTHER INFORMATION CONTACT: and Exchange Commission Staff Director, Office of the General Barry Maynes in the Administrative (‘‘Commission’’) has submitted to the Counsel, Office of Civil Rights Services Office at 202–606–8233 or Office of Management and Budget Evaluation, and Rankin Civil Rights [email protected]. (‘‘OMB’’) a request for extension of the

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previously approved collection of evaluate the operation of alternative An estimated 95 respondents will file information discussed below. trading systems with regard to national four quarterly reports on Form ATS–R Regulation ATS provides a regulatory market system goals, and monitor the each year for an estimated total of 380 structure for alternative trading systems. competitive effects of these systems to responses. The Commission estimates Regulation ATS allows an alternative ascertain whether the regulatory that that the average compliance burden trading system to choose between framework remains appropriate to the for each filing would be 4 hours, registering as a broker-dealer and operation of such systems. Without the comprising 3 hours of in-house complying with Regulation ATS, or information provided on Forms ATS professional work and 1 hour of clerical registering as a national securities and ATS–R, the Commission would not work. Thus, the total compliance exchange. Regulation ATS provides the have readily available information on a burden per year is 1,520 hours (380 regulatory framework for those regular basis in a format that would responses × 4 hours = 1,520 hours). The alternative trading systems that choose allow it to oversee the securities total cost of compliance for the annual to be regulated as broker-dealers. Rule markets. burden is $456,000 ($379 × 3 hours per 301 of Regulation ATS contains certain Respondents consist of alternative response + $63 × 1 hours per response notice and reporting requirements, as trading systems that choose to register = $1,200 per response; $1,200 × 380 well as additional obligations that apply as broker-dealers and comply with the responses = $456,000). only to alternative trading systems with requirements of Regulation ATS. The An estimated 5 respondents will be significant volume. The Rule requires Commission estimates that there will be required to file a cessation of operations all alternative trading systems that wish approximately 95 respondents. report on Form ATS each year. The to comply with Regulation ATS to file An estimated 95 respondents will file Commission estimates that the average an initial operation report on Form ATS. an average total of 598 responses per compliance burden for each response The initial operation report requires year, which corresponds to an estimated would be 2 hours, comprising 1.5 hours information regarding operation of the aggregated annual response burden of of in-house professional work and 0.5 system including the method of 2,872.50 hours (comprised of 2,156 hours of clerical work. Thus, the total operation, access criteria and the types hours professional labor and 716.5 compliance burden per year is 10 hours of securities traded. Alternative trading hours para-professional labor). At an (5 responses × 2 hours = 10 hours). The systems are also required to supply average cost per burden hour of total cost of compliance for the annual updates on Form ATS to the approximately $379 for professional burden is $3,000 ($379 × 1.5 hours per Commission, describing material labor and $63 for para-professional response + $63 × 0.5 hours per response changes to the system, and quarterly labor, the resultant total related cost of = $600 per response; $600 × 5 responses transaction reports on Form ATS–R. compliance for these respondents is = $3,000). Alternative trading systems are also $862,263.50 per year ((2,156 An estimated 2 respondents will meet required to file cessation of operations professional burden hours multiplied by certain volume thresholds requiring reports on Form ATS. $379 = $817,124) plus (716.5 para- them to establish written standards for An alternative trading system with professional burden hours multiplied by granting access to their systems. The significant volume is required to comply $63 = $45,139.50). Commission estimates that the average with requirements for fair access and An estimated 7 respondents will compliance burden for each response systems capacity, integrity, and security. commence operations as an ATS each would be 10 hours of in-house Under Rule 301, such alternative trading year, necessitating the filing of an initial professional work at $379 per hour. system is required to establish written operation report on Form ATS. The Thus, the total compliance burden per standards for granting access to its Commission estimates that the average year is 20 hours (2 responses × 10 hours system. In addition, such alternative compliance burden for each respondent = 20 hours). The total cost of trading system is required to make and would be 20 hours, comprising 13 hours compliance for the annual burden is keep records of all grants of access of in-house professional work and 7 $7,580 ($379 × 10 hours per response × including, for all subscribers, the hours of clerical work. Thus, the total 2 responses = $7,580). reasons for granting such access, and all compliance burden per year is 140 An estimated 2 respondents will meet denials or limitations of access and hours (7 responses × 20 hours = 140 certain volume thresholds requiring reasons, for each applicant, for denying hours). The total cost of compliance for them to make and keep records of (1) all or limiting access. Regulation ATS the annual burden is $37,576 ($379 × 13 grants of access including, for all requires alternative trading systems to hours per response + $63 × 7 hours per subscribers, the reasons for granting preserve any records made in the response = $5,368 per response; $5,368 such access; and (2) all denials or process of complying with the capacity, × 7 responses = $37,576). limitations of access and reasons, for integrity, and security requirements. In An estimated 95 respondents will file each applicant, for denying or limiting addition, such alternative trading an estimated two periodic amendments access. The Commission estimates that systems are required to notify to their initial operation report on Form the average compliance burden for each Commission staff of material systems ATS each year, an estimated total of 190 response would be 10 hours of in-house outages and significant systems changes. amendments. The Commission professional work at $379 per hour. The Commission uses the information estimates that the average compliance Thus, the total compliance burden per provided pursuant to the Regulation burden for each amendment would be 6 year is 20 hours (2 respondents × 10 ATS to monitor the growth and hours, comprising 4.5 hours of in-house hours = 20 hours). The total cost of development of alternative trading professional work and 1.5 hours of compliance for the annual burden is systems, and to monitor whether the clerical work. Thus, the total $7,580 ($379 × 10 hours per response × systems promote fair and orderly compliance burden per year is 1,140 2 respondents = $7,580). securities markets and operate in a hours (190 responses × 6 hours = 1,140 An estimated 2 respondents will meet manner that is consistent with the hours). The total cost of compliance for certain volume thresholds requiring federal securities laws. In particular, the the annual burden is $342,000 ($379 × them to keep records relating to any information collected and reported to 4.5 hours per response + $63 × 1.5 hours steps taken to comply with systems the Commission by alternative trading per response = $1,800 per response; capacity, integrity, and security systems enables the Commission to $1,800 × 190 responses = $342,000). requirements under Rule 301. The

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Commission estimates that the average Bayer, Director/Chief Information futures commission merchant or compliance burden for each response Officer, Securities and Exchange introducing broker to conduct a would be 10 hours of in-house Commission, c/o Remi Pavlik-Simon, business in security futures products. professional work at $379 per hour. 100 F Street NE., Washington, DC Compliance with Rule 15b11–1 does not Thus, the total compliance burden per 20549, or by sending an email to: PRA_ involve the collection of confidential year is 20 hours (2 respondents × 10 [email protected]. Comments must be information. hours = 20 hours). The total cost of submitted to OMB within 30 days of An agency may not conduct or compliance for the annual burden is this notice. sponsor, and a person is not required to × × $7,580 ($379 10 hours per response Dated: January 28, 2014. respond to, a collection of information 2 respondents = $7,580). Kevin M. O’Neill, under the PRA unless it displays a An estimated 2 respondents will meet currently valid OMB control number. certain volume thresholds requiring Deputy Secretary. The public may view background them to provide a notice to the [FR Doc. 2014–02143 Filed 1–31–14; 8:45 am] documentation for this information Commission to report any system BILLING CODE 8011–01–P collection at the following Web site: outages, and these notice obligations www.reginfo.gov. Comments should be will be triggered an estimated 5 times directed to: (i) Desk Officer for the SECURITIES AND EXCHANGE per year for each respondent. The Securities and Exchange Commission, COMMISSION Commission estimates that the average Office of Information and Regulatory compliance burden for each response Submission for OMB Review; Affairs, Office of Management and would be 0.25 hours of in-house Comment Request Budget, Room 10102, New Executive professional work at $379 per hour. Office Building, Washington, DC 20503, Thus, the total compliance burden per Upon Written Request, Copies Available or by sending an email to: Shagufta_ × year is 2.5 hours (2 respondents 5 From: U.S. Securities and Exchange [email protected]; and (ii) Thomas × responses each 0.25 hours = 2.5 Commission, Office of Investor Bayer, Director/Chief Information hours). The total cost of compliance for Education and Advocacy, Officer, Securities and Exchange × the annual burden is $947.50 ($379 Washington, DC 20549–0213. Commission, c/o Remi Pavlik-Simon, × 0.25 hours per response 10 responses 100 F Street NE., Washington, DC 20549 = $947.50). Extension: Form BD–N/Rule 15b11–1, SEC File No. or send an email to: PRA_Mailbox@ Compliance with Rule 301 is 270–498, OMB Control No. 3235–0556. sec.gov. Comments must be submitted to mandatory. The information required by OMB within 30 days of this notice. the Rule 301 is available only to the Notice is hereby given that, pursuant examination of the Commission staff, to the Paperwork Reduction Act of 1995 Dated: January 28, 2014. state securities authorities, and the (44 U.S.C. 3501 et seq.), the Securities Kevin M. O’Neill, SROs. Subject to the provisions of the and Exchange Commission Deputy Secretary. Freedom of Information Act, 5 U.S.C. (‘‘Commission’’) has submitted to the [FR Doc. 2014–02144 Filed 1–31–14; 8:45 am] § 522 (‘‘FOIA’’), and the Commission’s Office of Management and Budget BILLING CODE 8011–01–P rules thereunder (17 CFR (‘‘OMB’’) a request for extension of the 200.80(b)(4)(iii)), the Commission does previously approved collection of not generally publish or make available information discussed below. SECURITIES AND EXCHANGE information contained in any reports, Rule 15b11–1 (17 CFR 240.15b11–1) COMMISSION summaries, analyses, letters, or requires that futures commission merchants and introducing brokers [Investment Company Act Release No. memoranda arising out of, in 30895; File No. 812–14182] anticipation of, or in connection with an registered with the Commodity Futures examination or inspection of the books Trading Commission that conduct a The Ohio National Life Insurance and records of any person or any other business in security futures products Company, et al.; Notice of Application investigation. must notice-register as broker-dealers Regulation ATS requires alternative pursuant to Section 15(b)(11)(A) of the January 28, 2014. trading systems to preserve any records, Securities Exchange Act of 1934 (15 AGENCY: Securities and Exchange for at least three years, made in the U.S.C. 78a et seq.). Form BD–N (17 CFR Commission (the ‘‘Commission’’). process of complying with the systems 249.501b) is the Form by which these ACTION: Notice. capacity, integrity, and security entities must notice register with the requirements. Commission. SUMMARY: Notice of an application for An agency may not conduct or The total annual burden imposed by an order under section 12(d)(1)(J) of the sponsor, and a person is not required to Rule 15b11–1 and Form BD–N is Investment Company Act of 1940 (the respond to, a collection of information approximately 16 hours, based on ‘‘Act’’), for an exemption from sections unless it displays a currently valid OMB approximately 60 responses (2 initial 12(d)(1)(A) and (B) of the Act, under control number. filings + 58 amendments). Each initial sections 6(c) and 17(b) of the Act for an The public may view background filing requires approximately 30 exemption from section 17(a) of the Act, documentation for this information minutes to complete and each and under section 6(c) of the Act for an collection at the following Web site: amendment requires approximately 15 exemption from rule 12d1–2(a) under www.reginfo.gov. Comments should be minutes to complete. There is no annual the Act. Summary of the Application: directed to: (i) Desk Officer for the cost burden. Applicants request an order that would Securities and Exchange Commission, The Commission will use the (a) permit certain series of registered Office of Information and Regulatory information collected pursuant to Rule open-end management investment Affairs, Office of Management and 15b11–1 to understand the market for companies to acquire shares of other Budget, Room 10102, New Executive securities futures product and fulfill its registered open-end management Office Building, Washington, DC 20503, regulatory obligations. investment companies and unit or by sending an email to: Shagufta_ Completing and filing Form BD–N is investment trusts (‘‘UITs’’) that are [email protected]; and (ii) Thomas mandatory in order for an eligible within or outside the same ‘‘group of

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investment companies,’’ as defined in Applicants’ Representations of Funds (the ‘‘Unaffiliated Investment section 12(d)(1)(G)(ii) of the Act, as the 1. The Fund is a Maryland Companies’’ and ‘‘Unaffiliated Trusts,’’ acquiring company and (b) permit corporation registered under the Act as respectively, and together, the 2 certain series of registered open-end an open-end management investment ‘‘Unaffiliated Funds’’); (b) the management investment companies company and is comprised of multiple Unaffiliated Investment Companies, relying on rule 12d1–2 under the Act to portfolios, each of which has its own their principal underwriters and any invest in certain financial instruments. investment objective, policies and broker or dealer registered under the Applicants: The Ohio National Life restrictions.1 Shares of the Portfolios are Securities Exchange Act of 1934, as Insurance Company (‘‘ONLIC’’), Ohio not offered directly to the public. Shares amended (the ‘‘Exchange Act’’, and any National Life Assurance Corporation of the Portfolios are offered through such broker or dealer, a ‘‘Broker’’), to sell shares of the Unaffiliated (‘‘ONLAC’’), National Security Life and separate accounts that are registered as Investment Companies to the Funds of Annuity Company (‘‘National Security,’’ UITs under the Act (‘‘Registered Funds in excess of the limitations in and collectively with ONLIC and Separate Accounts’’) or accounts that section 12(d)(1)(B) of the Act; (c) the ONLAC, the ‘‘Insurance Companies’’) are exempt from registration under the Funds of Funds to acquire shares of (including any insurance company Act (‘‘Unregistered Separate Accounts,’’ certain other Portfolios in the same controlling, controlled by or under and together with the Registered ‘‘group of investment companies,’’ as common control with the Insurance Separate Accounts, ‘‘Separate defined in section 12(d)(1)(G)(ii) of the Companies), Ohio National Investments, Accounts’’) of the Insurance Companies Act, as the Funds of Funds (the Inc. (the ‘‘Adviser’’), and Ohio National and serve as the underlying funding ‘‘Affiliated Funds,’’ and together with Fund, Inc. (the ‘‘Fund’’) (collectively, vehicles for the variable life insurance ‘‘Applicants’’). the Unaffiliated Funds, the ‘‘Underlying contracts and variable annuity contracts Funds’’); 3 and (d) the Affiliated Funds, (the ‘‘Contracts’’) issued by the DATES: Filing Dates: The application was their principal underwriters and any filed on July 23, 2013 and amended on Insurance Companies. Shares of the Broker to sell shares of the Affiliated December 13, 2013. Portfolios may also be offered to certain Funds to the Funds of Funds in excess of the general accounts of the Insurance of the limitations in section 12(d)(1)(B) Hearing or Notification of Hearing: An Companies or to other Portfolios. order granting the application will be of the Act. Applicants also request an 2. The Adviser is an Ohio corporation order under sections 6(c) and 17(b) of issued unless the Commission orders a registered as an investment adviser hearing. Interested persons may request the Act exempting the transactions under the Investment Advisers Act of described in (a) through (d) above from a hearing by writing to the 1940, as amended (the ‘‘Advisers Act’’) Commission’s Secretary and serving section 17(a) of the Act to the extent and serves as investment adviser to the necessary to permit an Underlying Fund Applicants with a copy of the request, Fund and each Portfolio. The Adviser is personally or by mail. Hearing requests that is an affiliated person of a Fund of a wholly-owned subsidiary of Ohio Funds to sell its shares to, and redeem should be received by the Commission National Life. by 5:30 p.m. on February 24, 2014, and its shares from, the Fund of Funds. 3. ONLIC is organized as a stock life 5. Applicants also request an should be accompanied by proof of insurance company under the laws of service on Applicants in the form of an exemption to the extent necessary to Ohio and is a wholly-owned subsidiary permit a Fund of Funds that invests in affidavit or, for lawyers, a certificate of of Ohio National Financial Services, Inc. service. Hearing requests should state Underlying Funds in reliance on section ONLAC is organized as a stock life 12(d)(1)(G) of the Act (a ‘‘Section the nature of the writer’s interest, the insurance company under the laws of 12(d)(1)(G) Fund of Funds’’), and that is reason for the request, and the issues Ohio and is a wholly-owned stock eligible to invest in securities (as contested. Persons who wish to be subsidiary of ONLIC. National Security defined in section 2(a)(36) of the Act) in notified of a hearing may request is incorporated under the laws of the reliance on rule 12d1–2 under the Act, notification by writing to the State of New York and is also a wholly- to also invest, to the extent consistent Commission’s Secretary. owned stock subsidiary of ONLIC. with its investment objective, policies, ADDRESSES: The Commission: Secretary, 4. Applicants request relief to permit: strategies and limitations, in financial U.S. Securities and Exchange (a) Certain Portfolios (each, a ‘‘Fund of instruments that may not be securities Commission, 100 F Street NE., Funds,’’ and collectively, the ‘‘Funds of within the meaning of section 2(a)(36) of Washington, DC 20549–1090; Funds’’) to acquire shares of registered the Act (‘‘Other Investments’’). Applicants: Kimberly A. Plante, Esq., open-end management investment Ohio National Fund, Inc., One Financial companies and UITs that are not part of 2 Certain of the Unaffiliated Funds may have Way, Montgomery, OH 45242. the same ‘‘group of investment received exemptive relief or are otherwise companies,’’ as defined in section permitted to list and trade their shares on a national FOR FURTHER INFORMATION CONTACT: securities exchange at negotiated prices (‘‘ETFs’’). Kay- 12(d)(1)(G)(ii) of the Act, as the Funds Mario Vobis, Senior Counsel, at (202) 3 Certain of the Underlying Funds currently 551–6728, or Mary Kay Frech, Branch pursue, or may in the future pursue, their 1 Applicants request that the order extend to any investment objectives through a master-feeder Chief, at (202) 551–6821 (Division of existing or future portfolio of the Fund and any arrangement in reliance on section 12(d)(1)(E) of the Investment Management, Chief existing or future registered open-end management Act. In accordance with condition 12, a Fund of Counsel’s Office). investment company or portfolio thereof that Funds may not invest in an Underlying Fund that currently or subsequently is part of the same ‘‘group operates as a feeder fund unless the feeder fund is SUPPLEMENTARY INFORMATION: The of investment companies,’’ as defined in section part of the same ‘‘group of investment companies,’’ following is a summary of the 12(d)(1)(G)(ii) of the Act, as the Fund and is, or will as defined in section 12(d)(1)(G)(ii) of the Act, as be, advised by the Adviser or any other investment its corresponding master fund or the Fund of application. The complete application adviser controlling, controlled by, or under Funds. If a Fund of Funds invests in an Affiliated may be obtained via the Commission’s common control with the Adviser (together with the Fund that operates as a feeder fund and the Web site by searching for the file existing portfolios of the Fund, the ‘‘Portfolios’’). corresponding master fund is not within the same number, or for an applicant using the All entities that currently intend to rely on the ‘‘group of investment companies,’’ as defined in requested order are named as Applicants and any section 12(d)(1)(G)(ii) of the Act, as the Fund of ‘‘Company’’ name box, at http:// other entity that relies on the order in the future Funds and Affiliated Fund, the master fund would www.sec.gov/search/search.htm or by will comply with the terms and conditions of the be an Unaffiliated Fund for purposes of the calling (202) 551–8090. application. application and its conditions.

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Applicants’ Legal Analysis or its affiliated persons over the 7. As an additional assurance that an Underlying Funds. Applicants note that Unaffiliated Investment Company A. Investments in Underlying Funds— the concerns about undue influence do understands the implications of an Section 12(d)(1) not arise in connection with a Fund of investment by a Fund of Funds under 1. Section 12(d)(1)(A) of the Act Funds’ investment in the Affiliated the requested order, prior to an prohibits a registered investment Funds, since the Affiliated Funds are investment in the shares of the company (an ‘‘acquiring company’’) part of the same ‘‘group of investment Unaffiliated Investment Company in from acquiring shares of another companies,’’ as defined in section excess of the limit in section investment company (an ‘‘acquired 12(d)(1)(G)(ii) of the Act, as the Funds 12(d)(1)(A)(i) of the Act, the Fund of company’’) if the securities represent of Funds. To limit the control that a Funds and the Unaffiliated Investment more than 3% of the total outstanding Fund of Funds or its affiliated persons Company will execute an agreement voting stock of the acquired company, may have over an Unaffiliated Fund, (the ‘‘Participation Agreement’’) stating, more than 5% of the total assets of the Applicants submit that condition 1 without limitation, that their respective acquiring company, or, together with prohibits the Group 4 and the Sub- boards of directors or trustees (for any the securities of any other investment Adviser Group 5 from controlling entity, the ‘‘Board’’) and their companies, more than 10% of the total (individually or in the aggregate) an investment advisers understand the assets of the acquiring company. Section Unaffiliated Fund within the meaning of terms and conditions of the order and 12(d)(1)(B) of the Act prohibits a section 2(a)(9) of the Act. agree to fulfill their respective registered open-end investment 5. Applicants further state that responsibilities under the order. company, its principal underwriter and condition 2 precludes a Fund of Funds, Applicants note that an Unaffiliated any Broker from selling the shares of the the Adviser, any Sub-Adviser, promoter Investment Company (other than an ETF investment company to another or principal underwriter of a Fund of whose shares are purchased by a Fund investment company if the sale will Funds, and any person controlling, of Funds in the secondary market) will cause the acquiring company to own controlled by or under common control retain its right at all times to reject any more than 3% of the acquired with any of those entities (each, a ‘‘Fund investment by a Fund of Funds.7 company’s voting stock, or if the sale of Funds Affiliate’’) from taking 8. Applicants do not believe that the will cause more than 10% of the advantage of an Unaffiliated Fund, with proposed arrangement will result in acquired company’s voting stock to be respect to transactions between the excessive layering of fees. With respect owned by investment companies Fund of Funds or a Fund of Funds to investment advisory fees, Applicants generally. Affiliate and the Unaffiliated Fund or state that, in connection with the 2. Section 12(d)(1)(J) of the Act the Unaffiliated Fund’s investment approval of any investment advisory provides that the Commission may adviser(s), sponsor, promoter, principal contract under section 15 of the Act, the exempt any person, security, or underwriter and any person controlling, Board of each Fund of Funds, including transaction, or any class or classes of controlled by or under common control a majority of the trustees who are not persons, securities or transactions, from with any of those entities (each, an ‘‘interested persons,’’ as defined in any provision of section 12(d)(1) of the ‘‘Unaffiliated Fund Affiliate’’). section 2(a)(19) of the Act (for any Act if the exemption is consistent with 6. Condition 5 precludes a Fund of Board, the ‘‘Disinterested Trustees’’), the public interest and the protection of Funds or Fund of Funds Affiliate will find that the advisory or investors. Applicants seek an exemption (except to the extent it is acting in its management fees charged to a Fund of under section 12(d)(1)(J) of the Act from capacity as an investment adviser to an Funds under the advisory contract are the limitations of sections 12(d)(1)(A) Unaffiliated Investment Company or based on services provided that are in and (B) of the Act to the extent sponsor to an Unaffiliated Trust) from addition to, rather than duplicative of, necessary to permit the Funds of Funds causing an Unaffiliated Fund to services provided pursuant to any to acquire shares of the Underlying purchase a security in an offering of Underlying Fund’s advisory contract(s). Funds in excess of the limits set forth securities during the existence of any Applicants further state that the Adviser in section 12(d)(1)(A) of the Act and to underwriting or selling syndicate of will waive fees otherwise payable to it permit the Unaffiliated Investment which a principal underwriter is an by a Fund of Funds in an amount at Companies and Affiliated Funds, their Underwriting Affiliate (an ‘‘Affiliated least equal to any compensation principal underwriters and any Broker Underwriting’’).6 (including fees received pursuant to any to sell shares of the Unaffiliated plan adopted by an Unaffiliated Investment Companies and Affiliated 4 The Adviser and any person controlling, Investment Company pursuant to rule Funds to the Funds of Funds in excess controlled by or under common control with the 12b–1 under the Act) received from an of the limits set forth in section Adviser, any investment company and any issuer that would be an investment company but for Unaffiliated Fund by the Adviser, or an 12(d)(1)(B) of the Act. section 3(c)(1) or section 3(c)(7) of the Act advised affiliated person of the Adviser, other 3. Applicants state that the proposed or sponsored by the Adviser or any person than any advisory fees paid to the arrangement will not give rise to the controlling, controlled by or under common control Adviser or an affiliated person of the policy concerns underlying sections with the Adviser are, collectively, the ‘‘Group.’’ 5 Adviser by an Unaffiliated Investment 12(d)(1)(A) and (B) of the Act, which Any investment adviser within the meaning of section 2(a)(20)(B) of the Act to a Fund of Funds Company, in connection with the include concerns about undue influence (each, a ‘‘Sub-Adviser’’), any person controlling, by a Fund of Funds or its affiliated controlled by or under common control with a Sub- a person of which any such officer, director, persons over the Underlying Funds, Adviser, and any investment company or issuer that Adviser, Sub-Adviser, member of an advisory excessive layering of fees, and overly would be an investment company but for section board, or employee is an affiliated person. However, 3(c)(1) or 3(c)(7) of the Act (or portion of such any person whose relationship to the Unaffiliated complex fund structures. Accordingly, investment company or issuer) advised or Fund is covered by section 10(f) of the Act is not Applicants believe that the requested sponsored by a Sub-Adviser or any person an Underwriting Affiliate. exemption is consistent with the public controlling, controlled by or under common control 7 An Unaffiliated Investment Company, including interest and the protection of investors. with the Sub-Adviser are, collectively, the ‘‘Sub- an ETF, would retain its right to reject any initial Adviser Group.’’ investment by a Fund of Funds in excess of the 4. Applicants state that the proposed 6 An ‘‘Underwriting Affiliate’’ is an officer, limit in section 12(d)(1)(A)(i) of the Act by structure will not result in the exercise director, member of an advisory board, Adviser, declining to execute the Participation Agreement of undue influence by a Fund of Funds Sub-Adviser, or employee of the Fund of Funds, or with the Fund of Funds.

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investment by the Fund of Funds in the Acquire securities of one or more in the public interest and consistent Unaffiliated Fund. investment companies for short-term with the protection of investors and the 9. Applicants state that, with respect cash management purposes, or (ii) purposes fairly intended by the policy to Registered Separate Accounts that engage in interfund borrowing and and provisions of the Act. invest in a Fund of Funds, no sales load lending transactions. 4. Applicants submit that the will be charged at the Fund of Funds proposed transactions satisfy the level or at the Underlying Fund level. B. Investments in Underlying Funds— standards for relief under sections 17(b) Other sales charges and service fees, as Section 17(a) and 6(c) of the Act, as the terms are fair defined in Rule 2830 of the NASD 1. Section 17(a) of the Act generally and reasonable and do not involve Conduct Rules (‘‘NASD Conduct Rule prohibits sales or purchases of securities overreaching. Applicants state that the 2830’’),8 if any, will only be charged at between a registered investment terms upon which an Underlying Fund the Fund of Funds level or at the company and its affiliated persons or will sell its shares to or purchase its Underlying Fund level, not both. With affiliated persons of such persons. shares from a Fund of Funds will be respect to other investments in a Fund Section 2(a)(3) of the Act defines an based on the net asset value of each of Funds, any sales charges and/or ‘‘affiliated person’’ of another person to Underlying Fund.10 Applicants also service fees charged with respect to include (a) any person directly or state that the proposed transactions will shares of the Fund of Funds will not indirectly owning, controlling, or be consistent with the policies of each exceed the limits applicable to funds of holding with power to vote, 5% or more Fund of Funds and Underlying Fund, funds as set forth in NASD Conduct of the outstanding voting securities of and with the general purposes of the Rule 2830. the other person; (b) any person 5% or Act. 10. Applicants represent that each more of whose outstanding voting C. Other Investments by Section Fund of Funds will represent in the securities are directly or indirectly 12(d)(1)(G) Funds of Funds Participation Agreement that no owned, controlled, or held with power Insurance Company sponsoring a to vote by the other person; and (c) any 1. Section 12(d)(1)(G) of the Act Registered Separate Account funding person directly or indirectly controlling, provides that section 12(d)(1) will not Contracts will be permitted to invest in controlled by, or under common control apply to securities of an acquired the Fund of Funds unless the Insurance with the other person. company purchased by an acquiring Company has certified to the Fund of 2. Applicants state that the Funds of company if: (i) The acquiring company Funds that the aggregate of all fees and Funds and the Affiliated Funds may be and acquired company are part of the charges associated with each Contract deemed to be under common control same ‘‘group of investment companies,’’ that invests in the Fund of Funds, and therefore affiliated persons of one as defined in section 12(d)(1)(G)(ii) of including fees and charges at the another. Applicants also state that the the Act; (ii) the acquiring company Separate Account, Fund of Funds, and Funds of Funds and the Underlying holds only securities of acquired Underlying Fund levels, are reasonable Funds may be deemed to be affiliated companies that are part of the same in relation to the services rendered, the persons of one another if a Fund of ‘‘group of investment companies,’’ as expenses expected to be incurred, and Funds acquires 5% or more of an defined in section 12(d)(1)(G)(ii) of the the risks assumed by the Insurance Underlying Fund’s outstanding voting Act, government securities, and short- Company. securities. In light of these and other term paper; (iii) the aggregate sales loads 11. Applicants state that the proposed possible affiliations, section 17(a) of the and distribution-related fees of the arrangement will not create an overly Act could prevent an Underlying Fund acquiring company and the acquired complex fund structure. Applicants note from selling shares to, and redeeming company are not excessive under rules 9 that an Underlying Fund will be shares from, a Fund of Funds. adopted pursuant to section 22(b) or prohibited from acquiring securities of 3. Section 17(b) of the Act authorizes section 22(c) of the Act by a securities any other investment company or the Commission to grant an order association registered under section 15A company relying on section 3(c)(1) or permitting a transaction otherwise of the Exchange Act or by the 3(c)(7) of the Act in excess of the limits prohibited by section 17(a) of the Act if Commission; and (iv) the acquired contained in section 12(d)(1)(A) of the it finds that (a) the terms of the company has a policy that prohibits it Act, except to the extent that such proposed transaction are fair and from acquiring securities of registered Underlying Fund: (a) Acquires such reasonable and do not involve open-end management investment securities in compliance with section overreaching on the part of any person companies or registered UITs in reliance concerned; (b) the proposed transaction 12(d)(1)(E) of the Act and either is an on section 12(d)(1)(F) or (G) of the Act. is consistent with the policies of each Affiliated Fund or is in the same ‘‘group 2. Rule 12d1–2 under the Act permits registered investment company of investment companies,’’ as defined in a registered open-end investment involved; and (c) the proposed section 12(d)(1)(G)(ii) of the Act, as its company or a registered UIT that relies transaction is consistent with the corresponding master fund; (b) receives on section 12(d)(1)(G) of the Act to general purposes of the Act. Section 6(c) securities of another investment of the Act permits the Commission to 10 company as a dividend or as a result of To the extent purchases and sales of shares of exempt any person or transactions from an ETF occur in the secondary market (and not a plan of reorganization of a company any provision of the Act if such through principal transactions directly between a (other than a plan devised for the Fund of Funds and an ETF), relief from section exemption is necessary or appropriate purpose of evading section 12(d)(1) of 17(a) of the Act would not be necessary. The requested relief is intended to cover, however, the Act); or (c) acquires (or is deemed 9 Applicants acknowledge that receipt of any transactions directly between ETFs and a Fund of to have acquired) securities of another compensation by (a) an affiliated person of a Funds Funds. Applicants are not seeking relief from investment company pursuant to of Funds, or an affiliated person of such person, for section 17(a) for, and the requested relief will not exemptive relief from the Commission the purchase by the Fund of Funds of shares of an apply to, transactions where an ETF could be Underlying Fund or (b) an affiliated person of an deemed an affiliated person, or an affiliated person permitting such Underlying Fund to: (i) Underlying Fund, or an affiliated person of such of an affiliated person, of a Fund of Funds because person, for the sale by the Underlying Fund of its the investment adviser to the ETF or an entity 8 Any references to NASD Conduct Rule 2830 shares to a Fund of Funds may be prohibited by controlling, controlled by or under common control include any successor or replacement rule to NASD section 17(e)(1) of the Act. The Participation with the investment adviser to the ETF is an Conduct Rule 2830 that may be adopted by FINRA. Agreement also will include this acknowledgement. investment adviser to the Fund of Funds.

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acquire, in addition to securities issued becomes a holder of more than 25% of the Unaffiliated Investment Company, by another registered investment the outstanding voting securities of the including a majority of the Disinterested company in the same group of Unaffiliated Fund, then the Group or the Trustees, will determine that any investment companies, government Sub-Adviser Group (except for any consideration paid by the Unaffiliated securities, and short-term paper: (1) member of the Group or the Sub- Investment Company to a Fund of Securities issued by an investment Adviser Group that is a Separate Funds or a Fund of Funds Affiliate in company that is not in the same group Account) will vote its shares of the connection with any services or of investment companies, when the Unaffiliated Fund in the same transactions: (a) Is fair and reasonable in acquisition is in reliance on section proportion as the vote of all other relation to the nature and quality of the 12(d)(1)(A) or 12(d)(1)(F) of the Act; (2) holders of the Unaffiliated Fund’s services and benefits received by the securities (other than securities issued shares. A Registered Separate Account Unaffiliated Investment Company; (b) is by an investment company); and (3) will seek voting instructions from its within the range of consideration that securities issued by a money market Contract owners and will vote its shares the Unaffiliated Investment Company fund, when the investment is in reliance of an Unaffiliated Fund in accordance would be required to pay to another on rule 12d1–1 under the Act. For the with the instructions received and will unaffiliated entity in connection with purposes of rule 12d1–2, ‘‘securities’’ vote those shares for which no the same services or transactions; and means any security as defined in section instructions were received in the same (c) does not involve overreaching on the 2(a)(36) of the Act. proportion as the shares for which part of any person concerned. This 3. Applicants state that the proposed instructions were received. An condition does not apply with respect to arrangement would comply with the Unregistered Separate Account will any services or transactions between an provisions of rule 12d1–2 under the Act, either: (i) Vote its shares of the Unaffiliated Investment Company and but for the fact that the Section Unaffiliated Fund in the same its investment adviser(s), or any person 12(d)(1)(G) Funds of Funds may invest proportion as the vote of all other controlling, controlled by or under a portion of their assets in Other holders of the Unaffiliated Fund’s common control with such investment Investments. Applicants request an shares; or (ii) seek voting instructions adviser(s). order under section 6(c) of the Act for from its Contract owners and vote its 5. No Fund of Funds or Fund of an exemption from rule 12d1–2(a) to shares in accordance with the Funds Affiliate (except to the extent it allow the Section 12(d)(1)(G) Funds of instructions received and vote those is acting in its capacity as an investment Funds to invest in Other Investments. shares for which no instructions were adviser to an Unaffiliated Investment Applicants assert that permitting the received in the same proportion as the Company or sponsor to an Unaffiliated Section 12(d)(1)(G) Funds of Funds to shares for which instructions were Trust) will cause an Unaffiliated Fund invest in Other Investments as described received. This condition will not apply to purchase a security in any Affiliated in the application would not raise any to a Sub-Adviser Group with respect to Underwriting. of the concerns that the requirements of an Unaffiliated Fund for which the Sub- 6. The Board of an Unaffiliated section 12(d)(1) of the Act were Adviser or a person controlling, Investment Company, including a designed to address. controlled by, or under common control majority of the Disinterested Trustees, 4. Consistent with its fiduciary with the Sub-Adviser acts as the will adopt procedures reasonably obligations under the Act, each Section investment adviser within the meaning designed to monitor any purchases of 12(d)(1)(G) Fund of Funds’ Board will of section 2(a)(20)(A) of the Act (in the securities by the Unaffiliated Investment review the advisory fees charged by the case of an Unaffiliated Investment Company in an Affiliated Underwriting, Section 12(d)(1)(G) Fund of Funds’ Company) or as the sponsor (in the case once an investment by a Fund of Funds investment adviser(s) to ensure that the of an Unaffiliated Trust). in the securities of the Unaffiliated fees are based on services provided that 2. No Fund of Funds or Fund of Investment Company exceeds the limit are in addition to, rather than Funds Affiliate will cause any existing of section 12(d)(1)(A)(i) of the Act, duplicative of, services provided or potential investment by the Fund of including any purchases made directly pursuant to the advisory agreement of Funds in an Unaffiliated Fund to from an Underwriting Affiliate. The any investment company in which the influence the terms of any services or Board of the Unaffiliated Investment Section 12(d)(1)(G) Fund of Funds may transactions between the Fund of Funds Company will review these purchases invest. or a Fund of Funds Affiliate and the periodically, but no less frequently than Unaffiliated Fund or an Unaffiliated annually, to determine whether the Applicants’ Conditions Fund Affiliate. purchases were influenced by the Applicants agree that the order 3. The Board of each Fund of Funds, investment by the Fund of Funds in the granting the requested relief shall be including a majority of the Disinterested Unaffiliated Investment Company. The subject to the following conditions: Trustees, will adopt procedures Board of the Unaffiliated Investment reasonably designed to assure that the Company will consider, among other Investments in Underlying Funds by Adviser and any Sub-Adviser are things, (a) whether the purchases were Funds of Funds conducting the investment program of consistent with the investment 1. The members of the Group will not the Fund of Funds without taking into objectives and policies of the control (individually or in the aggregate) account any consideration received by Unaffiliated Investment Company; (b) an Unaffiliated Fund within the the Fund of Funds or a Fund of Funds how the performance of securities meaning of section 2(a)(9) of the Act. Affiliate from an Unaffiliated Fund or purchased in an Affiliated Underwriting The members of a Sub-Adviser Group an Unaffiliated Fund Affiliate in compares to the performance of will not control (individually or in the connection with any services or comparable securities purchased during aggregate) an Unaffiliated Fund within transactions. a comparable period of time in the meaning of section 2(a)(9) of the Act. 4. Once an investment by a Fund of underwritings other than Affiliated If, as a result of a decrease in the Funds in the securities of an Underwritings or to a benchmark such outstanding voting securities of an Unaffiliated Investment Company as a comparable market index; and (c) Unaffiliated Fund, the Group or a Sub- exceeds the limit of section whether the amount of securities Adviser Group, each in the aggregate, 12(d)(1)(A)(i) of the Act, the Board of purchased by the Unaffiliated

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Investment Company in Affiliated Agreement, and the list with any company or company relying on section Underwritings and the amount updated information for the duration of 3(c)(1) or 3(c)(7) of the Act in excess of purchased directly from an the investment and for a period of not the limits contained in section Underwriting Affiliate have changed less than six years thereafter, the first 12(d)(1)(A) of the Act, except to the significantly from prior years. The two years in an easily accessible place. extent that such Underlying Fund (a) Board of the Unaffiliated Investment 9. Before approving any advisory acquires such securities in compliance Company will take any appropriate contract under section 15 of the Act, the with section 12(d)(1)(E) of the Act and actions based on its review, including, Board of each Fund of Funds, including either is an Affiliated Fund or is in the if appropriate, the institution of a majority of the Disinterested Trustees, same ‘‘group of investment companies,’’ procedures designed to assure that shall find that the advisory fees charged as defined in section 12(d)(1)(G)(ii) of purchases of securities in Affiliated to the Fund of Funds under the advisory the Act, as its corresponding master Underwritings are in the best interest of contract are based on services provided fund; (b) receives securities of another shareholders. that are in addition to, rather than investment company as a dividend or as 7. Each Unaffiliated Investment duplicative of, services provided under a result of a plan of reorganization of a Company will maintain and preserve the advisory contract(s) of any company (other than a plan devised for permanently in an easily accessible Underlying Fund in which the Fund of the purpose of evading section 12(d)(1) place a written copy of the procedures Funds may invest. Such finding, and the of the Act); or (c) acquires (or is deemed described in the preceding condition, basis upon which the finding was made, to have acquired) securities of another and any modifications to such will be recorded fully in the minute investment company pursuant to procedures, and will maintain and books of the appropriate Fund of Funds. exemptive relief from the Commission preserve for a period of not less than six 10. The Adviser will waive fees permitting such Underlying Fund to (i) years from the end of the fiscal year in otherwise payable to it by a Fund of acquire securities of one or more which any purchase in an Affiliated Funds in an amount at least equal to any investment companies for short-term Underwriting occurred, the first two compensation (including fees received cash management purposes, or (ii) years in an easily accessible place, a pursuant to any plan adopted by an engage in interfund borrowing and written record of each purchase of Unaffiliated Investment Company under lending transactions. securities in an Affiliated Underwriting rule 12b–1 under the Act) received from once an investment by a Fund of Funds an Unaffiliated Fund by the Adviser, or Other Investments by Section in the securities of an Unaffiliated an affiliated person of the Adviser, other 12(d)(1)(G) Funds of Funds Investment Company exceeds the limit than any advisory fees paid to the 13. The Applicants will comply with of section 12(d)(1)(A)(i) of the Act, Adviser or its affiliated person by an all provisions of rule 12d1–2 under the setting forth (a) the party from whom Unaffiliated Investment Company, in Act, except for paragraph (a)(2) to the the securities were acquired, (b) the connection with the investment by the extent that it restricts any Section identity of the underwriting syndicate’s Fund of Funds in the Unaffiliated Fund. 12(d)(1)(G) Fund of Funds from members, (c) the terms of the purchase, Any Sub-Adviser will waive fees investing in Other Investments as and (d) the information or materials otherwise payable to the Sub-Adviser, described in the application. upon which the determinations of the directly or indirectly, by the Fund of Funds in an amount at least equal to any For the Commission, by the Division of Board of the Unaffiliated Investment Investment Management, pursuant to Company were made. compensation received by the Sub- delegated authority. 8. Prior to its investment in shares of Adviser, or an affiliated person of the Kevin M. O’Neill, an Unaffiliated Investment Company in Sub-Adviser, from an Unaffiliated Fund, excess of the limit of section other than any advisory fees paid to the Deputy Secretary. 12(d)(1)(A)(i) of the Act, the Fund of Sub-Adviser or an affiliated person of [FR Doc. 2014–02142 Filed 1–31–14; 8:45 am] Funds and the Unaffiliated Investment the Sub-Adviser by the Unaffiliated BILLING CODE 8011–01–P Company will execute a Participation Investment Company, in connection Agreement stating, without limitation, with the investment by the Fund of that their respective Boards and Funds in the Unaffiliated Fund made at SECURITIES AND EXCHANGE investment advisers understand the the direction of the Sub-Adviser. In the COMMISSION terms and conditions of the order and event that the Sub-Adviser waives fees, Sunshine Act Meeting agree to fulfill their respective the benefit of the waiver will be passed responsibilities under the order. At the through to the Fund of Funds. Notice is hereby given, pursuant to time of its investment in shares of an 11. With respect to Registered the provisions of the Government in the Unaffiliated Investment Company in Separate Accounts that invest in a Fund Sunshine Act, Public Law 94–409, that excess of the limit set forth in section of Funds, no sales load will be charged the Securities and Exchange 12(d)(1)(A)(i), a Fund of Funds will at the Fund of Funds level or at the Commission will hold a Closed Meeting notify the Unaffiliated Investment Underlying Fund level. Other sales on Thursday, February 6, 2014 at 2:00 Company of the investment. At such charges and service fees, as defined in p.m. time, the Fund of Funds will also NASD Conduct Rule 2830, if any, will Commissioners, Counsel to the transmit to the Unaffiliated Investment only be charged at the Fund of Funds Commissioners, the Secretary to the Company a list of the names of each level or at the Underlying Fund level, Commission, and recording secretaries Fund of Funds Affiliate and not both. With respect to other will attend the Closed Meeting. Certain Underwriting Affiliate. The Fund of investments in a Fund of Funds, any staff members who have an interest in Funds will notify the Unaffiliated sales charges and/or service fees the matters also may be present. Investment Company of any changes to charged with respect to shares of a Fund The General Counsel of the the list as soon as reasonably practicable of Funds will not exceed the limits Commission, or her designee, has after a change occurs. The Unaffiliated applicable to funds of funds set forth in certified that, in her opinion, one or Investment Company and the Fund of NASD Conduct Rule 2830. more of the exemptions set forth in 5 Funds will maintain and preserve a 12. No Underlying Fund will acquire U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) copy of the order, the Participation securities of any other investment and 17 CFR 200.402(a)(3), (5), (7), 9(ii)

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and (10), permit consideration of the Dated: January 29, 2014. (A) Self-Regulatory Organization’s scheduled matter at the Closed Meeting. Elizabeth M. Murphy, Statement of the Purpose of, and Commissioner Stein, as duty officer, Secretary. Statutory Basis for, the Proposed Rule voted to consider the items listed for the [FR Doc. 2014–02251 Filed 1–30–14; 11:15 am] Change Closed Meeting in a closed session. The subject matter of the Closed BILLING CODE 8011–01–P 1. Purpose Meeting will be: The purpose of the filing is to permit Settlement of an injunctive action; the receipt of inbound orders routed SECURITIES AND EXCHANGE institution and settlement of from affiliated exchanges in options COMMISSION administrative proceedings; and through NES. The Exchange filed a other matters relating to enforcement proposed rule change to use NES rather proceedings. [Release No. 34–71416; File No. SR-Phlx- than Nasdaq Options Services LLC At times, changes in Commission 2014–05] (‘‘NOS’’) for the outbound routing of priorities require alterations in the options orders and the Exchange also scheduling of meeting items. Self-Regulatory Organizations; updated its equities and options rules to For further information and to NASDAQ OMX PHLX LLC; Notice of reflect the use of a third party ascertain what, if any, matters have been Filing and Immediate Effectiveness of unaffiliated routing broker.3 added, deleted or postponed, please Proposed Rule Change to Inbound Now, the Exchange proposes to contact the Office of the Secretary at Routing of Options Orders continue to receive orders from its (202) 551–5400. affiliated exchanges. Specifically, the January 28, 2014. Dated: January 30, 2014. Exchange proposes to receive options Elizabeth M. Murphy, Pursuant to Section 19(b)(1) of the orders, through NES directly from the Secretary. Securities Exchange Act of 1934 options market of NASDAQ OMX BX, 1 2 4 [FR Doc. 2014–02339 Filed 1–30–14; 4:15 pm] (‘‘Act’’), and Rule 19b–4 thereunder, Inc. (‘‘BX’’) as well as from The NASDAQ Options Market (‘‘NOM’’),5 BILLING CODE 8011–01–P notice is hereby given that on January 15, 2014, NASDAQ OMX PHLX LLC under the same terms and conditions as (‘‘Phlx’’ or ‘‘Exchange’’) filed with the NOS currently does. BX and NASDAQ SECURITIES AND EXCHANGE Securities and Exchange Commission have filed to use NES for outbound COMMISSION (‘‘SEC’’ or ‘‘Commission’’) the proposed routing,6 as well as to receive options rule change as described in Items I, II, orders routed from PHLX through NES.7 Sunshine Act Meeting and III, below, which Items have been NOS and NES are broker-dealers and prepared by the Exchange. The members of NASDAQ, PHLX and BX. Notice is hereby given, pursuant to Currently, NOS provides all options the provisions of the Government in the Commission is publishing this notice to solicit comments on the proposed rule routing functions for BX Options, PHLX, Sunshine Act, Public Law 94–409, that and the NOM. BX, NASDAQ, NOM, change from interested persons. the Securities and Exchange PHLX and NOS are affiliates.8 Commission will hold an Open Meeting I. Self-Regulatory Organization’s Accordingly, the affiliate relationship on Wednesday, February 5, 2014 at 3:00 Statement of the Terms of Substance of between PHLX and NOS, its member, p.m., in the Auditorium, Room L–002. raises the issue of an exchange’s The subject matter of the Open the Proposed Rule Change affiliation with a member of such Meeting will be: The Exchange proposes to permit the exchange. Specifically, in connection • The Commission will consider Exchange to receive inbound orders in with prior filings, the Commission has whether to approve the 2014 budget of options routed through Nasdaq expressed concern that the affiliation of the Public Company Accounting Execution Services, LLC (‘‘NES’’) from an exchange with one of its members Oversight Board and will consider the affiliated exchanges, as described in raises the potential for unfair related annual accounting support fee competitive advantage and potential for the Board under Section 109 of the detail below. conflicts of interest between an Sarbanes-Oxley Act of 2002. II. Self-Regulatory Organization’s exchange’s self-regulatory obligations • The Commission will consider Statement of the Purpose of, and and its commercial interests.9 Similarly, whether to adopt rules revising the Statutory Basis for, the Proposed Rule disclosure, reporting, and offering Change 3 See SR–Phlx–2014–04. process for asset-backed securities. The 4 Securities Exchange Act Release No. 67956 revisions would require asset-backed In its filing with the Commission, the (June 13, 2013), 78 FR 36810 (June 19, 2013) (SR– issuers to provide enhanced disclosures Exchange included statements Phlx–2013–42). including information for certain asset concerning the purpose of and basis for 5 Securities Exchange Act Release No. 65399 classes about each asset in the (September 26, 2011), 76 FR 60955 (September 30, the proposed rule change and discussed 2011) (SR–Phlx–2011–111). NOM is a facility of underlying pool in a standardized, any comments it received on the The NASDAQ Stock Market LLC (‘‘NASDAQ’’). tagged format and revise the shelf proposed rule change. The text of these 6 See SR–BX–2014–003 and SR–NASDAQ–2014– offering process and eligibility criteria statements may be examined at the 007. 7 for asset-backed securities. places specified in Item IV below. The See SR–BX–2014–004 and SR–NASDAQ–2014– At times, changes in Commission 008. Exchange has prepared summaries, set 8 priorities require alterations in the See Securities Exchange Act Release Nos. 58324 forth in sections A, B, and C below, of (August 7, 2008), 73 FR 46936 (August 12, 2008) scheduling of meeting items. the most significant aspects of such (SR–BSE–2008–02; SR–BSE–2008–23; SR–BSE– For further information and to 2008–25; SR–BSECC–2008–01) (order approving ascertain what, if any, matters have been statements. NASDAQ OMX’s acquisition of BX); and 58179 added, deleted or postponed, please (July 17, 2008), 73 FR 42874 (July 23, 2008) (order approving NASDAQ OMX’s acquisition of PHLX). contact: 9 See Securities Exchange Act Release Nos. 59153 The Office of the Secretary at (202) 1 15 U.S.C. 78s(b)(1). (December 23, 2008), 73 FR 80485 (December 31, 551–5400. 2 17 CFR 240.19b–4. 2008) (SR–NASDAQ–2008–098); and 62736 (August

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under this proposal, the affiliate • Third, FINRA will provide a report allow the Exchange to continue to relationship between PHLX and NES to the Exchange’s chief regulatory receive inbound orders from an affiliate raises this issue. officer (‘‘CRO’’), on a quarterly basis, (NES rather than NOS), acting in its Recognizing that the Commission has that: (i) Quantifies all alerts (of which capacity as a facility of BX and previously expressed concern regarding FINRA is aware) that identify NES as a NASDAQ, in a manner consistent with the potential for conflicts of interest in participant that has potentially violated prior approvals and established instances where a member firm is Commission or Exchange rules, and (ii) protections. The Exchange believes that affiliated with an exchange of which it lists all investigations that identify NES these conditions establish mechanisms is a member, the Exchange previously as a participant that has potentially that protect the independence of the proposed, and the Commission violated Commission or Exchange rules. Exchange’s regulatory responsibility approved, limitations and conditions on • Fourth, the Exchange has in place with respect to NES, as well as ensure NOS’s affiliation with the Exchange.10 PHLX Rule 985(c), which requires The that NES cannot use any information it Also recognizing that the Commission NASDAQ OMX Group, Inc., as the may have because of its affiliation with has expressed concern regarding the holding company owning both the the Exchange to its advantage. Exchange and NES, to establish and potential for conflicts of interest in (B) Self-Regulatory Organization’s maintain procedures and internal instances where a member firm is Statement on Burden on Competition affiliated with an exchange to which it controls reasonably designed to ensure is routing orders, the Exchange that NES does not develop or implement The Exchange does not believe that previously proposed, and the changes to its system, based on non- the proposed rule change will impose Commission approved,11 NOS’s public information obtained regarding any burden on competition not affiliation with the Exchange to permit planned changes to the Exchange’s necessary or appropriate in furtherance the Exchange to accept inbound orders systems as a result of its affiliation with of the purposes of the Act. Receiving that NOS routes in its capacity as a the Exchange, until such information is orders through NES rather than NOS facility of BX and NASDAQ, subject to available generally to similarly situated does not raise any issues of intra-market certain limitations and conditions. The Exchange members, in connection with competition because it involves Exchange now proposes to permit PHLX the provision of inbound order routing inbound routing from an affiliated to accept inbound options orders that to the Exchange. exchange. Nor does it result in a burden NES (rather than NOS) routes in its By meeting the above conditions, the on competition among exchanges, capacity as a facility of BX and Exchange will have set up mechanisms because there are many competing options exchanges that provide routing NASDAQ, subject to the same that protect the independence of the services, including through an affiliate. limitations that currently apply to PHLX Exchange’s regulatory responsibility accepting inbound orders from BX and with respect to NES, as well as (C) Self-Regulatory Organization’s NOM through NOS, as follows: demonstrate that NES cannot use any Statement on Comments on the • First, the Exchange and FINRA information advantage it may have Proposed Rule Change Received From maintain a Regulatory Contract, as well because of its affiliation with the Members, Participants, or Others as an agreement pursuant to Rule 17d– Exchange. For several weeks, the Exchange has No written comments were either 2 under the Act (‘‘17d–2 Agreement’’).12 solicited or received. Pursuant to the Regulatory Contract and been working with the Financial the 17d–2 Agreement, FINRA will be Regulatory Authority (‘‘FINRA’’) and III. Date of Effectiveness of the allocated regulatory responsibilities to The Options Clearing Corporation Proposed Rule Change and Timing for review NES’s compliance with certain (‘‘OCC’’) to secure the necessary Commission Action Exchange rules.13 Pursuant to the approvals for NES to perform these Because the foregoing proposed rule Regulatory Contract, however, PHLX functions. The Exchange has now change does not: (i) Significantly affect retains ultimate responsibility for secured those approvals. The Exchange the protection of investors or the public enforcing its rules with respect to NES. seeks to complete this process and interest; (ii) impose any significant • Second, FINRA will monitor NES implement this proposal in January or burden on competition; and (iii) become for compliance with the Exchange’s February. operative for 30 days from the date on trading rules, and will collect and 2. Statutory Basis which it was filed, or such shorter time 14 maintain certain related information. The Exchange believes that its as the Commission may designate, it has become effective pursuant to Section proposal is consistent with Section 6(b) 17, 2010), 75 FR 51861 (August 23, 2010) (SR– 17 15 19(b)(3)(A)(ii) of the Act and NASDAQ–2010–100). See also Securities Exchange of the Act in general, and furthers the 16 subparagraph (f)(6) of Rule 19b–4 Act Release No. 58135 (July 10, 2008), 73 FR 40898 objectives of Section 6(b)(5) of the Act 18 (July 16, 2008) (SR–NASDAQ–2008–061) thereunder. in particular, in that it is designed to At any time within 60 days of the (Permitting NOS to be affiliated with PHLX). promote just and equitable principles of 10 filing of the proposed rule change, the See Securities Exchange Act Release No. 59995 trade, to remove impediments to and (May 28, 2009), 74 FR 26750 (June 3, 2009) (SR– Commission summarily may Phlx–2009–32). perfect the mechanism of a free and temporarily suspend such rule change if 11 See Securities Exchange Act Release No. 67956 open market and a national market it appears to the Commission that such (June 13, 2013), 77[sic] FR 36810 (June 19, 2013) system, and, in general to protect action is: (i) Necessary or appropriate in (SR–Phlx–2013–42). investors and the public interest, 12 the public interest; (ii) for the protection 17 CFR 240.17d–2. because the proposed rule change will 13 NES is also subject to independent oversight by FINRA, its designated examining authority, for 17 15 U.S.C. 78s(b)(3)(a)(ii). compliance with financial responsibility potentially violated applicable Commission or 18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– requirements. Exchange rules. The Exchange and FINRA will 4(f)(6) requires a self-regulatory organization to give 14 Pursuant to the Regulatory Contract, both retain these records in an easily accessible manner the Commission written notice of its intent to file FINRA and the Exchange will collect and maintain in order to facilitate any potential review conducted the proposed rule change at least five business days all alerts, complaints, investigations and by the Commission’s Office of Compliance prior to the date of filing of the proposed rule enforcement actions in which NES (in its capacity Inspections and Examinations. change, or such shorter time as designated by the as a facility of BX and Nasdaq routing orders to 15 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this PHLX) is identified as a participant that has 16 15 U.S.C. 78f(b)(5). requirement.

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of investors; or (iii) otherwise in 2014–05 and should be submitted on or However, OCC only receives matched furtherance of the purposes of the Act. before February 24, 2014. trades from exchanges so manual trade If the Commission takes such action, the For the Commission, by the Division of comparison and reconciliation by Commission shall institute proceedings Trading and Markets, pursuant to delegated clearing members no longer occurs. to determine whether the proposed rule authority.19 III. Discussion should be approved or disapproved. Kevin M. O’Neill, IV. Solicitation of Comments Deputy Secretary. Section 19(b)(2)(C) of the Act 4 directs [FR Doc. 2014–02132 Filed 1–31–14; 8:45 am] the Commission to approve a self- Interested persons are invited to BILLING CODE 8011–01–P regulatory organization’s proposed rule submit written data, views, and arguments concerning the foregoing, change if the Commission finds that including whether the proposed rule such proposed rule change is consistent SECURITIES AND EXCHANGE with the requirements of the Act and the change is consistent with the Act. COMMISSION Comments may be submitted by any of rules and regulations thereunder the following methods: [Release No. 34–71422; File No. SR–OCC– applicable to such organization. Section 2013–22] 17A(b)(3)(F) of the Act 5 requires, among Electronic Comments other things, that the rules of a clearing • Use the Commission’s Internet Self-Regulatory Organizations; agency registered with the Commission comment form (http://www.sec.gov/ Options Clearing Corporation; Order foster cooperation and coordination rules/sro.shtml); or Approving Proposed Rule Change To with persons engaged in the clearance Make a Non-Material Housekeeping • Send an email to rule- and settlement of securities transactions Rule Change So That OCC’s [email protected]. Please include File and remove impediments to and perfect Membership Qualifications Accurately Number SR–Phlx–2014–05 on the the mechanism of a national system for Reflect Current Operational Practices subject line. the prompt and accurate clearance and Paper Comments January 28, 2014. settlement of securities transactions. The Commission finds that the • Send paper comments in triplicate I. Introduction proposed rule change is consistent with to Elizabeth M. Murphy, Secretary, On December 6, 2013, the Options Section 17A(b)(3)(F) of the Act.6 The Securities and Exchange Commission, Clearing Corporation (‘‘OCC’’) filed with Commission believes that these 100 F Street NE., Washington, DC the Securities and Exchange clarifications will foster cooperation and 20549–1090. Commission (‘‘Commission’’) proposed coordination with persons engaged in All submissions should refer to File rule change SR–OCC–2013–22 pursuant the clearance and settlement of Number SR–Phlx–2014–05. This file to Section 19(b)(1) of the Securities securities transactions and remove number should be included on the Exchange Act of 1934 (‘‘Act’’) 1 and Rule 2 impediments to and perfect the subject line if email is used. To help the 19b–4 thereunder. The proposed rule Commission process and review your change was published for comment in mechanism of a national system for the comments more efficiently, please use the Federal Register on December 23, prompt and accurate clearance and only one method. The Commission will 2013.3 The Commission received no settlement of securities transactions by post all comments on the Commission’s comment letters in response to the ensuring that OCC’s By-Laws and Internet Web site (http://www.sec.gov/ proposed rule change. For the reasons membership standards reference only rules/sro.shtml). Copies of the discussed below, the Commission is necessary requirements for operational submission, all subsequent approving the proposed rule change. capacity and current applicable industry standards. amendments, all written statements II. Description with respect to the proposed rule IV. Conclusion change that are filed with the The rule change modifies OCC’s Commission, and all written membership standards to reflect current On the basis of the foregoing, the operational practices. Prior to electronic communications relating to the Commission concludes that the trading, clearing members were required proposed rule change between the proposal is consistent with the to have the operational capacity to Commission and any person, other than requirements of the Act, particularly the manually compare trades and reconcile those that may be withheld from the requirements of Section 17A of the Act,7 public in accordance with the unconfirmed and advisory trades, in accordance with applicable exchange and the rules and regulations provisions of 5 U.S.C. 552, will be thereunder. available for Web site viewing and rules and procedures, on a timely and printing in the Commission’s Public efficient basis so that financial markets, It is therefore ordered, pursuant to Reference Room, 100 F Street NE., and specifically clearing operations, Section 19(b)(2) of the Act,8 that the Washington, DC 20549, on official functioned in a prompt and accurate proposed rule change (File No. SR– business days between the hours of manner. Accordingly, Article V, Section OCC–2013–22) be and hereby is 10:00 a.m. and 3:00 p.m. Copies of the 1, Interpretations and Policies .02(b) of approved.9 filing also will be available for OCC’s By-Laws required clearing inspection and copying at the principal member applicants to have such 4 15 U.S.C. 78s(b)(2)(C). office of the Exchange. All comments operational capacity as a condition to 5 15 U.S.C. 78q–1(b)(3)(F). received will be posted without change; admission as a clearing member. 6 15 U.S.C. 78q–1(b)(3)(B) and (F). the Commission does not edit personal 7 15 U.S.C. 78q–1. identifying information from 19 17 CFR 200.30–3(a)(12). 1 8 15 U.S.C. 78s(b)(2). submissions. You should submit only 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 9 In approving the proposed rule change, the information that you wish to make 3 Securities Exchange Act Release No. 71090 (Dec. Commission considered the proposal’s impact on available publicly. All submissions 17, 2013), 78 FR 77525 (Dec. 23, 2013) (SR–FOCC– efficiency, competition, and capital formation. 15 should refer to File Number SR–Phlx– 2013–22). U.S.C. 78c(f).

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For the Commission by the Division of concerning the purpose of and basis for and is amending Rule 4758 to clarify Trading and Markets, pursuant to delegated the proposed rule change and discussed this and incorporate the use of a third- authority.10 any comments it received on the party routing broker expressly into that Kevin M. O’Neill, proposed rule change. The text of these rule. Specifically, today, the Exchange Deputy Secretary. statements may be examined at the routes equities orders to away markets [FR Doc. 2014–02138 Filed 1–31–14; 8:45 am] places specified in Item IV below. The through NES, which, in turn, sometimes BILLING CODE 8011–01–P Exchange has prepared summaries, set routes directly to away markets; in forth in sections A, B, and C below, of addition, sometimes when the Exchange the most significant aspects of such routes equities orders through NES SECURITIES AND EXCHANGE statements. today, NES routes those orders through COMMISSION a third-party routing broker. (A) Self-Regulatory Organization’s In options, the Exchange currently [Release No. 34–71419; File No. SR– Statement of the Purpose of, and routes options orders to NOS, which NASDAQ–2014–007] Statutory Basis for, the Proposed Rule routes directly to away markets. The Change Self-Regulatory Organizations; The Exchange proposes to use NES, rather NASDAQ Stock Market LLC; Notice of 1. Purpose than NOS, as explained above, and to have NES route either directly to other Filing and Immediate Effectiveness of The purpose of the proposal is to options exchanges or to a third-party Proposed Rule Change to Outbound update the Exchange’s rules to reflect Routing routing broker (which will, in turn, the ability to route orders to other route to other options exchanges). The January 28, 2014 exchanges using either the Exchange’s Exchange proposes to amend Chapter Pursuant to Section 19(b)(1) of the affiliated broker-dealer or a third party VI, Section 11 of NOM’s rules Securities Exchange Act of 1934 unaffiliated broker-dealer, which the accordingly. (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange may choose to use for Regardless of whether a third-party notice is hereby given that on January efficiency and potential cost savings. routing broker is used in either equities Today, the relevant Exchange rules 15, 2014, The NASDAQ Stock Market or options, all routing will go through provide that the Exchange shall route LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed NES, but the Exchange could determine orders in options via NOS and in with the Securities and Exchange to direct NES to route orders to certain equities via NES. Both NOS and NES are Commission (‘‘SEC’’ or ‘‘Commission’’) exchanges using a routing broker rather affiliates and members of Nasdaq. As a the proposed rule change as described than routing an order directly. result, certain conditions have been in Items I, II, and III, below, which Items The Exchange previously stated that imposed on the existing routing have been prepared by the Exchange. from time to time, it may use non- arrangements.3 The Commission is publishing this affiliate third-party broker-dealers to notice to solicit comments on the Replacing NOS With NES provide outbound routing services (i.e., third-party Routing Brokers).4 In those proposed rule change from interested The Exchange proposes to amend its persons. cases, orders are submitted to the third- rules to provide that it shall use NES for party Routing Broker through the I. Self-Regulatory Organization’s routing orders in options rather than affiliated routing broker, and the third- Statement of the Terms of Substance of NOS. The Exchange has determined to party Routing Broker routes the orders the Proposed Rule Change use NES for outbound routing in to the routing destination in its name. options, in addition to equities. The The Exchange proposes to use Nasdaq Under this proposal, the relevant Exchange originally set up its affiliated rules would now expressly provide that Execution Services, LLC (‘‘NES’’) as broker-dealers as two separate entities. opposed to Nasdaq Options Services the Exchange could use one or more Now, the Exchange believes that this is third-party unaffiliated routing broker- LLC (‘‘NOS’’) for outbound order unnecessary and costly. Accordingly, routing from The NASDAQ Options dealers (‘‘routing brokers’’). Specifically, pursuant to NOM Rules, Chapter VI, the Exchange proposes to amend NOM Market (‘‘NOM’’), as explained further Section 11, NES will now be the below. The Exchange also proposes to Rules, Chapter VI, Section 11, which outbound routing broker for NOM. As applies to options, to refer to such permit the Exchange to route equities the new Routing Facility for options, and options orders through NES either routing brokers. The Exchange proposes NES will operate the same way as NOS to similarly amend Rule 4758(b) directly or through a third party routing currently does, in terms of routing broker-dealer, as explained further respecting equities. The Exchange options orders to destination options proposes to further amend its rules with below. exchanges. This is substantially similar The text of the proposed rule change respect to certain policies and to NYSEArca’s use of its affiliate is available on the Exchange’s Web site procedures. Specifically, NOM Rules, Archipelago Securities LLC for order at http://nasdaq.cchwallstreet.com, at Chapter VI, Section 11(e) and Nasdaq routing in both equities and options. the principal office of the Exchange, and Rule 4758 currently provide that the at the Commission’s Public Reference Third-Party Routing Broker Exchange shall establish and maintain Room. procedures and internal controls The Exchange also proposes to codify reasonably designed to adequately II. Self-Regulatory Organization’s in its rules the ability to use a third- restrict the flow of confidential and Statement of the Purpose of, and party routing broker to route to away proprietary information between the Statutory Basis for, the Proposed Rule exchanges, rather than routing directly Exchange and the Routing Facility, and Change through NES, for both equities and any other entity, including any affiliate options. To date, the Exchange has used of the Routing Facility. The Exchange In its filing with the Commission, the a third-party routing broker in equities Exchange included statements 4 See Securities Exchange Act Release Nos. 67281 3 See, e.g., Securities Exchange Act Release No. (June 27, 2012), 77 FR 39543 (July 3, 2012) (SR– 10 17 CFR 200.30–3(a)(12). 57478 (March 12, 2008), 73 FR 14521 (March 18, NASDAQ–2012–057) at note 6; and 68395 1 15 U.S.C. 78s(b)(1). 2008) (SR–NASDAQ–2007–04 and SR–NASDAQ– (December 10, 2012), 77 FR 74530 (December 14, 2 17 CFR 240.19b–4. 2007–080) at 14533. 2012) (SR–NASDAQ–2012–134) at note 4.

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proposes to amend those rules to maintaining a membership (for NES) inefficiencies associated with operating provide that, where there is a routing and/or the costs of connectivity and a separate broker-dealer for options broker, the Exchange shall establish and execution do not make sense in light of routing. In addition, the Exchange maintain procedures and internal the number or types of orders the believes that the proposal is not controls reasonably designed to Exchange typically routes to that designed to permit unfair adequately restrict the flow of particular market. These costs discrimination between customers, confidential and proprietary necessarily determine the ultimate costs issuers, brokers, or dealers, because information between the Exchange, the to the Exchange of routing to a market, there are specific protections pertaining Routing Facility and any routing broker, and, in turn, affect how the Exchange to the routing broker in light of the and any other entity, including any chooses to recoup those costs through potential conflict of interest where the affiliate of the routing broker (and if the its own transaction fees.8 Sometimes, it member routing broker could have routing broker or any of its affiliates will not make economic sense for NES access to information regarding other engages in any other business activities to access an exchange directly. members’ orders or the routing of those other than providing routing services to Accordingly, the Exchange intends to orders. These protections include the the Exchange, between the segment of use a routing broker where the Exchange Exchange’s control over all routing logic the routing broker or affiliate that determines that it is appropriate. In as well as the confidentiality of routing provides the other business activities addition to costs, the Exchange will also information.11 and the segment of the routing broker consider ease of connectivity and that provides the routing services).5 execution as well as general reliability (B) Self-Regulatory Organization’s This way, this provision extends to the in selecting a routing broker. Statement on Burden on Competition routing broker, if one is used. For several weeks, the Exchange has The Exchange does not believe that In both the proposed equities and been working with the Financial the proposed rule change will impose options rules, the Exchange proposes to Regulatory Authority (‘‘FINRA’’) and any burden on competition not provide that the Exchange may not use The Options Clearing Corporation necessary or appropriate in furtherance a routing broker for which the Exchange (‘‘OCC’’) to secure the necessary of the purposes of the Act. The proposal or any affiliate of the Exchange is the approvals for NES to perform these is pro-competitive because it enables designated examining authority. This is functions. The Exchange has now broker-dealers other than NOS and NES similar to the existing provisions that do secured those approvals. The Exchange to provide routing services to the not permit the Exchange to be the seeks to complete this process and Exchange, which has the potential to designated examining authority for its implement this proposal in January or reduce the Exchange’s costs of routing affiliated routing brokers.6 early February. orders and, potentially, the fees the The Exchange also proposes to 2. Statutory Basis Exchange charges for routed orders. The expressly state in Rule 4758(b)(1) and proposal does not raise issues of intra- The Exchange believes that its NOM Rules, Chapter VI, Section 11(e) market competition, because the proposal is consistent with Section 6(b) that the Exchange will determine the Exchange’s decision to route through a of the Act 9 in general, and furthers the logic that provides when, how, and particular routing broker would impact objectives of Section 6(b)(5) of the Act 10 where orders are routed away to other all participants equally. exchanges. In addition, the routing in particular, in that it is designed to broker(s) cannot change the terms of an promote just and equitable principles of (C) Self-Regulatory Organization’s order or the routing instructions, nor trade, to remove impediments to and Statement on Comments on the does the routing broker have any perfect the mechanism of a free and Proposed Rule Change Received From discretion about where to route an open market and a national market Members, Participants, or Others system, and, in general to protect order. This is consistent with, but more No written comments were either investors and the public interest, by specific than, the current language that solicited or received. states that routing is performed under providing an alternative routing the direction of the Exchange.7 arrangement. The proposal should III. Date of Effectiveness of the The Exchange may determine to use remove impediments to and perfect the Proposed Rule Change and Timing for a different routing broker by product or mechanism of a free and open market Commission Action by destination exchange, depending and a national market system by Because the foregoing proposed rule upon the costs and technological providing customer order protection change does not: (i) Significantly affect efficiencies involved. The proposal is and by facilitating trading at away the protection of investors or the public intended to allow the Exchange to exchanges so customer orders trade at interest; (ii) impose any significant the best market price. The proposal structure its routing arrangements burden on competition; and (iii) become should also protect investors and the accordingly. At a minimum, the operative for 30 days from the date on public interest by fostering compliance Exchange anticipates using a routing which it was filed, or such shorter time with the Options Order Protection and broker to access certain markets where as the Commission may designate, it has Locked/Crossed Market Plan. The the Exchange finds that the costs of become effective pursuant to Section Exchange also believes that the proposal 19(b)(3)(A)(ii) of the Act 12 and 5 to use NES rather than NOS for options This is substantially similar to NYSEArca Rule subparagraph (f)(6) of Rule 19b–4 6.96(a)(8). routing is designed to promote just and thereunder.13 6 See NOM Chapter VI, Section 11(e) (which equitable principles of trade and to currently provides that NOS is a broker-dealer that protect investors and the public interest, is a member of an unaffiliated SRO which is the 11 See proposed Rules 4758(b)(1) and (8) and designated examining authority for the broker- by eliminating the costs and NOM Rules, Chapter VI, Section 11(e). dealer) and Rule 4758(b)(4) (which currently 12 15 U.S.C. 78s(b)(3)(a)(ii). provides that the designated examining authority of 8 For these reasons, today, transaction fees for 13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– NES shall be a self-regulatory organization orders vary depending on the market where an 4(f)(6) requires a self-regulatory organization to give unaffiliated with the Nasdaq Stock Market LLC or order is ultimately executed. See e.g., NASDAQ the Commission written notice of its intent to file any of its affiliates). This is also substantially Rule 7000 series and NOM Rules, Chapter XV. the proposed rule change at least five business days similar to NYSEArca Rule 6.96(a)(7). 9 15 U.S.C. 78f(b). prior to the date of filing of the proposed rule 7 This is based on NYSEArca Rule 6.96(a)(1)(A). 10 15 U.S.C. 78f(b)(5). change, or such shorter time as designated by the

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At any time within 60 days of the office of the Exchange. All comments II. Self-Regulatory Organization’s filing of the proposed rule change, the received will be posted without change; Statement of the Purpose of, and Commission summarily may the Commission does not edit personal Statutory Basis for, the Proposed Rule temporarily suspend such rule change if identifying information from Change it appears to the Commission that such submissions. You should submit only In its filing with the Commission, the action is: (i) Necessary or appropriate in information that you wish to make Exchange included statements the public interest; (ii) for the protection available publicly. All submissions concerning the purpose of and basis for of investors; or (iii) otherwise in should refer to File Number SR– the proposed rule change and discussed furtherance of the purposes of the Act. NASDAQ–2014–007 and should be any comments it received on the If the Commission takes such action, the submitted on or before February 24, proposed rule change. The text of these Commission shall institute proceedings 2014. statements may be examined at the to determine whether the proposed rule For the Commission, by the Division of places specified in Item IV below. The should be approved or disapproved. Trading and Markets, pursuant to delegated Exchange has prepared summaries, set IV. Solicitation of Comments authority.14 forth in sections A, B, and C below, of Kevin M. O’Neill, the most significant aspects of such Interested persons are invited to statements. submit written data, views, and Deputy Secretary. arguments concerning the foregoing, [FR Doc. 2014–02135 Filed 1–31–14; 8:45 am] A. Self-Regulatory Organization’s including whether the proposed rule BILLING CODE 8011–01–P Statement of the Purpose of, and change is consistent with the Act. Statutory Basis for, the Proposed Rule Comments may be submitted by any of Change the following methods: SECURITIES AND EXCHANGE 1. Purpose COMMISSION Electronic Comments On February 8, 2013, the Exchange • Use the Commission’s Internet received approval of a rule change that [Release No. 34–71424; File No. SR–CBOE– established a Pilot Program that allows comment form (http://www.sec.gov/ 2014–004] rules/sro.shtml); or the Exchange to list options on the S&P • 500 Index whose exercise settlement Send an email to rule-comments@ Self-Regulatory Organizations; value is derived from closing prices on sec.gov. Please include File Number SR– Chicago Board Options Exchange, the last trading day prior to expiration NASDAQ–2014–007 on the subject line. Incorporated; Notice of Filing and (‘‘SPXPM’’).3 On July 31, 2013, the Immediate Effectiveness of a Proposed Paper Comments Exchange received approval of a rule Rule Change To Extend a Pilot • Send paper comments in triplicate change that amended the Pilot Program Program To List and Trade P.M.- to Elizabeth M. Murphy, Secretary, to allow the Exchange to list options on Securities and Exchange Commission, Settled S&P 500 Index Option Products the Mini-SPX Index (‘‘XSP’’) whose 100 F Street NE., Washington, DC January 28, 2014. exercise settlement value is derived 20549–1090. from closing prices on the last trading All submissions should refer to File Pursuant to Section 19(b)(1) of the day prior to expiration (‘‘P.M.-settled’’) 4 Securities Exchange Act of 1934 (the (together, SPXPM and P.M.-settled XSP Number SR–NASDAQ–2014–007. This 1 2 file number should be included on the ‘‘Act’’), and Rule 19b–4 thereunder, to be referred to herein as the ‘‘Pilot subject line if email is used. To help the notice is hereby given that on January Products’’).5 This pilot period is Commission process and review your 16, 2014, Chicago Board Options currently scheduled to expire on comments more efficiently, please use Exchange, Incorporated (the ‘‘Exchange’’ February 8, 2014. The Exchange hereby only one method. The Commission will or ‘‘CBOE’’) filed with the Securities proposes to extend the duration of this post all comments on the Commission’s and Exchange Commission (the pilot period to end on November 3, Internet Web site (http://www.sec.gov/ ‘‘Commission’’) the proposed rule 2014. rules/sro.shtml). Copies of the change as described in Items I and II During the course of the Pilot Program submission, all subsequent below, which Items have been prepared and in support of the extension of the amendments, all written statements by the Exchange. The Commission is Pilot Program, the Exchange has with respect to the proposed rule publishing this notice to solicit submitted to the Commission reports change that are filed with the comments on the proposed rule change regarding the Pilot Program which detail Commission, and all written from interested persons. the Exchange’s experience with the Pilot Program, pursuant to the SPXPM communications relating to the I. Self-Regulatory Organization’s Approval Order and the P.M.-settled proposed rule change between the Statement of the Terms of Substance of XSP Approval Order. Specifically, the Commission and any person, other than the Proposed Rule Change those that may be withheld from the Exchange has submitted a Pilot Program public in accordance with the The Exchange proposes to extend a report to the Commission at least two provisions of 5 U.S.C. 552, will be pilot program. The text of the proposed months prior to the expiration date of available for Web site viewing and rule change is available on the the Pilot Program (the ‘‘annual report’’). printing in the Commission’s Public Exchange’s Web site (http:// www.cboe.com/AboutCBOE/ 3 See Securities Exchange Act Release No. 68888 Reference Room, 100 F Street NE., (February 8, 2013), 78 FR 10668 (February 14, 2013) Washington, DC 20549, on official CBOELegalRegulatoryHome.aspx), at (SR–CBOE–2012–120) (the ‘‘SPXPM Pilot Program business days between the hours of the Exchange’s Office of the Secretary, Approval Order’’). 10:00 a.m. and 3:00 p.m. Copies of the and at the Commission’s Public 4 See Securities Exchange Act Release No. 70087 filing also will be available for Reference Room. (July 31, 2013), 78 FR 47809 (August 6, 2013) (SR– CBOE–2013–055) (the ‘‘P.M.-settled XSP Approval inspection and copying at the principal Order’’). 14 17 CFR 200.30–3(a)(12). 5 For more information on SPXPM, P.M.-settled Commission. The Exchange has satisfied this 1 15 U.S.C. 78s(b)(1). XSP or the Pilot Program, see the SPXPM Approval requirement. 2 17 CFR 240.19b–4. Order and the P.M.-settled XSP Approval Order.

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The annual report has contained an prevailing market volatility, as measured by 6(b)(5) 8 requirements that the rules of analysis of volume, open interest, and the CBOE Volatility Index (VIX), is provided; an exchange be designed to prevent trading patterns. The analysis examines and fraudulent and manipulative acts and trading in Pilot Products as well as (2) a calculation of share volume for a practices, to promote just and equitable sample set of the component securities trading in the securities that comprise representing an upper limit on share trading principles of trade, to foster cooperation the underlying index. In addition, for that could be attributable to expiring in-the- and coordination with persons engaged series that exceed certain minimum money series. The data includes a in regulating, clearing, settling, open interest parameters, the annual comparison of the calculated share volume processing information with respect to, report provides analysis of index price for securities in the sample set to the average and facilitating transactions in volatility and share trading activity. In daily trading volumes of those securities over securities, to remove impediments to addition to the annual report, the a sample period. and perfect the mechanism of a free and Exchange provides the Commission The minimum open interest parameters, open market and a national market with periodic interim reports while the control sample, time intervals, method system, and, in general, to protect Pilot Program is in effect that contains for randomly selecting the component investors and the public interest. some, but not all, of the information securities, and sample periods are Additionally, the Exchange believes the contained in the annual report. The determined by the Exchange and the proposed rule change is consistent with annual report is provided to the Commission. In proposing to extend the the Section 6(b)(5) 9 requirement that Commission on a confidential basis. Pilot Program, the Exchange will the rules of an exchange not be designed The annual report contains the continue to abide by the reporting to permit unfair discrimination between following volume and open interest requirements described herein, as well customers, issuers, brokers, or dealers. data: as in the SPXPM Approval Order and In particular, the Exchange believes (1) monthly volume aggregated for all the P.M.-settled XSP Approval Order. that the proposed extension of the Pilot trades; The Exchange proposes the extension Program will continue to provide greater (2) monthly volume aggregated by of the Pilot Program in order to continue opportunities for investors. Further, the expiration date; to give the Commission more time to Exchange believes that it has not (3) monthly volume for each consider the impact of the Pilot experienced any adverse effects or individual series; Program. To this point, CBOE believes meaningful regulatory concerns from (4) month-end open interest that the Pilot Program has been well- the operation of the Pilot Program. As aggregated for all series; received by its Trading Permit Holders such, the Exchange believes that the (5) month-end open interest for all (‘‘TPHs’’) and the investing public and extension of the Pilot Program does not series aggregated by expiration date; and the Exchange would like to continue to raise any unique or prohibitive (6) month-end open interest for each provide investors with the ability to regulatory concerns. Also, the Exchange individual series. trade SPXPM and P.M.-settled XSP. All believes that such trading has not, and In addition to the annual report, the terms regarding the trading of the Pilot will not, adversely impact fair and Exchange provides the Commission Products shall continue to operate as orderly markets on Expiration Fridays with interim reports of the information described in the SPXPM Approval for the underlying stocks comprising the listed in Items (1) through (6) above Order and the P.M.-settled XSP S&P 500 index. The extension of the periodically as required by the Approval Order. The Exchange merely Pilot Program will continue to provide investors with the opportunity to trade Commission while the Pilot Program is proposes herein to extend the term of the desirable products of SPXPM and in effect. These interim reports are also the Pilot Program to November 3, 2014. provided on a confidential basis. The The November 3, 2014 end date was P.M.-settled XSP, while also providing annual report also contains the selected because that is the currently- the Commission further opportunity to information noted in Items (1) through scheduled end date for another pilo21t observe such trading of the Pilot (6) above for Expiration Friday, A.M.- [sic] program regarding permissible Products. settled S&P 500 index options traded on exercise settlement values for Flexible B. Self-Regulatory Organization’s CBOE. Exchange Index Options (‘‘FLEX Index Statement on Burden on Competition In addition, the annual report Options’’) (the ‘‘FLEX Index Options CBOE does not believe that the contains the following analysis of Pilot Program’’),6 and aligning the end trading patterns in the Pilot Products proposed rule change will impose any dates for the Pilot Program and the burden on competition that is not options series in the Pilot Program: FLEX Index Options Pilot Program (1) a time series analysis of open necessary or appropriate in furtherance would make the submission and review of the purposes of the Act. The interest; and of annual reports for the two pilot (2) an analysis of the distribution of Exchange does not believe the programs easier for both the Exchange continuation of the Pilot Program will trade sizes. and the Commission. Also, for series that exceed certain impose any unnecessary or minimum parameters, the annual report 2. Statutory Basis inappropriate burden on intramarket contains the following analysis related The Exchange believes the proposed competition because it will continue to index price changes and underlying rule change is consistent with the Act apply equally to all CBOE market share trading volume at the close on and the rules and regulations participants and the Pilot Products will Expiration Fridays: thereunder applicable to the Exchange be available to all CBOE market participants. The Exchange believes (1) a comparison of index price changes at and, in particular, the requirements of Section 6(b) of the Act.7 Specifically, there is sufficient investor interest and the close of trading on a given Expiration demand in the Pilot Program to warrant Friday with comparable price changes from the Exchange believes the proposed rule a control sample. The data includes a change is consistent with the Section its extension. The Exchange believes calculation of percentage price changes for that, for the period that the Pilot various time intervals and compare that 6 See Securities Exchange Act Release No. 70752 Program has been in operation, it has information to the respective control sample. (October 24, 2013), 78 FR 65023 (October 30, 2013) Raw percentage price change data as well as (SR–CBOE–2013–099). 8 15 U.S.C. 78f(b)(5). percentage price change data normalized for 7 15 U.S.C. 78f(b). 9 Id.

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provided investors with desirable investor confusion that could result 10:00 a.m. and 3:00 p.m. Copies of such products with which to trade. from a temporary interruption in the filing also will be available for Furthermore, the Exchange believes that Pilot Program. For this reason, the inspection and copying at the principal it has not experienced any adverse Commission designates the proposed office of the Exchange. All comments market effects or regulatory concerns rule change to be operative on February received will be posted without change; with respect to the Pilot Program. The 8, 2014.12 the Commission does not edit personal Exchange further does not believe that At any time within 60 days of the identifying information from the proposed extension of the Pilot filing of the proposed rule change, the submissions. You should submit only Program will impose any burden on Commission summarily may information that you wish to make intermarket competition that is not temporarily suspend such rule change if available publicly. All submissions necessary or appropriate in furtherance it appears to the Commission that such should refer to File No. SR–CBOE– of the purposes of the Act because it action is necessary or appropriate in the 2014–004 and should be submitted on only applies to trading on CBOE. To the public interest, for the protection of or before February 24, 2014. investors, or otherwise in furtherance of extent that the continued trading of the For the Commission, by the Division of Pilot Products may make CBOE a more the purposes of the Act. Trading and Markets, pursuant to delegated attractive marketplace to market IV. Solicitation of Comments authority.13 participants at other exchanges, such Interested persons are invited to Kevin M. O’Neill, market participants may elect to become Deputy Secretary. CBOE market participants. submit written data, views, and arguments concerning the foregoing, [FR Doc. 2014–02140 Filed 1–31–14; 8:45 am] C. Self-Regulatory Organization’s including whether the proposed rule BILLING CODE 8011–01–P Statement on Comments on the change is consistent with the Act. Proposed Rule Change Received From Comments may be submitted by any of Members, Participants, or Others the following methods: SECURITIES AND EXCHANGE COMMISSION The Exchange neither solicited nor Electronic Comments received comments on the proposed • Use the Commission’s Internet rule change. [Release No. 34–71423; File No. SR–CBOE– comment form (http://www.sec.gov/ 2014–008] III. Date of Effectiveness of the rules/sro.shtml); or Proposed Rule Change and Timing for • Send an email to rule-comments@ Self-Regulatory Organizations; Commission Action sec.gov. Please include File No. SR– Chicago Board Options Exchange, CBOE–2014–004 on the subject line. Incorporated; Notice of Filing and Because the proposed rule change Immediate Effectiveness of a Proposed Paper Comments does not (i) significantly affect the Rule Change to Amend its Fees protection of investors or the public • Send paper comments in triplicate Schedule interest; (ii) impose any significant to Elizabeth M. Murphy, Secretary, burden on competition; and (iii) become Securities and Exchange Commission, January 28, 2014. operative for 30 days from the date on 100 F Street NE., Washington, DC Pursuant to Section 19(b)(1) of the which it was filed, or such shorter time 20549–1090. Securities Exchange Act of 1934 (the as the Commission may designate if All submissions should refer to File No. ‘‘Act’’),1 and Rule 19b-4 thereunder,2 consistent with the protection of SR–CBOE–2014–004. This file number notice is hereby given that on January investors and the public interest, the should be included on the subject line 17, 2014, Chicago Board Options proposed rule change has become if email is used. To help the Exchange, Incorporated (the ‘‘Exchange’’ effective pursuant to Section 19(b)(3)(A) Commission process and review your or ‘‘CBOE’’) filed with the Securities 10 of the Act and Rule 19b–4(f)(6)(iii) comments more efficiently, please use and Exchange Commission (the 11 thereunder. only one method. The Commission will ‘‘Commission’’) the proposed rule The Exchange has asked the post all comments on the Commission’s change as described in Items I, II, and Commission to waive the 30-day Web site (http://www.sec.gov/rules/ III below, which Items have been operative delay so that the proposal may sro.shtml). Copies of the submission, all prepared by the Exchange. The become operative immediately upon subsequent amendments, all written Commission is publishing this notice to filing. The existing Pilot Program statements with respect to the proposed solicit comments on the proposed rule currently expires on February 8, 2014. rule change that are filed with the change from interested persons. The Commission believes that waiving Commission, and all written the 30-day operative delay to the extent communications relating to the I. Self-Regulatory Organization’s necessary to allow the proposal to proposed rule change between the Statement of the Terms of Substance of become operative on February 8, 2014 is Commission and any person, other than the Proposed Rule Change consistent with the protection of those that may be withheld from the The Exchange proposes to amend its investors and the public interest, as it public in accordance with the Fees Schedule. The text of the proposed will allow the Pilot Program to continue provisions of 5 U.S.C. 552, will be rule change is available on the uninterrupted after its current available for Web site viewing and Exchange’s Web site (http:// expiration date, thereby avoiding printing in the Commission’s Public www.cboe.com/AboutCBOE/ Reference Room, 100 F Street NE., CBOELegalRegulatoryHome.aspx), at 10 15 U.S.C. 78s(b)(3)(A). Washington, DC 20549, on official 11 17 CFR 240.19b–4(f)(6)(iii). As required under the Exchange’s Office of the Secretary, Rule 19b–4(f)(6)(iii), the Exchange provided the business days between the hours of and at the Commission’s Public Commission with written notice of its intent to file Reference Room. the proposed rule change, along with a brief 12 For purposes only of waiving the 30-day description and the text of the proposed rule operative delay, the Commission has also change, at least five business days prior to the date considered the proposed rule’s impact on 13 17 CFR 200.30–3(a)(12). of filing of the proposed rule change, or such efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1). shorter time as designated by the Commission. 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.

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II. Self-Regulatory Organization’s As the Exchange proposes to state that participants will be able to avoid being Statement of the Purpose of, and it will not assess fees for subcabinet assessed fees for subcabinet trades. Statutory Basis for, the Proposed Rule trades, the Exchange also proposes to The Exchange believes that it is Change state that subcabinet trades will also not reasonable, equitable and not unfairly In its filing with the Commission, the count towards any volume thresholds or discriminatory to exclude volume from 4 Exchange included statements volume threshold calculations. The subcabinet trades towards the Exchange concerning the purpose of and basis for Exchange has determined that it is not Fee Programs because such trades are the proposed rule change and discussed economically viable to count not assessed fees. It does not make any comments it received on the transactions for which fees are not economic sense (nor is it economically assessed towards the volume thresholds proposed rule change. The text of these viable) to count transactions towards of programs that offer lowered fees statements may be examined at the programs that provide lower fees when based on reaching those volume places specified in Item IV below. The such transactions are not assessed fees, thresholds. Exchange has prepared summaries, set and it seems fair to exclude subcabinet forth in sections A, B, and C below, of 2. Statutory Basis trades from such programs when the most significant aspects of such subcabinet trades are not being assessed statements. The Exchange believes the proposed fees. Similarly, the Exchange believes A. Self-Regulatory Organization’s rule change is consistent with the Act that it is reasonable, equitable and not Statement of the Purpose of, and and the rules and regulations unfairly discriminatory to assess the Statutory Basis for, the Proposed Rule thereunder applicable to the Exchange Sales Value Fee for subcabinet trades, as Change and, in particular, the requirements of the Sales Value Fee is assessed on Section 6(b) of the Act.5 Specifically, 1. Purpose transactions when the Exchange must the Exchange believes the proposed rule pay some outside party (pursuant to The Exchange proposes to amend its change is consistent with Section 6(b)(4) Section 31 of the Exchange Act, or to of the Act,6 which requires that Fees Schedule regarding subcabinet another exchange) in relation to such Exchange rules provide for the equitable trades. Subcabinet trades are limit transactions. In this circumstance, the allocation of reasonable dues, fees, and orders with a price of at least $0 but less Exchange believes that it would not be other charges among its Trading Permit than $1 per options contract (per economically viable to pay fees to those Holders and other persons using its Exchange Rule 6.54, Interpretation and outside parties when no fee is being Policy .03). These trades are often facilities. The Exchange believes that it assessed by the Exchange for such executed in order to close out positions is reasonable to not assess fees for transactions. prior to expiration and therefore remove subcabinet trades because market the risks or capital costs associated with participants executing such trades will B. Self-Regulatory Organization’s open positions. not have to pay a fee for such Statement on Burden on Competition The Exchange hereby proposes to transactions. The Exchange believes that explicitly state that the Exchange will it is equitable and not unfairly CBOE does not believe that the assess no transaction fees or surcharges discriminatory to not assess fees or proposed rule change will impose any for subcabinet trades. This is because surcharges for subcabinet trades because burden on competition that is not the Exchange believes that enabling subcabinets are of such minimal necessary or appropriate in furtherance market participants to close out economic value that assessing almost of the purposes of the Act. CBOE does positions at no cost allows those market any fee would render such transactions not believe that the proposed rule participants to reduce risk associated not economically viable for the market change will impose any burden on with near-worthless positions and free participants holding the positions, intramarket competition that is not up capital for other trading purposes. thereby causing the inefficiency of necessary or appropriate in furtherance This serves to increase volume and positions being left open merely because of the purposes of the Act because all profit opportunity in CBOE’s non- it is more expensive to close them. The market participants are able to avoid subcabinet options series and across all Exchange believes that enabling market being assessed fees for subcabinet CBOE products, which benefits both the participants to close out positions at no trades, and because the exclusion of Exchange and all of the Exchange’s cost allows those market participants to subcabinet trades from counting market participants. The Exchange reduce risk associated with near- towards the Exchange Fee Programs desires to make clear that it will assess worthless positions and free up capital applies to all market participants to the Sales Value Fee for subcabinet for other trading purposes. This serves whom such programs apply. CBOE does trades, as the Sales Value Fee is to increase volume and profit not believe that the proposed rule assessed on transactions when the opportunity in CBOE’s non-subcabinet change will impose any burden on Exchange must pay some outside party options series and across all CBOE intermarket competition that is not (pursuant to Section 31 of the Exchange products, which benefits both the necessary or appropriate in furtherance Act, or to another exchange) in relation Exchange and all of the Exchange’s of the purposes of the Act because the to such transactions. market participants. Also, all market proposed change only affects trading on The Exchange has a number of fee- CBOE. Indeed, explicitly stating that related programs that provide for Fees Schedule, that provides rebates to Floor Broker subcabinet trades will not be assessed reduced or limited fees based on Trading Permit Holders for executing certain fees may encourage other exchanges to achieving certain volume thresholds.3 amounts of customer open outcry contracts in multiply-listed options in a month (together, the do the same, causing greater 3 For these purposes, these programs are the ‘‘Exchange Fee Programs’’). competition. To the extent that the Liquidity Provider Sliding Scale, the CBOE 4 The Exchange will append the footnote number proposed rule change makes CBOE a Proprietary Products Sliding Scale, and the 32, which includes this statement, to the tables on more attractive trading venue for market the Fees Schedule that apply to the Exchange Fee Customer Large Trade Discount, (see the tables participants on other exchanges, such bearing those names on the Exchange Fees Programs. Schedule for more details on those programs) as 5 15 U.S.C. 78f(b). market participants may elect to become well as the program, described in Footnote 25 of the 6 15 U.S.C. 78(b)(4). CBOE market participants.

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C. Self-Regulatory Organization’s Commission, and all written I. Self-Regulatory Organization’s Statement on Comments on the communications relating to the Statement of the Terms of Substance of Proposed Rule Change Received From proposed rule change between the the Proposed Rule Change Members, Participants, or Others Commission and any person, other than those that may be withheld from the The Exchange proposes to use Nasdaq The Exchange neither solicited nor Execution Services, LLC (‘‘NES’’) as public in accordance with the received comments on the proposed opposed to Nasdaq Options Services rule change. provisions of 5 U.S.C. 552, will be LLC (‘‘NOS’’) for outbound order available for Web site viewing and III. Date of Effectiveness of the routing, as explained further below. The Proposed Rule Change and Timing for printing in the Commission’s Public Exchange also proposes to use NES as Commission Action Reference Room, 100 F Street NE., opposed to NOS to handle the stock Washington, DC 20549 on official The foregoing rule change has become component of a Complex Order, business days between the hours of including Complex Orders submitted effective pursuant to Section 19(b)(3)(A) 10:00 a.m. and 3:00 p.m. Copies of the of the Act 7 and paragraph (f) of Rule into the Price Improvement XL (‘‘PIXL’’) filing also will be available for 19b–4 8 thereunder. At any time within System. In addition, the Exchange 60 days of the filing of the proposed rule inspection and copying at the principal proposes to route equities and options change, the Commission summarily may office of the Exchange. All comments orders through NES either directly or temporarily suspend such rule change if received will be posted without change; through a third party routing broker- it appears to the Commission that such the Commission does not edit personal dealer, as explained further below. action is necessary or appropriate in the identifying information from The text of the proposed rule change public interest, for the protection of submissions. You should submit only is available on the Exchange’s Web site investors, or otherwise in furtherance of information that you wish to make at http://nasdaqomxphlx. the purposes of the Act. If the available publicly. All submissions cchwallstreet.com/, at the principal Commission takes such action, the should refer to File Number SR–CBOE– office of the Exchange, and at the Commission will institute proceedings 2014–008 and should be submitted on Commission’s Public Reference Room. to determine whether the proposed rule or before February 24, 2014. change should be approved or II. Self-Regulatory Organization’s For the Commission, by the Division of disapproved. Statement of the Purpose of, and Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule IV. Solicitation of Comments authority.9 Change Interested persons are invited to Kevin M. O’Neill, In its filing with the Commission, the submit written data, views, and Deputy Secretary. Exchange included statements arguments concerning the foregoing, [FR Doc. 2014–02139 Filed 1–31–14; 8:45 am] concerning the purpose of and basis for including whether the proposed rule BILLING CODE 8011–01–P change is consistent with the Act. the proposed rule change and discussed Comments may be submitted by any of any comments it received on the proposed rule change. The text of these the following methods: SECURITIES AND EXCHANGE statements may be examined at the Electronic Comments COMMISSION places specified in Item IV below. The • Use the Commission’s Internet Exchange has prepared summaries, set comment form (http://www.sec.gov/ [Release No. 34–71417; File No. SR–Phlx– forth in sections A, B, and C below, of rules/sro.shtml); or 2014–04] the most significant aspects of such • Send an email to rule-comments@ statements. Self-Regulatory Organizations; sec.gov. Please include File Number SR– (A) Self-Regulatory Organization’s CBOE–2014–008 on the subject line. NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Statement of the Purpose of, and Paper Comments Proposed Rule Change to Outbound Statutory Basis for, the Proposed Rule Change • Send paper comments in triplicate Routing to Elizabeth M. Murphy, Secretary, 1. Purpose Securities and Exchange Commission, January 28, 2014. 100 F Street NE., Washington, DC Pursuant to Section 19(b)(1) of the The purpose of the proposal is to 20549–1090. Securities Exchange Act of 1934 update the Exchange’s rules to reflect All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2 the ability to route orders to other Number SR–CBOE–2014–008. This file notice is hereby given that on January exchanges using either the Exchange’s number should be included on the 15, 2014, NASDAQ OMX PHLX LLC affiliated broker-dealer or a third party unaffiliated broker-dealer, which the subject line if email is used. To help the (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Exchange may choose to use for Commission process and review your Securities and Exchange Commission efficiency and potential cost savings. comments more efficiently, please use (‘‘SEC’’ or ‘‘Commission’’) the proposed only one method. The Commission will rule change as described in Items I, II, Today, the relevant Exchange rules post all comments on the Commission’s and III, below, which Items have been provide that the Exchange shall route Internet Web site (http://www.sec.gov/ prepared by the Exchange. The orders in options via Nasdaq Options 3 rules/sro.shtml). Copies of the Commission is publishing this notice to Services LLC (‘‘NOS’’) and in equities submission, all subsequent solicit comments on the proposed rule via Nasdaq Execution Services LLC (‘‘NES’’). Both NOS and NES are amendments, all written statements change from interested persons. with respect to the proposed rule affiliates and member organizations of change that are filed with the Phlx. As a result, certain conditions 9 17 CFR 200.30–3(a)(12). 7 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 3 The Exchange operates an equities market 8 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. known as PSX.

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have been imposed on the existing such Complex Orders, the Exchange today, NES routes those orders through routing arrangements.4 electronically communicates the a third-party routing broker. underlying security component of a In options, the Exchange currently Replacing NOS With NES Complex Order to NOS, its designated routes options orders to NOS, which The Exchange proposes to amend its broker-dealer, for immediate execution. routes directly to away markets. The rules to provide that it shall use NES for The execution cannot occur on PHLX Exchange proposes to use NES, rather routing orders in options rather than along with the option component, than NOS, as explained above, and to NOS. The Exchange has determined to because the PHLX options market does have NES route either directly to other use NES for outbound routing in not trade equities like stocks or ETFs. options exchanges or to a third-party options, in addition to equities. The Such execution and reporting occurs routing broker (which will, in turn, Exchange originally set up its affiliated otherwise than on the Exchange and is route to other options exchanges). The broker-dealers as two separate entities. handled by NOS pursuant to applicable Exchange proposes to amend Rule Now, the Exchange believes that this is rules regarding equity trading. NES will 1080(m) accordingly. unnecessary and costly. Accordingly, now perform this function and this Regardless of whether a third-party pursuant to Rule 1080(m)(iii), NES will paragraph will be amended accordingly. routing broker is used in either equities now be the outbound routing broker for Rule 1080(n)(ii)(J) will be amended in or options, all routing will go through Phlx options. As the new Routing a similar fashion. This subparagraph NES, but the Exchange could determine Facility for options, NES will operate covers Complex Orders with a stock/ to direct NES to route orders to certain the same way as NOS currently does, in ETF component entered into PIXL, exchanges through a routing broker terms of routing options orders to which is a process whereby members rather than routing an order directly. destination options exchanges pursuant electronically submit orders they The Exchange previously stated that to Rule 1080(m). This is substantially represent as agent against principal from time to time, it may use non- similar to NYSEArca’s use of its affiliate interest or other interest that they affiliate third-party broker-dealers to Archipelago Securities LLC for order represent as agent. The submitted orders provide outbound routing services (i.e., routing in both equities and options. are stopped at a price and are third-party Routing Brokers).10 In those In addition to outbound order routing, subsequently entered into an auction cases, orders are submitted to the third- NOS also, with Commission approval,5 seeking price improvement. In 2013, the party Routing Broker through the currently executes and reports the Exchange began accepting Complex affiliated routing broker, and the third- underlying security component of a Orders into PIXL, including those with party Routing Broker routes the orders Complex Order, pursuant to Rule a stock/ETF component.8 NOS’ role is to the routing destination in its name. 1080.08(h). A Complex Order is an the same as for Complex Orders not Under this proposal, the relevant order involving the simultaneous entered into PIXL, in that NOS executes rules would now expressly provide that purchase and/or sale of two or more the stock/ETF component. NES will the Exchange could use one or more different options series in the same now perform this function and this third-party unaffiliated routing broker- underlying security, priced as a net paragraph will be amended accordingly. dealers (‘‘routing brokers’’). Specifically, debit or credit based on the relative Additionally, the Exchange represents the Exchange proposes to amend Rule prices of the individual components, for that its prior representations in 1080(m)(iii)(A), which applies to the same account, for the purpose of connection with the performance of options, to refer to such routing brokers. executing a particular investment executing the stock/ETF component of The Exchange proposes to similarly 6 strategy. A Complex Order can also be both PIXL and non-PIXL Complex amend Rule 3315(b)(1) respecting a stock-option order, which is an order Orders by NOS will apply to NES, equities. The Exchange proposes to to buy or sell a stated number of units including the representations relating to further amend its rules with respect to certain policies and procedures. of an underlying security (stock or compliance with Regulation SHO.9 Exchange Traded Fund Share (‘‘ETF’’)) Specifically, Rules 1080(m)(iii)(C) and coupled with the purchase or sale of Third-Party Routing Broker 3315(b)(8) currently provide that the options contract(s).7 Members of FINRA The Exchange also proposes to codify Exchange shall establish and maintain or the NASDAQ Stock Market in its rules the ability to use a third- procedures and internal controls (‘‘NASDAQ’’) are required to have a party routing broker to route to away reasonably designed to adequately Uniform Service Bureau/Executing exchanges, rather than routing directly restrict the flow of confidential and Broker Agreement (‘‘AGU’’) with NOS through NES, for both equities and proprietary information between the in order to trade Complex Orders options. To date, the Exchange has used Exchange and the Routing Facility, and containing a stock/ETF component; a third-party routing broker in equities any other entity, including any affiliate firms that are not members of FINRA or and is amending Rule 3315 to clarify of the Routing Facility. The Exchange NASDAQ are required to have a this and incorporate the use of a third- proposes to amend those rules to Qualified Special Representative party routing broker expressly into that provide that, where there is a routing (‘‘QSR’’) arrangement with NOS in order rule. Specifically, today, the Exchange broker, the Exchange shall establish and to trade Complex Orders containing a routes equities orders to away markets maintain procedures and internal stock/ETF component. Under this through NES, which, in turn, sometimes controls reasonably designed to proposal, members will now be required routes directly to away markets; in adequately restrict the flow of to have an AGU or QSR with NES. In addition, sometimes when the Exchange confidential and proprietary terms of NOS’ role in the execution of routes equities orders through NES information between the Exchange, the Routing Facility and any routing broker, 4 See, e.g., Securities Exchange Act Release No. 8 Securities Exchange Act Release No. 69845 and any other entity, including any 59995 (May 28, 2009), 74 FR 26751 (June 3, 2009) (June 25, 2013), 78 FR 39429 (July 1, 2013) (SR– affiliate of the routing broker (and if the (SR–Phlx–2009–32) at 26756. Phlx–2013–46). 5 Securities Exchange Act Release No. 63777 9 Id. See also Securities Exchange Act Release 10 See Securities Exchange Act Release Nos. (January 26, 2011), 76 FR 5630 (February 1, 2011) Nos. 63777 (January 26, 2011), 76 FR 5630 68393 (December 10, 2012), 77 FR 74520 (December (SR–Phlx–2010–157). (February 1, 2011) (SR–Phlx–2010–157); and 63967 14, 2012) (SR–Phlx–2012–134) at note 4; and 67654 6 See Rule 1080.08(a)(i). (February 25, 2011), 76 FR 12206 (March 4, 2011) (August 14, 2012), 77 FR 50187 (August 20, 2012) 7 Id. (SR–Phlx–2011–27). (SR–Phlx–2012–81) at note 6.

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routing broker or any of its affiliates its own transaction fees.14 Sometimes, it member routing broker could have engages in any other business activities will not make economic sense for NES access to information regarding other other than providing routing services to to access an exchange directly. members’ orders or the routing of those the Exchange, between the segment of Accordingly, the Exchange intends to orders. These protections include the the routing broker or affiliate that use a routing broker where the Exchange Exchange’s control over all routing logic provides the other business activities determines that it is appropriate. In as well as the confidentiality of routing and the segment of the routing broker addition to costs, the Exchange will also information.17 The proposal to use NES that provides the routing services).11 consider ease of connectivity and rather than NOS for Complex Order- This way, this provision extends to the execution as well as general reliability related functions is consistent with routing broker, if one is used. in selecting a routing broker. promoting just and equitable principles In both the proposed equities and For several weeks, the Exchange has of trade and protecting investors and the options rules, the Exchange proposes to been working with the Financial public interest, because it merely provide that the Exchange may not use Regulatory Authority (‘‘FINRA’’) and substitutes one affiliated broker-dealer a routing broker for which the Exchange The Options Clearing Corporation for another. For the same reason, or any affiliate of the Exchange is the (‘‘OCC’’) to secure the necessary compliance with Regulation SHO will designated examining authority. This is approvals for NES to perform these not be affected. similar to the existing provisions that do functions. The Exchange has now secured those approvals. The Exchange (B) Self-Regulatory Organization’s not permit the Exchange to be the Statement on Burden on Competition designated examining authority for its seeks to complete this process and affiliated routing brokers.12 implement this proposal in January or The Exchange does not believe that February. The Exchange also proposes to the proposed rule change will impose expressly state in Rule 1080(m)(iii)(G) 2. Statutory Basis any burden on competition not necessary or appropriate in furtherance and Rule 3315(b)(1) that the Exchange The Exchange believes that its will determine the logic that provides of the purposes of the Act. The proposal proposal is consistent with Section 6(b) is pro-competitive because it enables when, how, and where orders are routed of the Act 15 in general, and furthers the broker-dealers other than NOS and NES away to other exchanges. In addition, objectives of Section 6(b)(5) of the Act 16 to provide routing services to the the routing broker(s) cannot change the in particular, in that it is designed to Exchange, which has the potential to terms of an order or the routing promote just and equitable principles of reduce the Exchange’s costs of routing instructions, nor does the routing broker trade, to remove impediments to and orders and, potentially, the fees the have any discretion about where to perfect the mechanism of a free and Exchange charges for routed orders. The route an order. This is consistent with, open market and a national market proposal does not raise issues of intra- but more specific than, the current system, and, in general to protect market competition, because the language that states that routing is investors and the public interest, by Exchange’s decision to route through a performed under the direction of the providing an alternative routing Exchange.13 arrangement. The proposal should particular routing broker would impact The Exchange may determine to use remove impediments to and perfect the all participants equally. a different routing broker by product or mechanism of a free and open market (C) Self-Regulatory Organization’s by destination exchange, depending and a national market system by Statement on Comments on the upon the costs and technological providing customer order protection Proposed Rule Change Received From efficiencies involved. The proposal is and by facilitating trading at away Members, Participants, or Others intended to allow the Exchange to exchanges so customer orders trade at structure its routing arrangements the best market price. The proposal No written comments were either accordingly. At a minimum, the should also protect investors and the solicited or received. Exchange anticipates using a routing public interest by fostering compliance III. Date of Effectiveness of the broker to access certain markets where with the Options Order Protection and Proposed Rule Change and Timing for the Exchange finds that the costs of Locked/Crossed Market Plan. The Commission Action maintaining a membership (for NES) Exchange also believes that the proposal and/or the costs of connectivity and to use NES rather than NOS for options Because the foregoing proposed rule execution do not make sense in light of routing is designed to promote just and change does not: (i) Significantly affect the number or types of orders the equitable principles of trade and to the protection of investors or the public Exchange typically routes to that protect investors and the public interest, interest; (ii) impose any significant particular market. These costs by eliminating the costs and burden on competition; and (iii) become necessarily determine the ultimate costs inefficiencies associated with operating operative for 30 days from the date on to the Exchange of routing to a market, a separate broker-dealer for options which it was filed, or such shorter time and, in turn, affect how the Exchange routing. In addition, the Exchange as the Commission may designate, it has chooses to recoup those costs through believes that the proposal is not become effective pursuant to Section designed to permit unfair 19(b)(3)(A)(ii) of the Act 18 and subparagraph (f)(6) of Rule 19b–4 11 discrimination between customers, This is substantially similar to NYSEArca Rule 19 6.96(a)(8). issuers, brokers, or dealers, because thereunder. 12 See Phlx Rule 1080(m)(iii)(A) (which currently there are specific protections pertaining provides that NOS is a broker-dealer that is a to the routing broker in light of the 17 See proposed Rules 1080(m)(iii)(G) and member of an unaffiliated self-regulatory 3315(b)(1). organization which is the designated examining potential conflict of interest where the 18 15 U.S.C. 78s(b)(3)(a)(ii). authority for the broker-dealer) and Rule 3315(b)(4) 19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– (which currently provides that the designated 14 For these reasons, today, transaction fees for 4(f)(6) requires a self-regulatory organization to give examining authority for NES shall be a self- orders vary depending on the market where an the Commission written notice of its intent to file regulatory organization unaffiliated with the order is ultimately executed. See e.g., Section V of the proposed rule change at least five business days exchange or any of its affiliates). This is also the NASDAQ OMX PHLX Pricing Schedule. prior to the date of filing of the proposed rule substantially similar to NYSEArca Rule 6.96(a)(7). 15 15 U.S.C. 78f(b). change, or such shorter time as designated by the 13 This is based on NYSEArca Rule 6.96(a)(1)(A). 16 15 U.S.C. 78f(b)(5). Continued

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At any time within 60 days of the office of the Exchange. All comments proposed rule change. The text of these filing of the proposed rule change, the received will be posted without change; statements may be examined at the Commission summarily may the Commission does not edit personal places specified in Item IV below. The temporarily suspend such rule change if identifying information from Exchange has prepared summaries, set it appears to the Commission that such submissions. You should submit only forth in sections A, B, and C below, of action is: (i) Necessary or appropriate in information that you wish to make the most significant aspects of such the public interest; (ii) for the protection available publicly. All submissions statements. should refer to File Number SR–Phlx– of investors; or (iii) otherwise in (A) Self-Regulatory Organization’s 2014–04 and should be submitted on or furtherance of the purposes of the Act. Statement of the Purpose of, and If the Commission takes such action, the before February 24, 2014. Statutory Basis for, the Proposed Rule Commission shall institute proceedings For the Commission, by the Division of Change to determine whether the proposed rule Trading and Markets, pursuant to delegated should be approved or disapproved. authority.20 1. Purpose IV. Solicitation of Comments Kevin M. O’Neill, The purpose of the filing is to permit Deputy Secretary. the receipt of inbound orders routed Interested persons are invited to [FR Doc. 2014–02133 Filed 1–31–14; 8:45 am] from affiliated exchanges in options submit written data, views, and BILLING CODE 8011–01–P through NES. The Exchange filed a arguments concerning the foregoing, proposed rule change to use NES rather including whether the proposed rule than Nasdaq Options Services LLC change is consistent with the Act. SECURITIES AND EXCHANGE (‘‘NOS’’) for the outbound routing of Comments may be submitted by any of COMMISSION options orders and the Exchange also the following methods: updated its equities and options rules to [Release No. 34–71420; File No. SR–BX– Electronic Comments 2014–004] reflect the use of a third party • unaffiliated routing broker.3 Use the Commission’s Internet Now, the Exchange proposes to comment form (http://www.sec.gov/ Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing continue to receive orders from its rules/sro.shtml); or affiliated exchanges. Specifically, the • Send an email to rule-comments@ and Immediate Effectiveness of Exchange proposes to receive options sec.gov. Please include File Number SR– Proposed Rule Change To Inbound Routing of Options Orders orders, through NES directly from the Phlx–2014–04 on the subject line. options market of NASDAQ OMX PHLX Paper Comments January 28, 2014. LLC (‘‘PHLX’’) 4 as well as from The Pursuant to Section 19(b)(1) of the 5 • Send paper comments in triplicate NASDAQ Options Market (‘‘NOM’’), Securities Exchange Act of 1934 to Elizabeth M. Murphy, Secretary, under the same terms and conditions as (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Securities and Exchange Commission, NOS currently does. NASDAQ and notice is hereby given that on January 100 F Street, NE., Washington, DC PHLX have filed to use NES for 15, 2014, NASDAQ OMX BX, Inc. (‘‘BX’’ 6 20549–1090. outbound routing, as well as to receive or ‘‘Exchange’’) filed with the Securities options orders routed from PHLX All submissions should refer to File and Exchange Commission (‘‘SEC’’ or through NES.7 Number SR–Phlx–2014–04. This file ‘‘Commission’’) the proposed rule NOS and NES are broker-dealers and number should be included on the change as described in Items I, II, and members of The NASDAQ Stock Market subject line if email is used. To help the III, below, which Items have been LLC (‘‘NASDAQ’’), PHLX and BX. Commission process and review your prepared by the Exchange. The Currently, NOS provides all options comments more efficiently, please use Commission is publishing this notice to routing functions for BX Options, PHLX, only one method. The Commission will solicit comments on the proposed rule and NOM. BX, NASDAQ, NOM, PHLX, post all comments on the Commission’s change from interested persons. NES and NOS are affiliates.8 Internet Web site (http://www.sec.gov/ Accordingly, the affiliate relationship rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s between BX and NOS, its member, submission, all subsequent Statement of the Terms of Substance of raises the issue of an exchange’s amendments, all written statements the Proposed Rule Change affiliation with a member of such with respect to the proposed rule The Exchange proposes to permit the exchange. Specifically, in connection change that are filed with the Exchange to receive inbound orders in with prior filings, the Commission has Commission, and all written options routed through Nasdaq expressed concern that the affiliation of communications relating to the Execution Services, LLC (‘‘NES’’) from an exchange with one of its members proposed rule change between the affiliated exchanges, as described in raises the potential for unfair Commission and any person, other than detail below. those that may be withheld from the 3 II. Self-Regulatory Organization’s See SR–BX–2014–003. public in accordance with the 4 Securities Exchange Act Release No. 67256 provisions of 5 U.S.C. 552, will be Statement of the Purpose of, and (June 26, 2012), 77 FR 39277 (July 2, 2012) (SR–BX– available for Web site viewing and Statutory Basis for, the Proposed Rule 2012–030). printing in the Commission’s Public Change 5 Id. 6 See SR–NASDAQ–2014–007 and SR–Phlx– Reference Room, 100 F Street, NE., In its filing with the Commission, the 2014–004. Washington, DC 20549, on official Exchange included statements 7 See SR–NASDAQ–2014–008 and SR–Phlx– business days between the hours of concerning the purpose of and basis for 2014–005. 10:00 a.m. and 3:00 p.m. Copies of the the proposed rule change and discussed 8 See Securities Exchange Act Release Nos. 58324 filing also will be available for any comments it received on the (August 7, 2008), 73 FR 46936 (August 12, 2008) (SR–BSE–2008–02; SR–BSE–2008–23; SR–BSE– inspection and copying at the principal 2008–25; SR–BSECC–2008–01) (order approving 20 17 CFR 200.30–3(a)(12). NASDAQ OMX’s acquisition of BX); and 58179 Commission. The Exchange has satisfied this 1 15 U.S.C. 78s(b)(1). (July 17, 2008), 73 FR 42874 (July 23, 2008) (order requirement. 2 17 CFR 240.19b–4. approving NASDAQ OMX’s acquisition of PHLX).

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competitive advantage and potential trading rules, and will collect and promote just and equitable principles of conflicts of interest between an maintain certain related information.14 trade, to remove impediments to and exchange’s self-regulatory obligations • Third, FINRA will provide a report perfect the mechanism of a free and and its commercial interests.9 Similarly, to the Exchange’s chief regulatory open market and a national market under this proposal, the affiliate officer (‘‘CRO’’), on a quarterly basis, system, and, in general to protect relationship between BX and NES raises that: (i) Quantifies all alerts (of which investors and the public interest, this issue. FINRA is aware) that identify NES as a because the proposed rule change will participant that has potentially violated Recognizing that the Commission has allow the Exchange to continue to Commission or Exchange rules, and (ii) receive inbound orders from an affiliate previously expressed concern regarding lists all investigations that identify NES (NES rather than NOS), acting in its the potential for conflicts of interest in as a participant that has potentially capacity as a facility of PHLX and NOM, instances where a member firm is violated Commission or Exchange rules. in a manner consistent with prior affiliated with an exchange of which it • Fourth, the Exchange has in place approvals and established protections. is a member, the Exchange previously BX 2140(c) which requires The The Exchange believes that these proposed, and the Commission NASDAQ OMX Group, Inc., as the conditions establish mechanisms that approved, limitations and conditions on holding company owning both the 10 protect the independence of the NOS’s affiliation with the Exchange. Exchange and NES, to establish and Exchange’s regulatory responsibility Also recognizing that the Commission maintain procedures and internal with respect to NES, as well as ensure has expressed concern regarding the controls reasonably designed to ensure that NES cannot use any information it potential for conflicts of interest in that NES does not develop or implement may have because of its affiliation with instances where a member firm is changes to its system, based on non- the Exchange to its advantage. affiliated with an exchange to which it public information obtained regarding is routing orders, the Exchange planned changes to the Exchange’s (B) Self-Regulatory Organization’s previously proposed, and the systems as a result of its affiliation with Statement on Burden on Competition Commission approved,11 NOS’s the Exchange, until such information is The Exchange does not believe that affiliation with the Exchange to permit available generally to similarly situated the proposed rule change will impose the Exchange to accept inbound orders Exchange members, in connection with any burden on competition not that NOS routes in its capacity as a the provision of inbound order routing necessary or appropriate in furtherance facility of PHLX and NOM, subject to to the Exchange. of the purposes of the Act. Receiving certain limitations and conditions. The By meeting the above conditions, the orders through NES rather than NOS Exchange now proposes to permit BX to Exchange will have set up mechanisms does not raise any issues of intra-market accept inbound options orders that NES that protect the independence of the competition because it involves (rather than NOS) routes in its capacity Exchange’s regulatory responsibility inbound routing from an affiliated as a facility of PHLX and NOM, subject with respect to NES, as well as exchange. Nor does it result in a burden to the same limitations that currently demonstrate that NES cannot use any on competition among exchanges, apply to BX accepting inbound orders information advantage it may have because there are many competing from PHLX and NOM through NOS, as because of its affiliation with the options exchanges that provide routing follows: Exchange. services, including through an affiliate. For several weeks, the Exchange has • First, the Exchange and FINRA been working with the Financial (C) Self-Regulatory Organization’s maintain a Regulatory Contract, as well Regulatory Authority (‘‘FINRA’’) and Statement on Comments on the as an agreement pursuant to Rule 17d– Proposed Rule Change Received From 12 The Options Clearing Corporation 2 under the Act (‘‘17d–2 Agreement’’). (‘‘OCC’’) to secure the necessary Members, Participants or Others Pursuant to the Regulatory Contract and approvals for NES to perform these No written comments were either the 17d–2 Agreement, FINRA will be functions. The Exchange has now solicited or received. allocated regulatory responsibilities to secured those approvals. The Exchange III. Date of Effectiveness of the review NES’s compliance with certain seeks to complete this process and Exchange rules.13 Pursuant to the Proposed Rule Change and Timing for implement this proposal in January or Commission Action Regulatory Contract, however, BX February. retains ultimate responsibility for Because the foregoing proposed rule enforcing its rules with respect to NES. 2. Statutory Basis change does not: (i) Significantly affect • Second, FINRA will monitor NES The Exchange believes that its the protection of investors or the public for compliance with the Exchange’s proposal is consistent with Section 6(b) interest; (ii) impose any significant of the Act 15 in general, and furthers the burden on competition; and (iii) become 16 9 See Securities Exchange Act Release Nos. 59153 objectives of Section 6(b)(5) of the Act operative for 30 days from the date on (December 23, 2008), 73 FR 80485 (December 31, in particular, in that it is designed to which it was filed, or such shorter time 2008) (SR–NASDAQ–2008–098); and 62736 (August as the Commission may designate, it has 17, 2010), 75 FR 51861 (August 23, 2010) (SR– 14 Pursuant to the Regulatory Contract, both become effective pursuant to Section NASDAQ–2010–100). See also Securities Exchange FINRA and the Exchange will collect and maintain 19(b)(3)(A)(ii) of the Act 17 and Act Release No. 58135 (July 10, 2008), 73 FR 40898 all alerts, complaints, investigations and (July 16, 2008) (SR–NASDAQ–2008– enforcement actions in which NES (in its capacity subparagraph (f)(6) of Rule 19b–4 18 061)(Permitting NOS to be affiliated with PHLX). as a facility of PHLX and NOM routing orders to thereunder. 10 Securities Exchange Act Release No. 67256 BX) is identified as a participant that has (June 26, 2012), 77 FR 39277 (July 2, 2012) (SR–BX– potentially violated applicable Commission or 17 15 U.S.C. 78s(b)(3)(a)(ii). 2012–030). Exchange rules. The Exchange and FINRA will 18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 11 Id. retain these records in an easily accessible manner 4(f)(6) requires a self-regulatory organization to give 12 17 CFR 240.17d–2. in order to facilitate any potential review conducted the Commission written notice of its intent to file 13 NES is also subject to independent oversight by by the Commission’s Office of Compliance the proposed rule change at least five business days FINRA, its designated examining authority, for Inspections and Examinations. prior to the date of filing of the proposed rule compliance with financial responsibility 15 15 U.S.C. 78f(b). change, or such shorter time as designated by the requirements. 16 15 U.S.C. 78f(b)(5). Continued

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At any time within 60 days of the office of the Exchange. All comments II. Self-Regulatory Organization’s filing of the proposed rule change, the received will be posted without change; Statement of the Purpose of, and Commission summarily may the Commission does not edit personal Statutory Basis for, the Proposed Rule temporarily suspend such rule change if identifying information from Change it appears to the Commission that such submissions. You should submit only In its filing with the Commission, the action is: (i) Necessary or appropriate in information that you wish to make self-regulatory organization included the public interest; (ii) for the protection available publicly. All submissions statements concerning the purpose of, of investors; or (iii) otherwise in should refer to File Number SR–BX– and basis for, the proposed rule change furtherance of the purposes of the Act. 2014–004 and should be submitted on and discussed any comments it received If the Commission takes such action, the or before February 24, 2014. on the proposed rule change. The text Commission shall institute proceedings For the Commission, by the Division of of those statements may be examined at to determine whether the proposed rule the places specified in Item IV below. should be approved or disapproved. Trading and Markets, pursuant to delegated authority.19 The Exchange has prepared summaries, IV. Solicitation of Comments Kevin M. O’Neill, set forth in sections A, B, and C below, Interested persons are invited to of the most significant parts of such Deputy Secretary. statements. submit written data, views, and [FR Doc. 2014–02136 Filed 1–31–14; 8:45 am] arguments concerning the foregoing, BILLING CODE 8011–01–P A. Self-Regulatory Organization’s including whether the proposed rule Statement of the Purpose of, and change is consistent with the Act. Statutory Basis for, the Proposed Rule Comments may be submitted by any of SECURITIES AND EXCHANGE Change the following methods: COMMISSION 1. Purpose Electronic Comments: The Exchange proposes to amend its • Use the Commission’s Internet [Release No. 34–71425; File No. SR– rules governing the priority of bids and comment form (http://www.sec.gov/ NYSEArca–2014–04] offers on the Consolidated Book by rules/sro.shtml) or revising the order of priority of bids and • Self-Regulatory Organizations; NYSE Send an email to rule-comments@ offers for orders in open outcry. Arca, Inc.; Notice of Filing of Proposed sec.gov. Please include File Number SR– Specifically, the Exchange proposes to Rule Change to Amend its Rules by BX–2014–004 on the subject line. afford priority to bids and offers Revising the Order of Priority of Bids Paper Comments: represented by Market Makers and Floor and Offers When Executing Orders in Brokers (‘‘Crowd Participants’’) over • Send paper comments in triplicate Open Outcry certain equal-priced bids and offers of to Elizabeth M. Murphy, Secretary, non–Customers 4 on the Consolidated Securities and Exchange Commission, January 28, 2014. Book 5 during the execution of an order 100 F Street NE., Washington, DC 1 Pursuant to Section 19(b)(1) of the in open outcry on the floor of the 20549–1090. Securities Exchange Act of 1934 (the Exchange. All submissions should refer to File ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Current Rule 6.75(a) provides that any Number SR–BX–2014–004. This file notice is hereby given that, on January bids displayed on the Consolidated number should be included on the 15, 2014, NYSE Arca, Inc. (the Book have priority over same-priced subject line if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with bids represented in open outcry. Such Commission process and review your the Securities and Exchange priority is also described in Rule 6.47, comments more efficiently, please use Commission (‘‘Commission’’) the which governs crossing orders in open only one method. The Commission will proposed rule change as described in outcry. Floor Broker crossing post all comments on the Commission’s Items I, II, and III below, which Items transactions, as defined in Rule 6.47, Internet Web site (http://www.sec.gov/ have been prepared by the self- may not trade ahead of equal and better- rules/sro.shtml). Copies of the regulatory organization. The priced bids or offers on the submission, all subsequent Commission is publishing this notice to Consolidated Book. amendments, all written statements solicit comments on the proposed rule Because of the priority afforded to the with respect to the proposed rule change from interested persons. Consolidated Book, Crowd Participants change that are filed with the who have negotiated a large transaction Commission, and all written I. Self-Regulatory Organization’s ultimately may not participate in the communications relating to the Statement of the Terms of the Substance execution. Crowd Participants could proposed rule change between the of the Proposed Rule Change negotiate a transaction with an Commission and any person, other than The Exchange proposes to amend its understanding of the make-up of bids those that may be withheld from the and offers on the Consolidated Book at rules by revising the order of priority of public in accordance with the the beginning of open outcry. However, bids and offers when executing orders provisions of 5 U.S.C. 552, will be as the trade is executed, the in open outcry. The text of the proposed available for Web site viewing and Consolidated Book could update with rule change is available on the printing in the Commission’s Public newly-arriving electronically-entered Reference Room, 100 F Street NE., Exchange’s Web site at www.nyse.com, Washington, DC 20549, on official at the principal office of the Exchange, 4 A non-Customer is a market participant who business days between the hours of and at the Commission’s Public does not meet the definition of Customer as defined 10:00 a.m. and 3:00 p.m. Copies of the Reference Room. in paragraph (c)(6) of Rule 15c3–1 under the filing also will be available for Securities Exchange Act of 1934, as amended. See Rule 6.1(b)(29). 19 inspection and copying at the principal 17 CFR 200.30–3(a)(12). 5 The term ‘‘Consolidated Book’’ means the 1 15 U.S.C.78s(b)(1). Exchange’s electronic book of limit orders for the Commission. The Exchange has satisfied this 2 15 U.S.C. 78a. accounts of Public Customers and broker-dealers, requirement. 3 17 CFR 240.19b–4. and Quotes with Size. See Rule 6.1(b)(37).

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bids and offers that have priority. Given Rule 6.76. Order Ranking and similar rule structure by the CBOE and the speed at which quotes can flicker in Display—OX. Rule 6.76 governs order NYSE MKT.8 the Consolidated Book, Crowd ranking, display and allocation of orders Rule 6.47. Crossing Orders—OX. Rule Participants who have agreed to a on the OX system. The Exchange is 6.47 outlines the procedures used when transaction in open outcry do not know proposing new subparagraph (d) a Floor Broker attempts to cross two if they will actually participate on the outlining the priority of bids and offers orders in open outcry. Under current trade until after execution. on the Consolidated Book against orders rules, Floor Brokers must trade against In order to provide greater executed via open outcry in the Trading all equal-priced Customer and non- opportunity for bids and offers of Crowd Crowd. The proposed text provides a Customer bids and offers on the Participants to participate in an open step-by step-description of the order of Consolidated Book before effecting a outcry transaction and therefore priority afforded bids and offers of both cross transaction in the Trading Crowd. promote larger-sized negotiated Customers and non-Customers on the The Exchange proposes to make transactions, the Exchange proposes to Consolidated Book. The priority applicable changes to Rule 6.47 to restructure its priority rules. As described in proposed subparagraph (d) conform the priority rules applicable to proposed, bids and offers of Crowd is consistent with the proposed changes open outcry cross transactions to the Participants would have priority over to Rule 6.75. proposed changes to Rule 6.75(b) [sic]. equal-priced bids and offers of non- Accordingly, the Exchange proposes to Customers on the Consolidated Book The Exchange also proposes to amend the procedures for each crossing that are ranked in time priority behind include language in subparagraph (d) scenario described in Rule 6.47 by any equal-priced Customer bids and specifying certain OTP Holder stating that Floor Brokers, when offers on the Consolidated Book. As obligations under Section 11(a) of the crossing two orders in open outcry, proposed, equal-priced Customer Act. Specifically, pursuant to Section must yield priority to equal and better- interest would continue to be afforded 11(a)(1)(G) of the Exchange Act and priced Customer bids or offers on the priority over Crowd Participants in the Rule 11a1–1(T) thereunder (the ‘‘G Consolidated Book along with any non- execution of an open outcry transaction. Rule’’), OTP Holders may effect Customer bids and offers ranked ahead In addition, consistent with the existing transactions on the Trading Floor for its of such Customers bids and offers. price/time priority presently applicable own account [sic], the account of an Pursuant to these proposed rule to bids and offers on the Consolidated associated person, or an account with changes, Floor Brokers would continue Book, equal-priced non-Customer bids respect to which it or an associated to be required to trade against equal and and offers ranked in time priority ahead person has investment discretion better-priced Customer bids and offers of Customer interest will also be provided that such transaction yields on the Consolidated Book along with afforded priority over Crowd priority in execution to orders for the bids and offers of non-Customers that Participants in the execution of an open account of persons who are not OTP are ranked ahead of such Customers outcry transaction. The Exchange Holders or associated with OTP before attempting a cross transaction. believes the proposed rule change Holders. The proposed rule text will Consistent with the proposed change to strikes the appropriate balance between confirm that notwithstanding the Rule 6.75(a), Floor Brokers would not be encouraging larger negotiated proposed change to the priority rules required to trade against equal-priced transactions in open outcry while at the governing open outcry trading, an OTP non-Customer bids and offers that are same time protecting Customer interest Holder effecting a transaction on the ranked behind such Customer and non- on the Consolidated Book, and any Trading Floor for its own account, the Customer bids and offers. The Exchange interest that has time priority over such account of an associated person, or an believes that affording priority to Crowd protected Customer interest. account with respect to which it or an Participants ahead of such non- To effect this proposed revision to its associated person has investment Customer interest on the Consolidated priority rules, the Exchange proposes to discretion pursuant to the ‘‘G Rule’’ Book will create an increased incentive amend its rules as follows: must still yield priority to all equal- for block-sized transactions on the Rule 6.75. Priority and Order priced bids or offers on the Trading Floor. Allocation Procedures—Open Outcry. Consolidated Book.6 The proposed rule Rule 6.75(a) presently states that the Examples text is based on the rules of the Chicago highest bid shall have priority but Board Options Exchange, Inc. (‘‘CBOE’’) The revised priority and order allocation where two or more bids for the same and NYSE MKT LLC (‘‘NYSE MKT’’) on procedures would be applied as follows. option contract represent the highest behalf of NYSE Amex Options.7 Ranking of bids on the Consolidated Book price and one such bid is displayed on (assume this for all examples) the Consolidated Book, such bid shall The Exchange believes that including Customer #1—$1.00 bid × 100 have priority over any bid at the post a description of open outcry priority Non-Customer #1—$1.00 bid × 50 (i.e., the trading crowd). The Exchange procedures in Rule 6.76 will serve as a Customer #2—$1.00 bid × 100 proposes to amend Rule 6.75(a) by useful cross reference to the priority Non-Customer #2—$1.00 bid × 200 limiting the priority of bids in the procedures of Rule 6.75. Including such Non-Customer #3—$1.00 bid × 100 Consolidated Book over bids in the a cross reference is consistent with Example 1 trading crowd to just those bids for A Floor Broker enters the trading crowd Customers along with non-Customers 6 The Exchange notes that at this time, none of the with an order to sell 1000 contracts and after that are ranked in time priority ahead of OTP Holders that currently operate on the calling for a market, Crowd Participants such Customers. Exchange’s Trading Floor as Floor Brokers enter respond with a collective bid of $1.00 for orders for their own account, the account of an 1000 contracts. Under current rules, the Floor The Exchange notes that the changes associated person, or an account with respect to made to subsection (a) dealing with the Broker would be required to execute against which it or an associated person has investment all five bids on the Consolidated Book for a discretion. The Exchange notes, however, that priority of ‘‘bids’’ will also effect a total of 550 contracts, thereby limiting the corresponding change to the meaning of FINRA, on behalf of NYSE Regulation, monitors whether Floor Brokers comply with Section 11(a) of Crowd Participants to 450 contracts. subsection (b) dealing with ‘‘offers’’, the Act. although there will be no change to the 7 See CBOE Rule 6.45A(b)(i)(D) and NYSE MKT 8 See CBOE Rule 6.45A(b) and NYSE MKT Rule rule text in subsection (b). Rule 910NY. 964NY(e).

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Pursuant to the proposed revised order of his intent to execute a Facilitation Cross at equal priced non-Customers in the priority, the Floor Broker would execute the $1.00 pursuant to Rule 6.47(b). Under current Consolidated Book. order as follows: rules, the Floor Broker would be required to Customer #1—100 contracts first execute against all five bids on the Non-Substantive Rule Changes Non-Customer #1—50 contracts Consolidated Book for a total of 550 The Exchange is also proposing to Customer #2—100 contracts contracts, leaving 450 contracts to be make non-substantive changes to Trading Crowd—750 contracts allocated between the Facilitation Order and the trading crowd. Of the 450 remaining existing rule text contained in Rules As such, the Floor Broker would execute contracts, the Facilitation Order would be 6.47 and 6.75. Currently, the terms 750 contracts with Crowd Participants allocated 180 contracts (40% of 450) with ‘‘Book’’ and ‘‘Consolidated Book’’ are instead of 450 contracts. Consistent with 270 going to the trading crowd. Pursuant to both used in Rule 6.47 when referring proposed changes to Rule 6.75(a), the Floor the proposed revised order of priority, the Broker yielded priority to all equal-priced to the Exchange’s electronic book of Floor Broker would execute his sell order as Customer interest (Customers #1 and #2), limit orders for the accounts of Public follows: along with bids of non-Customers ranked Customers and broker-dealers, and ahead of such equal priced Customers (non- Customer #1—100 contracts Quotes with Size. The Exchange now Customer #1). After affording priority to such Non-Customer #1—50 contracts proposes to standardize the rule bids on the Consolidated Book, the Floor Customer #2—100 contracts language by replacing ‘‘Book’’ with the Broker executed the balance of the order Firm Facilitation—300 contracts 10 Trading Crowd—450 contracts defined term ‘‘Consolidated Book’’. In against bids from participants in the trading addition, Rules 6.47 and 6.75 currently Consistent with proposed changes to Rule crowd. Because there was sufficient size to use the terms ‘‘in’’ and ‘‘on’’ when execute the entire balance of the order in the 6.75(a), the Floor Broker yielded priority to Trading Crowd, there is no further allocation all equal-priced Customer bids (Customers #1 referring to orders, quotes or bids and to the non-Customers ranked behind and #2), along with bids of non-Customers offers contained on/in the Consolidated Customer interest on the Consolidated Book. ranked ahead of those equal-priced Book. The Exchange now proposes to Example 2 Customers (non-Customer #1). After affording standardize the rule language by priority to such bids on the Consolidated A Floor Broker enters the trading crowd replacing ‘‘in’’ with ‘‘on’’ whenever Book, the Floor Broker was left with 750 with an order to sell 1300 contracts and a referring to orders, quotes and bids and contracts. The Facilitation order is entitled to contra order to buy 500 contracts. After offers on the Consolidated Book. participate on 40% of the balance of the calling for a market, Crowd Participants Agency Order (300 contracts) and the balance Implementation respond with a bid of $1.00 for 500 contracts. of 450 contracts would be allocated to The Floor Broker then announces his intent The Exchange will announce the members of the trading crowd. to execute a Non-Facilitation Cross at $1.00 implementation date of the proposed pursuant to Rule 6.47(a). Under current rules, The Exchange believes that providing rule change by Trader Update to be the Floor Broker would be required to greater opportunity for large-sized published no later than 90 days execute against all five bids on the orders to execute in open outcry while following approval. The implementation Consolidated Book for a total of 550 also protecting Customer interest will date will be no later than 90 days contracts, thereby limiting the Crowd encourage participants to send more Participants and the Floor Broker cross order following the issuance of the Trader liquidity to Floor Brokers, thereby Update. to an aggregate of 750 contracts. Pursuant to resulting in a larger pool of liquidity on the proposed revised order of priority, the the Exchange that would not otherwise 2. Statutory Basis Floor Broker would execute his sell order as follows: be available electronically. The The proposed rule change is Exchange further believes that the 11 Customer #1—100 contracts consistent with Section 6(b) of the Non-Customer #1—50 contracts proposed change in priority will Securities Exchange Act of 1934 (the Customer #2—100 contracts provide an incentive for Crowd ‘‘Act’’), in general, and furthers the Trading Crowd—500 contracts Participants, including Floor-based objectives of Section 6(b)(5),12 in Broker Cross—500 contracts Market Makers, to provide deeper particular, in that it is designed to Non-customer—#2 50 contracts liquidity when participating in open prevent fraudulent and manipulative Consistent with proposed changes to Rule outcry transactions as there will be acts and practices, to promote just and 6.75(a), the Floor Broker yielded priority to greater certainty of an execution. The equitable principles of trade, to foster all equal-priced Customer interest Exchange notes that affording priority to cooperation and coordination with (Customers #1 and #2), along with bids of Crowd Participants over non-Customers persons engaged in facilitating non-Customers ranked ahead of those equal- is not a new or novel idea. Other hybrid transactions in securities, and to remove priced Customers (non-Customer #1). After markets such as the CBOE and NYSE affording priority to such bids on the impediments to and perfect the Consolidated Book, the Floor Broker traded Amex Options afford Crowd mechanisms of a free and open market with members of the trading crowd and then Participants priority over non-Customer and a national market system. The crossed his sell order against his contra-side electronic bids and offers on their Exchange believes that the proposed buy order. The Floor Broker then traded the respective market.9 The only rule change will remove impediments to balance of his sell order against the non- substantive difference between the and perfect the mechanism of a free and Customer bids that were ranked behind priority procedures being proposed in open market by restructuring relative Customer interest on the Consolidated Book. this filing and those presently in place priorities between bids and offers made The non-Customer bids were executed at the CBOE and NYSE Amex Options on the floor compared to non-Customers pursuant to their ranking on the Consolidated is that the Exchange proposes to afford Book based on time priority. in the Consolidated Book in order to priority to bids and offers of non- Example 3 provide an incentive both for Floor Customers on the Consolidated Book, Brokers to represent orders in open A Floor Broker enters the trading crowd ranked ahead of any equal-priced outcry and for Floor-based Market with an Agency Order to sell 1000 contracts Customers on the Consolidated Book, and a buy order for the proprietary account Makers to participate in open outcry of an OTP Firm to facilitate the entire size over members of the trading crowd. On transactions. The Exchange believes that of the Agency Order (’’Facilitation Order’’). the CBOE and NYSE Amex Options, After calling for a market, Crowd Participants crowd participants have priority over all 10 See NYSE Arca Rule 6.1(b)(37). respond with a bid of $1.00 for 1000 11 15 U.S.C. 78f(b). contracts. The Floor Broker then announces 9 Supra Note No. 7. 12 15 U.S.C. 78f(b)(5).

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the negotiated nature of open outcry the Floor Broker, if he can rely on no competitive disadvantage vis-a`-vis other transactions lends itself to larger-sized exception other than the ‘‘G’’ exception Exchanges that operate a trading floor. transactions than the liquidity that is (Section 11(a)(1)(G); Rule 11a1–1(T)), C. Self-Regulatory Organization’s generally available electronically and must, in addition to complying with the Statement on Comments on the the proposed rule change would other requirements of the ‘‘G’’ Proposed Rule Change Received From encourage greater participation in such exemption, yield to all orders in the Members, Participants, or Others open outcry trading by reducing the Consolidated Book at the same price if potential that a negotiated transaction the Floor Broker has no ability to No written comments were solicited would be broken up. The Exchange determine that an order in the or received with respect to the proposed therefore believes that affording priority Consolidated Book is not the order of a rule change. to Crowd Participants ahead of certain non-OTP Holder.14 III. Date of Effectiveness of the non-Customer interest on the The restrictions set forth in NYSE Proposed Rule Change and Timing for Consolidated Book creates an Arca Rule 6.76(d)(4) would not limit in Commission Action opportunity for increased participation any way the obligation of OTP Holders, on open outcry transactions, which while acting as a Floor Broker or Within 45 days of the date of should result in larger-sized negotiated otherwise, to comply with Section 11(a) publication of this notice in the Federal transactions, while at the same time or the rules thereunder. For example, Register or within such longer period (i) protecting Customer interest. The Floor Brokers cannot avoid or as the Commission may designate up to Exchange believes that this in turn will circumvent their obligations under 90 days of such date if it finds such lead to greater competition for orders Section 11(a) when executing a longer period to be appropriate and creating a more robust open outcry transaction on the floor simply by publishes its reasons for so finding or market, which should benefit investors transferring that order to another OTP (ii) as to which the self-regulatory who choose to send orders to the Holder on the floor or to an OTP Holder organization consents, the Commission Exchange. The Exchange further off the floor of the Exchange. OTP will: (A) By order approve or disapprove believes that protecting non-Customer Holders must ensure compliance with the proposed rule change, or interest on the Consolidated Book that Section 11(a) and the rules thereunder, is ranked ahead of Customer interest is (B) institute proceedings to determine including by relying upon an exemption whether the proposed rule change consistent with just and equitable such as those listed above. principles of trade because it maintains should be disapproved. the Exchange’s existing price/time B. Self-Regulatory Organization’s IV. Solicitation of Comments priority rules by protecting interest that Statement on Burden on Competition Interested persons are invited to has time priority over Customer interest The Exchange does not believe that submit written data, views, and that has priority. the proposed rule change will impose In addition, the proposed rule change arguments concerning the foregoing, any burden on competition that is not including whether the proposed rule is consistent with Section 11A(a)(1)(C) necessary or appropriate in furtherance of the Act,13 in which Congress found change is consistent with the Act. The of the purposes of the Act. The Commission solicits comment on the that it is in the public interest and Exchange believes that competition for appropriate for the protection of impact of NYSE Arca’s proposal to participation in open outcry revise its priority scheme with respect investors and the maintenance of fair transactions will be enhanced by and orderly markets to assure, among to non-Customer orders on the allowing the Crowd Participants to Exchange’s Consolidated Book during other things, the economically efficient compete at price points that were execution of securities transactions. The the execution of an order in open outcry previously unavailable because of non- on the Exchange’s floor. Commenters Exchange notes that the proposed rule Customer orders on the Consolidated change is also consistent with Section are invited to address the impact, if any, Book, thereby promoting competition by of the proposed rule change on 11(a) of the Act and the rules encouraging participation in large-sized thereunder. The Exchange believes that competition on the Exchange’s floor and negotiated transactions. In addition, on its Consolidated Book, including the affording priority to OTP Holders because this proposal seeks to adopt present in the trading crowd over impact, if any, on market participants’ rules that are more closely aligned with incentives to post interest on the certain electronic non-Customer orders those of other Exchanges [sic] operating raises no novel issues under Section Consolidated Book, and the reasons for a hybrid market, the Exchange does not 11(a) and the rules thereunder from a any such view. In the Notice, the believe that the proposed rule changes compliance, surveillance or Exchange argues that the proposal will create an undue burden on other enforcement perspective. In other would create an opportunity for markets. Rather, the Exchange believes words, OTP Holders on the Floor are increased crowd participation in open that not approving this proposed rule currently required to comply and are outcry transactions and would lead to change would place the Exchange at a subject to review for compliance with greater competition for orders brought to Section 11(a), and the rules thereunder, the Exchange’s floor. Commenters are when executing transactions in open 14 The Exchange notes that only orders that are invited to address these arguments. represented by a Floor Broker are eligible for outcry and notwithstanding the crossing via the Solicited Order procedures. If the Further, in the Notice, the Exchange proposed rule change, they will still be Floor Broker represents an order for its own states that the proposal will more required to comply with Section 11(a) account, the account of an associated person, or an closely align the Exchange’s rules with and the rules thereunder. For example, account with respect to which it or an associated those of other exchanges operating a person has investment discretion, the member order in cases where an OTP Holder acting as must satisfy the requirements of Section 11(a) of the hybrid market. Commenters also are a Floor Broker is trading for his own Act and the rules thereunder. The Exchange has invited to provide their views on the account and attempts to execute a previously represented that OTP Holders (members) differences and/or similarities between transaction at the same price as one or may not rely on the exception found in Section NYSE Arca’s proposal and the pertinent 11(a)(1)(G) of the Act when utilizing the Solicited CBOE and NYSE MKT priority rules and more orders on the Consolidated Book, Order procedures. See Securities Exchange Act Release No. 54238 (July 28, 2006) 71 FR 44758, how, if at all, the overall priority 13 15 U.S.C. 78k–1(a)(1)(C). 44763 at n.43 (August 7, 2006). structure of the three exchanges (public

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customer/pro rata in comparison to SECURITIES AND EXCHANGE (‘‘NOS’’) for the outbound routing of price/time) impacts their view. COMMISSION options orders and the Exchange also Comments may be submitted by any of updated its equities and options rules to [Release No. 34–71418; File No. SR– the following methods: NASDAQ–2014–008] reflect the use of a third party unaffiliated routing broker.3 Electronic Comments Self-Regulatory Organizations; The Now, the Exchange proposes to • Use the Commission’s Internet NASDAQ Stock Market LLC; Notice of continue to receive orders from its comment form (http://www.sec.gov/ Filing and Immediate Effectiveness of affiliated exchanges. Specifically, the rules/sro.shtml); or Exchange proposes to receive options • Proposed Rule Change to Inbound Send an email to rule-comments@ Routing of Options Orders orders, through NES directly from the sec.gov. Please include File Number SR– options market of NASDAQ OMX PHLX NYSEArca-2014–04 on the subject line. January 28, 2014. LLC (‘‘PHLX’’) 4 as well as from Pursuant to Section 19(b)(1) of the NASDAQ OMX BX, Inc. (‘‘BX’’),5 under Paper Comments Securities Exchange Act of 1934 the same terms and conditions as NOS • Send paper comments in triplicate (‘‘Act’’) 1, and Rule 19b–4 thereunder,2 currently does. BX and PHLX have filed to Elizabeth M. Murphy, Secretary, notice is hereby given that on January to use NES for outbound routing,6 as Securities and Exchange Commission, 15, 2014, The NASDAQ Stock Market well as to receive options orders routed 100 F Street NE., Washington, DC LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed from PHLX through NES.7 20549–1090. with the Securities and Exchange NOS and NES are broker-dealers and All submissions should refer to File Commission (‘‘SEC’’ or ‘‘Commission’’) members of NASDAQ, PHLX and BX. Number SR–NYSEArca-2014–04. This the proposed rule change as described Currently, NOS provides all options file number should be included on the in Items I, II, and III, below, which Items routing functions for BX Options, PHLX, subject line if email is used. To help the have been prepared by the Exchange. and NOM. BX, NASDAQ, NOM, PHLX, Commission process and review your The Commission is publishing this NES and NOS are affiliates.8 comments more efficiently, please use notice to solicit comments on the Accordingly, the affiliate relationship only one method. The Commission will proposed rule change from interested between NASDAQ and NOS, its post all comments on the Commission’s persons. member, raises the issue of an exchange’s affiliation with a member of Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s such exchange. Specifically, in rules/sro.shtml). Copies of the Statement of the Terms of Substance of connection with prior filings, the submission, all subsequent the Proposed Rule Change amendments, all written statements Commission has expressed concern that with respect to the proposed rule The Exchange proposes to permit the the affiliation of an exchange with one change that are filed with the NASDAQ Options Market (‘‘NOM’’) to of its members raises the potential for Commission, and all written receive inbound orders in options unfair competitive advantage and communications relating to the routed through Nasdaq Execution potential conflicts of interest between proposed rule change between the Services, LLC (‘‘NES’’) from affiliated an exchange’s self-regulatory obligations Commission and any person, other than exchanges, as described in detail below. and its commercial interests.9 Similarly, those that may be withheld from the II. Self-Regulatory Organization’s under this proposal, the affiliate public in accordance with the Statement of the Purpose of, and relationship between NASDAQ and NES provisions of 5 U.S.C. 552, will be Statutory Basis for, the Proposed Rule raises this issue. available for Web site viewing and Change Recognizing that the Commission has previously expressed concern regarding printing in the Commission’s Public In its filing with the Commission, the Reference Room, 100 F Street NE., the potential for conflicts of interest in Exchange included statements instances where a member firm is Washington, DC 20549–1090, on official concerning the purpose of and basis for business days between the hours of affiliated with an exchange of which it the proposed rule change and discussed is a member, the Exchange previously 10:00 a.m. and 3:00 p.m. Copies of such any comments it received on the filing also will be available for proposed, and the Commission proposed rule change. The text of these approved, limitations and conditions on inspection and copying at the principal statements may be examined at the office of the Exchange. All comments places specified in Item IV below. The 3 received will be posted without change; See SR–NASDAQ–2014–007. Exchange has prepared summaries, set 4 Securities Exchange Act Release No. 58135 (July the Commission does not edit personal forth in sections A, B, and C below, of 10, 2008), 73 FR 40898 (July 16, 2008) (SR– identifying information from the most significant aspects of such NASDAQ–2008–061). 5 submissions. You should submit only statements. Securities Exchange Act Release No. 67256 information that you wish to make (June 26, 2012), 77 FR 39277 (July 2, 2012) (SR–BX– (A) Self-Regulatory Organization’s 2012–030). available publicly. All submissions 6 Statement of the Purpose of, and See SR–BX–2014–003 and SR–Phlx–2014–004. should refer to File Number SR– 7 See SR–BX–2014–004 and SR–Phlx–2014–005. NYSEArca-2014–04, and should be Statutory Basis for, the Proposed Rule 8 See Securities Exchange Act Release Nos. 58324 submitted on or before February 24, Change (August 7, 2008), 73 FR 46936 (August 12, 2008) 2014. (SR–BSE–2008–02; SR–BSE–2008–23; SR–BSE– 1. Purpose 2008–25; SR–BSECC–2008–01) (order approving For the Commission, by the Division of The purpose of the filing is to permit NASDAQ OMX’s acquisition of BX); and 58179 Trading and Markets, pursuant to delegated the receipt of inbound orders routed (July 17, 2008), 73 FR 42874 (July 23, 2008) (order authority.15 approving NASDAQ OMX’s acquisition of PHLX). from affiliated exchanges in options 9 Kevin M. O’Neill, See Securities Exchange Act Release Nos. 59153 through NES. The Exchange filed a (December 23, 2008), 73 FR 80485 (December 31, Deputy Secretary. proposed rule change to use NES rather 2008) (SR–NASDAQ–2008–098); and 62736 (August [FR Doc. 2014–02141 Filed 1–31–14; 8:45 am] than Nasdaq Options Services LLC 17, 2010), 75 FR 51861 (August 23, 2010) (SR– NASDAQ–2010–100). See also Securities Exchange BILLING CODE 8011–01–P Act Release No. 58135 (July 10, 2008), 73 FR 40898 1 15 U.S.C. 78s(b)(1). (July 16, 2008)(SR–NASDAQ–2008–061)(Permitting 15 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. NOS to be affiliated with PHLX).

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NOS’s affiliation with the Exchange. NASDAQ OMX Group, Inc., as the (B) Self-Regulatory Organization’s Also recognizing that the Commission holding company owning both the Statement on Burden on Competition has expressed concern regarding the Exchange and NES, to establish and The Exchange does not believe that potential for conflicts of interest in maintain procedures and internal the proposed rule change will impose instances where a member firm is controls reasonably designed to ensure any burden on competition not affiliated with an exchange to which it that NES does not develop or implement is routing orders, the Exchange necessary or appropriate in furtherance changes to its system, based on non- of the purposes of the Act. Receiving previously proposed, and the public information obtained regarding Commission approved,10 NOS’s orders through NES rather than NOS planned changes to the Exchange’s does not raise any issues of intra-market affiliation with the Exchange to permit systems as a result of its affiliation with the Exchange to accept inbound orders competition because it involves the Exchange, until such information is inbound routing from an affiliated that NOS routes in its capacity as a available generally to similarly situated facility of PHLX and BX, subject to exchange. Nor does it result in a burden Exchange members, in connection with certain limitations and conditions. The on competition among exchanges, the provision of inbound order routing Exchange now proposes to permit NOM because there are many competing to the Exchange. to accept inbound options orders that options exchanges that provide routing NES (rather than NOS) routes in its By meeting the above conditions, the services, including through an affiliate. capacity as a facility of PHLX and BX, Exchange will have set up mechanisms (C) Self-Regulatory Organization’s subject to the same limitations that that protect the independence of the Statement on Comments on the currently apply to NOM accepting Exchange’s regulatory responsibility Proposed Rule Change Received From inbound orders from PHLX and BX with respect to NES, as well as Members, Participants or Others through NOS, as follows: demonstrate that NES cannot use any • First, the Exchange and FINRA information advantage it may have No written comments were either maintain a Regulatory Contract, as well because of its affiliation with the solicited or received. as an agreement pursuant to Rule 17d– Exchange. III. Date of Effectiveness of the 2 under the Act (‘‘17d–2 Agreement’’).11 For several weeks, the Exchange has Proposed Rule Change and Timing for Pursuant to the Regulatory Contract and Commission Action the 17d–2 Agreement, FINRA will be been working with the Financial allocated regulatory responsibilities to Regulatory Authority (‘‘FINRA’’) and Because the foregoing proposed rule review NES’s compliance with certain The Options Clearing Corporation change does not: (i) Significantly affect Exchange rules.12 Pursuant to the (‘‘OCC’’) to secure the necessary the protection of investors or the public Regulatory Contract, however, NASDAQ approvals for NES to perform these interest; (ii) impose any significant retains ultimate responsibility for functions. The Exchange has now burden on competition; and (iii) become enforcing its rules with respect to NES. secured those approvals. The Exchange operative for 30 days from the date on • Second, FINRA will monitor NES seeks to complete this process and which it was filed, or such shorter time for compliance with the Exchange’s implement this proposal in January or as the Commission may designate, it has trading rules, and will collect and February. become effective pursuant to Section maintain certain related information.13 19(b)(3)(A)(ii) of the Act 16 and 2. Statutory Basis • Third, FINRA will provide a report subparagraph (f)(6) of Rule 19b–4 to the Exchange’s chief regulatory The Exchange believes that its thereunder.17 officer (‘‘CRO’’), on a quarterly basis, proposal is consistent with Section 6(b) At any time within 60 days of the that: (i) Quantifies all alerts (of which of the Act 14 in general, and furthers the filing of the proposed rule change, the FINRA is aware) that identify NES as a objectives of Section 6(b)(5) of the Act 15 Commission summarily may participant that has potentially violated in particular, in that it is designed to temporarily suspend such rule change if Commission or Exchange rules, and (ii) promote just and equitable principles of it appears to the Commission that such lists all investigations that identify NES trade, to remove impediments to and action is: (i) Necessary or appropriate in as a participant that has potentially perfect the mechanism of a free and the public interest; (ii) for the protection violated Commission or Exchange rules. • open market and a national market of investors; or (iii) otherwise in Fourth, the Exchange has in place furtherance of the purposes of the Act. NASDAQ 2140(c) which requires The system, and, in general to protect investors and the public interest, If the Commission takes such action, the Commission shall institute proceedings 10 See Securities Exchange Act Release Nos. because the proposed rule change will 58135 (July 10, 2008), 73 FR 40898 (July 16, 2008) allow the Exchange to continue to to determine whether the proposed rule (SR–NASDAQ–2008–061); and 69755 (June 13, receive inbound orders from an affiliate should be approved or disapproved. 2013), 78 FR 36800 (June 19, 2013) (SR–NASDAQ– 2013–070). (NES rather than NOS), acting in its IV. Solicitation of Comments 11 capacity as a facility of PHLX and BX, 17 CFR 240.17d–2. Interested persons are invited to 12 NES is also subject to independent oversight by in a manner consistent with prior FINRA, its designated examining authority, for approvals and established protections. submit written data, views, and arguments concerning the foregoing, compliance with financial responsibility The Exchange believes that these requirements. including whether the proposed rule conditions establish mechanisms that 13 Pursuant to the Regulatory Contract, both change is consistent with the Act. FINRA and the Exchange will collect and maintain protect the independence of the all alerts, complaints, investigations and Exchange’s regulatory responsibility 16 enforcement actions in which NES (in its capacity with respect to NES, as well as ensure 15 U.S.C. 78s(b)(3)(a)(ii). as a facility of PHLX and BX routing orders to 17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– NOM) is identified as a participant that has that NES cannot use any information it 4(f)(6) requires a self-regulatory organization to give potentially violated applicable Commission or may have because of its affiliation with the Commission written notice of its intent to file Exchange rules. The Exchange and FINRA will the Exchange to its advantage. the proposed rule change at least five business days retain these records in an easily accessible manner prior to the date of filing of the proposed rule in order to facilitate any potential review conducted change, or such shorter time as designated by the by the Commission’s Office of Compliance 14 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this Inspections and Examinations. 15 15 U.S.C. 78f(b)(5). requirement.

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Comments may be submitted by any of SECURITIES AND EXCHANGE (A) Self-Regulatory Organization’s the following methods: COMMISSION Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Electronic Comments [Release No. 34–71421; File No. SR–BX– Change • Use the Commission’s Internet 2014–003] 1. Purpose comment form (http://www.sec.gov/ rules/sro.shtml); or Self-Regulatory Organizations; The purpose of the proposal is to NASDAQ OMX BX, Inc.; Notice of Filing update the Exchange’s rules to reflect • Send an email to rule-comments@ and Immediate Effectiveness of the ability to route orders to other sec.gov. Please include File Number SR– Proposed Rule Change to Outbound exchanges using either the Exchange’s NASDAQ–2014–008 on the subject line. Routing affiliated broker-dealer or a third party Paper Comments unaffiliated broker-dealer, which the January 28, 2014. Exchange may choose to use for • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the efficiency and potential cost savings. to Elizabeth M. Murphy, Secretary, Securities Exchange Act of 1934 Today, the relevant Exchange rules Securities and Exchange Commission, (‘‘Act’’),1 and Rule 19b–4 thereunder,2 provide that the Exchange shall route 100 F Street NE., Washington, DC notice is hereby given that on January orders in options via NOS and in 20549–1090. 15, 2014, NASDAQ OMX BX, Inc. (‘‘BX’’ equities via NES. Both NOS and NES are All submissions should refer to File or ‘‘Exchange’’) filed with the Securities affiliates and members of BX. As a Number SR–NASDAQ–2014–008. This and Exchange Commission (‘‘SEC’’ or result, certain conditions have been file number should be included on the ‘‘Commission’’) the proposed rule imposed on the existing routing 3 subject line if email is used. To help the change as described in Items I, II, and arrangements. III, below, which Items have been Commission process and review your Replacing NOS With NES comments more efficiently, please use prepared by the Exchange. The The Exchange proposes to amend its only one method. The Commission will Commission is publishing this notice to rules to provide that it shall use NES for post all comments on the Commission’s solicit comments on the proposed rule routing orders in options rather than Internet Web site (http://www.sec.gov/ change from interested persons. NOS. The Exchange has determined to rules/sro.shtml). I. Self-Regulatory Organization’s use NES for outbound routing in Copies of the submission, all Statement of the Terms of Substance of options, in addition to equities. The subsequent amendments, all written the Proposed Rule Change Exchange originally set up its affiliated statements with respect to the proposed The Exchange proposes to use Nasdaq broker-dealers as two separate entities. rule change that are filed with the Execution Services, LLC (‘‘NES’’) as Now, the Exchange believes that this is Commission, and all written opposed to Nasdaq Options Services unnecessary and costly. Accordingly, communications relating to the LLC (‘‘NOS’’) for outbound order pursuant to BX Rules, Chapter VI, proposed rule change between the routing from the BX Options market, as Section 11, NES will now be the Commission and any person, other than explained further below. The Exchange outbound routing broker for BX those that may be withheld from the also proposes to permit the Exchange to Options. As the new Routing Facility for public in accordance with the route equities and options orders options, NES will operate the same way provisions of 5 U.S.C. 552, will be through NES either directly or through as NOS currently does, in terms of available for Web site viewing and a third party routing broker-dealer, as routing options orders to destination printing in the Commission’s Public explained further below. options exchanges. This is substantially Reference Room, 100 F Street NE., The text of the proposed rule change similar to NYSEArca’s use of its affiliate Washington, DC 20549, on official is available on the Exchange’s Web site Archipelago Securities LLC for order business days between the hours of at http://nasdaqomxbx. routing in both equities and options. 10:00 a.m. and 3:00 p.m. Copies of the cchwallstreet.com/, at the principal filing also will be available for Third-Party Routing Broker office of the Exchange, and at the inspection and copying at the principal Commission’s Public Reference Room. The Exchange also proposes to codify office of the Exchange. All comments in its rules the ability to use a third- received will be posted without change; II. Self-Regulatory Organization’s party routing broker to route to away the Commission does not edit personal Statement of the Purpose of, and exchanges, rather than routing directly identifying information from Statutory Basis for, the Proposed Rule through NES, for both equities and submissions. You should submit only Change options. To date, the Exchange has used information that you wish to make a third-party routing broker in equities In its filing with the Commission, the available publicly. All submissions and is amending Rule 4758 to clarify Exchange included statements should refer to File Number SR– this and incorporate the use of a third- concerning the purpose of and basis for NASDAQ–2014–008 and should be party routing broker expressly into that the proposed rule change and discussed submitted on or before February 24, rule. Specifically, today, the Exchange any comments it received on the 2014 routes equities orders to away markets proposed rule change. The text of these through NES, which, in turn, sometimes For the Commission, by the Division of statements may be examined at the routes directly to away markets; in Trading and Markets, pursuant to delegated places specified in Item IV below. The authority.18 addition, sometimes when the Exchange Exchange has prepared summaries, set routes equities orders through NES Kevin M. O’Neill, forth in sections A, B, and C below, of today, NES routes those orders through Deputy Secretary. the most significant aspects of such a third-party routing broker. [FR Doc. 2014–02134 Filed 1–31–14; 8:45 am] statements. BILLING CODE 8011–01–P 3 See, e.g., Securities Exchange Act Release No. 1 15 U.S.C. 78s(b)(1). 67256 (June 26, 2012), 77 FR 39277 (July 2, 2012) 18 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. (SR–BX–2012–030) at 39280.

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In options, the Exchange currently affiliate of the routing broker (and if the its own transaction fees.8 Sometimes, it routes options orders to NOS, which routing broker or any of its affiliates will not make economic sense for NES routes directly to away markets. The engages in any other business activities to access an exchange directly. Exchange proposes to use NES, rather other than providing routing services to Accordingly, the Exchange intends to than NOS, as explained above, and to the Exchange, between the segment of use a routing broker where the Exchange have NES route either directly to other the routing broker or affiliate that determines that it is appropriate. In options exchanges or to a third-party provides the other business activities addition to costs, the Exchange will also routing broker (which will, in turn, and the segment of the routing broker consider ease of connectivity and route to other options exchanges). The that provides the routing services).5 execution as well as general reliability Exchange proposes to amend Chapter This way, this provision extends to the in selecting a routing broker. VI, Section 11 of BX Options rules routing broker, if one is used. For several weeks, the Exchange has accordingly. In both the proposed equities and been working with the Financial Regardless of whether a third-party options rules, the Exchange proposes to Regulatory Authority (‘‘FINRA’’) and routing broker is used in either equities provide that the Exchange may not use The Options Clearing Corporation or options, all routing will go through a routing broker for which the Exchange (‘‘OCC’’) to secure the necessary NES, but the Exchange could determine or any affiliate of the Exchange is the approvals for NES to perform these to direct NES to route orders to certain designated examining authority. This is functions. The Exchange has now exchanges using a routing broker rather similar to the existing provisions that do secured those approvals. The Exchange than routing an order directly. not permit the Exchange to be the seeks to complete this process and The Exchange previously stated that designated examining authority for its implement this proposal in January or from time to time, it may use non- affiliated routing brokers.6 February. affiliate third-party broker-dealers to The Exchange also proposes to provide outbound routing services (i.e., expressly state in Rule 4758(b)(1) and 2. Statutory Basis third-party Routing Brokers).4 In those BX Options Rules, Chapter VI, Section The Exchange believes that its cases, orders are submitted to the third- 11(e) that the Exchange will determine proposal is consistent with Section 6(b) party Routing Broker through the the logic that provides when, how, and of the Act 9 in general, and furthers the affiliated routing broker, and the third- where orders are routed away to other objectives of Section 6(b)(5) of the Act 10 party Routing Broker routes the orders exchanges. In addition, the routing in particular, in that it is designed to to the routing destination in its name. broker(s) cannot change the terms of an promote just and equitable principles of Under this proposal, the relevant order or the routing instructions, nor trade, to remove impediments to and rules would now expressly provide that does the routing broker have any perfect the mechanism of a free and the Exchange could use one or more discretion about where to route an open market and a national market third-party unaffiliated routing broker- order. This is consistent with, but more system, and, in general to protect dealers (‘‘routing brokers’’). Specifically, specific than, the current language that investors and the public interest, by the Exchange proposes to amend BX states that routing is performed under providing an alternative routing Options Rules, Chapter VI, Section 11, the direction of the Exchange.7 arrangement. The proposal should which applies to options, to refer to The Exchange may determine to use remove impediments to and perfect the such routing brokers. The Exchange a different routing broker by product or mechanism of a free and open market proposes to similarly amend Rule by destination exchange, depending and a national market system by 4758(b) respecting equities. The upon the costs and technological providing customer order protection Exchange proposes to further amend its efficiencies involved. The proposal is and by facilitating trading at away rules with respect to certain policies intended to allow the Exchange to exchanges so customer orders trade at and procedures. Specifically, BX structure its routing arrangements the best market price. The proposal Options Rules, Chapter VI, Section 11(e) accordingly. At a minimum, the should also protect investors and the and BX Rule 4758 currently provide that Exchange anticipates using a routing public interest by fostering compliance the Exchange shall establish and broker to access certain markets where with the Options Order Protection and maintain procedures and internal the Exchange finds that the costs of Locked/Crossed Market Plan. The controls reasonably designed to maintaining a membership (for NES) Exchange also believes that the proposal adequately restrict the flow of and/or the costs of connectivity and to use NES rather than NOS for options confidential and proprietary execution do not make sense in light of routing is designed to promote just and information between the Exchange and the number or types of orders the equitable principles of trade and to the Routing Facility, and any other Exchange typically routes to that protect investors and the public interest, entity, including any affiliate of the particular market. These costs by eliminating the costs and Routing Facility. The Exchange necessarily determine the ultimate costs inefficiencies associated with operating proposes to amend those rules to to the Exchange of routing to a market, a separate broker-dealer for options provide that, where there is a routing and, in turn, affect how the Exchange routing. In addition, the Exchange broker, the Exchange shall establish and chooses to recoup those costs through believes that the proposal is not maintain procedures and internal designed to permit unfair controls reasonably designed to 5 This is substantially similar to NYSEArca Rule discrimination between customers, adequately restrict the flow of 6.96(a)(8). issuers, brokers, or dealers, because confidential and proprietary 6 See BX Options Chapter VI, Section 11(e) there are specific protections pertaining information between the Exchange, the (which currently provides that NOS is a broker- to the routing broker in light of the dealer that is a member of an unaffiliated SRO Routing Facility and any routing broker, which is the designated examining authority for the potential conflict of interest where the and any other entity, including any broker-dealer) and Rule 4758(b)(4) (which currently provides that the designated examining authority of 8 For these reasons, today, transaction fees for 4 See Securities Exchange Act Release Nos. 67280 NES shall be a self-regulatory organization orders vary depending on the Market where an (June 27, 2012), 77 FR 39552 (July 3, 2012) (SR–BX– unaffiliated with the Exchange or any of its order is ultimately executed. See e.g., BX Rule 7000 2012–034) at note 6; and 68394 (December 10, affiliates). This is also substantially similar to series and BX Options Rules, Chapter XV. 2012), 77 FR 74524 (December 14, 2012) (SR–BX– NYSEArca Rule 6.96(a)(7). 9 15 U.S.C. 78f(b). 2012–073) at note 4. 7 This is based on NYSEArca Rule 6.96(a)(1)(A). 10 15 U.S.C. 78f(b)(5).

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member routing broker could have If the Commission takes such action, the For the Commission, by the Division of access to information regarding other Commission shall institute proceedings Trading and Markets, pursuant to delegated members’ orders or the routing of those to determine whether the proposed rule authority.14 orders. These protections include the should be approved or disapproved. Kevin M. O’Neill, Exchange’s control over all routing logic Deputy Secretary. IV. Solicitation of Comments as well as the confidentiality of routing [FR Doc. 2014–02137 Filed 1–31–14; 8:45 am] 11 information. Interested persons are invited to BILLING CODE 8011–01–P (B) Self-Regulatory Organization’s submit written data, views, and Statement on Burden on Competition arguments concerning the foregoing, including whether the proposed rule SMALL BUSINESS ADMINISTRATION The Exchange does not believe that change is consistent with the Act. [Disaster Declaration #13829 and #13830] the proposed rule change will impose Comments may be submitted by any of any burden on competition not the following methods: necessary or appropriate in furtherance Illinois Disaster Number IL–00043 of the purposes of the Act. The proposal Electronic Comments AGENCY: Small Business Administration. is pro-competitive because it enables • ACTION: Amendment 1. broker-dealers other than NOS and NES Use the Commission’s Internet comment form (http://www.sec.gov/ to provide routing services to the SUMMARY: This is an amendment of the Exchange, which has the potential to rules/sro.shtml ); or • Presidential declaration of a major reduce the Exchange’s costs of routing Send an email to rule-comments@ disaster for the State of Illinois (FEMA— orders and, potentially, the fees the sec.gov. Please include File Number SR– 4157—DR), dated 11/26/2013. Exchange charges for routed orders. The BX–2014–003 on the subject line. Incident: Severe storms, straight-line proposal does not raise issues of intra- Paper Comments winds, and tornadoes. market competition, because the Incident Period: 11/17/2013. Exchange’s decision to route through a • Send paper comments in triplicate Effective Date: 01/24/2014. particular routing broker would impact to Elizabeth M. Murphy, Secretary, Physical Loan Application Deadline all participants equally. Securities and Exchange Commission, Date: 02/03/2014. 100 F Street NE., Washington, DC (C) Self-Regulatory Organization’s EIDL Loan Application Deadline Date: 20549–1090. Statement on Comments on the 08/26/2014. Proposed Rule Change Received From All submissions should refer to File ADDRESSES: Submit completed loan Members, Participants, or Others Number SR–BX–2014–003. This file applications to: U.S. Small Business Administration, Processing And No written comments were either number should be included on the Disbursement Center, 14925 Kingsport solicited or received. subject line if email is used. To help the Commission process and review your Road, Fort Worth, TX 76155. III. Date of Effectiveness of the comments more efficiently, please use FOR FURTHER INFORMATION CONTACT: A. Proposed Rule Change and Timing for only one method. The Commission will Escobar, Office of Disaster Assistance, Commission Action post all comments on the Commission’s U.S. Small Business Administration, Because the foregoing proposed rule Internet Web site (http://www.sec.gov/ 409 3rd Street SW., Suite 6050, change does not: (i) Significantly affect rules/sro.shtml). Copies of the Washington, DC 20416. the protection of investors or the public submission, all subsequent SUPPLEMENTARY INFORMATION: The notice interest; (ii) impose any significant amendments, all written statements of the President’s major disaster burden on competition; and (iii) become with respect to the proposed rule declaration for the State of Illinois, operative for 30 days from the date on change that are filed with the dated 11/26/2013 is hereby amended to which it was filed, or such shorter time Commission, and all written extend the deadline for filing as the Commission may designate, it has communications relating to the applications for physical damages as a become effective pursuant to Section proposed rule change between the result of this disaster to 02/03/2014. 19(b)(3)(A)(ii) of the Act 12 and Commission and any person, other than All other information in the original subparagraph (f)(6) of Rule 19b–4 those that may be withheld from the declaration remains unchanged. 13 public in accordance with the thereunder. (Catalog of Federal Domestic Assistance At any time within 60 days of the provisions of 5 U.S.C. 552, will be Numbers 59002 and 59008). filing of the proposed rule change, the available for Web site viewing and Commission summarily may printing in the Commission’s Public James E. Rivera, temporarily suspend such rule change if Reference Room, 100 F Street NE., Associate Administrator, for Disaster it appears to the Commission that such Washington, DC 20549, on official Assistance. action is: (i) Necessary or appropriate in business days between the hours of [FR Doc. 2014–02120 Filed 1–31–14; 8:45 am] the public interest; (ii) for the protection 10:00 a.m. and 3:00 p.m. Copies of the BILLING CODE 8025–01–P of investors; or (iii) otherwise in filing also will be available for furtherance of the purposes of the Act. inspection and copying at the principal office of the Exchange. All comments SMALL BUSINESS ADMINISTRATION 11 See proposed Rules 4758(b)(1) and (8) and BX received will be posted without change; Options Rules, Chapter VI, Section 11(e). the Commission does not edit personal Military Reservist Economic Injury 12 15 U.S.C. 78s(b)(3)(a)(ii). identifying information from Disaster Loans Interest Rate for 13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Second Quarter FY 2014. 4(f)(6) requires a self-regulatory organization to give submissions. You should submit only the Commission written notice of its intent to file information that you wish to make In accordance with the Code of the proposed rule change at least five business days available publicly. All submissions Federal Regulations 13—Business Credit prior to the date of filing of the proposed rule should refer to File Number SR–BX– change, or such shorter time as designated by the and Assistance § 123.512, the following Commission. The Exchange has satisfied this 2014–003 and should be submitted on requirement. or before February 24, 2014. 14 17 CFR 200.30–3(a)(12).

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interest rate is effective for Military I. Authority Zuni Point corridors of the park and Reservist Economic Injury Disaster 1. Sec. 35001(b)(2) in title V of the 1672 out of a total of 49,011 annual Loans approved on or after January 21, Moving Ahead for Progress in the 21st allocations authorized to be flown 2014. Century Act (MAP–21), Public Law elsewhere in the SFRA. The FAA Military Reservist Loan Program, 112–141 signed July 6, 2012, directs the intends to provide these allocations to 4.000% Administrator of the Federal Aviation commercial air tour operators that Dated: January 27, 2014. Administration (FAA) and the Secretary currently hold allocations in proportion to the number of QT operations that are James E. Rivera, of the Interior to provide incentives for flown by the respective operators in commercial air tour operators that Associate Administrator for Disaster these areas of the park during the first Assistance. convert to quiet aircraft technology six months of 2014. Consistent with Sec. (QT), such as increasing the flight [FR Doc. 2014–02122 Filed 1–31–14; 8:45 am] 93.321(b)(4)(ii), allocations provided in allocations for such operators on a net BILLING CODE 8025–01–P the Dragon and Zuni Point corridors basis consistent with section 804(c) of may be transferred for use outside of the National Parks Air Tour these corridors, while allocations Management Act of 2000 (title VIII of provided for use elsewhere in the SFRA Pub. L. 106–181), provided that the DEPARTMENT OF TRANSPORTATION may not be transferred into the Dragon cumulative impact of such operations Federal Aviation Administration and Zuni Point corridors. does not increase noise at Grand Canyon 2. Consistent with the FAA and NPS National Park (‘‘the park’’). Appendix A Quiet Aircraft Technology Incentive for approach to QT incentives, the FAA has of 14 CFR Part 93, Subpart U, ‘‘Special selected the first six months of calendar Commercial Air Tour Operators in Flight Rules in the Vicinity of Grand Grand Canyon National Park year 2014 as the basis for the release of Canyon National Park,’’ contains FAA held allocations to recognize the AGENCY: Federal Aviation procedures for determining the QT progress made to date by operators that Administration, Transportation. designation for aircraft in the park. have already invested in QT and to 2. Under 14 CFR Part 93, Subpart U, ACTION: Release of FAA-held allocations encourage additional QT operations in an allocation is defined as authorization for quiet aircraft technology in Grand 2014. The FAA will use the first and to conduct a commercial air tour in the Canyon National Park. second quarter operator reports required Grand Canyon National Park Special under Sec. 93.325 to determine the SUMMARY: The Moving Ahead for Flight Rules Area (SFRA). Sec. 93.319 numbers of QT operations by each Progress in the 21st Century Act (MAP– and 93.321 provide for the authorized operator in the Dragon and Zuni Point 21) directs the Administrator of the annual number and the management of corridors and elsewhere in the SFRA, Federal Aviation Administration (FAA) allocations, and Sec. 93.325 requires air respectively. An operation will be and the Secretary of the Interior to tour operators to file quarterly reports considered QT if conducted in an provide incentives for commercial air with the FAA and specifies the content aircraft that meets the noise limits tour operators in Grand Canyon of those reports. Since the effective date identified in Appendix A of 14 CFR Part National Park that convert to quiet of this regulation, a limited number of 93, Subpart U. Aircraft meeting those aircraft technology. The FAA holds a authorized annual allocations have noise limits are listed in Appendices I limited number of flight allocations that reverted from commercial air tour and II of FAA Advisory Circular AC– are authorized under 14 CFR part 93, operators to the FAA. 93–2, ‘‘Noise Levels for Aircraft Used Subpart U, ‘‘Special Flight Rules in the 3. This Federal Register Notice for Commercial Operations in Grand Vicinity of Grand Canyon National announces the FAA’s intent, in Canyon National Park Special Flight Park.’’ The FAA, in consultation with consultation with the NPS, to release Rules Area.’’ The FAA’s receipt of the the National Park Service (NPS), intends the allocations it currently holds, second quarter reports, due by the end to provide these allocations to amounting to 49 allocations in the of July, will enable the FAA to complete commercial air tour operators that Dragon and Zuni Point corridors of the its analysis and provide its allocations currently hold allocations in proportion park and 1672 allocations elsewhere in by September to round out the 2014 air to the number of quiet aircraft the park SFRA, to commercial air tour tour season. In the FAA’s experience, technology operations that are flown by operators that currently hold allocations additional allocations have not been respective operators in the first six in proportion to the number of QT needed by operators earlier than months of calendar year 2014. This is a operations that are flown by the September. This is a one-time release of one-time release of FAA-held respective operators in these areas FAA-held allocations that will be allocations that will be available to during the first six months of calendar available to operators for quiet aircraft operators for quiet aircraft technology year 2014. These allocations are within technology flights during the 2014 air flights during the 2014 air tour season the total annual number that are tour season and beyond. The additional and beyond. The FAA and NPS are authorized to be flown in the Dragon allocations and the condition that they continuing to make progress on and Zuni Point corridors and elsewhere be used for QT operations will be additional quiet aircraft technology in the SFRA, respectively, under 14 CFR reflected in the operations specifications incentives for commercial air tour Part 93, Subpart U. They will be used of individual operators. for operations using QT, as defined in operators in Grand Canyon National III. Environmental Considerations Park. Appendix A of 14 CFR Part 93, Subpart U. As provided in MAP–21, the FOR FURTHER INFORMATION CONTACT: cumulative impact of operations using Keith Lusk—Mailing address: Federal II. Description of Quiet Aircraft FAA-held allocations does not increase Aviation Administration, P.O. Box Technology Incentive noise at the park. The 49 FAA 92007, Los Angeles, California 90009– 1. The FAA currently holds 49 out of allocations in the Dragon and Zuni 2007. Telephone: (310) 725–3808. Email a total of 44,960 annual allocations Point corridors are 0.1% of the total address: [email protected]. authorized to be flown by commercial 44,960 allocations authorized in those SUPPLEMENTARY INFORMATION: air tour operators in the Dragon and corridors. The 1672 FAA allocations

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comprise 3.4% of the total 49,011 activities by mail to either: Mr. Robert activities will have practical utility; (ii) allocations authorized elsewhere in the Brogan, Office of Safety, Planning and the accuracy of FRA’s estimates of the SFRA. In addition, there are 254,013 air Evaluation Division, RRS–21, Federal burden of the information collection tour operations authorized as of 2013 Railroad Administration, 1200 New activities, including the validity of the under contract with the Hualapai tribe Jersey Ave., SE., Mail Stop 17, methodology and assumptions used to that are exempt from allocations— Washington, DC 20590, or Ms. Kimberly determine the estimates; (iii) ways for bringing the total authorized number of Toone, Office of Information FRA to enhance the quality, utility, and air tour operations in the park to Technology, RAD–20, Federal Railroad clarity of the information being 347,984. The 1721 total FAA allocations Administration, 1200 New Jersey Ave. collected; and (iv) ways for FRA to are 0.5% of the total 347,984 authorized SE., Mail Stop 35, Washington, DC minimize the burden of information air tour operations. Analysis shows that 20590. Commenters requesting FRA to collection activities on the public by such a small number of QT operations acknowledge receipt of their respective automated, electronic, mechanical, or on existing routes will not cumulatively comments must include a self-addressed other technological collection increase noise at the park and will not stamped postcard stating, ‘‘Comments techniques or other forms of information diminish the substantial restoration of on OMB control number 2130–0552.’’ technology (e.g., permitting electronic natural quiet. The provision of FAA- Alternatively, comments may be submission of responses). See 44 U.S.C. held allocations to commercial air tour transmitted via facsimile to (202) 493– 3506(c)(2)(A)(i)–(iv); 5 CFR operators through amendments to their 6216 or (202) 493–6497, or via email to 1320.8(d)(1)(i)–(iv). FRA believes that operations specifications is categorically Mr. Brogan at [email protected], or soliciting public comment will promote excluded from more detailed to Ms. Toone at [email protected]. its efforts to reduce the administrative environmental review. Please refer to the assigned OMB control and paperwork burdens associated with Issued in Hawthorne, CA on: January 28, number in any correspondence the collection of information mandated 2014. submitted. FRA will summarize by Federal regulations. In summary, Dale Bouffiou, comments received in response to this FRA reasons that comments received notice in a subsequent notice and Deputy Regional Administrator, Western- will advance three objectives: (i) Reduce Pacific Region, Federal Aviation include them in its information reporting burdens; (ii) ensure that it Administration. collection submission to OMB for organizes information collection approval. [FR Doc. 2014–02184 Filed 1–31–14; 8:45 am] requirements in a ‘‘user friendly’’ format to improve the use of such information; BILLING CODE 4910–13–P FOR FURTHER INFORMATION CONTACT: Mr. Robert Brogan, Office of Planning and and (iii) accurately assess the resources Evaluation Division, RRS–21, Federal expended to retrieve and produce DEPARTMENT OF TRANSPORTATION Railroad Administration, 1200 New information requested. See 44 U.S.C. Jersey Ave. SE., Mail Stop 17, 3501. Federal Railroad Administration Washington, DC 20590 (telephone: (202) Below are brief summaries of three currently approved information [Docket No. FRA 2014–0011–N–1] 493–6292) or Ms. Kimberly Toone, Office of Information Technology, RAD– collection activities that FRA will Proposed Agency Information 20, Federal Railroad Administration, submit for clearance by OMB as Collection Activities; Comment 1200 New Jersey Ave. SE., Mail Stop 35, required under the PRA: Request Washington, DC 20590 (telephone: (202) Title: Locomotive Cab Sanitation 493–6132). (These telephone numbers Standards AGENCY: Federal Railroad are not toll-free.) OMB Control Number: 2130–0552 Administration (FRA), Department of SUPPLEMENTARY INFORMATION: The Type of Request: Extension of a Transportation (DOT). Paperwork Reduction Act of 1995 currently approved collection ACTION: Notice. (PRA), Public Law 104–13, sec. 2, 109 Abstract: The collection of Stat. 163 (1995) (codified as revised at information is used by FRA to promote SUMMARY: In accordance with the 44 U.S.C. 3501–3520), and its rail safety and the health of railroad Paperwork Reduction Act of 1995 and implementing regulations, 5 CFR part workers by ensuring that all locomotive its implementing regulations, the 1320, require Federal agencies to crew members have access to toilet/ Federal Railroad Administration (FRA) provide 60-days notice to the public for sanitary facilities—on as needed basis— hereby announces that it is seeking comment on information collection which are functioning and hygienic. renewal of the following currently activities before seeking approval for Also, the collection of information is approved information collection request reinstatement or renewal by OMB. 44 used by FRA to ensure that railroads (ICR). Before submitting this ICR for U.S.C. 3506(c)(2)(A); 5 CFR 1320.8(d)(1), repair defective locomotive toilet/ clearance by the Office of Management 1320.10(e)(1), 1320.12(a). Specifically, sanitary facilities within 10 calendar and Budget (OMB), FRA is soliciting FRA invites interested respondents to days of the date on which these units public comment on specific aspects of comment on the following summary of becomes defective. the activities identified below. proposed information collection Form Number(s): N/A. DATES: Comments must be received no activities regarding (i) whether the Affected Public: Businesses. later than April 4, 2014. information collection activities are Frequency of Submission: One-time. ADDRESSES: Submit written comments necessary for FRA to properly execute Respondent Universe: 744 railroads. on any or all of the following proposed its functions, including whether the Reporting Burden:

Average time CFR section Respondent universe Total annual responses per response Total annual (seconds) burden hours

229.137 (d)—Defective Locomotive Toilet Fa- 744 railroads ...... 11,700 tags/notices ...... 90 293 cility—Tagging.

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Average time CFR section Respondent universe Total annual responses per response Total annual (seconds) burden hours

229.137 (e) Defective But Sanitary Loco- 744 railroads ...... 7,956 tags/notices ...... 90 199 motive Toilet Facility—Tagging. 229.137 (f) Switching or Transfer Service— 744 railroads ...... 93,600 notations ...... 30 780 Defective Locomotive Toilet Facility—Nota- tion on Daily Inspection Report.

Total Estimated Responses: 113,256. statements for consideration. Due to to participate must be made with Linda Total Estimated Annual Burden: limited conference lines, notification of Rivera. For more information please 1,272 hours. intent to participate must be made with contact: Ms. Rivera at 1–888–912–1227 Status: Regular Review. Timothy Shepard. For more information or (202) 317–3337, or write TAP Office, Pursuant to 44 U.S.C. 3507(a) and 5 please contact Mr. Shepard at 1–888– 1111 Constitution Avenue NW., Room CFR 1320.5(b), 1320.8(b)(3)(vi), FRA 912–1227 or 206–220–6095, or write 1509- National Office, Washington, DC informs all interested parties that it may TAP Office, 915 2nd Avenue, MS W– 20224, or contact us at the Web site: not conduct or sponsor, and a 406, Seattle, WA 98174, or contact us at http://www.improveirs.org. respondent is not required to respond the Web site: http://www.improveirs.org. The committee will be discussing to, a collection of information unless it The agenda will include a discussion Toll-free issues and public input is displays a currently valid OMB control on various letters, and other issues welcomed. number. related to written communications from Dated: January 29, 2014. Authority: 44 U.S.C. 3501–3520. the IRS. Otis Simpson, Dated: Issued in Washington, DC., on Dated: January 29, 2014. Acting Director, Taxpayer Advocacy Panel. January 23, 2014. Otis Simpson, [FR Doc. 2014–02171 Filed 1–31–14; 8:45 am] Rebecca Pennington, Acting Director, Taxpayer Advocacy Panel. BILLING CODE 4830–01–P Chief Financial Officer. [FR Doc. 2014–02167 Filed 1–31–14; 8:45 am] [FR Doc. 2014–02176 Filed 1–31–14; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY BILLING CODE 4910–06–P DEPARTMENT OF THE TREASURY Internal Revenue Service DEPARTMENT OF THE TREASURY Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Taxpayer Internal Revenue Service Open Meeting of the Taxpayer Communications Project Committee Advocacy Panel Toll-Free Phone Line AGENCY: Open Meeting of the Taxpayer Project Committee. Internal Revenue Service (IRS), Advocacy Panel Notices and Treasury. Correspondence Project Committee AGENCY: Internal Revenue Service (IRS), ACTION: Notice of Meeting. Treasury. AGENCY: Internal Revenue Service (IRS), ACTION: Notice of Meeting. SUMMARY: An open meeting of the Treasury. Taxpayer Advocacy Panel Taxpayer ACTION: Notice of Meeting. SUMMARY: An open meeting of the Communications Project Committee will Taxpayer Advocacy Panel Toll-Free be conducted. The Taxpayer Advocacy SUMMARY: An open meeting of the Phone Line Project Committee will be Panel is soliciting public comments, Taxpayer Advocacy Panel Notices and conducted. The Taxpayer Advocacy ideas, and suggestions on improving Correspondence Project Committee will Panel is soliciting public comments, customer service at the Internal Revenue be conducted. The Taxpayer Advocacy ideas, and suggestions on improving Service. Panel is soliciting public comments, customer service at the Internal Revenue DATES: The meeting will be held ideas, and suggestions on improving Service. Thursday, February 20, 2014. customer service at the Internal Revenue DATES: The meeting will be held FOR FURTHER INFORMATION CONTACT: Service. Wednesday, February 19, 2014. Ellen Smiley or Patti Robb at 1–888– DATES: The meeting will be held FOR FURTHER INFORMATION CONTACT: 912–1227 or 414–231–2360. Wednesday, February 19, 2014. Linda Rivera at 1–888–912–1227 or SUPPLEMENTARY INFORMATION: Notice is FOR FURTHER INFORMATION CONTACT: (202) 317–3337. hereby given pursuant to Section Timothy Shepard at 1–888–912–1227 or SUPPLEMENTARY INFORMATION: Notice is 10(a)(2) of the Federal Advisory 206–220–6095. hereby given pursuant to Section Committee Act, 5 U.S.C. App. (1988) SUPPLEMENTARY INFORMATION: Notice is 10(a)(2) of the Federal Advisory that an open meeting of the Taxpayer hereby given pursuant to Section Committee Act, 5 U.S.C. App. (1988) Advocacy Panel Taxpayer 10(a)(2) of the Federal Advisory that an open meeting of the Taxpayer Communications Project Committee will Committee Act, 5 U.S.C. App. (1988) Advocacy Panel Toll-Free Phone Line be held Thursday, February 20, 2014, at that a meeting of the Taxpayer Project Committee will be held 2:00 p.m. Eastern Time via Advocacy Panel Notices and Wednesday, February 19, 2014 at 2:30 teleconference. The public is invited to Correspondence Project Committee will p.m. Eastern Time via teleconference. make oral comments or submit written be held Wednesday, February 19, 2014, The public is invited to make oral statements for consideration. Due to at 12 p.m. Eastern Time via comments or submit written statements limited conference lines, notification of teleconference. The public is invited to for consideration. Due to limited intent to participate must be made with make oral comments or submit written conference lines, notification of intent Ms. Ellen Smiley or Ms. Patti Robb. For

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more information please contact Ms. Families Program Office, National ADDRESSES: Written comments may be Smiley or Ms. Robb at 1–888–912–1227 Center on Homelessness Among submitted through www.regulations.gov; or 414–231–2360, or write TAP Office Veterans, 4100 Chester Avenue, Suite by mail or hand-delivery to the Director, Stop 1006MIL, 211 West Wisconsin 201, Philadelphia, PA 19104; (877) 737– Regulations Management (02REG), Avenue, Milwaukee, WI 53203–2221, or 0111 (this is a toll-free number); SSVF@ Department of Veterans Affairs, 810 post comments to the Web site: http:// va.gov. Vermont Avenue NW., Room 1068, www.improveirs.org. Dated: January 29, 2014. Washington, DC 20420; or by fax to The committee will be discussing (202) 273–9026. Copies of comments various issues related to Taxpayer William F. Russo, Deputy Director, Office of Regulation and received will be available for public Communications and public input is inspection in the Office of Regulation welcome. Policy, Office of the General Counsel, Department of Veterans Affairs. Policy and Management, Room 1063B, Dated: January 29, 2014. [FR Doc. 2014–02147 Filed 1–31–14; 8:45 am] between the hours of 8:00 a.m. and 4:30 Otis Simpson, BILLING CODE 8320–01–P p.m., Monday through Friday (except Acting Director, Taxpayer Advocacy Panel. holidays). Call (202) 461–4902 for an [FR Doc. 2014–02174 Filed 1–31–14; 8:45 am] appointment. (This is not a toll-free BILLING CODE 4830–01–P DEPARTMENT OF VETERANS number.) In addition, during the AFFAIRS comment period, comments may be viewed online through the Federal DEPARTMENT OF VETERANS Notice of Intent to Grant an Exclusive Docket Management System at http:// AFFAIRS License www.regulations.gov. Veterans Health Administration; AGENCY: Office of Research and FOR FURTHER INFORMATION CONTACT: Funding Availability Under Supportive Development, Department of Veterans Director of Technology Transfer Services for Veteran Families Program Affairs. Program, Office of Research and ACTION: Notice of Intent. Development (10P9TT), Department of AGENCY: Department of Veterans Affairs. Veterans Affairs, 810 Vermont Avenue ACTION: Notice; correction. SUMMARY: Notice is hereby given that NW., Washington, DC 20420, (202) 443– 5640. (This is not a toll-free number.) SUMMARY: The Department of Veterans the Department of Veterans Affairs (VA), Affairs (VA) published a Notice of Office of Research and Development SUPPLEMENTARY INFORMATION: It is in the Funding Availability in the Federal (ORD), intends to grant to Xenex public interest to license this invention Register on January 14, 2014, that Healthcare Services, LLC, 121 Interpark to Xenex Healthcare Services, LLC, to contained an error. Specifically, the Suite 104, San Antonio, TX 78216, USA, facilitate the development and table on page 2539 mistakenly listed one an exclusive license to practice the commercialization of a device to clean of the priority 1 Continuums of Care following: U.S. Provisional Patent medical equipment and track cleaned (CoCs) as ‘‘GA–500 Atlanta/Roswell/ Application Serial No. 61/678,558, equipment. The prospective exclusive DeKalb/Fulton.’’ GA–500 has split into ‘‘Using Pulsed Xenon technology to license will be royalty-bearing and will three CoCs: GA–500—Atlanta, GA– clean reusable medical equipment and comply with the terms and conditions 502—Fulton County, and GA–508— track cleaning using RFID technology,’’ of 35 U.S.C. 209 and 37 CFR 404.7. The DeKalb County. filed August 1, 2012, and any prospective exclusive license may be This document corrects the error by subsequent non-provisional patent granted, unless VA ORD receives replacing, on line 12 of the table, ‘‘GA– application(s) that will claim the benefit written evidence and argument within 500’’ with ‘‘GA–500’’, ‘‘GA–502’’, and of U.S. Provisional Patent Application 15 days from the date of this published GA–508’’ in the first column; replacing Serial No. 61/678,558, ‘‘Using Pulsed Notice, which establishes that the grant ‘‘Atlanta/Roswell/DeKalb, Fulton Xenon technology to clean reusable of the license would not be consistent Counties CoC’’ with ‘‘Atlanta CoC’’, medical equipment and track cleaning with the requirements of 35 U.S.C. 209 ‘‘FultonCounty/Roswell CoC’’, and using RFID technology.’’ Copies of the and 37 CFR 404.7. ‘‘DeKalb County CoC’’ in the second published patent applications may be column; and replacing ‘‘6,000,000’’ with obtained from the U.S. Patent and Approved: January 27, 2014. ‘‘3,000,000’’, ‘‘1,500,000’’, and Trademark Office at www.uspto.gov. Jose D. Riojas, ‘‘1,500,000’’. DATES: Comments must be received Chief of Staff, Department of Veterans Affairs. FOR FURTHER INFORMATION CONTACT: John within fifteen (15) days from the date of [FR Doc. 2014–02180 Filed 1–31–14; 8:45 am] Kuhn, Supportive Services for Veteran this published Notice. BILLING CODE 8320–01–P

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Part II

Securities and Exchange Commission

Public Company Accounting Oversight Board; Notice of Filing of Proposed Rules on Amendments To Conform the Board’s Rules and Forms to the Dodd-Frank Act and Make Certain Updates and Clarifications; Notice

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SECURITIES AND EXCHANGE adoption of applicable Rules of the body or other entity empowered by a COMMISSION Board under Section 103 of the Act, in foreign government to conduct accordance with then applicable inspections of public accounting firms [Release No. 34–71237; File No. PCAOB– 2013–03) generally accepted auditing standards or otherwise to administer or enforce for such purposes)], for the purpose of laws related to the regulation of public Public Company Accounting Oversight expressing an opinion on the financial accounting firms. Board; Notice of Filing of Proposed [such] statements or providing an audit * * * * * Rules on Amendments To Conform the report. (n)(i) Reserved Board’s Rules and Forms to the Dodd- [Note: Effective [insert effective date Frank Act and Make Certain Updates of Rule 4020T], pursuant to Rule 4020T, * * * * * and Clarifications when used in Rule 3502, Section 5 of the Rules of the Board, or the definition (o)(i) Other Accounting Services January 6, 2014. of ‘‘disciplinary proceeding’’ in Rule The term ‘‘other accounting services’’ Pursuant to Section 107(b) of the 1001(d)(i), the term ‘‘audit’’ has the means assurance and related services Sarbanes-Oxley Act of 2002 (the ‘‘Act’’), meaning provided in Section 110 of the that are reasonably related to the notice is hereby given that on December Act.] performance of the audit or review of 23, 2013, the Public Company the [issuer’s] client’s financial (a)(vi) Audit Report Accounting Oversight Board (the statements, other than audit services. ‘‘Board’’ or the ‘‘PCAOB’’) filed with the The term ‘‘audit report’’ means a * * * * * Securities and Exchange Commission document, report, notice, or other (p)(i) Person Associated With a Public (the ‘‘Commission’’) the proposed rules record— Accounting Firm (and Related Terms) described in items I and II below, which (1) prepared following an audit The terms ‘‘person associated with a items have been prepared by the Board. performed for purposes of compliance public accounting firm’’ (or with a The Commission is publishing this by an issuer, broker, or dealer with the ‘‘registered public accounting firm’’ or notice to solicit comments on the requirements of the securities laws; and ‘‘applicant’’) and ‘‘associated person of proposed rules from interested persons. (2) in which a public accounting firm a public accounting firm’’ (or of a either— ‘‘registered public accounting firm’’ or I. Board’s Statement of the Terms of (i) sets forth the opinion of that firm ‘‘applicant’’) mean any individual Substance of the Proposed Rules regarding a financial statement, report, proprietor, partner, shareholder, notice, or other document, procedures, On December 4, 2013, the Board principal, accountant, or professional or controls; or adopted amendments to conform the employee of a public accounting firm, or Board’s rules and forms to the Dodd- (ii) asserts that no such opinion can be expressed. any independent contractor or entity Frank Wall Street Reform and Consumer that, in connection with the preparation Protection Act (the ‘‘Dodd-Frank Act’’) [Note: Effective [insert effective date or issuance of any audit report— and make certain updates and of Rule 4020T], pursuant to Rule 4020T, (1) shares in the profits of, or receives clarifications (collectively, the when used in Rule 3502, Section 5 of compensation in any other form from, ‘‘proposed rules’’). The text of the the Rules of the Board, or the definition that firm; or proposed rules is set out below. of ‘‘disciplinary proceeding’’ in Rule (2) participates as agent or otherwise 1001(d)(i), the term ‘‘audit report’’ has Amendments to Board Rules, Interim on behalf of such accounting firm in any the meaning provided in Section 110 of Quality Control Standards, and Ethics activity of that firm; the Act.] Code provided, however, that these terms do (a)(vii) Audit Services not include a person engaged only in The Board is amending Sections 1, 2, clerical or ministerial tasks, or, for (1) With respect to issuers, t[T]he term 3, 4, 5, and 7 of its rules, Sections purposes of completing a registration ‘‘audit services’’ means professional 1000.08(m) and 1000.43, Appendix I of application on Form 1, Part IX of an services rendered for the audit of an the Interim Quality Control Standards, annual report on Form 2, or Part IV of issuer’s annual financial statements, and and its Ethics Code as set out below. a Form 4 filed to succeed to the (if applicable) for the reviews of an Language deleted by these amendments registration status of a predecessor, issuer’s financial statements included in is bracketed. Language that is added is these terms do not include [or] a person the issuer’s quarterly reports or services set in Italic. whom the public accounting firm that are normally provided by the Rules of the Board reasonably believes is a person accountant in connection with statutory primarily associated with another SECTION 1. GENERAL PROVISIONS and regulatory filings or engagements registered public accounting firm. Rule 1001. Definitions of Terms for those fiscal years;[.] (2) With respect to brokers and Note: Section 2(a)(9)(C) of the Act Employed in Rules dealers, the term ‘‘audit services’’ means provides that, for purposes of, among When used in the Rules, unless the professional services rendered for the other things, Section 105 of the Act, and context otherwise requires: audit of a broker’s or dealer’s annual the Board’s rules thereunder, the terms * * * * * financial statements, supporting defined in Rule 1001(p)(i) shall include schedules, supplemental reports, and any person associated, seeking to (a)(v) Audit for the report on either a broker’s or become associated, or formerly The term ‘‘audit’’ means an dealer’s compliance report or exemption associated with a public accounting examination of the financial statements, report, as described in Rule 17a–5(g) firm, except that: reports, documents, procedures, under the Exchange Act. (1) the authority to conduct an controls, or notices of any issuer, broker, investigation of such person under or dealer by an independent public (f)(iii) Foreign Auditor Oversight Section 105(b) of the Act shall apply accounting firm in accordance with the Authority only with respect to any act or practice, rules of the Board or the Commission The term ‘‘foreign auditor oversight or omission to act, by the person while [(or, for the period preceding the authority’’ means any governmental such person was associated or seeking

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to become associated with a registered made only once during the issuer’s, (2) a person from being associated public accounting firm; and broker’s, or dealer’s fiscal year. with a registered public accounting (2) the authority to commence a * * * * * firm. disciplinary proceeding under Section * * * * * 105(c)(1) of the Act, or impose sanctions (p)[(iii)](v) Party against such person under Section The term ‘‘party’’ means the SECTION 2. REGISTRATION AND 105(c)(4) of the Act, shall apply only interested division, any person named REPORTING with respect to: as a respondent in an order instituting Part 1—Registration of Public (i) conduct occurring while such proceedings or notice of a hearing, any Accounting Firms person was associated or seeking to applicant named in the caption of any become associated with a registered order, or any person seeking Board Rule 2100. Registration Requirements public accounting firm; or review of a decision. for Public Accounting Firms * * * * * (ii) non-cooperation, as described in [Effective October 22, 2003 (or, for Section 105(b)(3) of the Act, with (p)(vi) Professional Standards foreign public accounting firms, July 19, respect to a demand in a Board The term ‘‘professional standards’’ 2004),] E[e]ach public accounting firm investigation for testimony, documents, that— or other information relating to a period means— when such person was associated or (A) accounting principles that are— (a) prepares or issues any audit report (i) established by the standard setting seeking to become associated with a with respect to any issuer, broker, or body described in section 19(b) of the registered public accounting firm. dealer; or Securities Act [of 1933, as amended by (b) plays a substantial role in the (p)(ii) Play a Substantial Role in the the Act], or prescribed by the preparation or furnishing of an audit Preparation or Furnishing of an Audit Commission under section 19(a) of the report with respect to any issuer, broker, Report Securities Act [of 1933] or section 13(b) or dealer must be registered with the of the [Securities] Exchange Act [of The phrase ‘‘play a substantial role in Board. 1934]; and the preparation or furnishing of an audit (ii) relevant to audit reports for Note 1: As set forth in Section report’’ means— particular issuers, brokers, or dealers, or 106(a)(1) of the Act, registration with (1) to perform material services that a dealt with in the quality control system the Board pursuant to this Rule will not public accounting firm uses or relies on of a particular registered public by itself provide a basis for subjecting a in issuing all or part of its audit report accounting firm; and foreign public accounting firm to the [with respect to any issuer], or (B) auditing standards, standards for jurisdiction of the U.S. federal or State (2) to perform the majority of the attestation engagements, quality control courts, other than with respect to audit procedures with respect to a policies and procedures, ethical and controversies between such firms and subsidiary or component of any issuer, competency standards, and the Board. broker, or dealer, the assets or revenues independence standards (including Note 2: The issuance of a consent to of which constitute 20% or more of the rules implementing Title II of the Act) include an audit report for a prior consolidated assets or revenues of such that the Board or the Commission period by a public accounting firm, issuer, broker, or dealer necessary for determines— the principal auditor [accountant] to (i) relate to the preparation or which does not currently have and does issue an audit report [on the issuer]. issuance of audit reports for issuers, not expect to have an engagement with an issuer, broker, or dealer to prepare or Note 1: For purposes of paragraph (1) brokers, or dealers; and (ii) are established or adopted by the issue, or to play a substantial role in the of this definition, the term ‘‘material preparation or furnishing of an audit services’’ means services, for which the Board under section 103(a) of the Act, or are promulgated as rules of the report with respect to any issuer, broker, engagement hours or fees constitute or dealer will not by itself require a 20% or more of the total engagement Commission. [Note: Effective [insert effective date public accounting firm to register under hours or fees, respectively, provided by Rule 2100. the principal auditor [accountant] in of Rule 4020T], pursuant to Rule 4020T, connection with the issuance of all or when used in Rule 3502, Section 5 of Rule 2106. Action on Applications for part of its audit report [with respect to the Rules of the Board, or the definition Registration. any issuer]. The term does not include of ‘‘disciplinary proceeding’’ in Rule (a) Standard for Approval. non-audit services provided to non- 1001(d)(i), the term ‘‘professional audit clients. standards’’ has the meaning provided in After reviewing the application for Note 2: For purposes of paragraph (2) Section 110 of the Act.] registration, any additional information of this definition, the phrase ‘‘subsidiary * * * * * provided by the applicant, and any or component’’ is meant to include any (s)[(iii)](vi) Secretary other information obtained by the subsidiary, division, branch, office or Board, the Board will determine The term ‘‘Secretary’’ means the other component of an issuer, broker, or whether approval of the application for Secretary of the Board. dealer, regardless of its form of registration is consistent with the organization and/or control relationship (s)(iv) Suspension Board’s responsibilities under the Act to with the issuer, broker, or dealer. The term ‘‘suspension’’ means a protect the interests of investors and to Note 3: For purposes of determining temporary disciplinary sanction, which further the public interest in the ‘‘20% or more of the consolidated assets lapses by its own terms, prohibiting— preparation of informative, accurate, or revenues’’ under paragraph (2) of this (1) a registered public accounting firm and independent audit reports [for Rule, this determination should be from preparing or issuing, or companies the securities of which are made at the beginning of the issuer’s, participating in the preparation or sold to, and held by and for, public broker’s, or dealer’s fiscal year using issuance of, any audit report [with investors]. prior year information and should be respect to any issuer]; or * * * * *

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Rule 2107. Withdrawal from to be registered after the mandatory registration date, the Interim Attestation Registration registration date and to associated Standards apply to public accounting * * * * * persons of those firms, as if those firms firms that would be required to be were registered public accounting registered after the mandatory (d) Board Action firms.] registration date and to associated Within 60 days of Board receipt of a [Rule 3201T. Temporary Transitional persons of those firms, as if those firms completed Form 1–WD, the Board may Provision for PCAOB Auditing Standard were registered public accounting order that withdrawal of registration be No. 2, ‘‘An Audit of Internal Control firms.] delayed for a period of up to eighteen Over Financial Reporting Performed in Rule 3400T. Interim Quality Control months from the date of such receipt if Conjunction With an Audit of Financial Standards the Board determines that such Statements.’’] A registered public accounting firm, withdrawal would be inconsistent with [(a) Notwithstanding Auditing and its associated persons, shall comply the Board’s responsibilities under the Standard No. 2, in connection with the with quality control standards, as Act, including its responsibilities to audit of an issuer that does not file described in— conduct— Management’s annual report on internal control over financial reporting in (a) the AICPA’s Auditing Standards (1) inspections to assess the degree of Board’s Statements on Quality Control compliance of each registered public reliance on SEC Release No. 34–50754, Order Under Section 36 of the Securities Standards, as in existence on April 16, accounting firm and associated persons 2003 (AICPA Professional Standards, of that firm with the Act, the rules of the Exchange Act of 1934 Granting an Exemption from Specified Provisions of QC §§ 20–40 (AICPA 2002)), to the Board, the rules of the Commission, or extent not superseded or amended by professional standards, in connection Exchange Act Rules 13a–1 and 15d–1 (November 30, 2004), a registered public the Board; and with its performance of audits, issuance (b) the AICPA SEC Practice Section’s accounting firm and its associated of audit reports, and related matters Requirements of Membership (d), persons need not:] involving issuers, brokers, or dealers; or [(f)(first sentence),] (l), (m), (n)(1) and [(1) Date the auditor’s report on * * * * * (o), as in existence on April 16, 2003 management’s assessment of the (AICPA SEC Practice Section Manual SECTION 3. AUDITING AND effectiveness of internal control over § 1000.08(d), [(f),] (j), (m), (n)(1) and (o)), RELATED PROFESSIONAL PRACTICE financial reporting with the same date to the extent not superseded or STANDARDS as the auditor’s report on the issuer’s amended by the Board. Part 1—General Requirements financial statements, provided that the date of the auditor’s report on Note: The AICPA SEC Practice Rule 3101. Certain Terms Used in management’s assessment of the Section’s Requirements of Membership Auditing and Related Professional effectiveness of internal control over only apply to those registered public Practice Standards financial reporting is later than the date accounting firms that were members of the AICPA SEC Practice Section on * * * * * of the auditor’s report on the issuer’s April 16, 2003. [(c) The documentation requirement financial statements; or] [(2) Add a paragraph to the auditor’s [Note: The second sentence of in paragraph (a)(2) is effective for audits requirement (f) of the AICPA SEC of financial statements or other separate report on the financial statements of an issuer that refers to a Practice Section’s Requirements of engagements with respect to fiscal years Membership provided for the AICPA’s ending on or after November 15, 2004.] separate report on management’s assessment of the effectiveness of peer review committee to ‘‘authorize Rule 3200T. Interim Auditing Standards internal control over financial alternative procedures’’ when the requirement for a concurring review In connection with the preparation or reporting.] could not be met because of the size of issuance of any audit report, a registered [(b) This temporary rule will expire the firm. This provision is not adopted public accounting firm, and its on July 15, 2005.] as part of the Board’s Interim Quality associated persons, shall comply with Rule 3300T. Interim Attestation Control Standards. After the effective generally accepted auditing standards, Standards date of the Interim Quality Control as described in the AICPA Auditing Standards, requests for authorization of Standards Board’s Statement of In connection with an engagement (i) alternative procedures to a concurring Auditing Standards No. 95, as in described in the AICPA’s Auditing review may, however, be directed to the existence on April 16, 2003 Standards Board’s Statement on Board.] (Codification of Statements on Auditing Standards for Attestation Engagements Standards, AU § 150 (AICPA 2002)), to No. 10 (Codification of Statements on [Note: The Board intends that, during the extent not superseded or amended Auditing Standards, AT § 101.01 the period preceding the mandatory by the Board. (AICPA 2002)) and (ii) related to the registration date, the Interim Quality [Note: Under Section 102(a) of the preparation or issuance of audit reports Control Standards apply to public Act, public accounting firms are not [for issuers], a registered public accounting firms that would be required required to be registered with the Board accounting firm, and its associated to be registered after the mandatory until 180 days after the date of the persons, shall comply with the AICPA registration date and to associated determination of the Commission under Auditing Standards Board’s Statements persons of those firms, as if those firms section 101(d) that the Board has the on Standards for Attestation were registered public accounting capacity to carry out the requirements of Engagements, and related firms.] Title I of the Act (the ‘‘mandatory interpretations and Statements of Part 5—Ethics and Independence registration date’’). The Board intends Position, as in existence on April 16, that, during the period preceding the 2003, to the extent not superseded or Rule 3500T. Interim Ethics and mandatory registration date, the Interim amended by the Board. Independence Standards Auditing Standards apply to public [Note: The Board intends that, during (a) In connection with the preparation accounting firms that would be required the period preceding the mandatory or issuance of any audit report, a

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registered public accounting firm, and issuers, if no such committee or board audit client only because he or she its associated persons, shall comply of directors (or equivalent body) exists serves as a member of the board of with ethics standards, as described in with respect to the entity, ‘‘audit directors or similar management or the AICPA’s Code of Professional committee’’ means the person(s) who governing body of the audit client; Conduct Rule 102, and interpretations oversee(s) the accounting and financial (b) the person is in a financial and rulings thereunder, as in existence reporting processes of the entity and reporting oversight role at the issuer on April 16, 2003 (AICPA Professional audits of the financial statements of the audit client only because of the person’s Standards, ET §§ 102 and 191 (AICPA entity. relationship to an affiliate of the entity 2002)), to the extent not superseded or * * * * * being audited— amended by the Board. (1) whose financial statements are not (i)(ii) Investment Company Complex [Note: The Board intends that, during material to the consolidated financial statements of the entity being audited; the period preceding the mandatory (1) The term ‘‘investment company or registration date, the Interim Ethics complex’’ includes— (2) whose financial statements are Standards apply to public accounting * * * * * audited by an auditor other than the firms that would be required to be (iii) Any investment company or firm or an associated person of the firm; registered after the mandatory entity that would be an investment or registration date and to associated company but for the exclusions (c) the person was not in a financial persons of those firms, as if those firms provided by section 3(c) of the reporting oversight role at the issuer were registered public accounting Investment Company Act [of 1940] (15 audit client before a hiring, promotion, firms.] U.S.C. § 80a–(c)) that has an investment or other change in employment event (b) In connection with the preparation adviser or sponsor included in this and the tax services are— or issuance of any audit report, a definition by either paragraph (i) or (ii) (1) provided pursuant to an registered public accounting firm, and of this definition. engagement in process before the hiring, its associated persons, shall comply * * * * * promotion, or other change in with independence standards— employment event; and (1) as described in the AICPA’s Code Subpart 1—Independence (2) completed on or before 180 days of Professional Conduct Rule 101, and Rule 3520. Auditor Independence after the hiring or promotion event. interpretations and rulings thereunder, Note: In an engagement for an issuer A registered public accounting firm as in existence on April 16, 2003 audit client whose financial statements and its associated persons must be (AICPA Professional Standards, ET for the first time will be required to be independent of the firm’s audit client §§ 101 and 191 (AICPA 2002)), to the audited pursuant to the standards of the throughout the audit and professional extent not superseded or amended by PCAOB, the provision of tax services to engagement period. the Board; and a person covered by Rule 3523 before (2) Standards Nos. 2 and 3, and Note 1: Under Rule 3520, a registered the earlier of the date that the firm: (1) Interpretation 99–1 of the Independence public accounting firm or associated signed an initial engagement letter or Standards Board, to the extent not person’s independence obligation with other agreement to perform an audit superseded or amended by the Board. respect to an audit client [that is an pursuant to the standards of the PCAOB, Note: The Board’s Interim issuer] encompasses not only an or (2) began procedures to do so, does Independence Standards do not obligation to satisfy the independence not impair a registered public supersede the Commission’s auditor criteria applicable to the engagement set accounting firm’s independence under independence rules. See Rule 2–01 of out in the rules and standards of the Rule 3523. Reg. S–X, 17 CFR 210.2–01. Therefore, PCAOB, but also an obligation to satisfy to the extent that a provision of the all other independence criteria Rule 3524. Audit Committee Pre- Commission’s rule is more restrictive— applicable to the engagement, including approval of Certain Tax Services or less restrictive—than the Board’s the independence criteria set out in the In connection with seeking audit Interim Independence Standards, a rules and regulations of the Commission committee pre-approval to perform for registered public accounting firm must under the federal securities laws. an issuer audit client any permissible comply with the more restrictive rule. Note 2: Rule 3520 applies only to tax service, a registered public accounting firm shall— Rule 3501. Definitions of Terms those associated persons of a registered Employed in Section 3, Part 5 of the public accounting firm required to be * * * * * Rules independent of the firm’s audit client by standards, rules or regulations of the Rule 3525. Audit Committee Pre- When used in Section 3, Part 5 of the Board or Commission or other approval of Non-audit Services Related Rules, unless the context otherwise applicable independence criteria. to Internal Control Over Financial requires: Reporting Rule 3523. Tax Services for Persons in * * * * * In connection with seeking audit Financial Reporting Oversight Roles committee pre-approval to perform for (a)(v) Audit Committee A registered public accounting firm is an issuer audit client any permissible The term ‘‘audit committee’’ means a not independent of an issuer [its] audit non-audit service related to internal committee (or equivalent body) client if the firm, or any affiliate of the control over financial reporting, a established by and among the board of firm, during the professional registered public accounting firm directors of an entity for the purpose of engagement period provides any tax shall— overseeing the accounting and financial service to a person in a financial * * * * * reporting processes of the entity and reporting oversight role at the issuer audits of the financial statements of the audit client, or an immediate family [Rule 3600T. Interim Independence entity; if no such committee exists with member of such person, unless— Standards.] respect to the entity, the entire board of (a) the person is in a financial [In connection with the preparation or directors of the entity. For audits of non- reporting oversight role at the issuer issuance of any audit report, a registered

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public accounting firm, and its (d) The portions of the Board’s known or reasonably available to the associated persons, shall comply with inspection report that deal with registered public accounting firm. independence standards]— criticisms of or potential defects in * * * * * [(a) as described in the AICPA’s Code quality control systems that the firm has of Professional Conduct Rule 101, and not addressed to the satisfaction of the Rule 5105. Requests for Testimony or interpretations and rulings thereunder, Board shall be made public by the Production of Documents from Persons as in existence on April 16, 2003 Board— Not Associated With Registered Public (AICPA Professional Standards, ET (1) upon the expiration of the 12- Accounting Firms §§ 101 and 191 (AICPA 2002)), to the month period described in paragraph (a) (a) Testimony extent not superseded or amended by of this rule if the firm fails to make any the Board; and] submission pursuant to paragraph (a); or The Board, and the staff of the Board [(b) Standards Nos. 1, 2, and 3, and (2) upon the expiration of the period designated in an order of formal Interpretations 99–1, 00–1, and 00–2, of in which the firm may seek Commission investigation, may issue an accounting the Independence Standards Board, to review of any board determination made board request for the testimony of any the extent not superseded or amended under paragraph (c) of this rule, if the person, including any client of a by the Board.] firm does not seek Commission review registered public accounting firm, that [Note: The Board’s Interim of the Board determination; or the Board considers relevant or material Independence Standards do not (3) in the event the firm requests to an investigation. supersede the Commission’s auditor Commission review of the (1) Requests for Testimony independence rules. See, e.g., Rule 2–01 determination, upon completion of the of Reg. S–X, 17 CFR 240.2–01. Commission’s processes related to that An accounting board request for Therefore, to the extent that a provision request unless otherwise directed by the testimony pursuant to subparagraph (a) of the Commission’s rule is more Commission [unless otherwise directed of this Rule shall— restrictive—or less restrictive—than the by Commission order or rule, 30 days * * * * * Board’s Interim Independence after the firm formally requests Standards, a registered public Commission review pursuant to Section (iii) if the person to be examined is an accounting firm must comply with the 104(h)(1)(B) of the Act]. issuer, broker, dealer, partnership, [an] more restrictive rule.] association, [a] governmental agency, or [Note: The Board intends that, during Rule 4020T. Interim Inspection Program other organized entity, provide a the period preceding the mandatory Related to Audits of Brokers and Dealers description with reasonable registration date, the Interim * * * * * particularity of the matters on which Independence Standards apply to public examination is requested. accounting firms that would be required (b) Definitions (2) Conduct of Examination and to be registered after the mandatory When used in this rule, the term registration date and to associated ‘‘interim program,’’ means the interim Transcript persons of those firms, as if those firms program of inspection described in An examination requested pursuant to were registered public accounting paragraph (c). [When used in this rule, this Rule shall be conducted consistent firms.] Rule 3502, Section 5 of the Rules of the with Rules 5102(c) and a transcript shall Part 7—Establishment of Professional Board, or the definition of ‘‘disciplinary be prepared consistent with Rule Standards proceeding’’ in Rule 1001(d)(i), the 5102(d). If the person to be examined is terms ‘‘audit,’’ ‘‘audit report,’’ and an issuer, broker, dealer, [or a] Rule 3700. Advisory Groups ‘‘professional standards’’ have the partnership, [or] association, or * * * * * meaning provided in Section 110 of the governmental agency, the person to be Act.] examined shall designate one or more (c) Selection of Members of Advisory * * * * * individuals who consent to testify on its Groups. SECTION 5. INVESTIGATIONS AND behalf and [may] shall set forth, for each Members of advisory groups will be ADJUDICATIONS individual designated, the matters on selected by the Board, in its sole which the individual will testify. The discretion, based upon nominations, Part 1—Inquiries and Investigations individuals so designated shall testify as including self-nominations, received Rule 5102. Testimony of Registered to matters known or reasonably from any person or organization. Public Accounting Firms and available to the organization. Note: The Board will announce, from Associated Persons in Investigations time to time, periods during which it (b) Documents * * * * * will receive nominations to an advisory The Board, and the staff of the Board group. During those periods, (c) Conduct of Examination designated in an order of formal nominations may be submitted by any * * * * * investigation, may issue an accounting person or organization, including, but board request to any person, including not limited to, any investor, any (4) Examinations of Registered Public any issuer, broker, or dealer for the accounting firm, any issuer, broker, Accounting Firms production of any document that is dealer, and any institution of higher relevant or material to an investigation, learning. A registered public accounting firm subject to an accounting board demand with appropriate notice, subject to the * * * * * shall designate one or more individuals needs of the investigation. A request SECTION 4. INSPECTIONS who consent to testify on its behalf, and issued pursuant to this Rule shall set shall [may] set forth, for each individual forth a reasonable time and place for Rule 4009. Firm Response to Quality designated, the matters on which the production, subject to the needs of the Control Defects individual will testify. The individuals investigation. * * * * * so designated shall testify as to matters * * * * *

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Rule 5108. Confidentiality of (b) Special and Expedited Procedures violation of the Act, or of any [of] such Investigatory Records rules, laws, or standards; Disciplinary proceedings instituted * * * * * (a) Informal inquiries and formal solely pursuant to Rule 5200(a)(3) for investigations, and any documents, noncooperation with an investigation Rule 5201. Notification of testimony or other information prepared shall be subject to special and expedited Commencement of Disciplinary or received by or specifically for the procedures as described in Rules Proceedings Board or the staff of the Board in 5201(b)(3), 5300(b), 5302(d), 5421(b), * * * * * connection with such inquiries and 5422(a)(2), 5422(d), 5445(b), and investigations, shall be confidential in 5460(a)(2)(ii). (b) Content of Order Instituting the hands of the Board, unless and until Proceedings presented in connection with a public Rule 5112. Coordination and Referral of proceeding or released in accordance Investigations An order instituting proceedings issued pursuant to subparagraph (a) with Section 105(c) of the Act, and the * * * * * Board’s Rules thereunder; provided, shall include a short and plain (b) Board Referrals of Investigations however, that the Board may make such statement of the matters of fact and law information available— to be considered and determined with The Board may refer any respect to each person charged, (1) to the Commission; and investigation: including— (2) in the discretion of the Board, (1) to the Commission; [and,] * * * * * when determined by the Board to be (2) to a self-regulatory organization, in necessary to accomplish the purposes of (3) in the case of a proceeding the case of an investigation that instituted solely pursuant to Rule the Act or to protect investors, to the concerns an audit report for a broker or following— 5200(a)(3), [(i)] the conduct alleged to dealer that is under the jurisdiction of constitute the failure to cooperate with (a) the Attorney General of the United such self-regulatory organization; and an investigation[; and (ii) a hearing States; (3) in the case of an investigation that date]. (b) the appropriate Federal functional concerns an audit report for an * * * * * regulator (as defined in section 509 of institution that is subject to the the Gramm-Leach-Bliley Act), other jurisdiction of any other Federal Rule 5204. Determinations in than the Commission, and the Director functional regulator (as defined in Disciplinary Proceedings of the Federal Housing Finance Agency, section 509 of the Gramm-Leach-Bliley (a) Burden of Proof with respect to an audit report for an Act) or the Director of the Federal institution subject to the jurisdiction of Housing Finance Agency, to such In any disciplinary proceeding such regulator; regulator. instituted pursuant to Rule 5200(a)(1), (c) State attorneys general in Rule 5200(a)(2), or Rule 5200(a)(3), the * * * * * connection with any criminal interested division shall bear the burden investigation; [and] Part 2—Disciplinary Proceedings of proving an alleged violation or failure to supervise by a preponderance of the (d) any appropriate State regulatory Rule 5200. Commencement of evidence. A respondent raising an authority; Disciplinary Proceedings (e) a self-regulatory organization, with affirmative defense shall bear the respect to an audit report for a broker (a) Grounds for Commencement of burden of proving that affirmative or dealer that is under the jurisdiction Disciplinary Proceedings defense by a preponderance of the evidence. of such self-regulatory organization; and The Board may commence a (f) any foreign auditor oversight disciplinary proceeding when— (b) Initial Decision of a Hearing Officer authority, concerning a public * * * * * * * * * * accounting firm with respect to which it has been empowered by a foreign (2) it appears to the Board, as the Note: Unless the Board has directed government to inspect or otherwise result of an investigation or otherwise, otherwise, the Board expects hearing enforce laws, if: that a hearing is warranted to determine officers in proceedings instituted pursuant to Rule 5200(a)(1) or Rule (i) the foreign auditor oversight whether a registered public accounting 5200(a)(2) to prepare initial decisions authority provides: firm, or any person who is, or at the time of the alleged failure reasonably to within 60 days after the deadline for (A) such assurances of confidentiality supervise was, a supervisory person of filing post-hearing briefs or other as the Board may request; such firm, [the supervisory personnel of submissions; the Board expects hearing (B) a description of the applicable such a firm,] has failed reasonably to officers in proceedings instituted solely information systems and controls of the supervise an associated person, either as pursuant to Rule 5200(a)(3) to prepare foreign auditor oversight authority; and required by the Rules of the Board initial decisions within 30 days after the (C) a description of the laws and relating to auditing or quality control deadline for filing post-hearing briefs; regulations of the foreign government of standards, or otherwise, with a view to and the Board expects hearing officers the foreign auditor oversight authority preventing violations of this Act, the in proceedings pursuant to Rule 5500 to that are relevant to information access; Rules of the Board, the provisions of the prepare initial decisions within 45 days and securities laws relating to the after the deadline for filing post-hearing (ii) the Board determines that it is preparation and issuance of audit briefs or other submissions. appropriate to share such information. reports and the obligations and * * * * * * * * * * liabilities of accountants with respect thereto, including the rules of the Rule 5205. Settlement of Disciplinary Rule 5110. Noncooperation with an Commission under the Act, or Proceedings Without a Determination Investigation professional standards, and that such After Hearing * * * * * associated person has committed[s] a * * * * *

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(c) Consideration of Offers of Settlement and vary depending upon the date the investigation, the motion for the stay * * * * * violation occurs. The maximum penalty shall be granted. amounts are published at 17 CFR § 201 Note: In a hearing on disapproval of (c) Other Stays registration, an offer of settlement will Subpart E. Upon a showing that such a stay is in be considered and handled by the Part 4—Rules of Board Procedure Director of Registration and Inspections the public interest or for the protection General in accordance with Rule 5205[6] as if of investors, the motion for the stay the Director of Registration and Rule 5407. Filing of Papers: Signature shall be favored. Inspections were the Director of Requirement and Effect Rule 5421. Answer to Allegations Enforcement and Investigations. Following the issuance of an order * * * * * Part 3—Disciplinary Sanctions instituting proceedings, [every filing of] a party who represents himself or (b) When to File Rule 5300. Sanctions herself shall sign his or her individual Unless additional time is granted by (a) Sanctions in Proceedings Instituted name and state the date and his or her the hearing officer or the Board, a party Pursuant to Rule 5200(a)(1) or Rule address and telephone number on every filing an answer as provided in 5200(a)(2) filing. Every filing of a[A] party paragraph (a) of this Rule shall do so represented by counsel shall be signed If the Board finds, based on all of the within 20 days after service upon the by at least one counsel of record in his facts and circumstances, that a party of an order instituting proceedings or her name and shall state that registered public accounting firm or pursuant to Rule 5200(a)(1), Rule counsel’s business address and associated person thereof has engaged in 5200(a)(2), or Rule 5500, and within 5 telephone number. any act or practice, or omitted to act, in days after service upon the party of an violation of the Act, the Rules of the * * * * * order instituting proceedings solely Board, the provisions of the securities Prehearing Rules pursuant to Rule 5200(a)(3). If the order laws relating to the preparation and instituting proceedings is amended, the issuance of audit reports and the Rule 5420. Stay Requests Board or the hearing officer may require obligations and liabilities of accountants (a) Leave To Participate To Request a that an amended answer be filed and, if with respect thereto, including the rules Stay such an answer is required, shall specify a date for the filing thereof. of the Commission issued under the The Board or the hearing officer may * * * * * Act, or professional standards, the grant leave to participate on a limited Board may impose such disciplinary or basis only to an authorized Rule 5422. Availability of Documents for remedial sanctions as it determines representative of the Commission, an Inspection and Copying appropriate, subject to the applicable authorized representative of the United (a) Documents to be Available for limitations under Section 105(c)(5) of States Department of Justice, an Inspection and Copying the Act, including— authorized representative of a United * * * * * States Attorney, an appropriate state * * * * * (4) a civil money penalty for each regulatory authority, an appropriate such violation, in an amount not to (2) Proceedings Commenced Solely self-regulatory organization, or an Pursuant to Rule 5200(a)(3) exceed the maximum amount authorized representative of any authorized by Sections 105(c)(4)(D)(i) criminal prosecutorial authority of any * * * * * and 105(c)(4)(D)(ii) of the Act, including State or any other political subdivision (b) Documents That May Be Withheld penalty inflation adjustments published of a State for the purpose of requesting in the Code of Federal Regulations at 17 a stay during the pendency of a (1) The interested division may CFR part 201, subpart E; [equal to—] Commission investigation or decline to make available for inspection [(i) not more than $100,000 for a proceeding, a criminal investigation or and copying— natural person or $2,000,000 for any prosecution, a self-regulatory (i) any document prepared by, a other person; and] organization, or a state regulatory member of the Board or of the Board’s [(ii) in any case to which Section proceeding, arising out of the same or staff, or persons retained by the Board 105(c)(5) of the Act applies, not more similar facts that are at issue in the or Board staff to provide services in than $750,000 for a natural person or pending Board or disciplinary connection with the investigation, $15,000,000 for any other person;] proceeding. Motions for leave to disciplinary proceeding, or hearing on * * * * * participate shall be in writing, shall set disapproval of registration, provided forth the nature and extent of the that the document [that] has not been (b) Sanctions in Proceedings Instituted disclosed to any person other than Pursuant to Rule 5200(a)(3) movant’s interest in the proceeding, and, except where good cause for late Board members, Board staff, or persons * * * * * filing is shown, shall be filed not later retained by the Board or Board staff as Note 1: Rule 5300 does not preclude than 20 days prior to the date fixed for described above [to provide services in the imposition of any sanction, on the commencement of the hearing. A connection with the investigation, consent, in the context of a settlement, stay granted pursuant to this Rule may disciplinary proceeding, or hearing on notwithstanding that the sanction is not be granted for such a period and upon disapproval of registration]; listed in the Rule. such conditions as the Board or the (ii) any document accessed from Note 2: The maximum penalty hearing officer deems appropriate. generally available public sources, such amounts authorized by the Act are as legal research or other subscription periodically adjusted for inflation by the (b) Stay to Protect Ongoing Commission databases, databases of securities Commission, pursuant to the Federal Investigation filings, databases of periodicals, and Civil Penalties Inflation Adjustment Act Upon a showing that a stay requested public Web sites, except to the extent of 1990, as amended by the Debt pursuant to this Rule is necessary to that the interested division intends to Collection Improvement Act of 1996, protect an ongoing Commission introduce such documents as evidence;

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(iii) any other document that is (B) the document contains material, (b) For Respondent privileged, including any other exculpatory evidence, provided, A respondent party may at any time document protected by the attorney however, that to the extent such make a motion for summary disposition work product doctrine; evidence can be disclosed without of any or all allegations of the order (iv[ii]) any document that would disclosing the identity of a confidential instituting proceedings [the proceeding] disclose the identity of a confidential source, such identity shall not be with respect to that respondent. source; and disclosed. ([i]v) any other document that the (ii) with respect to any document (c) Pre-motion Conference Required staff identifies for the hearing officer’s withheld pursuant to paragraph A party seeking summary disposition consideration as to whether the (b)(1)([i]v)— shall request and attend a pre-motion document may be withheld as not (A) the document is relevant to the conference with the hearing officer relevant to the subject matter of the subject matter of the proceeding and no before filing its motion for summary proceeding or otherwise for good cause good cause exists for withholding it; or disposition. shown. (1) Due-date for Filing * * * * * (B) the document contains material, exculpatory evidence. At the pre-motion conference, the (c) Procedures Concerning Withheld (d) Timing of Inspection and Copying hearing officer will schedule a due-date Documents for the submission of the motion for (1) The interested division shall, at Unless otherwise ordered by the summary disposition and may, but is the time it makes documents available Board or the hearing officer, the not required to, schedule a due-date for to a respondent under this rule, provide interested division shall make the submission of a response to the the respondent with a log of documents documents available for inspection and motion for summary disposition withheld pursuant to paragraph copying to any respondent who is not in [judgment]. default under Rule 5409 no later than 14 (b)(1)(iii) of this Rule. The log shall (2) Review and Decide Procedure provide the same information that a days after the institution of proceedings person would be required to supply to pursuant to Rule 5200(a)(1), Rule If the hearing officer has not the Board under Rule 5106 in 5200(a)(2), or Rule 5500, and no later scheduled a due-date for a response to connection with a privilege assertion. than 7 days after proceedings have been the motion for summary disposition On a motion by any respondent, a instituted solely pursuant to Rule [judgment], upon review of the motion hearing officer may, in his or her 5200(a)(3). the hearing officer may decide to deny discretion, require the interested * * * * * the motion or to require a response to division to submit any document listed the motion. A hearing officer shall not Rule 5426. Prior Sworn Statements of on the log for inspection by the hearing grant a motion for summary disposition Nonparty Witnesses in Lieu of Live officer in camera. A hearing officer may until after the due-date for filing a Testimony order that any such document be made response to the motion has passed. available to a respondent for inspection At a hearing, any person wishing to * * * * * and copying only if the hearing officer introduce a prior, sworn statement of a Rule 5442. Evidence: Objections and determines that the document is not a nonparty witness otherwise admissible Offers of Proof document described in paragraph in the proceeding, in lieu of live (b)(1)(iii). testimony may make a motion setting (a) Objections (2) The interested division shall, at forth the reasons therefor. If only part of Objections to the admission or the time it makes documents available a statement is offered in evidence, the exclusion of evidence must be made on to a respondent under this rule, provide hearing officer may require that all the record and shall be in short form, the hearing officer and each respondent relevant portions of the statement be stating the grounds relied upon. with a list of documents withheld introduced. If all of a statement is Exceptions to any ruling thereon by the pursuant to paragraph (b)(1)(iv[ii]) or offered in evidence, the hearing officer hearing officer need not be noted at the (b)(1)([i]v) of this Rule and a brief may require that portions not relevant to time of the ruling. Such exceptions will description of the reason for the proceeding be excluded. A motion be deemed waived on appeal to the withholding each document. The list to introduce a prior sworn statement of Board, however, unless raised— provided to the respondent may be a nonparty witness in lieu of live (1) pursuant to interlocutory review in redacted as necessary to protect testimony may be granted if— accordance with Rule 5461; interests related to the interested * * * * * (2) in a proposed finding or division’s reason for withholding the conclusion filed in a post-hearing brief document. The hearing officer may Rule 5427. Motion for Summary or other submission filed pursuant to require the interested division to submit Disposition Rule 5445; or any such document for inspection by (a) For Interested Division (3) in a petition for Board review of the hearing officer in camera. The an initial decision filed in accordance hearing officer may order that any such After a party has filed an answer and with Rule 5460. document be made available to the documents have been made available to * * * * * respondent for inspection and copying that respondent for inspection and only if the hearing officer determines copying pursuant to Rule 5422, or after Rule 5445. Post-hearing Briefs and that— service of a motion for summary Other Submissions (i) with respect to any document disposition by the respondent, the * * * * * withheld pursuant to paragraph interested division may make a motion (b) In any proceeding instituted solely (b)(1)(iv[ii])— for summary disposition of any or all pursuant to Rule 5200(a)(3), the hearing (A) producing the document would allegations of the order instituting officer may, in his or her discretion, not have the effect of identifying a proceedings [the proceedings] with render an initial decision without confidential source; or respect to that respondent. allowing for post-hearing briefs or other

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submissions, or may allow for such the briefing schedule order may be filed financial statements or providing an briefs or other submissions according to except with leave of the Board. The audit report. For purposes of Rule 7104, an expedited schedule. briefing schedule order shall be the term ‘‘audit report’’ means a issued— document, report, notice, or other Appeals to the Board (1) at the time the Board orders review record (1) prepared following an audit Rule 5460. Board Review of on its own initiative pursuant to Rule performed for purposes of compliance Determinations of Hearing Officers 5460(b), or orders interlocutory review by an issuer, broker, or dealer with the on its own motion pursuant to Rule requirements of the securities laws; and (a) Petition for Review of Initial 5461(a)[0]; or (2) in which a public accounting firm Decision by Hearing Officers (2) within 21 days, or such longer either (i) sets forth the opinion of that Any party to a hearing may obtain time as provided by the Board, after— firm regarding a financial statement, Board review of an initial decision by (i) the last day permitted for filing a report, notice, or other document, filing a petition for review that— petition for review pursuant to Rule procedures, or controls; or (ii) asserts no (1) sets forth specific findings and 5460(a)[204(d)]; such opinion can be expressed.] conclusions of the initial decision as to (ii) certification of a ruling for * * * * * which exception is taken, together with interlocutory review pursuant to Rule the supporting reasons for each 5461(b). Quality Control—Interim Standards exception; and * * * * * SEC Practice Section (SECPS)— (2) is filed— Requirements of Membership (i) in a proceeding instituted pursuant SECTION 7. FUNDING SECPS § 1000.08(m)—Notification of to Rule 5200(a)(1), Rule 5200(a)(2), or Rule 7103. Assessment of Accounting the Commission of Resignations and Rule 5500, within 30 days after service Support Fees. of the initial decision on the petitioner Dismissals from Audit Engagements for or within 10 days after the filing of a * * * * * Commission Registrants petition for review by another party, (c) Petition for Correction (1) When the member firm has been whichever is later; or Any issuer, broker, or dealer who the auditor for an SEC registrant (as (ii) in a proceeding instituted solely defined in Appendix D, SECPS pursuant to Rule 5200(a)(3), within 10 disagrees with the class in which it has been placed, or with the calculation by § 1000.38) that is required to file current days after service of the initial decision reports on Form 8–K and has resigned, on the petitioner. which its share of the accounting support fee was determined, may declined to stand for re-election or been * * * * * petition the Board for a correction of the dismissed, report the fact that the client- (e) Summary Affirmance share of the accounting support fee it auditor relationship has ceased directly was allocated. Any such petition shall in writing to the former SEC client, with The Board may summarily affirm an include an explanation of the nature of a simultaneous copy to the Office of the initial decision based upon the petition the claimed mistake in classification or Chief Accountant of the Securities and for review [and any response thereto], calculation in writing and must be filed Exchange Commission, unless the without further briefing, if it finds that with the Board, on or before the 60th former client reports the change in no issue raised in the petition for review day after the invoice is sent, or within auditors in a timely filed Form 8–K. fn4 warrants further consideration by the such longer period as the Board allows Such report shall be sent to the former Board. for good cause shown. After a review of SEC client and to the Office of the Chief Note: For purposes of Rule 5460(a), such a petition, the Board will Accountant by the end of the fifth with respect to any party that has determine whether the allocation is business day following the member entered an appearance and provided an consistent with Section 109 of the Act firm’s determination that the client- electronic mail address as required by and the Board’s rules thereunder and auditor relationship has ended, if the Rule 5401, service of the initial decision provide the issuer, broker, or dealer a issuer has not reported the change in is deemed to occur on the date the written explanation of its decision. The auditors to the SEC in a timely filed Secretary transmits the initial decision provisions of Rule 7104 shall be Form 8–K. to that electronic mail address. suspended while such a petition is (2) When the member firm has been Rule 5462. Briefs Filed with the Board pending before the Board. the auditor for an SEC registrant (as * * * * * defined in Appendix D, SECPS (a) Briefing Schedule Order § 1000.38) that is not required to file Upon a timely and valid petition for Rule 7104. Collection of Accounting current reports on Form 8–K and has review, or upon its own timely motion Support Fees. resigned, declined to stand for re- to review an initial decision, other than * * * * * election or been dismissed, report the review ordered pursuant to Rule 5469, fact that the client-auditor relationship the Board shall issue a briefing schedule (b) Determination of Payment of has ceased directly in writing to the order directing the parties to file Accounting Support Fees by Registered former SEC client, with a simultaneous opening briefs and specifying particular Accounting Firm copy to the Office of the Chief issues, if any, as to which briefing * * * * * Accountant of the Securities and should be limited or directed. Unless [Note 3: For purposes of Rule 7104, Exchange Commission.fn5 Such report otherwise provided, opening briefs shall the term ‘‘audit’’ means an examination shall be sent to the former SEC client be filed within 40 days of the date of the of the financial statements, reports, and to the Office of the Chief briefing schedule order. Opposition documents, procedures, controls, or Accountant by the end of the fifth briefs shall be filed within 30 days after notices of any issuer, broker, or dealer business day following the member the date opening briefs are due. Reply by an independent public accounting firm’s determination that the client- briefs may be filed within 14 days after firm in accordance with the rules of the auditor relationship has ended, the date opposition briefs are due. No Board or the Commission, for the irrespective of whether or not the briefs in addition to those specified in purpose of expressing an opinion on the registrant has reported the change in

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auditors in a timely filed [Form 8–K] funds), the exact name of each registrant disclosures shall be filed with the Ethics report. and each Commission File Number Officer on May 1, commencing the first Fn4 See Appendix I, SECPS should be set forth in the SECPS [letter] year following the initial disclosure.] § 1000.43, for standard form of such e-mail. (3) Disclosure statements by Board report. * * * * * Members shall be made available to the Fn5 See Appendix I, SECPS § 1000.43, public. for standard form of such report. Ethics Code (4) Disclosure statements by professional staff shall remain .43 APPENDIX I—STANDARD FORM EC2. Definitions confidential. OF LETTER CONFIRMING THE * * * * * CESSATION OF THE CLIENT- * * * * * (e) Honoraria AUDITOR RELATIONSHIP EC7. Gifts, Reimbursements, Honoraria (Date) The term ‘‘honoraria’’ means anything and Other Things of Value Mr. John Doe with more than a nominal value, whether provided in cash or otherwise, * * * * * Chief Financial Officer (b) No Board member or staff shall XYZ Corporation and which is provided in exchange for a speech, panel participation, accept payment for or reimbursement of Anytown, USA official travel-related expenses from any Dear Mr. Doe: publication or lecture. Neither the waiver of conference fees nor organization, except— This is to confirm that the client- (1) for travel that is in direct acceptance of a modest speakers-only auditor relationship between XYZ connection with the employee’s meal constitutes ‘‘honoraria.’’ [Note:] Corporation (Commission File Number participation in an educational forum; Items and meals which are provided to X–XXXX) and Able Baker & Co. has and all conference participants[, including ceased. (2) the educational forum is Sincerely, speakers,] are not [provided ‘‘in principally sponsored by and the travel- Able Baker & Co. exchange for’’ a speech and thus not] related expenses are paid or reimbursed CC: Office of the Chief Accountant, considered to be ‘‘honoraria.’’ by— SECPS Letter File, Securities and (f) Practice (A) a federal, state or local Exchange Commission [email protected] The term ‘‘practice’’ means— governmental body, or an association of [Mail Stop 9–5] (1) knowingly acting as an agent or such bodies, 100 F Street NE., attorney for, or otherwise representing (B) an accredited institution of higher [450 Fifth Street NW.,] any other person in any formal or learning, Washington, D.C. 20549 informal appearance before the Board or (C) an organization exempt from The SEC has indicated that member Commission with respect to Board- taxation under 501(c)(3) of the Internal firms may satisfy the SECPS notification related matters; or Revenue Code, provided such requirements by e-mailing [faxing] a (2) making any oral or written organization is not principally funded copy of the SECPS letter to the SEC- communication on behalf of any other from one or more public accounting Office of the Chief Accountant ([202– person to, and with the intent to firms, [or] issuers, brokers, or dealers, or 942–9656; Attn: SECPS Letter File/Mail influence, the Board or Commission (D) institutions equivalent to those in Stop 9–5] [email protected]). A with respect to Board-related matters. EC 7(b)(2)(A)–(C) outside the United copy of the [fax log] e-mail should be Note: For purposes of this definition, States. retained by the sender as documentation participating in the financial reporting EC8. Disqualification of timely filing [and a back-up copy of process as the officer or director of an (a) If a Board member or professional the letter should be sent by regular mail issuer, broker, or dealer or participating staff becomes, or reasonably should to the SEC]. The SEC strongly in an audit of the financial statements become, aware of facts which would encourages sending the notification of an issuer, broker, or dealer does not, lead a reasonable person to believe that letter by [fax and will accept the date of in and of itself, constitute practice he or she, or his or her spouse, spousal the fax as the notification date] e-mail before the Board or the Commission. equivalent, or dependents, may have a to [email protected]. The SEC staff * * * * * financial or personal interest [or other will accept the date the e-mail is similar relationship] which might affect received as the notification date. If [a EC5. Investments or reasonably create the appearance of fax] e-mail transmission is not available, * * * * * affecting his or her independence or alternatively, by order of preference, the (d) Board members and professional objectivity with respect to the Board’s SECPS notification letter may be sent to staff shall [annually] disclose their function or activities, then he or she the SEC via (1) fax to (202) 772–9252, holdings, and the holdings of their shall, at the earliest possible date— (2) U.S. Postal Service overnight spouses, spousal equivalents, and (1) disclose such circumstances and delivery, ([2]3) commercial overnight dependents, in securities of issuers facts, as set forth in subsection (b); and courier, or ([3]4) certified mail, ‘‘return (including exchange-traded options and (2) recuse himself or herself from receipt requested.’’ futures) to the Ethics Officer. further Board functions or activities The exact name of the registrant[,] (1) [For initial disclosures, statements involving or affecting the financial and the Commission File Number as it shall be filed with the Ethics Officer w] [interest] or personal interest appears on the cover page of the Form Within the first 60 days of [relationship]. 10–K[, and the complete SEC address, as commencement of service with the shown above,] should be used in the e- Board; and [, or 60 days from the * * * * * mail [letter and on the envelop]. If the effective date of this Code, whichever is EC12. Post-Employment Restrictions cessation of the client-auditor later.] relationship affects multiple SEC (2) On an annual basis, on May 1 or (a) Negotiating Prospective Employment registrants (e.g., a parent with publicly- another date that may be prescribed by (1) Board members and professional registered subsidiaries, series of mutual the Ethics Officer. [Subsequent staff may not negotiate prospective

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employment with a public accounting proprietary information or that is Such information will be deemed firm, [or] issuer, broker, or dealer, protected from public disclosure by current for purposes of this form. without first disclosing (pursuant to the applicable laws related to 10. Information submitted as part of procedures in Section EC8(b)) the confidentiality of proprietary, personal, this form, including any exhibit to this identity of the prospective employer or other information. An applicant that form, must be in the English language. and recusing himself or herself from all requests confidential treatment must PART I—Identity of the Applicant Board matters directly affecting that identify the portion of the application prospective employer. that it desires to keep confidential, and Item 1.1 Name of Applicant (2) For purposes of this section, include, as Exhibit 99.1 to the State the legal name of the applicant; ‘‘negotiating prospective employment’’ application for registration, a if different, also state the name or names means participating in an employment representation that, to the applicant’s under which the applicant (or any interview; discussing an offer of knowledge, the information for which predecessor for which the applicant is employment; or accepting an offer of confidential treatment is requested has the successor in interest with respect to employment, even if the precise terms not otherwise been publicly disclosed, the entity’s liabilities) issues audit are still to be developed. Submitting a and a detailed explanation of the reports, or has issued any audit report resume or job application to a group of grounds on which the information is during the five years prior to the date of employers or receiving an unsolicited considered proprietary or a detailed this application. inquiry of interest that is rejected, do explanation of the basis for asserting not alone constitute ‘‘negotiating that the information is protected by law Item 1.2 Applicant Contact prospective employment.’’ from public disclosure and a copy of the Information * * * * * specific provision of law that the State the physical address (and, if applicant claims protects the different, mailing address) of the Amendments to Board Forms information from public disclosure. If applicant’s headquarters office. State the The amended Form 1, Form 1–WD, the Firm fails to include Exhibit 99.1, or telephone number and facsimile number Form 2, Form 3, and Form 4 are set forth includes an Exhibit 99.1 that fails to of the applicant’s headquarters office. If below. comply with Rule 2300(c)(2), the available, state the Web site address of request for confidential treatment may the applicant. FORMS be denied solely on the basis of that Form 1—Application for Registration failure. The Board will normally grant Item 1.3 Primary Contact and confidential treatment requests for Signatories General Instructions information concerning non-public State the name, title, physical 1. The definitions in the Board’s rules disciplinary proceedings. The Board business address (and, if different, apply to this form. Italicized terms in will determine whether or not to grant business mailing address), telephone the instructions to this form are defined other confidential treatment requests on number, fax number, and email address in the Board’s rules. See Rule 1001. a case-by-case basis. See Rule 2300(c). of a partner or authorized officer of the 2. Any public accounting firm 7. If an applicant is prohibited by the applicant who will serve as the applying to the Board for registration law(s) of a non-U.S. jurisdiction from applicant’s primary contact with the pursuant to Section 102 of the Act must submitting to the Board information Board regarding this application. file this form with the Board. See Rule requested by all or a part of an Item to Provide the same information for every 2101. this form, the applicant shall so indicate person whose signature appears in Part 3. In addition to these instructions, by making a notation under the relevant VIII or Part IX of this form, if any of the rules contained in Section 2 of the item number of the form and furnishing, those persons are different from the Board’s rules govern applications for as Exhibit 99.2 to the application for primary contact. registration. Please read these rules and registration, the following information: the instructions carefully before (i) a copy of the relevant portion of the Item 1.4 Applicant’s Form of completing this form. conflicting non-U.S. law, (ii) a legal Organization 4. Unless otherwise directed by the opinion that submitting the information State the applicant’s legal form (e.g., Board, applicants must submit this would cause the applicant to violate the proprietorship, partnership, limited form, and all exhibits to the form, to the conflicting non-U.S. law; and (iii) an liability partnership) and the Board electronically by completing the explanation of the applicant’s efforts to jurisdiction (e.g., the state of the United Web-based version of Form 1. Form 1 is seek consents or waivers to eliminate States or comparable non-U.S. available on the Board’s Web site at: the conflict, if the withheld information jurisdiction) under the law of which the http://www.pcaobus.org/Registration/ could be provided to the Board with a applicant is organized or exists. index.aspx. See Rule 2101. consent or waiver, and a representation 5. This form must be accompanied by that the applicant was unable to obtain Item 1.5 Applicant’s Offices a registration fee in accordance with such consents or waivers to eliminate If the applicant has more than one Section 102(f) of the Act. The amount of the conflict. office, furnish, as Exhibit 1.5, the the required fee is available at http:// 8. Where this form requires disclosure physical address (and, if different, www.pcaobus.org/Registration/ of a sum of money, such amount must mailing address) of each of the index.aspx. An application for be stated in U.S. dollars and rounded to applicant’s offices. registration will not be deemed received the nearest thousand. If such amount by the Board until the registration fee was received or paid in a currency other Item 1.6 Associated Entities of has been paid. See Rule 2102. than U.S. dollars, the amount must be Applicant 6. An applicant may request converted to U.S. dollars. State the name and physical address confidential treatment of any portion of 9. Where this form requires non- (and, if different, mailing address) of all its application for registration that has historical (i.e., current) information, associated entities of the applicant that not otherwise been publicly disclosed applicants may submit the information engage in the practice of public and that either contains information as of a date not earlier than 90 days accounting or preparing or issuing audit reasonably identified by the applicant as prior to submission of the application. reports, or comparable reports prepared

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for clients that are not issuers. Do not calendar year. (Do not include audit preceding or current calendar year, and include any person listed in Item 7.1. reports the applicant expects to prepare that do not expect to prepare or issue an or issue during this calendar year, but audit report dated during the current Item 1.7 Applicant’s Licenses that have not yet been issued. These are calendar year, list the names of all List every license or certification called for in Item 2.3 below.) In addition issuers for which the applicant played, number issued to the applicant to the issuer’s name, include, with or expects to play, a substantial role in authorizing it to engage in the business respect to each issuer— the preparation or furnishing of an audit of auditing or accounting. For each such a. The issuer’s business address (as report dated during the preceding or license or certification number, furnish shown on its most recent filing with the current calendar year. In addition to the the name of the issuing state, agency, Commission), and CIK number. issuer’s name, this list must include, board, or other authority. b. The date of the audit report. with respect to each issuer— c. The total amount of fees billed for Part II—Listing of Applicant’s Public a. The issuer’s business address (as audit services for the issuer’s fiscal year shown on its most recent filing with the Company Audit Clients and Related for which the audit report was issued. Fees Commission), and CIK number. d. The total amount of fees billed for b. The name of the public accounting Item 2.1 Issuers for Which Applicant other accounting services for the issuer’s firm that issued, or is expected to issue, Prepared Audit Reports During the fiscal year for which the audit report the audit report. Preceding Calendar Year was issued. c. The date of the audit report, if it has e. The total amount of fees billed for List the names of all issuers for which been issued. non-audit services for the issuer’s fiscal d. The type of substantial role played the applicant prepared or issued any year for which the audit report was audit report dated during the calendar by the applicant with respect to the issued. audit report. year preceding the calendar year in Note: Only fees billed by the principal which this application is filed. In Note: Applicants that disclosed the auditor (i.e., the public accounting firm name of an issuer in response to any of addition to the issuer’s name, this list that issued the audit report) need be Items 2.1–2.3 need not respond to this must include, with respect to each disclosed in response to this Item. To Item. In responding to the part of this issuer— the extent not previously disclosed or Item that asks about issuers for which a. The issuer’s business address (as known by the applicant, estimated the applicant expects to play a shown on its most recent filing with the amounts may be used in responding to substantial role in the preparation or Commission), and CIK number. this Item. For investment company furnishing of an audit report, an b. The date of the audit report. issuers, the fees disclosed in response to applicant may conclude that it is c. The total amount of fees billed for paragraphs (c)–(e) of this Item should expected to play a substantial role in the audit services for the issuer’s fiscal year include all fees for services rendered to preparation or furnishing of an audit for which the audit report was issued. the issuer, to the issuer’s investment report for an issuer (i) if it has been d. The total amount of fees billed for adviser (not including any sub-adviser engaged to do so, or (ii) if it played a other accounting services for the issuer’s whose role is primarily portfolio substantial role in the preparation and fiscal year for which the audit report management and is subcontracted with furnishing of an audit report during the was issued. or overseen by another investment preceding calendar year, absent an e. The total amount of fees billed for adviser), and to any entity controlling, indication from the issuer or principal non-audit services for the issuer’s fiscal controlled by, or under common control accounting firm that it no longer intends year for which the audit report was with, the adviser that provides ongoing to engage the applicant. issued. services to the issuer. Note: Only fees billed by the principal Part III—Listing of Applicant’s Broker Item 2.3 Issuers for Which Applicant auditor (i.e., the public accounting firm or Dealer Audit Clients and Related Expects to Prepare Audit Reports During that issued the audit report) need be Fees disclosed in response to this Item. To the Current Calendar Year the extent not previously disclosed or List the names of all issuers for which Item 3.1 Brokers and Dealers for known by the applicant, estimated the applicant expects to prepare or issue Which Applicant Prepared Audit amounts may be used in responding to any audit report dated during the Reports During the Preceding Calendar this Item. For investment company calendar year in which this application Year issuers, the fees disclosed in response to is filed. In addition to the issuer’s name, List the names of all brokers and paragraphs (c)–(e) of this Item should include, with respect to each issuer, the dealers for which the applicant include all fees for services rendered to issuer’s business address (as shown on prepared or issued any audit report the issuer, to the issuer’s investment its most recent filing with the dated during the calendar year adviser (not including any sub-adviser Commission), and CIK number. preceding the calendar year in which whose role is primarily portfolio Note: An applicant may presume that this application is filed. In addition to management and is subcontracted with it is expected to prepare or issue an the broker’s or dealer’s name, this list or overseen by another investment audit report for an issuer (i) if it has must include, with respect to each adviser), and to any entity controlling, been engaged to do so, or (ii) if it issued broker or dealer— controlled by, or under common control an audit report during the preceding a. The broker’s or dealer’s business with, the adviser that provides ongoing calendar year for an issuer, absent an address, and the broker’s or dealer’s services to the issuer. indication from the issuer that it no CRD number, and CIK number, if any. longer intends to engage the applicant. b. The date of the audit report. Item 2.2 Issuers for Which Applicant c. The total amount of fees billed for Prepared Audit Reports During the Item 2.4 Issuers for Which Applicant audit services for the broker’s or dealer’s Current Calendar Year Played, or Expects to Play, a Substantial fiscal year for which the audit report List the names of all issuers for which Role in Audit was issued. the applicant prepared or issued any For applicants that did not prepare or d. The total amount of fees billed for audit report dated during the current issue an audit report dated during the other accounting services for the

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broker’s or dealer’s fiscal year for which Note: An applicant may conclude that practices, including procedures used to the audit report was issued. it is expected to prepare or issue an monitor compliance with independence e. The total amount of fees billed for audit report for a broker or dealer (i) if requirements. non-audit services for the broker’s or it has been engaged to do so, or (ii) if Part V—Listing of Certain Proceedings dealer’s fiscal year for which the audit it issued an audit report during the Involving the Applicant report was issued. preceding calendar year for a broker or Note: Only fees billed by the principal dealer, absent an indication from the Item 5.1 Certain Criminal, Civil and auditor (i.e., the public accounting firm broker or dealer that it no longer intends Administrative Proceedings that issued the audit report) need be to engage the applicant. a. Indicate whether or not the disclosed in response to this Item. To Item 3.4 Brokers and Dealers for applicant or any associated person of the extent not previously disclosed or Which Applicant Played, or Expects to the applicant is a defendant or known by the applicant, estimated Play, a Substantial Role in Audit respondent— amounts may be used in responding to 1. in any pending criminal this Item. For applicants that did not prepare or proceeding, or was a defendant in any issue an audit report dated during the Item 3.2 Brokers and Dealers for such proceeding in which a judgment preceding or current calendar year, and was rendered against the applicant or Which Applicant Prepared Audit that do not expect to prepare or issue an Reports During the Current Calendar such person, whether by plea or after audit report dated during the current Year trial, during the previous five years; calendar year, list the names of all 2. in any pending civil or alternative List the names of all brokers or brokers and dealers for which the dispute resolution proceeding initiated dealers for which the applicant applicant played, or expects to play, a by a governmental entity (including a prepared or issued any audit report substantial role in the preparation or non-U.S. jurisdiction) arising out of the dated during the current calendar year. furnishing of an audit report dated applicant’s or such person’s conduct in (Do not include audit reports the during the preceding or current calendar connection with an audit report, or a applicant expects to prepare or issue year. In addition to the broker’s or comparable report prepared for a client during this calendar year, but that have dealer’s name, this list must include, that is not an issuer, broker, or dealer, not yet been issued. These are called for with respect to each broker or dealer— or was a defendant or respondent in any in Item 3.3 below.) In addition to the a. The broker’s or dealer’s business such proceeding in which a judgment or broker’s or dealer’s name, include, with address, and the broker’s or dealer’s award was rendered against the respect to each broker or dealer— CRD number, and CIK number, if any. applicant or such person, whether by a. The broker’s or dealer’s business b. The name of the public accounting consent or otherwise, during the address, and the broker’s or dealer’s firm that issued, or is expected to issue, CRD number, and CIK number, if any. previous five years; the audit report. 3. in any pending administrative or b. The date of the audit report. c. The date of the audit report, if it has c. The total amount of fees billed for disciplinary proceeding arising out of been issued. the applicant’s or such person’s conduct audit services for the broker’s or dealer’s d. The type of substantial role played in connection with an audit report, or a fiscal year for which the audit report by the applicant with respect to the comparable report prepared for a client was issued. audit report. d. The total amount of fees billed for that is not an issuer, broker, or dealer or Note: Applicants that disclosed the other accounting services for the was a respondent in any such name of a broker or dealer in response broker’s or dealer’s fiscal year for which proceeding in which a finding of to any of Items 3.1–3.3 need not respond the audit report was issued. violation was rendered, or a sanction e. The total amount of fees billed for to this Item. In responding to the part of entered, against the applicant or such non-audit services for the broker’s or this Item that asks about brokers and person, whether by consent or dealer’s fiscal year for which the audit dealers for which the applicant expects otherwise, during the previous five report was issued. to play a substantial role in the years. Administrative or disciplinary preparation or furnishing of an audit Note: Only fees billed by the principal proceedings include those of the report, an applicant may conclude that Commission; the Board; any other auditor (i.e., the public accounting firm it is expected to play a substantial role that issued the audit report) need be federal, state, or non-U.S. agency, board, in the preparation or furnishing of an or administrative or licensing authority; disclosed in response to this Item. To audit report for a broker or dealer (i) if the extent not previously disclosed or and any professional association or it has been engaged to do so, or (ii) if body. Investigations that have not known by the applicant, estimated it played a substantial role in the amounts may be used in responding to resulted in the commencement of a preparation and furnishing of an audit proceeding need not be included; this Item. report during the preceding calendar Note: Foreign public accounting firm year, absent an indication from the Item 3.3 Brokers and Dealers for applicants need only disclose such broker or dealer or principal accounting Which Applicant Expects to Prepare proceedings for the applicant and any firm that it no longer intends to engage Audit Reports During the Current proprietor, partner, principal, the applicant. Calendar Year shareholder, officer, or manager of the List the names of all brokers and Part IV—Statement of Applicant’s applicant who provided at least ten dealers for which the applicant expects Quality Control Policies hours of audit services for any issuer, to prepare or issue any audit report broker, or dealer during the last Item 4.1 Applicant’s Quality Control dated during the calendar year in which calendar year. this application is filed. In addition to Policies b. In the event of an affirmative the broker’s or dealer’s name, include, Furnish, as Exhibit 4.1, a narrative, response to Item 5.1.a, furnish the with respect to each broker or dealer, summary description, in a clear, concise following information with respect to the broker’s or dealer’s business and understandable format, of the each such proceeding: address, and the broker’s or dealer’s quality control policies of the applicant 1. The name, filing date, and case or CRD number, and CIK number, if any. for its accounting and auditing docket number of the proceeding.

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2. The name and address of the court, Item 5.2 Pending Private Civil Actions issuer made by such issuer during the tribunal, or body in which such a. Indicate whether or not the current or preceding calendar year in a proceeding was filed. applicant or any associated person of filing with the Commission pursuant to 3. The names of all defendants or the applicant is a defendant or Item 304(a)(1)(iv) of Regulation S–K, 17 respondents in such proceeding who are respondent in any pending civil CFR 229.304(a)(1)(iv). also the applicant, any person listed in proceeding or alternative dispute b. Indicate whether or not the Part VII, or any person associated with resolution proceeding initiated by a applicant has been the former the applicant at the time that the events non-governmental entity involving accountant with respect to any filing in question occurred. conduct in connection with an audit made by an issuer during the current or 4. The name of the issuer, broker, or report, or a comparable report prepared preceding calendar year with the dealer, or other client that was the for a client that is not an issuer, broker, Commission containing a letter subject of the audit report or comparable or dealer. submitted by the applicant to the report. b. In the event of an affirmative Commission pursuant to Item 304(a)(3) 5. With respect to each person named response to Item 5.2.a, furnish the of Regulation S–K, 17 CFR in Item 5.1.b.3, the statutes, rules, or following information with respect to 229.304(a)(3), in which the applicant each such proceeding: other requirements such person was stated that it disagreed with a statement 1. The name, filing date, and case or found to have violated (or, in the case of the issuer in response to Item 304(a). of a pending proceeding, is charged docket number of the proceeding. with having violated). 2. The name and address of the court, Item 6.2 Listing of Disagreements With 6. With respect to each person named tribunal or body in which such Issuers in Item 5.1.b.3, the outcome of the proceeding was filed. proceeding, including any sentence or 3. The names of all defendants or In the event of an affirmative response sanction imposed. (If no judgment or respondents in such proceeding who are to Items 6.1.a or 6.1.b, furnish the award has yet been rendered, enter the also the applicant, any person listed in following information with respect to word ‘‘pending.’’) Part VII, or any person associated with each such filing: the applicant at the time that the events c. Indicate whether or not any a. The name of the issuer. in question occurred. employee, partner, shareholder, 4. The name of the issuer, broker, or b. The name and date of the filing principal, member, or owner of the dealer, or other client that was the containing the disclosure of the applicant, or any person or entity with subject of the audit report or comparable disagreement or the applicant’s letter. which the applicant has a contractual or report. other arrangement to receive consulting 5. With respect to each person named Item 6.3 Copies of Filings or other professional services, is in Item 5.2.b.3, the statutes, rules, or currently subject to a Board disciplinary Furnish, as Exhibit 6.3, a copy of other requirements such person is every filing described in Item 6.2. sanction suspending or barring the alleged to have violated. person from being an associated person Note: Foreign public accounting firm Item 6.4 Existence of Issues With of a registered public accounting firm. applicants need only disclose such Brokers or Dealers d. Indicate whether or not the proceedings for the applicant and any Indicate whether or not the applicant applicant or any employee, partner, proprietor, partner, principal, has been the former accountant with shareholder, principal, member, or shareholder, officer, or manager of the owner of the applicant, or any person or applicant who provided at least ten respect to a notice of any issues relating entity with which the applicant has a hours of audit services for any issuer, to any matter of accounting principles contractual or other arrangement to broker, or dealer during the last or practices, financial statement receive consulting or other professional calendar year. disclosure, auditing scope or procedure, services, is currently subject to a (1) or compliance with applicable rules of Commission order suspending or Item 5.3 Applicant’s Discretionary the Commission made by a broker or denying the privilege of appearing or Statement Regarding Proceedings dealer during the current or preceding practicing before the Commission, or (2) Involving the Applicant’s Audit Practice calendar year in a filing with the court-ordered injunction prohibiting With respect to any case or Commission pursuant to Rule 17a- appearance or practice before the proceeding listed in response to Items 5(f)(3)(v)(B), 17 CFR § 240.17a- Commission. 5.1 or 5.2, the applicant may, at its 5(f)(3)(v)(B). e. In the event of an affirmative discretion, furnish, as Exhibit 5.3, a Item 6.5 Listing of Issues With Brokers response to Item 5.1.c or Item 5.1.d, statement or statements describing the or Dealers furnish the following with respect to proceeding and the reasons that, in the each such person: applicant’s view, such proceeding In the event of an affirmative response 1. The name of the person (including should not be a basis for the denial of to Item 6.4, furnish the following the applicant) subject to the order or its application for registration. information with respect to each such sanction. Part VI—Listing of Filings Disclosing filing: 2. If other than the applicant, a Accounting Disagreements With Public a. The name of the broker or dealer, description of the person’s job title and Company Audit Clients and Issues With and the broker’s or dealer’s CRD duties performed for the applicant. Broker or Dealer Audit Clients number, and CIK number, if any. 3. The date of the relevant order and an indication whether it was a Board Item 6.1 Existence of Disagreements b. The name and date of the filing order, a Commission order, or a court With Issuers containing the notice. order. a. Indicate whether or not the Item 6.6 Copies of Filings 4. If a court order, the name of the applicant has been the former court and the name and case or docket accountant with respect to any Furnish, as Exhibit 6.6, a copy of number of the proceeding. disclosure of a disagreement with an every filing described in Item 6.5.

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Part VII—Roster of Associated compliance, as described in the firm’s statements were made, not misleading, Accountants consent in paragraph (a), and the and that the signer is authorized to securing and enforcement of such execute the application on behalf of the Item 7.1 Listing of Accountants consents from its associated persons in applicant. The signature must be Associated With Applicants accordance with paragraph (b), shall be accompanied by the name of the signer, List the names of all accountants a condition to the continuing the capacity in which the signer signed associated with the applicant who effectiveness of the registration of the the application, and the date of participate in or contribute to the firm with the Public Company signature. preparation of audit reports. For each Accounting Oversight Board. Part X—Exhibits such person, list every license or Note 1: Other than the insertion of the certification number (if any) authorizing name of the applicant in paragraphs (a), To the extent applicable under the him or her to engage in the business of (b), and (c) of this Item, Exhibit 8.1 must foregoing instructions, each application auditing or accounting. For each such be in the exact words contained in this must be accompanied by the following license or certification number, furnish instruction. The consents required by exhibits: the name of the issuing state, agency, paragraph (b) of this Item must be in the Exhibit 1.5 Listing of Offices board, or other authority. exact words of Note 2 below and must Exhibit 4.1 Statement of Quality Control Note: For purposes of this Item, be secured by the applicant not later Policies applicants that are not foreign public than 45 days after submitting this Exhibit 5.3 Discretionary Statements accounting firms must list all application or, for persons who become Regarding Proceedings Involving accountants who are persons associated associated persons of the firm Audit Practice with the applicant and who provided at subsequent to the submission of this Exhibit 6.3 Securities and Exchange least ten hours of audit services for any application, at the time of the person’s Commission Filings Disclosing issuer, broker, or dealer during the last association with the firm. Consents Accounting Disagreements With calendar year. Applicants that are required by paragraph (b) of this Item Public Company Audit Clients foreign public accounting firms must are not required to be furnished as an Exhibit 6.6 Securities and Exchange list all accountants who are a proprietor, exhibit to this form. Commission Filings Disclosing Issues partner, principal, shareholder, officer, Note 2: Other than the insertion of the With Brokers or Dealers or manager of the applicant and who name of the associated person, the Exhibit 8.1 Consent of Applicant for provided at least ten hours of audit consents required by paragraph (b) of Registration services for any issuer, broker, or dealer this Item must state: [Name of Exhibit 99.1 Request for Confidential during the last calendar year. associated person] consents to cooperate Treatment Item 7.2 Number of Firm Personnel in and comply with any request for Exhibit 99.2 Evidence of Conflicting testimony or the production of State the— Non-U.S. Law documents made by the Public a. Total number of accountants Note: Where an exhibit consists of Company Accounting Oversight Board employed by the applicant. more than one document, each b. Total number of certified public in furtherance of its authority and document must be numbered accountants, or accountants with responsibilities under the Sarbanes- consecutively (e.g., Exhibit 4.1.1, comparable licenses from non-U.S. Oxley Act of 2002. [Name of associated Exhibit 4.1.2, Exhibit 4.1.3, etc.), and jurisdictions, employed by the person] understands and agrees that this the applicant must provide a list of the applicant. consent is a condition of their continued title or description of each document c. Total number of personnel employment by or other association comprising the exhibit. with [name of applicant]. employed by the applicant. * * * * * Note 3: For applicants that are foreign Part VIII—Consents of Applicant public accounting firms, the term Form 1–WD Item 8.1 Consent To Cooperate With ‘‘associated persons’’ as used in this Request for Leave To Withdraw From Item means all accountants who are a the Board and Statement of Acceptance Registration of Registration Condition proprietor, partner, principal, shareholder, officer, or manager of the General Instructions Furnish, as Exhibit 8.1, a statement, applicant and who provided at least ten signed on behalf of the applicant by an 1. The definitions in the Board’s rules hours of audit services for any issuer authorized partner or officer of the apply to this form. Italicized terms in broker, or dealer during the last applicant in accordance with Rule 2104, the instructions to this form are defined calendar year. in the following form— in the Board’s rules. See Rule 1001. a. [Name of applicant] consents to Part IX—Signature of Applicant 2. Any registered public accounting cooperate in and comply with any firm seeking to withdraw from Item 9.1 Signature of Partner or request for testimony or the production registration with the Board must file this Authorized Officer of documents made by the Public form with the Board. Company Accounting Oversight Board The application must be signed on 3. In addition to these instructions, in furtherance of its authority and behalf of the applicant by an authorized the Board’s Rule 2107 governs responsibilities under the Sarbanes- partner or officer of the applicant in applications for leave to withdraw from Oxley Act of 2002. accordance with Rule 2104. The signer registration. Please read Rule 2107 and b. [Name of applicant] agrees to must certify that he or she has reviewed the instructions carefully before secure and enforce similar consents the application; that the application is, completing this form. from each of its associated persons as a based on the signer’s knowledge, 4. Unless otherwise directed by the condition of their continued complete and does not contain any Board, a registered public accounting employment by or other association untrue statement of a material fact or firm seeking to withdraw from with the firm. omit to state a material fact necessary to registration must submit this form to the c. [Name of applicant] understands make the statements made, in light of Board electronically by completing the and agrees that cooperation and the circumstances under which such Web-based version of Form 1–WD. The

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date of such submission shall be address in whole or in part (1) conduct execute the application on behalf of the deemed the date of Board receipt of the of the firm or (2) audit-related conduct firm. The signature must be Form. of any of the firm’s associated persons. accompanied by the title of the signer 5. Pursuant to Rule 2107, any Form 1– For each such proceeding, state— and the date of the signature. WD filed with the Board shall be non- a. The identity of the federal, state, or * * * * * public. A registered public accounting local authority conducting the firm may submit with Form 1–WD a proceeding; Form 2—Annual Report Form request for Board notification in the b. The caption or other identifying General Instructions event that the Board is requested by information of the proceeding; 1. Submission of this Report. A subpoena or other legal process to c. The date that the firm or a partner registered public accounting firm must disclose the Form 1–WD. The Board or officer of the firm first became aware use this Form to file with the Board the will make reasonable attempts to honor of the proceeding; annual report required by Section any such request, although the Board d. The firm’s understanding of the 102(d) of the Act and Rule 2200 and to will make public the fact that the firm current status of the proceeding; and file any amendments to an annual has requested to withdraw from e. The conduct of the firm and the report. Unless otherwise directed by the registration. firm’s associated persons that the Board, the Firm must file this Form, and 6. Information submitted as part of proceeding addresses. this form must be in the English all exhibits to this Form, electronically Part III—Certification of language. with the Board through the Board’s Nonparticipation in Audits Web-based system. Part I—Identity of the Registered Public 2. Defined Terms. The definitions in Item 3.1 Statement of Nonparticipation Accounting Firm the Board’s rules apply to this Form. in Audits Italicized terms in the instructions to Item 1.1 Name of the Firm Requesting Furnish a statement, dated and signed this Form are defined in the Board’s Leave to Withdraw on behalf of the firm by an authorized rules. In addition, as used in the State the legal name of the firm partner or officer of the firm, in the instructions to this Form, the term ‘‘the requesting leave to withdraw; if following form— Firm’’ means the registered public different, also state the name or names On behalf of [name of firm], I certify accounting firm that is filing this Form under which the firm (or any that [name of firm] is not currently, and with the Board. predecessor) issues audit reports, or has will not during the pendency of its 3. When Report is Considered Filed. issued any audit report during the request for leave to withdraw be, Annual reports on this Form are period of the firm’s registration with the engaged in the preparation or issuance required to be filed each year on or Board. of, or playing a substantial role in the before June 30, subject to the Item 1.2 Firm Contact Information preparation or furnishing of, an audit qualification in Rule 2201 concerning report, other than to issue a consent to any firm that has its application for State the physical address (and, if the use of an audit report for a prior registration approved by the Board in different, mailing address) of the firm’s period. the period between and including April headquarters office. State the telephone Note: Other than the insertion of the 1 and June 30. An annual report is number and facsimile number of the name of the firm the statement must be considered filed when the Firm has firm’s headquarters office. in the exact words contained in this submitted to the Board a Form 2 in Item 1.3 Primary Contact and instruction. accordance with Rule 2200 that Signatories includes the signed certification Part IV—Reasons for Seeking Leave To required in Part X of Form 2. State the name, title, physical Withdraw (Optional) 4. Period Covered by this Report. business address (and, if different, Annual reports on this Form shall cover business mailing address), telephone Item 4.1 Description of Reasons for Seeking Leave To Withdraw a 12-month period from April 1 to number, facsimile number, and email March 31, subject to the qualification in address of a partner or authorized Describe, if you choose to do so, the Part VIII of Form 2 relating to the first officer of the firm who will serve as the reason or reasons that the firm seeks annual report filed by a firm that firm’s primary contact with the Board leave to withdraw from registration. becomes registered after December 31, regarding this application. Provide the Part V—Signature of Firm Seeking 2009. In the instructions to this Form, same information for every person Leave To Withdraw this is the period referred to as the whose signature appears in Part III or ‘‘reporting period.’’ Part V of the form, if any of those Item 5.1 Signature of Authorized 5. Amendments to this Report. persons are different from the primary Partner or Officer Amendments shall not be filed to contact. The request for leave to withdraw update information in a filed Form 2 Part II—Description of Ongoing from registration must be signed on that was correct at the time the Form Regulatory or Law Enforcement behalf of the firm by an authorized was filed, but only to correct Proceedings partner or officer of the firm. The signer information that was incorrect at the must certify that he or she has reviewed time the Form was filed or to provide Item 2.1 Description of Ongoing the application; that the application is, information that was omitted from the Regulatory or Law Enforcement based on the signer’s knowledge, Form and was required to be provided Proceedings complete and does not contain any at the time the Form was filed. When Identify all ongoing federal, state, or untrue statement of a material fact or filing a Form 2 to amend an earlier filed local investigative, disciplinary, omit to state a material fact necessary to Form 2, the Firm must supply not only regulatory, criminal, or other law make the statement made, in light of the the corrected or supplemental enforcement proceedings that are circumstances under which such information, but must include in the known to the firm, including to any of statements were made, not misleading, amended Form 2 all information, the firm’s partners or officers, and that and that the signer is authorized to affirmations, and certifications that were

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required to be included in the original 8. Assertions of Conflicts with Non- Item 1.3 Primary Contact With the Form 2. The Firm may access the U.S. Law. If the Firm is a foreign Board originally filed Form 2 through the registered public accounting firm, the State the name, business title, Board’s Web-based system and make the Firm may, unless otherwise directed by physical business address (and, if appropriate amendments without the Board pursuant to Rule 2207(e), different, business mailing address), needing to re-enter all other decline to provide certain information business telephone number, business information. and affirmations required by this Form facsimile number, and business email if the Firm could not provide such Note: The Board will designate an address of a partner or authorized information or affirmations without amendment to an annual report as a officer of the Firm who will serve as the violating non-U.S. law and the Firm report on ‘‘Form 2/A.’’ Firm’s primary contact with the Board, proceeds in accordance with Rule 2207. including for purposes of the annual 6. Rules Governing this Report. In The Firm may withhold responsive report filed on this Form and any addition to these instructions, the rules information and affirmations on that special reports filed on Form 3. contained in Part 2 of Section 2 of the basis from any Part of the Form other Board’s rules govern this Form. Please than Parts I, II, and X and Items 3.1.a, Part II—General Information read these rules and the instructions 3.1.b, 3.1.d, and 4.1. If the firm Concerning This Report carefully before completing this Form. withholds responsive information or Item 2.1 Reporting Period affirmations, the Firm must indicate, in 7. Requests for Confidential State the reporting period covered by accordance with the instructions in the Treatment. The Firm may, by marking this report. relevant Part of the Form, the particular the Form in accordance with the Note: The reporting period, which the instructions provided, request Items with respect to which the Firm has withheld responsive information or Firm should enter in Item 2.1, is the confidential treatment of any period beginning on April 1 of the year information submitted in Part VI, Part a required affirmation. The Firm may not use the Form to make any general before the year in which the annual VII, or Exhibit 99.3 of this Form that has report is required to be filed and ending assertion that a particular requirement not otherwise been publicly disclosed March 31 of the year in which the may conflict with non-U.S. law, but and that either contains information annual report is required to be filed. only to indicate that, on the basis of an reasonably identified by the Firm as That is the period referred to where this asserted conflict, the Firm has in fact proprietary information or that is Form refers to the ‘‘reporting period.’’ withheld from this Form required protected from public disclosure by Note, however, the special instruction at information or a required affirmation. applicable laws related to the beginning of Part VIII concerning the confidentiality of proprietary, personal, 9. Language. Information submitted as first annual report filed by certain firms. or other information. See Rule 2300. part of this Form, including any exhibit Foreign registered public accounting to this Form, must be in the English Item 2.2 Amendments firms may also request confidential language. If this is an amendment to a report treatment for Item 3.2 and Exhibit 3.2, Part I—Identity of the Firm and Contact previously filed with the Board— though U.S. firms may not do so. If the a. Indicate, by checking the box Persons Firm requests confidential treatment, it corresponding to this item, that this is must identify the information in Part VI, In Part I, the Firm should provide an amendment. Part VII, or Exhibit 99.3 (or, for a foreign information that is current as of the date b. Identify the specific Item numbers registered public accounting firm, Item of the certification in Part X. of this Form (other than this Item 2.2) 3.2 and Exhibit 3.2) that it desires to as to which the Firm’s response has keep confidential, and include, as Item 1.1 Name of the Firm changed from that provided in the most Exhibit 99.1 to this Form, a a. State the legal name of the Firm. recent Form 2 or amended Form 2 filed representation that, to the Firm’s by the Firm with respect to the reporting b. If different than its legal name, state knowledge, the information for which period. the name or names under which the confidential treatment is requested has Firm issues audit reports, or issued any Part III—General Information not otherwise been publicly disclosed, audit report during the reporting period. Concerning the Firm and a detailed explanation of the grounds on which the information is c. If the Firm’s legal name at the Item 3.1 The Firm’s Practice Related to considered proprietary or a detailed beginning of the reporting period was the Registration Requirement explanation of the basis for asserting different than the name provided under Item 1.1.a, state that legal name and any a. Indicate whether the Firm issued that the information is protected by law any audit report with respect to an from public disclosure and a copy of the other legal name the Firm had during the reporting period. Include the legal issuer during the reporting period. specific provision of law that the Firm b. In the event of an affirmative name of any registered public claims protects the information from response to Item 3.1.a, indicate whether accounting firm that merged into, or was public disclosure. If the Firm fails to the issuers with respect to which the acquired by, the Firm during the include Exhibit 99.1, or includes an Firm issued audit reports during the reporting period. Exhibit 99.1 that fails to comply with reporting period were limited to Rule 2300(c)(2), the request for Item 1.2 Contact Information of the employee benefit plans that file reports confidential treatment may be denied Firm with the Commission on Form 11–K. solely on the basis of the failure. The c. In the event of a negative response Board will normally grant confidential a. State the physical address (and, if to Item 3.1.a, indicate whether the Firm treatment requests for information different, mailing address) of the Firm’s played a substantial role in the concerning non-public disciplinary headquarters office. preparation or furnishing of an audit proceedings. The Board will determine b. State the telephone number and report with respect to an issuer during whether or not to grant other facsimile number of the Firm’s the reporting period. confidential treatment requests on a headquarters office. If available, state d. Indicate whether the Firm issued case-by-case basis. See Rule 2300(c). the Web site address of the Firm. any audit report with respect to any

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broker or dealer during the reporting Item 9(e) of Commission Schedule 14A checking the box corresponding to the period. (17 CFR 240.14a–101) under the appropriate range set out below, the e. In the event of a negative response headings ‘‘Audit Fees,’’ ‘‘Audit-Related total number of Firm personnel who to Item 3.1.d, indicate whether the Firm Fees,’’ ‘‘Tax Fees,’’ and ‘‘All Other Fees’’ exercised the authority to sign the played a substantial role in the with, respectively, the Board’s Firm’s name to an audit report, for an preparation or furnishing of an audit definitions of Audit Services, Other issuer, during the reporting period. If report with respect to a broker or dealer Accounting Services, Tax Services, and the Firm checks the box indicating that during the reporting period. Non-Audit Services. the number is in the range of 1–9, provide the exact number. Item 3.2 Fees Billed to Issuer Audit Item 3.3 Foreign Registered Public Clients Accounting Firm’s Designation of U.S. 1–9 Agent 10–25 a. Of the total fees billed by the Firm 26–50 to all clients for services that were a. If the Firm is a foreign registered 51–100 rendered in the reporting period, state public accounting firm that has 101–200 the percentage (which may be rounded, designated to the Commission or Board More than 200 but no less specifically than to the an agent in the United States upon Note: In responding to Item 4.1(a), nearest five percent) attributable to fees whom the Commission or the Board careful attention should be paid to the billed to issuer audit clients for— may serve any request to the Firm under definition of issuer. The Firm should 1. Audit services; Section 106 of the Act or any process, not, for example, overlook the fact that 2. Other accounting services; pleading, or other papers in any action 3. Tax services; and investment companies may be issuers, against the Firm to enforce Section 106 or that employee benefit plans that file 4. Non-audit services. of the Act, check here and enter the b. Indicate, by checking the reports on Commission Form 11–K are name and address of the designated appropriate box, which of the following issuers. agent. Note: In responding to Item 4.1, do two methods the Firm used to calculate b. If the Firm is a foreign registered not list any issuer more than once. For the percentages reported in Item 3.2.a— public accounting firm and did not 1. The Firm used as a denominator each issuer provide in Item 4.1.a.3 the check the box for Item 3.3.a, indicate by the total fees billed to all clients for audit report dates (as described in AU checking ‘‘yes’’ or ‘‘no’’ whether the services rendered during the reporting 530, Dating of the Independent Firm has, since July 21, 2010, (1) period and used as numerators (for each Auditor’s Report) of all such audit performed material services upon which of the four categories) total fees billed to reports for that issuer including each another registered public accounting issuer audit clients for the relevant date of any dual-dated audit report. firm relied in the conduct of an audit or services rendered during the reporting interim review, (2) issued an audit Note: In responding to Item 4.1.a.3, it period. report, (3) performed audit work, or (4) is not necessary to provide the date of 2. The Firm used as a denominator any consent to an issuer’s use of an the total fees billed to all clients in the performed interim reviews. Note: If the Firm checks ‘‘yes’’ for audit report previously issued for that Firm’s fiscal year that ended during the issuer, except that, if such consents reporting period and used as numerators Item 3.3.b, the Firm must immediately provide to the Commission or the Board constitute the only instances of the Firm (for each of the four categories) total issuing audit reports for a particular issuer audit client fees as determined by the designation required by Section 106(d)(2) of the Act. issuer during the reporting period, the reference to the fee amounts disclosed Firm should include that issuer in Item to the Commission by those clients for Note: If the Firm checks ‘‘no’’ for Item 4.1 and include the dates of such each client’s fiscal year that ended 3.3.b, and the Firm later performs any consents and indicate whether the dates during the reporting period (including, of the activities identified in Section provided correspond to the issuance of for clients who have not made the 106(d)(2) of the Act, the Firm must a consent to the use of a previously- required Commission filings, the fee immediately provide to the Commission issued audit report in Item 4.1.a.3. amounts required to be disclosed). or the Board the designation required by c. If the Firm has used a reasonable Section 106(d)(2) of the Act. Item 4.2 Issuer Audit Reports With method to estimate the components of Note: If the Firm has previously Respect to Which the Firm Played a the calculations described in Item 3.2.b, designated an agent for service to the Substantial Role During the Reporting rather than using the specific data, Commission or Board, the Firm must Period check this box and attach Exhibit 3.2 immediately communicate any change a. If no issuers are identified in briefly describing the reasons for doing in the name or address of the agent to response to Item 4.1.a, but the Firm so and the methodology used in making the Commission or Board. played a substantial role in the those estimates. Part IV—Audit Clients and Audit preparation or furnishing of an audit Note: In responding to Item 3.2, Reports report for an issuer that was issued careful attention should be paid to the during the reporting period, provide the definitions of the italicized terms, Item 4.1 Audit Reports Issued by the following information concerning each which are found in Board Rules Firm for Issuers issuer with respect to which the Firm 1001(i)(iii) (issuer), 1001(a)(v) (audit), a. Provide the following information did so— 1001(a)(vii) (audit services), 1001(o)(i) concerning each issuer for which the 1. The issuer’s name; (other accounting services), 1001(t)(i) Firm issued any audit report(s) during 2. The issuer’s CIK number, if any; (tax services), and 1001(n)(ii) (non-audit the reporting period— 3. The name of the registered public services). The definitions of the four 1. The issuer’s name; accounting firm that issued the audit categories of services correspond to the 2. The issuer’s CIK number, if any; report(s); Commission’s descriptions of the and 4. The end date(s) of the fiscal services for which an issuer must 3. The date(s) of the audit report(s). period(s) covered by the financial disclose fees paid to its auditor. b. If the Firm identified any issuers in statements that were the subject of the Compare the descriptions of services in response to Item 4.1.a., indicate, by audit report(s); and

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5. A description of the substantial role Note: If the Firm identifies any broker the Firm with comparable licenses from played by the Firm with respect to the or dealer in response to Item 4.3, the non-U.S. jurisdictions); and audit report(s). Firm need not respond to Item 4.4. Total number of the Firm’s personnel. Note: If the Firm identifies any issuer Note: In responding to Item 4.4, do Part VII—Certain Relationships in response to Item 4.1, the Firm need not list any broker or dealer more than not respond to Item 4.2. once. Item 7.1 Individuals With Certain Note: In responding to Item 4.2, do Disciplinary or Other Histories Part V—Offices and Affiliations not list any issuer more than once. a. Other than a relationship required In Part V, the Firm should provide to be reported in Item 5.1 of Form 3, and Item 4.3 Audit Reports Issued by the information that is current as of the last Firm for Brokers or Dealers only if the Firm has not previously day of the reporting period. identified the individual and the a. Provide the following information Item 5.1 Firm’s Offices sanction or Commission order on Form concerning each audit report issued for 1, Form 2, or Form 3, state whether, as a broker or dealer during the reporting List the physical address and, if of the end of the reporting period, the period— different, the mailing address, of each of Firm has any employee, partner, 1. The broker’s or dealer’s name; the Firm’s offices. shareholder, principal, member, or 2. The broker’s or dealer’s CRD Item 5.2 Audit-Related Memberships, owner who was the subject of a Board number, and CIK number, if any; and disciplinary sanction or a Commission 3. The date of the audit report(s). Affiliations, or Similar Arrangements b. If the Firm identified any brokers order under Rule 102(e) of the a. State whether the Firm has any: Commission’s Rules of Practice, entered or dealers in response to Item 4.3.a., 1. Membership or affiliation in or indicate, by checking the box within the five years preceding the end with any network, arrangement, of the reporting period and without that corresponding to the appropriate range alliance, partnership or association that set out below, the total number of Firm sanction or order having been vacated licenses or authorizes audit procedures on review or appeal, and who provided personnel who exercised the authority or manuals or related materials, or the to sign the Firm’s name to an audit at least ten hours of audit services for use of a name in connection with the any issuer, broker, or dealer during the report, for a broker or dealer, during the provision of audit services or reporting period. If the Firm checks the reporting period. accounting services; b. If the Firm provides an affirmative box indicating that the number is in the 2. Membership or affiliation in or response to Item 7.1.a, provide— range of 1–9, provide the exact number. with any network, arrangement, 1. The name of each such individual; 1–9 alliance, partnership or association that 2. A description of the nature of the 10–25 markets or sells audit services or relationship; 26–50 through which joint audits are 51–100 3. The date that the Firm entered into conducted; or the relationship; and 101–200 3. Arrangement, whether by contract More than 200 4. The date of the relevant order and or otherwise, with another entity Note: For each audit report provide in an indication whether it was a Board through or from which the Firm order or a Commission order. Item 4.3.a.3 the audit report dates (as employs or leases personnel to perform described in AU 530, Dating of the audit services. Item 7.2 Entities With Certain Independent Auditor’s Report) b. If the Firm provides an affirmative Disciplinary or Other Histories including each date of any dual-dated response to Item 5.2.a, identify, by name a. Other than a relationship required audit report. and address, the entity with which the to be reported in Item 5.2 of Form 3, and Item 4.4 Broker or Dealer Audit Firm has each such relationship, and only if the Firm has not previously Reports With Respect to Which the Firm provide a brief description of each such reported the information on Form 1, Played a Substantial Role During the relationship. Form 2, or Form 3, state whether, as of Reporting Period Note: Item 5.2.b does not require the end of the reporting period, the Firm If no brokers or dealers are identified information concerning every other was owned or partly owned by an entity in response to Item 4.3.a, but the Firm entity that is part of the network, that was the subject of (a) a Board played a substantial role in the arrangement, alliance, partnership or disciplinary sanction entered within the preparation or furnishing of an audit association, but only information five years preceding the end of the report for a broker or dealer that was concerning the network, arrangement, reporting period, which has not been issued during the reporting period, alliance, partnership, or association vacated on review or appeal, provide the following information itself, or the principal entity through suspending or revoking that entity’s concerning each broker or dealer with which it operates. registration or disapproving that entity’s application for registration, or (b) a respect to which the Firm did so— Part VI—Personnel a. The broker’s or dealer’s name; Commission order under Rule 102(e) of b. The broker’s or dealer’s CRD In Part VI, the Firm should provide the Commission’s Rules of Practice number, and CIK number, if any; information that is current as of the last entered within the five years preceding c. The name of the registered public day of the reporting period. the end of the reporting period, which has not been vacated on appeal, accounting firm that issued the audit Item 6.1 Number of Firm Personnel report(s); suspending or denying the privilege of d. The end date(s) of the fiscal Provide the following numerical appearing or practicing before the period(s) covered by the financial totals— Commission. statements that were the subject of the Total number of the Firm’s b. If the Firm provides an affirmative audit report(s); and accountants; response to Item 7.2.a, provide— e. A description of the substantial role Total number of the Firm’s certified 1. The name of each such entity; played by the Firm with respect to the public accountants (include in this 2. A description of the nature of the audit report(s). number all accountants employed by relationship;

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3. The date that the Firm entered into d. If the Firm provides an affirmative 2207(c) if that associated person were a the relationship; and response to Item 8.1.c, provide the name registered public accounting firm filing 4. The date of the relevant order and of the other public accounting firm and a Form 2 and withholding this an indication whether it was a Board the number of the other public affirmation. This exception to the order or a Commission order. accounting firm’s former partners, affirmation in Item 9.1.b does not Item 7.3 Certain Arrangements To shareholders, principals, members, relieve the Firm of its obligation to Receive Consulting or Other owners, and accountants that joined the enforce cooperation and compliance Professional Services Firm. with Board demands by any such associated person as a condition of Part IX—Affirmation of Consent a. Other than a relationship required continued association with the Firm. to be reported in Item 5.3 of Form 3, Item 9.1 Affirmation of Understanding Note 3: If the Firm is a foreign state whether the Firm received, or of, and Compliance With, Consent registered public accounting firm, the entered into a contractual or other Requirements affirmations in Item 9.1 that relate to arrangement to receive, from any Whether or not the Firm, in applying associated persons shall be understood individual or entity meeting the criteria to encompass every accountant who is described in Items 7.1.a. or 7.2.a, for registration with the Board, provided the signed statement required by Item a proprietor, partner, principal, consulting or other professional services shareholder, officer, or audit manager of related to the Firm’s audit practice or 8.1 of Form 1, affirm that— a. The Firm has consented to the Firm and who provided at least ten related to services the Firm provides to cooperate in and comply with any hours of audit services for any issuer issuer, broker, or dealer audit clients. during the reporting period. b. If the Firm provides an affirmative request for testimony or the production response to Item 7.3.a, provide— of documents made by the Board in Part X—Certification of the Firm 1. The name of each such individual furtherance of its authority and Item 10.1 Signature of Partner or or entity; responsibilities under the Sarbanes- 2. A description of the nature of the Oxley Act of 2002; Authorized Officer relationship; b. The Firm has secured from each of This Form must be signed on behalf 3. The date that the Firm entered into its associated persons, and agrees to of the Firm by an authorized partner or the relationship; enforce as a condition of each such officer of the Firm including, in 4. A description of the services person’s continued employment by or accordance with Rule 2204, both a provided or to be provided to the Firm other association with the Firm, a signature that appears in typed form by the individual or entity; and consent indicating that the associated within the electronic submission and a 5. The date of the relevant order and person consents to cooperate in and corresponding manual signature an indication whether it was a Board comply with any request for testimony retained by the Firm. The signer must order or a Commission order. or the production of documents made certify that— by the Board in furtherance of its PART VIII—Acquisition of Another a. the signer is authorized to sign this Public Accounting Firm or Substantial authority under the Sarbanes-Oxley Act Form on behalf of the Firm; of 2002, and that the associated person b. the signer has reviewed this Form; Portions of Another Public Accounting c. based on the signer’s knowledge, Firm’s Personnel understands and agrees that such consent is a condition of his or her the Firm has filed a special report on If the Firm became registered on or continued employment by or other Form 3 with respect to each event that after December 31, 2009, the first annual association with the Firm; and occurred before the end of the reporting report that the Firm files must provide c. The Firm understands and agrees period and for which a special report on this information for the period running that cooperation and compliance, as Form 3 is required under the Board’s from the date used by the Firm for described in Item 9.1.a, and the securing rules; purposes of General Instruction 9 of and enforcing of consents from its d. based on the signer’s knowledge, Form 1 (regardless of whether that date associated persons as described in Item this Form does not contain any untrue was before or after the beginning of the 9.1.b, is a condition to the continuing statement of a material fact or omit to reporting period) through March 31 of effectiveness of the registration of the state a material fact necessary to make the year in which the annual report is Firm with the Board. the statements made, in light of the required to be filed. Note 1: The affirmation in Item 9.1.b circumstances under which such statements were made, not misleading; Item 8.1 Acquisition of Another Public shall not be understood to include an affirmation that the Firm has secured and Accounting Firm or Substantial Portions e. either— of Another Public Accounting Firm’s such consents from any associated 1. based on the signer’s knowledge, Personnel person that is a registered public the Firm has not failed to include in this a. State whether the Firm acquired accounting firm. Form any information or affirmation another public accounting firm. Note 2: The affirmation in Item 9.1.b that is required by the instructions to b. If the Firm provides an affirmative shall not be understood to include an this Form, or response to Item 8.1.a, provide the affirmation that the Firm has secured 2. based on the signer’s knowledge— name(s) of the public accounting firm(s) such consents from any associated (A) the Firm is a foreign registered that the Firm acquired. person that is a foreign public public accounting firm and has not c. State whether the Firm, without accounting firm in circumstances where failed to include in this Form any acquiring another public accounting that associated person asserts that non- information or affirmation that is firm, took on as employees, partners, U.S. law prohibits it from providing the required by the instructions to this Form shareholders, principals, members, or consent, so long as the Firm possesses except for information or affirmations owners 75% or more of the persons in its files documents relating to the that the Firm asserts it cannot provide who, as of the beginning of the reporting associated person’s assertion about non- to the Board on this Form 2 without period, were the partners, shareholders, U.S. law that would be sufficient to violating non-U.S. law; principals, members, or owners of satisfy the requirements of (B) with respect to any such withheld another public accounting firm. subparagraphs (2) through (4) of Rule information or affirmation, the Firm has

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satisfied the requirements of PCAOB Certain additional requirements apply, disciplinary sanction or Commission Rule 2207(b) and has in its possession but they vary depending on whether a Rule 102(e) order continued to be in the materials required by PCAOB Rule firm was registered as of December 31, effect as of December 31, 2009, and (3) 2207(c); and 2009. A firm that becomes registered the specified relationship continues to (C) the Firm has indicated, in after December 31, 2009, must, within exist as of December 31, 2009; accordance with the instructions to this thirty days of receiving notice of Board e. Information responsive to Items Form, each Item of this Form with approval of its registration application, 2.15 and 6.1 if (1) the loss of respect to which the Firm has withheld file this Form to report any reportable authorization relates to a jurisdiction or any required information or affirmation. events that occurred in a specified authority identified in Item 1.7 of the The signature must be accompanied period before approval of the firm’s Firm’s Form 1 and, (2) as of December by the signer’s title, the capacity in application for registration. See Rule 31, 2009, the Firm continues to lack the which the signer signed the Form, the 2203(a)(2). A firm that was registered as specified authorization in that date of signature, and the signer’s of December 31, 2009, must, by January jurisdiction; business mailing address, business 30, 2010, file this Form to report certain f. Information responsive to Items telephone number, business facsimile additional information that is current as 2.16 and 6.2 if the license or number, and business email address. of December 31, 2009. See Rule certification is in effect as of December 2203(a)(3) and General Instruction No. 4 31, 2009; and Part XI—Exhibits below. A special report shall be deemed g. Information responsive to Items To the extent applicable under the to be filed on the date that the Firm 2.17 and 2.18 and Part VII that is current foregoing instructions or the Board’s submits a Form 3 in accordance with as of December 31, 2009 to the extent rules, each annual report must be Rule 2203 that includes the signed that it differs from the corresponding accompanied by the following exhibits: certification required in Part VIII of information provided on the Firm’s Exhibit 3.2 Description of Form 3. Form 1. Methodology Used to Estimate 4. Required Filing to Bring Current 5. Completing the Form. A firm filing Components of Calculation in Item Certain Information for Firms Registered this Form must always complete Parts I, 3.2 and Reasons for Using Estimates as of December 31, 2009. If the Firm is II, and VIII of this Form. Parts III Exhibit 99.1 Request for Confidential registered as of December 31, 2009, the through VII should be completed to the Treatment Firm must file a special report on this extent applicable, as described more Exhibit 99.3 Materials Required by Form no later than January 30, 2010, to fully in the instructions to Part II of the Rule 2207(c)(2)–(4)—Submit Only as report the information specified below, Form. an Exhibit to an Amended Form 2 in to the extent that it has not been 6. Amendments to this Report. Response to a Request Made Pursuant reported on the Firm’s Form 1 filing. Amendments shall not be filed to to Rule 2207(d) The Firm must make this Form 3 filing update information in a filed Form 3 to report the following information even that was correct at the time the Form Form 3—Special Report Form if the Firm has previously informally was filed, but only to correct General Instructions disclosed the information to the Board information that was incorrect at the or its staff— 1. Submission of this Report. Effective time the Form was filed or to provide a. Information responsive to Items 2.4 information that was omitted from the December 31, 2009, a registered public through 2.9 and Item 4.1 if (1) the accounting firm must use this Form to Form and was required to be provided proceeding is pending as of December at the time the Form was filed. When file special reports with the Board 31, 2009, and (2) the defendants or pursuant to Section 102(d) of the Act filing a Form 3 to amend an earlier filed respondents as of that date include Form 3, the Firm must supply not only and Rule 2203 and to file any either the Firm or a person who is a amendments to a special report. Unless the corrected or supplemental partner, shareholder, principal, owner, information, but must include in the otherwise directed by the Board, the member, or audit manager of the Firm Firm must file this Form, and all amended Form 3 all information, as of that date; affirmations, and certifications that were exhibits to this Form, electronically b. Information responsive to Items required to be included in the original with the Board through the Board’s 2.10 and 4.2 if (1) the conclusion of a Form 3. The Firm may access the Web-based system. proceeding as to any party specified originally filed Form 3 through the 2. Defined Terms. The definitions in there occurred after the date used by the Board’s Web-based system and make the the Board’s rules apply to this Form. firm for purposes of General Instruction appropriate amendments without Italicized terms in the instructions to 9 to Form 1 and before December 31, needing to re-enter all other this Form are defined in the Board’s 2009, and (2) the proceeding resulted in information. rules. In addition, as used in the any conviction of, judgment against, instructions to this Form, the term ‘‘the imposition of any liability or sanction Note: The Board will designate an Firm’’ means the registered public on, or Commission Rule 102(e) order amendment to a special report as a accounting firm that is filing this Form against the Firm or any person who is report on ‘‘Form 3/A.’’ with the Board. a partner, shareholder, principal, owner, 7. Rules Governing this Report. In 3. When this Report is Required and member, or audit manager of the Firm addition to these instructions, the rules When It is Considered Filed. Upon the as of December 31, 2009; contained in Part 2 of Section 2 of the occurrence of any event specified in c. Information responsive to Items Board’s rules govern this Form. Please Part II of this Form, the Firm must 2.11 and 4.3 if the Firm is the subject read these rules and the instructions report the event on this Form by of a petition or proceeding described carefully before completing this Form. following the instructions to this Form. there as of December 31, 2009; 8. Requests for Confidential With respect to events that occur on or d. Information responsive to Items Treatment. The Firm may, by marking after December 31, 2009 and while the 2.12 through 2.14 and Part V if (1) the the Form in accordance with the Firm is registered, the Firm must file the relationship commenced after the date instructions provided, request Form no later than thirty days after the used by the firm for purposes of General confidential treatment of any occurrence of the event reported. Instruction 9 to Form 1, (2) the specified information submitted in Item 3.1.c,

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Part IV, Part V, Item 6.1.d, Item 7.1.d, or 10. Language. Information submitted concerning the matter pursuant to Exhibit 99.3 of this Form that has not as part of this Form, including any Item 4.02 of Commission Form 8–K. otherwise been publicly disclosed and exhibit to this Form, must be in the (Complete Item 3.1 and Part VIII.) that either contains information English language. Item 2.1–C The Firm has resigned, reasonably identified by the Firm as declined to stand for re-appointment, Part I—Identity of the Firm proprietary information or that is or been dismissed from an audit protected from public disclosure by Item 1.1 Name of Firm engagement as principal auditor (or an auditor upon whom the issuer’s applicable laws related to a. State the legal name of the Firm. confidentiality of proprietary, personal, principal auditor expressed reliance Note: If the Firm is filing this Form 3 or other information. See Rule 2300. If in its report regarding a significant to report that the Firm’s legal name has the Firm requests confidential subsidiary), and the issuer has failed changed, the name entered in Item 1.1.a treatment, it must identify the to comply with a Commission should be the Firm’s legal name before information in Item 3.1.c, Part IV, Part requirement to make a report the name change that is being reported. V, Item 6.1.d, Item 7.1.d, or Exhibit 99.3 concerning the matter pursuant to The Firm’s new name should be that it desires to keep confidential, and Item 4.01 of Commission Form 8–K. included in the response to Item 1.1.c. (Complete Item 3.2 and Part VIII.) include, as Exhibit 99.1 to this Form, a b. If different than its legal name, state representation that, to the Firm’s Item 2.2 The Firm has issued audit the name or names under which the reports with respect to more than 100 knowledge, the information for which Firm issues audit reports. confidential treatment is requested has issuers in a calendar year immediately c. If the Firm is filing this Form 3 to following a calendar year in which not otherwise been publicly disclosed, report that the Firm’s legal name has and a detailed explanation of the the Firm did not issue audit reports changed, state the new legal name of the with respect to more than 100 issuers. grounds on which the information is Firm. considered proprietary or a detailed (Complete Part VIII.) Item 2.3 The Firm has issued audit explanation of the basis for asserting Part II—Reason for Filing This Report reports with respect to 100 or fewer that the information is protected by law Indicate, by checking the relevant issuers in a completed calendar year from public disclosure and a copy of the box(es) from among Items 2.1 through immediately following a calendar year specific provision of law that the Firm 2.18 below, the event(s) being reported in which the Firm issued audit claims protects the information from on this Form. More than one event may reports with respect to more than 100 public disclosure. If the Firm fails to be reported in the same Form 3 filing. issuers. (Complete Part VIII.) include Exhibit 99.1, or includes an For each event indicated below, proceed Exhibit 99.1 that fails to comply with to the Parts and Items of this Form Certain Legal Proceedings Rule 2300(c)(2), the request for indicated parenthetically for the specific Item 2.4 The Firm has become aware confidential treatment may be denied event being reported and provide the that the Firm has become a defendant solely on the basis of the failure. The information therein described. Provide in a criminal proceeding prosecuted Board will normally grant confidential responses only to those Parts and Items by a governmental criminal law treatment requests for information of the Form specifically indicated for enforcement authority. (Complete concerning non-public disciplinary the event or events that the Firm Item 4.1 and Part VIII.) proceedings. The Board will determine identifies in this Part II as an event Item 2.5 The Firm has become aware whether or not to grant other being reported on this Form. (For that, in a matter arising out of his or confidential treatment requests on a example, if the Form is being filed her conduct in the course of providing case-by-case basis. See Rule 2300(c). solely to report that the Firm has audit services or other accounting 9. Assertions of Conflicts with Non- changed its name, check the box for services to an issuer, broker, dealer, a U.S. Law. If the Firm is a foreign Item 2.17 in this Part of the Form, and partner, shareholder, principal, registered public accounting firm, the complete only Item 7.1 and Part VIII of owner, member, or audit manager of Firm may, unless otherwise directed by the Form.) If the Firm is filing this Form the Firm has become a defendant in the Board pursuant to Rule 2207(e), to amend a previous filing, the Firm also a criminal proceeding prosecuted by a decline to provide certain information should complete Item 2.19. governmental criminal law required by this Form if the Firm could Note: In Items 2.4 through 2.11 and enforcement authority. (Complete not provide such information without Item 2.15, the reportable event is Item 4.1 and Part VIII.) violating non-U.S. law and the Firm described in terms of whether the Firm Item 2.6 The Firm has become aware proceeds in accordance with Rule 2207. ‘‘has become aware’’ of certain facts. For that a partner, shareholder, principal, The Firm may withhold responsive these purposes, the Firm is deemed to owner, member, or audit manager of information on that basis from any Part have become aware of the relevant facts the Firm who provided at least ten of the Form other than Parts I, II, and on the date that any partner, hours of audit services for any issuer, VIII, and Items 7.1.a, 7.1.b, 7.1.c, and shareholder, principal, owner, or broker, or dealer during the Firm’s 7.2. If the firm withholds responsive member of the Firm first becomes aware current fiscal year or its most recently information, the Firm must indicate, in of the facts. completed fiscal year has become a accordance with the instructions in the defendant in a criminal proceeding relevant Part of the Form, the particular Audit Reports prosecuted by a governmental Items with respect to which the Firm Item 2.1 The Firm has withdrawn an criminal law enforcement authority has withheld responsive information. audit report on an issuer’s financial and is charged with fraud, The Firm may not use the Form to make statements, or withdrawn its consent embezzlement, forgery, extortion, any general assertion that a particular to the use of its name in a report, bribery, obstruction of justice, perjury, requirement may conflict with non-U.S. document, or written communication or false statements; or charged with law, but only to indicate that, on the containing an issuer’s financial any crime arising out of alleged basis of an asserted conflict, the Firm statements, and the issuer has failed conduct relating to accounting, has in fact withheld from this Form to comply with a Commission auditing, securities, banking, required information. requirement to make a report commodities, taxation, consumer

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protection, or insurance. (Complete person or entity performing a by the Firm. (Complete Item 6.2 and Item 4.1 and Part VIII.) comparable function) has assumed Part VIII.) Item 2.7 The Firm has become aware jurisdiction over substantially all of Changes in the Firm or the Firm’s Board that, in a matter arising out of the the assets or business of the Firm or Contact Person Firm’s conduct in the course of its parent or a subsidiary. (Complete providing professional services for a Item 4.3 and Part VIII.) Item 2.17 The Firm has changed its client, the Firm has become a legal name while otherwise remaining defendant or respondent in a civil or Certain Relationships the same legal entity that it was before alternative dispute resolution Item 2.12 The Firm has taken on as an the name change. (Complete Item 7.1 proceeding initiated by a employee, partner, shareholder, and Part VIII.) governmental entity or in an principal, or member, or has Item 2.18 There has been a change in administrative or disciplinary otherwise become owned or partly the business mailing address, proceeding other than a Board owned by, a person who is currently business telephone number, business disciplinary proceeding. (Complete the subject of (a) a Board disciplinary facsimile number, or business email Item 4.1 and Part VIII.) sanction suspending or barring the of the person most recently Item 2.8 The Firm has become aware person from being an associated designated by the Firm (on Form 2, that, in a matter arising out of his or person of a registered public Form 3, or Form 4) as the Firm’s her conduct in the course of providing accounting firm, (b) a Commission primary contact with the Board, or the audit services or other accounting order suspending or denying the Firm is designating a new person to services to an issuer, broker, dealer, a privilege of appearing or practicing serve as the primary contact. partner, shareholder, principal, before the Commission, or (c) a court- (Complete Item 7.2 and Part VIII.) owner, member, or audit manager of ordered injunction prohibiting Amendment the Firm has become a defendant or appearance or practice before the respondent in a civil or alternative Commission. (Complete Item 5.1 and Item 2.19 Amendments dispute resolution proceeding Part VIII.) If this is an amendment to a report initiated by a governmental entity or Item 2.13 The Firm has become owned previously filed with the Board— in an administrative or disciplinary or partly owned by an entity that is a. Indicate, by checking the box proceeding other than a Board currently the subject of (a) a Board corresponding to this item, that this is disciplinary proceeding. (Complete disciplinary sanction suspending or an amendment. Item 4.1 and Part VIII.) b. Identify the specific Item numbers Item 2.9 The Firm has become aware revoking that entity’s registration or disapproving that entity’s application of this Form (other than this Item 2.19) that, in a matter arising out of his or as to which the Firm’s response has her conduct in the course of providing for registration, (b) a Commission order suspending or denying the changed from that provided in the most professional services for a client, a recent Form 3 or amended Form 3 filed partner, shareholder, principal, privilege of appearing or practicing before the Commission, or (c) a court- by the Firm with respect to the events owner, member, or audit manager of reported on this Form. the Firm who provided at least ten ordered injunction prohibiting hours of audit services for any issuer, appearance or practice before the PART III—WITHDRAWN AUDIT broker, or dealer during the Firm’s Commission. (Complete Item 5.2 and REPORTS AND ISSUER AUDITOR current fiscal year or its most recently Part VIII.) CHANGES completed fiscal year has become a Item 2.14 The Firm has entered into a Item 3.1 Withdrawn issuer audit defendant or respondent in a civil or contractual or other arrangement to reports and consents alternative dispute resolution receive consulting or other proceeding initiated by a professional services from a person or If the Firm has withdrawn an audit governmental entity or in an entity meeting any of the criteria report on an issuer’s financial administrative or disciplinary described in Items 2.12 or 2.13 above. statements, or withdrawn its consent to proceeding other than a Board (Complete Item 5.3 and Part VIII.) the use of its name in a report, disciplinary proceeding. (Complete Licenses and Certifications document, or written communication Item 4.1 and Part VIII.) containing an issuer’s financial Item 2.10 The Firm has become aware Item 2.15 The Firm has become aware statements, and the issuer has failed to that a proceeding meeting the criteria that its authorization to engage in the comply with a Commission requirement described in Items 2.4, 2.5, 2.6, 2.7, business of auditing or accounting in to make a report concerning the matter 2.8, or 2.9, above has been concluded a particular jurisdiction has ceased to pursuant to Item 4.02 of Commission as to the Firm or a partner, be effective or has become subject to Form 8–K, provide— shareholder, principal, owner, conditions or contingencies other a. The issuer’s name and CIK number, member, or audit manager of the Firm than conditions or contingencies if any; (whether by dismissal, acceptance of imposed on all firms engaged in the b. The date(s) of the audit report(s) pleas, through consents or settlement business of auditing or accounting in that the Firm has withdrawn, or to agreements, the entry of a final the jurisdiction. (Complete Item 6.1 which the Firm’s withdrawal of consent judgment, or otherwise). (Complete and Part VIII.) relates; and Item 4.2 and Part VIII.) Item 2.16 The Firm has obtained a c. A description of the reason(s) the Item 2.11 The Firm has become aware license or certification authorizing the Firm has withdrawn the audit report(s) that the Firm, or the parent or a Firm to engage in the business of or the consent. subsidiary of the Firm, has become auditing or accounting and which has Note: The 30-day period in which the the subject of a petition filed in a not been identified on any Form 1 or Firm must report the event does not bankruptcy court, or has otherwise Form 3 previously filed by the Firm, begin to run unless and until the issuer become the subject of a proceeding in or there has been a change in a license fails to report on Form 8–K within the which a court or governmental agency or certification number identified on time required by the Commission’s (or, in a non-U.S. jurisdiction, a a Form 1 or Form 3 previously filed rules. The Firm must then report the

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event on Form 3 within 30 days of the conduct in violation of those statutes, PART V—CERTAIN RELATIONSHIPS expiration of the required Form 8–K rules, or legal duties. filing deadline, unless, within that 30- e. The name of any client that was the Item 5.1 New Relationship With day period, the issuer reports on a late- recipient of the professional services to Person Subject to Bar or Suspension filed Form 8–K. which any claim or charge in the If the Firm has taken on as an proceeding relates. Item 3.2 Issuer auditor changes employee, partner, shareholder, Note: For the purpose of this Part, principal, or member, or has otherwise If the Firm has resigned, declined to administrative or disciplinary stand for re-appointment, or been become owned or partly owned by, a proceedings include those of the person who is currently the subject of dismissed from an audit engagement as Commission; any other federal, state, or principal auditor (or an auditor upon (a) a Board disciplinary sanction non-U.S. agency, board, or suspending or barring the person from whom the issuer’s principal auditor administrative or licensing authority; expressed reliance in its report being an associated person of a and any professional association or registered public accounting firm, (b) a regarding a significant subsidiary) and body. Investigations that have not Commission order suspending or the issuer has failed to comply with a resulted in the commencement of a denying the privilege of appearing or Commission requirement to make a proceeding need not be included. report concerning the matter pursuant to practicing before the Commission, or (c) Item 4.01 of Commission Form 8–K, Item 4.2 Concluded Criminal, a court-ordered injunction prohibiting provide— Governmental, Administrative, or appearance or practice before the a. The issuer’s name and CIK number, Disciplinary Proceedings Commission, provide— if any; and If any proceeding meeting the criteria a. the name of the person; b. Whether the Firm resigned, described in Items 2.4, 2.5, 2.6, 2.7, 2.8, declined to stand for re-election, or was b. the nature of the person’s or 2.9, including any proceeding relationship with the Firm; and dismissed and the date thereof. reported in Item 4.1, has been c. the date on which the person’s PART IV—CERTAIN PROCEEDINGS concluded as to the Firm or a partner, shareholder, principal, owner, member, relationship with the Firm began. Item 4.1 Criminal, Governmental, or audit manager of the Firm (whether Administrative, or Disciplinary Item 5.2 New Ownership Interest by by dismissal, acceptance of pleas, Firm Subject to Bar or Suspension Proceedings through consents or settlement If the Firm has indicated in this Form agreements, the entry of a final If the Firm has become owned or 3 that any of the events described in judgment, or otherwise), provide— partly owned by an entity that is Items 2.4, 2.5, 2.6, 2.7, 2.8, or 2.9 has a. The name, filing date, and case or currently the subject of (a) a Board occurred, provide the following docket number of the proceeding, and disciplinary sanction suspending or information with respect to each such the nature of the proceeding, i.e., revoking that entity’s registration or event— whether it is a criminal proceeding, a disapproving that entity’s application a. The name, filing date, and case or civil or alternative dispute resolution for registration, (b) a Commission order docket number of the proceeding, and proceeding, or an administrative or suspending or denying the privilege of the nature of the proceeding, i.e., disciplinary proceeding; appearing or practicing before the whether it is a criminal proceeding, a b. The name of the court, tribunal, or Commission, or (c) a court-ordered civil or alternative dispute resolution body in or before which the proceeding injunction prohibiting appearance or proceeding, or an administrative or was filed; and practice before the Commission, disciplinary proceeding. c. A brief description of the terms of provide— b. The name of the court, tribunal, or the conclusion of the proceeding as to body in or before which the proceeding the Firm or partner, shareholder, a. the name of the entity that has was filed. principal, owner, member, or audit obtained an ownership interest in the c. An indication whether the Firm manager. Firm; itself is a defendant or respondent in the b. the nature and extent of the Item 4.3 Bankruptcy or Receivership proceeding and, if so, the statutes, rules, ownership interest; and If the Firm, or the parent or a or legal duties that the firm is alleged to c. the date on which the ownership subsidiary thereof, has become the have violated, and a brief description of interest was obtained. the firm’s alleged conduct in violation subject of a petition filed in a of those statutes, rules, or legal duties. bankruptcy court, or has otherwise Item 5.3 Certain Arrangements To d. The names of every defendant or become the subject of a proceeding in Receive Consulting or Other respondent who is a partner, which a court or governmental agency Professional Services shareholder, principal, owner, member, (or, in a non-U.S. jurisdiction, a person or audit manager of the Firm, or who or entity performing a comparable If the Firm has entered into a was such either at the time the Firm function) has assumed jurisdiction over contractual or other arrangement to received notice of the proceeding or at substantially all of the assets or business receive consulting or other professional the time of the alleged conduct on of the Firm or its parent or a subsidiary, services from a person or entity meeting which any claim or charge is based, and provide— any of the criteria described in Items who provided at least ten hours of audit a. the name of the proceeding; 2.12 or 2.13 above, provide— services for any issuer, broker, or dealer b. the name of the court or a. the name of the person or entity; during the Firm’s current fiscal year or governmental body; its most recent fiscal year; and, as to c. the date of the filing or of the b. the date that the Firm entered into each such defendant or respondent, the assumption of jurisdiction; and the contract or other arrangement; and statutes, rules, or legal duties that he or d. the identity of the receiver, fiscal c. a description of the services to be she is alleged to have violated, and a agent or similar officer, if applicable, provided to the Firm by the person or brief description of his or her alleged and the date of his or her appointment. entity.

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PART VI—LICENSES AND b. State the legal name of the Firm PART VIII—CERTIFICATION OF THE CERTIFICATIONS immediately preceding the new legal FIRM name; Item 6.1 Loss of, or Limitations Item 8.1 Signature of Partner or Imposed on, Authorization To Engage in c. State the effective date of the name Authorized Officer the Business of Auditing or Accounting change; d. Provide a brief description of the This Form must be signed on behalf If the Firm’s authorization to engage reason(s) for the change; and of the Firm by an authorized partner or in the business of auditing or officer of the Firm including, in e. Affirm, by checking the box accounting in a particular jurisdiction accordance with Rule 2204, both a corresponding to this Item, that, other has ceased to be effective or has become signature that appears in typed form than the name change, the Firm is the subject to conditions or contingencies within the electronic submission and a same legal entity that it was before the other than conditions or contingencies corresponding manual signature name change. imposed on all firms engaged in the retained by the Firm. The signer must business of auditing or accounting in Note: If, other than the name change, certify that— the jurisdiction, provide— the Firm is not the same legal entity that a. the signer is authorized to sign this a. the name of the state, agency, board it was before the name change, whether Form on behalf of the Firm; or other authority that had issued the because of a change in the Firm’s legal b. the signer has reviewed this Form; license or certification related to such form of organization or because of other c. based on the signer’s knowledge, authorization; transactions, the registration status of this Form does not contain any untrue b. the number of the license or the predecessor firm does not statement of a material fact or omit to certification; automatically attach to the Firm, and state a material fact necessary to make c. the date that the authorization the Firm cannot report the event as a the statements made, in light of the ceased to be effective or became subject name change. If the Firm cannot make circumstances under which such to conditions or contingencies, and the affirmation required by Item 7.1.e, statements were made, not misleading; d. a brief description of the reason(s) the Firm cannot execute the certification and for such action, including a description in Part VIII as to Item 7.1, and this Form d. either— of the conditions or contingencies, if cannot be deemed filed under Rule 1. based on the signer’s knowledge, any. 2206. the Firm has not failed to include in this In that event, the Firm should Item 6.2 New License or Certification Form any information or affirmation consider whether, pursuant to the that is required by the instructions to If the Firm has obtained any license provisions of Rule 2108, the Firm can this Form, with respect to the event or or certification authorizing the Firm to make the representations required in a events being reported on this Form, or engage in the business of auditing or Form 4 filing to enable the predecessor 2. based on the signer’s knowledge— accounting, and which has not been firm’s registration to attach to the Firm. (A) the Firm is a foreign registered identified on any Form 1 or Form 3 If the Firm cannot or does not file with public accounting firm and has not previously filed by the Firm, or there the Board a Form 4 making all necessary failed to include in this Form any has been a change in any license or representations, the predecessor firm’s information or affirmation that is certification number identified on a registration does not attach to the Firm. required by the instructions to this Form 1 or Form 3 previously filed by In those circumstances, the Firm may Form, with respect to the event or the Firm, provide— not lawfully prepare or issue an audit events being reported on this Form, a. the name of the issuing state, report without first filing an application except for information or affirmations agency, board or other authority; for registration on Form 1 and having that the Firm asserts it cannot provide b. the number of the license or that application approved by the Board. to the Board on this Form 3 without certification; Note: If the Firm is filing a Form 4 to violating non-U.S. law; c. the date the license or certification report a change in its form of took effect; and (B) with respect to any such withheld organization, change in jurisdiction, or d. if the license or certification information or affirmation, the Firm has a business combination, the Firm replaces another license or certification made the efforts required by PCAOB should report any related name change issued by the same authority, the Rule 2207(b) and has in its possession on Form 4 and not on Form 3. number of the replaced license or the materials required by PCAOB Rule 2207(c); and certification. Item 7.2 Change in Contact Information (C) the Firm has indicated, in Note: If the Firm is filing a Form 4 to accordance with the instructions to this report a change in its form of If there has been a change in the Form, each Item of this Form with organization, change in jurisdiction, or business mailing address, business respect to which the Firm has withheld a business combination, the Firm telephone number, business facsimile any required information. should report on Form 4, rather than number, or business email address of The signature must be accompanied Form 3, any related license change that the person most recently designated by by the signer’s title, the capacity in takes effect before the submission of the the Firm (on Form 2, Form 3, or Form which the signer signed the Form, the Form 4. 4) as the Firm’s primary contact with date of signature, and the signer’s PART VII—CHANGES IN THE FIRM the Board, or if the Firm is designating business mailing address, business OR THE FIRM’S BOARD CONTACT a new person to serve as the primary telephone number, business facsimile PERSON contact, provide the name and current number, and business email address. business mailing address, business Item 7.1 Change in Name of Firm telephone number, business facsimile PART IX—EXHIBITS If the Firm is reporting a change in its number, and business email of the To the extent applicable under the legal name— partner or authorized officer of the Firm foregoing instructions, each special a. State the new legal name of the who will serve as the Firm’s primary report must be accompanied by the Firm; contact with the Board. following exhibits:

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Exhibit 99.1 Request for Confidential when the Firm has submitted to the and as to which a Board decision on Treatment Board, through the Board’s Web-based whether to allow the form to be filed is Exhibit 99.3 Materials Required by reporting system, a Form 4 that includes pending, shall not be treated as an Rule 2207(c)(2)–(4)—Submit Only as the signed certification required in Part amendment. To make a change to any an Exhibit to an Amended Form 3 in V of Form 4, provided, however, that such pending Form 4 submission, the Response to a Request Made Pursuant any Form 4 so submitted after the Firm must access the pending to Rule 2207(d) applicable filing deadline shall not be submission in the Board’s Web-based * * * * * deemed filed unless and until the system, select the ‘‘Withdraw and Board, pursuant to Rule 2108(d), grants Replace’’ option, and submit a new FORM 4—SUCCEEDING TO leave to file the Form 4 out of time. completed Form 4 in place of the REGISTRATION STATUS OF 5. Seeking Leave To File this Form previously pending submission. The PREDECESSOR Out of Time. To request leave to file certification required in Part V of the GENERAL INSTRUCTIONS Form 4 out of time, pursuant to the new submission must be executed specifically for the replacement version 1. Purpose of this Form. Effective provisions of Rule 2108(d), the Firm must file the request on Form 4 and of the Form and dated accordingly. December 31, 2009, this Form must be 8. Rules Governing this Form. In used to submit information, must attach as Exhibit 99.5 a detailed statement describing why, despite the addition to these instructions, the rules representations, and affirmations to the contained in Part 2 of Section 2 of the Board, pursuant to Rule 2109, by a passage of time since the event described on the Form 4, the Board Board’s rules govern this Form. Please public accounting firm that seeks to read these rules and the instructions succeed to the registration status of a should permit the Firm to succeed to the registration status of the predecessor carefully before completing this Form. predecessor firm in circumstances 9. Requests for Confidential described in Rule 2108. firm. Any Form 4 that has been submitted out of time, and as to which Treatment. The Firm may, by marking 2. Defined Terms. The definitions in the Form in accordance with the the Board’s rules apply to this Form. a Board decision on whether to allow the form to be filed is pending, may be instructions provided, request Italicized terms in the instructions to confidential treatment of any this Form are defined in the Board’s withdrawn by accessing the pending submission in the Board’s Web-based information submitted in Exhibit 99.3 or rules. In addition, as used in the Exhibit 99.5 of this Form that has not instructions to this Form, the term ‘‘the system and selecting the ‘‘Withdraw’’ option. otherwise been publicly disclosed and Firm’’ means the public accounting firm that either contains information that is submitting this Form to the 6. Completing the Form. The Firm must complete Parts I, II, IV and V of reasonably identified by the Firm as Board, and the term ‘‘the predecessor proprietary information or that is firm’’ means the registered public this Form. Part III should be completed to the extent applicable, as described protected from public disclosure by accounting firm identified in Item 1.1.a applicable laws related to of the Form. more fully in the instructions to Part II of the Form. confidentiality of proprietary, personal, 3. Submission of this Form. Unless or other information. See Rule 2300. If otherwise directed by the Board, the 7. Amendments to this Form. Amendments shall not be submitted to the Firm requests confidential Firm must submit this Form, and all treatment, it must identify the exhibits to this Form, to the Board update information into a Form 4 that was correct at the time the Form was information in Exhibit 99.3 or Exhibit electronically by completing the Web- 99.5 that it desires to keep confidential, based version of this Form available on submitted, but only to correct information that was incorrect at the and include, as Exhibit 99.1 to this the Board’s Web site. The Firm must use Form, a representation that, to the the predecessor firm’s user ID and time the Form was submitted or to provide information that was omitted Firm’s knowledge, the information for password to access the system and which confidential treatment is from the Form and was required to be submit the Form. In the event of a requested has not otherwise been provided at the time the Form was transaction involving the combination publicly disclosed, and a detailed submitted. When submitting a Form 4 to of multiple registered public accounting explanation of the grounds on which the amend an earlier submitted Form 4, the firms, the Firm must access the system information is considered proprietary or Firm must supply not only the corrected using only the user ID and password of a detailed explanation of the basis for or supplemental information, but must the firm specifically identified in Item asserting that the information is include in the amended Form 4 all 1.1.a, and not those of any other protected by law from public disclosure information, affirmations, and registered public accounting firm. and a copy of the specific provision of certifications that were required to be 4. When this Form Should be law that the Firm claims protects the Submitted and When It is Considered included in the original Form 4. The information from public disclosure. If Filed. To succeed to the registration Firm may access the originally filed the Firm fails to include Exhibit 99.1, or status of the predecessor firm pursuant Form 4 through the Board’s Web-based includes an Exhibit 99.1 that fails to to the provisions of Rule 2108(a) or (b), system and make the appropriate comply with Rule 2300(c)(2), the the Firm must provide the information amendments without needing to re- request for confidential treatment may and representations required by this enter all other information. (Note that, be denied solely on the basis of the Form, in accordance with the pursuant to Rule 2109(d), the provisions failure. The Board will normally grant instructions to this Form, and must file of Rule 2205 concerning amendments confidential treatment requests for the Form no later than the 14th day after apply to any submission on this Form information concerning non-public the effective date of the change in form as if the submission were a report on disciplinary proceedings. The Board of organization, change in jurisdiction of Form 3.) will determine whether or not to grant organization, or business combination. Note: The Board will designate an other confidential treatment requests on Different timing requirements apply amendment to a report on Form 4 as a a case-by-case basis. See Rule 2300(c). with respect to events that occurred report on ‘‘Form 4/A.’’ 10. Assertions of Conflicts with Non- before December 31, 2009. See Rule Note: Any change to a Form 4 that U.S. Law. If the Firm is a foreign 2109(a)(2). Form 4 is considered filed was originally submitted out of time, registered public accounting firm, the

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Firm may, unless otherwise directed by business telephone number, business Item 2.3 Amendments the Board pursuant to Rule 2207(e), facsimile number, and business email If this is an amendment to a Form 4 decline to provide the affirmation address of a partner or authorized previously filed with the Board— required by Item 4.1 of this Form and officer of the Firm who will serve as the a. Indicate, by checking the box any answer required by Item 3.2.e of Firm’s primary contact with the Board, corresponding to this item, that this is this Form if doing so would constitute including for purposes of this Form 4, an amendment. a violation of non-U.S. law by the Firm any annual reports filed on Form 2, and b. Identify the specific Item numbers and the Firm proceeds in accordance any special reports filed on Form 3. of this Form (other than this Item 2.3) with Rule 2207. (Note that, pursuant to PART II—GENERAL INFORMATION as to which the Firm’s response has Rule 2109(d), the provisions of Rule CONCERNING THE FILING OF THIS changed from that provided in the most 2207 apply to any submission on this FORM recent Form 4 or amended Form 4 filed Form as if the submission were a report by the Firm with respect to the event on Form 3.) If the firm withholds the Item 2.1 Reason for Filing this Form reported on this Form. affirmation or answer, the Firm must indicate, in accordance with the Indicate, by checking the box for PART III—CHANGES IN THE FIRM instructions in the relevant Part of the either Item a or Item b below, the reason Item 3.1 Changes in Form of Form, that it has done so. the Firm is filing this Form. Then Organization or in Relevant Jurisdiction 11. Language. Information submitted proceed to the Parts and Items of this as part of this Form, including any Form indicated parenthetically for the If this Form 4 is being submitted in exhibit to this Form, must be in the relevant item and provide the connection with a change in the Firm’s English language. information described there. Provide form of organization or a change in the responses only to those Parts and Items jurisdiction under the law of which the PART I—IDENTITY OF THE FIRM of the Form specifically indicated for Firm is organized— AND CONTACT PERSONS the event or events that the Firm a. State the Firm’s current (i.e., after Item 1.1 Names of Firm and identifies in this Part II as the reason for the change in legal form or jurisdiction) Predecessor Registered Public filing this Form. (For example, if the legal form of organization; Accounting Firm Form is being submitted because the b. Identify the jurisdiction under the Firm has changed its form of a. State the legal name of the law of which the Firm is organized organization, check the box for Item registered public accounting firm to currently (i.e., after the change in legal 2.1.a, and complete only Item 3.1 and whose registration status the Firm seeks form or jurisdiction); and Parts IV and V of the Form. Complete to succeed. c. State the date that the change took Item 2.2 or Item 2.3 if applicable.) effect. Note: The name provided in Item d. Affirm that, after the change 1.1.a should be the legal name of the a. There has been a change in the reported or described in this Item 3.1, registered public accounting firm as last Firm’s form of organization, or the Firm the Firm is a public accounting firm reported to the Board on Form 1 or has changed the jurisdiction under the under substantially the same ownership Form 3. This is the firm referred to in law of which it is organized. (Complete as the predecessor firm. this Form as ‘‘the predecessor firm.’’ In Item 3.1, Part IV, and Part V; complete accessing and submitting this Form Item 2.2 or Item 2.3 if applicable.) Note: Neither the Act nor Board rules through the Board’s Web-based system, b. There has been an acquisition of a include any provision by which a the Firm must use the predecessor registered public accounting firm by an registered public accounting firm may, firm’s user ID and password. entity that was not a registered public in effect, transfer its Board registration b. State the legal name of the Firm accounting firm at the time of the to another entity. Rule 2108(a), in filing this Form. acquisition, or a registered public conjunction with this Form, allows the Note: The name provided in Item accounting firm has combined with succession of registration status in 1.1.b will be the name under which the another entity or other entities to form circumstances in which a registered Firm is registered with the Board if this a new legal entity. (Complete Item 3.2, public accounting firm changes its legal Form is filed in accordance with Rule Part IV, and Part V; complete Item 2.2 form of organization while remaining 2109. or Item 2.3 if applicable.) under substantially the same ownership. c. If different than the name provided For purposes of this Item, the Firm is Item 2.2 Request for Leave To File considered to be under substantially the in Item 1.1.b, state the name or names This Form Out of Time under which the Firm issues or intends same ownership as the predecessor firm if a majority of the persons who held an to issue audit reports. If this Form is not submitted in equity ownership interest in the accordance with Rule 2109(b) on or Item 1.2 Contact Information of the predecessor also constitute a majority of before the filing deadline set by Rule Firm the persons who hold an equity 2109(a), the Firm may request leave to ownership interest in the Firm. a. State the physical address (and, if file this Form 4 out of time by checking e. If, in connection with the change different, mailing address) of the Firm’s the box for this Item, completing this described in this Item 3.1, the Firm has headquarters office. Form 4 as is otherwise required, and obtained, or will practice under, a b. State the telephone number and providing, as Exhibit 99.5 to this Form, license or certification number, facsimile number of the Firm ’s a description of the reason(s) the Form authorizing it to engage in the business headquarters office. If available, state was not timely filed and a statement of of auditing or accounting, that is the Web site address of the Firm. the grounds on which the Firm asserts different from any such license or that the Board should grant leave to file Item 1.3 Primary Contact and certification number previously the Form out of time. Signatory reported to the Board by the predecessor a. State the name, business title, Note: Requests for leave to file Form firm, provide as to each such license— physical business address (and, if 4 out of time are not automatically 1. the name of the issuing state, different, business mailing address), granted. See Rule 2108(d). agency, board, or other authority;

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2. the number of the license or retained by the Firm in accordance with e. Provide a ‘‘yes’’ or ‘‘no’’ answer to certification; Rule 2109(d). The signature must be each of the following questions— 3. the date the license or certification accompanied by the signer’s current 1. Is there identified in Item 3.2.a.2 took effect. title, the signer’s title immediately any entity that, if it were filing an f. If, in connection with the change before the event described in Item 3.2.a, application for registration on Form 1 described in this Item 3.1, any license the date of signature, and the signer’s on the date of the certification in Part V or certification that authorized the business mailing address, business of this Form, would have to provide an predecessor firm to engage in the telephone number, business facsimile affirmative response to Item 5.1.a of business of auditing or accounting has number, and business email address. Form 1 in order to file a complete and ceased to be effective or has become Other than the insertion of the relevant truthful Form 1? subject to any conditions or names, Exhibit 99.4 must be in the exact Note: In considering whether an contingencies other than conditions or following words— affirmative response would be required contingencies imposed on all firms On behalf of [name of the Firm], I to Item 5.1.a of Form 1, the Firm should engaged in the business of auditing or certify that (1) I was an officer of, or take into account the guidance provided accounting in the jurisdiction, provide, held an equity ownership interest in, by question number 33 in Frequently as to each such license— [name of predecessor firm] immediately Asked Questions Regarding Registration 1. the name of the issuing state, before the transaction described in Item with the Board, PCAOB Release No. agency, board, or other authority; 3.2.a of the Form 4 to which this exhibit 2003–011D (Apr. 28, 2010). 2. the number of the license or is attached; (2) immediately before that 2. Is there identified in Item 3.2.a.2 certification; and transaction [name of predecessor firm] any entity that (i) issued an audit report 3. the date that the authorization was a registered public accounting firm; with respect to an issuer on or after ceased to be effective or became subject (3) as part of that transaction, a majority October 22, 2003 (or, if the entity is a to conditions or contingencies. of the persons who held equity non-U.S. entity, July 19, 2004), while Item 3.2 Acquisitions of, or ownership interests in [name of not registered with the Board, and (ii) Combinations Involving, a Registered predecessor firm] obtained equity did not thereafter have an application Public Accounting Firm ownership interests in, or became for registration on Form 1 approved by employed by, [name of the Firm]; (4) a. If this Form 4 is being submitted in the Board? [name of predecessor firm] intended 3. Is there identified in Item 3.2.a.2 connection with a transaction that [name of the Firm] succeed to the concerning which a person who holds any entity that (i) issued an audit report Board registration status of [name of with respect to a broker or dealer for an equity ownership interest in the predecessor firm] to the extent Firm, or is employed by the Firm, can financial statements with fiscal years permitted by the Board’s rules; and (5) ending after December 31, 2008, while certify the points set out in Item 3.2.b. [name of predecessor firm] is no longer and Exhibit 99.4,— not registered with the Board, and (ii) a public accounting firm. did not thereafter have an application 1. Provide the name of each entity, c. If, in connection with the other than the predecessor firm, that for registration on Form 1 approved by transaction described in Item 3.2.a, the the Board? was involved in the transaction and that Firm has obtained, or will practice was a registered public accounting firm 4. Is the Firm operating without under, a license or certification number, holding any license or certification immediately before the transaction, and authorizing it to engage in the business as to each such entity— issued by a state, agency, board, or other of auditing or accounting, that is authority authorizing the Firm to engage (i) affirm that the entity has filed with different from any such license or the Board a request for leave to in the business of auditing or certification number previously accounting? withdraw from registration on Form 1– reported to the Board by the predecessor Note: If the Firm answers ‘‘yes’’ to any WD; and firm, provide, as to each such license— (ii) state the date that the entity filed 1. the name of the issuing state, question in Item 3.2.e or asserts as to Form 1–WD; agency, board or other authority; any of those questions that non-U.S. law 2. Provide the name of each entity, 2. the number of the license or prohibits it from providing an answer, including any acquiror, that was certification; and the Firm cannot succeed outright to the involved in the transaction and that was 3. the date the license or certification registration of the predecessor. If this not a registered public accounting firm took effect. Form 4 is submitted in accordance with immediately before the transaction; d. If, in connection with the Rule 2109, however, the Firm will 3. Provide the date that the transaction described in Item 3.2.a, any temporarily succeed to the registration transaction took effect; and license or certification that authorized of the predecessor for a transitional 4. Provide a brief description of the the predecessor firm to engage in the period as described in Rule 2108(b)(2) nature of the transaction. business of auditing or accounting has as long as the Firm makes the b. Provide as Exhibit 99.4 to this ceased to be effective or has become representation required in Item 3.2.f Form, a statement in the form set out subject to any conditions or below. If the Firm answers ‘‘yes’’ to any below, signed by a person who, contingencies other than conditions or question in Item 3.2.e or asserts as to immediately before the transaction, was contingencies imposed on all firms any of those questions that non U.S. law an officer of, or held an equity engaged in the business of auditing or prohibits it from providing an answer ownership interest in, the predecessor accounting in the jurisdiction, provide, but fails to make the representation firm and who now either holds an as to each such license— required in Item 3.2.f, this Form 4 will equity ownership interest in, or is 1. the name of the issuing state, not be accepted for filing and the Firm employed by, the Firm. The statement agency, board, or other authority; will not succeed to the predecessor’s must be submitted on behalf of the 2. the number of the license or registration even on a temporary basis. Firm. Exhibit 99.4 must include a certification; and See Rule 2108(b)(2). signature that appears in typed form in 3. the date that the authorization f. If the Firm answered ‘‘yes’’ to any the electronic submission and a ceased to be effective or became subject question in Item 3.2.e or asserts as to corresponding manual signature to conditions or contingencies. any of those questions that non-U.S. law

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prohibits it from providing an answer, subparagraphs (2) through (4) of Rule PART V—CERTIFICATION OF THE affirm, by checking the box 2207(c) if that associated person were a FIRM corresponding to the appropriate item, registered public accounting firm filing Item 5.1 Signature of Partner or a Form 2 and withholding this that one of the following statements is Authorized Officer true— affirmation. This exception to the 1. The Firm has filed an application affirmation in Item 4.1.b. does not This Form must be signed on behalf for registration on Form 1 on or after the relieve the Firm of its obligation to of the Firm by an authorized partner or date provided in Item 3.2.a.3. enforce cooperation and compliance officer of the Firm including, in 2. The Firm intends to file an with Board demands by any such accordance with Rule 2109(d), both a application for Registration on Form 1 associated person as a condition of signature that appears in typed form no later than 45 days after the date continued association with the Firm. within the electronic submission and a provided in Item 3.2.a.3. Note: If the Firm is a foreign corresponding manual signature registered public accounting firm, the retained by the Firm. The signer must PART IV—CONTINUING certify that— OBLIGATIONS affirmations in Item 4.1 that relate to associated persons shall be understood a. the signer is authorized to sign this Item 4.1 Continuing Consent to to encompass every accountant who is Form on behalf of the Firm; Cooperate a proprietor, partner, principal, b. the signer has reviewed this Form; c. based on the signer’s knowledge, shareholder, officer, or manager of the Affirm that— this Form does not contain any untrue Firm and who provided at least ten a. The Firm consents to cooperate in statement of a material fact or omit to hours of audit services for any issuer and comply with any request for state a material fact necessary to make during the reporting period. testimony or the production of the statements made, in light of the documents made by the Board in Item 4.2 Continuing Responsibility to the Board for Previous Conduct Affirm circumstances under which such furtherance of its authority and statements were made, not misleading; that, for purposes of the Board’s responsibilities under the Sarbanes- and authority with respect to registered Oxley Act of 2002; d. either— b. The Firm has secured from each of public accounting firms, including but 1. based on the signer’s knowledge, its associated persons, and agrees to not limited to the authority to require the Firm has not failed to include in this enforce as a condition of each such reporting of information and the Form any information or affirmation person’s continued employment by or authority to impose disciplinary that is required by the instructions to other association with the Firm, a sanctions, the Firm either has retained this Form, with respect to the event or consent indicating that the associated or assumes responsibility for the events being described on this Form, or person consents to cooperate in and conduct of any predecessor registered 2. based on the signer’s knowledge— comply with any request for testimony public accounting firm before the (A) the Firm is a foreign public or the production of documents made change or business combination accounting firm and has not failed to by the Board in furtherance of its reported on this Form took effect. include in this Form any information or authority under the Sarbanes-Oxley Act Note: As used in Item 4.2 the term affirmation that is required by the of 2002, and that the associated person ‘‘predecessor registered public instructions to this Form other than an understands and agrees that such accounting firm,’’ means (1) in affirmation required by Item 4.1 and/or consent is a condition of his or her circumstances not involving a an answer to Item 3.2.e.; and continued employment by or other transaction described in Item 3.2, the (B) the Firm asserts that it is association with the Firm; and predecessor firm and (2) in prohibited by non-U.S. law from c. The Firm understands and agrees circumstances involving a transaction providing any such withheld that cooperation and compliance, as described in Item 3.2, each registered affirmation or response to the Board on described in Item 4.1.a., and the public accounting firm that was this Form and, with respect to each such securing and enforcing of consents from involved in the business combination. withheld affirmation or response, the its associated persons as described in Note: The continuing responsibility in Firm has made the efforts described in Item 4.1.b., is a condition to the Item 4.2 includes, among other things, PCAOB Rule 2207(b) and has in its files continuing effectiveness of the responsibility for reporting information the materials described in PCAOB Rule registration of the Firm with the Board. on Form 2 and events on Form 3. Thus, 2207(c). Note: The affirmation in Item 4.1.b. for example, if a registered public The signature must be accompanied shall not be understood to include an accounting firm experienced a Form 3 by the signer’s title, the capacity in affirmation that the Firm has secured reportable event before the event that is which the signer signed the Form, the such consents from any associated the subject of this Form, the Firm, as date of signature, and the signer’s person that is a registered public successor, has the obligation to report business mailing address, business accounting firm. that event on Form 3, and bears telephone number, business facsimile number, and business email address. Note: The affirmation in Item 4.1.b. responsibility for any failure by any shall not be understood to include an predecessor to have filed a timely Form PART VI—EXHIBITS affirmation that the Firm has secured 3 to report the matter. To the extent applicable under the such consents from any associated Note: The Board’s rules do not require foregoing instructions, each report must person that is a foreign public that any entity retain or assume be accompanied by the following accounting firm in circumstances where responsibility as set forth above. In the exhibits: that associated person asserts that non- absence of an affirmation that it retains Exhibit 99.1 Request for Confidential U.S. law prohibits it from providing the or assumes responsibility for such Treatment consent, so long as the Firm possesses conduct at least for purposes of the Exhibit 99.3 Materials Required by in its files documents relating to the Board’s authority, however, an entity Rule 2207(c)(2)–(4)—Submit Only as associated person’s assertion about non- cannot succeed to the Board registration an Exhibit to an Amended Form 4 in U.S. law that would be sufficient to status of any predecessor entity. See Response to a Request Made Pursuant satisfy the requirements of Rule 2108. to Rule 2207(d)

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Exhibit 99.4 Acknowledgment legislative history notes that this new applicability of the Board’s rules and Concerning Registration Status in authority ‘‘permits [the Board] to write standards to brokers and dealers.’’ 8 Certain Transactions standards for, inspect, investigate, and Commenters also raised a number of Exhibit 99.5 Statement in Support of bring disciplinary actions arising out of, concerns, focusing especially on the Request for Leave To File Form 4 Out any audit of a registered broker or Board’s proposals to: Apply Rule 3523 of Time. dealer.’’ 4 (Tax Services for Persons in Financial * * * * * Reporting Oversight Roles) to the audits On February 28, 2012, the PCAOB of brokers and dealers; amend Rule 5109 II. Board’s Statement of the Purpose of, proposed to update its rules to conform (Rights of Witnesses in Inquiries and and Statutory Basis for, the Proposed them to the Dodd-Frank amendments Investigations) and Rule 5422 Rules and to make certain other updates and (Availability of Documents for In its filing with the Commission, the clarifications.5 The Board received 13 Inspection and Copying); and require Board included statements concerning comment letters: 10 from registered Form 3 special reporting for withdrawn the purpose of, and basis for, the public accounting firms (representing a broker and dealer audit reports proposed rules and discussed any range of large, medium, and small-sized (proposed Form 3, Item 3.2) and issuer comments it received on the proposed firms), two from accounting-auditing auditor changes (proposed Form 3, Item rules. The text of these statements may professional associations, and one from 3.3). be examined at the places specified in an actuary. Commenters generally As described in more detail below, Item IV below. The Board has prepared supported the goal of amending the the Board, after considering comments, summaries, set forth in sections A, B, Board’s rules to conform them to the is adopting the proposed amendments and C below, of the most significant Dodd-Frank Act and to make certain with modifications to address certain of aspects of such statements. In addition, other amendments in light of the the commenters’ concerns. The amendments the PCAOB is the Board is requesting that the 6 Board’s administrative experience. adopting today include specific Commission approve the proposed Commenters said the proposals were rules, pursuant to Section 103(a)(3)(C) of references to audits and auditors of generally consistent with the ‘‘goal of brokers and dealers in the Board’s rules. the Sarbanes-Oxley Act, for application enhancing audit quality for the audits of to audits of emerging growth companies The amendments also conform the brokers and dealers,’’ 7 and would Board’s rules to the Dodd-Frank (‘‘EGCs’’), as that term is defined in ‘‘provide added clarity regarding the Section 3(a)(80) of the Securities amendments that (1) clarified the definition of ‘‘person associated with a Exchange Act of 1934 (‘‘Exchange Act’’). statement that has not yet become effective under public accounting firm,’’ 9 (2) permitted The Board’s request is set forth in the Securities Act of 1933 and that it has not the Board to share certain information section D. withdrawn. 4 with foreign auditor oversight S. Rep. No. 111–176, at 154 (2010). The Dodd- 10 A. Board’s Statement of the Purpose of, Frank amendments to Section 102(a) of the Act also authorities, and (3) clarified that the and Statutory Basis for, the Proposed expanded the Act’s registration requirement by Board’s sanctioning authority is not Rules making it unlawful for any person that is not a limited to persons who are supervisory registered public accounting firm to prepare or personnel at the time a failure to (a) Purpose issue, or to participate in the preparation or supervise sanction is imposed.11 Certain issuance of, any audit report with respect to any Introduction broker or dealer. Even before the Dodd-Frank rules in each section of the Board’s 12 On July 21, 2010, the Dodd-Frank amendments, Section 17(e)(1)(A) of the Exchange rules, except the funding rules, and Act 1 amended various provisions of the Act, as amended by Sarbanes-Oxley in 2002, the rules related to assistance to non- required that the balance sheets and income Sarbanes-Oxley Act of 2002 (‘‘the Dodd- U.S. authorities in inspections and statements filed with the Commission by registered investigations, are affected by these Frank amendments’’) and, among other brokers or dealers be certified by a public 13 things, gave the PCAOB oversight accounting firm registered with the PCAOB. Before conforming amendments. These authority with respect to audits of the Dodd-Frank amendments, however, the sections are: Sarbanes-Oxley Act did not give the PCAOB the Section 1—General Provisions brokers and dealers that are registered authority to inspect, set standards for, or engage in 2 Section 2—Registration and Reporting with the SEC. The Dodd-Frank investigation and enforcement actions with respect Section 3—Professional Standards amendments provided the Board with to registered firms that audit brokers and dealers. (including Auditor Independence) authority to carry out the same types of In July 2013, the SEC adopted amendments to SEC Rule 17a–5 to, among other things, require that Section 4—Inspections oversight programs for audits of brokers broker and dealer audits be conducted in Section 5—Investigations and and dealers that it has carried out with accordance with PCAOB standards and the Adjudications respect to audits of issuers.3 The PCAOB’s attestation standards regarding broker and dealer examinations and reviews. See SEC, Broker- 8 Letter of Grant Thornton LLP (Apr. 30, 2012) 1 Public Law 111–203, 124 Stat. 1376. Dealer Reports, Exchange Act Release No. 70073 (‘‘Grant Thornton Comment Letter’’). (July 30, 2013), 78 FR 51910 (Aug. 21, 2013). 2 Section 110 of the Sarbanes-Oxley Act of 2002 9 See Section 2(a)(9)(C) of the Act. 5 See Proposed Amendments to Conform the (‘‘Sarbanes-Oxley’’ or the ‘‘Act’’), which was added 10 See Section 105(b)(5)(C) of the Act. Board’s Rules and Forms to the Dodd-Frank Act by the Dodd-Frank amendments, incorporates the 11 See Section 105(c)(6)(A) of the Act. and Make Certain Updates and Clarifications, definitions of ‘‘broker’’ in Section 3(a)(4) of the 12 PCAOB Release No. 2012–002 (Feb. 28, 2012). The The Board’s funding rules were addressed in a Securities Exchange Act of 1934 (‘‘Exchange Act’’) separate PCAOB rulemaking. See Final Rules for and ‘‘dealer’’ in Section 3(a)(5) of the Exchange Act, comment period closed on April 30, 2012. 6 Allocation of the Board’s Accounting Support Fee but includes only those brokers or dealers that are See Letter of the Center for Audit Quality (Apr. Among Issuers, Brokers, and Dealers, and Other required to file a balance sheet, income statement, 30, 2012) (‘‘CAQ Comment Letter’’); Letter of Amendments to the Board’s Funding Rules, PCAOB or other financial statement under Section Deloitte & Touche LLP (Apr. 26, 2012) (‘‘D&T Release No. 2011–002 (June 14, 2011). While the 17(e)(1)(A) of the Exchange Act certified by a Comment Letter’’); Letter of Ernst & Young LLP Board is not substantively amending the funding registered public accounting firm. See Section (Apr. 30, 2012) (‘‘EY Comment Letter’’); Letter of rules, the Board is making technical amendments to 110(3) and (4) of the Act. KPMG LLP (Apr. 27, 2012) (‘‘KPMG Comment Rules 7103 and 7104. See infra note 17. 3 As defined in Section 2(a)(7) of the Act, ‘‘issuer’’ Letter’’); Letter of McGladrey & Pullen, LLP (Apr. 13 The Board is not amending the rules in Section means an issuer (as defined in Section 3 of the 27, 2012) (‘‘McGladrey Comment Letter’’); Letter of 6, which state that the Board may provide Exchange Act) the securities of which are registered PricewaterhouseCoopers LLP (Apr. 30, 2012) assistance to non-U.S. authorities in an inspection under Section 12 of the Exchange Act, or that is (‘‘PWC Comment Letter’’). or investigation of a registered public accounting required to file reports under Section 15(d) of the 7 Letter of Crowe Horwath LLP (Apr. 23, 2012) firm, because these rules apply to registered firms Exchange Act, or that files or has filed a registration (‘‘Crowe Horwath Comment Letter’’). that audit brokers and dealers without amendment.

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Ethics Code C. Board’s Statement on Comments on expand the terms to include not only Beyond these conforming the Proposed Rules Received From audits of financial statements under amendments, the PCAOB is adopting Members, Participants or Others PCAOB auditing standards but also three additional categories of The Board released the proposed rule examinations of reports, notices, other amendments that tailor certain of the amendment for public comment in documents, procedures or controls Board’s rules to the audits of brokers PCAOB Release No. 2012–002 (February under PCAOB attestation standards. The and dealers; call for relevant broker and 28, 2012). A copy of Release No. 2012– Board did not receive comment on the dealer audit client information on the 002 and the comment letters received in proposed amendments to the definitions Board’s forms; and amend a number of response to the PCAOB’s request for of ‘‘audit’’ or ‘‘audit report,’’ and the rules in light of the Board’s experience comment are available on the PCAOB’s Board is adopting the amendments to administering and enforcing these rules. Web site at http://www.pcaobus.org/ these definitions as proposed. The First, the PCAOB is tailoring the Rules/Rulemaking/Pages/ amended definitions recognize that Board’s professional practice standards Docket039.aspx. The Board received 13 brokers and dealers are required under to the audits of brokers and dealers. As written comment letters. The Board has SEC rules to file reports prepared and amended, Rule 3521 (Contingent Fees) carefully considered the comment issued by auditors based on an and Rule 3522 (Tax Transactions) apply letters, as discussed below. examination of, among other things, to the audits of brokers and dealers to broker and dealer financial statements the same extent that they previously Section 1—General Provisions and supporting schedules that provide applied to the audits of issuers. In Rule 1001, in Section 1 of the Board’s information regarding a broker-dealer’s contrast, Rule 3523 (Tax Services for rules, contains definitions of terms used net capital, reserves, and other items.18 Persons in Financial Reporting in the Board’s rules. Today’s The terms ‘‘audit’’ and ‘‘audit report’’ in Oversight Roles), Rule 3524 (Audit amendments conform definitions in this the context of SEC Rule 17a–5 apply to Committee Pre-approval of Certain Tax section to the definitions of terms in the reports prepared on a broker’s or Services), and Rule 3525 (Audit Dodd-Frank amendments, including by dealer’s financial statements and Committee Pre-approval of Non-audit amending the terms ‘‘audit services’’ supporting schedules, compliance Services Related to Internal Control and ‘‘other accounting services’’ to report, and exemption report, as well as Over Financial Reporting) will remain implement Section 102(b)(2)(B) of the a supplemental report regarding limited to services provided to issuer Act.14 The amendments also add the Securities Investor Protection audit clients. The Board also is adding new statutory term ‘‘foreign auditor Corporation (‘‘SIPC’’) annual general a definition of ‘‘audit committee’’ so oversight authority’’ to Rule 1001.15 assessment reconciliation or exclusion that Rule 3526 (Communication with Although commenters did not generally from SIPC membership, as applicable.19 Audit Committees Concerning address the proposed amendments to ‘‘Audit Services’’ and ‘‘Other Independence) applies to brokers and Rule 1001, one commenter indicated its Accounting Services’’ (Rule 1001(a)(vii) dealers that may not have organizational general support for these proposals, and (o)(i)). To implement the Dodd- structures that include audit saying they conform to the provisions of Frank amendments to Section committees. the Dodd-Frank Act.16 102(b)(2)(B) of the Act, the Board is Second, the Board is amending its ‘‘Audit’’ and ‘‘Audit Report’’ (Rule amending the terms ‘‘audit services’’ registration, withdrawal, and reporting 1001(a)(v) and (a)(vi)). The PCAOB is and ‘‘other accounting services’’ to forms (Forms 1, 1–WD, 2, 3, and 4), and amending the definitions of ‘‘audit’’ and include services provided by auditors to the general instructions to these forms, ‘‘audit report’’ to conform these terms to broker and dealer audit clients. to call for relevant broker and dealer the statutory definitions the Dodd-Frank Commenters did not address the audit client information. This amendments added to Section 110 of proposed amendments to the definitions information includes, among other the Act.17 The amended definitions of ‘‘audit services’’ or ‘‘other accounting things, information identifying each services’’ and the PCAOB is adopting audit report issued by registered firms 14 As part of a separate rulemaking related to the these definitions as proposed. Because for broker and dealer audit clients Board’s funding rules, the Board adopted firms provide different services to during their annual reporting periods. amendments to Rule 1001 that added definitions of, broker and dealer audit clients than they among other Rule 1001 terms, ‘‘broker,’’ ‘‘dealer,’’ Finally, the Board is amending a and ‘‘self-regulatory organization,’’ which are provide to issuer audit clients, the number of rule provisions and form consistent with the definitions in the Dodd-Frank Board’s definitions are tailored to each items in light of administrative amendments. See PCAOB Release No. 2011–002. category of audit client. As discussed in experience and to make a number of 15 In addition, the Board is reserving Rule more detail in Section VII below, these 1001(n)(i), and renumbering the definitions of updates to address events that have ‘‘party’’ in Rule 1001(p)(iii) and ‘‘secretary’’ in Rule amendments will be used in the context occurred since the last time the rules 1001(s)(iii) to correct technical errors in Rule 1001’s were updated. These amendments, for numbering. In 2011, the Board removed the term Dealers, PCAOB Release No. 2010–008, at n.19 example, conform Rule 4009 (Firm ‘‘notice’’ from Rule 1001 without reserving (Dec. 14, 2010). Today’s amendments make these subparagraph (n)(i). See PCAOB Release No. 2011– notes unnecessary. Similarly, the amendments to Response to Quality Control Defects) to 002, at n.22. Also, prior rule amendments the definitions of ‘‘audit’’ and ‘‘audit report’’ make a rule adopted by the Commission in inadvertently resulted in several unrelated note three accompanying Rule 7104(b) unnecessary, July 2010, and eliminate a hard-copy definitions being assigned the same subparagraph and the Board is removing this note. The Board is submission requirement from Form 1– numbers. also making a technical correction to Rule 7103(c), WD that the Board believes is 16 See Grant Thornton Comment Letter. which should have consistently referred to brokers 17 The Board is also removing the notes and dealers, as well as issuers. unnecessary. accompanying the definitions of ‘‘audit’’ and ‘‘audit 18 See generally, SEC Rule 17a–5 under the (b) Statutory Basis report.’’ The Board added these notes in 2011 to Exchange Act (17 CFR 240.17a–5). make clear that the Board’s enforcement rules 19 See SEC Rule 17a–5(e)(4) and (g). In July 2013, The statutory basis for the proposed encompass the obligations of auditors with respect the SEC adopted amendments to SEC Rule 17a–5 rules is Title I of the Act. to the audits of brokers and dealers. See Temporary to, among other things, strengthen and clarify Rule for an Interim Program of Inspection Related broker and dealer audit and reporting requirements B. Board’s Statement on Burden on to Audits of Brokers and Dealers, PCAOB Release and require that broker and dealer audits be Competition No. 2011–001, at n.32 (June 14, 2011); Proposed conducted in accordance with PCAOB standards. Temporary Rule for an Interim Program of See Broker-Dealer Reports, Exchange Act Release Not applicable. Inspection Related to Audits of Brokers and No. 70073.

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of collecting certain fee information on information with its counterparts in definition in its rules but is not broker and dealer audit clients on Form other countries. included in the statutory definition. 1.20 In the event that a firm has both ‘‘Person Associated with a Public Before the Board adopted Rule issuer and broker and dealer audit Accounting Firm (and Related Terms)’’ 1001(p)(i) in 2003, a number of clients, the fee information will be (Rule 1001(p)(i)). The PCAOB, as commenters suggested that the collected separately for issuer and for proposed, is amending Rule 1001(p)(i), definition should be limited to only a broker and dealer audit clients. (The which defines ‘‘person associated with public accounting firm’s employees. In Board, as discussed below, is not a public accounting firm’’ (and related response, the Board adopted a provision imposing an annual reporting terms), consistent with amended providing that the persons associated requirement with respect to fees for Section 2(a)(9) of the Act. The Board is with a particular public accounting firm services provided to broker and dealer also adding a note to Rule 1001(p)(i) do not include those persons the firm audit clients on Form 2.) 21 highlighting a related amendment to reasonably believes are persons The Rule 1001 term ‘‘audit services,’’ Section 2(a)(9). The note explains that primarily associated with another in the context of broker or dealer audit Section 2(a)(9) has been amended to registered public accounting firm.26 clients, includes professional services make clear that, for purposes of the Experience in administering the rule related to the audit of a broker’s or Board’s investigations and disciplinary after its adoption has shown that, in dealer’s financial statements and proceedings, the defined terms include contexts other than registration and supporting schedules, as described in any person associated, seeking to reporting, this provision, which is not a SEC Rule 17a–5(d)(2),22 as well as the become associated, or formerly part of the statutory definition, may report on a broker’s or dealer’s associated with a public accounting create uncertainty and lead to results compliance report, as described in SEC firm. The note also explains that Section inconsistent with the statutory Rule 17a–5(d)(3), a report on a broker’s 2(a)(9) makes clear that the Board’s definition. By its terms, the statutory or dealer’s exemption report, as authority to conduct an investigation of definition has application without described in SEC Rule 17a–5(d)(4), and any such person applies only with regard to the belief of a firm. a report on the broker’s or dealer’s respect to conduct or omissions that Accordingly, the Board is adding supplemental report on SIPC annual occurred while the person was language to Rule 1001(p)(i) to limit the general assessment reconciliation or associated or seeking to become reasonable belief provision to the exclusion from SIPC membership, as associated with a firm, and that the context of registration and reporting described in SEC Rule 17a–5(e)(4). Board’s authority to commence forms that are completed on behalf of a To the extent a firm’s services and disciplinary proceedings or impose firm pursuant to Section 2 of the Board’s particular fees may overlap these fee sanctions against any such person rules, thus making clear that this categories, the firm must attribute the applies only with respect to conduct or provision does not otherwise operate to fees it billed to just one of the fee omissions occurring during such a amend the statutory definition. The categories. Applicants must include period or failures to cooperate with Board did not receive comment on this such fees within the most appropriate investigative demands for testimony, aspect of the proposed amendments to category under the circumstances. As documents, or other information the associated person definition and is discussed in more detail below, the relating to such a period. The legislative adopting it as proposed. Board understands that firms with history of the Dodd-Frank amendments The Board also is amending Rule broker and dealer audit clients have not explains that Congress enacted the 1001(p)(i) by inserting the words ‘‘or revised definition of associated person entity’’ after the words ‘‘independent necessarily maintained billing records ‘‘to make it clear that [the Board] may contractor,’’ and ‘‘or otherwise’’ after in a way that would make precise sanction or discipline persons who ‘‘participates as agent.’’ The phrases ‘‘or reporting according to the fee categories engage in misconduct while associated entity’’ and ‘‘or otherwise’’ are included always possible. For this reason, the with a regulated or supervised entity in the definition of ‘‘Person Associated Board expects that estimates will be even if they are no longer associated with a Public Accounting Firm’’ in required to attribute particular billed with that entity.’’ 24 Section 2(a)(9) of the Act. Two fees to one of the fee categories on Form Commenters asked for guidance commenters suggested that these 1.23 regarding the meaning of ‘‘seeking to amendments may raise interpretive and ‘‘Foreign Auditor Oversight become associated’’ (as added by the implementation questions.27 The Authority’’ (Rule 1001(f)(iii)). As Dodd-Frank Act).25 The Board believes primary purpose of many definitions proposed, the Board is amending Rule that inclusion of the phrase ‘‘seeking to adopted in 2003 was to narrow terms to 1001 to include the definition of become associated’’ in the Act provides allow auditing firms to complete initial ‘‘foreign auditor oversight authority’’ to the Board with investigative and registration forms with some certainty track the definition in Section 2(a)(17) disciplinary authority over, for example, and in a relatively short period of time. of the Act. The Board did not receive conduct connected with the preparation These rules, however, did not limit or comment on the proposed definition of and filing with the Board of Form 1 contract the Board’s authority under the foreign auditor oversight authority. This (including the form’s contents and all Act. Now that most firms are registered, definition supports the Board’s attachments, exhibits, and it is appropriate for the definition in the authority to share confidential correspondence related to the form) and Board’s rules to reflect the full statutory other applications for registration with 20 See infra notes 151–155 and accompanying the Board. 26 See Registration System for Public Accounting text. The PCAOB is also amending a Firms, PCAOB Release No. 2003–007, at A–3–xii 21 See infra note 177 and accompanying text. provision that the Board included in the (May 6, 2003). See also Frequently Asked Questions 22 ‘‘Audit services’’ covers professional services Regarding Registration with the Board, PCAOB rendered for the audit of a broker’s or dealer’s Release No. 2003–011D, Question and Answer No. financial statements and supporting schedules 24 H.R. Rep. No. 111–687, at 79 (Dec. 16, 2010) 21, available at http://pcaobus.org/Registration/ regarding computation and information required (accompanying H.R. 3817, the Investor Protection Pages/SampleForms.aspx. See generally, comment under SEC Rules 15c3–1 and 15c3–3. The definition Act of 2009). letters available at http://pcaobus.org/Rules/ of ‘‘non-audit services’’ remains unchanged. See 25 See CAQ Comment Letter; D&T Comment Rulemaking/Pages/Docket001Comments.aspx. Rule 1001(n)(ii). Letter; Grant Thornton Comment Letter; KPMG 27 See D&T Comment Letter and EY Comment 23 See infra text accompanying note 156. Comment Letter. Letter.

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meaning of the term. As with other Board. It also contains provisions for Section 3—Professional Standards provisions of the Act, the Board’s annual and special reporting, the Section 3 of the PCAOB’s rules interpretation of this defined term will payment of annual fees, and procedures establish auditing and related be determined based on specific facts to withdraw from registration with the professional practice standards, and circumstances. Board. In addition, Section 2 contains including attestation, quality control, ‘‘Play a Substantial Role in the rules governing a firm’s request for ethics, and independence standards Preparation or Furnishing of an Audit confidential treatment of information applicable to registered public Report’’ (Rule 1001(p)(ii)). As proposed, submitted in registration and reporting accounting firms and their associated the PCAOB is inserting ‘‘broker or forms, as well as requests to omit certain persons. In light of the enactment of the dealer’’ throughout this definition to information on grounds that providing Dodd-Frank Act, the Board proposed the information would violate certain make it clear that the definition extends specific amendments to make Section 3 non-U.S. laws. to audit reports prepared for brokers or applicable to audits of brokers and dealers, as well as issuers. The Board is Most of the amendments the Board is making to this section are to add dealers. also amending this definition to correct Under Section 17 of the Exchange Act ‘‘broker’’ and ‘‘dealer’’ to those rules an error, by replacing the word and SEC Rule 17a–5 thereunder, brokers that formerly applied only to auditors of ‘‘accountant’’ with ‘‘auditor,’’ which is or dealers are generally required, among 28 issuers. Commenters did not address the the more appropriate term. The Board other things, to file with the Board’s proposed amendments to the did not receive comment on the Commission and with the broker’s or proposed amendments to the substantial rules in Section 2, and the Board is adopting the amendments, which are dealer’s designated examining authority role definition. (‘‘DEA’’) an annual report containing ‘‘Professional Standards’’ (Rule briefly described below, as proposed. Application for Registration (Rule audited financial statements, supporting 1001(p)(vi)). The Board is amending the schedules, supplemental reports, and definition of ‘‘professional standards’’ to 2100). Section 102(a) of the Act and Rule 2100 require the registration of all independent public accountant reports, conform to the definition of this term in as applicable.31 Under the amendments 29 public accounting firms that prepare or Section 110 of the Act. Under the to SEC Rule 17a–5, effective for fiscal amended rule, the definition of issue audit reports, or play a substantial role in preparing or furnishing an audit years ending on or after June 1, 2014, professional standards is extended to ‘‘independent public accountant’’ include accounting principles, auditing report, with respect to issuers. The Dodd-Frank amendments extended this reports must be prepared in accordance standards, attestation standards, quality with the standards of the PCAOB.32 control standards, ethics standards and requirement to auditors of brokers and 30 As discussed above, in July 2010, the independence standards relating to the dealers. The Board is revising Rule 2100 to implement these amendments Dodd-Frank amendments gave the audit reports for brokers and dealers, as Board authority to establish, subject to well as issuers. The Board did not with respect to registration. Standard for Approval (Rule 2106(a)). Commission approval, auditing and receive comment on the proposed Rule 2106(a) sets out the standard for related attestation, quality control, amendments to the definition of the Board to consider in determining ethics, and independence standards to professional standards and is adopting whether to approve a firm’s application be used by registered public accounting the definition as proposed. for registration. The rule is based on firms in the preparation and issuance of ‘‘Suspension’’ (Rule 1001(s)(iv)). As Section 101(a) of the Act. The Dodd- the audit reports included in broker and proposed, the PCAOB is amending the Frank amendments broadened Section dealer filings with the Commission. In definition of ‘‘suspension’’ to make it 101(a) to cover broker and dealer audits, September 2010, the Commission issued clear that when the Board imposes a as well as issuer audits. To ensure that interpretive guidance clarifying that the suspension on a registered public Rule 2106(a) continues to track Section ‘‘references in Commission rules and accounting firm, the firm is prohibited 101(a) of the Act, as amended by the staff guidance and in the federal from preparing or issuing, or Dodd-Frank Act, the Board is revising securities laws to generally accepted participating in the preparation or this rule to remove its last clause. auditing standards (‘‘GAAS’’) or to issuance of, any audit report, including Board Action (Rule 2107(d)). The specific standards under GAAS, as they audit reports issued for brokers or Board may order that withdrawal of a relate to non-issuer brokers or dealers, dealers. The Board did not receive firm’s registration be delayed for a should continue to be understood to comment on the proposed amendments period of up to eighteen months under mean’’ the auditing and attestation to the definition of suspension. Rule 2107(d), if it determines that standards established by the American Section 2—Registration and Reporting withdrawal is inconsistent with the Institute of Certified Public Accountants Rules Board’s responsibilities to conduct (the ‘‘AICPA’’), but noted that it inspections or investigations. intended to revisit this interpretation in This section of the PCAOB’s rules sets Specifically, Rule 2107(d)(1) refers to connection with a Commission out the requirements for public ‘‘inspections to assess the degree of rulemaking project to update the audit accounting firms to register with the compliance of each registered public and attestation requirements for brokers accounting firm and associated persons and dealers in light of the Dodd-Frank 28 ‘‘Accountant’’ is defined in Rule 1001(a)(ii) as 33 a natural person who is a CPA, or who holds an of that firm with . . . related matters Act. In June 2011, the Commission accounting degree, or who holds a license or involving issuers.’’ The Board is proposed to amend SEC Rule 17a–5 to certification authorizing him or her to engage in amending this provision to encompass mandate that the rule’s required reports auditing or accounting, or who holds a degree other brokers and dealers to reflect the be prepared in accordance with the than accounting and participates in audits. ‘‘Auditor’’ is defined in Rule 1001(a)(xii) to mean Board’s expanded authority under the both public accounting firms registered with the Dodd-Frank amendments. 31 See Section 17(a) and (e) of the Exchange Act Board and associated persons thereof. The Board is and SEC Rule 17a–5(d). also correcting this error in the notes accompanying 30 Section 17(e)(1)(A) of the Exchange Act 32 See SEC Rule 17a–5(g), as amended. Form 1, Items 2.1 and 2.2. requires every registered broker and dealer to file 33 SEC, Commission Guidance Regarding 29 The amendments also remove, as unnecessary, with the Commission a balance sheet and income Auditing, Attestation, and Related Professional the note accompanying the definition of statement certified by a registered public Practice Standards Related to Brokers and Dealers, ‘‘professional standards.’’ accounting firm. Exchange Act Release No. 62991 (Sep. 24, 2010).

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standards of the PCAOB.34 Finally, in 3300T applies, and the interim enactment, public accounting firms that July 2013, the SEC adopted amendments standards, as applicable and to the were members of the SECPS voluntarily to SEC Rule 17a–5, directing that extent not superseded or amended by committed to satisfying a number of auditors of brokers and dealers are to the Board, must be followed in quality control-related requirements, comply with PCAOB standards effective connection with engagements related to including the quality control for fiscal years ending on or after June the preparation or issuance of audit requirements the Board is adopting 1, 2014.35 As a result, the Board’s reports for brokers and dealers.38 today. The Board notes that only two of auditing, attestation, quality control, Rule 3400T requires, among other the five SECPS membership and independence standards apply to things, that certain registered firms— requirements adopted by the Board audit, attest, and other engagements for firms that were members of the former apply to audits of brokers or dealers. brokers and dealers required by Section SEC Practice Section (‘‘SECPS’’) of the These two requirements relate to 17 of the Exchange Act and SEC Rule AICPA—must comply with certain of continuing professional education 17a–5.36 the SECPS membership requirements requirements for audit firm personnel that existed as of April 16, 2003, to the and the firm communicating through a General Requirements extent not superseded or amended by written statement to its professional Rule 3100 requires registered firms the Board.39 Under the amendments, the personnel the firm’s broad policies and and their associated persons to comply SECPS membership requirements apply procedures related to accounting with all applicable auditing and related to the auditors of brokers and dealers principles, client relationships, and professional practice standards and Rule that were members of the SECPS in services provided.42 The Board notes 3101 explains the meaning of certain 2003. This approach is consistent with that all firms (including those that were terms used in those standards (such as the previous rule (which applied the members of the SECPS in 2003) are ‘‘must’’ and ‘‘should’’) that describe the SECPS membership requirements only required to comply with state and responsibility a PCAOB standard to those registered firms that are former professionally mandated continuing imposes on auditors. Rules 3100 and members of the SECPS). professional education requirements 3101 are applicable to audits of brokers One commenter suggested that Rule that satisfy most, if not all, of these and dealers required by Section 17 of 3400T itself should state that the SECPS education requirements, and expects the Exchange Act and SEC Rule 17a–5. membership requirements apply to that firms distribute such information to Rules 3200T, 3300T and 3400T auditors of brokers and dealers that their professional personnel to generally require registered firms and were members of the SECPS in 2003.40 effectively manage their firms. their associated persons to comply with In response to this comment, the Board Application of these requirements to the AICPA’s auditing, attestation, and has added a note to Rule 3400T to audits of brokers and dealers is therefore quality control standards as in existence clarify that the SECPS membership not expected to result in a significant on April 16, 2003, to the extent not requirements only apply to those firms burden on auditors of brokers or dealers superseded or amended by the Board. that were members of the SECPS in that were members of the SECPS in Rules 3200T and 3300T, as well as 2003. 2003. The Board intends to address the standards adopted by the Board and Another commenter expressed quality control standards more generally approved by the Commission, apply to concern that applying the former SECPS in the future, and to consider whether audit, attest, and other engagements for membership requirements only to firms the substance of any or all of the SECPS brokers and dealers required under that were SECPS members in 2003 membership requirements should be Section 17 of the Exchange Act and SEC could result in an unbalanced and applied to all registered firms.43 Rule 17a–5. disparate application of the Board’s Although some commenters To clarify that Rule 3300T regarding requirements.41 Prior to the Act’s supported the proposals to amend the interim attestation standards applies to Board’s general requirements governing broker or dealer engagements, the Board pursuant to SEC Rule 17a–5. See supra notes 17– the applicability of the Board’s auditing is removing the words ‘‘for issuers’’ 19 and accompanying text. and related professional practice from the phrase in the rule ‘‘audit 38 In related releases issued recently, the PCAOB standards to apply to audits of brokers adopted standards to align its standards more 37 44 reports for issuers.’’ As a result, Rule closely with auditor responsibilities under SEC and dealers, others believed that the Rule 17a–5. AT 1 and AT 2 apply specifically to 34 SEC, Broker-Dealer Reports, Exchange Act the examination of a broker’s or dealer’s compliance 42 See AICPA SEC Practice Section Reference Release No. 64676 (June 15, 2011), 76 FR 57572 report and review of a broker’s or dealer’s Manual, § 1000.08(d) and § 1000.08(l). In addition, (June 27, 2011). exemption report, as required by SEC Rule 17a–5. three SECPS membership requirements adopted by 35 Broker-Dealer Reports, Exchange Act Release See supra note 36. the Board do not apply to audits of non-public No. 70073. 39 See Rule 3400T(b); Establishment of Interim brokers or dealers because they depend in part on 36 In related releases issued recently, the PCAOB Professional Auditing Standards, PCAOB Release the definition of ‘‘SEC registrant’’ in SECPS adopted standards that are tailored to the SEC’s No. 2003–006, at n.15 and accompanying text (Apr. Membership Section 1000.38, which specifically requirements under SEC Rule 17a–5. See Standards 18, 2003). These standards address, among other excludes brokers or dealers that are registered with for Attestation Engagements Related to Broker and topics, training and education, internal the Commission ‘‘only because of section 15 Dealer Compliance and Exemption Report Required communication of broad principles that influence paragraph a of the [Securities Exchange Act of by the U.S. Securities and Exchange Commission the firm’s quality control policies and procedures, 1934].’’ See SECPS Member Section 1000.46 and Related Amendments to PCAOB Standards, notifications to regulators of dismissals and Appendix L, at n.3. These three requirements PCAOB Release No. 2013–007 (Oct. 10, 2013), and resignations from audit engagements, obligations include notification to the Commission of Auditing Standard on Auditing Supplemental with respect to foreign correspondent firms or other resignations and dismissals from engagements with Information Accompanying Audited Financial members of an international firm, and compliance SEC registrants, audit obligations with respect to Statements, PCAOB Release No. 2013–008 (Oct. 10, with auditor independence requirements. Some of correspondent firms or other members of an 2013). These standards must be approved by the these membership requirements do not apply to international association of firms, and certain SEC. broker or dealer audit clients. See infra note 42. quality control procedures regarding compliance 37 As noted above, the Board is amending the 40 See EY Comment Letter. with auditor independence rules. See AICPA SEC definition of ‘‘audit reports’’ in Rule 1001 to 41 See Grant Thornton Comment Letter Practice Section Reference Manual, § 1000.08(m), include auditor examinations of and reports (suggesting that the Board defer the application of § 1000.08(n)(1), and § 1000.08(o). concerning not only financial statements but also the SECPS membership requirements to auditors of 43 See Office of the Chief Auditor, Standard- reports, notices, other documents, procedures or brokers and dealers until the Board has fully Setting Agenda, at 6 (Sep. 30, 2013). controls, such as the auditor reports provided in considered the application of those requirements to 44 See Grant Thornton Comment Letter; Rothstein connection with audits of brokers and dealers all firms). Kass Comment Letter.

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Board’s quality control, ethics, and Quality Review.48 Finally, the Board is The amendment to Section independence rules should not apply to amending the note to Rule 3700(c) to 1000.08(m) of the SECPS Membership the audit and attestation engagements of clarify that nominations to Board Requirements only applies to SEC ‘‘introducing’’ or ‘‘non-carrying’’ brokers advisory groups may be submitted by Registrants that are required to file and dealers, asserting that these brokers any person or organization, including a current reports on Form 8–K. For SEC and dealers are usually smaller entities broker or dealer. Registrants that do not file current that present little if any investment risk Section 1000.08(m) of the SECPS reports on Form 8–K—including foreign to investors or the capital markets.45 Membership Requirements. After private issuers required to make reports Other commenters said that requiring soliciting comment, the PCAOB is on Form 6–K and investment companies auditors of brokers and dealers to follow adopting an amendment to the SECPS required to file reports under Rule PCAOB quality control, ethics, and membership requirement addressing 30b1–1 of the Investment Company Act independence standards is not circumstances where a former SECPS (other than business development warranted until decisions with respect member firm has been the auditor for an companies)—the SECPS reporting to a final, permanent inspection SEC Registrant (as defined in Appendix requirement remains unchanged.52 program’s scope are reached.46 D, SECPS § 1000.38) that is required to Notices for former clients that do not As noted elsewhere, the SEC in July file current reports on Form 8–K and file current reports on Form 8–K are due 2013 determined that all audit reports has resigned, declined to stand for re- by the end of the fifth business day filed with the SEC and DEAs by brokers election, or been dismissed.49 To make following the end of the firm’s and dealers must be prepared in firm notices of these events more determination that the client-auditor accordance with PCAOB standards.47 A meaningful, the Board is requiring that relationship has ended, irrespective of final decision regarding the scope of the registered firms (that are former whether or not the registrant has Board’s inspection program will be members of the SECPS) notify the reported the change in auditors in a made at a later date. The Board believes Commission’s Office of the Chief timely filed report. The PCAOB is also postponing the adoption of amendments Accountant of the cessation of an updating Appendix I of SECPS Section to its rules would not be consistent with auditor’s relationship with an issuer 1000.43 to reflect the SEC’s updated the SEC’s determination under Section audit client only if the issuer has not contact information and preference for 17(e)(2) of the Exchange Act to require reported the end of the relationship to email notifications.53 that audits and attestations of broker the SEC in a timely filed Form 8–K.50 Commenters generally supported and dealer reports filed under SEC Rule Previously, these firm notices were reporting circumstances where a former 17a–5 be made in accordance with required irrespective of whether or not SECPS member firm has resigned, standards of the PCAOB. The Board is the registrant reported the fact that the declined to stand for re-election, or been not persuaded that removing doubt relationship ceased in a timely filed dismissed from an issuer engagement about which rules and standards apply Form 8–K. As amended, if, by the end under Section 1000.08(m) only if the to these audits should be delayed of the fifth business day after an issuer issuer has not reported the end of the pending determinations on the scope of client-auditor relationship has ended relationship in a timely filed report the Board’s final inspection program. the issuer has not reported the cessation (exception reporting).54 But one The Board also is amending the rules of the relationship to the SEC in a commenter suggested that Section in Section 3 to remove outdated and timely filed Form 8–K, then a former 1000.08(m) should be eliminated currently irrelevant provisions. For SECPS member firm must entirely,55 and one other commenter example, the Board is deleting the notes simultaneously send a written report of said Section 1000.08(m) reporting is to Rules 3200T, 3300T and 3400T that this fact to the former client and email ‘‘working, helpful, and appropriate’’ and addressed the application of standards the report to the SEC’s Office of the should not be amended.56 After during the period from the adoption of Chief Accountant.51 considering these comments, the the Act to the date in 2003 when firms PCAOB has determined that more initially were required to register with 48 A number of commenters pointed out that the focused Section 1000.08(m) reporting the Board. The Board also is deleting proposal to remove subparagraph (1) from Rule Rule 3101(c), which provided relief 3400T(b)’s reference to § 1000.08(n) would have broadened the applicability of that requirement. See former issuer audit client. In situations where a from certain documentation CAQ Comment Letter; Crowe Horwath Comment former issuer audit client has ‘‘gone dark’’ or requirements before November 2004. Letter; Grant Thornton Comment Letter; and KPMG declared bankruptcy, for example, and therefore the The Board is deleting Rule 3201T, Comment Letter. This consequence was not firm believes that the client-auditor relationship has ceased, SECPS § 1000.08(m) requires the firm to which was a temporary and transitional intended, and the Board is not adopting this proposal. See Rule 3400T(b). notify the former client and the SEC’s Office of the rule regarding the application of 49 See AICPA SEC Practice Section Reference Chief Accountant of the end of the issuer client- Auditing Standard No. (‘‘AS’’) 2 and by Manual, § 1000.08(m)(1). If an issuer audit client auditor relationship. its terms expired on July 15, 2005. The has a change in its principal auditor (or an auditor 52 See SECPS § 1000.08(m)(2). Foreign private Board is amending Rule 3400T to upon whom the issuer’s principal auditor expressed issuers are required to report issuer auditor changes reliance in its report regarding a significant on Item 16F of Form 20–F and investment remove the note that addressed subsidiary), within the last two fiscal years or any companies (other than business development application of the SECPS membership subsequent interim period up to and including the companies) are required to report auditor changes requirement for concurring partner date of change, the issuer must provide the required on item 77K of Form N–SAR. reviews, which was superseded by information in Item 4.01 of Form 8–K within four 53 The SEC staff strongly encourages emailing the business days of the change. See Item 304(a) of SECPS report notification to [email protected]. Auditing Standard No. 7, Engagement Regulation S–K; Item 4.01 of Form 8–K. See Appendix I, SECPS § 1000.43. See also http:// 50 See SECPS § 1000.08(m)(1). SECPS www.sec.gov/about/offices/oca/10a1notices.htm 45 See Letter of the AICPA (Apr. 30, 2012) § 1000.08(m) does not apply to the termination of (‘‘The Office of the Chief Accountant strongly (‘‘AICPA Comment Letter’’); Crowe Horwath engagements with broker or dealer audit clients. See encourages sending the SECPS report notification to Comment Letter; KPMG Comment Letter. Appendix D, SECPS § 1000.38(1)(b). Also, under [email protected]. The staff will accept the date 46 See AICPA Comment Letter; Letter of Rule 3400T, the former SECPS membership the email is received as the notification date.’’). WeiserMazars LLP (Apr. 30, 2012) (‘‘WeiserMazars requirements, including SECPS § 1000.08(m), only 54 Crowe Horwath Comment Letter; EY Comment Comment Letter’’). apply to firms that were SECPS members in 2003. Letter; Grant Thornton Comment Letter; McGladrey 47 See SEC Rule 17a–5(g); see also Broker-Dealer 51 SECPS § 1000.08(m) also applies to situations Comment Letter; PWC Comment Letter. Reports, Exchange Act Release No. 70073, at where a firm (that is a former member of the SECPS) 55 KPMG Comment Letter. nn.330–347 and accompanying text. believes it no longer has a relationship with a 56 D&T Comment Letter.

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will enhance the SEC’s ability to making a technical amendment to Rule the term means those persons who monitor the cessation of auditors’ 3600T(b) to delete a reference to oversee the accounting and financial relationships with issuers that are Independence Standards Board reporting processes of the entity and the required to file reports on Form 8–K. Standard No. 1, which was superseded audits of the entity’s financial The Board, as discussed in more detail by Rule 3526.61 statements.65 As a result, if a broker or below, has also determined to adopt Subsequent to the adoption of Rules dealer audit client (or potential client) amendments requiring all registered 3500T and 3600T, the Board added does not have an audit committee or a firms to report the cessation of issuer definitions and general rules related to board of directors, the auditor must relationships with Form 8–K filers on ethics and auditor independence, rules provide Rule 3526 communications to Form 3.57 that prohibit contingent fee persons overseeing the broker’s or arrangements for any services a Auditor Independence dealer’s accounting and financial registered public accounting firm may reporting processes and its audits. Registered public accounting firms provide to its audit clients, rules that must follow not only the Commission’s restrict certain types of tax services that The amended definition does not auditor independence requirements 58 may be provided to audit clients and to mean that the broker or dealer audit but also, to the extent applicable, the persons in a ‘‘financial reporting client or potential client has to formally ethics and auditor independence oversight role’’ at an issuer audit client, designate persons who oversee the requirements in Rules 3520 through rules related to issuer audit committee client’s accounting and financial 3526.59 pre-approval of tax services and services reporting processes and audits. Instead, In 2003, the Board adopted Rules related to internal control over financial auditors are expected to use their 3500T and 3600T, which require reporting, and rules related to judgment to identify senior persons at registered public accounting firms to communications with issuers’ audit the client or potential client that have adhere to ethics and independence committees concerning auditor decision-making authority and standards described in the AICPA’s independence.62 The areas covered by responsibility for these functions. For an Code of Professional Conduct Rules 102 these rules, and the Board’s application owner-managed entity, for example, the and 101 and the interpretations and of each rule to audits of brokers and person overseeing the accounting and rulings thereunder, as in existence on dealers, are discussed below.63 financial reporting processes, and April 16, 2003 to the extent not Definitions (Rule 3501). This rule audits, could be the owner. Under a superseded or amended by the Board, contains definitions of nine terms used limited partnership, that person could and to certain standards and in the Board’s auditor independence be the managing or general partner interpretations of the Independence rules. responsible for preparation of the Standards Board. The Board is adding a definition of financial statements and oversight of the To simplify the Board’s rules, and to ‘‘audit committee’’ to Rule 3501 in order partnership’s audits. conform to Section 103(a)(1) of the Act to facilitate the application of Rule One commenter supported amending as revised by the Dodd-Frank 3526, Communications with Audit the definition of ‘‘audit committee’’ to amendments, the Board is merging Rule Committees Concerning Independence, 3600T into Rule 3500T. The merger of to brokers and dealers.64 The definition accommodate those brokers and dealers these rules results in the specific auditor generally tracks the definition of ‘‘audit who do not have a formal audit 66 independence rules following the committees’’ in section 2(a)(3) of the committee in place. Another incorporation of the interim Act. The Act essentially defines the commenter said the definition should be independence rules without having to ‘‘audit committee’’ to be the committee aligned with the definition of audit renumber the existing PCAOB auditor of the board of directors established to committee in ISA 260 and AICPA AU independence rules.60 The Board also is oversee the accounting and financial Section 260, which refers to ‘‘the reporting processes of the issuer, and if person(s) with responsibility for 57 See infra notes 183–195 and accompanying there is no such committee then the full overseeing the strategic direction of the text. board of directors. Because the Board entity and obligations related to the 58 See SEC Regulation S–X, Rule 2–01. recognizes that some brokers and accountability of the entity.’’ 67 A third 59 Among other things, the Dodd-Frank commenter recommended adding the amendments clarified the Board’s authority under dealers may not have governance Section 103 of the Act to establish auditor structures that include boards of words ‘‘and controlling’’ to the independence standards to be used by registered directors or audit committees, the accounting and financial reporting public accounting firms in the preparation and amended definition includes a processes identified in the proposed issuance of audit reports, as required by the Act, SEC rules, or ‘‘as may be necessary or appropriate provision indicating that for non- in the public interest or for the protection of issuers, if no audit committee or board 65 The Board adopted essentially the same investors.’’ See Section 103(a)(1) of the Act. of directors (or equivalent body) exists, definition of ‘‘audit committee’’ in its audit 60 Regarding the note following proposed Rule committee communications standard. See Auditing 3500T, one commenter indicated that it would be Standard No. 16, Communications with Audit more restrictive rule is deemed to satisfy the less better for the Board to say that the Board’s Committees, PCAOB Release No. 2012–004 (Aug. restrictive rule. Changing ‘‘do not supersede’’ to independence rules ‘‘supplement’’ the SEC’s 15, 2012). Instead of adopting ‘‘essentially the ‘‘supplement’’ would not enhance this standards, rather than the proposed formulation same’’ definition of audit committees as the audit understanding of the note. Accordingly, the Board (that the Board’s rules ‘‘do not supersede’’ the SEC’s committee communication standard, KPMG stated has determined not to make the change suggested independence rules). See EY Comment Letter. The that the Board should consider using the same by the commenter, and is adopting the note as proposed note, however, was substantially the same definition. The difference between the definitions is proposed. as a note that had followed Rule 3600T. In the that audit committee communication definition 61 proposed note, following the statement that the PCAOB Release No. 2008–003, at 4. uses the term ‘‘company’’ and the definition in Rule Board’s rules ‘‘do not supersede’’ the SEC’s auditor 62 See, e.g., PCAOB Release Nos. 2003–011; 2005– 3501 uses the word ‘‘entity.’’ In both instances, the independence rule, the statement was made that ‘‘to 014; 2005–20; 2007–005A; and 2008–003. defined term is intended to encompass the audit the extent that a provision of the Commission’s rule 63 Regardless of the application of the Board’s committee of the audit client, regardless of the is more restrictive—or less restrictive—than the independence rules, auditors of brokers and dealers client’s legal form of organization. Board’s Interim Independence Standards, a must follow the Commission’s auditor 66 See Rothstein Kass Comment Letter. registered public accounting firm must comply with independence rules as stated in SEC Rule 17a– 67 See EY Comment Letter. Under that definition, the more restrictive rule.’’ The note means that the 5(f)(1). EY said communication would likely be made to less restrictive rule still applies but satisfying the 64 See Rule 3501(a)(v). the CEO or another officer of the broker or dealer.

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audit committee definition to more fully throughout the audit and professional The Board adopted Rule 3522 in 2005 relate to brokers and dealers.68 engagement period. With the change in following a report by the Permanent After consideration of the comments, the definition of ‘‘audit client’’ Sub-committee on Investigations of the the Board, as proposed, is adopting described above, this rule applies to Senate Committee on Governmental essentially the same ‘‘audit committee’’ auditors of brokers and dealers as well Affairs (the ‘‘Subcommittee’’) which definition used in its standard on as to auditors of issuers. To remove any noted that some of the nation’s largest communications with audit committees doubt that this rule applies to auditors accounting firms in the past had sold (AS 16). One of the purposes of defining of brokers and dealers as well as to generic tax products to multiple ‘‘audit committee’’ in Rule 3501 is to auditors of issuers, and to make other corporate and individual clients despite facilitate auditor communications with technical changes, the Board, as evidence that some of those products audit committees regarding auditor proposed, is removing the reference to were potentially abusive or illegal.74 In independence issues and having ‘‘an issuer’’ from note 1 of this rule. The addition, the Internal Revenue Service consistent definitions of the term ‘‘audit Board did not receive comment on the (‘‘IRS’’) and the U.S. Department of committee’’ should promote the proposed amendments to Rule 3520. Justice brought a number of cases efficient implementation of the Board’s Contingent Fees (Rule 3521). This against accounting firms in connection two standards. In light of the AS 16 rule, which is consistent with the SEC’s with those firms’ marketing of tax audit committee definition, adding the auditor independence rules,70 states shelter products and, specifically, those concept of ‘‘controlling’’ to the that a registered public accounting firm firms’ alleged failures to register, or definition, or conforming the definition is not independent if it provides any comply with list maintenance to international standards, would add service or product to the audit client for requirements relating to, their tax unnecessary complexity to the Board’s a contingent fee or a commission, or shelter products. In addition, the IRS rules. receives from the audit client, directly proposed a settlement initiative for Although the Board is not amending or indirectly, a contingent fee or executives and companies that the other definitions in Rule 3501, the commission. With the expanded participated in certain abusive tax meaning of certain definitions is altered interpretation of ‘‘audit client’’ as noted avoidance transactions, at times with because the Board’s rules and standards above, this rule applies to audits of the assistance of the companies’ 75 are now applicable to the audits of brokers and dealers as well as to audits auditors. At the time the initiative was brokers and dealers. For example, Rule of issuers. Because the SEC rule on announced, the IRS Commissioner said 3501(a)(iv) defines ‘‘audit client’’ to contingent fees currently is applicable that ‘‘[t]hese transactions raise[d] mean ‘‘the entity whose financial to audits of brokers and dealers, making questions not only about compliance statements or other information is being the PCAOB rule similarly applicable to with the tax laws, but also, in some audited, reviewed, or attested and those audits should not affect practice instances, about corporate governance 76 affiliates of the audit client.’’ The in this area. and auditor independence.’’ The Government Accountability ‘‘entity’’ referenced in this definition One commenter supported the Office (‘‘GAO’’) also noted concerns includes a broker or dealer, as well as proposed amendments to Rule 3521, an issuer.69 No comments were received about auditors’ involvement in stating that expanding Rule 3521 to marketing abusive tax shelters to public regarding how changes in the include broker and dealer audit clients definitions in the Board’s rules may companies. The GAO reported that 61 to make the rule consistent with current Fortune 500 companies obtained tax alter the applicability of the definitions SEC auditor independence rules should in Rule 3501 to audits of brokers or shelter services from their external have no effect in the broker-dealer auditors during the period 1998 through dealers. practice area and is appropriate.71 No Overall Framework (Rules 3502 and 2003.77 The GAO also noted that the IRS commenters opposed the proposed 3520). Rule 3502 establishes a standard considered some of these ‘‘transactions application of Rule 3521. The Board has of ethical behavior for the conduct of abusive, with tax benefits subject to determined to have this rule apply to persons associated with registered audits of brokers and dealers. public accounting firms, indicating that 74 See Permanent Subcommittee on Investigations these persons shall not take or omit to Tax Transactions (Rule 3522). Under of the Committee on Homeland Security and Governmental Affairs, The Role of Professional take an action knowing, or recklessly this rule, registered public accounting firms are prohibited from providing any Firms in the U.S. Tax Shelter Industry, S. Rep. No. not knowing, that the act or omission 109–54, at 6 (2005). This report was based on a would directly and substantially non-audit service to their audit clients Subcommittee investigation that included hearings, contribute to a violation by the firm of related to the marketing, planning, or in November 2003, in which the Subcommittee elicited testimony that described certain potentially the Act, the rules of the Board, or opining in favor of the tax treatment of transactions that are ‘‘confidential abusive tax shelter products marketed through cold- provisions of the securities laws or 72 call selling techniques by accounting firms and professional standards. This basic ethics transactions’’ under the Internal others. See also U.S. Tax Shelter Industry: The Role rule applies, without amendment, to all Revenue Service’s regulations or of Accountants, Lawyers, and Financial Professionals: Hearings Before the Permanent associated persons in all registered transactions that would be considered ‘‘aggressive tax position transactions.’’ 73 Subcommittee on Investigations of the Senate public accounting firms. Committee on Governmental Affairs, 108th Cong. Rule 3520 sets forth the fundamental (2003). ethical obligation for the accounting 70 See SEC Rule 2–01(c)(5) of Regulation S–X. 75 Announcement 2005–19, 2005–11 I.R.B.1. firm and its associated persons to be 71 See WeiserMazars Comment Letter. 76 IRS News Release, Settlement Offer Extended 72 Rule 3501(c)(i) defines a ‘‘confidential for Executive Stock Option Scheme, IR 2005–17 independent of the firm’s audit client transaction’’ to be a transaction that is offered to a (Feb. 22, 2005), available at http://www.irs.gov/uac/ taxpayer under conditions of confidentiality and for Settlement-Offer-Extended-for-Executive-Stock- 68 See Letter of Chris Barnard, Actuary (Apr. 26, which the taxpayer has paid an advisor a fee. Option-Scheme. The Commissioner also said, ‘‘We 2012). 73 Rule 3522(b) describes an ‘‘aggressive tax believe a new climate under Sarbanes-Oxley, 69 Auditors of brokers and dealers must generally position transaction’’ as a transaction initially together with the tougher independence standards comply with the independence requirements of SEC recommended, directly or indirectly, by the for auditors recently proposed by the Public Rule 2–01 of Regulation S–X. See SEC Rule 17a– registered public accounting firm with a significant Company Accounting Oversight Board make this 5(f)(1); see also Broker-Dealer Reports, Exchange purpose of tax avoidance, unless the proposed tax sort of thing less likely going forward.’’ Id. Act Release No. 70073, at nn.383–391 and treatment is at least more likely than not to be 77 See GAO, Tax Shelters: Provided by External accompanying text. allowable under applicable tax laws. Auditors, GAO–05–171 (2005).

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disallowance under existing law, and Although the Board proposed that audits of non-issuer brokers and dealers. other transactions possibly to have some Rule 3523 similarly apply to the audits The Board is not at this time extending traits of abuse.’’ 78 of non-issuer brokers and dealers, it the requirements of Rule 3523 (and the With the change in meaning of the noted that the auditor independence costs associated with these term ‘‘audit client,’’ as described above, implications of an auditor providing requirements) to audits of non-issuer Rule 3522 applies to audits of brokers such tax services to an officer of a brokers and dealers. Rule 3523’s and dealers. The Board did not receive broker or dealer may not be the same as prohibition on providing tax services to comment on the proposed application of those associated with an auditor a person in a financial reporting Rule 3522 to audits of brokers and providing tax services to an officer of a oversight role is therefore limited to dealers. Accordingly, the amendments public company, and it solicited issuer audit clients. As more the Board is making today result in a comment on whether Rule 3523 should information is gathered on broker and prohibition on a registered public continue to be limited to issuer audit dealer audits through the PCAOB’s accounting firm providing any non- clients. inspections and other oversight audit service related to the marketing, Commenters generally stated that functions, the Board will continue to planning or opining in favor of a tax Rule 3523 should be limited to issuers consider whether providing such tax treatment of a ‘‘confidential transaction’’ or subsidiaries of issuers,82 saying the services for persons in financial or an ‘‘aggressive tax position investing public does not trade on the reporting oversight roles could impair transaction’’ to a broker or dealer audit financial results of brokers and dealers independence and could revisit its client. and that the SEC staff has recognized decision to limit Rule 3523’s application Tax Services for Persons in Financial this difference by noting that non-issuer to issuer audits. Reporting Oversight Roles (Rule 3523). brokers and dealers are not required to Audit Committee Pre-approval of The Board is amending Rule 3523 to comply with certain provisions of SEC Certain Tax Services (Rule 3524). The apply only to issuer audit clients. Rule Rule 2–01 of Regulation S–X.83 Board adopted Rule 3524 to implement 3523 does not apply in audits of brokers Commenters also said the threat that and strengthen the requirement in or dealers unless the broker or dealer is these services would create the Sections 10A(h) and 10A(i) of the an issuer or an affiliate of an issuer appearance of a mutuality of interests Exchange Act, as amended by Section under Rule 3501(a)(ii).79 between the auditor and the individuals 202 of Sarbanes-Oxley, that all non- Rule 3523 prohibits auditors from in a financial reporting oversight role is audit services for an issuer audit client providing any tax service to any person significantly greater for a public ‘‘shall be preapproved by the audit 87 who performs a financial reporting company, where the interests of committee of the issuer.’’ The Dodd- oversight role at an issuer audit client, investors and management’s interests Frank amendments, however, did not or an immediate family member of such typically diverge to a greater degree than extend the Exchange Act’s issuer-audit 84 an individual, unless the person is in in a private company. Finally, committee preapproval requirements to that role solely because (a) he or she is commenters said that applying Rule non-audit services provided to non- a member of the board of directors or a 3523 to audits of brokers and dealers issuer brokers and dealers. In addition, similar management or governing body, could unnecessarily increase costs for the SEC’s independence rules over audit (b) the person has a relationship with an brokers and dealers, many of which are committee administration are applicable affiliated entity that is immaterial to the small businesses, where the owner, only to issuers. As a result, the Board is audit client’s consolidated financial manager, and person providing financial not extending the preapproval 85 requirements in Rule 3524 to broker or statements or that has its financial reporting oversight is the same person. dealer audit clients.88 Commenters statements audited by another auditor, Similarly, some commenters indicated agreed that Rule 3524 should not be or (c) the person was hired or promoted that compliance with the proposal extended to the audits of brokers and into the financial reporting oversight might require some brokers or dealers, that may be organized as limited dealers.89 role and the tax engagement was in Audit Committee Pre-approval of process before the hiring or promotion partnerships or sole proprietorships, to hire a second audit firm to provide Non-audit Services Related to Internal and will be completed within 180 days Control Over Financial Reporting (Rule after the hiring or promotion.80 The rule personal tax services, creating 86 3525). The Board adopted Rule 3525 in addresses the concern that performing inefficiencies. In response to these comments, the connection with the adoption of tax services for certain individuals Auditing Standard No. 5, An Audit of involved in the financial reporting PCAOB has further considered the proposed application of Rule 3523 to Internal Control Over Financial processes of an issuer audit client Reporting That is Integrated with An creates an appearance of a mutuality of Release No. 2008–003, at 15. The rule previously Audit of Financial Statements, in interest between the auditor and those had applied not only to the professional 2007.90 The prior auditing standard, 81 individuals. engagement period but also during the ‘‘audit Auditing Standard No. 2, had required period,’’ which is the period covered by any audit committee pre-approval of 78 financial statements being audited or reviewed. See Id. internal control related non-audit 79 If a non-issuer broker or dealer is an affiliate PCAOB Release No. 2005–14, at 14–15. of an issuer audit client, then the broker or dealer 82 See CAQ Comment Letter; Grant Thornton will be treated in the same manner that any other Comment Letter; McGladrey Comment Letter; 87 PCAOB Release No. 2005–014, at 40, quoting affiliate of the issuer would be treated when KPMG Comment Letter; Letter of Peterson Sullivan Section 10A(i)(1)(A) of the Exchange Act. analyzing the auditor’s independence from the LLP (Apr. 30, 2012); Rothstein Kass Comment 88 Audits of SEC registered brokers and dealers, issuer. Letter. however, remain subject to the SEC auditor 80 PCAOB Release No. 2005–014, at 34–39. 83 See Crowe Horwath Comment Letter. independence rules, including prohibitions on the 81 Id. at 34–35. In 2008, the Board amended this 84 See McGladrey Comment Letter; Rothstein Kass auditor providing certain non-audit services to rule to limit its application to the ‘‘professional Comment Letter. audit clients. See SEC Rule 2–01(c)(4) of Regulation engagement period,’’ which begins when the 85 See CAQ Comment Letter; KPMG Comment S–X. auditor either signs the initial engagement letter or Letter; Rothstein Kass Comment Letter; 89 See Grant Thornton Comment Letter; begins audit procedures, whichever is earlier, and WeiserMazars Comment Letter. McGladrey Comment Letter; Rothstein Kass ends when either the company or the auditor 86 See Crowe Horwath Comment Letter; Rothstein Comment Letter. notifies the Commission that the company is no Kass Comment Letter; WeiserMazars Comment 90 See PCAOB Release No. 2007–005A, at 14–15 longer that auditor’s audit client. See PCAOB Letter. and Appendix 2.

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services.91 With the adoption of compliance report or an exemption senior persons at the broker or dealer Auditing Standard No. 5, this report that are prepared by the broker or who have decision-making authority requirement was moved to Rule 3525. dealer, as well as certain reports that are and responsibility to oversee the Rule 3525 was adopted to facilitate prepared by an independent public accounting and financial reporting implementation of the audit committee accountant covering the financial report processes of the broker or dealer and pre-approval requirements in Section and the compliance report or the audits of the financial statements, and 10A of the Exchange Act and the exemption report.95 The accountant make the required communications to internal control reporting requirements must be independent in accordance those persons. For example, in an in Section 404 Sarbanes-Oxley. As with the Commission’s independence owner-managed broker, the person with noted above, the Dodd-Frank rules in Regulation S–X.96 It is as oversight of financial reporting within amendments did not extend the audit important that those persons the broker could be the owner, and the committee pre-approval requirements in discharging the responsibilities to Rule 3526 communications, therefore, Exchange Act Sections 10A(h) and engage, compensate and oversee an would be made to the owner. When 10A(i) to brokers or dealers. Similarly, independent auditor at a broker or making Rule 3526 communications to the Dodd-Frank amendments did not dealer, as it is for an issuer’s audit the owner, the auditor need not repeat extend the Sarbanes-Oxley Act Section committee, to be advised by the auditor written communications provided to the 404 internal control reporting of any relationships that reasonably may owner throughout the audit process as requirements to brokers or dealers, and be thought to bear on the auditor’s long as the auditor has met all of the the Commission has not extended independence. The Board, therefore, is requirements of Rule 3526, including similar requirements to brokers or making Rule 3526 applicable to audits describing in writing all relationships dealers. Accordingly, the Board has of brokers and dealers. that reasonably may be thought to bear determined that the application of Rule The Board recognizes, however, that on independence, discussing the 3525 should remain limited to services brokers and dealers may have potential effects of those relationships provided to issuer audit clients. organizational structures that do not on the auditor’s independence, and Commenters agreed that Rule 3525 include audit committees. The Board is providing a written affirmation of the should not be extended to audits of non- therefore adding a definition of ‘‘audit firm’s independence. In addition, the 92 issuer brokers and dealers. committee’’ to Rule 3501 that makes auditor may identify others in charge of Communication with Audit Rule 3526 applicable to broker and the broker’s or dealer’s operations and 97 Committees Concerning Independence dealer audit clients. This definition, as performance who may benefit from the (Rule 3526). The Board adopted Rule discussed above, provides that if a Rule 3526 communications and make 3526 to ensure that those making the broker or dealer does not have an audit the communications to those decisions to hire, compensate, and committee or board of directors (or individuals as well as the owner. oversee the work of the auditor have equivalent body) then the required Compliance dates for Rules 3521 information about the auditor’s communications should be made to the through 3526. Commenters indicated independence that could assist them in individuals overseeing the accounting that certain of the proposed performing those responsibilities.93 This and financial reporting processes of the amendments, if adopted, would benefit rule requires that prior to being engaged broker or dealer and audits of the from transition periods. For example, and at least annually thereafter, an financial statements of the broker or one commenter suggested that certain auditor describe in writing to the audit dealer.98 committee all relationships between the One commenter recommended that in services should be allowed to continue registered public accounting firm and a situation in which those charged with provided that the services are completed audit client that may reasonably be governance and management are the on or before the later of October 31 of thought to bear on the firm’s same individuals, the Board should the calendar year in which the SEC independence from the audit client, consider providing some flexibility by approves the Board’s rules, or 10 days discuss with the audit committee the allowing auditor judgment in after the date the SEC approves the 100 potential effects of those relationships determining the nature of the rules. The requests from commenters on independence, affirm annually that communications that should occur in for a prolonged transition period for the the public accounting firm is in these circumstances.99 Under Rule Board’s independence rules focused on compliance with Rule 3520, and 3526, an auditor of a non-issuer broker the time needed for brokers and dealers document the substance of the or dealer with no existing audit to change either auditors or tax discussion with the audit committee.94 committee or board of directors (or consultants in the event of the SEC Rule 17a–5 generally requires equivalent body) is expected to identify application of Rule 3523 to broker and that brokers or dealers registered with dealer audit engagements. Because the the Commission pursuant to Section 15 95 SEC Rule 17a–5(d). Board has determined not to apply of the Exchange Act file with the 96 SEC Rule 17a–5(f)(1). The Commission’s Rules 3523, 3524, or 3525 to audits of Commission annual reports consisting independence requirements include SEC Rule 2–01 non-issuer brokers and dealers, an of a financial report and either a and related interpretations. extended transition period should not 97 One commenter indicated that although be necessary. These amendments will auditors currently document their independence 91 AS 2.33. under GAAS, including brokers and dealers in Rule take effect on June 1, 2014. 92 See Grant Thornton Comment Letter; 3526 would be beneficial as it would require more McGladrey Comment Letter; Rothstein Kass documented evidence of auditor independence. See Section 4—Inspections Comment Letter. WeiserMazars Comment Letter. The rules in this section set out the 93 98 PCAOB Release No. 2008–003, at 3–4. See generally, Section 301 of Sarbanes-Oxley, procedures for the Board’s inspections 94 Rule 3526 requires that the registered public directing the Commission to adopt rules requiring accounting firm describe, in writing, all listed companies’ audit committees to ‘‘be directly of registered public accounting firms. relationships between the registered public responsible for the appointment, compensation, and The Board has adopted a temporary accounting firm, or any affiliates of the firm, and oversight of the work of any registered public rule, Rule 4020T, which sets out an the existing or potential audit client or persons at accounting firm employed by that issuer. . . .’’ See interim inspection program for auditors the audit client in a ‘‘financial reporting oversight also Exchange Act Section 10A(m)(2) and SEC Rule role’’ that reasonably may be thought to bear on the 10A–3(b)(2). auditor’s independence. 99 See Grant Thornton Comment Letter. 100 See D&T Comment Letter.

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of brokers and dealers.101 After it has Board is adopting the amendments as Brokers and Dealers extended the gained knowledge and experience proposed. definition of these three terms to the through the interim program and other Interim Inspection Program Related to rules in this section. This rulemaking sources, the Board in a subsequent Audits of Brokers and Dealers (Rule makes these changes part of the Board’s rulemaking proceeding will propose 4020T). On June 14, 2011, the Board permanent rules. rules for a permanent inspection adopted Rule 4020T, establishing an In addition, the revisions to the program for these firms. interim inspection program relating to definition of ‘‘Person Associated With a The Board is making two technical audits of brokers and dealers.104 Rule Public Accounting Firm’’ in Rule 1001 amendments to the rules in this section. 4020T(b) provided that the definitions apply to all uses of the term in this The first is to revise Rule 4009 to of ‘‘audit,’’ ‘‘audit report,’’ and section, making it clear that the term conform to Rule 140 of the ‘‘professional standards’’ contained in ‘‘associated persons’’ includes formerly Commission’s Regulation P (‘‘Rule the Dodd-Frank Amendments applied to associated persons concerning conduct 140’’),102 which went into effect on Rule 4020T, Rule 3502, Section 5 of the that occurred while they were September 7, 2010, and the second is to rules, and to the definition of associated with a registered public revise Rule 4020T(b) to conform to the ‘‘disciplinary proceeding’’ in Rule accounting firm, as well as persons amendments that the Board is making to 1001(d)(i). Because this rulemaking seeking to become associated with a the definitions of ‘‘audit,’’ ‘‘audit makes these definitions permanently registered public accounting firm. As report,’’ and ‘‘professional standards’’ in applicable to all of the Board’s rules, the stated above, this amendment reflects Rule 1001. Board is deleting the second sentence of the Dodd-Frank amendments’ Firm Response to Quality Control Rule 4020T(b).105 Commenters did not clarification of the Board’s jurisdiction Defects (Rule 4009). Rule 4009 sets out address the Board’s proposed over these individuals. the procedures relating to a firm’s amendments to Rule 4020T and the Some commenters said the proposed submission to the Board to demonstrate Board is adopting the amendments as amendments regarding investigations how the firm has addressed criticisms proposed. and adjudications were not clear, and of, or potential defects in, the firm’s because in some cases they are system of quality control that are Section 5—Investigations and unrelated to the Dodd-Frank described in an inspection report. If the Adjudications amendments, the Board should consider Board determines that the firm has Section 5 of the Board’s rules governs a separate rulemaking effort to consider satisfactorily addressed a criticism or the process of PCAOB investigations these amendments, which could also defect, the portion of the inspection and disciplinary proceedings. The include suggestions for changes to the report discussing that issue remains Board is amending certain rules in this rules in Section 5 based on the nonpublic. If the Board determines that section to conform to the Dodd-Frank experience of persons that have been the the firm has not addressed a criticism or amendments. For many of these rules, subject of inquiries and investigations, defect to the Board’s satisfaction, this is simply a matter of adding and better explain the rationales and however, the portion of the report ‘‘broker’’ and ‘‘dealer’’ to rules in potential impacts of these proposed discussing that issue will be made addition to ‘‘issuer,’’ to reflect the amendments.107 The Board does not public. Section 104(h) of the Act allows Board’s jurisdiction over auditors of agree that a separate rulemaking is the firm to request interim Commission brokers and dealers pursuant to the necessary to address the proposed review if the firm disagrees with the Dodd-Frank amendments. The Board is amendments to Section 5 that are not Board’s determination that the firm has also amending a number of the rules in related to the Dodd-Frank amendments. not satisfactorily addressed a quality this section in light of its experience Many of the proposed amendments to control criticism or defect. administering and enforcing these the rules in Section 5 were technical When a firm seeks Commission rules.106 and the Board did not receive specific review of a negative remediation Many of the rules in this section are comment on them from any commenter. determination by the Board, Rule affected by the amendments the Board Commenters have had an opportunity 4009(d)(3) provides that ‘‘unless is making to the definitions in Rule through this rulemaking to comment on otherwise directed by Commission order 1001. In particular, the changes to the all aspects of the proposed rules. After or rule,’’ (emphasis added) the quality definitions of ‘‘audit,’’ ‘‘audit report,’’ considering the comments, including control findings shall be made public by and ‘‘professional standards’’ make clear some suggestions for making the Board 30 days after the firm formally that the Board’s enforcement rules— amendments to the rules in Section 5 requests Commission review. In July which encompass, among other things, based on commenters’ experiences, the 2010, the Commission adopted Rule the provisions of the securities laws Board is adopting the proposed 140, which provides that a firm’s timely relating to the preparation and issuance amendments with modifications to request for Commission review of a of audit reports and the obligations and address commenters’ concerns, as negative remediation determination liabilities of accountants with respect discussed below. operates as a stay of publication by the thereto—encompass the obligations of Board of the portions of the report at auditors with respect to audit reports for Inquiries and Investigations issue unless and until the Commission brokers and dealers, such as those Testimony of Registered Public either denies the review request or obligations set out in Rule 17a–5. The Accounting Firms and Associated otherwise determines.103 The Board is Board’s Temporary Rule for an Interim Persons in Investigations (Rule 5102). making an amendment to Rule Inspection Program for the Audits of Adopted pursuant to Section 4009(d)(3) to conform to Rule 140’s stay 105(b)(2)(A) of the Act, Rule 5102 of publication provision. Commenters 104 See PCAOB Release No. 2011–001. establishes Board procedures related to did not address the Board’s proposed 105 As discussed above, the Board is also obtaining and recording the testimony amendments to Rule 4009, and the removing the notes accompanying the definitions of of any registered public accounting firm ‘‘audit,’’ ‘‘audit report,’’ and ‘‘professional standards’’ in Rule 1001. See supra notes 17, 29. or any associated person of such a firm 101 PCAOB Release No. 2011–001. 106 The Board is also making a number of 102 17 CFR 202.140. technical amendments, such as updating cross- 107 See CAQ Comment Letter; KPMG Comment 103 See SEC Rule 140(c)(5), (d), and (e)(4). references, to Rules 5205, 5407, and 5462. Letter; PWC Comment Letter.

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with respect to any matter that the Federal functional regulator and the public accounting firm with respect to Board considers relevant or material to Director of the Federal Housing Finance which it has been empowered by a an investigation. Rule 5102(c)(4) Agency,110 with respect to an audit foreign government to inspect or provides that a registered firm that is report for an institution subject to the otherwise enforce laws, under certain required to provide testimony in a jurisdiction of such regulator; State circumstances. Specifically, the foreign Board examination shall designate one attorneys general in connection with auditor oversight authority must or more persons to testify on its behalf any criminal investigation; and any provide (1) assurances of confidentiality and ‘‘may set forth, for each individual appropriate State regulatory authority. requested by the Board; (2) a description designated, the matters on which the The Dodd-Frank amendments added of its applicable information systems individual will testify.’’ As proposed, two more categories of regulatory and controls; and (3) a description of the the Board is changing the phrase ‘‘may authorities to the list in Section laws and regulations of the foreign set forth’’ to ‘‘shall set forth’’ to ensure 105(b)(5): self-regulatory organizations government of the foreign auditor that, when a firm designates more than and foreign auditor oversight oversight authority that are relevant to one individual to testify on its behalf, authorities. As proposed, the Board is information access. In addition to the firm provides appropriate notice as making conforming amendments to Rule making a determination under Rule to the subject matter of each 5108. The Board’s authority to disclose 5108(a)(2) that sharing the information individual’s testimony. The Board did confidential information (either from with the foreign auditor oversight not receive comment on the proposed investigations or inspections) to self- authority is necessary to accomplish the amendments to Rule 5102. regulatory organizations and foreign purposes of the Act or to protect Requests for Testimony or Production audit oversight authorities is provided investors, the Board must also of Documents from Persons Not by the Act and does not depend upon determine that it is appropriate to share Associated With Registered Public these rule amendments taking effect.111 such information.114 Accounting Firms (Rule 5105). Rule Self-regulatory organization. The One commenter suggested that 5105, adopted under Section Board is adopting Rule 5108(e) to because SROs are private entities the 105(b)(2)(C) of the Act, provides that the conform to the Dodd-Frank amendments Board should take additional steps to Board, and the staff of the Board that permit the Board to share ensure that SROs preserve the designated in a formal order, may issue confidential information with ‘‘a self- confidentiality and privilege of any an accounting board request for the regulatory organization, with respect to information that is transmitted to SROs, testimony of any person, including any an audit report for a broker or dealer for example by requiring, by rule, that client of a registered public accounting that is under the jurisdiction of such SROs enter into a memorandum of firm, provided certain procedural self-regulatory organization.’’ 112 understanding with the Board before requirements are satisfied. If not a Foreign auditor oversight authority. receiving confidential and privileged natural person, the person to be The Board is adopting Rule 5108(f) to information from the Board.115 Unlike examined must designate a conform to the Dodd-Frank amendments foreign auditor oversight authorities, representative or representatives to that allow greater Board cooperation Congress did not impose a requirement testify on the person’s behalf.108 The with certain foreign regulators. The that the Board seek assurances of Board is amending Rule 5105, as Dodd-Frank amendments allow the confidentiality from SROs or take other proposed, to make the rule’s provisions Board to share confidential information steps to determine that it is appropriate applicable to brokers and dealers. The with ‘‘foreign auditor oversight to share confidential information with amendments to Rule 5105 also require authorities,’’ as the Board defined in SROs.116 Instead, the Act itself instructs that entities set forth the matters on Rule 1001.113 Rule 5108(f) tracks the SROs to ‘‘maintain such information as 117 which their designated representatives Dodd-Frank amendments that allow the confidential and privileged.’’ The will testify.109 This amendment tracks Board to share documents with a foreign Board does not believe amending Rule the amendment to Rule 5102(c)(4), auditor oversight authority concerning a 5108 is necessary to maintain the discussed above, and ensures that the confidential and privileged status of this Board receives appropriate notice of the 110 Section 1161(h) of the Housing and Economic information. The Board takes steps to Recovery Act of 2008, Public Law 110–289, 122 subject matter of each designee’s ensure that recipients of this Stat. 2654, 2781 (2008), amended Sarbanes-Oxley to information are aware of the statutory testimony. The Board did not receive authorize the PCAOB to share information gathered comment on the proposed amendments in Board inspections and investigations with the restrictions on information sharing. In to Rule 5105. Director of the Federal Housing Finance Agency the event that the Board discovers that Confidentiality of Investigatory (with respect to audits of institutions within the an SRO makes disclosures that the Federal Housing Finance Agency’s jurisdiction). Board believes are inconsistent with the Records (Rule 5108). Rule 5108(a) The PCAOB is adopting amendments to conform to reflects the Board’s authority, under Section 1161(h) of the Housing and Economic Act, the Act and Rule 5108 allow the Section 105(b)(5) of the Act, to make Recovery Act. See Rule 5108(a)(2)(b). Board the flexibility to decline to supply confidential materials relating to 111 See Section 105(b)(5)(B) and (C) of the Act. information to that SRO or to require The PCAOB is adopting these rule amendments to informal inquiries and formal appropriate assurances of maintain consistency between Sections 105(b)(5) of confidentiality.118 investigations available to the the Act and Rule 5108(a), which the Board Commission and, ‘‘when determined by originally adopted ‘‘principally for purposes of 114 the Board to be necessary to accomplish notice concerning how the Board will comply with See Section 105(b)(5)(C) of the Act. the requirements of Section 105(b)(5) (e.g., by 115 See D&T Comment Letter. With respect to the purposes of the Act or to protect keeping the relevant documents confidential) and foreign auditor oversight authorities, D&T investors,’’ to certain other regulatory that the Board will make appropriate use of its supported inclusion of the statutory safeguards to authorities. The specified regulatory authority to share confidential materials with protect against a breach of confidentiality by the authorities include the Attorney General certain other regulatory authorities.’’ See Rules on foreign authority. Investigations and Adjudications, PCAOB Release 116 Compare Section 105(b)(5)(C)(ii) of the Act, of the United States; the appropriate No. 2003–015, at A2–40 (Sep. 29, 2003). with Section 105(b)(5)(B)(ii) of the Act. 112 The term ‘‘self-regulatory organization’’ 117 See Section 105(b)(5)(B) of the Act. 108 See Rule 5105(a)(2). (‘‘SRO’’) was adopted as a part of the Board’s 118 For these same reasons, the Board does not 109 See Rule 5105(a)(2). The Board is changing the funding rules release. See PCAOB Release No. believe this commenter’s similar suggested phrase ‘‘may set forth’’ in Rule 5105(a)(2) to ‘‘shall 2011–002. revisions to Rule 5112 or Rule 5420 are necessary set forth.’’ 113 See Rule 1001(f)(iii). and declines to make them.

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Statements of Position (Rule 5109). disciplinary proceedings against a supervise. The Board did not receive Rule 5109(d) allows a registered firm or prospective respondent. The process is comment on the proposed amendments associated person that has become not designed to become a miniature to Rule 5200(a)(2) and the Board is involved in an informal inquiry or adjudication that is subject to formal adopting the amendments as proposed. formal investigation to submit a written evidentiary submission requirements. Proceedings Instituted Solely statement to the Board setting forth their Practice today varies across Rule Pursuant to Rule 5200(a)(3). Under Rule position on the subject matter of the 5109(d) submissions and sometimes 5200(a)(3), the Board may institute investigation. The Board proposed to within a submission. Some submissions disciplinary proceedings when ‘‘it add an explanatory note to Rule are amply supported; others are appears to the Board that a hearing is 5109(d), that would have indicated that, unsupported or only partially warranted pursuant to Rule 5110.’’ Rule in considering factual assertions in a supported. Additionally, in some 5110 states that the Board may institute statement of position, the Board will instances, assertions in a submission a proceeding pursuant to Rule consider whether those factual appear to contradict evidence in the 5200(a)(3) for noncooperation with a assertions are supported by evidence, investigative record. The Board’s goal in Board investigation. A number of such as evidence in the investigative proposing the explanatory note was provisions in the Board rules are record, or by an affidavit or declaration simply to make prospective respondents intended to expedite disciplinary by an individual with knowledge of the aware (or remind them) that if their proceedings of this type. Based on its asserted facts. The proposed note was statements of position assert new facts, experience with these rules in practice, designed to encourage associated or make factual assertions that the Board is making amendments so that persons and registered firms to provide contradict evidence already in the these special procedures do not the Board with appropriate information investigative record, those assertions are automatically apply in cases involving that would further assist the Board in likely to be given more weight by the both non-cooperation and other charges. evaluating statements of position. Division and the Board if they are First, the Board is eliminating the Several commenters said the supported by evidence. Supportive Rule 5201(b)(3)(ii) requirement that the proposed explanatory note could evidence could include evidence that is Board specify a hearing date in every suggest that arguments made in already in the investigative record. A order instituting proceedings (‘‘OIP’’) for statements of position that were not proposed respondent could also, for alleged noncooperation with an supported by formal affidavits or example, submit an affidavit, investigation. Rule 5200(b)(12) requires declarations would be discounted by the declaration, or similar statement signed a hearing officer to obtain Board Board, which they said would place by an individual who claims to have approval before changing any hearing disproportionate weight on formal knowledge of the asserted facts. date set by Board order. These two rules evidentiary submissions at an early Board Referrals of Investigations (Rule combine to restrict the hearing officer’s stage of an inquiry or investigation and 5112). Rule 5112(b) provides that the discretion in a way that is not necessary potentially harm the Board’s process of Board may refer any investigation to the in every noncooperation case. The 119 obtaining evidence. Two commenters Commission, and to any other Federal Board retains the discretion to include said that the proposing release did not functional regulator. The Dodd-Frank hearing dates or deadlines in any OIP. Second, the Board is amending the provide a clear rationale for this amendments gave the Board authority to 120 following rules by adding the word proposed amendment. refer any investigation to a self- ‘‘solely’’ to make it clear that certain In light of the concerns expressed by regulatory organization when the shorter deadlines and more abbreviated commenters, the Board is not adopting investigation concerns an audit report procedural requirements apply only to the proposed explanatory note. The for a broker or dealer that is under the proceedings brought exclusively for Board did not intend to suggest that jurisdiction of such organization. The formal evidentiary submissions would alleged noncooperation: Rules 5110(b); Board is adding subparagraph (2) to be required, or that the Division of 5201(b)(3) (and deleting 5201(b)(3)(ii)); Rule 5112(b) to conform to these Enforcement and Investigation’s (‘‘DEI’’ 5204(b)(Note), 5421(b), 5422(a)(2), amendments.122 Other than the or ‘‘Division’’) burden of proof would 5422(d), 5445(b), and 5460(a)(2)(ii). Rule comment discussed above in connection shift as a result of the proposal. The 5421(b), for example, prescribes the with Rule 5108(a), the Board did not purpose of the Rule 5109(d) process is time frame in which parties must receive comment on the proposed to assist the Board in its decision- answer allegations contained in Board amendment to Rule 5112 and is making by providing prospective OIPs. The rule requires parties to file adopting it as proposed.123 respondents with a meaningful answers to Board allegations within 20 opportunity to focus the Board’s Disciplinary Proceedings days for proceedings brought pursuant to Rule 5200(a)(1), Rule 5200(a)(2), or attention on significant issues Commencement of Disciplinary Rule 5500, and within five days for concerning prospective respondents’ Proceedings (Rule 5200(a)(2)). The proceedings brought under Rule characterization of their own conduct, Board is amending Rule 5200(a)(2) to 5200(a)(3). Rule 5421(b) does not and on the legal and policy issues replace the phrase ‘‘the supervisory implicated by the staff’s expressly address, however, which time personnel of such a firm,’’ with ‘‘any recommendation.121 Submissions made frame applies to proceedings brought person who is, or at the time of the under Rule 5109(d) also help the under both Rule 5200(a)(1) and Rule alleged failure reasonably to supervise Board’s Enforcement staff in 5200(a)(3), for example. The was, a supervisory person of such firm.’’ determining whether to pursue a amendments clarify that the rule’s This amendment conforms the rule to recommendation that the Board institute shorter time frame applies only to the Dodd-Frank amendments to Section proceedings brought under, and only 105(c)(6) of the Act concerning the 119 See D&T Comment Letter; Grant Thornton under, Rule 5200(a)(3). Put another way, Comment Letter; KPMG Comment Letter; PWC imposition of sanctions for failure to the amendments clarify that Rule Comment Letter. 5421(b)’s expedited time frame does not 120 See KPMG Comment Letter; PWC Comment 122 The PCAOB is also adopting amendments to Letter. conform to Section 1161(h) of the Housing and apply to a proceeding brought under 121 See PCAOB Release No. 2003–015, at A2–47 Economic Recovery Act. See Rule 5112(b)(3). both Rule 5200(a)(1) and Rule through A2–49. 123 See supra note 118. 5200(a)(3).

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One commenter expressed concern professional standards. Under Rule adopting these amendments as that the proposed amendments that 5300(a)(4), the Board may impose civil proposed.131 would clarify that special expedited money penalties for each such violation. Documents That May Be Withheld procedures only apply to non- This rule, which became effective in From Production (Rule 5422). After cooperation charges could have the 2004, listed specific maximum amounts disciplinary proceedings have been effect of allowing a disagreement over for penalties against natural persons and instituted, Rule 5422(a) provides that what conduct constitutes non- entities. As required by the Debt DEI generally must make available for cooperation to take too long to resolve, Collection Improvement Act of 1996,128 inspection and copying various creating uncertainty.124 The Board’s the SEC adjusts the maximum amounts documents prepared or obtained by the amendments clarify the circumstances of certain penalties under the Act for Division ‘‘in connection with the under which the Board’s special and inflation at least once every four investigation prior to the institution of expedited non-cooperation procedures years.129 As proposed, the Board is the proceedings.’’ Rule 5422(b) lists apply,125 but do not amend the grounds revising Rule 5300(a)(4) to recognize the categories of documents that the under which non-cooperation penalty inflation adjustments, as Division may decline to make available proceedings may be instituted 126 or the published in the Code of Federal for inspection and copying, subject to an substance of the expedited Regulations at 17 CFR Part 201 Subpart overriding obligation not to withhold procedures.127 The time involved in E. In addition, the Board is adding an material exculpatory evidence. The resolving disagreements over what explanatory note at the end of Rule PCAOB has determined to amend Rule conduct constitutes non-cooperation 5300, indicating that the maximum 5422(b) in two respects. should therefore not be affected by these penalty amounts vary depending on the First, under amended Rule amendments. date that the violation occurs, per 17 5422(b)(1)(i), DEI need not make Burden of Proof (Rule 5204). Rule CFR Part 201 Subpart E.130 available for inspection and copying any document prepared by a person retained 5204(a) provides that in any Leave to Participate to Request a Stay disciplinary proceeding instituted by the PCAOB or the PCAOB’s staff to (Rule 5420). Under Rule 5420, an provide services in connection with a pursuant to Rule 5200(a), the interested authorized representative of the SEC, division ‘‘shall bear the burden of PCAOB investigation, disciplinary the United States Department of Justice proceeding, or hearing on disapproval of proving an alleged violation or failure to or any United States Attorney’s Office, supervise by a preponderance of the registration. Documents may be an appropriate state regulatory withheld under Rule 5422(b)(1)(i) only evidence.’’ As proposed, the Board is authority, or any criminal prosecutorial adding a second sentence to Rule 5204 if the document has not been disclosed authority of a state or political to any person other than Board that makes it clear that respondents who subdivision of a state may seek leave to raise affirmative defenses bear the members, Board staff, or persons participate in a pending Board or retained by the Board or Board staff to burden of proving those affirmative disciplinary proceeding to request a stay provide services in connection with a defenses, also by a preponderance of the to protect an ongoing investigation or PCAOB investigation, disciplinary evidence. The addition is consistent proceeding. Consistent with the Dodd- proceeding, or hearing on disapproval of with the general rule that the burden of Frank amendments, the Board is registration. Withholding such proving an affirmative defense rests expanding the list of entities that may documents does not trigger any with the party asserting the defense. seek a stay pursuant to Rule 5420 to procedural requirements under Rule See, e.g., Taylor v. Sturgell, 553 U.S. include self-regulatory organizations, as 5422(c). 880, 907 (2008). defined by Rule 1001(s)(v). This Commenters generally expressed The amendments to Rule 5204 only amendment permits a self-regulatory concern that there is no parallel become relevant if the interested organization to seek a stay of a hearing provision in the SEC’s comparable rule, division has met its burden of proving that is in the public interest or for the which sets forth when the SEC’s an alleged violation by a preponderance protection of investors. Other than the Division of Enforcement may withhold of the evidence. Thus, the amendments comment discussed above in connection a document including when a document clarify that once the interested division with Rule 5108(a), the Board did not ‘‘is an internal memorandum, note or has proved an alleged violation by a receive comment on the proposed writing prepared by a Commission preponderance of the evidence, if the amendments to Rule 5420 and is employee’’ or ‘‘is otherwise attorney respondent raises an affirmative defense work product and will not be offered in to the violation, the respondent bears 128 Public Law 104–134, 110 Stat. 1321–373 evidence.’’ 132 Commenters also the burden of proving the affirmative (codified at 28 U.S.C. 2461 note). contended that this change is not defense by a preponderance of the 129 See SEC, Adjustments to Civil Monetary warranted without a more thorough Penalty Amounts, Securities Act Release No. 8530 evidence. The Board did not receive explanation.133 The PCAOB further comment on the proposed amendments (Feb. 4, 2005); SEC, Adjustments to Civil Monetary Penalty Amounts, Securities Act Release No. 9009 considered this proposal in light of the to Rule 5204 and is adopting these (Feb. 25, 2009); SEC, Adjustments to Civil Monetary comments and determined to adopt it as amendments as proposed. Penalty Amounts, Securities Act Release No. 9387 proposed in most respects.134 Civil Money Penalties (Rule 5300). (Feb. 27, 2013). 130 One commenter said that while it did not have Rule 5300(a) lists the sanctions the 131 a particular objection to the proposed amendment See supra note 118. Board may impose if it finds a registered to Rule 5300, it was not apparent how the SEC can 132 See CAQ Comment Letter; D&T Comment firm or associated person has committed amend the civil penalties established by Congress Letter; EY Comment Letter; Grant Thornton a violation of the Act, rules of the Board, in the Act for the PCAOB, because the Federal Civil Comment Letter; KPMG Comment Letter. the relevant securities laws, or Penalties Inflation Adjustment Act of 1990 133 See CAQ Comment Letter; EY Comment (‘‘FCPIAA’’) applies only to ‘‘agencies’’ of the Letter; KPMG Comment Letter; PWC Comment federal government, and the PCAOB is not a federal Letter. 124 See PWC Comment Letter. agency. See EY Comment Letter. The FCPIAA 134 Commenters also generally asserted that the 125 See Rule 5110(b). encompasses the civil monetary penalties that may addition of the words ‘‘obtained from’’ in proposed 126 See Rule 5110(a). be imposed by the Board because penalties assessed Rule 5422(b)(1)(i) was ambiguous and could have 127 See Rules 5201(b)(3), 5300(b), 5302(d), by the PCAOB are ‘‘enforced’’ by the SEC for implications on the efficiency and fairness of 5421(b), 5422(a)(2), 5422(d), 5445(b), and purposes of the FCPIAA. See Securities Act Release PCAOB proceedings. See CAQ Comment Letter; 5460(a)(2)(ii). No. 9009, at n.5. D&T Comment Letter; EY Comment Letter; and

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This amendment corrects an anomaly The PCAOB’s second amendment, to clear that the rule does not apply to in the prior version of Rule 5422(b)(1)(i), Rule 5422(b)(1)(ii), allows DEI to not prior sworn statements of parties to the under which a document prepared by make available for inspection and proceeding. The Board did not receive the Board or its staff and provided to a copying any document ‘‘accessed from comment on the proposed amendments retained person would not be subject to generally available public sources, such to Rule 5426 and is adopting these disclosure under this subsection, but a as legal research or other subscription amendments as proposed. document prepared by a retained person databases, databases of securities filings, Motions for Summary Disposition and provided to the Board or its staff databases of periodicals, and public (Rule 5427). Rule 5427 provides that the was not covered by this subsection. The Web sites, except to the extent that DEI interested division or respondent may Board believes the applicability of Rule intends to introduce such documents as file motions for summary disposition of 5422(b)(1)(i) should not turn on whether evidence.’’ Documents may be withheld the proceedings. The Board is adding a document was initially prepared by under Rule 5422(b)(1)(ii) only if DEI ‘‘any or all allegations of the order the Board, its staff, or a person retained does not intend to introduce them as instituting proceedings with’’ to both by the Board or its staff. Retained evidence. Withholding such documents Rules 5427(a) and (b) to make it clear persons are required to execute does not trigger any procedural that a motion for partial summary confidentiality agreements as a requirements under Rule 5422(c). disposition may be made by the condition of their retention. Some commenters asserted that interested division and the respondents Additionally, revising Rule 5422(b)(1)(i) documents ‘‘accessed from generally to disciplinary proceedings. This to encompass documents prepared by a available public sources’’ could result in language tracks Rule 250 of the retained person is consistent with the relevant materials not being produced, Commission’s Rules of Practice. The general rule that firms and associated including documents DEI may consider Board did not receive comment on the persons are not required to produce to supportive of its claims or that are proposed amendments to Rule 5427 and the Division documents prepared by exculpatory of a respondent.135 The is adopting these amendments as consultants they have retained to Board does not agree that exculpatory proposed. provide services in connection with an materials can be withheld under this Evidence: Objections and Offers of investigation or disciplinary proceeding. new subsection and is adopting this Proof (Rule 5442). Rule 5442 addresses The Board is also not persuaded that amendment as proposed. Rule objections to the admission or exclusion the lack of a similar specific provision 5422(b)(2) makes clear that material of evidence in a disciplinary in the SEC Rules of Practice counsels exculpatory evidence must always be proceeding. The Board is making a against amending Rule 5422(b)(1)(i), produced even if it could otherwise be technical amendment to Rule 5442(a)(2) since the analogous SEC Rule, Rule 230, withheld under Rule 5422(b)(1).136 The to clarify that exceptions to the hearing officer’s admission or exclusion of Enforcement and Disciplinary PCAOB is adopting this amendment as evidence will not be deemed waived on Proceedings: Availability of Documents proposed because it is concerned that appeal to the Board, if they are raised for Inspection and Copying, is the previous version of Rule 5422 could in proposed findings and conclusions structured differently from PCAOB Rule be misread to require DEI to log any filed in a post-hearing brief or other 5422. For example, under PCAOB Rule legal research or general background submission pursuant to Rule 5445. The 5422(b), as currently written, the research done during the investigation. Board did not receive comment on the Division may withhold from This amendment is not intended to proposed amendments to Rule 5442 and production, pursuant to the ‘‘work relieve DEI of the obligation to make is adopting these amendments as product doctrine,’’ certain documents available any document DEI knows of proposed. prepared by persons retained by the and intends to introduce as evidence, Board Review of Determinations of Board or the Board’s staff in connection and it does not allow DEI to withhold Hearing Officers (Rule 5460). Rule 5460 with an investigation. DEI, however, is a document that contains material sets out the procedures for the Board’s required under Rule 5422(c) to provide exculpatory evidence. review of hearing officer initial a respondent with a log of such Prior Sworn Statements of Nonparty decisions, either on appeal of a party to documents withheld. In contrast, under Witnesses in Lieu of Live Testimony a hearing or on the Board’s own SEC Rule 230(c), the Commission’s (Rule 5426). Rule 5426 allows a party to initiative. Under Rule 5460(a)(2), a party Division of Enforcement is not required make a motion with the Hearing Officer may obtain Board review of an initial to prepare a log of documents that it has to introduce ‘‘a prior, sworn statement decision by filing a timely petition for withheld from production, including of a nonparty witness otherwise review. To be timely, a petition must be documents withheld pursuant to the admissible in the proceeding, in lieu of filed within 10 days of an initial work product doctrine (and work live testimony.’’ The title and decision in a proceeding commenced product documents prepared by subsequent provisions of the rule do under Rule 5200(a)(3) for retained persons), unless a hearing not, however, repeat the rule’s noncooperation, and within 30 days of officer so requires. Thus, in certain limitation to nonparty witnesses. The an initial decision in other proceedings. respects, the amendment to Rule Board is adding ‘‘nonparty’’ before To conform with the clarification to 5422(b)(1)(i), which effectively removes ‘‘witnesses’’ in the title of Rule 5426, Rule 5200(a)(3) discussed above, the the logging requirement for documents and before ‘‘witness’’ in the fourth Board is adding the word ‘‘solely’’ to prepared by persons retained by the sentence of the rule, in order to make it Rule 5460(a)(2)(ii), to make it clear that Board or the Board’s staff in connection the 10-day time period applies only to 135 with an investigation, brings the Board’s See CAQ Comment Letter; D&T Comment proceedings instituted exclusively rules more in line with the Letter; Grant Thornton Comment Letter; KPMG Comment Letter. pursuant to Rule 5200(a)(3). Commission’s rules. 136 The Board also is not persuaded that there is The Board is also adding a note to a risk that DEI would withhold evidence supportive Rule 5460(a) that sets out how the Board KPMG Comment Letter. After considering these of its claim under Rule 5422(b)(1)(ii), since that will determine when service of an comments, the Board has determined that this subsection requires DEI to produce documents it proposed amendment is not necessary and is not intends to introduce as evidence even if the initial decision has occurred, and by revising Rule 5422(b)(1)(i) to add the ‘‘obtained documents were obtained from a generally available extension, when petitions for review are from’’ language. public source. due. For any party that has entered a

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notice of appearance and filed an will consider the comments on this amendments to Form 1 and is adopting electronic mailing address with the issue, as well as all other relevant these amendments as proposed. Board, pursuant to Rule 5401(c), the factors, in determining how the staff Part III amendments. As required by Board deems service to have occurred should continue to exercise that Section 102(b)(2)(A) and (B) of the Act, on the date that the Secretary has discretion going forward. and consistent with the issuer client transmitted the initial decision by information currently required in Part II Registration and Reporting Forms electronic mail to the email address on of Form 1, Part III of Form 1 requires file. The Board is amending PCAOB Forms disclosures about the applicant’s broker Finally, Rule 5460(e) provides that the 1, 1–WD, 2, 3, and 4, the Board’s or dealer audit clients, including the Board may summarily affirm an initial registration, withdrawal, and reporting client’s name, business address, CRD decision, based upon a petition for forms. The amendments revise the number,149 CIK number,150 the date of review. The Board is deleting the phrase forms to call for relevant information the audit report, and disclosures about ‘‘and any response thereto’’ from this relating to a firm’s audits of brokers and the fees billed to broker or dealer audit provision because no Board rule permits dealers. That information includes, clients by the applicant. The disclosures a response to a petition for review. The among other things, information about are divided into four items that closely Board did not receive comment on the audit reports issued by registered firms track the items in Part II of Form 1 proposed amendments to Rule 5460 and for broker and dealer audit clients. The relating to issuer audit clients. Item 3.1 is adopting these amendments as amendments also make a number of covers broker and dealer clients for proposed. changes to the forms in light of which the applicant prepared an audit Presence of accounting experts during administrative experience. Commenters report during the previous year. Item 3.2 investigative testimony. In response to a generally supported the proposed form covers broker and dealer clients for general request for comments about 142 which the applicant prepared an audit other potential changes to the rules in amendments, and the Board is largely adopting the amendments as proposed. report during the current year. Item 3.3 Section 5, several commenters said covers broker and dealer clients for Form 1: Application for Registration. accounting experts should be allowed to which the applicant expects to prepare Under Section 102(b) of the Act and assist counsel during testimony in an audit report during the current year. Rule 2101, public accounting firms appropriate circumstances under Rule Item 3.4 covers broker and dealer clients 137 applying to the Board for registration 5102(c)(3). These commenters for which the applicant played or must complete and file Form 1.143 The asserted that the SEC has permitted this expects to play a substantial role in the Board is amending Form 1 to conform form of assistance since 1985, ‘‘with no audit during the preceding or current with the Dodd-Frank amendments by apparent interference in the SEC’s fact- calendar year if the applicant did not 138 adding ‘‘broker’’ and ‘‘dealer’’ to the finding process,’’ and said that DEI’s prepare or issue and does not expect to Form in appropriate places.144 In ‘‘functional ban’’ on technical assistance prepare or issue audit reports. addition, the amendments require that results in: possible prejudice to counsel Items 3.1 and 3.2 require the same applicants disclose identifying and witnesses during questioning, an information: the broker’s or dealer’s information concerning all brokers or inhibiting effect on DEI’s fullest name, business address, CRD number, dealers for which the applicant has exposition and consideration of the CIK number, the date of the audit report, prepared or issued audit reports during issues, and the appearance that DEI has and the total amount of fees billed for the previous calendar year,145 and for an unfair tactical advantage over the audit services, other accounting 139 which the applicant prepared, or witness in the investigative process. services, and non-audit services.151 One commenter said that the Board expects to prepare or issue, audit reports Because Item 3.3 refers to a future should think of firm monitoring as a during the current calendar year.146 The period, it only requires the broker’s or good idea that facilitates supervisors’ amendments also require applicants to dealer’s name, business address, and ability to determine whether the firm disclose the fees they billed to broker CRD and CIK numbers.152 Item 3.4 should adjust the witness’s work and dealer audit clients.147 The requires disclosure of the broker’s or assignments, provide training, or take amendments also require applicants to dealer’s name, business address, CRD other steps to address shortcomings.140 provide information about any And commenters suggested that the limitations currently in effect, whether 149 A broker’s or dealer’s Central Registration Board should amend its rules to Board-ordered, Commission-ordered, or Depository (‘‘CRD’’) number is a number assigned expressly provide that witnesses’ court-ordered, on association with a by FINRA’s CRD system, a computer system that counsel be permitted the assistance of a registered public accounting firm or on maintains registration information regarding brokers and dealers and their registered personnel. technical consultant during the taking of appearing or practicing before the 150 148 The Commission issues Central Index Key testimony, except in circumstances in Commission. The Board did not (‘‘CIK’’) numbers as unique publicly available which DEI staff determines that it would receive comment on the proposed identifiers and Electronic Data Gathering, Analysis, obstruct the investigation.141 and Retrieval System (‘‘EDGAR’’) access codes. For consistency, and to more easily identify issuers, the The existing Rule 5102 gives the 142 See EY Comment Letter; KPMG Comment Board is also amending Form 1, Items 2.1 through Letter; PWC Comment Letter. Board and the Board’s staff discretion to 2.4 to require issuers’ CIK numbers. 143 See Registration System for Public Accounting allow an accounting expert to be present 151 As discussed above, the Board is amending the Firms, PCAOB Release No. 2003–007 (May 6, 2003). during investigative testimony in terms ‘‘audit services’’ and ‘‘other accounting 144 appropriate circumstances. The Board See, e.g., amended Form 1, Items 5.1, 5.2, 7.1, services’’ to apply to broker and dealer audit and 8.1. The amendments also make a technical clients. See supra note 20 and accompanying text. change to General Instruction 6 of Form 1, to more 152 As proposed, the note to Item 3.3 stated that 137 See CAQ Comment Letter; EY Comment closely conform the instruction to Rule 2300, as an applicant may ‘‘presume’’ it is expected to Letter; KPMG Comment Letter. adopted in 2008. See Rules on Periodic Reporting prepare or issue an audit report for a broker or 138 by Registered Public Accounting Firms, PCAOB See CAQ Comment Letter; EY Comment dealer in certain circumstances, while the notes to Release No. 2008–004, at n.27 and accompanying Letter; KPMG Comment Letter. proposed Items 2.4 and 3.4(d) used the term 139 text (June 10, 2008). See CAQ Comment Letter; KPMG Comment ‘‘conclude’’ in the same context. The Board agrees 145 Letter. Form 1, Item 3.1. with two commenters that using the term 140 See EY Comment Letter. 146 Form 1, Item 3.2 and Item 3.3. ‘‘conclude’’ consistently is preferable, and has 141 See CAQ Comment Letter; EY Comment 147 Form 1, Item 3.1.c–e and Item 3.2.c–e. adopted this change. See CAQ Comment Letter; Letter; KPMG Comment Letter. 148 Form 1, Item 5.1.c–d. KPMG Comment Letter.

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number, CIK number, the name of the Board recognizes that firms with broker amendments add new Items 5.1.c, 5.1.d, public accounting firm that issued or is and dealer audit clients have not and 5.1.e to Form 1. expected to issue the audit report, the necessarily been maintaining billing Part VI amendments. The Board is date or expected date of the audit report, records in a way that readily facilitates also amending Part VI of Form 1, which and the type of substantial role played precise reporting according to the fee requires an applicant to identify by the applicant with respect to the categories in the Act (as the Board has instances in which the applicant’s audit report. defined them), the Board is adopting a issuer audit clients disclosed The Board understands that the fee note to these items that provides that disagreements with the applicant in information in Items 3.1 and 3.2 may estimated amounts may be used in Commission filings. As required by not have been collected historically, and responding to these Items in Form 1, to Section 102(b)(2)(G) of the Act,159 the that public accounting firms may have the extent that these fees have not Board is requiring that an applicant also to put systems in place to track previously been disclosed or otherwise disclose whether, in the preceding or information in these categories. While known to an applicant.156 current calendar year, a broker or dealer the Board understands that many, if not Part V amendments. Item 5.1 of Form audit client disclosed issues with the all, broker or dealer clients are not 1 requires applicants to disclose applicant relating to any matter of subject to the Commission’s existing information about certain types of accounting principles or practices, requirements for issuers to disclose fee criminal, civil, administrative, or financial statement disclosure, auditing information, or Items 2.1 and 2.2 of disciplinary proceedings pending scope or procedure, or compliance with Form 1, where similar fee disclosure is against, or resolved in the preceding five applicable rules of the Commission in a currently required for issuer audit years against, the applicant or any notice filed with the Commission clients, the Dodd-Frank amendments to associated person of the applicant. At pursuant to SEC Rule 17a– Section 102(b)(2)(B) of the Act the time that the PCAOB adopted Form 5(f)(3)(v)(B).160 For each such instance specifically require applicants to 1, there was no history of disciplinary in the preceding or current calendar include disclosure of the annual fees sanctions imposed by the Board. Now year, an applicant is required to disclose received by the firm for ‘‘audit services, that there is a history of Board-imposed the name of the broker or dealer client, other accounting services, and non- bars and suspensions dating back to the broker’s or dealer’s CRD and CIK audit services’’ for each broker or dealer 2005, the Board is adding to Form 1 a numbers, the date of the filing audit client.153 requirement that the applicant disclose containing the notice, and to submit, as The Board expects that the Form 1 fee whether individuals in the firm, or exhibits, copies of identified filings.161 disclosure requirements for broker and contractors of the firm, are subject to Form 1–WD: Request to Withdraw dealer audit clients will not affect most any currently effective Board-imposed from Registration. Under Rule 2107, a registered public accounting firms. First, bar or suspension on being an registered public accounting firm may at all current auditors of broker and dealer associated person of a registered public any time submit to the Board a request clients should already be registered with accounting firm. The implication of for leave to withdraw its registration. A the Board,154 and so will already have collecting this information on Form 1 is request to withdraw must be submitted filed Form 1. Also, going forward the not that a firm’s relationship with such on Form 1–WD. The general Board expects that most new firms will a person would, in and of itself, result instructions to Form 1–WD require not have prepared audit reports for in rejection of the firm’s application, but registered public accounting firms broker or dealer clients during the in some circumstances it may be seeking to withdraw from Board preceding or current calendar year, relevant information that would cause registration to submit an original hard without having been previously the Board to evaluate whether copy of Form 1–WD to the Board, in registered with the Board, and therefore approving the application is consistent addition to submitting the form to the Items 3.1 and 3.2 will generally not with the Board’s responsibility to Board electronically.162 To facilitate the apply to them.155 Finally, because the protect investors and further the public interest.157 In the same vein, the Board Practice. The amended language also encompasses 153 As noted below, the Board is not imposing an also is requiring information about court-ordered injunctions against appearing or annual reporting requirement with respect to fees currently effective prohibitions on practicing before the SEC, some of which have been issued in the past and remain in effect. Although for services provided for broker and dealer audit appearing or practicing before the clients. See text accompanying and following note the vast majority of SEC practice denials or 177. Commission, whether resulting from a suspensions are administrative, some are court- 154 The Dodd-Frank amendments to Section Commission order denying or ordered. A corresponding language change is also 102(a) of the Act expanded the Act’s registration suspending that privilege or from a being made for Form 3, as described below. requirement by making it unlawful for any person 159 Section 102(b)(2)(G) of the Act specifically court-ordered injunction against such requires that an applicant submit as part of its that is not a registered public accounting firm to 158 prepare or issue, or to participate in the preparation appearance or practice. The application for registration ‘‘copies of any periodic or issuance of, any audit report with respect to any or annual disclosure filed by an issuer, broker, or broker or dealer. Even before the Dodd-Frank 156 This means, for example, that if a firm has not dealer with the Commission during the amendments, however, Section 17(e)(1)(A) of the tracked fees billed to broker and dealer audit clients immediately preceding calendar year which Exchange Act, as amended in 2002, required that according to the fee categories as defined by the discloses accounting disagreements between such the balance sheets and income statements filed with Board’s rules, estimated amounts may be used in issuer, broker, or dealer and the firm in connection the Commission by registered brokers or dealers be responding to these items. with an audit report furnished or prepared by the certified by a public accounting firm registered with 157 Among other factors, the PCAOB will consider firm for such issuer, broker, or dealer.’’ the PCAOB. See supra note 4. the nature of the allegations underlying the 160 Form 1, Item 6.4. See SEC Rule 17a– 155 While Items 3.1 and 3.2 will generally not proceeding, and the position at the firm of the 5(f)(3)(v)(B). affect new applicants, some applicants may expect associated person. Form 1 permits firms to address 161 Form 1, Items 6.5 and 6.6. The amendments to issue an audit report for a broker or dealer in the these factors, as well as any other relevant points, require an applicant to identify instances in which current calendar year and may have provided tax in any discussion it provides concerning the the applicant’s broker or dealer audit clients services or other non-audit services to a broker or disclosure. disclosed issues with the applicant in such broker’s dealer client prior to providing audit services to the 158 Because currently effective denials or or dealer’s SEC Rule 17a–5 filings with the broker or dealer client. These applicants are suspensions may have been ordered at any time, not Commission. Therefore, if a broker or dealer did not required to comply with the amended fee disclosure just within the five years preceding an application, disclose an issue in a SEC Rule 17a–5 filing with requirements in Items 3.1 and 3.2 as to these the amended language refers to Commission orders the Commission, the applicant does not need to previously provided tax and other accounting without limiting them to orders issued pursuant to disclose such issue in Form 1. services. current Rule 102(e) of the Commission’s Rules of 162 See Form 1–WD, General Instruction 4.

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process of withdrawal for firms that no performs audit work, or (iv) performs accounting firms disclose in their longer wish to be registered with the interim reviews. Under the annual reports certain information Board, and permit the withdrawal of a amendments, a foreign registered firm concerning each audit report the firm number of firms that have submitted the that has already made this designation issued for a broker or dealer during the form electronically (but have not to the Commission or Board is required reporting period.174 Also, if the firm did submitted original hard copies of the to check a box annually indicating that not issue any broker or dealer audit form), the Board is amending Form 1– the firm has done so and identify the reports during the reporting period, the WD’s general instructions to eliminate name and address of the designated amendments require the firm to disclose the requirement that the form’s original agent.169 A foreign registered firm that the names and identifying information hard copy be submitted to the Board. has not already made a Section for each broker or dealer audit report the Under the amended instructions, firms 106(d)(2) designation is required to firm played a substantial role in are only required to submit Form 1–WD indicate annually whether or not it has preparing or furnishing in the reporting to the Board electronically.163 The performed any of the activities specified period.175 Board did not receive comment on the by Section 106(d)(2) since enactment of proposed amendments to Form 1–WD the Dodd-Frank Act.170 Any foreign Item 4.3 requires a public accounting and is adopting these amendments as public accounting firm that has not firm to disclose in its annual report each proposed. already made a required Section audit report the firm issued for a broker Form 2: Annual Report. Under 106(d)(2) designation to the Commission or dealer during the reporting period. Section 102(d) of the Act and Rule 2200, or Board must do so immediately.171 This amendment requires that the firm registered public accounting firms must One commenter said that the provide the broker’s or dealer’s name, file annual reports with the Board on proposed identification of the name and CRD number, CIK number, and the date Form 2.164 The Board is amending Form address of the designated agent did not of the audit report(s).176 In response to 2 to call for relevant information fairly reflect the Dodd-Frank the Board’s comment request on this concerning a firm’s audits of brokers amendments to Section 106 of the Act issue, commenters generally said that and dealers.165 and would serve no legitimate purpose firms should not be required to report Part III amendments. Part III of Form of the Commission, the Board, or the audit fee information for broker and 2 requires registered firms to annually public readers of Form 2, because dealer audit clients on an ongoing basis disclose information about their issuer- Section 106 confers no rights on persons on Form 2, saying the PCAOB currently related practice. The amendments beyond the SEC and PCAOB.172 The has access to fee information for require that registered firms indicate Board expects that these amendments registered firms and the public interest whether they issued any audit reports will facilitate the Board’s and SEC’s would not be served by making this with respect to any broker or dealer ability to track foreign firm designations information publicly available.177 The during the annual reporting period; 166 and will remind firms that their Section Board agrees and is not imposing an and, if they did not issue any such audit 106(d)(2) designations should be kept annual reporting requirement with reports, to indicate whether they played current. The Act only addresses requests respect to fees for services provided to a substantial role in the preparation or by the Commission or the Board, and broker and dealer audit clients under furnishing of an audit report with these form amendments are intended Form 2. respect to a broker or dealer.167 only to impose a new reporting If a registered public accounting firm The Board is also revising Part III of requirement, not to confer rights on Form 2 to reflect the Dodd-Frank did not issue any broker or dealer audit anyone. reports during the reporting period, but amendment to the Act requiring certain Another commenter said proposed played a substantial role in the foreign public accounting firms to Item 3.3 would only be appropriate if preparation or furnishing of an audit designate to the Commission or the the Board permitted foreign firms to report for a broker or dealer, Item 4.4 Board an agent in the United States decline to provide such information if requires that registered public upon whom may be served any request such firms were unable to do so without accounting firm to disclose, with respect by the Commission or the Board under violating non-U.S. law, asserting to each such broker or dealer, the Section 106 of the Act or upon whom conflicts with non-U.S. law.173 The broker’s or dealer’s name, CRD number, may be served any process, pleading, or Board declines to accept this argument, CIK number, the name of the registered other papers in any action to enforce as it would defeat the purpose of the public accounting firm that issued the Section 106 of the Act.168 This statutory Dodd-Frank amendment to Section audit report(s), and a description of the provision applies to any foreign public 106(d)(2) of the Act. role played by the firm with respect to accounting firm that (i) performs Part IV amendments. Part IV of Form the audit report(s). This information material services upon which another 2 requires firms to disclose information conforms to the information previously registered public accounting firm relies relating to the audit reports the firm in the conduct of an audit or interim issued for each issuer during the review, (ii) issues an audit report, (iii) reporting period, as well as audit reports 174 Form 2, Item 4.3.a. 175 Form 2, Item 4.4. The Board is also amending issued during the period that the firm Form 2, Item 4.1, so that in those circumstances in 163 These amendments apply to firms that did not issue, but played a substantial which the firm must report the date of the firm’s previously submitted an original hard copy of Form role in preparing or furnishing. The issuance of a consent to a previously-issued report 1–WD without submitting the form electronically. amendments require that public (i.e., when a firm’s reports for a particular issuer 164 See Rules on Periodic Reporting by Registered during the reporting period are limited to such Public Accounting Firms, PCAOB Release No. consents), the firm must indicate that the date 2008–004 (June 10, 2008). 169 Form 2, Item 3.3.a. corresponds to such a consent. 165 See, e.g., Form 2, Items 3.1, 7.1, and 7.3. The 170 Form 2, Item 3.3.b. 176 Under the amendments, if a firm were to issue amendments also make a technical change to 171 To make a Section 106(d)(2) designation to the more than one audit report for a broker or dealer General Instruction 7 of Form 2, to more closely Board, firms should submit their designations by audit client during a reporting period, each audit conform the instruction to Rule 2300, as adopted in email to the PCAOB’s Office of the Secretary report for that broker or dealer would be reported 2008. See supra note 144. ([email protected]) and to note ‘‘106(d)(2) separately. 166 Form 2, Item 3.1.d. Designation’’ in the subject line of the email. 177 See CAQ Comment Letter; Crowe Horwath 167 Form 2, Item 3.1.e. 172 See KPMG Comment Letter. Comment Letter; EY Comment Letter; KPMG 168 See Section 106(d)(2) of the Act. 173 See Grant Thornton Comment Letter. Comment Letter; McGladrey Comment Letter.

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required for issuer clients in Item in which an audit report has been change in auditors pursuant to Item 4.01 4.2.a.178 withdrawn, but said that the Board of Form 8–K.188 Part VII amendments. Part VII of should coordinate with the SEC (or Two commenters supported this Form 2 requires firms to report FINRA) in this area, and suggested that proposed reporting requirement.189 Two information about certain types of the SEC establish a process, comparable commenters suggested that the proposed relationships with individuals and to the one in place for issuers, that Form 3 reporting requirement appeared entities that have specified disciplinary would require a broker or dealer to redundant to Section 1000.08(m) of the and other histories. Under the report to the SEC when an auditor has SECPS membership requirements and amendments, firms have to report new withdrawn an audit report or consent encouraged the Board to develop a relationships with individuals and for a broker or dealer, and the Board single solution for reporting auditor entities that were the subject of a Board would require auditor reporting only changes.190 Commenters were also order imposing a disciplinary sanction where the broker or dealer has not concerned about the scope of the or a Commission Rule 102(e) order notified the SEC in accordance with its proposed Form 3 reporting, some of entered within the five years preceding obligations.184 One commenter argued which commenters suggested would be the end of the reporting period, and who that unlike the requirements for issuers, difficult for the auditor to know or provided at least ten hours of audit the proposal would require that would not be relevant in circumstances services for any broker or dealer during withdrawn audit reports be disclosed where the auditor resigns or does not 179 191 the reporting period. Finally, the directly by the auditor potentially stand for reappointment. Finally, one Board is amending Items 7.1, 7.2, and causing the auditor to disclose the commenter said requiring auditors to 7.3 to correct certain cross-references. company’s private information while make a Form 3 filing in these Form 3: Special Report Form. Under jeopardizing the auditor’s ethical circumstances would inappropriately Rule 2203, registered public accounting put auditors in the position of publicly firms must report certain information to responsibilities related to confidentiality.185 Until a coordinated reporting information that has not yet the Board as a special report filed on 192 reporting process is developed, some been reported by the issuer. Form 3. The amendments revise Form 3 The PCAOB has further considered commenters suggested that AU 561, to call for relevant information this proposal in light of the comments Subsequent Discovery of Facts Existing concerning firms’ audits of brokers and and determined to adopt these proposed at the Date of the Auditor’s Report, dealers.180 The amendments also revise amendments largely as proposed. To provides a framework for registered Form 3 to require firms to report ensure that the Board and public are public accounting firms to notify users circumstances where a former issuer made aware of these events, the Board if an audit report is withdrawn.186 audit client does not comply with Item is amending the instructions to Form 3 4.01 of Commission Form 8–K.181 The Board does not believe it is to require firms to file a special report Withdrawn broker and dealer audit necessary at this time to require Form 3 with the Board if a client-auditor reports. Among other events that trigger reporting of withdrawn broker and relationship has ended and the issuer an obligation to file a special report, dealer audit reports because the has not reported the change in auditors firms are required to file Form 3 if they requirement would go beyond current on a Form 8–K.193 Specifically, if a firm have withdrawn an audit report on an SEC notification requirements. The resigns, declines to stand for re- issuer’s financial statements, and the Board may revisit such a proposal in the appointment, or is dismissed from an issuer failed to comply with future once more information is issuer audit engagement, and the issuer Commission reporting requirements gathered through its inspections and does not comply with Item 4.01 of Form (Item 4.02 of SEC Form 8–K) concerning other oversight functions. Firms should 8–K, the firm within 30 days must 182 the matter. The proposed note that AU 561 applies to broker and report on Form 3 the issuer’s name and amendments would have extended the dealer audits. Consistent with that obligation to report withdrawn audit standard, under certain circumstances 188 If an issuer audit client has a change in its reports on Form 3 to firms’ broker and principal auditor (or an auditor upon whom the 183 the auditor should, among other things, dealer audit clients. notify the regulatory agencies having issuer’s principal auditor expressed reliance in its Commenters generally agreed that it is report regarding a significant subsidiary) within 24 jurisdiction over the broker and dealer important for the PCAOB and financial months prior to or in any period subsequent to the audit client that the auditor’s report date of the most recent financial statements, the statement users to be aware of instances should no longer be relied upon.187 issuer must provide the required information in Item 4.01 of Form 8–K within four business days 178 Note 1 to Form 2, Item 4.4 clarifies that if a Issuer auditor changes. The Board is of the change. See Item 304(a) of Regulation S–K; firm identifies a broker or dealer in response to 4.3, adopting amendments to address Item 4.01 of Form 8–K. the firm does not have to respond to Item 4.4. circumstances where an issuer audit 189 See EY Comment Letter; KPMG Comment 179 Form 2, Items 7.1.a and 7.3.a. Consistent with Letter. the previous Form 2 reporting requirements, the client encounters a change in its 190 See CAQ Comment Letter; KPMG Comment amendments capture only relationships that (i) exist principal auditor (or an auditor upon Letter (recommending that the SECPS requirement as of the end of the reporting period, (ii) are with whom the issuer’s principal auditor be eliminated). individuals or entities whose relevant disciplinary expressed reliance in its report 191 See CAQ Comment Letter; Crowe Horwath sanction or Rule 102(e) order was entered within regarding a significant subsidiary) and Comment Letter; KPMG Comment Letter; the five years preceding the end of the reporting McGladrey Comment Letter; PWC Comment Letter. period, and (iii) have not previously been reported the issuer does not comply with the 192 See D&T Comment Letter (suggesting, as an on Forms 1, 2, or 3. Other than the comment Commission’s four business day alternative, that the PCAOB be copied, on a discussed supra in note 148, the Board did not reporting requirement concerning the confidential basis, on the five-day SECPS letter so receive comment on these proposed amendments that the Board could be timely informed of issuer and is adopting them as proposed. auditor changes). 180 184 See, e.g., Form 3, Items 2.5, 2.6, 2.8, 2.9, and See CAQ Comment Letter; D&T Comment 193 Form 3, Item 3.2 is only triggered by an 4.1. The amendments also make a technical change Letter; Grant Thornton Comment Letter; KPMG issuer’s failure to comply with Item 4.01 of SEC to General Instruction 8 of Form 3 to more closely Comment Letter; McGladrey Comment Letter; PWC Form 8–K. This reporting requirement does not conform the instruction to Rule 2300. See supra Comment Letter. apply to foreign private issuers (that are required to note 144. 185 See Grant Thornton Comment Letter. report issuer auditor changes on Item 16F of Form 181 Form 3, Items 2.1–C and 3.2. 186 See CAQ Comment Letter; KPMG Comment 20–F) or investment companies other than business 182 Form 3, Items 2.1 and 3.1. Letter; PWC Comment Letter. development companies (that are required to report 183 Proposed Form 3, Items 2.1–BD and 3.2. 187 See AU § 561.08(b). auditor changes on Item 77K of Form N–SAR).

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CIK number, if any, whether the firm requires firms to disclose information report filing deadline.201 The Board’s resigned, declined to stand for re- about new relationships with persons or staff is reprogramming the Board’s Web- election or was dismissed, and the date entities that are effectively restricted based Registration, Reporting, and thereof.194 from providing auditing services. Special Reporting system. The Together, the amendments to the Specifically, a firm is required to file a amendments to Form 2 will take effect SECPS membership requirements and Form 3 special report if it enters into April 1, 2015. The Board expects that Form 3 establish a reporting system that certain specified relationships with this will provide firms with sufficient begins, for firms that are former individuals or entities that are currently time to collect necessary information. members of the SECPS, with a required subject to (1) a Board disciplinary The amendments to Forms 1, 1–WD, 3, non-public filing with the SEC’s Office sanction suspending or barring an and 4 will take effect July 1, 2014. of the Chief Accountant within five individual from being an associated business days,195 and, if the former person or a registered public accounting Ethics Code audit client is still not in compliance firm, or (2) a Commission order under within 30 days, requires auditors to Rule 102(e) of the Commission’s Rules The Board is amending six of the make an abbreviated public filing on of Practice suspending or denying the Ethics Code’s provisions: EC2, Form 3 with the PCAOB.196 The Board privilege of appearing or practicing ‘‘Definitions;’’ EC4, ‘‘Financial and sees value both in streamlining the before the Commission.198 Consistent Employment Interests;’’ EC5, SECPS membership requirement for with the changes to Item 5.1 of Form 1, ‘‘Investments;’’ EC7, ‘‘Gifts, Form 8–K filers and also, after a period the Board is revising this reporting Reimbursements, Honoraria and Other of time, requiring that the Board and the criteria to encompass persons currently Things of Value;’’ EC8, public receive notice of these changes if subject to any Commission order ‘‘Disqualification;’’ and EC12, ‘‘Post- the issuer still has not satisfied its denying the privilege of, or any court- Employment Restrictions.’’ Several of reporting obligations under Item 4.01 of ordered injunction prohibiting, these amendments conform the Ethics Form 8–K. appearance or practice before the Code with the Board’s authority under Because Form 3 filings are public, and Commission.199 the Dodd-Frank amendments by adding the Board does not anticipate needing as Form 4: Succeeding to Registration the words ‘‘broker’’ and ‘‘dealer’’ to the much information as was proposed, the Status of Predecessor. Under Rules 2108 Ethics Code in appropriate places. Other Board is requiring that a Form 3 filing and 2109, a registered public accounting amendments are more technical in only report the issuer’s name and CIK firm can, in certain circumstances, nature, reflecting the Board’s experience number, whether the firm resigned, succeed to the registration status of a in applying the Ethics Code. The Board declined to stand for re-election or was predecessor registered firm by filing did not receive comment on its dismissed, and the date thereof.197 The Form 4. As proposed, the Board is proposed amendments to the Ethics PCAOB is not persuaded that requiring amending Form 4 to conform with the Code and is adopting these amendments auditors to report information in these Dodd-Frank amendments by adding a as proposed. circumstances ahead of their former new ‘‘yes’’ or ‘‘no’’ question to Item 3.2 clients poses a serious problem. This of Form 4. The amendments require a The Board is amending the note Form 3 reporting requirement is only firm seeking to succeed to the accompanying the definition of 202 triggered in circumstances where a registration status of a predecessor firm ‘‘practice’’ in EC2(f). As part of its former audit client is delinquent in to indicate whether any firm involved in ‘‘revolving-door restrictions,’’ the Ethics publicly reporting the information the transaction underlying the Code restricts Board members and mandated by Item 4.01 of Form 8–K. succession issued an audit report with professional staff from ‘‘practicing’’ Relationships with persons subject to respect to a broker or dealer audit client before the Board, and the Commission a bar or suspension. Form 3 also for financial statements with years with respect to Board-related matters, ending after December 31, 2008 while for one year following termination of 194 See Form 3, Item 2.1–C and Item 3.3. If the not registered with the Board, and did employment or Board membership.203 issuer comes into compliance with an SEC The note accompanying the definition requirement to make a report concerning the matter not thereafter have an application for 200 pursuant to Item 4.01 of Form 8–K during this 30- registration approved by the Board. of ‘‘practice’’ clarifies that participating day period, the firm would not be required to report The Board did not receive comment on in the financial reporting process as the the change in auditors on Form 3. the proposed amendments to Form 4. officer or director of an issuer, or 195 See supra notes 49–57 and accompanying text. Effective date. One firm suggested that participating in an audit of an issuer’s 196 Firms that are not former members of the SECPS are only required to report these events on the effective date of the Form 2 financial statements does not, in and of Form 3. amendments should provide sufficient itself, constitute practice before the 197 As proposed, the Form 3 reporting would have time for firms to collect the necessary Board or the Commission. The also included whether: (i) The firm’s audit report(s) information related to brokers and amendments extend the note to former for either of the past two years contained an adverse dealers prior to the June 30 annual opinion or a disclaimer of opinion, or was qualified Board members and professional staff or modified as to uncertainty, audit scope, or participating in the financial reporting accounting principles; (ii) the former audit client’s 198 Form 3, Items 2.12 and 2.13, and Items 5.1 and 5.2. audit committee (or equivalent body), or board of 201 directors (or equivalent body) recommended or 199 Form 3, Items 2.12 and 2.13, and Items 5.1 and See Grant Thornton Comment Letter. approved the change; and (iii) there were any 5.2. Other than the comment discussed supra in 202 EC2(f) defines the term ‘‘practice’’ to mean disagreements with the former client in the two note 148, the Board did not receive comment on knowingly acting as an agent or attorney for, or most recent fiscal years and any subsequent interim these proposed amendments and is adopting them otherwise representing any other person in any period on any matter of accounting principles or as proposed. formal or informal appearance before the Board or practices, financial statement disclosure, or 200 See Form 4, Item 3.2.e.3. The amendments Commission, or making any oral or written auditing scope or procedure, which, if not resolved, clarify that succession is allowed where a firm was communication on behalf of any other person to, would have caused the firm to make reference to sanctioned for a registration violation but and with an intent to influence, the Board or the subject matter of the disagreements in subsequently was allowed to register with the Commission. connection with its audit report(s). Because the PCAOB. A conforming change is also being made 203 EC12(b)(1). Additionally, former Board Board will be able to assess these additional to Form 4, Item 3.2.e.2. Separately, the amendments members and professional staff may not ‘‘switch categories of information, if necessary, through the also make a technical change to General Instruction sides’’ and work on a particular matter after leaving inspections process or other means, the Board is not 8 of Form 4 to more closely conform the instruction the Board that they personally and substantially adopting these proposals. to Rule 2300. See supra note 144. participated in while at the Board. EC12(b)(2).

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process for, or in an audit of, a broker prospective employment with a PCAOB’s own determinations regarding or dealer.204 registered public accounting firm or implementation of Dodd-Frank’s EC5(d) requires that Board members issuer without first disclosing the provisions or the SEC’s Rule 17a–5 and professional staff annually disclose identity of the prospective employer determinations, these determinations their holdings in securities of issuers, and recusing himself or herself from all may result in additional economic including exchange-traded options and matters directly affecting that consequences. These additional futures. The Board is making technical prospective employer. Because the economic consequences (resulting from amendments to EC5(d) to clarify that Dodd-Frank amendments gave the the PCAOB’s own determinations) are disclosure should be made to the Ethics Board oversight over auditors of brokers separately considered below. Officer, and, to permit flexibility, the and dealers, the Board is amending The baseline the Board uses to amendments allow the Ethics Officer to EC12(a) to require Board members and analyze the economic consequences of prescribe a different date for annual professional staff to disclose these amendments is the determinations disclosure. employment negotiations with brokers Under EC7(b), Board members and made by Congress in 2010 to amend or dealers, in addition to registered Sarbanes-Oxley and by the SEC in July professional staff are generally accounting firms and issuers. prohibited from accepting payment for 2013 to require that audits of brokers or reimbursement of official travel- D. Request to Apply Conforming and dealers are to be conducted in related expenses from any organization. Amendments to Audits of Emerging accordance with the standards of the This prohibition is subject to an Growth Companies PCAOB. To conform to the exception for travel-related expenses The PCAOB is sensitive to the determinations made by Congress and that are in direct connection with an compliance burden incurred by auditors the SEC, the PCAOB’s rules, forms, and employee’s participation in an and other market participants due to its ethics code are being amended to reflect educational forum that is principally regulatory requirements and has the amendments to Sarbanes-Oxley and 206 sponsored by certain tax-exempt attempted in a variety of ways to Rule 17a–5. entities.205 These tax-exempt entities, minimize burdens on affected entities Amendments Involving no PCAOB however, may not be principally funded while also satisfying the objectives of Discretion from one or more public accounting Congress and the SEC. These include firms or issuers. The Board’s the Board’s efforts to tailor its ethics and Because Congress amended Sarbanes- amendments include brokers and auditor independence requirements, in Oxley and the SEC amended Rule 17a– dealers among the categories of entities Rules 3520 through 3526, to the 5, the PCAOB’s action to amend its that may not principally fund these tax- organizational structure of brokers and rules, forms, and ethics code to conform exempt entities. dealers, and, in particular, not at this to these amendments is technical and EC8(a) provides that if a Board time extending to broker and dealer non-substantive. They do not reflect an member or professional staff becomes, audits Rule 3523’s prohibition on exercise of PCAOB discretion. Instead, or reasonably should become, aware of providing tax services to persons in the PCAOB is adopting these facts which would lead a reasonable financial reporting oversight roles. A amendments to implement statutory person to believe that he or she (or his number of other cost-minimization directives and the regulatory directives or her spouse, spousal equivalent, and measures are discussed below. of the SEC. The PCAOB does not expect dependents) may have ‘‘a financial In its proposal, the PCAOB invited that these conforming amendments will interest or other similar relationship’’ commenters to submit comment on all result in any economic consequences, which might affect (or reasonably create aspects of the proposed amendments. beyond reflecting the actions of the appearance of affecting) his or her Several commenters addressed the Congress and the SEC. economic consequences of the proposed independence or objectivity, then he or To reflect the Dodd-Frank amendments in qualitative terms. These she must, at the earliest possible date, amendments, the Board is making disclose such circumstances and facts comments are addressed below. As discussed in the release, the technical conforming revisions, and and recuse himself or herself from including references to audits and further Board functions or activities PCAOB’s objective in adopting today’s amendments is to conform its rules, auditors of brokers and dealers, in rules, involving or affecting the financial ethics code provisions, and Form 1 parts interest or relationship. Because the forms, and ethics code to the Dodd- Frank amendments to Sarbanes-Oxley that formerly applied only to issuers. phrase ‘‘or other similar relationship’’ These amendments include the has not provided sufficient clarity, the and the SEC’s amendments to Rule 17a– 5. In amending the PCAOB’s rules, revisions to: (1) The Rule 1001 Board is replacing it with ‘‘or personal definitions of ‘‘audit,’’ ‘‘audit report,’’ interest.’’ Thus, under the amendments, forms, and ethics code the PCAOB has endeavored to achieve Congress’s and ‘‘foreign auditor oversight authority,’’ EC8’s disclosure and recusal provisions ‘‘other accounting services,’’ ‘‘person apply to ‘‘a financial or personal the SEC’s objectives in a cost-effective manner. associated with a public accounting interest’’ a reasonable person would firm,’’ ‘‘play a substantial role in the believe might affect (or reasonably To the extent that these amendments reflect the statutory requirements of preparation or furnishing of an audit create the appearance of affecting) his or report,’’ ‘‘professional standards,’’ and her independence or objectivity. Dodd-Frank, the PCAOB’s action is technical and non-substantive. It will ‘‘suspension;’’ (2) the Board’s Under EC12(a), Board members and registration and reporting rules (Rule professional staff may not negotiate not result in economic consequences beyond those resulting from Congress’s 2100, Rule 2106, and Rule 2107); (3) certain of the Board’s rules governing 204 The Board is also making a technical determinations. Similarly, to the extent amendment to the note accompanying the that these amendments reflect the SEC’s investigations and adjudications (Rule definition of ‘‘honoraria’’ in EC2(e) to clarify that Rule 17a–5 determinations, the meals provided to all conference participants are PCAOB’s action is housekeeping that 206 The SEC included an economic analysis of its not considered ‘‘honoraria’’ that Board members amendments to Rule 17a-5 in the release issued in and professional staff are prohibited from accepting will not result in separate economic July 2013. See Broker-Dealer Reports, Exchange Act under EC7(a). consequences. However, to the extent Release No. 70073, at nn. 724–870 and 205 See EC7(b)(2)(C). that the amendments reflect the accompanying text.

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5105, Rule 5108,207 Rule 5112, Rule These amendments: (1) Make the Rule the proposed application of the 5200, Rule 5204, and Rule 5420); (4) 1001 definitions of ‘‘audit services’’ and PCAOB’s rules and standards—focusing certain provisions of the Board’s ethics ‘‘other accounting services’’ applicable particularly on the Board’s quality code (EC2(f), EC7(b), and EC12(a)); and to broker and dealer audits; (2) require control, ethics, and independence (5) Parts III, V, VI, VII, and X of Form that auditors of brokers and dealers standards—to audits of ‘‘introducing’’ or 1. These amendments simply reflect the comply with the PCAOB’s rules ‘‘non-carrying’’ brokers and dealers.208 amended statutory and regulatory establishing auditing, attestation, and One commenter asserted that requiring provisions. They are not expected to quality control standards (Rules 3200T, auditors of brokers and dealers to follow result in any economic consequences, 3300T, and 3400T); (3) require that PCAOB quality control, ethics, and beyond reflecting the actions of broker and dealer auditors adhere to independence standards is not Congress and the SEC. certain of the PCAOB’s ethics and warranted until the PCAOB decides the Other technical amendments and non- auditor independence rules (Rules scope and elements of its permanent substantive updates include the 3500T, 3501, 3502, 3520, 3521, 3522, inspection program for broker and 209 revisions to: (1) The Rule 1001 and 3526) but not to others (Rules 3523, dealer audits. Additionally, one definitions of ‘‘party’’ and ‘‘secretary;’’ 3524, and 3525); and (4) tailor certain commenter suggested that Rule 3400T’s (2) Rules 3101, 3201T, and 3600T, (3) Form 1, Form 2, Form 3 and Form 4 application of the requirements of the the Board’s inspections rules (Rule items to call for relevant broker and SEC Practice Section (‘‘SECPS’’) of the 4009, Rule 4020T); (4) certain of the dealer audit client information and American Institute of Certified Public Board’s rules governing investigations implement the Dodd-Frank amendments Accountants only to the auditors of and adjudications (Rule 5102, Rule (Items 3.1 and 3.2 of Form 1, Items 3.1, brokers and dealers that were members 5105, Rule 5110, Rule 5201, Rule 5205, 3.2, 3.3, 4.3, 4.4, 7.1, and 7.3 of Form of the SECPS in 2003 could result in an 2, Items 2.5, 2.6, 2.8, 2.9, and 4.1 of unbalanced and disparate application of Rule 5300, Rule 5407, Rule 5421, Rule 210 5426, Rule 5427, Rule 5442, Rule 5445, Form 3, and Item 3.2.e.3 of Form 4). the Board’s requirements. The PCAOB is also amending some In response to these comments, the Rule 5460, and Rule 5462); (5) Rules rules and form items in light of PCAOB has further considered the 7103 and 7104 of the Board’s funding administrative experience and to make application of the PCAOB’s rules rules; (6) certain provisions of the a number of updates to address recent establishing auditing, attestation, and Board’s ethics code (EC2(e), EC5(d), events. These amendments include the quality control standards to auditors of EC8(a)); and (7) certain Form 1 items revisions to: (1) Rule 5422; (2) Section brokers and dealers. As explained in the (general instruction 6, Item 2.1(e), Item 1000.08(m) of the SEC Practice Section release, the SEC has decided that all 2.2(e)), a Form 1–WD item (general Requirements of Membership; (3) Items audit reports filed with the SEC and instruction 7), certain Form 3 items 2.1, 2.2, and 2.4 of Form 1, and General designated examining authorities by (general instruction 8, Item 2.12, Item Instruction 4 of Form 1–WD; and (4) brokers and dealers must be prepared in 2.13, Item 5.1, Item 5.2), and certain Items 2.1–C and 3.2 of Form 3. The accordance with PCAOB standards. A Form 4 items (general instruction 9, PCAOB considers the economic final Board decision regarding the scope Item 3.2.e.1–2). To the extent these consequences of these amendments of the Board’s inspection program will amendments are being made to conform below. be made at a later date. The Board is not to the determinations of Congress and Rule 1001 amendments. The PCAOB delaying adoption of the amendments to the SEC, they will reflect the actions of is amending the Rule 1001 definitions of its rules. The PCAOB has also Congress and the SEC; the other ‘‘audit services’’ and ‘‘other accounting determined to make operative the two amendments are not expected to result services’’ to encompass the professional SECPS requirements that are applicable in separate economic consequences. services auditors provide to broker and to broker and dealer engagements only Amendments Involving Some PCAOB dealer audit clients. Pursuant to Section to firms that were members of the Discretion 102(b)(2)(B) of Sarbanes-Oxley, public SECPS in 2003. accounting firms applying for PCAOB The benefit of these amendments is In certain respects Congress and the registration will use these definitions, that they will clarify the applicability of SEC left to the PCAOB the along with the definition of ‘‘non-audit these rules to audits of brokers and determination of which Board rules, services’’ (which is not being amended), dealers. The amendments will promote forms, and ethics code provisions to attribute the annual fees they investor protection by clarifying that should apply to broker and dealer audits received from each broker and dealer registered firms must comply with the and how the Board should implement audit client to one of the defined PCAOB’s rules establishing auditing, other Dodd-Frank provisions. These categories of services on Items 3.1 and attestation, and quality control amendments in part reflect the PCAOB’s 3.2 of Form 1. Commenters did not standards in audits of SEC-registered own determinations and, to some address the proposed amendments to brokers and dealers. Consistent extent, entail economic consequences the definitions of ‘‘audit services’’ and compliance with PCAOB standards for beyond those resulting from Congress’s ‘‘other accounting services,’’ and the these audits will facilitate the Board’s statutory directives or the SEC’s Rule PCAOB is adopting the amendments as regulatory oversight over broker and 17a–5 determinations. proposed. The PCAOB does not expect dealer audits, and, among other things, that these amendments will result in facilitate the PCAOB’s development and 207 Separately, Section 1161(h) of the Housing cost-related implications apart from the implementation of a permanent and Economic Recovery Act of 2008, Public Law related Form 1 amendments discussed inspection program for these audits. The 110–289, 122 Stat. 2654, 2781 (2008) amended below. amendments will also facilitate the Sarbanes-Oxley to authorize the PCAOB to share information gathered in Board inspections and Section 3 amendments. The SEC’s regulatory oversight of auditors, investigations with the Director of the Federal amendments also generally make Rules Housing Finance Agency (with respect to audits of 3200T, 3300T, and 3400T, the PCAOB’s 208 See AICPA Comment Letter; Crowe Horwath institutions within the Federal Housing Finance rules establishing auditing, attestation, Comment Letter; KPMG Comment Letter; Rothstein Agency’s jurisdiction). The PCAOB is adopting Kass Comment Letter; WeiserMazars Comment amendments to conform to Section 1161(h) of the and quality control standards, Letter. Housing and Economic Recovery Act. See Rule applicable to audits of brokers and 209 See AICPA Comment Letter. 5108(a)(2)(b). dealers. Several commenters opposed 210 See Grant Thornton Comment Letter.

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brokers, and dealers (because the SEC or (2) providing any non-audit service Form 1. In addition to the conforming has direct oversight authority over the related to transactions that are amendments to Form 1, which were PCAOB, including the authority to ‘‘confidential transactions’’ or discussed earlier, the PCAOB is adding approve or disapprove the Board’s rules ‘‘aggressive tax positions’’ under Items 3.1 and 3.2 to Form 1 to require and standards). Internal Revenue Service regulations general identifying information about The PCAOB has determined that these (Rule 3522). The PCAOB is also adding the applicant’s broker or dealer audit amendments will create some additional a definition of ‘‘audit committee’’ to practice. Items 3.1 and 3.2 require the compliance costs for affected market Rule 3501 so that Rule 3526 name of the broker or dealer, its participants. These costs include the (Communication with Audit business address, CRD number, and CIK one-time implementation costs for Committees Concerning Independence) number, as well as the date of the audit registered firms to update their broker applies to brokers and dealers that may report, and the total amount of fees and dealer audit methodologies to not have organizational structures that billed for audit services, other reflect PCAOB standards and train their include audit committees. No accounting services, and non-audit personnel. These costs are attributable commenters opposed or suggested that services (as defined by the PCAOB). The to SEC Rule 17a–5. Thus, the PCAOB these ethics and auditor independence PCAOB expects that the Form 1 does not anticipate that its conforming rules does not apply audits of brokers disclosure requirements for broker and rule changes will result in significant and dealers. The PCAOB is not dealer audit clients will not affect most costs to auditors (or to brokers and prohibiting firms from providing tax registered firms, which have already dealers in the form of increased audit services to persons in financial filed Form 1. Going forward, the PCAOB fees). reporting oversight roles (Rule 3523) in expects that most new firms will not Similarly, the Board notes that only part due to commenter concerns about have prepared audit reports for broker two of the five SECPS membership additional cost-related implications for or dealer clients during the preceding or requirements adopted by the PCAOB auditors and brokers and dealers. current calendar year (without having apply to the audits of brokers and The PCAOB believes applying Rules been previously registered). The PCAOB dealers. These two requirements relate 3500T, 3501, 3502, 3520, 3521, 3522 is also taking steps to minimize the to continuing professional education and 3526 to audits of brokers and compliance burden associated with requirements for audit firm personnel dealers is consistent with investor these amendments. Recognizing that and the firm communicating through a protection. The amendments will firms with broker and dealer audit written statement to its professional promote investor protection by clients have not necessarily been personnel the firm’s broad policies and clarifying that auditors of brokers and maintaining billing records in a way procedures related to accounting dealers are required to adhere to certain that readily facilitates precise reporting principles, client relationships, and of the PCAOB’s ethics and according to the fee categories in services provided. The Board notes that independence rules. These rules, among Sarbanes-Oxley (as the PCAOB has all firms (including those that were other things, prohibit auditors from defined them), the PCAOB is adopting members of the SECPS in 2003) are entering into contingent fees or a note that provides that estimated required to comply with state and commission arrangements or providing amounts may be used in responding to professionally mandated continuing non-audit services related to aggressive these Form 1 items, to the extent that professional education requirements tax positions to broker and dealer audit these fees have not previously been that satisfy most, if not all, of these clients. Although these amendments disclosed or otherwise known to an education requirements, and expects will result in some new compliance applicant. Commenters did not address that firms distribute such information to costs on auditors of brokers and dealers, these Form 1 items. The PCAOB expects their professional personnel to the Board does not anticipate that these these amendments will result in small effectively manage their firms.211 The costs will be significant. These costs additional compliance costs related to PCAOB therefore estimates that will relate primarily to the one-time reporting this information for a small application of these requirements to costs to update the firm’s policies and number of applicant firms. The PCAOB audits of brokers and dealers that were procedures and training for these ethics is adopting these amendments as members of the SECPS in 2003 will not and independence rules. Firms will also proposed. result in a significant compliance have recurring monitoring costs related burden on auditors of brokers and to these amendments. Form 2. The amendments to Form 2 dealers. Form amendments. The amendments require that firms annually disclose The amendments also require that also tailor certain Form 1, Form 2, Form general information about their broker broker and dealer auditors adhere to 3, and Form 4 items to call for relevant and dealer audit practice. Specifically, certain of the PCAOB’s ethics and broker and dealer audit client the amendments require that firms auditor independence rules (Rules information and reflect the Dodd-Frank indicate whether they issued any audit 3500T, 3501, 3502, 3520, 3521, 3522, amendments (Items 3.1 and 3.2 of Form reports with respect to any broker or and 3526) but not to others (Rules 3523, 1, Items 3.1, 3.3, 4.3, 4.4, 7.1, and 7.3 dealer during the annual reporting 3524, and 3525). of Form 2, Items 2.5, 2.6, 2.8, 2.9, and period, and, if they did not issue any These rules establish a standard of 4.1 of Form 3, and Item 3.2.e.3 of Form such audit reports, to indicate whether ethical behavior for the conduct of 4). This information will further the they played a substantial role in the persons associated with registered firms PCAOB’s understanding of the market preparation or furnishing of an audit (Rules 3502 and 3520). They also for broker and dealer audit services and report with respect to a broker or dealer prohibit broker and dealer auditors enable the Board to make regulatory (Item 3.1). The amendments also require from: (1) Entering into a contingent fee decisions (like how to allocate its firms to disclose information concerning or commission arrangement (Rule 3521); inspections program resources) that will each audit report the firm issued for a protect the interests of investors. This broker or dealer audit client during the 211 State CPE requirements range from a information may also help inform reporting period (Item 4.3). If the firm minimum of 0 hours (in one state) to a maximum investors and the market generally about did not issue any broker or dealer audit of 120 hours every three years (in 45 states), and the PCAOB is requiring 120 hours every three years auditors’ broker and dealer audit reports during the reporting period, the (with a minimum of at least 20 hours every year). practice. amendments require the firm to disclose

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the names and identifying information practice. These reporting requirements investigation, disciplinary proceeding, for each broker or dealer audit report the will also result in cost-related or hearing on disapproval of firm played a substantial role in implications for auditors of brokers and registration. The amendments also preparing or furnishing in the reporting dealers and foreign registered firms. permit DEI to withhold documents period (Item 4.4). Firms are also Specifically, one-time costs that relate accessed from generally available public required to report information about primarily to updating their records to sources except to the extent that DEI certain types of relationships with facilitate annual reporting of their intends to introduce such documents as individuals and entities that have broker and dealer audit practice to the evidence. Commenters were concerned specified disciplinary and other PCAOB and reporting their Section 106 that there is no parallel provision in the histories involving brokers or dealers designee. Recurring costs will include SEC’s comparable rule, and that they (Items 7.1 and 7.3). Commenters the costs of compiling and reviewing could enable DEI to withhold generally asserted that firms should not information responsive to these exculpatory documents. Because the be required to report audit fee additional items in their annual reports. SEC’s rule is structured differently, and information for broker and dealer audit Over time, the PCAOB expects that the PCAOB does not agree that the clients on an ongoing basis on Form firms will develop certain efficiencies in amendments permit DEI to withhold 2.212 The PCAOB has determined to filing their annual reports, allowing exculpatory documents, the PCAOB has mitigate firm costs by not imposing an these costs to decrease to some extent. determined to adopt the amendments as annual reporting requirement with Form 3. The amendments to Form 3 proposed in most respects. The respect to fees for services provided to require firms to report information amendments to Rule 5422 are designed broker and dealer audit clients. The about certain types of relationships with to correct an anomaly in DEI’s PCAOB did not receive other comments individuals and entities that have document production requirements. on these Form 2 amendments and is specified disciplinary and other These amendments will facilitate the adopting them as proposed. histories involving auditors of brokers PCAOB’s efficient deployment of its The amendments to Form 2 also or dealers (Items 2.5, 2.6, 2.8, 2.9, and enforcement program’s resources. The reflect the Dodd-Frank amendment 4.1). The PCAOB did not receive PCAOB does not expect that the requiring certain foreign public comment on these Form 3 amendments amendments to Rule 5422 will result in accounting firms to designate to the SEC and has determined to adopt them as increased compliance burdens for or PCAOB an agent in the United States proposed. The PCAOB believes the registered firms or other market upon whom may be served any request Form 3 amendments will contribute to participants. by the SEC or PCAOB under Section 106 investor protection by providing the The Board is also amending Section of Sarbanes-Oxley or upon whom may PCAOB and the public with general 1000.08(m) of the SECPS membership be served any process, pleading, or information about disciplinary and requirements requiring that registered other papers in any action to enforce other histories involving auditors of firms (that are former members of the Section 106 of Sarbanes-Oxley (Item brokers and dealers. These reporting SECPS) notify the Commission’s Office 3.3). One commenter said proposed Item requirements are expected to result in of the Chief Accountant of the end of an 3.3 could result in confusion and efforts small compliance costs for firms related auditor’s relationship with an issuer by persons other than the SEC or to monitoring and compiling this audit client (including an EGC audit PCAOB to serve subpoenas or process information. client) only if the issuer has not timely on foreign firms’ designated agents.213 Form 4. The amendments to Form 4 filed Form 8–K.214 Previously, these The PCAOB has determined to adopt require a firm succeeding to the notices were required irrespective of Item 3.3 as proposed. This amendment registration status of a predecessor firm whether the issuer audit client reported imposes only a new reporting to indicate whether the firm issued an the change in auditors in a timely filed requirement and does not confer rights audit report with respect to a broker or Form 8–K. This amendment is designed on anyone. dealer audit client for financial to streamline the SECPS reporting The PCAOB believes the Form 2 statements with years ending after requirement and to make firm notices amendments strike an appropriate December 31, 2008 while not registered more meaningful.215 The PCAOB is also balance between the Board’s need for with the PCAOB and has never had an updating Appendix I of SECPS Section general identifying information to assist application for registration approved by 1000.43 to reflect the SEC’s updated the Board in overseeing registered firms’ the Board (Item 3.2.e.3). The PCAOB did contact information and preference for 216 broker and dealer audit practices, and not receive comment on this Form 4 email notifications. facilitate the PCAOB’s and SEC’s ability amendment and has determined to to track foreign firm designations, and adopt it as proposed. The PCAOB 214 See SECPS sec. 1000.08(m)(1). As amended, if by the end of the fifth business day after a client- the time and resources firms will need believes the Form 4 amendment will contribute to investor protection by auditor relationship has ended, and the issuer has to spend compiling, preparing, and not reported the change in auditors in a timely filed reporting this information. These providing the PCAOB with useful Form 8–K, then a former SECPS member firm must reporting requirements will contribute information. This reporting requirement simultaneously send a written report of this fact to is expected to result in small the former client and to the SEC’s Office of the to investor protection by providing compliance costs related to reporting Chief Accountant. additional information upon which the 215 this information for a small number of For SEC Registrants that do not file current PCAOB can base future program reports on Form 8–K, Section 1000.08(m) remains firms. adjustments to ensure efficient unchanged. Notices for these former clients are due Amendments made in light of by the end of the fifth business day following the deployment of the PCAOB’s resources. administrative experience. Under the end of the firm’s determination that the client- This information may also help inform auditor relationship has ended, irrespective of amendments to Rule 5422 the Division whether or not the registrant has reported the investors and the market generally about of Enforcement and Investigations auditors’ broker and dealer audit change in auditors in a timely filed report. See (‘‘DEI’’) need not make available for SECPS sec. 1000.08(m)(2). inspection and copying any document 216 The SEC staff strongly encourages emailing the 212 See CAQ Comment Letter; Crowe Horwath SECPS report notification to [email protected]. Comment Letter; EY Comment Letter; KPMG prepared by persons retained by the See Appendix I, SECPS sec. 1000.43. See also Comment Letter; McGladrey Comment Letter. PCAOB or the PCAOB’s staff to provide http://www.sec.gov/about/offices/oca/ 213 See KPMG Comment Letter. services in connection with a PCAOB 10a1notices.htm (‘‘The Office of the Chief

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Commenters generally supported where a former issuer audit client does if a firm resigns, declines to stand for re- reporting issuer auditor changes under not comply with Item 4.01 of appointment, or is dismissed from an Section 1000.08(m) only if the issuer Commission Form 8–K (Item 3.2). The issuer audit engagement, and the issuer audit client has not reported the change PCAOB did not receive comment on does not comply with Item 4.01 of Form in auditors in a timely filed SEC form these proposed amendments to Forms 1 8–K, the firm within 30 days must (exception reporting).217 But one and 1–WD and has determined to adopt report on Form 3 the issuer’s name and commenter suggested that Section them as proposed. Requiring applicants CIK number, if any, whether the firm 1000.08(m) should be eliminated to provide issuer CIK numbers on Form resigned, declined to stand for re- entirely,218 and one other commenter 1 will increase reporting costs slightly election or was dismissed, and the date said Section 1000.08(m) reporting is for a small number of applicants, but it thereof.226 The Form 3 requirement will ‘‘working, helpful, and appropriate’’ and will enable the PCAOB to more easily ensure that the Board and public are should not be amended.219 After identify issuers (as well as reducing made aware of issuer auditor changes. considering these comments, the search costs for investors, the SEC, and This reporting requirement is expected PCAOB has determined that more others). The Form 1–WD requirement to result in small compliance costs for focused Section 1000.08(m) reporting will reduce compliance burdens for firms related to monitoring and for SEC Registrants that are required to withdrawing firms by eliminating an reporting this information. file current reports on Form 8–K should unnecessary filing requirement. Applicability to Audits of Emerging enhance the SEC’s ability to monitor The Board also received comment on Growth Companies issuer auditor changes. The these proposed amendments to Form 3. amendments to Section 1000.08(m) of Two commenters supported this Statutory Background the SECPS membership requirements proposed reporting requirement.221 Two The Board is adopting these are designed to make firms’ SECPS commenters suggested that the proposed amendments pursuant to its authority notices more meaningful. These Form 3 reporting requirement appeared under Sarbanes-Oxley.227 Before rules amendments will contribute to the redundant to Section 1000.08(m) of the adopted by the Board can take effect, SEC’s oversight of issuer auditor SECPS membership requirements and they must be approved by the SEC. changes. encouraged the Board to develop a Pursuant to Section 107(b)(3) of Requiring that issuer auditor changes single solution for reporting auditor Sarbanes-Oxley, the SEC shall approve be reported only on an exception basis changes.222 Commenters were also a proposed rule if it finds that the rule for Form 8–K filers will also mean that concerned about the scope of the is ‘‘consistent with the requirements of auditors will be required to make fewer proposed Form 3 reporting, some of [the] Act and the securities laws, or is SECPS reports to the SEC, eliminating which commenters suggested would be necessary or appropriate in the public duplicative reporting of issuer auditor difficult for the auditor to know or interest or for the protection of changes in most cases. At the same time, would not be relevant in circumstances investors.’’ the PCAOB understands that there will where the auditor resigns or does not Section 104 of the Jumpstart Our be some incremental costs associated stand for reappointment.223 Finally, one Business Startups Act (‘‘JOBS Act’’) with the amendment to Section commenter said requiring auditors to amended Sarbanes-Oxley to provide 1000.08(m). Auditors that are former make a Form 3 filing in these that any additional rules adopted by the SECPS members will bear some circumstances would inappropriately PCAOB after April 5, 2012 do not apply additional expense in monitoring put auditors in the position of publicly to audits of emerging growth companies whether their former audit clients reporting information that has not yet (‘‘EGCs’’) 228 unless the SEC reported the change in auditors in a been reported by the issuer.224 timely filed Form 8–K. Given that The PCAOB has further considered 20–F) or investment companies other than business former SECPS member firms are already this proposal in light of the comments development companies (that are required to report required to make these reports, and that and determined to adopt these proposed auditor changes on Item 77K of Form N–SAR). moving this reporting requirement to an amendments to Form 3 largely as 226 See Form 3, Item 2.1–C and Item 3.3. If the issuer comes into compliance with an SEC exception basis is a fairly subtle change, proposed. To ensure that the Board and requirement to make a report concerning the matter the Board anticipates that these public are made aware of these events, pursuant to Item 4.01 of Form 8–K during this 30- additional expenses will be minimal. the Board is amending the instructions day period, the firm would not be required to report Finally, the PCAOB is amending Form to Form 3 to require firms to file a the change in auditors on Form 3. 1 to require issuer CIK numbers 220 (in special report with the Board if a client- 227 Under Section 101 of the Act, the mission of the PCAOB is to oversee the audits of companies Items 2.1, 2.2, and 2.4), amending Form auditor relationship has ended and the that are subject to the securities laws, and related 1–WD to eliminate the requirement that issuer has not reported the change in matters, in order to protect the interests of investors ‘‘original hard copies’’ of requests for auditors on a Form 8–K.225 Specifically, and further the public interest in the preparation of leave to withdraw from Board informative, accurate, and independent audit reports. Section 101(g) authorizes the Board to 221 registration be submitted (General See EY Comment Letter; KPMG Comment adopt rules to provide for ‘‘the exercise of its Instruction 4), and amending Form 3 to Letter. authority, and the performance of its require firms to report circumstances 222 See CAQ Comment Letter; KPMG Comment responsibilities under [the] Act.’’ Section 103 of the Letter (recommending that the SECPS requirement Act authorizes the Board to adopt auditing be eliminated). standards for use by registered public accounting Accountant strongly encourages sending the SECPS 223 See CAQ Comment Letter; Crowe Horwath firms in the preparation and issuance of audit report notification to [email protected]. The Comment Letter; KPMG Comment Letter; reports ‘‘as required by [the] Act or the rules of the staff will accept the date the email is received as McGladrey Comment Letter; PWC Comment Letter. Commission, or as may be necessary or appropriate the notification date.’’). 224 See D&T Comment Letter (suggesting, as an in the public interest or for the protection of 217 Crowe Horwath Comment Letter; EY Comment alternative, that the PCAOB be copied, on a investors.’’ Letter; Grant Thornton Comment Letter; McGladrey confidential basis, on the five-day SECPS letter so 228 Section 3(a)(80) of the Exchange Act defines Comment Letter; PWC Comment Letter. that the Board could be timely informed of issuer the term ‘‘emerging growth company.’’ An issuer 218 KPMG Comment Letter. auditor changes). generally qualifies as an EGC if it has total annual 219 D&T Comment Letter. 225 Form 3, Item 3.2 is only triggered by an gross revenue of less than $1 billion during its most 220 CIK numbers are unique, publicly-available issuer’s failure to comply with Item 4.01 of SEC recently completed fiscal year (and its first sale of identifiers and access codes issued by the SEC’s Form 8–K. This reporting requirement does not common equity securities pursuant to an effective Electronic Data Gathering, Analysis, and Retrieval apply to foreign private issuers (that are required to Securities Act registration statement did not occur System. report issuer auditor changes on Item 16F of Form Continued

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‘‘determines that the application of such Classification (‘‘SIC’’) codes applicable • The reported revenue for these additional requirements is necessary or to these entities are: Blank check entities ranged from zero to appropriate in the public interest, after companies, pharmaceutical approximately $962.9 million. The considering the protection of investors, preparations, real estate investment average and median reported revenue of and whether the action will promote trusts, prepackaged software services, these entities was approximately $60.2 efficiency, competition, and capital and computer processing/data million and $2 thousand, respectively. formation.’’ 229 Thus, the Board’s preparation services. • The average and median reported amendments are subject to a separate A majority of the entities that have assets among entities that reported SEC determination regarding their identified themselves as EGCs have revenue greater than zero was applicability to audits of EGCs. begun reporting information under the approximately $360.8 million and $69.3 To assist the SEC in determining securities laws. Of these entities, million, respectively. The average and whether the Board’s amendments approximately: median reported revenue among entities should apply to audits of EGCs, this • 22% identified themselves in that reported revenue greater than zero submission sets forth the PCAOB’s registration statements and were not was approximately $118.7 million and assessment of the economic reporting under the Exchange Act as of $22.1 million, respectively. consequences of these amendments. It October 1, 2013. • Approximately 48% of the entities • also considers the potential impact the 61% of entities that have identified that filed audited financial statements amendments would have on audits of themselves as EGCs began reporting identified themselves as ‘‘development EGCs, including consideration of under the Exchange Act in 2012 or later. stage entities’’ in their financial • 17% of these entities have been statements.234 efficiency, competition, and capital • formation. reporting under the Exchange Act since Approximately 38% were audited 2011 or earlier. by firms that are annually inspected by Characteristics of Self-Identified EGCs Approximately 24% of these entities the PCAOB (i.e., firms that have issued The PCAOB has been monitoring have securities listed on a U.S. national audit reports for more than 100 public implementation of the JOBS Act in securities exchange as of October 1, company audit clients in a given year) order to better understand the 2013. Approximately 64% of the entities or are affiliates of annually-inspected characteristics of EGCs and inform the that have identified themselves as EGCs firms. Approximately 62% were audited Board’s considerations regarding and filed an Exchange Act filing by triennially-inspected firms (i.e., firms whether it should request that the SEC indicated that they were smaller that have issued audit reports for 100 or 231 apply the amendments to audits of reporting companies. fewer public company audit clients in a EGCs. To assist the SEC, the Board is Audited financial statements were given year) that are not affiliates of providing the following information available for nearly all of the entities annually-inspected firms. regarding EGCs that it has compiled that have identified themselves as EGCs.232 For those entities for which Efficiency, Competition, and Capital from public sources.230 Formation Considerations for EGCs As of October 1, 2013, based on the audited financial statements were PCAOB’s research, 1,144 SEC registrants available, based on information In this section the PCAOB considers have identified themselves as EGCs in included in the most recent audited whether the action discussed above will SEC filings. These entities operate in financial statements filed as of May 15, promote efficiency, competition, and 2013: capital formation in audits of EGCs. diverse industries. The five most • common Standard Industrial The reported assets for those PCAOB staff has discussed the entities ranged from zero to applicability of the JOBS Act to this on or before December 8, 2011.) See JOBS Act approximately $18.2 billion. The rulemaking with the SEC staff. The Section 101(a), (b), and (d). Once an issuer is an average and median reported assets of PCAOB is not aware of any EGCs that EGC, it retains its EGC status until the earliest of: the entities were approximately $182.4 are also registered brokers or dealers. (i) The first year after it has total annual gross million and approximately $0.3 million, Moreover, the reporting regimes for revenue of $1 billion or more (as indexed for 233 inflation every five years by the SEC); (ii) the end respectively. registered brokers and dealers under of the fiscal year after the fifth anniversary of its SEC Rule 17a–5 are separate and first sale of common equity securities under an 231 Companies generally qualify to be smaller distinct from those for companies effective Securities Act registration statement; (iii) reporting companies, and have scaled disclosure subject to reporting requirements the date on which the company issues more than requirements, if they have less than $75 million in $1 billion in non-convertible debt during the prior public equity float. Companies without a calculable pursuant to Section 13 and 15 of the three-year period; or (iv) the date on which it is public equity float qualify as smaller reporting Exchange Act or for a Securities Act deemed to be a ‘‘large accelerated filer’’ under the companies if their revenues were below $50 million registration statement. The Board defers Exchange Act (generally, an entity that has been in the previous year. to the SEC on the applicability of the public for at least one year and has an equity float 232 Audited financial statements were available JOBS Act to brokers and dealers. of at least $700 million). for 1,134 of the 1,144 self-identified EGCs. 229 See Section 103(a)(3)(C) of Sarbanes-Oxley (15 233 For purposes of comparison, the PCAOB Amendments Involving No PCAOB U.S.C. 7213(a)(3)), as added by Section 104 of the compared the data compiled with respect to the 898 Discretion JOBS Act, Public Law 112–106 (Apr. 5, 2012). entities with companies listed in the Russell 3000 230 To obtain data regarding EGCs, the PCAOB’s Index in order to compare the EGC population with As described above, the conforming Office of Research and Analysis has reviewed the broader issuer population. The Russell 3000 amendments are technical and non- registration statements and Exchange Act reports was chosen for comparative purposes because it is filed with the SEC with filing dates between April intended to measure the performance of the largest substantive and are not expected to 5, 2012, and October 1, 2013, for disclosures by 3000 U.S. companies representing approximately entities related to their EGC status. Any filings 98% of the investable U.S. equity market (as 234 According to FASB standards, development subsequent to October 1, 2013 are not included in marketed on the Russell Web site). The average and stage entities are entities devoting substantially all this analysis. For example, a filing made after this median reported assets of issuers in the Russell of their efforts to establishing a new business and date suggesting an entity deregistered and is no 3000 was approximately $12.1 billion and for which either of the following conditions exists: longer an EGC is not included in this analysis. The approximately $1.5 billion, respectively. The (a) Planned principal operations have not PCAOB has not validated these entities’ self- average and median reported revenue from the most commenced or (b) planned principal operations identification as EGCs. The information presented recent audited financial statements filed as of May have commenced, but there has been no significant also does not include data for entities that have 15, 2013 of issuers in the Russell 3000 was revenue from operations. See FASB Accounting filed confidential registration statements and have approximately $4.6 billion and $717.2 million, Standards Codification, Subtopic 915–10, not subsequently made a public filing. respectively. Development Stage Entities—Overall.

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result in economic consequences consistent compliance with the submitted by any of the following independent from the directives of PCAOB’s rules and standards. methods: Congress and the SEC. The PCAOB Furthermore, the new information Electronic Comments expects that these amendments will not provided in the newly mandated form have efficiency, competition, or capital items can make the audit market more • Use the Commission’s Internet formation effects for audits of EGCs. competitive to some extent. It enables comment form (http://www.sec.gov/ auditors to learn more about their rules/pcaob.shtml ); or Amendments Involving Some PCAOB competitors, and can help brokers and • Send an email to rule-comments@ Discretion dealers make more informed decisions sec.gov. Please include File Number To the extent these amendments in selecting auditors. Brokers and PCAOB–2013–03 on the subject line. apply to EGCs, the PCAOB has no dealers serve an important financial Paper Comments intermediary role, so increased reason to think the economic • consequences for EGCs would differ competitiveness in the audit market for Send paper comments in triplicate significantly from those for the general brokers and dealers can, in theory, to Elizabeth M. Murphy, Secretary, population discussed above. The trickle down to the capital market. Securities and Exchange Commission, compliance costs associated with these Finally, improving the financial 100 F Street NE., Washington, DC new rule and reporting requirements are reporting of brokers and dealers 20549–1090. relatively fixed and may have a facilitates financial transactions of All submissions should refer to File No. somewhat disproportionate impact on companies, including those of EGCs, PCAOB–2013–03. This file number smaller registered firms. These costs which typically rely on smaller brokers should be included on the subject line may be passed on to firms’ audit clients, and dealers. if email is used. To help the Commission process and review your including smaller and newer public Conclusion companies like EGCs. But the PCAOB comments more efficiently, please use has endeavored to minimize the cost- The PCAOB requests that the only one method. The Commission will related implications of these Commission determine that it is post all comments on the Commission’s amendments to the extent possible, and necessary or appropriate in the public Internet Web site (http://www.sec.gov/ estimates that the cost-related interest, after considering the protection rules/pcaob.shtml ). Copies of the implications of the amendments for of investors and whether the action will submission, all subsequent issuers, brokers, and dealers will not be promote efficiency, competition, and amendments, all written statements significant. Similarly, the PCAOB capital formation, to apply these with respect to the proposed rules that estimates that the amendments will not amendments to audits of emerging are filed with the Commission, and all result in significant efficiency, growth companies. The PCAOB will written communications relating to the competition, or capital formation effects assist the SEC in considering any proposed rules between the Commission for EGCs. comments the Commission receives on and any person, other than those that these matters during the public may be withheld from the public in With respect to the amendments comment process. accordance with the provisions of 5 affecting broker and dealer audits, U.S.C. 552, will be available for Web brokers and dealers enhance the III. Date of Effectiveness of the site viewing and printing in the efficiency and liquidity of the financial Proposed Rules and Timing for Commission’s Public Reference Room, markets by playing the intermediary Commission Action 100 F Street NE., Washington, DC role of connecting retail and Pursuant to Section 19(b)(2)(A)(ii) of 20549, on official business days institutional investors to investments. the Exchange Act, and based on its between the hours of 10:00 a.m. and The adoption of the form amendments determination that an extension of the 3:00 p.m. Copies of such filing will also will increase, to some extent, the total period set forth in Section 19(b)(2)(A)(i) be available for inspection and copying amount of information available about of the Exchange Act is appropriate in at the principal office of the PCAOB. All brokers and dealers. In addition, to the light of the PCAOB’s request that the comments received will be posted extent that the additional PCAOB Commission, pursuant to Section without charge; we do not edit personal independence rules further enhance 103(a)(3)(C) of the Sarbanes-Oxley Act, identifying information from auditor independence, the quality of the determine that the proposed rules apply submissions. You should submit only financial reporting of brokers and to audits of emerging growth companies, information that you wish to make dealers may improve. Enhanced as defined in Section 3(a)(80) of the available publicly. All submissions financial disclosures of brokers and Exchange Act, the Commission has should refer to File No. PCAOB–2013– dealers help reduce information determined to extend to May 5, 2014 the 03 and should be submitted on or before asymmetry between managers and date by which the Commission should February 24, 2014. customers, and reduce the adverse take action on the proposed rules. selection risk for market participants. To For the Commission, by the Office of the the extent they do so, the PCAOB IV. Solicitation of Comments Chief Accountant, by delegated authority.235 believes the amendments will promote Interested persons are invited to Kevin M. O’Neill, market efficiency, competiveness, and submit written data, views and Deputy Secretary. capital formation by informing investors arguments concerning the foregoing, [FR Doc. 2014–00271 Filed 1–31–14; 8:45 am] and other market participants of the including whether the proposed rules BILLING CODE 8011–01–P broker and dealer audit practices of are consistent with the requirements of registered firms and promoting Title I of the Act. Comments may be 235 17 CFR 200.30–11(b)(2).

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Part III

Environmental Protection Agency

40 CFR Part 60 Standards of Performance for New Residential Wood Heaters, New Residential Hydronic Heaters and Forced-Air Furnaces, and New Residential Masonry Heaters; Proposed Rule

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ENVIRONMENTAL PROTECTION DATES: Comments must be received on either electronically on computer disk AGENCY or before May 5, 2014. Under the or CD–ROM or in paper copy. Paperwork Reduction Act, comments on The hearing schedule, including lists 40 CFR Part 60 the information collection provisions of speakers, will be posted on the EPA’s [EPA–HQ–OAR–2009–0734; FRL–9904–05– are best assured of having full effect if Web page for the proposal at: http:// OAR] the Office of Management and Budget www2.epa.gov/residential-wood-heaters (OMB) receives a copy of your prior to the hearing. Verbatim transcript RIN 2060–AP93 comments on or before March 5, 2014. of the hearing and written statements Public Hearing. The EPA will hold a Standards of Performance for New will be included in the rulemaking public hearing on this proposed rule on Residential Wood Heaters, New docket. February 26, 2014, in Boston, Residential Hydronic Heaters and ADDRESSES: Submit your comments, Massachusetts. The hearing will be at Forced-Air Furnaces, and New identified by Docket ID No. EPA–HQ– the following location: EPA New Residential Masonry Heaters OAR–2009–0734, by one of the England Regional Office, 5 Post Office following methods: AGENCY: Square, Suite 100, Leighton Hall, Environmental Protection • www.regulations.gov: Follow the Boston, MA. For directions and public Agency (EPA). on-line instructions for submitting transportation, visit: http://www.epa. ACTION: Proposed rule. comments. gov/region1/directions/. Please note that • Email: [email protected], SUMMARY: The EPA is proposing to 5 Post Office Square is a federal Attention Docket ID No. EPA–HQ– amend the Standards of Performance for building, and proper identification is OAR–2009–0734. New Residential Wood Heaters and to required for entry. • add two new subparts: Standards of The public hearing will provide Fax: (202) 566–9744, Attention Performance for New Residential interested parties the opportunity to Docket ID No. EPA–HQ–OAR–2009– 0734. Hydronic Heaters and Forced-Air present data, views or arguments • Furnaces and Standards of Performance concerning the proposed rule. The EPA Mail: United States (U.S.) Postal for New Residential Masonry Heaters. may ask clarifying questions during the Service, send comments to EPA Docket This proposal is aimed at achieving oral presentations, but will not respond Center, EPA West (Air Docket), several objectives for new residential to the presentations at that time. Written Attention Docket ID Number EPA–HQ– wood heaters and other wood-burning statements and supporting information OAR–2009–0734, U.S. Environmental appliances, including applying updated submitted during the comment period Protection Agency, Mailcode: 2822T, emission limits that reflect the current will be considered with the same weight 1200 Pennsylvania Ave. NW., best systems of emission reduction; as any oral comments and supporting Washington, DC 20004. Please include a eliminating exemptions over a broad information presented at the public total of two copies. In addition, please suite of residential wood combustion hearing. Written comments must be mail a copy of your comments on the devices; strengthening test methods as postmarked by the last day of the 90-day information collection provisions to the appropriate; and streamlining the comment period. Office of Information and Regulatory certification process. This proposal does If you would like to present oral Affairs, Office of Management and not include any requirements for heaters testimony at the hearing, please register Budget, Attn: Desk Officer for EPA, 735 solely fired by gas, oil or coal. In on-line (preferred method for 17th St. NW., Washington, DC 20503. addition, it does not include any registering) at http://www2.epa.gov/ • Hand Delivery: EPA Docket Center, requirements associated with appliances residential-wood-heaters no later than EPA West (Air Docket), Room 3334, that are already in use. The EPA February 19, 2014, to request a general 1301 Constitution Avenue NW., continues to encourage state, local, time slot for you to speak and any Washington, DC, Attention Docket ID tribal, and consumer efforts to special equipment. If this method is not Number EPA–HQ–OAR–2009–0734. changeout (replace) older heaters with available to you, please notify Mr. David Such deliveries are only accepted newer, cleaner, more efficient heaters, Cole no later than February 19, 2014, by during the Docket’s normal hours of but that is not part of this federal email: [email protected]); or by operation, and special arrangements rulemaking. telephone: (919) 541–5565. The EPA should be made for deliveries of boxed Particulate pollution from wood will make every effort to follow the information. heaters is a significant national air schedule as closely as possible on the Instructions: Direct your comments to pollution problem and human health day of the hearing. The public hearing Docket ID No. EPA–HQ–OAR–2009– issue. Health benefits associated with will begin each day at 9 a.m. (local time) 0734. The EPA’s policy is that all these proposed regulations are valued to and continue into the evening until 7 comments received will be included in be much greater than the cost to p.m. (local time). The EPA will make the public docket without change and manufacture cleaner, lower emitting every effort to accommodate all other may be made available online at appliances. These proposed regulations speakers who arrive and register before www.regulations.gov, including any would significantly reduce particulate 7 p.m. (local time) on the day of the personal information provided, unless matter (PM) emissions and many other hearing. The EPA is scheduling lunch the comment includes information pollutants from these appliances, breaks from 12:30 until 2 p.m. (local claimed to be Confidential Business including carbon monoxide (CO), time). Information (CBI) or other information volatile organic compounds (VOC), and Testimony will be limited to five (5) whose disclosure is restricted by statute. hazardous air pollutants (HAP). minutes for each commenter to address Do not submit information that you Emissions from wood stoves occur near the proposal. We will not be providing consider to be CBI, or otherwise ground level in residential communities equipment for commenters to show protected, through www.regulations.gov across the country, and setting these overhead slides or make computerized or email. The www.regulations.gov Web new requirements for cleaner stoves into slide presentations unless we receive site is an ‘‘anonymous access’’ system, the future will result in substantial special requests in advance. The EPA which means the EPA will not know reductions in exposure and improved encourages commenters to provide your identity or contact information public health. written versions of their oral testimonies unless you provide it in the body of

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your comment. If you send an email A. Executive Summary I. General Information comment directly to the EPA without B. Does this action apply to me? A. Executive Summary going through www.regulations.gov, C. Where can I get a copy of this your email address will be document? 1. Purpose of the Regulatory Action D. What should I consider as I prepare my automatically captured and included as The purpose of this action is to part of the comment that is placed in the comments for the EPA? II. Background propose amendments to the Standards public docket and made available on the of Performance for New Residential Internet. If you submit an electronic A. What is the NSPS program? B. Why was the original residential wood Wood Heaters (40 CFR part 60, subpart comment, the EPA recommends that heaters NSPS developed? AAA) and to add two new subparts: you include your name and other C. What are the requirements of the current Standards of Performance for New contact information in the body of your 1988 NSPS? Residential Hydronic Heaters and comment and with any disk or CD–ROM D. What are the major developments since Forced-Air Furnaces and Standards of you submit. If the EPA cannot read your the original NSPS was published? Performance for New Residential comment due to technical difficulties E. Why is residential wood smoke a Masonry Heaters (40 CFR part 60, and cannot contact you for clarification, concern? subparts QQQQ and RRRR). This the EPA may not be able to consider F. What are the major issues that drove the proposal was developed following a your comment. Electronic files should review process? Clean Air Act (CAA) section avoid the use of special characters, any III. Summary of Proposed Residential Wood 111(b)(1)(B) periodic review of the form of encryption, and be free of any Heater Appliance Amendments current residential wood heaters new defects or viruses. For additional A. Room Heaters source performance standards (NSPS). information about the EPA’s public B. Central Heaters: Hydronic Heaters and We concur with numerous stakeholders docket, visit the EPA Docket Center Forced-Air Furnaces that the current body of evidence homepage at www.epa.gov/epahome/ C. Masonry Heaters justifies revision of the current dockets.htm. For additional instructions IV. Summary of Environmental, Cost, residential wood heaters NSPS to on submitting comments, go to section Economic, and Non-Air Health and Energy Impacts capture the improvements in I.D.2 of the SUPPLEMENTARY INFORMATION A. What are the air quality impacts? performance of such units and to section of this document. Docket: The EPA has established a B. What are the benefits? expand the applicability of this NSPS to C. What are the cost impacts? docket for this rulemaking under Docket include additional wood-burning D. What are the economic impacts? residential heating devices that are in ID Number EPA–HQ–OAR–2009–0734. E. What are the non-air quality health and All documents in the docket are listed the market. The proposed changes are energy impacts? aimed at achieving several objectives, in the www.regulations.gov index. V. Rationale for Proposed Amendments Although listed in the index, some including applying updated emission A. Why are we proposing to expand the limits that reflect the current best information is not publicly available, scope of appliances subject to the NSPS? systems of emission reduction (BSER); e.g., CBI or other information whose B. How did we determine BSER and the disclosure is restricted by statute. proposed emission standards? eliminating exemptions over a broad Certain other material, such as C. How did we establish the proposed suite of residential wood combustion copyrighted material, will be publicly compliance timelines? devices; strengthening test methods as available only in hard copy form. D. How are we proposing to streamline the appropriate; and streamlining the Publicly available docket materials are requirements for certification, quality certification process. This proposal does available either electronically in assurance and laboratory accreditation? not include any requirements for heaters www.regulations.gov or in hard copy at E. What changes and additions to the solely fired by gas, oil or coal. In allowed test methods are we proposing? the EPA Docket Center, EPA West, addition, it does not include any F. What other changes and additions to the requirements associated with wood Room 3334, 1301 Constitution Ave. administrative requirements are we NW., Washington, DC. The Public heaters or other wood-burning proposing? appliances that are already in use. The Reading Room is open from 8:30 a.m. to VI. Statutory and Executive Order Reviews 4:30 p.m., Monday through Friday, EPA continues to encourage state, local, A. Executive Order 12866: Regulatory tribal, and consumer efforts to excluding legal holidays. The telephone Planning and Review and Executive number for the Public Reading Room is Order 13563: Improving Regulation and changeout (replace) older heaters with (202) 566–1744, and the telephone Regulatory Review newer, cleaner, more efficient heaters, number for the Air Docket is (202) 566– B. Paperwork Reduction Act but that is not part of this federal 1742. C. Regulatory Flexibility Act rulemaking. D. Unfunded Mandates Reform Act These revisions will help reduce the FOR FURTHER INFORMATION CONTACT: For health impacts of fine particle pollution, questions about this proposed action, E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation of which wood smoke is a contributing contact Mr. Gil Wood, Office of Air and Coordination With Indian Tribal factor in many areas. Residential wood Quality Planning and Standards, Governments smoke contains fine particles with an Outreach and Information Division, G. Executive Order 13045: Protection of aerodynamic diameter of 2.5 Community and Tribal Programs Group Children From Environmental Health micrometers or less (PM2.5), CO, toxic (C304–03), U.S. Environmental Risks and Safety Risks air pollutants (e.g., benzene and Protection Agency, Research Triangle H. Executive Order 13211: Actions formaldehyde), and climate-forcing Park, North Carolina 27711; telephone Concerning Regulations That emissions (e.g., methane and black Significantly Affect Energy Supply, number: (919) 541–5272; fax number: carbon). Residential wood smoke can Distribution, or Use (919) 541–0242; email address: increase PM to levels that cause [email protected]. I. National Technology Transfer and 2.5 Advancement Act significant health concerns. Populations SUPPLEMENTARY INFORMATION: The J. Executive Order 12898: Federal Actions that are at greater risk for experiencing information in this preamble is To Address Environmental Justice in health effects related to fine particle organized as follows: Minority Populations and Low-Income exposures include older adults, children I. General Information Populations and individuals with pre-existing heart

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or lung disease. Each year, smoke from and model lines manufactured before manufacturers. We believe such an wood heaters contributes hundreds of the effective date of this rule until their approach is prudent this time also to thousands of tons of fine particles current EPA certification expires allow manufacturers lead time to throughout the country—mostly during (maximum of 5 years) or is revoked. develop, test, field evaluate and certify the winter months. Nationally, After the certification expires or is current technologies across their residential wood combustion accounts revoked, these heaters and other new consumer product lines. In 1988, there for 44 percent of total stationary and heaters would have to meet updated were ‘‘logjam’’ concerns about the mobile polycyclic organic matter (POM) emission standards. We propose to capacity of accredited laboratories to emissions, nearly 25 percent of all area broaden the applicability of the conduct certifications tests and time for source air toxics cancer risks and 15 regulation beyond adjustable burn rate the EPA to review the tests and percent of noncancer respiratory wood heaters (the focus of the original adequately assure compliance if all the effects.1 Residential wood smoke causes regulation), to specifically include all NSPS requirements were to be many counties in the U.S. to either single burn rate wood heaters/stoves immediate. Those concerns have been exceed the EPA’s health-based national and pellet heaters/stoves. (Some pellet expressed this time also. Thus, upon the ambient air quality standards (NAAQS) heaters/stoves were not affected by the effective date of this rule, new heaters/ for fine particles or places them on the 1988 regulation.) Note that this stoves would be required to meet Step cusp of exceeding those standards.2 To preamble uses the following terms 1. Five years later, new heaters/stoves the degree that older, higher emitting, interchangeably: heaters, stoves and would be required to meet Step 2. The less efficient wood heaters are replaced heaters/stoves. Heaters/stoves and rule also would require that each unit be by newer heaters that meet the model lines manufactured after the equipped with a permanent NSPS label. requirements of this rule, or better, the effective date of the rule would be The two-step approach would apply to emissions would be reduced, the required to meet PM standards. all the heater types addressed in this efficiencies would be increased and As with the 1988 regulation, the rulemaking except for masonry heaters. fewer health impacts should occur. source category covered by this NSPS is For masonry heaters, we are not This action is conducted under the fundamentally different from the typical proposing a second more stringent authority of section 111 of the CAA, NSPS source category in several ways. emission limit. ‘‘Standards of Performance for New For example, most NSPS source Additional requirements would apply Stationary Sources,’’ under which the categories focus on industrial or to entities other than the manufacturer. EPA establishes federal standards of commercial facilities, and typically The wood heater test laboratory would performance for new sources within these heaters are installed and operated be subject to quality assurance source categories that cause or in residences, not industrial or requirements. The rule would continue contribute significantly to air pollution, commercial facilities. Also, residential to require the proper burn practices that which may reasonably be anticipated to wood heaters, hydronic heaters, forced- currently apply to the owner or operator endanger public health or welfare. air furnaces, and most masonry heaters of a wood heating appliance. In Consistent with section 111(h), if it is are mass-produced consumer items, addition, new pellet heater/stove not feasible to prescribe or enforce a rather than industrial processes owners and operators would be required standard of performance, the typically regulated by NSPS. Therefore, to use only the grade of licensed pellet Administrator may instead promulgate a as in 1988, we are proposing that fuels that are included in the heater/ design, equipment, work practice, or manufacturers participate in a stove certification tests, or better. We are operational standard, or combination certification program that tests a proposing to streamline the current thereof, that reflects the best system of representative heater per model line enforcement and audit provisions of the continuous emission reduction, which rather than requiring testing each heater. current subpart to reflect changes in (taking into consideration the cost of If the representative heater meets the industry practices and development of achieving such emission reduction, and applicable emission limits, the entire new tools and procedures. We are any non-air quality, health, and model line may be certified and the proposing improvements to the previous environmental impact and energy manufacturer would not be required to test methods as well as new test requirements) the Administrator test every heater. Individual heaters methods. determines has been adequately within the model line would still be We are also proposing new subpart demonstrated. subject to all other requirements, QQQQ, which would apply to new including labeling and operational wood-fired residential hydronic heaters 2. Summary of the Major Provisions of requirements. Manufacturers would be and forced-air furnaces, and new This Proposed Regulatory Action required to have quality assurance subpart RRRR, which would apply to In response to the results of the NSPS programs to ensure that all heaters new residential masonry heaters. These review, we are proposing to amend 40 within the model line conform to the new subparts are being proposed to CFR part 60, subpart AAA, Standards of certified design and meet the applicable address the remaining heater appliance Performance for New Residential Wood emission limits. The EPA would types in the 1987 residential wood Heaters. The current regulation applies continue to have the authority to heater source category listing that were to affected appliances manufactured conduct audits to ensure compliance. not regulated by the 1988 NSPS. Both after 1988. The current emission limits We ask for comments on all aspects of subparts are designed using principles would remain in effect for the heaters this approach, especially whether more similar to those in subpart AAA, i.e., than one representative heater should be certification testing of a representative 1 Strategies for Reducing Residential Wood tested prior to certification of the model unit in a model line, label requirements, Smoke. EPA–456/B–13–001, March 2013. Prepared by Outreach and Information Division, Air Quality line. associated quality assurance Planning Division, Office of Air Quality Planning The 1988 regulation also addressed requirements and phased and Standards, U.S. Environmental Protection some of the specific characteristics of implementation. Subpart RRRR has Agency, Research Triangle Park, NC 27711. pp. 4– this source category by developing a some additional features to address very 5. two-step compliance approach that small volume manufacturers, including 2 Air Quality and Emissions Data; Supporting Information for the Residential Wood Heater New provided a reasonable, phased a proposed compliance extension and Source Performance Standard, August 14, 2013. implementation of emission limits for the ability to use a software certification

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approach rather than a laboratory or equal to 15 masonry heaters per year) reductions; 3,200 tons of VOC emission test. would be required to meet a PM limit reductions; reduced exposure to HAP, The proposed PM standards for of 0.32 lb/MMBtu heat output. Five including formaldehyde, benzene, and subparts QQQQ and RRRR would be years after the effective date of the rule, POM; reduced climate effects due to implemented in two steps. For subpart small volume masonry heater reduced black carbon emissions; manufacturers (defined as QQQQ, upon the effective date of the reduced ecosystem effects; and reduced manufacturers constructing less than 15 rule, hydronic heaters would be visibility impairments. Table 1 is a masonry heaters per year) would be required to meet a Step 1 PM limit of summary of the results of the analysis required to meet the 0.32 lb/MMBtu per type of residential wood heater. We 0.32 pound per million British thermal heat output PM limit. unit (lb/MMBtu) output and forced-air have provided estimates reflecting furnaces would be required to meet a 3. Costs and Benefits average annual impacts for the 2014 to Step 1 PM limit of 0.93 lb/MMBtu heat Consistent with Executive Order 2022 timeframe, which are the output. Five years after the effective 13563, ‘‘Improving Regulation and implementation years for the options date of the rule, both hydronic heaters Regulatory Review,’’ we have estimated analyzed in the RIA for this proposal. and forced-air furnaces would be the cost and benefits of the proposed Monetized benefits are not currently required to meet a Step 2 PM limit of rule. The estimated net benefits of our available for masonry heaters. We ask 0.06 lb/MMBtu heat output. For subpart proposed rule at a 3 percent discount for emission and projected sales data RRRR (masonry heaters), upon the rate are $1.8 billion to $4.1 billion or per model that would help us prepare effective date of the rule, large $1.7 billion to $3.7 billion at a 7 percent emission reduction estimates and manufacturers (defined as discount rate. The non-monetized corresponding monetized benefits manufacturers constructing greater than benefits include 33,000 tons of CO estimates for masonry heaters.

TABLE 1—SUMMARY OF COMPLIANCE COSTS, MONETIZED BENEFITS, AND MONETIZED NET BENEFITS (2010 DOLLARS) BY TYPE OF HEATER IN THE 2014–2022 TIME FRAME FOR THE PROPOSED RULE

Monetized net Total annualized Monetized benefits Type of heater costs ab benefits ($ millions) ($ millions) ($ millions)

Wood stoves ...... $4.2 $62 to $140 ...... $62 to $140. Single burn rate stoves ...... 0.9 $290 to $650 ...... $290 to $650. Pellet stoves ...... 3.5 $19 to $43 ...... $19 to $43. Forced-air furnaces ...... 2.3 $1,000 to $2,200 ...... $1,000 to $2,200. Masonry heaters ...... 0.3 N/A c ...... N/A. Hydronic heating systems ...... 4.5 $480 to $1,100 ...... $480 to $1,100. a All estimates are for the time frame from 2014 to 2022 inclusive. These results include units anticipated to come online and the lowest cost disposal assumption. Total annualized costs are estimated at a 7 percent interest rate. b Total monetized benefits are estimated at a 3 percent discount rate. The total monetized benefits reflect the human health benefits associ- ated with reducing exposure to PM2.5 through reductions of directly emitted PM2.5. It is important to note that the monetized benefits include many but not all health effects associated with PM2.5 exposure. Benefits are shown as a range from Krewski et al. (2009) to Lepeule et al. (2012). These models assume that all fine particles, regardless of their chemical composition, are equally potent in causing premature mortality because the scientific evidence is not yet sufficient to allow differentiation of effect estimates by particle type. Because these estimates were generated using benefit-per-ton estimates, we do not break down the total monetized benefits into specific components. c The monetized benefits for masonry heaters are not available because we do not have national estimates of the potential emission reductions.

B. Does this action apply to me? not intended to be exhaustive, but rather would be directly applicable to sources provides a guide for readers regarding as a federal program. Thus, federal, The potentially regulated sources that entities likely to be affected by this state, local and tribal government are the subject of this proposal are listed proposed action. This standard, and any entities are not affected by this proposed in Table 2 of this preamble. Table 2 is changes considered in this rulemaking, action.

TABLE 2—POTENTIALLY REGULATED ENTITIES

Category NAICS a Code Examples of regulated entities

Residential Wood Heating ... 333414—Heating Equipment (except Warm Air Fur- Manufacturers, owners and operators of wood heaters, naces) Manufacturing. pellet heaters/stoves, hydronic heaters, and masonry heaters. 333415—Air-Conditioning and Warm Air Heating Equip- Manufacturers, owners and operators of forced-air fur- ment and Commercial and Industrial Refrigeration naces. Equipment Manufacturing. 238140—Masonry Contractors ...... Manufacturers, owners, operators and testers of ma- sonry heaters. Testing Laboratories ...... 541380—Testing Laboratories (except Medical, Veteri- Testers of wood heaters, pellet heaters/stoves, nary). hydronic heaters and masonry heaters. a North American Industry Classification System.

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C. Where can I get a copy of this your estimate in sufficient detail to been referred to as ‘‘Best Demonstrated document? allow it to be reproduced. Technology’’ or BDT. To better reflect • Provide specific examples to that section 111 was amended in 1990 In addition to being available in the illustrate your concerns and suggest to clarify that ‘‘best systems’’ may or docket, an electronic copy of this alternatives. may not be ‘‘technology,’’ the EPA is proposal, following signature by the • Explain your views as clearly as now using the term ‘‘best systems of EPA Administrator, will be posted at the possible, avoiding the use of profanity emission reduction’’ or BSER. As was following address: http:// or personal threats or character done previously in analyzing BDT, the www2.epa.gov/residential-wood-heaters. assassination. EPA uses available information and D. What should I consider as I prepare • Make sure to submit your considers the emissions reductions and my comments for the EPA? comments by the comment period incremental costs for different systems deadline. available at reasonable cost. The 1. Submitting CBI II. Background residential wood heaters source category Do not submit information containing is different from most NSPS source CBI to the EPA through A. What is the NSPS program? categories in that it is for mass-produced www.regulations.gov or email. Instead, Under section 111 of the CAA, residential consumer products. Thus, clearly mark the part or all of the ‘‘Standards of Performance for New important elements in determining that information that you claim to be CBI Stationary Sources,’’ the EPA lists BSER include the significant costs and and send or deliver only to the categories of sources that, in the EPA’s environmental impacts of delaying following address: Roberto Morales, judgment, cause or contribute production while models with those OAQPS Document Control Officer significantly to air pollution, which may systems are being designed, tested, field (C404–02), Office of Air Quality reasonably be anticipated to endanger evaluated and certified. As noted earlier Planning and Standards, U.S. public health or welfare pursuant to and discussed more fully later in this Environmental Protection Agency, section 111(b)(1)(A), and then preamble, the 2-step approach that the Research Triangle Park, North Carolina promulgates federal standards of EPA is proposing considers these 27711, Attention Docket ID Number performance for new sources within factors. That is, for this rulemaking, the EPA–HQ–OAR–2009–0734. For CBI such categories under section EPA has determined the appropriate information on a disk or CD–ROM that 111(b)(1)(B). At the time the EPA emission limits and compliance you mail to the EPA, mark the outside proposes and establishes standards for deadlines that together are of the disk or CD–ROM as CBI and then certain pollutants for a source category, representative of BSER. Details of the identify electronically within the disk or the EPA prepares an analysis of the BSER determinations are included in CD–ROM the specific information that potential costs and benefits associated section V.B. of this preamble. you claim as CBI. In addition to one with the NSPS, which includes the Section 111(b)(1)(B) of the CAA complete version of the comment that benefits from reductions in pollutants requires the EPA to periodically (every includes information claimed as CBI, for which the standards do not set 8 years) review an NSPS unless it you must submit a copy of the comment limits. For example, emission determines ‘‘that such review is not that does not contain the information reductions associated with the appropriate in light of readily available claimed as CBI for inclusion in the requirements of this proposed rule will information on the efficacy of such public docket. If you submit a disk or generate health benefits by reducing standard.’’ If needed, the EPA must CD–ROM that does not contain CBI, emissions of PM2.5, other criteria revise the standards of performance to mark the outside of the disk or CD–ROM pollutants, such as CO, and non-criteria reflect improvements in methods for clearly that it does not contain CBI. HAP. Consistent with section 111(h), if reducing emissions, including Information not marked as CBI will be it is not feasible to prescribe or enforce consideration of what emissions included in the public docket and the a standard of performance, the limitation is achieved in practice. EPA’s electronic public docket without Administrator may instead promulgate a Numerous stakeholders have suggested prior notice. Information marked as CBI design, equipment, work practice, or that the current body of evidence will not be disclosed except in operational standard, or combination justifies the revision of the current accordance with procedures set forth in thereof, which reflects the best system residential wood heaters NSPS to 40 CFR part 2. of continuous emission reduction which capture the improvements in 2. Tips for Preparing Your Comments (taking into consideration the cost of performance of such units and to achieving such emission reduction, and expand the applicability of this NSPS to When submitting comments, any non-air quality, health, and include additional residential wood- remember to: environmental impact and energy burning heating devices that are • Identify the rulemaking by docket requirements) the Administrator available today. The states of New York, number and other identifying determines has been adequately Connecticut, Maryland, Massachusetts, information (subject heading, Federal demonstrated. The NSPS do not Oregon, Rhode Island and Vermont, as Register date and page number). establish standards of performance for well as the Puget Sound Clean Air • Follow directions. Respond to existing sources. However, numerous Agency, have filed in U.S. District Court specific questions and organize states have acted independent of this in Washington, DC, to ask the court to comments by a section number. rule to address new and existing sources order the EPA to promptly review, • Explain why you agree or disagree; as part of state implementation plan propose and adopt necessary updates to suggest alternatives and substitute (SIP) measures necessary to ensure the NSPS for residential wood heaters. language for your requested changes. attainment and maintenance of the Likewise, the American Lung • Describe any assumptions and NAAQS. Several examples are Association, the Environmental Defense provide any technical information and/ discussed in section II.E of this Fund, the Clean Air Council, and or data that you used. preamble. Environment and Human Health, Inc., • If you estimate potential costs or The level of control prescribed by have filed a similar request. Also, some burdens, explain how you arrived at section 111 of the CAA historically has stakeholders have suggested that the

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EPA develop additional NSPS to 2. A usable firebox volume of less new models were being developed and regulate residential heating devices that than 0.57 cubic meters (20 cubic feet); certified. Advanced technology heaters/ burn fuels other than or in addition to 3. A minimum burn rate (weight of stoves including both catalytic and wood, e.g., coal, corn or grass. This dry test fuel consumed per hour) of less noncatalytic systems were considered to proposal does not include any than 5 kilograms per hour (kg/hr) (11 be BDT (now called BSER), because the requirements for heaters that solely burn pounds per hour (lb/hr)) as determined net emissions of both systems over time fuels other than wood. by the test procedure prescribed in 40 were estimated to be similar (even CFR 60.534 performed at an accredited though the initial certification test B. Why was the original residential laboratory; and results were lower for catalytic models) wood heaters NSPS developed? 4. A maximum weight of 800 kg due to possible degradation and lack of The development of the residential (1,760 lb), excluding fixtures and catalyst replacement. The EPA wood heater regulations began in the devices that are normally sold considered requiring catalyst mid-1980s in response to the growing separately, such as flue pipe, chimney, replacement on a regular schedule but concern that wood smoke contributes to and masonry components that are not determined that enforcement of such a ambient air quality-related health an integral part of the appliance or heat requirement would be difficult or problems. Several state and local distribution ducting. impractical. The EPA did require governments developed their own In the 1988 rulemaking, the EPA manufacturers to provide 2-year regulations for wood heaters. Then, in identified several types of residential unconditional warranties on the response to a lawsuit filed by New York wood combustion appliances that are catalysts and prohibited the operation of State and the Natural Resources Defense not subject to the current 1988 NSPS: catalytic heaters/stoves without a • Council (NRDC), the EPA agreed to Open masonry fireplaces catalyst. Principally because of these constructed on site concerns, the EPA wanted to ensure that initiate a residential wood heaters NSPS • rulemaking, with a schedule calling for Boilers/Heaters both catalytic and noncatalytic • Furnaces technology would continue to be final action by January 31, 1988. The • original standard was developed using a Cook Stoves options for manufacturers to use and In addition, the current 1988 NSPS regulatory negotiation process with the further develop. The Subpart AAA exempts the following from the key stakeholders (the wood heating Phase I standards issued in 1988 were emission limits: very similar to the Oregon Department industry, state governments, and • Wood heaters used solely for of Environmental Quality standards that environmental and consumer groups) research and development (R&D) under the Federal Advisory Committee had been in existence for a few years. purposes The Subpart AAA Phase II standards, Act (FACA). • Wood heaters manufactured for Pursuant to CAA section 111(b)(1)(A), issued in 1988 and which are still in export effect, are more stringent and had to be the EPA listed the residential wood • Coal-only heaters heater source category based on its met within 2 years of publication of the As noted earlier, because of the final rule, i.e., by 1990. Models determination that residential wood specific characteristics of this source equipped with a catalytic combustor heaters cause, or contribute significantly category (e.g., it applies to mass- cannot emit more than a weighted to, air pollution which may reasonably produced residential consumer items), average of 4.1 g of PM per hour. Models be anticipated to endanger public health the residential wood heaters NSPS (also that are not equipped with a catalytic or welfare (52 FR 5065, February 18, sometimes informally referred to as the combustor cannot emit more than a 1987). The EPA also proposed wood stove NSPS) allows compliance weighted average of 7.5 g of PM per regulations for residential wood heaters for model lines to be certified ‘‘pre-sale’’ hour. The lower initial emission limit (52 FR 4994, February 18, 1987). The by the manufacturers. A typical NSPS for the catalytic combustor-equipped final standards were published on source category approach that imposes models incorporates an expected February 26, 1988 (53 FR 5860). At the emission standards and then requires a deterioration rate for the catalysts such time the original NSPS was proposed, unit-specific compliance demonstration that after 5 years the emissions from the EPA estimated that a typical pre- would have been very costly and those models were expected to be NSPS conventional wood heater emits impractical. Therefore, the 1988 NSPS similar to the emissions from about 60 to 70 g/hr of PM and that a was designed to allow manufacturers of noncatalytic models. wood heater complying with the NSPS wood heaters to use a certification would emit 75 to 86 percent less than program to test representative wood D. What are the major developments conventional wood heaters. heaters on a model line basis. Once a since the original NSPS was published? C. What are the requirements of the model line is certified, all of the New systems for residential wood current 1988 NSPS? individual units within the model line heating devices are commercially are subject to labeling, operational and available in the U.S. that perform at The current subpart AAA defines a other requirements. Manufacturers are significantly lower g/hr emission rates wood heater as an enclosed, wood- then required to conduct a quality than required under the current 1988 burning appliance capable of and assurance program to ensure that NSPS. Furthermore, even greater intended for space heating or domestic appliances produced within a model performance potentially can be achieved water heating that meets all of the line conform to the certified design and by greater deployment of the best U.S. following criteria: meet the applicable emission limits. systems and the typical systems already 1. An air-to-fuel ratio (ratio of the There are also provisions for the EPA to widely employed in Europe, especially mass of combustion air introduced into conduct audits to ensure compliance. for outdoor and indoor hydronic the firebox to the mass of dry fuel As discussed in the 1988 rulemaking, heaters. The EPA has conducted a consumed) in the combustion chamber the standards limiting PM emissions research project ‘‘Environmental averaging less than 35-to-1 as from wood heaters in the current 1988 Characterization of Outdoor Wood-fired determined by the test procedure NSPS were phased in for this source Hydronic Heaters’’ through a prescribed in 40 CFR 60.534 performed category because of the need to consider cooperative R&D agreement with the at an accredited laboratory; the costs of delayed production while New York State Energy Research and

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Development Authority (NYSERDA) and distributing cleaner hydronic typical fireplace is lost out the chimney that evaluated four types of technology heaters for those locations where local rather than heating a room. The ranging from a common outdoor wood jurisdictions allow hydronic heaters. We voluntary program began in February boiler/heater to a state-of-the-art, high- developed the voluntary partnership 2009, and pertained only to low mass efficiency pellet boiler/heater from program with the goal of bringing fireplaces at that time. In July 2009, the Austria. The study showed considerable cleaner models to market faster than the program was expanded to masonry emission reduction due to a 2-stage traditional federal regulatory process. fireplaces. Under this program, cleaner combustion technology that includes Properly operated Phase 1 5 emission burning fireplaces are ones that qualify gasification of the fuel and more level (0.60 lb/MMBtu heat input) for the Phase 1 emissions level of 7.3 complete combustion.3 qualifying 6 units are approximately 70 grams of particles emitted per kilogram Many stakeholders have expressed percent cleaner than typical unqualified (g/kg) of fuel burned (approximately 57 concern to the EPA about a broad range units. After March 31, 2010, units that percent cleaner than unqualified of residential wood heating appliances only meet the Phase 1 emission level are models) or the Phase 2 emissions level that do not have emission standards in no longer considered ‘‘qualified of 5.1 g/kg (approximately 70 percent the current 1988 NSPS. These include models’’ under the voluntary cleaner than unqualified models). So single burn rate wood heaters; pellet partnership program. Properly operated far, 36 models (of hundreds of models heaters/stoves that are not subject to the Phase 2 emission level (0.32 lb/MMBtu on the market) have qualified under this current standard via the NSPS air-to- heat output) qualifying units are voluntary partnership program at the fuel ratio; wood ‘‘boilers’’ (hydronic estimated to be approximately 90 Phase 2 level. Typically, qualified heaters); forced-air furnaces; and percent cleaner than typical unqualified models have improved insulation and masonry heaters. Some stakeholders units. Typically, qualified models have added secondary combustion and/or a have also expressed an interest in improved insulation, secondary catalyst to reduce emissions. Some regulating non-‘‘heater’’ devices, such as combustion, separation of the firebox manufacturers have added doors to indoor and outdoor fireplaces, fire pits, from the water jacket, and the addition reduce the excess air and thus improve cook stoves and pizza ovens. of improved heat exchangers. combustion. The Phase 2 emission level One category of wood heating In addition to the voluntary in the voluntary fireplace program has appliances that has undergone partnership program, the EPA provided been considered as a starting point for significant growth is wood heaters/ technical and financial support for the some local regulatory authorities, and boilers or ‘‘hydronic heaters.’’ (Note that Northeast States for Coordinated Air additional actions have also been these units are technically called heaters Use Management (NESCAUM) to considered due to site-specific concerns, rather than boilers because many are not develop a model rule that several states e.g., local terrain, meteorology, pressurized and do not boil the liquid.) have adopted to regulate hydronic proximity of neighbors and other Hydronic heaters are typically located heaters. The model rule is a starting exposed individuals, and magnitude of outside the buildings they heat in small point for local regulatory authorities to other emissions in the airshed. Thus, sheds with short smokestacks. These consider, and additional actions may be some regulatory authorities have appliances burn wood to heat a liquid needed due to site-specific concerns, instituted additional requirements (e.g., (water or a water-antifreeze mixture) e.g., local terrain, meteorology, ‘‘no burn’’ days on which the fireplaces that is piped to provide heat and hot proximity of neighbors and other cannot be operated) and some have water to occupied buildings, such as exposed individuals. Thus, some banned new wood-burning fireplaces in homes. Often, in addition to supplying regulatory authorities have instituted some areas. heat for homes, the same unit is used to additional requirements, such as limits provide heat for barns and greenhouses The current 1988 NSPS in subpart on proximity to neighbors, limits on AAA have been in effect for over 25 and to provide warm water for visible emissions and limits on use in swimming pools. Hydronic heaters may years and manufacturers and test non-heating seasons. Some authorities laboratories have gained considerable also be located indoors and may use have banned hydronic heaters entirely other biomass (such as corn or wood experience in complying with the in some areas. requirements of the program. As a pellets) or coal or a combination for The EPA also developed a similar fuel. result, many manufacturers and test voluntary partnership program for low laboratories have suggested changes to Studies have shown that PM2.5 mass fireplaces (engineered, pre- the certification process to better concentrations in proximity to a typical fabricated fireplaces) and site-built outdoor hydronic heater (aka outdoor implement the program, such as masonry fireplaces. Fireplaces were not developing an electronic system for wood boiler) can exceed the 24-hour included in the 1988 NSPS for NAAQS.4 Thus, the EPA developed a submittals and approval. Many residential wood heaters because typical manufacturers and test laboratories have hydronic heater voluntary partnership fireplaces are not considered to be program in order to encourage also questioned the effectiveness of effective ‘‘heaters.’’ Most of the heat some of the current audit procedures. In manufacturers to reduce impacts on air content from the wood burned in a quality and health through developing addition, they have participated in the development of new test methods and 5 ‘‘Phase 1’’ and ‘‘Phase 2’’ emission levels refer 3 Environmental, Energy Market, And Health to levels established in EPA voluntary partnership test method improvements as part of the Characterization Of Wood-Fired Hydronic Heater programs. The earlier use of the term ‘‘Phase II’’ efforts of ASTM International (formerly Technologies. Prepared by U.S. EPA Office of (with a Roman numeral) standard refers to known as the American Society of Research and Development, et al., prepared for standards established in the current subpart AAA Testing and Materials). The 1988 NSPS NYSERDA. June 2012. for residential wood heaters. left a placeholder for development of an 4 For more information on wood smoke health 6 The terms ‘‘qualified’’ and ‘‘unqualified,’’ or effects, see: ‘‘Smoke Gets in Your Lungs: Outdoor other similar terms, refer to models that meet or efficiency test method for use in subpart Wood Boilers in New York State,’’ prepared by have not been shown to meet the voluntary AAA. On June 1, 2007, the EPA Judith Schrieber, Ph.D., et al., for the Office of the partnership program performance levels. Later use approved the Canadian Standards Attorney General of New York. August 2005. See of the terms ‘‘certified’’ and ‘‘uncertified,’’ or other Association (CSA) stack loss method in also: ‘‘Assessment of Outdoor Wood-fired Boilers,’’ similar terms, refers to models that are deemed to prepared by NESCAUM, March 2006 (revised June be in compliance or noncompliance with the NSPS B415 as an alternative for wood heater 2006). emission limits. efficiency testing in subpart AAA

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provided that the tests use the same source air toxics cancer risks, and 15 There is also concern about the health burn rate categories specified in the EPA percent of noncancer respiratory effects of other pollutants found in Reference Method 28. We are now effects.8 wood smoke. In addition to PM, wood proposing that the current version of In a number of communities, smoke contains harmful chemical this method be used for efficiency residential wood smoke increases substances such as CO, formaldehyde testing (CSA B415.1–10). We are also particle pollution to levels that cause and other organic gases, and nitrogen proposing EPA Method 28 WHH (wood- significant health concerns. Several oxides (NOX). fired hydronic heaters) that has been areas with wood smoke problems either Health effects from CO include: used for qualification testing of exceed the EPA’s health-based NAAQS • Interference with the blood’s ability hydronic heaters in the EPA voluntary for fine particles or are on the cusp of to carry oxygen to the brain, which partnership program and numerous exceeding those standards. For example, impairs thinking and reflexes state regulations. Other issues that have in places such as Keene, New • Heart pain been identified over the years regarding Hampshire; Sacramento, California; • Lower birth weights and increased test methods and emissions calculations Tacoma, Washington; and Fairbanks, deaths in newborns include emissions averaging, burn rate Alaska; wood combustion can • Death weightings, hot start versus cold start, contribute over 50 percent of daily Health effects from formaldehyde and emission caps per burn rate, and wintertime fine particle emissions.9 other organic gases include: catalyst degradation. Another issue is In December 2012, the EPA issued • Irritation of eyes, nose, and throat • whether to change current requirements revised NAAQS for PM to provide Inflammation of mucous to conduct certification tests with ‘‘crib’’ increased protection of public health membranes, irritation of the throat and wood to ‘‘cord’’ wood. ‘‘Crib wood’’ is and welfare. The 2012 NAAQS for PM sinuses • a specified configuration and quality of strengthened the annual NAAQS for Interference with lung function • dimensional lumber and spacers, which fine particles to 12 micrograms per Allergic reactions • was intended to improve the cubic meter (mg/m3) from the 1997 Nose and throat cancer in animals repeatability of the test method in 1988. standard of 15 mg/m3 and retained the and cancer in humans ‘‘Cord wood’’ is a different specified existing 24-hour fine particle standard Nitrogen oxide can irritate the eyes configuration and quality of wood that of 35 mg/m3 issued in 2006. The 2012 and respiratory system, may damage the more closely resembles what a typical NAAQS for PM also retains the current immune system by impairing the body’s ability to fight respiratory infection and homeowner would use. We address all 24-hour PM10 standards for health and 12 these issues as part of this proposal. environmental effects at a level of 150 can affect lung function. Residential wood combustion E. Why is residential wood smoke a mg/m3 to continue to provide protection emissions contain potentially concern? against effects associated with exposure to thoracic coarse particles. Areas that carcinogenic compounds including 1. Health and air quality concerns. do not meet the standards must take formaldehyde, polycyclic aromatic There is increasing recognition of the steps to reduce PM emissions. The hydrocarbons (PAHs), benzene, and health impacts of particle pollution, to National Association of Clean Air dioxin, which are toxic air pollutants, which wood smoke is a contributing Agencies (NACAA), the Environmental but their effects on human health via factor in many areas. Wood smoke Council of States (ECOS), NESCAUM, exposure to wood smoke have not been contains a mixture of gases and fine 13 the Western States Air Resources studied as extensively. particles that can cause immediate Council (WESTAR), and the Lake 2. Concerns about existing sources. effects, including burning eyes, runny Michigan Air Directors Consortium Many areas of the country are struggling nose and bronchitis. Exposure to fine (LADCO) have argued that more with reducing PM emissions due to particles has been associated with a stringent standards for new wood residential wood smoke from existing range of health effects, including heating devices would provide a much wood-burning appliances. Existing aggravation of heart or respiratory needed tool for states and local wood heaters will not be affected by this problems (as indicated by increased communities to use in addressing the rule. In addition, due to the long life hospital admissions and emergency growth of pollution from these span of wood-burning appliances and department visits), changes in lung sources.10 11 slow turnover, it may be many years function and increased respiratory Recent health studies considered in the review of the PM before the full benefits of these symptoms, as well as premature death. regulations on new appliances will be Populations at greater risk for NAAQS confirm the impacts on public health. The latest information on the PM shown. However, there are strategies to experiencing health effects related to reduce wood smoke that states, counties fine particle exposures include older NAAQS reviews is at http:// www.epa.gov/pm/actions.html. and townships can take to reduce wood adults, children and individuals with smoke independent of this rule.14 Some pre-existing heart or lung disease.7 states have direct legislative authority, Residential wood smoke contains fine 8 Strategies for Reducing Residential Wood Smoke. EPA–456/B–13–001, March 2013. Prepared and all states have authority to address particles and toxic air pollutants (e.g., by Outreach and Information Division, Air Quality new and existing sources as SIP benzene and formaldehyde). Each year, Planning Division, Office of Air Quality Planning measures necessary to ensure smoke from wood heaters contributes and Standards, U.S. Environmental Protection attainment and maintenance of the hundreds of thousands of tons of fine Agency, Research Triangle Park, NC 27711. pp. 4– 5. NAAQS. For examples, the State of particles throughout the country— 9 Memorandum dated April 4, 2013, from David mostly during the winter months. Cole, EPA, to Docket ID No. EPA–HQ–OAR–2009– 12 Department of Ecology, State of Washington, Nationally, residential wood 0734. Brochure on Wood Smoke and Your Health. combustion accounts for 44 percent of 10 Arthur Marin, Executive Director of NESCAUM September 2008, http://www.ecy.wa.gov/pubs/ total stationary and mobile POM and Dan Johnson, Executive Director of WESTAR, 91br023.pdf. to Steve Page, Director OAQPS/EPA. April 28, 2008. 13 EPA Burn Wise (Health Effects of Breathing emissions, nearly 25 percent of all area 11 Arthur Marin, Executive Director of Wood Smoke), http://www.epa.gov/burnwise/pdfs/ NESCAUM, to Gina McCarthy, Assistant woodsmoke_health_effects_jan07.pdf. 7 EPA Burn Wise (Consumer—Health Effects), Administrator for Air and Radiation/EPA. January 14 ‘‘Strategies for Reducing Residential Wood http://www.epa.gov/burnwise/healtheffects.html. 14, 2011. Smoke,’’ EPA–456/B–13–001. March 2013.

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Oregon, Washoe County (NV), and • Addressing other pollutants of manufactured before the effective date Township of Mammoth Lakes (CA) have concern of this rule until their current EPA required that, when a home is sold, • Reviewing the format of the certification expires (maximum of 5 existing wood heaters that have not standards, including adding years) or is revoked. After the been certified to meet the NSPS be requirements to document the tested certification expires or is revoked, these removed and destroyed and not resold. efficiency of the unit heaters and other new heaters would As additional SIP strategies, some states • Reevaluating exemptions, such as have to meet updated emission and local authorities have banned wood those based on air-to-fuel ratios and size standards. We propose to broaden the burning during certain high PM events, and weight applicability of the wood heaters restricted the amount of burning, and • Adding other wood heating devices regulation beyond adjustable burn rate regulated the type of materials being such as pellet heaters/stoves, hydronic wood heaters (the focus of the original burned. Non-regulatory programs, such heaters, and masonry heaters to the regulation) to specifically also include as education programs to teach the NSPS single burn rate wood heaters/stoves, public how to use their wood-burning • Regulating fireplaces and other pellet heaters/stoves, and any other appliances in ways that minimize ‘‘non-heater’’ devices (e.g., cook stoves) affected appliance as defined in the • emissions, have also been implemented. Regulating heating devices that proposed subpart AAA as a ‘‘room The EPA has also implemented burn fuel other than wood (e.g., other heater.’’ The proposed subpart AAA programs that encourage good burning solid biomass and coal) does not apply to new residential • Updating test methods practices, which can have a significant • hydronic heaters, new residential impact on emissions. The EPA, some Streamlining the certification forced-air furnaces and new residential state and local agencies, and other process to use electronic data masonry heaters because they would be submittals/reviews stakeholders, including the Hearth, • subject to their own subparts. Like the Patio and Barbecue Association (HPBA), Considering use of International 1988 current subpart AAA, the have been active in promoting wood Organization for Standardization (ISO)- proposed subpart AAA does not apply heater/stove changeout programs to accredited labs and ISO-accredited to fireplaces. This proposal tightens the certifying bodies replace older, higher-emitting heaters/ • definition for ‘‘cook stoves’’ and adds stoves with lower-emitting EPA- Improving compliance assurance/ definitions for ‘‘camp stoves’’ and certified heaters/stoves, pellet heaters/ enforceability and quality assurance/ ‘‘traditional Native American bake stoves, or other cleaner burning quality control ovens’’ to clarify that they would not be • Making the rule more consumer appliances. subject to the standard other than friendly by making more information appropriate labeling for cook stoves and F. What are the major issues that drove readily available on-line camp stoves. Finally, the proposed the review process? III. Summary of Proposed Residential subpart AAA clarifies that the emission We received several requests to Wood Heater Appliance Amendments limits would only apply to wood- conduct a review of the residential We are proposing to amend 40 CFR burning devices (i.e., not to devices that wood heaters NSPS, including a joint part 60, subpart AAA, Standards of only burn fuels other than wood, e.g., letter from WESTAR and NESCAUM Performance for New Residential Wood gas, oil or coal). that urged us to update and develop Heaters. We are also proposing two new As discussed in section II, NSPS regulations relating to a variety of wood subparts to address additional types of determinations of BSER must consider combustion devices. The authors cited residential wood heating appliances. costs. The fact that this source category concerns that many communities are Specifically, we are proposing subpart is for consumer products manufactured measuring ambient conditions above or QQQQ, Standards of Performance for for residential sale results in cost very close to the PM2.5 NAAQS and that, New Residential Hydronic Heaters and considerations that are different from in many instances, emissions from Forced-Air Furnaces, and subpart RRRR, those for industrial process source wood smoke are a large contributor to Standards of Performance for New categories that are typical for most those high PM2.5 levels. In addition, Residential Masonry Heaters. The NSPS. Specifically, if production and wood heater technology has greatly following sections describe the major sales were to be suspended while improved since the last revision of the provisions of each subpart. This designing, testing, field evaluating and NSPS. The standards we are proposing proposal does not include any certifying cleaner models, the cost of today recognize the cleaner, more requirements that would apply to potential lost revenues would be efficient technologies developed in heaters that are fueled solely by gas, oil significant, which necessitates recent years. Other states, or coal. In addition, this proposal does reasonable lead times for compliance environmental groups, and HPBA have not include any requirements associated with proposed emission limitations. also recommended several changes to with wood heaters or other wood- This was true in 1988, and is still true the NSPS. The HPBA Outdoor Wood- burning appliances that are already in today. Thus, we propose to allow a fired Hydronic Heater (OWHH) use. The EPA continues to encourage transition period so that heaters/stoves Manufacturers Caucus wrote the EPA to state, local, tribal, and consumer efforts with EPA certification currently in express their unanimous support for the to changeout (replace) older heaters effect can continue to be manufactured EPA to develop a federal regulation for with newer, cleaner, more efficient and sold until the current certification OWHH.15 heaters, but that is not part of this expires (5 years from date of Specific requests from stakeholders federal rulemaking. certification) or is revoked by the include: Administrator, whichever date is earlier. A. Room Heaters • Tightening emission standards We would not allow renewal of these based on current performance data The current 1988 regulation (subpart certifications. That is, in the near term, AAA) applies to affected appliances we are proposing to retain the current 15 HPBA OWHH Caucus letter to Greg Green, manufactured since 1988. The current Phase II PM emission limits (issued in Director, Outreach and Information Division, EPA. emission limits would remain in effect the current 1988 standards for September 27, 2007. for the heaters and model lines compliance in 1990) for adjustable burn

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rate wood heaters and pellet heaters/ as the ‘‘Proposed Approach’’) that Approach is the same as Step 1 under stoves with a current EPA certification would apply to all new adjustable burn the Proposed Approach.) The issued prior to the effective date of this rate wood heaters, single burn rate wood Alternative Step 2 emission limits rule. While our top priorities are to heaters and pellet heaters/stoves. Under would apply to each source ensure that emission reductions occur this Proposed Approach, the Proposed manufactured or sold on or after the in a timely manner and that there is no Step 1 emission limits for these sources date 3 years after the effective date of backsliding from the improvements that would apply to each source (a) the final rule. The Alternative Step 3 many manufacturers have already made, manufactured on or after the effective emission limits would apply to each it is also important to avoid date of the final rule or (b) sold at retail source manufactured or sold on or after unreasonable economic impacts on on or after the date 6 months from the the date 8 years following the effective those manufacturers (mostly small effective date of the final rule. Proposed date of the final rule (thus providing 5 businesses) who need additional time to Step 2 emission limits for these sources years between the Alternative Step 2 develop a full range of cleaner models. would apply to each adjustable rate and Alternative Step 3). We ask for The compliance schedule should also wood heater, single burn rate wood specific comments on this Alternative help avoid potential ‘‘logjams’’ at heater and pellet heater/stove Approach, including data and potential laboratories conducting certification manufactured or sold on or after the environmental and economic impacts testing. We ask for specific comments date 5 years after the effective date of on this alternative, and the degree to on the length of this proposed transition the final rule. We ask for specific which the Alternative Approach and the degree to which there would be comments on the Proposed Approach emission levels and dates could be any critical economic impacts on and the degree to which these dates considered BSER. Our current manufacturers who have heaters with could be sooner. preference is the Proposed Approach, current certifications if we were to not We are also asking for comments on but we intend to finalize a single allow up to the full 5-year certification a three-step compliance approach compliance approach after fully period for units manufactured after the (referred to herein as the ‘‘Alternative considering the comments received effective date of the final rule. We also Approach’’) for all adjustable rate wood during the public comment period on ask for specific comments on allowing heaters, single burn rate wood heaters this proposed rulemaking. grandfathering of Step 1 models that are and pellet heaters/stoves. Under this Table 3 summarizes the PM emissions tested in good faith according to the Alternative Approach, the Alternative standards that would apply to each proposed test methods and the proposed Step 1 emission limits would apply to wood heater appliance under this emission limits, even though the final each source: (a) manufactured on or Proposed Approach at each step. Table test methods may differ from this after the effective date of the final rule, 4 summarizes the PM emissions proposal, and if so, for how long. or (b) sold at retail on or after the date standards that would apply to each We are proposing a two-step 6 months from the effective date of the wood heater appliance under each step compliance approach (referred to herein final rule. (Step 1 under the Alternative of the Alternative Approach.

TABLE 3—PROPOSED APPROACH SUBPART AAA PM EMISSIONS LIMITS

Appliance Phases/steps PM emissions limit

Adjustable Rate Wood Heaters or Pellet Heaters/ Transition period from 1988 rule through the later 4.1 g/hr for catalytic heaters/stoves Stoves with current EPA certification issued prior of the effective date of the final revised rule or and 7.5 g/hr for noncatalytic heat- to the effective date of the Final Rule. expiration of current certification (maximum of 5 ers/stoves. years certification and no renewal). All Other Adjustable Rate Wood Heaters, Single Step 1: upon the effective date of final rule ...... 4.5 g/hr. Burn Rate Wood Heaters or Pellet Heaters/ Step 2: 5 years after the effective date of the final 1.3 g/hr. Stoves (includes currently certified heaters after rule. the certification expires, catalytic and noncata- lytic).

TABLE 4—ALTERNATIVE APPROACH SUBPART AAA PM EMISSIONS LIMITS

Appliance Phases/steps PM emissions limit

Adjustable Rate Wood Heaters or Pellet Heaters/ Transition period from 1988 rule through the later 4.1 g/hr for catalytic heaters/stoves Stoves with Current EPA Certification Issued of the effective date of the final revised rule or and 7.5 g/hr for noncatalytic heat- Prior to the effective date of Final Rule. expiration of current certification (maximum of 5 ers/stoves. years certification and no renewal). All Other Adjustable Rate Wood Heaters, Single Step 1: upon the effective date of final rule ...... 4.5 g/hr. Burn Rate Wood Heaters or Pellet Heaters/ Step 2: 3 years after the effective date of the final 2.5 g/hr. Stoves (includes currently certified heaters after rule. 1.3 g/hr. the certification expires, catalytic and noncata- Step 3: 8 years after the effective date of the final lytic). rule.

Although the 1988 promulgated manufacture (or export to the U.S.) rate wood heaters or pellet heaters/ subpart AAA (53 FR 5860, February 26, fewer than 2,000 heaters per year, this stoves because the majority of these 1988) included an additional 1-year proposal does not include a similar appliances already comply with the compliance extension for low-volume compliance extension. We are not proposed Step 1 emission levels. See manufacturers, i.e., companies that proposing a delay for adjustable burn section V.C. of this preamble for more

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discussion of this topic. However, we enter to add fuel to the heater or have to be accredited under ISO–IEC are requesting comments on the possible conduct other normal operation and Standard 17065 and register their need for such a compliance extension maintenance of the heater. Numerous credentials with the EPA and receive for single burn rate wood heaters, which stakeholders have indicated that an EPA approval prior to conducting any are not subject to the current subpart explicit requirement is needed. certifications or related work used as a AAA requirements. Like the current 1988 subpart, the basis for compliance with this rule and We are proposing to make a single EPA is using its authority under section report any changes in their accreditation determination of BSER for both catalytic 114 of the CAA to require each and any deficiencies found under ISO and noncatalytic heater systems. The manufacturer to submit certifications of 17065. We believe any certifying body EPA considered requiring catalyst compliance with this rule for all models that is approved by the EPA and is ISO- replacement on a regular schedule but and all units. As in the 1988 rule, accredited should be expected to act in determined that federal enforcement of provided that the certifications are such a way that will not create a conflict such a requirement would be difficult. timely, complete, and accurate, the EPA of interest. The EPA would oversee the As in the current 1988 rule, we are is proposing to allow certification to be certification body’s work and retain the proposing to require manufacturers to determined based on testing of a right to revoke the approval if provide warranties on the catalysts and representative unit within the model appropriate. Upon review of the test prohibit the operation of catalytic line. As in 1988, the cost of testing each report and quality control plan heaters/stoves without a catalyst. In unit would be an order of magnitude submitted by the manufacturer, the addition, we are proposing to require greater than the cost of a wood heater/ certifying body may certify compliance warranties for noncatalytic heaters/ stove and would be economically and submit the required documentation stoves. Though we are not proposing prohibitive. In addition, as in 1988, the to the EPA’s Office of Enforcement and efficiency standards at this time, we are testing of each unit could create a Compliance Assurance for review, proposing to require testing and potential ‘‘logjam’’ that would stymie approval and listing of the certified reporting of these data; however, we are the certification of cleaner model lines. appliance. Our preference is to require requesting specific comment on the However, as discussed earlier, we are the new expanded certification process need to propose efficiency standards asking for specific comments on (i.e., inclusion of ISO-accredited and and any data to support the basis for whether we should require testing of EPA-approved certifying bodies) for these standards. more than one representative unit prior certifications that occur after the We are also proposing to require to certification of a model line. The effective date of the final rule. However, emission testing and reporting based on proposed subpart revises the definition we request specific comments on both crib wood and cord wood for the of ‘‘Accredited Test Laboratory,’’ from whether we should allow a transition proposed Step 1 compliance, and only EPA-accredited laboratories to period; that is, whether we should allowing manufacturers to choose laboratories approved by the EPA after retain the current ‘‘Administrator whether to certify with crib wood or being accredited by a nationally Approval Process’’ to review the cord wood for the proposed Step 1 upon recognized accrediting body to perform certification application, including test the effective date of the final rule. For testing for each of the test methods results, for the first year following the the proposed Step 2 compliance 5 years specified in this NSPS under ISO–IEC 16 effective date of the final rule. Note that after the effective date of the final rule, Standard 17025, to conduct the models certified prior to the effective we would require certifying with cord certification testing. The laboratories date of the final rule would not have to wood only. As discussed earlier in this would have to register their credentials be re-tested until the certification preamble, ‘‘crib wood’’ is a specified with the EPA and be approved by the expires or is revoked. configuration and quality of EPA prior to conducting any As in the current 1988 NSPS, each dimensional lumber and spacers that certification testing or related work used affected unit would be required to have was intended to improve the as a basis for compliance with this rule. an applicable permanent label and have repeatability of the test method in 1988. Also, they would be required to report an owner’s manual that contains ‘‘Cord wood’’ is a different specified any changes in their accreditation and specified information. We are proposing configuration and quality of wood that that permanent labels would be required any deficiencies found under ISO more closely resembles what a typical for each affected unit on the effective 17025, and the EPA may revoke the homeowner would use. We ask for date of the final rule. We propose to approval if appropriate. Our proposal is comments and test data to compare clarify that the permanent label must be this laboratory definition revision be heater performance with crib wood and installed so that it is readily visible both effective upon the effective date of the cord wood. before and after the unit is installed. final rule. However, we request specific Although we lack sufficient data to This clarification is needed to document comments on whether we should allow propose a separate CO emissions the use of complying heaters that may a transition period. standard at this time, we propose to be required by state and local rules and/ The proposal would require a require that the manufacturer determine or to determine the unit’s applicability ‘‘Certifying-Body-Based Certification CO emissions during the compliance to any future changeout programs. We Process,’’ upon the effective date of the test and report those results to the EPA. also request specific comments on how final rule. Under this process, after We specifically request emission and to best assure that manufacturers and testing is complete, a certification of cost data for systems that reduce CO retailers and online marketers of wood conformity with the PM emissions emissions. If those systems warrant heaters only use valid certification test standards must be issued by a certifying inclusion in the final rule, we would data and not exaggerated claims. consider doing so. In addition, we ask body with whom the manufacturer has In the current (1988) NSPS, temporary for specific comments on whether the entered into contract for certification labels (aka, hangtags) were required for final rule should explicitly require services. The certification body would wood heaters that are subject to the indoor CO monitors as a critical safety standards and also for ones that are not 16 The International Organization for component for heaters installed in Standardization (ISO) and the International (e.g., coal heaters/stoves). These occupied buildings or other buildings or Electrotechnical Commission (IEC) prepare and temporary labels were intended enclosures in which the operator would publish international standards. primarily to contain information useful

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to consumers and prospective heater according to the owner’s manual do not have to be statistically random. purchasers to be able to compare continues to include a list of prohibited Also, we clarify that the EPA and states different appliance models and to fuel types that create poor or even are allowed to be present during the inform the consumer about the hazardous combustion conditions and audits and that states (and other entities, importance of proper operation and includes operation of pellet fuel including the public) may provide the maintenance. These temporary labels appliances only with the grades of pellet EPA with information that may included the wood heater’s compliance fuels that are included in the ultimately be used in the EPA status, comparative emission and certification tests, or better. We propose enforcement and compliance assurance efficiency performance data, and heat that pellets for the certification tests be efforts. output rates and explicitly stated that only those that have been produced As discussed earlier, the EPA the appliance will achieve low smoke under a licensing agreement with the developed Method 28 in 1987 and 1988 output and high efficiency only if Pellet Fuels Institute (PFI), or equivalent as part of our efforts on the 1988 NSPS. properly operated and maintained. The (after request and subsequent approval We received input at that time from EPA no longer believes these temporary by the EPA), to meet certain minimum manufacturers, laboratories, and some labels are necessary for all certified requirements and procedures for a states. Oregon Method 7 was the starting heaters because we have developed and quality assurance process. Details of the point for Method 28 and, thus, Method are continuing to improve our education PFI program are available at http:// 28 has many aspects similar to Oregon and outreach program for consumers on pelletheat.org/pfi-standards/pfi- Method 7. The details on the history selecting the cleanest certified standards-program/. We are not aware and development of Method 28 are appliances and wood fuel with of any other U.S. organization that has contained in the February 18, 1987, appropriate moisture content and on the a pellet fuel quality assurance program proposal in the Federal Register (52 FR effective use and operation of these similar in quality to the PFI program. 5003) and the February 26, 1988, final appliances. Consequently, we are However, we request specific comments rule in the Federal Register (53 FR proposing to remove the requirement for on whether another high quality 5866). temporary labels on certified heaters. program exists. Manufacturers’ data The manufacturers, laboratories, Consumers can get additional show that pellet fuel quality assurance states and the EPA have more than 25 information that would normally be is necessary to ensure that the years of experience with Method 28, contained on the temporary labels at appliances operate properly such that and it has been very useful for certifying http://www.epa.gov/compliance/ emissions are reduced as intended. We hundreds of model lines of wood monitoring/programs/caa/ ask for specific comments on how to heaters/stoves. We asked the woodheaters.html. We request comment determine equivalency for fuel pellets, manufacturers, EPA-accredited on the potential impact that deleting and whether we should include other laboratories and states for their insights this requirement might have on a requirements of best burn practices or on Method 28. Many stakeholders agree consumer’s ability to select wood adjustments to help ensure proper that changes should be made to improve heaters that meet the proposed operation, e.g., chimney height and draft the reproducibility and repeatability of standards and are the cleanest and specifications, moisture content of wood the test procedures and to address whether we should consider developing and limits on visible emissions. concerns about how to best ensure a voluntary labeling program for the The proposed subpart AAA still protection across the entire U.S. when cleanest of the clean. As discussed contains the crucial quality assurance various operating scenarios are used and elsewhere, we also ask for specific provisions in the current 1988 NSPS. A various wood species and densities are comments on language that we should comprehensive discussion of the used. For example, to address some of require manufacturers and retailers to rationale is included in the 1988 these concerns, ASTM has used a provide to consumers to help explain preamble. For example, a model line ‘‘consensus-based’’ process to develop the relative benefits of high-performing must be recertified whenever any E2515–10 ‘‘Standard Method for heaters versus lower-performing heaters change is made in the original design Determination of Particulate Matter and how to reduce exaggerated claims. that could affect the emissions rate for Emissions in a Dilution Tunnel.’’ The In addition to the PM emissions that model line or when any of several EPA is proposing that this sampling and standards, we are proposing to continue specified tolerances of key components analysis method be used for all of the to require the proper burn practices that are changed. The 1988 requirements for appliances in this rulemaking. As with already apply to the owner or operator manufacturer quality assurance all test methods, there are opportunities of a wood heating appliance. That is, the programs would be superseded by a for continual improvement, and the EPA current 1988 standards already include Certifying-Body-Based Quality requests specific comments and the requirement that the owner or Assurance program. (As noted earlier in supporting data for additional potential operator must operate the heater this preamble, we would not require improvements to E2515–10. consistent with the owner’s manual and retesting for models that are certified A number of states have expressed not burn improper fuels and prior to the effective date of the final concern about ASTM’s Intellectual manufacturers typically void their rule until the certification expires or is Property Policy which requires all warranties in cases of improper revoked.) The certifying body would participants to give their intellectual operation. Numerous states have conduct regular, unannounced audits to property rights to ASTM so that, in turn, expressed their support for the ensure that the manufacturer’s quality ASTM can control distribution of the continuation of these requirements. control plan is being implemented drafts and final test methods and sell Some states and local jurisdictions have properly. the final test methods to potential users. enforced similar requirements, and this The EPA audit testing programs of the Attorneys General for several states have proposal would allow potential 1988 NSPS will be maintained under indicated that state employees in their delegation of enforcement authority of the proposed changes, although they states cannot give to ASTM the property these NSPS requirements upon the EPA will be streamlined and simplified to rights for property that their states paid approval of state requests. better ensure compliance and to clarify for via the employee salaries and other The proposed revision clarifies that that audits can be based on any expenditures and thus cannot the current requirement to operate information the EPA has available and participate in ASTM’s ‘‘consensus-

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based’’ process. For this rulemaking, concerned about the ASTM changes on this rule. We request data to help inform ASTM is allowing public review, for no burn rate categories, i.e., easing or our decision for the final rulemaking. charge, of the ASTM test methods and eliminating the lowest burn rates that 4. We are not proposing to allow draft work products relevant to this often occur in home operations and are manufacturers to specify a smaller proposed rule at www.astm.org/epa. The typically the highest emitting and least volume of the firebox for testing because EPA requests specific comments and efficient. The EPA is asking for specific of our concerns about how to ensure supporting data on the substance of all comments on these issues and that homeowners do not circumvent of the test methods relevant to this recommendations and supporting data such a specification during operation, rulemaking and specific comments on for other changes. The following thereby increasing emissions beyond the the ASTM process and ways to paragraphs discuss some of the key test levels that are measured during testing. ameliorate the process concerns. method provisions we are proposing 5. We are proposing several tighter The ASTM methods E2779–10 and not proposing. Additional specifications on the test fuel moisture ‘‘Standard Test Method for Determining information on the methods is at content, fuel load and coal bed depth in Particulate Emissions from Pellet http://www2.epa.gov/residential-wood- order to improve the reproducibility and Heaters’’ and E2780–10 ‘‘Standard Test heaters and at www.astm.org/epa. repeatability of the certification tests. Method for Determining Particulate 1. We do not agree with the ASTM This part of the proposal is based on Emissions from Wood Heaters’’ are changes to the burn rate categories, low recommendations from one of the being considered for potentially burn rate requirement, and weightings original EPA-accredited laboratories. We replacing the wood heater fueling and in Method 28. Several states are very specifically request comments and operation requirements in Method 28 concerned that easing these items would supporting data regarding the following for pellet heaters and wood heaters, create the potential for backsliding. proposed tighter specifications for the respectively. Note that ASTM intends to Also, we are aware of several design laboratory test: (a) tightening fuel load use the same E2515–10 for the sampling changes being considered by a number dry-basis moisture content tightened and analysis portion for all the of manufacturers that are relatively from the Method 28-allowed 6 appliances and then separate methods inexpensive (i.e., less than $20 dollars) percentage-point range from 19 percent per appliance types for the fueling and and will reduce the emissions during to 25 percent to a reduced range of 22.5 operation portions of these methods. periods when operated at low burn percent +/¥1 percent; (b) tightening the The EPA believes E2525–10 is a sound rates. We instead propose that the Method 28-allowed range for fuel load method for sampling and analysis and original provisions in Method 28 be weight from 7.0 lb/ft 3 +/¥10 percent of we are proposing its use. The EPA also retained for the burn rate categories and the fuel load weight (or 7 lb/ft 3 +/¥0.7 believes that E2779–10 is a sound low burn rate requirement. We lb/ft 3) to 7 lb/ft 3 +/¥1 percent (or 7 lb method for measuring emissions from considered the weightings and believe +/¥0.07 lb) of the fuel load weight, pellet heaters/stoves and includes that if weightings are to be used, they calculated in accordance with Method reasonable measures to reduce testing should be the same as the original 28; and (c) tightening the Method-28- costs for continuously-fed appliances, requirements in Method 28. We are also allowed range for the test-initiation and we are proposing its use. However, proposing that the burn rates not be coal-bed weight from 20 percent to 25 because, as noted earlier, some states weighted at all for the Step 2 standards percent of the fuel load weight to 22 were not able to participate in the but rather that the emission limits be percent +/¥1 percent of the fuel load ASTM method development process, we separate for Burn Rate Category 1 weight. specifically request comments and (lowest burn rate category) and Burn 6. We propose to require efficiency supporting data of all aspects of not Rate Category 4 (maximum burn rate testing according to CSA B415.1–1017 only these test methods but also all the category) and that compliance for each using the stack loss method. That is, proposed methods as part of the be shown separately. during each test run, data must be comments on this proposed rule. 2. We propose to not allow 5 minutes obtained and presented for the purpose Similarly, the EPA believes that for startup before closing the doors of calculation of overall efficiency as ASTM Method E2780–10 includes because startup is often the highest specified in CSA B415.1–10. This would improvements for testing adjustable and emitting part of the wood heater include CO and carbon dioxide (CO2), single burn rate wood heaters, and we operation, and manufacturers need to flue gas temperature and appliance are proposing many of the ensure that startup emissions are also mass. CSA B415.1–10 was developed by improvements today. For example, we reduced. Again, relatively inexpensive a ‘‘consensus’’ process, but no states are proposing the use of the E2780–10 means exist to reduce these emissions. were part of the process. Thus, we appendix for testing single burn rate 3. We are not proposing to use the specifically request comments on our appliances. However, we, and some new ASTM equation for converting the proposal to require use of this method. states, do not agree with all the changes emission test values between the EPA 7. We propose that electronic test that ASTM has made for adjustable burn Reference Method 5G ‘‘Determination of report submittals include the locked rate wood heaters, and some provisions Particulate Emissions From Wood spreadsheets so the formulas used and are not as protective as we, and some Heaters From a Dilution Tunnel relevant calculations can be evaluated states, now believe they need to be. As Sampling Location’’ and the EPA in detail. We request comments on this noted above, several states are Reference Method 5H ‘‘Determination of specific proposal. concerned about how to best ensure that Particulate Emissions From Wood 8. We propose that the test report the methods are protective for the entire Heaters From a Stack Location’’ include a narrative detailing specifics U.S., considering differences in wood currently allowed in the NSPS. Rather, about test conditions and operations, species, density, and homeowner we are proposing that Method 5G(3) test such as how the test was run, operating operation. The EPA and the states are values be reported as tested for heaters conditions, issues and special particularly concerned about scenarios that have valid certifications prior to the procedures. in which heaters/stoves will have higher effective date of this rule and ASTM emissions in home use than the E2515–10 for all other heaters and that 17 ‘‘CSA B415.1–10: Performance testing of solid- fuel-burning heating appliances,’’ Canadian emissions measured in the laboratories. Method 5H not be used for testing for Standards Association, Mississauga, Ontario, For example, the states and the EPA are certifications after the effective date of Canada. 2010.

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9. We propose that each individual emissions and efficiency vary according residential hydronic heaters and forced- moisture content reading must be in the to test methods, operating scenarios, air furnaces. Under the Proposed range of 18 to 28 percent on a dry basis wood species and density and other Approach, the Proposed Step 1 emission and the average moisture content of variables such as cord wood versus crib limit for residential hydronic heaters each piece of test fuel must be in the wood. We believe that such testing and forced air heaters would apply range of 19 to 25 percent. Also, we would help assure consumers, upon the effective date of the final rule. propose the following procedure for the neighbors and other stakeholders that The Proposed Step 2 emission limit for moisture measurements: ‘‘Using a fuel the appliances perform as well on all residential hydronic heaters and forced moisture meter as specified, determine manufacturer-listed fuels and operating air heaters would apply 5 years after the the fuel moisture for each test fuel piece scenarios as they do for the EPA effective date of the final rule. We ask used for the test fuel load by averaging laboratory test scenarios. Proposed Step for specific comments on the Proposed at least five fuel moisture meter 2 tests will use cord wood and not crib Approach and the degree to which these readings, one from each of three sides, wood. The EPA, industry and states dates could be sooner. measured parallel to the wood grain. believe that moving to cord wood Penetration of the moisture meter testing will help address concerns about We also considered an alternative three-step approach (Alternative insulated electrodes shall be 1⁄4 (one- actual emissions from heaters/stoves in fourth) the thickness of the fuel piece or home use versus test laboratories. We Approach) for residential hydronic 19 millimeters (mm) (3/4 in.), are working with states and industry on heaters and forced air heaters. Under whichever is less, for 3 of the a cord wood test method and evaluating this Alternative Approach, as in the measurements made at approximately 3 potential revisions to the current Proposed Approach, the Alternative inches from each end and the center. version of the ASTM E2780–10 cord Step 1 emission limits for residential Two additional measurements at wood test method. Industry is hydronic heaters and forced air heaters approximately one-third the thickness conducting tests now using the cord would apply upon the effective date of shall be made centered between the wood test method, and we will consider the final rule. The Proposed Step 1 other three locations.’’ the results of that testing when it emission limits and the Alternative 10. We also propose this alternate becomes available during the public Approach Step 1 emission limits are procedure developed by Brookhaven comment period of this rulemaking. identical. The Alternative Step 2 National Laboratory: 18 ‘‘Select three emission limit for residential hydronic B. Central Heaters: Hydronic Heaters heaters and forced air heaters would pieces of cord wood from the same and Forced-Air Furnaces batch of wood as the test fuel and the apply 3 years after the effective date of same weight as the average weight of the The proposed subpart QQQQ would the final rule. The Alternative Step 3 pieces in the test load ± 1.0 lb. From apply to new wood-fired residential emission limit for residential hydronic each of these three pieces, cut three hydronic heaters and forced-air furnaces heaters and forced air heaters would slices. Each slice shall be 1⁄2″ to 3⁄4″ and any other affected appliance as apply 8 years after the effective date of thick. One slice shall be cut across the defined in subpart QQQQ as a ‘‘central the final rule (thus providing 5 years center of the length of the piece. The heater.’’ We believe this new ‘‘central between the Alternative Step 2 and the other two slices shall be cut half way heater’’ categorization will better ensure Alternative Step 3). The Proposed Step between the center and the end. that all appliances potentially affected 2 emission limits and the Alternative Immediately measure the mass of each under new proposed subpart QQQQ are Approach Step 3 emission limits are piece in pounds. Dry each slice in an included in this proposed action. The identical. We ask for specific comments oven at 220 °F for 24 hours or until no provisions of subpart QQQQ would on this Alternative Approach and the further weight change occurs. The slices apply to each affected unit that is degree to which these dates could be shall be arranged in the oven so as to manufactured or sold on or after April sooner. provide separation between faces. 4, 2014. This proposal does not include any requirements for heaters that are Table 5 summarizes the proposed PM Remove from the oven and measure the emissions standards that would apply mass of each piece again as soon as fueled solely by gas, oil or coal. In addition, this proposal does not include under this Proposed Approach at each practical in pounds. The moisture step. Table 6 summarizes the PM content of each slice, on a dry basis, any requirements associated with appliances that are already in use. The emissions standards that would apply shall be calculated as: under each step of the Alternative ¥ EPA continues to encourage state, local, MCslice = 100 · (WSliceWet WSliceDry)/ tribal and consumer efforts to changeout Approach. Similar to the proposed WSliceDry (replace) older heaters with newer, requirements for subpart AAA, we are Where: WSliceWet = weight of the slice cleaner, more efficient heaters, but that not proposing a standard for CO or before drying in pounds; WSliceDry = is not part of this federal rulemaking. efficiency, but we are proposing to weight of the slice after drying in As discussed earlier in this preamble, require manufacturers to collect and pounds; [and] MCSlice = moisture subpart QQQQ affects a source category report CO emissions and efficiency data content of the slice in % dry basis.’’ of mass-produced residential consumer during certification tests. Some 11. We propose to require two Step 1 products rather than typical industrial regulatory authorities have instituted tests, one using crib wood and one using processes. Thus, this proposed NSPS additional requirements such as limits cord wood and reasonable additional has many aspects that are similar to on visible emissions and limits on use non-binding tests with a range of fuels those in Subpart AAA, e.g., certification in non-heating seasons and we ask for for which the appliance is designed for of model lines and phased specific comments on the warranted and/or advertized operation. implementation. This Proposed appropriateness of such limits and other These tests are needed to show how Approach would apply to all new requirements in this NSPS.

18 ‘‘A Test Method for Certification of Cord Wood- (PM) and Carbon Monoxide (CO) Emissions and for NYSERDA by Brookhaven National Laboratory, Fired Hydronic Heating Appliances with Partial Heating Efficiency of Wood-Fired Hydronic Heating February 15, 2013. Thermal Storage: Measurement of Particulate Matter Appliances with Partial Thermal Storage.’’ Prepared

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TABLE 5—PROPOSED APPROACH SUBPART QQQQ PM EMISSIONS STANDARDS

Appliance Steps Particulate matter emissions limits

Residential Hydronic Heater ...... Step 1: Upon the effective date of the final rule ...... 0.32 lb/MMBtu heat output and a cap of 7.5 g/hr for individual test runs. Step 2: 5 years after the effective date of final rule ...... 0.06 lb/MMBtu. Forced-Air Furnace ...... Step 1: Upon the effective date of the final rule ...... 0.93 lb/MMBtu. Step 2: 5 years after the effective date of final rule ...... 0.06 lb/MMBtu.

TABLE 6—ALTERNATIVE APPROACH SUBPART QQQQ PM EMISSIONS STANDARDS

Appliance Steps Particulate matter emissions limits

Residential Hydronic Heater ...... Step 1: Upon the effective date of the final rule ...... 0.32 lb/MMBtu heat output and a cap of 7.5 g/hr for individual test runs. Step 2: 3 years after the effective date of final rule ...... 0.15 lb/MMBtu. Step 3: 8 years after the effective date of the final rule ...... 0.06 lb/MMBtu. Forced-Air Furnace ...... Step 1: Upon the effective date of the final rule ...... 0.93 lb/MMBtu. Step 2: 3 years after the effective date of final rule ...... 0.15 lb/MMBtu. Step 3: 8 years after the effective date of final rule ...... 0.06 lb/MMBtu.

Unlike the 1988 subpart AAA and procedures for a quality assurance from manufacturers, laboratories, and requirements, the subpart QQQQ process. Details of the PFI program are some states in order to quickly develop requirements would not provide an available at http://pelletheat.org/pfi- a mostly consensus-based method that additional time period for the sale of standards/pfi-standards-program/. Data we incorporated into the program unsold units manufactured before the show that quality assurance provisions partnership agreements. We used compliance date. No additional time is are necessary to ensure that the Method 28 for wood heaters/stoves as prudent because cleaner EPA-qualified appliances operate properly such that the foundation. Thus, Method 28 Phase 2 hydronic heaters systems have emissions are reduced as intended. We OWHH has many aspects similar to already been readily available for ask for specific comments on the use of Method 28. Three significant differences several years, the older systems have the PFI program and the PFI are: (1) Method 28 OWHH uses larger caused numerous complaints specifications, especially the degree to cribs because hydronic heater fireboxes nationwide, and this proposal which the PFI program will adequately are typically much larger than wood publication is ample notice for the ensure the absence of construction and heater fireboxes; (2) Method 28 OWHH remaining old high-emitting units. For demolition waste (and associated toxic uses red oak instead of Douglas fir the same reasons, the subpart QQQQ contaminants) in the pellets. (No other because red oak is the more common requirements would not include a small organization has volunteered to develop fuel in the U.S.; and (3) Method 28 volume manufacturer compliance such a quality program.) OWHH includes procedures for extension. See section V.C. of this The proposed labeling requirements determining 8-hour heat output and preamble for more discussion of this and owner’s manual requirements are efficiency. The manufacturers, topic. We ask for comments on the similar to the guidelines in the EPA’s laboratories, states and the EPA have timing for implementation. current voluntary hydronic heater now had over 7 years of experience with As in the current subpart AAA for program with some improvements. We Method 28 OWHH and its successor wood heaters/stoves, we are proposing a request specific comments on ways to Method 28 WHH (improved and list of prohibited fuels because their use improve the delivery of information on expanded to include indoor heaters, not would cause poor combustion or even the permanent label and in the owner’s just outdoor heaters). hazardous conditions. We request manual and whether different All the stakeholders that have comment on these requirements and information might be useful to the provided input on the test methods data to support additional requirements, consumer and to the regulatory agree that the methods should be if warranted. Also, as in the current authorities. thoroughly vetted and changed as subpart AAA for wood heaters/stoves, The structure of the rest of the necessary to improve the method’s we are proposing that the owner or proposed subpart QQQQ is similar to accuracy and precision and to address operator must not operate the hydronic the proposed subpart AAA certification concerns about how to best ensure heater or forced-air furnace in a manner and quality assurance process. We protection across the entire U.S. when that is inconsistent with the owner’s request specific comments on changes various operating scenarios and wood manual. For pellet-fueled appliances, or improvements to that process that species and densities are used. ASTM this proposal makes it clear that might be needed to address any special has developed E2618–13 to address operation according to the owner’s concerns related to the certification of some of these concerns, and the EPA manual includes operation only with hydronic heaters and forced-air believes that E2618–13 does include pellet fuels that have been used in the furnaces. some improvements. However, as with certification test and have been graded As discussed earlier, the EPA the wood heater/stove methods, we and and marked under a licensing agreement developed Method 28 OWHH, in 2006, some states do not agree with all the with the PFI, or equivalent (after request as part of our efforts for voluntary changes that ASTM has made. For and subsequent approval by the EPA), to qualification of cleaner hydronic example, the states of Washington and meet certain minimum requirements heaters. We received input at that time Oregon are very concerned that Method

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28 WHH and ASTM E2618–13 do not certification compliance testing using products are available at www.astm.org/ specify fueling with Douglas Fir, which both crib wood and cord wood for the epa. is used in EPA Method 28 for wood Step 1 emission limits upon the 1. Heater (aka Boiler) Temperature heaters/stoves and which these states effective date of the final rule and solely Range require in their regulations for cord wood for the Step 2 emission limits residential wood heaters, including 5 years after the effective date of the We propose that for all tests, the hydronic heaters. They are concerned final rule. return water temperature to the heater that hydronic heaters tested with red We are asking for specific comments must be 120 °F or greater. We oak will have higher emissions when on whether the EPA should use: (1) One additionally propose that if the fueled with Douglas Fir and other less or more of the draft versions of manufacturer specifies a thermal control dense species typical in their states and Appendix X2 being considered as part valve or other arrangement to be have provided test data that shows of ASTM work product WK26581; (2) installed and set to control the return higher emissions. Thus, they require the European Union test method temperature at 120 °F or higher, the testing with Douglas Fir in their states. EN303–05 as the Maine Department of valve must be installed and set per the Also, a number of states and the EPA are Environmental Protection approved for manufacturer’s written instructions. concerned about the ASTM changes to certification of hydronic heaters in their 2. Efficiency Calculations the burn rate categories, i.e., easing or state as equivalent to the EPA Method eliminating testing at the lowest burn 28 WHH; (3) the partial thermal storage We propose to require the use of rates, which often occur in home test method developed by Brookhaven thermopiles to measure the temperature operations and are typically the highest- National Laboratory; and/or (4) some change ‘‘delta T’’ and verify accuracy of emitting and least efficient. For several other test method(s). For use of any of the load side flow meter. The accuracy years, we have been communicating the test methods, the EPA would require of the flow meter is determined with European certification laboratories that the amount of heat storage for the separately by direct weighing of timed to learn how they conduct their tests actual sale and installation of the water collection. Thermocouples must under EN 303–5 and to consider if hydronic heaters be no less than the measure water temperature at the inlet incorporating some of their testing amount used for the certification tests. and outlet of the load side heat procedures might improve our test Because EN303–05 does not currently exchanger. We propose to delete the methods. use heat storage during the certification requirement for supply side flow More recently, because of initial test, if the EPA were to use EN303–05 measurements and require one load side concerns about some surprisingly high test results, the EPA would require the reading with thermopiles (using a laboratory test efficiencies for a couple installed heater to have heat storage that commercial system or a homemade of the EPA voluntary partnership can safely handle at least 60 percent of system). Efficiency would be measured program Phase 2 qualified partial heat the maximum heat output of the heater on the output (load) side of the heat storage models, the EPA, the Northeast or a greater level if the manufacturer exchanger. The flow meter would be states that regulate hydronic heaters, specifies a greater level. The EPA is calibrated before and after each test run laboratories (including EPA-accredited asking for specific comments on the within the flow range used for the test. laboratories and Brookhaven National appropriateness of this heat storage Laboratory) and manufacturers have level or other levels. The EPA will 3. Time Period for Recording conducted a review of voluntary consider any or all of these options as Temperatures partnership program qualifying test the preferred reference test methods or We propose that all water reports. All of the stakeholders that as acceptable emission testing temperatures, differential water provided input on the test methods alternatives. (ASTM previously temperatures and water flow rates must agree that we need a change in the test developed an Appendix X1 for testing of be recorded at time intervals of 1 minute method for testing of non-integral models that have ‘‘full’’ heat storage that or less. This data file must be submitted partial heat storage models (i.e., models can safely accept the heat from the full with the test report. For determination that have separate heat storage but the load of fuel.) We request comments on of heat output, the data for these storage does not have the capacity to all aspects of heater testing and are parameters must be measured in equal safely handle all the heat generated by especially interested in emission test time intervals no greater than 10 a full load of fuel). ASTM has been data that compare the results for testing minutes or at a frequency that results in leading an effort to develop an by these different methods. a minimum of 50 equal intervals per test Appendix X2 to the test method for Also, the review discussed above run, whichever is greater. such models but has not completed that found a number of areas in the methods 4. Test Fuel Moisture Content effort as of this proposal. Brookhaven to improve the quality of the data and National Laboratory recommended a reduce anomalies. In June 2011, the We propose that each individual test method to the New York State voluntary partnership program fuel moisture content reading must be in Department of Environmental stakeholders agreed to a number of the range of 18 to 28 percent on a dry Conservation (NYSDEC) and NYSDEC is changes to Method 28 OWHH, and we basis and the average moisture content requiring that method be used for are proposing the revised method as of each piece of test fuel must be in the certification of such models in their EPA Reference Method 28 WHH. The range of 19 to 25 percent. states. We are proposing that method be EPA is asking for specific comments on We also propose the following used for certification of the NSPS for this method and recommendations and moisture measurement procedure: Using hydronic heaters equipped with a supporting data for other changes or a fuel moisture meter as specified in the partial heat storage unit.19 acceptable alternatives. The following test method, determine the fuel Further, we are proposing revisions to paragraphs discuss some of the changes moisture for each test fuel piece used for Method 28 WHH that would require that we are proposing for comment. the test fuel load by averaging at least all affected non-pellet hydronic heaters, Additional information on the EPA five fuel moisture meter readings, one subject to new subpart QQQQ, conduct methods is available at http:// from each of three sides, measured www2.epa.gov/residential-wood-heaters. parallel to the wood grain. Penetration 19 See footnote 18. The ASTM methods and draft work of the moisture meter insulated

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electrodes must be one-fourth the 6. Calculations owner’s manual, and must remain the thickness of the fuel piece or 19 mm (3/ a. We propose that the electronic test same for all burn categories. 4 in.), whichever is less for 3 of the reports submittals include all data 11. Narrative measurements made at approximately 3 within the locked spreadsheets so the inches from each end and the center. The test report would be required to formulas used and relevant calculations Two additional measurements at include a statement that the test was can be reviewed in detail. approximately one-third the thickness conducted according to the method b. To ensure common application, we shall be made centered between the specified. If there are any deviations propose to require averages to be other three locations. We request from the test procedure requirements, calculated on each 10-minute reading specific comments on the moisture the test report would need to include a rather than averaging over the entire test content limits and the procedures for section identifying those deviations, the run. determining the moisture content and reasons for those deviations, and an the typical variances due to the 7. Overall Efficiency (CSA B415.1–10 evaluation of the data quality measurement procedures. Stack Loss Method) implications, if any, of such deviations We also request specific comments on on the test results. We propose that during each test run, the following approach for determining 12. The test report would include a moisture content. ‘‘Select three pieces of data must be obtained and presented for the purpose of calculation of overall standard summary page as a quick cord wood from the same batch of wood check for the reviewer that results are as the test fuel and the same weight as efficiency as specified in the stack loss method in CSA B415.1–10. This within method specifications. the average weight of the pieces in the 13. We propose to require testing with test load ± 1.0 lb. From each of these includes CO and CO2, flue gas temperature, and appliance mass a range of all fuels for which the three pieces, cut three slices. Each slice appliance is designed, per the 1 ″ 3 ″ (remaining fuel weight). Overall shall be ⁄2 to ⁄4 thick. One slice shall manufacturer’s warranty and owner’s be cut across the center of the length of efficiency for each run must be determined as per CSA B415.1–10 and manual, to show how emissions and the piece. The other two slices shall be efficiency vary according to species and cut half way between the center and the reported. Whenever the CSA B415.1–10 overall efficiency is found to be lower density and cord wood versus crib end. Immediately measure the mass of wood. each piece in pounds. Dry each slice in than the overall efficiency based on the In addition, ASTM has developed a an oven at 220 °F for 24 hours or until load side measurements, as determined draft test method that uses cord wood no further weight change occurs. The by this method, the report must include rather than crib wood to better represent slices shall be arranged in the oven so a discussion of the reasons for this real world conditions. All stakeholders as to provide separation between faces. result. agree that a test method that better Remove from the oven and measure the 8. Wood Loading represents real world conditions would mass of each piece again as soon as be a significant improvement and help practical in pounds. The moisture Test fuel loads would be determined content of each slice, on a dry basis by multiplying the firebox volume by ameliorate concerns that some heaters shall be calculated as: 4.54 kg (10 lb) of wood (as used, wet do not perform as well in home use as weight) per cubic foot, or a higher load they do in laboratories. We are also MCslice = 100 · (WSliceWet ¥WSliceDry) / density as recommended by the interested in real-time emission test WSliceDry manufacturer’s operating instructions. methods that measure cold or warm Where: WSliceWet = weight of the slice As discussed earlier, the EPA will startup emissions and emission peaks/ before drying in pounds; WSliceDry = durations. We are also interested in field weight of the slice after drying in require separate tests in the proposed Step 1 using cribs and using cord wood. test methods and less expensive test pounds; [and] MCSlice = moisture In the proposed Step 2, the tests would methods that regulators and neighbor content of the slice in % dry can use to better quantify impacts in the 20 all be using cord wood. There are basis.’’ real world. The EPA is asking for Also, we propose that moisture must ongoing discussions on how to improve specific comments and data on all these not be added to previously dried fuel both types of tests. We are working with potential methods, issues and pieces except by storage under high states and industry on a cord wood test recommendations. humidity conditions and temperature method and evaluating making revisions up to 100 °F. Fuel moisture must be to the current version of the ASTM cord The EPA is proposing to rely on the measured no more than 4 hours before wood test method and states’ ideas on test method that has been developed by using the fuel for a test. The test report cord wood testing. Also, we are the CSA for forced-air furnaces. All CSA must describe the source and storage reviewing European experiences with standards are developed through a history of the test fuel. cord wood testing. consensus development process approved by the Standards Council of 5. Water Density 9. Drawing of Test Apparatus Canada. This process brings together a. We propose that the measured The test report would be required to volunteers representing varied volumetric flow from the flow meter be contain a drawing of the test apparatus, viewpoints and interests to achieve converted to mass basis by using the including thermocouples, piping consensus and develop a standard. CSA water density based on water arrangements including any worked for years on development of this temperature. The same method must be recirculation loops, the thermopile and test method that has its roots in earlier used on both the load and supply side flow meter(s). U.S. efforts on wood heaters/stoves. The current version of CSA B415.1–10 was if the optional supply side meter is 10. Aquastat Settings used. published in March 2010, and it b. We propose that the water density Aquastat or other heater output includes not only the forced-air furnace be calculated using the water control device settings that are test method but also new Canadian temperature measured at the flow meter. adjustable would be set using emission performance specifications for manufacturer specifications, either as indoor and outdoor central heating 20 See footnote 19. factory set or in accordance with the appliances.

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Although the CSA B415.1–10 for Calculation Method for Custom industries affected by this proposed rule technical committee included numerous Designed, Site-built Masonry Heaters.’’ over this same period range from 4.3 U.S. manufacturers and laboratories, it (http://www.astm.org/ percent for manufacture of wood heater/ did not include any states or DATABASE.CART/WORKITEMS/ stove models to 6.4 percent compliance environmental groups, and the EPA WK26558.htm.) We propose that they be cost-to-sales estimate for manufacture of participation was minimal during the used for this rulemaking. We request single burn rate wood heater models. development. Now that we have specific comments on these methods These impacts do not presume any pass- reviewed this method in substantively, and any changes that should be through of impacts to consumers. With we are satisfied that it warrants proposal considered and supporting data for pass-through to consumers, these for this rulemaking. We request specific those changes. We request specific impact estimates to manufacturers will comments and supporting data. We ask comments and supporting emission test decline proportionate to the degree of for specific comments on the data on the use of ‘‘Annex A1. appropriateness of using the CSA test Cordwood Fuel’’ and ‘‘Annex A2. pass-through. method in its entirety, including the use Cribwood Fueling.’’ ASTM is allowing A. What are the air quality impacts? of cord wood instead of crib wood that public review, for no charge, of the are used in current versions of Method ASTM test methods and draft work To determine the air quality impacts, 28 and Method 28 WHH. To review the products relevant to this rule at we developed emission factors for each CSA test method, please go to www.astm.org/epa. appliance type and then applied those www.csa.ca. As an alternative to testing, we are emission factors to shipment data for proposing that manufacturers of C. Masonry Heaters each of the appliance types subject to masonry heaters may choose to submit the proposed NSPS.21 We developed the The proposed subpart RRRR would a computer model simulation program, emission factors using the EPA apply to new residential masonry such as ASTM WK 26558 noted above, Residential Wood Combustion (RWC) heaters. The provisions apply to each for the EPA’s review and approval. emission estimation tool,22 which is a affected unit that is manufactured on or Masonry heater manufacturers and Microsoft Access database that compiles after April 4, 2014. We are proposing laboratories developed computer nationwide RWC emissions using that, as of the effective date of the final simulations as a way to encourage good county-level, process-specific data and rule, no person would manufacture or designs without having to conduct sell a residential masonry heater that emission tests for slight variations, calculations. The compilation of such does not meet the proposed emission especially because there are so few data is a large, important, continually limit of 0.32 lb of PM per MMBtu heat masonry heaters built every year per improving effort by the EPA and the output. We are also proposing a 5-year manufacturer. Since these units are built states to ensure that we and the states small volume manufacturer compliance on-site, it is not easy to test each of have access to the best information extension that would apply to them. These units are typically cleaner available. We summed the estimated companies that construct fewer than 15 than pre-NSPS certified wood stoves. nationwide number of appliances and masonry heaters per year. See section Considering all of these factors, we the estimated total tons of wood burned V.C. of this preamble for more believe a simple computer simulation for each of the relevant product discussion of compliance date related showing how new models would categories in the inventory and then issues. We request specific comments perform may be all that is necessary for made some adjustments/assumptions to on the degree to which these dates can many of these models. the baseline RWC inventory to reflect be sooner. As in the case of subpart The structure of the rest of the emission characteristics specific to new AAA and subpart QQQQ, we are proposed new subpart RRRR is similar units. proposing requirements that would to the proposed subpart AAA apply to the operator of the masonry certification and quality assurance We used the resulting subset of the heater, including a provision to operate process and contains similar RWC database to calculate an average the unit in compliance with the owner’s requirements for labels, owner’s emission rate per appliance for each manual; a prohibition on use of certain manual, etc. One difference, however, is category, as follows. First, we fuels; and a requirement to use licensed that for small custom unit multiplied the total tons of wood wood pellets or equivalent, if manufacturers, we are requiring less burned by devices within the category applicable. We are not proposing stringent quality control (QC) by the category emission factor to efficiency or CO standards for new procedures. Specifically, we are calculate the total tons of emissions for residential masonry heaters at this time proposing that the initial certification each of the pollutants PM2.5, VOC and because sufficient data are not yet for these custom units is sufficient and CO emissions for that category. Then we available to support the basis for such that no further QC is necessary since divided these values by the number of standards. each unit is a unique model and subject appliances in the category to calculate The EPA is proposing to rely on to certification. We request comment on the average emissions of PM2.5, VOC and ASTM method E2817–11 for masonry changes or improvements that might be CO per individual appliance. We then heaters. The laboratories, some states needed to address special concerns developed adjusted emission factors to and the masonry heater industry worked related to certification of masonry reflect the NSPS options and then used for years on drafts of this method that heaters. the adjusted factors to calculate average has its roots in earlier regulatory efforts tons of emissions of each of these three in Colorado. The EPA has participated IV. Summary of Environmental, Cost, in the discussions from time to time Economic, and Non-Air Health and pollutants per appliance for each over the years and has provided Energy Impacts category. comments and suggestions. The current The EPA estimates the proposed ASTM methods are ASTM E2817–11 NSPS’s total annualized average 21 Memo to Gil Wood, USEPA, from EC/R, Inc. Estimated Emissions from Wood Heaters. February ‘‘Standard Test Method for Test Fueling nationwide costs would be $15.7 15, 2013. Masonry Heaters’’ and the draft work million ($2010) over the 2014 through 22 rwc_2008_tToolv4.1_feb09_2010.zip available product ASTM WK26558 ‘‘Specification 2022 period. The economic impacts for in the docket.

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We used data in the Frost & Sullivan and data that would support improved not included in the RWC emission Market (F&S) report 23 on 2008 projections. estimation tool. Because of the relatively shipments by product category and F&S The next step was to calculate the high cost of emission testing versus the revenue forecasts, which incorporated total emissions per appliance category. current small number of masonry the weak economy in years 2009 and First, we multiplied the emission factor heaters sold per manufacturer, and in 2010, to calculate the reduced number for each category by the inventory value total, there are few emission test data of shipments in years 2009 and 2010. of total tons of wood burned by all from masonry heater manufacturers and We adjusted these data to include appliances within that category, and laboratories. Based on the limited data appliances not covered in the F&S then divided by the number of we have, we believe that nationwide report (e.g., forced-air furnaces). For appliances in the inventory population. emissions from masonry heaters are years 2011 through 2038, we estimated The appliance value was then relatively low, given the low number of shipments based on a forecasted multiplied by the number of units sales. Thus, we also believe that the revenue growth rate of 2.0 percent, in shipped to calculate total emissions total emission reductions from masonry keeping with the average annual growth from each category per year using the heaters will be relatively low. However, in real gross domestic product (GDP) baseline conditions emission factors predicted by the U.S. Bureau of (i.e., in the absence of a revised NSPS). the limited data we have do show that Economic Analysis.24 Historically wood Using the same procedure, category the emission reductions could be heater shipments have most closely emissions were then calculated using significant for some models that do not corresponded to GDP, housing starts, the emission factors for the proposed follow current best designs, perhaps as and price of wood relative to gas. We NSPS. high as 70 percent for some designs. We think the overall trend in the projection Table 7 is a summary of the average do not know how many of these is reasonable in the absence of emissions reductions over years 2014 typically custom-made heaters already additional specific shipment through 2022 resulting from use best practice designs versus other projections. We did not change the implementing the proposed NSPS designs and thus we do not have relative percentages of one type of compared to baseline conditions (for the nationwide estimates of baseline residential wood heater versus other years analyzed in the RIA). Note that we emissions. We ask for comments and types of residential wood heaters over do not have national emission impacts data to help us prepare emission this time period. We ask for comments from masonry heaters because they are estimates.

TABLE 7—ESTIMATED ANNUAL AVERAGE (2014–2022) AIR QUALITY IMPACTS 25

PM2.5 (tons) VOC (tons) CO (tons) Appliance type Revised Emission re- Revised Emission re- Revised Emission re- Baseline NSPS duction Baseline NSPS duction Baseline NSPS duction

Wood Heaters 548 385 163 781 551 230 7,857 5,448 2,409 Single Burn Rate Heaters 932 178 754 1,614 244 1,370 7,029 2,860 4,169 Pellet Heaters/ Stoves ... 199 150 49 3 2 1 1,035 778 257 Furnace: Indoor, Cord Wood .... 3,044 434 2,610 1,290 184 1,106 20,294 2,896 17,398 Hydronic Heating Systems 1,332 84 1,249 565 35 530 8,883 557 8,326

Total .. 6,055 1,230 4,825 4,253 1,016 3,237 45,098 12,538 32,559 Note: This table only includes the emissions during the first year of the life of each wood heater. That is, this table does not include the emis- sions that continue for the duration of the lifetime of each appliance’s use, typically greater than 20 years.

B. What are the benefits? health co-benefits associated with million (2010 dollars) at a 3-percent reduced exposure to PM2.5 from directly discount rate and $1,700 million to Emission reductions associated with emitted PM2.5. Our benefits reflect the $3,700 million (2010 dollars) at a 7- the requirements of this rule will average of annual PM2.5 emission percent discount rate. Using alternate generate health benefits by reducing reductions occurring between 2014 and relationships between PM2.5 and emissions of PM2.5, HAP, as well as 2022 (inclusive). We estimate the premature mortality supplied by criteria pollutants and their precursors, monetized PM2.5-related health benefits including CO and VOC. VOC are of the proposed residential wood precursors to PM2.5 and ozone. For this heaters NSPS in the 2014–2022 rule, we were only able to quantify the timeframe to be $1,800 million to $4,100

23 Market Research and Report on North 24 2013 Global Outlook projections prepared by 25 See footnote 24. American Residential Wood Heaters, Fireplaces, the Conference Board in November 2012; http:// and Hearth Heating Products Market. Prepared by www.conference-board.org/data/globaloutlook.cfm. Frost & Sullivan. April 26, 2010, pp. 31–32.

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experts, higher and lower benefits benefits estimates for this rule at ask for emission and sales data per estimates are plausible, but most of the discount rates of 3 percent and 7 model that would help us prepare expert-based estimates fall between percent is in Table 8 of this preamble, emission reduction estimates and these two estimates.26 A summary of the except for masonry heaters. As corresponding monetized health emission reduction and monetized requested earlier in this preamble, we benefits for masonry heaters.

TABLE 8—SUMMARY OF MONETIZED PM2.5-RELATED HEALTH BENEFITS FOR PROPOSED RESIDENTIAL WOOD HEATERS NSPS IN 2014–2022 TIMEFRAME [millions of 2010 dollars] a, b, c

Estimated emission Total monetized benefits Total monetized benefits Pollutant reductions (3% discount rate) (7% discount rate) (tpy)

Directly emitted PM2.5 ...... 4,825 $1,800 to $4,200 ...... $1,700 to $3,700.

PM2.5Precursors

VOC ...... 3,250 — ...... — a All estimates are for the 2014–2022 timeframe (inclusive) and are rounded to two significant figures so numbers may not sum across rows. The total monetized benefits reflect the human health benefits associated with reducing exposure to PM2.5 through reductions of PM2.5 precur- sors, such as NOX, and directly emitted PM2.5. It is important to note that the monetized benefits do not include reduced health effects from ex- posure to HAP, direct exposure to NO2, exposure to ozone, VOC, ecosystem effects or visibility impairment. b PM benefits are shown as a range from Krewski, et al. (2009) to Lepeule, et al. (2012). These models assume that all fine particles, regard- less of their chemical composition, are equally potent in causing premature mortality because the scientific evidence is not yet sufficient to allow differentiation of effects estimates by particle type. c The emission reductions and monetized benefits for masonry heaters are not included in this summary.

These benefits estimates represent the average benefit-per-ton estimates reflect levels, which drive population monetized human health benefits for the geographic distribution of the exposure. populations exposed to less PM2.5 from modeled emissions, which may not It is important to note that the emission limits established to reduce air exactly match the emission reductions magnitude of the PM2.5 benefits is pollutants in order to meet this rule. in this rulemaking, and thus they may largely driven by the concentration Due to analytical limitations, it was not not reflect the local variability in response function for premature possible to conduct air quality modeling population density, meteorology, mortality. We cite two key empirical for this rule. Instead, we used a exposure, baseline health incidence studies, one based on the American ‘‘benefit-per-ton’’ approach to estimate rates, or other local factors for any Cancer Society cohort study 30 and the the benefits of this rulemaking. To specific location. More information extended Six Cities cohort study.31 In create the benefit-per-ton estimates, this regarding the derivation of the benefit- the Regulatory Impact Analysis (RIA) for approach uses a model to convert per-ton estimates for this category is this rule, which is available in the emissions of PM2.5 precursors into available in the technical support docket, we also include benefits changes in ambient PM2.5 levels and document, which is referenced in the estimates derived from expert another model to estimate the changes footnote below and is available in the judgments (Roman et al, 2008) as a in human health associated with that docket. characterization of uncertainty change in air quality, which are then These models assume that all fine regarding the PM2.5-mortality divided by the emissions in specific particles, regardless of their chemical relationship. sectors. These benefit-per-ton estimates composition, are equally potent in Considering a substantial body of were derived using the approach causing premature mortality because the published scientific literature, reflecting published in Fann et al. (2012),27 but scientific evidence is not yet sufficient thousands of epidemiology, toxicology, they have since been updated to reflect to allow differentiation of effects and clinical studies, the EPA’s these studies and population data in the estimates by particle type. Even though Integrated Science Assessment for 2012 p.m. NAAQS RIA.28 Specifically, we assume that all fine particles have Particulate Matter 32 documents the we multiplied the benefit-per-ton equivalent health effects, the benefit- association between elevated PM2.5 estimates from the ‘‘Residential Wood per-ton estimates vary between concentrations and adverse health Heaters’’ category by the corresponding precursors depending on the location effects, including increased premature 29 emission reductions. All national- and magnitude of their impact on PM2.5 mortality. This assessment, which was

26 Roman, et al, 2008. ‘‘Expert Judgment Health and Environmental Impacts Division. 31 Lepeule J, Laden F, Dockery D, Schwartz J Assessment of the Mortality Impact of Changes in December 2012. Available at http://www.epa.gov/ 2012. ‘‘Chronic Exposure to Fine Particles and Ambient Fine Particulate Matter in the U.S.,’’ pm/2012/finalria.pdf. Mortality: An Extended Follow-Up of the Harvard Environ. Sci. Technol., 42, 7, 2268–2274. 29 U.S. Environmental Protection Agency. Six Cities Study from 1974 to 2009.’’ Environ 27 Fann, N., K.R. Baker, and C.M. Fulcher. 2012. Technical support document: Estimating the benefit Health Perspect. Jul;120(7):965–70. ‘‘Characterizing the PM2.5-related health benefits of per ton of reducing PM precursors from 17 32 emission reductions for 17 industrial, area and 2.5 U.S. Environmental Protection Agency (U.S. sectors. Research Triangle Park, NC. January 2013. mobile emission sectors across the U.S.’’ EPA). 2009. Integrated Science Assessment for Environment International 49 41–151. 30 Krewski, C.A., III, R.T. Burnett, M.J. Thun, E.E. Particulate Matter (Final Report). EPA–600–R–08– 28 U.S. Environmental Protection Agency (U.S. Calle, D. Krewski, K. Ito, and G.D. Thurston. 2002. 139F. National Center for Environmental EPA). Regulatory Impact Analysis for the Final ‘‘Lung Cancer, Cardiopulmonary Mortality, and Assessment—RTP Division. December. Available on Revisions to the National Ambient Air Quality Long-term Exposure to Fine Particulate Air the Internet at http://cfpub.epa.gov/ncea/cfm/ Standards for Particulate Matter. EPA–452/R–12– Pollution.’’ Journal of the American Medical recordisplay.cfm?deid=216546. 003. Office of Air Quality Planning and Standards, Association 287:1132–1141.

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reviewed twice by the EPA’s Every benefit analysis examining the memo 34 and unit cost memo 35 in the independent Science Advisory Board, potential effects of a change in docket. Unless otherwise specified, all concluded that the scientific literature environmental protection requirements costs are in 2010 dollars. consistently finds that a no-threshold is limited, to some extent, by data gaps, To develop average R&D costs, we model most adequately portrays the PM- model capabilities (such as geographic reviewed information provided by mortality concentration-response coverage) and uncertainties in the manufacturers. Based on this 36 relationship. Therefore, in this analysis, underlying scientific and economic information, we estimated average the EPA assumes that the health impact studies used to configure the benefit and costs to develop a new model line, including testing, of 356,250 for function for fine particles is without a cost models. Despite these uncertainties, threshold. certified wood heaters and pellet we believe the benefit analysis for this In general, we are more confident in heaters/stoves. We also assumed the magnitude of the risks we estimate rule provides a reasonable indication of 356,250 for single burn rate wood the expected health benefits of the from simulated PM2.5 concentrations heaters, which may be high if currently that coincide with the bulk of the rulemaking under a set of reasonable available units can meet the standards observed PM concentrations in the assumptions. In addition, we have not without significant modifications as epidemiological studies that are used to conducted air quality modeling for this some manufacturers have suggested. We estimate the benefits. Likewise, we are rule, and using a benefit-per-ton also assumed development costs for less confident in the risk we estimate approach adds another important source forced-air furnaces and hydronic heaters from simulated PM2.5 concentrations of uncertainty to the benefits estimates. of 356,250. Finally, we also assumed that fall below the bulk of the observed The 2012 PM2.5 NAAQS benefits development costs of 356,250 for the data in these studies. Concentration analysis provides an indication of the masonry heaters. The estimates of the benchmark analyses (e.g., lowest sensitivity of our results to various cost of R&D are crucial to our estimates measured level [LML] or one standard assumptions. of overall costs and economic impacts deviation below the mean of the air and greatly influence our decisions on One should note that the monetized quality data in the study) allow readers BSER, implementation lead times and benefits estimates provided above do to determine the portion of population small volume provisions. Thus, we not include benefits from several exposed to annual mean PM2.5 levels at request specific comments on these or above different concentrations, which important benefit categories, including estimates, including whether they provides some insight into the level of exposure to HAP, VOC and ozone should be reduced and thus allow uncertainty in the estimated PM2.5 exposure, as well as ecosystem effects greater emission reductions sooner. mortality benefits. There are and visibility impairment. Although we We annualized the R&D costs over 6 uncertainties inherent in identifying any do not have sufficient information or years, applied the NSPS implementation particular point at which our confidence modeling available to provide assumptions, and estimated the average in reported associations becomes monetized estimates for these benefits manufacturing cost per model line per appreciably less, and the scientific in this rule, we include a qualitative manufacturer. Under the proposed evidence provides no clear dividing assessment of these unquantified rules, pellet heaters/stoves will only line. However, the EPA does not view benefits in the RIA 33 for this proposal. face certification (testing) costs (no R&D should be required), so we estimated these concentration benchmarks as a For more information on the benefits concentration threshold below which certification costs of 10,000 per model analysis, please refer to the RIA for this we would not quantify health benefits of line. Similarly, many masonry heater rule, which is available in the docket. air quality improvements. model lines that would comply with the For this analysis, policy-specific air C. What are the cost impacts? proposed standards have already been quality data are not available. Thus, we developed. These manufacturers would are unable to estimate the percentage of In analyzing the potential cost also face certification costs of 10,000 per premature mortality associated with this impacts of the proposed NSPS, we model line. We estimated post R&D specific rule’s emission reductions at considered two types of impacts. The period certification costs for hydronic each PM2.5 level. As a surrogate measure first was the impact to the manufacturer heaters and forced-air furnaces at 20,000 of mortality impacts, we provide the to comply with the proposed standards. per model line. percentage of the population exposed at The second was the increase in price of The masonry heater compliance costs each PM2.5 level using the source the affected unit. In both of these cases, included implementation of a software apportionment modeling used to we considered the same input variables: package based on a European masonry calculate the benefit-per-ton estimates R&D cost to develop and certify heater design standard. This software for this sector. Using the Krewski, et al, complying model lines, certification has been verified in the laboratory and under field conditions to produce (2009) study, 93 percent of the costs (where these are separate from population is exposed to annual mean masonry heaters that would meet the R&D), reporting and recordkeeping PM levels at or above the LML of 5.8 proposed NSPS emission limits. The 2.5 costs, numbers of shipments of each mg/m3. Using the Lepeule, et al, (2012) cost of this software to the user is study, 67 percent of the population is appliance category (modified, from approximately $1,500 for the package exposed above the LML of 8 mg/m3. It Frost & Sullivan report), number of with an approximately $450 annual fee is important to note that baseline manufacturers, and number of models exposure is only one parameter in the per manufacturer. This section of the 34 Memo to Gil Wood, USEPA, from EC/R, Inc. health impact function, along with preamble contains a summary of these Residential Heater Manufacturer Cost Impacts. costs. For more detailed information, February 22, 2013. baseline incidence rates, population, 35 Memo to Gil Wood, USEPA, from EC/R, Inc. and change in air quality. Therefore, see the manufacturer cost impact Unit Cost Estimates of Residential Wood Heating caution is warranted when interpreting Appliances. February 21, 2013. the LML assessment for this rule 36 In developing average R&D costs, the EPA used the highest industry R&D estimates supplied, in because these results are not consistent 33 Regulatory Impact Analysis (RIA) for order to avoid under-estimating potential costs per with results from rules that had air Residential Wood Heaters NSPS. [INSERT DATE model line and to avoid understating the number quality modeling. RULE IS SIGNED]. of model lines that would undergo R&D nationwide.

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that commences in the second year product offerings. For numbers of analyzed in the RIA,37 as well as over following purchase. In addition, we manufacturers, we started with HPBA the 2013 to 2038 period. The 2013 to believe that some manufacturers will data and modified the dataset based on 2038 period encompasses the first year use this approach to demonstrate that Internet searches of manufacturers of of estimated NSPS-related costs (2013 ‘‘similar’’ model designs meet the the major appliance types. Table 9 is a since some companies have already proposed emissions standards. summary of the nationwide average started in anticipation of the NSPS) The estimate of the number of model annual NSPS-related cost increases to through the life span of models types was derived from information manufacturers. The average annual cost designed to meet the NSPS, as provided by HPBA, individual increases are presented over the 2014 to explained further below and in our manufacturers, and Internet searches of 2022 period consistent with the years background analyses.38

TABLE 9—SUMMARY OF NATIONWIDE AVERAGE ANNUAL COST INCREASES [2010$]

2014–2022 2013–2038 Appliance Type Period Period

Wood Heaters ...... $4,212,303 $1,749,726 Single Burn Rate Heaters ...... 901,732 456,316 Pellet Heaters/Stoves ...... 3,460,489 1,702,796 Forced-Air Furnaces ...... 2,252,284 1,171,222 Hydronic Heating Systems ...... 4,554,152 2,221,551 Masonry Heaters ...... 307,511 228,896

Total Average Annual Cost ...... 15,688,471 7,530,507

To develop estimates of potential unit expensive structural materials, Our next step was to develop the cost increases, we used major variables components to enhance good following incremental cost formula: including the estimated number of units combustion, etc. We estimated the Cost of R&D multiplied by number of shipped per year, the costs to develop following additional manufacturer price units shipped per year divided by new models, baseline costs of models, increases per unit based on appliance number of models multiplied by model and the schedule by which the proposed type: life equals the incremental cost of revised NSPS would be implemented. • Certified wood heaters and pellet developing a new unit, spread over the Both the number of shipped units and heaters/stoves represent a well- number of units expected to be sold the baseline costs of models were based developed technology, and we could not during the model life. In developing this on data from the Frost & Sullivan report identify price differences between calculation, we included the concept with modifications to address additional models due solely to lower emission that the R&D costs per model line are appliances or subsets of appliances. The levels compared to models with higher recovered in the sales price of future 20-year model design life span and 20- emission levels. Rather, price models, which means that the more year use/emitting appliance life span are differences are more closely related to units that are sold or the longer the based on actual historical design cosmetic differences and output. model life, the lower the incremental certification and heater use data. That Therefore, we have assumed no cost per unit. For our unit cost analysis, is, the data show that many models additional manufacturing costs. we assumed a flat growth rate in developed for the current 1988 NSPS • One manufacturer estimated that it shipments—that is, we assumed future are still being sold (after 25 years), many will cost an average of 100 more to shipments over the 20 years of model ‘‘new’’ models still have the same manufacture a lower emitting single internal working parts with merely burn rate product. design life would be equal to the exterior cosmetic changes, and most • We have seen a range of estimates shipments estimated in the first NSPS residential wood heaters in consumer for additional price increases for compliance year. We did not assume homes emit for at least 20 years and manufacture of a cleaner hydronic lower sales due to market competition often much longer. Therefore, our heater, with an average being with other wood heaters or non-wood analysis tracks shipments and costs approximately 3,000 (as compared to a heaters. We did not assume lower through year 2038 (i.e., 19 years after a typical pre-regulation sales price of projected sales for increased prices model designed to meet the NSPS Step 7,500). because of the uncertainty of other 2 emission limits expected to be • We estimate that the additional demand factors. Where there are implemented in 2020 has completed price increases to manufacture a additional manufacturing costs as development and is shipped). Finally, certified forced-air furnace will be discussed above, we added these to the we also estimated the potential comparable to the price increases for unit cost number. Table 10 is a additional manufacturing costs to make manufacturing certified hydronic summary of the baseline unit costs, NSPS complying models. These heaters, i.e., $3,000 (as compared to a NSPS unit costs, and incremental cost expenses result from the use of more typical pre-regulation price of $900). increase.

37 See footnote 36. 38 Memo to Gil Wood, USEPA, from EC/R, Inc. Residential Heater Cost Effectiveness Analysis. February 26, 2013.

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TABLE 10—SUMMARY OF UNIT COST IMPACTS [2010$]

Incremental in- Appliance type Baseline Post-NSPS crease

Certified Wood Heaters ...... $859 $883 $24 Single Burn Rate Heaters ...... 253 479 226 Pellet Heaters/Stoves ...... 1,295 1,319 24 Forced-Air Furnaces ...... 912 4,174 3,262 Masonry Heaters ...... 9,157 9,245–9,997 88–840 Hydronic Heating Systems ...... 7,528 13,986 6,458

We request specific comments on on how these social costs are estimated appliances that are currently on the these estimates, which significantly can be found in Chapter 5 of the RIA. market. Numerous states (e.g., Vermont, affect the estimates of costs per model New York, Maine, Michigan, Minnesota) E. What are the non-air quality health lines and per unit sold and potential have indicated to us that individuals’ and energy impacts? changes in sales and, thus, affect concerns about smoke from residential decisions on the affordability of These proposed NSPS are anticipated wood burning, particularly by hydronic candidate BSER. For example, if the to have no impacts or only negligible heaters, are the top source of number of model lines was less and the impacts on water quality or quantity, environmental complaints. In the case number of heaters per model line was waste disposal, radiation or noise. To of masonry heaters, we believe EPA greater, then the cost per unit sold the extent new NSPS models are more certification of these typically cleaner would be less and more stringent efficient, that would lead to reduced devices, would allow them to be options for BSER could potentially be wood consumption, thereby saving excellent emission reduction implemented sooner. timber and preserving woodlands and alternatives to replace pre-NSPS wood vegetation for aesthetics, erosion heaters and be a good consumer D. What are the economic impacts? control, carbon sequestration, and alternative in parts of the country that The economic impacts of the ecological needs. currently ban uncertified appliances proposed rule are estimated using It is difficult to determine the precise (contingent upon approval by the local industry-level estimates of annualized energy impacts that might result from jurisdiction). We also saw a need to compliance cost to value of shipments this proposed rule. On the one hand, to address the residential heating market (receipts) for affected industries. In this the extent that the NSPS wood-fueled in a way that recognizes that some case, cost-to-receipts ratios approximate appliance is more efficient, energy heaters and fuels are substitutes for each the maximum price increase needed for outputs per mass of wood fuel other. Regulating only one type of heater a producer to fully recover the consumed will rise. However, wood- may result in unintended incentives for annualized compliance costs associated fueled appliances compete with other consumers to favor purchase and use of with a regulation. Essentially, the biomass forms as well as more unregulated and potentially higher revenues to producers will likely fully traditional oil, electricity, and natural emitting devices. We felt a cover the annualized compliance cost gas. We have not determined the comprehensive assessment was needed. incurred by producers at this maximum potential for consumers to choose other Therefore, as part of the NSPS review price increase. Any price increase above types of fuels and their associated process, we evaluated a wide range of the cost-to-receipts ratio provides appliances if the consumer costs of residential biomass heating devices and revenues that exceed the compliance wood-fueled appliances increase and at non-heating devices (such as cook costs. These industry level cost-to- what level that increase would drive stoves and fireplaces) to determine what receipts ratios can be interpreted as an consumer choice. Similarly, we have expansions in scope might be needed.39 average impact on potentially affected not determined the degree to which The residential wood heaters NSPS is firms in these industries. Cost-to- better information on the energy a ‘‘standard of performance’’ as defined receipts ratios for the affected product efficiency of the NSPS appliances will by section 111(a) of the CAA. The term types range from 2.3 percent for pellet encourage consumers to choose new ‘‘standard of performance’’ means a heaters/stoves up to 6.4 percent for wood-fueled appliances over other new ‘‘standard for emissions of air pollutants single burn rate wood heaters for the appliances. which reflects the degree of emission proposed option. More information on V. Rationale for Proposed Amendments limitation achievable through the how these impacts are estimated can be application of the best system of found in Chapters 5 and 6 of the RIA. A. Why are we proposing to expand the emission reduction which (taking into In estimating the net benefits of scope of appliances subject to the account the cost of achieving such regulation, the appropriate cost measure NSPS? reduction and any non-air quality health is ‘‘social costs.’’ Social costs represent As described in section II, the EPA and environmental impacts and energy the welfare costs of the rule to society. has had ongoing discussions with many requirements) the Administrator We believe that the social costs are best stakeholders regarding the need to determines has been adequately approximated by the compliance costs expand the scope of the current demonstrated.’’ As discussed earlier, the estimated for this rule. Thus, the residential wood heater regulation. level of control prescribed by section annualized social costs for this proposal Stakeholders described adverse health 111 historically has been commonly are best estimated to be $15.7 million and environmental impacts arising from referred to as ‘‘Best Demonstrated for the proposed option, based on the the increasing use of some appliances, estimate of costs to manufacturers for actions taken at the state and local 39 Subpart AAA—Standards of Performance for New Residential Wood Heaters: Revised Draft the proposal and assuming no cost pass- levels to address such concerns, and Review Document. Prepared for EPA by EC/R through to consumers. More information growth in types and numbers of Incorporated. December 30, 2009.

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Technology’’ or BDT. To better reflect For certain types of devices, www.epa.gov/burnwise/ that section 111 was amended in 1990 information is lacking. For example, we participation.html#fireplace. We request to clarify that ‘‘best systems’’ may or have no information or very limited comments and additional data on may not be ‘‘technology,’’ the EPA is information on emissions and emission contributions to air quality, now using the term ‘‘best systems of reduction techniques for cook stoves, endangerment of public health and emission reduction’’ or BSER. As pizza ovens, chimineas, coal stoves and welfare, emissions, potential emission previously with BDT, in determining biomass (other than wood or wood reductions, costs, prices, and sales of BSER, the EPA uses available pellet) stoves/furnaces (e.g., fueled with fireplaces. We request data that might information and considers the emissions grass, corn, cherry pits). We are help us potentially develop new or reductions and incremental costs for interested in receiving data for revised national programs or a source different systems available at reasonable contributions to air quality, category listing and standards under cost. The residential wood heaters endangerment of public health and section 111(b) for these devices in the source category is mass-produced welfare, emissions, potential emission future. We are especially interested in residential consumer products, reductions, costs, prices, and sales of data on current and projected sales of fundamentally different from the typical coal stoves and biomass stoves because new wood-burning fireplaces versus gas-fired fireplaces, current and NSPS source category that regulated we believe we do not have sufficient projected usage patterns for new industrial processes. Thus, for the information at this time to list these fireplaces versus existing fireplaces, residential wood heaters source category sources under section 111(b) and develop proposed standards. For current and projected quantities of important elements in determining wood burned per existing and new BSER include the significant costs and example, usage rates of some of these appliances are limited both in numbers fireplaces, current and projected best environmental impacts of delaying systems of emission reduction for new production and sales while models with of new units and in the number of markets they occupy. Also, some fireplaces versus existing fireplaces and those systems are being designed, stakeholders have stated that use of coal costs of current and projected best tested, field evaluated, and certified. stoves is more common in some coal systems versus current costs of The EPA determines the appropriate mining regions, where the consumer fireplaces. Also, we are interested in emission limits representative of BSER. may have access to free or cheap coal, national data and how these data vary After the emission limits are but such stoves are not typically used in by state and local areas. established, in general, the source may other areas. We request data on any of use whatever systems meet the emission B. How did we determine BSER and the these appliances that might help us proposed emission standards? limits. In developing the proposed rule, potentially develop national programs As discussed earlier in this preamble, we evaluated possible systems both at or standards for these devices in the the proposed subparts AAA, QQQQ, baseline conditions (conditions in the future. absence of additional regulation) and and RRRR recognize that the sources We are also deferring any regulatory under other scenarios. In most cases, covered by these subparts are action addressing emissions from wood- candidate BSER for residential wood fundamentally different from the typical burning fireplaces at this time. heaters is based on improved NSPS source category in that residential Fireplaces typically are not designed to combustion techniques, primarily wood heaters are mass-produced be ‘‘wood heaters’’ and thus are not improvements in model-specific residential consumer products whereas within the current scope of the most NSPS regulate industrial combinations of time, temperature, and ‘‘residential wood heater’’ source turbulence. That is, the improved processes. Discussions in sections V.B.1 category listed on February 18, 1987, through V.B.4 of this preamble focus on combustion models have greater airflow pursuant to the authority of section residence time, better insulation to the analysis of PM emission reductions 111(b). (Fireplaces are typically used for under our proposed two-step phased-in increase temperatures, and passageways ambience and most of the heat content standards for each appliance type and directed flows to improve mixing of the wood is lost out the chimney with affected by this proposal. In general, for and turbulence. In addition, some the relatively large amounts of excess this rulemaking, we have determined heaters also use catalytic combustors to combustion air rather than heating the that the proposed first step represents reduce emissions. Each manufacturer room. For effective heating, some the emission levels that almost all has a potential myriad of combinations homeowners have inserted a new EPA models can readily achieve now using of specific designs that could certified wood stove into an otherwise today’s designs and technology. Further, incorporate these key aspects. Many open masonry fireplace. In those cases, we have determined that the proposed systems reduce emissions significantly, new wood heaters/stoves are regulated second step represents stronger increase efficiency, and provide good under the current 1988 rule and would emission levels achievable for all operator flexibility. The key differences be regulated by this proposal. Also, appliance types at reasonable cost, but tend to be confidential business some fireplaces have restricted excess allows appropriate lead times for information as to the specifics of the combustion air to less than 35:1 air-to- manufacturers to redesign their model combination that the manufacturer uses fuel ratio and are certified under the lines to accommodate the improved and does not share with other current 1988 NSPS.) Fireplaces are technology across multiple model lines manufacturers but rather holds as addressed in the current EPA voluntary and test, field evaluate, and certify the proprietary. Similarly, the industry partnership program that encourages the new model lines. See section V.B.5 for trade association cannot facilitate development and sale of lower-emitting a discussion of the Alternative exchange of such information because of wood-burning fireplaces over the sale of Approach we considered to reduce PM antitrust regulations. Because each higher-emitting fireplaces. The EPA’s emissions based on three-step phased-in appliance type has a potentially unique fireplace program covers new masonry standards, under which the strongest emissions profile, market niche, and and prefabricated (low-mass) fireplaces emission standard would be 8 years manufacturer profile, we made BSER and retrofit devices for existing after the effective date of the final rule determinations for each heater type, as fireplaces. See the voluntary partnership rather than the proposed 5 years. described below. program Web site for more information: Section V.B.6 discusses other provisions

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we considered and for which we request span of 20 years is supported by the Table 11 presents our estimated additional data and information from historical data that show that the non- cumulative costs, PM2.5 emission commenters. cosmetic aspects of wood heaters reductions, and associated cost per ton For these source categories, our BSER designed to meet the 1988 NSPS are still for our proposed limits, based on a determination rests on: (1) the being used today in some model lines. model design life span of 20 years and achievability of the proposed emission While some manufacturers may choose an appliance emitting life span of 20 levels (i.e., the fact that top-performing to make more frequent cosmetic changes years. models for each appliance type are to their models, the internal design already achieving the proposed For all of the standards proposed in changes a manufacturer must make to a emission levels); and (2) the cost this Federal Register notice, the EPA wood heater model line to comply with effectiveness of the proposed standards invites specific comments on the data when considering the design life span the NSPS are longer lasting. and analyses on which we base the and the emitting life span of the Furthermore, once installed in proposed standards. Moreover, the EPA appliances in residences. The net consumer homes, wood heaters emit for invites specific comments that provide monetized benefits of the proposal far at least 20 years and many are operated additional data and analyses that would exceed the costs for all options in residences for much longer time support a different standard. Interested considered. Realistic model design and periods (a key fact motivating wood persons should note that the EPA will appliance emitting life span heater/stove changeout programs). Once consider promulgating a more stringent assumptions are essential components purchased, consumers tend to only or less stringent standard than what we for a meaningful cost effectiveness replace appliances when they no longer are proposing for any of these analysis. As explained above in section serve their functional purpose. Wood categories, if the record contains data or IV.C. and in our background heaters tend to serve the basic function analyses that support a different documentation,40 a model design life of producing heat for well over 20 years. standard.

TABLE 11—COST EFFECTIVENESS OF PM2.5 EMISSION REDUCTIONS OF PROPOSED STANDARDS AND EMISSION CO- REDUCTIONS BASED ON CUMULATIVE ANALYSIS [2013–2057] 41

PM2.5 reductions VOC Co-Reductions CO Co-Reductions Nationwide cumulative Cumulative Cumulative Cumulative Appliance type cost emission Cost per ton emission Cost per ton emission Cost per ton (2010$) reduction (2010$) reduction (2010$) reduction (2010$) (tons) (tons) (tons)

Cord Wood Stoves ...... $45,492,874 96,523 $471 136,293 $334 1,426,240 $32 Single Burn Rate Stoves ...... 11,864,204 236,254 50 416,828 28 1,602,218 7 Pellet Stoves ...... 44,272,694 29,269 1,513 392 112,894 152,082 291 Furnaces ...... 30,451,763 823,770 37 349,207 87 5,491,797 6 Hydronic Heaters ...... 57,760,316 360,587 160 152,858 378 2,403,916 24

Total * ...... 189,841,851 1,546,403 123 1,055,578 180 11,076,253 17 * NOTE: Masonry Heaters are not included in this analysis because representative emission tons per appliance could not be determined.

1. Room Heaters hr. The definition and test methods had (sometimes called fireplace inserts). the effect of excluding a large number of These units were the primary focus of The current subpart AAA definition single burn rate wood heaters. As the 1988 NSPS and are subject to of ‘‘wood heater’’ specifies certain described below, we are proposing to current NSPS limits of 7.5 g/hr for conditions, including that affected change the applicability of subpart AAA noncatalytic heaters and 4.1 g/hr for sources are those that have an air-to-fuel to include all three types of ‘‘room catalytic heaters. As discussed in the ratio of less than 35:1. As part of the heater’’ appliances: adjustable burn rate February 26, 1988, final rule (53 FR regulatory negotiation for the current wood heaters, pellet heaters/stoves and 5865) and earlier in this preamble, the 1988 NSPS, the EPA included the air-to- single burn rate wood heaters. Our EPA considered the performance of fuel criterion in the rule primarily to intent is that this rule will be stated in catalytic heaters and noncatalytic exclude typical fireplaces from the broad enough terms to regulate any heaters co-BDT (now called BSER) affected source definition. An future room heater appliances that may because the net emissions over time unintended side effect, however, is that come into the U.S. market and function were estimated to be similar (even it also resulted in the exclusion of the as room heaters. though the initial certification test majority of pellet heaters/stoves. Also a. Adjustable Burn Rate Wood Heaters results are typically lower for catalytic included in the current 1988 NSPS models) assuming possible degradation definition of ‘‘wood heater’’ is an Adjustable burn rate wood heaters of the catalyst and lack of catalyst exclusion of heaters that have a include freestanding heaters and heaters replacement by the operator. The EPA minimum burn rate of greater than 5 kg/ modified to fit within a firebox considered requiring catalyst

40 See footnotes 24, 36 and 38. emission-related components of a model designed costs per ton are calculated independently for 41 Analysis period assumes that manufacturers to meet the proposed Step 2 emission limit will be illustrative purposes, even though VOC and CO will incur R&D costs beginning in 2013, in manufactured/shipped for 20 years, and shipped reductions would actually occur with no additional anticipation of final rule. Analysis is 2013 through models will emit in residences for another 20 years. cost as the PM2.5 reductions are achieved. 2057, based on assumption that the internal See footnotes 24, 36 and 38. PM2.5, VOC and CO

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replacement on a regular schedule, but any differences between crib wood and standards and ensuring that the determined that enforcement of such a cord wood. remaining 15 percent of non-complying requirement would be difficult. The This source category is fundamentally adjustable burn rate wood heater models EPA did require manufacturers to different from the typical NSPS source could no longer be sold. It would also provide 2-year unconditional warranties category composed of industrial ensure that wood heater/stove on the catalysts and prohibited the processes. This source category involves changeout programs aimed at reducing operation of catalytic heaters/stoves the manufacture and sale of mass- emissions from old, pre-NSPS or pre- without a catalyst. Additionally, produced residential consumer products state of Washington heaters/stoves because of these concerns, the EPA that are significantly affected by would result in replacement models that wanted to ensure that further production and sales volumes and meet the state of Washington levels or development of both noncatalytic and timing of testing and certification. Thus, better. catalytic technology would continue. we are proposing implementing the The proposed Step 1 limit eliminates Since the 1988 NSPS was developed, proposed Step 2 BSER emission limit 5 the distinction between catalytic and years after the effective date of the final the state of Washington issued non-catalytic heater models, which we standard to allow for longer lead times standards in 1995 imposing limits of 4.5 view as progress. It is important to for redesign, testing, field evaluation g/hr for noncatalytic heaters and 2.5 g/ remember that the lower emission level and certification. This also spreads the hr for catalytic heaters. In developing catalytic standards were initially costs over a longer time and a larger the proposed revisions to the NSPS, we instituted because of concerns that the number of units. The intent behind the evaluated and identified these early generation catalysts would proposed Step 2 BSER emission limit is ‘‘improved’’ catalytic and noncatalytic degrade over time, resulting in eventual to recognize that current state-of-the-art systems and associated emission levels real world emission levels comparable level of performance appears to be as the proposed Step 1. This analysis to non-catalytic units. After 25 years of significantly better than the state of showed that the state of Washington catalyst heater development experience, Washington limit of 4.5 g/hr met by over manufacturers have demonstrated that level of 4.5 g/hr is achieved by 107 out 85 percent of the heaters sold today on of 121 (88 percent) of the EPA-certified the performance of these heaters a sales-weighted basis (i.e., 92 out of 106 typically remains consistently good over adjustable burn rate wood heater models noncatalytic models and 15 out of 15 in production and sold in the U.S. today the course of proper operation because catalytic models), and furthermore of changes manufacturers have made to (noncatalytic and catalytic models better than the state of Washington combined). This statistic includes 92 of improve heater design to protect the catalytic limit of 2.5 g/hr for over 25 catalysts from flame impingement and the 106 certified noncatalytic wood percent of the adjustable burn rate wood heater models (87 percent) and 15 of the other factors that previously caused heaters sold in the U.S. today (i.e., 20 catalysts to degrade significantly. For 15 certified catalytic models (100 out of 106 or approximately 19 percent percent). The median certification value example, one recent study of four of noncatalytic models and 13 out of 15 catalytic combustors from the two for noncatalytic models was 3.2 g/hr or approximately 87 percent of catalytic and for all certified models was 3.4 g/ selected heaters/stoves showed that the models). As noted earlier and discussed combustors maintained substrate hr. Details of the analysis are in the more fully in the paragraphs below, our docket.42 integrity without substantial PM decisions on BSER for this source emissions performance reduction.43 For the proposed Step 2 (5 years after category have fully considered not only Therefore, establishing a separate limit the effective date of the final standard), the emission performance but also the to accommodate ‘‘degradation’’ seems to we considered ‘‘state-of-the-art’’ systems cost and economic impacts, including create a distinction where none exists that achieve a certification value of 1.3 the costs to accommodate the best and adds unnecessary confusion to the g/hr (using crib wood as the test fuel as systems in additional model lines. The overall regulation. specified in Method 28 as required by net monetized benefits far exceed the We recognize that there may be the 1988 NSPS). This is approximately costs of all options considered. concern that a single limit based on the 50 percent less than the 1995 state of The cost impacts of the proposed Step Washington State non-catalytic limit 1 are very small. This is because, Washington standard for catalytic could result in ‘‘backsliding’’ of current despite being a limit that was originally models (2.5 g/hr). The EPA certification catalytic heater models. We think that developed for only one state, over 85 test data show that a level of 1.3 g/hr is the likelihood of actual backsliding is percent of currently EPA-certified non- achieved by 27 adjustable burn rate extremely low because of other factors catalytic and catalytic heaters that are in wood heater models as of December driving the wood heater market. Given active production already meet the state 2013. This includes 11 certified the pending implementation of the of Washington initial certification test noncatalytic wood heater models and 16 proposed Step 2 limits described below values. We also believe production of certified catalytic models. There were and that some manufacturers have any certified heaters that do not meet no apparent break points other than the heaters that already achieve Step 2, all the proposed Step 1 standard would be current state of Washington initial manufacturers would have market certification level of 4.5 g/hr for discontinued, as manufacturers would likely focus on models that already incentives to improve performance as noncatalytic heaters. That is, the soon as possible rather than degrade distribution of certification values was comply with the proposed standard in the short term. While implementing the performance. Also, with consumer relatively linear with no step functions education regarding the impacts of PM other than at the state of Washington proposed Step 1 standard would not impose any significant additional costs emission levels, we believe that level of 4.5 g/hr. We ask for comments consumer pressure will favor better and emission test data using cord wood on most of the manufacturers, it also would not achieve a large amount of performing units that in general are to help us determine if the proposed more energy efficient and lower emission levels should be adjusted for new emissions reductions for most of the models. However, implementing an 43 The Interim Wood Stove Catalytic Combustor 42 Attachment A of Residential Wood Heaters emission standard associated with the Longevity Study, Prepared for the Catalytic Hearth Manufacturer Cost Memorandum to Gil Wood, proposed Step 1 would have the benefit Coalition by L. Pitzman et al, OMNI Environmental USEPA, from EC/R Inc. February 22, 2013. of ensuring consistent nationwide Services. January 4, 2010.

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emitting at reasonable cost, especially as nationwide annual PM2.5 emissions, laboratory proficiency test data, may be they compare wood heaters and gas averaged over this same period (2014– poor based on the scope of their heaters. However, we are requesting 2022), are projected to be 548 tons/year analysis. Their analysis stated: comments on whether we should under baseline conditions versus 385 • ‘‘At the 95-percent confidence level, maintain a separate, lower limit for tons/year under the proposed two-step repeatability for the EPA weighted catalytic heater models for the proposed BSER, an average reduction of 163 tons/ average emission rate is at best ±2.9 g/ Step 1 emission limits, based on the year, considering only the first year of hr and ranged as high as ±5.4 g/hr.’’ current state of Washington catalytic emissions for each new heater sold. • ‘‘The reproducibility was no better standard of 2.5 g/hr. Given that limited snapshot for these than ±4.5 g/hr and ranged as high as The proposed Step 2 state-of-the-art cost and emission estimates, the average ±6.4 g/hr.’’ BSER cost and economic impacts would cost of reducing each new ton of PM2.5 We believe some mitigating factors are be significant, but our analysis shows a emissions during the 2014–2022 period not accounted for in their analysis, such very reasonable cost per ton of emission would be approximately $26,000 per ton as the lack of regulatory requirements or reduction when considering the typical annually. As explained in section IV.C, incentives for the test laboratories to design and appliance life spans.44 Our the cost-to-sales ratio, which is an achieve highly reproducible results in data show that at the proposed Step 2 indicator of the ability of the proficiency testing (i.e., the laboratories BSER emission level of 1.3 g/hr, about manufacturer to successfully absorb the are not required to meet a certain 20 percent of catalytic models and 5 regulatory impacts, is high at 4.3 proficiency level; they are not paid for percent of noncatalytic models currently percent. However, when considering the the proficiency tests, but rather they manufactured would already comply total costs and cumulative emission absorb the costs as part of their with the proposed Step 2 standard. reductions over the more representative overhead; and, in some cases, they Thus, manufacturers would need to full model design life span and intentionally staged the test to either modify noncomplying lines or appliance emitting life span of 20 years; demonstrate that variability was develop new ones to continue the overall cost effectiveness is possible within the current protocol). production for approximately 95 approximately $500 per ton (shown Also, these factors do not reflect the percent of the current market. Some above in Table 11).45 proposed changes to improve the unknown fraction of manufacturers may Given the reasonable cost repeatability and reproducibility of the be able to switch some of their effectiveness of imposing the two-step test method. Consequently, we believe production from noncomplying models BSER when considering total costs and the previous results merit consideration to complying models. Because we do cumulative emission reductions, and of concerns about implementing a lower not know this fraction, because the total given the 6-year lead time (from the date emission standard, but they do not of complying units is only 6 percent of these proposed standards) until mean that lower emission standards (combined catalytic and non-catalytic models must meet the proposed Step 2 cannot be measured accurately. For models) at this time, and because many emission limit, we determined that the example, the State of Washington manufacturers have no complying two-step phased-in emission limits Department of Ecology has successfully models at this time, we have assumed represent BSER for these residential used lower emission levels in their this fraction to be zero for our analysis. consumer product appliances at this regulations since 1995, and the Oregon Historically, those manufacturers that time. Thus, we are proposing a two-step Department of Environmental Quality chose to comply with the 1988 NSPS standard for adjustable burn rate wood has used lower levels for tax credits for did so for a full range of models. Thus, heaters, in which Proposed Step 1 is low-emitting pellet heaters/stoves. our analysis shows the potential required upon the effective date of the As noted earlier in this section, we emission and cost impacts for the final rule and Proposed Step 2 is ask for comments and emission test data approximately 95 percent of adjustable required 5 years after the effective date using cord wood to help us determine burn rate wood heater models projected of the final rule. Section V.B.5 discusses if the proposed emission levels should to undertake R&D needed to develop the a three-step alternative approach that be adjusted for any differences between heater-specific combinations of time, we also considered for adjustable burn crib wood and cord wood. temperature, and turbulence to achieve rate wood heaters, and on which we are b. Pellet Heaters/Stoves higher efficiencies and lower (proposed seeking comment. Step 2 compliant) emissions. That is, We note that there have been some Several certified pellet heaters/stoves although the manufacturers know the technical questions associated with are subject to current subpart AAA. factors that are important for good measuring the emission levels However, most models currently offered combustion and low emissions, they associated with the proposed Step 2, for sale are exempt due to air-to-fuel still need to develop and test the which we are addressing in this ratios greater than 35:1. We considered laboratory-specific combinations that proposed rule. That is, the currently candidate options similar to those can be incorporated into the design of available laboratory proficiency test discussed earlier for wood heaters/ specific model lines. Alternatively, results cast some doubt on the stoves, i.e., improved catalytic and some manufacturers might convert reproducibility of test results at lower improved noncatalytic systems and noncatalytic models to catalytic models levels of the standard for the current state-of-the-art systems. Our data set for or hybrids as ways to reduce emissions. EPA Test Method 28. An HPBA currently manufactured U.S. pellet We estimated the resulting analysis 46 found that the repeatability heaters/stoves, for which we have nationwide costs based on the cost and reproducibility of the current test reproducible emissions data, contains assumptions explained in section IV.C. method for wood heater emissions, as 24 models, of which 23 would meet the The average annual cost increase to demonstrated by the EPA-accredited 4.5 g/hr proposed Step 1 BSER emission manufacturers of adjustable burn rate limit. We also compared the listings of wood heaters during the 2014 through 45 See footnotes 24, 36 and 38. certified pellet heaters/stoves for both 2022 period analyzed in the RIA is 46 Final Report: EPA Wood Heater Emission Test the EPA and the state of Washington. Of Method Comparison Study. Prepared by Robert the 224 pellet heater/stove models from approximately $4.2 million. Estimated Ferguson, Ferguson, Andors & Company for the Hearth, Patio and Barbecue Association. December both lists, 221 models produced by 35 44 See footnotes 24, 36 and 38. 1, 2010. manufacturers would meet the state of

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Washington emission standard. Only However, we do not know how many market. We estimate that over 40,000 of three models produced by three models will be dropped. This industry these units are sold per year. We manufacturers would not meet the has a history of manufacturing a wide evaluated all of the available emission standard. Assuming that the rest of the range of choices of models for the data and discussed the state of R&D pellet heater/stove market has marketplace. with manufacturers of single burn rate comparable performance, we would The nationwide annualized total costs wood heaters. The data show that the expect to see only a small cost impact are significant based on our cost BSER for single burn rate wood heaters of requiring the proposed Step 1 BSER assumptions explained in section IV.C based on improved combustion could emission levels of 4.5 g/hr for and in our background achieve the same emission levels for one noncatalytic and catalytic pellet heaters documentation.47 The average annual individual burn rate category as in terms of having to redesign units to cost increase to manufacturers of pellet adjustable burn rate category wood meet the proposed Step 1 BSER. heaters/stoves during the 2014 through heaters do for the weighted average of Even though additional R&D would 2022 period analyzed in the RIA is four burn rates. To compare single burn not be required to meet the proposed approximately $3.5 million. Estimated rate emissions to adjustable burn rate Step 1 BSER, manufacturers would need nationwide annual PM2.5 emissions, emissions, however, one must to test and certify their heaters/stoves to averaged over this same period (2014– remember that single burn rate wood sell them after the effective data of the 2022), are projected to be 199 tons/year heaters are by definition incapable of final rule, which we expect to occur in under baseline conditions versus 150 operating at the lowest burn rates, and 2015. Some manufacturers of pellet tons/year under the proposed two-step that these low burn rates result in the heaters/stoves have started incurring BSER, an average reduction of 49 tons/ greatest level of emissions in an costs in anticipation of the final rule. year, considering only the first year of adjustable burn rate wood heater. Thus, They would also incur ongoing emissions for each new heater sold. the certification test method for single recertification costs for the fraction of Given this limited snapshot for these burn rate wood heaters must be heaters/stoves with expiring cost and emission estimates, the average modified to take the single burn rate certifications. cost of reducing each new ton of PM2.5 into account (instead of the multiple Some stakeholders have argued that emissions during the 2014–2022 period burn rates for the adjustable rate pellet heaters/stoves are relatively is approximately $71,000 per ton heaters). For example a rate of 3.0 g/hr cleaner burning than other wood heaters annually as compared to the monetized could be considered to be equivalent to and that regulation is not needed. Other health benefits of $360,000 per ton to the state of Washington standards (of 4.5 stakeholders have argued that pellet $810,000 per ton of reducing direct g/hr for adjustable burn rate wood heater/stove standards should be tighter PM2.5. The annualized cost-to-sales ratio heaters) adjusted to the single burn rate. to show how clean they are and is 2.3 percent. However, when Considering that single burn rate encourage consumers to purchase pellet considering the total costs and wood heaters will not be expected to heaters/stoves instead of cord wood cumulative emission reductions over operate at the typically higher-emitting heaters/stoves. Considering both the more representative full model burn rates, we expect the majority of positions, and because pellet heaters/ design life span and appliance emitting single burn rate wood heaters to meet stoves are cleaner burning in general, life span of pellet heaters/stoves, the the proposed Step 1 BSER limit of 4.5 we think there is environmental value overall cost effectiveness is g/hr for adjustable burn rate wood in ensuring they have an EPA approximately $1,500 per ton (shown heaters, if the design is focused on one certification so they can be sold in above in Table 11).48 optimal single burn rate. However, some jurisdictions that require such Given the reasonable cost models would require modifications to certification of any wood-burning effectiveness of imposing the proposed ensure that they consistently pass the appliance (contingent upon approval by two-step BSER when considering total test and to add tamper-proof settings to the local jurisdiction). This would help costs and cumulative emission ensure that operators do not circumvent avoid a competitive imbalance regarding reductions, and given the 6-year lead the intent of the NSPS. For our analyses, wood heaters. Also, we believe there is time (from the date of these proposed we assumed that all existing models environmental value in having third- standards) until model lines must come would need to be modified through party accredited laboratory test results into compliance with the proposed Step R&D, resulting in significant emission available in all areas so that consumers 2 limit, we determined that the two-step reductions to achieve the proposed Step can make informed choices among phased-in limits represent BSER for 1 BSER. We request specific data and competing residential heaters. these residential consumer appliances at comments regarding these assumptions. We are also proposing this time. Thus, we are proposing a two- Since 2009, single burn rate wood implementation of a Step 2 state-of-the- step standard for pellet heaters/stoves, heater designs have been undergoing art BSER 5 years after the effective date in which Proposed Step 1 is required R&D in anticipation of the proposed of the final rule. We estimate that at upon the effective date of the final rule, NSPS, and the information that we have least 30 percent of current U.S. pellet and Proposed Step 2 is required 5 years from industry is that cleaner designs are heater/stove models already meet the after the effective date of the final rule. nearly market-ready.49 Nonetheless, proposed Step 2 emission level. We Section V.B.5 discusses a three-step because these devices were previously assume that manufacturers will either alternative approach that we also unregulated and may need to transfer modify the remaining models or invest considered for pellet heater/stoves, and technology from adjustable burn rate in developing new model lines that can on which we are seeking comment. wood heaters, our cost analysis assumed meet the proposed Step 2 emission that R&D efforts would intensify in level. This assumption may somewhat c. Single Burn Rate Wood Heaters order to meet the proposed Step 1 overstate the potential cost and Single burn rate wood heaters standard while also beginning R&D to economic impacts of requiring a represent a huge regulatory exemption develop models to meet the more proposed Step 2 BSER, because some in the current residential wood heater stringent proposed Step 2 BSER limit. noncomplying models will be dropped Specifically, for single burn rate wood and manufacturers may consolidate 47 See footnotes 36 and 38. their model lines in the short term. 48 See footnotes 24, 36, and 38. 49 See footnote 36.

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heaters, we doubled our R&D estimate of current new residential hydronic 2 level of 0.32 lb/MM BTU.52 In almost $356,250 per model for other appliances heaters and forced-air furnaces. Our all cases, the manufacturers developed in these early years. intent is that this rule will be stated in models that rely upon improved The nationwide annualized total costs broad enough terms to regulate any combustion techniques, primarily are based on the cost assumptions future central heater wood-burning improvements in time, temperature, and explained in section IV.B and in the appliances that may come into the U.S. turbulence. That is, the improved 50 background documentation. The market and function as central heaters. combustion models have greater average annual cost increase to In this section, we describe our rationale residence time, separation of the firebox manufacturers of single burn rate for determining BSER and the and the water jacket and the addition of heaters during the 2014 through 2022 associated proposed emission standards better heat exchangers and better period analyzed in the RIA is for both hydronic heating systems insulation to increase temperatures, and approximately $902,000. Estimated (‘‘hydronic heaters’’) and forced-air passageways and directed flows to nationwide annual PM2.5 emissions, improve mixing and turbulence. In averaged over this same period (2014– furnaces. As discussed earlier in this preamble, the source categories to be some cases, manufacturers are also 2022), are projected to be 932 tons/year using catalyst technology. Each under the baseline (unregulated) regulated by proposed subparts AAA, QQQQ, and RRRR are fundamentally manufacturer has developed their own condition versus 178 tons/year under confidential business combinations of different from the typical NSPS source the proposed two-step BSER, an average specific designs that incorporate these category that includes industrial reduction of 754 tons/year, considering key aspects and some other techniques. only the first year of emissions for each processes whereas subparts AAA, In addition to the voluntary new heater sold. Given this limited QQQQ, and RRRR include mass- partnership program, the EPA provided snapshot for these cost and emission produced residential consumer technical and financial support for estimates, the average cost of reducing products. Thus, additional factors are NESCAUM to develop a model rule for each new ton of PM2.5 emissions during included in the analyses presented outdoor hydronic heaters, which several the 2014–2022 period is approximately today. Section V.B.2.a. below discusses states have adopted or plan to adopt to $1,200 per ton annually as compared to hydronic heaters. Section V.B.2.b. regulate those units in their the monetized health benefits of discusses forced-air furnaces. jurisdictions. The model rule Phase 2 $360,000 per ton to $810,000 per ton of a. Hydronic Heaters emission limits and the voluntary reducing direct PM2.5. The cost-to-sales partnership program Phase 2 emission ratio is 6.4 percent and is calculated As described in section II.D, hydronic levels/caps are identical, and are the based on only the initial 5-year period. heaters (commonly known as ‘‘outdoor same as our proposed Step 1 limit. In However, when considering the total wood boilers’’ although there are indoor several states, the Phase 2 emission costs and cumulative emission units as well) are the subject of an EPA levels have become regulatory reductions over the more representative voluntary partnership program, started requirements for new units. Based on full model design life span and in January 2007. The EPA’s voluntary our experience with the hydronic heater appliance emitting life span, the overall partnership program provided criteria in market through the voluntary cost effectiveness is approximately $50 2007 for qualification of units to be partnership program, we understand per ton (shown above in Table 11).51 approximately 70 percent cleaner than that it is dominated by a few Given the reasonable cost manufacturers in terms of the bulk of effectiveness of imposing the two-step unqualified models (Phase 1, ‘‘orange hangtag’’). In October 2008, the program sales, and each of these manufacturers BSER when considering total costs and has at least one qualifying model cumulative emission reductions, and evolved to Phase 2, and EPA-qualified Phase 2 (‘‘white hangtag’’) units are already. given the 6-year lead time (from the date For these reasons, we consider the of these proposed standards) until new approximately 90 percent cleaner than older, pre-program unqualified units. Phase 2 voluntary partnership program model lines must meet the proposed level the appropriate emission level for Step 2 emission limit, we determined Under the Phase 2 voluntary partnership program, new qualified the NSPS proposed Step 1 BSER, that the two-step phased-in limits effective upon the effective date of the represent BSER for these residential models must emit no more than 0.32 lb/ MMBtu of heat output and have a cap final rule. As noted above, there are consumer appliances at this time. Thus, currently 36 models (27 cord wood and we are proposing a two-step standard of 18 g/hr on any individual test run conducted during the qualifying test. 9 pellet models) built by 17 U.S. for single burn rate wood heaters, in manufacturers that have already been (As noted in the hydronic heaters test which Proposed Step 1 is required upon qualified to meet the Phase 2 voluntary method discussion in this preamble, the the effective date of the final rule and partnership program level of 0.32 lb/ EPA, the manufacturers, the Proposed Step 2 is required 5 years after MM BTU. the effective date of the final rule. laboratories, and key states conducted The EPA believes the proposed Step Section V.B.5 discusses a three-step an additional review of the test reports 2 limit for hydronic heaters is alternative approach that we also to support these qualifications and achievable for some manufacturers now considered for single burn rate wood made some changes to the test methods and would be achievable for all heaters, and on which we are seeking to improve the reliability and manufacturers 5 years after the effective comment. reproducibility of the test results.) date of the final rule. We consider this 2. Central Heaters The proposed Step 1 emission limit compliance period a reasonable amount for hydronic heaters is the Phase 2 of time for manufacturers to complete We are proposing subpart QQQQ for qualifying level of the hydronic heater development across model lines and wood-burning appliances that function complete testing, field evaluation, and as ‘‘central heaters’’ with the purpose of voluntary partnership program, 0.32 lb/ heating the entire residence, including MMBtu. There are currently 36 models (27 cord wood and 9 pellet models) 52 A list of cleaner hydronic heaters participating built by 17 U.S. manufacturers that have in the EPA’s voluntary partnership program is 50 See footnotes 24, 36 and 38. located at http://www.epa.gov/burnwise/ 51 See footnotes 24, 36 and 38. been qualified to meet the 2008 Phase owhhlist.html.

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certification so that sufficient models local jurisdictions, especially since art models use multiple-stage are ready for sale. We reviewed all the some states were concerned that some combustion and some use oxygen hydronic heater emission data available, high-emitting indoor units were sensors and CO sensors and automated and we found our proposed Step 2 avoiding rules that only specified feedback controls to help optimize emission limit of 0.06 lb/MMBtu is outdoor units. Indoor and outdoor combustion conditions. A concern in already met by 4 hydronic heater models compete in the marketplace and comparing the emission performance of models (2 cord wood and 2 pellet having standards on only outdoor units European models with North American models) built by 2 U.S. manufacturers would provide a market advantage to models is the difference in test methods. (using crib wood as specified in Method indoor models. Indoor and outdoor All European models are tested on cord 28 WHH in the voluntary partnership models both can use currently available wood fuel in Europe by European program),53 as well as over 50 European improved combustion and improved laboratories to meet European models per test method EN 303–05 heat transfer techniques to achieve standards. Few have been imported to (which uses cord wood).54 We ask for similar emission levels. Given the the U.S. (by U.S. companies) and very comments and emission test data using number of years the voluntary few have been tested in the U.S. cord wood and different test methods to partnership program has already been in according to U.S. testing requirements. help us determine if the proposed existence, we believe our proposed Step However, a recent report 55 included an emission levels should be adjusted for 1 limit upon the effective date of the effort to compare the performance of the any differences in test methods and test final rule and the proposed Step 2 limit European models to U.S. type fuels, e.g., between crib wood and cord 5 years after the effective date of the performance standards. Although a wood. final standard provide reasonable lead perfect comparison is not possible due Our review of the available data also time to incorporate BSER in both to differences in duty-cycle (i.e., showed a break point at the emission outdoor and indoor residential proportion of time the unit is operating) level of 0.15 lb/MMBtu heat output. We consumer models. We ask for specific to be evaluated in the test and the considered this break point as a comments and data on this emissions sampling and analysis candidate for interim Step 2 in the determination and the degree to which protocols, the analysis indicates that the three-step Alternative Approach, as other options would be appropriate. top 20 percent performing European discussed in section III above. Several We estimate that there are 30 wood boilers (i.e., hydronic heaters) in years ago, we discussed the 0.15 lb/ manufacturers producing approximately the size range of 120,000–170,000 Btu MMBtu level with the voluntary 120 hydronic heater models for sale in would meet an output-based emission program stakeholders, including states the U.S. On a sales-weighted basis, less rate of 0.06 lb/MMBtu using the and manufacturers, as a potential future than 25 percent of the models currently European test methods. The underlying ‘‘Phase 3’’ interim target in the sold would need to undertake R&D to test data and limited comparative voluntary partnership program to meet the proposed Step 1 BSER limit, testing show that over 50 European reduce emissions to approximately one- with a higher percentage that would models would likely be considered half of the Phase 2 voluntary need to undertake R&D to meet the state-of-the-art BSER and be capable of partnership program level. Some of the proposed Step 2 BSER limit. We meeting the proposed Step 2 BSER manufacturers responded quickly to this assumed that any manufacturer associated emission level of 0.06 lb/ informal target and now 11 of the 36 undertaking R&D to develop a new MMBtu heat output, using EN 303–05, models (6 cord wood and 5 pellet model would aim to meet the proposed which specifies cord wood as the test models) that currently qualify under the Step 2 limit to maximize the lifetime of fuel. We ask for comments and emission Phase 2 voluntary partnership program the resulting product, while shifting test data using different test methods already qualify at an emission level of production to models that already meet and cord wood to help us determine if 0.15 lb/MMBtu or better. the proposed Step 1 limit. For our cost the proposed emission levels should be The proposed BSER levels include analysis, we assumed that 100 percent adjusted for any differences in test both outdoor hydronic heaters and of the 120 hydronic heater models methods and between fuels, e.g., crib indoor hydronic heaters. The initial would incur NSPS-related R&D costs to wood and cord wood. manufacturers who actively participated achieve the proposed Step 2 BSER limit. The nationwide annualized total costs in the voluntary partnership program Considering typical R&D lead times, and are based on the cost assumptions were primarily manufacturers of even the different starting dates for explained in section IV.C and in the 56 outdoor units, due to the very large outdoor versus indoor manufactures, we background documentation. The concern about the health effects of concluded that 5 years after the effective average annual cost increase to emissions from the outdoor units and date of the final standard is an manufacturers of hydronic heaters the fact that over 90 percent of hydronic achievable compliance deadline for both during the 2014 through 2022 period heater sales were and still are for outdoor and indoor models, even if they anlayzed in the RIA is approximately outdoor models. When we moved to were just starting their R&D now. As $4.6 million. Estimated nationwide Phase 2 of the voluntary partnership discussed earlier in this preamble, most annual PM2.5 emissions, averaged over program in October 2008, we explicitly manufacturers have known of the this same period (2014–2022), are included indoor units to more strongly hydronic heater emission concerns for projected to be 1,332 tons/year under encourage cleaner indoor units and to over 7 years already. the baseline (unregulated) condition We also investigated the performance provide another tool for the states and versus 84 tons/year under the proposed of European models in considering two-step BSER, an average reduction of BSER options. Several European 53 See footnote 54. 1,249 tons/year, considering only the 54 European Wood-Heating Technology Survey: countries have already established first year of emissions for each new An Overview of Combustion Principles and the emission limits, and they are heater sold. Given this limited snapshot Energy and Emissions Performance Characteristics considering more stringent limits in the for these cost and emission estimates, of Commercially Available Systems in Austria, near future. This has encouraged the the average cost of reducing each new Germany, Denmark, Norway, and Sweden; Final Report; Prepared for the New York State Energy European industry to develop more Research and Development Authority; NYSERDA energy efficient and lower emitting 55 See footnotes 24, 36 and 38. Report 10–01; April 2010. technologies. Most of these state-of-the- 56 See footnotes 36 and 38.

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ton of PM2.5 emissions during the 2014– Canada. The main regulatory MMBtu). The conventional furnace 2022 period is approximately $3,600 per mechanisms are local and provincial achieved average particulate emissions ton annually. The annualized cost-to- regulations requiring listing per CSA of 1.65 g/MJ (3.828 lb/MMBtu) output. sales ratio is 3.3 percent for hydronic B415.1–10, which is the CSA Thus, the CSA limit of 0.40 g/MJ (0.93 heater models. However, when specification for emission performance lb/MMBtu) output corresponds to a 75 considering the total costs and of solid-fuel-burning heating percent reduction in emissions when cumulative emission reductions over appliances.58 All CSA standards are using the average particulate emissions the more representative full model developed through a consensus of the conventional furnace tested by design life span and appliance emitting standards development process Intertek as part of the CSA B415.1–10 life span, the overall cost effectiveness approved by the Standards Council of validation program. is approximately $160 per ton (shown Canada. This process brings together We also investigated the performance above in Table 11).57 stakeholder volunteers representing of European production forced-air Given the reasonable cost varied viewpoints and interests to furnace models to determine whether effectiveness of imposing the two-step achieve consensus and develop a their performance might be better than BSER, and given the 6-year lead time standard. The most recent B415.1–10 what CSA found in North America. (from the date of these proposed Committee consisted of manufacturers, However, forced-air furnaces are not standards) until model lines must come Environment Canada,59 provincial commonly used in Europe because they into compliance with the proposed Step agency staff, test laboratories and the are considered to be an inferior 2 limit, we determined that the two-step EPA. The current version of B415.1–10 technology for home heating in Europe; phased-in limits represent BSER for was published in March 2010, and it thus we had no European candidate these residential consumer appliances at includes new requirements for indoor BSER to consider. this time. Thus, we are proposing a two- and outdoor central heating appliances, Manufacturers are actively conducting step standard for hydronic heaters, in including wood-fired forced-air R&D in response to both the current which Proposed Step 1 is required upon furnaces. In addition to establishing CSA standard and the anticipated NSPS the effective date of the final rule, and performance test requirements, B415.1– we are proposing. For example, one Proposed Step 2 is required 5 years after 10 also includes emissions requirements company has recently had an EPA- publication of the final rule. Section for PM. Section 4.2.1(c) of the CSA certified laboratory test two of their V.B.5 discusses a three-step alternative standard establishes an average newest models. These tests, using the approach that we also considered for particulate emission rate of less than or test method in CSA B415.1–10, show hydronic heaters, and on which we are equal to 0.40 g/MJ, which is equivalent particle emissions below 0.1 lb/MMBtu seeking comment. to 0.93 lb/MMBtu. Manufacturers heat output. Considering all of the above, we believe that BSER for forced- anticipate that CSA Standard B415.1–10 b. Forced-air Furnaces air furnaces may be demonstrated at the will effectively establish the minimum Emissions from wood-fired, forced-air same emission levels as for hydronic requirements for future units sold in furnaces have not previously received heaters. We have considered proposing Canada. For example, the province of much attention in the U.S. However, standards for forced-air furnaces that British Columbia has enacted industry information suggests that there match the Step 1 and Step 2 standards regulations limiting the sale of wood- are three times more sales of wood-fired, we are proposing for hydronic heaters, burning appliances to those that comply forced-air furnaces each year compared that is, a proposed Step 1 BSER of 0.32 with B415.1–10 (or the U.S. NSPS when to wood-fired hydronic heaters. These lb/MMBtu heat output and a cap of 18 the EPA issues such a standard), and units are relatively easy to retrofit into g/hr as determined by the test methods existing structures, and their sales price other provinces and municipalities in and procedures in CSA B415.1–10 upon is substantially less than hydronic Canada are in the process of amending the effective date of the final standard heaters but greater than gas or oil their regulations to apply to central and a proposed Step 2 BSER of 0.06 lb/ furnaces. Because they are whole-house heating systems, including forced-air MMBtu heat output as determined by heating systems, they have the capacity furnaces. the test methods and procedures in CSA to generate large amounts of emissions. In developing the B415.1–10 B415.1–10, 5 years after the effective Also, they compete with wood-fired emissions limit of 0.40 g/MJ (0.93 lb/ date of the final standard. However, we hydronic heaters, which we propose to MMBtu) for solid-fuel central heating have concerns that only one U.S. regulate. Not regulating wood-fired, systems, the CSA committee thoroughly manufacturer currently has models that forced-air furnaces could create an reviewed the best systems available, have been tested by CSA B415.1–10 and adverse competitive imbalance with the developed a test method for such shown to achieve these levels, and, wood-fired hydronic heater market systems and supported emission testing thus, we are proposing that the Step 1 segment of the residential wood heater of candidate best systems. A B415.1–10 BSER for forced-air furnaces match the source category. Both forced-air validation-testing program performed by current CSA B415.1–10 level of 0.93 lb/ furnaces and hydronic heaters compete Intertek in Middleton, Wisconsin, MMBtu heat output. We are also with oil and gas furnaces. Consumer included both a high-tech furnace and a proposing, however, that by 5 years after choices vary with consideration of conventional furnace. The high-tech the effective date of the final standard, upfront sales price, financing costs, and furnace achieved average particulate forced-air furnaces be subject to the operating costs, e.g., the cost of emissions of 0.46 g/MJ output (1.067 lb/ same standards as hydronic heaters and obtaining seasoned wood versus oil or be required to meet the proposed Step 58 CSA B415.1–10: Performance testing of solid- 2 BSER of 0.06 lb/MMBtu that hydronic gas. fuel-burning heating appliances, Canadian Wood-fired, forced-air furnaces are Standards Association, Mississauga, Ontario, heaters must meet then under this not currently regulated in the U.S. (with Canada. March 2010. proposal. the exceptions of broader bans or use 59 Environment Canada was created in 1971, and Given that the largest U.S. forced-air limits on wood-burning appliances), but has the responsibility to implement the Government furnace manufacturer already has a of Canada’s environmental agenda including, but they are beginning to be regulated in not limited to, Canada’s environmental and wildlife catalytic model meeting 0.06 lb/MMBtu, legislation, enforcement activities and other efforts we think the 6 years of lead time is 57 See footnotes 36 and 38. to protect, conserve and enhance the environment. sufficient time in which to conduct R&D

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to produce comparably lower emitting alternative approach that we also (measuring emissions per heat output) model lines, although we are seeking considered for forced air furnaces, and that ranged from 0.07 g/MJ to 0.51 g/MJ comment on an alternative 3-step on which we are seeking comment. (∼0.17 to 1.22 lb/MMBtu), with an approach with a longer lead time. Since average rate of 0.26 g/MJ (0.621 lb/ 3. Masonry Heaters there are limited emissions data MMBtu). As we discussed earlier in this available for forced-air furnaces that We are proposing subpart RRRR for preamble, we do not have good reflect hydronic heater proposed Step 1 new masonry heaters. With a few information on how many heaters emit and proposed Step 2 BSER, we request exceptions, masonry heater emissions at each of these levels and thus have not specific comments and data on the are not subject to specific PM emission developed a good estimate of baseline proposed emission levels and limits in North America or Europe. emissions and we ask for data that compliance deadlines, as well as the Some states and local areas do not allow would help inform us. However, looking environmental impacts and market any residential wood heaters that are at this data set in more detail, we can implications for setting emission limits not certified to meet the current see that the best ‘‘improved that match what we are proposing for residential wood heater NSPS. The combustion’’ systems have an emission hydronic heaters. states of Colorado and Washington have level of 0.13 g/MJ (0.32 lb/MMBtu) heat The nationwide annualized total costs set 6 grams of particles emitted per output. We note that this level is are based on the cost assumptions kilogram of wood burned (g/kg) and 7.3 consistent with the proposed Step 1 explained in section IV.C and in the g/kg limits, respectively (each of which BSER for hydronic heaters. background documentation.60 The is based on different test methods), and As discussed earlier in this preamble, average annual cost increase to a small number of appliances have been the source categories to be regulated by manufacturers of forced air furnaces tested and certified for those states. (The the proposed subparts AAA, QQQQ, during the 2014 through 2022 period BSER level we are proposing below uses and RRRR are fundamentally different analyzed in the RIA is approximately a different format but is commonly from the typical NSPS source category $2.3 million. Estimated nationwide accepted to be only slightly more in that most NSPS regulate industrial annual PM2.5 emissions, averaged over stringent than the Colorado and processes whereas the source categories this same period (2014–2022), are Washington limits.) We considered in subparts AAA, QQQQ, and RRRR projected to be 3,044 tons/year under various forms for a masonry heater include mass-produced residential the baseline (unregulated) condition standard, and we believe that an consumer products. Thus, additional versus 434 tons/year under the appropriate format could be a daily factors are included in the analyses proposed two-step BSER, an average average g/hr limit for the heating cycle presented today as compared to typical reduction of 2,610 tons/year, coupled with a limit for emissions per NSPS. For example, we considered considering only the first year of heat output (lb/MMBtu output). The whether we should allow longer lead emissions for each new heater sold. daily average over the heating cycle time over which small manufacturers/ Given this limited snapshot for these format seems to be well adapted to the builders could spread their R&D costs in cost and emission estimates, the average nature of the technology of masonry order to stay in business. The Small cost of reducing each ton of PM2.5 heater operation, which involves one or Business Regulatory Enforcement Act emissions during the 2014–2022 period two short high burn rate cycles where Panel strongly recommended that we is approximately $860 per ton annually, hot gases are generated during consider allowing more time. See as compared to the monetized health combustion of a fuel load in the firebox section V.C of this preamble for benefits of $360,000 per ton to $810,000 and then pass through the channels, discussion of this topic. per ton of reducing direct PM2.5. The saturating the masonry mass with heat. We estimated proposed Step 1 cost-to-sales ratio is 2.4 percent. The masonry mass then radiates heat improved combustion BSER emissions However, when considering the total into the area around the masonry heater and cost and economic impacts based costs and cumulative emission for 12 to 24 hours. Unfortunately, we on four groups of costs. The first group reductions over the more representative lack sufficient data to set the level of a of costs consisted of the two large full model design life span and daily average data approach, so we are manufacturers that we know have appliance emitting life span, the overall proposing instead a heat output format. already developed potentially cost effectiveness is approximately $40 The heat output format has the complying models and would only face per ton (shown above in Table 11).61 advantage of providing a good metric for the costs of certification tests. For the Given the reasonable cost consumers and regulatory agencies to second group of costs, we estimated the effectiveness of imposing the two-step compare emissions of competing costs incurred by an additional two BSER, and given the 6-year lead time residential heating appliances for an large manufacturers that conduct R&D to (from the date of these proposed equivalent heat output. We ask for develop a total of four new model lines. standards) until new model lines must specific comments on whether a g/kg For the third group of costs, we come into compliance with the format would be better. estimated the cost of one of the proposed Step 2 limit, we determined We had numerous discussions with manufacturers using the computer that the two-step phased-in limits states, masonry heater manufacturers, simulation approach to certify represent BSER for these residential and laboratories on heater designs, test additional model lines. Finally, for the consumer appliances at this time. Thus, methods and heater emissions and fourth group of costs, we estimated the we are proposing a two-step standard performance. The best performing cost for all of the small, custom-built for forced air furnaces, in which improved combustion technology manufacturers using the computer Proposed Step 1 is required upon the masonry heaters have well-engineered simulation approach to certify their effective date of the final rule and designs with long channels to maximize model lines. We do not anticipate a Proposed Step 2 is required 5 years after complete combustion and heat transfer. large nationwide emission reduction the effective date of the final rule. The manufacturers provided all resulting from requiring the proposed Section V.B.5 discusses the three-step available current emissions data. For Step 1 BSER versus what most example, one manufacturer provided an manufacturers would have done in the 60 See footnotes 37 and 38. archive of available data. The data set absence of a rule; however we believe 61 See footnotes 24, 36 and 38. included results from 31 tests there are some masonry heaters that do

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not use current best designs and for We are requesting specific comments on not intend for the final rule to allow a those heaters there can be an emission the proposed BSER option and data that choice between the two approaches. We reduction of 70 percent or more. We might support alternative findings and did not develop a three-step approach believe it is important to ensure that all enhance our impact analyses. For for masonry heaters under subpart new models achieve the BSER emission example, if we were to develop a g/hr RRRR, since it is a one-emission-level levels and avoid backsliding. average format in addition to the lb/ standard, but we are seeking comments The nationwide annualized total costs MMBtu heat output format, are there on our proposed 5-year compliance are based on the cost assumptions products that might meet a daily average extension for small volume masonry explained in section IV.C and in the over the heating period versus the heater manufacturers. background documentation.62 The averaging only over the combustion average annual cost increase to period, and if so, how would this affect We compared unit cost increases,63 manufacturers of masonry heaters levels of performance and impacts on nationwide manufacturer cost during the 2014 through 2022 period the environment? Further, we are estimates,64 emission reductions,65 and analyzed in the RIA is approximately seeking comment on the degree to overall cost effectiveness of the two-step $294,000. The estimated cost-to-sales which these dates could be sooner. proposal to the three-step alternative ratio is 4.8 percent. If one were to approach considered.66 Table 12 4. Alternative Approach for Comment spread the costs over the much longer compares the unit cost increase, typical lifetimes of masonry heaters As noted in section III, in addition to nationwide average cost to (over 40 years), the average annual costs the proposed two-step standards manufacturers and the annual would be much lower. We concluded described above for appliances particulate emission reductions, during that the proposed Step 1 BSER level of regulated as ‘‘room heaters’’ under the 2014 through 2022 period analyzed subpart AAA (currently catalytic and 0.32 lb/MMBtu heat output is in the RIA, for appliances currently noncatalytic adjustable burn rate wood appropriate for these appliances. affected by this proposal, considering For masonry heaters, we are heaters, single burn rate wood heaters, only the first year of emissions for each proposing that large manufacturers of and pellet heaters/stoves) and for masonry heaters (defined as those appliances regulated as ‘‘central new heater sold. Based on the cost and manufacturers constructing 15 or more heaters’’ under subpart QQQQ emission reduction estimates presented masonry heaters per year) would be (currently hydronic heaters and forced- in this table, the overall cost required to comply with these standards air furnaces), we also considered a effectiveness for this proposal over the upon the effective date of the final rule. different approach, an ‘‘alternative 2014–2022 period is $3,250 per ton, but We are proposing that small three-step approach’’ for subparts AAA $5,800 per ton for the alternative manufacturers (defined as those and QQQQ. We seek comments on approach considered (assuming no manufacturers of less than 15 masonry whether the final rule should be our emission reductions for masonry heaters per year) would be required to (preferred) proposed two-step approach heaters, for the sake of this analysis). comply with these standards 5 years or whether the final rule should be this Additional information on the impacts after the effective date of the final rule. alternative three-step approach. We do is included in the RIA in the docket.

TABLE 12—COMPARISON OF PROPOSAL AND ALTERNATIVE APPROACH (2014–2022)

Unit cost increase from Nationwide average cost in- Emission reduction from baseline crease from baseline baseline Appliance type (2010$) (2010$) (tons) Proposal Alternative Proposal Alternative Proposal Alternative

Certified Wood Heaters ...... 24 ...... 48 ...... 4,212,303 8,090,026 163 ...... 136 Single Burn Rate Heaters ...... 226 ...... 337 ...... 901,732 1,540,600 754 ...... 756 Pellet Heaters/Stoves ...... 24 ...... 47 ...... 3,460,489 6,255,536 49 ...... 24 Forced-Air Furnaces ...... 3,262 ...... 4,891 ...... 2,252,284 3,813,898 2,610 ...... 2,712 Hydronic Heating Systems ...... 6,458 ...... 9,672 ...... 4,554,152 8,302,026 1,249 ...... 1,250 Masonry Heaters ...... 300 (ave.) .... 300 (ave.) .... 307,511 293,776 Not esti- Not esti- mated mated.

Total ...... 10,294 ...... 15,295 ...... 15,688,471 28,295,862 4,825...... 4,878

We are seeking comment and assumption that the proposed Step 2 interim emission limits imposed during information on potential justifications BSER, already demonstrated by various the transition from the proposed Step 1 for implementing such a three-step models in each appliance category to the proposed Step 2. In the standard, instead of our proposed two- affected by the proposed rule, is alternative approach considered, there step standard for each of the appliances achievable within 5 years of the is a longer transition period of 8 years affected by this proposed rule, to proposed Step 1 BSER. There is a between Step 1 and Step 3 (with the provide additional flexibility for significant emission reduction achieved same significant emission reduction manufacturers that have different by the proposed Step 2 BSER compared achieved between our proposed Step 1 capabilities and resources to ultimately to the proposed Step 1 BSER in each and proposed Step 2), but there is an reach the most stringent BSER. The appliance category discussed above in interim Step 2 limit which proposed two-step standards rely on the section V, but there are no proposed manufacturers must meet 3 years after

62 See footnotes 24, 36 and 38. 64 See footnote 24, 36 and 38. 66 See footnote 24, 36 and 38. 63 See footnote 38. 65 See footnote 24.

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the proposed Step 1. If we were to give this time. We are proposing only to proposing that manufacturers measure a longer timeframe to redesign across require testing and reporting but not a and report CO. We believe this model lines to accommodate the best minimum efficiency standard. Current information will be useful to consumers systems, test, field evaluate, and certify data and other information from and state and local regulators. Requiring a wide range of model lines, we believe manufacturers and testing laboratories manufacturers to measure and report CO there would be benefit to establishing and the NYSERDA ‘‘European Wood- emissions would also result in the required interim limits to codify Heating Technology Survey’’ discussed collection of data that could be used in progress in reducing emissions and to earlier in this preamble show that, in the future to establish a CO emissions focus positive attention on early general, the same types of improved limit. We are requesting specific achievers as they show compliance in combustion BSER designs that tend to comments and supporting data on the the period between 2015 and 2023. reduce PM2.5 emissions also tend to need for and level of a possible CO We expect that the manufacturers that increase combustion efficiency, reduce emissions standard. Also, we ask for do not already meet the strongest CO emissions and improve efficiency. comments on whether we should emission limits would like the longer Current subpart AAA allows sources to require CO monitors to help ensure time to meet the Alternative Approach either measure efficiency or report a proper operation of the heater and to Step 3 but would prefer to not have an default efficiency value. We believe reduce health and safety concerns for interim Step 2 requirement. However, these proposed subparts are an excellent appliances that are installed in occupied we do not currently see adequate opportunity to standardize the areas. collection and reporting of such data. justification for allowing extra time c. Pellet Fuel Requirements without also requiring satisfactory Most industry members support the progress, especially because numerous collection and reporting of tested A wide variety of pellet fuels is models already achieve the strongest efficiency values, but some do not available for purchase. However, in emission levels. We also have concerns necessarily support an efficiency some cases, quality claims on the pellet about the complexity of a 3-step standard because they have concerns fuel bag do not necessarily reflect what approach and whether it would be that efficiency standards would is in the bag and there can be variable harder for the EPA to enforce. Thus, we encourage a ‘‘ratings race’’ and worry performance. Manufacturers’ data show seek comment, including data and that some manufacturers would sacrifice that some fuel qualities have worse potential environmental and economic operational viability in the field for a burning characteristics and operational justifications, on whether the described higher efficiency rating. We agree that characteristics than others, which Alternative Approach Step 2 emission some heat loss is necessary to ensure results not only in heater performance limits represent BSER within 3 years of adequate draft out the chimney/stack problems but also increased emissions the effective date of the final rule. We and not backdrafting into living areas. of PM. The PFI, an industry trade also seek comment on whether an However, we do not expect organization, has had pellet fuel quality additional 5 years would be necessary to manufacturers to jeopardize their standards in place since 1995, with updated standards issued in 2005, and transition from the Alternative reputation or operator safety for a higher again, most recently in 2011 (http:// Approach Step 2 to the Alternative rating, and we believe that competition pelletheat.org/wp-content/uploads/ Approach Step 3 limit, or whether such among manufacturers to increase their 2011/11/PFI-Standard-Specification- a transition could be made in a shorter heaters/stoves’ efficiencies is good for November-2011.pdf), in response to the time period. Finally, for single burn rate consumers and the environment. We EPA’s planned revisions to the wood heaters and forced-air furnaces, request specific comments and residential wood heaters NSPS. We have we are seeking comment on whether the supporting data that would help inform reviewed the PFI program and believe it alternative Step 1 limit should become the need for and level of a possible is a good program that obviates the need effective upon the effective date of the efficiency standard. Also, we ask for for the EPA to develop our own program final rule or after a 1-year ‘‘adjustment’’ specific comments on how, in the meantime, to best ensure consumers at this time. Under the proposed NSPS, period. The EPA seeks to encourage have access to the best information on pellet burning appliances would be national achievement of the (proposed efficiency performance, e.g., labels, tested using PFI (or, upon request to the Step 2) BSER for each appliance owner’s manual, Burn Wise Web site EPA Administrator, an equivalent category as soon as possible and as and/or other means. organization’s) graded pellet fuel(s). efficiently as possible, which is why we Once certified, pellet burning prefer the proposal over the alternative b. CO Testing and Reporting appliances would only be allowed to approach we considered. However, we We considered developing CO burn the grade of fuel that the appliance also seek to balance industry’s R&D emission limits for all new residential manufacturer chose for the appliance needs with timely and efficient wood heaters. However, our current certification test and the manufacturer standards, and so we are seeking data for CO emissions performance and specifies in their owner’s manual for the comment on the alternative approach methods of control are not sufficiently operator to use. As discussed above, use outlined immediately above and in robust to support strong CO emission of inferior grades would cause heater section III. limits, and it would delay the NSPS if operational problems and increase 5. Other Proposed Emissions Testing we were to seek additional data emissions. The overall intent of the and Reporting elsewhere at this time to support strong certification process is to increase the CO emission limits. We expect the CO consistency and quality of pelletized a. Efficiency Testing and Reporting emissions to be reduced as a result of fuel throughout the industry, and, thus, While the CAA gives the EPA the control of PM, because meeting the reducing appliance operational authority to set standards for emissions, PM standards will be achieved problems and helping certified and we have issued final rules that have primarily by BSER based on good appliances perform at the emission used a variety of formats for such combustion (and in some cases catalysts levels to which they are certified. Heater standards, including efficiency, we lack and hybrids) which will also result in manufacturers have indicated to us that sufficient data to propose efficiency good CO reductions without additional market competition will compel them to standards for residential wood heaters at standards for CO. However, we are specify the widest range of grades for

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which their heaters will properly • Provide testing for samples collected materials, and to ensure that appliance perform. by auditing agencies continues to operate as designed. Even The PFI is also implementing a • Participate in the accreditation body’s with burning clean wood, one of the key quality assurance program to ensure that proficiency testing program factors affecting emissions is the manufacturers reliably produce graded Finally, the densified fuel producers moisture content. Some advocates have fuels. We propose to require adherence perform the following activities: suggested that we only allow use of to this program (or equivalent) as a • Develop an in-house QA/QC program wood certified to a certain moisture condition of producing graded pellet based on the PFI QA/QC handbook level and that we include visible fuels to be used in obtaining and the PFI standard specification emission limits as a tool to help with certification under the NSPS. Similar to • Select an auditing agency and test lab practical enforceability of the the NSPS quality assurance program, • Demonstrate compliance with grading requirements for proper operation and the PFI quality assurance program relies system component maintenance. Manufacturers typically • on use of accreditation and auditing Maintain compliance through include in their owner’s manuals bodies that: periodic audits, inspection and testing information on proper maintenance and • Accredit auditing agencies and testing As noted earlier, we have reviewed operation and state that the wood must laboratories the PFI program and believe it is a good be properly seasoned so that the • Implement and enforce the program, program that obviates the need for the moisture content is not too high for including testing that the pellet fuels EPA to develop our own program at this proper operation. Some manufacturers meet the grading specifications time. We ask for specific comments on include moisture meters for the this decision and the PFI program. • Maintain the enforcement regulations operators. We are proposing to require • Administer a laboratory proficiency d. Prohibited Fuel Types commercial owners (direct distribution manufacturers and retailers) to provide program As regulated in the current 1988 a moisture meter with the wood heater • Pursue product complaints subpart AAA standards for residential at the time of sale, along with the In addition, accredited auditing wood heaters/stoves, operation owner’s manual and a copy of the agencies perform the following tasks: according to the owner’s manual warranty. We request specific comments • Certify the production of densified requires operation with the appropriate fuels because the choice of fuels to burn on whether we should include more fuel manufacturers specific requirements on proper • Authorize production facilities to use in any appliance can have a major impact on emissions and efficient operations, such as the moisture content PFI’s ‘‘grading mark’’ of the wood and visible emission • Conduct regular audits and extracts operation of the appliance. For clarity, we are proposing a list of prohibited limitations. samples for third party verification fuel types (e.g., trash, plastics, yard • Revoke authority to use the PFI mark, C. How did we establish the proposed waste) to emphasize the responsibility if necessary compliance timelines? of owners and operators to use Accredited testing laboratories appropriate fuels that will result in the The following table summarizes the perform the following activities: performance of the unit as certified, to proposed compliance timelines for the • Provide QA/QC testing for fuel avoid the creation of possibly hazardous appliances covered by the three producers—‘‘as needed’’ fumes from burning inappropriate subparts.

TABLE 13—SUMMARY OF PROPOSED COMPLIANCE DATES

Appliance type Compliance date

Adjustable Rate Wood Heaters or Pellet Heaters/Stoves with Current 1988 requirements remain in effect for these heaters/stoves through EPA Certification Issued Prior to the Effective Date of the Final Rule. the later of the effective date of the final revised rule or expiration of current certification (maximum of 5 years after certification and no re- newal). All Other Adjustable Rate Wood Heaters or Pellet Heaters/Stoves (in- Step 1: upon the effective date of the final rule. cludes currently certified heaters after the certification expires). Step 2: 5 years after the effective date of the final rule. Single Burn Rate Heaters ...... Step 1: Upon the effective date of the final rule. Step 2: 5 years after the effective date of the final rule. Hydronic Heaters ...... Step 1: Upon the effective date of the final rule. Step 2: 5 years after the effective date of the final rule. Forced-Air Furnaces ...... Step 1: Upon the effective date of the final rule. Step 2: 5 years after the effective date of the final rule. Masonry Heaters ...... Large manufacturers: Upon the effective date of the final rule for large manufacturers. Small manufacturers: 5 years after the effective date of the final rule.

The proposed compliance dates are approximately 1 year between the date history of federal or extensive state tied to the effective date of the final of this proposal and the date of the final regulation, or experience with voluntary standards. As stated earlier, an element rule to meet proposed compliance partnership programs, 5 years after the of the BSER determination includes standards and limits. This 1-year period effective date of the final rule to come reasonable lead time for R&D to develop is in addition to the time that into compliance with the same emission and certify cleaner units. We think manufacturers have had leading up to standards as larger masonry heater limited or no R&D is needed to comply this proposed rule. manufacturers in order to ensure a with the proposed Step 1 BSER We allowed small producers of reasonable lead-time. standards. This allows manufacturers masonry heaters that do not have a

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Finally, we think our proposal for a 6- As stated above, we are proposing a become comfortable with this year lead time before the Step 2 BSER 5-year compliance date extension for alternative, and use it to demonstrate limits (i.e., 5 years after the effective masonry heater manufacturers that sell compliance. date of the final rule) would allow fewer than 15 units per year. We also We considered proposing a manufacturers a reasonable time to seek comments on whether we should compliance exemption for small develop complying models, access the have a cap on the total units sold in the manufacturers of masonry heaters necessary capital to develop them, and 5 years, perhaps 50 units. Most of these because of the overall small size of the complete the certification process. manufacturers are very small market. However, we were concerned We are proposing a 6-month ‘‘sold at companies. There are only a few major that this might encourage installation of retail’’ provision for adjustable burn rate producers. According to one cheaper, low-performing models, which wood heaters, single burn rate heaters/ manufacturer, the Finnish firm, would place complying models at a stoves, and pellet heaters/stoves that Tulikivi, manufactures and supplies potential disadvantage. We request were manufactured prior to the effective about one-half of the U.S. masonry comment on the need for either a date of the final rule, but not yet sold. heater units installed yearly through its compliance date extension or a This ‘‘sold at retail’’ provision is similar network of installing distributors. The compliance date exemption for masonry to that provided in the current subpart second largest producer is a Canadian heaters and the length of time that we AAA, and provides a reasonable firm, Temp-Cast, which manufactures should allow. transition for manufacturers to recoup and exports a large percentage of the We are not proposing any extensions their investment in their stock on hand. remainder as internal core components or exemptions for small manufacturers We believe this provision would have a only to U.S. dealer/installers and of adjustable burn rate wood heaters or nominal impact on air quality, because homeowners. This manufacturer states pellet heaters/stoves. Adjustable burn the majority of these appliances are that the remainder of the industry is rate wood heaters are already subject to already expected to achieve the Step 1 dozens of small producers and installers the NSPS, and we have estimated that emission limits. For small producers of who produce only a few units, most of they should not face any R&D expenses masonry heaters, we are proposing an which are custom and individually to comply with the Step 1 standards. To additional 5-year lead-time. We are not designed. This manufacturer also stated reduce unnecessary certification costs, proposing to apply these extensions to that over 80 percent of U.S. masonry we are proposing to allow a one-time other sources regulated by this proposal. heater installations use manufactured waiver from performance testing for the We do not believe that an additional core product installation and are not first certification period for any ‘‘sold at retail’’ provision is needed for custom site built (brick-by-brick). manufacturer that has previously outdoor and indoor hydronic heaters conducted a valid certification test that and forced-air furnaces. In the case of Because of the resources required to demonstrates the wood heaters in the hydronic heaters, we believe that any develop, test, and certify masonry model line meet the proposed delay of the compliance deadline for heaters (estimated by industry to be standards. We also believe that pellet sales would also result in the sale and approximately $250,000 per model, heaters/stoves would not face any R&D long-term use of non-complying units, although our cost analysis used a larger with a potentially adverse quality estimate), we have concluded that a costs to comply with the proposed Step impact. We request specific comments manufacturer of a small number of 1 standards, and we estimate that on whether there are other factors we custom site-built model(s) of masonry certification costs will only pose a should consider regarding this ‘‘sold at heaters would likely be unable to minor impact. We request comment on retail’’ window and what length of time recover the total cost of R&D and whether there are other factors we might be considered appropriate in certification testing costs in a reasonable should consider regarding a small specific circumstances. timeframe. Similarly, a company that manufacturer compliance extension for While the original subpart AAA makes core components or sells design these appliances. created a 1-year compliance extension kits would be unable to recover total We also are not proposing a small for wood heater manufacturers costs if only a few such components or manufacturer compliance extension for producing less than 2,000 heaters per kits are sold per year. We estimated that the Step 1 standards for new residential year, this proposed rule does not the annualized cost for developing, hydronic heaters or forced-air furnaces. include a compliance extension testing and certifying a single model is There are currently 36 hydronic heater provision for single burn rate heaters. approximately $60,000, most of which models built by 17 U.S. manufacturers The purpose of the original NSPS is the cost of R&D. If a seller makes that have already been qualified to meet compliance date extension was to $5,000 of profit on each model sold, he the Phase 2 voluntary partnership reduce the potential for a testing logjam or she would need to sell 12 units per program level of 0.32 lb/MM BTU. and to provide small manufacturers year to break even. The masonry heater Manufacturers of hydronic heaters and additional time to conduct R&D, obtain industry recognized concerns about forced-air furnaces have known for financing, or purchase complying these costs, and it has developed an several years that we were drafting this designs likely to meet the proposed alternative compliance method based on proposal and that the states have been standards. We believe that computer simulations. The industry very concerned about emissions from manufacturers and testing facilities have expects that this alternative will allow the models that may not meet the now had sufficient time and have sharing licensing of cleaner designs proposed standards; and we do not want gained the expertise necessary to meet such that the initial software purchase to perpetuate sales and use of models these standards as proposed and that would cost approximately $1,500 but unless they demonstrate they do meet meeting the proposed compliance dates ongoing annual licensing cost will be the standards. Once again, we request will impose no undue imposition on approximately $450 per manufacturer. comment on whether there are other manufacturers or testing facilities. We We believe the 5-year compliance date factors we should consider regarding a request comment on the need for such extension discussed above for masonry small manufacturer compliance a compliance extension and the number heater manufacturers that sell fewer extension for these appliances and what of models that might qualify as a small than 15 units per year will allow number of appliances sold would single burn rate heater manufacturer. sufficient time for manufacturers to constitute a small volume manufacturer.

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As discussed above, we recognize certification audits take place quarterly certifying body. We believe this there is some concern, as there was with and include the random inspection of combination of requirements would the initial NSPS compliance dates, that manufactured units for compliance with provide meaningful EPA oversight, testing laboratories capacity may not be design and safety factors. The assign clear lines of responsibility, and able to meet the demand for certification experience of the voluntary partnership free up resources to do more on-site tests in the first few years. However, we programs’ ISO process has shown that inspections and other quality assurance believe that the steps we have already the third-party approach can work. activities, such as addressing issues of proposed, the availability of additional We also reviewed the list of design counterfeit certificates or absence of ISO-accredited labs, the advance notice changes (the ‘‘k’’ list; See 40 CFR, certificates. that industry has had concerning the subpart AAA, § 60.633(k)) that would The current random compliance audit NSPS prior to this proposal, and the result in a need to recertify a model line testing of the certification testing time between this proposal and the when certain tolerances are exceeded. program is considered underused by proposed compliance date of the final We reviewed this list based on the many. The EPA recognized this and has rule, should ensure that adequate experience we have to date on the types recently initiated such testing. compliance certification resources are of changes that are significant and A key element of the current 1988 available. The logjam provisions of the knowledge about current manufacturing NSPS laboratory audit program is the current 1988 NSPS were never invoked, processes that help prevent these ‘‘round robin’’ test program. In this and we do not think they are needed at changes from occurring. The resulting program, the EPA purchases a wood this time. However, we are taking list focuses on the following key heater and sends it to each of the comment on this issue. We also request tolerances: accredited laboratories to conduct emissions tests (two runs at each burn comment on whether these compliance • Firebox dimensions rate for a total of eight runs). The EPA timelines strike the right balance • Air introduction systems then compares the results to determine between avoiding undue economic • Dimensions and locations of the inter-laboratory performance. The EPA burdens and the need to get better baffle, catalyst, refractory/insulation, recognizes that we have not given this performing models on the market as flue gas exit, and the outer shielding program as much attention as was soon as possible to reduce emissions, and covering envisioned in 1988. Thus, we propose to and whether other compliance dates • Dimensions and fit of the gaskets for strengthen this program by specifying would be appropriate. the door and catalyst bypass that every laboratory conducting • Fuel feed system D. How are we proposing to streamline certification tests under the NSPS must • Forced air combustion system the requirements for certification, participate in the round robin tests quality assurance and laboratory We believe these changes will focus every other year. If a lab’s results are not accreditation? resources on the significant changes that within ±10 percent of the value at which As part of the NSPS review process, could affect emissions performance of the heater was certified, then the lab several stakeholders stated the need to the model in question. We ask for must conduct another 8 runs. Also, we improve the current certification and specific comments on this list and the will remind the manufacturers that, as quality assurance requirements. For level of appropriate tolerances. always, the EPA may potentially use example, some pellet heaters/stove We propose to revise the requirement this information to help determine the manufacturers said one reason they for manufacturers to conduct quality need for manufacturer audits and avoid certifying their heaters/stoves is assurance emission tests once a potential enforcement actions. We think because they are concerned that the specified number of units are sold. that these requirements and reminders, current process is a barrier to rapid Instead, we propose to replace this combined with the proposed changes in product development and making numerical trigger with a requirement to test methods (described in greater detail changes to respond to market demand. retest when manufacturer-specific in the test methods discussion in this Many manufacturers were also quality assurance criteria (e.g., multiple preamble) and implementation of the concerned that, as the scope of the errors in safety tests) are exceeded. We ISO process will help improve inter- NSPS program expands to include believe that development of a laboratory repeatability and multiple appliance types, the manufacturer-specific quality assurance reproducibility. certification program would act as a plan with specific criteria and approval E. What changes and additions to the logjam. Some states are concerned, by an ISO-accredited certifying body (or allowed test methods are we proposing? however, that moving away from the EPA-approved equivalent) and required EPA certification might result in less follow-up by that certifying body is a As described earlier in this preamble, effective oversight. At the EPA, we are more direct measure of possible we are proposing changes to the test also looking for ways to use our performance issues, but we request methods required by subpart AAA. We enforcement resources more effectively. comment on the exact event(s) that are also proposing test methods for the We believe that the proposed changes, should be used as the trigger(s) to retest new subparts QQQQ and RRRR (as described in section III.A regarding a and whether the triggering event(s) described earlier). In addition, we are third-party certification program by an should vary by appliance type. proposing new requirements for testing ISO-accredited certifying body and We are proposing to retain final EPA and ultimately certifying using cord testing at ISO-accredited labs, will approval of the certification, and we wood, which is what the consumer facilitate the development of improved also propose to require the manufacturer burns. All affected devices required to designs by providing a faster approval to submit with the application for be tested using Method 28 or Method 28 process and reducing redundancies in certification a statement signed by a WHH would now be required to quality assurance for emissions testing responsible official that the conduct such tests using crib wood and and safety testing, and will improve manufacturer has complied with all cord wood. Under Proposed Step 1, enforcement by providing for more requirements of the subpart and that the manufacturers would have the option of frequent on-site inspections of manufacturer understands that he or she selecting which of these test results to manufacturing facilities and remains responsible for compliance use to show compliance with the laboratories. For example, safety regardless of noncompliance by the emissions standards. In other words, we

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are proposing to require manufacturers operated in accordance with the owner’s state, local, or tribal governments or to conduct two separate tests, one with manual and the appliances must not be communities. The $100 million crib wood and one with cord wood. We altered in any way to circumvent the threshold can be triggered by either are also proposing that manufacturers be design and operation of a certified costs or benefits, or a combination of required to report the results of both appliance. Key provisions for them. Accordingly, the EPA submitted tests to the EPA, but manufacturers can manufacturers emphasize the this action to OMB for review under choose to certify with either crib or cord importance of complying with the label Executive Orders 12866 and 13563 (76 wood under Proposed Step 1. Under requirements and the need to maintain FR 3821, January 21, 2011) and any Proposed Step 2, manufacturers would current certification for all heaters that changes made in response to OMB be required to show compliance testing are offered for sale. The intent of the recommendations have been with cord wood. delegation section is to clarify the documented in the docket for this We are also proposing to revise the regulatory provisions for which the EPA action. test methods to require the addition of has retained sole enforcement authority In addition, the EPA prepared an 1-hour filters for each test run to gather (definitions, compliance and analysis of the potential costs and data regarding startup and anticipated certification, test methods and benefits associated with this action. peaks. Further, we are proposing new procedures, laboratory accreditation, This analysis is contained in the RIA for compliance requirements for Step 2 reporting and recordkeeping, revocation this proposed rule. A copy of the with emissions limits at the lowest burn of certification, and hearings and analysis is available in the docket for rate (Category 1) and the maximum burn appeals procedures). However, we have this action. rate (Category 4), not a weighted average proposed to include the ability to A summary of the monetized benefits of the four burn rates, as in the current delegate provisions to state, local or and net benefits for the proposed rule at 1988 NSPS. tribal agencies where local enforcement discount rates of 3 percent and 7 Based on the extensive consensus is essential, such as enforcement of percent is in Table 8 of this preamble, development process, history of the permanent labels and owner’s manual and a more detailed discussion of the subpart AAA NSPS and hydronic heater content, and presentation of false or benefits is found in section IV.B of this voluntary partnership program emission misleading information. Note that when preamble. For more information on the test experience, and review of similar the EPA ‘‘delegates’’ enforcement benefits analysis, please refer to the RIA international standards, we believe the authority, we retain our authority to for this rulemaking, which is available proposed methods reflect state-of-the-art enforce while allowing the delegatees in the docket. test methods. However, we request also to be able to enforce the delegated B. Paperwork Reduction Act specific comment on test method related provisions. Also note that the The information collection issues and any data supporting such delegations are upon request, not a issues or concerns. requirements in this proposed rule have requirement by the EPA. been submitted for approval to OMB F. What other changes and additions to We are proposing to replace the under the Paperwork Reduction Act, 44 the administrative requirements are we current subpart AAA hearing and U.S.C. 3501 et seq. Information proposing? appeal procedures with a streamlined Collection Request (ICR) documents Consistent with Executive Order Petition for Review process and also use have been prepared for each proposed 13563: Improving Regulation and this process in subparts QQQQ and subpart. The subpart AAA ICR has been Regulatory Relief, we reviewed the RRRR. This process would allow assigned the EPA ICR number 1176.10, entire current subpart AAA to identify accredited laboratories and which is a revision of the currently information that is no longer relevant or manufacturers to contest audit test approved ICR number 1176.09. The useful and removed associated reporting findings, laboratory accreditations, subpart QQQQ ICR is a new collection, and recordkeeping requirements. For certification denials, and certification which has been assigned the EPA ICR example, because of the changes in the revocations by submitting a written number 2442.01. The subpart RRRR ICR audit procedures, we do not believe it request and supporting documentation also is a new collection, which has been is necessary for manufacturers to keep to the EPA. This process would allow assigned the EPA ICR number 2443.01. records of the number of affected for expedited review and resolution. We The new information collection appliances that are sold each year, by request specific comments on this requirements are not enforceable until certified model lines, for purposes of proposed process and other ways to OMB approves them. these subparts. improve or streamline procedures while The proposed rules would require The prohibitions section in each of preserving the integrity of the program. manufacturers of new residential wood the proposed subparts (§ § 60.538, VI. Statutory and Executive Order heating devices to submit applications 60.5480, 60.5492) is based substantially Reviews for certification of model lines, to on the current prohibitions section in submit results of emissions tests subpart AAA. Similarly, the delegation A. Executive Order 12866: Regulatory conducted to demonstrate that the section in each proposed subpart Planning and Review and Executive model lines would comply with the (§ § 60.539a, 60.5482, 60.5494) is based Order 13563: Improving Regulation and standards and produce certified units primarily on the current delegation Regulatory Review according to a quality control plan section in subpart AAA. In general, we Under Section 3(f)(1) of Executive approved by an independent certifying believe these delegations have worked Order 12866 (58 FR 51735, October 4, body. Manufacturers must submit a well and are still appropriate with some 1993), this action is an ‘‘economically notification of the initial test and clarifications and additions. The intent significant regulatory action’’ because it biennial reports that each certified of the prohibitions section is to clarify is likely to have an annual effect on the model line remains unchanged. They the responsibility of owners and economy of $100 million or more or must also maintain records of all operators and manufacturers to comply adversely affect in a material way the certification data, maintain results of with the proposed subparts. Key economy, a sector of the economy, quality assurance program inspections provisions for owners and operators productivity, competition, jobs, the and emissions test data, and seal and emphasize that appliances must be environment, public health or safety, or store the tested appliance.

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Consistent with the current ICR for hours per year at a total labor cost of include small businesses, small subpart AAA, we have included costs to $169,745 per year. The ICR estimates organizations and small governmental manufacture and apply permanent that capital and operation and jurisdictions. labels (for all models) on each maintenance (O&M) costs would be For purposes of assessing the impacts applicable unit prior to sale. These $715,796 per year. The average annual of this proposed rule on small entities, labels provide important compliance labor burden per response is 32 hours. small entity is defined as: (1) A small information to enforcement officials. The estimated burden for proposed business that is primarily engaged in Test laboratories that want to conduct subpart RRRR is based on an estimated manufacturing heating equipment NSPS certification testing would need to 48 respondents (45 manufacturers and 3 (except electric and warm air furnaces), apply for accreditation, conduct initial testing laboratories) that would be such as heating boilers (heaters), heating and biennial proficiency testing and subject to the rule. The number of total stoves, floor and wall furnaces, and wall report the results of all such testing. annual responses for subpart RRRR is and baseboard heating units, as defined Accredited test laboratories would also estimated at 108. The annual burden for by NAICS code 333414 with fewer than be required to participate in an audit this information collection averaged 500 employees, or is primarily engaged compliance program. Finally, the over the first 3 years of this ICR is in manufacturing air-conditioning and accredited laboratories must maintain estimated to be a total of 2,044 labor warm air heating equipment as defined records of all certification tests, hours per year at a total labor cost of by NAICS code 333415 with fewer than proficiency tests and compliance audit $162,589 per year. The ICR estimates 750 employees, or is primarily engaged test data. that capital and operation and in masonry contracting, as defined by The required notifications are used to maintenance (O&M) costs would be NAICS code 238140 with annual inform the agency when a new model $89,037 per year. The average annual receipts less than 14 million dollars line is expected to be tested. The EPA labor burden per response is 19 hours. (based on Small Business may then observe the testing operation, Burden is defined at 5 CFR 1320.3(b). Administration size standards); (2) a if desired. Emissions test reports are An agency may not conduct or small governmental jurisdiction that is a needed as these are the agency’s record sponsor, and a person is not required to government of a city, county, town, of a model line’s initial capability to respond to, a collection of information school district or special district with a comply with the emission standard, and unless it displays a currently valid OMB population of less than 50,000; and (3) serve as a record of the operating control number. The OMB control a small organization that is any not-for- conditions under which compliance numbers for the EPA’s regulations in 40 profit enterprise which is independently was achieved. CFR are listed in 40 CFR part 9. Adequate recordkeeping and To comment on the agency’s need for owned and operated and is not reporting are necessary to ensure this information, the accuracy of the dominant in its field. compliance with these standards as provided burden estimates, and any Pursuant to section 603 of the RFA, required by the CAA. The information suggested methods for minimizing the EPA prepared an initial regulatory collected from recordkeeping and respondent burden, the EPA has flexibility analysis (IRFA) that examines reporting requirements is also used for established a public docket for this rule, the impact of the proposed rule on small targeting inspections and is of sufficient which includes this ICR, under Docket entities along with regulatory quality to be used as evidence in court. ID number EPA–HQ–OAR–2009–0734. alternatives that could reduce that As discussed earlier, we have reviewed Submit any comments related to the ICR impact. The IRFA contained within the all the current requirements and are to the EPA and OMB. See ADDRESSES RIA for this proposed rule is available proposing to remove the portions of the section at the beginning of this notice for review in the docket and is recordkeeping that are not necessary. for where to submit comments to the summarized below: • The estimated burden for proposed EPA. Send ICR-related comments to Reason Why Action Is Being subpart AAA is based on an estimated OMB at the Office of Information and Considered. As discussed earlier in this 72 respondents (66 manufacturers and 6 Regulatory Affairs, Office of preamble, this proposal was developed testing laboratories) that would be Management and Budget, 725 17th following CAA section 111(b)(1)(B) subject to the rule. The number of total Street NW., Washington, DC 20503, review of the existing residential wood annual responses for subpart AAA is Attention: Desk Office for EPA. Since heater NSPS. estimated at 265. The annual burden for OMB is required to make a decision • Statement of Objectives and Legal this information collection averaged concerning the ICR between 30 and 60 Basis of Proposed Rule. As discussed over the first 3 years of this ICR is days after February 3, 2014, a comment earlier in this preamble, the EPA is estimated to be a total of 6,489 labor to OMB is best assured of having its full proposing to amend Standards of hours per year at a total labor cost of effect if OMB receives it by March 5, Performance for New Residential Wood $516,188 per year. The ICR estimates 2014. The final rule will respond to any Heaters and to add two new subparts: that capital and the associated operation OMB or public comments on the Standards of Performance for New and maintenance (O&M) costs for these information collection requirements Residential Hydronic Heaters and systems would be $1,452,177 per year. contained in this proposal. Forced-Air Furnaces and Standards of The average annual labor burden per Performance for New Residential response is 24 hours. C. Regulatory Flexibility Act Masonry Heaters. This proposal would The estimated burden for proposed The Regulatory Flexibility Act (RFA) achieve several objectives, including subpart QQQQ is based on an estimated generally requires an agency to prepare applying updated emission limits that 41 respondents (37 manufacturers and 4 a regulatory flexibility analysis of any reflect BSER; improving coverage of the testing laboratories) that would be rule subject to notice and comment broad suite of residential wood heaters; subject to the rule. The number of total rulemaking requirements under the improving the test methods; and annual responses for subpart QQQQ is Administrative Procedure Act or any streamlining the certification process. estimated at 67. The annual burden for other statute unless the agency certifies This proposal does not include any this information collection averaged that the rule will not have a significant requirements on heaters that are solely over the first 3 years of this ICR is economic impact on a substantial fired by gas or oil. This proposal does estimated to be a total of 2,134 labor number of small entities. Small entities not affect existing heaters. This proposal

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was developed under the authority of will have annualized costs of greater wood-burning appliance manufacturers CAA section 111. than 1 percent of their sales in all (fireplaces, cook stoves), equipment • Description and Estimate of the industries except NAICS 332510, suppliers, chimney sweeps, test Number of Small Entities. As discussed 333414 and 423720 with fewer than 20 laboratories, masons and trade earlier in this preamble, small entities employees, and NAICS 236115, 238140 associations. Once the official pre-Panel that the EPA anticipates being affected and 442299 with receipts less than $10 process began and potential SERs were by this proposal would include almost million. Those establishments in NAICS identified, the EPA held an outreach all manufacturers of residential wood 332510, 333414 and 423720 with cost- meeting with the potential SERs and heaters. We estimate that roughly 250– to-receipt ratios higher than 1 percent invited representatives from the Office 300 U.S. companies manufacture account for 80 percent of small entities of Advocacy of the Small Business residential wood heaters. We believe affected in these industries. Administration (OA/SBA) and the that approximately 90 percent of these Establishments in NAICS 236115, Office of Information and Regulatory manufacturers meet the SBA small- 238140 and 442299 with cost-to-receipt Affairs within the Office of Management entity definition of having fewer than ratios higher than 1 percent account for and Budget (OIRA/OMB) on June 29, 500 employees. 99 percent of small entities affected in 2010, to solicit their feedback on the • Description of reporting, these industries. upcoming proposed rulemaking. recordkeeping and other compliance • Relevant federal rules that may Representatives from 26 of the 30 requirements. The reporting and overlap or conflict with this proposal. companies and organizations that we recordkeeping requirements are There are no other relevant federal selected as potential SERs for this described in the section immediately rules. SBREFA process participated in the above (B. Paperwork Reduction Act). As • Significant alternatives. The meeting (in person and by phone). At discussed there, the information significant alternatives to this proposal, that meeting, the EPA solicited written collection requirements (ICR), including especially those that might minimize comments from the potential SERs, reporting and recordkeeping, in this potential impacts on small entities, are which were later summarized and proposed rule have been submitted for presented in the remainder of this shared with the Panel as part of the approval to OMB under the Paperwork section. convening document. Reduction Act, 44 U.S.C. 3501 et seq. As required by section 609(b) of the The SBAR Panel convened on August For subpart AAA, we estimated the RFA, as amended by the Small Business 4, 2010. The Panel consisted of potential annual burden averaged over Regulatory Enforcement Fairness Act representatives of the EPA, OA/SBA and the first 3 years of the ICR to be a total (SBREFA), the EPA also convened a OIRA/OMB. The Panel held a formal of 6,489 labor hours per year at a total Small Business Advocacy Review Panel outreach meeting/teleconference with labor cost of $516,188 per year and an (Panel) to obtain advice and the SERs on August 25, 2010. To help average annual labor burden per recommendations of representatives of the SERs prepare for this meeting, on response of 24 hours. For subpart the small entities that potentially would August 11, 2010, the Panel sent a list of QQQQ, we estimated 2,134 labor hours be subject to the rule’s requirements. questions, preliminary cost information per year at a total labor cost of $169,745 The following paragraphs describe the and other materials to each of the SERs per year and an average annual labor process, the type of small entity via email. Additional materials were burden per response of 32 hours. For representatives, the outreach efforts and emailed to the SERs on August 19, 2010. subpart RRRR, we estimated 2,044 labor the Panel members. The Panel provided the opportunity for hours per year at a total labor cost of Well before beginning the formal questions and comment during the $162,589 per year and an average SBREFA process, the EPA actively meeting on various aspects of the annual labor burden per response of 19 engaged in outreach with HPBA, the proposal being developed, including the hours. Masonry Heater Association (MHA) and expanded scope of the rule, changes to • Description of other compliance PFI and many of their member the current requirements under requirements. As described earlier in companies to discuss the rule under consideration, preliminary cost this preamble, this proposal would development and to provide these information and follow up from the June apply updated emission limits that contacts with an early opportunity to 29, 2010, meeting on the SERs’ ideas for reflect the current best systems of ask questions and discuss their regulatory flexibility. During the August emission reduction and improve the concerns.67 The EPA provided each 25 meeting, SERs voiced general coverage of the expanded variety of small business with general information support for the planned proposed rule types of residential wood heaters. We on the SBREFA process and background and shared specific concerns with the estimate the proposed NSPS’s total information on the NSPS rulemaking Panel members. As a result of this annualized average nationwide costs process and current schedule. meeting, the EPA received many useful would be $15.7 million (2010$) over the Based on consultations with the Small verbal comments, and the EPA received 2014 through 2022 period. The Business Administration, and resulting many helpful written comments by economic impacts for industries affected from solicited self-nominations, we September 10, 2010. by this proposed rule over this same prepared a list of 30 potential Small Consistent with the RFA/SBREFA period range from 4.3 percent for Entity Representatives (SERs), from requirements, the Panel evaluated the manufacture of wood heater/stove residential wood heating appliance assembled materials and small-entity models to as much as an 6.4 percent manufacturers (wood heaters, pellet comments on issues related to elements compliance cost-to-sales estimate for heaters/stoves, hydronic heaters, forced- of the IRFA. A copy of the Panel final manufacture of single burn rate wood air furnaces and masonry heaters), other full report is included in the docket for heater models. These impacts do not this proposed rule. We invite comments presume any pass-through of impacts to 67 Also, as noted in this preamble in the on the report. A summary of the Panel consumers. With pass-through to discussion of development of the hydronic heater recommendations is presented below. consumers, these impact estimates to emission limits, the EPA worked with the hydronic We have attempted to follow the Panel’s heater industry in 2006 to develop a voluntary manufacturers will decline partnership program to encourage manufacture of recommendations to the degree we can proportionate to the degree of pass- cleaner models, www.epa.gov/burnwise/ while also ensuring that the options are through. We estimate that small entities participation. practicable, enforceable,

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environmentally sound and consistent emissions per unit, operating hours per certifiers. Further, this proposal asks for with the CAA. For those year, and the distribution of emissions specific comments on the schedules. recommendations not adopted by the across the unit types within each • The Panel recommended that the EPA, we have included an explanation category under discussion at that time to EPA continue to allow manufacturers to for why we rejected them. better understand the magnitude of test a representative unit for a model Many of the SERs and the Panel had emissions reductions that may or may line rather than testing and reporting concerns about the breadth of this not be reduced through alternative results for each individual unit. This rulemaking and the challenges the EPA regulatory and non-regulatory proposal continues to allow that. • faces in conducting rulemaking for all of mechanisms. As discussed earlier, the The Panel recommended that the these source categories at one time and EPA has considered such EPA consider emphasizing that the the challenges that the small businesses characterizations and alternatives. NSPS will address only new units. This will face in having to comply with The following is a list of Panel proposal emphasizes that it does not standards for all of these source affect existing units. recommendations and how we • categories at one time. The Panel incorporated them into this proposal: In the Panel Report, SBA and OMB recommended that the EPA not move recommended that the EPA should • The Panel recommended that the forward with proposed emission limits consider focusing efforts first on EPA should consider focusing efforts for pellet stoves, indoor hydronic emissions sources that have the greatest first on emissions sources that have the heaters, biomass pellet stoves, masonry potential to impact public health greatest potential to impact public heaters, masonry fireplace kits, site-built through the magnitude of emissions and health through the magnitude of masonry fireplaces, coal stoves, cook population exposure. We have focused emissions and population exposure. stoves, bake ovens (including Native our efforts. The Panel noted the adverse This proposal focuses on those sources. American Traditional Bake Ovens), effects of the 1988 NSPS on numerous • The Panel encouraged the EPA to wood heater/stove manufacturers, and camp stoves, outdoor fireplaces and consider flexibilities that will most chimineas. This proposal establishes the need to carefully develop a rule that directly minimize the small business will minimize business closures, while emission limits for pellet stoves/heaters, burdens, for example delayed still achieving significant emission which compete with adjustable burn compliance dates for low volume reductions. All Panel members believed rate wood stoves/heaters in the ‘‘room production. The delayed compliance that the EPA had adequate information heaters’’ consumer marketplace. There approach was predicated on the concept to move forward with developing is confusion in the marketplace as to that it will take a number of years for revisions that apply to the residential why some pellet stoves are regulated manufacturers to recover the costs of the wood heater categories that are already and why some are not. As discussed R&D investment in order to achieve regulated by the 1988 NSPS. However, earlier in this preamble, the potential compliance. This proposal has two Panel members recommended that exclusion of pellet stoves with greater incorporated a stepped approach for the EPA Administrator consider taking than 35-to-1 air-to-fuel ratio is an more time to collect additional emission limits and asks for comments unintended consequence of the 1988 on other alternative approaches. actual intention of not setting emission information to better determine BSER • for the certified wood heater category. The Panel recommended that the limits for open fireplaces with high They concluded that the EPA did EPA consider the availability and excess combustion air that do not present to the Panel enough information feasibility of certification, testing labs, operate as effective heaters. We believe to justify regulation of this subcategory, testing standards and other that not moving forward on pellet stoves but the EPA did not adequately inform requirements. In particular, the Panel now would contribute to further the SERs about the other categories. recommended that the EPA consider confusion and an uneven playing field These two Panel members believed it ways to streamline compliance in the marketplace. Further, the was unclear whether adoption of a more certification, identifying flexible emission levels we are proposing for stringent standard for new sources approaches and procedures that will pellet stoves/heaters are at the same would slow the adoption of new, reduce the burden and time for level as the proposed wood stove/heater cleaner burning heaters, potentially manufacturers to complete the standards and are already achieved by delaying improvements in air quality. application, testing and approval most pellet stove/heater models and The two Panel members further process for new model lines. For thus do not impose substantial believed, based on the information example, the Panel recommended that compliance costs. Similarly, masonry available from the EPA and the SERs at the EPA consider allowing the use of heaters compete in the residential wood that time, that they could not conclude International Standards Organization heaters consumer marketplace and that a nationwide NSPS limit on the (ISO)-accredited laboratories and there is confusion as to why they are other categories would be the preferred certifying bodies to expand the number regulated by some states, but not the approach for reducing wood heater of facilities that would be required for EPA, and are even banned by some air emissions. testing and certification of the new districts because masonry heaters are Following the Panel’s convening on residential solid biomass combustion not EPA-certified. Most masonry heaters August 4, 2010, the EPA collected appliances. Additionally, the Panel are effective heaters and relatively clean additional information, and we refined recommended that the EPA consider and efficient, especially compared to the economic and technical analyses different compliance time frames for pre-NSPS wood stoves. Requiring valid based, in part, on input from the SERs different product categories to reduce certification testing and reporting and as the basis for this proposal. The Panel the potential for logjams at test labs and providing that information to regulators recommended that the EPA the overall impact on companies that and consumers and the public will help Administrator consider assessing the manufacture multiple categories. This inform all as they strive to make availability of data to better characterize proposal includes stepped emission appropriate choices on wood heating each source category prior to limits for different categories and adds and air quality. That is, the masonry considering proposal of standards. In ISO-accredited laboratories and ISO- heaters can be an excellent emission particular, the Panel recommended that accredited certifying bodies to increase reduction choice for replacing higher the EPA consider characterizing the the availability of laboratories and emission pre-NSPS wood stoves and

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should be encouraged over old wood heaters because the EPA believes that distribution of power and stoves in most air sheds. Further, the the SERs already have had multiple responsibilities among the various emission levels we are proposing are opportunities to address those levels of government.’’ already achieved by most masonry subcategories. Furthermore, the EPA has This proposed rule does not have heater designs and we allow extra time conducted numerous meetings after the federalism implications. It would not for small manufacturers. This proposal Panel process was completed to provide have substantial direct effects on the addresses indoor hydronic heaters much additional information (e.g., states, on the relationship between the because they compete with outdoor technical discussions of refined national government and the states, or hydronic heaters and forced-air alternatives) and updates to on the distribution of power and furnaces in the ‘‘central heaters’’ stakeholders including the SERs and responsibilities among the various consumer marketplace and there other small businesses and other levels of government, as specified in already is confusion as to why some are interested parties. We emphasize that Executive Order 13132. The proposed regulated by some states and some are this proposal is not a final rule but rule would not impose any not. Further, the magnitude of their rather it is a proposal for public review requirements on state and local emissions is of great concern and BSER and comment. We welcome comments governments. Thus, Executive Order controls are highly justified on cost- and data on all aspects of this proposal 13132 does not apply to this proposed benefit grounds. The remainder of the that will help us prepare the final rule. Although section 6 of Executive appliances listed above are not included rulemaking. Order 13132 does not apply to this in this proposal. As noted earlier, a copy of the Panel proposed action, the EPA did consult • In the Panel report, SBA and OMB final full report is included in the with representatives of state and local recommended that ‘‘where EPA docket for this proposed rule. We invite governments in developing this action. estimates that the nationwide emissions comments on the report and on all In the spirit of Executive Order 13132 are less than 300 tons per year (or some aspects of the proposal and its impacts and consistent with the EPA policy to other value) . . . the EPA Administrator on small entities. promote communications between the should consider options of not issuing EPA and state and local governments, D. Unfunded Mandates Reform Act an NSPS but rather consider allowing the EPA specifically solicits comment Regions and States to control such This proposed rule contains no on this proposed rule from state and sources and consider other efforts, federal mandates under the provisions local officials. including voluntary standards to lower of Title II of the Unfunded Mandates F. Executive Order 13175: Consultation emissions.’’ We considered this Reform Act of 1995 (UMRA), 2 U.S.C. and Coordination With Indian Tribal recommendation but we could not find 1531–1538 that may result in Governments a legal or policy justification for an expenditures of $100 million or more arbitrary cutoff and it is not included in for state, local or tribal governments, in This proposed action does not have this proposal. Also, we note that many the aggregate, or to the private sector in tribal implications, as specified in states are prohibited from setting any 1 year. This proposed action Executive Order 13175 (65 FR 67249, control requirements more stringent imposes no enforceable duty on any November 9, 2000). This proposed rule than the EPA requirements and all state, local or tribal governments. The would not impose any requirements on states have concerns about the lack of nationwide annualized average tribal governments; thus, Executive resources necessary to develop and compliance cost of this proposed rule Order 13175 does not apply to this adopt and implement state standards or for directly affected appliances is $15.7 action. Although Executive Order 13175 voluntary programs, especially when million/yr in the 2014–2022 timeframe does not apply to this action, we most believe it is the EPA’s (2010$). Therefore, this proposed rule recognize that the air quality and public responsibility, and some have sued the would not be subject to the health benefits to be achieved by this EPA for failure to review and requirements of sections 202 or 205 of rule would benefit tribes, and we promulgate national standards on time the UMRA. conducted outreach to tribal as statutorily required. Further, the EPA This proposed rule would also not be environmental staff and consulted with does not agree with this subject to the requirements of section representatives of tribal officials in recommendation, especially considering 203 of UMRA because it contains no developing this action. the strong recommendations by many regulatory requirements that might During the development of this states that the EPA regulate all significantly or uniquely affect small proposed rulemaking, the EPA residential wood heaters as soon as governments. The proposed rule would conducted outreach with numerous possible to provide another tool to help not apply to such governments and tribal representatives to provide them with their efforts to reduce wood would impose no obligations upon opportunities for input prior to smoke emissions. As stated elsewhere in them. development of the proposed rule. We this proposal, the EPA is not proposing provided information at the July 2010, E. Executive Order 13132: Federalism standards at this time for biomass pellet National Tribal Forum/National Tribal heater/stoves that are designed to only Executive Order 13132 (64 FR 43255, Air Association (NTAA) meeting in combust biomass other than wood, bake August 10, 1999) requires the EPA to Albuquerque, New Mexico, and the ovens, fireplaces, coal-only stoves, develop an accountable process to November 2010, EPA Region 10 Tribal chimineas, ceremonial fires and ensure ‘‘meaningful and timely input by Leaders Summit in Juneau, Alaska. We commercial pizza ovens. state and local officials in the also presented information on this • Two Panel members recommended development of regulatory policies that proposed rulemaking in the April 2010, that if the EPA decides to later pursue have federalism implications.’’ ‘‘Policies issue of Tribal Air News and during the regulation of categories other than that have federalism implications’’ are EPA/NTAA tribal workgroup conference certified wood heaters, the EPA should defined in the Executive Order to calls (April 2010, July 2010, August convene another Panel to address those include regulations that have 2010, and May 2013). Specifically, we subcategories at the appropriate time. ‘‘substantial direct effects on the states, received input from the EPA/NTAA The EPA does not agree with this on the relationship between the national tribal workgroup members on culturally recommendation for residential wood government and the states, or on the relevant exclusions from the proposed

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standards. We agreed with their input, general population due to residential are developed or adopted by VCS clarified that we do not intend to wood smoke emissions. One of the bodies. The NTTAA directs the EPA to regulate ceremonial fires, and added a demographic variables examined for provide Congress, through OMB, definition to the rule to exclude this report was that of children 18 years explanations when the Agency decides traditional Native American bake ovens. and younger. not to use available and applicable On February 18, 2011, the EPA mailed This proposed rule is expected to voluntary consensus standards. letters to about 600 elected tribal leaders reduce environmental impacts for This proposed rulemaking involves in the U.S. offering an opportunity for everyone, including children. This technical standards. The EPA proposes consultation on this proposal. We action proposes emissions limits at the to use several VCS test methods, in full received requests from six tribes. These levels based on BSER, as required by the or in part, including the following tribes agreed to discuss this proposal CAA. Based on our analysis, we believe methods available for review at the with us in a conference call held on this rule would not have a ASTM Web site www.astm.org/EPA- March 22, 2011. The tribes were very disproportionate impact on children, review: E2515–10 ‘‘Standard Test supportive of this proposal and and, in fact, will result in improvements Method for Determination of Particulate provided some helpful clarifications of to children’s health. Matter Emissions Collected by a definitions (e.g., Native American bake The public is invited to submit Dilution Tunnel’’ (See also ASTM ovens) that we have incorporated in this comments or identify peer-reviewed WK20442 proposed revision and ASTM proposal. studies and data that assess effects of WK31433 proposed revision); E2779–10 We plan to continue to provide early life exposure to smoke from ‘‘Standard Test Method for Determining updates on the rule on the EPA/NTAA residential wood heaters. Particulate Matter Emissions from Pellet conference calls and to offer H. Executive Order 13211: Actions Heaters;’’ E2780–10 ‘‘Standard Test opportunities to tribal leaders for Concerning Regulations That Method for Determining Particulate consultation. The EPA specifically Significantly Affect Energy Supply, Matter Emissions from Wood Heaters;’’ solicits additional comment on this Distribution, or Use E2618–13 ‘‘Standard Test Method for proposed action from tribal officials. Measurement of Particulate Matter This proposed rule is not a Emissions and Heating Efficiency of G. Executive Order 13045: Protection of ‘‘significant energy action’’ as defined in Outdoor Solid Fuel-Fired Hydronic Children From Environmental Health Executive Order 13211 (66 FR 28355, Heating Appliances;’’ ASTM E2817–11 Risks and Safety Risks May 22, 2001), because it is not likely ‘‘Standard Test Method for Test Fueling Executive Order 13045, ‘‘Protection of to have a significant adverse effect on Masonry Heaters;’’ ASTM WK26558 Children from Environmental Health the supply, distribution, or use of ‘‘Specification for Calculation Method Risks and Safety Risks’’ (62 FR 19885, energy. Further, we have concluded that for Custom Designed, Site Built April 23, 1997), applies to any rule that: this rule is not likely to have any Masonry Heaters.’’ Also, we propose to (1) Is determined to be ‘‘economically significant adverse energy effects. In use, in part, the following test method significant,’’ as defined under Executive general, we expect the NSPS to improve available for review at the CSA Web site Order 12866; and (2) concerns an technology, including energy efficiency. http://shop.csa.ca/en/canada/fuel- environmental health or safety risk that Reducing emissions and increasing burning-equipment/b4151-10/invt/ the EPA has reason to believe may have efficiency might increase the use of 27013322010/: CSA B415.1–10 a disproportionate effect on children. If wood fuel, which would relieve ‘‘Performance Testing of Solid-fuel- the regulatory action meets both criteria, pressure on traditional coal or burning Heating Appliances.’’ Finally, the EPA must evaluate the petroleum based energy sources. we propose to use, in part, the following environmental health or safety effects of However, as described in section IV.E, test method prepared by the European the planned rule on children and it is difficult to determine the precise Union: EN 303–5 ‘‘Heating boilers for explain why the planned regulation is energy impacts that might result from solid fuels, hand and automatically preferable to other potentially effective this rule. This is because wood-fueled stoked nominal heat output of up to and reasonably feasible alternatives appliances compete with other biomass 1025 MBtu—Terminology, considered by the Agency. forms as well as more traditional oil, requirements, testing, and marketing.’’ This proposed rule is not subject to electricity and natural gas. We have not We believe that all the methods listed Executive Order 13045 (62 FR 19885, determined the potential conversion to above have some positive aspects that April 23, 1997) because the agency does other types of fuels and their associated can help stakeholders determine not believe the environmental health appliances if the consumer costs of emissions under various operation risks or safety risks addressed by this wood-fueled appliances increase and at conditions. For more details on each action present a disproportionate risk to what level that increase would drive method, please refer to the discussions children. The report, ‘‘Analysis of consumer choice. in Section III of this preamble. Exposure to Residential Wood In addition, we determined that the I. National Technology Transfer and VCS ASTM E871–82 (2006), ‘‘Standard Combustion Emissions for Different Advancement Act Socio-Economic Groups,’’ 68 shows that Test Method for Moisture Analysis of Section 12(d) of the National on a nationwide basis, cancer risks due Particulate Wood Fuels’’ is acceptable as Technology Transfer and Advancement to residential wood smoke emissions an alternative to Methods 5H and 28. Act of 1995 (‘‘NTTAA’’), Public Law The search identified five other VCS among disadvantaged population groups 104–113 (15 U.S.C. 272 note) directs the that were potentially applicable for this generally are lower than the risks for the EPA to use voluntary consensus rule in lieu of the EPA reference 68 ‘‘Analysis of Exposure to Residential Wood standards (VCS) in its regulatory methods. However, the EPA determined Combustion Emissions for Different Socio- activities unless to do so would be that the five candidate VCS would not Economic Groups, Revised Draft Report.’’ Prepared inconsistent with applicable law or be practical due to lack of equivalency, for Gil Wood, U.S. EPA, Office of Air Quality otherwise impractical. VCS are documentation, validation data and Planning and Standards, Research Triangle Park, NC. Prepared by EC/R Inc., EPA Contract No. EP– technical standards (e.g., materials other important technical and policy D–05–085, Work Assignment No. 4–3. April 22, specifications, test methods, sampling considerations. The five VCS and other 2010. procedures and business practices) that information and conclusion, including

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the search and review results, are in the from new residential wood heaters and, Custom Designed, Site Built Masonry docket for this proposed rule. The EPA thus, would decrease the amount of Heaters, IBR approved for welcomes comments on this aspect of these emissions to which all affected § 60.5488(c)(1). the proposed rulemaking. Specifically, populations are exposed. * * * * * we invite the public to identify List of Subjects in 40 CFR Part 60 (p) This material is available for potentially applicable voluntary purchase from the Canadian Standards consensus standards and to explain why Environmental protection, Association (CSA) at http://shop.csa.ca/ such standards, in whole or in part, Administrative practice and procedure, en/canada/fuel-burning-equipment/ should or should not be used in this Air pollution control, Carbon monoxide, b4151-10/invt/27013322010/. Hazardous substances, regulation. (1) CSA B415.1–10, Performance Intergovernmental relations, Particulate Testing of Solid-fuel-burning Heating J. Executive Order 12898: Federal matter, Reporting and recordkeeping Appliances, IBR approved for Actions To Address Environmental requirements. Justice in Minority Populations and § 60.534(d) and § 60.5476(c) and (d). Low-Income Populations Dated: January 3, 2014. (2) [Reserved] Gina McCarthy, Executive Order 12898 (59 FR 7629, ■ 3. Revise subpart AAA to read as February 16, 1994) establishes federal Administrator. follows: executive policy on environmental For the reasons stated in the Subpart AAA—Standards of Performance justice. Its main provision directs preamble, title 40, chapter I, of the Code for New Residential Wood Heaters federal agencies, to the greatest extent of Federal Regulations is proposed to be Sec. practicable and permitted by law, to amended as follows: 60.530 Am I subject to this subpart? make environmental justice part of their 60.531 What definitions must I know? mission by identifying and addressing, PART 60—STANDARDS OF 60.532 What standards and associated as appropriate, disproportionately high PERFORMANCE FOR NEW SOURCES requirements must I meet and by when? and adverse human health or 60.533 What compliance and certification ■ 1. The authority citation for part 60 environmental effects of their programs, requirements must I meet and by when? continues to read as follows: policies and activities on minority 60.534 What test methods and procedures Authority: 42 U.S.C. 7401–7671q. must I use to determine compliance with populations and low-income the standards and requirements for populations in the U.S. The EPA defines Subpart A—GENERAL PROVISIONS certification? ‘‘Environmental Justice’’ to include 60.535 What procedures must I use for meaning involvement of all people ■ 2. Section 60.17 is amended by: laboratory accreditation or certifying regardless of race, color, national origin ■ a. Adding paragraphs (a)(109) through body accreditation? or income with respect to the (a)(115); and 60.536 What requirements must I meet for development, implementation and ■ b. Adding paragraph (p) to read as permanent labels and owner’s manuals? enforcement of environmental laws, follows: 60.537 What records must I keep and what regulations and policies. reports must I submit? As discussed earlier, the report, § 60.17 Incorporations by reference. 60.538 What activities are prohibited under this subpart? ‘‘Analysis of Exposure to Residential * * * * * 60.539 What Petition for Review procedures Wood Combustion Emissions for (a) * * * apply to me? Different Socio-Economic Groups,’’ (109) ASTM E871–82 (2006), 60.539a Who implements and enforces this shows that on a nationwide basis, Standard Test Methods for Moisture subpart? cancer risks due to residential wood Analysis of Particulate Wood Fuels, IBR 60.539b What parts of the General smoke emissions among disadvantaged approved for appendix A: Method 5H Provisions do not apply? population groups generally are lower and Method 28. than the risks for the general population (110) ASTM E2515–10, Standard Test Subpart AAA—Standards of due to residential wood smoke Method for Determination of Particulate Performance for New Residential emissions. Thus, we have determined Matter Emissions Collected by a Wood Heaters that this proposed rule would not have Dilution Tunnel, IBR approved for § 60.530 Am I subject to this subpart? disproportionately high and adverse § 60.534(c), § 60.5476(b) and (a) You are subject to this subpart if human health or environmental effects § 60.5488(b). you operate, manufacture, sell, offer for on minority, low-income or indigenous (111) ASTM E2779–10, Standard Test sale, import for sale, distribute, offer to populations because it increases the Method for Determining Particulate distribute, introduce, or deliver for level of environmental protection for all Matter Emissions from Pellet Heaters, introduction, into commerce in the affected populations without having any IBR approved for § 60.534(a)(2). United States, an affected wood heater disproportionately high and adverse (112) ASTM E2618–13 Standard Test specified in paragraphs (a)(1) or (a)(2) of human health or environmental effects Method for Measurement of Particulate this section: on any population, including any Matter Emissions and Heating Efficiency minority low-income or indigenous of Outdoor Solid Fuel-Fired Hydronic (1) Each adjustable burn rate wood heater with a current EPA certificate of population.69 This proposed rule Heating Appliances, IBR approved for compliance, single burn rate wood establishes national standards that § 60.5476(a)(2). heaters with a current EPA certificate of would reduce primarily PM emissions (113) ASTM E2780–10, Standard Test Method for Determining Particulate compliance, and each pellet stove with 69 ‘‘Analysis of Exposure to Residential Wood Matter Emissions from Wood Heaters, a current EPA certificate of compliance Combustion Emissions for Different Socio- IBR approved for § 60.534(a)(2). issued prior to [EFFECTIVE DATE OF Economic Groups, Revised Draft Report.’’ Prepared (114) ASTM E2817–11, Standard Test FINAL RULE] according to the for Gil Wood, U.S. EPA, Office of Air Quality Method for Test Fueling Masonry certification procedures in effect in this Planning and Standards, Research Triangle Park, NC. Prepared by EC/R Inc., EPA Contract No. EP– Heaters, IBR approved for § 60.5488(a). subpart at the time of certification that D–05–085, Work Assignment No. 4–3. April 22, (115) ASTM WK26558, New are manufactured on or after July 1, 2010. Specification for Calculation Method for 1988 are affected wood heaters.

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(2) All other residential wood heaters appliance capable of and intended for use of coal only, except for coal ignition under this subpart manufactured or sold residential space heating or domestic purposes. on or after [EFFECTIVE DATE OF water heating that is equipped with or Commercial owner means any person FINAL RULE] are affected wood heaters. installed with a damper or other who owns or controls a wood heater in (b) Each affected wood heater must mechanism to allow the operator to vary the course of the business of the comply with the provisions of this burn rate conditions, regardless of manufacture, importation, distribution subpart unless exempted under whether it is internal or external to the (including shipping and storage), or sale paragraphs (b)(1) through (b)(6) of this appliance. This definition does not of the wood heater. section. distinguish between heaters that are free Cookstove means a wood-fired (1) Affected wood heaters standing or fireplace inserts. appliance that is designed primarily for manufactured in the United States for Accredited test laboratory means a cooking food and that has the following export are exempt from the applicable test laboratory that is accredited for characteristics: emission limits of § 60.532 and the wood heater certification testing under (1) An oven, with volume of 0.028 requirements of § 60.533. § 60.535 or is an independent third- cubic meters (1 cubic foot) or greater, (2) Affected wood heaters used for party test laboratory that is accredited and an oven rack; (2) A device for measuring oven research and development purposes that by a nationally recognized accrediting temperatures; are never offered for sale or sold and entity under ISO–IEC Standard 17025 to (3) A flame path that is routed around that are not used for the purpose of perform testing using the test methods providing heat are exempt from the the oven; specified in § 60.534 and approved by (4) An ash pan; applicable emission limits of § 60.532 the EPA for conducting testing under (5) An ash clean-out door below the and the requirements of § 60.533. No this subpart. oven; more than 50 wood heaters At retail means the sale by a (6) The absence of a fan or heat manufactured per model line can be commercial owner of a wood heater to channels to dissipate heat from the exempted for this purpose. the ultimate purchaser. appliance; (3) Appliances that do not burn wood Camp stove (sometimes also called (7) A cooking surface measured in or wood pellets (such as coal-only cylinder stove or wall tent stove) means square inches or square feet that is 1.5 heaters that meet the definition in a portable stove equipped with a pipe or times greater than the firebox, which is § 60.531 or corn-only pellet stoves) are chimney exhaust capable of burning measured in cubic inches or cubic feet. exempt from the applicable emission wood or coal intended for use in a tent Example: A firebox of 2 cubic feet limits of § 60.532 and the requirements or other temporary structure used for would have a cooking surface of at least of § 60.533. hunting, camping, fishing, or other 3 square feet; (4) Cook stoves that meet the outdoor recreation. The primary (8) A portion of at least four sides of definition in § 60.531 are exempt from purpose of the stove is to provide space the oven is exposed to the flame path the applicable emission limits of heating, although cooking and heating during the heating cycle of the oven. A § 60.532 and the requirements of water may be additional functions. flue gas bypass may exist for § 60.533. Catalytic combustor means a device temperature control. (5) Camp stoves that meet the coated with a noble metal used in a Manufactured means completed and definition in § 60.531 are exempt from wood heater to lower the temperature ready for shipment (whether or not the applicable emission limits of required for combustion. packaged). § 60.532 and the requirements of Certifying entity means an Manufacturer means any person who § 60.533. independent third party that is constructs or imports into the United (6) Modification or reconstruction, as accredited by a nationally recognized States a wood heater. defined in § 60.14 and § 60.15 of accrediting entity under ISO–IEC Model line means all wood heaters offered for sale by a single manufacturer Subpart A will not, by itself, make a Standard 17020 to perform that are similar in all material respects. wood heater an affected facility under certifications, inspections and audits Particulate matter (PM) means total this subpart. under ISO–IEC Guide 17065 and (c) The following are not affected particulate matter including coarse PM approved by the EPA for conducting wood heaters and are not subject to this (PM10) and fine PM (PM2.5). certifications, inspections and audits subpart: Pellet stove means an enclosed, solid under this subpart. (1) Residential hydronic heaters and fuel burning device capable of and Coal-only heater means an enclosed, residential forced-air furnaces subject to intended for residential space heating or coal-burning appliance capable of space subpart QQQQ of this part. domestic water heating that is designed (2) Residential masonry heaters heating, or domestic water heating, specifically to burn wood pellet fuel subject to subpart RRRR of this part. which has all of the following that incorporates induced air flow, is (3) Appliances that are not residential characteristics: installed with an automatic pellet heating devices (for example, (1) An opening for emptying ash that feeder, and is a free standing room manufactured or site-built masonry is located near the bottom or the side of heater or fireplace insert. fireplaces). the appliance; Representative affected wood heater (4) Traditional Native American bake (2) A system that admits air primarily means an individual wood heater that is ovens that meet the definition in up and through the fuel bed; similar in all material respects to other § 60.531. (3) A grate or other similar device for wood heaters within the model line it shaking or disturbing the fuel bed or represents. § 60.531 What definitions must I know? power-driven mechanical stoker; Room heater means an enclosed, As used in this subpart, all terms not (4) Installation instructions that state wood-burning appliance capable of and defined herein have the meaning given that the use of wood in the stove, except intended for residential space heating. them in the Clean Air Act and subpart for coal ignition purposes, is prohibited Unless otherwise specified, these A of this part. by law; and devices include adjustable burn rate Adjustable burn rate wood heater (5) The model is listed by a nationally wood heaters, single burn rate wood means an enclosed, wood-burning recognized safety-testing laboratory for heaters and pellet stoves.

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Sale means the transfer of ownership methods and procedures in § 60.534(a) [EFFECTIVE DATE OF FINAL RULE] or or control, except that a transfer of through (c) until the current sold at retail for use in the United States control of an affected wood heater for certification expires as specified in on or after [6 MONTHS AFTER research and development purposes § 60.533(h)(1), or it is revoked by the EFFECTIVE DATE OF FINAL RULE] within the scope of § 60.530(b)(2) is not Administrator as specified in must comply with the emission limits a sale. § 60.533(l), whichever is first. After the specified in paragraphs (b)(1) or (b)(2) of Seasoned wood means wood with a certificate expires or is revoked, this section, as applicable. Unless moisture content of 20 percent or less. individual wood heaters in that model exempted under § 60.530, each single Similar in all material respects means line can no longer be manufactured or burn rate wood heater manufactured on that the construction materials, exhaust sold unless the manufacturer receives a or after [EFFECTIVE DATE OF FINAL and inlet air system, and other design new certificate of compliance from the RULE] or sold at retail on or after [6 features are within the allowed Administrator. MONTHS AFTER EFFECTIVE DATE OF tolerances for components identified in (1) An affected wood heater equipped FINAL RULE] must comply with the § 60.533(k). with a catalytic combustor must not emission limit specified in paragraph Single burn rate wood heater means discharge into the atmosphere any gases (b)(3) of this section. Compliance for all an enclosed, wood-burning appliance that contain particulate matter in excess sources must be determined by the test capable of and intended for residential of a weighted average of 4.1 g/hr (0.009 methods and procedures in § 60.534. space heating or domestic water heating lb/hr) as specified in the applicable test (1) An adjustable burn rate wood that is not equipped with or installed method. Particulate matter emissions heater or pellet stove that is an affected with a damper to allow the operator to during any test run at any burn rate that wood heater equipped with a catalytic vary burn rate conditions. is required to be used in the weighted combustor must not discharge into the Traditional Native American bake average as specified in the applicable atmosphere any gases that contain oven means a wood or other solid fuel test method must not exceed the value particulate matter in excess of a burning appliance that is designed calculated for ‘‘C’’ (rounded to 2 weighted average of 4.5 g/hr (0.01 lb/hr). primarily for use by Native Americans significant figures) calculated using the (2) An adjustable burn rate wood for food preparation, cooking, warming, following equation: heater or pellet stove that is an affected or for instructional, recreational, (i) At burn rates less than or equal to wood heater not equipped with a cultural or ceremonial purposes. 2.82 kg/hr (6.2 lb/hr), Valid certification test means a test catalytic combustor and capable of C=K BR+K that meets the following criteria: 1 2 making burn rate adjustments must not (1) The Administrator was notified Where: discharge into the atmosphere any gases about the test in accordance with BR = Burn rate in kg/hr (lb/hr) that contain particulate matter in excess § 60.534(f); C = Actual particulate matter emission rate of a weighted average of 4.5 g/hr (0.01 (2) The test was conducted by an in g/hr (lb/hr) per burn rate in a given lb/hr). test run (3) A single burn rate wood heater accredited test laboratory; K = 3.55 g/kg (0.00355 lb/lb) (3) The test was conducted on a wood 1 that is an affected wood heater must not K2= 4.98 g/hr (0.0.011 lb/hr) heater similar in all material respects to discharge into the atmosphere any gases other wood heaters of the model line (ii) At burn rates greater than 2.82 kg/ that contain particulate matter in excess that is to be certified; and hr (6.2 lb/hr), C = 15 g/hr (0.033 lb/hr). of 4.5 g/hr (0.01 lb/hr). (4) The test was conducted in (2) An affected wood heater not (c) 2020 Particulate Matter Standards. accordance with the test methods and equipped with a catalytic combustor Unless exempted under § 60.530 or procedures specified in § 60.534. must not discharge into the atmosphere subject to the standards specified in Wood heater means an enclosed, any gases that contain particulate matter paragraph (a) of this section, each wood burning-appliance capable of and in excess of a weighted average of 7.5 adjustable burn rate wood heater, pellet intended for residential space heating or g/hr (0.017 lb/hr) as specified in the stove or single burn rate wood heater domestic water heating. Unless applicable test method. Particulate manufactured or sold at retail for use in otherwise specified, these devices matter emissions must not exceed 15 g/ the United States on or after [5 YEARS include adjustable burn rate wood hr (0.033 lb/hr) during any test run at AFTER EFFECTIVE DATE OF FINAL heaters, single burn rate wood heaters a burn rate less than or equal to 1.5 kg/ RULE] must not discharge into the and pellet stoves. hr (3.3 lb/hr) that is required to be used atmosphere any gases that contain Wood pellet fuel means refined and in the weighted average as specified in particulate matter in excess of 1.3 g/hr densified wood shaped into small the applicable test method and (0.003 lb/hr) for any burn rate. pellets or briquettes that are uniform in particulate matter emissions must not Compliance for all sources must be size, shape, moisture, density and exceed 18 g/hr (0.040 lb/hr) during any determined by the test methods and energy content. test run at a burn rate greater than 1.5 procedures in § 60.534. kg/hr (3.3 lb/hr) that is required to be § 60.532 What standards and associated used in the weighted average as (d) [Reserved] requirements must I meet and by when? specified in the applicable test method. (e) Pellet Fuel Requirements. (a) 1990 Particulate Matter Standards. (3) As an alternative, an affected wood Operators of wood heaters that are Unless exempted under § 60.530, each heater subject to paragraph (a) of this certified to burn pellet fuels may only adjustable burn rate wood heater and section may elect to comply with the burn pellets that have been produced pellet stove with a current EPA requirements in paragraph (b) of this under a licensing agreement with the certification issued prior to [EFFECTIVE section. Pellet Fuels Institute or an equivalent DATE OF FINAL RULE], according to (b) 2015 Particulate Matter Standards. organization approved by the EPA. The the certification procedures in effect in Unless exempted under § 60.530 or pellet fuel must meet the following this subpart at the time of certification, subject to the standards specified in minimum requirements: must comply with the following paragraph (a) of this section, each (1) Density: consistent hardness and particulate matter emission limits as adjustable burn rate wood heater or energy content with a minimum density determined by the applicable test pellet stove manufactured on or after of 38 pounds/cubic foot;

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(2) Dimensions: maximum length of heaters within the model line. If one materials listed in paragraph (k)(3) of 1.5 inches and diameter between 0.230 entity, licenses a model line to another this section) will be composed of and 0.285 inches; entity, each entity’s model line must be material different from the material used (3) Inorganic fines: less than or equal certified. If an entity changes the name for the firebox or firebox component in to 1 percent; of the entity or the name of the model, the wood heater on which certification (4) Chlorides: less than or equal to 300 the manufacturer must apply for a new testing was performed and a description parts per million by weight; certification. of any such differences. (5) Ash content: no more than 2 (1) Prior to [EFFECTIVE DATE OF (4) Clear identification of any percent; and FINAL RULE], the manufacturer must confidential business information. (6) A quality assurance process submit to the EPA the information Submit such information under separate licensed by the Pellet Fuels Institute or required in paragraph (b) of this section cover to the EPA CBI Office; Attn: equivalent organization approved by and follow either the certification Residential Wood Heater Compliance EPA. process in paragraphs (b) through (e) of Program. Note that emissions data, (f) Prohibited Fuel Types. No person this section or the certifying entity including information necessary to is permitted to burn any of the following based application process specified in determine emission rates in the format materials in an affected wood heater: paragraph (f) of this section. of the standard, cannot be claimed as (1) Residential or commercial garbage; (2) On or after [EFFECTIVE DATE OF confidential business information. (2) Lawn clippings or yard waste; FINAL RULE], the manufacturer must (5) All documentation pertaining to a (3) Materials containing rubber, submit the information required in valid certification test, including the including tires; paragraph (b) of this section and follow complete test report and, for all test (4) Materials containing plastic; the certifying entity based application runs: raw data sheets, laboratory (5) Waste petroleum products, paints process specified in paragraph (f) of this technician notes, calculations, and test or paint thinners, or asphalt products; section. results. Documentation must include (b) Application for Certificate of (6) Materials containing asbestos; the items specified in the applicable test Compliance. Any manufacturer of an (7) Construction or demolition debris; methods. The test report must include a affected wood heater must apply to the (8) Paper products, cardboard, summary table that clearly presents the Administrator for a certificate of plywood, or particleboard. The individual and overall emission rates, compliance for each model line. The prohibition against burning these efficiencies, and heat output range. application must be submitted to: Wood materials does not prohibit the use of Submit the test report and all associated Heater NSPS Compliance Program at fire starters made from paper, required information according to the www.epa.gov/Wood_Heater_NSPS_ cardboard, saw dust, wax and similar procedures for electronic reporting substances for the purpose of starting a Compliance_Program. The application must be signed by a responsible specified in § 60.537(f). fire in an affected wood heater; (6) A copy of the warranties for the (9) Railroad ties or pressure treated representative of the manufacturer or an authorized representative and must model line, including a statement that wood; the warranties are void if the unit is (10) Manure or animal remains; or contain the following: used to burn materials for which the (11) Salt water driftwood or other (1) The model name and/or design unit is not certified by the EPA. previously salt water saturated number and responsible contact (7) A statement that the manufacturer materials. information for the manufacturer and all or certifying entity will conduct a (g) Owner’s Manual. A person must authorized representatives, including quality assurance program for the model not operate an affected residential wood name, affiliation, physical address, line that satisfies the requirements of heater in a manner inconsistent with the telephone number, and email address. paragraph (m) of this section. owner’s manual. The owner’s manual (2) Engineering drawings and (8) A statement describing how the must clearly specify that operation in a specifications of components that may tested unit was sealed by the laboratory manner inconsistent with the owner’s affect emissions (including after the completion of certification manual would violate the warranty. specifications for each component listed (h) Temperature Sensor Requirement. in paragraph (k) of this section). testing and that such unit will be stored An affected wood heater equipped with Manufacturers may use complete by the manufacturer in the sealed state a catalytic combustor must be equipped assembly or design drawings that have until 1 year after the certification with a temperature sensor that can been prepared for other purposes, but expires. monitor combustor gas stream must designate on the drawings the (9) Statements that the wood heaters temperatures within or immediately dimensions of each component listed in manufactured under this certificate will downstream [within 2.54 centimeters (1 paragraph (k) of this section. be— inch)] of the catalytic combustor Manufacturers must identify tolerances (i) Similar in all material respects as surface. of components of the tested unit listed defined in this subpart to the wood in paragraph (k)(2) of this section that heater submitted for certification § 60.533 What compliance and certification are different from those specified in that testing, and requirements must I meet and by when? paragraph, and show that such (ii) Labeled as prescribed in § 60.536. (a) Certification Requirement. Each tolerances may not reasonably be (iii) Accompanied by an owner’s affected wood heater must be certified anticipated to cause wood heaters in the manual that meets the requirements in to bein compliance with the applicable model line to exceed the applicable § 60.536. In addition, a copy of the emission standards and other emission limits. The drawings must owner’s manual must be submitted to requirements of this subpart. For each identify how the emission critical parts, the EPA and be available on the model line manufactured or sold by a such as air tubes and catalyst, can be manufacturer’s Web site. single entity, e.g., company or readily inspected and replaced. The (10) A statement that the manufacturer, compliance with drawings may be submitted either in manufacturer has entered into a contract applicable emission standards of hard copy or electronic format. with an accredited laboratory that § 60.532 may be determined based on (3) A statement whether the firebox or satisfies the requirements of paragraph testing of representative affected wood any firebox component (including the (e) of this section.

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(11) A statement that the accredited paragraph (m)(4) of this section to the (iii) The requirements of paragraphs certifying body is allowed to submit certifying entity. The quality control (b) of this section have been met. information on behalf of the plan must ensure that units within a (iv) A valid certificate of conformity manufacturer. model line accurately reflect emission- for the model line has been prepared (c)(1) Administrator Approval critical components of the model line and submitted. Process. The Administrator will design, and it must include design (3) The Administrator will deny electronically issue a certificate of drawings for the model line. certification if the Administrator compliance for a model line if the (iii) The manufacturer must apply to determines that the criteria in paragraph Administrator determines, based on all the certifying entity for a certification of (f)(2) of this section have not been information submitted by the applicant conformity with the applicable satisfied. Upon denying certification and any other relevant information requirements of this subpart for the under this paragraph, the Administrator available, that: model line. will give written notice to the (i) A valid certification test (A) After testing by an accredited test manufacturer setting forth the basis for demonstrates that the representative laboratory is complete, certification of the determination. affected wood heater complies with the conformity with the emission standards (g) Waiver from Submitting Test applicable emission standards in in § 60.532 must be performed by the Results. An applicant for certification § 60.532, manufacturer’s contracted certifying may apply for a potential waiver of the (ii) Any tolerances for components entity. requirement to submit the results of a listed in paragraph (k)(2) of this section (B) The certifying entity can certify certification test pursuant to paragraph that are different from those specified in conformity if the emission tests have (b)(3) of this section, if the wood heater those paragraphs may not reasonably be been conducted per the appropriate meets either of the following conditions: anticipated to cause wood heaters in the guidelines and the test report is (1) The wood heaters of the model model line to exceed the applicable complete and accurate and the line are similar in all material respects, emission limits; and instrumentation is properly calibrated as defined in this subpart, to another (iii) The requirements of paragraph (b) and the test report shows that the model line that has already been issued of this section have been met. representative affected wood heater a certificate of compliance. A (2) The Administrator will deny meets the applicable emission limits manufacturer that seeks a waiver of certification if the Administrator specified in § 60.532 and the quality certification testing must identify the determines that the criteria in paragraph control plan is adequate to ensure that model line that has been certified, and (c)(1) of this section have not been units within the model line will be must submit a copy of an agreement satisfied. Upon denying certification similar in all material respects to the with the owner of the design permitting under this paragraph, the Administrator wood heater submitted for certification the applicant to produce wood heaters will give written notice to the testing. of that design. (2) The manufacturer has previously manufacturer setting forth the basis for (iv) The manufacturer must then conducted a valid certification test to this determination. request that the certifying entity (d) Prior to [EFFECTIVE DATE OF demonstrate that the wood heaters of electronically submit, on behalf of the THE FINAL RULE], the Administrator the model line meet the applicable manufacturer, an application for EPA will issue the certificate for the most standard specified in § 60.532(a), and certification that includes the stringent particulate matter emission that test also demonstrates that the certification of conformity, quality standard that the unit meets under wood heaters of the model line meet the control plan, test report and supporting § 60.532(a) or (b), as applicable. applicable standard specified in documentation. (e) To receive EPA certification, a § 60.532(b). This option is only (v) The submission must include a manufacturer must enter into a contract potentially available a maximum of one statement signed by a responsible with the accredited laboratory that time per model line. performed the certification test, under official of the manufacturer that the (h) Certification Period. Unless which the laboratory will: manufacturer has complied with all revoked sooner by the Administrator, a (1) Conduct the compliance audit test requirements of this subpart and that certificate of compliance will be valid at no additional cost to the the manufacturer remains responsible for the following periods as applicable: manufacturer if the EPA selects that for compliance regardless of any error (1) For a model line certified as laboratory to conduct the test; or by the certifying entity. meeting the emission standards in (2) Pay the manufacturer the cost of a (2) The Administrator will § 60.532(a), a certificate of compliance compliance audit test (as determined by electronically issue to the manufacturer will be valid for 5 years from the date the EPA) if the EPA selects any other a certificate of compliance for a model of issuance. laboratory to conduct the test. line if it is determined, based on all of (2) For a model line certified as (f) Certifying Entity-Based Application the information submitted in the meeting emission standards in Process. application for certification and any § 60.532(b), a certificate of compliance (1) Any manufacturer of an affected other relevant information, that: will be valid for 5 years from the date wood heater must apply to the (i) A valid certification of conformity of issuance. Administrator for a certificate of has demonstrated that the representative (3) For a model line certified as compliance for each model line. The affected wood heater complies with the meeting emission standards in manufacturer must meet the following applicable emission standards in § 60.532(c), a certificate of compliance requirements: § 60.532; and will be valid for 5 years from the date (i) The manufacturer must contract (ii) Any tolerances or materials for of issuance. with a certifying entity for certification components listed in paragraph (k)(2) or (i) Renewal of Certification. services. (3) of this section that are different from (1) The certificate must be recertified (ii) The manufacturer must submit the those specified in those paragraphs may or renewed every 5 years or the materials specified in paragraph (b) of not be reasonably anticipated to cause manufacture may choose to no longer this section and a quality control plan wood heaters in the model line to manufacture or sell that model. If the that meets the requirements of exceed the applicable emission limits. manufacturer chooses to no longer

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manufacture or sell that model, then the (ii) Air introduction systems: Cross- (iv) Physical examination showing manufacturer must submit a statement sectional area of restrictive air inlets and that a significant percentage (as defined to EPA for that model. A manufacturer outlets, location and method of control; in the quality assurance plan, but no of an affected wood heater may apply to (iii) Baffles: Dimensions and larger than 1 percent) of production the Administrator for potential renewal locations; units inspected is not similar in all of their certificate by submitting the (iv) Refractory/insulation: Dimensions material respects to the representative material specified in § 60.533(b) and and location; affected wood heater submitted for following the procedures specified in (v) Catalyst: Dimensions and location; testing; or § 60.533(f) or by affirming in writing (vi) Catalyst bypass mechanism and (v) Failure of the manufacturer to that the wood heater has been subject to catalyst bypass gap tolerances (when conduct a quality assurance program in no changes that would impact emissions bypass mechanism is in closed conformity with paragraph (m) of this and requesting a potential waiver from position): Dimensions, cross-sectional section. certification testing. area, and location; (2) Revocation of certification under (vii) Flue gas exit: Dimensions and (2) If the Administrator grants a this paragraph will not take effect until location; the manufacturer concerned has been renewal of certification, the (viii) Door and catalyst bypass Administrator will give written notice to given written notice by the gaskets: Dimensions and fit; Administrator setting forth the basis for the manufacturer setting forth the basis (ix) Outer shielding and coverings: for the determination and issue a the proposed determination and an Dimensions and location; opportunity to request a review under certification renewal. (x) Fuel feed system: For wood § 60.539. (3) If the Administrator denies the heaters that are designed primarily to (m) Quality Assurance Program. request for a renewal of certification, the burn wood pellets and other wood (1) On or after [EFFECTIVE DATE OF Administrator will give written notice to heaters equipped with a fuel feed FINAL RULE], for each certified model the manufacturer setting forth the basis system, the fuel feed rate, auger motor line, the manufacturer must conduct a for the determination. design and power rating, and the angle quality assurance program that satisfies (j) [Reserved] of the auger to the firebox; and the requirements of this section The (xi) Forced air combustion system: quality assurance program requirements (k) Recertification. For wood heaters so equipped, the of this section supersede the quality (1) The manufacturer must recertify a location and horsepower of blower assurance plan requirements specified model line whenever any change is motors and the fan blade size. made in the design submitted pursuant (3) Any change in the materials used in § 60.533(o) of the 1988 rule. By [60 to paragraph (b)(2) of this section that is for the following components is DAYS AFTER EFFECTIVE DATE OF presumed to affect the particulate matter presumed to affect particulate matter FINAL RULE], for model lines that had emission rate for that model line. The emissions and efficiency: a valid EPA certification on [60 DAYS manufacturer of an affected wood heater (i) Refractory/insulation; or AFTER EFFECTIVE DATE OF FINAL must apply to the Administrator for (ii) Door and catalyst bypass gaskets. RULE], manufacturers must submit the potential recertification by submitting (4) A change in the make, model, or quality assurance plan to the EPA the material specified in § 60.533(b) and composition of a catalyst is presumed to Administrator for review and approval. following the procedures specified in affect particulate matter and carbon (i) The manufacturer must prepare § 60.533(f) or by affirming in writing monoxide emissions and efficiency, and operate according to a quality that the wood heater has been subject to unless the change has been approved in assurance plan for each certified model no changes that would impact emissions advance by the Administrator, based on line that has specific inspection and and requesting a potential waiver from test data in the same model stove that testing requirements for ensuring that certification testing. The Administrator demonstrate that the replacement units within a model line accurately may potentially waive this requirement catalyst is equivalent to or better than reflect emission-critical components of upon written request by the the original catalyst in terms of the model line design and meet the manufacturer, if it is determined that particulate matter emission reduction. emissions standards in § 60.532. the change may not reasonably be (l) Criteria for Revocation of (ii) The quality assurance plan must anticipated to cause wood heaters in the Certification. be approved within 30 days by the model line to exceed the applicable (1) The Administrator may revoke certifying entity as part of the emission limits. The granting of such a certification if it is determined that the certification of conformity process waiver does not relieve the wood heaters being manufactured or specified in paragraph (f) of this section. (iii) Within 30 days after approval by manufacturer of any compliance sold in that model line do not comply the certifying entity, the quality control obligations under this subpart. with the requirements of this subpart. Such a determination will be based on plan must also be submitted to EPA for (2) Any change in the design all available evidence, including but not review and approval. tolerances of any of the following limited to: (iv) The certifying entity must components (where such components (i) Test data from a retesting of the conduct quarterly unannounced audits are applicable) is presumed to affect original unit on which the certification under ISO–IEC Guide 17065 and ISO– particulate matter and carbon monoxide test was conducted or a similar unit; EC Standard 17020 to ensure that the emissions and efficiency if that change (ii) A finding that the certification test manufacturer’s quality control plan is ± ±1 exceeds 0.64 cm ( ⁄4 inch) for any was not valid. (iii) A finding that the being implemented. ± linear dimension and 5 percent for any labeling of the wood heater model line (v) The certifying entity must prepare cross-sectional area relating to air or the owner’s manual or marketing a report for each audit under ISO–IEC introduction systems and catalyst information does not comply with the Guide 17065 and ISO–EC Standard bypass gaps unless other dimensions requirements of § 60.536; 17020 that fully documents the results and cross-sectional areas are previously (iii) Failure by the manufacturer to of the audit, and the manufacturer must approved by the Administrator under comply with reporting and include in their contract with the paragraph (c)(1)(ii) of this section: recordkeeping requirements under certifying entity the authorization and (i) Firebox: Dimensions; § 60.537; requirement to submit all such reports

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to the EPA within 30 days. In the audit (i) If emissions from a wood heater performed the emissions test for the report, the certifying entity must tested under paragraph (n)(2) of this Administrator. identify deviations from the section exceed the certification emission (v) Whether or not the manufacturer manufacturer’s quality control plan and values limit by more than 50 percent, proceeds under paragraph (n)(4)(iv) of specify the corrective actions that need the Administrator will notify the this section, the manufacturer may to be taken to address each identified manufacturer that certification for that submit any relevant information to the deficiency. model line is suspended effective 72 Administrator, including any other test (vi) The manufacturer must report hours from the receipt of the notice, data generated pursuant to this subpart. within 30 days to the certifying entity unless the suspension notice is The manufacturer must pay the expense and to the EPA its responses to any withdrawn by the Administrator. The of any additional testing. deficiencies identified in an audit suspension will remain in effect until (vi) The Administrator will withdraw report. withdrawn by the Administrator, or 30 any notice issued under paragraph (n) EPA Compliance Audit Testing. days from its effective date (if a (n)(4)(ii) of this section if tests under (1)(i) The Administrator may select by revocation notice under paragraph paragraph (n)(4)(iv) of this section show written notice wood heaters for (n)(5)(ii) of this section is not issued either— compliance audit testing to determine within that period), or the date of final (A) That all wood heaters tested for compliance with the emission standards agency action on revocation, whichever the manufacturer met the applicable in § 60.532. occurs earlier. emission limits; or (ii) The written notification shall be (ii)(A) If emissions from a wood (B) That the second and third wood forwarded to the manufacturer by the heater tested under paragraph (n)(2) of heaters selected met the applicable Administrator and shall include the this section exceed the applicable emission limits and the average of all name and address of the laboratory emission limit, the Administrator will three (including the original audit test) selected to perform the audit test and notify the manufacturer that was below the applicable emission the model name and serial number of certification is revoked for that model limits. the wood heater(s) selected to undergo line. (C) The Administrator will revise the audit testing. certification values based on the test (2)(i) The Administrator may test, or (B) A suspension under paragraph (n)(4)(i) or a revocation notice under data and other relevant information and direct the manufacturer to have tested, the manufacturer must revise the labels the wood heater(s) selected under paragraph (n)(4)(ii)(A) of this section will become final and effective 60 days and marketing information accordingly. paragraph (n)(1)(i) of this section in a (vii) The Administrator may withdraw laboratory accredited under § 60.535 after receipt by the manufacturer, unless it is withdrawn, a supplemental review any proposed revocation, if the that is selected pursuant to paragraph Administrator finds that an audit test (n)(3) of this section. is requested under § 60.539, or the deadline for requesting a supplemental failure has been rebutted by information (ii) The expense of the compliance submitted by the manufacturer under audit test is the responsibility of the review is extended. (C) The Administrator may extend the paragraph (n)(4)(iv) of this section and/ wood heater manufacturer. A or (n)(4)(v) of this section or by any manufacturer may require the laboratory deadline for requesting a supplemental review for up to 60 days for good cause. other relevant information available to that performed the certification test to the Administrator. bear the expense of an audit test by (D) A manufacturer may extend the means of the contract required under deadline for requesting a supplemental § 60.534 What test methods and paragraph (e) of this section. The review for up to 6 months, by agreeing procedures must I use to determine manufacturer will bear the cost of audit to a voluntary suspension of compliance with the standards and testing if the laboratory with which the certification. requirements for certification? manufacturer had a contract has ceased (iii) Any notification under paragraph Test methods and procedures business or is otherwise legally unable (n)(4)(i) or (n)(4)(ii) of this section will specified in this section or in to honor the contract. The manufacturer include a copy of a preliminary test appendices of this part, except as will also bear the cost of audit testing if report from the accredited test provided under § 60.8(b), must be used the manufacturer has not entered into laboratory or federal test laboratory. The to determine compliance with the contract with an accredited test test laboratory must provide a standards and requirements for laboratory to perform audit testing. preliminary test report to the certification under § § 60.532 and 60.533 (iii) The test must be conducted using Administrator within 10 days of the as follows: the same test method and procedure completion of testing, if a wood heater (a)(1) Method 28 of appendix A–8 of used to obtain certification or a new test exceeds the applicable emission limit in this part must be used to establish the method approved by the EPA § 60.532. The test laboratory must certification test conditions and the Administrator. If the certification test provide the Administrator and the particulate matter emission values for consisted of more than one particulate manufacturer, within 30 days of the affected wood heaters subject to the matter sampling test method, the completion of testing, all documentation 1990 particulate matter standards Administrator may direct the test pertaining to the test, including the specified in § 60.532(a). laboratory as to which of these methods complete test report and raw data (2) For affected wood heaters subject to use for the purpose of audit testing. sheets, laboratory technician notes, and to the 2015 particulate matter standards The Administrator will notify the test results for all test runs. specified in § 60.532(b), you must manufacturer at least 1 week prior to (iv) Upon receiving notification of a conduct testing according to paragraphs any test under this paragraph, and allow test failure under paragraph (n)(4)(ii) of § 60.534(a)(2)(i) and (ii) of this section the manufacturer and/or his authorized this section, the manufacturer may and submit the full test reports. You representatives to observe the test. request up to four additional wood have the option of submitting the test (3) The Administrator may select any heaters from the same model line be results of either (a)(2)(i) or (ii) of this accredited test laboratory or federal selected under paragraph (n)(1) of this section to the Administrator as specified laboratory for audit testing. section for testing at the manufacturer’s under § 60.537 for certification (4) Revocation of Certification. expense, at the test laboratory that compliance.

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(i) Conduct testing with crib wood limited to written communications Administrator will give written notice to using EPA Method 28R of appendix A– transmitted prior to the first pretest burn the laboratory setting forth the basis for 8 of this part to establish the of the certification series. Written the determination. certification test conditions and the communications between the (b)(1) The Administrator may revoke particulate matter emission values. manufacturer and laboratory personnel the EPA laboratory accreditation if it is (ii) Conduct testing with cord wood may be exchanged during the determined that the laboratory: using EPA Method 28R of appendix A– certification test only if deviations from (i) Is no longer is accredited by the 8 of this part to establish the the test procedures are observed that nationally recognized ISO certifying certification test conditions and the constitute improper conduct of the test. entity; particulate matter emission values. All communications must be included (ii) Does not follow required (3) For affected wood heaters subject in the test documentation required to be procedures or practices; to the 2020 particulate matter standards submitted pursuant to § 60.533(b)(3) and (iii) Has falsified data or otherwise specified in § 60.532(c), you must must be consistent with instructions misrepresented emission data; conduct testing with cord wood using provided in the owner’s manual (iv) Failed to participate in a EPA Method 28R of appendix A–8 of required under § 60.536(f), except to the proficiency testing program, in this part to establish the certification extent that they address details of the accordance with its commitment under test conditions, except that you should certification tests that would not be paragraph (a)(2)(ii) of this section; or first test Burn Rate Categories 1 and 4 relevant to owners or regulators. (v) Failed to seal the wood heater in and then test 2 more times for accordance with paragraph (d) of this whichever burn rate category is worse § 60.535 What procedures must I use for section. and then report the results separately laboratory accreditation or certifying body (2) Revocation of accreditation under per burn rate category. accreditation? this paragraph will not take effect until (b) For affected wood heaters subject (a)(1) A laboratory must apply to the the laboratory concerned has been given to the 1990 particulate matter standards Administrator for accreditation as an written notice by the Administrator specified in § 60.532(a), emission EPA accredited test laboratory by setting forth the basis for the proposed concentrations must be measured with submitting documentation that the determination and an opportunity for a Method 5G of appendix A–3 of this part, laboratory is accredited by a nationally Petition for Supplemental Review under i.e., using a dilution tunnel sampling recognized accrediting entity under § 60.539. However, if revocation is location. Method 5H is no longer ISO–IEC Standard 17025 to perform ultimately upheld, all tests conducted allowed for certification testing. testing using the test methods specified by the laboratory after written notice (c) For affected wood heaters subject under § 60.534. was given will, at the discretion of the to the 2015 and 2020 particulate matter (2) As part of the application, the test Administrator, be declared invalid. standards specified in § 60.532(b) and laboratory must: (c)(1) With the exception of (c), emission concentrations must be (i) Agree to enter into a contract as laboratories meeting the provisions of measured with ASTM E2515–10. described in § 60.533(e) with each wood paragraph (c)(2) of this section, and (d) Canadian Standards heater manufacturer for whom a unless revoked sooner, a certificate of Administration Method B415.1–10, certification test has been performed; accreditation as an accredited test section 13.7, must be used to measure (ii) Agree to participate biennially in laboratory granted by the Administrator the efficiency and carbon monoxide a proficiency testing program conducted is valid for 5 years from the date of output of the tested appliance. by the Administrator; issuance. (e) [Reserved] (iii) Agree to allow the Administrator (2) Laboratories accredited by the EPA (f) The manufacturer of an affected and delegated states and certifying by February 3, 2014 under the wood heater must notify the bodies access to observe certification provisions of § 60.535 in effect prior to Administrator of the date that testing; that date may continue to be accredited certification testing is scheduled to (iv) Agree to comply with reporting until [1 YEAR AFTER EFFECTIVE begin by email to Wood Heater NSPS and recordkeeping requirements that DATE OF FINAL RULE], at which time Compliance Program at www.epa.gov/ affect testing laboratories; and the accreditation ends unless the Wood_Heater_NSPS_Compliance_ (v) Agree to perform a compliance laboratory has obtained accreditation Program. This notice must be received audit test (as determined by the under § 60.535 as in effect beginning on by the EPA at least 30 days before the Administrator) at the cost normally [EFFECTIVE DATE OF FINAL RULE]. start of testing. The notification of charged to manufacturers if it is selected (d) A laboratory accredited by the testing must include the manufacturer’s to conduct the compliance audit test of Administrator must seal any wood name and physical and email addresses, a model line originally tested for heater on which it performed the accredited test laboratory’s name certification at another laboratory. certification tests, immediately upon and physical and email addresses, (vi) Have no conflict of interest and completion or suspension of certifying entity name, the model name receive no financial benefit from the certification testing, by using a and number (or, if unavailable, some outcome of certification testing laboratory-specific seal. For any tests other way to distinguish between conducted pursuant to § 60.533. that are suspended, the laboratory must models), and the dates of testing. (vii) Agree to not perform initial email the EPA immediately with the (g) The accredited test laboratory must certification tests on any models date suspended, the reason(s) why, and allow the manufacturer, the EPA and manufactured by a manufacturer for the projected date for re-starting. The delegated states to observe certification which the laboratory has conducted laboratory must submit the operation testing. However, manufacturers must research and development tests within and test data obtained, even if the test not involve themselves in the conduct the last 5 years. is not completed. of the test after the pretest burn has (3) If the EPA approves the (e)(1) A Certifying Entity may apply to begun. Communications between the accreditation, the Administrator will the Administrator for approval to be an manufacturer and laboratory or provide the test laboratory with a EPA-approved certifying entity by certifying entity personnel regarding certificate of accreditation. If the EPA submitting credentials demonstrating operation of the wood heater must be denies the accreditation, the that they have been accredited by a

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nationally recognized accrediting entity certifying entity will, at the discretion of U.S. ENVIRONMENTAL PROTECTION to perform certifications and inspections the Administrator, be declared invalid. AGENCY Certified to comply with under ISO–17025, ISO–IEC Standard 1990 particulate emission standards. 17065 and ISO–IEC Standard 10720. § 60.536 What requirements must I meet Not approved for sale or operation for permanent labels and owner’s manuals? (2) As part of the application, the after [6 MONTHS AFTER EFFECTIVE certifying entity must: (a) Permanent Label Requirements. (1) DATE OF FINAL RULE] or (i) Agree to enter into a contract as Each affected wood heater U.S. ENVIRONMENTAL PROTECTION described in § 60.533(e) with each wood manufactured on or after the date the AGENCY Certified to comply with heater manufacturer for whom a applicable standards come into effect as 2015 particulate emission standards. certification test has been performed specified in § 60.532, must have a Not approved for sale or operation and a test report has been received and permanent label affixed to it that meets after [5 YEARS AFTER EFFECTIVE reviewed; the requirements of this section. DATE OF FINAL RULE] or (ii) Agree to periodically conduct (2) Except for wood heaters subject to U.S. ENVIRONMENTAL PROTECTION audits as described in § 60.534 and § 60.530(b)(1) through (b)(5), the AGENCY Certified to comply with manufacturer’s QA/QC Plan; permanent label must contain the 2020 particulate emission standards. (iii) Agree to participate biennially in following information: (c) If the single burn rate wood heater (i) Month and year of manufacture of a proficiency testing program conducted belongs to a model line certified under the individual unit; by the Administrator; § 60.533, and it has been found to meet (ii) Model name or number; and (iv) Agree to comply with reporting the applicable emission limits or (iii) Serial number. and recordkeeping requirements that tolerances through quality assurance (3) The permanent label must: testing, the following statements must affect accredited wood heater testing (i) Be affixed in a readily visible or laboratories and certifying entities; appear on the permanent label: accessible location in such a manner U.S. ENVIRONMENTAL PROTECTION (v) Have no conflict of interest and that it can be easily viewed before and receive no financial benefit from the AGENCY Certified to comply with after the appliance is installed; 2015 particulate emission standards. outcome of certification testing (ii) Be at least 8.9 cm long and 5.1 cm conducted pursuant to § 60.533; 1 Not approved for sale or operation wide (3 ⁄2 inches long and 2 inches after [5 YEARS AFTER EFFECTIVE (vi) Agree to make available to the wide); EPA supporting documentation for each DATE OF FINAL RULE] or (iii) Be made of a material expected to U.S. ENVIRONMENTAL PROTECTION wood heater certification and audit; and last the lifetime of the wood heater; (vii) Agree to not perform initial AGENCY Certified to comply with (iv) Present required information in a 2020 particulate emission standards. certification reviews on any models manner so that it is likely to remain (d)(1) If an affected wood heater is manufactured by a manufacturer for legible for the lifetime of the wood which the certifying entity has manufactured in the United States for heater; and export as provided in § 60.530(b)(1), the conducted research and development (v) Be affixed in such a manner that following statement must appear on the within the last 5 years. it cannot be removed from the appliance permanent label: (3) If approved, the Administrator will without damage to the label. provide the certifying entity with a (4) The permanent label may be U.S. ENVIRONMENTAL PROTECTION certificate of accreditation. The combined with any other label, as long AGENCY Export stove. May not be accreditation will expire 5 years after as the required information is displayed, sold or operated within the United being issued unless renewed by the the integrity of the permanent label is States. (2) If an affected wood heater is certifying entity. If the EPA denies the not compromised, and the permanent manufactured for use for research and accreditation, the Administrator will label still meets the requirements in development purposes as provided in give written notice to the certifying § 60.536(a)(3). § 60.530(b)(2), the following statement entity for the basis for the (5) Any label statement under must appear on the permanent label: determination. paragraph (b) or (c) of this section (f)(1) The Administrator will revoke constitutes a representation by the U.S. ENVIRONMENTAL PROTECTION the EPA certifying entity accreditation if manufacturer as to any wood heater that AGENCY Not certified. Research it is determined that the certifying bears it: Stove. Not approved for sale or for entity; (i) That certification of compliance operation other than research. (i) Is no longer accredited by the was in effect at the time the wood heater (3) If an affected wood heater is nationally recognized ISO certifying left the possession of the manufacturer; exclusively a non wood-burning heater entity (ii) That the manufacturer was, at the as provided § 60.530(b)(3) the following (ii) Does not follow required time the label was affixed, conducting a statement must appear on the procedures or practices; quality assurance program in conformity permanent label: (iii) Has falsified certification data or with § 60.533(o); and U.S. ENVIRONMENTAL PROTECTION otherwise misrepresented emission (iii) That any wood heater AGENCY This heater is not certified data; or individually tested for emissions by the for wood burning. Use of any wood (iv) Failed to participate in the EPA manufacturer under § 60.533(o)(2) or fuel is a violation of federal law. proficiency testing program. (o)(4) met the applicable emissions (4) If an affected wood heater is a (2) Revocation of accreditation under limits. cookstove that meets the applicable this paragraph will not take effect until (b) If the adjustable burn rate wood definition in § 60.531, the following the certifying entity concerned is given heater or pellet stove belongs to a model statement must appear on the written notice by the Administrator line certified under § 60.533, and it has permanent label: setting forth the basis for the proposed been found to meet the applicable U.S. ENVIRONMENTAL PROTECTION determination and an opportunity for a emission limits or tolerances through AGENCY This unit is not a certified Petition for Supplemental Review under quality assurance testing, one of the residential wood heater. The primary § 60.539. However, if revocation is following statements, as appropriate, use for this unit is for cooking or upheld, all tests reviewed by the must appear on the permanent label: baking.

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(5) If an affected wood heater is a ‘‘This wood heater contains a catalytic certifying entity must submit each camp stove that meets the applicable combustor, which needs periodic certification test, QA/QC inspection definition in § 60.531, the following inspection and replacement for proper report and ISO IEC accreditation statement must appear on the operation. It is against federal law to credentials to the Administrator. permanent label: operate this wood heater in a manner (c) Each manufacturer must retain U.S. ENVIRONMENTAL PROTECTION inconsistent with operating instructions each wood heater upon which AGENCY This unit is not a certified in this manual, or if the catalytic certification tests were performed based residential wood heater. For portable element is deactivated or removed.’’ upon which certification was granted and temporary use only. (viii) For noncatalytic models, the under § 60.533(c) or (f) at the manufacturer’s facility for as long as the (e) The permanent label for all following statement: ‘‘This wood heater needs periodic model line in question is manufactured. certified wood heaters must also contain inspection and repair for proper Each heater or furnace must remain the following statement: operation. It is against federal law to sealed and unaltered. Any such wood ‘‘This wood heater needs periodic operate this wood heater in a manner heater must be made available to the inspection and repair for proper inconsistent with operating instructions Administrator upon request for operation. Consult owner’s manual for in this manual.’’ inspection and testing. further information. It is against the law (4) Any manufacturer using the EPA- (d) Each manufacturer of an affected to operate this wood heater in a manner recommended language contained in wood heater certified under § 60.533(c) inconsistent with operating instructions appendix I of this part to satisfy any or (f) must submit a report to the in the owner’s manual.’’ requirement of this paragraph (f) will be Administrator every 2 years following (f) Owner’s Manual. considered to be in compliance with issuance of a certificate of compliance (1) Each affected wood heater offered that requirement, provided that the for each model line. This report must for sale by a commercial owner must be particular language is printed in full, include the sales for each model by state accompanied by an owner’s manual that with only such changes as are necessary and certify that no changes in the design must contain the information listed in to ensure accuracy for the particular or manufacture of this model line have paragraphs (f)(2) and (f)(3) of this wood heater model line. been made that require recertification section. Such information must be (5) Wood heaters that are affected by under § 60.533(k). adequate to enable consumers to this subpart, but that have been owned (e)(1) Unless otherwise specified, all achieve optimal emissions performance. and operated by a noncommercial records required under this section must Such information must be consistent owner, are not subject to paragraphs (f) be maintained by the manufacturer, with the operating instructions provided of this section when offered for resale. commercial owner of the affected wood by the manufacturer to the accredited heater, accredited test laboratory or test laboratory for operating the wood § 60.537 What records must I keep and certifying entity for a period of no less heater during certification testing, what reports must I submit? than 5 years. except for details of the certification test (a)(1) Each manufacturer who holds a (2) Unless otherwise specified, all that would not be relevant to the certificate of compliance under reports to the Administrator required ultimate purchaser. The commercial § 60.533(c) or (f) for a model line must under this subpart must be made to: owner must also make current and maintain records containing the Wood Heater NSPS Compliance historical owner’s manuals available on information required by paragraph (a) of Program at www.epa.gov/Wood_Heater_ the company Web site and upon request this section with respect to that model NSPS_Compliance_Program. to the EPA. line. (f) Within 60 days after the date of (2) Installation information: (2) All documentation pertaining to completing each performance test, each Requirements for achieving proper draft. the certification test used to obtain manufacturer or accredited test (3) Operation and maintenance certification, including the full test laboratory or certifying entity must information: report and raw data sheets, laboratory submit performance test data (i) Fuel loading procedures, technician notes, calculations, and the electronically to the EPA’s Central Data recommendations on fuel selection, and test results for all test runs. Exchange (CDX) by using the Electronic warnings on what fuels not to use, such (3) Results of the quality assurance Reporting Tool (ERT) (http:// as treated wood, colored paper, program inspections required by www.epa.gov/ttn/chief/ert/index.html). cardboard, solvents, trash and garbage. § 60.533(m). Only data collected using test methods (ii) Fire starting procedures (4) For emissions tests conducted compatible with ERT are subject to this (iii) Proper use of air controls pursuant to the quality assurance requirement to be submitted (iv) Ash removal procedures program required by § 60.533(o), all test electronically to the EPA’s CDX. (v) Instructions for replacement of reports, data sheets, laboratory Manufacturers may submit compliance gaskets, air tubes and other parts that technician notes, calculations, and test reports to the EPA via regular mail at are critical to the emissions performance results for all test runs, the remedial the address listed below if the test of the unit and other maintenance and actions taken, if any, and any follow-up methods they use are not compatible repair instructions actions such as additional testing. with ERT or if ERT is not available to (vi) For catalytic models, information (b) Each accredited test laboratory and accept reports at the time the final rule on the following pertaining to the certifying entity must maintain records is published. Owners or operators who catalytic combustor: Procedures for consisting of all documentation claim that some of the information being achieving and maintaining catalyst pertaining to each certification test, QA/ submitted for performance tests is activity, maintenance procedures, QC inspection and audit test, including confidential business information (CBI) procedures for determining the full test report and raw data sheets, must submit a completed ERT file, deterioration or failure, procedures for technician notes, calculations, and the including information claimed to be CBI replacement, and information on how to test results for all test runs. Each on a compact disk or other commonly exercise warranty rights accredited test laboratory must submit used electronic storage media (vii) For catalytic models, the initial and biennial proficiency test (including, but not limited to, flash following statement: results to the Administrator. Each drives), to the EPA, and the same ERT

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file, with the CBI omitted, to the EPA information or other fraudulent acts, or supporting documentation setting forth via CDX as described earlier in this based on a finding under with particularity the petitioner’s paragraph. The compact disk must be § 60.533(l)(1)(ii) that the certification objection to the Administrator’s clearly marked as CBI and mailed to test was not valid, the Administrator determination or proposed U.S. EPA/OAQPS/CORE CBI Office, may give notice of that revocation and determination. Attention: WebFIRE Administrator, MD the grounds for it to all commercial (c) Upon receipt of a Petition for C404–02, 4930 Old Page Rd., Durham, owners. Review under paragraph (a) of this NC 27703. Emission data, including all (2) On and after the date of receipt of section, the Administrator shall provide information necessary to determine the notice given under paragraph (d)(1) a written response within 45 days. compliance, except sensitive of this section, no commercial owner is engineering drawings and sensitive permitted to sell any wood heater § 60.539a Who implements and enforces detailed material specifications, may not covered by the revoked certificate (other this subpart? be claimed as CBI. than to the manufacturer) unless the (a) In delegating implementation and model line has been recertified in § 60.538 What activities are prohibited enforcement authority to a state under accordance with this subpart. section 111(c) of the Act, the authorities under this subpart? (e) No person is permitted to install or (a) No person is permitted to operate contained in paragraph (b) of this operate an affected wood heater except section must be retained by the an affected wood heater that does not in a manner consistent with the have affixed to it a permanent label Administrator and not transferred to a instructions on its permanent label and state. pursuant to § 60.536 (b), (c), or (d)(2) in the owner’s manual pursuant to through (d)(5). § 60.536(f). (b) Authorities that must not be (b) No commercial owner is permitted (f) No person is permitted to operate delegated to states: to advertise for sale, offer for sale, or sell an affected wood heater that was (1) Section 60.531, Definitions; an affected wood heater labeled under originally equipped with a catalytic § 60.536(d)(1) except for export. (2) Section 60.533, Compliance and combustor if the catalytic element is certification; (c)(1) No commercial owner is deactivated or removed. permitted to advertise for sale, offer for (g) No person is permitted to operate (3) Section 60.534, Test methods and sale or sell an affected wood heater an affected wood heater that has been procedures; and permanently labeled under § 60.536 (b) physically altered to exceed the (4) Section 60.535, Laboratory or (c) unless: tolerance limits of its certificate of accreditation. (i) The affected wood heater has been compliance. certified to comply with 2020 (h) No person is permitted to alter, § 60.539b What parts of the General particulate emission standards. This deface, or remove any permanent label Provisions do not apply to me? prohibition does not apply to wood required to be affixed pursuant to The following provisions of subpart A heaters affected by this subpart that § 60.536. of part 60 do not apply to this subpart: have been previously owned and (i) No certifying entity is permitted to (a) Section 60.7; operated by a noncommercial owner; certify its own certification test report. and (b) Section 60.8(a), (c), (d), (e), (f) and (ii) The commercial owner provides § 60.539 What Petition for Review (g); and procedures apply to me? any purchaser or transferee with an (c) Section 60.15(d). owner’s manual that meets the (a)(1) In any case where the requirements of § 60.536(f), a copy of Administrator— ■ 4. Add subpart QQQQ to read as the warranty and a moisture meter. (i) Denies an application under follows: (2) No commercial owner is permitted § 60.530(c) or § 60.533(f); Subpart QQQQ—Standards of Performance to advertise for sale, offer for sale, or sell (ii) Issues a notice of revocation of for New Residential Hydronic Heaters and an affected wood heater permanently certification under § 60.533(l); Forced-Air Furnaces labeled under § 60.536(d)(3), unless the (iii) Denies an application for Sec. affected wood heater has been certified laboratory accreditation under 60.5472 Am I subject to this subpart? to comply with 2020 particulate § 60.535(a); or 60.5473 What definitions must I know? emission. This prohibition does not (iv) Issues a notice of revocation of 60.5474 What standards and requirements apply to wood heaters affected by this laboratory accreditation under must I meet and by when? subpart that have been previously § 60.535(b), the manufacturer or 60.5475 What compliance and certification owned and operated by a laboratory affected may submit to the requirements must I meet and by when? 60.5476 What test methods and procedures noncommercial owner. EPA, a Petition for Review request under this section within 30 days must I use to determine compliance with (3) A commercial owner other than a the standards and requirements for manufacturer complies with the following receipt of the required certification? requirements of paragraph (c)(1) of this notification of the action in question. 60.5477 What procedures must I use for section if the commercial owner: (2) In any case where the laboratory accreditation? (i) Receives the required Administrator issues a notice of 60.5478 What requirements must I meet for documentation from the manufacturer revocation under § 60.533(p), the permanent labels and owner’s manuals? or a previous commercial owner; and manufacturer may submit to the EPA a 60.5479 What records must I keep and what (ii) Provides that documentation Petition for Review request under this reports must I submit? unaltered to any person to whom the section with the time limits set out in 60.5480 What activities are prohibited wood heater that it covers is sold or § 60.533(p)(4). under this subpart? 60.5481 What Petition for Review transferred. (b) Any Petition for Review request procedures apply to me? (d)(1) In any case in which the must be in writing, must be signed by 60.5482 Who implements and enforces this Administrator revokes a certificate of an authorized representative of the subpart? compliance either for the knowing petitioning manufacturer or laboratory, 60.5483 What parts of the General submission of false or inaccurate and must include a statement and Provisions do not apply to me?

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Subpart QQQQ—Standards of the EPA for conducting certification individual residential hydronic heater Performance for New Residential tests under this subpart. or forced-air furnace that is similar in all Hydronic Heaters and Forced-Air At retail means the sale by a material respects as defined in this Furnaces commercial owner of a residential section to other residential hydronic hydronic heater or forced-air furnace to heaters or forced-air furnaces within the § 60.5472 Am I subject to this subpart? the ultimate purchaser. model line it represents. (a) You are subject to this subpart if Central heater means a fuel-burning Residential forced-air furnace means you operate, manufacture, sell, offer for device designed to burn wood or wood a fuel burning device designed to burn sale, import for sale, distribute, offer to pellet fuel that warms spaces other than wood or wood pellet fuel that warms distribute, introduce, or deliver for the space where the device is located, spaces other than the space where the introduction, into commerce in the by the distribution of air heated by the furnace is located, by the distribution of United States, residential hydronic furnace through ducts or liquid heated air heated by the furnace through ducts. heater or forced-air furnace in the device and distributed typically Residential hydronic heater means a manufactured on or after [EFFECTIVE through pipes. Unless otherwise fuel burning device designed to burn DATE OF FINAL RULE]. specified, these devices include wood or wood pellet fuel for the (b) Each residential hydronic heater or residential forced-air furnaces and purpose of heating building space and/ forced-air furnace must comply with the residential hydronic heaters. or water through the distribution, provisions of this subpart unless Certifying entity means an typically through pipes, of a fluid exempted under paragraphs (b)(1) independent third party that is heated in the device, typically water or through (b)(3) of this section. accredited by a nationally recognized a water and antifreeze mixture. (1) Affected residential hydronic accrediting entity under ISO–IEC Sale means the transfer of ownership heaters or forced-air furnaces Standard 17020 to perform or control, except that a transfer of manufactured in the United States for certifications, inspections and audits control of an affected residential export are exempt from the applicable under ISO–IEC Guide 17065 and hydronic heater or forced-air furnace for emission limits of § 60.5474 and the approved by the EPA for conducting research and development purposes requirements of § 60.5475. certifications, inspections and audits within the scope of § 60.5472(b)(2) is (2) Affected residential hydronic under this subpart. not a sale. heaters or forced-air furnaces used for Coal-only hydronic heater or forced- Seasoned wood means wood with a research and development purposes that air furnace means an enclosed, coal- moisture content of 20 percent or less. are never offered for sale or sold and burning appliance capable of space Similar in all material respects means that are not used to provide heat are heating or domestic water heating that that the construction materials, exhaust exempt from the applicable emission has all of the following characteristics: and inlet air system, and other design limits of § 60.5474 and the requirements (1) Installation instructions that state features are within the allowed of § 60.5475. No more than 12 affected that the use of wood in the appliance, tolerances for components identified in residential hydronic heaters or forced- except for coal ignition purposes, is § 60.533(k). air furnaces manufactured per model prohibited by law; and Valid certification test means a test line may be exempted for this purpose. (2) The model is listed by a nationally that meets the following criteria: (3) Appliances that do not burn wood recognized safety-testing laboratory for (1) The Administrator was notified or wood pellets (such as coal-only coal use only, except for coal ignition about the test in accordance with hydronic heaters or forced-air furnaces purposes. § 60.5476(f); that meet the definition in § 60.5473 or Commercial owner means any person (2) The test was conducted by an corn-only hydronic heaters or forced-air who owns or controls a residential accredited test laboratory as defined in furnaces) are exempt from the hydronic heater or forced-air furnace in this section; applicable emission limits of § 60.5474 the course of the business of the (3) The test was conducted on a and the requirements of § 60.5475. manufacture, importation, distribution, residential hydronic heater or forced-air (c) The following are not affected or sale of the unit. furnace similar in all material respects residential hydronic heaters or forced- Manufactured means completed and as defined in this section to other air furnaces and are not subject to this ready for shipment (whether or not residential hydronic heaters or forced- subpart: packaged) for purposes of determining air furnaces of the model line that is to (1) Residential wood heaters subject the date of manufacture. be certified; and to subpart AAA of this part. Manufacturer means any person who (4) The test was conducted in (2) Residential masonry heaters constructs or imports into the United accordance with the test methods and subject to subpart RRRR of this part. States a residential hydronic heater or procedures specified in § 60.5476. forced-air furnace. § 60.5473 What definitions must I know? Model line means all residential § 60.5474 What standards and As used in this subpart, all terms not hydronic heaters or forced-air furnaces requirements must I meet and by when? defined herein have the same meaning offered for sale by a single manufacturer (a) Particulate Matter Standards. given them in the Clean Air Act and that are similar in all material respects Unless exempted under § 60.5472, no subpart A of this part. as defined in this section. person is permitted to: Accredited test laboratory means a Particulate matter (PM) means total (1) On or after [EFFECTIVE DATE OF test laboratory that is accredited for particulate matter including PM10 and FINAL RULE], manufacture or sell at residential hydronic heater or forced-air PM2.5. retail a residential hydronic heater furnace certification testing under Pellet fuel means refined and unless it has been certified to meet the § 60.5477 and is an independent third- densified solid wood shaped into small 2015 particulate matter emission limits party test laboratory that is accredited pellets or briquettes that are uniform in in paragraph (b)(1) of this section. by a nationally recognized accrediting size, shape, moisture, density and (2) On or after [5 YEARS AFTER entity under ISO–IEC Standard 17025 to energy content. EFFECTIVE DATE OF FINAL RULE] perform testing using the test methods Representative residential hydronic manufacture or sell at retail a residential specified in § 60.5476 and approved by heater or forced-air furnace means an hydronic heater unless it has been

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certified to meet the 2020 particulate materials in an outdoor residential certification procedure specified in matter emission limit in paragraph (b)(2) hydronic heater, indoor residential § 60.533(f) except that, for the purposes of this section. hydronic heater, or residential forced-air of this paragraph, the references in (3) On or after [EFFECTIVE DATE OF furnace: § 60.533(f) to the ‘‘emission standards’’ FINAL RULE], manufacture or sell at (1) Residential or commercial garbage; in § 60.532 must be understood to refer retail a residential forced-air furnace (2) Lawn clippings or yard waste; to the emission limits in § 60.5474(b). unless it has been certified to meet the (3) Materials containing rubber, (b) Waiver from Submitting Test 2015 particulate matter emission limits including tires; Results. An applicant for certification in paragraph (b)(3) of this section. (4) Materials containing plastic; may apply for a potential waiver of the (4) On or after [5 YEARS AFTER (5) Waste petroleum products, paints requirements to submit the results of a EFFECTIVE DATE OF FINAL RULE] or paint thinners, or asphalt products; certification test pursuant to the manufacture or sell at retail a residential (6) Materials containing asbestos; certification procedures specified in forced-air furnace unless it has been (7) Construction or demolition debris; § 60.533(f) according to the procedure certified to meet the 2020 particulate (8) Paper products; cardboard, specified in § 60.533(g)(1). matter emission limit in paragraph (b)(4) plywood or particleboard. The (c) Certification Period. Unless of this section. prohibition against burning these revoked sooner by the Administrator, a (b)(1) 2015 residential hydronic heater materials does not prohibit the use of certificate of compliance will be valid 5 particulate matter emission limit: 0.32 fire starters made from paper, years from the date of issuance. lb/million Btu (0.137 g/megajoule) heat cardboard, saw dust, wax and similar (d) Renewal of Certification. (1) Any output and 7.5 g/hr (0.017 lb/hr) as substances for the purpose of starting a manufacturer of an affected residential determined by the test methods and fire in an affected residential hydronic hydronic heater or forced-air furnace procedures in § 60.5476. heater or forced-air furnace; may apply to the Administrator for (2) 2020 residential hydronic heater (9) Railroad ties or pressure treated potential renewal of a certificate of particulate matter emission limit: 0.06 lumber; compliance by submitting the material lb/million Btu (0.026 g/megajoule) heat (10) Manure or animal remains; specified in § 60.533(b) and following output as determined by the test (11) Salt water driftwood or other or the procedures specified in § 60.533(f). methods and procedures in § 60.5476. other previously salt water saturated (2) The certificate must be recertified (3) 2015 forced-air furnace particulate materials; or renewed every 5 years or the matter emission limit: 0.93 lb/million (12) Unseasoned wood; or manufacture may choose to no longer (13) Any materials that were not Btu (0.40 g/megajoule) heat output and manufacture or sell that model. If the included in the certification tests for the 7.5 g/hr (0.017 lb/hr) as determined by manufacturer chooses to no longer subject heater or furnace. the test methods and procedures in manufacture or sell that model, then the (g) Owner’s Manual. A person must § 60.5476. manufacturer must submit a statement not operate an outdoor residential (4) 2020 forced-air furnace particulate to the EPA for that model. A hydronic heater, indoor residential matter emission limit: 0.06 lb/million manufacturer may apply for potential hydronic heater, or residential forced-air Btu (0.026 g/megajoule) heat output as renewal of their certificate by furnace in a manner inconsistent with determined by the test methods and submitting certification information in the owner’s manual. The owner’s procedures in § 60.5476. accordance with § 60.533(b) or by (c) [Reserved] manual must clearly specify that affirming in writing that the wood (d) [Reserved] operation in a manner inconsistent with heater has been subject to no changes (e) Pellet Fuel Requirements. the owner’s manual would violate the that would impact emissions and Operators of outdoor residential warranty. hydronic heaters, indoor residential request a potential waiver from hydronic heaters, or residential forced- § 60.5475 What compliance and certification testing. air furnaces that are certified to burn certification requirements must I meet and (3) If the Administrator grants or by when? pellet fuels may only burn pellets that waives certification testing under have been produced under a licensing (a)(1) Certification Requirement. Each paragraph (d)(2) of this section, the agreement with the Pellet Fuels Institute affected residential hydronic heater and Administrator will give written notice to or an equivalent organization approved forced-air furnace must be certified to be the manufacturer setting forth the basis by the EPA. The pellet fuel must meet in compliance with the applicable for the determination and issue a the following minimum requirements: emission standards and other certification renewal. (1) Density: consistent hardness and requirements of this subpart. For each (4) If the Administrator denies the energy content with a minimum density model line manufactured or sold by a request for a renewal of certification, the of 38 pounds/cubic foot; single entity, e.g., company or Administrator will give written notice to (2) Dimensions: maximum length of manufacturer, compliance with the manufacturer setting forth the basis 1.5 inches and diameter between 0.230 applicable emission standards of for the determination. and 0.285 inches; § 60.5474(b) must be determined based (e) Recertification. The procedure (3) Inorganic fines: less than or equal on testing of representative affected specified in § 60.533(k) must be used to to 1 percent; residential hydronic heaters and forced- determine when a product line must be (4) Chlorides: less than or equal to 300 air furnaces within the model line. If recertified. parts per million by weight; and one entity licenses a model line to (f) Criteria for Revocation of (5) Ash content: no more than 2 another entity, each entity’s model line Certification. (1) The Administrator may percent. must be certified. If a entity changes the revoke certification of a product line if (6) A quality assurance process name of the entity or the name of the it is determined that the residential licensed by the Pellet Fuel Institute or model, the manufacturer must apply for hydronic heaters or forced-air furnaces equivalent organization approved by a new certification. being manufactured or sold in that EPA. (2) The manufacturer of each model model line do not comply with the (f) Prohibited Fuel Types. No person line must submit the information requirements of this subpart. Such a is permitted to burn any of the following required in § 60.533(b) and follow the determination will be based on all

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available evidence, including but not (a)(1) Method 28 WHH must be used matter emission rate (lb/million Btu limited to: to measure the heat output (million Btu/ heat output) of forced-air furnaces, (i) Test data from retesting of the hr) of outdoor and indoor residential except that for the 2020 standards, you original unit on which the certification hydronic heaters. should first test Burn Rate Categories 1 was conducted or a similar unit; (2) If the model is subject to the 2015 and 4 and then test 2 more times for (ii) A finding that the certification test particulate matter standards specified in whichever burn rate category is worse was not valid. The finding will be based § 60.5474(a)(1) and is equipped with an on a lb/million BTU heat output basis on problems or irregularities with the external heat storage unit, you must and report the results separately per certification test or its documentation, conduct testing according to paragraph burn rate category. but may be supplemented by other § 60.5476(a)(2)(i) and (ii) of this section. (d) CSA Method B415.1–10, section information; You have the option of submitting the (iii) A finding that the labeling of the test results of either (a)(2)(i) or (ii) of 13.7, must be used to measure the residential hydronic heater or forced-air this section to the Administrator as thermal efficiency of outdoor and furnace model line or the owner’s specified under § 60.5479 for indoor residential hydronic heaters. manual or marketing information does certification compliance. (e) [Reserved] (i) Conduct testing using crib wood as not comply with the requirements of (f) The manufacturer of an affected specified in Method 28 WHH. The heat § 60.5478; residential hydronic heater or forced-air input and heat output measurements (iv) Failure by the manufacturer to furnace must notify the Administrator of comply with the reporting and must be performed according to ASTM method E2618–13 entitled ‘‘Standard the date that certification testing is to recordkeeping requirements of begin, by email, to Wood Heater NSPS § 60.5479; Test Method for Determining Particulate Matter Emissions and Heating of Compliance Program at www.epa.gov/ (v) Physical examination showing that Wood_Heater_NSPS_Compliance_ a significant percentage (as defined in Outdoor Solid Fuel-fired Hydronic Program. This notice must be at least 30 the quality assurance plan, but no larger Heating Appliances.’’ Testing conducted days before the start of testing. The than 1 percent) of production units with continuously fed biomass as the notification of testing must include the inspected is not similar in all material fuel(s) must be conducted according to manufacturer’s name and address, the respects as defined in this subpart to the the relevant section of the ASTM accredited test laboratory’s name and representative affected hydronic heater method. or forced-air furnace submitted for (ii) Conduct testing using cord wood address, certifying entity name, the testing; or as specified in ‘‘A Test Method for model name and number (or, if (vi) Failure of the manufacturer to Certification of Cord Wood-Fired unavailable, some other way to conduct a quality assurance program in Hydronic Heating Appliances with distinguish between models), and the conformity with paragraph (g) of this Partial Thermal Storage: Measurement dates of testing. section. of Particulate Matter (PM) and Carbon (g) The accredited test laboratory must (2) Revocation of certification under Monoxide (CO) Emissions and Heating allow the manufacturer, the EPA and this paragraph will not take effect until Efficiency of Wood-Fired Hydronic delegated states to observe certification the manufacturer concerned has been Heating Appliances with Partial testing. However, manufacturers must given written notice by the Thermal Storage.’’ not involve themselves in the conduct (3) If the model is subject to the 2020 Administrator setting forth the basis for of the test after the pretest burn (as particulate matter standards specified in the proposed determination and an defined by EPA Method 28 WHH) has § 60.5474(a)(2) and is equipped with an opportunity to request a review under begun. Communications between the external partial heat storage unit, you § 60.5481. manufacturer and laboratory or must conduct cord wood testing (g) Quality Assurance Program. For certifying entity personnel regarding according to the test methods and each certified model line, the operation of the hydronic heater must procedures of ‘‘A Test Method for manufacturer must conduct a quality be limited to written communications Certification of Cord Wood-Fired assurance program according to the transmitted prior to the first pretest burn Hydronic Heating Appliances with requirements of § 60.533(m). of the certification series. Written Partial Thermal Storage: Measurement (h) EPA Compliance Audit Testing. communications between the The Administrator will conduct of Particulate Matter (PM) and Carbon Monoxide (CO) Emissions and Heating manufacturer and laboratory personnel compliance audit testing according to may be exchanged during the the requirements of § 60.533(n). For the Efficiency of Wood-Fired Hydronic Heating Appliances with Partial certification test only if deviations from purposes of this paragraph, references in the test procedures are observed that § 60.533(n) to § § 60.532 through 60.535 Thermal Storage.’’ (b) Method 28 WHH in conjunction constitute improper conduct of the test. must be understood to refer to the with ASTM E2515–10 must be used to All communications must be included comparable paragraphs in §§ 60.5474 measure the particulate matter emission in the test documentation required to be through 60.5477 and the associated test rate (lb/million Btu heat output) of submitted pursuant to § 60.533(b)(3) and methods specified in this subpart. outdoor and indoor residential hydronic must be consistent with instructions § 60.5476 What test methods and heaters, except that for the 2020 provided in the owner’s manual procedures must I use to determine standards, you should first test Burn required under § 60.5478(f), except to compliance with the standards and Rate Categories 1 and 4 and then test 2 the extent that they address details of requirements for certification? more times for whichever burn rate the certification tests that would not be Test methods and procedures category is worse on a lb/million BTU relevant to owners. specified in this section or in appendix heat output basis and report the results § 60.5477 What procedures must I use for A of this part, except as provided under separately per burn rate category. laboratory accreditation? § 60.8(b), must be used to determine (c) Canadian Standards compliance with the standards and Administration (CSA) Method B415.1– The accreditation procedure specified requirements for certification under 10 must be used to measure the heat in § 60.535 must be used to certify test §§ 60.5474 and 60.5475 as follows: output (million Btu/hr) and particulate laboratories under this subpart.

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§ 60.5478 What requirements must I meet a representation by the manufacturer as ultimate purchaser. The commercial for permanent labels and owner’s manuals? to any residential hydronic heater or owner must also make current and (a) Permanent Label Requirements. forced-air furnace that bears it: historical owner’s manuals available on (1) Each affected residential hydronic (1) That the certification of the company Web site. heater or forced-air furnace compliance was in effect at the time the (2) Installation information: manufactured or sold on or after the residential hydronic heater or forced-air Requirements for achieving proper draft. date the applicable standards come into furnace left the possession of the (3) Operation and maintenance effect as specified in § 60.5474, must manufacturer; information: have a permanent label affixed to it that (2) That the manufacturer was, at the (i) Fuel loading procedures, meets the requirements of this section. time the label was affixed, conducting a recommendations on fuel selection, and (2) The permanent label must contain quality assurance program in conformity warnings on what fuels not to use, such the following information: with the manufacturer’s quality as treated wood, colored paper, (i) Month and year of manufacture of assurance program; and cardboard, solvents, trash and garbage. the individual unit; (3) That as to any residential hydronic (ii) Fire starting procedures (ii) Model name or number; and (iii) Proper use of air controls heater or forced-air furnace individually (iv) Ash removal procedures (iii) Serial number. tested for emissions by the manufacturer (3) The permanent label must: (v) Instructions for replacement of under § 60.5475(f), it met the applicable (i) Be affixed in a readily visible or gaskets and other parts that are critical emission limit. accessible location in such a manner to the emissions performance of the unit (e)(1) If an affected residential that it can be easily viewed before and and other maintenance and repair hydronic heater or forced-air furnace is after the appliance is installed; instructions (ii) Be at least 8.9 cm long and 5.1 cm manufactured in the United States for (vi) The following statement: ‘‘This wide (3 1/2 inches long and 2 inches export as provided in § 60.5472(b)(1), wood heating appliance needs periodic wide); the following statement must appear on inspection and repair for proper (iii) Be made of a material expected to the permanent label: operation. It is against federal law to last the lifetime of the residential U.S. ENVIRONMENTAL PROTECTION operate this wood heating appliance in hydronic heater or forced-air furnace; AGENCY Export appliance. May not a manner inconsistent with operating (iv) Present required information in a be operated in the United States. instructions in the manual.’’ manner so that it is likely to remain (2) If an affected residential hydronic (4) Any manufacturer using the EPA legible for the lifetime of the residential heater or forced-air furnace is model language contained in appendix hydronic heater or forced-air furnace; manufactured for use for research and I of this part to satisfy any requirement and development purposes as provided in of this paragraph (f) will be considered (v) Be affixed in such a manner that § 60.5472(b)(2), the following statement to be in compliance with that it cannot be removed without damage to must appear on the permanent label: requirement, provided that the particular model language is printed in the label. U.S. ENVIRONMENTAL PROTECTION (4) The permanent label may be full, with only such changes as are AGENCY Not certified. Research necessary to ensure accuracy for the combined with any other label, as long Appliance. Not approved for sale. as the required information is displayed, particular model line. the integrity of the permanent label is (3) If an affected residential hydronic (5) Residential hydronic heaters and not compromised, and the requirements heater or forced-air furnace is a non forced-air furnaces that are affected by of § 60.5478(a)(3) are still met. wood-burning hydronic heater or this subpart but have been operated by (b) If the residential hydronic heater forced-air furnace exclusively as a noncommercial owner are not subject or forced-air furnace belongs to a model provided in § 60.5472(b)(3) the to paragraph (f) of this section when line certified under § 60.5475, and it has following statement must appear on the offered for resale. permanent label: been found to meet the applicable § 60.5479 What records must I keep and emission limits or tolerances through U.S. ENVIRONMENTAL PROTECTION what reports must I submit? AGENCY This appliance is not quality assurance testing, one of the (a) Each manufacturer who holds a certified for wood burning. Use of any following statements, as appropriate, certificate of compliance pursuant to wood fuel is a violation of federal law. must appear on the permanent label: § 60.5475(a)(2) for a model line must U.S. ENVIRONMENTAL PROTECTION (f) Owner’s Manual. (1) Each affected maintain records containing the AGENCY Certified to comply with residential hydronic heater or forced-air following information with respect to 2015 particulate emission standards. furnace offered for sale by a commercial that model line. or owner must be accompanied by an (1) All documentation pertaining to U.S. ENVIRONMENTAL PROTECTION owner’s manual that must contain the the certification test used to obtain AGENCY Certified to comply with information listed in paragraph (f)(2) of certification, including the full test 2020 particulate emission standards. this section (pertaining to installation), report and raw data sheets, laboratory (c) The label under paragraph (b) of and paragraph (f)(3) of this section technician notes, calculations, and the this section must also contain the (pertaining to operation and test results for all test runs. following statement on the permanent maintenance). Such information must (2) Results of the quality assurance label: be adequate to enable consumers to program inspections required pursuant ‘‘This appliance needs periodic achieve optimal emissions performance. to § 60.5475(g). inspection and repair for proper Such information must be consistent (3) For emissions tests conducted operation. Consult owner’s manual for with the operating instructions provided pursuant to the quality assurance further information. It is against the law by the manufacturer to the accredited program required by § 60.5475(g), all to operate this appliance in a manner test laboratory for operating the test reports, data sheets, laboratory inconsistent with operating instructions residential hydronic heater or forced-air technician notes, calculations, and test in the owner’s manual.’’ furnace during certification testing, results for all test runs, the corrective (d) Any label statement under except for details of the certification test actions taken, if any, and any follow-up paragraph (b) of this section constitutes that would not be relevant to the actions such as additional testing.

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(b) Each accredited test laboratory with ERT or if ERT is not available to (i) Receives the required must maintain records consisting of all accept reports at the time the final rule documentation from the manufacturer documentation pertaining to each is published. Owners or operators who or a previous commercial owner; and certification test and audit test, claim that some of the information being (ii) Provides that documentation including the full test report and raw submitted for performance tests is unaltered to any person to whom the data sheets, laboratory technician notes, confidential business information (CBI) residential hydronic heater or forced-air calculations, and the test results for all must submit a completed ERT file, furnace that it covers is sold or test runs. Each accredited test laboratory including information claimed to be CBI transferred. must submit initial and biennial on a compact disk or other commonly (d)(1) In any case in which the proficiency test results to the used electronic storage media Administrator revokes a certificate of Administrator. (including, but not limited to, flash compliance either for the knowing (c) Each manufacturer must retain drives), to the EPA and the same ERT submission of false or inaccurate each residential hydronic heater and file, with the CBI omitted, to the EPA information or other fraudulent acts, or forced-air furnace upon which via CDX as described earlier in this based on a finding under certification tests were performed and paragraph. The compact disk must be § 60.5475(e)(1)(ii) that the certification certification granted under clearly marked as CBI and mailed to test was not valid, the Administrator § 60.5475(a)(2) at the manufacturer’s U.S. EPA/OAQPS/CORE CBI Office, may give notice of that revocation and facility for as long as the model line is Attention: WebFIRE Administrator, MD the grounds for it to all commercial manufactured. Each heater or furnace C404–02, 4930 Old Page Rd., Durham, owners. must remain sealed and unaltered. Any NC 27703. Emission data and all (2) On and after the date of receipt of such residential hydronic heater or information necessary to determine the notice given under paragraph (d)(1) forced-air furnace must be made compliance, except sensitive of this section, no commercial owner is available upon request to the engineering drawings and sensitive permitted to sell any residential Administrator for inspection and detailed material specifications, may not hydronic heater or forced-air furnace testing. be claimed as CBI. covered by the revoked certificate (other (d) Each manufacturer of an affected than to the manufacturer) unless the residential hydronic heater or forced-air § 60.5480 What activities are prohibited model line has been recertified in furnace certified pursuant to under this subpart? accordance with this subpart. § 60.5475(a)(2) must submit a report to (a) No person is permitted to operate (e) No person is permitted to install or the Administrator every 2 years an affected residential hydronic heater operate an affected residential hydronic following issuance of a certificate of or forced-air furnace that does not have heater or forced-air furnace except in a compliance for each model line. This affixed to it a permanent label pursuant manner consistent with the instructions report must include the sales for each to § 60.5478(b) or (c). on its permanent label and in the model by state and certify that no (b)(1) No commercial owner is owner’s manual pursuant to changes in the design or manufacture of permitted to advertise for sale, offer for § 60.5478(f), including only using fuels the model line have been made that sale, or sell an affected residential for which the unit is certified. require recertification pursuant to hydronic heater or forced-air furnace (f) No person is permitted to operate § 60.5475(e). that does not have affixed to it a an affected residential hydronic heater (e)(1) Unless otherwise specified, all permanent label pursuant to or forced-air furnace that has been records required under this section must § 60.5478(b) or (e)(3). physically altered to exceed the be maintained by the manufacturer, (2) No commercial owner is permitted tolerance limits of its certificate of commercial owner of the affected to advertise for sale, offer for sale, or sell compliance. residential hydronic heater or forced-air an affected residential hydronic heater (g) No person is permitted to alter, furnace, accredited test laboratory or or forced-air furnace labeled under deface, or remove any permanent label certifying entity for a period of no less § 60.5478(e)(1) except for export. required to be affixed pursuant to than 5 years. (c)(1) No commercial owner is § 60.5478. (2) Unless otherwise specified, all permitted to advertise for sale, offer for (h) No certifying entity is permitted to reports to the Administrator required sale, or sell an affected residential certify its own certification test report. under this subpart must be made to: hydronic heater or forced-air furnace Wood Heater NSPS Compliance permanently labeled under § 60.5478(b) § 60.5481 What Petition for Review Program at www.epa.gov/Wood_Heater_ or (e)(3) unless: procedures apply to me? NSPS_Compliance_Program. (i) The affected appliance has been (a) In any case where the (f) Within 60 days after the date of certified to comply with 2020 Administrator: completing each performance test, each particulate emission standards. This (1) Denies an application under manufacturer or accredited test prohibition does not apply to affected § 60.5475(a)(2); laboratory or certifying entity must residential hydronic heaters or forced- (2) Issues a notice of revocation of submit performance test data air furnaces regulated under this subpart certification pursuant to § 60.5475(e); electronically to the EPA’s Central Data that have been previously owned and (3) Denies an application for Exchange (CDX) by using the Electronic operated by a noncommercial owner; laboratory accreditation pursuant to Reporting Tool (ERT) (http:// and § 60.5477; or www.epa.gov/ttn/chief/ert/index.html). (ii) The commercial owner provides (4) Issues a notice of revocation of Only data collected using test methods any purchaser or transferee with an laboratory accreditation pursuant to compatible with ERT are subject to this owner’s manual that meets the § 60.5477, the manufacturer or requirement to be submitted requirements of § 60.5478(f), a copy of laboratory affected may submit to the electronically to EPA’s CDX. the warranty and a moisture meter. EPA a request for review under this Manufacturers may submit compliance (2) A commercial owner other than a section pursuant to the procedures reports to the EPA via regular mail at manufacturer complies with the specified in § 60.539 within 30 days the address listed below if the test requirements of paragraph (c)(1) of this following receipt of the required methods they use are not compatible section if the commercial owner: notification of the action in question.

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(b) In any case where the sale, import for sale, distribute, offer to 17065 and approved by the EPA for Administrator issues a notice of distribute, introduce, or deliver for conducting certifications, inspections revocation pursuant to § 60.5475(g), the introduction, into commerce in the and audits under this subpart. manufacturer may submit to the EPA a United States, a residential masonry Coal-only heater means an enclosed, Petition for Review request under this heater manufactured on or after coal-burning appliance capable of space section with the time limits set out in [EFFECTIVE DATE OF FINAL RULE]. heating or domestic water heating § 60.533(p)(4). (b) Each affected masonry heater must which has all of the following comply with the provisions of this characteristics: § 60.5482 Who implements and enforces subpart unless exempted under (1) Installation instructions that state this subpart? paragraphs (b)(1) through (b)(3) of this that the use of wood in the heater, (a) In delegating implementation and section. except for coal ignition purposes, is enforcement authority to a state under (1) Affected masonry heaters prohibited by law; and section 111(c) of the Clean Air Act, the manufactured in the United States for (2) The model is listed by a nationally authorities contained in paragraph (b) of export are exempt from the applicable recognized safety-testing laboratory for this section must be retained by the emission limits of § 60.5486 and the coal use only, except for coal ignition Administrator and not transferred to a requirements of § 60.5487. purposes. state. (2) Affected masonry heaters used for Commercial owner means any person (b) Authorities that must not be research and development purposes that who owns or controls a residential delegated to states: are never offered for sale or sold and masonry heater in the course of the (1) Section 60.5473, Definitions; that are not used to provide heat are business of the manufacture, (2) Section 60.5475, Compliance and exempt from the applicable emission importation, distribution, or sale of the certification; limits of § 60.5486 and the requirements unit. (3) Section 60.5476, Test methods and of § 60.5487. No more than six affected Manufactured means completed and procedures; and ready for shipment (whether or not (4) Section 60.5477, Laboratory masonry heaters manufactured per packaged) or installed in a residence in accreditation. model line may be exempted for this purpose. the case of custom-built masonry § 60.5483 What parts of the General (3) Affected masonry heaters that do heaters for purposes of determining the Provisions do not apply to me? not burn wood or wood pellets (such as date of manufacture. The following provisions of subpart A coal-only heaters that meet the Manufacturer means any person who of part 60 do not apply to this subpart: definition in § 60.5485 or corn-only constructs or imports into the United (a) Section 60.7; heaters) are exempt from the applicable States a residential masonry heater. (b) Section 60.8(a), (c), (d), (e), (f) and emission limits of § 60.5486 and the Model line means all residential (g); and requirements of § 60.5487. masonry heaters offered for sale by a (c) Section 60.15(d). (c) The following are not affected single manufacturer that are similar in ■ 5. Add subpart RRRR to read as masonry heaters and are not subject to all material respects as defined in this follows: this subpart: section. Particulate matter (PM) means total Subpart RRRR—Standards of Performance (1) Residential wood heaters subject for New Residential Masonry Heaters to subpart AAA of this part. particulate matter including PM10 and (2) Residential hydronic heaters and PM2.5. Sec. forced-air furnaces subject to subpart Pellet fuel means refined and 60.5484 Am I subject to this subpart? densified wood shaped into small 60.5485 What definitions must I know? QQQQ of this part. pellets or briquettes that are uniform in 60.5486 What standards and requirements § 60.5485 What definitions must I know? must I meet and by when? size, shape, moisture, density and 60.5487 What compliance and certification As used in this subpart, all terms not energy content. requirements must I meet and by when? defined herein have the same meaning Representative affected masonry 60.5488 What test methods and procedures given them in the Clean Air Act and heater means an individual residential must I use to determine compliance with subpart A of this part. masonry heater that is similar in all the standards and requirements for Accredited test laboratory means a material respects as defined in this certification? test laboratory that is accredited for section to other residential masonry 60.5489 What procedures must I use for masonry heater certification testing heaters within the model line it laboratory accreditation? under § 60.5489 or is an independent 60.5490 What requirements must I meet for represents. permanent labels and owner’s manuals? third party test laboratory that is Residential masonry heater means a 60.5491 What records must I keep and what accredited by a nationally recognized factory-built or site-built wood-burning reports must I submit? accrediting entity under ISO–IEC device that has the following 60.5492 What activities are prohibited Standard 17025 to perform testing using characteristics: under this subpart? the test methods specified in § 60.5488 (1) The device has a core constructed 60.5493 What Petition for Review and approved by the EPA for primarily of manufacturer-built, procedures apply to me? conducting certification tests under this supplied, or specified masonry 60.5494 Who implements and enforces this subpart. materials (such as stone, cemented subpart? At retail means the sale by a aggregate, clay, tile, or other non- 60.5495 What parts of the General Provisions do not apply to me? commercial owner of a residential combustible, non-metallic solid masonry heater to the ultimate materials) that weighs at least 1700 Subpart RRRR—Standards of purchaser. pounds; Performance for New Residential Certifying entity means an (2) The firebox effluent of the Masonry Heaters independent third party that is masonry heater travels horizontally and/ accredited by a nationally recognized or downward through one or more heat § 60.5484 Am I subject to this subpart? accrediting entity under ISO–IEC absorbing masonry duct(s) for a distance (a) You are subject to this subpart if Standard 17020 to perform certifications at least the length of the largest single you operate, manufacture, sell, offer for and inspections under ISO–IEC Guide internal firebox dimension before

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leaving the masonry heater. These (2) The test was conducted by an (6) A quality assurance process parameters are determined as follows: accredited test laboratory as defined in licensed by the Pellet Fuel Institute or (i) Horizontal or downward travel this section; equivalent organization approved by the distance is defined as the net horizontal (3) The test was conducted on a EPA. and/or downward internal duct length, residential masonry heater similar in all (d) Prohibited Fuel Types. No person measured from the top of the uppermost material respects as defined in this is permitted to burn any of the following firebox door opening(s) to the exit of the section to other residential masonry materials in a residential masonry masonry heater as traveled by any heaters of the model line that is to be heater: effluent on a single pathway through certified; and (1) Residential or commercial garbage; duct channel(s) within the heater (or (4) The test was conducted in (2) Lawn clippings or yard waste; average of net internal duct lengths for accordance with the test methods and (3) Materials containing rubber, multiple pathways of different lengths, procedures specified in § 60.5488. including tires; (4) Materials containing plastic; if applicable). Net internal duct length § 60.5486 What standards and is measured from the center of the requirements must I meet and by when? (5) Waste petroleum products, paints or paint thinners, or asphalt products; internal side or top surface of a duct, (a) Particulate Matter Standard. horizontally or vertically to the center of (6) Materials containing asbestos; Unless exempted under § 60.5484: (7) Construction or demolition debris; the opposite side or the bottom surface (1) On or after [EFFECTIVE DATE OF (8) Paper products, cardboard, of the same duct, and summed for FINAL RULE], no person is permitted to plywood, or particleboard. The multiple ducts or directions on a single manufacture and, on or after [6 prohibition against burning these pathway, if applicable. For duct MONTHS AFTER EFFECTIVE DATE OF materials does not prohibit the use of channel(s) traversing horizontal angles FINAL RULE], no person is permitted to fire starters made from paper, of less than ninety degrees from vertical, sell at retail a residential masonry heater cardboard, saw dust, wax and similar only the net actual horizontal distance unless the heater has been certified to substances for the purpose of starting a traveled is included in the total duct meet the particulate matter emission length; and limit in paragraph (b) of this section or fire in an affected masonry heater; (9) Railroad ties or pressure treated (ii) The largest single internal firebox the manufacturer is a small wood; dimensions is defined as the longest of manufacturer as defined in paragraph (10) Manure or animal remains; or either the length or the width of the (a)(2) of this section. firebox hearth and the height of the (2) On or after [5 YEARS AFTER (11) Salt water driftwood or other firebox, measured from the hearth to the EFFECTIVE DATE OF FINAL RULE], no previously salt water saturated top of the uppermost firebox door small manufacturer is permitted to materials. opening(s); manufacture a residential masonry (e) Owner’s Manual. A person must (3) The device has one or more air- heater unless it has been certified to not operate a residential masonry heater controlling doors for fuel-loading that meet the particulate matter emission in a manner inconsistent with the are designed to be closed during the limit in paragraph (b) of this section. For owner’s manual. The owner’s manual combustion of fuel loads, and that the purposes of this subpart, a small must clearly specify that operation in a control the entry of combustion air manufacturer is defined as a manner inconsistent with the owner’s (beyond simple spark arresting screens) manufacturer that constructs less than manual would violate the warranty. to one or more inlets as prescribed by 15 residential masonry heaters per year. § 60.5487 What compliance and the masonry heater manufacturer; and A small manufacturer may elect to certification requirements must I meet and (4) The device is assembled in comply with the emission limit in by when? conformance with Underwriters paragraph (b) of this section earlier than (a)(1) Certification Requirement. Each Laboratories’ and/or manufacturer’s specified in this paragraph. affected residential masonry heater must specifications for its assembly and, if (b) Residential masonry heater be certified to be in compliance with the the core is constructed with a particulate matter emission limit: 0.32 applicable emission standards and other substantial portion of materials not lb/million Btu (0.137 g/megajoule) heat requirements of this subpart. For each supplied by the manufacturer, is output as determined by the test model line manufactured or sold by a certified by a representative of the methods and procedures in § 60.5488. single entity, e.g., company or (c) Pellet Fuel Requirements. manufacturer to be substantially in manufacturer, compliance with Operators of masonry heaters that are conformance with those specifications. applicable emission standards of certified to burn pellet fuels may only Sale means the transfer of ownership § 60.5486(b) must be determined based burn pellets that have been produced or control, except that a transfer of on testing of representative affected under a licensing agreement with the control of an affected heater for research appliances within the model line. If one and development purposes within the Pellet Fuel Institute or an equivalent organization approved by EPA. The entity licenses a model line to another scope of § 60.5484(b)(2) is not a sale. pellet fuel must meet the following entity, each entity’s model line must be Seasoned wood means wood with a minimum requirements: certified. If an entity changes the name moisture content of 20 percent or less. (1) Density: consistent hardness and of the entity or the name of the model, Similar in all material respects means energy content with a minimum density the manufacturer must apply for a new that the construction materials, exhaust of 38 pounds/cubic foot; certification. and inlet air system, and other design (2) Dimensions: maximum length of (2) The manufacturer of each model features are within the allowed 1.5 inches and diameter between 0.230 line must submit to the EPA the tolerances for components identified in and 0.285 inches; information required in paragraph (b) of § 60.533(k). (3) Inorganic fines: less than or equal this section and follow the certification Valid certification test means a test to 1 percent; procedure specified in § 60.533(f) except that meets the following criteria: (4) Chlorides: less than or equal to 300 that, for the purposes of this paragraph, (1) The Administrator was notified parts per million by weight; and the reference in § 60.533(f) to the about the test in accordance with (5) Ash content: no more than 2 emission limits in § 60.532 must be § 60.5488(d) percent. understood to refer to the emission

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limits in § 60.5486(b) and the associated (3) If the Administrator waives model line was certified using the test methods are those specified in this certification testing under paragraph procedure defined in paragraph (a)(3) of subpart. (c)(2) of this section, the Administrator this section, the manufacturer must (3) As an alternative to the will give written notice to the conduct a quality assurance program certification process described in manufacturer setting forth the basis for according to the requirements of paragraph (a)(2) of this section, an the determination and issue a § 60.533(m). applicant may choose to submit a certification. (h) EPA Compliance Audit Testing. computer model simulation program for (4) If the Administrator denies the The Administrator may conduct review and certification by the request, the Administrator will give compliance audit testing according to certifying entity and subsequent review written notice to the manufacturer the requirements of § 60.533(n). For the and approval by the Administrator for setting forth the basis for the purposes of this paragraph, references in use as a surrogate for emissions testing. determination. § 60.533(p) to § § 60.532 through 60.535 The Administrator will post the (e) Recertification. must be understood to refer to the certified model on the EPA Burnwise (1) The procedure specified in comparable paragraphs in § § 60.5486 Web site. § 60.533(k) must be used to determine through 60.5489, respectively. The (b) Waiver from Submitting Test when a model line must be recertified. requirements of this paragraph do not Results. (2) If the manufacturer qualifies as a apply to small manufacturers as defined (1) An applicant for certification may small manufacturer as defined in in § 60.5486(a)(2) and where the model apply for a potential waiver of the § 60.5486(a)(2) and the model line was line was certified using the procedure requirements to submit the results of a certified using the procedure defined in defined in paragraph (a)(3) of this certification test pursuant to the paragraph (a)(3) of this section, the section. certification procedures specified in recertification provisions of paragraph § 60.533(f) according to the procedure (e)(1) of this section do not apply. § 60.5488 What test methods and specified in § 60.533(g)(1). (f) Criteria for Revocation of procedures must I use to determine (2) Alternatively, an applicant may Certification. compliance with the standards and submit results using a validated (1) The Administrator may revoke requirements for certification? computer model simulation program certification of a model line if it is Test methods and procedures that demonstrates the masonry heater determined that the residential masonry specified in this section or in appendix design meets the emission limit in heaters produced in that model line do A of this part, except as provided under § 60.5486(b). not comply with the requirements of § 60.8(b), must be used to determine (c) Certification Period. this subpart. Such a determination will compliance with the standards and (1) Unless revoked sooner by the be based on all available evidence, requirements for certification under Administrator, a certificate of including but not limited to: § § 60.5486 and 60.5487 as follows: compliance will be valid for 5 years (i) Test data from retesting of the (a) ASTM E2817–11, Standard Test from the date of issuance. original unit on which the certification Method for Test Fueling Masonry (2) If the manufacturer qualifies as a was conducted or a similar unit; Heaters, must be used to measure the small manufacturer as defined in (ii) A finding that the certification test heat output (million Btu/hr) of § 60.5486(a)(2) and the model was or model simulation was not valid; residential masonry heaters. certified using the procedure defined in (iii) A finding that the labeling of the (b) ASTM E2515–10 must be used in paragraph (a)(3) of this section, the residential masonry heater model line or conjunction with ASTM E2817–11 to certificate of compliance will be valid the associated owner’s manual or measure the particulate emission rate for the life of the model line unless it marketing information does not comply (lb/million BTU heat output) of is revoked by the Administrator. with the requirements of § 60.5490; residential masonry heaters. (d) Renewal of Certification. (iv) Failure by the manufacturer to (c)(1) ASTM WK26558, New (1) Any manufacturer of an affected comply with the reporting and Specification for Calculation Method for masonry heater may apply to the recordkeeping requirements of Custom Designed, Site Built Masonry Administrator for potential renewal of a § 60.5491; Heaters may be used as an alternative to certificate of compliance by submitting (v) Physical examination showing that certification testing as specified in the material specified in § 60.533(b) and an inspected production unit is not paragraphs (a), (b) and (d) of this following the process specified in similar in all material respects as section. § 60.533(f). defined in this subpart to the (2) If the Administrator approves an (2) A certificate issued pursuant to representative affected masonry heater alternative computer model simulation paragraph (c)(1) of this section must be submitted for testing; or program pursuant to § 60.5487(a)(3), the recertified or renewed every 5 years or (vi) Failure of the manufacturer to approved simulation program also may the manufacture may choose to no conduct a quality assurance program in be used as an alternative to certification longer manufacture or sell that model. If conformity with paragraph (f) of this testing as specified in paragraphs (a) the manufacturer chooses to no longer section. and (b) of this section. manufacture or sell that model, then the (2) Revocation of certification under (d) Method 10 in appendix A–4 of this manufacturer must submit a statement this paragraph will not take effect until part must be used to measure CO to EPA for that model. A manufacturer the manufacturer concerned has been emissions of residential masonry may apply to the Administrator for given written notice by the heaters. potential renewal of their certificate by Administrator setting forth the basis for (e) The manufacturer of an affected submitting certification information in the proposed determination and an masonry heater must notify the accordance with § 60.533(b) or by opportunity to request a Petition for Administrator of the date that affirming in writing that the wood Review under § 60.5493. certification testing is to begin, by email, heater has been subject to no changes (g) Quality Assurance Program. For to Wood Heater NSPS Compliance that would impact emissions and each certified model line, except for any Program at www.epa.gov/Wood_Heater_ request a potential waiver from model line at small manufacturers as NSPS_Compliance_Program. This certification testing. defined in § 60.5486(a)(2) and where the notice must be received at least 30 days

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before the start of testing. The (iii) Be made of a material expected to by the manufacturer under § 60.5487(f), notification of testing must include the last the lifetime of the residential it met the applicable emission limit. manufacturer’s name and address, the masonry heater; (e)(1) If an affected masonry heater is accredited test laboratory’s name and (iv) Present required information in a manufactured in the United States for address, certifying entity name, the manner so that it is likely to remain export as provide in § 60.5484(b)(1), the model name and number (or, if legible for the lifetime of the residential following statement must appear on the unavailable, some other way to masonry heater; and permanent label: distinguish between models), and the (v) Be affixed in such a manner that U.S. ENVIRONMENTAL PROTECTION dates of testing. it cannot be removed without damage to AGENCY Export unit. May not be (f) The accredited test laboratory must the label. operated in the United States. allow the manufacturer, the EPA and (4) The permanent label may be (2) If an affected masonry heater is delegated states to observe certification combined with any other label, as long manufactured for research and testing. However, manufacturers must as the required information is displayed, development purposes as provided in not involve themselves in the conduct the integrity of the permanent label is § 60.5484(b)(2), the following statement of the test after the pretest burn (as not compromised, and the requirements must appear on the permanent label: defined by ASTM E2817–11) has begun. of § 60.5490(3) are still met. U.S. ENVIRONMENTAL PROTECTION Communications between the (b)(1) If the residential masonry heater AGENCY Not certified. Research unit. manufacturer and laboratory or belongs to a model line certified under Not approved for sale. certifying entity personnel regarding § 60.5487, and it has been found to meet operation of the masonry heater must be the applicable emission limits or (3) If an affected masonry heater is a limited to written communications tolerances through quality assurance non wood-burning masonry heater transmitted prior to the first pretest burn testing, the following statement must exclusively as provided § 60.5484(b)(3) of the certification series. Written appear on the permanent label: the following statement must appear on the permanent label: communications between the U.S. ENVIRONMENTAL PROTECTION manufacturer and laboratory personnel AGENCY Certified to comply with U.S. ENVIRONMENTAL PROTECTION may be exchanged during the 2015 particulate emissions standards. AGENCY This appliance is not certification test only if deviations from certified for wood burning. Use of any (2) If the masonry heater belongs to a the test procedures are observed that wood fuel is a violation of federal law. model line owned by a manufacturer constitute improper conduct of the test. that qualifies for the small volume (f) Owner’s Manual. All communications must be included manufacturer delay as specified in (1) Each affected masonry heater in the test documentation required to be § 60.5486(a)(2), the following statement offered for sale by a commercial owner submitted pursuant to § 60.533(b)(3) and must appear on the permanent label: must be accompanied by an owner’s must be consistent with instructions manual that must contain the provided in the owner’s manual U.S. ENVIRONMENTAL PROTECTION information listed in paragraph (f)(2) of required under § 60.5490(g), except to AGENCY This masonry heater was this section (pertaining to installation), the extent that they address details of produced by a small volume and paragraph (f)(3) of this section the certification tests that would not be manufacturer that manufactures or (pertaining to operation and relevant to owners. exports to the United States fewer maintenance). Such information must than 15 masonry heaters per year. be adequate to enable consumers to § 60.5489 What procedures must I use for This appliance cannot be sold after [5 laboratory accreditation? achieve optimal emissions performance. YEARS AFTER EFFECTIVE DATE OF Such information must be consistent The accreditation procedure specified FINAL RULE]. with the operating instructions provided in § 60.535 must be used to certify test (c) The label under paragraph (b) of by the manufacturer to the accredited laboratories under this subpart. this section must also contain the test laboratory for operating the § 60.5490 What requirements must I meet following statement on the permanent residential masonry heater, except for for permanent labels and owner’s manuals? label: ‘‘This appliance needs periodic details of the certification test that inspection and repair for proper would not be relevant to the ultimate (a) Permanent Label Requirements. operation. Consult owner’s manual for purchaser. The commercial owner must (1) Each affected masonry heater further information. It is against the law also make current and historical owner’s manufactured on or after the date the to operate this appliance in a manner manuals available on the company Web applicable standards come into effect as inconsistent with operating instructions site. specified in § 60.5486, must have a in the owner’s manual.’’ (2) Installation information: permanent label affixed to it that meets (d) Any label statement under Requirements for achieving proper draft. the requirements of this section. paragraph (b) of this section constitutes (3) Operation and maintenance (2) The permanent label must contain a representation by the manufacturer as information: the following information: to any residential masonry heater that (i) Fuel loading procedures, (i) Month and year of manufacture of bears it: recommendations on fuel selection, and the individual unit; (1) That the certification was in effect warnings on what fuels not to use, such (ii) Model name or number; and at the time the residential masonry as treated wood, colored paper, (iii) Serial number. heater left the possession of the cardboard, solvents, trash and garbage. (3) The permanent label must: manufacturer; (ii) Fire starting procedures (i) Be affixed in a readily visible or (2) That the manufacturer was, at the (iii) Proper use of air controls accessible location in such a manner time the label was affixed, conducting a (iv) Ash removal procedures that it can be easily viewed before and quality assurance program in conformity (v) Instructions for replacement of after the appliance is installed; with the manufacturer’s quality gasket and other parts that are critical to (ii) Be at least 8.9 cm long and 5.1 cm assurance program; and the emissions performance of the unit wide (3 1/2 inches long and 2 inches (3) That as to any residential masonry and other maintenance and repair wide); heater individually tested for emissions instructions

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(vi) The following statement: ‘‘This technician notes, calculations, and the operators who claim that some of the wood heating appliance needs periodic test results for all test runs. Each information being submitted for inspection and repair for proper accredited test laboratory must submit performance tests is confidential operation. It is against federal law to initial and biennial proficiency test business information (CBI) must submit operate this wood heating appliance in results to the Administrator. a completed ERT file, including a manner inconsistent with operating (c) Each manufacturer must retain information claimed to be CBI, on a instructions in the manual.’’ each residential masonry heater upon compact disk or other commonly used (4) Any manufacturer using the EPA which certification tests were performed electronic storage media (including, but model language contained in appendix and certification granted pursuant to not limited to, flash drives), to the EPA, I of this part to satisfy any requirement § 60.5487(a)(2) at the manufacturer’s and the same ERT file, with the CBI of this paragraph (f) will be considered facility for as long as the model line is omitted, to the EPA via CDX as to be in compliance with that manufactured. Each masonry heater described earlier in this paragraph. The requirement, provided that the must remain sealed and unaltered. Any compact disk must be clearly marked as particular model language is printed in such residential masonry heater must be CBI and mailed to U.S. EPA/OAQPS/ full, with only such changes as are made available upon request to the CORE CBI Office, Attention: WebFIRE necessary to ensure accuracy for the Administrator for inspection and Administrator, MD C404–02, 4930 Old particular model line. testing. Page Rd., Durham, NC 27703. Emission (5) Residential masonry heaters that (d)(1) Each manufacturer of an data and all information necessary to are affected by this subpart but have affected masonry heater certified determine compliance, except sensitive been operated by a noncommercial pursuant to § 60.5487 must submit a engineering drawings and sensitive owner are not subject to paragraph (f) of report to the Administrator every 2 detailed material specifications, may not this section when offered for resale. years following issuance of a certificate be claimed as CBI. of compliance for each model line. This § 60.5491 What records must I keep and report must include the sales for each § 60.5492 What activities are prohibited what reports must I submit? model by state and certify that no under this subpart? (a) Each manufacturer who holds a changes in the design or manufacture of (a) No person is permitted to operate certificate of compliance pursuant to the model line have been made that an affected masonry heater § 60.5487(a)(2) for a model line must require recertification pursuant to manufactured after [EFFECTIVE DATE maintain records containing the § 60.5487(d). OF FINAL RULE] or sold at retail after information required by this paragraph (2) If the manufacturer qualifies as a [6 MONTHS AFTER EFFECTIVE DATE (a) with respect to that model line. small manufacturer as defined in OF FINAL RULE] that does not have (1) All documentation pertaining to § 60.5486(b)(2) and the model line was affixed to it a permanent label pursuant the certification test or computer certified using the procedure defined in to § 60.5490. simulation used to obtain certification. paragraph (a)(3) of this section, the (b)(1) No manufacturer or commercial (i) For certification tests, this includes reporting provision of paragraph (d)(1) owner is permitted to advertise for sale, the full test report and raw data sheets, of this section does not apply. offer for sale, or sell an affected masonry (e)(1) Unless otherwise specified, all laboratory technician notes, heater manufactured after [EFFECTIVE records required under this section must calculations, and the test results for all DATE OF FINAL RULE] or sold at retail be maintained by the manufacturer, test runs. after [6 MONTHS AFTER EFFECTIVE commercial owner of the affected (ii) For computer simulations, this DATE OF FINAL RULE] that does not masonry heater, accredited test includes all data input into the have affixed to it a permanent label laboratory or certifying entity for a simulation program and all computer- pursuant to § 60.5490. generated output. period of no less than 5 years. (2) Results of the quality assurance (2) Unless otherwise specified, all (2) No manufacturer or commercial program inspections required pursuant reports to the Administrator required owner is permitted to advertise for sale, to § 60.5487(f). under this subpart must be made to: offer for sale, or sell an affected masonry (3) For emissions tests conducted Wood Heater NSPS Compliance heater manufactured after [EFFECTIVE pursuant to the quality assurance Program at www.epa.gov/Wood_Heater_ DATE OF FINAL RULE] or sold at retail program required by § 60.5487(f), all test NSPS_Compliance_Program. after [6 MONTHS AFTER EFFECTIVE reports, data sheets, laboratory (f) Within 60 days after the date of DATE OF FINAL RULE] labeled under technician notes, calculations, and test completing each performance test, each § 60.5490(d)(1) except for export. results for all test runs, the remedial manufacturer or accredited test (c)(1) No commercial owner is actions taken, if any, and any follow-up laboratory or certifying entity must permitted to advertise for sale, offer for actions such as additional testing. submit performance test data, except sale or sell an affected masonry heater (4) If a masonry heater manufacturer opacity data, electronically to the EPA’s permanently labeled under § 60.5490(b) qualifies as a small volume Central Data Exchange (CDX) by using unless: manufacturer as specified in the Electronic Reporting Tool (ERT) (i) The affected appliance regulated § 60.5486(a)(2) and elects to defer (http://www.epa.gov/ttn/chief/ert/ under this subpart was previously compliance as allowed by that index.html). Only data collected using owned and operated by a paragraph, records of the number of test methods compatible with ERT are noncommercial owner; masonry heaters produced or subject to this requirement to be (ii) The commercial owner provides constructed per year during the deferral submitted electronically to the EPA’s any purchaser or transferee with an period. CDX. Manufacturers may submit owner’s manual that meets the (b) Each accredited test laboratory compliance reports to the EPA via requirements of § 60.5490(g), a copy of must maintain records consisting of all regular mail at the address listed below the warranty and a moisture meter. documentation pertaining to each if the test methods they use are not (2) A commercial owner other than a certification test, audit test, or computer compatible with ERT or if ERT is not manufacturer complies with the simulation, including the full test report available to accept reports at the time requirements of paragraph (c) of this and raw data sheets, laboratory the final rule is published. Owners or section if the commercial owner:

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(i) Receives the required manufacturer may submit to the EPA a and EPA Reference Method 5H documentation from the manufacturer Petition for Review request under this ‘‘Determination of Particulate Emissions or a previous commercial owner; and section pursuant to the procedures From Wood Heaters From a Stack Location’’ (ii) Provides that documentation specified in § 60.5493 with the time shall be the same as in Method 28. unaltered to any person to whom the limits set out in § 60.533(p)(4). 2.1.4 Manufacturers shall not specify a smaller volume of the firebox for testing than residential masonry heater that it covers § 60.5494 Who implements and enforces the full usable firebox. is sold or transferred. 2.1.5 The test fuel moisture content, fuel (d)(1) In any case in which the this subpart? (a) In delegating implementation and load, and coal bed depth shall be as follows: Administrator revokes a certificate of (a) The fuel load dry-basis moisture compliance either for the knowing enforcement authority to a state under content shall be within a range of 22.5 submission of false or inaccurate section 111(c) of the Clean Air Act, the percent +/¥ 1 percent; information or other fraudulent acts, or authorities contained in paragraph (b) of (b) The fuel load weight shall be 7 lb/ft3 based on a finding under this section must be retained by the +/¥ 1 percent (or 7 lb +/¥0.07 lb) of the fuel § 60.5487(e)(1)(ii) that the certification Administrator and not transferred to a load weight, calculated in accordance with test was not valid, the Administrator state. Method 28; and may give notice of that revocation and (b) Authorities that must not be (c) The range for the test-initiation coal-bed delegated to states: weight shall be 22 percent +/¥ 1 percent of the grounds for it to all commercial the fuel load weight. owners. (1) Section 60.5473, Definitions; (2) Section 60.5475, Compliance and (2) On and after the date of receipt of Test Method 28 WHH for Measurement of certification; the notice given under paragraph (d)(1) Particulate Emissions and Heating Efficiency (3) Section 60.5476, Test methods and of this section, no commercial owner is of Wood-Fired Hydronic Heating Appliances procedures; and permitted to sell any residential (4) Section 60.5477, Laboratory 1.0 Scope and Application masonry heater covered by the revoked accreditation. 1.1 This test method applies to wood-fired certificate (other than to the hydronic heating appliances. The units manufacturer) unless the model line has § 60.5495 What parts of the General typically transfer heat through circulation of been recertified in accordance with this Provisions do not apply to me? a liquid heat exchange media such as water subpart. The following provisions of subpart A or a water-antifreeze mixture. (e) No person is permitted to install or of part 60 do not apply to this subpart: 1.2 The test method measures particulate operate an affected masonry heater (a) Section 60.7; emissions and delivered heating efficiency at except in a manner consistent with the (b) Section 60.8(a), (c), (d), (e), and (f); specified heat output rates based on the instructions on its permanent label and and appliance’s rated heating capacity. (c) Section 60.15(d). 1.3 Particulate emissions are measured by in the owner’s manual pursuant to the dilution tunnel method as specified in § 60.5490(g), including only using fuels 6. Part 60 Appendix A–8 is amended ASTM E2515–10 Standard Test Method for for which the unit is certified. by adding Methods 28R, 28WHH, and Determination of Particulate Matter (f) No person is permitted to operate 28WHH–PTS to follow Method 28A to Emissions Collected in a Dilution Tunnel. an affected masonry heater that has been read as follows: Delivered Efficiency is measured by physically altered to exceed the determining the heat output through Appendix A–8 to Part 60—Test measurement of the flow rate and tolerance limits of its certificate of Methods 26 through 30B compliance. temperature change of water circulated through a heat exchanger external to the (g) No person is permitted to alter, * * * * * deface, or remove any permanent label appliance and determining the input from the mass of dry wood fuel and its higher required to be affixed pursuant to Test Method 28R for Certification and Auditing of Wood Heaters heating value. Delivered efficiency does not § 60.5490. attempt to account for pipeline loss. (h) No certifying entity is permitted to 1.0 Scope and Application 1.4 Products covered by this test method certify its own certification test report. 1.1 This test method applies to certification include both pressurized and non- and auditing of wood-fired room heaters and pressurized heating appliances intended to § 60.5493 What Petition for Review fireplace inserts. be fired with wood. These products are procedures apply to me? 1.2 The test method covers the fueling and wood-fired hydronic heating appliances that (a) In any case where the operating protocol for measuring particulate the manufacturer specifies for indoor or Administrator: emissions, as well as determining burn rates, outdoor installation. They are often (1) Denies an application under heat output and efficiency. connected to a heat exchanger by insulated § 60.5487(a)(2); 1.3 Particulate emissions are measured by pipes and normally include a pump to (2) Issues a notice of revocation of the dilution tunnel method as specified in circulate heated liquid. They are used to heat certification under § 60.5487(e); ASTM E2515–10 Standard Test Method for structures such as homes, barns and (3) Denies an application for Determination of Particulate Matter greenhouses and can heat domestic hot Emissions Collected in a Dilution Tunnel. water, spas or swimming pools. laboratory accreditation pursuant to 1.5 Distinguishing features of products § 60.5489; or 2.0 Procedures covered by this standard include: (4) Issues a notice of revocation of 2.1 This method incorporates the 1.5.1 Manufacturer specifies for indoor or laboratory accreditation pursuant to provisions of ASTM E2780–10 except as outdoor installation. § 60.5489, the manufacturer or follows: 1.5.2 A firebox with an access door for laboratory affected may submit to the 2.1.1 The burn rate categories, low burn hand loading of fuel. EPA a Petition for Review request under rate requirement, and weightings in Method 1.5.3 Typically an aquastat that controls this section pursuant to the procedures 28 shall be used. combustion air supply to maintain the liquid specified in § 60.593 within 30 days 2.1.2 The startup procedures shall be the in the appliance within a predetermined same as in Method 28. temperature range provided sufficient fuel is following receipt of the required 2.1.3 The equation for converting the available in the firebox. notification of the action in question. emission test values between the EPA 1.5.4 A chimney or vent that exhausts (b) In any case where the Reference Method 5G ‘‘Determination of combustion products from the appliance. Administrator issues a notice of Particulate Emissions From Wood Heaters 1.6 The values stated are to be regarded as revocation under § 60.5487(e), the From a Dilution Tunnel Sampling Location’’ the standard whether in I–P or SI units. The

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values given in parentheses are for 3.1.13 Thermopile—A device consisting often required for the purpose of determining information only. of a number of thermocouples connected in compliance with regulations and statutes. series, used for measuring differential 5.1.2 The measurements made before and 2.0 Summary of Method and References temperature. after design modifications are necessary to 2.1 Particulate matter emissions are demonstrate the effectiveness of design measured from a wood-fired hydronic 4.0 Summary of Test Method changes in reducing emissions and make this heating appliance burning a prepared test 4.1 Dilution Tunnel. Emissions are standard an important tool in manufacturers’ fuel crib in a test facility maintained at a set determined using the ‘‘dilution tunnel’’ research and development programs. of prescribed conditions. Procedures for method specified in ASTM E2515 Standard 5.2 Measurement of heating efficiency determining burn rates, and particulate Test Method for Determination of Particulate provides a uniform basis for comparison of emissions rates and for reducing data are Matter Emissions Collected in a Dilution product performance that is useful to the provided. Tunnel. The flow rate in the dilution tunnel consumer. It is also required to relate 2.2 Referenced Documents is maintained at a constant level throughout emissions produced to the useful heat 2.2.1 EPA Standards the test cycle and accurately measured. production. 2.2.1.1 Method 28 Certification and Samples of the dilution tunnel flow stream 5.3 This is a laboratory method and is not Auditing of Wood Heaters are extracted at a constant flow rate and intended to be fully representative of all 2.2.2 Other Standards drawn through high efficiency filters. The actual field use. It is recognized that users of 2.2.2.1 ASTM E2515–10 Standard Test filters are dried and weighed before and after hand-fired, wood-burning equipment have a Method for Determination of Particulate the test to determine the emissions catch and great deal of influence over the performance Matter Emissions Collected in a Dilution this value is multiplied by the ratio of tunnel of any wood-burning appliance. Some Tunnel. flow to filter flow to determine the total compromises in realism have been made in 2.2.2.2 CAN/CSA–B415.1–2010 particulate emissions produced in the test the interest of providing a reliable and Performance Testing of Solid-Fuel-Burning cycle. repeatable test method. Heating Appliances. 4.2 Efficiency. The efficiency test 6.0 Test Equipment procedure takes advantage of the fact that 3.0 Terminology 6.1 Scale. A platform scale capable of this type of appliance delivers heat through 3.1 Definitions weighing the appliance under test and circulation of the heated liquid (water) from associated parts and accessories when 3.1.1 Hydronic Heating—A heating the appliance to a remote heat exchanger and completely filled with water to an accuracy system in which a heat source supplies back to the appliance. Measurements of the ± ± energy to a liquid heat exchange media such of 1.0 pound ( 0.5 kg). water temperature difference as it enters and 6.2 Heat exchanger. A water-to-water heat as water that is circulated to a heating load exits the heat exchanger along with the and returned to the heat source through exchanger capable of dissipating the measured flow rate allow for an accurate expected heat output from the system under pipes. determination of the useful heat output of the 3.1.2 Aquastat—A control device that test. appliance. The input is determined by weight 6.3 Water Temperature Difference opens or closes a circuit to control the rate of the test fuel charge, adjusted for moisture of fuel consumption in response to the Measurement. A Type–T ‘special limits’ content, multiplied by the Higher Heating thermopile with a minimum of 5 pairs of temperature of the heating media in the Value. Additional measurements of the heating appliance. junctions shall be used to measure the appliance weight and temperature at the temperature difference in water entering and 3.1.3 Delivered Efficiency—The beginning and end of a test cycle are used to percentage of heat available in a test fuel leaving the heat exchanger. The temperature correct for heat stored in the appliance. difference measurement uncertainty of this charge that is delivered to a simulated Overall Efficiency (SLM) is determined using ± heating load as specified in this test method. type of thermopile is equal to or less than the CSA B415.1–2010 stack loss method for 0.05 °F (± 0.25 °C). Other temperature 3.1.4 Manufacturer’s Rated Heat Output data quality assurance purposes. Capacity—The value in BTU/hr (MJ/hr) that measurement methods may be used if the 4.3 Operation. Appliance operation is the manufacturer specifies that a particular temperature difference measurement conducted on a hot-to-hot test cycle meaning ± ° model of hydronic heating appliance is uncertainty is equal to or less than. 0.50 F that the appliance is brought to operating ± ° capable of supplying at its design capacity as ( 0.25 C). temperature and a coal bed is established verified by testing, in accordance with 6.4 Water flow meter. A water flow meter Section 13. prior to the addition of the test fuel charge shall be installed in the inlet to the load side 3.1.5 Burn rate—The rate at which test and measurements are made for each test fuel of the heat exchanger. The flow meter shall fuel is consumed in an appliance. Measured charge cycle. The measurements are made have an accuracy of ± 1 percent of measured in pounds (lbs) of wood (dry basis) per hour under constant heat draw conditions within flow. (kg/hr). predetermined ranges. No attempt is made to 6.4.1 Optional—Appliance side water 3.1.6 Firebox—The chamber in the modulate the heat demand to simulate an flow meter. A water flow meter with an appliance in which the test fuel charge is indoor thermostat cycling on and off in accuracy of ± 1 percent of the flow rate is placed and combusted. response to changes in the indoor recommended to monitor supply side water 3.1.7 Test fuel charge—The collection of environment. Four test categories are used. flow rate. Test Fuel layers placed in the appliance at These are: 6.5 Optional Recirculation Pump. the start of the emission test run. 4.3.1 Category I: A heat output of 15 Circulating pump used during test to prevent 3.1.8 Test Fuel Layer—Horizontal percent or less of Manufacturer’s Rated Heat stratification of liquid being heated. arrangement of Test Fuel Units. Output Capacity. 6.6 Water Temperature Measurement— 3.1.9 Test Fuel Unit—One or more Test 4.3.2 Category II: A heat output of 16 Thermocouples or other temperature sensors Fuel Pieces with 3⁄4 inch (19 mm) spacers percent to 24 percent of Manufacturer’s Rated to measure the water temperature at the inlet attached to the bottom and to one side. If Heat Output Capacity. and outlet of the load side of the heat composed of multiple Test Fuel Pieces, the 4.3.3 Category III: A heat output of 25 exchanger. Must meet the calibration bottom spacer may be one continuous piece. percent to 50 percent of Manufacturer’s Rated requirements specified in 10.1. 3.1.10 Test Fuel Piece—A single 4 x 4 (4 Heat Output Capacity. 6.7 Wood Moisture Meter—Calibrated ± 0.25 inches by 4 ± 0.25 inches)[100 ± 6 mm 4.3.4 Category IV: Manufacturer’s Rated electrical resistance meter capable of by 100 ± 6 mm] white or red oak wood piece Heat Output Capacity. measuring test fuel moisture to within 1 cut to the length required. percent moisture content. Must meet the 3.1.11 Test Run—An individual emission 5.0 Significance and Use calibration requirements specified in 10.4. test that encompasses the time required to 5.1 The measurement of particulate 6.8 Flue Gas Temperature consume the mass of the test fuel charge. matter emission rates is an important test Measurement—Must meet the requirements 3.1.12 Overall Efficiency (SLM)—The method widely used in the practice of air of CSA B415.1–2010, Clause 6.2.2. efficiency for each test run as determined pollution control. 6.9 Test Room Temperature using the CSA B415.1–2010 Stack Loss 5.1.1 These measurements, when Measurement—Must meet the requirements Method. approved by state or federal agencies, are of CSA B415.1–2010, Clause 6.2.1.

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6.10 Flue Gas Composition 9.5.3 Install a thermopile meeting the of 10 hours using a medium heat draw rate. Measurement—Must meet the requirements requirements of 6.3 to measure the water Catalytic units shall be operated for a of CSA B415.1–2010, Clauses 6.3.1 through temperature difference between the inlet and minimum of 50 hours using a medium heat 6.3.3. outlet of the load side of the heat exchanger. draw rate. The pre-burn for the first test can 9.5.4 Install a calibrated water flow meter be included as part of the conditioning 7.0 Safety in the heat exchanger load side supply line. requirement. If conditioning is included in 7.1 These tests involve combustion of The water flow meter is to be installed on the pre-burn, then the appliance shall be aged wood fuel and substantial release of heat and cooling water inlet side of the heat exchanger with fuel meeting the specifications outlined products of combustion. The heating system so that it will operate at the temperature at in sections 12.2 with a moisture content also produces large quantities of very hot which it is calibrated. between 19 and 25 percent on a dry basis. water and the potential for steam production 9.5.5 Place the heat exchanger in a box Operate the appliance at a medium burn rate and system pressurization. Appropriate with 2 in. (50 mm) of expanded polystyrene (Category II or III) for at least 10 hours for precautions must be taken to protect (EPS) foam insulation surrounding it to noncatalytic appliances and 50 hours for personnel from burn hazards and respiration minimize heat losses from the heat catalytic appliances. Record and report of products of combustion. exchanger. hourly flue gas exit temperature data and the 8.0 Sampling, Test Specimens and Test 9.5.6 The reported efficiency and heat hours of operation. The aging procedure shall Appliances output rate shall be based on measurements be conducted and documented by a testing made on the load side of the heat exchanger. laboratory. 8.1 Test specimens shall be supplied as 9.5.7 Temperature instrumentation per complete appliances including all controls 12.0 Procedure 6.6 shall be installed in the appliance outlet and accessories necessary for installation in and return lines. The average of the outlet 12.1 Appliance Installation. Assemble the the test facility. A full set of specifications and return water temperature on the supply appliance and parts in conformance with the and design and assembly drawings shall be side of the system shall be considered the manufacturer’s written installation provided when the product is to be placed average appliance temperature for calculation instructions. Clean the flue with an under certification of a third-party agency. of heat storage in the appliance (TFavg and appropriately sized, wire chimney brush The manufacturer’s written installation and before each certification test series. operating instructions are to be used as a TIavg). Installation of a water flow meter in the supply side of the system is optional. 12.2 Fuel. Test fuel charge fuel shall be guide in the set-up and testing of the red (Quercus ruba L.) or white (Quercus alba) appliance. 9.6 Fill the system with water. Determine the total weight of the water in the appliance oak 19 to 25 percent moisture content on a 9.0 Preparation of Test Equipment when the water is circulating. Verify that the dry basis. Piece length shall be 80 percent of the firebox depth rounded down to the 9.1 The appliance is to be placed on a scale indicates a stable weight under nearest 1 inch (25mm) increment. For scale capable of weighing the appliance fully operating conditions. Make sure air is purged example, if the firebox depth is 46 inches loaded with a resolution of ± 1.0 lb (0.5 kg). properly. (1168mm) the 4 × 4 piece length would be 9.2 The appliance shall be fitted with the 10.0 Calibration and Standardization 36 inches (46 inches × 0.8 = 36.8 inches type of chimney recommended or provided by the manufacturer and extending to 15 ± 10.1 Water Temperature Sensors. round down to 36 inches). Pieces are to be 0.5 feet (4.6 ± 0.15 m) from the upper surface Temperature measuring equipment shall be placed in the firebox parallel to the longest of the scale. If no flue or chimney system is calibrated before initial use and at least semi- firebox dimension. For fireboxes with sloped recommended or provided by the annually thereafter. Calibrations shall be in surfaces that create a non-uniform firebox manufacturer, connect the appliance to a flue compliance with National Institute of length, the piece length shall be adjusted for of a diameter equal to the flue outlet of the Standards and Technology (NIST) each layer based on 80 percent of the length appliance. The flue section from the Monograph 175, Standard Limits of at the level where the layer is placed. Pieces 3 appliance flue collar to 8 ± 0.5 feet above the Error.10.2 Heat Exchanger Load Side Water are to be spaced ⁄4 inches (19 mm) apart on scale shall be single wall stove pipe and the Flow Meter. all faces. The first fuel layer may be remainder of the flue shall be double wall 10.2.1 The heat exchanger load side water assembled using fuel units consisting of × insulated class A chimney. flow meter shall be calibrated within the flow multiple 4 4s consisting of single pieces 9.3 Optional Equipment Use range used for the test run using NIST with bottom and side spacers of 3 or more 9.3.1 A recirculation pump may be Traceable methods. Verify the calibration of pieces if needed for a stable layer. The installed between connections at the top and the water flow meter before and after each second layer may consist of fuel units bottom of the appliance to minimize thermal test run and at least once during each test run consisting of no more than two pieces with stratification if specified by the by comparing the water flow rate indicated spacers attached on the bottom and side. The manufacturer. The pump shall not be by the flow meter to the mass of water top two layers of the fuel charge must consist installed in such a way as to change or affect collected from the outlet of the heat of single pieces unless the fuel charge is only the flow rate between the appliance and the exchanger over a timed interval. Volume of three layers. In that instance only the top heat exchanger. the collected water shall be determined based layer must consist of single units. Three- 9.3.2 If the manufacturer specifies that a on the water density calculated from section quarter inch (19 mm) by 1.5 inch (38 mm) thermal control valve or other device be 13, Eq. 8, using the water temperature spacers shall be attached to the bottom of installed and set to control the return water measured at the flow meter. The uncertainty piece to maintain a 3⁄4 inch (19 mm) temperature to a specific set point, the valve in the verification procedure used shall be 1 separation. When a layer consists of two or or other device shall be installed and set per percent or less. The water flow rate more units of 4 × 4s an additional 3⁄4 inch the manufacturer’s written instructions. determined by the collection and weighing (19 mm) thick by 1.5 inch (38 mm) wide 9.4 Prior to filling the tank, weigh and method shall be within 1 percent of the flow spacer shall be attached to the vertical face record the appliance mass. rate indicated by the water flow meter. of each end of one 4 × 4, such that the 3⁄4 9.5 Heat Exchanger 10.3 Scales. The scales used to weigh the inch (19 mm) space will be maintained when 9.5.1 Plumb the unit to a water-to-water appliance and test fuel charge shall be two 4 × 4 units or pieces are loaded side by heat exchanger with sufficient capacity to calibrated using NIST Traceable methods at side. In cases where a layer contains an odd draw off heat at the maximum rate least once every 6 months. number of 4 × 4s one piece shall not be anticipated. Route hoses, electrical cables, 10.4 Moisture Meter. The moisture meter attached, but shall have spacers attached in and instrument wires in a manner that does shall be calibrated per the manufacturer’s a manner that will provide for the 3⁄4 inch (19 not influence the weighing accuracy of the instructions and checked before each use. mm) space to be maintained. (See Figure 1). scale as indicated by placing dead weights on 10.5 Flue Gas Analyzers—In accordance Spacers shall be attached perpendicular to the platform and verifying the scale’s with CSA B415.1–2010, Clause 6.8. the length of the 4 × 4s such that the edge accuracy. of the spacer is 1 ± 0.25 inch from the end 9.5.2 Locate thermocouples to measure 11.0 Conditioning of the 4 × 4s in the previous layers. Spacers the water temperature at the inlet and outlet 11.1 Prior to testing, the noncatalytic shall be red or white oak and will be attached of the load side of the heat exchanger. appliance is to be operated for a minimum with either nails (non-galvanized), brads or

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oak dowels. The use of kiln-dried wood is remove all unburned fuel, zero the scale and 12.5.1.1 Record all water temperatures, not allowed. verify the scales accuracy using dead differential water temperatures and water 12.2.1 Using a fuel moisture meter as weights. flow rates at time intervals of one minute or specified in 6.7 of the test method, determine 12.4.1 Pre-Test Burn Cycle. Reload less. the fuel moisture for each test fuel piece used appliance with oak wood and allow it to burn 12.5.1.2 Record particulate emissions for the test fuel load by averaging at least five down to the specified coal bed weight. The data per the requirements of ASTM E2515. fuel moisture meter readings measured Pre-Test burn cycle fuel charge weight shall 12.5.1.3 Record data needed to determine parallel to the wood grain. Penetration of the be within ±10 percent of the test fuel charge Overall Efficiency (SLM) per the moisture meter insulated electrodes for all weight. Piece size and length shall be requirements of CSA B415.1–2010 Clauses readings shall be 1⁄4 the thickness of the fuel selected such that charcoalization is achieved 6.2.1, 6.2.2, 6.3, 8.5.7, 10.4.3(a), 10.4.3(f), and piece or 19 mm (3⁄4 in.), whichever is lesser. by the time the fuel charge has burned down 13.7.9.3. One measurement from each of three sides to the required coal bed weight. Pieces with 12.5.1.3.1 Measure and record the test shall be made at approximately 3 inches from a maximum thickness of approximately 2 room air temperature in accordance with the each end and the center. Two additional inches have been found to be suitable. requirements of Clauses 6.2.1, 8.5.7 and measurements shall be made centered Charcoalization is a general condition of the 10.4.3(g). between the other three locations. Each test fuel bed evidenced by an absence of large 12.5.1.3.2 Measure and record the flue individual moisture content reading shall be pieces of burning wood in the coal bed and gas temperature in accordance with the in the range of 18 to 28 percent on a dry the remaining fuel pieces being brittle requirements of Clauses 6.2.2, 8.5.7 and basis. The average moisture content of each enough to be broken into smaller charcoal 10.4.3(f). piece of test fuel shall be in the range of 19 pieces with a metal poker. Manipulations to 12.5.1.3.3 Determine and record the to 25 percent. It is not required to measure the fuel bed prior to the start of the test run Carbon Monoxide (CO) and Carbon Dioxide the moisture content of the spacers. Moisture are to be done to achieve charcoalization (CO2) concentrations in the flue gas in shall not be added to previously dried fuel while maintaining the desired heat output accordance with Clauses 6.3, 8.5.7 and pieces except by storage under high humidity rate. During the pre-test burn cycle and at 10.4.3(i) and (j). conditions and temperature up to 100 °F. least one hour prior to starting the test run, 12.5.1.3.4 Measure and record the test Fuel moisture shall be measured within four adjust water flow to the heat exchanger to fuel weight per the requirements of Clauses hours of using the fuel for a test. establish the target heat draw for the test. For 8.5.7 and 10.4.3(h). 12.2.2 Firebox Volume. Determine the the first test run the heat draw rate shall be 12.5.1.3.5 Record the test run time per the firebox volume in cubic feet. Firebox volume equal to the manufacturer’s rated heat output requirements of Clause 10.4.3(a). shall include all areas accessible through the capacity. 12.5.1.4 Monitor the average heat output fuel loading door where firewood could 12.4.1.1 Allowable Adjustments. Fuel rate on the load side of the heat exchanger. reasonably be placed up to the horizontal addition or subtractions, and coal bed raking If the heat output rate gets close to the upper plane defined by the top of the loading door. shall be kept to a minimum but are allowed or lower limit of the target range (±5 percent) A drawing of the firebox showing front, side up to 15 minutes prior to the start of the test adjust the water flow through the heat and plan views or an isometric view with run. For the purposes of this method, coal exchanger to compensate. Make changes as interior dimensions shall be provided by the bed raking is the use of a metal tool (poker) infrequently as possible while maintaining manufacturer and verified by the laboratory. to stir coals, break burning fuel into smaller the target heat output rate. The first test run Calculations for firebox volume from pieces, dislodge fuel pieces from positions of shall be conducted at the category IV heat computer aided design (CAD) software poor combustion, and check for the condition output rate to validate that the appliance is programs are acceptable and shall be of charcoalization. Record all adjustments to capable of producing the manufacturer’s included in the test report if used. If the and additions or subtractions of fuel, and any rated heat output capacity. firebox volume is calculated by the other changes to the appliance operations 12.5.2 Test Fuel Charge Adjustment. It is laboratory the firebox drawings and that occur during pretest ignition period. acceptable to adjust the test fuel charge (i.e., calculations shall be included in the test During the 15-minute period prior to the start reposition) once during a test run if more report. of the test run, the wood heater loading door than 60 percent of the initial test fuel charge 12.2.3 Test Fuel charge. Test fuel charges shall not be open more than a total of 1 weight has been consumed and more than 10 shall be determined by multiplying the minute. Coal bed raking is the only minutes have elapsed without a measurable firebox volume by 10 pounds (4.54 kg) per ft 3 adjustment allowed during this period. (1 lb or 0. 5 kg) weight change while the (28L), or a higher load density as 12.4.2 Coal Bed Weight. The appliance is operating control is in the demand mode. recommended by the manufacturer’s printed to be loaded with the test fuel charge when The time used to make this adjustment shall operating instructions, of wood (as used wet the coal bed weight is between 10 percent be less than 60 seconds. weight). Select the number of pieces of and 20 percent of the test fuel charge weight. 12.5.3 Test Run Completion. The test run standard fuel that most nearly match this Coals may be raked as necessary to level the is completed when the remaining weight of target weight. This is the standard fuel charge coal bed but may only be raked and stirred the test fuel charge is 0.0 lb (0.0 kg). End the for all tests. For example, if the firebox once between 15 to 20 minutes prior to the test run when the scale has indicated a test loading area volume is 10 ft 3 (280L) and the addition of the test fuel charge. fuel charge weight of 0.0 lb (0.0 kg) or less firebox depth is 46 inches (1168 mm), test 12.5 Test Runs. For all test runs, the for 30 seconds. fuel charge target is 100 lbs (45 kg) minimum return water temperature to the hydronic 12.5.3.1 At the end of the test run, stop and the piece length is 36 inches (914 mm). heater must be equal to or greater than the particulate sampling train and Overall If 8–4 × 4s, 36 inches long weigh 105 lbs (48 120 °F. Aquastat or other heater output Efficiency (SLM) measurements, and record kg), use 8 pieces for each test fuel charge. All control device settings that are adjustable the run time, and all final measurement test fuel charges will be of the same shall be set using manufacturer values. configuration. specifications, either as factory set or in 12.5.4 Heat Output Capacity Validation. 12.3 Sampling Equipment. Prepare the accordance with the owner’s manual, and The first test run must produce a heat output particulate emission sampling equipment as shall remain the same for all burn categories. rate that is within 10 percent of the defined by ASTM E2515–10 ‘‘Standard Test Complete a test run in each heat output manufacturer’s rated heat output capacity Method For Determination of Particulate rate category, as follows: (Category IV) throughout the test run and an Matter Emissions Collected In a Dilution 12.5.1 Test Run Start. Once the appliance average heat output rate within 5 percent of Tunnel.’’ is operating normally and the pretest coal the manufacturer’s rated heat output 12.4 Appliance Startup. The appliance bed weight has reached the target value per capacity. If the appliance is not capable of shall be fired with wood fuel of any species, 12.4.2, tare the scale and load the full test producing a heat output within these limits, size and moisture content at the laboratories charge into the appliance. Time for loading the manufacturer’s rated heat output capacity discretion to bring it up to operating shall not exceed 5 minutes. The actual is considered not validated and testing is to temperature. Operate the appliance until the weight of the test fuel charge shall be be terminated. In such cases, the tests may water is heated to the upper operating control measured and recorded within 30 minutes be restarted using a lower heat output limit and has cycled at least two times. Then prior to loading. Start all sampling systems. capacity if requested by the manufacturer.

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12.5.5 Additional Test Runs. Using the 12.5.7 Appliance Overheating. Eg/MJ—Emissions rate in grams per mega Manufacturer’s Rated Heat Output Capacity Appliances shall be capable of operating in joule of heat output. as a basis, conduct a test for additional heat all heat output categories without Elb/mmBtu output—Emissions rate in pounds output categories as specified in 4.3. It is not overheating to be rated by this test method. per million Btu’s of heat output. required to run these tests in any particular Appliance overheating occurs when the rate Eg/kg—Emissions factor in grams per order. of heat withdrawal from the appliance is kilogram of dry fuel burned. 12.5.6 Alternative Heat Output Rate for lower than the rate of heat production when Eg/hr—Emissions factor in grams per hour. Category I. If an appliance cannot be operated the unit control is in the idle mode. This HHV—Higher Heating Value of fuel = 8600 in the category I heat output range due to condition results in the water in the Btu/lb (19.990 MJ/kg). stopped combustion, two test runs shall be appliance continuing to increase in LHV—Lower Heating Value of fuel = 7988 temperature well above the upper limit conducted at heat output rates within Btu/lb (18.567 MJ/kg). setting of the operating control. Evidence of Category II. When this is the case, the DT—Temperature difference between water weightings for the weighted averages overheating includes: 1 Hour or more of appliance water temperature increase above entering and exiting the heat exchanger. indicated in Table 2 shall be the average of Q —Total heat output in BTU’s (mega the category I and II weightings and shall be the upper temperature set-point of the out joules). applied to both category II results. operating control, exceeding the temperature Q —Total heat input available in test fuel Appliances that are not capable of operation limit of a safety control device (independent in charge in BTU’s (mega joules). within Category II (<25 percent of maximum) from the operating control), boiling water in cannot be evaluated by this test method. a non-pressurized system or activation of a M—Mass flow rate of water in lb/min (kg/ 12.5.6.1 Stopped Fuel Combustion. pressure or temperature relief valve in a min). Evidence that an appliance cannot be pressurized system. Vi—Volume of water indicated by a operated at a category I heat output rate due 12.6 Additional Test Runs. The testing totalizing flow meter at the ith reading in to stopped fuel combustion shall include laboratory may conduct more than one test gallons (liters). documentation of two or more attempts to run in each of the heat output categories Vf—Volumetric Flow rate of water in heat operate the appliance in burn rate Category specified in section 4.4.1. If more than one exchange system in gallons per minute I and fuel combustion has stopped prior to test run is conducted at a specified heat (liters/min). complete consumption of the test fuel charge. output rate, the results from at least two- Q—Total length of test run in hours Stopped fuel combustion is evidenced when thirds of the test runs in that heat output rate ti—Data sampling interval in minutes. an elapsed time of 60 minutes or more has category shall be used in calculating the hdel—Delivered heating efficiency in occurred without a measurable (1 lb or 0.5 weighted average emission rate (See section percent. 15.1.14). The measurement data and results kg) weight change in the test fuel charge Fi—Weighting factor for heat output while the appliance operating control is in of all test runs shall be reported regardless of category i. (See Tables 2A and 2B) the demand mode. Report the evidence and which values are used in calculating the T1—Temperature of water at the inlet on the reasoning used to determine that a test in weighted average emission rate. the supply side of the heat exchanger. burn rate Category I cannot be achieved. For 13.0 Calculation of Results T2—Temperature of the water at the outlet example, two unsuccessful attempts to on the supply side of the heat exchanger. operate at an output rate of 10 percent of the 13.1 Nomenclature T3–Temperature of water at the inlet to the rated output capacity are not sufficient ET —Total particulate emissions for the full load side of the heat exchanger. evidence that burn rate Category I cannot be test run as determined per ASTM E2515 in TIavg—Average temperature of the achieved. grams. appliance and water at start of the test.

MC—Fuel moisture content in percent dry Csteel—Specific Heat of Steel (0.1 Btu/ Wwat— Weight of water in supply side of basis. lb¥°F). the system in pounds. MCi—Average moisture content of Wfuel—Fuel charge weight in pounds (kg). 13.2 After the test is completed, individual 4 × 4 fuel pieces in percent dry Wi—Weight of individual fuel 4 × 4 pieces determine the particulate emissions ET in basis. in pounds (kg). accordance with ASTM E2515. MCsp—Moisture content of spacers Wsp—Weight of all spacers used in a fuel assumed to be 10 percent dry basis. load in pounds (kg). 13.3 Determine Average Fuel Load Moisture s—Density of water in pounds per gallon. Wapp—Weight of empty appliance in Content Cp—Specific Heat of Water in Btu/lb °¥F. pounds.

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13.5 Determine heat output and Qout = S [Heat output determined for each efficiency. sampling time interval]+ Change in heat 13.5.1 Determine heat output as: stored in the appliance.

Qout = lL: (Cpi • /).7; • kf; • tJJ+ O¥app • CSteel + CpaWwatcl')· (TFavg - TIavg) ,BTU Eq.6

Note: The subscript (i) indicates the parameter value for sampling time interval ti.

Mi = Mass flow rate = gal/min x Density of Water (lb/gal) = lb/min

Mi=Vfi' C;i, lb/min Eq.7

Li (62.56 + ( -.0003413 x T3d + ( -.00006225 X T3i2)) 0.1337, lbs/galEq. 8

Cp 1.0014 + ( -.000003485 X T3i) Btu/lb-OF Eq. 9

Csteel 0.1 Btu/lb-oF

Cpa 1.0014 + (-.000003485 X (TIavg +TFavg)/2) ,Btu/lb-oF Eq. 10

Vfi (Vi-Vi-l)/(ti-ti-l), gal/min Eq. 11

Note: Vi is the total water volume at the end of interval i and Vi-l is the total water volume

at the beginning of the time interval. This calculation is necessary when a totalizing type

water meter is used.

13.5.2 Determine Heat output rate as:

Heat Output Rate Qout/E>, BTUlhr Eq.12

13.5.3 Determine Emission Rates and Emission Factors as:

EgIMJ= ET/(Qoutx 0.001055), g/MJ Eq.13

6 ElblMMBTUoutput= (ET/453.59)/(QoutputX 10- ), Ib/MMBtu Out Eq.14

Eg/kg= ET/(Wfuel/(l+MC/lOO)), g/dry kg Eq, 15

Eglhr= ET/E> ,g/hr Eq. 16

13.5.4 Determine delivered efficiency as:

lldel= (QouJQin) X 100, % Eq. 17

lldelLHV (QouJQinLHV) X 100, % Eq. 18

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13.5.5 Determine hSLM—Overall 13.5.5.1 Whenever the CSA B415.1–2010 the individual tests in the specified heat Efficiency (SLM) using Stack Loss For overall efficiency is found to be lower than output categories. The weighting factors (Fi) determination of the average overall thermal the overall efficiency based on load side are derived from an analysis of ASHRAE Bin efficiency (hSLM) for the test run, use the data measurements, as determined by Eq. 16 of Data which provides details of normal collected over the full test run and the this method, section 14.1.7 of the test report building heating requirements in terms of calculations in accordance with CSA B415.1– must include a discussion of the reasons for percent of design capacity and time in a 2010, Clause 13.7 except for 13.7.2 (e), (f), (g), this result. particular capacity range—or ‘‘bin’’—over the and (h), use the following average fuel 13.6 Weighted Average Emissions and course of a heating season. The values used properties for oak: percent C = 50.0, percent Efficiency in this method represent an average of data H = 6.6, percent O = 43.2, percent Ash = 0.2 13.6.1 Determine the weighted average from several cities located in the northern percent. emission rate and delivered efficiency from United States.

13.7 Average Heat Output (Qout-8hr) and hours intervals being typical. Rating unit’s appropriately sizing units to match the Efficiency ((havg-8hr) for 8 hour burn time. based on an Average Output sustainable over theoretical heat demand of their application. 13.7.1 Units tested under this standard an 8 hour duration will assist consumers in 13.7.2 Calculations: typically require infrequent fuelling, 8 to 12

Where: Category 3 Duration is just below 8 14.1.9 Data and drawings indicating Y1 = Test Duration just above 8 hrs hours, therefore: X2 = 50,000 BTU/hr, the fire box size and location of the fuel Y2 = Test Duration just below 8 hrs hdel2 = 80.1% and Y2 = 6.4 Hrs charge. X1 = Actual Load for duration Y1 Qout-8hr = 26,000 + {(8—8.4) × 14.1.10 Drawings and calculations X2 = Actual Load for duration Y2 [(50,000—26,000)/(6.4—8.4)]} used to determine firebox volume. hdel1 = Average Delivered Efficiency = 30,800 BTU/hr 14.1.11 Information for each test run for duration Y1 havg-8hr = 75.5 + {(8—8.4) × [(80.1— fuel charge including piece size, hdel2 = Average Delivered Efficiency 75.5)/(6.4—8.4)]} = 76.4% moisture content, and weight. for duration Y2 14.1.12 All required data for each 14.0 Report 13.7.2.1 Determine the Test test run shall be provided in Durations and Actual Load for each 14.1.1 The report shall include the spreadsheet format. Formulae used for Category as recorded in Table 1A. following. all calculations shall be accessible for 13.7.2.2 Determine the data point 14.1.2 Name and location of the review. that has the nearest duration greater laboratory conducting the test. 14.1.13 Test run duration for each than 8 hrs. X1 = Actual Load, 14.1.3 A description of the test. Y1 = Test Duration and appliance tested and its condition, date 14.1.14 Calculated results for hdel1 = Average Delivered Efficiency of receipt and dates of tests. delivered efficiency at each burn rate for this data point. 14.1.4 A statement that the test and the weighted average Emissions 13.7.2.3 Determine the data point results apply only to the specific reported as total emissions in grams, that has the nearest duration less than appliance tested. pounds per million Btu of delivered 8 hrs. 14.1.5 A statement that the test heat, grams per mega-joule of delivered X2 = Actual Load, report shall not be reproduced except in heat, grams per kilogram of dry fuel and Y2 = Test Duration and full, without the written approval of the grams per hour. Results shall be laboratory. hdel2 = Average Delivered Efficiency reported for each heat output category for this data point. 14.1.6 A description of the test and the weighted average. 13.7.2.4 Example: procedures and test equipment 14.1.15 Tables 1A, 1B, 1C and 2 including a schematic or other drawing must be used for presentation of results CATEGORY ACTUAL LOAD DURATION showing the location of all required test in test reports. equipment. Also, a description of test 14.1.16 A statement of the estimated [Category Actual Load Duration hdel] fuel sourcing, handling and storage uncertainty of measurement of the practices shall be included. (Btu/Hr) (Hr) (%) emissions and efficiency test results. 14.1.7 Details of deviations from, 14.1.17 Raw data, calibration 1 15,000 ...... 10.2 70.0 additions to or exclusions from the test records, and other relevant 2 26,000 ...... 8.4 75.5 method, and their data quality documentation shall be retained by the 3 50,000 ...... 6.4 80.1 implications on the test results (if any), laboratory for a minimum of 7 years. 4 100,000 ...... 4.7 80.9 as well as information on specific test conditions, such as environmental 15.0 Precision and Bias Category 2 Duration is just above 8 conditions. 15.1 Precision—It is not possible to hours, therefore: X1 = 26,000 BTU/hr, 14.1.8 A list of participants and specify the precision of the procedure in hdel1 = 75.5% and Y1 = 8.4 Hrs observers present for the tests. Draft Test because the appliance

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operation and fueling protocols and the 15.2 Bias—No definitive information material having an accepted reference appliances themselves produce variable can be presented on the bias of the value is available. amounts of emissions and cannot be procedure in Draft Test Method 28 16.0 Keywords used to determine reproducibility or WHH for measuring solid fuel burning repeatability of this measurement hydronic heater emissions because no 16.1 Solid fuel, hydronic heating method. appliances, wood-burning hydronic heaters.

Table lA. Data Summary Part A

e VII!liel Meave Q;o QOU! Load % Test Wood Calegory Run No Capacity Target Load Actual load Act load Duration WoodWt Moisture Heal Input Heat Output

.. ' BTUlhr BTUlhr % of max hrs Ib ~{b. DB BTU BTU < 15% of I max 16-24% 11 of max 25-50% Ifl of max Max IV Icapacity

Table lB. Data Summary Part B

T2Min Er E E Eglhf EgIkg 11",,1 I1SLM Load % Min Return Total Pf.1 PM Output PM Output Delivered Slack Loss Cateqory Run No Capacity Water Temp Emissions Based Based PM Rate PM Factor Efficiency Efficienc'l '" < OF ~/D ..... 9 IbMMBTlioul g/MJ g/hr g/l\g % < 15'l't. of I max 16-24% fI of max 25-50% m of max Max IV capacity

Table 1C: Hangtag Information

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Table 2. Year Round Use Weighting

1. Fuel Piece

Test Fuel ~pl!leE~r

Test Fuel Units 2, 3

Test Fuel

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Method 28WHH–PTS A Test Method for 1.5.6 The heating appliances require 3.1.9 Firebox—The chamber in the Certification of Cord Wood-Fired Hydronic external thermal storage and these units will appliance in which the test fuel charge is Heating Appliances With Partial Thermal only be installed as part of a system which placed and combusted. Storage: Measurement of Particulate Matter includes thermal storage. The manufacturer 3.1.10 NIST—National Institute of (PM) and Carbon Monoxide (CO) Emissions specifies the minimum amount of thermal Standards and Technology and Heating Efficiency of Wood-Fired storage required. However, the storage system 3.1.11 Test fuel charge—The collection of Hydronic Heating Appliances With Partial shall be large enough to ensure that the boiler test fuel placed in the appliance at the start Thermal Storage (heater) does not cycle, slumber, or go into of the emission test run. an off-mode when operated in a Category III 3.1.12 Test Run—An individual emission 1.0 Scope and Application load condition (See section 4.3). test which encompasses the time required to 1.1 This test method applies to wood- 1.6 The values stated are to be regarded consume the mass of the test fuel charge. The fired hydronic heating appliances with heat as the standard whether in I–P or SI units. time of the test run also considers the time storage external to the appliance. The units The values given in parentheses are for for the energy to be drawn from the thermal typically transfer heat through circulation of information only. storage. a liquid heat exchange media such as water 3.1.13 Test Run Under ‘‘Cold-to-Cold’’ or a water-antifreeze mixture. Throughout 2.0 Summary of Method and References Condition—under this test condition the test this document, the term ‘‘water’’ will be used 2.1 PM and CO emissions are measured fuel is added into an empty chamber along to denote any of the heat transfer liquids from a wood–fired hydronic heating with kindling and ignition materials (paper). approved for use by the manufacturer. appliance burning a prepared test fuel charge The boiler/heater at the start of this test is 1.2 The test method measures PM and CO in a test facility maintained at a set of typically 125° to 130° F. emissions and delivered heating efficiency at prescribed conditions. Procedures for 3.1.14 Test Run Under ‘‘Hot-to-Hot’’ specified heat output rates referenced against determining heat output rates, PM and CO Condition—under this test condition the test the appliance’s rated heating capacity as emissions, and efficiency and for reducing fuel is added onto a still-burning bed of specified by the manufacturer and verified data are provided. charcoals produced in a pre-burn period. The under this test method. boiler/heater water is near its operating 1.3 PM emissions are measured by the 2.2 Referenced Documents control limit at the start of the test. dilution tunnel method as specified in the 2.2.1 EPA Standards 3.1.15 Overall Efficiency, also known as EPA Method 28 WHH and the standards Stack Loss Efficiency—The efficiency for referenced therein with the exceptions noted 2.2.1.1 Method 28 Certification and Auditing of Wood Heaters each test run as determined using the CSA in Section 12.5.9. Delivered Efficiency is B415.1–2010 Stack Loss Method (SLM). measured by determining the fuel energy 2.2.1.2 Method 28 WHH Measurement of 3.1.16 Phases of a Burn Cycle. The input and appliance output. Heat output is Particulate Emissions and Heating Efficiency ‘‘startup phase’’ is defined as the period from determined through measurement of the flow of Wood-Fired Hydronic Heating Appliances the start of the test until 15 percent of the test rate and temperature change of water and the standards referenced therein. fuel charge is consumed. The ‘‘steady state circulated through a heat exchanger external 2.2.2 Other Standards to the appliance and the increase in energy 2.2.2.1 CAN/CSA–B415.1–2010 phase’’ is defined as the period from the end of the external storage. Heat input is Performance Testing of Solid-Fuel-Burning of the startup phase to a point at which 80 determined from the mass of dry wood fuel Heating Appliances percent of the test fuel charge is consumed. and its higher heating value (HHV). Delivered The ‘‘end phase’’ is defined as the time from 3.0 Terminology efficiency does not attempt to account for the end of the steady state period to the end pipeline loss. 3.1 Definitions of the test. 3.1.17 Thermopile—A device consisting 1.4 Products covered by this test method 3.1.1 Hydronic Heating—A heating include both pressurized and non- of a number of thermocouples connected in system in which a heat source supplies pressurized hydronic heating appliances series, used for measuring differential energy to a liquid heat exchange media such intended to be fired with wood and for which temperature. as water that is circulated to a heating load the manufacturer specifies for indoor or 3.1.18 Slumber Mode—This is a mode in and returned to the heat source through outdoor installation. The system, which which the temperature of the water in the includes the heating appliance and external pipes. boiler/heater has exceeded the operating storage, is commonly connected to a heat 3.1.2 Aquastat—A control device that control limit and the control has changed the exchanger by insulated pipes and normally opens or closes a circuit to control the rate boiler/heater fan speed, dampers, and/or includes a pump to circulate heated liquid. of fuel consumption in response to the other operating parameters to minimize the These systems are used to heat structures temperature of the heating media in the heat output of the boiler/heater. heating appliance. such as homes, barns and greenhouses. They 4.0 Summary of Test Method also provide heat for domestic hot water, 3.1.3 Delivered Efficiency—The spas and swimming pools. percentage of heat available in a test fuel 4.1 Dilution Tunnel. Emissions are 1.5 Distinguishing features of products charge that is delivered to a simulated determined using the ‘‘dilution tunnel’’ covered by this standard include: heating load or the storage system as method specified in EPA Method 28 WHH 1.5.1 The manufacturer specifies the specified in this test method. and the standards referenced therein. The application for either indoor or outdoor 3.1.4 Emission factor—the emission of a flow rate in the dilution tunnel is maintained installation. pollutant expressed in mass per unit of at a constant level throughout the test cycle 1.5.2 A firebox with an access door for energy (typically) output from the boiler/ and accurately measured. Samples of the hand loading of fuel. heater dilution tunnel flow stream are extracted at 1.5.3 Typically an aquastat mounted as 3.1.5 Emission index—the emission of a a constant flow rate and drawn through high part of the appliance that controls pollutant expressed in mass per unit mass of efficiency filters. The filters are dried and combustion air supply to maintain the liquid fuel used weighed before and after the test to in the appliance within a predetermined 3.1.6 Emission rate—the emission of a determine the emissions collected and this temperature range provided sufficient fuel is pollutant expressed in mass per unit time value is multiplied by the ratio of tunnel flow available in the firebox. The appliance may 3.1.7 Manufacturer’s Rated Heat Output to filter flow to determine the total be equipped with other devices to control Capacity ¥The value in Btu/hr (MJ/hr) that particulate emissions produced in the test combustion. the manufacturer specifies that a particular cycle. 1.5.4 A chimney or vent that exhausts model of hydronic heating appliance is 4.2 Efficiency. The efficiency test combustion products from the appliance. capable of supplying at its design capacity as procedure takes advantage of the fact that 1.5.5 A liquid storage system, typically verified by testing, in accordance with this type of system delivers heat through water, which is not large enough to accept all section 12.5.4. circulation of the heated liquid (water) from of the heat produced when a full load of 3.1.8 Heat output rate—The average rate the system to a remote heat exchanger (e.g. wood is burned and the storage system starts of energy output from the appliance during baseboard radiators in a room) and back to a burn cycle at 125 °F. a specific test period in Btu/hr (MJ/hr) the system. Measurements of the cooling

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water temperature difference as it enters and often required for the purpose of determining 6.7 Lab Scale—For measuring the exits the test system heat exchanger along compliance with regulations and statutes. moisture content of wood slices as part of the with the measured flow rate allow for an 5.1.2 The measurements made before and overall wood moisture determination. accurate determination of the useful heat after design modifications are necessary to Accuracy of ± 0.01 pounds. output of the appliance. Also included in the demonstrate the effectiveness of design 6.8 Flue Gas Temperature heat output is the change in the energy changes in reducing emissions and make this Measurement—Must meet the requirements content in the storage system during a test standard an important tool in manufacturer’s of CSA B415.1–2010, Clause 6.2.2. run. Energy input to the appliance during the research and development programs. 6.9 Test Room Temperature test run is determined by weight of the test 5.2 Measurement of heating efficiency Measurement—Must meet the requirements fuel charge, adjusted for moisture content, provides a uniform basis for comparison of of CSA B415.1–2010, Clause 6.2.1. multiplied by the Higher Heating Value. product performance that is useful to the 6.10 Flue Gas Composition Additional measurements of the appliance consumer. It is also required to relate Measurement—Must meet the requirements weight and temperature at the beginning and emissions produced to the useful heat of CSA B415.1–2010, Clauses 6.3.1 through end of a test cycle are used to correct for heat production. 6.3.3. stored in the appliance. Overall Efficiency 5.3 This is a laboratory method and is not 6.11 Dilution Tunnel CO Measurement— (SLM) is determined using the CSA B415.1– intended to be fully representative of all In parallel with the flue gas composition 2010 stack loss method for data quality actual field use. It is recognized that users of measurements, the CO concentration in the assurance purposes. hand-fired, wood-burning equipment have a dilution tunnel shall also be measured and 4.3 Operation. Four test categories are great deal of influence over the performance reported at time intervals not to exceed one defined for use in this method. These are: of any wood-burning appliance. Some minute. This analyzer shall meet the zero and 4.3.1 Category I: A heat output of 15 compromises in realism have been made in span drift requirements of CSA B415.1–2012. percent or less of Manufacturer’s Rated Heat the interest of providing a reliable and In addition the measurement repeatability Output Capacity. repeatable test method. shall be better than ±15 ppm over the range 4.3.2 Category II: A heat output of 16 6.0 Test Equipment of CO levels observed in the dilution tunnel. percent to 24 percent of Manufacturer’s Rated Heat Output Capacity. 6.1 Scale. A platform scale capable of 7.0 Safety 4.3.3 Category III: A heat output of 25 weighing the boiler/heater under test and 7.1 These tests involve combustion of percent to 50 percent of Manufacturer’s Rated associated parts and accessories when wood fuel and substantial release of heat and Heat Output Capacity. completely filled with water to an accuracy products of combustion. The heating system 4.3.4 Category IV: Manufacturer’s Rated of ± 1.0 pound (± 0.5 kg) and a readout also produces large quantities of very hot Heat Output Capacity. These heat output resolution of ± 0.2 pound (± 0.1 kg). water and the potential for steam production categories refer to the output from the system 6.2 Heat Exchanger. A water-to-water and system pressurization. Appropriate by way of the load heat exchanger installed heat exchanger capable of dissipating the precautions must be taken to protect for the test. The output from just the boiler/ expected heat output from the system under personnel from burn hazards and respiration heater part of the system may be higher for test. of products of combustion. all or part of a test, as part of this boiler/ 6.3 Water Temperature Difference 8.0 Sampling, Test Specimens and Test heater output goes to storage. Measurement. A Type–T ‘special limits’ Appliances For the Category III and IV runs, appliance thermopile with a minimum of 5 pairs of operation is conducted on a hot-to-hot test junctions shall be used to measure the 8.1 Test specimens shall be supplied as cycle meaning that the appliance is brought temperature difference in water entering and complete appliances, as described in to operating temperature and a coal bed is leaving the heat exchanger. The temperature marketing materials, including all controls established prior to the addition of the test difference measurement uncertainty of this and accessories necessary for installation in fuel charge and measurements are made for type of thermopile is equal to or less than ± the test facility. A full set of specifications, each test fuel charge cycle. The 0.50 °F (± 0.25 °C). Other temperature installation and operating instructions, and measurements are made under constant heat measurement methods may be used if the design and assembly drawings shall be draw conditions within pre-determined temperature difference measurement provided when the product is to be placed ranges. No attempt is made to modulate the uncertainty is equal to or less than under certification of a third-party agency. heat demand to simulate an indoor ± 0.50 °F (± 0.25 °C). This measurement The manufacturer’s written installation and thermostat cycling on and off in response to uncertainty shall include the temperature operating instructions are to be used as a changes in the indoor environment. sensor, sensor well arrangement, piping guide in the set-up and testing of the For the Category I and II runs, the unit is arrangements, lead wire, and measurement/ appliance and shall be part of the test record. tested with a ‘‘cold start.’’ At the recording system. The response time of the 8.2 The size, connection arrangement, manufacturer’s option, the Category II and III temperature measurement system shall be and control arrangement for the thermal runs may be waived and it may be assumed less than half of the time interval at which storage shall be as specified in the that the particulate emission values and temperature measurements are recorded. manufacturer’s documentation. It is not efficiency values determined in the startup, 6.4 Water Flow Meter. A water flow necessary to use the specific storage system steady-state, and end phases of Category I are meter shall be installed in the inlet to the that the boiler/heater will be marketed with. applicable in Categories II and III for the load side of the heat exchanger. The flow However, the capacity of the system used in purpose of determining the annual averages meter shall have an accuracy of ± 1 percent the test cannot be greater than that specified in lb/MMBtu and g/MJ (See section 13). For of measured flow. as the minimum allowable for the boiler/ the annual average in g/hr, the length of time 6.4.1 Optional—Appliance side water heater. for stored heat to be drawn from thermal flow meter. A water flow meter with an 8.3 All system control settings shall be storage shall be determined for the test load accuracy of ± 1 percent of the flow rate is the as-shipped, default settings. These requirements of the respective Category. recommended to monitor supply side water default settings shall be the same as those All test operations and measurements shall flow rate. communicated in a document to the installer be conducted by personnel of the laboratory 6.5 Optional Recirculation Pump. or end user. These control settings and the responsible for the submission of the test Circulating pump used during test to prevent documentation of the control settings as to be report. stratification, in the boiler/heater, of liquid provided to the installer or end user shall be being heated. part of the test record. 5.0 Significance and Use 6.6 Water Temperature Measurement— 8.4 Where the manufacturer defines 5.1 The measurement of particulate Thermocouples or other temperature sensors several alternatives for the connection and matter emission and CO rates is an important to measure the water temperature at the inlet loading arrangement, one shall be defined in test method widely used in the practice of air and outlet of the load side of the heat the appliance documentation as the default pollution control. exchanger must meet the calibration or standard installation. It is expected that 5.1.1 These measurements, when requirements specified in 10.1 of this this will be the configuration for use with a approved by state or federal agencies, are method. simple baseboard heating system. This is the

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configuration to be followed for these tests. 9.5.7 Temperature instrumentation per 11.0 Conditioning The manufacturer’s documentation shall section 6.6 shall be installed in the appliance 11.1 Prior to testing, a non-catalytic define the other arrangements as optional or outlet and return lines. The average of the appliance is to be operated for a minimum alternative arrangements. outlet and return water temperature on the of 10 hours using a medium heat draw rate. supply side of the system shall be considered Catalytic units shall be operated for a 9.0 Preparation of Test Equipment the average appliance temperature for minimum of 50 hours using a medium heat 9.1 The appliance is to be placed on a calculation of heat storage in the appliance draw rate. The pre-burn for the first test can scale capable of weighing the appliance fully (TFavg and TIavg). Installation of a water flow loaded with a resolution of ± 0.2 lb (0.1 kg). meter in the supply side of the system is be included as part of the conditioning 9.2 The appliance shall be fitted with the optional. requirement. If conditioning is included in type of chimney recommended or provided 9.6 Storage Tank. The storage tank shall pre-burn, then the appliance shall be aged by the manufacturer and extending to 15 ± include a destratification pump as illustrated with fuel meeting the specifications outlined 0.5 feet (4.6 ± 0.15 m) from the upper surface in Figure 1. The pump will draw from the in section 12.2 with a moisture content of the scale. If no flue or chimney system is bottom of the tank and return to the top as between 19 and 25 percent on a dry basis. recommended or provided by the illustrated. Temperature sensors (TS1 and Operate the appliance at a medium heat manufacturer, connect the appliance to a flue TS2 in Figure 1) shall be included to measure output rate (Category II or III) for at least 10 of a diameter equal to the flue outlet of the the temperature in the recirculation loop. hours for non-catalytic appliances and 50 appliance. The flue section from the The valve plan in Figure 1 allows the tank hours for catalytic appliances. Record and appliance flue collar to 8 ± 0.5 feet above the recirculation loop to operate and the boiler/ report hourly flue gas exit temperature data scale shall be single wall stove pipe and the heater-to-heat exchanger loop to operate at and the hours of operation. The aging remainder of the flue shall be double wall the same time but in isolation. This would procedure shall be conducted and insulated class A chimney. typically be done before the start of a test or documented by a testing laboratory. 9.3 Optional Equipment Use following completion of a test to determine 9.3.1 A recirculation pump may be the end of test average tank temperature. The 12.0 Procedure installed between connections at the top and nominal flow rate in the storage tank 12.1 Appliance Installation. Assemble the bottom of the appliance to minimize thermal recirculation loop can be estimated based on appliance and parts in conformance with the stratification if specified by the pump manufacturer’s performance curves manufacturer’s written installation manufacturer. The pump shall not be and any significant restriction in the instructions. Clean the flue with an installed in such a way as to change or affect recirculation loop. appropriately sized, wire chimney brush the flow rate between the appliance and the 9.7 Fill the system with water. Determine before each certification test series. heat exchanger. the total weight of the water in the appliance 12.2 Fuel. Test fuel charge fuel shall be 9.3.2 If the manufacturer specifies that a when the water is circulating. Verify that the red (Quercus ruba L.) or white (Quercus thermal control valve or other device be scale indicates a stable weight under Alba) oak 19 to 25 percent moisture content installed and set to control the return water operating conditions. Make sure air is purged on a dry basis. Piece length shall be 80 temperature to a specific set point, the valve properly. percent of the firebox depth rounded down or other device shall be installed and set per to the nearest 1 inch (25mm) increment. For the manufacturer’s written instructions. 10.0 Calibration and Standardization example, if the firebox depth is 46 inches 9.4 Prior to filling the boiler/heater with 10.1 Water Temperature Sensors. (1168mm) the piece length would be 36 water, weigh and record the appliance mass. Temperature measuring equipment shall be inches (46 inches x 0.8 = 36.8 inches round 9.5 Heat Exchanger calibrated before initial use and at least semi- down to 36 inches). Pieces are to be placed 9.5.1 Plumb the unit to a water-to-water annually thereafter. Calibrations shall be in in the firebox parallel to the longest firebox heat exchanger with sufficient capacity to compliance with National Institute of draw off heat at the maximum rate Standards and Technology (NIST) dimension. For fireboxes with sloped anticipated. Route hoses and electrical cables Monograph 175, Standard Limits of Error. surfaces that create a non-uniform firebox and instrument wires in a manner that does 10.2 Heat Exchanger Load Side Water length, the piece length shall be adjusted for not influence the weighing accuracy of the Flow Meter. each layer based on 80 percent of the length scale as indicated by placing dead weights on 10.2.1 The heat exchanger load side water at the level where the layer is placed. The the platform and verifying the scale’s flow meter shall be calibrated within the flow test fuel shall be cord wood with cross accuracy. range used for the test run using NIST- section dimensions and weight limits as 9.5.2 Locate thermocouples to measure traceable methods. Verify the calibration of defined in CSA B415.1–2010, section 8.3, the water temperature at the inlet and outlet the water flow meter before and after each Table 4. The use of dimensional lumber is of the load side of the heat exchanger. test run and at least once during each test run not allowed. 9.5.3 Install a thermopile (or equivalent by comparing the water flow rate indicated 12.2.1 Select three pieces of cord wood instrumentation) meeting the requirements of by the flow meter to the mass of water from the same batch of wood as the test fuel section 6.3 to measure the water temperature collected from the outlet of the heat and the same weight as the average weight difference between the inlet and outlet of the exchanger over a timed interval. Volume of of the pieces in the test load ± 1.0 lb. From load side of the heat exchanger. the collected water shall be determined based each of these three pieces, cut three slices. 9.5.4 Install a calibrated water flow meter on the water density calculated from section Each slice shall be 1⁄2 inch to 3⁄4 inch thick. in the heat exchanger load side supply line. 13, Eq. 12, using the water temperature One slice shall be cut across the center of the The water flow meter is to be installed on the measured at the flow meter. The uncertainty length of the piece. The other two slices shall cooling water inlet side of the heat exchanger in the verification procedure used shall be 1 be cut half way between the center and the so that it will operate at the temperature at percent or less. The water flow rate end. Immediately measure the mass of each which it is calibrated. determined by the collection and weighing piece in pounds. Dry each slice in an oven 9.5.5 Place the heat exchanger in a box method shall be within 1 percent of the flow at 220 °F for 24 hours or until no further with 2 in. (50 mm) of expanded polystyrene rate indicated by the water flow meter. weight change occurs. The slices shall be (EPS) foam insulation surrounding it to 10.3 Scales. The scales used to weigh the arranged in the oven so as to provide minimize heat losses from the heat appliance and test fuel charge shall be separation between faces. Remove from the exchanger. calibrated using NIST-traceable methods at oven and measure the mass of each piece 9.5.6 The reported efficiency and heat least once every 6 months. again as soon as practical in pounds. output rate shall be based on measurements 10.4 Flue Gas Analyzers—In accordance The moisture content of each slice, on a made on the load side of the heat exchanger. with CSA B415.1–2010, Clause 6.8. dry basis shall be calculated as:

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Where: appliance with oak cord wood and allow it be based on the nominal flow rate of the

WSliceWet = weight of the slice before drying to burn down to the specified coal bed destratification pump (See section 9.6). If the in pounds weight. The pre-test burn cycle fuel charge Category III and IV runs are done with ± WSliceDry = weight of the slice after drying in weight shall be within 10 percent of the test storage, it is recognized that during the last pounds fuel charge weight. Piece size and length hour of the pre-burn cycle the storage tank MCSlice = moisture content of the slice in % shall be selected such that charcoalization is must be mixed to achieve a uniform starting dry basis achieved by the time the fuel charge has temperature and cannot receive heat from the burned down to the required coal bed weight. boiler/heater during this time. During this The average moisture content of the entire Pieces with a maximum thickness of time period the boiler/heater might cycle or test load (MC) shall be determined using Eq. approximately 2 inches have been found to go into a steady reduced output mode. 6. Each individual slice shall have a moisture be suitable. Charcoalization is a general (Note—this would happen, for example, in a content in the range of 18 percent to 28 condition of the test fuel bed evidenced by Category IV run if the actual maximum percent on a dry basis. The average moisture an absence of large pieces of burning wood output of the boiler/heater exceed the content for the test fuel load shall be in the in the coal bed and the remaining fuel pieces manufacturer’s rated output.) A second range of 19 percent to 25 percent. Moisture being brittle enough to be broken into smaller storage tank may be used temporarily to shall not be added to previously dried fuel charcoal pieces with a metal poker. enable the boiler/heater to operate during pieces except by storage under high humidity Manipulations to the fuel bed prior to the this last hour of the pre-burn period as it will conditions and temperature up to 100 °F. start of the test run are to be done to achieve during the test period. The temperature of Fuel moisture measurement shall begin charcoalization while maintaining the this second storage tank is not used in the within four hours of using the fuel batch for desired heat output rate. During the pre-test calculations but the return water to the a test. Use of a pin-type meter to estimate the burn cycle and at least one hour prior to boiler/heater (after mixing device if used) moisture content prior to a test is starting the test run, adjust water flow to the must be 125 °F or greater. recommended. heat exchanger to establish the target heat 12.4.2 Startup Procedure for Category I 12.2.2 Firebox Volume. Determine the draw for the test. For the first test run the and II test runs, ‘‘cold-to-cold.’’ firebox volume in cubic feet. Firebox volume heat draw rate shall be equal to the 12.4.2.1 Initial Temperatures. This test shall include all areas accessible through the manufacturer’s rated heat output capacity. shall be started with both the boiler/heater fuel loading door where firewood could 12.4.1.2 Allowable Adjustments. Fuel and the storage at a minimum temperature of reasonably be placed up to the horizontal addition or subtractions, and coal bed raking 125 °F. The boiler/heater maximum plane defined by the top of the loading door. shall be kept to a minimum but are allowed temperature at the start of this test shall be A drawing of the firebox showing front, side up to 15 minutes prior to the start of the test 135 °F. The boiler/heater and storage may be and plan views or an isometric view with run. For the purposes of this method, coal heated through a pre-burn or it may be interior dimensions shall be provided by the bed raking is the use of a metal tool (poker) heated by external means. manufacturer and verified by the laboratory. to stir coals, break burning fuel into smaller 12.4.2.2 Firebox Condition at Test Start. Calculations for firebox volume from pieces, dislodge fuel pieces from positions of Prior to the start of this test remove all ash computer aided design (CAD) software poor combustion, and check for the condition and charcoal from the combustion programs are acceptable and shall be of charcoalization. Record all adjustments to chamber(s). The loading of the test fuel and included in the test report if used. If the and additions or subtractions of fuel, and any kindling should follow the manufacturer’s firebox volume is calculated by the other changes to the appliance operations recommendations, subject to the following laboratory the firebox drawings and that occur during pretest ignition period. constraints: Up to 10 percent kindling and calculations shall be included in the test During the 15-minute period prior to the start paper may be used which is in addition to report. of the test run, the wood heater loading door the fuel load. Further, up to 10 percent of the 12.2.3 Test Fuel charge. Test fuel charges shall not be open more than a total of 1 fuel load (i.e., included in the 10 lb/ft3) may shall be determined by multiplying the minute. Coal bed raking is the only be smaller than the main fuel. This startup firebox volume by 10 pounds (4.54 kg) per ft3 adjustment allowed during this period. fuel shall still be larger than 2 inches. (28L), or a higher load density as 12.4.1.3 Coal Bed Weight. The appliance 12.4.2.3 Storage. The Category I and II recommended by the manufacturer’s printed is to be loaded with the test fuel charge when test runs shall be done with thermal storage. operating instructions, of wood (as used wet the coal bed weight is between 10 percent The initial temperature of the storage must be weight). Select the number of pieces of cord and 20 percent of the test fuel charge weight. 125 °F or greater at the start of the test. The wood that most nearly match this target Coals may be raked as necessary to level the storage may be heated during the pre-test weight. However, the test fuel charge cannot coal bed but may only be raked and stirred burn cycle or it may be heated by external be less than the target of 10 pounds (4.54 kg) once between 15 to 20 minutes prior to the means. Prior to the start of the test run, the per ft3 (28L). addition of the test fuel charge. storage tank destratification pump, shown in 12.3 Sampling Equipment. Prepare the 12.4.1.4 Storage. The Category III and IV Figure 1, shall be operated until the total particulate emission sampling equipment as test runs may be done either with or without volume pumped exceeds 1.5 times the tank defined by EPA Method 28 WHH and the the thermal storage. If thermal storage is used volume and the difference between the standards referenced therein. the initial temperature of the storage must be temperature at the top and bottom of the 12.4 Appliance Startup. The appliance 125 °F or greater at the start of the test. The storage tank (TS1 and TS2) is less than 1 °F. shall be fired with wood fuel of any species, storage may be heated during the pre-test These two temperatures shall then be size and moisture content at the laboratories burn cycle or it may be heated by external recorded to determine the starting average discretion to bring it up to operating means. If thermal storage is used, prior to the tank temperature. The total volume pumped temperature. Operate the appliance until the start of the test run, the storage tank may be based on the nominal flow rate of the water is heated to the upper operating control destratification pump, shown in Figure 1, destratification pump (See section 9.6). limit and has cycled at least two times. Then shall be operated until the total volume 12.5 Test Runs. For all test runs, the remove all unburned fuel, zero the scale and pumped exceeds 1.5 times the tank volume return water temperature to the hydronic verify the scales accuracy using dead and the difference between the temperature heater must be equal to or greater than 120 °F weights. at the top and bottom of the storage tank (TS1 (this is lower than the initial tank 12.4.1 Startup Procedure for Category III and TS2) is less than 1 °F. These two temperature to allow for any pipeline losses). and IV Test Runs, ‘‘Hot-to-Hot’’ temperatures shall then be recorded to Where the storage system is used, flow of 12.4.1.1 Pre-Test Burn Cycle. Following determine the starting average tank water from the boiler/heater shall be divided appliance startup (section 12.4), reload temperature. The total volume pumped may between the storage tank and the heat

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exchanger such that the temperature change possible while maintaining the target heat ash and charcoal. This separated char is of the circulating water across the heat output rate. The first test run shall be assigned a heating value of 12,500 Btu/lb. exchanger shall be 30 ± 5 °F, averaged over conducted at the category IV heat output rate 12.5.4 Heat Output Capacity Validation. the entire test run. This is typically adjusted to validate that the appliance is capable of The first test run must produce a heat output using the system valves. producing the manufacturer’s rated heat rate that is within 10 percent of the Complete a test run in each heat output output capacity. manufacturer’s rated heat output capacity rate category, as follows: 12.5.2 Test Fuel Charge Adjustment. It is (Category IV) throughout the test run and an 12.5.1 Test Run Start. For Category III and acceptable to adjust the test fuel charge (i.e., average heat output rate within 5 percent of IV runs: once the appliance is operating reposition) once during a test run if more the manufacturer’s rated heat output normally and the pretest coal bed weight has than 60 percent of the initial test fuel charge capacity. If the appliance is not capable of reached the target value per 12.4.1, tare the weight has been consumed and more than 10 producing a heat output within these limits, scale and load the full test charge into the minutes have elapsed without a measurable the manufacturer’s rated heat output capacity appliance. Time for loading shall not exceed (1 lb or 0.5 kg) weight change while the is considered not validated and testing is to 5 minutes. The actual weight of the test fuel operating control is in the demand mode. be terminated. In such cases, the tests may charge shall be measured and recorded The time used to make this adjustment shall be restarted using a lower heat output within 30 minutes prior to loading. Start all be less than 60 seconds. capacity if requested by the manufacturer. sampling systems. 12.5.3 Test Run Completion. For the Alternatively, during the Category IV run, if For Category I and II runs: once the Category III and IV, ‘‘hot-to-hot’’ test runs, the rated output cannot be maintained for a appliance has reached the starting the test run is completed when the remaining 15 minute interval, the manufacturer may temperature, tare the scale and load the full weight of the test fuel charge is 0.0 lb (0.0 elect to reduce the rated output to match the test charge, including kindling into the kg). (WFuelBurned = Wfuel) End the test run when test and complete the Category IV run on this appliance. The actual weight of the test fuel the scale has indicated a test fuel charge basis. The target outputs for Cat I, II, and III charge shall be measured and recorded weight of 0.0 lb (0.0 kg) or less for 30 shall then be recalculated based on this within 30 minutes prior to loading. Light the seconds. change in rated output capacity. fire following the manufacturer’s written For the Category I and II ‘‘cold-to-cold’’ test 12.5.5 Additional Test Runs. Using the normal startup procedure. Start all sampling runs, the test run is completed; and the end Manufacturer’s Rated Heat Output Capacity systems. of a test is defined at the first occurrence of as a basis, conduct a test for additional heat 12.5.1.1 Record all water temperatures, any one of the following: output categories as specified in 4.3. It is not differential water temperatures and water (a) The remaining weight of the test fuel required to run these tests in any particular flow rates at time intervals of one minute or charge is less than 1 percent of the total test order. less. fuel weight (WFuelBurned > 0.99 · Wfuel); 12.5.6 Alternative Heat Output Rate for 12.5.1.2 Record particulate emissions (b) The automatic control system on the Category I. If an appliance cannot be operated data per the requirements of EPA Method 28 boiler/heater switches to an off mode. In this in the Category I heat output range due to WHH and the standards referenced therein. case the boiler/heater fan (if used) is typically stopped combustion, two test runs shall be 12.5.1.3 Record data needed to determine stopped, and all air flow dampers are closed conducted at heat output rates within Overall Efficiency (SLM) per the by the control system. Note that this off mode Category II. When this is the case, the requirements of CSA B415.1–2010 Clauses cannot be an ‘‘overheat’’ or emergency weightings for the weighted averages 6.2.1, 6.2.2, 6.3, 8.5.7, 10.4.3 (a), 10.4.3(f), shutdown which typically requires a manual indicated in section 15.1.14 shall be the and 13.7.9.3 reset; or average of the Category I and II weighting’s 12.5.1.3.1 Measure and record the test (c) If the boiler/heater does not have an and shall be applied to both Category II room air temperature in accordance with the automatic off mode: After 90 percent of the results. Appliances that are not capable of requirements of Clauses 6.2.1, 8.5.7 and fuel load has been consumed and the scale operation within Category II (<25 percent of 10.4.3 (g). has indicated a rate of change of the test fuel maximum) cannot be evaluated by this test 12.5.1.3.2 Measure and record the flue charge of less than 1.0 lb/hr for a period of method. gas temperature in accordance with the 10 minutes or longer. Note—this is not 12.5.6.1 Stopped Fuel Combustion. requirements of Clauses 6.2.2, 8.5.7 and considered ‘‘stopped fuel combustion,’’ See Evidence that an appliance cannot be 10.4.3 (f). section 12.5.6.1. operated at a Category I heat output rate due 12.5.1.3.3 Determine and record the 12.5.3.1 At the end of the test run, stop to stopped fuel combustion shall include Carbon Monoxide (CO) and Carbon Dioxide the particulate sampling train and Overall documentation of two or more attempts to (CO2) concentrations in the flue gas in Efficiency (SLM) measurements, and record operate the appliance in heat output rate accordance with Clauses 6.3, 8.5.7 and 10.4.3 the run time, and all final measurement Category I and fuel combustion has stopped (i) and (j). values. prior to complete consumption of the test 12.5.1.3.4 Measure and record the test 12.5.3.2 At the end of the test run, fuel charge. Stopped fuel combustion is fuel weight per the requirements of Clauses continue to operate the storage tank evidenced when an elapsed time of 60 8.5.7 and 10.4.3 (h). destratification pump until the total volume minutes or more has occurred without a 12.5.1.3.5 Record the test run time per the pumped exceeds 1.5 times the tank volume. measurable (1 lb or 0.5 kg) weight change in requirements of Clause 10.4.3 (a). The maximum average of the top and bottom the test fuel charge while the appliance 12.5.1.3.6 Record and document all temperatures measured after this time may be operating control is in the demand mode. settings and adjustments, if any, made to the taken as the average tank temperature at the Report the evidence and the reasoning used boiler/heater as recommended/required by end of the tests (TFSavg, See section 13.1). to determine that a test in heat output rate manufacturer’s instruction manual for The total volume pumped may be based on Category I cannot be achieved. For example, different combustion conditions or heat the nominal flow rate of the destratification two unsuccessful attempts to operate at an loads. These may include temperature pump (See section 9.6). output rate of 10 percent of the rated output setpoints, under and over-fire air adjustment, 12.5.3.3 For the Category I and II test capacity are not sufficient evidence that heat or other adjustments that could be made by runs, there is a need to determine the energy output rate Category I cannot be achieved. an operator to optimize or alter combustion. content of the unburned fuel remaining in 12.5.7 Appliance Overheating. All such settings shall be included in the the chamber if the remaining mass in the Appliances with their associated thermal report for each test run. chamber is greater than 1 percent of the test storage shall be capable of operating in all 12.5.1.4 Monitor the average heat output fuel weight. Following the completion of the heat output categories without overheating to rate on the load side of the heat exchanger test, as soon as safely practical, this be rated by this test method. Appliance based on water temperatures and flow. If the remaining fuel is removed from the chamber, overheating occurs when the rate of heat heat output rate over a 10 minute averaging separated from the remaining ash and withdrawal from the appliance is lower than period gets close to the upper or lower limit weighed. This separation could be the rate of heat production when the unit of the target range (± 5 percent), adjust the implemented with a slotted ‘‘scoop’’ or control is in the idle mode. This condition water flow through the heat exchanger to similar tool. A 1⁄4 inch opening size in the results in the water in the appliance compensate. Make changes as infrequently as separation tool shall be used to separate the continuing to increase in temperature well

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above the upper limit setting of the operating this reason, during cycling operation the Eg/kg—Emissions factor in grams per kilogram control. Evidence of overheating includes: 1 averaging period for these parameters may of dry fuel burned. hour or more of appliance water temperature not be longer than the burner on period Eg/hr—Emission factor in grams per hour. increase above the upper temperature set- divided by 10. The averaging period need not HHV—Higher Heating Value of fuel = 8600 point of the operating control, exceeding the be shorter than one minute. During the off Btu/lb (19.990 MJ/kg). temperature limit of a safety control device period, under cycling operation, averaging LHV—Lower Heating Value of fuel = 7988 (independent from the operating control— periods as specified in EPA Method 28 WHH Btu/lb (18.567 MJ/kg). typically requires manual reset), boiling and the standards referenced therein may be DT—Temperature difference between cooling water in a non-pressurized system or used. Where short averaging times are used, water entering and exiting the heat activation of a pressure or temperature relief however, the averaging period for fuel exchanger. valve in a pressurized system. consumption may still be at 10 minutes. This Qout ¥ Total heat output in Btu’s (MJ). 12.5.8 Option to Eliminate Tests in average wood consumption rate shall be Qin ¥ Total heat input available in test fuel Category II and III. Following successful applied to all of the smaller time intervals charge in Btu’s (MJ). completion of a test run in Category I, the included. Qstd—Volumetric flow rate in dilution tunnel manufacturer may eliminate the Cat II and III 12.6 Additional Test Runs. The testing in dscfm. tests. For the purpose of calculating the laboratory may conduct more than one test M—Mass flow rate of water in lb/min (kg/ annual averages for particulates and run in each of the heat output categories min). efficiency, the values obtained in the specified in section 4.3. If more than one test V —Volume of water indicated by a totalizing Category I run shall be assumed to apply also i run is conducted at a specified heat output flow meter at the ith reading in gallons to Category II and Category III. It is rate, the results from at least two-thirds of the (liters). envisioned that this option would be test runs in that heat output rate category V —Volumetric flow rate of water in heat applicable to systems which have sufficient f shall be used in calculating the weighted exchange system in gallons per minute thermal storage such that the fuel load in the average emission rate. The measurement data (liters/min). Cat I test can be completely consumed and results of all test runs shall be reported Q—Total length of burn period in hours (Q without the system reaching its upper 1 regardless of which values are used in + Q + Q ). operating temperature limit. In this case the 2 3 calculating the weighted average emission boiler/heater would likely be operating at Q1—Length of time of the startup period in maximum thermal output during the entire rate. hours. Q —Length of time of the steady state period test and this output rate may be higher than 13.0 Calculation of Results 2 the Manufacturer’s Rated Heat Output in hours. 13.1 Nomenclature. Capacity. The Category II and III runs would Q3—Length of time of the end period in then be the same as the Category I run. It may COs—Carbon monoxide measured in the hours. be assumed that the particulate emission dilution tunnel at arbitrary time in ppm Q4—Length of time for stored heat to be used values and efficiency values determined in dry basis. following a burn period in hours. the startup, steady-state, and end phases of COg/min—Carbon monoxide emission rate in ti—Data sampling interval in minutes. Category I are applicable in Categories II and g/min. hdel—Delivered heating efficiency in percent. III, for the purpose of determining the annual COT—Total carbon monoxide emission for Fi—Weighting factor for heat output category averages in lb/MMBtu and g/MJ (See section the full test run in grams. i. See Table 2. _ 13). For the annual average in g/hr, the length CO 1—Startup period carbon monoxide T1—Temperature of water at the inlet on the of time for stored heat to be drawn from emissions in grams. supply side of the heat exchanger, °F. _ thermal storage shall be determined for the CO 2—Steady-state period carbon monoxide T2—Temperature of the water at the outlet test load requirements of the respective emission in grams. on the supply side of the heat exchanger, _ ° Category. CO 3—End period carbon monoxide F. 12.5.9 Modification to Measurement emission in grams. T3—Temperature of cooling water at the inlet Procedure in EPA Method 28 WHH to ET—Total particulate emissions for the full to the load side of the heat exchanger, °F. Determine Emissions Separately During the test run as determined per EPA Method T4—Temperature of cooling water at the Startup, Steady-State and End Phases. With 28 WHH and the standards referenced outlet of the load side of the heat one of the two particulate sampling trains therein in grams. exchanger, °F. used, filter changes shall be made at the end E1 = Startup period particulate emissions in T5—Temperature of the hot water supply as of the startup phase and the steady state grams. it leaves the boiler/heater, °F. phase (See section 3.0). This shall be done to E2 = Steady-state period particulate T6—Temperature of return water as it enters determine the particulate emission rate and emissions in grams. the boiler/heater, °F. particulate emission index for the startup, E3 = End period particulate emissions in T7—Temperature in the boiler/heater steady state, and end phases individually. grams. optional destratification loop at the top For this one train, the particulates measured E1_g/kg = Startup period particulate emission of the boiler/heater, °F. during each of these three phases shall be index in grams per kg fuel. T8—Temperature in the boiler/heater added together to also determine the E2_g/kg = Steady-state period particulate optional destratification loop at the particulate emissions for the whole run. emission index in grams per kg fuel. bottom of the boiler/heater, °F. 12.5.10 Modification to Measurement E3_g/kg = End period particulate emission TIavg—Average temperature of the appliance Procedure in EPA Method 28 WHH and the index in grams per kg fuel. and water at start of the test. standards referenced therein on Averaging E1_g/hr = Startup period particulate emission TIS1—Temperature at the inlet to the storage Period for Determination of Efficiency by the rate in grams per hour. system at the start of the test. Stack Loss Method. The methods currently E2_g/hr = Steady-state period particulate TIS2—Temperature at the outlet from the defined in Method 28 WHH allow averaging emission rate in grams per hour. storage system at the start of the test. over 10 minute time periods for flue gas E3_g/hr = End period particulate emission rate TFS1—Temperature at the inlet to the storage temperature, flue gas CO2, and flue gas CO in grams per hour. system at the end of the test. for the determination of the efficiency with Eg/MJ—Emission rate in grams per MJ of heat TFS2—Temperature at the outlet from the the Stack Loss Method. However, under some output. storage system at the end of the test. cycling conditions the ‘‘on’’ period may be Elb/mmBtu output—Emissions rate in pounds per TISavg—Average temperature of the storage short relative to this 10 minute period. For million Btu’s of heat output. system at the start of the test.

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MC—Fuel moisture content in percent dry Wfuel_3—Fuel consumed during the end WScale—Reading of the weight scale at basis. period in pounds (kg). arbitrary time during the test run in s—Density of water in pounds per gallon. WFuelBurned—Weight of fuel that has been pounds (kg). sInitial—Density of water in the boiler/heater burned from the start of the test to an WStorageTank—Weight of the storage tank system at the start of the test in pounds arbitrary time, including the needed empty in pounds (kg). per gallons. correction for the change in density and WWaterStorage—Weight of the water in the sboiler/heater—Density of water in the boiler/ heater system at arbitrary time during the weight of the water in the boiler/heater storage tank at TISavg in pounds (kg). test in pounds per gallon. system on the scale in pounds (kg). 13.2 After the test is completed, Cp—Specific heat of water in Btu/lb ¥°F. WRemainingFuel—weight of unburned fuel determine the particulate emissions ET in ¥° Csteel—Specific heat of steel (0.1 Btu/lb F). separated from the ash at the end of a accordance with EPA Method 28 WHH and Vboiler/heater—total volume of water in the test. Useful only for Cat I and Cat II tests. the standards referenced therein. boiler/heater system on the weight scale Wapp—Weight of empty appliance in pounds 13.3 Determination of the weight of fuel in gallons. (kg). that has been burned at arbitrary time W —Fuel charge weight, as-fired or ‘‘wet’’, fuel W —Weight of water in supply side of the in pounds (kg). wat For the purpose of tracking the system in pounds (kg). consumption of the test fuel load during a Wfuel_1—Fuel consumed during the startup period in pounds (kg). WScaleInitial—weight reading on the scale at the test run the following may be used to Wfuel_2—Fuel consumed during the steady start of the test, just after the test load calculate the weight of fuel that burned since state period in pounds (kg). has been added in pounds (kg). the start of the test:

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13.6 Determine heat output, efficiency, Qout = S [Heat output determined for each stored in the appliance + Change in heat and emissions sampling time interval] + Change in heat in storage tank. 13.6.1 Determine heat output as:

Note: The subscript (i) indicates the Mi = Mass flow rate = gal/min × Density parameter value for sampling time interval ti. of Water (lb/gal) = lb/min.

Note: Vi is the total water volume at the This calculation is necessary when a 13.6.2 Determine Heat Output Rate Over end of interval i and Vi-1 is the total water totalizing type water meter is used. Burn Period (Q1+ Q2+ Q3) as: volume at the beginning of the time interval.

If thermal storage is not used in a Category E2_g/kg = E2/(Wfuel_2/(1+MC/100)), g/dry kg E2_g/hr = E2/Q2, g/hr III or IV run, then Q4 = 0 E3_g/kg = E3/(Wfuel_3/(1+MC/100)), g/dry kg E3_g/hr = E3/Q3, g/hr E1_g/kg = E1/(Wfuel_1/(1+MC/100)), g/dry kg E1_g/hr = E1/Q1, g/hr 13.6.4 Determine delivered efficiency as:

13.6.5 Determine hSLM—Overall B415.1–2010, Clause 13.7 except for 13.7.2 measurements, as determined by Eq. 22 of Efficiency, also known as Stack Loss (e), (f), (g), and (h), use the following average this method, section 14.1.7 of the test report Efficiency, using Stack Loss Method (SLM). fuel properties for oak: %C = 50.0, %H = 6.6, must include a discussion of the reasons for For determination of the average overall %O = 43.2, %Ash = 0.2. this result. For a test where the CSA B415.1– thermal efficiency (hSLM) for the test run, use 13.6.5.1 Whenever the CSA B415.1–2010 2010 overall efficiency SLM is less than 2 the data collected over the full test run and overall efficiency is found to be lower than percentage points lower than the overall the calculations in accordance with CSA the overall efficiency based on load side efficiency based on load side measurements,

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the efficiency based on load side based on the energy input and output the efficiency based on the SLM, then, clearly measurements shall be considered invalid. measurements or ‘‘delivered efficiency.’’ A indicates a measurement error.] [Note on the rationale for the 2 percentage delivered efficiency that is higher than the 13.6.6 Carbon Monoxide Emissions points limit. The SLM method does not efficiency based on the SLM could be For each minute of the test period, the include boiler/heater jacket losses and, for considered suspect. A delivered efficiency carbon monoxide emission rate shall be this reason, should provide an efficiency greater than 2 percentage points higher than calculated as: which is actually higher than the efficiency

Total CO emissions for each of the three 13.7 Weighted Average Emissions and building heating requirements in terms of test periods (CO_1, CO_2, CO_3) shall be Efficiency. percent of design capacity and time in a calculated as the sum of the emission rates 13.7.1 Determine the weighted average particular capacity range—or ‘‘bin’’—over the for each of the 1 minute intervals. Total CO emission rate and delivered efficiency from course of a heating season. The values used the individual tests in the specified heat emission for the test run, COT, shall be in this method represent an average of data output categories. The weighting factors (Fi) calculated as the sum of CO_1, CO_2, and from several cities located in the northern _ are derived from an analysis of ASHRAE Bin CO 3. Data which provides details of normal United States.

If, as discussed in section 12.5.8, the method, and their data quality implications 14.1.18 A plot of CO emission rate in option to eliminate tests in Category II and on the test results (if any), as well as grams/minute vs. time, based on 1 minute III is elected, the values of efficiency and information on specific test conditions, such averages, for the entire test period, for each particulate emission rate as measured in as environmental conditions. run. Category I, shall be assigned also to Category 14.1.9 A list of participants and their 14.1.19 A plot of estimated boiler/heater II and III for the purpose of determining the roles and observers present for the tests. energy release rate in Btu/hr based on 10 annual averages. 14.1.10 Data and drawings indicating the minute averages, for the entire test period, for fire box size and location of the fuel charge. each run. This will be calculated from the 14.0 Report 14.1.11 Drawings and calculations used 14.1.1 The report shall include the to determine firebox volume. fuel used, the wood heating value and following: 14.1.12 Information for each test run fuel moisture content, and the SLM efficiency 14.1.2 Name and location of the charge including piece size, moisture content during each 10 minute period. laboratory conducting the test. and weight. 14.1.20 Raw data, calibration records, and 14.1.3 A description of the appliance 14.1.13 All required data and applicable other relevant documentation shall be tested and its condition, date of receipt and blanks for each test run shall be provided in retained by the laboratory for a minimum of dates of tests. spreadsheet format both in the printed report 7 years. 14.1.4 A description of the minimum and in a computer file such that the data can amount of external thermal storage that is be easily analyzed and calculations easily 15.0 Precision and Bias required for use with this system. This shall verified. Formulas used for all calculations 15.1 Precision—It is not possible to be specified both in terms of volume in shall be accessible for review. specify the precision of the procedure in this gallons and stored energy content in Btu with 14.1.14 For each test run, Q1,Q2, Q3, the test method because the appliance operation ° a storage temperature ranging from 125 F to total CO and particulate emission for each of and fueling protocols and the appliances the manufacturer’s specified setpoint these three periods, and Q4. themselves produce variable amounts of temperature. 14.1.15 Calculated results for delivered emissions and cannot be used to determine 14.1.5 A statement that the test results efficiency at each heat output rate and the reproducibility or repeatability of this test apply only to the specific appliance tested. weighted average emissions reported as total method. 14.1.6 A statement that the test report emissions in grams, pounds per million Btu 15.2 Bias—No definitive information can shall not be reproduced except in full, of delivered heat, grams per MJ of delivered without the written approval of the heat, grams per kilogram of dry fuel and be presented on the bias of the procedure in laboratory. grams per hour. Results shall be reported for this test method for measuring solid fuel 14.1.7 A description of the test each heat output category and the weighted burning hydronic heater emissions because procedures and test equipment including a average. no material having an accepted reference schematic or other drawing showing the 14.1.16 Tables 1A, 1B, 1C, 1D, 1E and 2 value is available. location of all required test equipment. Also, must be used for presentation of results in 16.0 Keywords a description of test fuel sourcing, handling test reports. and storage practices shall be included. 14.1.17 A statement of the estimated 16.1 Solid fuel, hydronic heating 14.1.8 Details of deviations from, uncertainty of measurement of the emissions appliances, wood-burning hydronic heaters, additions to or exclusions from the test and efficiency test results. partial thermal storage.

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TABLE 1A—DATA SUMMARY PART A

Q Wfuel MCave Qin Qout Test dura- Wood Wood mois- Heat input Category Run No. Load % Target load Actual load Actual load tion weight as- ture capacity Btu/hr % of max hrs fired Heat input Btu/hr Btu lb %DB Btu

I ...... <15% of max II ...... 16–24% of max. III ...... 25–50% of max. IV ...... Max capacity ..

TABLE 1B—DATA SUMMARY PART B

T2 Min ET E E Eg/hr Eg/kg hdel HSLM

Load % Min return Total PM PM output PM output PM rate PM factor Delivered ef- Stack loss Category Run No. capacity water temp. emissions based based ficiency efficiency ° lb/MMBtu g/hr g/kg F g Out g/MJ % %

I ...... <15% of max II ...... 16–24% of max. III ...... 25–50% of max. IV ...... Max capacity ..

TABLE 1C—DATA SUMMARY PART C

Q1 Q2 Q3 CO_1 CO_2 CO_3 COT Load % Startup time. Steady state End time Startup CO Steady state End CO Total CO Category Run No. capacity time emission CO emission emission emission min min min g g g g

I ...... <15% of max ...... II ...... 16–24% of max ...... III ...... 25–50% of max ...... IV ...... Max capacity ......

TABLE 1D—DATA SUMMARY PART D

E1 E2 E3 E1_g/kg E2_g/kg E3_g/kg Startup PM Steady End PM Startup PM Steady End PM Category Run No. Load % state PM emission state PM emission capacity index emission index index g g g g/kg fuel g/kg fuel g/kg fuel

I ...... <15% of max ...... II ...... 16–24% of max ...... III ...... 25–50% of max ...... IV ...... Max capacity ......

TABLE 1E—LABEL SUMMARY INFORMATION

MANUFACTURER: MODEL NUMBER: ANNUAL EFFICIENCY RATING: ...... havg ...... (Using higher heating value). PARTICLE EMISSIONS: ...... Eavg ...... GRAMS/HR (average). LBS/MILLION Btu/hr OUTPUT.

TABLE 2—ANNUAL WEIGHTING

Weighting fac- Category hdel,i x Fi Eg/MJ,i x Fi Eg/kg,i x Fi Elb/MMBtu Out,i x Fi Eg/hr,i x Fi tor (Fi)

I ...... 0.437 II ...... 0.238

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TABLE 2—ANNUAL WEIGHTING—Continued

Weighting fac- Category hdel,i x Fi Eg/MJ,i x Fi Eg/kg,i x Fi Elb/MMBtu Out,i x Fi Eg/hr,i x Fi tor (Fi)

III ...... 0.275 IV ...... 0.050

Totals ...... 1.000

Figure 1. Schematic of Equipment Test Setup

D

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■ 7. Revise Appendix I to Part 60 to read is provided as instructions. Owner’s manuals instructions are composed of generic as follows: should be tailored to specific wood heater descriptions and texts. models, as appropriate. (b) If manufacturers choose to use the Appendix I to Part 60—Owner’s 2.2 Topics Required To Be Addressed in language provided in the example, the Manuals for Wood-Burning Heaters Owner’s Manual portion in italics should be revised as Subject to Subparts AAA, QQQQ, and appropriate. Any manufacturer electing to (a) Wood heater description and RRRR of Part 60 use the EPA example language will be compliance status; considered to be in compliance with owner’s (b) Tamper warning; 1. Introduction manual requirements provided that the (c) Catalyst information and warranty (if particular language is printed in full with The purpose of this appendix is to provide catalyst equipped); only such changes as are necessary to ensure specific instructions to manufacturers for (d) Fuel selection; accuracy. compliance with the owner’s manual (e) Achieving and maintaining catalyst Example language is not provided for provisions of subparts AAA, QQQQ, and light-off (if catalyst equipped); certain topics, since these areas are generally RRRR of this part. (f) Catalyst monitoring (if catalyst heater specific. For these topics, equipped); 2. Instructions for Preparation of Wood manufacturers should develop text that is (g) Troubleshooting catalytic equipped Heater Owner’s Manuals specific to the operation and maintenance of heaters (if catalyst equipped); their particular products. 2.1 Introduction (h) Catalyst replacement (if catalyst 2.3.1 Wood Heater Description and Although the owner’s manuals do not equipped); Compliance Status require premarket approval, EPA will (i) Wood heater operation and monitor the contents to ensure that sufficient maintenance; and Owner’s Manuals must include: information is included to provide heater (j) Wood heater installation: achieving (a) Manufacturer and model; operation and maintenance information proper draft. (b) Compliance status (exempt, 1990 std., affecting emissions to consumers. The 2015 std., etc.); and purpose of this section is to provide 2.3 Sample Text/Descriptions (c) Heat output range. instructions to manufacturers for compliance (a) The following are example texts and/or Exhibit 1—Example Text covering (a), (b), with the owner’s manual provisions of further descriptions illustrating the topics and (c) above: § 60.536(f) of subpart AAA that applies to identified above. Although the regulation ‘‘This manual describes the installation wood heaters, § 60.5478(f) of subpart QQQQ requires manufacturers to address (where and operation of the Brand X, Model 0 that applies to hydronic heaters and forced- applicable) the ten topics identified above, catalytic equipped wood heater. This heater air furnaces, and § 60.5490(g) of subpart the exact language is not specified. Manuals meets the U.S. Environmental Protection RRRR that applies to masonry heaters. A should be written specific to the model and Agency’s emission limits for wood heaters checklist of topics and illustrative language design of the wood heater. The following sold after January 1, 2015. Under specific test

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conditions this heater has been shown to (c) Achieving catalyst light-off when • You can get an indication of whether the deliver heat at rates ranging from 8,000 to refueling. catalyst is working by comparing the amount 35,000 Btu/hr.’’ 2.3.5.1 No example text is supplied for of smoke leaving the chimney when the 2.3.2 Tamper Warning describing operation of catalyst bypass smoke is going through the combustor and mechanisms (Item (a) above) since these are catalyst light-off has been achieved, to the The following statement must be included typically stove-specific. Manufacturers must amount of smoke leaving the chimney when in the owner’s manual for catalyst-equipped provide instructions specific to their model the smoke is not routed through the units: describing: combustor (bypass mode). ‘‘This wood heater contains a catalytic (1) Bypass position during startup; Step 1—Light stove in accordance with combustor, which needs periodic inspection (2) Bypass position during normal instructions in 3.3.5. and replacement for proper operation. It is operation; and Step 2—With smoke routed through the against the law to operate this wood heater (3) Bypass position during reloading. catalyst, go outside and observe the in a manner inconsistent with operating Exhibit 4—Example Text for Item (b): emissions leaving the chimney. instructions in this manual, or if the catalytic ‘‘The temperature in the stove and the Step 3—Engage the bypass mechanism and element is deactivated or removed.’’ gases entering the combustor must be raised again observe the emissions leaving the 2.3.3 Catalyst Information to between 500° to 700°F for catalytic activity chimney. to be initiated. During the startup of a cold Significantly more smoke should be seen The following information must be when the exhaust is not routed through the included with or supplied in the owner’s and stove, a medium to high firing rate must be maintained for about 20 minutes. This combustor (bypass mode). Be careful not to warranty manuals: confuse smoke with steam from wet wood.’’ (a) Catalyst manufacturer and model; ensures that the stove, catalyst, and fuel are (b) Catalyst warranty details; and all stabilized at proper operating 2.3.7 Catalyst Troubleshooting temperatures. Even though it is possible to (c) Instructions for warranty claims. ° The owner’s manual must provide clear Exhibit 2—Example Text covering (a), (b), have gas temperatures reach 600 F within 2 descriptions of symptoms and remedies to and (c): to 3 minutes after a fire is started, if the fire common combustor problems. It is ‘‘The combustor supplied with this heater is allowed to die down immediately it may recommended that photographs of catalyst is a Brand Z, Long Life Combustor. Consult go out or the combustor may stop working. peeling, plugging, thermal cracking, the catalytic combustor warranty also Once the combustor starts working, heat mechanical cracking, and masking be supplied with this wood heater. Warranty generated in it by burning the smoke will included in the manual to aid the consumer claims should be addressed to: keep it working.’’ in identifying problems and to provide Stove or Catalyst Manufacturer llllll Exhibit 5—Example Text for Item (c): direction for corrective action. ‘‘REFUELING: During the refueling and Address llllllllllllllll 2.3.8 Catalyst Replacement Phone # lllllllllllllllll rekindling of a cool fire, or a fire that has burned down to the charcoal phase, operate The owner’s manual must provide clear 2.3.3.1 This section should also provide the stove at a medium to high firing rate for step-by-step instructions on how to remove clear instructions on how to exercise the about 10 minutes to ensure that the catalyst and replace the catalytic combustor. The warranty (how to package for return reaches approximately 600 °F.’’ section should include diagrams and/or shipment, etc.). 2.3.6 Catalyst Monitoring photographs. 2.3.4 Fuel Selection Owner’s manuals must include: 2.3.9 Wood Heater Operation and Owner’s manuals must include: (a) Recommendation to visually inspect Maintenance (a) Instructions on acceptable fuels; and combustor at least three times during the Owner’s manual must include: (b) Warning against inappropriate fuels. heating season; (a) Recommendations about building and Exhibit 3—Example Text covering (a) and (b) Discussion on expected combustor maintaining a fire; (b): temperatures for monitor-equipped units; (b) Instruction on proper use of air ‘‘This heater is designed to burn natural and controls; wood only. Higher efficiencies and lower (c) Suggested monitoring and inspection (c) Ash removal and disposal; emissions generally result when burning air techniques. (d) Instruction on gasket replacement; and dried seasoned hardwoods, as compared to Exhibit 6—Example Text covering (a), (b) (e) Warning against overfiring. softwoods or to green or freshly cut and (c): 2.3.9.1 No example text is supplied for hardwoods. ‘‘It is important to periodically monitor the (a), (b), and (d) since these items are model DO NOT BURN: operation of the catalytic combustor to specific. Manufacturers should provide • Treated Wood ensure that it is functioning properly and to detailed instructions on building and • Coal determine when it needs to be replaced. A maintaining a fire including selection of fuel • Garbage non-functioning combustor will result in a pieces, fuel quantity, and stacking • Cardboard loss of heating efficiency, and an increase in arrangement. Manufacturers should also • Solvents creosote and emissions. Following is a list of provide instruction on proper air settings • Colored Paper items that should be checked on a periodic (both primary and secondary) for attaining • Trash basis: minimum and maximum heat outputs and • Burning treated wood, garbage, solvents, Combustors should be visually inspected any special instructions for operating colored paper or trash may result in release at least three times during the heating season thermostatic controls. Step-by-step of toxic fumes and may poison or render to determine if physical degradation has instructions on inspection and replacement ineffective the catalytic combustor. Burning occurred. Actual removal of the combustor is of gaskets should also be included. coal, cardboard, or loose paper can produce not recommended unless more detailed Manufacturers should provide diagrams and/ soot, or large flakes of char or fly ash that can inspection is warranted because of decreased or photographs to assist the consumer. Gasket coat the combustor, causing smoke spillage performance. If any of these conditions type and size should be specified. into the room, and rendering the combustor exists, refer to Catalyst Troubleshooting Exhibit 7—Example Text for Item (c): ineffective.’’ section of this owner’s manual. ‘‘Whenever ashes get 3 to 4 inches deep in • This catalytic heater is equipped with a your firebox or ash pan, and when the fire 2.3.5 Achieving and Maintaining Catalyst temperature probe to monitor catalyst has burned down and cooled, remove excess Light-Off operation. Properly functioning combustors ashes. Leave an ash bed approximately 1 inch Owner’s manuals must describe in detail typically maintain temperatures in excess of deep on the firebox bottom to help maintain proper procedures for: 500 °F, and often reach temperatures in a hot charcoal bed.’’ (a) Operation of catalyst bypass (stove excess of 1,000 °F. If catalyst temperatures ‘‘Ashes should be placed in a metal specific), are not in excess of 500 °F, refer to Catalyst container with a tight-fitting lid. The closed (b) Achieving catalyst light-off from a cold Troubleshooting section of this owner’s container of ashes should be placed on a start, and manual. noncombustible floor or on the ground, away

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from all combustible materials, pending final (a) Importance of proper draft; cause backpuffing into the room and disposal. The ashes should be retained in the (b) Conditions indicating inadequate draft; ‘plugging’ of the chimney or the catalyst.’’ closed container until all cinders have and Exhibit 10—Example Text for Item (b): thoroughly cooled.’’ (c) Conditions indicating excessive draft. ‘‘Inadequate draft will cause the appliance Exhibit 8—Example Text covering Item (e): Exhibit 9—Example Text for Item (a): to leak smoke into the room through ‘‘DO NOT OVERFIRE THIS HEATER’’ ‘‘Draft is the force which moves air from appliance and chimney connector joints.’’ ‘‘Attempts to achieve heat output rates that the appliance up through the chimney. The Exhibit 11—Example Text for Item (c): exceed heater design specifications can result amount of draft in your chimney depends on ‘‘An uncontrollable burn or a glowing red in permanent damage to the heater and to the the length of the chimney, local geography, stove part or chimney connector indicates catalytic combustor if so equipped.’’ nearby obstructions, and other factors. Too excessive draft.’’ 2.3.10 Wood Heater Installation: much draft may cause excessive temperatures Achieving Proper Draft in the appliance and may damage the [FR Doc. 2014–00409 Filed 1–31–14; 8:45 am] Owner’s manual must include: catalytic combustor. Inadequate draft may BILLING CODE 6560–50–P

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Part IV

Department of Homeland Security

Chemical Facility Anti-Terrorism Standards Personnel Surety Program; Notice

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DEPARTMENT OF HOMELAND Directorate. Comments must be 3. Enhance the quality, utility, and SECURITY identified by the docket number DHS– clarity of the information to be 2012–0061 and may be submitted by collected; and [Docket No. DHS–2012–0061] one of the following methods: 4. Minimize the burden of the Chemical Facility Anti-Terrorism • Federal eRulemaking Portal: http:// collection of information on those who Standards Personnel Surety Program www.regulations.gov. are to respond, including through the • Email: oira_submission@ use of appropriate automated, AGENCY: National Protection and omb.eop.gov. Include the docket electronic, mechanical, or other Programs Directorate, DHS. number in the subject line of the technological collection techniques or ACTION: 30-Day notice and request for message. other forms of information technology, comments; New Information Collection • Fax: (202) 395–5806. e.g., permitting electronic submissions Request: 1670–NEW. of responses. Instructions: All submissions received SUMMARY: The Department of Homeland must include the words ‘‘Department of Table of Contents Security (DHS), National Protection and Homeland Security’’ and the docket I. Supplementary Information Programs Directorate (NPPD), Office of number for this action. Comments • Summary of Options Available to High- Infrastructure Protection (IP), received will be posted without Risk Chemical Facilities To Comply Infrastructure Security Compliance alteration at http://www.regulations.gov, With RBPS 12(iv) Division (ISCD) will submit the including any personal information • Scope of This Notice and Commitment following Information Collection provided. To Explore Additional Options in the Request (ICR) to the Office of Comments that include trade secrets, Future • Who is Impacted by the CFATS Management and Budget (OMB) for confidential commercial or financial Personnel Surety Program? review and clearance in accordance information, Chemical-terrorism • What/Who is the Source of the with the Paperwork Reduction Act Vulnerability Information (CVI),3 Information Under Option 1 and Option (PRA) of 1995 (Pub. L. 104–13, 44 U.S.C. Sensitive Security Information (SSI),4 or 2 Chapter 35). The Department previously Protected Critical Infrastructure • CSAT User Roles and Responsibilities published a notice about the CFATS Information (PCII) 5 should not be • Burden Resulting From the Submission Personnel Surety Program Information submitted to the public regulatory of Duplicate Records About an Affected Collection Request in the Federal docket. Please submit such comments Individual • Compliance With RBPS 12(iv) and the Register on March 22, 2013, for a 60-day separately from other comments in Potential for Increased Burden to Enter 1 public comment period. On May 21, response to this notice. Comments the Restricted Areas or Critical Assets at 2013, the Department extended the containing trade secrets, confidential a High-Risk Chemical Facility comment period an additional 14 days.2 commercial or financial information, • Additional Data Privacy Considerations In this notice, NPPD is (1) responding to CVI, SSI, or PCII should be II. Information Collected About Affected 28 comments submitted in response to appropriately marked and submitted by Individuals • the 60-day notice previously published mail to the Office of Information and Option 1: Collecting Information To about this ICR, and (2) soliciting public Regulatory Affairs, OMB. Comments Conduct Direct Vetting • Option 2: Collecting Information To Use comments concerning this ICR for an should be addressed to OMB Desk Vetting Conducted Under Other DHS additional 30 days. This notice also Officer, care of the DHS/NPPD/IP/ISCD Programs describes the nature of the CFATS CFATS Program Manager at the • Option 3: Electronic Verification of Personnel Surety Program Information Department of Homeland Security, 245 TWIC Collection Request, the categories of Murray Lane SW., Mail Stop 0610, • Other Information Collected respondents, the estimated burden (in Arlington, VA 20528–0610. Comments III. Request For Exception To the hours), and the estimated burden cost must be identified by docket number Requirement Under 5 CFR 1320.8(b)(3) necessary to implement the Chemical DHS–2012–0061. IV. Responses to Comments Submitted Facility Anti-Terrorism Standards During 60-Day Comment Period OMB is particularly interested in V. The Department’s Methodology in (CFATS) Personnel Surety Program comments that: Estimating the Burden pursuant to 6 CFR 27.230(a)(12)(iv). 1. Evaluate whether the proposed • Summary of Changes From 60-Day DATES: Comments are encouraged and collection of information is necessary Notice will be accepted until March 5, 2014. • Frequency for the proper performance of the • This process is conducted in accordance functions of the agency, including Affected Public • Number of Respondents with 5 CFR 1320.8. whether the information will have ADDRESSES: Interested persons are practical utility; Æ Number and Type of High-Risk invited to submit written comments on 2. Evaluate the accuracy of the Chemical Facilities the proposed information collection to agency’s estimate of the burden of the the Office of Information and Regulatory proposed collection of information, Æ Estimated Number of Affected Affairs, OMB. Comments should be including the validity of the Individuals at Each Type of High-Risk addressed to OMB Desk Officer, methodology and assumptions used; Chemical Facility—Unescorted Visitors With Department of Homeland Security, Access to Restricted Areas or Critical Assets Æ Estimated Number of Affected National Protection and Programs 3 For more information about CVI see 6 CFR Individuals at Each Type of High-Risk 27.400 and the CVI Procedural Manual at http:// _ _ Chemical Facility—Facility Personnel 1 See 78 FR 17680 (March 22, 2013). The 60-day www.dhs.gov/xlibrary/assets/chemsec cvi With Access To Restricted Areas or proceduresmanual.pdf. Federal Register notice for Information Collection Critical Assets 1670–NEW, which solicited comments for 60 days, 4 For more information about SSI see 49 CFR part Æ may be found at https://federalregister.gov/a/2013- 1520 and the SSI Program Web page at http:// Summary of Alternatives to Estimate the 06184. www.tsa.gov/ssi. Number of Respondents 2 5 See 78 FR 29759 (May 21, 2013). The Federal For more information about PCII see 6 CFR part Æ Register notice that extended the comment period 29 and the PCII Program Web page at http:// Limitation of Respondents To Tier 1 and an additional 14 days may be viewed at https:// www.dhs.gov/protected-critical-infrastructure- Tier 2 Facilities federalregister.gov/a/2013-12059. information-pcii-program. • Total Annual Burden Hours

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• Estimated Time per Respondent facilities must work together to satisfy or are seeking access to the restricted • Total Burden Cost (Capital/Startup) the ‘‘terrorist ties’’ aspect of the areas and/or critical assets at the Æ Personnel Surety performance standard. nation’s high-risk chemical facilities. Estimating Capital Costs for Option 3— As a result, the CFATS Personnel Surety The first option is consistent with the Number and Type of High-Risk Chemical Facilities That May Choose to Use Option 3 Program will identify individuals with primary approach described in the terrorist ties that have or are seeking CFATS IFR preamble, as discussed Æ Estimating Capital Costs for Option 3— access to the restricted areas and/or above. Under Option 1—Direct Vetting, TWIC Reader Costs critical assets at the nation’s high-risk high-risk chemical facilities (or others chemical facilities. Accordingly, in the acting on their behalf) would submit Æ Consideration of Other Capital Costs preamble to the CFATS IFR, the certain information about affected • Recordkeeping Costs individuals to the Department through a • Department outlined two potential Total Burden Cost (Operating/ Personnel Surety application in an Maintaining) approaches to help high-risk chemical VI. Solicitation of Comments facilities satisfy that particular standard, online technology system developed VII. Analysis both of which would involve high-risk under CFATS called the Chemical chemical facilities submitting certain Security Assessment Tool (CSAT). I. Supplementary Information information to the Department. See id. Access to and the use of CSAT is Section 550 of the Department of The first approach would involve provided free of charge to high-risk Homeland Security Appropriations Act facilities submitting certain information chemical facilities (or others acting on of 2007, Public Law 109–295 (2006) about affected individuals to the their behalf). (‘‘Section 550’’), provides the Department, which the Department Under this option, information about Department with the authority to would use to vet those individuals for affected individuals submitted by, or on identify and regulate the security of terrorist ties. Specifically, identifying behalf of, high-risk chemical facilities high-risk chemical facilities using a risk- information about affected individuals would be vetted against information based approach. On April 9, 2007, the would be compared against identifying contained in the federal government’s Department issued the CFATS Interim information of known or suspected consolidated and integrated terrorist Final Rule (IFR) implementing this terrorists contained in the federal watchlist. statutory mandate. See 72 FR 17688 government’s consolidated and The second option is also consistent (April 9, 2007). integrated terrorist watchlist, the with the second approach described in Section 550 requires that the Terrorist Screening Database (TSDB), the CFATS IFR preamble. Under Option Department establish risk-based which is maintained on behalf of the 2—Use Of Vetting Conducted Under performance standards (RBPS) for high- federal government by the Department Other DHS Programs, high-risk chemical risk chemical facilities and under of Justice (DOJ) Federal Bureau of facilities (or others acting on their CFATS the Department promulgated 18 Investigation (FBI) in the Terrorist behalf) would also submit certain RBPS. Each chemical facility that has Screening Center (TSC).6 information about affected individuals been finally determined by the In order to avoid unnecessary to the Department through the CSAT Department to be high-risk must submit duplication of terrorist screening, the Personnel Surety application. a Site Security Plan (SSP), or an Department also described an additional Option 2 would, however, allow high- Alternative Security Program (ASP) if approach under which high-risk risk chemical facilities and the the facility so chooses, for Department chemical facilities would submit Department to take advantage of the approval that satisfies each applicable information about affected individuals vetting for terrorist ties already being RBPS. RBPS 12—Personnel Surety— possessing certain credentials that rely conducted on affected individuals requires high-risk chemical facilities to: on security threat assessments enrolled in the Transportation Worker Identification Credential (TWIC) Perform appropriate background checks on conducted by the Department. See 72 FR 17709 (April 9, 2007). Program, Hazardous Materials and ensure appropriate credentials for Endorsement (HME) Program, as well as facility personnel, and as appropriate, for The Department has developed a unescorted visitors with access to restricted CFATS Personnel Surety Program that the NEXUS, Secure Electronic Network areas or critical assets, including, (i) will provide high-risk chemical for Travelers Rapid Inspection Measures designed to verify and validate facilities additional options to comply (SENTRI), Free and Secure Trade identity; (ii) Measures designed to check with RBPS 12(iv) while continuing to (FAST), and Global Entry Trusted 7 criminal history; (iii) Measures designed to make available the two alternatives Traveler Programs. All of these verify and validate legal authorization to outlined in the preamble to the CFATS programs conduct terrorist ties vetting work; and (iv) Measures designed to identify equivalent to the terrorist ties vetting people with terrorist ties[.] IFR. In addition to the alternatives expressly described in this document, that would be conducted under Option 8 See 6 CFR 27.230(a)(12). the Department also intends to permit 1. Under Option 2, high-risk chemical As explained by the Department in high-risk chemical facilities to propose the preamble to the CFATS IFR, the 7 other alternative measures for terrorist U.S. Customs and Border Protection (CBP) has ability to identify affected individuals introduced SENTRI and Global Entry as Trusted ties identification in their SSPs or ASPs, (i.e., facility personnel or unescorted Traveler Programs since the publication of CFATS which the Department will consider on in April 2007. The Department, therefore, intends visitors with access to restricted areas or a case-by-case basis in evaluating high- to enable high-risk chemical facilities (or their critical assets at high-risk chemical designees) to submit information about affected risk chemical facilities’ SSPs or ASPs. individuals’ SENTRI and Global Entry enrollments facilities) who have terrorist ties is an As a result of the CFATS Personnel inherently governmental function and to DHS under Option 2, even though SENTRI and Surety Program, regardless of the option Global Entry were not listed along with the other necessarily requires the use of selected by the high-risk chemical Trusted Traveler Programs in the CFATS IFR information held in government- facility, the Department will identify preamble. See 72 FR 17709 (April 9, 2007). 8 maintained databases that are individuals with terrorist ties that have Each of the DHS programs referenced conducts unavailable to high-risk chemical recurrent vetting, which is equivalent to the terrorist ties vetting conducted under Option 1. facilities. See 72 FR 17709 (April 9, 6 For more information about the TSDB, see DOJ/ Recurrent vetting compares an affected individual’s 2007). Thus, under RBPS 12(iv), the FBI—019 Terrorist Screening Records System, 72 information against new and/or updated TSDB Department and high-risk chemical FR 47073 (August 22, 2007). Continued

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facilities, or their designees (e.g., third Department if the credential in the contractors, unescorted visitors). Each parties), could submit information to the possession of the affected individual is high-risk chemical facility will need to Department about affected individuals electronically verified and validated. describe how it will comply with RBPS possessing the appropriate credentials Accordingly, the Department plans to 12(iv) in its SSP or ASP. to enable the Department to offer high-risk chemical facilities a third In addition to the options described electronically verify the affected option. Under Option 3—Electronic above for satisfying RBPS 12(iv), high- individuals’ enrollments in these other Verification of TWIC, a high-risk risk chemical facilities are welcome to programs. The Department would chemical facility (or others acting on propose alternative or supplemental subsequently notify the Submitter of the their behalf) would not submit options not described in this PRA notice high-risk chemical facility whether or information about affected individuals in their SSPs or ASPs. The Department not an affected individual’s enrollment in possession of TWICs to the will assess the adequacy of such in one of these other DHS programs was Department if the high-risk chemical alternative or supplemental options on electronically verified. The Department facility (or others acting on their behalf) a facility-by-facility basis, in the course would also periodically re-verify each electronically verify and validate the of evaluating each facility’s SSP or ASP. affected individual’s continued affected individuals’ TWICs 10 through Although outside the scope of this enrollment in one of these other the use of TWIC readers (or other PRA notice and the underlying ICR, the programs, and notify the appropriate technology that is periodically updated Department would like to highlight that designee of the high-risk chemical using the with revoked card high-risk chemical facilities also have facility of significant changes in the information).11 Any high-risk chemical other methods to address, or minimize status of an affected individual’s facilities that choose this option would the impacts of, compliance with RBPS enrollment (e.g., if an affected need to describe in their SSPs or ASPs 12(iv). For example, facilities may individual who has been enrolled in the the procedures they will follow if they restrict the numbers and types of HME Program ceases to be enrolled, the choose to use TWIC readers for persons whom they allow to access their Department would change the status of compliance with RBPS 12(iv).12 restricted areas and critical assets, thus the affected individual in the CSAT High-risk chemical facilities would limiting the number of persons who will Personnel Surety application and notify have discretion as to which option(s) to need to be checked for terrorist ties. the Submitter).9 Electronic verification use for an affected individual. For Facilities also have wide latitude in how and re-verification would enable the example, even though a high-risk they define their restricted areas and Department and the high-risk chemical chemical facility could comply with critical assets in their SSPs or ASPs, facility to ensure that an affected RBPS 12(iv) for certain affected thus potentially limiting the number of individual’s credential or endorsement individuals by using Option 2, the high- persons who will need to be checked for is appropriate to rely on (i.e., an risk chemical facility could choose to terrorist ties. High-risk chemical indicator that the affected individual is use Option 1 for those affected facilities also may choose to escort being recurrently vetted for terrorist individuals. Similarly, a high-risk visitors to restricted areas and critical ties) in compliance with RBPS 12(iv). chemical facility, at its discretion, may assets in lieu of performing the In addition to Option 1 and Option 2, choose to use either Option 1 or Option background checks required by RBPS the Department has considered other 2 rather than Option 3 for affected 12. For example, high-risk chemical potential options to help high-risk individuals who have TWICs. High-risk facilities could propose in their SSPs or chemical facilities satisfy RBPS 12(iv). chemical facilities also may choose to ASPs traditional escorting solutions In particular, the Department has combine Option 1 with Option 2 and/ and/or innovative escorting alternatives investigated the feasibility of options or Option 3, as appropriate, to ensure such as video monitoring (which may that would not involve the submission that adequate terrorist ties checks are reduce facility security costs), as of information about an affected performed on different types of affected appropriate, to address the unique individual if the affected individual individuals (e.g., employees, security risks present at each facility. participated in one of the programs Summary of Options Available to High- 10 identified under Option 2. The Verification and validation of an affected Risk Chemical Facilities To Comply Department believes that, for the individual’s TWIC requires authentication that the affected individual’s TWIC is (1) a valid credential With RBPS 12(iv) purpose of compliance with RBPS issued by TSA, and (2) contains the Card Holder The purpose of the CFATS Personnel 12(iv), simply relying on a visual Unique Identifier and correct digital signature. inspection of a credential or 11 The Department currently offers two ways to Surety Program is to identify endorsement is inadequate because the determine if a TWIC has been revoked (or reported individuals with terrorist ties that have credential or endorsement could be lost or stolen). One is the Canceled Card List (CCL), or are seeking access to the restricted the other is the Certificate Revocation List (CRL). areas and/or critical assets at the expired, revoked, or fraudulent. More information about the Canceled Card List may However, the Department has be found at http://www.tsa.gov/sites/default/files/ nation’s high-risk chemical facilities. As concluded that information about an publications/pdf/twic/canceled_card_list_ccl_ described above, under the CFATS affected individual, enrolled in a DHS faq.pdf. More information about the CRL may be in Personnel Surety Program, for each the TWIC NPRM published on March 29, 2009 at affected individual a high-risk chemical program that conducts vetting for 74 FR 13364 which may be accessed at https:// terrorist ties equivalent to the vetting www.federalregister.gov/articles/2009/03/27/E9- facility would have at least three that would be conducted under Option 6852/transportation-worker-identification- options under RBPS 12(iv): credential-twic-reader-requirements#p-122. • OPTION 1—DIRECT VETTING: 1, would not need to be submitted to the 12 On March 22, 2013, the U.S. Coast Guard High-risk chemical facilities (or their published a notice of proposed rulemaking (NPRM) designees) may submit information to records as those new and/or updated records titled ‘‘TWIC Reader Requirements.’’ The become available. Recurrent vetting is a Department procedures for using TWIC readers that are the Department about an affected best practice. discussed in that NPRM would not apply to high- individual to be compared against 9 When the Department notifies the appropriate risk chemical facilities regulated under CFATS. information about known or suspected designee of the high-risk chemical facility of Likewise, the ways in which high-risk chemical terrorists, and/or significant changes in the status of an affected facilities could leverage TWICs as part of the • individual’s enrollment, such a notification should CFATS Personnel Surety Program do not apply to OPTION 2 –USE OF VETTING not be construed to indicate that an individual has maritime facilities or vessels regulated by the U.S. CONDUCTED UNDER OTHER DHS terrorist ties or be treated as derogatory information. Coast Guard. PROGRAMS: High-risk chemical

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facilities (or their designees) may submit The Department is committed, unpredictable circumstances), facilities information to the Department about an however, to continuing to work with may describe such situations and the affected individual’s enrollment in interested stakeholders to identify types of individuals who might require another DHS program so that the additional potential options that could access in those situations in their SSPs Department may electronically verify further reduce the burdens related to the or ASPs. The Department will assess the and validate that the affected individual CFATS Personnel Surety Program, appropriateness of such situations, and is enrolled in the other program, and/or while still meeting the national security any security measures to mitigate the • OPTION 3—ELECTRONIC mandate to reduce the risk of an inherent vulnerability in such VERIFICATION OF TWIC: High-risk individual with terrorist ties obtaining situations, on a case-by-case basis as it chemical facilities may electronically access to the restricted areas or critical reviews each high-risk chemical verify and validate an affected assets at a high-risk chemical facility. facility’s SSP or ASP. The Department will consider and individual’s TWIC, through the use of What/Who is the Source of the review any alternatives suggested as TWIC readers (or other technology Information Under Option 1 And part of public comments on this notice. which is periodically updated with Option 2 revoked card information), rather than Through both the PRA process and submitting information about the other ongoing dialogues, the Department High-risk chemical facilities are affected individual to the Department. will, as appropriate, also continue to responsible for complying with RBPS 12(iv). However, companies operating Regardless of the option, in the event work with stakeholders to identify multiple high-risk chemical facilities, as that there is a potential match, the potential additional alternatives as new well as companies operating only one Department has procedures in place that technologies emerge, and as other high-risk chemical facility, may comply it will follow to resolve the match and terrorist ties vetting programs are with RBPS 12(iv) in a variety of ways. coordinate with appropriate law modified or become available over time, High-risk chemical facilities, or their enforcement entities as necessary. so as to reduce the burden of this new information collection. parent companies, may choose to The Department intends to provide comply with RBPS 12(iv) by identifying high-risk chemical facilities, and their Who is Impacted by the CFATS and submitting the information about designees, the ability to create an alert Personnel Surety Program? affected individuals to the Department within the CSAT Personnel Surety The CFATS Personnel Surety Program directly. Alternatively, high-risk application that can notify them when will provide high-risk chemical chemical facilities, or their parent the Department has received facilities the ability to submit certain companies, may choose to comply with information about an affected biographic information about affected RBPS 12(iv) by outsourcing the individual(s), under Option 1 or Option individuals to the Department. As information submission process to third 2. Further, the Department will also explained above, affected individuals parties. allow high-risk chemical facilities the are (1) facility personnel who have The Department anticipates that many ability to view the status (e.g., that some access, either unescorted or otherwise, high-risk chemical facilities will rely on information about an affected individual to restricted areas or critical assets, and businesses that provide contract has been inputted into CSAT but not yet (2) unescorted visitors who have access services (e.g., complex turn-arounds, submitted to the Department under to restricted areas or critical assets. freight delivery services, lawn mowing) Option 1 or Option 2; that information There are also certain groups of to the high-risk chemical facilities to about an affected individual has been persons that the Department does not identify and submit the appropriate submitted; etc.) of records about affected consider to be affected individuals, such information about affected individuals individuals associated with their facility as (1) Federal officials that gain they employ to the Department for within the CSAT Personnel Surety unescorted access to restricted areas or vetting pursuant to RBPS 12(iv). application. critical assets as part of their official Businesses that provide services to high- Scope of This Notice and Commitment duties; (2) state and local law risk chemical facilities may in turn To Explore Additional Options in the enforcement officials that gain choose to manage compliance with Future unescorted access to restricted areas or RBPS 12(iv) themselves or to acquire the critical assets as part of their official services of other third party companies Between August 2012, and duties; and (3) emergency responders at to submit appropriate information about publication of the 60-day notice in the state or local level that gain affected individuals to the Department. March 2013, the Department had unescorted access to restricted areas or CSAT User Roles and Responsibilities substantial dialogue with key CFATS critical assets during emergency stakeholders. The discussion included situations. To minimize the burden of submitting program design issues, the CSAT In some emergency or exigent information about affected individuals, Personnel Surety application, options situations, access to restricted areas or under Options 1 and 2 (as described the Department has been considering to critical assets by other individuals who above), high-risk chemical facilities date, and additional options have not had appropriate background would have wide latitude in assigning stakeholders have recommended for the checks under RBPS 12 may be CSAT user roles to align with their Department’s consideration, both in the necessary. For example, emergency business operations and/or the business short and long term. responders not described above may operations of third parties that provide The options described in this notice require such access as part of their contracted services to them.13 and, if approved, the ICR that the official duties under appropriate Furthermore, the Department intends to Department will submit to OMB would circumstances. If high-risk chemical structure the CSAT Personnel Surety allow high-risk chemical facilities and facilities anticipate that any individuals application to allow designees of high- the Department to implement the will require access to restricted areas or CFATS Personnel Surety Program critical assets without visitor escorts or 13 CSAT user registration and the assignment of user roles within CSAT are covered under a within the Department’s existing without the background checks listed in different Information Collection (i.e., 1670–0007), statutory and regulatory authority, and RBPS 12 under exceptional which can be found at http://www.reginfo.gov/ U.S. Government watchlisting policies. circumstances (e.g., foreseeable but public/do/PRAViewICR?ref_nbr=201001-1670-007#.

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risk chemical facilities to submit check (e.g., verification of legal 12(iv) processing with these other information about affected individuals authorization to work or criminal routine procedures would allow directly to the Department on behalf of history) needs a new background check submission of personal information high-risk chemical facilities. for different companies or for a new or already collected and maintained by High-risk chemical facilities and their different purpose (e.g., change in jobs or facilities or their designees (e.g., a third designees will be able to structure their contract), third parties that routinely party, contracted service company, or CSAT user roles to submit information conduct background checks routinely third party acting on behalf of a about affected individuals to the will submit information about a person contracted service company) to the Department in several ways: again to agencies responsible for Department under RBPS 12(iv) before (1) A high-risk chemical facility could maintaining relevant information (e.g., affected individuals require access to directly submit information about state government agencies responsible restricted areas or critical assets. affected individuals, and designate one for maintaining state motor vehicle As mentioned above, third parties or more officers or employees of the databases). Therefore, for the purpose of could submit screening information to facility with appropriate CSAT user this notice, the Department’s estimation the Department on behalf of high-risk roles; and/or of burden accounts for potential chemical facilities as part of facilities’ (2) A high-risk chemical facility could multiple submissions of information routine hiring and access control ensure the submission of information about affected individuals by high-risk procedures. Some stakeholders have about affected individuals by chemical facilities and their designated expressed concerns to the Department designating one or more persons third parties. about submission of screening affiliated with a third party (or with information by third parties, suggesting Compliance With RBPS 12(iv) and the that in such cases facilities would not be multiple third parties); and/or Potential for Increased Burden To Enter (3) A company owning several high- able to adequately oversee third parties’ the Restricted Areas or Critical Assets at work to ensure appropriate information risk chemical facilities could a High-Risk Chemical Facility consolidate its submission process for submission to the Department. The affected individuals. Specifically, the Since the Department first began Department expects, however, that high- company could designate one or more seeking to implement the CFATS risk chemical facilities could audit and/ persons to submit information about Personnel Surety Program, stakeholders or review their third party designees’ affected individuals on behalf of all of have expressed concern that the information collection and submission the high-risk chemical facilities on a submission of information about processes, to ensure that their designees company-wide basis. affected individuals under Option 1 and submit appropriate information. The Department may, upon request, Option 2 to the Department would The Department has provided below also consider allowing CSAT users with impede the ability of affected several illustrative examples about how the ability to submit information about individuals to enter the restricted areas high-risk chemical facilitates or affected individuals to the Department or critical assets at high-risk chemical designees are likely to consolidate RBPS via a Web-service. The ability to submit facilities. The Department does not 12(iv) processing with routine information about affected individuals believe that if a facility complies with background check activities related to via a Web-service will be provided on RBPS 12(iv) the high-risk chemical those required by RBPS 12(i)–(iii), a case by cases basis, when in the facility will, on a routine basis, namely, (i) measures designed to verify opinion of the Department, sufficient experience an unreasonable impact in and validate identity; (ii) measures additional security and privacy allowing affected individuals access to designed to check criminal history; and safeguards have been agreed to by the restricted areas or critical assets. (iii) measures designed to verify and CSAT user.14 In general, the Department expects validate legal authorization to work. By that high-risk chemical facilities or their consolidating RBPS 12(iv) with routine Burden Resulting From the Submission designees (e.g., third parties or background check activities related to of Duplicate Records About an Affected companies employing affected RBPS 12(i)-(iii), high-risk chemical Individual individuals that provide services to facilities will likely choose to The Department is aware that an high-risk chemical facilities) will incorporate the submission of affected individual may be associated already possess much, if not all, of the information about affected individuals with multiple high-risk chemical necessary information about affected to the Department under RBPS 12(iv) facilities, and thus information about an individuals as a result of standard into the routine background check affected individual may be submitted to business practices related to activities required by RBPS 12(i)–(iii). the Department multiple times by employment or managing of service Although estimating the burden of different high-risk chemical facilities contracts. In the event that high-risk RBPS 12(i)–(iii) is not within the scope and/or their designated third parties. chemical facilities, or their designees, of this Paperwork Reduction Act notice, However, the Department has learned in need to collect any additional when and how high-risk chemical its dialogue with stakeholders information for the purpose of facilities could collect information for (including third-party companies that complying with RBPS 12(iv), they have submission to the Department has conduct background checks for high- significant flexibility in how to collect influenced the Department’s design of risk chemical facilities) that the this information since CFATS does not the CFATS Personnel Surety Program. The Department believes that the duplicate submission of records about prescribe how to do so. The Department also expects that illustrative examples provided below affected individuals is a common high-risk chemical facilities will likely show how, if the CFATS Personnel industry practice for companies when consolidate RBPS 12(iv) processing with Surety Program is implemented, a high- managing information about related routine hiring and access control risk chemical facility and its associated individuals. Specifically, when a person procedures involving background third party companies could access the who has already had a background checks that are already occurring prior CSAT Personnel Surety application for 14 A Web-service is software system designed to to access by facility personnel or purposes of submitting terrorist ties support interoperable machine-to-machine unescorted visitors to restricted areas or screening information to the Department interaction over a network. critical assets. Consolidating RBPS on its behalf under RBPS 12(iv), in

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coordination with other normal chemical facility in accordance with the and legal authorization to work business activities not required by RBPS high-risk chemical facility’s SSP or ASP. background checks could be completed 12(iv). If appropriate, based upon the results of by the company employing the resident those background checks, the employee contractor in accordance with the high- SCENARIO #1: Employees Who Are could then be determined suitable to risk chemical facility’s SSP or ASP. ‘‘Facility Personnel’’ access the high-risk chemical facility’s Æ The company employing the This scenario could apply to a high- restricted areas and/or critical assets. resident contractor could conduct these risk chemical facility that has a number The third party or the high-risk identity, criminal history, and legal of employees it deems in its SSP or ASP chemical facility could then report its authorization to work background to be ‘‘facility personnel’’ with access to suitability finding to the appropriate checks. restricted areas and/or critical assets. party at the high-risk chemical facility Æ The company employing the In its SSP or ASP, the high-risk so that facility-specific access resident contractor could submit chemical facility could choose to credentials/cards, or door/gate key(s) appropriate information, under Option 1 comply with RBPS 12(i)–(iii) for these could be granted, if appropriate. and/or Option 2, to the Department employees by either: Completion of submission of while it conducts these identity, • Hiring a third party background information about the affected criminal history, and legal authorization check company to perform identity, individual to the Department in to work background checks. criminal history, and legal authorization compliance with RBPS 12(iv) therefore • The company employing the to work background checks on these would not impede the routine access resident contractor, however, might not employees. control procedures of the high-risk perform the actual background checks Æ A contract or agreement between chemical facility because the itself. Rather, the company employing the high-risk chemical facility and the information submission would likely be the resident contractor could hire a third party could establish the criteria accomplished in concert with the other third party background check company for these background checks, and could background check activities, prior to to perform identity, criminal history, establish which background check access. and legal authorization to work results qualify individuals to access the background checks on its employees restricted areas or critical assets at the SCENARIO #2: Resident Contractors (including the resident contractors at high-risk chemical facility or disqualify Who Are ‘‘Facility Personnel’’ the high-risk chemical facility). individuals from accessing the restricted This scenario could apply to a high- Æ If the company employing the areas or critical assets at the high-risk risk chemical facility that has a number resident contractor hires a third party chemical facility. of resident contractors it deems in its background check company for this Æ The third party could submit SSP or ASP to be ‘‘facility personnel’’ purpose, a contract or agreement appropriate information, under Option 1 with access to restricted areas or critical between the company employing the and/or Option 2, to the Department assets. resident contractor and the third party while it conducts these identity, In its SSP or ASP, the high-risk background check company could criminal history, and legal authorization chemical facility could choose to establish the criteria for these to work background checks. comply with RBPS 12(i)–(iii) for background checks and could establish Æ The high-risk chemical facility resident contractors by: which background check results are could audit or review the background • Stipulating in a contract between acceptable for access to the restricted checks being conducted to ensure the high-risk chemical facility and the areas and critical assets at the high-risk contractual compliance. company employing the resident chemical facility for which the resident Or, contractors that the contractors’ contractor performs services. • Performing identity, criminal employer will perform or provide for Æ The third party background check history, and legal authorization to work identity, criminal history, and legal company could submit appropriate background checks itself. authorization to work background information, under Option 1 and/or Æ The high-risk chemical facility checks to be conducted on the resident Option 2, to the Department while it could establish the criteria for these contractors. conducts these identity, criminal background checks, and could establish Æ A contract or agreement between history, and legal authorization to work which background check results qualify the high-risk chemical facility and the background checks. individuals to access the restricted areas company employing the resident Prior to the resident contractor being or critical assets at the high-risk contractors could establish the criteria granted access to restricted areas or chemical facility or disqualify for these background checks, and could critical assets of the high-risk chemical individuals from accessing the restricted establish which background check facility (i.e., being issued a facility- areas or critical assets at the high-risk results qualify individuals to access the specific access credential/card, or door/ chemical facility. restricted areas or critical assets at the gate key(s)), identity, criminal history, Æ The facility could submit high-risk chemical facility or disqualify and legal authorization to work appropriate information, under Option 1 individuals from accessing the restricted background checks could be completed and/or Option 2, to the Department areas or critical assets at the high-risk by the company employing the resident while it conducts these identity, chemical facility. contractor, or by a third party criminal history, and legal authorization Æ The high-risk chemical facility background check company in to work background checks. could audit or review the background accordance with the high-risk chemical Prior to an employee being granted checks being conducted to ensure facility’s SSP or ASP. If appropriate, access to restricted areas or critical contractual compliance. based on the results of those background assets (i.e., prior to being issued a • Prior to a resident contractor being checks, the resident contractor could facility-specific access credential/card, granted access to the restricted areas or then be determined suitable to access or door/gate key(s)), identity, criminal critical assets of the high-risk chemical the high-risk chemical facility’s history, and legal authorization to work facility (i.e., being issued a facility- restricted areas and/or critical assets. background checks could be completed specific access credential/card, door/ The company employing the resident by the third party or the high-risk gate key(s)), identity, criminal history, contractor, or a third party background

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check company, could then report the high-risk chemical facility’s SSP or background check company, could then suitability findings to the high-risk ASP. report suitability findings to the high- chemical facility. The appropriate party Æ The company employing the risk chemical facility. The appropriate at the high-risk chemical facility could frequent unescorted visitor could party at the high-risk chemical facility then grant the resident contractor conduct these identity, criminal history, could then grant the frequent facility-specific access credentials/ and legal authorization to work unescorted visitor facility-specific cards, or door/gate key(s), if appropriate background checks. access credentials/cards, or door/gate Æ based on those suitability findings. The The company employing the key(s), if appropriate based on those submission of information about the frequent unescorted visitor could suitability findings. The submission of affected individual to the Department in submit appropriate information, under information about the affected compliance with RBPS 12(iv) therefore Option 1 and/or Option 2, to the individual to the Department in would not impede the routine access Department while it conducts these compliance with RBPS 12(iv) therefore control procedures of the high-risk identity, criminal history, and legal would not impede the routine access chemical facility because the authorization to work background control procedures of the high-risk submission of information would likely checks. chemical facility because the • The company employing the be accomplished in concert with the information submission would likely be frequent unescorted visitor, however, other background check activities, prior accomplished in concert with the other to access. might not perform the actual background checks itself. Rather, the background check activities, prior to SCENARIO #3: Frequent ‘‘Unescorted company employing the frequent access. Visitors’’ unescorted visitor could hire a third SCENARIO #4: Infrequent ‘‘Unescorted This scenario could apply to a high- party background check company to Visitors’’ risk chemical facility that has a number perform identity, criminal history, and Since the Department first began of frequent unescorted visitors that have legal authorization to work background developing the CFATS Personnel Surety or are seeking repeated access to the checks on its employees (including the Program, some stakeholders have restricted areas or critical assets of the frequent unescorted visitors that access facility, pursuant to a contractual the restricted areas or critical assets of expressed concern that the submission relationship with a company employing a high-risk chemical facility). of information to DHS about unescorted Æ If the company employing the the frequent unescorted visitors. visitors who have only rare or frequent unescorted visitor hires a third infrequent access to high-risk chemical In its SSP or ASP, the high-risk party background check company for facilities would be overly burdensome chemical facility could choose to this purpose, a contract or agreement and would make access by such comply with RBPS 12(i)–(iii) for between the company employing the frequent unescorted visitors by: infrequent unescorted visitors too frequent unescorted visitor and the third difficult. As a general matter, however, • Stipulating in a contract between party background check company could the Department does not believe it likely the high-risk chemical facility and the establish the criteria for these that many high-risk chemical facilities company employing the frequent background checks and could establish unescorted visitors that the frequent will propose in their SSPs or ASPs to which background check results are allow large numbers of visitors who unescorted visitors’ employer will acceptable for access to the restricted perform or provide for identity, criminal visit the high-risk chemical facility areas and critical assets at the high-risk infrequently to have unescorted access history, and legal authorization to work chemical facility for which the frequent background checks to be conducted on to restricted areas and critical assets, unescorted visitor performs services. because then all four types of the frequent unescorted visitors. Æ The third party background check Æ background checks listed in RBPS 12 A contract or agreement between company could submit appropriate the high-risk chemical facility and the would be required to be conducted for information, under Option 1 and/or them. High-risk chemical facilities company employing the frequent Option 2, to the Department while it unescorted visitors could establish the could choose to escort infrequent conducts these identity, criminal visitors in lieu of performing the four criteria for these background checks, history, and legal authorization to work and could establish which background types of RBPS 12 background checks on background checks. them. check results qualify individuals to Prior to the frequent unescorted access the restricted areas or critical visitor being granted access to restricted However, even for infrequent assets at the high-risk chemical facility areas or critical assets of the high-risk unescorted visitors on whom the high- or disqualify individuals from accessing chemical facility (i.e., being issued a risk chemical facility chooses to the restricted areas or critical assets at facility-specific access credential/card, conduct all four types of background the high-risk chemical facility. or door/gate key(s)), identity, criminal checks, the Department does not expect Æ The high-risk chemical facility history, and legal authorization to work data submission to the Department in could audit or review the background background checks could be completed compliance with RBPS 12(iv) to impede checks being conducted to ensure by the company employing the frequent routine access procedures because the contractual compliance. unescorted visitor, or by a third party data submission is likely to be • Prior to a frequent unescorted background check company in accomplished in concert with the other visitor being granted access to the accordance with the high-risk chemical routine hiring and access control restricted areas or critical assets of the facility’s SSP or ASP. If appropriate background checks related to RBPS facility (i.e., being issued a facility- based on the results of those background 12(i)–(iii) described above. The specific access credential/card, door/ checks, the frequent unescorted visitor Department believes that the data gate key(s)), identity, criminal history, could then be determined suitable to submission for RBPS 12(iv) will likely and legal authorization to work access the restricted areas or critical be accomplished in concert with the background checks could be completed assets at the high-risk chemical facility. routine hiring and access control by the company employing the frequent The company employing the frequent background checks related to RBPS unescorted visitor in accordance with unescorted visitor, or a third party 12(i)–(iii) because doing them in concert

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is likely to generate the potential for Æ Full Name terrorist ties vetting, chemical facilities cost savings.15 Æ Date of Birth would also have the option, where Æ Citizenship appropriate, to submit information to Additional Data Privacy Considerations Æ Passport information and/or alien the Department to electronically verify There are various privacy registration number that an affected individual is currently requirements for high-risk chemical To reduce the likelihood of false enrolled in one of the following DHS facilities, their designees, and the positives in matching against records in programs: the federal government’s consolidated Department related to the exchange of • TWIC Program; personally identifiable information (PII) and integrated terrorist watchlist, high- • HME Program; for the CFATS Personnel Surety risk chemical facilities would also be • Program. Upon receipt of PII, the able to submit the following optional Trusted Traveler Programs, Department complies with all information about affected individuals including: applicable federal privacy requirements to the Department: Æ NEXUS; including those contained in the Privacy • Aliases Æ FAST; • Gender (for Non-U.S. Persons) Æ Act, the E-Government Act, the • SENTRI; and Homeland Security Act, and Place of Birth • 18 Æ Global Entry. Departmental policy. The United States Redress Number If a high-risk chemical facility chooses Information collected by the also follows international instruments to submit information about an affected Department about affected individuals on privacy, all of which are consistent individual under Option 1, the under Option 2 would not be used to with the Fair Information Practice following table summarizes the conduct duplicative vetting against the Principles (FIPPs).16 High-risk chemical biographic data that would be submitted federal government’s consolidated and facilities, or their designees, are to the Department. integrated terrorist watchlist. responsible for complying with the federal, state, and national privacy laws To verify an affected individual’s TABLE 1—AFFECTED INDIVIDUAL RE- applicable to the jurisdictions in which enrollment in one of these programs they do business. The Department QUIRED AND OPTIONAL DATA UNDER under Option 2, the Department would believes that high-risk chemical OPTION 1 collect the following information about facilities, or their designees, have the affected individual: • multiple, established legal avenues that Data elements For a U.S. For a Full Name; submitted to non-U.S. • enable them to submit PII to the the department person person Date of Birth; and Department, which may include the • Program-specific information or Safe Harbor Framework,17 and meet Full Name ...... Required. credential information, such as unique their privacy obligations. Date of Birth ... Required. number, or issuing entity (e.g., State for Gender ...... Must provide Optional. II. Information Collected About Commercial Driver’s License (CDL) Citizenship associated with an HME). Affected Individuals or Gender. Citizenship ...... Required. To further reduce the potential for Option 1: Collecting Information To Passport Infor- N/A ...... Required. misidentification, high-risk chemical Conduct Direct Vetting mation and/ facilities may also submit the following If high-risk chemical facilities select or Alien optional information about affected Option 1 to satisfy RBPS 12(iv) for any Registration individuals to the Department: affected individuals, the following Number. • Aliases ...... Optional. Aliases information about these affected Place of Birth Optional. • Gender individuals would be submitted to the Redress num- Optional. • Place of Birth Department: ber. • • For U.S. Persons (U.S. citizens and Citizenship If a high-risk chemical facility chooses nationals as well as U.S. lawful Option 2: Collecting Information To Use permanent residents): to submit information about an affected Æ Vetting Conducted Under Other DHS individual under Option 2, the Full Name Programs Æ Date of Birth following table summarizes the Æ Citizenship or Gender In lieu of submitting information to biographic data that would be submitted • For Non-U.S. Persons: the Department under Option 1 for to the Department.

TABLE 2—AFFECTED INDIVIDUAL REQUIRED AND OPTIONAL DATA UNDER OPTION 2

For affected individual enrolled in Data elements For affected individual with a For affected individual with an a trusted traveler programs submitted to the TWIC HME (NEXUS, SENTRI, FAST, or department global entry)

Full Name ...... Required.

15 This ICR does not estimate the potential cost 16 Examples of the international privacy European Commission in order to provide a savings high-risk chemical facilities or their instruments which the United States has endorsed streamlined means for U.S. organizations to comply designees could achieve as a result of submitting are: (1) Organization for Economic Cooperation and with the European Union Data Protection Directive data in concert with the other routine hiring and Development (OECD) Guidelines on the Protection 95/46/EC. More information on the Safe Harbor access control background checks related to RBPS of Privacy and Trans-border Flows of Personal Data Framework can be found at http://export.gov/ 12(i)–(iii) because the scope of this ICR is limited (1980), and (2) Asia Pacific Economic Cooperation to the Departments obligation to estimate the safeharbor. burden of submitting information about affected (APEC) Privacy Framework (2004). 18 For more information about Redress Numbers, individuals to identify terrorist ties under RBPS 17 The Safe Harbor Framework, which applies to please go to http://www.dhs.gov/one-stop-travelers- 12(iv) in accordance with the Paperwork Reduction commercial information, was developed by the U.S. redress-process#1. Act. Department of Commerce in consultation with the

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TABLE 2—AFFECTED INDIVIDUAL REQUIRED AND OPTIONAL DATA UNDER OPTION 2—Continued

For affected individual enrolled in Data elements For affected individual with a For affected individual with an a trusted traveler programs submitted to the TWIC HME (NEXUS, SENTRI, FAST, or department global entry)

Date of Birth ...... Required. Expiration Date ...... Required. Unique Identifying Number ...... TWIC Serial Number: Required ... CDL Number: Required ...... PASS ID Number: Required. Issuing State of CDL ...... N/A ...... Required ...... N/A. Aliases ...... Optional. Gender ...... Optional. Place of Birth ...... Optional. Citizenship ...... Optional.

Under the CFATS Personnel Surety individual’s information has been The Department will also collect Program, a high-risk chemical facility confirmed as a match to a record of an administrative or programmatic would be able to choose to follow the individual with terrorist ties. information (e.g., affirmations or process described for Option 1, and In the event that a confirmed match certifications of compliance, extension would not have to implement Option 2, is identified as part of the CFATS requests, brief surveys for process even if an affected individual seeking Personnel Surety Program, the improvement) necessary to manage the access to the high-risk chemical facility Department may obtain references to CFATS Personnel Surety Program. is already enrolled in the TWIC and/or information from other Under Options 1 and 2, the Program, HME Program, or one of the government law enforcement and Department will also collect information Trusted Traveler Programs. intelligence databases, or other relevant that will allow high-risk chemical facilities and their designees to manage Option 3: Electronic Verification of databases that may contain terrorism information. their data submissions. Specifically, the TWIC Department will make available to high- The Department may collect Under Option 3, a high-risk chemical risk chemical facilities and their information necessary to assist in the facility would not need to submit designees blank data fields. These blank submission and transmission of records, information about an affected individual data fields may be used by a high-risk including electronic verification that the enrolled in the TWIC Program to the chemical facility or its designees to Department has received a particular Department, if the high-risk chemical assign each record of an affected record. facility is able to electronically verify individual a unique designation or and validate the affected individual’s The Department may also collect number that is meaningful to the high- TWIC through the use of a TWIC reader information about points of contact who risk chemical facility. Collecting this (or other technology that is periodically the Department or federal law information will enable a high-risk updated with revoked card enforcement personnel may contact chemical facility to manage the information). with follow-up questions. A request for electronic records it submits into the As discussed above, under the CFATS additional information from the CSAT Personnel Surety application. Personnel Surety Program, high-risk Department does not imply, and should Entering this information into the CSAT chemical facilities would also be able to not be construed to indicate, that an Personnel Surety application will be choose to follow the processes described individual is known or suspected to be voluntary, and is intended solely to for Option 1 and/or Option 2, for some associated with terrorism. enable high-risk chemical facilities and or all affected individuals already The Department may also collect their designees to search through, sort, enrolled in the TWIC Program, in lieu information provided by individuals or and manage the electronic records they of or in addition to Option 3. high-risk chemical facilities in support submit. of any adjudications requested under Other Information Collected Subpart C of the CFATS regulation,19 or III. Request for Exception to the In addition to the information about in support of any other redress Requirement Under 5 CFR 1320.8(b)(3) affected individuals collected under requests.20 The Department is requesting from Options 1 and 2, the Department plans The Department may request OMB an exception for the CFATS to collect certain information that information pertaining to affected Personnel Surety Program to the PRA identifies the high-risk chemical facility, individuals, previously provided to the notice requirement in 5 CFR or facilities, at which each affected Department by high-risk chemical 1320.8(b)(3), which requires federal individual has or is seeking access to facilities or their designees, in order to agencies to confirm that their restricted areas or critical assets. confirm the accuracy of that information collections provide certain The Department may also contact a information, or to conduct data accuracy reasonable notices under the PRA to high-risk chemical facility or its reviews and audits as part of the CFATS affected individuals. If this exception is designees to request additional Personnel Surety Program. granted, the Department will be relieved information (e.g., visa information) of the potential obligation to require pertaining to affected individuals in 19 See 6 CFR 27.300–345. high-risk chemical facilities to collect order to clarify suspected data errors or 20 More information about access, correction, and signatures or other positive affirmations resolve potential matches (e.g., in redress requests under the Freedom of Information of these notices from affected situations where an affected individual Act and the Privacy Act can be found in Section individuals. Whether or not this 7.0 of the Privacy Impact Assessment for the CFATS has a common name). Such requests Personnel Surety Program, dated May 4, 2011, and exception is granted, Submitters must will not imply, and should not be available at http://www.dhs.gov/xlibrary/assets/ affirm that the required privacy notice construed to indicate, that an affected privacy/privacy-pia-nppd-cfats-ps.pdf. regarding the collection of personal

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information has been provided to necessary for the proper performance of provide other pieces of information affected individuals before personal the functions of the agency. pertaining to affected individuals information is submitted to the including visa information, the Comments Related to the Accuracy of Department.21 submission and transmission of records the Agency’s Estimate of the Burden of such as electronic verification that the The Department’s request for an the Proposed Collection of Information, exception to the PRA notice facility provided a particular record, Including the Validity of the points of contact at a facility, and requirement under 5 CFR 1320.8(b)(3) Methodology and Assumptions Used would not exempt high-risk chemical information supporting any facilities from having to adhere to Comment: Several commenters adjudications or redress requests. applicable federal, state, local, or tribal suggested that the annual turnover rate Response: In the 60-day notice, laws, or to regulations or policies of 71% for frequent unescorted visitors Department estimated the average time pertaining to the privacy of affected estimated by the Department in the 60- per respondent to be 0.54 hours. The individuals. day notice underestimated the annual Department believes that the burden turnover rate for delivery personnel.23 associated with requests from the IV. Responses to Comments Submitted One commenter suggested that the Department for additional information During 60-Day Comment Period Department adopt a higher annual about the affected individuals will be The Department solicited comments turnover rate of 81.75% for all frequent very rare and thus de minimus in on four questions: unescorted visitors. nature. The Department also believes (1) Evaluate whether the proposed Response: The Department agreed to that the burden associated with collection of information is necessary adopt the higher estimated rate for information requests to support for the proper performance of the frequent unescorted visitor annual adjudication or redress requests will functions of the agency, including turnover of 81.75%. The Department’s also be very rare and thus de minimus whether the information will have burden estimates reflect this revised as well. Finally, the Department will practical utility; assumption. collect submission and transmission of (2) Evaluate the accuracy of the Comment: One commenter suggested records, including electronic agency’s estimate of the burden of the that the Department made an error in verification that the Department has proposed collection of information, Table 18 of the 60-day notice by not received a particular record, including the validity of the differentiating between the turnover automatically via system log files. This collection will not impose a burden on methodology and assumptions used; rates of employees, frequent visitors, and infrequent visitors. the high-risk chemical facility or (3) Enhance the quality, utility, and Response: In this notice, the designee. Therefore, for the reasons clarity of the information to be Department explicitly distinguishes the expressed above, the Department collected; and turnover rates of employees, frequent believes it has accurately estimated the (4) Minimize the burden of the visitors, and infrequent visitors when estimated time per respondent. collection of information on those who estimating the annual burden estimate. Comment: One commenter states that are to respond, including through the Comment: One commenter suggested the Department did not account for the use of appropriate automated, that the Department did not accurately cost facilities will incur for a ‘‘facility- electronic, mechanical, or other estimate the annual burden estimate in by-facility vetting of individuals technological collection techniques or Table 19 of the 60-day notice. accessing multiples facilities.’’ other forms of information technology, Specifically, the commenter suggested Response: As mentioned earlier in e.g., permitting electronic submissions that Table 19 of the 60-day notice this notice, the Department is aware that of responses. reflects a figure ‘‘0.50’’ hours for initial an affected individual may be associated In response to the 60-day notice that submission rather than ‘‘0.5425’’ hours with multiple high-risk chemical solicited comments about the CFATS which was the estimated time per facilities, and thus information about an Personnel Surety Program ICR, the respondent calculated in Table 18 of the affected individual may be submitted to Department received 28 comments from 60-day notice. the Department multiple times by 2 private citizens, 8 private sector Response: The Department disagrees different high-risk chemical facilities companies 22, 14 trade associations, 1 and believes that in Table 19 it was and/or their designated third parties. union, 1 training council, and the accurate to use the figure ‘‘0.50’’ hours Therefore, for the purposes of this Ranking Member of the House of when estimating the annual burden. The notice, the Department’s estimation of Representatives Committee on figure 0.50 hours is distinct and is only burden accounts for the notion that an Homeland Security. associated with initial submission and affected individual’s information may be submitted by multiple times by high- Comments Related to Whether the not the other types of transactions risk chemical facilities and their Proposed Collection of Information is covered by the ICR such as updates, corrections, and removals. The figure designated third parties. Necessary for the Proper Performance of Comment: Several commenters the Functions of the Agency, Including 0.5425 hours represented the weighted average of all types of transactions and objected to the Department’s Whether the Information Will Have assumptions related to the potential Practical Utility thus would have been inappropriate to use in Table 19 of the 60-day notice recordkeeping burden associated with The Department did not receive any when estimating the annual burden. RBPS 12(iv). Namely, they objected to comments suggesting that the proposed Comment: One commenter suggested the idea that no potential recordkeeping collection of information was not that the Department did not account for should be estimated in this notice in costs imposed by information accordance with 5 CFR 1320.3(b)(2), 21 For more information, please see the Privacy submission requests the Department which directs federal agencies to not Impact Assessment for the CFATS Personnel Surety may require. Specifically, when the count the costs associated with the time, Program, dated May 4, 2011 and available at effort, and financial resources incurred http://www.dhs.gov/xlibrary/assets/privacy/ Department ‘‘may’’ require facilities to privacy-pia-nppd-cfats-ps.pdf. in the normal course of their activities 22 One private sector company submitted two 23 See Table 6 in the 60-day notice published on (e.g., in compiling and maintaining distinct comments. March 22, 2013 at 78 FR 17690. business records) if the reporting,

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recordkeeping, or disclosure activities may be submitted, under Option1 or determined from the CCL by using an are usual and customary. Furthermore, Option 2, through CSAT to the electronic card reader to compare the commenters objected to the Department. TWIC’s Federal Agency Smart Department’s belief that the types of Comment: One commenter requested Credential Number (FASC–N) to those recordkeeping associated with RBPS specific information about the security listed on the CCL. This could be 12(iv) are usual and customary costs or information protection requirements accomplished by periodically that high-risk chemical facilities would necessary to serve as a Submitter. downloading the current CCL from the incur to conduct background checks for Response: While an owner or operator Internet to either a TWIC reader or a identity, criminal history, and legal of a chemical facility may designate Physical Access Control System authorization to work as required by someone to submit information on its (PACS).24 The status of a TWIC can also RBPS 12(i)–(iii) and also by various behalf, the owner or operator is be confirmed by using a TWIC reader or other federal, state, or local laws or responsible for satisfying all the PACS to check the Certificate regulations. requirements of 6 CFR 27.230(a)(12)(iv). Revocation List (CRL) for TWIC cards. Response: As mentioned earlier in The Department provides at 6 CFR The Department will also consider, in this notice, the Department expects that 27.200(b)(3) that any such submitter an SSP or ASP, any other specific high-risk chemical facilities or their must be an officer of the corporation or innovative technologies that could designees (e.g., third parties or other person designated by an officer of allow high-risk chemical facilities to companies employing affected the corporation, and must be domiciled leverage the CCL or CRL for compliance individuals that provide services to in the United States, and is responsible with RBPS 12. high-risk chemical facilities) will for attesting to the accuracy of the already possess much, if not all, of the submitted information. Other Comments Submitted in Response necessary information about affected When a high-risk chemical facilities to the Information Collection Request individuals as a result of standard relies on third party companies to Comment: Several commenters business practices related to submit appropriate information about suggested the Department develop employment or managing of service affected individuals to the Department substantially different processes than contracts. Furthermore, the Department the same requirements will apply. The the processes described by the also expects that high-risk chemical submitter(s) must be designated by an Department in the CFATS IFR facilities will likely consolidate RBPS officer of the corporation, must be published in April 2007. One 12(iv) processing with related routine domiciled in the United States, and is commenter suggested that the hiring and access control procedures responsible for attesting to the accuracy Department establish a process to certify involving background checks that are of the submitted information. vendors so that high-risk chemical already occurring prior to access by facilities could rely on the certification Comments Related to Minimizing the facility personnel or unescorted visitors as proof that the vendor has Burden of the Collection of Information to restricted areas or critical assets. implemented security measures to on Those Who are to Respond, Consolidating RBPS 12(iv) processing ensure that its employees do not have Including Through the Use of with these other routine procedures terrorist ties. Several commenters Appropriate Automated, Electronic, would allow submission of personal suggested establishing a voluntary information already collected and Mechanical, or Other Technological process by which the Department could maintained by facilities or their Collection Techniques or Other Forms of collect information directly from designees (e.g., a third party, contracted Information Technology, e.g., Permitting affected individuals, and subsequently service company, or third party acting Electronic Submissions of Responses issue individuals unique submission on behalf of a contracted service Comment: One commenter requested numbers. The commenters suggested company) to the Department under the ability to submit information about that an affected individual could then RBPS 12(iv). In this notice, the affected individuals ‘‘via some type of present the unique submission number Department provides several illustrative file (spreadsheet) upload as opposed to to the high-risk chemical facility as examples to further clarify the direct data entry into CSAT.’’ evidence that the Department had Department’s continued belief that the Response: When implemented, high- conducted a security threat assessment types of recordkeeping associated with risk chemical facilities (and their to determine whether or not they had RBPS 12(iv) are usual and customary designees), under Option 1 and Option any terrorist ties. costs that high-risk chemical facilities 2, will have the ability to input records Response: Neither the notice (or designees) would incur to conduct about affected individuals in three published by the Department on March background checks for identity, criminal ways: (1) Manual entry, (2) bulk upload 22, 2013, nor this notice are rulemaking history, and legal authorization to work via Microsoft Excel file or an Extensible notices. These notices are published in as required by RBPS 12(i)–(iii). Markup Language (XML) file, and (3) a accordance with the Paperwork direct Web Service connection. Reduction Act and are not seeking to Comments Related to the Quality, Comment: One commenter requested expand or change CFATS. Rather, these Utility, and Clarity of the Information to clarification about Option 3, Paperwork Reduction Act notices are be Collected specifically, if the phrase ‘‘other seeking comments on the burden Comment: One commenter requested technology’’ means computer access to associated with collecting information specifics about the mechanics of the the Internet. necessary to implement the CFATS process on how to submit information Response: The Department’s phrase Personnel Surety Program described in about affected individuals to the ‘‘other technology which is periodically the CFATS IFR. Department. updated using the CCL’’ was intended to Comment: One commenter suggested Response: The Department will cover a variety of ways a high-risk that the Department’s ‘‘preconditions’’ publish a user manual when the CFATS chemical facility could, in its SSP or (i.e., the collection of information under Personnel Surety Program is ASP, describe how it would determine Option 2 to verify enrollment in the implemented. The user manual will if a TWIC was revoked for cause, or TWIC, HME, and Trusted Traveler contain the necessary details about how revoked because it was reported lost or information about affected individuals stolen. Revoked cards could be 24 See footnote 8, supra.

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Programs) ‘‘ipso facto do not provide verified, the existing STA is leveraged enrollments in the TWIC, HME, and reciprocal recognition of these vetting for the HME, which provides for Trusted Traveler Programs. programs.’’ The commenter further efficiencies such as reduced enrollment Response: While visual inspection has suggested that the Department was not cost and shorter processing time. some security benefits, electronic following White House Comment: Several commenters verification is significantly more reliable recommendations to promote suggested that the collection of than visual inspection for ensuring that comparability and reciprocity across information under Option 2 to verify an a TWIC, HME, or Trusted Traveler credentialing and screening programs.25 affected individual’s enrollment in the Credential is not counterfeit or expired, Specifically, recommendation 16 of the TWIC, HME, and the Trusted Traveler or has not been reported lost, stolen, Surface Transportation Security Priority Programs qualifies as a duplicative damaged, or revoked. Accordingly, if a Assessment, which recommends that background check. high-risk chemical facility chooses to the federal Government ‘‘create a more Response: The information collected implement Option 2, the high-risk efficient Federal credentialing system by by the Department under Option 2 is chemical facility (or its designees) must reducing credentialing redundancy, used to verify an affected individual’s submit information to the Department leveraging existing investments, and enrollment in a DHS program. The about affected individuals possessing implementing the principle of ‘enroll information collected under Option 2 is the appropriate credentials to enable the once, use many’ to reuse the not used to conduct a duplicative Department to electronically verify, information of individuals applying for background check. with the relevant component of DHS multiple access privileges.’’ Comment: Another commenter (i.e., CBP or TSA) using their Response: The collection of suggested that the collection of authoritative and original data, the information under Option 2 to verify information under Option 2 from affected individuals’ enrollments in enrollment of an affected individual in affected individuals in possession of an these other programs. the TWIC, HME, and the Trusted HME as a proposal to ‘‘screen drivers Comment: Several commenters Traveler Programs does recognize and carrying hazardous materials’’ violates suggested that the Department was leverage the vetting activities of the 49 U.S.C. 5103a(g)(1)(B)(i) which states requiring all visitors to have their TWIC, HME, and Trusted Traveler that ‘‘[a]n individual with respect to information submitted to the Programs. Further, the CFATS whom the Transportation Security Department 48 hours in advance of Personnel Surety Program aligns with Administration—(I) has performed a entering the site, which does not the recommendations of the Surface security threat assessment under this comport with the operational realities of Transportation Security Priority section; and (II) has issued a final the trucking industry. Assessment. notification of no security threat, is Response: The Department disagrees In discussions with high-risk deemed to have met the requirements of that this ICR does not comport with the chemical facilities over the past several any other background check that is operational realities of the trucking years, the Department has attempted to required for purposes of any Federal law industry. The Department disagrees for correct the persistent misinterpretation applicable to transportation workers if four reasons. First, if a high-risk held by commenters about the concept that background check is equivalent to, chemical facility chooses to allow of ‘‘enroll once, use many’’ as meaning or less stringent than, the background visitors (e.g., truck operators) access to that an individual should only need to check required [to receive an HME].’’ the high-risk chemical facilities, for only submit information to the Department Response: Collecting information to those visitors with unescorted access to once, and that the Department should verify an affected individual’s restricted areas or critical assets will the never collect information from that enrollment, so that if verified the facility need to comply with RBPS 12. individual again. Rather, the Department may rely on the results of Second, the Department does not Department has defined, and continues the security threat assessment already believe it likely that many high-risk to define, the ‘‘enroll once, use many’’ performed and being recurrently chemical facilities will propose in their concept as the ability to reuse performed, is not prohibited by 49 SSPs or ASPs to allow large numbers of previously submitted program U.S.C. 5103a(g)(1)(B)(i), and comports visitors who visit the high-risk chemical enrollment information and/or vetting with the means of vetting verification facility infrequently to have unescorted results upon collection of sufficient described in the CFATS IFR. access to restricted areas and critical information to confirm an individual’s Comment: One commenter suggested assets, because then all four types of prior enrollment in a Department that the credentials be accepted ‘‘at face background checks listed in RBPS 12 program or prior vetting results. value.’’ The commenter further would be required to be conducted for One example of how the Department suggested that, ‘‘[t]he fact [that affected them. If the historical practice of a has implemented ‘‘enroll once, use individuals] have a valid card meets the chemical facility has been to allow many’’ in a DHS program other than the requirement specifically detailed in unescorted visitors access to the CFATS Personnel Surety Program is RBPS 1[2] and any further collection restricted areas or critical assets, when a person whose is enrolled in the and submission of PII not only exceeds without performing any background TWIC Program seeks to obtain an HME. DHS’ authority but results in checks on them, the Department TSA collects sufficient information from duplication of effort and unnecessary recognizes that the business practices of the person enrolled in the TWIC cost to both the facilities and to DHS.’’ such a high-risk chemical facility will Program to verify the person’s identity Another commenter suggested that need to change as a result of RBPS 12(i), and verify the existence of a current and possession of a credential was ‘‘proof’’ (ii), (iii), and (iv). Third, the Department valid security threat assessment.26 If that the affected individual was vetted generally expects that high-risk and is being revetted for terrorist ties. chemical facilities and designees will 25 Recommendation 16 of the Surface Another commenter took an opposing likely consolidate RBPS 12(iv) Transportation Security Priority Assessment may be view, and supported Option 2. The processing with related routine hiring found on page 21 of the 2010 White House report commenter agreed with the and access control procedures already at http://www.whitehouse.gov/sites/default/files/ rss_viewer/STSA.pdf. Department’s intention to collect occurring prior to access by facility 26 The online form may be found at https:// information to electronically verify and personnel or unescorted visitors to hazprints.tsa.dhs.gov/Public/STAStatus.aspx re-verify affected individuals’ restricted areas or critical assets. As a

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result of discussions with industry than 48 hours prior to the affected individuals eligible to apply for a TWIC. stakeholders the Department individual obtaining access to the The commenters uniformly suggested understands that, in general, routine restricted areas or critical assets at the that the Department expand the hiring and access control procedures are high-risk chemical facility. The population of individuals eligible to already in place for individuals, likely Department believes that 48 hours is a apply for a TWIC to include affected to be designated as affected individuals reasonable amount of time, which is individuals that have or are seeking because of access to restricted areas or necessary for the Department to access to the restricted areas or critical critical assets, working on behalf of successfully perform a background assets of high-risk chemical facilities. trucking companies. Fourth, in the check for terrorist ties. Therefore the Response: Any determination the default schedule provided later in this Department has suggested a period of Department or TSA makes to expand or notice, the Department suggests that time (i.e., 48 hours) as a default for revise the population of individuals information about a new affected when high-risk chemical facilities could eligible to apply and pay for TWICs is individual could be provided to the submit information to the Department outside the scope of this notice. Department no later than 48 hours prior for new affected individuals rather than Comment: Some commenters to that affected individual obtaining at the time, or after the time, a new supported the Department’s access to the restricted areas or critical affected individual obtains access to determination that certain groups are assets at a high-risk chemical facility. restricted areas or critical assets. Later not affected individuals, specifically, (1) The Department would like to highlight in this notice, the Department also Federal officials that gain unescorted that information about a particular reiterates that it will consider access to restricted areas or critical affected individual does not need to be alternative schedules suggested by high- assets as part of their official duties; (2) re-submitted to the Department 48 hours risk chemical facilities in their SSPs or state and local law enforcement officials prior to each instance of access by that ASPs, for Option 1 or Option 2, based that gain unescorted access to restricted particular affected individual. Rather, if on their unique circumstances. areas or critical assets as part of their a high-risk chemical facility, or its Comment: Several commenters official duties; and (3) emergency designees, are able to determine that an expressed concern about contractors responders at the state or local level that affected individual requires repeated and visitors arriving upon short or no gain unescorted access to restricted access to restricted areas or critical notice such as when a production unit areas or critical assets during emergency assets, the high-risk chemical facility goes down or otherwise requires situations. One commenter did not may structure the data submission to emergency maintenance. support the determination and CSAT so as to indicate that the affected Response: The Department suggested that this determination only individual about whom the high-risk understands that contractors and incentivized terrorists to assume the chemical facility or designee is visitors may arrive with only short or no identities of law enforcement officials submitting information to the notice such as when a production unit rather than workers. Department will have access to goes down or otherwise requires Response: The Department has opted restricted areas or critical assets on an emergency maintenance. The to align how CFATS treats certain ongoing basis. A high-risk chemical Department described, in the illustrative groups of persons with how those same facility, or its designees, may also examples provided earlier in this notice, populations are treated under the TWIC structure the data submission to CSAT how a high-risk chemical facility could Program.29 to indicate that the affected individual comply with RBPS 12, ensuring that all Comment: One commenter objected to will have access to restricted areas or four background checks are conducted the inclusion of railroad employees as critical assets for a discreet period of in such situations. High-risk chemical potentially affected individuals. time. facilities should describe in their SSP or Response: Railroad employees may be Therefore, for the reasons provided ASP the procedures and process 27 to affected individuals if the high-risk above, the Department disagrees that plan for and prepare for exceptional chemical facility has defined railroad this ICR does not comport with the circumstances (e.g., unpredictable but employees in their SSP or ASP as either operational realities of the trucking foreseeable situations) that result in (1) facility personnel who have access, industry. situations that require an affected either unescorted or otherwise, to Comment: Several commenters raised individual to have short or no notice restricted areas or critical assets, or (2) objections to submitting a new affected before accessing the restricted areas or unescorted visitors who have access to individual’s information at least 48 critical assets at high-risk chemical restricted areas or critical assets. hours prior to their access to restricted facilities such as when a production Each high risk chemical facility can areas or critical assets at high-risk unit goes down or otherwise requires choose which option or options it chemical facilities. Some commenters emergency maintenance. wishes to implement with regard to suggested that submission of a new Comment: Several commenters railroad employees that would be affected individual’s information should pointed out to the Department that TSA occur, rather, only at the time the new affected individuals. The Department recently modified the TWIC application notes that many railroad employees affected individual actually accesses form 28 to expand the population of restricted areas or critical assets. have TWICs and encourages high-risk chemical to consider whether Option 2 Alternatively, some commenters 27 One example applied from the illustrative or Option 3 may provide a reasonable suggested that that submission of a new scenarios would be that the high-risk chemical affected individual’s information should facility would have in it contract clauses that solution. occur after the affected individual require any contractors that provides emergency Comment: One commenter suggested repair or maintenance to have background checks accessed restricted areas or critical that the 60-day notice was unclear as to completed prior to arrival at the high-risk chemical which set of individuals would be assets. facility, to include the submission of information Response: The Department, in the about the affected individuals to the Department subject to vetting for terrorist ties. The default schedule provided later in this under Option 1 or Option 2. 28 The revised TWIC application form may be 29 See 33 CFR 101.514 at (http://www.ecfr.gov/cgi- notice, suggests that information about viewed at (http://www.reginfo.gov/public/do/ bin/retrieveECFR?gp=1&SID=ef5225aac07 new affected individuals could be PRAViewIC?ref_nbr=201210-1652-001&icID eddf7f914e57c3fda36bf&ty=HTML&h=L&r=PART& provided to the Department no later =182269). n=33y1.0.1.8.49#33:1.0.1.8.49.5.26.4)

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commenter pointed out that the modify 6 CFR part 27. The ICR and notice, the Department is not seeking to Department used the term ‘‘affected associated notices provide descriptions implement a new regulation. Rather, individuals’’ inconsistently. In parts of of the nature of the CFATS Personnel this notice is published in accordance the 60-day notice, the Department Surety Program’s information collection, with the Paperwork Reduction Act. described the term to mean ‘‘facility categories of respondents, estimated The Department disagrees that a personnel or unescorted visitors with burden, and costs. The Department is default expectation that high-risk access to restricted areas or critical publishing this notice in accordance chemical facilities or designees submit assets at high-risk chemical facilities.’’ with the Paperwork Reduction Act information about new affected In other parts of the 60-day notice the because, although the Department has individuals at least 48 hours in advance Department described the term to mean the authority to implement the CFATS of access eliminates a high-risk facility’s ‘‘(1) facility personnel who have access, Personnel Surety Program, the flexibility to achieve compliance with either unescorted or otherwise, to Department must still comply with the RBPS–12. A high-risk chemical facility restricted areas or critical assets, and (2) Paperwork Reduction Act and its may suggest alternative schedules, for unescorted visitors who have access to implementing regulations before Option 1 or Option 2, based on their restricted areas or critical assets.’’ collecting the necessary information unique circumstances in their SSPs or Response: 6 CFR 27.230(a)(12) defines from high-risk chemical facilities or ASPs. the scope of individuals for whom RBPS designees. The Department also disagrees that 12 (and thus RBPS 12(iv)) background Comment: One commenter suggested the ‘‘submission of PII on valid TWIC, checks are required. 6 CFR 27.230(a)(12) that the three options described in the DOT HAZMAT, or Trusted Traveler defines the scope as ‘‘facility personnel, 60-day notice are an impermissible card holders’’ violates Section 550. The and as appropriate, for unescorted mandate. The commenter states that CFATS Personnel Surety Program will visitors with access to restricted areas or RBPS 12 does not require that a facility not exceed the Department’s statutory critical assets’’ at high-risk chemical continuously vet covered individuals authority, nor will it violate or conflict facilities. The Department has provided against the TSDB. with Section 550 because the additional clarity in previous notices Response: In April 2007, the CFATS Department will provide and approve that affected individuals are (1) facility IFR outlined two options, described sufficient alternative methods for a personnel who have access, either earlier in this notice, for high-risk high-risk chemical facility to satisfy the unescorted or otherwise, to restricted chemical facilities to identify terrorism ties background check portion areas or critical assets, and (2) individuals with terrorist ties. Both of RBPS 12. A high-risk chemical unescorted visitors who have access to options rely on recurrent vetting, which facility does not have to select Option restricted areas or critical assets. was one of the underlying bases for 2. Rather, if a high-risk chemical facility In response to public comments including those options in the CFATS or its designees is unable or unwilling received on earlier notices, the IFR. to submit information about affected Department clarified, and does so here Comment: Several commenters individuals to verify their enrollment, a in this notice, that individual high-risk suggested that the CFATS Personnel high-risk chemical facility may select facilities may classify particular Surety Program outlined in the ICR Option 1, Option 3, or propose another contractors or categories of contractors exceeds the Department’s statutory alternative. either as ‘‘facility personnel’’ or as authority, because the proposed CFATS The Department also notes the ‘‘visitors.’’ This determination should be Personnel Surety Program design commenter’s use of the term ‘‘valid.’’ a facility-specific determination, and conflicts with Section 550. Commenters Collection of information is necessary should be based on facility security, suggested that the CFATS Personnel under Option 2 because it would be operational requirements, and business Surety Program’s design eliminates a inappropriate to have confidence in the practices. high-risk facility’s flexibility to achieve validity of a credential based solely on Comment: One commenter objected to compliance with RBPS–12. The a visual inspection of the credential. the Department’s intention to collect commenters cited the following Electronic verification of the affected information that identifies the high-risk examples: (1) The ‘‘48-hour rule,’’ (2) individuals’ enrollments in other chemical facility or facilities at which ‘‘submission of PII on valid TWIC, DOT programs provides significantly greater each affected individual has or is HAZMAT, or Trusted Traveler card confidence that the credential in the seeking access. holders,’’ and (3) ‘‘notification when possession of the affected individual is Response: The Department requires personnel depart a regulated site[.]’’ not counterfeit or expired, or has not this information so that in the event of Response: The CFATS Personnel been reported lost, stolen, damaged, or a positive match, the Department may Surety Program will not exceed the revoked. provide the information to appropriate Department’s statutory authority, nor Finally, the Department disagrees that federal law enforcement entities. will it violate or conflict with Section ‘‘notification when personnel depart a Comment: One commenter suggested 550. With respect to the specific regulated site’’ violates Section 550. The that the ICR approach was deficient examples cited by commenters, the CFATS Personnel Surety Program does because the Department, based on Department does not believe these not require ‘‘notification when public comments received, is unable to examples demonstrate a violation of the personnel depart a regulated site.’’ amend the text of 6 CFR part 27. The statutory requirement that the Rather the Department requires commenter suggested that without the Department not disapprove a Site notification when an affected individual benefit of a rule published in the Code Security Plan on the basis of the whose information has been submitted of Federal Regulations, covered facilities presence or absence of a particular under Option 1 or Option 2 no longer will not know what identifying security measure. has access to restricted areas or critical information is to be provided on Not only does the Department assets. This distinction is important— individuals, and within what disagree that 48-hour advance the Department has not suggested that it timeframes thus rendering the standards submission violates Section 550, the expects high-risk chemical facilities to for personnel surety invisible. Department also disagrees with the update the information it sends to DHS Response: The ICR and the associated characterization of the default schedule through CSAT in real time as 60-day and 30-day notices do not as a ‘‘rule.’’ As discussed earlier in this individuals depart the workplace, nor

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has it suggested that notifications are validate an affected individual’s TWIC, implementation of the CFATS Personnel required under Option 3 or under any through the use of TWIC readers (or Surety Program, if (A) the Department other options high-risk chemical other technology which is periodically learns through interactions with CFATS facilities might propose to DHS in their updated with revoked card stakeholders that a reasonable SSPs or ASPs. Notifications about information), rather than submitting percentage of affected individuals individuals whose information has been information about the affected participate in the IAC and CCSP submitted to DHS under Option 1 and individual to the Department. programs, and (B) there is substantial Option 2, and who will subsequently Consequently, there is no need for a interest from members of the regulated lose access to restricted areas or critical high risk chemical facility to notify the community in leveraging the IAC and assets, could occur before or after access Department when the affected CCSP programs, then NPPD may is lost—high-risk facilities could individual no longer has access if the consider allowing high-risk chemical propose schedules for this type of affected individual’s TWIC is facilities to submit the full name, date notification to DHS in their SSPs or electronically verify and validated, of birth, and appropriate program- ASPs, and DHS would evaluate these through the use of TWIC readers (or specific information or credential proposals on a case-by-case basis, taking other technology which is periodically information necessary to enable the into account unique facility operational updated with revoked card Department to electronically verify the and security needs. information). As previously discussed affected individuals’ enrollments in IAC The primary distinction between in this notice, high-risk chemical and CCSP programs. ‘‘notification when personnel depart a facilities are also able to propose other Comment: Several commenters regulated site’’ and the Department’s options for DHS consideration as part of suggested that the ICR claims to leverage requirement to be notified under their SSPs or ASPs. the TWIC, HME, and the Trusted Options 1 and 2 when an affected In conclusion, the only way the Traveler Programs, but facilities or their individual no longer has access is that Department will know that an affected designees must submit more the CFATS Personnel Surety Program is individual no longer has or is seeking information under Option 2 than if the not tracking the real-time access of an access, under Option 1 or Option2, is if high-risk chemical facility or designee affected individual at a high-risk the facility (or their designee) notifies opted to submit the minimum chemical facility. Rather, the the Department when personnel no information required under Option 1. Department, under the CFATS longer have (or no longer are seeking) The commenters conclude those who Personnel Surety Program is seeking to access to a regulated facility’s restricted have already been screened face more ensure that affected individuals areas or critical assets. The Department burdens and greater scrutiny than those (whether they enter several times a day disagrees that this aspect of the CFATS lacking any screening at all. or only once over the time period in Personnel Surety Program exceeds the Response: The Department has long which they have the capability to enter) Department’s statutory authority, conceded that the minimum number of are checked for terrorist ties. This violates, or conflict with Section 550. data elements necessary to conduct difference means that high-risk Comment: Several commenters vetting under Option 1 may, in some chemical facilities or their designees suggested that the Department, in cases, be less than the minimum only need to notify the Department particular NPPD, has in the design of number of data elements to when to cease vetting once. This is in the CFATS Personnel Surety Program electronically verify an affected stark contrast to the multiple refused to leverage credentials from individual’s enrollment in the TWIC, notifications that would be necessary if comparable programs. The commenter HME or Trusted Traveler Programs. This the Department required notification implied that NPPD could consider how is because of how the TWIC, HME, and when ‘‘personnel depart a regulated TSA opted to implement the ‘‘Air Cargo Trusted Traveler databases were site.’’ Screening Program’’, and how ATF initially constructed, not because High-risk chemical facilities and their implemented the Employee Possessor affected individuals undergo extra designees have at least two alternatives Program. scrutiny when the Department in how to notify the Department that an Response: Not all federal background electronically verifies their enrollment affected individual whose information checks conduct checks for terrorist ties Comment: One commenter requested has been submitted to DHS under that are equivalent to the background clarification about the process of Option 1 or Option 2 no longer has check for terrorist ties being conducted releasing employee information. access. The first alternative is to submit by the CFATS Personnel Surety Response: The scope of this notice is the notification when the affected Program. The Department has evaluated limited to the information submitted by individual no longer has access. Under the ATF Employee Possessor Program a high-risk chemical facility (or this alternative, a high risk chemical and identified that the Employee designee) to the Department, which is facility or designee would submit Possessor Program conducts point-in- subject to the Privacy Act of 1974 (5 information about the affected time vetting against the TSDB, which U.S.C. 552a). The Department will only individual initially and later in a means that ATF’s checks are conducted release or disclose this information in separate communication notify the at only specified times, not on a accordance with the applicable Privacy Department that the affected individual recurrent basis. Recurrent vetting is a Act System of Records Notice. The no longer has access. A second DHS best practice and compares an Submitter(s) of each high-risk chemical alternative the Department has provided affected individual’s information against facility (or their designee) will be is to allow the high-risk chemical new and/or updated TSDB records as required to affirm that, in accordance facility or designee the ability to specify new and/or updated records become with their Site Security Plans, notice when the Department should stop available. required by the Privacy Act of 1974 has vetting at the time of the initial The Indirect Air Carrier (IAC) and the been given to affected individuals before submission. Certified Cargo Screening Program their information is submitted to DHS. There are also additional alternatives (CCSP) programs both conduct terrorist DHS has made available to high-risk available to high-risk chemical facilities. ties vetting equivalent to the terrorist chemical facilities a sample notice that Under Option 3, the high risk chemical ties vetting that would be conducted complies with subsection (e)(3) of the facilities may electronically verify and under Option 1. After the initial Privacy Act (5 U.S.C. 552a(e)(3)) in the

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CFATS Personnel Surety Program notice pursuant to the Privacy Act to resolve the match and coordinate PIA.30 This notice would: (1) Notify without collecting a signature from each with appropriate law enforcement those individuals that their information and every affected individual. For entities as necessary. The Department is being submitted to DHS for vetting example, a high-risk chemical facility or believes that 48 hours is a reasonable against the Terrorist Screening Database, its designees could consider including amount of time for the Department to and that in some cases additional an appropriate statement in pay checks, successfully perform a background information may be requested and posting a sign near a restricted area or check for terrorist ties, and to coordinate submitted in order to resolve a potential critical asset, including an appropriate with appropriate law enforcement match; (2) instruct those individuals statement within existing standard entities as necessary. how to access their information; (3) privacy notices provided to individuals Comment: Several commenters instruct those individuals how to when collecting information during a suggested that by not committing to correct their information; and (4) routine and normal hiring process, or notify high-risk chemical facilities or instruct those individuals on procedures including an appropriate statement in a designees when an affected individual available to them for redress if they letter. has terrorist ties, the Department is believe their information has been Comment: One commenter requested increasing the risk of an affected improperly matched by the Department clarification about what the Department individual with terrorist ties obtaining of Homeland Security to information will do with the information it collects. access to the restricted areas or critical contained in the Terrorist Screening The commenter further suggested that assets at a high-risk chemical facility. Database. Individuals have the reducing the security risk associated Response: The Department’s design of opportunity and/or right to decline to with personnel RBPS 12 could be in the CFATS Program is intended to provide information, however, if an conflict with selecting the ‘‘best promote and enhance the security of individual declines to provide qualified personnel/contractor’’ to work high-risk chemical facilities; the information, he or she may impact a in the restricted area or critical asset. Personnel Surety Program is one high-risk chemical facility’s compliance Response: The Department will, element of the larger CFATS Program. with CFATS. under this ICR, collect the information To prevent a significant threat to a In addition, high-risk chemical necessary to implement the CFATS facility or loss of life, a high-risk facilities (or designees) may have Personnel Surety Program. The CFATS chemical facility will be contacted information about an affected individual Personnel Surety Program will use the where appropriate and in accordance obtained for other purposes (e.g., information to identify affected with federal law and policy, as well as compliance with RBPS 12(i)–(iii)) that individuals with terrorist ties. law enforcement and intelligence was never submitted to the Department With respect to the potential conflict requirements. and thus not subject to the Privacy Act. between reducing security risk and Comment: One commenter suggested While under CFATS no specific controls selecting the best qualified personnel/ that the design of the CFATS Personnel are required for information collected by contractor, the Department stated in the Surety Program appears to indicate the high-risk chemical facilities with regard CFATS IFR, ‘‘that the level of screening Department is playing an investigative to RBPS 12(i)–(iii), the Department for employees and contractors should be role rather than a preventative role. expects that high-risk chemical facilities commensurate with the access Response: The CFATS Personnel will protect and safeguard the provided. As part of this approach, the Surety Program is designed to identify information as outlined in their SSP and facility shall identify critical assets and affected individuals with terrorist ties in accordance with any other federal, restricted areas and establish which who have or are seeking access to State, or local privacy laws which do employees and contractors may need restricted areas or critical assets at high- have jurisdiction relative to the unescorted access to those areas or risk chemical facilities. The Department collection of the information. assets, and thus must undergo a does not lead the investigation of any Comment: One commenter expressed background check . . .’’.31 A facility’s concern about the Department’s request affected individual with terrorist ties; approach to personnel surety, including rather the Department supports law for an exception to the PRA notice its defined restricted areas and critical requirement in 5 CFR 1320.8(b)(3) when enforcement investigation activity. The assets, shall be detailed in the Site Department recognizes the significant the Department is also requiring that Security Plan that the facility submits to Submitters must affirm that the required and vested interest the high-risk the Department for approval. chemical facility or designee may have privacy notice regarding the collection Comment: Some commenters of personal information has been in ensuring an affected individual with suggested that without a commitment terrorist ties does not successfully carry provided to affected individuals before from the Department to be notified personal information is submitted to the out a terrorist attack against or involving when an affected individual has a high-risk chemical facility. Department. Specifically, the terrorist ties, there was little value to the commenter suggested that ‘‘in order to Comment: One commenter requested default schedule which has high-risk that the Department define what a high- make such an affirmation in good faith, chemical facilities submitting the facility would almost certainly need risk chemical facility is. information about new affected Response: Public Law 109–295 to obtain signatures or other positive individuals 48 hours prior to access to affirmations from affected individuals to required the Department to identify and restricted areas or critical assets. regulate the security of high-risk protect itself against any claims of non- Response: The CFATS Personnel compliance.’’ chemical facilities. The CFATS Surety Program, when implemented, regulations implement this statute and Response: The Department believes will identify affected individuals with that it is possible for a high-risk describe how DHS determines which terrorist ties. The Department has chemical facilities are high-risk chemical facility or designee to affirm, procedures in place that it will follow in good faith, that the affected chemical facilities. Defining high-risk chemical facilities is beyond the scope individual has been given adequate 31 See 72 FR 17688 (April 9, 2007) at https:// www.federalregister.gov/articles/2007/04/09/E7- of this notice and is beyond the scope 30 Available at http://www.dhs.gov/xlibrary/ 6363/chemical-facility-anti-terrorism-standards#p- of the ICR for the CFATS Personnel assets/privacy/privacy-pia-nppd-cfats-ps.pdf. 302. Surety Program.

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Comment: Several commenters is currently enrolled in the TWIC, HME, Department prior to access could also pointed out that under Option 1, the and Trusted Traveler Programs as a complicate the admittance of Department will not be providing the means of complying with RBPS 12(i)– specialized crews brought in to results (i.e., that the affected individual (iii). High-risk chemical facilities should accomplish emergency repairs or does or does not have terrorist ties) to carefully consider whether the specific provide emergency response services. the high-risk chemical facility or elements of the security threat Some commenters suggested that the designee, while under Option 2, the assessments performed under the TWIC, Department’s approach to allow each Department will be providing the results HME, or Trusted Traveler Programs high-risk chemical facility to address (i.e., that the Department was able to meet their business and security needs these issues in their SSP or ASP is not electronically verify that the affected before choosing to rely on them for adequate because the absence of individual is currently enrolled in either compliance with RBPS 12(i)–(iii) in uniform guidance across all the sectors, the TWIC, HME, or Trusted Traveler their SSP or ASP. programs and procedures will result in Programs). Some commenters suggested The Department would like to inconsistent processes and procedures. that not providing results under Option highlight that, under Option 2, high-risk Response: Section 550 of Public Law 1 but providing results under Option 2 chemical facilities or designees will be 109–295 established a standards based was confusing. Some commenters able to, for the first time, electronically regulatory regime to allow each high- suggested that by providing results verify an affected individual’s risk chemical facility to propose in their under Option 2, high-risk chemical enrollment in either the HME Program SSP or ASP those security measures facilities will have greater confidence or Trusted Traveler Programs. which make sense for its business that the affected individual does not Consequently, a high-risk chemical operations and security risk. This will have terrorist ties (and the credential is facility or designee may choose to rely naturally result in inconsistent not expired, has not been revoked, and on the Department verification of processes and procedures across high- is not fraudulent). The commenters enrollment, Under Option 2, to comply risk chemical facilities. The Department pointed out that high-risk chemical with RBPS 12(iv) and RBPS 12(i)–(iii). believes that the intent of Section 550 is facilities would also have greater Comment: Several commenters that flexibility (and thus some confidence than when only relying on suggested that providing information subsequent variation) is in fact a desired the visual inspection of the TWIC or about an affected individual to the outcome of CFATS rather than a other federal credential. Department prior to access would negative and unanticipated result of the Response: The Department has complicate the ability of a high-risk CFATS regulatory program. designed the CFATS Personnel Surety chemical facility or designee to The Department would also like to Program to support high-risk chemical substitute contract workers, service point out that P.L. 109–295 and its facilities’ compliance with RBPS 12(iv) providers, third party carriers, and the implementing regulations do not through a variety of options. The like on short notice in the event of an prohibit high-risk chemical facilities Department does agree that the accident, illness or change in work from developing consistent approaches flexibility high-risk chemical facilities assignment/scope. or from adopting consistent security and designees have does increase the Response: Earlier in this notice the measures or security protocols. complexity of the CFATS Personnel Department outlined its understanding Comment: Several commenters Surety Program, however, this flexibility about how high-risk chemical facilities pointed out an apparent inconsistency increases the ability of each high-risk and designees could include steps for between the Department’s statement chemical facility to be able to tailor their RBPS 12(iv) in their normal business that high-risk chemical facilities are not SSP or ASP to their unique business operations when conducting the routine required to create, keep, or retain operations when considering how to and normal background checks required records under RBPS 12(iv) and the comply with RBPS 12(iv). for RBPS 12(i)–(iii). The steps a high- Department’s statement that it may The Department also believes that this risk chemical facility normally takes to request information pertaining to flexibility provides ancillary benefits. comply with RBPS 12(i)–(iii) when affected individuals, previously Specifically, a high-risk chemical faced with substitute contract workers, provided to the Department by high-risk facility may choose to rely on the service providers, third party carriers, chemical facilities, or their designees, in electronic verification and re- and the like on short notice in the event order to confirm the accuracy of that verifications provided by the of an accident, illness or change in work information, or to conduct data accuracy Department under Option 2 to assignment/scope should be a part of a reviews and audits as part of the CFATS demonstrate compliance with RBPS high-risk chemical facility’s SSP or ASP. Personnel Surety Program. Commenters 12(i)–(iii). A high-risk chemical facility These steps, or specific alternative steps suggested that if records are not may choose to rely on the Department’s to comply with RBPS 12(iv) could also required to be kept it is unclear (1) how electronic verification and re- be a part of, or incorporated within, the Department can expect facilities to verification (provided via CSAT) under those steps a high-risk chemical facility provide information on affected Option 2 not only for RBPS 12(iv) but implements to comply with RBPS 12(i)– individuals to confirm the accuracy of also RBPS 12(i)–(iii) because an affected (iii) in their SSP or ASP. previously submitted information or (2) individual’s enrollment in the TWIC, In addition, high-risk chemical how the Department can subject high- HME, and Trusted Traveler Programs is facilities are welcome to propose risk chemical facilities to data accuracy dependent not only on an equivalent alternative or supplemental options not reviews and audits. check for terrorist ties, but on several described in this PRA notice in their Response: The Department disagrees other factors such as a verification of SSPs or ASPs. The Department will that there is a contradiction because identity, legal authorization to work, assess the adequacy of such alternative high-risk chemical facilities or their and a criminal history check. or supplemental options on a facility- designees will already possess or have Therefore, a high-risk chemical by-facility basis, in the course of access to information about many facility may, in their SSP or ASP, evaluating each facility’s SSP or ASP. affected individuals as a result of choose to rely on the Department’s Comment: Submitters further standard business practices related to electronic verification and re- suggested that providing information employment or managing of service verification that an affected individual about an affected individual to the contracts. The Department also

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recognizes that, unrelated to this which it obtained to perform the four discussed earlier in this notice, instead Information Collection, high-risk background checks required under the Department now intends to provide chemical facilities may propose to RBPS 12. The high-risk chemical facility high-risk chemical facilities, and their maintain different sorts of records or or designee submits portions of the designees, the ability to create an alert information related to RBPS 12 as part information necessary under Option 1 within the CSAT Personnel Surety of their SSPs or ASPs, and the and Option 2 to the Department via application that can notify them when Department expects that the records or CSAT. The information in the the Department has received information available could vary from possession of the high-risk chemical information about an affected one high-risk chemical facility to facility or designee does not qualify as individual(s). Such an alert would not another. The types of information the government records. be CVI. Department could request from high- • ILLUSTRATION #3: A high-risk Comment: One commenter was risk chemical facilities as part of data chemical facility or designee holds troubled by the information pertaining accuracy reviews or audits could thus information about affected individuals to RBPS–12 contained in Appendix C of vary from facility to facility, based on which it obtained to perform the four the May 2009 Risk-Based Performance each facility’s standard business background checks required under Standards Guidance (http:// practices and SSP or ASP. RBPS 12. The high-risk chemical facility www.dhs.gov/xlibrary/assets/chemsec_ Comment: Several commenters stated or designee submits portions of the cfats_riskbased_performance_ that they do not routinely collect information necessary under Option 1 standards.pdf), because the commenter information about affected individuals and Option 2 to the Department via believes that certain types of measures, who are not employees (e.g., contractors CSAT. The high-risk chemical facility or procedures, policies, and plans and visitors). designee logs into CSAT and mentioned in Appendix C are not Response: The Department downloads, prints, or copies one or appropriate for determining if chemical understands that high-risk chemical more records about affected individuals. facility personnel are terrorist threats. facilities may not routinely collect Only the records downloaded, printed, information about affected individuals or copied from CSAT are government Response: The Department expects who are not employees. Earlier in this records. high-risk chemical facilities to notice the Department outlined several • ILLUSTRATION #4: A high-risk implement appropriate security illustrative scenarios which describe chemical facility or designee holds measures to conduct identity, criminal some common business operations as information about affected individuals history, and legal authorization to work part of which high-risk chemical which it obtained to perform the four background checks. These security facilities could manage the background background checks required under measures can vary from facility to check requirements of contractors and RBPS 12. The high-risk chemical facility facility commensurate with facility- visitors under RBPS 12. In these or designee submits portions of the specific risks, security issues, and illustrative scenarios there is not an information necessary under Option 1 business practices. The guidance expectation high-risk chemical facilities and Option 2 to the Department via referenced by the commenter (see pages will receive and subsequently re- CSAT. The high-risk chemical facility or 180 to 186 of the Risk-Based transmit the information to the designee logs into CSAT and downloads Performance Standards Guidance) and Department under Option 1 or Option 2. only whether or not an affected other guidance addressing identity, Though such an approach is not individual, under Option 2, has or has criminal history, and legal authorization precluded, the Department will allow not been electronically verified as to work background checks, however, is wide latitude to high-risk chemical enrolled in the TWIC, HME, or Trusted not guidance addressing compliance facilities to enable third parties to Traveler Programs. The record of an with 6 CFR 27.230(a)(12)(iv), and as submit information about affected affected individual’s enrollment status such is not the subject of this notice, nor individuals directly to the Department, provided by the Department is a is it the subject of the underlying ICR or to satisfy RBPS 12(iv). government record. of the 60-day notice preceding this Comment: Several commenters Comment: Commenters requested notice. requested clarity about what records additional information about what would be considered government Comment: One commenter requested information and records, related to the records. that the Department clarify what appeal Response: Information about affected CFATS Personnel Surety Program was or waiver options an affected individual individuals held by the Department are and was not considered Chemical- has if his/her employer takes an adverse government records. Thus information terrorism Vulnerability Information employment action against him/her about affected individuals obtained (CVI). based on RBPS–12 background checks from the Department (via CSAT) by Response: The Department does not or based on information received or high-risk chemical facilities or their generally expect information and obtained under the CFATS Personnel designees are government records. records related to the CFATS Personnel Surety Program. The commenter also There is often confusion about copies of Surety Program to contain CVI. requested that the Department prevent In the May 2011 CFATS Personnel information which is best clarified high-risk chemical facilities from using Surety Program Privacy Impact through illustrations. personal information collected from • ILLUSTRATION #1: A high-risk Assessment (PIA), the Department affected individuals as part of RBPS–12 chemical facility or designee holds previously indicated that it would issue for purposes other than conducting the information about affected individuals a ‘‘verification of receipt’’ and that the background checks required by RBPS– which it obtained to perform the four ‘‘verification of receipt qualifies as 12. background checks required under Chemical-terrorism Vulnerability 32 RBPS 12. This information does not Information.[.]’’ However, as privacy-pia-nppd-cfats-ps.pdf. The Department also qualify as government records. discussed ‘‘verification of receipt’’ in previous • 32 See section 5.3 of the Privacy Impact public notices related to an earlier (now withdrawn) ILLUSTRATION #2: A high-risk Assessment for the CFATS Personnel Surety ICR for the Personnel Surety Program—see for chemical facility or designee holds Program, dated May 4, 2011, and available at example NPPD’s June 14, 2011 PRA Response to information about affected individuals http://www.dhs.gov/xlibrary/assets/privacy/ Comments Document, 76 FR 34720, 34721.

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Response: High-risk chemical from using the personal information for considered government records and facilities’ employment actions are not purposes other than RBPS 12(iv). therefore are not covered under the regulated by CFATS. Response: The Department expects Privacy Act of 1974. However, any The ICR the Department will submit that high-risk chemical facilities and information about affected individuals to OMB, the 60-day notice, and the 30- their designees will safeguard that is obtained from the CSAT day notice address the CFATS information collected and maintained Personnel Surety application is a Personnel Surety Program, not the under RBPS–12 as outlined in their SSP. government record and subject to the identity, legal authorization to work, While under CFATS, no additional Privacy Act of 1974. Those government and criminal history background checks specific controls are required by the records must be protected as stated in required by 6 CFR 230(a)(12)(i)–(iii). Department for information collected by the DHS CSAT Personnel Surety Discussion of information collected as high-risk chemical facilities, the part of those other three background Department does expect that high-risk application Rules of Behavior, which checks, or employment decisions based chemical facilities will protect and every CSAT user will be required to on them, is beyond the scope of this safeguard the information as outlined in affirm prior to receiving access to the notice. However, the Department their SSP or ASP in accordance with application. expects that the high-risk chemical any other federal, State, or local privacy V. The Department’s Methodology in facilities and their designees will laws which apply to the collection of Estimating the Burden safeguard information collected and the information. maintained under RBPS–12 as outlined The information collected by a high- Summary of Changes From 60-Day in their SSP and in accordance with any risk chemical facility pursuant to RBPS Notice other applicable federal, State, or local 12(iv) may be submitted to DHS under privacy laws which apply to the Option 1 and Option 2. Information When compared to the 60-day notice, collection of the information. collected or retained by the facility that the Department made only a few Comment: One commenter requested has not been submitted to DHS and changes which impacted the burden information about the controls to facility-generated copies of information estimates in this notice. Table 3 below prevent an individual or the facility that have been submitted to DHS are not briefly summarizes them.

TABLE 3—SUMMARY OF CHANGES

ICR Burden Variables Description of changes

Frequency ...... No Changes. Affected Public ...... No Changes. Number of Respondents ...... Revised the turnover rate of frequent visitors from 71% to 81.75%. As a result, the number of respondents increased from 192,000 affected individuals to 195,000 affected individuals. Estimated Time Per Respondent ...... Updated from 0.54 hours to 0.58 hours as a result of the revised turn- over rate increase. Total Burden Hours ...... Updated from 104,100 hours to 113,600 hours as a result of the re- vised turnover rate increase. Total Burden Cost (Capital/Startup) ...... No Changes. Total Recordkeeping ...... No Changes. Total Burden Cost ...... Updated from $4,771,00 to $4,844,000 as a result of the revised turn- over rate increase.

Frequency 1 or Option 2 based on their unique The Department will expect a high- circumstances in their SSPs or ASPs. risk chemical facility to begin The Department will expect, unless The default schedule below would not submitting information about affected otherwise noted in an authorized or apply to Option 3. Schedules for individuals under Option 1 and/or approved SSP or ASP, that high-risk implementing Option 3, or alternative Option 2 under the schedule below chemical facilities submit information, security measures other than Option 1 after: (1) The high-risk chemical facility under Option 1 and/or Option 2, about or Option 2, could vary from high-risk has been directed to comply with RBPS affected individuals in accordance with chemical facility to high-risk chemical 12(iv); and (2) the high-risk chemical the schedule outlined below in Table 4. facility, as described in individual facility has been notified that the High-risk chemical facilities may facilities’ SSPs or ASPs, subject to Department has implemented the suggest alternative schedules for Option approval by the Department. CFATS Personnel Surety Program.

TABLE 4—COMPLIANCE SCHEDULE FOR OPTION 1 AND OPTION 2 UNDER THE CFATS PERSONNEL SURETY PROGRAM

Tier 1 Tier 2 Tier 3 Tier 4

Initial Submission Of Af- 60 days after the day 60 days after the day 90 days after the day 90 days after the day fected Individuals’ Infor- when both conditions when both conditions when both conditions when both conditions mation. are true: are true: are true: are true: (1) DHS directs the facility (1) DHS directs the facility (1) DHS directs the facility (1) DHS directs the facility to comply with RBPS to comply with RBPS to comply with RBPS to comply with RBPS 12(iv), AND 12(iv), AND 12(iv), AND 12(iv), AND

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TABLE 4—COMPLIANCE SCHEDULE FOR OPTION 1 AND OPTION 2 UNDER THE CFATS PERSONNEL SURETY PROGRAM— Continued

Tier 1 Tier 2 Tier 3 Tier 4

(2) DHS provides notifica- (2) DHS provides notifica- (2) DHS provides notifica- (2) DHS provides notifica- tion that it has imple- tion that it has imple- tion that it has imple- tion that it has imple- mented the CFATS Per- mented the CFATS Per- mented the CFATS Per- mented the CFATS Per- sonnel Surety Program. sonnel Surety Program. sonnel Surety Program. sonnel Surety Program. Submission Of A New Af- 48 hours prior to access to 48 hours prior to access to 48 hours prior to access to 48 hours prior to access to fected Individual’s Infor- restricted areas or crit- restricted areas or crit- restricted areas or crit- restricted areas or crit- mation. ical assets. ical assets. ical assets. ical assets. Submission Of Updates Within 90 days of becom- Within 90 days of becom- Within 90 days of becom- Within 90 days of becom- And Corrections To An ing aware of the need ing aware of the need ing aware of the need ing aware of the need Affected Individual’s In- for an update or correc- for an update or correc- for an update or correc- for an update or correc- formation tion. tion. tion. tion. Submission Of Notification Within 90 days of access Within 90 days of access Within 90 days of access Within 90 days of access That An Affected Indi- being removed. being removed. being removed. being removed. vidual No Longer Has Access

Therefore, after evaluating the choices • the number of unescorted visitors at • Group C facilities are enclosed available to the Department under each type of high-risk chemical facility, facilities where loss of containment is Question 16 on the Paperwork and the primary concern (i.e., warehouses, Reduction Act Submission form • the number of facility personnel enclosed manufacturing sites) that (Standard Form–83(i)),33 the and resident contractors at each type of manufacture, process, use, store and/or Department believes that the description high-risk chemical facility. distribute chemicals. The Department of ‘‘Other: In accordance with the did not segment enclosed facilities by compliance schedule or the facility SSP Number and Type of High-Risk size because the same degree of or ASP’’ is the most appropriate choice. Chemical Facilities variation between a large open facility (i.e., a 2,000-acre petrochemical Affected Public In the 60-day notice, the Department followed the methodology used in the complex) and a small open 3–5-acre facility does not exist. These facilities Most high-risk chemical facilities 2007 CFATS Regulatory Assessment 34 are assumed to have one security regulated under CFATS are private which recognized that each chemical entrance for the purpose of the cost businesses, or parts of private facility is unique. In the 2007 CFATS analysis. businesses. Most people that access the Regulatory Assessment the Department restricted areas and critical assets of • Theft/Diversion facilities are determined that it was impractical to typically merchant wholesalers (often high-risk chemical facilities do so for estimate costs for each high-risk business purposes. Therefore, after called chemical distributors), chemical chemical facility. Therefore, the manufacturers, or other manufacturers evaluating the choices available to the Department created four categories of Department on Standard Form 83(i), the that manufacture, process, use, store or facilities for each tier; three categories of distribute chemicals that could be the Department selected the description of facilities where loss of containment of ‘‘Business or other for-profit’’ as the target of theft and diversion. The theft the chemicals of interest is the primary of chemicals could include theft of most appropriate selection for this concern and one category of facilities proposed Information Collection. portable containers by employees, where theft and diversion of chemicals visitors or adversaries. The diversion of Number of Respondents is the primary concern. Specifically, chemicals involves what often looks like • The number of respondents under this Group A includes open facilities a legitimate transaction where an collection is the number of affected with 100 or more employees where loss adversary, impersonating a legitimate individuals that high-risk chemical of containment is the primary concern. customer, purchases chemicals that facilities or their designees submit These facilities are assumed to have five could later be turned into weapons. information about in compliance with security entrances for the purpose of the These facilities are assumed to have one RBPS 12(iv). As described more fully cost analysis. security entrance for the purposes of below, for the purpose of this notice the • Group B includes open facilities cost analysis. number of respondents is estimated by with 99 or fewer employees where loss In the 60-day notice, the Department multiplying: of containment is the primary concern. updated the number and type of high- • The estimated number and types of In addition, facilities that store risk chemical facilities estimated in the high-risk chemical facilities, and anhydrous ammonia for commercial 2007 CFATS Regulatory Assessment. • the estimated number of affected refrigeration in outdoor vessels are also The updated analysis, hereafter referred individuals at each type of high-risk considered ‘‘open’’ for the purpose of to as the 2012 CFATS Personnel Surety chemical facility. this analysis because it is the outdoor Program Analysis, determined the high- For the purpose of this notice, the storage that requires protection. These risk chemical facility count for each of Department estimates the number of facilities are assumed to have two the 16 model facility categories affected individuals at each type of security entrances for the purpose of the identified in the 2007 Regulatory high-risk chemical facility as the sum of: cost analysis. Assessment by analyzing high-risk chemical facilities designated with a 33 A blank copy of Standard Form 83(i) may be 34 See CFATS Regulatory Assessment Section 5.1 final tier under CFATS as of August found at http://www.whitehouse.gov/sites/default/ (April 1, 2007), http://www.regulations.gov/ 2012. A comparison of the number of files/omb/inforeg/83i-fill.pdf. #!documentDetail;D=DHS-2006-0073-0116. high-risk chemical facilities, estimated

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by the 2007 CFATS Regulatory 2012 CFATS Personnel Surety Program Assessment, to the number of high-risk Analysis is presented in Table 5. chemical facilities identified within the

TABLE 5—NUMBER OF FACILITIES IN EACH MODEL FACILITY CATEGORY

2012 CFATS 2007 CFATS personnel surety regulatory program analysis assessment (raw data)

Tier 1 Group A ...... 81 4 Tier 1 Group B ...... 89 6 Tier 1 Group C ...... 24 10 Tier 1 Theft ...... 6 93 Tier 2 Group A ...... 166 8 Tier 2 Group B ...... 64 16 Tier 2 Group C ...... 80 15 Tier 2 Theft ...... 189 400 Tier 3 Group A ...... 315 22 Tier 3 Group B ...... 438 33 Tier 3 Group C ...... 329 66 Tier 3 Theft ...... 718 935 Tier 4 Group A ...... 242 72 Tier 4 Group B ...... 690 190 Tier 4 Group C ...... 599 13 Tier 4 Theft ...... 970 1,683

Total ...... 5,000 3,566

In the 60-day notice, the Department multiplying the number of high-risk chemical facility count is compared to normalized the number of facilities in chemical facilities in each category by a the 2007 CFATS Regulatory Assessment each model facility category of the 2012 factor of 1.22.35 The 2012 CFATS high-risk chemical facility count, by CFATS Personnel Surety Program Personnel Surety Program Analysis model facility category, in Table 6. Analysis to 4,000 facilities by revised (i.e., normalized) high-risk

TABLE 6—NUMBER OF HIGH-RISK CHEMICAL FACILITIES IN EACH MODEL FACILITY CATEGORY [Normalized to 4,000 facilities]

2012 CFATS 2007 CFATS personnel surety regulatory program analysis assessment (normalized)

Tier 1 Group A ...... 81 4 Tier 1 Group B ...... 89 7 Tier 1 Group C ...... 24 11 Tier 1 Theft ...... 6 104 Tier 2 Group A ...... 166 9 Tier 2 Group B ...... 64 18 Tier 2 Group C ...... 80 17 Tier 2 Theft ...... 189 449 Tier 3 Group A ...... 315 25 Tier 3 Group B ...... 438 37 Tier 3 Group C ...... 329 74 Tier 3 Theft ...... 718 1,049 Tier 4 Group A ...... 242 81 Tier 4 Group B ...... 690 213 Tier 4 Group C ...... 599 15 Tier 4 Theft ...... 970 1,888

Total ...... 5,000 4,000

As in the 60-day notice, this notice estimated through the normalized 2012 facility type (i.e., facility count) is based the Department continues to use the CFATS Personnel Surety Program upon actual historical data. number and type of high-risk chemical Analysis because the distribution of facilities in each facility category

35 The factor of 1.22 was used because (4,000 facilities/3566 facilities) = 1.22.

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Estimated Number of Affected 1 through 4); and 50 visitors expected at chemical facilities will only be Individuals at Each Type of High-Risk theft/diversion model facilities (Tier 1 responsible for submitting information Chemical Facility—Unescorted Visitors through 4). ACC estimated an annual for unescorted visitors with access to With Access to Restricted Areas or turnover rate of 71 percent for frequent restricted areas or critical assets. The Critical Assets visitors (e.g., delivery personnel) and an Department does not expect high-risk For the purpose of estimating the annual turnover rate of 20 percent for chemical facilities to allow large potential burden this information infrequent visitors that only visit the numbers of visitors to have unescorted collection could impose, the facility once or twice a year (e.g., access to restricted areas or critical Department determined that it was corporate auditors). In response to the assets. As a general matter, the appropriate to continue to use the 60-day notice, the Department received Department does not believe it to be conservative assumptions from the a comment from American Trucking likely that many high-risk chemical American Chemistry Council (ACC) Associations (ATA) that suggested the facilities will propose in their SSPs about frequent and infrequent visitors annual turnover rate for frequent under CFATS to allow large numbers of and treat them all as unescorted visitors (e.g., delivery personnel) visitors to have unescorted access to the visitors.36 Specifically, the ACC suggested by ACC is too low. ATA restricted areas and critical assets of provided the Department with an suggested that the Department use a high-risk chemical facilities because estimate on the number and turnover of turnover rate of 81.75% instead of 71%. then these visitors would be subject to frequent and infrequent visitors at high- As a result, the Department increased its all four types of background checks risk chemical facilities. estimate of the frequent visitor annual listed in RBPS 12. However, for the ACC’s analysis suggests that 1,200 turnover rate to 81.75%. purpose of estimating the potential total visitors per year should be The Department also continues to burden this information collection expected at large open manufacturing maintain the assumption in the 60-day could impose, the Department continues facilities that align with Group A (Tier notice that frequent and infrequent to use ACC’s conservative assumptions 1 through 4) model facility categories; visitors were expected to compose equal about frequent and infrequent visitors 300 visitors each at small open volume of traffic at high-risk chemical and treat them all as unescorted visitors. manufacturing facilities (Group B model facilities. Table 7 provides the Department’s facility categories, Tier 1 through 4) and ACC’s analysis assumed that all estimated number of unescorted visitors enclosed manufacturing facilities visitors count towards the number of that have or are seeking access to (Group C model facility categories, Tier affected individuals. However, high-risk restricted areas or critical assets.

TABLE 7—ESTIMATE OF UNESCORTED VISITORS THAT HAVE OR ARE SEEKING ACCESS TO RESTRICTED AREAS OR CRITICAL ASSETS

A B C* D** E = C + D A + B + E

Infrequent Frequent Infrequent Frequent Unescorted Unescorted visitors visitors visitor annual visitor annul visitor annual visitor estimate turnover turnover turnover (20%) (81.75%)

Tier 1 Group A ...... 600 600 120 491 611 1811 Tier 1 Group B ...... 150 150 30 123 153 453 Tier 1 Group C ...... 150 150 30 123 153 453 Tier 1 Theft ...... 25 25 5 20 25 75 Tier 2 Group A ...... 600 600 120 491 611 1811 Tier 2 Group B ...... 150 150 30 123 153 453 Tier 2 Group C ...... 150 150 30 123 153 453 Tier 2 Theft ...... 25 25 5 20 25 75 Tier 3 Group A ...... 600 600 120 491 611 1811 Tier 3 Group B ...... 150 150 30 123 153 453 Tier 3 Group C ...... 150 150 30 123 153 453 Tier 3 Theft ...... 25 25 5 20 25 75 Tier 4 Group A ...... 600 600 120 491 611 1811 Tier 4 Group B ...... 150 150 30 123 153 453 Tier 4 Group C ...... 150 150 30 123 153 453 Tier 4 Theft ...... 25 25 5 20 25 75 * C = A × 0.20, ** D = B × 0.8175.

Estimated Number of Affected With Access to Restricted Areas or full time employees and resident Individuals at Each Type of High-Risk Critical Assets contractors for the 16 model facility Chemical Facility—Facility Personnel The 2007 CFATS Regulatory categories, as shown in Table 8.37 Assessment also provided an estimate of

36 This cost estimate has been posted to Docket www.regulations.gov/#!documentDetail;D=DHS- www.regulations.gov/#!documentDetail;D=DHS- DHS–2012–0061, which may be accessed through 2012-0061-0008. 2006-0073-0116. the Federal eRulemaking Portal at http:// 37 See CFATS Regulatory Assessment Section 6.3.7, Table 15 (April 1, 2007), http://

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TABLE 8—2007 CFATS REGULATORY ASSESSMENT ESTIMATE OF NUMBER OF FULL TIME EMPLOYEES AND RESIDENT CONTRACTORS

A B C* D** A + C + D

Number of Resident Resident 20% Annual Number of full time contractors per contractors turnover full time employees per facility per facility (full time employees facility (as percent of employees and full time and resident resident employees) contractors contractors per per facility) facility (including 20% annual turnover)

Tier 1 Group A ...... 391 30 117 102 610 Tier 1 Group B ...... 35 20 7 8 50 Tier 1 Group C ...... 152 10 15 33 200 Tier 1 Theft ...... 35 10 4 8 47 Tier 2 Group A ...... 279 30 84 73 436 Tier 2 Group B ...... 34 20 7 8 49 Tier 2 Group C ...... 317 10 32 70 419 Tier 2 Theft ...... 35 10 4 8 47 Tier 3 Group A ...... 487 30 146 127 760 Tier 3 Group B ...... 47 20 9 11 67 Tier 3 Group C ...... 310 10 31 68 409 Tier 3 Theft ...... 35 10 4 8 47 Tier 4 Group A ...... 283 30 85 74 442 Tier 4 Group B ...... 139 20 28 33 200 Tier 4 Group C ...... 201 10 20 44 265 Tier 4 Theft ...... 35 10 4 8 47

Total ...... n/a n/a n/a n/a n/a *C = A × B, **D = (A + C) × 0.20.

In the June 2011 ICR, the Department and Petrochemical Manufacturers 38 the estimated number of full time updated the estimate of employees and during the 30 day comment period employees/contractors in Group A resident contractors in the 2007 CFATS associated with the previous CFATS facilities by 5, as shown in Table 9. Regulatory Assessment in response to a Personnel Surety Program ICR.39 survey submitted by the American Fuel Specifically, the Department increased

TABLE 9—REVISED 2007 CFATS REGULATORY ASSESSMENT ESTIMATE OF NUMBER OF FULL TIME EMPLOYEES AND RESIDENT CONTRACTORS

A B C* D** A + C + D

Number of Resident Resident 20% Annual Number of full time contractors contractors turnover full time employees per per facility per facility (full time employees facility (as percent of employees and full time and resident resident employees) contractors per contractors facility) per facility (including 20% annual turnover)

Tier 1 Group A ...... 1,955 30 587 508 3,050 Tier 1 Group B ...... 35 20 7 8 50 Tier 1 Group C ...... 152 10 15 33 201 Tier 1 Theft ...... 35 10 4 8 46 Tier 2 Group A ...... 1,395 30 419 363 2,176 Tier 2 Group B ...... 34 20 7 8 49 Tier 2 Group C ...... 317 10 32 70 418 Tier 2 Theft ...... 35 10 4 8 46 Tier 3 Group A ...... 2,435 30 731 633 3,799 Tier 3 Group B ...... 47 20 9 11 68 Tier 3 Group C ...... 310 10 31 68 409 Tier 3 Theft ...... 35 10 4 8 46

38 The American Fuel and Petrochemical www.regulations.gov/#!documentDetail;D=DHS- Collection Request 1670—NEW, 76 FR 34720 (June Manufacturers is the name of the former National 2009-0026-0029. 14, 2011). Petrochemical & Refiners Association, whose 39 See Response To Comments Received During comment may be found at http:// 30 Day Comment Period: New Information

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TABLE 9—REVISED 2007 CFATS REGULATORY ASSESSMENT ESTIMATE OF NUMBER OF FULL TIME EMPLOYEES AND RESIDENT CONTRACTORS—Continued

A B C* D** A + C + D

Number of Resident Resident 20% Annual Number of full time contractors contractors turnover full time employees per per facility per facility (full time employees facility (as percent of employees and full time and resident resident employees) contractors per contractors facility) per facility (including 20% annual turnover)

Tier 4 Group A ...... 1,415 30 425 368 2,207 Tier 4 Group B ...... 139 20 28 33 200 Tier 4 Group C ...... 201 10 20 44 265 Tier 4 Theft ...... 35 10 4 8 46

Total ...... n/a n/a n/a n/a n/a *C = A × B, **D = (A + C) × 0.20.

In addition to submitting comments B and C facilities and only 15 percent Program Analysis. The resulting on the Department’s June 2011 of employees/resident contractors have estimate, referred to as the ‘‘Adjusted estimated burden about unescorted access to theft/diversion facilities. To June 2011 ICR Estimate of the Number visitors, ACC also suggested that 80 provide an additional estimate of the of Full Time Employees and Resident percent of employees/resident number of respondents the Department Contractors’’ is shown in Table 10. contractors have access to restricted applied this ACC assumption to the areas and/or critical assets at Group A, revised 2012 CFATS Personnel Surety

TABLE 10—ADJUSTED JUNE 2011 ICR ESTIMATE OF THE NUMBER OF FULL TIME EMPLOYEES AND RESIDENT CONTRACTORS

A B C* D** A + C + D E (A+C+D) × E

Number of Resident Resident 20% annual Number of ACC’s Number of full time contractors contractors turnover full time estimate of full time employees per per facility per facility (full time employees full time employees facility (as percent of employees and employees and resident full time and resident resident and contrac- contractors employees) contractors per contractors tors per facility facility) per facility with access with access (including to restricted to restricted 20% annual areas or areas or turnover) critical assets critical assets (percent) (including 20% annual turnover)

Tier 1 Group A ...... 1,955 30 587 508 3,050 80 2,440 Tier 1 Group B ...... 35 20 7 8 50 80 40 Tier 1 Group C ...... 152 10 15 33 201 80 161 Tier 1 Theft ...... 35 10 4 8 46 15 7 Tier 2 Group A ...... 1,395 30 419 363 2,176 80 1,741 Tier 2 Group B ...... 34 20 7 8 49 80 39 Tier Group C ...... 317 10 32 70 418 80 335 Tier 2 Theft ...... 35 10 4 8 46 15 7 Tier 3 Group A ...... 2,435 30 731 633 3,799 80 3,039 Tier 3 Group B ...... 47 20 9 11 68 80 54 Tier 3 Group C ...... 310 10 31 68 409 80 327 Tier 3 Theft ...... 35 10 4 8 46 15 7 Tier 4 Group A ...... 1,415 30 425 368 2,207 80 1,766 Tier 4 Group B ...... 139 20 28 33 200 80 160 Tier 4 Group C ...... 201 10 20 44 265 80 212 Tier 4 Theft ...... 35 10 4 8 46 15 7

Total ...... n/a n/a n/a n/a n/a n/a n/a *C = A × B, **D = (A + C) × 0.020.

For the purpose of this notice, the not the 2007 CFATS Regulatory basis for the estimate of full time Department also evaluated whether or Assessment should continue to be the employees and resident contractors. To

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provide an additional estimate of the submitted by high-risk chemical was able to estimate full time employees number of respondents, the 2012 facilities in response to Top-Screen 40 and resident contractors by each model CFATS Personnel Surety Program Question Q:1.45–400.41 Based upon the facility category, as shown in Table 11. Analysis analyzed actual information submitted information, the Department

TABLE 11—2012 CFATS PERSONNEL SURETY PROGRAM ANALYSIS’ ESTIMATE OF THE NUMBER OF FULL TIME EMPLOYEES AND RESIDENT CONTRACTORS

A B A + B

20% annual Number of full Response to Resident contractors turnover time employees top screen per facility Resident contractors (full time employ- and resident con- question (as percent of per facility ees and resident tractors per facility Q:1.45–400 full time employees) contractors per (including 20% facility) annual turnover)

Tier 1 Group A ...... 599 120 719 Tier 1 Group B ...... 36 7 43 Tier 1 Group C ...... 300 60 360 Tier 1 Theft ...... 653 131 783 Tier 2 Group A ...... 222 44 267 Tier 2 Group B ...... 30 6 36 Tier 2 Group C ...... 489 98 587 Tier 2 Theft ...... 416 N/A—Top Screen Question Q1:1.45–400 incorporates 83 499 Tier 3 Group A ...... 594 estimate of resident contractors 119 713 Tier 3 Group B ...... 33 7 39 Tier 3 Group C ...... 188 38 225 Tier 3 Theft ...... 233 47 279 Tier 4 Group A ...... 737 147 884 Tier 4 Group B ...... 17 3 20 Tier 4 Group C ...... 175 35 211 Tier 4 Theft ...... 195 39 234

Total ...... n/a n/a n/a * In question Top Screen Question Q:1.45–400, facilities provide both full time employees and resident contractors.

Table 12 compares the estimates of Regulatory Assessment; (2) ICR of Full Time Employees and Resident full time employees and resident submitted in June of 2011; (3) adjusted Contractors; and (4) 2012 CFATS contractors in the: (1) 2007 CFATS June 2011 ICR Estimate of the Number Personnel Surety Program Analysis.

TABLE 12—AVERAGE NUMBER OF FULL TIME EMPLOYEES AND CONTRACTORS PER FACILITY BY MODEL FACILITY CATEGORY

June 2011 ICR (adjusted with ACC’s 2012 CFATS 2007 CFATS Estimate used assumption personnel regulatory in June 2011 on facility surety assessment ICR personnel program with access to analysis restricted areas or critical assets)

Tier 1 Group A ...... 610 3,050 2,440 719 Tier 1 Group B ...... 50 50 40 43 Tier 1 Group C ...... 200 201 161 360 Tier 1 Theft ...... 47 46 7 783 Tier 2 Group A ...... 436 2,176 1,741 267 Tier 2 Group B ...... 49 49 39 36 Tier 2 Group C ...... 419 418 335 587 Tier 2 Theft ...... 47 46 7 499 Tier 3 Group A ...... 760 3,799 3,039 713 Tier 3 Group B ...... 67 68 54 39 Tier 3 Group C ...... 409 409 327 225 Tier 3 Theft ...... 47 46 7 279 Tier 4 Group A ...... 442 2,207 1,766 884 Tier 4 Group B ...... 200 200 160 20

40 Top-Screen is defined at 6 CFR 27.105. application which is not available to the general entitled, ‘‘Number of Full Time Employees.’’ See 41 Q:1.45–400 refers to the specific question public. However, the exact text of the question is http://www.dhs.gov/xlibrary/assets/chemsec_ reference number in the online Top-Screen available on page 20 of the CSAT Top-Screen csattopscreenusersmanual.pdf. Survey Application User Guide v1.99 in the row

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TABLE 12—AVERAGE NUMBER OF FULL TIME EMPLOYEES AND CONTRACTORS PER FACILITY BY MODEL FACILITY CATEGORY—Continued

June 2011 ICR (adjusted with ACC’s 2012 CFATS 2007 CFATS Estimate used assumption personnel regulatory in June 2011 on facility surety assessment ICR personnel program with access to analysis restricted areas or critical assets)

Tier 4 Group C ...... 265 265 212 211 Tier 4 Theft ...... 47 46 7 234

When evaluating the reasonable (2) the estimate of full time employees • the number of facility personnel alternatives (see next section) to and resident contractors in the 2012 and resident contractors at each type of estimate the total number of CFATS Personnel Surety Program high-risk chemical facility. respondents, the Department did not Analysis. In light of the data submitted by consider alternatives that used an commenters and the Department’s own assumption about the full time Summary of Alternatives To Estimate the Number of Respondents analysis, three alternatives for the total employees and resident contractors number of respondents were considered estimates from the 2007 CFATS As mentioned above, for the purpose by the Department. Regulatory Assessment or the estimate of this notice, the number of First, the total number of respondents in the June 2011 ICR. respondents is estimated by is based on: Rather, when evaluating the multiplying: a. The number and type of high-risk reasonable alternatives to estimate the • The number and type of high-risk chemical facilities assumed in the 2012 total number of respondents (see the chemical facilities, and CFATS Personnel Surety Program next section of this document for this • Analysis; evaluation), the Department opted to the number of affected individuals use the best available industry at each type of high-risk chemical b. the ACC’s estimates about estimates, as well as actual historical facility. unescorted visitors; and data collected directly from high-risk For the purpose of this notice, the c. the adjusted June 2011 ICR estimate chemical facilities, to estimate the full Department estimates the number of of the number of full time employees time employees and resident affected individuals at each type of and resident contractors. contractors. Namely: high-risk chemical facility as the sum of: This alternative results in an estimate (1) the adjusted June 2011 ICR • The number of unescorted visitors of an initial 995,944 respondents with estimate of full time employees and at each type of high-risk chemical an annual turnover of 313,819 resident contractors, and facility, and respondents. See Table 13.

TABLE 13—ESTIMATE OF NUMBER OF RESPONDENTS—ALTERNATIVE 1

(A + B) × (D + E) × A B A B C C D E C

Number of Estimate of Full time ACC Number of Number of CFATS ACC (Table 6) full time full time employees unescort- facilities initial re- personnel unescorted Annual re- employees employees and ed visitor (Table 5) spondents surety visitors spondent and resi- and resident estimate (includes program annual turnover dent con- contractors contractors (including 20% ICR with- turnover tractors with ac- CFATS 81.75% annual drawn in CFATS cess to re- personnel turnover turnover) July of personnel stricted surety pro- for fre- 2011 20% surety pro- areas or gram ICR quent visi- annual gram ICR critical as- withdrawn tors, 20% turnover withdrawn sets in July of turnover (Table 9) in July of (Percent) 2012 with for infre- 2012 estimates quent visi- (including of percent- tors) 20% an- age of em- Table 6) nual turn- ployees/ over) resident (Table 8) contractors with re- stricted area and/ or critical asset (Table 9)

Tier 1 Group A ...... 3,050 80 2,440 1,811 4 19,071 508 611 5,020 Tier 1 Group B ...... 50 80 40 453 7 3,318 8 153 1,084

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TABLE 13—ESTIMATE OF NUMBER OF RESPONDENTS—ALTERNATIVE 1—Continued

(A + B) × (D + E) × A B A B C C D E C

Number of Estimate of Full time ACC Number of Number of CFATS ACC (Table 6) full time full time employees unescort- facilities initial re- personnel unescorted Annual re- employees employees and ed visitor (Table 5) spondents surety visitors spondent and resi- and resident estimate (includes program annual turnover dent con- contractors contractors (including 20% ICR with- turnover tractors with ac- CFATS 81.75% annual drawn in CFATS cess to re- personnel turnover turnover) July of personnel stricted surety pro- for fre- 2011 20% surety pro- areas or gram ICR quent visi- annual gram ICR critical as- withdrawn tors, 20% turnover withdrawn sets in July of turnover (Table 9) in July of (Percent) 2012 with for infre- 2012 estimates quent visi- (including of percent- tors) 20% an- age of em- Table 6) nual turn- ployees/ over) resident (Table 8) contractors with re- stricted area and/ or critical asset (Table 9)

Tier 1 Group C ...... 201 80 161 453 11 6,878 33 153 2,087 Tier 1 Theft ...... 46 15 7 75 104 8,592 8 25 3,457 Tier 2 Group A ...... 2,176 80 1,741 1,811 9 31,870 363 611 8,733 Tier 2 Group B ...... 49 80 39 453 18 8,826 8 153 2,886 Tier 2 Group C ...... 418 80 335 453 17 13,248 70 153 3,741 Tier 2 Theft ...... 46 15 7 75 449 36,957 8 25 14,868 Tier 3 Group A ...... 3,799 80 3,039 1,811 25 119,671 633 611 30,689 Tier 3 Group B ...... 68 80 54 453 37 18,759 11 153 6,067 Tier 3 Group C ...... 409 80 327 453 74 57,744 68 153 16,348 Tier 3 Theft ...... 46 15 7 75 1,049 86,387 8 25 34,754 Tier 4 Group A ...... 2,207 80 1,766 1,811 81 288,842 368 611 79,018 Tier 4 Group B ...... 200 80 160 453 213 130,592 33 153 39,638 Tier 4 Group C ...... 265 80 212 453 15 9,695 44 153 2,870 Tier 4 Theft ...... 46 15 7 75 1,888 155,496 8 25 62,558

Total ...... n/a n/a n/a n/a 4,000 995,944 n/a n/a 313,819

Second, the total number of c. the number of full time employees access to restricted areas or critical respondents is based on: and resident contractors estimated by assets. a. The number and type of high-risk the 2012 CFATS Personnel Surety This alternative results in an estimate chemical facilities assumed in the 2012 Program Analysis; and of an initial 919,646 respondents with CFATS Personnel Surety Program d. ACC’s estimate of the percentage of an annual turnover of 416,879 Analysis; b. the ACC’s estimates about resident employees and contractors with respondents. See Table 14. unescorted visitors;

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TABLE 14—ESTIMATE OF NUMBER OF RESPONDENTS—ALTERNATIVE 2

(A × B) = (C + D) × (F + G) × A B C D E E F G E

2012 Estimate of Average ACC Number of Number of 2012 ACC Annual re- CFATS full time number of unescorted facilities initial re- CFATS unescorted spondent personnel employees full time visitor (Table 5) spondents personnel visitors turnover surety pro- and employees estimate (includes surety annual gram anal- contractors and (including 20% program turnover ysis aver- with ac- contractors 81.75% annual analysis (Table 6) age num- cess to re- (including turnover turnover) 20% an- ber of full stricted 20% turn- for fre- nual turn- time em- areas or over) quent visi- over ployees critical as- tors, 20% (Table 10) and con- sets turnover tractors (percent) for infre- (including quent visi- 20% tors) turnover) (Table 6) (Table 10)

Tier 1 Group A ...... 719 80 575 1811 4 10,702 120 611 3,277 Tier 1 Group B ...... 43 80 34 453 7 3,278 7 153 1,075 Tier 1 Group C ...... 360 80 288 453 11 8,304 60 153 2,384 Tier 1 Theft...... 783 15 118 75 104 20,127 131 25 16,273 Tier 2 Group A ...... 267 80 213 1,811 9 18,161 44 611 5,877 Tier 2 Group B ...... 36 80 29 453 18 8,645 6 153 2,848 Tier 2 Group C ...... 587 80 469 453 17 15,514 98 153 4,214 Tier 2 Theft ...... 499 15 75 75 449 67,405 83 25 48,700 Tier 3 Group A ...... 713 80 571 1,811 25 58,760 119 611 17,999 Tier 3 Group B ...... 39 80 31 453 37 17,917 7 153 5,892 Tier 3 Group C ...... 225 80 180 453 74 46,854 38 153 14,079 Tier 3 Theft ...... 279 15 42 75 1,049 123,087 47 25 75,533 Tier 4 Group A ...... 884 80 707 1,811 81 203,357 147 611 61,209 Tier 4 Group B ...... 20 80 16 453 213 99,897 3 153 33,243 Tier 4 Group C ...... 211 80 168 453 15 9,057 35 153 2,737 Tier 4 Theft ...... 234 15 35 75 1,888 208,578 39 25 121,538

Total ...... n/a n/a n/a n/a 4,000 919,646 n/a n/a 416,879

Third the total number of respondents c. the number of full time employees and contractors with access to restricted is based on: and resident contractors estimated by areas or critical assets. a. The number and type of high-risk the 2012 CFATS Personnel Surety This alternative results in an estimate chemical facilities assumed in the 2012 Program Analysis; and of an initial 1,830,356 respondents with CFATS Personnel Surety Program d. does not include ACC’s estimate of an annual turnover of 416,879 Analysis; b. the ACC’s estimates about the percentage of resident employees respondents. See Table 15. unescorted visitors;

TABLE 15—ESTIMATE OF NUMBER OF RESPONDENTS—ALTERNATIVE 3

(A × B) = (C + D) × (F + G) × A B C D E E F G E

2012 Estimate of Average ACC Number of Number of 2012 ACC Annual re- CFATS full time number of unescorted facilities initial re- CFATS unescorted spondent personnel employees full time visitor (Table 5) spondents personnel visitors turnover surety and employees estimate surety annual proram contractors and (including program turnover analysis with ac- contractors 81.75% analysis (Table 6) average cess to re- (including turnover 20% an- number of stricted 20% turn- for fre- nual turn- full time areas or over) quent visi- over employees critical as- tors, 20% (Table 10) and con- sets turnover tractors (percent) for infre- (including quent visi- 20% turn- tors) over) (Table 6) (Table 10)

Tier 1 Group A...... 719 100 719 1,811 4 11,347 120 611 3,277 Tier 1 Group B ...... 43 100 43 453 7 3,336 7 153 1,075 Tier 1 Group C ...... 360 100 360 453 11 9,111 60 153 2,384 Tier 1 Theft ...... 783 100 783 75 104 89,587 131 25 16,273 Tier 2 Group A ...... 267 100 267 1,811 9 18,640 44 611 5,877

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TABLE 15—ESTIMATE OF NUMBER OF RESPONDENTS—ALTERNATIVE 3—Continued

(A × B) = (C + D) × (F + G) × A B C D E E F G E

2012 Estimate of Average ACC Number of Number of 2012 ACC Annual re- CFATS full time number of unescorted facilities initial re- CFATS unescorted spondent personnel employees full time visitor (Table 5) spondents personnel visitors turnover surety and employees estimate surety annual proram contractors and (including program turnover analysis with ac- contractors 81.75% analysis (Table 6) average cess to re- (including turnover 20% an- number of stricted 20% turn- for fre- nual turn- full time areas or over) quent visi- over employees critical as- tors, 20% (Table 10) and con- sets turnover tractors (percent) for infre- (including quent visi- 20% turn- tors) over) (Table 6) (Table 10)

Tier 2 Group B ...... 36 100 36 453 18 8,775 6 153 2,848 Tier 2 Group C ...... 587 100 587 453 17 17,489 98 153 4,214 Tier 2 Theft ...... 499 100 499 75 449 257,567 83 25 48,700 Tier 3 Group A ...... 713 100 713 1,811 25 62,281 119 611 17,999 Tier 3 Group B ...... 39 100 39 453 37 18,208 7 153 5,892 Tier 3 Group C ...... 225 100 225 453 74 50,191 38 153 14,079 Tier 3 Theft ...... 279 100 279 75 1,049 372,244 47 25 75,533 Tier 4 Group A ...... 884 100 884 1,811 81 217,641 147 611 61,209 Tier 4 Group B ...... 20 100 20 453 213 100,755 3 153 33,243 Tier 4 Group C ...... 211 100 211 453 15 9,671 35 153 2,737 Tier 4 Theft ...... 234 100 234 75 1,888 583,514 39 25 121,538

Total ...... n/a n/a n/a n/a 4,000 1,830,356 n/a n/a 416,879

These three alternatives are summarized in Table 16.

TABLE 16—COMPARISON OF NUMBER OF RESPONDENTS FOR ALTERNATIVES 1, 2 AND 3

Number of respondents Initial Year Year 2 Year 3 (annual average)

Alternative 1 ...... 995,944 313,819 313,819 541,194 Alternative 2 ...... 919,646 416,879 416,879 584,468 Alternative 3 ...... 1,830,356 416,879 416,879 888,038

For the purpose of this notice the Limitation of Respondents to Tier 1 and CFATS regulated facilities. Assuming Department selected alternative 3. Tier 2 Facilities this information collection request is Alternative 3 reasonably reflects the approved, a subsequent ICR would be type and number of facilities regulated The Department is proposing to limit published and submitted to OMB for by CFATS, is based upon the actual this information collection, and to limit approval to incorporate any lessons number of full time employees and initial CFATS Personnel Surety Program learned and potential improvements to contractors as reported by high-risk implementation, to only Tier 1 and Tier the CFATS Personnel Surety Program chemical facilities, and explicitly 2 high-risk chemical facilities. A limited prior to collecting information from Tier estimates unescorted visitors as a implementation would enable the 3 and Tier 4 high-risk chemical separate population from facility Department to implement the CFATS facilities. Table 17 provides the estimate employees and resident contractors. Personnel Surety Program for those of the number of respondents using facilities presenting the highest risk, alternative 3 for Tier 1 and 2 high-risk while not imposing the burden on all chemical facilities.

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TABLE 17—ESTIMATE OF NUMBER OF TIER 1 & 2 RESPONDENTS

(A × B) = (C + D) × (F = G) × A B C D E E F G E

2012 Estimate of Average ACC Number of Number of 2012 ACC Annual re- CFATS full time number of unescorted facilities initial re- CFATS unescorted spondent personnel employees full time visitor (Table 5) spondents personnel visitors turnover surety pro- and employees estimate surety annual gram anal- contractors and (including program turnover ysis aver- with ac- contractors 81.75% analysis (Table 6) age num- cess to re- (Including turnover 20% an- ber of full stricted 20% turn- for fre- nual turn- time em- areas or over) quent visi- over ployees critical as- tors, 20% (Table 10) and con- sets turnover tractors (Percent) for infre- (including quent visi- 20% turn- tors) over) (Table 6) (Table 10)

Tier 1 Group A...... 719 100 719 1,811 4 11,347 120 611 3,277 Tier 1 Group B ...... 43 100 43 453 7 3,336 7 153 1,075 Tier 1 Group C ...... 360 100 360 453 11 9,111 60 153 2,384 Tier 1 Theft ...... 783 100 783 75 104 89,587 131 25 16,273 Tier 2 Group A ...... 267 100 267 1,811 9 18,640 44 611 5,877 Tier 2 Group B ...... 36 100 36 453 18 8,775 6 153 2,848 Tier 2 Group C ...... 587 100 587 453 17 17,489 98 153 4,214 Tier 2 Theft ...... 499 100 499 75 449 257,567 83 25 48,700

Total ...... n/a n/a n/a n/a n/a 415,852 n/a n/a 84,648

Therefore, the annual average number rounded estimate is 195,000 of respondents is equal to 195,049, as respondents. shown in Table 18. The Department’s

TABLE 18—ESTIMATE OF ANNUAL NUMBER OF RESPONDENTS FOR TIER 1 & 2 FACILITIES

A B C (A + B + C)/3

Total Total Total Number of respondents respondents respondents respondents year 1 year 2 year 3 (annual average)

Tier 1 Group A ...... 11,347 3,277 3,277 5,967 Tier 1 Group B ...... 3,336 1,075 1,075 1,829 Tier 1 Group C ...... 9,111 2,384 2,384 4,627 Tier 1 Theft ...... 89,587 16,273 16,273 40,711 Tier 2 Group A ...... 18,640 5,877 5,877 10,132 Tier 2 Group B ...... 8,775 2,848 2,848 4,823 Tier 2 Group C ...... 17,489 4,214 4,214 8,639 Tier 2 Theft ...... 257,567 48,700 48,700 118,322

Total ...... 415,852 84,648 84,648 195,049

Total Annual Burden Hours first step was to derive from previous employees and contractors, (2) frequent tables in this notice the estimated visitors, and (3) infrequent visitors. The The total annual burden hours were number of initial submissions for Tier 1 derived estimates are shown in Table estimated in a three step process. The and Tier 2 facilities: (1) Full time 18.

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TABLE 19—STEP 1 OF ESTIMATING THE TOTAL ANNUAL BURDEN HOURS [Estimate of initial submissions for Tier 1 & 2 facilities in Year 1]

A B C D E = (A × D) F = (B × D) G = (C × D)

Response to Initial Initial 2012 CFATS Initial Initial Initial top screen submis- submis- personnel submis- submis- submis- question sions— sions— surety sions— sions— sions— Q:1.45–400 frequent visi- infrequent program full time em- frequent visi- infrequent (Table 11) tors visitors analysis ployees and tors visitors (Table 7) (Table 7) (normalized) contractors (Year 1) (Year 1) (Table 6) (Year 1)

Tier 1 Group A ...... 599 600 600 4 2,686 2,692 2,692 Tier 1 Group B ...... 36 150 150 7 241 1,010 1,010 Tier 1 Group C ...... 300 150 150 11 3,362 1,683 1,683 Tier 1 Theft ...... 653 25 25 104 68,098 2,608 2,608 Tier 2 Group A ...... 222 600 600 9 1,994 5,384 5,384 Tier 2 Group B ...... 30 150 150 18 543 2,692 2,692 Tier 2 Group C ...... 489 150 150 17 8,228 2,524 2,524 Tier 2 Theft ...... 416 25 25 449 186,433 11,217 11,217

Total ...... n/a n/a n/a n/a 271,585 29,809 29,809

The second step of estimating the submission by the type of submission. for Tier 1 and Tier 2 Facilities over three total annual burden hours was to The average annual number of years is shown in Table 20. estimate the average annual number of submissions, by the type of submission

TABLE 20—STEP 2 OF ESTIMATING THE TOTAL ANNUAL BURDEN HOURS [Average annual estimate of total number of submissions, by type of submission, for Tier 1 and Tier 2 facilities in each year]

A B A × B = C (A + B) * 0.05 C

Initial Annual Additional Update/ Removal due submissions turnover submissions corrections to turnover percentage due to industry turnover

Year 1 Full Time Employees and Contractors ...... 271,585 20 54,317 16,295 54,317 Frequent Visitors...... 29,809 81.75 24,369 2,709 24,369 Infrequent Visitors...... 29,809 20 5,962 1,789 5,962 Year 1 Submissions ...... 415,853 ...... 20,793 84,648 Year 2 Full Time Employees and Contractors ...... 0 ...... 54,317 2,716 54,317 Frequent Visitors ...... 0 ...... 24,369 1,218 24,369 Infrequent Visitors ...... 0 ...... 5,962 298 5,962 Year 2 Submissions ...... 84,648 ...... 4,232 84,648 Year 3 Full Time Employees and Contractors ...... 0 ...... 54,317 2,716 54,317 Frequent Visitors ...... 0 ...... 24,369 1,218 24,369 Infrequent Visitors ...... 0 ...... 5,962 298 5,962 Year 3 Submissions ...... 84,648 ...... 4,232 84,648 Total Submissions Over 3 Years ...... 585,149 ...... 29,257 253,944 Number of Average Annual Submissions ...... 195,050 ...... 9,752 84,648

The third, and final step of estimating multiplied by the estimated time per respondents that are expected to no the total annual burden hours, was to initial respondent (0.50 hours or 30 longer have access to a high-risk sum the average annual burden hours minutes); (2) respondents for which a chemical facility’s restricted area(s) for each type of submission. high-risk chemical facility will need to multiplied by the number of hours The average annual burden hour for update/correct information multiplied necessary to notify the Department (i.e., each type of submission was estimated by the number of hours necessary to 0.17 hours or 10 minutes). by multiplying the average annual type and submit each update/correction Both calculations described above are number of: (1) Initial respondents (i.e., 0.17 hours or 10 minutes); and (3) displayed below in Table 21.

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TABLE 21—STEP 3 OF ESTIMATING THE ANNUAL BURDEN ESTIMATE

A B (A × B) = C

Average an- Duration Burden hours nual respond- (hours) ents

Initial Submissions ...... 195,049 0.50 97,525 Updates/Corrections ...... 9,752 0.17 1,658 Removal—Turnover ...... 84,648 0.17 14,390

...... 113,573

Therefore, the average annual burden To avoid making unjustified readers at the high-risk chemical is estimated to be 113,573 hours. The assumptions, and to avoid facilities. underestimating the time per Department’s rounded estimate is Estimating Capital Costs for Option 3— respondent, the Department decided to 113,600 hours. Number and Type of High-Risk estimate the average burden per Chemical Facilities That May Choose To Estimated Time per Respondent respondent by assuming each and every Use Option 3 For the purpose of estimating the time respondent’s information will be High-risk chemical facilities and their per respondent, the Department manually submitted, rather than designees have wide latitude in how considered making an assumption about uploaded via a bulk file or web-service, they may implement Option 3, if they the percentage of affected individuals to the Department for vetting for choose to do so. High-risk chemical under the three options outlined in the terrorist ties. Accordingly, the Department’s facilities could propose, in their SSPs or summary section of this notice (e.g., ‘‘estimated time per respondent’’ is ASPs, to share the costs of TWIC readers information about one-third of affected estimated by dividing the average and any associated infrastructure at individuals would be submitted for annual burden hours (113,573 hours) by central locations, or high-risk chemical direct vetting against the federal the number of respondents (195,049). facilities could propose to purchase and government’s consolidated and Therefore, for the purpose of this notice, install TWIC readers for their own use. integrated terrorist watchlist, the estimated time per respondent is The Department will assess the information about one-third of affected 0.5822 hours. The Department’s adequacy of such proposals on a individuals would be submitted to rounded estimate is 0.58 hours. facility-by-facility basis, in the course of verify enrollment in other DHS evaluating each facility’s SSP or ASP. programs, and information about one- Total Burden Cost (Capital/Startup) For the purpose of this notice, the third of affected individuals would not The Department expects no capital/ Department estimates that the number be submitted because they possess startup cost for high-risk chemical of high-risk chemical facilities that are TWICs that high-risk chemical facilities facilities that choose to implement likely to implement Option 3 is the would electronically verify through the Option 1 or Option 2. number of high-risk chemical facilities use of TWIC readers). However, the Although there are no costs associated likely to have affected individuals who Department concluded that such an with high-risk chemical facilities possess TWICs accessing their restricted assumption was unwarranted because: providing information to the areas or critical assets. Through the (1) The assumption would be without Department under Option 3, the 2012 CFATS Personnel Surety Program any factual basis; (2) the burden to Department has nonetheless estimated Analysis, the Department determined submit information about an affected the potential capital costs incurred by that there are currently 32 high-risk individual for direct vetting is high-risk chemical facilities that choose chemical facilities that have claimed a approximately the same as the burden to to implement Option 3 under the partial Maritime Transportation submit information in order to verify CFATS Personnel Surety Program to Security Act (MTSA) exemption 42 and enrollment (i.e., similar number of ensure an appropriate accounting of the have received a final tier determination required data elements); and (3) the costs potentially incurred by this under CFATS. The Department then most conservative burden estimate Information Collection. The capital cost normalized the facility count by would assume that information is of Option 3 can be estimated by multiplying the number of facilities that submitted for all affected individuals multiplying (1) the number of high-risk claimed a partial exemption in each (i.e., no facilities will choose to chemical facilities that are likely to category by a factor of 1.22 (as it did in electronically verify the TWIC in the implement Option 3 by (2) the cost to estimating the total number of facilities possession of an affected individual). acquire, install, and maintain TWIC in Table 6 above), as shown in Table 22.

42 Facilities that are partially regulated under both question is available on page 22 of the CSAT Top- http://www.dhs.gov/xlibrary/assets/chemsec_ MTSA and CFATS have the opportunity to identify Screen Survey Application User Guide v1.99. See csattopscreenusersmanual.pdf. themselves in the CSAT Top-Screen. The text of the

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TABLE 22—ESTIMATE OF NUMBER OF HIGH-RISK CHEMICAL FACILITIES THAT MAY CHOOSE TO USE TWIC READERS

A A × 1.22

2012 CFATS 2012 CFATS personnel sur- personnel sur- ety program ety program analysis analysis (normalized)

Tier 1 Group A ...... 0 0 Tier 1 Group B ...... 0 0 Tier 1 Group C ...... 0 0 Tier 1 Theft ...... 0 0 Tier 2 Group A ...... 0 0 Tier 2 Group B ...... 0 0 Tier 2 Group C ...... 1 1 Tier 2 Theft ...... 3 3 Tier 3 Group A ...... 3 3 Tier 3 Group B ...... 0 0 Tier 3 Group C ...... 2 2 Tier 3 Theft ...... 13 15 Tier 4 Group A ...... 1 1 Tier 4 Group B ...... 2 2 Tier 4 Group C ...... 0 0 Tier 4 Theft ...... 7 8

Total ...... 32 35

Estimating Capital Costs for Option 3— terminals, petroleum facilities, break- reoccurring cost without equipment TWIC Reader Costs bulk terminals and small passenger replacement to align with the TWIC For the purpose of this notice, the vessels/towboats. For the purpose of Reader Requirements NPRM assumption Department has based the potential per this notice, the Department has based that equipment replacement cost occurs high-risk chemical facility capital costs the capital costs related to Option 3 on every five years. This notice estimates related to Option 3 on the TWIC Reader the costs incurred by the petroleum average annual costs for a three year Requirements notice of proposed facilities (i.e., bulk liquid facilities) in period. Thus, for the purposes of this rulemaking (NPRM).43 In the TWIC the TWIC Reader Requirements NPRM. notice the estimated the capital costs Reader Requirements NPRM, the Specifically, the Department estimated per facility is $99,953.33, [(($256,267 + × Department estimated the initial phase- the capital costs in this notice to be the ($14,531 3))/3]. in costs annual recurring costs, and average of the initial phase-in cost plus The Department then calculated the annual recurring costs that considers three years of the annual reoccurring capital costs for the 35 high-risk equipment replacement for container cost without equipment replacement. chemical facilities, as shown in Table terminals, large passenger vessels/ NPPD opted to use the annual 23.

TABLE 23—CAPITAL COST BURDEN ESTIMATE FOR HIGH-RISK CHEMICAL FACILITIES THAT MAY CHOOSE TO USE TWIC READERS

A B (A × B)

Number of Average TWIC Capital cost of TWIC facilities reader reader implementation implementa- tion cost per facility

Tier 1 Group A ...... 0 $99,953 $0 Tier 1 Group B ...... 0 99,953 0 Tier 1 Group C ...... 0 99,953 0 Tier 1 Theft ...... 0 99,953 0 Tier 2 Group A ...... 0 99,953 0 Tier 2 Group B ...... 0 99,953 0 Tier 2 Group C ...... 1 99,953 99,953 Tier 2 Theft ...... 3 99,953 299,860 Tier 3 Group A ...... 3 99,953 299,860 Tier 3 Group B ...... 0 99,953 0 Tier 3 Group C ...... 2 99,953 199,907 Tier 3 Theft ...... 15 99,953 1,499,300

43 See 78 FR 17781 (March 22, 2013). The TWIC 22/2013-06182/transportation-worker- readers may change as a result of updates to price Reader Requirements NPRM Table 4 may be found identification-credential-twic-reader- data and public comment received on the TWIC at https://www.federalregister.gov/articles/2013/03/ requirements#t-6. Future cost estimates for TWIC Reader Requirements NPRM.

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TABLE 23—CAPITAL COST BURDEN ESTIMATE FOR HIGH-RISK CHEMICAL FACILITIES THAT MAY CHOOSE TO USE TWIC READERS—Continued

A B (A × B)

Number of Average TWIC Capital cost of TWIC facilities reader reader implementation implementa- tion cost per facility

Tier 4 Group A ...... 1 99,953 99,953 Tier 4 Group B ...... 2 99,953 199,907 Tier 4 Group C ...... 0 99,953 0 Tier 4 Theft ...... 8 99,953 799,627

Total ...... 35 n/a 3,498,367

The capital cost for the 35 high-risk Tier 1 and Tier 2 facilities. Therefore, is $399,813, as shown in Table 24. The chemical facilities totals $3,498,367.67; for the purpose of this notice, the Department’s rounded estimate is however, the Department intends to Department estimates the capital cost $399,800. limit this information collection to only for the implementation of TWIC readers

TABLE 24—CAPITAL COST BURDEN ESTIMATE FOR TIER 1 & 2 HIGH-RISK CHEMICAL FACILITIES THAT MAY CHOOSE TO USE TWIC READERS

A B (A × B)

Number of Average TWIC Capital cost of facilities reader imple- TWIC reader mentation cost implementa- per facility tion

Tier 1 Group A ...... 0 $99,953 $0 Tier 1 Group B ...... 0 99,953 0 Tier 1 Group C ...... 0 99,953 0 Tier 1 Theft ...... 0 99,953 0 Tier 2 Group A ...... 0 99,953 0 Tier 2 Group B ...... 0 99,953 0 Tier 2 Group C ...... 1 99,953 99,953 Tier 2 Theft ...... 3 99,953 299,860

Total ...... 4 n/a 399,813

Consideration of Other Capital Costs designing, deploying and operating facilities would incur to conduct information technology (IT) systems background checks for identity, criminal The burden estimates outlined in this necessary to maintain the data history, and legal authorization to work notice are limited in scope to those collection, submissions, and tracking; under 6 CFR 27.230(a)(12)(i)–(iii), and activities listed in 5 CFR 1320.3(b)(1). (3) cost of training facility personnel to also under various other federal, state, Specifically, 5 CFR 1320.3(b)(1) and 5 maintain the data collection, or local laws or regulations. CFR 1320.8 require the Department to submissions, and tracking; and (4) site estimate the total time, effort, or security officer time to manage the data Recordkeeping Costs financial resources expended by persons collection, submissions, and tracking. to generate, maintain, retain, disclose or High-risk chemical facilities are not However, the Department has required to create, keep, or retain provide information to or for a federal concluded that these costs should be agency. Therefore, many costs (e.g., facility records under 6 CFR 27.255 to excluded in accordance with 5 CFR comply with RBPS 12(iv). If a high-risk physical modification of the facility 1320.3(b)(2), which directs federal layout) a facility may choose to incur to chemical facility elects, for its own agencies to not count the costs business purposes, to create, keep, or develop or implement its SSP or ASP associated with the time, effort, and should not be accounted for when retain facility records that identify and financial resources incurred in the manage the submission of information estimating the capital costs associated normal course of their activities (e.g., in with this information collection. about affected individuals, those records compiling and maintaining business are not government records. The Department did consider records) if the reporting, recordkeeping, estimating certain facility capital costs or disclosure activities are usual and The recordkeeping costs, if any, to such as: (1) Capital costs for computer, customary. create, keep, or retain facility records telecommunications equipment, The Department believes that the pertaining to background checks as part software, and storage to manage the data time, effort, and financial resources are of a high-risk chemical facility’s SSP or collection, submissions, and tracking; usual and customary costs because these ASP, are properly estimated in the (2) capital and ongoing costs for are costs that high-risk chemical recordkeeping estimates associated with

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the SSP Instrument under Information customary. The Department believes appropriate facility personnel; (2) the Collection 1670–0007.44 that the types of recordkeeping capital costs ($399,800); and (3) The Department considered associated with RBPS 12(iv) are usual recordkeeping costs ($0). estimating the potential recordkeeping and customary costs that high-risk Comments associated with the burden associated with RBPS 12(iv), but chemical facilities would incur to previous ICR suggested an appropriate subsequently concluded that no conduct background checks for identity, wage rate between $20 and $40 per potential recordkeeping should be criminal history, and legal authorization hour; the Department picked the estimated in this notice in accordance to work as required by RBPS (12)(i)–(iii) with 5 CFR 1320.3(b)(2), which directs midpoint of $30 to estimate the hourly and also by various other federal, state, direct wage rate, which corresponds to federal agencies to not count the costs or local laws or regulations. associated with the time, effort, and a fully loaded wage rate of $42. financial resources incurred in the Total Burden Cost (Operating/ Therefore, the annual burden not normal course of their activities (e.g., in Maintaining) including capital costs and compiling and maintaining business The annual burden cost is equal to the recordkeeping costs is $4,770,051 as records) if the reporting, recordkeeping, sum of the: (1) Annual burden hours shown in Table 25. The rounded or disclosure activities are usual and multiplied by the hourly wage rate for estimate is $4,770,000.

TABLE 25—ESTIMATE OF ANNUAL BURDEN COST FOR TIER 1 & TIER 2 FACILITIES

A B (A × B)

Burden Waste rate Cost (hours)

Initial Submission ...... 97,525 $42 $4,096,032 Updates/Corrections ...... 1,658 42 69,633 Removal-Turnover ...... 14,390 42 604,386

Total Burden Cost (operating/maintaining) ...... 113,573 42 4,770,051

Therefore, the total annual burden (4) Minimize the burden of the Site Security Plan or Alternative cost is $4,844,008, after the inclusion of collection of information on those who Security Plan. the $399,813 capital cost burden. The are to respond, including through the Affected Public: Business or other for- Department’s rounded estimate is use of appropriate automated, profit. $4,844,000. electronic, mechanical, or other Number of Respondents: 195,000 technological collection techniques or affected individuals. VI. Solicitation of Comments other forms of information technology, Estimated Time per Respondent: 0.58 OMB is particularly interested in e.g., permitting electronic submissions hours. comments which: of responses. Total Burden Hours: 113,600 annual (1) Evaluate whether the proposed burden hours. VII. Analysis collection of information is necessary Total Burden Cost (capital/startup): for the proper performance of the Agency: Department of Homeland $399,800. functions of the agency, including Security, National Protection and Total Recordkeeping Burden: $0. whether the information will have Programs Directorate, Office of Total Burden Cost (operating/ practical utility; Infrastructure Protection, Infrastructure maintaining): $4,844,000. (2) Evaluate the accuracy of the Security Compliance Division. Dated: January 17, 2014. agency’s estimate of the burden of the Title: Chemical Facility Anti- Scott Libby, proposed collection of information, Terrorism Standards (CFATS) Personnel including the validity of the Deputy Chief Information Officer, National Surety Program. Protection and Programs Directorate, methodology and assumptions used; OMB Number: 1670—NEW. Department of Homeland Security. (3) Enhance the quality, utility, and clarity of the information to be Frequency: Other: In accordance with [FR Doc. 2014–02082 Filed 1–31–14; 8:45 am] collected; and the compliance schedule or the facility BILLING CODE 9110–9P–P

44 Information Collection 1670–0007 may be viewed at http://www.reginfo.gov/public/do/ PRAViewICR?ref_nbr=201001-1670-007#.

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